TANF: A Guide to the New Definitions of What Counts as Work Participation
CRS Report for Congress
TANF: A Guide to the New Definitions of
What Counts as Work Participation
Gene Falk
Specialist in Social Legislation
Domestic Social Policy Division
Summary
The Deficit Reduction Act of 2005 (DRA, P.L. 109-171) included changes to work
participation standards under the Temporary Assistance for Needy Families (TANF)
block grant that seek to increase the share of the cash welfare caseload engaged in work
or job preparation activities. The law also required the Department of Health and
Human Services (HHS) to issue regulations defining TANF work activities to ensure a
consistent measurement of work activity across states. Highlights of the regulations
(published June 29, 2006) include requiring all activities to be supervised (many on a
daily basis); disallowing four-year or advanced college degrees to count as vocational
educational training; and explicitly allowing treatment for the removal of certain barriers
to employment, such as substance abuse and mental or physical disability to count
toward the participation standards, though for a limited period each year as a “job
readiness” activity. It also allows “supported employment” for individuals with
disabilities to count. Additionally, the definition of job skills training directly related
to employment appears to allow a wide range of training and educational activities. This
report will be updated as warranted.
TANF law lists 12 categories of work activities that recipients of assistance may
engage in and be counted toward its work participation standards. The 12 listed
categories are (1) unsubsidized employment; (2) subsidized private sector employment;
(3) subsidized public sector employment; (4) work experience; (5) on-the-job training; (6)
job search and job readiness assistance; (7) community services programs; (8) vocational
educational training; (9) job skills training directly related to employment; (10) education
directly related to employment (for those without a high school degree or equivalent); (11)
satisfactory attendance at a secondary school; and (12) provision of child care to a
participant of a community service program.
Congressional Research Service ˜ The Library of Congress
Under prior HHS regulations, states were allowed to define the specific activities
included in each of these federal categories.1 However, DRA required HHS to issue
regulations by June 30, 2006, to define TANF work activities to ensure consistent
measurement of work. The regulations, published as interim final regulations on June 29,
2006,2 provide definitions for each of 12 federal categories of work activities listed in the
law, with the explanatory preamble providing specific examples of activities that can or
cannot be counted within these categories. This report pulls together the official
definition of each of the 12 categories (as stated in the regulatory text) with the
information in the preamble that provides a more detailed description of what activities
may, and what activities may not, be counted within each of the categories.
Unsubsidized Employment
Official Definition. “Unsubsidized employment means full- or part-time
employment in the public or private sector that is not subsidized by TANF or any other
public program.”
Example of What Counts. Employment not directly subsidized by TANF or
other public funds counts. However, it includes employment where employers claim a
tax credit for hiring disadvantaged workers. It also includes self-employment.
Example of What Does Not Count. If a recipient is in a job where the employer
receives a “direct subsidy” from public funds (other than tax credits, discussed above),
the recipient is considered in subsidized employment.
Subsidized Private Sector Employment
Official Definition. “Subsidized Private Sector Employment means employment
in the private sector for which the employer receives a subsidy from TANF or other public
funds to offset some or all of the wages and costs of employing a recipient.”
Examples of What Counts. Participation on a job where the employer receives
a subsidy and the participant is paid wages and receives the same benefits as unsubsidized
employees who perform similar work. Examples include a job where (1) TANF funds
that would otherwise be paid as benefits instead reimburse some or all of the employer’s
costs for wages, benefits, taxes, and insurance; and (2) a third-party (e.g., nonprofit
organization) acts as a temporary staffing agency and is paid a fee from TANF to cover
the participant’s salary and support services. It also includes “supported employment”
programs under the Rehabilitation Act of 1973 for individuals with disabilities.
Examples of What Does Not Count. Employer’s receipt of subsidies through
the tax code does not make a job “subsidized employment.” Such jobs should be counted
as “unsubsidized employment.”
1 See Definition of TANF Work Activities, by Gene Falk, May 30, 2006. This CRS memorandum
is available upon request.
2 See Federal Register, Vol. 71, No. 125, June 29, 2006. pp. 37454-37483. HHS will accept
comments on the regulations through August 28, 2006.
