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Analysis of Policy Proposals

Senator Rockefeller Introduces TANF Legislation

On March 21st, Senator John D. "Jay" Rockefeller (D-WV) introduced comprehensive legislation (S. 2052) to reauthorize the Temporary Assistance for Needy Families (TANF) Program. In general, the bill increases the block grant by $2.5 billion over five years, from $16.5 billion in 2003 to $17.4 billion on 2007. The bill also renews and expands supplemental grants, reinstates the contingency fund, increases money for child care, and provides $300 million bonus fund to reward states for reducing poverty.

In the areas of education and training, the Rockefeller bill:

  • Counts vocational education as an allowed work activity for 24 months (the current limit is 12 months).
  • Removes teen parents from counting towards the 30 percent cap on the number of recipients who can be engaged in education and training activities and count towards a state's work participation rate.
  • Counts English as a Second Language (ESL) as a permissible pre-employment activity.
  • Provides $200 million in grants to create transitional jobs programs, and for nonprofit organizations, local workforce investment boards, or localities to create programs that promote linkages with businesses to upgrade the skills of TANF recipients and strengthen career pathways for low-income workers.
  • Allows up to five percent of a state's caseload to be involved in programs that combine work and post secondary education.
  • Provides $75 million in grants to states to improve policies and procedures for assisting individuals with barriers to work.
  • Replaces the caseload reduction credit with an employment credit that rewards states for families that leave welfare for work, with additional credit for those leaving for higher-paying jobs. This provision was introduced separately by Senator Blanche Lincoln (D-AR) and Rep. Sander Levin (D-MI). Click here for Lincoln proposal

Many of these provisions are core elements of the Workforce Alliance's TANF reauthorization platform, including increasing the 12-month limit on training, eliminating the 30 percent cap on the percentage of a state's recipients that can be engaged in training activities, including post-secondary education as a countable work activity, and encouraging states to emphasize training as part of a strategy for improving employment outcomes.



 

   

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