1. Welfare Reform Act (1996) • Introduction • The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 sought to fundamentally change the “culture of poverty” in America. • The act: • Ended welfare as an entitlement program. • Placed a lifetime limit on benefits of 60 months. • Placed money in the hands of the states, which allowed for innovation in welfare reform.

2. Welfare Reform Act (1996) • Introduction • Recipients of TANF (Temporary Assistance for Needy Families) would have to work or be looking for work. • Recipients must leave welfare rolls completely after a total of 60 months of Federal benefits.

3. Welfare Reform Act (1996) • Evaluation • The bill was followed by a reduction in unemployment from 1996 to 2000. • Some claim this reduction occurred because of the PRWORA. • Others note that the economy grew rapidly during this period.

4. Welfare Reform Act (1996) • Evaluation • The bill can be particularly difficult to implement in rural areas because of a lack of jobs, distance to work, low availability of child care, and poor quality labor in areas of persistent poverty. • Most states have extended the limit on receipt of benefits: • to assist persons in need, and • to bring Federal funds into the state.