Immigrant Policy Project

February, 2001

Opportunities Under TANF
for Serving Refugee and Immigrant Families:
A Checklist for State and Local Policymakers

The Temporary Assistance for Needy Families (TANF) program provides states with significant flexibility to help low-income families obtain and maintain employment and to improve their economic circumstances. A population that is facing significant hurdles in the new TANF program are legal immigrant and refugee families, due to language and cultural barriers and the new federal bars and limits on assistance. In the fall of 2000, NCSL's Immigrant Policy Project conducted an informal survey to identify state initiatives in providing or adapting TANF-funded services and programs for refugees, immigrants and/or non-English speaking clients.

TANF Background

States must use the TANF block grant and state Maintenance of Effort (MOE) funds to meet one of the four purposes of the TANF program: 1) to provide assistance to needy families; 2) to end dependence of needy parents by promoting job preparation, work and marriage; 3) to prevent and reduce out-of-wedlock pregnancies; and 4) to encourage the formation and maintenance of two-parent families. States must set an eligibility level for purposes 1) and 2), though eligibility may vary by each state program created. The 1996 law also required each state to maintain state funding at 80% of the level the state was spending on AFDC in FY 1994 or 75% if they meet work participation requirements. The federal law limits families to 60 months of assistance, employment within 24 months (though states define work), and work participation rates (for the year 2000, 40% of families in assistance must work 30 hours per week.)

The 1996 federal welfare law established a five year bar on TANF for legal immigrants who entered the United States after August 22, 1996 (the date of enactment of the Personal Responsibility and Work Opportunity Act Reconciliation Act of 1996, P.L. 104-193). After the five-year bar, these immigrants are subject to deeming until they become citizens or can demonstrate 40 qualifying quarters of work. The law created exemptions for refugees, military personnel, and certain victims of domestic violence.

1. Federal TANF block grant

The least flexible funds are federal TANF funds defined as "assistance": payments for ongoing basic needs such as cash, food, utilities and housing and for child care, transportation, and supports for families that are not employed. Federal requirements such as work participation rate, the five-year time limit, child support assignment and data collection apply. Federal TANF funds may not be used for Medicaid or for medical services, though "nonmedical" services such as counseling for domestic violence victims may be provided.

More flexible funds are federal TANF funds that are "not assistance": education; training; short-term, nonrecurring cash or housing assistance (less than 4 months); work subsidies; child care, transportation, and support services for families that are employed; refundable Earned Income Tax Credit (EITC); Individual Development Accounts (IDAs); counseling, case management, child care information and referral; and, job retention and advancement.

2. State MOE

States may:

• commingle MOE with federal funds, which are subject to the federal TANF time limits, work requirements, and spending restrictions; or,
• segregate the MOE from federal funds within the TANF program, which are subject to fewer federal TANF requirements (e.g., more flexibility with time limits); or,
• establish separate state MOE programs outside of TANF (the most flexible option - these funds are not subject to federal TANF time limits or work participation requirements).

State MOE funds must be spent on TANF-eligible families (whether or not the families are actually receiving TANF). Eligible families include those who are financially eligible for the service or benefit and have a minor child living with an adult relative in the home. States may use MOE funds to provide TANF services to legal immigrants who are eligible for TANF but for the federal bar during the immigrant's first five years in the United States.

MOE funds may be used for cash assistance, child care, education to increase self-sufficiency, job training and work. MOE can also include spending in community colleges, departments of labor, and health (but not Medicaid). MOE can not include spending on K-12 education, but can be used for basic, vocational, and post-secondary education.

For programs that existed in 1995, states can only count funds spent in excess of the amount spent in 1995 (known as the "new spending test" for MOE). If the program is new, all spending counts toward the MOE.

