[House Report 119-670]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-670
======================================================================
PREVENTING WASTE, FRAUD, AND ABUSE IN TANF ACT
_______
May 29, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Smith of Missouri, from the Committee on Ways and Means, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 8872]
The Committee on Ways and Means, to whom was referred 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, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...................................... 3
A. Purpose and Summary................................. 3
B. Background and Need for Legislation................. 3
C. Legislative History................................. 5
D. Designated Hearings................................. 5
II. EXPLANATION OF THE BILL..................................... 6
A. Reasons for Change.................................. 6
B. Explanation of Provisions........................... 9
C. Effective Date...................................... 9
III. VOTES OF THE COMMITTEE...................................... 10
IV. BUDGET EFFECTS OF THE BILL.................................. 12
A. Committee Estimate of Budgetary Effects............. 12
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 12
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 12
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.. 13
A. Committee Oversight Findings and Recommendations.... 13
B. Statement of General Performance Goals and
Objectives......................................... 13
C. Information Relating to Unfunded Mandates........... 13
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 13
E. Duplication of Federal Programs..................... 13
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED....... 13
VII. DISSENTING VIEWS............................................ 25
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
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:
``(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.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
H.R. 8872, as amended, the ``Preventing Waste, Fraud and
Abuse in TANF Act,'' as ordered reported by the Committee on
Ways and Means on May 21, 2026, makes changes to part A of
title IV of the Social Security Act to strengthen program
integrity, improve payment oversight, and better target
Temporary Assistance for Needy Families (TANF) funds to
families in need. Introduced by Rep. Mike Carey (R-OH), this
bill applies the Payment Integrity Information Act of 2019 to
state TANF programs and requires the Secretary of Health and
Human Services to submit a report to Congress with a plan to
reduce or eliminate improper payments under TANF within 10
years. This bill establishes a federal income threshold
limiting the use of TANF funds to assistance or services for
families with incomes below 200 percent of the federal poverty
guidelines. This bill also establishes deadlines for states to
obligate and expend TANF funds, while preserving state
flexibility to reserve a limited amount of funds for future
use. This bill further requires federal TANF funds to
supplement, and not supplant, state and local funds for
services and activities that promote the purposes of TANF.
B. Background and Need for Legislation
In 1996, Congress created TANF as part of bipartisan
welfare reform. Today, TANF provides $16.5 billion each year to
states, tribes, and territories to provide assistance to low-
income families and promote self-sufficiency through work. TANF
has not been reauthorized since 2005, but continues to receive
funding through annual appropriations bills and continuing
resolutions. While TANF's flexibility allows states to design
programs that meet the needs of their residents, the Committee
has identified serious gaps in accountability and program
integrity that have emerged over the last two decades.
Specifically, concerns have emerged about how states are
using ``non-assistance'' TANF funds, which constitute nearly 80
percent of total spending. Non-assistance spending is used for
a wide variety of state activities including pre-k, child care,
child welfare, administration, and sometimes for pet projects
unrelated to moving families from welfare to work. The
Committee has found that problems in current law open the door
for diversion of non-assistance funds away from the core
purpose of moving individuals from welfare to work. TANF also
lacks basic financial guardrails creating an environment ripe
for waste, fraud, and abuse. These concerns were exemplified by
headlines from Mississippi where an independent audit of the
state's Department of Human Services found $77 million in
misspent funds from 2017 to 2020, resulting in criminal
convictions for embezzlement by multiple state officials. The
Mississippi case is emblematic of a systemic problem. There is
widespread consensus that rampant state misuse of funds is
undermining efforts to help vulnerable families.
In September 2023, Committee Chairman Jason Smith (R-MO)
and Work and Welfare Subcommittee Chairman Darin LaHood (R-IL),
requested that the Government Accountability Office (GAO)
conduct a comprehensive investigation into state use of TANF
non-assistance funds as part of the Committee's ongoing
oversight work to strengthen the program.\1\ In response to the
request, GAO published five reports and testified about their
fundings at a Work and Welfare Subcommittee hearing.\2\ The
Work and Welfare Subcommittee has also held several hearings to
review the TANF program and examine loopholes in current law
that make the program vulnerable to fraud, and abuse. The GAO
reports are briefly summarized below.
---------------------------------------------------------------------------
\1\Smith, LaHood Call on Government Watchdog to Investigate Uses of
TANF Funds, House Ways and Means Committee Press Release, September 25,
2023.
\2\``Government Watchdog Findings: Temporary Assistance for Needy
Families (TANF) Program In Need of Reform, Better State Accountability,
and Fraud Protection,'' Subcommittee on Work and Welfare, April 8,
2025.
---------------------------------------------------------------------------
``Enhanced Reporting Could Improve HHS
Oversight of State Spending''--GAO found states are not
reporting complete information about TANF expenditures,
and most states lacked transparent reporting on
subgrantees. In addition, states carried over
significant balances of unspent TANF funds, more than
doubling from $4 billion in FY 2015 to $9 billion in FY
2022. (GAO-25-107235)
``Additional Actions Needed to Strengthen
Fraud Risk Management''--GAO identified 21 fraud risks
in nine categories including billing fraud, misuse of
award funds, and diversion. (GAO-24-107290)
``HHS Could Facilitate Information Sharing
to Improve States' Use of Data on Job Training and
Other Services''--GAO found states lacked data on
demographic characteristics, participation, and
outcomes for individuals and families served by non-
assistance TANF funds. (GAO-25-107226)
``HHS Needs to Strengthen Oversight of
Single Audit Findings''--GAO reviewed independent state
audit findings and identified 36 states with,
collectively 155 TANF findings, of which 99 were repeat
findings and went unaddressed in multiple years. (GAO-
25-107291)
``Child Welfare: States' Use of TANF and
Other Major Federal Funding Sources''--States spend a
significant amount of TANF non-assistance funds on
child welfare services ($3.3 billion in federal and
state funds in FY 2022 or 10% of total spending),
however there is a lack of data on children served,
services provided, and impact on child well-being.
(GAO-245-107467)
In the 118th and 119th Congress, Republican Committee
Members introduced a set of seven TANF bills focused on
targeting TANF to families in need, helping low-income families
find and keep a job, and reducing waste, fraud, and abuse.
Those bills are combined into a larger, comprehensive five-year
TANF reauthorization led by Rep. Darin LaHood (R-IL) and
Senator Steve Daines (R-MT), the Jobs and Opportunity with
Benefits and Services (JOBS) for Success Act of 2025 (H.R.
3156/S. 1567).
