The bill aims to reduce improper payments and boost transparency—potentially saving taxpayer dollars—but does so by imposing new compliance costs and administrative burdens on states that could lessen funding for direct services and delay benefits for low‑income families.
Taxpayers and state governments: the bill's required PIIA practices aim to reduce improper payments, which could save taxpayer dollars and cut waste in federal/state assistance programs.
Low‑income individuals, taxpayers, and state governments: increased oversight and reporting requirements should improve transparency and accountability of State‑administered assistance programs.
Taxpayers: the HHS plan established by the bill sets a multi‑year goal (up to 10 years) to eliminate or substantially reduce improper payments, creating a clearer pathway for longer‑term reductions in waste.
State governments and low‑income program recipients: implementing PIIA requirements will create administrative costs for states that could divert funds away from direct services under part A.
Low‑income individuals served by part A programs: increased compliance and reporting burdens may slow benefit delivery or add bureaucratic complexity, harming timely access to assistance.
State governments and taxpayers: if federal or additional state funds aren't provided, meeting new PIIA standards could strain state budgets and force tradeoffs in services or taxes.
Based on analysis of 2 sections of legislative text.
Applies Payment Integrity Information Act requirements to State TANF programs and requires HHS to submit a 10-year improper-payment reduction plan.
Official title: To amend part A of title IV of the Social Security Act to measure 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.
Introduced March 21, 2025 by Jodey Cook Arrington · Last progress March 21, 2025
Applies the Payment Integrity Information Act of 2019 (PIIA) to State-run Temporary Assistance for Needy Families (TANF) programs funded under part A of title IV, making States subject to the same improper-payment measurement, reporting, and reduction requirements that now apply to federal agencies. The change takes effect October 1, 2026, and directs the HHS Secretary to submit a plan within one year to reduce or eliminate improper TANF payments over a ten-year period.