May 19, 2026
Mr. Carey (for himself, Mr. Arrington, Mr. Bean of Florida, Mr. Miller of Ohio, Mr. Smith of Nebraska, and Ms. Tenney) introduced the following bill; which was referred to the Committee on Ways and Means
To amend part A of title IV of the Social Security Act to target funds to low-income families, strengthen program integrity guardrails for State expenditure of funds, require measurement of improper payments, and establish goals for eliminating fraud and improper payments under the program of block grants to States for temporary assistance for needy families, and for other purposes.
Section 1. Short title
This Act may be cited as the Preventing Waste, Fraud, and Abuse in TANF Act
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Sec. 2. Strengthening program integrity through improper payments review
(a) In general
Section 404 of the Social Security Act (42 U.S.C. 604) is amended by adding at the end the following:
(l) Applicability of payment integrity law
The Payment Integrity Information Act of 2019 shall apply to a State in respect of the State program funded under this part in the same manner in which such Act applies to a Federal agency.
(b) Report to Congress
Within 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Congress a written report that contains a plan to reduce or eliminate improper payments made by States under part A of title IV of the Social Security Act within 10 years.
Sec. 3. Targeting funds to families in need
Section 404 of the Social Security Act (42 U.S.C. 604) is further amended by adding at the end the following:
(m) Establishing a threshold for families in need
A State to which a grant is made under section 403(a)(1) shall use the grant only to provide assistance or services to a family whose income is less than twice the poverty guidelines updated periodically in the Federal Register under section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)).
Sec. 4. Deadlines for the obligation and expenditure of funds
Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended to read as follows:
(e) Deadlines for obligation and expenditure of funds by States
(1) In general
Except as provided in paragraph (2), a State to which funds are paid, after the effective date of this subsection, under section 403(a)(1) for a fiscal year shall obligate the funds not later than the end of the succeeding fiscal year, and shall expend the funds not later than the end of the 2nd succeeding fiscal year.
(2) Exception for limited amount of funds set aside for future use
(A) In general
Notwithstanding paragraph (1) of this subsection, a State to which funds are paid under section 403(a)(1), after the effective date of this subsection, for a fiscal year may reserve not more than 15 percent of the funds for future use in the State program funded under this part, subject to subparagraph (B) of this paragraph.
(B) Limitation
The total amount held in reserve by a State under subparagraph (A) of this paragraph shall not exceed an amount equal to 50 percent of the total amount paid to the State under section 403(a)(1) for the then preceding fiscal year.
(C) Notice of intent to reserve funds
A State that intends to reserve funds under subparagraph (A) shall notify the Secretary of the intention not later than the end of the period in which the funds are available for obligation without regard to subparagraph (A) of this paragraph.
Sec. 5. Prohibition on State diversion of Federal funds to replace State spending
(a) In general
Section 404 of the Social Security Act (42 U.S.C. 604) is further amended by adding at the end the following:
(n) Limitation on use of Federal funds to replace State general revenue funds
A State shall use Federal funds received under this part only to supplement funds that, in the absence of the Federal funds, would be made available from State and local sources for programs assisted under this part, and not to supplant the funds.
(b) State certification
Section 402(a) of such Act (42 U.S.C. 602(a)) is amended by adding at the end the following:
(9) Certification of State supplementation
A certification by the chief executive officer of the State that the funds provided to the State under this part will not be used to supplant State or non-Federal funds for services and activities that promote the purposes of this part.
Sec. 6. Effective date
The amendments made by this Act shall take effect on October 1, 2027.