Despite an ongoing need to provide social services to families, the elderly, and the disabled, federal funding for the Social Services Block Grant (SSBG) has been cut dramatically over the past few years, indicating a weakening of the historic state-federal partnership to serve needy Americans. In 1996, as part of the historic welfare reform agreement, Congress agreed to provide the states $2.38 billion each year for SSBG. Since that time, funding has been chipped away little by little. This year, SSBG is funded at $1.725 billion.
NGA’s Position
The nation’s Governors have consistently supported the broad flexibility of the SSBG and are adamantly opposed to cuts in federal funding for the program. Governors believe that funding for SSBG is among the most valuable federal investment that can be made for the nation’s most vulnerable population.
Further cuts will be difficult for state and local governments to absorb and will cause a disruption in the delivery of the most critical human services. Governors believe that funding for SSBG should be restored to $2.38 billion, and transferability should be permanently restored to 10 percent, the levels that were agreed to as part of the 1996 welfare reform law.
In 1996, Governors reluctantly agreed to a slight reduction in funding for SSBG, from $2.8 billion to $2.38 billion, with the understanding that funding would remain at $2.38 billion through fiscal 2002, and then return to $2.8 billion. However, the federal government has consistently broken that promise. The nation’s Governors strongly urge Congress and the administration to reject the proposed cuts and to restore funding and flexibility to the program.
