![Welfare in America](https://upload.wikimedia.org/wikipedia/commons/3/38/Welfare_in_America.png)
Social programs in the United States are programs designed to ensure that the basic needs of the American population are met. Federal and state social programs include cash assistance, health insurance, food assistance, housing
subsidies
A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the ter ...
, energy and utilities subsidies, and education and childcare assistance. Similar benefits are sometimes provided by the private sector either through policy mandates or on a voluntary basis.
Employer-sponsored health insurance
Health insurance in the United States is any program that helps pay for medical expenses, whether through privately purchased insurance, social insurance, or a social welfare program funded by the government. Synonyms for this usage include ...
is an example of this.
American social programs vary in eligibility with some, such as public education, available to all while others, such as housing subsidies, are available only to a subsegment of the population. Programs are provided by various organizations on a federal, state, local, and private level. They help to provide basic needs such as food, shelter, education, and healthcare to residents of the U.S. through
primary
Primary or primaries may refer to:
Arts, entertainment, and media Music Groups and labels
* Primary (band), from Australia
* Primary (musician), hip hop musician and record producer from South Korea
* Primary Music, Israeli record label
Works
* ...
and
secondary education
Secondary education or post-primary education covers two phases on the International Standard Classification of Education scale. Level 2 or lower secondary education (less commonly junior secondary education) is considered the second and final pha ...
, subsidies of higher education, unemployment and disability insurance, subsidies for eligible low-wage workers, subsidies for housing,
Supplemental Nutrition Assistance Program
In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for low- and no-income people. It is a federal aid program, ad ...
benefits,
pensions
A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...
, and
health insurance
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among ma ...
programs.
Social Security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
,
Medicare,
Medicaid
Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and pers ...
, and the
Children's Health Insurance Program
The Children's Health Insurance Program (CHIP) – formerly known as the State Children's Health Insurance Program (SCHIP) – is a program administered by the United States Department of Health and Human Services that provides matching funds to ...
are prominent social programs.
Research shows that U.S. government programs that focus on improving the health and educational outcomes of low-income children are the most effective, with benefits substantial enough that the government may even recoup its investment over time due to increased tax revenue from adults who were beneficiaries as children.
Veto points in the U.S. structure of government make social programs in the United States resilient to fundamental change.
Congressional funding
Not including
Social Security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
and
Medicare, Congress allocated almost $717 billion in federal funds in 2010 plus $210 billion was allocated in state funds ($927 billion total) for means tested welfare programs in the United States, of which half was for medical care and roughly 40% for cash, food and housing assistance. Some of these programs include funding for public schools, job training, SSI benefits and medicaid. , the public social spending-to-GDP ratio in the United States was below the
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
average. Roughly half of this welfare assistance, or $462 billion went to families with children, most of which are led by single parents.
Total Social Security and Medicare expenditures in 2013 were $1.3 trillion, 8.4% of the $16.3 trillion GNP (2013) and 37% of the total Federal expenditure budget of $3.684 trillion.
In addition to government expenditures, private welfare spending, i.e. social insurance programs provided to workers by employers, in the United States is estimated to be about 10% of the U.S. GDP or another $1.6 trillion, according to 2013 OECD estimates. In 2001, Jacob Hacker estimated that public and private social welfare expenditures constituted 21% and 13–14% of the United States'
GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
respectively. In these estimates of private social welfare expenditures, Hacker included mandatory private provisions (less than 1% of GDP), subsidized and/or regulated private provisions (9–10% of GDP), and purely private provisions (3–4% of GDP).
History
![Public Health nursing](https://upload.wikimedia.org/wikipedia/commons/6/61/Public_Health_nursing.gif)
The first large-scale social policy program in the United States was assistance to Union Civil War veterans and their families.
The program provided pensions and disability assistance.
From 1890 to the early 1920s, the U.S. provided what Theda Skocpol characterized as "maternalist policies", as it provided pensions for widowed mothers.
Historically, the United States has spent less on social welfare than European countries, but only in terms of gross ''public'' social welfare spending. The United States tended to tax lower-income people at lower rates, and relied substantially on private social welfare programs: "after taking into account taxation, public mandates, and private spending, the United States in the late twentieth century spent a higher share on combined private and net public social welfare relative to GDP than did most advanced economies.".
Spending varied between different states in the United States.
Federal welfare programs
Colonial legislatures and later State governments adopted legislation patterned after the English
"poor" laws. Aid to veterans, often free grants of land, and pensions for widows and handicapped veterans, have been offered in all U.S. wars. Following World War I, provisions were made for a full-scale system of hospital and medical care benefits for veterans. By 1929, workers' compensation laws were in effect in all but four states. These state laws made industry and businesses responsible for the costs of compensating workers or their survivors when the worker was injured or killed in connection with his or her job. Retirement programs for mainly State and local government paid teachers, police officers, and fire fighters—date back to the 19th century. All these social programs were far from universal and varied considerably from one state to another.
