ACF Messenger Archive
Thursday, October 7, 2004

WELFARE ROLLS FALL UNDER TWO MILLION
1st Quarter Data for 2004 Shows Another Decline In Caseloads

HHS Secretary Tommy G. Thompson today announced welfare caseloads dropped in the first quarter of 2004 to fewer than two million families for the first time since February 1970.

Temporary Assistance for Needy Families (TANF) caseloads dropped 1.3 percent for individuals and 0.8 percent for families between December 2003 and March 2004. As of March 2004, there were 4,798,986 individuals and 1,992,143 families receiving TANF cash benefits.

“Welfare reform is working because former welfare recipients are working,” Secretary Thompson said. “President Bush is working to ensure that even more families across America move from the dependence on a welfare check to the independence of a paycheck.”

The 1996 TANF law expired on Oct. 1, 2002, and is operating under an extension. President Bush's proposal to reauthorize TANF takes the next step in welfare reform by strengthening work requirements, providing the assistance families need to advance in their careers and granting states more flexibility to run successful programs.

The welfare reform law creating TANF was enacted on Aug. 22, 1996. During that month, 12,242,125 individuals and 4,408,508 families were receiving welfare aid. Since then:

• Welfare rolls have dropped 60.7 percent for individuals and 54.7 percent for families.
  
• The child poverty rate has dropped from 20.5 percent to 17.6 percent.
  
• The poverty rate for African-American children has dropped from 39.9 percent to 33.6 percent.
  
• The poverty rte for Hispanic children has dropped from 40.3 percent to 29.7 percent.
  

Over the past few recessions, the poverty rate has consistently dropped as the unemployment rate drops. Secretary Thompson said experts expect that trend to continue this year with job creation accelerating under President Bush -- nearly 1.7 million jobs created since August 2003 and 12 straight months of job gains. The current 5.4 percent unemployment rate is below the average for the 1970s, 1980s and 1990s.

“This is an extraordinary milestone in the Bush Administration’s effort to help families leave public assistance and escape poverty,” said Dr. Wade F. Horn, HHS assistant secretary for children and families. “As our economy continues to grow, more Americans are leaving welfare, entering the workforce and becoming part of the economic mainstream.”

To view the state-by-state data, go t http://www.acf.hhs.gov/news/press/2004/TANF_data04.htm.