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TANF Cash Benefits Have Fallen by More Than 20 Percent in Most States and Continue to Erode

UPDATED
September 8, 2016
BY

Megan Stanley, Ife Floyd, and Misha Hill

Cash assistance benefits for the nation’s poorest families with children fell again in purchasing power this year and are now at least 20 percent below their 1996 levels in 35 states plus the District of Columbia, after adjusting for inflation.  For 99 percent of recipients nationally, the purchasing power of their benefits is below the level in 1996, when the welfare reform law created the Temporary Assistance for Needy Families (TANF) block grant.[1]  States should halt the erosion of TANF benefits and begin restoring the purchasing power lost over the past 20 years.States should halt the erosion of TANF benefits and begin restoring the purchasing power lost over the past 20 years.

Seven states plus Washington, D.C., raised TANF benefits between July 2015 (the start of fiscal year 2016 in most states) and July 2016; two others enacted legislation that raised benefit levels after July 2016.  The remaining 41 states did not adjust benefits, allowing inflation to continue eroding the benefits’ value.  (No state cut TANF benefits in nominal dollars in the past year.)

The erosion of TANF benefits since TANF’s creation in 1996 comes on top of even larger benefit declines over the preceding quarter-century.  Between 1970 and 1996, the value of cash assistance benefits for poor families with children fell by more than 40 percent in real terms in two-thirds of the states. 

As of July 1, 2016, every state’s TANF benefits for a family of three with no other cash income were below 50 percent of the poverty line, measured by the Department of Health and Human Services’ (HHS) 2016 poverty guidelines.  Most states’ benefits were below 30 percent of the poverty line.  In every state, benefits for a family of three with no other cash income were also below the Fair Market Rent — the Department of Housing and Urban Development’s (HUD) estimate of the rent and utility costs of modest housing in a local area — for a modest two-bedroom apartment; in 30 states and D.C., they covered less than half of the Fair Market Rent.  Additionally, less than a quarter of TANF families receive HUD housing assistance to help cover rent.  Even when benefits from SNAP (formerly food stamps) are added to TANF family grants, families with no other income remain below the poverty line in every state.

In addition, TANF provides a safety net to significantly fewer poor families than in the past:  in 2014, just 23 families received TANF benefits for every 100 poor families with children, down from 68 families receiving TANF for every 100 poor families in 1996.  Even more troubling, 12 states’ TANF programs reach only ten families or fewer for every 100 poor families.  TANF often is these families’ only source of support; without it they would have no cash income to meet basic needs.

This paper, an annual update of state TANF benefit levels as of July 1, covers changes in TANF benefits between July 1, 2015 and July 1, 2016.  The benefit levels cited here reflect the monthly benefits for a family of three with no other income as of July 1, 2016; they may exceed what many families actually receive because TANF benefits in seven states (California, Connecticut, Illinois, New York, Pennsylvania, Vermont, and Virginia) vary by geographic region.[2]  Unless noted otherwise, this paper reports the benefit level in the state’s most populous region.

Seven States and D.C. Have Raised TANF Benefits Since 2015

Seven states and the District of Columbia raised TANF benefit levels between July 1, 2015 and July 1, 2016 (see Table 1), increasing the median state benefit from $429 to $432.  Most of these increases were modest and reflect default periodic adjustments to benefit levels.

TABLE 1
States Raising TANF Benefits in Past Year (monthly benefit for family of three)
  July 2016 Benefits Increase Since July 2015
District of Columbia $441 $7
Montana $588 $2
Nebraska $436 $72
New Mexico $409 $29
South Carolina $282 $5
Texas $285 $4
Virginia $409 $20
Wyoming $657 $5

Note: TANF = Temporary Assistance for Needy Families Source: CBPP-compiled 2016 state benefits

  • The District of Columbia raised benefits by $7 to $441 in October 2015 as part of a cost of living adjustment (COLA) started in 2014.  Benefits will rise significantly in October 2016 to $508.[3]
  • Montana raised benefits by $2 to $588 in July 2016.  The state’s benefits are pegged to 35 percent of the federal poverty level.
  • Nebraska raised benefits by $72 to $436.  Legislation enacted in 2015 called for benefits to meet 55 percent of the state’s standard of need, which adjusts biannually.[4]
  • New Mexico partially restored benefit cuts made in 2011, raising benefits by $29 to $409 following 2015 legislation that mandated a 5 percent benefit increase.
  • South Carolina raised benefits by $5 to $282.  Benefits are based on a share of the state’s standard of need,[5] which adjusts periodically.
  • Texas raised benefits by $4 to $285 in October 2015.  The legislature generally adjusts benefit levels annually to maintain the maximum grant at 17 percent of the poverty line.  In October 2016, benefits will rise again, to $286.
  • Virginia raised its benefits twice in one year as a result of legislative action — by 2.5 percent in January 2016 and another 2.5 percent in July 2016 — for a total increase of $20, to $409.
  • Wyoming’s benefits have kept pace with inflation since the state implemented a COLA in 2009.  In July 2016, benefits rose by $5 to $657.

