H.R.1167: Welfare Reform Restoration Act

Bill provisions
Spending Cap on Wide Range of Programs

The heart of the bill is a change to the budget rules that would impose a cap on total federal spending on a list of 77 programs at their 2007 levels, adjusted for inflation (CPI-U). While the bill labels these programs as “means-tested welfare programs,” the list is far broader than what is usually considered welfare, covering food, housing, health, education, training, child care, social services, refundable tax credits, and community development programs, as well as income support programs. It includes Pell Grants, Head Start, the EITC, and SNAP (food stamps). It also includes Medicaid and the refundable premiums and out of pocket subsidies under the health care bill – meaning that the 2014 expansions could not take place unless other programs were correspondingly cut.

Although the cap would not take effect until the national unemployment rate falls below 6.5 percent in a month, there is no provision for spending to increase at more than the rate of inflation during any future recession.

The cap would be enforced by assigning allocations to each of the appropriations committees and committees with jurisdiction over mandatory programs, and by making any bill or amendment that exceeded the caps subject to a point of order. If mandatory programs exceeded the cap, legislation to reduce spending could be passed under budget reconciliation rules, meaning that a simple majority could pass it.

SNAP (Food Stamp) Provisions

The most significant of these are:

• The Recovery Act increase in SNAP benefits is repealed upon enactment, resulting in a significant benefit cut. • Children would no longer be eligible for SNAP unless they live with a parent who is eligible for SNAP – this would deny benefits to citizen children and effectively apply the five year waiting period to children. • States get credit for reducing their caseloads below their 2006 level (but not the number in poverty that are eligible), so there are financial incentives for keeping eligible people, including seniors, people with disabilities and workers, off the program • The bill revamps work requirements and employment and training with some new very punitive sanctions and includes ideas like making unmarried couples have a higher work requirement than married couples • Aid wound not be paid pending an appeal of an administrative action. • The bill repeals the name SNAP and goes back to food stamps.

TANF Provisions

The bill would cut TANF block grants by $1 billion a year, starting in FY 2011 (which is already half over). It would also remove a provision from the Recovery Act which allowed states to serve more families without risking work participation penalties.

Abortion Provisions

The bill contains restrictions on funding of abortions, including through tax benefits, similar to those in H.R. 3.

Self-Sufficiency Grants

The bill authorizes $300 million per year to provide grants to up to three states with the greatest increases in the “self-sufficiency ratio” compared to 2007. This is measured as the share of families headed by able bodied individuals under age 63 that have incomes above poverty, not taking into account means-tested benefits.