A Changing Economy

AP US History· difficulty 3/5

"Today we are taking an historic chance to make welfare what it was meant to be—a second chance, not a way of life… A long time ago I concluded that the current welfare system undermines the basic values of work, responsibility, and family." — President Bill Clinton, signing PRWORA, August 22, 1996

Welfare Caseload (millions) 1994 2000 14.2 5.8

PRWORA replaced which longstanding New Deal-era entitlement?

  • A

    The Earned Income Tax Credit

  • B

    Unemployment Insurance

  • C

    Aid to Families with Dependent Children (AFDC)

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  • D

    Old-Age Insurance under the Social Security Act

Explanation

The 1996 law converted AFDC, in place since 1935, into the Temporary Assistance for Needy Families (TANF) block grant with work requirements and time limits.

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