One other state adopted a benefit increase as part of its fiscal year 2017 budget: California, where benefits will rise by 1.4 percent in October 2016.

Benefits Leave Families Below Half of Poverty Line

TANF benefits leave family incomes below half of the poverty line in every state.[6]  (See Figure 1 and Appendix Table 2.)  In 1996, 16 states had benefit levels below 30 percent of the poverty line; today, 33 states and D.C. do.  In 16 of those states, benefit levels are below 20 percent of the poverty line — that is, below $336 a month for a family of three.  

Because TANF benefits have fallen substantially in value, they do much less to help families escape “deep poverty” (family incomes below half of the poverty line) than in 1996.  A poor family relying solely on TANF to provide the basics for its children — such as during a period of joblessness, illness, or disability — is further below the poverty line today than in 1996 in every state except Maryland, Texas (which keeps benefits pegged at 17 percent of the poverty line), and Wyoming.  (See Figure 2 and Appendix Tables 2 and 3.)  In many states, the decline has been dramatic:

  • Since 1996, benefits have fallen by 20 percent or more in 35 states plus D.C., after adjusting for inflation. 
  • Sixteen states had the same nominal benefit levels in July 2016 as in 1996, meaning that benefits have fallen in inflation-adjusted terms by more than 30 percent. 
  • In five states (Arizona, Hawaii, Idaho, Oklahoma, and Washington), TANF benefits are below their nominal 1996 levels.  After adjusting for inflation, benefits in Arizona and Hawaii are more than 40 percent below their 1996 levels.

 

Figure 1
Maximum TANF Benefits Leave Families Well Below Federal Poverty Line

 

The decline in TANF benefits since 1996 follows a quarter-century of major declines in the real value of benefits provided through TANF’s predecessor, Aid to Families with Dependent Children (AFDC).  Between 1970 and 1996, AFDC benefits fell by more than 20 percent in every state but one and by more than 40 percent in two-thirds of the states, after adjusting for inflation.[7]

 

Figure 2
TANF Benefits in Most States Have Declined in Inflation-Adjusted Terms Since 1996

 

Some families can combine TANF benefits with earned income to help meet basic needs; nearly all states have adopted “make work pay” policies under which TANF benefits phase out gradually as family earnings increase.  But such families still become ineligible for TANF cash assistance at very low income levels in nearly all states.  And, not all TANF families can supplement benefits with earnings; many families include parents who have significant disabilities or other barriers to work or cannot find jobs in the current labor market. 

Benefits Cover Only Fraction of Modest Housing Costs

Even as TANF benefits continue declining, the cost of housing in most areas is rising.  The monthly TANF benefit for a family of three is now below the estimated cost of a modest two-bedroom apartment and utilities[8] (based on HUD Fair Market Rents) in every state.  It is less than half of the Fair Market Rent in 30 states and D.C., compared with only seven states in 1996.  Between 1996 and 2016, the median Fair Market Rent nationally rose from $543 to $849, while the median TANF benefit only rose from $377 to $432.[9]  (These figures are in nominal dollars.)  

In fact, the share of housing costs that TANF benefits cover declined in all but two states between 1996 and 2016.  (See Figure 3.)

Most TANF families receive no housing subsidies — in fact, only about 22 percent TANF families live in a household that receives HUD housing assistance.[10]  Some states provide small additional funds to help families cover housing costs, but these rarely cover the large gap between TANF grants and local Fair Market Rents.

TANF families without housing assistance have high rates of housing instability — resulting in doubling up with friends or relatives, living in substandard conditions, frequent moves, eviction, and/or homelessness.[11]  Such instability can harm both adults and children associated with poor school performance, poor cognitive development, increased health risks, and mental health problems.[12]  

 

Figure 3
TANF Benefits Falling Further Behind Housing Costs

 

TANF Benefits Particularly Inadequate in High-Cost Housing Markets

TANF’s low benefits make it especially difficult for recipients to afford housing in high-cost housing markets, where the Fair Market Rent significantly exceeds the state average FMR.  Areas like New York City and San Francisco are known for their expensive housing markets, but other areas also have high housing costs:

