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In 1996, however, when TANF was established, assurances were given for a TANF Contingency Fund during hard times. That was then. This is now after resources were exhausted in December 2010, and 2011 allocations are too meager to matter. The 2009 Recovery Act included TANF Emergency Fund aid, not renewed after September 2010.
Moreover, Congress "level-funded" TANF from inception, providing no adjustments for inflation or other factors, including extra help during hard times.
As a result, budget-strapped states have cut back severely, reducing matching funds and using federal grants for other purposes.
Nationwide in July 2010, TANF benefits for a family of three averaged less than half the poverty line, and below 30% in over half the states. The median amount paid was $429, 28% of poverty wages. Compared to 1996, TANF benefits declined by over 20% in inflation adjusted dollars.
In 2011, they dropped more given skyrocketing food, energy and other costs, as well as several states implementing more cuts. Effective February 1, Washington reduced benefits by 15% a month, from $562 to $478. South Carolina cut them 20%, from $270 to $216. New Mexico slashed 15%, from $447 to $380.
Effective July 1, California dropped 8%, from $694 to $638 and will impose additional cuts up to 15% for "child-only" cases, those with "no adult in the assistance unit" that, up to now, got aid for 60 months or longer.
Effective April 1, The District of Columbia slashed 20% for families getting aid for 60 months or longer, from $428 to $342. In addition, Mayor Vincent Gray proposed more cuts, up to 40% (including the April one) by October as well as total elimination of benefits by 2013.
Watch for states across the country to propose similar measures as Washington heads for ending social benefits altogether, what Democrats and Republicans plan but won't explain.
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