U.S. Rep. Kristi Noem (R-SD) introduced the Temporary Assistance for Needy Families (TANF) Accountability and Integrity Improvement Act, or HR 2959, this week to fight poverty and encourage financial independence.
The bill is designed to improve TANF programs. Noem’s legislation is one piece of an overall poverty-reduction package that was recently introduced.
States that implement TANF must guarantee that 50 percent of those who are aided also participate in work-related activities, such as working, searching for a job or training for a career. If a state spends more on the program than is required by the federal government, the threshold of 50 percent will be decreased, even down to zero in extreme instances.
Some states count third-party spending as state spending to drive their spending on the program to artificially high levels. As a result, those states don’t need as many TANF recipients to be engaged in work-related activities to continue receiving full federal funding.
HR 2959 would solve this problem by no longer allowing third-party spending to be counted as state spending. This requires states to require more adults to engage in work-related activities before receiving federal benefits.
“Any program aimed at ending poverty must fundamentally expand opportunity,” Noem said. “Unfortunately, loopholes within TANF have diluted the program’s integrity and its effectiveness in helping struggling families move up and out of poverty. By bringing genuine accountability back into the TANF program through H.R.2959, I’m hopeful we can improve outcomes and ensure more families achieve financial independence.
“We need to ensure other states follow South Dakota’s example,” Noem said. “By continuing to engage participants in work activities at the level intended, the state has upheld the integrity of the program and ensured the support we provide through TANF is support that really helps struggling families.”