One vehicle exists in the Senate that might provide an extension for the Temporary Assistance For Needy Families (TANF) Emergency Fund beyond September 30, 2010. The American Jobs and Tax Loopholes Closing Act (HR 5893), passed by the House in late July, could provide ongoing support for 37 states with subsidized employment programs.  Federal support for placing workers with private for-profit and not-for-profit organizations has been a boost to the businesses that employ these workers and to the individuals being provided work.  Various organizations estimate that over 250,000 jobs have been provided through subsidized employment opportunities.  In 14 days, the funding expires and many may again face joblessness. The legislation in the Senate would extend numerous tax credits to businesses set to run out at the end of the month, but the language also contains a section on the Emergency Fund.  It reads, “(1) rename the Emergency Contingency Fund for State Temporary Assistance for Needy Family Programs as the Emergency Fund for Job Creation and Assistance; and (2) extend appropriations for such Fund through FY2011.”  The budget is $2.5 billion, one half what was previously appropriated through American Recovery and Reinvestment Act (ARRA) funds. 

In October 2009, the unemployment rate reached the highest in this decade of 10.1 percent of the population.  The months following saw gradual decreases, and June and July 2010 stayed steady at 9.5 percent.  In August, however, the rate rose to 9.6 percent, strongly related to the completion of work by 115, 000 temporary employees of the Census Bureau.  Chances that the unemployment rate will increase for September are high, since many states have begun the process of laying off workers in anticipation of the end of subsidized employment.
 
Support in the Senate for passing HR 5893 is mixed, and may wane in the current fight on the Senate floor over tax breaks/cuts. 

About Kay Casey

Kay Casey has over 20 years of experience in federal and state child welfare policy and programs, having worked for the federal Administration for Children and Families (ACF) and the Florida Department of Children and Families prior to joining PCG. She is responsible for the review and assessment of fiscal processing systems that impact a state’s ability to identify, document, and report expenditures for federal reporting purposes accompanied with the programmatic impact on the state’s system of care.

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