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Updated December 5, 2019
Social Services Block Grant
Introduction
Table 1. SSBG Funding History
The Social Services Block Grant (SSBG) is a flexible
(nominal $ in billions)
funding stream used by states and territories to support a
wide variety of social services. At the federal level, the
SSBG
TANF
SSBG is administered by the U.S. Department of Health
Fiscal Year
Ceiling
Appropriation
Transfer
and Human Services (HHS).
2010
$1.700
$1.700
$1.220
Authorization
2011
$1.700
$1.700
$1.135
Social services for certain welfare recipients have been
authorized under various titles of the Social Security Act
2012
$1.700
$1.700
$1.133
since 1956. The SSBG, in its current form, was created in
2013
$1.700
$1.613 + $0.475
$1.135
1981 (P.L. 97-35). The SSBG is permanently authorized by
Title XX, Subtitle A, of the Social Security Act.
2014
$1.700
$1.578
$1.156
Goals
2015
$1.700
$1.576
$1.165
Federal law establishes several broad goals for the SSBG.
2016
$1.700
$1.584
$1.143
The goals focus on promoting self-sufficiency; eliminating
2017
$1.700
$1.583
$1.140
dependency; preventing abuse, neglect, or exploitation of
children and adults; reducing inappropriate institutional
2018
$1.700
$1.588
$1.119
care; and supporting institutional care, when appropriate.
2019
$1.700
$1.565
not avail.
Entitlement Ceiling
2020
$1.700
not avail.
not avail.
The SSBG is an annually appropriated capped entitlement
to states. This means that states are entitled to their share of
Source: SSBG budget documents and TANF spending reports. SSBG
funding, as determined by formula, out of an amount that is
funding levels for FY2013-FY2019 reflect sequestration. FY2013
capped in statute at a specific level. At its highest, the cap
displays annual and supplemental funds after sequestration. Full-year
was set at $2.8 billion (FY1990-FY1995), but over time it
FY2020 appropriations have not yet been enacted.
has decreased to the current level of $1.7 billion.
Allocation Formula
Funding History
SSBG funds are allocated to states according to the relative
Since FY2002, annual appropriations laws have funded the
size of each state’s population based on the most recent data
SSBG at its authorized level of $1.7 billion. However,
available. Grants to Puerto Rico, Guam, the Virgin Islands,
SSBG appropriations since FY2013 have been subject to
and Northern Mariana Islands are based on their share of
sequestration, a spending reduction process by which
Title XX funds in FY1981. Grants to American Samoa are
budgetary resources are canceled to enforce budget policy
based on the relative size of its population compared to the
goals (see Table 1 for a recent funding history). In addition
population of the Northern Mariana Islands.
to annual appropriations, the SSBG has occasionally
received supplemental appropriations to assist states and
Matching Requirements
territories in responding to natural disasters, including in
No match is required for federal SSBG funds, and federal
FY2006, FY2008, and FY2013.
law does not specify a sub-state allocation formula.
TANF Transfers
Eligibility
The Social Security Act authorizes states to transfer a
There are no federal eligibility criteria for SSBG recipients,
portion of their Temporary Assistance for Needy Families
but states may set their own. One exception is that welfare
(TANF) block grants to the SSBG. The 1996 welfare
reform established an income limit of 200% of the poverty
reform law (P.L. 104-193) capped TANF transfers to the
level for recipients of services funded by TANF.
SSBG at 10% of each state’s TANF allotment. Subsequent
legislation (P.L. 105-178) reduced the allowable transfer to
State Plans and Reporting Requirements
4.25% beginning in FY2001. However, this provision has
Each year, states must submit an intended use plan to HHS,
been superseded in every year (from FY2001 on) by
outlining the services to be supported with the state’s SSBG
provisions in annual appropriations acts. These provisions
funds, as well as certain characteristics of the individuals to
have essentially reinstated the transfer authority to 10%.
be served (e.g., children, adults 59 and younger, adults 60
Table 1 shows TANF transfers to the SSBG since FY2010,
and older, and the disabled). States are also required to
as reported in TANF financial data published by HHS.
report annually on SSBG expenditures in various service
categories defined in federal regulations.
