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Note: TCA is an incentive to the Families First/TANF households designed to address the fiscal cliff families often encounter. TCA differs from Families First/TANF when 100% of the earned income is excluded for six months which allows the household to continue receiving cash assistance.

TCA Work Requirements/Sanctions: The AU will be monitored by the TCM during the TCA period. If the AU fails to provide proof of ongoing employment that meets the required work hours, the AU will be referred for case closure. If the AU falls below the required hours during the TCA period and fails to engage in additional activities, the cash assistance will be closed.

The customer will be eligible to receive supportive services during the TCA period. The supportive services include childcare, transportation, as well as other supportive services facilitated by the approved supportive services contractor.

Once the TCA period ends, the customer may be eligible to receive eighteen (18) months of transitional childcare.

All TCA cases will be counted in the work participation rate and will be reported as an open Families First case.

Diversion Program

Tennessee will operate a Diversion program to serve families who are not receiving the Families First/TANF cash assistance but could achieve self-sufficiency and economic security through a lump- sum payment. An Assistance Unit (AU) must meet all of the following criteria to receive a Diversion payment:

• Families First/TANF program eligibility criteria; • The Assistance Unit has demonstrated residency in Tennessee for six (6) months; • The primary caretaker has a recent job history; • The Assistance Unit does not face any major barriers to employment, such as drug/alcohol abuse; • The primary caretaker has at least a high school diploma or equivalent; and • The household is facing a one-time financial need, and the Diversion payment would prevent the ongoing need for Families First/TANF cash assistance. The funds can be used for housing, transportation, childcare, or job needs.

The Diversion payment will reduce the temporary cash assistance lifetime limit of sixty (60) months eligibility by the number of months the applicant receives a Diversion payment.

Those who accept the Diversion payment will be ineligible to receive another Diversion payment or Families First/TANF cash assistance during the diversion months of assistance. Employed Diversion recipients may be eligible for twelve (12) months of subsidized childcare.

Sanctions