The 1996 Welfare Law and Changes to Date Replacement of AFDC by Temporary Assistance for Needy Families TANF is a fixed block grant for state-designed programs of time-limited and work-conditioned aid to families with children. Enacted on August 22, 1996 (P. L. 104-193), it repealed AFDC, Emergency Assistance for Needy Families, and the Job Opportunities and Basic Skills Training (JOBS) program and replaced them with TANF. It combines previous funding levels for the three programs into a single block ($ 16.5 billion annually through FY2002) and entitles each state to a fixed annual sum based on pre-TANF funding. It also provides an average of $2.3 billion annually in a new child care block grant. The law appropriates extra funds for loans, contingencies, bonuses for "high performance" and for reducing out-of wedlock births, and supplemental grants for states with historically low federal welfare funding per poor person and/ or rapid population gain. As amended in 1997 (P. L. 105-33), TANF law also provided a $3 billion program in FY1998-FY1999 for welfare-to- work (WtW) grants, most of which required state cost sharing, to help states achieve required work participation rates TANF greatly enlarged state discretion in operating family welfare, and it ended the benefit entitlement of individual families. States decide what kinds of needy families to help and whether to adopt financial rewards for work. TANF explicitly allows states to administer benefits and provide services through contracts/ vouchers with charitable, religious, or private organizations, a provision widely called Charitable Choice. Attached to the TANF block grant are some federal conditions. States must achieve minimum work participation rates and maintain at least 75% of their "historic" level of state welfare funding, increased to 80% if the state fails the work participation rate. States must require parents and other caretaker recipients to engage in state-defined "work" after a maximum of 24 months of benefits and must impose a general 5-year time limit on federally-funded ongoing basic benefits. They may exempt single parents with a child under age 1 from required work (and from the calculation of work participation rates). In FY2002, 50% of all families with an adult recipient must work (including 90% of families with two parents); these rates are lowered for caseload declines from FY1995 levels. States are forbidden to give TANF aid to unwed parents under 18 unless they live under adult supervision, and, if high school dropouts, attend school. States may continue reforms begun under waivers from AFDC rules even if terms are inconsistent with the new law. (For TANF provisions, as compared to AFDC, see CRS Report 96-720.)