Eliminating Fraud and Improper Payments in TANF Act
- Sponsor
- Rep. Arrington, Jodey C. [R-TX-19]
- Committees
- Ways and Means Committee (primary)
- Last action
- Mar 21, 2025
Bottom line
The bill aims to enhance accountability and reduce fraud and improper payments in state-administered TANF programs by applying federal payment integrity standards.
What it actually does
This bill mandates that states administering the Temporary Assistance for Needy Families (TANF) program comply with the Payment Integrity Information Act of 2019. This means states will be required to identify, measure, and report on improper payments within their TANF programs, and develop plans to reduce them, similar to how federal agencies manage their own programs. It also requires the Secretary of Health and Human Services to develop a plan to eliminate improper TANF payments within 10 years.
Proponents argue
Proponents argue that this bill is a crucial step towards ensuring the integrity of federal funds allocated to states for welfare programs. They contend that by requiring states to measure and report improper payments, and by setting goals for their elimination, the bill will reduce waste, fraud, and abuse, thereby ensuring taxpayer money is used more efficiently and effectively to help those truly in need. Supporters believe it will lead to better stewardship of public resources and increase public trust in government programs.
Opponents contend
Opponents might argue that while the goal of reducing improper payments is laudable, this bill could impose significant new administrative burdens and costs on states, potentially diverting resources from direct aid to compliance activities. They may also raise concerns that overly stringent payment integrity measures could inadvertently create barriers for eligible individuals to access necessary benefits, or that the definition and measurement of 'improper payments' could be overly broad or complex to implement consistently across diverse state programs.
The bill is very short and clear, making it highly accessible for a reader to understand its core provisions and implications quickly.
Section 2(a)
Applicability of Payment Integrity Law to State TANF Programs
This provision amends the Social Security Act to require states to apply the Payment Integrity Information Act of 2019 to their Temporary Assistance for Needy Families (TANF) programs. This means states must implement systems to identify, measure, and report on improper payments, and establish corrective action plans to reduce them, mirroring the requirements placed on federal agencies for their own programs. The goal is to bring state-level TANF administration under the same rigorous financial oversight as federal programs.
Supporters argue
Supporters argue that extending federal payment integrity standards to state-run TANF programs is essential for accountability and fiscal responsibility. They believe it will lead to a more efficient use of taxpayer dollars by identifying and preventing improper payments, ultimately strengthening the program's ability to serve its intended beneficiaries effectively.
Critics contend
Critics may contend that this provision imposes an unfunded mandate on states, requiring them to divert resources from direct assistance to administrative compliance. They might also argue that the complexity of applying federal standards to diverse state programs could lead to implementation challenges and potentially hinder states' flexibility in administering TANF.
Tradeoffs
This provision balances the federal interest in ensuring fiscal accountability and reducing improper payments with the potential for increased administrative burden and reduced flexibility for state governments in managing their TANF programs.
Section 2(c)
HHS Report to Congress on Improper Payment Reduction Plan
This section mandates that the Secretary of Health and Human Services (HHS) submit a report to Congress within one year of the bill's enactment. This report must contain a comprehensive plan detailing how to reduce or eliminate improper payments made by states under the TANF program within a 10-year timeframe. This ensures federal oversight and strategic planning for long-term program integrity improvements.