Hyperventilating press releases were flying off the fax machines on July 31 and early in August after President Clinton announced that he would sign this year's welfare reform act. Liberal lobbying groups like the Children's Defense Fund were proclaiming that Congress and a cowed president were ruthlessly eliminating safeguards for the poor. But lapdog newspapers and network news shows instead relayed accusations and skipped by facts. States can exempt up to 20 percent of their total caseloads from the limits, based on individual circumstances. Through a contingency fund, any state with an unemployment rate of 6.5 percent and worsening conditions can receive a 20 percent augmentation of the block grant.
States can also tap into a federal revolving loan fund.
The legislation maintains the Medicaid entitlement to families on welfare, and provides a year of transitional Medicaid benefits to persons who leave welfare for work. Veterans of the U.S. military or persons who have worked and paid taxes in the United States for at least 10 years retain all benefits, as do refugees. Others become ineligible for food stamps or SSI, but can still tap into dozens of other federal programs, including those subsidizing emergency medical services and disaster relief. Persons who are mentally or physically unfit for employment, and parents or others who have responsibility for a dependent child, are exempt from the work requirements. Results from states such as New Jersey that have enacted welfare reforms do not indicate any abortion surge.