Summary

Limits use of certain federal TANF block grant funds so states may only spend those grants to provide assistance or services to families with incomes below 200% of the federal poverty level. The change amends the Social Security Act's rules for states that receive those grants and takes effect October 1, 2026. The rule applies nationwide to all states that receive the specified grants, narrowing which households can be served with those dollars and requiring states to target benefits and services to lower‑income families going forward.

• Restricts use of specified federal TANF grant funds so they can only be used for families with incomes below 200% of the federal poverty level.
• Amends 42 U.S.C. § 604 to add the new income-targeting requirement.
• Applies to all states receiving the affected grants and is effective October 1, 2026.
• Does not provide new funding or change total grant amounts; it changes how existing funds may be spent.
• States must change eligibility and administrative rules to comply, affecting programs and service providers.
• Families with incomes at or above 200% of poverty would no longer be eligible for assistance or services paid for with these specific grant dollars.
• The poverty cutoff follows the federal poverty guidelines as defined in 42 U.S.C. § 9902(2), so the dollar amount adjusts over time.
• May concentrate limited TANF grant-funded services on lower-income families while reducing access for moderate-income households that previously received support.