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HB 2358

Human Resources, Department of - As introduced, directs 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 for a family that meets certain listed criteria; requires the department to annually publish on the department's website a report on certain listed expenditures and balances. - Amends TCA Title 71.

114th Regular Session (2025-2026) Introduced by David Hawk

Bill redirects TANF emergency reserves to fund Smart Steps childcare program for eligible families and requires annual expenditure reporting.

Senate substituted House Bill for companion Senate Bill.
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Bill Summary · HB 2358

Legislative bill overview

HB 2358 directs Tennessee's Department of Human Resources to annually transfer funds from the TANF (Temporary Assistance for Needy Families) rainy-day fund to the child care and development fund to support participation in the Smart Steps program for eligible families. The bill also requires the department to publish annual reports detailing expenditures and fund balances related to these transfers.

Why is this important

Child care access is a significant barrier to employment and economic stability for low-income families. This bill would create dedicated funding for a specific early childhood program, potentially expanding access while also mandating transparency about how rainy-day reserve funds—intended for economic downturns—are being deployed during normal budget years.

Potential points of contention

  • Rainy-day fund usage: Transferring emergency reserves during non-crisis years could leave the state vulnerable if economic conditions deteriorate and TANF funds are needed for their primary purpose
  • Program specificity: Dedicating funds to one particular program (Smart Steps) may limit flexibility in addressing broader child care needs or allow other programs to compete for the same funding
  • Undefined criteria: The bill references families "meeting certain listed criteria" but those criteria are not detailed in this summary, making it unclear who would benefit and at what cost

Compiled from official sources — confirm details with the bill’s official record.

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