Reform has transformed traditional entitlement to cash welfare under Aid to
Families with Dependent Children (AFDC) into a transitional program known
as Temporary Assistance to Needy Families (TANF). Because of the new work r
equirements and the time-limited nature of assistance, policy makers are in
creasingly confronted with what to do when welfare recipients do not effect
ively make the transition from welfare to work. Increasingly, the language
of public health is being used to determine who is "employable" and who is
not. Thus renewed attention is being focused on the individual characterist
ics of participants themselves, particularly specific diagnoses that might
reduce employability. This article focuses on substance abuse and mental he
alth problems among single mothers and examines their relationship to welfa
re receipt. We analyze data from the 1994 and 1995 National Household Surve
y of Drug Abuse (NHSDA) and find that 19 percent of welfare recipients meet
the criteria for a DSM-III-R (Diagnostic and Statistical Manual of Mental
Disorders, third edition revised) psychiatric diagnosis. About the same per
centage have used illicit drugs during the previous year. Logistic regressi
on results indicate that mental and behavioral health problems that are sig
nificant barriers to self-sufficiency are increasingly important in this er
a of time-limited benefits.