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1 1 (December 11, 2018)

handle is hein.crs/govycj0001 and id is 1 raw text is: Conresioa Reeac Seric December 11, 2018 TANF Reauthorization: Senate Finance Committee Discussion Draft of November 19, 2018 Introduction The Temporary Assistance for Needy Families (TANF) block grant provides grants to states, tribes, and the territories for a wide range of benefits and services that seek to address the effects and root causes of child poverty and economic disadvantage. Funding for TANF and related programs is set to expire on December 22, 2018. On November 19, 2018, Senate Finance Committee Chairman Senator Hatch and ranking member Senator Ron Wyden released a discussion draft bill that would make policy changes and extend funding for TANF through FY2021. The release of this Senate Finance Committee discussion draft follows action earlier in the 115th Congress, when the House Ways and Means Committee reported legislation (H.R. 5861) that would have reauthorized and restructured the block grant through FY2023. For a discussion of the reported bill, see CRS In Focus IF10892, TANF Reauthorization: H.R. 5861. TANF Purpose and Goals Under current law, TANF's purpose is to increase state flexibility to achieve four statutory goals: (1) provide assistance for needy families so that children may remain in their own homes; (2) end dependence 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. The discussion draft would maintain these goals for the TANF program. TANF F nancing For FY2018, TANF provided grants to states through its basic block grant ($16.5 billion total) and contingency funds ($608 million). TANF also awards competitive grants (to states and community-based organizations) to operate programs to promote responsible fatherhood and healthy marriage. These are funded at $150 million per year. The TANF statute also provides mandatory funds for child care at $2.917 billion per year. These child care funds are combined at the state level with discretionary funds received under the Child Care and Development Block Grant (CCDBG). TANF research and evaluation activities are funded at $55 million per year. The Senate Finance Committee discussion draft would reauthorize and provide funding for TANF, the contingency fund, responsible fatherhood and healthy marriage programs, mandatory child care, and research and evaluation at current levels through FY2021. H.R. 5861 would extend most TANF and related funding at current levels through FY2023. In contrast to the Senate Finance Committee discussion draft, H.R. 5861 would eliminate the TANF contingency fund and re-direct those funds to mandatory child care. In addition to federal funds, TANF requires states to spend a minimum total of $10.3 billion per year of their own funds on TANF or TANF-related programs. This is known as the maintenance of effort (MOE) requirement. Both the Senate Finance Committee discussion draft and H.R. 5861 would extend the state spending requirement at current levels. Use of Funds States may use their TANF funds in any manner that is reasonably calculated to accomplish the block grant's purpose and goals. There are no requirements that states spend a proportion of their funds in specified activities. Additionally, though funds expended to further the TANF goals of providing assistance and ending dependence must be spent on needy families, states themselves define what needy families means. Benefits, services, and activities spent to further TANF goals of reducing out-of-wedlock pregnancies and promoting the formation of two-parent families are not required to be limited to needy or low- income families. H.R. 5861 would require states to spend a specified minimum amount of TANF funds on core activities (assistance and work), as well as prohibit states from spending TANF dollars on families whose income exceeds 200% of the federal poverty level (FPL). The Senate Finance Committee discussion draft does not include these restrictions. However, it would require states to report on the share of TANF dollars spent on families receiving assistance with incomes below 100% of the FPL, with incomes below 200% of the FPL, and, consequently, the share spent on families with incomes above 200% of the FPL. Work Requirements Current TANF work requirements are focused on a requirement that a state meet a minimum work participation rate (WPR). The WPR is the share of families with a work- eligible individual who is either working or engaged in activities. The minimum WPR is a performance standard for the state; it does not apply directly to individual recipients. A state that does not meet the WPR is at risk of a reduction in its federal TANF funds. In order for a state to meet the current TANF work participation standard, a work-eligible individual in 50% of all families, and 90% of families with two parents, that https://crsreports.congress go 0

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