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The Federal Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) enacted in August 1996 drastically reformed the welfare system, starting in July 1997. PRWORA set time limits on benefits and imposed new behavioral requirements on those who receive them. It gave states flexibility in how they implemented reform in the face of almost $55 billion in Federal cuts to the Food Stamp, TANF and SSI budgets. Remaining state funds got divvied up as fixed block grants. PRWORA expires on September 30, 2002, when Congress must reauthorize it. Some 133,727 people left Missouri’s Temporary Assistance for Needy Families (TANF – formerly called AFDC) rolls between January 1993 and October 2001. To some, declining rolls and low-wage employment equal “success.” They point to workforce attachment as a positive influence on future earnings and to declining poverty rates seen during the economic expansion of recent years. Others say that not enough families who left the rolls have been able to make ends meet and that “success” is achieved only when families are lifted from poverty. Welfare reform critics say that families have always cycled on and off welfare and that those who are left on the rolls have severe barriers to employment. They worry that the slowing economy may force families to return to welfare. As reauthorization discussions unfold, policy makers need accurate information to drive their decisions. They also need to hear from citizens, especially those who struggle to meet basic needs, so that policy decisions are realistic and effective. This Poverty At Issue looks at one question — What does it take for families to make ends meet without public assistance? — from several perspectives. To the extent that policy makers seek to lift families from poverty, this is the central question. I hope you find the information helpful. Back to Poverty at Issue-Winter 01-02 Table of Contents
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