In 2000 about 56 percent of social welfare expenditures was dedicated to such entitlements as Social Security and Medicare. About 43 percent of social welfare spending was directed toward means-tested programs, including Medicaid and Temporary Assistance for Needy Families (TANF). This volume focuses on welfare programs that provide benefits or services to persons who are determined to be eligible based on a test of their income or "means."
The federal government accounted for about 70 percent of total means-tested spending on social welfare, while state and local governments were responsible for the remaining 30 percent of means-tested expenditures in 2000. The proportion of expenditures at the federal and state level in each category of spending was very different, however. Outlays for medical benefits, primarily Medicaid, made up nearly half (43 percent) of federal welfare spending and about three-fourths (72 percent) of state and local welfare spending. On the other hand, expenditures on food assistance accounted for a little over 10 percent of the total federal welfare spending, while only 1.7 percent of state and local welfare costs funded food assistance programs.
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