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TANF Reauthorization and Child Care Assistance

On August 22, 1996, Congress enacted the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), PL 104-193. PRWORA created a new welfare block grant program, known as Temporary Assistance for Needy Families (TANF). The welfare law also consolidated Federal child care funding streams, amending the Child Care and Development Block Grant Act of 1990, and establishing the Child Care and Development Fund (CCDF). PRWORA allows States to transfer up to 30 percent of their TANF grant to CCDF or to the Social Services Block Grant (SSBG). States may also spend a portion of their TANF funds directly on child care services. In Fiscal Year 2005, States transferred more than $1.9 billion in TANF funds to CCDF and spent another $1.3 billion directly on child care services.

This document contains a sample of resources, including both current materials and key historical documents about welfare reform and TANF reauthorization, particularly as they pertain to expenditures in child care and early education services.

Federal Resources

Reauthorization of TANF

TANF was reauthorized under the Deficit Reduction Act (DRA) of 2005, requiring States to engage more TANF cases in productive work activities leading to self-sufficiency. The DRA maintains the original TANF requirement that 50 percent of States’ welfare caseloads fulfill statutory work requirements. It updates the incentive for States to reduce caseloads, broadens the pool of families subject to the work requirements, and creates a new penalty for failing to comply with work verification procedures. Additional Information is available on the Web at www.acf.hhs.gov/programs/ofa/regfact.htm.

Legislation and Proposal

  • Funding Childhood Education, School Readiness, Kindergarten and Other Public Education Programs (April 2005), a TANF Program Instruction (TANF-ACF-PI-2005-01), by the Office of Family Assistance, Administration for Children and Families, U.S. Department of Health and Human Services, provides guidance about when and how Federal TANF and State maintenance of effort (MOE) funds may be used for early childhood education, school readiness, kindergarten, and other public education programs. This resource is available on the Web at www.acf.hhs.gov/programs/ofa/pi-ofa/pi2005-1.htm.
  • Reauthorization of the Temporary Assistance for Needy Families Program: Interim Final Rule (2006), Federal Register, Administration for Children and Families, U.S. Department of Health and Human Services, reauthorized the welfare law and made important changes, including recalibrating the caseload reduction credit, and by providing a consistent definition of work participation. Additional information can be reviewed at www.acf.hhs.gov/programs/ofa/tanfregs/tfinrule.htm.   
  • The Next Phase of Welfare Reform: Implementing The Deficit Reduction Act Of 2005 (2006), U.S. Department of Health and Human, offers a summary statement of the implementation of the welfare reform plan mandated in PRWORA and modified through the DRA. This resource is available online at www.hhs.gov/news/press/2002pres/welfare.html.
  • The Child Care and Development Fund (CCDF) Final Rule (July 24, 1998), Federal Register, Administration for Children and Families, U.S. Department of Health and Human Services, implements the child care provisions of the PRWORA and incorporates technical corrections to PRWORA made by the Balanced Budget Act of 1997 (Public Law 105-33). The CCDF Final Rule is available on the Web at www.acf.hhs.gov/programs/ccb/law/finalrul/index.htm.
  • The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), PL 104-193, authorized TANF and CCDF. Title VI outlines the child care provisions of the law. The final version of the enrolled bill as passed by Congress is available online at http://thomas.loc.gov/cgi-bin/query/z?c104:H.R.3734.ENR. More information is available online at www.acf.hhs.gov/programs/ccb/ccdf/factsheet.htm.
  • The Child Care and Development Block Grant Act of 1996 (42 USC 9801 et seq.) was amended by PRWORA. This child care law is available for reference on the Web at www.acf.hhs.gov/programs/cb/laws_policies/cblaws/public_law/pl104_193/pl104_193a6.htm and www.acf.hhs.gov/programs/ccb/ccdf/factsheet.htm.

In addition, the Thomas Legislative Information Service is an online resource for locating and tracking legislation in Congress. Bill summaries, status of laws, and other information are available on the Web at http://thomas.loc.gov/.

Federal Reports

The following are selected reports published by the Federal Government about welfare reform, TANF, and CCDF administration.

