1. The Brookings Institution, Washington, D.C.www.brookings.edu 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

2. 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

3. The Brookings Institution, Washington, D.C.www.brookings.edu 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

4. 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

5. The Brookings Institution, Washington, D.C.www.brookings.edu AFDC/TANF Caseload, 1959-1999

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

7. The Brookings Institution, Washington, D.C.www.brookings.edu Percentage of Married, Single, and Never-Married Mothers Working, 1985-1999

8. 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 1993-1999 Source of Income 1993 1999 in $ in % Earnings 1,331 2,417 +1,086 + 82 Cash Welfare 2,107 1,218 - 889 - 42 Food Stamps 1,276 988 - 288 - 23 Child Support 253 365 + 112 + 44 EITC 209 716 + 507 +243 Other 1,535 1,902 + 367 + 24 Total 6,711 7,606 + 895 + 13 Total Income

9. 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 1993 - 99 Source of Income 1993 1999 in $ in % Earnings 4,815 9,603 +4,788 + 99 Cash Welfare 3,099 1,361 -1,738 - 56 Food Stamps 1,684 810 - 874 - 52 Child Support 446 540 + 94 + 21 EITC 678 1,973 +1,295 +191 Other 2,479 1,732 - 747 - 30 Total 13,201 16,019 +2,818 + 21 Total Income

10. The Brookings Institution, Washington, D.C.www.brookings.edu Welfare Caseloads and Child Poverty Decline Simultaneously, 1995-1999 1995 1996 1997 1998 1999 Year

11. The Brookings Institution, Washington, D.C.www.brookings.edu Decline in Child Poverty by Broad Definition, 1983-89 and 1993-99 Source: Bureau of the Census Year 21.3 18.0 20.0 12.9 35.5 1983 1989 1993 1999 1980s 1990s 15.5 Decline

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

13. The Brookings Institution, Washington, D.C.www.brookings.edu Number of Births, Birthrate, and Percent of Births to Unmarried Women: United States, 1940-99 # # # # # # # # # # # # ## # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ## # ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** * * * * * * 1940195019601970198019901999 0 10 20 30 40 50 60 70 Percent unmarried 0 200 400 600 800 1000 1200 1400 Births per 1,000 unmarried women Births in 1000's Percent Birth rate Number of births SOURCE: National Center for Health Statistics.

14. The Brookings Institution, Washington, D.C.www.brookings.edu Teen Birthrate, 1980-1998

15. The Brookings Institution, Washington, D.C.www.brookings.edu Number of Children Receiving SSI Benefits, 1985-2000

16. The Brookings Institution, Washington, D.C.www.brookings.edu Child Support Collections Are Up

17. The Brookings Institution, Washington, D.C.www.brookings.edu 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

18. 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 198519861987198819891990199119921993199419951996199719981999 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