Temporary Assistance for Needy Families (TANF): Eligibility and Benefit Amounts in State TANF Cash Assistance Programs

Congressional Research Service 7-5700 www.crs.gov R43634 Summary The Temporary Assistance for Needy Families (TANF) block grant helps states fund, among other benefits and services, cash assistance for needy families with children. While there are some federal rules that determine who may qualify for TANF-funded cash assistance (e.g., the family must have a dependent child), states determine the financial eligibility criteria and cash assistance benefit amounts. There is a large amount of variation among the states in the income thresholds that determine whether a family is eligible for cash assistance and in the benefit amounts paid. Most states only admit very poor families onto the benefit rolls. In July 2013, the majority of states (29 states and the District of Columbia (DC)) required that a single mother caring for two children earn less than $814 per month to gain entry to the benefit rolls—an earnings level representing about half of 2013 poverty-level income. States often permit families with a working member who obtains a job while on the rolls to remain eligible for TANF at higher earnings levels, though in many states such eligibility is retained for a limited period of time. States also usually require that a family has assets below a specified amount in order to qualify for benefits. In July 2013, 27 states and DC required applicant families to have $2,000 or less in assets to gain entry to the benefit rolls. In most states, the value of at least one of the family’s cars is not counted toward the state’s asset limit. In July 2013, the state with the lowest maximum benefit paid to a family consisting of a single parent and two children was Mississippi, with a benefit of $170 per month (10% of poverty-level income). Among the contiguous 48 states and DC, the highest maximum benefit was paid in New York: $789 per month for a single parent of two children in New York City (49% of poverty-level income). The benefit for such a family in the median jurisdiction (DC, whose maximum benefit ranked 26th among the 50 states and DC), was $428, a benefit amount that represented 26% of monthly poverty-level income in 2013. TANF maximum benefits vary greatly by state; there is also a very apparent regional pattern to benefit amounts. States in the South tend to have the lowest benefit payments; states in the Northeast have the highest benefits. Though the 1996 welfare reform law that created TANF revamped many of the rules for cash assistance for needy families, states determined income eligibility rules and maximum benefit amounts even before enactment of the law. There were large variations among the states in benefit amounts before the 1996 welfare law. The regional pattern to benefit amounts—with relatively low benefits in the South—also existed under pre-TANF law. Additionally, cash assistance benefit amounts for needy families are not automatically adjusted for inflation by the states, and have lost considerable value in terms of their purchasing power over time. From 1981 to 2013, the inflation-adjusted value of the maximum cash assistance benefit for needy families in the median state declined by 45%. Some of this decline occurred before the 1996 welfare law: between 1981 and 1996 the value of cash assistance benefits had already declined by 28%. Food assistance benefits under the Supplemental Nutrition Assistance Program (SNAP, the program formerly known as food stamps) offset some of this decline. However, from 1981 to 2013 the value of the combined cash and food assistance benefit for a family of three with no other cash income in the median state declined by 19% in inflation-adjusted terms. Contents Introduction 1 Family Circumstances and TANF Eligibility and Benefits 1 Eligibility for TANF Cash Assistance 2 Income Eligibility Criteria for New Applicants 3 Income Eligibility for Families Already on the Rolls 4 Asset Limits for New Applicant Financial Eligibility 5 TANF Maximum Cash Benefit Amounts 7 State and Regional Variation in TANF Cash Assistance Maximums 7 Combined TANF Cash and SNAP Food Assistance 9 Change in Benefits Over Time 10 AFDC and TANF Maximum Benefits 11 Trends in Cash and Food Assistance 12

Figures Figure 1. Maximum Monthly Earnings An Applicant Family May Have and Be Eligible for TANF Cash Assistance: Single Parent Caring for Two Children, July 2013 4 Figure 2. State TANF Cash Assistance Program Asset Limits for New Applicant Single Parents Caring for Two Children, July 2013 6 Figure 3. TANF Maximum Monthly Benefits for a Single Parent Caring for Two Children, by State, July 2013 8 Figure 4. Combined Monthly TANF Cash Assistance and SNAP Benefit, Single Parent Caring for Two Children and No Other Cash Income, July 2013 10 Figure 5. AFDC/TANF Maximum Benefits for a Family of Three in the Median State, July of Selected Years 1981-2013 11 Figure 6. Combined Cash Assistance and Food Assistance for a Family of Three with No Other Cash Income, July 1981, July 1996, and July 2013 12

Tables Table 1. State TANF Cash Assistance Program Vehicle Disregards from Asset Limits for New Applicant Families, July 2013 6

Table A-1. Maximum Monthly Earnings an Applicant Family Comprising a Single Parent Caring for Two Children May Have to Gain Eligibility for TANF Cash Assistance, July 2013 14 Table A-2. Maximum Monthly Earnings a Single Parent Caring for Two Children May Have for Applicants or for Recipients to Retain Eligibility for TANF Cash Assistance, July 2013 15 Table A-3. Maximum Monthly TANF Cash Assistance Benefit for a Single Parent Caring for Two Children, July 2013 17 Table A-4. Maximum Monthly TANF Cash Assistance Benefits Paid to a Family Headed by a Single Parent, By Family Size, July 2013 19 Table A-5. Maximum Combined TANF and SNAP Benefit for a Single Parent Caring for Two Children, July 2013 21 Table A-6. Maximum Monthly AFDC/TANF Cash Assistance Benefits for a Single Parent Caring for Two Children, July of Selected Years, 1981-2013 22 Table A-7. Maximum Monthly AFDC/TANF Cash Assistance Benefit for a Single Parent Caring for Two Children, for Selected Years, 1981-2013, in Constant July 2013 Dollars 24 Table A-8. Maximum Monthly AFDC/TANF Cash Assistance Benefit for a Single Parent Caring for Two Children, as a Percent of the Federal Poverty Level, July of Selected Years, 1981-2013 26

Appendixes Appendix. State Tables 14

Contacts Author Contact Information 27 Acknowledgments 27

Introduction The Temporary Assistance for Needy Families (TANF) block grant helps fund, among other benefits and services, state cash assistance programs to needy families with children. Cash assistance generally represents a benefit paid monthly to help meet a family’s ongoing basic needs. Federal law prescribes the general eligible population for state cash assistance programs. For example, a family receiving assistance must have a dependent child. However, there are no federal rules defining what makes a family financially “needy” or determining what benefit amounts are paid. Financial need and benefit amounts are determined by the states. Cash assistance programs for needy families were a major focus of the “welfare reform” debates that led to the enactment of the 1996 welfare reform law (the Personal Responsibility and Work Opportunity Reconciliation Act, P.L. 104-193). TANF, which was created in that law, has as its overarching purpose “to increase the flexibility of states” in operating programs to achieve its statutory goals. State TANF cash assistance programs vary greatly in their design, some of which is attributable to the flexibility afforded states in the 1996 law. Before the law, cash assistance for needy families with children was provided through the Aid to Families with Dependent Children (AFDC) program. Though TANF increased the flexibility of states in designing their cash assistance programs, states determined income eligibility thresholds and benefit amounts under AFDC as well. This report describes state TANF financial eligibility rules and maximum benefit amounts. The information represents Congressional Research Service (CRS) calculations based on data from the Urban Institute’s Welfare Rules Database. That information is supplemented by historical information on maximum AFDC benefits from a CRS survey of the states for selected years from 1981 to 1996. Family Circumstances and TANF Eligibility and Benefits A family’s circumstances determine whether it is eligible for TANF cash assistance and the amount of benefits it may receive. TANF cash assistance is a need-tested benefit (i.e., it is intended to pay benefits and reflect a family’s financial need). The factors that affect family financial need include its size (larger families “need” more income to attain a specified standard of living), income, assets, and expenses. State rules for TANF cash assistance take into account those factors—which differ from family to family. State rules also often differ in terms of how different types of income and expenses are considered in determining financial eligibility and benefits for TANF cash assistance. This report will use the rules of state TANF cash assistance programs to describe eligibility standards and benefit amounts. To simplify the descriptions of TANF cash assistance eligibility and benefits, most examples in this report will depict the rules that apply to a single mother caring for two children. Families that are headed by a recipient single parent have historically been the focus of much of cash assistance policy for needy families. However, the current TANF cash assistance caseload is diverse, with large shares of the caseload representing different family settings and benefits paid to the family only on behalf of a child. The descriptions in this report also assume that the family’s sole source of other cash income is earnings. They will not take into account any expenses that might change TANF cash assistance amounts or eligibility, such as child care expenses. TANF cash assistance income eligibility thresholds and benefit amounts vary greatly from state to state. To provide some context for the dollar amounts associated with income eligibility thresholds and benefit amounts, comparison will be made to the federal poverty level (FPL), which is uniform across the contiguous 48 states and the District of Columbia. (The federal poverty level is higher in Alaska and Hawaii.) For a single mother with two children in the 48 states and the District of Columbia, the 2013 federal poverty level was $19,530—or $1,628 per month. Additionally, because there is a great deal of variation in income eligibility thresholds and benefit amounts among the states, this report will discuss the states with the highest and lowest eligibility threshold or benefit amount, as well as the amounts for the “median state.” If states are ranked by their eligibility thresholds or benefit amounts from 1 to 51 (50 states and District of Columbia), with 1 being the lowest and 51 being the highest, the state that ranked 26th would be the “median state.” Eligibility for TANF Cash Assistance Federal law limits TANF eligibility to needy families with a dependent child. It defines a dependent child as a person under the age of 18, or age 18 if a full-time student in secondary school. Individuals and couples without children are ineligible for TANF-funded cash assistance. Federal law also prohibits states from providing TANF-funded assistance to certain individuals in families with children. Aside from these rules, states have broad discretion in designing their cash assistance programs. Income Eligibility Criteria for New Applicants Federal law requires states to restrict TANF-funded cash assistance to “needy” families. Therefore, states must require that TANF families meet a test of financial need. However, there is no federal definition of need. States define the criteria for determining whether a family is financially needy and eligible for TANF cash assistance. States typically limit entry to the cash assistance program to families with only a fraction of poverty-level income. Figure 1 shows, by state, the maximum monthly earnings a single parent with two children applying for TANF cash assistance may have and gain entry to the benefit rolls. The figure provides as a reference the monthly federal poverty level (with the higher levels for Alaska and Hawaii). As shown on the figure, the maximum earnings thresholds for applicants in July 2013 were below the federal poverty level in all states except Wisconsin. In that state, it was technically possible for families with incomes as high as 115% of the FPL to be eligible for TANF, but the circumstances that would permit a working Wisconsin parent to receive TANF cash are limited. For the other contiguous 47 states and the District of Columbia, maximum earnings thresholds for a single mother caring for two children ranged from $1,526 per month in Nevada (94% of poverty-level income) to $268 per month in Alabama (17% of poverty-level income). The median state was Oklahoma, at $804 per month (about 49% of poverty-level income). In a majority of states (29 states and the District of Columbia), earnings of $814 per month—representing half of poverty-level income—disqualify a family of three from coming onto the assistance rolls. Figure 1. Maximum Monthly Earnings An Applicant Family May Have and Be Eligible for TANF Cash Assistance: Single Parent Caring for Two Children, July 2013

