TANF 8th Annual Report to Congress - Specific Provisions of State Programs

Administration for Children and Families

	Search:

	Questions? \| Privacy \| Site Index \| Contact Us \| Download Reader™ \| Print

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
(TANF)

Eighth Annual Report to Congress

XII. Specific Provisions of State Programs

Form of Administration
TANF Eligibility
Treatment of Earnings
Resource Limits
Benefits
Work Requirements
States Claiming Continuing Waiver Inconsistencies with Respect to Work Requirements
Other Provisions
     Sanction Policies
     Diversion Payments
     Time Limiting Assistance
     Individual Development Accounts
     Waiver Inconsistencies Related to Work Participation and/or Time Limit Assistance Requirements of TANF
     Adoption of Family Violence Option
     Family Cap

Each State must submit a State plan to the Secretary that outlines how it intends to conduct a program in all political subdivisions of the State (not necessarily in a uniform manner) that provides cash aid to needy families with (or expecting) children and provides parents with job preparation, work, and support services. States may determine what benefit levels to set and what categories of families are eligible. States have the flexibility to design and operate a program that best matches their residents’ needs and helps families gain and maintain self-sufficiency.

Through a series of contracts, ACF has for several years provided resources to facilitate updating and expanding the Welfare Rules Database (WRD). The Urban Institute began developing the WRD in early 1997, as part of the Assessing New Federalism project. The database was conceived as a single location where information on program rules could be researched across States and/or across years, without the need to consult multiple documents, and it was intended to provide a resource for researchers working on both descriptive and quantitative projects. ACF has funded updates to the database, as well as publication of tables summarizing State TANF policies for each year since then. Unless otherwise noted, the information in the following tables is current as of July 2006.

Form of Administration

The chart below (Table 12:1) outlines how each State administers its TANF program.

**Table 12:1**

Formal Diversion Payments
State	Form of Administration	State or County Discretion
Alabama	State Supervised/ County Administered	State	State
Alaska	State	State	State
Arizona	State	State	State
Arkansas	State	State	State
California	State Supervised/ County Administered	State	State
Colorado	State Supervised/ County Administered	County	County
Connecticut	State	State	State
Delaware	State	State	State
District of Columbia	State	State	State
Florida	State	State	State
Georgia	State	State	County
Guam	Territory	Territory	Territory
Hawaii	State	State	State
Idaho	State	State	State
Illinois	State	State	State
Indiana	State	State	State
Iowa	State	State	County
Kansas	State	State	County
Kentucky	State	State	State
Louisiana	State	State	State
Maine	State	State	State
Maryland	State Supervised/ County Administered	State	County
Massachusetts	State	State	State
Michigan	State	State	State
Minnesota	State Supervised/ County Administered	County	State or County
Mississippi	State	State	State
Missouri	State	State	State
Montana	State Supervised/ County Administered	State	State
Nebraska	State	State	State
Nevada	State	State	State
New Hampshire	State	State	State
New Jersey	State Supervised/ County Administered	State	State
New Mexico	State	State	State
New York	State Supervised/ County Administered	State	County
North Carolina	County	County [1]	County
North Dakota	State Supervised/ County Administered	State	State
Ohio	State Supervised/ County Administered	State	County
Oklahoma	State	State	State
Oregon	State	State	County
Pennsylvania	State	State	State
Puerto Rico	Territory	Territory	Territory
Rhode Island	State	State	State
South Carolina	State	County	State
South Dakota	State	State	State
Tennessee	State	State	State
Texas	State	State	County
Utah	State	State	State
Vermont	State	State	State
Virginia	County	State	State
Virgin Islands	Territory	Territory	Territory
Washington	State	State	State
West Virginia	State	State	State
Wisconsin	County	State	County [2]
Wyoming	State	State	State
[1] In certain areas.
[2] Except for Milwaukee where the State provides direct contract approval for all TANF service provision.

TANF Eligibility

Table 12:2 describes States’ income eligibility tests for determining whether an applicant can begin receiving benefits. The table indicates which State income standard is used for each test. Table 12:3 explains the value of the particular standard for a three-person family. States that impose a net income test generally disregard a portion of the unit’s earned income before comparing the income to the State’s income standard. These maximum earnings for initial eligibility are captured in table 12:4.

**Table 12:2**

Income Eligibility Tests for Applicants, July 2006
State	Type of Test	Income Must be Less Than
Alabama	Net income	100% of Payment Standard
Alaska	Gross income	185% of Need Standard
Alaska	Net income	100% of Need Standard
Arizona	Gross income	185% of Need Standard
Arizona	Net income	100% of Need Standard
Arkansas	Net income	100% of Income Eligibility Standard
California	Net income	100% of Minimum Basic Standard of Adequate Care
Colorado	Gross income	185% of Need Standard
Colorado	Net income	100% of Need Standard
Connecticut	Net income	100% of Need Standard
Connecticut	Unearned income	100% of Payment Standard
Delaware	Gross income	185% of Standard of Need
Delaware	Net income	100% of Payment Standard
District of Columbia	Net income	100% of Payment Level
Florida	Gross income	185% of Federal Poverty Level
Florida	Net income	100% of Payment Standard
Georgia	Gross income	185% of Standard of Need
Georgia	Net income	100% of Standard of Need
Hawaii	Gross income	185% of Standard of Need
Hawaii	Net income	100% of Standard of Need
Idaho	No explicit tests
Illinois	Net income	100% of Payment Standard
Indiana	Gross income	185% of Need Standard
Indiana	Net income	100% of Net Income Standard
Iowa	Gross income	185% of Need Standard
Iowa	Net income	100% of Need Standard
Kansas	Net income	100% of Budgetary Standards
Kentucky	Gross income	185% of Standard of Need
Louisiana	Net income	100% of Flat Grant Amount
Maine	Gross income	100% of Gross Income Test
Maryland	Net income	100% of Allowable Payment
Massachusetts	Gross income	185% of Need Standard and Payment Standard
Massachusetts	Net income	100% of Need Standard and Payment Standard
Michigan	No explicit tests
Minnesota	Net income	100% of Transitional Standard
Mississippi	Gross income	185% of Need Standard and Payment Standard
Mississippi	Net income	100% of Need Standard and Payment Standard
Missouri	Gross income	185% of Need Standard
Missouri	Net income	100% of Need Standard
Montana	Gross income	185% of Net Monthly Income Standard
Montana	Net income	100% of Benefit Standard
Nebraska	No explicit tests
Nevada	Gross income	185% of Need Standard
Nevada	Net income	100% of Need Standard
New Hampshire	Net income	100% of Payment Standard
New Jersey [1]	Gross income	150% of Maximum Benefit Payment Schedule
New Mexico	Gross income	85% of Federal Poverty Level
New York	Gross income	185% of Need Standard and 100% of Federal Poverty Level
New York	Net income	100% of Need Standard
North Carolina	No explicit tests
North Dakota	No explicit tests
Ohio	Net income	100% of Allocation Allowance Standard
Oklahoma	Gross income	185% of Need Standard
Oklahoma	Net income	100% of Need Standard
Oregon
All, except JOBS Plus	Gross income	100% of Countable Income Limit
JOBS Plus	Gross income	100% of Food Stamp Countable Income Limit
Pennsylvania	Net income	100% of Family Size Allowance
Rhode Island	No explicit tests
South Carolina	Gross income	185% of Need Standard
South Carolina	Net income	100% of Need Standard
South Dakota	No explicit tests
Tennessee	Gross income	185% of Consolidated Need Standard
Texas	Net income	100% of Budgetary Needs Standard [2]
Texas	Net income	100% of Recognizable Needs [3]
Utah	Gross income	185% of Adjusted Standard Needs Budget
Utah	Net income	100% of Adjusted Standard Needs Budget
Vermont	Gross income	185% of Need Standard
Vermont	Net income	100% of Need Standard
Virginia
VIEW [4]	Gross earnings	100% of Federal Poverty Level
VIEW [4]	Unearned income	100% of Standard of Assistance
All, except VIEW	Gross income	185% of Standard of Need
All, except VIEW	Net income	100% of Standard of Assistance
Washington	Gross earnings	100% of Maximum Gross Earned Income
West Virginia	Gross income	100% of Standard of Need
Wisconsin	Gross income	115% of Federal Poverty Level
Wyoming	No explicit tests
Source: Table I.E.1 Income Eligibility Tests for Applicants, July 2006 from the Urban Institute's Welfare Rules Database.
Notes: "No explicit tests" indicates that either the State imposes no income tests on applicants or the State imposes an income test, but the calculation of the test and disregards allowed for the test are no different from those used to calculate the benefit.
[1] In households where the natural or adoptive parent is married to a non-needy stepparent, the gross household income may not exceed 150 percent of the Federal Poverty Level.
[2] Apply only the $120 disregard for this test.
[3] Apply both the $120 disregard and the 33.3 percent disregard for this test.
[4] Two-parent units' gross earned income must be below 150 percent of the Federal Poverty Level and their unearned income must be below 100 percent of Standard of Assistance.

