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Updated May 23, 2024
Social Services Block Grant
Introduction
Table 1 shows recent TANF transfer levels, as reported in
The Social Services Block Grant (SSBG) is a flexible
TANF financial data published by HHS.
funding stream used by states and territories to support a
wide variety of social services. At the federal level, the
Table 1. SSBG Funding History
SSBG is administered by the U.S. Department of Health
(nominal dol ars in bil ions)
and Human Services (HHS).
Fiscal
SSBG Funding
SSBG
TANF
Authorization
Year
Ceiling
Appropriation
Transfer
Social services for certain public assistance recipients have
2013
$1.700
$1.613 + $0.475
$1.135
been authorized under various titles of the Social Security
Act since 1956. The SSBG, in its current form, was created
2014
$1.700
$1.578
$1.156
in 1981 (P.L. 97-35). The SSBG is permanently authorized
by Title XX, Subtitle A, of the Social Security Act (42
2015
$1.700
$1.576
$1.165
U.S.C. §§1397 et seq.).
2016
$1.700
$1.584
$1.143
Purposes
2017
$1.700
$1.583
$1.140
Statute outlines several broad purposes for the SSBG. The
2018
$1.700
$1.588
$1.119
purposes focus on promoting self-sufficiency; eliminating
dependency; preventing abuse, neglect, or exploitation of
2019
$1.700
$1.595
$1,119
children and adults; reducing inappropriate institutional
2020
$1.700
$1.600
$1.131
care; and supporting institutional care, when appropriate.
2021
$1.700
$1.603
$1.126
Entitlement Ceiling
2022
$1.700
$1.603
$1.136
The SSBG is an annually appropriated capped entitlement
to states. This means that states are entitled to their share of
2023
$1.700
$1.603
not avail.
funding, as determined by formula, out of an amount that is
2024
$1.700
$1.603
not avail.
capped in statute at a specific level. At its highest, the cap
was set at $2.8 billion (FY1990-FY1995), but over time it
Source: SSBG budget documents and TANF spending reports. SSBG
has decreased to the current level of $1.7 billion.
funding levels reflect sequestration. FY2013 displays annual and
Funding History
supplemental funds after sequestration.
Since FY2002, annual appropriations laws have funded the
Allocation Formula
SSBG at its authorized level of $1.7 billion. However,
SSBG funds are allocated to states according to the relative
SSBG appropriations since FY2013 have been subject to
size of each state’s population based on the most recent data
sequestration, a spending reduction process by which
available. Grants to Puerto Rico, Guam, the Virgin Islands,
budgetary resources are canceled to enforce budget policy
and Northern Mariana Islands are based on their share of
goals (see Table 1 for a recent funding history). In addition
Title XX funds in FY1981. Grants to American Samoa are
to annual appropriations, the SSBG has occasionally
based on the relative size of its population compared to the
received supplemental appropriations to assist states and
population of the Northern Mariana Islands.
territories in responding to natural disasters, including in
FY2006, FY2008, and FY2013.
Matching Requirements
TANF Transfers
No match is required for federal SSBG funds, and federal
law does not specify a sub-state allocation formula.
The Social Security Act authorizes states to transfer a
portion of their Temporary Assistance for Needy Families
Eligibility
(TANF) block grants to the SSBG. The Personal
There are no federal eligibility criteria for SSBG recipients,
Responsibility and Work Opportunity Reconciliation Act of
but states may set their own. One exception is that TANF
1996 (P.L. 104-193) capped TANF transfers to the SSBG at
10% of each state’s
law sets an income limit of 200% of the poverty level for
TANF allotment. Subsequent
recipients of SSBG services funded by TANF.
legislation (P.L. 105-178) reduced the allowable transfer to
4.25% beginning in FY2001. However, this provision has
State Plans and Reporting Requirements
been superseded in every year (from FY2001 on) by
Each year, states must submit an intended use plan to HHS,
provisions in annual appropriations acts. These provisions
outlining the services to be supported with the state’s SSBG
have effectively reinstated the transfer authority to 10%.
