July 2002
TANF Reauthorization 101: FAQs
About
this Fact Sheet
This
Fact Sheet was prepared by Vanessa Melamede and M.K. Tally and is based on the
briefing paper, Feminist Perspectives on TANF: An Introduction to Key Issues for the Future of Welfare
Reform, by Janice Peterson. IWPR’s work on welfare reauthorization is supported by the Ford Foundation, the Charles Stewart Mott Foundation, the Annie E. Casey
Foundation, and the David and Lucile Packard Foundation. What is TANF? Temporary
Assistance to Needy Families (TANF) was created under the 1996 welfare reform
legislation, the “Personal Responsibility and Work Opportunity
Reconciliation Act,” to replace Aid to Families with Dependent Children. What
are the Key Elements of TANF?
The
provisions in the federal law most often identified as the TANF program’s
key elements are: Also
included are a number of specific “family formation” provisions,
including: changed rules concerning assistance to two-parent families (giving states greater
flexibility in serving two-parent families); the establishment of the so-called "illegitimacy bonus" (rewarding
states with highest reduction in their non-marital birth ratio who have
also reduced their abortion rate); the denial of assistance to some minor parents (those who are unmarried, not
in school, and not living with relatives or other adults); and, the allocation of federal funding for "abstinence only" sex
education.
What
are the Impacts of TANF? Research
findings on welfare caseloads and employment have received the most attention
from those who argue welfare reform is a success. According to a variety of data sources, welfare caseloads have fallen
by 50 percent since their peak in 1994, employment rates among various groups
of single mothers have increased significantly, and the majority (60 percent,
on average) of those who leave welfare are employed (at least initially). However,
those who leave welfare for work typically earn below-poverty-level wages and,
despite increased employment, often do not see their incomes increase because
the loss of public assistance offsets the increase in earnings. Poverty rates for single mother families have fallen, but have declined
far more slowly than welfare caseloads, and deep poverty (income below 50% of the poverty line) has increased among single mother families. Family
formation outcomes, while a central focus of recent welfare reform rhetoric,
have received far less attention in the evaluation literature, and the
evaluations that have been done suggest TANF has had little impact in this
area.
What
are the TANF Reauthorization Issues? The
impacts on child well-being
The
adequacy and affordability of child care
The
effectiveness of current "welfare-to-work" strategies
What
is the Feminist Perspective on TANF Reauthorization? For
more information see Feminist
Perspectives on TANF Reauthorization: An Introduction to Key Issues for the
Future of Welfare Reform
by Janice Peterson (2001) and the websites listed below.
©
2002 by IWPR
A
number of issues and questions of critical importance to low-income women and
their families are likely to be debated in the context of TANF
reauthorization. These include:
Should the primary purpose of welfare reform policy be to reduce the
number of people receiving public assistance, reduce poverty, or promote
marriage and two parent families?
Should the size of the
block grant be reduced to reflect the decline in the number of welfare
recipients, or should it be maintained/increased to provide more funds to
"hard to employ" recipients and/or more services (such as child
care) to a broader population of low-income families?
Should time limits be restructured to provide more flexibility for
working recipients (i.e., “stopping the clock” when a parent is
employed, caring for young children or going to school and/or increasing
exemptions for parents with serious barriers to employment such as caring
for a chronically ill or disabled child or dealing with domestic
violence)?
Should federal protections be established against arbitrary sanctions
at the statelevel and should states be required to provide more services
to prevent sanctions?
Are there racial and
ethnic inequities in the current system? If so, what can be done to monitor these inequities and prevent
discriminatory practices?
What can and should be
done to strengthen the safety net for children in the context of TANF
(i.e., increasing participation in other programs such as Food Stamps and
Medicaid where many eligible children are not receiving benefits)?
Is there adequate
funding for child care for working TANF recipients, working TANF leavers,
and non-TANF low-income working parents? Should there be more federal regulation of child care quality?
Is the "work
first" approach fostering long-run economic security among welfare
leavers or should it be replaced with an expanded definition of “work
activities” to allow for more education and training? How can welfare-to-work programs better address the needs of the
“hard to employ”?
How
will TANF operate in a recession with a basic structure (i.e., time limits
and work requirements) that do not take the impacts of an economic
downturn into account? Are state "contingency funds" adequate?
Informational
Links:
Government
Links:
www.welfareinfo.org
www.afc.dhhs.gov/news/welfare/index.htm