Federal Block Grants Are Not Budget Neutral
Although President Trump has not yet proposed any specific policy plans regarding American safety net programs, he will need to build a collaborative, if not intentional, relationship with leading Republican officials such as House Speaker Paul Ryan in this policy area. Speaker Ryan’s signature interest focuses on safety net spending reform, and his 2014 Poverty Plan and his 2016 Better Way plan call for the creation of block grants: a strategy of welfare reform that we have significant experience with dating back to the 1960s. This history tells us that block grants are not budget neutral; people of color and those with low to moderate incomes are likely to be disproportionately negatively affected by block grants, and within these groups, those most affected will be single women-headed households with children.