Preventing Waste, Fraud, and Abuse in TANF Act

This Act may be cited as the Preventing Waste, Fraud, and Abuse in TANF Act.
Section 404 of the Social Security Act (42 U.S.C. 604) is amended by adding at the end the following:
The Payment Integrity Information Act of 2019 shall apply to a State with respect to the State program funded under this part in the same manner in which such Act applies to a Federal agency.
Within 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to the Congress a written report that contains a plan to reduce or eliminate improper payments made by States under part A of title IV of the Social Security Act within 10 years.
Section 404 of the Social Security Act (42 U.S.C. 604) is further amended by adding at the end the following:
A State to which a grant is made under section 403(a)(1) shall use the grant only to provide assistance or services to a family whose income is less than twice the poverty guidelines updated periodically in the Federal Register under section 673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)).
Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended to read as follows:
Except as provided in paragraph (2), a State to which funds are paid, after the effective date of this subsection, under section 403(a)(1) for a fiscal year shall obligate the funds not later than the end of the succeeding fiscal year, and shall expend the funds not later than the end of the 2nd succeeding fiscal year.
Notwithstanding paragraph (1) of this subsection, a State to which funds are paid under section 403(a)(1), after the effective date of this subsection, for a fiscal year may reserve not more than 15 percent of the funds for future use in the State program funded under this part, subject to subparagraph (B) of this paragraph.
The total amount held in reserve by a State under subparagraph (A) of this paragraph shall not exceed an amount equal to 50 percent of the total amount paid to the State under section 403(a)(1) for the then preceding fiscal year.
A State that intends to reserve funds under subparagraph (A) shall notify the Secretary of the intention not later than the end of the period in which the funds are available for obligation without regard to subparagraph (A) of this paragraph.
Section 404 of the Social Security Act (42 U.S.C. 604) is further amended by adding at the end the following:
A State shall use Federal funds received under this part only to supplement funds that, in the absence of the Federal funds, would be made available from State and local sources for programs assisted under this part, and not to supplant the funds.
Section 402(a) of such Act (42 U.S.C. 602(a)) is amended by adding at the end the following:
A certification by the chief executive officer of the State that the funds provided to the State under this part will not be used to supplant State or non-Federal funds for services and activities that promote the purposes of this part.
The amendments made by this Act shall take effect on October 1, 2027.