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:
Of every 100 families living in poverty in the state, 57 received cash assistance in 2016. Minnesota has maintained the core welfare reform goals of providing a cash benefit, support for work, and child care so that parents can find and keep jobs, a combined 54.5 percent of its total welfare funding, or nearly $317 million. However, its largest single category of spending is refundable tax credits, programs that give low-income families a cash boost for filing a tax return: 29 percent, or just shy of $170 million in 2016.
Source: U.S. Department of Health and Human Services. Note: Single-year labels represent two-year averages; for example '2016' represents '2015-2016'.
In 1996, for every 100 poor families with children in Minnesota 88 received cash welfare. By 2016, just 14 families received TANF assistance for every 100 families with children in poverty.
