Trends in Work Supports for Low-Income Families with Children

Trends in Work Supports for Low-Income Families with Children

Federal and state spending on work supports for low-income families grew between 2002 and 2005, with Medicaid accounting for most of the spending growth. After 2002 states spent less on child care, and federal EITC spending declined slightly as the number of employed parents decreased. Yet, food stamp spending increased as family incomes declined and program changes expanded eligibility and participation. The weaker economy also explained a large share of the increase in Medicaid spending. Differences in the design of programs and needs among families led to wide variation in the amount of support received by families across states.

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