3. Refugee Resettlement Program (funded by the federal Office of Refugee Resettlement in HHS).

The federally-funded refugee resettlement program provides Refugee Cash Assistance (RCA) and Refugee Medical Assistance (RMA) for refugees that do not meet the eligibility requirements of TANF or Medicaid. These services are available only for the refugee's first eight months in the United States.

State Responses

As a part of TANF, childcare, transportation and housing are available for all eligible applicants. California also offers a supplemental SSI program (SSP) which is available to all federally eligible individuals (aged, blind and disabled). California's SSP program also covers legal immigrants who aren't eligible for federal SSI.

Refugees are eligible for the CalWorks (TANF) program and MediCal, the state health care program. Immigrants ineligible for TANF can also access MediCal. Certain EITC programs and IDAs are available locally, but no statewide programs exist.

California's Refugee Program requires linguistically and culturally appropriate services for clients. In lieu of a statewide standard, counties translate benefit applications to meet local needs. In addition, the state hires multi-lingual staff to serve as translators for applicants.

Colorado has both English and Spanish application forms statewide, and counties provide additional languages depending upon their residents' specific needs. Translators, mostly bilingual staff and volunteers, are available to assist limited English proficient (LEP) applicants.

In addition to federal TANF programs, immigrants and refugees in Colorado can access a small 100% state-funded emergency immigrant assistance fund. This assistance includes emergency medical assistance, which is available for all Colorado residents, and short-term emergency cash assistance for immigrants who are ineligible for TANF because of date of entry. This program began in 1997 with state appropriations at $1 million; in subsequent years funding has been reduced to $250,000 because of low participation.. Contributing factors to the lack of participation include federal restoration of some benefits in 1998, fears among the immigrant population of public charge, traditionally low rates of public benefit use by immigrants in Colorado and the strong economy.

Georgia is using traditional federal TANF at this time but is considering creating two new positions at the state level with TANF MOE money. Part of the responsibility of these positions would be to meet the federal requirements regarding Limited English Proficient individuals. Georgia already has applications translated into Spanish, and is exploring additional translator services.

Illinois uses TANF to fund intensive English language training courses. Since students are subject to job placement during their training, classes operate on a flexible schedule (open-entry, open-exit) to accommodate employment. Childcare, transportation and employment support services are available to immigrants and refugees enrolled in TANF. Immigrants are also eligible for the EITC and for IDAs.

An innovative TANF-funded program in Illinois targets computer literacy for immigrants and refugees. The state operates a successful computer-training program through its Refugee Computer Lab.

Illinois offers Limited-English Proficient (LEP) clients several outreach and translation programs outside of TANF funding. Within the Department of Human Services, the Bureau of Latino Relations operates a telephone language bank, accessing when possible the 40 languages spoken by the Department's 1200 bilingual staff. In addition, 29 community-based organizations provide outreach to the immigrant community by explaining benefits available and offering interpreter services in 18 languages. The state has translated major program descriptions into eight languages in addition to Spanish: Arabic, Bosnian, Chinese, Hindi, Korean, Polish, Russian, and Vietnamese. Outreach services also include medical benefits. The Department of Public Aid has an outreach program for SCHIP and they provide prenatal, delivery and postnatal care regardless of the mother's citizenship status.

There is not an ethnic breakdown of TANF recipients but several reports have been prepared on noncitizens' access to benefits. The state is currently conducting a study of TANF applicants; early results indicate that immigrants are more likely than citizens to leave TANF for employment.

Kansas is on the verge of several changes in their programs for non-English-proficient clients.

The Kansas Office of Refugee Resettlement (ORR) is in the process of hiring a Special Projects Coordinator to explore expanded language services. The state currently has application forms in Spanish and is looking at additional translations to meet the increasing need for services in the Vietnamese and Russian.

Immigrants and refugees in Kansas have access to Medicaid, along with TANF. While EITC is not available, these populations can receive a state tax exemption for low-income households, and the state is in the early development stages of establishing IDAs. Those working with refugee groups have found some reluctance towards IDAs due mostly to unfamiliarity with the program and fears associated with disclosing personal information to the government.

