Financial Disincentives/Sanctions: Clients who fail to sign or follow through with the provisions of a Family Investment Agreement (FIA) are assigned to the Limited Benefit Plan (LBP), which provides a reduced level of cash assistance for three months followed by no cash assistance for the entire family for six months.

Financial Incentives: Work expense disregards and earned income disregards are increased. Asset limit increased to $2,000 for applicants and $5,000 for recipients. Vehicle asset limit increased to $3,000 in 1994 (with annual increases based on the Consumer Price Index) for every adult and working teenage household member. Income, interest, and dividends deposited in an Individual Development Account (IDA) are disregarded when income and asset eligibility are determined.

Program operations/implementation: Study examines developing Iowa’s TANF program; policy changes; and changes in administrative procedures and services.

Program Requirements: Able-bodied FIP recipients are required to sign a Family Investment Agreement (FIA) which is a contract outlining the recipient’s plans to participate in education, job search, and employment activities and the state’s plans to provide support services and a date by which the family intends to leave FIP.

Social/Support Services: Transitional Child Care is extended from 12 to 24 months and to FIP participants with earnings who either leave FIP voluntarily or are terminated because of child support receipt.

Time Limits: FIP participants are eligible for five years total benefit receipt.