Declining Caseloads/ Increased Work: What Can We Conclude about theEffects of Welfare Reform?

In 1996, Congress passed the Personal Responsibility andWork Opportunity Reconciliation Act, or PRWORA, whichsubstantially restructured public assistance programs.PRWORA gave states almost entire discretion to design andoperate cash assistance programs for families with children,reducing the role of the federal government in programoperation and regulation. The federal government didcontinue to help states fund these programs through the newlycreated Temporary Assistance for Needy Families (TANF)block grant. In addition, the federal government required statesto move an increasing share of their caseloads into work andalso, for the first time in history, implemented time limits onhow long most families could receive TANF-funded assistance.[...]