HR 2359
Improve Transparency and Stability for Families and Children Act
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Bill overview
This bill changes how states receive and use Temporary Assistance for Needy Families (TANF) funds. It sets deadlines for states to spend these funds, requiring them to obligate and expend them within specific timeframes. States are also allowed to create ‘rainy day’ funds to save a portion of the money for future use, with limits on how much they can reserve.
Key provisions
- Establishes deadlines for states to obligate and expend TANF funds.
- Allows states to reserve up to 15% of TANF funds for future use.
- Limits the total amount a state can reserve to 50% of the funds received in the previous fiscal year.
- Requires states to notify the Secretary of intent to reserve funds.
- The bill applies to funds paid under section 403(a)(1) of the Social Security Act.
Who is affected
- States receiving TANF funds
- Families receiving TANF benefits
- State social service agencies
Notable changes
- Introduces spending deadlines for TANF funds.
- Permits states to establish reserve funds for unexpected needs.
Fiscal impact
The bill may impact state budgets by requiring more careful management of TANF funds and potentially affecting the availability of funds for assistance programs.
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119th CONGRESS — 1st Session
H. R. 2359
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend part A of title IV of the Social Security Act to establish deadlines for the obligation and expenditure of funds and allow States to establish rainy day funds under the program of block grants to States for temporary assistance for needy families.
This Act may be cited as the Improve Transparency and Stability for Families and Children Act
.
Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended to read as follows:
Except as provided in paragraph (2), a State to which funds are paid, after the effective date of this subsection, under section 403(a)(1) for a fiscal year shall obligate the funds not later than the end of the succeeding fiscal year, and shall expend the funds not later than the end of the 2nd succeeding fiscal year.
Notwithstanding paragraph (1) of this subsection, a State to which funds are paid under section 403(a)(1), after the effective date of this subsection, for a fiscal year may reserve not more than 15 percent of the funds for future use in the State program funded under this part, subject to subparagraph (B) of this paragraph.
The total amount held in reserve by a State under subparagraph (A) of this paragraph shall not exceed an amount equal to 50 percent of the total amount paid to the State under section 403(a)(1) for the then preceding fiscal year.
A State that intends to reserve funds under subparagraph (A) shall notify the Secretary of the intention not later than the end of the period in which the funds are available for obligation without regard to subparagraph (A) of this paragraph.
The amendment made by subsection (a) shall take effect on October 1, 2026.