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Less Bureaucracy in Family Aid: Lower Administrative Costs

This new act aims to reduce administrative costs for family assistance programs, such as Temporary Assistance for Needy Families (TANF). This means more federal grant money could go directly to families instead of being spent on bureaucracy. States that fail to comply with the new limits may face funding reductions.
Key points
The administrative expense limit for family assistance programs will be reduced from 15% to 10%.
More federal grant funds are intended to go directly to supporting families, with less spent on program management costs.
States failing to meet the new limits may face a penalty of up to a 5% reduction in their grants.
These changes will take effect on October 1, 2026.
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Introduced
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Additional Information
Print number: 119_HR_2284
Sponsor: Rep. Yakym, Rudy [R-IN-2]
Process start date: 2025-03-24