The Administration's "superwaiver" proposal that passed the House on May 16 as part of welfare reform (H.R. 4737) would provide cabinet secretaries with new, far-reaching authority to approve state applications to waive federal laws and regulations affecting a number of programs -- even more than earlier versions indicated.

The Administration's "superwaiver" proposal that passed the House on May 16 as part of welfare reform (H.R. 4737) would provide cabinet secretaries with new, far-reaching authority to approve state applications to waive federal laws and regulations affecting a number of programs -- even more than earlier versions indicated.

These programs include:

• job training programs under the Workforce Investment Act;
• the employment service;
• adult education programs;
• the Child Care and Development Fund;
• public housing;
• homelessness programs;
• the Temporary Assistance for Needy Families block grant;
• the Social Services Block Grant; and
• food stamps.

In spite of the relatively little attention it is getting in the press, the super-waiver represents a huge and sweeping change. These provisions have a number of serious problems that could negatively affect many low-income and other domestic programs. The super-waiver is heralded as a great step forward for "state flexibility," but it goes far beyond flexibility. It allows states, with only Executive Branch approval, and no public input, to waive program rules, including cutting benefits to one group of recipients to use the savings for another group of recipients, changing income eligibility requirements, targeting populations who are easier to serve instead of those who Congress intended to be served, and even changing the very nature of a program. While new language was added that disallows waivers to transfer money from one appropriations account to another, this addresses only a few of the concerns that have been raised, and does nothing to stop transfers of money within a program area.

The Senate must now pass its version of welfare reauthorization and then the House and Senate must reconcile the legislation in conference. Even though there is no indication that super-waiver provisions will be included in the Senate reauthorization legislation, the super-waiver is a very high priority of the President and could be added either during Senate floor debate or in conference. It is important that you let your Senators know the problems you see in the super-waiver legislation. For more information see OMB Watch's summary or this Center on Budget and Policy Priorities analysis.