Who Really Receives Welfare and Government Entitlements?

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Cole, Nicki Lisa, Ph.D. "Who Really Receives Welfare and Government Entitlements?" ThoughtCo, Mar. 2, 2017, thoughtco.com/who-really-receives-welfare-4126592. Cole, Nicki Lisa, Ph.D. (2017, March 2). Who Really Receives Welfare and Government Entitlements? Retrieved from https://www.thoughtco.com/who-really-receives-welfare-4126592 Cole, Nicki Lisa, Ph.D. "Who Really Receives Welfare and Government Entitlements?" ThoughtCo. https://www.thoughtco.com/who-really-receives-welfare-4126592 (accessed October 23, 2017).
A white woman and her daughter shopping with EBT coupons, also known as food stamps, represent the largest racial group that benefits from SNAP in the U.S.
A woman and her daughter counts out Electronic Benefits Transfer (EBT) coupons, more commonly known as Food Stamps, while shoping for groceries in the GrowNYC Greenmarket in Union Square on September 18, 2013 in New York City. According to a Gallup poll released earlier this month, 20% of American adults struggled to buy enough food at some point in the last year. The rate of hungry people in America has gone relatively unchanged since 2008, suggesting the economic recovery since the 2008 recession may be disproportionately affecting the wealthy. More than 50 of GrowNYC's Greenmarket's now accept EBT; over $800,000 in sales were complete with EBT payment at the Greenmarket's in 2012. GrowNYC is also currently offering a program known as Health Bucks: for ever $5 spent using EBT at a Greenmarket, GrowNYC provides an additional $2, which can be spent specifically on fresh fruits and vegetables. Andrew Burton/Getty Images
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Is Dependency on Welfare Out of Control?

A white woman and her daughter shopping with EBT coupons, also known as food stamps, represent the largest racial group that benefits from SNAP in the U.S.
A woman and her daughter counts out Electronic Benefits Transfer (EBT) coupons, more commonly known as Food Stamps, while shoping for groceries in the GrowNYC Greenmarket in Union Square on September 18, 2013 in New York City. According to a Gallup poll released earlier this month, 20% of American adults struggled to buy enough food at some point in the last year. The rate of hungry people in America has gone relatively unchanged since 2008, suggesting the economic recovery since the 2008 recession may be disproportionately affecting the wealthy. More than 50 of GrowNYC's Greenmarket's now accept EBT; over $800,000 in sales were complete with EBT payment at the Greenmarket's in 2012. GrowNYC is also currently offering a program known as Health Bucks: for ever $5 spent using EBT at a Greenmarket, GrowNYC provides an additional $2, which can be spent specifically on fresh fruits and vegetables. Andrew Burton/Getty Images

We've all heard the stereotypes about people who receive welfare. They're lazy. They refuse to work and have more kids just to collect more money. In our mind's eye, they are most often people of color. Once they're on welfare, they stay on it, because why would you choose to work when you can get free money every month?

Politicians traffic in these stereotypes too, which means they play an active role in influencing government policy. During the 2015‒16 Republican primary, the problem of an increasingly expensive welfare state was commonly cited by the candidates. In one debate, then Governor of Louisiana Bobby Jindal said, "We are on the path to socialism right now. We’ve got record dependents, a record number of Americans on food stamps, record low participation rate in the work force."

President Trump has regularly claimed that reliance on welfare is "out of control" and even wrote about it in his 2011 book, Time to Get Tough. In this book, he stated, without evidence, that recipients of TANF, popularly known as food stamps, "have been on the dole for nearly a decade," and suggested that widespread fraud in this and other government assistance programs was a significant problem.

Fortunately, the reality of who and how many people receive welfare and other forms of assistance and the circumstances of their participation in these programs is well-documented in factual data collected and analyzed by the U.S. Census Bureau and other independent research organizations. So, let's get down to those non-alternative facts.

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Spending on the Social Safety Net Is Just 10 Percent of the Federal Budget

A pie chart analysis by the Center on Budget and Policy Priorities shows that in 2015, social safety net or welfare programs accounted for just 10 percent of federal spending.
A pie chart analysis of 2015 federal spending. Center on Budget and Policy Priorities

Contrary to the claims of many members of the Republican party, that spending on the social safety net, or welfare programs, is increasingly out of control and is crippling the federal budget, these programs accounted for just 10 percent of federal spending in 2015.

Of the 3.7 trillion dollars the U.S. government spent that year, the largest expenditures were Social Security (24 percent), healthcare (25 percent), and defense and security (16 percent), according to the Center on Budget and Policy Priorities (a nonpartisan research and policy institute).

Several safety net programs account for just 10 percent of that spending. Included in this percentage are Supplement Security Income (SSI), which provides cash support to the elderly and disabled poor; unemployment insurance; Temporary Assistance to Needy Families (TANF), which is what is commonly referred to as "welfare"; SNAP, or food stamps; school meals for low-income children; low-income housing assistance; child care assistance; assistance with home energy bills; and programs that provide help to abused and neglected children. In addition, programs that primarily help the middle class, namely the Earned Income Tax Credit and the Child Tax Credit, are included within this 10 percent.

