Temporary Assistance for Needy Families and Proposed COVID-19 Pandemic Economic Relief: In Brief
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Temporary Assistance for Needy Families and
February 23March 2, 2021 , 2021
Proposed COVID-19 Pandemic Economic
Gene Falk
Relief: In Brief
Specialist in Social Policy Specialist in Social Policy
The Temporary Assistance for Needy Families (TANF) block grant provides grants to states, The Temporary Assistance for Needy Families (TANF) block grant provides grants to states,
Patrick A. Landers
territories, and American Indian tribes to help finance a wide range of benefits and services for territories, and American Indian tribes to help finance a wide range of benefits and services for
Analyst in Social Policy Analyst in Social Policy
needy families with children. On February needy families with children. On February2227, 2021, the House , 2021, the House Budget Committee reported an
passed the American Rescue Plan
Act of 2021 (H.R. 1319), an omnibus budget reconciliation bill that would, among other provisions, create a temporary $1 omnibus budget reconciliation bill that would, among other provisions, create a temporary $1
billion TANF billion TANFPandemic Emergency Assistance Fundfund to provide non-recurrent short-term
benefits. As of that date, the Senate had not yet . As of that date, the Senate had not yet
moved to consider similar legislation as part of the budget reconciliation process for FY2021. moved to consider similar legislation as part of the budget reconciliation process for FY2021.
The primary TANF funding stream, the state family assistance block grant, provides states a set dollar amount determined by The primary TANF funding stream, the state family assistance block grant, provides states a set dollar amount determined by
a formula established in law by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA; a formula established in law by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA;
P.L. 104-193). This amount is not adjusted for inflation, population shifts, or any other changes that have transpired since the P.L. 104-193). This amount is not adjusted for inflation, population shifts, or any other changes that have transpired since the
mid-1990s. States are required to expend a minimum amount of their own funds, known as the state maintenance-of-effort mid-1990s. States are required to expend a minimum amount of their own funds, known as the state maintenance-of-effort
(MOE) requirement, on the TANF-related population and TANF-related programs. This amount also has not changed since (MOE) requirement, on the TANF-related population and TANF-related programs. This amount also has not changed since
the mid-1990s. In recent years, Congress has also appropriated funding to the TANF contingency fund, which was first the mid-1990s. In recent years, Congress has also appropriated funding to the TANF contingency fund, which was first
established in 1996 as a source of additional funding in the event of an economic downturn and provides matching grants to established in 1996 as a source of additional funding in the event of an economic downturn and provides matching grants to
states meeting certain requirements. In total, states expended $30.9 billion in federal TANF grants to states and state MOE states meeting certain requirements. In total, states expended $30.9 billion in federal TANF grants to states and state MOE
funds in FY2019. TANF funds can be used to provide a variety of benefits and services, including ongoing basic economic funds in FY2019. TANF funds can be used to provide a variety of benefits and services, including ongoing basic economic
assistance; emergency, short-term aid; work, education, and training activities; child care and other work supports; and social assistance; emergency, short-term aid; work, education, and training activities; child care and other work supports; and social
services. States vary widely in how they use federal TANF grants and state MOE funds. services. States vary widely in how they use federal TANF grants and state MOE funds.
Under the House Under the House Budget Committee-reported legislation, the-passed bill, a temporary TANF temporary TANF Pandemic Emergency Assistance Fundgrant would would
provide $1 billion to states, territories, and tribes to supplement other TANF funding. Initial grants would be made to states provide $1 billion to states, territories, and tribes to supplement other TANF funding. Initial grants would be made to states
up to a set allocation amount. The U.S. Department of Health and Human Services (HHS) would be given $2 million for up to a set allocation amount. The U.S. Department of Health and Human Services (HHS) would be given $2 million for
federal administration and to help provide technical assistance to states, territories, and tribes. After the amount for technical federal administration and to help provide technical assistance to states, territories, and tribes. After the amount for technical
assistanceas sistance is set aside, 7.5% of the remaining funds would be provided to the territories and Indian tribes and 92.5% of the is set aside, 7.5% of the remaining funds would be provided to the territories and Indian tribes and 92.5% of the
remaining funds would be allotted to the 50 states and District of Columbia. The state funding would be initially allocated as remaining funds would be allotted to the 50 states and District of Columbia. The state funding would be initially allocated as
follows: 50% would be allocated by each state’s share of the total child population, and 50% would be allocated by each follows: 50% would be allocated by each state’s share of the total child population, and 50% would be allocated by each
state’s share of total FY2019 TANF expenditures on basic assistance, non-recurrent short-term benefits, state’s share of total FY2019 TANF expenditures on basic assistance, non-recurrent short-term benefits, emergency
assistance, and emergency and emergency servicesassistance. States, territories, and tribes could only use this funding for . States, territories, and tribes could only use this funding for non-recurrent short-term
benefits. These short-term benefits address a specific crisis situation or episode of need and can be provided in cash or non-. These short-term benefits address a specific crisis situation or episode of need and can be provided in cash or non-
cash forms (e.g., payment vouchers for emergency housing or food aid). Non-recurrent short-term benefits are not subject to cash forms (e.g., payment vouchers for emergency housing or food aid). Non-recurrent short-term benefits are not subject to
a number of provisions applicable to basic assistance under TANF (e.g., time limits, work requirements, child support a number of provisions applicable to basic assistance under TANF (e.g., time limits, work requirements, child support
requirements). requirements).
Congressional Research Service Congressional Research Service
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Contents
Introduction ................................................................................................................... 1
TANF Funding ............................................................................................................... 1
How TANF Funds Are Used........................................................................................ 2
TANF and Economic Downturns ................................................................................. 3
Proposed TANF Pandemic Emergency AssistanceFund ................................................................ 34
Funding Allocation ....................................................................................................34
Use of Funds.............................................................................................................67
Other Rules Related to the Pandemic Emergency AssistanceFund ............................................ 8
Figures
Figure 1. Uses of TANF Funds by Spending Category, FY2019..............................................23
Tables
Table 1. Estimated Initial Al ocations for a Proposed Temporary Assistance for Needy
Families (TANF) Grant to Provide Pandemic Emergency AssistanceFund .................................................... 4 5
Contacts
Author Information ......................................................................................................... 8
Congressional Research Service Congressional Research Service
TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
Introduction
The Temporary Assistance for Needy Families (TANF) block grant provides grants to states, The Temporary Assistance for Needy Families (TANF) block grant provides grants to states,
territories, and American Indian tribes to help finance a wide range of benefits and services territories, and American Indian tribes to help finance a wide range of benefits and services
related to ameliorating the effects of, and addressing the root causes of, economic disadvantage related to ameliorating the effects of, and addressing the root causes of, economic disadvantage
among families with children. It is best known for providing ongoing economic assistance to among families with children. It is best known for providing ongoing economic assistance to
families with children, but it also funds emergency, short-term aid; child care; employment and families with children, but it also funds emergency, short-term aid; child care; employment and
training programs for assistance recipients as wel as other eligible parents or youth; and social training programs for assistance recipients as wel as other eligible parents or youth; and social
services. services.
In 2020, five separate laws were enacted to address the economic fal out from the Coronavirus In 2020, five separate laws were enacted to address the economic fal out from the Coronavirus
Disease 2019 (COVID-19) pandemic and provide economic relief.1 No additional funding for Disease 2019 (COVID-19) pandemic and provide economic relief.1 No additional funding for
TANF was provided in any of those measures, though the Department of Health and Human TANF was provided in any of those measures, though the Department of Health and Human
Services (HHS) announced it would provide relief from penalties under existing law to states that Services (HHS) announced it would provide relief from penalties under existing law to states that
failed to meet TANF work participation standards.2 failed to meet TANF work participation standards.2
President Biden proposed $1 bil ion in additional TANF funding to help finance additional cash President Biden proposed $1 bil ion in additional TANF funding to help finance additional cash
assistance as part of his American Rescue Plan.3 On February assistance as part of his American Rescue Plan.3 On February2227, 2021, the House , 2021, the House Budget
Committee reportedpassed the American Rescue Plan Act (H.R. 1319), an omnibus budget reconciliation bil to the House chamber. Title IX, an omnibus budget reconciliation bil to the House chamber. Title IX,
Section Section91019201, of the American Rescue Plan Act of 2021 would create a $1 bil ion temporary , of the American Rescue Plan Act of 2021 would create a $1 bil ion temporary
TANF Pandemic Emergency Assistance FundTANF grant to supplement other TANF funding.4 As of that to supplement other TANF funding.4 As of that
date, the Senate had not yet moved to consider similar legislation as part of the budget date, the Senate had not yet moved to consider similar legislation as part of the budget
reconciliation process for reconciliation process for
FY2021.5 FY2021.5
TANF Funding
TANF was created in the Personal Responsibility and Work Opportunity Reconciliation Act of TANF was created in the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (PRWORA, P.L. 104-193). Before PRWORA, economic assistance to needy families with 1996 (PRWORA, P.L. 104-193). Before PRWORA, economic assistance to needy families with
children was provided through a federal-state matching grant program. Under that program (Aid children was provided through a federal-state matching grant program. Under that program (Aid
to Families with Dependent Children [AFDC]), funding was not limited, and federal grants to Families with Dependent Children [AFDC]), funding was not limited, and federal grants
reimbursed states for a share of their expenditures. Those expenditures were determined by, and reimbursed states for a share of their expenditures. Those expenditures were determined by, and
changed according to, the number of families receiving assistance and the benefit amounts they changed according to, the number of families receiving assistance and the benefit amounts they
received. received.
