H.R. 2108: TANF State Expenditure Integrity Act of 2025

This bill, titled the TANF State Expenditure Integrity Act of 2025, seeks to strengthen oversight and prevent the misuse of funds provided under the Temporary Assistance for Needy Families (TANF) program. Below are the key provisions of the bill:

Authority to Prevent Misuse of Subrecipient Funds

The bill modifies existing regulations related to the monitoring of TANF funds. Specifically, it allows the Secretary of Health and Human Services to:

• Develop a framework for monitoring how these funds are used by subrecipients to identify any intentional misuse.
• Set requirements for state plans and related reporting to enhance oversight.

Establishment of a Program Integrity Unit

A new unit, called the TANF Program Integrity Unit, will be created within the Administration for Children & Families. This unit will be responsible for monitoring fund usage as established by the new framework. Additionally, the bill includes:

• An appropriation of an additional $10 million each fiscal year specifically for the operations and staffing of this unit.
• The requirement for the Secretary to submit an annual report to Congress detailing the unit’s activities.

Increased Penalties for Misuse

The legislation proposes to enhance penalties for intentional violations regarding the use of TANF funds. Specific measures include:

• If misuse is identified, the Secretary must notify the relevant state and require them to repay the misused amount by providing cash assistance to families living below 100% of the poverty line.

Implementation Timeline

The Secretary of Health and Human Services is tasked with publishing a notice of rulemaking to enact the provisions of this bill within two years of its passage. The new regulations will take effect either on the first day of the fifth calendar quarter after enactment or on the first day of the first federal fiscal year that begins after the enactment, whichever is later.

Summary of Changes

In summary, this bill aims to improve the integrity and accountability of TANF funds by:

• Enhancing monitoring protocols for fund use.
• Establishing dedicated resources to oversee this monitoring.
• Increasing financial penalties for states that do not adhere to proper fund usage guidelines.

Relevant Companies

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