H.R. 2354 requires states to spend at least 25 percent of their federal Temporary Assistance for Needy Families (TANF) block grant funds on core work-related activities, effective October 1, 2026. These qualifying activities include job training, education, apprenticeships, work-related case management, and short-term emergency assistance designed to help recipients develop employment plans. The bill essentially redirects a minimum portion of TANF funding away from other uses and toward direct workforce development and employment support services. This affects all states receiving TANF grants and the low-income families who rely on this assistance program. The legislation takes effect in fiscal year 2027, giving states time to adjust their program spending allocations.
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