BILLING CODE: 4184-36
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
45 CFR Part 265
RIN 0970-AD04
Temporary Assistance for Needy Families Work Outcomes Measures
AGENCY: Office of Family Assistance (OFA), Administration for Children and Families (ACF),
Department of Health and Human Services (HHS).
ACTION: Interim final rule.
SUMMARY: This interim final rule modifies ACF regulations in order to implement the statutory
changes enacted by section 304 of the Fiscal Responsibility Act of 2023 (FRA) related to the
reporting of work outcomes under the Temporary Assistance for Needy Families (TANF) program.
ACF is promulgating this rule as an interim final rule to ensure states and territories have sufficient
time to comply with data collection for fiscal year 2025.
DATES: This interim final rule (IFR) is effective on October 1, 2024. Comments on this IFR
must be received on or before [INSERT DATE 180 DAYS AFTER DATE OF PUBLICATION
IN THE FEDERAL REGISTER].
ADDRESSES: ACF encourages the public to submit comments electronically to ensure they are
received in a timely manner. You may submit comments, identified by Regulatory Information
Number (RIN) 0970-AD04, by any of the following methods:
•

Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for
submitting comments.

Instructions: All submissions received must include the agency name and RIN (0970-AD04) for
this

rulemaking.

All

comments

received

will

be

posted

without

change

to

https://www.regulations.gov,including any personal information provided.
We will not consider comments received beyond the 180-day comment period in modifying the
interim final rule. You may find the following suggestions helpful for preparing your comments:
•

Be specific;

•

Address only issues raised by the rulemaking in the interim final rule and the information
collections, not the changes to the statute itself;

•

Explain reasons for any objections or recommended changes;

•

Propose appropriate alternatives; and

•

Reference the specific section of the interim final rule being addressed.

You can obtain copies of the proposed collection of information and submit comments by emailing
infocollection@acf.hhs.gov. Identify all requests by the title of the information collection.
FOR FURTHER INFORMATION CONTACT: Lauren Frohlich, TANF Data Division, Office
of Family Assistance, ACF, at TANFdata@acf.hhs.gov or 202–401–9275. Deaf and hard of
hearing individuals may call 202–401–9275 through their chosen relay service or 711 between 8
a.m. and 7 p.m. Eastern Time.
SUPPLEMENTARY INFORMATION:
Table of Contents
I.
II.
III.

IV.

Background
Themes from Consultation and Research
A. Workforce System Alignment
B. Equity
Regulations
A. Definition of Exit
B. Work Outcomes Data Sources
C. Federal Matching for Calculating Work Outcomes of TANF Exiters
D. State-Level Matching for the Supplemental Work Outcomes Report
E. Secondary School Diploma or its Recognized Equivalent Attainment Rate
Justification for Interim Final Rule

V.

Collection of Information Requirements
A. Reports
B. Request for Feedback
C. Review and Approval of the Information Collection
Regulatory Review and Analysis

VI.

I. Background
The Fiscal Responsibility Act (FRA) of 2023, Public Law 118-5, requires each state, in
consultation with the Secretary of the Department of Health and Human Services (HHS), to collect
and report information relating to work outcomes measures for work-eligible individuals in the
Temporary Assistance for Needy Families (TANF) Program. Section 304 of the legislation
requires HHS to issue regulations implementing these new requirements. It states, “in order to
ensure nationwide comparability of data, the Secretary, after consultation with the Secretary of
Labor and with States, shall issue regulations governing the reporting of performance indicators
under this subsection.”
We are updating the existing TANF data regulations (45 CFR part 265, Data Collection
and Reporting Requirements) to reflect the new reporting requirements. “Each state … shall
collect and submit to the Secretary the information necessary for each indicator….” Section 304.
“State” is defined to mean “the 50 States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa.”
42 U.S.C. 619 (5). States and territories must begin reporting on those requirements in fiscal year
(FY) 2025. For the remainder of the preamble, we will use the term “states” to refer to states and
territories. These provisions do not apply to Tribal TANF programs.
Section 304 of the FRA specifies that to ensure nationwide comparability of data, all states
must collect and submit “the information necessary” to determine four indicators of performance.
These are:
•

Employment Rate - 2nd Quarter After Exit: The percentage of individuals who were workeligible individuals as of the time of exit from the program, who are in unsubsidized

employment during the second quarter after the exit;
•

Employment Retention Rate - 4th Quarter After Exit: The percentage of individuals who
were work-eligible individuals as of the time of exit from the program who were in
unsubsidized employment in the second quarter after the exit, who are also in unsubsidized
employment during the fourth quarter after the exit;

•

Median Earnings - 2nd Quarter After Exit: The median earnings of individuals who were
work-eligible individuals as of the time of exit from the program, who are in unsubsidized
employment during the second quarter after the exit; and

