Wednesday, September 20, 2006

Emergency Cash from New Welfare Program

Are you "between jobs" and find yourself in a financial crunch? You expect to find work soon, but paying bills in the short term is a real problem.

A new program from the Pennsylvania Department of Public Welfare (DPW) is designed to ease the burden.

The program is called TANF Diversion, and it provides short term assistance for people in financial crisis due to a temporary loss of income. It is a one-time payment, and the maximum amount is equal to up to three months of the monthly grant for a specific family size.

For example, a family of four can receive a grant of up to $1,491 for expenses. You can apply for the grant only once in a 12-month period.

TANF Diversion

TANF Diversion is different than regular TANF in a number of ways. There is no employment and training requirement outlined in an Agreement of Mutual Responsibility (AMR), and the program does not count toward the "TANF time clock." Also, there is no child support requirement during the three-month grant, and the client receives the entire amount of any child support payments.

There is an option to receive extended medical coverage for up to one year if the applicant chooses to apply for Medicaid.

Benefits are put on the EBT card, and the TANF Diversion payment will not affect your other benefits such as food stamps and child care.

To apply for the new program, you will need to fill out an application at a county assistance office. Just be sure to tell your case worker that you want to apply for TANF Diversion, and not regular TANF.

Requirements

In order to receive TANF Diversion, you must meet the income eligibility requirements for regular TANF during the month that you apply. You must also be currently employed, or have received earned income in the last 90 days.

You must also verify a financial need in order to qualify for the program. Needs include the following:

* Work expenses, such as uniforms, highway tolls, etc.
* Housing costs, including rent, mortgage payments, home repairs, or utility payments
* Child care costs
* Transportation expenses, such as car payments, car repairs, or car insurance
* Costs to relocate for a new job

Also, applicants must expect self-sustaining income from the following:

* Employment
* Child Support
* Worker's Compensation
* Unemployment Compensation
* Veteran's Benefits
* Retirement/Pension Payments
* SSI or SSDI

A Caution

TANF Diversion is really designed for people "between jobs" who expect to find employment soon. The large grant may seem attractive, but a word of caution is in order.

If you receive a Diversion grant, and you then apply for regular TANF before the three month period expires, an overpayment will exist. DPW will reduce your regular TANF grant in order to balance the money that was given to you "up front" as part of the Diversion program.