The Center on Budget and Policy Priorities released a report assessing how well Temporary Assistance for Needy Families (TANF) serves families in poverty. They find that the proportion of needy families assisted by TANF has decreased dramatically over time. Whereas its predecessor, Aid to Families with Dependent Children (AFDC), served 82 out of every 100 families in poverty in 1979, TANF served just 22 families out of every 100 in 2018.
TANF provides cash assistance to families in poverty. Families may receive up to two years of consecutive assistance, which is conditioned on work requirements. TANF is funded as a block grant to states, who may set their own eligibility standards, requirements, and benefit levels. Because the TANF block grant has not been increased since its inception in 1997, it has lost nearly 40% of its value due to inflation.
There is wide variation in how well each state program serves poor families. In California, 68% of the families in poverty are served by TANF; in Louisiana, just 4% of those families are served. In 2018, 16 states served fewer than 10% of the families in poverty. In 1996, no states served that small a proportion.
Between 2006 and 2018, the share of families served fell in most states, as the number of families in poverty increased and TANF became less accessible. The authors identify several policy changes that have severely restricted access to TANF in recent years. In Arizona, where TANF assisted 27% of families in poverty in 2006 and 6% in 2018, policymakers cut benefits, shortened time limits, and imposed other eligibility restrictions. Indiana, which assisted 35% of families in poverty in 2006 and 6% in 2018, added job-search requirements and increased sanction penalties that reduce or eliminate benefits when families fail to meet work requirements.
Black children are more likely than white children to live in states where TANF serves fewer families in poverty. Almost 41% of Black children live in states that serve 10% or fewer of families in poverty, compared to 30% of white children. Black families are also more likely to live in states with the lowest benefit levels and greater state sanction policies.
The authors recommend raising income thresholds; removing asset tests, time limits, and other hurdles; and increasing the TANF block grant to account for its decline in value.
The report can be accessed here: https://bit.ly/3bJQWIY