The new welfare reform law requires states to continue to spend state funds at a level equal to at least 80 percent of their FY 1994 levels. If states meet the minimum work participation rates, the law also allows them to reduce their minimum-spending requirement to 75 percent. In FY 1998, all states expended enough to meet the 75 percent maintenance of effort amount. Since states are not required to report any expenditures in excess of the maintenance of effort requirement, states may actually be spending more than reported. Child Care .
Child care continues to be a critical support for families moving from welfare to work.
States report they are committing over 99 percent of their child care block grant funds. Work Activities, Cash Assistance, and Other Supports . States furthered the goal of the welfare law by making work first the priority for their programs. Transferring TANF Funds . The new welfare law gives states the authority to transfer portions of their TANF grant to either the Child Care and Development Block Grant or the Social Services Block Grant.