Facing $1 billion deficit, Arizona sharply limits welfare

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34. These are 50-50 matching grants

If someone is on TANF Transitional Aid for Needy Families the federal Government will match any state grant up to the "Standard of Need" set by Congress. The Standard of Need is $741 a month. Thus if the state sets it's welfare grant at $741 a month the federal government will 1/2 of that amount but the state must pay the other half.

If the state Decides to pay less the feds will just pay half of what the state pays. In my home state the amount set for one person on welfare is $174 month. The feds pay $87.50 the state pays $87 50. If the state would set the welfare grant at $741 a month, the feds will pay $ 370.50 and the state will have to pay $ 370.50; total of $741.00.

No state has ever paid the Standard of need. The Standard of Need was set in 1967 as the minimal one needs to survive. The Standard of Need is adjusted for inflation each year but the state's are not required to adjust their welfare grants. My home state of Pennsylvania has not adjusted its welfare grants since 1982.

Thus the state's set the grant amount but gets half of that amount from the feds.