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Welfare: What It Is and Who Qualifies

Welfare

Investopedia / Michela Buttignol

Definition

Federally funded assistance programs hel𓄧p individuals and families with housing, food, and healthcare costs.

What Is Welfare?

Welfare is a common label attached to a range of goverꦰnment programs that assist individuals and families whose income falls below the poverty line. The programs provide health care, food subsidies, housing assistance, and child care assistance to those i♛n need.

The benefits vary by state. Most are funded by the federal government, which distributes money to the s൩tates through a program called T𒐪emporary Assistance for Needy Families (TARF).

Key Takeaways

  • Welfare refers to federal government-sponsored assistance programs for individuals and families in need.
  • The federal government grants money to each state through the Temporary Assistance for Needy Families (TANF) program.
  • Eligibility for benefits is based on income levels and family size.
  • Beneficiaries receive monthly SNAP food subsidies as direct payments to an EBT card.

Who Qualifies

Benefits vary by state, with eligibility based on the person’s financial status, family size, income, or an assessed disability. A caseworker may be assigned to determine and confirm the applicant's needs.

Qualification is based on the poverty line for each state and allows for adjustments based on the local cost of living. The government requires that individuals or families seeking assistance prove that their annual income falls below the federal poverty level (FPL).

As of 2025, the federal government has established the minimum poverty level at below $21,150 for a family of two, with higher rates up to four times that amount for some states.

Subsidized programs are only available to U.S. citizens and permanent residents. Federal law bans states from using grants to assist most legal immigrants unless they've resided in the country for five years or more. A valid 澳洲幸运5官方开奖结果体彩网:Social Security Number (SSN) is required to obtain benefits. Individuals applying for welfare must meet their states' requirements as well as rules imposed by the federal government.

$15,650

The 2025 poverty level for an individual living alone. A family of four with an income below $32,150 would qualify for benefits.

History of Welfare

The history of welfare programs in the United States is complex and controversial. In the 1960s, President Lyndon Johnson created anti-poverty programs including Head Start, food stamps, and Medicare. 🍰These programs were designed ꦆto fight what he called "the war on poverty" in America.

Former President Richard Nixon revised the program in 1969 with the Family Assistance Plan in 1969, which imposed work requirements and work incentives for beneficiaries.

In the 1980s, President Ronald Reagan cut welfare budget programs designed to help families and created "welfare to work" programs in 40 states.

Further legislation under President Bill Clinton in 1996 focused on limiting the length of time that people could receive benefits.

Then-President Joe Biden brought back no-strings-attached assistance to families with children in 2021, but only as a temporary measure while the COVID-19 pandemic was raging. Eligibility extended to families with incomes well above the poverty line but was phased out at higher levels.

Current Status of Welfare

The U.S. government currently assists people living below the poverty line mainly through a program known as Temporary Assistance to Needy Families (TA💟NF).

The program mandates that all recipients find employment within two years 🐼or risk losing their benefits.

As of 2025, the federal government was expected to funnel about $16.7 billion to the states to pay for TANF assistance to their residents.

Types of Programs

In addition t꧙o TANF, the🌺 government has several programs that subsidize costs for low-income Americans. Income eligibility levels vary by program.

Important

According to the Pew Research Center, 41.9 million people in 22.2 million households benefited from SNAP vouchers in April 2023.

What Is Considered Welfare?

Welfare🎉 is a term that dates from the 1960s for government-funded assistance to low-income Americans, in the form of weekly direct payments that could be used for any purpose. The word welfare has been largely banished from government documents.

Today, a number of fe♊deral programs provide subsidies for housing, food, and healthcare to individuals and families whose income falls below the💯 federal-established poverty line.

The term welfare was particularly associated with long-term payments with no strings attached to unemployed people. Since 1996, eligibility for such payments is mostly limited to two years or less for able-bodied recipients.

What Is the Difference Between Welfare and Entitlements?

Entitlements are federall🌄y funded pr💖ograms that benefit Americans who qualify for them. These are not tied to income but to age, work history, and contributions from payroll deductions during their working years.

Entitlements include Social Security benefits for retirees and Medicare coverage for the elderl𓂃y, which are partially funded by the recipients through payroll deductions.

The term welfare is now rarely used. It became a loaded term in politics as early as the 1960s and was often characterized as free money for the underdeserving.

What Welfare Programs Does the United States Provide?

U.S. programs that might be termed welfare include Medicaid, Supplemental Security Income, Supplemental Nutrition Assistance Program, the Children's Health Insurance Program, Temporary Assistance for Needy Families, housing assistance, and the Earned Income Tax Credit.

All are programs available only to people and families whose inco🐼me falls below certain levels.

The Bottom Line

The term welfare is not often used in recent years. The welfare system of the mid-20th century has been largely replaced by programs that target the essential needs of low-income individuals and families. F൲ood, medical services, and rent subsidies are available to those who qualify. Taxpayers fund these programs from which r🅷ecipients often receive biweekly or monthly payments in the form of vouchers or direct payments.

Article Sources
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  2. U.S. Department of Agriculture. "."

  3. Emergency Housing Voucher Program. "."

  4. USA.gov. "."

  5. American Council on Aging. "."

  6. National Immigration Law Center. "."

  7. Social Security Administration. "."

  8. U.S. Department of Health and Human Services-Office of Head Start. "."

  9. U.S. National Archives and Records Administration. "."

  10. Richard Nixon Foundation. "."

  11. Law Library-American Law and Legal Information. "."

  12. The Hill. "."

  13. Congressional Budget Office. "."

  14. Medicaid and CHIP Payment and Access Commission. "."

  15. Social Security Administration. "."

  16. U.S. Department of Agriculture. ""

  17. U.S. Department of Agriculture. "."

  18. U.S. Department of Agriculture. Economic Research Service. "."

  19. The Kaiser Foundation/Kaiser Commission on Medicaid and the Uninsured. ""

  20. U.S. Department of Housing and Urban Development. "."

  21. Internal Revenue Service. "."

  22. Pew Research Center. "."

  23. Cornell Law School. "."

  24. Everything Policy. "."

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