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Analysis of Policy Proposals

House Republicans' TANF Bills Resemble Bush Reauthorization Plan

Republican members of the House Ways and Means and House Education and the Workforce Committee introduced their respective bills to reauthorize the Temporary Assistance for Needy Families (TANF) program on April 10th. Wally Herger (R-CA), the Chairman of the Ways and Means Human Resources Subcommittee (which has primary jurisdiction over TANF in the House) introduced the "Personal Responsibility, Work and Family Promotion Act of 2002" (H.R. 4090) and Howard "Buck" McKeon (R-CA), Chairman of the Education and Workforce Committee's 21st Century Competitiveness Subcommittee (which has jurisdiction over some of TANF's work provisions) introduced the "Working Towards Independence Act" (H.R. 4092).

Both bills closely resemble President Bush's outline for TANF reauthorization released in February. In terms of work requirements, and education and training, both bills:

  • require families to participate in work activities for 40 hours per week, and require 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 3 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. Like the Bush plan, the increase in work hours and restrictions on education and training will severely limit recipients' ability to obtain the skills many need to achieve family-supporting jobs.

  • raise state work participation rates to 70 percent (up from the current 50 percent by 5 percent per year until 2007). Also like the Bush plan , this provision, combined with a rise in required work hours, will limit state flexibly to provide needed services to TANF clients, including education and training, and could force states to create ineffective work experience programs to meet the increased participation rate.

  • modify 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.

Both bills also eliminate existing state waivers and propose a new broad waiver authority for states for demonstration projects for individual or integrated programs. There is concern regarding this "super waiver" in that it may allow the Secretaries of Health and Human Services, Labor, and Education to waive any rule (except in Medicaid) at the request of a state. With the exception of cost-neutrality, there are few restrictions on what rules Departments may waive. (For more information on this provision, see Center on Budget and Policy Priorities link, below).

Both bills modify state plans by requiring states to describe strategies for promoting job preparation and work, and to specifically address 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 WIA] and the extent to which former recipients of such assistance have access to additional core, intensive, or training services funded" through WIA. While increased workforce program integration at the local level would be beneficial to TANF clients, the severe restrictions on TANF recipients' opportunities for training under the Republican plan will limit their ability to take advantage of WIA services.

Both plans also provide a bonus of $100 million per year to reward strong state performance in the areas of employment entry, job retention, and increased earnings. The McKeon bill indicates that that the measures for TANF employment achievement under the bonus are consistent with core performance measures under WIA.

House Republican plans continue the five-year time limit on the receipt of benefits, provide no increase to block grant funds, and request $300 million in funds to encourage marriage.

To read the Center on Budget and Policy Priorities' analysis of the Herger bill, please visit http://www.cbpp.org/4-10-02wel.htm


 

   

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