Temporary Assistance for Needy Families:
National Council on Disability Fact Sheet with Recommendations:

January 14, 2005

Background: In 1996, the Temporary Assistance for Needy Families (TANF) block grant was created to replace Aid to Families with Dependent Children (AFDC). Initially, TANF was scheduled for reauthorization in 2002; however, Congress has approved several short-term extensions in place of full reauthorization. Until the current continuing resolution, the most recent action was HR 4589, a bill that extended the TANF reauthorization through September 30, 2004. Current operation of the TANF program is based on a continuing funding resolution (scheduled to expire March 31, 2005). Although TANF is not a program specifically for persons with disabilities, research indicates that over 40 percent of TANF recipients have a physical or mental disability, or they have a child with a disability.

Issues: In its reauthorization of TANF, Congress should recognize the desire people with disabilities have to work, and should provide specific supports and services in regard to physical, mental or health conditions which could enable people to more fully participate in employment opportunities. For people with disabilities who are on TANF, there are multiple barriers to employment, including inadequate transportation, and few opportunities to improve educational and employment skills. In addition to these barriers, families who have a child with a disability face multiple challenges in leaving TANF, such as sanctions that do not take into account the disability, and the lack of flexibility in their jobs to meet their children’s needs. NCD’s 2003 TANF report, TANF and Disability-Importance of Supports for Families with Disabilities in Welfare Reform is located at http://www.ncd.gov/newsroom/publications/2003/familysupports.htm

Loss of health insurance - One of the primary work disincentives for people with disabilities leaving TANF is the loss of Medicaid, which covers more services for chronic disability conditions than commercial health insurance. For a parent with a disability, or a parent who has a child with a disability, health care coverage that is continuous is crucial in addressing medical needs while working, as well as providing supports that will enable them to continue working.

Work requirements - TANF’s work requirements and lifetime limits to benefits pose challenges for both state and local agencies as they attempt to address needs of individuals and families with disabilities. Specific issues include the number of hours TANF recipients are required to work, defining activities that constitute working, and states’ discretion in waiving the five-year lifetime benefits cap for TANF recipients.

Sanctions - Currently, research has shown that numerous families who have either a parent or child with a disability are inappropriately sanctioned. Compared to people who leave TANF and are working, families with disabilities who leave TANF after sanctions are imposed on them are disproportionately impacted. For example, TANF sanctioned family members are less likely to be working. The sanctioned family members who work will also earn less than other working people who are former TANF recipients.

Recommendations: The National Council on Disability provided the following recommendations for TANF reauthorization. The recommendations are made in an effort to improve outcomes for families on TANF by facilitating the ability of states to support families with disabilities who are currently in the welfare system.

Facilitate access to healthcare - When TANF recipients move from welfare to work, federal legislation should provide access to continuous Medicaid or other health insurance coverage. Transitional Medical Assistance (TMA) provided through TANF needs to provide eligibility for Medicaid until employment would cover medical needs. If health insurance is not a benefit provided, other approaches, possibly the Medicaid buy-in model, should be considered.

Appropriately screen TANF recipients - Ensure that parents with disabilities are identified in a timely manner with appropriate diagnostic tools; expand voluntary screening and assessments to identify barriers to employment; provide documentation from other systems; and follow professional standards of confidentiality and accountability with the screening, assessment and documentation.

Sanctions - States should be prohibited from sanctioning families with disabilities until steps have been taken to assist those families in meeting TANF requirements. These steps would include pre-sanction review procedures to identify barriers, providing families with assistance in meeting the current rules and, where necessary, modifying rules that address the parent’s or child’s disability.

Provide states with increased flexibility - Provide states with flexibility in how they define countable work activities, determine the length of time a particular individual or family will need services or treatment, determine TANF recipients who would be exempt from the time limit, and design individual plans for parents or children with a disability. NCD recommends that states be given authority to extend the five-year limitations period for individuals and families who need additional time in the program as a result of disability.

Information provided by the National Council on Disability, 1331 F. Street, N.W., Suite 850, Washington, DC, 2004. (202) 272-2004 (Voice). (202) 272-2074 (TTY). www.ncd.gov