Under the 1996 Welfare Reform Act, what replaces Aid to Families with Dependent Children?

• A. Universal basic income.
• B. Direct cash payments to individuals.
• C. Permanent entitlement program.
• D. Block grants to states.

Answer: (D)

The main idea is a shift from an open-ended entitlement to a capped, state-directed funding structure. The 1996 Welfare Reform Act replaced Aid to Families with Dependent Children with Temporary Assistance for Needy Families, funded as block grants to the states. This means Congress provides a fixed total amount each year, and states decide how to use it to run their welfare programs, within federal guidelines. It also introduced work requirements and time limits to reduce long-term dependence. So the replacement is block grants to states.