**Table 12:3**

Eligibility Standards [*]
State	State Name	Amount for a Family of Three
Alabama	Payment Standard	$215
Alaska	Need Standard	$1,311
Arizona	Need Standard	$964
Arkansas	Income Eligibility Standard	$223
California	Minimum Basic Standard of Adequate Care	$891
Colorado	Need Standard	$421
Connecticut	Federal Poverty Level	$1,383
	Need Standard	$745
	Payment Standard	$543
Delaware	2005 Federal Poverty Level	$1,341
	Standard of Need	$1,005
	Payment Standard	$338
District of Columbia	Standard of Assistance	$712
District of Columbia	Payment Level	$379
Florida	Federal Poverty Level	$1,383
Florida	Payment Standard	$303
Georgia	Standard of Need	$424
Hawaii	Standard of Need	$1,140
Idaho	— —	— —
Illinois	Payment Standard	$396
Indiana	Federal Poverty Level	$1,383
	Need Standard	$320
	Net Income Standard	$288
Iowa	Need Standard	$849
Kansas	Budgetary Standards	$429
Kentucky	Standard of Need	$526
Louisiana	Flat Grant Amount	$240
Maine	Gross Income Test	$1,023
Maryland	Allowable Payment	$490
Massachusetts
Exempt	Federal Poverty Level	$1,383
Exempt	Need Standard and Payment Standard	$633
Nonexempt	Federal Poverty Level	$1,383
Nonexempt	Need Standard and Payment Standard	$618
Michigan	— —	—
Minnesota	Federal Poverty Level	$1,383
Minnesota	Transitional Standard	$884
Mississippi	Need Standard and Payment Standard	$368
Missouri	Federal Poverty Level	$1,383
Missouri	Need Standard	$846
Montana	Net Monthly Income Standard	$478
Montana	Benefit Standard	$375
Nebraska	Federal Poverty Level	$1,383
Nevada	Need Standard	$984
New Hampshire	Standard of Need	$2,754
New Hampshire	Payment Standard	$625
New Jersey	Maximum Benefit Payment	$424
New Jersey	Federal Poverty Level	$1,383
New Mexico	Federal Poverty Level	$1,383
New York	Federal Poverty Level	$1,383
New York	Need Standard	$691
North Carolina	— —	—
North Dakota	Standard of Need	$477
Ohio	Allocation Allowance Standard	$980
Oklahoma	Need Standard	$645
Oregon
All, except JOBS Plus	Countable Income Limit	$616
All, except JOBS Plus	Adjusted Income/Payment Standard	$471
JOBS Plus	Food Stamp Countable Income Limit	$1,698
JOBS Plus	Adjusted Income/Payment Standard	$471
Pennsylvania	Need Standard	$587
Pennsylvania	Family Size Allowance	$403
Rhode Island	Cash Assistance Monthly Standard	$554
South Carolina	Need Standard	$670
South Dakota	Payment Standard	$508
Tennessee	Consolidated Need Standard	$963
Texas	Budgetary Needs Standard	$751
Texas	Recognizable Needs	$188
Utah	Adjusted Standard Needs Budget	$568
Vermont	Need Standard	$1,291
Virginia
VIEW	Standard of Need	$322
	Federal Poverty Level	$1,383
	Standard of Assistance	$320
All, except VIEW	Standard of Need	$322
All, except VIEW	Standard of Assistance	$320
Washington	Maximum Gross Earned Income	$1,092
Washington	Need Standard	$1,545
West Virginia	Standard of Need	$991
Wisconsin	Federal Poverty Level	$1,383
Wyoming	Maximum Benefit	$340
Source: Table I.E.3 Eligibility Standards, July 2006 from the Urban Institute's Welfare Rules Database.
Notes: The values in this table represent all standards used during the eligibility process, including those used for grandparent deeming, stepparent deeming, applicant income eligibility tests, and recipient income eligibility tests. See Tables I.D.1, I.D.2, I.E.1, and IV.A.4 in the Welfare Rules Database for more information on how these standards are used. Note that this table provides information on the standards only; to determine how the standards are applied, see the companion tables listed above.
[*] The amounts in the table are based on the following assumptions about the assistance unit: there is one adult and two children; the children are not subject to a family cap; and the unit has no special needs, pays for shelter, and lives in the most populated area of the State.

**Table 12:4**

Maximum Income for Initial Eligibility for a Family of Three, 2006 [1]
State	Maximum Earnings an Applicant Can Receive and Still Be Eligible for Assistance
Alabama	$269
Alaska	$1,401
Arizona	$586
Arkansas	$279
California	$981
Colorado	$511
Connecticut	$835
Delaware	$428
District of Columbia	$567
Florida	$393
Georgia	$514
Hawaii	$1,641 [2]
Idaho	$648
Illinois	$486
Indiana	$378
Iowa	$1,061
Kansas	$519
Kentucky	$909
Louisiana	$360
Maine	$1,023
Maryland	$613
Massachusetts
Exempt	$723
Nonexempt	$708
Michigan	$811
Minnesota	$1,076
Mississippi	$458
Missouri	$558
Montana	$700
Nebraska	$802
Nevada	$1,230
New Hampshire	$781
New Jersey	$636
New Mexico	$1,056 [3]
New York	$781
North Carolina	$681
North Dakota	$1,252
Ohio	$980
Oklahoma	$704
Oregon	$616
Pennsylvania	$493
Rhode Island	$1,278
South Carolina	$670
South Dakota	$724
Tennessee	$1,112
Texas	$401
Utah	$573
Vermont	$1,003
Virginia
VIEW [4]	$1,383
All, except VIEW	$494
Washington	$1,090
West Virginia	$565
Wisconsin	— [4]
Wyoming	$540
Source: Table I.E.4 Maximum Income for Initial Eligibility for a Family of Three, July 2006 from the Urban Institute's Welfare Rules Database.
Note: Initial eligibility is calculated assuming that the unit is employed at application, has only earned income, has no child care expenses, contains one adult and no children subject to a family cap, has no special needs, pays for shelter, and lives in the most populated area of the State.
[1] The values in this table represent the maximum amount of earnings an applicant can have and still be “technically” eligible for assistance in each State. Technical eligibility does not mean that the unit will necessarily receive a cash benefit, but they will have passed all of the eligibility tests and are eligible for some positive benefit. Most States only distribute a cash benefit equaling $10 or more.
[2] Applies to units that have received assistance for no more than two months in a lifetime. For units applying for their third and subsequent months of benefits, the eligibility threshold for a family of three is $1,363.
[3] For purposes of the State's earned income disregard, the adult head is assumed to be working 40 hours a week.
[4] Units with earnings at application will not receive a cash benefit in the State. However, applicants may earn up to $1,590 and still be eligible for nonfinancial assistance.

Treatment of Earnings

PRWORA does not specify how States should treat earnings in calculating TANF benefits. Thus, States have the flexibility to establish rules regarding the treatment of income that best meet their residents' needs. However, as a means to help families transition from welfare to work and to help make work pay, all States (except Wisconsin) disregard a portion of a family's earned income when determining benefit levels (see Table 12:5).

**Table 12:5**

Earned Income Disregards for Benefit Computation
State	Earned Income Disregards
Alabama	100% for first 6 months
Alabama	20% in subsequent months [1]
Alaska	$150 and 33% of the remainder for first 12 months
	$150 and 25% of the remainder in months 13-24
	$150 and 20% of the remainder in months 25-36
	$150 and 15% of the remainder in months 37-48
	$150 and 10% of the remainder in months 49-60
	$150 thereafter
Arizona
All, Except JOBSTART	$90 and 30% of the remainder
JOBSTART	100% of subsidized wages [2]
Arkansas	No disregards--flat grant amount
California	$225 and 50% of the remainder
Colorado	66.7% in first 12 months
	$120 and 33.3% of remainder in next four months
	$120 in next eight months
	$90 thereafter
Connecticut	100% up to the Federal poverty level
Delaware	$120 and 33.3% of remainder in first four months
	$120 in next eight months
	$90 thereafter
District of Columbia	$160 and 66.7% of the remainder
Florida	$200 and 50% of the remainder
Georgia	$120 and 33.3% of the remainder in first 4 months
	$120 in next 8 months
	$90 thereafter
Hawaii	20%, $200, and 36% of the remainder
Idaho	40%
Illinois	66.70%
Indiana	75%
Iowa	20% and 50% of the remainder
Kansas	$90 and 40% of the remainder
Kentucky	100% for 2 months [3]
	$120 and 33.3% of the remainder in next 4 months
	$120 in next 8 months
	$90 thereafter
Louisiana	$1,020 in first 6 months [4]
Louisiana	$120 thereafter
Maine	$108 and 50% of the remainder
Maryland	40%
Massachusetts
Exempt	$120 and 33.3% of remainder
Nonexempt	$120 and 50% of remainder
Michigan	$200 and 20% of the remainder
Minnesota	37% [5]
Mississippi	100% in first 6 months [6]
Mississippi	$90 thereafter
Missouri	66.7% and $90 of remainder in first 12 months
Missouri	$90 thereafter [7]
Montana	$200 and 25% of remainder
Nebraska	20%
Nevada	100% in first 3 months
	50% in months 4-12
	$90 or 20% (whichever is greater) thereafter
New Hampshire	50%
New Jersey	100% in the first month [8]
New Jersey	50% thereafter
New Mexico	All earnings in excess of 34 hours a week, $125, and 50% of remainder in first 24 months
New Mexico	$125 and 50% of remainder thereafter [9]
New York	$90 and 47% of the remainder
North Carolina	100% in first 3 months of employment [10]
North Carolina	27.5% thereafter
North Dakota	$180 or 27% (whichever is greater) and 50% of the remainder in first 6 months
	$180 or 27% (whichever is greater) and 35% of the remainder in months 7-9
	$180 or 27% (whichever is greater) and 25% of the remainder in months 10-13
	$180 or 27% (whichever is greater) and 27% thereafter [11]
Ohio	$250 and 50% of the remainder
Oklahoma	$120 and 50% of the remainder
Oregon	50%
Pennsylvania	50%
Rhode Island	$170 and 50% of the remainder
South Carolina	50% in first 4 months [12]
South Carolina	$100 thereafter
South Dakota	$90 and 20% of the remainder
Tennessee	$150 [13]
Texas	$120 and 90% of the remainder for 4 months [14]
Texas	$120 thereafter
Utah	$100 and 50% of the remainder [15]
Vermont	$150 and 25% of the remainder
Virginia	$134 and 20% of the remainder [16]
Washington	50%
West Virginia	40%
Wisconsin	No disregards--flat grant amount
Wyoming	$200 [17]
Source: Table II.A.1 Earned Income Disregards for Benefit Computation, July 2006 from the Urban Institute's Welfare Rules Database.
[1] The earned income disregard cannot be applied to the earnings of an individual receiving assistance beyond the 60th month under an exemption or extension.
[2] In addition to the 100 percent disregard of all subsidized JOBSTART wages, recipients can also disregard the standard $90 and 30 percent of the remainder for any non-JOBSTART earned income.
[3] Recipients are eligible for the one-time 100 percent disregard if they become newly employed or report increased wages acquired after approval.
[4] The six months in which the extra $900 is disregarded need not be consecutive; however, the recipient may use this extra disregard in no more than six months over the course of his or her lifetime.
[5] This disregard applies to regular TANF recipients with earned income. Different disregards apply during the four-month mandatory diversion program. See Table I.A.1 in the Welfare Rules Database for details.
[6] Recipients are eligible for the one-time 100 percent disregard if they find employment of 35 hours per week within 30 days of either their initial approval for TANF or the beginning of job readiness training. If work is not found, the recipient will never be eligible to receive the disregard again. An additional 100 percent disregard is available to units for three months when the unit's case is subject to closure due to increased earnings and the individual is employed for at least 25 hours a week at the federal minimum wage or higher. The recipient may not have already received the six-month disregard, unless there has been at least a 12-month break in receipt of TANF benefits. The three-month disregard may be received more than once during the 60-month TANF benefit period, provided that there is a period of at least 12 consecutive months in whic h a family does not receive TANF benefits before the family reapplies for assistance. If a recipient marries for the first time, his or her new spouse may receive a one-time, 100 percent disregard for six consecutive months.
[7] These disregards only apply to recipients who become employed while receiving TANF. Applicants and those recipients who gained employment before receiving TANF are allowed to disregard $120 and 33.3 percent of remainder for first four months, $120 next eight months, and $90 thereafter.
[8] The 100 percent disregard is only applicable once every 12 months, even if employment is lost and then regained. Also, applicants are not eligible for the 100 percent disregard in the first month of benefit computation; they may disregard 50 percent of earnings only.
[9] Two-parent units may disregard all earnings in excess of 35 hours a week for one parent and 24 hours a week for the other parent and $225 and 50 percent in the first 24 months. Thereafter, they may disregard $225 and 50 percent of the remainder. The disregard for earnings in excess of the participation requirement only applies to recipients for the first 24 months of benefit receipt, for both single- and two-parent units.
[10] The 100 percent disregard is only available once in a lifetime and may be received only if the recipient is newly employed at a job that is expected to be permanent for more than 20 hours a week.
[11] If a parent marries while receiving assistance, the income of his or her new spouse is disregarded for the first six months. The disregard for the new spouse only applies if his or her needs were not previously included in the unit.
[12] The 50 percent disregard is only available once in a lifetime.
[13] If a parent marries while receiving assistance, and the new spouse's gross income (minus any court-ordered child support) is les s than 185 percent of the Consolidated Need Standard for the entire assistance unit including the spouse, the unit may choose to include the new spouse in the unit. If the spouse is included, all of his or her income is excluded for eligibility purposes and benefit computation. If he or she is not in the unit, all of the spouse’s income and resources are excluded for eligibility and benefit computation.
[14] Once the recipient has received four months (they need not be consecutive) of the 90 percent disregard, he or she is not eligible to receive the disregard again until the TANF case has been denied and remains denied for one full month, and 12 calendar months have passed since the denial. The 12-month ineligibility period begins with the first full month of denial after the client used the fourth month of the 90 percent disregard. Also, the earnings of a TANF recipient's new spouse are disregarded for six months if the total gross income of the budget group does not exceed 200 percent of the Federal Poverty Level.
[15] To be eligible for the 50 percent disregards, the recipient must have received benefits in at least one of the previous four months.
[16] The disregard varies by family size; for one to four family members, the disregard is $134. For five members, the disregard is $157, and for six or more family members $179 may be disregarded.
[17] Married couples with a child in common may disregard $400.