  • Child Care and Development Fund Report of State and Territory Plans FY 2006-2007 (2007), by the Child Care Bureau, Administration for Children and Families, U.S. Department of Health and Human Services, presents a description of the policies implemented by CCDF Lead Agencies to support payment of child care and improve program quality of child care for low-income families. The report also describes what States and territories have done to achieve the goals identified in the Good Start, Grow Smart initiative. The report is available on the Web at http://nccic.acf.hhs.gov/pubs/stateplan2006-07/index.html.
  • Temporary Assistance for Needy Families (TANF) Program Seventh Annual Report to Congress (December 2006), by OFA, is the most recent annual summary of the TANF program. The report outlines trends in caseloads and expenditures, employment and earnings of needy families, and State achievements in work participation rates and the high performance bonus, among other topics. This resource is available online at www.acf.hhs.gov/programs/ofa/annualreport7/ar7index.htm.
  • Working Toward Independence (February 2002) is President Bush’s detailed plan for TANF reauthorization, which emphasizes four major elements: promoting work, strengthening families, acknowledging the immense capacity of States and localities to design and conduct effective social programs, and restoring nutrition benefits for legal immigrants. This document is available online at www.whitehouse.gov/news/releases/2002/02/welfare-reform-announcement-book-all.html.
  • Leavers, Stayers, and Cyclers, An Analysis of the Welfare Caseload (November 2002), by Cynthia Miller, Manpower Demonstration Research Corporation, reviews the caseload of three types of families who receive TANF: Leavers—those who leave and do not come back for at least a year, the stayers—those who do not leave welfare at all, and the cyclers—those who leave and keep coming back. This resource is available on the Web at http://aspe.os.dhhs.gov/hsp/leavers99/Miller-MDRC-02.pdf.
  • Helping Families Achieve Self-Sufficiency: A Guide on Funding Services for Children and Families through the TANF Program (1999), by OFA, provides a general overview of the TANF program; the four purposes of TANF and considerations when determining appropriate use of funds; basic criteria for determining whether State expenditures count as part of the minimum State MOE contribution to the TANF program; and general guidance. This resource is available on the Web at www.acf.hhs.gov/programs/ofa/funds2.htm.

Federal Agencies

The following agencies within the U.S. Department of Health and Human Services are responsible for administering and/or monitoring the TANF and CCDF programs.

  • Office of Family Assistance (OFA)
    Administration for Children and Families
    U.S. Department of Health and Human Services
    Phone: 202-401-9275
    Web site: www.acf.hhs.gov/programs/ofa/  

    OFA is the Federal office responsible for the administration of the TANF block grant. The OFA Web site contains a variety of current and historical information about TANF in general and about reauthorization in particular. The Web page,U.S. Welfare Caseloads Information, includes links to official quarterly TANF caseload data at www.acf.hhs.gov/news/stats/newstat2.shtml. OFA funds the Welfare Peer Technical Assistance Network to provide peer-to-peer technical assistance for Government and private entities to support implementation of the TANF program. The Welfare Peer Technical Assistance Network Web site is available at http://peerta.acf.hhs.gov/.
  • Child Care Bureau (CCB)
    Administration for Children and Families
    U.S. Department of Health and Human Services
    Phone: 202-690-6782
    Web site: www.acf.hhs.gov/programs/ccb/

    The Child Care Bureau, through the OFA, Administration for Children and Families (ACF), is the Federal office responsible for the administration of the CCDF program. The Child Care Bureau Web site contains policy and funding information, including State allocations, expenditures, and number of children served by CCDF dollars.
  • Office of Planning, Research and Evaluation (OPRE)
    Administration for Children and Families
    U.S. Department of Health and Human Services
    Web site: www.acf.hhs.gov/programs/opre/  

    OPRE is responsible for developing, monitoring, and evaluating programs designed to make measurable improvements in the economic and social well-being of America’s children and families. It is specifically responsible for TANF data collection and analysis, and for providing guidance, analysis, and technical assistance to other ACF programs, including those focusing on child care.  Research on caseload composition, leavers, and experiences at the local level, such as Local Implementation of TANF in Five Sites, is available on OPRE’s Web site at www.acf.hhs.gov/programs/opre/welfare_employ/local_impl/reports/local_impl/local_implementation.pdf.
  • Office of the Assistant Secretary for Planning and Evaluation(ASPE)
    U.S. Department of Health and Human Services  
    Phone: 202-690-7858
    Web site: http://aspe.hhs.gov/  

