Final

Issued by: Administration for Children and Families (ACF)

Issue Date: February 17, 2010

TO:

State agencies administering the Temporary Assistance for Needy Families (TANF) program under title N-A of the Social Security Act, and other interested parties.

SUBJECT:

The U.S. Department of Labor (DOL) Employment and Training Administration's (ETA) and the Social Security Administration's (SSA) joint Disability Program Navigator (DPN) Initiative.

REFERENCES:

45 CFR 92.24(b)(1) and (3), OMB Circular A-87, Appendix A, section C1.h., 45 CFR263.6(c), 45 CFR263.11(b) PURPOSE:

This Program Instruction addresses the leveraged resource requirement for States, D.C., and Territories that have or will receive DPN funds to implement this initiative.

BACKGROUND:

DOL and SSA jointly fund the DPN initiative. This initiative helps Social Security beneficiaries and other people with disabilities "navigate" through the challenges of seeking work, by providing information, training, and other employment-related services at the One-Stop Career Centers established under the Workforce Investment Act of 1998. This initiative also enables states to hire a disability resource specialist or "navigator" to work in the One-Stop Career Center system. Essentially, the navigator serves as an expert on workforce development issues and policies impacting individuals with disabilities who are seeking employment, skill development, job retention assistance, or career advancement through the One-Stop Career Center system. The navigator also develops relationships with employers to facilitate job placement for persons with disabilities.

Currently, 43 States plus the District of Columbia, Puerto Rico, Guam, and the United States Virgin Islands have entered into a cooperative agreement to implement this initiative. The cooperative agreement requires the grantee "to provide leveraged resources totaling 10 percent of the total DPN Federal funds awarded. States can elect to use other Federal funds, other public funds (State, local), private funds, or utilize in-kind services to meet this leveraged resource requirement."

POLICY:

A leveraging requirement is a cost-sharing requirement. An important Federal appropriation principle, which is expressed in OMB Circular A-87 (2 CFR Part 225) and 45 CFR 92.24(b)(1) and (3) (the uniform administrative rules applicable to the TANF program), is that neither Federal funds nor the nonfederal share of one Federal program may be used by a grantee to meet the match or cost-sharing requirement of another Federal program unless specifically authorized by Federal law.

Unfortunately, there is no Federal law that expressly authorizes the use of Federal funds from another Federal program or nonfederal funds that have been or will be used to meet the cost-sharing requirement of that program, to help meet the DPN leveraging requirement. Therefore, States (including the Territories and the District of Columbia) that have received or will receive DPN funds may not use Federal TANF funds or any nonfederal funds that have been or will be claimed toward the State's maintenance-of-effort (MOE) requirement to help meet the DPN leveraged resource requirement.

As a general matter, States may use both Federal TANF and State MOE funds in any manner that is reasonably calculated to accomplish one or more of the purposes ofthe TANF program listed below, unless a prohibition, restriction, or limitation applies.

1. To provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives;
2. To end the dependence ofneedy parents on government benefits by promoting job preparation, work, and marriage;
3. To prevent and reduce the incidence of out-of-wedlock pregnancies; and
4. To encourage the formation and maintenance oftwo-parent families.

DPN activities are reasonably calculated to accomplish a purpose of the TANF program. Therefore, a State may use Federal TANF or State MOE funds to pay an allocable portion ofthe cost of a DPN activity, as long as none ofthe expenditures are used to meet the DPN leveraged resource requirement.

EFFECTIVE DATE:

If any State, D.C., or Territory (States) incurs a penalty, because it has receivedDPNfunds duringFY20I0orpriorfiscal years andused Federal TANF and/or State MOE funds to help meet the leveraged resource requirement, we will consider a request for a reasonable cause exception in accordance with 45 CFR § 262.5. States must cease this action immediately. It is not an appropriate use of Federal TANF or State MOE funds.

INQUIRIES:

Please direct any inquiries to the appropriate Regional TANF Program Manager.

 

/s/
Ann H. Barbagallo
Acting Director
Office of Family Assistance

DISCLAIMER: The contents of this database lack the force and effect of law, except as authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically incorporated into a contract. The Department may not cite, use, or rely on any guidance that is not posted on the guidance repository, except to establish historical facts.