We have received inquiries from a number of Tribes operating TANF programs about the proper use of Tribal TANF grant funds and the application of negotiated indirect cost rates to Tribal TANF grant funds. The purpose of this policy announcement is to provide guidance as to what are considered proper uses of Tribal TANF grant funds, how these indirect cost rates may be applied to the Tribal TANF grant, and how the penalty provisions of the Act will be applied for improper application of indirect cost rates to the Tribal TANF grant. Furthermore, amounts paid to recipients in the form of cash assistance with TANF block grant funds must be considered as passthrough funds and therefore may not be included in the base amount when a negotiated indirect cost rate is applied to a TANF grant. In addition, TANF funds are not authorized to be used to contribute to or otherwise support non-TANF programs. Use of TANF funds by Tribes to support non-TANF programs shall be considered an improper use of TANF funds.
Administrative expenditures consist of both direct administrative costs and indirect costs.
We intend to address in regulations the proper use of TANF block grant funds, including use of funds for administrative expenditures.