Ch2. TANF & Public Assistance — Welfare Reform and Safety Net Programs

TANF — Temporary Assistance for Needy Families

Purpose:
Provide temporary cash assistance to low-income families
Promote work, job preparation, and self-sufficiency

Legal basis:
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (PRWORA)
Title IV-A of the Social Security Act

Structure:
Block grant to states from federal government
States have broad flexibility to design their programs
Federal requirements: work requirements, time limits

Administering agency:
HHS Administration for Children and Families
State social services / welfare agencies

---

Benefit Types & Eligibility

Cash assistance:
Monthly cash grant for qualifying families with children
Amount varies significantly by state (not federally set)

Eligibility requirements:
Income and assets below state-set limits
Family with children under 18 (or 19 if in school)
US citizen or qualified immigrant
Cooperation with child support enforcement

Federal time limits:
60-month (5-year) lifetime limit on federally funded benefits
States may set shorter limits or extend with state funds

Work requirements:
Adults generally required to work, seek work, or participate
in job training after 24 months of assistance
States must meet federal work participation rate targets

---

Supplemental Nutrition Assistance Program (SNAP)

SNAP (formerly Food Stamps):
Federal program providing food purchasing assistance
Administered by USDA; states handle eligibility

Eligibility:
Gross income ≤ 130% of federal poverty level
Net income ≤ 100% of poverty level
Asset limit: $2,750 (general); $4,250 (elderly/disabled)

Benefits:
Electronic Benefits Transfer (EBT) card
Monthly benefit based on household size and income
Cannot be used for alcohol, tobacco, or non-food items

Work requirements:
Able-bodied adults without dependents (ABAWDs): must work
or participate in workfare 20 hours/week
3-month limit without meeting requirement

---

Appeals & Due Process

Fair hearing (appeals process):
Applicants/recipients can challenge benefit denials,
reductions, or terminations

Request process:
Must be requested within state timeframe (typically 90 days)
State agency must provide timely written notice of
any adverse action before it takes effect

Hearing procedures:
Informal but formal enough to protect due process rights
Claimant can present evidence and witnesses
Goldberg v. Kelly (1970): constitutional due process
requires pre-termination hearing for welfare benefits

Repayment / overpayments:
Benefits obtained by fraud or error must be repaid
Intentional program violations: disqualification periods

---

Key Concept Cards

TANF = 5-Year Federal Lifetime Limit ★★★★★ : Federal law limits TANF cash benefits to 60 months lifetime. States can use state funds to extend beyond this, but many choose not to. Memory hook: TANF = 5-year federal clock

SNAP = Income-Based Food Aid ★★★★★ : SNAP requires household income at or below 130% of the federal poverty level. Benefits are loaded on an EBT card monthly. Memory hook: SNAP = food assistance via EBT

Fair Hearing = Due Process Right ★★★★☆ : Under Goldberg v. Kelly, welfare recipients have a constitutional right to a hearing before benefits are terminated. Memory hook: Before termination → hearing required

---

Practice Quiz

Q. How does the 130% federal poverty level SNAP income limit work in practice?

The federal poverty level (FPL) is updated annually by HHS. For a household of 4, the FPL in 2024 is approximately $31,200/year. A family at 130$3,380. SNAP uses both gross (130% FPL) and net income (100% FPL) tests, with deductions for housing costs, childcare, and earned income available to reduce net income. A family just above the gross income limit may still qualify if their net income after deductions falls below 100% FPL.

Q. Why was TANF structured as a block grant to states rather than as a direct federal benefit?

The 1996 welfare reform replaced the prior AFDC (Aid to Families with Dependent Children) entitlement with a block grant specifically to give states flexibility to design their own programs, set benefit levels, and impose additional requirements. Proponents argued that states are better positioned to understand local labor markets and family needs. Critics note that block grants limit federal oversight, allow states to reduce benefits below adequate levels, and result in wide variation in the generosity of assistance across states. States can use block grant funds for a wide range of purposes beyond direct cash assistance.