# Plain Language Summary of the WORK Act

The WORK Act is designed to measure how well states are helping people on welfare find and keep jobs. Right now, states receive federal money to run their welfare programs, but there's no consistent way to track whether those programs are actually getting people employed. This bill creates a new system where states have to measure specific outcomes—like how many people find jobs after leaving the program, whether they keep those jobs, how much money they earn, and whether young people finish high school. Starting in 2024, the federal government and each state will negotiate performance targets based on these measures, taking into account differences in local job markets and the challenges facing the people receiving assistance.

The bill also gives states more flexibility in how they use their welfare funding. Currently, states can transfer up to 30 percent of their welfare money to other programs; this bill increases that limit to 50 percent. More importantly, it allows states to transfer welfare funds to job training programs run under the federal Workforce Innovation and Opportunity Act. However, there are strings attached: any welfare money transferred to job training must be used to help people currently on welfare, and no more than 15 percent can go to general workforce activities. States that decide to completely separate their welfare program from the federal workforce system won't be allowed to make these transfers.

Finally, the bill requires states to update their welfare plans every two years instead of on a different schedule, and it allows states to combine their welfare plan with their workforce development plan into one document. This is meant to encourage better coordination between welfare agencies and job training programs so that people receiving assistance can more easily access employment services. The changes take effect on October 1, 2022, meaning states will need to start collecting employment data and setting performance goals for the 2024 fiscal year.

WORK Act

Wenstrup, Brad R.

Workforce Opportunity Realignment Kickstart Act or the WORK Act This bill modifies requirements for states with respect to the administration of Temporary Assistance for Needy Families (TANF) funds. Specifically, the bill (1) establishes new performance indicators related to employment and educational outcomes for states receiving TANF funds; (2) increases the percentage of TANF funds, from 30% to 50%, that may be used to support other state programs; and (3) allows states to use TANF funds to carry out certain workforce development programs. Under current law, states may use TANF funds to support other state programs only if they are related to Child Care and Development Block Grants or Social Services Block Grants. States must negotiate with the Department of Health and Human Services (HHS) to establish a level of performance for each indicator, taking into account certain economic, demographic, and other factors. HHS must periodically revise levels of performance for states to reflect economic and other conditions.