Dear Mr. Walker:
The Deficit Reduction Act of 2005 (DRA) included a reauthorization of the TemporaryAssistance for Needy Families (TANF) program, the central element of this nation’s welfarereform effort. Under the original welfare reform law, enacted in 1996, we saw a wholesale shiftin federal welfare-to-work policies. This shift in policy gave states more flexibility to shape theirprograms while implementing work requirements that enabled qualified recipients to gain theskills and experiences needed to succeed in the workplace. As a result, many states implementeda “work first" approach to welfare reform, which involved an emphasis on moving recipientsquickly into private sector jobs, often using freed-up funds from reduced caseloads for traditionalwelfare to provide supports for those families engaged in work, such as child care assistance.
The reauthorization contained in the Deficit Reduction Act involves several key changesto the prior law. It explicitly requires federal regulations to define work participation activities,rather than allowing states the flexibility to define them. It expands the work participation rate calculation to include some families in “separate state programs." In our view, the modestincrease in funding for child care is insufficient and it is substantially less than what the Congressional Budget Office has estimated would be required to meet the new requirements. The reauthorization also made important changes to the “caseload reduction credit" towards the work participation rate and sanctions policy. All told, TANF reauthorization represents a significant narrowing of the previous legislation.
TANF is composed of a wide array of state approaches to reducing poverty andincreasing self-sufficiency. How individual states implement the new DRA provisions willdetermine whether the new rules will help improve outcomes for families, and especially,children. We request that you conduct a comprehensive assessment of the effects of the DRA onstate TANF policies. In particular, we would like to know:
• How are states changing their previous welfare-to-work strategies? To what extent havethe new federal definitions changed the work participation activities used by states and, if so,how?
• What changes in child care policy are states making? To what extent have the availability and priority given to families in different situations (such as current TANF recipients versus former TANF recipients and families in need of child care) changed as states implement the DRA?
• How are states implementing the new verification system required for work participation activities and is that new system having an impact on participants work choices/options?
• How are states changing their policies concerning sanctions under TANF, including those towards sanctioned families now covered by the definition of “work-eligible" individuals?
• Are “separate state programs" being altered in response to the new law? If so, whataspects are being changed and how many families are affected and in what ways
• How has the short time-table for implementation affected state planning and programs?
We request that GAO include site visits to a representative mix of states as part of the assessment.
If you have questions concerning this request, please contact Diedra Henry-Spires of Senator Baucus’ staff at (202) 224-4515.
Sincerely,
Max Baucus
Ranking Member Committee on Finance
Olympia Snowe Chair Committee on Small Business and Entrepreneurship
John Rockefeller
Ranking Member Subcommittee on Healthcare
Committee on Finance
Chris Dodd Ranking Member Subcommittee on Healthcare Education and Early Childhood Development Committee on Health, Education, Labor and Pensions
Tom Carper Ranking Member Subcommittee on Federal Financial Management, Government Information and International Security
Committee on Homeland Security and Governmental Affairs