Source: Congressional Research Service (CRS), based on data from the Urban Institute’s Welfare Rules Database Notes: Maximum earnings levels shown on the figure differ from those shown in the Urban Institute’s Welfare Rules Databook for July 2013 for two reasons. First, the Databook showed the maximum earnings allowed to be “technically” eligible for assistance (sometimes used for Supplemental Nutrition Assistance Program (SNAP) benefits, rather than qualifying for a cash benefit). This figure shows the maximum earnings a family may have and still receive cash. In addition, the maximum earnings a family may have can vary within a state. For Connecticut, Pennsylvania, and Virginia, the Databook uses the eligibility and benefit schedules for a different sub-state region than does this figure. The information in this figure is also presented in tabular form in Table A-1. Income Eligibility for Families Already on the Rolls Many states provide financial incentives for those already on the rolls to gain employment. This is done by allowing recipients to retain eligibility and keep some of their TANF cash assistance while working through disregarding some earnings in the financial eligibility and benefit determination calculations. States have adopted very different forms of these “earnings disregards,” with the effect being substantial variation among the states in whether and how much TANF cash assistance is provided to families with a working parent. Some states provide generous earnings disregards for only a short period of time (e.g., three months)—even disregarding all earnings and allowing families to keep all of their cash assistance for that period—providing the TANF cash assistance as only a short transitional earnings supplement. Other states provide for the same earnings disregard no matter how many months a recipient is working, supplementing earnings on an ongoing rather than a transitional basis. Table A-2 in the Appendix shows maximum monthly earnings thresholds by state for both applicants and recipients. It shows that the maximum earnings thresholds are often higher for recipients than applicants. For example, applicant single parents with two children with earnings up to $814 per month (half of poverty-level income) are eligible for TANF cash assistance in 21 states. However, at that earnings level a recipient single parent with two children who gets a job may retain TANF eligibility in the first month on the job in 40 states and the District of Columbia, and even retain eligibility in the 13th month on the job in 31 states and the District of Columbia. Asset Limits for New Applicant Financial Eligibility Assets represent the value of liquid financial assets such as bank accounts and certain property. Federal law and regulations do not require states to administer an asset test to determine if a family is financially needy. Most states do require families applying for TANF cash assistance to both meet income eligibility criteria and have assets below a certain amount. However, in recent years a number of states have eliminated asset tests for eligibility and base financial eligibility on income alone. Figure 2 categorizes states by their asset limit for new applicant families comprising a single parent with two children in July 2013. In that month, a total of seven states (Alabama, Colorado, Hawaii, Louisiana, Maryland, Ohio, and Virginia) had eliminated their asset limits entirely. The remaining states and the District of Columbia retained an asset test. The most common asset limit in July 2013 was $2,000, the amount in 18 states and the District of Columbia. Figure 2. State TANF Cash Assistance Program Asset Limits for New Applicant Single Parents Caring for Two Children, July 2013

Source: Congressional Research Service (CRS), based on data from the Urban Institute’s Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). In states with asset tests, the value of vehicles is either fully or partially disregarded. Table 1 categorizes states by their state TANF cash assistance program vehicle disregards for new applicant families in July 2013. A total of 18 states and the District of Columbia disregarded the value of all vehicles in determining financial eligibility (including the six states without asset limits). Another 18 states disregarded the full value of at least one vehicle. The remaining 14 states disregarded a portion of the value of vehicles, which was determined at either their fair market values or equity values. Fair market value represents an estimate of what a vehicle could be sold for. Equity value represents its fair market value minus any outstanding loans that financed its purchase. The vehicle disregards varied from $4,600 in equity value (Tennessee) to $10,000 in fair market value (Minnesota) or $10,000 in equity value (Oregon and Wisconsin). Table 1. State TANF Cash Assistance Program Vehicle Disregards from Asset Limits for New Applicant Families, July 2013 Disregard States

All vehicles in the household (18 states and DC) AL, CO, HI, LA, MD, OH, VA (states with no asset limits) AK, AZ, DE, DC, KS, KY, MI, MS, NJ, NM, NC, UT

One vehicle per household (14 states) AR, ID, IL, IA, ME, MO, MT, NE, NV, ND, PA, SD, WV, WY

One vehicle per adult (2 states) RI, VT

One vehicle per licensed driver (2 states) NH, SC

A portion of the value of vehicles (14 states) TN: $4,600 in equity value CA: $4,650 fair market value per licensed driver GA: $4,650 in equity value NY: Greater of $4,650 in fair market value or $9,300 in equity value MA: $5,000 in fair market value or $10,000 in equity value TX: $4,650 in equity value IN, OK, WA: $5,000 in equity value FL: $8,500 in equity value CT: $9,500 in equity value OR, WI: $10,000 in equity value MN: $10,000 in fair market value

Source: Congressional Research Service (CRS), based on data from the Urban Institute’s Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Additionally, states usually do not count the value of a home toward their asset limits. Some states also exclude the value of certain other assets, such as restricted savings accounts (e.g., Individual Development Accounts (IDAs)). TANF Maximum Cash Benefit Amounts The TANF maximum cash benefit amount is generally what is paid to a family that has no other income and complies with program rules. Families that have additional sources of cash income, such as Social Security, receive a reduced benefit because some of their need is met by that other form of cash income. States have adopted a wide range of policies for determining benefits paid to families with earnings; though typically such families also receive a reduced benefit, particularly after they have been working a certain number of months. Additionally, families not in compliance with a state’s TANF rules (e.g., work requirements) might be financially sanctioned, and thus receive a reduced benefit. TANF maximum cash benefits generally vary by family size, on the presumption that larger families have greater financial need. Only Idaho and Wisconsin pay the same maximum benefit regardless of family size. This section will focus on maximum benefits for a family headed by a single parent caring for two children (family size of three). See Table A-4 in the Appendix for TANF maximum benefits for families headed by a single parent caring for one through five children. State and Regional Variation in TANF Cash Assistance Maximums There is a great deal of variation in maximum benefits by state. For a single parent caring for two children, the TANF cash assistance maximum monthly benefits ranged from a high of $923 in Alaska to a low of $170 in Mississippi in July 2013. The highest maximum monthly benefit outside of Alaska for such a family was in New York, $789 per month; the median jurisdiction maximum benefit was $428 per month in the District of Columbia. In July 2013, all states paid monthly maximum benefits for a single parent caring for two children that were less than half of federal poverty-level income. New York’s $789 per month represented 48.5% of the FPL. Alaska had a higher monthly FPL, $1,989 per month, for a family of three; its maximum benefit of $923 was 45.4% of the FPL. Figure 3 provides a map showing the TANF maximum monthly cash assistance benefit by state in July 2013 for a single parent caring for two children. The map shows the states categorized by their maximum benefits. The categories themselves are based on benefits as a percent of monthly poverty-level income. For example, a state with a maximum benefit of less than $325 per month paid less than about 20% of poverty-level income for a family of three in 2013. The map shows that not only do benefits vary widely among the states, but there is a pronounced regional pattern in benefit amounts. States in the South paid the lowest benefits. States in the Northeast paid the highest benefits. Figure 3. TANF Maximum Monthly Benefits for a Single Parent Caring for Two Children, by State, July 2013

