1. Short title This Act may be cited as the Improve Transparency and Stability for Families and Children Act . 2. Deadlines for the obligation and expenditure of funds (a) In general Section 404(e) of the Social Security Act ( 42 U.S.C. 604(e) ) is amended to read as follows: (e) Deadlines for obligation and expenditure of funds by States (1) In general Except as provided in paragraph (2), a State to which funds are paid, after the effective date of this subsection, under section 403(a)(1) for a fiscal year shall obligate the funds not later than the end of the succeeding fiscal year, and shall expend the funds not later than the end of the 2nd succeeding fiscal year. (2) Exception for limited amount of funds set aside for future use (A) In general Notwithstanding paragraph (1) of this subsection, a State to which funds are paid under section 403(a)(1), after the effective date of this subsection, for a fiscal year may reserve not more than 15 percent of the funds for future use in the State program funded under this part, subject to subparagraph (B) of this paragraph. (B) Limitation The total amount held in reserve by a State under subparagraph (A) of this paragraph shall not exceed an amount equal to 50 percent of the total amount paid to the State under section 403(a)(1) for the then preceding fiscal year. (C) Notice of intent to reserve funds A State that intends to reserve funds under subparagraph (A) shall notify the Secretary of the intention not later than the end of the period in which the funds are available for obligation without regard to subparagraph (A) of this paragraph. . (b) Effective date The amendment made by subsection (a) shall take effect on October 1, 2025. 3. Two-year reauthorization of the Temporary Assistance for Needy Families program Activities authorized by part A of title IV (other than under section 403(c) or 418) and section 1108(b) of the Social Security Act shall continue through September 30, 2026, in the manner authorized for fiscal year 2023, and out of any money in the