Most low-income single mothers in Oregon who use federal cash assistance around childbirth stay in the program for less than a year. A study from Oregon State University suggests these mothers often rely on Temporary Aid for Needy Families (TANF) as a substitute for paid family leave.
This finding is timely. In 2023, Oregon introduced a taxpayer-funded paid family leave program, and poverty among young children remains a major issue across the United States. One in six American children under five lives in poverty, and Medicaid funds over 40% of all births.
Reducing poverty
The study analyzed Oregon birth records from 2016 and 2017 alongside TANF data. Each year, about 38,000 babies are born in Oregon, with Medicaid covering more than 40% of those deliveries. TANF, the main cash aid program for low-income families, is funded by both federal and state governments. In Oregon, low-income mothers can start receiving TANF in the ninth month of pregnancy, with benefits available for up to five years per family, except in special cases.
Compared to other states, Oregon’s TANF program is generous: 49% of eligible families receive aid, compared to a national average of 21%. This makes Oregon a useful case study for how TANF might function under less restrictive policies.
The study found a sharp rise in TANF enrollment around the time of childbirth, with many participants leaving the program soon after. This pattern reflects the financial challenges mothers face when they lose income or jobs during the transition to parenthood.
Unnecessarily complicated
Still, the process of applying for TANF is complicated, and its stigma may discourage many eligible families from applying. The researchers believe their findings likely understate the need for assistance. Economic struggles during early motherhood can harm health, family relationships, and child development.
The study also raises questions about how TANF and paid family leave might interact. Oregon’s new paid leave program offers better support than TANF, replacing 100% of wages for minimum-wage workers for 14 weeks. By comparison, TANF provides just $449 per month to a worker earning $540 a week.
Paid leave may appeal to families for more than its higher payments. Unlike TANF, it has simpler application requirements and carries no stigma. With paid leave now available, many mothers who once relied on TANF for short-term needs may choose the new program instead.
The research also touches on workforce issues. Oregon faces labor shortages, with just 66 available workers for every 100 job openings. Shortages are especially severe in childcare, healthcare, and manufacturing. Understanding how TANF and paid leave affect workforce participation could help address these gaps.
TANF continues to provide critical support for low-income families, but the study highlights a broader need for programs like paid family leave to address economic challenges during a crucial stage of life.
