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Delaware TANF State Plan 10-1-23 to 09-30-26 Page 8 of 59

3) If the income is less than the standard of need, the net income is subtracted from the applicable standard of need; the number calculated is the deficit. The deficit is multiplied by 50%; the number calculated is the remainder. The grant is either the remainder or the payment standard, whichever is less.

The TANF standards apply to all benefits and services provided to needy families except for those listed below, for which Delaware has established separate need standards. • Emergency Assistance, discussed in the section on Diversion Assistance Program; • Services for Working Families in Financial Crisis described in the additional targeted support section; • Childcare, described in the Involvement of Local Governments, the Public, and Private Sector Organizations section, the Eligibility for Assistance under the TANF Program section, and the Supportive Services section; and • Child Welfare Services.

Fill-the-Gap Budgeting

Fill-the-Gap Budgeting will be used for recipient families to determine continued eligibility and the amount of TANF benefits so that families can retain more of their income. By having a standard of need which is greater than the payment standard, a "gap" is created. The difference between the family's income and the need standard is called the deficit. The state pays a percentage of the deficit up to a maximum benefit level or payment standard.

• Three standards are used in financial eligibility calculations: o 185% of the standard of need; o the need standard; and o the payment standard.

185% of the standard of need will be used in the gross income test. The standard of need used is 75% of the federal poverty level. This includes allowances for food, clothes, utilities, personal items, and household supplies.