HHS News Release

HHS Deputy Secretary Walter D. Broadnax today announced the department's approval of a welfare demonstration in the state of Wisconsin. The demonstration will operate in two Wisconsin counties.

Under the plan, called "Work Not Welfare," most recipients of Aid to Families with Dependent Children cash assistance will be required to work or look for jobs. The plan provides case management, employment activities and work experience to facilitate employment. Generally, receipt of AFDC cash assistance would be time-limited, except under certain conditions, such as inability to find employment in the local area due to lack of appropriate jobs.

"Our approval of Wisconsin's demonstration shows that the Clinton administration is serious about providing states with the flexibility needed to test innovations," Broadnax said. "This is one of several state demonstrations designed to test the concept of time-limited receipt of AFDC benefits."

The Wisconsin program also includes the following elements which will affect the state's AFDC program:

*With exceptions, receipt of AFDC benefits will be limited to two years in a four-year period, and once benefits are exhausted, recipients are ineligible for 36 months;

*The 100 hour work rule is eliminated; and

*Child support will be paid directly to the AFDC custodial parent in cases where the funds are collected by the state.

The demonstration will be carefully evaluated and will run for 11 years.

HHS Secretary Donna E. Shalala, who was chancellor of the University of Wisconsin and remains a professor on leave from the state-supported university while serving at HHS, recused herself from the Wisconsin waiver decision.

Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Contact: David Siegel (202) 401-9215