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Social Services Block Grant
Services and Expenditures
Prohibited Uses
Federal regulations issued in 1993 established uniform
Although the SSBG is a flexible funding stream, there are
definitions for 28 SSBG service categories, ranging from
several restrictions. The SSBG may not be used for
adoption services to case management, and adult day care
to special services for the disabled. State spending is not
construction, capital improvements, or to purchase land;
limited to the 28 service categories specified in regulation.
cash payments as a service or for costs of subsistence or
Instead, these categories are used as guidelines for reporting
room and board (with limited exceptions);
purposes. Spending on an activity that falls outside the
scope of services defined in regulation is characterized
payment of wages as a social service (except wages of
under other services in annual reports. In addition to
welfare recipients employed in child day care);
supporting social services, states may use SSBG funds for
the provision of most types of medical care (except for
administration, planning, evaluation, and training.
family planning, rehabilitation, initial detoxification, or
medical care provided as an “integral but subordinate
Figure 1 displays total SSBG spending (in millions of
component of a social service”);
dollars and as a percentage of all expenditures) by service
category in FY2017. The figure breaks out spending in the
educational services provided by public schools;
six largest service categories (in dollar terms), along with
child care that does not meet state or local standards;
reported state spending on administrative costs. Remaining
expenditures are consolidated into the all other services
services provided by individuals excluded from
category, which encompasses spending in 23 discrete
participation in Medicare or certain other programs; or
spending categories, ranging from counseling services to
services related to assisted suicide.
congregate meals. The figure also breaks out spending from
SSBG allocations and TANF transfers to the SSBG. In
Waiver Authority
FY2017, the six largest service categories (in dollar terms)
In limited circumstances, the law permits HHS to waive the
combined to account for two-thirds of all spending.
prohibitions on using SSBG funds for (1) the purchase of
Figure 1. FY2017 SSBG Expenditures by Category
land, construction, or capital improvements, or (2) medical
care. HHS may waive these limitations at a state’s request,
provided HHS determines that the state’s circumstances are
extraordinary and that permitting the waiver will contribute
to the state’s ability to carry out the purposes of the SSBG.
Selected SSBG Proposals
In recent years, there have been several proposals to reduce
or eliminate funding for the SSBG. For instance, in the
114th Congress the House Ways and Means Committee
reported out a bill (H.R. 4724) to repeal the SSBG. In the
112th Congress, a bill containing similar provisions (H.R.
5652) passed the House, but the measure was not taken up
Source: Prepared using expenditure data from SSBG allocations and
in the Senate. There were also calls to repeal the SSBG in
TANF transfers to the SSBG, as reported in the FY2017 SSBG Annual
the 112th, 113th, 114th, and 115th Congresses associated with
Report. Percentages may not sum due to rounding. In this figure, all
budget resolutions adopted by the House, and as part of the
other services comprises 23 discrete SSBG spending categories
House Budget Committee’s July 2014 discussion draft on
(including spending on “other services”).
Expanding Opportunity in America.
Recipients
Proponents of eliminating the SSBG have argued that it is a
In FY2017, an estimated 24.3 million individuals received
duplicative funding stream lacking accountability and
services that were funded at least partially by the SSBG.
evidence of effectiveness. Similar arguments have been
This is down from an estimated 25.5 million recipients in
made by the Trump and George W. Bush Administrations
FY2016. About 43% of all service recipients in FY2017
in proposing, as part of certain budget requests (FY2018-
were children. An individual who received multiple SSBG-
FY2020 and FY2007-FY2009), to reduce or eliminate
supported services may be counted as a unique recipient for
SSBG funding. However, others have argued eliminating
each service received.
the SSBG might adversely affect the vulnerable populations
currently being served, noting that the flexible nature of the
Annual report data show that in FY2017 nearly 70% of the
SSBG allows states to respond to local and state-specific
recipients of SSBG-supported services fell into four service
needs. The Obama Administration had proposed in two
categories: information and referral (5.8 million people,
budget requests (FY2016-FY2017) to set aside a portion of
24% of all recipients), case management (4.7 million
SSBG funding for evaluation. None of these budget
people, 19% of recipients), child care (3.5 million people,
proposals have been enacted.
14% of recipients), and child protective services (2.8
million people, 11% of recipients).
Karen E. Lynch, Specialist in Social Policy
IF10115
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Social Services Block Grant
Disclaimer
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