Current Federal Policies | Analysis of Policy Proposals | Workforce Research Analysis of Policy Proposals House Passes TANF Reauthorization Legislation The House of Representatives passed its version of TANF reauthorization legislation by a vote of 229 to 197 on May 16th. A Democratic substitute for the bill was defeated by a vote of 222 to 198. The bill (H.R. 4737 in its final form) contains severe restrictions on education and training, increases work requirements and work participation rates, continues the five-year time limit on the receipt of benefits, and provides no increase to block grant funds. The bill closely resembles President Bush's outline for TANF reauthorization released in February. In terms of work requirements and education and training, the legislation: Requires families to participate in work activities for 40 hours per week, and requires that 24 of those hours be spent in direct work or work activities. Work activities are limited to: unsubsidized employment, subsidized private sector employment, subsidized public sector employment, on-the-job training, supervised work experience, and supervised community service. The remaining 16 hours are left to the states to specify how they are used. States may also count for no more than three months every 24 months the following as direct work activities: substance abuse counseling or treatment, rehabilitation treatment and services, "work-related education or training directed effectively at enabling the family member to work", and job search or job readiness assistance. In a special rule applicable to education and training, states may permit four months of education and training for individuals to complete certificate programs or other work-related education and training. Raises state work participation rates to 70 percent (up from the current 50 percent by five percent per year until 2007). Modifies the current caseload reduction credit, with states only receiving credit towards their work participation rates if their overall caseloads fell over the previous three-year period. In terms of integration of TANF with the Workforce Investment Act (WIA), the bill: Includes WIA in its troubling "superwaiver" provision, which would allow states to seek exemptions from many federal rules governing a number of social service programs. The legislation does, however, contain a cross reference to WIA that assures that nothing beyond existing waiver authority in WIA would be able to be waived by governors, effectively protecting funding at the local level. Language inserted in the bill by the Appropriations Committee as it approached the House floor further prevents governors from having the ability to shift federal funding allocations between programs that are included in the superwaiver. (For more information about the superwaiver in general, please visit http://www.cbpp.org/5-13-02fs2.htm.) Makes TANF a mandatory partner in the WIA one-stop system unless a state's governor chooses to opt out of this provision. The bill modifies state plans by requiring states to describe strategies for promoting job preparation and work, and to address specifically employment retention, advancement, and placement in high-demand jobs. State plans are also required to describe plans for program integration "including the extent to which TANF employment and training services are provided through the One-Stop Career Center system created under the Workforce Investment Act and the extent to which former recipients of such assistance have access to additional core, intensive, or training services funded" through WIA. The bill also provides a bonus of $100 million per year to reward employment achievement and would measure state performance in the areas of employment entry, job retention, and increased earnings. Despite suggesting increased integration between the welfare and workforce systems, and providing rewards for employment outcomes, the increase in work hours and restrictions on education and training will severely limit recipients' ability to take advantage of opportunities to obtain the skills many need to achieve family-supporting jobs, and will limit states' flexibility to provide services individuals need.