Temporary Assistance for Needy Families and Proposed COVID-19 Pandemic Economic Relief: In Brief
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Temporary Assistance for Needy Families and
March March218, 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 needy families with children. OnFebruary 27March 11, 2021, the , 2021, the House passed the American Rescue Plan American Rescue Plan
Act of 2021 (H.R. 1319), an omnibus budget reconciliation bill that would, among other
provisions, create a Act of 2021
(ARPA; P.L. 117-2) was signed into law. Among other provisions, the legislation establishes a temporary $1 billion TANF fund that states, territories, and tribes can use to provide nonrecurrent
short-term benefitstemporary $1 billion TANF fund to provide non-recurrent short-term
benefits. As of that date, the Senate had not yet 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 downturnestablished in 1996 as a source of additional funding in the event of an economic downturn and provides matching grants to 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-passed bill
Under ARPA, a temporary TANF grant , a temporary TANF grant would provideprovides $1 billion to states, territories, and tribes to supplement $1 billion to states, territories, and tribes to supplement
other TANF funding. Initial grants other TANF funding. Initial grantswould beare made to states up to a set allocation amount. The U.S. Department of Health and made to states up to a set allocation amount. The U.S. Department of Health and
Human Services (HHS) Human Services (HHS)would beis given $2 million given $2 million for federal administration and to help provide technical assistance to for federal administration and to help provide technical assistance to
states, territories, and tribes. After the amount for technical states, territories, and tribes. After the amount for technicalas sistanceassistance is set aside, 7.5% of the remaining funds is set aside, 7.5% of the remaining funds would be
are provided to the territories and Indian tribes and 92.5% of the remaining funds provided to the territories and Indian tribes and 92.5% of the remaining fundswould beare allotted to the 50 states and District allotted to the 50 states and District
of Columbia. The state funding of Columbia. The state fundingwould beis initially allocated as follows: 50% initially allocated as follows: 50% would beis allocated by each state’s share of the allocated by each state’s share of the
total child population, and 50% total child population, and 50%would beis allocated by each state’s share of total FY2019 TANF expenditures on basic allocated by each state’s share of total FY2019 TANF expenditures on basic
assistance, assistance,non-recurrentnonrecurrent short-term benefits, and emergency assistance. States, territories, and tribes short-term benefits, and emergency assistance. States, territories, and tribes couldcan only use this only use this
funding for funding fornon-recurrentnonrecurrent short-term benefits. These short-term benefits address a specific crisis situation or episode of need . These short-term benefits address a specific crisis situation or episode of need
and can be provided in cash or and can be provided in cash ornon-cashnoncash forms (e.g., payment vouchers for emergency housing or food aid). forms (e.g., payment vouchers for emergency housing or food aid). Non-recurrent
Nonrecurrent short-term benefits are not subject to a number of provisions applicable to basic assistance under TANF (e.g., time limits, 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 requirements). work requirements, child support 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 Assistance ................................................................43
Funding Allocation ....................................................................................................43
Use of Funds.............................................................................................................76
Other Rules Related to the Pandemic Emergency Assistance ............................................87
Figures
Figure 1. Uses of TANF Funds by Spending Category, FY2019..............................................32
Tables
Table 1. Estimated Initial Al ocations for a Proposed Temporary Assistance for Needy
Families (TANF) Grant to Provide Pandemic Emergency Assistance ....................................54
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 assistance as part of his American Rescue Plan.3 OnFebruary 27March 11, 2021, the , 2021, the House passed the
American Rescue Plan American Rescue Plan Act of 2021 (ARPA; P.L. 117-2), an omnibus budget reconciliation bil , was enacted.4 Section 9201 of ARPA creates a $1Act (H.R. 1319), an omnibus budget reconciliation bil to the House
chamber. Title IX, Section 9201, of the American Rescue Plan Act of 2021 would create a $1
bil ion temporary TANF grant to supplement other TANF funding.bil ion temporary TANF grant 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 reconciliation process for
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 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 increased for inflation, population, or other changes that have transpired since the mid-1990s. The
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 pandemic emergency assistance was ordered to be sent to the House Budget 4 T he provision creating the T ANF pandemic emergency assistance was ordered to be sent to the House Budget
Committee from the House Committee on Ways and Means on February 10, 2021Committee from the House Committee on Ways and Means on February 10, 2021 . T he House Budget Committee . T he House Budget Committee
included this legislative language in its reported version of H.R. 1319.included this legislative language in its reported version of H.R. 1319.
