{ "id": "R40157", "type": "CRS Report", "typeId": "REPORTS", "number": "R40157", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 352420, "date": "2009-09-24", "retrieved": "2016-04-07T02:15:51.817356", "title": "The Potential Role of the Temporary Assistance for Needy Families (TANF) Block\u00a0Grant in the Recession", "summary": "The recession that began in December 2007 has raised issues about policies to address the threats to the economic security of people and families from an economic downturn. Families that were economically disadvantaged before the recession are highly likely to face risks to their well-being\u2014unemployment rates for women maintaining families, minorities, and those with less than a high school education are above the average for all workers.\nThe emphasis of public policy for low-income families with children with able-bodied parents is supporting and requiring work. The system of needs-based cash benefits underwent major changes over several decades, culminating in policy changes in the mid-1990s that included the major welfare reform law of 1996. The current recession is the first real test of how policies put in place in the mid-1990s affect the well-being of families with children during a steep economic downturn and high unemployment. Unemployment insurance (UI) is the major program to replace lost wages for unemployed workers. However, low-wage workers and those with intermittent employment are less likely to receive UI than higher-wage workers with stronger labor force attachment. In the past, the \u201csafety net\u201d for families with children included cash welfare. The 1996 welfare reform law created the Temporary Assistance for Needy Families (TANF) block grant with fixed funding and altered rules that apply to the cash welfare caseload and gave states enhanced flexibility in designing benefits and services for needy families with children. The cash welfare caseload declined by two-thirds from 1994 to 2008 and stood at 1.8 million families in December 2008, just above the post-welfare reform low of 1.7 million families in July 2008. The share of poor children receiving TANF plummeted from over 60% before welfare reform to 22% by 2008.\nThe American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5) provides states with incentives and funds to rethink the safety net for disadvantaged families with children. First, it provides states with funding incentives to expand UI for low-income workers. This permits states to expand social insurance to respond to the recession. ARRA also provides additional funding to the states through TANF to finance recession-related expenditures. It establishes a temporary, $5 billion \u201cemergency\u201d contingency fund that will reimburse states for 80% of increased expenditures for basic assistance, non-recurrent short-term benefits, and subsidized employment expenditures for fiscal years 2009 and 2010. Emergency funds for basic assistance are contingent on increases in the basic assistance caseload. Through September 11, 2009, 15 states have been granted emergency funds totaling $563 million with $180 million in outlays.\nARRA\u2019s new funds to pay for increased basic assistance (i.e. cash welfare) have raised the question of whether the newly available funds will serve to promote welfare dependency. Historically, cash welfare caseloads often increase when unemployment increases, so it could be argued that the additional funds will pay for caseload rises caused by systemic economic forces (e.g. a world-wide recession). However, concerns about increasing welfare dependency, as well as concerns that traditional cash welfare might not meet the needs of those thrown into poverty by the recession, could lead to debates at the state level about how best to use these new TANF funds. Since TANF provides states with broad flexibility, ARRA\u2019s additional TANF funding could be used for new programs, such as short-term benefits, subsidized employment programs, and community service programs, in addition to or instead of increased traditional cash welfare. This report will be updated.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40157", "sha1": "db0da2e8aee02e0c9de497af1bd4992893b677ac", "filename": "files/20090924_R40157_db0da2e8aee02e0c9de497af1bd4992893b677ac.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40157", "sha1": "2ecfac70c03d7a0dd879d2984836c0d33f9c4e84", "filename": "files/20090924_R40157_2ecfac70c03d7a0dd879d2984836c0d33f9c4e84.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc700744/", "id": "R40157_2009Apr14", "date": "2009-04-14", "retrieved": "2015-08-27T16:20:31", "title": "The Potential Role of the Temporary Assistance for Needy Families (TANF) Block Grant in the Recession", "summary": "This report discusses the potential role that the Temporary Assistance for Needy Families (TANF) block grant to states may play in mitigating the effects of the recession for poor families with children. The TANF block grant is best known as a funding source for cash welfare. However, it also funds a wide range of benefits, services, and activities for disadvantaged families with children, as well as programs to achieve the goals of reducing out-of-wedlock pregnancies and promoting two-parent families.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20090414_R40157_f2641192671dbad77ef77dbfc5db5ad934df0f90.pdf" }, { "format": "HTML", "filename": "files/20090414_R40157_f2641192671dbad77ef77dbfc5db5ad934df0f90.html" } ], "topics": [ { "source": "LIV", "id": "Food relief", "name": "Food relief" }, { "source": "LIV", "id": "Food stamps", "name": "Food stamps" }, { "source": "LIV", "id": "Public welfare", "name": "Public welfare" }, { "source": "LIV", "id": "National policy", "name": "National policy" }, { "source": "LIV", "id": "Unemployment", "name": "Unemployment" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc743489/", "id": "R40157_2009Feb24", "date": "2009-02-24", "retrieved": "2015-10-20T21:35:54", "title": "The Potential Role of the Temporary Assistance for Needy Families (TANF) Block Grant in the Recession", "summary": "This report discusses the potential role that the block grant to states of Temporary Assistance for Needy Families (TANF) may play in mitigating the effects of the recession for poor families with children. It discusses the recession and the economic insecurity of disadvantaged families, the TANF block grand and potential role in the recession, as well as legislative issues.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20090224_R40157_10c520353b2f888c572444dba142a00a58ede737.pdf" }, { "format": "HTML", "filename": "files/20090224_R40157_10c520353b2f888c572444dba142a00a58ede737.html" } ], "topics": [ { "source": "LIV", "id": "Food relief", "name": "Food relief" }, { "source": "LIV", "id": "Food stamps", "name": "Food stamps" }, { "source": "LIV", "id": "Public welfare", "name": "Public welfare" }, { "source": "LIV", "id": "National policy", "name": "National policy" }, { "source": "LIV", "id": "Unemployment", "name": "Unemployment" } ] } ], "topics": [ "Domestic Social Policy" ] }