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1994.12.15 :  Indiana Welfare Waiver

Contact:  Michael Kharfen    (202) 401-9215
December 15, 1994

                 HHS APPROVES INDIANA WELFARE WAIVER


     HHS Secretary Donna E. Shalala today approved the "Indiana
Manpower Placement and Comprehensive Training Program" (IMPACT)
Welfare Reform Demonstration Project.

     "The Indiana demonstration is a strong example of the
administration's commitment to working with the states and
leaders at all levels of government to produce real, lasting
reform," said Secretary Shalala.  "Time limits, work
requirements, child support enforcement and teen pregnancy
prevention are fundamental principles behind the Clinton
administration's goals for welfare reform."

     Under IMPACT, at any point in time, up to 12,000 job-ready
individuals will be assigned to a "Placement Track" and receive
help in job search and placement.  Once on this "Placement
Track," Aid to Families with Dependent Children benefits will be
limited to 24 consecutive months.  The time limit applies to
adult benefits only; children's benefits will not be affected. 
Case management and supportive services will continue for a
period after AFDC benefits end.

     "This project tests a number of strong measures to move
welfare recipients from dependence to independence by stressing
work and personal responsibility," said Mary Jo Bane, HHS'
assistant secretary for children and families.

     For all recipients who take jobs, earnings will be
disregarded in determining food stamp benefits for the first six
months.  There will be increased sanctions for quitting a job or
for failure to comply with program requirements.  There will also
be fewer exemptions from current JOBS participation requirements.
Another provision will extend subsidies to employers who hire
welfare recipients to a maximum of 24 months.

     A "family benefit cap" provision will disallow additional
AFDC benefits for children conceived while on AFDC; however, the
child will be eligible for Medicaid.  Children will be required
to attend school and be immunized.

     The demonstration will operate for seven years and will
include a rigorous evaluation.
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