  • In Miami, Florida, the FMR for a two-bedroom apartment is $1,250, or $212 above the state average. Florida’s TANF benefit for a family of three ($303) is less than 25 percent of Miami’s FMR.
  • In Philadelphia, Pennsylvania, the FMR for a two-bedroom apartment is $1,210, or $260 above the state average.  Though Philadelphia has the state’s highest housing costs, it’s not in the region of the state with the highest TANF benefit.  The benefit for a family of three ($403) is just 33 percent of Philadelphia’s FMR.*
  • In Fairfax County, Virginia, the FMR for a two-bedroom apartment is $1,623, or $456 above the state average — one of the biggest such gaps in the country.  Fairfax County is in the region of Virginia with the highest TANF benefit ($409 for a family of three), but it still only covers 25 percent of the county FMR.
  • In Seattle, Washington, the FMR for two-bedroom apartment is $1,523, or $320 above the state average.  The TANF benefit for a family of three ($521) covers just 34 percent of the area FMR.

 

 

* Other analysis in this report uses the highest regional benefit in the state, $421, to represent Pennsylvania.

 

SNAP Benefits Help, But Large Shortfall Remains

Unlike TANF, SNAP has provided a strong safety net for many unemployed families and individuals during the economic downturn and slow recovery.  TANF and SNAP benefits together do a better job of pulling families out of deep poverty than TANF alone.  About 85 percent of TANF households consistently receive SNAP benefits.[13]  In fiscal year 2014, the average monthly SNAP benefit for households with TANF income was $407.[14]  

Nevertheless, families receiving both SNAP and TANF benefits still fall below 75 percent of the poverty line in every state except Alaska and New York, as Figure 4 shows.  (Moreover, to simplify the comparison, the SNAP benefit levels used for this comparison overstate the SNAP benefit that many TANF families actually receive.[15])

 

Figure 5
Even TANF and SNAP Benefits Combined Leave Families Far Below Poverty Level

 

After Years of Disinvestment, It’s Time to Raise TANF Benefits

Twenty years after its creation, TANF is not fulfilling one of its core purposes: to provide a safety net for poor families.  States spend only a quarter of federal and state TANF funds on basic assistance, down from 70 percent in 1997.  In the years immediately after the 1996 welfare law, large caseload declines allowed states to channel freed-up funds from cash benefits to welfare reform efforts like child care and welfare-to-work programs.  But funding in those areas has been flat or declined for over a decade.  Instead, states over time redirected a substantial portion of their federal TANF and state maintenance-of-effort (MOE) funds to other purposes, in some cases to “supplant” (replace) existing state spending and thereby help close budget holes or to free up funds for purposes unrelated to low-income families or children. 

Nor did states invest the funds freed up by caseload declines to maintain their cash assistance programs.  This failure left the most disadvantaged families without much of a safety net.  As this paper shows, it is increasingly difficult for TANF recipients to meet basic needs, even when they also receive SNAP.  In particular, TANF families often find themselves in poor housing conditions with few resources to pay for even a modest apartment.  

TANF recipients have a limited time on benefits and must participate in work or work-preparation activities (unless they qualify for a state exemption).  During this time-limited, work-focused window, TANF benefits need to do a better job of enabling families to meet basic needs so they can focus on finding work and/or increasing their skills in order to become self-sufficient.  The destitution that accompanies today’s low TANF benefit levels frequently creates instability that can interfere with these goals and undermine welfare reform.

Many of the states that raised benefits in the past year did so through annual or periodic adjustments that generally occur by default or automatically.  Such approaches can be an effective strategy to protect TANF benefits from erosion due to inflation.  With state fiscal conditions improving, this is a good time for state policymakers to consider several steps to provide more adequate levels of basic assistance: 

