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Analysis on Child Welfare Reform Legislation

Effective October 1, 1996, entitlements to child care for parents receiving cash assistance and for those making the transition from welfare to work are eliminated. Since these open-ended funding streams are capped under the new law, states have a limited number of child care dollars. Because of the law's greatly expanded work requirements and the subsequent increased need for child care, child care funding is estimated to fall short of what is required.

In view of this situation, the Coalition on Human Needs urged President Clinton to submit an Urgent Supplemental Appropriations request to Congress to develop a system to monitor implementation and outcomes by HHS, USDA and other governmental entities. The most likely issues to be dealt with in 1997 include services for legal immigrants, Food Stamps, and job creation.

Fast forward to August 1997, when the Balanced Budget Act of 1997 (Public Law 105-33) was enacted. Significant changes were made in children's health, welfare, medicaid and medicare. Broad policy changes were made to the federal entitlement programs. New federal dollars will be devoted to provide health insurance coverage for an uninsured population, children. Nearly $13 billion in federal spending will be used to restore some coverage for special populations that were eliminated through last year's welfare reform legislation. States will be granted flexibility in administering their Medicaid programs, and an opening now exists for increased privatization of Medicare through new coverage options for beneficiaries.

The new law commits new federal spending of $24 billion over five years for children's health, with a total commitment to expend over $40 billion for the initiative over the next 10 years. States must have an approved plan, which is submitted to the Department of Health and Human Services (HHS). Funding is available beginning October 1, 1997. Ninety percent of a state's allocation must be spe...

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Analysis on Child Welfare Reform Legislation. (1969, December 31). In Retrieved 04:52, September 21, 2017, from
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