Resource Limits

PRWORA does not specify the total resource or the vehicle asset levels that States are to use to determine eligibility for families. States have the flexibility to set the resource level to determine eligibility that best meets the needs of their residents (see Table 12:6).

**Table 12:6**

Asset Limits for Applicants
State	Asset Limit	Vehicle Exemption
Alabama	$2,000/$3,000 [1]	All vehicles owned by household
Alaska	$2,000/$3,000 [1]	All vehicles owned by household [2]
Arizona	$2,000	All vehicles owned by household [3]
Arkansas	$3,000	One vehicle per household
California	$2,000/$3,000 [1]	$4,650 [F] One vehicle per licensed driver [4][E]
Colorado	$2,000	One vehicle per household
Connecticut	$3,000	9,500 [5][E]
Delaware	$1,000	4,650 [E]
District of Columbia	$2,000/$3,000 [1]	All vehicles owned by household
Florida	$2,000	$8,500 [E]
Georgia	$1,000	$1,500/$4,650 [6][E]
Hawaii	$5,000	All vehicles owned by household
Idaho	$2,000	$4,650 [7][F]
Illinois	$2,000/$3,000/+50 [8]	One vehicle per household [9]
Indiana	$1,000	$5,000 [E]
Iowa	$2,000	One vehicle per household [10]
Kansas	$2,000	All vehicles owned by household [11]
Kentucky	$2,000 [12]	All vehicles owned by household
Louisiana	$2,000	All vehicles owned by household
Maine	$2,000	One vehicle per household
Maryland	$2,000	All vehicles owned by household
Massachusetts	$2,500	$10,000 [E] /$5,000 [13][F]
Michigan	$3,000	All vehicles owned by household
Minnesota	$2,000 [14]	$7,500 [15][E]
Mississippi	$2,000	All vehicles owned by household [16]
Missouri	$1,000	One vehicle per household [17]
Montana	$3,000	One vehicle per household [18]
Nebraska	$4,000/$6,000 [19]	One vehicle per household [20]
Nevada	$2,000	One vehicle per household
New Hampshire	$1,000	One vehicle per licensed driver
New Jersey	$2,000	$9,500 [21][F]
New Mexico	$3,500 [22]	All vehicles owned by household [23]
New York	$2,000/$3,000	$4,650 [24][F]
North Carolina	$3,000	One vehicle per adult
North Dakota	$3,000/$6,000/+25 [25]	One vehicle per household
Ohio	No limit [26]	All vehicles owned by household
Oklahoma	$1,000	5,000 [E]
Oregon	$2,500 [27]	$10,000 [E]
Pennsylvania	$1,000	One vehicle per household [E]
Rhode Island	$1,000	One vehicle per adult [28]
South Carolina	$2,500	One vehicle per licensed driver [29]
South Dakota	$2,000	One vehicle per household [30]
Tennessee	$2,000	$4,600 [E]
Texas	$1,000	$4,650 [31][F]
Utah	$2,000	$8,000 [32][E]
Vermont	$1,000	One vehicle per adult
Virginia	No limit [26]	All vehicles owned by household
Washington	$1,000	$5,000 [32][E]
West Virginia	$2,000	One vehicle per household
Wisconsin	$2,500	$10,000 [E]
Wyoming	$2,500	$15,000 [33][F]
Source: Table I.C.1 Asset limits for applicants, July 2006 from the Urban Institute's Welfare Rules Database, funded by DHHS/ACF and DHHS/ASPE.
[E] Equity value of the vehicle.
[F] Fair market value of the vehicle.
[1] Units including an elderly person may exempt $3,000; all other units exempt $2,000.
[2] Vehicles are exempt if used for one of the following: (1) to meet the family's basic needs, such as getting food and medical care or other essentials; (2) to go to and from work, school, training or work activity (such as job search or community service); (3) as the family's house; (4) to produce self-employment income; or (5) to transport a disabled family member, whether or not they are a part of the assistance unit. If the vehicle does not meet one of these requirements, the equity value of the vehicle is counted in the determination of resources.
[3] Recreational vehicles are not exempt.
[4] Each vehicle must be evaluated for both its equity and fair market value; the higher of the two values counts against the family's asset limit. Before this calculation, all of the following vehicles are completely excluded: (1) used primarily for income producing purposes; (2) produces annual income that is consistent with its fair market value; (3) is necessary for long distance travel that is essential for employment; (4) used as the family's residence; (5) is necessary to transport a physically disabled household member; (6) would be exempt under previously stated exemptions but the vehicle is not in use because of temporary unemployment; (7) used to carry fuel or water to the home and is the primary method of obtaining fuel or water; and (8) the equity value of the vehicle is $1,501 or less. To determine the countable fair market value of each remaining vehicle, exclude $4,650 from the vehicle's fair market value. To determine the countable equity value of each remaining vehicle, exclude one additional vehicle per adult and one additional vehicle per licensed child who uses the vehicle to travel to school, employment, or job search. The full equity value of each remaining vehicle is counted. For each vehicle not completely excluded, the higher of the fair market value or the equity value counts against the family's asset limit.
[5] The unit may exempt $9,500 of the equity value of a vehicle or the entire value of one vehicle used to transport a handicapped person.
[6] If the vehicle is used to look for work, or to travel to work or education and training, the unit may exclude $4,650 of the value. If the vehicle is not used for these purposes, $1,500 of the equity value will be excluded. If the vehicle is used more than 50 percent of the time to produce income or as a dwelling, it is totally excluded.
[7] The value of one specially equipped vehicle used to transport a disabled family member is exempt. Also, all vehicles with a fair market value under $1,500 are exempt.
[8] The asset limit is based on unit size: one person receives $2,000, two people receive $3,000, and three or more people receive another $50 for every additional person.
[9] When there is more than one vehicle, the equity value of the vehicle of greater value is exempt. If a vehicle has special equipment for the disabled, the added value of the special equipment is exempt and does not increase the vehicle's value.
[10] Additionally, $4,435 of the equity value of an additional vehicle is exempt for each adult and working teenager whose resources must be considered in determining eligibility.
[11] Campers and trailers are also considered excludable vehicles.
[12] Only liquid resources are considered for eligibility determinations. Liquid resources include cash, checking and savings accounts, CDs, stocks and bonds, and money market accounts.
[13] The State compares the value of the vehicle to two standards: $10,000 of the fair market value and $5,000 of the equity value. If the value of the vehicle exceeds either limit, the excess counts towards the asset limit; however, if the value of the vehicle exceeds both limits, only the excess of the greater amount counts toward the asset limit.
[14] The assets of a person on active military duty are not counted.
[15] Note that Minnesota uses the loan value of the vehicle as listed in the current NADA Used Car Guide, Midwest edition instead of the fair market value. The loan value is generally slightly less than the estimated fair market value.
[16] Recreational vehicles (unless used as a home), all terrain vehicles (ATVs ), and other off-road vehicles are not exempt. Additionally, industrial vehicles (i.e., heavy haulers, pulpwood trucks, etc.) are exempt as long as they are used for income-producing purposes over 50 percent of the time, or as long as they annually produce income consistent with their fair market value. Determination of whether to count a vehicle is made on a case-by-case basis.
[17] $1,500 of the equity value of the unit's second vehicle is exempt.
[18] All income-producing vehicles or vehicles that are used as a home are also exempt.
[19] The asset limit is based on unit size: one person receives $4,000; two or more people receive $6,000.
[20] The entire vehicle is exempt only if used for employment, training, or medical transportation; any motor vehicle used as a home is also exempt. If a unit has more than one vehicle that meets the exemption criteria, only the vehicle with the greatest equity value will be exempt.
[21] Units with two adults or one adult and a minor child at least 17 years old may exempt up to $4,650 of the fair market value of a second vehicle if it is essential for work, training, or transporting a handicapped individual.
[22] The total limit is $3,500; however, only $1,500 of that amount can be in liquid resources and only $2,000 can be in nonliquid resources. Liquid resources include the (convertible) cash value of life insurance policies, cash, stocks, bonds, negotiable notes, purchase contracts, and other similar assets. Nonliquid resources include non-exempt vehicles, equipment, tools, livestock (with the exception of nonsalable domestic pets), one-time sale asset conversion, and lump-sum payments.
[23] The entire vehicle is exempt only if used for transportation to work, work activities, or daily living requirements. If the vehicle is not used for these purposes, the entire equity value of the vehicle is subject to the asset test.
[24] If the vehicle is needed to seek or retain employment, $9,300 of the vehicle is exempt.
[25] The asset limit is based on unit size: one person receives $3,000, two people receive $6,000, and another $25 is allowed for each additional person thereafter.
[26] The asset test has been eliminated.
[27] There is more than one phase of the application process in Oregon. The asset limit for applicants first applying for TANF is $2,500. If the applicant makes it through the first stage of application, he or she must participate in the "Assessment Program" in which he or she is assessed and given a case plan to follow. If the applicant does not follow the case plan, he or she maintains the $2,500 asset limit as long as he or she is in the Assessment Program. If the applicant complies with the case plan, he or she is allowed a $10,000 asset limit.
[28] Exemptions for adult drivers cannot exceed two vehicles per household. Additionally, the entire value of a vehicle used primarily for income producing purposes, that is used as a family home, or that is used to provide transportation for a disabled family member is exempt.
[29] Vehicles owned by or used to transport disabled individuals, essential to self-employment, income-producing vehicles, and vehicles used as a home are also exempt.
[30] In addition to one primary vehicle, an assistance unit may totally exclude a vehicle used to transport water or fuel to the home when it is not piped in, a vehicle used to transport a disabled member or SSI recipient in household, or a vehicle used in producing income or as a home; an assistance unit may also exclude $4,650 of the fair-market value of a vehicle used to transport members of the unit for education or employment.
[31] $4,650 is exempt for each vehicle owned by a TANF-certified or disqualified household member. All licensed vehicles used for income-producing purposes or for transporting a disabled household member are exempt. Leased vehicles are exempt as long as the title is in the leasing company's name.
[32] The entire equity value of a vehicle used to transport a disabled household member is also exempt.
[33] The $15,000 exemption applies to one vehicle for a single-parent unit. A married couple may split the exemption between two cars.

