Many social welfare programs incorrectly assume that all families share their incomes fairly. The need for a welfare state was absolute. The federal government pays the food stamps. Job Opportunities and Basic Skills. The JOBS program is funded through a cost sharing arrangement between Federal and state funds that varies by state. The Medicaid program is used by states to provide health care to low-income families with children, the elderly poor and disabled. The federal government pays the full cost of the minimum income level.