2026 Marks 30 Years of Welfare Expansions and Reforms

  • The Personal Responsibility and Work Opportunity Reconciliation Act (known as welfare reform) was passed in 1996, implementing work requirements. 
  • Welfare reform led to good outcomes: the poverty rate fell, more people gained economic independence, and employment among single mothers rose dramatically while their participation in welfare was nearly cut in half. 
  • Since then, economic downturns, the Affordable Care Act, and the COVID-19 pandemic have expanded public aid and eroded work requirements. Now, tens of millions of people are reliant on the government, without an off-ramp.

Welfare Spending Has Only Grown, And So Has Waste And Abuse

  • The U.S. spends over $1 trillion annually on over 80 anti-poverty programs. Four programs take up the majority of spending: Medicaid, Supplemental Nutrition Assistance Program, Supplemental Security Income, and the Earned Income Tax Credit. 
  • A full 85% of this spending is automatic through mandatory spending in entitlement programs and is continuous unless laws change. Only 15% is managed by Congress through appropriations. 
  • Welfare is highly vulnerable to fraud, waste, and abuse. Medicaid, Medicare, the EITC, and SNAP made up 67% of the $186 billion in government-wide improper payments in 2025.

Congress Should Reform Welfare and Prioritize Work

  • Able-bodied adults, including parents, comprise a significant portion of poverty programs, yet are not participating in the labor force. Nearly two out of three non-disabled working-age adults who are enrolled in SNAP are out of the workforce. 
  • Federal programs must verify eligibility before granting benefits and use technology to expedite this process. One pilot program identified 14 million cases of duplicate participation in Medicaid, SNAP, and TANF. 
  • Eligibility for public assistance needs to be strict. Categorical eligibility often exempts participants from income and asset limits. These programs must be reserved for those who are truly vulnerable. 

Click HERE to read the policy focus and learn more about welfare reform.