ACF Launches Redesigned Welfare Pilot with Five States to Promote Work, Reduce Government Dependency, and Strengthen Families
The pilot is authorized under the Fiscal Responsibility Act of 2023 and reflects the Administration’s commitment to reshaping welfare programs to encourage employment, personal responsibility, and strong, stable two-parent families. States were encouraged to propose alternative performance measures to the work participation rate that prioritize rapid employment outcomes, earnings progression, and reduced dependency on Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Nutrition Assistance Program (SNAP) benefits, and other welfare.
The Administration for Children and Families (ACF) at the U.S. Department of Health and Human Services selected Arizona, Iowa, Nebraska, Ohio, and Virginia to participate in the redesigned TANF pilot. These states were chosen from a strong applicant pool to develop models and metrics other states can replicate to help families achieve self-sufficiency. In addition to concretely tracking employment and earnings, pilot states will pursue the following strategies to reduce dependency:
- Arizona will engage directly with employers that have vacancies for in-demand, well-paying positions to directly connect TANF participants with quality, sustainable employment.
- Iowa will improve referral coordination across services, enhance the quality of information available to TANF participants through financial literacy and decision-making tools, and build partnerships with employers to create employment and matched savings opportunities.
- Nebraska, in partnership with community organizations, colleges, and businesses, will develop personalized pathways for TANF participants to strengthen connections to local jobs. Pathways will include referrals to Nebraska’s TANF-funded Fatherhood and Healthy Marriage Initiative.
- Ohio will implement a personalized “well-being assessment” for TANF participants, which will include intensive case management services, financial literacy training, and support for counties to build community capacity.
- Virginia will establish Personalized Results Plans for TANF participants to build upon the success of the Career Pathway Pilot, which blends sector-based training, intensive case management, and employment engagement to support participants as they gain credentials in fields like health care and skilled trades.
The TANF pilot program officially launches on October 1, 2025.