KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Tennessee

HB2358 • 2026

Human Resources, Department of

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

Children
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Hawk, Massey
Last action
2026-04-08
Official status
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the exact amount to be transferred annually from the TANF rainy-day fund to the CCDF.

Tennessee Bill to Help Child Care Funding

This bill requires Tennessee's Department of Human Services to transfer part of its TANF rainy-day fund to help families with child care through the Smart Steps program, and to publish an annual report on these funds.

What This Bill Does

  • Requires the department to annually move money from the TANF rainy-day fund to the Child Care and Development Fund (CCDF) for families who need it but can't get help due to lack of CCDF funds.
  • Limits how much money can be moved each year, not exceeding 30% of the TANF rainy-day fund as allowed by federal law.
  • Requires the department to use certain rules and fees from September 2025 for families in the Smart Steps program.
  • Makes the department publish an annual report on its website about how much money is spent and left over in both the TANF program and CCDF.

Who It Names or Affects

  • Tennessee's Department of Human Services
  • Families who need child care assistance through the Smart Steps program

Terms To Know

TANF rainy-day fund
A special savings account for Tennessee’s Temporary Assistance for Needy Families (TANF) program to help with unexpected needs.
Child Care and Development Fund (CCDF)
Money from the federal government that helps states pay for child care services for low-income families.

Limits and Unknowns

  • The bill does not specify how much money will be moved each year, only that it cannot exceed 30% of the TANF rainy-day fund.
  • There is a risk that misusing TANF funds could lead to penalties and reduced funding for the Department of Human Services.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB2358

Plain English: This amendment requires Tennessee's Department of Human Services to annually transfer federal TANF block grant funds to the Child Care and Development Fund (CCDF) to eliminate the Smart Steps Program waitlist and support the program.

  • The department must annually transfer federal Temporary Assistance for Needy Families (TANF) block grant funds to the CCDF, up to $25 million unless the governor determines a higher amount is necessary.
  • The amendment sets limits on how much can be transferred and ensures that these transfers do not reduce funding intended for other programs like the Tennessee Opportunity Pilot Grant Program.
  • The department must publish an annual report detailing TANF program balances, expenditures, and the number of children served by the Smart Steps Program.
  • The exact amount transferred each year depends on federal law limits and the governor's determination if more than $25 million is needed.
  • Some parts of the amendment are technical and may be hard to understand without additional context about federal laws and regulations.
Amendment 1-0 to SB1921

Plain English: The amendment requires the Tennessee Department of Human Services to annually transfer federal TANF block grant funds to the Child Care and Development Fund (CCDF) to eliminate the Smart Steps Program waitlist and support the program.

  • Requires annual transfers from the TANF block grant to the CCDF to help fund child care assistance through the Smart Steps Program.
  • Limits the transfer amount to $25 million per fiscal year unless the governor determines a higher amount is necessary, but not exceeding federal limits.
  • Ensures that transferred funds supplement and do not replace existing CCDF funding.
  • The exact impact on TANF block grant funding for other programs is unclear without further details.
  • Implementation specifics are left to the department's discretion within current resources.

Bill History

  1. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  2. 2026-04-08 Tennessee General Assembly

    Placed behind the budget

  3. 2026-04-08 Tennessee General Assembly

    Sponsor(s) Added.

  4. 2026-04-01 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/8/2026

  5. 2026-04-01 Tennessee General Assembly

    Action Def. in s/c Finance, Ways, and Means Subcommittee to 4/8/2026

  6. 2026-03-25 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/1/2026

  7. 2026-03-23 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  8. 2026-03-23 Tennessee General Assembly

    Rec. for pass; ref to Finance, Ways, and Means Committee

  9. 2026-03-18 Tennessee General Assembly

    Placed on cal. Government Operations Committee for 3/23/2026

  10. 2026-03-17 Tennessee General Assembly

    Rec. for pass. if am., ref. to Government Operations Committee

  11. 2026-03-17 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 8, Nays 0 PNV 0