Benefits

States are free to set the benefit levels that apply under their TANF programs. Many States have modified their benefit levels since 1996, and changes to State benefit levels are shown below in Table 12:7.

**Table 12:7**

Maximum Monthly Benefit for a Family of Three with No Income
State	1996	1999	2003	2006
Alabama	$164	$164	$215	$215
Alaska	$923	$923	$923	$923
Arizona	$347	$347	$347	$347
Arkansas	$204	$204	$204	$204
California	$596
Nonexempt		$626	$704	$704
Exempt		$699	$786	$786
Colorado	$356	$356	$356	$356
Connecticut	$543	$543	$543	$543
Delaware	$338	$338	$338	$338
District of Columbia	$415	$379	$379	$407
Florida	$303	$303	$303	$303
Georgia	$280	$280	$280	$280
Hawaii	$712	$570 [1]	$570 [1]	$570 [1]
Idaho	$317	$276	$309	$309
Illinois	$377	$377	$396	$396
Indiana	$288	$288	$288	$288
Iowa	$426	$426	$426	$426
Kansas	$429	$429	$429	$429
Kentucky	$262	$262	$262	$262
Louisiana	$190	$190	$240	$240
Maine	$418	$461	$485	$485
Maryland	$373	$399	$473	$490
Massachusetts
Exempt	$579	$579	$633	$633
Nonexempt	$565	$565	$618	$618
Michigan	$459	$459	$4,59 [2]	$489
Minnesota	$532	$532	$532	$532
Mississippi	$120	$170	$170	$170
Missouri	$292	$292	$292	$292
Montana	$425	$469	$507	$442
Nebraska	$364	$364	$364	$364
Nevada	$348	$348	$348	$348
New Hampshire	$550	$550	$625	$625
New Jersey	$424	$424	$424	$424
New Mexico	$389	$439	$389	$389
New York	$577	$577	$577	$691
North Carolina	$272	$272	$272	$272
North Dakota	$431	$457	$477	$477
Ohio	$341	$362	$373	$410
Oklahoma	$307	$292	$292	$292
Oregon	$460	$503	$503	$514
Pennsylvania	$403	$403	$403	$403
Rhode Island	$554	$554	$554	$554
South Carolina	$200	$201	$205	$240
South Dakota	$430	$430	$483	$508
Tennessee	$185	$185 [3]	$185 [3]	$185 [3]
Texas	$188	$188	$213	$223
Utah	$426	$451	$474	$474
Vermont	$597	$622	$639	$640
Virginia	$291	$291	$320	$320
Washington	$546	$546	$546	$546
West Virginia	$253	$303	$453	$340
Wisconsin
W-2 Transition		$628	$628	$628
Community Service Jobs		$673	$673	$673
Trial Jobs/Unsubsidized Employment		---- [4]	---- [4]	---- [4]
Wyoming	$360	$340	$340	$340
Mean [5]	$394	$399	$415	$417
Median [5]	$377	$379	$396	$396
Source: Table L5 Maximum Monthly Benefit for a Family of Three with No Income, 1996-2006 (July) from the Urban Institute's Welfare Rules Database, funded by DHHS/ACF and DHHS/ASPE.
Note: Maximum benefits are calculated assuming that the unit contains one adult and two children who are not subject to a family cap, has no special needs, pays for shelter, and lives in the most populated area of the State.
[1] Applies to units that have received assistance for two or more months in a lifetime. For units applying for their first or second months of benefits, the maximum monthly benefit for a family of three is $712.
[2] Applies to units that have at least one employable adult. For units where all adults either receive SSI or are exempt from work requirements for reasons other than caring for a child under three months old, the maximum monthly benefit for a family of three is $477.
[3] For units where the caretaker is over 60, disabled, caring full-time for a disabled family member, or excluded from the assistance unit, the maximum monthly benefit for a family of three is $232.
[4] The benefits in these components are based on the wages earned by individual recipients.
[5] The calculations only include one value per State (the policy affecting the largest percent of the caseload).

Work Requirements

Under TANF, parents or caretakers must engage in work (as defined by the State) when determined ready, or no later than 24 months, whichever is earlier. States have the option to exempt single parents with children up to one year of age from work requirements, and to disregard them from the calculation of the work participation rates for a cumulative lifetime total of 12 months. States have the flexibility to provide exemptions to other families. However, all other families with an adult or minor head of household are included in the State's participation rate calculations. State policies regarding work are listed in Table 12:8 below.

