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TANF Emergency Fund in the Recovery Act of 2009

Powerpoint Presentations

Published: August 8, 2010
Temporary Assistance for Needy Families (TANF)
Power Point Presentation

Slide Title: TANF Emergency Fund in the Recovery Act of 2009


Slide 2 - TANF Emergency Fund

  • $5 billion available until September 30, 2010 for increases in:
    • Basic assistance
    • Non-recurrent, short-term benefits
    • Subsidized employment
  • Pays 80% of increase over base year (FY 2007 or 2008) expenditures
  • Each state can qualify for up to 50% of its TANF block grant, subject to overall cap
  • To date, we have awarded states over $2 billion

Slide 3 - Basic Assistance Expenditures

  • Basic assistance expenditures (triggered by caseload increase)
  • Can go beyond standard cash assistance.  For example:
    • Bonus payments, e.g., for job retention
    • Earnings supplements
    • Short-term increases in cash assistance grant

Slide 4 - Non-recurrent, Short-term Benefits

  • Must meet 3 conditions:
    • Address a family’s specific crisis situation or episode of need
    • Is not intended to meet recurrent or ongoing needs
    • Will not extend beyond 4 months
  • Very broad, flexible category of spending
  • Can go to low-income families whether or not they receive cash assistance

Slide 5 - Non-recurrent, Short-term Benefits: Examples

  • Cash diversion or welfare avoidance grants
  • Emergency housing assistance  (e.g., rent payment to prevent eviction, security deposit, moving costs)
  • Energy assistance to prevent utility shutoff
  • Refundable tax credits, such as state EITC
  • Back-to-school or clothing allowances to address specific needs

Slide 6 - Non-recurrent, Short-term Benefits: More Examples

  • Employment-related needs (e.g., vehicle purchase or repairs, tools, licensing and registration fees)
  • Short-term services (e.g., transportation, child care, domestic violence, substance abuse, and mental health treatment)
  • Short-term education and training activities

Slide 7 - Subsidized Employment

  • In public, private for-profit, or private non-profit sector
  • Includes the cost of wage subsidies, staffing and development, and employer supervision and training
  • Range of approaches permitted, including transitional employment programs
  • Employer supervision and training expenses can represent up to 25 percent of wage costs without special documentation.

Slide 8 - Qualifying Expenditures

  • Combined federal and state spending (20% does not have to be state dollars)
  • Must be an increase over comparable quarter in the base year (FY 2007 or FY 2008)
  • May be third-party spending claimed as state “maintenance-of-effort” spending (MOE)
    • Third-party cash donations
    • Third-party spending (in-kind donations)
    • Employer supervision and training costs

Slide 9 – Resources

 Slide 10 – Additional Resources