TANF Emergency Fund in the Recovery Act of 2009

1. TANF Emergency Fund in the Recovery Act of 2009 ACF Website: www.acf.hhs.gov HHS Recovery Website: www.hhs.gov/recovery Administration for Children & Families, US DHHS

2. TANF Emergency Fund • $5 billion available until September 30, 2010 for increases in: • Basic assistance • Non-recurrent, short-term benefits • Subsidized employment • Pays 80% of increase over base year (FY 2007 or 2008) expenditures • Each state can qualify for up to 50% of its TANF block grant, subject to overall cap • To date, we have awarded states over $2 billion Administration for Children & Families, US DHHS

3. Basic Assistance Expenditures • Basic assistance expenditures (triggered by caseload increase) • Can go beyond standard cash assistance. For example: • Bonus payments, e.g., for job retention • Earnings supplements • Short-term increases in cash assistance grant Administration for Children & Families, US DHHS

4. Non-recurrent, Short-term Benefits • Must meet 3 conditions: • Address a family’s specific crisis situation or episode of need • Is not intended to meet recurrent or ongoing needs • Will not extend beyond 4 months • Very broad, flexible category of spending • Can go to low-income families whether or not they receive cash assistance Administration for Children & Families, US DHHS

5. Non-recurrent, Short-term Benefits: Examples • Cash diversion or welfare avoidance grants • Emergency housing assistance (e.g., rent payment to prevent eviction, security deposit, moving costs) • Energy assistance to prevent utility shutoff • Refundable tax credits, such as state EITC • Back-to-school or clothing allowances to address specific needs Administration for Children & Families, US DHHS

6. Non-recurrent, Short-term Benefits: More Examples • Employment-related needs (e.g., vehicle purchase or repairs, tools, licensing and registration fees) • Short-term services (e.g., transportation, child care, domestic violence, substance abuse, and mental health treatment) • Short-term education and training activities Administration for Children & Families, US DHHS

7. Subsidized Employment • In public, private for-profit, or private non-profit sector • Includes the cost of wage subsidies, staffing and development, and employer supervision and training • Range of approaches permitted, including transitional employment programs • Employer supervision and training expenses can represent up to 25 percent of wage costs without special documentation. Administration for Children & Families, US DHHS

8. Qualifying Expenditures • Combined federal and state spending (20% does not have to be state dollars) • Must be an increase over comparable quarter in the base year (FY 2007 or FY 2008) • May be third-party spending claimed as state “maintenance-of-effort” spending (MOE) • Third-party cash donations • Third-party spending (in-kind donations) • Employer supervision and training costs Administration for Children & Families, US DHHS

9. Resources • Office of Family Assistance website:http://www.acf.hhs.gov/programs/ofa/ • Initial Guidance on the Emergency Fund:http://www.acf.hhs.gov/programs/ofa/policy/pa-ofa/2009/pa200901.htm • Application Form and Instructions:http://www.acf.hhs.gov/programs/ofa/policy/pi-ofa/2010/pi201001/pi201001.htm Administration for Children & Families, US DHHS

10. Additional Resources • Applications that have been approved:http://www.acf.hhs.gov/programs/ofa/tanf/apprTANFemerfund.html • Qs and As about the Emergency Fund:http://www.acf.hhs.gov/programs/ofa/recovery/tanf-faq.htm • Examples of non-recurrent short-term benefits:http://www.acf.hhs.gov/programs/ofa/policy/Non-Recurrent_Short-Term_Benefits.htm Administration for Children & Families, US DHHS