PRWORA converted funding for AFDC and related programs into the TANF block grant, with the PRWORA converted funding for AFDC and related programs into the TANF block grant, with the
bulk of funding in the state family assistance grant. The state family assistance grant provides bulk of funding in the state family assistance grant. The state family assistance grant provides
states a set dollar amount determined by a formula established in the law. It does not change
1 For more information, see CRS Report R46460, 1 For more information, see CRS Report R46460, Fiscal Policy and Recovery from the COVID-19 Recession. .
2 U.S. Department of Health and Human Services (HHS), Administration for Children and Families, Office of Family 2 U.S. Department of Health and Human Services (HHS), Administration for Children and Families, Office of Family
Assistance, Assistance, Questions and Answers about TANF and the Coronavirus Disease 2019 (COVID -19) Pandem ic, T ANF-, T ANF-
ACF-PI-2020-01, March 2020, https://www.acf.hhs.gov/ofa/policy-guidance/tanf-acf-pi-2020-01-questions-and-ACF-PI-2020-01, March 2020, https://www.acf.hhs.gov/ofa/policy-guidance/tanf-acf-pi-2020-01-questions-and-
answers-about -tanf-and-coronavirus-disease. answers-about -tanf-and-coronavirus-disease.
3 T he White House, “ President Biden Announces American Rescue Plan,” January 20, 2021, at 3 T he White House, “ President Biden Announces American Rescue Plan,” January 20, 2021, at
https://www.whitehouse.gov/briefing-room/legislation/2021/01/20/president -biden-announces-american-rescue-plan/. https://www.whitehouse.gov/briefing-room/legislation/2021/01/20/president -biden-announces-american-rescue-plan/.
4 T he provision creating the T ANF 4 T he provision creating the T ANF Pandemic Emergency Fundpandemic emergency assistance was ordered to be sent to the House Budget was ordered to be sent to the House Budget Committee Committee
from the House Committee on Ways and Means on February 10, 2021from the House Committee on Ways and Means on February 10, 2021 .
. T he House Budget Committee included this legislative language in its reported version of H.R. 1319. 5 For information on budget reconciliation, see CRS Report R44058, 5 For information on budget reconciliation, see CRS Report R44058, The Budget Reconciliation Process: Stages of
Consideration. For information on the budget resolution for FY2021, which contains reconciliation directives, see CRS . For information on the budget resolution for FY2021, which contains reconciliation directives, see CRS
Report R46675, Report R46675, S.Con.Res. 5: The Budget Resolution for FY2021 . .
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6 TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
states a set dollar amount determined by a formula established in the law. It does not change according to the number of families receiving assistance or benefit amounts. Additional y, the according to the number of families receiving assistance or benefit amounts. Additional y, the
funding levels for the state family assistance grant provided by PRWORA have not been funding levels for the state family assistance grant provided by PRWORA have not been
increased for inflation, population, or other changes that have transpired since the mid-1990s. The increased for inflation, population, or other changes that have transpired since the mid-1990s. The
state family assistance grant totaled $16.5 bil ion in FY2019. In addition to expending federal state family assistance grant totaled $16.5 bil ion in FY2019. In addition to expending federal
TANF grants, TANF requires states to make expenditures from their own funds on TANF or TANF grants, TANF requires states to make expenditures from their own funds on TANF or
TANF-related programs. This requirement, known as the state maintenance-of-effort (MOE) TANF-related programs. This requirement, known as the state maintenance-of-effort (MOE)
requirement, is also a set amount that has not been adjusted for changes since the mid-1990s.6 requirement, is also a set amount that has not been adjusted for changes since the mid-1990s.6
How TANF Funds Are Used
Figure 1 shows how the $30.9 bil ion in federal TANF grants to states and state MOE funds was shows how the $30.9 bil ion in federal TANF grants to states and state MOE funds was
expended, or transferred to other block grant programs, in FY2019. Ongoing basic economic expended, or transferred to other block grant programs, in FY2019. Ongoing basic economic
assistance was the most common use, but it only represented 21% ($6.5 bil ion) of total spending. assistance was the most common use, but it only represented 21% ($6.5 bil ion) of total spending.
Other common uses included child care, work and training programs, refundable tax credits, pre-Other common uses included child care, work and training programs, refundable tax credits, pre-
kindergarten programs, programs to provide services to children who have been abused and kindergarten programs, programs to provide services to children who have been abused and
neglected or are at risk of abuse or neglect, emergency and short-term benefits, and other services neglected or are at risk of abuse or neglect, emergency and short-term benefits, and other services
(youth, responsible fatherhood, and healthy marriage promotion activities). (youth, responsible fatherhood, and healthy marriage promotion activities).
States have broad discretion within TANF, and their use of federal TANF grants and state MOE States have broad discretion within TANF, and their use of federal TANF grants and state MOE
funds varies considerably. For example, the share of total expenditures devoted to basic assistance funds varies considerably. For example, the share of total expenditures devoted to basic assistance
ranged from a low of 3.6% (Indiana) to a high of 69.3% (Kentucky) in FY2019. Work, education, ranged from a low of 3.6% (Indiana) to a high of 69.3% (Kentucky) in FY2019. Work, education,
and training expenditures varied from a low of 0.2% (Arizona) to a high of 26.9% (California). and training expenditures varied from a low of 0.2% (Arizona) to a high of 26.9% (California).
Eight states and the District of Columbia reported no TANF expenditures on child welfare, while Eight states and the District of Columbia reported no TANF expenditures on child welfare, while
three states (Arizona, Georgia, and North Dakota) al ocated more than half their federal TANF three states (Arizona, Georgia, and North Dakota) al ocated more than half their federal TANF
grant and state MOE funds to this purpose.7 grant and state MOE funds to this purpose.7
Figure 1. Uses of TANF Funds by Spending Category, FY2019
(Dol ars in bil ions)
Source: Congressional Research Service (CRS), based on data posted to the U.S. Department of Health and
Human Services (HHS) website on October 22, 2020.
6 For additional details on T ANF financing, see CRS Report RL32748, 6 For additional details on T ANF financing, see CRS Report RL32748, The Temporary Assistance for Needy Families
(TANF) Block Grant: A Prim er on TANF Financing and Federal Requirem ents. .
7 For data on FY2019 T ANF expenditures by category and state, see T able B-1 and T able B-2 in CRS Report 7 For data on FY2019 T ANF expenditures by category and state, see T able B-1 and T able B-2 in CRS Report
RL32760, RL32760, The Tem porary Assistance for Needy Fam ilies (TANF) Block Grant: Responses to Frequently Asked
Questions. .
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TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
Figure 1. Uses of TANF Funds by Spending Category, FY2019 (Dol ars in bil ions) Source: Congressional Research Service (CRS), based on data posted to the U.S. Department of Health and Human Services (HHS) website on October 22, 2020. Notes: Categories may not add to total because of rounding. Excludes TANF funds used in the territories and in Categories may not add to total because of rounding. Excludes TANF funds used in the territories and in
tribal TANF programs. tribal TANF programs.
