The bill increases federal oversight and establishes a timeline to reduce improper payments—likely saving taxpayer money and protecting program integrity—but it also imposes compliance costs on states that could divert resources, be passed to taxpayers, or lead to stricter checks that harm some low-income beneficiaries.
Taxpayers and state governments are likely to see fewer improper payments and resulting taxpayer savings because HHS must produce a plan and states will be held to federal payment-integrity standards.
The required HHS plan and timeline create federal accountability and a clear timeline (plan within 1 year, goal within 10 years) for reducing improper payments.
Reducing improper payments can preserve program funds and protect program integrity for eligible low-income beneficiaries by keeping resources available for those who qualify.
State governments will incur new administrative and compliance costs to meet federal payment-integrity requirements, which could divert resources and may lead to reduced services or higher state budgetary pressure.
Increased oversight and stricter eligibility checks during implementation could delay or reduce benefits for some low-income individuals.
Based on analysis of 2 sections of legislative text.
Extends the Payment Integrity Information Act of 2019 to State-run TANF programs and requires HHS to deliver a 10-year plan to reduce improper TANF payments.
Introduced March 21, 2025 by Jodey Cook Arrington · Last progress March 21, 2025
Applies the Payment Integrity Information Act of 2019 to State-run TANF programs, treating States like Federal agencies for the purposes of that Act and making those payment-integrity requirements applicable to federally funded TANF (part A of title IV) activities. Requires the HHS Secretary to provide Congress, within one year of enactment, a written plan to reduce or eliminate improper TANF payments within 10 years. The new requirements take effect October 1, 2026.