Source: Congressional Research Service (CRS), based on data from the Urban Institute’s Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Notes: The map’s shading categories are based on monthly benefits as a percent of the federal poverty level for the 48 states and District of Columbia. Under $325 per month was less than 20% of poverty-level income; $325 to $489 per month was 20% to 30% of poverty-level income; $490 to $649 per month was 30% to 40% of poverty-level income; and $650 per month or more was more than 40% of poverty-level income. The information in this map is also shown in tabular form in the Appendix, Table A-3. Combined TANF Cash and SNAP Food Assistance Families receiving TANF cash assistance are automatically financially eligible for food benefits from the Supplemental Nutrition Assistance Program (SNAP). Thus, a more complete picture of the benefits a TANF family might receive is the combined TANF cash and SNAP food benefit. Figure 4 shows the combined TANF cash and SNAP food assistance benefit for a single parent caring for two children and no other cash income for July 2013. It shows that in all states, the combined TANF and SNAP benefits for such a family fall short of the federal poverty threshold. In New York, the combined TANF cash and SNAP benefit totaled $1,123, reflecting 69.0% of the FPL. SNAP policy is generally predicated on households using 30% of their net income (after deductions for allowable expenses) for food. The SNAP benefits make up any deficit between what is needed to purchase a low-cost but nutritionally adequate diet and 30% of net income. A family’s TANF cash benefit is counted in determining income for the purposes of SNAP. Thus, for a family with no income other than TANF, SNAP benefits are higher in states with lower TANF cash benefits, and lower in states with higher TANF cash benefits. Therefore, SNAP mitigates some of the differences in income produced by the variation in TANF cash benefits across the states. Though historically the SNAP benefit was thought of as a supplement to the TANF cash benefit, in July 2013 a family of three without any other income was eligible for a greater SNAP benefit than TANF cash benefit in 28 states and the District of Columbia. It should be noted that in July 2013, the SNAP benefit was higher than usual because of a temporary SNAP benefit increase enacted in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5). That increase expired in November 2013, and monthly SNAP benefits were reduced by approximately 5.5% for a family of three. Figure 4. Combined Monthly TANF Cash Assistance and SNAP Benefit, Single Parent Caring for Two Children and No Other Cash Income, July 2013

Source: Congressional Research Service (CRS) calculations based on data from the Urban Institutes Welfare Rules Database and the U.S. Department of Agriculture (USDA). Notes: SNAP benefit assumes that a household receives only the SNAP standard deduction, and no deductions for expenses allowed under SNAP law (high shelter costs, dependent care deductions). The information in this figure is also shown in tabular form in Appendix, Table A-5.

Change in Benefits Over Time The amount paid to a family under TANF is decided by states—there are no federal rules for how states determine the amount of TANF cash assistance. Before the 1996 welfare reform law, Aid to Families with Dependent Children (AFDC) paid cash assistance to needy families with children. States also determined the maximum amount of cash assistance paid to a family under AFDC. Examining maximum cash assistance benefits for 1981 through 2013, AFDC and TANF cash assistance maximum benefits increased over time, but not enough to compensate for price increases. AFDC and TANF Maximum Benefits Figure 5 shows the maximum cash assistance benefit for a single parent caring for two children in the median state for selected years from 1981 to 2013. In 1981, the maximum monthly benefit in the median state was $305, an amount that increased to $428 by 2013. However, this increase was not enough to compensate for inflation over this period. In July 2013 dollars (past dollars adjusted to reflect what they could purchase in July 2013), the maximum cash assistance benefit for such a family declined from $778 in 1981 to $428 in 2013. This represents a decline in the purchasing power of the maximum benefit in the median state of 45% since 1981. A large share of that decline occurred under AFDC—before the enactment of the 1996 welfare reform law. From 1981 to 1996, the maximum AFDC cash benefit in the median state declined from $778 per month to $561 in 2013 dollars—a 28% reduction. Figure 5. AFDC/TANF Maximum Benefits for a Family of Three in the Median State, July of Selected Years 1981-2013 In Nominal Dollars and in Constant July 2013 Dollars

Source: Congressional Research Service (CRS). Information for the TANF years (i.e., after 1996) is based on data from the Urban Institute’s Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Information for AFDC (1996 and earlier years) is from the CRS survey of state AFDC financial eligibility and benefit amounts. Notes: Constant dollars were computed using the Consumer Price Index for all Urban Consumers (CPI-U), not seasonally adjusted for July of selected years. State-by-state information on maximum benefit amounts for the selected years shown in this figure are shown in tabular form in the Table A-6 and Table A-7. Additionally, Table A-8 shows state-by-state maximum benefits for a single parent caring for two children for the selected years as a percent of the FPL. Trends in Cash and Food Assistance Unlike AFDC and TANF cash assistance, benefit amounts for SNAP food assistance (formerly called Food Stamps) are set in federal law, and generally have been adjusted over time for inflation. SNAP benefits are tied to the “Thrifty Food Plan,” a market basket of foods to provide a low-cost, nutritionally adequate diet. Over time, Congress has periodically adjusted SNAP benefits to be higher (or slightly lower) than the Thrifty Food Plan. An ad-hoc increase in SNAP benefits was legislated in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5); that increase was effective April 1, 2009, and expired on October 31, 2013. Over time, the decline in the value of AFDC and TANF cash benefits was partially compensated for by an increase in SNAP benefits. Just as SNAP pays higher benefits in states with lower TANF cash assistance benefits at a point in time, the erosion of the cash assistance benefit relative to inflation has resulted in higher SNAP benefits paid to families that receive cash assistance over time. Figure 6 shows the combined AFDC or TANF cash assistance benefits and SNAP food assistance benefits for a single parent caring for two children with no other cash income in the median state for July 1981, July 1996, and July 2013 in constant July 2013 dollars. Over this period, the value of the combined benefit declined by 19%. Additionally, the food assistance portion of the benefit increased as a share of the combined benefit—to the point where the SNAP benefit was greater than the TANF cash benefit in the median state in July 2013. The July 2013 SNAP benefit includes the increase in ARRA; that increase subsequently expired and SNAP benefits are lower in 2014. Figure 6. Combined Cash Assistance and Food Assistance for a Family of Three with No Other Cash Income, July 1981, July 1996, and July 2013

Source: Congressional Research Service (CRS). Information for TANF cash assistance (2013) is based on data from the Urban Institute’s Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Information for AFDC cash assistance (1981 and 1996) is from the CRS survey of state AFDC financial eligibility and benefit amounts. SNAP food assistance benefits are based on information from the U.S. Department of Agriculture (USDA). Notes: Food assistance benefits were calculated based on the cash assistance amount in the median state for the selected years. SNAP benefit assumes that a household receives only the SNAP standard deduction, and no deductions for expenses allowed under SNAP law (high shelter costs, dependent care deductions). Constant dollars were computed using the Consumer Price Index for all Urban Consumers (CPI-U), not seasonally adjusted for July of selected years.

State Tables Table A-1. Maximum Monthly Earnings an Applicant Family Comprising a Single Parent Caring for Two Children May Have to Gain Eligibility for TANF Cash Assistance, July 2013

Maximum Earnings Maximum Earnings as a Percent of the Federal Poverty Level

Alabama $268 16.5%

Alaska 1,630 87.0%

Arizona 567 34.8%

Arkansas 278 17.1%

California 1,289 79.2%

Colorado 420 25.8%

Connecticut 1,013 62.2%

Delaware 427 26.2%

District of Columbia 587 36.1%

Florida 392 24.1%

Georgia 513 31.5%

Hawaii 1,740 92.9%

Idaho 631 38.8%

Illinois 813 50.0%

Indiana 377 23.2%

Iowa 1,061 65.2%

Kansas 518 31.8%

Kentucky 881 54.1%

Louisiana 359 22.1%

Maine 1,022 62.8%

Maryland 719 44.2%

Massachusetts 707 43.4%

Michigan 802 49.3%

Minnesota 1,053 64.7%

Mississippi 441 27.1%

Missouri 540 33.2%

Montana 817 50.2%

Nebraska 912 56.0%

Nevada 1,526 93.8%

New Hampshire 843 51.8%

New Jersey 635 39.0%

New Mexico 865 53.1%

New York 878 53.9%

North Carolina 681 41.8%

North Dakota 1,279 78.6%

Ohio 813 50.0%

Oklahoma 804 49.4%

Oregon 615 37.8%

Pennsylvania 703 43.2%

Rhode Island 1,258 77.3%

South Carolina 1,470 90.3%

South Dakota 805 49.5%

Tennessee 1,306 80.2%

Texas 401 24.6%

Utah 667 41.0%

Vermont 1,040 63.9%

Virginia 635 39.0%

Washington 936 57.5%

West Virginia 565 34.7%

Wisconsin 1,872 115.0%

Wyoming 806 49.5%

Source: Congressional Research Service (CRS) calculations based on inf

Temporary Assistance for Needy Families (TANF): Eligibility and Benefit Amounts in State TANF Cash Assistance Programs

December 30, 2014 (R43634)
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Introduction

The Temporary Assistance for Needy Families (TANF) block grant helps fund, among other benefits and services, state cash assistance programs to needy families with children.1 Cash assistance generally represents a benefit paid monthly to help meet a family's ongoing basic needs. Federal law prescribes the general eligible population for state cash assistance programs. For example, a family receiving assistance must have a dependent child. However, there are no federal rules defining what makes a family financially "needy" or determining what benefit amounts are paid. Financial need and benefit amounts are determined by the states.

