Funds Available to Strengthen Welfare to Work Programs

With decreasing welfare caseloads and surplus dollars in the budget, states have the money and flexibility to strengthen welfare to work programs. By the end of 1999, states will have at least one-quarter of welfare funds left unspent, and if they do not use the money federal policymakers may take funds away.

FACT:

By the end of 1999 states will have one-quarter of federal welfare funds left unspent.

Source: NCSL

States can use TANF block grants and state maintenance of effort money for programs as long as the services meet the four purposes of TANF: provide assistance to needy families, end welfare dependence by promoting employment, reduce out-of-wedlock pregnancies and encourage two parent families. Adding to the flexibility is the rule that states can transfer up to 30 percent of TANF funds to the Child Care and Development Block Grant, Social Services Block Grant and as a state match for the new Job Access and Reverse Commute Grant program.

Several states have used the TANF flexibility to allocate funds to help poor families find jobs that pay a living wage, obtain training and education, and provide child care. Florida and South Carolina operate educational programs to reduce teen pregnancy, while Washington gives incentives to caseworkers who help recipients find high wage jobs and stay employed. Maine and Wyoming run separate state programs to allow qualified recipients to go to college, and New York and Arizona help low-income families buy cars. Michigan uses TANF funds to operate an enhanced technical vocation program to help poor working parents gain skills in technology fields. Arizona uses funds from the Child Care and Development Block Grant for expanded child care for low income working families.

For more information on unspent TANF funds, contact the Center on Budget and Policy Priorities at 202-408-1080 or visit their website at www.cbpp.org.