This report outlines the TANF-related provisions in the recently passed and signed debt ceiling agreement. These provisions are:
Recalibration of the Caseload Reduction Credit (the agreement makes this effective in October 2025).
While the caseload reduction credit is currently calculated based on a comparison of the current number of families receiving TANF cash assistance with the caseload in 2005, the debt ceiling agreement changes the comparison year from 2005 to 2015.
Limitation on Counting Families Receiving Small Cash Payments Toward the Work Participation Rate (effective October 1, 2025).
Under the agreement, states can count working families as meeting the TANF work requirement only if they receive a monthly cash grant of $35 or more.
Data Reporting on Work Outcomes (effective October 1, 2024).
The legislation includes new data reporting requirements that are aligned with outcome measures under the main job training programs (known as Workforce Innovation and Opportunity Act (WIOA) programs).
New Work Outcomes Pilot (effective October 1, 2024).
The agreement includes a pilot program that will allow up to five states to test a new approach to improving outcomes for families receiving income assistance through TANF (and related state-funded programs).