Order Code RL32210
CRS Report for Congress
Received through the CRS Web
TANF Reauthorization: Side-By-Side Comparison
of Current Law and Two Versions of H.R. 4
February 2, 2004
Vee Burke and Gene Falk
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

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TANF Reauthorization: Side-By-Side Comparison of
Current Law and Two Versions of H.R. 4
Summary
The House of Representatives and the Senate Finance Committee have approved
two different versions of a bill to continue funding and revise the block grant
Temporary Assistance for Needy Families (TANF), which was created in the 1996
welfare reform law. H.R. 4 is currently pending to amend TANF and provide
funding for the program through FY2008. The House approved its version of H.R.
4 in February 2003; the Senate Finance Committee reported a substitute bill in
September 2003. The Senate has yet to act on the bill. The 1996 law provided
TANF funding through Fiscal Year (FY) 2002, and a series of laws have provided
temporary extensions of the program. The latest extension runs through March 31,
2004.
The House-passed and Senate Finance Committee bills are very similar in terms
of how they would continue funding under the TANF program. Both bills extend
basic TANF funding at current levels ($16.6 billion for the 50 states, the District of
Columbia, and the territories) through FY2008 and extend supplemental grants
provided to 17 states through FY2007. Both bills also would provide new,
categorical grants for marriage promotion activities. The major difference in the
funding provisions of the two bills is how they would provide extra contingency
(recession-related) funding to the states. The House bill essentially extends the
current law fund that provides matching grants to states that experience high and
increased unemployment rates and food stamp caseloads. The Senate Finance
Committee bill eliminates the requirements that states expend additional money to
access contingency funds, instead basing extra funding on the cost of increased
caseloads for states that meet revised unemployment or food stamp caseload criteria.
The two bills would also substantially revise TANF work participation standards
that states must meet or be subject to a financial penalty. Under current law, 50% of
TANF families with an adult or minor household head must participate, though the
50% rate is reduced by caseload reductions that have occurred since welfare reform.
Both versions of H.R. 4 would raise this standard to 70%, though under both bills the
standard may be reduced through credits (though the credits differ between the two
bills). They also both eliminate a separate 90% participation rate requirement for
two-parent families. Both bills raise the minimum hours required of family members
to be considered full participants, though the House raises them more than does the
Senate Finance Committee bill. The bills also differ in the activities countable
toward the participation standards: the House narrows the list of activities countable,
requiring recipients to spend at least 24 hours in work, community service, or work
experience programs except for a short (usually three month) period when states may
define what counts as activities themselves. The Senate Finance Committee bill
keeps all activities on the current law list, and also allows states to count activities
on an expanded list for three months (six months in some circumstances).
Both bills include non-TANF provisions relating to child support enforcement,
responsible “fatherhood” programs, and transitional medical assistance (not
addressed herein). This report will be updated as needed.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary of the Similarities and Differences of the Two Bills . . . . . . . . . . . . . . . 1
Funding Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Basic Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Supplemental Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Contingency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Uses of Grants and Program Requirements . . . . . . . . . . . . . . . . . . . . . . 3
Work Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Participation Rate Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Hours Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Creditable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Marriage Promotion Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Detailed Comparison of TANF Provisions of the House and Senate
Finance Committee Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Short Title, Findings and Statement of TANF Goals and Purposes . . . . . . . . . . . 7
Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
TANF Financing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
State family assistance grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Supplemental grant for population increases in certain states . . . . . . . . . . . . . . . . 8
Bonus to reward employment achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Bonus to reward reductions in out-of-wedlock births . . . . . . . . . . . . . . . . . . . . . 10
Contingency fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Additional grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Social service capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Repeal of federal loan fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Maintenance of effort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Funding for child care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Use of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
General rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

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Transfer of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Carryover of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Use of funds for education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Direct funding and administration by Indian tribes . . . . . . . . . . . . . . . . . . . . . . . 16
Work Participation Requirements and Standards . . . . . . . . . . . . . . . . . . . . . . . . 16
Universal engagement and family self-sufficiency plan requirements . . . . . . . . 16
Sanctions against individuals for work refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Work participation requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Caseload reduction credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Employment credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Calculation of participation rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Penalty for failing participation rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Countable activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Listed in law or bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
State options for activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Time limits on activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Numerical limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Parents as scholars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Required hours of work activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Partial work credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Extra work credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Marriage Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
TANF goals and purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Funding for marriage promotion matching grants . . . . . . . . . . . . . . . . . . . . . . . . 31
Allowable activities for marriage promotion grants . . . . . . . . . . . . . . . . . . . . . . 33
Research and demonstrations on marriage promotion . . . . . . . . . . . . . . . . . . . . . 34
State Plans, Data Reporting, Research (Other than Marriage Promotion)
and Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
State plan requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Performance measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Rankings of states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Data collection and reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Use of sample data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Monthly state reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Annual state reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Data elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

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HHS reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Single audit reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Research, evaluations, and national studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Research on state programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Census Bureau study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
General Accounting Office study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Waivers and program coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Definition of assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Technical corrections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
State option to make TANF programs mandatory partners with one-stop
WIA centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Sense of the Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Enforcing support of immigrants by sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Extension through FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
List of Tables
Table 1. Comparison of Current Law with H.R. 4, as Passed by the House and
as Reported by the Senate Finance Committee (TANF Provisions) . . . . . . . 7

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TANF Reauthorization: Side-By-Side
Comparison of Current Law and Two
Versions of H.R. 4
Introduction
The House of Representatives and the Senate Finance Committee have approved
two different versions of a bill to continue funding and revise the block grant
Temporary Assistance for Needy Families (TANF), which was created in the 1996
welfare reform law. The 1996 law provided TANF funding through Fiscal Year (FY)
2002, and a series of laws have provided temporary extensions of the program. The
latest extension runs through March 31, 2004.
H.R. 4 is currently pending to amend TANF and provide funding for the
program through FY2008. The House approved its version of H.R. 4 in February
2003; the Senate Finance Committee reported a substitute bill in September 2003.
The Senate has yet to act on the bill.
Summary of the Similarities and
Differences of the Two Bills
The bills have many similarities, with both extending basic funding at current
levels through FY2008 and incorporating President Bush’s proposal to provide
categorical “marriage promotion” grants. They both also raise TANF work
participation standards, though the two bills differ in terms of how much more work
would be required and what activities count toward the participation standards. This
report provides a comparison of the TANF provisions of H.R. 4 as it passed the
House and was reported from the Senate Finance Committee. It does not address
non-TANF provisions of both bills, such as revisions to the Child Care and
Development Fund, Child Support Enforcement, Abstinence Education, and
transitional Medicaid.
Funding Provisions
The House-passed and Senate Finance Committee bills have very similar
funding provisions. The major difference in the funding provision between the two
bills is that the Senate Finance Committee bill would completely revamp the TANF
contingency (recession) funds, while the House-passed bill would make relatively
minor revisions to the fund.

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Basic Funding. The 1996 welfare reform law entitled states to a basic TANF
block grant equal to peak expenditures in the pre-1996 welfare programs during the
FY1992 to FY1995 period. It also established a maintenance of effort (MOE)
requirement that states continue to spend at least 75% (80% if a state failed TANF
work participation requirements) of what it spent in these programs in FY1994. The
mid-1990s were the period when cash welfare caseloads were at their peak. Both the
basic TANF grant and the MOE are legislatively fixed: they did not change when
cash welfare caseloads declined in the mid- and late-1990s, nor did they increase
when caseloads in some states increased during the recent economic slump. Neither
the basic TANF block grant nor the MOE have been adjusted for inflation.
Both the House-passed and Senate Finance Committee versions of H.R. 4 would
continue both the basic block grant and the MOE at their current funding levels
(without inflation or caseload adjustment) through FY2008.
Supplemental Grants. During the consideration of legislation that led to the
1996 welfare law, fixed funding based on historical expenditures was thought to
disadvantage two groups of states: (1) those that experience relatively high
population growth; and (2) states that had historically low grant levels relative to
poverty in the state. Therefore, additional funding in the form of supplemental grants
was provided to states that met criteria of high population growth and/or low historic
grants per poor person. Supplemental grants have been provided to 17 states:
Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Louisiana,
Mississippi, Montana, New Mexico, Nevada, North Carolina, Tennessee, Texas, and
Utah.
In FY2003, supplemental grants totaled $319 million. Both the House-passed
and Senate Finance Committee bills would continue supplemental grants for the
same 17 states at the FY2003 funding level through FY2007 (unlike other grants,
which expire in FY2008).
Contingency Funds. The fixed basic grant under TANF also led to concerns
of inadequate funding during economic downturns. TANF includes a contingency
fund, which is designed to provide extra matching grants to states that meet criteria
of economic need (based on unemployment rates and food stamp caseloads) and have
state expenditures in excess of their FY1994 level. Though some states met the
criteria of economic need during the recent recession and its aftermath, no states
drew contingency funds as states’ spending from their own funds did not increase to
above FY1994 levels.
The two bills differ substantially in their revisions to the TANF contingency
fund. The House-passed version of H.R. 4 essentially would continue the fund on
existing rules, with some relatively minor modifications: allowing some additional
state spending to count toward meeting the FY1994 funding level threshold and
modifications to increase grants for states that qualify for funds for only part of the
year.
The Senate Finance Committee bill fully revamps the contingency fund. It
would eliminate the requirement that states increase expenditures from their own
funds above the regular TANF MOE level and eliminates the matching requirements.

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It adds a new financial requirement that unspent TANF balances be below a certain
threshold to qualify for contingency funds. The Finance Committee proposal would
base contingency grants on a portion of the estimated cost of increased cash
assistance caseloads. The Senate Finance Committee bill would also revise the
criteria of economic need for a state.
Uses of Grants and Program Requirements. Federal TANF grants and
MOE funds can be used for a wide range of benefits, services, and activities to assist
low income families with children and to further TANF goals of reducing out-of-
wedlock births and promoting two-parent families. TANF grants can also be
transferred to other block grant programs: up to 30% of the grant can be transferred
to the Child Care and Development Fund (CCDF) and to the Social Services Block
Grant, though the limit on transfers to SSBG is set at 4.25% (though annual
appropriations have restored the SSBG transfer limit to its original limit set in the
1996 welfare law of 10%). Within the overall 30% limit, federal TANF funds may
also be used as the state match for federal reverse commuter grants if the program
benefits welfare families.
Both bills would set the SSBG transfer limit permanently at 10%. However,
the House bill would raise the overall transfer limit to 50%. The Senate Finance
Committee bill would retain the current law 30% transfer limit.
Both bills include provisions to ease some rules regarding use of TANF funds.
Both the House-passed and Senate Finance Committee versions of H.R. 4 would:
! Allow states to use carryover TANF funds for any TANF benefit and
service. Current law restricts the use of carryover funds for the
provision of “assistance.”
! Narrow the definition of “assistance” to exclude all child care and
transportation aid. TANF funds spent on assistance trigger certain
program requirements, such as work requirement, time limits,
assignment of child support payments, and data reporting
requirements. Under current regulations, child care and
transportation aid for nonworking families is counted as assistance
and triggers these requirements. The bills would eliminate such aid
from the definition of assistance, freeing nonworking families who
receiving only child care or transportation aid from these
requirements.
Work Requirements
Both the House-passed and Senate Finance Committee bills substantially revise
TANF work participation requirements that apply to both the states and to
individuals. They both raise work participation rates that states must meet from the
current law’s standard of 50% to 70%, raise the required hours of working of full
credit and provide partial credit for participating families that do not meet the full
credit standard, and revise the list of activities. However, the bills differ in how they
do these three things.

