U.S. Rep. Darin LaHood (R-IL) and a U.S. House Ways and Means Committee colleague called on Congress’ watchdog to conduct an in-depth investigation of spending in the Temporary Assistance for Needy Families (TANF) program, which provides billions in federal funds to fight poverty.
“Recently, concerns have emerged that TANF non-assistance funds, which make up about 78 percent of combined federal and state spending, lack guardrails and are not focused on helping people transition from welfare to work,” wrote Rep. LaHood and U.S. Rep. Jason Smith (R-MO) in a Sept. 20 letter sent to GAO Comptroller General Gene Dodaro. Rep. LaHood is chairman of the U.S. House Ways and Means Subcommittee on Work and Welfare, while Rep. Smith is chairman of the full committee.
During a July 12 hearing held by the Ways and Means Subcommittee on Work and Welfare, entitled “Where is all the Welfare Money Going? Reclaiming TANF Non-Assistance Dollars to Lift Americans Out of Poverty,” members heard from witnesses about problems in current law that may allow for the diversion of funds away from TANF’s core purposes and creates an environment ripe for waste, fraud, and abuse, according to their letter.
“The committee’s concerns are exemplified by headlines in Mississippi,” wrote Rep. LaHood and his colleague. “Mississippi’s State Auditor, Shad White, has flagged at least $77 million in misused funds from the state’s TANF program from 2017 to 2020, resulting in charges against multiple state officials.
“We are concerned that the Mississippi case is emblematic of a systemic problem,” they wrote.
Rep. LaHood and Rep. Smith requested that the GAO “look at all issues it deems relevant and appropriate to this overall subject,” with a focus on four areas: state budgeting and expenditure reporting practices; populations served and performance metrics; federal and state audits; and transfers and direct spending, according to their letter.
“We are happy to provide additional details regarding our interest in how states are spending taxpayer dollars in the TANF program,” the members wrote.