"Leavers" from TANF and AFDC: How Do They Fare Economically?

Abstract

Temporary Assistance for Needy Families (TANF), a part of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, changed the philosophical ground and rules and regulations that apply to low-income families with children who seek federal income support. TANF recipients have less flexibility in charting their life courses than AFDC recipients had. This article presents the findings of a study that investigated how TANF leavers, in comparison with AFDC leavers, fared economically after they left the cash assistance rolls. The major finding is that the income status of AFDC leavers increased considerably, but that of TANF leavers declined. The authors argue that TANF leavers fared less well economically because their decisions about whether to work, to engage in work-related activities, and to leave cash assistance rolls were under stricter control. The data sources for this study were the 1993 and 1996 Survey of Income and Program Participation.