Prior to the
Great Depression
The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
the United States had social programs that mostly centered around individual efforts, family efforts, church charities, business workers compensation, life insurance and sick leave programs along with some state tax supported social programs. The misery and poverty of the Great Depression threatened to overwhelm all these programs. The severe Depression of the 1930s made Federal action necessary, as neither the states and the local communities, businesses and industries, nor private charities had the financial resources to cope with the growing need among the American people. Beginning in 1932, the Federal Government first made loans, then grants, to states to pay for direct relief and work relief. After that, special Federal emergency relief like the
Civilian Conservation Corps
The Civilian Conservation Corps (CCC) was a voluntary government work relief program that ran from 1933 to 1942 in the United States for unemployed, unmarried men ages 18–25 and eventually expanded to ages 17–28. The CCC was a major part of ...
and other public works programs were started. In 1935, President
Franklin D. Roosevelt
Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
's administration proposed to Congress federal social relief programs and a federally sponsored retirement program. Congress followed by the passage of the 37 page Social Security Act, signed into law August 14, 1935 and "effective" by 1939—just as
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
began. This program was expanded several times over the years.
Economic historians led by Price Fishback have examined the impact of New Deal spending on improving health conditions in the 114 largest cities, 1929–1937. They estimated that every additional $153,000 in relief spending (in 1935 dollars, or $ million in dollars) was associated with a reduction of one infant death, one suicide, and 2.4 deaths from infectious disease.
War on Poverty and Great Society programs (1960s)
Virtually all
food stamp
In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for Poverty in the United States, low- and no-income people. It ...
costs are paid by the federal government.
In 2008, 28.7 percent of the households headed by single women were considered poor.
Welfare reform (1990s)
Before the
Welfare Reform Act of 1996
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) is a United States federal law passed by the 104th United States Congress and signed into law by President Bill Clinton. The bill implemented major changes to ...
, welfare assistance was "once considered an open-ended right," but
welfare reform converted it "into a finite program built to provide short-term cash assistance and steer people quickly into jobs."
Prior to reform, states were given "limitless"
money by the federal government, increasing per family on welfare, under the 60-year-old
Aid to Families with Dependent Children
Aid to Families with Dependent Children (AFDC) was a federal assistance program in the United States in effect from 1935 to 1997, created by the Social Security Act (SSA) and administered by the United States Department of Health and Human Serv ...
(AFDC) program.
This gave states no incentive to direct welfare funds to the neediest recipients or to encourage individuals to go off welfare benefits (the state lost federal money when someone left the system).
Nationwide, one child in seven received AFDC funds,
which mostly went to single mothers.
In 1996, under the
Clinton administration
Bill Clinton's tenure as the 42nd president of the United States began with his first inauguration on January 20, 1993, and ended on January 20, 2001. Clinton, a Democrat from Arkansas, took office following a decisive election victory over Re ...
, Congress passed the
, which gave more control of the welfare system to the states, with basic requirements the states need to meet with regards to welfare services. Some states still offer basic assistance, such as health care, food assistance, child care assistance, unemployment, a few offering cash aid, and one or two offering housing assistance, depending on the state and the circumstance. After reforms, which President Clinton said would "end welfare as we know it,"
amounts from the federal government were given out in a
flat rate
A flat fee, also referred to as a flat rate or a linear rate refers to a pricing structure that charges a single fixed fee for a service, regardless of usage. Less commonly, the term may refer to a rate that does not vary with usage or time of us ...
per state based on population.
Each state must meet certain criteria to ensure recipients are being encouraged to work themselves out of welfare. The new program is called
Temporary Assistance for Needy Families
Temporary Assistance for Needy Families (TANF ) is a federal assistance program of the United States. It began on July 1, 1997, and succeeded the Aid to Families with Dependent Children (AFDC) program, providing cash assistance to indigent Ame ...
(TANF).
It encourages states to require some sort of employment search in exchange for providing funds to individuals, and imposes a five-year lifetime limit on cash assistance.
The bill restricts welfare from most legal
immigrant
Immigration is the international movement of people to a destination country of which they are not natives or where they do not possess citizenship in order to settle as permanent residents or naturalized citizens. Commuters, tourists, and ...
s and increased financial assistance for child care.
The federal government also maintains a contingency $2 billion TANF fund (TANF CF) to assist states that may have rising unemployment.
The new TANF program expired on September 30, 2010, on schedule with states drawing down the entire original emergency fund of $5 billion and the contingency fund of $2 billion allocated by ARRA. Reauthorization of TANF was not accomplished in 2011, but TANF block grants were extended as part of the
Claims Resolution Act of 2010 (see
Temporary Aid for Needy Families
Temporary Assistance for Needy Families (TANF ) is a federal assistance program of the United States. It began on July 1, 1997, and succeeded the Aid to Families with Dependent Children (AFDC) program, providing cash assistance to indigent Ame ...
for details).
![Welref](https://upload.wikimedia.org/wikipedia/commons/f/f0/Welref.jpg)
Following these changes, millions of people left the welfare rolls (a 60% drop overall),
employment rose, and the child poverty rate was reduced.
A 2007
Congressional Budget Office
The Congressional Budget Office (CBO) is a federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.
Inspired by California's Legislative Analyst's Office that manages ...
study found that incomes in affected families rose by 35%.
The reforms were "widely applauded"
after "bitter protest."
''
The Times
''The Times'' is a British daily national newspaper based in London. It began in 1785 under the title ''The Daily Universal Register'', adopting its current name on 1 January 1788. ''The Times'' and its sister paper ''The Sunday Times'' (fou ...
'' called the reform "one of the few undisputed triumphs of American government in the past 20 years."
However, more recent studies have found that the reforms increased deep poverty by 130–150%.
