Sponsor
Steve Daines
Senator · R-MT
Senator · R-MT
Official title: Reauthorize and reform the Temporary Assistance for Needy Families program under part A of title IV of the Social Security Act, and for other purposes.
Introduced May 1, 2025 by Steve Daines · Last progress May 1, 2025
The bill shifts TANF toward measurable employment outcomes, clearer definitions, and stronger federal oversight—potentially improving job supports and program transparency—while risking reduced direct cash flexibility for families, greater state administrative costs, expanded recipient data collection, and tougher sanctions for nonparticipation.
Low-income parents and families will get more job-focused services (individualized plans, training, apprenticeships, transitional earned-income disregards, and transfers to WIOA/CCDBG) to help secure and retain unsubsidized employment and increase household income.
Taxpayers, advocates, and state agencies will have stronger transparency and accountability through standardized metrics, public dashboards, improved reporting on improper payments, and clearer federal oversight of TANF performance.
Low-income families and tribal/territorial recipients will retain access to core TANF family assistance and related grants (including tribal family assistance and territorial matching grants) through FY2026–2030, preserving continuity of benefits and programs.
Low-income families face reduced cash-assistance flexibility and eligibility narrowing as funds are pushed toward employment activities, spending floors, wage subsidies, caps on direct child-care spending, and an income eligibility cap (200% of poverty), which could shrink direct aid for near‑poor and vulnerable households.
State and local agencies will incur substantial new administrative, reporting, IT, and compliance costs (revising plans, collecting/transmitting individual data, IT upgrades to new standards, faster obligation windows, improper-payment reporting) that may divert funds from direct services or strain budgets.
Expanded individual-level data collection (monthly hours incl. zeros, eligibility status, reasons for nonparticipation) and standardized data exchange increase privacy and security risks for recipients if safeguards and enforcement are inadequate.
Based on analysis of 35 sections of legislative text.
Restructures TANF toward employment outcomes: new individual plans, 25% spending floors for core activities, new performance metrics and penalties, tightened eligibility and reporting, effective Oct 1, 2026.
Rewrites large parts of the Temporary Assistance for Needy Families (TANF) law to push states toward job entry, retention, and earnings growth for needy parents. It requires individualized opportunity plans, new data and reporting standards, spending floors for core activities (work supports, training, apprenticeships, case management), a new performance‑based accountability system with penalties for failing targets, tighter limits on allowable uses of TANF (including a monthly income cap for recipients and a prohibition on funding establishments that sell marijuana), and stronger improper‑payment rules. Most changes take effect October 1, 2026.