SECTION 7. AID TO FAMILIES WITH DEPENDENT CHILDREN AND TEMPORARY
ASSISTANCE FOR NEEDY FAMILIES (TITLE IV-A)
CONTENTS
Overview
Aid to Families With Dependent Children
Basic Federal Rules
Brief History
Interaction of AFDC With Other Benefit Programs
Participation in Multiple Means-Tested Programs
National AFDC Data: Expenditures, Benefits, and Caseloads,
Fiscal Years 1970-96
State AFDC Data: Benefits, Expenditures, and Caseloads
Financing of AFDC
National Data: Characteristics of AFDC Recipients
State Data: Characteristics of AFDC Recipients
Waivers from Federal AFDC Law Section 1115 Demonstration
Projects
AFDC Quality Control
The Job Opportunities and Basic Skills Training Program (JOBS)
Purpose and Administration
Employability Plan and Case Management
JOBS Activities
Exemptions, Child Care, and Participation Requirements
Targeting of JOBS Funds
Funding of JOBS and Supportive Services
Indian Tribes and JOBS
Welfare-to-Work Efforts: Some Assessments
Emergency Assistance
Temporary Assistance for Needy Families (TANF)
Basic Outline of Program
TANF Funding
TANF for Indians
State TANF Plans
State TANF Data
Welfare-to-Work Grants
Funding of Welfare-to-Work Grants
Use of Welfare-to-Work Funds
Welfare Dynamics
Duration on Welfare
Exits and Returns to Welfare
Intergenerational Patterns of Welfare Use
Adolescent and Out-of-Wedlock Childbearing and Use of AFDC
Trends Over Time
First Births to Unmarried Women
Links to AFDC Use
Legislative History
References
OVERVIEW
Aid to Families with Dependent Children (AFDC),
established in the depression year of 1935 as a matching grant
program to enable States to aid needy children without fathers
at home, was repealed 61 years later by Public Law 104-193.
Effective July 1, 1997 (earlier in most States, by their
choice) AFDC was replaced by a block grant to States for
Temporary Assistance for Needy Families (TANF). The new block
grant also replaced two AFDC-related programs: Job
Opportunities and Basic Skills Training (JOBS), which provided
education, work, and training for AFDC adult recipients, and
Emergency Assistance for Needy Families (EA).
This section describes the programs in this order: AFDC,
JOBS, EA, and TANF. It concludes with discussions about welfare
dynamics and adolescent and nonmarital childbearing.
In recent years, AFDC law (title IV-A of the Social
Security Act) entitled States to unlimited Federal matching
funds for State-set benefits and their administration, EA, and
child care for AFDC recipients and for former recipients who
worked their way off the program. It offered capped entitlement
funds for JOBS and ``at-risk'' child care, which subsidized
care for families needing it to avert AFDC eligibility. In
contrast, TANF provides a fixed block grant based on recent
Federal funding for the replaced programs ($16.5 billion
annually through fiscal year 2002) plus expanded child care
funding in a new child care block grant. In its peak year,
fiscal year 1994, AFDC served an average of 5 million families,
more than 1 in every 7 U.S. families with children. The fiscal
year 1994 AFDC Program cost $14.2 billion in Federal funds,
slightly less than 1 percent of the Federal budget, plus $11.9
billion in State and local funds.
TANF greatly enlarges State discretion in operating family
welfare, and it ends the entitlement of individual families to
aid. Under TANF, States decide what categories of needy
families to help (AFDC law defined eligible classes and
required States to aid families in these classes if their
income was below State-set limits). Under TANF, States decide
whether to adopt financial rewards and penalties to induce work
and other desired behavior. Also, States set asset limits (AFDC
law imposed an outer limit) and continue to set benefit levels.
Attached to the TANF Block Grant are some Federal conditions.
For instance, to receive full grants States must achieve
minimum work participation rates and spend a certain sum of
their own funds on behalf of eligible families (``maintenance-
of-effort'' rule). They must require recipients to work in
order to continue receiving aid after, at most, 24 months of
benefits. TANF also contains prohibitions. For example, States
may not use TANF funds for a family with a member who already
received 60 months of TANF aid as an adult. Table 7-1
summarizes some major differences between old and new cash
welfare programs for families with children.
TABLE 7-1.--SOME KEY DIFFERENCES: AFDC/EA/JOBS AND TANF
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AFDC/EA/JOBS (old law) TANF (new law)
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Federal funding Unlimited for AFDC and EA. Capped entitlement Fixed grant, plus extras (for
for JOBS. (Federal share of AFDC and JOBS population growth/low Federal
costs varied inversely with State per capita spending per poor person, loan
income.) funds, contingency funds,
bonuses for performance and
reducing out-of-wedlock births),
and (2 years only) welfare-to-
work grants.
State funding Matching required for each Federal dollar. States must spend 75 percent of
``historic'' level (100 percent
for contingency funds) and must
provide matching for contingency
funds.
Categories eligible Children with one parent or with an Set by State.
incapacitated or unemployed second parent.
Income limits Set by State. Set by State.
Benefit levels Set by State. Set by State.
Entitlement States required to aid all families eligible TANF expressly denies entitlement
under State income standards. to individuals.
Work requirement JOBS Program had participation requirements, By 2002, States must have 50
but participation did not require work. percent of their caseload in
specified work activities.
Exemptions from work Parents (chiefly mothers) with child under age None, but States may exempt
requirement 3 (under age 1, at State option). single parents caring for child
under 1.
Work trigger None. Work (as defined by State)
required after maximum of 2
years of benefits.
Time limit for benefits None. 5-year limit (20 percent hardship
exceptions allowed).
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AID TO FAMILIES WITH DEPENDENT CHILDREN
Basic Federal Rules
AFDC payments were allowed for needy children who were
deprived of parental support or care because their father or
mother was absent from the home continuously, incapacitated,
deceased, or unemployed. Payments also were permitted for the
child's needy caretaker relative (usually the mother), for
another person in the home deemed essential to the child's
well-being, and for a pregnant woman in her third trimester of
pregnancy.
Eligibility for AFDC ended on a child's 18th birthday, or
at State option upon a child's 19th birthday if the child were
a full-time student in a secondary or technical school and
might reasonably be expected to complete the program before
reaching age 19. Ineligible for AFDC were illegal aliens,
strikers, recipients of Supplemental Security Income (SSI), and
children for whom foster care payments were made.
States were allowed to deny AFDC for the child of an
unmarried parent under age 18 (and that parent) unless they
lived in an adult-supervised supportive arrangement. States
also could treat minor mothers as ``adult caretakers'' of their
own children and permit them to head their own AFDC household.
Federal law set outer income and resource limits for AFDC
eligibility and required that all income received by an AFDC
recipient or applicant be counted against the AFDC grant except
income explicitly excluded by definition or deduction. The law
required States to count as available to the child part of the
income of a stepparent in the home and (if the child's own
mother were a minor) part of the income of a grandparent living
in the home. Under court rulings, States were required to
provide aid to all persons who were in classes eligible under
Federal law and whose income and resources were within State-
set limits. Thus, an individual's entitlement to AFDC varied
from State to State.
As a condition of AFDC eligibility, a parent was required
to assign child support and spousal support rights to the State
and to cooperate in establishing paternity of a child,
obtaining child support payments, and identifying a third party
who might be liable to pay for medical services for the child.
As another condition of AFDC eligibility, Federal law required
most able-bodied parents to participate in the JOBS Program
unless their youngest child was under 3 years old, and it
allowed States to mandate JOBS participation of parents with
children as young as 1. At the same time, States were required
to guarantee care for an AFDC child under age 13 if it were
needed to permit the parent to work, train, or attend school.
Federal funds paid from 50 to 78 percent of fiscal year
1996 AFDC benefit costs in a State (55 percent on average) and
50 percent of administrative costs in all States. AFDC was a
voluntary program for States and was operated in all 50 States,
the District of Columbia, Guam, Puerto Rico, and the Virgin
Islands. Although American Samoa was authorized to participate,
it did not.
To operate AFDC, States needed approval by the Department
of Health and Human Services (DHHS) of written AFDC plans. They
were required to operate the program statewide and apply their
need standards uniformly within the State or locality to all
families in similar circumstances. States were permitted to
adopt separate urban and rural benefit schedules and to vary
benefits by region, with differences usually reflecting shelter
costs. The law required State plans to provide an opportunity
for a fair hearing for those whose claims were denied. States
were at liberty to pay as much in benefits as they chose, or as
little, with one exception. Medicaid law forbade them to reduce
AFDC ``payment levels'' below those in effect on May 1, 1988
(or, if higher, those effective on July 1, 1987).
After October 1, 1990, State AFDC Programs were required
to offer AFDC to children in two-parent families who were needy
because of the unemployment of one of their parents (AFDC-UP).
Eligibility for AFDC-UP was limited to families whose principal
wage earner was unemployed (working fewer than 100 hours
monthly) but who had worked at least 6 of the last 13 quarters,
or engaged in school or training for 4 of these quarters.
States were required to provide Medicaid to families
enrolled in AFDC and to provide transitional Medicaid benefits
of up to 12 months for those who lost AFDC eligibility as a
result of increased hours of, or increased income from,
employment (these provisions apply also to the new TANF
Program). States also were required to provide subsidized child
care for up to 12 months to families who lost AFDC eligibility
as a result of employment.
Table 7-2 summarizes enrollment and spending trends during
AFDC's 61-year history. When the program began, benefits were
allowed only for children (not their parents), and it was
called Aid to Dependent Children. In the early years enrollment
was less than 1 percent of the U.S. population; in the peak
year (fiscal year 1994) it reached 5.5 percent of the
population. Program growth was most rapid in the 1960s and
1970s. This was the period of Great Society initiatives,
including establishment of Medicaid, which increased the value
of AFDC. The proportion of U.S. families with children who were
enrolled in AFDC more than doubled from fiscal year 1960 to
fiscal year 1970 (from 3.1 to 6.6 percent) and rose by three-
fourths again in the next decade (to 11.5 percent). Adjusted
for price inflation (expressed in fiscal year 1996 dollars),
benefit expenditures climbed from $5.4 billion in fiscal year
1960 to $16.8 billion in fiscal year 1970. Average AFDC
benefits, again in fiscal year 1996 dollars, peaked at $734
monthly in fiscal year 1970. Thereafter, food stamps, funded
100 percent by Federal dollars, became a nationwide income
supplement for AFDC families.
