States no longer have unlimited access to federal funds. Medicaid was not changed to a block grant and remains an entitlement program. A life time limit of 60 months or five years is imposed on families receiving Temporary Assistance to Needy Families. The clock which counts months towards receiving assistance began to tick on January 1, 1997. Any assistance received before that date does not count towards the 60 month life time limit.
States also have the option to impose shorter time limits.
Some states have chosen to shorten the life time limits but not Iowa. The focus was on moving people to self sufficiency, which may be more difficult with a 60-month time limit. Now training and job placement services will need to be accelerated to meet this requirement. People may no longer be able to enroll in 2-4 year academic programs. Welfare recipients are required to work within two years.