Federal TANF Expenditures in FY 2024

Overview

The Temporary Assistance for Needy Families (TANF) program is the second largest source of public funding for child care in the United States. TANF provides grants to states to help design and operate programs that support low-income families, including through increased access to child care and early learning opportunities, which helps parents to enter or return to the workforce.

For decades, federal regulations and guidance have allowed TANF funds to support or expand a broad range of child care and early learning initiatives in states.

Total Federal TANF Expenditures in FY 2024

In FY 2024, states were awarded approximately $16.8 billion for Temporary Assistance for Needy Families (TANF). See the chart below for details on how each state used these funds to support child care and early learning. 

States can use TANF funds in several ways to support child care and early learning:  

1. Transfer TANF funds to the Child Care and Development Fund (CCDF) (up to 30% of TANF award). 
2. “Direct spend” to support state- specific child care efforts (no limit).
3. Support pre-K or kindergarten education, expansion of Head Start, or other school readiness programs (no limit).

Nationally TANF awards were spent as follows in FY 2024:

• 8.2% ($1.39 billion) was transferred to CCDF
• 9.1% ($1.5 billion) was used as a “direct spend” to support specific child care efforts
• 0.3% ($43.7 million) was used to support pre-K, kindergarten, Head Start etc.
  

• CCDF Transfer
  • 16 states transferred 20% or more of their federal TANF award to CCDF (2 states met the 30% transfer maximum).
  • 10 states + DC transferred some funding, but less than 20%.
  • 24 states transferred no federal TANF funds to CCDF.
    
• CCDF, “direct spend” child care, and pre-K/Head Start
  • 10 states allocated 30% or more of their TANF funding to child care and early learning.
  • 33 states + DC allocated some funding, but less than 30%.
  • 7 states allocated no TANF funding to these programs.

State MOE Expenditures

To receive TANF funds, states must meet a maintenance-of-effort (MOE) requirement using state dollars. States can count expenditures on a broad range of benefits and services for eligible low-income families with children towards their MOE requirement, as long as the expenditures further one of TANF’s four statutory purposes. Child care spending may count toward a state’s MOE requirement. They do not necessarily need to spend “new” money to meet MOE requirements and can count existing state-funded programs and services.

• Total state TANF MOE expenditures: $20.5 billion
  • $6.9 billion (33.5%) of these funds were spent on child care and early learning services. 

• Combined federal TANF, state MOE expenditures, transfers: $37.5 billion
  • $9.9 billion (27%) of total funds were spent on child care and early learning services.

Download with chart

DownloadTANF to Child Care Chart (432.47 kB)