Critics of the reforms sometimes point out that the massive decrease of people on the welfare rolls during the 1990s wasn't due to a rise in actual gainful employment in this population, but rather, was due almost exclusively to their offloading into
workfare
Workfare is a governmental plan under which welfare recipients are required to accept public-service jobs or to participate in job training. Many countries around the world have adopted workfare (sometimes implemented as "work-first" policies) to ...
, giving them a different classification than classic welfare recipient. The late 1990s were also considered an unusually strong economic time, and critics voiced their concern about what would happen in an economic downturn.
''
National Review
''National Review'' is an American conservative editorial magazine, focusing on news and commentary pieces on political, social, and cultural affairs. The magazine was founded by the author William F. Buckley Jr. in 1955. Its editor-in-chief i ...
''
editorial
An editorial, or leading article (UK) or leader (UK) is an article written by the senior editorial people or publisher of a newspaper, magazine, or any other written document, often unsigned. Australian and major United States newspapers, suc ...
ized that the
Economic Stimulus Act of 2009 will reverse the
welfare-to-work
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) is a United States federal law passed by the 104th United States Congress and signed into law by President Bill Clinton. The bill implemented major changes to ...
provisions that Bill Clinton signed in the 1990s, and will again base federal grants to states on the number of people signed up for welfare rather than at a flat rate.
One of the experts who worked on the 1996 bill said that the provisions would lead to the largest one-year increase in welfare spending in American history.
The
House
A house is a single-unit residential building. It may range in complexity from a rudimentary hut to a complex structure of wood, masonry, concrete or other material, outfitted with plumbing, electrical, and heating, ventilation, and air condi ...
bill provides $4 billion to pay 80% of states' welfare caseloads.
Although each state received $16.5 billion annually from the federal government as welfare rolls dropped, they spent the rest of the
block grant
A block grant is a grant-in-aid of a specified amount from a larger government to a smaller regional government body. Block grants have less oversight from the larger government and provide flexibility to each subsidiary government body in terms ...
on other types of assistance rather than saving it for worse economic times.
Timeline
The following is a short timeline of welfare in the United States:
1880s–1890s: Attempts were made to move poor people from work yards to
poor houses
A poorhouse or workhouse is a government-run (usually by a county or municipality) facility to support and provide housing for the dependent or needy.
Workhouses
In England, Wales and Ireland (but not in Scotland), ‘workhouse’ has been the ...
if they were in search of relief funds.
1893–1894: Attempts were made at the first unemployment payments, but were unsuccessful due to the 1893–1894
recession
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
.
1932: The Great Depression had gotten worse and the first attempts to fund relief failed. The "Emergency Relief Act", which gave local governments $300 million, was passed into law.
1933: In March 1933,
President
President most commonly refers to:
*President (corporate title)
*President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese ful ...
Franklin D. Roosevelt
Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
pushed Congress to establish the
Civilian Conservation Corps
The Civilian Conservation Corps (CCC) was a voluntary government work relief program that ran from 1933 to 1942 in the United States for unemployed, unmarried men ages 18–25 and eventually expanded to ages 17–28. The CCC was a major part of ...
.
1935: The
Social Security Act
The Social Security Act of 1935 is a law enacted by the 74th United States Congress and signed into law by US President Franklin D. Roosevelt. The law created the Social Security program as well as insurance against unemployment. The law was pa ...
was passed on June 17, 1935. The bill included direct relief (cash, food stamps, etc.) and changes for unemployment insurance.
1940: Aid to Families With Dependent Children (AFDC) was established.
1964:
Johnson's
Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company i ...
War on Poverty
The war on poverty is the unofficial name for legislation first introduced by United States President Lyndon B. Johnson during his State of the Union address on January 8, 1964. This legislation was proposed by Johnson in response to a national ...
is underway, and the
Economic Opportunity Act
The Economic Opportunity Act of 1964 () authorized the formation of local Community Action Agencies as part of the War on Poverty. These agencies are directly regulated by the federal government. "It is the purpose of The Economic Opportunity Ac ...
was passed. Commonly known as "the
Great Society
The Great Society was a set of domestic programs in the United States launched by Democratic President Lyndon B. Johnson in 1964–65. The term was first coined during a 1964 commencement address by President Lyndon B. Johnson at the University ...
"
1996: Passed under Clinton, the "
of 1996" becomes law.
2013:
Affordable Care Act
The Affordable Care Act (ACA), formally known as the Patient Protection and Affordable Care Act and colloquially known as Obamacare, is a landmark U.S. federal statute enacted by the 111th United States Congress and signed into law by Presid ...
goes into effect with large increases in Medicaid and subsidized medical insurance premiums go into effect.
Types
Means-tested
Spending in millions of dollars
2.3 Trillion Dollar Total of Social Security, Medicare and Means Tested Welfare is low since latest 2013 means tested data not available but 2013, the "real" TOTAL will be higher.
Social Security
The Social Security program mainly refers to the Old Age, Survivors, and Disability Insurance (OASDI) program, and possibly to the unemployment insurance program.
Retirement Insurance Benefits (RIB), also known as Old-age Insurance Benefits, are a form of social insurance payments made by the U.S. Social Security Administration paid based upon the attainment of old age (62 or older).
Social Security Disability Insurance (SSD or SSDI) is a federal insurance program that provides
income supplement
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
s to people who are restricted in their ability to be
employed
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any oth ...
because of a notable
disability
Disability is the experience of any condition that makes it more difficult for a person to do certain activities or have equitable access within a given society. Disabilities may be Cognitive disability, cognitive, Developmental disability, dev ...
