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Pr
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The Social Services Block Grant (SSBG) is a flexible source of funds that states may use to
support a wide variety of social services activities. States have broad discretion over the use of
these funds. In 2006, the most recent year for which expenditure data are available, the largest
expenditures for services under the SSBG were for foster care services and special services for
the disabled. The FY2008 Consolidated Appropriations Act (P.L. 110-161) maintains SSBG
funding at $1.7 billion and maintains states’ authority to transfer up to 10% of their Temporary
Assistance for Needy Families (TANF) block grants to the SSBG. The $1.7 billion in regular
funds mirrors funding included in both the FY2007 and FY2006 laws, but exceeds the $1.2
billion that the President proposed for FY2008, and most recently, for FY2009. The FY2009
budget also includes a proposal to eliminate the SSBG in FY2010. This report provides SSBG
background information and tracks relevant legislation and appropriations measures.
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Title XX of the Social Security Act permanently authorizes the SSBG as a “capped” entitlement
to states. In other words, states are entitled to their share, according to a formula, of a nationwide
funding ceiling or “cap,” which is specified in the statute. Although social services for certain
welfare recipients have been authorized under various titles of the Social Security Act since 1956,
the SSBG in its current form was created in 1981 (P.L. 97-35). A special SSBG program for
enterprise communities and empowerment zones was authorized in 1993 (P.L. 103-66), but is not
currently funded. At the federal level, the SSBG is administered by the Department of Health and
Human Services (HHS), and legislation amending Title XX is reported by the House Ways and
Means Committee and the Senate Finance Committee.
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The President’s FY2009 budget, released on February 4, 2008, proposes $1.2 billion in funding
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for the SSBG in FY2009, and an elimination of the SSBG in FY2010. The Administration
contends that the grant’s flexibility and lack of state reporting requirements make it difficult to
measure its performance, and that the broad array of services funded through the SSBG often
overlap with other federal programs.
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The FY2008 appropriations process extended almost a full quarter into the fiscal year, with
continuing resolutions providing temporary funding during the time it took the House, Senate,
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and President to come to agreement on a bill. Ultimately, the President signed the Consolidated
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Appropriations Act of 2008 (P.L. 110-161) on December 26, 2007, which includes $1.7 billion for
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the SSBG ($500 million more than the President’s FY2008 request) and maintains states’
authority to transfer up to 10% of their TANF block grants to the SSBG.
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On February 15, 2007, a fourth continuing resolution was signed into law (P.L. 110-5), making
appropriations for the remainder of FY2007 and maintaining regular SSBG funding at $1.7
billion. This reflected the same amount approved earlier in 2006 by the House and Senate
Appropriations Committees (H.R. 5647 and S. 3708, respectively). The President’s budget for
FY2007 proposed to provide $1.2 billion for the SSBG, a $500 million decrease from the FY2006
appropriation. The Administration contended that “while SSBG provides State flexibility, as the
Congress intended, it fails to ensure that funds are directed towards activities that achieve
results.” In addition, it argued that “the purposes of SSBG overlap substantially with other
categorical and flexible Federal social service programs.”
Following three continuing resolutions, a bill (H.R. 3010) making FY2006 appropriations for the
Departments of Labor, HHS, and Education was signed into law (P.L. 109-149) on December 30,
2005. It included $1.7 billion for SSBG and maintained states’ authority to transfer up to 10% of
their TANF block grants to the SSBG. Both the funding and transfer provisions mirrored those
included in the appropriations laws for FY2002-FY2005.
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In addition to the $1.7 billion appropriated through the aforementioned HHS appropriations bill,
the FY2006 Defense Appropriations Act (P.L. 109-148) included SSBG funding in the amount of
$550 million for use in covering expenses related to the consequences of the Gulf Coast
hurricanes of 2005. The Defense Appropriations Act expanded the potential services for which
the additional $550 million could be used, to include “health services (including mental health
services) and for repair, renovation and construction of health facilities.” Factors used to allocate
these supplemental funds included the number of FEMA registrants from hurricanes Katrina,
Rita, and Wilma, as well as the percentage of states’ poor population. All states received a portion
of the funding, with Louisiana ($221 million), Mississippi ($128 million), Texas ($88 million),
Florida ($54 million), and Alabama ($28 million) receiving the bulk. The allocations were
announced by HHS in a February 8, 2006, press release. See http://www.hhs.gov/news/press/
2006pres/20060208a.html. On May 25, 2007, an FY2007 supplemental appropriations act was
signed into law, extending the availability of these funds for expenditure through FY2009.
