Welfare Reform: Competitive Grants in the Welfare-to-Work Grant Program

Publication Date: November 2001

Publisher: Library of Congress. Congressional Research Service

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Research Area: Social conditions

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Abstract:

The Balanced Budget Act of 1997 (P.L. 105-33) made funding available for a welfare-to-work program to assist "hard-to-serve" welfare recipients with the transition to work. In addition to formula grants awarded to the states, the Department of Labor awarded 191 competitive grants totaling $712 million directly to local workforce investment boards, city and county governments, and private or non-profit entities in FY1998 and FY1999. The Consolidated Appropriations Act of 2001 (P.L. 106-554) gave grantees an additional 2 years from the date of award to expend welfare-to-work funds, allowing available welfare-to-work expenditures (which would otherwise expire in FY2002) to continue through FY2004. The most common work activities planned by the competitive grant awardees have been skills training and job placement assistance. Title VIII of the Consolidated Appropriations Act of FY2000 (P.L. 106-113) contained amendments to the welfare-to-work program, but did not provide for additional welfareto-work funding in FY2000. These amendments modified eligibility and expanded the allowable welfare-to-work activities effective January 1, 2000 for competitive grantees. This report will be updated to reflect any program developments.