Flexible Funding in TANF HSFO 2014 Louisville, KY Christine Calpin Don Winstead

Some Current TANF Issues Has State flexibility eroded over time? How much has the block grant reduced due to inflation? How much flexibility should States have in spending TANF & MOE funds on functions other than assistance or work-related activities? Was TANF responsive to needs in the Great Recession? Proposal for TANF Waivers? What changes are likely in the next reauthorization? Will purposes remain the same or will work get priority?

What is the Purpose of TANF? Federal Regulation §260.20 What is the purpose of the TANF program? The TANF program has the following four purposes: (a) Provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives; (b) End the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; (c) Prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and (d) Encourage the formation and maintenance of two-parent families.

What is the Purpose of TANF? The Statute Sec. 401. [42 U.S.C. 601] (a) In General.—The purpose of this part is to increase the flexibility of States in operating a program designed to— (1) provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives; (2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; (3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and (4) encourage the formation and maintenance of two-parent families.

One State Example TANF and TANF MOE by Major Category

Federal TANF and State MOE Funds Used in FY 2012, by Major Benefit and Service Category Source: CRS with data from HHS

Value of Basic TANF Block Grant ($Billions - 1997 Constant Dollars) Source: CRS Analysis Using CPI-U

Number of Families Receiving Cash Assistance: July 1959 – March 2013 PRWORA – August 1996 Source: CRS with data from HHS

Trends in Child-Only vs Adult-Headed Families

Were State TANF Programs Responsive in the Great Recession? From : The Responsiveness of the Temporary Assistance for Needy Families Program during the Great Recession By Haskins, Albert and Howard (forthcoming by Brookings Institution).  

What about work participation?

Effect of Caseload Reduction Credit and Creation of Solely State Funded Two-Parent Programs in FY 2011 23 States or Territories had an adjusted All-Family Participation Target of 0%. 13 States or Territories had an adjusted Two-Parent Participation Target of 0%. 27 States or Territories had no TANF and/or SSP-MOE families subject to the two-parent rate.

Some Current TANF Issues Has State flexibility eroded over time? How much has the block grant reduced due to inflation? How much flexibility should States have in spending TANF & MOE funds on functions other than assistance or work-related activities? Was TANF responsive to needs in the Great Recession? Proposal for TANF Waivers? What changes are likely in the next reauthorization? Will purposes remain the same or will work get priority?