Michigan Gov. Rick Snyder (R) is expected to sign a bill into law capping how long state residents can receive Temporary Assistance for Needy Families (TANF) benefits, a federal program which provides temporary financial assistance for struggling Americans:
Gov. Rick Snyder is expected to sign a bill into law capping how long state residents can receive welfare assistance.
The new 48-month limit is expected to result in more than 11,000 people losing benefits at the start of the fiscal year, Oct. 1. The new limit — bringing the cap down from the federal 60-month limit — is projected to save $60 million.
As the Center for Budget and Policy Priorities’ Liz Schott points out, the $60 million in cuts come after Snyder signed into law a $1.7 billion tax cut for corporations. That’s about $30 in corporate tax cuts for every dollar saved in welfare benefit cuts.
Local charities are expressing concern about the TANF cuts, saying that the severe reductions in aid will created increased demand on their already strained resources. “It’s going to impact the demand on the services we offer, that the other pantries offer. It’s going to impact the shelters,” said Alice Rieves, director of a food bank in Port Huron told the Port Huron Times Herald. “I think there’s other things we can do rather than cutting them off state aid,” she added.
As ThinkProgress has noted, Snyder’s tax plan is one of the most regressive in the county, lowering taxes on businesses by 86 percent cut while effectively increasing taxes on residents in lower income brackets.