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Paulsen Introduces Bill To Close 'Strip Club Loophole'

 

remarks for immediate release: December 15th, 2011

 

Representative Erik Paulsen (R-MN)

H.R. 3659, Welfare Integrity and Data Improvement Act

December 15, 2011

(remarks as prepared for delivery)

I rise today in support of H.R. 3659, legislation to extend Temporary Assistance for Needy Families and related programs through the end of this fiscal year, as well as to ensure that these funds are spent appropriately.

Before describing this legislation in greater detail, I note these same provisions were already approved by the House as part of H.R. 3630, the Middle Class Tax Relief and Job Creation Act, on Tuesday this week.  But given uncertainty about that legislation, it makes sense to ensure that the TANF program continues to assist families past December 31, when its current authorization expires.  That’s the first and most important thing this bill would do.

The TANF program has been generally successful at reducing welfare dependence and encouraging work. This success is partly evidenced by the fact that, since it began in 1996, TANF caseloads have fallen by 56 percent through June of this year.

A key reason why that happened is because TANF is designed to promote and support work.  Unfortunately, it is one of the only anti-poverty programs that actually does so, focusing on helping people move from government checks to paychecks.  Especially given that focus and the fact that this program helps so many single parents with children, we need to continue TANF so low-income parents have the dignity of working and supporting their family.

But we can’t stop there.

Extending TANF will also provide us the opportunity to develop longer-term solutions to some of the problems revealed in a subcommittee hearing earlier this year, such as making sure that work requirements apply in all the cases they should.  In discussing this issue with Subcommittee Chairman Geoff Davis, I know that remains a key focus of the Human Resources Subcommittee’s agenda in the coming year.

Aside from extending TANF and related programs, this bill contains two important and bipartisan program integrity provisions.

First, it requires that states apply specific data standards to the TANF information they use when administering benefits and reporting data to the Federal government. This will ensure that States have reliable data for use in matching within TANF and across other programs to ensure the right people are receiving the right benefits.  Unfortunately, today that is not always the case.  The absence of such data standards undermines program integrity, and results in the waste of taxpayer funds.  That needs to end. 

This data provision is identical to provisions affecting child welfare programs signed into law by the President in September as part of the Child and Family Services Improvement and Innovation Act.  And I know Subcommittee Chairman Davis and the gentleman from Texas, my colleague Lloyd Doggett, have worked together throughout this year on this effort.

The second program integrity provision closes what some have dubbed the “strip club loophole.”  This loophole currently allows individuals to access welfare benefits at ATMs in strip clubs, liquor stores, and casinos. This provision insists that all States take steps to end this abusive practice, which has been highlighted in news stories across the country. 

Some states have already implemented policies to close this loophole, ensuring welfare benefits are spent to support children and families.  This bill ensures all states take action to close this loophole.  I note that this policy is the same as that introduced by Senators Hatch and Baucus, the Ranking Member and Chairman, respectively, of the Senate Finance Committee, so it has strong support in the other body as well.

Importantly, by continuing funding for TANF and related programs at their current levels, this bill does not add a penny to the deficit.

Again, this legislation continues TANF and related programs for nine months, while making needed changes to improve program integrity.  More needs to be done to further improve TANF, and especially how it helps parents go to work.  This legislation will allow that process of reform to continue next year, while ensuring that important TANF benefits remain available beyond their current December 31 expiration.

I want to thank Representative Geoff Davis, the Chairman of the Ways and Means Subcommittee on Human Resources, for his work on this issue, as well as Dr. Boustany and Mr. Schock for their efforts and for co-sponsoring this important measure with me today.

I urge all my colleagues to support it, and reserve the balance of my time.

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