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Makes state TANF (Temporary Assistance for Needy Families) programs subject to the Payment Integrity Information Act of 2019, so states must follow the same improper-payment reporting and recovery rules now applied to federal agencies. Requires the HHS Secretary to submit a plan to Congress within one year that aims to reduce or eliminate improper payments in these state programs over the next ten years; the new rules take effect October 1, 2026.
The bill strengthens federal payment-integrity rules to reduce improper payments and improve oversight, but it raises state compliance costs and may create verification hurdles that could delay benefits for eligible low-income people.
Taxpayers and state governments will likely see fewer improper payments because states must follow federal payment-integrity rules, which should save money over time.
Low-income families receiving Part A benefits will face fewer service disruptions as improper payments decline, improving continuity of assistance.
Congress (and the public) will get better oversight and transparency because HHS must provide a plan within one year on implementing payment-integrity requirements.
Eligible low-income individuals may face delays or extra paperwork if states tighten eligibility verification to avoid improper payments.
State and local governments will incur new compliance costs to implement federal payment-integrity requirements, possibly requiring budget reallocations or additional staff.
The goal to eliminate improper payments within 10 years may be unrealistic, risking unmet expectations for Congress and the public.
Introduced March 21, 2025 by Jodey Cook Arrington · Last progress March 21, 2025