New federal unit would track how TANF subrecipients spend aid funds

What does this do?

HR 2108 would establish a TANF Program Integrity Unit inside the Department of Health and Human Services to monitor outside organizations that receive TANF funds from states. The unit would look specifically for intentional misuse of those funds and report its findings to Congress annually. States would also be required to share more information with the federal government to support this oversight.

Who does it affect?

The bill directly affects state governments that administer TANF programs and the outside organizations, called subrecipients, that receive TANF money from states. Low-income families who rely on those funds are also affected by how the money is ultimately spent.

Why does it matter?

If a subrecipient is found to have intentionally misused TANF funds, the state that oversaw it must spend an equal amount of its own money on direct cash assistance to families below the poverty line, on top of existing penalties. This creates a financial consequence for states tied to the conduct of organizations they authorize to deliver TANF services.

What does it cost, and who pays?

• $10M per year for federal unit
• States pay matching funds as penalty
• Penalty funds go to families in poverty

Where does it stand?