Cape News

Oversight of the United States welfare system, specifically the Temporary Assistance for Needy Families (TANF) program, is under scrutiny following two new reports from the Government Accountability Office (GAO). The reports highlight significant shortcomings in the Department of Health and Human Services' (HHS) oversight capabilities, raising concerns about potential waste, fraud, and abuse.

The GAO's analysis was requested by Ways and Means Committee Chairman Jason Smith and Work and Welfare Subcommittee Chairman Darin LaHood. The reports are part of an ongoing investigation into how TANF funds are managed at the state level. According to GAO findings, there is a need for HHS to strengthen its fraud risk management efforts and improve coordination with states to enhance accountability.

Chairman Jason Smith expressed concern over these findings: "GAO’s findings reveal a clear breakdown in HHS’s execution of its oversight responsibilities under President Biden when it comes to curbing the misuse and abuse of TANF non-assistance funding." He emphasized that with 78 percent of TANF spending classified as non-assistance, inadequate oversight poses a threat not only to taxpayers but also risks undermining services crucial for families in poverty.

Subcommittee Chairman Darin LaHood supported the release of these reports, stating: "As we continue to consider ways to strengthen the TANF program, I am pleased that GAO is releasing these reports and providing additional data to include in the conversation."

The first report titled “Enhanced Reporting Could Improve HHS Oversight of State Spending” found deficiencies such as incomplete narrative explanations from seven out of 31 states regarding their fiscal year 2022 spending. Additionally, unspent TANF funds have reportedly increased significantly between 2015 and 2022. The report suggests Congress should consider granting HHS more authority to collect detailed expenditure information.

The second report on “Additional Actions Needed to Strengthen Fraud Risk Management” identified issues with HHS's inaugural fraud risk assessment conducted in July 2024. This assessment revealed 21 types of fraud risks across nine categories but noted that current practices do not align fully with leading standards for managing such risks. Recommendations include developing clearer guidelines for regular assessments and involving relevant stakeholders in this process.

These findings prompt further discussions on necessary reforms within TANF administration to ensure effective use of funds intended for aiding needy families while maintaining stringent checks against misuse.