TANF Contingency and Supplemental Funds

Testimony

TANF Contingency and Supplemental Funds

Testimony before the United States' House of Representatives Subcommittee on Human Resources Committee on Ways and Means
April 26, 2001

Abstract

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 created a fixed level of block grant funding to states to pay for the Temporary Assistance to Needy Families (TANF) program. Since the size of the block grant itself does not vary in response to changing economic circumstances (such as a downturn) that might create greater caseloads, the 1996 legislation also established a contingency fund of $2 billion to provide states with an additional source of revenue in case of unforeseen developments.

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