Introduction
Temporary Assistance for Needy Families (TANF) is a program put in place by the federal government of the United States of America. The program is meant to help poor families sustain themselves. States are allocated block grants by the government in order to plan and run programs that accomplish one of the purposes set forth in TANF. The initiative was developed in 1996. It came into effect after the passing of the Personal Responsibility and Work Opportunity Act. The legislation was passed during the reign of President Bill Clinton (Brown 35). The program was implemented officially on July 1, 1997.
As a temporary form of assistance, the initiative focuses on helping people get off aid through employment. According to the initial rules, the benefits are required to last for a maximum period of 60 months. However, some states have changed the regulations and are offering assistance for shorter durations. Such jurisdictions include California, Washington, and New Mexico. The alteration is influenced by laws that provide the state governments with freedom to come up with plans on how to offer the aid. In addition, states have the right to revoke entitlements. According to the newly passed law, people registered for TANF programs are required to secure employment within 24 months (Danielson and Klerman 720).
In this paper, the author will analyze how the TANF system works in the U.S. To this end, the author will evaluate how the program functions in California. The changes made to the program will also be discussed. Other aspects to be highlighted include caseloads and the amount of cash assistance given to the needy families. In addition, work requirements and time limit rules will be evaluated.
How TANF System Works
An Overview of the Program
TANF focuses on the provision of both financial aid and work opportunities. The program is run by the Office of Family Assistance. The agency is part of the Administration for Children and Families body. To avail the services and reach out to the needy from different places in the country, each state has a local TANF administrative center (Gene 13). However, the title of the assistance programs offered differs from one state to the other. The program has four primary purposes. They include reducing reliance on aid among deprived parents through provision of job opportunities. Other functions include job training and marriage (Fisher 34).
In addition, the program encourages the establishment of two-parent families in the U.S. It also offers help to needy families with the aim of ensuring that children are cared for in their own homes. In addition, the program strives to enlighten women on the negative impacts of out-of-wedlock pregnancies. The four key goals of TANF tend to be general in nature (Danielson and Klerman 715). As a result, state governments have the freedom of utilizing funds in a broader manner to offer more services to their citizens.
In order to operate TANF programs, states are allocated funds by the federal government. However, for the funds to be provided, state authorities are required to spend some of their resources on programs aimed at helping the needy (Fisher 65). Failure to use their finances results in hefty penalties from the federal government. The state expenditure prerequisite is referred to as Maintenance of Effort (MOE).
Since signing of the Act in 1996, the federal government has been offering block grants of $16.5 billion per annum (Brown 54). The figure has remained constant for a long time. As a result of this stagnation, the value of the allocations has depreciated by 30% over the years. The decrease is brought about by, among others, a rise in inflation rates and cost of living. Each state that is offering the program is required to spend 80 percent of the payments made in 1994 to support AFDC related assistance plans (Gene 17). However, the amount can be reduced to 75%.
Federal Government’s Eligibility Rules for Assistance
Not all individuals within a given state qualify for TANF cash transfer. State governments are mandated to legislate on eligibility in relation to the services and gains offered by the program (Fisher 71). As a result of this, states can set different eligibility requirements for all the needy programs provided. In addition, they can develop their own policies regarding the criteria employed to determine who can awarded the benefits.
For a family to be eligible for TANF, it must have a minor child who needs help. The rules and regulations governing the program provide a working definition of a minor. The term is used to refer to a person below the age of 18. It can also be an individual who is aged 18 but who is still attending school. Such an individual is considered to be dependent on their family and the state. Families without children or couples are not entitled to receive TANF benefits (Danielson and Klerman 717). However, the services can be offered to a household with a pregnant woman. In addition, for individuals to be eligible, they must be needy. Again, the act that brought the program into effect defines what needy is. According to the legislation, a needy person is an individual living on an income below the state’s specified level.
The federal laws prohibit state governments from offering TANF benefits to a number of persons and families. For example, households with an adult cannot benefit from the program for more than 60 months (Brown 45). The reason behind this is because 5 years is the general limit set by the legislation. Unmarried teen parents are also not eligible. For them to enjoy the benefits, they must be residing within locales that are under the supervision of an adult (Brown 45).
In addition, teens that have not completed high school cannot be offered TANF funds. Assistance can only be provided when such individuals are found to be making an effort to advance in life and achieve education. Other groups that are not eligible for aid include fugitive felons, drug convicts, and individuals who have violated parole rules. In addition, the federal law prohibits assistance for individuals who are not citizens of the U.S and who arrived in the country before August 22, 1996 (Gene 18). However, the restriction lasts for a period of five years after arrival.
In spite of the strict regulations governing the program, states can offer aid to the proscribed groups of persons using MOE funds. Utilization of TANF funds is considered to be a breach of federal laws. Consequently, states found to have violated the rule are slapped with hefty fines. The penalty entails, among others, a reduction in the amount of block grant (Fisher 52).
