WASHINGTON - The U.S. Census Bureau today announced the release of its annual report entitled “Poverty in the United States.” While the overall 2001 poverty rates reflect slight increases over 2000 levels, the national poverty rate remains lower than in any year between 1979 and 1999.

Poverty rates for African American children, including those in female-headed households, declined further to record lows. Similarly, poverty rates for Hispanic children remained stable near record lows, and poverty among those living in central cities remained unchanged.

“These data show that welfare reform is continuing to help hold down poverty rates, despite the recent dips in the economy,” said Wally Herger (R-CA), Human Resources Subcommittee Chairman. “Especially given the recent recession, this is further evidence that reform - and not the economy - is the primary reason that work and earnings have increased while caseloads and poverty have been reduced.”

“Everyone on welfare is in poverty. The Senate bill provides incentives for larger welfare caseloads and longer welfare stays that will translate into more, not less, poverty,” said Herger. “The Senate needs to act on welfare reauthorization, but they must choose policies that advance the interests of low-income families, not trap them deeper in a cycle of dependence.”

“Studies indicate that if you want to get people out of poverty you need to get them to work. Education-only programs, which would be allowed under the Senate bill, do not lift people out of poverty. In fact, during the old AFDC Program, which did not emphasize work, people stayed on welfare for an average of 13 years,” said Rep. Jim McCrery (R-LA), a member of the Human Resources Subcommittee.

“We know that AFDC was not successful at reducing poverty. Poverty rates and welfare caseloads swelled into the early 1990s until various States and then the Federal government initiated work-based reforms that have driven poverty rates down sharply,” McCrery added.

On May 16, 2002, the House passed H.R. 4737, the Personal Responsibility, Work and Family Promotion Act of 2002, extending and improving upon the successful 1996 welfare reform law. The House bill specifies that reducing poverty should be a primary goal of welfare, while the Senate bill does not. The House bill also includes many provisions helping more families go to work and leave welfare, which is the only sure path out of poverty.

The Temporary Assistance for Needy Families (TANF) program created by the 1996 law expires on September 30, 2002. With less than one week remaining before time runs out on welfare reform, the Senate has failed to pass a reauthorization bill.