•

Secondary School Diploma or its Recognized Equivalent Attainment Rate: The percentage
of individuals who have not attained 24 years of age, are attending high school or enrolled
in an equivalency program, and are work-eligible individuals or were work-eligible
individuals as of the time of exit from the program, who obtain a high school degree or its
recognized equivalent while receiving assistance under the state program funded under this
part or within one year after the exit.
Further, the statute required HHS to consult with states and the Department of Labor (DOL)

before issuing regulations. In response, HHS engaged in consultation including issuing a Request
for Information (RFI) (88 FR 82902, November 27, 2023) providing states and the general public
with an opportunity to provide input, hosted listening sessions with state TANF leadership and
data leads, held meetings with the DOL and the Department of Education (ED), and had
discussions with practitioners and researchers as part of the Workforce IT Support Center Steering
Committee and the National Association of Welfare Research Statistics annual conference.
Through these discussions, we identified promising practices and recommendations for policy
options.
II. Themes from Consultation and Research
Written responses to ACF’s RFI included responses from state TANF agencies and social

services departments, national associations that represent state and county human services
agencies, and a small number of advocacy groups. The use of “state” in the summary of comments
below refers to both states who responded directly and associations who collected comments and
responded on behalf of member states.
A. Workforce System Alignment
TANF’s new statutory work outcomes measures are similar to the performance measures
established by the Workforce Innovation and Opportunity Act of 2014 (WIOA). DOL and ED
shared lessons learned from implementing WIOA that inform our implementation of TANF’s work
outcomes measures, such as factors impacting the implementation timeline and data quality across
sources. States also shared their experiences with WIOA and several respondents encouraged ACF
—in partnership with DOL— to support opportunities for state workforce and human services
agencies to engage in peer learning and information sharing around the new measures. They
requested ACF, where possible, foster the alignment through shared definitions, data sources, and
report timeframes.

They noted that supporting alignment with WIOA outcome reporting

strengthens collaboration between TANF and the broader workforce system, which will yield
operational efficiencies across programs, identification of promising practices, a more clientcentered culture, and improved service delivery.
We appreciate the time and attention that respondents gave to reviewing the RFI and
preparing their comments. This IFR seeks to make the new reporting requirements as useful as
possible for program improvement, considers the challenges of implementation, and provides
flexibility for states when possible.
B. Equity
The Office of Family Assistance (OFA) is committed to improving the equitable
administration of all OFA programs for the children and families we serve. In the RFI, we asked
in what ways equity should be considered when implementing work outcome measures.

Respondents expressed gratitude for our consideration of equity in the implementation of
the work outcomes measures.

All noted the advantages of collecting and reporting data

disaggregated by race, ethnicity, age, disability, and other demographic characteristics or
geography.
We appreciate the importance of understanding outcome disparities in the TANF program,
and we are committed to providing increased technical assistance to states on how to use their own
data to understand outcomes disparities in the TANF program so that they can better ensure equity
throughout the system.
Respondents also made suggestions for practices in the context of work outcomes that
could support equity. We remain committed to supporting states as they identify and explore
meaningful ways of addressing disparities and ensuring equity.
III. Regulations
The following discussion provides information on the changes we are making in 45 CFR
part 265. We discuss how we will operationalize the statutory changes enacted in the FRA related
to the reporting of work outcomes under the TANF program.
In § 265.2, “What definitions apply to this part?”, we added definitions of “exit” and
“unsubsidized employment” for the purpose of calculating the Work Outcomes of TANF Exiters
Report and the Secondary School Diploma or its Recognized Equivalent Attainment Rate. We
also defined “secondary school diploma” and its “recognized equivalent.”
We added two new reporting requirements. States are required to submit the data required
for the Work Outcomes of TANF Exiters Report quarterly and the Secondary School Diploma or
its Recognized Equivalent Attainment Rate annually. The regulation also includes the option for
states to voluntarily submit their own calculated work outcomes measures. The regulation details
what to include in the supplemental report for states who choose to submit one. In addition to
submitting the Work Outcomes of TANF Exiters Report, any state that does not have an

Unemployment Insurance program and thus is currently unable to submit quarterly wage data to
the ACF-designated wage match source will be required to submit the Supplemental Work
Outcomes Report.
Other revisions:
•

Section 265.1 What does this part cover? - replaced outdated reference to section 413
(rankings of State TANF programs) with section 411(f).

•

Section 265.3 What reports must the State file on a quarterly basis? - added quarterly report
Work Outcomes of TANF Exiters Report and details of (1) Employment Rate - 2nd Quarter
After Exit; (2) Employment Retention Rate - 4th Quarter After Exit; and (3) Median
Earnings - 2nd Quarter After Exit.

•

Section 265.4 When are quarterly reports due? - added Work Outcomes of TANF Exiters
Report

•

Section 265.5 May States use sampling? - clarified that sampling is not allowed for either
Work Outcomes of TANF Exiters Report or Secondary School Diploma or its Recognized
Equivalent Attainment Rate and moves that clause to paragraph (d).

•

Section 265.6 Must States file reports electronically? - added Work Outcomes of TANF
Exiters Report, Secondary School Diploma or its Recognized Equivalent Attainment Rate,
and Supplemental Work Outcomes Report.

•

Section 265.7 How will we determine if the State is meeting the quarterly reporting
requirements? - added requirements for Work Outcomes of TANF Exiters Report.

•

Section 265.9 What information must the State file annually? - added paragraphs (f), the
Secondary School Diploma or its Recognized Equivalent Attainment Rate, and (g),
Supplemental Work Outcomes Report.

•

Section 265.10 When are annual reports due? – clarified due dates of all annual reports in
§ 265.9.

