National TANF Inflation Protection and Family Benefit Restoration Act

11

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The Issue

Purpose and legislative request

We request that Congress amend Title IV-A of the Social Security Act to (1) restore the

purchasing power of the federal Temporary Assistance for Needy Families (TANF) basic

block grant to its FY1997 level, adjusted for cumulative inflation, and (2) require annual

inflation adjustments to states’ TANF basic cash-assistance benefit standards. These are

prospective reforms; the proposal does not create retroactive payments for past

recipients.

Background and problem

TANF was enacted in 1996 and first funded in FY1997. Its basic federal block grant has

remained near $16.5 billion in nominal dollars. Congressional Research Service reported a

49% decline in its inflation-adjusted purchasing power between FY1997 and FY2024. States

set cash-assistance benefit amounts under their own programs, so raising federal

appropriations alone does not guarantee increased payments to families.

Proposed statutory provisions

Section 1 — Federal grant restoration.

For the first full fiscal year after enactment, calculate a new national basic block grant

using the FY1997 baseline multiplied by the ratio of the latest available annual-average

CPI-U to the FY1997 annual-average CPI-U. Apply an equitable state and tribal allocation

formula, with transition protections and an independently scored fiscal estimate.

Section 2 — Permanent federal indexing.

Beginning the following fiscal year, automatically update the restored federal block grant

each year by the change in annual-average CPI-U. Do not reduce nominal grant amounts

during deflation; publish calculations annually.

Section 3 — Required family benefit indexing.

Condition receipt of designated federal inflation-restoration funds on states and other

participating jurisdictions adopting annual CPI-U cost-of-living adjustments for their basic

TANF cash-assistance standards. Establish a federally defined minimum indexing rule

while allowing states to provide more generous benefits and maintain existing program

flexibility where consistent with the new requirement.

Section 4 — Initial state benefit catch-up.Require each state to identify the last year in which its basic cash-assistance standard was

increased, calculate cumulative inflation since that date, and submit a phased restoration

plan. Congress should specify a federal funding share and hardship exceptions for

jurisdictions facing extraordinary fiscal constraints.

Section 5 — Accountability and safeguards.

Require public state reports on baseline benefit standards, adjustment formulas, families

served, federal and state expenditures, and administrative costs. Prohibit diversion of

funds specifically designated for cash-benefit inflation restoration; preserve due-process

protections and tribal consultation.

Section 6 — Implementation and oversight.

Direct the U.S. Department of Health and Human Services, Administration for Children

and Families, to issue implementing regulations within 12 months of enactment, with

benefit indexing beginning no later than the next full state fiscal year after regulations

take effect. Request GAO review after three years.

Fiscal and implementation considerations

Congress should request a current Congressional Budget Office estimate before assigning a

dollar amount. A rough historical comparison cannot substitute for scoring, because grant

restoration, state benefit catch-up, caseload changes, state maintenance-of-effort spending,

and administrative costs affect the total. Congress should consider a multi-year ramp-up

and separate federal appropriations for implementation. Annual adjustments preserve

purchasing power but do not by themselves establish a nationally uniform benefit level.

Citizen petition to the United States Congress

To the members of the U.S. House Committee on Ways and Means, the U.S. Senate

Committee on Finance, and our elected representatives: We, the undersigned, request

consideration of legislation that restores the federal TANF block grant’s purchasing power

lost since FY1997 and establishes enforceable annual inflation adjustments to state TANF

basic cash-assistance benefit standards. We request public hearings, an independent fiscal

assessment, and transparent implementation rules. Signing expresses support for

congressional consideration of these reforms; it is not a claim that legislation has already

been introduced.

Petition Updates