TANF Reauthorization: H.R. 5861
link to page 1 
Updated December 12, 2018
TANF Reauthorization: H.R. 5861
Introduction
Budget savings from eliminating the contingency fund
The Temporary Assistance for Needy Families (TANF)
would be used to offset increased child care funding. H.R.
block grant provides grants to states, tribes, and the
5861 would increase annual appropriations for the Child
territories for a wide range of benefits and services that seek
Care Entitlement to States by $608 million per year, from
to address the effects of and root causes of child poverty
$2.917 billion in FY2018 to $3.525 billion for FY2019
and economic disadvantage. Funding is set to expire on
through FY2023. These mandatory child care funds are
December 22, 2018, for TANF and related programs
integrated with discretionary Child Care and Development
providing mandatory child care funding and responsible
Block Grant (CCDBG) funds at the state level. H.R. 5861
fatherhood and healthy marriage grants. For background on
would also extend competitive responsible fatherhood and
TANF, see CRS In Focus IF10036, The Temporary
healthy marriage grants ($75 million for each in FY2018) at
Assistance for Needy Families (TANF) Block Grant.
their current funding levels through FY2023. It would not
make any policy changes to these grants.
The House Ways and Means Committee reported a bill in
the 115th Congress, H.R. 5861, that would restructure and
Use of Grants
rename TANF as the Jobs and Opportunity with Benefits
Under current law, states may expend federal TANF funds
and Services (JOBS) program. The committee bill would
and count as MOE expenditures spending on benefits and
fund JOBS through FY2023.
services that aim to further TANF’s broad purpose and
statutory goals. Figure 1 shows TANF and MOE spending
Purpose and Goals
by category. Spending on basic assistance, which includes
Under current law, TANF’s purpose is to increase state
the monthly cash assistance checks that TANF is best
flexibility to achieve four statutory goals: (1) provide
known for, totaled $7.4 billion out of $30.9 billion, or 24%
assistance for needy families so that children may remain in
of TANF spending. Work activity spending of $2.8 billion
their own homes; (2) end dependence of needy parents on
accounted for an additional 9% of TANF spending. TANF
government benefits through work, job preparation, and
funds are also used for child care, child welfare services
marriage; (3) reduce out-of-wedlock pregnancies; and (4)
(related to children in, or at risk of, foster care), early
promote the formation and maintenance of two-parent
childhood programs, youth, and state spending on healthy
families. H.R. 5861 would maintain these goals for the
marriage and responsible fatherhood programs.
JOBS program, and add a fifth statutory goal: to reduce the
number of children in poverty by increasing the
Figure 1. Uses of TANF Funds, FY2016
employment entry, retention, and advancement of their
parents.
Financing
For FY2018, TANF provides grants to states in its basic
block grant ($16.5 billion total) and contingency funds
($608 million). The TANF allocation to the states dates
back to the 1996 welfare reform law, and is based on
spending in the pre-TANF programs in the early- to mid-
1990s. In addition to federal funds, TANF requires states to
spend a minimum of $10.3 billion per year of their own
funds on TANF or TANF-related programs. This is known
as the maintenance of effort (MOE) requirement.
Source: Congressional Research Service (CRS), based on data from
the U.S. Department of Health and Human Services (HHS).
H.R. 5861 would provide JOBS grants for FY2019 through
FY2023 at the same level as the TANF basic block grant
did in FY2018. It would not alter the allocation of federal
H.R. 5861 would require that states spend at least 25% of
funds to the states. It would also continue the MOE
their federal JOBS grants and counted MOE spending on a
requirement at its current level.
specified set of “core” activities: assistance, work, and
short-term aid. It would limit JOBS spending to families
H.R. 5861 would eliminate the contingency fund, which
with incomes of 200% or less of the federal poverty level.
was intended to provide extra grants to states during periods
Additional rules for federal JOBS funds would include a
of economic downturns. H.R. 5861 would also limit a
provision that they supplement rather than supplant state
state’s ability to reserve funds for future uses (including
funds. A state’s ability to count nongovernmental
economic recessions) to 15% of the state’s block grant.
expenditures toward the MOE requirement would be
phased-out.
https://crsreports.congress.gov
TANF Reauthorization: H.R. 5861
H.R. 5861 would also prohibit direct spending within
the option of developing an individual responsibility plan
TANF for child care and child welfare services, requiring
(IRP) that sets forth an employment goal, the obligations of
states to instead transfer those funds to the CCDBG and the
the individual, and the services the state will provide.
