PREVENTING WASTE, FRAUD, AND ABUSE IN TANF ACT

On 2026-06-03, Representative Aaron Bean (R-FL-4) delivered a floor speech titled "PREVENTING WASTE, FRAUD, AND ABUSE IN TANF ACT" in the House.

PREVENTING WASTE, FRAUD, AND ABUSE IN TANF ACT

Congressional Record, Volume 172 Issue 94 (Wednesday, June 3, 2026) [Congressional Record Volume 172, Number 94 (Wednesday, June 3, 2026)] [House] [Pages H3805-H3810] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] PREVENTING WASTE, FRAUD, AND ABUSE IN TANF ACT Mr. SMITH of Missouri. Mr. Speaker, pursuant to House Resolution 1333, I call up the bill (H.R. 8872) to amend part A of title IV of the Social Security Act to target funds to low-income families, strengthen program integrity guardrails for State expenditure of funds, require measurement of improper payments, and establish goals for eliminating fraud and improper payments under the program of block grants to States for temporary assistance for needy families, and for other purposes, and ask for its immediate consideration in the House. The Clerk read the title of the bill. The SPEAKER pro tempore. Pursuant to House Resolution 1333, the amendment in the nature of a substitute recommended by the Committee on Ways and Means, printed in the bill, is adopted and the bill, as amended, is considered read. The text of the bill, as amended, is as follows: H.R. 8872 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Preventing Waste, Fraud, and Abuse in TANF Act''. SEC. 2. STRENGTHENING PROGRAM INTEGRITY THROUGH IMPROPER PAYMENTS REVIEW. (a) In General.--Section 404 of the Social Security Act (42 U.S.C. 604) is amended by adding at the end the following: ``(l) Applicability of Payment Integrity Law.--The Payment Integrity Information Act of 2019 shall apply to a State with respect to the State program funded under this part in the same manner in which such Act applies to a Federal agency.''. (b) Report to Congress.--Within 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Congress a written report that contains a plan to reduce or eliminate improper payments made by States under part A of title IV of the Social Security Act within 10 years. SEC. 3. TARGETING FUNDS TO FAMILIES IN NEED. Section 404 of the Social Security Act (42 U.S.C. 604) is further amended by adding at the end the following: ``(m) Establishing a Threshold for Families in Need.--A State to which a grant is made under section 403(a)(1) shall use the grant only to provide assistance or services to a family whose income is less than twice the poverty guidelines updated periodically in the Federal Register under section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)).''. SEC. 4. DEADLINES FOR THE OBLIGATION AND EXPENDITURE OF FUNDS. Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended to read as follows: [[Page H3806]] ``(e) Deadlines for Obligation and Expenditure of Funds by States.-- ``(1) In general.--Except as provided in paragraph (2), a State to which funds are paid, after the effective date of this subsection, under section 403(a)(1) for a fiscal year shall obligate the funds not later than the end of the succeeding fiscal year, and shall expend the funds not later than the end of the 2nd succeeding fiscal year. ``(2) Exception for limited amount of funds set aside for future use.-- ``(A) In general.--Notwithstanding paragraph (1) of this subsection, a State to which funds are paid under section 403(a)(1), after the effective date of this subsection, for a fiscal year may reserve not more than 15 percent of the funds for future use in the State program funded under this part, subject to subparagraph (B) of this paragraph. ``(B) Limitation.--The total amount held in reserve by a State under subparagraph (A) of this paragraph shall not exceed an amount equal to 50 percent of the total amount paid to the State under section 403(a)(1) for the then preceding fiscal year. ``(C) Notice of intent to reserve funds.--A State that intends to reserve funds under subparagraph (A) shall notify the Secretary of the intention not later than the end of the period in which the funds are available for obligation without regard to subparagraph (A) of this paragraph.''. SEC. 5. PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS TO REPLACE STATE SPENDING. (a) In General.--Section 404 of the Social Security Act (42 U.S.C. 604) is further amended by adding at the end the following: ``(n) Limitation on Use of Federal Funds to Replace State General Revenue Funds.--A State shall use Federal funds received under this part only to supplement funds that, in the absence of the Federal funds, would be made available from State and local sources for programs assisted under this part, and not to supplant the funds.''. (b) State Certification.--Section 402(a) of such Act (42 U.S.C. 602(a)) is amended by adding at the end the following: ``(9) Certification of state supplementation.