TANF and Economic Downturns
To provide states with additional funding in the event of an economic downturn, PRWORA To provide states with additional funding in the event of an economic downturn, PRWORA
established a $2 bil ion TANF contingency fund. This fund provides matching grants to states if established a $2 bil ion TANF contingency fund. This fund provides matching grants to states if
they meet certain requirements related to extra state spending, high and increasing they meet certain requirements related to extra state spending, high and increasing
unemployment, or high and increasing caseloads in the Supplemental Nutrition Assistance unemployment, or high and increasing caseloads in the Supplemental Nutrition Assistance
Program (SNAP). The contingency fund al ows grants to be used for any TANF benefit or Program (SNAP). The contingency fund al ows grants to be used for any TANF benefit or
service. service.
The original $2 bil ion appropriation to the TANF contingency fund was exhausted during the The original $2 bil ion appropriation to the TANF contingency fund was exhausted during the
period of high unemployment associated with the 2007-2009 recession. Since then, Congress has period of high unemployment associated with the 2007-2009 recession. Since then, Congress has
funded the contingency fund with annual appropriations. The FY2021 appropriation to the funded the contingency fund with annual appropriations. The FY2021 appropriation to the
contingency fund is $608 mil ion, an amount expected to be exhausted in spring 2021.8 contingency fund is $608 mil ion, an amount expected to be exhausted in spring 2021.8
In 2009, facing the exhaustion of the contingency fund and other concerns about its eligibility In 2009, facing the exhaustion of the contingency fund and other concerns about its eligibility
criteria and uses, Congress established the Emergency Contingency Fund (ECF) in the American criteria and uses, Congress established the Emergency Contingency Fund (ECF) in the American
Recovery and Reinvestment Act (ARRA, P.L. 111-5).9 The ECF was a $5 bil ion fund to help Recovery and Reinvestment Act (ARRA, P.L. 111-5).9 The ECF was a $5 bil ion fund to help
states, territories, and tribes finance increased expenditures for basic assistance, non-recurrent states, territories, and tribes finance increased expenditures for basic assistance, non-recurrent
short-term aid, and subsidized employment. The ECF expired on September 30, 2010. It was not short-term aid, and subsidized employment. The ECF expired on September 30, 2010. It was not
reauthorized, nor has it received additional funding. reauthorized, nor has it received additional funding.
Proposed TANF Pandemic Emergency Assistance
Fund
The House Budget Committee-reported omnibus budget reconciliation bil would create a
temporary TANF Pandemic Emergency Assistance Fund
8 As of February 3, 2021, states received cumulative FY2021 contingency fund grants of $384.9 million from the FY2021 appropriation of $608 million. Grants are being made at a rate of $77 million per month. At this rate, the FY2021 appropriation to the cont ingency fund will be exhausted in May 2021.
9 For a discussion of the 2009 T ANF Emergency Contingency Fund, see CRS Report R41078, The TANF Emergency Contingency Fund.
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Proposed TANF Pandemic Emergency Assistance The House-passed bil would create a temporary TANF grant. It would provide $1 bil ion to help . It would provide $1 bil ion to help
states, territories, and tribes finance non-recurrent short-term benefits. The legislation would states, territories, and tribes finance non-recurrent short-term benefits. The legislation would
make eligible for funds the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. make eligible for funds the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S.
Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI),
and Indian tribes.10 American Samoa and CNMI do not operate regular TANF programs. Their and Indian tribes.10 American Samoa and CNMI do not operate regular TANF programs. Their
funds would be directed to the agency that administers most of the local human services programs funds would be directed to the agency that administers most of the local human services programs
in those territories. in those territories.
Funding Allocation
Under the HouseUnder the House Budget Committee-reported-passed legislation, initial grants would be made to states legislation, initial grants would be made to states
up to a set al ocation amount. HHS would be given $2 mil ion for federal administration and to up to a set al ocation amount. HHS would be given $2 mil ion for federal administration and to
help provide technical assistance to states, territories, and tribes. After the amount for technical help provide technical assistance to states, territories, and tribes. After the amount for technical
assistance is set aside, assistance is set aside, 7.5% of the remaining funds would be provided to the territories and7.5% of the remaining funds would be provided to the territories and
8 As of February 3, 2021, states received cumulative FY2021 contingency fund grants of $384.9 million from the
FY2021 appropriation of $608 million. Grants are being made at a rate of $77 million per month. At this rate, the
FY2021 appropriation to the contingency fund will be exhausted in May 2021.
9 For a discussion of the 2009 T ANF Emergency Contingency Fund, see CRS Report R41078, The TANF Emergency
Contingency Fund.
10 T he funds provided to Puerto Rico, Guam, and the U.S. Virgin Islands would be excluded from the statutory (Sec tion
1108 of the Social Security Act) limits on public assistance funding provided to these jurisdictions.
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Indian tribes and 92.5% of Indian tribes and 92.5% of
the remaining funds would be al otted to the 50 states and the District the remaining funds would be al otted to the 50 states and the District
of Columbia.11 of Columbia.11
Funds to the 50 states and District of Columbia ($923.150 mil ion) would be al ocated as follows: Funds to the 50 states and District of Columbia ($923.150 mil ion) would be al ocated as follows:
50% of funds would be al ocated based on each state’s total child (under age 18) 50% of funds would be al ocated based on each state’s total child (under age 18)
population as a percentage of the total child population of the 50 states and population as a percentage of the total child population of the 50 states and
District of Columbia; and District of Columbia; and
50% of funds would be al ocated based on each state’s FY2019 expenditures on 50% of funds would be al ocated based on each state’s FY2019 expenditures on
basic assistance, non-recurrent short-term benefits, basic assistance, non-recurrent short-term benefits,emergency assistance, and and
emergency emergencyservicesassistance as a percentage of the total expenditures for these categories as a percentage of the total expenditures for these categories
in the 50 states and District of Columbia.12 in the 50 states and District of Columbia.12
Under the proposed Under the proposedPandemic Emergency Assistance Fund, fundsgrant, monies that are not used by a state that are not used by a state
would be real ocated to other states. Thus, after the real ocation of unused funds, the actual would be real ocated to other states. Thus, after the real ocation of unused funds, the actual
amounts received by some states might amounts received by some states might
differ from the estimated al otments. differ from the estimated al otments.
Table 1 provides the Congressional Research Service’s estimates of the initial al ocationprovides the Congressional Research Service’s estimates of the initial al ocation of the proposed TANF grantof
TANF Pandemic Emergency Assistance Funds to the states. These estimates are provided solely . These estimates are provided solely
to assist in comparisons of the relative to assist in comparisons of the relative
impact of funding levels and alternative formulas in the impact of funding levels and alternative formulas in the
legislative process. The data used in providing the al ocation estimates are discussed in the note legislative process. The data used in providing the al ocation estimates are discussed in the noteto
to Table 1. 13 Should HHS use Should HHS use
different data, the al ocations to the states would likely also differ. different data, the al ocations to the states would likely also differ.
The table shows these estimates relative to the TANF state family assistance grant. Its final The table shows these estimates relative to the TANF state family assistance grant. Its final
column shows how much pandemic emergency assistance column shows how much pandemic emergency assistancefundsgrants would increase TANF funding would increase TANF funding
above the amount provided by the state family assistance grant. above the amount provided by the state family assistance grant.
Table 1. Estimated Initial Allocations for a Proposed Temporary Assistance for
Needy Families (TANF) Pandemic Emergency Assistance Fund
Pandemic
Estimated
Emergency
Pandemic
Assistance Funds as
State Family
Emergency
a Percentage of the
Assistance Grant,
Assistance Fund
State Family
FY2019
Allocation
Assistance Grant in
State
(millions of $)
(millions of $)
FY2019
Alabama
$93.007
$10.149
10.9%
Alaska
44.397
3.349
7.5
Arizona
199.407
14.496
7.3
Arkansas
56.546
4.996
8.8
California
3,635.563
202.289
5.6
Colorado
135.608
13.469
9.9
Connecticut
265.908
8.298
3.1
10 T he funds provided to Puerto Rico, Guam, and the U.S. Virgin Islands would be excluded from the statutory (Section 1108 of the Social Security Act) limits on public assistance funding provided to these jurisdictions. 11 Funding to territories and tribes would be allocated as the HHS Secretary deems appropriate based on the needs of 11 Funding to territories and tribes would be allocated as the HHS Secretary deems appropriate based on the needs of
the territory or tribe involved. the territory or tribe involved.
