Welfare is a term used to describe the benefits distributed by governmental entities to support low-income Americans. The benefits paid to the poor include cash or in-kind benefits such as food or rent vouchers. Both cash and in-kind benefits are included in the general definition of welfare. The programs that define welfare are often termed antipoverty measures. Welfare programs in the United States are run at the federal, state, and local levels.
See further information on the purpose of welfare.
Means Tested / Contributory
The common element of all welfare programs is that they are means-tested. To qualify for benefits, the individual or family must have income from jobs or self-employment below a defined level. Income above the means-tested level means the individual or family does not qualify for benefits. The qualification levels are unique per program. All Welfare Programs are free to participants – no past contributions or taxes paid are necessary to qualify. These two elements, means-tested and non-contributory, define the programs as welfare.
More Information On Welfare
The federal government runs 13 welfare programs. They are listed and described on the U.S. Welfare Programs Page. Welfare also includes the Medicaid Program, which provides health care to low-income Americans.
Large programs not defined as welfare
Welfare does not include Social Security, Medicare, or unemployment programs. These programs are not means-tested – they are available to all Americans regardless of income level. The programs are also contributory. To qualify, Americans must have contributed to the programs through payroll taxes. Because the programs are not means-tested or contributory, they are not considered Welfare Programs. See further discussion of this distinction on the Entitlement Program Page.
A Narrow Definition of Welfare
U.S. Welfare is sometimes defined narrowly as the TANF program (Temporary Assistance to Needy Families). TANF is the successor of the AFDC program (Aid to Families with Dependent Children), the first Welfare Program instituted in the nation. TANF was created in the Welfare Reform Act of 1996 and has been the subject of much analysis and debate ever since. The program makes up a tiny percentage of the welfare landscape today but is often discussed or reported as welfare. An example would be the reporting of welfare caseloads. For more information on the program and its history, see the TANF page. See also the history of welfare.
Further definition of U.S. Welfare Programs – What’s in and What’s Out
Here are further details of what program benefits are included in the definition of welfare and what are not.
SNAP is an example of a Program distributing welfare benefits. SNAP distributes a voucher for recipients to purchase food. However, other governmental programs regarding food, such as inspections, agricultural support, or research, are not included in welfare. These programs have functions other than supporting low-income Americans. Here are some examples of what is defined as welfare and what is not.
Housing vouchers for rent – Included
Public Housing – Included
FHA, Fannie Mae, and Freddie Mac – Excluded
“Excess EITC”; cash paid out above taxes owed – Included
Tax credits to lessen income tax paid – Excluded
Pell Grants (college scholarships) – Included
Loans to students – Excluded
Child school lunch program – Included
Child foster care and child support enforcement – Excluded
Phone support for low-income Americans (Lifeline) – Included
Phone support for schools, libraries, and rural areas – Excluded
Snap (food Stamps) – Included
Food inspection, regulation, farm aid – Excluded