HHS REPORTS CONTINUED DECLINE IN WELFARE REFORM CASELOAD

HHS Secretary Tommy G. Thompson today released new caseload statistics that show a continued decline in the number of families receiving temporary assistance nationally under welfare reform during the most recent six-month period for which data are available.

Between September 2000 and March 2001, the number of families nationally receiving assistance under the Temporary Assistance for Needy Families (TANF) program declined 3 percent from about 2.2 million to about 2.1 million. During the same period, the number of individual TANF recipients declined 4.4 percent from more than 5.7 million to fewer than 5.4 million.

Overall there has been a 57 percent decline in the number of people enrolled in TANF since Congress enacted welfare reform in August 1996 - an unprecedented decline in dependency representing nearly 7 million fewer recipients.

"While the caseload numbers are encouraging, the real news is that welfare reform is moving more people into work so that they can support themselves and their families," Secretary Thompson said. "Welfare reform has helped an unprecedented number of people on welfare to become self-supporting."

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 dramatically changed the nation's welfare system into one that provides training and requires transition to work in exchange for time-limited assistance. The legislation contains strong work requirements combined with supports for families moving from welfare to work, including increased child care funding and continued eligibility for medical coverage.

The law created the TANF program, which provides $16.5 billion in federal funds to states each year to provide cash assistance to needy families, support their transition to work and self-sufficiency and promote the formation and maintenance of two-parent families. Congress will consider reauthorization of the TANF program next year.

"Welfare reform already has improved the lives of America's families, but we must work together to build on this progress as we prepare to reauthorize the legislation," said Wade F. Horn, Ph.D., HHS assistant secretary for children and families. "We especially need to pay attention to what works at the state and local level as we move into the next phase of reform."

The TANF caseload numbers, including state-specific numbers, will be available later today at http://www.acf.dhhs.gov/news/tables.htm. HHS' 2001 Annual Report to Congress on Indicators of Welfare Dependence is available at http://aspe.hhs.gov/hsp/indicators01/.

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