A. Definition of Exit
The work outcomes measures depend on a definition of what it means to “exit” the TANF
program. The legislation defines “exit” as, “with respect to a State program funded under this part,
ceases to receive assistance under the program funded by this part.”
We believe, and states concurred during consultation, that further clarification of what it
means to “exit” the TANF program is necessary to ensure consistency across states’ interpretations
of the exiting population. Research studies and state respondents warned about the issue of
“churn,” in which individuals and families cycle on and off the TANF caseload due to temporary
jobs, shifting life circumstances, sanctions, or terminations of assistance for not meeting program
administrative requirements. We note that TANF “leavers” studies from the early 2000s often
defined a “leaver” as someone who has left cash assistance for at least two months, while WIOA
defines a “common exit” as a participant not receiving DOL-administered services for at least 90
days.1 DOL, states, researchers, and advocacy organizations all recommended that the TANF work
outcomes measures align with WIOA’s performance measures as much as possible, in order to
support coordination between TANF and WIOA programs and their shared participants. That
approach is supported by the statutory language requiring the Department to consult with DOL.
For these reasons, and to account for the impact of churn, we are defining “exit” as a family having
not received TANF assistance for at least 90 days. We are using “family” in the definition to
account for the cases where, for example, due to sanction, the state removes the needs of the workeligible individual from the assistance payment while continuing to provide assistance to the
family. In other words, a work-eligible individual will be included as an exiter in these measures
only when their family ceases to receive assistance, and will not meet the definition of an exiter
when the needs of the work-eligible individual are removed from the assistance payment but the
family continues to receive assistance. An individual in the family must have been “a work-

See https://aspe.hhs.gov/ tanf-leavers-applicants-caseload-studies and https://www.dol.gov/ agencies/ eta/
performance/ definitions.
eligible individual,” as defined in 45 CFR 261.2(n)(1), in their last month of assistance.
Multiple respondents to the RFI stressed the importance of taking into account the reasons
someone would exit TANF. Some individuals may have been taken off TANF because of a
sanction for noncompliance with work activities, while others obtained jobs or moved out of state.
States are currently required to report to ACF on the reasons for case closure in section two (2) of
the TANF Data Report (ACF-199). However, states interpret and use the reporting categories of
reasons for case closure inconsistently. For instance, on average, states reported that 34 percent of
closed cases were closed due to “other/unknown” reasons, but across states that percentage ranged
from 5 to 98 percent in FY 2022.2 While OFA has decided not to use this IFR to modify the data
reporting elements for case closure, we encourage states to improve the quality of their reporting
for the existing data element in the TANF Data Report (ACF-199).

OFA will include

recommendations in guidance to states on how to improve the quality of this data element.
We note that some states may move individuals out of the TANF program and into separate
state programs (funded by maintenance-of-effort funds) or solely state-funded programs (not
reported as maintenance-of-effort). For some states, these may be distinctly different programs,
while for other states the difference may just be the funding source. The statute clearly states “with
respect to State program funded under this part” which refers only to the TANF program, and not
separate state programs or solely state-funded programs. Therefore, when considering who exited
TANF for this data collection, states should include those work-eligible individuals who were
moved to separate state programs or solely-state funded programs and have not received TANFfunded assistance in at least 90 days.
B. Work Outcomes Data Sources
States are proud of the work they are doing to improve TANF outcomes. Some states are

Characteristics and Financial Circumstances of TANF Recipients, Fiscal Year 2022, Office of Family Assistance,
Administration for Children and Families (https://www.acf.hhs.gov/ofa/data/characteristics-and-financialcircumstances-tanf-recipients-fiscal-year-2022).
already collecting and studying data for employment, retention, and income and are eager to share
the results and best practices. These states explained both the benefits and drawbacks of the
systems they use. Many included specific timelines, charts, and other visuals to depict the level
of complexity involved. Others offered their templates and experience to ACF as we develop
guidance and technical assistance products.
States that have already implemented similar measures rely on wage data for administration
of state programs, using a combination of sources including state departments of labor, state
unemployment insurance wage records, the State Wage Interchange System (SWIS), and the
National Directory of New Hires (NDNH).3
Others expressed trepidation around the new measures. Most notably, they expressed
concern around the resources and time required to implement data sharing agreements, system
changes, and new processes. These commenters welcome a national approach that allows them to
maintain their focus on program improvement.
Nearly all respondents noted the value in standard measures and the utility of having a
centralized data match at the Federal level to meet the requirement of “nationwide comparability
of data” in section 304 of the FRA. They also noted that the employment landscape can vary from
region to region and state to state. They requested that ACF provide appropriate context when
measures are published. Respondents noted macroeconomics (cost of living, unemployment rates,
geography, state minimum wage, impacts of natural disasters etc.), program design and policy
(county-administered versus state, benefit caps, political climate), and participant demographics
(sex, gender, race, income, family status, disability, formerly incarcerated) as some of the factors
that inform the outcome measures.

