While Temporary Assistance for Needy Families (TANF) is commonly known as a cash assistance program for families with low incomes, it is also used for many other purposes. For example, child welfare agencies across the country use TANF as a flexible source of funding for child welfare activities.
In state fiscal year (SFY) 2022, child welfare agencies spent $2.9 billion in TANF funds. This represents a 13 percent decrease over the past decade and a 6 percent decline since SFY 2020.
Child welfare agencies’ use of TANF funds, SFYs 2012-2022
Source: SFY 2022 Child Welfare Financing Survey
Note: All dollar amounts have been inflated to 2022 levels. The figures presented in this graph reflect an analysis of 42 states with sufficient data across all six surveys conducted by Child Trends from 2012 to 2022 (surveys are conducted every two years).
Child welfare agencies may not have access to TANF dollars in every state or in every year, or they may receive reduced funds in some years. A lack of access or reduced funding levels may be especially likely during an economic downturn when there is often increased pressure on the TANF block grant due to higher caseloads involving cash assistance. Such a down cycle could make it difficult for child welfare agencies to rely on TANF to sustain ongoing services and activities. In fact, when asked why their TANF spending changed over time, several states indicated that they decided to shift TANF funding from child welfare to other purposes.
Child Trends and Child Welfare Financing
Every two years, Child Trends—with support from Casey Family Programs and the Annie E. Casey Foundation—conducts a national survey of how each state finances child welfare. Data from this survey result in a national report, state-level factsheets, funding source factsheets, and other products that describe funding sources such as Title IV-E, TANF, state/local funding, and more.
Experts from Child Trends also work with states to help them map how their unique child welfare systems are financed, clarify how decisions are made, and offer insights into potential financing-related changes to promote best practices and improved outcomes for children and families. If you are interested in learning more about our work in this area, please contact Kristina Rosinsky.