The 2005 Indicators of Welfare Dependence report is the eighth annual report that addresses the extent to which Americans are dependent on social welfare programs. The report provides welfare dependence indicators through 2002, reflecting changes that have taken place since enactment of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) in August 1996. The report uses a variety of data sources, including the Survey of Income and Program Participation and the Current Population Survey, Annual Demographic Supplement, analyzed using the TRIM3 micro-simulation model. These indicators show a significant decline in welfare dependency since 1996, concurrent with the more widely reported declines in welfare recipiency and poverty. In 2002, 3.2 percent of the total population was dependent, in that they received more than half of their total family income from Temporary Assistance for Needy Families (TANF), food stamps, and/or Supplemental Security Income (SSI). While marginally higher than the 3.1 percent dependency rate measured in 2001, the 2002 rate is much lower than the 5.2 percent rate measured in 1996. Overall, 4.7 million fewer Americans were dependent on welfare in 2002 compared to 1996.
PIC ID: 7281.7; Agency Sponsor: ASPE-OHSP, Office of Human Services Policy; Federal Contact: Isaacs, Julia, 202-690-7507; ASPE, Office of Human Services Policy