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The Number of Families Receiving Welfare Today Is Lower than in 1996

Contrary to the belief of President Trump and many others, enrollment in welfare programs like TANF is not
A graph from the CBPP's Chart Book: TANF at 20 shows that the number of needy families supported by the program has declined sharply since 1996, though the numbers in poverty and deep poverty have increased over the same period. Center on Budget and Policy Priorities

Though President Trump claims that reliance on welfare, or Temporary Assistance for Needy Families (TANF), "is out of control," in fact, far fewer families in need receive support from this program today than did when welfare reform was enacted in 1996.

The Center for Budget and Policy Priorities (CBPP) reported in 2016 that since welfare reform was enacted and Aid for Families with Dependent Children (AFDC) was replaced by TANF, the program has served progressively fewer and fewer families. Today, the program's benefits and eligibility for them, which are determined on a state-by-state basis, leave many families in poverty and deep poverty (living on less than 50 percent of the Federal Poverty Line).

When it debuted in 1996, TANF provided important and life-changing assistance for 4.4 million families. In 2014, it served just 1.6 million, despite the fact that the numbers of families in poverty and deep poverty increased over that time period. Just over 5 million families were in poverty in 2000, but that number had risen to over 7 million by 2014. That means that TANF does a worse job of lifting families out of poverty than did its predecessor, AFDC, prior to welfare reform.

What's worse, reports the CBPP, the cash benefits paid to families have not kept pace with inflation and home rental prices, so the benefits received by needy families enrolled in TANF today are worth about 20 percent less than what they were worth in 1996.

Far from enrollment and spending on TANF being out of control, they are not even remotely sufficient.

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Receiving Government Benefits Is More Common Than You Think

In 2012 more than 25 percent of all Americans participated in a major government assistance program, showing that the need for government assistance is normal in the U.S.
Figures 1 and 2 from the 2015 U.S. Census Bureau report on participation in government assistance programs show average monthly participation rates and annual participation rates. U.S. Census Bureau

Though TANF serves fewer people today than it did in 1996, when we look at the bigger picture of welfare and government assistance programs, many more people are receiving help than you might think. You might even be one of them.

During 2012, more than 1 in 4 Americans received some form of government welfare, according to a 2015 report by the U.S. Census Bureau titled "Dynamics of Economic Well-Being: Participation in Government Programs, 2009–2012: Who Gets Assistance?". The study examined participation in the six major government assistance programs: Medicaid, SNAP, Housing Assistance, Supplemental Security Income (SSI), TANF, and General Assistance (GA). Medicaid is included in this study because, though it falls under healthcare spending, it is a program that serves low-income and poor families who cannot otherwise afford medical care.

The study also found that the average monthly rate of participation was just about 1 in 5, meaning more than 52 million people received assistance during each month of 2012.

However, it's worth pointing out that most benefits recipients are concentrated within Medicaid (15.3 percent of the population as a monthly average in 2012) and SNAP (13.4 percent). Just 4.2 percent of the population received housing assistance in a given month in 2012, just 3 percent received SSI, and a tiny, combined 1 percent received TANF or GA.

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Many Are Short-Term Participants

A U.S. Census Bureau bar graph shows recipients of government assistance programs by duration of enrollment.
Figure 3 from the 2015 U.S. Census Bureau report on recipients of government assistance shows that nearly a third of all recipients are short-term in nature. U.S. Census Bureau

While most of those who received government assistance between 2009 and 2012 were long-term participants, about a third were short-term participants who received aid for a year or less, according to the 2015 U.S. Census Bureau report.

Those more likely to be on the long-term end are those living in households with incomes below the Federal Poverty Line, children, Black people, female-headed households, those without a high school degree, and those not in the labor force.

Conversely, those most likely to be short-term participants are white, those who attended college for at least a year, and full-time workers.

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Most People Receiving Government Assistance Are Children

Though many think of recipients of welfare and other government benefits as lazy adults, in fact, most recipients are children.
Figures 8 and 9 from a 2015 U.S. Census Bureau report on who receives government assistance show that it is children who are the primary recipients of the major programs, and that they are mostly receiving long-term assistance. U.S. Census Bureau

The vast majority of Americans receiving one of the six major forms of government assistance are children below the age of 18. Nearly half of all children in the U.S.—46.7 percent—received some form of government assistance at some point during 2012, while about 2 in 5 American children on average received assistance in a given month during the same year. Meanwhile, less than 17 percent of adults under the age of 64 on average received assistance during a given month in 2012, as did 12.6 percent of adults over the age of 65.

The 2015 report by the U.S. Census Bureau also shows that children participate for longer durations in these programs than do adults. From 2009 to 2012, more than half of all children who received government assistance did so for somewhere between 37 and 48 months. Adults, whether they are over or under 65 years of age, are split between short- and long-term participation, with their rates of long-term participation far lower than those for children.

