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News Release

WELFARE CASELOADS CONTINUE DOWNWARD TREND
Number of Recipients Falls 5 Percent Between December 2001 and June 2002

HHS Secretary Tommy G. Thompson announced today that the number of people receiving assistance under the Temporary Assistance for Needy Families (TANF) program declined between December 2001 and June 2002.

During that time, the number of recipients of TANF benefits declined by 267,000 to roughly 5 million people -- a 5.1 percent decline. The number of families receiving TANF assistance dropped by more than 75,000 to about 2 million -- a 3.6 percent decline, according to the statistics from HHS' Administration for Children and Families (ACF).

"This latest report simply reaffirms that welfare reform in America is working," Secretary Thompson said. "Despite some tough economic times, our reformed welfare system continues to move more people off of public support and into the workforce. But we can't be satisfied with our current successes. We must improve upon our existing program so that it completes the transition of individuals from dependence upon a welfare check to the independence of a paycheck."

"To accomplish our goals, Congress must act on the President's proposal -- this year," Secretary Thompson said. "The House has passed reauthorization legislation based on President Bush's bold and visionary proposal. Now, the Senate must do the same, as soon as possible."

Since the welfare reform law creating the TANF program was enacted on August 22, 1996, the number of welfare recipients has declined by 59 percent. There are more than 7 million fewer people receiving welfare since the passage of the law.

"The widespread decline in caseloads is a good sign that the economy is on the rebound and that welfare reform not only works during economically difficult times, but is helping the nation recover by preparing recipients to take quick advantage of economic opportunities. Importantly, it also confirms that this program has sufficient funding to serve our clients and improve our programs," said Dr. Wade F. Horn, Assistant Secretary for Children and Families, U.S. Department of Health and Human Services, whose agency is responsible for the oversight of the TANF program.

The full report is available at www.acf.dhhs.gov/news/stats/newstat2.shtml.

President Bush's proposal to reauthorize TANF takes the next step in welfare reform by strengthening work requirements, providing the assistance families need to climb the career ladder and granting states more flexibility to run successful programs. Information on the administration's proposal is available on the Internet at www.whitehouse.gov/news/releases/2002/02/20020226.html.

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Note: All HHS press releases, fact sheets and other press materials are available at www.hhs.gov/news.

Last Revised: November 1, 2002