Maryland’s Cash Assistance Program is Not Always Enough to Keep Families From Becoming Homeless

Families receiving Temporary Cash Assistance (TCA), Maryland’s equivalent of the federal Temporary Assistance for Needy Families (TANF) program, are one of the most economically marginalized groups in the state. Even though these parents and their children are receiving assistance from the state to navigate a rough patch, they are still more likely to face housing insecurity and homelessness than other Marylanders.

Maryland has some of the highest housing costs in the nation, and families that receive TCA cannot afford unsubsidized rent in the state. Many of the families receiving cash assistance are likely to also qualify for housing assistance programs but, due to deeply inadequate funding of such programs, many who are eligible are unable to receive the help they need. Maryland policymakers can tackle the housing burden for families receiving TCA in various ways, such as eliminating penalties that reduce cash assistance amounts for families also receiving subsidized housing, increasing the monthly benefit amounts to better align with the costs of living, and creating an allowance that can be used to cover housing expenses.

During January 2023, an estimated 5,865 people in Maryland were experiencing homelessness, of which 1,854 were families with children, according to the U.S Department of Housing and Urban Development (HUD). Most (84%) of these people experienced what is referred to as “sheltered homelessness.” HUD defines homelessness as people experiencing a lack of a fixed, regular and adequate place to sleep. Importantly, their definition does not include people staying with family or friends, otherwise also known as “couch surfing,” which others may consider as being homeless as well. HUD also specifies two different types of homelessness:

• Sheltered homelessness: people who are staying in shelters, transitional housing, or other safe haven programs, and
• Unsheltered homelessness: people living in a location not suitable or designed for habitation such as parks, cars, or streets.

Black Americans are overly represented in the homeless population, making up 37% of all people experiencing homelessness nationally despite making up only 13% of the U.S. population. More concerning, Black families with children are more likely to experience homelessness.

What does housing look like for families receiving TCA?

In 2023, about 1,145 households receiving TCA reported experiencing homelessness, according to data from the Maryland Department of Human Services. The vast majority of families experiencing

Number of households experiencing homelessness while receiving TCA in 2023. Source: Maryland Department of Human Services

homelessness were headed by Black women:

• 95% of these cases had women as the head of household
• Black families constituted 70% of these cases
  • 20% were white
  • 8% were classified as another race

The majority of cases were in:

• Baltimore City (31%)
• Baltimore County (14%)
• Prince George’s County (10%)
• Washington County (9%)

These data suggest that Maryland needs stronger wraparound support systems that can help families get on their feet, with a warm, safe, and consistent home in which to sleep and live. It is especially important that families have a place to live and get ready for children to succeed in school and if the adults in the household are subject to the TANF work requirements (as in the case many times) in order to receive cash payments.

In addition, between January 2022 and October 2023, the number of households simultaneously receiving TCA and living in public housing ranged from 2,900 to 3,600 households each month. Maryland families in need of cash assistance should not be penalized for receiving support to pay for their housing expenses, as cash assistance alone is not enough for families to meet their basic needs. However, Maryland’s current practice is if families are benefitting from subsidized or public housing, their TCA benefit amount is reduced by $60 per month. This is due to the fact that Maryland’s TCA program regards housing support as unearned income, which is then calculated when determining cash benefit amounts.

During the 2023 legislative session, some legislators tried to tackle this issue by introducing House Bill 168 which sought to eliminate the $60 reduction. Some have expressed concerns about whether the state can afford the increased cost of providing full cash benefits to the families receiving housing assistance, given current budget challenges. The fiscal note on that bill estimated that over 5,800 TCA recipients were living in public housing, which is much more than the most recent data described above. Therefore, it appears that the cost of eliminating the $60 reduction could be lower than previously estimated. Additionally, $35.9 million in federal TANF funds will remain unspent in the upcoming budget year, according to state budget documents, which would more than cover any expenses incurred.

How are TANF agencies across states supporting families experiencing homelessness and housing insecurity?

