TANF Information for Funders

The federal stimulus package creates potential opportunities for foundations to invest their private funds to leverage new federal funding at a rate of $1 to $4. Yes, that is correct! Your investment of $100,000 can leverage $400,000 in federal Temporary Assistance for Needy Families (TANF) funds. This opportunity is available only through September 30, 2010, unless Congress amends the current law.

There are some conditions to make this work. This funding opportunity is for programs that serve TANF-eligible individuals. These are typically members of families with children, with income at or below 75% of the state median income. Investments must target "nonrecurrent short-term emergency benefits" or "subsidized employment" for TANF-eligible families. The non-recurrent short-term benefit programs and services must meet an emergency need and be designed to last no longer than 4 months.

A workgroup assembled by Governor Rell is exploring these federal funds leveraging opportunities and has prioritized two program areas for Connecticut funders to consider investing funds: housing stabilization and family economic stabilization.

A timeline on next steps for funders interested in leveraging TANF funds with their investments (letters of intent and commitment of future dollars) will be available very soon.