FOR IMMEDIATE RELEASE:
Tuesday, September 24, 2002
Contact: ACF Press Office (202) 401-9215

CENSUS BUREAU'S POVERTY STATISTICS MAKES THE CASE FOR
PASSING WELFARE REAUTHORIZATION LEGISLATION

Today, the Census Bureau released data on poverty and income for calendar year 2001. The data released today indicates that the overall poverty rate in 2001 was 11.7% with child poverty at 16.3%.

"Since 1996, we have made tremendous progress in reducing poverty in America and moving millions of families from welfare to work," said Dr. Wade F. Horn, Assistant Secretary for the Administration for Children and Families, U.S. Department of Health and Human Services. "In February 2002, President Bush proposed a comprehensive plan for reauthorizing welfare that builds on the successes of the 1996 law. The House of Representatives passed a welfare reform bill in May 2002 that incorporates the key elements of the Administration's plan by encouraging work and supporting families. Unfortunately, the Senate has not yet taken action on welfare reform and time is running out."

The Census Bureau statistics show that for African-American children, the poverty rate reported today is the lowest level ever reported. The rate for Hispanic children is the lowest level reported in over 20 years.

When compared to 1996, the year of passage of the Personal Responsibility and Work Opportunity Reconciliation Act, both poverty and child poverty have declined substantially.

Compared to 1996, the data released today indicates that 3.6 million fewer people are in poverty and 2.7 million fewer children are in families with incomes below poverty.

From 2000 to 2001 there was a small increase in the overall poverty rate while the poverty rate for children was essentially unchanged. These poverty data continue to underscore the need for strengthening our efforts to help families move from welfare to work.

"The declines in poverty and child poverty since 1996 mirrors the dramatic decreases seen in the welfare caseload," said Dr. Horn. "From 1996 to 2001, there was a 52% decrease in the number of families on welfare and a 57% decrease in the number of persons on welfare."

"The tremendous progress from 1996 to 2001 in poverty reduction and decline in welfare caseloads provides a solid foundation for continued welfare reform," said Horn. "It is critically important that the Congress pass welfare reform to give States the tools they need to continue helping families move from welfare dependence to self-sufficiency. By strengthening work requirements, promoting healthy marriages and improvements in child well-being, providing additional flexibility, and assuring stable funding, a 2002 welfare reform bill can set the stage for further declines in poverty, increased employment and lower welfare dependency."

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