LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6261 NOTE PREPARED: Nov 23, 2021
BILL NUMBER: SB 327 BILL AMENDED:
SUBJECT: TANF Eligibility.
FIRST AUTHOR: Sen. Ford Jon BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill sets the income eligibility requirements for the Temporary Assistance
for Needy Families (TANF) program at a specified percentage of the federal income poverty level.
It requires the Division of Family Resources (DFR) to amend the state TANF plan or take any other action
necessary to implement the income requirements. The bill authorizes emergency rulemaking concerning the
payments.
The bill increases certain payment amounts under the TANF program. It also requires the payments to be
annually adjusted using the Social Security cost of living adjustment rate, but provides that the total
adjustment in a year must be reduced to the extent the adjustment would result in the transfer to the Child
Care and Development Fund grant program being less than the maximum allowable transfer under federal
law.
It repeals language regarding:
(1) payments for a child born more than 10 months after a family qualifies for assistance;
(2) the adoption of rules authorizing certain vouchers;
(3) eligibility for child support enforcement services;
(4) encouraging a family that receives assistance to receive family planning counseling; and
(5) requiring the DFR to apply a percentage reduction to the total needs of TANF applicants
and recipients in computing TANF benefits.
The bill makes conforming changes.
SB 327 1 Effective Date: January 1, 2022 (retroactive); July 1, 2022; July 1, 2023.
Explanation of State Expenditures: Summary - The bill potentially increases the basic assistance paid to
TANF recipients beginning in FY 2024. Any increase may be mitigated by the Family and Social Services
Administration (FSSA) establishing income eligibility and benefit amounts lower than the maximums
provided in the bill. Additionally, the number of individuals eligible for assistance may increase with the
elimination of certain restrictions on participation.
Additional Information - The bill limits maximum household income eligibility at up to 16% of the federal
poverty level (FPL). Currently, the maximum amount of need is a fixed dollar amount set in statute that
equates to between 13% and 16% of FPL depending on household size. The bill also increases the maximum
benefit award by 160%. The maximum benefit award set in statute would update annually with COLA
adjustments. In current law, the TANF benefit payable is the amount of need determined with a 90%
reduction applied. The basis for the amount of cash assistance award is not specified in the bill, and the 90%
reduction is repealed.
With the repeal of certain exclusions, the number of individuals in the TANF caseload could increase.
Between September 2019 and September 2020, there were about 600 individuals a year denied benefits under
these exclusions.
TANF Caseload: Eligibility criteria other than income eligibility, such as applicant job search requirements
and lifetime limits on benefits, impact the total number of families participating in TANF cash benefits. In
Indiana, the number of households receiving TANF decreased from 2014 to 2019, as had the number of
applications that were approved. However, beginning in 2020, the TANF caseload grew during the
COVID-19 pandemic. The extent to which these increases will remain and could impact total caseloads is
yet unknown. Due to lifetime limits, increases in caseloads now may not translate to continued increases over
the long-run.
Explanation of State Revenues: Use of TANF Block Grant and State Maintenance of Effort: Under TANF
rules, states have the authority to transfer up to 30% of any grant to the Social Security Block Grant or the
CCDF. The transfer of TANF funds to the CCDF would take precedence over any future increase in cash
assistance. [Indiana transfers federal TANF Block Grant money to the CCDF before any other expenditures
are made. In recent years, this transfer has been at the maximum amount allowable, or $61.8 M in 2020.]
The federal block grant may be carried forward for use in another year. The state is required to spend a
certain amount for maintenance-of-effort in order to receive the federal block grant. Spending that exceeds
the available federal block grant would from state funds.
SB 327 2 Table 1 - Estimated amount of federal TANF funding
available to Indiana: 2020
TANF Federal Block Grant to Indiana $206.1 M
State Maintenance of Effort 121.7 M
Carryover 37.5 M
Total 365.3 M
Less: Funds Used and Obligated 346.7 M
Federal Funds Available $18.6 M
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected:
Information Sources: https://fas.org/sgp/crs/misc/RL32748.pdf; https://fas.org/sgp/crs/misc/RL32760.pdf;
https://www.acf.hhs.gov/ofa/resource/tanf-financial-data-fy-2020; Hamilton Smith, FSSA.
Fiscal Analyst: Karen Rossen, 317-234-2106.
SB 327 3