  12. 2026-03-11 Tennessee General Assembly

    Placed on cal. Health Committee for 3/17/2026

  13. 2026-03-11 Tennessee General Assembly

    Placed on Senate Health and Welfare Committee calendar for 3/17/2026

  14. 2026-03-11 Tennessee General Assembly

    Action deferred in Senate Health and Welfare Committee to 3/18/2026

  15. 2026-03-10 Tennessee General Assembly

    No Action Taken

  16. 2026-03-04 Tennessee General Assembly

    Placed on cal. Health Committee for 3/10/2026

  17. 2026-03-04 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Health Committee

  18. 2026-03-04 Tennessee General Assembly

    Placed on Senate Health and Welfare Committee calendar for 3/11/2026

  19. 2026-03-04 Tennessee General Assembly

    Action deferred in Senate Health and Welfare Committee to 3/11/2026

  20. 2026-03-02 Tennessee General Assembly

    Sponsor(s) Added.

  21. 2026-02-25 Tennessee General Assembly

    Placed on s/c cal Health Subcommittee for 3/4/2026

  22. 2026-02-25 Tennessee General Assembly

    Placed on Senate Health and Welfare Committee calendar for 3/4/2026

  23. 2026-02-25 Tennessee General Assembly

    Action deferred in Senate Health and Welfare Committee to 3/4/2026

  24. 2026-02-23 Tennessee General Assembly

    Sponsor(s) Added.

  25. 2026-02-18 Tennessee General Assembly

    Placed on Senate Health and Welfare Committee calendar for 2/25/2026

  26. 2026-02-11 Tennessee General Assembly

    Action deferred in Senate Health and Welfare Committee to 2/25/2026

  27. 2026-02-10 Tennessee General Assembly

    Sponsor(s) Added.

  28. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Health Subcommittee

  29. 2026-02-05 Tennessee General Assembly

    P2C, ref. to Health Committee - Government Operations for Review

  30. 2026-02-05 Tennessee General Assembly

    Sponsor(s) Added.

  31. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  32. 2026-02-04 Tennessee General Assembly

    Placed on Senate Health and Welfare Committee calendar for 2/11/2026

  33. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  34. 2026-02-02 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Health and Welfare Committee

  35. 2026-01-23 Tennessee General Assembly

    Sponsor(s) Added.

  36. 2026-01-22 Tennessee General Assembly

    Introduced, Passed on First Consideration

  37. 2026-01-21 Tennessee General Assembly

    Filed for introduction

Official Summary Text

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
.

Current Bill Text

Read the full stored bill text 
SENATE BILL 1921
By Massey

HOUSE BILL 2358
By Hawk
HB2358
011335
- 1 -

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 71-5-1204(a), is amended by adding
the language ", except as provided in § 71-5-1205," immediately after "remain unobligated".
SECTION 2. Tennessee Code Annotated, Title 71, Chapter 5, Part 12, is amended by
adding the following as a new section:
71-5-1205.
(a) As used in this section:
(1) "Child care and development fund" or "CCDF" means the federal child
care and development fund established in 45 CFR 98; and
(2) "Smart steps program" means the state child care assistance
program administered by the department.
(b)
(1) The department shall annually transfer a portion of the TANF rainy-
day fund, as described in § 71-5-1204, to the child care and development fund in
an amount sufficient to fund participation in the smart steps program by a family
who:
(A) Meets the eligibility requirements of the smart steps program;
(B) Elects to participate in the program; and
(C) Is unable to be served due to insufficient CCDF funds.
(2) Such funds must not be utilized to supplant any current use of the
child care and development fund.

- 2 - 011335

(c) The TANF rainy-day funds transferred, as described in subsection (a), must
not exceed thirty percent (30%), as described in Title IV-A of the Social Security Act (42
U.S.C. § 604) or any other amount permitted by the federal government.
(d) The eligible limit, sliding scale fee schedule, and co-pay policies for the smart
steps program that were in effect on September 30, 2025, must be utilized as a
minimum standard for such program.
(e) The department shall annually publish 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. The report must include:
(1) Expenditures in the prior fiscal year by expense category;
(2) Obligated balances by expense category; and
(3) Any unobligated balance.
(f) The department is authorized to promulgate rules to effectuate this section.
The rules must be promulgated in accordance with the Uniform Administrative
Procedures Act, compiled in title 4, chapter 5.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.