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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. ....
How States Can Use TANF To Immediately Help Struggling Residents Download the PDF here. focused on what Congress should do at the federal level to address immediate needs. This brief concentrates on actions that should be taken at the state and local levels during the pandemic and recession. The third and final brief will discuss long-term structural changes that will make TANF a more effective and responsive anti-poverty aid program. In 2019, the Temporary Assistance for Needy Families (TANF) program provided assistance to almost 3 million people more than 1 million families experiencing poverty across the United States. 1 TANF is part of a continuum of aid programs such as unemployment insurance (UI), the Supplemental Nutrition Assistance Program (SNAP), and Medicaid that collectively help children and adults living in or at risk of poverty afford basic necessities, find work, and ultimately survive. ....