WHAT HAPPENS TO THE AFDC PROGRAM?
The Federal Act repeals the Aid To Families With Dependent Children program and replaces it with the Temporary Assistance to Needy Families (TANF) block grant. In fact, the TANF block grant not only includes the former AFDC program, it also combines funding for Emergency Assistance and JOBS into a single capped amount to the states. 4. WILL MORE OR LESS FEDERAL MONEY BE AVAILABLE TO THE STATE OF MICHIGAN UNDER TANF? Under the TANF block grant, the state of Michigan will receive approximately $775.4 million from the federal government in each year beginning with FY 1997 through FY 2002. It is estimated that this amount represents some $181 million more than received in FY 1996 (see CHART 1 in published document). The Family Independence Agency (FIA) has indicated that it will request the federal government to “hold” $50 million of this windfall in a rainy day fund for future use. However, this TANF grant amount can be reduced by as much as 5% the first year and 2% each year thereafter i
