This bill would limit the ways by which and time span over which states can give cash benefits from state coffers to welfare recipients.
The Center on Budget and Policy Priorities states that
Congress created the Temporary Assistance for Needy Families (TANF) block grant...as part of a federal effort to “end welfare as we know it.” Under TANF, the federal government provides a block grant to the states, which use these funds to operate their own programs. In order to receive federal funds, states must also spend some of their own dollars on programs for needy families (they face severe fiscal penalties if they fail to do so). This state-spending requirement, [is] known as the “maintenance of effort” (MOE) requirement.
Families can receive TANF funds for five years. States can give cash payments that count as part of their MOE requirement indefinitely. This bill would disallow that, amending the time limit on cash payments to five years and limiting the mode in which cash could be offered after that five-year period to "transitional cash assistance," which is defined as
an amount necessary to replace the loss of any food assistance, rent assistance, low-income energy assistance, and childcare assistance lost as a result of increased family income from earnings or child support payments.