HR 8872: Preventing Waste, Fraud, and Abuse in TANF Act

HR 8872 in plain English: This bill sets new rules for how states can use federal Temporary Assistance for Needy Families (TANF) funds, including a new income eligibility cap and deadlines for spending the money. It requires states to limit TANF-funded benefits to families earning under 200% of the federal poverty level and to spend funds within set timeframes rather than carrying them over indefinitely. It also strengthens requirements to track and reduce improper payments.

Stated purpose

The bill aims to prevent waste, fraud, and abuse in the Temporary Assistance for Needy Families (TANF) program by targeting funds to low-income families, setting deadlines for states to spend funds, and requiring tracking and reporting of improper payments.

Key points

• Limits TANF-funded assistance to families with income below 200% of the federal poverty guidelines
• Requires states to obligate TANF funds by the end of the fiscal year after receipt and spend them by the end of the second fiscal year
• Requires states to use federal TANF funds to supplement, not replace, state and local funding
• Requires states to track and report improper payments such as overpayments or payments to ineligible recipients
• Requires HHS to submit a plan within one year to reduce or eliminate improper TANF payments within 10 years

Arguments supporters make

• Federal TANF money should go to the neediest families, and setting a clear income limit ensures funds are not spent on households that may not truly need assistance.
• Requiring states to spend funds within set time limits stops money from sitting unused while struggling families go without help, and transparency on improper payments protects taxpayers.
• Prohibiting states from replacing their own spending with federal dollars ensures TANF funds actually expand help for families rather than letting states off the hook for their own commitments.

Arguments opponents make

• States currently have flexibility to design TANF programs that meet their own communities' needs, and adding federal income caps and spending deadlines reduces that flexibility and may harm effective local programs.
• The income threshold and new rules could cut off non-cash services like job training or childcare assistance from working families who are just above the poverty line but still struggling financially.
• Strict spend-by deadlines may force states to rush spending decisions rather than carefully planning how to use funds most effectively, potentially leading to less efficient outcomes for families.

Tradeoffs

Tighter federal rules and income limits may reduce fraud and better target aid to the poorest families, but they also restrict the flexibility states have used to design programs suited to their populations, and some working families above the threshold could lose access to support services they currently receive.

Current status in Congress: Passed House.

NewsClear — neutral news & congressional tracking · Bill of the Week