Do states have flexibility in how they treat SSI benefits received by TANF families?

States indeed have a great deal of flexibility regarding the treatment of Supplemental Security Income (SSI) benefits received by families that are also part of the Temporary Assistance for Needy Families (TANF) program. This flexibility allows states to determine how they want to account for SSI when calculating TANF benefits, including how to treat SSI as income for eligibility purposes and how it may impact TANF benefit amounts.

This state flexibility can lead to variance in how different states provide support to TANF families who receive SSI. Some states may choose to disregard a portion of the SSI benefits, while others might count them fully toward the family’s income. By allowing states this discretion, the federal system promotes adaptability to the varying needs and circumstances of families across the country.

This contrasts with a rigid federal guideline approach, where states would be bound to strict regulations regarding SSI treatment without room for adjustment based on local needs. The flexibility that states have enables them to create solutions that reflect the realities of their specific populations.