H.R. 2359 — Improve Transparency and Stability for Families and Children Act

This section establishes deadlines, effective October 1, 2026, for states to obligate Temporary Assistance for Needy Families (TANF) block grant funds by the end of the succeeding fiscal year and expend them by the end of the second succeeding fiscal year. (Thus, for funds received in FY2027, states must obligate by September 30, 2028, and expend by September 30, 2029.) It permits states to reserve up to 15% of such funds for future use (with total reserves not exceeding 50% of the prior fiscal year's grant amount), subject to notice to the Secretary of Health and Human Services by the standard obligation deadline.