When most people think of “welfare,” they’re probably thinking of Temporary Assistance for Needy Families (TANF). TANF provides enrollees with cash to cover basic expenses, such as housing, utilities, and even childcare.
Households eligible for TANF often meet the requirements for other assistance programs, including SNAP (food) and Medicaid (health insurance). The program’s ultimate goal is to end dependency on assistance. Because of this objective, enrollees must follow specific rules and can only receive benefits for a set period.
Fortunately, enrolled households can receive support services to help them gain economic and family stability.
Who can get TANF?
As the program’s name indicates, TANF is for families in need. Unlike other government assistance programs, individuals and households without children do not usually meet the core requirements.
TANF is a federally funded, but state-run program. Meaning, there are basic eligibility requirements that apply nationwide, and states can set additional rules. The federal requirements include the following:
- Households must have a dependent child younger than 18 years of age, or 19 if they are still in high school, or be pregnant.
- U.S. citizens or qualified non-citizens. Generally, applicants must be U.S. citizens or qualified non-citizens. However, children who are citizens may be eligible even if their parents are not. And there may be a five-year waiting period for new lawful permanent residents.
- Low income and resources. Income and asset (savings) limits are relative to the Federal Poverty Level (FPL).
- Adults must work. All adults must work or participate in work activities (like training or searching for employment) for a minimum number of hours each week (usually 30). There are some exceptions for parents with very young children.
Many states implement additional requirements, such as being a resident of the state and requiring each household member to have a Social Security number. Additionally, states set the specific income and resource limits and any other requirements, like cooperation with child support enforcement.
The state may choose to tie eligibility to a Personal Responsibility Plan (PRP), which outlines the parents’ strategy to reach independence. For example, a PRP may have obligations like:
- Children attending school and receiving immunizations.
- Adults working or participating in activities that lead to employment.
- Avoiding alcohol abuse or drug use and possession.
To check if your family meets all criteria, contact your local agency. They can clarify specific state rules, income limits, and work requirements to help you secure the support you need.
How is TANF Funded?
The federal government gives “block grants” to states. A block grant is money that must be used for specific costs. For 2026, the U.S. government sends an approximate total of $16.5 billion, which is divided amongst all 50 states, the District of Columbia (D.C.), and tribes. This total amount is not divided equally.
For example, the five highest state family assistance grants in 2023 were:
- California, 3.7 billion
- New York, 2.4 billion
- Michigan, 772 million
- Ohio, 725 million
- Pennsylvania, 717 million
However, states must spend some of their money on the program to receive federal funds. This is called the Maintenance of Effort (MOE) requirement.
Each state’s MOE requirement is based on its spending and whether it is required to spend 75% or 80% of that amount. A couple of examples:
- Florida’s MOE requirement is between $368.4 million and $392.9 million.
- Tennessee’s MOE requirement is between $82.8 million and $88.3 million.
If a state doesn’t spend its MOE requirement, then the federal government reduces its grant, dollar for dollar. So, if Tennessee’s TANF block grant was for $191 million but it only spent $50 million, then the federal government could reduce its award by $32.8 to $38.3 million.
A state will need to pay 75% percent of its 1994 expenditure if it meets the state federal work participation requirements (WPR). If it doesn’t, then it will need to pay 80%. Each state’s WPR is to have 50% of all work-eligible families and 90% of two-parent families engaged in work activities.
States have more control over how to spend money than other welfare programs, like SNAP. Besides cash aid, states can use funding for childcare, child welfare, education, and job training. Texas, for instance, spends only about 4% of funding on direct aid and spends the majority on pre-K/Head Start.
Types of TANF Assistance
Families enrolled in the TANF program receive electronic benefit transfer (EBT) cards, which work like debit cards. Or they may receive a direct deposit in their personal bank account.
Families can then use funds and EBT cards to pay for basic expenses, including housing, utilities, food, clothing, etc.
TANF enrollees cannot use funds for certain purchases, such as alcohol or tobacco, or at locations like:
- Liquor stores
- Casinos
- Adult entertainment venues
In addition to having restrictions on specific purchases, there is a federal 60-month lifetime limit on benefits. So, enrollees cannot receive cash assistance for more than five years collectively. However, some states set shorter lifetime limits.
This 60-month limit only applies to families with an adult. Meaning, child-only cases may receive TANF benefits for longer than the federal limit. Some examples of child-only cases:
- A grandchild is raised by their grandparents, so benefits are directly for supporting the child.
- A child is a U.S. citizen living with non-citizen parents who are ineligible for TANF.
- A child whose parent receives Supplemental Security Income due to a disability.
Families who are eligible for TANF may receive additional monetary benefits, such as housing vouchers, direct utility payments, subsidized child care, and transportation assistance (gas cards or bus passes).
Likewise, households eligible for TANF may also meet the requirements for other assistance programs like SNAP and Medicaid.
Besides cash assistance, TANF offers non-cash benefits to help families achieve self-sufficiency, like:
- Job search and readiness.
- On-the-job training and work experience.
- Vocational education (potentially up to 12 months for degrees/certificates).
- High school equivalency (GED) prep.
Some states offer a one-time crisis payment to help families avoid needing TANF benefits. Families may apply for this emergency cash assistance if parents lose their jobs, someone has a medical emergency, the household’s primary vehicle breaks down, the family is at risk of losing their home, etc. The amount of this one-time payment, as well as availability, varies by state.
Why Does TANF Exist?
TANF is a social safety net. While it may sound like a “handout,” its intention is to help those become independent and self-sufficient. It exists because vulnerable families need help when life becomes unpredictable.
- It keeps families together.
- It invests in the future workforce.
- It prevents long-term social costs.
- It provides economic stability.
Temporary situations can, unfortunately, lead to permanent problems. If a parent experiences job loss, a family member has a medical emergency, or a household is going through a rough patch, it can lead to kids being put into foster care or becoming homeless. TANF helps keep families intact and kids in stable homes.
Through cash and non-cash benefits, TANF gives parents the opportunity to work, which benefits society as a whole.
- Childcare subsidies help parents afford to rejoin the workforce.
- Transportation assistance allows adults to have a reliable way to get to jobs.
- Job prep teaches new skills so the unemployed can have better prospects.
It’s much cheaper to help a family through a six-month crisis than it is to deal with the long-term fallout of deep poverty. Studies show that when kids have their basic needs met, they do better in school and have better health outcomes. This means fewer costs down the road for public healthcare and emergency services.
When people lose jobs, they stop buying things, which hurts local businesses. TANF puts money directly back into the economy because families use those funds immediately for essentials. In short, it’s a proactive investment rather than a reactive expense.
