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Better results for kids and families through research-informed policy

Temporary Assistance to Needy Families

The TANF block grant gives states broad flexibility to help low-income families by: providing assistance so that children may be cared for in their own homes or in the homes of relatives; promoting job preparation, work, and marriage; preventing and reducing the incidence of out-of-wedlock pregnancies; and encouraging the formation and maintenance of two-parent families.

What Can Policymakers Do?

  • Access the TANF Contingency Fund.  The federal economic stimulus legislation (American Recovery and Reinvestment Act of 2009) created a new $5 billion Emergency Contingency Fund to reimburse states for 80 percent of increased FY2009 and 2010 expenditures for cash assistance caseloads, non-recurring short term benefits, and subsidized employment.  States that demonstrate expenditure increases over 2007 or 2008 can claim reimbursement without a state match or new maintenance of effort requirements.
  • Maximize work participation opportunities.  Caseload reduction credits to states have become more difficult to maximize because work and education activities that count toward the credits have changed.  In response, states can enhance their “Welfare to Work” program offerings to better meet the more demanding requirements.[iii]
  • Meet Maintenance of Effort (MOE) requirements.  States must meet specific MOE requirements to access the Contingency Fund and other TANF funding.  For example, Contingency Fund MOE cannot be spent on child care or on programs outside the state’s designated welfare agency.  Guidance is available to help states ensure that any transfer of child care spending from state dollars to TANF dollars does not affect eligibility.

[i] [ii] Tweedie, J. 2008. Is Your State Receiving All the TANF Money to which It is Entitled? Denver,: National Conference of State Legislatures,

[iii] Greenberg, M. & Parrott, S.  January 18, 2006.  Summary of TANF Work Participation Provisions in the Budget Reconciliation Bill.  online.

States

States Maximize Work Opportunities.  Kentucky’s “Ready-to-Work” Bridge Program  helps TANF recipients attend community and technical colleges for certificate, degree or training programs and provides follow up coaching, referral, placement and retention services.

States

Partnering with Business to Provide Job Training.  Louisiana ’s Incumbent Worker Training Program provides grants to businesses and workforce providers who offer specific, on-site job training. It awards extra points to grant applications from employers who hire public assistance recipients or the formerly incarcerated.