Last Updated: 09/13/2023
The TANF Statute lays out the specifics of work requirements in Section 407 of the Social Security Act: Social Security Act §407 (ssa.gov). This report by CRS is especially helpful in laying out what is required of states vs. what is required of individuals: Temporary Assistance for Needy Families: Work Requirements (everycrsreport.com)
There are four requirements of states in the statute related to work: (1) meet the work participation rate; (2) engage parents in work (as defined by the state); (3) reduce benefits for families with a member who refuses to participate in work; and (4) conduct an employability assessment.
Here is a summary of each requirement:
Meet the work participation rate (WPR)
A state’s work participation rate measures the share of work-eligible recipients that participate in work activities as defined in federal law. Each year, states are required to meet a WPR for all families and a separate rate for two-parent families. Both are adjusted for the reduction in their caseload, after accounting for any eligibility changes. States often point to federal law as constraining their ability to operate work programs that would improve recipients’ long-term economic prospects. But state — not federal — rules determine work requirements for individual TANF recipients, including which recipients to exempt from work requirements.
Federal law is prescriptive about the hours and activities in which recipients must be engaged to be counted in the WPR calculation as well as procedures states must follow to document their participation. Most states define what is expected of individual recipients to align with what is required for a recipient to “count” toward the WPR, but federal law does not require them to do so. This distinction is important as it clarifies why states have considerable flexibility to operate work programs that would better affirm recipients’ dignity and help them achieve economic mobility even with the WPR in place. States also have non-punitive options for meeting the WPR such as taking advantage of a caseload reduction credit and providing additional assistance to working families. Because most states have a very low WPR target rate they have considerable flexibility to design and implement work programs that are based on evidence and reflect the goals and aspirations of the family. A state that fails to meet the rate can be subject to a fiscal penalty, up to 21 percent of its block grant, but states also have a number of options for avoiding a penalty, including demonstrating good cause for not meeting the WPR and entering into a corrective action plan. For most states, the threat of a fiscal penalty is largely nonexistent.
Engage parents in work (as defined by the state)
States are expected to engage recipients in work when they are deemed job ready or within 24 months of their participation in TANF, but it is up to the state to decide what constitutes being engaged in work. A state’s definition of what it means to be engaged in work does not have to follow the federal rules for activities and hours that determine whether a family is counted as engaged in work for purposes of the WPR calculation. For example, a state could define participating in mental health treatment or other work readiness activities as engaged in work; they also do not have to include a specific number of hours. States also do not have to include all families that are included in the WPR calculation. For example, a state can choose to exempt participants from engaging in work who are homeless or experiencing mental health issues or caring for a child with special needs or under a specific age, or living in an area with extremely high unemployment and extremely limited transportation options, to name a few. There is no penalty to the state if they do not meet this requirement.
Reduce benefits for families with a member who refuses to comply with work requirements
States are required to impose a financial penalty (i.e., a sanction) when a family member “refuses” to comply with work requirements as defined by the state without “good cause.” States determine the penalty amount and duration, including whether benefits are taken away from the family member who has not met the requirement, or the entire family, including the children in the family. They also determine when to impose the penalty and define what constitutes “good cause” for not meeting a work requirement. In recent years, because of the mounting evidence that adversity in childhood has significant long-term consequences for children’s growth and development, some states have shifted their policies to minimize the harm to children. For example, in 2020, Maryland passed legislation that designates 75 percent of the benefit for children and 25 percent for the adult members of the assistance unit. The adult portion of the grant is reduced by 30 percent if the parent does not comply with work requirements which is about $55 for a single parent household with two children. Vermont reduces a family’s grant by $150. The penalty remains in place until the family is in compliance with work requirements for two weeks. A state that does not have a sanction policy in place can face a penalty of between 1 and 5 percent of its block grant. This penalty has never been imposed on a state. You can find more on recent state policies to minimize the harm to families by taking away benefits at this link: Ending Full Family Sanctions
Conduct an employability assessment
States are expected to assess a recipient’s skills, work experience and employability within 90 days of participating in TANF. Some states use these assessments to develop an individualized service plan for recipients, but they are not required to do so. There is no penalty to the state if they do not meet this requirement.