Are there any alternatives to help TANF-eligible families overcome debts, arrearages or other financial problems using the Emergency Fund?
A2:Yes, a State could charge a third party a participation fee. A State could also accept a donation from a third-party company that is participating in a repayment program with the State to assist TANF-eligible individuals pay past-due bills. Both the fee and the donation can be considered program income in accordance with 45 CFR 92.25. Section 92.25(b) defines program income as “gross income received by the grantee…directly generated by a grant support activity or earned only as a result of the grant agreement during the grant period.” The preamble to the original TANF rule provides further guidance: “States must use such program income for the purposes of the TANF program and for allowable TANF activities. We will not require States to report on the amount of program income earned, but they must keep on file financial records on program income earned and the purposes for which it is used in the event of an audit or review.” (See 64 Fed. Reg. 17840 (April 12, 1999).) Further informat
