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The Honolulu Advertiser
Posted on: Thursday, September 4, 2003

Fewer Americans receiving welfare

 •  Hawai'i families on welfare drop 12 percent

By Nancy Zuckerbrod
Associated Press

WASHINGTON — The number of people receiving welfare is declining, government statistics show.

The Health and Human Services Department said yesterday that the number of individuals on welfare dropped by more than 4 percent between March 2002 and March 2003, to about 5 million people.

The number of families receiving welfare fell about 2 percent, to a little more than 2 million.

Congress significantly overhauled the welfare system in 1996, allowing states to impose tough new rules on recipients. Since then, there has been about a 60 percent reduction in individuals, and almost a 54 percent reduction in families, receiving assistance, the government said.

The Virgin Islands saw the biggest decrease — 41 percent among individuals — followed by Illinois, with a 28 percent drop. Maine had the biggest increase to its welfare rolls, at 42 percent.

People stop receiving welfare for various reasons. They might find work, be supported by a spouse or reach state-imposed limits on eligibility for welfare.

The government did not offer a breakdown yesterday explaining the latest declines.

Wade Horn, assistant Health and Human Services secretary for children and families, said the agency should have a breakdown by year's end.

But he called it "very reasonable" to conclude that most people who got off welfare got jobs, based on studies. "What those studies have shown in the past is that most people leave because of increased earnings," he said.

Critics were skeptical, citing high unemployment. The jobless rate was 6.2 percent in July, a nine-year high. The August rate will be released tomorrow.

"It's alarming news, not good news, because we know that needs are rising," said Arloc Sherman, a senior researcher at the Children's Defense Fund in Washington.

Congress is working to renew the 1996 welfare law. The House has approved a bill, endorsing changes proposed by the Bush administration. The Senate has not followed suit, requiring the 1996 law to be extended several times to keep the program running.

The administration's proposal would require states to impose tougher work requirements on welfare recipients. Senate Democrats say the president's proposal doesn't provide enough money for child care.