Aid to Families with Dependent Children (AFDC) was a federal assistance program in effect from 1935 to 1996 created by the Social Security Act (SSA) and administered by the United States Department of Health and Human Services that provided financial assistance to children whose families had low or no income.
This program grew from a minor part of the social security system to a significant system of welfare administered by the states with federal funding. However, it was criticized for offering incentives for women to have children, and for providing disincentives for women to join the workforce. In 1996, AFDC was replaced by the more restrictive Temporary Assistance for Needy Families (TANF) program.
The program was created under the name Aid to Dependent Children (ADC) by the Social Security Act of 1935 as part of the New Deal. ADC dispensed scant relief to poor single mothers. The federal government authorized case workers, supervisors, and administrators with discretion to determine who received aid and how much. ADC was primarily created for white single mothers who were expected not to work. Black mothers who had always been in the labor force were not considered eligible to receive benefits. The words "families with" were added to the name in 1962, partly due to concern that the program's rules discouraged marriage.
The Civil Rights Movement and the efforts of the National Welfare Rights Organization (NWRO) in the 1960s expanded the scope of welfare entitlements to include black women. The welfare rolls racial demographics changed drastically. The majority of welfare recipients still remained white and most black women recipients continued to work.
Starting in 1962, the Department of Health and Human Services allowed state-specific exemptions as long as the change was "in the spirit of AFDC" in order to allow some experimentation. By 1996 spending was $24 billion per year. When adjusted for inflation, the highest spending was in 1976, which exceeded 1996 spending by about 8%.
Peter Edelman, an assistant secretary in the Department of Health and Human Services, resigned from the Clinton administration in protest of Clinton signing the Personal Responsibility and Work Opportunity Act, which he called, "The worst thing Bill Clinton has done." According to Edelman, the 1996 welfare reform law destroyed the safety net. It increased poverty, lowered income for single mothers, put people from welfare into homeless shelters, and left states free to eliminate welfare entirely. It moved mothers and children from welfare to work, but many of them aren't making enough to survive. Many of them were pushed off welfare rolls because they didn't show up for an appointment, when they had no transportation to get to the appointment, or weren't informed about the appointment, said Edelman.