Brief History
Purpose
Federal law gave three purposes of AFDC: to encourage the
care of needy children in their own homes (original 1935
purpose), to strengthen family life (added in 1956), and to
promote family self-support (1956).
Optional coverage
Initial eligibility was limited to needy children (under
age 16 and with only one able-bodied parent at home). Congress
later allowed States to aid these other persons with AFDC
funds:
--the needy mother or other caretaker relative, effective
in 1950;
--child of an unemployed parent and that parent (AFDC-
Unemployed Parent), effective in 1961;
--second parent in a family with an incapacitated or
unemployed parent, effective in 1962;
--``any other individual'' in the home deemed essential to
the child, known as the ``essential person''
option, effective in 1968; and
--an unborn child, in last trimester of mother's pregnancy,
effective in 1981.
TABLE 7-2.--AFDC SUMMARY DATA, SELECTED FISCAL YEARS, 1936-96
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Measure 1936 1940 1950 1960 1970 1980 1990 1994 1995 1996
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Benefit expenditures (millions of dollars) \1\................ 23 123 520 1,021 4,082 11,540 18,539 22,797 22,032 20,411
In 1996 dollars \2\....................................... 260 1,373 3,419 5,407 16,803 22,445 22,414 24,082 22,643 20,411
Federal share (percent).................................. 7 33 44 60 54 54 55 55 55 54
Administrative cost (millions of dollars) \3\................. 0.4 9.5 40 109 881 1,479 2,661 3,301 3,521 3,266
In 1996 dollars \2\....................................... 4.5 106 263 577 3,627 2,877 3,217 3,487 3,619 3,266
Federal share (percent)................................... 34 40 50 50 65 51 51 51 50 50
Average monthly no. (thousands) \4\
Families.................................................. 162 372 651 803 1,909 3,574 3,974 5,046 4,869 4,553
With unemployed parents............................... (\6\) (\6\) (\6\) (\6\) 78 141 204 363 335 302
Recipients................................................ 546 1,222 2,233 3,073 7,429 10,497 11,460 14,226 13,619 12,649
Children.................................................. 404 895 1,661 2,370 5,494 7,220 7,755 9,590 9,275 8,673
Average AFDC family size \5\.................................. 3.37 3.28 3.43 3.83 3.89 2.94 2.88 2.82 2.80 2.78
Average monthly family benefit................................ 28 28 67 106 178 269 389 376 377 374
In 1996 dollars \2\....................................... 322 312 440 559 734 523 470 397 387 374
AFDC enrollment, as percent of
U.S. families with children............................... NA 2.1 3.2 3.1 6.6 11.5 12.3 14.8 14.2 13.3
Total population.......................................... 0.4 0.9 1.5 1.7 3.7 4.6 4.6 5.5 5.2 4.8
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\1\ Benefit expenditures for 1936-60 are from U.S. Department of Health and Education (DHEW), Expenditures for Public Assistance Payments and for
Administrative Costs, by Program and Source of Funds, Fiscal Years 1936-70 NCSS Report F-5; 1936 data are for 5 months only. Later data are from table
7-3, prepared by the U.S. Department of Health and Human Services (DHHS), but unlike that table, exclude foster care payments made in 1980.
\2\ The Consumer Price Index (CPI-U) for all Urban Consumers was used to adjust current dollars for inflation.
\3\ For years before 1980, administrative costs include some expenditures for services.
\4\ Enrollment data for 1936-60 are December numbers from the 1970 Social Security Annual Statistical Supplement (table 136). For later years data are
fiscal year monthly averages from table 7-5, prepared by DHHS, but, unlike that table, exclude foster care recipients in 1980.
\5\ Calculated by dividing total recipients by the number of families. This understates actual family size for 1936-50 because the mother or other care
giver was not included as a recipient until after fiscal year 1950.
\6\ Program did not exist.
NA--Not available.
Source: Congressional Research Service.
Mandatory coverage
Beginning in 1984, Congress required States to aid certain
parents:
--second parent in families with an incapacitated or
unemployed parent, effective in 1984 (previously,
some States did not cover the spouse of an
incapacitated or unemployed parent);
--families of unemployed parents, effective in October
1990. (States that previously did not offer AFDC-UP
were allowed to limit it to 6 months yearly.)
Age of eligible child
Congress gave States the option of aiding children older
than 15 as follows: children aged 16 and 17 if regularly
attending school, effective in 1940; students aged 18-20 in
high school or a course of vocational or technical training,
1964; and students aged 18-20 in college or university, 1965.
However, in 1981, Congress ended a child's eligibility on his
18th birthday or at State option, if he were still in high
school, on his 19th birthday.
Treatment of income of family members
In 1981 Congress required States to treat a portion of the
income of an AFDC child's stepparent (living in the same home)
as available to the child. Congress required that any parent
and brother or sister of a needy child who lived in his home
(except for SSI recipients) must be included in the AFDC
assistance unit of the child and, thus, share income with the
family, effective in 1984.
Name of program
Effective in 1962, Congress changed the name of the
program from ``Aid to Dependent Children'' to ``Aid to Families
with Dependent Children.''
Social services
In 1962, Congress increased the Federal reimbursement rate
for social services to AFDC families and opened up eligibility
for services to former and potential AFDC families. The
matching rate was raised to 75 percent (previously services
were reimbursed at a 50 percent rate, along with other
administrative costs). Table 7-2 shows the resulting rise in
the overall Federal share of AFDC administrative costs in
fiscal year 1970. Later, in 1975, Congress replaced open-ended
funding for social services with a block grant in a new title
XX of the Social Security Act. This removed social services
from the AFDC administrative cost account.
Foster care
Effective in 1962, Congress authorized payments for foster
care for AFDC-eligible children. This policy responded to a
ruling by the Secretary of Health, Education, and Welfare (now
DHHS) that States would no longer be permitted to deny AFDC to
a needy child on the basis of ``unsuitable'' home conditions;
States were to continue aid to the child in the home while
making arrangements for the child to live elsewhere. In 1980,
Congress established a program of adoption assistance and
foster care for welfare children in a new part IV-E of the
Social Security Act (see section 11).
Work requirements
Seeking to halt the rise in welfare rolls and responding to
the growing numbers of working mothers, Congress ordered
States, effective in 1968, to set up a work or training program
called Work Incentive (WIN) for ``appropriate'' AFDC
recipients. In 1971, Congress required WIN assignment of
mothers with no child below age 6. The Family Support Act of
1988 replaced WIN with the Job Opportunities and Basic Skills
Training Program (JOBS) in a new part IV-F of the Social
Security Act. This legislation required States, to the extent
resources allowed, to engage most mothers with no child below
age 3 in education, work, or training under JOBS.
Work rewards
Beginning in 1969, States were required to permit an AFDC
child who was a student to retain all part-time earnings
without reducing the family's benefit check. When setting up
WIN to take effect in 1968, Congress offered permanent
disregard of a portion of earnings as a financial reward for
earnings of AFDC adults. Previously only work expenses were
deducted from adult earnings counted against the AFDC check in
most States. The new law required States also to disregard the
first $30 earned monthly and one-third of remaining earnings.
The result was that working recipients would not lose AFDC
eligibility until gross earnings were 150 percent of their
basic benefit plus $30 monthly plus 150 percent of expenses. In
1981, Congress repealed the permanent work incentive bonus
(disregard of one-third of every extra dollar), confining it to
the first 4 months of a job. After 4 months of a job, States
were to disregard a standard allowance only plus actual child
care expenses, up to a ceiling. For instance, after 12 months
on a job, a standard sum of $75 monthly (later raised to $90)
was to be disregarded. In deciding eligibility of applicants,
States were to count all earnings except the standard allowance
and child care costs. In 1981, Congress also imposed a Federal
gross income limit (150 percent of the need standard, later
raised to 185 percent). In 1988, Congress required States not
to count as income against the AFDC grant any earned income
credit (EIC) payments received by an AFDC working parent and to
disregard these payments as a resource for 2 months.
Welfare-to-work programs
In 1981, Congress gave States authority to design and test
their own ``welfare-to-work'' WIN Programs. Further, it
authorized job search, work relief (Community Work Experience
Programs--CWEP) and subsidization of a job with the AFDC
benefit (work supplementation). The Family Support Act of 1988,
which established the JOBS Program, greatly enlarged funding
for welfare-to-work efforts; it also required all States, at
least for part of the year, to offer aid to families of
unemployed parents.
Child support enforcement
When the Child Support Enforcement Program was enacted in
1975 as a new part IV-D of the Social Security Act, Congress
required AFDC applicants and recipients to assign child support
or spousal support rights to the State and to cooperate with
the State in establishing paternity and in obtaining support
payments. In 1984 Congress required States to ``pass through''
to the AFDC family up to $50 monthly collected in child
support, adding it to the family's unreduced AFDC benefit.
Funding
In the 1935 act, Congress set the Federal share of AFDC
payments at 33 percent, up to individual payment maximums of
$18 for the first child and $12 for additional children. Thus,
for the first child, the maximum Federal share was $6.
Subsequently matching maximums were increased and based on
average spending per recipient. In 1956, variable matching
rates were established, providing more generous Federal
reimbursement for States with lower per capita income. But
these variable rates applied only to average expenditures, up
to a ceiling, above specified amounts per recipient. In 1965,
when Medicaid was established, Federal matching for every AFDC
dollar became available. States that implemented Medicaid were
allowed to use its open-ended matching formula for total AFDC
benefits as well. Medicaid matching rates, inversely related to
State per capita income, have a statutory floor of 50 percent
and a ceiling of 83 percent. In fiscal year 1997 the actual top
rate is 77.09 percent, in Mississippi. A special matching rate
of 75 percent and funding ceilings applied to AFDC in Guam,
Puerto Rico, and the Virgin Islands.
Waivers from AFDC law
Section 1115 of the Social Security Act, established in
1962, allowed waiver of specified parts of AFDC law (namely,
provisions setting forth requirements for State plans) in order
to enable a State to carry out a project that the Secretary
judged likely to promote the objectives of AFDC. Presidents
Reagan, Bush, and Clinton all promoted use of waivers for State
experimentation. The Reagan administration established an
interagency low-income opportunity board to promote and
facilitate waivers; the Clinton administration approved waivers
from more than 40 States, many of them for statewide reforms,
before passage on August 22, 1996 of the law repealing AFDC.
