States can support children and their economies using direct cash assistance

• In Event: Strengthening the U.S. safety net and transfer programs for low-income families

Abstract

Efficient and responsive income support programs can reduce economic inequality and support economic mobility. If targeted effectively, these programs can help children, families, and workers meet their needs and provide the greatest return on investment to enhance broader social welfare. As state policymakers determine how to meet the growing needs of their constituents, they should optimize existing sources of support available to help the lowest-income children and families. The Temporary Assistance for Needy Families block grant program is the primary source of federal funds available to provide temporary direct cash assistance to families with children experiencing deep poverty, but the program provides too few dollars to too few families, limiting its potential impact. Although the program is imperfect, it provides valuable administrative infrastructure to reach some of the U.S. families living on the lowest incomes. Currently, states spend these dollars on other programs, including priorities that do not support the TANF program’s goals and that are often a poor investment of government resources, that do not provide the same return on investment that investments in children can.
To address this, we recommend states spend a greater portion of their dedicated TANF program funds on direct cash assistance to the children living on the lowest incomes. While these dedicated funds are available, states should take advantage of them. They can do this by increasing benefit amounts or providing benefits to a larger portion of eligible families to enable the program to support families in deep poverty better meet their basic needs.

Author

• Megan Rivera, Washington Center for Equitable Growth
  Presenting Author