TANF

Temporary Assistance for Needy Families
Under the welfare reform legislation of 1996, (the Personal Responsibility and Work Opportunity Reconciliation Act- PRWORA), TANF (Temporary Assistance for Needy Families) replaced the welfare programs known as Aid to Families with Dependent Children, the Job Opportunities and Basic Skills Training program and the Emergency Assistance program. The law ended federal entitlement to assistance and instead created TANF as a block grant that provides States, territories and tribes federal funds each year. These funds cover benefits, administrative expenses, and services targeted to needy families. TANF became effective July 1, 1997, and was reauthorized in February 2006 under the Deficit Reduction Act of 2005.

TANF provides a capped grant to states, with supplemental and bonus grants available. In addition, states must meet federal work participation rates and reporting requirements related to TANF expenditures. As stated in a Center for Public Policy Priorities report, in addition to these changes, PRWORA also made major changes to child care, child support enforcement, Food Stamps, Supplemental Security Income, and Medicaid [1].

TANF was designed with the purpose of helping low-income families achieve self-sufficiency. States use the block grants to accomplish the following goals of TANF [2]:

• Provide assistance to needy families to care for their children in their own homes
• Reduce the dependency of needy parents by promoting marriage, work, and job preparation
• Prevent pregnancies out-of-wedlock
• Encourage the creation and preservation of two-parent families

In Fiscal Year (FY) 2006, combined Federal and State expenditures for the TANF program totaled $25.6 billion. In FY 2006, States received Federal TANF grants totaling $16.7 billion nationally, which included each State’s base TANF grant and supplemental grants.

In Texas
In Texas, TANF money helps families pay for food, clothing, housing, utilities, furniture, transportation, telephone, laundry, household equipment, medical supplies for paid for by Medicaid, and other basic needs. The amount of TANF payment depends on family income and size. In Texas, the TANF program includes Texas Works (Department of Human Services), cash assistance; Choices (Texas Workforce Commission), TANF work program.

Between 2004 and 2009, Texas received $540 million in TANF funding. Of that $468.3 million was a basic grant and $52.7 million was supplemental funds. During this time, disbursements for TANF cases have steadily declined [3]. In FY 2008, Texas was one of 13 states that did not transfer TANF dollars to child care [4].

In the News
TANF is authorized through September 30, 2010. Congress will reexamine the rules of how states can use funding, funding levels, and the requirements that states must meet regarding families that receive assistance in a TANF cash aid program.  In announcing his budget in February of 2010, President Obama revealed that TANF will not be reauthorized at the end of September but rather will receive an extension through fiscal year 2011.

[1] Center for Public Policy Priorities http://www.cppp.org/files/3/TANF%20Nov%2005_8by11.pdf
[2] Administration for Children and Families http://www.acf.hhs.gov/programs/ofa/tanf/about.html
[3] Texas Health and Human Services Commission http://www.hhsc.state.tx.us/research/TANF_FS.asp
[4]Administration for Children and Families http://www.acf.hhs.gov/programs/ofs/data/2008/tableA_spending_2008.html