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Pursuant to a congressional request, GAO evaluated changes that the Omnibus Budget Reconciliation Act of 1981 made to the Aid to Families with Dependent Children (AFDC) Program to: (1) estimate the effect of the changes on the national AFDC case load and outlays; (2) determine whether the changes in the treatment of earned income influenced the work effort of either the cases that the act removed from AFDC or the cases that remained; and (3) ascertain the economic well-being of affected AFDC families.

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