To the Congress of the United States:
     Few nations do more than the United States to assist their least fortunate citizens - to make certain that no child, no elderly or handicapped citizen, no family in any circumstances in any State, is left without the essential needs for a decent and healthy existence. In too few nations, I might add, are the people aware of the progressive strides this country has taken in demonstrating the humanitarian side of freedom. Our record is a proud one - and it sharply refutes those who accuse us of thinking only in the materialistic terms of cash registers and calculating machines.
     Our basic public welfare programs were enacted more than a quarter century ago. Their contribution to our national strength and, well-being in the intervening years has been remarkable.
     But the times, the conditions, the problems have changed - and the nature and objectives of our public assistance and child welfare programs must be changed, also, if they are to meet our current needs.
     The impact of these changes should not be underestimated:
     - People move more often - from the farm to the city, from urban centers to the suburbs, from the East to the West, from the South to the North and Midwest.
    - Living costs, and especially medical costs, have spiraled.
     - The pattern of our population has changed. There are more older people, more children, more young marriages, divorces, desertions and separations.
     - Our system of social insurance and related programs has grown greatly: in 1940 less than 1% of the aged were receiving monthly old age insurance benefits; today over 2/3rds of our aged are receiving these benefits. In 1940 only 21,000 children, in families where the breadwinner had died, were getting survivor insurance benefits; today such monthly benefits are being paid to about 2 million children.
     All of these changes affect the problems public welfare was intended to relieve as well as its ability to relieve it. Moreover, even the nature and causes of poverty have changed. At the time the Social Security Act established our present basic framework for public aid, the major cause of poverty was unemployment and economic depression. Today, in a year of relative prosperity and high employment, we are more concerned about the poverty that persists in the midst of abundance.
     The reasons are often more social than economic, more often subtle than simple. Some are in need because they are untrained for work - some because they cannot work, because they are too young or too old, blind or crippled. Some are in need because they are discriminated against for reasons they cannot help. Responding to their ills with scorn or suspicion is inconsistent with our moral precepts and inconsistent with their nearly universal preference to be independent. But merely responding with a "relief check" to complicated social or personal problems - such as ill health, faulty education, domestic discord, racial discrimination, or inadequate skills - is not likely to provide a lasting solution. Such a check must be supplemented, or in some cases made unnecessary, by positive services and solutions, offering the total resources of the community to meet the total needs of the family to help our less fortunate citizens help themselves.
     Public welfare, in short, must be more than a salvage operation, picking up the debris from the wreckage of human lives. Its emphasis must be directed increasingly toward prevention and rehabilitation - on reducing not only the long-range cost in budgetary terms but the long-range cost in human terms as well. Poverty weakens individuals and nations. Sounder public welfare policies will benefit the nation, its economy, its morale, and, most importantly, its people.
     Under the various titles of the Social Security Act, funds are available to help the States provide assistance and other social services to the needy, aged and blind, to the needy disabled, and to dependent children. In addition, grants are available to assist the States to expand and strengthen their programs of child welfare services. These programs are essentially State programs. But the Federal Government, by its substantial financial contribution, its leadership, and the standards it sets, bears a major responsibility. To better fulfill this responsibility, the Secretary of Health, Education, and Welfare recently introduced a number of administrative changes designed to get people off assistance and back into useful, productive roles in society.
     These changes provided for:
     - the more effective location of deserting parents;
     - an effort to reduce that proportion of persons receiving assistance through willful misrepresentation, although that proportion is only a small part of the 1.5% of persons on the rolls found to be ineligible;
     - allowing dependent children to save money for educational, employment or medical needs without having that amount deducted from their public assistance grants;
     - providing special services and safeguards to children in families of unmarried parents, in families where the father has deserted, or in homes in danger of becoming morally or physically unsuitable; and
     - an improvement in the training of personnel, the development of services and the coordination of agency efforts.
In keeping with this new emphasis, the name of the Bureau of Public Assistance has been changed to the Bureau of Family Services.
     But only so much can be done by administrative changes. New legislation is required if our State-operated programs are to be fully able to meet modern needs.

