Mandatory Spending
Function 600 - Income Security
Reduce the State Family Assistance Grant for TANF by 10 Percent
CBO periodically issues a compendium of policy options (called Options for Reducing the Deficit) covering a broad range of issues, as well as separate reports that include options for changing federal tax and spending policies in particular areas. This option appears in one of those publications. The options are derived from many sources and reflect a range of possibilities. For each option, CBO presents an estimate of its effects on the budget but makes no recommendations. Inclusion or exclusion of any particular option does not imply an endorsement or rejection by CBO.
Temporary Assistance for Needy Families is a federal program that provides cash assistance, work support, and other services to some low-income families. Almost all of the federal government’s funding for that program takes place through a block grant called the state family assistance grant. This option would reduce the funding available to each state through that grant by 10 percent, saving about $16 billion over 10 years.