California

Before welfare reform in 1996, states were mostly required to give cash assistance to anyone who was eligible — without work requirements or time limits. The amount of money from the federal government varied year to year based on need. After welfare reform, the government capped the program at $16.5 billion dollars. Now, states receive a block grant, and they can choose to spend their federal money as long as it fits within four categories:

• Provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;
• End the dependence of needy parents on government benefits by promoting job preparation, work and marriage;
• Prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies;
• Encourage the formation and maintenance of two-parent families.

California is among the states that has maintained a significant commitment to cash welfare. Of every 100 families living in poverty, 66 received cash assistance in 2016. It is the state’s largest category of spending, accounting for 41.2 percent of its total welfare expenditures, or $2.6 billion. California spends 76.9 percent, or $4.9 billion, of its welfare funds on the core welfare reform goals of basic assistance, work support and activities and child care. Even so, the state’s population and federal allocation are so large that relatively small categories of spending translate to significant raw numbers — for example, 9.5 percent was spent on "other" expenses, or nearly $634 million.

Source: U.S. Department of Health and Human Services. Note: Single-year labels represent two-year averages; for example '2016' represents '2015-2016'.