Introductory Statement on S. 367
Mr. President, I am proud to re-introduce a bill that reauthorizes the landmark welfare reform legislation passed in 1996. It is basically the same bill as I introduced in the last Congress and it is designed to allow States to continue…
Mr. President, I am proud to re-introduce a bill that reauthorizes the landmark welfare reform legislation passed in 1996. It is basically the same bill as I introduced in the last Congress and it is designed to allow States to continue the important work to promote work and personal responsibility. This reauthorization bill is designed to allow States to continue to provide the flexible initiatives that have reduced national welfare caseloads by over 50 percent and moved millions of Americans from welfare to work.
Welfare reform was a bold experiment to dramatically change a major social program. In 1996, Congress ended the entitlement of eligible families with children to cash aid. The results five years later are impressive. Over two-thirds of the people who are leaving the welfare rolls have left for work.
Seven years ago, we agreed that the bipartisan goal of welfare reform should be to promote work and to protect children. We stood here together,
on unchartered ground, and endorsed significant policy changes that we believed would help families gain independence and economic self- sufficiency, while protecting the children. States began to revise welfare service delivery with guidance based on the new reforms. Each State designed and implemented programs that were unique and specific to their populations. While the results have been mixed, I believe that encouraging progress has been made. The challenge this year will be to continue to build on our foundation, and be sensitive to the current economic situation and the fiscal crisis States face today.
When we started welfare reform, we had a strong economy. Now, States are struggling and most of their reserves are gone. I believe we can continue the progress of welfare reform, but I strongly believe we must provide the key investments that help welfare parents make a successful transition from welfare to work, including increasing child care funding.
In West Virginia, welfare reform has brought bold changes. Parents on welfare get extra support as they face new responsibilities and obligations to make the transition from welfare to jobs. In 2001, I hosted a roundtable discussion to meet with individual West Virginians who were undergoing major life transitions. They told me that they were proud to be working, but that it was often still a struggle to make ends meet and do the best for their children. The goal of this legislation is to help those parents, and millions more, to promote the well-being of their children, even as they work.
Today, I am introducing the Personal Responsibility and Work Opportunity Reconciliation Act Amendments of 2003. States need help to continue making progress. We should continue to build on this foundation, and not reduce state flexibility. It is essential that we continue welfare reform, not unravel it, or restructure it.
This bill acknowledges that we must keep the focus on work, by both requiring and rewarding work. To ensure a real focus on helping parents leave welfare rolls for a job, this legislation gradually replaces the caseload reduction credit with an employment credit, designed by Senator Lincoln of Arkansas and Congressman Levin of Michigan. Under this important provision, States will only get a bonus toward their work participation requirement if parents move from welfare to a job. This credit will acknowledge the dignity of all work by providing a bonus for parents who get jobs, both full and part-time. A mother who has never worked in her life and then gets a part-time job has achieved a true accomplishment, and that deserves recognition. It is also the first step toward independence. It is an empowering approach to promoting work and sends the proper message to families who are striving to become self sufficient. I am pleased to incorporate their proposal into my bill, and I look forward to working with them closely throughout the welfare debates during this Congress to develop an employment credit that truly rewards work.
At this point, with a soft economy, I believe it is unwise to significantly change State TANF programs to impose drastically higher work participation rates requiring 40 hours per week of work and activities. Such changes, as suggested by the Administration, would double the work requirement for mothers with children under the age of 6, and that does not seem right. Increasing work requirement without new funding for child care, transportation, and job placement activities would be, plain and simple, an unfunded mandate. It could hinder state efforts to move parents into private sector jobs. It could undermine our progress.
State officials have testified before the Finance Committee that such changes would force states to restructure existing programs that are working and turn their focus away from those who need some assistance with child care or transportation, but are no longer dependent on a welfare check. We should not cut back on necessary child care and work supports for working families who are following the rules we set in 1996.
This comprehensive welfare reform bill makes the right investments. It invests $5.5 billion more in child care, which is the amount supported by the Finance Committee in a bipartisan vote last June.
This bill also increases funding for the basic TANF block grant by $2.5 billion because of state need. It provides full funding for the Social Services at $2.8 billion, which was promised to the states in 1996. My bill also would expand and increase the supplemental grants to help the states with high growth and high poverty deal with the challenges of welfare reform. With these new investments, states will be able to increase investment in the fundamental work supports like child care, transportation, and training, that help a parent succeed in moving from welfare to work. States would have flexibility in allocating the new resources, but I believe much of the funding can and will be directed into child care, which is a major priority.
This bill would continue the transitional Medicaid program so families can keep health care coverage for a year as they move from welfare to work. In 1996, I was proud to work with Senator Breaux and the late Senator John Chafee to protect access to health care for such vulnerable families. I have incorporated Senator Breaux's bipartisan bill to continue transitional Medicaid coverage, and I appreciate his leadership on this and other key issues. Our bill also gives states more flexibility and options to place parents in vocational training and English as a Second Language programs, so parents can get real jobs. In recognition of Maine's success with the Parents as Scholar program, States have the option to follow the Maine model for 5 percent of their caseload to combine work and education.
The bill also invests $200 million to create BusinessLink Grants, competitive grants to support public and private partnerships to help parents get jobs. The Welfare-to-Work Partnership is just one example of how nonprofits working with business leaders can make a real difference. The Partnership includes over 20,000 businesses that have provided more than 1 million jobs to parents moving from welfare to work. I have met with the board members of this group, and we should encourage such partnerships. I know that other groups, like the Salvation Army and Good Will, are doing important work on providing transitional job opportunities, and these organizations would be eligible for grants as well.
A job is the first step, but for welfare parents to make a successful transition to independence, they need a range of supports. To achieve this goal, the bill will create Pathways to Self-Sufficiency Grants to improve the support network for parents. These grants are intended to provide incentives and support to TANF caseworkers and nonprofit organizations to help improve the comprehensive network of supports for working families, including Medicaid, CHIP, child care, EITC, and a range of services. Working mothers deserve to know what type of support will be available so that they do not slip back into welfare.
Work is fundamental, but we also need to be concerned about important aspects of the lives of families and children. This legislation creates a Family Formation Fund to encourage healthy families, reduce teenage pregnancy, and improve child support and participation of parents in children's lives. The bill seeks to end certain discrimination and harsh rules for two-parent families in the current system. If our goal is to support marriage, we should not penalize married couples.
Our legislation also makes a simple, but important change. Under the current TANF program, each welfare parent has an Individual Responsibility Plan that serves as an assessment and work plan. In addition to having a responsibility to work, parents have a responsibility to protect their children's well-being. To emphasize this fundamental point, this bill adds language directing states to incorporate the concept of a child's well-being into each parent's Individual Responsibility Plan. States have great flexibility, but it is important to send a clear message that one of a parent's responsibilities is the well-being of their children.
This legislation builds on the foundation of the 1996 Personal Responsibility and Work Opportunity Reconciliation Act. My hope is that this framework will help promote bipartisan discussion about how we can make even more improvements in our welfare system,
while maintaining our partnership with the States, particularly at this time of severe fiscal problems in our States.