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 TANF Contingency Fund, which had an estimated $1.3 billion unclaimed by states for FY2008, provides an opportunity for many states to access new, flexible TANF funding.[i] To obtain TANF Contingency Funding, a state must qualify as “needy” based on its unemployment rate or SNAP (food stamp) participation rate. Estimated FY2008 food stamp participation totals are available for all 50 states. The Administration for Children and Families currently calculates that 42 states and the District of Columbia qualify as needy states.[ii]
· 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.
· Streamline eligibility determination and application processes. States can improve enrollment in TANF by adopting automated, user friendly systems that make it easier for eligible applicants to enroll.
[i] Tweedie, J. 2008. Is Your State Receiving All the TANF Money to which It is Entitled? Denver,: National Conference of State Legislatures,
[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. Retrieved January 26, 2009. http://www.cbpp.org/1-18-06tanf.pdf.