If they meet minimum work participation requirements, their mandatory State effort is reduced to 75 percent. The assistance grant may be reduced for failure to meet any of 15 different program and fiscal requirements. Penalties may be waived for reasonable cause or upon implementation of an approved corrective action plan. They may reserve grant moneys, without fiscal year limitation, for providing assistance. With certain exceptions, most families are limited to no more than 5 years of assistance under the Federal grant.
Tribes have the flexibility to establish time limits on receipt of assistance.
For contingency funds, grant awards are issued monthly to eligible States and families no longer receiving assistance. States, Territories and Tribes are also required to report administrative costs and overhead expenditures on programs for needy families, participation by noncustodial parents in work activities, and transitional services provided to former recipients. States, Territories and Tribes must report child poverty information annually in accordance with a methodology established by the Secretary. Audits shall be conducted by the Inspector General under Chapter 75 of Title 31, United States Code. If a State or Territory is found to have used funds from the State Family Assistance Grant in violation of the Statute, the Secretary shall reduce the grant payable to the State for the immediately succeeding fiscal year by that same amount.