The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) is a United States federal law considered to be a fundamental shift in both the method and goal of federal cash assistance to the poor. The bill added a workforce development component to welfare legislation, encouraging employment among the poor. The bill was a cornerstone of the Republican Contract with America and was introduced by Rep. E. Clay Shaw, Jr. (R-FL-22).
Bill Clinton signed PRWORA into law on August 22, 1996, fulfilling his 1992 campaign promise to “end welfare as we have come to know it”.
PRWORA instituted Temporary Assistance for Needy Families (TANF), which became effective July 1, 1997. TANF replaced the Aid to Families with Dependent Children (AFDC) program—which had been in effect since 1935—and supplanted the Job Opportunities and Basic Skills Training program (JOBS) of 1988.
The law was heralded as a “reassertion of America’s work ethic” by the U.S. Chamber of Commerce, largely in response to the bill’s workfare component. TANF was reauthorized in the Deficit Reduction Act of 2005.
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