This bill amends the Temporary Assistance for Needy Families (TANF) program to establish strict timelines for how states must use federal funds and creates a "rainy day fund" option for states. Specifically, states would be required to obligate TANF funds within one year of receiving them and spend them within two years, with exceptions allowing states to set aside up to 15 percent of annual funding for future use—though total reserves cannot exceed 50 percent of the previous year's funding. States that want to reserve funds would need to notify the federal government of their intention to do so. The bill aims to increase transparency and ensure funds reach families more quickly while giving states some flexibility to build savings for economic downturns. The new requirements would take effect on October 1, 2026, affecting all state TANF programs nationwide.
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