**Table 12:8**

Work-Related Activity Requirements for Single-Parent Head of Unit [1]
State	Timing of requirement to benefit receipt	Allowable activities listed [2]	Minimum hour requirement	Limit on hours allowed for education and training
Alabama	Immediately	All	32 [3]	7 [4]
Alaska	Immediately	All	30	—
Arizona				—
All, except JOBSTART	Immediately	Job-related, E&T, and CWEP	Case-by-case basis	—
JOBSTART	Immediately	Subsidized employment	40	—
Arkansas	Immediately	All	30	—
California	Immediately	All [5]	32	— [6]
Colorado [7]	*	All [5]	22	—
Connecticut	Immediately	All except postsecondary education and subsidized employment	Case-by-case basis	—
Delaware	Immediately	Education, Job-related and CWEP [8]	Case-by-case basis [8]	5
District of Columbia	Immediately	All	30 [3]	10 [9]
Florida	Immediately	All except postsecondary education	30 [10]	10
Georgia	Immediately	All	30 [11]	10
Hawaii	Immediately	All except postsecondary education	32	—
Idaho	Immediately	All except postsecondary education [12]	30	—
Illinois	After assessment	All	30	—
Indiana	Immediately	All except postsecondary education	Case-by-case basis	—
Iowa	Immediately	All except subsidized employment	Full-time employment [13]	—
Kansas	Immediately	All	30	10
Kentucky	Immediately	All	30	10
Louisiana	Immediately	All [5]	30	10
Maine	Immediately	All	30 [3]	10 [14]
Maryland	Immediately	All	40	16
M]assachusetts				—
Exempt [15]	—	—	—	—
Nonexempt	60 days	All	24 [16]	—
Michigan	Immediately	All	40	10 [17]
Minnesota	Immediately	All	30 [3]	10 [18]
Mississippi	24 months	All except subsidized employment	30 [19]	5
Missouri	24 months	All	30 [3]	—
Montana	Immediately	All except subsidized employment	30	10
Nebraska				—
Time limited assistance	Immediately	All	30	—
Non-time limited assistance	Immediately	Job-related	20	—
Nevada	Immediately	All	30 [3]	10 [9]
New Hampshire				—
New Hampshire Employment Program	Immediately	All except subsidized employment [5]	25 [20]	—
Family Assistance Program [15]	—	—	—	—
New Jersey	Immediately	All	40	—
New Mexico				—
New Mexico Works Program	3 months after approval	All	34 [21]	In excess of 20 hours
Educational Works Program	[*]	All [22]	20	—
New York	30 days after orientation	High school not complete: E&T	Full-time as defined by school	—
New York	30 days after orientation	High school complete: All	30 [3]	10 [14]
North Carolina	12 weeks	All	35 [3]	15 [14]
North Dakota	Immediately	All	Case-by-case basis	—
Ohio	Immediately	All	20	—
Oklahoma	Immediately	All except postsecondary education	30	—
Oregon				—
JOBS	Immediately	All except subsidized employment [5]	Case-by-case basis	—
JOBS Plus [23]	[*]	E&T and employment	40	—
Pennsylvania	Immediately	All except postsecondary education [5]	20	—
Rhode Island	Immediately	All [24]	30 [3]	—
South Carolina				—
All, except STAR	Immediately	All except subsidized employment	30 [3]	—
STAR (A)	Immediately	All	Case-by-case basis	—
STAR (B and C) [15]	—	—	—	—
South Dakota	Immediately	All	30 [3]	10 [25]
Tennessee	After assessment	All except subsidized employment	40	20
Texas	After orientation	All [5]	30 [3]	10 [9]
Utah	Immediately	All except subsidized employment	Case-by-case basis	—
Vermont	Immediately	All [5]	30 [3]	—
Virginia				—
VIEW	Immediately	All	30	—
All except VIEW	—	—	—	—
Washington	Immediately	All	32	—
West Virginia	24 months	All	30 [3]	—
Wisconsin				—
W-2 Transition	After assessment	Job-related, E&T, and community service	40	12
Unsubsidized Employment	After assessment [26]	Job-related and employment	40	—
Trial Jobs	After assessment	Subsidized employment	40	—
Community Service Jobs	After assessment	Job-related and E&T	40	10
Wyoming	Immediately	All	30 [27]	In excess of 20 hours
Source: Table III.B.2 Work-Related Activity Requirements for Single-Parent Head of Unit from the Urban Institute's Welfare Rules Database, funded by DHHS/ACF and DHHS/ASPE.
1 The table contains the activity requirements for single-parent recipients 21 years old or older.
2 All possible activities include: (a) Job-related activities include one or more of the following: job skills training, job readiness activities, job development and placement, job search (b) Education and training (E&T) activities include one or more of the following: basic or remedial education, high school/GED, English as a second language, postsecondary education, on-the-job training (c) Employment activities include one or more of the following: unsubsidized job, work supplement/subsidized job, CWEP/AWEP, community service.
3 The hours apply to recipients with children age six or older. Recipients with children under six years old are required to work 20 hours.
4 Generally, recipients are required to participate in either job-related or employment activities for at least 25 hours per week. However, on a case-by-case basis, the caseworker may determine that educational activities are necessary for a recipient to overcome barriers to employment. In these cases, the limit on the number of hours that may be spent in education may be waived.
5 According to the State manuals, recipients move from one set of activities to another after a set period of time. Generally, they begin with job-related activities and end with employment; see the WRD for details.
6 Non- exempt recipients who are already enrolled in an undergraduate program can participate in education for their entire requirement.
7 Counties have the option to vary their activity requirements. These policies refer to Denver County.
8 The hours requirement is 10 hours a week of job search plus participation in CWEP up to the number of hours equal to the benefit amount divided by the minimum wage. If the recipient is working 20 hours or more a week in an unsubsidized job, no additional work requirements apply.
9 These hours apply to recipients with children age six or older. Recipients with children under six years old must spend all required hours in non-education related activities.
10 On-the-job training and work supplementation require a full-time (32 to 40 hour) commitment.
11 When the agency determines it possible, the recipient must participate for a minimum of 40 hours a week.
12 Recipients with children under the age of 12 weeks are only required to participate in life skills training.
13 Participation must be either equivalent to the level of commitment required for full-time employment or deemed significant enough to move the recipient toward the level of full-time employment.
14 These hours apply to recipients with children age six or older. The number of hours which may be spent in education and training is not capped for parents of children less than six years old.
15 Recipients in this component are not required to participate in work activities (see Appendix 1 for a description of components).
16 Th is requirement applies to parents whose youngest child is between mandatory school age and nine years old. If the youngest child in the assistance unit is at least nine years old, 30 hours per week are required. If the youngest child is between age two and mandatory full-time school age, 20 hours per week are required. (Parents with children less than two years old are placed in the Exempt component and do not have work requirements).
17 High School and GED education is available for up to 10 hours per week if the remaining participation hours come from unsubsidized employment. Post-secondary education or training is available for 10 hours if at least 10 hours per week is spent in unsubsidized employment. Otherwise, participation in educational activities is limited to five hours per week.
18 To be eligible for education and training, the recipient must be working at least 20 hours per week in unsubsidized employment.
19 The hours apply to recipients with children age six or older. Recipients with children under age six are required to work 20 hours. An individual must participate in educational programs (including vocational training) full time as defined by the school, and in job search/job readiness (combined) for 40 hours a week.
20 The hours apply to recipients with children age six or older. Recipients with children under six years old are required to work 20 hours. Beginning in month 40, the hours requirement is increased to 30 hours a week for all recipients with children age six or older.
21 Recipients with children under age six may not be required to work more than 24 hours a week.
22 Educational Works Program activities are focused on education and training; however, with program approval, participants may also participate in any other activity relevant to their education and pursuant to the New Mexico Works Cash Assistance Program.
23 Recipients volunteer for the JOBS Plus program. This program provides on-th e-job training, while paying benefits as wages from a work-site assignment.
24 For the first 24 months of benefit receipt, recipients may spend all required activity hours in education and/or training. For parents with children under the age of six, this is 20 hours. After 24 months of assistance, educational activities no longer count towards the participation requirement. According to the State manuals, recipients move from one set of activities to another after a set period of time. Generally, they begin with job-related activities and end with employment; see the WRD for details.
25 These hours apply to recipients with children age six or older. The number of hours which may be spent in education and training is not capped for parents of children less than six years old. Individuals who have earned a high school diploma may participate in postsecondary education for up to 15 hours per week.
26 Recipients participating in unsubsidized jobs receive wages and are ineligible for a cash benefit.
27 The State stressed that recipients are required to work 40 hours a week, but in cases where the recipient is unable to work the full 40 hours, caseworkers can scale back the number of hours to a minimum of 30 hours per week. For recipients with children under age six, the minimum is 20 hours per week.

States Claiming Continuing Waiver Inconsistencies with Respect to Work Requirements

A State may have received a waiver to modify its work requirements under the former Aid to Families with Dependent Children program (AFDC) program. To the extent that the Federal TANF work requirements are inconsistent with the State's waiver work requirements, the State may be allowed to follow its approved waiver policy rather than the Federal TANF policy, until expiration of the waiver. The TANF final rules required States to file a certification with HHS by October 1, 1999 if they intended to follow inconsistent waiver policies (see Table 12:9). The following States had a waiver in effect during FY 2004, FY 2005, or FY 2006.

**Table 12:9**

Work-Related Waivers
State	Waiver Duration	Waiver Content
Hawaii	30-Sep-04	Work Participation Rate (Exemption) and (Hours--subset of Cases), JOBS, Additional Job Search, Education, All Hours
Massachusetts	30-Sep-05	Sanctions, Work Participation Rate (Exemption) and (Hours), JOBS, Job Search, Education, All Hours
Montana	31-Dec-03	Sanctions (subset of cases, JOBS, Job Search, Education, All Hours (subset of cases)
Ohio	31-Dec-03	Sanctions and Work Participation Rate (Exemption)--All Waiver Conditions Limited to Pregnant and Parenting Teens
Tennessee	30-Jun-07	Work Participation Rate (Exemption) and (Hours--subset of cases), Additional Job Search, Education, All Hours

Other Provisions

Sanction Policies

If an individual in a family receiving assistance refuses to engage in required work, a State has the option to either reduce or terminate the amount of assistance payable to the family, subject to good cause (see Table 12:11). (For subsequent sanctions, many progress to full-family sanctions).


