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Date: Friday, May 3, 1996 FOR IMMEDIATE RELEASE Contact: Michael Kharfen (202)401-9215
HHS Secretary Donna E. Shalala today announced approval of Family Independence Act (FIA), a statewide welfare project in South Carolina. This is the second waiver demonstration for South Carolina approved under the Clinton administration.
"South Carolina's new project brings the total to 60 demonstrations approved by the Clinton administration -- more than all previous administrations combined," said Secretary Shalala. "President Clinton is making good on his pledge to help states change welfare as we know it."
The Family Independence Act requires that Aid to Families with Dependent Children (AFDC) applicants participate in job search as a condition of eligibility. Recipients must sign an Individual Self-Sufficiency Plan outlining employment and training requirements, family skills training, and, if necessary, substance abuse treatment. Children will also be required to attend school. There will be sanctions for failure to comply with the plan's requirements or refusing an offer of employment.
AFDC benefits will be limited to two years, with good faith extensions. There will be no additional cash benefits for additional children born 10 or more months after the family enrolls on AFDC, but vouchers will be available for child-related commodities.
When a family reaches the time limit, if the parent requests an extension, the state may require the family to relocate in order to accept a bona fide job offer in another part of the state. The state will provide relocation assistance, including funds for moving expenses, housing search, child care, and rent for the first month. The relocation provision would apply only to families living in counties where the unemployment rate is 50 percent higher than the rest of the state. The state will also consider good cause exceptions.
FIA expands AFDC eligibility for two-parent families by removing the 100-hour employment rule and increasing the resource limit to $2,500. Recipients can also own one vehicle worth up to $10,000 and can save up to $10,000 in an Individual Development Account. They can keep earned income of children attending school, and interest and dividends of up to $400 per year.
FIA requires parents to participate in a family skill training program when appropriate. It increases the amount of child support passed through to AFDC recipients incrementally to 100 percent, and requires extensive information for paternity establishment.
"South Carolina's project combines tough time limits and sanctions with incentives to help families transition from welfare to work," said Mary Jo Bane, assistant secretary for children and families. "FIA will make a difference for the people of South Carolina."
The demonstration will operate for seven years and include a rigorous evaluation.