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Lawmakers confront welfare reform failures and fraud

September 24, 2024 | Ways and Means: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal


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Lawmakers confront welfare reform failures and fraud
During a recent government meeting, Representative Gwen Moore of Wisconsin expressed her concerns regarding the long-term effects of welfare reform initiated in 1996. Moore, who was a state senator at the time, criticized the flexibility granted to states under the reform, describing it as having devolved into a \"slush fund\" that allowed for misuse and abuse of welfare resources.

Moore recounted her experiences and proposed amendments aimed at addressing issues within the welfare system, highlighting the role of \"diversion specialists\" who discouraged individuals from seeking welfare assistance. She expressed her frustration over the ongoing fraud and waste within the program, stating, \"Here we are, what, 28 years later discovering the fraud, and waste, and abuse in this program.\"

The discussion also included testimony from various witnesses, including Mr. Adelson, who presented data on the impact of the 1996 reforms. While he noted a significant reduction in dependency on cash assistance and an increase in workforce participation among single mothers, Moore challenged the accuracy of these claims. She pointed out discrepancies in the data, particularly regarding poverty levels and the benefits received by those in need.

Moore emphasized the need for reform, aligning herself with the proposed legislation by Ms. Chew and Dr. Davis aimed at addressing these systemic issues. She concluded her remarks by calling for a reevaluation of the welfare system to ensure that it effectively supports those living in deep poverty, particularly in states like Mississippi, where assistance remains critically low.

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