State	Initial Sanction:		Most Severe Sanction:
Table 12:11 Sanction Policies for Noncompliance with Work Requirements for Single-Parent Head of Unit
State	Reduction in Benefit	Length of Sanction (Months)	Reduction in Benefit	Length of Sanction (Months)
Alabama	50% [1]	3 months[+][1]	Entire benefit	12 months
Alaska	40% of the maximum payment	4 months[+]	Case is closed	Must reapply
Arizona	25%	1 month	Entire benefit	1 month[+]
Arkansas	25%	Until in compliance for 2 weeks	Case is closed [2]	Until in compliance for 2 weeks
California	Adult portion of benefit	Until compliance	Adult portion of benefit	6 months[+]
Colorado [3]	25%	1 month	Entire benefit	3 months[+]
Connecticut	25%	3 months[+]	Case is closed	3 months and must reapply
Delaware	33.30%	Until compliance or 2 months (whichever is shorter)	Entire benefit	Permanent
District of Columbia	Adult portion of benefit	Until compliance	Adult portion of benefit	6 months[+]
Florida	Entire benefit	10 days[+]	Entire benefit	3 months[+][4]
Georgia	25%	3 months	Entire benefit	12 months and must reapply
Hawaii	Entire benefit	Until compliance	Entire benefit	3 months[+]
Idaho	Entire benefit	1 month[+]	Entire benefit	Permanent
Illinois	50% [5]	Until compliance	Entire benefit	3 months[+]
Indiana	Adult portion of benefit	Until compliance or 2 months (whichever is shorter)	Case is closed	Until compliance
Iowa	Entire benefit	Must reapply	Entire benefit	6 months[+][6]
Kansas	Entire benefit	Until compliance	Entire benefit	2 months[+]
Kentucky	Pro rata portion of benefit	Until compliance [7]	Entire benefit	Until compliance
Louisiana	Case is closed	1 month[+]	Case is closed	3 months[+]
Maine	Adult portion of benefit	Until compliance	Adult portion of benefit	6 months[+]
Maryland	Entire benefit	Until compliance	Entire benefit	Until in compliance for 30 days
Massachusetts
Exempt [8]	—	—	—	—
Nonexempt	None [9]	None [9]	Entire benefit	Until in compliance for 2 weeks
Michigan	Entire benefit	1 month[+]	Entire benefit	1 month[+]
Minnesota	10% of the Transitional Standard	1 month[+]	Case is closed	1 month[+]
Mississippi	Entire benefit	2 months[+]	Entire benefit	Permanent
Missouri	25%	Until compliance	25%	3 months[+]
Montana	Adult portion of benefit [10]	1 month	Case is closed	1 month
Nebraska	Entire benefit	1 month[+]	Entire benefit	12 months or the remainder of 48 months (whichever is shorter)
Nevada	Entire benefit	Until compliance	Entire benefit	Until compliance
New Hampshire
New Hampshire Employment Program	Adult portion of benefit	1 payment period[+]	66% of adjusted Payment Standard [11]	1 payment period[+]
Family Assistance Program [8]	—	—	—	—
New Jersey	Pro rata portion of benefit [12]	1 month[+]	Case is closed [12]	3 months[+]
New Mexico
New Mexico Works Program	25%	Until compliance	Case is closed	6 months[+]
Educational Works Program	None [13]	None [13]	Participation is terminated [14]	[*]
New York	Pro rata portion of benefit	Until compliance	Pro rata portion of benefit	6 month[+]
North Carolina	Entire benefit	1 month[+]	Case is closed [12]	Must reapply
North Dakota	Adult portion of benefit [15]	Until compliance	Case is closed [15]	12 months
Ohio	Entire benefit	1 month[+]	Case is closed	6 months[+]
Oklahoma	Entire benefit	Until compliance	Entire benefit	Until compliance
Oregon	$50	Until compliance or 2 months (whichever is shorter)	Entire benefit	Until compliance
Pennsylvania	Adult portion of benefit [16]	30 days[+]	Entire benefit [17]	Permanent
Rhode Island	Adult portion of benefit [18]	Until in compliance for 2 weeks	Entire benefit	Until in compliance for 2 weeks
South Carolina
All, except STAR	Case is closed	Must reapply and comply for 30 days	Case is closed	Must reapply and comply for one month
STAR (A)	Adult portion of benefit	Until compliance	Adult portion of benefit	Until compliance
STAR (B and C) [8]	—	—	—	—
South Dakota	None [9]	None [9]	Case is closed	1 month[+] and must reapply
Tennessee	Entire benefit	Until in compliance for 2 weeks	Entire benefit	3 months[+]
Texas	Entire benefit	1 month[+]	Case is closed	Must reapply and comply for 30 days
Utah	$100 [19]	Until compliance	Entire benefit [20]	Until compliance
Vermont	$75	Until in compliance for 2 weeks	$225	Until in compliance for 2 weeks
Virginia
VIEW	Entire benefit	1 month[+]	Entire benefit	6 months[+]
All, except VIEW [8]	—	—	—	—
Washington	Adult portion of benefit or 40% (whichever is greater)	Until in compliance for 4 weeks	Adult portion of benefit or 40% (whichever is greater)	Until in compliance for 4 weeks [21]
West Virginia	33.30%	3 months	Entire benefit	3 months
Wisconsin
W-2 Transition and Community Service Jobs	Minimum wage times the number of hours of nonparticipation	Until compliance	Entire benefit	Permanent [22]
Unsubsidized Employment	—	—	—	—
Trial Jobs	Decrease in wages [23]	Until compliance [23]	Entire earnings	Permanent [22]
Wyoming	Entire benefit	Until compliance	Entire benefit	Until compliance
Source: Table III.B.3 Sanction Policies for Noncompliance with Work Requirements for Single-Parent Head of Unit, July 2006 from the Urban Institute's Welfare Rules Database, funded by DHHS/ACF and DHHS/ASPE.
Note: "Adult portion of benefit" describes the portion of the benefit the sanctioned individual would have received. Since the table only represents sanctions for single-parent adults, in all cases the sanctioned individual is an adult.
[+] The unit is sanctioned for the specified number of months or until the sanctioned individual complies with the activity requirements, whichever is longer.
* Data not obtained.
[1] This sanction applies to noncompliance that occurs during the first 24 months of assistance. For noncompliances that occur after the first 24 months, the entire unit is ineligible for benefits for one month.
[2] For the seventh and subsequent months of noncompliance, the caseworker has discretion to either reduce the unit's benefits by 50 percent or close the case. If the case is closed, the unit may reapply for their full benefits, but the application will be pending until the unit has complied with requirements for two weeks.
[3] Counties have the option to determine the amount and duration of sanctions. These policies refer to Denver County.
[4] Cash assistance may still be provided to the children in the unit who are under age 16; these benefits are issued to a protective payee.
[5] If noncompliance continues after three months of reduced benefits, the entire unit is ineligible for benefits until compliance.
[6] The sanctioned parent must also sign a family investment agreement and complete 20 hours of eligible education or work activities to become eligible again. The sanction continues until the parent fully complies.
[7] A caseworker's judgment may be used to determine whether the unit must be in compliance for two weeks before regaining benefits.
[8] Recipients in this component are not required to participate in work activities; therefore, they have no sanctions (see Appendix 1 for a description of components).
[9] The initial sanction does not reduce benefits. Recipients are given a written warning detailing the consequences of subsequent failures to comply.
[10] If noncompliance continues for more than a month after the end of the sanction period, the case is closed for noncompliance. The unit may reapply for benefits after a one-month period of ineligibility.
[11] The adjusted Payment Standard refers to the new benefit amount once the adult portion is removed. Additionally, the recipient must participate in an assessment of barriers to participation. If barriers are found, the recipient’s training and support program is revised accordingly. If no barriers are found, financial assistance is terminated for the entire unit.
[12] If noncompliance continues after three months, the case is closed and the unit must reapply for further assistance.
[13] The individual is placed on probationary status for the following school term to improve GPA or meet the educational institution's standards.
[14] At the end of the probationary period, if standards have not been met or an overall GPA of 2.5 has not been achieved, the department may take action to terminate an individual's participation in the Educational Works Program.
[15] If the adult is noncompliant for one month or less, only the adult portion of the benefit is removed. If noncompliance continues after one month of reduced benefits, the case is closed.
[16] This sanction applies to noncompliance that occurs during the first 24 months of assistance. For noncompliances that occur after the first 24 months, the entire unit is ineligible for benefits for thirty days or until compliance, whichever is longer.
[17] This sanction applies to noncompliance that occurs after the first 24 months of assistance. For noncompliances that occur within the first 24 months of assistance, the needs of the sanctioned individual are permanently excluded for benefit calculation.
[18] In a two-person unit, the adult portion is equal to the difference between the benefit a family of three would have received and the benefit the two-person family actually received. For all other family sizes, the adult portion is computed normally, using the difference between the family's current monthly benefit and the monthly benefit for a family size excluding the sanctioned adult.
[19] If noncompliance continues after one month of reduced benefits, the entire unit is ineligible for benefits until compliance.
[20] The entire unit is ineligible if the adult is in noncompliance for two or more months. If the adult is noncompliant for less than two months, only $100 of the benefit is removed.
[21] The sanction remains in effect until the individual is compliant for four weeks; after four weeks of compliance, benefits are restored to their pre-sanction level and the individual is paid retroactively for the four weeks of compliance.
[22] If a recipient refuses to participate in an activity for the third time, the unit is ineligible to receive benefits in that component for life. The unit may receive benefits again if it becomes eligible for a different component (see Appendix 1 for a description of components).
[23] If a recipient has an unplanned and/or unexcused absence, the Trial Jobs employer has the discretion to decrease the recipient's wages. If a Trial Jobs recipient completely refuses to participate in the Trial Jobs component, he or she receives two warnings from the TANF agency and then becomes ineligible for the Trial Jobs component for life.

Diversion Payments

The majority of States now offer applicant diversion assistance to families as an alternative to ongoing TANF assistance. Generally, this assistance comes in the form of benefit payments designed to provide short-term financial assistance to meet critical needs in order to secure or retain employment.

Typically, States provide several months of benefits in one lump sum. A few States provide a flat amount. By accepting the diversion payment, the family generally agrees not to re-apply for cash assistance for a specified period of time, e.g., receipt of a diversion payment equal to three months of benefits results in family agreeing to not re-apply for benefits for three months. A number of diversion programs provide applicant job search, other services, and/or referral to alternative assistance programs. (Table 12:12 highlights what TANF diversion programs the States administer).