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
Report R46675, S.Con.Res. 5: The Budget Resolution for FY2021 On February 27, 2021, the House passed its version of H.R. 1319. On March 6, 2021, the Senate passed its version of the legislation. On March 10, 2021, the House concurred with the Senate-passed legislation. .
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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
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
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. requirement, is also a set amount that has not been adjusted for changes since the mid-1990s.65
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.grant and state MOE funds to this purpose.7
66
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 tribal TANF programs.
5 For additional details on T ANF financing, see CRS Report RL32748, 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. .
76 For data on FY2019 T ANF expenditures by category and state, see T able B-1 and T able B-2 in CRS Report 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
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. contingency fund is $608 mil ion, an amount expected to be exhausted in spring 2021.87
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).Recovery and Reinvestment Act (ARRA, P.L. 111-5).98 The ECF was a $5 bil ion fund to help The ECF was a $5 bil ion fund to help
states, territories, and tribes finance increased expenditures for basic assistance, states, territories, and tribes finance increased expenditures for basic assistance,non-recurrentnonrecurrent
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.
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
Proposed TANF Pandemic Emergency Assistance Section 9201 of ARPA creates a temporary TANF grant a temporary TANF grant. It would provide that provides $1 bil ion to help $1 bil ion to help
states, territories, and tribes finance states, territories, and tribes financenon-recurrentnonrecurrent short-term benefits. The short-term benefits. The legislation would
makelaw makes eligible eligible for funds the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. 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.and Indian tribes.10 9 American Samoa and CNMI do not operate regular TANF programs. Their American Samoa and CNMI do not operate regular TANF programs. Their
funds would befunds are directed to directed to
the agency that administers most of the local human services programs the agency that administers most of the local human services programs
in those territories. in those territories.
Funding Allocation
Under Underthe House-passed legislationARPA, initial grants , initial grants would beare made to states up to a set al ocation made to states up to a set al ocation
amount. HHS amount. HHSwould be givenreceives $2 mil ion for federal administration and to help provide technical $2 mil ion for federal administration and to help provide technical
assistance to states, territories, and tribes. After the amount for technical assistance is set aside, assistance to states, territories, and tribes. After the amount for technical assistance is set aside,
7.5% of the remaining funds 7.5% of the remaining fundswould be are provided to the territories and Indian tribes and 92.5% of provided to the territories and Indian tribes and 92.5% of
the remaining funds the remaining funds would beare al otted to the al otted to the
50 states and the District of Columbia.50 states and the District of Columbia.11
Funds to the 50 states and District of Columbia ($923.150 mil ion) would be al ocated as follows:
50% of funds would be10
7 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 appropriat ion to the contingency fund will be exhausted in May 2021. 8 For a discussion of the 2009 T ANF Emergency Contingency Fund, see CRS Report R41078, The TANF Emergency Contingency Fund.
9 T he funds provided to Puerto Rico, Guam, and the U.S. Virgin Islands are excluded from the statutory (Section 1108 of the Social Security Act) limits on public assistance funding provided to these jurisdictions.
10 Funding to territories and tribes are allocated as the HHS Secretary deems appropriate based on the needs of the territory or tribe involved.
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Funds to the 50 states and District of Columbia ($923.150 mil ion) are al ocated as follows:
50% of funds are al ocated based on each state’s total child (under age 18) 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 50% of fundswould beare al ocated based on each state’s FY2019 expenditures on al ocated based on each state’s FY2019 expenditures on
basic assistance, non-recurrentbasic
assistance, nonrecurrent short-term benefits, and emergency assistance as a short-term benefits, and emergency assistance as a
percentage of the total expenditures for these categories in the 50 states and percentage of the total expenditures for these categories in the 50 states and
District of Columbia.District of Columbia.12
Under the proposed grant,11
Pandemic emergency assistance grant monies that are not used by a state monies that are not used by a state would wil be real ocated to other states. be real ocated to other states.