Subsidized Public Sector Employment
Official Definition. “Subsidized Public Sector Employment means employment
in the public sector for which the employer receives a subsidy from TANF or other public
funds to offset some or all of the wages and costs of employing a recipient.”
Examples of What Counts. See the discussion of “Subsidized Private Sector
Employment,” above.
Example of What Does Not Count. See the discussion of “Subsidized Private
Sector Employment,” above.
Work Experience
Official Definition. “Work experience (including work associated with the
refurbishing of publicly assisted housing) if sufficient private sector employment is not
available means a work activity, performed in return for welfare, that provides an
individual with an opportunity to acquire the general skills, training, knowledge, and work
habits necessary to obtain employment. The purpose of work experience is to improve
the employability of those who cannot find unsubsidized employment. The activity must
be supervised by an employer, work site sponsor, or other responsible party on an ongoing
basis and no less frequently than daily.”
Example of What Counts. Activity is sometimes called “workfare” because the
activity is performed in return for the TANF grant and employees do not receive wages3
or compensation.
Examples of What Does Not Count. Activities such as job search, job
readiness activities, and vocational education.
On-The-Job Training
Official Definition. “On the job training means training in the public or private
sector that is given to a paid employee while he or she is engaged in productive work and
that provides knowledge and skills essential to the full and adequate performance of the
job. On the job training must be supervised by an employer, work site sponsor, or other
responsible party on an ongoing basis no less frequently than daily.”
Example of What Counts. For this activity, states subsidize the costs of training
(as opposed to wages and benefits) provided to the participant, and there is an expectation
that the participant will become a regular, unsubsidized employee. For individuals with
disabilities who are in “supported employment,” the activity may be considered on-the-job
training if it includes significant on-site training.
3 However, if the work experience participant is considered an employee under the Fair Labor
Standards Act, hours in work experience are limited by dividing the TANF grant (and sometimes
the food stamp grant) by the minimum wage.
Example of What Does Not Count. “Supported employment” that does not
include significant on-site training should be counted as “subsidized employment” rather
than on-the-job training.
Job Search and Readiness
Official Definition. “Job search and job readiness means the act of seeking or
obtaining employment, preparation to seek or obtain employment, including life skills
training, and substance abuse treatment, mental health treatment, or rehabilitation
activities for those who are otherwise employable. Such treatment or therapy must be
determined to be necessary and certified by a qualified medical or mental health
professional. Job search and job readiness assistance activities must be supervised by the
TANF agency or other responsible party on an ongoing basis no less frequently than
daily.” Note: Participation in this activity may be counted for six weeks (12 weeks in
certain circumstances) in a fiscal year.
Examples of What Counts. Job search includes making contacts with employers
(in person, via telephone, etc.) to learn of suitable job openings, applying for vacancies,
and interviewing for jobs. Job readiness basically comprises two types of activities: (1)
preparation necessary to begin a job search, such as preparing a resume or job application,
training in interviewing skills, and training in workplace expectation and life skills; and
(2) activities to remove barriers to employment, such as substance abuse treatment, mental
health treatment, or rehabilitation activities.
Examples of What Does Not Count. Activities that do not involve seeking or
preparing for work — such as activities associated with children’s dental checkups,
immunization, and school attendance — do not count; parenting skills training or
participation in Head Start (though being a Head Start volunteer may be considered
community service; see below); recovery periods from illness; and activities to promote
a healthier lifestyle, such as smoking cessation. English as a Second Language (ESL) is
not countable as job readiness, but counts as either job skills training or education directly
related to employment (see below).
Community Service Programs
Official Definition. “Community service programs means structured programs
and embedded activities in which TANF recipients perform work for the direct benefit of
the community under the auspices of public or nonprofit organizations. Community
service programs must be limited to projects that serve a useful community purpose in
fields such as health, social service, environmental protection, education, urban and rural
redevelopment, welfare, recreation, public facilities, public safety, and child care.
Community service programs are designed to improve the employability of recipients not
otherwise able to obtain employment, and must be supervised on an ongoing basis no less
frequently than daily. A State agency shall take into account, to the extent possible, the
prior training, experience, and skills of a recipient in making appropriate community
service assignments.”
