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Temporary Assistance for Needy Families (TANF) "Final Rule" - As Sent to OMB [binder] [2]

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This provision enhances the inherent interest of States to help families become independent. As a State reduces its caseload, the risk of a penalty lessens because lower work participation rates are easier to achieve. It also increases a State's chance of qualifying for a lower TANF MOE requirement, which would reduce its risk of incurring an MOE penalty. To establish the caseload base for FY 1995, we proposed using the number of AFDC cases and AFDC Unemployed Parents reported on ACF-3637. To avoid artificial reductions in the minimum participation rates, the NPRM included cases in any separate State program used to meet the maintenance-of- effort (MOE) requirement in this caseload calculation. Under the proposed rules, we would not have granted a caseload reduction credit unless the State reported case- record information for these separate State programs. Comment: Some commenters suggested that allowing States to reduce their work participation rates emphasizes caseload reduction over the goal of self-sufficiency. Others strongly supported the caseload reduction concept. Response: By including this provision in the statute, Congress was attempting to recognize States for their success in getting individuals off of assistance. We 321

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