State Welfare (“TANF” or “IV-A”) Agencies are authorized to request NDNH information to carry out state
responsibilities under programs funded under part A of title IV of the Social Security Act, specifically 42 U.S.C.
653(j)(3). Section 304 of the FRA amended section 411 of the Social Security Act (42 U.S.C. 611) to specify that
each state, in consultation with the Secretary of HHS, shall collect and submit the information necessary for the
reporting of work outcomes for fiscal year 2025 and each fiscal year thereafter.
Taking into consideration the comments we received, ACF is instituting a two-pronged
approach: Federal matching for calculating Work Outcomes of TANF Exiters and a Supplemental
Work Outcomes Report. Consultations with states and DOL, ED, and others informed our twopronged approach and raised several important considerations. States expressed concerns about
the implementation timeline if state-level data sharing agreements were needed, but other states
were concerned about the lag in results with a Federal match that would make the outcomes less
useful. ACF heard from various stakeholders that, while a Federal-level match with the NDNH
has the benefit of reporting wages earned across state lines and from Federal employment, statelevel matches could include other sources of wage data such as self-employment or gig work. Each
data source and methodology has its own strengths and shortcomings, and these new measures
provide an opportunity for learning about the best tools for assessing and improving outcomes for
TANF exiters. More information about Federal matching for calculating Work Outcomes of
TANF Exiters and the Supplemental Work Outcomes Report is below.
C. Federal Matching for Calculating Work Outcomes of TANF Exiters
For the first three statutory measures (i.e., work outcomes of TANF exiters), states will
report information to ACF that is necessary to calculate the measures of work outcomes of TANF
exiters at the Federal level. Specifically, states will be required to submit Social Security Numbers
(SSNs) of all work-eligible individuals who exit TANF in a given quarter on a quarterly basis.
ACF will then match those SSNs with quarterly wage records in the NDNH, which is a national
database of wage and employment information on most American workers administered by ACF’s
Office of Child Support Services.4 In FY 2022, over 752 million quarterly wage records were
submitted to the NDNH.5 ACF will use these matched results to compute the first three work
outcomes measures on behalf of states. This approach will allow for standardized measures and

For more detail on the NDNH:
https://www.acf.hhs.gov/sites/default/files/documents/ocse/a_guide_to_the_national_directory_of_new_hires.pdf.
5 FY 2022 Preliminary Data Report and Tables from Table P-97 (https://www.acf.hhs.gov/css/policy-guidance/fy2022-preliminary-data-report-and-tables).
will not require states to initiate new data-sharing agreements at the state level. We understand
that Guam does not currently have an Unemployment Insurance program and therefore does not
submit quarterly wage data to the NDNH. Guam will still need to submit the Work Outcomes of
TANF Exiters report so that ACF is able to capture outcomes of individuals who find work outside
of Guam after exiting the Guam TANF Program. In addition, any state, like Guam, that does not
have an Unemployment Insurance program and thus is currently unable to submit quarterly wage
records to the ACF-designated wage match source will be required to submit the Supplemental
Work Outcomes Report. That report will be used to calculate the same performance measures as
those in the Work Outcomes of TANF Exiters Report. We will work closely with Guam to assess
the data and provide technical assistance to support calculating the performance measures.
The Work Outcomes of TANF Exiters measures have various operational timelines. The
measures themselves specify employment and earnings at different intervals following exit.
Further, as noted above, the definition of “exit” includes a 90 day wait period. ACF will provide
subsequent guidance on and technical support regarding which “exiters” to include in each
quarterly data submission. ACF will run matches each quarter so that states will not need to track
or re-identify work-eligible individuals the second and fourth quarters after they exited TANF.
ACF will continue to explore how to share information gained from the Federal-level
match to make the data available to and useful for state TANF programs, in addition to satisfying
the reporting requirements of the FRA. This may involve providing preliminary match results to
states on a quarterly basis before the data have settled and been finalized.
D. State-Level Matching for the Supplemental Work Outcomes Report
Several states requested the option to provide additional data that would enrich the
outcomes generated from a centralized data match. The states that have systems and data-sharing
agreements in place believe those systems to be timelier and more comprehensive. Notably, some
states reported that they will continue to produce their own performance measure reports due not

only to local statutory requirements but also to support program partnership and continuous
improvement. ACF wants to empower states to analyze their own data for program improvement
and policy decision-making. To support this effort, these regulations establish an additional
Supplemental Work Outcomes Report to be submitted annually by interested states. This will
allow states that already have performance reporting infrastructure in place to provide calculated
outcomes measures results with alternative data sources. The report will include documentation
of data sources and methodology to assess validity and support ongoing learning and identification
of best practices. ACF will encourage this voluntary submission as a way for states and the Federal
government to promote and learn more about alternative data sources as compared to matching to
wage data at the Federal level. ACF will report on findings from the Supplemental Work
Outcomes Report as part of ongoing learning and context for state performance measures. This
report will be mandatory for any state, like Guam, that does not have an Unemployment Insurance
program and is thus unable to submit quarterly wage data to the ACF-designated wage match
source.

The Supplemental Work Outcomes Report also provides an avenue for continued

alignment with WIOA performance measures; states that have highly coordinated TANF and
workforce agencies could demonstrate the benefits of state-level data matching (potentially
through SWIS) and the addition of supplemental wage information, such as for those who are selfemployed or participate in gig work and are not systematically captured in quarterly wage records.
ACF is committed to providing technical assistance and support to states interested in developing
their own infrastructure to calculate work outcomes, including helping develop relationships
across state agencies, data system modifications, data sharing agreements, and data analysis
capacity. ACF began this work with the TANF Data Collaborative6 and plans to continue to find
innovative ways to support states as they focus on better outcomes for TANF recipients and exiters.