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Both bills also incorporate the Bush Administration’s “universal engagement”
proposal, which requires states to develop a self-sufficiency plan for all TANF adult
recipient to monitor progress toward that plan. The House -passed bill also requires
states to end benefits (“full family sanction”) for families that fail to comply with
work participation rules.
Participation Rate Standards. Current law requires states to have a
specified percentage of their families with an adult recipient (or minor head of
household) participating in creditable work activities. The current participation
standard is 50%. States are subject to an additional participation rate standard for
two-parent families, currently 90%. The participation rate standards may be reduced
for caseload reduction (not attributable to policy changes) that have occurred since
before enactment of welfare reform (FY1995). This “caseload reduction credit” has
had a large effect on participation standards, reducing the standard considerably from
its statutory rate. In FY2002, the standard was reduced to 0% for 22 states.
Both the House-passed and Senate Finance Committee bills raise the work
participation standard for all families to 70% by FY2008 and eliminate the separate
standard for two-parent families. Both bills also would revise the credits that reduce
these standards from their statutory rate (i.e., reduce the 70% standard to a lower
rate), but they do so in different ways.
The House-passed bill revises the current caseload reduction credit so that
caseload change is measured from a more recent year (rather than the pre-welfare
reform caseload level of 1995). Ultimately, caseload reduction would be measured
based on the most recent four years. The House bill also includes a provision to give
an additional credit to states that achieved a caseload reduction of 60% of more from
FY1995 to FY2001.
The Senate Finance Committee bill retains the current caseload reduction credit
for FY2004 and FY2005, but beginning in FY2006 would replace the caseload
reduction credit with a credit for employed welfare leavers. The bill would also cap
all credits against the participation standard, so that the minimum effective rate
standard would be 10% in FY2004, 20% in FY2005, 30% in FY2006, 40% in
FY2007, and 50% in FY2008.
Hours Standards. Current law requires that a family be considered
participating only if it participates for a minimum number of hours per week in a
month. Under current law, 20 hours is required for single parents with a pre-school
child (under the age of six) and 30 hours is required for other families. Higher hours
are set for the purposes of the two-parent work participation rate.
Both the House-passed and Senate Finance Committee bills raise the hours
standards. The House-passed bill incorporates a 40-hour workweek standard for full
credit, but would also provide “partial” credit for families with at least 24 hours of
participation. No special lower hour standard would be provided for single parents
with preschoolers.
The Senate Finance Committee bill also raises the hours standard for full credit,
but by less than proposed in the House-passed bill. Single parents with a pre-school

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child would be given full credit for participation at 24 hours per week, and other
single parent families would be given full credit at 34 hours per week. Partial credit
for single parent families would be provided at 20 hours per week. Higher hours
requirements would apply to two-parent families.
Creditable Activities. Current law lists 12 activities that may be counted
toward TANF work participation standards. The bulk of countable participation is
in a subset of “core” activities focused on work, time-limited job search (countable
for six weeks in a fiscal year, 12 weeks if criteria of economic need is met), time-
limited vocational educational training (12 months in a lifetime), and community
service and work experience. Except for teen parents without a high school diploma
and recipients engaged in vocational educational training, educational activities are
countable only for families who are also participating in “core” activities. Post-
secondary education, other than that considered “vocational educational training,”
does not count toward current law federal TANF work participation standards.
Both bills revise the list of countable activities, but in very different ways. The
House-passed bill would narrow what counts as “core” activity by removing job
search and vocational educational training from that list. Except for a limited period
of time (see below), the House bill would require that families participate for at least
24 hours per week in work, community service, or work experience programs to be
counted toward the state’s standard. For three months in a 24-month period (four
months in the case of an educational program), states would be allowed to define
activities that count toward the standards. These activities could include job search
and vocational educational training or other types of activities (e.g., English for
Speakers of Other Languages classes, substance abuse treatment or treatment for
victims of domestic violence). States would also be allowed to determine the
activities for which hours would count above the 24-hour per week standard.
The Senate Finance Committee bill retains the current law list of activities,
including keeping time-limited job search and vocational educational training as
“core” activities. However, it provides states with options to allow recipients to
participate in an additional set of activities for three months in a 24-month period.
In the case where that participation is in a rehabilitative activity, another three months
of rehabilitation would be allowable if combined with a core work activity. The
Senate Finance Committee bill would also allow these additional activities (and job
search and vocational educational training to count without regard to their usual time
limits) to count for hours above 24 hours per week spent in core activities.
The Senate Finance Committee bill also allows states to have up to 10% of its
caseload enrolled in a special program of two- or four-year undergraduate education
or vocational educational training. This program is modeled after the “Parents as
Scholars” program that has operated in Maine using TANF MOE funds.
Marriage Promotion Grants
Current law allows states to use TANF funds for any activity “reasonably
calculated” to achieve a TANF purpose. One of the statutory purposes of TANF is
to end dependency of needy parents on government benefits, and one of the stated
means to end such dependency is “marriage.” Another of the statutory purposes of

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TANF is to promote the formation and maintenance of two-parent families.
“Promoting marriage” is a currently allowable use of TANF funds.
Both the House-passed and Senate Finance Committee versions of H.R. 4 would
carve out special “marriage promotion grants” from existing TANF funding. Both
bills include $100 million in competitively awarded matching funds for states,
territories, and tribes for marriage promotion activities. The bills would allow states
to use other federal TANF funds or state funds as the match for these new marriage
promotion grants.
Both bills also would provide an additional $100 million for research and
demonstrations. The House-passed bill requires that these funds be used “primarily”
for marriage promotion; the Senate Finance Committee bill requires that 80% of
these funds be used for marriage promotion.
Marriage promotion activities listed in both bills are: public advertising
campaigns on the value of marriage and skills needed to increase marital stability and
health; education in high schools on the value of marriage; marriage education and
marriage and relationship skills programs for nonmarried parents or expectant
parents; pre-marital education on marriage for engaged couples; marriage
enhancement and marriage skills training for married couples; divorce education
programs; and marriage mentoring programs. Programs to reduce the disincentives
to marriage in need-based programs could only be funded from these grants if offered
in conjunction with other marriage activities. The language of the two bills is
similar, though the Finance Committee bill has additional language requiring that
organizations familiar with domestic violence issues be consulted in developing
marriage promotion projects and language to clarify that marriage promotion
activities are to be voluntary.
Other Provisions
Both the House-passed bill and Senate Finance Committee bill make some
additional amendments to TANF provisions regarding state plans, data reporting,
tribal TANF programs, and other provisions of TANF law. These provisions are
included in the detailed bill comparison table shown below. The House-passed and
Senate Finance Committee versions of H.R. 4 also include amendments to the Child
Care and Development Fund, child support enforcement, the abstinence education
program, and transitional Medicaid. These provisions are not addressed in this
report.
Detailed Comparison of TANF Provisions of the
House and Senate Finance Committee Bill
Table 1 provides a detailed comparison of the TANF programs of the House-
passed and Senate Finance Committee reported versions of H.R. 4. The table
provides references to where current law provisions are found in the Social Security
Act (SSA). It also denotes the section number in each of the bills in which the
provision is found.

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CRS-7
Table 1. Comparison of Current Law with H.R. 4, as Passed by the House and as
Reported by the Senate Finance Committee (TANF Provisions)
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Short Title, Findings and Statement of TANF Goals and Purposes
Short Title
The Personal Responsibility and
Work
The Personal Responsibility, Work, and Family
The Personal Responsibility and Individual
Opportunity Reconciliation Act of 1996 (P.L.
Promotion Act of 2003.
Development for Everyone Act (PRIDE).
104-193).
Findings
P.L. 104-193, the Personal Responsibility and
Makes a series of findings related to: (1) the
No provision.
Work Opportunity Reconciliation Act of 1996,
success of the 1996 law in moving families from
made a series of findings related to marriage,
welfare to work and reducing child poverty; (2)
responsible parenthood, trends in welfare receipt
progress made by the Nation in reducing teen
and the relationship between welfare receipt and
pregnancy and births, slowing increases in
nonmarital parenthood, and trends in and negative
nonmarital births, and improving child support
consequences of nonmarital and teen births.
collections and paternity establishment; (3) the
[Section 101 of PRWORA]
flexibility provided by the 1996 law for states to
develop innovative programs; and establishing the
sense of Congress that increasing success in
moving families from welfare to work and
promoting healthy marriage and other means of
improving child well-being are important
government interests and the policies in federal
TANF law (as amended by this bill) are intended to
serve those ends. [Section 4]
TANF goals and
The purpose of TANF is to increase state
The overall purpose of TANF is to improve child
Retains current law except for goal no. 4, which
purposes
flexibility in operating a program designed to:
well-being by increasing state flexibility in
adopts language of House bill. [Section 103(d)]
(1) assist needy families so that children may live
operating a program designed to: (1) provide
in their homes or those of relatives; (2) end
assistance and services to needy families so that
dependence of needy parents on government
children may live in their homes or those of
benefits; (3) reduce out-of-wedlock pregnancies;
relatives, (2) end dependence of needy families on
and (4) encourage the formation and maintenance
government benefits and reduce poverty; (3)
of two-parent families.
reduce out-of-wedlock pregnancies; and (4)
[Section 401 of the Social Security Act (SSA)]
encourage the formation and maintenance of