12 Non-recurrent short-term benefits12 Non-recurrent short-term benefits, and emergency assistance emergency assistance, and emergency services comprise comprise most of the CRS-tabulated the CRS-tabulated
category “Emergency and Shortcategory “Emergency and Short -T erm Benefits” shown i-T erm Benefits” shown in Figure 1.. 13 T his table is a revision of allocation estimates shown in an earlier version of this report. T he previous version had allocated 50% of funds based on FY2019 expenditures t hat included “ emergency services” in addition to emergency assistance.
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TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
Table 1. Estimated Initial Allocations for a Proposed Temporary Assistance for
Needy Families (TANF) Grant to Provide Pandemic Emergency Assistance
Pandemic
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Pandemic
Estimated
Emergency
Pandemic
AssistanceFunds as
State Familyas
SFAG
Emergency
a Percentage of the
Assistance Grant,
Payable to
AssistanceFund
State Family
FY2019
of SFAG
the State
Allocation
Assistance Grant inPayable to
State
(millions of $) (millions of $)
(millions of $)
FY2019
Delaware
32.184
2.063
6.4
District of Columbia
92.304
14.598
15.8
Florida
560.484
35.367
6.3
Georgia
329.650
21.935
6.7
Hawai
98.578
4.189
4.2
Idaho
30.307
4.060
13.4
Il inois
583.126
20.398
3.5
Indiana
206.117
10.671
5.2
Iowa
130.558
6.344
4.9
Kansas
101.478
5.126
5.1
Kentucky
180.689
17.303
9.6
Louisiana
163.431
8.361
5.1
Maine
76.847
3.840
5.0
Maryland
228.342
17.667
7.7
Massachusetts
457.855
27.655
6.0
Michigan
772.794
18.956
2.5
Minnesota
259.569
14.264
5.5
Mississippi
86.481
4.741
5.5
Missouri
216.335
14.463
6.7
Montana
37.889
2.725
7.2
Nebraska
56.627
4.432
7.8
Nevada
43.762
6.774
15.5
New Hampshire
38.394
4.107
10.7
New Jersey
402.702
17.197
4.3
New Mexico
109.920
6.359
5.8
New York
2,434.869
127.908
5.3
North Carolina
300.438
16.780
5.6
North Dakota
26.313
1.369
5.2
Ohio
725.566
33.776
4.7
Oklahoma
144.793
7.114
4.9
Oregon
165.835
12.170
7.3
Pennsylvania
717.125
26.408
3.7
Congressional Research Service
5
TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
Pandemic
Estimated
Emergency
Pandemic
Assistance Funds as
State Family
Emergency
a Percentage of the
Assistance Grant,
Assistance Fund
State Family
FY2019
Allocation
Assistance Grant in
State
(millions of $)
(millions of $)
FY2019
Rhode Island
94.292
4.332
4.6
South Carolina
99.638
10.115
10.2
South Dakota
21.207
2.285
10.8
Tennessee
190.892
12.939
6.8
Texas
484.652
49.441
10.2
Utah
75.356
7.320
9.7
Vermont
47.197
1.614
3.4
Virginia
157.763
15.711
10.0
Washington
379.058
22.635
6.0
West Virginia
109.813
4.591
4.2
Wisconsin
312.846
14.472
4.6
Wyoming
18.429
1.529
8.3
Subtotal,
the State
Alabama
$93.007
$10.181
10.9%
Alaska
44.397
3.370
7.6
Arizona
199.407
14.536
7.3
Arkansas
56.546
4.717
8.3
California
3,635.563
203.700
5.6
Colorado
135.608
13.522
10.0
Connecticut
265.908
7.088
2.7
Delaware
32.184
2.070
6.4
District of Columbia
92.304
14.731
16.0
Florida
560.484
35.451
6.3
Georgia
329.650
21.994
6.7
Hawai
98.578
4.211
4.3
Idaho
30.307
3.410
11.3
Il inois
583.126
20.423
3.5
Indiana
206.117
10.678
5.2
Iowa
130.558
6.361
4.9
Kansas
101.478
5.133
5.1
Kentucky
180.689
17.408
9.6
Louisiana
163.431
7.908
4.8
Maine
76.847
3.862
5.0
Maryland
228.342
17.756
7.8
Massachusetts
457.855
27.840
6.1
Michigan
772.794
19.000
2.5
Minnesota
259.569
14.322
5.5
Mississippi
86.481
4.744
5.5
Missouri
216.335
14.519
6.7
Montana
37.889
2.738
7.2
Nebraska
56.627
4.446
7.9
Nevada
43.762
6.798
15.5
New Hampshire
38.394
4.131
10.8
New Jersey
402.702
17.244
4.3
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TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
Pandemic
Emergency
Pandemic
Assistance as
SFAG
Emergency
a Percentage
Payable to
Assistance
of SFAG
the State
Allocation
Payable to
State
(millions of $) (millions of $)
the State
New Mexico
109.920
6.391
5.8
New York
2,434.869
127.154
5.2
North Carolina
300.438
16.802
5.6
North Dakota
26.313
1.371
5.2
Ohio
725.566
33.945
4.7
Oklahoma
144.793
7.125
4.9
Oregon
165.835
12.235
7.4
Pennsylvania
717.125
26.456
3.7
Rhode Island
94.292
4.362
4.6
South Carolina
99.638
10.145
10.2
South Dakota
21.207
2.294
10.8
Tennessee
190.892
12.972
6.8
Texas
484.652
49.467
10.2
Utah
75.356
7.333
9.7
Vermont
47.197
1.622
3.4
Virginia
157.763
15.749
10.0
Washington
379.058
22.749
6.0
West Virginia
109.813
4.613
4.2
Wisconsin
312.846
14.534
4.6
Wyoming
18.429
1.536
8.3
Subtotal, 50 States and District of Columbia
16,232.943 16,232.943
923.150 923.150
5.7 5.7
Territories and Tribal Set-Aside Territories and Tribal Set-Aside
277.497 277.497
74.850 74.850
27.0 27.0
Technical Assistance Technical Assistance
2.000 2.000
Totals
16,510.439
1,000.000
6.1
Source: Congressional Research Service (CRS) estimates based on data from the U.S. Department of Health Congressional Research Service (CRS) estimates based on data from the U.S. Department of Health
and Human Services (HHS) and the U.S. Census Bureau. and Human Services (HHS) and the U.S. Census Bureau.
Notes: These estimates are based on specific sources of information. If the HHS uses different data, the These estimates are based on specific sources of information. If the HHS uses different data, the
al ocations to the states would likely also differ.al ocations to the states would likely also differ. The “state family assistance grant” shown in the table for the 50 The “state family assistance grant” shown in the table for the 50
states and the District of Columbia reflects the state family assistance grant minus the amount used for tribal states and the District of Columbia reflects the state family assistance grant minus the amount used for tribal
TANF grants in FY2019 (the last year for which actual data are available) and are taken from HHS, TANF grants in FY2019 (the last year for which actual data are available) and are taken from HHS,
Administration for Children and Families, FY2021 Justification of Estimates for Appropriations Committees. The Administration for Children and Families, FY2021 Justification of Estimates for Appropriations Committees. The
expenditure information used to calculate expenditure information used to calculatePandemic Emergency Assistance Fundpandemic emergency assistance estimates is from estimates is from the FY2019 the FY2019
expenditure data reported to HHS under Section 411 of the Social Security Act and posted to the HHS website expenditure data reported to HHS under Section 411 of the Social Security Act and posted to the HHS website
on October 22, 2020. The expenditure categories are based on form ACF-196-R, and the expenditures used on October 22, 2020. The expenditure categories are based on form ACF-196-R, and the expenditures used
were the sum of the fol owing reported categories: (1) basic assistance, (2) non-recurrent short-term benefits, were the sum of the fol owing reported categories: (1) basic assistance, (2) non-recurrent short-term benefits,
and (3) emergency assistance authorized solely under prior(3) emergency assistance authorized solely under prior law, and (4) emergency services authorized solely under
prior law. (Prior law refers to the legal context before PRWORA was enacted.) The child population data used law. (Prior law refers to the legal context before PRWORA was enacted.) The child population data used
to calculate Pandemic Emergency Assistanceto calculate Pandemic Emergency Assistance Fund estimates are the state resident population estimates for July Fund estimates are the state resident population estimates for July
1, 2019, released in June 2020. 1, 2019, released in June 2020.
