Established by the Social Security Act of 1965 and formerly known as Aid to Families with Dependent Children (AFDC) , this is a Medicaid category of certain needy and low-income people with dependent children who are deprived of the support of at least one parent and are financially eligible on the basis of income and resources. TANF provides financial assistance to children and families and to pregnant women who meet specific income and resource requirements specified by the state.