Cash assistance programs for needy families were a major focus of the "welfare reform" debates that led to the enactment of the 1996 welfare reform law (the Personal Responsibility and Work Opportunity Reconciliation Act, P.L. 104-193). TANF, which was created in that law, has as its overarching purpose "to increase the flexibility of states" in operating programs to achieve its statutory goals. State TANF cash assistance programs vary greatly in their design, some of which is attributable to the flexibility afforded states in the 1996 law. Before the law, cash assistance for needy families with children was provided through the Aid to Families with Dependent Children (AFDC) program. Though TANF increased the flexibility of states in designing their cash assistance programs, states determined income eligibility thresholds and benefit amounts under AFDC as well.

This report describes state TANF financial eligibility rules and maximum benefit amounts. The information represents Congressional Research Service (CRS) calculations based on data from the Urban Institute's Welfare Rules Database.2 That information is supplemented by historical information on maximum AFDC benefits from a CRS survey of the states for selected years from 1981 to 1996.3

Family Circumstances and TANF Eligibility and Benefits

A family's circumstances determine whether it is eligible for TANF cash assistance and the amount of benefits it may receive. TANF cash assistance is a need-tested benefit (i.e., it is intended to pay benefits and reflect a family's financial need). The factors that affect family financial need include its size (larger families "need" more income to attain a specified standard of living), income, assets, and expenses. State rules for TANF cash assistance take into account those factors—which differ from family to family. State rules also often differ in terms of how different types of income and expenses are considered in determining financial eligibility and benefits for TANF cash assistance.

This report will use the rules of state TANF cash assistance programs to describe eligibility standards and benefit amounts. To simplify the descriptions of TANF cash assistance eligibility and benefits, most examples in this report will depict the rules that apply to a single mother caring for two children. Families that are headed by a recipient single parent have historically been the focus of much of cash assistance policy for needy families. However, the current TANF cash assistance caseload is diverse, with large shares of the caseload representing different family settings and benefits paid to the family only on behalf of a child.4 The descriptions in this report also assume that the family's sole source of other cash income is earnings. They will not take into account any expenses that might change TANF cash assistance amounts or eligibility, such as child care expenses.

TANF cash assistance income eligibility thresholds and benefit amounts vary greatly from state to state. To provide some context for the dollar amounts associated with income eligibility thresholds and benefit amounts, comparison will be made to the federal poverty level (FPL), which is uniform across the contiguous 48 states and the District of Columbia. (The federal poverty level is higher in Alaska and Hawaii.) For a single mother with two children in the 48 states and the District of Columbia, the 2013 federal poverty level was $19,530—or $1,628 per month.

Additionally, because there is a great deal of variation in income eligibility thresholds and benefit amounts among the states, this report will discuss the states with the highest and lowest eligibility threshold or benefit amount, as well as the amounts for the "median state." If states are ranked by their eligibility thresholds or benefit amounts from 1 to 51 (50 states and District of Columbia), with 1 being the lowest and 51 being the highest, the state that ranked 26th would be the "median state."

Eligibility for TANF Cash Assistance

Federal law limits TANF eligibility to needy families with a dependent child. It defines a dependent child as a person under the age of 18, or age 18 if a full-time student in secondary school. Individuals and couples without children are ineligible for TANF-funded cash assistance. Federal law also prohibits states from providing TANF-funded assistance to certain individuals in families with children.5 Aside from these rules, states have broad discretion in designing their cash assistance programs.

Income Eligibility Criteria for New Applicants

Federal law requires states to restrict TANF-funded cash assistance to "needy" families. Therefore, states must require that TANF families meet a test of financial need. However, there is no federal definition of need. States define the criteria for determining whether a family is financially needy and eligible for TANF cash assistance.

States typically limit entry to the cash assistance program to families with only a fraction of poverty-level income. Figure 1 shows, by state, the maximum monthly earnings a single parent with two children applying for TANF cash assistance may have and gain entry to the benefit rolls. The figure provides as a reference the monthly federal poverty level (with the higher levels for Alaska and Hawaii).

As shown on the figure, the maximum earnings thresholds for applicants in July 2013 were below the federal poverty level in all states except Wisconsin. In that state, it was technically possible for families with incomes as high as 115% of the FPL to be eligible for TANF, but the circumstances that would permit a working Wisconsin parent to receive TANF cash are limited.6 For the other contiguous 47 states and the District of Columbia, maximum earnings thresholds for a single mother caring for two children ranged from $1,526 per month in Nevada (94% of poverty-level income) to $268 per month in Alabama (17% of poverty-level income). The median state was Oklahoma, at $804 per month (about 49% of poverty-level income). In a majority of states (29 states and the District of Columbia), earnings of $814 per month—representing half of poverty-level income—disqualify a family of three from coming onto the assistance rolls.

Figure 1. Maximum Monthly Earnings An Applicant Family May Have and Be Eligible for TANF Cash Assistance: Single Parent Caring for Two Children, July 2013

Source: Congressional Research Service (CRS), based on data from the Urban Institute's Welfare Rules Database

Notes: Maximum earnings levels shown on the figure differ from those shown in the Urban Institute's Welfare Rules Databook for July 2013 for two reasons. First, the Databook showed the maximum earnings allowed to be "technically" eligible for assistance (sometimes used for Supplemental Nutrition Assistance Program (SNAP) benefits, rather than qualifying for a cash benefit). This figure shows the maximum earnings a family may have and still receive cash. In addition, the maximum earnings a family may have can vary within a state. For Connecticut, Pennsylvania, and Virginia, the Databook uses the eligibility and benefit schedules for a different sub-state region than does this figure. The information in this figure is also presented in tabular form in Table A-1.

Income Eligibility for Families Already on the Rolls

Many states provide financial incentives for those already on the rolls to gain employment. This is done by allowing recipients to retain eligibility and keep some of their TANF cash assistance while working through disregarding some earnings in the financial eligibility and benefit determination calculations. States have adopted very different forms of these "earnings disregards," with the effect being substantial variation among the states in whether and how much TANF cash assistance is provided to families with a working parent. Some states provide generous earnings disregards for only a short period of time (e.g., three months)—even disregarding all earnings and allowing families to keep all of their cash assistance for that period—providing the TANF cash assistance as only a short transitional earnings supplement. Other states provide for the same earnings disregard no matter how many months a recipient is working, supplementing earnings on an ongoing rather than a transitional basis.

Table A-2 in the Appendix shows maximum monthly earnings thresholds by state for both applicants and recipients.7 It shows that the maximum earnings thresholds are often higher for recipients than applicants. For example, applicant single parents with two children with earnings up to $814 per month (half of poverty-level income) are eligible for TANF cash assistance in 21 states. However, at that earnings level a recipient single parent with two children who gets a job may retain TANF eligibility in the first month on the job in 40 states and the District of Columbia, and even retain eligibility in the 13th month on the job in 31 states and the District of Columbia.

Asset Limits for New Applicant Financial Eligibility

Assets represent the value of liquid financial assets such as bank accounts and certain property. Federal law and regulations do not require states to administer an asset test to determine if a family is financially needy. Most states do require families applying for TANF cash assistance to both meet income eligibility criteria and have assets below a certain amount. However, in recent years a number of states have eliminated asset tests for eligibility and base financial eligibility on income alone.

Figure 2 categorizes states by their asset limit for new applicant families comprising a single parent with two children in July 2013. In that month, a total of seven states (Alabama, Colorado, Hawaii, Louisiana, Maryland, Ohio, and Virginia) had eliminated their asset limits entirely. The remaining states and the District of Columbia retained an asset test. The most common asset limit in July 2013 was $2,000, the amount in 18 states and the District of Columbia.

Figure 2. State TANF Cash Assistance Program Asset Limits for New Applicant Single Parents Caring for Two Children, July 2013

Source: Congressional Research Service (CRS), based on data from the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS).

In states with asset tests, the value of vehicles is either fully or partially disregarded. Table 1 categorizes states by their state TANF cash assistance program vehicle disregards for new applicant families in July 2013. A total of 18 states and the District of Columbia disregarded the value of all vehicles in determining financial eligibility (including the six states without asset limits). Another 18 states disregarded the full value of at least one vehicle.

The remaining 14 states disregarded a portion of the value of vehicles, which was determined at either their fair market values or equity values. Fair market value represents an estimate of what a vehicle could be sold for. Equity value represents its fair market value minus any outstanding loans that financed its purchase. The vehicle disregards varied from $4,600 in equity value (Tennessee) to $10,000 in fair market value (Minnesota) or $10,000 in equity value (Oregon and Wisconsin).

