Definition of Welfare – What is included or excluded?
The definition of welfare includes government programs to support low-income Americans. The programs provide a safety net to individuals and families to protect them from poverty. There are 13 programs that provide benefits for basic necessities such as food and housing. Welfare also includes the Medicaid Program with provides health care to low-income Americans. The common element to all the programs is that they are means-tested - in order to qualify for benefits the individuals and families must have income from jobs or self-employment at below a defined level. Income above the means-tested level means the individual or family does not qualify for benefits. The means-tested levels are unique per program (see U.S. Welfare Programs). Also common to the Programs is that they are free to low-income Americans – there is no past contribution or taxes paid that are necessary to qualify. These two elements, means-tested and non-contributory, define the programs as welfare.
Large programs not defined as welfare
The definition of welfare does not include the programs of Social Security, Medicare or Unemployment. These programs are not means-tested - they are available to all Americans regardless of income level. The programs are also contributory in nature. To qualify Americans must have contributed to the programs through the payroll taxes they pay. Because the programs are not means-tested and are contributory, they are not considered to be Welfare Programs. See further discussion of this distinction on the Entitlements Program Page.
Narrow definition of Welfare
U.S. Welfare is sometimes narrowly referred to as the TANF program. TANF is the successor of the AFDC program which was the first Welfare Program instituted in the nation. TANF was created in the Welfare Reform act of 1996 and has been the subject of much analysis and debate ever sense. The program makes up a very small percentage of the welfare landscape today but is often discussed or reported as welfare. An example would be the reporting of welfare caseloads or the recent presidential election issue regarding welfare waivers. For more information on the program and its history see the TANF page.
Further definition of U.S. Welfare Programs – What’s in and What’s Out
SNAP is an example of a Welfare Program – it distributes a voucher for recipients to purchase food. But other governmental programs regarding food such as inspections, agricultural support or research are not included as welfare. These programs have functions other than the support of low-income Americans. Here are some examples of what is defined as welfare and what is not.
Housing vouchers for rent – Included
Public Housing – Included
FHA, Fannie Mae and Freddie Mac – Excluded
“Excess EITC”; cash paid out above taxes owed – Included
Tax credits to lessen income tax paid – Excluded
Pell Grants (college scholarships) – Included
Loans to students – Excluded
Child school lunch program – Included
Child foster care and child support enforcement – Excluded
Phone support for low-income Americans (Lifeline) – Included
Phone support for schools, libraries and rural areas - Excluded
Food Stamps or vouchers – Included
Food inspection, regulation, farm aid – Excluded
http://federalsafetynet.com/welfare-definition.html