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June 2006
 A Decade of Welfare Reform: Facts & Figures
In the ten years since 1996, when welfare reform legislation was
passed, the effects of the reforms have been studied. The
legislation changed Aid to Families with Dependent Children into the
Temporary Assistance for Needy Families program. The reform was
intended to end dependence on government cash assistance by
promoting job preparation and work. States were given flexibility to
implement their welfare programs.
The changes impacted low-income families in the following ways:
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Fewer families were eligible, so welfare caseloads declined
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Participation in work activities increased from 31% in 1997 but was
dependent on the health of the overall economy
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Median income among welfare participants increased, and deep poverty
(below 50% of the federal poverty line) declined by 18%
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Many former welfare recipients continue to work in low-wage jobs and
the likelihood of returning to welfare within two years of leaving
the program increased from 20% in 1997 to 26% in 2002
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