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Congress tackles rampant fraud in welfare program reforms

September 24, 2024 | Ways and Means: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal


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Congress tackles rampant fraud in welfare program reforms
In a recent government committee meeting, lawmakers discussed significant reforms to the Temporary Assistance for Needy Families (TANF) program, highlighting rampant misuse of funds and the need for stronger oversight. Under the current House Republican majority, the committee has prioritized helping Americans build stable lives through work, emphasizing the importance of reforming welfare programs.

Chairman of the committee noted that for the first time in two decades, Congress has acted to close loopholes in TANF and strengthen work requirements. However, he pointed out that a staggering 77% of TANF spending is on non-assistance, which has been plagued by waste, fraud, and abuse. Notable examples included $77 million in misused TANF funds in Mississippi, leading to criminal convictions, and $1 million spent in Michigan on college aid for families earning up to $250,000.

The chairman criticized the lack of federal regulations governing TANF non-assistance funds, which has allowed states to misuse taxpayer dollars without accountability. He emphasized that only 8.1% of TANF funds were spent on work-related activities in 2022, and states are sitting on $1 billion in unspent reserves. The absence of a reported rate of improper payments by the Department of Health and Human Services further complicates the issue.

Bipartisan concerns were raised regarding the ongoing fraud within the program, with both Republicans and Democrats expressing a desire for reform. The chairman acknowledged the potential for collaboration, noting that some proposals from the Biden administration align with Republican ideas, such as targeting TANF to families earning less than 200% of the federal poverty line.

Ranking member Neal highlighted the critical role TANF plays in supporting families, noting that less than one in four poor families receive assistance. He criticized the current legislative focus, which he argued has favored the wealthy over vulnerable families, and called for a return to oversight and accountability in TANF spending.

The meeting featured testimonies from witnesses, including former NFL player Brett Favre, who shared insights on the need for stronger federal safeguards to prevent misuse of TANF funds. The committee aims to reclaim welfare dollars and restore the program's integrity, ensuring it effectively supports individuals in need and fosters pathways to employment.

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