Table 1. State TANF Cash Assistance Program Vehicle Disregards from Asset Limits for New Applicant Families, July 2013

Disregard

States

All vehicles in the household (18 states and DC)

AL, CO, HI, LA, MD, OH, VA (states with no asset limits)

AK, AZ, DE, DC, KS, KY, MI, MS, NJ, NM, NC, UT

One vehicle per household (14 states)

AR, ID, IL, IA, ME, MO, MT, NE, NV, ND, PA, SD, WV, WY

One vehicle per adult (2 states)

RI, VT

One vehicle per licensed driver (2 states)

NH, SC

A portion of the value of vehicles (14 states)

TN: $4,600 in equity value

CA: $4,650 fair market value per licensed driver

GA: $4,650 in equity value

NY: Greater of $4,650 in fair market value or $9,300 in equity value

MA: $5,000 in fair market value or $10,000 in equity value

TX: $4,650 in equity value

IN, OK, WA: $5,000 in equity value

FL: $8,500 in equity value

CT: $9,500 in equity value

OR, WI: $10,000 in equity value

MN: $10,000 in fair market value

Source: Congressional Research Service (CRS), based on data from the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS).

Additionally, states usually do not count the value of a home toward their asset limits. Some states also exclude the value of certain other assets, such as restricted savings accounts (e.g., Individual Development Accounts (IDAs)).

TANF Maximum Cash Benefit Amounts

The TANF maximum cash benefit amount is generally what is paid to a family that has no other income and complies with program rules. Families that have additional sources of cash income, such as Social Security, receive a reduced benefit because some of their need is met by that other form of cash income. States have adopted a wide range of policies for determining benefits paid to families with earnings; though typically such families also receive a reduced benefit, particularly after they have been working a certain number of months. Additionally, families not in compliance with a state's TANF rules (e.g., work requirements) might be financially sanctioned, and thus receive a reduced benefit.

TANF maximum cash benefits generally vary by family size, on the presumption that larger families have greater financial need. Only Idaho and Wisconsin pay the same maximum benefit regardless of family size. This section will focus on maximum benefits for a family headed by a single parent caring for two children (family size of three). See Table A-4 in the Appendix for TANF maximum benefits for families headed by a single parent caring for one through five children.

State and Regional Variation in TANF Cash Assistance Maximums

There is a great deal of variation in maximum benefits by state. For a single parent caring for two children, the TANF cash assistance maximum monthly benefits ranged from a high of $923 in Alaska to a low of $170 in Mississippi in July 2013. The highest maximum monthly benefit outside of Alaska for such a family was in New York, $789 per month; the median jurisdiction maximum benefit was $428 per month in the District of Columbia.

In July 2013, all states paid monthly maximum benefits for a single parent caring for two children that were less than half of federal poverty-level income. New York's $789 per month represented 48.5% of the FPL. Alaska had a higher monthly FPL, $1,989 per month, for a family of three; its maximum benefit of $923 was 45.4% of the FPL.

Figure 3 provides a map showing the TANF maximum monthly cash assistance benefit by state in July 2013 for a single parent caring for two children. The map shows the states categorized by their maximum benefits. The categories themselves are based on benefits as a percent of monthly poverty-level income. For example, a state with a maximum benefit of less than $325 per month paid less than about 20% of poverty-level income for a family of three in 2013. The map shows that not only do benefits vary widely among the states, but there is a pronounced regional pattern in benefit amounts. States in the South paid the lowest benefits. States in the Northeast paid the highest benefits.

Figure 3. TANF Maximum Monthly Benefits for a Single Parent Caring for Two Children, by State, July 2013

Source: Congressional Research Service (CRS), based on data from the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS).

Notes: The map's shading categories are based on monthly benefits as a percent of the federal poverty level for the 48 states and District of Columbia. Under $325 per month was less than 20% of poverty-level income; $325 to $489 per month was 20% to 30% of poverty-level income; $490 to $649 per month was 30% to 40% of poverty-level income; and $650 per month or more was more than 40% of poverty-level income. The information in this map is also shown in tabular form in the Appendix, Table A-3.

Combined TANF Cash and SNAP Food Assistance

Families receiving TANF cash assistance are automatically financially eligible for food benefits from the Supplemental Nutrition Assistance Program (SNAP). Thus, a more complete picture of the benefits a TANF family might receive is the combined TANF cash and SNAP food benefit.

Figure 4 shows the combined TANF cash and SNAP food assistance benefit for a single parent caring for two children and no other cash income for July 2013. It shows that in all states, the combined TANF and SNAP benefits for such a family fall short of the federal poverty threshold. In New York, the combined TANF cash and SNAP benefit totaled $1,123, reflecting 69.0% of the FPL.

SNAP policy is generally predicated on households using 30% of their net income (after deductions for allowable expenses) for food.8 The SNAP benefits make up any deficit between what is needed to purchase a low-cost but nutritionally adequate diet and 30% of net income. A family's TANF cash benefit is counted in determining income for the purposes of SNAP. Thus, for a family with no income other than TANF, SNAP benefits are higher in states with lower TANF cash benefits, and lower in states with higher TANF cash benefits. Therefore, SNAP mitigates some of the differences in income produced by the variation in TANF cash benefits across the states. Though historically the SNAP benefit was thought of as a supplement to the TANF cash benefit, in July 2013 a family of three without any other income was eligible for a greater SNAP benefit than TANF cash benefit in 28 states and the District of Columbia.

It should be noted that in July 2013, the SNAP benefit was higher than usual because of a temporary SNAP benefit increase enacted in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5).9 That increase expired in November 2013, and monthly SNAP benefits were reduced by approximately 5.5% for a family of three.

Figure 4. Combined Monthly TANF Cash Assistance and SNAP Benefit, Single Parent Caring for Two Children and No Other Cash Income, July 2013

Source: Congressional Research Service (CRS) calculations based on data from the Urban Institutes Welfare Rules Database and the U.S. Department of Agriculture (USDA).

Notes: SNAP benefit assumes that a household receives only the SNAP standard deduction, and no deductions for expenses allowed under SNAP law (high shelter costs, dependent care deductions). The information in this figure is also shown in tabular form in Appendix, Table A-5.

Change in Benefits Over Time

The amount paid to a family under TANF is decided by states—there are no federal rules for how states determine the amount of TANF cash assistance. Before the 1996 welfare reform law, Aid to Families with Dependent Children (AFDC) paid cash assistance to needy families with children. States also determined the maximum amount of cash assistance paid to a family under AFDC.

Examining maximum cash assistance benefits for 1981 through 2013, AFDC and TANF cash assistance maximum benefits increased over time, but not enough to compensate for price increases.

AFDC and TANF Maximum Benefits

Figure 5 shows the maximum cash assistance benefit for a single parent caring for two children in the median state for selected years from 1981 to 2013. In 1981, the maximum monthly benefit in the median state was $305, an amount that increased to $428 by 2013. However, this increase was not enough to compensate for inflation over this period. In July 2013 dollars (past dollars adjusted to reflect what they could purchase in July 2013), the maximum cash assistance benefit for such a family declined from $778 in 1981 to $428 in 2013. This represents a decline in the purchasing power of the maximum benefit in the median state of 45% since 1981. A large share of that decline occurred under AFDC—before the enactment of the 1996 welfare reform law. From 1981 to 1996, the maximum AFDC cash benefit in the median state declined from $778 per month to $561 in 2013 dollars—a 28% reduction.

Figure 5. AFDC/TANF Maximum Benefits for a Family of Three in the Median State, July of Selected Years 1981-2013

In Nominal Dollars and in Constant July 2013 Dollars

Source: Congressional Research Service (CRS). Information for the TANF years (i.e., after 1996) is based on data from the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Information for AFDC (1996 and earlier years) is from the CRS survey of state AFDC financial eligibility and benefit amounts.

Notes: Constant dollars were computed using the Consumer Price Index for all Urban Consumers (CPI-U), not seasonally adjusted for July of selected years. State-by-state information on maximum benefit amounts for the selected years shown in this figure are shown in tabular form in the Table A-6 and Table A-7. Additionally, Table A-8 shows state-by-state maximum benefits for a single parent caring for two children for the selected years as a percent of the FPL.

Trends in Cash and Food Assistance

Unlike AFDC and TANF cash assistance, benefit amounts for SNAP food assistance (formerly called Food Stamps) are set in federal law, and generally have been adjusted over time for inflation. SNAP benefits are tied to the "Thrifty Food Plan," a market basket of foods to provide a low-cost, nutritionally adequate diet. Over time, Congress has periodically adjusted SNAP benefits to be higher (or slightly lower) than the Thrifty Food Plan. An ad-hoc increase in SNAP benefits was legislated in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5); that increase was effective April 1, 2009, and expired on October 31, 2013.

Over time, the decline in the value of AFDC and TANF cash benefits was partially compensated for by an increase in SNAP benefits. Just as SNAP pays higher benefits in states with lower TANF cash assistance benefits at a point in time, the erosion of the cash assistance benefit relative to inflation has resulted in higher SNAP benefits paid to families that receive cash assistance over time.

Figure 6 shows the combined AFDC or TANF cash assistance benefits and SNAP food assistance benefits for a single parent caring for two children with no other cash income in the median state for July 1981, July 1996, and July 2013 in constant July 2013 dollars. Over this period, the value of the combined benefit declined by 19%. Additionally, the food assistance portion of the benefit increased as a share of the combined benefit—to the point where the SNAP benefit was greater than the TANF cash benefit in the median state in July 2013. The July 2013 SNAP benefit includes the increase in ARRA; that increase subsequently expired and SNAP benefits are lower in 2014.

