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Supports for Working Poor Families: A New Approach

December 2001

Annie E. Casey Foundation

With welfare reform, millions of families with children have shifted from reliance on cash assistance from Aid to Families with Dependent Children (AFDC) to reliance on earnings. Increases in programs providing support to low-wage workers and their families have facilitated this shift from welfare to work. Key work support programs include the Earned Income Tax Credit, food stamps, medical insurance under the State Children's Health Insurance Program and Medicaid, and subsidized childcare. By "making work pay," these work support programs have helped families move from welfare to work and have improved family well-being. This paper presents innovative policy options for improving access to the Food Stamp Program (FSP). It presents background on the current programs and the rationale for why a new approach is needed; suggests principles to serve as a guide in designing a new approach; presents options for making the benefits available under the FSP readily accessible to eligible working families; and discusses where to go from here and lays out first steps.
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