Jobs and Opportunity with Benefits and Services (JOBS) for Success Act of 2025

May 1, 2025
May 1, 2025

Summary

Updates and continues funding for the TANF program, changing how success is measured to focus on helping people get and keep jobs and stay out of poverty.

What problem does this solve?

The current welfare system, known as TANF, does not always help people find lasting jobs, and states can use the money for things other than helping poor families. This bill changes the rules to focus on job success, requires personal plans for recipients, and makes sure the money is spent on its main goals.

What does this bill do?

Changes how state success is measured
Moves from tracking participation in activities to measuring actual work outcomes. States will be graded on how many people get jobs after leaving the program, keep those jobs, and their earnings.
Requires individual opportunity plans
Requires states to assess each person's skills and barriers to work. Based on this, the state and the person will create a signed plan with an employment goal and steps to reach it.
Reauthorizes TANF funding
Continues funding for family assistance grants, healthy marriage and responsible fatherhood grants, tribal grants, and grants to territories from fiscal year 2026 through 2030.
Targets funds to needy families and core activities
Prohibits using funds for families with income over 200% of the poverty line. Requires states to spend at least 25% of federal and state funds on core activities like work support and training.
Prohibits direct spending on child care
Forbids states from using TANF grants for direct spending on child care services. However, it increases the amount of funds states can transfer to the Child Care and Development Block Grant program to 50%.
Strengthens program integrity
Applies federal laws about improper payments to state TANF programs. This is meant to reduce errors and fraud in how benefits are given out.
Creates a public performance dashboard
Requires the Department of Health and Human Services (HHS) to create a public website with a dashboard showing how well each state's program is performing on the new work outcome measures.
Adds poverty reduction as a program goal
Adds a new official purpose to the TANF program: to reduce child poverty by helping needy parents get, keep, and advance in jobs.
Bans use of funds at marijuana shops
Prohibits people from using their electronic benefit cards to get cash or make purchases at any store that sells marijuana.
Eliminates old programs
Removes several outdated parts of the TANF program, including supplemental grants for certain states, bonuses for high performance, and welfare-to-work grants.

Who does this affect?

  • Low-income families with children
  • State welfare agencies
  • Unemployed and underemployed parents

What is the real world impact?

Modernizes the welfare system
Aims to update the TANF program by focusing on measurable job outcomes, ensuring that federal funds help people achieve long-term employment and financial stability.
Creates barriers for parents
Prohibits states from using TANF funds for direct spending on child care. This could make it much harder for single parents to meet the new, stricter work requirements.
Reduces welfare rolls through stricter rules
The new universal work engagement rules and penalties for not following them could make it harder for people to get or keep assistance. This might lower program costs by removing people from the rolls rather than by helping them find good jobs.

When does this start?

Most provisions will take effect on October 1, 2026, with specific deadlines for states and federal agencies to implement the new rules.
State performance baseline
States must begin collecting data in fiscal year 2027 to set the initial performance levels for the new work outcome measures.
Negotiated performance levels
States and the Secretary of Health and Human Services will begin negotiating the required performance levels for each fiscal year starting with fiscal year 2028.
Individual opportunity plans for current recipients
States have one year from the effective date (until October 1, 2027) to create individual opportunity plans for people already receiving assistance.
Improper payment regulations
The Secretary of Health and Human Services must issue regulations for how states will review and report improper payments within two years of the law's enactment.
Data exchange standards rule
The Secretary of Health and Human Services must issue a proposed rule on data exchange standards within 24 months of the law's enactment.