May 20, 2026
The Honorable Mike Carey
1433 Longworth House Office Building
Washington, DC 20515
Dear Representative Carey,
On behalf of National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, I write to express our strong support for H.R. 8872, the Preventing Waste, Fraud and Abuse in TANF Act. This legislation contains several provisions that will enhance federal oversight of the Temporary Assistance for Needy Families (TANF) program. In particular, this bill protects taxpayers by mandating the measurement and reporting of improper payments in TANF funds administered by states. Along with other practical reforms, this legislation safeguards tax dollars from being squandered and strengthens the integrity of a key welfare program families across the country depend on.
Improper payments in federal programs have been a persistent problem costing taxpayers hundreds of billions of dollars every year. According to the Office of Management and Budget, in fiscal year 2023 alone, the federal government spent over $230 billion on improper payments. That’s well over $4 billion in taxpayer funds every single week. With interest on the national debt already consuming about 13% of the entire U.S. federal budget, allowing billions in tax dollars to routinely go to waste through erroneous payments is simply unconscionable.
Congress passed the Improper Payments Information Act of 2002 in an effort to understand the scale of the problem. The law requires federal agencies to estimate the amount of money lost every year to improper payments, identify the root causes of those payment errors, and outline the steps being taken to reduce them. This is exactly the kind of framework needed to promote accountability in the federal bureaucracy. However, because TANF operates as a federal block grant, states directly administer these funds themselves. As a result, these funds are not subject to the same improper payment measurement and reporting requirements as other federal programs.
Government watchdogs have repeatedly raised the alarm about the need to plug gaps in improper payments oversight. In line with previous recommendations made by the Government Accountability Office, H.R. 8872 grants the Department of Health and Human Services (HHS) the statutory authority to measure improper payments in TANF. Furthermore, the legislation also directs HHS to develop a plan to eliminate these payment errors and instances of fraud within the next decade.
This legislation goes further than simply cracking down on payment errors. Commonsense guardrails ensure TANF funds reach families in need rather than being diverted through budgetary gimmicks or left sitting unused for years. The bill’s clearly defined eligibility cap at 200% of the federal poverty line addresses loopholes states can use to divert funds to unrelated programs. Furthermore, this bill prevents states from using TANF as a federal slush fund by prohibiting federal dollars from supplanting their own spending. Finally, the bill ensures resources are deployed efficiently by limiting the accumulation of unspent reserves.
Scandals involving fraudulent government payments and the widespread misuse of taxpayer dollars have made headlines around the country in recent months. Sensible fixes like this legislation are exactly the kind of practical, good-government reforms needed to get the nation’s fiscal affairs in order and restore the public’s trust in government. NTU is proud to support this legislation and looks forward to working with you to help it become law.
Sincerely,
Alex Ciccone
Policy and Government Affairs Manager
National Taxpayers Union