**Table 12:12**

Formal Diversion Payments [1]
State	Diversion program	Maximum diversion payment [1]	Form of Payment	How Often Recipient Can Receive Maximum Payment	Period of TANF Ineligibility Without Penalty After Payment	Payment Counts Toward the Time Limit
Alabama	No	—	—	—	—	—
Alaska	Yes	3 months [2]	Vendor or cash payment	Four times in a lifetime, but no more than once every 12 months	3 months [3]	No
Arizona	Yes [4]	3 months	Cash payment	Once every 12 months	3 months [5]	No
Arkansas	Yes	3 months	Cash loan [6]	Once in a lifetime	100 days	No [6]
California [7]	Yes [8]	Varies [9]	Cash payment or services [10]	As often as needed, up to $4,000 annual and $10,000 lifetime	Immediately eligible	Varies [11]
Colorado [12]	Yes	$1,000 [13]	Vendor or cash payment	Twice in a lifetime [14]	Determined by caseworker and client	No [15]
Connecticut	Yes	3 months	Cash payment	Three times in a lifetime, but no more than once every 12 months	3 months	Yes
Delaware	Yes [16]	$1,500	Vendor payment	Once every 12 months	Varies [17]	No
District of Columbia	Yes [18]	3 months	Vendor or cash payment	Once every 12 months	Diversion payment divided by the monthly benefit the unit would receive	No
Florida	Yes [19]	Varies [19]	Cash payment	Varies [19]	Varies [19]	Varies [19]
Georgia	Yes [20]	4 months	Cash payment	Once in a lifetime	12 months	No [21]
Hawaii	Yes	8 months	Cash payment	Once in 60 months	Varies [22]	No
Idaho	Yes	3 months [23]	Cash payment	Once in a lifetime	Twice the number of months included in the payment	Yes
Illinois	Yes [24]	Varies [25]	Cash payment	Once in a lifetime	Determined by caseworker	No
Indiana	No	—	—	—	—	—
Iowa	Yes [26]	$2,000	Vendor payment	Once every 12 months [27]	Twice the number of days included in the payment [28]	No
Kansas	No	—	—	—	—	—
Kentucky	Yes	$1,300	Vendor payment	Twice in a lifetime, but no more than once every 24 months	12 months	No
Louisiana	No [29]	—	—	—	—	—
Maine	Yes [30]	3 months	Vendor payment	Once in a lifetime	3 months [31]	No
Maryland	Yes	3 months	Cash payment	As often as needed	The number of months included in the payment	No
Massachusetts	No	—	—	—	—	—
Michigan	No	—	—	—	—	—
Minnesota	Yes [32]	Varies [33]	Vendor and cash payments	Once every 12 months	4 months [34]	No
Mississippi	No	—	—	—	—	—
Missouri	No	—	—	—	—	—
Montana	No	—	—	—	—	—
Nebraska	No	—	—	—	—	—
Nevada	No	—	—	—	—	—
New Hampshire	No	—	—	—	—	—
New Jersey	Yes [35]	$1,550 [36]	Cash payment	As often as needed [36]	Immediately eligible [37]	No
New Mexico	Yes [38]	$1,500	Cash payment	Twice in a lifetime	12 months [39]	No
New York	Yes [40]	Varies [25]	Vendor or cash payment [25]	Once in a lifetime	Immediately eligible	No
North Carolina	Yes	3 months	Cash payment	Once every 12 months	Immediately eligible	No
North Dakota	No	—	—	—	—	—
Ohio	No	—	—	—	—	—
Oklahoma	Yes [38]	3 months	Vendor payment	Once in a lifetime	12 months	No
Oregon	No	—	—	—	—	—
Pennsylvania	Yes [41]	3 months	Cash payment	Once every 12 months	Immediately eligible	No
Rhode Island	Yes [42]	3 months	Cash payment	Once in a lifetime	6 months [43]	No
South Carolina	No	—	—	—	—	—
South Dakota	Yes	2 months	Vendor or cash payment	As often as needed [44]	3 months [5]	No
Tennessee	No	—	—	—	—	—
Texas	Yes [45]	$1,000	Cash payment	Once every 12 months	12 months	No
Utah	Yes	3 months	Cash payment	As often as needed	3 months [5]	Yes [46]
Vermont	No	—	—	—	—	—
Virginia	Yes	4 months	Vendor or cash payment	Once every 60 months	160 days	No
Washington	Yes	$1,500	Cash payment	Once every 12 months	12 months [47]	No
West Virginia	Yes	3 months	Cash payment	Once in a lifetime	3 months	No [48]
Wisconsin	Yes [49]	$1,600	Cash loan	Once every 12 months [50]	Immediately eligible	No
Wyoming	No	—	—	—	—	—
Source: Table I.A.1 Formal Diversion Payments, July 2006 from the Urban Institute's Welfare Rules Database, funded by DHHS/ACF and DHHS/ASPE.
[1] The Maximum Diversion Payment is either a flat payment, regardless of the family's size and the State's maximum benefit (represented in the table by a dollar amount), or a multiple of the maximum benefit the family would have received if it were receiving monthly TANF benefits (represented in the table by a number of months of benefits the family could receive). Note that if the State provides diversion payments based on a multiple of the maximum benefit, the amount will vary by the family size and the generosity of the State's maximum benefits.
[2] Additional diversion assistance can be issued if unexpected circumstances arise after the initial diversion payment has been issued. To qualify, the family must not have received the full amount of diversion for which they were initially eligible. If so, supplemental payments may be made to meet the additional short-term needs up to the total remaining balance.
[3] The entire payment is prorated over three months and counted as income if the unit applies for benefits within three months of receiving a payment.
[4] To be eligible, applicants must be attempting to obtain employment or have an offer of employment. Applicants must also have a short-term verified financial need that is a barrier to achieving self-sufficiency, such as needing car repairs, child care, work clothes, overdue housing expenses, or transportation assistance. Once assistance is approved, all child support payments received on behalf of the children in the unit are passed through to the unit during the diversion period.
[5] If the unit applies for benefits during the three-month ineligibility period, the unit must repay the diversion payment. The payment will be prorated over a three-month period and the amount of the repayment will be deducted from the unit's monthly assistance payment.
[6] The diversion payment is considered a loan; therefore the recipient must pay back any amount borrowed. Any amount paid back will not count toward the time limit; however, if all or a portion of the amount has not been repaid, the months will count.
[7] Counties have the option to vary their diversion programs. These policies refer to Los Angeles County.
[8] Diversion assistance is only offered to applicants.
[9] The maximum diversion cash payment is the greater of $2,000 or three times the Maximum Aid Payment for the family size. In cases where an applicant has a one-time expense that exceeds the standard maximum diversion payment, payments up to $4,000 may be issued if necessary to retain self-sufficiency.
[10] Diversion services may be made in the form of cash, vendor, or non-cash services. Diversion has been used to provide payments and services for child and dependent care, clothing, housing deposit, medical expenses, work supports pending receipt of employment income, tools or other items for employment, transportation, payments for automobile repairs, and payment of utility bills.
[11] If the unit applies for monthly TANF benefits after the diversion period (diversion amount divided by the Maximum Aid Payment) ends, the State counts one month toward the time limit. If the unit applies during the diversion period, it can choose to count the diversion payment toward the time limit, or repay the diversion amount at a rate of 10 percent of the monthly benefit each month until the diversion is repaid. The number of months counted toward the 60-month time limit is calculated by dividing the total diversion payment by the Maximum Aid Payment for the apparently eligible assistance unit at the time the diversion payment was made. The month(s) resulting from the calculation less any partial month, is (are) counted toward the 60-month time limit.
[12] Counties have the option to vary their diversion programs. These policies refer to Denver County.
[13] If assistance greater than $1,000 is requested, it must be approved by a designated staffing team. If an individual is seeking employment and training services through the mayor's Office of Workforce Development, there will be no limit to the amount of money issued.
[14] If an individual is seeking employment and training services through the mayor's Office of Workforce Development, there will be no limit to the number of diversion applications approved.
[15] If the payment is intended to cover greater than 120 days worth of need, the additional time counts towards the time limit. If an individual is seeking employment and training services through the mayor's Office of Workforce Development, there will be no time frame for how long services can be provided.
[16] The State's diversion program is related to retaining or obtaining employment and is only for parents living with natural or adopted children.
[17] The period of ineligibility depends on the amount of the diversion payment. Units receiving $1-500.99 are ineligible for one month, units receiving $501-1,000.99 are ineligible for two months, and units receiving $1,001-$1,500 are ineligible for three months.
[18] If a TANF applicant is qualified for diversion but did not apply, a case worker will discuss diversion with the applicant, and if appropriate, recommend it over TANF.
[19] Florida has three separate diversion programs. An assistance unit may receive a one-time payment of up to $1,000 in Up-Front Diversion or Relocation Assistance, up to the amount needed to relocate, or a one-time $1,000 payment of Cash Severance Diversion. The unit is ineligible to receive assistance for three months after receiving Up-Front Diversion and for six months after receiving Relocation Assistance or Cash Severance Diversion. Up-Front Assistance is for individuals in need of assistance due to unexpected circumstances or emergency situations. Relocation Assistance is available for individuals who reside in an area with limited employment opportunities and experience one of the following: geographic isolation, formidable transportation barriers, isolation from extended family, or domestic violence that threatens the ability of a parent to maintain self-sufficiency. Cash Severance Diversion is available to TANF recipients if they meet the following criteria: are employed and receiving earnings; are able to verify their earnings; will remain employed for at least six months; have received cash assistance for at least six consecutive months since October 1996; and are eligible for at least one more month of TANF. Up-Front Diversion and Relocation Assistance do not count toward time limits. Cash Severance Diversion does not count toward time limits if the payment is made in a month in which the unit also receives a TANF payment. If the payment is made in a month in which the unit does not receive a TANF payment, the Cash Severance Diversion payment counts as a month toward the time limit.
[20] To receive diversion assistance, a participant must either have a full-time job, be on unpaid leave due to temporary illness (under four months) and meet the gross income test, or s/he must be employed, eligible for less than the maximum amount of cash assistance and decline the assistance the applicant is eligible for.
[21] Payments do not count against the time limit, unless the recipient applies for TANF during the 12-month ineligibility period. If the recipient receives a TANF payment, the diversion payment counts against the time limit. The unit can reapply and receive TANF during the period of ineligibility if they lost their job through no fault of their own and intensive job search does not yield a job. If they do receive TANF, they lose 4 months towards their lifetime limit.
[22] The period of ineligibility depends on the amount of the diversion payment. Units receiving a payment equaling three months of benefits are ineligible for five consecutive months, units receiving a payment equaling six months of benefits are ineligible for nine consecutive months, and units receiving a payment equaling eight months of benefits are ineligible for twelve consecutive months.
[23] All of the unit's income is disregarded for benefit computation, so it will always receive three times the Maximum Benefit.
[24] An applicant who has found a job that will make him or her ineligible for cash assistance or who wants to accept a job and withdraw his or her application for assistance is eligible for a one-time payment in order to begin or maintain employment.
[25] The type and amount of the payment is determined on a case-by-case basis and is dependent upon the needs of the applicant.
[26] Applicants must either be in danger of losing employment or have evidence of barriers to accepting a verified offer of employment. Also, countable income must be at or below 200 percent of poverty.
[27] Additional benefits may be available to an individual who has already received diversion funds if (1) the individual has not already received the $2,000 maximum allowed in the program period; (2) the individual is still in the period of TANF ineligibility; (3) the individual is employed at the time; and (4) the expense is for an unforeseen job-related expense.
[28] Iowa calculates the period of TANF ineligibility in days rather than months. The total period of ineligibility is equal to two times the diversion payment divided by (maximum benefit for family size divided by 30 days).
[29] Although it still exists in the law, Louisiana's diversion program has not received funding since September 2002. According to that law, the recipient can receive a cash payment worth up to four months of TANF benefits, and they are ineligible for TANF for four months without a penalty after receiving diversion. They can receive it twice in a lifetime, but no more than once every 12 months.
[30] Diversion payments are only provided to caretaker relatives or parents who are employed or looking for work.
[31] Units that apply for benefits during the three-month ineligibility period must repay any diversion payment received for any period that was covered by both diversion and TANF.
[32] Minnesota's four month Diversionary Work Program (DWP) is mandatory for all TANF applicants except for the following units: (1) child only cases; (2) one-parent families that include a child under 12 weeks of age; (3) minor caregivers without a high school diploma or GED; (4) caregivers age 18 or 19 without a high school diploma or GED who choose to have an employment plan with an education option; and (5) caregivers age 60 or over. Two-parent families must participate in DWP unless both parents meet the exemption criteria listed above. In determining eligibility, a housing subsidy of $50 does not count as income and any unexpected increases in income while enrolled in DWP, will be disregarded. 100 percent of the earnings from a new job obtained while participating in DWP will be disregarded for the remainder of the four-month program. Other than these two items, DWP applicants and participants have the same income and eligibility criteria as TANF. This includes asset limits, income disregards, and income exclusions. For their activity requirements, DWP participants do not have the same requirements that they can only participate in a portion of their activities (such as education) for a restricted number of hours. In addition to receiving financial assistance, recipients participate in four months of intensive employment services focused on helping the participant obtain an unsubsidized job before entering welfare. Failure to comply with the employment services, which may include a structured job search, results in ineligibility for both DWP and TANF until compliance. However, once the participant cooperates, they can start receiving benefits immediately. They do not have a specific number of months they must cooperate with their activity requirements before their benefits resume. After the four months are complete, participants still requiring assistance may apply for TANF as applicants.
[33] DWP benefits are provided on a monthly basis and are equal to the difference between the unit's countable income and the sum of its actual housing costs, utility costs, $35 per month for telephone services, and up to $70 per unit member for personal needs. The total monthly grant amount cannot exceed the cash portion of the TANF Transitional Standard (see Table II.A.3). Unlike TANF, DWP recipients are eligible to receive food stamp benefits in addition to their diversion benefits. Also, they are not required to assign child support payments over to the State.
[34] The unit may apply for TANF at the completion of the four-month diversion program. If a unit applies to TANF anytime within 12 months of receiving either TANF or DWP assistance, the unit moves directly into TANF and is not eligible to participate in diversion.
[35] Applicants for Wfn12J/TANF must participate in New Jersey's diversion program, Early Employment Initiative (EEI), if they (1) have a work history that equals or exceeds four months of full-time employment in the last 12 months; (2) appear to meet TANF eligibility requirements; (3) are not in immediate need; and (4) do not meet criteria for a deferral from work requirements. Participants receive a one-time, lump-sum payment and are required to pursue an intensive job search for 15 to 30 days while their Wfn12J/TANF application is processed. If participants obtain employment and withdraw their application, they are eligible to receive a second lump-sum payment to assist in the transition to employment. If no employment is secured, the applicant is referred back to the Wfn12J/TANF agency for cash assistance.
[36] The maximum amount a family would receive is relative to the number of persons in the unit. The amount included in the table is for a unit of eight or more people. The maximum diversion payment for a family of three is $750. If the agency feels an individual may benefit, he or she may be considered suitable for repeated participation in EEI when determining subsequent eligibility for the program.
[37] If a participant is unable to find a job through the diversion program or loses employment and reapplies for TANF benefits within 60 days of the original application, TANF benefits will be retroactive to the date of application. Any lump-sum payment received under the EEI is prorated from the date of the original application to the date of the reactivation and subtracted from the monthly grant amount for which the assistance unit is eligible. If this lump sum exceeds the family's monthly grant amount, the excess is counted as unearned income when calculating the monthly assistance benefits for any subsequent month. If the applicant loses his or her employment after 60 days from the application date, the family will need to reapply for TANF.
[38] The diversion payment is only available to assist applicants in keeping a job or accepting a bona fide offer of employment.
[39] Units may apply for assistance during the 12-month period, but the benefits will be prorated to account for the diversion payment. Units receiving a diversion payment in another State may not receive a diversion payment or monthly benefits in New Mexico for 12 months or the length of the period of ineligibility in the other State, whichever is shorter.
[40] New York has three types of diversion payments: Diversion Payments (for crisis needs such as moving expenses, storage fees, or household structural or equipment repairs), Diversion Transportation Payments (for employment-related transportation expenses), and Diversion Rental Payments (for rental housing).
[41] To be eligible for Diversion, applicants must be currently employed, or have received earned income from employment within the 90-day period prior to application (in Two-Parent families, only one parent must meet this requirement). In addition, the unit must have verified financial needs that, if met, would prevent the family from applying for ongoing TANF. If the demonstrated financial need exceeds the maximum Diversion payment, the family may still receive Diversion payments if they verify that anoth er source will take responsibility for the remaining financial need.
[42] Diversion assistance is only available to applicants. The unit must not have received assistance payments during the 12 months prior to the date of application and the adult member of the unit must not have terminated employment within 60 days of application for benefits.
[43] The six month period begins at the date of application. The six month waiver period may be reduced by up to three months if it is determined that the family will suffer undue and unforeseeable hardship during all or any portion of months four through six of the waiver period.
[44] South Dakota has no formal limit on the number of payments a unit may receive; however, a State source reports that it is unlikely that an assistance unit would receive a diversion payment more than once every 12 months.
[45] To qualify for the State's diversion program, the assistance unit must meet one of the "Crisis Criteria" including: (1) the caretaker or second parent lost employment in the process month, application month, or two months before application; (2) a dependent child experienced a loss of financial support from the legal parent or stepparent within the past 12 months due to death, divorce, separation, abandonment, or termination of child support and the caretaker was employed within 12 months of the application or process month; (3) the caretaker or second parent graduated from a university, college, junior college, or technical training school within 12 months of the application or process month and was underemployed or unemployed; or (4) the caretaker and/or second parent was employed but faced the loss or potential loss of transportation and/or shelter or faced a medical emergency temporarily preventing them from continuing to work. If the unit has an unresolved TANF activity requirement sanction or is not eligible for a TANF grant of at least, the unit is ineligible for diversion assistance.
[46] The first diversion payment in a 12-month period will not count as a month of financial assistance against the 36-month time limit; the second and subsequent diversion payments in a 12-month period will count.
[47] If the unit applies for benefits during the 12-month ineligibility period, the diversion payment becomes a loan. The amount of the loan is calculated by dividing the diversion payment by 12 and multiplying the quotient by the number of months remaining of the 12-month period since the diversion payment was received. The unit's monthly benefit is decreased by five percent each month until the loan is repaid.
[48] For units that received diversion assistance before July 2000, three months are counted toward the lifetime limit.
[49] The diversion payment is considered a loan to assist with expenses related to obtaining or maintaining employment and it must be repaid. Repayments are expected within 12 months but may be extended to 24 months. The loan may be paid back in cash or through a combination of cash and volunteer community service (valued at the higher of the State or federal minimum wage).
[50] The caseworker may issue loans for between $25 and $1,600. In a 12-month period, a unit may receive several loans, but they may not receive more than $1,600 in total loans or have an outstanding loan balance of more than $1,600.

