Act Now to Extend the TANF Emergency Fund

Please contact your Representative and Senators and tell them to support extending the TANF Emergency Fund.  On Wednesday, July 28, 2010, the House's Ways and Means Committee introduced H.R. 5893, the "Investing In American Jobs and Closing Tax Loopholes Act of 2010" which renames the TANF Emergency Fund as the "Emergency Fund for Job Creation and Assistance" and extends it for FY 2011.  Under this bill, states could receive up to 30% of their adjusted block grant during FY 2011.  We expect that it will be voted on Thursday or Friday, before the House recesses.  Please contact your Senator and urge them to pass this bill before they recess next week.

Created by the American Recovery and Reinvestment Act, the TANF Emergency Fund is scheduled to expire on September 30, 2010.  The TANF Emergency Fund has been a valuable tool in promoting assistance to vulnerable families, and it should be extended because far too many families are still facing high levels of unemployment and need.  Please make sure your Representative and Senators know the urgency of passing this extension and how the Emergency Fund is making a difference in your state. Also tell them about any problems caused by the uncertainty of the extension -- such as employers becoming reluctant to hire subsidized workers who may only be covered for a few months, or food banks reducing their purchases of food to make sure that they can distribute all of it by September 30.  Also contact your Governor and state officials and urge them to encourage your congressional delegation to support this important legislation. 

Passing the extension now will allow states to plan for using the Emergency Funds over the next year, and will provide an opportunity to demonstrate success before the funding expires.  States already have plans to create more than 240,000 jobs before the TANF Emergency Fund expires, almost all of which are in the private sector. See Extending the TANF Emergency Fund Creates Jobs Now. These jobs will be lost if the Emergency Fund is not extended. States also have used the TANF Emergency Fund to cover the costs of rising caseloads, to help families stave off crises and to help non-profits that address basic needs (such as food banks) to meet the rising demand for services.

This program has received bipartisan support. Subsidized employment programs have been created in states with both Democratic and Republican governors. Kevin Hassert with the American Enterprise Institute recently made the following statement about the extension of the TANF Emergency Fund: "Given the state of the labor market, it is hard to imagine how any sensible person could oppose such a move. It is shame that such common sense was absent last year. If they are to be more than the party of no, Republicans need to rally around the Democrats who have shown such reserved pragmatism."

More information on the TANF Emergency Fund.

Also, here is a Chart on maximum allocations states could receive from H.R. 5893