Since the beginning of the War on Poverty, government has spent
vast sums on welfare or aid to the poor; however, the aggregate
cost of this assistance is largely unknown because the spending
is fragmented into myriad programs. As this report shows, means-
tested welfare or aid to poor and low-income persons is now the
third most expensive government function. Its cost ranks below
support for the elderly through Social Security and Medicare and
below government expenditures on education, but above spending
on national defense. Prior to the current recession, one dollar
in seven in total federal, state, and local government spending
went to means-tested Means-tested welfare spending or aid to the
poor consists of government programs that provide assistance
deliberately and exclusively to poor and lower-income people. By
contrast, non-welfare programs provide benefits and services for
the general population. For example, food stamps, public
housing, Medicaid, and Temporary Assistance for Needy Families
are means