I 
119TH CONGRESS 
1ST SESSION H. R. 2108 
To prevent and address intentional misuse of subrecipient TANF funds. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 14, 2025 
Mr. DAVIS of Illinois (for himself, Ms. CHU, Mr. EVANS of Pennsylvania, Mr. 
GOMEZ, Ms. MOORE of Wisconsin, and Mr. THOMPSON of Mississippi) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To prevent and address intentional misuse of subrecipient 
TANF funds. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘TANF State Expendi-
ture Integrity Act of 2025’’. 
SEC. 2. AUTHORITY TO PREVENT AND ADDRESS INTEN-
TIONAL MISUSE OF SUBRECIPIENT FUNDS 
UNDER THE TANF PROGRAM. 
(a) IN GENERAL.—Section 417 of the Social Security 
Act (42 U.S.C. 617) is amended— 
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(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘No’’; and 
(2) by adding at the end the following: 
‘‘(b) AUTHORITY TO PREVENT INTENTIONAL MIS-
USE OF SUBRECIPIENT FUNDS.— 
‘‘(1) SUBRECIPIENT MONITORING.— 
‘‘(A) IN GENERAL.—The Secretary— 
‘‘(i) shall develop a framework for the 
monitoring of subrecipient use of funds 
provided under section 403(a)(1) of this 
Act, for the purpose of identifying inten-
tional misuse, to supplement single State 
audits conducted under chapter 75 of title 
31, United States Code; 
‘‘(ii) may establish State plan require-
ments or formats relating to clause (i); and 
‘‘(iii) may require States to report to 
the Secretary such information to supple-
ment the report provided under section 
411(a) as the Secretary determines is nec-
essary to enable the Secretary to comply 
with clauses (i) and (ii) of this subpara-
graph. 
‘‘(B) NO EFFECT ON SINGLE STATE AUDIT 
AUTHORITY.—Clause (i) of this subparagraph 
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shall not be interpreted to limit the authority of 
the Secretary to conduct single State audits 
under chapter 75 of title 31, United States 
Code. 
‘‘(2) PROGRAM
INTEGRITY
UNIT
AUTHORIZA-
TION AND FUNDING.— 
‘‘(A) TANF PROGRAM INTEGRITY UNIT.— 
The Secretary shall create a TANF Program 
Integrity Unit at the Administration for Chil-
dren & Families, which shall conduct the moni-
toring described in paragraph (1)(A)(i). 
‘‘(B) APPROPRIATION.—Out of any money 
in the Treasury not otherwise appropriated, the 
amount made available in section 403(a)(1)(C) 
for each fiscal year shall be increased by 
$10,000,000, and the amount of the increase 
shall be available for the staffing and oper-
ations of the TANF Program Integrity Unit 
and related functions. 
‘‘(3) ANNUAL
REPORT
TO
THE
CONGRESS.— 
The Secretary shall submit an annual report to the 
Congress on the activities undertaken under para-
graph (2)(A) in the fiscal year covered by the re-
port.’’. 
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(b) REMEDIES.—Section 409(a)(1)(B) of such Act 
(42 U.S.C. 609(a)(1)(B)) is amended— 
(1) by striking ‘‘(B) ENHANCED PENALTY FOR 
INTENTIONAL
VIOLATIONS.—If’’ and inserting the 
following: 
‘‘(B) ENHANCED
PENALTY
FOR
INTEN-
TIONAL VIOLATIONS.— 
‘‘(i) IN GENERAL.—If’’; and 
(2) by adding at the end the following: 
‘‘(ii) ADDITIONAL REMEDIES.—If the 
Secretary finds, as a result of subrecipient 
monitoring under section 417(b)(1) of this 
Act, that an amount has been intentionally 
misused in violation of this part, then the 
Secretary shall— 
‘‘(I) notify the State involved of 
the finding; and 
‘‘(II) in addition to any penalty 
imposed under clause (i), require the 
State to expend, in addition to any 
other amount required to be expended 
under the State program funded 
under this part, an amount equal to 
the amount so misused, for the provi-
sion of cash assistance directly to 
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families with an income below 100 
percent of the poverty line (as defined 
in section 673(2) of the Omnibus 
Budget Reconciliation Act of 1981, 
including any revision required by 
such section, applicable to a family of 
the size involved).’’. 
(c) DEADLINE
FOR PUBLICATION
OF NOTICE
OF 
RULEMAKING.—Within 2 years after the date of the en-
actment of this Act, the Secretary of Health and Human 
Services shall publish a notice of rulemaking to implement 
the amendments made by this section. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the later of— 
(1) the 1st day of the 5th calendar quarter that 
begins after the date of the enactment of this Act; 
or 
(2) the 1st day of the 1st Federal fiscal year 
that begins after such date of enactment. 
Æ 
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