Rosalind Evans
In the midst of debt ceiling negotiations, work requirements for safety net programs have emerged as a crucial issue. President Joe Biden’s previous endorsement of such mandates has sparked optimism among Republicans and concern among his fellow Democrats.
Biden met with House Speaker Kevin McCarthy and other top congressional leaders to address the borrowing cap and prevent a global economic catastrophe. While negotiators have identified potential areas of compromise, such as revising the permitting process, rescinding unspent Covid-19 relief funds, and potential spending cuts, work requirements have become a contentious topic. McCarthy insisted that work requirements be included in the deal, while House Democratic Leader Hakeem Jeffries opposed new work requirements in government benefits programs.
On Sunday, Biden expressed openness to including work requirements in the package, awaiting the detailed proposals from Republicans. However, he and the White House later clarified that he would not support mandates that jeopardize people’s healthcare under Medicaid or put older adults at risk of losing food stamps and going hungry.
During remarks on the debt ceiling, Biden stated that there might be a few provisions related to work requirements in the deal but nothing of significant consequence. He emphasized that he would not accept work requirements that exceed what already exists, referencing his past vote in favour of work requirements.
Biden’s support for work requirements can be traced back to his role as one of the 78 senators from both parties who voted for the 1996 welfare reform package signed into law by then-President Bill Clinton, a Democrat. This legislation replaced the nation’s primary welfare program with Temporary Assistance for Needy Families (TANF), which mandated that states ensure a certain percentage of cash aid recipients engage in work-related activities.
TANF’s mandate applies to a broader group of recipients; only specific activities fulfill the requirement. States can lower their required workforce participation rate by reducing the number of cases. In 2021, approximately 540,000 families receiving cash assistance from TANF were subject to work requirements, including around 975,000 children.
The welfare reform law also implemented a time limit for certain non-working adults in the Supplemental Nutrition Assistance Program (SNAP), known as food stamps. Able-bodied adults without dependents, aged 18 to 49, can only receive food stamps for three months out of every three years unless they work or participate in other activities for at least 20 hours per week.
Supporters of work requirements, both in the past and present, argue that such mandates are necessary to break the cycle of dependency on government assistance. McCarthy, for instance, emphasized the importance of assistance programs being temporary rather than permanent, providing a hand up rather than a handout, and serving as a bridge to independence.
However, Elizabeth Lower-Basch, the deputy executive director of policy at the Center for Law and Social Policy, an anti-poverty group, pointed out that in 1996 there was less research and evidence demonstrating the ineffectiveness of work requirements. She highlighted that it was a different era and that there was a genuine belief at the time that reform would benefit families. LaDonna Pavetti, a senior fellow at the Center on Budget and Policy Priorities, added that the current understanding is that work requirements do not necessarily lead to better jobs.
The ongoing negotiations concerning work requirements remain largely undisclosed. However, the debt ceiling bill passed by House Republicans last month outlined the changes they seek. The proposed package would expand the number of non-working adults subject to the time limit on food stamps, increasing the upper age limit from 49 to 55.
According to the Congressional Budget Office, approximately 275,000 people, on average, would lose benefits each month for failing to meet the requirement and not qualifying for exemptions. Another 19,000 people would receive reduced benefits due to increased income.
Additionally, the GOP bill aims to introduce a federal work requirement to Medicaid, necessitating specific adult recipients aged 19 to 55 to work, engage in community service, or participate in an employment program for at least 80 hours per month. Exemptions would apply to pregnant individuals, parents of dependent children, those physically or mentally unfit for employment, and individuals enrolled in education or substance abuse programs. This provision primarily affects low-income adults who qualify under Medicaid expansion, a provision of the Affordable Care Act.
According to the CBO, the Medicaid work requirement would result in an average of 1.5 million adults losing federal funding for their Medicaid coverage. However, approximately 900,000 individuals would have their coverage costs covered by states, leaving around 600,000 uninsureds.
Furthermore, the package proposes changes to the work requirements in the TANF program, effectively increasing the percentage of parents who must engage in work activities, as explained by Pavetti.
If implemented, the proposal could lead states to redirect TANF funds from cash assistance to child care, refundable tax credits, or other programs that support children, according to Lower-Basch.
The debate over work requirements in public aid programs has become a central point of contention in the debt ceiling negotiations. President Biden’s past support for such mandates has created divisions within both political parties, with Republicans seeing it as a reason for optimism and Democrats expressing concern. As the negotiations continue, the outcome regarding work requirements remains uncertain, but the discussions reflect the ongoing dialogue surrounding the role of work and assistance in breaking the cycle of dependence and promoting self-sufficiency.
