Robert L. Ehrlich, Jr. letter to Ms. T., January 28, 2000

ROBERT L. EHRLICH, JR. COMMERCE COMMITTEE ASSISTANT DEPUTY MAJORITY WHIP Congress of tfje Untteb States ЩоШ of Eepregentattoeg TOaSftington, BC 20515-2002 January 28, 2000 LUTHERVILLE. MO 21093 Dundalk, MD 21222 (4101 284-6828 Dear^^^H^H Thank you for communicating to me your views regarding funding for the Temporary Assistance to Needy Families. I benefit by knowing your thoughts on this important issue. During the 104th Congress, Republicans in Congress made good on their promise to the American people by passing the historic Welfare Reform Act of 1996 (P.L. 104-193). This highly successful Welfare Reform law ended need-based aid for many aliens, added tight work rules to the food stamp program for adults under age 50 without dependents, narrowed eligibility of disabled children for Supplemental Security Income (SSI), and reduced funding for Title XX Social Services. This law, however, greatly enlarged child care funding. As part of the new Welfare Reform law, Congress created the Temporary Assistance for Needy Families (TANF), a fixed block grant to states for time-limited and work-conditioned aid, to replace the traditional entitlement program of Aid to Families with Dependent Children (AFDC). Specifically, TANF imposes a 5-year limit on federally funded aid and requires states to achieve minimum work participation rates. TANF greatly enlarged state discretion in operating family welfare, and it ended the entitlement of individual families to benefits. Under TANF, states decide what categories of needy families to help and whether to adopt financial rewards/penalties to induce work and other desired behavior. Further, TANF explicitly permits states to administer benefits and provide services through contracts with charitable, religious, or private organizations. Under TANF, states have adopted varying combinations of tougher work sanctions, "Work First" policies, financial rewards for work, and diversion of applicants from enrollment. Welfare-to-work efforts have urgency because the law restricts federally funded TANF aid for an adult to 5 years (lifetime limit), and many states impose shorter limits. Combined federal and state TANF spending (excluding child care) totaled $21 billion in FY1998, down 12% from FY1997 ($23.8 billion) and down 25% from comparable FY1996 spending for AFDC and related programs ($28.2 billion). As of July 16, 1999, states had an unobligated TANF balance of $4.2 billion. The second annual report on the block grant program of Temporary Assistance for Needy Families (TANF) says that the fraction of current adult, recipients who have jobs has reached 23% (double the pre-TANF level of 1 1.2%). PRINTED ON RECYCLED PAI