An Associated Press story this past week related how unspent welfare money totalling billions of dollars is tempting some in Congress who "want to reclaim the cash windfall from the states." The unusual problem is causing a fight among Republicans who want the money for disaster relief and others who argue they must keep promises made during the welfare debate just three years ago, and let the states spend the money as they see fit.
"We made a deal," House Ways and Means Committee Chairman Bill Archer, R-Texas, wrote to Senate majority leader Trent Lott, R-Miss. "As the state legislatures confront the toughest challenges of welfare reform, Congress is proposing to pull the rug out from under them." Speaking for many governors, Wisconsin Gov. Tommy Thompson, a Republican, said he will fight any raid on state money. "There is no question that the Congress made a pledge, a promise," Thompson said. "How can you ever be trusted again if on such a serious issue as this you give your word ... and then you go back on it?"
Americans have left the welfare rolls faster than anyone predicted, leaving states with extra money not spent on welfare checks. A strong economy helped people find jobs, and tougher rules discouraged people from staying on assistance. But the money the federal government parcels out to states was based on earlier caseloads that were much higher. Many states have saved the money in case the economy turns down, and many say it will be needed to provide more intensive services for welfare recipients who need the most help getting off welfare. At the end of September, after two years under the new system, more than $3 billion was sitting unused in the federal accounts.
The logic of Archer and Thompson is hard to argue with. Congress should leave its hands off the money and keep the deal it made with the states in 1996.
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