Working to Control the Spendthrift Administration
The Welfare Reform Restoration Act, introduced by RSC Chairman Tom Price and the RSC’s Budget and Spending Taskforce Chairman Jim Jordan, repeals a provision in the so-called “stimulus” bill that threatens to undo the impact of the 1996 welfare reform law. Welfare reform replaced a system that rewarded states with more federal money as they increased their welfare caseloads to one that gave states a flat funding level. Since enactment of that law, welfare caseloads have fallen by 65%.
Without much debate, Section 2101 of the Economic Recovery and Reinvestment Act of 2009 (the so-called “stimulus”) threatens to undo this progress made over the last 12 years. This section of the “stimulus” creates a $5 billion “emergency fund” for the Temporary Assistance for Needy Families (TANF) program, and attaches strings in order for a state to receive funding that are rigged in favor of expanding welfare caseloads. Specifically, a state has to increase its welfare caseloads in order to receive any funding, and states receive an 80% match to cover all expenses associated with increasing their welfare caseloads. This provision in the “stimulus” bill would recreate one of the worst features of the previous Aid to Families with Dependent Children (AFDC) program—the incentives for states to increase their welfare caseloads.
H.R. 1277, the Welfare Reform Restoration Act, introduced by RSC Chairman Tom Price and the RSC’s Budget and Spending Taskforce Chairman Jim Jordan, repeals section 2101 of the “stimulus” bill, thus restoring the foundation of the 1996 welfare reform law.
Update: Republican Whip Leader Eric Cantor recently launched YouCut, a program that allows the American people to cast votes on which spending programs they want eliminated. Within one week, over 275,000 people voted to eliminate the TANF program. The RSC issued this press release on America's decision to cut the programs, which costs taxpayers over $2.5 billion a year. Chairman Price announced the victory on the YouCut website. The initiative was brought to the House floor on May 20, 2010.
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