Overview of the 1996 Welfare Reform Law:

1. Overview of the1996 Welfare Reform Law: • Temporary Assistance for Needy Families Program • Reduction of Non-marital Births • Supplemental Security Income for Children • Child Support Enforcement • Welfare for Non-citizens • Child Care The Brookings Institution, Washington, D.C. www.brookings.edu

2. 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

3. 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

4. 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

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

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

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

8. Average Income of Female Family Heads with Children in the Bottom Fifthof Post-Tax Income, 1993-99 Total Income 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 The Brookings Institution, Washington, D.C. www.brookings.edu

9. Average Income of Female Family Heads with Children in the Second Fifthof Post-Tax Income, 1993-99 Total Income 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 The Brookings Institution, Washington, D.C. www.brookings.edu

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

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

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

13. Births in 1000's Births per 1,000 unmarried women 70 1400 Number ! ! ! ! ! ! of births ! ! ! 60 1200 ! ! 50 1000 ! * ! * * * * * * * ! * * * Birth ! 40 800 ! * rate ! * Percent unmarried ! ! * ! # * # # # # # * # 30 600 * # * ! # * * # ! * # * ! # * * * * * * # * * * * Percent * * ! # * * * * ! # * * * * * # ! * 20 ! 400 # ! ! ! # * # * # ! # ! * # ! * # ! * # ! # * ! * # ! # * # ! * ! # ! ! * # ! 10 200 * ! # ! # ! # * ! # * ! * * # ! ! * ! # ! ! ! # ! ! # # ! # # # ! ! ! # # # ! # # # # # # # # # # # # # # # 0 0 1940 1950 1960 1970 1980 1990 1999 SOURCE: National Center for Health Statistics. Number of Births, Birthrate, and Percent of Birthsto Unmarried Women: United States, 1940-99 The Brookings Institution, Washington, D.C. www.brookings.edu

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

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

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

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

18. 16 14 12 10 Expenditures (Billions, 1999) 8 6 4 2 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Year 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 Federal Spending on Child Care,1985-2000 The Brookings Institution, Washington, D.C. www.brookings.edu