Only 21% of adults receiving cash welfare benefits are working — a stunning collapse of the work requirements that made welfare reform successful three decades ago.
That’s the alarming finding from a new Independent Women’s Forum report calling for conservatives to re-form welfare reform before the 2026 midterms.
The report shows the U.S. now spends over $1 trillion annually on more than 80 anti-poverty programs, with 85% of that spending automatic and mandatory. Together, these programs have become one of the largest spending categories in the federal budget — driven by waste, fraud, and relaxed enforcement.
“Only 21% of adult TANF recipients are working.”
Welfare reform in the 1990s brought tremendous success. Adults and children moved out of poverty. Mothers joined the workforce in greater numbers. A strict work requirement was implemented for Temporary Assistance for Needy Families (TANF) — cash benefits — and recipients could receive benefits for a lifetime limit of five years.
Welfare reform in the 1990s moved families away from government dependence and closer to the ability to support themselves sustainably.
Thirty years later, however, those same programs have once again made families dependent on benefits.
Eligibility expansions, sweeping policies, and economic downturns have expanded welfare rolls over the years. Categorical eligibility — a practice that allows individuals to qualify for one welfare program by qualifying for another — has allowed the programs to grow unchecked.
Work requirements have been relaxed or poorly enforced. The strict requirements that made TANF successful were cast aside.
Alarmingly, poor verification processes have allowed waste, fraud, and abuse to go largely unaddressed.
Welfare and entitlement programs such as Medicaid, Medicare, the Earned Income Tax Credit, and SNAP made up 67% of improper payments across the federal government in 2025, according to a Government Accountability Office report.
TANF has been deemed susceptible to such significant improper payments that the estimate for waste in that program is not reported.
The Independent Women’s report offers a roadmap to fix the broken system: prioritize work, reduce unnecessary government burdens, and combat fraud by refocusing welfare programs to serve their intended populations.
Wide eligibility thresholds and a lack of reporting and accountability in welfare programs such as SNAP and TANF have allowed waste, fraud, and abuse to increase federal spending without better outcomes.
The report recommends ending self-certification and verifying data before program enrollment, tightening eligibility requirements, and instituting consequences for states that allow waste, fraud, and abuse in these programs.
Stricter eligibility requirements will ensure that only indigent people qualify for benefits. Stronger verification processes before benefits are paid will prevent improper payments.
Technology can help expedite the verification process by facilitating collaboration and data sharing across agencies and governments.
“Welfare reform served Americans well and allowed families to thrive in the 1990s by rewarding work, moving families toward independence from the government, while still giving assistance to families in need.”
Enforcing work requirements for able-bodied adults and parents with older children will promote needed independence and encourage individuals to thrive in the American economy.
What worked 30 years ago can work again.
Policymakers must deliver accountability and oversight over social support programs to ensure they truly serve those who need them — not trap families in generational dependence.
