HHS News Release

HHS Secretary Donna E. Shalala has approved "Families Achieving Independence" in Montana, a statewide welfare demonstration project that prevents welfare dependence, promotes work and encourages parental responsibility. Montana is the 27th state to receive approval for a welfare waiver under the Clinton administration.

"More than half of the states now have the opportunity to do real welfare reform--moving people into work and promoting parental responsibility," Secretary Shalala said. "Montana's project provides positive work incentives, support for two-parent families,
and opportunities for at-risk families to avoid welfare dependency."

The demonstration has three components: the Job Supplement program, AFDC Pathways program and Community Services program. The Job Supplement program will help AFDC-eligible families avoid becoming dependent on public assistance. Families going through financial crises can receive a one-time payment of as much as three times the monthly Aid to Families with Dependent Children (AFDC) payment they would otherwise receive, without affecting their food stamp eligibility. The state will also pass child support collections directly on to the custodial parent.

Other AFDC applicants will enroll in the AFDC Pathways component, and be required to sign a Family Investment Agreement that limits benefits to 24 months for one-parent families and 18 months for two-parent families, with exceptions. During this time
period, the recipients will be required to participate in JOBS, comply with child support enforcement provisions, and obtain medical screenings and immunizations for their children. To aid the transition to independence, earned income disregards and asset
limits will be increased. Children's AFDC benefits will not be time-limited, and they will continue to be eligible for Medicaid and food stamps.

Adult recipients who have not left AFDC at the end of the time limit will be required to enroll in the Community Services program and perform 20 hours of community work per week.

"Montana requires responsibility on the part of the recipient to get job skills and be a better parent, while the state provides the supports necessary to move people from welfare to work," said Mary Jo Bane, assistant secretary for children and families. "This
demonstration is another example of how the Clinton administration is already working with the states to turn welfare checks into paychecks."

To help integrate individuals into the mainstream economy, all participants will be required to choose between a reduced Medicaid benefit package and a partial premium payment towards a private health insurance policy. Full Medicaid coverage will be provided on an emergency basis and when certain services are needed for
employment purposes. Montana's project will operate for eight years and 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