Unintended Consequences: The Impact of Welfare Reform in the United States on NGOs

Abstract

The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 dramatically transformed the structure and goals of the public welfare system in the United States. The vast body of research and evaluation generated by the 1996 welfare reforms largely overlooked nongovernmental organizations (NGOs) despite their substantial historical and contemporary involvement in the delivery of social services to low-income populations. Therefore, this paper presents a unique assessment of PRWORA’s implications based on the perspective of 90 social service NGOs operating in the Detroit metropolitan area. Examination of their services, staffing, budgets, and clients reveals many changes experienced by NGOs between 1996 and 2000 related to the welfare reforms. Overall, the findings suggest an increased role for social service NGOs in the “public” welfare system as well as concerns regarding their capacity to adequately fulfill this growing responsibility in the future.