.
Unemployment insurance
Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed people. In the United States, benefits are funded by a comp ...
, also known as unemployment compensation, provides for money (from the United States and from the individual states) collected from employers, to workers who have become unemployed through no fault of their own. The unemployment benefits are run by each state with different state-defined criteria for duration, percent of income paid, etc. Nearly all systems require the recipient to document their search for employment in order to continue receiving benefits. Extensions of time for receiving benefits are sometimes offered for extensive work unemployment. These extra benefits usually take the form of loans from the federal government that each state has to repay.
General welfare
The Supplemental Security Income (SSI) program provides stipends to low-income people who are either aged (65 or older), blind, or disabled.
The Temporary Assistance for Needy Families (TANF) provides cash assistance to indigent American families with dependent children.
Healthcare spending
Health care in the United States is provided by many separate legal entities. Health care facilities are largely owned and operated by the
private sector
The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government.
Employment
The ...
.
Health insurance in the United States
Health insurance in the United States is any program that helps pay for medical expenses, whether through privately purchased insurance, social insurance, or a social welfare program funded by the government. Synonyms for this usage include ...
is now primarily provided by the government in the public sector, with 60–65% of healthcare provision and spending coming from programs such as Medicare,
Medicaid
Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and pers ...
,
TRICARE
Tricare (styled TRICARE) is a health care program of the United States Department of Defense Military Health System. Tricare provides civilian health benefits for U.S Armed Forces military personnel, military retirees, and their dependents, in ...
, the
Children's Health Insurance Program
The Children's Health Insurance Program (CHIP) – formerly known as the State Children's Health Insurance Program (SCHIP) – is a program administered by the United States Department of Health and Human Services that provides matching funds to ...
, and the
Veterans Health Administration
The Veterans Health Administration (VHA) is the component of the United States Department of Veterans Affairs (VA) led by the Under Secretary of Veterans Affairs for Health that implements the healthcare program of the VA through a national ...
. Having some form of comprehensive health insurance is statutorily compulsory for most people lawfully residing within the US.
Medicare is a
social insurance
Social insurance is a form of Social protection, social welfare that provides insurance against economic risks. The insurance may be provided publicly or through the subsidizing of private insurance. In contrast to other forms of Welfare, soci ...
program administered by the
United States government
The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a fede ...
, providing
health insurance
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among ma ...
coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other special criteria like the
End Stage Renal Disease Program
In 1972 the United States Congress passed legislation authorizing the End Stage Renal Disease Program (ESRD) under Medicare. Section 299I of Public Law 92-603, passed on October 30, 1972, extended Medicare coverage to Americans if they had stage ...
(ESRD). Medicare in the United States somewhat resembles a
single-payer health care system but is not. Before Medicare, only 51% of people aged 65 and older had health care coverage, and nearly 30% lived below the federal poverty level.
Medicaid is a health program for certain people and families with low incomes and resources. It is a
means-tested
A means test is a determination of whether an individual or family is eligible for government assistance or welfare, based upon whether the individual or family possesses the means to do without that help.
Canada
In Canada, means tests are use ...
program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are
U.S. citizens
Citizenship of the United States is a legal status that entails Americans with specific rights, duties, protections, and benefits in the United States. It serves as a foundation of fundamental rights derived from and protected by the Constitut ...
or legal permanent residents, including low-income adults, their children, and people with certain
disabilities
Disability is the experience of any condition that makes it more difficult for a person to do certain activities or have equitable access within a given society. Disabilities may be cognitive, developmental, intellectual, mental, physical, se ...
. Medicaid is the largest source of funding for medical and health-related services for people with limited income in the United States.
The Children's Health Insurance Program (CHIP) is a program administered by the
United States Department of Health and Human Services
The United States Department of Health and Human Services (HHS) is a cabinet-level executive branch department of the U.S. federal government created to protect the health of all Americans and providing essential human services. Its motto is ...
that provides
matching funds
Matching funds are funds that are set to be paid in proportion to funds available from other sources. Matching fund payments usually arise in situations of charity or public good. The terms cost sharing, in-kind, and matching can be used interc ...
to states for health insurance to families with children. The program was designed to cover uninsured children in families with incomes that are modest but too high to qualify for Medicaid.
The
Alcohol, Drug Abuse, and Mental Health Services Block Grant
The Substance Abuse Prevention and Treatment Block Grant (SABG or SAPT) and the Community Mental Health Services Block Grant (MHBG or CMHS) are federal assistance block grants awarded by SAMHSA.
History
The Alcohol, Drug Abuse, and Mental Healt ...
(or ADMS Block Grant) is a federal assistance
block grant
A block grant is a grant-in-aid of a specified amount from a larger government to a smaller regional government body. Block grants have less oversight from the larger government and provide flexibility to each subsidiary government body in terms ...
given by the
United States Department of Health and Human Services
The United States Department of Health and Human Services (HHS) is a cabinet-level executive branch department of the U.S. federal government created to protect the health of all Americans and providing essential human services. Its motto is ...
. Drug addiction, particularly the use of heroin, is an increasing cause of physical and mental disabilities. Treatment with
methadone clinics can be supported by Medicaid and state healthcare programs.
The Trump administration has decided to cut $9 million in Affordable Care Act subsidies by 2018.
