TAFDC Reform 4

SECTION 46.   Said section 110 of said chapter 5, as amended by section 124 of chapter 133 of the acts of 2016, is hereby further amended by striking out subsection (d) and inserting in place thereof the following subsection:-

(d) An earnings disregard of earned income shall be provided to both exempt and nonexempt families, such that a recipient shall be eligible to have 100 per cent of the remaining gross earned income, before dependent care deductions, disregarded for 6 consecutive months immediately following the start of initial employment, provided that total income does not exceed 200 per cent of the federal poverty level for the household size. Such recipient shall also be eligible to have 50 per cent of the remaining gross income disregarded following the initial 6 month period of earnings disregard, provided that total income does not exceed 200 per cent of the federal poverty level for the household size.
 
 

Summary:
This section simplifies the TAFDC grant structure by eliminating the reduction for working recipients' grants. This section also, together with the next section, reduces the cliff effect for a family that goes back to work while receiving TAFDC.