Changing Cash Assistance Rules: Forecasting Effects on State Budgets and the Wellbeing of Low-Income Families

Temporary Assistance for Needy Families (TANF), the sole federal cash assistance program for low-income families with children, is difficult for families to access due to its stringent work requirements. The Fiscal Responsibility Act (FRA) of 2023 will further tighten work requirements starting in 2026. However, assessing the effects of these changes has been hindered by a lack of public data. Economists Gabrielle Pepin and Josep Nadal-Fernandez will estimate the effects of changes in states’ work requirements for TANF under the FRA on state budgets and the wellbeing of low-income families. They will analyze administrative TANF data, data from the Administration of Children and Families, and the Panel Survey of Income Dynamics for their study.