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Welfare Reform Act (1996) Introduction

Welfare Reform Act (1996) Introduction The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 sought to fundamentally change the “culture of poverty” in America. The act: Ended welfare as an entitlement program. Placed a lifetime limit on benefits of 60 months.

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Welfare Reform Act (1996) Introduction

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  1. Welfare Reform Act (1996) • Introduction • The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 sought to fundamentally change the “culture of poverty” in America. • The act: • Ended welfare as an entitlement program. • Placed a lifetime limit on benefits of 60 months. • Placed money in the hands of the states, which allowed for innovation in welfare reform.

  2. Welfare Reform Act (1996) • Introduction • Recipients of TANF (Temporary Assistance for Needy Families) would have to work or be looking for work. • Recipients must leave welfare rolls completely after a total of 60 months of Federal benefits.

  3. Welfare Reform Act (1996) • Evaluation • The bill was followed by a reduction in unemployment from 1996 to 2000. • Some claim this reduction occurred because of the PRWORA. • Others note that the economy grew rapidly during this period.

  4. Welfare Reform Act (1996) • Evaluation • The bill can be particularly difficult to implement in rural areas because of a lack of jobs, distance to work, low availability of child care, and poor quality labor in areas of persistent poverty. • Most states have extended the limit on receipt of benefits: • to assist persons in need, and • to bring Federal funds into the state.

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