HHS News Release

HHS Secretary Donna E. Shalala today announced approval of modifications to the Indiana Manpower Placement and Comprehensive Training Act (IMPACT). This is the second welfare waiver application approved for Indiana and the 70th state demonstration approved under the Clinton Administration.

"As President Clinton prepares to sign historic welfare reform legislation that fulfills his principles of requiring work and promoting parental responsibility, he also continues his commitment to state flexibility," said Secretary Shalala. "This waiver builds on Indiana's promising demonstration and lays a strong foundation for its new welfare program. I commend Gov. Bayh for his continuing leadership on welfare reform."

Under the modifications approved today, Indiana will limit the amount of time any family member may receive Aid to Families with Dependent Children (AFDC) benefits to 24 months, with exceptions. It will extend the time limit one month for each six-month period of employment by any member of the family. Extensions will also be granted when the family has substantially complied with self- sufficiency plans and JOBS requirements and is still unable to find work that pays at least the AFDC benefit amount.

Adult AFDC recipients must register for work at the local employment and training office and participate in the Community Work Experience Program as a condition of eligibility. Mothers will be exempt from working only during the first 12 weeks of the new child's life, and most minor parents will be required to live with a parent or guardian. The income and resources of the adults will be considered when determining eligibility for the minor parent and child.

The family cap provision is being modified to allow a $29.50 monthly voucher for any child conceived while the family is on AFDC. Children born with substantial physical or mental disabilities can receive full benefits.

Anyone who quits a job of 20 hours per week or more will lose their benefits for six months, or will not be eligible to apply for AFDC for six months. Sanctions are being increased against poor school attendance, defined as three or more absences in any semester or grading period. There will be tougher sanctions for failure to cooperate with child support requirements, and tougher penalties for fraud.

Employed AFDC recipients will be given the opportunity to receive child care benefits in lieu of an AFDC payment, and the state can use savings from the demonstration to fund additional child care benefits.

"With this demonstration, Indiana moves closer to ending welfare as we know it," said Mary Jo Bane, assistant secretary for children and families. "Indiana families will now have an improved opportunity to achieve self-sufficiency."

IMPACT will operate for seven years and include a rigorous evaluation.

Under the welfare reform bill passed by Congress, states that have waivers approved prior to the law's enactment generally may continue their waivers even when they conflict with the legislation.

Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Contact: Michael Kharfen (202) 401-9215