HR2108-119

What This Bill Does

The TANF State Expenditure Integrity Act adds federal monitoring of how TANF subrecipients use section 403(a)(1) funds. HHS must develop a framework to identify intentional misuse of subrecipient funds, supplementing but not replacing single state audits. The Secretary may add state plan requirements or formats and require states to provide additional information beyond existing TANF reports. The bill creates a TANF Program Integrity Unit inside the Administration for Children and Families to conduct the monitoring and increases TANF-related funding by $10 million each fiscal year for staffing, operations, and related functions. HHS must report annually to Congress on the unit's activities. If monitoring finds intentional misuse, HHS must notify the state and require the state, in addition to any existing penalty, to spend an equal amount on cash assistance directly to families with income below 100 percent of the poverty line. HHS must publish a notice of rulemaking within two years, and the amendments take effect on the later of the fifth calendar quarter after enactment or the first federal fiscal year after enactment.

Who Benefits and How

Families below the poverty line benefit because states must redirect amounts equal to intentionally misused TANF funds into direct cash assistance. TANF participants benefit from stronger oversight of subrecipient spending that is supposed to support low-income families. Federal TANF oversight staff benefit from a dedicated Program Integrity Unit and $10 million annual staffing and operations support. Congressional welfare oversight committees benefit from annual reports on TANF subrecipient monitoring activities.

Who Bears the Burden and How

State TANF agencies must provide additional information, comply with new plan formats, and replace intentionally misused amounts with cash assistance. TANF subrecipients face monitoring aimed at identifying intentional misuse of federal funds. The ACF TANF Program Integrity Unit must staff and operate the new monitoring function. HHS must conduct rulemaking within two years and administer the new penalty remedy.

Key Provisions

• Requires HHS to develop a TANF subrecipient monitoring framework for intentional misuse.
• Creates a TANF Program Integrity Unit inside the Administration for Children and Families.
• Provides $10 million annually for staffing, operations, and related integrity functions.
• Requires states to spend intentionally misused amounts on cash assistance for families below poverty.
• Directs annual congressional reports and rulemaking within two years.