TANF Reauthorization

A New Basic Workforce Development Program?

Status of Legislation in Congress

Bush Administration Bill – Late FebruaryHouse Bill (H.R. 4737) – Passed May 16Senate Bill (Amendment to H.R. 4737)

> Reported July 25

> Waiting for “preconference” deal

> Senate debate not yet scheduledDeadline for reauthorization is REAL

TANF Funding

Basic block grant - $16.5 million level-funding to September 30, 2007

State maintenance-of-effort (matching) funds remains 75% of FY 1994 level

Senate adds $440 million (House $320) supplemental grants to 24 states with low TANF funding, high population growth

Same $2 billion contingency funds for rising unemployment, food stamp cases

TANF Child Care Funding

Now $2.7 billion entitlement, $2.1 billion annual discretionary funding

House adds $200 million to mandatory, $480 million to ceiling on discretionary

Senate adds $1.1 billion to mandatory plus $30 million for at-home infant care demonstrations

Bonuses for TANF Performance

Currently $200 million for high perfor-mance in work, work supports, family formation; $100 million for nonmarital birth reduction

House cuts to $100 million for high performance based on work alone

Senate drops both high performance and nonmarital birth bonuses, puts funds in Business Link Partnership grants

Senate’s Business Links Plan

Authorizes $200 million annually for competitive grants to local governments, workforce board, nonprofits

Partnerships to engage employers in improving wages & skills of low-income

Could establish transitional jobsDevelop seed funds to capitalize delivery

of self-sustainable social services

Universal Engagement . . .

Currently, state options to ensure how adults are “engaged in work” in 2 years

House requires self-sufficiency plans for all parents and caretakers in 60 days

Senate requires Individual Responsibility Plans (IRPs) for all adult recipients – plans must address work activities, work supports, and child well-being

Assessment Intensified

Currently, initial assessment of skills, prior work experience, employability

House follows current law, but allows “manner deemed appropriate by state”

Senate continues current law, but adds assessment of barriers to employment, using model screening tools built by HHS and advisory review panel to “improve state policies for assisting individuals with barriers to work”

Participation Rates, Hours, Credits

Both House and Senate jump up 5% per year from 50% now to 70% in FY 2007

Single parents now must “work” 30 hours per week (20 hours with small child)

House required 40 hours for all parents; both would add partial credit for lower minimums

Senate drops caseload reduction credit in favor of employment credit, higher earnings credit, and counting non-cash recipients of child care or transportation

Countable Activities

Current primary: work, job search for 6 weeks, “vocational educational training,” providing child care

Secondary now includes skill training, education related to employment

Senate adds “rehabilitative” activities, allows 8 weeks of job search

House drops “vocational educational training,” gives state flexibility on secondary activities

Education and Training

Senate counts vocational education for 24 months, double current allowance

House allows for 3 months in a row every 24 months, if work-related

Senate counts adult basic education for six months, allows states to count postsecondary education for up to 10% of state caseload

Other Provisions

5-year limit on cash benefits maintained (TANF-paid wage subsidies count)

Senate OKs use of New Hire information to detect fraud in unemployment comp

TANF required to be partners with one-stop centers, unless state opts out

Multiple worker protection provisions like those in WIA

Waivers

Old AFDC waivers -- continued to now under TANF -- run to expiration date

> AZ and NE expire this Fall

> MT, OR, TN and VA expire in 2003

> HI and MA expire in 2005“Superwaivers” in House billSenate relies only on extending current

waivers