the brookings institution, washington, d.c. overview of the 1996 welfare reform law: temporary...
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The Brookings Institution, Washington, D.C. www.brookings.edu
Overview of the1996 Welfare Reform Law:
• Temporary Assistance for Needy Families Program
• Reduction of Nonmarital Births
• Supplemental Security Income for Children
• Child Support Enforcement
• Welfare for Noncitizens
• Child Care
The Brookings Institution, Washington, D.C. www.brookings.edu
Overview of Temporary Assistance for Needy Families Program:
• Elimination of cash welfare entitlement
• Block grant funding
• Work participation standards
• Sanctions
• 5-year time limit
The Brookings Institution, Washington, D.C. www.brookings.edu
Provisions in Welfare Reform LawDesigned to Fight Illegitimacy
• Congressional findings on the negative effects of nonmarital births
• Creation of Temporary Assistance for Needy Families Block Grant
• TANF purpose to “prevent and reduce out-of-wedlock pregnancies”
• Performance Bonus, including prevention of nonmarital births
• Illegitimacy reduction bonus
• Require teens to attend school
• Require teens to live at home or in other adult-supervised setting
• Abstinence education
• Child support enforcement
• Paternity establishment
• National goals to prevent teen pregnancy
• States establish numerical goals for illegitimacy reduction
• Annual ranking of states on nonmarital pregnancy rations by HHS
• Allow family cap
• Allow reduction in cash benefits
The Brookings Institution, Washington, D.C. www.brookings.edu
Results at Four Years:
• Welfare-to-work (TANF)• Reduction of nonmarital births• Supplemental security income for children• Child support enforcement• Welfare for noncitizens• Child care
The Brookings Institution, Washington, D.C. www.brookings.edu
0
1
2
3
4
5
6
1959
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
Year
Mill
ions
of
Fam
ilies
AFDC/TANF Caseload, 1959-1999
The Brookings Institution, Washington, D.C. www.brookings.edu
Family Income fromWelfare vs. Low-Wage Work
Aid to Families with Dependent Children $4,500 Earnings $10,000
Earned Income Credit $3,500Food Stamps $3,500 Food Stamps $2,000
$8,000 $15,500
Welfare Work
The Brookings Institution, Washington, D.C. www.brookings.edu
Percentage of Married, Single,and Never-Married Mothers Working,
1985-1999
35
40
45
50
55
60
65
70
75
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99
Year
Per
cent
age
of M
othe
rs W
ork
ing
Married Mothers
Single Mothers
Never Married
Source: Gary Burtless, The Brookings Institution, 2000
The Brookings Institution, Washington, D.C. www.brookings.edu
Average Income of Female Family Heads with Children in the Bottom Fifth
of Post-Tax Income, 1993-99
$6,000
$6,200
$6,400
$6,600
$6,800
$7,000
$7,200
$7,400
$7,600
$7,800
$8,000
1993 1994 1995 1996 1997 1998 1999
Year
1993-1999Source of Income 1993 1999 in $ in %Earnings 1,331 2,417 +1,086 + 82Cash Welfare 2,107 1,218 - 889 - 42Food Stamps 1,276 988 - 288 - 23Child Support 253 365 + 112 + 44EITC 209 716 + 507 +243Other 1,535 1,902 + 367 + 24 Total 6,711 7,606 + 895 + 13
Tot
al I
nco
me
The Brookings Institution, Washington, D.C. www.brookings.edu
Average Income of Female Family Heads with Children in the Second Fifth
of Post-Tax Income, 1993-99
$12,000
$12,500
$13,000
$13,500
$14,000
$14,500
$15,000
$15,500
$16,000
$16,500
$17,000
1993 1994 1995 1996 1997 1998 1999Year
1993 - 99 Source of Income 1993 1999 in $ in %Earnings 4,815 9,603 +4,788 + 99Cash Welfare 3,099 1,361 -1,738 - 56Food Stamps 1,684 810 - 874 - 52Child Support 446 540 + 94 + 21EITC 678 1,973 +1,295 +191Other 2,479 1,732 - 747 - 30 Total 13,201 16,019 +2,818 + 21
Tot
al I
nco
me
The Brookings Institution, Washington, D.C. www.brookings.edu
Welfare Caseloads and Child Poverty Decline Simultaneously,
1995-1999
-25
-20
-15
-10
-5
0P
erc
en
tag
e D
ec
line
Welfare Caseload
Child Poverty
Black Child Poverty
1995 1996 1997 1998 1999
Year
The Brookings Institution, Washington, D.C. www.brookings.edu
Decline in Child Poverty by Broad Definition, 1983-89 and 1993-99
0
5
10
15
20
25
30
35
40P
erc
en
t in
Po
ve
rty
or
De
clin
e
Source: Bureau of the CensusYear
21.3
18.0
20.0
12.9
35.5
1983 1989 1993 1999 1980s 1990s
15.5
Decline
The Brookings Institution, Washington, D.C. www.brookings.edu
Support for Working FamiliesIncreases Dramatically between 1984 and 1999
0
10
20
30
40
50
Bil
lion
s of
199
9 D
olla
rs
Child Care
CHIP
Child Credit
Medicaid
EIC
Spending in 1999 under: 1984 Law 1999 Law
Source: Congressional Budget Office
The Brookings Institution, Washington, D.C. www.brookings.edu
Number of Births, Birthrate, and Percent of Birthsto Unmarried Women: United States, 1940-99
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1940 1950 1960 1970 1980 1990 19990
10
20
30
40
50
60
70
Pe
rce
nt u
nmar
ried
0
200
400
600
800
1000
1200
1400Births per 1,000 unmarried women Births in 1000's
Percent
Birthrate
Numberof births
SOURCE: National Center for Health Statistics.
The Brookings Institution, Washington, D.C. www.brookings.edu
Teen Birthrate, 1980-1998
495051525354555657585960616263
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
Year
Rat
e pe
r 1,
000
Wom
en
The Brookings Institution, Washington, D.C. www.brookings.edu
Number of Children Receiving SSI Benefits, 1985-2000
0
200000
400000
600000
800000
1000000
1200000
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Year
Nu
mb
er
of
Ch
ildre
n
Re
ce
ivin
g S
SI
The Brookings Institution, Washington, D.C. www.brookings.edu
Child Support Collections Are Up
9.8
18.0
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
1994 2000
Year
Ch
ild S
upp
ort
Co
llect
ion
s in
Bill
ion
s
The Brookings Institution, Washington, D.C. www.brookings.edu
Number of Noncitizen Families in Selected Welfare Programs,
1995 and 1999
200
400
600
800
1000
1200
1400
1600
1800
2000
1995 1999 1995 1999 1995 1999 1995 1999
Nu
mb
er
on
We
lfa
re (
tho
us
an
ds
)
Medicaid Food Stamps TANF SSI
Program and Year
Source: Urban Institute tabulations of current population source data
The Brookings Institution, Washington, D.C. www.brookings.edu
Federal Spending on Child Care,1985-2000
0
2
4
6
8
10
12
14
16
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
Year
Exp
end
itu
res
(Bill
ion
s, 1
999)
Source: Besharov & Germanis, American Enterprise InstituteNote: Includes Head Start, Child and Adult Feeding Programs, Title XX Block Grant, old AFDC Programs, Child Care and Development Block Grant, and Temporary Assistance for Needy Family Funds
2000