Bills
| 3.23.22

Should States Test a Wage Subsidy Aimed at Getting People on Welfare Into Long-Term Employment With Federal Grants? (H.R. 2842)

Do you support or oppose this bill?

What is H.R. 2842?

(Updated July 8, 2019)

This bill would require that $100 million in grants be made available under the Temporary Assistance for Needy Families (TANF) program to states for demonstration projects that provide wage subsidies enabling low-income individuals to enter and retain employment. At least one such program would need to be an apprenticeship program.

States would be able to use grant funds to subsidize an individual’s wages for up to 12 months. The subsidy could be up to 50 percent of an individual’s wages. Individuals would be eligible if they:

  • Are recipients of TANF or similar state assistance or a noncustodial parent of a child receiving such assistance;

  • Are unemployed when the subsidy begins;

  • Have an income below 200 percent of the federal poverty line (about $24,000 for an individual or over $48,000 for a family of four).

States would be required to ensure that participants in subsidized job programs don’t displace current workers. The ACF would be required to reserve funding to carry out this legislation from amounts in the Contingency Fund for State Welfare Programs.

Argument in favor

The grants this bill would make available would help states experiment with a wage subsidy that makes it easier for people to move from being on welfare to long-term employment.

Argument opposed

This bill should focus on strengthening the food stamps program rather than experimenting with programs aimed at getting people into jobs that allow them to support themselves.

Impact

People on TANF who would receive a wage subsidy for participating in pilot projects to help them find long-term employment; and state governments.

Cost of H.R. 2842

A CBO cost estimate is unavailable, but this legislation doesn’t authorize new spending and instead uses already appropriated funds.

Additional Info

In-Depth: Sponsoring Rep. Carlos Curbelo (R-FL) introduced this bill to give states the ability to conduct demonstration projects aimed at helping low-income individuals enter the workforce and maintain their employment long-term:

“This bill also empowers local communities by giving the ability to control how TANF dollars are spent. Instead of an inflexible, Washington-designed program, this legislation is reflective of the fat that every community has unique challenges that present barriers to finding a job.”

This legislation passed the House Ways and Means Committee on a voice vote, and it has the support of one Republican and one Democratic cosponsor in the House.

 

Media:

Summary by Eric Revell

(Photo Credit: University of the Fraser Valley via Flickr / Creative Commons)