FR 2025-00537

The document at hand pertains to the withdrawal of a proposed rule by the Administration for Children and Families (ACF) under the Department of Health and Human Services (HHS) related to the Temporary Assistance for Needy Families (TANF) program. This proposed rule, initially published on October 2, 2023, aimed to make significant amendments to the TANF regulations with the intention of bolstering the program as a safety net while reducing the administrative burden involved in its operation.

General Summary

Originally, the rule was set to make several adjustments to TANF regulations. Key among these changes was establishing clearer definitions for terms such as "needy," refining the understanding of costs that are "reasonably calculated to accomplish a TANF purpose," and excluding certain types of donations as allowable expenses. It also sought to realign the recognition of holidays in accordance with federal standards, particularly acknowledging Juneteenth as a holiday, and to establish criteria for the use of alternative verification systems.

Despite these well-intended amendments, the rule has been withdrawn by the Department after consideration of over 7,000 public comments and due to the pressing need to address other priorities, like implementing aspects of the Fiscal Responsibility Act of 2023. By withdrawing the rule, the Department aims to allow for a broader range of input and retain flexibility in developing future regulations.

Significant Issues or Concerns

Several issues emerge from this document. Firstly, the definition of "needy" remains ambiguous. Without a clear definition, there may be confusion over who qualifies for assistance, potentially excluding some who need help. Furthermore, the question of what expenditures are "reasonably calculated" to advance a TANF purpose lacks clarity, which could lead to inconsistent applications of funds.

The exclusion of cash donations and in-kind contributions from non-governmental parties as allowable maintenance-of-effort (MOE) expenditures may further complicate state efforts to meet MOE requirements, potentially limiting resources available for some beneficiaries. Additionally, the withdrawal itself highlights the need for more structured public input, yet it does not detail how future engagement will be facilitated, leaving stakeholders uncertain about their roles in shaping the program moving forward.

Impact on the Public and Stakeholders

For the general public, the withdrawal of the rule signifies a pause in the alterations of the TANF program that may have otherwise adjusted eligibility and resource distribution. This withdrawal could slow down improvements intended to make the system more efficient, but it does ensure existing services remain uninterrupted for the time being.

Specific stakeholders, such as state agencies and advocacy groups, might experience mixed impacts. On one hand, they are given more time to prepare for changes, and they may have opportunities to contribute further viewpoints that could shape better-informed regulations in the future. On the other hand, the uncertainty of how additional input will be gathered or used might cause frustration and impede planning strategies.

In conclusion, while the withdrawal of the proposed rule allows the Department to consider broader inputs, it raises concerns over clarity and procedural engagement. The decision illustrates the complexity of balancing regulatory efficiency with comprehensive stakeholder involvement in public welfare programs.