Reduce Bureaucracy to Uplift Families Act

This bill lowers the maximum percentage of federal family assistance funds states can spend on administrative costs from 15% to 10% (amending Social Security Act sections 404(b) and 409(a)(7)(B)(i)(I)(dd)). It directly affects states administering federal programs like Temporary Assistance for Needy Families (TANF), requiring them to reduce overhead spending on administrative tasks. States that fail to comply face a penalty of up to a 5% reduction in their next year's federal grant funds. The changes take effect October 1, 2026.