Welfare Reform: TANF Trends and Data (CRS Report for Congress)
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| Release Date |
Revised Aug. 6, 2004 |
| Report Number |
98-369 |
| Authors |
Vee Burke, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
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Summary:
The national family cash welfare caseload (AFDC/TANF), which flattened out after plunging 57% from FY1994 to FY2001, (Figure 1), now may be on the rise. During the first half of FY2004, the TANF caseload, including families in separate state-funded programs, climbed almost 2% in California and New York, which account for about 30% of all TANF families. Recent state policy changes show contrary trends. Effective August 1, West Virginia reduced TANF benefits by 25%, ended the marriage bonus, reduced the school clothing allowance, and halted some services. New state laws of Texas and Washington have increased work sanctions, and the governor of New York has proposed to tighten sanctions. Minnesota now is implementing a diversionary work program and a family cap required by 2003 state law. On the other hand, both California and New York increased basic benefits in 2003. Also, the California legislature in late July rejected the governors proposals to reduce benefits and suspend a cost-of-living (COLA) benefit increase. To promote work, TANF programs use work sanctions, liberal work rewards, Work First policies, and diversion payments. Under TANF, the share of recipients who work and the proportion of cases without an adult recipient have increased sharply. Under AFDC, 75% of family welfare outlays were for cash benefits, but under TANF, cash assistance accounts for only 41% of total spending.