---

CRS-8
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
healthy, two-parent married families and
encourage responsible fatherhood. [New language
in italics] [Section 101]
TANF Financing Provisions
State family
Provides capped grants (entitlements to states and
Retains basic block grants, and extends them for
Essentially the same as House bill, but language
assistance grants
territories) through March 31, 2004. Nationally,
FY2004 through 2008. (Section 102(a)
differs because of intervening passage of TANF
annual family assistance grants total $16.567
Appropriates $16.567 billion annually for family
extension law — P.L. 108-40. [Section 102]
billion for the states, the District of Columbia
assistance grants to the states, D.C., and the
(D.C.), and the territories. Each jurisdiction’s
territories. Provides that the annual grant of each
annual grant equals the same share of the national
jurisdiction shall equal its FY2002 proportion of
total as in FY2002. (Section 403(a)(1) of the
the national grant total. [Section 102(b)]. Extends
SSA), as amended by P.L. 108-40 and extended
funding for matching grants to the territories
by P.L. 108-89 Also provides matching grants
through FY2008. [Section 102(c)].
for the territories (Section 1108(b) of the SSA).
(Original PRWORA formula based TANF grants
on federal expenditures for TANF’s predecessor
programs in FY1992 through FY1995.)
Supplemental grant
Supplemental grants for (17) states with low
Reestablishes annual supplemental grants for
Same as House bill [Section 104]
for population
historic federal grants per poor person and/or high
FY2004 through FY2007, freezing them at the FY
increases in certain
population growth for FY1998-FY2001 (extended
2001 level ($319 million). [Section 104]
states
at FY2001 funding level for FY2002 by P.L. 107-
147 and thereafter — through March 31, 2004 —
by a series of laws. Grants grew each year, from
$79 million in FY1998 to $319 million in
FY2001. [Section 403(a)(3) of SSA]
Requires the budget baseline to assume that no
Requires the budget baseline to assume that no
Same as House bill. [Section 104(2)]
supplemental grants will be made after March 31,
supplemental grants will be made after FY2007.
2004. [Section 101(b)(1) of P.L. 108-89]
[Section 104(3)]

---

CRS-9
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Bonus to reward
High performance bonus ($200 million per year
Replaces the high performance bonus with a bonus
Same as House bill. [Section 105(a)]
employment
on average) for FY1999-FY2003. Caps a state’s
to reward employment achievement (annual
achievement
bonus at 5% of its TANF grant. [Section
average of $100 million appropriated for six years,
403(a)(4) of the SSA]
FY2004 through FY2009). Caps a state’s bonus at
5% of its family assistance grant. [Section 105(b)]
Bonus based on achievement of TANF goals, with
Bonus to be based on absolute and relative
Same as House bill, except that it adds two new
formula developed by the Department of Health
progress toward goals of job entry, job retention,
performance measures: workforce attachment
and Human Services (HHS) in consultation with
and increased earnings. Formula to be developed
and advancement. [Section 105(a)]
the National Governors Association and the
by HHS, in consultation with the states. [Section
American Public Human Services Association.
105(b)]
For FY1999-FY2001 performance, formula
consisted of three work-related measures (job
entry, job retention, and earnings gain). For
FY2002 and FY2003 performance, formula adds
family formation outcomes, child care
affordability, and coverage by food stamps and
Medicaid/SCHIP. [Section 403(a)(4) of the SSA]
Makes tribal organizations eligible for the bonus
Same as House bill. [Section 105(a)]
and directs the Secretary to consult with tribal
organizations regarding criteria for their awards.
[Section 105(b)]
Reduces FY2003 high performance bonus amount
No provision.
to $100 million. [Section 105(a)]
Provides that appropriated amounts unspent (as of
No provision.
the date of enactment) for high performance
bonuses will be available through FY2004 for
payment of high performance bonuses for bonus
year 2003 — on terms in effect before repeal of
that bonus. [Section 105(b)]

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CRS-10
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
For FY2004, employment achievement bonus may
For FY2004 and FY2005, employment
be based on three components of the repealed high
achievement bonus may be based on three
performance bonus — job entry rate, job retention
components of the repealed high performance
rate, and earnings gain rate. [Section 105(b)]
bonus — job entry rate, job retention rate, and
Note: Reduction in annual bonuses from $200
earnings gain rate. [Section 105(a)]
million to $100 million per year helps finance
grants for marriage promotion activities (see
Matching Grants for Marriage Promotion, below).
Bonus to reward
Appropriated $100 million yearly for bonuses to
Repeals the bonus, and uses the $100 million per
Same as the House bill. [Section 103(b)]
reductions in out-
the five states with the largest percentage decline
year to fund grants for marriage promotion
of-wedlock births
(over recent two years) in the out-of-wedlock
activities (see Matching Grants for Marriage
birth ratio. To qualify, states had to reduce their
Promotion, below). [Section 103(b)]
abortion rate to below that of FY1995. [Section
403(a)(2) of the SSA]
Contingency fund
Capped matching grants ($2 billion) provided in
Reestablishes a $2 billion contingency fund for
Appropriates such sums as are needed for
case of recession for FY1997-FY2001 (extended
FY2004 through FY2008. Eases access to the fund
contingency fund grants, up to $2 billion over
through September 30, 2002 by P.L. 107-147 and
by permitting states to count child care spending
five years, FY2004-FY2008. Reduces the level
through March 31, 2004 by a series of laws). To
and all spending in separate state programs toward
of state spending required to qualify (from 100%
qualify for contingency dollars, states must be
MOE spending requirement. Eliminates the pro-
of the state’s historic level to 75-80%, the
“needy” and must spend under the TANF
rata reduction in the federal match rate for states
standard TANF MOE) and eliminates the
program a sum of their own dollars equal to their
that qualify for funds only for part of the year.
requirement for state matching funds. Entitles
pre-TANF spending. The law provides two needy
Adjusts food stamp “needy state” trigger for policy
needy states to a contingency fund grant
state triggers: 1) an unemployment rate for a
changes made after passage of 1996 welfare law
reflecting costs of TANF caseloads. Revises
three-month period that is at least 6.5% and is
Effective date: October 1, 2003. [Section 106]
needy state definition. To trigger on as needy, a
10% or more above the rate for the
state must (1) have an increase (due in large
corresponding period in either of the two
measure to economic conditions) of 5% in the
preceding calendar years; or 2) a food stamp
monthly average unduplicated number of
caseload increase of 10% over the FY1994-
families receiving assistance under its TANF
FY1995 level (adjusted for the impact of
program in the most recently concluded three-
immigrant and food stamp constraints in the 1996
month period with data, compared with the
welfare law). Payments are capped at 20% of a
corresponding period in either of the two most
state’s basic TANF grant and a state can draw
recent preceding fiscal years, and (2) meet one
down no more than one-twelfth of its grant in a
of three other conditions. They are: (a) for the
given month. Under a reconciliation process, its
most recent three-month period with data, the

---

CRS-11
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
federal match rate is reduced if it received funds
average rate of seasonally adjusted total
for fewer than 12 months in any year. [Section
unemployment must be at least 1.5 percentage
403(b) of SSA]
points or 50% higher than in the corresponding
period in either of the two most recent preceding
fiscal years; (b) for the most recent 13 weeks
with data, the average rate of insured
unemployment must be at least one percentage
point higher than in the corresponding period in
either of the two most recent fiscal years; or, (c)
for the most recently concluded three-months
with national data, the monthly average number
of food stamp recipient households, as of the last
day of each month, exceeds by at least 15% the
corresponding caseload number in the
comparable period in either of the two most
recent preceding fiscal years, provided the HHS
Secretary and the Secretary of Agriculture agree
that the increased caseload was due, in large
measure, to economic conditions rather than to
policy change. A state that initially qualifies as
needy because of its TANF caseload plus its
food stamp caseload would continue to be
considered needy as long as the state met the
original qualifying conditions. A state that
initially qualified as needy because of its TANF
caseload plus its total or insured unemployment
rate would not trigger off until its
unemployment rate fell below the original
qualifying level (disregarding seasonal variations
in the case of the insured unemployment rate).
The contingency fund grant equals the state’s
federal Medicaid matching rate times the benefit
cost of an increase in the TANF family caseload
above 5% in the most recently concluded three-
month period with data, compared with the

---

CRS-12
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
corresponding period in either of the two most
recent preceding fiscal years. (The remaining
cost of the increased caseload would have to be
paid with state funds or other federal TANF
funds.) A state’s total contingency grant could
not exceed 10% of its family assistance grant.
To receive a contingency fund grant, a state must
have spent 70% of its TANF grants (excluding
welfare-to-work funds from the Department of
Labor). Unexpended balances are the total
amount of TANF grants not yet spent by the
state as of the end of the preceding fiscal year
minus current year expenditures through the end
of the most recent quarter that exceed the pro
rata share of the current fiscal year TANF grant.
[Section 106]

Repeals the fiscal penalty for failure of a state
that receives contingency funds to meet the
“super-MOE” requirement (100% of its historic
spending level). [Section 106] However,
specifies that a state could not be considered
needy unless it has met the lesser TANF MOE
spending requirement (75%-80%). [Section
106].
Additional grants
Social service
No provision.
No provision.
Authorizes appropriation of $40 million for each
capitalization
of FY2004-FY2008 for grants to entities for the
purpose of capitalizing and developing the role
of sustainable social services needed for success
in moving TANF recipients to work. Requires
applicants to describe their strategy for
developing a program that generates its own
source of on-going revenue while assisting

---

CRS-13
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
TANF recipients. Administrative costs could not
exceed 15% (except for computerization and
information technology needed for tracking or
monitoring required by TANF), but none of the
other statutory rules regarding use of TANF
funds would apply. Requires evaluation and
report to Congress. [Section 119(a)]
Car ownership
No provision.
No provision.
Authorizes appropriation of $25 million for each
grants
of FY2004-FY2009 for grants for low-income
car ownership. Purposes: to improve
employment opportunities of low-income
families and provide incentives to states, Indian
tribes, localities, and nonprofit groups to develop
and administer programs that promote car
ownership by low-income families. No more
than 5% of the funds could be used for
administrative costs of the Secretary in carrying
out this program. Requires evaluation. [Section
119(b)]
Repeal of federal
Provides a $1.7 billion revolving and interest-
Repeals loan fund. [Section 108]
Same as House bill. [Section 108]
loan fund
bearing federal loan fund for state welfare
programs. [Section 406 of the SSA]
Maintenance of
Establishes a maintenance-of-effort (MOE)
Continues MOE requirement through FY2009, but
Same as House bill. [Section 111]
effort
requirement that states spend at least 75% of what
raises the MOE percentage to 80% if the state
was spent from state funding in FY1994 on
failed TANF work participation standards of the
programs replaced by TANF. Nationally, this
preceding fiscal year. [Section 111(a)]
sum is $10.4 billion. (MOE rises to 80% if state
fails a work participation standard, see above.)
[Section 409(a)(7) of the SSA]
Defines all state expenditures to reduce out-of-
Same as House bill, except that Senate bill
wedlock births and promote marriage and
specifies that two current law MOE limitations
responsible fatherhood (including spending on
would apply. These provisions exclude from

