Final answer:
The replacement of AFDC with TANF in 1996 is an example of Phase 4: Policy adoption in the policy development process, where a policy is formally enacted into law, representing a significant reform of the welfare system.
Step-by-step explanation:
The enactment of Temporary Assistance for Needy Families (TANF) in 1996, which replaced the Aid to Families with Dependent Children (AFDC), represents Phase 4: Policy adoption of the 6-phase process of policy development. This phase occurs when a policy proposal is enacted into law, which is exactly what happened when Congress passed, and President Bill Clinton signed, the Personal Responsibility and Work Opportunity Reconciliation Act, more commonly known as the "welfare reform act". The act transformed how welfare was administered in the U.S., setting new requirements such as work requirements for recipients and a five-year lifetime limit on benefits.
Under TANF, states received block grants from the federal government which allowed for greater autonomy in how welfare services would be provided, unlike the previous AFDC program which entitled recipients to benefits and defined benefit levels nationally. By adopting TANF, the government significantly reformed the welfare system to focus on work participation and time-limited assistance with the intent to encourage self-sufficiency amongst recipients.