ActionBrief

Welfare Reform: The Temporary Assistance For Needy Families (TANF) Program

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Who does TANF consider “needy”?

The states are given broad discretion in defining “needy” and in setting eligibility standards. Families do not have to be receiving TANF cash assistance to be eligible for other services or benefits, although states can decide to make this a condition. Therefore, TANF provides important opportunities to help low-wage workers and their families.

The Workforce Investment Act (WIA) aims to coordinate workforce development activities through streamlined one-stop systems. One-stop Centers must provide universal access to core services. These core services may include intake, eligibility determination, skill assessment, access to vacancy lists, job search assistance, and information about training and support services. WIA funding streams, including WtW grants, are to be coordinated through a state’s one-stop system; the state’s TANF agency is also a possible partner. Priority is given to welfare recipients and low-income workers for training services if funding is limited — but these workers may be able to access other resources under TANF and WtW and these should be considered in evaluating whether funds are limited.

The federal rules impose no general eligibility ceiling — except for one particular use of TANF funds. An income ceiling is set for TANF funds that states decide to transfer to Title XX, the Social Services Block Grant, and families served through these funds must have incomes below 200 percent of poverty (twice the federal poverty guidelines). But in general, the federal TANF statute provides no income eligibility ceiling, which means that states could set income ceilings above 200 percent of poverty.

Different services and benefits can have different eligibility ceilings. For example, a state could limit eligibility for cash assistance to families living at or below poverty, but could provide supportive services such as childcare or transportation to working families with incomes up to 250 percent of poverty. By adopting different standards, states may provide work supports to a broad range of low-income families.

States have further discretion to prioritize. For example, a state could give priority to families with incomes at a level set below the state’s income eligibility ceilings, putting those families first in line for services. Any state that does prioritize must include objective criteria for determining eligibility in its plan to insure the standards are fair.

 

 

2001 Federal Poverty Guidelines
Health and Human Services

Size of Family Unit
48 Contiguous States and D.C.
Alaska
Hawaii
1
$ 8,590
$10,730
$ 9,890
2
11,610
14,510
13,360
3
14,630
18,290
16,830
4
17,650
22,070
20,300
5
20,670
25,850
23,770
6
23,690
29,630
27,240
7
26,710
33,410
30,710
8
29,730
37,190
34,180
For each additional person, add
3,020
3,780
3,470

SOURCE: Federal Register, Vol. 66, No. 33, February 16, 2001, pp. 10695-10697

States can choose to, but do not have to, use these federal poverty guidelines, or some multiple or percentage of the guidelines, to set eligibility ceilings for their programs. For example, 150% of poverty means 1.5 times the poverty guideline for the family size. HHS poverty guidelines are updated annually, usually between mid-February and early March, to account for the previous year’s increase in prices as measured by the Consumer Price Index. The 2002 poverty guidelines will be posted by Health and Human Services at: http://aspe.hhs.gov/poverty/poverty.htm

 

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