Since the mid-1960s, residents of Puerto Rico have been eligible for most of the programs that apply throughout the 50 states. About one-fourth of the commonwealth's budget is appropriated for public housing and welfare. Federal grants, transfers, and expenditures in Puerto Rico amounted to nearly one-quarter of the GNP in 1990. The school lunch program received $117.7 million in 1996.
With the enactment of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the US government has changed the form and regulations for many of its social welfare programs; most significantly, it replaces Aid to Families with Dependent Children (AFDC), an open-ended entitlement program, with Temporary Assistance for Needy Families (TANF), a limited system of assistance funded largely through federal block grants. The reform act also impacts the food stamp program, the Supplemental Security Income program, and the child nutrition program. The law took effect on 1 July 1997 and provided $16.38 billion in block grants for fiscal years 1997–2002.
Because unemployment is high and wages are low, Social Security benefits are below the US average. In 2001, benefits averaging $577 per month were paid to 677,130 residents. Island residents are not eligible for Supplemental Security Income. Weekly unemployment benefits averaged $102.82 in 1999, lower than any of the 50 states.