Targeting TANF to Families in Need Act

Key Points

• This bill would change the rules for Temporary Assistance for Needy Families (TANF), a major federal welfare program. It would require every state to limit TANF spending to families earning below a specific income threshold, reducing the flexibility states currently have in deciding who qualifies.
• The new income cap would be set at twice the federal poverty level. For a family of four in 2025, that works out to roughly $62,400 a year. Families earning above that threshold would no longer be eligible for any TANF-funded assistance or services.
• Currently, states have wide discretion over how they spend their TANF block grants, including on programs that may serve families well above the poverty line. This bill aims to refocus that spending on families who are struggling the most financially.
• If passed, the new income limits would take effect on October 1, 2026, giving states more than a year to adjust their programs, update eligibility systems, and notify affected families.