The TANF Data Collaborative was a 30-month pilot program that offered technical assistance and training to
support cross-disciplinary teams of staff at eight state and county TANF programs in the routine use of TANF and
other administrative data to inform policy and practice. Learn more about the program and participants here:
https://www.acf.hhs.gov/opre/report/tanf-data-collaborative-pilot-profiles-collection-data-analytics-projects-statecounty.
E. Secondary School Diploma or its Recognized Equivalent Attainment Rate
ACF has experience with TANF outcomes measures similar to the ones that the Work
Outcomes for TANF Exiters Report will capture, through the former High Performance Bonus
measures, 42 U.S.C. 603(a)(4), and more recently for performance measures that are reported as
part of the Congressional Budget Justification. However, ACF has little experience collecting
information related to the Secondary School Diploma or its Recognized Equivalent Attainment
Rate (hereafter Secondary School Diploma Attainment Rate) for TANF participants and exiters.
States reported to us that they also have little experience with this type of measure and anticipated
that it would be more difficult to implement.
The Secondary School Diploma Attainment Rate measure presents its own unique
challenges, and states have requested support for implementing this measure. Participant surveys
may be the most direct way to obtain the data; however, states requested technical assistance to
increase survey response rates. In addition, states want guidance for navigating the complex
network of educational systems and setting up data-sharing agreements with the various entities
involved.
We learned from our research, consultations, and the RFI that some states have existing
longitudinal databases and cross-department agreements that would be well-suited for calculating
these measures. Other states did not have this type of existing access and infrastructure. The ED,
DOL, and respondents to the RFI emphasized that there are multiple ways a person may earn a
secondary school diploma or recognized equivalent, including but not limited to adult
school/education, community college, or public or private high school within K-12 systems. Local
education agencies often have different geographical maps from TANF offices or workforce
investment boards. For some states, secondary school equivalency testing may be independent of
state government, while for others, such testing may be managed by state education agencies.
The wide range of structures and readiness for collecting information for this measure

across states led us to the decision to leave the data source selection up to the states, following
sub-regulatory guidance from ACF. ACF will provide thorough guidance and technical support
for the calculation of the rate, including who belongs in the numerator and denominator. States
must use universe-level data in their calculations, meaning that the rate should be based on the
entire population that meets the criteria and not a sample of that population.
ACF recognizes that the typical secondary academic calendar is at odds with the Federal
fiscal year and annual submission of the data for the Secondary School Diploma Attainment Rate.
This is further complicated by the range of timelines of the various data sources and tracking
individuals after exit. We note that the Secondary School Diploma Attainment Rate submission
is on a longer lag because of the nature and complexity of the data and the 1-year post-exit wait
period. ACF will provide guidance on and technical support regarding the reporting periods that
should be covered in a given annual report. We acknowledge states are only able to submit
information known to them at the time of reporting and commit to providing additional guidance
to manage the level of effort associated with tracking this small subset of TANF participants.
ACF intends to support states in finding innovative ways to collect this information. ACF
will ask for sources and methodology as part of the reporting to assess validity of the measure and
to support ongoing learning and identification of best practices. Our Federal partners have learned
a lot already from states’ implementation of WIOA’s credential attainment measure, which has
some helpful parallels.
IV. Justification for Interim Final Rule
The Administrative Procedure Act (APA) generally requires agencies to follow certain
procedures when promulgating rules. 5 U.S.C. 551 et seq. Under section 553(b)(B)) of the APA,
however, a notice of proposed rulemaking is not required when an agency, for good cause, finds
(and incorporates the finding and a brief statement of reasons in the rule issued) that notice and
public comment is impracticable, unnecessary, or contrary to the public interest. We find that

good cause exists because, under the specific circumstances here, it is impracticable to provide an
opportunity for notice and comment prior to issuing this rule.
Providing notice and comment before issuing this rule was impracticable because of the
limited time period following the statute’s enactment in June 2023 for ACF to consult with states
and DOL and then promulgate regulations with sufficient lead-time for states to make necessary
system changes to comply with the statutory reporting obligations beginning on October 1, 2024.
States will need to plan for, budget, and implement systems changes to comply with data collection
and reporting requirements for fiscal year 2025. This may require states to reallocate their budgets,
modify existing contracts, and/or enter into new ones, modify and/or enter into new data sharing
agreements, and create and/or modify systems for data collection. We are issuing an IFR so that
states have time to complete each of these necessary steps before the October 1, 2024, compliance
date.
It also was not practicable to provide notice and comment because we needed time to
consult with the DOL and with states, as required by section 304 of the FRA, prior to issuing
regulations. In addition to being statutorily mandated, the consultation period was necessary to
allow ACF to obtain state input on a number of technical questions before moving forward with
the rule making process. This technical information from states was key to the agency’s thinking
and approach around this rulemaking. Consultations with DOL and ED began in July 2023, just
one month after the statute was enacted, and have continued throughout the development of this
regulation.
The consultation period, described in greater detail in section II above, included a RFI
which was published on November 27, 2023. ACF had received 24 comments on the RFI by
January 11, 2024. The RFI outlined several possible approaches and factors that needed to be
considered and sought public comment. Those comments informed the approach set forth in this
IFR.

