ABSTRACT
The primary purpose of the aid to families with dependent children (AFDC) program is to support needy children in single-parent households. The two-parent program is a relatively minor part of the AFDC program, accounting for less than 6 percent of the AFDC households in fiscal year 1981. AFDC program costs are shared by federal, state, and local governments. A household that has dependent children and is otherwise eligible can receive aid if its "countable" monthly income falls below the state's need standard. The reconciliation act sought to control federal spending on AFDC not only by reducing federal requirements but also by limiting state discretion. The reconciliation act contained three provisions that allow states to permit or require AFDC participants to work in exchange for benefits. The reconciliation act also placed categorical restrictions on AFDC eligibility. The fiscal year 1983 Reagan budget included additional cuts in the AFDC program for fiscal year 1982.
