DHHS explains TANF transfers and a $199M rural health transformation rollout
March 18, 2026 | 2026 Legislature ND, North Dakota
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Donna Auckland, chief financial officer for the Department of Health and Human Services, gave a quarter‑by‑quarter report on salaries and FTEs and summarized the department’s use of TANF funds and the new Rural Health Transformation Program.
Auckland said the TANF block grant award has not meaningfully changed since 1996 (about $26,312,690 annually) and that federal rules limit how TANF dollars may be used. She told the committee that the department moved up to 30% of TANF funds into child care (the CCAP program) to avoid sending money back to the federal government and to reduce childcare wait lists. "It is available 30% of this grant is available," she said, noting the department must comply with CCAP quality earmarks when it transfers funds.
Michelle Gee, director of economic assistance, explained steps taken since 2021 to modernize TANF administration and said 2023 changes (Senate Bill 2181) removed the benefit cap and raised income eligibility; those reforms were intended to increase program utilization. "We introduced Senate Bill 2,181, which eliminated the benefit cap within the program," she told the committee.
Pat, the Rural Health Transformation Program lead, described the CMS‑approved grant framework and outreach plans. Pat said RHTP is prioritizing critical access hospitals, workforce retention, and demonstration projects across four rural regions; the program expects to obligate approximately $199 million before September and to liquidate many of those obligations in the following fiscal year. "We will obligate 199,000,000 before September," