TANF and Work: The Caseload Reduction Credit and How States Exploit It

Temporary Assistance for Needy Families (TANF) supports families as they work toward financial independence, and the policies used to measure state performance play an important role in how the program is administered. This issue brief, co-written by Office of Family Assistance Director David Swegle and Assistant Secretary of Administration for Children and Families Alex Adams, examines the TANF Caseload Reduction Credit and how it affects state work participation requirements. As the second in a series on TANF work requirements, it explains how the credit is calculated and why it was created, identifies its limitations, and examines recent legislative attempts to strengthen work requirements. TANF leaders and administrators can use this resource to better understand the relationship between caseload trends, accountability, and work participation requirements, helping them interpret program data and engage in informed policy discussions about the impact of workarounds on TANF participants’ financial independence.