HHS Secretary Tommy G. Thompson today released a new department report that shows welfare dependency has not only fallen dramatically but families also are faring significantly better financially since welfare reform was enacted nationwide in 1996.

Released on the fifth anniversary of the signing of the welfare reform legislation, the Indicators of Welfare Dependence annual report to Congress shows that the poverty rate has fallen, more former welfare recipients are working and the number of Americans dependent on Temporary Assistance for Needy Families (TANF) is down.

"Five years later, welfare caseloads across America have decreased by remarkable amounts, but more important is the fact that these families are better off," Secretary Thompson said. "Welfare reform is lifting people up, helping them to find jobs and succeed."

Among the report's findings:

· As the welfare dependency rate fell between 1993 and 1998, the poverty rate for all individuals also fell from 15.1 percent in 1993 to 12.7 percent in 1998. It dropped even further in 1999 to 11.8 percent, the lowest rate since 1979.

· In 1998, 3.8 percent of the total population received more than half of their total family income from TANF, food stamps and/or SSI, down considerably from 5.8 percent in 1993.

· This drop in dependency reflects the drop in AFDC/TANF. The recipiency rate for AFDC/TANF fell from 5.4 percent to 3.2 percent between 1993 and 1998, while food stamp recipiency rates fell from 10.5 percent to 7.3 percent over the same period.

· Workforce participation has increased considerably among AFDC/TANF families between 1993 and 1998. In an average month in 1998, 56 percent of TANF recipients lived in families with at least one family member in the labor force. That is up from 43 percent in 1993.

"This report shows that welfare reform has helped an unprecedented number of Americans enter the workforce," Secretary Thompson said. "At the same time, we must continue to work together to continue to create more opportunities for all families, move more people into the workforce and help them climb the career ladder.

"Welfare reform is proving to be a compassionate and effective way to help families escape poverty and move toward a higher quality of life."

Enacted by Congress and signed into law in August 1996, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 dramatically changed the nation's welfare system into one that requires work in exchange for time-limited assistance. The act contains strong work requirements combined with supports for families moving from welfare to work, including increased funding for child care and continued eligibility for medical coverage.

Since August 1996, the welfare caseload has fallen from 12.2 million recipients to 5.8 million - the largest decline in history and the lowest percentage of the population on welfare since 1965.