Temporary Assistance for Needy Families: Enhanced Reporting Could Improve HHS Oversight of State Spending
Fast Facts
The Temporary Assistance for Needy Families program gives states substantial flexibility over how they will meet program goals to help families. For example, TANF can provide cash to eligible families as well as "non-assistance" services such as job training.
We reviewed state spending trends, Health and Human Services' oversight of the program, and more.
Spending on non-assistance services increased from FY 2015-22
Unspent TANF funds more than doubled to $9 billion from FY 2015-22
Explanations of how funds were spent were missing or incomplete for 7 of 31 states required to submit them
We recommended ways to strengthen program oversight.
Highlights
What GAO Found
Nationwide, state spending on Temporary Assistance for Needy Families (TANF) “non-assistance” services—such as work activities, education, and training activities—increased as a percentage of total TANF spending between fiscal year 2015 and fiscal year 2022 (from 40.8 to 44.2 percent). During that period, “assistance” spending, including cash payments to needy families, decreased as a percentage of total spending (from 27.2 to 25.2 percent). Individual state spending on those categories varied. See figure below for total fiscal year 2022 spending and transfers by TANF category.
Temporary Assistance for Needy Families Funds Spent or Transferred, Fiscal Year 2022
Officials GAO interviewed from selected states said they considered various factors—such as the number of families eligible for cash assistance, legislative priorities, and historical precedent—when making decisions about assistance and non-assistance spending and transfers to other allowable block grants. Selected states attributed increases in unspent funds (from $4 billion in 2015 to $9 billion in 2022, nationwide) to overestimation of program needs and availability of other time-limited federal funds, such as those for COVID-19 relief.
States are required to file various reports on their TANF expenditures with the Department of Health and Human Services (HHS). However, GAO found that:
- In March 2024, seven states (out of 31 whose reported expenditures required narrative explanations) were missing or had incomplete narratives for fiscal year 2022. New control activities to improve the completeness of required reporting would enhance HHS oversight of states' TANF spending.
- States' reporting does not include detailed information on aspects of TANF expenditures—such as information on planned non-assistance spending or on subgrantees that administer TANF-funded programs. This type of information could strengthen oversight, potentially including that of improper payments, and guide future decision-making on TANF. While current law limits what information HHS can collect from states, HHS could identify additional reporting requirements within its existing statutory authority to enhance the completeness of states' reporting. Further, Congress could consider providing HHS statutory authority to collect additional information as appropriate for oversight purposes.
Why GAO Did This Study
Since 1996, the TANF block grant has annually provided $16.5 billion in federal funding to states to help low-income families. In addition, states collectively spend approximately $15 billion of their own funds. States have broad flexibility to use these funds to meet TANF's statutory purposes. There is limited detail reported on state spending of these federal funds.
GAO was asked to review TANF spending. This report addresses, among other things, trends in states' use of TANF funds; selected states' TANF budget decisions; and the extent to which HHS collects expenditure data for oversight purposes. This report is part of a series of reports on TANF to be issued in the coming months.
GAO analyzed HHS TANF expenditure data; reviewed federal laws, HHS regulations and guidance, and TANF reporting; interviewed HHS officials and officials in eight selected states. GAO selected these states to reflect a range of geographic regions and poverty rates.
Recommendations
Congress should consider granting HHS authority to collect additional TANF-related information from states, as appropriate, for oversight purposes. GAO is also making two recommendations, including that HHS (1) ensure states submit complete narrative data in their expenditure reporting and (2) review reporting requirements to enhance the information it collects from states consistent with its statutory authority. HHS agreed with our recommendations and outlined plans to address them.
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should consider granting HHS the authority to collect from states specific additional information needed to enhance its oversight authority, such as planned and actual TANF non-assistance expenditures, beyond what is provided for in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. (Matter for Consideration 1) | As of February 2026, Congress had not enacted relevant legislation. Legislation, that if enacted, could address aspects of this matter includes: H.R. 2108, TANF State Expenditure Integrity Act of 2025, H.R.3156, Jobs and Opportunity with Benefits and Services (JOBS) for Success Act of 2025 and S.1567, Jobs and Opportunity with Benefits and Services (JOBS) for Success Act of 2025. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Health and Human Services | The Secretary of HHS should ensure ACF design control activities to help ensure states are submitting complete narrative data in their expenditure reporting. (Recommendation 1) |
HHS agreed with this recommendation and in June 2025 stated that to enhance its support for states' accurate and timely completion of the ACF-196R TANF financial form data and narratives, it was developing new tools, including: a quality assurance checklist, templates aligned with required narratives categories, and a decision tree for determining appropriate categorization and reporting. In February 2026, HHS shared its TANF ACF-196R Narrative Excellence Resource Toolkit. This toolkit bolsters HHS's efforts to provide state grantees information on: the importance of narratives, common pitfalls to avoid when reporting on the ACF-196R or drafting the required narratives, and tips on completing the form and requirements. While this resource to state grantees will assist with the quality of narratives submitted to HHS, it will not address concerns about HHS's review of whether narratives are provided. As of August 2026, we have requested information from HHS on internal processes and controls that would help it identify if states fail to submit required narrative reports.
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| Department of Health and Human Services | The Secretary of HHS should ensure ACF conducts a review of all TANF reporting requirements and forms and make appropriate changes within its statutory authority to enhance reporting for oversight of TANF funds. (Recommendation 2) |
HHS agreed with this recommendation. In June 2025 HHS stated it intended to begin the formal Paperwork Reduction Act (PRA) renewal process no later than April 1, 2026 to update the current ACF-196R form which expires in January 2027. To prepare for the renewal, HHS told us it planned to consult internally to better understand the legal and programmatic parameters for a substantive revision to the form that could enhance reporting for oversight of TANF funds. In March 2026, HHS began the formal PRA process to update the ACF-196R financial data reporting form. We have requested further information on the process used to determine these proposed changes and officials' views on the improvements to reporting that these changes are intended to provide
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