American Public Human Services Association

Issues & Policy

Temporary Assistance for Needy Families
Child Care
Child Support
Child Welfare
Food Stamp Program

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

Legislation and Appropriations

The House and Senate have returned to wrap up the 107th Congress in a brief "lame-duck" session. It is expected that lawmakers will pass another continuing resolution (CR) to fund government programs at current levels through January 11, 2003. House Speaker Rep. Dennis Hastert (R-Ill.) has indicated the House plans only to take up the CR and Homeland Security legislation, and then adjourn. The Temporary Assistance for Needy Families program and the Child Care and Development Block Grant are part of the CR but may be extended to March 31, 2003. In addition, the amount states can transfer from TANF to the Social Services Block Grant will remain at 10 percent.

Agency Action

HHS Releases State Innovation Grants
On October 3, the HHS Office of the Assistant Secretary for Planning Evaluation awarded approximately $2.5 million in grants to support innovative state health and human services delivery programs. The initiative seeks to increase the effectiveness of health and human services by fostering innovative approaches to service delivery. Another program goal is to share information with other state agencies and interested parties so they may learn about, and potentially replicate, innovative approaches. The grantees include social service or human service departments in Alaska, Arizona, Arkansas, Colorado, Delaware, Iowa, Kansas, Massachusetts, New Hampshire, South Carolina, and South Dakota. The Maryland Department of Aging and the District of Columbia Department of Health also received grants. More information is available on the Internet at http://www.os.dhhs.gov/news/press/2002pres/20021003b.html.

HHS Awards Bonuses for Reductions in Out-of-Wedlock Births
On October 4, HHS awarded bonuses of $19.9 million each to Alabama, Colorado, the District of Columbia, Michigan, and Texas and a bonus of $888,500 to the Virgin Islands for achieving the nation's largest decreases in out-of-wedlock births between 1997 and 2000. This is the fourth year that Alabama, the District of Columbia, and Michigan have received the award. The out-of-wedlock birth rate fell 3.5 percent in the District of Columbia, 2.6 percent in the Virgin Islands, 1.2 percent in Michigan, 0.7 percent in Colorado, 0.6 percent in Texas, and 0.5 percent in Alabama. The annual bonuses are awarded to as many as five states and to up to three eligible territories. All states are required to develop strategies and goals for reducing out-of-wedlock births. To receive the bonuses, states must also show a decrease in their abortion rate between the most recent year and 1995. More details are available at http://www.os.dhhs.gov/news/press/2002pres/20021004a.html.

HHS Releases FY 2001 TANF Work Participation Rates
On October 17, the HHS Office of Family Assistance released Information Memorandum No. TANF-ACF-IM-2002-02 with the TANF state work participation rates for states for fiscal year (FY) 2001. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 established mandatory work requirements and minimum annual work participation rate standards for states operating a TANF program. The minimum work participation rate standards for FY 2001 are 45 percent for the all-families rate and 90 percent for two-parent families. All states, the District of Columbia, and Puerto Rico met or exceeded their minimum all-families work participation rate. Of the 33 states (and the District of Columbia and Guam) that had two-parent families in their TANF programs, 30 states met or exceeded their minimum two-parent families work participation rate. Only five jurisdictions failed to meet the two-parent work requirement, while 17 were not subject to the measure because they do not have any two-parent families in the TANF program, or these parents are in a separate state program. More information on individual state rates is available on the Internet at http://www.acf.hhs.gov/programs/ofa.

CHILD CARE

New Reports

Report Released on State Child Care Quality Initiatives
The Institute for a Child Care Continuum at Bank Street College of Education, in conjunction with Abt Associates Inc. and the National Center for Children in Poverty of the Mailman School of Public Health, has released a two-volume report, Assessing Child Care and Development Fund (CCDF) Investment in Child Care Quality. Volume I is a study of selected state initiatives and Volume II provides program profiles. The reports represent the first year's work of a study funded by the Child Care Bureau to determine the objectives states aim to achieve with the CCDF quality improvement funds, how states design initiatives to meet their needs, what kinds of strategies states use to implement program designs, and how states measure the results of these initiatives. To obtain copies of the report, send an e-mail to Sally Mabon at the institute at smabon@bnkst.edu. Plans are underway to provide for ordering the report as well as the ability to download individual state program profiles on the Internet at http://www.bnkst.edu.

