More than 900,000 households, about 2.7 million people, would have their welfare benefits reduced or eliminated under President Reagan's proposed cuts in Aid to Families with Dependent Children, according to Secretary of Health and Human Services Richard S. Schweiker.
And about 2.6 million recipients of Supplemental Security Income (for the aged, blind and disabled) would be affected by Reagan's proposals for that program.
Schweiker's estimates came in a letter responding to questions from House Ways and Means Committee Chairman Dan Rostenkowski (D-Ill.).
There are now 3.8 million households, or about 11 million people, on AFDC.
According to the letter, 94,000 households would lose AFDC eligibility as a result of the Reagan proposals, and 150,000 households not now on welfare would not go on the rolls because of a proposed requirement for a mandatory job search before receipt of benefits. Although the letter didn't mention Medicaid, all these households would initially also lose automatic eligibility for Medicaid that goes with receipt of AFDC benefits, although some would requalify for Medicaid under special provisions for the "medically needy."
In addition, 677,000 households would have benefits reduced.
Thus, 921,000 households would have AFDC benefits eliminated or reduced. On an average of about three individuals per family, this would be about 2.7 million people.
SSI benefits now go to about 4 million people. Schweiker said about 2.6 million would have benefits reduced or eliminated under Reagan's proposals (this does not count a proposal for rounding amounts to the next lowest dollar, which would affect everyone, but for negligible amounts).
Total budgetary savings in fiscal 1983 from the AFDC cuts were estimated at $1.1 billion, and from the SSI cuts, $157 million.