FOR IMMEDIATE RELEASE:
Monday, Aug. 14, 1995
Contact: Michael Kharfen (202) 401-9215
HHS APPROVES MARYLAND WELFARE WAIVER
HHS Secretary Donna E. Shalala today approved "Family Investment
Program," a statewide welfare demonstration project for Maryland.
About two-thirds of all the states have now received welfare waivers
under the Clinton administration.
"Even as Congress postpones action
on welfare reform, the Clinton administration proceeds with its pledge
to give states the flexibility to end welfare as we know it," said
Secretary Shalala. "Under Governor Parris Glendening's leadership,
Maryland follows the President's goal of moving people from welfare
to work and promoting
parental responsibility."
Under a pilot demonstration in Anne
Arundel and Prince George's counties and parts of Baltimore, able-bodied
Aid to Families with Dependent Children (AFDC) applicants must participate
in job search as a condition of eligibility. If a recipient fails to
comply with
the Job Opportunities and Basic Skills Training (JOBS) program for six
months, the case will be closed resulting in denial of AFDC benefits
for all members of the family. The case will be reopened if the parent
complies with JOBS requirements for 30 days. For
closed cases, the state will provide funds for non-cash transitional
assistance, such as child care, to a third party, such as a non-profit
organization, to help the family for up to three months.
In the pilot area, families facing a
short-term financial crisis can receive a one-time payment equal to
three months of benefits rather than applying for AFDC. If later, a
family applies and receives AFDC, the one-time payment will be deducted
from their
benefits.
Under the pilot, the income of dependent
children will not be counted in determining AFDC eligibility, and the
resource and vehicle value limits will be raised to $5,000. AFDC eligibility
will be extended to two-parent families by allowing the principal
wage earner to work more than 100 hours a month. Parents who do not
cooperate with child support or family parenting will have benefits
reduced. They will still be able to receive child care and JOBS services.
In the statewide portion of the demonstration,
unmarried minor parents must reside with a parent or guardian, with
some exceptions, who will serve as protective payee for the AFDC benefit.
Minor parents must also attend family health and parenting classes.
Maryland, statewide, will eliminate
automatic benefit increases for additional children conceived while
receiving AFDC. However, the family can retain child support payments
for the additional child, and the state will issue voucher payments
for the purchase of goods for the child, up to the amount of the increase
the family would otherwise receive.
"Maryland combines innovative features
of preventing welfare dependency, using strong incentives and sanctions
for work, and requiring responsibility from teen parents," said
Mary Jo Bane, assistant secretary for children and families. "This
demonstration will give the country another opportunity to learn how
to turn a welfare check into a paycheck."
The project will operate for 2 years
and 9 months, and will include a rigorous evaluation.
###
Note: All HHS press releases, fact sheets and other press materials
are available at http://www.hhs.gov/news.
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