Welfare and Income Support Frequently Asked Questions
Question:
What is welfare, and how many rural families receive welfare benefits?
Answer:
Welfare is a federally-funded public assistance program, also known as
Temporary Assistance to Needy Families (TANF). TANF is
time-limited and provides payments to poor families. TANF benefits are
funded through block grants to states, and each state has some flexibility
in how it implements the program. TANF recipients are required to participate
in work-related activities or find work within a specific time frame.
TANF was originally enacted
in 1996 and reauthorized in the Deficit Reduction Act of 2005. TANF replaced
Aid to Families with Dependent Children (AFDC).
According to the September 2004 report
Welfare Reform: Rural TANF Programs Have Developed Many Strategies to Address Rural Challenges from the Government Accountability Office, about 293,000 families living in rural counties receive TANF assistance and approximately 14% of TANF recipients live in rural areas. Rural TANF families tend to be concentrated in counties that have high unemployment and a less educated population.
Question: What
impact will new TANF provisions in the Deficit Reduction Act (DRA)
have on how state governments implement TANF?
Answer: States will be required to achieve
higher work participation rates among TANF recipients or face financial
penalties. In order to meet the work participation requirements, states
may need to make changes to their welfare-to-work programs, to better
meet the needs of families as TANF recipients transition to work. For
more information about the changes resulting from the DRA, please see
the National Governor's Association Center for Best Practices publication The
Wait is Over, the Work Begins: Implementing the New TANF Legislation and
the Center on Budget and Policy Priorities publication Implementing
the TANF Changes in the Deficit Reduction Act: Win-Win Solutions for
Families and States.
Question: Are there other programs that provide income support?
Answer:
General Assistance programs are state-funded income support programs. Eligibility for General Assistance varies from state to state. Unemployment benefits are funded by payroll taxes and provide limited-time income support to those who have become unemployed. Supplemental Security Income (SSI) is a federal income support program designed to help aged, blind, and disabled people, who have little or no income. It provides cash to meet basic needs for food, clothing and shelter.
Question: What are some related support programs than can help low-income workers and those leaving welfare?
Answer:
Rural, low-income workers may also benefit from food assistance programs and
housing support. For more information about these types of programs, please
see the Food and Hunger and Housing
and Homelessness information guides.
Question: How can I find out about eligibility for support programs?
Answer:
GovBenefits.gov provides information and links to nearly 1,000 federal and state benefit programs, including Temporary Assistance to Needy Families, state general assistance programs, Supplemental Security Income, and a variety of other programs that can help low-income families. You can browse benefit programs or fill out a questionnaire online to get a list of programs you may be eligible to receive.
Question: Is it harder for rural welfare recipients to find a job?
Answer:
There are fewer jobs available in rural communities, and those jobs tend to pay lower wages, which can make it more difficult for rural welfare recipients to transition to employment. Some work opportunities may be temporary or seasonal, which may lead workers to cycle on and off welfare. There are also fewer choices for employment in rural communities. Because rural communities tend to be close-knit, word can spread quickly to other employers if someone has a bad work experience, making it difficult for them to find other employment in the area.
Lower education levels and less job experience may also make it more difficult for rural welfare recipients to find jobs. Adult education options are more limited in rural areas, and it may be difficult to attend classes due to limited transportation services. For information on rural job training options, please see the Job Training and Adult Education information guide.
Question: How do limited transportation options impact rural welfare recipients?
Answer:
Rural areas typically have few public transportation options. When public transportation is available, it may involve an appointment-based service intended for occasional use rather than a regularly scheduled route that could be relied on for daily transportation to the workplace. Many low-income and unemployed rural people are not able to purchase or maintain a car to get to a job, job training, or other services. Programs that help welfare recipients purchase a car have been successful in some rural areas. For more information about rural transportation issues, please see the Transportation information guide.
Question: How do child care concerns impact rural low-income workers and those leaving welfare?
Answer:
Access to reliable, affordable child care services can be a challenge for those living in rural areas. Many rural communities do not have a day care center. When child care is available, it is often home-based and may not offer extended or weekend hours to address the needs of workers required to work shifts. For more information about rural child care issues, please see the Child Care information guide.
Question: How does access to health care impact rural welfare recipients?
Answer:
States receive federal funding to provide Medicaid coverage for health care to
eligible individuals, including certain low-income families. People who "meet
the requirements for the Aid to Families with Dependent Children (AFDC) program
that were in effect in their State on July 16, 1996" are eligible for
Medicaid coverage. Transitional Medicaid coverage is available for six months
for those who exit welfare because of increased earnings. An additional six
months of coverage is available to families below 185 percent of the poverty
line. To qualify, a family must have received welfare for at least three of
the six months immediately preceding its exit from welfare. Transitional Medicaid
coverage is important for families transitioning off welfare because many of
these families have difficulty obtaining private health insurance. Many low-income
workers either work for employers who do not offer health care benefits or
may be required to wait several months before qualifying for new coverage.