Thus, after the real ocation of unused funds, the actual amounts received by some Thus, after the real ocation of unused funds, the actual amounts received by some states might 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 ocation of the provides the Congressional Research Service’s estimates of the initial al ocation of the
proposed
pandemic emergency assistance TANF grant. These estimates are provided solely to assist in comparisons of the relative TANF grant. These estimates are provided solely to assist in comparisons of the relative
impact of funding levels and alternative formulas in the legislativeimpact of funding levels and alternative formulas in the legislative process. The data used in process. The data used in
providing the al ocation estimates are discussed in the note tproviding the al ocation estimates are discussed in the note to Table 1.13 12
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 The table shows these estimates relative to the TANF state family assistance grant (SFAG). Its final . Its final
column shows how much pandemic emergency assistance grants would increase TANF column shows how much pandemic emergency assistance grants would increase TANFfunding
funding 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
the territory or tribe involved.
12 Non-recurrent short-term benefits and emergency assistance comprise most of the CRS-tabulated category
“Emergency and Short-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
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
Alabama Alabama
$93.007 $93.007
$10.181 $10.181
10.9% 10.9%
Alaska Alaska
44.397 44.397
3.370 3.370
7.6 7.6
Arizona Arizona
199.407 199.407
14.536 14.536
7.3 7.3
Arkansas Arkansas
56.546 56.546
4.717 4.717
8.3 8.3
California California
3,635.563 3,635.563
203.700 203.700
5.6 5.6
Colorado Colorado
135.608 135.608
13.522 13.522
10.0 10.0
Connecticut Connecticut
265.908 265.908
7.088 7.088
2.7 2.7
Delaware Delaware
32.184 32.184
2.070 2.070
6.4 6.4
District of Columbia District of Columbia
92.304 92.304
14.731 14.731
16.0 16.0
Florida Florida
560.484 560.484
35.451 35.451
6.3 6.3
11 Nonrecurrent short-term benefits and emergency assistance comprise most of the CRS-tabulated category “Emergency and Short-T erm Benefits” shown in Figure 1. 12 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 that included “ emergency services” in addition to emergency assistance. Congressional Research Service 4 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 Georgia Georgia
329.650 329.650
21.994 21.994
6.7 6.7
Hawai Hawai
98.578 98.578
4.211 4.211
4.3 4.3
Idaho Idaho
30.307 30.307
3.410 3.410
11.3 11.3
Il inois Il inois
583.126 583.126
20.423 20.423
3.5 3.5
Indiana Indiana
206.117 206.117
10.678 10.678
5.2 5.2
Iowa Iowa
130.558 130.558
6.361 6.361
4.9 4.9
Kansas Kansas
101.478 101.478
5.133 5.133
5.1 5.1
Kentucky Kentucky
180.689 180.689
17.408 17.408
9.6 9.6
Louisiana Louisiana
163.431 163.431
7.908 7.908
4.8 4.8
Maine Maine
76.847 76.847
3.862 3.862
5.0 5.0
Maryland Maryland
228.342 228.342
17.756 17.756
7.8 7.8
Massachusetts Massachusetts
457.855 457.855
27.840 27.840
6.1 6.1
Michigan Michigan
772.794 772.794
19.000 19.000
2.5 2.5
Minnesota Minnesota
259.569 259.569
14.322 14.322
5.5 5.5
Mississippi Mississippi
86.481 86.481
4.744 4.744
5.5 5.5
Missouri Missouri
216.335 216.335
14.519 14.519
6.7 6.7
Montana Montana
37.889 37.889
2.738 2.738
7.2 7.2
Nebraska Nebraska
56.627 56.627
4.446 4.446
7.9 7.9
Nevada Nevada
43.762 43.762
6.798 6.798
15.5 15.5
New Hampshire New Hampshire
38.394 38.394
4.131 4.131
10.8 10.8
New Jersey New Jersey
402.702 402.702
17.244 17.244
4.3 4.3
Congressional Research Service
5
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 New Mexico
109.920 109.920
6.391 6.391
5.8 5.8
New York New York
2,434.869 2,434.869
127.154 127.154
5.2 5.2
North Carolina North Carolina
300.438 300.438
16.802 16.802
5.6 5.6
North Dakota North Dakota
26.313 26.313
1.371 1.371
5.2 5.2
Ohio Ohio
725.566 725.566
33.945 33.945
4.7 4.7
Oklahoma Oklahoma
144.793 144.793
7.125 7.125
4.9 4.9
Oregon Oregon
165.835 165.835
12.235 12.235
7.4 7.4
Pennsylvania Pennsylvania
717.125 717.125
26.456 26.456
3.7 3.7
Rhode Island Rhode Island
94.292 94.292
4.362 4.362
4.6 4.6
South Carolina South Carolina
99.638 99.638
10.145 10.145
10.2 10.2
South Dakota South Dakota
21.207 21.207
2.294 2.294
10.8 10.8
Tennessee Tennessee
190.892 190.892
12.972 12.972
6.8 6.8
Congressional Research Service 5 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 Texas Texas
484.652 484.652
49.467 49.467
10.2 10.2
Utah Utah
75.356 75.356
