TANF Reauthorization: Side-by-Side Comparison of Current Law and Two Versions of H.R. 4 (108th Congress)

Order Code RL32210

CRS Report for Congress

Received through the CRS Web

TANF Reauthorization: Side-by-Side Comparison

of Current Law and Two Versions of

H.R. 4 (108th Congress)

Updated March 1, 2005

(name redacted) and (name redac

Domestic Social Policy Division

Congressional Research Service ˜ The Library of Congress

TANF Reauthorization: Side-by-Side Comparison of

Current Law and Two Versions of

H.R. 4 (108th Congress)

Summary

The 108th Congress did not complete action on legislation to reauthorize the

block grant of Temporary Assistance for Needy Families (TANF), instead adopting

short-term extensions. The latest extension funds the program through March 31,

2005. Though welfare reauthorization failed to receive final action, a bill (H.R. 4)

did pass the House and a substitute measure was reported from the Senate Finance

Committee. The differences in the two bills highlight some of the contentious issues

in the reauthorization debate.

The House-passed and Senate Finance Committee bills were very similar in

terms of how they would continue funding under the TANF program. Both bills

would have extended basic TANF funding at current levels ($16.6 billion for the 50

states, the District of Columbia, and the territories) through FY2008 and extended

supplemental grants provided to 17 states through FY2007. Both bills also would

have provided new, categorical grants for marriage promotion activities. The major

difference in the funding provisions of the two bills was how they provided extra

contingency (recession-related) funding to the states. The House bill essentially

extended the current law fund that provides matching grants to states that experience

high and increased unemployment rates and food stamp caseloads. The Senate

Finance Committee bill eliminated the requirements that states expend additional

money to access contingency funds, and instead based extra funding on the cost of

increased caseloads for states that meet revised unemployment or food stamp

caseload criteria.

The two bills would have substantially revised TANF work participation

standards that states must meet or be subject to a financial penalty. Under current

law, 50% of TANF families with an adult or minor household head must participate,

though the 50% rate is reduced by caseload reductions that have occurred since

welfare reform. Both versions of H.R. 4 would have raised this standard to 70%,

though under both bills the standard could have been reduced through credits (though

the credits differ between the two bills). They also both eliminated a separate 90%

participation rate requirement for two-parent families. Both bills would have raised

the minimum hours required of family members to be considered full participants,

though the House raised them more than did the Senate Finance Committee bill. The

bills also differed in the activities countable toward the participation standards: the

House narrowed the list of activities countable, requiring recipients to spend at least

24 hours in work, community service, or work experience programs except for a

short (usually three month) period when states may define what counts as activities

themselves. The Senate Finance Committee bill kept all activities on the current law

list, and also allowed states to count activities on an expanded list for three months

(six months in some circumstances).

Both bills included non-TANF provisions relating to child support enforcement,

responsible “fatherhood” programs, and transitional medical assistance (not

addressed herein). This report will not be updated.

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Summary of the Similarities and Differences between the Two Bills . . . . . . . . . . 1

Funding Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Basic Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Supplemental Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Contingency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Uses of Grants and Program Requirements . . . . . . . . . . . . . . . . . . . . . . 3

Work Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Participation Rate Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Hours Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Creditable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Marriage Promotion Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Detailed Comparison of TANF Provisions of the House and

Senate Finance Committee Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Short Title, Findings and Statement of TANF Goals and Purposes . . . . . . . . . . . 8

Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

TANF Financing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

State family assistance grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Supplemental grant for population increases in certain states . . . . . . . . . . . . . . . . 9

Bonus to reward employment achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Bonus to reward reductions in out-of-wedlock births . . . . . . . . . . . . . . . . . . . . . 11

Contingency fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Additional grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Social service capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Repeal of federal loan fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Maintenance of effort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Funding for child care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Use of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

General rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Transfer of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Carryover of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Use of funds for education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Direct funding and administration by Indian tribes . . . . . . . . . . . . . . . . . . . . . . . 17

Work Participation Requirements and Standards . . . . . . . . . . . . . . . . . . . . . . . . 17

Universal engagement and family self-sufficiency plan requirements . . . . . . . . 17

Sanctions against individuals for work refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Work participation requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Caseload reduction credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Employment credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Calculation of participation rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Penalty for failing participation rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Countable activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Listed in law or bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

State options for activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Time limits on activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Numerical limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Parents as scholars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Required hours of work activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Partial work credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Extra work credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Marriage Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

TANF goals and purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Funding for marriage promotion matching grants . . . . . . . . . . . . . . . . . . . . . . . . 32

Allowable activities for marriage promotion grants . . . . . . . . . . . . . . . . . . . . . . 34

Research and demonstrations on marriage promotion . . . . . . . . . . . . . . . . . . . . . 35

State Plans, Data Reporting, Research (Other than Marriage Promotion)

and Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

State plan requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Performance measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Rankings of states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Data collection and reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Use of sample data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Monthly state reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Annual state reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Data elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

HHS reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Single audit reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Research, evaluations, and national studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Research on state programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Census Bureau study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

General Accounting Office study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Waivers and program coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Definition of assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Technical corrections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

State option to make TANF programs mandatory partners with one-stop

WIA centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Sense of the Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Enforcing support of immigrants by sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Extension through FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

List of Tables

Table 1. Comparison of Current Law with H.R. 4, as Passed by the House and as

Reported by the Senate Finance Committee (TANF Provisions) . . . . . . . . . 8

TANF Reauthorization: Side-by-Side

Comparison of Current Law and

Two Versions of H.R. 4 (108th Congress)

Introduction

The 108th Congress did not complete action on legislation to reauthorize the

block grant of Temporary Assistance for Needy Families (TANF). Instead it and its

predecessor, the 107th Congress, adopted short-term funding extensions since the

original funding authority for TANF expired on September 30, 2002. The latest

short-term extension funds the program through March 31, 2005.

The House of Representatives did pass a bill in February 2003 (H.R. 4), and the

Senate Finance Committee reported an amended version of the legislation in October

2003. Though the full Senate took up the bill in late March 2004, the measure was

set-aside in that chamber after a motion to limit debate on the bill failed to receive

the required 60 votes on April 1.

The lack of final action in the 108th Congress means that welfare reauthorization

is likely to again be a topic in the 109th Congress. This report describes both the

House-passed and Senate Finance Committee-approved versions of welfare

reauthorization legislation in the 108th Congress. The differences in the two bills

highlight some of the contentious issues in the reauthorization debate. Before the bill

was pulled from the Senate floor, the Senate did approve one amendment to the bill

which would have added $6 billion over five years for child care funding (to a total

of $7 billion in child care funds above current law levels for the five years). There

were no approved amendments to the Senate Finance Committee bill’s TANF

provisions.

Summary of the Similarities and

Differences between the Two Bills

The bills had many similarities, with both extending basic funding at current

levels through FY2008 and incorporating President Bush’s proposal to provide

categorical “marriage promotion” grants. They both also raised TANF work

participation standards, though the two bills differed in terms of how much more

work would be required and what activities count toward the participation standards.

This report provides a comparison of the TANF provisions of H.R. 4 as it passed the

House and was reported from the Senate Finance Committee. It does not address

non-TANF provisions of both bills, such as revisions to the Child Care and

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Development Fund, Child Support Enforcement, Abstinence Education, and

transitional Medicaid.

Funding Provisions

The House-passed and Senate Finance Committee bills had very similar funding

provisions. The major difference in the funding provision between the two bills was

that the Senate Finance Committee bill would have completely revamped the TANF

contingency (recession) funds, while the House-passed bill would have made

relatively minor revisions to the fund.

Basic Funding. The 1996 welfare reform law entitled states to a basic TANF

block grant equal to peak expenditures in the pre-1996 welfare programs during the

FY1992 to FY1995 period. It also established a maintenance of effort (MOE)

requirement that states continue to spend at least 75% (80% if a state failed TANF

work participation requirements) of what they spent in these programs in FY1994.

The mid-1990s were the period when cash welfare caseloads were at their peak.

Both the basic TANF grant and the MOE are legislatively fixed: they did not change

when cash welfare caseloads declined in the mid- and late-1990s, nor did they

increase when caseloads in some states increased during the recent economic slump.

Neither the basic TANF block grant nor the MOE have been adjusted for inflation.

Both the House-passed and Senate Finance Committee versions of H.R. 4 would

have continued both the basic block grant and the MOE at their current funding

levels (without inflation or caseload adjustment) through FY2008.

Supplemental Grants. During the consideration of legislation that led to the

1996 welfare law, fixed funding based on historical expenditures was thought to

disadvantage two groups of states: (1) those that experience relatively high

population growth; and (2) states that had historically low grant levels relative to

poverty in the state. Therefore, additional funding in the form of supplemental grants

was provided to states that met criteria of high population growth and/or low historic

grants per poor person. Supplemental grants have been provided to 17 states:

Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Louisiana,

Mississippi, Montana, New Mexico, Nevada, North Carolina, Tennessee, Texas, and

Utah.

In FY2003, supplemental grants totaled $319 million. Both the House-passed

and Senate Finance Committee bills would have continued supplemental grants for

the same 17 states at the FY2003 funding level through FY2007 (unlike other grants,

which expire in FY2008).

Contingency Funds. The fixed basic grant under TANF also led to concerns

of inadequate funding during economic downturns. TANF includes a contingency

fund, which is designed to provide extra matching grants to states that meet criteria

of economic need (based on unemployment rates and food stamp caseloads) and have

state expenditures in excess of their FY1994 level.

The two bills differed substantially in their revisions to the TANF contingency

fund. The House-passed version of H.R. 4 essentially would have continued the fund

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on existing rules, with some relatively minor modifications: allowing some additional

state spending to count toward meeting the FY1994 funding level threshold and

modifications to increase grants for states that qualify for funds for only part of the

year.

The Senate Finance Committee bill fully revamped the contingency fund. It

would have eliminated the requirement that states increase expenditures from their

own funds above the regular TANF MOE level and eliminated the matching

requirements. It added a new financial requirement that unspent TANF balances be

below a certain threshold to qualify for contingency funds. The Finance Committee

proposal would have based contingency grants on a portion of the estimated cost of

increased cash assistance caseloads. The Senate Finance Committee bill would have

also revised the criteria of economic need for a state.

Uses of Grants and Program Requirements. Federal TANF grants and

MOE funds can be used for a wide range of benefits, services, and activities to assist

low income families with children and to further TANF goals of reducing out-ofwedlock births and promoting two-parent families. TANF grants can also be

transferred to other block grant programs: up to 30% of the grant can be transferred

to the Child Care and Development Fund (CCDF) and to the Social Services Block

Grant, though the limit on transfers to SSBG is set at 4.25% (though annual

appropriations have restored the SSBG transfer limit to its original limit set in the

1996 welfare law of 10%). Within the overall 30% limit, federal TANF funds may

also be used as the state match for federal reverse commuter grants if the program

benefits welfare families.

