This issue of Step by Step examines Missouri data on the geographic distribution of AFDC recipients , child care capacity, and labor force participation rates of mothers of preschool children. Of particular concern are data that show many counties with the highest levels of welfare dependency are also counties with the lowest levels of working women and known child care capacity. Many are also counties with high levels of high school dropouts, teen pregnancy, and unemployment. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 was signed into law on August 22, 1996. In place of AFDC, the federal legislation creates a block grant to states to provide time-limited cash assistance to these same families.
States also have complete flexibility to determine eligibility and benefit levels.
Cash assistance under the TANF plan is restricted to a lifetime limit of five years. States are required to meet certain levels of recipient work participation or face losing a portion of their welfare block grant. This participation rate increases by 5 percent each year until 2002 when it becomes 50 percent. Individuals receiving cash assistance must work a minimum number of hours per week to be counted in the participation rate. The number of hours begins at 20 hours per week in 1997-98 and rises to 30 hours per week by FY 2000 and beyond.