Interaction of AFDC With Other Benefit Programs
Medicaid
States were required to provide Medicaid to AFDC recipients
and to offer 12 months of transitional medical coverage to
those who lost AFDC eligibility because of earnings. During the
second 6 months of transitional coverage, States could limit
the scope of benefits; they also could impose a monthly premium
on families whose income, net of necessary child care expenses,
exceeded 100 percent of the Federal income poverty guidelines.
The monthly premium could not exceed 3 percent of the family's
gross income. States also were required to provide Medicaid
coverage to all members of AFDC-UP families during months when
they were not paid cash benefits because of a State-imposed
time limit (described above under Brief History). States were
permitted to offer Medicaid to ``medically needy'' families
whose income was above AFDC limits but not more than one-third
above the maximum AFDC payment for a family of their size.
(``Medically needy'' income limits for aged and disabled
persons also were based on 133\1/3\ percent of AFDC maximum
payment levels for their size of ``family.'')
Food stamps
All AFDC families were income-eligible for food stamps
unless they lived in a larger household, and more than 85
percent of AFDC families usually received food stamps. The Food
Stamp Program treated AFDC as countable cash income. For every
extra dollar of AFDC income, food stamps were reduced by about
30 cents; at the same time, when AFDC payments declined, food
stamps were increased by about 30 cents per lost AFDC dollar.
Thus, if an AFDC recipient were penalized by one dollar for
violating a program rule, food stamps reduced the net loss to
70 cents. The interaction between AFDC and the Food Stamp
Program had important financial implications for States. If a
State wanted to increase the income of its AFDC recipients, it
had to increase AFDC by $1.43 to obtain an effective $1
increase in the recipient's total income ($1.00/0.7 = $1.43).
Earned income credit (EIC)
Parents with earnings below specified limits, including
those who leave welfare with a job, are eligible for a cash
supplement from the U.S. Treasury in the form of an earned
income credit (EIC). For tax year 1997, the maximum credit for
a tax filer with one child is $2,210. For two or more children
the maximum credit is $3,656 ($305 monthly rate), received for
earnings between $9,140 and $11,930. At higher levels credits
are phased out. For families with more than one child, the EIC
ends at adjusted gross income of $29,290. EIC is a refundable
credit; persons with income below the taxation threshold
receive the credit as a direct payment from the U.S. Treasury.
Federal law required that EIC payments be ignored as income
(and for 2 months as a resource) in determining AFDC
eligibility and benefits, but the new welfare law permits
States to decide treatment of EIC by TANF. Food stamps,
Medicaid, Supplemental Security Income (SSI), and some housing
programs must ignore EIC as income.
Child support enforcement
As a condition of AFDC eligibility, families and
applicants were required to assign their rights to child or
spousal support to the State and to cooperate with the State in
establishing the paternity of a child born outside of marriage
and in obtaining support payments. (TANF law prohibits aid for
a person who has not assigned support rights to the State and
sets minimum penalties for failure to cooperate with child
support.) Child support payments made on behalf of an AFDC
child were paid to the child support agency rather than
directly to the family. If the child support collection were
insufficient to disqualify the family from AFDC, the family
received its full monthly AFDC grant plus the first $50 of the
child support payment for that month. The law required States
to disregard this $50 in making AFDC benefit calculations. In
some of the States with need standards above maximum benefits,
additional amounts of child support were disregarded. The
remainder of the monthly child support payment was distributed
to reimburse the State and Federal Governments in proportion to
their assistance to the family. If the family's income,
including the child support payment, were sufficient to make
the family ineligible for AFDC, future child support payments
were made by the noncustodial parent to the family, usually
through an intermediary such as the local child support agency
or office of the court clerk.
Social Security
In AFDC, Social Security benefits were treated as unearned
income; thus, AFDC benefits were reduced by $1 for each dollar
of Social Security benefits. Under 1984 law, Social Security
survivor benefits received by one AFDC child were counted as
income available to other family members.
Supplemental Security Income (SSI)
The SSI recipient (whether a child or an adult) was not
regarded as a part of the AFDC unit. Thus, his needs could not
be taken into account in determining the AFDC benefit level.
Nor could any of his income or resources (including non-SSI
income) be counted as available to the AFDC family.
Interaction example
Table 7-3 and chart 7-1 illustrate the interaction of the
old AFDC Program with food stamps, Medicaid, and the earned
income credit (EIC) for a mother with two children at various
earning levels, as of January 1997. The example assumes the
family lives in Pennsylvania, which still was operating AFDC at
the start of 1997. Calculations are made after the mother has
been working for 4 months and has lost the disregard of one-
third of ``residual'' earnings, those remaining after
subtraction of a $120 standard allowance.
Other benefit programs
AFDC enrollment qualified children for free school meals
(if their school had a meal program). Mothers enrolled in AFDC
automatically met income standards for benefits from the
Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC). AFDC recipients also were eligible for help
from the Job Training Partnership Act (JTPA). States could
grant automatic eligibility for the Low-Income Home Energy
Assistance Program (LIHEAP) to AFDC families. However, not all
AFDC families received benefits from these programs (see tables
15-1 through 15-3). Some AFDC families received housing
subsidies (which reduce the family's rent to 30 percent of
countable income). Thus, if a family's AFDC benefit rose (or
fell), its public housing or section 8
TABLE 7-3.--EARNINGS AND BENEFITS FOR A MOTHER OF TWO CHILDREN WITH DAY CARE EXPENSES AFTER 4 MONTHS ON JOB, JANUARY 1997--(PENNSYLVANIA)
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Taxes
Food ----------------------------------------- Work ``Disposable''
Earnings EIC AFDC \1\ stamps \2\ Medicaid Social Federal expenses \4\ income \5\
Security income \3\ State income
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0............................ 0 $5,052 $2,746 Yes............. 0 0 0 0 $1,798
$2,000....................... $800 4,892 2,434 Yes............. $153 0 0 $600 9,373
4,000........................ 1,200 3,292 2,554 Yes............. 306 0 0 1,200 9,540
5,000........................ 2,000 2,492 2,614 Yes............. 383 0 0 1,500 10,223
6,000........................ 2,400 1,692 2,674 Yes............. 459 0 0 1,800 10,507
7,000........................ 2,800 892 2,734 Yes............. 536 0 0 2,100 10,790
8,000........................ 3,200 0 2,822 Yes \6\......... 612 0 0 2,400 11,010
9,000........................ 3,600 0 2,642 No \7\.......... 689 0 0 2,700 11,853
10,000....................... 3,656 0 2,462 No.............. 765 0 0 3,000 12,353
12,000....................... 3,641 0 2,102 No.............. 912 0 0 3,600 13,231
15,000....................... 3,009 0 1,562 No.............. 1,148 0 $420 4,200 13,803
20,000....................... 1,954 0 0 No.............. 1,530 0 560 5,200 14,664
30,000....................... 0 0 0 No.............. 2,295 $1,560 840 5,400 19,905
50,000....................... 0 0 0 No.............. 3,825 4,944 1,400 5,400 43,431
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Assumes these deductions: $120 monthly standard allowance (which would drop to $90 after 1 year on the job) and child care costs equal to 20 percent
of earnings, up to maximum of $350 for two children.
\2\ Assumes these deductions: 20 percent of earnings, $134 monthly standard deduction and child care costs equal to 20 percent of wages, up to maximum
of $320 for two children. (If family also received the maximum shelter deduction, food stamp benefits would be $75 higher monthly.)
\3\ Head of household rates for 1997. The dependent care tax credit reduces tax liability at earnings of $15,000 and above.
\4\ Assumed to equal 10 percent of earnings up to maximum of $100 monthly, plus child care costs equal to 20 percent of earnings up to a maximum of $350
for two children.
\5\ In addition, the benefits from Medicaid could be added, but are not, since the extent to which they increase disposable income is uncertain.
\6\ Family would qualify for Medicaid for 12 months after leaving cash welfare. State must offer Medicaid to all children up to age 6 whose family
income is not above 133 percent of the Federal poverty guideline (ceiling of $17,769 for a family of three in 1997) and to children over age 6 born
after September 30, 1983 (up to age 13\1/3\ in January 1997) whose family income is below the poverty guideline ($13,330 for a family of three).
\7\ After losing her Medicaid transitional benefits, to regain eligibility mother must spend down on medical expenses to State's medically needy income
limit ($5,604 for a family of three in September 1996).
Source: Congressional Research Service.
housing subsidy generally declined (or rose) by 30 cents per
dollar of the AFDC change. Although the law permitted AFDC
State programs to count a family's housing subsidy as income to
the extent that it duplicated the amount for housing in the
AFDC maximum payment schedule, all but four States ignored
housing subsidies (October 1990 data). If the AFDC grant
included a sum designated for actual housing costs, the family
in subsidized housing was required by law to pay that amount as
rent even if it exceeded 30 percent of countable income.
CHART 7-1. DISPOSABLE INCOME AT VARIOUS WAGE LEVELS, MOTHER OF THREE,
PENNSYLVANIA, JANUARY 1997
Note: ``Net wages'' equal gross earnings minus taxes and
assumed work expenses, shown in table 7-3. Food stamps, AFDC,
and the dependent care tax credit all take account of child
care costs.
Source: Congressional Research Service.
Participation in Multiple Means-Tested Programs
In 1995, according to unpublished data from the Current
Population Survey conducted by the U.S. Bureau of the Census
(1996a), 4.5 million households included a member who received
AFDC (or State/local general assistance (GA)). These cash
welfare benefits averaged $3,935 per household ($328 monthly).
The annual value of noncash needs-tested benefits received by
members of some of these households were:
--Food stamps, average household value $2,306 (received by
82.6 percent of the AFDC/GA households);
--Free or reduced-price school lunches, average value $622
(54.4 percent of the households);
--Housing assistance, average value $2,650 (28.6 percent of
the households);
--Supplemental Security Income (SSI) cash aid, average
household value $5,380 (15.4 percent of the
households); and
--Medicaid, average ``fungible'' value $2,057 (97.5 percent
of the households). The Census Bureau calculates
the fungible value of Medicaid by counting Medicaid
benefits to the extent that they free up resources
that could have been spent on medical care.