H.R. 8872, the ``Preventing Waste, Fraud and Abuse in TANF
Act,'' combines four of the Committee's TANF bills focused on
program integrity. Combined, these policies will put into place
basic financial guardrails which apply to most other federal
programs, to reign in state misuse of funds and reduce fraud
and improper payments. One of the major benefits of TANF is the
flexibility provided to states to deliver assistance to their
citizens need. However, this must be balanced with protecting
taxpayer dollars. The bill is intended to preserve state
flexibility with common sense federal requirements.
C. Legislative History
Background
H.R. 8872 was introduced on May 19, 2026, and was referred
to the Committee on Ways and Means. H.R. 8872 combines four
Committee bills (listed below) which were introduced in the
118th and 119th Congress:
H.R. 2242, ``Eliminate Fraud and Improper
Payments in TANF Act''
H.R. 2397, ``Target TANF to Families in Need
Act''
H.R. 2359, ``Improve Transparency and
Stability for Families Act''
H.R. 2584, ``Protect TANF Resources for
Families Act''
Committee Hearings
The Committee on Ways and Means held the following
hearing(s) concerning the policy in H.R. 8872:
On April 8, 2025, the House Ways and Means Subcommittee on
Work and Welfare held a hearing on ``Government Watchdog
Findings: Temporary Assistance for Needy Families (TANF)
Program In Need of Reform, Better State Accountability, and
Fraud Protection.''
Committee Action
The Committee on Ways and Means marked up H.R. 8872, the
``Preventing Waste, Fraud and Abuse in TANF Act'', on May 21,
2026, and favorably reported the bill, as amended, to the House
of Representatives (with quorum being present).
D. Designated Hearings
Pursuant to clause 3(c)(6) of rule XIII, the following
hearings were used to develop and consider H.R. 8872, the
``Preventing Waste, Fraud and Abuse in TANF Act'':
``Where is all the Welfare Money Going? Reclaiming TANF
Non-Assistance Dollars to Lift Americans Out of Poverty,''
hearing held on July 12, 2023, ``States' Misuse of Welfare
Funds Leaves Poor Families Behind,'' hearing held on September
26, 2024, and ``Temporary Assistance for Needy Families (TANF)
Program In Need of Reform, Better State Accountability, and
Fraud Protection,'' hearing held on April 8, 2025.
II. EXPLANATION OF THE BILL
A. Reasons for Change
Section 1. The Committee believes the title accurately
reflects the content of the bill.
Section 2. TANF is one of the few federal programs not
required to report an annual federal improper payment rate
under the Program Integrity Information Act of 2019 (PIIA)(P.L.
116-117). PIIA generally requires federal agencies to identify
programs at risk of significant improper payments and report on
their corrective actions. During a Subcommittee hearing in
2025, one witness testified that the lack of federal
requirements to measure improper payments contributed to a
``nobody's watching'' atmosphere that makes TANF vulnerable to
fraud and misuse. Improper payment reviews include identifying
fraud in federal programs as well as administrative errors such
as payments made in the wrong amount, payments to an ineligible
recipient, and duplicate payments.
Since 2022, GAO has recommended Congress grant the
Department of Health and Human Services (HHS) authority to
require states to report data necessary to estimate TANF
improper payments. The Office of Management and Budget
identified TANF as a risk-susceptible program, however HHS has
not reported an improper payment estimate for TANF. HHS stated
in its FY 2021 Agency Financial Review that it did not report
an improper payment estimate because statutory limitations
prohibit collection of the necessary data. Since 2020, the
Administration for Children and Families (ACF) requested the
authority to measure improper payments for TANF in its
congressional justifications to the President's Budget for
fiscal years 2020, 2021, 2024, and 2025, spanning President
Trump's first term and President Biden's term. Specifically,
ACF requested congressional authorization to collect
information from states to develop an improper payment rate for
TANF.
Without measuring improper payments, Congress and HHS have
limited ability to determine whether TANF dollars are being
paid accurately, whether errors are caused by fraud or
administrative mistakes, and what corrective actions are needed
to improve program integrity. The Committee believes applying
PIIA to state TANF programs will strengthen oversight of
improper payments and help identify waste, fraud, and abuse in
the program. The Committee believes requiring the Secretary of
HHS to submit a plan to reduce or eliminate improper payments
within 10 years will improve accountability and provide
Congress with a clearer path for addressing improper payments
in TANF.
Section 3. Federal law establishes the framework for
spending under TANF; however, states have broad flexibility to
set their own income and asset eligibility limits. Current law
does not target TANF to families in poverty or establish a
federal income eligibility limit for the program. All other
major federal welfare programs, such as Medicaid and
Supplemental Nutrition Assistance (SNAP), establish eligibility
limits to target resources to families based on income.
Instead, states establish eligibility for TANF cash assistance
with maximum earnings thresholds for individuals to qualify.
Eligibility varies across the country, but in nearly all states
eligibility for cash assistance is at or below 100% of the
federal poverty line.
However, TANF non-assistance spending, which constitutes
nearly 80% of state spending, is not subject to the same state
income eligibility limits as cash assistance. Federal TANF non-
assistance funds used on benefits, services, and activities
that meet one of the four purposes of TANF do not have
requirements related to eligibility, nor are states are
required to report caseload counts or demographic data for
children and families receiving non-assistance TANF. This has
led to TANF being used to support programs and projects that
are not targeted to needy families. Examples include:
Detroit Free Press: How Michigan Families get Welfare
for Private Colleges--Michigan spends about $100
million annually in welfare money on college aid,
including millions that benefit families earning more
than $100,000.
Governing Magazine: How Are States Using Welfare
Funding? Often, Not to Help People Work.--Flexibility
in the program has led ``states to shift money over to
programs that have, at best, a tenuous relationship to
work.'' Arizona, for example, spent almost half of its
TANF funds last year on child welfare.
Michigan Live: ``State offers additional $1.2 million
for water heater replacements in Flint''--The Michigan
Department of Health and Human Services announced
additional funding for the third-year program, which is
restricted to homes with at least one child living at
the address or one resident who is at least 60 years
old. MDHHS said in a news release that the funding to
continue the program comes from the federal TANF
program and state general funds.
Louisiana Budget Project: ``Fund diversions erode
Louisiana's safety net''--Welfare dollars made
available through the TANF block grant have been used
to plug holes in the state budget.
NC Policy Watch: ``Read fine print: How the state
Senate spends federal the dollars in its budget''--
North Carolina recently began to swap out a portion of
state funding for federal aid. Supplanting--rather than
supplementing--state dollars is troubling when waiting
lists and unmet needs persist.''
Maine, Bangor Daily News: ``What LePage really plans
to do with $100M meant for Maine families in
poverty''--A BDN Maine Focus review of the department's
spending plans, interviews with nonprofit service
providers in line to receive funds, and an examination
of state documents show that DHHS is largely using TANF
to cover long-term state spending obligations.
