HHS News Release

HHS Secretary Donna E. Shalala today announced approval of "Maximum Family Grant" (MFG), a statewide amendment to California's "Work Pays Demonstration Project." This is the sixth waiver approved for California and the 78th demonstration project approved under the Clinton Administration.

"Today, California receives approval for the 78th welfare demonstration project approved under the Clinton Administration," Secretary Shalala said. "This waiver builds on California's promising demonstrations and lays a strong foundation for its welfare program."

Under the amendment, there will be no increase in Aid to Families with Dependent Children (AFDC) benefits for additional children conceived by a family that is receiving AFDC benefits. Exceptions include children born as a result of incest or sexual assault and first-born children of minors already in an AFDC grant.

Further, the child will be eligible for Medicaid and child care services. The Food Stamp allotment for the family will increase and all child support payments for the additional child will pass directly through to the family and will not count as income when figuring benefits.

The amendment will operate until June 30, 1999, 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