Welfare Reform
Over the last several years, Rhode Island, like many other states across the country, has been focusing on implementing sweeping reforms to the state’s welfare system enabling people to move toward employment, self-sufficiency and independence.
On August 8, 1996, following nearly a unanimous passage by the Rhode Island General Assembly, the Family Independence Act (FIA), Rhode Island’s comprehensive reformation of the old Aid to Families with Dependent Children (AFDC) program, was enacted by Governor Lincoln Almond. The FIA became the basis of Rhode Island’s new welfare program and was approved by the U.S. Department of Health and Human Services as meeting the federal welfare reform requirements of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Title I, Temporary Assistance for Needy Families (TANF).
Passage of the FIA was the culmination of nearly a year and a half of public debate including an extensive community input process which involved local community, advocates, businesses, and media groups as well as welfare beneficiaries. More than 900 individuals participated in the public meetings and more than 175 came forward to state their concerns.
The Family Independence Act is based on the principle that children who receive assistance should never be worse off than they were before reform. The Family Independence Program (FIP), implemented according to law under the new FIA on May 1, 1997, has several components which help to differentiate it from the old program including:
- A five-year time limit on cash assistance for adults. Children may continue to receive benefits.
- Work requirements with work supports as follows:
- Preparation for workforce
- Child care assistance without time limits
- Health care coverage without time limits
- Earned income disregards, which allow
families to make a longer, more gradual
transition to full employment and off cash
assistance.- Provisions extending health insurance and child care
to all working families in certain income brackets.- Opportunities for education and training for cash
beneficiaries to prepare for work, if needed.- Job development, placement and retention services for
job-ready or employed participants.
A more detailed, comparison of selected provisions of the new program and the old program can be found below. Please note that this is just a sampling of some of the program changes and that not all changes have been highlighted in this section.
For more information about the Family Independence Program (FIP) call
401-462-5300 & TTY/Hearing Impaired 401-462-3363.
New Family Independence Program
Place greater emphasis on comprehensive assessment of family needs, facilitation of earned income from work and the entry of adult family members (of both one- and two-parent families) into the workplace by:
- Helping to prepare them for work and by providing them with the necessary work supports including health care and child care subsidies to enable them to find and maintain employment.
- Encouraging work for new applicants by requiring the development of an employment plan that includes training, education, and case management components.
- Requiring work of the applicant 24 months after the employment plan has been put in place.
Old AFDC Program
Provided cash assistance to mainly single parent families. Facilitated entry of a limited number of adults into the workplace by providing training, education and case management through the "Pathways to Independence/Jobs Program."
New Family Independence Program
The cash benefit level remains the same as defined in the old program except for two changes:
- A $50 monthly reduction for families receiving subsidized housing assistance.
- Beginning with the fourth family member, the increment for each additional family member is set at $80.
Old AFDC Program
Monthly benefits by typical family size were as follows:
- Family of two = $449
- Family of three = $554
- Family of four = $632
New Family Independence Program
To increase and simplify financial incentives for work, beneficiaries are allowed to retain the first $170 of earnings per month without a reduction in their cash benefits. After the first $170 in earnings, the cash benefit is reduced $1 for every $2 earned. The earned income of any dependent child is excluded. Monthly reporting of earned income has been eliminated. Working beneficiaries must report earnings every 6 months and are required to report changes in earned income of $80 or more per month.
Old AFDC Program
Working cash beneficiaries were allowed to retain the first $90 of earnings per month plus $30 and 1/3 of earnings over $90. This formula applied for the first four consecutive months of employment. For the next eight consecutive months up to $120 was retained before there was a reduction of benefits. Under this old program, it was less financially advantageous for beneficiaries to hold employment as they were penalized for their earnings over $90. Monthly reporting was required by all working beneficiaries.
New Family Independence Program
There is now a five-year, lifetime limit on the receipt of cash benefits for adult members receiving benefits.
Old AFDC Program
Cash assistance was considered an entitlement and there was no time limit on the receipt of cash benefits.
New Family Independence Program
New applicants who are not exempt from this requirement (e.g. all able-bodied beneficiaries) will begin working and/or participating in a work readiness program on a regular basis. DHS, working directly with the client, will develop an Individual Employment Plan for all FIP beneficiaries that sets forth skills development and supports necessary for the applicant to gain employment. Twenty-four months after the employment plan has been signed, recipients must work at least twenty hours a week, either paid or unpaid, in order to continue to receive benefits. Education and training opportunities are available to all FIP beneficiaries in the first twenty-four months of their employment plan.
Old AFDC Program
Cash beneficiaries who were not exempt were required to participate in the "Pathways to Independence" program. This program was designed to prepare beneficiaries to enter the workforce and provide the child care and transportation supports needed to participate in such preparation. "Pathways" was only funded to serve approximately 20% of the caseload and was not a full caseload work or work preparation requirement like the new Family Independence Program. Many AFDC recipients were not able to access education and training programs which would help prepare them for work.
