TANF Proposed Rule Limits State Flexibility

Earlier this month, the Administration for Children and Families (ACF) published a notice of proposed rulemaking (NPRM) to ensure that states use Temporary Assistance for Needy Families (TANF) funds in accordance with statute. The proposed rule would curtail some existing state flexibilities. For example, it would require that all expenditures subject to the program’s needs standard be limited to individuals in families with incomes at or below 200% of federal poverty guidelines, limit allowable uses of funds by adopting a new “reasonable person” test, and prevent states from using third-party non-governmental funds as maintenance-of-effort (MOE) expenditures. This brief summarizes the proposed changes.