Coalition Letter Supporting Transitional Jobs for "Hard-to-Employ" TANF Recipients

The Honorable Max Baucus
Chairman, Finance Committee
United States Senate

The Honorable Charles Grassley
United States Senate

Dear Senator Baucus and Senator Grassley,

We are writing to state our strong support for federal funding for Transitional Jobs programs as part of legislation to reauthorize the Temporary Assistance for Needy Families (TANF) block grant.

Transitional Jobs are short-term, publicly subsidized jobs that combine real work, skill development, and support services to help participants overcome substantial barriers to employment. Transitional Jobs programs demonstrate that the right combination of support, work, and vocational training can turn a job seeker into a permanent wage earner. They operate in rural, urban, and suburban areas of the country, engaging individuals with a broad array of barriers to work. Participants earn paychecks rather than welfare grants, allowing them to pay into Social Security, and qualifying them for the federal Earned Income Tax Credit. Transitional Jobs programs are able to do what their cheaper and less intensive unpaid counterparts have not--help people who face barriers find stable, permanent employment.

Transitional Jobs have proven to be one of the most effective program innovations of the past six years. Mathematica Policy Research found that, similar to other welfare to work programs, nearly 50% of participants complete the program and of these 81-94% find permanent, unsubsidized jobs. The outcomes were similar across rural and urban sites. Transitional jobs programs truly help participants break negative work patterns and take the first step on a career ladder. Those at risk of not being served want to work and do so when provided with the right tools and opportunity. Given the significant level of barriers to employment among those served by these programs, Mathematica researchers have characterized the programs as “...a promising and flexible approach to serving the hard-to-employ.”

The TANF and particularly Welfare-to-Work block grant funds, which have required a focus on recipients with significant barriers to employment, have been the principal sources of funding for Transitional Jobs programs. Welfare to Work funds have either already been exhausted or remaining funds will need to be spent in the next year or two. In addition, with an ever growing competition for TANF funds in a period of rising caseloads and declining state revenues, it will be increasingly difficult to fund Transitional Jobs programs solely with TANF funds. In addition, if states are required to meet increased participation requirements, there will be even less ability than there is now to fund more effective but expensive alternatives such as Transitional Jobs for individuals with barriers to employment.

While many have left welfare for work during the past several years, too many have been left behind because they don’t have a high school degree, have little or no work history, have health problems, are in abusive relationships, or are dealing with other circumstances that have prevented them from finding and keeping a job.

For all of these reasons, dedicated funding for Transitional Jobs programs should be included in the TANF reauthorization legislation currently under consideration. These new funds should be in addition to full funding for the TANF block grant and for Child Care. Adequate funding levels will insure that every state has the opportunity to provide Transitional Jobs programs and maximize the number of individuals able to secure employment.

We look forward to working with you on this important issue.

Sincerely,