7.333 7.333
9.7 9.7
Vermont Vermont
47.197 47.197
1.622 1.622
3.4 3.4
Virginia Virginia
157.763 157.763
15.749 15.749
10.0 10.0
Washington Washington
379.058 379.058
22.749 22.749
6.0 6.0
West Virginia West Virginia
109.813 109.813
4.613 4.613
4.2 4.2
Wisconsin Wisconsin
312.846 312.846
14.534 14.534
4.6 4.6
Wyoming Wyoming
18.429 18.429
1.536 1.536
8.3 8.3
Subtotal, 50 States and District of Columbia 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 Totals
16,510.439 16,510.439
1,000.000 1,000.000
6.1 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 al ocations to the stateswouldwill likely also differ. likely also differ. The The “state family assistance grantstate family assistance grant” (SFAG) shown in the table for the 50 shown in the table for the 50
states and the Districtstates and the District of Columbia reflectsof Columbia reflects the state familythe state family assistance grant minus the amount used for tribal 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 pandemic emergency assistance estimates is from the FY2019 expenditure information used to calculate pandemic emergency assistance estimates is from 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) were the sum of the fol owing reported categories: (1) basic assistance, (2)non-recurrentnonrecurrent short-term benefits, short-term benefits,
and (3) emergency assistance authorized solely under priorand (3) emergency assistance authorized solely under prior law. (Prior law refers to the legal context before law. (Prior law refers to the legal context before
PRWORA was enacted.) The child population data used to calculate Pandemic Emergency Assistance Fund PRWORA was enacted.) The child population data used to calculate Pandemic Emergency Assistance Fund
estimates are the state resident population estimates for July 1, 2019, released in June 2020. estimates are the state resident population estimates for July 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 States, territories, and tribes may use TANF funds provided under funds provided underthe House-passed legislation only for
non-recurrent ARPA only for nonrecurrent short-term benefits and the administrative costs of providing them. short-term benefits and the administrative costs of providing them. Non-recurrent
Nonrecurrent short-term benefits are defined in OMB-approved Form ACF-196R.short-term benefits are defined in OMB-approved Form ACF-196R.1413 This form’s instructions This form’s instructions
define the define the
benefits as short-term benefits being made: 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
13 T here is also a regulatory definition of nonrecurrent 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. ARPA specifies that the definition on the ACF-196R be used to administer the Pandemic Emergency Assistance grant. Congressional Research Service 6 TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief 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.1514
In FY2019, states spent more than $955 mil ion in total on In FY2019, states spent more than $955 mil ion in total onnon-recurrentnonrecurrent short-term benefits short-term benefits
using federal TANF and state MOE funding. using federal TANF and state MOE funding.Non-recurrentNonrecurrent short-term benefits are sometimes short-term benefits are sometimes
provided in lieuprovided in lieu of basic assistance, though states may provide such benefits to recipients in 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 family
qualifies as financial y needy and the amount of non-recurrent short-term assistance. qualifies as financial y needy and the amount of non-recurrent short-term assistance.
The exclusion of The exclusion ofnon-recurrentnonrecurrent short-term benefits from the definition of assistance means these 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 the federal TANF time limit on assistance does not apply tonon-recurrentnonrecurrent short- 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 recipients ofnon-recurrentnonrecurrent short-term benefits do not count toward the federal 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 recipients ofnon-recurrentnonrecurrent short-term benefits are not required to cooperate with 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 y required for families receiving TANF assistance; to the state, as is general y 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 on recipients ofnon-recurrentnonrecurrent short-term benefits, including caseload counts and 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.
