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TANF Emergency Fund in the Recovery Act of 2009

ACF Website: www.acf.hhs.gov HHS Recovery Website: www.hhs.gov/recovery Administration for Children & Families, US DHHS

TANF Emergency Fund




  

$5 billion available until September 30, 2010 for increases in: Basic assistance Non-recurrent, short-term benefits Subsidized employment Pays 80% of increase over base year (FY 2007 or 2008) expenditures Each state can qualify for up to 50% of its TANF block grant, subject to overall cap To date, we have awarded states over $2 billion
Administration for Children & Families, US DHHS

Basic Assistance Expenditures




Basic assistance expenditures (triggered by caseload increase) Can go beyond standard cash assistance. For example:

Bonus payments, e.g., for job retention Earnings supplements Short-term increases in cash assistance grant

Administration for Children & Families, US DHHS

Non-recurrent, Short-term Benefits




Must meet 3 conditions:


Address a familys specific crisis situation or episode of need Is not intended to meet recurrent or ongoing needs Will not extend beyond 4 months

 

Very broad, flexible category of spending Can go to low-income families whether or not they receive cash assistance
Administration for Children & Families, US DHHS

Non-recurrent, Short-term Benefits: Examples


 

  

Cash diversion or welfare avoidance grants Emergency housing assistance (e.g., rent payment to prevent eviction, security deposit, moving costs) Energy assistance to prevent utility shutoff Refundable tax credits, such as state EITC Back-to-school or clothing allowances to address specific needs
Administration for Children & Families, US DHHS

Non-recurrent, Short-term Benefits: More Examples




Employment-related needs (e.g., vehicle purchase or repairs, tools, licensing and registration fees) Short-term services (e.g., transportation, child care, domestic violence, substance abuse, and mental health treatment) Short-term education and training activities
Administration for Children & Families, US DHHS

Subsidized Employment


In public, private for-profit, or private non-profit sector Includes the cost of wage subsidies, staffing and development, and employer supervision and training Range of approaches permitted, including transitional employment programs Employer supervision and training expenses can represent up to 25 percent of wage costs without special documentation.
Administration for Children & Families, US DHHS

Qualifying Expenditures
  

Combined federal and state spending (20% does not have to be state dollars) Must be an increase over comparable quarter in the base year (FY 2007 or FY 2008) May be third-party spending claimed as state maintenance-of-effort spending (MOE) Third-party cash donations Third-party spending (in-kind donations) Employer supervision and training costs

Administration for Children & Families, US DHHS

Resources
 

Office of Family Assistance website:


http://www.acf.hhs.gov/programs/ofa/

Initial Guidance on the Emergency Fund:


http://www.acf.hhs.gov/programs/ofa/policy/paofa/2009/pa200901.htm

Application Form and Instructions:


http://www.acf.hhs.gov/programs/ofa/policy/piofa/2010/pi201001/pi201001.htm

Administration for Children & Families, US DHHS

Additional Resources


Applications that have been approved:


http://www.acf.hhs.gov/programs/ofa/tanf/apprTANF emerfund.html

Qs and As about the Emergency Fund:


http://www.acf.hhs.gov/programs/ofa/recovery/tanffaq.htm

Examples of non-recurrent short-term benefits:


http://www.acf.hhs.gov/programs/ofa/policy/NonRecurrent_Short-Term_Benefits.htm

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Administration for Children & Families, US DHHS