TANF State Expenditure Integrity Act of 2025
Mar 14, 2025
Introduced: Mar 14, 2025
Mar 14, 2025
Introduced: Mar 14, 2025
Summary
Creates a new federal unit to watch how states spend welfare money and punishes states that use the funds improperly.
What problem does this solve?
States receive federal money to help families in need, but sometimes this money is not used for its intended purpose. This bill creates a special unit to monitor how this money is spent and requires states that misuse funds to pay the amount back to poor families.
What does this bill do?
Creates a TANF Program Integrity Unit
Establishes a new unit within the Administration for Children & Families to monitor how states and their partners use federal welfare funds.
Adds new penalty for misusing funds
Requires states that intentionally misuse funds to spend an equal amount on direct cash assistance for families living below the poverty line.
Develops a new monitoring system
Directs the Secretary of Health and Human Services to create a new system for monitoring how organizations that receive state TANF funds use the money.
Provides funding for the new unit
Increases the TANF budget by $10 million each year to pay for the staff and operations of the new Program Integrity Unit.
Requires annual reports to Congress
Mandates that the Secretary of Health and Human Services submit a yearly report to Congress detailing the activities of the new integrity unit.
Who does this affect?
- State governments
- Low-income families
What is the real world impact?
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Ensures welfare funds reach families in need
Creates stronger oversight to make sure that federal money for poor families is spent correctly and not wasted or used for other purposes by states or the groups they give money to.
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Increases federal oversight of state programs
Establishes a new federal unit to monitor state-run programs, which could be seen as increasing federal control. This adds a new layer of government and costs $10 million per year to operate.
When does this start?
The changes would take effect over a year after the bill becomes law, with specific rules to be created within two years.
Deadline for New Rules
The Secretary of Health and Human Services must publish proposed rules to implement these changes within two years of the bill becoming law.

