Tennessee announces $175 million pilot program to help families

Tennessee Gov. Bill Lee delivers his State of the State Address in the House Chamber of the Capitol building in Nashville, Tenn., Monday, Jan. 31, 2022. (Andrew Nelles/The Tennessean via AP)
Tennessee Gov. Bill Lee delivers his State of the State Address in the House Chamber of the Capitol building in Nashville, Tenn., Monday, Jan. 31, 2022. (Andrew Nelles/The Tennessean via AP)

NASHVILLE, Tenn. (AP) - Tennessee Gov. Bill Lee on Thursday announced a $175 million pilot program intended to help needy families become self-sufficient.

The Tennessee Opportunity Pilot Initiative will provide $25 million to seven nonprofits across the state. Over the next three years, the effectiveness of each pilot program will be evaluated by a third party. The state will then help the most successful programs scale up.

The money for the pilot comes from a $775 million surplus in state funds from a federal welfare program for families with children. The large surplus came under scrutiny after it was flagged in 2019 in a report by the Beacon Center of Tennessee, a conservative think tank. The report found Tennessee received $190.9 million in 2018 through Temporary Assistance for Needy Families but spent only $71.1 million.

At a Thursday news conference, Department of Human Services Commissioner Clarence Carter praised the legislature for resisting the urge to quickly spend the surplus without a plan. He called the pilot program a "bold experiment to transform the way our safety net serves vulnerable Tennesseans."

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