Scaling up CBOs for second‐order devolution in welfare reform

The Personal Responsibility and Work Opportunity Act of 1996 created a paradigm shift in the financing, organization, and delivery of welfare programs in the United States. The act shifted revenue and authority to states, giving them great discretion to determine the specifics of their programs. First‐order devolution, combined with time limits and work requirements, set in motion a chain of events that moved Temporary Assistance to Needy Families (TANF) recipients into the labor force and off state welfare rolls. Second‐order devolution shifted revenue and authority to community‐based organizations (CBOs) to help former recipients remain employed, advance to higher paying jobs, and move their families toward economic self‐sufficiency. Early findings from project innovations in Texas and other states raise doubts about the capacity of these organizations to achieve these goals. State funders will need to provide ongoing technical assistance and support to “scale up” the capacity of CBOs to plan, implement, and manage local innovations in welfare reform.