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.