So when we imagine a welfare recipient in our mind's eye, that person should not be an adult sitting on a couch before a television. That person should be a child in need.

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High Rate of Participation among Children Largely Attributable to Medicaid

Across the U.S. about 2 in 5 children are enrolled in Medicaid, with rates above 50 percent in some states.
A map created by the Kaiser Family Foundation shows how rates of enrollment in Medicaid among children differed by state in 2015. Kaiser Family Foundation

The Kaiser Family Foundation reports that, in 2015, 39 percent of all children in America—30.4 million—received healthcare coverage through Medicaid. Their rate of enrollment in this program is far higher than that for adults under the age of 65, who participate at a rate of just 15 percent.

However, the organization's analysis of coverage by state shows that rates differ widely across the nation. In three states, more than half of all children are enrolled in Medicaid, and in another 16 states, the rate is between 40 and 49 percent.

The highest rates of child enrollment in Medicaid are concentrated in the South and Southwest, but rates are substantial in most states, with the lowest state rate at 21 percent, or 1 in 5 children.

Additionally, more than 8 million children were enrolled in CHIP in 2014, according to the Kaiser Family Foundation, a program that provides medical care to children from families earning above the Medicaid threshold but still unable to afford healthcare.

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Far From Lazy, Many Who Receive Benefits Are Working

Data from the Kaiser Family Foundation shows that most recipients of Medicaid come from working households.
A map shows the percent of non-elderly Medicaid recipients who have at least one full-time worker in the household. Rates were above 50 percent of all enrollees in every state in 2015. Kaiser Family Foundation

Data analysis by the Kaiser Family Foundation shows that, in 2015, the vast majority of people enrolled in Medicaid—77 percent—were in a household where at least one adult was employed (full- or part-time). A full 37 million enrollees, more than 3 in 5, were members of households with at least one full-time worker.

The CBPP points out that more than half of SNAP recipients who are able-bodied working-age adults are working while receiving benefits, and more than 80 percent are employed in the years prior to and following participation in the program. Among households with children, the rate of employment surrounding SNAP participation is even higher.

The 2015 report by the U.S. Census Bureau confirms that many recipients of other government assistance programs are employed. About 1 in 10 full-time workers received government assistance in 2012, while a quarter of part-time workers did.

Of course, rates of participation in the six major government assistance programs are much higher for those who are unemployed (41.5 percent) and outside of the labor force (32 percent). And, it's worth noting that those who are employed are more likely to be short-term rather than long-term recipients of government assistance. Nearly half of those who are recipients from homes with at least one full-time worker participate for no longer than a year.

All of this data points to the fact that these programs are serving their purpose of providing a safety net in time of need. If a member of a household suddenly loses a job or becomes disabled and unable to work, programs are in place to ensure that those affected do not lose their housing or starve. That's why participation is short-term for many; the programs allow them to stay afloat and recover.

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By Race, the Greatest Number of Recipients Are White

Though rates of participation in government assistance programs are higher for people of color, greater numbers of whites receive benefits from the six major programs.
A table created by the Kaiser Family Foundation shows that white people were the racial group with the highest number of enrollees in Medicaid in 2015. Kaiser Family Foundation

Though rates of participation are higher among people of color, it is white people who are the greatest number of recipients when measured by race. Given the population of the U.S. in 2012 and the annual rate of participation by race reported by the U.S. Census Bureau in 2015, about 35 million white people participated in one of the six major government assistance programs that year. That's about 11 million more than the 24 million Hispanics and Latinos who participated and considerably more than the 20 million Black people who received government aid.

In fact, most ​white people receiving benefits are enrolled in Medicaid. According to analysis by the Kaiser Family Foundation, 42 percent of non-elderly Medicaid enrollees in 2015 were white. However, U.S. Department of Agriculture data for 2013 show that the largest racial group participating in SNAP are also white, at more than 40 percent.

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The Great Recession Caused Increased Participation for All Types of People

Data from the U.S. Census Bureau show that people of all educational levels received government assistance between 2009 and 2012, and in fact, rates of participation rose for all groups during this time.
Figures 16 and 17, from the 2015 U.S. Census Bureau Report, show that average monthly and total annual rates of participation in major government assistance programs increased for all people, regardless of education level. U.S. Census Bureau

The 2015 report by the U.S. Census Bureau documents rates of participation in government assistance programs from 2009 through 2012. In other words, it shows how many people received government assistance in the final year of the Great Recession and in the three years that followed it, generally known as the recovery period.

However, the findings of this report show that the period of 2010‒12 was not a period of recovery for all, as overall rates of participation in government assistance programs rose each year from 2009. In fact, the rate of participation increased for all types of people, regardless of age, race, employment status, type of household or family status, and even level of education.

The average monthly participation rate for those without a high school degree rose from 33.1 percent in 2009 to 37.3 percent in 2012. It rose from 17.8 percent to 21.6 percent for those with a high school degree, and from 7.8 percent to 9.6 percent for those who attended college for one year or more.

This shows that despite how much education one attains, periods of economic crisis and job scarcity impact everyone.