GAO Releases Report on Child Care Reimbursement Rates
On October 18, the General Accounting Office (GAO) released a report, Child Care: States Exercise Flexibility in Setting Reimbursement Rates and Providing Access for Low-Income Children. The report was requested by Senators Edward Kennedy (D-Mass.), Christopher Dodd (D-Conn.), and Jack Reed (D-R.I.). It describes how states set reimbursement rates and calculates to what extent subsidies and copayments allow families access to specific types of child care providers in selected communities. In addition to surveying all 50 states and the District of Columbia, field visits were conducted in Illinois, Maryland, and Oregon. The report affirms that states consider market rate survey results as well as budget and policy goals in setting maximum reimbursement rates and that all states have conducted market rate surveys in the past two years that obtained data on providers' fees. The report finds that states set differing reimbursement rates based on geographical differences in providers' fees and children's ages. The report also determined that access to child care centers and family home providers varied widely as a result of different subsidies and family copayments established by each state. A copy of the report can be obtained on the Internet at http://www.gao.gov/new.items/d02894.pdf.

CHILD SUPPORT

Legislation

Bankruptcy Prospects Dim
Prospects have dimmed somewhat for passage of the bankruptcy reform bill (H.R. 333) during this month's lame-duck session of Congress. To pass the bill in the House, the Republican leadership would have to upset conservatives who oppose language related to the treatment of abortion clinic demonstrators under bankruptcy law. Unless passage is guaranteed in the Senate, the House leadership would be reluctant to upset these members. Although supporters in the Senate have the 60 votes needed to overcome a filibuster, dispensing with the issue could take too much time during a potentially crowded lame-duck session. Thus, it is unclear if the Senate could pass the bill this year. Further, some conservative members of Congress would rather wait to take up bankruptcy reform again next year in an all-Republican controlled Congress, when they can guarantee removal of the abortion clinic amendment. A countervailing force toward passage of the bill this year, however, is that the bill's sponsor in the House, Rep. George W. Gekas (R-Pa.), lost his bid for reelection. Passing the bill this year would give a nod to his leadership on the issue. The bill would make it more difficult for debtors to file under Chapter 7 of the bankruptcy code, which allows them to escape debts after liquidating some assets. Under the measure, more debtors would have to file under Chapter 13, which requires eventual repayment of most or all debts. The bill includes several provisions related to child support, including one that would increase the priority of child support debt in bankruptcy cases.

New Reports

Census Releases Report on Child Support
The Census Bureau recently released a report, Custodial Mothers and Fathers and Their Child Support: 1999, detailing basic statistics on families receiving child support. In Spring 2000, 13.5 million parents had custody of 21.7 million children under 21 years of age whose other parent lived somewhere else. Overall, about 26 percent of all children under 21 living in families had a parent not living in the home. About 7.9 million of the 13.5 million parents had some type of child support agreement or award in place. Of all custodial parents, 85 percent were mothers and 15 percent were fathers. Custodial mothers who received any child support payments received an average of $3,800 in 1999. The proportion of custodial parents and their children living below the poverty level declined from 33 percent in 1993 to 26 percent in 1999. Despite the decline in poverty for these families, the rate remained significantly higher than the rate for married-couple families with related children in 1999 (6 percent). Finally, the Census Bureau reported that the proportion of custodial mothers receiving TANF fell from 26 percent to 11 percent between 1993 and 1999. The report can be found on the Internet at http://www.census.gov/prod/2002pubs/p60-217.pdf.

CLASP Report Covers Hearing Rights in Child Support Distribution Cases
The Center for Law and Social Policy (CLASP) recently released a report by Paula Roberts, If You Don't Know There's a Problem, How Can You Find a Solution? The report gives an advocate's perspective on the need for notice and hearing rights in child support distribution cases. Roberts expresses concern that some states do not recognize certain notice and adequate hearing rights of custodial and noncustodial parents on issues relating to the distribution of child support. Current and former cash assistance recipients using the IV-D program to enforce their child support orders are entitled to notice when child support is collected on their behalf for as long as the public assistance assignment is in effect. The notices should be sent monthly or quarterly. Roberts asserts that other states do not provide adequate due process for disputes related to child support distribution. She fears that as a result, families may not be getting the proper child support payments. She suggests state advocates petition for rulemaking in this area or push for legislation. Finally, Roberts highlights the completeness of California's grievance procedure and recommends it as a model for other states. A copy of the report can be viewed on the Internet at http://www.clasp.org.

