STATE EXPERIMENTATION WITH TIME-LIMITED AFDC BENEFITS - WHAT DIFFERENTIATES REFORM-MINDED STATES FROM OTHERS

This study examines states' experimentation with time-limited Aid to F amilies with Dependent Children (AFDC) benefits prior to the passage o f the 1996 welfare reform legislation. The data reveal substantial var iation in states' definitions of time-limited benefits adopted under t he federal waivers. Some states adopted a ''2 years and you're out'' p olicy (i.e., AFDC cash benefits would be cut off), whereas others inte rpreted time limits much more leniently. Next, this study examines the economic, social, and political characteristics of states most likely associated with their adoption of this policy, both broadly and narro wly defined. The findings suggest that ability to pay, willingness to pay and political climate are among the factors that distinguish ''ref orm-minded'' states from others. These same factors are likely to be i mportant following the 1996 legislation, as states assume much greater control than in the past in designing their welfare plans.