These are the first grants nationally to study the effectiveness of such services. States receiving awards will be offering a wide array of services including case management, assistance with time and money management, and links to child care and other support services. Case managers will also provide information about the Earned Income Tax Credit, recently expanded with leadership from the Clinton administration, to provide essentially a 40 percent pay supplement for the working poor. The Earned Income Tax Credit was a critical first step in welfare reform, because it ensures that most parents who work full time will not have to raise their children in poverty. These projects will help us explore what else people need to make a successful transition from welfare to jobs that support their families.
Recent research reveals rapid movement between welfare and work.
More than half of all women applying for welfare leave within a year. By the end of two years, the percentage who have left increases to 70 percent. However, most people do not stay off welfare. Up to 70 percent of those who leave will eventually return. Our vision of welfare is a transitional program helping people go to work.