HHS News Release

HHS Secretary Donna E. Shalala today approved "Reach for Jobs First," the second statewide welfare reform demonstration for Connecticut under the Clinton administration. The Clinton administration has now approved a total of 50 demonstration projects in 35 states.

"While Congress still stalls on real welfare reform, the Clinton administration will ontinue to grant states the ability to promote work, parental responsibility and protect kids one state at a time," said Secretary Shalala. "Connecticut provides both strong incentives and tough requirements to move people off welfare intowork."

Connecticut will limit Aid to Families with Dependent Children (AFDC) payments to 21 months for employable adults. The state will grant extensions when, despite good faith efforts to comply with the state's requirements, the participant is unable to obtain or retain a job which provides income, in combination with other sources that is at least equal to the AFDC benefit. Recipients will be required to spend at least 12 weeks in jobs search.

To encourage the transition from welfare to work, families will be able to keep all that they earn while on AFDC, up to the federal poverty line for the family's size. Those subject to the time limit will be given priority for participation in JOBS, and non-custodial parents may also participate.

Minor parents will be required to live in an adult-supervised setting, with the AFDC benefit issued to the adult. The amount of the AFDC benefit increase for a child is conceived while the mother is on AFDC will be reduced by half.

As a further incentive to employment, transitional child care and Medicaid will be available to those who become employed within six months of losing AFDC eligibility for any reason. Medicaid coverage will be provided for 24 months and child care for as long as the family's income is less than 75 percent of the state's median
income.

There will be progressive sanctions for failure, without good cause, to comply with JOBS or child support requirements, including elimination of benefits to the full family for a third offense. The state will also make administrative changes to simplify eligibility
procedures.

"Connecticut has taken a bold step in the effort to change welfare as we know it," said Mary Jo Bane, assistant secretary for children and families. "The state has recognized the importance of expanding income disregards to make work pay and providing child care to give parents support to stay successfully in the
workforce."

The project will operate for five 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