The government incentivized single parenting over marriage marriage

How Welfare Reform Made Women Worse Off: What the 1996 Law Got Wrong

In 1996, the U.S. overhauled its welfare system, replacing Aid to Families with Dependent Children (AFDC) with Temporary Assistance for Needy Families (TANF). Framed as a way to promote work and reduce dependency, the reform slashed caseloads and pushed millions of women into the workforce.

But decades later, a deeper look reveals that these changes often left women worse off—financially, emotionally, and socially.

The Hidden Cost of “Work First”

1. Falling Income for the Poorest WomenAfter welfare reform, employment among single mothers did increase—but that’s only part of the story. Many of the jobs offered low wages, no benefits, and little stability.

Research shows that 30–50% of women who left welfare ended up with lower household incomes than before. The number of people on welfare dropped, but poverty didn’t.

2. The Rise of the Working PoorThe reform did not eliminate poverty. Instead, it moved millions from welfare to low-income work. These women became part of a growing “working poor” class, juggling multiple jobs while still struggling to cover basic expenses. The poverty rate for single mothers stayed steady, and in many cases, so did hardship.

3. Blocked from Education and Upward MobilityOne of the most damaging elements of TANF is its emphasis on immediate employment. Unlike past programs that supported education and job training, TANF limited these options. That meant many women couldn’t pursue the college degrees or vocational skills that might have helped them escape poverty long-term.

4. Stress, Exhaustion, and Poor Health OutcomesFor mothers under TANF, balancing mandatory work hours, unstable jobs, and child care became a daily battle. This led to increased stress, exhaustion, and emotional burnout. Studies even show worse health outcomes for children of mothers affected by welfare reform, suggesting the stress took a multigenerational toll.

5. The Disconnected: Women with Nowhere to TurnAs benefits expired and jobs remained scarce in certain areas, many women became part of a disturbing new demographic: the “disconnected.” These are single mothers who receive no welfare and have no income from work. Their numbers grew, especially in states with the harshest time limits and sanctions.

6. Gendered and Racial ImpactsWelfare reform disproportionately harmed Black women and other women of color. The system reinforced stereotypes—penalizing single mothers while pushing a traditional two-parent family ideal. It failed to account for structural barriers like lack of childcare, transportation issues, and discrimination in the labor market.

What Was Gained—and What Was Lost

Yes, some women did report improved mental health after entering the workforce. For some, employment brought self-esteem and a sense of purpose. But these gains often came at the cost of economic security. And during downturns—like the Great Recession—millions who had left welfare had no safety net to fall back on.

Final Thoughts

Welfare reform succeeded in cutting caseloads. But it failed in a more important mission: helping women and families out of poverty. For too many, it replaced one form of struggle with another. Low-wage jobs without childcare, limited education, and insufficient support systems created a cycle of hardship that still exists today.