In addition to issuing the RFI, ACF met with states and conducted listening sessions
between September 2023 and January 2024. Almost all states, whether during listening sessions
or in response to the RFI, requested that ACF expedite the issuance of regulations and develop
guidance as soon as possible. Many respondents wrote that it will take several months or more to
set up the necessary infrastructure required to respond to the requirements of the FRA. States
specifically requested that the Department convey as soon as possible how it is interpreting
Congress’ definition of the statutory term “exit” so that states could provide the specifications
necessary to their contractors or in-house developers so that they could begin the task of system
changes. In anticipation of the implementation, some states have initiated system changes without
the definition of “exit,” whereas others are waiting on guidance so that they do not risk costly
updates that need to be modified. Further delay of the regulation could lead to states applying the
statute ineffectively or inconsistently, which could ultimately reduce the data quality and
comparability of the measures. Our goal has been to issue regulations as soon as possible so that
states can make sound decisions on the allocation of resources and operationalize plans in time for
the fiscal year 2025 reporting deadlines.
We believe that issuing an IFR is in the interest of the entities that must meet the
reporting requirements, and the effective date for this IFR is justified and reasonable. Although
this IFR is being published with an effective date of October 1, 2024, we encourage interested
parties to provide comments through [INSERT DATE 180 DAYS AFTER DATE OF
PUBLICATION IN THE FEDERAL REGISTER], so that we may have the benefit of public
participation in advance of issuing a final rule. ACF will modify the IFR’s provisions if
warranted by public comments. As we implement the IFR, we welcome public comments on
any relevant implementation issues, and we will take those comments into consideration in
developing the final rule.
V. Collection of Information Requirements

The Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et seq., provides that a Federal
agency generally cannot conduct or sponsor a collection of information, and the public is generally
not required to respond to an information collection, unless it is approved by the Office of
Management and Budget (OMB) under the PRA and displays a currently valid OMB Control
Number. In addition, notwithstanding any other provisions of law, no person shall generally be
subject to penalty for failing to comply with a collection of information that does not display a
valid Control Number. See 5 CFR 1320.5(a) and 1320.6.
This interim final rule includes the following new information collections.
•

Work Outcomes of TANF Exiters Report

•

Secondary School Diploma or its Recognized Equivalent Rate

•

Supplemental Work Outcomes Report

As required by PRA, we will submit the proposed information collection(s) to OMB for
review and approval.
A. Reports
Work Outcomes of TANF Exiters Report: Quarterly, states will be required to submit
Social Security numbers (SSNs) of all work-eligible individuals who exit TANF in a given
quarter. Each state must file the report within 45 days following the end of the quarter (QE). The
report must contain the SSNs of all individuals who are confirmed to have exited during the
reporting period. An individual’s exit date is confirmed when 90 days have elapsed since the
participant last received assistance. States submit SSNs 45 days after the QE in which their exit
date was confirmed. For example:
An individual exits on November 23, 2024 (FY 2025, Quarter [Q]1). For the state to
confirm the exit date, 90-days must elapse since the participant last received
assistance. The exit date is confirmed on February 21, 2025 (FY 2025, Q2). The
individual’s SSN is included as an exiter in the quarter ending (QE) March 31, 2025 report
(FY 2025, Q2), covering reporting period October 1, 2024 – December 31, 2024 (FY 2025,
Q1).
ACF will then match the SSN with quarterly wage records in the NDNH to obtain records
from two quarters after the individual’s exit (FY 2025, Q3) through four quarters after the
individual’s exit (FY 2026, Q1). ACF will use the matched results to compute the

measures on behalf of states: Employment Rate - 2nd Quarter After Exit; Employment
Retention Rate - 4th Quarter After Exit; and Median Earnings - 2nd Quarter After Exit.
Secondary School Diploma Attainment Rate: Annually, states will be asked to submit
their calculated rate following the definitions and formula set by ACF. The report must include
documentation of methodology and data sources.
Supplemental Work Outcomes Report: Annually, states have the option to submit the
state’s calculation of the first three work outcomes, following the definitions and formulas set by
ACF. The report must include documentation of methodology and data sources. Any state like
Guam that does not have an Unemployment Insurance program and thus is currently unable to
submit quarterly wage records to the ACF-designated wage match source will be required to
submit the Supplemental Work Outcomes Report.
B. Request for Feedback
In compliance with the requirements of Section 3506(c)(2)(A) of the PRA, the ACF is
soliciting public comment on the specific aspects of the information collection described
above.

You

can

request

copies

of

the

proposed

collections

by

emailing

infocollection@acf.hhs.gov. ACF requests comments on these new collections, including but not
limited to the quality, utility, and clarity of the information to be collected and the estimated time
to complete.
ACF is particularly interested in feedback on the estimated time to complete each of the
new information collections. Currently, ACF is estimating the time to complete as follows:

Annual Estimated
Number of
Respondents
Total Number of
Responses Per
Respondent Each
Year
Average Burden
Hours per Response

Work Outcomes of
TANF Exiters
Report
Secondary School
Diploma Attainment
Rate
Supplemental Work
Outcomes Report

1

16

30

Total Annual Burden
Hours

5400

In estimating time to complete, you should include the time associated with activities
necessary to complete the requests. This should include the time associated with the following
example activities (as applicable):
•

Reviewing instructions

•

Compiling information or materials to respond

•

Acquiring, installing, and utilizing technology and systems

•

Updating current technology and systems

•

Completing and reviewing collected information

•

Finalizing and sending information
Submit comments to infocollection@acf.hhs.gov by [INSERT DATE 60-DAYS AFTER

