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Maintenance of Effort Nebraska receives approximately $56.6 million a year in TANF Block Grant from the Administration of Children and Families. The state is required to meet maintenance of effort (MOE) which is based on 1995 spending levels for cash assistance and work programs. To meet the MOE obligation, a state must report spending an amount equal to at least 80% of its historical spending level; this minimum share falls to 75% for any year in which a state meets its TANF work participation rate requirement. In Nebraska the MOE is approximately $28.4 million. The state must meet all federal requirements or may be subjected to a dollar-for-dollar reduction below the required MOE. The chart below shows MOE from FFY21 to FFY24:

During the four federal fiscal years, the Earned Income Tax Credit (EITC) and the child care tax credit were 69%, 76%, 87%, and 87% of the MOE. State expenditures in Department of Health and Human Services (DHHS) programs alone do not meet the MOE. Aid to Dependent Children Aid to Dependent Children (ADC) is a TANF funded program that provides temporary direct cash assistance to low-income families with children 18 or younger. ADC families where the parent(s) are capable of attaining independence are limited to receiving 60 months of cash assistance in a lifetime. All ADC adults who are able must participate in the Employment First program. ADC income is used to pay for family living expenses like rent, utilities, food, clothing, and other necessities. The calculation of ADC payments by DHHS is restricted based on Nebraska Revised Statutes § 43-512 and 43-513. These statutes define the Standard of Need for ADC recipients and restrict the monthly payment amount to 55% of such standard. Per state statute, the Standard of Need is adjusted every two years based on the rate of growth of the Consumer Price Index for the previous calendar years. As of July 1, 2023 the Standard of Need is $843 for a two- person family and $160 for each additional person in the family unit. In order to qualify for ADC payments, the family unit’s income must be below the Standard of Need for their unit size. Based on the current restriction of payments to 55% of the Standard of Need, the current maximum monthly payment is $464 for a family of two. For a family of four, the Standard of Need is $1,163 and the maximum monthly payment is $640. If a family unit’s income increases above the Standard of Need but below 185% of the federal poverty level for their unit size, the family remains eligible for five months of transitional ADC grants. MOE Programs FFY2021 FFY2022 FFY2023 FFY2024 Basic Assistance 6,063,139

4,843,588

4,223,023

4,134,220

Work Activities 7,455

5,949

11,166

33,398

Child Care 6,498,998

6,498,998

(359,650)

Earned Income Tax Credit 26,771,871

31,265,223

24,875,619

27,549,297

Child Care Tax Credit 2,350,584

5,407,917

1,890,275

1,569,767

Emergency Assistance 293

-

3,976

-

Services for Children and Youth [Lifespan Respite] 363,629

278,869

267,574

280,083

Total 42,055,970

48,300,544

30,911,983

33,566,765

HHS Programs 12,933,514

11,627,404

4,146,089

4,447,701

Tax Credits 29,122,455

36,673,140

26,765,894

29,119,064