(According to HHS, a balance of approximately $135 million remains unspent as of June 4,
2008.)
Table 1 shows SSBG funding levels from 1985 on, including the high of $2.8 billion, which was
provided annually from FY1991-FY1995, and the more recent lower level of $1.7 billion.
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Although $2.8 billion was the originally authorized entitlement ceiling for FY1996, Congress
reduced funding to $2.38 billion in that year. Welfare reform legislation (P.L. 104-193)
subsequently set the annual SSBG entitlement ceiling at $2.38 billion in each of fiscal years 1997
through 2002. Under the welfare reform law, the ceiling was scheduled to return to a permanent
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level of $2.8 billion in FY2003.
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After welfare reform was enacted, Congress passed an appropriations measure for FY1997 (P.L.
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104-208) that contained $2.5 billion for the SSBG, exceeding the ceiling established in the
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welfare reform law. For FY1998, President Clinton requested that the amount authorized by
welfare reform ($2.38 billion) be appropriated. However, Congress approved an FY1998
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appropriations bill (P.L. 105-78) containing $2.299 billion for the SSBG. The Senate
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Appropriations Committee explained the reduction by stating that funding is provided for social
services through other federal programs (S.Rept. 105-58). The House Appropriations Committee
expressed concern that HHS lacks information on the effectiveness of SSBG-funded activities
(H.Rept. 105-205).
In 1998, the Transportation Equity Act (TEA, P.L. 105-178), permanently reduced the SSBG
entitlement ceiling to $1.7 billion, beginning in FY2001. However, the entitlement ceiling has not
always reflected the actual appropriation. For example, the $1.725 billion appropriation level for
FY2001 (H.R. 4577) exceeded the $1.7 billion ceiling by $25 million. In addition, a TEA
provision would have limited the ability of states to transfer TANF funds into SSBG beginning in
FY2001. However, this was superseded by the FY2001 Consolidated Appropriations Act (H.R.
4577).
Table 1 shows SSBG entitlement ceilings and appropriations from FY1985-FY2008. Also shown
for FY1997-FY2006 are the amounts transferred from TANF to SSBG.
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Table 1. SSBG Funding, FY1985-FY2008
($ in billions)
Fiscal
Year
Ceiling Appropriation Fiscal
Year Ceiling Appropriation Transfer from
TANF
1985 2.7
2.725a 1997
2.380
2.5
0.6
1986 2.7
2.584b 1998
2.380
2.299
1.2
1987 2.7
2.7
1999
2.380
1.909
1.0
1988 2.750c
2.7 2000
2.380
1.775
1.1
1989 2.7
2.7
2001
1.700
1.725
0.92
1990 2.8
2.762d 2002
1.700
1.700
1.0
1991 2.8
2.8
2003
1.700
1.700
0.93
1992 2.8
2.8
2004
1.700
1.700
0.77
1993 2.8
2.8
2005
1.700
1.700
0.92
1994 2.8
2.8
2006
1.700
1.700+0.550e 0.97
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1995
2.8
2.8
2007
1.700
1.700
data not available
1996
2.381
2.381
2008
1.700
1.700
data not available
Source: Table prepared by CRS based on budget documents and data from HHS.
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a. Amount includes $25 million earmarked for training of daycare providers, licensing officials, and parents,
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including training in the prevention of child abuse in child care settings (P.L. 98-473).
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b. The entitlement ceiling for FY1986 was $2.7 billion. However, the Gramm-Rudman-Hollings legislation
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sequestration of funds for that period reduced the funding by $116 million.
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c. The 1987 Budget Reconciliation Act (P.L. 100-203) included a $50 million increase in the Title XX entitlement
ceiling for FY1988; however, these additional funds were not appropriated.
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The FY1990 appropriation included a supplemental appropriation of $100 million (P.L. 101-198). The Gramm-
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Rudman-Hollings legislation sequestration of funds for FY1990 reduced funding by $37.8 million to $2.762 billion.
e. The FY2006 Labor-HHS-Education Appropriations Act maintained regular SSBG funding at $1.7 billion. The
FY2006 Defense Appropriations Act (P.L. 109-148) provided an additional $550 million in SSBG funding, for
necessary expenses related to the consequences of hurricanes in 2005.
