California May Lose 600 Million Dollar Welfare Funds
HEW warned California it may forfeit its 600 million dollar share of AFDC payments unless it promptly raises cost of living allowances for recipients. The agency cited noncompliance with 1967 directives and noted potential hearings and reductions in federal aid if California acts slowly. The issue ties to county option procedures and desegregation-linked considerations, with political implications for the Nixon era welfare reform debate.