Washington TANF (simple implement) #6819
Description
Implement Washington State TANF
Overview
Implementation of Washington State Temporary Assistance for Needy Families (TANF), also known as WorkFirst, providing time-limited cash assistance to families with children.
Status Checklist
- Documentation collected
- Parameters created (7 files)
- Variables implemented (8 files)
- Tests written (59 test cases across 7 files)
- All tests passing
- Formulas verified against Washington Administrative Code
- Code refactored to match PA/OH quality standards
- All references verified
- PR ready for review
Implementation Summary
Washington TANF (Branch: wa-tanf-simple)
Current Status: All formulas verified against Washington Administrative Code. All 59 tests passing. Refactored to match PA TANF and OH OWF patterns.
Key Features Implemented:
- ✅ Payment standards by family size (1-10 people)
- ✅ Maximum grant cap ($1,338) - Unique to Washington
- ✅ Earned income disregard ($500 + 50% of remainder)
- ✅ Income limits (mathematically derived as break-even points)
- ✅ Resource limits ($6,000 → $12,000 via HB 1447)
- ✅ Demographic and citizenship eligibility
- ✅ Uses federal TANF variables directly (OH pattern)
Formula (Per WAC 388-450-0170 and WAC 388-450-0162):
Earned Income Disregard: $500 + 50% of remainder
- remainder = max(gross_earned - $500, 0)
- amount_disregarded = remainder × 50%
- countable = remainder - amount_disregarded
Countable Income = countable_earned + gross_unearned
Monthly Benefit = MIN(
MAX(Payment Standard - Countable Income, 0),
$1,338 # maximum grant cap
)
Verification: Formulas match WAC 388-450-0170 and WAC 388-450-0162 exactly.
Folder Structure
Parameters (7 files)
policyengine_us/parameters/gov/states/wa/dshs/tanf/
├── income/
│ ├── deductions/
│ │ └── earned_income_disregard/
│ │ ├── amount.yaml # $500
│ │ └── percentage_disregarded.yaml # 50%
│ └── limit.yaml # Income limits by size
├── payment_standard/
│ ├── amount.yaml # Sizes 1-10
│ └── maximum_amount.yaml # $1,338 cap
├── resource_limit.yaml # $6K → $12K
└── maximum_family_size.yaml # 10
Variables (8 files)
policyengine_us/variables/gov/states/wa/dshs/tanf/
├── benefit/
│ └── wa_tanf_payment_standard.py
├── eligibility/
│ ├── wa_tanf_eligible.py
│ └── wa_tanf_income_eligible.py
├── income/
│ ├── wa_tanf_countable_earned_income.py
│ └── wa_tanf_countable_income.py
├── wa_tanf_countable_resources.py
├── wa_tanf_resources_eligible.py
└── wa_tanf.py
Tests (7 files, 59 test cases)
policyengine_us/tests/policy/baseline/gov/states/wa/dshs/tanf/
├── benefit/wa_tanf_payment_standard.yaml # 6 tests
├── eligibility/wa_tanf_eligible.yaml # 6 tests
├── eligibility/wa_tanf_income_eligible.yaml # 9 tests
├── income/wa_tanf_countable_earned_income.yaml # 8 tests
├── integration.yaml # 19 tests
├── wa_tanf.yaml # 9 tests
└── wa_tanf_resources_eligible.yaml # 2 tests
Program Documentation
Program Overview
Washington State's TANF program (WorkFirst) provides temporary cash assistance to families with children who have low or no income. The program emphasizes work participation and self-sufficiency.
Key Facts:
- Federal Lifetime Limit: 60 months (5 years)
- Work Requirements: Required participation in WorkFirst activities
- Resource Limits: $12,000 (increased from $6,000 via HB 1447, effective Feb 1, 2024)
- Payment Standards: Approximately 33-34% of Federal Poverty Level
Payment Standards (Effective January 1, 2024)
Washington uses a two-standard system:
Need Standards (Eligibility Determination)
| Family Size | Need Standard | Payment Standard | Ratio |
|---|---|---|---|
| 1 | $3,816 | $450 | 11.8% |
| 2 | $6,044 | $570 | 9.4% |
| 3 | $7,433 | $706 | 9.5% |
| 4 | $9,579 | $833 | 8.7% |
| 5 | $11,481 | $959 | 8.4% |
| 6 | $13,399 | $1,090 | 8.1% |
| 7 | $15,335 | $1,258 | 8.2% |
| 8 | $17,220 | $1,392 | 8.1% |
| 9 | $19,314 | $1,529 | 7.9% |
| 10+ | $22,379 | $1,662 | 7.4% |
Ratable Reduction: Payment standards are only ~9% of need standards
Sources:
- Need Standards: WAC 388-478-0015 (effective July 1, 2025)
- Payment Standards: WAC 388-478-0020 (effective January 1, 2024)
Income Limits (Effective August 1, 2024)
Maximum Gross Earned Income by Family Size:
| Family Size | Income Limit | Formula Check |
|---|---|---|
| 1 | $1,400 | ($450×2)+$500 ✓ |
| 2 | $1,640 | ($570×2)+$500 ✓ |
| 3 | $1,912 | ($706×2)+$500 ✓ |
| 4 | $2,166 | ($833×2)+$500 ✓ |
| 5 | $2,418 | ($959×2)+$500 ✓ |
| 6 | $2,680 | ($1,090×2)+$500 ✓ |
| 7 | $3,016 | ($1,258×2)+$500 ✓ |
| 8 | $3,284 | ($1,392×2)+$500 ✓ |
| 9 | $3,558 | ($1,529×2)+$500 ✓ |
| 10+ | $3,824 | ($1,662×2)+$500 ✓ |
Mathematical Relationship: Income limits represent the break-even point where countable income equals payment standard, resulting in $0 benefit.
