Administration Approves Waivers to Welfare Rules in Four States

Days before President Clinton is expected to sign a bill overhauling the welfare system, his administration granted waivers to four states allowing them to implement their own welfare rules.

New waivers were approved for Indiana, Maryland, Minnesota and Hawaii, the Health and Human Services Department announced Friday. Forty-three states now have waivers.

Under the massive welfare overhaul Clinton is expected to sign next week, states will not need federal permission to write their own rules. But there will be restrictions, such as a requirement that recipients work after two years and a lifetime limit of five years on benefits.

States operating under waivers approved before the bill is signed will be allowed to continue to use their existing rules, even if they are at odds with the new federal plan, said HHS spokesman Michael Kharfen.

A handful of other waivers may be approved before Clinton signs the bill, including plans in Idaho and the District of Columbia, Kharfen said. Waivers approved Friday include:

* Indiana: Limits welfare benefits to two years, with exceptions. Benefits can continue longer if recipients work or participate in other programs but are unable to find work.

* Maryland: Extends a two-county pilot program to the entire state. Able-bodied recipients must look for a job. Recipients can earn more outside income before their welfare checks are decreased.

* Minnesota: Creates a two-county program to assign new applicants to one of three employment tracks. Also, a statewide program allows parents to earn more outside income before benefits are decreased.

* Hawaii: Limits benefits to five years for families with an employable adult, with some exceptions. Allows parents to earn more outside income before benefits are decreased.