Which states changed TANF benefits or eligibility rules in 2022 affecting per-capita spending?
Executive summary
Between July 2022 and July 2023, at least ten states enacted legislative or administrative increases to TANF cash grants, including large moves in Kentucky (doubling its grant from $262 to $524) and Montana (raising its grant from $588 to $725), which changed the distribution of per‑capita TANF spending across states [1]. Federal FY2022 financial data show combined TANF and state MOE spending totaled $31.3 billion and that only about 23 percent of funds went to basic cash assistance—changes in state grant rules and shifting use of TANF dollars both affect measured per‑capita assistance [2] [3].
1. States that raised grants in 2022–23 — who moved the needle
A prominent public analysis from the Center on Budget and Policy Priorities documents that ten states took actions to increase TANF cash grant levels between July 1, 2022 and July 1, 2023; the CBPP highlights Kentucky’s administrative doubling of its benefit from $262 to $524 and Montana’s $137 increase from $588 to $725 as examples of large, direct increases in benefit levels [1]. CBPP’s tally is the clearest listing in the available reporting of specific state actions that raise per‑recipient cash benefits [1].
2. Big picture: block grants, frozen federal dollars, and per‑capita math
TANF is a federal block grant that has been static in nominal terms for decades; national analyses note the block grant lost about 46 percent of its value to inflation between 1997 and 2022, and combined federal and state TANF/MOE expenditures were about $31.3 billion in FY2022—figures that shape how much states can pay per person and explain wide inter‑state differences in per‑capita spending [3] [2]. Because states set eligibility and benefit rules and can redirect funds among allowable categories, increases in one state’s grant schedule or eligibility standards directly alter that state’s per‑capita assistance and can change national per‑capita patterns [4] [5].
3. Shifts in spending priorities reduced cash assistance’s share
Federal reporting and GAO analysis show a long‑term shift away from cash “assistance” toward “non‑assistance” services; from FY2015 to FY2022, the share spent on non‑assistance rose (40.8% to 44.2%), while assistance—including cash payments—fell as a percentage of total TANF spending (27.2% to 25.2%). That reallocation means even if per‑capita TANF dollars (total spending divided by population) stay similar, the cash benefit per recipient can fall unless states explicitly increase grants [6] [7].
4. Which policy levers change per‑capita spending and eligibility
States affect per‑capita TANF spending via at least three levers reported in sources: raising maximum monthly grants or indexing benefits to inflation (several states have automatic adjustments or recent legislative increases) [8] [1]; changing financial eligibility rules such as income or asset tests (CRS and Welfare Rules Databook note states set income thresholds and some states eliminated asset tests by July 2022) [4] [9]; and shifting how much of total TANF/MOE funding is used for basic assistance versus other services, transfers, or carryforward balances [6] [7].
5. Examples beyond grant increases: eligibility and time limit changes
The Welfare Rules Databook and related state profiles document wide differences in eligibility thresholds (e.g., initial earnings eligibility for a family of three ranged dramatically) and state policy choices such as time limits and asset tests; these rules determine caseload size and therefore affect per‑capita expenditure measures even without changing nominal grant amounts [9] [10]. For instance, some states extended or relaxed time limits and some eliminated asset tests by July 2022, which can increase caseloads or change who receives cash aid [10] [4].
6. Data sources and limits: what the records show — and what they don’t
Primary federal data for FY2022 and the Welfare Rules Databook capture policies in effect on July 1, 2022 and FY2022 spending by category; CBPP provides an updated list of states that increased grants through July 2023 [9] [2] [1]. Available sources do not list a comprehensive, state‑by‑state catalogue of every 2022 rule change that altered per‑capita TANF spending in a single table—researchers must combine the Welfare Rules Databook, ACF spending tables, and policy briefs like CBPP’s to identify specific state actions [9] [2] [1].
7. Competing interpretations and implicit agendas in reporting
Policy advocates (e.g., CBPP, hope/academic briefs) frame state increases as necessary to restore purchasing power after inflation and as evidence of growing state responsibility for adequacy [1] [8]. Oversight reports (GAO) emphasize monitoring challenges as states reallocate funds and accumulate unspent balances—highlighting concerns about transparency and whether funds reach needy families [6] [7]. Each source’s perspective reflects an implicit agenda: advocacy for benefit adequacy versus oversight for fiscal accountability [1] [6].
8. Bottom line for readers tracking per‑capita changes
Concrete state actions in 2022–23 — such as the ten grant increases documented by CBPP (including Kentucky and Montana) — changed the cash assistance landscape and thus per‑capita measures in those states [1]. Broader national trends—static federal block grants, shifting spending to non‑assistance categories, and divergent state eligibility rules—mean per‑capita TANF spending is driven as much by policy choices and accounting decisions as by raw federal totals [3] [6] [4].