MR #25.08 2025 Increase to TANF Initial Employment Deduction

 Illinois Department of Human Services Logo

02/19/2025

Summary:

  • The TANF Initial Employment Deduction (IED) will increase effective 03/01/2025 due to the annual update to the Federal Poverty Level (FPL).
  • Examples of calculating the IED are updated.

Initial Employment Deduction

Beginning 03/01/2025, IES will use the new IED amounts to determine initial financial eligibility for TANF at intake or Program Add for cash requests. The IED is increased due to the revised 2025 FPL. The IED is equal to the difference between 50% of the monthly FPL for the applicant's family size and the TANF payment level. Current IED amounts can be found in WAG 25-03-02(3). Historical IED amounts can be found in WAG 25-06-18.

Special Budgeting Situations

When TANF is determined using Parent Liability, Ineligible Parent or Excluded Spouse, the IED amount that corresponds to the family unit size of the employed person is used. See examples in WAG 08-01-02-b.

Manual Revisions

WAG 08-01-02-b

WAG 10-02-02-a

WAG 10-02-02-c

WAG 10-04-04

WAG 25-03-02(3)

WAG 25-06-18

[signed copy on file]

Dulce M. Quintero

Secretary-Designate, Illinois Department of Human Services