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PREFACE
Excluded Children: Family Cap in a New Era draws on information compiled from research evaluations,
academic studies, and state surveys to apprise policymakers and the public of what is now known about
the efficacy and impact of the family cap. This document examines how different states have interpreted
child exclusion policies, reports on state outcomes resulting from the family cap, and considers the
ramifications of these policies in an era of welfare change.
Initiated in 1992 in New Jersey, family cap policy was originally implemented to “promote personal
responsibility” while discouraging births to families receiving cash assistance by eliminating or reducing cash
assistance traditionally available to families with newborn children. To date, 23 states have established
some type of family cap or child exclusion policy.
CLASP has collected information on all 23 states with an emphasis on the first 14 to apply for a family cap
policy waiver as of mid-1995.1 We selected this time frame because states that applied after that date have
had less of an opportunity to see implementation effects; further, beginning in August 1996 under TANF
(Temporary Aid to Needy Families), states could implement a family cap without federal approval and
without undertaking any evaluation.2 CLASP compiled evaluations, other reports and data from the original
14 states and queried the remaining states to learn the number of children subject to a cap. Excluded
Children provides a synthesis of these findings and includes a state-by-state synopsis of the evaluations
reported by the original 14 states [Appendix I]. The report also charts the number of children subject to
a cap in those states which track this information [Appendix II].3
Excluded Children chronicles the early experiences of family cap states. It is our hope that the information
provided will help to inform the ongoing debate on the relevance of family cap policy in this era of reform.
A set of other related CLASP publications are also available. Caps on Kids: Family Cap in the New
Welfare Era is a fact sheet based on the material included in Excluded Children. In addition, New
Jersey’s Family Cap Evaluation: What Do the Findings Suggest? provides highlights of the findings
released in 1998 and identifies issued raised by the new research.

INTRODUCTION
“Family cap”, also known as “child exclusion”, has entered a new era. Where some proponents once
touted this policy of denying assistance to newborn children of recipients as a “reform” of welfare policy,
the 1996 overhaul of federal welfare law now calls into question its very premise. Already, one
state—Kansas—has abandoned plans to implement a family cap because of this new welfare context. The
23 states that actually established some type of cap must now consider how to reconcile their policies in
this new era. Proponents originally contended that a limited cash grant was needed to achieve a reduction
in births by welfare recipients. In the new welfare reform era, federal assistance is not just limited: it is
eliminated for the entire family for a lifetime after 60 cumulative months of receipt. Family cap advocates
charged that women receiving welfare were having children to remain at home. Welfare reform has since
changed work expectations, requiring even mothers with very young children to seek employment. Today,
the federal safety net is time-limited, and assistance is synonymous with an expectation of working outside
the home.
While the relevance of family cap policy is called into question by the new federal welfare law, the policy
has had real consequences that have fallen hardest on the most vulnerable. In 16 states, family cap policies
have resulted in more than 83,000 children being capped; and this figure most likely significantly understates
the number of capped children in the country. Moreover, since initiation of family cap, new brain research
demonstrating that well-being during the first few years of life is essential for future growth and development
has gained attention.4 However, the family cap/child exclusion policy increases the depth of poverty
experienced by these infants and their families.
Family cap/child exclusion policies were first implemented without the benefit of research to support
proponents’ goal of reducing births among welfare recipients. Now, research is available. However,
findings from state evaluation studies suggest two alternative scenarios: the family cap fails to demonstrate
a reduction in birth rates, or the family cap reduces birth rates significantly but also increases the abortion
rate.5 In light of this unintended “perverse effect” of increasing abortions, legislation has been introduced
in Congress that would preclude federal TANF funding to those states that continue a family cap policy.6
Similarly, legislation has also been filed in New Jersey to repeal the state’s family cap policy on the same
grounds.7
Three realities—the presence of a new welfare framework, the withdrawal of traditional assistance for
newborns during a critical development phase, and conflicting results from state family cap
demonstrations—suggest the family cap policy should be viewed in a new light.


WHAT IS FAMILY CAP/CHILD EXCLUSION?
The terms “family cap” and “child exclusion” refer to restricted welfare benefits to children born to a
recipient parent. Traditionally, cash grants have increased with family size. Under the typical family cap,
however, if an additional child is conceived after the family begins to receive welfare, the welfare grant does
not increase for this family; it is the timing of childbearing that is significant rather than the number of children
in the family. Two families that both include three children could receive different benefit amounts
depending on when the children were born: under typical family cap policy, the family with a third child
conceived while the parent was receiving aid would receive less money than the family whose three children
were conceived before the family applied for assistance.8 In other words, newborn children are excluded
from the traditional, incremental grant increase.




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Note added at 4 hrs 44 mins (2004-04-06 15:30:21 GMT)
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