HR 2242119th CongressIn Committee

Eliminating Fraud and Improper Payments in TANF Act

Introduced: Mar 21, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Eliminating Fraud and Improper Payments in TANF Act (H.R. 2242), introduced in the House on March 21, 2025 by Rep. Arrington, would extend the Payment Integrity Information Act of 2019 (PIIA) to the Temporary Assistance for Needy Families (TANF) program. Specifically, it would apply PIIA’s requirements to the TANF State block grant program under part A of title IV of the Social Security Act, in the same way PIIA applies to federal agencies. The bill establishes an Oct. 1, 2026 effective date for this extension and requires the Secretary of Health and Human Services to report to Congress within one year with a plan to reduce or eliminate improper TANF payments within 10 years. In short, the bill aims to formalize and tighten the measurement, reporting, and oversight of improper payments (including fraud and errors) in TANF by aligning state program requirements with federal payment integrity standards, and it creates a federal roadmap and timeline for reducing such improper payments over the next decade.

Key Points

1Applies the Payment Integrity Information Act of 2019 to state TANF programs, treating state TANF funds similarly to how the Act currently applies to federal agencies. This brings formal requirements for preventing, detecting, and reporting improper payments to TANF administered by states.
2Effective date: October 1, 2026. The state TANF programs would begin operating under these payment integrity requirements starting on that date.
3Plan to reduce improper TANF payments: Within one year after enactment, the Secretary of Health and Human Services must submit to Congress a written plan detailing how improper TANF payments will be reduced or eliminated within a 10-year period.
4Legislative vehicle and scope: The changes are made through an amendment to section 404 of the Social Security Act (title IV, part A), expanding TANF program integrity obligations under federal law.
5Purpose and framing: The bill is titled to emphasize eliminating fraud and improper payments in TANF, signaling an emphasis on program integrity, fraud prevention, and accountability in the TANF program.

Impact Areas

Primary group/area affected- State TANF agencies and their administrators, who would need to implement PIIA-like internal controls, reporting, and audit practices.- TANF recipients and applicant households, who could experience changes in administrative processes related to eligibility determination, overpayments, and recovery efforts.- State-level program integrity and audit functions, which would align with federal-style payment integrity requirements.Secondary group/area affected- Federal oversight entities (Department of Health and Human Services, particularly the Office of the Secretary and related divisions, plus the Social Security Administration as the overarching statute, and the Office of Inspector General and GAO) responsible for enforcing, auditing, and evaluating compliance.- Taxpayers and beneficiaries of federal programs, who may benefit from reduced improper payments but could face increased administrative requirements and state reporting burdens.- Service providers and contractors involved with TANF administration, since program integrity measures could affect compliance expectations and oversight.Additional impacts- Data collection, reporting, and transparency: States would need to collect and report data on improper payments, potentially increasing data sharing and publication of performance metrics.- Costs and administrative burden: States may incur costs to implement internal controls, risk assessments, independent audits, and enhanced reporting aligned with PIIA standards.- Privacy and due-process considerations: Expanded data collection and repayment recovery activities could raise questions about privacy protections and notice/appeal rights for recipients.- Long-term program integrity outcomes: If implemented effectively, the framework could reduce improper payments and fraud in TANF, improving taxpayer dollars’ use and program efficiency; however, actual results would depend on state implementation and enforcement.

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