States Provide a Wide Range of Supports to Low-Income Families although Extent of Receipt Varies

States draw on a mixture of federal and state funds to provide low-income  families with a wide range of supports, although the specific types of  supports offered and the extent to which eligible families are able to  receive the supports they seek vary by state and sometimes within states. For example, most states subsidized several types of  child care, subsidized individuals’ public transportation costs, and offered  employment services in at least one location in the state, but somewhat  fewer states subsidized child care for sick children, assisted with the  purchase of used cars, or offered employment retention bonuses to  parents who found and kept jobs. However, as the  emphasis of support programs has shifted toward promoting employment  and economic self-sufficiency for a broader population, states have  targeted some supports to low-income families who are not receiving cash  assistance. Officials reported  that they structured the eligibility criteria and benefits of many supports in  ways that allow them to serve families with different levels of income and  employment. In the five states we visited, the  average benefit amount provided to support recipients varied by state and  support, as shown in figure 3. Many States Have Expanded Supports in Recent Years, but Express Uncertainty about the Future

Over the last several years, states have made substantial changes in their  supports for low-income families, with most of these changes expanding  the provision and receipt of supports, but state officials expressed  uncertainty about their continued ability to provide the current level of  support. States made  significant changes to the structure of their welfare programs in order to  focus their new TANF cash assistance programs on the goals of  employment and economic independence. Further,  as states plan for the future of supports in the current fiscal environment,  officials reported that they are considering changes that would likely limit  the availability and provision of supports for low-income families. States can expand or limit the availability of supports by increasing or  decreasing the number of benefits and services available or the types of  services provided. Concluding Observations

Overall, supports for low-income families have undergone many changes  over the past several years, and they will likely continue to evolve as  federal and state governments further develop policies and respond to  cyclical fiscal conditions and changes in the demand for services. HHS agreed  with the findings and conclusions of the report. Survey of State Social Services Directors

To obtain information on the extent to which states provide supports for  low-income families and how this has changed in the last few years, we  conducted a survey of support programs in each state and the District of  Columbia. State Site Visits

To obtain information about each assignment objective and, in particular,  to gain a deeper understanding of how selected states have structured  programs to support low-income families, we interviewed state officials in  New York, North Carolina, Oklahoma, Washington, and Wisconsin. Review of Federal Reports

To obtain information about policies, participation rates, and other  characteristics of the support programs that are administered largely at  the federal level, such as food stamps, rental housing assistance, and the  federal EITC, we reviewed reports and information readily available from  prior GAO work and relevant federal agencies.
Why GAO Did This Study

Over the last decade, the Congress has made significant changes in numerous federal programs that support low-income families, including changes that have shifted program emphases from providing cash assistance to providing services that promote employment and economic independence. As a result of some of the federal policy changes, the support system is more decentralized than before. This heightens the importance of understanding policy choices and practices at the state and local levels as well as those at the federal level. To provide the Congress with information on this system, GAO agreed to address the following questions: (1) To what extent do states provide supports for lowincome families? (2) How have states structured programs to support low-income families? (3) What changes have states made to supports for low-income families in recent years? Our review focused primarily on supports for which states make many of the key decisions about eligibility, benefit amounts, and service provision. To obtain this information, GAO conducted a mail survey of the social service directors in the 50 states and the District of Columbia; conducted site visits in New York, North Carolina, Oklahoma, Washington, and Wisconsin; and reviewed federal reports and other relevant literature.

What GAO Found

States use an array of federal and state funds to provide a wide range of benefits and services that can support the work efforts of low-income families, although the types of supports and coverage of the eligible population vary among the states and sometimes within states. For instance, most states subsidize several types of child care, subsidize use of public transportation, and offer employment services in at least one location in the state, but somewhat fewer states subsidize child care for sick children, assist with the purchase of used cars, or offer employment retention bonuses to parents who find and maintain jobs. The five states we visited structured the eligibility criteria and benefits of many supports in ways that allow them to serve a broad range of low-income families, including families on and off welfare and families who are working and those who are not currently working. The specific support structures vary, however, by state and type of support. These differences create a complex national picture of supports that provide an assortment of benefits and services to a range of populations. Over the last several years, many states have expanded the availability of supports that promote employment and economic independence for lowincome families. State officials reported that both the number of support services available and the number of recipients have increased. However, state officials express uncertainty about their continued ability to provide this level of support. As states plan for the future of supports in the current state fiscal environment, officials reported that they are considering changes that could limit the availability and provision of supports for low-income families. Overall, it its probable that the support system will continue to change as the federal and state governments further amend policies and respond to changes in the demand for services and cyclical fiscal conditions.