Improve Transparency and Stability for Families

Summary#

This bill changes part A of title IV of the Social Security Act, which covers the Temporary Assistance for Needy Families (TANF) block grant program. It requires states to obligate TANF funds by the end of the fiscal year after they get the funds, and to spend those funds by the end of the second fiscal year after that. States may set aside up to 15 percent of funds from a fiscal year for future use, but total reserves cannot exceed 50 percent of the amount the state received in the previous fiscal year. A state that plans to reserve funds must notify the Secretary by the end of the period when the funds are available for obligation. The amendment takes effect on October 1, 2026.

What it means for you#

  • States must use TANF funds on a clearer schedule: obligate by the next fiscal year and spend within two fiscal years.
  • States can keep a small reserve for later use (up to 15 percent of a year’s funds), but their total reserves are capped at half of the previous year’s grant.
  • States must tell the federal Secretary if they plan to set money aside.
  • The bill changes rules for how state TANF agencies manage timing and reserves. It does not itself describe specific services or program changes.

Expenses#

No publicly available information on federal costs, budgetary effects, or required appropriations is included in the bill text or metadata provided.

Proponents' View#

No publicly available information on proponents' arguments or stated benefits is included in the bill text or metadata provided.

Opponents' View#

No publicly available information on opponents' arguments or stated concerns is included in the bill text or metadata provided.