TANF regulations permit the use of available TANF funds for employment in the private and public sectors, with the employer receiving a subsidy from TANF funds to offset some or all of the wages and costs of employing an individual. Subsidized employment for TANF participants has been shown in research to be an effective work activity for those with limited work history, barriers to employment, and limited success getting a job. Studies have also found that subsidized employment is a successful gateway into unsubsidized jobs and is a useful strategy for improving participant outcomes and program performance.
Connect with Your Peers and Ask a Question on Subsidized Employment.