Administration for Children and Families (ACF) - Temporary Assistance for Needy Families

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Program level Payment Integrity results

Sponsoring agency: Department of Health and Human Services

View on Federal Program Inventory

PROGRAM METRICS

Did not report

in FY 2022

PROGRAM METRICS

Did not report

in FY 2023

PROGRAM METRICS

Did not report

in FY 2024

PROGRAM METRICS

Did not report

in FY 2025

Payment Integrity results

Unknown Payment Details

Evaluation of corrective actions

Future payment integrity outlook

Additional programmatic information

The Department of Health and Human Services (HHS) does not have the authority to require states participation in a Temporary Assistance for Needy Families (TANF) error rate measurement. Despite limitations, HHS uses a multi-faceted approach to improving TANF program integrity and reducing the likelihood of improper payments, including performing regular improper payment risk assessments (as recently as FY22). For example, HHS recommended strategies to states to minimize initial errors and to identify and correct existing errors. These strategies included:

- training staff to solicit accurate and complete information,
- using integrated databases from multiple assistance programs, and
- performing quality control checks.

Since TANF is a state-administered program, mitigation strategies and corrective actions to reduce improper payments are implemented at the state level. States have reported using various data systems such as the Master Beneficiary Record Database, the Income Eligibility Verification System, the Public Assistance Reporting Information System, and the National Directory of New Hires to assist in payment integrity efforts.

Additional information

$0 M

Unknown Payment Details

Evaluation of corrective actions

Future payment integrity outlook

Additional programmatic information

Temporary Assistance for Needy Families is a $16.5 billion block grant program that fosters family economic security and stability. Temporary Assistance for Needy Families funds a wide range of services that address the program’s four broad purposes, which are to:

-Provide assistance to needy families so that children can be cared for in their own homes;
-Reduce the dependency of needy parents by promoting job preparation, work and marriage;
-Prevent and reduce the incidence of out-of-wedlock pregnancies; and
-Encourage the formation and maintenance of two-parent families.

Temporary Assistance for Needy Families' broad use of funds policy, established under section 401 of the Social Security Act ensures states have the flexibility to be innovative and intentional in designing and administering programs that are intended to move families from poverty to self-sufficiency. The flexibility within the Social Security Act allows states to design programming specific to the unique needs of the children and families within their state. HHS remains committed to ensuring all funds are used in accordance with the statute, as authorized by Congress, however, statutory limitations preclude HHS from collecting the required information needed to develop a Temporary Assistance for Needy Families improper payment measurement or corrective action plans.
Section 411 of the Social Security Act lists the exact data elements that HHS can collect from Temporary Assistance for Needy Families agencies and therefore limits the agency’s ability to measure and oversee payment integrity. Under section 417 of the Social Security Act, HHS cannot collect data elements other than those listed.

Despite these limitations, HHS is committed to ensuring all Temporary Assistance for Needy Families funds are expended in accordance with federal requirements, and that fiscal and programmatic aspects of administering the program are strengthened. HHS is exploring strategies to use data reporting and technical assistance to monitor and support Temporary Assistance for Needy Families agencies in this effort. For example, HHS proposed new statutory authority, included in the FY 2024 President’s Budget request, that would allow Temporary Assistance for Needy Families to collect information from states needed to calculate and report an improper payment estimate, identify root causes of improper payments, and develop and monitor corrective actions. States also utilize data sources such as the Public Assistance Reporting Information System, the National Directory of New Hires, and the Income and Eligibility Verification System to reduce improper payments in their programs.

Additional information

The HHS Temporary Assistance for Needy Families program is in Phase 2 but is not reporting an improper payment and unknown payment estimate for the current reporting year. Statutory limitations preclude HHS from collecting the required information needed to develop a Temporary Assistance for Needy Families improper payment measurement or corrective action plans. Specifically, section 411 of the Social Security Act lists the exact data elements that HHS can collect from Temporary Assistance for Needy Families agencies. Data on case and payment accuracy is not included under this section. Further, Section 417 of the Social Security Act, provides that HHS may only regulate the conduct of states where Congress has given ACF the express authority. Until the current statutory language is amended to permit the development and administration of a national error rate, HHS is unable to provide the fiscal year that the program is expected to be able to report an estimate.

Unknown Payment Details

Evaluation of corrective actions

Future payment integrity outlook

Additional programmatic information

Additional information

The following information provides context on the statutory limits that prevent HHS from calculating and reporting an improper or unknown payment error rate for the Temporary Assistance for Needy Families (TANF) program, as well as HHS’ efforts to strengthen payment integrity.
TANF is a $16.5 billion block grant program that promotes family economic security and stability. It funds services that support four broad purposes:
• Assisting needy families so children can be cared for in their own homes;
• Reducing dependency by promoting job preparation, work, and marriage;
• Preventing and reducing out-of-wedlock pregnancies; and
• Encouraging the formation and maintenance of two-parent families.
Established under section 401 of the Social Security Act, TANF’s broad use-of-funds policy gives states flexibility to design programs tailored to their populations’ needs. However, sections 411 and 417 of the Act limit the data HHS can collect, excluding information needed to calculate an improper or unknown payment error rate.
Despite these limitations, HHS is committed to ensuring TANF funds are used as authorized by Congress and to strengthening fiscal and program integrity. HHS continues to use data reporting and technical assistance to support states. In addition, HHS encourages states to leverage existing data sources, such as the Public Assistance Reporting Information System, the National Directory of New Hires, and the Income and Eligibility Verification System, to help reduce improper payments.

The HHS Temporary Assistance for Needy Families (TANF) program is in Phase 2 but cannot report an improper or unknown payment estimate for the current year. Statutory limits prevent HHS from collecting the necessary data, as section 411 of the Social Security Act only permits specified data elements that exclude case and payment accuracy. In addition, section 417 restricts HHS from regulating states without express congressional authority. Until the law is amended to allow a national error rate, HHS cannot project when TANF will be able to provide such estimates.