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 increase spending on assistance, short-term non-recurrent benefits, or subsidized employment during FYs 2009 and 2010 can receive 80 percent reimbursement of the increased costs.   The Administration for Children and Families issued a policy announcement regarding the emergency fund on April 3, 2009 and released a form for states to use to apply on July 20, 2009.  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 Emergency Fund is scheduled to end on September 30, 2010.  CLASP believes it has been a valuable tool in promoting assistance to vulnerable families, and should be extended. See Extending the TANF Emergency Fund Creates Jobs Now.

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:

Other Resources on the TANF Emergency Fund

General

Short-Term Non-Recurrent Assistance

Subsidized Employment

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.
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