Volume 12  No. 2

 June 2008        

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In Solidarity for Peace, Bread and Justice!

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A Joint Project of Maine Equal Justice and the Maine Association of Interdependent Neighborhoods

Good News for TANF Families

Maine’s TANF families will see some long-needed relief very soon because of new provisions in the state budget. The Governor proposed these changes and the legislature passed them during the 2008 legislative session.

  • Beginning in the summer of 2008, certain TANF families who have very high housing costs will receive an increase in their "Housing Special Need" payment. This will equal an extra $50 a month.
  • In addition, all families leaving TANF for employment will qualify for a new “worker supplement” payment. This will help them buy additional food as they transition to the workforce.

There has not been any increase in TANF benefits since 2001. Today, 23,000 children in 13,000 Maine families receive TANF benefits. With incomes well below the federal poverty level, these families struggle to make ends meet.

The TANF program gives a parent with one child and no other income $363 a month. A family of three with no other income receives $485. This additional housing and food assistance will bring crucial support to families as the cost of basic necessities such as gasoline, heating fuel, and food continue to rise.

Here is a brief summary of the new TANF assistance that will be available soon:

Increase in the Housing Special Need Payment

The Housing Special Need payment will increase from $50 to $100 a month. The increase will be funded with federal TANF block grant dollars. This payment goes to families whose rent (or mortgage) exceeds 75% of their income.

We expect that eligible families will begin to receive this additional payment in July or August of this year. This increase will help people like:

A mother of two from Augusta whose current rent is more than she gets in her TANF benefit. She is going to school through the Parents as Scholars program to get a degree in accounting. She and her children were homeless for several months last year because of the cost of housing. She is able to work off some of her rent by doing cleaning around her building but she is constantly behind in her payments. A special needs allowance for her housing costs would be a lifesaver for her.

“Worker Supplement” Payment - New Transitional Food Benefit

Families leaving TANF for work will receive a “transitional food benefit”. This means that families who leave TANF for work will receive $100 per month in the first year they leave TANF, $75 per month in the second year, and $50 per month in the third year.

The benefit will be placed on families’ EBT cards. It can be used to purchase anything that can be purchased with food stamps. By providing the benefit this way, it will not count as “income” for the federal food stamp program. This means that it will not cause a reduction in benefits for that program. This benefit will also be funded with federal TANF block grant dollars.

This “worker’s supplement” will help people like:

Lacey, a mother of three from Westbrook whose $7/hour wage from a local department store puts her over the income limit for TANF. A ‘Worker’s Supplement’ would provide assistance with food costs for families leaving TANF. Lacey says, “Although finances are the most difficult thing that I struggle with, I keep at it because I am determined to keep my job and not return to TANF. The Workers’ Supplement would go a long way toward helping me meet my goal of having financial security for my kids and me.”

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