February 26, 2009
GOVERNOR PATERSON ANNOUNCES $162.4 MILLION IN NEW FEDERAL FUNDING FOR SERVICES TO LOW-INCOME FAMILIES
Funding Available Due to Increased Enrollment in Food Stamp Program
Governor David A. Paterson today announced that due to increased enrollment in the federally-funded Food Stamp program, New York State has received $162.4 million in new federal funding through the Temporary Assistance for Needy Families (TANF) Contingency Fund – a federal fund that assists states in providing benefits and services to low-income families when unfavorable economic conditions exist.
New York State became eligible to receive these funds when enrollment for the federally-funded Food Stamp program grew more than 15 percent in one year to 2.2 million individuals. These funds, which are obtained through application to the federal government, can be used to support any TANF-eligible service, including child care, job training, homelessness prevention and other family support services. This is the first time New York State has been eligible for these funds.
“In light of unprecedented economic challenges, my administration is leaving no stone unturned in securing resources to help vulnerable New Yorkers through this crisis,” said Governor Paterson. “These distinct TANF funds, combined with the success of the economic recovery package, will help New York State achieve the critical goal of fiscal stability, while preserving the benefits and services people need most.”
Eligibility for the contingency funding is also predicated on New York’s ability to identify existing State level spending on programs serving low-income families that can be used to draw matching funds from the federal government. The Division of Budget and the State Office of Temporary and Disability Assistance (OTDA) have identified an amount sufficient to retain the State’s initial award of $162.4 million, and are working to identify additional matching funds so that the State can maximize its 2009 allocation. If additional existing State matching funds can be identified, and if sufficient federal funding remains available, New York will be able to receive a total of $400 million by September 30, 2009. This funding can be used for the same purpose as regular TANF funds and must be used in the fiscal year in which they are awarded.
OTDA Commissioner David A. Hansell said: “By taking steps to improve access to the Food Stamp program for eligible families, we have achieved a double benefit. We are both helping more families put food on the table than ever before, and we have successfully leveraged a new federal funding stream that will provide further support for those residents of our State most in danger of falling through the cracks during these difficult times.”
Easing program access for eligible working families, expanding eligibility, and launching a new prescreening web site, www.myBenefits.ny.gov, are among the reasons behind the increased enrollment in the Food Stamp program. Changes made to the program during 2008 resulted in an increase in benefit levels for many households, pumping additional federal dollars into communities throughout the State.
Specific uses of the contingency funds will be determined by Governor Paterson and the Legislature during the process of finalizing the 2009-10 Budget, and will include TANF-eligible programs that were not able to be funded in the Executive Budget.
