State Policies on Immigrant Eligibility for Temporary Assistance for Needy Families (TANF)

Publication Date: April 2004

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Population and demographics

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Abstract:

The eligibility of immigrants for major public assistance programs is an ongoing issue in Congress. Prior to 1996, immigrants, i.e., legal permanent residents (LPRs), were eligible for federal public assistance under terms comparable to citizens, and states were not permitted to restrict access to federal programs on the basis of immigration status. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) -- the original law authorizing the Temporary Assistance for Needy Families (TANF) program -- dramatically changed noncitizen eligibility for public assistance. It restricted the eligibility of LPRs, refugees, asylees, and other noncitizens for all means-tested public aid. Aliens in the United States without authorization, commonly referred to as "illegal aliens," remained ineligible for federal public assistance. As Congress considers the reauthorization of the welfare reform law, the issue of state options to restrict or expand assistance to immigrants arises.

The 1996 welfare reform act gave states several options of placing further restrictions on noncitizen eligibility or of expanding benefits to noncitizens. LPRs who entered the United States after August 22, 1996, are barred from TANF for five years, after which their coverage becomes a state option. This five-year bar, however, does not apply to LPRs who entered the United States as refugees and asylees. Refugees and asylees who meet the other program criteria are eligible for TANF for the first five years they are in the United States. After this period of time, refugees and asylees are only eligible for TANF at state option.

Many states have been exercising one or more of these options to extend coverage to certain classes of LPRs. As of December 2002, 34 states reported that they are exercising the option to provide TANF to LPRs after the five-year bar ends. Thirty-five states reported that they have exercised the option to provide TANF to LPRs present in the United States before August 1996. Furthermore, 34 states reported that they provide TANF to asylees and refugees who were residing in the United States at the time of the welfare reform act's passage in 1996. Only 27 states, however, reported that they provide TANF to asylees and refugees who have surpassed the five-year limit for TANF.

In terms of funding, 27 states and Washington, D.C. reported that they used their own funds as well as federal funds in 2000 and 2002 to cover the costs of providing TANF to those LPRs who were in the United States prior to the passage of the 1996 welfare reform act. An important source of funding for state assistance to noncitizens comes from the TANF "maintenance of effort" (MOE) requirement. In 2002, 17 states reported using their state MOE money to provide public assistance to newly arriving LPRs who are barred from federal TANF for the first five years. Six states reported using their state MOE money in 2002 to provide TANF to LPRs who had exhausted their eligibility or were currently barred. Eight states reported contributing their state MOE money in 2002 to a separate program for those LPRs who were excluded or whose eligibility had expired. This report may be updated if new data become available.