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

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