14 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-
196R be used to administer the Pandemic Emergency Assistance Fund.
15 Diversion in this context typically refers to a lump-sum payment offered to families in lieu of ongoing basic T ANF
assistance.
Congressional Research Service
7
TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
States would be
States are limited to using no more than 15% of the al ocations from the proposed grant for limited to using no more than 15% of the al ocations from the proposed grant for
administrative costs. Tribes and territories administrative costs. Tribes and territorieswould beare exempt from this limit. exempt from this limit.
Other Rules Related to the Pandemic Emergency Assistance
To receive their full al otment of funds, states and tribes To receive their full al otment of funds, states and tribeswould beare required to inform HHS required to inform HHS
whether they whether they intend to use their full al otments. States intend to use their full al otments. Stateswould beare required to expend grants from required to expend grants from
their initialtheir initial al ocational ocation by September 30, 2022. Funds received through the al otment of unused by September 30, 2022. Funds received through the al otment of unused
funds fundswould have to be spent within a year. have to be spent within a year. The House-passed legislationARPA includes language includes language
requiring that the pandemic emergency assistance funds be used to supplement, not supplant, requiring that the pandemic emergency assistance funds be used to supplement, not supplant,
existing federal and state funds used to provide TANF existing federal and state funds used to provide TANF benefits and services.benefits and services. HHS is authorized to
collect data on expenditures made from the funds.
14 Diversion in this context typically refers to a lump-sum payment offered to families in lieu of ongoing basic T ANF assistance. Congressional Research Service 7 TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
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
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Congressional Research Service Congressional Research Service
R46692 R46692 · VERSION24 · UPDATED
8 8
March March
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 needy families with children. On
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 downturnestablished in 1996 as a source of additional funding in the event of an economic downturn
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.
other TANF funding. Initial grants other TANF funding. Initial grants
Human Services (HHS) Human Services (HHS)
states, territories, and tribes. After the amount for technical states, territories, and tribes. After the amount for technical
are provided to the territories and Indian tribes and 92.5% of the remaining funds provided to the territories and Indian tribes and 92.5% of the remaining funds
of Columbia. The state funding of Columbia. The state funding
total child population, and 50% total child population, and 50%
assistance, assistance,
funding for funding for
and can be provided in cash or and can be provided in cash or
Nonrecurrent short-term benefits are not subject to a number of provisions applicable to basic assistance under TANF (e.g., time limits, 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 requirements). work requirements, child support 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 assistance as part of his American Rescue Plan.3 On
American Rescue Plan American Rescue Plan Act of 2021 (ARPA; P.L. 117-2), an omnibus budget reconciliation bil , was enacted.4 Section 9201 of ARPA creates a $1
bil ion temporary TANF grant to supplement other TANF funding.bil ion temporary TANF grant to supplement other TANF funding.
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
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 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 increased for inflation, population, or other changes that have transpired since the mid-1990s. The
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.
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 pandemic emergency assistance was ordered to be sent to the House Budget 4 T he provision creating the T ANF pandemic emergency assistance was ordered to be sent to the House Budget
Committee from the House Committee on Ways and Means on February 10, 2021Committee from the House Committee on Ways and Means on February 10, 2021 . T he House Budget Committee . T he House Budget Committee
included this legislative language in its reported version of H.R. 1319.included this legislative language in its reported version of H.R. 1319.
Congressional Research Service Congressional Research Service
1 1
link to page link to page
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
requirement, is also a set amount that has not been adjusted for changes since the mid-1990s. requirement, is also a set amount that has not been adjusted for changes since the mid-1990s.
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
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
grant and state MOE funds to this purpose.grant and state MOE funds to this purpose.
(TANF) Block Grant: A Prim er on TANF Financing and Federal Requirem ents. .
RL32760, RL32760, The Tem porary Assistance for Needy Fam ilies (TANF) Block Grant: Responses to Frequently Asked
Questions. .
Congressional Research Service Congressional Research Service
2 2
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
contingency fund is $608 mil ion, an amount expected to be exhausted in spring 2021. contingency fund is $608 mil ion, an amount expected to be exhausted in spring 2021.
