[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Extensions of Remarks]
[Pages 216-217]
[From the U.S. Government Publishing Office, www.gpo.gov]




         INTRODUCTION OF THE NEXT STEP IN REFORMING WELFARE ACT

                                 ______
                                 

                        HON. BENJAMIN L. CARDIN

                              of maryland

                    in the house of representatives

                       Thursday, January 24, 2002

  Mr. CARDIN. Mr. Speaker, our work in helping people move from welfare 
to employment, and from poverty to a better way of life, is far from 
done. We must continue the progress States have made in promoting 
employment among welfare recipients, while also increasing our focus on 
job advancement and poverty reduction. To achieve these goals, I am 
introducing the Next Step in Reforming Welfare Act to reauthorize and 
improve the Temporary Assistance for Needy Families (TANF) program and 
to enhance several related programs. I am proud to be joined by my 
Democratic colleagues on the Ways and Means Subcommittee on Human 
Resources, Representatives Stark, Levin, McDermott and Doggett, in 
sponsoring this important legislation.
  As we approach the reauthorization of TANF, it is important to 
acknowledge the progress our Nation has made over the last six or seven 
years in reducing poverty and other critical social problems. For 
example, the percentage of children living in poverty in the United 
States has dropped to its lowest level since 1979. Unfortunately, even 
with that improvement, one out of every six children still lives in 
poverty.
  Three developments are primarily responsible for these positive 
changes in the poverty rate. First, until recently, we have seen nearly 
unprecedented economic growth. Second, the work supports put in place 
by Congress, particularly the 1993 increase in the Earned Income Tax 
Credit, are now paying important dividends. And third, welfare reform 
has encouraged more low-income mothers to enter the workforce.
  As impressive as these poverty reductions have been over the last few 
years, they pale in comparison to the decline in the welfare rolls over 
the same time period. This raises some troubling issues, not the least 
of which is the fact that many families are not leaving poverty when 
they leave welfare for work. Additionally, some families at the very 
bottom of the income scale may have lost ground over the last 5 years 
because of a reduction in various forms of public assistance.
  This should raise a basic question for every Member of this body: is 
caseload reduction a goal unto itself, or is it a means to an end? I 
believe it must be the latter. In other words, we want people to leave 
welfare so they can lift their families out of poverty. To achieve that 
objective, we must continue the expectation that welfare recipients 
move toward employment. But at the same time, we must do more to help 
them escape poverty and move up the economic ladder. Both of these 
goals will undoubted be made more difficult by a slowing economy that 
is now shedding more jobs than it is creating. In fact, the current 
recession raises the stakes on our efforts since many recent welfare 
leavers may lose ground in their fight to escape poverty and current 
welfare recipients may find it even harder to leave the rolls for work 
unless we make some necessary improvements to TANF.
  At its core, the Next Step in Reforming Welfare Act is driven by a 
philosophy that we should help people escape poverty through hard work. 
The TANF program is not, nor should it be, our only weapon to achieve 
this goal, but it must be an important part of our arsenal. Here are 
the eight steps our legislation would pursue to improve TANF and 
several other important poverty-related programs.
  First, the legislation would maintain our financial commitment to the 
TANF program by increasing the current annual $16.5 billion allocation 
by an inflation adjustment in coming years. Such an increase is 
necessary to stop the continual erosion in the real value of the 
States' TANF grants (which will be worth 22 percent less in FY 2007 
compared to FY 1997 unless adjustments are made). Of course, some may 
suggest we should cut funding because of declines in TANF's cash 
caseload. However, three facts are in conflict with such a suggestion: 
(1) there are still many unmet needs that demand significant resources; 
(2) an increasing amount of TANF funds are spent on work supports, 
rather than on direct cash assistance; and (3) the current recession 
will present new challenges to our welfare system. In addition to 
prospectively increasing the TANF grant for inflation, the bill would 
improve and extend the current supplemental grants for States with low 
Federal funding per poor child, the annual work-based performance 
bonuses and the contingency fund, which would be redesigned to provide 
real assistance to State TANF programs during economic downturns.
  Second, the bill would include poverty reduction as an explicit goal 
in the welfare reform law, and States should be given financial

[[Page 217]]

bonuses if they reduce child poverty. Broadening the goals of TANF and 
providing financial bonuses would encourage States to consider 
developing new approaches and providing additional assistance to help 
struggling families. Furthermore, under the bill, a conciliation 
process would be required before a TANF recipient's benefit can be 
sanctioned, funding for the Social Services Block Grant would be 
restored to $2.8 billion a year, and the current caseload reduction 
credit would be replaced with an employment credit, which would reward 
States for moving people from welfare to work, rather than for people 
simply exiting welfare.
  Third, the current requirement that TANF recipients be working or 
enrolled in related employment activities would be continued. However, 
additional incentives and rewards for work would be established, 
including not counting TANF payments to recipients' with earnings 
towards the five-year time limit (such payments would be considered 
wage subsidies). The legislation also would make a dramatic new 
investment in the Child Care and Development Block Grant (an additional 
$11.25 billion over 5 years) to ensure that both welfare leavers and 
the working poor have access to quality and affordable day care.
  Fourth, State TANF plans would have to include goals for improving 
earnings for TANF recipients and leavers, and new demonstration 
projects ($150 million per year) would be established to increase wages 
for low-wage workers and to improve employment outcomes for welfare 
recipients with multiple barriers. Additionally, to promote the skills 
needed for employment advancement, the legislation would eliminate the 
current cap on the number of TANF recipients who can be enrolled in 
vocational education and still count towards the participation 
requirement.
  Fifth, the bill would take a series of step to encourage family 
formation and responsible parenting. For example, the measure would 
create a new fund ($100 million a year) to promote the best practices 
on promoting the formation of two-parent families, reducing teenage 
pregnancy, and helping low-income, non-custodial parents support their 
children. Furthermore, the legislation would encourage States to pass 
through more child support to families, rather than retaining those 
collections to recoup past welfare costs.
  Sixth, the legislation would revise the harsh immigrant provisions in 
the 1996 law by restoring TANF and Supplemental Security Income (SSI) 
eligibility to non-citizens who are legally residing in the country 
(with a requirement that their sponsor's income be deemed available to 
them for a certain period of time).
  Seventh, the bill would maintain State accountability under TANF by 
extending the current maintenance-of-effort requirement (plus an 
inflation increase), and by requiring States to generally use Federal 
funds to supplement, rather than replace, State funding in various low-
income programs.
  Eight and finally, the measure would call for increased information 
about State TANF programs and about the status of welfare leavers.
  Mr. Speaker, I believe we can pursue these eight goals while 
maintaining the State general discretion to tailor their own TANF 
policies. Furthermore, I am hopeful these suggestions can attract 
bipartisan support on the basis that promoting work and reducing 
poverty are goals that hopefully draw near universal approval. I look 
forward to working with the Administration and with all of my 
colleagues on a TANF reauthorization bill designed to reward work, 
reduce poverty, and increase self-sufficiency.

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