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  • House Bill Would Give States $2.5 Billion to Increase Welfare Rolls

    Speaker Nancy Pelosi (D-CA) is attempting this week to schedule a vote in the U.S. House of Representatives on a measure that would extend expiring tax breaks. But the “American Jobs and Closing Tax Loopholes Act of 2010” (H.R. 4213) would shut the door on the important success of welfare reform. That’s because the legislation includes is a one-year extension of the so-called “TANF Emergency Contingency Fund” with an additional $2.5 billion in spending. This fund was originally created as part of the 2009 Stimulus package and directly undermines the historic 1996 welfare reform by paying states “bonus” money for increasing the size of their welfare caseloads.

    The 1996 welfare reform fundamentally changed how the old welfare system, known as Aid to Families with Dependent Children (AFDC), financed the welfare caseload. AFDC essentially increased the amount of federal money that flowed to states based on the size of their caseloads – the bigger the caseload, the more money they got. Not surprisingly, the size of caseloads ballooned over years costing taxpayers billions more year to year and trapping millions of families into generational poverty.

    Welfare reform transformed the program into the Temporary Assistance for Needy Families (TANF) program. It changed the financing structure into a fixed block grant that did not fluctuate from year to year according to caseload size. In addition, real work requirements were put in place that required able-bodied recipients to engage in work or job preparation activities at least 20-30 hours a week. As a result, over 2.8 million families left the welfare rolls for employment and child poverty shrank by 1.6 million fewer children. Overall caseloads shrunk by more than 60 percent.

    The TANF Emergency Fund extension included in H.R. 4213 directly undermines both the funding structure and work requirements that made welfare reform a success. This Fund originated in the 2009 infamous Stimulus package and cost taxpayers $5 billion. It rewards states with extra money if their welfare caseloads increase in size. Further, only 16 percent of expenditures according to the Department of Health and Human Services have gone toward subsidized employment activities and 84 percent has been given out as basic cash assistance or short-term cash assistance. The bill under consideration this week would add another $2.5 billion to the Fund and extend it for another year.

    Through this policy change, the Obama Administration and Congress would put more families on welfare and decrease the importance of work and self-sufficiency. Not only is this costly to the taxpayer, but the social cost of trapping more people in dependency on government is devastating.

    Posted in Culture [slideshow_deploy]

    8 Responses to House Bill Would Give States $2.5 Billion to Increase Welfare Rolls

    1. Billie says:

      House Bill Would Give States $2.5 Billion to Increase Welfare Rolls?

      Governments' admission of oppression and removal of freedom…

    2. djp, Iowa says:

      Pelosi is a "Silver Spooner" trying to make herself feel less guilty for being one of the haves, by giving away the tax payer's money to the have not's. Notice, I didn't say giving away her own money.

    3. Kevin Habib, Glen Bu says:

      How about letting the 2001 and 2003 tax cuts for the the top 1% and top 5% expire? Let's start real talk about hundreds of billions of dollars and not a welfare program that costs 2.5 billion. The tax cuts added nearly 2 trillion to the deficit and you are concerning yourself abotu 2 billion?!?!

    4. greg says:

      kevin, where do you get your information. check out who really pays taxes and who receives tax benefits from those who pay taxes on the irs website. stop listening to the left leaning mainstream media and their propaganda and get your facts straight. 47% of americans actually paid taxes last year and the 53% got back all they paid and then some more due to all the credits. personally my wife and i had to pay 12K in taxes and we got nothing back. how is that fair? we are not rich or even one of the 1-5% you are talking about. get a life and get a job.

    5. Tim AZ says:

      This is just another method used by the regime to convince their subjects that they are serving their govt by taking money from their fellow man in exchange for freedom, self respect, and respect for their own creator. They are enticing you to spit in gods face and place your faith in a failed govt. that requires only one thing. Undying servitude for more govt. cheese. Behold the cruelty of liberalism.

    6. Tim AZ says:

      Any State that excepts this forbidden fruit from these purveyors of poverty deserves the consequences of their actions. Namely surrendering any claim to self governance at the state and local level. All for a few dollars more.

    7. Lynn Bryant DeSpain says:

      How about all the remaining States just join Arizona and enforce the Federal law against illegal immigration, upheld by the Supreme Court in 2005, and solve the entire Welfare Program and have money left over?

      More jobs available too.

      Less crime.

      Lower insurance cost, auto, home, health.

      More stable banking and lending markets, without Fannie mae and Freddie Mac being forced to accept non qualifiying Illegal's loan applications without background checks.

      Safe neighborhoods. Gee, the list goes on and keeps getting better! Are there any down sides? I thought not.

    8. Pingback: Morning Bell: This Congress Has No Shame | Step Down Obama

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