Preventing Waste, Fraud, and Abuse in TANF Act
HB8872, titled the Preventing Waste, Fraud, and Abuse in TANF Act, would amend part A of title IV of the Social Security Act to tighten federal oversight of Temporary Assistance for Needy Families (TANF) block grant spending. The bill directs that the Payment Integrity Information Act of 2019 apply to states administering TANF in the same manner it applies to federal agencies, and it requires the Secretary of Health and Human Services to submit a plan to Congress within one year for reducing or eliminating improper payments within 10 years.
The bill also narrows how TANF funds may be used by requiring states to target assistance and services to families with incomes below twice the federal poverty guidelines. It imposes new timing rules for obligating and spending funds, generally requiring states to obligate funds by the end of the next fiscal year and spend them by the end of the second succeeding fiscal year, while allowing only limited reserves for future use. In addition, it prohibits states from using federal TANF funds to replace state or local spending, and requires a gubernatorial certification that federal funds will supplement rather than supplant non-federal funds. The amendments would take effect on October 1, 2027.
If enacted, the bill would directly amend the Social Security Act provisions governing TANF state grants, adding new federal compliance, reporting, and anti-supplantation requirements. It would affect state human services agencies and governors by imposing income-targeting rules, reserve limits, spending deadlines, and certification obligations, while also expanding federal oversight of improper payments and program integrity. The bill would likely reduce state flexibility in administering TANF funds and could change how states budget, track, and document use of block grant dollars.
The available context suggests the bill was advanced in the House with a reform-oriented, anti-fraud framing, and the title and text indicate a strong emphasis on accountability, program integrity, and limiting misuse of federal welfare funds. There are no committee transcripts or recorded votes provided, so there is no direct evidence of bipartisan support or opposition in the supplied materials. The bill was reported with an amendment, indicating some committee-level modification, but the overall tone of the measure is clearly aimed at tightening oversight rather than expanding benefits.
The main points of contention are likely to be the bill’s restrictions on state discretion and its stricter eligibility and spending rules. Supporters would likely favor the anti-fraud, anti-waste, and anti-supplantation provisions, while critics may argue that the income cap, reserve limits, and accelerated expenditure deadlines could constrain states’ ability to respond to local needs and manage TANF funds flexibly. The requirement that states certify funds will not replace state or local spending may also be controversial because it could affect existing budgeting practices and state-federal funding relationships.