Federal TANF Policy

Issue Brief
Income Security

Thirty Years of Evidence Show TANF Policies Reduced Access to Cash Assistance, Deepened Poverty, and Did Not Promote Stable Employment

August 25, 2026 -
TANF’s block grant structure to states, federal policies that take away cash assistance if a parent doesn’t meet a harsh work requirement, and broad flexibility for states to use TANF funds for a range of purposes other than cash assistance have left many families experiencing poverty without a way to afford their basic needs.

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Policy Basics

President Clinton and Congress created Temporary Assistance for Needy Families (TANF) in 1996 in an effort to “end welfare as we know it.”

TANF reaches many fewer families than it used to, and states are increasingly using federal and state TANF dollars for programs and services that do not target the families with the lowest incomes. Also, TANF benefits have lost one-fifth of their value since 1996 in most states. We analyze how federal TANF policies affect states and explore ways that federal policymakers can improve the program to better serve families living below the poverty line.

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