Temporary Cash Assistance and Welfare

TANF IN BRIEF...

New TANF Policy Changes as 1996 Law Re-Authorized

After a lengthy legislative process, President Bush signed the Deficit Reduction Act (DRA) into law (P.L. 109-171) in February 2006, which re-authorized the Temporary Assistance to Needy Families (TANF) program. Passed in 1996, TANF changed the nature of welfare assistance to impoverished families with children. Efforts to re-authorize program have been in the works for years as the original welfare law expired in 2002. The program has coasted from then until now because Congress passed extension after extension.

Regulations Remove States' Flexibility in Designing TANF Programs

On June 30th, the Department of Health and Human Resources issued regulations to give states further guidance to assist with implementing DRA. As a result, TANF’s reauthorization in 2005 and the subsequent regulations have:

• Expanded the number of adults who must participate in work activities;
• Changed the ways that states are rewarded for caseload declines;
• Defined activities states may count as meeting federal work requirements; and it
• Imposes penalties (5 percent) for not complying with federal regulations.

The law and the accompanying regulations will pose a challenge for states as many of the adults now counted toward work activities under the DRA are individuals states moved into separate state-based programs either because they were 1) ineligible for TANF under federal rules or 2) their needs were more complex.

The regulations required states submit work verification plans by September 30th. For each countable work activity, states must include in their plans how the activity meets federal work activities, how work eligibility is determined, and how the state plans to track, verify, and report work activities.

Impact on Maryland...

The 2006 Joint Chairmen's Report (pages 128-129) required the Department of Human Resources to produce a report on the changes it plans to make to Maryland's TANF program. The content of that report is provided below:

• Overview - Federal Regulatory Changes to the TANF program and planned actions by the Department of Human Resources.
  • Attachment A - Summary of the new federal TANF regulations
  • Attachment B - The 1996 TANF rules and the new TANF rules
  • Attachment C - The 1996 TANF law with the DRATANF provisions
  • Attachment D - Key regulatory provisions and Maryland's response
    
    
• Presentation - Maryland Department of Human Resources to the Senate Finance Committee on January 12, 2006

• MBPTI Policy Brief - Congress Proposes Changes to Welfare -- What Will the New Federal Requirements Mean for Maryland? (1/2006)

Additional Information Regarding TANF Changes...

General Impact for States

• New TANF provisions: Presentation by Mark Greenberg (CLASP) for the Coalition on Human Needs (1/12/2006)
  
• CRS Issue Brief for Congress: Welfare Reauthorization -- An Overview of the Issues (12/22/2005)

Caseload Reduction Credits

• CRS Memorandum: TANF Work Participation Standard - Revising the Caseload Reduction Credit (12/19/2005)

Child Support

• Child Support - In a separate issue, under the DRA, Maryland could potentially lose $1.1 million in federal funding for its child support program. This link outlines the options the state is considering to fill the gap.

• To see how the new work participation requirements will affect states, see the Center on Law and Social Policy (CLASP) web site: http://www.clasp.org/publications/tanfagreement_update_jan12.pdf
  
• To see state-by-state numbers, of the impact of the new policy changes on child support, visit the CLASP web site: http://www.clasp.org/publications/incentive_payments_121405.pdf