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:
In one sense, Ohio could be seen as an example of exactly what welfare reform intended: to give states flexibility to spend their welfare funds in the area of greatest need. In 2014, the state spent the greatest portion of its welfare dollars on child care — 36 percent, or $400 million. On the other hand, a much smaller percentage of its welfare funds goes toward work programs — less than 8 percent, or $85 million.
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 Ohio, 89 received cash welfare. By 2016, just 17 families received TANF assistance for every 100 families with children in poverty.
