S. HRG. 109–773 EXPLORING WAYS TO ELIMINATE PENALTIES FOR MARRIAGE FOR LOW-INCOME FAMILIES HEARING BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE ONE HUNDRED NINTH CONGRESS SECOND SESSION SPECIAL HEARING MAY 3, 2006—WASHINGTON, DC Printed for the use of the Committee on Appropriations ( Available via the World Wide Web: http://www.gpoaccess.gov/congress/index.html U.S. GOVERNMENT PRINTING OFFICE 27–921 PDF WASHINGTON : 2007 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 COMMITTEE ON APPROPRIATIONS THAD COCHRAN, Mississippi, Chairman TED STEVENS, Alaska ROBERT C. BYRD, West Virginia ARLEN SPECTER, Pennsylvania DANIEL K. INOUYE, Hawaii PETE V. DOMENICI, New Mexico PATRICK J. LEAHY, Vermont CHRISTOPHER S. BOND, Missouri TOM HARKIN, Iowa MITCH MCCONNELL, Kentucky BARBARA A. MIKULSKI, Maryland CONRAD BURNS, Montana HARRY REID, Nevada RICHARD C. SHELBY, Alabama HERB KOHL, Wisconsin JUDD GREGG, New Hampshire PATTY MURRAY, Washington ROBERT F. BENNETT, Utah BYRON L. DORGAN, North Dakota LARRY CRAIG, Idaho DIANNE FEINSTEIN, California KAY BAILEY HUTCHISON, Texas RICHARD J. DURBIN, Illinois MIKE DEWINE, Ohio TIM JOHNSON, South Dakota SAM BROWNBACK, Kansas MARY L. LANDRIEU, Louisiana WAYNE ALLARD, Colorado J. KEITH KENNEDY, Staff Director TERRENCE E. SAUVAIN, Minority Staff Director SUBCOMMITTEE ON THE DISTRICT OF COLUMBIA SAM BROWNBACK, Kansas, Chairman MIKE DEWINE, Ohio MARY L. LANDRIEU, Louisiana WAYNE ALLARD, Colorado RICHARD J. DURBIN, Illinois THAD COCHRAN, Mississippi (ex officio) ROBERT C. BYRD, West Virginia (ex officio) Professional Staff MARY DIETRICH KATE ELTRICH (Minority) Administrative Support LASHAWNDA SMITH (II) CONTENTS Page Opening Statement of Senator Sam Brownback ................................................... 1 Statement of Senator Wayne Allard ...................................................................... 3 Statement of Hon. Wade F. Horn, Ph.D., Assistant Secretary for Children and Families, Administration for Children and Families, Department of Health and Human Services ............................................................................... 4 Prepared Statement ......................................................................................... 6 Statement of Ron Haskins, Senior Fellow and Co-Director, Center on Chil- dren and Families, The Brookings Institution .................................................. 9 Prepared Statement ......................................................................................... 11 Statement of C. Eugene Steuerle, Senior Fellow, The Urban Institute .............. 20 Prepared Statement ......................................................................................... 23 Statement of Kate Jesberg, Director, Department of Human Services, District of Columbia ........................................................................................................... 42 Prepared Statement ......................................................................................... 43 Statement of Curtis Watkins, President, East Capitol Center for Change, Washington, DC ................................................................................................... 45 Prepared Statement ......................................................................................... 46 Statement of Saundra Graham, District of Columbia .......................................... 47 Prepared Statement ......................................................................................... 48 Statement of Winston Graham, District of Columbia .......................................... 50 (III) EXPLORING WAYS TO ELIMINATE PENALTIES FOR MARRIAGE FOR LOW-INCOME FAMILIES WEDNESDAY, MAY 3, 2006 U.S. SENATE, SUBCOMMITTEE ON THE DISTRICT OF COLUMBIA, COMMITTEE ON APPROPRIATIONS, Washington, DC. The subcommittee met at 10:07 a.m., in room SD–124, Dirksen Senate Office Building, Hon. Sam Brownback (chairman) presiding. Present: Senators Brownback and Allard. OPENING STATEMENT OF SENATOR SAM BROWNBACK Senator BROWNBACK. Call the hearing to order. Thank you all for joining us this morning. By all accounts, and according to all available research, children do best when they grow up in homes with their married biological parents. It doesn’t seem like we should need, or have, to state that, but that is what the sociological data says, and it’s something of importance for us, as policymakers, to see that children, as many as possible, grow up in the best possible setting. They are generally healthier, happier, and have brighter futures than children who grow up with only one parent. Statistics tell a compelling story. Children raised by married