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TANF Reauthorization

TANF Reauthorization. A New Basic Workforce Development Program?. Status of Legislation in Congress. Bush Administration Bill – Late February House Bill (H.R. 4737) – Passed May 16 Senate Bill (Amendment to H.R. 4737) > Reported July 25 > Waiting for “preconference” deal

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TANF Reauthorization

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  1. TANF Reauthorization A New Basic Workforce Development Program?

  2. Status of Legislation in Congress • Bush Administration Bill – Late February • House Bill (H.R. 4737) – Passed May 16 • Senate Bill (Amendment to H.R. 4737) > Reported July 25 > Waiting for “preconference” deal > Senate debate not yet scheduled • Deadline for reauthorization is REAL

  3. TANF Funding • Basic block grant - $16.5 million level-funding to September 30, 2007 • State maintenance-of-effort (matching) funds remains 75% of FY 1994 level • Senate adds $440 million (House $320) supplemental grants to 24 states with low TANF funding, high population growth • Same $2 billion contingency funds for rising unemployment, food stamp cases

  4. TANF Child Care Funding • Now $2.7 billion entitlement, $2.1 billion annual discretionary funding • House adds $200 million to mandatory, $480 million to ceiling on discretionary • Senate adds $1.1 billion to mandatory plus $30 million for at-home infant care demonstrations

  5. Bonuses for TANF Performance • Currently $200 million for high perfor-mance in work, work supports, family formation; $100 million for nonmarital birth reduction • House cuts to $100 million for high performance based on work alone • Senate drops both high performance and nonmarital birth bonuses, puts funds in Business Link Partnership grants

  6. Senate’s Business Links Plan • Authorizes $200 million annually for competitive grants to local governments, workforce board, nonprofits • Partnerships to engage employers in improving wages & skills of low-income • Could establish transitional jobs • Develop seed funds to capitalize delivery of self-sustainable social services

  7. Universal Engagement . . . • Currently, state options to ensure how adults are “engaged in work” in 2 years • House requires self-sufficiency plans for all parents and caretakers in 60 days • Senate requires Individual Responsibility Plans (IRPs) for all adult recipients – plans must address work activities, work supports, and child well-being

  8. Assessment Intensified • Currently, initial assessment of skills, prior work experience, employability • House follows current law, but allows “manner deemed appropriate by state” • Senate continues current law, but adds assessment of barriers to employment, using model screening tools built by HHS and advisory review panel to “improve state policies for assisting individuals with barriers to work”

  9. Participation Rates, Hours, Credits • Both House and Senate jump up 5% per year from 50% now to 70% in FY 2007 • Single parents now must “work” 30 hours per week (20 hours with small child) • House required 40 hours for all parents; both would add partial credit for lower minimums • Senate drops caseload reduction credit in favor of employment credit, higher earnings credit, and counting non-cash recipients of child care or transportation

  10. Countable Activities • Current primary: work, job search for 6 weeks, “vocational educational training,” providing child care • Secondary now includes skill training, education related to employment • Senate adds “rehabilitative” activities, allows 8 weeks of job search • House drops “vocational educational training,” gives state flexibility on secondary activities

  11. Education and Training • Senate counts vocational education for 24 months, double current allowance • House allows for 3 months in a row every 24 months, if work-related • Senate counts adult basic education for six months, allows states to count postsecondary education for up to 10% of state caseload

  12. Other Provisions • 5-year limit on cash benefits maintained (TANF-paid wage subsidies count) • Senate OKs use of New Hire information to detect fraud in unemployment comp • TANF required to be partners with one-stop centers, unless state opts out • Multiple worker protection provisions like those in WIA

  13. Waivers • Old AFDC waivers -- continued to now under TANF -- run to expiration date > AZ and NE expire this Fall > MT, OR, TN and VA expire in 2003 > HI and MA expire in 2005 • “Superwaivers” in House bill • Senate relies only on extending current waivers

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