The Census Bureau (1996b) also reports (unpublished table
based on the Current Population Survey) that in 1995, 71.1
million persons, 27 percent of the population, lived in
households in which a member received means-tested cash aid
(excluding EIC payments) or noncash aid. By form of aid, they
numbered: cash welfare (AFDC, GA, or SSI) 27.2 million persons,
10.3 percent of the population; food stamps, 28.0 million
persons, 10.6 percent; Medicaid, 47.2 million persons, 17.9
percent; public or subsidized housing, 11.7 million persons,
4.5 percent.
National AFDC Data: Expenditures, Benefits, and Caseloads, Fiscal Years
1970-96
This section presents a statistical picture of AFDC in its
last 27 years, from fiscal year 1970 to fiscal year 1996. In
this period total expenditures for benefits rose by 400 percent
(table 7-4), but more than three-fourths of this increase was
caused by price inflation. In constant value (fiscal year 1996)
dollars, benefit spending rose by 21 percent (table 7-2).
Administrative costs rose by less than the inflation rate and
declined as a share of total program costs--from 18 percent in
fiscal year 1970 to 14 percent in fiscal year 1996 (and were
relatively lower in the 1980s). Part of the decline represents
a change in composition of administrative costs; until fiscal
year 1976 they included spending for social services.
The relative cost of aid for unemployed parent families
versus single-parent families is shown in table 7-5. In fiscal
year 1970, when the two-parent program was optional, 5.7
percent of benefits were paid on behalf of unemployed parent
families; in fiscal year 1996 when the program was mandatory,
9.7 percent. This table also shows the rise in child support
collections used to reimburse AFDC benefit payments. In fiscal
year 1976, the first year of the Child Support Enforcement
Program, these collections represented 3.1 percent of Federal-
State benefit payments; in fiscal year 1996, 11.1 percent.
Table 7-6 shows that the average monthly number of AFDC
families more than doubled from fiscal year 1970 to fiscal year
1990 and reached an all-time peak of 5 million in fiscal year
1994. As a share of all U.S. families with children under age
18 (table 7-2), AFDC families climbed from 6.6 percent in
fiscal year 1970 to a record high of 14.8 percent in fiscal
year 1994. In the last decade, AFDC monthly benefits averaged
$378 per family, $132 per recipient. In current dollars, family
benefits set record highs of $389 in fiscal years 1990 and
1992, but in constant value (fiscal year 1996) dollars, they
peaked in fiscal year 1970 at $734 (table 7-7). The maximum
AFDC payment for a family of four in the median State (ranked
by size of benefit) fell more than 50 percent in real value
from 1970 to 1996, from $910 to $450 in 1996 dollars. Part of
the decline was offset by the availability of food stamps,
which are indexed for price inflation.
TABLE 7-4.--TOTAL, FEDERAL, AND STATE AFDC EXPENDITURES, FISCAL YEARS 1970-96 \1\
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Federal share State share Total
Fiscal year -----------------------------------------------------------------------------
Benefits Administrative Benefits Administrative Benefits Administrative
----------------------------------------------------------------------------------------------------------------
1970.............................. $2,187 \2\ $572 $1,443 $186 $4,082 \2\ $881
1971.............................. 3,008 271 2,469 254 5,477 525
1972.............................. 3,612 240 2,942 241 6,554 NA
1973.............................. 3,865 313 3,138 296 7,003 610
1974.............................. 4,071 379 3,300 362 7,371 740
1975.............................. 4,625 552 3,787 529 8,412 1,082
1976.............................. 5,258 541 4,418 527 9,676 1,069
1977.............................. 5,626 595 4,762 583 10,388 1,177
1978.............................. 5,701 631 4,890 617 10,591 1,248
1979.............................. 5,825 683 4,954 668 10,779 1,350
1980.............................. 6,448 750 5,508 729 11,956 1,479
1981.............................. 6,928 835 5,917 814 12,845 1,648
1982.............................. 6,922 878 5,934 878 12,857 1,756
1983.............................. 7,332 915 6,275 915 13,607 1,830
1984.............................. 7,707 876 6,664 822 14,371 1,698
1985.............................. 7,817 890 6,763 889 14,580 1,779
1986.............................. 8,239 993 6,996 967 15,235 1,960
1987.............................. 8,914 1,081 7,409 1,052 16,323 2,133
1988.............................. 9,125 1,194 7,538 1,159 16,663 2,353
1989.............................. 9,433 1,211 7,807 1,206 17,240 2,417
1990.............................. 10,149 1,358 8,390 1,303 18,539 2,661
1991.............................. 11,165 1,373 9,191 1,300 20,356 2,673
1992.............................. 12,258 1,459 9,993 1,378 22,250 2,837
1993.............................. 12,270 1,518 10,016 1,438 22,286 2,956
1994.............................. 12,512 1,680 10,285 1,621 22,797 3,301
1995.............................. 12,019 1,770 10,014 1,751 22,032 3,521
1996.............................. 11,065 1,633 9,346 1,633 20,411 3,266
----------------------------------------------------------------------------------------------------------------
\1\ The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the AFDC Program as of
July 1, 1997.
\2\ Includes expenditures for services.
NA--Not available.
Note.--Administrative costs include child care administration, work program, ADP, FAMIS, fraud control, SAVE
and other State and local administrative expenditures. Benefits include AFDC-Basic and AFDC-UP expenditures;
child support reimbursement is not included. Numbers may not add due to rounding.
Source: Administration for Children and Families, U.S. Department of Health and Human Services.
TABLE 7-5.--FEDERAL AND STATE AFDC BENEFIT PAYMENTS UNDER THE SINGLE PARENT AND UNEMPLOYED PARENT PROGRAMS,
FISCAL YEARS 1970-96 \1\
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Single Unemployed Child
Fiscal year parent \2\ parent support \3\ Total \4\
----------------------------------------------------------------------------------------------------------------
1970............................................................ $3,851 $231 0 $4,082
1971............................................................ 4,993 412 0 5,405
1972............................................................ 5,972 422 0 6,394
1973............................................................ 6,459 414 0 6,873
1974............................................................ 6,881 324 0 7,205
1975............................................................ 7,791 362 0 8,153
1976............................................................ 8,825 525 $286 9,064
1977............................................................ 9,420 617 423 9,614
1978............................................................ 9,624 565 472 9,717
1979............................................................ 9,865 522 597 9,790
1980............................................................ 10,847 693 593 10,947
1981............................................................ 11,769 1,075 659 12,185
1982............................................................ 11,601 1,256 771 12,086
1983............................................................ 12,136 1,471 865 12,742
1984............................................................ 12,759 1,612 983 13,388
1985............................................................ 13,024 1,556 901 13,679
1986............................................................ 13,672 1,563 951 14,284
1987............................................................ 14,807 1,516 1,071 15,252
1988............................................................ 15,243 1,420 1,197 15,466
1989............................................................ 15,889 1,350 1,287 15,952
1990............................................................ 17,059 1,480 1,416 17,123
1991............................................................ 18,529 1,827 1,603 18,753
1992............................................................ 20,130 2,121 1,822 20,429
1993............................................................ 19,988 2,298 1,963 20,323
1994............................................................ 20,393 2,404 2,060 20,737
1995............................................................ 19,820 2,212 2,165 19,867
1996............................................................ 18,438 1,973 2,270 18,141
----------------------------------------------------------------------------------------------------------------
\1\ The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the AFDC Program as of
July 1, 1997.
\2\ Includes payments to two-parent families where one adult is incapacitated.
\3\ Total AFDC collections (including collections on behalf of foster care children) less payments to
recipients.
\4\ Net AFDC benefits--gross benefits less those reimbursed by child support collections.
Source: Administration for Children and Families, U.S. Department of Health and Human Services.
TABLE 7-6.--HISTORICAL TRENDS IN AFDC ENROLLMENTS AND AVERAGE PAYMENTS, FISCAL YEARS 1970-96 \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Average monthly number of: (in thousands) Average monthly
-------------------------------------------------------------------- benefit
Fiscal year Unemployed Unemployed ------------------
Families \2\ Recipients \2\ Children \2\ parent parent
families recipients Family Recipient
--------------------------------------------------------------------------------------------------------------------------------------------------------
1970............................................................. 1,909 7,429 5,494 78 420 $178 $46
1971............................................................. 2,532 9,556 6,963 143 726 180 48
1972............................................................. 2,918 10,632 7,698 134 639 187 51
1973............................................................. 3,123 11,038 7,965 120 557 187 53
1974............................................................. 3,170 10,845 7,824 95 434 194 57
1975............................................................. 3,342 11,067 7,928 101 451 210 63
1976............................................................. 3,561 11,339 8,156 135 593 226 71
1977............................................................. 3,575 11,108 7,818 149 659 242 78
1978............................................................. 3,528 10,663 7,475 127 567 250 83
1979............................................................. 3,493 10,311 7,193 113 504 257 87
1980............................................................. 3,642 10,597 7,320 141 612 274 94
1981............................................................. 3,871 11,160 7,615 209 881 277 96
1982............................................................. 3,569 10,431 6,975 232 976 300 103
1983............................................................. 3,651 10,659 7,051 272 1,144 311 106
1984............................................................. 3,725 10,866 7,153 287 1,222 322 110
1985............................................................. 3,692 10,813 7,165 261 1,131 339 116
1986............................................................. 3,747 10,995 7,294 253 1,101 352 120
1987............................................................. 3,784 11,065 7,381 236 1,035 359 123
1988............................................................. 3,748 10.920 7,326 210 929 370 127
1989............................................................. 3,771 10,935 7,370 193 856 381 131
1990............................................................. 3,974 11,460 7,755 204 899 389 135
1991............................................................. 4,375 12,595 8,515 268 1,148 388 135
1992............................................................. 4,769 13,625 9,225 322 1,348 389 136
1993............................................................. 4,981 14,144 9,539 359 1,489 373 131
1994............................................................. 5,046 14,226 9,590 363 1,509 376 134
1995............................................................. 4,869 13,619 9,275 335 1,383 377 135
1996 \3\......................................................... 4,553 12,649 8,673 302 1,241 374 134
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 repealed the AFDC Program as of July 1, 1997.
\2\ Includes unemployed parent families.
\3\ Preliminary data.
Note.--AFDC benefit amounts have not been reduced by child support collections.
Source: Administration for Children and Families, U.S. Department of Health and Human Services.
