H.R. 2108

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2108 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 2108

To prevent and address intentional misuse of subrecipient TANF funds.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 14, 2025

Mr. Davis of Illinois (for himself, Ms. Chu, Mr. Evans of Pennsylvania, 
Mr. Gomez, Ms. Moore of Wisconsin, and Mr. Thompson of Mississippi) 
introduced 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``TANF State Expenditure Integrity Act 
of 2025''.

SEC. 2. AUTHORITY TO PREVENT AND ADDRESS INTENTIONAL MISUSE OF 
SUBRECIPIENT FUNDS UNDER THE TANF PROGRAM.

(a) In General.--Section 417 of the Social Security Act (42 U.S.C. 
617) is amended--
(1) by inserting ``(a) In General.--'' before ``No''; and
(2) by adding at the end the following:
``(b) Authority To Prevent Intentional Misuse of Subrecipient 
Funds.--
``(1) Subrecipient monitoring.--
``(A) In general.--The Secretary--
``(i) shall develop a framework for the 
monitoring of subrecipient use of funds 
provided under section 403(a)(1) of this Act, 
for the purpose of identifying intentional 
misuse, to supplement single State audits 
conducted under chapter 75 of title 31, United 
States Code;
``(ii) may establish State plan 
requirements or formats relating to clause (i); 
and
``(iii) may require States to report to the 
Secretary such information to supplement the 
report provided under section 411(a) as the 
Secretary determines is necessary to enable the 
Secretary to comply with clauses (i) and (ii) 
of this subparagraph.
``(B) No effect on single state audit authority.--
Clause (i) of this subparagraph shall not be 
interpreted to limit the authority of the Secretary to 
conduct single State audits under chapter 75 of title 
31, United States Code.
``(2) Program integrity unit authorization and funding.--
``(A) TANF program integrity unit.--The Secretary 
shall create a TANF Program Integrity Unit at the 
Administration for Children & Families, which shall 
conduct the monitoring described in paragraph 
(1)(A)(i).
``(B) Appropriation.--Out of any money in the 
Treasury not otherwise appropriated, the amount made 
available in section 403(a)(1)(C) for each fiscal year 
shall be increased by $10,000,000, and the amount of 
the increase shall be available for the staffing and 
operations of the TANF Program Integrity Unit and 
related functions.
``(3) Annual report to the congress.--The Secretary shall 
submit an annual report to the Congress on the activities 
undertaken under paragraph (2)(A) in the fiscal year covered by 
the report.''.
(b) Remedies.--Section 409(a)(1)(B) of such Act (42 U.S.C. 
609(a)(1)(B)) is amended--
(1) by striking ``(B) Enhanced penalty for intentional 
violations.--If'' and inserting the following:
``(B) Enhanced penalty for intentional 
violations.--
``(i) In general.--If''; and
(2) by adding at the end the following:
``(ii) Additional remedies.--If the 
Secretary finds, as a result of subrecipient 
monitoring under section 417(b)(1) of this Act, 
that an amount has been intentionally misused 
in violation of this part, then the Secretary 
shall--
``(I) notify the State involved of 
the finding; and
``(II) in addition to any penalty 
imposed under clause (i), require the 
State to expend, in addition to any 
other amount required to be expended 
under the State program funded under 
this part, an amount equal to the 
amount so misused, for the provision of 
cash assistance directly to families 
with an income below 100 percent of the 
poverty line (as defined in section 
673(2) of the Omnibus Budget 
Reconciliation Act of 1981, including 
any revision required by such section, 
applicable to a family of the size 
involved).''.
(c) Deadline for Publication of Notice of Rulemaking.--Within 2 
years after the date of the enactment of this Act, the Secretary of 
Health and Human Services shall publish a notice of rulemaking to 
implement the amendments made by this section.
(d) Effective Date.--The amendments made by this section shall take 
effect on the later of--
(1) the 1st day of the 5th calendar quarter that begins 
after the date of the enactment of this Act; or
(2) the 1st day of the 1st Federal fiscal year that begins 
after such date of enactment.
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