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Date:  September 28, 1995
For Release:  Immediately
Contact:  Michael Kharfen, ACF (202) 401-9215

HHS Approves North Dakota Welfare Demonstration

HHS Secretary Donna E. Shalala today announced approval of North Dakota's "Training, Education, Employment and Management" (TEEM) welfare demonstration project. This is the second waiver demonstration approved for North Dakota under the Clinton administration.

"North Dakota is one of 34 states that have now been given the freedom to pursue welfare reform plans that promote work and responsibility," Secretary Shalala said. "Congress should continue the bipartisan progress the Senate made this month towards national welfare reform that's pro-work, pro-responsibility, and pro-child. However, even if Congress fails to act, the Clinton administration will continue its commitment to ending welfare as we know it -- one state at a time."

TEEM, which will operate in 10 North Dakota counties, combines Aid to Families with Dependent Children (AFDC), Food Stamps, and Low Income Home Energy Assistance Program (LIHEAP) into a single cash benefit, and establishes simpler and more uniform eligibility rules. It requires recipients to develop a personal responsibility contract and establish a time limit for attaining self-sufficiency. Failure to cooperate in developing the contract within two months will result in denial of benefits. Failure to comply with a signed contract will result in progressive sanctions, up to and including loss of AFDC benefits for the entire family.

Under TEEM, families may earn more money and accumulate more assets before losing benefits. They may also own one vehicle, regardless of value, to get to and from work.

Health screenings and appropriate immunizations will be required for all children. To encourage family formation, income of a stepparent will not be counted for the first six months.

"The demonstration combines real incentives with fair sanctions to promote work and parental responsibility," said Mary Jo Bane, assistant secretary for children and families. "The Clinton administration's commitment to state flexibility will give North Dakota's welfare families opportunity to become self sufficient."

The 10 counties where the project will operate are Adams, Cass, Ransom, Richland, Sargent, Stark, Steele, Stutsman, Traill, and Williams.

North Dakota's demonstration will operate for seven years and include a rigorous evaluation.

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