Means-Tested Programs: An Overview, Problems, and Issues

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Report Type	Reports and Testimonies
Report Date	Feb. 7, 1995
Report No.	T-HEHS-95-76
Subject	Administrative costs Cost control Disadvantaged persons Food programs for children Funds management Intergovernmental fiscal relations Medicaid Program abuses Public assistance programs Welfare recipients Supplemental security income AFDC Aid to Families with Dependent Children Program Child Care and Development Block Grant Community Services Block Grant Dept. of Education Stafford Student Loan Program Earned Income Tax Credit EIC

Summary:

Nearly 80 means-tested programs have been created over the years for low-income people. In fiscal year 1992, the federal government spent about $208 billion on these programs to meet the needs of poor Americans of all ages. The many means-tested programs are costly and difficult to administer. On the one hand, the programs sometimes overlap one another; on the other hand, they are often so narrowly focused that service gaps hinder clients. GAO notes that although advanced computer technology is essential to the programs operating efficiently, it is not being effectively developed or used. Due to their size and complexity, many of these programs are vulnerable to waste, fraud, and abuse. Moreover, the welfare system is often difficult for clients to use effectively. Finally, administrators have not articulated clear goals and objectives for some programs and have not collected data on how well the programs are working.

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Means-Tested Programs: An Overview, Problems, and Issues