Cape News

Chairman Smith addressed the issue of waste, fraud, and abuse in the Temporary Assistance for Needy Families (TANF) program during a recent hearing. He emphasized the need for reforms to ensure that funds are used effectively to help those in need.

“Under the House Republican majority, this Committee has been laser-focused on helping Americans in need, and in particular, doing so by helping them build stable, prosperous lives through work. That is the very core of our work to improve our welfare programs, including TANF,” said Smith.

Smith highlighted that Congress took an important step to reform TANF direct cash assistance through the Fiscal Responsibility Act. This act aimed to close loopholes and strengthen work requirements for the first time in two decades.

However, he pointed out that 77 percent of TANF spending goes towards non-assistance, which has been plagued by misuse. “Unfortunately, TANF non-assistance...has been undermined by rampant waste, fraud, and abuse – meaning fewer dollars are going to services for those who really need them,” Smith stated.

Smith cited examples from various states where TANF funds were misused. In Mississippi, $77 million in misused funds led to criminal convictions for embezzlement. In Michigan and California, funds were spent on college aid for wealthy families and plugging state budget holes respectively.

“One of the things that has enabled the misuse of funds is a lack of guardrails that connect taxpayer dollars to people actually in need,” Smith noted. He mentioned that there are virtually no rules governing how states spend TANF non-assistance funds and no eligibility limits targeting families in need.

Smith called attention to the lack of reporting on improper payments by the U.S. Department of Health and Human Services. “No one knows [the rate of improper payments], because the U.S. Department of Health and Human Services has never reported a rate of improper payment,” he said.

Both Republicans and Democrats have expressed concerns about ongoing fraud and questionable use of funds within TANF. Smith acknowledged bipartisan efforts to address these issues: “Republicans and Democrats on this Committee have both expressed concerns about the ongoing fraud...and introduced legislation.”

Smith stressed his priority as Chairman is ensuring reforms do not trap people in poverty or undermine local community needs: “My priority as Chairman is to make sure...we don’t turn welfare into a mechanism that traps people in poverty.”

The hearing included testimonies from witnesses such as Matt Underhile from Stoddard County and Brett Favre. Underhile’s experience with welfare programs was highlighted as an example of success through employment support. Favre provided insights into Mississippi’s case of embezzlement and mismanagement.

“We must reclaim these critical welfare dollars and restore the integrity of this important program,” concluded Smith.