Preventing Waste in TANF

Summary#

This bill would change the rules for the program that gives block grants to States for Temporary Assistance for Needy Families (TANF). It would: require that a federal payment-integrity law apply to State TANF programs; direct the Department of Health and Human Services (HHS) to send Congress a plan within 1 year that aims to reduce or eliminate improper payments by States within 10 years; limit use of grant funds to families with income below twice the federal poverty guidelines; set deadlines for when States must obligate and spend TANF grant funds, with a limited reserve option (up to 15 percent of a year’s funds, and total reserves not to exceed 50 percent of the prior year’s payment) and a notice requirement; and bar States from using these federal funds to replace State or local funds (an anti-supplanting rule) and require a chief executive officer certification that Federal funds will not supplant State or non-Federal funds. The bill would take effect October 1, 2027.

What it means for you#

  • Families seeking TANF-funded assistance would be eligible only if their income is less than twice the federal poverty guidelines, when a State follows this rule.
  • States would have clearer deadlines for obligating and spending TANF grant dollars.
  • States could hold a limited amount of TANF funds in reserve for future use, but only up to the caps in the bill.
  • States would need to certify that federal TANF funds do not replace State or local funding for the same purposes.
  • HHS must produce a written plan within 1 year describing how to reduce or eliminate improper payments made under TANF within 10 years.

Expenses#

No publicly available information.

Proponents' View#

The bill’s text states its aims: to target TANF funds to low-income families, strengthen program integrity guardrails for State spending, require measurement of improper payments, and set goals to eliminate fraud and improper payments.

Opponents' View#

No publicly available information.