Issue: The Personal Responsibility and Work

Opportunity Reconciliation Act of 1996 (PRWORA)

limited able-bodied adults without dependents

(ABAWDs) between the ages of 18 and 50 to 3 months

of food stamps in any 3-year period unless they were

working. States could choose to exempt ABAWDs living

in areas of the United States with high unemployment or

insufficient jobs from the new requirement. The view that

ABAWDs are able to support themselves and should be

encouraged to become self-sufficient was the underlying

cause of this change to the Food Stamp Program (Bell

and Gallagher, 2001). The legislative changes contained

in PRWORA, combined with a strong domestic economy,

contributed to a dramatic decline in food stamp caseloads

in the mid- to late-1990s. As food stamp caseloads

declined, concern arose about the well-being of people,

ABAWDs among them, who were no longer receiving

benefits from the Food Stamp Program. This concern led

to a need to evaluate whether the new rules were, in fact,

moving food stamp recipients, including ABAWDs,

toward economic self-sufficiency. 

Background: The Personal Responsibility and Work

Opportunity Reconciliation Act of 1996 dramatically

altered the system that had provided welfare cash assistance and food stamp benefits to low-income households

since the early 1970s. While the primary focus of

PRWORA was to replace Aid to Families with

Dependent Children (AFDC) with the Temporary

Assistance to Needy Families (TANF) block grant, it also

included major reforms to the Food Stamp Program.

Among those changes were some that instituted work or

work-related requirements for ABAWDs and limited FSP

participation of ABAWDs who were not working or

enrolled in work-related programs to no more than 3

months of food stamps in any 3-year period.

Many States were granted exemptions by the Food and

Nutrition Service (USDA) from PRWORA work requirements and time limits for ABAWDs residing in areas of

those States that had high unemployment rates or insufficient jobs. To obtain an exemption based on high unemployment, an area must have had an unemployment rate

in excess of 10 percent. States could use a variety of data

to demonstrate that the number of available jobs was

insufficient. Many States relied on designations of labor

surplus area (LSA) by the U.S. Department of Labor.

These are areas with an unemployment rate that exceeds

the national unemployment rate by 20 percent or more.

Further, the Balanced Budget Act of 1997 allowed States

to exempt up to 15 percent of their ABAWD cases from

work requirements and time limits, using criteria determined by the State.

The Economic Research Service, Department of

Agriculture, and the Office of the Assistant Secretary for

Planning and Evaluation, Department of Health and

Human Services, jointly funded and commissioned four

State studies (Arizona, Illinois, Iowa, and South Carolina)

that examined the well-being of ABAWDs who had left

the FSP in the post-reform era. Some ABAWD leavers in

Illinois (14 percent) and Iowa (19 percent) were rural

residents. Information on rural residency was unavailable

for Arizona and South Carolina. There are some limitations with making cross-site comparisons and generalizing study results. For instance, the studies vary,

sometimes widely, in defining the populations they study,

the time period of the surveys, and how the outcomes are

United States

Department of

Agriculture

Economic 

Research

Service

Assessing the Self-Sufficiency of 

Food Stamp Leavers

Elizabeth Dagata

Food Assistance and Nutrition Research Report Number 26-8 September 2002

IN FOOD ASSISTANCE
Assessing the Self-Sufficiency of Food Stamp Leavers / FANRR-26-8

2

measured. In three States (Arizona, Illinois, and Iowa),

the data are for ABAWDs who left the Food Stamp

Program in 1997. In South Carolina, the data were gathered for ABAWDs who left the program between 1998

and 1999. Additionally, Arizona did not collect data

statewide and focused only on ABAWD leavers living in

counties with no work exemptions. ABAWD leaver

response rates to the survey were relatively low—38

percent in Arizona (sample size = 240), 47 percent in

South Carolina (sample size = 609), and 55 percent in

Illinois (sample size = 419). The response rate for Iowa

ABAWD leavers was not available.

Findings: ABAWD leavers’ employment rates are

significant, but earnings and incomes are low and their

poverty rates are high. Some ABAWD households are

likely to require assistance in the form of income

supports and services such as job training or medical care

to achieve economic sustainability.