CHILD WELFARE

Legislation

On October 10, Rep. Peter Hoekstra (R-Mich.) introduced H.R. 5601, a bill to reauthorize the Child Abuse Prevention and Treatment Act (CAPTA). H.R. 5601 would continue the authority for CAPTA programs through 2007, with slight increases in authorized funding levels. CAPTA basic state grants and discretionary grants would have a combined authorization amount of $120 million (FY 2002 appropriations were $48 million). The legislation is a compromise between S. 2998, the bill approved by the Senate Committee on Health, Education, Labor, and Pensions (HELP) last September, and H.R. 3839, the Keeping Children and Families Safe Act of 2002, passed by the House last April. The legislation incorporates CAPTA provisions that have been agreed to by the House and Senate. The bill includes many of the provisions adopted in the two original measures, including directing basic state grant funding to improving the child protective services (CPS) system and supporting the development of linkages between CPS and health services. The legislation uses the Senate's language as the agreed-upon provision authored by Rep. Jim Greenwood (R-Pa.) on protective services for infants born with drug-addiction, which offers states more flexibility in developing procedures for addressing the needs of such infants. Several items have not yet been resolved, including a CAPTA amendment sponsored by Sen. Hillary Clinton (D-N.Y.) creating a new $10 million spending authority for "opportunity passports," aimed at promoting the financial security of youths in foster care and youths aging out of foster care, and other new spending authorities proposed by the late Sen. Paul Wellstone (D-Minn.) as amendments to the Family Violence Prevention and Services Act. CAPTA reauthorization is not expected to be taken up during the current lame-duck session of Congress. When the 108th Congress convenes in January, the CAPTA reauthorization process will begin again.

FOOD STAMP PROGRAM

Agency Action

FNS Issues Immigrant Eligibility Guidance
On October 17, the Food and Nutrition Service (FNS) sent a guidance letter to state Food Stamp Program (FSP) directors outlining the changes in immigrant eligibility that took place in the 2002 farm bill (the Farm Security and Rural Investment Act of 2002, P.L. 107-171). The legislation restores FSP eligibility to many legal immigrants who lost benefits under the 1996 welfare reform legislation. Section 4401 restored benefits for some disabled aliens on October 1, 2002, but the majority of legal immigrants will be affected on April 1, 2003, when qualified aliens who have been in the country for five years regain eligibility. A third group, those under 18 regardless of their date of entry into the country, regain eligibility effective October 1, 2003. Along with the letter, FNS provided supplementary implementing guidance giving state agencies a few months for notifying households of the new law, training workers, and making the necessary computer adjustments. The guidance encourages state agencies to start taking applications in February 2003 for households with members whose eligibility will start on April 1. If a state chooses this option, FNS will grant automatic waivers of the notice requirements at 7 CFR 273.2 (g)(3). If a state wants to take applications prior to February 1, 2003, it will need to submit a waiver request. The guidance also strongly encourages states to conduct case record reviews as soon as possible and provide written notice to households informing them of the changes in the law. States are also provided with specific information on eligibility criteria for restoration of benefits. This includes explanation of the five-year requirement, the definition of a qualified alien, and further clarification of the role of the Immigration and Naturalization Service (INS) in determining the status of an immigrant. The guidance reviews several other important areas, including sponsored deeming and QC procedures. A complete copy of the guidance is available on the Internet at http://www.fns.usda.gov/fsp/rules/Legislation/2002_farm_bill/memo_forward_guidance.htm.

