HHS Proposes Making Block Grants Less of a Paperwork Maze
Published Date: 10/29/2026
Proposed Rule
Summary
The Department of Health and Human Services wants to make life easier for States and Tribal groups that get block grants by cutting out old, confusing rules. These changes will save time and hassle, making programs run smoother and clearer. If you want to share your thoughts, send comments by November 30, 2026—no extra costs, just simpler paperwork!
Analyzed Economic Effects
7 provisions identified: 5 benefits, 1 costs, 1 mixed.
LIHEAP application deadline and fund reversion
For the Low-Income Home Energy Assistance Program (LIHEAP), States, territories, Indian tribes, and tribal organizations must ensure all information needed to complete applications is received by December 15 of the fiscal year for which funds are requested, unless a later date is agreed. After December 15, funds will revert to the State(s) in which the tribe is located unless the State agrees to a later date, and the State is then responsible for providing LIHEAP services to the tribe's service population.
Change to time limits for spending block grants
The rule revises spending-time rules so that, except where statute imposes limits, there are no regulatory time limits on the expenditure of block grant funds. The final text explicitly notes statutory time limits remain for maternal and child health services, community mental health services, substance use prevention/treatment/recovery services, and the social services block grants (the SAMHSA block grants impose a two-year time limit for obligation and expenditure).
Simplify LIHEAP weatherization waiver process
The rule removes a detailed regulatory waiver framework for increasing LIHEAP weatherization spending from 15% up to 25% and instead preserves the underlying statutory waiver authority while allowing grantees to submit "good cause" documentation explaining why a waiver should be granted. ACF says this reduces administrative burden and restores Secretary discretion consistent with statute (42 U.S.C. 8624(k)).
Remove outdated fiscal-year clauses
The rule removes multiple transitional and time-bound regulatory clauses that reference long-past fiscal years so grantees do not have to interpret obsolete dates and triggers. ACF says removing this language will reduce confusion and administrative burden on States and Tribal grantees.
Restore SSBG statutory definitions and flexibility
The rule removes Section 96.71, which had added regulatory limits beyond Congress's text for the Social Services Block Grant (SSBG) — for example, an agency-created rule that room and board in a foster family home is not an "integral but subordinate" part of a social service. Removing this section restores enforcement to the Congressional definition and returns flexibility to States in allowable uses under SSBG.
Simplify SSBG annual reporting requirements
The rule amends SSBG annual reporting so that for the category "Other Expenditures" States must report only total dollar amounts (they do not need to report recipient counts or cost per adult/child). This includes carryover balances, funds transferred to/from SSBG, and administrative costs as defined by the State.
No new OMB paperwork burdens
The NPRM states it does not contain information collections requiring Office of Management and Budget (OMB) approval under the Paperwork Reduction Act and therefore will not create new paperwork burdens or change existing burdens subject to OMB review.
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Key Dates
Department and Agencies
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