Figure 6. Combined Cash Assistance and Food Assistance for a Family of Three with No Other Cash Income, July 1981, July 1996, and July 2013

Source: Congressional Research Service (CRS). Information for TANF cash assistance (2013) is based on data from the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Information for AFDC cash assistance (1981 and 1996) is from the CRS survey of state AFDC financial eligibility and benefit amounts. SNAP food assistance benefits are based on information from the U.S. Department of Agriculture (USDA).

Notes: Food assistance benefits were calculated based on the cash assistance amount in the median state for the selected years. SNAP benefit assumes that a household receives only the SNAP standard deduction, and no deductions for expenses allowed under SNAP law (high shelter costs, dependent care deductions). Constant dollars were computed using the Consumer Price Index for all Urban Consumers (CPI-U), not seasonally adjusted for July of selected years.

State Tables

Table A-1. Maximum Monthly Earnings an Applicant Family Comprising a Single Parent Caring for Two Children May Have to Gain Eligibility for TANF Cash Assistance, July 2013

 

Maximum Earnings

Maximum Earnings as a Percent of the Federal Poverty Level

Alabama

$268

16.5%

Alaska

1,630

87.0%

Arizona

567

34.8%

Arkansas

278

17.1%

California

1,289

79.2%

Colorado

420

25.8%

Connecticut

1,013

62.2%

Delaware

427

26.2%

District of Columbia

587

36.1%

Florida

392

24.1%

Georgia

513

31.5%

Hawaii

1,740

92.9%

Idaho

631

38.8%

Illinois

813

50.0%

Indiana

377

23.2%

Iowa

1,061

65.2%

Kansas

518

31.8%

Kentucky

881

54.1%

Louisiana

359

22.1%

Maine

1,022

62.8%

Maryland

719

44.2%

Massachusetts

707

43.4%

Michigan

802

49.3%

Minnesota

1,053

64.7%

Mississippi

441

27.1%

Missouri

540

33.2%

Montana

817

50.2%

Nebraska

912

56.0%

Nevada

1,526

93.8%

New Hampshire

843

51.8%

New Jersey

635

39.0%

New Mexico

865

53.1%

New York

878

53.9%

North Carolina

681

41.8%

North Dakota

1,279

78.6%

Ohio

813

50.0%

Oklahoma

804

49.4%

Oregon

615

37.8%

Pennsylvania

703

43.2%

Rhode Island

1,258

77.3%

South Carolina

1,470

90.3%

South Dakota

805

49.5%

Tennessee

1,306

80.2%

Texas

401

24.6%

Utah

667

41.0%

Vermont

1,040

63.9%

Virginia

635

39.0%

Washington

936

57.5%

West Virginia

565

34.7%

Wisconsin

1,872

115.0%

Wyoming

806

49.5%

Source: Congressional Research Service (CRS) calculations based on information in the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS).

Table A-2. Maximum Monthly Earnings a Single Parent Caring for Two Children May Have for Applicants or for Recipients to Retain Eligibility for TANF Cash Assistance, July 2013

For Recipients, Eligibility is Based on Number of Months on the Job

 

 

Recipients, by Months on the Job

 

Applicant

First

Fourth

13th

Alabama

$268

No Limit

No Limit

$256

Alaska

1,630

$2,425

$2,425

2,182

Arizona

567

567

567

567

Arkansas

278

696

696

696

California

1,289

1,368

1,368

1,368

Colorado

420

1,357

1,357

420

Connecticut

1,013

1,627

1,627

1,627

Delaware

427

1,872

1,872

1,264

District of Columbia

587

1,415

1,415

1,415

Florida

392

786

786

786

Georgia

513

740

740

504

Hawaii

1,740

1,916

1,916

1,916

Idaho

631

631

631

631

Illinois

813

1,724

1,724

1,724

Indiana

377

1,112

1,112

1,112

Iowa

1,061

1,238

1,238

1,238

Kansas

518

1,137

1,137

1,137

Kentucky

881

No Limit

881

627

Louisiana

359

1,250

1,250

350

Maine

1,022

1,022

1,022

1,022

Maryland

719

943

943

943

Massachusetts

707

1,143

1,143

1,143

Michigan

802

1,164

1,164

1,164

Minnesota

1,053

1,053

1,053

1,053

Mississippi

441

No Limit

No Limit

441

Missouri

540

1,117

1,117

372

Montana

817

817

817

817

Nebraska

912

912

912

912

Nevada

1,526

No Limit

2,116

466

New Hampshire

843

1,330

1,330

1,330

New Jersey

635

No Limit

1,692

846

New Mexico

865

865

865

865

New York

878

1,459

1,459

1,459

North Carolina

681

No Limit

681

681

North Dakota

1,279

1,279

1,279

852

Ohio

813

1,146

1,146

1,146

Oklahoma

804

804

804

804

Oregon

615

615

615

615

Pennsylvania

703

822

822

822

Rhode Island

1,258

1,258

1,258

1,258

South Carolina

1,470

1,470

1,470

859

South Dakota

805

805

805

805

Tennessee

1,306

1,306

1,306

1,306

Texas

401

1,707

1,707

307

Utah

667

1,050

1,050

1,050

Vermont

1,040

1,040

1,040

1,040

Virginia

635

1,627

1,627

1,627

Washington

936

936

936

936

West Virginia

565

565

565

565

Wisconsin

1,872

1,872

1,872

1,872

Wyoming

806

806

806

806

Source: Congressional Research Service (CRS) calculations based on information in the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS).

Notes: "No Limit" represents months where 100% of earnings are disregarded.

Table A-3. Maximum Monthly TANF Cash Assistance Benefit for a Single Parent Caring for Two Children, July 2013

Benefit Amounts and Benefit as a Percent of the 2013 Poverty Guidelines

 

Maximum Benefit

Maximum Benefit as a Percent of the 2013 Poverty Guidelines

Alabama

$215

13.2%

Alaska

923

45.4

Arizona

277

17.0

Arkansas

204

12.5

California

638

39.2

Colorado

462

28.4

Connecticut

674

41.4

Delaware

338

20.8

District of Columbia

428

26.3

Florida

303

18.6

Georgia

280

17.2

Hawaii

610

32.6

Idaho

309

19.0

Illinois

432

26.5

Indiana

288

17.7

Iowa

426

26.2

Kansas

429

26.4

Kentucky

262

16.1

Louisiana

240

14.7

Maine

485

29.8

Maryland

576

35.4

Massachusetts

618

38.0

Michigan

492

30.2

Minnesota

532

32.7

Mississippi

170

10.4

Missouri

292

17.9

Montana

510

31.3

Nebraska

364

22.4

Nevada

383

23.5

New Hampshire

675

41.5

New Jersey

424

26.1

New Mexico

380

23.3

New York

789

48.5

North Carolina

272

16.7

North Dakota

477

29.3

Ohio

458

28.1

Oklahoma

292

17.9

Oregon

506

31.1

Pennsylvania

421

25.9

Rhode Island

554

34.0

South Carolina

223

13.7

South Dakota

582

35.8

Tennessee

185

11.4

Texas

271

16.7

Utah

498

30.6

Vermont

640

39.3

Virginia

389

23.9

Washington

478

29.4

West Virginia

340

20.9

Wisconsin

653

40.1

Wyoming

616

37.8

Source: Congressional Research Service (CRS) calculations based on information in the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS).

Table A-4. Maximum Monthly TANF Cash Assistance Benefits Paid to a Family Headed by a Single Parent, By Family Size, July 2013

State

One

Two

Three

Four

Five

Alabama

$190

$215

$245

$275

$305

Alaska

821

923

1,025

1,127

1,229

Arizona

220

277

334

392

448

Arkansas

162

204

247

286

331

California

516

638

762

866

972

Colorado

364

462

561

665

767

Connecticut

544

674

786

886

992

Delaware

270

338

407

475

544

District of Columbia

336

428

523

602

708

Florida

241

303

364

426

487

Georgia

235

280

330

378

410

Hawaii

485

610

735

860

985

Idaho

309

309

309

309

309

Illinois

318

432

474

555

623

Indiana

230

288

346

405

464

Iowa

361

426

495

548

610

Kansas

352

429

497

558

619

Kentucky

225

262

325

361

398

Louisiana

188

240

284

327

366

Maine

363

485

611

733

856

Maryland

455

576

697

808

888

Massachusetts

518

618

713

812

912

Michigan

403

492

597

694

828

Minnesota

437

532

621

697

773

Mississippi

146

170

194

218

242

Missouri

234

292

342

388

431

Montana

405

510

615

720

825

Nebraska

293

364

435

506

577

Nevada

318

383

448

513

578

New Hampshire

606

675

738

798

879

New Jersey

322

424

488

552

616

New Mexico

304

380

459

536

613

New York

574

789

952

1,120

1,238

North Carolina

236

272

297

324

349

North Dakota

378

477

573

670

767

Ohio

374

458

564

661

735

Oklahoma

225

292

361

422

483

Oregon

432

506

621

721

833

Pennsylvania

330

421

514

607

687

Rhode Island

449

554

634

714

794

South Carolina

177

223

269

316

362

South Dakota

520

582

643

703

765

Tennessee

142

185

226

264

305

Texas

235

271

326

362

416

Utah

399

498

583

663

731

Vermont

536

640

726

817

879

Virginia

323

389

451

537

570

Washington

385

478

562

648

736

West Virginia

301

340

384

420

460

Wisconsin

653

653

653

653

653

Wyoming

580

616

616

653

653

Source: Congressional Research Service (CRS) calculations based on information in the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS).

