Diversion Cash Assistance

A layoff, an eviction notice, or a broken-down car can leave a family short on cash, even when the parent is working or about to start a job. A regular monthly TANF benefit may not be enough to address a one-time emergency.

In response, some state governments have implemented Diversion Cash Assistance (DCA) funded by the Temporary Assistance for Needy Families (TANF) program as a positive alternative to going on welfare.

As the name implies, diversion cash assistance diverts eligible applicants or recipients from receiving ongoing TANF benefits by providing a lump-sum cash payment.

Diversion payments generally are equal to several months’ benefits, ranging from one month in Minnesota to a year’s worth in Tennessee (roughly $4,600). Three months is the most common, as in Idaho (about $900). They usually are offered as a one-time payment in place of extended cash benefits.

Here are some examples of how diversion payments can help families meet temporary emergencies:

A single mother who is laid off from her job can use “diversion” payment to cover her rent and utilities while she looks for a new job.
A family that is facing eviction may use “diversion” assistance to pay their rent and avoid being homeless.
A single parent who is struggling to pay for child care can use “diversion” payment to pay for child care so that the parent can go to work.

How state diversion programs work?

In states with diversion programs, different methods are being used to determine the maximum diversion payment, resulting in different benefit amounts by state.

The following are some of the methods used:

Multiple of the maximum monthly benefit.

This method calculates the maximum diversion payment as a multiple of the maximum monthly benefit the family would have received in monthly TANF benefits.

For example, in Georgia, the maximum monthly benefit for a family of three is $280. If the state uses a multiple of 4, the maximum diversion payment would be $1,120.

Fixed benefit amount.

This method provides a fixed benefit amount to all families who qualify for diversion payments. For example, in Texas, the maximum diversion payment is $1,000, regardless of family size.

Case-by-case basis.

This method determines the maximum diversion payment on a case-by-case basis, taking into account factors such as the family’s income, expenses, and assets.