HR 2397119th CongressIn Committee

Targeting TANF to Families in Need Act

Introduced: Mar 27, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Targeting TANF to Families in Need Act would tighten who can receive TANF funds by requiring states to use their TANF grants only for families with income below 2 times the federal poverty guidelines. The change would be added to Section 404 of the Social Security Act, with the thresholdbased rule tying eligibility to the poverty guidelines updated annually in the Federal Register under OBRA 1981. The provision would apply to grants states receive under Section 403(a)(1) and would take effect on October 1, 2026. In short, the bill narrows the pool of families eligible for TANF-funded assistance to those at or below 200% of the poverty line, aiming to target funds more narrowly to those in greater need.

Key Points

1Adds a new subsection (l) to Section 404 of the Social Security Act to establish a “threshold for families in need.”
2States receiving TANF block grants under Section 403(a)(1) must use the grant only to assist families whose income is less than 2x the federal poverty guidelines.
3The poverty guideline threshold is based on the guidelines updated periodically in the Federal Register under OBRA 1981 (42 U.S.C. 9902(2)).
4Effective date of the new requirement is October 1, 2026.
5The text does not specify enforcement mechanisms or penalties beyond the requirement itself; compliance procedures would be determined by federal and state TANF program administration.

Impact Areas

Primary group/area affected: Families with household income below 2x the federal poverty guidelines (i.e., those considered below the 200% of poverty threshold) who would be eligible for TANF assistance under the new rule.Secondary group/area affected: States administering TANF programs and the federal-state grant relationship (Section 403(a)(1)); federal funding allocations tied to compliance with the new threshold.Additional impacts: Potential reduction in TANF eligibility for families with income between 2x and current TANF limits, possible administrative complexity for verifying income thresholds, and broader implications for program design and other social supports if affected families seek aid elsewhere. The change could influence overall TANF caseloads and state budgeting for welfare programs.

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