In an effort to restore critical funding to 17 states, Rep. Lloyd Doggett (D-TX) introduced H.R. 2277 in late June 2011 in an attempt to extend Temporary Assistance for Needy Families (TANF) Supplemental Grants.  TANF Supplemental Grants were key negotiating points for Congress prior to the passage of the TANF Block Grant in 1996, as was the TANF Contingency Fund. Members of Congress who were not in support of the block grant strongly advocated for “safety nets” for states if child poverty rates increased or when economic situations developed that increased the need for public assistance.  Since 1996, 17 states have received Supplemental Grants to support their vulnerable and needy children and families. The states (AL, AK, AR, AZ, CO, FL, GA, ID, LA, MS, MT, NC, NM, NV, TN, TX, UT) are averaging child poverty rates of 22 percent and nine of the states have unemployment rates above the national average of 9.1 percent. 

With the expiration of Supplemental Grants on July 1, TANF funding for the states amounts to approximately $108 million for the remaining quarter of this fiscal year.  The states being cut off will have to make significant reductions in spending to cover the loss of funding.  Some of the cuts expected to be passed on to children and their families include: 1) reduction in monthly benefits, 2) reduction in the amount of time a parent can receive benefits, 3) elimination of substance abuse services for TANF recipients, and 4) suspension of programs that encourage and support families to move from welfare to work.  In addition to significant reductions in how TANF programs operate in these 17 states, states may experience difficulty in meeting work participation requirements as a result of federal funds to support welfare to work initiatives. 

The legislation sits in the Ways and Means Committee awaiting further action and while it only addresses the final quarter of the FFY 2011 budget, the future for Supplemental Grants in FFY 2012 is bleak as well.  During reauthorization of TANF prior to September 30, 2011, modifications may be introduced that would restore  funding to states.