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Congressional Research Service
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                                                                                                March  27, 2018

Temporary Assistance for Needy Families: Work Requirements


Introduction
The Temporary  Assistance for Needy Families (TANF)
block grant helps states fund public assistance programs for
needy families with children, usually headed by a single
mother. TANF  was created in the 1996 welfare reform law,
with a goal of ending dependence on assistance through
work and job preparation. This In Focus discusses TANF
work requirements, summarizing and extending the analysis
in CRS Report R44751, Temporary Assistance for Needy
Families (TANF): The Work Participation Standard and
Engagement  in Welfare-to-Work Activities. Despite the
work requirements, only a minority of non-employed
TANF   assistance recipients are engaged in activities such as
job search, subsidized employment, community service, or
education and training in a month.

Federal TANF Work Requirements
The federal TANF work requirements apply to states, rather
than individual recipients. Most prominent is a numerical
performance standard-a minimum  work participation rate
(WPR)-that   each state must meet or risk a penalty that
would reduce its block grant. It is this numerical standard
and its detailed rules that are commonly referred to as the
TANF   work requirement. The standard was intended to
provide accountability, while giving states flexibility to
meet TANF's  goals.

While the federal participation standard may help shape
states' decisions about their work requirements for
individual recipients, it is the states that determine what
those requirements look like. States decide whether or not
to provide assistance to working low-income parents. States
also decide who among the non-working recipients must
participate in activities, what activities they must engage in,
and how many  hours are required.

The  Work   Participation Standard
In order for the state to meet the work participation
standard, (TANF) statute requires that states have either
working, or engaged in activities, 50% of all families and
90%  of families with two parents. Families are excluded in
the WPR  calculation if they do not have a work-eligible
individual (e.g., grandparents caring for a child) or are
otherwise exempt (e.g., single parents caring for an infant).

WPR   Targets  Vary  by State and Year
Further, the statutory percentages may be reduced by
credits. The main credit is for caseload reduction, which has
played a large role in TANF. The assistance caseload fell
from 5.1 million families in March 1994 to 1.4 million in
March  2017. Much of this decline resulted from states
serving fewer eligible families, rather than declines in the
number  of families eligible for benefits. Currently, each
state receives credits for the total caseload reduction that
has occurred in it since FY2005.


For FY2016  (the latest year data are available), 12 states
received no credit and faced the full 50% standard for all
families, while 20 states had this standard reduced to 0%.
Thus, 20 states could have no recipients working or
engaged in activities and still meet the TANF standard.

What   Counts  as Engagement   in Activities?
There are detailed rules about what activities count, when
those activities count, and how many hours recipients must
be engaged in activities for them to count toward meeting
the state's work participation standard. Federal rules permit
states to count as engagement working at a job while
simultaneously receiving assistance (unsubsidized
employment), or participation in work and job preparation
activities, which include job search and readiness,
education and training, subsidized employment, community
service, and work experience programs. TANF's rules limit
the counting of job search, job readiness, and education
training. This reflects a work-first philosophy, which
seeks to move recipients quickly into jobs.

Figure I. Federal TANF  Work   Participation
Standards  and State Work  Requirements


Source: Congressional Research Service (CRS).


WPRs   Achieved   by States
Figure 2 shows the TANF WPR   for FY2002 through
FY2016. For the period from FY2002 to FY201 1, the
national WPR held fairly steady, around 30%. Beginning in
FY2012, the WPR  began to increase, and in FY2016 it
exceeded 50% for the first time.

The figure divides the WPR into three participation
categories: (1) welfare-to-work activities, (2) unsubsidized


https://crsrepots.congress.go


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