Working on welfare diversion.

• Position: TRENDS AND TRANSITIONS - Brief article

Some people go on public assistance because of a lack of transportation, a health emergency or the birth of a child. But welfare diversion programs that provide lump sum payments to families to help them through these events are now being offered by 28 states and the District of Columbia. The hope is that this financial help will get the family through a crisis and keep them off welfare.

If structured right, these diversion programs can also help states meet tough new work participation rates in the Deficit Reduction Act of 2006. More than half the states will find it difficult to meet the 50 percent work participation rate required in the law and so, may face penalties beginning in federal fiscal year 2009.

Participation in diversion programs don't count against time limits. So the programs can provide more time to assess barriers to employment, and time to remove those barriers without running the clock on time-limited welfare benefits. Assessment takes time--and that time...