ey get more or if they decrease the number they get less. In essence the states that reduce the number of recipients are penalized and the states with an increase in number are rewarded. Under the reform law, a new funding system was established. Each state will be given a fixed dollar amount which will be increased gradually from year to year and if a state reduces its number of beneficiaries, it’s federal grant will not be cut. The state keeps any surplus of the grant and can then apply the funds to other assistance programs to help the poor. Conversely, any state that has an increase of recipients will have to bear the added cost. Second, the reform slows the growth of welfare spending. The reform legislation will slow the rate of growth to around 35 percent from 50 percent over the next seven years to permit future common state spending in programs such as AFDC, Food Stamps, Supplemental Social Security Income, child nutrition programs, Foster Care, Social Services Block Grant and Earned Income Tax Credit, to expand faster than the rate of inflation. The third advancement will provide incentives to reduce illegitimacy. With the collapse of marriage, the number of babies born out of wedlock is nearly at one-third of all American children. The reform bill combats illegitimacy in three ways. 1) The reform bill requires each state government to set a numerical goal for reducing the number of babies born out of wedlock over the next ten years. 2) The bill offers an incentive of bonus funding to the state if it decreases the number of illegitimate births without the abortion rates increasing. 3) The law funds a 50 million-dollar program to educate abstinence to youth. Finally, the fourth major way of reform is that the law will establish work requirements. Remember the main goal of welfare is to reduce the number of people receiving aid by putting them into jobs. Under the new law, AFDC recipients will be required to t...
