PolicyBrief
H.R. 150
119th CongressJan 3rd 2025
People CARE Act
IN COMMITTEE

The "People CARE Act" aims to reform welfare programs by streamlining operations, boosting employment, and establishing a commission to review and recommend changes to federal means-tested welfare programs, with the goal of helping individuals transition off welfare and maintain income above the poverty level. The Act also establishes expedited procedures in Congress for the Commission's recommendations.

Warren Davidson
R

Warren Davidson

Representative

OH-8

LEGISLATION

People CARE Act Aims to Overhaul Welfare: Commission to Review and Recommend Sweeping Changes

The People CARE Act (short for "People-Centered Assistance Reform Effort Act") is a new bill that sets up a special commission to completely review and suggest big changes to how federal welfare programs work. The stated goals are to make these programs more efficient, help people get off welfare and into jobs, and save taxpayer money. This isn't just a tweak; it's a potential top-to-bottom overhaul of programs that provide crucial support for low-income Americans. (Sec. 1 & 2)

Remaking the Welfare Landscape

This bill sets up an 8-member commission, the "CARE Commission," with a broad mandate to examine pretty much every federal program that provides assistance to low-income individuals and families. This includes everything from SNAP (food stamps) and Medicaid to housing assistance and job training programs. (Sec. 3 & 4) The commission is tasked with finding ways to:

  • Consolidate programs: If multiple programs do similar things, the commission can recommend merging them.
  • Cut or revamp programs: Programs deemed "unsuccessful" could be significantly changed or eliminated.
  • Bring in private companies: The commission will look at ways to use private contractors to deliver services, potentially replacing government workers.
  • Shift control to states: Some programs might be handed over to state governments to run.
  • Eliminate "Benefit Cliffs": The Commission will look to reduce the sudden loss of benefits that happens when people earn just enough to disqualify them from assistance.

Real-World Rollout

So, how could this play out? Imagine a single mom working a part-time job and getting help with childcare through a federal program. If that program gets consolidated or shifted to the state level, she might face new rules, different application processes, or even lose access to that childcare. (Sec 4.) Or, picture a family receiving food stamps. If the commission decides to contract out food stamp administration to a private company, that family might deal with a different system for getting their benefits, potentially with different customer service or eligibility checks. (Sec 4.)

It also includes programs like the Pell Grant, which helps low-income students afford college. If the commission recommends changes to this program, it could alter who qualifies for financial aid and how much they receive, making it more difficult for some to pursue higher education. (Sec. 3)

Another example: a disabled individual receiving Supplemental Security Income (SSI). The commission's review could lead to changes in eligibility criteria or benefit levels, directly impacting their income and ability to cover basic living expenses. (Sec. 3)

The bill also specifically targets "benefit cliffs." These are situations where earning a little more money can lead to a big drop in benefits, making it financially worse for people to increase their income. The commission is supposed to find ways to smooth out these cliffs, so people aren't penalized for working more. (Sec 4.)

Fast Track to Change

One of the most significant parts of this bill is how quickly it could become law. The CARE Commission has 18 months from when all members are appointed to deliver its recommendations to Congress. (Sec. 4) Then, the bill containing those recommendations gets put on a fast track, with limited debate and no amendments allowed. (Sec. 5) This means Congress has to vote on the commission's proposals as a whole package, up or down, with very little room for changes or detailed review. This raises a flag because it limits the ability of elected representatives to carefully consider how these changes might affect their constituents.

The Bottom Line

While streamlining government and helping people become self-sufficient are good goals, the People CARE Act raises some important questions. Will the focus on cost-cutting lead to reduced services for those who need them most? Will shifting control to states or private companies create inconsistencies or make it harder for people to get help? And will the fast-track process prevent Congress from fully understanding the impact of these potentially massive changes? These are crucial questions to consider as this bill moves forward.