Limits how states can spend certain federal welfare funds. Starting October 1, 2026, states may use their basic TANF block grant dollars only to help families with incomes below 200% of the federal poverty guidelines.

This targets assistance to lower‑income families and may require states to change or narrow some programs, verify family income, and shift funding away from services that currently reach households above the 200% threshold. It does not change total funding levels or create new taxes.