    ASPE advises U.S. Department of Health and Human Services about policy development; leads special initiatives; and coordinates the Department’s evaluation, research, and demonstration activities. Interim and final reports related to TANF leavers, applicants, and TANF caseload along with other welfare studies are available online at http://aspe.os.dhhs.gov/hsp/leavers99/index.htm.
  • U.S. Government Accountability Office (GAO)
    Phone: 202-512-3000
    Web site:  www.gao.gov/

    GAO is an agency that works for Congress and the American people. GAO advises Congress and the heads of executive agencies about ways to make Federal Government more effective and responsive. GAO has published several reports about State implementation of the TANF program.

Nongovernmental Resources

There are several national organizations that conduct extensive research about human and social services provided by Federal, State, and local governments. This section provides a sample of publications and organizations that have information about Federal programs, including TANF, and CCDF.

Publications

The following selected resources provide an overview of research and reports, including both current materials and key historical documents about welfare reform, TANF, and CCDF administration.

  • Child Care Subsidy and TANF Administration: A Key Topic Resource List (November 2006), by Child Care & Early Education Research Connections, provides a comprehensive compilation of research focused on three main areas: coordination of child care subsidy and TANF administration, child care subsidy administration, and child care subsidy access and use. The resource list is available on the Web at www.researchconnections.org/discover/keytopics/CCandTANFAdministrationKeyTopics_final.pdf.
  • Analysis of Fiscal Year 2005 TANF and MOE Spending by States (October 2006), by Marcie Weadon-Moreno and Elizabeth Lower-Basch, provides an analysis of all 50 States and the District of Columbia regarding how the TANF was spent as of September, 30, 2005, which are the latest data that the Federal Government has posted. The information is available in worksheet and PDF format. www.clasp.org/publications/state_moe_fy05.htm.
  • Implementing the TANF Changes in the DRA: “Win-Win” Solutions for Families and States (January 2007), by the Center for Law and Social Policy (CLASP) and the Center on Budget and Policy Priorities (CBPP), discusses the legal structure of work participation requirements; strategies for improving and increasing engagement in programs; strategies for increasing support for working families and helping States meet participation rates; disability laws and ways to improve the effectiveness of TANF-related programs for individuals with disabilities; and the fiscal implications of TANF, child care, and child support provisions. This report is available on the Web at www.clasp.org/publications/tanfguide.pdf.
  • Using TANF for Early Childhood Programs (May 2006), by Mark Greenberg, Danielle Ewen and Hannah Matthew, CLASP highlights how TANF funds can be used by States for early childhood programs. The information presented is based on CLASP’s previous reports and Federal guidelines. The document is available on the Web at www.clasp.org/publications/tanf_early_childhood.pdf.
  • Child Care Subsidies and TANF: A Synthesis of Three Studies on Systems, Policies, and Parents (April 2006), by Pamela A. Holcomb et al., provides a synthesis of three reports from a multi-phased examination of the connections between the child care and welfare systems for TANF families. It highlights different cross-system approaches; identifies strategies that can minimize administrative duplication and client burden; and sets a framework to help policy-makers, administrators, and others interested in designing more effective service delivery systems to help families with child care needs move from welfare to work. This report is available on the Web at www.urban.org/UploadedPDF/311302_synthesis.pdf.
  • Child Care Subsidies for TANF Families: The Nexus of Systems and Policies (2006), byGina Adams, Pamela Holcomb, Kathleen Snyder, Robin Koralek, and Jeffrey Capizzano, focuses on how the policies and systems effect child care subsidies that families receive while participating in TANF, and work activities linked to cash assistance. The study is available on the Web at www.urban.org/UploadedPDF/311305_nexus.pdf.
  • Transitional Jobs: Helping TANF Recipients with Barriers to Employment Succeed in the Labor Market (May 23, 2006),by Allegra Baider and Abbey Frank, published by the CLASP, highlights how transitional jobs can be used to increase the number of work related activities, as specified in the DRA. It also provides information aimed at clarifying the new TANF policies.The document is available on the Web at www.clasp.org/publications/transitional_jobs_06.pdf.

