.

The Temporary Assistance for Needy Families
(TANF) Block Grant: A Primer on TANF
Financing and Federal Requirements
Gene Falk
Specialist in Social Policy
December 22, 2010
Congressional Research Service
7-5700
www.crs.gov
RL32748
CRS Report for Congress
P
repared for Members and Committees of Congress

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The Temporary Assistance for Needy Families (TANF) Block Grant

Summary
The Temporary Assistance for Needy Families (TANF) block grant provides federal grants to
states for a wide range of benefits, services, and activities. It is best known for helping states pay
for cash welfare for needy families with children, but it funds a wide array of additional activities.
TANF was created in the 1996 welfare reform law (P.L. 104-193). P.L. 111-291 provides TANF
funding through the end of FY2011.
TANF provides a basic block grant of $16.5 billion to the 50 states and District of Columbia, and
$0.1 billion to U.S. territories. Additionally, 17 states qualify for supplemental grants. TANF also
requires states to contribute from their own funds at least $10.4 billion for benefits and services to
needy families with children—this is known as the maintenance-of-effort (MOE) requirement.
States may use TANF and MOE funds in any manner “reasonably calculated” to achieve TANF’s
statutory purpose. This purpose is to increase state flexibility to achieve four goals: (1) provide
assistance to needy families with children so that they can live in their own homes or the homes
of relatives; (2) end dependence of needy parents on government benefits through work, job
preparation, and marriage; (3) reduce out-of-wedlock pregnancies; and (4) promote the formation
and maintenance of two-parent families.
Though TANF is a block grant, there are some strings attached to states’ use of funds, particularly
for families receiving “assistance” (essentially cash welfare). States must meet TANF work
participation standards or be penalized by a reduction in their block grant. The law sets standards
stipulating that at least 50% of all families and 90% of two-parent families must be participating,
but these statutory standards are reduced for declines in the cash welfare caseload. (Some families
are excluded from the participation rate calculation.) Activities creditable toward meeting these
standards are focused on work or are intended to rapidly attach welfare recipients to the
workforce; education and training is limited.
Federal TANF funds may not be used for a family with an adult that has received assistance for
60 months. This is the five-year time limit on welfare receipt. However, up to 20% of the
caseload may be extended beyond the five years for reason of “hardship,” with hardship defined
by the states. Additionally, states may use funds that they must spend to meet the TANF MOE to
aid families beyond five years.
TANF work participation rules and time limits do not apply to families receiving benefits and
services not considered “assistance.” Child care, transportation aid, state earned income tax
credits for working families, activities to reduce out-of-wedlock pregnancies, activities to
promote marriage and two-parent families, and activities to help families that have experienced or
are “at risk” of child abuse and neglect are examples of such “nonassistance.” This report will be
updated.

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The Temporary Assistance for Needy Families (TANF) Block Grant

Contents
Introduction ................................................................................................................................ 1
Federal Grants and State Funds ................................................................................................... 2
Federal Grants to States......................................................................................................... 2
Basic Block Grant ........................................................................................................... 2
Supplemental Grants ....................................................................................................... 2
Contingency Fund........................................................................................................... 5
State Funds: the Maintenance-of-Effort, or MOE, Requirement ............................................. 6
TANF Benefits, Services, and Activities ...................................................................................... 9
Using Federal TANF Grants.................................................................................................. 9
Achieving TANF Goals................................................................................................... 9
“Grandfathered” Activities ............................................................................................ 10
Transfers to Other Block Grants .................................................................................... 10
Matching for Reverse Commuter Grants ....................................................................... 10
Using State MOE Funds...................................................................................................... 10
Requirements for States ............................................................................................................ 11
Rules When Funds Are Used to Provide Assistance ............................................................. 12
Definition of Assistance ................................................................................................ 12
TANF Program and Separate State Programs................................................................. 12
Federal Eligibility Rules for Assistance ......................................................................... 13
TANF Work Participation Standards.............................................................................. 13
Other Work-Related Requirements that Apply to Recipients of Assistance..................... 15
The TANF Time Limit .................................................................................................. 16
Child Support Enforcement Requirements..................................................................... 16
Special Provisions for Victims of Domestic Violence .................................................... 17
Rules When TANF or MOE Funds Are Used for Benefits and Services Other Than
“Assistance” .................................................................................................................... 17
State Accountability ............................................................................................................ 18
TANF State Plans.......................................................................................................... 18
Data Reporting.............................................................................................................. 18
Other TANF Provisions............................................................................................................. 18
Healthy Marriage and Responsible Fatherhood.................................................................... 18
Healthy Marriage Promotion Initiatives......................................................................... 19
Responsible Fatherhood Initiatives ................................................................................ 19
Tribal TANF ....................................................................................................................... 19
Research and Demonstration Funds..................................................................................... 20
Census Bureau Funds.......................................................................................................... 20

Tables
Table 1. Federal TANF State Family Assistance and Supplemental Grants, Annual Grant
Amounts .................................................................................................................................. 3
Table 2. Federal TANF and State MOE Funding Levels............................................................... 7
Table 3. Summary of Rules for the Use of Federal TANF and State MOE Funds........................ 11
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Table 4. Summary of TANF Requirements that Apply to Recipients of Assistance, by
Funding Source of the Benefit ................................................................................................ 12
Table A-1. CrediTable A-TANF Work Activities and Their Definitions ...................................... 22
Table A-2. TANF Hours Requirements for the All-Family Rate and the Two-Parent
Family Rate (Excludes Special Rule for Teen Parents), by Family Type.................................. 24
Table A-3. TANF “Core” and “Supplemental” Work Activities .................................................. 24

Appendixes
Appendix. Details of TANF Work Participation Rate Calculations ............................................. 21

Contacts
Author Contact Information ...................................................................................................... 26

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The Temporary Assistance for Needy Families (TANF) Block Grant

Introduction
The Temporary Assistance for Needy Families (TANF) block grant provides federal grants to
states for a wide range of benefits and activities. It is best known as the major source of funding
for cash welfare for needy families with children. However, federal law allows TANF funds to be
used for other benefits and services that provide economic help to low-income families with
children and support the goals of reducing out-of-wedlock pregnancies and promoting two-parent
families.
The TANF program was created in the 1996 welfare reform law (P.L. 104-193). TANF is
currently funded under a provision of the Claims Resolution Act of 2010 (P.L. 111-291) through
the end of FY2011 (September 30, 2011).
At the federal level, TANF is administered by the Department of Health and Human Services.
However, benefits and services are provided by the states. TANF programs operate in all 50
states, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. American Samoa is
eligible to operate a TANF program, but has not opted to do so.1
This report provides an overview of TANF financing and rules for state programs, describing
• federal TANF grants and state funds under a “maintenance-of-effort” (MOE)
requirement;
• how states may use federal TANF and state MOE funds to help achieve the
purpose and goals of the TANF block grant;
• rules that apply to states when they use TANF or MOE funds to provide cash
welfare to needy families with children;
• rules that apply to states when they use TANF or MOE funds for benefits and
services other than cash welfare;
• certain accountability requirements that apply to states, including requirements
that states submit plans and report data to the federal government; and
• provisions of TANF law not directly related to grants to states, such as
competitive grants for promoting healthy marriage and responsible fatherhood,
tribal TANF provisions, and research funds.2
For a less technical discussion of TANF, see CRS Report R40946, The Temporary Assistance for
Needy Families Block Grant: An Introduction, by Gene Falk.

