Should federal funding and state MOE levels be changed?
Some legislators will likely argue that, in light of caseload declines since 1994, federal TANF funding is too high. Some may advocate for reduced block grants, either to generate federal savings or to redirect funds to other federal programs. States could respond by emphasizing that their focus is not just on families receiving welfare, but on using block grant resources for broader efforts on behalf of low-income families, and that funding needs to be maintained or increased. However, it is not yet clear if states will take such an approach, because some are likely to want to have their maintenance of effort obligations reduced and may be prepared to accept lower block grants in return for lower state spending. There may also be disputes between states about the appropriate levels of individual state allocations – some states may assert that it doesn’t make sense to allocate federal funds in 2002 based on federal welfare spending in states in 1994. The issue of funding levels will ha