Organizations

The following is a sample of national organizations providing research, technical assistance, and opportunities for policy-makers to exchange ideas regarding Government programs for children and families, including information about TANF and CCDF programs.

  • American Public Human Services Association (APHSA)
    Phone: 202-682-0100
    Web site: www.aphsa.org

    APHSA is a nonprofit, bipartisan organization of individuals and agencies concerned with human services, including all State and many territory human service agencies, more than 1,200 local agencies, and several thousand individuals who work in or otherwise have an interest in human service programs, including welfare programs.

  • The Brookings Institution
    Phone: 202-797-6000
    Web site: www.brookings.edu  

    The Brookings Institution, a private nonprofit organization, supports the Welfare Reform and Beyond project, which sponsors forums, events, and publications related to TANF reauthorization.

  • Center for Budget and Policy Priorities (CBPP)
    Phone: 202-408-1080
    Web site: www.cbpp.org  

    CBPP is a nonpartisan research organization and policy institute that conducts research and analysis on a range of Government policies and programs, with an emphasis on those affecting low- and moderate-income people. CBPP features a special TANF reauthorization report series and other resources related to TANF reauthorization and child care.

  • Center on Law and Social Policy (CLASP)
    Phone: 202-906-8000
    Web site: www.clasp.org   

    • CLASP is a national nonprofit organization with expertise in both law and policy affecting the poor. CLASP has published and made available online a variety of reauthorization-specific reports, including an analysis of TANF and State MOE spending for Fiscal Year 2000.

  • Economic Success Clearinghouse (formerly Welfare Information Network – WIN)
    Phone: 202-587-1000
    Web site: www.financeproject.org/irc/win.asp

    • Economic Success Clearinghouse provides information, policy analysis, and technical assistance on welfare reform. The Web site offers extensive links on a host of human services topics, a TANF plan database, issue notes, details on promising practices, and other resources.

  • National Association of Counties (NACo)
    Phone: 202-393-6226
    Web site: www.naco.org

    NACo is a national organization that represents county governments in the United States. NACo’s membership totals more than 2,000 counties, representing more than 80 percent of the Nation’s population, and provides services to 3,006 counties nationwide. Information about legislature, and research and policies that affect counties, such as welfare reform and TANF, are addressed in the Human Services and Education section of the NACo Web site.

  • National Conference of State Legislatures (NCSL)
    Phone: 303-830-220
    Web site: www.ncsl.org

    NCSL is a bipartisan organization that serves the legislators and staff of the Nation’s 50 States, Commonwealths and Territories. NCSL provides research, technical assistance, and opportunities for policy-makers to exchange ideas on the most pressing issues, including welfare reform.

  • National Governors Association (NGA)
    Phone: 202-624-5300
    Web: www.nga.org

    NGA works to provide a collective voice of the Nation’s governors and provides governors and senior staff members with a wide range of services, including help with Federal issues, and policy reports and information on best practices, including information about welfare reform.

  • The Research Forum on Children, Families and the New Federalism
    Phone: 212-304-7150
    Web: www.researchforum.org

    The Research Forum, hosted by the National Center for Children in Poverty and the Mailman School of Public Health at Columbia University, encourages research, collaboration, and exchange of information among key stakeholders, such as policy-makers, State and local administrators, advocates, and practitioners. The Forum initially focused on research related to welfare reform, but is increasingly involved with research related to child and family well-being and community initiatives.

  • Urban Institute
    Phone: 202-833-7200
    Web: www.urban.org/  

    The Urban Institute is a nonpartisan social and economic research organization. Its project, Assessing the New Federalism, is a source of ongoing research on welfare reform and devolution, including major studies of welfare leavers, child care utilization, and human services policy.

  • Welfare Reform Reauthorization Information Clearinghouse
    Joint Center for Poverty Research (JCPR)
    Phone: 847-491-3395
    Web: www.jcpr.org/welfarereform_info.html   

    The Welfare Reform Reauthorization Information Clearinghouse Web site contains links to working papers, policy briefs, newsletter articles, and other information. The Clearinghouse is managed by JCPR, a national interdisciplinary academic research center that seeks to advance the research about poverty in the United States.

Updated July 2007

 
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