The Congress recognized the unique economic hardship facing the 40 percent of American Indians living on reservations by exempting anyone living on reservations with high unemployment from the law’s 60-month time limit on receipt of TANF cash assistance.Furthermore, the act gave federally recognized American Indian tribes the option to administer their own TANF programs either individually or as part of a consortium, an option they did not have in the past. Under PRWORA, tribes implementing their own TANF programs have greater flexibility than states in some areas. Tribes and states also have the same flexibility to determine what types of work supports, such as childcare, transportation, and job training, they will provide to recipients. Despite Tribes’ Economic Development Efforts, Economic Conditions On Reservations Remain Poor, And Tribes Lack Some Key Factors For Economic Growth

Tribes have used various strategies to stimulate economic development; however, unemployment and poverty rates remain high on reservations. 1). Even if those participating in tribal TANF programs were taken into account, the decline in American Indian families receiving TANF is significant. Tribes Face Challenges Implementing Their Programs

Tribes have faced a number of challenges in implementing tribal TANF programs. Many tribes have found that data on the number of American Indians are inaccurate, complicating the determination of tribal TANF grant amounts and making it difficult to design and plan programs. Others believe that eligible families are more likely to seek benefits from a tribal program, in part because of increased outreach. These start-up costs include those for basic infrastructure such as information technology systems.
What GAO Found

Under welfare reform, American Indian tribes have the option to run Temporary Assistance for Needy Families (TANF) programs either alone or as part of a consortium of other tribes rather than receiving benefits and services from state TANF programs. Because of the difficult economic circumstances on many reservations, the law also gives tribal TANF programs more flexibility to design their programs than it gives to states. Tribes have used various strategies to stimulate economic development; however, unemployment and poverty rates remain high on reservations, and prospects for economic growth are limited. Nationally, the number of American Indian families receiving TANF assistance has declined significantly in recent years. On some reservations, however, caseloads have remained the same or increased. American Indians represent an increasing proportion of the total TANF caseload in some states. To date, 172 tribes, either alone or as part of a consortium, have used the act's flexibility to design and administer their own TANF programs. Tribes face challenges in implementing tribal TANF programs, including a lack of (1) reliable data on the number of American Indian TANF recipients; (2) infrastructure support, such as information systems; and (3) experience and expertise in administering welfare programs.