New TANF Flexibility Gives States Greater Opportunity to Support Working Families

by Deborah Stein, National Association of Child Advocates

Nearly three years after the passage of the 1996 Welfare Act, the Department of Health and Human Services has issued final Temporary Assistance to Needy Families (TANF) regulations. The regulations, which go into effect October 1, 1999, offer new opportunities for states to support low-income families, according to What a Child Advocate Needs To Know About the New TANF Regulations, an analysis from the National Association of Child Advocates.

The new regulations greatly increase state flexibility, particularly in assisting low-income working families and in operating separate state programs. Given the current availability of significant unspent TANF funds, states now have both the dollars and the regulatory flexibility to craft programs that will best serve families. States will have to revisit components of their TANF programs to comply with the regulations, and should consider additional changes to exploit some of the new flexibility.

Once the regulations go into effect, TANF funds from prior fiscal years can only be spent on "assistance" — which the new regulations define as supports for basic needs, and supportive services for non-working families.

The analysis points out that states with significant unused TANF funds may wish to appropriate them for working family supports, such as transportation, child care, case management services or post-employment vocational training, by September 30, 1999. It also notes that as states consider TANF program changes, they may want to include provisions for evaluation and documentation of outcomes that will assist federal efforts to get TANF reauthorized at similar funding levels in 2002.

Several changes put new pressure on states to revise administrative procedures. The penalty for inappropriate sanctions now applies both to under- and over-sanctioning. States may want to adopt measures to minimize erroneous sanctions, such as strong notice and hearing rights, and additional training for case handlers. The final regulations also revise reporting requirements on individual cases. Because states will have to modify their computer systems, this provides a good opportunity for legislatures to add any additional reporting requirements that will assist them in meeting their oversight obligations. States will now be required to report in detail which programs they are funding with their state maintenance of effort dollars, which will also facilitate oversight.

For a copy of the full analysis, visit the National Association of Child Advocates’ website at www.childadvocacy.org, or call Lyn Elbi at (202) 289-0777, ext. 201.