One of the most significant aspects of the legislation is that it ends a 30-year history of entitlement to these programs. Poor children no longer have assurance of getting basic cash assistance even if parents meet all eligibility requirements and are prepared to work. If states run out of block grant funds before a year ends, they now have the option of placing new applicants on a waiting list. States are only required to contribute 75 percent of what they spent on these programs in 1994-this is called maintenance of effort. The legislation also prevents states from using TANF funds to provide cash aid, work slots or noncash aid like rent vouchers, to most families who have received any form of block grant assistance for a total of five years.
States have the option of imposing stricter time limits.
Families are no longer entitled to such assistance and states are no longer entitled to federal matching funds for spending on such programs. Legal immigrants are now ineligible for most forms of assistance, including Medicaid, Food Stamps and SSI for the elderly and disabled poor. Food Stamps and SSI will be denied them until legal immigrants become U.S. citizens. For the elderly and infirm who are unable to learn what they need to become citizens, this will mean denial of benefits for the rest of their lives. States can also opt to deny Medicaid benefits to legal immigrants already in the country and declare them ineligible for TANF for as long as they choose.