     As already mentioned, we must place more stress on services instead of relief.
     I recommend that the States be encouraged by the offer of additional Federal funds to strengthen and broaden the rehabilitative and preventive services they offer to persons who are dependent or who would otherwise become dependent. Additional Federal funds would induce and assist the States to establish or augment their rehabilitation services, strengthen their child welfare services, and add to their number of competent public welfare personnel. At the present time, the cost of these essential services is lumped with all administrative costs - routine clerical and office functions - and the Federal Government pays one-half of the total of all such costs incurred by the States.  By separating out and identifying the cost of these essential rehabilitation, social work and other service costs, and paying the States three-fourths of such services - a step I earnestly recommend for your consideration - the Federal Government will enable and encourage the States to provide more comprehensive and effective services to rehabilitate those on welfare. The existing law should also be amended to permit the use of Federal funds for utilization by the State welfare agency of specialists from other State agencies who can help mount a concerted attack on the problems of dependency.
     There are other steps we can take which will have an important effect on this effort. One of these is to expand and improve the Federal-State program of vocational rehabilitation for disabled. people. Among the 92,500 disabled men and women successfully rehabilitated into employment through this program last year were about 15,000 who had formerly been receiving public assistance. Let me repeat this figure: 15,000 people, formerly supported by the taxpayers through welfare, are now back at work as self-supporting taxpayers. Much more of this must be done - until we are restoring to employment every disabled person who can benefit from these rehabilitation services.
     The prevention of future adult poverty and dependency must begin with the care of dependent children - those who must receive public welfare by virtue of a parent's death, disability, desertion or unemployment. Our society not only refuses to leave such children hungry, cold, and devoid of opportunity - we are insistent that such children not be community liabilities throughout their lives. Yet children who grow up in deprivation, without adequate protection, may be poorly equipped to meet adult responsibilities.
     The Congress last year approved, on a temporary basis, aid for the dependent children of the unemployed as a part of the permanent Aid to Dependent Children program. This legislation also included temporary provisions for foster care where the child has been removed from his home, and an increase in Federal financial assistance to the aged, blind and disabled. The need for these temporary improvements has not abated, and their merit is clear. I recommend that these temporary provisions be made permanent.
     But children need more than aid when they are destitute. We need to improve our preventive and protective services for children as well as adults. I recommend that the present ceiling of $25,000,000 authorized for annual appropriations for grants to the States for child welfare services be gradually raised, beginning with $30,000,000 for 1963, up to $50,000,000 for the fiscal year ending June 30, 1969, and succeeding years.
     Finally, many women now on assistance rolls could obtain jobs and become self-supporting if local day care programs for their young children were available. The need for such programs for the children of working mothers has been increasing rapidly. Of the 22 million women now working, about 3 million have children under 6, and another 4½ million have school-age children between 6 and 17. Adequate care for these children during their most formative years is essential to their proper growth and training. Therefore, I recommend that the child welfare provisions of the Social Security Act be changed to authorize earmarking up to $5,000,000 of grants to the States in 1963 and $10,000,000 a year thereafter for aid in establishing local programs for the day care of young children of working mothers.

     We must find ways of returning far more of our dependent people to independence. We must find ways of returning them to a participating and productive role in the community.
     One sure way is by providing the opportunity every American cherishes to do sound and useful work. For this reason, I am recommending a change in the law to permit States to maintain with Federal financial help community work and training projects for unemployed people receiving welfare payments. Under such a program, unemployed people on welfare would be helped to retain their work skills or learn new ones; and the local community would obtain additional manpower on public projects.
     But earning one's welfare payment through required participation in a community work or training project must be an opportunity for the individual on welfare, not a penalty. Federal financial participation will be conditioned upon proof that the work will serve a useful community or public purpose, will not displace regular employees, will not impair prevailing wages and working conditions, and will be accompanied by certain basic health and safety protections. Provisions must also be made to assure appropriate arrangements for the care and protection of children during the absence from home of any parent performing work or undergoing training.
     Moreover, systematic encouragement would be given all welfare recipients to obtain vocational counseling, testing, and placement services from the United States Employment Service and to secure useful training wherever new job skills would be helpful. Close cooperative arrangements would be established with existing training and vocational education programs, and with the vocational and on-the-job training opportunities to be created under the Manpower Development and Training and Youth Employment Opportunities programs previously proposed.

     It is essential that state and local welfare agencies be staffed with enough qualified personnel to insure constructive and adequate attention to the problems of needy individuals - to take the time to help them find and hold a job - to prevent public dependency and to strive, where that is not possible, for rehabilitation - and to ascertain promptly whether any individual is receiving aid for which he does not qualify, so that aid can be promptly withdrawn.
     Unfortunately, there is an acute shortage of trained personnel in all our welfare programs. The lack of experienced social workers for programs dealing with children and their families is especially critical.
     At the present time, when States expend funds for the training of personnel for the administration of these programs, they receive Federal grants on a dollar-for-dollar basis. This arrangement has failed to produce a sufficient number of trained staff, especially social workers. I recommend, therefore, that Federal assistance to the States for training additional welfare personnel be increased; and that in addition, the Secretary of Health, Education, and Welfare be authorized to make special arrangements for the training of family welfare personnel to work with those children whose parents have deserted, whose parents are unmarried, or who have other serious problems.

