HHS News Release

HHS Secretary Donna E. Shalala today approved "A Better Chance," a statewide welfare demonstration project for Delaware. Delaware is the 28th state to receive approval to implement a welfare reform demonstration under the Clinton Administration.
Under Delaware's demonstration, all Aid to Families with Dependent Children (AFDC) program participants will be required to sign and comply with a Contract of Mutual Responsibility. The contract will specify employment-related activities as well as other
activities leading to self-sufficiency.

The demonstration sets a time limit of 24 months on cash benefits for able-bodied adults over 19 years old. It will also require teen parents to live in an adult supervised setting, attend school, participate in parenting and family planning education, and
immunize their children. "More than a dozen states now recognize that a critical key to
success in welfare reform is a contract that moves people from welfare to work," said Secretary Shalala. "Delaware's demonstration strengthens the principles of work and parental responsibility."

Delaware joins 14 other states with demonstrations requiring recipients to sign contracts in order to be eligible for benefits. The contracts are similar to the "personal employability plan," a key feature of the President's Work and Responsibility Act with the goal of promoting employment and parental responsibility. Failure to meet the requirements results in penalties and loss of benefits. Secretary Shalala said the President believes a contract is essential to aggressively move people into work and must be a part of any welfare reform legislation from the Congress.

The demonstration imposes gradual sanctions that can lead to the whole family losing benefits if participants fail to meet education and employment requirements. Parents will not receive an increase in AFDC payments for additional children conceived while the family is on assistance. Participants will also be denied benefits if they fail to cooperate with child support enforcement. "Delaware combines strong incentives and sanctions that will encourage parents to get the education or training they need to become economically self-sufficient," said Mary Jo Bane, assistant secretary for children and families. "The demonstration focuses on teen-agers, emphasizing staying in school and preparing for work to prevent the next generation from becoming welfare dependent."

Delaware will encourage young people to stay in school by giving a $50 bonus payment to teens who graduate from high school. The demonstration also helps parents move to work by providing 12 more months of transitional child care and Medicaid benefits, in addition to the 12 months currently provided by law. The demonstration is expected to begin later this year and will operate for seven years, and will include a rigorous evaluation.

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Contact: Michael Kharfen (202) 401-9215