ERIC Number: ED463041
Record Type: Non-Journal
Publication Date: 2001-Sep
Reference Count: N/A
The Impact of TANF Funding on State Child Care Subsidy Programs. Policy Brief.
Schumacher, Rachel; Greenberg, Mark; Duffy, Janellen
The 1996 welfare law created two block grants, Temporary Assistance for Needy Families (TANF) and the Child Care and Development Fund (CCDF). Since then, employment has increased among low-income mothers, and the number of families receiving welfare has declined. Currently, each state receives a block grant of TANF funds, which they are free to allocate to other needs. The single biggest redirection of TANF funds in 2000 was to child care. The principal source of federal funding for low-income child assistance has been CCDF, but nationally the federal funds redirected from TANF exceeded federal CCDF funds as a source of child care funding. States have become increasingly dependent on TANF as a means to address child care needs. This report discusses the impact of TANF funding on state child care subsidy programs based on a survey of all state TANF agencies about transfer and spending of TANF funds for child care; CCDF administrators were also interviewed in states that available funds showed had at least 20 percent of TANF funds transferred to CCDF. The report addresses the regulations governing TANF allocations and demonstrates trends over time of states transferring TANF funds to CCDF. Findings of key child care policy expansions and improvements made possible by TANF transfers are summarized, as are characteristics of states where TANF funds were directly spent on child care, and the themes of state administrators' concerns regarding TANF fund allocations. The report concludes with recommendations for increased CCDF funding without restricting access to TANF funds for child care. Two appendices summarize data gathered in the study on "the use of TANF for child care in FFY 1999 and 2000: transfers to CCDF and direct spending on child care" and state by state summaries of the "impact and use of transferred TANF funds in high-transfer states through FFY 2000." (Contains 14 endnotes.) (JPB)
Descriptors: Budgeting, Day Care, Early Childhood Education, Federal Aid, Federal Government, Federal Legislation, Grants, Low Income Groups, Revenue Sharing, State Federal Aid, Welfare Services
Center for Law and Social Policy, 1015 15th Street, NW, Suite 400, Washington, DC 20005. Tel: 202-906-8000; Fax: 202-842-2885; Web site: http://www.clasp.org.
Publication Type: Reports - Descriptive
Education Level: N/A
Sponsor: Ford Foundation, New York, NY.; John D. and Catherine T. MacArthur Foundation, Chicago, IL.; Mott (C.S.) Foundation, Flint, MI.; Open Society Inst., New York, NY.; Foundation for Child Development, New York, NY.; Public Welfare Foundation, Washington, DC.; David and Lucile Packard Foundation, Los Altos, CA.
Authoring Institution: Center for Law and Social Policy, Washington, DC.
Identifiers - Laws, Policies, & Programs: Child Care and Development Block Grants; Temporary Assistance for Needy Families