NJPP and Anti-Poverty Network Unveil New Report on Ways to Reduce Child Poverty

For Immediate Release

TRENTON, NJ (April 13, 2020) – Far fewer families living in poverty receive basic assistance today than when Temporary Assistance for Needy Families (TANF) was established in 1996, according to a new report released today by New Jersey Policy Perspective (NJPP). The report release, streamed on Facebook Live, coincided with the passage of a new bill sponsored by Senate President Pro Tempore M. Teresa Ruiz and Senator Joe Vitale to expand and improve WorkFirst NJ.

“Despite New Jersey being one of the wealthiest states in the nation, the number of families living in poverty has remained largely the same,” said Ray Castro, Health Policy Director at New Jersey Policy Perspective and report author. “That is why it is so alarming that far fewer families receive basic assistance today than in 1996. This is a direct result of punitive federal and state policies that perpetuate rather than alleviate poverty — but that will soon change thanks to the work of Senator Ruiz and anti-poverty advocates.”

The NJPP report, Promoting Equal Opportunities for Children Living in Poverty, finds that the number of families in poverty receiving TANF benefits in New Jersey has declined by 91 percent since the program was created in 1996 despite the number of families living in poverty remaining about the same. In total, 94,700 New Jersey families with children live in poverty, including 264,000 children.

“WorkFirst New Jersey, the state’s Temporary Assistance to Needy Families (TANF) program, has historically been punitive towards our poorest families,” said Renee Koubiadis, Executive Director of the Anti-Poverty Network of New Jersey (APN). “As a result of the harmful policies established in the program and without any significant changes in the last twenty years, this critical safety net has been disappearing with steep declines in enrollment.”

Due to discrimination in housing, employment, and education, Black and Hispanic children in New Jersey are more than three times more likely to live in poverty than white kids, according to the report. As a result, approximately 8 in 10 New Jersey children receiving TANF are either Black or Hispanic.

“As a result of historic and structural racism, two thirds of children in poverty are Black and Hispanic, and many of them are not getting assistance through TANF,” Koubiadis added. “With the COVID-19 public health crisis and its current and future impacts, now is the time to reform this key program so that it provides the supports needed to lift families out of poverty and help poor children and their parents truly thrive.”

Despite recent increases to TANF benefit levels, New Jersey still ranks only 32nd in the nation in TANF benefits when housing costs are considered. The current level of TANF benefits is only one-third of the federal poverty level.

A new bill sponsored by Senators Teresa Ruiz and Joe Vitale would expand and improve the Work First New Jersey Program by increasing benefits to ensure no families or individuals remain in deep poverty.

“It is crucial that we fix the system so that our public assistance programs are focused on lifting individuals out of poverty, placing them on a path towards self sustainability and ensuring a smooth transition as they shift towards independence,” said Senator Teresa Ruiz. “I am grateful for all that NJPP has done to start this conversation and I look forward to working together on additional legislation to address the concerns highlighted in their report. This has been a pressing issue for some time and I am encouraged that we are finally taking the steps necessary to enact change.”

The bill, S2329, was introduced last Thursday and passed in the Senate on Monday morning. In addition to raising WorkFirstNJ benefits, the bill would also expand what activities fulfill the work requirement to include internships, job training and others that assist in obtaining better, more sustainable employment. NJPP and APN were joined on the press call by Tanisha Garner, a resident of Newark and entrepreneur who previously utilized WorkFirst NJ.

“As a college graduate and divorced mother of three, there was a time when I received TANF and participated in WorkFirst New Jersey,” said Newark resident and former TANF consumer Tanisha Garner. “It didn’t provide an opportunity and a platform to become stable with skills, training, and a permanent job. So I became an entrepreneur and created my jewelry-making business called Chozin Designs.”

“By expanding eligibility for TANF, raising benefit levels to account for New Jersey’s cost of living, and expanding education and training opportunities for parents, Senator Ruiz’s bill will help reduce child poverty and promote economic security in every corner of the state,” Castro added. “A boost in direct financial assistance gives families needed flexibility to use the income in the ways that best help their household. This means rent, diapers, medicine, clothing, bus fare, school supplies, utility payments, car repairs, and more.”

Read the full NJPP report here. 

Watch the video press call here. 

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