This is part of Kentucky Youth Advocates’ series on the federal landscape and the impacts on Kentucky children and families. 

As a part of the federal government’s overhaul of the country’s long standing safety net programs, recent updates and conversations about the Temporary Assistance for Needy Families (TANF) program give insight into the potential changes ahead. This spring, a pilot project that aimed to shift TANF away from strict work requirements and toward measuring success based on family well-being was cancelled. Meanwhile, the House Ways and Means Committee is actively exploring broader reforms to how states use TANF funds – which is known as KTAP here in Kentucky.

What is TANF?

TANF was created in 1996 as a replacement for the Aid to Families with Dependent Children (AFDC) program, in order to provide temporary financial assistance to low-income families. Unlike its predecessor, TANF includes strict work requirements for eligibility and allows states flexibility in how funds are spent. Due to this, many states, including Kentucky, use TANF funds to support a wide range of services beyond direct cash assistance, such as child welfare, job training, and prevention efforts.

In order to receive federal TANF funding, states must meet work participation rate requirements mandating that at least 50% of all families and 90% of two-parent families receiving assistance are engaged in approved work activities for a minimum number of hours per week, depending on the family.

What was the Federal Pilot Project?

In 2023, as part of the Fiscal Responsibility Act, Congress authorized a five-state pilot to explore alternative ways to measure TANF success. Rather than relying solely on work participation rates, the pilot aimed to test whether focusing on family outcomes, such as increased income, employment stability, and overall well-being, would better support long-term self-sufficiency for TANF families.

States were encouraged to develop plans that centered lived experience, emphasized holistic services, and addressed barriers to working, such as: access to education, mental health care, or child care. The overall goal of the pilots was to reframe TANF as a tool for families, rather than a compliance-based work program.

Despite this, in early 2025, the pilots were canceled, with the Administration for Children and Families citing misalignment with current federal priorities. In their statement, the agency mentions that there are plans to release new guidance for a future pilot program that is focused more narrowly on promoting work and reducing dependency.

What Does it Look Like in Kentucky?

In Kentucky, TANF is administered as the Kentucky Transitional Assistance Program (KTAP), alongside the Kentucky Works Program (KWP). Through KTAP thousands of families across the commonwealth receive cash assistance, including approximately 42% of all kinship families. 

In 2023, the state implemented major modernization efforts, including doubling monthly benefit amounts, raising income eligibility, and expanding supports for transportation, relocation, and emergencies. Early outcomes from these changes include:

  • A rise in average monthly caseloads to nearly 15,000 families
  • Over 6,200 adults engaged in education or job training
  • 233 monthly case closures due to employment gains

Building on this moment, Kentucky submitted a federal pilot plan focused on integrated case management, flexible service options, and using TANF as a tool to reduce child welfare involvement.

What Could Federal Changes Mean for Kentucky?

With the pilot canceled, Kentucky may face limits in how it can continue pursuing innovative approaches to serving families. Without federal flexibility, programs will maintain being judged primarily on work participation rates instead of meaningful outcomes for families. 

Currently, the federal House Ways and Means Committee has signaled strong interest in reshaping how TANF funds are spent and measured. A recent hearing emphasized the need for greater accountability for states and a stronger connection between TANF investments and long-term family economic security. 

These reforms have the potential to either further reinforce strict work requirement compliance or pave the way for a more family-centered approach as the pilots aimed to achieve.

What’s Next?

While Kentucky’s TANF pilot was short-lived, conversations around TANF reform are far from over. 

As Congress continues to debate the future of TANF, it is vital for advocates to reach out to their federal delegates to urge support for:

  • Prioritizing family outcomes over work participation rates
  • Flexibility for states to invest in education, mental health care, kinship support, and other proven strategies
  • Innovative pilot programs to reimagine TANF participation and promote long-term stability

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