Implement Arizona TANF (cash assistance) program

[hua7450]

Summary

Implements Arizona Cash Assistance (TANF) program.

Closes #7149

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Regulatory Authority

• A.R.S. § 46-207 - Grant plus income; uniform assistance plan; amount of assistance
• A.R.S. § 46-207.01 - Temporary assistance for needy families; amount of cash assistance
• A.R.S. § 46-292 - Eligibility for assistance
• 2023 Arizona TANF State Plan

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1. Income Eligibility Tests

Needy Family Test

Household Type	Income Limit
Standard households	≤ 100% FPG
Non-parent caretaker relatives	≤ 130% FPG

Source: 2023 Arizona TANF State Plan, Page 18

Payment Standard Test

After passing the Needy Family test, countable income must also be at or below the applicable Payment Standard (A1 or A2).

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2. Income Deductions & Exemptions

Earned Income Disregards

Deduction	Amount
Flat deduction	$90/month
Percentage disregard	30% of remainder

Source: 2023 Arizona TANF State Plan, Page 18

Dependent Care Expense Deduction

Dependent Type	Maximum Deduction
Child under age 2	$200/month
Child age 2+	$175/month

Source: A.R.S. § 46-292

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3. Payment Standards

Arizona payment standards are calculated as a percentage of the 1992 Federal Poverty Guidelines:

Standard	Rate	Applies When
A1	36% of 1992 FPG	Recipient has shelter costs
A2	36% × (1 - 37%) = ~23% of 1992 FPG	Recipient has no shelter costs

Per A.R.S. § 46-207: "the department shall reduce the federal poverty level used in its calculation of payments by thirty-seven per cent if the person is not paying, or is not obligated to pay, shelter costs"

Payment Standard by Family Size (Current - Post Dec 2023)

Family Size	1992 FPG	A1 (36%)	A2 (~23%)
1	$6,810	$204	$129
2	$9,190	$276	$174
3	$11,570	$347	$219
4	$13,950	$419	$264
5	$16,330	$490	$309
6	$18,710	$561	$354
7	$21,090	$633	$399
8	$23,470	$704	$444

Historical Benefit Reduction (2009-2023)

Arizona implemented a 20% benefit cut during the Great Recession (July 2009 - November 2023), reducing the payment standard rate from 36% to 28.8%.

Sources:

• Arizona CNAP Manual - What's Changed 11/27/2023
• 2023 Arizona TANF State Plan, Page 21

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4. Resource Limit

• $2,000 countable assets

Source: 2023 Arizona TANF State Plan, Page 20

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5. Benefit Calculation

Formula

Benefit = Payment Standard − Countable Income

Countable Income Calculation

Countable Income = max(0, Gross Earned − $90 − 30% of Remainder − Care Expenses) + Unearned Income

Example (Family of 3, with shelter, $400 earned income)

1. $400 − $90 = $310
2. $310 × 0.70 = $217 (after 30% disregard)
3. $217 − $0 (no care expenses) = $217 countable income
4. $347 (A1 standard) − $217 = $130 benefit

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6. Not Implemented

The following program rules are documented but not implemented in this PR:

40% Self-Employment Income Standard Deduction

Per 2023 Arizona TANF State Plan, Page 18-19:

"Self-employed family members may be eligible to receive a standard deduction for allowable business expenses equivalent to 40 percent of the countable gross self-employment income. The self-employment standard deduction is applied prior to calculating the earned income disregards."

This deduction applies before the $90 flat and 30% percentage disregards. Without this, benefits for self-employed recipients may be underestimated.

Disabled Adult Dependent Care Deduction

The State Plan mentions care expenses for disabled adults at $175/month, but only child care deductions are implemented.

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Files Changed

Parameters (7 files)

gov/states/az/hhs/tanf/
├── income/
│   ├── fpg_limit/
│   │   ├── base.yaml          # 100% FPG limit
│   │   └── non_parent.yaml    # 130% FPG for non-parent relatives
│   └── deductions/
│       ├── flat.yaml          # $90 flat disregard
│       ├── percentage.yaml    # 30% percentage disregard
│       └── care_expenses/
│           └── amounts.yaml   # Child care deduction amounts
├── payment_standard/
│   ├── rate.yaml              # 36% base rate (with historical 20% cut)
│   └── reduction.yaml         # 37% reduction for no shelter
└── resources/
    └── limit.yaml             # $2,000 resource limit

Variables (11 files)

• az_tanf.py - Main benefit calculation
• az_tanf_eligible.py - Overall eligibility
• az_tanf_eligible_child.py - Child eligibility
• az_tanf_income_eligible.py - Income eligibility
• az_tanf_resources_eligible.py - Resource eligibility
• az_tanf_fpg_rate.py - FPG rate selector (100%/130%)
• az_tanf_fpg_baseline.py - 1992 FPG baseline calculator
• az_tanf_payment_standard.py - Payment standard (A1/A2)
• az_tanf_countable_income.py - Total countable income
• az_tanf_countable_earned_income.py - Countable earned income
• az_tanf_earned_income_after_disregard_person.py - Per-person earned income after disregards
• az_tanf_dependent_care_deduction.py - Dependent care deduction

Tests (12 files)

• Unit tests for each variable
• Integration test with 9 comprehensive scenarios

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🤖 Generated with Claude Code

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Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (1ceb893) to head (401a867).
⚠️ Report is 10 commits behind head on main.

Additional details and impacted files

@@             Coverage Diff             @@
##              main     #7150     +/-   ##
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  Coverage   100.00%   100.00%             
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  Files            1        11     +10     
  Lines         3175       163   -3012     
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- Hits          3175       163   -3012     

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