Welfare Reform: Information on Changing Labor Market and State Fiscal Conditions.

摘要

With the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), the Congress made sweeping changes to federal policy for needy families. PRWORA ended the Aid to Families with Dependent Children (AFDC) program and created the Welfare reform was initially implemented in a time of economic growth, when there was a strong demand for labor and the fiscal situation of the states was favorable. More recently, the economy has slowed and welfare reform is being implemented in less favorable economic conditions. To obtain information on welfare reform under changing labor market and fiscal conditions, you asked us to determine (1) how labor market conditions have changed in recent years; (2) how cash public assistance caseloads and the employment activities of current and former welfare recipients have changed in recent years; (3) how the fiscal situation of states has changed in recent years; and (4) to what extent states have made changes to their welfare programs as a result of fiscal changes.