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8 7. Supplemental Funding In addition to the annual TANF Block Grant, states may be eligible to receive a portion of the TANF Contingency Fund. The TANF Contingency Fund provides funding for states to provide benefits and services to needy families in times of economic downturns. A state may receive 1/12 of 20 percent of its annual block grant for each month that it qualifies as an "eligible state." If the State qualifies for the TANF Contingency Fund for the full fiscal year, such expenditures are multiplied by the State's Medicaid match rate to determine the amount that the State may keep. However, if the State is eligible for less than the entire year, the match rate is reduced by the fraction of the year that the State qualified as an "eligible state." Thus, a state may receive up to 20 percent of its TANF Block Grant if eligible for an entire year. To qualify for and expend TANF contingency funds, States must spend Maintenance of Effort (MOE) State dollars that equal 100% of the State's share of the FFY 1994 expenditures under the Aid to Families with Dependent Children (AFDC) and Job Opportunities and Basic Skills (JOBS) programs (i.e., pre-TANF), and meet one of two "needy state" triggers:

1. High Unemployment Rate: An unemployment rate for a 3-month period that is at least 6.5 percent and 100 percent of the rate for the corresponding period in either of the two preceding calendar years; or 2. High Supplemental Nutrition Assistance Program (SNAP) Caseloads: A SNAP (formerly known as Food Stamps) caseload that is 10 percent over the FY 1994-1995 level (adjusted for the impact of the 1995 welfare reform law's immigrant and Food Stamp provisions on the Food Stamp caseload).

Due to the MOE State expenditure requirement and available federal TANF reserve, the Department did not apply for the FFY 2024 TANF Contingency Funds.

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