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September 2003
Welfare Reform
Information
on TANF Balances GAO-03-1094
The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 made sweeping changes to the nations
key welfare program for needy
families. It established the $16.5 billion Temporary Assistance
for Needy Families (TANF)
block grant, which provides to the states federal funds
to support low-income families and help these families reduce
their dependence on
welfare. TANF provides states significant flexibility - within
federal guidelines - to determine who is to be served and what services to provide. States
also have the flexibility to transfer up to 30 percent
of their TANF block grant each year to their child care or social services block grants. Along with this
flexibility, states must meet federal requirements
designed to ensure that TANF assistance is transitional in
nature and that parents receiving aid take steps to become
employed. 
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