Aug 5, 2015 | PERMALINK »
Amidst Reauthorization Discussion, Latest TANF Financial Data Released
By Randi Hall
The Office of Family Assistance in the U.S. Department of Health and Human Services has released the Temporary Assistance for Needy Families (TANF) financial data for fiscal year 2014, providing new evidence of the wide range of programs and supports funded by both TANF and state spending claimed as maintenance of effort (MOE). For the second consecutive year, combined spending declined on core activities—basic cash assistance, child care (including funds transferred to the Child Care Development Block Grant or CCDBG), and work-related activities. While child care spending increased nationally by $120 million and work-related activities expenditures rose by $134.5 million, spending on basic assistance once again declined by $294.5 million, or 3 percent.
Together, these categories accounted for just under half of spending in 2014. New reporting requirements, which went into effect for FY 2015, will break down expenditures into more specific categories, providing more ability to understand the ways in which TANF supports activities such as child welfare or pre-kindergarten programs.
Source: CLASP calculations of FY 2014 TANF Expenditure Data. * Remaining Categories include Transfers to SSBG, Transportation and Supportive Services, Individual Development Accounts, Non-recurrent Short-Term Benefits, Two-Parent Family Formation, and Assistance & Non-assistance Authorized Under Prior Law.
This data is timely, as the U.S. House Ways and Means Committee will be considering a TANF reauthorization bill when Congress returns in September. The discussion draft bill poses an open question about whether to require states to spend at least a minimum share of TANF/MOE spending on core activities including basic assistance, child care, and work-related activities. During the hearing on this bill, Rep. Lloyd Doggett (D-TX) asked witnesses about a possible floor of 50 percent. While the United States as a whole spent 49.4 percent of TANF and MOE funds on these three core activities, 23 individual states would fall under the 50-percent spending floor if it had been in place in FY 2014. Eight of these states use less than 25 percent of their TANF/MOE funds on core activities. In our comments on the draft, CLASP advocates for a minimum spending floor to incentivize states to expand access to cash assistance and provide additional resources for workforce training and child care, enabling states to meet new proposed performance goals.
Jul 21, 2015 | PERMALINK »
CLASP Comments on U.S. House Discussion Draft on TANF Reauthorization
By Randi Hall
On Friday, July 10, the Subcommittee on Human Resources within the U.S. House of Representatives’ Committee on Ways and Means released a discussion draft of a bill to reauthorize the Temporary Assistance for Needy Families (TANF) program for fiscal years (FYs) 2016-2020. TANF has been operating under short-term extensions since 2010. The draft includes provisions that are garnering bipartisan support, and the subcommittee may try to move this bill forward before leaving for the August Congressional recess or in early September upon their return.
Last week, CLASP submitted comments on the discussion draft bill. These comments assess whether the proposed changes would address states’ likelihood of accomplishing TANF’s dual goals of alleviating poverty among children and families while creating effective pathways to economic security.
In earlier testimony for the record submitted to the subcommittee in May, CLASP documented the primary reasons for TANF’s ineffectiveness as a safety net:
- The block grant funding structure of TANF means less money in real terms has been available for income support and work programs
- The Work Participation Rate (WPR), which has been the primary performance measure for TANF, does not provide states an incentive to operate effective programs.
We are pleased that the discussion draft bill makes critical changes to improve the WPR, which CLASP has long advocated. The bill would give states greater flexibility to serve individuals with barriers to employment and other disabilities, and it would count more education and training activities toward the WPR to support TANF recipients in obtaining the skills and credentials needed to sustain employment.
However, the bill does not provide states with additional federal resources. Moreover, the elimination of some of the tools that states have previously used to meet the WPR may make it challenging for some states to meet the rate. We remain particularly concerned that the proposed elimination of these WPR tools, when combined with the costs of providing employment services to the neediest participants, may lead states that fail to meet the new rate to respond by restricting access to cash assistance for the most vulnerable families, rather than by expanding services. The draft bill proposes new outcome measures for TANF’s effectiveness in connecting recipients to employment, but not for its effectiveness as a safety net.
Our comments, therefore, provide recommendations for how to build on the discussion draft to strengthen both parts of TANF’s dual mission. We look forward to working with the Congress to improve the bill and ultimately reauthorizing TANF.
To read CLASP’s comments and recommendations on the discussion draft bill, click here.
To read CLASP’s more detailed comments on the proposed employment outcome measures, click here.
Jul 14, 2015 | PERMALINK »
CLASP Reacts to Release of 2015 TANF Reauthorization Bill
The U.S. House of Representatives Ways and Means Committee has released a bill to reauthorize the Temporary Assistance for Needy Families (TANF) program. Since its previous reauthorization in 2005, TANF has been continued under short-term extensions. CLASP strongly recommends that TANF reauthorization focus on alleviating poverty and creating effective pathways to economic opportunity.
TANF is a safety net and employment program meant to provide low-income parents the support necessary to become economically stable and provide a better future for their children. However, research shows that TANF has not accomplished either goal. Low caseloads indicate that families are not utilizing the program due to a variety of factors.
Reauthorization gives Congress the opportunity to transform TANF into a program that truly helps low-income families meet immediate needs while advancing toward economic stability. CLASP is strongly committed to making this program work; we will be reviewing the reauthorization bill and will continue to engage Congress to ensure TANF provides an adequate safety net and necessary employment support.
For background information on TANF, see our TANF 101 series of briefs.