The Administration strongly supports House passage of H.R. 4737, which will build on the success of the 1996 welfare reform in moving our nation's most vulnerable families from dependence on welfare to the dignity of work and independence. The bill would reauthorize the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, including the Temporary Assistance for Needy Families (TANF) block grant program that provides funding to States for aid to low-income families with children. The Administration is pleased that H.R. 4737 incorporates many of the components of the President's proposals to: (1) maximize self-sufficiency though work, job training, and education; (2) promote child well-being and healthy marriages; (3) encourage abstinence and prevent teen pregnancy; (4) enhance child support enforcement; (5) improve TANF program performance by States; and (6) facilitate the integration of public assistance and training programs through broadened waiver authority to States.

The Administration looks forward to continuing to work with the Congress on this important legislation to meet our shared goal of increased successes for America's neediest families, while maintaining fiscal discipline.

Pay-As-You-Go-Scoring

Any law that would reduce receipts or increase direct spending is subject to the PAYGO requirements of the Balanced Budget and Emergency Deficit Control Act (BEA) and could cause a sequester of mandatory programs in any fiscal year through 2006. The requirement to score PAYGO costs expires on September 30, 2002, and there are no discretionary caps beyond 2002. The Administration will work with Congress to ensure fiscal discipline consistent with the President's budget and a quick return to a balanced budget. The Administration will also work with Congress to ensure that any unintended sequester of spending does not occur.