Sunday, October 22, 2017

"20 Years Since Welfare 'Reform'"


"Why has TANF left so many needy families behind? Its advocates argue that it reduces dependency and promotes work. Its critics contend that the time limits and work requirements it imposes are too punitive. Yet a careful look under the hood reveals that both of these claims fail to grasp the fundamental nature of what TANF has become.

To put it plainly, TANF is not really a welfare program at all. Peter Germanis, a conservative expert on welfare policy and former Reagan White House aide,describes it best, as a “fixed and flexible funding stream”—think slush fund—for states, provided by what are known as “block grants.” Yes, some block-grant dollars are used to provide cash aid to struggling families. But three of every four dollars allocated to TANF is directed toward other purposes... 

Built into the very core of TANF are perverse incentives for states to shed families from the welfare rolls. If they do so, they get to keep the money and use it for other things. And outside of what’s spent on cash aid, there is virtually no meaningful oversight on how the rest of the money is spent... 

What states spend astonishingly little on—besides cash assistance—is helping the poor find employment. In 2014, Ohio—which is about at the national average here—allocated only 8 percent of combined federal and state TANF funding to vital “hand-up” activities linking recipients to jobs."


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