TANF Reauthorization

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TANF Reauthorization

• Overview of Pending Legislation
• Status of Congressional Action

Suzanne Armato Midwest Partners September 10, 2002
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TANF ReauthorizationWhat is TANF?

• The Temporary Assistance for Needy Families
  (TANF) block grant funding is set to expire
  9/30/02.
• TANF block grant provides federal dollars to
  states to provide cash assistance and income
  supports to families on welfare and low-income
  working parents.

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Welfare Reform Basics

• In 1996, the Personal Responsibility and Work
  Opportunity Reconciliation Act (PRWORA) created
  the TANF block grant to replace AFDC.
• Purposes of new TANF welfare program
• To assist needy families with children
• To end dependence of needy parents by promoting
  job preparation, work marriage
• To reduce out-of-wedlock births
• To promote the formation maintenance of
  two-parent families.

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Outcomes of Welfare Reform

• Welfare caseloads dropped by nearly 50 for first
  five years 32 states have seen a caseload
  increase since 5/01.
• More than 50 of welfare leavers continue to live
  and work below the federal poverty line.
• Average wage of welfare leaver is 6.61 per hour
  with no health care or other insurance coverage.
• One in seven income-eligible children receive the
  child care subsidy.

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TANF ReauthorizationRisk Opportunity

• Opportunity To remain committed to providing a
  range of income and work-related supports to
  families living in poverty until they have
  reached economic security.
• Risk Families receiving TANF may have more
  stringent work requirements with no focus on
  improving a families economic situation. A
  renewed focus may be placed on family formation
  or marriage promotion. Funding for TANF program
  may be reduced.

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TANF Reauthorization Face OffThe three branches
of federal government

• Administration -- includes President and
  Department of Health and Human Services
• House of Representatives -- Way Means
  Committee Republican led House supports
  Administration
• Senate -- Senate Finance Committee Democratic
  led Senate puts forth tri-partisan approach

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Administrations Viewpoint

• Welfare reform widely successful with millions of
  women leaving welfare for work.
• Welfare recipients are not working there are too
  many loop holes to work requirement.
• Work hours for welfare recipients to increase to
  40 hours/week with a narrow definition of work.
• Family formation or marriage promotion is the way
  to end poverty and improve child well being.

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House Viewpoint

• Same work requirement position as the
  Administrations, more hours and narrow definition
  of work.
• Child care funding increase of 1 billion over
  five years.
• Establishing superwaivers so states have the
  flexibility to combine low-income programs and
  re-define own eligibility and program outcomes.
• Promote family formation as a solution to poverty.

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Senate Viewpoint

• Work requirements and work definitions are
  working as currently legislated.
• Child care funding needs to be increased to at
  least 5 billion over next five years.
• Education and training would be an allowable
  option as well as other employment improvement
  activities.
• Employment bonuses to states for improving
  employment earnings, job retention and other work
  related positive outcomes.

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Status of Federal Debate

• President entrenched in his position.
• House passed its bill along party lines.
• Senate wants to debate and vote on its bill, but
  unclear if there is enough time.
• Stalemate -- no reauthorization.

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Next Steps for Reauthorization

• If the Senate does not pass a bill, the President
  will reauthorize the TANF funding.
  Reauthorization will be re-debated next session.
• If the Senate does pass a bill, the House and
  Senate bills will go to conference committee
  (most likely during a lame duck session during
  late November or early December). Depending on
  outcome President may or may not sign.
• Most likely scenario Funding will be extended
  for one more year and the debate will be
  continued for one more year.

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Next Steps for You

• Stay involved and informed.
• TANF is a key poverty-reduction program with
  nearly half of all its funding for low-income
  supports other than welfare.
• If debated next year, tougher fight for funding
  because of swelling federal deficit.
• Plan on attending the Midwest Partners annual
  summit on Friday, 11/15, for next steps as a
  region, states and individuals.

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Contact Information

• Please feel free to contact Midwest Partners for
  additional information at the following addresses
• Address 6900 S. Main, Suite 54, Downers Grove,
  Illinois 60516
• Phone [phone]
• Email sarmato_at_midwestpartners.org
• Website www.midwestpartners.org