Time Limiting Assistance

States generally may not use Federal funds to provide assistance to a family that includes an adult head of household or a spouse of the head of household who has received assistance for 60 months (whether or not consecutive). However, States may extend Federally-funded assistance beyond 60 months to 20 percent of the caseload, without penalty, based on hardship or domestic violence. States also have the option to set lower time limits on the receipt of TANF benefits.

State policies related to time limiting assistance to a family vary greatly. In a few cases, States had received waivers under Section 1115 of the Act to implement time limits before PRWORA. These States have the authority to continue their waiver policies for the duration of their waivers. Furthermore, the flexibility available in the use of State funds allows each State to structure its time limit policies in a variety of ways. For example, a State may use segregated or separate State-only funds to provide assistance to families that it wishes to exempt from the time limit or to families that have reached the 60-month Federal time limit, in excess of the 20 percent cap (see Table 12:13 and Table 12:14).

**Table 12:13**

State Lifetime Time Limit Policies
State	Lifetime limit	Whose Benefits Are Terminated
State	Lifetime limit	Entire unit	Adult only
Alabama	60 months	X	—
Alaska	60 months	X	—
Arizona	60 months	X	—
Arkansas	24 months	X	—
California	60 months [1]	—	X
Colorado	60 months	X	—
Connecticut	21 months [2]	X	—
Delaware	36 months [3]	X	—
District of Columbia	— [4]	—	—
Florida	48 months	X	—
Georgia	48 months	X	—
Hawaii	60 months	X	—
Idaho	24 months	X	—
Illinois	60 months	X [5]	—
Indiana	24 months	—	X
Indiana	60 months	X	—
Iowa	60 months [6]	X	—
Kansas	60 months	X	—
Kentucky	60 months	X	—
Louisiana	60 months	X	—
Maine	— [7]	—	—
Maryland	60 months	X	—
Massachusetts	—	—	—
Michigan	—	—	—
Minnesota	60 months	X	—
Mississippi	60 months	X	—
Missouri	60 months	X	—
Montana	60 months	X	—
Nebraska
Time limited assistance	60 months	X	—
Non-time limited assistance	—	—	—
Nevada	60 months	X	—
New Hampshire
Employment Program	60 months	X	—
Family Assistance Program	—	—	—
New Jersey	60 months	X	—
New Mexico	60 months	X	—
New York	— [8]	—	—
North Carolina	60 months [9]	X	—
North Dakota	60 months	X	—
Ohio	60 months [10]	X	—
Oklahoma	60 months	X	—
Oregon	— [11]	—	—
Pennsylvania	60 months	X	—
Rhode Island	60 months	—	X
South Carolina
All, except STAR	60 months	X	—
STAR	—	—	—
South Dakota	60 months	X	—
Tennessee	60 months	X	—
Texas	60 months	X	—
Utah	36 months	X	—
Vermont	—	—	—
Virginia
VIEW	60 months	X	—
All, except VIEW	—	—	—
Washington	— [12]	—	—
West Virginia	60 months	X	—
Wisconsin	60 months	X	—
Wyoming	60 months	X	—
Source: Table IV.C.1 Formal Diversion Payments, July 2006 from the Urban Institute's Welfare Rules Database, funded by DHHS/ACF and DHHS/ASPE.
[1] California's TANF funding began December 1996; however, recipients' benefit months did not begin to count against units' 60-month limit until January 1998. Using State funds, California will extend recipients' benefits beyond 60 months if the units received assistance between December 1996 and January 1998. The length of the extension equals the number of months the unit received benefits during this time period.
[2] Recipients may apply for extensions after 21 months of benefits, however, they may not receive more than 60 total months of assistance. See Table IV.C.4 for more information on extensions.
[3] The 36-month time limit applies to assistance units that apply for benefits on or after January 1, 2000. Units that received benefits before this date are eligible for 48 months of assistance.
[4] The District of Columbia uses local money to fund assistance units that have reached the 60-month federal lifetime time limit. All units that are either in compliance with program requirements or are exempt from requirements are automatically eligible for continued assistance. If the unit is not in compliance upon reaching the 60-month mark, the noncompliant adult(s) will be removed from the grant, while other unit members will continue to receive assistance.
[5] If the adult who has reached the 60-month lifetime limit is not the parent of any child in the assistance unit, only the adult is ineligible for benefits. Children who do not live with a parent can therefore continue to receive assistance after their caretaker reaches the 60-month limit.
[6] In addition to the 60-month lifetime limit, units must establish a time frame, with a specific ending date, during which the recipient expects to become self-sufficient (i.e., when income is above eligibility limits).
[7] Units in compliance with TANF program rules may continue to receive benefits beyond 60 months. If members of the unit have been sanctioned three or more times during their 60 months of assistance, the adult's needs are not considered for benefit computation for an amount of time equal to the length of the adult's last sanction period.
[8] After 60 months, the unit is still eligible to receive noncash assistance through the State's Safety Net Assistance program.
[9] In certain circumstances, a child may be able to continue receiving benefits after the 60 months. Since the time limit follows the adult, a child may enter a new household and become eligible in a new assistance unit.
[10] After receiving 36 months of assistance, the case is closed; however, it is possible to receive 24 additional months of benefits if the unit has not received benefits for at least 24 months and can demonstrate good cause for reapplying.
[11] Although the State does not discuss the federal lifetime limit (60 months), the final TANF regulations, published April 1999, indicate that any months during which a nonexempt head of household receives TANF-funded assistance under a waiver will count toward the federal time limit. Therefore, in addition to the State time limit, a 60-month lifetime limit that applies retroactively to all recipients as of the date TANF began or the first month of receipt under the waiver, whichever is later.
[12] Units in compliance with TANF program rules may continue to receive benefits beyond 60 months.

**Table 12:14**

Other State Time Limit Policies
State	Lifetime limit	Whose Benefits Are Terminated
State	Lifetime limit	Entire unit	Adult only
Alabama	—	—	—
Alaska	—	—	—
Arizona	— [1]	—	—
Arkansas	—	—	—
California	—	—	—
Colorado	—	—	—
Connecticut	—	—	—
Delaware	—	—	—
District of Columbia	—	—	—
Florida	—	—	—
Georgia	—	—	—
Hawaii	—	—	—
Idaho	—	—	—
Illinois	—	—	—
Indiana	—	—	—
Iowa	—	—	—
Kansas	—	—	—
Kentucky	—	—	—
Louisiana	24 of 60 months	X	—
Maine	—	—	—
Maryland	—	—	—
Massachusetts
Exempt	—	—	—