Center on Budget and Policy Priorities March 12, 2025
In a move that will significantly stymie state innovation in helping low-income families address barriers affecting their employment and earnings, the Department of Health and Human Services (HHS) has rescinded pilot projects awarded to five states to improve their Temporary Assistance for Needy Families (TANF) programs, indicating they will need to reapply under a future process. Establishing another process to select states for the pilot program, which Congress required on a bipartisan basis in 2023, will delay — and possibly derail — reforms to make TANF more effective in helping families support themselves.
Under TANF, the federal government provides a fixed block grant to states, which use these funds to provide, among other things, income assistance and employment-related services to...