Bill
HB 2733
Illinois HB 2733 creates transitional benefits for TANF/SNAP and transitional child care to soften benefit cliffs as incomes rise, with phased reductions and optional participation.
Note: the provided document includes two different bills titled HB 2733 (an Arizona bill about unmanned aircraft and an Illinois bill on transitional benefits). The summary below covers the Illinois HB 2733 described under "An Act concerning public aid" (DHS — Transitional Benefits).
Overview
- Purpose: Create a transitional benefits framework so Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), and child care assistance recipients do not immediately lose benefits when their income rises above programeligibility limits. The goal is to smooth the benefit “cliff,” incentivize work and financial stability, and facilitate continued access to child care while earnings increase.
- Sponsors & procedural status (IL): Introduced 2/6/2025 by Rep. Steven Reick with multiple co‑sponsors; referred to Rules and to the Appropriations—Health & Human Services Committee. Implementation is subject to appropriation and any required federal waivers or approvals.
Key provisions — TANF & SNAP transitional benefits
- The Department of Human Services (DHS), subject to appropriation and federal approvals, must develop and implement a transitional benefits program that prevents an immediate complete loss of TANF or SNAP when income exceeds program maximums.
- Benefits will step down gradually, proportionate to household income according to this schedule (based on monthly household income expressed as percent of the Federal Poverty Level (FPL)):
- ≤175% FPL: 100% of the monthly benefit
- >175%–≤180% FPL: 80%
- >180%–≤185% FPL: 60%
- >185%–≤190% FPL: 40%
- >190%–≤200% FPL: 20%
- Recipients receiving transitional benefits must continue to comply with TANF and SNAP program requirements (including work requirements).
- Transitional TANF benefits are excluded from the TANF 60‑month lifetime limit.
- DHS must adopt implementing rules (Administrative Procedure Act provisions referenced).
Key provisions — Transitional child care assistance
- DHS, subject to appropriation, must implement by July 1, 2026 a voluntary program allowing recipients to receive transitional child care benefits without first qualifying for full child care benefits.
- Sliding-scale child care benefit levels for households with incomes above the eligibility threshold for full benefits (percent of the State base rate):
- >eligibility threshold–≤240% FPL: 80% of State base rate
- >240%–≤260% FPL: 60%
- >260%–≤280% FPL: 40%
- >280%–≤300% FPL: 20%
- Recipients pay the remaining sliding fee to providers. Participants may opt out anytime but cannot re‑enter the program a second time.
- DHS must track program participation and effectiveness and submit an annual report to the General Assembly by Sept. 1, 2027 and each year thereafter, measuring whether the program encourages employment above the wage threshold for full child care eligibility.
- DHS must pursue all necessary federal waivers to implement the program.
Administrative/access provisions
- Upon federal approval, DHS shall limit initial applications for SNAP, TANF, or Child Care Assistance to a one‑page form available on DHS’s website.
- Periodic eligibility review forms for participants may be submitted as an attachment to the Illinois income tax return.
- DHS and the Department of Revenue must adopt rules to implement these provisions.
Fiscal and implementation considerations
- Implementation is explicitly subject to appropriation and federal waivers/approvals; the bill does not specify program funding levels.
- Anticipated impacts include higher short‑term state expenditures for transitional benefits, administrative costs for program design and reporting, but potential long‑term reductions in benefit dependency and better employment outcomes.
Who is affected
- Primary: current and prospective TANF, SNAP, and child care assistance recipients whose earnings rise above program thresholds.
- Secondary: DHS (administration, reporting, waiver requests), Department of Revenue (rulemaking), child care providers (sliding fee payments), and taxpayers (if costs are appropriated).
Effective date / deadlines
- Implementation of the transitional child care program: by July 1, 2026 (subject to appropriation).
- First DHS annual report due Sept. 1, 2027 (then annually).
- Overall program roll‑out depends on appropriations and securing any required federal approvals/waivers.
Compiled from official sources — confirm details with the bill’s official record.
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