TANF Emergency Fund

The American Recovery and Reinvestment Act of 2009 created a new TANF Emergency Fund to assist states in expanding services during the recession.  States that increased spending on assistance, short-term non-recurrent benefits, or subsidized employment last year or during FY 2010 can receive 80 percent reimbursement of the increased costs. The Administration for Children and Families (ACF) issued a policy announcement regarding the emergency fund and released a updated form ACF-100 for states to use to apply. In addition, ACF has posted answers to frequently asked questions on topics including administrative costs, claiming of third-party expenditures, purchase of gift cards, and subsidized employment.

The TANF Emergency Fund is scheduled to end on September 30, 2010. However, the President's budget proposal calls for an additional $2.5 billion for the emergency fund in FY 2011. The proposal would also expand the allowable uses of the emergency fund to include employment-related services and allow subsidized employment to be claimed for 100 percent reimbursement rather than 80 percent.  Each state could receive no more than 50 percent of its annual block grant from the Emergency Fund and the Contingency Fund during FY 2011. 

The emergency fund has been a valuable tool in promoting assistance to vulnerable families, and should be extended. See Extending the TANF Emergency Fund Creates Jobs Now.

URGENT:  The House Ways and Means Committee is currently drafting a jobs bill that could include an extension of the TANF Emergency Fund.  Learn more and take action.

TANF Emergency Fund Listserv

Sign up now for CLASP's TANF Emergency Fund Listserv!  Those interested in the TANF Emergency Fund can use the listserv to ask questions, share ideas, and exchange resources.  We'll also use it as a vehicle for forwarding new HHS guidance as it emerges.  The rules are simple: only members of the list can email the list, and all emails to the list must be cleared by a moderator before they're sent out to member inboxes. 

CLASP Resources and Publications on the TANF Emergency Fund:

• Sample documents related to the TANF Emergency Fund.
• TANF Emergency Fund: State Applications Approved as of February 18.
  
• Questions and Answers about the TANF Emergency Fund.
• The TANF Emergency Fund: A New Resource for Domestic Violence Programs.
  
• Making the Employment Connection:  New Opportunities to Support Transitional Jobs Programs Using the TANF Emergency Contingency Fund.
• Presentation: Opportunities in the Recovery Act for Income Support for Low-Income Women and Children.
  
• Audioconference: Rebuilding the Safety Net: State and Local Opportunities in Income Support, March 11, 2009.
  
• Audioconference: Building Public-Private Partnerships in Human Services: Inside the New York Back to School Benefit Example, September 3, 2009.
• Audioconference: What the TANF Emergency Fund Can Do for Your Cash-Strapped State, November 16, 2009.
  
• Testimony on the Emergency Fund before the Human Services Committee, DC Council, October 5, 2009.
• Additional American Recovery and Reinvestment Act resources.
  

Other Resources on the TANF Emergency Fund

General

• ACF Powerpoint on the TANF Emergency Fund
• Compilation of Federal Rules on Claiming Third-Party Expenditures toward the TANF Maintenance of Effort Requirement
• ACF List of approved Emergency Fund applications by category.
• Opportunities under the TANF Emergency Fund Created By the Federal Recovery Act, Liz Schott, Center on Budget and Policy Priorities, July 29, 2009. 
• Testimony on the Safety Net's Response to the Recession, Center on Budget and Policy Priorities, LaDonna Pavetti, October 8, 2009.
• Needy Families and the Recovery Act Funds: Is your state leaving money on the table?, Renee Davidson, Journalism Center on Children and Families, December 8, 2009.

Short-Term Non-Recurrent Assistance

• Ten Ways to Use Short-Term TANF Benefits and (Mostly) Federal Money to Help Low-Income Families and Children, National Conference of State Legislatures, October 2009.
• Open Society Institute and New York State press releases on Back to School Initiative.
• ACF's list of short-term non-recurrent assistance programs in approved state applications.

Subsidized Employment

• TANF Emergency Fund Transitional Jobs Implementation Toolkit, National Transitional Jobs Network. 
• Subsidized jobs website: www.employmentstimulus.org, Los Angeles, CA,
  
• Testimony on Perry County, TN subsidized jobs program, Virginia Lodge, Tennessee Department of Human Services, October 8, 2009.  See also New York Times article on Perry County and ACF Welfare Peer Technical Assistance Network summary on Perry County.
  
• New York State press release on subsidized jobs programs, July 14, 2009.  Seee also Community Voices Heard proposals for transitional jobs programs.
  
• Press release and website for San Francisco JOBS NOW!
• Article on Sonoma County subsidized jobs program, January 1, 2010.
• Article on Ocala, FL subsidized jobs program, January 6, 2010.
• Florida Back to Work Initiative.
• Joint ACF/ETA letter regarding youth subsidized employment opportunities under the TANF Emergency Fund.
• Article on subsidized jobs programs nationwide, and the need to extend the TANF Emergency Fund.
• San Francisco Chronicle article on opportunities for subsidized jobs programs in California under the TANF Emergency Fund. 
• New York Times article on Mississippi subsidized jobs programs, February 16, 2010.
• Article on Mecklenburg County subsidized jobs program, March 1, 2010.
• Article on Washington County, OH subsidized jobs program, January 23, 2010.
• Philadelphia Inquirer article on Pennsylvania's subsidized jobs program, February 27, 2010.

Additional Recovery Act Provisions Affecting TANF

• Carry-Over Funds: In May 2009, ACF issued an interim final rule implementing the Recovery Act provision that allows TANF funds carried over from previous fiscal years to be used for any allowable TANF benefit, service or activity.  Previously, carry-over funds could only be used for assistance.

• Caseload Reduction Credit:  In April 2009, ACF issued a program instruction, explaining the provision of the Recovery Act that allows states to receive, for FYs 2009, 2010 and 2011, the caseload reduction credit that they received in either FY 2008 or FY 2009 – including any credit due to excess MOE --  if that credit was higher than they would otherwise receive.  This provision is designed to hold states harmless for caseload increases and encourage them to provide assistance to needy families in the face of the recession.