Examples of What Counts. Examples include work in a school, such as serving
as a teacher’s aide; helping as a parent volunteer in a Head Start program; work performed
in a church, such as preparing meals for the needy; and participation in Americorps,
Volunteers in Service to America (VISTA), or private volunteer organizations.
Examples of What Does Not Count. Community service does not include
participation in educational activities, substance abuse treatment programs, mental health
and family violence counseling, life skills classes, job readiness instruction, or caring for
a disabled family member; nor does community service include unstructured or
unsupervised activities such as shoveling a neighbor’s sidewalk or helping with errands,
or serving as a foster parent.
Vocational Educational Training
Official Definition. “Vocational educational training (not to exceed 12 months
with respect to any individual) means organized educational programs that are directly
related to the preparation of individuals for employment in current or emerging
occupations requiring training other than a baccalaureate or advanced degree. Vocational
educational training must be supervised on an ongoing basis no less frequently than
daily.”
Examples of What Counts. Programs that prepare an individual for a specific
trade, occupation, or vocation count. These may be provided by educational or training
organizations, including vocational-technical schools, community colleges, post-
secondary institutions, nonprofit organizations, and secondary schools that offer
vocational education. Hours in monitored study sessions structured by the state count as
vocational educational training.
Examples of What Does Not Count. Programs leading to a baccalaureate
(four-year) degree or advanced degree. Also not countable are general basic skills
programs and language training (except as mentioned above), substance abuse counseling
and treatment, mental health services, and other rehabilitative activities. Programs
leading to a high school degree should be counted instead under satisfactory attendance
at a secondary school (see below). Unstructured and supervised homework and study
time do not count as hours in vocational educational training.
Job Skills Training Directly Related to Employment
Official Definition. “Job skills training directly related to employment means
training or education for job skills required by an employer to provide an individual with
the ability to obtain employment or to advance or adapt to the changing demands of the
workplace. Job skills training directly related to employment must be supervised on an
ongoing basis no less frequently than daily.”
Examples of What Counts. Customized training to meet the skills of a specific
employer or general training that prepares an individual for employment. This includes
literacy and language instruction if the training is explicitly focused on skills needed for
employment, or if the instruction is combined with job training.
Examples of What Does Not Count. Barrier removal activities like substance
abuse counseling or treatment, mental health services, and rehabilitative services count.
Education Directly Related to Employment
Official Definition. “Education directly related to employment, in the case of a
recipient who has not received a high school diploma or a certificate of high school
equivalency means education related to a specific occupation, job, or job offer. Education
directly related to employment must be supervised on an ongoing basis no less frequently
than daily.”
Examples of What Counts. Examples include adult basic education, ESL, and,
where needed for employment by employers or occupations, programs leading to a
General Educational Development (GED) or High School Equivalency diploma. Hours
in monitored study sessions in the course of these programs would count as education
directly related to employment.
Examples of What Does Not Count. Education unrelated to specific
occupations and unsupervised hours of homework do not count.
Satisfactory Attendance at a Secondary School
Official Definition. “Satisfactory attendance at secondary school or in a course
of study leading to a certificate of general equivalence, in the case of a recipient who
has not completed secondary school or received such a certificate means regular
attendance, in accordance with the requirements of the secondary school or course of
study, at a secondary school or in a course of study leading to a certificate of general
equivalence, in the case of a recipient who has not completed secondary school or
received such a certificate. This activity must be supervised on an ongoing basis no less
frequently than daily.”
Example of What Counts. Regular attendance at a secondary school (an activity
primarily targeted to minor parents) or GED programs counts. This activity is not
restricted to education needed for employment. Hours in monitored study count.
Example of What Does Not Count. Unsupervised hours of homework.
Providing Child Care Services
to a Community Service Participant
Official Definition. “Providing child care services to an individual who is
participating in a community service program means providing child care to enable
another TANF recipient to participate in a community services program. This activity
must be supervised on an ongoing basis no less frequently than daily.”
Examples of What Counts. No further examples are offered.
Examples of What Does Not Count. Providing child care to a TANF recipient
who participates in activities other than community service does not count.