WRP Incentives Only was one of the demonstration projects made possible by Section 1115 waivers to the rules in effect at the time for the Aid to Families with Dependent Children (AFDC) program. These Section 1115 waivers allowed states to test new approaches to advance the objectives of the AFDC program.
WRP Incentives Only provided financial incentives to encourage and reward work. First, WRP Incentives Only allowed participants to earn more and have more of certain assets. All WRP Incentives Only participants were subject to these rule changes upon entry into the program. Next, families that transitioned from welfare to work were eligible for expanded support from Medicaid and transitional child care assistance. AFDC applicants and current recipients were eligible for WRP Incentives Only. WRP Incentives Only did not place a time limit on receipt of cash assistance for participants.
While the WRP Incentives Only program was implemented in all 12 of Vermont's welfare districts, the study focused on 6 of these regions. The evaluation of the WRP Incentives Only also tested the effectiveness of a variation of the WRP that combined work incentives with a work requirement, and it evaluated the effectiveness of WRP Incentives Only compared with the variation of WRP that included a work requirement.
WRP Incentives Only provided financial incentives to work and supportive services for single parents and for two-parent families with a disabled or unemployed parent receiving cash assistance. The goal of WRP Incentives Only was to encourage employment and reduce reliance on welfare.