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Other than appropriations legislation, no bills in the 109th Congress, and none thus far in the 110th
Congress, proposing changes to the SSBG have been enacted into law. Proposals to increase
funding for SSBG were included as part of welfare reauthorization bills in the 109th Congress that
were introduced, but not passed. (S. 667 would have increased funding for the SSBG by $1
billion over five years, and both H.R. 751 and S. 6 would have provided $1.975 billion for the
SSBG in FY2006 and $2.8 billion in FY2007.) Instead, a scaled-back version of welfare
reauthorization was encompassed in reconciliation legislation signed into law (P.L. 109-171) on
February 8, 2006. That legislation does not include any of the previously proposed SSBG
provisions.
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The 1996 welfare reform law replaced Aid to Families with Dependent Children (AFDC) with a
block grant to states, called Temporary Assistance for Needy Families (TANF), under Title IV-A
of the Social Security Act. The law allowed states to transfer up to 10% of their annual TANF
allotments into the SSBG. Under provisions of the Transportation Equity Act of 1998 (P.L. 105-
178), the amount that states could transfer into SSBG was to be reduced to 4.25% of their annual
TANF allotments, beginning in FY2001. However, this provision was superseded in FY2001 by
the FY2001 Consolidated Appropriations Act, which maintained the 10% transfer authority level.
Likewise, the FY2002 appropriations bill ultimately presented to the President maintained the
10% transfer authority for FY2002. Earlier, the House had passed its version of a Labor/HHS/Ed
appropriations bill (H.R. 3061) proposing to maintain the 10% transfer authority, while the
Senate’s amended version proposed a 5.7% transfer level. (The Senate Appropriations Committee
had recommended a 5.9% transfer authority level in S. 1536; however the full Senate, in passing
an amended H.R. 3061, would have reduced it to 5.7% as a partial offset to funding proposed in
S.Amdt. 2084, which provides increased funding for Hispanic education programs.) The transfer
authority has been maintained at 10% in FY2003-FY2008 as well.
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Over the course of FY1997-FY2006, states transferred more than $9 billion of TANF funds to the
SSBG ($974 million in FY2006 alone). Funds transferred from TANF to SSBG can be used only
for children and families whose income is less than 200% of the federal poverty guidelines.
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Under welfare reform law, states also may use SSBG funds for vouchers for families that are not
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eligible for cash assistance because of time limits under the welfare reform program, or for
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children who are denied cash assistance because they were born into families already receiving
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benefits for another child.
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SSBG funds are allocated to states according to each state’s relative population size. Grants to
Puerto Rico, Guam, the Virgin Islands, and Northern Marianas are based on their share of Title
XX funds in FY1981. No match is required for federal SSBG funds, and federal law does not
specify a sub-state allocation formula. In other words, states have complete discretion for the
distribution of SSBG funds within their borders. For tables showing state-by-state allocations of
regular SSBG funds since FY1998, see the HHS website at http://www.acf.dhhs.gov/programs/
ocs/ssbg/docs/allocs.html.
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There are no federal eligibility criteria for SSBG participants. Thus, states have total discretion to
set their own eligibility criteria (except, as described above, the welfare reform law established an
income limit of 200% of poverty for recipients of services funded by TANF allotments that are
transferred to SSBG). States also have wide discretion in the use of SSBG funds. Federal law
establishes the following broad goals toward which social services must be directed:
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• achieving or maintaining economic self-support to prevent, reduce, or eliminate
dependency;
• achieving or maintaining self-sufficiency, including reduction or prevention of
dependency;
• preventing or remedying neglect, abuse, or exploitation of children and adults
unable to protect their own interests, or preserving, rehabilitating or reuniting
families;
• preventing or reducing inappropriate institutional care by providing for
community-based care, home-based care, or other forms of less intensive care;
and
• securing referral or admission for institutional care when other forms of care are
not appropriate, or providing services to individuals in institutions.
The following are examples of social services that may relate to these broad goals:
child care, protective services for children and adults, services for children and adults in
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foster care, home management, adult day care, transportation, family planning, training and
related services, employment services, information, referral and counseling, meal preparation
and delivery, health support services, and services to meet special needs of children, aged,
mentally retarded, blind, emotionally disturbed, physically handicapped, alcoholics and drug
addicts.
