FOR IMMEDIATE RELEASE:
Monday, May 8, 1995
Contact: Michael Kharfen (202) 401-9215
HHS APPROVES DELAWARE WELFARE DEMONSTRATION
HHS Secretary Donna E. Shalala today approved "A Better Chance,"
a statewide welfare demonstration project for Delaware. Delaware is
the 28th state to receive approval to implement a welfare reform demonstration
under the Clinton Administration.
Under Delaware's demonstration, all Aid to Families with Dependent Children
(AFDC) program participants will be required to sign and comply with
a Contract of Mutual Responsibility. The contract will specify employment-related
activities as well as other
activities leading to self-sufficiency.
The demonstration sets a time limit of 24 months on cash benefits for
able-bodied adults over 19 years old. It will also require teen parents
to live in an adult supervised setting, attend school, participate in
parenting and family planning education, and
immunize their children. "More than a dozen states now recognize
that a critical key to
success in welfare reform is a contract that moves people from welfare
to work," said Secretary Shalala. "Delaware's demonstration
strengthens the principles of work and parental responsibility."
Delaware joins 14 other states with demonstrations requiring recipients
to sign contracts in order to be eligible for benefits. The contracts
are similar to the "personal employability plan," a key feature
of the President's Work and Responsibility Act with the goal of promoting
employment and parental responsibility. Failure to meet the requirements
results in penalties and loss of benefits. Secretary Shalala said the
President believes a contract is essential to aggressively move people
into work and must be a part of any welfare reform legislation from
the Congress.
The demonstration imposes gradual sanctions that can lead to the whole
family losing benefits if participants fail to meet education and employment
requirements. Parents will not receive an increase in AFDC payments
for additional children conceived while the family is on assistance.
Participants will also be denied benefits if they fail to cooperate
with child support enforcement. "Delaware combines strong incentives
and sanctions that will encourage parents to get the education or training
they need to become economically self-sufficient," said Mary Jo
Bane, assistant secretary for children and families. "The demonstration
focuses on teen-agers, emphasizing staying in school and preparing for
work to prevent the next generation from becoming welfare dependent."
Delaware will encourage young people to stay in school by giving a
$50 bonus payment to teens who graduate from high school. The demonstration
also helps parents move to work by providing 12 more months of transitional
child care and Medicaid benefits, in addition to the 12 months currently
provided by law. The demonstration is expected to begin later this year
and will operate for seven years, and will include a rigorous evaluation.
###
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