Kennedy Welfare Reform Plan
Sen. Edward M. Kennedy (D-Mass.) proposed legislation today that would reform the welfare system by paying bonuses to states which train and find jobs for long-term welfare recipients.
Kennedy, chairman of the Senate Labor and Human Resources Committee, said the bonuses would be based on federal savings produced by state efforts. States would get 75% of the federal benefits that would otherwise go to the welfare recipient, but not until the recipient has been in a job for a year. The state would get 50% of the welfare payment in the second year of work and 25% in the third year.