Welfare Time Limits: An Update on State Policies, Implementation, and Effects on Families
April 2008
DHHS, Administration for Children and Families
One of the most controversial features of the 1990s welfare reforms was the imposition of time limits on benefit receipt. The law prohibits states from using federal TANF funds to assist most families for more than 60 months. Under contract to the Administration for Children and Families (ACF) in the U.S. Department of Health and Human Services, Lewin and MDRC conducted a comprehensive review of what has been learned about time limits. The review, which updates a 2002 study, includes analysis of administrative data reported by states to ACF, visits to several states, and a literature review. Key findings include the following: time-limit policies vary dramatically from state to state; nationally, at least a quarter million TANF cases have been closed due to reaching a time limit since 1996, although about one-third of these closures have occurred in New York, which continues to provide assistance through a state and locally funded program; and many of the families whose TANF cases were closed due to time limits are struggling financially and report being worse off than they were while on welfare.