Both bills would have set the SSBG transfer limit permanently at 10%.

However, the House bill would have raised the overall transfer limit to 50%. The

Senate Finance Committee bill would have retained the current law 30% transfer

limit.

Both bills included provisions to ease some rules regarding use of TANF funds.

Both the House-passed and Senate Finance Committee versions of H.R. 4 would

have:

Allowed states to use carryover TANF funds for any TANF benefit

and service. Current law restricts the use of carryover funds for the

provision of “assistance.”

! Narrowed the definition of “assistance” to exclude all child care and

transportation aid. TANF funds spent on assistance trigger certain

program requirements, such as work requirement, time limits,

assignment of child support payments, and data reporting

requirements.

Under current regulations, child care and

transportation aid for nonworking families is counted as assistance

and triggers these requirements. The bills would have eliminated

such aid from the definition of assistance, freeing nonworking

families who receiving only child care or transportation aid from

these requirements.

!

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Work Requirements

Both the House-passed and Senate Finance Committee bills substantially

revised TANF work participation requirements that apply to both the states and to

individuals. They both raised work participation rates that states must meet from the

current law’s standard of 50% to 70%, raised the required hours of working to

receive full credit and provided partial credit for participating families that do not

meet the full credit standard, and revised the list of activities. However, the bills

differed in how they did these three things.

Both bills also incorporated the Bush Administration’s “universal engagement”

proposal, which requires states to develop a self-sufficiency plan for all TANF adult

recipient to monitor progress toward that plan. The House -passed bill also required

states to end benefits (“full family sanction”) for families that fail to comply with

work participation rules.

Participation Rate Standards. Current law requires states to have a

specified percentage of their families with an adult recipient (or minor head of

household) participating in creditable work activities. The current participation

standard is 50%. States are subject to an additional participation rate standard for

two-parent families, currently 90%. The participation rate standards may be reduced

for caseload reduction (not attributable to policy changes) that have occurred since

before enactment of welfare reform (FY1995). This “caseload reduction credit” has

had a large effect on participation standards, reducing the standard considerably from

its statutory rate. In FY2002, the standard was reduced to 0% for 21 states.

Both the House-passed and Senate Finance Committee bills raised the work

participation standard for all families to 70% by FY2008 and eliminated the separate

standard for two-parent families. Both bills also would have revised the credits that

reduce these standards from their statutory rate (i.e., reduce the 70% standard to a

lower rate), but they did so in different ways.

The House-passed bill revised the current caseload reduction credit so that

caseload change is measured from a more recent year (rather than the pre-welfare

reform caseload level of 1995). Ultimately, caseload reduction would have been

measured based on the most recent four years. The House bill also included a

provision to give an additional credit to states that achieved a caseload reduction of

60% of more from FY1995 to FY2001.

The Senate Finance Committee bill retained the current caseload reduction

credit for FY2004 and FY2005, but beginning in FY2006 would have replaced the

caseload reduction credit with a credit for employed welfare leavers. The bill would

have also capped all credits against the participation standard, so that the minimum

effective rate standard would have been 10% in FY2004, 20% in FY2005, 30% in

FY2006, 40% in FY2007, and 50% in FY2008.

Hours Standards. Current law requires that a family be considered

participating only if it participates for a minimum number of hours per week in a

month. Under current law, 20 hours is required for single parents with a pre-school

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child (under the age of six), and 30 hours is required for other families. Higher hours

are set for the purposes of the two-parent work participation rate.

Both the House-passed and Senate Finance Committee bills raised the hours

standards. The House-passed bill incorporated a 40-hour workweek standard for full

credit, but would also have provided “partial” credit for families with at least 24

hours of participation. No special lower hour standard would have been provided for

single parents with preschoolers.

The Senate Finance Committee bill also raised the hours standard for full credit,

but by less than proposed in the House-passed bill. Single parents with a pre-school

child would have been given full credit for participation at 24 hours per week, and

other single parent families would have been given full credit at 34 hours per week.

Partial credit for single parent families would have been provided at 20 hours per

week. Higher hours requirements would apply to two-parent families.

Creditable Activities. Current law lists 12 activities that may be counted

toward TANF work participation standards. The bulk of countable participation is

in a subset of “core” activities focused on work, time-limited job search (countable

for six weeks in a fiscal year, 12 weeks if criteria of economic need is met), timelimited vocational educational training (12 months in a lifetime), and community

service and work experience. In meeting the general 30-hour-per-week standard,

hours in educational activities are countable only for families who are also

participating in at least 20 hours per week of “core” activities. Post-secondary

education, other than that considered “vocational educational training,” does not

count toward current law federal TANF work participation standards.

Both bills would have revised the list of countable activities, but in very

different ways. The House-passed bill would have narrowed what counts as “core”

activity by removing job search and vocational educational training from that list.

Except for a limited period of time (see below), the House bill would have required

that families participate for at least 24 hours per week in work, community service,

or work experience programs to be counted toward the state’s standard. For three

months in a 24-month period (four months in the case of an educational program),

states would have been allowed to define activities that count toward the standards.

These activities would have included job search and vocational educational training

or other types of activities (e.g., English for Speakers of Other Languages classes,

substance abuse treatment or treatment for victims of domestic violence). States

would also have been allowed to determine the activities for which hours would

count above the 24-hour-per-week standard.

The Senate Finance Committee bill retained the current law list of activities,

including keeping time-limited job search and vocational educational training as

“core” activities. However, it provided states with options to allow recipients to

participate in an additional set of activities for three months in a 24-month period.

In the case where that participation is in a rehabilitative activity, another three months

of rehabilitation would have been allowable if combined with a core work activity.

The Senate Finance Committee bill would also have allowed these additional

activities (and job search and vocational educational training to count without regard

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to their usual time limits) to count for hours above 24 hours per week spent in core

activities.

The Senate Finance Committee bill also allowed states to have up to 10% of

their caseload enrolled in a special program of two- or four-year undergraduate

education or vocational educational training. This program is modeled after the

“Parents as Scholars” program that has operated in Maine using TANF MOE funds.

Marriage Promotion Grants

Current law allows states to use TANF funds for any activity “reasonably

calculated” to achieve a TANF purpose. One of the statutory purposes of TANF is

to end dependency of needy parents on government benefits, and one of the stated

means to end such dependency is “marriage.” Another of the statutory purposes of

TANF is to promote the formation and maintenance of two-parent families.

“Promoting marriage” is a currently allowable use of TANF funds.

Both the House-passed and Senate Finance Committee versions of H.R. 4 would

have carved out special “marriage promotion grants” from existing TANF funding.

Both bills included $100 million in competitively awarded matching funds for states,

territories, and tribes for marriage promotion activities. The bills would have

allowed states to use other federal TANF funds or state funds as the match for these

new marriage promotion grants.

Both bills also would have provided an additional $100 million for research and

demonstrations. The House-passed bill required that these funds be used “primarily”

for marriage promotion; the Senate Finance Committee bill required that 80% of

these funds be used for marriage promotion.

Marriage promotion activities listed in both bills were: public advertising

campaigns on the value of marriage and skills needed to increase marital stability and

health; education in high schools on the value of marriage; marriage education and

marriage and relationship skills programs for nonmarried parents or expectant

parents; pre-marital education on marriage for engaged couples; marriage

enhancement and marriage skills training for married couples; divorce education

programs; and marriage mentoring programs. Programs to reduce the disincentives

to marriage in need-based programs could only have been funded from these grants

if offered in conjunction with other marriage activities. The language of the two bills

was similar, though the Finance Committee bill had additional language requiring

that organizations familiar with domestic violence issues be consulted in developing

marriage promotion projects and language to clarify that marriage promotion

activities are to be voluntary.

Other Provisions

Both the House-passed bill and Senate Finance Committee bill would have

made additional amendments to TANF provisions regarding state plans, data

reporting, tribal TANF programs, and other provisions of TANF law. These

provisions are included in the detailed bill comparison table shown below. The

CRS-7

House-passed and Senate Finance Committee versions of H.R. 4 also included

amendments to the Child Care and Development Fund, child support enforcement,

the abstinence education program, and transitional Medicaid. These provisions are

not addressed in this report.

Detailed Comparison of TANF Provisions of the

House and Senate Finance Committee Bill

Table 1 provides a detailed comparison of the TANF programs of the Housepassed and Senate Finance Committee reported versions of H.R. 4. The table

provides references to where current law provisions are found in the Social Security

Act (SSA). It also denotes the section number in each of the bills in which the

provision is found.

CRS-8

Table 1. Comparison of Current Law with H.R. 4, as Passed by the House and as

Reported by the Senate Finance Committee (TANF Provisions)

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Short Title, Findings, and Statement of TANF Goals and Purposes

Short Title

The Personal Responsibility and Work

Opportunity Reconciliation Act of 1996 (P.L.

104-193).

The Personal Responsibility, Work, and Family

Promotion Act of 2003.

The Personal Responsibility and Individual

Development for Everyone Act (PRIDE).

Findings

P.L. 104-193, the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996,

made a series of findings related to marriage,

responsible parenthood, trends in welfare receipt

and the relationship between welfare receipt and

nonmarital parenthood, and trends in and negative

consequences of nonmarital and teen births.

[Section 101 of PRWORA]

Makes a series of findings related to: (1) the

success of the 1996 law in moving families from

welfare to work and reducing child poverty; (2)

progress made by the Nation in reducing teen

pregnancy and births, slowing increases in

nonmarital births, and improving child support

collections and paternity establishment; (3) the

flexibility provided by the 1996 law for states to

develop innovative programs; and establishing the

sense of Congress that increasing success in

moving families from welfare to work and

promoting healthy marriage and other means of

improving child well-being are important

government interests and the policies in federal

TANF law (as amended by this bill) are intended to

serve those ends. [Section 4]

No provision.

TANF goals and

purposes

The purpose of TANF is to increase state

flexibility in operating a program designed to:

(1) assist needy families so that children may live

in their homes or those of relatives; (2) end

dependence of needy parents on government

benefits; (3) reduce out-of-wedlock pregnancies;

and (4) encourage the formation and maintenance

of two-parent families.

[Section 401 of the Social Security Act (SSA)]

The overall purpose of TANF is to improve child

well-being by increasing state flexibility in

operating a program designed to: (1) provide

assistance and services to needy families so that

children may live in their homes or those of

relatives, (2) end dependence of needy families on

government benefits and reduce poverty; (3)

reduce out-of-wedlock pregnancies; and (4)

encourage the formation and maintenance of

Retains current law except for goal no. 4, which

adopts language of House bill. [Section 103(d)]

CRS-9

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

healthy, two-parent married families and

encourage responsible fatherhood. [New language

in italics] [Section 101]

TANF Financing Provisions

State family

assistance grants

Provides capped grants (entitlements to states and

territories) through March 31, 2005. Nationally,

annual family assistance grants total $16.567

billion for the states, the District of Columbia

(D.C.), and the territories. Each jurisdiction’s

annual grant equals the same share of the national

total as in FY2002. (Section 403(a)(1) of the

SSA), as amended by P.L. 108-40 and extended

by P.L. 108-89 Also provides matching grants

for the territories (Section 1108(b) of the SSA).

