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Cost Sharing Under Complex Federalism: Welfare Reform Cost Neutrality Calculations, Robert G. Lovell

Dissertations

The American system of welfare for families with children is a partnership between the federal and state governments. Under this partnership, the federal government establishes the basic eligibility policies for the Aid to Families with Dependent Children (AFDC) program, the principal program providing cash assistance to poor families. States determine payment levels and administrative policies. Costs are shared through a formula reflecting each state’s ability to pay.

To encourage policy experimentation by the states, a section of the act creating the AFDC program allows the Secretary of the Department of Health and Human Services to waive some provisions. This became …