The issue of unspent Temporary Assistance for Needy Families (TANF) funds has become increasingly important with the progression of welfare reform. Some support reserving the funds for an eventual economic downturn, whereas others urge investing the funds in services for hard-to-serve welfare recipients and broader low-income participation. States may have unspent TANF funds for several reasons, and understanding why states have remaining unspent TANF funds is critical to determining whether those funds will be available on a one-time basis or available to fund ongoing programs. Many states are already using TANF funds to help families leaving welfare and to address the needs of working poor families. The following are among areas in which states might invest their unspent TANF funds: (1) additional services for hard-to-serve welfare recipients; (2) employment retention and career advancement; (3) earned income tax credits; (4) efforts to increase awareness of opportunities to receive food stamp assistance; (5) services for immigrants ineligible for federally funded TANF services; (6) transportation assistance; (7) child care; (8) housing; (9) postsecondary education; and (10) increased collaboration among human service agencies. Research has confirmed the importance of work supports for people moving from welfare to work. (Thirty-seven resource contacts and publications are listed.) (MN)