(Original PRWORA formula based TANF grants

on federal expenditures for TANF’s predecessor

programs in FY1992 through FY1995.)

Retains basic block grants, and extends them for

FY2004 through 2008. (Section 102(a)

Appropriates $16.567 billion annually for family

assistance grants to the states, D.C., and the

territories. Provides that the annual grant of each

jurisdiction shall equal its FY2002 proportion of

the national grant total. [Section 102(b)]. Extends

funding for matching grants to the territories

through FY2008. [Section 102(c)].

Essentially the same as House bill, but language

differs because of intervening passage of TANF

extension law — P.L. 108-40. [Section 102]

Supplemental grant

for population

increases in certain

states

Supplemental grants for (17) states with low

historic federal grants per poor person and/or high

population growth for FY1998-FY2001 (extended

at FY2001 funding level for FY2002 by P.L. 107147 and thereafter — through March 31, 2005—

by a series of laws. Grants grew each year, from

$79 million in FY1998 to $319 million in

FY2001. [Section 403(a)(3) of SSA]

Reestablishes annual supplemental grants for

FY2004 through FY2007, freezing them at the

FY2001 level ($319 million). [Section 104]

Same as House bill [Section 104]

Requires the budget baseline to assume that no

supplemental grants will be made after March 31,

2005. [Section 101(b)(1) of P.L. 108-89]

Requires the budget baseline to assume that no

supplemental grants will be made after FY2007.

[Section 104(3)]

Same as House bill. [Section 104(2)]

CRS-10

Bonus to reward

employment

achievement

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

High performance bonus ($200 million per year

on average) for FY1999-FY2003. Caps a state’s

bonus at 5% of its TANF grant. [Section

403(a)(4) of the SSA]

Replaces the high performance bonus with a bonus

to reward employment achievement (annual

average of $100 million appropriated for six years,

FY2004 through FY2009). Caps a state’s bonus at

5% of its family assistance grant. [Section 105(b)]

Same as House bill. [Section 105(a)]

Bonus based on achievement of TANF goals, with

formula developed by the Department of Health

and Human Services (HHS) in consultation with

the National Governors Association and the

American Public Human Services Association.

For FY1999-FY2001 performance, formula

consisted of three work-related measures (job

entry, job retention, and earnings gain). For

FY2002 and FY2003 performance, formula adds

family formation

outcomes, child care

affordability, and coverage by food stamps and

Medicaid/SCHIP. [Section 403(a)(4) of the SSA]

Bonus to be based on absolute and relative

progress toward goals of job entry, job retention,

and increased earnings. Formula to be developed

by HHS, in consultation with the states. [Section

105(b)]

Same as House bill, except that it adds two new

performance measures: workforce attachment

and advancement. [Section 105(a)]

Makes tribal organizations eligible for the bonus

and directs the Secretary to consult with tribal

organizations regarding criteria for their awards.

[Section 105(b)]

Same as House bill. [Section 105(a)]

Reduces FY2003 high performance bonus amount

to $100 million. [Section 105(a)]

No provision.

Provides that appropriated amounts unspent (as of

the date of enactment) for high performance

bonuses will be available through FY2004 for

payment of high performance bonuses for bonus

year 2003 — on terms in effect before repeal of

that bonus. [Section 105(b)]

No provision.

CRS-11

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

For FY2004, employment achievement bonus may

be based on three components of the repealed high

performance bonus — job entry rate, job retention

rate, and earnings gain rate. [Section 105(b)]

Note: Reduction in annual bonuses from $200

million to $100 million per year helps finance

grants for marriage promotion activities (see

Matching Grants for Marriage Promotion, below).

For FY2004 and FY2005, employment

achievement bonus may be based on three

components of the repealed high performance

bonus — job entry rate, job retention rate, and

earnings gain rate. [Section 105(a)]

Bonus to reward

reductions in outof-wedlock births

Appropriated $100 million yearly for bonuses to

the five states with the largest percentage decline

(over recent two years) in the out-of-wedlock

birth ratio. To qualify, states had to reduce their

abortion rate to below that of FY1995. [Section

403(a)(2) of the SSA]

Repeals the bonus, and uses the $100 million per

year to fund grants for marriage promotion

activities (see Matching Grants for Marriage

Promotion, below). [Section 103(b)]

Same as the House bill. [Section 103(b)]

Contingency fund

Capped matching grants ($2 billion) provided in

case of recession for FY1997-FY2001 (extended

through September 30, 2002 by P.L. 107-147 and

through March 31, 2005 by a series of laws). To

qualify for contingency dollars, states must be

“needy” and must spend under the TANF

program a sum of their own dollars equal to their

pre-TANF spending. The law provides two needy

state triggers: 1) an unemployment rate for a

three-month period that is at least 6.5% and is

10% or more above

the rate for the

corresponding period in either of the two

preceding calendar years; or 2) a food stamp

caseload increase of 10% over the FY1994FY1995 level (adjusted for the impact of

immigrant and food stamp constraints in the 1996

welfare law). Payments are capped at 20% of a

state’s basic TANF grant and a state can draw

down no more than one-twelfth of its grant in a

given month. Under a reconciliation process, its

Reestablishes a $2 billion contingency fund for

FY2004 through FY2008. Eases access to the fund

by permitting states to count child care spending

and all spending in separate state programs toward

MOE spending requirement. Eliminates the prorata reduction in the federal match rate for states

that qualify for funds only for part of the year.

Adjusts food stamp “needy state” trigger for policy

changes made after passage of 1996 welfare law

Effective date: October 1, 2003. [Section 106]

Appropriates such sums as are needed for

contingency fund grants, up to $2 billion over

five years, FY2004-FY2008. Reduces the level

of state spending required to qualify (from 100%

of the state’s historic level to 75-80%, the

standard TANF MOE) and eliminates the

requirement for state matching funds. Entitles

needy states to a contingency fund grant

reflecting costs of TANF caseloads. Revises

needy state definition. To trigger on as needy, a

state must (1) have an increase (due in large

measure to economic conditions) of 5% in the

monthly average unduplicated number of

families receiving assistance under its TANF

program in the most recently concluded threemonth period with data, compared with the

corresponding period in either of the two most

recent preceding fiscal years, and (2) meet one

of three other conditions. They are: (a) for the

most recent three-month period with data, the

CRS-12

Current law

federal match rate is reduced if it received funds

for fewer than 12 months in any year. [Section

403(b) of SSA]

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

average rate of seasonally adjusted total

unemployment must be at least 1.5 percentage

points or 50% higher than in the corresponding

period in either of the two most recent preceding

fiscal years; (b) for the most recent 13 weeks

with data, the average rate of insured

unemployment must be at least one percentage

point higher than in the corresponding period in

either of the two most recent fiscal years; or, (c)

for the most recently concluded three-months

with national data, the monthly average number

of food stamp recipient households, as of the last

day of each month, exceeds by at least 15% the

corresponding caseload number in the

comparable period in either of the two most

recent preceding fiscal years, provided the HHS

Secretary and the Secretary of Agriculture agree

that the increased caseload was due, in large

measure, to economic conditions rather than to

policy change. A state that initially qualifies as

needy because of its TANF caseload plus its

food stamp caseload would continue to be

considered needy as long as the state met the

original qualifying conditions. A state that

initially qualified as needy because of its TANF

caseload plus its total or insured unemployment

rate would

not trigger off until its

unemployment rate fell below the original

qualifying level (disregarding seasonal variations

in the case of the insured unemployment rate).

The contingency fund grant equals the state’s

federal Medicaid matching rate times the benefit

cost of an increase in the TANF family caseload

above 5% in the most recently concluded threemonth period with data, compared with the

CRS-13

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

corresponding period in either of the two most

recent preceding fiscal years. (The remaining

cost of the increased caseload would have to be

paid with state funds or other federal TANF

funds.) A state’s total contingency grant could

not exceed 10% of its family assistance grant.

To receive a contingency fund grant, a state must

have spent 70% of its TANF grants (excluding

welfare-to-work funds from the Department of

Labor). Unexpended balances are the total

amount of TANF grants not yet spent by the

state as of the end of the preceding fiscal year

minus current year expenditures through the end

of the most recent quarter that exceed the pro

rata share of the current fiscal year TANF grant.

[Section 106]

Repeals the fiscal penalty for failure of a state

that receives contingency funds to meet the

“super-MOE” requirement (100% of its historic

spending level). [Section 106] However,

specifies that a state could not be considered

needy unless it has met the lesser TANF MOE

spending requirement (75%-80%). [Section

106].

Additional grants

Social service

capitalization

No provision.

No provision.

Authorizes appropriation of $40 million for each

of FY2004-FY2008 for grants to entities for the

purpose of capitalizing and developing the role

of sustainable social services needed for success

in moving TANF recipients to work. Requires

applicants to describe their strategy for

developing a program that generates its own

source of on-going revenue while assisting

CRS-14

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

TANF recipients. Administrative costs could not

exceed 15% (except for computerization and

information technology needed for tracking or

monitoring required by TANF), but none of the

other statutory rules regarding use of TANF

funds would apply. Requires evaluation and

report to Congress. [Section 119(a)]

Car ownership

grants

No provision.

No provision.

Authorizes appropriation of $25 million for each

of FY2004-FY2009 for grants for low-income

car ownership.

Purposes:

to improve

employment opportunities of low-income

families and provide incentives to states, Indian

tribes, localities, and nonprofit groups to develop

and administer programs that promote car

ownership by low-income families. No more

than 5% of the funds could be used for

administrative costs of the Secretary in carrying

out this program. Requires evaluation. [Section

119(b)]

Repeal of federal

loan fund

Provides a $1.7 billion revolving and interestbearing federal loan fund for state welfare

programs. [Section 406 of the SSA]

Repeals loan fund. [Section 108]

Same as House bill. [Section 108]

Maintenance of

effort

Establishes a maintenance-of-effort (MOE)

requirement that states spend at least 75% of what

was spent from state funding in FY1994 on

programs replaced by TANF. Nationally, this

sum is $10.4 billion. (MOE rises to 80% if state

fails a work participation standard, see above.)

[Section 409(a)(7) of the SSA]

Continues MOE requirement through FY2009, but

raises the MOE percentage to 80% if the state

failed TANF work participation standards of the

preceding fiscal year. [Section 111(a)]

Same as House bill. [Section 111]

Defines all state expenditures to reduce out-ofwedlock births and promote marriage and

responsible fatherhood (including spending on

Same as House bill, except that Senate bill

specifies that two current law MOE limitations

would apply. These provisions exclude from

CRS-15

Current law

Funding for child

care

PRWORA created a mandatory child care block

grant and appropriated $13.9 billion for it over six

years. [Section 418 of the SSA] It also

authorized $1 billion annually through FY2002 in

discretionary funding under an expanded Child

Care and Development Block Grant (CCDBG).

