State auditor testifies before Congress about Mississippi welfare scandal

WASHINGTON, D.C. (WLOX) – State Auditor Shad White spent Wednesday on Capitol Hill testifying about Mississippi’s massive misappropriation of Temporary Assistance for Needy Families (TANF) funds.

White emphasized to lawmakers the need for stronger safeguards to prevent this kind of fraud in the future.

“My hope in testifying today is that the story of what happened in my home state will help ensure that it never happens again elsewhere,” White said.

Mississippi’s welfare scandal came to light in 2019 when the State Auditor’s office received a tip regarding a potential kickback scheme involving the Department of Human Services (DHS).  The Office of the State Auditor’s investigation then revealed tens of millions of dollars had been misspent between 2016 and 2019.

Six people have pleaded guilty in the case so far, including John Davis, the former Executive Director of the Mississippi Department of Human Services.

During the hearing, White proposed reforms to strengthen oversight and accountability. He recommended the federal Department of Health and Human Services:

• Require state agency heads to sign statements under penalty of perjury about the number of people served by welfare,
• Punish state agencies that fail to properly monitor nonprofits receiving welfare grants,
• Report improper spending to Congress,
• Implement stricter eligibility criteria for TANF funds so that only the truly needy are eligible.

The MDHS welfare scandal is the largest public fraud case in Mississippi history.

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