This article reports the results of a survey of State Aid to Families
with Dependent Children (AFDC) rules regarding the treatment of unrela
ted cohabiters in households containing AFDC units. We examine State t
reatment of cash and in-kind contributions by cohabiters and find that
the AFDC grant is usually not affected if the cohabiter makes in-kind
contributions toward food and shelter expenses of the household. Howe
ver, the grant generally is reduced if the cohabiter contributes cash
to the AFDC unit unless the cash is for shared household expenses. In
addition, a few States have specific policies toward cohabiters that a
re not based on initial evidence of cohabiter contributions.