Today, Ways and Means Work & Welfare Subcommittee Chairman Darin LaHood (IL-16) delivered the following remarks at a Work & Welfare subcommittee hearing on Government Accountability Office (GAO) reports on the need for reform, better state accountability, and fraud protection in the Temporary Assistance for Needy Families (TANF) program.
As prepared for delivery.
“I want to thank everyone for joining us for today’s hearing.
“My name is Darin LaHood, and I represent Illinois’ 16th District, covering much of the central and northwestern parts of the state.
“Today we want to highlight the results of a comprehensive investigation by the Government Accountability Office into state use of Temporary Assistance for Needy Families funds.
“This is the 4th TANF hearing we’ve held and continues the Committee’s ongoing oversight work to strengthen TANF to lift more Americans out of poverty, while maintaining our obligation to protect the taxpayers who fund the program.
“I want to thank our witnesses for their time and commitment to helping us further understand this important issue and what is at stake.
“In 2023, Chairman Jason Smith and I requested GAO to conduct an investigation into the vulnerabilities of TANF, focusing on non-assistance. Today, we will learn more about the findings from five GAO reports published in response to the Committee’s request.
“Non-assistance constitutes the majority of the TANF block grant– nearly 78 percent of combined federal and state spending. This is spending that is not for basic assistance or direct checks to welfare recipients.
“Concerns have emerged about how states are using non-assistance funds. Problems in current law open the door for diversion of funds away from the core purpose of moving individuals from welfare to work. This includes using TANF to supplant state spending and fill budget gaps.
“TANF also lacks basic financial safeguards creating an environment ripe for waste, fraud, and abuse. Unlike most federal programs, the TANF statute does not put obligation deadlines on states for spending funds. As a result, many states have built up large reserves, instead of spending TANF on the families that need it.
“In short, there is widespread consensus that a lack of accountability in TANF is undermining efforts to help vulnerable families.
“As we will hear today, GAO’s review found multiple areas in need of improvement including:
- Inconsistent state budgeting and expenditure reporting practices;
- A lack of transparent data on who is being served and the quality of services being paid for with federal tax dollars;
- Repeated state audit findings that have gone unaddressed over multiple years;
- An absence of meaningful performance metrics; and
- Increasing state use of TANF for child welfare with few accountability measures.
“TANF was created nearly 30 years ago as part of the historic Republican-led welfare reforms of 1996. Thanks to work requirements and time limits, basic assistance caseloads have declined, allowing states to shift TANF spending to non-assistance.
“The problem is that TANF has not been reauthorized since 2005, but continues to receive funding on autopilot. Congress must re-visit the program – not only to modernize TANF as part of a comprehensive reauthorization – but to make necessary reforms to recognize the shift to non-assistance spending to improve accountability.
“My belief is that we need to reclaim TANF for work, do a better job of targeting funding towards the most vulnerable families, and restore the program to its original roots. I know many of my colleagues on this subcommittee share these views and have introduced legislation to make some of these changes.
“On its current path, TANF is failing beneficiaries who need economic security, and it’s also failing taxpayers whose money should be spent intentionally and strategically to support work.
“By modernizing the program, while ensuring that it continues to serve those who rely on it, we can reduce dependency and empower Americans to uplift themselves.
“I’m honored to have our guests here today and look forward to your testimony.”