Initial Findings From an Evaluation of the 1981 AFDC Changes

GAO discussed changes to the Aid to Families with Dependent Children (AFDC) program under the Omnibus Budget Reconciliation Act of 1981. GAO found that there were major reductions in national AFDC caseloads and outlays. In addition, GAO found that most working recipients in five large cities who lost AFDC due to changes in the act did not quit their jobs nor did they return to the AFDC rolls by the fall of 1983. However, these families experienced substantial income losses on the average and many were without public or private health insurance.