HR3672SEP9

TheWeekInCongress.com

Week Ending September 9, 2005

H.R.3672 To provide assistance to families affected by Hurricane Katrina, through the program of block grants to States for temporary assistance for needy families.

BRIEF

The bill provides that Federal grants for temporary assistance to needy families (TANF) allotted for the first quarter of 2006 be distributed where needed as soon as possible after this bill is enacted. The amounts distributed will be equal to the amounts authorized through the first quarter of this 2005 fiscal year.

The bill provides for TANF funds to be redistributed to States that take on the responsibility of TANF recipients who left the disaster area such as the New Orleans residents now relocated in several States. Recipients must not be receiving aid from any other State. States are not required to match TANF funds.

Louisiana, Mississippi and Alabama would become eligible for Social Security Act loans up to 20% of family assistance grants already authorized. Those three States would not be liable for penalties if they do not repay the loans by October 1, 2007 or make any interest payment on the loans. Work requirements and other time limits traditionally a part of TANF assistance are suspended due to the temporary nature of the TANF assistance.

Sponsor: Representative Jim McCrery (R-LA-4^th)

Vote: Passed House September 8, 2005.

Cost to the taxpayers: The bill does not authorize additional spending but rather an advance of future spending and the requirement that current spending levels be maintained. There is a likelihood that Congress will see an increase in needy families and will have to increase funding to the TANF program. Spending specifically for disaster relief from this program is estimated at $539 million over five years.