This article estimates the effects of being sanctioned, that is, of being subject to a governmental decision to reduce or eliminate welfare benefits, on material hardships and health among mothers on Temporary Assistance for Needy Families (TANF) and their children. Compared to nonsanctioned mothers, those who are sanctioned are at high risk for hunger, homelessness or eviction, utility shutoffs, inadequate medical care, any material hardship, poor health, and relying on family or friends for housing. Results suggest a causal connection to hunger, utility shutoffs, any material hardship, poor maternal physical health, and relying on others for housing.