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HB 127

TANF funds; prohibit providing to any person whose income is more than 200% of poverty level.

2025 Regular Session

TANF funds barred for any household with income above 200% of the federal poverty level, restricting benefits to lower-income families and shifting demand to other programs.

Died In Committee
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Bill Summary · HB 127

HB 127 — Summary (TANF income cap proposal)

Status: Introduced August 15, 2025; Died in Committee

Note: The materials you provided do not include the full bill text for HB 127 described by the title. The summary below is based on the bill title and legislative status you supplied — "TANF funds; prohibit providing to any person whose income is more than 200% of poverty level." If you can provide the bill text or committee report for this specific version, I can produce a more detailed, provision-by-provision summary.

Main purpose / intent

The bill would bar distribution of Temporary Assistance for Needy Families (TANF) funds or services to any individual or household whose income exceeds 200% of the federal poverty level (FPL). The purpose, as suggested by the title, is to restrict TANF eligibility/benefits to lower-income households and exclude families with incomes above that threshold.

Key provisions (inferred from title)

  • Establishes a 200% FPL income eligibility ceiling for receiving TANF-funded cash assistance, services, or supports.
  • Requires income determination and periodic verification to ensure recipients do not exceed 200% FPL.
  • May specify treatment of household composition, earned vs. unearned income, and treatment of public benefits when calculating eligibility (text not provided).
  • Likely affects all TANF-funded programs administered by the state (cash benefits, case management, job services, child care subsidies tied to TANF, etc.), unless the bill contains carve-outs.

Who would be affected

  • Primary: Current and prospective TANF recipients whose household income is at or below, or just above, the 200% FPL threshold. Households with incomes above 200% FPL would be ineligible for TANF funds.
  • State/local human services agencies: changes to intake, eligibility determination, monitoring, and appeals processes; staff training and IT updates.
  • Service providers and contractors that receive TANF funding to deliver employment, child-care, or supportive services.
  • Broader safety-net: households losing TANF supports may increase demand for other state/local programs (SNAP, Medicaid, subsidized child care, community services).

Fiscal and administrative implications (general considerations)

  • Potential reduction in TANF caseload and expenditures if recipients above 200% FPL are removed; magnitude depends on how many current recipients exceed that threshold.
  • Administrative costs to implement stricter income verification (system changes, staff time, appeals).
  • Possible federal considerations: TANF is a block grant with flexible state rules, but states must meet certain reporting and maintenance-of-effort (MOE) requirements; changes could affect program outcomes and reporting.
  • Secondary impacts: increased demand on other public programs or community services if affected families lose TANF-funded supports.

Procedural / timeline aspects

  • Bill was filed Aug 15, 2025.
  • Died in committee (no enactment). Because it did not advance, it did not become law or take effect.

Uncertainties / missing information

  • The full statutory language (definitions, calculations, grandfathering, exceptions, effective date, enforcement, appeals) is not included in the materials provided. Those details materially affect impacts and implementation requirements.
  • The bill may have included carve-outs (e.g., for specific services, transitional benefits, or households with special circumstances) that would change who is affected.

If you want, I can:
- Review the actual bill text (if you provide it) and produce a section-by-section summary and fiscal impact estimate.
- Model potential caseload or budgetary effects given state TANF caseload data.

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

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