TANF State Expenditure Integrity Act of 2025

This bill aims to stop intentional misuse of federal TANF funds by groups that receive money from states. It tells the U.S. Department of Health and Human Services to set up a new monitoring system for subrecipients, on top of regular state audits, to spot misuse. It also creates a TANF Program Integrity Unit at HHS’s Administration for Children & Families, funded with an extra $10 million each year, and requires an annual report to Congress on what the unit finds .

If intentional misuse is found, the state must put in the same amount of money that was misused, on top of any other penalties, and that money must go straight to cash assistance for families with incomes below the poverty line. HHS must propose rules within two years. The changes take effect later—either on the first day of the fifth calendar quarter after it becomes law or on the first day of the next federal fiscal year, whichever is later.

• Who is affected: States and organizations that receive TANF funds from states; low-income families who receive TANF cash assistance .
• What changes: New federal monitoring of subrecipients; a new Program Integrity Unit with $10 million per year; stronger penalties that require states to replace misused funds with direct cash aid to poor families .
• When: HHS must start rulemaking within two years; the law’s changes start on the later of the first day of the fifth calendar quarter after enactment or the start of the next federal fiscal year.