2. However, many work in unstable, low-wage  jobs with few benefits and advancement opportunities. Programs Used Four Strategies Designed to Help TANF Clients Move into Higher Wage Employment or Build Financial Assets

Based on our interviews with experts and our site visits, we identified four  strategies used to help TANF clients find well-paying jobs and improve  their financial condition: training, post-secondary education, self- employment, and financial asset building. Many programs we visited used a combination of one or  more of the four strategies. A Network of Non- Profits, TANF Agencies, Employers, and Community Colleges Is Key to Operating Programs

The programs we visited relied on a network of support to help TANF  clients prepare for and attain well-paying jobs. Typically, the programs we  visited were run by non-profit organizations providing services to TANF  clients either under contract with a TANF agency or using a mix of public  and private funding sources. Some state and local welfare agencies,  through adopting specific policy provisions such as allowances for post- secondary education, also played a key role in fostering the strategies in  this report. In addition to core services, local non-profits and TANF  agencies either directly provided or helped link clients to services such as  child care, housing, and on-the-job support. Partnerships with Local Employers and Community Colleges Yield Additional Resources for TANF Clients

As part of the broader network, local non-profit programs and TANF  offices often forged partnerships with local employers to open up job  opportunities for their clients. Although HHS has several efforts underway, more needs to be known  about the effectiveness of strategies for building individuals’ skills and  earnings capacity and how to incorporate them as options within state and  local TANF programs. HHS Conducts and Shares Research on Employment and Asset-building Strategies

HHS is engaging in several research projects focused on helping TANF  clients and other low-income individuals find higher-wage employment  and build their assets. For  example, research could help identify (1) more information on specific  education and training strategies that work and what the key program  elements are that lead to success and that can be replicated; (2) ways to  incorporate education and training strategies into the lives of low-income  individuals, whether as part of a welfare-to work program or in  combination with part- or full-time work; (3) which strategies work best  for those with varying skill levels, including how best to target educational  and training skills to specific job needs, particularly for those who may not  succeed in a classroom setting; and (4) which service delivery approaches  are the most effective and cost-efficient, including understanding more  about the most appropriate provider or access point, such as the welfare,  educational, or employment and training systems or some combination of  these. HHS Provides Targeted Grants That Encourage Use of Strategies

HHS also supports strategies designed to help TANF clients raise their  incomes through targeted grants. In addition to the TANF grant—one of  the most significant and likely sources of funding for welfare programs— the agency also offers two smaller grant programs that directly support the  employment and asset-building strategies discussed in this report. Regional offices sometimes collaborate with other federal agencies in  these efforts. While HHS has provided some technical assistance to facilitate use of  these strategies, the overall emphasis of welfare reform on work rather  than education and training is sometimes perceived by programs as a  barrier to implementing these strategies for TANF recipients. Because of these factors, HHS officials may find it  increasingly challenging to gather and disseminate information on  promising practices or to provide technical assistance for local programs  wishing to implement these promising strategies. It is more difficult, but  important, to reach all of the parties now involved in delivering welfare-to- work services in this more decentralized environment.
Why GAO Did This Study

Following major welfare reform in 1996, the number of families receiving cash assistance was cut in half to 2 million. While many former recipients now rely more on their earnings, they often work at low-wage jobs with limited benefits and advancement opportunities. To better understand how to help these individuals and their families attain economic self-sufficiency, GAO is reporting on (1) strategies designed to increase income for TANF recipients through employment; (2) the key factors related to implementing and operating such strategies; and (3) actions the Department of Health and Human Services (HHS) has taken to facilitate the use of these strategies. GAO consulted experts to gather information about promising strategies and visited 26 programs.

What GAO Found

Based on interviews with experts and site visits, we identified four strategies that aimed to increase incomes for recipients of Temporary Assistance for Needy Families (TANF)--training, post-secondary education, self-employment, and financial asset building. Training strategies often targeted services to particular groups or job market needs. Other programs used post-secondary education to position clients for higher-wage jobs. Some programs we visited gave participants the tools to run their own businesses as a way out of poverty. Finally, asset building strategies aim to help clients save and invest money to pursue career goals and support their families. The 26 programs we visited used one or more of these strategies. A broad network of local non-profits, state and local TANF offices, employers, and community colleges is key to operating these strategies. Some of the programs we visited were non-profits under contract with the TANF office. Others relied on a mix of public and private funds, some because of concerns that TANF's emphasis on work was a barrier to providing education and training options. State and local TANF offices, for their part, sometimes set policies and provide additional funding to encourage the strategies discussed in this report. Local non-profits and TANF agencies either directly provided or helped link clients to supplemental services such as child care, housing, on-the-job support, and transportation. As part of the broader network, local non-profits and TANF offices often forged links with employers and community colleges to leverage additional resources for their clients, including training curricula, career ladders, and work opportunities. HHS is supporting these strategies through research, targeted grants, and technical assistance. Efforts by other federal agencies, such as the Departments of Education and Labor, also support some of the strategies discussed in this report. HHS has several research projects focused on helping low-income individuals find higher-wage employment and build their assets. While these efforts are important, more needs to be known about the effectiveness of specific strategies, such as those identified in this report, in increasing TANF recipients' earnings capacity. In addition to the TANF block grant, HHS has two small grant programs that support employment and asset-building strategies. While HHS has provided some technical assistance to facilitate the use of these strategies, it is not clear whether service providers understand ways they can incorporate education and training in a work-focused welfare system. Furthermore, HHS faces some challenges disseminating information on new research or promising strategies to all of the organizations providing services to TANF clients in the more decentralized welfare environment.