Hundreds of thousands of Hoosiers are eligible for federal safety net programs, but many aren’t enrolling to receive benefits, according to a recent study by the Urban Institute.
The State of the Safety Net Program, released in March, provides data on seven federal programs and two tax credits for every state.
The analysis uses data from 2023 — the first year in which numbers exist across all states, programs and demographic groups, according to Linda Giannarelli, a senior fellow at the policy-research nonprofit. The analysis will be updated with 2025 data starting at the end of the year, she said.
Lagging behind on cash assistance
Providing cash aid through the Temporary Assistance for Needy Families (TANF) program is the one area in which Indiana lagged far behind the national average, according to the study.
The program is administered as a grant to each state, which can use the money for a variety of purposes that, in 2023, included work and training programs and supporting child care and pre-kindergarten.
The most direct benefit provides cash payments to families with children and low incomes.
In 2023, Indiana spent $198 million in TANF funds, of which $10.6 million was used toward cash assistance. Out of the 79,000 families eligible for direct financial aid, just 6% received it — the 13th lowest rate in the nation. The national average is 21%.
Giannerelli said Indiana’s rate could be so low due to state-level administrative requirements and a strict timeline on when, and for how long, families are eligible for the benefit.
“There are many useful ways that the (TANF) money can be spent … but for families who have very low income, only cash is cash,” she said.
Entitlement programs and WIC
The Supplemental Food Assistance Program (SNAP) was the most used federal safety net program in Indiana. Around 973,000 Hoosiers could receive money to buy food, yet less than 575,000 (59%) were enrolled.
SNAP’s WIC program for children ages 4 and under was available to 212,000 kids, but only 53% received food assistance in 2023.
Enrollment rates in Indiana for those two programs sat almost exactly at the national average.
Around 222,000 adults were eligible for Supplemental Security Income, which provides cash assistance to people with low incomes who are ages 65 and older, blind or disabled. Just 44.5% of eligible adults receive those benefits. That’s lower than the national average of 51%.
All three programs are fully funded by the federal government to allow everyone who is eligible to enroll.
“Programs that are fully funded have higher participation rates … but they’re still nowhere near 100%,” Giannerelli said. “That could be surprising to some people.”
Eligible Hoosiers might not enroll because they are unaware of the programs, feel they don’t need the benefit, don’t know how to apply or struggle with a complicated application process, Giannerelli explained.
In Illinois, state agencies have launched specific campaigns to get more people enrolled in programs like SNAP, including targeted outreach to eligible families and Black and Hispanic communities. Illinois’ SNAP enrollment increased to 73% in 2023.
“Those kinds of efforts matter,” Giannerelli said. “It didn’t happen by accident.”
In Indiana, the Family and Social Services Administration says it conducts direct outreach to SNAP applicants and current participants to inform them of program changes, how to use benefits and where to find additional resources.
Printed materials are also distributed through retailers and local offices of the Division of Family Resources to reach people where they shop and receive services, the agency said in an email.
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FPI News reporter Carson Gerber covers healthcare, manufacturing, agriculture, immigration … and just about any other topic that’s shaping how we live in Indiana today. Reach him at 765-204-4250 or carson.gerber@fpinews.org.
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