TANF Employment Outcomes Rules: What States Should Know

The Fiscal Responsibility Act of 2023 requires states to report employment and education outcomes for individuals enrolled in their Temporary Assistance for Needy Families (TANF) program.

The Issue

When comparing employment and education outcomes across state TANF programs, caution should be taken to avoid misleading results or consequences due to differences in program structure.

Key Findings

• Comparing TANF outcomes across states may result in misleading results as program structures vary in assistance duration, eligibility, and assistance requirements.  

• Obtaining earnings and education data for individuals no longer associated with the TANF program may be an obstacle for states who haven’t historically measured these types of outcomes.  

• Example performance indicators include the percentage of people who were work eligible when they left TANF and who are employed in the second or fourth quarter after leaving the program, median earnings of those employed during a specific quarter, and the percentage of people who obtain a high school diploma or GED while receiving TANF benefits.  

• The new legislation will allow up to five states to focus on activities aimed at improving employment and enrollee wellbeing to establish benchmarks for these outcomes.  

Conclusion

Measuring education and employment outcomes could serve as an incentive for states to provide TANF assistance to families with higher income, as well as provide other supports to improve educational and employment outcomes.

About the Author/Grantee

The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Visit the Urban Institute’s Health Policy Center for more information specific to its staff and its recent research.