Source: WAC 388-478-0035 (filed 5/7/24, effective 8/1/24)
Resource Limits
Historical Changes:
- Through March 2022: $6,000 (2022 State Plan, page 13)
- February 1, 2024 onward: $12,000 (HB 1447, Chapter 418 Laws of 2023)
Countable Resources Include:
- Cash on hand
- Checking and savings accounts
- Other liquid assets
Excluded Resources:
- One vehicle (up to $10,000 equity)
- Home and property
- Household furnishings
- Burial insurance (up to $1,500)
Source: WAC 388-470-0005 and 2022 TANF State Plan
Benefit Calculation
Formula:
Monthly Benefit = MIN(Payment Standard - Countable Income, $1,338)
Earned Income Disregard (WAC 388-450-0170):
- Deduct first $500 from household's total gross earned income
- Disregard 50% of remaining earned income
- Result = countable earned income
Unearned Income: No disregards (full amount countable)
Maximum Grant Cap: $1,338/month regardless of family size (affects families of 8+)
Eligibility Rules
Requirements:
- Minor child under 18 (or 18-19 if full-time student), OR pregnant woman
- U.S. citizen or qualified immigrant (at least one in household)
- Pass gross earned income test (income < limit by family size)
- Pass resource test (countable resources ≤ $12,000)
- Meet work participation requirements (WorkFirst activities)
No Distinction: Same income eligibility rules apply to both new applicants and continuing recipients (simpler than PA/OH)
Special Features
Maximum Grant Cap ($1,338): Unique to Washington
- Payment standards for families of 8+ exceed this cap
- Example: Family of 10 has $1,662 payment standard but max grant is $1,338
- No other state TANF program observed has this feature
Universal Disregard: All recipients get same $500 + 50% disregard
- No conditional eligibility for disregard (unlike PA)
- No two-tier initial vs ongoing tests (unlike OH)
- Simplest among PA/OH/WA implementations
Example Calculations
Example 1: Basic Earned Income
Household: Family of 3 (1 parent, 2 children)
Income: $1,000/month earned income
Step 1: Payment standard for family of 3 = $706/month
Step 2: Calculate countable income
Gross earned: $1,000/month
After $500: $1,000 - $500 = $500
50% disregarded: $500 × 50% = $250
Countable: $500 - $250 = $250/month
Step 3: Calculate benefit
$706 - $250 = $456/month
Total household income: $1,000 + $456 = $1,456/month
Example 2: Income Under $500 Threshold
Household: Family of 2
Income: $400/month earned
Payment standard for family of 2 = $570/month
Countable income:
$400 - $500 = -$100 (clipped to $0)
All income is disregarded!
Countable: $0/month
Benefit: $570 - $0 = $570/month (maximum benefit)
Total household income: $400 + $570 = $970/month
Key Insight: All earned income under $500/month is fully disregarded!
