States can use TANF funds to improve child care. The lack of affordable and accessible child care is one of the most common reasons parents cite for leaving the workforce. Fully one-third of mothers with children ages six or younger, and 40 percent of mothers with infants, do not work due to the difficulty of securing child care. Under TANF regulations, states can directly transfer up to 30 percent of their TANF funds into the existing child care block grant the Child Care Development Fund. States can use TANF funds to deliver reliable transportation.
Transportation is critical to help parents secure good jobs with higher wages and benefits.
The flexibility of TANF and MOE funds has allowed states to produce creative ways to address families transportation needs. States can use TANF funds to create more affordable housing. Research shows that families with stable housing earn more and keep working longer. Families with housing subsidies are more likely to stay off public assistance than other low-income families. States can use TANF funds to provide families with direct housing subsidies.