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Cutting The Cost Of Welfare

Fri., Feb. 10, 1995, midnight

More than 40 federal programs, including the government’s main cashassistance program, Aid to Families with Dependent Children, would be rolled into three grants to the states with only a few strings attached.

With few exceptions, states could determine the type and level of benefits and who is eligible to receive them. In return, Washington would cut back on the amount it spends on welfare.

The three grants include:

A cash welfare payment that would combine a half dozen current programs and cap spending for five years. Estimated savings - $7.6 billion;

A child care payment that would roll together about a dozen current child care programs. Estimated savings - $3.6 billion;

A child welfare payment that would consolidate 24 programs. Estimated savings - $4 billion.

Cutting off benefits:

The Republican plan also would prevent legal immigrants, alcoholics and drug addicts from receiving benefits. Estimated savings - $23 billion.

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