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Social Services Block Grant Legislative History
Title XX of the Social Security Act
In 1981 Federal matching funds for social services and funding for social service staff training were combined into a block grant to states. Most Federal requirements were removed. This new block grant became the "Social Services Block Grant", Title XX of the Social Security Act. These changes were part of the Omnibus Budget Reconciliation Act, PL 97-35 (OBRA). The Reagan administration along with Congress took this action to obtain budget savings.
Before 1981 these Federal matching funds covered a range of human services including programs for families on AFDC, services to keep elderly adults and children out of institutions and a range of community-based programs. The 1981 act capped funding, increased state flexibility and made SSBG into an entitlement to states. Funding was set at $2.4 billion in 1982. In 1985 it was increased to $2.7 billion, a level it stayed at or near for most of the next decade until 1996.
With the passage of the welfare reform act in 1996 (PL 104-193), SSBG was changed in several ways. Funding was lowered to $2.38 billion in fiscal year 1996 through 2002. In 2003, funding was to increase back to the $2.8 billion level. PL 104-193 also allowed states to transfer up to 10 percent of their TANF block grant into SSBG. The transferred funds must be spent on children or their families whose income is at or below 200 percent of the Federal poverty level.
Despite the fact that SSBG had been cut in the 1996 and had contributed significant amounts to welfare reform's budget savings, and despite the entitlement nature of SSBG, it still became subject to the annual decisions of appropriators. For 1998 SSBG was cut to $2.299 billion.
The following year the administration proposed a 1999 budget using SSBG funding as an offset for a variety of HHS programs. The cuts were to be $1.9 and eventually $1.7 billion. Congress agreed to the reduction but used the funds to help meet the budget scoring requirements of the 1998 "Transportation Equity Act for the 21st Century"-the transportation reauthorization. That legislation reduced SSBG funding to $1.7 billion in 2001and beyond. States were limited in their ability to transfer TANF funds into SSBG to no more than 4.25 percent of their TANF grant.
Funding levels
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1977-1978
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$2.7 billion
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1979
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$2.9 billion
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1980
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$2.7 billion
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1981
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$2.99 billion
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1982
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$2.4 billion
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1983
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$2.6 billion
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1984-1985
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$2.7 billion
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1986
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$2.5 billion
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1987-1990
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$2.7 billion
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1991-1995
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$2.8 billion
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1996
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$2.38 billion
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1997
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$2.5 billion
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1998
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$2.299 billion
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1999
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$1.9 billion
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2000
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$1.775 billion
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2001
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$1.725 billion.
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States are awarded funds according population formula and can cover: adoption, case management, congregate meals, counseling, day care-adults, day care-children, education and training, employment services, family planning, Foster Care-adults, Foster Care-children, health related services, home-based services, home delivered meals, housing services, Independent and transitional living services, information and referral, legal services, pregnancy and parenting, prevention and intervention, Protective Services-adult, Protective services-children, recreation services, residential services, youth at-risk, disability services, substance abuse services, transportation. The funds are used to support state and local programs as well as non-profit programs and services. The act also specifies that states are allowed to use the funds for administration and staff training directly related to such services funded.
For more information on SSBG, please contact John Sciamanna at 703/412-3161, FAX: 703/412-2401, or e-mail: jsciamanna@cwla.org.
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