The program was passed on August 14, 1935 as part of the
Social Security Act of 1935 during the
New Deal reform era. It was created as a
means tested entitlement which subsidized the income of families where fathers were "deceased, absent, or unable to work". In 1961 a change in the law permitted states to extend benefits to families where the father was unemployed, a measure which 25 states eventually adopted. The words "families with" were added to the name in 1962, partly due to concern that the program's rules discouraged marriage. The
civil rights movement and the efforts of the
National Welfare Rights Organization in the 1960s expanded the scope of welfare entitlements to include black women. The welfare rolls’ racial demographics changed drastically. The majority of welfare recipients still remained white and most black female recipients continued to work. Starting in 1962, the Department of Health and Human Services allowed state-specific exemptions as long as the change was "in the spirit of AFDC" in order to allow some experimentation. By 1996 spending was $24 billion per year. When adjusted for inflation, the highest spending was in 1976, which exceeded 1996 spending by about 8%. In 1967 the federal government began requiring states to establish the paternity of children eligible for the program, and extended benefits to "unemployed male parents with a work history". The "man-in-the-house" rule was struck down in 1968 by the
Supreme Court in
King v. Smith. Thereafter, families with males in the household were eligible for benefits if they were not deemed to be actual or substitute parents, although any financial contribution on the part of the male to the family was still considered a part of the family's total income. This and other factors led to a large increase in enrollment. ==Criticism==