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SSBG funds also may be used for administration, planning, evaluation, and training. States may
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transfer up to 10% of SSBG funds to block grants for health activities and low-income home
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energy assistance. However, the law also contains certain prohibitions on the use of SSBG funds.
Specifically, SSBG funds cannot be used for capital purchases or improvements; cash payments
to individuals (except that welfare reform allows vouchers for certain families, as described
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above); payment of wages as a social service; medical care; social services for residents of
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institutions; public education; child care that does not meet applicable state or local standards; or
services provided by anyone excluded from participation in Medicare or other Social Security Act
programs. In addition, SSBG funds may not be used for items or services related to assisted
suicide (this provision was added in 1997, under P.L. 105-12).
States are required to report their annual SSBG expenditures in each of 29 service categories
using a standard post-expenditure reporting form. HHS published regulations (November 15,
1993) to implement this requirement and to provide states with a uniform set of service category
definitions. Table 2 shows SSBG expenditures—separated into those made from the SSBG
allocation and those made from funds transferred from the TANF block grant—by service
category, on a national basis.
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Table 2. Title XX (SSBG): Expenditures by Service Category, 2006
SSBG Expenditures Made From
Service Category
Total SSBG
% of
SSBG
Funds Transferred
Expenditures ($)
Total
Allocation ($)
from TANF ($)
Adoption Services
19,961,779
14,535,149
34,496,928
1.2
Case Management
126,539,650
57,675,811
184,215,461
6.7
Congregate Meals
5,780,763
109,729
5,890,492
0.2
Counseling Services
20,851,525
3,020,250
23,871,775
0.9
Day Care—Adults
15,830,355
19,081
15,849,436
0.6
Day Care—Children
152,847,840
67,639,377
220,487,217
8.0
Education and Training
19,375,361
1,064,298
20,439,659
0.7
Services
Employment Services
13,953,128
182,937
14,136,065
0.5
Family Planning Services
19,528,430
18,114,412
37,642,842
1.4
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Foster Care Services—
31,307,238
6,749,197
38,056,435
1.4
Adults
Foster Care Services—
153,283,667
259,979,194
413,262,861
14.9
Children
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Health-Related Services
17,302,496
1,536,588
18,839,084
0.7
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Home-Based Services
158,591,743
23,484,670
182,076,413
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Home-Delivered Meals
26,524,499
204,279
26,728,778
1.0
Housing Services
9,322,162
6,581,101
15,903,263
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Independent/Transitional
7,654,399
1,532,654
9,187,053
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Information and Referral
13,554,211
4,488,037
18,042,248
0.7
Legal Services
15,497,959
1,001,871
16,499,830
0.6
Pregnancy and Parenting
5,007,501
2,573,260
7,580,761
0.3
Prevention and
43,729,958
90,930,394
134,660,352
4.9
Intervention
Protective Services—Adults
198,261,217
5,533,267
203,794,484
7.4
Protective Services—
133,013,954
179,235,758
312,249,712
11.3
Children
Recreation Services
970,056
489,321
1,459,377
0.1
Residential Treatment
67,071,742
51,282,375
118,354,117
4.3
Special Services—Disabled
308,671,101
79,140,810
387,811,911
14.0
Special Services—Youth at
Risk
12,853,218
3,673,300
16,526,518
0.6
Substance Abuse Services
5,024,905
757,564
5,782,469
0.2
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SSBG Expenditures Made From
Service Category
Total SSBG
% of
SSBG
Funds Transferred
Expenditures ($)
Total
Allocation ($)
from TANF ($)
Transportation
17,439,205
1,429,620
18,868,825
0.7
Other Services
95,629,183
30,626,077
126,255,260
4.6
Administrative Costs
110,800,517
30,258,411
141,058,928
5.1
Total SSBG Expenditures
1,826,179,762
943,848,792
2,770,028,554
100
Source: Table prepared by the Congressional Research Service (CRS) based on data included in the Department of
HHS’ Social Services Block Grant Program Annual Report 2006. Full report available at http://www.acf.hhs.gov/
programs/ocs/ssbg/annrpt/2006/index.html.
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Melinda Gish
Section Research Manager
mgish@crs.loc.gov, 7-4618
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