Table A-5. Maximum Combined TANF and SNAP Benefit for a Single Parent Caring for Two Children, July 2013

Benefit Amounts as a Percent of the 2013 Federal Poverty Level (FPL)

 

 

 

 

Benefits as a Percent of 2013 FPL

 

TANF

SNAP

Combined Benefit

TANF

SNAP

Combined Benefit

Alabama

$215

$506

$721

13.2%

31.1%

44.3%

Alaska

923

426

1,349

45.4

20.9

66.3

Arizona

277

487

764

17.0

29.9

46.9

Arkansas

204

509

713

12.5

31.3

43.8

California

638

379

1,017

39.2

23.3

62.5

Colorado

462

432

894

28.4

26.5

54.9

Connecticut

674

368

1,042

41.4

22.6

64.0

Delaware

338

469

807

20.8

28.8

49.6

District of Columbia

428

442

870

26.3

27.2

53.5

Florida

303

479

782

18.6

29.4

48.0

Georgia

280

486

766

17.2

29.9

47.1

Hawaii

610

719

1,329

32.6

38.4

71.0

Idaho

309

478

787

19.0

29.4

48.4

Illinois

432

441

873

26.5

27.1

53.6

Indiana

288

484

772

17.7

29.7

47.4

Iowa

426

442

868

26.2

27.2

53.3

Kansas

429

442

871

26.4

27.2

53.5

Kentucky

262

492

754

16.1

30.2

46.3

Louisiana

240

498

738

14.7

30.6

45.3

Maine

485

425

910

29.8

26.1

55.9

Maryland

576

397

973

35.4

24.4

59.8

Massachusetts

618

385

1,003

38.0

23.7

61.6

Michigan

492

423

915

30.2

26.0

56.2

Minnesota

532

411

943

32.7

25.3

57.9

Mississippi

170

519

689

10.4

31.9

42.3

Missouri

292

483

775

17.9

29.7

47.6

Montana

510

417

927

31.3

25.6

57.0

Nebraska

364

461

825

22.4

28.3

50.7

Nevada

383

455

838

23.5

28.0

51.5

New Hampshire

675

368

1,043

41.5

22.6

64.1

New Jersey

424

443

867

26.1

27.2

53.3

New Mexico

380

456

836

23.3

28.0

51.4

New York

789

334

1,123

48.5

20.5

69.0

North Carolina

272

489

761

16.7

30.0

46.8

North Dakota

477

427

904

29.3

26.2

55.5

Ohio

458

433

891

28.1

26.6

54.7

Oklahoma

292

483

775

17.9

29.7

47.6

Oregon

506

418

924

31.1

25.7

56.8

Pennsylvania

421

444

865

25.9

27.3

53.1

Rhode Island

554

404

958

34.0

24.8

58.9

South Carolina

223

503

726

13.7

30.9

44.6

South Dakota

582

396

978

35.8

24.3

60.1

Tennessee

185

515

700

11.4

31.6

43.0

Texas

271

489

760

16.7

30.0

46.7

Utah

498

421

919

30.6

25.9

56.5

Vermont

640

378

1,018

39.3

23.2

62.5

Virginia

389

454

843

23.9

27.9

51.8

Washington

478

427

905

29.4

26.2

55.6

West Virginia

340

468

808

20.9

28.8

49.6

Wisconsin

653

374

1,027

40.1

23.0

63.1

Wyoming

616

385

1,001

37.8

23.7

61.5

Source: Congressional Research Service (CRS) calculations based on information in the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS); and from the U.S. Department of Agriculture, Food and Nutrition Service.

Notes: SNAP benefits are computed based on the TANF household taking only the standard deduction in determining countable income.

Table A-6. Maximum Monthly AFDC/TANF Cash Assistance Benefits for a Single Parent Caring for Two Children, July of Selected Years, 1981-2013

State

1981

1990

1996

2000

2007

2010

2013

Alabama

$118

$118

$164

$164

$215

$215

$215

Alaska

571

846

923

923

923

923

923

Arizona

202

293

347

347

347

277

277

Arkansas

161

204

204

204

204

204

204

California

506

694

596

626

750

694

638

Colorado

379

356

356

356

356

462

462

Connecticut

498

680

636

636

656

656

674

Delaware

266

333

338

338

338

416

338

District of Columbia

286

409

415

379

407

428

428

Florida

195

294

303

303

303

303

303

Georgia

183

273

280

280

280

280

280

Hawaii

468

632

712

570

570

610

610

Idaho

305

317

317

293

309

309

309

Illinois

302

367

377

377

396

432

432

Indiana

255

288

288

288

288

288

288

Iowa

360

426

426

426

426

426

426

Kansas

353

409

429

429

429

429

429

Kentucky

188

228

262

262

262

262

262

Louisiana

173

190

190

240

240

240

240

Maine

301

453

418

461

485

485

485

Maryland

270

406

373

417

549

574

576

Massachusetts

379

539

565

618

618

618

618

Michigan

397

442

459

459

489

492

492

Minnesota

446

532

532

532

532

532

532

Mississippi

96

120

120

170

170

170

170

Missouri

248

292

292

292

292

292

292

Montana

259

370

438

477

375

504

510

Nebraska

350

364

364

364

364

364

364

Nevada

241

330

348

348

383

383

383

New Hampshire

326

506

550

600

625

675

675

New Jersey

360

424

424

424

424

424

424

New Mexico

220

310

389

439

389

447

380

New York

429

577

577

577

691

753

789

North Carolina

192

272

272

272

272

272

272

North Dakota

334

401

431

457

477

427

477

Ohio

263

334

341

373

410

434

458

Oklahoma

282

325

307

292

292

292

292

Oregon

321

444

460

460

471

485

506

Pennsylvania

332

421

421

421

421

421

421

Rhode Island

367

543

554

554

554

554

554

South Carolina

129

206

200

205

240

270

223

South Dakota

321

385

430

430

508

555

582

Tennessee

122

195

185

185

185

185

185

Texas

118

184

188

201

236

260

271

Utah

348

387

426

451

474

498

498

Vermont

476

630

597

622

640

640

640

Virginia

310

354

354

389

389

389

389

Washington

415

501

546

546

546

562

478

West Virginia

206

249

253

353

340

340

340

Wisconsin

444

517

517

673

673

673

653

Wyoming

315

360

360

340

340

561

616

 

 

 

 

 

 

 

 

Median

305

367

377

389

396

428

428

Source: Congressional Research Service (CRS). Information for the TANF years (after 1996) is based on data in the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Information for AFDC (1996 and earlier years) is from the CRS survey of state AFDC financial eligibility and benefit amounts.

Table A-7. Maximum Monthly AFDC/TANF Cash Assistance Benefit for a Single Parent Caring for Two Children, for Selected Years, 1981-2013, in Constant July 2013 Dollars

State

1981

1990

1996

2000

2007

2010

2013

Alabama

$301

$211

$244

$222

$241

$230

$215

Alaska

1,456

1,516

1,373

1,248

1,035

989

923

Arizona

515

525

516

469

389

297

277

Arkansas

411

365

304

276

229

219

204

California

1,290

1,243

887

846

841

744

638

Colorado

967

638

530

481

399

495

462

Connecticut

1,270

1,218

946

860

736

703

674

Delaware

678

597

503

457

379

446

338

District of Columbia

729

733

617

512

456

459

428

Florida

497

527

451

410

340

325

303

Georgia

467

489

417

379

314

300

280

Hawaii

1,193

1,132

1,059

771

639

654

610

Idaho

778

568

472

396

347

331

309

Illinois

770

657

561

510

444

463

432

Indiana

650

516

429

389

323

309

288

Iowa

918

763

634

576

478

456

426

Kansas

900

733

638

580

481

460

429

Kentucky

479

408

390

354

294

281

262

Louisiana

441

340

283

324

269

257

240

Maine

768

811

622

623

544

520

485

Maryland

689

727

555

564

616

615

576

Massachusetts

967

966

841

835

693

662

618

Michigan

1,012

792

683

620

548

527

492

Minnesota

1,137

953

792

719

597

570

532

Mississippi

245

215

179

230

191

182

170

Missouri

632

523

434

395

327

313

292

Montana

660

663

652

645

421

540

510

Nebraska

893

652

542

492

408

390

364

Nevada

615

591

518

470

430

410

383

New Hampshire

831

906

818

811

701

723

675

New Jersey

918

760

631

573

475

454

424

New Mexico

561

555

579

593

436

479

380

New York

1,094

1,034

859

780

775

807

789

North Carolina

490

487

405

368

305

291

272

North Dakota

852

718

641

618

535

458

477

Ohio

671

598

507

504

460

465

458

Oklahoma

719

582

457

395

327

313

292

Oregon

819

795

684

622

528

520

506

Pennsylvania

847

754

626

569

472

451

421

Rhode Island

936

973

824

749

621

594

554

South Carolina

329

369

298

277

269

289

223

South Dakota

819

690

640

581

570

595

582

Tennessee

311

349

275

250

207

198

185

Texas

301

330

280

272

265

279

271

Utah

887

693

634

610

532

534

498

Vermont

1,214

1,129

888

841

718

686

640

Virginia

791

634

527

526

436

417

389

Washington

1,058

897

812

738

612

602

478

West Virginia

525

446

376

477

381

364

340

Wisconsin

1,132

926

769

910

755

721

653

Wyoming

803

645

536

460

381

601

616

 

 

 

 

 

 

 

 

Median

778

657

561

526

444

459

428

Source: Congressional Research Service (CRS). Information for the TANF years (after 1996) is based on data in the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Information for AFDC (1996 and earlier years) is from the CRS survey of state AFDC financial eligibility and benefit amounts.

