I
119THCONGRESS
1
STSESSION H. R. 2108
To prevent and address intentional misuse of subrecipient TANF funds.
IN THE HOUSE OF REPRESENTATIVES
MARCH14, 2025
Mr. D
AVISof Illinois (for himself, Ms. CHU, Mr. EVANSof Pennsylvania, Mr.
G
OMEZ, Ms. MOOREof Wisconsin, and Mr. THOMPSONof Mississippi) in-
troduced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To prevent and address intentional misuse of subrecipient
TANF funds.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘TANF State Expendi-4
ture Integrity Act of 2025’’. 5
SEC. 2. AUTHORITY TO PREVENT AND ADDRESS INTEN-6
TIONAL MISUSE OF SUBRECIPIENT FUNDS 7
UNDER THE TANF PROGRAM. 8
(a) I
NGENERAL.—Section 417 of the Social Security 9
Act (42 U.S.C. 617) is amended— 10
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(1) by inserting ‘‘(a) INGENERAL.—’’ before 1
‘‘No’’; and 2
(2) by adding at the end the following: 3
‘‘(b) A
UTHORITYTOPREVENTINTENTIONALMIS-4
USE OFSUBRECIPIENTFUNDS.— 5
‘‘(1) S
UBRECIPIENT MONITORING .— 6
‘‘(A) I
N GENERAL.—The Secretary— 7
‘‘(i) shall develop a framework for the 8
monitoring of subrecipient use of funds 9
provided under section 403(a)(1) of this 10
Act, for the purpose of identifying inten-11
tional misuse, to supplement single State 12
audits conducted under chapter 75 of title 13
31, United States Code; 14
‘‘(ii) may establish State plan require-15
ments or formats relating to clause (i); and 16
‘‘(iii) may require States to report to 17
the Secretary such information to supple-18
ment the report provided under section 19
411(a) as the Secretary determines is nec-20
essary to enable the Secretary to comply 21
with clauses (i) and (ii) of this subpara-22
graph. 23
‘‘(B) N
O EFFECT ON SINGLE STATE AUDIT 24
AUTHORITY.—Clause (i) of this subparagraph 25
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shall not be interpreted to limit the authority of 1
the Secretary to conduct single State audits 2
under chapter 75 of title 31, United States 3
Code. 4
‘‘(2) P
ROGRAM INTEGRITY UNIT AUTHORIZA -5
TION AND FUNDING.— 6
‘‘(A) TANF
PROGRAM INTEGRITY UNIT .— 7
The Secretary shall create a TANF Program 8
Integrity Unit at the Administration for Chil-9
dren & Families, which shall conduct the moni-10
toring described in paragraph (1)(A)(i). 11
‘‘(B) A
PPROPRIATION.—Out of any money 12
in the Treasury not otherwise appropriated, the 13
amount made available in section 403(a)(1)(C) 14
for each fiscal year shall be increased by 15
$10,000,000, and the amount of the increase 16
shall be available for the staffing and oper-17
ations of the TANF Program Integrity Unit 18
and related functions. 19
‘‘(3) A
NNUAL REPORT TO THE CONGRESS .— 20
The Secretary shall submit an annual report to the 21
Congress on the activities undertaken under para-22
graph (2)(A) in the fiscal year covered by the re-23
port.’’. 24
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(b) REMEDIES.—Section 409(a)(1)(B) of such Act 1
(42 U.S.C. 609(a)(1)(B)) is amended— 2
(1) by striking ‘‘(B) E
NHANCED PENALTY FOR 3
INTENTIONAL VIOLATIONS .—If’’ and inserting the 4
following: 5
‘‘(B) E
NHANCED PENALTY FOR INTEN -6
TIONAL VIOLATIONS.— 7
‘‘(i) I
N GENERAL.—If’’; and 8
(2) by adding at the end the following: 9
‘‘(ii) A
DDITIONAL REMEDIES .—If the 10
Secretary finds, as a result of subrecipient 11
monitoring under section 417(b)(1) of this 12
Act, that an amount has been intentionally 13
misused in violation of this part, then the 14
Secretary shall— 15
‘‘(I) notify the State involved of 16
the finding; and 17
‘‘(II) in addition to any penalty 18
imposed under clause (i), require the 19
State to expend, in addition to any 20
other amount required to be expended 21
under the State program funded 22
under this part, an amount equal to 23
the amount so misused, for the provi-24
sion of cash assistance directly to 25
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families with an income below 100 1
percent of the poverty line (as defined 2
in section 673(2) of the Omnibus 3
Budget Reconciliation Act of 1981, 4
including any revision required by 5
such section, applicable to a family of 6
the size involved).’’. 7
(c) D
EADLINE FOR PUBLICATION OF NOTICE OF 8
R
ULEMAKING.—Within 2 years after the date of the en-9
actment of this Act, the Secretary of Health and Human 10
Services shall publish a notice of rulemaking to implement 11
the amendments made by this section. 12
(d) E
FFECTIVEDATE.—The amendments made by 13
this section shall take effect on the later of— 14
(1) the 1st day of the 5th calendar quarter that 15
begins after the date of the enactment of this Act; 16
or 17
(2) the 1st day of the 1st Federal fiscal year 18
that begins after such date of enactment. 19
Æ
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