TABLE 7-7.--HISTORIC TRENDS IN AVERAGE AFDC PAYMENTS AND IN MAXIMUM BENEFITS FOR A FAMILY OF FOUR IN THE MEDIAN
STATE, CURRENT AND CONSTANT DOLLARS, \1\ SELECTED FISCAL YEARS 1970-96
----------------------------------------------------------------------------------------------------------------
Fiscal year
AFDC payments -----------------------------------------------------------------------
1970 1975 1980 1985 1990 1992 1994 1995 1996
----------------------------------------------------------------------------------------------------------------
Average monthly benefit per family...... $178 $210 $274 $339 $389 $389 $376 $377 $374
In fiscal year 1996 dollars......... 734 631 533 495 470 435 397 387 374
Average monthly benefit per person...... 46 63 94 116 135 136 134 135 134
In fiscal year 1996 dollars......... 189 189 183 169 163 152 142 139 134
Maximum benefit in July for a family
unit of four with no income in the
median State (ranked by benefit size)
\2\.................................... 221 264 350 399 432 435 435 435 450
In fiscal year 1996 dollars......... 910 793 681 582 522 486 460 447 450
----------------------------------------------------------------------------------------------------------------
\1\ The constant dollar numbers were calculated by use of the Consumer Price Index for all Urban Consumers (CPI-
U).
\2\ Among the 50 States and the District of Columbia.
Note.--AFDC benefit amounts have not been reduced by child support enforcement collections.
Source: Family Support Administration, U.S. Department of Health and Human Services. Median State benefits
provided by the Congressional Research Service (CRS). Table prepared by CRS.
State AFDC Data: Benefits, Expenditures, and Caseloads
Maximum benefits, by State, January 1997
By January 1, 1997 more than half of the States had TANF
plans in effect. Table 7-8 shows maximum AFDC/TANF benefits for
a one-parent family of three persons by State at the start of
1997. All but four jurisdictions retained their July 1, 1996
AFDC maximum benefit schedule. Maryland and Vermont increased
benefits; California and the District of Columbia reduced
benefits. Maximum cash benefits in Alaska ($923) were almost
eight times as large as in Mississippi ($120). Addition of food
stamps narrowed the range. Combined benefits for an Alaskan
family of three with no countable income ($1,246) were somewhat
less than triple those of a comparable family in Mississippi
($435).
Table 7-9 presents maximum AFDC/TANF benefits, as of
January 1, 1997, for families of one to six persons. Generally,
the amounts shown applied both to one- and two-parent families,
but some States paid higher amounts to the latter group. For
average size families (three persons) with no countable income,
benefits in the median State averaged $126 per recipient. For
units of one person (a child with an ineligible caretaker, or a
pregnant woman), the median State paid a maximum of $214. Per
recipient amounts declined with family size: four-person units,
$114 per recipient; five-person units, $105; and six-person
units, $97.
AFDC coverage of children, by State, selected years
Table 7-10 (columns 1-5) presents the percentage of
children enrolled in AFDC by State for selected years. It shows
wide variation among States. For example, the share of all
children receiving AFDC ranged in 1970 from 3.1 percent in New
Hampshire to 16.8 percent in the District of Columbia. The
differences reflect disparities in income eligibility limits,
which are set by States, and economic and demographic
conditions.
For decennial census years (1970, 1980, and 1990), table
7-10 (columns 6-8) compares AFDC child enrollment to the number
of children in the State who meet the Census Bureau's
definition of poverty. For the United States, this ratio rose
from 59 percent in 1970 to 67 percent in 1990. For some States
the ratio of AFDC children to poor children exceeded 100
percent, even though effective AFDC income eligibility limits
were below poverty thresholds in virtually all States. The
probable explanation is that AFDC eligibility was based on
monthly income and circumstances in contrast to the count of
poor children, which depends on annual money income. The result
is that some families, poor enough to qualify for AFDC at some
time during the year, might have had money income in other
parts of the year that brought their total up to or above the
poverty threshold.
TABLE 7-8.--NEED STANDARD AND MAXIMUM AFDC/TANF AND FOOD STAMP BENEFITS, ONE-PARENT FAMILY OF THREE PERSONS,\1\ JANUARY 1997
--------------------------------------------------------------------------------------------------------------------------------------------------------
Gross
income Combined AFDC benefits
limit (185 100 percent Maximum Food stamp Combined benefits as a as a percent
State name percent of of ``need'' AFDC grant benefit \3\ benefits percent of of 1997
need \2\ 1997 poverty poverty
standard) guidelines \4\ guidelines \4\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama................................................ $1,245 $673 $164 $315 $479 43 15
Alaska \5\............................................. 1,955 1,057 923 323 1,246 90 66
Arizona................................................ 1,783 964 347 315 662 60 31
Arkansas \5\........................................... 1,304 705 204 315 519 47 18
California............................................. 1,360 735 565 261 826 74 51
Colorado \5\........................................... 779 421 356 315 671 60 32
Connecticut............................................ 1,613 872 636 239 875 79 57
Delaware \5\........................................... 625 338 338 315 653 59 30
District of Columbia \5\............................... 1,317 712 398 311 709 64 36
Florida................................................ 2,002 1,082 303 315 618 56 27
Georgia \5\............................................ 784 424 280 315 595 54 25
Guam \5\............................................... 1,245 673 673 434 1,107 100 61
Hawaii \5\............................................. 2,109 1,140 712 472 1,184 93 56
Idaho \5\.............................................. 1,833 991 317 315 632 57 29
Illinois \5\........................................... 1,830 989 377 315 692 62 34
Indiana................................................ 592 320 288 315 603 54 26
Iowa................................................... 1,571 849 426 302 728 66 38
Kansas................................................. 794 429 429 302 730 66 39
Kentucky............................................... 973 526 262 315 577 52 24
Louisiana.............................................. 1,217 658 190 315 505 45 17
Maine.................................................. 1,023 553 418 305 723 65 38
Maryland............................................... 956 517 377 315 692 62 34
Massachusetts.......................................... 1,045 565 565 261 826 74 51
Michigan:
Washtenaw County.................................. 1,151 622 489 292 752 68 41
Wayne County...................................... 1,084 586 459 284 772 70 44
Minnesota \5\.......................................... 984 532 532 271 803 72 48
Mississippi............................................ 681 368 120 315 435 39 11
Missouri............................................... 1,565 846 292 315 607 55 26
Montana................................................ 1,032 558 438 299 737 66 39
Nebraska............................................... 673 364 364 315 679 61 33
Nevada................................................. 1,423 769 348 315 663 60 31
New Hampshire.......................................... 3,210 1,735 550 265 815 73 50
New Jersey \5\......................................... 1,822 985 424 303 727 65 38
New Mexico \5\......................................... 720 389 389 314 702 63 35
New York:
(New York City).................................... 1,067 577 577 257 834 75 52
(Suffolk County)................................... 1,301 703 703 219 922 83 63
North Carolina......................................... 1,006 544 272 315 587 53 24
North Dakota \5\....................................... 797 431 431 301 732 66 39
Ohio................................................... 1,758 950 341 315 656 59 31
Oklahoma............................................... 1,193 645 307 315 622 56 28
Oregon................................................. 851 460 460 292 752 68 41
Pennsylvania \5\....................................... 1,136 614 421 304 725 65 38
Puerto Rico \5\........................................ 666 360 180 NA 180 16 NA
Rhode Island \5\....................................... 1,025 554 554 264 818 74 50
South Carolina......................................... 999 540 200 315 515 46 18
South Dakota........................................... 938 507 430 301 731 66 39
Tennessee.............................................. 1,252 677 185 315 500 45 17
Texas.................................................. 1,389 751 188 315 503 45 17
Utah................................................... 1,051 568 426 302 728 66 38
Vermont................................................ 2,226 1,203 639 238 878 79 58
Virgin Islands \5\..................................... 555 300 240 405 645 58 22
Virginia \5\........................................... 727 393 354 315 669 60 32
Washington \5\......................................... 2,281 1,233 546 266 812 73 49
West Virginia \5\...................................... 1,833 991 253 315 568 51 23
Wisconsin.............................................. 1,197 647 517 275 792 71 47
Wyoming................................................ 1,247 674 360 315 675 61 32
------------------------------------------------------------------------------------------------
Median AFDC State \6\.............................. ........... ........... 377 315 692 62 34
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ In most States these amounts apply also to two-parent families of three (where the second parent is incapacitated or unemployed). Some, however,
increase benefits for these families.
\2\ In States with area differentials, figure shown is for area with highest benefit.
\3\ Food stamp benefits are based on maximum AFDC/TANF benefits shown and assume deductions of $384 monthly ($134 standard household deduction and $250
maximum allowable deduction for excess shelter cost) in the 48 contiguous States and the District of Columbia. In the other four jurisdictions these
maximum allowable food stamp deductions are assumed: Alaska, $663; Hawaii, $546; Guam, $573; and the Virgin Islands, $302. If only the standard
deduction were assumed, food stamp benefits would drop by about $75 monthly in most of the 48 contiguous States and in the District of Columbia.
Maximum food stamp benefits from October 1996 through September 1997 are $315 for a family of three, with these exceptions: (urban) Alaska, $401;
Hawaii, $522; Guam, $464; and the Virgin Islands, $495.
\4\ The 1997 poverty guidelines for a family of three are: $1,111 per month for the 48 contiguous States and the District of Columbia; $1,389 for
Alaska; and $1,278 for Hawaii.
\5\ These jurisdictions did not yet have TANF plans in effect on January 1, 1997.
\6\ Ranked by size of maximum benefit among the 50 States and the District of Columbia.
NA--Not available.
Note.--Puerto Rico does not have a Food Stamp Program; instead a cash nutritional assistance payment is made.
Source: Table prepared by the Congressional Research Service from information provided by a telephone survey of the States.
