The TANF block grant, with which states use to provide direct cash assistance, child care, work-related activities and supports, and other services to low-income families, was created in 1996 to replace Aid to Families with Dependent Children (AFDC).
Our research has found TANF reaches many fewer poor families than it used to, and TANF benefits have lost more than 20 percent of their value since 1996 in most states, making it very hard for families to meet basic needs. Our analyses have also shown that states’ spending has shifted away from providing cash assistance and toward other, often unrelated, state programs and services.
