Welfare Reform in America

WELFARE REFORM Potential Effects of Congressional Welfare Reform Legislation on Family Incomes Welfare Reform bills would substantially change the current social safety net. These bills would replace Aid to Families with Dependent Children (AFDC) with block grants to the states with a fixed federal payment. In addition, states would be prohibited from using federal money to provide assistance to families for more than five years. The bills also would eliminate federal welfare payments to legal …

…We show some possible modifications to the legislation that would retain more of the social safety net for low-income children and reduce the adverse effects on family incomes. The projected increase in poverty could be attenuated, for example, by increasing the hardship exemption, providing vouchers to support children whose parents do not find work at the end of the time limit, modifying the provisions that affect legal immigrants, and reducing the Food Stamp program cuts.