Noem Introduces Legislation to Reduce Poverty, Promote Financial Independence

Washington, D.C. - July 27, 2017 (The Ponder News) -- Rep. Kristi Noem has introduced two bills that aim to improve the outcomes of the Temporary Assistance for Needy Families (TANF) program, the country’s primary assistance program for low-income individuals and families.

“The best poverty reduction program out there is a good job,” said Noem. “Unfortunately, today’s programs too often perpetuate poverty rather than opportunity. This legislation aims to bring greater integrity and accountability to the TANF program while reaffirming its core mission: offering upward mobility and the opportunity for greater financial independence to hardworking Americans.”

The Improving Employment Outcomes of TANF Recipients Act, aims to increase the employment, job retention, and earnings of TANF recipients. To accomplish this, Noem’s bill would base a portion of the TANF block grant on a state’s success in helping TANF recipients enter, retain, and advance in employment.

Meanwhile, the TANF Accountability and Integrity Improvement Act, aims to bring more accountability to the program. More specifically, TANF currently requires states to ensure 50% of program recipients participate in work-related activities, such as working, searching for a job, or training for one. If states spend more than the federal government requires, the 50% threshold can be decreased. In extreme cases, the threshold can be reduced to 0%.

Some states are counting third-party spending as “state spending” and driving their apparent investments to artificially high levels. As a result, those states don’t need as many TANF recipients to be engaged in work-related activities in order to continue receiving full federal funding. Under Noem’s legislation, states would no longer count spending by third parties as state spending, meaning states would need to engage more adults in work-related activities in exchange for federal benefits, as the program was originally intended.

Of note, South Dakota does not count third-party spending as state spending in order to reduce the portion of TANF recipients engaged in work-related activities.

“We need to ensure other states follow South Dakota’s example,” said Noem. “By continuing to engage participants in work activities at the level intended, South Dakota has upheld the integrity of the program and ensured the support we provide through TANF is support that really helps struggling families.”