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.

Clients were assigned case managers who helped identify education and job development opportunities that were appropriate for them. Education opportunities included life-skills workshops, adult basic education, GED courses, or English-as-a-second-language courses. Job development opportunities included vocational skills training, work experience (including internships), on-the-job training, or unpaid work. The program also offered reimbursements for child care and transportation expenses.