TANF/CalWORKs Federal Proposed Cuts

Federal Budget
TANF/CalWORKs Federal Proposed Cuts - 2006

TANF Changes in the Budget Reconciliation Bill will negatively affect poor families with children.

In late December, the U.S. Senate approved�with a few minor changes� the House-passed budget reconciliation bill conference report (S. 1932). This bill includes language reauthorizing the TANF program for five years and making certain other changes to TANF.

A copy of the bill�s provisions related to TANF (and to the child care and development fund and the child support enforcement program) is available at: http://inclusionist.org/files/TANF%20Provisions.pdf. There is also a side-by-side analysis comparing the policy provisions included in reconciliation to current law as an appendix to this paper.

Additional resources:
CLASP Center for Law and Social Policy:
New TANF Requirements Could Result in New Large Costs and Risk of Federal Penalties for California

Center on Budget and Policy Priorities / Economic Policy Institute:
Income Inequality has Increased in California Over the Past Two Decades

Some TANF funding changes made by the reconciliation bill are:
(Click Here for the complete document.)

� The basic TANF block grant would be extended (at current funding levels) until FY2010.

� Mandatory child care funding would be increased by $1 billion over five years. (The previous Senate TANF bill provided $6 billion over five years for child care funding�this funding was partially offset by the cuts to the EITC noted above�while the previous House bill provided only $500 million over five years).

� TANF supplemental grants would be extended, but for only three years.

� Existing TANF bonuses�a High Performance Bonus based on states� progress toward meeting TANF goals ($200 million per year) and a bonus for reducing out-of-wedlock pregnancies ($100 million per year)�would be eliminated.