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
Recovery and Reinvestment Act (ARRA, P.L. 111-5).Recovery and Reinvestment Act (ARRA, P.L. 111-5).
states, territories, and tribes finance increased expenditures for basic assistance, states, territories, and tribes finance increased expenditures for basic assistance,
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 states, territories, and tribes finance
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.and Indian tribes.
Funding Allocation
Under Under
amount. HHS amount. HHS
assistance to states, territories, and tribes. After the amount for technical assistance is set aside, assistance to states, territories, and tribes. After the amount for technical assistance is set aside,
7.5% of the remaining funds 7.5% of the remaining funds
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 50% of funds
percentage of the total expenditures for these categories in the 50 states and percentage of the total expenditures for these categories in the 50 states and
District of Columbia.District of Columbia.
Thus, after the real ocation of unused funds, the actual amounts received by some Thus, after the real ocation of unused funds, the actual amounts received by some states might states might
Table 1 provides the Congressional Research Service’s estimates of the initial al ocation of the provides the Congressional Research Service’s estimates of the initial al ocation of the
providing the al ocation estimates are discussed in the note tproviding the al ocation estimates are discussed in the note to Table 1.
The table shows these estimates relative to the TANF state family assistance grant The table shows these estimates relative to the TANF state family assistance grant (SFAG). Its final . Its final
column shows how much pandemic emergency assistance grants would increase TANF column shows how much pandemic emergency assistance grants would increase TANF
Table 1. Estimated Initial Allocations for a Proposed Temporary Assistance for
Needy Families (TANF) Grant to Provide Pandemic Emergency Assistance
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
Alabama Alabama
$93.007 $93.007
$10.181 $10.181
10.9% 10.9%
Alaska Alaska
44.397 44.397
3.370 3.370
7.6 7.6
Arizona Arizona
199.407 199.407
14.536 14.536
7.3 7.3
Arkansas Arkansas
56.546 56.546
4.717 4.717
8.3 8.3
California California
3,635.563 3,635.563
203.700 203.700
5.6 5.6
Colorado Colorado
135.608 135.608
13.522 13.522
10.0 10.0
Connecticut Connecticut
265.908 265.908
7.088 7.088
2.7 2.7
Delaware Delaware
32.184 32.184
2.070 2.070
6.4 6.4
District of Columbia District of Columbia
92.304 92.304
14.731 14.731
16.0 16.0
Florida Florida
560.484 560.484
35.451 35.451
6.3 6.3
11 Nonrecurrent short-term benefits and emergency assistance comprise most of the CRS-tabulated category “Emergency and Short-T erm Benefits” shown in Figure 1. 12 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 that included “ emergency services” in addition to emergency assistance. Congressional Research Service 4 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 Georgia Georgia
329.650 329.650
21.994 21.994
6.7 6.7
Hawai Hawai
98.578 98.578
4.211 4.211
4.3 4.3
Idaho Idaho
30.307 30.307
3.410 3.410
11.3 11.3
Il inois Il inois
583.126 583.126
20.423 20.423
3.5 3.5
Indiana Indiana
206.117 206.117
10.678 10.678
5.2 5.2
Iowa Iowa
130.558 130.558
6.361 6.361
4.9 4.9
Kansas Kansas
101.478 101.478
5.133 5.133
5.1 5.1
Kentucky Kentucky
180.689 180.689
17.408 17.408
9.6 9.6
Louisiana Louisiana
163.431 163.431
7.908 7.908
4.8 4.8
Maine Maine
76.847 76.847
3.862 3.862
5.0 5.0
Maryland Maryland
228.342 228.342
17.756 17.756
7.8 7.8
Massachusetts Massachusetts
457.855 457.855
27.840 27.840
6.1 6.1
Michigan Michigan
772.794 772.794
19.000 19.000
2.5 2.5
Minnesota Minnesota
259.569 259.569
14.322 14.322
5.5 5.5
Mississippi Mississippi
86.481 86.481
4.744 4.744
5.5 5.5
Missouri Missouri
216.335 216.335
14.519 14.519
6.7 6.7
Montana Montana
37.889 37.889
2.738 2.738
7.2 7.2
Nebraska Nebraska
56.627 56.627
4.446 4.446
7.9 7.9
Nevada Nevada
43.762 43.762
6.798 6.798
15.5 15.5
New Hampshire New Hampshire
38.394 38.394
4.131 4.131
10.8 10.8
New Jersey New Jersey
402.702 402.702
17.244 17.244
4.3 4.3
109.920 109.920
6.391 6.391
5.8 5.8
New York New York
2,434.869 2,434.869
127.154 127.154
5.2 5.2
North Carolina North Carolina
300.438 300.438
16.802 16.802
5.6 5.6
North Dakota North Dakota
26.313 26.313
1.371 1.371
5.2 5.2
Ohio Ohio