This action was taken by use of Executive Order 13813, on October 12, 2017. The initial goal had been for Republicans in Congress to use their majority to "repeal and replace" the Affordable Care Act, but they proved unable to do so; therefore, the Trump administration itself took measures to weaken the program. The healthcare changes are expected to be noticeable by the year 2019.
Education spending
![UCBerkeleyCampus](https://upload.wikimedia.org/wikipedia/commons/7/7f/UCBerkeleyCampus.jpg)
Per capita spending on tertiary education is among the highest in the world. Public education is managed by individual states, municipalities and regional school districts. As in all developed countries,
primary
Primary or primaries may refer to:
Arts, entertainment, and media Music Groups and labels
* Primary (band), from Australia
* Primary (musician), hip hop musician and record producer from South Korea
* Primary Music, Israeli record label
Works
* ...
and
secondary education
Secondary education or post-primary education covers two phases on the International Standard Classification of Education scale. Level 2 or lower secondary education (less commonly junior secondary education) is considered the second and final pha ...
is free, universal and mandatory. Parents do have the option of
home-schooling
Homeschooling or home schooling, also known as home education or elective home education (EHE), is the education of school-aged children at home or a variety of places other than a school. Usually conducted by a parent, tutor, or an onlin ...
their children, though some states, such as
California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
(until a 2008 legal ruling overturned this requirement
[''Jonathan L. v. Superior Court'', 165 Cal.App.4th 1074 (Cal.App. 2 Dist. 2008).]
Text of opinion
/ref>), require parents to obtain teaching credentials before doing so. Experimental programs give lower-income parents the option of using government issued vouchers to send their kids to private rather than public schools in some states/regions.
As of 2007, more than 80% of all primary and secondary students were enrolled in public schools, including 75% of those from households with incomes
Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. For ...
in the top 5%. Public schools commonly offer after-school programs and the government subsidizes private after school programs, such as the Boys & Girls Club. While pre-school education is subsidized as well, through programs such as Head Start, many Americans still find themselves unable to take advantage of them. Some education critics have therefore proposed creating a comprehensive transfer system to make pre-school education universal, pointing out that the financial returns alone would compensate for the cost.
Tertiary education is not free, but is subsidized by individual states and the federal government. Some of the costs at public institutions is carried by the state.
The government also provides grants, scholarships and subsidized loans to most students. Those who do not qualify for any type of aid, can obtain a government guaranteed loan and tuition can often be deducted from the federal income tax
Income taxes in the United States are imposed by the federal government, and most states. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allow ...
. Despite subsidized attendance cost at public institutions and tax deductions, however, tuition costs have risen at three times the rate of median household income
The median income is the income amount that divides a population into two equal groups, half having an income above that amount, and half having an income below that amount. It may differ from the mean (or average) income. Both of these are ways of ...
since 1982. In fear that many future Americans might be excluded from tertiary education, progressive Democrats have proposed increasing financial aid and subsidizing an increased share of attendance costs. Some Democratic politicians and political groups have also proposed to make public tertiary education free of charge, i.e. subsidizing 100% of attendance cost.
Food assistance
In the U.S., financial assistance for food purchasing for low- and no-income people is provided through the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. This federal aid
A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the ter ...
program is administered by the Food and Nutrition Service
The Food and Nutrition Service (FNS) is an agency of the United States Department of Agriculture (USDA). The FNS is the federal agency responsible for administering the nation’s domestic nutrition assistance programs. The service helps to add ...
of the U.S. Department of Agriculture
The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
, but benefits are distributed by the individual U.S. states. It is historically and commonly known as the Food Stamp Program, though all legal references to "stamp" and "coupon" have been replaced by "EBT" and "card," referring to the refillable, plastic Electronic Benefit Transfer (EBT) cards that replaced the paper "food stamp" coupons. To be eligible for SNAP benefits, the recipients must have incomes below 130 percent of the poverty line, and also own few assets. Since the economic downturn began in 2008, the use of food stamps has increased.[
The (WIC) is a child nutrition program for healthcare and nutrition of low-income pregnant women, breastfeeding women, and infants and children under the age of five. The eligibility requirement is a family income below 185% of the U.S. Poverty Income Guidelines, but if a person participates in other benefit programs, or has family members who participate in SNAP, Medicaid, or Temporary Assistance for Needy Families, they automatically meet the eligibility requirements.
The ]Child and Adult Care Food Program
The 'Child and Adult Care Food Program'' (CACFP) is a type of United States federal assistance provided by the Food and Nutrition Service of the United States Department of Agriculture (USDA) to states in order to provide a daily subsidized f ...
(CACFP) is a type of United States federal assistance
In the United States, federal assistance, also known as federal aid, federal benefits, or federal funds, is defined as any federal program, project, service, or activity provided by the Federal government of the United States, federal government ...
provided by the U.S. Department of Agriculture (USDA) to states in order to provide a daily subsidized food service for an estimated 3.2 million children and 112,000 elderly or mentally or physically impaired adults[Why CACFP Is Important](_blank)
Child and Adult Care Food Program Homepage, Food and Nutrition Service
The Food and Nutrition Service (FNS) is an agency of the United States Department of Agriculture (USDA). The FNS is the federal agency responsible for administering the nation’s domestic nutrition assistance programs. The service helps to add ...
