A report released on July 12 by the Department of Health and Human Services shows that close to 14 million children and adults received services funded at least partially by the Social Services Block Grant (SSBG). The new report also shows that state and local governments have relied heavily on SSBG to provide critical child welfare services. In fiscal year 2000, over $683.3 million in SSBG was used to fund child protective services, foster care, and adoption services alone. In addition, over 12 percent of SSBG funds ($331,533,000) were used for disability services, and over $181 million for services to the elderly.

The report also demonstrates the flexible manner in which states utilize the block grant. For example, Montana used the funding almost entirely to support persons with developmental disabilities. Alaska, Alabama, Colorado, and Louisiana devoted almost their entire block grant allotment for child welfare services. Texas, on the other hand, used over $85 million of their grant for services to elderly persons.

In order to make up over $1.2 billion in cuts to the funding stream since 1996, states have transferred $1.02 billion from the Temporary Assistance for Needy Families (TANF) program into SSBG. However, with a majority of states spending more than their present TANF block grant amount combined with rising caseloads in many states, transferring funds to SSBG will be more difficult.

The block grant, which was created to help people live safely in the community, and with as much independence as possible, has also supported families involved in the TANF program. Since TANF legislation was passed in 1996, SSBG expenditures for housing services has increased 89 percent; substance abuse services have increased approximately 62percent; and information and referral services, as well as employment support for persons with disabilities or barriers to employment have doubled.

Legislation to begin restoring SSBG is currently part of both the Charity Aid, Recovery, and Empowerment (CARE) Act and the Work, Opportunity, and Responsibility for Kids (WORK) Act that have passed the Senate Finance Committee and await debate by the full Senate.