[Section 603(a) of PRWORA]

FY2003

appropriations totaled $4.8 billion — $2.7 billion

in mandatory funds and $2.1 billion in

discretionary funds. (In addition, the welfare law

permits states to transfer some TANF funds to the

CCDBG.)

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

behalf of non-TANF-eligible families) as countable

toward required “maintenance-of-effort” (MOE)

state spending. [Section 103(c)]

MOE qualification spending in other state

programs unless the sum exceeds the FY1995

amount spent in those programs and spending

made to repay penalties imposed on the state.

[Section 103(c)]

Provides that spending (as the state match) from

federal marriage promotion grants shall not be

treated as state spending toward MOE

requirements. [Section 111(b)]

TANF funds used as the state match for marriage

promotion grants shall not be considered State

spending countable toward the MOE

requirement. [Section 103(b)].

Increases mandatory child care funding by $1

billion over five years, providing $2.9 billion

annually. [Section 208] Authorizes increased

CCDBG funds for FY2004-FY2007. [Section

202(b)]

For mandatory child care, same as House bill.

[Section 116 (a)] No provision for discretionary

funding. (The Senate Health, Education, Labor

and Pensions committee reported a separate bill,

S. 880, to reauthorize discretionary CCDBG

funding.)

No provision.

Sets aside $10 million in mandatory child care

funds for the Commonwealth of Puerto Rico.

[Section 116(b)]

No provision (maintains current law).

No provision (maintains current law).

Use of funds

General rules

States may use funds in any manner reasonably

calculated to accomplish the TANF purpose.

[Section 404 of the SSA]

CRS-16

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

States may use funds in any manner that they

were authorized to use pre-TANF funds. [Section

404 of the SSA]

States may use funds for any purposes or activities

for which they were authorized to use pre-TANF

funds. [Section 107(a)]

No provision (maintains current law).

A state may treat a family that has resided in the

state for fewer than 12 months under the welfare

rules of the state where they formerly lived.

[Section 404 of the SSA]

Strikes provision permitting different treatment of

families migrating into the state — found

unconstitutional. [Section 107(b)]

Same as House bill. [Section 107(a)]

Transfer of funds

States may transfer up to 30% of TANF funds to

the Child Care and Development Block Grant

(CCDBG) and the Title XX Social Services Block

Grant (SSBG). Specifies that a maximum of

4.25% of total transfers may go to SSBG,

effective in FY2001 ( but year-by-year Congress

has restored the original 10% limit.) Also allows

states to use TANF funds, within the overall 30%

transfer limit, as matching funds for the Job

Access transportation program for TANF

recipients, ex-recipients, and persons at risk of

becoming income-eligible for TANF. [Section

404 of the SSA]

Increases the overall ceiling on transfers to 50%.

[Section 107(c)] Sets limit on SSBG transfers at

10% (original limit in 1996 law) for FY2004 and

each year thereafter. [Section 107(d)]

Retains overall transfer limit at 30%. Sets limit

on SSBG transfers at 10%. [Section 107(b)]

Carryover of funds

Amounts may be spent without fiscal year limit

for “assistance” (chiefly ongoing cash aid). For

other benefits and services (“nonassistance”)

amounts must be obligated in the year of award

and spent in the following year. [Section 404 of

the SSA]

Allows use of carry-over funds from TANF grants

for any benefit or service without fiscal year

limitation. Permits a state or tribe to designate

some TANF funds as a contingency reserve.

[Section 107(e)]

Same as House bill. [Section 107(c)]

Use of funds for

education

States may use funds for educational activities (to

promote a TANF goal or because these activities

were allowed under pre-1996 law). However,

only three educational activities may be counted

toward state work participation rates: high school

attendance, education directly related to work

No provision.

Allows states to use TANF funds to establish an

undergraduate two- or four-year degree

postsecondary program sometimes known as

Parents as Scholars (PAS) or a vocational

educational program. Following services could

be provided in these undergraduate programs:

CRS-17

Current law

H.R. 4 (House-passed)

(both for high school dropouts only) and

vocational educational training. Unless it is

defined by the state as vocational educational

training, postsecondary education is not a

countable work activity. [Section 407(d) of the

SSA]

Direct funding and

administration by

Indian tribes

Earmarks some TANF funds — amount equal to

federal pre-TANF payments received by state

attributable to Indians — for administration by

tribes. Deducts these sums from state TANF

grants. Also appropriates $7.6 million annually

for work and training activities (now known as

Native Employment Works (NEW)) to tribes that

operated a pre-TANF work and training program.

[Section 412 of the SSA]

H.R. 4 (Senate Finance Committee)

child care, transportation, payment for books and

supplies, other services provided under policies

determined by the state to ensure coordination

and lack of duplication. TANF funds could not

be used for tuition. Participants in these

educational programs could be counted toward

state work participation standards.

See

Countable Activities.

Continues Indian tribal assistance grants and NEW

work/training grants through FY2008. [Section

114]

Same as House bill. [Section 113(a)]

No provision. for tribal improvement fund.

However, see below for $2 million annual setaside

from research appropriation for demonstration

projects to coordinate child welfare and TANF

services to tribal families.

Authorizes appropriation of $100 million for

each of FY2004-FY2008 for a tribal TANF

improvement fund. The fund could be used to

provide technical assistance to tribes, award

competitive grants to tribes, and conduct

research to improve knowledge about tribal

family assistance plans. [Section 113(b)]

Work Participation Requirements and Standards

Universal

engagement and

family selfsufficiency plan

requirements

State plan must require that a parent or caretaker

engage in work (as defined by the state) after, at

most, 24 months of assistance. [Section

402(a)(1)(ii) of the SSA].

Note:

This

requirement is not enforced by a specific penalty.

(States may, but need not, establish an individual

responsibility plan for each family in consultation

Repeals the 24-month work trigger. Requires state

plans to outline how they intend to require parents

and caretakers to engage in work or alternative

sufficiency activities, as defined by the state —

while observing the ban on penalizing work refusal

by a single parent of a preschool child who is

unable to obtain needed child care for specified

Same as House bill. [Section 110]

CRS-18

Current law

H.R. 4 (House-passed)

with the recipient.) [Section 408(b)(2) of the

SSA]

reasons — and to require families to engage in

activities in accordance with family selfsufficiency plans. [Section 109(a)]

States must make an initial assessment of the

skills, prior work experience, and employability

of each recipient 18 or older or those who have

not completed high school within 30 days.

[Section 408(b)(1) of the SSA]

Requires states, in a manner they deem

appropriate, to assess the skills, work experience,

and employability of each work-eligible person (a

person who is married or a single household head

and whose needs — except for sanction periods of

more than three months — are included in

determining the family’s TANF cash benefit) and

to develop a family self-sufficiency plan for each

family with such a person. Plans must be

established within 60 days of opening a case

(within 12 months for families enrolled at the time

of enactment). [Section 109(b)]

H.R. 4 (Senate Finance Committee)

Requires states to make an initial screening and

assessment, in a manner they deem appropriate,

of the skills, work experience, education, work

readiness, work barriers and employability of

each adult or minor child head of household

recipient who has attained age 18 or who has not

completed high school and to assess, in a manner

they deem appropriate, the work support and

other assistance and family support services for

which families are eligible and the well-being of

the family’s children and, where appropriate,

activities or resources to improve their well

being. Requires states, in a manner they deem

appropriate, to establish a self-sufficiency plan

for each family. Required plan contents:

activities designed to assist the family achieve

their maximum degree of self-sufficiency,

requirement that the recipient participate in

activities in accordance with the plan, supportive

services that the state intends to provide, steps to

promote child well-being and, when appropriate,

adolescent well-being , information about work

support assistance for which the family may be

eligible (such as food stamps, medicaid, SCHIP,

federal or state funded child care — including

that provided under the Child Care and

Development Block Grant and the Social

Services Block Grant, EITC, low-income home

energy assistance, WIC, WIA program, and

housing assistance). The state must monitor the

participation of adults and minor child household

heads in the self-sufficiency plans and regularly

CRS-19

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

review the family’s progress, using methods it

deems appropriate, and revise the plan when

appropriate. Before imposing a sanction against

a recipient for failure to comply with a TANF

rule or a requirement of the self-sufficiency plan,

the state must, to the extent that it deems

appropriate, review the plan and make a good

faith effort (defined by the state) to consult with

the family. States must comply with selfsufficiency plan requirements within one year

after enactment (for families then receiving

TANF). For families not enrolled on the date of

enactment, the deadline for self-sufficiency plans

is the later of: 60 days after the family first

receives assistance on the basis of its most recent

application, or one year after enactment.

Provides that nothing in the self-sufficiency plan

provisions shall be construed to establish a

private right or cause of action against a state for

failure to comply with the provisions or to limit

claims that might be available under other

federal or state laws. Requires the General

Accounting Office to submit a report to the

Ways and Means and Finance Committees

evaluating the implementation of the universal

engagement provisions of the bill. [Section 110]

Imposes a penalty on state for failure to establish

self-sufficiency plan by revising the penalty

provision for failure to achieve work participation

rate. Provides that failure to comply with selfsufficiency requirements or to achieve work

participation standards will carry the same penalty

— 5% reduction in TANF grant for first violation,

reduced for the degree of noncompliance. [Section

109(b)] See Penalty for failing participation rate.

Same as House bill, except that penalty must be

based on the degree of substantial

noncompliance and the Secretary is directed to

take various factors into account in setting the

penalty. These factors include the number or

percentage of families for whom a selfsufficiency plan is not established in a timely

fashion, duration of delays, whether the failures

are isolated and nonrecurring, and the existence

CRS-20

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

of systems to ensure establishment and

monitoring of plans. Penalty may be reduced if

the failure is due to circumstances that caused

the state to meet the criteria for contingency

funds or is due to extraordinary circumstances

such as a natural disaster or regional recession.

Requires Secretary, in a written report to

Congress, to justify any waiver or penalty

reduction due to extraordinary circumstances.

[Section 110]

Sanctions against

individuals for

work refusal

If person in a family receiving TANF assistance

refuses to engage in required work, the state shall

reduce aid to the family pro rata (or more, at state

option) with respect to the period of work refusal,

or shall discontinue aid, subject to good cause and

other exceptions that the state may establish.

[Section 407(e) of the SSA]

If a person in a family receiving TANF assistance

fails to engage in required activities and the family

does not otherwise engage in activities in

accordance with its self-sufficiency plan, the state

must impose a penalty as follows:

(a) If the failure is partial and does not last longer

than one month, the state must reduce assistance to

the family pro rata (or more, at state option) with

respect to any period of failure during the month,

or shall end all assistance to the family, subject to

good cause exceptions that the state may establish.

(b) If the failure is total and persists for at least

two consecutive months, the state must end all cash

payments to the family, including state-funded

MOE payments, for at least one month and

thereafter until the person participates, subject to

good cause exceptions that the state may establish.

