“This lack of federal protections has created the perfect storm for waste, fraud, and abuse. The victims aren’t just taxpayers, but also the Americans in dire straits who need help. That’s why one of our priorities must be restoring integrity and accountability to TANF.”

As prepared for delivery.

“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.

“We took an important first step to reform TANF direct cash assistance in the Fiscal Responsibility Act. For the first time in two decades, Congress acted to close loopholes states were using and strengthen work requirements. 

“Unfortunately, TANF non-assistance, which makes up 77 percent of the spending in the program, has been undermined by rampant waste, fraud, and abuse – meaning fewer dollars are going to services for those who really need them.

“For example, in the state of Mississippi, $77 million in misused TANF funds led to multiple criminal convictions for embezzlement by state officials and non-profit contractors. But we all know this problem is not limited to Mississippi.

“In Michigan, millions of dollars in TANF funds were spent on college aid for families making up to a quarter of a million dollars to attend primarily private colleges. In California, the state used federal TANF funds to plug holes in their state budget. We could go around the country and identify examples of other states using TANF funds for reasons other than its four core purposes. 

“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. Unlike other federal programs, there are virtually no rules governing how states spend TANF non-assistance funds. 

“There’s no eligibility limit to target TANF to families in need. There’s no requirement to ensure TANF non-assistance is being used to support work, training, and education activities. In fact only 8.1 percent was spent on these activities in 2022. TANF has no spending deadlines, so states are sitting on billions in unspent reserves, reaching $6.4 billion in 2022. 

“How big a problem is it? What is the rate of improper payments? No one knows, because the U.S. Department of Health and Human Services has never reported a rate of improper payment.

“Together, this lack of federal protections has created the perfect storm for waste, fraud, and abuse. The victims aren’t just taxpayers, but also the Americans in dire straits who need help. That’s why one of our priorities must be restoring integrity and accountability to TANF. 

“Republicans and Democrats on this Committee have both expressed concerns about the ongoing fraud and questionable use of funds in this program and introduced legislation. Some of the Democrat policies are not that far from Republican policies, and the Biden-Harris Administration has proposed Republican ideas like reporting improper payments and targeting TANF to families earning less than 200 percent of the federal poverty line. 

“I believe there is room for bipartisanship. But my priority as Chairman is to make sure, in our push for reform, we don’t turn welfare into a mechanism that traps people in poverty or lose the ability to tailor programs to the unique needs of local communities and families. Those are important principles of TANF that made it successful in 1996 and should be a foundation we build on. 

“I want to thank our witnesses for taking the time to be here and sharing their insights.

“In particular, we are honored to be joined by someone from my congressional district, Mr. Matt Underhile in Stoddard County. He is a living example of what can happen when welfare programs help people find full-time employment that supports a family – and the spillover effects that has for building strong communities. I want to thank you for traveling to Washington from God’s country, and I look forward to you sharing your story with us.

“We are also joined by someone whose experience I think can help shed additional light on the need to pursue reforms to states ability to spend TANF, Mr. Brett Favre. We look forward to hearing his insights into how weak federal oversight and self-dealing state officials contributed to Mississippi’s case. He saw how embezzlement and mismanagement hurt the people whom welfare is supposed to help. Thank you for coming here and using your name and platform to draw attention to the need for stronger federal safeguards in TANF spending to ensure what happened in Mississippi doesn’t happen again. 

“I am grateful to each and every one of you for coming to share your perspective on how Congress can reform TANF.

“We must reclaim these critical welfare dollars and restore the integrity of this important program to focus on removing barriers to work and building the capacity of individuals to realize their full potential and thrive.”