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Appropriations committee advances TANF clarification and partial cash assistance restoration

Joint Committee on Appropriations (South Dakota Legislature) · March 31, 2026
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Summary

Lawmakers approved a letter of intent that clarifies partial restoration of TANF cash benefits tied to $427,000 in state and $427,000 in federal expenditure authority, requests five years of TANF funding data and a plan for managing cash assistance going forward.

The Joint Committee on Appropriations voted to advance a letter of intent clarifying the partial restoration of cash assistance benefits under Temporary Assistance for Needy Families (TANF) and to request historical and projected TANF funding data.

Representative Eric Muckey said the LOI clarifies that $427,000 in general funds and $427,000 in federal fund expenditure authority were approved, and that the language would result in a 5% increase in cash assistance benefits tied to that appropriated amount. "This letter of intent... clarifies the specific partial restoration of reduction in cash benefits based on the amount that we approved," Muckey said. The LOI asks for five items, including carryover projections and a narrative of options to manage cash assistance going forward.

Committee questioning addressed the LOI’s instruction that the Department of Social Services use federal fund expenditure authority to spend TANF carryover funds if available. Representative Muckey clarified that the appropriation’s federal fund expenditure authority would come from available TANF carryover funds. Representative Jorgensen asked about the size of the federal carryover; Muckey estimated the balance is "somewhere in the realm of anywhere between 19 to 21,000,000 dollars." Senator Carly voiced opposition to language that she said would "press" an agency to spend funds rather than allow spending to follow demonstrated need.

A do-pass recommendation was approved by the committee. The LOI advances an information-gathering and policy-guidance step; it does not itself appropriate additional funds beyond the authority noted in the General Appropriations Act.