Helping low-income adults obtain higher-quality jobs can lead to better job retention and wage growth. These individuals and others who experience difficulty in the labor market need access to employment services that enable them to enter the workforce and become reemployed if they lose their jobs.
House Subcommittee Looks at Subsidized Jobs for TANF Recipients
On July 30, 2014, the House Subcommittee on Human Resources of the Committee on Ways and Means held a hearing on subsidized employment programs and their effectiveness reducing poverty. Specifically, the hearing focused on state subsidized employment programs aimed at Temporary Assistance for Needy Families (TANF) recipients.
While states have always been allowed to use TANF funds for subsidized job programs, that application became much more prevalent in 2009 when the TANF Emergency Contingency Fund was created as part of the American Recovery and Reinvestment Act. Witnesses at the hearing discussed two of the longest-running subsidized jobs programs: Washington State’s WorkFirst Community Jobs program and Erie County (Buffalo), NY’s PIVOT program. During the hearing, Sandra Collins, a former TANF recipient who found employment through the Community Jobs Program, announced that she had just received a promotion to store manager. Dan Bloom of MDRC provided testimony summarizing past research findings and describing two evaluation efforts currently underway.
Chairman Dave Reichert (R-WA) and other subcommittee members showed interest in subsidized employment programs as a way to connect TANF recipients to work, although several members had concerns about how to ensure employers don’t use these programs as a source of free labor. Amy Dvorak of the Eric County Department of Social Services explained that her agency was very clear with employers that these placements were expected to lead to permanent full-time jobs. She also told the subcommittee that if an employer terminated a program participant immediately after the subsidy period ended, the Department would not place further recipients with that business.
- Neil Ridley | Jan 06, 2014 Resolved for 2014: Renew Jobless Benefits for the Long-Term Unemployed
- Elizabeth Lower-Basch | May 29, 2013 New Research Shows Value of Subsidized Employment Programs to Employers, Employees
- CLASP and National Transitional Jobs Network | May 21, 2013 Webinar: New Research on Subsidized Employment
- Neil Ridley | Apr 12, 2013 President's Budget Calls for Pathways Back to Work Fund
- CLASP and National Transitional Jobs Network | Apr 05, 2013 Recorded Webinar: Where's the Money? Innovative City and State Funding Approaches to Supporting Transitional Jobs & Subsidized Employment Programs
- Elizabeth Lower-Basch | Mar 06, 2014 Social Impact Bonds: Overview and Considerations
- Olivia Golden | Nov 08, 2013 Recommendations to the Congressional Budget Conference Committee
- Sep 03, 2013 CLASP Work Supports Newsletter - August 2013
- Jun 03, 2013 CLASP Work Supports Newsletter - May 2013
- Apr 30, 2013 CLASP Work Supports Newsletter - April 2013