, US Department of Agriculture in non-residential, day-care settings.[''Child and Adult Care Food Program'' (CFDA 10.558]
OMB Circular A-133 Compliance Supplement
; Part 4: Agency Program Requirements: Department of Housing and Urban Development, p. 4-10.558-1
Public housing
The Housing and Community Development Act of 1974
The Housing and Community Development Act of 1974, (12 U.S.C. 1706e), is a United States federal law that, among other provisions, amended the Housing Act of 1937 to create Section 8 housing, authorizes "Entitlement Communities Grants" to be awa ...
created Section 8 housing
Section 8 of the Housing Act of 1937 (), often called Section 8, as repeatedly amended, authorizes the payment of rental housing assistance to private landlords on behalf of low-income households in the United States. Fort Lauderdale, Florida Hou ...
, the payment of rent assistance to private landlords on behalf of low-income households.
Impact
According to a 2020 study in the ''Quarterly Journal of Economics'', U.S. government programs that focus on improving the health and educational outcomes of low-income children are the most effective, with benefits substantial enough that the government may even recoup its investment over time due to increased tax revenue from adults who were beneficiaries as children.
According to the Congressional Budget Office, social programs significantly raise the standard of living for low-income Americans, particularly the elderly. The poorest 20% of American households earn a before-tax average of only $7,600, less than half of the federal poverty line
The poverty threshold, poverty limit, poverty line or breadline is the minimum level of income deemed adequate in a particular country. The poverty line is usually calculated by estimating the total cost of one year's worth of necessities for t ...
. Social programs increase such households' before-tax income to $30,500. Social Security and Medicare are responsible for two thirds of that increase.
Political scientist Benjamin Radcliff has argued that more generous social programs produce a higher quality of life for all citizens, rich and poor alike, as such programs not only improve life for those directly receiving benefits (or living in fear of someday needing them, from the prospect of unemployment or illness) but also reduce the social pathologies (such as crime and anomie) that are the result of poverty and insecurity. By creating a society with less poverty and less insecurity, he argues, we move closer to creating a nation of shared prosperity that works to the advantage of all. Thus, his research suggests, life satisfaction (or "happiness") is strongly related to the generosity of the social safety net (what economists often call decommodification
In political economy, decommodification is the strength of social entitlements and citizens' degree of immunization from market dependency.
In regards to the labor force, decommodification describes a "degree to which individual, or families, can ...
), whether looking across the industrial democracies or across the American states.
Social Impact
Complaints of mistreatment in navigating the welfare state are commonplace, with most unpleasant encounters arising from interactions between welfare recipients and social workers. The dominant approach to social work was casework which emphasized the personal characteristics or moral deficiencies of the recipient rather than social reform. In some cases the said deficiency was grounds for denying assistance. Casework fostered a paternalistic and demeaning relationship between social workers and clients. Caseworkers are the persons who have the most opportunity for showing respect or disrespect to the welfare client. Attitudes of welfare clients toward their caseworkers are described not as much in terms of what they receive in their checks but rather in terms of the relationship that they have with their caseworker; a study found that the way in which a client was shown respect was often more important to the client than what the provider in the situation did to solve the client’s problems.
As such, there has been work in the private and public sector to target the relationships between social worker and welfare recipients as a way to improve access to social provisions and ease the transition from welfare to work. In a study conducted of the association between the relationship held between people with mental health illnesses who are arrested and sent to mental health court with the mental health court (MHC) caseworker assigned to their case and outcomes, researchers found that perceived conflict with caseworkers was higher in a number of participants who were terminated or missing from MHC. Participants who reported less conflict with an assigned caseworker utilized more services and spent fewer days in jail. The study shows the importance a perceived bond has on a participant's use of services, with less perceived conflict resulting in an increase of service use and program retention and decrease in jail time served. Similar results were found in an evaluation of the impact of eleven different welfare-to-work approaches on adults and children in the course of five years. Two programs who had lower enforcement of the participation mandate compared to the other nine, had little to no impact on employment and earnings if its participants. It appears that a minimum level of involvement and enforcement by program staff is required to produce a moderate improvement in employment—without it, participants who would not participate on their own volition would not engage in the program’s activities and reap the benefits from them. Within the same evaluation it was found that programs that appointed one caseworker per person rather than the traditional two, had better outcomes for participants than programs that had assigned two caseworkers per person.
When a social worker demonstrates to her clients by her actions that she respects them, a relationship is able to grow. Clients who feel respected by their social worker will be more likely to freely discuss difficult topics, explore their own contributions, and appoint themselves in efforts to achieve specific outcomes. A client’s perception of their provider’s level of regard for them was significantly related to their ability to achieve a certain outcome at the end of their program. Respect, although important throughout all phases of service, it is particularly crucial to interactions among newcomers or strangers. Such expressions would include vocal sounds (ex. greeting, calling), physical movements (ex. serving, guiding), bodily movements (acknowledging, polite posture), appearance (ex. proper dressing, grooming), and so forth.
When grievances do need be addressed by the welfare beneficiaries, they usually seek the assistance of a lawyer or advocate. Because advocacy is a practice of speaking for the advocate, no matter how “rebellious” they aspire to be, they inevitably perpetuate the same subordination of their client as the system they attempt to combat Lucie White presents this point in her “''Goldberg v Kelly'' On the Paradox of Lawyering for the Poor” and proposes that when lawyers are representing poor welfare recipients, lawyers need to continuously cede to “clients” the power to speak for themselves. Such an act would transform the lawyer from a professional service that is imposed upon subordinated communities to partners that allow clients to take the lead of their own advocacy.