Stephanie Tubbs Jones Child Welfare Services Program
Currently, 37 states and the District of Columbia have an
(Title IV-B, Subpart 1). It would allow transfers to the
IRP requirement.
Workforce Innovation and Opportunity Act (WIOA)
programs as well as CCDBG and child welfare services of
H.R. 5861 would replace the optional IRP with a mandatory
up to 50% of the block grant. Within that limit, transfers
Individual Opportunity Plan (IOP) within 60 days of a
from JOBS to the child welfare service program could be
work-eligible individual becoming eligible for assistance. It
no more than 10% of the JOBS grant. States could only
would require the plan to include an agreement in which the
transfer funds to WIOA if they were partners in the WIOA
individual acknowledges receipt of publicly funded
“one-stop” system, and would be required to spend funds
benefits, set forth the obligation of the individual to
transferred to WIOA from JOBS on families with incomes
participate in work or work preparation activities, establish
of 200% or less of the federal poverty level. H.R. 5861
an employment goal and planned actions to achieve the
would eliminate the current authority for states to transfer
goal, and describe the job counseling and other services the
funds to the Social Services Block Grant.
state will provide. The IOP would be signed by the
recipient, and there would be a requirement to meet with
In addition to state and local government expenditures,
the recipient to review progress under the IOP every 90
states are currently allowed to count the value of third-party
days. The IOP would incorporate the current minimum
donated services, such as those made by charities in the
hours standard for the WPR (though without restrictions on
state on a TANF-related activity, toward their MOE
hours for education and training) as a standard for
requirement. This ability to count spending from sources
individual recipients. As under current law, states would
other than state or local governments toward the MOE
determine sanctions that would reduce benefits for families
would be phased out under H.R. 5861.
with individuals who refuse to work.
Work Requirements
Performance Outcome Measures
Current TANF rules for engagement are for whether or not
H.R. 5861 would require the U.S. Department of Health
a recipient is counted as a participant toward meeting a
and Human Services (HHS) to establish a system of
state’s minimum work participation rate (WPR). The
assessing program outcomes based on measures used in the
minimum WPR is a performance standard for the state; it
WIOA system. These outcomes would measure job entry,
does not apply directly to individual recipients. States that
job retention, and the median wages of those who exit
do not meet the WPR are at risk of a reduction in their
JOBS. Also, for recipients under the age of 24 who lack a
federal TANF funds.
high school diploma, the measures would consider whether
or not they received a high school diploma or equivalent
In order to meet the current TANF work participation
standard, states must have 50% of “all families” and 90% of
while on the program. These outcome measures would
replace the WPR in assessing state performance. States
families with two parents either working or engaged in
would negotiate state-specific performance levels with
activities. A state may lower these percentages by reducing
HHS. States that do not achieve those performance levels
its caseload. There are rules for what activities count and
would be at risk of a reduction in their federal JOBS funds.
minimum hours per week of participation required for a
family to be counted by the state toward meeting its
Other Provisions
minimum WPR. Work in an unsubsidized job and
H.R. 5861 would require states to measure improper
participation in job preparation activities count toward
payments in their state TANF programs. HHS has said that
meeting the standard.
it lacks the authority under current law to require
States have historically met their minimum WPR through
information needed to determine improper TANF
either caseload reduction or by having parents in families
payments. Current law requires states to develop procedures
receiving assistance work in unsubsidized jobs. In FY2016,
to prevent assistance recipients from drawing TANF cash
less than a quarter of all nonemployed work-eligible
benefits from Automated Teller Machines (ATMs) in
individuals were engaged in activities in a typical month
casinos, liquor stores, and strip clubs. H.R. 5861 would add
(see CRS In Focus IF10856, Temporary Assistance for
establishments that sell marijuana to that list. H.R. 5861
Needy Families: Work Requirements). The bill would
would also require that HHS provide information on state
replace the WPR with (1) a universal engagement
programs, including those related to engagement in work
requirement; and (2) new performance standards for the
activities and performance on the work outcomes measures,
states, based on employment and educational outcomes.
on a publically available “dashboard” website.