par- ents are three times less likely to repeat a grade in school, five times less likely to have behavioral problems, half as likely to be depressed, three times less likely to use illicit drugs, half as likely to become sexually active as teenagers, and are seven times less likely to live in poverty. A compelling picture. Given the enormous benefits that accrue to children who are reared by their married parents, it is a moral and societal impera- tive that we esteem, support, foster, and, indeed, encourage the in- stitution of marriage. But sadly, governmental policies have actu- ally conspired to do just the opposite. Certain programs created in the 1960s had the unintended con- sequence of discouraging marriage by providing financial incentives for low-income parents to never get married. These policies made it economically rational for a low-income mother to remain single and unemployed, rather than to get married. Three decades of these incentives have wrought the significant and tragic result for our children. Fully 35 percent of all babies born today in America are born to single mothers. This compares to just 4 percent in 1960. Certainly, there are many single mothers who are heroically and successfully raising children on their own. They deserve our respect (1) 2 and support. But it also is an indisputable fact that a father and a mother bound together in marriage provide the best environment in which to raise healthy children. As a society, and as a govern- ment, we should strive to foster what is the very best for our chil- dren. But government policies have often done just the opposite. Although the 1996 Welfare Reform Act attempted to remove the incentives for parents to remain unmarried, unwed birth rates have continued to increase. In fact, Government policies often con- tinue to penalize low-income couples with children who decide to get married. Today, we’re delighted to have Dr. Wade Horn here, Assistant Secretary for Children and Families at the U.S. Department of Health and Human Services. He will unveil a new tool, called a ‘‘marriage calculator,’’ which will show low-income couples with children just how significant the penalties are if they decide to get married. This new resource should help us examine ways that tax and benefit transfer policies could be reformed to eliminate mar- riage penalties. And I want to note here, we’ve spent quite a bit of time in Con- gress eliminating, and working on eliminating, penalties to mar- riage in the Tax Code. We’ve spent far too little time in Congress working on ways to eliminate the penalties to marriage in the transfer code, or in the areas of support. And what I hope to start with this hearing is us working more on that side of the equation. We’ve worked on the tax side of it. We need to work on the transfer side of it, as well. Obviously, there’s something wrong with a system that penalizes couples for doing the right thing for their children and for them- selves. Rather than providing financial penalties for marriage, I be- lieve that we should help low-income married couples gain stronger financial security. Financial security can help sustain a healthy marriage. As a way to help low-income married couples gain appreciable assets here in the District of Columbia, we just began a pilot new federally funded marriage development accounts (MDAs). I’ve got a brochure here, ‘‘Saving and Prospering Together,’’ that was devel- oped by one of the groups, and they’re launching a campaign here in the District to promote this program. There was a nice article in USA Today, the Lifestyle section, April 27, on these financial in- centives to wed. As a way to help low-income married couples gain appreciable assets, we did start these marriage development accounts. They’re available to low-income married couples who are citizens or legal residents of the District, and who have very low net worth. Couples may save money to buy a home, pay for job training or education, or start their own businesses. They’ll have a high incentive to save, because their contributions will be matched at a ratio of 3 to 1 by the Federal Government and partnering private institutions. As a requirement of participation, couples will receive training to help them repair their credit, set a budget and savings schedule, and manage their money. They’ll also receive a bonus for receiving mar- riage counseling. Just last Thursday, as I noted, leaders from the faith community and nonprofit organizations launched the program ‘‘Together is 3 Better’’ to strengthen marriages here in the District, with MDAs of- fered as an important tool to help low-income married and engaged couples put their lives