Understanding the Temporary Assistance for Needy Families caseloads after passage of the Deficit Reduction Act of 2005

In this paper, we examine how policy and structural changes states made in response to the DRA may influence the level and composition of the TANF caseload. This paper grew out of a 50-state survey Mathematica Policy Research conducted on diversion programs which revealed that states were providing cash assistance to some families with children outside of their TANF programs in order to meet the higher effective work participation rates established by the DRA (Rosenberg et al. 2008). This paper also draws on field visits Mathematica conducted to state and local welfare offices to study innovative strategies states were employing to increase the number of recipients participating in work activities (Pavetti et al. 2008). All analyses of caseload data rely on the official TANF caseload numbers published by the Administration for Children and Families. The audience for this paper includes researchers, policy makers, and program administrators who use TANF caseload data to assess the functioning of the program. The primary aim of the paper is to provide readers with background information that can improve their ability to interpret changes in the TANF caseload (or more broadly in the receipt of public cash assistance), especially during these challenging economic times and as policy makers consider the reauthorization of the program.

We start with a description of state cash assistance caseloads for families with children prior to the DRA, which provides important contextual information for understanding state responses to the DRA and their potential influence on TANF caseloads. In the second section, we describe the DRA provisions directly related to TANF. In the third section, we describe policy and structural changes made in response to the DRA and discuss their influence on state TANF caseloads. The final section offers our conclusions. (author abstract)