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TO:
Mary M. Bourdette
Deputy Assistant Secretary, Human Services
Office of the Assistart Secretary for Legislation
FROM:
Assistant Secretary for Children and Families
SUBJECT:
Technical Assistance for Nick Gwyn, House Ways and Means Committee:
Options Regarding Supplantation
Background
Supplantation is the use of Federal TANF dollars for a legal TANF purpose, but to
replace (or supplant) former State expenditures for the same purpose or activity. The
"maintenance of effort" (MOE) provision of TANF allows a State to claim all
expenditures to which the State was entitled under the former AFDC and JOBS programs
for purposes of meeting the State's 75 or 80 percent spending requirement. But for other
pre-existing State and local programs that meet a TANF purpose, only expenditures (new
spending) that exceed the amounts spent in FY 1995 are allowable. (See Attachment A
for a description of how the MOE and "new spending" requirements are monitored.) A
similar statutory limitation does not apply to the use of Federal TANF funds. Recently,
there have been a number of instances reported in newspaper articles, identified by the
Center on Budget and Policy Priorities (CBPP) or included in State budget proposals of
States using Federal TANF funds to replace State spending.
While supplantation is not prohibited, there is substantial concern that practices that
reduce State spending on low-income families who critically need services may impede
the goals of welfare reform. For example, Chairman Nancy Johnson of the
Subcommittee on Human Resources of the Committee on Ways and Means wrote a letter
to Governors applauding their recent productive spending, but cautioning them to avoid
supplanting Federal TANF funds. The Administration has also been communicating
strongly with the States against supplantation in a variety of settings, including a series of
conferences for State legislators with NCSL and in individual meetings with States.
As a result, questions naturally arise about what additional steps might be taken to
prevent or prohibit supplantation, what issues these steps generate and the appropriate
timing of such efforts.
Goal: To maximize the resources available to serve low-income children and families
and ensure that Federal TANF funds are used to supplement, not supplant, existing State
and local spending.
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"ocrText": "TO:\nMary M. Bourdette\nDeputy Assistant Secretary, Human Services\nOffice of the Assistart Secretary for Legislation\nFROM:\nAssistant Secretary for Children and Families\nSUBJECT:\nTechnical Assistance for Nick Gwyn, House Ways and Means Committee:\nOptions Regarding Supplantation\nBackground\nSupplantation is the use of Federal TANF dollars for a legal TANF purpose, but to\nreplace (or supplant) former State expenditures for the same purpose or activity. The\n\"maintenance of effort\" (MOE) provision of TANF allows a State to claim all\nexpenditures to which the State was entitled under the former AFDC and JOBS programs\nfor purposes of meeting the State's 75 or 80 percent spending requirement. But for other\npre-existing State and local programs that meet a TANF purpose, only expenditures (new\nspending) that exceed the amounts spent in FY 1995 are allowable. (See Attachment A\nfor a description of how the MOE and \"new spending\" requirements are monitored.) A\nsimilar statutory limitation does not apply to the use of Federal TANF funds. Recently,\nthere have been a number of instances reported in newspaper articles, identified by the\nCenter on Budget and Policy Priorities (CBPP) or included in State budget proposals of\nStates using Federal TANF funds to replace State spending.\nWhile supplantation is not prohibited, there is substantial concern that practices that\nreduce State spending on low-income families who critically need services may impede\nthe goals of welfare reform. For example, Chairman Nancy Johnson of the\nSubcommittee on Human Resources of the Committee on Ways and Means wrote a letter\nto Governors applauding their recent productive spending, but cautioning them to avoid\nsupplanting Federal TANF funds. The Administration has also been communicating\nstrongly with the States against supplantation in a variety of settings, including a series of\nconferences for State legislators with NCSL and in individual meetings with States.\nAs a result, questions naturally arise about what additional steps might be taken to\nprevent or prohibit supplantation, what issues these steps generate and the appropriate\ntiming of such efforts.\nGoal: To maximize the resources available to serve low-income children and families\nand ensure that Federal TANF funds are used to supplement, not supplant, existing State\nand local spending."
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