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Welfare Reform Beyond PowerPoint PresentationThe Brookings InstitutionSpring 2002 Session 1Overview and History of Welfare Reform Poverty Rates for Children in the U.S. Have Been Higher than Those for Other Age Groups Two Views of Poverty The poor are victims of their circumstances and do not have opportunities to advance The poor are responsible for their circumstances and do not take advantage of available opportunities The emphasis of antipoverty policy in the U.S. has shifted between these two views The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 emphasizes the second view The Measurement of Poverty The Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who is poor The poverty thresholds do not vary geographically; they are updated annually for inflation but they have not kept pace with rising real incomes In determining who’s poor the Census Bureau counts money income before taxes and does not include non-cash benefits, the EITC, or work-related expenses. The National Academy of Sciences has recommended changes to deal with these and other issues. The thresholds in 2000 were: 1-person under 65 $8,959 3-person family (adult and 2 children) 13,874 4-person family (adult and 3 children) 17,524 Political Background to the 1996 Welfare Reform Legislation Overview of the Aid to Families with Dependent Children Program (AFDC) Established in 1935 as part of the Social Security Act Shared cost program between federal government and states Originally intended primarily for widows, AFDC increasingly served never-married mothers States had discretion primarily over setting income eligibility limits and benefit levels Activity requirements were weak and generally focused on education and training rather than work States were not allowed to time limit beneficiaries Beginning in early 1990s, states increasingly used waivers to try new approaches to reducing welfare dependence
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