Functioning of the TANF Program in California
Since 1996 when TANF program was implemented, states have been given the freedom to determine how to operate the system. Over the years, some states have reduced TANF benefits by significant margins. The cuts are made without taking into consideration unemployment and other unprecedented developments. The largest deductions since 1996 were made in 2011. The move affected 700,000 low income families that depended on the program (Danielson and Klerman 725). One of the states that made a cut on TANF benefits was California.
California changed its assistance programs by shortening the maximum time limit for receiving TANF benefits. Through this, the state cut off aid to thousands of needy families and children. The state government reduced the figure by 8%. As a result, benefits for a family of three dropped from $694 per month to $638 (Gene 8). In July 1, 2011, California reduced the maximum assistance time limit from 60 to 48 months. The change resulted in a reduction of TANF benefits by $122 each month. In addition, the state cut the amount of discounted earnings by half. The sum was reduced to $112 plus 50% from $225 plus 50 percent (Gene 10).
Changes in Caseloads over Time
TANF caseloads have reduced by a big margin since the program was first implemented in 1996. For example, between 1997 and 2011, the caseload declined by 50%. Within the states, the level decreased by 25% to settle at 80%. In 2010, California accounted for the largest number of TANF cases (Brown 44). The level stood at 30%. Differences in caseloads are attributed to a wide range of factors. They include assistance policies set by the state and economic power. Due to the program’s flexibility, states can alter aid policies as they wish. The changes result in a decline or an increase in participation rates. In some states, families are leaving the TANF programs (Fisher 63). In addition, few households now enroll for the services.
TANF’s caseloads are grouped into three parts. They include one parent, two parents, and no parent cases. In 2011, more than half of the parties receiving aid were children (Gene 15). The group is the only one that has registered an increase in caseloads. In 1997, two-parent families were 7% of the total beneficiaries. In 2011, the number declined to 5%. On the other hand, single parent assistance rate dropped from 72% in 1997 to 47% in 2011 (Brown 71).
Amount of Cash Assistance Received by Families
The amount of cash benefits offered to the needy is determined by the state (Fisher 59). The reason is because there are no federal laws dictating the sum to be awarded. In addition, there are no rules stipulating that a state must use TANF finances to offer help. However, all states use the program’s resources to help the needy. The amount of cash offered to families is determined by various factors. They include family size, housing costs, and state’s geographical configuration. In most cases, the maximum pay per month is awarded to families that survive on other income apart from TANF (Gene 21). The table in appendix 1 shows the maximum amount of TANF cash assistance paid to a family of three in different states.
TANF’s Work Requirements and Time Limit Rules
Work Requirements
For an individual or family to be eligible for TANF benefits, they must meet all the set work requirements. To begin with, it is mandatory for persons to work once they are ready. In addition, they are required to find employment within two years after enrollment to the program. Single parents are required to work for at least 30 hours each week to qualify (Danielson and Klerman 718). On the other hand, two parent families must work for 35 to 55 hours per week. Failure to fulfill the work requirement rules results in a decrease or cancelation of cash allocated. To ensure the rules are followed, state governments make regular assessments. A state should evaluate the parents’ skills, employability, and work experience.
Time Limit Rules
States are not required to continue supporting needy families after a period of 60 months. However, the time limit does not apply to families headed by children. In addition, states are free to change the set time. In California, the current duration is 48 months (Gene 19). In spite of the fact that 5 years is the maximum limit, the government allows for finances to be used beyond the period in cases of hardships. However, assistance can only be offered to 20 percent of the caseloads.
Conclusion
Implementation of TANF program has been beneficial to a number of needy families in the United States. The rules and regulations governing the plan have undergone numerous changes. The alterations have affected participation rates across states. To this end, some state governments have increased the amount of cash assistance, while others have reduced the sum. In areas where the benefits have been reduced, families below the poverty line continue to suffer as they try to make ends meet in life.
Works Cited
Brown, Kay. Temporary Assistance for Needy Families: More States Counting Third Party Maintenance of Effort Spending, Washington, DC: U.S. Government Accountability Office, 2012. Print.
Danielson, Caroline, and Jacob Klerman. “Did Welfare Reform Cause the Caseload Decline?.” Social Service Review 82.4 (2008): 703-730. Print.
Fisher, Ronald. State and Local Public Finance. 3 rd ed. 2007. Mason, OH, USA: Thomson South-Western. Print.
Gene, Falk. “The Temporary Assistance for Needy Families (TANF) Block Grant: A Primer on TANF Financing and Federal Requirements.” Congressional Research Service (2013): 1-24. Print.
Appendix
Appendix 1: Allocation of TANF.