This week, ProPublica, together with USA Today, reported that nearly half of all states have failed to apply for federal stimulus dollars set aside to help low-income families. However, our story lacked one important detail: a list of which states have applications pending and which states have so far chosen to avoid the program. The reason for that omission is a story in itself—one that underlines the fact that the Obama administration's promise of greater transparency in government is easier made than kept.
The stimulus money in question is a $5 billion supplement to a program called Temporary Assistance for Needy Families or TANF, introduced in 1997 to help families on public assistance. States can use the money to offset the cost of their increased TANF caseloads, to help pay for subsidized make-work programs or to offer one-time payments to families in need.
Economists applaud giving money to low income families because they're more likely to spend it than save it, which gets money into the economy quickly. But before the program can succeed, states must first apply for the money, which requires that they put up 20 percent of the cost.
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