New government figures show a profound change in welfare spending, shifting money from cash assistance into child care, education, training and other services intended to help poor people get jobs and stay off welfare.
Cash assistance payments now account for less than half of all spending under the nation's main welfare program, Temporary Assistance for Needy Families, federal officials say.
The proportion has been declining steadily since 1996, when Congress revamped welfare and abolished the guarantee of cash assistance for the nation's poorest children. The 1996 law required most adults to work within two years of receiving aid and gave states sweeping authority to run their welfare and work programs with lump sums of federal money.
"Welfare" used to mean a monthly check that could be immediately converted to cash. But statistics tabulated by the Department of Health and Human Services, at the request of The New York Times, show that the proportion of federal and state welfare money spent on cash assistance declined to 44 percent in 2002, from 77 percent in 1997. The proportion allocated to various types of noncash assistance shot up to 56 percent, from 23 percent in 1997.
http://www.nytimes.com/2003/10/13/politics/13WELF.html