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News Release

HHS ANNOUNCES SIXTH STRAIGHT YEAR OF DECLINES
IN WELFARE CASELOADS

HHS Secretary Tommy G. Thompson announced today that the number of people receiving assistance under the Temporary Assistance for Needy Families (TANF) program declined for the sixth straight year.

Totals for fiscal year 2002 show recipient caseloads ended the year at 4,995,719 -- decline of 6.2 percent since the end of previous fiscal year and a decline of 59.2 percent since August of 1996, when the TANF law went into effect. Additionally, families receiving TANF benefits declined 3.9 percent to 2,024,691 since the end of the previous fiscal year. Overall, since the TANF legislation was enacted in August of 1996, the number of families receiving TANF assistance has dropped by 54.1 percent, according to statistics from HHS' Administration for Children and Families (ACF).

"Families all around America are living better, more productive lives, thanks in part to the welfare reform law of 1996," Secretary Thompson said. "We shattered the culture of dependency that the old welfare program created and replaced it with a new spirit of independence that will benefit families for generations to come. But we must not be content with the status quo. We must take the next step in welfare reform to help American men and women begin and continue to climb the career ladder. That's why Congress must vote as soon as possible to vote on reauthorization legislation based on the President's bold and visionary proposal."

The 1996 TANF law expired on Oct. 1, 2002, and is operating under an extension. President Bush's proposal to reauthorize TANF takes the next step in welfare reform by strengthening work requirements, providing the assistance families need to advance in their careers and granting states more flexibility to run successful programs.

"Many critics said that while welfare-to-work programs might operate successfully in a booming economy, these programs would fail in a less strong economy," HHS Assistant Secretary for Children and Families Wade F. Horn said. "However, comparing the TANF caseloads with unemployment figures, it is clear that although unemployment had risen nationwide and the country is experiencing a recession, TANF caseloads did not increase nationally. Between March 2001, when the recession began, and September 2002, caseloads declined 4 percent for families and 8 percent for recipients."

State caseload statistics are available at http://www.acf.dhhs.gov/news/stats/newstat2.shtml.

More information on the administration's proposal is available on the Internet at: http://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 http://www.hhs.gov/news.

Last Revised: February 11, 2003