Congressional Research Service 6 TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief Use of Funds
States, territories, and tribes may use funds provided under the HouseStates, territories, and tribes may use funds provided under the House Budget Committee-
reported-passed legislation only for legislation only for
non-recurrent short-term benefits and the administrative costs of non-recurrent short-term benefits and the administrative costs of
Congressional Research Service
6
TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
providing them. Non-recurrent short-term benefits are defined in OMB-approved Form ACF-providing them. Non-recurrent short-term benefits are defined in OMB-approved Form ACF-
196R.196R.1314 This form’s instructions This form’s instructions
define the benefits as short-term benefits being made: define the benefits as short-term benefits being made:
To families in the form of cash, vouchers, subsidies, or similar form of payment to deal To families in the form of cash, vouchers, subsidies, or similar form of payment to deal
with a specific crisis with a specific crisis situation or episode of need and excluded from the definitionsituation or episode of need and excluded from the definition of of
assistance on that basis. This category includes [state] expenditures such as emergency assistance on that basis. This category includes [state] expenditures such as emergency
assistance and diversion payments, emergency housing and short-term homelessness assistance and diversion payments, emergency housing and short-term homelessness
assistance, emergency food aid, short-term utilities payments, burial assistance, clothing assistance, emergency food aid, short-term utilities payments, burial assistance, clothing
allowances, and back-to-school payments.allowances, and back-to-school payments.1415
In FY2019, states spent more than $955 mil ion in total on non-recurrent short-term benefits In FY2019, states spent more than $955 mil ion in total on non-recurrent short-term benefits
using federal TANF and state MOE funding. Non-recurrent short-term benefits are sometimes using federal TANF and state MOE funding. Non-recurrent short-term benefits are sometimes
provided in lieu of basic assistance, though states may provide such benefits to recipients in provided in lieu of basic assistance, though states may provide such benefits to recipients in
addition to ongoing basic assistance. As with ongoing basic assistance, states determine whether a addition to ongoing basic assistance. As with ongoing basic assistance, states determine whether a
family qualifies as financial y needy and the amount of non-recurrent short-term assistance. family qualifies as financial y needy and the amount of non-recurrent short-term assistance.
The exclusion of non-recurrent short-term benefits from the definition of assistance means these The exclusion of non-recurrent short-term benefits from the definition of assistance means these
benefits are not subject to a number of provisions applicable to basic assistance under TANF. For benefits are not subject to a number of provisions applicable to basic assistance under TANF. For
example, example,
the federal TANF time limit on assistance does not apply to non-recurrent short- the federal TANF time limit on assistance does not apply to non-recurrent short-
term benefits (the time limit general y bars states from using federal TANF funds term benefits (the time limit general y bars states from using federal TANF funds
to provide assistance to a family containing an adult who has already received to provide assistance to a family containing an adult who has already received
five years of assistance); five years of assistance);
recipients of non-recurrent short-term benefits do not count toward the federal recipients of non-recurrent short-term benefits do not count toward the federal
TANF work requirement, under which states must assess, engage, sanction, and TANF work requirement, under which states must assess, engage, sanction, and
meet numerical work activity participation rates for families receiving assistance; meet numerical work activity participation rates for families receiving assistance;
recipients of non-recurrent short-term benefits are not required to cooperate with recipients of non-recurrent short-term benefits are not required to cooperate with
child support enforcement and assign (i.e., legal y turn over) their child support child support enforcement and assign (i.e., legal y turn over) their child support
to the state, as is general yto the state, as is general y required for families receiving TANF assistance; required for families receiving TANF assistance;
TANF prohibitions on providing assistance to unwed teenaged parents who are TANF prohibitions on providing assistance to unwed teenaged parents who are
not living in an adult-supervised setting, teenagers who have not completed high not living in an adult-supervised setting, teenagers who have not completed high
school and are not making satisfactory progress toward doing so, individuals who school and are not making satisfactory progress toward doing so, individuals who
have been convicted of a felony drug offense, and fugitive felons and parole have been convicted of a felony drug offense, and fugitive felons and parole
violators do not apply to non-recurrent short-term benefits; however, lawful violators do not apply to non-recurrent short-term benefits; however, lawful
permanent residents who entered the United States within the past five years, permanent residents who entered the United States within the past five years,
nonimmigrants, and unauthorized aliens are ineligible for these and other TANF nonimmigrants, and unauthorized aliens are ineligible for these and other TANF
benefits; and benefits; and
states are not required to provide the federal government with certain information states are not required to provide the federal government with certain information
on recipients of non-recurrent short-term benefits, including caseload counts and on recipients of non-recurrent short-term benefits, including caseload counts and
recipient-level information, such as demographics, work activity hours, and recipient-level information, such as demographics, work activity hours, and
financial circumstances, on families receiving assistance. financial circumstances, on families receiving assistance.
States would be limited to using no more than 15% of the al ocations from the Pandemic
Emergency Assistance Fund for administrative costs. Tribes and territories would be exempt from
this limit.
1314 T here is also a regulatory definition of non-recurrent short-term benefits at 45 C.F.R. §260.31(b)(1). T hat definition T here is also a regulatory definition of non-recurrent short-term benefits at 45 C.F.R. §260.31(b)(1). T hat definition
is similar, but not identical, to the definition on the ACF-196R. T he legislation specifies that the definition on the ACF-is similar, but not identical, to the definition on the ACF-196R. T he legislation specifies that the definition on the ACF-
196R be used to administer the Pandemic Emergency Assistance Fund. 196R be used to administer the Pandemic Emergency Assistance Fund.
1415 Diversion in this context typically refers to a lump-sum payment offered to families in lieu of ongoing basic T ANF Diversion in this context typically refers to a lump-sum payment offered to families in lieu of ongoing basic T ANF
assistance. assistance.
Congressional Research Service Congressional Research Service
7 7
TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
States would be limited to using no more than 15% of the al ocations from the proposed grant for administrative costs. Tribes and territories would be exempt from this limit. Other Rules Related to the Pandemic Emergency AssistanceFund
To receive their full al otment of funds, states and tribes would be required to inform HHS To receive their full al otment of funds, states and tribes would be required to inform HHS
whether they intend to use their full al otments. States would be required to expend grants from whether they intend to use their full al otments. States would be required to expend grants from
their initial al ocation by September 30, 2022. Funds received through the al otment of unused their initial al ocation by September 30, 2022. Funds received through the al otment of unused
funds would have to be spent within a year. The Housefunds would have to be spent within a year. The House Budget Committee-reported-passed legislation legislation
includes language includes language requiring that the requiring that thePandemic Emergency Assistance Fundpandemic emergency assistance funds be used to be used to
supplement, not supplant, existing federal and state funds used to provide TANF benefits and supplement, not supplant, existing federal and state funds used to provide TANF benefits and
services. HHS is authorized to services. HHS is authorized to
collect data on expenditures made from the funds. collect data on expenditures made from the funds.
Author Information
Gene Falk Gene Falk
Patrick A. Landers Patrick A. Landers
Specialist in Social Policy Specialist in Social Policy
Analyst in Social Policy Analyst in Social Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material. copy or otherwise use copyrighted material.
Congressional Research Service Congressional Research Service
R46692 R46692 · VERSION1 · NEW2 · UPDATED
8 8
Proposed COVID-19 Pandemic Economic
Gene Falk
Relief: In Brief
Specialist in Social Policy Specialist in Social Policy
The Temporary Assistance for Needy Families (TANF) block grant provides grants to states, The Temporary Assistance for Needy Families (TANF) block grant provides grants to states,
Patrick A. Landers
territories, and American Indian tribes to help finance a wide range of benefits and services for territories, and American Indian tribes to help finance a wide range of benefits and services for
Analyst in Social Policy Analyst in Social Policy
needy families with children. On February needy families with children. On February
billion TANF billion TANF
The primary TANF funding stream, the state family assistance block grant, provides states a set dollar amount determined by The primary TANF funding stream, the state family assistance block grant, provides states a set dollar amount determined by
a formula established in law by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA; a formula established in law by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA;
P.L. 104-193). This amount is not adjusted for inflation, population shifts, or any other changes that have transpired since the P.L. 104-193). This amount is not adjusted for inflation, population shifts, or any other changes that have transpired since the
mid-1990s. States are required to expend a minimum amount of their own funds, known as the state maintenance-of-effort mid-1990s. States are required to expend a minimum amount of their own funds, known as the state maintenance-of-effort
(MOE) requirement, on the TANF-related population and TANF-related programs. This amount also has not changed since (MOE) requirement, on the TANF-related population and TANF-related programs. This amount also has not changed since
the mid-1990s. In recent years, Congress has also appropriated funding to the TANF contingency fund, which was first the mid-1990s. In recent years, Congress has also appropriated funding to the TANF contingency fund, which was first
established in 1996 as a source of additional funding in the event of an economic downturn and provides matching grants to established in 1996 as a source of additional funding in the event of an economic downturn and provides matching grants to
states meeting certain requirements. In total, states expended $30.9 billion in federal TANF grants to states and state MOE states meeting certain requirements. In total, states expended $30.9 billion in federal TANF grants to states and state MOE
funds in FY2019. TANF funds can be used to provide a variety of benefits and services, including ongoing basic economic funds in FY2019. TANF funds can be used to provide a variety of benefits and services, including ongoing basic economic
assistance; emergency, short-term aid; work, education, and training activities; child care and other work supports; and social assistance; emergency, short-term aid; work, education, and training activities; child care and other work supports; and social
services. States vary widely in how they use federal TANF grants and state MOE funds. services. States vary widely in how they use federal TANF grants and state MOE funds.
