How are states spending their federal #TANF and state MOE funds? Our annual update on TANF spending, the third of our annual papers, is available. https://www.cbpp.org/research/family-income-support/to-lessen-hardship-states-should-invest-more-tanf-dollars-in-basic
In fiscal year 2019, states spent just 21% of their total #TANF spending on providing basic assistance to families with the lowest incomes. In 14 states, spending on basic assistance was less than 10%. Spending on basic assistance has decreased markedly since TANF's first year.
Spending on #TANF work-related activities and work supports & supportive services were similarly low (13% of total spending). Eight states spent less than 5% on these two categories combined. States spent 16% of their total #TANF funds on child care.
States spent 10% of their total #TANF funds on program management and 9% on refundable tax credits for working families. The rest went to areas such as child welfare and pre-k/head start.
44 states and DC have unspent #TANF reserves. 10 states have reserves larger than their annual block grants, some (like #Tennessee and #Hawaii) much larger. These reserve funds can and should be used to provide assistance to families experiencing extreme hardship due to #COVID