Comparing the New (TANF) with the Old (AFDC) - State Spending On Afdc And Tanf

The welfare-reform law requires states to maintain at least 75 percent of their "historic state expenditures" (the state share of 1994 AFDC, EA, and JOBS expenditures). This cost-sharing requirement (in order to receive the full family-assistance grant) is called the maintenance-of-effort (MOE) level. If a state fails to meet the federal work requirements, its MOE level becomes 80 percent. Failure to meet the MOE level results in a dollar-for-dollar reduction of the state's family assistance grant. Table 7.3 provides historic state expenditures (i.e. 100 percent MOE level) for each state as well as the 75 percent and 80 percent MOE thresholds.