TN HB2358

Requires the Department of Human Services to annually transfer funds from the TANF rainy-day fund to the federal Child Care and Development Fund (CCDF) to serve eligible families on the Smart Steps child care assistance program waitlist

Caps TANF rainy-day fund transfers at 30% as permitted under federal law (42 U.S.C. § 604), and prohibits using transferred funds to supplant existing CCDF funding

Establishes the Smart Steps program eligibility limits, sliding scale fee schedule, and co-pay policies in effect on September 30, 2025 as minimum standards

Mandates annual publication of a report on TANF and CCDF balances and expenditures, including prior fiscal year spending by category, obligated balances, and unobligated balances

Takes effect immediately upon becoming law