Given the severe revenue shortfalls faced by many states as a result of the recession, many states are re-evaluating their use of TANF and MOE funds. In some cases, they are substituting TANF funds for state funds that had previously been provided to nonprofits. In other cases, they are claiming existing expenditures towards the MOE requirement, often for the first time. Still others are asking localities or nonprofits for permission to claim their expenditures towards the MOE requirement, as allowed by federal law. All of these choices have implications for allowable activities and populations.

This brief by Elizabeth Lower-Basch draws attention to these issues.