TABLE 7-9.--MAXIMUM AFDC/TANF BENEFITS BY FAMILY SIZE, JANUARY 1997
----------------------------------------------------------------------------------------------------------------
Size of filing unit (family)
State -----------------------------------------------------
1 2 3 4 5 6
----------------------------------------------------------------------------------------------------------------
Alabama................................................... $111 $137 $164 $194 $225 $252
Alaska \1\................................................ 514 821 923 1,025 1,127 1,229
Arizona................................................... 204 275 347 418 489 561
Arkansas \1\.............................................. 81 162 204 247 286 331
California \2\ \3\........................................ 279 456 565 673 767 861
Colorado \1\.............................................. 214 280 356 432 512 590
Connecticut \2\........................................... 402 513 636 741 835 935
Delaware \1\.............................................. 201 270 338 407 475 544
District of Columbia \1\.................................. 251 312 398 486 561 660
Florida................................................... 180 241 303 364 426 487
Georgia \1\............................................... 155 235 280 330 378 410
Guam \1\.................................................. 420 537 673 776 874 985
Hawaii \1\................................................ 418 565 712 859 1,006 1,153
Idaho \1\................................................. 205 251 317 382 448 513
Illinois \1\ \2\.......................................... 212 278 377 414 485 545
Indiana................................................... 139 229 288 346 405 463
Iowa...................................................... 183 361 426 495 548 610
Kansas \2\................................................ 267 352 429 497 558 619
Kentucky.................................................. 186 225 262 328 383 432
Louisiana \2\............................................. 72 138 190 234 277 316
Maine..................................................... 198 312 418 526 632 739
Maryland.................................................. 167 295 377 455 527 579
Massachusetts \3\......................................... 383 474 565 651 741 832
Michigan:
Wayne County........................................... 276 371 459 563 659 792
Washtenaw County....................................... 305 401 489 593 689 822
Minnesota \1\............................................. 187 437 532 621 697 773
Mississippi............................................... 60 96 120 144 168 192
Missouri.................................................. 136 234 292 342 388 431
Montana................................................... 261 349 438 527 615 703
Nebraska.................................................. 222 293 364 435 506 577
Nevada.................................................... 229 289 348 408 468 528
New Hampshire............................................. 414 481 550 613 673 754
New Jersey \1\............................................ 162 322 424 488 522 616
New Mexico \1\............................................ 231 310 389 469 548 627
New York:
New York City........................................... 352 468 577 687 800 884
Suffolk County.......................................... 446 576 703 824 949 1,038
North Carolina............................................ 181 236 272 297 324 349
North Dakota \1\.......................................... 223 333 431 517 591 653
Ohio...................................................... 203 279 341 421 493 549
Oklahoma.................................................. 190 238 307 380 445 509
Oregon.................................................... 310 395 460 565 660 755
Pennsylvania \1\ \2\...................................... 215 330 421 514 607 687
Puerto Rico \1\........................................... 132 156 180 204 228 252
Rhode Island \1\.......................................... 327 449 554 632 710 800
South Carolina............................................ 119 159 200 241 281 321
South Dakota.............................................. 304 380 430 478 528 578
Tennessee................................................. 95 142 185 226 264 305
Texas..................................................... 78 163 188 226 251 288
Utah...................................................... 246 342 426 498 567 625
Vermont \2\............................................... 438 539 639 719 805 861
Virgin Islands \1\........................................ 120 180 240 300 360 420
Virginia \1\ \2\.......................................... 220 294 354 410 488 534
Washington \1\............................................ 349 440 546 642 740 841
West Virginia \1\......................................... 149 201 253 312 360 413
Wisconsin \2\............................................. 248 440 517 617 708 766
Wyoming \2\............................................... 195 320 360 390 450 510
-----------------------------------------------------
Median State \4\...................................... 214 310 377 455 527 579
----------------------------------------------------------------------------------------------------------------
\1\ These jurisdictions did not yet have TANF plans in effect on January 1, 1997.
\2\ These States (like Michigan and New York) have regional or urban/rural benefit schedules. Amounts shown are
for highest benefit area.
\3\ Benefit amounts are higher than shown for persons exempt from work.
\4\ Median State among 50 States and the District of Columbia, ranked by benefit size.
Source: Table prepared by Congressional Research Service on the basis of a telephone survey.
TABLE 7-10.--AFDC COVERAGE OF CHILDREN, BY STATE, SELECTED YEARS 1970-96
----------------------------------------------------------------------------------------------------------------
Percent of all children receiving AFDC children as a
AFDC percentage of poor
State ---------------------------------------- children
-----------------------
1970 1980 1990 1995 1996 1970 1980 1990
----------------------------------------------------------------------------------------------------------------
Alabama......................................... 8.8 11.0 8.8 8.1 7.4 30.6 36.4 36.5
Alaska.......................................... 5.3 8.4 7.8 12.3 12.6 37.6 52.4 68.4
Arizona......................................... 7.0 5.6 9.0 11.4 10.3 39.6 25.3 40.9
Arkansas........................................ 6.0 9.2 8.3 7.1 6.4 19.6 29.8 32.9
California...................................... 14.4 15.6 17.1 21.1 20.4 115.2 77.3 93.7
Colorado........................................ 7.4 6.8 8.1 7.6 6.8 58.8 43.3 53.1
Connecticut..................................... 6.6 11.7 11.0 14.5 13.6 86.3 80.7 102.9
Delaware........................................ 8.5 14.5 9.0 9.7 9.0 69.6 70.6 75.1
District of Columbia............................ 16.8 39.9 30.6 42.7 44.0 75.4 123.9 120.2
Florida......................................... 8.4 8.4 9.4 13.2 11.5 44.6 34.8 50.3
Georgia......................................... 10.6 10.3 12.1 14.2 12.8 44.7 37.4 60.0
Hawaii.......................................... 7.1 14.9 10.6 14.3 14.4 69.6 78.8 91.7
Idaho........................................... 4.8 4.6 3.7 4.8 4.6 38.2 22.2 23.0
Illinois........................................ 8.3 14.9 15.0 15.5 14.4 76.7 80.9 87.9
Indiana......................................... 3.6 7.4 7.3 8.8 6.9 39.2 46.1 51.4
Iowa............................................ 5.1 9.0 9.0 9.1 8.2 51.4 57.8 62.6
Kansas.......................................... 6.1 7.9 8.0 7.9 7.0 51.4 49.5 56.3
Kentucky........................................ 8.7 11.3 12.4 13.2 12.4 35.4 41.1 50.1
Louisiana....................................... 12.8 12.0 16.4 14.0 13.1 43.2 41.5 52.2
Maine........................................... 9.4 12.4 11.6 12.3 11.8 65.9 54.8 84.1
Maryland........................................ 8.0 12.8 10.9 12.0 10.9 71.2 78.8 96.8
Massachusetts................................... 9.0 15.2 12.6 12.4 10.7 102.4 89.0 95.3
Michigan........................................ 7.0 18.0 17.6 15.7 13.9 74.3 105.1 94.8
Minnesota....................................... 4.9 8.2 9.6 9.1 9.3 51.8 59.6 75.3
Mississippi..................................... 12.1 16.0 17.4 14.0 12.7 29.7 41.8 51.7
Missouri........................................ 7.8 10.6 10.8 12.7 11.6 53.1 54.7 60.6
Montana......................................... 4.7 6.1 8.5 9.3 8.8 35.8 31.8 41.8
Nebraska........................................ 4.7 5.8 6.9 6.5 6.1 38.9 35.1 49.9
Nevada.......................................... 6.1 4.6 5.5 7.7 6.5 69.3 32.3 41.5
New Hampshire................................... 3.1 6.2 3.9 6.2 5.4 39.0 45.7 52.3
New Jersey...................................... 10.9 16.1 12.0 11.0 9.8 120.3 90.7 106.0
New Mexico...................................... 10.5 9.3 8.5 13.5 13.0 40.0 32.2 30.6
New York........................................ 13.8 16.3 15.7 18.0 17.0 109.8 68.3 82.3
North Carolina.................................. 5.7 8.6 9.6 12.0 10.4 24.9 34.5 55.6
North Dakota.................................... 3.8 4.7 6.0 5.7 5.4 23.6 23.7 34.8
Ohio............................................ 5.9 12.3 15.0 14.6 13.4 60.0 73.1 84.0
Oklahoma........................................ 8.9 7.8 9.3 9.7 8.4 46.2 37.0 42.9
Oregon.......................................... 8.2 8.4 8.5 9.0 7.4 77.0 52.6 53.7
Pennsylvania.................................... 9.2 13.9 12.5 13.9 12.7 85.5 77.0 79.9
Rhode Island.................................... 9.9 15.2 13.6 17.0 16.6 84.6 84.1 98.4
South Carolina.................................. 5.0 11.8 8.8 10.0 9.5 17.8 42.4 41.7
South Dakota.................................... 5.4 6.3 6.8 6.0 5.8 29.1 24.1 33.4
Tennessee....................................... 8.7 9.5 12.0 14.6 13.7 36.1 35.4 57.2
Texas........................................... 6.0 5.4 9.0 9.9 8.9 23.9 22.1 36.9
Utah............................................ 6.0 5.0 4.9 4.6 4.0 56.7 32.1 39.1
Vermont......................................... 5.7 10.3 9.7 11.5 10.7 50.0 51.7 80.3
Virginia........................................ 4.8 8.3 7.0 8.0 7.0 27.2 41.4 52.7
Washington...................................... 7.6 9.5 12.0 13.1 12.3 78.7 62.1 82.3
West Virginia................................... 11.8 10.9 15.6 15.6 14.6 49.3 44.9 59.5
Wisconsin....................................... 4.0 11.3 12.4 10.8 9.1 45.1 80.2 83.7
Wyoming......................................... 3.7 3.4 7.1 7.3 6.8 31.4 31.3 49.3
---------------------------------------------------------------
U.S. total.................................. 8.8 11.7 12.2 13.5 12.6 58.9 56.3 66.7
----------------------------------------------------------------------------------------------------------------
Table prepared by Congressional Research Service. Data sources: AFDC enrollment--1970, July 1970 numbers; 1980,
December 1980 numbers; fiscal year monthly averages for 1990, 1995 and 1996. All AFDC data are from the U.S.
Department of Health and Human Services and its predecessor; 1970 and 1980 data include foster care children.
Population data are from U.S. Census Bureau. Poor children are those whose family money income for the
preceding year--1969, 1979, and 1989, respectively--fell short of the poverty threshold. Numbers of all
children are from decennial census publications for 1970, 1980, and 1990; 1995 data are July 1, 1994
estimates; 1996 data are July 1, 1996 estimates.
Administrative costs and AFDC enrollment, by State, fiscal year 1996
Costs of administering AFDC benefits in fiscal year 1996
varied widely among the States, as shown by table 7-11. Per
family they ranged from a low of $227 (less than $20 monthly)
in Louisiana to a peak of $1,583 in Oregon. Administrative
costs exceeded $1,000 per family in 12 other States: Delaware,
Kansas, Maryland, Massachusetts, Minnesota, Nebraska, New
Hampshire, New Jersey, New York, Oklahoma, Utah, and Wisconsin.