Eligibility for work supports, including transportation, is being extended to 12 months after an individual leaves TANF. In Kansas, childcare is available in association with TANF (funded through the Child Care and Development Block Grant.)

Kansas has identified the fear of the INS as a contributing factor to eligible immigrants not accessing assistance. To counteract this effect, the state has begun to vigorously market the State Children's Health Improvement Program (CHIP) to parents of eligible children in immigrant populations. Efforts include holding informational meetings within the target populations, canvassing the communities, and clarifying and reinforcing policies to field staff.

There are no current detailed demographic data on public service recipients. To what degree the refugees are using TANF has not been determined, although studies by the state universities on welfare clients are underway.

Maryland contracts with Maximus, a private organization, for refugee and immigrant language training. The state also offers community development projects and homeownership training for refugees and immigrants.

Maryland is attempting to overcome cultural issues associated with accessing TANF and other benefits. Refugee clients seeking TANF are referred to Child Support Services if the spouse of the person applying for assistance is not located. Because the refugee spouse is often not in the country, many refugees are unable to verify that their spouse is living or to identify their spouse's location. The state refugee services office has discovered that many refugees are thus found noncompliant with Child Support Services, making them ineligible for TANF. Obstacles to compliance include the staff's lack of sensitivity to the refugees' cultural issues and circumstances. Interpreters are most likely trained in languages of earlier immigrants, and not in languages of newly arriving immigrants. In many locations, no interpreters are available for LEP applicants.

Nebraska chose to provide TANF benefits to eligible immigrants regardless of their date of entry. The Aid to Dependent Children program provides benefits to eligible legal immigrants and refugees using the TANF block grant, and to legal immigrants arriving after August 22, 1996 using state MOE. After the five-year period, the state will deem 100% of the sponsor's income and resources in determining eligibility for TANF. The state places a priority on outreach to immigrant and refugee populations. Outreach efforts include designated staff time for services assisting immigrants and refugees in the citizenship process. Application forms for the Employment First program (Nebraska's program for education, employment, and training) have been streamlined and translated into Spanish, Bosnian and Vietnamese.

The New York State Refugee Resettlement Assistance Program uses both TANF and non-TANF funds to provide enhanced services to refugees, asylees, entrants and certain Asian immigrants to help them attain economic self-sufficiency. Enhanced services, contracted with local voluntary organizations, include post-employment services, mental health, residency assistance, case management, older refugee services, etc. The local voluntary organizations were evaluated on their performance in areas such as placement/job readiness, ESL, and their varied enhanced services goals.

Oregon operates a "seamless program" in which all refugees, whether eligible for TANF or RCA, are provided services through the traditional refugee service program. The central administrative office determines specific program eligibility (TANF or RCA) and sets up the case for payment through that program.

Oregon translates all application forms into eight languages (Spanish, Russian, Vietnamese, Rumanian, Mien, Hmong, Cambodian and Laotian), and the refugee program uses translations in many more languages. When at least 25 clients speak a particular language, the state translates forms and hires an appropriate bilingual staff. Due to changes in population, Rumanian, Mien and Hmong translations may be discontinued (although interpretation will be maintained). The office is also planning to add Korean, Chinese and Bosnian language services.

The Oregon Health Plan (OHP) extends medical services to low-income people, including refugees and legal immigrants. This program also includes emergency medical services for undocumented immigrants.

Childcare, transportation, and housing assistance are available to all TANF-eligible clients. Approximately 75% of refugee clients go to work within their first eight months of receiving services. TANF eligible refugees who are unemployed or underemployed (generally those with large families making low wages) will continue to be eligible for TANF after the eight months.

