Big changes are underway for safety net programs like TANF, SNAP, and Medicaid—and they’re already being tested in several states. These new pilot programs aim to reshape how success is measured in public assistance, focusing more on employment outcomes and reduced benefit usage rather than participation in job-readiness programs.
While the government says this is about promoting work, reducing dependency, and strengthening families, it raises some important concerns for those who rely on these services to survive. Let’s break down what’s happening, how it might affect you, and why everyone—regardless of state—should be paying attention.
What’s Happening with TANF?
Five states—Arizona, Iowa, Nebraska, Ohio, and Virginia—have launched a six-year pilot program to revamp Temporary Assistance for Needy Families (TANF), commonly known as EBT cash. These pilots change how state performance is measured. Instead of tracking how many people join job training programs, states will be evaluated on job placement rates, earnings increases, and reductions in public benefit usage.
While this sounds promising in theory, it can lead to unintended consequences. States might feel pressured to reduce enrollment numbers to meet performance targets, which could make it harder for families to qualify or stay enrolled in the help they need.
One of the biggest risks is the “benefits cliff.” That’s when a small increase in income—sometimes as little as a few dollars—disqualifies a family from thousands of dollars in support. Without additional income to make up for that loss, families often end up worse off.
What Are the States Doing Differently?
Each state is testing a slightly different approach under this new welfare reform model:
- Arizona is connecting TANF recipients directly with employers who offer in-demand jobs. This model focuses on real-world job placement.
- Iowa is expanding financial literacy tools and matched savings accounts, while also improving coordination between services. Critics argue that budgeting knowledge alone doesn’t fix income gaps.
- Nebraska is creating “personalized pathways” for recipients, with referrals to their fatherhood and healthy marriage initiatives.
- Ohio is launching “well-being assessments” alongside financial literacy training and intensive case management, though details remain limited.
- Virginia is expanding its existing career pathway program with personalized plans to help participants earn employment credentials, especially in high-demand fields like healthcare.
These pilots may sound helpful, but if the primary goal is to reduce enrollment without verifying long-term financial stability, many families could be left behind.
Why This Matters in Every State
Even if you don’t live in one of the pilot states, these changes could still affect you. The federal government is using this six-year pilot to create a nationwide model. If it’s deemed successful, similar reforms could roll out across the country.
This could include new or stricter work requirements, shorter time limits for benefits, and tougher eligibility reviews. That’s why it’s important to stay informed, open your mail, and ask questions if anything about your case changes.
New $100M Investment in Family-Focused Grants
Alongside the new TANF reforms, the government has also awarded over $100 million in grants to programs that focus on healthy marriages and responsible fatherhood. These grants were awarded to 109 organizations across 38 states.
Programs like Forge Fatherhood help dads strengthen their parenting skills and increase economic stability. HEART (Helping Every Area of Relationships Thrive) promotes healthy relationships and marriage education. Meanwhile, Ready for Life supports youth ages 14–24 with relationship skills, parenting education, and financial literacy—particularly for young people who are parents themselves.
If you’re interested in finding local organizations that are receiving this funding, you can browse the full list using the federal interactive map, which shows which groups are funded in each state and what services they offer. Some provide transportation, mental health care, meals, workshops, and more.
What You Should Do If You Receive Benefits
Make sure your contact information is current with your local assistance office. If you receive any letters about changes to your case, read them carefully and ask your caseworker to explain anything that’s unclear. The fine print matters. New plans may come with new obligations or work requirements, so don’t be afraid to ask questions.
This is especially important if you’re close to the benefits cliff. Losing support due to a small income bump could hurt more than help, so it’s critical to understand how these pilot programs might affect you.
Relief Recap
New pilot programs in five states are changing how TANF is evaluated—and these changes could spread nationwide. While the goal is to promote work and reduce dependency, there’s concern that it could lead to stricter rules and fewer people qualifying for help. At the same time, new grants are funding programs to support families and improve long-term outcomes, especially for parents and young adults.
As always, staying informed is your best defense. Watch your mail, ask questions, and check in with local organizations that may now have additional resources to help.