The Supreme Court case Eloise Anderson, Director, California Department of Social Services, et al. v. Verna Edwards, etc., et al., 1994 revolved around the issue of whether federal law required states to provide Aid to Families with Dependent Children (AFDC) benefits for children living with unrelated caregivers when their parents were deceased or incapacitated. The respondents argued that they were entitled to AFDC benefits under Section 406(a)(2)(B) of the Social Security Act because they lived in homes maintained by unrelated adults who assumed primary responsibility for their care due to parental incapacity or death. However, the petitioners contended that these children did not qualify as "dependent" under state and federal laws since they weren't living with relatives as defined by those statutes. In a unanimous decision delivered by Justice Sandra Day O'Connor on behalf of all nine justices, the court ruled against Edwards and her co-respondents stating that nothing in Section 406(a)(2)(B) suggested Congress intended it should be interpreted so broadly as to include non-relative caregivers within its scope.

In the dissenting opinion for Eloise Anderson, Director, California Department of Social Services v. Verna Edwards et al., Justice Blackmun argued that the majority's decision to uphold a California law reducing Aid to Families with Dependent Children (AFDC) benefits was inconsistent with federal requirements and undermined Congress' intent in establishing AFDC. He contended that by allowing states to reduce aid without considering individual circumstances or needs, it contradicted the purpose of providing assistance based on need as mandated by federal law. Furthermore, he expressed concern about potential harm caused by reduced benefits on children who are already living in poverty. The justice also criticized the majority's interpretation of "assistance," arguing they ignored its broader meaning within social welfare context which includes not just cash payments but services aimed at helping families achieve self-sufficiency.