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Work and Welfare. Prepared for the Subcommittee on Employment and Productivity of the Committee on Labor

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Work and Welfare. Prepared for the Subcommittee on Employment and Productivity of the Committee on Labor DOCUMENT RESUME ED 275 784 UD 025 201 AUTHOR Malone, Margaret TITLE Work and Welfare. Prepared for the Subcommitteeon Employment and Productivity of the Committee on Labor and Human Resources and the Subcommittee on Social Security and Income Maintenance of the Committeeon Finance, United States Senate, 99th Congress, 2nd Session. INSTITUTION Congress of the u.s., Washington, D.C. Senate Committee on Finance.; Congress of the U.S., Washington, D.C. Senate Committee on Labor and Human Resources. REPORT NO Senate-Prt-99-177 PUB DATE Aug 86 NOTE 169p. AVAILABLE FROMSuperintendent of Documents, Congressional Sales Office, U.S. Government Printing Office, Washington, DC 20402. PUB TYPE Legal/Legislative/Regulatory Materials (090) EDRS PRICE MF01/PC07 Plus Postage. DESCRIPTORC Employment Opportunities; *Employment Programs; Family Income; Federal Aid; *Federal Legislation; *Federal Programs; *Government Role; Poverty Programs; United States History; *Welfare Recipients IDENTIFIERS *Aid to Families with Dependent Children; Congress 99th ABSTRACT This report chronicles the history of the Federal role in welfare programs and training and employmentprograms since the New Deal. Part I presents a chronologicalsummary of legislative action since 1935 and briefly discusses some major issuesthe Congress has tried to resolve, including: whether Aid to Families with Dependent Children (AFDC) recipients should betreated as employable; how employment and training programs should be administered and what they should provide; and how children of working parents can be assured of adequatecare. A lack of congressional consensus on these issues has led to bitter debate, administrative confusion, and a lack of policy coherence.Part II discusses the following topics in greater detail: (1)enactment of a program of aid to dependent children; (2) adoption of the concept of "self-support"; (3) "unemployed parents" introduced to theprogram; (4) the public welfare amendments of 1962; (5) expansion ofthe work incentive concept; (6) enactment of the work incentive (WIN)program; (7) welfare reform and welfare expansion duringthe Nixon era; (8) legislation for employment-related demonstration projects; (9) Carter's welfare reform proposal--basic issuesreemerge; (10) efforts to authorize job search and changes in the WINprogram; and (11) the Reagan Administration--renewed emphasis on work requirements. Appendices provide data on work programs, characteristicsof AFDC recipients, AFDC enrollment and benefits, the general populationof mothers in the labor force and the status of children, and selected employment and training programs for AFDC recipients. (KE) if.464 99th Congress S. PET. JOINT COMMITTEE PRINT 2d Session 99-177 WORK AND WELFARE PREPARED FOR THE SUBCOMMITTEE ON EMPLOYMENT AND PRODUCTIVITY OF THE COMMITTEE ON LABOR AND HUMAN RESOURCES AND THE SUBCOMMITTEE ON SOCIAL sEcuRrrY AND INCOME MAINTENENCE OF THE COMMITTEE ON FINANCE UNITED STATES SENATE U.S. DEPARTMENT OF EDUCATION "PERMISSION TO REPRODUCE THIS Office of Educational Research and Improvement MATERIAL HAS BEEN GRANTED BY EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) Villa document has been reproduced as /As. apo received from the person or organization originating O Minor changes have been made to improve reproduction Quality Points of view or opinions stated in this docu- ment do not necessarily represent official TO THE EDUCATIONAL RESOURCES OERI position or policy AUGUST 1986 INFORMATION CENTER (ERIC)." Printed for the use of the Committee on Labor and Human Resources and the Committee on Finance A U.S. GOVERNMENT PRINTING OFFICE 61-655 0 WASHINGTON : 1988 For sale by the Superintendent of Documents, Congressional Sales Office U.S. Government Printing Office, Wuhington, DC 20402 BEST COPYAVAILABLE 2 COMMITTEE ON LABOR AND HUMAN RESOURCES ORRIN G. HATCH, Utah, Chairman ROBERT T. STAFFORD, Vermont EDWARD M. KENNEDY, Massachusetts DAN QUAYLE, Indiana CLAIBORNE PELL Rhode Island DON NICKLES, Oklahoma HOWARD M. METZENBAUM, Ohio PAULA HAWKINS, Florida SPARK M. MATSUNAGA, Hawaii STROM THURMOND, South Carolina CHRISTOPHER J. DODD, Connecticut LOWELL P. WEICKER, JR., Connecticut PAUL SIMON, Illinois MALCOLM WALLOP, Wyoming JOHN F. KERRY, Massachusetts CHARLM a GRASSLEY, Iowa HAYDEN G. BRYAN, Staff Director THOMAS M. Rouarts, Minority Staff Director/Chief Counsel SUBCOMMITTEE ON EMPLOYMENT AND PRODUCTIVITY DAN QUAYLE, Indiana, Chairman PAULA HAWKINS, Florida PAUL SIMON, Illinois ORRIN G. HATCH, Utah CLAIBORNE PELL Rhode Island CHARLES E. GRASSLEY, Iowa CHRISTOPHER J. DODD, Connecticut EDWARD M. KENNEDY, Massachusetts (Ex Officio) Hum E. BRAND, Professional