(Exception: If a state constitution or a state statute

enacted before 1966 obligated local government to

provide assistance to needy parents and children,

the state requirement is to control, but only for one

year that begins with the date of enactment of this

paragraph.) [Section 110(f)]

No provision (maintains current law)

CRS-21

Current law

Work participation

requirements

Caseload reduction

credit

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Exception: a state may not penalize a single

parent caring for a child under age six for refusal

to work if the parent has a demonstrated inability

to obtain needed child care that is appropriate,

suitable, and affordable. [Section 407(e) of the

SSA]

Continues this provision.

Same as House bill.

For a minimum number of hours, a state must

engage a specified percentage of families

containing adult or teen parent recipients in

creditable work activities. Since FY2002 the

participation standard has been 50% for all

families (and since FY1999 it has been 90% for

the two-parent component of the caseload).

[Section 407(a) of the SSA]

For a minimum number of hours, a state must

engage a specified percentage of families

containing adult or teen parent recipients in direct

work or alternative self-sufficiency activities

chosen by the state. In FY2004 the standard is

50%, and it rises by five percentage points yearly

(55% for 2005, 60% for 2006, 65% for 2007) to

reach a peak of 70% for FY2008 and thereafter.

[Section 110(b)]

For a minimum number of hours, a state must

engage a specified percentage of families

containing adult or teen parent recipients in a

creditable activity. Participation rates are the

same as in the House bill. [Section 109(b)]

Required participation rates may be reduced by a

caseload reduction credit (see below).

Required participation rates may be reduced by

caseload reduction and “superachiever” credits (see

below).

Required participation rates may be reduced by

caseload reduction or employment credits, but a

cap is placed on these credits. Employment

credits (or caseload reduction credits or a

combination of the two) may not reduce

participation standards below 10% for FY2004,

20% for FY2005; 30% for FY2006, 40% for

FY2007, and 50% for FY2008 and thereafter.

[Section 109(c)] (see below).

Effective October 1, 2002, eliminates the separate

standard for two-parent families. [Section 110(a)]

Same as House bill. [Section 109(a)]

Measures caseload reduction from a moving base

year (rather than from FY1995) and shortens the

measuring interval. Also changes the eligibility

criteria base year from FY1995 to the new moving

base. For FY2004, the credit is based on the

percent decline in the caseload from FY1996 (not

Retains current law caseload reduction credit for

FY2004 and FY2005. Effective October 1,

2005, replaces the caseload reduction credit with

an employment credit (subject to limits shown

above). [Section 109(d)]

Work participation standards are reduced by a

caseload reduction credit: for each percent

decline in the caseload from the FY1995 level

(not attributable to policy changes), the work

participation standard is reduced by one

percentage point. [Section 407(3) of the SSA]

CRS-22

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

due to changes in eligibility criteria from FY1996);

for FY2005, the base year is FY1998; for FY2006,

FY2001. For FY2007 and every year thereafter,

the measuring interval is three years. [Section

110(c)]

Employment credit

No provision.

Establishes a “superachiever” caseload reduction

credit for a state with a reduction in FY2001 of at

least 60% (for any reason) from FY1995 level.

Places a cap on this credit (20 percentage points for

FY2008, lesser amounts for earlier years). [Section

110(d)]

No provision.

No provision.

Establishes a percentage point “employment”

credit against the work participation standard

(subject to limits described above). Essentially,

the credit equals a multiple of the percentage of

TANF families in a month who leave ongoing

cash assistance with a job. It is calculated by

dividing (a) twice the quarterly average

unduplicated number of families (excluding

child-only families) that received TANF

assistance during the preceding fiscal year but

who ceased to receive TANF — and did not

receive cash assistance from a separate statefunded program — for at least two consecutive

months following case closure during the

applicable period (most recent four quarters with

data) and were employed during the calendar

quarter immediately after leaving TANF by (b)

the average monthly number of families (again

excluding child-only families) who received

cash payments under TANF during the

preceding fiscal year.

At state option,

calculations could include in the numerator: (1)

twice the quarterly average number of families

CRS-23

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

that received non-recurring short term benefits

rather than ongoing cash and who earned at least

$1,000 in the quarter after receiving the benefit,

and (2) twice the quarterly average number of

families that included an adult who received

substantial child care or transportation

assistance. If both these options were taken, the

denominator would be increased by twice the

number of families that received non-recurring

short-term benefits during the year and by twice

the quarterly average number of families with an

adult who received substantial child care or

transportation assistance. In consultation with

directors of state TANF programs, the Secretary

is to define substantial child care or

transportation assistance, specifying a threshold

for each type of aid — a dollar value or a time

duration. The definition must take account of

large one-time transition payments. [Section

109(d)]

Gives extra credit — as 1.5 families — to a

family whose earnings during the preceding

fiscal year equaled at least 33% of the state’s

average wage. [Section 109(d)]

Authorizes and requires the HHS Secretary to

use information in the National Directory of

New Hires to calculate state employment credits.

If the TANF leaver’s employer is not required to

report new hires, the Secretary must use

quarterly wage information submitted by the

state. To calculate employment credits for

families who received non-recurring short term

benefits and for those who received substantial

child care and transportation assistance, the

CRS-24

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Secretary is to use other required data. By

August 30 of each year, the HHS Secretary must

notify each state of the amount of the

employment credit that will be used in

calculating participation rates for the

immediately succeeding fiscal year. [Section

109(d)]

Sets October 1, 2005 as the effective date for

replacement of the caseload reduction credit by

the employment credit, but permits states to

have a one-year delay. If a state makes this

choice, its adjusted work participation standard

for FY2006 shall be determined by using both

the caseload reduction credit and the

employment credit (one-half credit for each).

[Section 109(d)]

Calculation of

participation rates

Participation rates equal the share of total families

(with adult and teen parent recipients) who work

sufficient hours in counted activities to be

credited as a participant.

The monthly

participation rate, expressed as a percentage,

equals (a) the number of all recipient families in

which an individual is engaged in work activities

for the month, divided by (b) the number of

recipient families with an adult or teen parent

recipient (but excluding families subject that

month to a penalty for work refusal, provided

they have not been penalized for more than three

months). States also may exclude from work

participation calculations single-parent families

with children under one, if they are not required

to work. States have the option to include in work

Participation rates equal the share of hours spent in

creditable activities out of a potential total of 160

hours monthly per counted family. (A counted

family is one whose household head receives

TANF assistance.) Monthly participation rate,

expressed as a percentage, is (a) the total number

of countable hours, divided by (b) 160 times the

number of counted families for the month. This

means that a family would receive full work credit

by working 160 hours a month, equivalent to a

weekly average of 37 hours — 160/4.33. (The

average month contains 4.33 weeks, not 4.) The

bill specifies that if a family does not engage in a

direct work activity for a weekly average of 24

hours, its countable hours for the month shall be

zero. However, under some circumstances, allows

Participation rates equal the share of total

families (with adult and teen parent recipients)

who work in countable activities. The monthly

participation rate, expressed as a percentage,

equals (a) the number of all recipient families in

which an individual is engaged in work activities

for the month, divided by (b) the number of

recipient families with an adult or teen parent

recipient (but excluding families subject that

month to a penalty for work refusal, provided

they have not been penalized for more than three

months). States also may exclude from work

participation calculations families with children

under one, if they are not required to work, and

all families during their first month of TANF

assistance. States have the option to include in

CRS-25

Penalty for failing

participation rate

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

participation calculations families in a tribal

TANF program or NEW job training program.

[Section 407(b) of SSA] [Note: except for teen

parents, single parents with a child under six, and

participants in a tribal program with different hour

requirements, families must work an average of at

least 30 hours weekly to be counted as working.]

credit for hours below 24. Allows credit for some

hours above 40. See Partial credit and Extra

credit below. [Section 110(e)]

work participation calculations families in a

tribal TANF program or NEW job training

program. Calculates weekly hours of work

activity by dividing monthly hours by 4. Allows

some credit for hours below or above the

standard. See Partial credit and Extra credit

below. [Section 109]

Permits states to exclude a new group from work

participation calculations — families in first month

of assistance. [Section 110(b)]

Same as House bill, except that the exclusion is

determined on a case-by-case basis. [Section

109(e)]

Permits states to exclude all families with infants

(not just single-parent families) from work

participation calculations, but requires case-by-case

determination of all work exclusions for parents of

infants. [Section 110(b)]

Same as House bill, except that it allows

exclusion of families of infants only for 12

months. [Section 109(e)]

Retains penalty rate of current law (including

increase in MOE requirement) for state failure to

meet participation standards.

Provides that penalty (beginning for FY2005)

must be based on the degree of substantial

noncompliance. Directs the Secretary to take

into account factors such as the degree to which

the state missed the participation rate, the change

in the number of persons engaged in work since

the prior year, and the number of consecutive

years in which the state failed to achieve the

work rate. Penalty may be reduced if the failure

is due to circumstances that caused the state to

meet the criteria for contingency funds or is due

to extraordinary circumstances such as a natural

disaster or regional recession.

Requires

Secretary, in a written report to Congress, to

Participation rates are enforced by a penalty on

states: loss of 5% of the state’s basic grant for

first year of violation (higher penalty for repeat

violations). Penalty must be based on the degree

of noncompliance and may be reduced if the

noncompliance is due to circumstances that made

the state needy under the contingency fund

definition or due to extraordinary circumstances

such as a natural disaster or regional recession.

State must replace the amount of federal penalty

funds with its own funds. [Section 409(a)(3) of

SSA] In addition, the state’s MOE spending

requirement rises from 75% to 80% of its historic

level.

CRS-26

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

justify any waiver or penalty reduction due to

extraordinary circumstances. [Section 110]

Countable activities

Listed in law or bill

Federal law lists 12 activities that count toward

meeting the participation standards.

Nine

activities have priority status and must account for

most weekly hours: unsubsidized jobs, subsidized

private jobs, subsidized public jobs, work

experience, on-the-job training; job search,

community service; vocational educational

training providing child care for certain TANF

recipients. Three other activities can receive work

credit: job skills training directly related to

employment; education directly related to work

(high-school dropouts only), and secondary

school attendance (high school dropouts). On one

occasion per person, a state may treat three or

four days weekly of job search as a full week’s

participation. [Section 407(d) of the SSA] See

Required Hours of Work.

Lists six “direct” work activities. Generally these

six activities must account for most weekly hours:

unsubsidized jobs, subsidized private jobs,

subsidized public jobs, on-the-job training,

supervised work experience, and supervised

community service. [Section 110(e)]

Lists 17 countable activities. Continues current

law list of 12 activities (treating the nine priority

activities in current law as direct work [core]

activities). Adds five “qualified” activities:

postsecondary education (including a parents as

scholars program, described below), adult

literacy programs or activities, substance abuse

counseling or treatment, programs or activities

designed to remove work barriers, as defined by

the state, and work activities authorized under

any waiver for any state that was continued

under Section 415 before the date of enactment

of this bill. Under some conditions, treats some

of the qualified activities as “rehabilitative” ones

(see below).