Example 3: At Income Limit (Break-Even Point)
Household: Family of 3
Income: $1,912/month earned (exactly at limit)
Income limit for family of 3: $1,912 (from WAC 388-478-0035)
Countable income:
$1,912 - $500 = $1,412
$1,412 × 50% = $706 disregarded
Countable: $706/month
Benefit: $706 - $706 = $0 (break-even - eligible but no payment)
This demonstrates why: Income Limit = (Payment Standard × 2) + $500
Example 4: Maximum Grant Cap
Household: Family of 10
Income: $800/month earned
Payment standard for family of 10: $1,662/month
Maximum grant cap: $1,338/month
Countable income:
$800 - $500 = $300
$300 × 50% = $150 disregarded
Countable: $150/month
Benefit before cap: $1,662 - $150 = $1,512
Benefit after cap: MIN($1,512, $1,338) = $1,338/month
Total household income: $800 + $1,338 = $2,138/month
Testing & Verification
Test Coverage (59 test cases)
| Test File | Count | Purpose |
|---|---|---|
| integration.yaml | 19 | End-to-end scenarios |
| wa_tanf.yaml | 9 | Main benefit formula |
| wa_tanf_income_eligible.yaml | 9 | Income eligibility |
| wa_tanf_countable_earned_income.yaml | 8 | Earned income disregard |
| wa_tanf_payment_standard.yaml | 6 | Payment standards |
| wa_tanf_eligible.yaml | 6 | Overall eligibility |
| wa_tanf_resources_eligible.yaml | 2 | Resource limits |
| Total | 59 |
Test Results
✅ All 59 tests passing
- 19 integration tests
- 40 unit tests
- 0 failures
How to Run Tests
# All WA TANF tests
policyengine-core test policyengine_us/tests/policy/baseline/gov/states/wa/dshs/tanf/ -c policyengine_us
# Integration tests only
policyengine-core test policyengine_us/tests/policy/baseline/gov/states/wa/dshs/tanf/integration.yaml -c policyengine_usKnown Limitations & Future Enhancements
Not Yet Implemented
-
Dependent Care Deductions (WAC 388-450-0170(4))
- Variable amounts by hours worked ($50-$200 per child)
- Can be added as enhancement
-
Child Support Pass-Through
- Current: $50 (1 child), $100 (2+ children)
- Starting 1/1/2026: 100% pass-through (HB 1652)
- Can be added with temporal logic
-
60-Month Lifetime Limit
- Requires time-series tracking
- Extensions for hardship cases
- Out of scope for current implementation
-
Work Requirements
- WorkFirst participation tracking
- Sanction system
- Not modeled in benefit calculation
-
Special TANF Programs
- Kinship Care TANF
- In-Loco Parentis TANF
- Different eligibility rules
Simplified Assumptions
- Enrollment Status: No historical tracking
- Federal Eligibility: Reuses federal
is_demographic_tanf_eligible - Resources: Calculation variable exists but not fully implemented
- Monthly Calculations: No weekly or annual variations
References
Official Government Sources
Washington Administrative Code:
- WAC 388-450-0170 - Earned income deductions and work incentives
- WAC 388-478-0020 - Payment standards for TANF, SFA, and RCA
- WAC 388-478-0015 - Need standards
- WAC 388-478-0035 - Maximum earned income limits
- WAC 388-470-0005 - Resource limits
- WAC 388-450-0162 - Income counting and benefit calculation
- WAC 388-400-0005 - TANF eligibility requirements
Washington Legislation:
- HB 1447 (2023 c 418) - Increased resource limit to $12,000 (effective Feb 1, 2024)
DSHS Policy Manuals:
State Plans:
- Washington TANF State Plan 2022 - Historical $6,000 resource limit
Research Sources
- NCCP Washington TANF Profile 2024 - 33% of FPL analysis
- Washington Law Help - TANF Guide
Branches & PRs
Implementation Branch: wa-tanf-simple
Remote Tracking: origin/integration/wa-tanf-2025-11-11
Base: master
Related PRs:
- PR Implement Washington State TANF #6818 - Implement Washington State TANF
Status: ✅ All formulas verified, 59 tests passing, ready for review
Key Implementation Notes
Formula Verification
All formulas verified against Washington Administrative Code:
- ✅ Benefit Formula:
MIN(MAX(payment_standard - countable_income, 0), $1,338)(WAC 388-450-0165 + DSHS manual) - ✅ Earned Income Disregard: "$500 + 50% of remainder" (WAC 388-450-0170(2)(3))
- ✅ Unearned Income: No disregards (WAC 388-450-0162)
- ✅ Income Limits: Break-even points (WAC 388-478-0035)
- ✅ Resource Limit: $12,000 (HB 1447, effective 2/1/2024)
Critical Design Decisions
-
Simpler Than PA/OH: Washington has the simplest TANF structure
- No conditional disregard eligibility (unlike PA)
- No two-tier income tests (unlike OH)
- Everyone gets same $500 + 50% disregard
-
Unique Maximum Cap: $1,338 limit not seen in PA or OH
- Affects only large families (8+) with low income
- Caps benefit even when payment standard is higher
-
Income Limits Are Formula-Derived: Mathematical break-even points
- Formula: (Payment Standard × 2) + $500
- Represents where countable income = payment standard → $0 benefit
- WAC publishes as table, not formula (we preserve table structure)
-
Resource Limit History: Tracked with proper legislation
- 2022: $6,000 (verified in State Plan)
- 2024: $12,000 (HB 1447, effective Feb 1)
- Doubled to reduce barriers to eligibility
-
Parameter Quality: Follows Parameter Architect agent rules
- All descriptions spell out "Temporary Assistance for Needy Families program"
- All references verified to show actual values
- Dual references where available (legal code + policy manual)
- Clean PA/OH-style folder structure
Contact & Coordination
Implementation Lead: @hua7450
Branch: wa-tanf-simple
PR: #6818
Status: ✅ All formulas verified, 59 tests passing, ready for review
Last Updated: 2025-11-12
This issue serves as the central coordination point for Washington State TANF implementation.