A rose by any other name?lump-sum diversion or traditional welfare grant?

Critics of diversion grants, lump-sum payments designed to alleviate short-term emergencies and prevent the need for ongoing Temporary Assistance to Needy Families (TANF) receipt, claim that recipients use monetary amounts similar to traditional welfare recipients. This paper examines the total cash grants for two cohorts of TANF applicants: Those whose applications resulted in a TANF grant and those who received a diversion grant. Multivariate regression models show that diversion leads to a reduction of $1,841.44 in cash benefit receipt duringthe three-year tracking period (p <0.001). Findings suggest that diversion payments are not TANF under another name.