Reduce Bureaucracy to Uplift Families Act
The Reduce Bureaucracy to Uplift Families Act would change how TANF (Temporary Assistance for Needy Families) funds can be used for administrative purposes. It lowers the cap on administrative expenses from 15% of TANF funds to 10% and explicitly includes case management needed to help individuals develop an Individual Responsibility Plan (IRP) under section 408(b) as an allowable administrative expense (counted toward the cap). It also creates a new enforcement mechanism: if a state does not comply with the administrative cap, the Secretary would reduce that state's next-year TANF grant by up to 5% of its state family assistance grant. The measure takes effect on October 1, 2026. Sponsored by Rep. Yakym and introduced in the 119th Congress, the bill aims to streamline bureaucracy but could increase financial penalties for states that struggle to meet the new limit.
Key Points
- 1Lowers the administrative expense cap for TANF funds from 15% to 10%.
- 2Expands what counts as an administrative expense to include case management needed to help individuals develop an IRP (per 408(b)).
- 3Caps the allowable administrative expenses specifically tied to TANF for qualified state expenditures at 10% (replacing the previous 15% ceiling).
- 4Establishes a penalty: if a state fails to comply with the administrative cap, the Secretary may cut the state's next-year TANF grant by up to 5% of its State family assistance grant.
- 5Effective date: these changes take effect October 1, 2026.