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SENATE FISCAL OFFICE ISSUE BRIEF State House Room 117  Providence, Rhode Island 02903  (401) 222-2480  www.rilin.state.ri.us/senatefinance

Rhode Island Works FEBRUARY 15, 2011 Rhode Island Works is Rhode Island’s cash assistance program. The program provides cash assistance and employment support services to enable parents with children to support their families. Rhode Island Works (RIGL 40-5.2-5) replaced the Family Independence Program in 2008. Rhode Island Works is funded through the federal Temporary Assistance to Needy Families (TANF) program. TANF was enacted in 1996, replacing the nation’s welfare program, Aid to Families with Dependent Children. As of the end of calendar year 2010, Rhode Island Works served 16,185 individuals, with an average monthly cost per person of $188.68, at a total monthly program cost of $3.1 million, all of which is federal funds. BENEFITS AND ELIGIBILITY Only families with dependent children (under the age of 18) and pregnant women are eligible for Rhode Island Works. The following table lists the monthly cash benefit and income limit for Rhode Island Works recipients, based on family size. (For families living in public or subsidized housing, the benefit is reduced by $50/month.) The benefit is reduced dollar for dollar for unearned income (such as unemployment insurance benefits). Earned income reduces the benefit by $0.50 for every dollar earned after the first $170. Table 1: Rhode Island Works monthly benefits Family size Maximum monthly benefit Earned income limit 1 $327 $824 2 $449 $1,068 3 $554 $1,278 4 $634 $1,438 5 $714 $1,598 6 $794 $1,758 7 $874 $1,918 8 $954 $2,078 For example (see table 2), a family consisting of a single mother with two children would be eligible to receive up to $554 each month, assuming she had no additional income. If the mother earns income through wages, her benefit would be reduced by $1 for every $2 she earns after the first $170: the benefit would be completely eliminated when her income reached $1,278 per month, or approximately $15,336 per year. (The federal poverty level for a family of three is $18,310.)