---

CRS-14
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
behalf of non-TANF-eligible families) as countable
MOE qualification spending in other state
toward required “maintenance-of-effort” (MOE)
programs unless the sum exceeds the FY1995
state spending. [Section 103(c)]
amount spent in those programs and spending
made to repay penalties imposed on the state.
[Section 103(c)]
Provides that spending (as the state match) from
TANF funds used as the state match for marriage
federal marriage promotion grants shall not be
promotion grants shall not be considered State
treated as state spending toward MOE
spending countable toward the MOE
requirements. [Section 111(b)]
requirement. [Section 103(b)].
Funding for child
PRWORA created a mandatory child care block
Increases mandatory child care funding by $1
For mandatory child care, same as House bill.
care
grant and appropriated $13.9 billion for it over six
billion over five years, providing $2.9 billion
[Section 116 (a)] No provision for discretionary
years. [Section 418 of the SSA] It also
annually. [Section 208] Authorizes increased
funding. (The Senate Health, Education, Labor
authorized $1 billion annually through FY2002 in
CCDBG funds for FY2004-FY2007. [Section
and Pensions committee reported a separate bill,
discretionary funding under an expanded Child
202(b)]
S. 880, to reauthorize discretionary CCDBG
Care and Development Block Grant (CCDBG).
funding.)
[Section 603(a) of PRWORA] FY2003
appropriations totaled $4.8 billion — $2.7 billion
in mandatory funds and $2.1 billion in
discretionary funds. (In addition, the welfare law
permits states to transfer some TANF funds to the
CCDBG.)
No provision.
Sets aside $10 million in mandatory child care
funds for the Commonwealth of Puerto Rico.
[Section 116(b)]
Use of funds
General rules
States may use funds in any manner reasonably
No provision (maintains current law).
No provision (maintains current law).
calculated to accomplish the TANF purpose.
[Section 404 of the SSA]

---

CRS-15
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
States may use funds in any manner that they
States may use funds for any purposes or activities
No provision (maintains current law).
were authorized to use pre-TANF funds. [Section
for which they were authorized to use pre-TANF
404 of the SSA]
funds. [Section 107(a)]
A state may treat a family that has resided in the
Strikes provision permitting different treatment of
Same as House bill. [Section 107(a)]
state for fewer than 12 months under the welfare
families migrating into the state — found
rules of the state where they formerly lived.
unconstitutional. [Section 107(b)]
[Section 404 of the SSA]
Transfer of funds
States may transfer up to 30% of TANF funds to
Increases the overall ceiling on transfers to 50%.
Retains overall transfer limit at 30%. Sets limit
the Child Care and Development Block Grant
[Section 107(c)] Sets limit on SSBG transfers at
on SSBG transfers at 10%. [Section 107(b)]
(CCDBG) and the Title XX Social Services Block
10% (original limit in 1996 law) for FY2004 and
Grant (SSBG). Specifies that a maximum of
each year thereafter. [Section 107(d)]
4.25% of total transfers may go to SSBG,
effective in FY2001 ( but year-by-year Congress
has restored the original 10% limit.) Also allows
states to use TANF funds, within the overall 30%
transfer limit, as matching funds for the Job
Access transportation program for TANF
recipients, ex-recipients, and persons at risk of
becoming income-eligible for TANF. [Section
404 of the SSA]
Carryover of funds
Amounts may be spent without fiscal year limit
Allows use of carry-over funds from TANF grants
Same as House bill. [Section 107(c)]
for “assistance” (chiefly ongoing cash aid). For
for any benefit or service without fiscal year
other benefits and services (“nonassistance”)
limitation. Permits a state or tribe to designate
amounts must be obligated in the year of award
some TANF funds as a contingency reserve.
and spent in the following year. [Section 404 of
[Section 107(e)]
the SSA]
Use of funds for
States may use funds for educational activities (to
No provision.
Allows states to use TANF funds to establish an
education
promote a TANF goal or because these activities
undergraduate two- or four-year degree
were allowed under pre-1996 law). However,
postsecondary program sometimes known as
only three educational activities may be counted
Parents as Scholars (PAS) or a vocational
toward state work participation rates: high school
educational program. Following services could
attendance, education directly related to work
be provided in these undergraduate programs:

---

CRS-16
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
(both for high school dropouts only) and
child care, transportation, payment for books and
vocational educational training. Unless it is
supplies, other services provided under policies
defined by the state as vocational educational
determined by the state to ensure coordination
training, postsecondary education is not a
and lack of duplication. TANF funds could not
countable work activity. [Section 407(d) of the
be used for tuition. Participants in these
SSA]
educational programs could be counted toward
state work participation standards. See
Countable Activities.
Direct funding and
Earmarks some TANF funds — amount equal to
Continues Indian tribal assistance grants and NEW
Same as House bill. [Section 113(a)]
administration by
federal pre-TANF payments received by state
work/training grants through FY2008. [Section
Indian tribes
attributable to Indians — for administration by
114]
tribes. Deducts these sums from state TANF
grants. Also appropriates $7.6 million annually
for work and training activities (now known as
Native Employment Works (NEW)) to tribes that
operated a pre-TANF work and training program.
[Section 412 of the SSA]
No provision. for tribal improvement fund.
Authorizes appropriation of $100 million for
However, see below for $2 million annual setaside
each of FY2004-FY2008 for a tribal TANF
from research appropriation for demonstration
improvement fund. The fund could be used to
projects to coordinate child welfare and TANF
provide technical assistance to tribes, award
services to tribal families.
competitive grants to tribes, and conduct
research to improve knowledge about tribal
family assistance plans. [Section 113(b)]
Work Participation Requirements and Standards
Universal
State plan must require that a parent or caretaker
Repeals the 24-month work trigger. Requires state
Same as House bill. [Section 110]
engagement and
engage in work (as defined by the state) after, at
plans to outline how they intend to require parents
family self-
most, 24 months of assistance. [Section
and caretakers to engage in work or alternative
sufficiency plan
402(a)(1)(ii) of the SSA]. Note: This
sufficiency activities, as defined by the state —
requirements
requirement is not enforced by a specific penalty.
while observing the ban on penalizing work refusal
(States may, but need not, establish an individual
by a single parent of a preschool child who is
responsibility plan for each family in consultation
unable to obtain needed child care for specified

---

CRS-17
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
with the recipient.) [Section 408(b)(2) of the
reasons — and to require families to engage in
SSA]
activities in accordance with family self-
sufficiency plans. [Section 109(a)]
States must make an initial assessment of the
Requires states, in a manner they deem
Requires states to make an initial screening and
skills, prior work experience, and employability
appropriate, to assess the skills, work experience,
assessment, in a manner they deem appropriate,
of each recipient 18 or older or those who have
and employability of each work-eligible person (a
of the skills, work experience, education, work
not completed high school within 30 days.
person who is married or a single household head
readiness, work barriers and employability of
[Section 408(b)(1) of the SSA]
and whose needs — except for sanction periods of
each adult or minor child head of household
more than three months — are included in
recipient who has attained age 18 or who has not
determining the family’s TANF cash benefit) and
completed high school and to assess, in a manner
to develop a family self-sufficiency plan for each
they deem appropriate, the work support and
family with such a person. Plans must be
other assistance and family support services for
established within 60 days of opening a case
which families are eligible and the well-being of
(within 12 months for families enrolled at the time
the family’s children and, where appropriate,
of enactment). [Section 109(b)]
activities or resources to improve their well
being. Requires states, in a manner they deem
appropriate, to establish a self-sufficiency plan
for each family. Required plan contents:
activities designed to assist the family achieve
their maximum degree of self-sufficiency,
requirement that the recipient participate in
activities in accordance with the plan, supportive
services that the state intends to provide, steps to
promote child well-being and, when appropriate,
adolescent well-being , information about work
support assistance for which the family may be
eligible (such as food stamps, medicaid, SCHIP,
federal or state funded child care — including
that provided under the Child Care and
Development Block Grant and the Social
Services Block Grant, EITC, low-income home
energy assistance, WIC, WIA program, and
housing assistance). The state must monitor the
participation of adults and minor child household
heads in the self-sufficiency plans and regularly

---

CRS-18
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
review the family’s progress, using methods it
deems appropriate, and revise the plan when
appropriate. Before imposing a sanction against
a recipient for failure to comply with a TANF
rule or a requirement of the self-sufficiency plan,
the state must, to the extent that it deems
appropriate, review the plan and make a good
faith effort (defined by the state) to consult with
the family. States must comply with self-
sufficiency plan requirements within one year
after enactment (for families then receiving
TANF). For families not enrolled on the date of
enactment, the deadline for self-sufficiency plans
is the later of: 60 days after the family first
receives assistance on the basis of its most recent
application, or one year after enactment.
Provides that nothing in the self-sufficiency plan
provisions shall be construed to establish a
private right or cause of action against a state for
failure to comply with the provisions or to limit
claims that might be available under other
federal or state laws. Requires the General
Accounting Office to submit a report to the
Ways and Means and Finance Committees
evaluating the implementation of the universal
engagement provisions of the bill. [Section 110]
Imposes a penalty on state for failure to establish
Same as House bill, except that penalty must be
self-sufficiency plan by revising the penalty
based on the degree of substantial
provision for failure to achieve work participation
noncompliance and the Secretary is directed to
rate. Provides that failure to comply with self-
take various factors into account in setting the
sufficiency requirements or to achieve work
penalty. These factors include the number or
participation standards will carry the same penalty
percentage of families for whom a self-
— 5% reduction in TANF grant for first violation,
sufficiency plan is not established in a timely
reduced for the degree of noncompliance. [Section
fashion, duration of delays, whether the failures
109(b)] See Penalty for failing participation rate.
are isolated and nonrecurring, and the existence

---

CRS-19
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
of systems to ensure establishment and
monitoring of plans. Penalty may be reduced if
the failure is due to circumstances that caused
the state to meet the criteria for contingency
funds or is due to extraordinary circumstances
such as a natural disaster or regional recession.
Requires Secretary, in a written report to
Congress, to justify any waiver or penalty
reduction due to extraordinary circumstances.
[Section 110]
Sanctions against
If person in a family receiving TANF assistance
If a person in a family receiving TANF assistance
No provision (maintains current law)
individuals for
refuses to engage in required work, the state shall
fails to engage in required activities and the family
work refusal
reduce aid to the family pro rata (or more, at state
does not otherwise engage in activities in
option) with respect to the period of work refusal,
accordance with its self-sufficiency plan, the state
or shall discontinue aid, subject to good cause and
must impose a penalty as follows:
other exceptions that the state may establish.
(a) If the failure is partial and does not last longer
[Section 407(e) of the SSA]
than one month, the state must reduce assistance to
the family pro rata (or more, at state option) with
respect to any period of failure during the month,
or shall end all assistance to the family, subject to
good cause exceptions that the state may establish.
(b) If the failure is total and persists for at least two
consecutive months, the state must end all cash
payments to the family, including state-funded
MOE payments, for at least one month and
thereafter until the person participates, subject to
good cause exceptions that the state may establish.
(Exception: If a state constitution or a state statute
enacted before 1966 obligated local government to
provide assistance to needy parents and children,
the state requirement is to control, but only for one
year that begins with the date of enactment of this
paragraph.) [Section 110(f)]

