This bill amends the Temporary Assistance for Needy Families (TANF) program, which provides federal funding to states to help low-income families. The legislation establishes new timelines requiring states to use their TANF funds more quickly, obligating funds by the end of the following fiscal year and spending them by the end of the second fiscal year after receipt. States would be allowed to set aside up to 15 percent of their annual TANF funds as a "rainy day" reserve for future use, with a cap limiting total reserves to 50 percent of the prior year's funding. States that choose to reserve funds must notify the federal government of their intention to do so. The bill also extends the TANF program's authorization through September 30, 2026, with the changes to fund obligation and expenditure deadlines taking effect on October 1, 2025.
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