Participation in Tier 2 was mandatory and could be enforced by sanctioning TANF benefits. Participants worked with Tier 2 case managers from local service providers, who had caseloads of 25 to 30 cases rather than the 75 to 100 cases of a typical Tier 1 case manager. Case managers performed detailed assessments of clients to identify the underlying challenges affecting them and their families and then referred clients to services that addressed those challenges. They also monitored participation, including through home visits.

New Hope participants who worked at least 30 hours per week could receive low-cost health insurance (if not provided through their employer) and child care subsidies (if they had a child younger than 13).