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1 1 (December 04, 2020)

handle is hein.crs/govdcsw0001 and id is 1 raw text is: Congressional Research Servik COVID-19: The Potential Role of TANF in Addressing the Economic Effects Updated December 4, 2020 The Temporary Assistance for Needy Families (TANF) block grant provides grants to the 50 states, District of Columbia, American Indian tribes, and certain territories with the broad purpose of ameliorating and addressing root causes of childhood economic disadvantage. States may use TANF funds in any way they reasonably calculate could achieve the block grant's statutory purpose. Some of the flexibility the block grant affords to states, tribes, and territories was used to address the fallout from Hurricane Katrina and the deep economic recession of 2007-2009. Overview of TANF TANF was created by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA, P.L. 104-193) and is best known as funding for state programs that provide monthly assistance to needy families with children. TANF assistance is need-tested, and eligibility levels and benefit amounts are determined by the states and vary by state. The number of famiies receiving TANF assistance increased by 4.4% from December 2019 to June 2020 (the latest available data). It is estimated that the expiration of temporary relief measures (e.g., enhanced unemployment insurance) since June resulted in further increases in the number of families eligible for TANF assistance and other forms of need-tested aid. PRWORA placed work requirements on states and time limits on families that receive TANF assistance. In addition to assistance, TANF funds a wide range of benefits and services. TANF non-recurent short- term benefits are defined as aid that addresses a specific episode of need and does not exceed four months. The receipt of a nonrecurrent short-term benefit does not count toward a family's time limit, nor other requirements such as those related to work, assigning child support to the state, and state reporting of detailed characteristics. In crafting a response to Hurricane Katrina in 2005, Congress enacted special temporary rules to permit states to tap an existing fund to pay nonrecurrent short-term benefits to families evacuated from their homes because of Hurricane Katrina. In terms of addressing unemployment related to a recession, TANF can also fund employment services and subsidized employment. If an individual is in subsidized employment, the requirements of assistance (e.g., time limits) also do not count. Congressional Research Service https://crsreports.congress.gov IN11241 CRS NSIGHT Prepared for Membersand Commi ----es o Cong rss----------------------------------

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