TANF Integrity Act (H.R. 8872)

Summary

Creates stricter rules for how states spend federal money meant to help low-income families, making sure the funds are used correctly and not wasted.

What problem does this solve?

States have a lot of freedom with federal aid money, which sometimes means it doesn't help the poorest families or gets used for other things. This bill adds rules to make sure the money goes to needy families and requires states to track and stop incorrect payments.

What does this bill do?

Sets income limit for aid recipients

Requires that TANF funds only be used to help families whose income is less than 200% of the federal poverty level.

Requires tracking of incorrect payments

Makes states follow federal rules for tracking and reporting incorrect payments in the TANF program, just like federal agencies do.

Sets deadlines for states to spend funds

Requires states to commit to spending their yearly TANF funds within one year and fully spend them within two years to prevent money from sitting unused.

Prohibits states from replacing their own funds

Stops states from using federal TANF money to replace state or local money they would have otherwise spent on these programs.

Allows states to create a limited reserve fund

Permits states to save up to 15% of their annual funds for future needs, but caps the total amount they can hold in reserve at 50% of the previous year's grant.

Who does this affect?

Low-income families
State government agencies

What is the real world impact?

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Ensures aid reaches needy families

Aims to make the TANF program more effective by directing funds specifically to low-income families and preventing states from using the money for other purposes. This increases accountability for federal tax dollars.

When does this start?

The new rules in this bill will start on October 1, 2027, and it includes a deadline for a government report.

Plan to reduce improper payments

Within one year of the bill becoming law, the Secretary of Health and Human Services must give Congress a plan to reduce bad payments over 10 years.