Article: New Hope program loses $2.9 million in funding Federal welfare-reform gives block grants to state instead

Milwaukee's New Hope anti-poverty experiment is forced to live up to its name after learning that an estimated $2.9 million of its federal funding has been negated by the new federal welfare law.

"It's a serious situation, but we're very confident that we're going to resolve it," said Julie Kerksick, associate director of the public-private venture to learn how to help low-income families become self-sufficient and escape poverty.

The money was shifted from New Hope to the state Oct. 1 because the new law converted funds for such projects into block grants for states to spend as they see fit. In the meantime, New Hope plans to ask its private donors who were expected to contribute $1.8 ...

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