This bill aims to reduce fraud and improper payments in the Temporary Assistance for Needy Families (TANF) program by requiring states to comply with federal payment integrity standards and mandating a federal plan to eliminate improper payments within 10 years.
Jodey Arrington
Representative
TX-19
The Eliminating Fraud and Improper Payments in TANF Act aims to strengthen the integrity of state programs funded under the Social Security Act by requiring them to adhere to the Payment Integrity Information Act of 2019 starting October 1, 2026. Additionally, it mandates the Secretary of Health and Human Services to develop a plan for Congress within a year, outlining strategies to reduce or eliminate improper payments made by states under part A of title IV of the Social Security Act within 10 years.
TANF Integrity Act Mandates Stricter Payment Reviews Starting 2026, Sets 10-Year Goal to Cut Errors
This proposed legislation, the "Eliminating Fraud and Improper Payments in TANF Act," sets new requirements for states managing federal benefit programs and tasks the federal government with a long-term strategy to reduce payment errors.
Specifically, the bill mandates that starting October 1, 2026, states must apply the standards of the Payment Integrity Information Act of 2019 (PIIA) to all programs they administer using funds under the Social Security Act. This includes programs like Temporary Assistance for Needy Families (TANF). Essentially, PIIA is a federal framework designed to identify and prevent payments made improperly – whether due to error, waste, or fraud.
Getting States on the Same Page: The PIIA Mandate
What does this mean in practice? State agencies responsible for distributing benefits like TANF will need to ensure their processes for tracking, verifying, and reporting payments meet these federal PIIA standards by the 2026 deadline. This could involve upgrading technology, changing internal procedures, or increasing audits to better catch payments that shouldn't have gone out or were issued for the incorrect amount. The core idea, as outlined in Section 2, is to bring more rigorous oversight to how federal dollars are spent at the state level.
The 10-Year Plan: HHS Takes Aim at Errors
Beyond the state-level requirement, the bill also directs the Secretary of Health and Human Services (HHS) to develop a concrete plan within one year of the Act's passage. This plan must outline strategies to significantly reduce or even eliminate improper payments specifically within the TANF program (funded under Part A, Title IV of the Social Security Act) over the next ten years. "Improper payments" generally refer to any payment that shouldn't have been made or was made in an incorrect amount. While the focus is often on preventing fraud and overpayments, it can technically include underpayments too. The specifics of how HHS plans to achieve this reduction will depend on the strategy they present to Congress, potentially influencing future eligibility checks or payment distribution methods.