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Date:  September 1, 1995
For Release:  Immediately
Contact:  Michael Kharfen, ACF (202) 401-9215

HHS Approves Amendment
to Mississippi Welfare Waiver

HHS Secretary Donna E. Shalala today approved an amendment to the Mississippi New Direction Demonstration Project to deny additional Aid to Family with Dependent Children benefits to children conceived while the family is receiving AFDC. This is the second waiver demonstration approved for Mississippi under the Clinton administration.

"This amendment to Mississippi's demonstration continues the Clinton administration's commitment to state flexibility in welfare reform," said Secretary Shalala.

Any income the family receives on behalf of the child, such as child support payments, will not be counted in determining the family's eligibility for AFDC. In addition, the child will be eligible for Medicaid. The benefit cap will not apply to first-born children or to children conceived as a result of rape, sexual assault or incest.

The Mississippi New Direction Demonstration Project, first approved in December 1994, provides incentives for school attendance and immunization and makes more two-parent families eligible for benefits. In six counties, AFDC and food stamp benefits can be used to supplement wages in private sector jobs, and in two other counties, higher income ceilings allow recipients to earn more before they lose their AFDC eligibility.

"We look forward to the results of Mississippi's efforts to reform its welfare program," said Mary Jo Bane, HHS assistant secretary for children and families.

The Mississippi New Direction Demonstration Project will operate until the year 2000 and will include a rigorous evaluation.

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