Sneak Preview: ACF Posts FAQ on Work Outcomes Reporting

(The following was excerpted from a recent Thompson Grants Compliance Expert article.) The Department of Health and Human Services (HHS) Administration for Children and Families (ACF) recently issued a frequently asked questions (FAQ) document to assist states reporting on Temporary Assistance for Needy Families (TANF) work outcome measures, as required under the Fiscal Responsibility Act of 2023 (Pub. L. 118-5).

The law requires states, in consultation with HHS, to collect and report information relating to work outcomes measures for work-eligible individuals who exit the TANF program beginning in federal fiscal year (FY) 2025. Individuals are considered to exit the program if they have not received TANF services for 90 days. ACF issued an interim final rule, which becomes effective Oct. 1, in June that implements the data collection and reporting requirements under the law. The newly issued FAQ document includes questions received by ACF that are not directly answered in the interim final rule or other existing resources.

The law specifies that to ensure nationwide comparability of data, all states must collect and submit information necessary to determine the following four indicators of performance:

• Employment rate (second quarter (Q2) after exiting TANF): The percentage of individuals who were work-eligible individuals as of the time of exit from the program, who are in unsubsidized employment during the second quarter after exiting the program;
• Employment retention rate (fourth quarter after exiting TANF): The percentage of individuals who were work-eligible individuals as of the time they exited the program who were in unsubsidized employment in the second quarter after they exited, who are also in unsubsidized employment during the fourth quarter after they exited;
• Median earnings (second quarter after exiting TANF): The median earnings of individuals who were work-eligible individuals as of the time they exited the program, who are in unsubsidized employment during the second quarter after they exited; and
• Secondary school diploma or its recognized equivalent attainment rate: The percentage of individuals who have not attained 24 years of age, are attending high school or enrolled in an equivalency program, and are work-eligible individuals or were work-eligible individuals as of the time they exited the TANF program, who obtain a high school degree or its equivalent while receiving assistance under the state TANF program or within one year after they exited.

The law requires states to submit Social Security Numbers (SSNs) of all work-eligible individuals who exit TANF in a given quarter on a quarterly basis. ACF will then match those SSNs with quarterly wage records in the National Directory of New Hires (NDNH), which is a national database of wage and employment information on most American workers administered by ACF’s Office of Child Support Services.

(The full version of this story has now been made available to all for a limited time here.)

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