This guide suggests ways that states may expend their federal Temporary Assistance for Needy Families (TANF) and State Maintenance-of-Effort (MOE) funds. The guide is organized into these seven sections: (1) "Introduction" provides background information, explaining the progress that has been made on welfare reform, what the funding situation is, the purposes of TANF, and the purpose of the guide; (2) "Considerations in Deciding Whether a Use of Funds Is Appropriate" lists factors that a state should consider when deciding what benefits and services to fund with federal or state dollars; (3) "Federal TANF Funds" addresses the basic criteria that apply to the expenditure of the federal block grant funds; (4) "State Maintenance-of-Effort (MOE) Funds" addresses the basic criteria for determining whether state expenditures would count as part of the minimum state financial contribution to the TANF program; (5) "Appropriate Uses of Funds" provides examples of benefits and services that might be paid for with federal TANF or state MOE funds, including support for work activities, child care, transportation, education and training, mental health/substance abuse counseling/treatment, aid to victims of domestic violence, developmental and learning disabilities assistance, enhancing or supplementing the family income or assets, child welfare, family formation and pregnancy prevention, and community development; (6) "Additional Considerations" provides more detailed information about the potential implications of providing "assistance" and other kinds of benefits under the TANF program, as well as information about what kinds of expenditures are allowable; and (7) "General Guidelines and References" identifies eight additional sources of information about the appropriate use of federal and state funds and a chart summarizing the specific program requirements that would apply under different state program designs. (KC)