Temporary Assistance for Needy Families. Temporary assistance for needy families (TANF) was created under the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996. TANF is a federal block grant providing temporary cash assistance, subsidized childcare, and work programs for families. States use TANF block grants to operate their own programs. State programs differ, but operate in accordance with the following purposes set forth in federal law:
There is a federal life time limit of receiving TANF benefits for 60 months after July 27, 1997.
WorkFirst. WorkFirst is Washington State's TANF program which was initiated in 1997. The program has a number of requirements, many of which are federally required. For example, there is a federally imposed 60-month lifetime limit for receiving a cash grant TANF, unless the reicipient qualifies for an exemption.
There are exceptions to the 60-month lifetime limit of receiving TANF benefits. Federal law limits hardship exemptions to 20 percent of the caseload. Current exemptions include:
Unemployment. The official unemployment rate is known as U3. It defines unemployed people as those who are willing and available to work, and who have actively sought work within the past four weeks. The U3 unemployment rate for December 2020 in Washington was 7.1 percent.
A person may qualify for a hardship extension to the 60-month lifetime limit on TANF benefits if they received a TANF cash grant during a month after March 1, 2020, when Washington's unemployment rate is at or above 7 percent. The extension is equal to the number of months that the person received a TANF grant during a month of high unemployment, and the extension must be applied sequentially to any other extensions that may apply.
The provisions of the act apply prospectively and retroactively to March 1, 2020.
The committee recommended a different version of the bill than what was heard. PRO: It is more important now more than ever to meet the needs of those in need. Restoring Great Recession policy cuts is crucial. The term "refusal to work" is poorly worded as it includes scenarios where a parent is unable to find childcare, lacks adequate transportation and if you are just an hour short on your work requirements, you can be sanctioned. In 2020, 120,000-160,000 people were pushed into poverty, a disproportionate number were women and people of color, those who experience persistent racism and sexism. Communities of color are disproportionately impacted by COVID, by being a higher health risk, more likely to be an essential worker and impacted economically. Full family sanctions hurt children and disproportionately impact communities of color. Many recipients qualify for a domestic violence hardship exemption but either they do not know to ask for it or they are afraid to. The policies in this bill allow for greater flexibility. We really need to help kids get out of the cycle of poverty, the stress of poverty alone is very toxic to a child and the pandemic has only heightened these issues.
OTHER: Federal rule limits the state's ability to implement some of the provisions of this bill. If we do not meet our work participation rate, we could be sanctioned. Right now we are fine but in the future we may not be. The WorkFirst orientation provision needs to be clarified. There are challenges with the July 1, 2022, implementation date, would prefer 2022 but the eligibility piece can be effective in 2021.
The committee recommended a different version of the bill than what was heard. PRO: The intent of this bill is to bolster families who are struggling to meet their basic needs. This bill would give families more time to recover from the current downturn. We hope that any work the committee does to the language of the bill will stay true to the intent. State policy makers made steep cuts to the Temporary Assistance for Needy Families (TANF) program after the Great Recession. The program has been reduced by over $300 million in inflation adjusted dollars, even during a period of economic growth. Families getting back to work need the support of this program. There are concerns about the narrow approach of using a statewide unemployment rate that does not allow for differences in cost of living and regional economic disparities.
OTHER: This bill has a commendable goal, which is to provide access to resources for the neediest citizens. However, the bill as written violates federal TANF rules, and the effective date presents an implementation challenge.