In 2023, the Biden Administration proposed a rule with a
similar policy to limit TANF to families under 200% of poverty
related to the first two purposes of TANF.\3\ In their
justification, the proposed rule expressed concern that TANF
non-assistance funds were increasingly being used for families
with income significantly above the poverty line. The rule
identified that ``41 states were spending TANF on services to
families at 300 and 400% of the poverty line.''
---------------------------------------------------------------------------
\3\``Strengthening Temporary Assistance for Needy Families (TANF)
as a Safety Net and Work Program,'' Proposed Rule, Administration for
Children and Families, HHS. Federal Register 88 FR 67697, October 2,
2023.
---------------------------------------------------------------------------
The Committee believes establishing a federal income
threshold will ensure TANF funds are targeted to low-income
families and prevent diversion of funds. This federal limit
applies to both assistance and non-assistance spending and
continues to provide states flexibility to tailor income
guidelines and further target federal resources as the state
deems appropriate for services and supports funded with TANF
dollars.
Section 4. Unlike other grant programs, there are no
requirements to spend TANF funds within a certain time period,
therefore states may reserve unused TANF dollars without fiscal
year limit. This makes it difficult to track state spending
from an audit and accounting perspective and contributes to
large amounts of unspent funds. In 2024, 39 states held roughly
$8 billion in unspent TANF funds nationwide. For example, New
York carried over more than $1.7 billion, Pennsylvania carried
$1.3 billion, while Tennessee, a state with one of the highest
child poverty rates in the country, carried $675 million in
unspent TANF funds.
According to a January 2025 report from GAO, unspent TANF
funds have more than doubled since 2015. Unspent TANF funds
means critical dollars are not reaching needy families and
makes it easier for states to divert ``leftover'' TANF to fill
state budget gaps.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The Committee believes establishing deadlines for the
obligation and expenditure of TANF funds will encourage states
to put federal welfare dollars to timely use for families in
need. The Committee believes allowing states to reserve a
limited amount of funds for future use will preserve
appropriate state flexibility while preventing excessive
accumulation of unused TANF funds.
Section 5. As a block grant, TANF provides states
flexibility to design programs and direct spending. Under
current law, there is no prohibition preventing states from
using federal TANF funds to replace state or local funds for
TANF-related social services. As a result, states are able to
divert federal TANF dollars to fill budget gaps or supplant
existing state spending, reducing the amount of funding
available to help families in poverty. A January 2025 GAO
report, found that a lack of safeguards in TANF contributes to
``opaque accounting practices''' that allows states to use TANF
as a slush fund and plug budget shortfalls.
Nearly all federal grant programs include standard ``non-
supplantation'' language. This ensures that states maintain
their effort to fund services at the state and local level and
that federal dollars supplement those efforts. TANF is the
exception. The Committee believes requiring TANF funds to
supplement, and not supplant, state and local funds will help
ensure federal TANF dollars add to, rather than replace,
support for TANF-related services and activities in states. The
Committee believes requiring state certification of compliance
in their TANF plan will strengthen accountability for state use
of federal TANF funds.
Section 6. The Committee believes the effective date
provides states and HHS with time to implement the bill's
requirements.
B. Explanation of Provisions
Section 1. Provides the short title of the bill,
``Preventing Waste, Fraud and Abuse in TANF Act.''
Section 2. Applies the requirements of the Payment
Integrity Information Act of 2019 to state TANF programs in the
same manner such Act applies to federal agencies. Requires the
Secretary of HHS to submit a report to Congress within one year
of enactment containing a plan to reduce or eliminate improper
payments made by states under TANF within 10 years.
Section 3. Establishes a federal income threshold to ensure
TANF funds are used only to provide support and services to
families in need. Restricts TANF eligibility to families with
incomes below 200% of the federal poverty level. In 2025, this
was equivalent to income below $51,640 for a family of three.
This preserves state flexibility, but provides an outer
boundary to ensure federal funds are targeted to families at or
near the poverty line. Applies the income threshold to both
assistance and non-assistance services funded through the
federal TANF block grant.
Section 4. Requires states to obligate TANF funds not later
than the end of the succeeding fiscal year and expend such
funds not later than the end of the second succeeding fiscal
year. It permits a state to reserve not more than 15% of TANF
funds paid to the state for a fiscal year for future use in the
state TANF program, and limits the total amount held in reserve
by a state to not more than 50% of the total amount paid to the
state under TANF for the preceding fiscal year.
Section 5. Requires federal TANF funds to supplement, not
supplant, state and local spending. This prohibits states from
using federal TANF funds to replace state or local funds that
otherwise would be available for similar services. Requires the
chief executive officer of each state to certify that federal
TANF funds will not be used to supplant state or non-federal
funds for services and activities that promote TANF purposes as
part of the state's TANF plan.
Section 6. Provides an effective date of October 1, 2027.
C. Effective Date
The bill would become effective on October 1, 2027.
III. VOTES OF THE COMMITTEE
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 8872, the ``Preventing Waste, Fraud, and
Abuse in TANF Act,'' on May 21, 2026.
The vote on the amendment offered by Mr. Davis to the
amendment in the nature of a substitute to H.R. 8872, which
would require the Department of Health and Human Services to
answer Congressional questions about the Trump Administration's
revenge freeze of TANF funding in five states before
implementing the bill was not agreed to by a roll call vote of
18 yeas to 23 nays (with a quorum being present).
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ ........ X ......... Mr. Neal........ X ......... .........
Mr. Buchanan.................. ........ ......... ......... Mr. Doggett..... X ......... .........
Mr. Smith (NE)................ ........ X ......... Mr. Thompson.... X ......... .........
Mr. Kelly..................... ........ X ......... Mr. Larson...... X ......... .........
Mr. Schweikert................ ........ X ......... Mr. Davis....... X ......... .........
Mr. LaHood.................... ........ X ......... Ms. Sanchez..... X ......... .........
Mr. Arrington................. ........ X ......... Ms. Sewell...... X ......... .........
Mr. Estes..................... ........ X ......... Ms. DelBene..... X ......... .........
Mr. Smucker................... ........ X ......... Ms. Chu......... X ......... .........
Mr. Hern...................... ........ X ......... Ms. Moore (WI).. X ......... .........
Mrs. Miller (WV).............. ........ ......... ......... Mr. Boyle....... ........ ......... .........
Dr. Murphy.................... ........ X ......... Mr. Beyer....... X ......... .........
Mr. Kustoff................... ........ X ......... Mr. Evans....... X ......... .........
Mr. Fitzpatrick............... ........ X ......... Mr. Schneider... X ......... .........
Mr. Steube.................... ........ X ......... Mr. Panetta..... X ......... .........
Ms. Tenney.................... ........ X ......... Mr. Gomez....... X ......... .........
Mrs. Fischbach................ ........ X ......... Mr. Horsford.... X ......... .........