CRS-27

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

State options for

activities

None

States may define any other activity as countable

(generally for non-core hours) so long as it leads to

self-sufficiency and is consistent with the purposes

of TANF. [Section 110(e)]

Permits a state to deem a single parent caring for

a dependent with a physical or mental

impairment to be meeting all or part of the

family’s work requirement. Permits a state to

define countable work activities for persons

complying with a family self sufficiency plan

and living in areas of Indian country or an

Alaskan native village with high “joblessness.”

To qualify for this option, the state must include

in its TANF plan a description of its policies for

these areas. Also, as noted above, allows states

to define work-barrier removal activities and to

adopt activities authorized under any waiver for

any state that was continuing before the date of

enactment. [Section 109(f)]

Time limits on

activities

Job search — six weeks usual maximum (with no

more than four consecutive weeks). Period

allowed for job search doubles to 12 weeks if the

state meets the unemployment or increased food

stamp caseload criteria for a needy state under the

contingency fund or its unemployment rate is

more than 50% of the national average.

Vocational educational training, 12 month limit.

[Section 407(d) of the SSA]

No provision (maintains current law).

Removes time limits on job search and

vocational educational training for persons

receiving qualified rehabilitative services.

Deletes requirement that only four consecutive

weeks of job search can be counted within the

normal six week limit. Doubles the permissible

length of job search if the state meets the

unemployment rate or increased food stamp

caseload criteria for a “needy state” under the

contingency fund definition. [Section 109(f)]

For three consecutive months within 24 months,

persons may be deemed to meet the 24-hour

weekly direct work requirement by engaging in

short-term “qualified” activities chosen by the state

to promote self-sufficiency (examples listed in the

For three months in any 24-month period, a state

may give work credit for any hours spent in one

of the five “qualified” activities above — even if

the person has not engaged for 24 hours weekly

in direct work. To receive credit, the person

CRS-28

Current law

Numerical limits

No more than 30% of persons credited with work

may consist of persons participating in vocational

educational training or may be teen parents who

are deemed to be working because of satisfactory

attendance at secondary school or because of

spending 20 hours weekly in education directly

related to employment. [Section 407(c)(2)(D) of

SSA]

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

bill are substance abuse counseling or treatment;

rehabilitation treatment and services; work-related

education or training directly enabling the family

member for work; and job search or job readiness

assistance). [Section 110(e)]

must engage for an average of at least 24 hours

in a qualified activity, and the activity must be in

her self-sufficiency plan. [Section 109(f)]

On a case-by-case basis, and in order to permit a

person to complete a certificate program or other

work-related education or training program, a state

may give direct work credit for engaging in a

qualified program for a total of four months within

a 24-month period. [Section 110(e)]

In some cases a state may give work credit for a

second three-month period (within the 24-month

limit) — sometimes called the 3+3 plan — to

persons engaged in a combination of qualified

rehabiliitative activities and priority work

activities. Eligible for this period of extended

time are persons whose family self-sufficiency

plan requires engagement in one of three

qualified rehabilitative services, namely, adult

literacy programs or activities, participation in a

program designed to increase proficiency in the

English language, and substance abuse or

mental health treatment. Total hours of their

activity must average 24 hours weekly. {Section

109(f)]

Omits this provision from amended section on

counting participation.

Continues the 30% cap, but provides that it does

not apply to persons in a 3+3 program receiving

qualified rehabilitative services or to persons

engaging in vocational educational training as a

supplementary activity after meeting the 24 hour

“core” requirement. [Section 109(f)]

CRS-29

Current law

Parents as scholars

States may use TANF funds and MOE state funds

for postsecondary education. However, unless it

is defined by the state as “vocational educational

training,” postsecondary education is not

creditable toward TANF work participation

requirements.

H.R. 4 (House-passed)

No provision.

H.R. 4 (Senate Finance Committee)

Allows states to establish a program (under

Section 107) of undergraduate postsecondary

education (parents as scholars) or vocational

educational training for up to 10% of TANF

families. Hours of participation in the program

would be countable toward meeting state work

requirements. Students could also receive credit

for hours spent in one of the nine “direct” work

activities of current law or in work study,

practicums, internships, clinical placements,

laboratory or field work, or other activities that

would enhance their employability, as

determined by the state, or in study time (at the

rate of not less than one hour for every hour of

class time and not more than two hours for every

hour of class time. Students’ total time in

education, core work, work study, laboratory or

field work, study time, etc., would be countable

against hours requirements. Also, students could

be credited as one working family if, in addition

to complying with the full-time educational

participation requirements of their educational

program, they engaged in one of the countable

work activities above for at least the following

number of hours: six hours weekly in the first

year, eight hours in the second year, 10 hours in

the third year, and 12 hours in the fourth and any

later year. For good cause, states could modify

these hour requirements. To be eligible for these

programs, recipients would be required to

maintain satisfactory academic progress (as

CRS-30

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

defined by the institution operating the

program).

With good cause exceptions,

participants would be required to complete

requirements of a degree or vocational

educational training program within the normal

time frame for full time students. [Section

107(d)]

Required hours of

work activity

Generally, to count toward the all-family rate,

average weekly participation of 30 hours (20

hours in priority work activities) is required.

However, in the case of single parents with a

preschool age child (who constitute half of all

TANF cases), the hours requirement is 20 per

week. For two-parent families the standard is 35

hours (30 in priority work activity), but increases

to 55 hours (50 in priority activities) if the family

receives federally-subsidized child care. [Section

407(c)(1) of the SSA] For a single parent caring

for a child under age six, 20 hours of participation

satisfies the standard. [Section 407(c)(2)(B) of

the SSA]

Generally, states must engage all families with a

“work- eligible” member (married or single

household head who receives TANF assistance) in

a direct work activity or alternative self-sufficiency

activity for an average of 40 hours weekly (the

actual standard is 160 hours per month, equal to a

weekly average of 37 hours) — of which 24 hours

must be in one of the direct work activities listed in

the law and up to 16 hours may be in a TANFpurposeful activity chosen by the state. [Section

110(e)]

Establishes standard TANF work weeks as

follows: 24 hours for a single parent with a child

under age six; 34 hours for a single parent with

a child over six (with 24 hours in a priority

activity) 39 hours for a two-parent family (but

55 hours if that family receives federally funded

child care) — with most hours in a priority

activity. Families meeting the standard are

counted as one family in calculating the state’s

work participating rate. Those exceeding the

standard receive extra credit, and some who fall

short of the standard receive partial credit (see

below). [Section 109(f)]

Teen parents are deemed to meet the weekly hour

participation standard by maintaining satisfactory

attendance in secondary school (or the equivalent

in the month) or by participating in education

directly related to employment for an average of

20 hours weekly. [Section 407(c)(2)(C) of the

SSA]

Essentially the same as current law. Teen parents

are deemed to satisfy the (40-hour weekly) work

rule by virtue of satisfactory school attendance (or

the equivalent in the month) or by participating in

education directly related to employment for an

average of 20 hours weekly [Section 110(e)].

Counted as one working family is a teen parent

who maintains satisfactory school attendance or

participates in education directly related to

employment for an average of 20 hours weekly.

[Section 109(f)]

CRS-31

Current law

Partial work credit

None

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Families who meet the 24-hour weekly direct work

requirement but fail the 40-hour standard, receive

credit for all hours worked (but zero credit unless

meet the 24-hour direct work rule). Note:

Generally, to receive any credit for hours below the

standard, families must engage for all counted

hours in one of the six direct work (core) activities.

Exception, as noted above (time-limited activities)

a state may give direct work credit for hours spent

on education or training (as qualified activities) for

up to four months in a 24-month period.

Families who meet core work requirements but

fail the full standard receive partial credit as

follows: Credited as .675 of a family are single

parent families (with or without a child under

six) who have 20-23 hours of work and twoparent families with 26-29 hours of work (40-44

hours if they receive federally subsidized child

care). Counted as .75 of a family are single

parent families without a preschool child who

work 24-29 hours and two-parent families with

30-34 hours (45-50 if they receive child care).

Counted as .875 of a family are single parent

families without a preschool child who work 3033 hours and two-parent families who work 3538 hours (51-54 hours if they receive child care).

[Section 109(f)] Note: generally, to receive any

credit for hours below the 24 hour standard, a

single parent family must engage for all these

hours in one of the nine direct work activities

and a two-parent family must spend all hours at

or below 34 weekly in one of these activities (50

hours if the family receives federally funded

child care and has no disabled member).

However, as noted above (time-limited activities

— a state may give work credit for any hours

spent in one of the five qualified activities for up

to six months in a 24-month period).

CRS-32

Current law

Extra work credit

None

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Counts all hours worked above the 40 — hour full

weekly standard, provided 24 hours are spent in

direct work (or, for a limited time, in certain other

qualified activities) and no more than 16 hours are

in non-priority activities. [Section 110(c)]

Families who exceed the standard hourly work

requirement receive extra credit, as follows.

Credited as 1.05 of a family are single-parent

families who work 35-37 hours and two-parent

families who work 40-42 hours (56-58 hours if

they receive child care). Credited as 1.08 of a

family are single parent families who work 38 or

more hours and two-parent families who work

43 or more hours (59 or more hours if they

receive child care). [Section 109(f)]

Marriage Promotion

TANF goals and

purposes

Two purposes relate to marriage. One goal is to

end dependency of needy parents on government

benefits, with one of the stated means of

accomplishing the goal specified as marriage. A

second purpose is to encourage the formation and

maintenance of two-parent families.

The stated purpose of promoting the formation and

maintenance of two-parent families is modified to

read: encourage the formation and maintenance of

healthy, two-parent married families and

encourage responsible fatherhood. [New language

in italics] [Section 101]

Same as House bill. [Section 103(d)]

Funding for

marriage promotion

matching grants

No provision for special grants states may use

TANF block grants to promote formation and

maintenance of two-parent families (program goal

no. 4) and to promote marriage as a means of

ending dependence on government benefits (goal

no. 2).

Appropriates $100 million annually for FY2003

through FY2008 for 50% competitive matching

grants to states, territories and tribal organizations

for programs to promote and support healthy,

married two-parent families. Note: Grants are

funded by repeal of out-of-wedlock birth bonus in

current law. [Section 103(b)]

Appropriates $100 million annually for FY2004

through FY2008 for 50% competitive matching

grants to states, territories, Indian tribes, and

tribal organizations for programs to promote and

support healthy, married two-parent families.

Note: Grants are funded by repeal of out-ofwedlock birth bonus in current law. [Section

103(b)]

CRS-33

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Makes funds appropriated for FY2003 available to

the Secretary through FY2004 for grants for

FY2003). [Section 103(b)]

Makes funds appropriated for each of FY2004

through FY2008 available to the Secretary until

expanded.

Also, permits grantees to use funds without

fiscal year deadline. [Section 103(b)]

Provides that federal TANF funds used for

marriage promotion must be treated as state

matching funds for marriage promotion grants

(Section 111(b)(1) See Maintenance of Effort for

treatment of TANF spending on behalf of marriage

promotion.