Universal Engagement
Gene Falk, Specialist in Social Policy
The term universal engagement means the state attempts to
Mariam Ghavalyan, Research Assistant
get all or nearly all work-eligible recipients working or in
Jameson A. Carter, Research Assistant
activities. This is not in current law, though it was included
in several proposals to reauthorize TANF during the 2002
IF10892
to 2005 period. Under current law, states must assess the
employability of adult TANF recipients. States then have
https://crsreports.congress.gov
TANF Reauthorization: H.R. 5861
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10892 · VERSION 5 · UPDATED
Updated December 12, 2018
TANF Reauthorization: H.R. 5861
Introduction
Budget savings from eliminating the contingency fund
The Temporary Assistance for Needy Families (TANF)
would be used to offset increased child care funding. H.R.
block grant provides grants to states, tribes, and the
5861 would increase annual appropriations for the Child
territories for a wide range of benefits and services that seek
Care Entitlement to States by $608 million per year, from
to address the effects of and root causes of child poverty
$2.917 billion in FY2018 to $3.525 billion for FY2019
and economic disadvantage. Funding is set to expire on
through FY2023. These mandatory child care funds are
December 22, 2018, for TANF and related programs
integrated with discretionary Child Care and Development
providing mandatory child care funding and responsible
Block Grant (CCDBG) funds at the state level. H.R. 5861
fatherhood and healthy marriage grants. For background on
would also extend competitive responsible fatherhood and
TANF, see CRS In Focus IF10036, The Temporary
healthy marriage grants ($75 million for each in FY2018) at
Assistance for Needy Families (TANF) Block Grant.
their current funding levels through FY2023. It would not
make any policy changes to these grants.
The House Ways and Means Committee reported a bill in
the 115th Congress, H.R. 5861, that would restructure and
Use of Grants
rename TANF as the Jobs and Opportunity with Benefits
Under current law, states may expend federal TANF funds
and Services (JOBS) program. The committee bill would
and count as MOE expenditures spending on benefits and
fund JOBS through FY2023.
services that aim to further TANF’s broad purpose and
statutory goals. Figure 1 shows TANF and MOE spending
Purpose and Goals
by category. Spending on basic assistance, which includes
Under current law, TANF’s purpose is to increase state
the monthly cash assistance checks that TANF is best
flexibility to achieve four statutory goals: (1) provide
known for, totaled $7.4 billion out of $30.9 billion, or 24%
assistance for needy families so that children may remain in
of TANF spending. Work activity spending of $2.8 billion
their own homes; (2) end dependence of needy parents on
accounted for an additional 9% of TANF spending. TANF
government benefits through work, job preparation, and
funds are also used for child care, child welfare services
marriage; (3) reduce out-of-wedlock pregnancies; and (4)
(related to children in, or at risk of, foster care), early
promote the formation and maintenance of two-parent
childhood programs, youth, and state spending on healthy
families. H.R. 5861 would maintain these goals for the
marriage and responsible fatherhood programs.
JOBS program, and add a fifth statutory goal: to reduce the
number of children in poverty by increasing the
Figure 1. Uses of TANF Funds, FY2016
employment entry, retention, and advancement of their
parents.
Financing
For FY2018, TANF provides grants to states in its basic
block grant ($16.5 billion total) and contingency funds
($608 million). The TANF allocation to the states dates
back to the 1996 welfare reform law, and is based on
spending in the pre-TANF programs in the early- to mid-
1990s. In addition to federal funds, TANF requires states to
spend a minimum of $10.3 billion per year of their own
funds on TANF or TANF-related programs. This is known
as the maintenance of effort (MOE) requirement.
Source: Congressional Research Service (CRS), based on data from
the U.S. Department of Health and Human Services (HHS).
H.R. 5861 would provide JOBS grants for FY2019 through
FY2023 at the same level as the TANF basic block grant
did in FY2018. It would not alter the allocation of federal
H.R. 5861 would require that states spend at least 25% of
funds to the states. It would also continue the MOE
their federal JOBS grants and counted MOE spending on a
requirement at its current level.
specified set of “core” activities: assistance, work, and
short-term aid. It would limit JOBS spending to families
H.R. 5861 would eliminate the contingency fund, which
with incomes of 200% or less of the federal poverty level.
was intended to provide extra grants to states during periods
Additional rules for federal JOBS funds would include a
of economic downturns. H.R. 5861 would also limit a
provision that they supplement rather than supplant state
state’s ability to reserve funds for future uses (including
funds. A state’s ability to count nongovernmental
economic recessions) to 15% of the state’s block grant.
expenditures toward the MOE requirement would be
phased-out.
https://crsreports.congress.gov
TANF Reauthorization: H.R. 5861
H.R. 5861 would also prohibit direct spending within
the option of developing an individual responsibility plan
TANF for child care and child welfare services, requiring
(IRP) that sets forth an employment goal, the obligations of
states to instead transfer those funds to the CCDBG and the
the individual, and the services the state will provide.