Under the House Under the House
provide $1 billion to states, territories, and tribes to supplement other TANF funding. Initial grants would be made to states provide $1 billion to states, territories, and tribes to supplement other TANF funding. Initial grants would be made to states
up to a set allocation amount. The U.S. Department of Health and Human Services (HHS) would be given $2 million for up to a set allocation amount. The U.S. Department of Health and Human Services (HHS) would be given $2 million for
federal administration and to help provide technical assistance to states, territories, and tribes. After the amount for technical federal administration and to help provide technical assistance to states, territories, and tribes. After the amount for technical
remaining funds would be allotted to the 50 states and District of Columbia. The state funding would be initially allocated as remaining funds would be allotted to the 50 states and District of Columbia. The state funding would be initially allocated as
follows: 50% would be allocated by each state’s share of the total child population, and 50% would be allocated by each follows: 50% would be allocated by each state’s share of the total child population, and 50% would be allocated by each
benefits. These short-term benefits address a specific crisis situation or episode of need and can be provided in cash or non-. These short-term benefits address a specific crisis situation or episode of need and can be provided in cash or non-
cash forms (e.g., payment vouchers for emergency housing or food aid). Non-recurrent short-term benefits are not subject to cash forms (e.g., payment vouchers for emergency housing or food aid). Non-recurrent short-term benefits are not subject to
a number of provisions applicable to basic assistance under TANF (e.g., time limits, work requirements, child support a number of provisions applicable to basic assistance under TANF (e.g., time limits, work requirements, child support
requirements). requirements).
Congressional Research Service Congressional Research Service
link to page 4 link to page 4 link to page 5 link to page 6 link to page link to page 4 link to page 4 link to page 5 link to page 6 link to page
Contents
Introduction ................................................................................................................... 1
TANF Funding ............................................................................................................... 1
How TANF Funds Are Used........................................................................................ 2
TANF and Economic Downturns ................................................................................. 3
Proposed TANF Pandemic Emergency Assistance
Funding Allocation ....................................................................................................
Use of Funds.............................................................................................................
Other Rules Related to the Pandemic Emergency Assistance
Figures
Figure 1. Uses of TANF Funds by Spending Category, FY2019..............................................
Tables
Table 1. Estimated Initial Al ocations for a Proposed Temporary Assistance for Needy
Families (TANF) Grant to Provide Pandemic Emergency Assistance
Contacts
Author Information ......................................................................................................... 8
Congressional Research Service Congressional Research Service
TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
Introduction
The Temporary Assistance for Needy Families (TANF) block grant provides grants to states, The Temporary Assistance for Needy Families (TANF) block grant provides grants to states,
territories, and American Indian tribes to help finance a wide range of benefits and services territories, and American Indian tribes to help finance a wide range of benefits and services
related to ameliorating the effects of, and addressing the root causes of, economic disadvantage related to ameliorating the effects of, and addressing the root causes of, economic disadvantage
among families with children. It is best known for providing ongoing economic assistance to among families with children. It is best known for providing ongoing economic assistance to
families with children, but it also funds emergency, short-term aid; child care; employment and families with children, but it also funds emergency, short-term aid; child care; employment and
training programs for assistance recipients as wel as other eligible parents or youth; and social training programs for assistance recipients as wel as other eligible parents or youth; and social
services. services.
In 2020, five separate laws were enacted to address the economic fal out from the Coronavirus In 2020, five separate laws were enacted to address the economic fal out from the Coronavirus
Disease 2019 (COVID-19) pandemic and provide economic relief.1 No additional funding for Disease 2019 (COVID-19) pandemic and provide economic relief.1 No additional funding for
TANF was provided in any of those measures, though the Department of Health and Human TANF was provided in any of those measures, though the Department of Health and Human
Services (HHS) announced it would provide relief from penalties under existing law to states that Services (HHS) announced it would provide relief from penalties under existing law to states that
failed to meet TANF work participation standards.2 failed to meet TANF work participation standards.2
President Biden proposed $1 bil ion in additional TANF funding to help finance additional cash President Biden proposed $1 bil ion in additional TANF funding to help finance additional cash
assistance as part of his American Rescue Plan.3 On February assistance as part of his American Rescue Plan.3 On February
Section Section
date, the Senate had not yet moved to consider similar legislation as part of the budget date, the Senate had not yet moved to consider similar legislation as part of the budget
TANF Funding
TANF was created in the Personal Responsibility and Work Opportunity Reconciliation Act of TANF was created in the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (PRWORA, P.L. 104-193). Before PRWORA, economic assistance to needy families with 1996 (PRWORA, P.L. 104-193). Before PRWORA, economic assistance to needy families with
children was provided through a federal-state matching grant program. Under that program (Aid children was provided through a federal-state matching grant program. Under that program (Aid
to Families with Dependent Children [AFDC]), funding was not limited, and federal grants to Families with Dependent Children [AFDC]), funding was not limited, and federal grants
reimbursed states for a share of their expenditures. Those expenditures were determined by, and reimbursed states for a share of their expenditures. Those expenditures were determined by, and
changed according to, the number of families receiving assistance and the benefit amounts they changed according to, the number of families receiving assistance and the benefit amounts they
received. received.
PRWORA converted funding for AFDC and related programs into the TANF block grant, with the PRWORA converted funding for AFDC and related programs into the TANF block grant, with the
bulk of funding in the state family assistance grant. The state family assistance grant provides bulk of funding in the state family assistance grant. The state family assistance grant provides
1 For more information, see CRS Report R46460, 1 For more information, see CRS Report R46460, Fiscal Policy and Recovery from the COVID-19 Recession. .
2 U.S. Department of Health and Human Services (HHS), Administration for Children and Families, Office of Family 2 U.S. Department of Health and Human Services (HHS), Administration for Children and Families, Office of Family
Assistance, Assistance, Questions and Answers about TANF and the Coronavirus Disease 2019 (COVID -19) Pandem ic, T ANF-, T ANF-
ACF-PI-2020-01, March 2020, https://www.acf.hhs.gov/ofa/policy-guidance/tanf-acf-pi-2020-01-questions-and-ACF-PI-2020-01, March 2020, https://www.acf.hhs.gov/ofa/policy-guidance/tanf-acf-pi-2020-01-questions-and-
answers-about -tanf-and-coronavirus-disease. answers-about -tanf-and-coronavirus-disease.
3 T he White House, “ President Biden Announces American Rescue Plan,” January 20, 2021, at 3 T he White House, “ President Biden Announces American Rescue Plan,” January 20, 2021, at
https://www.whitehouse.gov/briefing-room/legislation/2021/01/20/president -biden-announces-american-rescue-plan/. https://www.whitehouse.gov/briefing-room/legislation/2021/01/20/president -biden-announces-american-rescue-plan/.
from the House Committee on Ways and Means on February 10, 2021from the House Committee on Ways and Means on February 10, 2021
. T he House Budget Committee included this legislative language in its reported version of H.R. 1319. 5 For information on budget reconciliation, see CRS Report R44058, 5 For information on budget reconciliation, see CRS Report R44058, The Budget Reconciliation Process: Stages of
Consideration. For information on the budget resolution for FY2021, which contains reconciliation directives, see CRS . For information on the budget resolution for FY2021, which contains reconciliation directives, see CRS
Report R46675, Report R46675, S.Con.Res. 5: The Budget Resolution for FY2021 . .