Mr. Moore (UT)................ ........ X ......... Ms. Plaskett.... X ......... .........
Ms. Van Duyne................. ........ X ......... Mr. Suozzi...... X ......... .........
Mr. Feenstra.................. ........ X .........
Ms. Malliotakis............... ........ X .........
Mr. Carey..................... ........ X .........
Mr. Yakym..................... ........ X .........
Mr. Miller (OH)............... ........ X .........
Mr. Bean...................... ........ X .........
Mr. Moran..................... ........ ......... .........
----------------------------------------------------------------------------------------------------------------
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 8872, the ``Preventing Waste, Fraud, and
Abuse in TANF Act,'' on May 21, 2026.
The vote on the amendment offered by Ms. DelBene to the
amendment in the nature of a substitute to H.R. 8872, which
would prohibit a pregnancy center from receiving TANF funds if
a State Medical Board finds they have provided misleading or
deceptive medical information or services or endangered the
health of women was not agreed to by a roll call vote of 19
yeas to 23 nays (with a quorum being present).
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ ........ X ......... Mr. Neal........ X ......... .........
Mr. Buchanan.................. ........ ......... ......... Mr. Doggett..... X ......... .........
Mr. Smith (NE)................ ........ X ......... Mr. Thompson.... X ......... .........
Mr. Kelly..................... ........ X ......... Mr. Larson...... X ......... .........
Mr. Schweikert................ ........ X ......... Mr. Davis....... X ......... .........
Mr. LaHood.................... ........ X ......... Ms. Sanchez..... X ......... .........
Mr. Arrington................. ........ X ......... Ms. Sewell...... X ......... .........
Mr. Estes..................... ........ X ......... Ms. DelBene..... X ......... .........
Mr. Smucker................... ........ X ......... Ms. Chu......... X ......... .........
Mr. Hern...................... ........ X ......... Ms. Moore (WI).. X ......... .........
Mrs. Miller (WV).............. ........ ......... ......... Mr. Boyle....... X ......... .........
Dr. Murphy.................... ........ X ......... Mr. Beyer....... X ......... .........
Mr. Kustoff................... ........ X ......... Mr. Evans....... X ......... .........
Mr. Fitzpatrick............... ........ X ......... Mr. Schneider... X ......... .........
Mr. Steube.................... ........ X ......... Mr. Panetta..... X ......... .........
Ms. Tenney.................... ........ X ......... Mr. Gomez....... X ......... .........
Mrs. Fischbach................ ........ X ......... Mr. Horsford.... X ......... .........
Mr. Moore (UT)................ ........ X ......... Ms. Plaskett.... X ......... .........
Ms. Van Duyne................. ........ X ......... Mr. Suozzi...... X ......... .........
Mr. Feenstra.................. ........ X .........
Ms. Malliotakis............... ........ X .........
Mr. Carey..................... ........ X .........
Mr. Yakym..................... ........ X .........
Mr. Miller (OH)............... ........ X .........
Mr. Bean...................... ........ X .........
Mr. Moran..................... ........ ......... .........
----------------------------------------------------------------------------------------------------------------
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 8872, the ``Preventing Waste, Fraud, and
Abuse in TANF Act,'' on May 21, 2026.
The vote on Mr. Smith (NE)'s motion to table Ms. Chu's
appeal of the ruling of the chair was agreed to by a roll call
vote of 23 yeas to 18 nays (with a quorum being present). The
vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ X ......... ......... Mr. Neal........ ........ X .........
Mr. Buchanan.................. ........ ......... ......... Mr. Doggett..... ........ X .........
Mr. Smith (NE)................ X ......... ......... Mr. Thompson.... ........ X .........
Mr. Kelly..................... X ......... ......... Mr. Larson...... ........ X .........
Mr. Schweikert................ X ......... ......... Mr. Davis....... ........ X .........
Mr. LaHood.................... X ......... ......... Ms. Sanchez..... ........ X .........
Mr. Arrington................. X ......... ......... Ms. Sewell...... ........ X .........
Mr. Estes..................... X ......... ......... Ms. DelBene..... ........ X .........
Mr. Smucker................... X ......... ......... Ms. Chu......... ........ X .........
Mr. Hern...................... X ......... ......... Ms. Moore (WI).. ........ X .........
Mrs. Miller (WV).............. ........ ......... ......... Mr. Boyle....... ........ X .........
Dr. Murphy.................... X ......... ......... Mr. Beyer....... ........ ......... .........
Mr. Kustoff................... X ......... ......... Mr. Evans....... ........ X .........
Mr. Fitzpatrick............... X ......... ......... Mr. Schneider... ........ X .........
Mr. Steube.................... X ......... ......... Mr. Panetta..... ........ X .........
Ms. Tenney.................... X ......... ......... Mr. Gomez....... ........ X .........
Mrs. Fischbach................ X ......... ......... Mr. Horsford.... ........ X .........
Mr. Moore (UT)................ X ......... ......... Ms. Plaskett.... ........ X .........
Ms. Van Duyne................. X ......... ......... Mr. Suozzi...... ........ X .........
Mr. Feenstra.................. X ......... .........
Ms. Malliotakis............... X ......... .........
Mr. Carey..................... X ......... .........
Mr. Yakym..................... X ......... .........
Mr. Miller (OH)............... X ......... .........
Mr. Bean...................... X ......... .........
Mr. Moran..................... ........ ......... .........
----------------------------------------------------------------------------------------------------------------
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 8872, the ``Preventing Waste, Fraud, and
Abuse in TANF Act,'' on May 21, 2026.
H.R. 8872 was ordered favorably reported to the House of
Representatives as amended by a roll call vote of 23 yeas to 19
nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO)................ X ......... ......... Mr. Neal........ ........ X .........
Mr. Buchanan.................. ........ ......... ......... Mr. Doggett..... ........ X .........
Mr. Smith (NE)................ X ......... ......... Mr. Thompson.... ........ X .........
Mr. Kelly..................... X ......... ......... Mr. Larson...... ........ X .........
Mr. Schweikert................ X ......... ......... Mr. Davis....... ........ X .........
Mr. LaHood.................... X ......... ......... Ms. Sanchez..... ........ X .........
Mr. Arrington................. X ......... ......... Ms. Sewell...... ........ X .........
Mr. Estes..................... X ......... ......... Ms. DelBene..... ........ X .........
Mr. Smucker................... X ......... ......... Ms. Chu......... ........ X .........
Mr. Hern...................... X ......... ......... Ms. Moore (WI).. ........ X .........
Mrs. Miller (WV).............. ........ ......... ......... Mr. Boyle....... ........ X .........
Dr. Murphy.................... X ......... ......... Mr. Beyer....... ........ X .........
Mr. Kustoff................... X ......... ......... Mr. Evans....... ........ X .........
