- The Personal Responsibility and Work Opportunity Act (PRWORA) was signed on August 22, 1996. - Clinton vetoed two former Welfare Reform acts but on the third version he signed off on. -
It did many things such as proved Family Cash Aid. This ended unlimited funding for family cash welfare and created fixed block grants and state-designed programs of time-limited and work conditioned aid to needy families with children. A goal it had was to reduce non-marital pregnancies and to promote two parent families. It required states to engage recipients in state defined work after 24 months of aid, achieve minimum participation rates in federally recognized work activities, and spend on needy families from their own funds at least 75%of the sum they spent.
It helped improve laws for food stamps and child care. For food stamps it gave states more control over food stamp operations and coordination with family cash aid, added work rules for adults without dependents and expanded existing work requirements, cut future benefits, placed greater limits on eligibility, and expanded penalties for violating rules. For child care it created a mandatory block grant for child care to low-income families and gave states more flexibility to design child care policies.
The Significance of this was that it helped many families who needed the help and it limited the help which states were able to give because people used to abuse it. It also was significant because it was expected that the law would cut mandatory federal spending by a net total of $54.1 billion over 6 years.
A fun fact that I found about the Welfare Reform Act was that it made teenage parents who are under 18 stay in school even if they need the money to provide to their family.