Analysis
According to a 2012 review study, whether a social program generates public support depends on:
* whether the program is universal or targeted towards certain groups
* the size of the social program benefits (larger benefits incentivize greater mobilization to defend a social program)
* the visibility and traceability of the benefits (whether recipients know where the benefits come from)
* the proximity and concentration of the beneficiaries (this affects the ease by which beneficiaries can organize to protect a social program)
* the duration of the benefits (longer benefits incentivize greater mobilization to defend a social program)
* the manner in which a program is administered (e.g. is the program inclusive, does it follow principles?)
Household characteristics
Social programs have been implemented to promote a variety of societal goals, including alleviating the effects of poverty on those earning or receiving low income or encountering serious medical problems, and ensuring retired people have a basic standard of living.
Unlike in Europe, Christian democratic
Christian democracy (sometimes named Centrist democracy) is a political ideology that emerged in 19th-century Europe under the influence of Catholic social teaching and neo-Calvinism.
It was conceived as a combination of modern democratic ...
and social democratic
Social democracy is a political, social, and economic philosophy within socialism that supports political and economic democracy. As a policy regime, it is described by academics as advocating economic and social interventions to promote soci ...
theories have not played a major role in shaping welfare policy in the United States.[Esping-Andersen, G. (1991). ''The Three Worlds of Welfare Capitalism''. Princeton, NJ: Princeton University Press.] Entitlement programs in the U.S. were virtually non-existent until the administration of Franklin Delano Roosevelt
Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
and the implementation of the New Deal
The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939. Major federal programs agencies included the Civilian Cons ...
programs in response to the Great Depression
The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
. Between 1932 and 1981, modern American liberalism dominated U.S. economic policy and the entitlements grew along with American middle class
Though the American middle class does not have a definitive definition, contemporary social scientists have put forward several ostensibly congruent theories on it. Depending on the class model used, the middle class constitutes anywhere from 25% ...
wealth.
Eligibility for welfare benefits depends on a variety of factors, including gross and net income, family size, pregnancy, homeless
Homelessness or houselessness – also known as a state of being unhoused or unsheltered – is the condition of lacking stable, safe, and adequate housing. People can be categorized as homeless if they are:
* living on the streets, also kn ...
ness, unemployment, and serious medical conditions like blindness, kidney failure or AIDS.
Drug testing for applicants
The United States adopted the Personal Responsibility and Work Opportunity Act
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) is a United States federal law passed by the 104th United States Congress and signed into law by President Bill Clinton. The bill implemented major changes to ...
in 1996, which gave individual states the authority to drug test welfare recipients. Drug testing in order for potential recipients to receive welfare has become an increasingly controversial topic. Richard Hudson, a Republican
Republican can refer to:
Political ideology
* An advocate of a republic, a type of government that is not a monarchy or dictatorship, and is usually associated with the rule of law.
** Republicanism, the ideology in support of republics or agains ...
from North Carolina
North Carolina () is a state in the Southeastern region of the United States. The state is the 28th largest and 9th-most populous of the United States. It is bordered by Virginia to the north, the Atlantic Ocean to the east, Georgia and So ...
claims he pushes for drug screening as a matter of "moral obligation" and that testing should be enforced as a way for the United States government to discourage drug usage. Others claim that ordering the needy to drug test "stereotypes, stigmatizes, and criminalizes" them without need. States that currently require drug tests to be performed in order to receive public assistance include Arizona
Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a state in the Southwestern United States. It is the 6th largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona is part of the Fou ...
, Florida
Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...
, Georgia
Georgia most commonly refers to:
* Georgia (country), a country in the Caucasus region of Eurasia
* Georgia (U.S. state), a state in the Southeast United States
Georgia may also refer to:
Places
Historical states and entities
* Related to the ...
, Missouri
Missouri is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. Ranking List of U.S. states and territories by area, 21st in land area, it is bordered by eight states (tied for the most with Tennessee ...
, Oklahoma
Oklahoma (; Choctaw language, Choctaw: ; chr, ᎣᎧᎳᎰᎹ, ''Okalahoma'' ) is a U.S. state, state in the South Central United States, South Central region of the United States, bordered by Texas on the south and west, Kansas on the nor ...
, Tennessee
Tennessee ( , ), officially the State of Tennessee, is a landlocked state in the Southeastern region of the United States. Tennessee is the 36th-largest by area and the 15th-most populous of the 50 states. It is bordered by Kentucky to th ...
, and Utah
Utah ( , ) is a state in the Mountain West subregion of the Western United States. Utah is a landlocked U.S. state bordered to its east by Colorado, to its northeast by Wyoming, to its north by Idaho, to its south by Arizona, and to it ...
.
Demographics of TANF recipients
Some have argued that welfare has come to be associated with poverty. Political scientist Martin Gilens Martin may refer to:
Places
* Martin City (disambiguation)
* Martin County (disambiguation)
* Martin Township (disambiguation)
Antarctica
* Martin Peninsula, Marie Byrd Land
* Port Martin, Adelie Land
* Point Martin, South Orkney Islands
Austral ...
argues that blacks
Black is a racialized classification of people, usually a political and skin color-based category for specific populations with a mid to dark brown complexion. Not all people considered "black" have dark skin; in certain countries, often in ...
have overwhelmingly dominated images of poverty over the last few decades and states that "white Americans with the most exaggerated misunderstandings of the racial composition of the poor are the most likely to oppose welfare".[Gilens, Martin (1996). "Race and Poverty in America: Public Misperceptions and the American News Media." ''Public Opinion Quarterly'' 60, no. 4, pp. 515–41 (516).] This perception possibly perpetuates negative racial stereotype
An ethnic stereotype, racial stereotype or cultural stereotype involves part of a system of beliefs about typical characteristics of members of a given ethnic group, their social status , status, societal and cultural norms. A national stereot ...
s and could increase Americans' opposition and racialization of welfare policies.