FNS Recognizes States for Food Stamp Achievements
On October 30, FNS presented awards to several states for their achievements in FSP administration. The awards were announced at the annual conference of the American Association of Food Stamp Directors, an APHSA affiliate. Ten jurisdictions were recognized for very low payment error rates: Arkansas, Louisiana, Minnesota, Mississippi, Rhode Island, South Carolina, South Dakota, Texas, the Virgin Islands, and Wyoming. Three states were cited for the greatest degree of improvement in payment accuracy: New Jersey, New York, and Utah. Six states received awards for low or improved negative error rates: Minnesota, Nebraska, New Jersey, New Mexico, South Dakota, and Washington. Four states were awarded for the highest participation rates: Kentucky, Maine, Missouri, and South Dakota. Four states also received recognition for the most improved participation rates: Delaware, Nevada, Wisconsin, and Wyoming. Pennsylvania and Washington were cited for exemplary innovations in customer service and access. FNS noted that decisions for awards in several of the categories were patterned after criteria that will be used for the new financial award system that went into effect on October 1, 2002, for FY 2003 performance.

New Reports

The U.S. Department of Agriculture (USDA) Economic Research Service (ERS) has released a number of recent reports. They include two recent FSP issue briefs in its "Issues in Food Assistance" series. How Unemployment Affects the Food Stamp Program examines the link between unemployment and FSP, emphasizing the potential magnitude of economic and policy changes on FSP caseloads. The authors find that a 1 percentage point increase in the unemployment rate leads to about 700,000 more FSP recipients in the first year. In the longer run, this increase leads to 1.3 million additional FSP recipients. The brief is available on the Internet at http://www.ers.usda.gov/publications/fanrr26/fanrr26-7/. The second issue brief is Assessing the Self-Sufficiency of Food Stamp Leavers. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 imposed work-related requirements for able-bodied adults without dependents (ABAWDs) and tighter limitations on their participation in FSP. This brief reports findings of four state studies, jointly funded by ERS and the HHS Office of the Assistant Secretary for Planning and Evaluation, to determine the well-being of ABAWDs who had left FSP in the post-reform era. The brief is available on the Internet at http://www.ers.usda.gov/publications/fanrr26/fanrr26-8/.

Other recent ERS reports include Reforming Welfare: What Does It Mean for Rural Areas? by Leslie Whitener, Bruce Weber, and Greg Duncan. The Personal Responsibility and Work Opportunity Reconciliation Act dramatically altered the social safety net for poor Americans, including the seven million people living in poverty in rural areas. This issue brief examines evidence from recent research about rural-urban differences in welfare reform impacts on program participation, employment, earnings, and poverty and assesses how well welfare reform is working in rural areas. The report, ERS Food Assistance and Nutrition Research Report No. FANRR26-4 (June 2002), is available on the Internet at http://www.ers.usda.gov/publications/fanrr26/fanrr26-4. ERS has also published Effects of Changes in Food Stamp Expenditures across the U.S. Economy, by Kenneth Hanson and Elise Golan. FSP provides assistance to more households during recessions and to fewer households during times of economic expansion. These changes in FSP expenditures can have stabilizing effects on the economy, stimulating economic activity during recessions and slowing demand during expansions. The brief shows that FSP provides an economic stimulus during recessions only if the federal government funds the increase in program expenditures through emergency financing, rather than through increased taxes or other budget-neutral means. The report, ERS Food Assistance and Nutrition Research Report No. FANRR26-6 (August 2002), is also available on the Internet at http://www.ers.usda.gov/publications/fanrr26/fanrr26-6/. ERS has also issued Food Assistance Landscape, September 2002, by Victor Oliveira. Nearly one in six Americans is served by one or more of the 15 domestic food assistance USDA-administered programs at some time each year. The programs provide needy persons with access to a more nutritious diet, provide opportunities to improve children's eating habits, and help farmers by creating an outlet for the distribution of food purchased under farmer assistance authorities. The report provides a concise summary of USDA's food assistance programs at the midpoint of FY 2002, including trends and economic conditions affecting the programs. The report, ERS Food Assistance and Nutrition Research Report No. FANRR28-1 (September 2002), is available on the Internet at http://www.ers.usda.gov/publications/fanrr28-1/.

Authors: Desmond Brown, Kathryn Dyjak, Larry Goolsby, Jennifer Grayson, Shari Gruber, Justin Latus, and Andy Woodall.
Editors: Larry Goolsby, Amy Plotnick, Sybil Barnes, and Jason Patterson.
Design and Layout: Jason Patterson.
© 2002 by the American Public Human Services Association.
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