---

CRS-20
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Exception: a state may not penalize a single
Continues this provision.
Same as House bill.
parent caring for a child under age six for refusal
to work if the parent has a demonstrated inability
to obtain needed child care that is appropriate,
suitable, and affordable. [Section 407(e) of the
SSA]
Work participation
For a minimum number of hours, a state must
For a minimum number of hours, a state must
For a minimum number of hours, a state must
requirements
engage a specified percentage of families
engage a specified percentage of families
engage a specified percentage of families
containing adult or teen parent recipients in
containing adult or teen parent recipients in direct
containing adult or teen parent recipients in a
creditable work activities. Since FY2002 the
work or alternative self-sufficiency activities
creditable activity. Participation rates are the
participation standard has been 50% for all
chosen by the state. In FY2004 the standard is
same as in the House bill. [Section 109(b)]
families (and since FY1999 it has been 90% for
50%, and it rises by five percentage points yearly
the two-parent component of the caseload).
(55% for 2005, 60% for 2006, 65% for 2007) to
[Section 407(a) of the SSA]
reach a peak of 70% for FY2008 and thereafter.
[Section 110(b)]
Required participation rates may be reduced by a
Required participation rates may be reduced by
Required participation rates may be reduced by
caseload reduction credit (see below).
caseload reduction and “superachiever” credits (see
caseload reduction or employment credits, but a
below).
cap is placed on these credits. Employment
credits (or caseload reduction credits or a
combination of the two) may not reduce
participation standards below 10% for FY2004,
20% for fiscal year 2005; 30% for FY2006, 40%
for FY2007, and 50% for FY2008 and thereafter.
[Section 109(c)] (see below).
Effective October 1, 2002, eliminates the separate
Same as House bill. [Section 109(a)]
standard for two-parent families. [Section 110(a)]
Caseload reduction
Work participation standards are reduced by a
Measures caseload reduction from a moving base
Retains current law caseload reduction credit for
credit
caseload reduction credit: for each percent
year (rather than from FY1995) and shortens the
FY2004 and FY2005. Effective October 1,
decline in the caseload from the FY1995 level
measuring interval. Also changes the eligibility
2005, replaces the caseload reduction credit with
(not attributable to policy changes), the work
criteria base year from FY1995 to the new moving
an employment credit (subject to limits shown
participation standard is reduced by one
base. For FY2004, the credit is based on the
above). [Section 109(d)]
percentage point. [Section 407(3) of the SSA]
percent decline in the caseload from FY1996 (not

---

CRS-21
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
due to changes in eligibility criteria from FY1996);
for FY2005, the base year is FY1998; for FY2006,
FY2001. For FY2007 and every year thereafter,
the measuring interval is four years. [Section
110(c)]
Establishes a “superachiever” caseload reduction
No provision.
credit for a state with a reduction in FY2001 of at
least 60% (for any reason) from FY1995 level.
Places a cap on this credit (20 percentage points for
FY2008, lesser amounts for earlier years). [Section
110(d)]
Employment credit
No provision.
No provision.
Establishes a percentage point “employment”
credit against the work participation standard
(subject to limits described above). Essentially,
the credit equals a multiple of the percentage of
TANF families in a month who leave ongoing
cash assistance with a job. It is calculated by
dividing (a) twice the quarterly average
unduplicated number of families (excluding
child-only families) that received TANF
assistance during the preceding fiscal year but
who ceased to receive TANF — and did not
receive cash assistance from a separate state-
funded program — for at least two consecutive
months following case closure during the
applicable period (most recent four quarters with
data) and were employed during the calendar
quarter immediately after leaving TANF by (b)
the average monthly number of families (again
excluding child-only families) who received
cash payments under TANF during the
preceding fiscal year. At state option,
calculations could include in the numerator: (1)
twice the quarterly average number of families

---

CRS-22
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
that received non-recurring short term benefits
rather than ongoing cash and who earned at least
$1,000 in the quarter after receiving the benefit,
and (2) twice the quarterly average number of
families that included an adult who received
substantial child care or transportation
assistance. If both these options were taken, the
denominator would be increased by twice the
number of families that received non-recurring
short-term benefits during the year and by twice
the quarterly average number of families with an
adult who received substantial child care or
transportation assistance. In consultation with
directors of state TANF programs, the Secretary
is to define substantial child care or
transportation assistance, specifying a threshold
for each type of aid — a dollar value or a time
duration. The definition must take account of
large one-time transition payments. [Section
109(d)]
Gives extra credit — as 1.5 families — to a
family whose earnings during the preceding
fiscal year equaled at least 33% of the state’s
average wage. [Section 109(d)]
Authorizes and requires the HHS Secretary to
use information in the National Directory of
New Hires to calculate state employment credits.
If the TANF leaver’s employer is not required to
report new hires, the Secretary must use
quarterly wage information submitted by the
state. To calculate employment credits for
families who received non-recurring short term
benefits and for those who received substantial
child care and transportation assistance, the

---

CRS-23
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Secretary is to use other required data. By
August 30 of each year, the HHS Secretary must
notify each state of the amount of the
employment credit that will be used in
calculating participation rates for the
immediately succeeding fiscal year. [Section
109(d)]
Sets October 1, 2005 as the effective date for
replacement of the caseload reduction credit by
the employment credit, but permits states to
have a one-year delay. If a state makes this
choice, its adjusted work participation standard
for fiscal year 2006 shall be determined by using
both the caseload reduction credit and the
employment credit (one-half credit for each).
[Section 109(d)]
Calculation of
Participation rates equal the share of total families
Participation rates equal the share of hours spent in
Participation rates equal the share of total
participation rates
(with adult and teen parent recipients) who work
creditable activities out of a potential total of 160
families (with adult and teen parent recipients)
sufficient hours in counted activities to be
hours monthly per counted family. (A counted
who work in countable activities. The monthly
credited as a participant. The monthly
family is one whose household head receives
participation rate, expressed as a percentage,
participation rate, expressed as a percentage,
TANF assistance.) Monthly participation rate,
equals (a) the number of all recipient families in
equals (a) the number of all recipient families in
expressed as a percentage, is (a) the total number
which an individual is engaged in work activities
which an individual is engaged in work activities
of countable hours, divided by (b) 160 times the
for the month, divided by (b) the number of
for the month, divided by (b) the number of
number of counted families for the month. This
recipient families with an adult or teen parent
recipient families with an adult or teen parent
means that a family would receive full work credit
recipient (but excluding families subject that
recipient (but excluding families subject that
by working 160 hours a month, equivalent to a
month to a penalty for work refusal, provided
month to a penalty for work refusal, provided
weekly average of 37 hours — 160/4.33. (The
they have not been penalized for more than three
they have not been penalized for more than three
average month contains 4.33 weeks, not 4.) The
months). States also may exclude from work
months). States also may exclude from work
bill specifies that if a family does not engage in a
participation calculations families with children
participation calculations single-parent families
direct work activity for a weekly average of 24
under one, if they are not required to work, and
with children under one, if they are not required
hours, its countable hours for the month shall be
all families during their first month of TANF
to work. States have the option to include in work
zero. However, under some circumstances, allows
assistance. States have the option to include in

---

CRS-24
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
participation calculations families in a tribal
credit for hours below 24. Allows credit for some
work participation calculations families in a
TANF program or NEW job training program.
hours above 40. See Partial credit and Extra
tribal TANF program or NEW job training
[Section 407(b) of SSA] [Note: except for teen
credit below. [Section 110(e)]
program. Calculates weekly hours of work
parents, single parents with a child under six, and
activity by dividing monthly hours by 4. Allows
participants in a tribal program with different hour
some credit for hours below or above the
requirements, families must work an average of at
standard. See Partial credit and Extra credit
least 30 hours weekly to be counted as working.]
below. [Section 109]
Permits states to exclude a new group from work
Same as House bill, except that the exclusion is
participation calculations — families in first month
determined on a case-by-case basis. [Section
of assistance. [Section 110(b)]
109(e)]
Permits states to exclude all families with infants
Same as House bill, except that it allows
(not just single-parent families) from work
exclusion of families of infants only for 12
participation calculations, but requires case-by-case
months. [Section 109(e)]
determination of all work exclusions for parents of
infants. [Section 110(b)]
Penalty for failing
Participation rates are enforced by a penalty on
Retains penalty rate of current law (including
Provides that penalty (beginning for FY2005)
participation rate
states: loss of 5% of the state’s basic grant for
increase in MOE requirement) for state failure to
must be based on the degree of substantial
first year of violation (higher penalty for repeat
meet participation standards.
noncompliance. Directs the Secretary to take
violations). Penalty must be based on the degree
into account factors such as the degree to which
of noncompliance and may be reduced if the
the state missed the participation rate, the change
noncompliance is due to circumstances that made
in the number of persons engaged in work since
the state needy under the contingency fund
the prior year, and the number of consecutive
definition or due to extraordinary circumstances
years in which the state failed to achieve the
such as a natural disaster or regional recession.
work rate. Penalty may be reduced if the failure
State must replace the amount of federal penalty
is due to circumstances that caused the state to
funds with its own funds. [Section 409(a)(3) of
meet the criteria for contingency funds or is due
SSA] In addition, the state’s MOE spending
to extraordinary circumstances such as a natural
requirement rises from 75% to 80% of its historic
disaster or regional recession. Requires
level.
Secretary, in a written report to Congress, to

---

CRS-25
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
justify any waiver or penalty reduction due to
extraordinary circumstances. [Section 110]
Countable activities
Listed in law or bill
Federal law lists 12 activities that count toward
Lists six “direct” work activities. Generally these
Lists 17 countable activities. Continues current
meeting the participation standards. Nine
six activities must account for most weekly hours:
law list of 12 activities (treating the nine priority
activities have priority status and must account for
unsubsidized jobs, subsidized private jobs,
activities in current law as direct work [core]
most weekly hours: unsubsidized jobs, subsidized
subsidized public jobs, on-the-job training,
activities). Adds five “qualified” activities:
private jobs, subsidized public jobs, work
supervised work experience, and supervised
postsecondary education (including a parents as
experience, on-the-job training; job search,
community service. [Section 110(e)]
scholars program, described below), adult
community service; vocational educational
literacy programs or activities, substance abuse
training providing child care for certain TANF
counseling or treatment, programs or activities
recipients. Three other activities can receive work
designed to remove work barriers, as defined by
credit: job skills training directly related to
the state, and work activities authorized under
employment; education directly related to work
any waiver for any state that was continued
(high-school dropouts only), and secondary
under Section 415 before the date of enactment
school attendance (high school dropouts). On one
of this bill. Under some conditions, treats some
occasion per person, a state may treat three or
of the qualified activities as “rehabilitative” ones
four days weekly of job search as a full week’s
(see below).
participation. [Section 407(d) of the SSA] See
Required Hours of Work.

