Safety net:
a safeguard against hardship or adversity
Formal understanding:
Social safety net programs are designed to help the lowest-income members of society meet their food, housing, and healthcare needs. The modern American safety net was greatly expanded under President Lyndon B. Johnson's War on Poverty, which aimed “not only to relieve the symptom of poverty, but to cure it and, above all, to prevent it.” (Johnson 1965)
Source: https://www.nber.org/system/files/working_papers/w26942/w26942.pdf
Welfare:
Government programs designed to help those experiencing economic instability; statutory procedure or social effort designed to promote the basic physical and material well-being of people in need.
Formal understanding:
The modern welfare state in the United States was begun in the depths of the Great Depression when Congress passed, and President Roosevelt signed, the Social Security Act of 1935. That act created three programs: the old-age retirement program that is often simply called “Social Security,” the Unemployment Insurance (UI) system, and the Aid to Dependent Children (ADC) program (its name was changed to Aid to Families with Dependent Children (AFDC) in 1962 and to Temporary Assistance for Needy Families (TANF) in 1996).
EITC (Earned Income Tax Credit)
a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on a recipient's income and number of children. Low-income adults with no children are eligible. For a person or couple to claim one or more persons as their qualifying child, requirements such as relationship, age, and shared residency must be met.”
Formal understanding:
“the largest means-tested cash transfer program in the United States…Eligibility for the EITC depends on total family earnings—wage earnings plus self-employment income—and the number of qualifying dependents. Qualifying dependents for EITC purposes are relatives who are under age 19 (24 for full time students) or permanently disabled, and reside with the tax filer for at least half the year”
CTC (Child Tax Credit)
A tax credit by which all but the most high-income households can pay fewer taxes or even get money back from the government, depending on how many children the household has. It provides $2,000 in tax relief per qualifying child, with up to $1,400 of that refundable.
Formal understanding:
“The CTC operates by reducing one’s tax liability by the amount of the credit for which one qualifies. It is partially refundable, meaning that a taxpayer with a CTC in excess of their tax liability may receive a refund from the Internal Revenue Service (IRS) for some or all of the excess credit amount…The amount by which the taxpayer benefits from the credit is a function of three main factors: (1) the number of qualifying children the taxpayer claims, (2) the taxpayer’s income, and (3) the taxpayer’s tax liability, absent the credit…In general, a taxpayer’s CTC is equal to $2,000 per qualifying child the taxpayer claims for the credit on their tax return. The credit is phased out for very high-income taxpayers…”
TANF (Temporary Assistance for Needy Families)
TANF is a time-limited program that helps families when parents or other relatives cannot provide for the family's basic needs. The federal government provides grants to states to run the TANF program. States carry out their own programs and decide on issues such as:
Design of the program
Type and amount of assistance payments
Range of services to be provided
Rules for determining who qualifies for benefits.
https://www.hhs.gov/answers/programs-for-families-and-children/what-is-tanf/index.html
Formal understanding:
“The Temporary Assistance for Needy Families (TANF) block grant provides federal grants to the 50 states, the District of Columbia, American Indian tribes, and the territories for a wide range of benefits, services, and activities. It is best known for helping states pay for cash welfare for needy families with children, but it funds a wide array of additional activities…States may use TANF and MOE funds in any manner “reasonably calculated” to achieve TANF’s statutory purpose. This purpose is to increase state flexibility to achieve four goals: (1) provide assistance to needy families with children so that they can live in their own homes or the homes of relatives; (2) end dependence of needy parents on government benefits through work, job preparation, and marriage; (3) reduce out-of-wedlock pregnancies; and (4) promote the formation and maintenance of two-parent families.”
https://ecommons.cornell.edu/server/api/core/bitstreams/4887406d-8ab1-4194-b62b-018feaae5874/content
Pop understanding: TANF is a welfare program where the federal government gives money to states to dole out as they wish as long as they’re helping out low-income families with children. The time families can stay on this program is limited.