The Eliminating Fraud and Improper Payments in TANF Act amends section 404 of the Social Security Act to make the Payment Integrity Information Act of 2019 (PIIA) apply to State-administered Temporary Assistance for Needy Families (TANF) programs “in the same manner” that PIIA applies to federal agencies. The amendment takes effect October 1, 2026.
The bill also requires the Secretary of Health and Human Services to submit a written plan to Congress within one year of enactment that outlines how to reduce or eliminate improper payments under TANF within ten years. The statute is narrowly focused: it prescribes new reporting and measurement obligations rather than creating new sanctions, funding, or eligibility rules.
At a Glance
What It Does
It amends 42 U.S.C. 604 to make the Payment Integrity Information Act of 2019 apply to State TANF programs, establishes an October 1, 2026 effective date, and directs HHS to deliver a written plan to eliminate improper payments within ten years, due within one year of enactment.
Who It Affects
State TANF agencies that administer block grants, HHS as the implementing federal agency, and indirectly TANF recipients and state taxpayers who bear the consequences of improper payments or compliance costs.
Why It Matters
The bill subjects a major federal block‑grant program to federal improper‑payment measurement and reporting standards for the first time, creating new transparency and potential accountability pressures while leaving open how costs and enforcement will be handled.
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What This Bill Actually Does
The bill inserts a new clause into the statutory provision governing TANF that says: treat State TANF programs the same as federal agencies for the purposes of the Payment Integrity Information Act of 2019. Practically, that means states will have to align with the PIIA’s requirements—such as conducting improper‑payment risk assessments, estimating improper‑payment rates, developing corrective action plans, and reporting results—although the bill itself does not restate those PIIA procedures.
Lawmakers set an explicit start date for those obligations: October 1, 2026. The bill does not provide grant funding, technical assistance, or a new federal enforcement mechanism in the text; it relies on HHS to integrate PIIA processes into existing oversight of part A of title IV.
To create a roadmap for this change, the Secretary must submit a written plan to Congress within one year that explains how to reduce or eliminate improper payments under TANF over a ten‑year horizon.Because TANF is a block‑grant program with significant state variation in eligibility, benefits, and administration, the practical work will be in how HHS translates PIIA’s agency‑focused metrics into state contexts. The written plan is likely intended to define methodologies, propose timelines and milestones, and signal where federal support or statutory clarifications may be needed.
The bill leaves those details to HHS rather than prescribing them in statute.
The Five Things You Need to Know
The bill amends section 404 of the Social Security Act (42 U.S.C. 604) to make the Payment Integrity Information Act of 2019 applicable to State TANF programs.
Application of PIIA obligations to TANF takes effect on October 1, 2026.
Within one year of enactment, the Secretary of HHS must deliver to Congress a written plan to reduce or eliminate improper payments under TANF within ten years.
The statute requires reporting and planning but does not appropriate funds, create new penalties, or alter TANF eligibility or benefit rules.
PIIA typically requires risk assessments, improper‑payment estimates, and corrective action plans—meaning states will face new measurement and reporting demands once the law is implemented.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Short title
Designates the act as the "Eliminating Fraud and Improper Payments in TANF Act." This is purely nominal but signals congressional intent to emphasize program integrity for TANF moving forward.
Apply the Payment Integrity Information Act to TANF
Adds a new subsection to 42 U.S.C. 604 that states the Payment Integrity Information Act of 2019 shall apply to a State with respect to the State program funded under part A of title IV 'in the same manner' as it applies to a Federal agency. The practical implication is that the statutory PIIA framework—risk assessments, improper payment estimates, root‑cause analysis, corrective action plans, and annual reporting—becomes the governing standard for how improper payments in TANF are identified and disclosed.
Effective date for PIIA coverage
Sets the effective date for the PIIA application to state TANF programs as October 1, 2026. States and HHS have a defined lead time to prepare systems and methodology, but the statute does not specify transition assistance or phased implementation steps.
HHS report and 10‑year reduction plan
Requires the Secretary of HHS to submit to Congress a written plan within one year of enactment that details how to reduce or eliminate improper payments under part A of title IV within ten years. The provision makes HHS the architect of the operational plan—measurement approaches, performance goals, and likely recommendations for statutory or funding changes—without mandating particular remedies or timelines beyond the 10‑year objective.
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Explore Social Services in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- TANF recipients who rely on limited program resources — better measurement of improper payments can redirect recovered or saved funds toward benefits and services if states use findings to tighten accuracy rather than cut eligibility.
- Federal oversight bodies and Congress — clearer, standardized improper‑payment metrics will improve visibility into how TANF funds are used across states and facilitate oversight and budgeting decisions.
- Taxpayers — improved detection and reduction of improper payments could reduce waste and improve the fiscal efficiency of the TANF block‑grant program over time.
Who Bears the Cost
- State TANF agencies — they will face new compliance obligations, likely requiring IT upgrades, staff training, data matching, audit capacity, and ongoing reporting to meet PIIA standards.
- HHS — the agency must design and deliver the required ten‑year reduction plan within a year and will need to translate agency‑level PIIA requirements into state‑level metrics and oversight tools.
- Recipients and applicants — stricter verification and more aggressive error‑reduction efforts could increase administrative burdens on applicants and risk incorrect denials or delays if states over‑correct without safeguards.
Key Issues
The Core Tension
The central dilemma is between improving program integrity through standardized measurement and avoiding an unfunded federal imposition that shifts compliance costs to states and risks restricting eligible families’ access; the bill mandates transparency and goals but leaves unresolved whether and how to support states in meeting them without unintended consequences.
The bill creates a legal bridge between an agency‑focused federal statute (PIIA) and a federally funded, state‑administered block‑grant program. That bridge raises immediate technical questions: PIIA’s estimation methodologies were designed for federal payment streams with centralized payment and reporting systems; applying the same models to decentralized block grants that vary by state will require methodological adaptation—an exercise HHS must execute in the required plan.
The statute does not prescribe those methodologies, nor does it allocate funds for states to upgrade systems or comply with more demanding data requirements.
Another trade‑off involves incentives. Public disclosure of improper‑payment estimates and corrective plans can drive accountability, but it also creates pressure on states to reduce reported error rates quickly.
Without accompanying guidance, funding, or safeguards, states may respond by tightening eligibility verification or adopting conservative practices that reduce access for eligible families. The bill also leaves enforcement mechanisms ambiguous: it imposes measurement and reporting duties but does not amend funding structures, penalties, or grant conditions tied to TANF performance, so the effectiveness of new reporting depends on administrative follow‑through and potential future legislation.
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