1 American Samoa was also eligible to operate the pre-1996 program, Aid to Families with Dependent Children
(AFDC), but did not have such a program.
2 For current data and statistics on the TANF block grant, see CRS Report RL32760, The Temporary Assistance for
Needy Families (TANF) Block Grant: Responses to Frequently Asked Questions, by Gene Falk.
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Federal Grants and State Funds
Though TANF is called a block grant, it has a relatively complicated financing system. There are
four TANF grants to states—basic block, supplemental, and two contingency (recession-related)
grants.3 Additionally, states are required to spend a certain amount of their own funds on specified
TANF-related activities for needy families with children. Therefore, the TANF financial “system”
consists of both federal and state funds.
Additionally, there is funding for research, demonstrations, and technical assistance for “healthy
marriage promotion,” and competitive grants for “responsible fatherhood” initiatives. These funds
(which may go to other entities, as well as to states) are discussed in “Other TANF Provisions,”
later in this report.
Federal Grants to States
Federal TANF grants are entitlements to the states—the law entitles each state to a specified
amount of funding. The main state grants are the basic block grant, TANF supplemental grants to
certain states, and grants from a “contingency” fund.
Basic Block Grant
The 1996 welfare reform law entitled states to a basic TANF block grant equal to peak
expenditures for pre-TANF programs during the FY1992-to-FY1995 period.4 The mid-1990s
were a period when the cash welfare rolls were at their all-time high; the block grant amount is
based on federal expenditures on the cash welfare, emergency aid, and job training programs for
cash welfare families that existed in that period. The basic block grant is legislatively fixed—that
is, it does not change when the cash assistance caseload decreases or increases, nor is it adjusted
for inflation.
Supplemental Grants
During consideration of legislation that led to the 1996 law, fixed funding based on historic
expenditures was thought to disadvantage two groups of states: (1) those that had relatively high
population growth and (2) those that had historically low welfare grants relative to poverty in the
state. Therefore, additional funding in the form of supplemental grants was provided to states that

3 Before enactment of the Deficit Reduction Act of 2005 (P.L. 109-171), TANF included two bonus funds. States
competed for up to $200 million per year in “high performance bonus” funds. A second TANF bonus totaling $100
million per year was paid to the five states with the greatest reduction in out-of-wedlock birth ratios that also had a
decline in abortions. Both of these bonuses were repealed by the Deficit Reduction Act of 2005, beginning with
FY2006.
4 Under the law, basic block grant amounts for each state are the same as provided for in the original 1996 welfare
reform law (P.L. 104-193). The national total state grant and each state’s individual grant in the original TANF law is
based on the federal share of expenditures in the pre-1996 AFDC, Emergency Assistance (EA), and Job Opportunities
and Basic Skills (JOBS) training programs. The original formula entitled each state to the greatest of the average
federal share of expenditures in these programs for FY1992 through FY1994; the federal share of expenditures for
these programs in FY1994, adjusted for states that amended their EA programs in FY1994 or FY1995; or the federal
share of expenditures for these programs in FY1995. The FY1994 adjustment for EA program amendments is the
amount by which the federal share of EA expenditures in FY1995 exceeded that of FY1994.
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met criteria of high population growth and/or low historic grants per poor person. A total of 17
states (shown in Table 1, below) qualify for supplemental grants. Under P.L. 111-291,
supplemental grants are funded only through June 30, 2011, and it is estimated that they are
funded at a reduced rate for the first three quarters of FY2011.5 For FY2001 through FY2010,
supplemental grants were funded at $319 million per year. The estimated supplemental grant for
FY2011 is $211 million.
Table 1 shows the basic TANF block grant and estimated supplemental grants to the states for
FY2011. The table separately shows the amount of each state’s basic and supplemental grant
combined, and the percent of the national total of the combined grants (basic plus supplemental
grant) for each state.

Table 1. Federal TANF State Family Assistance and Supplemental Grants,
Annual Grant Amounts
(dollars in thousands)
Estimated
FY2011
State Family
Supplemental
Percent of the
State
Assistance Grant
Grants
Total
National Total
Alabama $93,315
$7,327
100,642
0.6%
Alaska 63,609
4,549
68,159
0.4
Arizona 222,420
15,803
238,223
1.4
Arkansas 56,733
4,107
60,840
0.4
California 3,733,818 0
3,733,818
22.4
Colorado
136,057 8,963 145,020 0.9
Connecticut 266,788 0
266,788
1.6
Delaware 32,291 0
32,291
0.2
District of
92,610 0
92,610
0.6
Columbia
Florida 562,340
39,899
602,239
3.6
Georgia 330,742
24,626
355,368
2.1
Hawai 98,905
0
98,905
0.6
Idaho 31,938
2,310
34,249
0.2
Illinois
585,057 0
585,057 3.5

5 P.L. 111-291 provides supplemental grant funding based on the amount of FY2011contingency funds obligated
before the date of its enactment. The amount of supplemental grant funding for December 8, 2010 (P.L. 111-291’s date
of enactment), through June 30, 2011, is equal to $490 million minus the amount of contingency funds obligated
between October 1, 2010, and December 8, 2011. According to HHS, a total of $334 million in FY2011 contingency
funds was obligated by December 8, 2011. This leaves $156 million for supplemental grants from December 8, 2010,
though June 30, 2011. In addition, HHS obligated $55 million in supplemental grants prior to P.L. 111-291, yielding a
total supplemental grant amount of $211 million for October 1, 2010, through June 30, 2011.
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Estimated
FY2011
State Family
Supplemental
Percent of the
State
Assistance Grant
Grants Total
National Total
Indiana 206,799
0
206,799
1.2
Iowa 131,525
0
131,525
0.8
Kansas 101,931
0
101,931
0.6
Kentucky 181,288 0
181,288
1.1
Louisiana 163,972
11,247
175,218
1.0
Maine 78,121
0
78,121
0.5
Maryland 229,098 0
229,098
1.4
Massachusetts 459,371
0 459,371 2.8
Michigan 775,353 0
775,353
4.6
Minnesota 267,985 0
267,985
1.6
Mississippi 86,768
5,968
92,736
0.6
Missouri 217,052 0
217,052
1.3
Montana 45,534
748
46,282
0.3
Nebraska 58,029
0
58,029
0.3
Nevada 43,977
2,466
46,443
0.3
New Hampshire
38,521
0
38,521
0.2
New Jersey
404,035
0
404,035
2.4
New
Mexico 126,103 4,328 130,432 0.8
New York
2,442,931
0
2,442,931
14.6
North Carolina
302,240
23,851
326,091
2.0
North Dakota
26,400
0
26,400
0.2
Ohio 727,968
0
727,968
4.4
Oklahoma 148,014 0
148,014
0.9
Oregon 167,925
0
167,925
1.0
Pennsylvania 719,499 0
719,499
4.3
Rhode Island
95,022
0
95,022
0.6
South Carolina
99,968
0
99,968
0.6
South Dakota
21,894
0
21,894
0.1
Tennessee 191,524
14,244
205,768
1.2
Texas 486,257
34,814
521,071
3.1
Utah 76,829
5,749
82,579
0.5
Vermont 47,353
0
47,353
0.3
Virginia 158,285
0
158,285
0.9
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Estimated
FY2011
State Family
Supplemental
Percent of the
State
Assistance Grant
Grants Total
National Total
Washington 404,332 0
404,332
2.4
West Virginia
110,176
0
110,176
0.7
Wisconsin 318,188 0
318,188
1.9
Wyoming 21,781 0
21,781
0.1
Total 16,488,667
211,000
16,699,667
100.0
Source: Table prepared by the Congressional Research Service (CRS) based on data from the U.S. Department
of Health and Human Services (HHS).
Contingency Fund
The fixed basic grant under TANF also led to concerns that funding might be inadequate during
economic downturns. The 1996 welfare reform law established a $2 billion “regular” TANF
contingency fund.6 To draw upon contingency funds, a state must both (1) meet a test of
economic “need” and (2) increase spending from its own funds above what the state spent in
FY1994 on cash, emergency assistance, and job training in TANF’s predecessor programs.
For purposes of the TANF contingency fund, a state meets the “economic need” test if
• its seasonally adjusted unemployment rate averaged over the most recent three-
month period is at least 6.5% and at least 10% higher than its rate in the
corresponding three-month period in either of the previous two years; or
• its Supplemental Nutrition Assistance Program (SNAP, formerly known as food
stamps) caseload over the most recent three-month period is at least 10% higher
than the adjusted caseload in the corresponding three-month period in FY1994 or
FY1995. For this purpose, FY1994 and FY1995 caseloads are adjusted by
subtracting out an estimate of participants who would have been made ineligible
for food stamps (as the program was then named) under the 1996 welfare law had
it been in effect in those years. The major group made ineligible was noncitizens.
Monthly payments from the contingency fund are limited to one-twelfth of 20% of a state’s basic
block grant, and states may receive these monthly payments on an advance basis. However, the
actual amount of contingency funds a state is entitled to for the year depends on (1) how much it
spends in advance contingency funds and state funds over the FY1994 threshold, (2) its Medicaid
matching rate, and (3) the number of months the state was eligible for contingency funds. A
state’s annual entitlement to contingency funds is calculated as the Medicaid matching rate times
the state’s extra spending (above FY1994 amounts) during the fiscal year, prorated by the number
of months the state was eligible for contingency funds during the fiscal year.7 A state that receives

6 P.L. 109-68, the TANF Emergency Response and Recovery Act of 2005, allowed states to draw upon the contingency
fund to aid families evacuated from states damaged by Hurricane Katrina. States received 100% federal funding for
families evacuated from a hurricane-damaged state to another host state. This was a temporary measure for the period
September 2005 through August 2006. See CRS Report RS22246, Temporary Assistance for Needy Families (TANF):
Its Role in Response to the Effects of Hurricane Katrina, by Gene Falk.
7 For example, if a state was eligible for contingency funds for three months in a fiscal year, its proration factor would
(continued...)
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more in monthly advances from the contingency fund than it is entitled to for the year must remit
overpayments to the federal treasury. A state may not receive more in contingency funds for the
year than the total of its monthly advance payments, under an annual cap on contingency funds of
20% of the state’s basic block grant.
The original $2 billion in this fund was depleted in early FY2010. The first FY2011 continuing
resolution (P.L. 111-242) that funded TANF at the outset of the fiscal year provided the
contingency fund a new $506 million appropriation for FY2011 and a $612 million appropriation
for FY2012. The full one-year extension of TANF (P.L. 111-291) curtailed FY2011 contingency
funds to those obligated before its date of enactment. Thus, there are no additional contingency
funds for the remainder of FY2011. The $612 million contingency fund appropriation for FY2012
remains in current law.
Additionally, during FY2009 and FY2010, states were able to draw additional TANF funds from
a temporary “emergency” contingency fund (see CRS Report R41078, The TANF Emergency
Contingency Fund, by Gene Falk.)
State Funds: the Maintenance-of-Effort, or MOE, Requirement
TANF consolidated and replaced programs that provided matching grants to the states. Under the
pre-TANF cash welfare program, federal funding was generally provided at the Medicaid
matching rate (between 50% and 83%) to reimburse states for a share of their expenditures in the
program.8 This meant that there were considerable state dollars contributing to the pre-TANF
programs. It also meant that the federal and state shares financing these programs varied by state,
as the Medicaid matching rate is higher in states with lower per-capita incomes than higher per-
capita incomes.
TANF requires states to maintain spending from their own funds on TANF or TANF-related
activities. States are required in the aggregate to maintain at least $10.4 billion in spending on
specified activities for needy families with children. The $10.4 billion, called the “maintenance-
of-effort” (MOE) level, represents 75% of what was spent from state funds in FY1994 in TANF’s
predecessor programs of cash, emergency assistance, job training, and welfare-related child care
spending.9 States are required to maintain their own spending of at least that level, and the MOE

(...continued)
be one-fourth (three-twelfth). If it was eligible for contingency funds for six months in a fiscal year, its proration factor
would be one-half (six-twelfth). A state eligible for contingency funds all year would not have its annual entitlement to
funds prorated (i.e., it would receive the full amount).
8 In the pre-1996 welfare law program, most administrative costs were reimbursed at a 50% rate (though some
expenditures on data systems were reimbursed at a 90% rate). TANF also consolidated funding from two other
programs: the Emergency Assistance program, which had a 50% matching rate, and the Job Opportunity and Basic
Skills (JOBS) training program, which used the Medicaid matching rate but had a 60% (not 50%) minimum match.
9 Some TANF MOE expenditures can also be counted toward meeting a separate child care “MOE” as part of the state
spending requirements for the Child Care and Development Block Grant (CCDBG) matching grants. The maximum
amount of funds that may be “double-counted” toward both the TANF and child care MOE requirements is $888
million, equal to the greater of FY1994 or FY1995 state expenditures in the pre-1996 child care programs. Analysis of
combined federal and state funding or expenditures under the TANF and child care block grants must recognize that
some state spending can be double-counted or it will overstate the amount of funding available or the amount of
spending from the two block grants. The minimum amount of TANF MOE funds that cannot be double-counted toward
CCDBG matching requirements is $9.5 billion.
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requirement increases to 80% of FY1994 spending for states that fail to meet TANF work
participation requirements (discussed below). State expenditures under this requirement are often
referred to as state MOE funds.
A state’s failure to meet the MOE requirement results in a penalty. The penalty is a reduction in a
state’s subsequent year’s block grant by $1 for each $1 shortfall from the required spending level.
Table 2 shows both federal TANF and state MOE funds. The MOE is shown at both the 75% and
80% rates for each state. Also shown is the percent of total federal and state funds in the TANF
financial “system” that is accounted for by federal funds. This percentage varies because the
Medicaid matching rate used in the pre-TANF programs varied by state. Mirroring the differences
in federal shares under the pre-1996 programs, federal funds account for a greater share of total
TANF funding in states with low per-capita income compared to those with higher per-capita
income.
Table 2. Federal TANF and State MOE Funding Levels
($ in thousands)
State Maintenance of Effort


(MOE) Funds


Total Federal
Federal Funds as a
and State Funds
Percent of Total
Federal
(at the 75%
Funds (MOE at the

Grants
75% Rate
80% Rate
rate)
75% rate)
Alabama
100,642 39,214 41,828 139,857
72.0
Alaska
68,159 48,942 52,205 117,101
58.2
Arizona 238,223
95,028
101,363
333,250
71.5
Arkansas
60,840 20,839 22,228 81,679
74.5
California
3,733,818 2,726,892 2,908,684 6,460,709
57.8
Colorado
145,020 82,871 88,396 227,890
63.6
Connecticut
266,788 183,421 195,649 450,209
59.3
Delaware
32,291 21,771 23,222 54,062
59.7
District
of
Columbia
92,610 70,449 75,146 163,059
56.8
Florida
602,239 370,919 395,647 973,158
61.9
Georgia
355,368 173,369 184,926 528,736
67.2
Hawai
98,905 72,981 77,847 171,886
57.5
Idaho
34,249 13,679 14,591 47,927
71.5
Illinois
585,057 430,088 458,761 1,015,145 57.6
Indiana
206,799 113,526 121,094 320,325
64.6
Iowa
131,525 61,963 66,094 193,488
68.0
Kansas
101,931 61,750 65,866 163,681
62.3
Kentucky
181,288 67,418 71,913 248,706
72.9
Louisiana
175,218 55,415 59,109 230,634
76.0
Maine
78,121 37,524 40,026 115,645
67.6
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State Maintenance of Effort


(MOE) Funds


Total Federal
Federal Funds as a
and State Funds
Percent of Total
Federal
(at the 75%
Funds (MOE at the

