Using TANF Funds to Provide Cash to Families

The Temporary Assistance for Needy Families (TANF) annual block grant dedicates $16.5 billion in federal funds for states to support families with financial need, for instance through monthly cash assistance and through nonrecurrent short term benefits (NRSTs). While ongoing cash assistance comes with several restrictions, including work requirements, NRSTs have more flexibility, both in terms of who is eligible and what actions are required of recipients. Research has shown that cash payments can have strong positive outcomes for parents and children, including improved health, reduced child abuse and neglect, better education and work opportunities, and increased food, housing, and financial security. This Urban Institute summary provides an overview of key facts and considerations related to using TANF funds to support certain types of cash transfers to families with low incomes.