Congressional Research Service Congressional Research Service
1 1
link to page link to page
states a set dollar amount determined by a formula established in the law. It does not change according to the number of families receiving assistance or benefit amounts. Additional y, the according to the number of families receiving assistance or benefit amounts. Additional y, the
funding levels for the state family assistance grant provided by PRWORA have not been funding levels for the state family assistance grant provided by PRWORA have not been
increased for inflation, population, or other changes that have transpired since the mid-1990s. The increased for inflation, population, or other changes that have transpired since the mid-1990s. The
state family assistance grant totaled $16.5 bil ion in FY2019. In addition to expending federal state family assistance grant totaled $16.5 bil ion in FY2019. In addition to expending federal
TANF grants, TANF requires states to make expenditures from their own funds on TANF or TANF grants, TANF requires states to make expenditures from their own funds on TANF or
TANF-related programs. This requirement, known as the state maintenance-of-effort (MOE) TANF-related programs. This requirement, known as the state maintenance-of-effort (MOE)
requirement, is also a set amount that has not been adjusted for changes since the mid-1990s.6 requirement, is also a set amount that has not been adjusted for changes since the mid-1990s.6
How TANF Funds Are Used
Figure 1 shows how the $30.9 bil ion in federal TANF grants to states and state MOE funds was shows how the $30.9 bil ion in federal TANF grants to states and state MOE funds was
expended, or transferred to other block grant programs, in FY2019. Ongoing basic economic expended, or transferred to other block grant programs, in FY2019. Ongoing basic economic
Other common uses included child care, work and training programs, refundable tax credits, pre-Other common uses included child care, work and training programs, refundable tax credits, pre-
kindergarten programs, programs to provide services to children who have been abused and kindergarten programs, programs to provide services to children who have been abused and
neglected or are at risk of abuse or neglect, emergency and short-term benefits, and other services neglected or are at risk of abuse or neglect, emergency and short-term benefits, and other services
(youth, responsible fatherhood, and healthy marriage promotion activities). (youth, responsible fatherhood, and healthy marriage promotion activities).
States have broad discretion within TANF, and their use of federal TANF grants and state MOE States have broad discretion within TANF, and their use of federal TANF grants and state MOE
funds varies considerably. For example, the share of total expenditures devoted to basic assistance funds varies considerably. For example, the share of total expenditures devoted to basic assistance
ranged from a low of 3.6% (Indiana) to a high of 69.3% (Kentucky) in FY2019. Work, education, ranged from a low of 3.6% (Indiana) to a high of 69.3% (Kentucky) in FY2019. Work, education,
and training expenditures varied from a low of 0.2% (Arizona) to a high of 26.9% (California). and training expenditures varied from a low of 0.2% (Arizona) to a high of 26.9% (California).
Eight states and the District of Columbia reported no TANF expenditures on child welfare, while Eight states and the District of Columbia reported no TANF expenditures on child welfare, while
three states (Arizona, Georgia, and North Dakota) al ocated more than half their federal TANF three states (Arizona, Georgia, and North Dakota) al ocated more than half their federal TANF
grant and state MOE funds to this purpose.7 grant and state MOE funds to this purpose.7
6 For additional details on T ANF financing, see CRS Report RL32748, 6 For additional details on T ANF financing, see CRS Report RL32748, The Temporary Assistance for Needy Families
(TANF) Block Grant: A Prim er on TANF Financing and Federal Requirem ents. .
7 For data on FY2019 T ANF expenditures by category and state, see T able B-1 and T able B-2 in CRS Report 7 For data on FY2019 T ANF expenditures by category and state, see T able B-1 and T able B-2 in CRS Report
RL32760, RL32760, The Tem porary Assistance for Needy Fam ilies (TANF) Block Grant: Responses to Frequently Asked
Questions. .
Congressional Research Service Congressional Research Service
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TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
Figure 1. Uses of TANF Funds by Spending Category, FY2019 (Dol ars in bil ions) Source: Congressional Research Service (CRS), based on data posted to the U.S. Department of Health and Human Services (HHS) website on October 22, 2020. Notes: Categories may not add to total because of rounding. Excludes TANF funds used in the territories and in Categories may not add to total because of rounding. Excludes TANF funds used in the territories and in
tribal TANF programs. tribal TANF programs.
TANF and Economic Downturns
To provide states with additional funding in the event of an economic downturn, PRWORA To provide states with additional funding in the event of an economic downturn, PRWORA
established a $2 bil ion TANF contingency fund. This fund provides matching grants to states if established a $2 bil ion TANF contingency fund. This fund provides matching grants to states if
unemployment, or high and increasing caseloads in the Supplemental Nutrition Assistance unemployment, or high and increasing caseloads in the Supplemental Nutrition Assistance
Program (SNAP). The contingency fund al ows grants to be used for any TANF benefit or Program (SNAP). The contingency fund al ows grants to be used for any TANF benefit or
service. service.
The original $2 bil ion appropriation to the TANF contingency fund was exhausted during the The original $2 bil ion appropriation to the TANF contingency fund was exhausted during the
period of high unemployment associated with the 2007-2009 recession. Since then, Congress has period of high unemployment associated with the 2007-2009 recession. Since then, Congress has
funded the contingency fund with annual appropriations. The FY2021 appropriation to the funded the contingency fund with annual appropriations. The FY2021 appropriation to the
contingency fund is $608 mil ion, an amount expected to be exhausted in spring 2021.8 contingency fund is $608 mil ion, an amount expected to be exhausted in spring 2021.8
In 2009, facing the exhaustion of the contingency fund and other concerns about its eligibility In 2009, facing the exhaustion of the contingency fund and other concerns about its eligibility
criteria and uses, Congress established the Emergency Contingency Fund (ECF) in the American criteria and uses, Congress established the Emergency Contingency Fund (ECF) in the American
states, territories, and tribes finance increased expenditures for basic assistance, non-recurrent states, territories, and tribes finance increased expenditures for basic assistance, non-recurrent
short-term aid, and subsidized employment. The ECF expired on September 30, 2010. It was not short-term aid, and subsidized employment. The ECF expired on September 30, 2010. It was not
reauthorized, nor has it received additional funding. reauthorized, nor has it received additional funding.
states, territories, and tribes finance non-recurrent short-term benefits. The legislation would states, territories, and tribes finance non-recurrent short-term benefits. The legislation would
Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI),
and Indian tribes.10 American Samoa and CNMI do not operate regular TANF programs. Their and Indian tribes.10 American Samoa and CNMI do not operate regular TANF programs. Their
funds would be directed to the agency that administers most of the local human services programs funds would be directed to the agency that administers most of the local human services programs
in those territories. in those territories.
Funding Allocation
Under the HouseUnder the House
up to a set al ocation amount. HHS would be given $2 mil ion for federal administration and to up to a set al ocation amount. HHS would be given $2 mil ion for federal administration and to
help provide technical assistance to states, territories, and tribes. After the amount for technical help provide technical assistance to states, territories, and tribes. After the amount for technical
assistance is set aside, assistance is set aside, 7.5% of the remaining funds would be provided to the territories and
50% of funds would be al ocated based on each state’s total child (under age 18) 50% of funds would be al ocated based on each state’s total child (under age 18)
population as a percentage of the total child population of the 50 states and population as a percentage of the total child population of the 50 states and
District of Columbia; and District of Columbia; and
50% of funds would be al ocated based on each state’s FY2019 expenditures on 50% of funds would be al ocated based on each state’s FY2019 expenditures on
basic assistance, non-recurrent short-term benefits, basic assistance, non-recurrent short-term benefits,
emergency emergency
in the 50 states and District of Columbia.12 in the 50 states and District of Columbia.12
Under the proposed Under the proposed
would be real ocated to other states. Thus, after the real ocation of unused funds, the actual would be real ocated to other states. Thus, after the real ocation of unused funds, the actual
Table 1 provides the Congressional Research Service’s estimates of the initial al ocationprovides the Congressional Research Service’s estimates of the initial al ocation
legislative process. The data used in providing the al ocation estimates are discussed in the note legislative process. The data used in providing the al ocation estimates are discussed in the note
The table shows these estimates relative to the TANF state family assistance grant. Its final The table shows these estimates relative to the TANF state family assistance grant. Its final
column shows how much pandemic emergency assistance column shows how much pandemic emergency assistance
above the amount provided by the state family assistance grant. above the amount provided by the state family assistance grant.
