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Towards the End of Poverty: TANF Reauthorization 2002 

Forum: TANF Reauthorization
Date: 2001, Nov 28
From: Beandrea Davis <btd@sas.upenn.edu>

The U.S. has the capacity to end poverty. In a nation of such prosperity, we must do all that we can to achieve this goal. Researchers have generated several anti-poverty strategies in response to studying the effects of 1996 welfare reform. These strategies must be included in the TANF reauthorization bill. To do this, I propose three policy initiatives. First, "make work pay" by increasing the minimum wage and expanding the earned income tax credit (EITC). Expanding the EITC lifts 4.5 million Americans above the poverty line, so we should continue to expand it.4 The current minimum wage is just $5.15. Raising this to at least $6.50 would do much to aid the working poor. Moreover, encouraging unionization in industries heavily supplied with low-wage labor would provide working poor people with collective bargaining power to negotiate higher wages. Second, strengthen and establish workplace supports which will ensure that people with multiple barriers to work will be able to keep their jobs. Congress should increase the TANF block grant to further establish these work supports, and prohibit state supplantation of these funds. More funding should be spent on education and training, providing low-skilled workers with opportunities for greater educational attainment. Increasing funding for childcare subsidies, access to healthcare, and access to transportation is also critical to providing workplace support. Finally, support further research which encourages researchers and community organizations that serve low-income groups to collaborate in creating further anti-poverty strategies. This will give the working poor more agency and ensure that these anti-poverty strategies are directly aligned with their needs.The Center for Urban Research and Learning at Loyola University Chicago and University Community Collaborative of Philadelphia at Temple University are leaders in this area. The absence of political will promises to be a major obstacle to the implementation of these initiatives. Many members of Congress are opposed to the expansion of welfare funding, and do not believe that trying to end poverty is realistic. However, if Congress increases funding now, in the long-term, the nation will benefit by lifting people out of poverty, and thus reducing the number of TANF recipients overall. There is little evidence showing that reducing the number of out-of-wedlock births has a direct affect on reducing the number of people on welfare, so Congress could reallocate this funding to expand TANF.5 While increasing the EITC and the minimum wage alone will not end poverty, in conjunction with other anti-poverty strategies, they could affect millions of Americans with low-incomes. Some individuals will not see the need for community-based research which allows poor people to play a role in eliminating poverty. However, if we want to ensure that welfare policies are positively impacting the working poor, they must be involved in this process. In October of this year, the U.S unemployment rate rose to 5.4%, the biggest jump in five years.6 In these times of economic uncertainty, ending poverty in the U.S. must be the central goal of the upcoming TANF legislation Thank you. Beandrea Davis**University of Pennsylvania '03**btd@sas.upenn.edu

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