TANF State Expenditure Integrity Act

Summary#

This bill would add new federal authority and requirements to monitor how States and their subrecipients use funds under the Temporary Assistance for Needy Families (TANF) program. It directs the Secretary of Health and Human Services to create a framework for monitoring subrecipient use of TANF funds, to set related State plan requirements or formats if needed, and to require States to provide additional reports as necessary. The bill would create a TANF Program Integrity Unit at the Administration for Children & Families to carry out that monitoring and would increase the amount available under section 403(a)(1)(C) by $10,000,000 per year to staff and operate the unit. The Secretary must send an annual report to Congress about the unit’s activities, publish a notice of proposed rulemaking within two years, and the amendments take effect on the later of the first day of the fifth calendar quarter after enactment or the first day of the next Federal fiscal year. The bill also adds an enforcement remedy: if the Secretary finds that a subrecipient intentionally misused TANF funds, the Secretary must notify the State and require the State to spend an amount equal to the misused funds for cash assistance directly to families with incomes below 100 percent of the poverty line.

What it means for you#

  • For States and subrecipients: States could face new monitoring requirements, reporting duties, and possible required spending if intentional misuse by a subrecipient is found. The bill authorizes federal monitoring activity by a newly created unit in the Administration for Children & Families.
  • For families with very low income: If the Secretary finds intentional misuse of TANF subrecipient funds, the State could be required to provide an amount equal to the misused funds as direct cash assistance to families with incomes below the poverty line.
  • For the public: The Secretary must report yearly to Congress on the monitoring activities and publish a rulemaking notice within two years of enactment.

Expenses#

  • The bill increases by $10,000,000 per fiscal year the amount available under section 403(a)(1)(C) to staff and operate the TANF Program Integrity Unit.
  • If the Secretary finds intentional misuse, the State would be required to expend an amount equal to the misused funds for direct cash assistance; the bill text does not state how those State expenditures would be funded.
  • No publicly available information on other estimated costs or broader fiscal impacts is included in the bill text.

Proponents' View#

The bill’s stated purpose in the text is to prevent and address intentional misuse of TANF subrecipient funds by creating monitoring authority, a dedicated program integrity unit, and a remedy that directs misused amounts to direct cash assistance for families with incomes below the poverty line.

Opponents' View#

No publicly available information.