Question

How does the TANF attempt to loosen the poverty trap?

Short answer

TANF tries to loosen the poverty trap in society through demanding work requirements on which the funding from the government will be utilized and binding the time limits of receiving federal money through TANF by an individual.

Step-by-step solution

Step 1. Temporary Assistance for Needy Families (TANF)

The Temporary Assistance for Needy Families (TANF) is a government-aided welfare program where each state is provided with a fixed amount of money from the part of the federal government to be spent on any anti-poverty program (like direct cash transfers to the poor families, reduction in teenage pregnancy, etc.) by the states.

Step 2. The TANF in loosening the poverty trap

The Temporary Assistance for Needy Families (TANF) was designed in such a way that it can loosen the poverty trap in society. The federal government kept two primary requirements for receiving the facilities of TANF. One, the states must come up with work requirements the grants from TANF will be utilized. Second, the benefits from TANF (in the form of receiving federal money) will be given to an individual for a total of only five years over his/her lifetime, not more than that. This way, TANF tried to minimize the poverty trap in society through demanding work requirements and binding the time limits of receiving the benefits from TANF.