TANF Reauthorization: Senate Finance Committee Discussion Draft of November 19, 2018
December 11, 2018
TANF Reauthorization: Senate Finance Committee Discussion
Draft of November 19, 2018
Introduction
levels through FY2023. In contrast to the Senate Finance
The Temporary Assistance for Needy Families (TANF)
Committee discussion draft, H.R. 5861 would eliminate the
block grant provides grants to states, tribes, and the
TANF contingency fund and re-direct those funds to
territories for a wide range of benefits and services that seek
mandatory child care.
to address the effects and root causes of child poverty and
economic disadvantage. Funding for TANF and related
In addition to federal funds, TANF requires states to spend
programs is set to expire on December 22, 2018.
a minimum total of $10.3 billion per year of their own
funds on TANF or TANF-related programs. This is known
On November 19, 2018, Senate Finance Committee
as the maintenance of effort (MOE) requirement. Both the
Chairman Senator Hatch and ranking member Senator Ron
Senate Finance Committee discussion draft and H.R. 5861
Wyden released a “discussion draft” bill that would make
would extend the state spending requirement at current
policy changes and extend funding for TANF through
levels.
FY2021.
Use of Funds
The release of this Senate Finance Committee discussion
States may use their TANF funds “in any manner that is
draft follows action earlier in the 115th Congress, when the
reasonably calculated” to accomplish the block grant’s
House Ways and Means Committee reported legislation
purpose and goals. There are no requirements that states
(H.R. 5861) that would have reauthorized and restructured
spend a proportion of their funds in specified activities.
the block grant through FY2023. For a discussion of the
Additionally, though funds expended to further the TANF
reported bill, see CRS In Focus IF10892, TANF
goals of providing assistance and ending dependence must
Reauthorization: H.R. 5861.
be spent on needy families, states themselves define what
“needy families” means. Benefits, services, and activities
TANF Purpose and Goals
spent to further TANF goals of reducing out-of-wedlock
Under current law, TANF’s purpose is to increase state
pregnancies and promoting the formation of two-parent
flexibility to achieve four statutory goals: (1) provide
families are not required to be limited to needy or low-
assistance for needy families so that children may remain in
income families.
their own homes; (2) end dependence of needy parents on
government benefits through work, job preparation, and
H.R. 5861 would require states to spend a specified
marriage; (3) reduce out-of-wedlock pregnancies; and (4)
minimum amount of TANF funds on “core” activities
promote the formation and maintenance of two-parent
(assistance and work), as well as prohibit states from
families. The discussion draft would maintain these goals
spending TANF dollars on families whose income exceeds
for the TANF program.
200% of the federal poverty level (FPL). The Senate
Finance Committee discussion draft does not include these
TANF Financing
restrictions. However, it would require states to report on
For FY2018, TANF provided grants to states through its
the share of TANF dollars spent on families receiving
basic block grant ($16.5 billion total) and contingency
assistance with incomes below 100% of the FPL, with
funds ($608 million). TANF also awards competitive grants
incomes below 200% of the FPL, and, consequently, the
(to states and community-based organizations) to operate
share spent on families with incomes above 200% of the
programs to promote responsible fatherhood and healthy
FPL.
marriage. These are funded at $150 million per year. The
TANF statute also provides mandatory funds for child care
Work Requirements
at $2.917 billion per year. These child care funds are
Current TANF work requirements are focused on a
combined at the state level with discretionary funds
requirement that a state meet a minimum work participation
received under the Child Care and Development Block
rate (WPR). The WPR is the share of families with a work-
Grant (CCDBG). TANF research and evaluation activities
eligible individual who is either working or engaged in
are funded at $55 million per year.
activities. The minimum WPR is a performance standard
for the state; it does not apply directly to individual
The Senate Finance Committee discussion draft would
recipients. A state that does not meet the WPR is at risk of a
reauthorize and provide funding for TANF, the contingency
reduction in its federal TANF funds.
fund, responsible fatherhood and healthy marriage
In order for a state to meet the current TANF work
programs, mandatory child care, and research and
participation standard, a work-eligible individual in 50% of
evaluation at current levels through FY2021. H.R. 5861
“all families,” and 90% of families with two parents, that
would extend most TANF and related funding at current
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TANF Reauthorization: Senate Finance Committee Discussion Draft of November 19, 2018
have such an individual must be either working or engaged
Opportunity Plan (IOP) developed within 60 days of an
in activities. A state may lower these percentages by
individual becoming eligible for assistance. It would require
reducing its caseload. There are rules for what activities
the IOP to include an agreement in which the individual
count and the minimum hours per week of participation
acknowledges receipt of publicly funded benefits, establish
required for a family to be counted by the state toward
an employment goal and planned actions to achieve the
meeting its minimum WPR. Work in an unsubsidized job
goal, set forth the obligation of the individual, describe the
and participation in job preparation activities count toward
job counseling and other services the state will provide, and
meeting the standard.
