Personal Responsibility and Work Opportunity Act Ends Welfare Entitlement

President Bill Clinton signs the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), fulfilling his 1992 campaign promise to “end welfare as we know it.” The legislation represents the most significant overhaul of the American welfare system since the New Deal, replacing the 61-year-old Aid to Families with Dependent Children (AFDC) program with Temporary Assistance for Needy Families (TANF), which places strict time limits on welfare assistance and implements work requirements.

Clinton found the Republican-drafted legislation more conservative than he preferred, but signed it after vetoing two earlier welfare proposals, viewing a third veto as a political risk during a campaign season with welfare reform as a central theme. The law imposes a five-year lifetime limit on benefits, requires recipients to work after two years of assistance, and grants states greater latitude in administering social welfare programs while implementing maintenance of effort requirements.

After passage, the number of individuals receiving federal welfare dramatically declined. The portion of employed single mothers grew from 58 percent in 1993 to 75 percent by 2000, while employment among never-married mothers increased from 44 percent to 66 percent. However, critics argue the legislation devastated the poorest families, particularly during economic downturns, by eliminating the safety net for those unable to find employment. The reform fundamentally shifted welfare from an entitlement program to a temporary, work-based assistance system, prioritizing labor force participation over poverty reduction.