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1993.04.12 :  Welfare Reform -- Vermont FIP Demonstration

Contact:  Avis LaVelle (202) 690-7850
April 12, 1993

       HHS Secretary Donna E. Shalala announced the department's
approval of a welfare reform demonstration project in Vermont. 
Secretary Shalala's action means Vermont can begin operation of
its "Family Independence Project" (FIP) next year, pending
approval of the state legislature.  The demonstration seeks to
promote work and self-sufficiency for recipients of Aid to
Families with Dependent Children.
     "The Clinton administration acknowledges the leadership role
of the states in demonstrating and rigorously evaluating
innovative welfare reform strategies.  I am pleased to approve
Vermont's Family Independence Project, an initiative designed to
promote work and family stability," Shalala said.
       President Clinton in February pledged to give states more
flexibility in testing welfare reform strategies. 
       The Vermont demonstration makes substantial changes to
Vermont's AFDC program.  For instance, a new formula will
encourage AFDC families to work by enabling them to keep more
income and accumulate more assets than is normally allowed.
       Second, most recipients who have received AFDC for a
certain period of time will be required to participate in public
or community service jobs (30 months for most AFDC families, 15
months for families participating in the unemployed parent
component of AFDC).
       Third, child support payments will bypass the state and go
directly to families entitled to receive them.  
       FIP is scheduled to begin operation on July 1, 1994, and
will run through June 30, 2001.  A rigorous evaluation, utilizing
experimental and control groups, will operate in tandem with the
demonstration.

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