Mr. Fitzpatrick............... X ......... ......... Mr. Schneider... ........ X .........
Mr. Steube.................... X ......... ......... Mr. Panetta..... ........ X .........
Ms. Tenney.................... X ......... ......... Mr. Gomez....... ........ X .........
Mrs. Fischbach................ X ......... ......... Mr. Horsford.... ........ X .........
Mr. Moore (UT)................ X ......... ......... Ms. Plaskett.... ........ X .........
Ms. Van Duyne................. X ......... ......... Mr. Suozzi...... ........ X .........
Mr. Feenstra.................. X ......... .........
Ms. Malliotakis............... X ......... .........
Mr. Carey..................... X ......... .........
Mr. Yakym..................... X ......... .........
Mr. Miller (OH)............... X ......... .........
Mr. Bean...................... X ......... .........
Mr. Moran..................... ........ ......... .........
----------------------------------------------------------------------------------------------------------------
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
With respect to clause 3(d) of rule XIII of the Rules of
the House of Representatives, a cost estimate provided by the
Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not made available to the
Committee in time for the filing of this report.
B. Statement Regarding New Budget Authority and Tax Expenditures Budget
Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involved no new or increased budget authority. The
Committee states further that the bill involves no new or
increased tax expenditures.
C. Cost Estimate Prepared by the Congressional Budget Office
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of Rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has requested
but not received a cost estimate for this bill from the
Director of Congressional Budget Office. The Chairman of the
Committee shall cause such estimate and statement to be printed
in the Congressional Record upon its receipt by the Committee.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee made findings and
recommendations that are reflected in this report.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
bill does not authorize funding, so no statement of general
performance goals and objectives is required.
C. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
E. Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
SOCIAL SECURITY ACT
* * * * * * *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH
CHILDREN AND FOR CHILD-WELFARE SERVICES
PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
* * * * * * *
SEC. 402. ELIGIBLE STATES; STATE PLAN.
(a) In General.--As used in this part, the term ``eligible
State'' means, with respect to a fiscal year, a State that,
during the 27-month period ending with the close of the 1st
quarter of the fiscal year, has submitted to the Secretary a
plan that the Secretary has found includes the following:
(1) Outline of family assistance program.--
(A) General provisions.--A written document
that outlines how the State intends to do the
following:
(i) Conduct a program, designed to
serve all political subdivisions in the
State (not necessarily in a uniform
manner), that provides assistance to
needy families with (or expecting)
children and provides parents with job
preparation, work, and support services
to enable them to leave the program and
become self-sufficient.
(ii) Require a parent or caretaker
receiving assistance under the program
to engage in work (as defined by the
State) once the State determines the
parent or caretaker is ready to engage
in work, or once the parent or
caretaker has received assistance under
the program for 24 months (whether or
not consecutive), whichever is earlier,
consistent with section 407(e)(2).
(iii) Ensure that parents and
caretakers receiving assistance under
the program engage in work activities
in accordance with section 407.
(iv) Take such reasonable steps as
the State deems necessary to restrict
the use and disclosure of information
about individuals and families
receiving assistance under the program
attributable to funds provided by the
Federal Government.
(v) Establish goals and take action
to prevent and reduce the incidence of
out-of-wedlock pregnancies, with
special emphasis on teenage
pregnancies, and establish numerical
goals for reducing the illegitimacy
ratio of the State (as defined in
section 403(a)(2)(C)(iii)) for calendar
years 1996 through 2005.
(vi) Conduct a program, designed to
reach State and local law enforcement
officials, the education system, and
relevant counseling services, that
provides education and training on the
problem of statutory rape so that
teenage pregnancy prevention programs
may be expanded in scope to include
men.
(vii) Implement policies and
procedures as necessary to prevent
access to assistance provided under the
State program funded under this part
through any electronic fund transaction
in an automated teller machine or
point-of-sale device located in a place
described in section 408(a)(12),
including a plan to ensure that
recipients of the assistance have
adequate access to their cash
assistance.
(viii) Ensure that recipients of
assistance provided under the State
program funded under this part have
access to using or withdrawing
assistance with minimal fees or
charges, including an opportunity to
access assistance with no fee or
charges, and are provided information
on applicable fees and surcharges that
apply to electronic fund transactions
involving the assistance, and that such
information is made publicly available.
(B) Special provisions.--
(i) The document shall indicate
whether the State intends to treat
families moving into the State from
another State differently than other
families under the program, and if so,
how the State intends to treat such
families under the program.
(ii) The document shall indicate
whether the State intends to provide
assistance under the program to
individuals who are not citizens of the
United States, and if so, shall include
an overview of such assistance.
(iii) The document shall set forth
objective criteria for the delivery of
benefits and the determination of
eligibility and for fair and equitable
treatment, including an explanation of
how the State will provide
opportunities for recipients who have
been adversely affected to be heard in
a State administrative or appeal
process.
(iv) Not later than 1 year after the
date of enactment of this section,
unless the chief executive officer of
the State opts out of this provision by
notifying the Secretary, a State shall,
consistent with the exception provided
in section 407(e)(2), require a parent
or caretaker receiving assistance under
the program who, after receiving such
assistance for 2 months is not exempt
from work requirements and is not
engaged in work, as determined under
section 407(c), to participate in
community service employment, with
minimum hours per week and tasks to be
determined by the State.
(v) The document shall indicate
whether the State intends to assist
individuals to train for, seek, and
maintain employment--
(I) providing direct care in
a long-term care facility (as
such terms are defined under
section 2011); or
(II) in other occupations
related to elder care
determined appropriate by the
State for which the State
identifies an unmet need for
service personnel,
and, if so, shall include an overview
of such assistance.
(2) Certification that the state will operate a child
support enforcement program.--A certification by the
chief executive officer of the State that, during the
fiscal year, the State will operate a child support
enforcement program under the State plan approved under
part D.
(3) Certification that the state will operate a
foster care and adoption assistance program.--A
certification by the chief executive officer of the
State that, during the fiscal year, the State will
operate a foster care and adoption assistance program
under the State plan approved under part E, and that
the State will take such actions as are necessary to
ensure that children receiving assistance under such
part are eligible for medical assistance under the
State plan under title XIX.
(4) Certification of the administration of the
program.--A certification by the chief executive
officer of the State specifying which State agency or
agencies will administer and supervise the program
referred to in paragraph (1) for the fiscal year, which
shall include assurances that local governments and
private sector organizations--
(A) have been consulted regarding the plan
and design of welfare services in the State so
that services are provided in a manner
appropriate to local populations; and
(B) have had at least 45 days to submit
comments on the plan and the design of such
services.
(5) Certification that the state will provide indians
with equitable access to assistance.--A certification
by the chief executive officer of the State that,
during the fiscal year, the State will provide each
member of an Indian tribe, who is domiciled in the
State and is not eligible for assistance under a tribal
family assistance plan approved under section 412, with
equitable access to assistance under the State program
funded under this part attributable to funds provided
by the Federal Government.
