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Alabama faces battle at the ballot box; groups look to federal laws for protection; Israeli Cabinet votes to shut down Al Jazeera in the country; Florida among top states for children losing health coverage post-COVID; despite the increase, SD teacher salary one of the lowest in the country.

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Most NY TANF Money Isn't Spent on Core Areas

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Monday, January 16, 2017   

NEW YORK – A new study shows that many states, including New York, use less than half of their Temporary Assistance for Needy Families (TANF) funds for basic assistance, work programs and child care.

A policy brief, prepared by the Center on Budget and Policy Priorities, shows that some states spend less than 20 percent of their TANF funds in core welfare reform areas.

Liz Schott, co-author of the study, says when TANF block grants were adopted 20 years ago they were touted as a way to give states more flexibility to get funds to the neediest families and help recipients prepare for work.

"What this data shows is that's not what has happened,” she points out. “The states are not using half the money to do those things. So the block grant was a little bit of a bait-and-switch."

The study shows that New York only uses 40 percent of its combined state and federal TANF funds for basic assistance, work-related activities and support services like child care.

Much of the other 60 percent still is benefiting those who are less well off. According to Schott, more than a quarter of the state's combined TANF funds are being used to give low-income, working New Yorkers Earned Income Tax Credits.

"So what we see for something like that is the money is going to help people who are still low-income, but they're less poor and the money's not going to help the people at the very bottom," she explains.

New York ranked 35th among the states for the percentage of TANF funds spent on core activities.

Schott contends the law needs to be revised to define who is needy, and to restrict what TANF dollars can be used for.

"States should be required to spend at least half and more like 60 percent on the core activities,” she states. “So states should have more constraints."

Schott also cautions against extending that same kind of flexibility in the way states spend federal money to other programs.





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