The Temporary Assistance for Needy Families (TANF) provisions in the fiscal year 2006 federal budget will require most states to substantially increase the number of TANF recipients participating in work-related activities. As states analyze their alternatives, it is important to do more than simply focus on the narrow questions of federal compliance, but to also use this time to identify approaches that will improve programs' effectiveness in helping families enter and maintain sustainable employment.
This paper is one of a series being prepared by the Center for Law and Social Policy that is intended to inform the decisions of state legislators, program administrators, service providers, and advocates and to enable policy choices that simultaneously help lowincome families improve their labor market success and states meet federal participation rates.
The paper summarizes the research on the contribution of skills and credentials to labor market success and the lessons learned about effective welfare-to-work training and postsecondary education strategies.
Research by the U.S. Department of Education found that students working 15 hours or more were much more likely to report that work interfered with their schooling by limiting their class choices and schedules, the number of classes they could take, and students' academic performance.
The Federal Work Study program operates in most community and four-year colleges and provides jobs for low-income students who are eligible for federal financial aid, such as Pell Grants, through Title IV of the Higher Education Act (which includes most postsecondary students who are also receiving TANF).
Well-designed education and training services have been shown to contribute to welfare recipients' transition to work and their subsequent labor market success.
With increased work participation rates, states now have the opportunity to substantially increase participation in such activities.
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