Welfare began in America as state-run poor relief in the 1600s, but the federal welfare system most people know today started during the Great Depression in the 1930s.

The first major federal welfare program was Aid to Dependent Children (ADC), created in 1935 as part of the Social Security Act. It gave money to states to help families with children whose breadwinner had died, abandoned the family, or was unable to work. Before 1935, welfare was handled entirely by states, counties, and charities — there was no national system.

The Social Security Act also created Old Age information (for people over 65 who had no savings) and Aid to the Blind. These three programs formed the foundation of what became the modern welfare system. Over the next 80 years, Congress added programs, changed may be able to access rules, and renamed existing ones, but the basic structure traces back to 1935.

Key Takeaways

  • The federal welfare system began in 1935 with the Social Security Act, which created Aid to Dependent Children and information for elderly and blind people.
  • Before 1935, welfare was entirely a state and local responsibility, with no federal involvement or funding.
  • Aid to Dependent Children evolved into what is now called Temporary information for Needy Families (TANF) in 1996.
  • The 1960s added Medicaid and food stamps (now SNAP), which expanded the federal welfare system beyond cash payments.

What Welfare Looked Like Before 1935

In colonial America and the early United States, poor relief was the job of local towns and churches. If you had no money and no family to support you, your town was legally responsible for keeping you alive — but only if you were born there or had lived there long enough to gain "settlement." People without settlement could be forced to leave.

By the 1800s, most states and counties ran poorhouses (also called almshouses) where poor, elderly, disabled, and homeless people lived in exchange for work. Conditions were often harsh. Charities and religious organizations also provided food and shelter, but there was no may provide of help and no federal money involved.

The Great Depression of the 1930s overwhelmed this system. Millions of people lost jobs and savings at once. Local charities ran out of money. States and cities could not afford to help everyone. President Franklin D. Roosevelt's administration created federal programs to respond to the crisis, and some of those programs became permanent.

The Social Security Act of 1935 and the Start of Federal Welfare

Aid to Dependent Children (ADC) was the welfare program most people think of when they hear "welfare." It gave federal money to states, which then gave cash to mothers (almost always) who were raising children alone because the father had died, left, or could not work. The program assumed one parent — usually the mother — would stay home to care for the children rather than work.

ADC was not the only welfare program in the 1935 Social Security Act. Old Age information gave money to people over 65 who had no income and no family to support them. Aid to the Blind gave money to blind people of any age. These three programs were called "categorical information" because each one was for a specific category of people.

The federal government did not give the money directly to poor people. Instead, it gave money to states, and states decided how much to give each person and who counted as poor enough to receive help. This meant the amount of money you got depended on which state you lived in — a pattern that continues today in programs like TANF and Medicaid.

How Welfare Changed From the 1950s Through the 1990s

In 1950, Congress renamed Aid to Dependent Children to Aid to Families with Dependent Children (AFDC) and expanded it to include the caregiver (usually the mother) as a person who could receive money. Before 1950, only the children got cash; the parent got nothing.

The 1960s brought major additions to the welfare system. Medicaid started in 1965 to pay for medical care for low-income people. Food Stamps (now called SNAP, the Supplemental Nutrition information Program) started in 1964 as a pilot program and became permanent in 1974. These programs meant welfare was no longer just cash — it now included health insurance and food money.

By the 1980s and 1990s, AFDC had become controversial. Critics said it discouraged work and created dependency. In 1996, Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act, which replaced AFDC with Temporary information for Needy Families (TANF). TANF added time limits (most people could receive help for no more than five years in their lifetime) and work requirements (most adults had to work or look for work to get cash).

Welfare Programs That Exist Today

The main cash welfare program today is TANF, which started in 1996. It gives money to families with children whose income is very low. Unlike AFDC, TANF has a five-year lifetime limit and requires most adults to work.

Supplemental Security Income (SSI) is a cash program for elderly people (65 and older), blind people, and disabled people with very low income. It started in 1972 and replaced the old categorical programs (Old Age information and Aid to the Blind) that began in 1935.

SNAP (food stamps) and Medicaid are the largest welfare programs by number of people served. Both started in the 1960s. SNAP helps people buy food; Medicaid pays for medical care. Unlike TANF, neither has a time limit, and Medicaid does not require work.

Why the Dates Matter for Understanding Welfare Today

Knowing when welfare programs started helps explain why they work the way they do. TANF has time limits and work requirements because it was designed in 1996 to be temporary help, not permanent support. SNAP and Medicaid have no time limits because they were designed as ongoing programs for people whose income is permanently low. SSI is for elderly and disabled people who cannot work, so it has no work requirement.

The fact that welfare started as a state-run system in 1935 also explains why the amount of money you get and the rules you follow depend on your state. The federal government sets a floor (a minimum standard), but states can give more money or have stricter rules. This variation is built into the system from the beginning.

Frequently Asked Questions

Did welfare exist before the Great Depression?

Yes, but it was not called welfare and was not federal. Towns, counties, and charities provided poor relief, and poorhouses existed in most states. The federal government had no role. The Great Depression made the old system collapse, which is why the federal government created programs in 1935.

Why did the government create welfare in 1935 instead of earlier?

The Great Depression put millions of people out of work at once — far more than local charities or state governments could help. President Roosevelt believed the federal government had to step in. Before 1935, the idea that the federal government should give money to poor people was not widely accepted.

Is TANF the same as the old welfare program?

TANF replaced the old AFDC program in 1996, but it is different. AFDC had no time limit; TANF limits most people to five years of help in their lifetime. AFDC did not require work; TANF requires most adults to work or look for work. The name changed and the rules changed.

When did food stamps start?

Food stamps started as a pilot program in 1964 and became permanent in 1974. The program is now called SNAP (Supplemental Nutrition information Program). It was added to the welfare system because Congress believed people needed help buying food, not just cash.

Why do different states give different amounts of welfare money?

The 1935 Social Security Act gave federal money to states but let states decide how much to give each person. This system continues today. The federal government sets rules and gives money, but states control the actual payment amounts, which is why a family on TANF gets different money in one state than another.