10 T he funds provided to Puerto Rico, Guam, and the U.S. Virgin Islands would be excluded from the statutory (Section 1108 of the Social Security Act) limits on public assistance funding provided to these jurisdictions. 11 Funding to territories and tribes would be allocated as the HHS Secretary deems appropriate based on the needs of 11 Funding to territories and tribes would be allocated as the HHS Secretary deems appropriate based on the needs of
the territory or tribe involved. the territory or tribe involved.
12 Non-recurrent short-term benefits12 Non-recurrent short-term benefits
category “Emergency and Shortcategory “Emergency and Short
Emergency
Pandemic
Assistance
Emergency
a Percentage
Assistance
Allocation
State
16,232.943 16,232.943
923.150 923.150
5.7 5.7
Territories and Tribal Set-Aside Territories and Tribal Set-Aside
277.497 277.497
74.850 74.850
27.0 27.0
Technical Assistance Technical Assistance
2.000 2.000
Totals
16,510.439
1,000.000
6.1
Source: Congressional Research Service (CRS) estimates based on data from the U.S. Department of Health Congressional Research Service (CRS) estimates based on data from the U.S. Department of Health
and Human Services (HHS) and the U.S. Census Bureau. and Human Services (HHS) and the U.S. Census Bureau.
Notes: These estimates are based on specific sources of information. If the HHS uses different data, the These estimates are based on specific sources of information. If the HHS uses different data, the
al ocations to the states would likely also differ.al ocations to the states would likely also differ.
states and the District of Columbia reflects the state family assistance grant minus the amount used for tribal states and the District of Columbia reflects the state family assistance grant minus the amount used for tribal
TANF grants in FY2019 (the last year for which actual data are available) and are taken from HHS, TANF grants in FY2019 (the last year for which actual data are available) and are taken from HHS,
Administration for Children and Families, FY2021 Justification of Estimates for Appropriations Committees. The Administration for Children and Families, FY2021 Justification of Estimates for Appropriations Committees. The
expenditure information used to calculate expenditure information used to calculate
expenditure data reported to HHS under Section 411 of the Social Security Act and posted to the HHS website expenditure data reported to HHS under Section 411 of the Social Security Act and posted to the HHS website
on October 22, 2020. The expenditure categories are based on form ACF-196-R, and the expenditures used on October 22, 2020. The expenditure categories are based on form ACF-196-R, and the expenditures used
were the sum of the fol owing reported categories: (1) basic assistance, (2) non-recurrent short-term benefits, were the sum of the fol owing reported categories: (1) basic assistance, (2) non-recurrent short-term benefits,
and (3) emergency assistance authorized solely under prior(3) emergency assistance authorized solely under prior
to calculate Pandemic Emergency Assistanceto calculate Pandemic Emergency Assistance
1, 2019, released in June 2020. 1, 2019, released in June 2020.
Congressional Research Service 6 TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief Use of Funds
States, territories, and tribes may use funds provided under the HouseStates, territories, and tribes may use funds provided under the House
To families in the form of cash, vouchers, subsidies, or similar form of payment to deal To families in the form of cash, vouchers, subsidies, or similar form of payment to deal
with a specific crisis with a specific crisis situation or episode of need and excluded from the definitionsituation or episode of need and excluded from the definition
assistance on that basis. This category includes [state] expenditures such as emergency assistance on that basis. This category includes [state] expenditures such as emergency
assistance and diversion payments, emergency housing and short-term homelessness assistance and diversion payments, emergency housing and short-term homelessness
assistance, emergency food aid, short-term utilities payments, burial assistance, clothing assistance, emergency food aid, short-term utilities payments, burial assistance, clothing
allowances, and back-to-school payments.allowances, and back-to-school payments.
In FY2019, states spent more than $955 mil ion in total on non-recurrent short-term benefits In FY2019, states spent more than $955 mil ion in total on non-recurrent short-term benefits
using federal TANF and state MOE funding. Non-recurrent short-term benefits are sometimes using federal TANF and state MOE funding. Non-recurrent short-term benefits are sometimes
provided in lieu of basic assistance, though states may provide such benefits to recipients in provided in lieu of basic assistance, though states may provide such benefits to recipients in
addition to ongoing basic assistance. As with ongoing basic assistance, states determine whether a addition to ongoing basic assistance. As with ongoing basic assistance, states determine whether a
family qualifies as financial y needy and the amount of non-recurrent short-term assistance. family qualifies as financial y needy and the amount of non-recurrent short-term assistance.
The exclusion of non-recurrent short-term benefits from the definition of assistance means these The exclusion of non-recurrent short-term benefits from the definition of assistance means these
benefits are not subject to a number of provisions applicable to basic assistance under TANF. For benefits are not subject to a number of provisions applicable to basic assistance under TANF. For
example, example,
the federal TANF time limit on assistance does not apply to non-recurrent short- the federal TANF time limit on assistance does not apply to non-recurrent short-
term benefits (the time limit general y bars states from using federal TANF funds term benefits (the time limit general y bars states from using federal TANF funds
five years of assistance); five years of assistance);
recipients of non-recurrent short-term benefits do not count toward the federal recipients of non-recurrent short-term benefits do not count toward the federal
TANF work requirement, under which states must assess, engage, sanction, and TANF work requirement, under which states must assess, engage, sanction, and
meet numerical work activity participation rates for families receiving assistance; meet numerical work activity participation rates for families receiving assistance;
recipients of non-recurrent short-term benefits are not required to cooperate with recipients of non-recurrent short-term benefits are not required to cooperate with
child support enforcement and assign (i.e., legal y turn over) their child support child support enforcement and assign (i.e., legal y turn over) their child support
to the state, as is general yto the state, as is general y
TANF prohibitions on providing assistance to unwed teenaged parents who are TANF prohibitions on providing assistance to unwed teenaged parents who are
not living in an adult-supervised setting, teenagers who have not completed high not living in an adult-supervised setting, teenagers who have not completed high
school and are not making satisfactory progress toward doing so, individuals who school and are not making satisfactory progress toward doing so, individuals who
have been convicted of a felony drug offense, and fugitive felons and parole have been convicted of a felony drug offense, and fugitive felons and parole
permanent residents who entered the United States within the past five years, permanent residents who entered the United States within the past five years,
nonimmigrants, and unauthorized aliens are ineligible for these and other TANF nonimmigrants, and unauthorized aliens are ineligible for these and other TANF
benefits; and benefits; and
states are not required to provide the federal government with certain information states are not required to provide the federal government with certain information
on recipients of non-recurrent short-term benefits, including caseload counts and on recipients of non-recurrent short-term benefits, including caseload counts and
recipient-level information, such as demographics, work activity hours, and recipient-level information, such as demographics, work activity hours, and
financial circumstances, on families receiving assistance. financial circumstances, on families receiving assistance.
is similar, but not identical, to the definition on the ACF-196R. T he legislation specifies that the definition on the ACF-is similar, but not identical, to the definition on the ACF-196R. T he legislation specifies that the definition on the ACF-
196R be used to administer the Pandemic Emergency Assistance Fund. 196R be used to administer the Pandemic Emergency Assistance Fund.
assistance. assistance.
Congressional Research Service Congressional Research Service
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TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
States would be limited to using no more than 15% of the al ocations from the proposed grant for administrative costs. Tribes and territories would be exempt from this limit. Other Rules Related to the Pandemic Emergency Assistance
To receive their full al otment of funds, states and tribes would be required to inform HHS To receive their full al otment of funds, states and tribes would be required to inform HHS
whether they intend to use their full al otments. States would be required to expend grants from whether they intend to use their full al otments. States would be required to expend grants from
funds would have to be spent within a year. The Housefunds would have to be spent within a year. The House
includes language includes language requiring that the requiring that the
supplement, not supplant, existing federal and state funds used to provide TANF benefits and supplement, not supplant, existing federal and state funds used to provide TANF benefits and
Author Information
Gene Falk Gene Falk
Patrick A. Landers Patrick A. Landers
Specialist in Social Policy Specialist in Social Policy
Analyst in Social Policy Analyst in Social Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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Congressional Research Service Congressional Research Service
R46692 R46692 · VERSION
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