Grants
75% Rate
80% Rate
rate)
75% rate)
Maryland
229,098 176,965 188,763 406,063
56.4
Massachusetts
459,371 358,948 382,877 818,319
56.1
Michigan
775,353 468,518 499,753 1,243,871
62.3
Minnesota
267,985 179,745 191,728 447,730
59.9
Mississippi
92,736 21,724 23,173 114,460
81.0
Missouri
217,052 120,121 128,129 337,173
64.4
Montana
46,282 15,716 16,764 61,998
74.7
Nebraska
58,029 28,629 30,538 86,658
67.0
Nevada
46,443 25,489 27,188 71,932
64.6
New
Hampshire
38,521 32,115 34,256 70,636
54.5
New
Jersey
404,035 300,160 320,171 704,195
57.4
New
Mexico
130,432 37,346 39,836 167,778
77.7
New
York
2,442,931 1,718,578 1,833,150 4,161,509
58.7
North
Carolina
326,091 154,176 164,454 480,266
67.9
North
Dakota
26,400 9,069 9,674 35,469
74.4
Ohio
727,968 390,831 416,887 1,118,800
65.1
Oklahoma
148,014 61,250 65,334 209,264
70.7
Oregon
167,925 92,255 98,405 260,179
64.5
Pennsylvania
719,499 407,126 434,267 1,126,625
63.9
Rhode
Island
95,022 60,367 64,392 155,389
61.2
South
Carolina
99,968 35,927 38,322 135,895
73.6
South
Dakota
21,894 8,774 9,359 30,668
71.4
Tennessee
205,768 82,810 88,331 288,578
71.3
Texas
521,071 235,726 251,441 756,797
68.9
Utah
82,579 25,291 26,977 107,869
76.6
Vermont
47,353 25,550 27,253 72,903
65.0
Virginia
158,285 128,173 136,718 286,458
55.3
Washington
404,332 272,061 290,198 676,393
59.8
West
Virginia
110,176 32,294 34,446 142,470
77.3
Wisconsin
318,188 169,229 180,511 487,417
65.3
Wyoming
21,781 10,665 11,376 32,447
67.1
Totals
16,699,667 10,433,687 11,129,266 27,133,354
61.5
Source: Table prepared by CRS based on information from HHS.
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TANF Benefits, Services, and Activities
Congress decided that TANF was to be named a “block grant” program. In public finance lingo, a
block grant is a grant-in-aid given to states and local governments to address “broad purposes.”
Block grants also typically give governmental entities discretion in both defining problems and
expending funds to address them. In a general sense, TANF meets this definition of a block grant,
but its financing is complex (discussed above), and it does attach some “strings” to a state’s use of
TANF funds (discussed below).10
Using Federal TANF Grants
Federal TANF grants may be used for a wide range of benefits and services for families with
children. Grants may be used within a state TANF program or transferred to either the Child Care
and Development Fund (CCDF, the “child care block grant”) or the Social Services Block Grant
(SSBG). Unused TANF funds can also be reserved (saved), without fiscal year limit.11
Achieving TANF Goals
TANF allows states to expend funds “in any manner reasonably calculated” to achieve its
statutory purpose within its state TANF program. TANF’s purpose is to increase state flexibility to
meet specified goals. Its four statutory goals are to
1. provide assistance to needy families so that children can be cared for in their own
homes or in the homes of relatives;
2. end dependence of needy parents on government benefits through work, job
preparation, and marriage;
3. reduce the incidence of out-of-wedlock pregnancies; and
4. promote the formation and maintenance of two-parent families.
The four goals of TANF encompass what is usually thought of as traditional cash welfare
(assistance to families) and work activities for cash welfare families. However, the goals also
provide authority for states to use funds for a wide variety of benefits and services for welfare
families and other low-income families with children. States use TANF funds to help support
work for low-income families through providing child care or transportation aid. The authority to
provide assistance to care for children in the homes of relatives has been used by some states to
provide financial help for “kinship care” for children who have been, or are at risk of, neglect or
abuse and are placed in the care of a relative (e.g., grandparent, aunt, uncle). Further, TANF funds
have been used for programs and services aimed at accomplishing the “family formation” goals
of TANF (goals three and four listed above, and ending dependence through marriage, which is a
component of goal two).

10 For a general discussion of block grants, see CRS Report R40486, Block Grants: Perspectives and Controversies, by
Robert Jay Dilger and Eugene Boyd.
11 Before the enactment of the ARRA, reserved funds could only be used for the purpose of providing “assistance”
(often, cash welfare). The ARRA eliminated this restriction to the use of reserve funds, so that reserve funds can be
used to provide any allowed TANF benefit or service.
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“Grandfathered” Activities
In addition to using funds to promote the purpose and goals of TANF, federal law allows states to
use TANF funds to carry out any program or activity that a state had conducted under its pre-1996
programs. This provision permits states to continue activities they undertook under the pre-1996
Emergency Assistance (EA) program to provide help for foster care, adoption assistance,12 and
juvenile justice programs.
Transfers to Other Block Grants
Federal law allows up to 30% of federal TANF grants (except contingency funds) to be
transferred to the CCDF and SSBG combined, with a separate limit of 10% of TANF grants
(except contingency funds) that may be transferred to SSBG.13 Funds transferred to these other
block grants become subject to the rules of the receiving block grant (CCDBG or SSBG), and are
not subject to TANF rules. However, TANF funds transferred to SSBG must be used for families
with incomes below 200% of the poverty line.
Matching for Reverse Commuter Grants
Federal law also allows states to use federal TANF funds as a state match for reverse commuter
grants. If a state makes use of federal TANF funds for this purpose, it is counted against the 30%
limit for transfers to CCDBG and SSBG; that is, it reduces the amount of federal TANF funds
that could be transferred to those other block grants.
Using State MOE Funds
Most, but not all, benefits, services, and activities that may be funded from federal TANF funds
may also be financed by state MOE funds. States may count toward the MOE expenditures for
any program that provides cash assistance, administration, child care, education, and training
(though not educational activities for the general population), and other activities to further a
TANF purpose. The major restrictions that apply to MOE (but not federal TANF) funds are
• for benefits, services, and activities that were not a part of the pre-1996 welfare
law programs, expenditures count only to the extent that they exceed the FY1995
level of expenditure in the program; and

12 These would be foster care and adoption assistance cases that are ineligible for other federal financing from programs
under Title IV-E of the Social Security Act.
13 The original welfare reform law (P.L. 104-193) set the limit on transfers from TANF to SSBG at 10% of the TANF
block grant. P.L. 105-178 (Transportation Equity Act for the 21st Century) reduced funding for SSBG and the transfer
authority from TANF to SSBG to 4.25%, effective FY2001. However, annual appropriation bills through FY2005
provided for a 10% transfer limit. The Deficit Reduction Act of 2005 (DRA, P.L. 109-171) permanently reinstated the
10% transfer limit. DRA extended the funding for TANF through FY2010 on the terms in effect in FY2004. Because
the FY2004 appropriation bill set the TANF transfer limit to SSBG at 10% for that fiscal year, the transfer limit to
SSBG through FY2010 will be 10%. This is despite the fact that the Social Security Act provision for TANF transfers
to SSBG continues to set the limit at 4.25%.
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• expenditures on activities that were part of the pre-1996 welfare law programs
that are not aimed to achieve a TANF goal (“grandfathered” activities) are not
countable toward the MOE.
Table 3 provides a brief summary of the types of benefits, services, and activities that may be
funded by federal TANF funds and with state MOE funds.14
Table 3. Summary of Rules for the Use of Federal TANF and State MOE Funds
May States Use Funds for ...

Federal TANF Funds

MOE Funds
Cash welfare, administration of
Yes
Yes
cash welfare, and work
programs?
Child care?
Yes, either through
Yes. States may not count child care funds
transfer to the Child Care
spent for the state match for CCDBG
and Development Fund,
matching funds, but may count up to $888
up to 30% of the grant, or
million spent toward the CCDBG MOE and
within TANF.
any additional child care spending.
Activities to help achieve TANF
Yes
Yes, though under regulations many of these
family formation goals?
expenditures are limited to families that meet
a need-test. Only expenditures on activities
that seek to promote healthy marriage or
responsible fatherhood may be available to
the general population without a need-test.
Other benefits and services to
Yes
If activity was not authorized in pre-1996
help achieve TANF goals?
programs, expenditures in ongoing programs
only count if above FY1995 levels.
Activities in the pre-1996
Yes
No
welfare programs that are not
reasonably calculated to help
achieve TANF goals
(“Grandfathered” activities)?
Source: Table prepared by CRS.
Requirements for States
As discussed above, TANF provides states with broad authority to spend federal and MOE funds
on a wide range of benefits and services. Though TANF is a block grant, there are some strings
attached to states’ use of funds, particularly for families receiving “assistance” (essentially cash
welfare). As discussed below, TANF funds used for benefits and services that are not considered
assistance are generally free of most requirements.