  • First, they should reinvest TANF and MOE funds back into TANF to provide a stronger safety net for poor families. 
  • Second, as part of this reinvestment, states should restore the full value of benefits that has been lost in recent years and the additional cuts made during the recession, even if that requires several incremental increases over a period of years. 
  • Third, they should establish mechanisms to prevent benefits from eroding in the future.[16]  Adjusting TANF benefits yearly in step with inflation can maintain families’ purchasing power and help them meet basic needs — thereby improving the lives of parents and children receiving TANF while also helping local communities, as poor families quickly put that money into the local economy.
APPENDIX TABLE 1
Monthly TANF Benefit Levels (Single-Parent Family of Three)
  July 1996 July 2000 July 2005 July 2010 July 2014 July 2015 July 2016 Change 1996-2016 (inflation-adjusted dollars)
Alabama 164 164 215 215 215 215 215 -14.0%
Alaska 923 923 923 923 923 923 923 -34.4%
Arizona 347 347 347 278 278 278 278 -47.5%
Arkansas 204 204 204 204 204 204 204 -34.4%
California1 596 626 723 694 670 704 704 -22.5%
Colorado 356 356 356 462 462 462 462 -14.9%
Connecticut2 636 636 636 674 698 698 698 -28.0%
Delaware 338 338 338 416 338 338 338 -34.4%
D.C.3 415 379 379 428 428 434 441 -30.3%
Florida 303 303 303 303 303 303 303 -34.4%
Georgia 280 280 280 280 280 280 280 -34.4%
Hawaii4 712 570 570 610 610 610 610 -43.8%
Idaho 317 293 309 309 309 309 309 -36.1%
Illinois5 377 377 396 432 432 432 432 -24.9%
Indiana 288 288 288 288 288 288 288 -34.4%
Iowa 426 426 426 426 426 426 426 -34.4%
Kansas 429 429 429 429 429 429 429 -34.4%
Kentucky 262 262 262 262 262 262 262 -34.4%
Louisiana 190 190 240 240 240 240 240 -17.2%
Maine 418 461 485 485 485 485 485 -23.9%
Maryland6 373 417 482 574 624 636 636 11.8%
Massachusetts 565 565 618 618 618 618 618 -28.3%
Michigan 459 459 459 492 492 492 492 -29.7%
Minnesota 532 532 532 532 532 532 532 -34.4%
Mississippi 120 170 170 170 170 170 170 -7.1%
Missouri 292 292 292 292 292 292 292 -34.4%
Montana7 438 469 405 504 510 586 588 -12.0%
Nebraska8 364 364 364 364 364 364 436 -21.5%
Nevada 348 348 348 383 383 383 383 -27.8%
New Hampshire 550 575 625 675 675 675 675 -19.5%
New Jersey 424 424 424 424 424 424 424 -34.4%
New Mexico 389 439 389 447 380 380 409 -31.1%
New York9 577 577 691 753 7899 789 789 -10.3%
North Carolina 272 272 272 272 272 272 272 -34.4%
North Dakota10 431 457 477 477 477 486 486 -26.1%
Ohio11 341 373 373 434 465 473 473 -9.0%
Oklahoma 307 292 292 292 292 292 292 -37.6%
Oregon 460 460 460 485 506 506 506 -27.9%
Pennsylvania12 421 421 421 421 421 421 421 -34.4%
Rhode Island 554 554 554 554 554 554 554 -34.4%
South Carolina13 200 204 205 270 274 277 282 -7.5%
South Dakota 430 430 501 555 599 599 599 -8.7%
Tennessee 185 185 185 185 185 185 185 -34.4%
Texas14 188 201 223 260 277 281 285 -0.6%
Utah 416 451 474 498 498 498 498 -21.5%
Vermont15 597 622 640 640 640 640 640 -29.7%
Virginia16 354 354 389 389 389 389 409 -24.2%
Washington 546 546 546 562 478 521 521 -37.4%
West Virginia 253 328 340 340 340 340 340 -11.9%
Wisconsin17 517 673 673 673 653 653 653 -17.2%
Wyoming18 360 340 340 561 635 652 657 19.7%

1 California has two regional benefits.  The benefit listed here represents Region 1, which includes the most populous counties. The legislature has approved a 1.4 percent benefit increase, which will take effect in October 2016.

2 Connecticut usually raises TANF benefits each July 1 based on the Social Security Administration’s COLA for Social Security and Supplemental Security Income benefits. However, the state suspended its COLA for fiscal years 2016 and 2017 due to budget constraints. The benefit listed here is for Region A, which covers the state’s highest-cost area. While the maximum benefit a family could receive is $698, most families of three in Connecticut receive $576 a month.

3 D.C. will increase benefits significantly in the next three years to bring them in line with other high-cost regions; benefits will rise to $508 in October 2016.

4 Hawaii has a smaller benefit for families that must participate in work activities and a higher benefit for families that are exempt.  Benefits for a family of three are $610 and $763, respectively.

5 Illinois’ benefit levels vary by region. The benefit listed here is for most of the state.  Benefits are lower in southern Illinois than in the central part of the state.

6 Maryland adjusts its TANF benefits so that TANF and SNAP benefits combined equal at least 61 percent of the state’s “minimum living level.”

7 Montana adjusts benefits each year to keep them tied to 35 percent of the federal poverty line.

8 Nebraska adjusts benefits to keep them tied to 55 percent of the standard of need, which is adjusted biannually.

9 The benefit listed here is for New York City.  New York State’s benefit has several components, including a statewide monthly basic allowance (for recurring needs), a statewide home energy allowance, a statewide supplemental home energy allowance, and county-specific rental assistance, which varies from $259 to $447.