DATE OF PUBLICATION IN THE FEDERAL REGISTER]. Consideration will be given to
comments and suggestions submitted within the timeframe specified.
C. Review and Approval of the Information Collection
The comments received in response to this notification will fulfill the requirement for a 60day comment period in compliance with the requirements of section 3506(c)(2)(A) of the
PRA. We will submit an information collection request for these new proposed collections to
OMB for review and approval following consideration of public comment. These requirements
will not become effective until approved by OMB.
VI. Regulatory Review and Analysis
We have examined the impacts of the final rule under Executive Order 12866, Executive
Order 13563, Executive Order 14094, the Regulatory Flexibility Act (5 U.S.C. 601–612), the
Congressional Review Act/ Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 801,
Pub. L. 104–121), and the Unfunded Mandates Reform Act of 1995 (Pub. L. 104–4).

Executive Orders 12866, 13563, and 14094 direct us to assess all benefits, costs, and
transfers of available regulatory alternatives and, when regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic, environmental, public health
and safety, and other advantages; distributive impacts; and equity). Rules are “significant” under
Executive Order 12866, section 3(f)(1) (as amended by Executive Order 14094), if they “have an
annual effect on the economy of $200 million or more (adjusted every 3 years by the Administrator
of [the Office of Information and Regulatory Affairs (OIRA)] for changes in gross domestic
product); or adversely affect in a material way the economy, a sector of the economy, productivity,
competition, jobs, the environment, public health or safety, or State, local, territorial, or tribal
governments or communities.” This interim final rule implements the data collection and reporting
requirements of section 304 of the Fiscal Responsibility Act of 2023, which could entail a small
incremental increase in time spent by state governments for these activities. Thus, this interim
final rule is not a significant regulatory action under Executive Order 12866, section 3(f)(1).
Because this rule is not likely to result in an annual effect on the economy of $100 million
or more or meet other criteria specified in the Congressional Review Act/Small Business
Regulatory Enforcement Fairness Act, this interim final rule does not fall within the scope of 5
U.S.C. 804(2).
The Regulatory Flexibility Act requires us to analyze regulatory options that would
minimize any significant impact of a rule on small entities. The Secretary certifies that this interim
final rule will not result in a significant impact on a substantial number of small entities. The
primary impact is on state governments, which are not considered small entities under the RFA.
The Unfunded Mandates Reform Act of 1995 (UMRA) generally requires that each agency
conduct a cost-benefit analysis, identify and consider a reasonable number of regulatory
alternatives, and select the least costly, most cost-effective, or least burdensome alternative that
achieves the objectives of the rule before promulgating any proposed or final rule that includes a

Federal mandate that may result in expenditures of more than $100 million (adjusted for inflation)
in at least one year by state, local, and tribal governments, or by the private sector. The current
threshold after adjustment for inflation using the Implicit Price Deflator for the Gross Domestic
Product is $183 million, reported in 2023 dollars. This interim final rule will not result in an
unfunded mandate in any year that meets or exceeds this amount.
List of Subjects in 45 CFR Part 265
Employment, Grant programs-social programs, Public assistance programs, Reporting and
recordkeeping requirements.
For the reasons discussed in the preamble, the OFA amends 45 CFR part 265 as follows:
PART 265—DATA COLLECTION AND REPORTING REQUIREMENTS
1. The authority citation for part 265 is revised to read as follows:
Authority: 42 U.S.C. 603, 605, 607, 609, 611, and 613.
2. Amend § 265.1 by:
a. Revising paragraph (a);
b. Removing footnote 1 from paragraph (b) introductory text;
c. Revising paragraphs (b)(2) and (3); and
d. Adding paragraphs (b)(4) and (5).
The revisions and additions read as follows:
§ 265.1 What does this part cover?
(a) This part explains how we will collect the information required by section 411(a) of the
Act (data collection and reporting); the information required to implement section 407 of the Act
(work participation requirements), as authorized by section 411(a)(1)(A)(xii); the information

required to implement section 409 (penalties), section 403 (grants to States), section 405
(administrative provisions), section 411(b) (report to Congress), and section 411(f) (reporting
performance indicators); and the data necessary to carry out our financial management and
oversight responsibilities.
(b) * * *
(2) The expenditure data in the quarterly TANF Financial Report (or, as applicable,
the Territorial Financial Report);
(3) The definitions and other information on the State's TANF and MOE programs
that must be filed annually;
(4) The definitions and other information necessary for the Work Outcomes of
TANF Exiters Report; and
(5) The definitions and other information necessary for the Secondary School
Diploma or its Recognized Equivalent Attainment Rate.
*****
3. Amend § 265.2 by:
a. Revising paragraph (a); and
b. Adding paragraphs (c) through (e).
The revision and additions read as follows:
§ 265.2 What definitions apply to this part?
(a) Except as provided in paragraphs (b) through (e) of this section, the general TANF
definitions at §§ 260.30 through 260.33 and the definitions of a work-eligible individual and the
work activities in § 261.2 of this chapter apply to this part.

