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1992.07.01 :  New Jersey Welfare Reform Demonstration

Contact:  Larry Dye (202) 401-9215
July 1, 1992

       In announcing approval of New Jersey's request to operate
its Family Development Program (FDP), HHS Secretary Louis W.
Sullivan, M.D., said today, "We will continue to reach decisions on
state waiver applications expeditiously so that new approaches in
public assistance programs can be developed."
       Under New Jersey's program, after a 10 month grace period,
Aid to Families with Dependent Children(AFDC) cash assistance will
not be increased for families who have more children while on
welfare. Families will be able to retain more of their earning when
they go to work.  To promote family formation, AFDC benefit rules
will also be changed regarding how stepparent income is treated.
The Program will also require participation of AFDC parents whose
youngest child is two years of age and over in educational,
employment-directed activities or employment.
       "The New Jersey initiative is another state's approach to
try to strengthen families and promote family self-sufficiency. We
continue to encourage state innovation in their welfare programs,
so that the AFDC system can become more effective in reducing
welfare dependency," said Jo Anne B. Barnhart, assistant secretary
for children and families.  

     Additionally, under waivers provided to New Jersey: 
     o    AFDC recipients whose youngest child is under two years
of age will be required to participate in vocational counseling and
assessment, and,
     o    There will be a 24-month period of transitional Medicaid
benefits for those who leave AFDC due to employment, rather than a
12-month transition period.
       The New Jersey program will begin October 1, 1992 for a
five-year period. The demonstration will be evaluated, based on an
experimental design, to determine its effectiveness. 
       New Jersey is the third state to receive welfare reform
waivers this year.  Wisconsin was given a waiver April 10 to
implement its Parental and Family Responsibility Demonstration
Program and Maryland was given waivers on July 1 to operate the
Primary Prevention Initiative.

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