Child Welfare Reform Legislation

A brief review of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (H.R. 3734), Public Law 104-193, follows. The new welfare law makes fundamental structural changes in the Aid to Families with Dependent Children (AFDC) program, as well as funding cuts in basic programs for low-income children, families, the elderly, people with disabilities and immigrants. According to the Congressional Budget Office, this law cuts funding for low-income programs by approximately $55 billion over the next six years. Nearly all of the savings will come from reductions in the Food Stamp program, the Supplemental Security Income (SSI) program for the elderly and disabled poor, and assistance to legal immigrants.

Based on conservative assumptions, the welfare bill will push 1.1 million children--and 2.6 million people overall--into poverty. Large numbers of families who are already poor would still become poorer. Specifically, the overall

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Broad policy changes were made to the federal entitlement programs. New federal dollars will be devoted to provide health insurance coverage for an uninsured population, children. Nearly $13 billion in federal spending will be used to restore some coverage for special populations that were eliminated through last year's welfare reform legislation. States will be granted flexibility in administering their Medicaid programs, and an opening now exists for increased privatization of Medicare through new coverage options for beneficiaries. The new law commits new federal spending of $24 billion over five years for children's health, with a total commitment to expend over $40 billion for the initiative over the next 10 years. States must have an approved plan, which is submitted to the Department of Health and Human Services (HHS). Funding is available beginning October 1, 1997. Ninety percent of a state's allocation must be spent on health insurance, either through Medicaid or a new state program. Up to 10 percent can be spent on a combination of administrative costs, outreach programs, direct health care services for children, and other children's health initiatives. In the area of eligibility, low-income children who are y
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Approximate Word count = 2009
Approximate Pages = 8 (250 words per page)

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