Staff Member Wn.wass A. BLAKEY, Minority Counsel COMMITTEE ON FINANCE BOB PACKWOOD, Oregon, Chairman ROBERT J. DOLE, Kansas RUSSELL B. LONG, Louisiana WILLIAM V. ROTH, JR., Delaware LLOYD BENTSEN, Texas JOHN C. DANFORTH, Missouri SPARK M. MATSUNAGA, Hawaii JOHN H. CHAFEE, Rhode Island DANIEL PATRICK MOYNIHAN, New York JOHN HEINZ, Pennsylvania MAX BAUCUS, Montana MALCOLM WALLOP, Wyoming DAVID L. BOREN, Oklahoma DAVID DURENBERGER, Minnesota BILL BRADLEY, New Jersey WILLIAM L ARMSTRONG, Colorado GEORGE J. MITCHELL, Maine STEVEN D. SYMMS, Idaho DAVID PRYOR, Arkansas CHARLES E. GRASSLEY, Iowa WILLIAM DDIFIINDERFER, Chief of Staff WILLIAM J. W =Ns, Minority Chief Counsel SUBCOMMITTEE ON SOCIAL SECURITY AND INCOME MAINTENANCE PROGRAMS WILLIAM L. ARMSTRONG, Colorado, Chairman JOHN C. DANFORTH, Missouri DANIEL PATRICK MOYNIHAN, New York DAVID DURENBERGER, Minnesota DAVID PRYOR, Arkansas RUSSELL B. LONG, Louisiana (II) 3 t-1 )AlsA tl ) Isv..7A.;!ttvi, FOREWORD This committee print is designedto give some background for the joint hearings of the Sub...ommitteeson Employment and Produc- tivity and Social Security and IncomeMaintenance on the general subject of "Work and Welfare." The Congress and successiveAdministrations have struggled with this issue for the last thirtyyears. The legislative history of this struggle is both fascinating andfrustrating and we are fortu- nate that Margaret Malone consentedto write the story forus. Ms. Malone is not only an expert in thefield but was alsoan active participant in many of the developmentsthat are described. This print also containsa compilation of statistics (supplied by the Departments of HHS andLabor) relevant to a consideration of the issue. I commend the printto any of my colleagues interested in pursuing solutions to the workand welfare issuebecause they will find that thereare few solutions that have not already been enacted and even fewer that havenot already been suggested. DAN QUAYLE. I. LETTER OF TRANSMITTAL 2Cnifeb Vales Zeno le WMWMOTOKPC August, 1906 Honorable Orrin G. Hatch Chairman Committee on Labor and Human Resources United States Senate Washington, D.C. 20510 Honorable Bob Packwood Chairman Committee on Finance United States Senate Washington, D.C. 20510 Dear Chairman Hatch and Chairman Packwood: This report has been prepared by Mbrgaret'Malonefor the joint use of the Subcommitteeon Employment and Productivity of the Labor and Human ResourcesCommittee and the Subcommittee on Social Security andIncome Maintenance of the Finance Committee as backgroundinformation on work and welfare programs. This report chronicles the history ofthe federal role in welfare programs and training and employmentprograms over the past thirty years. We believe you and the other members of our Committees, as wellas the general public, will find this report to be a comprehensivediscussion of changing federal pglicy in work andwelfare programs and will help us understand the issues before us as we look at reform of the welfare system. Our two subcommittees will continue to reviewcurrent programs and formulate ideas on how to improve and welfare programs. federal work We commend this document toanyone interested in work and welfareprograms. Sincerely, William L. Armstrong Dan Quay e Chairman Chairman Subcommittee on Social Subcommittee on Security and Income Employment Maintenance and Productivity (VI CONTENTS EMPLOYMENT AND TRAINING FOR WELFARE RECIPIENTS PART IAN INTRODUCTORY SUMMARYAND ANALYSIS OF LEGISLATIVE ACTION A. CHRONOLOGICAL SUMMARY OF LEGISLATIVgACTION The New Deal Division: Work for Employables, Page ables Welfare for Unemploy- 1 Early Changes in Federal ADC Policy 1 The War on Poverty 2 Creation of WIN; Work Requirements for Mothers 3 The Debate Over Nixon's Welfare ReformProposal 4 Efforts to Strengthen the WIN Program 5 Carter's Welfare Reform Proposal 5 The Comprehensive Employment and TrainingActAnother Employ- ment Alternative 6 Recent Changes in Work Programs and Work Incentives 6 B. SOME MAJOR ISSUES THE CONGRESSHAS TRIED TO RESOLVE Should AFDC Recipients Be Treatedas Employable? 8 How Should Employment and Training ProgramsBe Administered? 10 What Should Be the Nature of An Employment andTraining Program Job Search, Workfare, Classroom Training, Other? 12 How Can Children of Working Parents Be Assured ofAdequate Care? 14 C. THE PROBLEM OF LACK OF CONSENSUS 16 PART H-AFC LEGISLATION IN DETAIL A. ENACTMENT OF A PROGRAM OF AID TO The Rationale DEPENDENT CHILDREN . 18 Early State Work Requirements 19 B. ADOFTION OF THE NCEPT OF "SELF-SUPPORT" Eisenhower Administration Initiative 20 Clarifying "Self-Support" 21 C. "UNEMPLOYED PARENTS" COME INTOTHE PROGRAM 'The Rationale far the "UP" Program 22 Conditions of Eligibility 23 D. PUBLIC WELFAM AMENDMENTSOF 1962"A FRESH START" Waging War on Dependency 23 The Tools for RehabilitationServicesand Community Work and Train- ing 25 Introduction of the Idea of
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