The End of Welfare as We Knew It

There are recurring themes in state budgeting and fiscal policy: Medicaid has grown vigorously, squeezing out spending for other programs; college tuitions have increased dramatically, partly reflecting the stagnation of state aid; states have begun to partner with the private sector to meet transportation and other infrastructure demands in the face of scarce resources; alternatives to “life without parole” and other sentencing policies have taken hold to combat the rising cost of incarceration. The theme that isn’t often raised in such discussions—but could be—is that states have nearly exited the cash assistance business.