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  • Stimulus Bill Abolishes Welfare Reform

    August 22, 1996 Surrounded by bipartisan members of Congress, Governors, administrative officials and former welfare recipients, President Bill Clinton signs welfare reform legislation Thursday at the White House. Known as the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the bill ends 60 years of guaranteed monetary assistance to the poor. The three former welfare recipients are (from left, all women, standing around the President): Lillie Harden from Arkansas, Penelope Howard from Deleware and Janet Ferrel from West Virginia.

    From the beginning we’ve warned you that President Barack Obama’s Trillion Dollar Debt Plan will not stimulate the economy, but will instead permanently expand the size and power of the welfare state. There is perhaps no better example of this than the provisions in the bill which abolish the successful welfare reforms passed on a true bipartisan basis by President Bill Clinton in 1996. Heritage senior research fellow Robert Rector has the gory details:

    Under the old AFDC program, states were given more federal funds if their welfare caseloads were increased, and funds were cut whenever the state caseload fell. This structure created a strong incentive for states to swell the welfare rolls. Prior to reform, one child in seven was receiving AFDC benefits.

    When welfare reform replaced the old AFDC system with TANF, this perverse financial incentive to increase dependence was eliminated. Each state was given a flat funding level that did not vary whether the state increased or decreased its caseload.

    The House and Senate stimulus bills will overturn the fiscal foundation of welfare reform and restore an AFDC-style funding system. For the first time since 1996, the federal government would begin paying states bonuses to increase their welfare caseloads. Indeed, the new welfare system created by the stimulus bills is actually worse than the old AFDC program because it rewards the states more heavily to increase their caseloads. Under the stimulus bills, the federal government will pay 80 percent of cost for each new family that a state enrolls in welfare; this matching rate is far higher than it was under AFDC.

    Posted in Ongoing Priorities [slideshow_deploy]

    8 Responses to Stimulus Bill Abolishes Welfare Reform

    1. Ozzy6900, CT says:

      Of course we need welfare reform – the old system just won't work with the amount of projected recipients! With the years of training the Democrats have inflicted on the People, the mind set out there is simply "The Government owes us!". Just look at the comment in a Yahoo News article about Nadya Suleman, the mother of the recent octuplets.

      "The mother of octuplets born in California last month says she's "not living off taxpayer money," but that she has been receiving about $490 worth of food stamps……."

      People seriously believe that the money is from the Government and not we, the taxpayers. The years of Democrat, Left Wing brainwashing is turning into a virus and the taxpayer is the looser!

    2. Eugene says:

      Can someone tell me the exact amount of money President Obama spent on welfare in the first stimulis package. I heard and I thought read 275 billion dollars? Is this correct?

    3. Pingback: Morning Bell: How Many Trillions Must We Waste on the War on Poverty? | The Foundry: Conservative Policy News.

    4. Pingback: How Many Trillions Must We Waste on the War on Poverty? : USACTION NEWS

    5. Pingback: How Many Trillions Must We Waste on the War on Poverty? | Real News Reporter

    6. Pingback: How Many Trillions Must We Waste on the War on Poverty? | Suffolk County Liberty Report

    7. Sara Van Ormer says:

      We all know that at times a person needs help but would it not be easier to have the person who needs help to WORK for his help? Giving things to people who really need them is one thing but having theses same people always GETTING this HELP is not good for them or this GREAT COUNYRY. I worked 3 part time jobs when I was in COLLEGE and sill was able to go as long as I could. I also borrowed money from UNCLE SAM and paid it all back. It is time to get back any and all MONIES from people who have borrowed money for their education and are now working and are making NO ATTEMPT to start PAYING it back. This includes the WHITE HOUSE PEOPLE and all LAWYERS,DOCTORS,PHD,S and ect. Lets get real with what is going on in OUR GREAT COUNTRY instead of just TALKING about IT.

    8. Linnie says:

      Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point.

      You obviously know what youre talking about, why waste your intelligence on just posting videos to

      your blog when you could be giving us something informative to read?

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