Tom Harkin: “The Welfare-To-Work Program provides formula grants to States and requires States to develop a formula for distribution…”

“The Welfare-To-Work Program provides formula grants to States and requires States to develop a formula for distribution of the funds within the State in consultation with sub-State areas. However, it is not clear what types of entities are eligible to provide the welfare-to-work services and that States have flexibility on this score. In 1989, Iowa established 11 Family Development and Self-Sufficiency Programs to work with welfare recipients with a history of long-term dependency on the program and those who were at risk of long term dependency. These projects, 10 at nonprofit organizations, have been evaluated and have demonstrated success in moving welfare recipients off of welfare and into self-sufficient employment. In addition, a number of community action agencies and community development corporations have also been working with welfare recipients on exactly the kind of activities envisioned by the pending legislation. I just want to make sure that a State may provide funding from the Welfare-To-Work Program to entities such as community action agencies, community development corporations and other nonprofit organizations.”