10 North Dakota’s benefit of $477 includes a $50 special needs portion for families with shelter costs.

11 Ohio raises TANF benefits on January 1 based on the Social Security Administration’s COLA for Social Security and Supplemental Security Income benefits.  Because there were no Social Security COLAs for 2009 or 2016, there were no TANF benefit increases for those years.

12 Pennsylvania’s benefits vary by county.  The benefit listed here is for the counties in Group 1 and is the highest in the state. However, it is not the most typical benefit.

13 In 2011, South Carolina reduced the share of the federal poverty level to which benefits were tied from about 18 percent to about 14 percent.  As of July 2016, the benefit level is set at 33.7 percent of the Need Standard (50 percent of the federal poverty level).

14 Texas adjusts benefits annually according to changes in the federal poverty level.  In October 2016, the state will raise benefits to $286.

15 Vermont has two regional benefits: a higher one for Chittenden County and a lower one for the rest of the state.  It also provides a housing supplement to many TANF recipients.  Figures shown here use the benefit level for outside Chittenden County and do not include the housing supplement. CBPP collected the information for benefit levels for 2010-2016; benefit levels for prior years are from the Urban Institute Welfare Rules Database.  (In the 2008 version of this paper, CBPP followed the approach used in Congressional Research Service reports, which used the higher levels that apply for Chittenden County and include a housing supplement.)

16 In Virginia, TANF benefits vary among three geographic areas; this report uses the benefit for the counties in Group III, the highest in the state.  Since July 2015, there have been two 2.5 percent benefit increases.

17 In Wisconsin, benefits have remained at $673 since 2011 for some categories of W-2 recipients (caretakers of newborns and pregnant women with at-risk pregnancies and no other children in their care).

18 Wyoming’s benefits adjust on July 1 and are tied to the state’s cost-of-living index for the previous year. TANF= Temporary Assistance for Needy Families

Source: TANF benefit levels for a single-parent family of three were compiled by CBPP from various sources and are current as of July 1, 2016. Benefit levels are adjusted for inflation using the CPI-U-RS.

 

APPENDIX TABLE 2
TANF Benefit Levels as Percentage of Federal Poverty Level
  1996 2016
Alabama 15.2% 12.8%
Alaska 68.3% 44.0%
Arizona 32.1% 16.5%
Arkansas 18.9% 12.1%
California 55.1% 41.9%
Colorado 32.9% 27.5%
Connecticut 58.8% 41.5%
Delaware 31.2% 20.1%
D.C. 38.4% 26.3%
Florida 28.0% 18.0%
Georgia 25.9% 16.7%
Hawaii 57.2% 31.6%
Idaho 29.3% 18.4%
Illinois 34.9% 25.7%
Indiana 26.6% 17.1%
Iowa 39.4% 25.4%
Kansas 39.7% 25.5%
Kentucky 24.2% 15.6%
Louisiana 17.6% 14.3%
Maine 38.6% 28.9%
Maryland 34.5% 37.9%
Massachusetts 52.2% 36.8%
Michigan 42.4% 29.3%
Minnesota 49.2% 31.7%
Mississippi 11.1% 10.1%
Missouri 27.0% 17.4%
Montana 40.5% 35.0%
Nebraska 33.7% 26.0%
Nevada 32.2% 22.8%
New Hampshire 50.8% 40.2%
New Jersey 39.2% 25.2%
New Mexico 36.0% 24.3%
New York 53.3% 47.0%
North Carolina 25.1% 16.2%
North Dakota 39.8% 28.9%
Ohio 31.5% 28.2%
Oklahoma 28.4% 17.4%
Oregon 42.5% 30.1%
Pennsylvania 38.9% 25.1%
Rhode Island 51.2% 33.0%
South Carolina 18.5% 16.8%
South Dakota 39.8% 35.7%
Tennessee 17.1% 11.0%
Texas 17.4% 17.0%
Utah 38.5% 29.6%
Vermont 58.5% 38.1%
Virginia 32.7% 24.3%
Washington 50.5% 31.0%
West Virginia 23.4% 20.2%
Wisconsin 47.8% 38.9%
Wyoming 33.3% 39.1%

TANF= Temporary Assistance for Needy Families

Source: 2016 Health and Human Services poverty guidelines for a family of three https://www.federalregister.gov/articles/2016/01/25/2016-01450/annual-update-of-the-hhs-poverty-guidelines#t-1 . TANF benefit levels for a single-parent family of three were compiled by CBPP from various sources and are current as of July 1, 2016