14 Prior to the enactment of the Deficit Reduction Act of 2005 (DRA, P.L. 109-171) MOE funds used to achieve
TANF’s family formation goals were restricted to expenditures on “needy” families with children. The DRA had a
provision that allows a state’s total expenditure on activities to achieve these goals to be counted without regard to a
family’s need. However, HHS regulations issued on February 5, 2008, limit MOE expenditures related to the family
formation goals except for activities related to promoting healthy marriage and responsible fatherhood. (See Appendix,
“Families Considered “Engaged in Work” (the Numerator of the Participation Rate)” later in this report for a listing of
these activities. For a discussion of this regulatory provision, see Federal Register, vol. 73, no. 24, p. 6517-6318.
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Rules When Funds Are Used to Provide Assistance
Federal law specified that most TANF requirements apply only with respect to families receiving
assistance. Further, different TANF requirements apply to families receiving assistance within
“the state TANF program” versus in “separate state programs.” Separate state programs are state-
funded programs with expenditures counted toward the TANF MOE, but the state has made a
decision to consider as distinct from “the state TANF program.”
Definition of Assistance
Federal TANF law does not define “assistance.” However, the Department of Health and Human
Services (HHS) defines assistance in regulation as payment to families to meet “ongoing basic
needs” such as food, clothing, shelter, utilities, household goods, personal care items, and other
personal expenses.15 Generally, such payments correspond to what most call cash welfare.
Further, the regulations define TANF assistance to include child care and transportation aid for
nonworking persons. Child care and transportation for working parents are explicitly excluded
from the definition of assistance.
TANF Program and Separate State Programs
As discussed above, states may count their expenditures in any program toward meeting the
MOE requirement. Programs other than TANF that contribute toward the MOE are known as
“separate state programs.” Table 4 summarizes the application of TANF requirements for
assistance recipients based on whether a benefit was financed from federal funds, state funds
within the “TANF program,” or separate state programs. TANF requirements apply when
assistance is financed via federal TANF grants. Before FY2007, the major distinction in the rules
for using state MOE funds under TANF and separate state programs was that the TANF work
participation standards and child support requirements did not apply to families in separate state
programs. Beginning in FY2007, work participation standards do apply to families in a separate
state program. This leaves the major distinction that child support requirements do not apply to
states for families in separate state programs.
Table 4. Summary of TANF Requirements that Apply
to Recipients of Assistance, by Funding Source of the Benefit
Federal
State Funds Expended in
Separate State
TANF Requirement
TANF Funds
the “TANF Program”
Programs
Work participation rate requirements
Yes
Yes
Beginning in
FY2007, yes
Time limit
Yes
No
No
Prohibition for noncitizens during the
Yes No No
first five years in the country
Assignment of child support to the state
Yes
Yes
No
Source: Table prepared by CRS.

15 The regulatory definition of assistance is found at 45 C.F.R. § 260.31.
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Federal Eligibility Rules for Assistance
TANF requires that a family have a dependent child to be eligible for assistance, including
ongoing cash welfare. That is, childless individuals and couples are not eligible for TANF
assistance. Additionally, a family receiving assistance must be needy—that is, having income
below a specified level, though the level is determined by the state.
Federal law also prohibits states from using federal TANF funds to aid the following persons and
families:
• families with an adult who has received federally funded aid for 60 months (see
“The TANF Time Limit,” discussed later in this report);
• unwed teen parents, unless living in an adult-supervised setting;
• teens who have not completed high school, unless they are making satisfactory
progress toward achieving a high school or equivalent credential;
• noncitizens who arrived in the United States after August 22, 1996, for the first
five years after arrival;16
• fugitive felons and parole violators; and
• persons convicted of a drug-related felony, unless the state affirmatively opts out
of this provision.17
States that misuse federal TANF funds and aid such persons or families are penalized through a
reduction in their block grant. However, states may provide assistance to these persons and
families using MOE funds.
Aside from the requirement that TANF assistance be restricted to needy families with children
and the listed statutory prohibitions on the use of federal funds, states have broad leeway to
define eligibility for TANF cash assistance. States determine actual income eligibility standards
(to determine whether a family is needy) and can determine other conditions and criteria for
eligibility. States also determine benefit amounts paid to families.
TANF Work Participation Standards
TANF sets minimum work participation standards that a state must meet. The standards are
performance measures computed in the aggregate for each state, which require that a specified
percentage of families be considered engaged in specified activities for a minimum number of
hours.
A state that fails to meet TANF work participation standards is penalized by a reduction in its
block grant. The penalty is a 5% reduction in the block grant for the first year’s failure to meet the
standard, and increased by 2 percentage points each year (that is, a total reduction of 7% in the
second year and 9% in the third year, etc.), up to a maximum penalty of 21%. However, the law

16 This prohibition is not found in TANF law itself, but was enacted in Title IV of the 1996 welfare law (P.L. 104-193),
which generally set rules for noncitizens’ access to publicly funded benefits.
17 This prohibition is also not in TANF law itself, but was enacted in Section 115 of the 1996 welfare law (P.L. 104-
193), and applies to both TANF and Food Stamps.
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requires that this penalty be based “on the degree of noncompliance”; hence, actual penalties may
be lower than the amounts set in statute. Further, penalties may be reduced if a state is in
recession (based on the contingency fund’s indicators of an economically needy state; see
“Contingency Funds,” earlier in this report) or if the noncompliance was due to “extraordinary
circumstances, such as a natural disaster or regional recession.” Additionally, penalty relief is
granted to a state that has failed to comply with participation standards because of waivers of
program requirements provided to victims of domestic violence (see “Special Provisions for
Victims of Domestic Violence,” later in this report).
Numerical Participation Standards
To comply with TANF requirements, a state must meet two standards each year—the “all family”
and the “two-parent” family participation standards. The standards are that (1) 50% of all families
and (2) 90% of two-parent families must meet participation standards.
Caseload Reduction Credits
The above-mentioned TANF work participation standards are reduced by a caseload reduction
credit. The caseload reduction credit reduces the 50% and 90% standards for a state by one
percentage point for each percent decline in the cash assistance caseload from FY2005 levels.18
States are not given a credit for caseload reduction attributable to more restrictive policy changes
made since FY2005.
State Participation Rates
To determine compliance with TANF federal work standards, a state’s effective participation
standard (i.e., its numerical standard minus its caseload reduction credit) is compared against its
TANF work participation rate. The TANF work participation rate represents the percent of non-
excluded families receiving assistance who participate in creditable activities for the requisite
number of hours.
Most families with an adult recipient receiving assistance are included in the participation rate
calculation—that is, in the denominator of the participation rate—but certain families are
excluded. A family is considered “engaged in work”—and counted in the numerator of the
participation rate—if a member is participating in creditable activities for a minimum number of
hours. Federal law lists 12 categories of activities that count toward meeting the participation
standards, with regulations defining which specific activities count in each of the categories.
Federal law also sets the minimum number of hours of participation required for a family to be
considered “engaged in work.” For a detailed discussion of the calculation of participation rates
for the purpose of determining whether states have met TANF work participation standards, see
Appendix.

