Substitute House Bill No. 7104 seeks to amend the eligibility criteria for the Temporary Family Assistance (TFA) program by allowing the Department of Social Services (DSS) to disregard specific income sources when assessing eligibility. The bill introduces provisions that enable DSS to exclude financial assistance from family members participating in pilot programs focused on direct cash transfers, as well as stipends from approved job training programs. The disregard for income from pilot programs can extend for up to 60 cumulative months, while job training stipends are disregarded for up to 36 cumulative months. This change aims to support families without penalizing them for engaging in programs that could improve their financial situation.

Furthermore, the bill repeals subsection (d) of section 17b-112 and replaces it with updated language that clarifies the income disregards and eligibility criteria, while maintaining existing gross earnings thresholds relative to the federal poverty level. It specifies that the first $50 of current child support received will not impact eligibility. The bill also mandates DSS to maintain a publicly available list of approved pilot programs and ensure participants are informed about the potential effects on their benefit eligibility. The changes are set to take effect on July 1, 2025, and are expected to have a fiscal impact on the General Fund due to potential increases in TFA costs resulting from the income disregards.