This bill allows states to redirect a portion of their federal Temporary Assistance for Needy Families (TANF) block grant funding toward workforce development programs under the Workforce Innovation and Opportunity Act. Specifically, states gain the flexibility to transfer these welfare funds to support job training and employment services without needing separate federal approval for each transfer. The legislation caps workforce activity reservations at 15 percent of transferred funds and requires states that use this option to submit a combined state plan to both the federal Department of Health and Human Services and the Department of Labor. The changes take effect on October 1, 2026, giving states time to plan their program transitions. The bill aims to reduce administrative overlap between welfare and job training systems while expanding access to workforce development services for low-income individuals.
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