direct the individual to undergo appropriate treatment for
substance abuse if necessary to obtain and maintain
States have historically met their minimum WPR through
employment. It would also require states to plan to meet
either caseload reduction or by having parents in families
with the recipient and review progress under the IOP every
receiving assistance work in unsubsidized jobs. In FY2016,
90 days. H.R. 5861 would similarly require that states
less than a quarter of all non-employed, work-eligible
establish an IOP for individuals.
individuals were engaged in activities in a typical month
(see CRS In Focus IF10856, Temporary Assistance for
Employment and Training Demonstration Projects
Needy Families: Work Requirements).
The Senate Finance Committee discussion draft would
In contrast to H.R. 5861, which would eliminate the WPR
establish employment and training demonstration projects
standard and replace it with a new performance system
within TANF. HHS would be required to award grants to
based on employment outcomes, the Senate Finance
up to 10 states and three Indian tribes to develop and
Committee discussion draft would retain the WPR standard,
evaluate demonstration projects to evaluate the impact of
and make the following changes to it:
alternative engagement strategies in state TANF programs
on employment, earnings, family stability, and other
eliminate the separate and higher work participation
outcomes for individuals who receive assistance under such
requirement for two-parent families, making all families
programs. Regular TANF requirements would be
subject to the same minimum WPR requirement,
suspended for individuals in the demonstrations. Projects
regardless of whether they are headed by one or two
would be permitted to run for five years, and would be
parents;
required to be evaluated using the random assignment
method of conducting experiments. Evaluations of the
set a floor on the minimum WPR standard of 10% in
demonstrations would be financed by existing TANF
FY2020 and 20% from FY2021 onward, such that the
research and evaluation funds. H.R. 5861 would not
caseload reduction credit would no longer allow states
authorize states to operate employment and training pilots.
to reduce their work participation standards to 0%;
allow states to receive partial credit for participation in
Marriage
activities for less than the full hour standard;
When individuals marry, they could lose a portion or all of
their need-tested benefits if their new spouse brings enough
provide some additional flexibility for states to count
income into the family. This is referred to as the “marriage
substance abuse treatment and rehabilitative activities
penalty.” (Note that if a new spouse brings additional
toward meeting the WPR; and
“needs” into the household without offsetting income, a
permit states to “deem” individuals who are engaged in
family’s need-tested benefits could also increase.)
activities with entities that the state has contracted with
to place or employ individuals at the end of their
The Senate Finance Committee discussion draft would
participation as meeting the standard’s requirements
address the “marriage penalty.” It would require the new
without the usual counting of hours.
spouse’s income to be disregarded for at least one year in
determining a family’s TANF assistance eligibility. Further,
Though the Senate Finance Committee discussion draft
the draft would order states to submit a report to HHS that
would not replace the WPR with employment outcome
describes the eligibility criteria for two-parent families to
measures, it would require states to begin to report
receive TANF assistance. This plan would be submitted by
employment outcome measures to the Department of
October 2020. The report would also describe the state’s
Health and Human Services (HHS). The employment
actions to ensure that eligibility rules do not disadvantage
outcome measures include those that would be the basis for
two-parent families.
the new performance system in H.R. 5861.
H.R. 5861 would not require states to disregard the income
of a new spouse. However, it would require states to
Individual Opportunity Plans
include as part of their TANF plan how the state promotes
Under current law, states must assess the employability of
marriage, including through temporary disregards of
adult TANF recipients. States have the option of developing
income from a new spouse.
an individual responsibility plan (IRP) that sets forth an
employment goal, obligations of the individual, and the
Gene Falk, Specialist in Social Policy
services the state will provide. Currently, 37 states and the
Jameson A. Carter, Research Assistant
District of Columbia have an IRP requirement.
Mariam Ghavalyan, Research Assistant
The Senate Finance Committee discussion draft would
IF11044
replace the optional IRP with a mandatory Individual
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TANF Reauthorization: Senate Finance Committee Discussion Draft of November 19, 2018
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