Temporary Assistance for Needy Families (TANF)

Temporary Assistance for Needy Families (TANF). A. This type of income is defined as follows: 1. TANF provides a monetary grant to families under a program that uses income as a factor of eligibility and is partially funded by federal block grants. B. This type of income is treated as follows: 1. TANF payments are considered income based on need (IBON). 2. If a Medicaid client is included in the TANF family unit, the client’s share of the TANF grant is counted dollar for dollar as income and the $50/$20 general income exclusion does not apply. 3. TANF incentive payments, additional payments made as a reward for compliance with program requirements, are also IBON and the $50/$20 general income exclusion does not apply. 4 Participation allowances for the TANF program, such as those for transportation, are reimbursements.