Where Does Money For Welfare Come From?

There are a number of welfare programs that provide financial assistance to those who are in need. Those who live under the minimum level of accepted means as defined by each state may be eligible to receive welfare in order to pay for bare essentials such as food and housing along with unemployment. There are many umbrella programs under welfare which people may or may not qualify for, such as child care, child support, medical assistance, and assistance with getting food.
Funding for the Program
Without help from the taxpayers, welfare programs could not exist. The fact is that those who pay taxes are responsible for supporting the welfare program and all of its umbrella programs. Money is taken out of the paychecks that people throughout the country receive with some of it going towards welfare programs to help those who are in need. Although sometimes private companies donate to welfare programs, the majority of the funding comes from the taxes that American workers pay.
Where Does the Money Go?
Once the tax money for welfare programs is collected, it goes into the individual state’s trust fund which is where it stays until it is distributed to those who are in need of unemployment money as well as other forms of financial assistance.
How it is Distributed
Each year the federal government distributes funds for state welfare programs as they see fit, using a wide variety of criteria to choose which places get a certain amount for this program. The fact is that the welfare program as a whole could not exist unless both state and federal governments did not participate on some level. Congress prepares an annual budget for all government spending, including that which goes to welfare programs.
Who Receives Welfare Assistance?
Those who are determined to be at a certain economic level can qualify for welfare assistance, though there are a number of umbrella programs for those with more specific economic needs such as child care or food assistance. There is an application process which must be followed in order to successfully qualify for these individual programs. The criteria which is used to give people welfare assistance varies from state to state, depending on the pre-defined “minimum level of means” which is accepted; those who fall under this level are usually eligible to receive help through the welfare program.
Can These Funds Ever Run Out? What happens if they do?
The total amount of money in the trust for each state fluctuates naturally due to unemployment rates. Those times when not as many people are collecting these benefits and there are more people paying unemployment taxes, a surplus is created in the trust for these states. On the opposite end of the spectrum, during times of extremely high unemployment, money in the trust can in fact run out. In the event that this happens, the government loans money to each of the states that are in need so they will be able to continue distributing these benefits to people who are in need of them.
Statistics
Those who are eligible for certain welfare programs usually do not stay on them long-term; in fact fewer than 20 percent of those who receive assistance from these programs stay on them for a period of time longer than seven months. Around 20 more percent of people who get welfare end up staying on it for anywhere from one to two years total. About 27 percent of people stay on welfare for a period of up to five years. Another twenty percent of people stay on welfare programs for a period of time which exceeds five years.
If you receive welfare there should be restrictions if your average tax payer has to take a drug test in order to receive a job why dont people on welfare take a drug test to. Workers all over the country pay taxes the hard earned money goes to people, who sit at home and do nothing. Welfare is for leaches who are to lazy to get a job.
I recently fell on hard times and have been looking for a job for 3 months. I’ve just qualified for welfare. I spend 8 hours a day looking for work. Some lazy leach huh?
Good for u. Times are hard. So many hrs in the day. I believe u are doin the best u can…don’t worry somethin will turn up
seriously??? Try telling my disabled daughter that her mother who could not work due to her serious illness is a leach. Thank god she is doing better and is older so I can now work. But there were many years that I couldn’t because I HAD to stay home and nurse her or else she would have died. And of course her father ran and wouldn’t pay a penny of child support (but I guess that’s ok right) Oh but wait thats right your probaly a republican and your aginst abortion but not for taking care of the child once it’s born. Maybe I should have just killed her so the 5 cents that gets taken out of your paycheck didn’t go to helping take care of her. This is America we are suppose to take care of our fellow cit we are suppose to be united but we are not. We are a country of greed that couldn’t care less for our next door neighbor as long as we’re ok. Pathetic.
WOAH!!!! There, how dare you attack the Republican party just because of someone’s comment, then go to abortion and talking about killing children. You are acting more so petty than comment the other person said. I am not affiliated with either party-I only vote for whomever the best person is for our country. I am mostly conservative however, I have voted Dem a couple times. I don’t believe in abortion, that is your choice UNLESS you use it as a form of contraception-then its murder. Now that said, there are a lot of people on lifetime welfare which I think is where the original post came from (hopefully). To those who use it only like the previous post said when she lost her job I imagine that was not the ‘target’ people that the poster was speaking about. I am a military mother, with a deployed husband AND a medical special needs baby who I had to quit my job to take care of so I DO know how that goes. We have had times were we couldn’t afford even heat so we had blankets next to our stove to stay warm, so I HAVE been there. Instead of infighting (between US and US being Americans) we need to fight to keep our funding & monies in the US to help US citizens like yourselves instead of sending them to terrorist countries for their aid etc. Look at the riots in Egypt who we give annually 1.4BILLION dollars to in aid, killing Americans. Instead of fighting each other lets fight the lawmakers who give all our money to other countries instead of its citizens who really need it. There are many 3rd world places right here in the US. Check out an Indian Reservation (not the 1% of those that are doing well). Personally I think welfare and all its umbrella programs should use a pay into/payback system to weed out all those ‘lifers’. You pay in you get the moneys what you have paid in. If for some reason there were extenuating circumstances where you have not paid in, you must pay it back when you are working again. Now people…welfare is different than unemployment which if you are laid off you are eligible for and should use. Please stop the name calling people, it makes you look petty and uneducated which as Americans we shouldn’t be.
