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) meets the eligibility requirem ents of the smart steps program, (ii) elects to participate in the program, and (iii) is unable to be served due to insufficient child 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 f or 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) expenditures in the prior fiscal year by expense c ategory, (ii) obligated balances by expense category, (iii) any unobligated balance. RULEMAKING This bill authorizes the department to promulgate rules to effectuate this bill. ON APRIL 22, 2026, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED HOUSE BILL 2358, AS AMENDED. AMENDMENT #2 makes the following changes:  Clarifies that ""department, as used in the bill, means the department of human services.  Removes the requirement for the department to annually transfer a portion of the TANF rainy-day fund, as described in present law, to the child care and development fund in an amount sufficient to fund participation in the smart steps program by a family who (i) meets the eligibility requirements of the smart steps program, (ii) elects to participate in the program, and (iii) is unable to be served due to insufficient CCDF funds.  Revises what the department must include when it annually publishes on the department's website a report on the temporary assistance for needy families program's and the child care and development fund's balances and expenditures, including (i) expenditures in the prior fiscal year by expense category and funding source, (ii) obligated balances by expense category and funding source, (iii) any unobligated balance, including the balance of the TANF rainy-day reserve, (iv) a detailed accounting of all expenditures counted towards the fifteen-percent limitation on administrative expenditures established in federal law, and (v) the number of children served in the smart steps program during the prior fiscal year, disaggregated by funding source, including TANF funds, CCDF funds, and any other funding source utilized by the department."