*****
(c) For purposes of the Work Outcomes of TANF Exiters Report and the Secondary School
Diploma or its Recognized Equivalent Attainment Rate, exit is the date that a family with a workeligible individual ceases to receive assistance (as defined in § 260.31) from the TANF program.
The last day of assistance cannot be determined until 90 days have elapsed since the participant
last received assistance.
(d) For purposes of the Work Outcomes of TANF Exiters Report, unsubsidized
employment means full- or part-time employment in the private or public sector after exiting the
TANF program.
(e) For purposes of the Secondary School Diploma or its Recognized Equivalent
Attainment Rate:
(1) A secondary school diploma is a “regular high school diploma” as that term
is defined in 21 U.S.C. 7801(43), the Elementary and Secondary Education Act of 1965
(ESEA), as amended by the Every Student Succeeds Act (ESSA).
(2) A recognized equivalent to a secondary school diploma is a certification
recognized by a State that signifies that a student has completed the State’s requirements
for a high school education.
4. Amend § 265.3 by:
a. Revising paragraph (a)(1); and
b. Adding paragraph (g).
The revision and addition read as follows:
§ 265.3 What reports must the State file on a quarterly basis?
(a) * * *

(1) Each State must collect on a monthly basis, and file on a quarterly basis, the
data specified in the TANF Data Report, the TANF Financial Report (or, as applicable, the
Territorial Financial Report), and the Work Outcomes of TANF Exiters Report.
*****
(g) Work Outcomes of TANF Exiters Report. Each State must file the Social Security
numbers of all work-eligible individuals, as defined in § 261.2(n), who have exited the program,
as defined in § 265.2(b). This information will be used for calculating the following Work
Outcomes performance indicators:
(1) Employment Rate - 2nd Quarter After Exit: the percentage of individuals who
were work-eligible individuals as of the time of exit from the program, who are employed
during the second quarter after the exit;
(2) Employment Retention Rate - 4th Quarter After Exit: the percentage of
individuals who were work-eligible individuals as of the time of exit from the program
who were employed in the second quarter after the exit, who are also employed during the
fourth quarter after the exit; and
(3) Median Earnings - 2nd Quarter After Exit: the median earnings of individuals
who were work-eligible individuals as of the time of exit from the program, who are
employed during the second quarter after the exit.
5. Amend § 265.4 by adding paragraph (d) to read as follows:
§ 265.4 When are quarterly reports due?
*****
(d) Each State must file the Work Outcomes of TANF Exiters Report within 45 days
following the end of the quarter.

6. Amend § 265.5 by:
a. Removing the last sentence of paragraph (a); and
b. Adding paragraph (d).
The addition reads as follows:
§ 265.5 May States use sampling?
*****
(d) States may not use sampling to report expenditure data, data included in the Work
Outcomes of TANF Exiters Report, or data included in the Secondary School Diploma or its
Recognized Equivalent Attainment Rate.
7. Revise § 265.6 to read as follows:
§ 265.6 Must States file reports electronically?
Each State must file all reports (i.e., the TANF Data Report, the TANF Financial Report
(or, as applicable, the Territorial Financial Report), the SSP-MOE Data Report, the Work
Outcomes of TANF Exiters Report, and the Secondary School Diploma or its Recognized
Equivalent Attainment Rate) electronically, based on format specifications that we will provide.
8. Amend § 265.7 by:
a. Revising paragraph (a);
b. Redesignating paragraphs (e) and (f) as paragraphs (f) and (g); and
b. Adding new paragraph (e).
The revision and addition read as follows:
§ 265.7 How will we determine if the State is meeting the quarterly reporting requirements?

(a) Each State's quarterly reports (the TANF Data Report, the TANF Financial Report (or
Territorial Financial Report), the SSP-MOE Data Report, and the Work Outcomes of TANF
Exiters Report) must be complete and accurate and filed by the due date.
*****
(e) For the Work Outcomes of TANF Exiters Report, “complete and accurate report”
means that:
(1) The reported data accurately reflect information available to the State in case
records, and automated data systems;
(2) The State reports data on all applicable elements (i.e., no data are missing); and
(3) The State reports universe data on all work eligible individuals who exited
TANF in a particular quarter.
*****
9. Amend § 265.9 by:
a. Removing footnote 7 from paragraph (c)(9); and
b. Adding paragraphs (f) and (g).
The additions read as follows:
§ 265.9 What information must the State file annually?
* * ***
(f) Each State must submit the percentage of individuals who have not attained 24 years of
age, are attending high school or enrolled in an equivalency program, and are work-eligible
individuals or were work-eligible individuals as of the time of exit from the program, who obtain
a high school degree or its recognized equivalent while receiving assistance under the State

program funded under this part or within one year after the individuals exit from the program. The
Secondary School Diploma or its Recognized Equivalent Attainment Rate report must include
methodology and documentation of data sources.
(g) On a voluntary basis, a State may also submit calculated work outcomes measures that
follow the definitions of the Work Outcomes of TANF Exiters (as defined in § 265.3(g)) based on
alternative data sources. The report must include documentation of data sources. In addition to
the Work Outcomes of TANF Exiters Report, this Supplemental Work Outcomes Report is
mandatory for any State that is unable to submit quarterly wage data to the ACF-designated wage
match source.
10. Revise § 265.10 to read as follows:
§ 265.10 When are the annual reports due?
The annual reports required by § 265.9 are due 45 days after the end of the fiscal year.


Xavier Becerra,
Secretary,
Department of Health and Human Services.

[FR Doc. 2024-13865 Filed: 6/27/2024 8:45 am; Publication Date: 6/28/2024]