Under the Temporary Assistance for Needy Families (TANF) block grants, states have the authority to make decisions about how to allocate fed. & state funds to assist low-income families. States' increased flexibility under TANF as well as the budgetary stresses they experienced after a recession draw attention to the fiscal partnership between the fed. gov't. & states. This report examines: changes in the overall level of welfare-related spending; changes in spending priorities for welfare-related non-health services; & the contribution of TANF funds to states' spending for welfare-related serv. Reviewed spending in 9 states for FY Ô95, Ô00, & Ô04. Focused on spending for working-age adults & children, excl. the elderly, long-term & institutional care.