     In order to make certain that welfare funds go only to needy people, the Social Security Act requires the States to take all income and resources of the applicant into consideration in determining need. Although Federal law permits, it does not require States to take into full account the full expenses individuals have in earning income. This is not consistent with equity, common sense or other Federal laws such as our tax code. It only discourages the will to earn. In order to encourage assistance recipients to find and retain employment, I therefore recommend that the Act be amended to require the States to take into account the expenses of earning income.
     Among relatives caring for dependent children are a few who do not properly handle their assistance payments - some to the extent that the well-being of the child is adversely affected. Where the State determines that a relative's ability to manage money is contrary to the welfare of the child, Federal law presently requires payments to be made to a legal guardian or representative, if Federal funds are to be used. But this general requirement may sometimes block progress in particular situations. In order to recognize the necessity for each State to make exceptions to this rule in a very limited number of cases, I recommend that the law be amended to permit Federal sharing to continue even though protective payments in behalf of children - not to exceed ½ of 1% of ADC recipients in each State - are made to other persons concerned with the welfare of the family. The States would be required to reexamine these exceptions at intervals to determine whether a more permanent arrangement such as guardianship is required.
     When first enacted, the aid to dependent children program provided for Federal sharing in assistance payments only to the child. Since 1950, there has been Federal sharing in any assistance given to one adult in the household as well as to the child or children. Inasmuch as under current law there may be two parents in homes covered by this program, one incapacitated or unemployed, I recommend in the interest of equity the extension of Federal sharing in assistance payments both to the needy relative and to his or her spouse when both are living in the home with the child.

     Under present public assistance provisions, States may impose residence requirements up to five of the last nine years for the aged, blind and disabled. Increased mobility, as previously mentioned, is a hallmark of our times. It should not operate unfairly on either an individual State or an individual family. I recommend that the Social Security Act be amended so as to provide that States receiving Federal funds not exclude any otherwise eligible persons who have been residents of the State for one year immediately preceding their application, for assistance. I also recommend that the law be amended to provide a small increase in assistance funds to those States which simplify their laws by removing all residence requirements in any of their Federally aided programs.
     In view of the changing nature of the economic and social problems of the country, the desirability of a periodic review of our public welfare programs is obvious. For that purpose I propose that the Secretary of Health, Education, and Welfare be authorized to appoint an Advisory Council on Public Welfare representing broad community interests and concerns, and such other advisory committees as he deems necessary to advise and consult with him in the administration of the Social Security Act.
     No study of the public welfare program can fail to note the difficulty of the problems faced or the need to be imaginative in dealing with them. Accordingly, I recommend that amendments be made to encourage experimental, pilot or demonstration projects that would promote the objectives of the assistance titles and help make our welfare programs more flexible and adaptable to local needs.
     The simplification and coordination of administration and operation would greatly improve the adequacy and consistency of assistance and related services. As a step in that direction, I recommend that a new title to the Social Security Act be enacted which would give to States the option of submitting a single, unified State plan combining their assistance programs for aged, blind and disabled, and their medical assistance programs for the aged, granting to such States additional Federal matching for medical payments on behalf of the blind and disabled.
     These proposed far-reaching changes - aimed at far-reaching problems - are in the public interest and in keeping with our finest traditions. The goals of our public welfare programs must be positive and constructive - to create economic and social opportunities for the less fortunate - to help them find productive, happy and independent lives. It must stress the integrity and preservation of the family unit. It must contribute to the attack on dependency, juvenile delinquency, family breakdown, illegitimacy, ill health and disability. It must reduce the incidence of these problems, prevent their occurrence and recurrence, and strengthen and protect the vulnerable in a highly competitive world.
     Unless such problems are dealt with effectively, they fester, and grow, sapping the strength of society as a whole and extending their consequences in troubled families from one generation to the next.
     The steps I recommend to you today to alleviate these problems will not come cheaply. They will cost more money when first enacted. But they will restore human dignity; and in the long run, they will save money. I have recommended in the Budget submitted for fiscal year 1963 sufficient funds to cover the extension of existing programs and the new legislation here proposed.
     Communities which have - for whatever motives - attempted to save money through ruthless and arbitrary cutbacks in their welfare rolls have found their efforts to little avail. The root problems remained.
     But communities which have tried the rehabilitative road - the road I have recommended today - have demonstrated what can be done with creative, thoughtfully conceived, and properly managed programs of prevention and social rehabilitation. In those communities, families have been restored to self-reliance, and relief rolls have been reduced.
     To strengthen our human resources - to demonstrate the compassion of free men - and in the light of our own constructive self-interest - we must bring our welfare programs up to date. I urge that the Congress do so without delay.