0970-AC97 202310 The Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions 0970 Administration for Children and Families ACF 0900 Department of Health and Human Services HHS Strengthening Temporary Assistance for Needy Families (TANF) as a Safety Net Program

This rule would improve the effectiveness and integrity of the Temporary Assistance for Needy Families (TANF) program as a safety net program by clarifying allowable uses of TANF funds and reducing administrative burden. The rule takes into account concerns from Members of Congress from both parties who are focused on ensuring TANF funds are serving their intended purpose, and advances the Biden-Harris Administration’s priority for economic growth through investment in American families. The rule aims to ensure TANF funds are used in accordance with the statute, focusing on services that support families to meet their basic needs, get access to opportunities in the job market, and remain together.

]]> Section 3(f)(1) Significant Previously Published in The Unified Agenda Proposed Rule Stage Yes No 45 CFR 260 42 U.S.C. 609 Yes

In fiscal year (FY) 2020, combined federal TANF and state maintenance-of-effort (MOE) expenditures and transfers totaled $31.6 billion. Of that amount only 22 percent was spent on basic assistance, compared to 71 percent in FY 1997. As a result, TANF currently serves less than 25 percent of eligible families across the country, as compared to 1997 when TANF served almost 70 percent of eligible families. The rule aims to address these shortcomings and would align with the Administration’s efforts to increase opportunities for economic mobility for low-income families.  The NPRM may consider changes around use of funds, eligible families, state MOE spending, and work flexibilities.

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The proposed regulations will relate to allowable spending, eligible work activities and penalties, and administrative simplification. The NPRM would be issued under the Secretary’s authority to issue regulations where Congress has charged the Department with enforcing penalties, 42 U.S.C. 609.

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In the absence of these regulatory changes, states will not experience any relief in their administrative burden to operate the TANF program and these changes will improve program integrity and access to services. 

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This NPRM imposes no costs on the Federal government nor does it change overall funding amounts for States, territories, and tribes, as TANF is a fixed block grant.  We anticipate a benefit in the transfer of funding toward critical supports to families experiencing economic hardships.

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While we expect more low-income families to receive TANF benefits and receive more effective work-related services, this action may result in states having to increase their own spending to fund activities previously funded by federal TANF dollars or previously counted as state MOE spending.

]]> NPRM 10/02/2023 88 FR 67697 NPRM Comment Period End 12/01/2023 Final Action 04/00/2024 No No None No No No No Deborah List Associate Deputy Director 0970 Administration for Children and Families ACF 202 401-5488 deborah.list@acf.hhs.gov Office of Family Assistance, 330 C Street SW, Washington DC 20201