 

APPENDIX TABLE 3

Changes in Real (Inflation-Adjusted) TANF Benefits
Comparing 2016 Benefits with Benefits in 1996, 2000, 2005, and 2015

  1996-2016 2000-2016 2005-2016 2015-2016
Alabama -14.0% -6.0% -18.7% -1.3%
Alaska -34.4% -28.3% -18.7% -1.3%
Arizona -47.5% -42.6% -34.9% -1.3%
Arkansas -34.4% -28.3% -18.7% -1.3%
California -22.5% -19.4% -20.8% -1.3%
Colorado -14.9% -6.9% 5.5% -1.3%
Connecticut -28.0% -21.3% -10.8% -1.3%
Delaware -34.4% -28.3% -18.7% -1.3%
D.C. -30.3% -17.9% -6.9% 0.3%
Florida -34.4% -28.3% -18.7% -1.3%
Georgia -34.4% -28.3% -18.7% -1.3%
Hawaii -43.8% -23.3% -13.0% -1.3%
Idaho -36.1% -24.4% -18.7% -1.3%
Illinois -24.9% -17.8% -11.3% -1.3%
Indiana -34.4% -28.3% -18.7% -1.3%
Iowa -34.4% -28.3% -18.7% -1.3%
Kansas -34.4% -28.3% -18.7% -1.3%
Kentucky -34.4% -28.3% -18.7% -1.3%
Louisiana -17.2% -9.4% -18.7% -1.3%
Maine -23.9% -24.6% -18.7% -1.3%
Maryland 11.8% 9.4% 7.3% -1.3%
Massachusetts -28.3% -21.6% -18.7% -1.3%
Michigan -29.7% -23.1% -12.9% -1.3%
Minnesota -34.4% -28.3% -18.7% -1.3%
Mississippi -7.1% -28.3% -18.7% -1.3%
Missouri -34.4% -28.3% -18.7% -1.3%
Montana -12.0% -10.4% 17.6% -1.0%
Nebraska -21.5% -28.3% -18.7% 18.2%
Nevada -27.8% -21.1% -10.5% -1.3%
New Hampshire -19.5% -15.8% -12.2% -1.3%
New Jersey -34.4% -28.3% -18.7% -1.3%
New Mexico -31.1% -37.9% -20.6% 6.2%
New York -10.3% -1.9% -7.2% -1.3%
North Carolina -34.4% -28.3% -18.7% -1.3%
North Dakota -26.1% -23.7% -17.2% -1.3%
Ohio -9.0% -9.1% 3.1% -1.3%
Oklahoma -37.6% -28.3% -18.7% -1.3%
Oregon -27.9% -21.1% -10.6% -1.3%
Pennsylvania -34.4% -28.3% -18.7% -1.3%
Rhode Island -34.4% -28.3% -18.7% -1.3%
South Carolina -7.5% -2.6% 9.9% 0.5%
South Dakota -8.7% -0.1% -2.8% -1.3%
Tennessee -34.4% -28.3% -18.7% -1.3%
Texas -0.6% 0.2% 2.4% 0.1%
Utah -21.5% -20.8% -14.6% -1.3%
Vermont -29.7% -26.2% -18.7% -1.3%
Virginia -24.2% -21.2% -18.7% 3.8%
Washington -37.4% -31.6% -22.4% -1.3%
West Virginia -11.9% -25.7% -18.7% -1.3%
Wisconsin -17.2% -30.4% -21.1% -1.3%
Wyoming 19.7% 37.5% 55.9% -0.6%

TANF= Temporary Assistance for Needy Families

Source: Calculated from figures in Appendix Table 1 adjusted for inflation using CPI-U-RS.

 