(6) Certification of standards and procedures to
ensure against program fraud and abuse.--A
certification by the chief executive officer of the
State that the State has established and is enforcing
standards and procedures to ensure against program
fraud and abuse, including standards and procedures
concerning nepotism, conflicts of interest among
individuals responsible for the administration and
supervision of the State program, kickbacks, and the
use of political patronage.
(7) Optional certification of standards and
procedures to ensure that the state will screen for and
identify domestic violence.--
(A) In general.--At the option of the State,
a certification by the chief executive officer
of the State that the State has established and
is enforcing standards and procedures to--
(i) screen and identify individuals
receiving assistance under this part
with a history of domestic violence
while maintaining the confidentiality
of such individuals;
(ii) refer such individuals to
counseling and supportive services; and
(iii) waive, pursuant to a
determination of good cause, other
program requirements such as time
limits (for so long as necessary) for
individuals receiving assistance,
residency requirements, child support
cooperation requirements, and family
cap provisions, in cases where
compliance with such requirements would
make it more difficult for individuals
receiving assistance under this part to
escape domestic violence or unfairly
penalize such individuals who are or
have been victimized by such violence,
or individuals who are at risk of
further domestic violence.
(B) Domestic violence defined.--For purposes
of this paragraph, the term ``domestic
violence'' has the same meaning as the term
``battered or subjected to extreme cruelty'',
as defined in section 408(a)(7)(C)(iii).
(8) Certification that the state will provide
information to victims of sexual harassment or
survivors of domestic violence, sexual assault, or
stalking.--
(A) In general.--A certification by the chief
executive officer of the State that the State
has established and is enforcing standards and
procedures to--
(i) ensure that applicants and
potential applicants for assistance
under the State program funded under
this part are notified of assistance
made available by the State to victims
of sexual harassment and survivors of
domestic violence, sexual assault, or
stalking;
(ii) ensure that case workers and
other agency personnel responsible for
administering the State program funded
under this part are trained in--
(I) the nature and dynamics
of sexual harassment and
domestic violence, sexual
assault, and stalking;
(II) State standards and
procedures relating to the
prevention of, and assistance
for, individuals who are
victims of sexual harassment or
survivors of domestic violence,
sexual assault, or stalking;
and
(III) methods of ascertaining
and ensuring the
confidentiality of personal
information and documentation
related to applicants for
assistance and their children
who have provided notice about
their experiences of sexual
harassment, domestic violence,
sexual assault, or stalking;
and
(iii) ensure that, if a State has
elected to establish and enforce
standards and procedures regarding the
screening for, and identification of,
domestic violence, sexual assault, or
stalking pursuant to paragraph (7)--
(I) the State program funded
under this part provides
information about the options
under this part to current and
potential beneficiaries; and
(II) case workers and other
agency personnel responsible
for administering the State
program funded under this part
are provided with training
regarding State standards and
procedures pursuant to
paragraph (7).
(B) Definitions.--For purposes of this
paragraph--
(i) the term ``sexual harassment''
means hostile, intimidating, or
oppressive behavior based on sex that
creates an offensive work environment;
(ii) the term ``domestic violence''
has the meaning given such term in
paragraph (7); and
(iii) the terms ``sexual assault''
and ``stalking'' have the meanings
given such terms in section 40002 of
the Violence Against Women Act of 1994
(34 U.S.C. 12291).
(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.
(b) Plan Amendments.--Within 30 days after a State amends a
plan submitted pursuant to subsection (a), the State shall
notify the Secretary of the amendment.
(c) Public Availability of State Plan Summary.--The State
shall make available to the public a summary of any plan or
plan amendment submitted by the State under this section.
* * * * * * *
SEC. 404. USE OF GRANTS.
(a) General Rules.--Subject to this part, a State to which a
grant is made under section 403 may use the grant--
(1) in any manner that is reasonably calculated to
accomplish the purpose of this part, including to
provide low income households with assistance in
meeting home heating and cooling costs; or
(2) in any manner that the State was authorized to
use amounts received under part A or F, as such parts
were in effect on September 30, 1995, or (at the option
of the State) August 21, 1996.
(b) Limitation on Use of Grant for Administrative Purposes.--
(1) Limitation.--A State to which a grant is made
under section 403 shall not expend more than 15 percent
of the grant for administrative purposes.
(2) Exception.--Paragraph (1) shall not apply to the
use of a grant for information technology and
computerization needed for tracking or monitoring
required by or under this part.
(c) Authority To Treat Interstate Immigrants Under Rules of
Former State.--A State operating a program funded under this
part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another State
if the family has moved to the State from the other State and
has resided in the State for less than 12 months.
(d) Authority To Use Portion of Grant for Other Purposes.--
(1) In general.--Subject to paragraph (2), a State
may use not more than 30 percent of the amount of any
grant made to the State under section 403(a) for a
fiscal year to carry out a State program pursuant to
any or all of the following provisions of law:
(A) Subtitle A of title XX of this Act.
(B) The Child Care and Development Block
Grant Act of 1990.
(2) Limitation on amount transferable to subtitle 1
of title xx programs.--
(A) In general.--A State may use not more
than the applicable percent of the amount of
any grant made to the State under section
403(a) for a fiscal year to carry out State
programs pursuant to subtitle 1 of title XX.
(B) Applicable percent.--For purposes of
subparagraph (A), the applicable percent is
4.25 percent in the case of fiscal year 2001
and each succeeding fiscal year.
(3) Applicable rules.--
(A) In general.--Except as provided in
subparagraph (B) of this paragraph, any amount
paid to a State under this part that is used to
carry out a State program pursuant to a
provision of law specified in paragraph (1)
shall not be subject to the requirements of
this part, but shall be subject to the
requirements that apply to Federal funds
provided directly under the provision of law to
carry out the program, and the expenditure of
any amount so used shall not be considered to
be an expenditure under this part.
(B) Exception relating to subtitle 1 of title
xx programs.--All amounts paid to a State under
this part that are used to carry out State
programs pursuant to subtitle 1 of title XX
shall be used only for programs and services to
children or their families whose income is less
than 200 percent of the income official poverty
line (as defined by the Office of Management
and Budget, and revised annually in accordance
with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to a
family of the size involved.
[(e) Authority to Carry Over Certain Amounts for Benefits or
Services or for Future Contingencies.--A State or tribe may use
a grant made to the State or tribe under this part for any
fiscal year to provide, without fiscal year limitation, any
benefit or service that may be provided under the State or
tribal program funded under this part.]
(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.
