An Introduction to TANF

Abstract

What Is TANF? Congress created the Temporary Assistance for Needy Families (TANF) block grant through the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as part of a federal effort to “end welfare as we know it.” TANF replaced Aid to Families with Dependent Children (AFDC), which had provided cash welfare to poor families with children since 1935. Under TANF, the federal government provides a block grant to the states, which use these funds to operate their own programs. In order to receive federal funds, states must also spend some of their own dollars on programs for needy families (they face severe fiscal penalties if they fail to do so). This state-spending requirement, known as the “maintenance of effort” (MOE) requirement, replaced the state match that AFDC had required. States