TANF State Expenditure Integrity Act of 2025

Bill Number

H.R. 2108

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Social Welfare

Status

Introduced

Latest Action

2025-03-14: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-05T23:21:23Z

AI-Generated Summary

Purpose of the Legislation

The TANF State Expenditure Integrity Act of 2025 aims to strengthen oversight of the Temporary Assistance for Needy Families (TANF) program by preventing and addressing intentional misuse of funds provided to subrecipients (organizations or entities that receive TANF funds from states to deliver services). TANF is a federal welfare program that provides cash assistance and support services to low-income families with children.

Key Provisions

• Monitoring Framework: The Secretary of Health and Human Services (HHS) must create a system to monitor how subrecipients use TANF funds, focusing on detecting intentional misuse (e.g., deliberate improper spending). This supplements existing state audits but does not replace them.
• State Reporting Requirements: HHS can require states to submit additional information beyond standard TANF reports to support monitoring efforts and may set related rules in state TANF plans.
• TANF Program Integrity Unit: HHS must establish a dedicated unit within the Administration for Children and Families to handle this monitoring. It receives an additional $10 million per fiscal year from TANF funding for staffing and operations.
• Annual Reporting to Congress: HHS must submit a yearly report detailing the unit's activities.
• Enhanced Penalties and Remedies: If intentional misuse is found through monitoring:
• States face existing penalties (e.g., reduced federal funding).
• Additionally, states must notify affected parties and spend an amount equal to the misused funds on direct cash assistance to families with incomes below 100% of the federal poverty line (a measure of low income based on family size).
• Implementation Timeline: HHS must publish proposed rules within 2 years of enactment. Changes take effect on the later of the first day of the fifth calendar quarter after enactment or the start of the next federal fiscal year.

Significant Changes to Existing Law

• Amends Section 417 of the Social Security Act to add new authority for subrecipient monitoring and the creation of the Integrity Unit, which did not previously exist.
• Expands Section 409(a)(1)(B) of the Social Security Act by introducing an additional remedy (required spending on cash assistance) beyond current penalties for intentional violations, specifically tied to subrecipient misuse findings.
• Increases TANF funding allocation by $10 million annually for oversight, redirecting existing program resources without new general appropriations.

Potential Impacts

• Government Agencies: HHS gains new responsibilities for monitoring, rulemaking, and reporting, with dedicated funding to support a specialized unit. States may face increased administrative burdens from reporting and potential penalties, including mandatory spending on specific aid.
• Citizens: Low-income families could benefit from better protection of TANF funds, ensuring more resources reach those below the poverty line through direct cash assistance. However, stricter oversight might indirectly affect service delivery if subrecipients face delays or restrictions.
• International Relations: No direct impacts, as this is a domestic welfare program.

Main Stakeholders Affected

• Federal Government (HHS): Responsible for creating and operating the monitoring framework and Integrity Unit.
• States: Must comply with new reporting, face penalties for misuse, and potentially redirect funds to cash assistance.
• Subrecipient Organizations: Nonprofits, community groups, or other entities receiving TANF funds will undergo increased scrutiny to prevent intentional misuse.
• Low-Income Families: Primary beneficiaries, as remedies ensure misused funds are recouped for direct aid to those in poverty.

Notable Legal, Constitutional, or Political Implications

• Legal: Enhances federal enforcement of TANF rules without altering core program eligibility or benefits, but introduces specific remedies that could lead to disputes over what constitutes "intentional misuse." The 2-year rulemaking deadline ensures a structured implementation process under the Administrative Procedure Act (federal law governing agency regulations).
• Constitutional: No apparent challenges, as it involves federal spending conditions on states, which is permissible under the Spending Clause of the U.S. Constitution (allowing Congress to attach conditions to federal grants).
• Political: Promotes fiscal accountability in welfare spending, potentially appealing to those focused on program integrity and anti-fraud measures. It could spark debate over federal overreach into state-administered programs or the burden on subrecipients, but maintains state flexibility in TANF delivery.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Davis, Danny K. [D-IL-7]

Cosponsors (9)

Rep. Chu, Judy [D-CA-28], Rep. Evans, Dwight [D-PA-3], Rep. Gomez, Jimmy [D-CA-34], Rep. Moore, Gwen [D-WI-4], Rep. Thompson, Bennie G. [D-MS-2], Rep. Beyer, Donald S. [D-VA-8], Rep. Horsford, Steven [D-NV-4], Rep. Sánchez, Linda T. [D-CA-38], Rep. Larson, John B. [D-CT-1]

Recent Actions

• 2025-03-14: Referred to the House Committee on Ways and Means.
• 2025-03-14: Introduced in House
• 2025-03-14: Introduced in House

Bill Versions

• TANF State Expenditure Integrity Act of 2025 — issued 2025-03-14 — PDF (5 pages)