This table also shows that more than half of the fiscal year
1996 AFDC caseload lived in six States: California, 20 percent;
New York, 10 percent; Texas, 6 percent; Illinois, Florida, and
Ohio, 5 percent each.
TABLE 7-11.--AVERAGE MONTHLY NUMBER OF AFDC FAMILIES AND RECIPIENTS, TOTAL BENEFIT PAYMENTS AND ADMINISTRATIVE
COSTS AND AVERAGE PAYMENT PER FAMILY AND RECIPIENT, FISCAL YEAR 1996
----------------------------------------------------------------------------------------------------------------
Total Average Average Average monthly Total Admin.
assistance monthly monthly payment per admin. cost per
State payments caseload \1\ recipients \1\ ------------------- cost \2\ AFDC
(mill.) (thous.) (thous.) Family Recipient (mill.) family \3\
----------------------------------------------------------------------------------------------------------------
Alabama...................... $75.1 42 105 $148 $59 $22.0 $520
Alaska....................... 107.4 12 36 731 247 10.0 819
Arizona...................... 228.3 63 172 300 111 47.5 749
Arkansas..................... 51.6 23 58 189 74 13.2 581
California................... 5,907.5 896 2,626 549 187 587.6 656
Colorado..................... 129.2 35 99 304 109 23.1 653
Connecticut.................. 322.9 58 162 463 166 31.5 543
Delaware..................... 34.7 10 23 279 124 12.0 1,157
District of Columbia......... 120.8 26 70 391 143 22.6 877
Florida...................... 679.7 212 561 267 101 131.6 621
Georgia...................... 384.8 130 353 246 91 60.2 462
Guam......................... 14.1 2 8 550 150 1.6 741
Hawaii....................... 173.3 22 67 657 217 9.8 447
Idaho........................ 30.1 9 23 278 109 8.8 974
Illinois..................... 832.9 224 655 310 106 119.7 534
Indiana...................... 153.5 53 148 242 86 29.7 562
Iowa......................... 131.1 33 89 333 122 19.7 600
Kansas....................... 97.9 25 68 324 119 25.4 1,012
Kentucky..................... 191.4 72 175 222 91 32.5 453
Louisiana.................... 130.1 71 236 154 46 16.0 227
Maine........................ 98.6 20 56 401 147 6.3 309
Maryland..................... 285.2 74 204 321 116 89.2 1,203
Massachusetts................ 559.9 88 237 528 197 93.0 1,053
Michigan..................... 778.8 178 527 365 123 159.8 898
Minnesota.................... 332.6 58 171 476 162 62.1 1,066
Mississippi.................. 67.8 48 129 118 44 16.7 349
Missouri..................... 254.0 83 232 256 91 24.4 295
Montana...................... 45.5 11 31 350 121 6.9 640
Nebraska..................... 53.5 14 39 315 115 21.5 1,521
Nevada....................... 48.4 15 38 272 107 14.4 972
New Hampshire................ 49.8 10 24 435 171 12.1 1,267
New Jersey................... 462.5 112 288 344 134 150.6 1,345
New Mexico................... 152.7 34 101 376 126 15.7 465
New York..................... 2,929.3 433 1,189 563 205 550.7 1,271
North Carolina............... 299.6 113 278 221 90 68.7 607
North Dakota................. 21.0 5 13 358 131 4.6 941
Ohio......................... 762.8 207 546 308 116 90.0 435
Oklahoma..................... 121.9 39 105 262 97 42.5 1,095
Oregon....................... 154.5 33 87 385 148 52.9 1,583
Pennsylvania................. 821.9 190 544 360 126 102.1 537
Puerto Rico.................. 63.4 51 155 104 34 14.6 287
Rhode Island................. 125.3 21 58 492 179 10.1 476
South Carolina............... 100.9 46 119 184 71 31.5 688
South Dakota................. 21.6 6 16 300 110 4.3 711
Tennessee.................... 189.8 99 260 160 61 38.9 393
Texas........................ 496.0 255 684 162 60 104.4 409
Utah......................... 64.2 15 40 363 133 22.4 1,514
Vermont...................... 55.6 9 25 512 183 6.1 673
Virgin Islands............... 4.2 1 5 249 70 0.7 502
Virginia..................... 199.2 65 162 256 103 38.5 593
Washington................... 584.8 99 274 493 178 78.4 792
West Virginia................ 101.5 37 95 231 89 11.5 315
Wisconsin.................... 291.0 60 170 404 142 91.6 1,526
Wyoming...................... 16.7 5 13 295 109 3.8 806
----------------------------------------------------------------------------------
U.S. total............... 20,411.1 4,553 12,649 374 134 3,265.9 717
----------------------------------------------------------------------------------------------------------------
\1\ Preliminary data.
\2\ Administrative costs include child care administration, work program, ADP, FAMIS, fraud control, SAVE, and
other State and local administrative expenditures.
\3\ Average annual administrative cost per family.
Source: Administration for Children and Families, U.S. Department of Health and Human Services.
AFDC-unemployed parent families, by State, fiscal year 1996
The distribution of unemployed-parent (AFDC-UP) families
was very uneven among States (table 7-12). More than half (54
percent) of these families were in California. Two-parent
families accounted for 18 percent of the California caseload,
but only 7 percent of the national total.
Need standards and maximum benefits, by State, selected years
From 1970 to 1997, AFDC benefit levels declined in real
value in all States (but rose in Puerto Rico); in the same
period need standards declined in real value in all but 11
States (tables 7-13 and 7-14). In the median State, ranked by
size of benefit level, maximum AFDC benefits fell 50 percent in
this period, from $751 (expressed in January 1997 dollars) to
$377. As noted earlier, some of the benefit erosion was offset
by expansion of the Food Stamp Program, which provides 100-
percent federally funded benefits that are adjusted for price
inflation.
TABLE 7-12.--AFDC-UP RECIPIENTS OF CASH PAYMENTS AND AMOUNTS OF PAYMENTS BY STATE, FISCAL YEAR 1996
----------------------------------------------------------------------------------------------------------------
Average monthly
UP money Average Average number payment per:
State payments number of of recipients ------------------
(thousands) families \1\ \1\ Family Recipient
----------------------------------------------------------------------------------------------------------------
Alabama........................................... $108 83 355 $108 $25
Alaska............................................ 16,869 1,810 8,338 777 169
Arizona........................................... 5,635 1,251 5,465 376 86
Arkansas.......................................... 934 240 963 324 81
California........................................ 1,228,319 161,782 657,970 633 156
Colorado.......................................... 1,704 444 1,538 320 92
Connecticut....................................... 21,265 3,253 13,543 545 131
Delaware.......................................... 433 115 446 314 81
District of Columbia.............................. 997 145 693 572 120
Florida........................................... 11,889 2,640 10,423 375 95
Georgia........................................... 1,167 325 1,282 299 76
Guam.............................................. 1,764 189 1,038 779 142
Hawaii............................................ 15,211 1,614 7,345 785 173
Idaho............................................. 1,221 293 1,240 347 82
Illinois.......................................... 39,354 9,840 41,724 333 79
Indiana........................................... 4,895 1,333 5,669 306 72
Iowa.............................................. 13,337 3,122 12,528 356 89
Kansas............................................ 5,211 1,151 4,515 377 96
Kentucky.......................................... 9,917 3,046 11,136 271 74
Louisiana......................................... 542 217 1,092 208 41
Maine............................................. 10,394 1,650 6,835 525 127
Maryland.......................................... 2,050 460 1,975 371 86
Massachusetts..................................... 20,027 2,647 11,258 631 148
Michigan.......................................... 105,268 19,700 84,975 445 103
Minnesota......................................... 27,011 3,948 18,923 570 119
Mississippi....................................... 54 33 130 136 34
Missouri.......................................... 4,221 1,105 4,064 318 87
Montana........................................... 5,317 934 4,072 474 109
Nebraska.......................................... 2,978 644 2,745 385 90
Nevada............................................ 1,059 279 1,071 317 82
New Hampshire..................................... 718 130 558 459 107
New Jersey........................................ 14,989 2,865 12,078 436 103
New Mexico........................................ 7,643 1,191 5,575 535 114
New York.......................................... 108,901 17,788 72,439 510 125
North Carolina.................................... 6,709 2,190 8,288 255 67
North Dakota...................................... 420 73 355 479 99
Ohio.............................................. 54,534 12,053 47,933 377 95
Oklahoma.......................................... 1,024 261 977 328 87
Oregon............................................ 12,017 2,181 8,753 459 114
Pennsylvania...................................... 29,824 6,402 26,793 388 93
Rhode Island...................................... 3,284 485 1,965 564 139
South Carolina.................................... 531 181 816 244 54
South Dakota...................................... 156 35 192 367 67
Tennessee......................................... 3,321 1,392 5,290 199 52
Texas............................................. 14,047 5,934 23,925 197 49
Utah.............................................. 455 101 452 377 84
Vermont........................................... 6,861 1,257 4,987 455 115
Virgin Islands.................................... 0 0 0 0 0
Virginia.......................................... 2,745 516 2,099 444 109
Washington........................................ 102,560 14,123 59,891 605 143
West Virginia..................................... 15,148 4,447 16,794 284 75
Wisconsin......................................... 28,033 3,676 17,723 635 132
Wyoming........................................... 227 53 229 356 83
-------------------------------------------------------------
U.S. total.................................... 1,973,298 301,628 1,241,463 545 132
----------------------------------------------------------------------------------------------------------------
\1\ Preliminary data.
Source: Administration for Children and Families, U.S. Department of Health and Human Services.
Total AFDC benefit expenditures, by State, selected years
Total AFDC benefit expenditures by State for fiscal years
1990-96 are presented in table 7-15. Nationally benefit outlays
rose from $18.5 billion in fiscal year 1990 to an all-time peak
of $22.8 billion in fiscal year 1994, then declined to $22.0
billion and $20.4 billion in the next 2 years. Measured in 1996
value dollars, U.S. benefit spending increased from $22.4
billion in fiscal year 1990 to a peak of $24.1 billion in
fiscal year 1994, as shown on table 7-2. AFDC benefit outlays
in fiscal year 1996 were smaller than in fiscal year 1994 in
all jurisdictions except: Guam (up 16.5 percent); Hawaii (6.3
percent); Nevada (0.6 percent); New Mexico (6.1 percent); New
York (0.6 percent); and the Virgin Islands (20.0 percent).
