Tug of war over $125 million in temporary assistance to needy families surplus brewing
Advocates want to see money 'go into the hands of families'
Advocates want to see money 'go into the hands of families'
Advocates want to see money 'go into the hands of families'
A tug of war over TANF, Temporary Assistance to Needy Families, appears to be brewing.
Every year, the federal government sends about $56 million to Nebraska.
But the state doesn't spend all of it.
In fact, state Auditor Mike Foley said over the years, the state has built a surplus of over $125 million.
"Nebraska's sitting on TANF balances well in excess of 200% of the annual allotment of federal funds made to us. No other state in our region even comes close to that," Foley said.
He testified before a Legislative panel Friday that examining what to do with the money.
State Sen. Danielle Conrad would like to see the program updated to increase cash payments to families and make them more accessible.
"We should really be putting them directly into the hands of the families who need them to help cover gaps that other programs don't cover," Conrad said.
The Department of Health and Human Services released its plan, which outlines a number of programs in place or pending it meets the federal goals of TANF and would deplete the surplus in four years.
It includes direct payments, reducing dependency through job training and marriage, preventing pregnancies out-of-wedlock and encouraging two-parent families.
A work group currently examining changes in the child welfare system is also looking at tapping $3 million a year from the fund for prevention programs.
"If spending continues as projected, the surplus will be successfully reduced by 2027, requiring a reevaluation of services to match the annual TANF reward at that time," DHHS Chief Financial Officer John Meals said.
But Katie Nungesser of Voices for Children and a former recipient of aid as a single mother said the number of kids living in extreme poverty is growing.
"The child poverty rate is climbing, especially after some of the aid from the pandemic has fizzled out," Nungesser said.
She said there are 60,000 children who are living in poverty half of those are in extreme poverty.
"So if we're going to spend this rainy day fund down, we want to see that money go into the hands of families," Nungesser said.
There are several bills that are currently pending in the Legislature.
LB 290 would increase who is eligible, increase payments and adjust every two years for inflation.
LB 310 increases the Standard of Need, which would increase payments.
LB 233 another would stop counting child support payments in determining eligibility for aid to dependent children benefits.