I 

118TH CONGRESS 

2D SESSION H. R. 7410 

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. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 20, 2024 

Mr. CAREY 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Improve Transparency 

5 and Stability for Families and Children Act’’. 


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1 SEC. 2. DEADLINES FOR THE OBLIGATION AND EXPENDI2 TURE OF FUNDS. 

3 (a) IN GENERAL.—Section 404(e) of the Social Secu4 rity Act (42 U.S.C. 604(e)) is amended to read as follows: 

5 ‘‘(e) DEADLINES FOR OBLIGATION AND EXPENDI6 TURE OF FUNDS BY STATES.— 

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graph (2), a State to which funds are paid, after the 

9 effective date of this subsection, under section 

10 403(a)(1) for a fiscal year shall obligate the funds 

11 not later than the end of the succeeding fiscal year, 

12 and shall expend the funds not later than the end 

13 of the 2nd succeeding fiscal year. 

14 ‘‘(2) EXCEPTION FOR LIMITED AMOUNT OF

15 FUNDS SET ASIDE FOR FUTURE USE.— 

16 ‘‘(A) IN GENERAL.—Notwithstanding para17 graph (1) of this subsection, a State to which 

18 funds are paid under section 403(a)(1), after 

19 the effective date of this subsection, for a fiscal 

20 year may reserve not more than 15 percent of 

21 the funds for future use in the State program 

22 funded under this part, subject to subparagraph 

23 (B) of this paragraph. 

24 ‘‘(B) LIMITATION.—The total amount held 

25 in reserve by a State under subparagraph (A) 

26 of this paragraph shall not exceed an amount 


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1 equal to 50 percent of the total amount paid to 

2 the State under section 403(a)(1) for the then 

3 preceding fiscal year. 

4 ‘‘(C) NOTICE OF INTENT TO RESERVE

5 FUNDS.—A State that intends to reserve funds 

6 under subparagraph (A) shall notify the Sec7 retary of the intention not later than the end of 

8 the period in which the funds are available for 

9 obligation without regard to subparagraph (A) 

10 of this paragraph.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall take effect on October 1, 2025. 

13 SEC. 3. TWO-YEAR REAUTHORIZATION OF THE TEMPORARY 

14 ASSISTANCE FOR NEEDY FAMILIES PRO15 GRAM. 

16 Activities authorized by part A of title IV (other than 

17 under section 403(c) or 418) and section 1108(b) of the 

18 Social Security Act shall continue through September 30, 

19 2026, in the manner authorized for fiscal year 2023, and 

20 out of any money in the Treasury of the United States 

21 not otherwise appropriated, there are hereby appropriated 

22 such sums as may be necessary for such purpose. 

Æ 


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