From D.C. to Little Rock: Welfare Reform at Mid-term

Following an active period of state welfare reforms, passageof the Temporary Assistance for Needy Families (TANF) programin 1996 gave states great flexibility, set up block-grant financing,and imposed work-related mandates. Under TANF, states increasedtheir work expectations for recipients; improved work incentives;and provided more work supports, such as child care and transportationassistance. Caseloads have dropped sharply, and most formerrecipients are finding work. Caseload declines in most stateshave resulted in substantial funding being available for newand expanded services, including supports for working poor familiesand early-childhood and after-school programs. Most states havebeen slower to develop these programs, but the pace is increasingas policymakers become more secure about TANF's flexibilityand the magnitude of the caseload changes.