A major goal of the time limits set for ABAWDs by

PRWORA was to encourage self-sufficiency through

employment. ABAWD leavers’ employment rates varied

considerably among the States (table 1). At the time of

the surveys, employment of ABAWD leavers ranged from

a low of 41 percent (Illinois) to a high of 76 percent

(Iowa). Work hours for ABAWD leavers in Arizona,

Illinois, and South Carolina averaged about 37 hours per

week, while Iowa ABAWD leavers averaged about 49

hours a week. 

The majority of ABAWD leavers in Arizona and Illinois

who were not working reported poor health (or caring for

a family member in poor health) as the primary reason

for their lack of employment (table 1). Some nonworking

respondents cited difficulty in finding a job as the reason

they were not employed. In Illinois, 40 percent of

ABAWD leavers said they were unable to find a job

while only 16 percent of South Carolina ABAWD leavers

cited this reason. In Arizona, where none of the respondents lived in exempt areas, only 9 percent of ABAWD

leavers reported they could not find a job. There was no

information on the reasons given by unemployed Iowa

ABAWD leavers for their lack of employment. Education

often plays an important role in determining an individual’s employment and earnings potential, and the

surveys showed that in two States substantial shares of

ABAWD leavers had not completed high school. Over

half of respondents in Arizona (62 percent) and South

Carolina (57 percent) were high-school dropouts. In

Iowa, where the ABAWD leavers’ employment rate was

quite high, the ABAWD leavers dropout rate was

markedly lower (17 percent). There were no data on

educational attainment for Illinois respondents. 

Monthly earnings for ABAWD leavers were quite low

(table 2). Illinois respondents reported average monthly

earnings of $514. This low monthly earnings figure is

partially a reflection of the relatively small portion of

Illinois respondents who were employed. Average total

monthly earnings for Iowa ABAWD leavers’ households

also were very low—$518. Given their high rate of

employment, low dropout rate (relative to the other two

States), and very low earnings level, Iowa ABAWD

leavers were most likely living in areas with a fairly

high number of low-paying jobs and for this reason may

find achieving self-sufficiency difficult. The monthly

earnings of Arizona ABAWD leavers ($956) was relatively high, in part, because no exempt areas were

included in the survey.

However, some ABAWD leavers did have access to

sources of income other than their earnings. Nine percent

of South Carolina ABAWD leavers lived with an

Table 1—ABAWD leavers' employment characteristics

Item Arizona Illinois Iowa South Carolina

Employment rate (%) 62 41 76 55

Average hours worked per week* 37 36 49 37

Reason respondent not working (%):

Health of respondent or family member 61 52 — 21

Unable to find a job 9 40 — 16

Respondent did not complete high school (%) 62 — 17 57

— Comparable data not available. *Base: Employed respondents.

Sources: Jensen et al., 2000; Mills and Kornfeld, 2000; Rangarajan and Gleason, 2001; and Richardson, 2001.
Assessing the Self-Sufficiency of Food Stamp Leavers / FANRR-26-8

3

employed spouse/partner. Thirty-eight and 24 percent of

Arizona and Iowa ABAWD leavers lived with a

spouse/partner at the time of the survey, but information

on the employment status of the spouse/partner was

unavailable. There was no information on the share of

Illinois ABAWD leavers living with a spouse or partner.

The importance of earnings in ABAWD leavers’ household income differed between Arizona and Illinois.

Earnings of ABAWD leavers and their spouses/partners

supplied about 87 percent of household income in

Arizona, and about 75 percent of household income in

Illinois. There was no comparable earnings information

available for Iowa or South Carolina.

Public assistance and various other sources (retirement

income, Social Security, child support, etc.) make up the

remainder of household income. About 5 percent of

Arizona respondents’ household income was from

public assistance, while in Illinois about 15 percent of

household income came from this source. 

The combination of earnings and public assistance

accounted for over 90 percent of ABAWD leavers’

household income in both States, with Illinois leavers

somewhat more dependent upon public assistance for

income. There was no comparable information on

public assistance income for Iowa or South Carolina. In

all four States some of the ABAWD leavers had

returned to food stamps by the time of survey interview. 

The rates of returns to the Food Stamp Program were

highest in Illinois (29 percent) and Arizona (21

percent). Iowa and South Carolina ABAWD leavers had

rates of returns to the FSP of 19 percent and 16

percent, respectively.

Household income levels among ABAWDs who have left

the Food Stamp Program are important indicators of

movement toward self-sufficiency. If incomes from

sources other than public assistance are high, this is an

indication of movement toward self-sufficiency. Low

income suggests a difficult transition to self-sufficiency.

