Welfare Reform: Diversion as an Alternative to TANF Benefits (CRS Report for Congress)
Premium Purchase PDF for $24.95 (30 pages)
add to cart or
subscribe for unlimited access
Pro Premium subscribers have free access to our full library of CRS reports.
Subscribe today, or
request a demo to learn more.
| Release Date |
June 16, 2006 |
| Report Number |
RL30230 |
| Report Type |
Report |
| Authors |
Carmen Solomon-Fears, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
Summary:
One strategy that states are using to reduce the need for ongoing welfare is referred to as "diversion." Diversion is typically considered to be a payment, program, or activity that is intended to divert applicants for Temporary Assistance for Needy Families (TANF) benefits from completing the application process and thereby becoming potentially eligible for monthly TANF assistance. Welfare diversion comes in a variety of forms, such as lump sum payments, vendor payments, supportive services, and resource referral. In addition, applicant job search is used by some states as a diversion activity.
Sometimes it is not easy to identify what diversion is and what it is not. A procedure like eligibility screening may be a form of diversion when it is carried out in a certain manner, while at other times it may merely be part of an eligibility review. Diversion payments generally are equal to several months' benefits. They usually are offered as a one-time payment in lieu of extended cash benefits. Acceptance of a diversion payment ordinarily makes a family ineligible for TANF assistance for a certain period of time.
According to the latest available reported data, 28 states and the District of Columbia provided lump sum diversion payments to TANF applicants; 16 states and the District of Columbia required TANF applicants to engage in active job searches before their application for TANF was approved; and 15 states were using a fairly aggressive form of resource referral. Under the final TANF regulations, non-recurrent, short-term benefits (e.g., diversion) for crisis situations (provided for no more than four months) do not count as TANF assistance. Since diversion is not considered TANF assistance, families receiving diversion aid are not subject to TANF work requirements, time limits, child support assignment, or data reporting requirements.
This report discusses welfare diversion and state use of diversion strategies. It will be updated periodically as new data and information become available.
