A final 2024 letter from our Chief Executive Officer, Lydia McCoy.
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CCLP testifies in support of TANF grant rule change
CCLP’s Emeritus Advisor, Chaer Robert, provided written testimony in support of the Colorado Department of Human Services (CDHS) rule on the cost-of-living adjustment (COLA) increase for TANF recipients, at CDHS’s Board Meeting on April 5, 2024. The proposed rule, with the required increased, is scheduled to be voted on at CDHS’s next Board Meeting on May 3, 2024. If adopted, the cost of living increase would go into effect on July 1, 2024.
Dear Members,
Colorado Center on Law and Policy (CCLP) worked hard to pass HB22-1259, Modifications to Colorado Works Program. We support this rule change increasing the Temporary Assistance to Needy Families (TANF) grant based on the formula spelled out in the bill – two percent above the previous year’s grant or the average of the last three years’ Social Security cost-of-living adjustment (COLA), whichever is greater.
When Aid to Families with Dependent Children (AFDC) became TANF in 1996, the grant for one caregiver and two children was $356 per month, or 33% of the Federal Poverty Level (FPL) at that time. If the Colorado TANF grant kept pace with national inflation, it would be at $702.33 as of February of this year, based on Bureau of Labor Statistics. Unfortunately, the value of the monthly TANF grant has eroded.
This proposed rule would raise monthly basic cash assistance from $559 to $592, an increase of $33, for one caregiver and two kids. This represents 28% of the FPL, far below what the U.S. Census considers extreme poverty – 50% of the FPL. It also equals about eight percent of what a family of one adult and two children, one preschooler and one school age, needs in metro Denver to be able to meet basic needs without public or private supports based on the 2022 Colorado Self-Sufficiency Standard.
Inflation has also eroded the value of the federal TANF block grant since 1996. That is why our sponsors – Senator Dominick Moreno and Representative Monica Duran – and advocates fought hard to add funding for the bill’s provisions.
- For the first time since TANF was created, the bill authorized and projected using up to $15 million in the state’s General Fund per year to fund provisions of the bill.
- Representative Duran was able to shepherd $21.5 million in the American Rescue Plan Act (ARPA) funding to provide transitional costs of the bill.
- Use of all TANF money – including current year block grant and county and state reserves – could be tapped to fund the bill. Counties were not required to add any non-TANF dollars, but were required to use reserves of TANF funds, and required TANF match maintenance of effort (MOE) funding. The state is required to backfill county TANF reserves if they fall below 15% of the annual block grant amount.
- The Joint Budget Committee was authorized to use unclaimed property funds to meet any shortfall that occurred in years where state revenues fell below the TABOR cap.
This rule is required by HB22-1259 and reflects the basic purpose of TANF.
Please support this rule change.
Sincerely,
Chaer Robert
Emeritus Advisor
Colorado Center on Law and Policy