Do you realize in your rant you accepted zero responsibility? You got with the
loser and had kid with him. I don’t blame him for leaving your ass. Stop being a drain on
society. it’s funny how everyone else is greedy accept the person taking the handout.
Welfare was never intended to be a way of life. Unfortunately there are plenty of people who exploit the system. For some reason there is a mentality floating around out there that they are entitled to have children regardless of whether or not they can provide for them. The strategy becomes collecting welfare along with subsidized or free housing and not marrying. That way a couple with three children can collect and niether of them have to get a job. The father just never officially lives in the apartment so the system sees it as a mother living alone with her three children with no support.
Another strategy has become grandparents “taking custody”, not adopting, their grandchildren. I know someone who has done this. They went from being on welfare with their children to then taking custody of those childrens children in order to keep the welfare money and housing subsidy coming in. It works great for those young parents who want to take no responsibility for the children they had.
So long as the programs exist and as long as people are still rewarded for being irresponsible and putting themselves into poverty instead of getting a job and waiting to have kids when they can support them, these issues will never go away. It’s time for the money to go to the people who are in need BY NO FAULT OF THEIR OWN and to stop handing out taxpayers money to free loaders who have meticulously figured out ways to work the system.
Defeat the lifers-yes they are out there and teach their children to become lifers– had several high school students comment that they don’t need education because they will collect ‘a check’ when they turn 18!!!
Break the cycle:
You have one child-okay, we will help,not happily, but we will help.
You have another- we cut you and your family off completely from any and all assistance!
If you are physically able to go through the motions of reproducing, then you are definitely physically able to go to work or grow your own food or work for trade if unemployable!
I am fed up with young unemployed adults announcing they are expecting and actually expecting me to be happy about supporting yet another welfare recipient! Please oh please do not expect a baby shower gift from me!
Also, why is it that I must repay student loans when criminals, congressional children, and free-loaders get a free education?!! Currently, my daughter and I both work, attend school, and struggle to meet tuition/student loan payments!!!!!
Also, why must we continue to pay polictians after they leave office? Nobody will pay me after I retire and moreover, my own tax dollars that I paid into the corrupt system will not even be available to me!
I am so ready to guit working to support others, take my registerd gun, move to an isolated island that the government cannot control, invite only those who are willing to work the land to support themselves and their families, and rotate border patrol!! Oh wait….does this sound similar to Columbus’ quest!?
Actually they put me through a work first program & my kids through daycre. I was able to do some hrs there, take an exam followed by a course & got my license to work with children in daycares…I am now a working mother with no need to ever go back. I own a 3bedroom apartment & a cute honda. Leach much? I guess the issue u have with us is the fact that u need a drug test??? Get off ur high horse & quit the crack loser. Btw they’re there to give u ‘support’ to push u to do better for u & ur family. They don’t put us down so wat gives u the right to? Pls don’t respond back. Ur comment is not necessary…I’m just glad I’m raising my kids not to be ignorant like u. Good day.
Joe, You should have been able to find a job by the time im posting this , if you are still on welfare though, i consider you a leech.
Your a moron Adam, Did you read the article or are you to illiterate. I bet you are not this hyped up over corporate welfare which cost taxpayers far more than government welfare. Brooke they have tried drug testing in Florida and it cost the state more to test thatn what they saved. are you slightly angry that after 10 yeRs Congress gets full retirement, yes full pay and free healthcare what private company offers this? This is tax payer money why are you not enraged by this?
Trust me we are all a serious illness away from being on welfare. Unless you have loads of cash saved up or a mommy and daddy that can help you. If you get cancer your screwed. I knew a multi millionaire, his wife got cancer. He did everything for her because he loved her so much he didn’t want her to die. Well guess what he is now homeless and living on a park bench becuse he went bust paying for all her treatment. Things like that shouldn’t happen in a country that is so rich. Our elderly should not have to decide between eating and buying their life saving meds. But it’s because of people like you that that will never change. We are no longer the united states, we are the greedy states. I understand there are people who take advantage of things but that’s with everything in life. Get over it there are more people who need the help. not everyone can be rich other wise who’s gonna flip your burger? Not some rich person that’s for sure
Welfare recipients fall into two classes: those who need it and can justify their need vs. those who are gaming the system. Those who are gaming the system do so freely because there is no ongoing control oversight at either the federal or state level. Many recipients earn monies “on the side” and never report it. It is also possible to be a recipient in multiple states, with no state having knowledge of another state in the mix. In brief, once in the system the system makes no attempt to either control abuse: fraud or otherwise. This robs those who need it and could be receiving higher benefits towards necessities.
