Improve Transparency and Stability for Families and Children Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2359 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 2359

  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.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2025

Mr. Carey (for himself and Mr. Miller of Ohio) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Improve Transparency and Stability 
for Families and Children Act''.

SEC. 2. DEADLINES FOR THE OBLIGATION AND EXPENDITURE OF FUNDS.

    (a) In General.--Section 404(e) of the Social Security Act (42 
U.S.C. 604(e)) is amended to read as follows:
    ``(e) Deadlines for Obligation and Expenditure of Funds by 
States.--
            ``(1) In general.--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.
            ``(2) Exception for limited amount of funds set aside for 
        future use.--
                    ``(A) In general.--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.
                    ``(B) Limitation.--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.
                    ``(C) Notice of intent to reserve funds.--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.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2026.
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