HHS Approves Seventh California Welfare Waiver

HHS News Release

HHS Secretary Donna E. Shalala today approved an amendment to California's "Work Pays Demonstration Project." This is the seventh welfare waiver application approved for California and the 79th state demonstration approved under the Clinton administration.

The amendment will encourage minor parents to live at home by disregarding income from grandparents living in the same household when determining welfare eligibility.

On Aug. 22, 1996, President Clinton signed into law the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. This landmark law transforms the welfare system into one that requires work, time limits assistance, gives states flexibility to design their welfare programs, promotes parental responsibility, strengthens child support enforcement and provides new funds to states for child care to help families move from welfare to work.

The new welfare law gives states until July 1, 1997, to file their state plans and operate their new welfare programs. It also allows the federal government to approve certain waivers submitted prior to Aug. 22, 1996, allowing states to operate certain features of their welfare reform demonstration prior to submitting their new welfare reform plans.

"The President urged states to ensure a better future for young parents and their children by requiring them to live at home or in an adult-supervised setting, and California is taking up this challenge," HHS Secretary Donna E. Shalala said.

"By exempting the income of grandparents, young parents will have an even greater incentive to live at home and get the support they need to become better role models and providers for their children," said Olivia Golden, acting assistant secretary for children and families.

Separate from the amendment, California will require teen parents to live at home with their parents. President Clinton recently encouraged states through Executive Action to adopt this requirement under current law, and California does not require a waiver to make this change. The new welfare law also requires teen parents to live at home, with a guardian or an adult- supervised setting.

The demonstration is authorized through June 30, 1999.

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