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Date: Monday, March 22, 1996 FOR IMMEDIATE RELEASE Contact: Michael Kharfen(202)401-9215
HHS Secretary Donna E. Shalala today announced approval of "Achieving Change for Texans (ACT)," a statewide welfare demonstration project for Texas. This is the second waiver demonstration approved for Texas under the Clinton administration.
"Real welfare reform is designed to demand both a real commitment to work and parental responsibility," said Secretary Shalala. "The Clinton administration is pleased to approve Texas' strong and innovative welfare reform demonstration that will help welfare recipients in Texas to achieve self sufficiency."
Under ACT, Aid to Families with Dependent Children (AFDC) recipients must sign a Personal Responsibility Agreement. The agreement requires them to attend school if they are under 19, cooperate with child support collection and paternity establishment efforts, abstain from using drugs and abusing alcohol, provide health checkups and immunizations for their children, and ensure that their children attend school.
The agreement also requires recipients to participate in an activity that helps them become independent, such as an education, training, or literacy program, volunteer service, or community work. They may also be required to attend parenting classes. There are sanctions for failure to comply.
ACT sets variable time limits for adult recipients' AFDC benefits, based on education and work experience of adult recipients. The demonstration includes exemptions for those who cannot work and extensions for severe personal hardship for those who live in economically distressed areas. Families will retain Medicaid benefits if AFDC benefits are terminated upon reaching the time limit.
To avoid having to go on welfare, applicants in Fort Bend County facing an economic crisis may receive a one-time payment of $1,000 in lieu of benefits. They are then barred from AFDC receipt for 12 months.
ACT disregards the income of a child who is attending school full time and increases the amount of resources a family can accrue, up to the Food Stamp program limits ($2,000 for families, $3,000 for AFDC households with an elderly or disabled person). Families may also own an automobile with a value up to $5,000.
To further aid the transition to independence, in Lubbock, Gregg, Harrison and Upshur counties, families will be allowed to set up Individual Development Accounts of up to $10,000. They will be able to use the funds only for education, training, home ownership, business start-up, or medical expenses.
"Texas combines tough requirements with incentives to help parents transition from welfare to work," said Mary Jo Bane, assistant secretary for children and families. "While Congress continues to talk about welfare reform, the Clinton administration is ending welfare as we know it--one state at a time."
The project will operate for six years and will include a rigorous evaluation.
Under a separate request, Texas received approval to test the Lone Star Image System, a new program to prevent, deter and detect fraud by AFDC applicants and recipients. Non-exempt adults or minor parents who apply for or are recipients of AFDC will be required to be finger-imaged and/or photographed in determining eligibility for benefits. The system will be tested first in Dallas and Tarrant counties.