DEPARTMENT OF HEALTH AND SOCIAL SERVICES

Division of Social Services

PROPOSED

PUBLIC NOTICE

TANF Family Cap

In compliance with the State's Administrative Procedures Act (APA - Title 29, Chapter 101 of the Delaware Code) and under the authority of 31 Del.C. §512, Delaware Health and Social Services ("Department") / Division of Social Services (DHSS/DSS) is proposing to amend the Delaware Social Services Manual (DSSM) 3008 regarding the TANF Family Cap.

Any person who wishes to make written suggestions, compilations of data, testimony, briefs or other written materials concerning the proposed new regulations must submit same to, Planning and Policy Unit, Division of Medicaid and Medical Assistance, 1901 North DuPont Highway, P.O. Box 906, New Castle, Delaware 19720-0906, by email to DHSS_DMMA_Publiccomment@Delaware.gov or by fax to 302-255-4413 by 4:30 p.m. on March 31, 2023. Please identify in the subject line: TANF Family Cap.

The action concerning the determination of whether to adopt the proposed regulation will be based upon the results of Department and Division staff analysis and the consideration of the comments and written materials filed by other interested persons.

SUMMARY OF PROPOSAL

The purpose of this proposed regulation is to change the Delaware Social Services Manual (DSSM) 3008 to provide additional financial assistance to applicable TANF recipients.

Statutory Authority

45 CFR 260

Background

Delaware previously imposed a "family cap" on recipients of Temporary Assistance for Needy Families (TANF) to reduce out-of-wedlock pregnancies among recipients. Under the family cap rule, a household will receive no additional TANF cash benefits if the household size increases due to the birth of a child that occurs more than ten months after the date of application for TANF, with some exceptions. This means that some households receive less in TANF cash benefits than they would have in the absence of Delaware's family cap policy.

Current research has found the family cap rule has the potential to drive children and families deeper into poverty with little evidence that the rule affects the birthrate for TANF recipients. Family cap rules are also likelier to increase financial hardship for children and families of color.

Delaware is proposing to repeal the family cap policy to help reduce childhood poverty and support families as they work toward achieving financial stability. As a result of this policy amendment, children who were previously family capped will receive monthly TANF benefits which will increase their family's benefit amount. This change will provide additional financial assistance to approximately 155 Delaware families.

Summary of Proposal

Purpose

The purpose of this proposed regulation is to change the Delaware Social Services Manual (DSSM) 3008 to provide additional financial assistance to applicable TANF recipients.

Summary of Proposed Changes

Effective for services provided on and after May 1, 2023, DHSS/DSS proposes to amend DSSM 3008 regarding the TANF Family Cap

Public Notice

In accordance with the federal public notice requirements established at Section 1902(a)(13)(A) of the Social Security Act and 42 CFR 440.386 and the state public notice requirements of Title 29, Chapter 101 of the Delaware Code, DHSS/DSS gives public notice and provides an open comment period for 30 days to allow all stakeholders an opportunity to provide input on the proposed regulation. Comments must be received by 4:30 p.m. on March 31, 2023.

Fiscal Impact

3008.2 Family Cap

Required Individuals:

No additional TANF cash benefits will be issued due to the birth of

a child, if the birth occurs more than ten (10) calendar months after:

While no additional TANF cash benefits will be issued for the child(ren), the child(ren) will be considered a TANF recipient for all other purposes, including Medicaid coverage, Welfare Reform child care, other supportive services and food stamp benefits.

NOTE: Children born prior to the periods identified above who return or enter the household are not included in this restriction.

Exceptions

Determining financial eligibility and grant amounts for an assistance unit which contains child(ren) affected by the family cap provision.

The child(ren) is/are included when determining the assistance unit's need for assistance. The child(ren)'s income and resources is/are included when determining the assistance unit's income and resources. The child(ren) is/are not included when determining the payment standard for the assistance unit.

See 3022 Ineligibility Due to Family Cap