Stephanie Tubbs Jones Child Welfare Services Program
Currently, 37 states and the District of Columbia have an
(Title IV-B, Subpart 1). It would allow transfers to the
IRP requirement.
Workforce Innovation and Opportunity Act (WIOA)
programs as well as CCDBG and child welfare services of
H.R. 5861 would replace the optional IRP with a mandatory
up to 50% of the block grant. Within that limit, transfers
Individual Opportunity Plan (IOP) within 60 days of a
from JOBS to the child welfare service program could be
work-eligible individual becoming eligible for assistance. It
no more than 10% of the JOBS grant. States could only
would require the plan to include an agreement in which the
transfer funds to WIOA if they were partners in the WIOA
individual acknowledges receipt of publicly funded
“one-stop” system, and would be required to spend funds
benefits, set forth the obligation of the individual to
transferred to WIOA from JOBS on families with incomes
participate in work or work preparation activities, establish
of 200% or less of the federal poverty level. H.R. 5861
an employment goal and planned actions to achieve the
would eliminate the current authority for states to transfer
goal, and describe the job counseling and other services the
funds to the Social Services Block Grant.
state will provide. The IOP would be signed by the
recipient, and there would be a requirement to meet with
In addition to state and local government expenditures,
the recipient to review progress under the IOP every 90
states are currently allowed to count the value of third-party
days. The IOP would incorporate the current minimum
donated services, such as those made by charities in the
hours standard for the WPR (though without restrictions on
state on a TANF-related activity, toward their MOE
hours for education and training) as a standard for
requirement. This ability to count spending from sources
individual recipients. As under current law, states would
other than state or local governments toward the MOE
determine sanctions that would reduce benefits for families
would be phased out under H.R. 5861.
with individuals who refuse to work.
Work Requirements
Performance Outcome Measures
Current TANF rules for engagement are for whether or not
H.R. 5861 would require the U.S. Department of Health
a recipient is counted as a participant toward meeting a
and Human Services (HHS) to establish a system of
state’s minimum work participation rate (WPR). The
assessing program outcomes based on measures used in the
minimum WPR is a performance standard for the state; it
WIOA system. These outcomes would measure job entry,
does not apply directly to individual recipients. States that
job retention, and the median wages of those who exit
do not meet the WPR are at risk of a reduction in their
JOBS. Also, for recipients under the age of 24 who lack a
federal TANF funds.
high school diploma, the measures would consider whether
or not they received a high school diploma or equivalent
In order to meet the current TANF work participation
standard, states must have 50% of “all families” and 90% of
while on the program. These outcome measures would
replace the WPR in assessing state performance. States
families with two parents either working or engaged in
would negotiate state-specific performance levels with
activities. A state may lower these percentages by reducing
HHS. States that do not achieve those performance levels
its caseload. There are rules for what activities count and
would be at risk of a reduction in their federal JOBS funds.
minimum hours per week of participation required for a
family to be counted by the state toward meeting its
Other Provisions
minimum WPR. Work in an unsubsidized job and
H.R. 5861 would require states to measure improper
participation in job preparation activities count toward
payments in their state TANF programs. HHS has said that
meeting the standard.
it lacks the authority under current law to require
States have historically met their minimum WPR through
information needed to determine improper TANF
either caseload reduction or by having parents in families
payments. Current law requires states to develop procedures
receiving assistance work in unsubsidized jobs. In FY2016,
to prevent assistance recipients from drawing TANF cash
less than a quarter of all nonemployed work-eligible
benefits from Automated Teller Machines (ATMs) in
individuals were engaged in activities in a typical month
casinos, liquor stores, and strip clubs. H.R. 5861 would add
(see CRS In Focus IF10856, Temporary Assistance for
establishments that sell marijuana to that list. H.R. 5861
Needy Families: Work Requirements). The bill would
would also require that HHS provide information on state
replace the WPR with (1) a universal engagement
programs, including those related to engagement in work
requirement; and (2) new performance standards for the
activities and performance on the work outcomes measures,
states, based on employment and educational outcomes.
on a publically available “dashboard” website.
Universal Engagement
Gene Falk, Specialist in Social Policy
The term universal engagement means the state attempts to
Mariam Ghavalyan, Research Assistant
get all or nearly all work-eligible recipients working or in
Jameson A. Carter, Research Assistant
activities. This is not in current law, though it was included
in several proposals to reauthorize TANF during the 2002
IF10892
to 2005 period. Under current law, states must assess the
employability of adult TANF recipients. States then have
https://crsreports.congress.gov
TANF Reauthorization: H.R. 5861
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10892 · VERSION 5 · UPDATED