Summary

Creates a TANF Program Integrity Unit inside the Administration for Children and Families to monitor and address intentional misuse of TANF funds by subrecipients, requires HHS to develop a subrecipient monitoring framework and annual reporting, and adds $10 million per year (from the Treasury) to staff and run the Unit. If the Unit finds intentional misuse by a subrecipient, the Secretary must notify the State and require the State to spend an amount equal to the misused funds to provide cash assistance to families with income below 100% of the federal poverty line; the bill also requires a notice of proposed rulemaking within two years and sets a specified delayed effective date.

Key Points

• Creates a TANF Program Integrity Unit within ACF to monitor intentional misuse of TANF subrecipient funds.
• Directs HHS to develop a subrecipient monitoring framework and allows supplemental State reporting and plan format requirements.
• Adds $10 million per year (from the Treasury) for staffing and operations of the new Unit.
• If intentional misuse by a subrecipient is found, HHS must notify the State and require the State to spend an amount equal to the misused funds on cash assistance for families under 100% of the federal poverty line.
• Requires a notice of proposed rulemaking within two years to implement the changes.
• Affirms HHS monitoring does not replace existing single State audit authority.
• Sets a delayed effective date tied to the fifth calendar quarter after enactment or the start of the next federal fiscal year, whichever is later.
• Requires an annual report to Congress on the Unit's activities.

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