Home > Uncategorized > Center on Budget and Policy Priorities – Federal TANF Funding Shrinking While Need Remains High

Center on Budget and Policy Priorities – Federal TANF Funding Shrinking While Need Remains High

From Center on Budget and Policy Priorities:

Federal TANF Funding Shrinking While Need Remains High

By Liz Schott and LaDonna Pavetti, Ph.D.

“With unemployment high and millions of families in need, for the first time since 1996 when President Clinton and Congress created the Temporary Assistance for Needy Families (TANF) block grant as part of welfare reform, no additional TANF funds are available from the federal government to help states respond to the large increases in the number of impoverished families as a result of a recession.”

States Will Have Less TANF Funding in FY 2011 Than in FY 2009-FY2010

Among the states hit hardest are those that have faced higher-than-average unemployment rates and significant state budget shortfalls.

For example:

  • South Carolina and Oregon will both receive 16 percent less in federal TANF funding in 2011 than in 2009 and 2010. Oregon is facing an unemployment rate of 10.6 percent and had a biennial budget gap equal to 34 percent of its 2009-2011 budget. South Carolina has an unemployment rate of 11.0 percent and had a budget gap equal to 25.6 percent of its 2011 budget.
  • Nevada, which is facing 14.4 percent unemployment and had a 2011 budget gap equal to 54 percent of its budget, will receive 17 percent less in federal TANF funding in 2011 than its average annual level for 2009 and 2010.

View the full report:
http://www.cbpp.org/cms/index.cfm?fa=view&id=3345
http://www.cbpp.org/files/12-16-10tanf.pdf 13pp.

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