This blog is the second post in a series that will detail how lawmakers have weakened Temporary Assistance for Needy Families (TANF) over the past 20 years, explain why TANF is a cautionary tale rather than a model for other work and income support programs, and map out a better way forward.
TANF does little today to help families make ends meet or to connect them to work to reduce their need for supports—thus violating the purported intention of the 1996 welfare law to move people off welfare to work. Known as WorkFirst in North Carolina, TANF is a cautionary tale, not a model, for lifting families out of poverty. Below are the top three reasons why.
1. WorkFirst provides a safety net for fewer families who are poor, despite increased need. Just 8 out of 100 North Carolina families with kids living below the federal poverty line benefit from the program today, as opposed to 74 out of 100 when the law was first enacted (known as the TANF-to-poverty ratio; see the chart below). There are only seven states with a lower ratio. In other words, cash assistance through TANF is simply inaccessible in North Carolina.
In fact, WorkFirst failed to cushion families against deep spikes in unemployment during the Great Recession and its aftermath. The TANF-to-poverty ratio either stayed flat or fell every year since the 2007 downturn. Since 2006-07, nearly 50,000 more families with children live in poverty, but caseloads dropped by more than 36 percent. One would expect, at minimum, for the cash assistance program to respond modestly to meet the surge in poverty, but WorkFirst failed completely to react and left a lot of needy families without the basics. Read more