Q & A: Contingency Fund
TANF Program Policy Questions and Answers
Q1: Program Instruction TANF-ACF-PI-2008-4 dated May 6, 2008 states that if a State received Contingency Funds for fewer than 12 months during the fiscal year, the applicable FMAP is reduced to equal 1/12th multiplied by the number of eligible months in the fiscal year for which the State received funding. Under which scenario, if any, would a State that qualifies for Contingency Funds for all 12 months of the fiscal year, have its applicable FMAP reduced: (a) a State that requests and receives Contingency Funds for some of the months in the fiscal year (e.g., 6 months); or (b) a State that requests a partial payment for each of the 12 months of the fiscal year (e.g., 50 percent of the monthly amount)?
A1: Under both scenarios, a State may receive up to 1/12th of 20 percent of its annual State Family Assistance Grant applicable for the particular fiscal year.
Under scenario (a), the State’s applicable FMAP would be reduced (e.g., by 50 percent using 6 months). Under scenario (b), the full FMAP would apply. There is no reduction in the FMAP when a State requests partial or full payment of Contingency Funds (up to 20 percent of the State’s annual State Family Assistance Grant applicable for the fiscal year) for every month of the fiscal year.