Homeless Person - Economic Assistance

By the late 1990s, public assistance was a prominent political issue. As the government began cutting WELFARE programs, people who were homeless found it increasingly difficult to rise above the poverty level. In addition, substantial cuts to welfare programs created the possibility that more people would be forced into homelessness.

Existing public assistance programs often fail to help those who are homeless. Some programs require that recipients have temporary or permanent addresses, effectively eliminating otherwise eligible recipients. In some instances, money that could be spent providing permanent, affordable housing for people who are homeless is used to provide temporary housing in "welfare hotels." A welfare hotel is inexpensive housing that is used for temporary shelter by low-income or homeless persons. In 1995, legislation was introduced to control welfare spending and to reduce welfare dependence. (H.R. 1157, 104th Cong., 1st Sess.). The features of this legislation included discontinuing welfare benefits to certain groups and creating state demonstration projects to reduce the number of homeless families in welfare hotels.