Tennessee legislation · 114th General Assembly

Tennessee HB2358: AN ACT to amend Tennessee Code Annotated, Title 71, relative to temporary assistance.

Status: Chaptered, May 26, 2026

Fiscal Summary OTHER FISCAL IMPACT Complying with the provisions of the proposed legislation may constitute a misuse of Temporary Assistance for Needy Families funds and result in penalties issued and a decrease of funding to the Department of Human Services of up to $57,000,000. Bill Summary 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 economic 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 requirements 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 care 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) expenditures in the prior fiscal year by expense category, (ii) obligated balances by expense category