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Which TANF Applicants Are Diverted, and What Are Their Outcomes?

Thirty‐four states have diversion programs in place that offer lump‐sum payments or service vouchers to applicants for Temporary Assistance for Needy Families (TANF) who have short‐term needs, enabling them to avoid beginning a spell of aid. Using data from the National Survey of America’s Families, I find that diversion programs appear to target applicants at the high and low ends of the educational spectrum, as well as Hispanic and married families. Diverters are substantially less likely to be employed than TANF leavers and more likely to receive food stamps. These findings suggest that the need for short‐term assistance may recur.