In Iowa and Illinois, monthly household income for

ABAWD leavers was quite low and reflects, in part, their

low earnings. Respondents in these two States had

monthly household income of $888 (Iowa) and $751

(Illinois). Monthly household income for ABAWD

leavers was considerably higher in Arizona ($1,406).

The high poverty rates for ABAWD leavers’ households

reflect their low household incomes and underscore the

difficulty that many in this group of FSP leavers face

trying to make ends meet (fig.1). About two-thirds of

Illinois and Iowa ABAWD respondents had household

income below the poverty level. 

ABAWD leavers in South Carolina and Arizona fared

somewhat better, with poverty rates of 46 percent and 37

percent. By way of comparison, the U.S. Census Bureau

reported that the 1998 poverty rate for all people was

about 13 percent (poverty data available at

http//:www.census.gov/hhes/poverty/histpov).

The portion of respondents’ households experiencing

severe poverty (income below 50 percent of the poverty

level) was highest in Illinois and Iowa. About 40 percent of

Illinois and Iowa ABAWD leavers had household income

below 50 percent of the poverty level. Much smaller shares

of ABAWD leavers in South Carolina (12 percent) and

Arizona (19 percent) experienced severe poverty. 

Table 2—ABAWDs' earnings and household income

Item Arizona Illinois Iowa South Carolina

Total household average monthly earnings ($) 1,219 567 518 —

Respondent's average monthly earnings ($)* 956 514 257 —

Respondent's average monthly earnings ($)** — — 339 1,229

Spouse/partner's average monthly earnings ($) 263 53 — —

Earnings as share of household income (%)*** 87 75 — —

Total average monthly household income ($) 1,406 751 888 905

— Comparable data not available. *Base: All respondents. ** Base: Respondents who worked. *** Respondent's and spouse/partner's earnings.

Sources: Jensen et al., 2000; Mills and Kornfeld, 2000; Rangarajan and Gleason, 2001; and Richardson, 2001.
Assessing the Self-Sufficiency of Food Stamp Leavers / FANRR-26-8

4

In addition to measuring income, the surveys measured

other characteristics of ABAWD leavers’ households that

bear on their well-being and on their ability to achieve

economic self-sufficiency. This information included the

extent to which ABAWD leavers experienced food insecurity, were covered by health insurance, and had difficulty paying for housing and/or utilities. 

In all four States, about 20 percent of ABAWD leavers

reported experiencing food insecurity without hunger.1

The prevalence of food insecurity without hunger for

U.S. low-income households with no children under 18

years of age was 15 percent in 1998 (Andrews et al.,

2000).2 Food insecurity with hunger is an indicator of

an even more severe problem (fig. 2). Between 17 and

34 percent of the ABAWD leavers reported food insecurity with hunger, compared with 11 percent of U.S.

low-income childless households.

Access to health care, through private or public insurance,

can support one’s transition to self-sufficiency. The surveys

showed that about 30 percent of ABAWD leavers in Illinois

and just over half of Arizona and South Carolina ABAWD

leavers had no health insurance of any kind, including

Medicaid. A smaller share of ABAWD leavers in Iowa,

about a third, reported having no health insurance. 

ABAWD leavers reported facing additional economic

difficulties. About 38 percent of ABAWD leavers in

Arizona reported experiencing housing problems ranging

from getting behind in their rent to becoming homeless.

Seventeen percent of Illinois ABAWD leavers faced eviction or stayed in a homeless shelter while another 20

percent reported having to move in with relatives or

friends. Twenty-nine percent of South Carolina respondents reported difficulties with paying for housing, and

32 percent of Iowa ABAWD leavers could not pay their

rent or had been evicted. 

1 Food security is defined as having access to enough nutritionally

adequate food to maintain health. Food insecurity is limited or lack of

access to a nutritionally adequate diet. Hunger is defined as involuntary hunger as a result of lack of access to enough food (ERS,

USDA). Food security data for South Carolina are from the 1999-

2000 survey.

2 Low-income households are defined as households with income

below 130 percent of the poverty level, containing no children under

18 years old.

Figure 1—ABAWD leavers' poverty rates

Source: Poverty data, U.S. Census Bureau.

*1998 U.S. poverty rate for all people.

