Last month, the Corporation for Enterprise Development (CFED) presented a federal policy proposal offering ten opportunities to reform the Temporary Assistance for Needy Families (TANF) program to better fulfill its purpose of moving families toward self-sufficiency. TANF helps families cover basic expenses like food and rent; however, they also need emergency savings and investments for long-term financial goals in order to break the cycle of poverty and become financially stable. To achieve those goals, the program needs to be adjusted.
Under TANF, the federal government provides a block grant to states, which means that Arkansas and Mississippi could use the funds to operate their own programs how they choose – as long as they align with the four goals established in the original 1996 federal law. Based on analysis of both states’ legislative environment and laws, several TANF reform recommendations could greatly improve the financial security of Arkansas and Mississippi families.
At Southern, we believe that helping people meet their basic needs should only be a short term tool to build their economic independence and security rather than a permanent support. One of the reforms proposed below is based on our experience in Arkansas which has enabled over 1,000 people to improve their economic security and independence by acquiring assets like education, small businesses, or home equity.
Check out the proposed changes and let your lawmaker know that you support TANF reforms and a strong financial future for your state’s families! If you need help identifying your state lawmaker, click here.
Arkansas
Mississippi
To learn more about our efforts to improve the economic security of rural communities, we invite you to contact Meredith Covington, Policy & Communications Manager, at meredith.covington@southernpartners.org.
Center on Budget and Policy Priorities. (2012). Available at http://www.cbpp.org/cms/?fa=view&id=936.
Arkansas
[i] Southern Bancorp Community Partners. (2013). Available at https://southernpartners.org/assets/PP_VoL36_FINAL_20130313.pdf.
[ii] CFED. (2013). Available at http://scorecard.assetsandopportunity.org/2014/measure/lifting-asset-limits-in-public-benefit-programs.
[iii] University of Kansas, School of Social Welfare, Assets and Education Initiative. (2013). Available at http://save4ed.com/wp-content/uploads/2013/07/Biannual-Report_Building-Expectations-071013.pdf.
[iv] Southern Bancorp Community Partners. (2014). Available at https://southernpartners.org/assets/PP_VoL41_20140428.pdf.
[v] The Shriver Brief. (2013). Available at http://www.theshriverbrief.org/2013/01/articles/asset-opportunity/childrens-savings-account-programs-gaining-traction/.
[vi] FDIC. (2011). Available at https://www.fdic.gov/householdsurvey/2012_unbankedreport.pdf.
[1] CFED. (2014). Available at http://cfed.org/assets/pdfs/Policy_Proposal_-_TANF.pdf.
[2] Center for Financial Security. (2013). Available at http://emergencysavings.files.wordpress.com/2014/05/tanf-bank-accounts-concept-paper-final.pdf.
Mississippi
[i] CFED. (2013). Available at http://scorecard.assetsandopportunity.org/2014/measure/state-support-for-individual-development-accounts.
[ii] Ibid.
[iii] University of Kansas, School of Social Welfare, Assets and Education Initiative. (2013). Available at http://save4ed.com/wp-content/uploads/2013/07/Biannual-Report_Building-Expectations-071013.pdf.
[iv] The Shriver Brief. (2013). Available at http://www.theshriverbrief.org/2013/01/articles/asset-opportunity/childrens-savings-account-programs-gaining-traction/.
[v] FDIC. (2011). Available at https://www.fdic.gov/householdsurvey/2012_unbankedreport.pdf.
[vi] CFED. (2014). Available at http://cfed.org/assets/pdfs/Policy_Proposal_-_TANF.pdf.
[vii] Center for Financial Security. (2013). Available at http://emergencysavings.files.wordpress.com/2014/05/tanf-bank-accounts-concept-paper-final.pdf.