Eliminating Fraud and Improper Payments in TANF Act

This bill aims to cut down on money paid by mistake or because of fraud in the Temporary Assistance for Needy Families (TANF) program. It requires states to follow the same “payment integrity” rules that federal agencies use. In short, states will have to measure and report improper payments in TANF and work toward reducing them. The goal is to protect funds so more help goes to families who truly qualify.

The Health and Human Services Secretary must also send Congress a plan within one year for how to reduce or eliminate these improper payments within ten years. The new requirements for states start on October 1, 2026.

• Who is affected: State TANF agencies, families receiving TANF, and taxpayers.
• What changes: States must follow federal-style payment integrity rules and track/reduce improper payments; HHS must provide a 10-year reduction plan.
• When: State requirements take effect October 1, 2026; the HHS plan is due within one year of enactment.