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1994.12.22 :  Mississippi Welfare Waiver

Contact:  Michael Kharfen  (202) 401-9215
December 22, 1994

               HHS APPROVES MISSISSIPPI WELFARE WAIVER

     HHS Secretary Donna E. Shalala today approved "A New
Direction," a welfare demonstration for Mississippi to promote
health and education for children receiving welfare assistance,
and to support work efforts by their parents.  The demonstration
includes a statewide component and two projects:  "Work First" in
six counties and "Work Encouragement" in two counties.

     "This demonstration is another example of an innovative plan
to move people from welfare to work so that they can support
themselves and their families," said Secretary Shalala. "The
administration is continuing its commitment to providing states
the flexibility to demonstrate new approaches to welfare reform."

     The statewide component requires all children aged six
through 17 to attend school and all children under age 6 to be
immunized and receive regular health checkups.  It also extends
Aid to Families with Dependent Children eligibility for
two-parent families by allowing mothers or fathers to work more
than 100 hours a month.

     The "Work First" component provides subsidized,
private-sector employment for job-ready participants.  Employers
will be paid from a special fund created from participants' AFDC
and food stamp benefits.  The state will provide supplemental
payments to recipients when their total income is less than the
combined AFDC and Food Stamp benefits they would otherwise
receive.

     In addition, each "Work First" participant will have an
"individual development account" for family savings, to which
employers will contribute one dollar per hour of work.  The state
will also pass on to the family all the child support payments it
collects on its behalf.

     The "Work Encouragement" component allows recipients to keep
more of their earnings and still receive AFDC, by raising the
earned income limit from 60 to 100 percent of state-established
need levels.  Time limits on income disregards will also be
waived.

     Under both the "Work First" and "Work Encouragement"
components, state courts may require unemployed, non-custodial
fathers to participate in the JOBS program to meet child support
obligations.

    The "Work First" component will be implemented in Adams,
Harrison, Jones, Lee, Hinds and Washington counties.  The "Work
Encouragement" component will be implemented in Leflore and
Oktibbeha counties.

     "This demonstration tests new ways of promoting work and
responsibility, helping families move towards self-sufficiency,"
said Mary Jo Bane, HHS assistant secretary for children and
families.  "I look forward to reviewing the results."

     The demonstration will be in effect for five years and will
include a rigorous evaluation.
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