Last Updated 09/08/2023
TANF is a block grant that provides states with considerable flexibility in how they spend their funds. There are many aspects to TANF Spending. below, we first provide a quick guide to TANF spending then provide links to additional resources. We also provide more detail in the Q and A document that you can find under Additional Files at the right.
Quick Guide to TANF Spending
- TANF Funds (Federal and State) can only be spent on resources and programs that are aligned with TANF’s four purposes:
- Provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;
- End the dependence of needy parents on government benefits by promoting job preparation, work, and marriage;
- Prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and
- Encourage the formation and maintenance of two-parent families.
- TANF funds can only be spent on families with children (but can be spent on the parents or the children in those families).
- Federal TANF funds can be carried over and spent at any time but state funds must be spent in the current year.
- When TANF funds are used to provide “assistance,” specific requirements are triggered, including time limits, child support cooperation requirements and work requirements. The definition of assistance is defined in regulations and includes exceptions which make it possible to help families meet their basic needs without triggering these requirements.
Some things to note regarding assistance:
- Families receiving cash assistance are already receiving “assistance” so any additional benefits that help them meet their basic needs do not trigger any additional requirements.
- Supportive services (e.g., transportation and child care) provided to working families are not considered assistance.
- Short-term cash assistance (e.g., emergency assistance) is not considered assistance as long as it meets the criteria laid out in the regulations – intended to respond to a crisis or short-term need, not intended to meet ongoing needs, won’t extend more than four months.
- Work subsidies and refundable earned income tax credits are not considered assistance.
- Services (such as counseling or case management) are not considered assistance
Key Resources:
- Overview of how federal and state TANF funds can be used: Guide to Use of TANF and MOE Funds | CLASP
- Spending Data as Reported to HHS: State TANF Data and Reports | The Administration for Children and Families (hhs.gov).
- Analysis of annual TANF spending data: Policy Brief: To Strengthen Economic Security and Advance Equity, States Should Invest More TANF Dollars in Basic Assistance | Center on Budget and Policy Priorities (cbpp.org)
- Longitudinal file of TANF Spending: Under Additional Files at right
- State Fact Sheets Based on Annual Data: State Fact Sheets: How States Spend Funds Under the TANF Block Grant | Center on Budget and Policy Priorities (cbpp.org)
- Flaws of TANF’s Block Grant Structure: TANF’s Inadequate Response to Recession Highlights Weakness of Block-Grant Structure | Center on Budget and Policy Priorities (cbpp.org)
Additional Resources: