The Brookings Institution, Washington, D.C.www.brookings.edu Overview of the 1996 Welfare Reform Law: Temporary Assistance for Needy Families Program Reduction.

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Presentation transcript:

The Brookings Institution, Washington, D.C. Overview of the 1996 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. 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. Provisions in Welfare Reform Law Designed to Fight I llegitimacy 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. 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. AFDC/TANF Caseload,

The Brookings Institution, Washington, D.C. Family Income from Welfare vs. Low-Wage Work

The Brookings Institution, Washington, D.C. Percentage of Married, Single, and Never-Married Mothers Working,

The Brookings Institution, Washington, D.C. Average Income of Female Family Heads with Children in the Bottom Fifth of Post-Tax Income, Source of Income in $ in % Earnings 1,331 2,417 +1, Cash Welfare 2,107 1, Food Stamps 1, Child Support EITC Other 1,535 1, Total 6,711 7, Total Income

The Brookings Institution, Washington, D.C. Average Income of Female Family Heads with Children in the Second Fifth of Post-Tax Income, Source of Income in $ in % Earnings 4,815 9,603 +4, Cash Welfare 3,099 1,361 -1, Food Stamps 1, Child Support EITC 678 1,973 +1, Other 2,479 1, Total 13,201 16,019 +2, Total Income

The Brookings Institution, Washington, D.C. Welfare Caseloads and Child Poverty Decline Simultaneously, Year

The Brookings Institution, Washington, D.C. Decline in Child Poverty by Broad Definition, and Source: Bureau of the Census Year s 1990s 15.5 Decline

The Brookings Institution, Washington, D.C. Support for Working Families Increases Dramatically between 1984 and 1999 Spending in 1999 under: 1984 Law 1999 Law Source: Congressional Budget Office

The Brookings Institution, Washington, D.C. Number of Births, Birthrate, and Percent of Births to Unmarried Women: United States, # # # # # # # # # # # # ## # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ## # ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** * * * * * * Percent unmarried Births per 1,000 unmarried women Births in 1000's Percent Birth rate Number of births SOURCE: National Center for Health Statistics.

The Brookings Institution, Washington, D.C. Teen Birthrate,

The Brookings Institution, Washington, D.C. Number of Children Receiving SSI Benefits,

The Brookings Institution, Washington, D.C. Child Support Collections Are Up

The Brookings Institution, Washington, D.C. Number of Noncitizen Families in Selected Welfare Programs, 1995 and 1999 Medicaid Food Stamps TANF SSI Program and Year Source: Urban Institute tabulations of current population source data

The Brookings Institution, Washington, D.C. Federal Spending on Child Care, Year Expenditures (Billions, 1999) Source: Besharov & Germanis, American Enterprise Institute Note: 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