May States use TANF and MOE funds to help needy families resolve bad debt and credit problems?
Yes, States may use TANF and/or MOE funds for these purposes. Even under prior law, States helped needy families avoid eviction by providing them with funds to cover their rent arrearages. Likewise, clearing up other kinds of debt (e.g., credit, car payments, etc.) would be consistent with the goals of TANF. Q22: May a State use TANF or MOE funds to provide benefits that could serve as an adjunct to those available through its UI program (e.g., to provide coverage for short-term paid parental leave or to provide benefits for families with insufficient earnings to meet UI thresholds)? A: Yes, we mentioned that supplemental unemployment insurance for unemployed workers in needy families is an allowable use of funds in the TANF funding guide (Helping Families Achieve Self-sufficiency). For example, a State might use TANF or MOE funds (or both) to provide UI-type benefits to families with insufficient earnings to meet UI thresholds or to provide paid parental leave to families who would ot
