Date: July 2023 

Most states limit the amount of assets that either applicant or recipient families can hold and still be eligible for TANF. Low asset limits can restrict access to cash assistance and make it harder for families to save for emergencies or long-term goals. This disproportionately affects groups that are the most likely to be marginalized—Black people and other people of color, especially women, are less likely to have savings and other assets that they can use as a buffer when a crisis (e.g. job loss or illness) strikes. Increasing or eliminating the asset limit can be a strategy to improve access to TANF cash assistance. The impact of asset limits on TANF caseloads and spending in the aggregate have been negligible, suggesting that states have little to lose by lifting or removing them. 

Key Resources:  

CLASP’s Brief on the Importance of Eliminating Asset Limits: This brief by CLASP provides an overview on the benefits of eliminating asset limits in both TANF and SNAP. It includes a table of asset limit policies by state, but the data is from 2018. Updated data can be accessed through the Welfare Rules Database (WRD). Tables I.C.1 and IV.A.3 provide 50 state and DC information on asset limits for applicants and recipients, respectively. If the information from WRD is also outdated, please feel free to contact CBPP staff for updated data.

Examples from Illinois: In 2013, Illinois eliminated the TANF asset limit. The Heartland Alliance has published the fact sheet, FAQ, and responses to opposition document that they used to successfully advocate for this policy.  These pieces also include data (though IL specific) about the number of people denied due to asset limits and potential state savings. 

Do Limits on Family Assets Affect Participation in, Costs of TANF?: This 2016 issue brief from Pew details what states may be able to expect when raising or eliminating asset limits. Pew found that states that raised or eliminated asset limits saw no statistically significant increase in TANF recipients or monthly applicants. They also found that raising the asset limit can modestly reduce states’ administrative costs.