The Temporary Assistance for Needy Families Block Grant

Center for Law and Social Policy

Legislation enacting the Temporary Assistance for Needy Families (TANF) Block Grant repealed the Aid to Families with Dependent Children (AFDC), Job Opportunity and Basic Skills (JOBS) and Emergency Assistance programs. States were to begin to disperse financial assistance to qualified families by July 1, 1997 through funds provided by TANF. This change in funding brought new requirements for states to meet while also allowing states to make strategic decisions on how to assist needy families in making a transition into the work force.

In order for states to receive a TANF grant states must submit a state plan which is acceptable only if it provides the information required by law. State eligibility is also dependent on the state spending no less than 80% of a "historic spending level," which is determined by the 1994 fiscal year spending. The money received by an eligible state will be a reflection of the recent spending by the state when under the AFDC Program, the JOBS program and Emergency Assistance Programs.

TANF rules allow the state to disperse funds for cash and non-cash assistance, services and administrative costs in connection with assistance to needy families with children. Under TANF, no family has entitlement to assistance, although it does prohibit certain families from receiving aid. Thus, states are allowed to determine which families are eligible. Furthermore, TANF requires states to meet certain work participation quotas or else risk penalties. Finally, TANF differs from AFDC in that TANF recipients are not automatically eligible for Medicaid

The new legislation enacting TANF puts states in the position to make key decisions about which families to assist, what requirements such families should meet, and how families should be helped out in order to effectively enter the labor force.

Vol. IV, No. 2, p. 311 (1997)

Revised July 17, 2003 (MD)