APPENDIX TABLE 4
TANF Benefit Levels as Percentage of Fair Market Rents
  1996 2000 2016
Alabama 38.1% 36.6% 29.7%
Alaska 124.7% 117.0% 76.3%
Arizona 57.7% 55.8% 31.1%
Arkansas 46.4% 47.4% 29.6%
California 76.7% 79.1% 47.3%
Colorado 62.3% 55.5% 42.1%
Connecticut 84.6% 78.0% 54.3%
Delaware 55.5% 51.4% 30.0%
D.C. 53.3% 43.9% 27.2%
Florida 49.8% 47.8% 29.2%
Georgia 51.3% 48.4% 33.0%
Hawaii 73.2% 66.4% 34.3%
Idaho 61.6% 60.9% 41.8%
Illinois 57.6% 56.7% 41.6%
Indiana 58.8% 54.1% 37.3%
Iowa 87.5% 90.1% 58.4%
Kansas 88.1% 88.8% 54.9%
Kentucky 56.8% 58.2% 35.7%
Louisiana 41.9% 40.5% 29.2%
Maine 68.3% 81.9% 54.7%
Maryland 56.3% 59.7% 46.1%
Massachusetts 76.5% 66.2% 45.9%
Michigan 84.5% 77.9% 60.6%
Minnesota 91.1% 88.5% 57.6%
Mississippi 29.0% 40.0% 23.2%
Missouri 62.5% 62.3% 37.5%
Montana 98.9% 95.5% 77.5%
Nebraska 74.9% 73.2% 58.1%
Nevada 55.2% 50.0% 40.3%
New Hampshire 69.8% 78.1% 61.5%
New Jersey 54.2% 48.3% 30.7%
New Mexico 71.6% 84.1% 49.0%
New York 65.5% 69.2% 56.8%
North Carolina 52.9% 51.5% 34.2%
North Dakota 90.4% 97.9% 59.7%
Ohio 70.3% 69.7% 63.0%
Oklahoma 69.8% 65.2% 39.2%
Oregon 79.7% 75.8% 50.2%
Pennsylvania 69.2% 72.0% 44.3%
Rhode Island 86.2% 86.8% 55.9%
South Carolina 42.1% 41.1% 36.5%
South Dakota 83.7% 86.9% 83.7%
Tennessee 39.9% 37.1% 23.7%
Texas 34.7% 34.7% 31.1%
Utah 86.8% 74.2% 58.7%
Vermont 93.7% 100.5% 58.2%
Virginia 58.2% 56.5% 34.2%
Washington 86.9% 83.2% 43.3%
West Virginia 62.3% 77.7% 49.6%
Wisconsin 96.1% 122.1% 78.9%
Wyoming 74.2% 69.4% 80.9%

TANF= Temporary Assistance for Needy Families. Fair Market Rent= Department of Housing and Urban Development’s estimate of rent and utility costs for modest housing unit in local area.

Source: Out of Reach 1996 and Out of Reach 2016, National Low-income Housing Coalition, http://nlihc.org/sites/default/files/oor/OOR_2016.pdf (the 1996 report is not available online). NLIHC creates weighted statewide average Fair Market Rents for various-sized apartments based on the HUD Fair Market Rents for various sub-regions in the state. The numbers here are for a two-bedroom apartment. TANF benefit levels for single-parent families of three were compiled by CBPP from various state sources and are current as of July 1, 2016.

 

APPENDIX TABLE 5
2016 TANF and SNAP Benefit Levels as Percentage of Federal Poverty Level (FPL)
  TANF as Percent of FPL SNAP + TANF as Percent of FPL
Alabama 10.2% 43.36%
Alaska 54.9% 77.53%
Arizona 16.5% 47.13%
Arkansas 12.1% 42.71%
California 41.9% 71.26%
Colorado 27.5% 58.12%
Connecticut 41.5% 71.26%
Delaware 20.1% 50.71%
D.C. 26.3% 54.06%
Florida 18.0% 48.62%
Georgia 16.7% 47.25%
Hawaii 31.6% 71.40%
Idaho 18.4% 48.98%
Illinois 25.7% 55.49%
Indiana 17.1% 47.73%
Iowa 25.4% 55.97%
Kansas 25.5% 56.15%
Kentucky 15.6% 46.17%
Louisiana 14.3% 44.86%
Maine 28.9% 59.49%
Maryland 37.9% 65.47%
Massachusetts 36.8% 67.44%
Michigan 29.3% 59.91%
Minnesota 31.7% 55.85%
Mississippi 10.1% 40.68%
Missouri 17.4% 47.96%
Montana 35.0% 65.29%
Nebraska 26.0% 52.26%
Nevada 22.8% 53.40%
New Hampshire 40.2% 70.30%
New Jersey 25.2% 55.85%
New Mexico 24.3% 53.22%
New York 47.0% 75.02%
North Carolina 16.2% 46.77%
North Dakota 28.9% 59.55%
Ohio 28.2% 58.78%
Oklahoma 17.4% 47.96%
Oregon 30.1% 60.75%
Pennsylvania 25.1% 55.67%
Rhode Island 33.0% 63.61%
South Carolina 16.8% 47.07%
South Dakota 35.7% 66.30%
Tennessee 11.0% 41.57%
Texas 17.0% 47.31%
Utah 29.6% 58.89%
Vermont 38.1% 68.75%
Virginia 23.8% 53.76%
Washington 31.0% 61.64%
West Virginia 20.2% 50.83%
Wisconsin 38.9% 69.35%
Wyoming 39.1% 64.51%

TANF= Temporary Assistance for Needy Families.