18 Before FY2007, a state was given a caseload reduction credit of 1 percentage point for each percent decline in the
TANF caseload that occurred from its FY1995 (pre-welfare reform) level.
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Verifying Work Participation
States are required to have procedures to verify recipients’ work participation: identifying who is
subject to or excluded from work standards; how a recipient’s activities represent countable
TANF work activities; and how to count and verify reported hours of work. HHS regulations
require that descriptions of these procedures be included in a state work verification plan. States
that fail to comply with these work verification requirements are subject to a penalty of between
1% and 5% of the state’s block grant. Additionally, the HHS regulations also include
requirements that activities be “supervised,” many on a daily basis.
Other Work-Related Requirements that Apply to Recipients of Assistance
In addition to the TANF work participation standards (aggregate performance measures), there
are three work-related requirements that apply to each adult or teen parent recipient: assessment,
sanction for refusal to comply with work requirements, and a requirement that all parents and
caretakers be engaged in work within 24 months.
Employability Assessment
States are required to assess each adult recipient’s or teen parent’s skills, work experience, and
employability. The assessment is required to be made within 90 days of determination of the
recipient’s eligibility for assistance. States may use this assessment to develop an Individual
Responsibility Plan (IRP) that sets forth employment goals and obligations of the recipient and
describes the services the state will provide the individual. The IRP is an option to the states; it is
not required by federal law. States may sanction families for failure to comply with IRPs.
Sanctions for Failure to Comply with Work Requirements
States are required to sanction a family with a member who refuses to comply with its work
requirements without “good cause.” States are free to determine the sanction amount, and
whether to reduce benefits or terminate benefits for families that fail to comply with work
requirements (a full-family sanction). States also determine what constitutes “good cause” for not
complying with work requirements.
States are prohibited from sanctioning a family with a single parent with a child under the age of
six if he or she refuses to comply with work requirements because she cannot find affordable
child care. The parent must demonstrate to a state that the inability to find affordable child care is
because (1) appropriate child care within a reasonable distance from the parent’s work or home is
unavailable; (2) informal child care by a relative or other arrangement is unavailable or
unsuitable; and (3) appropriate and affordable child care is otherwise unavailable.
Work Within Two Years
States are required to engage each parent or caretaker adult in “work,” as defined by the state,
within 24 months of his or her coming on the rolls. For this requirement, the state is free to
determine what constitutes being engaged in work; it need not follow the federal rules for the
activities and hours that determine whether the family is counted as a participant toward the work
participation performance standard. This requirement is a part of the TANF state plan, and there is
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no specific penalty for a state that fails to engage a parent or caretaker in work by the 24-month
deadline.
The TANF Time Limit
States may not use federal TANF funds to provide assistance to a family containing an adult who
has received five years (60 months) of assistance. The federal five-year time limit is a prohibition
on states’ use of federal TANF funds, not a direct limitation on how long a particular family may
receive welfare. How time limits affect families is determined by states, which have wide latitude
in implementing them.
Federal law provides a hardship exception to the time limit, allowing federal funds to be used in
cases of hardship for up to 20% of the caseload beyond the five-year limit. Further, federal law
explicitly allows a state to use state MOE funds to aid a family beyond the time limit.
TANF penalizes states that have more than 20% of their caseload on the rolls for more than five
years. The penalty is a 5% reduction in the block grant. However, it is unlikely that a state will
breach the 20% limit of families because of its ability to assist families beyond five years with
state MOE funds.
Many states have adopted the five-year limit as their own; others have shorter time limits. Some
states effectively do not limit the amount of time a family may receive assistance (using state
funds or the 20% hardship exception). The time limit does not apply to families without an adult
recipient, known as “child-only” cases.
Child Support Enforcement Requirements
The majority of families receiving cash assistance are in families headed by a single mother. In
most of these families, there is a noncustodial parent who is also likely to be financially
responsible for the children’s economic well-being.
Families receiving TANF assistance must cooperate with certain child support enforcement
requirements. They must cooperate with the state in establishing the paternity of a child and in
establishing, modifying, or enforcing orders that the noncustodial parent pay child support.
Federal law requires states to penalize families who do not cooperate with child support
enforcement requirements by cutting their benefits at least 25%. States could penalize families by
more, and even end assistance for failure to cooperate with child support enforcement
requirements.
Families receiving TANF assistance must assign (legally turn over) any child support they receive
from noncustodial parents to their state as a reimbursement for welfare costs. The federal
government and the states split the receipts from assigned child support. A state has the option of
passing through assigned child support to TANF families, but until October 1, 2008, must pay for
it (e.g., from the state’s share of assigned child support). Beginning on October 1, 2008, the
federal government will share in the cost of passing through child support paid to TANF families
as long as the child support is also disregarded in determining TANF eligibility and benefit
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amounts.19 State expenditures from the pass-through of child support, if disregarded in
determining a welfare family’s benefit, are countable toward the TANF MOE.
Special Provisions for Victims of Domestic Violence
Federal law provides for an optional certification that a state has procedures in place to screen for
and identify victims of domestic violence, refer such victims to supportive services, and waive
certain program requirements. The program requirements that may be waived include work
requirements, the time limit, and cooperation with child support enforcement rules.
Though the state may waive certain program requirements for victims of domestic violence,
federal law does not exclude them from the TANF work participation rate standard calculation or
from the 20% limit on hardship cases that exceed the five-year time limit. However, HHS
regulations allow a state to provide victims of domestic violence a federally recognized good
cause domestic violence waiver, and provides that a state would have “good cause” for failing the
requirements if that failure was due to providing such waivers.20
A federally recognized domestic violence waiver must identify program requirements that are
being waived; be granted based on an individualized assessment; and be accompanied by a
services plan. These waivers must be reassessed at least every six months.
Rules When TANF or MOE Funds Are Used for Benefits and
Services Other Than “Assistance”
As previously discussed, most TANF federal requirements relate to “assistance.” However, TANF
gives states permission to spend federal funds and count state spending toward the MOE on a
wide range of benefits and services other than assistance. Essentially, TANF and MOE funds may
be spent on benefits, services, or activities aimed to achieve any of the goals of TANF. Examples
of such benefits and services include short-term, non-recurring aid21, child care for families with
working members, transportation aid for families with working members, refundable tax credits
for working families with children,22 funding of Individual Development Accounts (IDAs),
education and training for low-income parents, and activities that seek to achieve the family
formation goals (goals three and four) of TANF. Such benefits and services may be provided to
families receiving assistance, but also might be provided to other families who have no
connection to the cash welfare rolls.

