Senate Extends TANF, But Fails To Renew Popular, Job-Creating TANF Emergency Fund

[ProSense]

Senate Extends TANF, But Fails To Renew Popular, Job-Creating TANF Emergency Fund

For months, Republicans in the Senate have blocked an extension of the currently expired Temporary Assistance for Needy Families (TANF) Emergency Contingency Fund, a successful jobs program that has created more than 250,000 subsidized jobs for low-income workers through grants to states.

The Emergency Fund has the support of a slew of governors — with conservative darling Gov. Haley Barbour (R-MS) saying that it provided “much-needed aid during this recession by enabling businesses to hire new workers, thus enhancing the economic engines of our local communities” — but it has been sitting idle since September, causing states to terminate or greatly scale back their employment programs.

The TANF program itself is the nation’s basic welfare program, and before departing for the weekend, the Senate reauthorized TANF while leaving the Emergency Fund on the sidelines:

The bill did not revive an emergency fund, passed as part of the 2009 economic stimulus law, that enabled states to place adults with private employers and youths in summer jobs programs. That funding expired at the end of September after Republicans blocked attempts to extend it.

“This program delivers exactly what my colleagues say they want — jobs — yet time and again, they have put up a unified wall of resistance against reinstating it,” said Sen. John Kerry (D-MA). In fact, House Republicans named the expired program as one of the first things they would cut from the federal budget (saving exactly zero dollars).

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The basic TANF reauthorization was a golden opportunity to extend the Emergency Fund and get a highly effective jobs program back on its feet. Instead, Congress seems content with shrugging at nearly ten percent unemployment.

[OhioBlue]

1. I am of mixed opinion on this program

the truth is... I don't really understand it that well.

I fully support assistance for people who need it. And.. if this program has proven to fill a gap that would otherwise not be filled, then it certainly has merit.

But with this program, if we are subsidizing wages at a private employer - does that contribute to some wealth redistribution from the bottom to the top? If these private companies have positions open, would they hire anyway? Are we just giving them tax payer dollars to pay wages and turn a heftier profit? Are we creating yet another class of workers?

Again... I'm of mixed opinion. I'm not really trying to debate, but looking for other opinions on this and some insight from anyone more familiar with the program.

[ProSense]

2. Here is more information

A Jobs Program That Works

Job Subsidies Providing Help to Private Side

Stimulus Jobs on State’s Bill in Mississippi

Job Loss Looms as Part of Stimulus Act Expires

Kerry Pushes TANF Extension to Save Jobs for Working Families

[OhioBlue]

3. thank you for the links. I read them all

I do think that a temporary extension of the program would be helpful in this economy. However, I'm still not completely comfortable with the program. We are subsidizing jobs at CVS, Wal Mart and McDonalds. I absolutely don't believe that these jobs wouldn't have been open without the stimulus and see it as a form of Corporate Welfare in those instances.

Again, in this environment, I am inclined to support this program b/c it does seem to also help small businesses, non-profits and local governments hire workers and... even if people are being hired at large Corps - at least they are able to support their families - tho I suspect those jobs would have been filled anyway. Perhaps, we just have to take the good with the bad on this and recognize that Republican Governors will develop the programs (more targeted to large business) differently than Democratic Governors but that people will still be helped?