Fort Wayne Journal Gazette
We hope state Sen. Jon Ford’s persistence will finally pay off for low-income Hoosier families. The Terre Haute Republican’s bill to reset the income eligibility requirements for the Temporary Assistance for Needy Families program received its second reading Jan. 26 after clearing its committee on Jan. 23.
Ford has championed this TANF revamp since 2019. Last year’s bill passed the Senate 43-5, only to die in the House.
States individually determine income and benefit levels for the $206 million the state annually receives from a federal block grant established in 1996 as a replacement for Aid to Families with Dependent Children.
Due to the state’s restrictive policies, some of the poorest families don’t qualify for TANF, which is limited to recipients with household income, based on size, at no more than 17% of the federal poverty level.
Ford’s bill would raise income eligibility to 35% of the annual federal poverty level in 2026 and 50% by 2028. About 600 additional families would now be eligible. In a count last March, Indiana had more than 9,000 people receiving TANF funds – more than 8,000 were children.
If passed, the bill would increase the benefit to $248 per month for a child, up from $155 per month. Each additional child would receive $104, up from $65. Benefits will be indexed to inflation.
The small amount of cash TANF provides to families in poverty allows them to pay for necessities not covered by SNAP benefits (formerly known as food stamps) – diapers, toilet paper and other personal hygiene items. It can also be used for case management services – including education and training – to help families climb out of poverty.
Compared to the rest of the country, Indiana has one of the nation’s lowest TANF-to-poverty ratios, spending less than 5% on direct assistance, well below the national average of 22.3%, according to a Congressional Research Service report from December. However, Indiana spends most of its federal TANF grant on in-direct support such as child care, services and benefits at rates well above the national average.
How much will this cost Hoosiers? Nothing, as the state would use unspent funds to pay for administration costs. According to the Legislative Services Agency, Indiana has $54.4 million in unspent aid.
Ford’s efforts are commendable, as inflation and the unraveling of COVID-related relief are hitting financially distressed families hard. And for Hoosiers, this is a much-needed long-term solution for a program that provides important temporary relief.