(f) Authority to Operate Employment Placement Program.--A
State to which a grant is made under section 403 may use the
grant to make payments (or provide job placement vouchers) to
State-approved public and private job placement agencies that
provide employment placement services to individuals who
receive assistance under the State program funded under this
part.
(g) Implementation of Electronic Benefit Transfer System.--A
State to which a grant is made under section 403 is encouraged
to implement an electronic benefit transfer system for
providing assistance under the State program funded under this
part, and may use the grant for such purpose.
(h) Use of Funds for Individual Development Accounts.--
(1) In general.--A State to which a grant is made
under section 403 may use the grant to carry out a
program to fund individual development accounts (as
defined in paragraph (2)) established by individuals
eligible for assistance under the State program funded
under this part.
(2) Individual development accounts.--
(A) Establishment.--Under a State program
carried out under paragraph (1), an individual
development account may be established by or on
behalf of an individual eligible for assistance
under the State program operated under this
part for the purpose of enabling the individual
to accumulate funds for a qualified purpose
described in subparagraph (B).
(B) Qualified purpose.--A qualified purpose
described in this subparagraph is 1 or more of
the following, as provided by the qualified
entity providing assistance to the individual
under this subsection:
(i) Postsecondary educational
expenses.--Postsecondary educational
expenses paid from an individual
development account directly to an
eligible educational institution.
(ii) First home purchase.--Qualified
acquisition costs with respect to a
qualified principal residence for a
qualified first-time homebuyer, if paid
from an individual development account
directly to the persons to whom the
amounts are due.
(iii) Business capitalization.--
Amounts paid from an individual
development account directly to a
business capitalization account which
is established in a federally insured
financial institution and is restricted
to use solely for qualified business
capitalization expenses.
(C) Contributions to be from earned income.--
An individual may only contribute to an
individual development account such amounts as
are derived from earned income, as defined in
section 911(d)(2) of the Internal Revenue Code
of 1986.
(D) Withdrawal of funds.--The Secretary shall
establish such regulations as may be necessary
to ensure that funds held in an individual
development account are not withdrawn except
for 1 or more of the qualified purposes
described in subparagraph (B).
(3) Requirements.--
(A) In general.--An individual development
account established under this subsection shall
be a trust created or organized in the United
States and funded through periodic
contributions by the establishing individual
and matched by or through a qualified entity
for a qualified purpose (as described in
paragraph (2)(B)).
(B) Qualified entity.--As used in this
subsection, the term ``qualified entity''
means--
(i) a not-for-profit organization
described in section 501(c)(3) of the
Internal Revenue Code of 1986 and
exempt from taxation under section
501(a) of such Code; or
(ii) a State or local government
agency acting in cooperation with an
organization described in clause (i).
(4) No reduction in benefits.--Notwithstanding any
other provision of Federal law (other than the Internal
Revenue Code of 1986) that requires consideration of 1
or more financial circumstances of an individual, for
the purpose of determining eligibility to receive, or
the amount of, any assistance or benefit authorized by
such law to be provided to or for the benefit of such
individual, funds (including interest accruing) in an
individual development account under this subsection
shall be disregarded for such purpose with respect to
any period during which such individual maintains or
makes contributions into such an account.
(5) Definitions.--As used in this subsection--
(A) Eligible educational institution.--The
term ``eligible educational institution'' means
the following:
(i) An institution described in
section 481(a)(1) or 1201(a) of the
Higher Education Act of 1965 (20 U.S.C.
1088(a)(1) or 1141(a)), as such
sections are in effect on the date of
the enactment of this subsection.
(ii) An area vocational education
school (as defined in subparagraph (C)
or (D) of section 521(4) of the Carl D.
Perkins Vocational and Applied
Technology Education Act (20 U.S.C.
2471(4))) which is in any State (as
defined in section 521(33) of such
Act), as such sections are in effect on
the date of the enactment of this
subsection.
(B) Post-secondary educational expenses.--The
term ``post-secondary educational expenses''
means--
(i) tuition and fees required for the
enrollment or attendance of a student
at an eligible educational institution,
and
(ii) fees, books, supplies, and
equipment required for courses of
instruction at an eligible educational
institution.
(C) Qualified acquisition costs.--The term
``qualified acquisition costs'' means the costs
of acquiring, constructing, or reconstructing a
residence. The term includes any usual or
reasonable settlement, financing, or other
closing costs.
(D) Qualified business.--The term ``qualified
business'' means any business that does not
contravene any law or public policy (as
determined by the Secretary).
(E) Qualified business capitalization
expenses.--The term ``qualified business
capitalization expenses'' means qualified
expenditures for the capitalization of a
qualified business pursuant to a qualified
plan.
(F) Qualified expenditures.--The term
``qualified expenditures'' means expenditures
included in a qualified plan, including
capital, plant, equipment, working capital, and
inventory expenses.
(G) Qualified first-time homebuyer.--
(i) In general.--The term ``qualified
first-time homebuyer'' means a taxpayer
(and, if married, the taxpayer's
spouse) who has no present ownership
interest in a principal residence
during the 3-year period ending on the
date of acquisition of the principal
residence to which this subsection
applies.
(ii) Date of acquisition.--The term
``date of acquisition'' means the date
on which a binding contract to acquire,
construct, or reconstruct the principal
residence to which this subparagraph
applies is entered into.
(H) Qualified plan.--The term ``qualified
plan'' means a business plan which--
(i) is approved by a financial
institution, or by a nonprofit loan
fund having demonstrated fiduciary
integrity,
(ii) includes a description of
services or goods to be sold, a
marketing plan, and projected financial
statements, and
(iii) may require the eligible
individual to obtain the assistance of
an experienced entrepreneurial advisor.
(I) Qualified principal residence.--The term
``qualified principal residence'' means a
principal residence (within the meaning of
section 1034 of the Internal Revenue Code of
1986), the qualified acquisition costs of which
do not exceed 100 percent of the average area
purchase price applicable to such residence
(determined in accordance with paragraphs (2)
and (3) of section 143(e) of such Code).
(i) Sanction Welfare Recipients for Failing To Ensure That
Minor Dependent Children Attend School.--A State to which a
grant is made under section 403 shall not be prohibited from
sanctioning a family that includes an adult who has received
assistance under any State program funded under this part
attributable to funds provided by the Federal Government or
under the supplemental nutrition assistance program, as defined
in section 3(l) of the Food and Nutrition Act of 2008, if such
adult fails to ensure that the minor dependent children of such
adult attend school as required by the law of the State in
which the minor children reside.
