Does Tanf Offer Daycare Services?

The Temporary Assistance for Needy Families (TANF) program, enacted in 1996, is a federally funded, state-administered financial assistance program for low-income families. It replaces Aid to Families with Dependent Children (AFDC), which provides cash assistance to disadvantaged families. A state can transfer up to 30% of its TANF funds to the Child Care and Development Block Grant (CCDBG), which provides child care assistance for disadvantaged families. TANF funding can also be used for work-related activities such as education and training, child welfare, and child care preparation.

The TANF program is one of the country’s largest funding streams for child care, supporting low-income families through increased access to child care and early education opportunities. Nearly one-third of child care subsidy funding comes from TANF, but TANF dollars that are spent directly on child care and not transferred are not considered child care subsidy funds.

States use TANF to fund monthly cash assistance payments to low-income families with children, as well as a wide range of services. TANF and child care assistance should work together to ensure families can meet their basic needs while providing parents with a path to work. They can transfer up to 30% of their TANF funds to the CCDBG or provide child care support directly from state programs managing TANF cash assistance.

Eligibility for TANF cash assistance is time limited, and there is also assistance with child care costs available to families who qualify.