HB 2358

Present law requires the department of human services ("department"") to maintain a temporary assistance for needy families (TANF) rainy-day fund, and that the funds in the TANF rainy-day fund remain unobligated in order to address unforeseen future econo mic needs. This bill adds requirements for how certain funds in the TANF rainy-day fund must be distributed. This bill requires the department to annually transfer a portion of the TANF rainy-day fund to the child care and development fund in an amount sufficient to fund participation in the smart steps program by a family who (i ) m eets the eligibility requirements of the smart steps program, (ii) e lects to participate in the program, and ( iii ) i s unable to be served due to insufficient c hild care and development fund ( CCDF ) funds . However, these transferred funds must not replace any current use of the child ca re and development fund and must not exceed 30% of the TANF rainy-day fund, as required by federal law, or any other amount permitted by the federal government . This bill also requires the eligible limit, sliding scale fee schedule, and co-pay policies for the smart steps program that were in effect on September 30, 2025, to be utilized as a minimum standard. ANNUAL REPORT This bill requires the department to publish an annual report on its website detailing the TANF program's and the child care and development fund's balances and expenditures. The report must include (i) e xpenditures in the prior fiscal year by expense category, (ii) obligated balances by expense category, (iii) any unobligated balance. RULEMAKING This bill authorizes t he department to promulgate rules to effectuate this bill ."