Under welfare reform states are given the TANF block grant, a set amount of funds they receive each year through Fiscal Year 2002. How a state chooses to use its TANF block grant and its MOE money provides important advocacy opportunities. Federal TANF funds subject TANF recipients to the 60-month life time limit on cash assistance, work requirements driven by a state s work participation rates, and some data reporting requirements. Under TANF states may also keep a portion of a family s child support payment to reimburse state expenses associated with welfare. Depending on how a state chooses to use its state funds, families may be protected from some or all of these burdens.
States have three basic options for how to use their federal and state funds.
They may combine or commingle the funds and treat state and federal funds the same. Under this scenario state funds will also trigger all of the requirements mentioned above. States may also segregate federal and state funds. If a state chooses to segregate, or separate out state funds from TANF funds, within a TANF supported program, the federal life time limit on benefits will not count for services provided by those state funds. Families served with segregated funds will continue to be subject to work requirements, data reporting requirements and child support rules.