Welfare Income Guidelines
Welfare no longer exists. The Work Opportunity Reconciliation Act of 1996 changed the social programs like Aid to Families with Dependent Children to Temporary Assistance for Needy Families or TANF. The federal government provides a block grant to each state to operate the program on the state level. Income guidelines vary by state and the federal government requires percentages of compliance.
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General Guidelines
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TANF guidelines require that families with an adult recipient can receive only five years or 60 months of benefits and these do not have to be consecutive months. States may use TANF funds to extend benefits, but only for up to 20 percent of the caseload. States must also use some of their own money to supplement TANF or risk penalties. These are maintenance of effort, or MOE, funds. Federal guidelines encourage use of TANF funds for families with children. Other uses are to encourage marriage and two-parent families and discourage nonmarital childbearing. Immigrants may not receive TANF funds until they have been in the country five years. A Social Security number is essential, and state residency is required.
Income Guidelines
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Each state enforces the guidelines set up by the federal government, and there is latitude in determining income limits. Family size, other income and other public assistance payments determine any monthly cash payment amount in most states. Cash assistance may require work activities like job search, job skills training or employment. States may disregard a portion of earnings in the calculations, and many disregard the first $90 earned every month. Florida, Nevada, Virginia, Wisconsin and New Mexico use the federal poverty guidelines schedules for calculations, as reflected in a 2009 Urban Institute report. Table I.E.4 of this report gives the income limits for eligibility for a family of three for each state program effective July 2009. The range is from $269 in Alabama to $1,430 in Nevada in the 48 contiguous states.
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Other Guidelines
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One objective of TANF that differs from the AFDC and earlier welfare programs is less cash and more programs to encourage employment in families who have individuals who can seek employment. A percentage of families receiving cash benefits under TANF must work as a result of federal guidelines and those with disabilities or over age 65 who cannot work have an alternative: Supplemental Security Income benefits are advantageous to the recipient in higher monthly payments and under federal regulation instead of state regulation.
Cash Assistance Guidelines
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Monthly cash assistance for TANF qualifiers is low. The average for all states in 2003 was $478 and the median shown in a Government Accounting Office report in 2006 was $396. The Urban Institute shows figures for each state for a family of three with no income, with few assets and a car. Asset limits are also low -- the recipient cannot have more than $1,000 in assets or resources in many states, and $2,000 seems to be the average. Most states have a vehicle exemption in calculating assets.
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References
- The Urban Institute: Welfare Rules Databook
- Social Security Online: The TANF/SSI Connection
- Government Accounting Office: Temporary Assistance for Needy Families February 2010
- Centers for Medicare and Medicaid Services: First Step: Temporary Assistance for Needy Families (TANF)
- The Urban Institute: TANF Income Eligibility Thresholds
- U.S. Department of Health and Human Services: Administration for Children and Families: American Recovery and Reinvestment Act