Financing of AFDC
Federal funding shares
The Federal share of a State's AFDC benefit payments was
determined by the matching formula specified for Medicaid in
title XIX of the Social Security Act. Within limits, the
Federal Medicaid matching rate is inversely related to State
per capita income squared. If State per capita income equals
the national average, the Federal share is 55 percent; if State
per capita income is not more than 5.4 percent above average,
the share is between 50 and 55 percent; if State per capita
income is below average, the share is above 55 percent. Thus,
Federal matching for AFDC benefit payments varied from State to
State, ranging from 50 percent in 11 States and the District of
Columbia to 78.07 percent in Mississippi in fiscal year 1996,
the last full year of AFDC. Table 7-16 presents State Medicaid
matching rates for selected fiscal years 1984-98. It shows that
California, Colorado, Washington, and Wyoming, which received
the minimum 50 percent Federal share in 1984-85, now receive a
higher match rate because their comparative per capita income
position has declined. Mississippi's relative position
improved, reducing the Medicaid rate to 77.22 percent for
fiscal year 1997.
TABLE 7-13.--AFDC NEED STANDARD FOR A THREE-PERSON FAMILY BY STATE, SELECTED YEARS 1970-97
--------------------------------------------------------------------------------------------------------------------------------------------------------
Percent
July July July July January January January January January change in
State 1970 \1\ 1975 1980 1985 1990 \2\ 1994 \2\ 1995 \2\ 1996 \2\ 1997 \2\ real value,
1970-97 \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama............................................. $184 $180 $192 $384 $578 $673 $673 $673 $673 -10
Alaska.............................................. 350 350 457 719 846 975 1,022 1,028 1,057 -26
Arizona............................................. 212 233 233 233 621 964 964 964 964 11
Arkansas............................................ 149 245 234 234 705 705 705 705 705 16
California.......................................... 351 316 480 587 694 715 715 730 735 -49
Colorado............................................ 193 217 290 421 421 421 421 421 421 -47
Connecticut......................................... 283 346 475 569 649 680 872 872 872 -24
Delaware............................................ 245 245 266 287 333 338 338 338 338 -66
District of Columbia................................ 229 286 394 654 712 72 712 712 712 -24
Florida............................................. 189 195 195 400 838 991 991 1,050 1,082 40
Georgia............................................. 177 193 193 366 414 424 424 424 424 -41
Guam................................................ NA NA 261 265 330 330 330 330 673 NA
Hawaii.............................................. 226 428 468 468 964 1,140 1,140 1,140 1,140 24
Idaho............................................... 238 345 371 554 554 991 991 991 991 2
Illinois............................................ 232 261 288 657 777 890 936 963 989 5
Indiana............................................. 272 307 307 307 320 320 320 320 320 -71
Iowa................................................ 247 309 360 497 497 849 849 849 849 -16
Kansas.............................................. 243 321 345 391 409 429 429 429 429 -57
Kentucky............................................ 208 185 188 197 526 526 526 526 526 -38
Louisiana........................................... 172 164 402 579 658 658 658 658 658 -6
Maine............................................... 277 277 415 510 652 553 553 553 553 -51
Maryland............................................ 249 259 270 455 548 507 517 517 517 -49
Massachusetts....................................... 268 259 379 439 539 579 579 565 565 -48
Michigan:
Washtenaw County................................ NA NA NA 592 611 587 587 587 622 NA
Wayne County.................................... 219 333 425 557 575 551 551 551 586 -34
Minnesota........................................... 256 330 417 528 532 532 532 532 532 -49
Mississippi......................................... 202 241 220 286 368 368 368 368 368 -55
Missouri............................................ 285 325 312 312 312 846 846 846 846 -27
Montana............................................. 221 201 259 428 434 511 530 541 558 -38
Nebraska............................................ 281 279 310 350 364 364 364 364 364 -68
Nevada.............................................. 269 279 285 285 550 699 699 699 769 -30
New Hampshire....................................... 262 308 346 389 506 1,648 1,674 2,034 1,735 62
New Jersey.......................................... 302 310 360 404 424 985 985 985 985 -20
New Mexico.......................................... 167 197 220 258 264 357 381 389 389 -43
New York:
New York City................................... 279 332 394 474 577 577 577 577 577 -49
Suffolk County.................................. NA NA NA 579 703 703 703 703 703 NA
North Carolina...................................... 168 183 192 492 544 544 544 544 544 -21
North Dakota........................................ 232 283 334 371 386 409 431 431 431 -54
Ohio................................................ 207 346 346 652 739 879 901 924 950 13
Oklahoma............................................ 179 217 282 471 471 471 645 645 645 -12
Oregon.............................................. 229 369 282 386 432 460 460 460 460 -51
Pennsylvania........................................ 265 296 332 614 614 614 614 614 614 -43
Puerto Rico......................................... 180 108 102 180 180 360 360 360 360 -51
Rhode Island........................................ 229 278 340 409 543 554 554 554 554 -41
South Carolina...................................... 162 178 187 187 419 440 440 524 540 -18
South Dakota........................................ 264 289 321 329 377 491 507 507 507 -53
Tennessee........................................... 179 179 179 339 387 426 500 583 677 -7
Texas............................................... 198 155 155 494 574 574 751 751 751 -7
Utah................................................ 223 327 480 693 516 552 568 568 568 -38
Vermont............................................. 287 402 670 883 973 1,124 1,148 1,173 1,203 3
Virgin Islands...................................... NA 131 209 209 300 300 300 300 300 NA
Virginia............................................ 240 298 344 393 393 393 393 393 393 -60
Washington.......................................... 258 315 458 777 907 1,158 1,178 1,252 1,233 17
West Virginia....................................... 220 275 275 497 497 497 991 991 991 10
Wisconsin........................................... 214 383 522 628 647 647 647 647 647 -26
Wyoming............................................. 246 240 315 360 360 674 674 674 674 -33
---------------------------------------------------------------------------------------------------
Median State \4\................................ 232 279 321 401 539 579 645 645 586 -38
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Data on three-person families were not published or reported before 1975. Thus, the 1970 data were derived by reducing the reported four-person need
standard by the proportional difference between three- and four-person AFDC need standards as shown in the July 1975 DHEW reports.
\2\ CRS survey data.
\3\ Real percentage change, calculated assuming a January 1997 CPI-U value of 159.1 relative to the July 1970 value of 39.0.
\4\ Among 50 States and the District of Columbia, ranked by size of need standard.
NA--Not available.
Source: Table compiled by the Congressional Research Service (CRS) on the basis of data from the Department of Health and Human Services and CRS.
TABLE 7-14.--AFDC MAXIMUM BENEFIT FOR A THREE-PERSON FAMILY BY STATE, SELECTED YEARS 1970-97
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year
-------------------------------------------------------------------------------------------------------------
Percent
State change in
July July July July January January January January January January real value,
1970 \1\ 1975 1980 1985 1990 \2\ 1992 \2\ 1994 \2\ 1995 \2\ 1996 \2\ 1997 \2\ 1970-97
\3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama................................... $65 $108 $118 $118 $118 $149 $164 $164 $164 $164 -38
Alaska.................................... 328 350 457 719 846 924 923 923 923 923 -31
Arizona................................... 138 163 202 233 293 334 347 347 347 347 -38
Arkansas.................................. 89 125 161 192 204 204 204 204 204 204 -44
California................................ 186 293 473 587 694 663 607 607 607 565 -26
Colorado.................................. 193 217 290 346 356 356 356 356 356 356 -55
Connecticut............................... 283 346 475 569 649 680 680 680 636 636 -45
Delaware.................................. 160 221 266 287 333 338 338 338 338 338 -48
District of Columbia...................... 195 243 286 327 409 409 420 420 420 398 -50
Florida................................... 114 144 195 240 294 303 303 303 303 303 -35
Georgia................................... 107 123 164 223 273 280 280 280 280 280 -36
Guam...................................... NA NA 261 265 330 330 330 330 330 673 NA
Hawaii.................................... 226 428 468 468 602 666 712 712 712 712 -23
Idaho..................................... 211 300 323 304 317 315 317 317 317 317 -63
Illinois.................................. 232 261 288 341 367 367 367 377 377 377 -60
Indiana................................... 120 200 255 256 288 288 288 288 288 288 -41
Iowa...................................... 201 294 360 360 410 426 426 426 426 426 -48
Kansas.................................... 222 321 345 391 409 422 429 429 429 429 -53
Kentucky.................................. 147 185 188 197 228 228 228 228 262 262 -56
Louisiana................................. 88 128 152 190 190 190 190 190 190 190 -47
Maine..................................... 135 176 280 370 453 453 418 418 418 418 -24
Maryland.................................. 162 200 270 329 396 377 366 373 373 377 -43
Massachusetts............................. 268 259 379 432 539 539 579 579 565 565 -48
Michigan:
Washtenaw County...................... NA NA NA 447 546 489 489 489 489 489 NA
Wayne County.......................... 219 333 425 417 516 459 459 459 459 459 -49
Minnesota................................. 256 330 417 528 532 532 532 532 532 532 -49
Mississippi............................... 56 48 96 96 120 120 120 120 120 120 -47
Missouri.................................. 104 120 248 274 289 292 292 292 292 292 -31
Montana................................... 202 201 259 354 359 390 401 416 425 438 -47
Nebraska.................................. 171 210 310 350 364 364 364 364 364 364 -48
Nevada.................................... 121 195 262 285 330 372 348 348 348 348 -30
New Hampshire............................. 262 308 346 389 506 516 550 550 550 550 -49
New Jersey................................ 302 310 360 404 424 424 424 424 424 424 -66
New Mexico................................ 149 169 220 258 264 324 357 381 389 389 -36
New York:
New York City......................... 279 332 394 474 577 577 577 577 577 577 -49
Suffolk County........................ NA NA NA 579 703 703 703 703 703 703 NA
North Carolina............................ 145 183 192 246 272 272 272 272 272 272 -54
North Dakota.............................. 213 283 334 371 386 401 409 431 431 431 -50
Ohio...................................... 161 204 263 290 334 334 341 341 341 341 -48
Oklahoma.................................. 152 217 282 282 325 341 324 324 307 307 -50
Oregon.................................... 184 337 282 386 432 460 460 460 460 460 -39
Pennsylvania.............................. 265 296 332 364 421 421 421 421 421 421 -61
Puerto Rico............................... 43 43 44 90 90 180 180 180 180 180 3
Rhode Island.............................. 229 278 340 409 543 55