Provides that federal TANF funds used for

marriage promotion may be treated as state

matching funds for marriage promotion grants

(Section 103(b). See Maintenance of Effort for

treatment of TANF spending on behalf of

marriage promotion.

No provision.

Provides that general rules governing uses of

TANF block grant funds (other than

administrative limit) shall not apply to marriage

promotion grants. [Section 103(b)]

CRS-34

Current law

Allowable activities

for marriage

promotion grants

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Grants may be used for many activities, including

advertising campaigns; education in high schools;

marriage education, marriage skills and

relationship skills programs that may include

parenting skills, financial management, conflict

resolution, and job and career advancement for

non-married pregnant women and expectant

fathers; pre-marital education and marriage skills

training for engaged couples and individuals and

couples interested in marriage; marriage

enhancement and marriage skills training programs

for married couples; divorce reduction programs;

marriage mentoring programs; and programs to

reduce marriage disincentives in means — tested

programs, if offered in conjunction with any other

listed activity.

Lists same activities as House bill, but specifies

that participation must be voluntary in marriage

education, marriage skills and relationships skills

programs, pre-marital education and married

skills training, marriage enhancement and

divorce reduction programs, and marriage

mentoring programs. Also, allows marriage

education, marriage skills, and relationship skills

programs for non-married recent parents.

No provision.

Forbids award of a grant unless the applicant has

consulted with experts in domestic violence or

with community domestic violence coalitions in

developing [marriage promotion] programs or

activities. Application must describe how the

program/activities will deal with issues of

domestic violence and how the grantee will

ensure that participation in the marriage

promotion program is voluntary. [Section

103(b)]

CRS-35

Research and

demonstrations on

marriage promotion

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

No special provision to fund research or

demonstrations.

However, available TANF

r e search fund s (see Res e a r c h a n d

Demonstrations, below) and other research funds

provided to the Department of Health and Human

Service may be used to evaluate marriage

promotion initiatives.

Appropriates $102 million each for FY2003

through FY2008 for research and demonstration

projects and for technical assistance to states, tribal

organizations, and other entities chosen by the

Secretary. Specifies that these funds must be spent

primarily on activities allowed under marriage

promotion grants (see above). (Sets aside $2

million yearly for demonstration projects for

coordination of child welfare and TANF services

to tribal families at risk of child abuse or neglect.)

Provides that funds appropriated for FY2003 shall

remain available through FY2004. [Section

115(a)]

Appropriates $100 million each for FY2004

through FY2008 for research and demonstration

projects and for technical assistance to states,

tribal organizations, and other entities chosen by

the Secretary. Specifies that 80% of these funds

must be spent on research and demonstration

projects, or for providing technical assistance, in

connection with activities allowed under

marriage promotion grants (see above). [Section

114(a)]

Forbids Secretary to pay these research funds to

an entity that has not consulted with domestic

violence experts in developing marriage

promotion programs (see above). [Section

114(a)]

State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions

State plan

requirements

Each state must outline (generally in a plan

effective for three fiscal years), how it intends to:

conduct a program providing cash assistance to

needy families with children and providing

parents with work and support services; require

caretaker recipients to engage in work (at state

definition) after 24 months of aid or sooner, if

then judged work-ready; ensure that caretakers

engage in work in accordance with the law; take

steps deemed necessary by the state to restrict use

Adds requirement that each state describe what it

will do to end dependence of needy families on

government benefits and reducing poverty by

promoting job preparation and work and;

encourage formation and maintenance of healthy,

two-parent married families, encourage responsible

fatherhood, and prevent and reduce the incidence

of out-of-wedlock pregnancies. Adds requirement

that each state describe any strategies that it is

undertaking to deal with (a) employment retention

Essentially the same as House bill. [Section

101]

CRS-36

Current law

H.R. 4 (House-passed)

and disclosure of information about recipients;

establish goals and take action to prevent/reduce

the incidence of out-of-wedlock pregnancies; and

conduct a program providing education and

training on the problem of statutory rape. In

addition, the plan must indicate whether the state

intends to treat families moving into the state

differently from others; indicate whether the state

intends to aid noncitizens; set forth objective

criteria for benefit delivery and for fair and

equitable treatment; and provide that, unless the

governor opts out by notice to HHS, the state will

require a parent who has received TANF for two

months and is not work-exempt to participate in

community service employment. In the plan the

state must certify that it will operate a child

support enforcement program and a foster care

and adoption assistance program and provide

equitable access to Indians ineligible for aid under

a tribal plan. It must certify that it has established

standards against program fraud and abuse. It

must specify which state agency or agencies will

administer and supervise TANF. In addition, the

state may opt to certify that it has established and

is enforcing procedures to screen and identify

recipients with a history of domestic violence, to

refer them to services, and to waive program

rules for some of them. [Section 402(a) of the

SSA]

and advancement for recipients; (b) efforts to

reduce teen pregnancy; (c) services for struggling

and noncompliant families and for clients with

special problems; and (d) program integration,

including the extent to which employment and

training services are provided through the OneStop Career Center System created under the

Workforce Investment Act of 1998. Requires each

state to describe strategies to improve program

management and performance. [Section 112].

Strikes provision requiring goals to reduce out-ofwedlock pregnancies and replaces it with

requirement that states establish specific numerical

performance goals, measures, measurement

methodology, and plans to improve outcomes

regarding each of TANF’s four goals.

Specifies that performance measures must be

consistent with criteria used by the Secretary in

establishing targets for the performance

achievement bonus.

Strikes provision requiring community service

after two months of benefits unless state opts out.

[Section 112].

H.R. 4 (Senate Finance Committee)

CRS-37

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Authorizes states to administer and provide TANF

services through contracts with charitable,

religious, or private organizations and to pay

recipients by means of certificates, vouchers, or

other disbursement forms redeemable with these

organizations. Stipulates that any religious

organization with a contract to provide welfare

services shall retain independence from

government and requires states to provide an

alternative provider for a beneficiary who objects

to the religious character of the designated

organization. [Section 104 of PRWORA]

Requires state plans to describe strategies and

programs to engage religious organizations in the

provision of TANF-funded services. [Section 112]

If state is undertaking efforts to engage faithbased organizations in providing TANF-funded

services or that otherwise relate to the charitable

choice provision of PRWORA, requires state

plans to describe these strategies and programs.

[Section 101(a)]

States must certify that they will provide equitable

access to TANF to Indians who are ineligible for

tribal family assistance programs. [Section 402(a)

of the SSA]

Requires tribal family assistance plans to provide

assurance that the state in which the tribe is located

has been consulted regarding the plan and its

design. [Section 112]

Same as House bill. [Section 101(c)]

Requires plan to describe how the state intends to

encourage equitable treatment of healthy, married

two-parent families under TANF. [Section 103(a)]

Same as House bill. [Section 101(c)]

No provision.

Requires the plan to include a report detailing

progress toward full engagement. [Section

101(a)]

No provision.

If state provides TANF-funded transportation

aid, requires certification by the governor that

state and local transportation officials and

planning bodies have been consulted in

development of the plan. [Section 101(a)]

CRS-38

Current law

H.R. 4 (House-passed)

No provision.

H.R. 4 (Senate Finance Committee)

Requires the HHS Secretary to develop a

proposed Standard State Plan Form for use by

states not later than nine months after date of

enactment of the bill.

Requires states to make drafts of proposed plans

(and plan amendments) available to the public

through a state-maintained Internet website and

through other means found appropriate by the

state available to the public proposed plan states

also must make TANF state plans in effect for

any fiscal year available to the public, by the

above means. [Section 101(b)].

Performance

measures

No provision. (However for the purpose of

awarding performance bonuses, the Secretary is to

develop a formula in consultation with the

national Governors Association and the American

Public Welfare Association.)

Requires the Secretary, in consultation with the

states, to develop uniform performance measures

to judge the effectiveness and improvement of state

programs in accomplishing TANF purposes.

[Section 112(c)]

Same provision. [Section 101(d)]

Rankings of states

Directs HHS Secretary to rank states in order of

success in moving recipients into long-term

private jobs and reducing the proportion of outof-wedlock births and in both cases to review

programs of the three states with highest and

lowest ratings. [Section 413(d) and(e) of the SSA]

Deletes “long-term” qualifier from private job

measure. Adds employment retention and ability

to increase wages to factors used for rankings.

[Section 112(d)]

Same as House bill except that it adds three other

new ranking factors: the degree to which

recipients have workplace attachment and

advancement, reducing the overall welfare

caseload, and, when a practicable method of

calculation becomes practicable, diverting

persons from making formal applications to

TANF. [Section 101(e)]

No provision.

In ranking states, Secretary must take into

account the average number of minor children

living at home in families with income below the

CRS-39

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

poverty line and the amount of TANF funding

provided to each state for these families.

[Section 101(e)]

Data collection and

reporting

States are required to collect monthly, and report

quarterly, disaggregated case record information

(but may use sample case record information for

this purpose) about recipient families in the

TANF program. [Section 411(a) of the SSA]

Required family information includes:

— county of residence,

— whether a member received disability benefits,

— ages of members,

— size of family and the relation of each member

to the family head,

— employment status and earnings of the

employed adult,

— marital status of adults;

— amount of unearned income received by

family members;

— citizenship of family members;

— number of families and persons receiving aid

under TANF (including the number of two-parent

and one-parent families);

— total dollar value of assistance given;

— total number of families and persons aided by

welfare-to-work grants (and the number whose

participation ended during a month);

— number of noncustodial parents who

participated in work activities;

— for each teenager, whether he/she is the parent

of a child in the family.

Requires quarterly reports to cover families in

MOE-funded separate state programs, as well as

those in TANF state programs. Permits the

Secretary to limit use of sampling by designating

core elements that must be reported for all families.

[Section 113(a)]

Same as House bill. [Section 112(a)]

CRS-40

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

— race and educational level of each adult;

— race and educational level of each child;

— whether the family received subsidized

housing medicaid, food stamps, or subsidized

child care (and if the latter two, the amount);

Adds race and educational level of each minor

parent. Deletes educational level of each child.

Strikes “if the latter two, the amount.”

Same as House bill.

— number of months that the family received

each type of aid under the program;

Strikes “each type” of aid and requires the reason;

if applicable, for extending aid beyond 60 months.

Same as House bill.

— number of hours per week, if any, that adults

participated in specified activities (education,

subsidized private jobs; unsubsidized jobs, public

sector jobs, work experience, or community

service, job search, job skills training or on-the

job training, vocational education);

Adds to reported activity list: training and other

activities directed at TANF purposes. Adds and

(job) placement to job search. Omits job skills

training and vocational education. Specifies that

work experience and community service are

“supervised.”

Same as House bill.

From a sample of closed cases, the quarterly

report is to give the number of case closures

because of employment, marriage, time limit,

sanction, or state policy.

