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AFI Human Services Committee

Action Alert:
Proposed $3 Billion TANF Cut Breaks Federal Agreement With States

Yesterday, a House Appropriations subcommittee panel cut $3 billion in TANF (Temporary Assistance to Needy Families) block grant funds. This occurred during a markup of the FY 2000 appropriations bill for labor, health, human services, and education programs. NCSL strongly opposes this cut. It violates the agreement the federal government and the states made with passage of the welfare reform act in 1996. States agreed to give up guaranteed funding and accept block grant funding and program flexibility. The subcommittee action disregards the $56 billion in savings the federal government obtained by creating TANF and ending AFDC. Notably, the states have already spent state dollars in the form of Maintenance of Effort expenditures to earn these federal funds. The House action penalizes those states that have prudently not drawn down all their federal funds, leaving them in reserve, and does not account for state TANF obligations since February.

The subcommittee also accelerated the change in states' ability to transfer money from the TANF block grants into the Social Services Block Grant. States can now elect to transfer 10% of their TANF funds into the Social Services Block Grant, but in 2001, they can only transfer 4.25% of their funds. The subcommittee's version of the budget bill would make that change effective in FY 2000. That action hits states with a double whammy, because the subcommittee under-funded the Social Services Block Grant at $1.9 billion (same as last year), instead of the $2.3 billion level agreed to in the 1996 welfare reform legislation.

Call or fax your Representative on the House Appropriations Committee immediately. A list of the members follows. Full Appropriations Committee markup will be next Wednesday or Thursday. If your delegation is not represented on the Appropriations Committee, call Speaker Hastert's office at (202) 225-0600. URGE MEMBERS OF CONGRESS TO KEEP THE FEDERAL GOVERNMENT'S COMMITMENT TO WELFARE REFORM AND FULLY FUND TANF.