725.566 725.566
33.945 33.945
4.7 4.7
Oklahoma Oklahoma
144.793 144.793
7.125 7.125
4.9 4.9
Oregon Oregon
165.835 165.835
12.235 12.235
7.4 7.4
Pennsylvania Pennsylvania
717.125 717.125
26.456 26.456
3.7 3.7
Rhode Island Rhode Island
94.292 94.292
4.362 4.362
4.6 4.6
South Carolina South Carolina
99.638 99.638
10.145 10.145
10.2 10.2
South Dakota South Dakota
21.207 21.207
2.294 2.294
10.8 10.8
Tennessee Tennessee
190.892 190.892
12.972 12.972
6.8 6.8
Congressional Research Service 5 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 Texas Texas
484.652 484.652
49.467 49.467
10.2 10.2
Utah Utah
75.356 75.356
7.333 7.333
9.7 9.7
Vermont Vermont
47.197 47.197
1.622 1.622
3.4 3.4
Virginia Virginia
157.763 157.763
15.749 15.749
10.0 10.0
Washington Washington
379.058 379.058
22.749 22.749
6.0 6.0
West Virginia West Virginia
109.813 109.813
4.613 4.613
4.2 4.2
Wisconsin Wisconsin
312.846 312.846
14.534 14.534
4.6 4.6
Wyoming Wyoming
18.429 18.429
1.536 1.536
8.3 8.3
Subtotal, 50 States and District of Columbia 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 Totals
16,510.439 16,510.439
1,000.000 1,000.000
6.1 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 al ocations to the states
states and the Districtstates and the District
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 pandemic emergency assistance estimates is from the FY2019 expenditure information used to calculate pandemic emergency assistance estimates is from 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) were the sum of the fol owing reported categories: (1) basic assistance, (2)
and (3) emergency assistance authorized solely under priorand (3) emergency assistance authorized solely under prior
PRWORA was enacted.) The child population data used to calculate Pandemic Emergency Assistance Fund PRWORA was enacted.) The child population data used to calculate Pandemic Emergency Assistance Fund
estimates are the state resident population estimates for July 1, 2019, released in June 2020. estimates are the state resident population estimates for July 1, 2019, released in June 2020.
States, territories, and tribes may use States, territories, and tribes may use TANF funds provided under funds provided under
Nonrecurrent short-term benefits are defined in OMB-approved Form ACF-196R.short-term benefits are defined in OMB-approved Form ACF-196R.
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
13 T here is also a regulatory definition of nonrecurrent 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. ARPA specifies that the definition on the ACF-196R be used to administer the Pandemic Emergency Assistance grant. Congressional Research Service 6 TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief 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 In FY2019, states spent more than $955 mil ion in total on
using federal TANF and state MOE funding. using federal TANF and state MOE funding.
provided in lieuprovided in lieu
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
The exclusion of The exclusion of
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 the federal TANF time limit on assistance does not apply to
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 recipients of
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 recipients of
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 y required for families receiving TANF assistance; to the state, as is general y 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 on recipients of
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.
administrative costs. Tribes and territories administrative costs. Tribes and territories
Other Rules Related to the Pandemic Emergency Assistance
To receive their full al otment of funds, states and tribes To receive their full al otment of funds, states and tribes
whether they whether they intend to use their full al otments. States intend to use their full al otments. States
their initialtheir initial
funds funds
existing federal and state funds used to provide TANF existing federal and state funds used to provide TANF benefits and services.benefits and services.
14 Diversion in this context typically refers to a lump-sum payment offered to families in lieu of ongoing basic T ANF assistance. Congressional Research Service 7 TANF and Proposed COVID-19 Pandemic Economic Relief: In Brief
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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