---

CRS-26
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
State options for
None
States may define any other activity as countable
Permits a state to deem a single parent caring for
activities
(generally for non-core hours) so long as it leads to
a dependent with a physical or mental
self-sufficiency and is consistent with the purposes
impairment to be meeting all or part of the
of TANF. [Section 110(e)]
family’s work requirement. Permits a state to
define countable work activities for persons
complying with a family self sufficiency plan
and living in areas of Indian country or an
Alaskan native village with high “joblessness.”
To qualify for this option, the state must include
in its TANF plan a description of its policies for
these areas. Also, as noted above, allows states
to define work-barrier removal activities and to
adopt activities authorized under any waiver for
any state that was continuing before the date of
enactment. [Section 109(f)]
Time limits on
Job search — six weeks usual maximum (with no
No provision (maintains current law).
Removes time limits on job search and
activities
more than four consecutive weeks). Period
vocational educational training for persons
allowed for job search doubles to 12 weeks if the
receiving qualified rehabilitative services.
state meets the unemployment or increased food
Deletes requirement that only four consecutive
stamp caseload criteria for a needy state under the
weeks of job search can be counted within the
contingency fund or its unemployment rate is
normal six week limit. Doubles the permissible
more than 50% of the national average.
length of job search if the state meets the
Vocational educational training, 12 month limit.
unemployment rate or increased food stamp
[Section 407(d) of the SSA]
caseload criteria for a “needy state” under the
contingency fund definition. [Section 109(f)]
For three consecutive months within 24 months,
For three months in any 24-month period, a state
persons may be deemed to meet the 24-hour
may give work credit for any hours spent in one
weekly direct work requirement by engaging in
of the five “qualified” activities above — even if
short-term “qualified” activities chosen by the state
the person has not engaged for 24 hours weekly
to promote self-sufficiency (examples listed in the
in direct work. To receive credit, the person

---

CRS-27
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
bill are substance abuse counseling or treatment;
must engage for an average of at least 24 hours
rehabilitation treatment and services; work-related
in a qualified activity, and the activity must be in
education or training directly enabling the family
her self-sufficiency plan. [Section 109(f)]
member for work; and job search or job readiness
assistance). [Section 110(e)]
On a case-by-case basis, and in order to permit a
In some cases a state may give work credit for a
person to complete a certificate program or other
second three-month period (within the 24-month
work-related education or training program, a state
limit) — sometimes called the 3+3 plan — to
may give direct work credit for engaging in a
persons engaged in a combination of qualified
qualified program for a total of four months within
rehabiliitative activities and priority work
a 24-month period. [Section 110(e)]
activities. Eligible for this period of extended
time are persons whose family self-sufficiency
plan requires engagement in one of three
qualified rehabilitative services, namely, adult
literacy programs or activities, participation in a
program designed to increase proficiency in the
English language, and substance abuse or
mental health treatment. Total hours of their
activity must average 24 hours weekly. {Section
109(f)]
Numerical limits
No more than 30% of persons credited with work
Omits this provision from amended section on
Continues the 30% cap, but provides that it does
may consist of persons participating in vocational
counting participation.
not apply to persons in a 3 + 3 program
educational training or may be teen parents who
receiving qualified rehabilitative services or to
are deemed to be working because of satisfactory
persons engaging in vocational educational
attendance at secondary school or because of
training as a supplementary activity after
spending 20 hours weekly in education directly
meeting the 24 hour “core” requirement.
related to employment. [Section 407(c)(2)(D) of
[Section 109(f)]
SSA]

---

CRS-28
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Parents as scholars
States may use TANF funds and MOE state funds
No provision.
Allows states to establish a program (under
for postsecondary education. However, unless it
Section 107) of undergraduate postsecondary
is defined by the state as “vocational educational
education (parents as scholars) or vocational
training,” postsecondary education is not
educational training for up to 10% of TANF
creditable toward TANF work participation
families. Hours of participation in the program
requirements.
would be countable toward meeting state work
requirements. Students could also receive credit
for hours spent in one of the nine “direct” work
activities of current law or in work study,
practicums, internships, clinical placements,
laboratory or field work, or other activities that
would enhance their employability, as
determined by the state, or in study time (at the
rate of not less than one hour for every hour of
class time and not more than two hours for every
hour of class time. Students’ total time in
education, core work, work study, laboratory or
field work, study time, etc., would be countable
against hours requirements. Also, students could
be credited as one working family if, in addition
to complying with the full-time educational
participation requirements of their educational
program, they engaged in one of the countable
work activities above for at least the following
number of hours: six hours weekly in the first
year, eight hours in the second year, 10 hours in
the third year, and 12 hours in the fourth and any
later year. For good cause, states could modify
these hour requirements. To be eligible for these
programs, recipients would be required to
maintain satisfactory academic progress (as

---

CRS-29
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
defined by the institution operating the
program). With good cause exceptions,
participants would be required to complete
requirements of a degree or vocational
educational training program within the normal
time frame for full time students. [Section
107(d)]
Required hours of
Generally, to count toward the all-family rate,
Generally, states must engage all families with a
Establishes standard TANF work weeks as
work activity
average weekly participation of 30 hours (20
“work- eligible” member (married or single
follows: 24 hours for a single parent with a child
hours in priority work activities) is required.
household head who receives TANF assistance) in
under age six; 34 hours for a single parent with
However, in the case of single parents with a
a direct work activity or alternative self-sufficiency
a child over six (with 24 hours in a priority
preschool age child (who constitute half of all
activity for an average of 40 hours weekly (the
activity) 39 hours for a two-parent family (but
TANF cases), the hours requirement is 20 per
actual standard is 160 hours per month, equal to a
55 hours if that family receives federally funded
week. For two-parent families the standard is 35
weekly average of 37 hours) — of which 24 hours
child care) — with most hours in a priority
hours (30 in priority work activity), but increases
must be in one of the direct work activities listed in
activity. Families meeting the standard are
to 55 hours (50 in priority activities) if the family
the law and up to 16 hours may be in a TANF-
counted as one family in calculating the state’s
receives federally-subsidized child care. [Section
purposeful activity chosen by the state. [Section
work participating rate. Those exceeding the
407(c)(1) of the SSA] For a single parent caring
110(e)]
standard receive extra credit, and some who fall
for a child under age six, 20 hours of participation
short of the standard receive partial credit (see
satisfies the standard. [Section 407(c)(2)(B) of
below). [Section 109(f)]
the SSA]
Teen parents are deemed to meet the weekly hour
Essentially the same as current law. Teen parents
Counted as one working family is a teen parent
participation standard by maintaining satisfactory
are deemed to satisfy the (40-hour weekly) work
who maintains satisfactory school attendance or
attendance in secondary school (or the equivalent
rule by virtue of satisfactory school attendance (or
participates in education directly related to
in the month) or by participating in education
the equivalent in the month) or by participating in
employment for an average of 20 hours weekly.
directly related to employment for an average of
education directly related to employment for an
[Section 109(f)]
20 hours weekly. [Section 407(c)(2)(C) of the
average of 20 hours weekly [Section 110(e)].
SSA]

---

CRS-30
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Partial work credit
None
Families who meet the 24-hour weekly direct work
Families who meet core work requirements but
requirement but fail the 40-hour standard, receive
fail the full standard receive partial credit as
credit for all hours worked (but zero credit unless
follows: Credited as .675 of a family are single
meet the 24-hour direct work rule). Note:
parent families (with or without a child under
Generally, to receive any credit for hours below the
six) who have 20-23 hours of work and two-
standard, families must engage for all counted
parent families with 26-29 hours of work (40-44
hours in one of the six direct work (core) activities.
hours if they receive federally subsidized child
Exception, as noted above (time-limited activities)
care). Counted as .75 of a family are single
a state may give direct work credit for hours spent
parent families without a preschool child who
on education or training (as qualified activities) for
work 24-29 hours and two-parent families with
up to four months in a 24-month period.
30-34 hours (45-50 if they receive child care).
Counted as .875 of a family are single parent
families without a preschool child who work 30-
33 hours and two-parent families who work 35-
38 hours (51-54 hours if they receive child care).
[Section 109(f)] Note: generally, to receive any
credit for hours below the 24 hour standard, a
single parent family must engage for all these
hours in one of the nine direct work activities
and a two-parent family must spend all hours at
or below 34 weekly in one of these activities (50
hours if the family receives federally funded
child care and has no disabled member).
However, as noted above (time-limited activities
— a state may give work credit for any hours
spent in one of the five qualified activities for up
to six months in a 24-month period).

---

CRS-31
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Extra work credit
None
Counts all hours worked above the 40 — hour full
Families who exceed the standard hourly work
weekly standard, provided 24 hours are spent in
requirement receive extra credit, as follows.
direct work (or, for a limited time, in certain other
Credited as 1.05 of a family are single-parent
qualified activities) and no more than 16 hours are
families who work 35-37 hours and two-parent
in non-priority activities. [Section 110(c)]
families who work 40-42 hours (56-58 hours if
they receive child care). Credited as 1.08 of a
family are single parent families who work 38 or
more hours and two-parent families who work
43 or more hours (59 or more hours if they
receive child care). [Section 109(f)]
Marriage Promotion
TANF goals and
Two purposes relate to marriage. One goal is to
The stated purpose of promoting the formation and
Same as House bill. [Section 103(d)]
purposes
end dependency of needy parents on government
maintenance of two-parent families is modified to
benefits, with one of the stated means of
read: encourage the formation and maintenance of
accomplishing the goal specified as marriage. A
healthy, two-parent married families and
second purpose is to encourage the formation and
encourage responsible fatherhood. [New language
maintenance of two-parent families.
in italics] [Section 101]
Funding for
No provision for special grants states may use
Appropriates $100 million annually for FY2003
Appropriates $100 million annually for FY2004
marriage promotion
TANF block grants to promote formation and
through FY2008 for 50% competitive matching
through FY2008 for 50% competitive matching
matching grants
maintenance of two-parent families (program goal
grants to states, territories and tribal organizations
grants to states, territories, Indian tribes, and
no. 4) and to promote marriage as a means of
for programs to promote and support healthy,
tribal organizations for programs to promote and
ending dependence on government benefits (goal
married two-parent families. Note: Grants are
support healthy, married two-parent families.
no. 2).
funded by repeal of out-of-wedlock birth bonus in
Note: Grants are funded by repeal of out-of-
current law. [Section 103(b)]
wedlock birth bonus in current law. [Section
103(b)]

---

CRS-32
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Makes funds appropriated for FY2003 available to
Makes funds appropriated for each of FY2004
the Secretary through FY2004 for grants for
through FY2008 available to the Secretary until
FY2003). [Section 103(b)]
expanded.
Also, permits grantees to use funds without
fiscal year deadline. [Section 103(b)]
Provides that federal TANF funds used for
Provides that federal TANF funds used for
marriage promotion must be treated as state
marriage promotion may be treated as state
matching funds for marriage promotion grants
matching funds for marriage promotion grants
(Section 111(b)(1) See Maintenance of Effort for
(Section 103(b). See Maintenance of Effort for
treatment of TANF spending on behalf of marriage
treatment of TANF spending on behalf of
promotion.
marriage promotion.
No provision.
Provides that general rules governing uses of
TANF block grant funds (other than
administrative limit) shall not apply to marriage
promotion grants. [Section 103(b)]