United States* Arizona South Carolina Illinois Iowa

0

10

20

30

40

50

60

70

80

Percent

13

65

68

46

37
Assessing the Self-Sufficiency of Food Stamp Leavers / FANRR-26-8

5

In addition to housing problems, considerable portions of

ABAWD leavers, particularly those in South Carolina and

Arizona, reported problems paying for utilities. Sixty-five

percent of ABAWD leavers in South Carolina and 50

percent of Arizona ABAWD leavers had problems paying

their utility bills or had their utilities cut off. About a

third of Illinois respondents reported having their utilities

cut off. In Iowa, 21 percent of respondents lost use of

their telephones or electrical utilities.

Unresolved Issues: In general, it appears that some

of the ABAWD leavers in these studies are on the path

to economic self-sufficiency. In three of the four States,

the majority of ABAWD leavers were employed. But

earnings were low and relatively large shares of this

group had income below the poverty level. As time

passes, more ABAWD leavers may become employed

and, for those already employed, earnings will increase

and poverty and material hardship will decline. But for

some, particularly those ABAWD leavers who did not

complete high school or who live in areas where livingwage jobs are scarce, economic self-sufficiency may be

difficult to achieve.

The studies raise two important questions. The first question concerns the health status of ABAWD leavers. In two

of the studies, the majority of nonworking ABAWD leavers

cited health problems as the reason they were not working.

Because ABAWDs who can verify that they are physically

or mentally unable to work are exempt from work registration, it is important to know whether the standards for being

categorized as “able-bodied” are set appropriately. 

Second, relatively large portions of ABAWD leavers in

these studies were poor and food insecure with hunger.

Even taking into consideration ABAWD leavers’ rates of

returning to the FSP, some of the working ABAWD

leavers must have been poor and eligible for food stamps

but were not receiving them. Why are working ABAWD

leavers with incomes below the poverty level not

receiving food stamps? Granted, a few of the working

ABAWD leavers with household incomes close to the

poverty line may have had assets that disqualify them

from participation, but, at a minimum, those working

ABAWD leavers living in or near severe poverty are

almost certainly eligible to receive food stamp benefits. 

Figure 2—ABAWD leavers experiencing food insecurity with hunger

Source: Andrew et al., 2000.

*Share of U.S. low-income households (under 130 percent of poverty level) with no children under 18 years of age.

Percent

11

33 34

26

17

United States* South Carolina Iowa Illinois Arizona

0

10

20

30

40

50
Assessing the Self-Sufficiency of Food Stamp Leavers / FANRR-26-8

6

Information Sources:

Andrews, M., M. Nord, G. Bickel, and S. Carlson.

Household Food Security in the United States, 1999.

FANRR-8. U.S. Department of Agriculture, Economic

Research Service, 2000.

http://www.ers.usda.gov/briefing/foodsecurity

Bell, Stephen H., and Jerome Gallagher. Prime-Age

Adults without Children or Disabilities: The Least

Deserving of the Poor – or Are They? Urban Institute,

February 2001.

Economic Research Service, USDA. Briefing Room:

Food security in the United States.

http://www.ers.usda.gov/briefing/foodsecurity/data/index.html

Jensen, Helen J., Steven Garasky, Cory Wessman, and

Sarah M. Nusser. What is Happening to Food Stamp

Program Exiters in Iowa? Iowa State University, October

2000 (Paper presented at the Association for Public

Policy Analysis and Management 22nd Annual Research

Conference, held Nov. 2-4, 2000 in Seattle, WA).

Mills, Gregory, and Robert Kornfeld. Study of Arizona

Adults Leaving the Food Stamp Program: Final Report. 

E-FAN-01-001. U.S. Department of Agriculture,

Economic Research Service, December 2000. 

http://www.ers.usda.gov/publications/efan01001

Poverty data available at:

http://www.census.gov/hhes/poverty/histpov/hstpov2.html

Rangarajan, Anu, and Philip M. Gleason. Food Stamp

Leavers in Illinois—How Are They Doing Two Years

Later? E-FAN-01-002. U.S. Department of Agriculture,

Economic Research Service, January 2001.

http://www.ers.usda.gov/publications/efan01002

Richardson, Philip (Project Director). Study of ABAWDs

Leaving the Food Stamp Program in South Carolina.

Maximus, Inc., September 2001 (draft of final report).

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