HHS News Release

HHS Secretary Donna E. Shalala today approved "Family Investment Program," a statewide welfare demonstration project for Maryland. About two-thirds of all the states have now received welfare waivers under the Clinton administration.

"Even as Congress postpones action on welfare reform, the Clinton administration proceeds with its pledge to give states the flexibility to end welfare as we know it," said Secretary Shalala. "Under Governor Parris Glendening's leadership, Maryland follows the President's goal of moving people from welfare to work and promoting
parental responsibility."

Under a pilot demonstration in Anne Arundel and Prince George's counties and parts of Baltimore, able-bodied Aid to Families with Dependent Children (AFDC) applicants must participate in job search as a condition of eligibility. If a recipient fails to comply with
the Job Opportunities and Basic Skills Training (JOBS) program for six months, the case will be closed resulting in denial of AFDC benefits for all members of the family. The case will be reopened if the parent complies with JOBS requirements for 30 days. For
closed cases, the state will provide funds for non-cash transitional assistance, such as child care, to a third party, such as a non-profit organization, to help the family for up to three months.

In the pilot area, families facing a short-term financial crisis can receive a one-time payment equal to three months of benefits rather than applying for AFDC. If later, a family applies and receives AFDC, the one-time payment will be deducted from their
benefits.

Under the pilot, the income of dependent children will not be counted in determining AFDC eligibility, and the resource and vehicle value limits will be raised to $5,000. AFDC eligibility will be extended to two-parent families by allowing the principal
wage earner to work more than 100 hours a month. Parents who do not cooperate with child support or family parenting will have benefits reduced. They will still be able to receive child care and JOBS services.

In the statewide portion of the demonstration, unmarried minor parents must reside with a parent or guardian, with some exceptions, who will serve as protective payee for the AFDC benefit. Minor parents must also attend family health and parenting classes.

Maryland, statewide, will eliminate automatic benefit increases for additional children conceived while receiving AFDC. However, the family can retain child support payments for the additional child, and the state will issue voucher payments for the purchase of goods for the child, up to the amount of the increase the family would otherwise receive.

"Maryland combines innovative features of preventing welfare dependency, using strong incentives and sanctions for work, and requiring responsibility from teen parents," said Mary Jo Bane, assistant secretary for children and families. "This demonstration will give the country another opportunity to learn how to turn a welfare check into a paycheck."

The project will operate for 2 years and 9 months, and will include a rigorous evaluation.

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