# VIII. Out-of-Wedlock Pregnancies and Births

An additional central objective of TANF is to "prevent and reduce the
incidence of out-of-wedlock pregnancies and establish annual numerical
goals for preventing and reducing the incidence of these pregnancies."

## Out-of-Wedlock Births in TANF Families

The TANF statute requires the Department to rank States based on a ratio
of the total number of out-of-wedlock births in TANF families to the
total number of births in TANF families and to show the net changes in
the ratios between the current year and the previous year. (See Table
8:1 for FY 2001 data and net changes between FY 2000 and FY 2001.)

States were required to report data on out-of-wedlock births in TANF
families for the first time in 2001 for the period FY 2000. Some States
had difficulty in reporting, and some State data may have been
incomplete or inaccurate. Many of these data issues have since been
resolved. Currently, the Department does not have enough information to
analyze thoroughly these data or identify State trends.

## Out-of-Wedlock Birth Reduction Bonus

Also as provided in the TANF statute, the Department awards a "Bonus to
Reward Decrease in Illegitimacy Ratio" to as many as five States (and
three Territories, if eligible) that achieve the largest decrease in
out-of-wedlock births without experiencing an increase in their abortion
rates above 1995 levels.

The Administration for Children and Families issued final regulations on
this bonus provision on April 14, 1999, implementing section 403(a)(2)
of the Social Security Act. As specified in the statute, up to \$100
million annually is available in each of fiscal years 1999 through 2002.
Potentially eligible States include the 50 States of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, Guam, the
United States Virgin Islands, and American Samoa. The amount of any
award for Guam, the Virgin Islands, and American Samoa will be 25
percent of their mandatory TANF ceiling amount. The remainder of the
\$100 million will be divided equally among the other eligible States up
to a maximum of \$25 million for each eligible recipient.

Bonuses are awarded as follows:

-   The ratio of out-of-wedlock births to total births is calculated for
    each State for the most recent two-year period for which data are
    available and for the prior two-year period. To compute these
    ratios, HHS uses the vital statistics data compiled annually by the
    National Center for Health Statistics, based on records submitted by
    the States.

-   The five States that had the largest proportionate decrease in their
    ratios between the most recent two-year period for which data are
    available and the prior two-year period are identified. These States
    are potentially eligible.

-   If Guam, the Virgin Islands, and American Samoa had a comparable
    decrease in their ratios (i.e., a decrease at least as large as the
    smallest decrease among the other qualifying States or a decrease
    that ranks among the top five decreases when all States and
    Territories are ranked together), they are potentially eligible.

-   The potentially eligible States and Territories are notified that,
    to be considered for the bonus, they need to submit data on the
    number of abortions performed in their jurisdiction for the most
    recent year and for 1995.

-   HHS determines which of the potentially eligible States and
    Territories also experienced a decrease in their rate of abortions
    (defined for the purposes of this bonus to be the ratio of abortions
    to live births) for the most recent calendar year compared to 1995,
    the base year specified in the Act. These States and Territories
    will receive a bonus award.

-   While the criteria for determining bonus eligibility for Guam, the
    United States Virgin Islands, and American Samoa are the same as for
    the States, their eligibility is determined separately and their
    bonus amount is different, as specified in the statute, i.e.,
    sections 403(a)(2)(B)(ii) (Amount of Grant) and 403(a)(2)(C)(i)(I)
    (Definition of Eligible State).

In 1999 and 2000, five States were awarded a bonus. In 2001, only three
States received a bonus. In 2002, six jurisdictions received a bonus:
Alabama, Colorado, District of Columbia, Michigan, Texas, and the Virgin
Islands. (Tables 8:5 through 8:8 contain the information on which these
awards were based.)

## Out-of-Wedlock and Teen Births Among the General Population

The National Center for Health Statistics (NCHS) at the Centers for
Disease Control and Prevention in HHS is responsible for collecting and
analyzing vital statistics data. Based on preliminary numbers of births
for 2001, NCHS data show that the birth rate for unmarried women aged
15-44 years declined slightly in 2001 to 44.9 births per 1,000 women,
compared with 45.2 in 2000. The preliminary 2001 birth rate is still
four percent below the 1994 peak (46.9). The proportion of all births
that were out-of-wedlock rose to 33.4 percent in 2001, compared with
33.2 in 2000. Since 1994, the proportion has changed very little,
ranging from 32.2 to 33.4 percent (Tables 8:2 through 8:4). After
several decades of sharp increases, non-marital childbearing leveled off
during the second half of the 1990s and 2000-2001.

## Appendices

Table 8:1 Number of Total and Out-of-Wedlock Births in TANF Families for
Fiscal Year 2001; Ratio of Out-of-Wedlock to Total Births for Fiscal
Years 2000 and 2001, with State Ranks from High to Low; and Change in
Net Ratios from Fiscal Year 2000 to Fiscal Year 2001, with State Ranks
from Low to High (listed alphabetically by State)

Table 8:2 Number, Rate, and Percentage of Births to Unmarried Women:
United States, 1980 and 1985-2001

Table 8:3 Number and Percent of Births to Unmarried Women: United States
and Each State and Territory, 2000, and Percent of Births to Unmarried
Women, United States and Each State and Territory, 1996-2001, by Place
of Residence

Table 8:4 Number and Percent of Births to Unmarried Women: United States
and Each State and Territory, 2000, in Ascending Rank Order by Percent

Table 8:5 Percent of Births to Unmarried Women, 1994-95 Average and
1996-97 Average, and Percent Change in the Percent of Births to
Unmarried Women, 1994-95 to 1996-97, United States and Each Territory
(alphabetically ordered) \[State Data for the FY1999 Out-of-Wedlock
Bonus Awards\]

Table 8:6 Percent Change in the Percent of Births to Unmarried Women,
1995-96 Average and 1997-98 Average, Percent Change in the Percent of
Births to Unmarried Women, 1995-96 to 1997-98, United States, Each State
and Territory (alphabetically ordered) \[State Data for the FY 2000
Out-of-Wedlock Bonus Awards\]

Table 8:7 Percent Change in the Percent of Births to Unmarried Women,
1996-97 Average and 1998-99 Average, Percent Change in the Percent of
Births to Unmarried Women, 1996-97 to 1998-99, United States, each State
and Territory (alphabetically ordered) \[State Data for the FY 2001
Out-of-Wedlock Bonus Awards\]

Table 8:8 Percent Change in the Percent of Births to Unmarried Women,
1997-98 Average and 1999-2000 Average, Percent Change in the Percent of
Births to Unmarried Women, 1997-98 to 1999-2000, United States, each
State and Territory (alphabetically ordered) \[State Data for the FY
2002 Out-of-Wedlock Bonus Awards\]

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