Off Welfare and on to Work
Squeezed by the recession, states are under great pressure to cut spending, and many have responded in part by reducing or proposing to reduce welfare benefits. This movement threatens to obscure the nascent effort, just entering its third year, to help mothers break their complete dependency on welfare through work. It is an effort that could also save money, though that isnÛªt its major purpose.</br></br>Because welfare developments donÛªt get much public attention, many people may have missed or forgotten the striking series of changes in federal policy designed to reduce welfare rolls by encouraging work.</br></br>The seminal legislation was the bipartisan Family Support Act of 1988. This legislation provided states with several billion dollars over five years to pay for education, training, child care and other services intended to help mothers leave welfare for workÛÓincluding one year of health benefits and day care after leaving welfare.</br></br>Congress and Presidents Reagan and Bush have collaborated on several other pieces of legislation designed to help promote work. The 1986 tax reform bill eliminated or dramatically reduced federal taxes for low-income workers. The bill also expanded the Earned Income Tax Credit, an earnings subsidy paid by the federal government to low-income working families with children. In 1990 Congress and President Bush expanded the EITC even more. By 1994, many working families will be eligible for up to $2,400 in cash wage supplements.</br></br>We have also strengthened the nationÛªs child support enforcement program, expanded federal support for day care and broadened government support for health insurance, all on a bipartisan basis.