TANF is available to eligible refugees and immigrants including English as a Second Language training. All services at the Texas Works Office are 100% federally funded through TANF. During the application process, volunteer organizations often provide translation services to refugees. The Texas Works Office is currently reviewing the application process and language is an issue under consideration. The Houston area refugee consortium has entered into a contractual agreement with the local Workforce Center to provide TANF services for refugees and immigrants.

Immigrant children within the five-year bar period are eligible for SCHIP through a state sponsored program. The Office of Immigration and Refugee Assistance worked closely with the Health and Human Services Commission to assist with translation of outreach materials for refugees and immigrants. Refugee agencies in the Houston and San Antonio area subcontract with the SCHIP grantees to provide services to immigrants and refugees. There is an Individual Development Account program in the Houston area that has been in place for two years. In addition, the Houston area Workforce Center contracts with a refugee and immigrant language school to provide instruction in English as a Second Language.

A special state program provides English language training and employment services to participants in WorkFirst, Washington's TANF program. The WorkFirst Limited English Proficiency (LEP) Pathway allows participants to combine WorkFirst services with up to 20 hours per week of English as a Second Language (ESL) instruction. Students in the LEP program may participate for up to 12 months. Early employment is emphasized and until employed, participants are enrolled in the LEP Pathway full-time. Support services offered to participants include assistance in job search, orientation to the work environment, employment training in a bilingual setting and job-retention supports, such as additional language training and skills training. In February 2000, 81.2% of 6,733 LEP clients receiving TANF were actively employed, in job search or job-preparatory activities. Washington also has a system of caseworker incentives, awarding cash bonuses to caseworkers that help clients find high-wage jobs with benefits.

Policy Options for States

The U.S. Department of Health and Human Services, in their guide on Helping Families Achieve Self-Sufficiency, supported the progress states have made in moving families from welfare to work and suggested additional ways states could creatively use their TANF and MOE funds, including crafting services for families with special needs or multiple employment barriers.

Since these funds are considerably more flexible than previous entitlement programs, states should begin with the assumption that they may use TANF in innovative ways. The following list is representative of the potential uses of TANF and MOE to serve immigrant and refugee populations:

• Offering employment supports such as job search and placement assistance, post-employment follow-up services to ensure job retention, transportation, child care and job skills training
• Providing work experience and case management to individuals with employment barriers, such as little or no work history or limited English-speaking ability
• Initiating public awareness campaigns to inform immigrant and refugee populations of their eligibility for EITC, food stamps, SCHIP and other services
• Paying refugee services providers for linguistically and/or culturally appropriate services to help refugee TANF recipients in work activities
• Sharing with employers the cost of on-site ESL or literacy classes
• Providing skills training for new, unskilled and semi-skilled workers to improve chances of job retention and advancement
• Using federal TANF for nonmedical services such as substance abuse screening, counseling by a nonmedical professional; residential care
• Using state MOE for medical services not paid by Medicaid; can include medication, health insurance, and medical treatment
• Using state MOE to provide medical coverage for families that are ineligible for transitional Medicaid or for adults whose children are served by Medicaid or CHIP
• Providing stipends to parents with limited English proficiency who combine education and training with work
• Funding a micro-enterprise program
• Funding community-based organizations that employ TANF clients by covering the appropriate share of planning, development and implementation costs
• Using funds to purchase food stamps from the USDA for legal immigrants who are not eligible for benefits under the federal food stamp program
• Offering educational programs to prepare TANF recipients for the responsibilities of home ownership

References:

Helping Families Achieve Self-Sufficiency: A Guide on Funding Services for Children and Families through the TANF Program. Washington, D.C.: U.S. Department of Health and Human Services. http://www.acf.dhhs.gov/programs/ofa/funds2.htm

Steisel, Sheri. A Checklist for State Legislators: Taking Advantage of the New Flexibility of Temporary Assistance to Needy Families Funds and State Maintenance of Efforts Funds. Washington, D.C.: National Conference of State Legislatures, December 21, 1999.

State survey conducted by Ann Morse and Amanda Culp, November - December 2000