Final

Issued by: Administration for Children and Families (ACF)

Issue Date: October 30, 1997

To:

State Agencies administering the Temporary Assistance for Needy Families (TANF) Program under Title IV-A of the Social Security Act, as amended by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), and Other Interested Parties.

Subject:

Revised TANF Maintenance of Effort (MOE) Levels for States

References:

TANF-ACF-PI-96-2, “Maintenance of Effort Requirements,” dated December 6, 1996, and section 409(a)(7) of Title IV-A of the Social Security Act

Purpose:

This program instruction informs States of TANF MOE levels which have been revised subsequent to the issuance of TANF-ACF-PI-96-2.

Background:

We notified States of their TANF MOE levels in December 1996.  However, subsequent to that issuance, the Administration for Children and Families (ACF) determined that a change in its method for calculating the Mandatory Child Care Fund allocations under section 418 of Title IV-A, as amended, was necessary.  This was explained to Child Care Lead Agency directors in a letter dated August 6, 1997.

Section 409(a)(7) requires that the TANF MOE levels be based on the State share of FY 1994 expenditures for the AFDC, Emergency Assistance, JOBS, and the former child care programs under title IV-A.  Thus, in our review of the At-Risk child care (ARCC) expenditures for purposes of recalculating the Mandatory Child Care Fund allocations, we determined that the State share of ARCC expenditures for FY 1994 that was used in determining TANF MOE levels also had to be revised for some States.

It should be noted that the change in the TANF MOE levels are solely related to changes in the State share of ARCC expenditures for FY 1994, not expenditures for AFDC/JOBS and Transitional child care.

Attachment A contains an explanation of the changes in TANF MOE levels for all fiscal years. It also contains a separate discussion regarding the FY 1997 TANF MOE levels.

Inquiries:

Inquiries should be directed to the appropriate ACF Regional Administrator.

/s/

Norman L. Thompson 
Director
Office of Program Support

Attachments A-F

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