Temporary Assistance For Needy Families - Impact of TANF

Impact of TANF

Discussions about the effectiveness of TANF by policymakers and proponents of welfare reform has centered on the rapid decline in the number of families on welfare since TANF went into effect. Indeed, if measured by the reduction in welfare caseloads, TANF has been a success. Between 1996 and 2000, the number of welfare recipients plunged by 6.5 million, or 53% nationally. Furthermore, the number of caseloads was lower in 2000 than at any time since 1969, and the percentages of persons receiving public assistance income (less than 3%) was the lowest on record.

Since the implementation of TANF occurred during a period of strong economic growth, there are questions about how much of the decline in caseloads is attributable to TANF program requirements. First, the number of caseloads began declining after 1994, the year with the highest number of caseloads, well before the enactment of TANF, suggesting that TANF was not solely responsible for the caseload decline. Research suggests that both changes in welfare policy and economic growth played a substantial role in this decline, and that no larger than one-third of the decline in caseloads is attributable to TANF

While declining caseloads dominates discussion about TANF’s effect, declining caseloads are an incomplete and misleading indicator of TANF’s success. Caseload reductions indicate less reliance on government assistance, but they do not account for the well-being of poor families and children. As such, other factors have been taken into account in assessing the impact of TANF: work, earnings, and poverty of former welfare-recipients; marriage and fertility of mothers; well-being of mothers; and child well-being.