July 31, 1996

THE CONFERENCE ON THE WELFARE BILL

On Friday, July 26, the White House circulated a list of 11 key welfare conference priorities. The priorities called for:

The outcome is disappointing.

The bottom line is that: 1) only four of the Administration's 11 priority items have been agreed to in whole or in large part; and 2) while the conference came out between the House and Senate version, it appears closer to the House than the Senate in the key policy areas.


The Four Priority Senate Provisions

As noted, the conference adopts the Senate approach in two of these four areas. The conference drops the optional food stamp block grant. It also includes the Senate provision on the funding mechanism for certain child welfare services.

But the conference departs from the Senate position in the other two areas.

In the fifth area, the Administration's priority list called for maintaining a provision in both the House and Senate bills to prevent women and children from losing Medicaid when a state converts AFDC to a block grant. This provision has been rewritten but essentially maintained. As of 4:00 pm, the new language has been sent to Governor Engler and is awaiting his approval.


The Two Extreme House Provisions

Two weeks ago, the House added an additional $5.8 billion in legal immigrant cuts in the Medicaid program. These added cuts, which were not in the vetoed bill, were dropped in conference. But the legal immigrant cuts in conference remain $1 billion deeper than those in the vetoed bill.

In the food stamp area, the House added a draconian provision far more extreme than an already-harsh provision in the vetoed welfare bill that would restrict food stamps for unemployed workers not raising children.


Improvements Not Made

The Administration sought improvements beyond the Senate and House bills in four key areas. None of these improvements have been made.


Other Important Senate Provisions Rejected By The Conference