---

CRS-33
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Allowable activities
Grants may be used for many activities, including
Lists same activities as House bill, but specifies
for marriage
advertising campaigns; education in high schools;
that participation must be voluntary in marriage
promotion grants
marriage education, marriage skills and
education, marriage skills and relationships skills
relationship skills programs that may include
programs, pre-marital education and married
parenting skills, financial management, conflict
skills training, marriage enhancement and
resolution, and job and career advancement for
divorce reduction programs, and marriage
non-married pregnant women and expectant
mentoring programs. Also, allows marriage
fathers; pre-marital education and marriage skills
education, marriage skills, and relationship skills
training for engaged couples and individuals and
programs for non-married recent parents.
couples interested in marriage; marriage
enhancement and marriage skills training programs
for married couples; divorce reduction programs;
marriage mentoring programs; and programs to
reduce marriage disincentives in means — tested
programs, if offered in conjunction with any other
listed activity.
No provision.
Forbids award of a grant unless the applicant has
consulted with experts in domestic violence or
with community domestic violence coalitions in
developing [marriage promotion] programs or
activities. Application must describe how the
program/activities will deal with issues of
domestic violence and how the grantee will
ensure that participation in the marriage
promotion program is voluntary. [Section
103(b)]

---

CRS-34
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Research and
No special provision to fund research or
Appropriates $102 million each for FY2003
Appropriates $100 million each for FY2004
demonstrations on
demonstrations. However, available TANF
through FY2008 for research and demonstration
through FY2008 for research and demonstration
marriage promotion
r e s e a r c h fu n d s ( s e e R e s e a r c h a n d
projects and for technical assistance to states, tribal
projects and for technical assistance to states,
Demonstrations, below) and other research funds
organizations, and other entities chosen by the
tribal organizations, and other entities chosen by
provided to the Department of Health and Human
Secretary. Specifies that these funds must be spent
the Secretary. Specifies that 80% of these funds
Service may be used to evaluate marriage
primarily on activities allowed under marriage
must be spent on research and demonstration
promotion initiatives.
promotion grants (see above). (Sets aside $2
projects, or for providing technical assistance, in
million yearly for demonstration projects for
connection with activities allowed under
coordination of child welfare and TANF services
marriage promotion grants (see above). [Section
to tribal families at risk of child abuse or neglect.)
114(a)]
Provides that funds appropriated for FY2003 shall
remain available through FY2004. [Section
115(a)]
Forbids Secretary to pay these research funds to
an entity that has not consulted with domestic
violence experts in developing marriage
promotion programs (see above). [Section
114(a)]
State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions
State plan
Each state must outline (generally in a plan
Adds requirement that each state describe what it
Essentially the same as House bill. [Section
requirements
effective for three fiscal years), how it intends to:
will do to end dependence of needy families on
101]
conduct a program providing cash assistance to
government benefits and reducing poverty by
needy families with children and providing
promoting job preparation and work and;
parents with work and support services; require
encourage formation and maintenance of healthy,
caretaker recipients to engage in work (at state
two-parent married families, encourage responsible
definition) after 24 months of aid or sooner, if
fatherhood, and prevent and reduce the incidence
then judged work-ready; ensure that caretakers
of out-of-wedlock pregnancies. Adds requirement
engage in work in accordance with the law; take
that each state describe any strategies that it is
steps deemed necessary by the state to restrict use
undertaking to deal with (a) employment retention

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CRS-35
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
and disclosure of information about recipients;
and advancement for recipients; (b) efforts to
establish goals and take action to prevent/reduce
reduce teen pregnancy; (c) services for struggling
the incidence of out-of-wedlock pregnancies; and
and noncompliant families and for clients with
conduct a program providing education and
special problems; and (d) program integration,
training on the problem of statutory rape. In
including the extent to which employment and
addition, the plan must indicate whether the state
training services are provided through the One-
intends to treat families moving into the state
Stop Career Center System created under the
differently from others; indicate whether the state
Workforce Investment Act of 1998. Requires each
intends to aid noncitizens; set forth objective
state to describe strategies to improve program
criteria for benefit delivery and for fair and
management and performance. [Section 112].
equitable treatment; and provide that, unless the
governor opts out by notice to HHS, the state will
Strikes provision requiring goals to reduce out-of-
require a parent who has received TANF for two
wedlock pregnancies and replaces it with
months and is not work-exempt to participate in
requirement that states establish specific numerical
community service employment. In the plan the
performance goals, measures, measurement
state must certify that it will operate a child
methodology, and plans to improve outcomes
support enforcement program and a foster care
regarding each of TANF’s four goals.
and adoption assistance program and provide
equitable access to Indians ineligible for aid under
Specifies that performance measures must be
a tribal plan. It must certify that it has established
consistent with criteria used by the Secretary in
standards against program fraud and abuse. It
establishing targets for the performance
must specify which state agency or agencies will
achievement bonus.
administer and supervise TANF. In addition, the
state may opt to certify that it has established and
Strikes provision requiring community service
is enforcing procedures to screen and identify
after two months of benefits unless state opts out.
recipients with a history of domestic violence, to
[Section 112].
refer them to services, and to waive program
rules for some of them. [Section 402(a) of the
SSA]

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CRS-36
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Authorizes states to administer and provide TANF
Requires state plans to describe strategies and
If state is undertaking efforts to engage faith-
services through contracts with charitable,
programs to engage religious organizations in the
based organizations in providing TANF-funded
religious, or private organizations and to pay
provision of TANF-funded services. [Section 112]
services or that otherwise relate to the charitable
recipients by means of certificates, vouchers, or
choice provision of PRWORA, requires state
other disbursement forms redeemable with these
plans to describe these strategies and programs.
organizations. Stipulates that any religious
[Section 101(a)]
organization with a contract to provide welfare
services shall retain independence from
government and requires states to provide an
alternative provider for a beneficiary who objects
to the religious character of the designated
organization. [Section 104 of PRWORA]
States must certify that they will provide equitable
Requires tribal family assistance plans to provide
Same as House bill. [Section 101(c)]
access to TANF to Indians who are ineligible for
assurance that the state in which the tribe is located
tribal family assistance programs. [Section 402(a)
has been consulted regarding the plan and its
of the SSA]
design. [Section 112]
Requires plan to describe how the state intends to
Same as House bill. [Section 101(c)]
encourage equitable treatment of healthy, married
two-parent families under TANF. [Section 103(a)]
No provision.
Requires the plan to include a report detailing
progress toward full engagement. [Section
101(a)]
No provision.
If state provides TANF-funded transportation
aid, requires certification by the governor that
state and local transportation officials and
planning bodies have been consulted in
development of the plan. [Section 101(a)]

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CRS-37
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
No provision.
Requires the HHS Secretary to develop a
proposed Standard State Plan Form for use by
states not later than nine months after date of
enactment of the bill.
Requires states to make drafts of proposed plans
(and plan amendments) available to the public
through a state-maintained Internet website and
through other means found appropriate by the
state available to the public proposed plan states
also must make TANF state plans in effect for
any fiscal year available to the public, by the
above means. [Section 101(b)].
Performance
No provision. (However for the purpose of
Requires the Secretary, in consultation with the
Same provision. [Section 101(d)]
measures
awarding performance bonuses, the Secretary is to
states, to develop uniform performance measures
develop a formula in consultation with the
to judge the effectiveness and improvement of state
national Governors Association and the American
programs in accomplishing TANF purposes.
Public Welfare Association.)
[Section 112(c)]
Rankings of states
Directs HHS Secretary to rank states in order of
Deletes “long-term” qualifier from private job
Same as House bill except that it adds three other
success in moving recipients into long-term
measure. Adds employment retention and ability
new ranking factors: the degree to which
private jobs and reducing the proportion of out-
to increase wages to factors used for rankings.
recipients have workplace attachment and
of-wedlock births and in both cases to review
[Section 112(d)]
advancement, reducing the overall welfare
programs of the three states with highest and
caseload, and, when a practicable method of
lowest ratings. [Section 413(d) and(e) of the SSA]
calculation becomes practicable, diverting
persons from making formal applications to
TANF. [Section 101(e)]

No provision.
In ranking states, Secretary must take into
account the average number of minor children
living at home in families with income below the

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CRS-38
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
poverty line and the amount of TANF funding
provided to each state for these families.
[Section 101(e)]
Data collection and
States are required to collect monthly, and report
Requires quarterly reports to cover families in
Same as House bill. [Section 112(a)]
reporting
quarterly, disaggregated case record information
MOE-funded separate state programs, as well as
(but may use sample case record information for
those in TANF state programs. Permits the
this purpose) about recipient families in the
Secretary to limit use of sampling by designating
TANF program. [Section 411(a) of the SSA]
core elements that must be reported for all families.
Required family information includes:
[Section 113(a)]
— county of residence,
— whether a member received disability benefits,
— ages of members,
— size of family and the relation of each member
to the family head,
— employment status and earnings of the
employed adult,
— marital status of adults;
— amount of unearned income received by
family members;
— citizenship of family members;
— number of families and persons receiving aid
under TANF (including the number of two-parent
and one-parent families);
— total dollar value of assistance given;
— total number of families and persons aided by
welfare-to-work grants (and the number whose
participation ended during a month);
— number of noncustodial parents who
participated in work activities;
— for each teenager, whether he/she is the parent
of a child in the family.

