Trump Issues Executive Order Calling for Safety Net Program Work Requirements

Key Points:

• President Trump directs federal agencies to strengthen existing work requirements in programs that benefit low-income persons and look for other safety net programs where work requirements can be imposed.
• The Executive Order continues earlier efforts to impose work requirements in Medicaid, Food Stamps and affordable housing programs. Congress rejected many of these proposals in the FY 2018 spending bill.
• New work requirements place extra burdens on low-income households and do not have a good record of moving people out of poverty.
• Some work requirement proposals need Congressional action, while others can be done through the federal regulatory process. Low-income renters can voice their concerns to Members of Congress when legislation or new regulations are proposed.

President Trump issued an Executive Order on Tuesday that requires several federal agencies to strengthen existing work requirements for programs that benefit low-income households. It also requires these agencies to examine social welfare programs that do not have work requirements and propose them if appropriate.

This Executive Order places new obstacles in the path of low-income renters trying to find affordable housing, pay for food and cover medical bills. It could affect affordable housing programs, Medicaid, Food Stamps and other programs that benefit low-income people. Although Congress rejected work requirement proposals for HUD when it passed the FY 2018 funding bill, the Trump Administration continues trying to promote work requirements across government through administrative changes.

The Executive Order states that work requirements help federal programs promote self-sufficiency, well-being and economic mobility for low-income beneficiaries. It requires a report in 90 days from the Secretaries of the Treasury, Agriculture, Commerce, Labor, Health and Human Services, Housing and Urban Development (HUD), Transportation and Education. The reports will review all programs that currently have work requirements and propose ways to make them stricter and strengthen enforcement.

The reports will also examine safety net programs that do not have work requirements and determine if they can be imposed. In addition, the reports must examine how to improve state, local and private sector involvement in programs that benefit low-income persons, to reduce federal expenditures. The Secretaries must propose policy and regulatory changes that can be done administratively, as well as those that need action by Congress. The agencies must begin implementing the administrative changes not less than 90 days after the reports are submitted to the Office of Management and Budget for review.

This Executive Order is consistent with the Trump Administration’s efforts to impose work requirements in large programs that help low-income residents. President Trump’s FY 2018 and FY 2019 budgets both proposed that Congress authorize HUD to require work from those who receive federal housing assistance, as well as increase tenant rents. Public Housing Authorities (PHAs) could impose work requirements of up to 32 hours per week, with seniors and disabled tenants exempt. The Trump Administration has allowed states to seek waivers that allow them to impose work requirements on Medicaid recipients. It has also proposed rules that will make work requirements stricter for those receiving SNAP benefits (commonly known as food stamps).

Work requirements place extra burdens on low-income households that restrict access to the programs they need to become self-sufficient. In terms of affordable housing, if families do not have stable housing, they cannot maintain jobs, children’s education is disrupted and they can be at risk of homelessness. Work requirements are also costly, shifting funds away from direct rental assistance to oversee new rules that affect very few receiving federal housing assistance. Among those benefiting from HUD-assisted programs in 2016, 89% were elderly, disabled or already working at low-wage jobs. Work requirements have been shown to push families out of support programs but do not have a good record moving people out of poverty.

The Trump Administration’s push for more work requirements comes in the face of huge affordable housing cuts proposed in its FY 2019 budget. Congress rejected the Administration’s efforts to authorize work requirements in its FY 2018 appropriations bill. Congress is now considering President Trump’s FY 2019 budget proposal, which includes the same request to authorize work requirements and rent increases for tenants receiving federal housing assistance. You can see how the Trump budget cuts would affect affordable housing in your area here.

Until the Secretaries submit their work requirement reports, we will not know exactly what administrative and legislative changes they will propose. Low-income renters worried about the new work requirements will have some avenues to voice their concerns. Some proposals will require Congressional action. When these amendments are debated in Congress, low-income renters can let their Senators and Representative know how they will be affected. Many of the administrative changes that will make work requirements stricter require changes in federal regulations. These proposals must be available for public comment before they can take effect. You can also let your members of Congress know how you feel about proposed regulations once they are published in the Federal Register.