Source: 2016 Health and Human Services poverty guidelines for a family of three at https://www.federalregister.gov/articles/2016/01/25/2016-01450/annual-update-of-the-hhs-poverty-guidelines#t-1. TANF benefit levels for a single-parent family of three were compiled by CBPP from various sources and are current as of July 1, 2016.  Estimated SNAP benefits were calculated by CBPP in accordance with USDA Food and Nutrition Service policies using the circumstances of a family of three with a full TANF grant (and no other income) and with median shelter costs for families with income below 80 percent of the federal poverty level. 

End Notes

[1] CBPP calculation of state TANF caseload data.

[2] See Appendix Table 1 for states with regional variation in TANF benefits.

[3] In October of 2016, 2017, and 2018, DC will increase benefits beyond their automatic COLA to bring them in line with other high-cost jurisdictions.

[4] The standard of need is the consolidation of basic necessities like food, clothing, home supplies, utilities, and shelter.

[5] South Carolina’s benefit level is indirectly tied to the federal poverty level.  The benefit is a share (currently 33.7 percent) of the state’s Need Standard, and the Need Standard is 50 percent of the federal poverty level.  The state can change the benefit level by adjusting the percentage of the Need Standard that TANF benefits meet or by adjusting the Need Standard’s percentage of the poverty level.

[6] The 2016 poverty guideline from the Department of Health and Human Services for a family of three is $1,680 per month in the 48 contiguous states and Washington, D.C.; Alaska and Hawaii have higher guidelines.  (See https://aspe.hhs.gov/poverty-guidelines)  CBPP uses HHS’ poverty guidelines in this analysis because they are a simplification of the poverty thresholds (the Census Bureau’s measure of poverty) and are used to determine financial eligibility for certain programs.

[7]1996 Green Book, House Ways and Means Committee, Table 8-15, http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=104_green_book&docid=f:wm014_08.pdf.

[8] Fair Market Rents, set by HUD, are gross rent estimates. They include the shelter rent plus the cost of all utilities, except telephones.

[9] CBPP analysis of HUD Fair Market Rents and state benefit levels.

[10] CBPP analysis of HUD administrative data and CBPP-compiled TANF caseload data.

[11] Matthew Desmond, “Eviction and the Reproduction of Urban Poverty,” American Journal of Sociology, 118(1), 2012.

[12] Will Fischer, “Research Shows Housing Vouchers Reduce Hardship and Provide Platform for Long-Term Gains Among Children,” Center on Budget and Policy Priorities, October 7, 2015, http://www.cbpp.org/research/housing/research-shows-housing-vouchers-reduce-hardship-and-provide-platform-for-long-term.

[13]Temporary Assistance for Needy Families (TANF) Eleventh Annual Report to Congress, Department of Health and Human Services, Office of Family Assistance, December 2014, http://www.acf.hhs.gov/sites/default/files/ofa/eleventh_report_to_congress.pdf.

[14]Characteristics of Supplemental Nutrition Assistance Program Households: Fiscal Year 2014, Department of Agriculture, Food and Nutrition Service, December 2015, http://www.fns.usda.gov/sites/default/files/ops/Characteristics2014.pdf.

[15] In calculating typical SNAP benefits, this analysis assumed that a family’s shelter costs are the median shelter costs for families of three receiving SNAP with incomes at or below 80 percent of the poverty line and that the household received no income besides the TANF benefit.  A family’s SNAP benefit is based on its income and deductions, most significantly the capped deduction for high shelter costs.  A family receives the maximum SNAP benefit if its net income (income minus deductions) is zero, usually because its income is low or its shelter costs are high relative to income.  In two-thirds of the states, the TANF benefit is so low that the estimated SNAP benefit used in Figure 4 is the maximum monthly benefit for a family of three ($511).  However, the SNAP benefit that an individual TANF family actually qualifies for, based on its particular circumstances, is usually lower than the maximum benefit because many TANF households either have other income or do not incur shelter expenses high enough to receive the maximum benefit.

[16] A statutory COLA is the best way to ensure that benefits keep pace with inflation.  TANF agencies will fare much better in their state budget process if a COLA is part of the baseline of a current-needs budget.  For example, Wyoming’s COLA is based on the Wyoming Cost of Living Index, the state’s inflation indicator, for the previous year. The COLA has made Wyoming one of two states whose benefits have risen since 1996 in inflation-adjusted terms. Ohio’s COLA follows the same approach used for Social Security and SSI benefits:  the state uses the Social Security Administration’s COLA percentage to raise TANF benefits at the start of every calendar year.