It’s important to think about the future, also. Welfare will be trimmed one way or another in the future. When it occurs and a recipient has spent idle time rather than taking positive steps now to insure their future, the situation will become worse. Where training is offered, take advantage of it. No one can predict the future but you can plan for it and should do so because the economy will improve; thus, don’t put yourself in a position of being left behind or, worse still, cutoff. What will happen is this: when the economy improves and the unemployment level is stable, the welfare program will take dead aim at those on welfare who have been on welfare an extended period of time and proceed to decline further coverage, unless the recipient can fully justify staying in the system. The monies they save by “clearing the rolls” stays in the treasury for future downturns. So be wise, make plans now. Remember that a journey of a thousand miles begins with the first step !
Work with every ounce of strength to get off welfare and rebuild your life. Be self-sufficient and depend on no one.
I know this will be perceived as naive by most, but I assure you it is both economically and socially sound. If people – you and me – supported our local charities, community centers, food banks, churches, etc. and they did their job, welfare would be unnecessary. Government shouldn’t have to take money out of your pay check and feed it into a poorly overseen bureaucracy. But people have become so greedy that we spend every dime that comes in. How much do you give away – and I’m not talking clothes and furniture you don’t want anyways – to help out? How much time do you give to make sure the needy are provided for? People are the answer, not government. But we have to break out of the greed that has taken hold of our society. Someone mentioned corporate greed. You, too, are right. Too big to fail is a joke. Giving a mismanaged company more money they don’t earn is like giving an alcoholic the keys to the liquor cabinet. Republicans and democrats can’t seem to get away from using OUR MONEY to make themselves look better in some voter block’s eyes. You should seriously check out the Libertarian Party. I’m not kidding, check it out.
Nate, I agree with you on several of your points, I will get to those in just a moment. I would like to start by saying that I am also a welfare recipient. I receive Cash Assistance and Food Stamps, as well as medical care for my son, Seth, and myself. I just started getting these services on December 2, 2012. I consider myself two things because of this: A young person with a child that for which I would do anything needed to provide for him and a leech. I am fully capable (physically and mentally) of working, have been [actively] searching for a job for more than a year now yet still have not been able to find one. Now, I have not been searching in a specific field even though I am certified in many aspects of a certain trade. I have looked for day care work (my chosen profession), retail stores, serving positions at restaurants, even as a crew member at fast food places. I’m not going to make any excuse for why I can’t find anyone to hire me, I know the answer. I messed around with jobs too much as a teenager and have an incredibly terrible job history; My fault, I will never deny that. However, I am trying to get my life back on track and be the adult and parent I would like to see my son grow up to be.
With all of that said, I will admit I do feel like a leech. I do not, in any sense, enjoy getting something for nothing. I hate the fact that as of right now, I FEEL as though I have no other option. I fully understand that that is not the case but have any of you ever felt like you are at your worst? I know I have before and I feel that way now. What I look to though is the fact the I rose above my obstacles and over came them before, why not now? Sometimes we have to accept things we do not like or want.
Now, back to Nate. I agree with the idea that people are the answer. All human beings, not just the individuals in this country, need to learn compassion and charity. No one says you have to give 50 or even 40% of a paycheck to charity. But what about time? Time is the best thing any one person can offer another person in need. At the end of the day, who do you see, hear, and speak to more in person: Politicians, public figures, and government officials? Or your friends, families, neighbors or even just people on the near-by park bench? Think about that. If you can honestly answer that question with answer number one, then maybe you have a right to judge and lump all welfare recipients together and say we are all lazy and just don’t want to find work.
Also Nate, you are correct (in my opinion) about the greediness of our society. Everyone, no matter how you look at it, everyone is greedy. Did anyone here ever complain or worry about not being able to pay a cable bill or cell phone bill? I have and that is greed. Why do we need cable, cell phones, etc.? They are things that have BECOME necessary in life but are they really? Why do we all place such high value on possessions and not the quality of life for our fellow man?
does anyone know what the total cost of welfare, unemployment compinsation and all the rest of the gov handouts is….anyone,..? Well it aint but a few millon dollars. Do you know what 2.3 trillion dollars is…well its the exact amount that on 9/10/2001 (thats one day before 9/11 you remmember the
day the world trade center and the pentagone were sacrificed) donald rumsfeild went on national television and told the world that he could not account for that money, 2.3 trillion. and just because I think you should know.weather you want to or not.the only chance we had to figare out just where that money went…was on computers at the pentagon that just so happened to be in the path of the alleaged airliner and were blown up allong with the accountants that were working with them…amazing….what a coincidence wouldnt you say….the truth is that the federal goverment has been robbing you all blind…..for years And I for one refuse to be their slave.
Taxpayers pay for welfare…bullshit…the money comes from the fed reserve…its printed up out of thin air, all they want, when ever they want…and you my fellow citizen…are paying the interest on that money. that is so high you will never ever pay it all back…but your going to bitch at the poor the homeless, the unemplyed blame them…..you are so brain washed….WAKE UP