The welfare reform debates from the late 1960s to the mid-1990s focused on issues related to families headed by a single mother (which comprised most of the families on the assistance rolls during that period), and, specifically, concerns that welfare itself helped contribute to economic disadvantage of families with children. TANF was created in the 1996 welfare law. Basic assistance, the category of expenditure most commonly associated with TANF, represents only 30% of all TANF and MOE funds used in FY2010. It provides FY2012 funding for the basic TANF block grant, healthy marriage and responsible fatherhood competitive grants, and certain other funds at their FY2011 levels. It does not provide FY2012 funding for TANF supplemental grants (discussed in detail below). In addition, P.L. Under the short-term extension of TANF, the 112 th Congress would have to act again to continue the program beyond September 30, 2012 (the end of FY2012). Most federal TANF policy focuses on historical concerns related to cash assistance for needy families with children, which led to the 1996 welfare law more than 15 years ago. Assessing the Performance of TANF-Funded Activities

All of the current TANF performance measures focus on the cash assistance caseload. TANF's Responsiveness To a Recession

The recession of 2007-2009 represents the first deep and long economic slump since the enactment of the 1996 welfare reform law. However, the fund was exhausted in early FY2010 based on grants made to relatively few states (18 states and the District of Columbia). Congress augmented the regular contingency fund by creating a temporary, Emergency Contingency Fund (ECF), funded at $5 billion for two years, FY2009 and FY2010. However, the ECF (discussed above) provided grants of $1.3 billion to help finance subsidized employment during FY2009 and FY2010. The ECF was estimated to have funded 262,500 job slots during its lifetime. Subsidized employment programs can also provide more income for families than TANF cash assistance benefits provide. Congress could consider
establishing a dedicated funding stream for subsidized employment; and/or creating non-financial inducements for states to expand their subsidized employment programs, such as counting participation in subsidized employment for those not on the ongoing cash assistance rolls toward a state's work participation standard. These fathers—like their single mother counterparts—tend to have lower levels of educational attainment and face above-average rates of health barriers to employment. Or Congress might consider ways states could make more extensive use of existing TANF funds to serve disadvantaged noncustodial parents by, for example,
continuing DRA-established programs, possibly emphasizing activities such as employment services in addition to training in social skills; providing states with the incentive to expand subsidized jobs programs for noncustodial parents; an example of such an incentive is allowing states to count participants in subsidized employment who are not recipients of ongoing cash assistance toward the TANF work participation standard; establishing a TANF state plan requirement that requires states to discuss and set goals for noncustodial parents; this could be paired with requiring states to assess their efforts at aiding noncustodial parents. P.L. 112-96 ( H.R. It provides funding for increases in cash assistance, non-recurrent short-term benefits, and subsidized employment.
P.L. 112-96 funds TANF through the end of FY2012. It generally provides FY2012 TANF funding at FY2011 levels, but does not fund TANF "supplemental grants." In addition, P.L. 112-96 prevents electronic benefit transaction access to TANF cash at certain establishments, and also revises TANF reporting standards to facilitate data exchanges with other programs.
The short-term extension of TANF defers major budget and policy decisions related to the block grant. Most federal TANF policy focuses on historical concerns related to cash assistance for needy families with children, which led to the 1996 welfare law. However, TANF has evolved into a funding stream that funds a wide range of economic aid and human services that address economic and social disadvantage for families with children. In FY2010, only 30% of all federal TANF and associated state dollars were used for basic monthly cash assistance.
The recent recession was the first long and deep one since the enactment of the 1996 welfare law. TANF's contingency fund, established in 1996 to provide extra grants during recessions, was exhausted in early FY2010. Congress created a $5 billion temporary Emergency Contingency Fund (ECF) for FY2009 and FY2010 that provided extra funding to help pay for increased cash assistance caseloads, short-term aid, and subsidized employment. The ECF expired on September 30, 2010. Congress might consider policy alternatives to provide states with extra funding during the next economic downturn.
A TANF-funded activity that was substantially expanded during the recent economic downturn was subsidized employment. The ECF provided $1.3 billion for subsidized employment for an estimated 262,500 slots during the lifetime of the fund. TANF-funded subsidized employment can be for those on the assistance rolls as well as other low-income parents, caretakers, or youth. Congress might consider ways to encourage states to continue subsidized employment activities, including providing dedicated funding for this activity and/or considering participation in subsidized employment for individuals not receiving ongoing assistance when assessing state TANF performance.
Additionally, most traditional welfare reform issues have focused on families headed by a single mother. Current law provides TANF grants to community-based organizations for initiatives to promote both healthy marriage and responsible fatherhood. However, poor noncustodial fathers, like their poor single mother counterparts, tend to have low levels of educational attainment, weak attachment to work, and health barriers to employment. They might also have a criminal record. Congress might examine ways to expand TANF-funded work and employment services for disadvantaged noncustodial fathers.