In FY 2010, African-American families comprised 31.9% o
TANF
families, white
White is the lightest color and is achromatic (having no hue). It is the color of objects such as snow, chalk, and milk, and is the opposite of black. White objects fully reflect and scatter all the visible wavelengths of light. White on ...
families comprised 31.8%, and 30.0% were Hispanic
The term ''Hispanic'' ( es, hispano) refers to people, Spanish culture, cultures, or countries related to Spain, the Spanish language, or Hispanidad.
The term commonly applies to countries with a cultural and historical link to Spain and to Vic ...
.[Characteristics and Financial Circumstances of TANF Recipients – Fiscal Year 2010]
. United States Department of Health and Human Services. Since the implementation of TANF, the percentage of Hispanic families has increased, while the percentages of white and black families have decreased. In FY 1997, African-American families represented 37.3% of TANF recipient families, white families 34.5%, and Hispanic families 22.5%.
As of 2013, the US population as a whole is composed of 63.7% whites, 16.3% Hispanic, 12.5% African-American, 4.8% Asian and 2.9% other races. TANF programs at a cost of about $20.0 billion (2013) have decreased in use as Earned Income Tax Credit
The United States federal earned income tax credit or earned income credit (EITC or EIC) is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends ...
s, Medicaid
Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and pers ...
grants, Supplemental Nutrition Assistance Program
In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for low- and no-income people. It is a federal aid program, ad ...
benefits, Supplemental Security Income
Supplemental Security Income (SSI) is a means-tested program that provides cash payments to disabled children, disabled adults, and individuals aged 65 or older who are citizens or nationals of the United States. SSI was created by the Social Se ...
(SSI), child nutrition programs
In the United States, the Child Nutrition Programs are a grouping of programs funded by the federal government to support meal and milk service programs for children in schools, residential and day care facilities, family and group day care hom ...
, Children's Health Insurance Program
The Children's Health Insurance Program (CHIP) – formerly known as the State Children's Health Insurance Program (SCHIP) – is a program administered by the United States Department of Health and Human Services that provides matching funds to ...
(CHIP), housing assistance, Feeding Programs (WIC & CSFP), along with about 70 more programs, have increased to over $700 billion more in 2013.
Costs
The Great Recession
The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
made a large impact on welfare spending. In a 2011 article, ''Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...
'' reported, "The best estimate of the cost of the 185 federal means tested welfare programs for 2010 for the federal government alone is $717 billion, up a third since 2008, according to the Heritage Foundation
The Heritage Foundation (abbreviated to Heritage) is an American conservative think tank based in Washington, D.C. that is primarily geared toward public policy. The foundation took a leading role in the conservative movement during the presiden ...
. Counting state spending of about $210 billion, total welfare spending for 2010 reached over $920 billion, up nearly one-fourth since 2008 (24.3%)"—and increasing fast. The previous decade had seen a 60% decrease in the number of people receiving welfare benefits, beginning with the passage of the Personal Responsibility and Work Opportunity Act
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) is a United States federal law passed by the 104th United States Congress and signed into law by President Bill Clinton. The bill implemented major changes to ...
, but spending did not decrease proportionally during that time period. Combined annual federal and state spending is the equivalent of over $21,000 for every person living below poverty level in America.
See also
* Administration of federal assistance in the United States
In the United States, federal assistance, also known as federal aid, federal benefits, or federal funds, is defined as any federal program, project, service, or activity provided by the federal government that directly assists domestic governmen ...
* Wealth inequality in the United States
Wealth inequality in the United States is the unequal distribution of assets among residents of the United States. Wealth commonly includes the values of any homes, automobiles, personal valuables, businesses, savings, and investments, as wel ...
* Welfare economics
Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level.
Attempting to apply the principles of welfare economics gives rise to the field of public econ ...
* Welfare in California
Welfare in California consists of welfare in the United States, federal welfare programs—which are often at least partially administered by state and county agencies—and several independent programs, which are usually administered by the counti ...
* Welfare in Puerto Rico
Public welfare in Puerto Rico is a system of nutrition assistance, public health, education, and subsidized public housing, among others, provided to the impoverished population of the island.
Federal programs
The following programs are provid ...
* Welfare trap
The welfare trap (or unemployment trap or poverty trap in British English) theory asserts that taxation and welfare systems can jointly contribute to keep people on social insurance because the withdrawal of means-tested benefits that comes with ...
References
Further reading
* Horan, Caley. 2021.
Insurance Era: Risk, Governance, and the Privatization of Security in Postwar America
'. University of Chicago Press.
*
* Alison Siskin
Noncitizen Eligibility for Federal Public Assistance: Policy Overview
Congressional Research Service, 12 December 2016
{{North America topic, Welfare in
Welfare in the United States
Economy of the United States
Federal assistance in the United States