Representative Paul Ryan (R-WI) |
Representative Paul Ryan released a new discussion draft
through the House Budget Committee called “Expanding Opportunity in America”.
This expansive paper focuses on plans to combat poverty by tackling several
areas: welfare programs, tax code, public education, criminal justice and
regulatory reform. Some of the ideas are more original than others, but the
most interesting by far is Ryan’s “Opportunity Grant”. The Opportunity Grant
strives to reform the welfare system by letting the states experiment on
welfare programs—and, hopefully, simplify them.
The welfare system in America is pretty complicated. There
are no fewer than 11 different safety net programs and despite good intentions,
the cumbersome rules and forms sometimes make the system confusing and even
ineffective. If a family is in need of government assistance, they must research
and determine their eligibility for any of the following programs:
- Negative income tax (EITC and child tax credit)
- Supplemental Nutritional Assistance Program
- Housing Assistance (Help finding affordable housing and paying rent)
- Supplemental Security Income for the disabled, blind or elderly
- Pell Grants (Money for students to help with room and board)
- Temporary Assistance for Needy Families
- Job Training (Employment support)
- WIC (Nutrition for pregnant women, nursing moms, and children under 5)
- Child care and after school programs
- Low Income Home Energy Assistance (Help to heat or cool a home)
- Lifeline (Phone subsidy, including cell phones)
Navigating all of these programs takes considerable effort
and many people who are struggling just don’t have the time. Paul Ryan’s
Opportunity Grant proposal would simply this system by allowing states to consolidate
all federal welfare funds through one state office. This way benefits can be
coordinated on the federal, state, and community level. After meeting with a
welfare provider of their choice, low-income families would receive a single
payment based on their specific needs.
The Opportunity Grant provides flexibility first and
foremost. Poverty takes on so many different forms, from temporary assistance
to long-term disability, that solutions must be adaptable. States can experiment
with a system that can cater to specific situations. Case management, for
example, can make social services so much more effective because the solution
is based on the individual’s needs. This type of system would avoid the
“one-size-fits-all approach” by customizing each aspect of the process. In the
discussion draft, Ryan outlines a situation where this responsiveness would be
important:
“For example, it makes little sense
to provide a household with a consistent stream of SNAP benefits when what the
household may need most is reliable transportation to and from work. Giving
providers this kind of flexibility will allow them to intervene early on with
targeted benefits in cases where short-term assistance can prevent someone from
falling into deeper poverty.”
At first, Opportunity Grant would only be open to a test
group of states. In order to protect the needs of low-income families and
individuals, participating states will be required to follow several criteria: (1)
Each state has to spend the federal money on people in need; (2) Welfare
recipients must follow work requirements; (3) States should have to use at
least two different providers so that the state social welfare office would not
be overworked; and (4) There must be a third party observer (other than the
state or federal government) to monitor progress. Within these parameters,
states would be free to experiment and create a new organization.
The main goal of the Opportunity Grant is to gather research
from each of the participating states and use that information to find an
approach to welfare that can be used nationwide. This type of experimentation
is not new. In 2006, the state of Massachusetts passed a health reform law with
the goal of universal health care coverage. The law was unique because of its
idea of health care exchanges, set up to facilitate the purchase of insurance
policies throughout the state. In this case, state experimentation in
Massachusetts influenced how the federal government approached health care reform.
When Congress passed the Affordable Care Act, the 2010 health care reform bill borrowed
this idea of health care exchanges.
Experimentation within the states is necessary for progress.
Justice Louis D. Brandeis famously called states “laboratories for democracy”,
meaning that the states are often better equipped to find solutions for policy
challenges. Because the federal government is so large and cumbersome, it is much
easier for states to do the bulk of political discovery. If five states participate
in the Opportunity Grant program, there will be five different proposals for welfare
reform and five sets of data showing the effectiveness of each system. This
wealth of information can inform members of Congress. Instead of using untested
theories to reform welfare, legislators can make informed decisions.
After you do, make sure to contact the House Budget
Committee and let them know what you think: ExpandingOpportunity@mail.house.gov