19 The amount of the pass-through that the federal government will share the cost of is limited to $100 for a family with
one child and $200 for families with two or more children. This is a provision of the Deficit Reduction Act of 2005.
See CRS Report RS22377, Child Support Provisions in the Deficit Reduction Act of 2005 (P.L. 109-171), by Carmen
Solomon-Fears.
20 See regulations at 45 C.F.R. §§ 260.50-260.59.
21 Non-recurrent short-term aid is defined in regulations as benefits that (1) are designed to deal with a specific crisis
situation or episode of need; (2) are not intended to meet recurrent or ongoing needs; and (3) will not extend beyond
four months.
22 HHS regulations provide that refundable state earned income tax credits are not considered assistance. It should be
noted that only the “refundable” portion of a state tax credit may be financed through either federal TANF or MOE
funds. That is, the portion of the tax credit that exceeds a family’s state tax liability and requires a payment
(expenditure) from the state treasury may be financed via TANF. Tax credits that reduce a family’s tax liability are not
allowable uses of federal TANF funds nor are they countable toward the MOE.
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State Accountability
Federal law gives states broad flexibility in designing and implementing state programs operated
with TANF and MOE funds. It also requires states to develop plans that outline their intended use
of funds and report data on families receiving assistance.
TANF State Plans
States are required to submit state plans every three years as a condition of receiving TANF block
grant funds. The bulk of these plans are an “outline” of the program the state “intends” to operate.
The Secretary of HHS cannot disapprove a state plan based on its content. Rather, the role of the
Secretary is to determine whether the state has included information on all required elements of
the plan. State plans have no set format, and vary greatly in their content and detail.
State plans are not required to have—and often do not have—information on basic financial and
nonfinancial eligibility rules for TANF assistance. For example, a state is not required to provide
information on income eligibility rules, treatment of earnings, or information on its time limit in
the state plan. Some eligibility information is collected for programs funded with MOE dollars in
annual program reports, but it is not of the detail necessary to describe, for example, the
maximum amount of earnings a family may have and still remain eligible for TANF assistance.
Data Reporting
TANF law and regulations require states to provide information on families receiving assistance.
States must provide both caseload counts and family- and recipient-level information on families
receiving assistance. Family- and individual-level information that states must report includes
basic demographic information, the work activities hours of adults, and the financial
circumstances of families and individual recipients receiving assistance. Neither caseload counts
nor characteristic information is required to be reported for families receiving TANF-funded
benefits and services that are not considered assistance.
In addition to regular data reporting, P.L. 111-291 required two special data reports from states in
2011. The reports are to provide additional information on self-sufficiency activities of adults in
TANF families, particularly an accounting of activities not countable toward the TANF work
participation standards. They are also required to provide additional detail on how states spend
federal TANF and MOE funds. The first of the two reports is a “snapshot” of program activity in
March 2011. The second report will provide data for the fiscal quarter of April 2011 to June 2011.
Other TANF Provisions
Healthy Marriage and Responsible Fatherhood
The Deficit Reduction Act of 2005 created new TANF funding for healthy marriage promotion,
Indian child welfare, and responsible fatherhood initiatives. An appropriation of $150 million per
year is provided for each of five years (FY2006 through FY2010) for the following initiatives:
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• up to $50 million per year may be used to fund “Responsible Fatherhood
Initiatives” (see below);
• up to $2 million per year may be used to fund demonstration projects to test the
effectiveness of Indian tribal governments in coordinating child welfare services
to children at risk of abuse and neglect; and
• the remainder (a minimum of $98 million per year) is for demonstration projects
and technical assistance on “Healthy Marriage Promotion Initiatives” (see
below).
P.L. 111-291 extended healthy marriage and responsible fatherhood funding through FY2011.
However, it altered the split in funding between these two categories of activities. For FY2011,
$75 million is allocated for healthy marriage initiatives and $75 million is allocated for
responsible fatherhood initiatives. Any funds for tribal government child welfare coordination
demonstrations would equally reduce the $75 million allocated to healthy marriage and
responsible fatherhood initiatives.
Healthy Marriage Promotion Initiatives
The healthy marriage promotion initiative funds (1) awards by HHS to public or private entities
to conduct research and demonstration projects; and (2) technical assistance to states, Indian
tribes and tribal organizations, and other entities. The activities supported by these initiatives
include
• programs to promote marriage in the general population, such as public
advertising campaigns on the value of marriage and education in high schools on
the value of marriage;
• education in “social skills” (e.g., marriage education, marriage skills, conflict
resolution, and relationship skills); and
• programs that reduce the financial disincentives to marry, if combined with
educational or other marriage promotion activities.
Applicants for marriage promotion grants must ensure that participation in such activities is
voluntary and that domestic violence concerns are addressed (e.g., through consultations with
experts on domestic violence).
Responsible Fatherhood Initiatives
Allowable activities under responsible fatherhood initiatives include those to promote marriage;
teach parenting skills through counseling; mentoring, mediation, and dissemination of
information; employment and job training services; media campaigns; and development of a
national clearinghouse focused on responsible fatherhood.
Tribal TANF
Federally recognized Indian tribes and certain Alaskan Native organizations have the option to
operate their own TANF programs for needy families with children. Tribes are entitled to receive
a grant equal to the amount of FY1994 federal expenditures in pre-TANF programs attributable to
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Indian families residing in the area to be served by the tribal program. This is financed by a
reduction in the state’s block grant amount. States may, but are not required to, provide tribes with
MOE funds.
Tribes seeking to operate TANF programs must submit plans to the Secretary of HHS for
approval. The Secretary of HHS—with the participation of the tribes—establishes work
requirements and time limits for each tribe operating its own TANF program.
Additionally, tribes that operated pre-TANF work and education programs are provided grants to
operate tribal work programs that total $7.6 million per year. The amount of each grant equals
what the tribe received in FY1994 under pre-TANF programs.
Research and Demonstration Funds
TANF law appropriates $15 million per year for research and evaluation activities for state TANF
programs. (Before FY2002, these funds were annually rescinded in appropriations acts, with
welfare-related research funded through another HHS research and evaluation account.) Half of
these funds must be used for state-initiated research projects; the remainder is to be used for
federally initiated projects.
Census Bureau Funds
TANF law also appropriates $10 million per year to the U.S. Census Bureau to fund a
longitudinal survey of a representative sample of households to examine the effects of welfare
reform. This survey is known as the Survey of Program Dynamics, and includes information on
the sample for a 10-year period spanning 1992-2003.
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Appendix. Details of TANF Work Participation
Rate Calculations
Introduction
TANF work participation standards are numerical performance measures that each state must
meet or be subject to a financial penalty (a reduction in a state’s block grant). The standards
themselves set a target participation rate for a state to meet. The participation rate itself is
expressed as a percentage: the number of families considered engaged in work (the numerator) is
divided by the total number of families included in the participation calculation (the
denominator). The percent of families meeting participation requirements is computed monthly,
and for the fiscal year, the annual participation rate is the average of the participation rates for
each month over the year.
This Appendix provides the details of the TANF work participation rate calculation. It first
describes the total number of families included in the work participation calculation, and then
discusses the rules for a family to be considered “engaged in work.”
Families Included in the Participation Rate Calculation (the
Denominator of the Participation Rate)
Most families receiving assistance from federal TANF or state MOE funds are included in the
participation rate calculation. However, certain families are excluded either by statute or
regulation. Such families may be exempted from TANF work requirements without creating the
potential that their nonparticipation would result in a lower participation rate.
The families excluded from the participation rate are
• certain families without an adult recipient. This category includes families with
adult nonrecipients who are (a) non-parent caretakers (e.g., grandparent, aunt,
uncle), (b) ineligible noncitizen parents, (c) and, at state option, adults receiving
Supplemental Security Income (SSI);23
• at state option, families with a single parent caring for a child under the age of
one—this exclusion is limited to a maximum of 12 months in a lifetime for the
family;
• families with adults who are needed in the home to care for disabled family
members;

23 Before October 1, 2006, all families without an adult recipient were excluded from the work participation rate
calculation. The Deficit Reduction Act of 2005 (P.L. 109-171) required HHS to issue regulations to determine the
circumstances under which a family with a non-recipient parent must be included in the work participation rate
calculation. The HHS regulations generally require that states include the following types of families without an adult
recipient in the work participation rate calculation: (1) except for three months in a 12-month period, families subject to
a sanction that removes the adult from the TANF assistance unit; and (2) families that reach state time limits that
remove the adult from the TANF assistance unit but continue aid on behalf of the family’s children.
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• at state option, families with adult Social Security Disability (SSDI) recipients;
• at state option, families with an adult that became eligible for SSI during the
fiscal year;
• at state option, families participating in a tribal TANF or tribal work program;
and
• families under a sanction for refusal to comply with work requirements, for up to
three months in a 12-month period.
Families Considered “Engaged in Work” (the Numerator of the
Participation Rate)
For a family to be considered “engaged in work” it must have members who participate in
creditable activities for at least a minimum number of hours. The rules emphasize that recipients
get a job quickly; education and training are limited.
Creditable Activities
Federal law lists 12 categories of activities creditable toward meeting TANF work participation
standards. HHS regulations define what specific types of activities count under each of the 12
categories. Table A-1 lists the 12 creditable categories of activities and the HHS regulatory
definition for each.
Table A-1. Creditable TANF Work Activities and Their Definitions
Activity
Definition
Unsubsidized employment
Means full- or part-time employment in the public or private sector that is not
subsidized by TANF or any other public program.
Subsidized private sector

Means employment in the private sector for which the employer receives a
employment
subsidy from TANF or other public funds to offset some or al of the wages and
costs of employing an individual.
Subsidized public sector

Means employment in the public sector for which the employer receives a
employment
subsidy from TANF or other public funds to offset some or al of the wages and
costs of employing an individual.
Job search and readiness

Means the act of seeking or obtaining employment, or preparation to seek or
obtain employment, including life skills training and substance abuse treatment,
Participation in this activity
mental health treatment, or rehabilitation activities. Such treatment or therapy
may be counted for six weeks
must be determined to be necessary and documented by a qualified medical,
(12 weeks in certain
substance abuse, or mental health professional.
circumstances) in a fiscal year.
Community service

Means structured programs and embedded activities in which TANF recipients
perform work for the direct benefit of the community under the auspices of
public or nonprofit organizations. Community service programs must be limited
to projects that serve a useful community purpose in fields such as health, social
service, environmental protection, education, urban and rural redevelopment,
welfare, recreation, public facilities, public safety, and child care. A state agency
shal take into account, to the extent possible, the prior training, experience, and
skills of an individual in making appropriate community service assignments.
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Activity
Definition
Work experience

