What does the 1996 welfare reform law do?
What the 1996 Republican welfare law does: 1. the rate of growth of welfare is being reduced 7 programs are affected by this law: AFDC, Food Stamps, school lunches, ETC, and Foster care are included Old rate of expansion: 6% annual growth New rate of expansion: 4.5% annual growth 2. The law eliminates financial incentives to state governments. In the old system money was awarded to states with increasing caseloads. Now states that if states increase their caseload will have to pay for the surplus by themselves. What this does is give an incentive for states to work toward getting people off welfare. Before this didn’t matter because an increase in welfare recipients was met with more money being awarded. There was no incentive to get those who have been on welfare off. Now states are either work to help get welfare recipients out of poverty or bear extra costs themselves. States have an incentive to actually help people instead of dishing out more money to them. 3. Work requirements Th