---

CRS-39
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
— race and educational level of each adult;
Adds race and educational level of each minor
Same as House bill.
— race and educational level of each child;
parent. Deletes educational level of each child.
— whether the family received subsidized
Strikes “if the latter two, the amount.”
housing medicaid, food stamps, or subsidized
child care (and if the latter two, the amount);
— number of months that the family received
Strikes “each type” of aid and requires the reason;
Same as House bill.
each type of aid under the program;
if applicable, for extending aid beyond 60 months.
— number of hours per week, if any, that adults
Adds to reported activity list: training and other
Same as House bill.
participated in specified activities (education,
activities directed at TANF purposes. Adds and
subsidized private jobs; unsubsidized jobs, public
(job) placement to job search. Omits job skills
sector jobs, work experience, or community
training and vocational education. Specifies that
service, job search, job skills training or on-the
work experience and community service are
job training, vocational education);
“supervised.”
From a sample of closed cases, the quarterly
Deletes marriage.
Same as House bill.
report is to give the number of case closures
because of employment, marriage, time limit,
sanction, or state policy.
— information needed to calculate participation
Adds information needed to calculate progress
Same as House bill.
rates;
toward universal engagement.
— type and amount of assistance received under
Deletes type of assistance.
Same as House bill.
the program; including the amount of and reason
for any reduction of assistance;
Requires new information on recipient families in
Same as House bill.
the quarterly report:
— the date the family first received aid on the
basis of its most recent application;
— whether a self-sufficiency plan is established
for the family;
— the marital status of the parents of any child in
the family at the birth of the child, and if the

---

CRS-40
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
parents were not then married, whether the
paternity of the child has been established.
Requires quarterly reports to include the number of
Same as House bill. [Section 112(c)]
families and persons who became ineligible to
receive TANF during the month (broken down by
the number that lost eligibility because of earnings,
changes in family composition that result in higher
earnings, sanctions, time limits, or other specified
reasons). [Section 113(c)]
Use of sample data
For quarterly reports, permits states to submit
Authorizes Secretary to designate core data
Same as House bill. [Section 112(b)]
disaggregated case record data information on a
elements that must be reported for all families.
sample of families. [Section 411(a) of the SSA]
[Section 113(b)]
Monthly state
No provision.
Requires states to submit monthly reports on the
Same as House bill except that it also requires
reports
number of families and persons receiving
monthly reports on the number of families and
assistance. [Section 113(e)]
persons receiving assistance under separate state
programs funded with MOE dollars. [Section
112(e)].
Annual state reports
Regulations require states to annually submit a
Requires states to submit an annual report on
Same as House bill. [Section 112(e)]
program report (by December 31 of each year)
characteristics of the state TANF program and
providing financial eligibility rules for all
other state programs funded with MOE funds.
programs funded by TANF or state MOE funds.
Required information: program name and purpose,
For each MOE program, reports are to include the
description of program activities, sources of
name, purpose, and eligibility criteria.
funding, number of beneficiaries, sanction policies,
and any work requirements. [Section 113(e)]
Beginning with FY2005, states must submit to
Same as House bill. [Section 112(e)]
HHS an annual report on achievement and
improvement under numerical performance goals
and measures.
Data elements
The HHS Secretary shall prescribe regulations to
The HHS Secretary shall prescribe regulations
Same as House bill. [Section 112(d)]
define data elements for required state reports and
needed to define data elements and to collect

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CRS-41
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
shall consult with the Secretary of Labor in
necessary data and shall consult with the National
defining data elements regarding programs
Governors Association, the American Public
operated with welfare-to-work funds.
Human Services Association, the National
Conference of State Legislatures, and others in
defining the data elements. [Section 113(d)]
HHS reports
Requires the HHS Secretary to make annual
Sets July 1 of each fiscal year as the deadline for
Same as House bill. [Section 112(f)]
reports to Congress that include state progress in
the report. Deletes applicant families from the
meeting TANF objectives (increasing
report. Adds requirement to report on
employment and earnings of needy families and
characteristics of MOE-funded programs. [Section
child support collections, and decreasing out-of-
113(f)]
wedlock pregnancies and child poverty),
demographic and financial characteristics of
applicants, recipients, and ex-recipients;
characteristics of each TANF program; and trends
in employment and earnings of needy families
with children.
Requires the HHS Secretary to submit to four
committees of Congress annual reports on
specified matters about three groups: children
whose families lost TANF eligibility because of a
time limit, children born after enactment of TANF
to teen parents, and persons who became teen
parents after enactment. [Section 413(g) of the
SSA]
Single audit reports
TANF payments to states are subject to the Single
The Secretary, within three months of receiving an
No provision.
Audit Act.
audit from a state, shall analyze it to identify the
extent and nature of problems related to the state’s
oversight of contracts between nongovernmental
entities and the state TANF program. [Section
113(g)]

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CRS-42
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Research,
evaluations, and
national studies
Research on state
Requires HHS Secretary to conduct research on
Continues these provisions and appropriates $15
Same as House bill. [Section 114(b)]
programs
effects, costs, and benefits of state programs.
million annually for them through FY2008.
Provides that Secretary may help states develop
[Section 115]
innovative approaches to employing TANF
recipients and shall evaluate them. For six years,
appropriates $15 million yearly and directs how it
shall be divided. [Section 413(h) of the SSA.
(Note: In subsequent appropriation acts,
Congress has rescinded these provisions and
appropriated research funds on a less prescriptive
basis under Section 1110 of the Social Security
Act, which deals with cooperative research and
demonstration projects.)
Census Bureau
Directs the Census Bureau to expand the Survey
Appropriates $10 million annually for FY2004
Same as House bill. [Section 115(a) and (c)]
study
of Income and Program Participation (SIPP) to
through FY2008 to the Census Bureau. Directs the
provision.
obtain data with which to evaluate TANF’s
Bureau to implement or enhance a longitudinal
impact on random national sample of recipients.
survey of program participation to permit
Appropriates $10 million annually for seven
assessment of outcomes of continued reform on the
years. [Section 414 of the SSA]
economic and child well-being of low-income
families with children, including those who
received TANF-funded aid or services. Survey
content should include information needed to
examine the issues of out-of-wedlock childbearing,
marriage, welfare dependency, beginning and
ending of spells of assistance, work, earnings, and
employment stability. To the extent possible,
survey is to provide state representative samples.
Funds are to remain available through FY2008 for
this survey. [Section 116(a)]

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CRS-43
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
No provision.
Requires the secretary of Commerce to make
reports to the Ways and Means and Finance
Committees on the well-being of children and
families, based on data collected in the above
study. First report is due two years after
enactment; the second one, five years after
enactment. [Section 115(b)
General Accounting
Directs the General Accounting Office to study the
No provision.
Office study
combined effect of the phase-out rates for federal
programs that provide support to low-income
persons and families moving from welfare to work,
at all earning levels up to $35,000 per year, for at
least five states, including Wisconsin and
California. Study is to include any potential
disincentives to marry or achieve independence
that are created by the combined phase-out rates.
Report is due to Congress not later than one year
after enactment. [Section 116(b)]
Waivers and
Permits the HHS Secretary to waive compliance
Creates “superwaiver” authority for states (or
Creates “superwaiver” authority for up to 10
program
with requirements for TANF state plans (and for
portions of a state) to coordinate rules of specified
states (including any portion of a state) to
coordination
child support plans), but not for any other part of
programs for low-income families. Covers these
coordinate rules of three specified programs for
TANF law (including work standards, time limits,
10 programs and activities: TANF, Welfare-to-
low-income families (all under jurisdiction of the
funding rules, and penalties). [Section 1115 of
Work grants, SSBG, Job Opportunities for Low-
Finance Committee): TANF, SSBG, child care
the SSA]
Income Individuals (JOLI), Title I of WIA
entitlement funds. Essentially the same as in the
(excluding JOB Corps), Adult Education and
House bill are most provisions, including:
Family Literacy Act, CCDBG, U.S. Housing Act
application procedures, rules for cost neutrality,
(excepting Section 8 rental assistance and set-
non-waivable provisions, program purposes, and
asides for the elderly and disabled), Homeless
project duration. Evaluation rules are more
Assistance Act; and the food stamp program.
detailed. Applicants must give assurances that
Specified provisions (including non-financial food
they will obtain an evaluation by an independent
stamp rules and any funding restriction in an
contractor and that random assignment of clients
appropriations act) could not be waived. Also non-
to services and control groups will be used to the
waivable: Civil rights provisions, program
maximum extent feasible. [Section 114(c)]

---

CRS-44
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
purposes or goals, state spending requirements,
health or safety rules, labor standards, and others
Funds could not be transferred from one account to
another, and projects could not increase federal
costs. Waivers would be valid for up to five years.
Purposes: supporting working persons and
families, helping families escape welfare
dependency, promoting child well-being, or
helping build stronger families. Applications to
waive specific provisions of two or more programs
could be made by the head of a state entity or a
sub-state entity administering the programs.
Waiver approval would be required by each
relevant Secretary. In general, an application
would be deemed approved unless disapproved
within 90 days. Requires annual reports to
Congress. Applicants must give assurance that
they will conduct ongoing and final evaluations.
[Section 601]
Authorizes five states to replace food stamps with
No provision..
demonstrations of food assistance block grant
projects. [Section 602]
Not later than six months after enactment, requires
No provision.
the Secretaries of HHS and Labor to submit a joint
report describing common or conflicting data
elements, definitions, performance measures, and
reporting requirements in the Workforce
Investment Act and TANF law. [Section 115(d)]

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CRS-45
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Definition of
Receipt of assistance by a parent or other
Defines “assistance” to mean payment, by cash,
Same as House bill. [Section 117]
assistance
caretaker relative triggers work and time limit
voucher, or other means, to or for an individual or
rules. Law does not define the term. By
family to meet a subsistence need, but not
regulation, assistance is defined as ongoing aid to
including costs of transportation or child care. It
meet basic needs, plus support services such as
excludes non-recurrent short-term benefits.
child care and transportation subsidies, for
[Section 117]
unemployed recipients. It excludes non-recurrent
short term benefits.
Federally-funded “assistance” to a family with an
adult is limited to 60 months; states may impose
shorter time limits. By regulation, assistance is
defined as ongoing aid to meet basic needs, plus
support services such as child care and
transportation subsidies, for unemployed
recipients. It excludes non-recurrent short term
benefits.
Technical
Makes a number of technical corrections to current
Same as House bill [Section 120]
corrections
law. [Section 118]
State option to
The Workforce Investment Act (WIA) makes
Makes state TANF programs mandatory partners
No provision.
make TANF
TANF an optional partner with one-stop
with one-stop employment training centers
programs
employment training centers.
established under the Workforce Investment Act
mandatory partners
unless the governor of a state decides otherwise
with one-stop WIA
and so notifies the Secretaries of Health and
centers
Human Services and Labor. [Section 120].
Sense of the
Provides that it is the sense of Congress that a state
No provision.
Congress
welfare-to-work program should include
mentoring. [Section 121]

---

CRS-46
Current Law
H.R. 4 (House-passed)
H.R. 4 (Senate Finance Committee)
Enforcing support
Requires sponsors of immigrants to sign a legally
Not later than March 31, 2004, requires the HHS
No provision.
of immigrants by
enforceable affidavit of support. Deems all
Secretary, in consultation with the Attorney
sponsors
income and resources of a sponsor (and the
General, to submit a report on the enforcement of
sponsor’s spouse) as available to the sponsored
affidavits of support and sponsor deeming required
alien until he or she becomes naturalized or
by P.L. 104-193. [Section 115(c)]
meets a work test. [Sections 421 and 423 of the
SSA]
Extension through
Except as otherwise provided in this Act and the
No longer relevant.
FY2003
amendments made by it, activities authorized by
the TANF part of the Social Security Act (SSA)
and by Section 1108(b) of the SSA (TANF and
child welfare in the territories) shall continue
through FY2003, in the manner authorized, and at
the level provided, for FY2002. [Section 122].

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