The Administration for Children and Families at the U.S. Department of Health and Human Services published a report in which TANF agencies in multiple states were evaluated on how they support families experiencing homelessness who also receive cash assistance. A survey conducted in 2019 indicated that less than half (43%) of TANF administrators (people who run TANF in their respective states) designated TANF funds for different services for families experiencing homelessness. This evaluation also found that:

• TANF administrators and agencies define homelessness differently and may not always take into account the complexity of what it means to experience homelessness. For example, some define it as living on the street or in an emergency shelter, while others also consider families sleeping from couch to couch as a form of housing insecurity and homelessness.
• 28% of respondents reported setting aside cash assistance for families experiencing homelessness.
• Some agencies directly fund organizations that work with families experiencing homelessness while others integrate housing assistance services within their agencies or provide direct cash payments for housing-related purposes.
• There are different processes when screening for homelessness. Some agencies will screen for it by asking on the application, while others rely on families to self-report.

While the research identified different models TANF agencies use to combat homelessness, it is clear that there is more work to be done. Something to keep in mind is that, unlike organizations focused on helping families secure housing and serving homeless populations, the federal TANF program focuses on self-sufficiency and work rather than utilizing a housing-first model. This approach overlooks the need to support families holistically, ensuring that their basic needs are taken care of before sending them to work. Not only does housing support address housing insecurity, it also helps course-correct racial inequities in housing resulting from a long history of discrimination against Black families and other families of color. The report did highlight the fact that policy changes at the state level are more likely to lead agencies to help families experiencing homelessness. This was clearly seen during the COVID-19 pandemic where some TANF agencies used funds to help families pay for rent as they lost their jobs.

What else can be done?

To be eligible for TCA, families generally need to have little-to-no income, and even then, there is an extensive administrative process to be approved. The small amounts of cash assistance they receive is often used to pay for basic necessities and bills such as diapers, school clothing, or rent. However, federal TANF policy awards states the flexibility to support families in the best ways they see fit. This flexibility allows TANF funds to be used in various ways that can help support families including for:

• Fixed and short-term rental assistance (i.e. for a set number of months)
• Housing search assistance
• Security deposits
• Moving expenses

Several states have also introduced housing supplements or allowances for families in TANF to better afford housing costs, in addition to their regular monthly benefits:

• Maine: Allowance of up to $300 per family who spend at least 50% of their monthly income on housing related expenses.
• Minnesota: Allowance of $110 for a household as long as they meet income and non-income eligibility criteria, are not child-only cases, and the household does not receive HUD assistance (except for specific circumstances).
• North Dakota: Allowance of up to $50 per TANF family who has sole responsibility for housing costs. If the family receives a housing subsidy or some type of housing assistance, they are not considered eligible.
• Hawaii: Households may receive housing subsidies of up to $500 a month as long as there is participation in their work program.
• Massachusetts: The basic TANF grant in the state includes a $40 rent or mortgage allowance if the recipient pays for private and unsupervised housing.

Maryland can follow these states. Additional 2023 legislation, House Bill 562 aimed to provide a housing allowance for families receiving TCA, starting at $350 per month for one person and an additional $100 per month for each additional household member. However, this bill also did not pass.

If not through housing allowances, it is vital that Maryland prioritizes families by appropriating a larger share of TANF funds for cash assistance. Direct cash allows families to have more flexibility in spending for a variety of needs, rather than assistance that is restricted and does not always take into account the complexity of life challenges. The amount also does not fully take into account the realities of housing and rent increases. Although HB 168 did not pass in 2023, the Maryland Department of Human Services can eliminate the $60 reduction for families receiving public housing assistance via administrative methods. Rather than offsetting benefits of one program due to gaining benefits in another, all types of assistance should build on each other to maximize positive outcomes for children and families living in poverty.

The TANF program is meant to provide assistance to ensure that children can be cared for in their own home – let’s start by making sure that everyone has a place to live.