The 1996 welfare reform legislation replaced the Aid to Families with Dependent Children (AFDC) program with a new Temporary Assistance for Needy Families (TANF) block grant. This new program has a fixed funding level that is not altered by inflation or economic cycles or caseload size. Individual states' shares are based on the amount they received under AFDC in the mid-1990s. States are required to spend 75 percent of the amount they spent from state funds in 1994. These six major issues will be discussed during the debate on reauthorization in 2002: (1) How much money should the federal government spend on TANF? (2) Should an inflation adjustment be built in? (3) Should the current state allocations be revised or continue to give more funds per low-income child to wealthier states? (4) Should more money be granted during economic recessions? (5) Should the "maintenance of effort" requirement that states spend at least 75 percent of what was spent in 1994 be revised? (6) Should TANF performance bonuses and bonuses for low levels of illegitimate births be revised or dropped? (Each issue is discussed in the document. There are 2 references.) (SLR)