2026-06632Proposed RuleSignificantWallet

HHS Overhauls TANF Work Rules: Ditches 2005 Baseline, Bans Tiny Checks

Published Date: 4/6/2026

Proposed Rule

Summary

The government is updating how it counts work participation for families getting TANF help. They’re changing the base year for measuring progress from 2005 to 2015 and won’t count tiny monthly payments under $35 anymore. These changes, required by a 2023 law, could affect states’ reported success and start soon, so everyone should pay attention!

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Caseload Credit Base Year Reset

The rule resets the caseload reduction credit base year used to calculate TANF work participation targets from FY 2005 to FY 2015, effective October 1, 2025. That means some states will get a smaller caseload reduction credit and may face higher work participation rate targets.

Ban on Counting 'Small Checks' Under $35

Starting October 1, 2025, families who receive less than $35 in a month from a Separate State Program (SSP) funded only with state MOE funds will be excluded from both the numerator and denominator of a State's TANF work participation rate calculation. States that used tiny SSP payments (the so-called "small checks" approach) will no longer be able to count those families for work-rate purposes and may either stop those payments or raise them to $35.

Estimated Small Reduction in Block Grants

The Congressional Budget Office estimated that as a result of these statutory changes, HHS would reduce some state TANF block grants slightly, reducing direct federal spending by about $5 million over the 2023–2033 period. HHS states it does not expect large federal spending effects and expects most states to still meet targets.

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Key Dates

Effective Date
Published Date
Comments Due
10/1/2025
4/6/2026
5/6/2026

Department and Agencies

Department
Independent Agency
Agency
Health and Human Services Department
Children and Families Administration
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