Understanding two categories of TANF spending: "Other" and "Authorized under prior law"

The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 brought about sweeping changes in the funding structure for the nation’s cash assistance program. Among these changes was the transformation of Aid to Families with Dependent Children (AFDC) to the Temporary Assistance for Needy Families (TANF) program, rooted in an effort to shift power from the federal government to states. To encourage autonomy and innovation, a mandate was included in the federal welfare reform legislation to provide TANF block grant funds to the states, allowing greater program flexibility in spending and other decisions. Now, more than a decade after the passage of the landmark legislation, little is known about how a noteworthy portion—roughly 15 percent—of these TANF funds is used. The purpose of this study, conducted by Mathematica Policy Research on behalf of the Office of Planning, Research, and Evaluation, Administration for Children and Families (ACF), is to understand how states are spending federal TANF funds reported as “Other” and “Authorized Under Prior Law” (AUPL) on the ACF-196 federal reporting form and, based on findings and feedback from states, to provide recommendations for improving federal reporting. Based on the definitions in the instructions for completing the ACF-196 form, we chose to focus on three categories: 1. Assistance AUPL. These expenditures were previously authorized under AFDC and cover expenses for services such as juvenile justice or state foster care. 2. Nonassistance AUPL. These expenditures were previously authorized under AFDC but do not fulfill the purposes of TANF and do not meet the federal definition of assistance. 3. Nonassistance “other” (line 6). These expenditures do not meet the definition of assistance and do not fit into any of the 13 prescribed categories under line 6. “Other” expenditures must fulfill at least one of the four purposes of TANF (provide assistance for needy families; promote job preparation, work, and marriage; prevent and reduce out-of-wedlock pregnancies; and encourage the formation and maintenance of two-parent families).(author abstract)