March 21, 2010 | WebMemo on Welfare and Welfare Spending
On March 16, 1964, President Lyndon Johnson declared war on poverty in the
It is clear that President Obama is intent on not only continuing the failed war on poverty but expanding and growing the size of the welfare state. President Obama’s 2011 budget will increase spending on welfare programs by 42 percent over President Bush’s last year in office. Total spending on the welfare state (including state spending) will rise to $953 billion in 2011.
Further, the Obama Administration is pursuing a change in the official “poverty measure” that will increase the number of people considered poor in
What Is Means-Tested Spending?
Means-tested welfare spending or aid to the poor consists of government programs that provide assistance deliberately and exclusively to poor and lower-income people—for example, food stamps, public housing, Medicaid, and Temporary Assistance for Needy Families. There are currently over 70 different federal means-tested programs on the books.
In fiscal year (FY) 2008, total government spending on means-tested welfare or aid to the poor amounted to $714 billion. Of that, $522 billion (73 percent) was federal expenditures and $192 billion (27 percent) was state government funds. Nearly all state welfare expenditures are matching contributions that the federal government requires of its welfare programs, a “welfare tax” that the federal government imposes on the states. Total means-tested welfare spending in FY 2008 amounted to around $16,800 for each poor person in the
What Is the Poverty Rate?
Each year, the U.S. Census Bureau calculates what the national poverty rate is and how many people are living in poverty. For 2008, the poverty rate was about $22,000 for a family of four. There were approximately 39 million people considered living at or below the poverty rate.
Means-tested programs are limited to those at or below the poverty line. However, many welfare benefits go beyond this threshold to include persons who have incomes below 200 percent the poverty level, or about $44,000 per year for a family of four. Close to one-third of the
The Obama Blueprint to Spend More and Expand the Welfare State
Of the 70 different means-tested programs run by the federal government, almost all of them have received generous increases in their funding since President Obama took office. Some have also been expanded to include more people who would be eligible for the benefits. A good example of this is food stamps, officially known as Supplemental Nutrition Assistance.
The President’s 2011 budget requests that food stamps spending rise from $39 billion (already a record level) to $75 billion. Obama’s 2011 budget also requests these expansions be made permanent. In addition, eligibility for this program was expanded in the infamous “stimulus” package. Within President Obama’s first year in office, food stamp rolls grew by over 5 million people—the single largest increase in a one-year period in over three decades.
Obama’s New and Expansive Poverty Measure
The Obama Administration announced that it is creating a new poverty measure to be unveiled in the fall of 2011 that would redefine who is considered “poor” in
Continuing the Failed War on Poverty
Unfortunately, only one of the 70 federal welfare programs, the Temporary Assistance to Needy Families program, has work requirements for its recipients. The 69 others merely provide a basic need and allow families to stay on the welfare rolls indefinitely.
Congress should ask pointed questions about why the war on poverty continues to escalate more than four decades after it began. The Obama Administration’s expansion of the welfare state, in combination with its effort to define poverty up, does not bode well for economic freedom in the
Katherine Bradley is Visiting Fellow in the Richard and Helen DeVos Center for Religion and Civil Society and Robert Rector is Senior Research Fellow in the Domestic Policy Studies Department at The Heritage Foundation.
 U.S. Department of Commerce, Census Bureau, “Current Population Survey 2009,” at http://www.census.gov/hhes/www/cpstables/032009/pov/toc.htm (March 20, 2010).
U.S. Office of Management and Budget, Budget of the United States Government, Fiscal Year 2011 (
 Press release, “Census Bureau to Develop Supplemental Poverty Measure,” U.S. Department of Commerce, Census Bureau, March 2, 2010, at http://www.commerce.gov/NewRoom/PressReleases_FactSheets/PROD01_008963 (March 20, 2010).
Sam Roberts, “Calculating Poverty in