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House Bill 8872
119th Congress(2025-2026)
Preventing Waste, Fraud, and Abuse in TANF Act
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Introduced in House on May 19, 2026
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H. R. 8872 (Reported-in-House)

Union Calendar No. 584

119th CONGRESS
2d Session
H. R. 8872

[Report No. 119–670]


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.

IN THE HOUSE OF REPRESENTATIVES

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

May 29, 2026

Additional sponsors: Mr. Moore of Utah, Mrs. Miller of West Virginia, and Mr. Feenstra

May 29, 2026

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on May 19, 2026]

A BILL

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.

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 “Preventing Waste, Fraud, and Abuse in TANF Act”.

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 with respect to 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.

Union Calendar No. 584

119th CONGRESS
     2d Session
H. R. 8872
[Report No. 119–670]
A BILL
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.
May 29, 2026
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed