This chapter examines key public assistance programs, including the former Aid to Families with Dependent Children (AFDC); AFDC’s replacement, Temporary Assistance to Needy Families (TANF); Supplemental Security Income (SSI); and general assistance (GA). The chapter also investigates and analyzes the problems and issues inherent in public assistance programs.
2. SOCIAL INSURANCEVERSUS
PUBLIC ASSISTANCE
Public Assistance:
Program is financed out of general tax revenues (money
collected by Federal government)
The recipients are required to show that they are poor in
order to claim benefits
Means test. Income and asset tests designed to determine
whether an individual or household meets the economic
criteria necessary for receiving governmental cash transfers
or in-kind services
3. SOCIAL INSURANCEVERSUS
PUBLIC ASSISTANCE
Social insurance programs are social security, SSDI,
Medicare, Unemployment, Workers’ Compensation
Public assistance programs are Medicaid, SSI, TANF, WIC,
SNAP
Social insurance programs encompassed a greater part of
the federal budget
5. AIDTO DEPENDENT CHILDREN
◦Part of the Social Security Act of 1935
◦To prevent the disruption of families due to poverty
◦Would enable the mother to stay at home and devote
herself to housekeeping and the care of her children”
◦Provided money to mother’s on behalf of children
6. AIDTO FAMILIESWITH
DEPENDENT CHILDREN
In order to receive assistance, child must have
been deprived of parental support due to death,
desertion, separation, or divorce
ADC modified to include disabled fathers
7. MAN-IN-THE-HOUSE RULES
Morality of those on public assistance becomes a public
concern
Neither the father, nor other men should be in the home
benefitting from welfare check
The checks were to aid the children and no one else
“Midnight Raids” – late nights visits to check if able-
bodied male lived with families receiving ADC.
8. AIDTO FAMILIESWITH
DEPENDENT CHILDREN
Provided payments that took mother and head of
household into account
◦ Criticism: Led to fathers leaving the home in order for
family to qualify for program
◦ Fixed in 1967 by creating the unemployed fathers’
program (AFDC-UP) and changing name back to AFDC
to show importance on family unity
9. PRWORA
Personal Responsibility and Work
Opportunity Reconciliation Act of 1996
Passed by President Clinton
Gave the states back responsibility for handling and
managing welfare programs
"Ending Welfare as we know it"
10. PRWORA
Welfare Behaviorism
Attempts by public officials to modify (through policy) the
behavioral patterns of low-income people who qualify for public
assistance
12. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES
Considered a disentitlement:
An entitlement has open-ended resources in that people cannot
be denied benefits because of government resource constraints
Mother’s aid, ADC, AFDC were all entitlement
TANF is a block grant to subsidize state’s programs
States must contribute a percentage of the cost or risk losing
federal funding
MOE – Maintenance of Effort
13. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES
States must also turn in a plan on how the funds will be
spent to DHHS
To meet the goals of TANF money must be used for cash
income assistance, child care, job training and education,
transportation, child protection, and other services
14. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES (TANF)
The four purposes of the TANF program are to:
Provide assistance to needy families so that children can
be cared for in their own homes
Reduce the dependency of needy parents by promoting
job preparation, work and marriage
Prevent and reduce the incidence of out-of-wedlock
pregnancies
Encourage the formation and maintenance of two-parent
families
15. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES (TANF)
“Work Eligible Adult” –
◦ U.S. citizen
◦ Not on SSI or SSDI
◦ Able to work, not needed to stay in the home during the day to care for relative
Limited to 5 years (most states; less in others)
Must go to work after 2 years of collecting the benefit (sooner in
some states)
May be temporarily replaced by job search, education, training and
vocational rehab (1 year)
16. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES (TANF)
Recipients cannot receive the benefit for more than 5
years
Unless a child-only household
Or meet one of the hardship exceptions
States may set a shorter time limit (less than 60 months)
No minor parents unless going to school and living at
home
17. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES (TANF)
Reduce or eliminate assistance if parent refuses to
cooperate with child support-related requirement, like
collection or identification of the father
Cannot be collected by legal immigrants unless in the U.S.
for more than 5 years
Can use MOE funds to help
No TANF or MOE money can go to undocumented
immigrants
18. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES (TANF)
Must be denied to those convicted of felony drug
possession, use or distribution. Does not affect family
member’s benefits
Can opt out or be overruled by state legislation
Recipients must work at least 30 hours a week; 20 hours
for single mothers
State must facilitate child care assistance
19. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES (TANF)
TANF provides incentives to states to reduce out-of-
wedlock pregnancies and births, and lowering abortion
rates; and increase child support collection
Family Cap – TANF denied in whole or in part for any
children born while the mother was collecting public
assistance
20. TEMPORARY ASSISTANCE FOR
NEEDY FAMILIES (TANF)
TANF provides incentives to states to reduce out-of-
wedlock pregnancies and births, and lowering abortion
rates; and increase child support collection
Family Cap – TANF denied in whole or in part for any
children born while the mother was collecting public
assistance
21. TEXASTANF
If a child’s parent or relative gets TANF, the parent or
relative must agree to:
Train for a job or look for work
Follow child support rules
Not quit a job
Not abuse alcohol or drugs
Take parenting skills classes
Get vaccines for their child
Make sure their child is going to school
Your Texas Benefits
22. PRWORA & CHILD SUPPORT
PRWORA strengthening child support collection efforts by
requiring:
Families must cooperate with state in collection efforts
Lead investigations to track down the non-paying parent
Order genetic testing without a court order
States must follow out-of-state child support orders
Authority to garnish wages
$5,000 arrears or more subjected to passport revocation
23. PRWORA & CHILD SUPPORT
To receive TANF and child support awards, the mother
must cooperate with establishing paternity, unless
◦ It puts the mother at risk due to domestic violence
◦ It is not in the child’s best interest
Refusal to cooperate with authority can lead to losing part
or all of their cash public assistance
24. PRWORA & CHILD SUPPORT
To receive TANF and child support awards, the mother
must cooperate with establishing paternity, unless
◦ It puts the mother at risk due to domestic violence
◦ It is not in the child’s best interest
Refusal to cooperate with authority can lead to losing part
or all of their cash public assistance
25. SUPPLEMENT SECURITY INCOME
SSI is a Federal income supplement designed to help aged,
blind and disabled persons who have little or no income
Provides cash to meet basic needs for food, clothing, and
shelter
Funded by general tax revenue (not Social Security taxes)
Means tested
26. SUPPLEMENT SECURITY INCOME
To qualify:
U.S. Citizens and some immigrants who are legal residents
Persons who are blind, disabled, or at least 65 years old
To be eligible:
Assets cannot exceed $2,000 for one person; $3,000 for a couple
Both earned or unearned income (e.g., social security and other cash
benefits, interest income) and other cash is included in determining
eligibility and payments
Part of the income of a spouse, child’s parents, or sponsor of a
qualified immigrant is also generally counted
27. SUPPLEMENT SECURITY INCOME
Problems with SSI:
• Stringent eligibility requirements and red tape
• Continued review of eligibility (every 3 years), including
disability review