New Welfare Requirements May Cost the City $240M
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New federal work requirements for welfare recipients could cost the city $240 million this year, according to a report by the Independent Budget Office.
The federal rules mandate that 50% of families on welfare work a set number of hours each week. This has been the case since 1996, but New York was effectively exempt from the requirement because of a dramatically decreased welfare caseload that resulted in reductions in the work quota. Now, only caseload reductions since 2005 can be used to reduce work quotas.
The city failed to meet the quota in the first quarter — only 37.7% of welfare recipients met work requirements. If the federal government cuts New York’s welfare grant as a penalty for not meeting the quota, “New York City could be on the hook for as much as $240 million for the first year,” the report says.