--A certification by the chief executive officer of the State that the funds provided to the State under this part will not be used to supplant State or non-Federal funds for services and activities that promote the purposes of this part.''. SEC. 6. EFFECTIVE DATE. The amendments made by this Act shall take effect on October 1, 2027. The SPEAKER pro tempore. The bill, as amended, shall be debatable for 1 hour equally divided and controlled by the chair and ranking member of the Committee on Ways and Means or their respective designees. The gentleman from Missouri (Mr. Smith) and the gentleman from Illinois (Mr. Davis) each will control 30 minutes. The Chair recognizes the gentleman from Missouri (Mr. Smith). General Leave Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on this bill under consideration. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Missouri? There was no objection. Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of H.R. 8872, the Preventing Waste, Fraud, and Abuse in TANF Act, introduced by my Ways and Means Committee colleague Representative Mike Carey. With an annual price tag of over $16 billion, the Temporary Assistance for Needy Families program is a sizable investment and plays a critical support role for families who have fallen on hard times. A core tenet of the program is promoting self-sufficiency through work, a goal I know many of us see as a cornerstone of a successful welfare system. Unfortunately, right now, there are major weaknesses in the TANF program that make it ripe for waste, fraud, and abuse. Despite the billions of dollars flowing through TANF, it is one of the few Federal programs we have that is not required to account for improper payments. Additionally, investigations and reporting conducted by the Government Accountability Office found that the 78 percent of TANF spending that goes toward non-assistance activities lacks guardrails to prevent abuse and misuse of these Federal resources. With instances of fraud occurring at an alarming rate across multiple government programs at the Federal, State, and local levels, Congress must act. That is why the Ways and Means Committee has held hearings and conducted critical oversight to determine what solutions will protect taxpayers and the families who should be benefiting from programs like TANF. The Preventing Waste, Fraud, and Abuse in TANF Act is a straightforward piece of legislation that addresses four key areas of concern, reflecting priorities of four members of the Ways and Means Committee. The lead sponsor of this bill, Representative Carey, has fought to keep States from sitting on TANF funds while families struggle. Right now, States are holding on to nearly $8 billion in funds because there are no spending deadlines holding them accountable. This legislation requires that States spend down their TANF funds within a 3-year window. Representative Arrington, the chairman of the House Budget Committee who is a leader in the fight to rein in waste, fraud, and abuse in government, has championed a provision within this bill that finally requires the Federal Government to track and report instances of improper payments. This reporting is crucial to ensuring that policymakers and the American people know if tax dollars are being spent as advertised. With her understanding of how States often repurpose TANF funds to cover unrelated gaps in State budgets, Representative Tenney has worked to ensure States only use Federal TANF resources to supplement, not replace, State and local spending. Thanks to the leadership of Representative Adrian Smith, who has worked to ensure TANF funding is actually going to those truly in need of assistance, this bill includes a provision that establishes an income threshold of 200 percent of the Federal poverty line, which is $62,000 for a family of four, to ensure States are targeting TANF spending to give more to those who are truly in need. These policies defend against the abuse and misuse of taxpayer dollars and improve the integrity of the TANF program to better support those it was created to serve. I am grateful for the leadership of the members of the Ways and Means Committee who have made weeding out waste, fraud, and abuse in our Federal welfare programs a priority. Mr. Speaker, I urge my colleagues to support this bill, and I reserve the balance of my time. Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong opposition to H.R. 8872. Democrats strongly oppose fraud, and that is why Representative Judy Chu and I introduced H.R. 2108, the TANF State Expenditure Integrity Act, which would give the U.S. Department of Health and Human Services specific authority to monitor sub-grantee expenditures, to ensure that they are consistent with TANF's purpose of helping poor children. When

Referenced legislation: HRES1333, HRES1333, HR2108, HR8872