H.R. 8872: Preventing Waste, Fraud, and Abuse in TANF Act

The "Preventing Waste, Fraud, and Abuse in TANF Act" aims to amend the Social Security Act, specifically targeting the Temporary Assistance for Needy Families (TANF) program. Here’s a breakdown of the key aspects of the bill:

Strengthening Program Integrity

The bill includes provisions to enhance the integrity of TANF programs by ensuring states comply with payment integrity laws. It mandates that:

• The Payment Integrity Information Act of 2019 applies to TANF programs in the same way it applies to federal agencies.
• The Secretary of Health and Human Services must submit a report to Congress within one year of the bill's enactment, outlining a plan to reduce or eliminate improper payments made by states under TANF over a period of ten years.

Targeting Funds to Families in Need

To ensure that funds are directed to families most in need, the bill establishes that:

• States receiving grants must only use these funds to assist families whose income is less than twice the federal poverty guidelines.

Deadlines for Fund Use

The bill sets specific timelines for states to adhere to regarding the obligation and expenditure of TANF funds:

• States must obligate TANF funds within one fiscal year and expend them within two fiscal years following the receipt of funds.
• States are allowed to reserve up to 15% of those funds for future use, provided certain limits are not exceeded.

Prohibiting Misuse of Federal Funds

A critical element of the bill is the prohibition against states using federal TANF funds to replace their own spending. This includes:

• States must use federal funds only to supplement state or local funds and may not use them to cover expenses that would have been funded by state revenues.
• Each state must certify that the federal funds provided will not replace state or local funding efforts.

Effective Date

The amendments proposed by this act will take effect on October 1, 2027.

Relevant Companies

None found.