Deletes marriage.

Same as House bill.

— information needed to calculate participation

rates;

Adds information needed to calculate progress

toward universal engagement.

Same as House bill.

— type and amount of assistance received under

the program; including the amount of and reason

for any reduction of assistance;

Deletes type of assistance.

Same as House bill.

Requires new information on recipient families in

the quarterly report:

— the date the family first received aid on the

basis of its most recent application;

— whether a self-sufficiency plan is established

for the family;

— the marital status of the parents of any child in

the family at the birth of the child, and if the

Same as House bill.

CRS-41

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

parents were not then married, whether the

paternity of the child has been established.

Requires quarterly reports to include the number of

families and persons who became ineligible to

receive TANF during the month (broken down by

the number that lost eligibility because of earnings,

changes in family composition that result in higher

earnings, sanctions, time limits, or other specified

reasons). [Section 113(c)]

Same as House bill. [Section 112(c)]

Use of sample data

For quarterly reports, permits states to submit

disaggregated case record data information on a

sample of families. [Section 411(a) of the SSA]

Authorizes Secretary to designate core data

elements that must be reported for all families.

[Section 113(b)]

Same as House bill. [Section 112(b)]

Monthly state

reports

No provision.

Requires states to submit monthly reports on the

number of families and persons receiving

assistance. [Section 113(e)]

Same as House bill except that it also requires

monthly reports on the number of families and

persons receiving assistance under separate state

programs funded with MOE dollars. [Section

112(e)].

Annual state reports

Regulations require states to annually submit a

program report (by December 31 of each year)

providing financial eligibility rules for all

programs funded by TANF or state MOE funds.

For each MOE program, reports are to include the

name, purpose, and eligibility criteria.

Requires states to submit an annual report on

characteristics of the state TANF program and

other state programs funded with MOE funds.

Required information: program name and purpose,

description of program activities, sources of

funding, number of beneficiaries, sanction policies,

and any work requirements. [Section 113(e)]

Same as House bill. [Section 112(e)]

Beginning with FY2005, states must submit to

HHS an annual report on achievement and

improvement under numerical performance goals

and measures.

Same as House bill. [Section 112(e)]

The HHS Secretary shall prescribe regulations

needed to define data elements and to collect

Same as House bill. [Section 112(d)]

Data elements

The HHS Secretary shall prescribe regulations to

define data elements for required state reports and

CRS-42

HHS reports

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

shall consult with the Secretary of Labor in

defining data elements regarding programs

operated with welfare-to-work funds.

necessary data and shall consult with the National

Governors Association, the American Public

Human Services Association, the National

Conference of State Legislatures, and others in

defining the data elements. [Section 113(d)]

Requires the HHS Secretary to make annual

reports to Congress that include state progress in

meeting TANF objectives (increasing

employment and earnings of needy families and

child support collections, and decreasing out-ofwedlock pregnancies and child poverty),

demographic and financial characteristics of

applicants, recipients, and ex-recipients;

characteristics of each TANF program; and trends

in employment and earnings of needy families

with children.

Sets July 1 of each fiscal year as the deadline for

the report. Deletes applicant families from the

report.

Adds requirement to report on

characteristics of MOE-funded programs. [Section

113(f)]

Same as House bill. [Section 112(f)]

The Secretary, within three months of receiving an

audit from a state, shall analyze it to identify the

extent and nature of problems related to the state’s

oversight of contracts between nongovernmental

entities and the state TANF program. [Section

113(g)]

No provision.

Requires the HHS Secretary to submit to four

committees of Congress annual reports on

specified matters about three groups: children

whose families lost TANF eligibility because of a

time limit, children born after enactment of TANF

to teen parents, and persons who became teen

parents after enactment. [Section 413(g) of the

SSA]

Single audit reports

TANF payments to states are subject to the Single

Audit Act.

CRS-43

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Research on state

programs

Requires HHS Secretary to conduct research on

effects, costs, and benefits of state programs.

Provides that Secretary may help states develop

innovative approaches to employing TANF

recipients and shall evaluate them. For six years,

appropriates $15 million yearly and directs how it

shall be divided. [Section 413(h) of the SSA.

(Note:

In subsequent appropriation acts,

Congress has rescinded these provisions and

appropriated research funds on a less prescriptive

basis under Section 1110 of the Social Security

Act, which deals with cooperative research and

demonstration projects.)

Continues these provisions and appropriates $15

million annually for them through FY2008.

[Section 115]

Same as House bill. [Section 114(b)]

Census Bureau

study

Directs the Census Bureau to expand the Survey

of Income and Program Participation (SIPP) to

obtain data with which to evaluate TANF’s

impact on random national sample of recipients.

Appropriates $10 million annually for seven

years. [Section 414 of the SSA]

Appropriates $10 million annually for FY2004

through FY2008 to the Census Bureau. Directs the

Bureau to implement or enhance a longitudinal

survey of program participation to permit

assessment of outcomes of continued reform on the

economic and child well-being of low-income

families with children, including those who

received TANF-funded aid or services. Survey

content should include information needed to

examine the issues of out-of-wedlock childbearing,

marriage, welfare dependency, beginning and

ending of spells of assistance, work, earnings, and

employment stability. To the extent possible,

survey is to provide state representative samples.

Funds are to remain available through FY2008 for

this survey. [Section 116(a)]

Same as House bill. [Section 115(a) and (c)]

provision.

Research,

evaluations, and

national studies

CRS-44

Current law

General Accounting

Office study

Waivers and

program

coordination

Permits the HHS Secretary to waive compliance

with requirements for TANF state plans (and for

child support plans), but not for any other part of

TANF law (including work standards, time limits,

funding rules, and penalties). [Section 1115 of

the SSA]

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

No provision.

Requires the secretary of Commerce to make

reports to the Ways and Means and Finance

Committees on the well-being of children and

families, based on data collected in the above

study. First report is due two years after

enactment; the second one, five years after

enactment. [Section 115(b)

Directs the General Accounting Office to study the

combined effect of the phase-out rates for federal

programs that provide support to low-income

persons and families moving from welfare to work,

at all earning levels up to $35,000 per year, for at

least five states, including Wisconsin and

California. Study is to include any potential

disincentives to marry or achieve independence

that are created by the combined phase-out rates.

Report is due to Congress not later than one year

after enactment. [Section 116(b)]

No provision.

Creates “superwaiver” authority for states (or

portions of a state) to coordinate rules of specified

programs for low-income families. Covers these

10 programs and activities: TANF, Welfare-toWork grants, SSBG, Job Opportunities for LowIncome Individuals (JOLI), Title I of WIA

(excluding JOB Corps), Adult Education and

Family Literacy Act, CCDBG, U.S. Housing Act

(excepting Section 8 rental assistance and setasides for the elderly and disabled), Homeless

Assistance Act; and the food stamp program.

Specified provisions (including non-financial food

stamp rules and any funding restriction in an

appropriations act) could not be waived. Also nonwaivable:

Civil rights provisions, program

Creates “superwaiver” authority for up to 10

states (including any portion of a state) to

coordinate rules of three specified programs for

low-income families (all under jurisdiction of the

Finance Committee): TANF, SSBG, child care

entitlement funds. Essentially the same as in the

House bill are most provisions, including:

application procedures, rules for cost neutrality,

non-waivable provisions, program purposes, and

project duration. Evaluation rules are more

detailed. Applicants must give assurances that

they will obtain an evaluation by an independent

contractor and that random assignment of clients

to services and control groups will be used to the

maximum extent feasible. [Section 114(c)]

CRS-45

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

purposes or goals, state spending requirements,

health or safety rules, labor standards, and others

Funds could not be transferred from one account to

another, and projects could not increase federal

costs. Waivers would be valid for up to five years.

Purposes:

supporting working persons and

families, helping families escape welfare

dependency, promoting child well-being, or

helping build stronger families. Applications to

waive specific provisions of two or more programs

could be made by the head of a state entity or a

sub-state entity administering the programs.

Waiver approval would be required by each

relevant Secretary. In general, an application

would be deemed approved unless disapproved

within 90 days. Requires annual reports to

Congress. Applicants must give assurance that

they will conduct ongoing and final evaluations.

[Section 601]

Authorizes five states to replace food stamps with

demonstrations of food assistance block grant

projects. [Section 602]

No provision..

Not later than six months after enactment, requires

the Secretaries of HHS and Labor to submit a joint

report describing common or conflicting data

elements, definitions, performance measures, and

reporting requirements in the Workforce

Investment Act and TANF law. [Section 115(d)]

No provision.

CRS-46

Definition of

assistance

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Receipt of assistance by a parent or other

caretaker relative triggers work and time limit

rules. Law does not define the term. By

regulation, assistance is defined as ongoing aid to

meet basic needs, plus support services such as

child care and transportation subsidies, for

unemployed recipients. It excludes non-recurrent

short term benefits.

Defines “assistance” to mean payment, by cash,

voucher, or other means, to or for an individual or

family to meet a subsistence need, but not

including costs of transportation or child care. It

excludes non-recurrent short-term benefits.

[Section 117]

Same as House bill. [Section 117]

Makes a number of technical corrections to current

law. [Section 118]

Same as House bill [Section 120]

Makes state TANF programs mandatory partners

with one-stop employment training centers

established under the Workforce Investment Act

unless the governor of a state decides otherwise

and so notifies the Secretaries of Health and

Human Services and Labor. [Section 120].

No provision.

Provides that it is the sense of Congress that a state

welfare-to-work program should include

mentoring. [Section 121]

No provision.

Federally-funded “assistance” to a family with an

adult is limited to 60 months; states may impose

shorter time limits. By regulation, assistance is

defined as ongoing aid to meet basic needs, plus

support services such as child care and

transportation subsidies, for unemployed

recipients. It excludes non-recurrent short term

benefits.

Technical

corrections

State option to

make TANF

programs

mandatory partners

with one-stop WIA

centers

Sense of the

Congress

The Workforce Investment Act (WIA) makes

TANF an optional partner with one-stop

employment training centers.

CRS-47

Enforcing support

of immigrants by

sponsors

Extension through

FY2003

Current law

H.R. 4 (House-passed)

H.R. 4 (Senate Finance Committee)

Requires sponsors of immigrants to sign a legally

enforceable affidavit of support. Deems all

income and resources of a sponsor (and the

sponsor’s spouse) as available to the sponsored

alien until he or she becomes naturalized or

meets a work test. [Sections 421 and 423 of the

SSA]

Not later than March 31, 2004, requires the HHS

Secretary, in consultation with the Attorney

General, to submit a report on the enforcement of

affidavits of support and sponsor deeming required

by P.L. 104-193. [Section 115(c)]

No provision.

Except as otherwise provided in this Act and the

amendments made by it, activities authorized by

the TANF part of the Social Security Act (SSA)

and by Section 1108(b) of the SSA (TANF and

child welfare in the territories) shall continue

through FY2003, in the manner authorized, and at

the level provided, for FY2002. [Section 122].

No longer relevant.

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