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                                                                                         Updated July 20,2020

The Temporary Assistance for Needy Families (TANF)

Block Grant


The Temporary Assistance for Needy Families (TANF)
blockgrant was createdin the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (PRWORA,
P.L. 104-193). That law was the culmination ofa series of
legislative changes that altered the rules for providing
benefits and services to needy families with children.


Public cash assistance to needy families with children has
its origin in the early 1900s state and locally financed
mother's pension programs that aided single mothers
(often widows) so that children could be raisedin their own
homes rather than institutionalized. The Social Security Act
of 1935 provided federal funding for these programs with
the explicit goal to aid mothers so they would not have to
work and could stayhome to raise their children.
Post-1935 changes altered the context in which programs
for needy families with children operated. In 1939,
survivors' benefits were addedto Social Security, providing
socialinsurance benefits to widows andtheir children. The
increase in labor force participation among married mothes
altered views about whether government should aid single
mothers to stay at home. Families with children whose
fathers were alive but absent comprised more of the public
cash assistancecaseload. The caseload also became more
nonwhite. Cash assistance to needy families with children
becane among the most controversialofsocialprograms,
particularly beginning in the late 1960s as the cash
as sistance caseloadhad its first large increase. Proposals to
replace or reform cash assistance for needy families were
debated across four decades, ultimately leading to the
enactment ofPRWORA.

T h AN F       BIcxGran,.
The TANF blockgrant's overallpurpose is to increase the
flexibility of statesto meet four statutorygoals:
(1) provide assistance to needy families so thatchildren
may remain in their homes; (2) reduce dependency of needy
parents on government benefits through work, job
preparation, and marriage; (3) reduce out-of-wedlock
pregnancies; and (4) promote the formation and
maintenance of two-parent families. PRWORA and the
creation of TANF altered the federalrules that applied to
states for their cash assistance programs. It also es tablished
a broad-purpose blockgrant that provides funds to states to
address both the effects and rootcauses ofchildhood
economic dis advantage.


TANF provides grants to the 50s tates, District of
Columbia, Puerto Rico, Guam, and the Virgin Islands.
American Indian tribes may also operate their own TANF


programs with federaldollars. ThebulkofTANFfundingis
in a basic blockgrant of $16.5 billion per year. Every year,
each state receives a fixed grant based on how lmuch it
received in federal funding in the pre-1996 cash assistance
and related programs during the early- and mid-1990s.
Tribes also may receive grants based on mid-1990s
expenditures.
The TANF block grant has not been increased since the
enactment of the 1996 welfare law. There has beenno
adjustment for inflation or population change. From 1997 to
2019, TANFhas lost 37% of its value to inflation. During
TANF's history, states haveat times receivedTANF funds
in addition to thebasic blockgrant. For FY2020, the only
additional funding to states for TANF is through the TANF
contingency fund.
In addition to federal funding, states are required to expend
a mininum amount of their own funds on the TANF-rehted
population and TANF-related programs (a total minimrum
of $10.3 billion per year.) This amount is alsobasedon
historical expenditures in pre-TANF programs and is
known as the maintenance ofeffort (MOE) requirement.
Some states spend more than the minimrum.

States may use federalblockgrant and MOEfunds in any
mannerthat is reasonably calculated to achieve TANF's
statutory purpose and goals. States have used TANF funds
for a wide range of benefits and services. In FY2018, a total
of $31.3 billion was spent by states fromfederalTANF and
state MOEfunds. TANF assistance, including monthly cash
benefits to families with children, totaled $6.7 billion. In
addition to assistance, TANF contributes to state funds used
for work and training programs, child care, pre-
kindergarten programs, programs to provide services to
children who havebeen abused and neglected or are at risk
of it, and other services (youth activities, responsible
fatherhood and healthy marriage promotion).

Figure I. Uses of Federal TANF and State MOE
Funds, by Category: FY2018
            is   c Astsate                   k $6,7b
            Osildcar- ....        .3.
         Workprogram . .. .       $3.33
    Pefundab.e tax cred's      $2.83
       pr-KHead Start          Q. - (2D L   Total:
     n jd           .................... . 4 ,$3 1.3
             rR  es           $2.8          Billion
         Adrqn sratle h      $2.2
     Short-Term n,-n . , ....  $146
         Ot h eer Ssvice s             S4L6P

Source: Congressional Research Service (CRS), based on datafrom
the Department of Health and Human Services (HHS)


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