ACF Launches Redesigned Welfare Pilot with Five States to Promote Work, Reduce Government Dependency, and Strengthen Families

The U.S. Department of Health and Human Services (HHS), through the Administration for Children and Families (ACF), selected Arizona, Iowa, Nebraska, Ohio, and Virginia to participate in the redesigned Temporary Assistance for Needy Families (TANF) pilot. This pilot will test innovative approaches to promote employment, reduce government dependency, and strengthen family outcomes.

Authorized under the Fiscal Responsibility Act of 2023, the six-year pilot will replace the Work Participation Rate (WPR) and instead measure state success using new, outcome-based metrics that aim to deliver real results for families and taxpayers. For example, states will now be held accountable for improving employment outcomes, supporting earnings growth, and reducing reliance on cash assistance, Medicaid, and Supplemental Nutrition Assistance Program (SNAP) benefits.

"The Trump Administration is returning to the original promise of welfare reform-ensuring our programs are laser-focused on helping families achieve lasting self-sufficiency while delivering results for taxpayers," said ACF Acting Assistant Secretary Andrew Gradison. "This pilot marks the beginning of a new era where states are empowered to test new strategies, achieve real outcomes, and build an evidence base for innovations that drive upward mobility in America."

Arizona, Iowa, Nebraska, Ohio, and Virginia were chosen from a strong applicant pool to develop models and metrics other states can replicate to help families achieve self-sufficiency. In addition to concretely tracking employment and earnings, pilot states will pursue the following strategies to reduce dependency:

• Arizona will engage directly with employers that have vacancies for in-demand, well-paying positions to directly connect TANF participants with quality, sustainable employment.
• Iowa will improve referral coordination across services, enhance the quality of information available to TANF participants through financial literacy and decision-making tools, and build partnerships with employers to create employment and matched savings opportunities.
• Nebraska, in partnership with community organizations, colleges, and businesses, will develop personalized pathways for TANF participants to strengthen connections to local jobs. Pathways will include referrals to Nebraska's TANF-funded Fatherhood and Healthy Marriage Initiative.
• Ohio will implement a personalized "well-being assessment" for TANF participants, which will include intensive case management services, financial literacy training, and support for counties to build community capacity.
• Virginia will establish Personalized Results Plans for TANF participants to build upon the success of the Career Pathway Pilot, which blends sector-based training, intensive case management, and employment engagement to support participants as they gain credentials in fields like health care and skilled trades.

This new cohort of pilot states builds on ACF's commitment to reshaping human services programs to promote personal responsibility and strengthen families. Earlier this year, ACF ended the participation of five states selected under the Biden administration, whose pilot design did not reflect the current administration's priorities and relied on overly subjective, intangible metrics. The new pilot emphasizes measurable outcomes aligned with the Trump administration's agenda to restore the dignity of work, deliver lasting results for families, and create scalable TANF innovations that states nationwide can adopt.

The TANF pilot program will officially launch on October 1, 2025. ACF looks forward to working with each selected state to implement these innovative reforms and share lessons learned with other states and territories in the years to come.

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