AFDC/TANE differences AFDC TANE Open-ended entitlement No“entt| ement”- limited anyone who qualifies gets funding AFDC Time limited for at most 5 No time limits- could be years on program indefinitely ork requirements No work requirements Block grant to states Cost sharing by federal costs to federa and state governments government are not open open ended costs ended State determines benefit States have even more levels subject to broad control of the design of the federal guidelines program High tax rates on earned States have option to lower Income tax rates on earned income7 AFDC/TANF differences • AFDC – Open-ended entitlement – anyone who qualifies gets AFDC. – No time limits – could be on program indefinitely – No work requirements – Cost sharing by federal and state governments – open ended costs. – State determines benefit levels subject to broad federal guidelines – High tax rates on earned income • TANF – No “entitlement” – limited funding. – Time limited for at most 5 years – Work requirements – Block grant to states – costs to federal government are not open ended. – States have even more control of the design of the program – States have option to lower tax rates on earned income