This bill would reduce the administrative expenses that states can claim under the Temporary Assistance for Needy Families (TANF) program, which provides cash assistance to low-income families. Currently, states can use up to 15 percent of their TANF block grant funds for administrative costs, but the legislation would lower this cap to 10 percent, forcing states to spend a larger share of their federal funding directly on benefits and services. The bill includes an exception allowing states to still count case management expenses related to developing individual responsibility plans toward meeting work requirements. The changes would take effect on October 1, 2025, and the bill also extends the TANF program through September 30, 2026, appropriating whatever funds are necessary to keep the program running at 2023 funding levels.
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