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Rethinking the Federal Safety Net: A Call for Reform

Explore the shortcomings of the current US Federal Safety Net system and the need for comprehensive reforms to address inefficiencies, inequalities, and high costs. Join the grassroots effort for change!

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Rethinking the Federal Safety Net: A Call for Reform

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  1. Federal Safety Net“Big Dollars” FederalSafetyNet.com

  2. Federal Expenditures – FY 2012In Billions FederalSafetyNet.com

  3. Federal Welfare ProgramsFY 2012 Expenditures - Billions FederalSafetyNet.com

  4. Census Bureau Poverty ThresholdsAnnual Income FederalSafetyNet.com

  5. Census Bureau 2012 Poverty Reports • Number of people in poverty • 12.6 Million Individuals • 9.8 Million Families • Income gap to get out of poverty • Individuals averaged $6,542 • Families averaged $9,785 FederalSafetyNet.com

  6. Safety Net Review • Cost to move all Americans out of Poverty - $178 Billion • Spent $357 Billion on support for low-income Americans • Where did all the extra go? Who got it? FederalSafetyNet.com

  7. “Extra” – People above poverty line Examples • SNAP – 130% of poverty threshold • WIC - 185% of poverty threshold • Rental Assistance – 50% of median income in a local area (50% of median income totaled $24,723 for the U.S. as a whole). Conclusion – We are inconsistent in the definition of who is in need. FederalSafetyNet.com

  8. “Extra” – People Moved Above Threshold • Benefits from programs rarely used in income tests for qualification • No maximum number of programs a person can participate in • No maximum benefit or cap Very little information on cumulative use of programs Conclusion – We are inconsistent with the support we give to the poor. FederalSafetyNet.com

  9. “Extra” – Administrative Costs USDA – SNAP, Child Nutrition, WIC Social Security Administration – SSI IRS – Negative Income Tax HUD - Housing Assistance U.S. Department of Health and Human Services - TANF, Head Start, Child Care and LIHEAP Department of Education - Pell Grants Department of Labor – Job Training Federal Communications Commission - Lifeline FederalSafetyNet.com

  10. First Goal – Educate the Public Federal Safety Net must be viewed in whole (All programs combined) • Ineffective • Expensive • Unfair FederalSafetyNet.com

  11. Ineffective System traps the poor – doesn’t empower them • Doesn’t “Make Work Pay” • Penalizes Marriage • Doesn’t encourage increased responsibility • Doesn’t have time limits or goals “Hand Out” Vs “Hand Up” FederalSafetyNet.com

  12. FederalSafetyNet.com

  13. Expensive Combined program costs are high • Combined benefits are not calibrated to poverty levels • No cap on combined benefits • 13 programs run in 8 agencies FederalSafetyNet.com

  14. Unfair • Programs have no consistency in qualification • System is very bureaucratic and hard to use FederalSafetyNet.com

  15. Second Goal – Support Welfare Reform Step 1 – Admit we have a problem Step 2 – Address the whole system Step 3 – Define Reform which would include simplification, focus and cost savings (Suggested plan is on the Website) Step 4 – Adopt meaningful change with an act of Congress signed by the President FederalSafetyNet.com

  16. Conclusion • We know the Federal Safety Net needs fixing • We can save billions and help the poor. • We need a citizen led effort to affect change • Help us spread the word and participate in our grassroots effort! FederalSafetyNet.com

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