Even Democrats Say Clinton Is Busting Welfare Reform State governors and congressmen from both political parties are protesting President Clinton's decision May 15th to apply minimum wage laws to most welfare recipients being placed in work programs. Only labor union bosses are cheering the policy, which they had urged upon the White House. The decision marks the second time in recent weeks that the White House has sided with union leaders on issues arising from the welfare reform law which was passed last year. On May 2, the President axed a Texas plan that would have allowed private corporations to participate in administering social services programs.
Observers say the decision has the potential to gut welfare reform's work requirements.
Experts say the controversy arises from what amounts to an oversight in drafting the legislation. While previous welfare laws explicitly outlined when minimum wage laws applied, the current law is silent. Among the issues remaining to be clarified is how the wage would be calculated. According to a White House aide, under some circumstances states could also include the value of food stamps when calculating the effective wage. The Labor Department, however, contends that food stamps could be counted only in certain limited circumstances, and the value of Medicaid benefits could not be added in.