Designed to Fit the Times: Flexible Design Elements for Subsidized Job Programs

This report comments on the effectiveness of the Temporary Assistance for Needy Families Emergency Fund (TANF EF) in creating subsidized employment and suggests more subsidized job creation to aid low-income families and weather economic downturns. Subsidized employment that offers temporary government-funded work has been widely proven to be beneficial in providing income support, increasing employment, boosting wages, and improving child support and recidivism numbers. TANF EF was particularly effective because it gave states flexibility to administer funds as they saw fit, enabling them to adapt to specific local contexts and create targeted interventions. The author calls for more subsidized employment programs with flexibility, tailored approaches based on program purpose, sustainable funding streams, and built-in triggers to adapt to changing economic conditions like recessions.