(j) Requirement for High School Diploma or Equivalent.--A
State to which a grant is made under section 403 shall not be
prohibited from sanctioning a family that includes an adult who
is older than age 20 and younger than age 51 and who has
received assistance under any State program funded under this
part attributable to funds provided by the Federal Government
or under the supplemental nutrition assistance program, as
defined in section 3(l) of the Food and Nutrition Act of 2008,
if such adult does not have, or is not working toward
attaining, a secondary school diploma or its recognized
equivalent unless such adult has been determined in the
judgment of medical, psychiatric, or other appropriate
professionals to lack the requisite capacity to complete
successfully a course of study that would lead to a secondary
school diploma or its recognized equivalent.
(k) Limitations on Use of Grant for Matching Under Certain
Federal Transportation Program.--
(1) Use limitations.--A State to which a grant is
made under section 403 may not use any part of the
grant to match funds made available under section 3037
of the Transportation Equity Act for the 21st Century,
unless--
(A) the grant is used for new or expanded
transportation services (and not for
construction) that benefit individuals
described in subparagraph (C), and not to
subsidize current operating costs;
(B) the grant is used to supplement and not
supplant other State expenditures on
transportation;
(C) the preponderance of the benefits derived
from such use of the grant accrues to
individuals who are--
(i) recipients of assistance under
the State program funded under this
part;
(ii) former recipients of such
assistance;
(iii) noncustodial parents who are
described in section 403(a)(5)(C)(iii);
and
(iv) low-income individuals who are
at risk of qualifying for such
assistance; and
(D) the services provided through such use of
the grant promote the ability of such
recipients to engage in work activities (as
defined in section 407(d)).
(2) Amount limitation.--From a grant made to a State
under section 403(a), the amount that a State uses to
match funds described in paragraph (1) of this
subsection shall not exceed the amount (if any) by
which 30 percent of the total amount of the grant
exceeds the amount (if any) of the grant that is used
by the State to carry out any State program described
in subsection (d)(1) of this section.
(3) Rule of interpretation.--The provision by a State
of a transportation benefit under a program conducted
under section 3037 of the Transportation Equity Act for
the 21st Century, to an individual who is not otherwise
a recipient of assistance under the State program
funded under this part, using funds from a grant made
under section 403(a) of this Act, shall not be
considered to be the provision of assistance to the
individual under the State program funded under this
part.
(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.
(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)).
(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.
* * * * * * *
DISSENTING VIEWS
When we help Americans who are struggling pay for food,
utilities, or healthcare, Republicans are quick to label it
``welfare'' and accuse recipients of fraud. But when the
Department of Justice reaches into taxpayers' pockets and
steals $1.8 billion for a slush fund to pay the President and
his allies, including convicted criminals who beat police
officers guarding the Capitol on January 6th, they are silent.
Democrats strongly support eliminating fraud, waste, and
abuse, which is why last Congress we introduced the TANF State
Expenditure Integrity Act (H.R. 2108 in the current Congress).
H.R. 2108 would directly address the most egregious and costly
fraud in the Temporary Assistance for Needy Families program
(TANF) and return the funds to the children they were intended
to help. We asked Republicans to work with us to enact it. Last
Congress, the Majority refused, so we reintroduced it this
Congress.
Unlike our proposal, H.R. 8872, which was introduced less
than 48 hours before our markup, is not about fraud. The Acting
Chair confirmed that at our Committee markup. Rep. Judy Chu
offered an amendment with our proposal to require HHS to search
for and punish TANF fraud, which the House Parliamentarian has
twice referred solely to the Ways and Means Committee, and the
Acting Chair ruled that the Committee could not consider the
amendment because it was outside the scope of this Committee's
jurisdiction. We strongly disagree with the position that the
full scope of preventing fraud in TANF, including mandatory
administrative appropriations to support oversight and
investigations, is not part of the Committee's jurisdiction.
Unfortunately, because the Majority blocked Rep. Chu's
amendment, the only part of H.R. 8872 that is about fraud is
its misleading title.
During this Congress and enabled by the Majority, President
Trump's HHS has repeatedly demonstrated that their goal is not
to prevent fraud, but rather to use unsubstantiated fraud
allegations as a pretext to withhold funding to states whose
Governors the President dislikes. In fact, the Trump
Administration has enabled fraud, canceling the penalty the
previous Administration levied against Mississippi for criminal
TANF fraud. And the President has pardoned at least 21
individuals who were convicted of stealing $1.6 billion from
Medicare and Medicaid, which is more than the total TANF grant
in 48 states. The President's pardons wiped out over $2 billion
in restitution to people harmed by fraud, just like HHS wiped
out the penalty for stealing from poor children in Mississippi.
After wiping out penalties for real fraud, HHS froze $10
billion in critical social services funding to 5 states with
Democratic governors, claiming fraud but not producing a shred
of evidence for it. Federal courts forced HHS to return the
money before families were harmed, in part because of the
limits on HHS authority that H.R. 8872 would undermine. HHS has
also repeatedly attempted to use unsubstantiated fraud
allegations as a pretext to access taxpayer and beneficiary
data in order to share it with ICE for warrantless arrests of
immigrants and U.S. citizens alike.
H.R. 2108, the Democratic bill Republicans have blocked for
more than 2 years, would require the Department of Health and
Human Services (HHS) to address the real fraud in TANF--state
payments to contractors or sub-grantees who either misled the
state or conspired with the state to fraudulently use public
funds for purposes unrelated to helping struggling families and
poor children. Mississippi, for example, diverted $90 million
in TANF funding to wealthy and well-connected people like
former quarterback Brett Favre, who used it to build a
volleyball stadium and invest in stocks. The Mississippi case
has resulted in multiple criminal prosecutions, but the
Majority's only response to it was to invite Mr. Favre to
testify before our Committee and excuse his behavior. The
children of Mississippi have not been compensated.
Far from fighting fraud, H.R. 8872 would give HHS a new
tool to cut or freeze funding for states on the Trump enemies
list in order to force policy changes or extort sensitive
individual beneficiary data. Since the statistical calculation
under the Program Integrity Act (PIA) was not designed for
flexible block grants like TANF, the bill's vague instruction
to ``apply'' it would give HHS wide latitude to decide what the
calculation is, what data is required, and to design it to
justify payment freezes or data grabs that have so far been
blocked by courts. The Congressional Budget Office estimates
that H.R. 8872 would produce no budgetary savings.
The Chair did rule that amendments to prevent misuse of
TANF funds to give pregnant women incorrect medical information
and to require HHS to answer simple questions about their prior
actions to prevent states from accessing funding for child
care, work supports, adult protective services, and other key
social services were relevant to the bill's subject. Those
amendments to protect taxpayers and pregnant women were
rejected by the Majority.
H.R. 8872 fits the pattern of this Congress--President
Trump and his Republican allies in Congress rail against fraud
but intervene to enrich themselves or to protect rich, well-
connected fraudsters at taxpayer expense. We urge the Majority
to work with us to hold real criminals and fraudsters
accountable.
Sincerely,
Richard E. Neal,
Ranking Member.
[all]