CWPDP was designed to move recipients of Aid to Families with Dependent Children (AFDC) into the labor market by changing aspects of the program’s eligibility and benefit calculation.
CWPDP was one of the demonstration projects made possible by Section 1115 waivers to the rules in effect at the time for the AFDC program. These Section 1115 waivers allowed states to test new approaches to advance the objectives of the AFDC program. CWPDP introduced four changes to AFDC. First, the maximum aid payment was reduced by 8.3 percent through gradual reductions from October 1, 1992, to September 1, 1993. Second, two-parent families in which one parent was unemployed could remain eligible for AFDC even if one parent worked more than 100 hours per week. Third, the Minimum Basic Standard of Adequate Care (the benchmark level of need on which AFDC grant awards are based) increased in conjunction with California’s cost of living. Fourth, the program eliminated the time limit on earnings disregards (the amount of income not counted against monthly benefit payments). CWPDP served single-parent and two-parent families receiving AFDC. CWPDP was implemented throughout California, but the evaluation was conducted in Los Angeles County.