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February 2, 2021 States spend only about a fifth of their combined federal and state dollars under the Temporary Assistance for Needy Families (TANF) block grant on basic assistance for families with children, our analysis of the latest data from fiscal year 2019 shows, and several states spend less than a tenth. States are using their considerable flexibility under TANF, the primary cash assistance program for families with the lowest incomes, to divert funds away from income support for families and toward other, often unrelated state budget areas, as they have increasingly done since TANF’s creation in 1996. By changing course and redirecting the funds back towards cash assistance, states could improve academic, health, and economic outcomes for children in families in poverty, research shows. ....