For more information about Medicaid, please see the Centers for Medicare and
Medicaid Services' Medicaid
Program: Overview and
the Kaiser Commission on Medicaid and the Uninsured's Medicaid
Resource Book. For more information about options for health care coverage,
please see the Uninsured and Undersinsured information
guide.
The
State Children's Health Insurance Program (SCHIP) is an option for low-income
families to get health insurance coverage for their children. SCHIP eligibility
varies from state to state. Some states use the program to provide health
insurance coverage for entire families. For more information about SCHIP,
please see the Centers for Medicare and Medicaid Services' State
Children's Health Insurance Program. The Insure
Kids Now! web site provides information on free
and low-cost health insurance programs for children in each state.
Dental care is important both as an aspect of general health and as an employment issue. People with poor teeth may find it more difficult to find a job, especially in the service sector where direct contact with the public is part of the job. Dental care tends to be less available in rural areas, and dentists who accept Medicaid can be even harder to find, making it difficult for rural welfare recipients to get the services they need for good oral health. For more information about rural dental issues, please see the Dental Health information guide.
In some rural communities, it can be difficult to get mental health
services or substance abuse treatment. Welfare recipients who need these
services may find it difficult to transition to employment until these
other needs are addressed. For more information about rural mental health
services, please see the Mental Health information
guide and the Substance Abuse information guide.
Question:
What are tax credits and how can they help low-income families?
Answer:
The Earned Income Tax Credit (EITC) provides support to low-income families, including those making the transition form welfare to work. Workers who qualify and file a federal tax return can receive a refundable tax credit. Many states offer a state credit that builds on the federal credit. Not everyone who qualifies for the credit is aware of its availability, and one of the challenges for rural communities is to maximize use of the program by eligible families.
Question: What is asset development and how can it help low-income rural families?
Answer:
Asset development, in the form of Individual Development Accounts (IDAs), is a method for helping low-income families develop savings. Money saved in an IDA can be used to make a downpayment on a home, start a business, or pursue educational opportunities. In rural areas, participants are often allowed to use IDA funds to purchase a car or make home repairs. IDA programs are run by nonprofit organizations that match the contributions by the saver with additional funds. In addition to limits on how the money can be spent, IDA programs require financial literacy training. Some states include IDAs in their welfare programs.
Rural IDA programs may benefit from the trust participants have for their local bank and from the willingness of local businesses to support these programs. However, lack of transportation to attend financial literacy training and limited access to funding can make it more difficult to implement IDA programs in rural communities.
For more information about IDA programs available in each state, please
see the CFED's
IDA Directory.
Question:
What are some barriers to seeking assistance?
Answer:
Many rural residents may hesitate to seek assistance because of a strong belief in the necessity of handling personal problems themselves. Local agencies and community-based organizations may find that in order to get the word out, they may have to invest time and effort on extensive outreach. Agencies providing benefits may want to consider increasing the use of electronic benefits transfer to help clients overcome the stigma associated with receiving public assistance.
In many rural communities, residents must travel far from home to access support programs. The Workforce Investment Act requires several programs to be partners in the one-stop delivery system. One-stop centers incorporate various program offices in a single location. TANF is a suggested partner, and states can require TANF to be a partner. Many one-stop centers also accept applications for food stamps and Medicaid and provide information about programs operated by community-based organizations and other providers.
Agencies providing services may want to operate during non-traditional working hours, to enable rural residents to obtain information and apply for multiple services at one time.
Question:
What agencies provide income support services in rural communities?
Answer:
State, county and local health and human service agencies provide program information and eligibility criteria and also conduct client intake and assessment related to welfare, Medicaid, the State Children's Health Insurance Program (SCHIP) and Supplemental Security Income (SSI). Caseworkers and other agency staff can also provide referrals to supportive services such as transportation and child care. Since TANF recipients are required to participate in work related activities or find work within a specific time frame (that varies at the local level), agency staff can also provide referrals to local job search, placement and training. Because many rural agencies serve relatively low caseloads, staff are more likely to have personal relationships with their clients and can use these relationships to identify specific needs and provide appropriately targeted services on a case-by-case basis.
Question: How can service providers more effectively serve the needs of rural clients?
Answer:
Historically, rural residents have relied more on informal levels of service in keeping with a strong tendency toward self-reliance, something that providers might want to consider when marketing their services. Spatial and financial limitations may necessitate greater efforts toward collaboration across agencies and programs.
There are a number of actions that providers can take to promote service
coordination within and among rural county and local programs. Providers
can set similar program eligibility requirements across programs. Eligibility
requirements that factor in the unique needs and characteristics of the
rural workforce will help to promote program coordination. For example,
easing sanction restrictions and modifying time limits in areas of high
seasonal unemployment. Alternative forms of service delivery such as
the web, the telephone, and home visits may also benefit rural residents.
Credits
Last revised 11/18/2009
