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HR 2359119th CongressIn Committee
Improve Transparency and Stability for Families and Children Act
Introduced: Mar 26, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Improve Transparency and Stability for Families and Children Act would change how states handle Temporary Assistance for Needy Families (TANF) funds. Starting after October 1, 2026, it would require states to obligate TANF funds by the end of the next fiscal year and to expend them by the end of the following two fiscal years. Additionally, it would allow states to set aside up to 15% of the funds for future use (a “rainy day” reserve), but the total reserve could not exceed 50% of the prior year’s TANF funds paid to the state. States must notify the Secretary of their intent to reserve funds. The bill is aimed at increasing transparency and financial stability for families and children who rely on TANF.
Key Points
- 1Deadlines for obligation and expenditure: States must obligate TANF funds by the end of the next fiscal year and expend them by the end of the second following fiscal year (with limited exceptions).
- 2Rainy day reserve: States may reserve up to 15% of TANF funds for future use, subject to a cap.
- 3Cap on reserves: The total amount held in reserve cannot exceed 50% of the total TANF funds paid to the state under section 403(a)(1) for the previous fiscal year.
- 4Notice requirement: A state intending to reserve funds must notify the Secretary of that intention within a defined timeframe.
- 5Effective date: The amendments take effect on October 1, 2026.
Impact Areas
Primary group/area affected: States receiving TANF block grant funds and the administrators who manage TANF programs; ultimately, families and children who depend on TANF for assistance.Secondary group/area affected: State budgetary processes and planning, since tighter deadlines and reserve options could alter spending and carryover practices.Additional impacts: Potential changes in program stability and predictability for families; administrative and reporting requirements to document obligations, expenditures, and reserves.
Generated by gpt-5-nano on Nov 1, 2025