Notes: July 2013 constant dollars were computed using the Consumer Price Index for all Urban Consumers (CPI-U), not seasonally adjusted data.

Table A-8. Maximum Monthly AFDC/TANF Cash Assistance Benefit for a Single Parent Caring for Two Children, as a Percent of the Federal Poverty Level, July of Selected Years, 1981-2013

State

1981

1990

1996

2000

2007

2010

2013

Alabama

20.0%

13.4%

15.2%

13.9%

15.0%

14.1%

13.2%

Alaska

77.4

76.9

68.3

62.6

51.6

48.4

45.4

Arizona

34.3

33.3

32.1

29.4

24.3

18.2

17.0

Arkansas

27.3

23.2

18.9

17.3

14.3

13.4

12.5

California

85.9

78.9

55.1

53.1

52.4

45.5

39.2

Colorado

64.3

40.5

32.9

30.2

24.9

30.3

28.4

Connecticut

84.5

77.3

58.8

53.9

45.8

43.0

41.4

Delaware

45.1

37.8

31.2

28.7

23.6

27.3

20.8

District of Columbia

48.5

46.5

38.4

32.1

28.4

28.1

26.3

Florida

33.1

33.4

28.0

25.7

21.2

19.9

18.6

Georgia

31.1

31.0

25.9

23.7

19.6

18.4

17.2

Hawaii

69.0

62.4

57.2

42.0

34.6

34.8

32.6

Idaho

51.8

36.0

29.3

24.8

21.6

20.3

19.0

Illinois

51.3

41.7

34.9

32.0

27.7

28.3

26.5

Indiana

43.3

32.7

26.6

24.4

20.1

18.9

17.7

Iowa

61.1

48.4

39.4

36.1

29.8

27.9

26.2

Kansas

59.9

46.5

39.7

36.4

30.0

28.1

26.4

Kentucky

31.9

25.9

24.2

22.2

18.3

17.2

16.1

Louisiana

29.4

21.6

17.6

20.4

16.8

15.7

14.7

Maine

51.1

51.5

38.6

39.1

33.9

31.8

29.8

Maryland

45.8

46.1

34.5

35.4

38.4

37.6

35.4

Massachusetts

64.3

61.3

52.2

52.4

43.2

40.5

38.0

Michigan

67.4

50.2

42.4

38.9

34.2

32.2

30.2

Minnesota

75.7

60.5

49.2

45.1

37.2

34.9

32.7

Mississippi

16.3

13.6

11.1

14.4

11.9

11.1

10.4

Missouri

42.1

33.2

27.0

24.8

20.4

19.1

17.9

Montana

44.0

42.0

40.5

40.5

26.2

33.0

31.3

Nebraska

59.4

41.4

33.7

30.9

25.4

23.9

22.4

Nevada

40.9

37.5

32.2

29.5

26.8

25.1

23.5

New Hampshire

55.3

57.5

50.8

50.9

43.7

44.2

41.5

New Jersey

61.1

48.2

39.2

36.0

29.6

27.8

26.1

New Mexico

37.3

35.2

36.0

37.2

27.2

29.3

23.3

New York

72.8

65.6

53.3

48.9

48.3

49.4

48.5

North Carolina

32.6

30.9

25.1

23.1

19.0

17.8

16.7

North Dakota

56.7

45.6

39.8

38.8

33.3

28.0

29.3

Ohio

44.6

38.0

31.5

31.6

28.7

28.4

28.1

Oklahoma

47.9

36.9

28.4

24.8

20.4

19.1

17.9

Oregon

54.5

50.5

42.5

39.0

32.9

31.8

31.1

Pennsylvania

56.4

47.8

38.9

35.7

29.4

27.6

25.9

Rhode Island

62.3

61.7

51.2

47.0

38.7

36.3

34.0

South Carolina

21.9

23.4

18.5

17.4

16.8

17.7

13.7

South Dakota

54.5

43.8

39.8

36.5

35.5

36.4

35.8

Tennessee

20.7

22.2

17.1

15.7

12.9

12.1

11.4

Texas

20.0

20.9

17.4

17.0

16.5

17.0

16.7

Utah

59.1

44.0

39.4

38.2

33.1

32.6

30.6

Vermont

80.8

71.6

55.2

52.7

44.7

41.9

39.3

Virginia

52.6

40.2

32.7

33.0

27.2

25.5

23.9

Washington

70.4

56.9

50.5

46.3

38.2

36.8

29.4

West Virginia

35.0

28.3

23.4

29.9

23.8

22.3

20.9

Wisconsin

75.4

58.8

47.8

57.1

47.0

44.1

40.1

Wyoming

53.5

40.9

33.3

28.8

23.8

36.8

37.8

 

 

 

 

 

 

 

 

Median

51.8

41.7

34.9

33.0

27.7

28.1

26.3

Source: Congressional Research Service (CRS). Information for the TANF years (after 1996) is based on data in the Urban Institute's Welfare Rules Database, funded by the U.S. Department of Health and Human Services (HHS). Information for AFDC (1996 and earlier years) is from the CRS survey of state AFDC financial eligibility and benefit amounts.

Author Contact Information

[author name scrubbed], Specialist in Social Policy ([email address scrubbed], [phone number scrubbed])

Acknowledgments

CRS Graphics Specialist Amber Wilhelm created the figures in this report.

Footnotes

1.

For an overview of benefits and services funded by TANF, see CRS Report R40946, The Temporary Assistance for Needy Families Block Grant: An Overview, by [author name scrubbed].

2.

The Urban Institute's Welfare Rules Database provides detailed rules on state TANF cash assistance programs. It currently contains information on these rules from 1996 (as they existed under the pre-TANF AFDC program) to 2013. The database is currently funded by the Department of Health and Human Services (HHS). For a description of the database, see the Urban Institute website. HHS has annually published summary information from the database. See Erika Huber, David Kassabian, and Elissa Cohen, Welfare Rules Databook: State TANF Policies as of July 2013, Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services, OPRE Report 2014-52, September 2014.

3.

Some of the information in this report differs from that published in the Welfare Rules Databook cited above. Some states pay different benefits in different regions within the state. The Welfare Rules Databook provides income eligibility and benefit thresholds for the region that has the most recipient families. However, to maintain consistency with information collected in the earlier CRS survey of the states, a different region of the state (the one with the highest benefit levels) is reported for Connecticut, Pennsylvania, and Virginia in this CRS report.

4.

For example, TANF cash assistance "child-only" families include those with adults who are parents receiving Supplemental Security Income (SSI); noncitizen, nonrecipient parents; and nonparent relative caregivers. See CRS Report R43187, Temporary Assistance for Needy Families (TANF): Size and Characteristics of the Cash Assistance Caseload, by [author name scrubbed]. The Urban Institute's Welfare Rules Databook, cited above, includes detail on the rules that apply to these families receiving cash assistance.

5.

Federal law prohibits states from using federal TANF funds to provide cash assistance to (1) families with an adult who has received assistance for 60 months (the five-year time limit); (2) teen parents not living in a supervised setting; (3) married teen parents or teen heads of households (with a child 13 weeks or older) who are not in high school or alternative education or training; (4) families that have not legally assigned their right (turned over rights) to child support to the state paid on behalf of children receiving assistance; (5) felons and parole violators; (6) those who misrepresented their residence to receive benefits; and (7) certain noncitizens. In many of these cases, states may use state funds countable toward the TANF maintenance of effort (MOE) state spending requirement to aid such families.

6.

A low-income parent working under 30 hours per week may participate in a community service job if he or she has barriers to employment that preclude full-time work. That community service job would be part-time, with benefits prorated based on the number of hours of participation in the job.

7.

The rules are described in the Welfare Rules Databook, cited above. See Table I.E.2, p. 88, for a description of the earned income disregards used for income eligibility. See Table II.A.1, p. 104, for a description of the earned income disregards used for computing benefits.

8.

See CRS Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer on Eligibility and Benefits, by [author name scrubbed].

9.

CRS Report R43257, Background on the Scheduled Reduction to Supplemental Nutrition Assistance Program (SNAP) Benefits, by [author name scrubbed] and [author name scrubbed].