The Familiar Tune – TANF Stalled Again

 

After promising developments in the Senate earlier this year, TANF reauthorization fell victim to the politics of the budget debate. A floor vote had been expected in early April, but was postponed after the Senate Budget Committee Chairman, Judd Gregg (R-NH), and other conservatives objected to the cost of the PRIDE (Personal Responsibility and Individual Development for Everyone) Act reported on a bipartisan vote by the Senate Finance Committee.  Senator Gregg has indicated that he wants more spending cuts to offset the increased costs of the PRIDE Act – even though these costs are modest, especially when compared with the $70 billion in new tax cuts (that are NOT offset) called for by the budget resolution. The PRIDE Act’s costs include $4 billion to extend Transitional Medical Assistance (for families leaving welfare for work) for 5 years, $5.5 billion over 5 years in new funding for child care (partially offset by some controversial changes to the Earned Income Tax Credit), $1 billion in new funding for the Social Services Block Grant (SSBG), and $1 billion for transitional jobs and employment placement linked to business needs.  These are all critical components to support states’ efforts to help families move off and stay off of welfare.

 

It remains unclear how this Senate impasse will be resolved.  With the recently passed budget resolution calling for a number of cuts to mandatory spending programs through the reconciliation process, it will be difficult for the Senate to move a TANF bill that calls for spending increases.  However, Sen. Chuck Grassley (R-IA), Chairman of the Finance Committee, has been a staunch defender of the PRIDE Act produced by his committee and the bill likely has enough support to beat back any budget points of order that might be raised if it was brought to the floor for a vote.

 

On the House side, TANF reauthorization remains at the committee level and no action is currently scheduled. House conservatives have also expressed opposition to the costs of the PRIDE Act and remain committed to the more punitive provisions of previously passed House reauthorization bills. These concerns over costs again stand in sharp contrast to the House’s willingness to pass expensive estate tax repeal.

 

The Outlook?

 

The current TANF extension expires at the end of June.  Congressional staff sources continue to say that they want to move a TANF bill this year, but the motivation to do so is lacking at this point among congressional leaders.  Some in Congress have advocated that reauthorization be done through the budget reconciliation process, which could mean fewer policy changes (e.g. stricter work requirements), but would eliminate the possibility of ANY increased funding for child care and other work supports (the purpose of reconciliation is to achieve savings from programs). Others have raised the possibility of a year-long extension, but conservatives seem unlikely to go along with this and those who have been working for three years now on TANF reauthorization note that each time it is delayed, the policy proposals that follow are more harmful than previous ones. Members of the human needs advocacy community disagree over the best strategy for proceeding, but remain firm in the message that TANF reauthorization should be about helping families move out of poverty and toward self-sufficiency.

 

For More Information

 

Previous NAC Updates – TANF Moving, House and Senate TANF Bills

 

Center on Budget and Policy Priorities – A Brief Guide to TANF Reauthorization Issues

 

Coalition on Human Needs – Budget Politics and TANF

 

Center for Community Change – TANF and Budget Reconciliation