New Family Independence Program
During the first 24 months of the employment plan recipients are required to fulfill their work requirement by participating in one of the following:
- 20 hours per week of paid employment (including on-the-job training and subsidized employment)
- 20 hours per week of community work experience
- Training or work readiness program conducted on the job site and approved by DHS.
- During the first six months of eligibility, or longer if necessary, participation in an approved rapid job placement program.
- Supervised individual job search.
- Parents under the age of 20 without a secondary credential may participate full time in a program to obtain such a diploma or its equivalent.
- Parents age 20 or older:
- literacy or English as a second language classes if needed
- job skills training and/or vocational education
- post secondary education, which is likely to result in a job with sufficient wages to close to cash assistance.
Old AFDC Program
Cash assistance participants who were not exempt may have participated in the following to fulfill their work requirement:
- Any educational activity below the post-secondary level appropriate to the participant’s employment goal
- Post secondary education
- Paid employment
- Job skills training
- Job readiness activities
- Job development and job placement activity
- Job search
- Work supplementation
- On-the-job training
- Community work experience
- Alternative work experience
Non-Compliance with Work Requirements
New Family Independence Program
If a beneficiary does not comply with work requirements, as defined in their individual employment plans, in the first two years of benefit receipt, the family grant will be reduced by the parent’s portion of the benefit. After 24 months, the reduction for non-compliance is as follows:
Number of Months Reduction in Family Benefit
Of Noncompliance (% of Parent’s Benefit)
1-6 110%
7-12 120%
13-18 130%
19-24 140%
Eventually the payment is removed from the control of the noncompliant parent and is paid to another responsible adult.
Old AFDC Program
First incidence of noncompliance of those participating in the "Pathways to Independence" program resulted in the removal of the individual from the payment until compliance; second incidence resulted in removal of the individual from the payment for a minimum of 3 months; and the third incidence resulted in removal for a minimum of 6 months. Again, "Pathways" was only funded to serve approximately 20% of the caseload and was not a full caseload work requirement like the new Family Independence Program. Most AFDC recipients were not able to access education and training programs which would help prepare them for work and therefore did not need to be concerned with penalties for not complying with work requirements.
New Family Independence Program
There is entitlement to child care subsidies for working families up to 225% of poverty. Meaning all working families, FIP or otherwise, earning up to approximately a gross yearly income of $31,230 for a family of 3, are guaranteed child care subsidies to help pay child care costs. In July 2000, eligibility levels will increase again to 250% of poverty.
Old AFDC Program
Limited child care subsidies were available to families receiving cash assistance if they were in training or education and to working families who had an income at or below 185% of poverty in order to work. Under this old program, child care subsidies were not an "entitlement" and waiting lists for subsidies were at times instituted.
Eligibility for Health Care Coverage
New Family Independence Program
Each member of a family eligible for cash assistance is categorically eligible for health care coverage through RIte Care. All children up to the age of 19, regardless of citizenship or alien status, with family incomes up to 250% of the federal poverty level are eligible for coverage through RIte Care, the state’s managed health insurance program. Families leaving assistance to go to work may continue to receive health care coverage if their income is less than 185% of the federal poverty level.
(Note: This coverage is also available to parents in working families who have not been on cash assistance.)
Old AFDC Program
Eligibility for AFDC automatically entitles recipients to health care coverage. All families receiving cash assistance, pregnant women and children to age 8, who were within the income guideline, were eligible to participate in the RIte Care managed health care program. Families leaving assistance to go to work were able to receive up to 12 months of transitional health care coverage.
New Family Independence Program
Minor parents will be required to live at home with their parents, with a relative or a legal guardian, in order to be eligible for cash assistance. Unless otherwise authorized, the cash payment will be provided to the parent, relative, or the legal guardian on behalf of
the minor parent. When there is good cause for a minor parent to live outside of their parent’s home and there is no suitable relative or legal guardian, the minor parent must live in a supervised supportive living arrangement approved and monitored by the DHS Adolescent Self Sufficiency Collaboratives. In addition, the minor parents must participate in secondary education as part of their "service" plan.
Old AFDC Program
Minor parents not living with their parents could qualify for full cash assistance as head of the household without any adult supervision. They were required to attend school, or GED, or training and participate in an Adolescent Pregnancy and Parenting Program.
New Family Independence Program
Two parent families are eligible for benefits if they meet income and resource eligibility requirements. The characteristics of unemployment or incapacity are no longer required. In order to continue to receive cash benefits, one or both parents must be working. If the family utilizes a child care subsidy, both parents must work a total of 55 hours per week (per 1997 FIA amendments). One parent must work no less than 35 hours per week. This provision supports two parent families and the family unit by removing financial penalties previously associated with more than one adult parent residing in the same residence.
Old AFDC Program
One parent was required to be unemployed or incapacitated to receive cash assistance.
Family Resources for Cash Assistance
New Family Independence program
Applicants for cash assistance may have up to $1000 in resources. Excludes from resources any vehicle valued up to $4650 or $1500 equity in the vehicle, whichever is lower.
Old AFDC Program
Beneficiaries were allowed to have $1000 in resources and $1500 of equity value in a vehicle and be eligible for cash assistance.