Means a work activity, performed in return for welfare, that provides an
individual with an opportunity to acquire the general skills, knowledge, and work
habits necessary to obtain employment. The purpose of work experience is to
improve the employability of an individual who cannot find unsubsidized full-time
employment.
On-the-job training

Means training in the public or private sector that is given to a paid employee
while he or she is engaged in productive work and that provides knowledge and
skills essential to the full and adequate performance of the job.
Vocational educational

Means organized educational programs that are directly related to the
training
preparation of individuals for employment in current or emerging occupations.
Participation in this activity
is limited to 12 months in a
lifetime.
Caring for a child of a

Means providing child care to enable another cash welfare recipient to participate
recipient in community
in a community services program. This is an unpaid activity and must be a
service
structured program to improve the employability of participating individuals.
Job skills training directly

Means training or education for job skills required by an employer to provide an
related to employment
individual with the ability to obtain employment or to advance or adapt to the
changing demands of the workplace.
Education directly related

Means education related to a specific occupation, job, or job offer.
to employment (for those
without a high school or
equivalent degree
Completion of a

In the case of a recipient who has not completed secondary school or received
secondary school program
such a certificate, this means regular attendance, in accordance with the
(for those without a high
requirements of a secondary school or course of study, at a secondary school or
school or equivalent
in a course of study leading to a certificate of general equivalence.
degree)
Source: Table prepared by CRS based on HHS regulations. See Federal Register, vol. 73, no. 24, February 5,
2008, pp. 6772-6828.
Minimum Required Hours in Work or Job Preparation Activities
To be considered a “participant” and counted by a state toward meeting its standard, a family
member or members must also be engaged in these activities for a minimum number of hours per
week in a month. Table A-2 outlines the TANF work participation hours standards. For meeting
the “all family” standard, the hours requirement varies depending on family type and the age of
the youngest child. The general hours requirement is an average of at least 30 hours per week
during the month. However, for single parents caring for a child under the age of six (about half
the caseload of families with an adult recipient), an average of 20 hours per week during the
month is needed in work activities for a state to deem them as participants. Higher hours are
required for two-parent families to meet the standard. In two-parent families, the combined hours
of both parents are considered in determining whether a family can be considered a participant
family.
Table A-2 shows that certain hours of participation must be in “core” activities, while remaining
hours may be in “supplemental” activities. The concepts of core and supplemental activities are
discussed below.
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Table A-2. TANF Hours Requirements for the All-Family Rate and the Two-Parent
Family Rate (Excludes Special Rule for Teen Parents), by Family Type

All-Family Rate
Two-Parent Family Rate
Two-Parent
Two-Parent
Single-Parent
Families Receiving
Families not
Families with a
Federally Funded
Receiving Federally
Child Under Age 6
Other Families
Child Care
Funded Child Care
Total hours
An average of 20
An average of 30
An average of 55
An average of 35 hours
requirement
hours per week during hours per week
hours per week
per week during the
the month
during the month during the month
month
Required hours
An average of 20
An average of 20
An average of 50
An average of 30 hours
in core activities
hours per week during hours per week
hours per week
per week during the
the month
during the month during the month
month
Allowable hours
Not applicable
Up to an average
Up to an average of 5
Up to an average of 5
in supplemental
of 10 hours per
hours per week
hours per week during
activities
week during the
during the month
the month
month
Source: Table prepared by CRS.
Table A-3 lists the 12 activities, classifying them as either “core” or “supplemental.” In general,
participation in a core activity may be a recipient’s sole or primary activity used to fully satisfy
TANF participation requirements. On the other hand, participation in supplemental activities
often must be done only in conjunction with participation in core activities, with hours that count
only after the core requirement is met.
Most of the core activities focus on work or activities designed to move a family quickly into
work. The notable exception is vocational educational training, which is creditable for 12 months
in an individual’s lifetime as a sole or primary TANF activity. All supplemental activities are
education-related.
Table A-3. TANF “Core” and “Supplemental” Work Activities
“Core” activities
—Unsubsidized employment;
—Subsidized private sector employment;
—Subsidized public sector employment;
—Job search and readiness (usual limit of six weeks in a fiscal year.
This limit is converted to an “hourly equivalent” basis, see below)a;
—Community service;
—Work experience;
—On-the-job training;
—Vocational educational training (limited to 12 months in an individual’s lifetime); and
—Caring for a child of a recipient in community service.
“Supplemental”
—Job skills training directly related to employment;
activities
—Education directly related to employment (for those without a high school or
equivalent degree); and
—Completion of a secondary school program (for those without a high school or
equivalent degree).
Source: Table prepared by CRS.
a. The limit on job search and readiness is increased to 12 weeks for a state that has an unemployment rate at
least 50% above the national average unemployment rate or meets the “economic need” criteria for
contingency funds (see “Contingency Funds,” earlier in this report).
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HHS regulations clarify that only actual hours of participation count toward meeting these
standards. However, they also created an excused absence policy. For paid activities, states are
credited for all hours for which an individual is paid, including any holidays or paid leave (e.g.,
paid sick leave). For unpaid activities, the regulations allow for up to 10 holidays plus 80 hours of
other excused absences over a year.
The regulations require that hours in unpaid activities be supervised on a daily basis. The daily
supervision requirement means that a responsible party has daily oversight of an individual’s
participation, not necessarily daily in-person contact with the participant.
Limit on Job Search and Readiness
HHS regulations also provide that the six- (or sometimes 12-) week limit on participation in job
search and readiness be expressed in terms of hours over a calendar year. For a single parent
caring for a pre-school child with a minimum 20 hours per week participation requirement, the 6-
week limit on job search and readiness is converted to a 120-hour per year limit. For others, the
limit is converted to 180 hours per year.
Under the statute, the six-week limit on job search and readiness is increased to 12 weeks, on the
basis of conditions in the state (rather than the characteristics of the individual). The limit rises if
the state’s unemployment rate is at least 50% greater than the national average unemployment
rate or the state is considered an economically “needy” state for the purposes of the TANF
contingency fund (see the “Contingency Fund” section earlier in this report). Those in states that
meet either of these criteria may exceed the usual limits, up to 240 hours per year for single
parents families with a pre-school child or 360 hours per year for others.
Teen Parents
Teen parents have a special rule for determining their participation. A state may deem a teen
parent as engaged in work if she or he is participating in education directly related to employment
for an average of at least 20 hours per week during the month or is making satisfactory progress
toward completion of a secondary school program.
Limitation on Participation in Education
There is a cap on participation in education activities. A maximum of 30% of families considered
participating may be participating by virtue of vocational educational training or by being a teen
parent deemed to be participating through education directly related to employment or
satisfactory progress in a program of secondary school education.
Deeming Hours of Participation in Workfare
Participation in work experience or community service is sometimes called “workfare” because
recipients are effectively working off their welfare grant. Guidance issued by the U.S.
Department of Labor in May 1997 directed that states must comply with minimum wage rules for
participants of work experience or community service if a specific activity comes under the Fair
Labor Standards Act’s (FLSA) definition of employment.
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For activities covered by minimum wage rules, the maximum number of hours of participation
allowed would be the grant divided by the minimum wage. In some cases, this could result in
fewer hours than required to meet TANF participation standards. States determine TANF benefit
amounts, which also often vary by family size. Moreover, most states reduce TANF benefits for
other income (e.g., Social Security and unemployment insurance). The reduced benefit may be
smaller than needed to comply with both minimum wage requirements and TANF participation
standards.
The HHS regulations issued on February 5, 2008, provide that a workfare recipient may be
deemed to meet the core TANF work participation hours standard if the state has a Simplified
Supplemental Nutrition Assistance Program (SNAP) that aligns SNAP and TANF work rules and
if the maximum number of workfare hours based on both TANF and SNAP benefits is still below
that required to comply with TANF work participation standards.

Author Contact Information

Gene Falk

Specialist in Social Policy
gfalk@crs.loc.gov, 7-7344


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