Transferring TANF funds. One state, Massachusetts, nearly reached the limit in transferring 24 percent of its welfare funds. Total Spending . Direct Services . States spent the vast majority of funds on providing services to families.
States have flexibility on how services are provided to children.
Most parents receive certificates or vouchers which they present to child care providers which include family day care, centers or caregivers in the family's home. Some states reimburse providers directly through contracts in addition to offering certificates to families. Quality Services . Under the block grant, states must spend a minimum 4 percent of funds for quality services. States did spend additional funds on quality from the pre-FY 1997 allocation, but were not required to report those amounts for the FY 1997 financial reports.