The means test acted as a screening mechanism for determining eligibility for various forms of government assistance. The purpose was to ensure that aid was prioritized for those who were most in need. Under this test, individuals and/or households had to meet certain criteria about income and assets in order to qualify for programs such as:
1. Temporary Assistance for Needy Families (TANF): This program, originally known as Aid to Families with Dependent Children (AFDC), provided financial support to families with dependent children.
2. Supplemental Security Income (SSI): This program provided assistance to low-income elderly, blind, and disabled individuals.
3. General Assistance (GA): This program, administered by state and local governments, offered financial aid to low-income individuals who did not qualify for other forms of assistance.
To establish eligibility, applicants for these programs had to demonstrate that their income and assets fell below specified thresholds. The means test often involved:
- Assessing the total household income, including earnings, pensions, and any other sources of income
- Determining the value of the assets held by the applicant's household, such as savings, investments, and real estate (excluding an applicant's primary residence and a limited amount of personal belongings)
Individuals or households that passed the means test could receive financial assistance in the form of direct cash payments, food stamps, or housing assistance. However, those who had sufficient income or assets were denied assistance.
Over time, the means test remained a controversial element of the social safety net, as some argued that it placed unnecessary hurdles on individuals seeking support and potentially caused hardship for those in genuine need. Nevertheless, it served as a central mechanism during the Great Depression to channel resources effectively to those who were most vulnerable to poverty.