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1 1 (January 28, 2021)

handle is hein.crs/govebst0001 and id is 1 raw text is: 11 9 Updated January 28, 2021 The Temporary Assistance for Needy Families (TANF) Block Grant Introduction The Temporary Assistance for Needy Families (TANF) block grant was created in the PersonalResponsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA, P.L. 104-193). That law was the culmination of a series of legislative changes that altered the rules for providing benefits and services to needy families with children. Brief History 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 goalto aid mothers so they would not have to work and could stayhome to raise theirchildren. Post-1935 changes altered the context in which programs for needy families with children operated. In 1939, survivors' benefits were added to Social Security, providing socialinsurance benefits to widows andtheirchildren. The increase in labor force participation among married motheis 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 assistance caseload. The caselo ad also became more nonwhite. Cash assistance to needy families with children became among the most controversialofsocialprograms, particularly beginning in the late 1960s as the cash assistance caseloadhadits first large increase. Proposals to replace or reform cash assistance for needy families were debated across four decades, ultimately leading to the enactment of PRWORA. The TANF Block Grant The TANF block grant's overallpurpose is to increase the flexibility of states to meet four statutory goals: (1) provide assistance to needyfamilies so thatchildren may remain in theirhomes; (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 federal rules that applied to states for their cash assistance programs. It also established a broad-purpose block grant that provides funds to states to address both the effects and rootcauses of childhood economic dis advantage. Federal Grants and State Funds TANF provides grants to the 50 states, District of Columbia, Puerto Rico, Guam, and the Virgin Islands. American Indian tribes may also operate their own TANF https://crS repo programs with federal dollars. Thebulk of TANF funding is in a basic blockgrant of $16.5 billion per year. Every year, each state receives a fixed grant based on how much 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 been no adjustment for inflation or population change. From 1997 to 2020, the basic TANFblockgranthaslost 38% ofits value to inflation. During TANF's history, states have at times received TANF funds in addition to the basic block grant. For FY2021, 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 minimum amount of their own funds on the TANF-related population and TANF-related programs (a total minimum of $10.3 billion per year). This amount is also based on historical expenditures in pre-TANF programs and is known as the maintenance of effort (MOE) requirement. Some states spend more than the minimum. Use of TANF Funds States may use federalblock grant and MOEfunds in any mannerthatis reasonably calculated to achieve TANF's statutory purpose and goals. States have used TANF funds for a wide range of benefits and services. In FY2019, a total of $30.9 billion was spent by states fromfederal TANF and state MOEfunds. TANF basic assistance, including monthly cashbenefits to families with children, totaled $6.5 billion. In addition to assistance, TANF contributes to state funds used for work and training programs, child care, pre- kindergarten programs, programs to provides ervices 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 1. Uses of Federal TANF and State MOE Funds, by Category: FY20 1 9 Total=$30.9 Billion Basic Assis tance $6.SB Child Care 5O Work, Education and Training <3.2B Refundable Tax Credi $2.83 Pre -/Head start $2.6B Child welfare Administration Emergency and Short-Term Benefits .S Other Services $4.B Source: Congressional Research Service (CRS), based on datafrom the Department of Health and Human Services (HHS).

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