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Requires states that receive federal TANF block grants to limit use of those federal funds so assistance and services paid from the grants go only to families with incomes below 200% of the federal poverty guidelines. The rule takes effect October 1, 2026 and does not change total federal TANF funding amounts, only who may be served with those federal grant dollars. Also includes a short title clause; that clause does not change program rules or funding.
The bill focuses limited TANF resources on the poorest households and standardizes eligibility for states, but risks cutting or delaying supports for families above the new cutoff and imposing programmatic and administrative burdens on states.
Low-income families with incomes under 200% of the federal poverty level will be prioritized for TANF-funded assistance, concentrating limited resources on the poorest households.
States will have clearer, standardized eligibility tied to federal poverty guidelines, simplifying administration and increasing consistency across states.
Families with incomes at or above 200% of the federal poverty level could lose access to TANF-funded services they currently receive.
States may need to cut or reconfigure programs (e.g., child care, job training, cash assistance), reducing services and causing disruptions for beneficiaries and providers; some low- and moderate-income families could face increased hardship if states do not replace lost supports.
Implementing and verifying income against updated poverty guidelines could raise administrative costs for states and delay benefit delivery during the transition.
Introduced March 27, 2025 by Adrian Smith · Last progress March 27, 2025