To: The United States Senate
Members of the Senate Finance Committee: Support H.R.2842--Accelerating Individuals into the Work...
This bill amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to require the Administration for Children & Families (ACF) to make grants to states for demonstration projects that provide wage subsidies to enable low-income individuals to enter and retain employment.
States may use grant funds to subsidize an individual's wages for up to 12 months. The subsidy may be up to 50% of an individual's wages. Individuals are eligible for subsidized wages if they: (1) are recipients of TANF or similar state assistance or a noncustodial parent of a child receiving such assistance, (2) are unemployed when the subsidy begins, and (3) have an income below 200% of the poverty line.
States may use grant funds to subsidize an individual's wages for up to 12 months. The subsidy may be up to 50% of an individual's wages. Individuals are eligible for subsidized wages if they: (1) are recipients of TANF or similar state assistance or a noncustodial parent of a child receiving such assistance, (2) are unemployed when the subsidy begins, and (3) have an income below 200% of the poverty line.
Why is this important?
Most TANF participants face multiple barriers to employment. Few (15 percent) of those with multiple barriers get jobs, while over 60 percent of those with no barriers gain employment.
Work readiness (poor mental or physical health, education less than high school, lack of recent work experience, and lack of English-language proficiency) is a major impediment to employment. Two additional factors include having a young child and having a handicapped child. Other barriers include lack of child care for preschool children and those whose parents work at night, lack of before-after-school care, absence of employment opportunities in the community, mental and physical abuse, substance abuse, and care-giving responsibility for aged or handicapped relatives.
Work readiness (poor mental or physical health, education less than high school, lack of recent work experience, and lack of English-language proficiency) is a major impediment to employment. Two additional factors include having a young child and having a handicapped child. Other barriers include lack of child care for preschool children and those whose parents work at night, lack of before-after-school care, absence of employment opportunities in the community, mental and physical abuse, substance abuse, and care-giving responsibility for aged or handicapped relatives.