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H.R. 8872 · House bill · 119th Congress
This bill limits how and when states may use Temporary Assistance for Needy Families (TANF) funds and establishes an eligibility threshold for all TANF-funded assistance and services.
Currently, each state sets its own eligibility threshold for TANF-funded cash assistance. The bill establishes an upper limit on eligibility applicable to all assistance and services (including non-cash benefits) funded by TANF family assistance grants. Under this provision, only families with income under 200% of the federal poverty guidelines may receive TANF-funded assistance and services.
Further, the bill generally requires states to obligate TANF funds by the end of the fiscal year after they are paid and to spend funds by the end of the second fiscal year after they are paid. However, states may reserve a specified portion of their TANF funds for future use. (There is currently no requirement to use TANF funds within a specified period.)
The bill also explicitly requires states to use federal TANF funds to supplement, not replace, state and local funding for TANF-supported programs. (Current law requires states to spend a specified minimum amount on TANF-eligible activities and populations, known as the maintenance of effort requirement.)
States must also take specified steps to track and report on improper payments of federal funds (e.g., overpayments, underpayments, payments to ineligible recipients). Within one year of enactment, HHS must submit to Congress a plan to reduce or eliminate improper payments made by states under the TANF program within 10 years.
This Act may be cited as the “Preventing Waste, Fraud, and Abuse in TANF Act”.
(a) In general.— Section 404 of the Social Security Act (42 U.S.C. 604) is amended by adding at the end the following:
“(l) Applicability of payment integrity law.— The Payment Integrity Information Act of 2019 shall apply to a State with respect to the State program funded under this part in the same manner in which such Act applies to a Federal agency.”.
(b) Report to Congress.— Within 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Congress a written report that contains a plan to reduce or eliminate improper payments made by States under part A of title IV of the Social Security Act within 10 years.
Section 404 of the Social Security Act (42 U.S.C. 604) is further amended by adding at the end the following:
“(m) Establishing a threshold for families in need.— A State to which a grant is made under section 403(a)(1) shall use the grant only to provide assistance or services to a family whose income is less than twice the poverty guidelines updated periodically in the Federal Register under section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)).”.
Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended to read as follows:
“(e) Deadlines for obligation and expenditure of funds by States.—
(1) In general.— Except as provided in paragraph (2), a State to which funds are paid, after the effective date of this subsection, under section 403(a)(1) for a fiscal year shall obligate the funds not later than the end of the succeeding fiscal year, and shall expend the funds not later than the end of the 2nd succeeding fiscal year.
(2) Exception for limited amount of funds set aside for future use.—
(A) In general.— Notwithstanding paragraph (1) of this subsection, a State to which funds are paid under section 403(a)(1), after the effective date of this subsection, for a fiscal year may reserve not more than 15 percent of the funds for future use in the State program funded under this part, subject to subparagraph (B) of this paragraph.
(B) Limitation.— The total amount held in reserve by a State under subparagraph (A) of this paragraph shall not exceed an amount equal to 50 percent of the total amount paid to the State under section 403(a)(1) for the then preceding fiscal year.
(C) Notice of intent to reserve funds.— A State that intends to reserve funds under subparagraph (A) shall notify the Secretary of the intention not later than the end of the period in which the funds are available for obligation without regard to subparagraph (A) of this paragraph.”.
(a) In general.— Section 404 of the Social Security Act (42 U.S.C. 604) is further amended by adding at the end the following:
“(n) Limitation on use of Federal funds to replace State general revenue funds.— A State shall use Federal funds received under this part only to supplement funds that, in the absence of the Federal funds, would be made available from State and local sources for programs assisted under this part, and not to supplant the funds.”.
(b) State certification.— Section 402(a) of such Act (42 U.S.C. 602(a)) is amended by adding at the end the following:
“(9) Certification of State supplementation.— A certification by the chief executive officer of the State that the funds provided to the State under this part will not be used to supplant State or non-Federal funds for services and activities that promote the purposes of this part.”.
The amendments made by this Act shall take effect on October 1, 2027.