the “welfare reform act.” The new law replaced AFDC with Temporary Assistance for Needy Families (TANF).

LINK IT UP

Visit this website (http://openstax.org/l/Clinton_speech) to watch a video of President Bill Clinton’s Welfare

Reform speech.

TANF brought several dramatic changes in how welfare operated. Under the old AFDC program, states set the

level of welfare benefits that they would pay to people experiencing poverty, and the federal government

guaranteed it would chip in some of the money as well. The federal government’s welfare spending would rise

or fall depending on the number of people in need, and on how each state set its own welfare contribution.

Under TANF, however, the federal government gives a fixed amount of money to each state. The state can then

use the money for almost any program with an antipoverty component: for example, the state might use the

money to give funds to families with low income, or to reduce teenage pregnancy, or even to raise the high
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