funds, as well as certain characteristics of the individuals to
be served (e.g., children, adults 59 and younger, adults 60
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Social Services Block Grant
and older). States are also required to report annually on
Prohibited Uses
SSBG expenditures in various service categories defined in
Although the SSBG is a flexible funding stream, there are
federal regulations.
several restrictions. The SSBG may not be used for
Services and Expenditures
• construction, capital improvements, or to purchase land;
Federal regulations issued in 1993 established uniform
• cash payments as a service or for costs of subsistence or
definitions for 29 SSBG service categories, ranging from
room and board (with limited exceptions);
adult day care to special services for the disabled. One of
the 29 service categories is other services. This category is
• payment of wages as a social service (except wages of
defined to include services not covered by the definitions
welfare recipients employed in providing child care);
for the other 28 service categories. In addition to supporting
• the provision of most types of medical care (except for
social services in these 29 categories, states may use SSBG
family planning, rehabilitation, initial detoxification, or
funds for administration, planning, evaluation, and training.
medical care provided as an “integral but subordinate
component of a social service”);
Figure 1 displays total FY2021 SSBG expenditures (the
most recent available) by service category. Spending is
• educational services provided by public schools;
shown in millions of dollars and as a percentage of all
• child care that does not meet state or local standards;
expenditures. The figure breaks out spending in the six
largest service categories (in dollar terms), along with
• services provided by individuals excluded from
reported state spending on administrative costs. Remaining
participation in Medicare or certain other programs; or
expenditures are consolidated into a category for all other
• services related to assisted suicide.
services, which encompasses spending in 23 discrete
service categories, ranging from counseling services to
Waiver Authority
congregate meals. The figure also breaks out spending from
In limited circumstances, the law permits HHS to waive the
SSBG allocations and from TANF transfers to the SSBG. In
prohibitions on using SSBG funds for (1) the purchase of
FY2021, the six largest service categories (in dollar terms)
land, construction, or capital improvements, or (2) medical
combined to account for two-thirds of all spending.
care. HHS may waive these limitations at a state’s request,
Figure 1. FY2021 SSBG Expenditures by Category
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
Over the years, there have been 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 in the
Senate. There were also calls to repeal the SSBG in the
112th, 113th, 114th, and 115th Congresses associated with
Source: Prepared using data from the FY2021 SSBG Annual Report.
budget resolutions adopted by the House, and as part of the
Percentages may not sum due to rounding. In this figure, All Other
House Budget Committee’s July 2014 discussion draft,
Services comprises 23 discrete SSBG service categories (including
Expanding Opportunity in America.
spending in the other services category).
Proponents of eliminating the SSBG have argued that it is a
Recipients
duplicative funding stream lacking accountability and
In FY2021, an estimated 20.9 million recipients received
evidence of effectiveness. Similar arguments were made by
services that were funded at least partially by the SSBG.
the Trump and George W. Bush Administrations in
This is 8% fewer recipients than in FY2020 and 30% fewer
proposing, as part of certain budget requests (FY2018-
than in FY2014 (the peak in recent years). About 46% of all
FY2020 and FY2007-FY2009), to reduce or eliminate
service recipients in FY2021 were children. (An individual
SSBG funding. However, others have argued eliminating
who received multiple SSBG-supported services may be
the SSBG might adversely affect the vulnerable populations
counted as a unique recipient for each service received.)
currently being served, noting that the flexible nature of the
SSBG allows states to respond to local and state-specific
FY2021 annual report data show that more than half (53%)
needs. The Obama Administration had proposed in two
of the recipients of SSBG-supported services in that year
budget requests (FY2016-FY2017) to set aside a portion of
fell into the following four service categories: information
SSBG funding for evaluation. None of these budget
and referral (3.7 million people, 18% of all recipients),
proposals have been enacted.
child protective services (2.7 million people, 13% of
recipients), child care (2.7 million people, 13% of
Karen E. Lynch, Specialist in Social Policy
recipients), and case management (1.9 million people, 9%
of recipients).
IF10115
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Social Services Block Grant
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