Such reforms worked spectacularly well to stop the runaway costs of the old AFDC program when Congress adopted welfare reform in 1996.
This was accomplished not just by reducing discretionary spending, but through fundamental structural reforms of some programs, such as the old AFDC program.
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Under those dramatically changed incentives, within a few years two thirds left the old AFDC rolls for work, or for marriage to a working husband.
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The poor would similarly gain from extending these same reforms to food stamps, just as they gained from the reforms of AFDC, with similar savings for taxpayers.
The whole point of the 1996 welfare reform law was to give states broad discretion in revising the old Aid to Families with Dependent Children (AFDC) welfare program.
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Entitlement reforms should be based on extending the enormously successful, bipartisan, 1996 AFDC block grant reforms to all federal, means tested, welfare programs, including Medicaid and food stamps.
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That will primarily involve block granting dozens of federal means tested welfare programs back to the states, modeled on the enormously successful 1996 reforms of the old AFDC program.
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The old New Deal era Aid to Families with Dependent Children (AFDC) is now Temporary Assistance for Needy Families (TANF), which pays cash mostly to single mothers with children.
The reforms include extending the enormously successful 1996 welfare reforms of just one federal program, Aid to Families with Dependent Children (AFDC), to all federal means tested welfare programs, nearly 200.
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Romney and Ryan propose to address Medicaid by extending to the program the enormously successful 1996 welfare reforms of the old, New Deal, Aid to Families with Dependent Children (AFDC) program.
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The old AFDC rolls were reduced by two-thirds nationwide, even more in states that pushed work most aggressively, as those formerly on the program went to work, or married someone who worked.
With those radically reversed incentives, within a few years two thirds of those on the old AFDC program went to work, ultimately saving taxpayers 50% from where spending was heading under prior trends.
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Like Medicaid, federal funding for AFDC previously was based on a matching formula, with the federal government giving more to each state the more it spent on the program, effectively paying the states to spend more.
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Republicans should propose to block grant the entire Medicaid program back to the states, along with SCHIP, just as they did with the highly successful 1996 reforms of the old Aid to Families with Dependent Children (AFDC) program.
As a result, in real dollars total federal and state spending on TANF by 2006 was down 31% from AFDC spending in 1995, and down by more than half of what it would have been under prior trends.
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Those 1996 reforms changed the federal financing for the old, New Deal era, Aid to Families with Dependent Children program (AFDC) from a matching federal funding formula, which paid a state more the more it spent on the program.
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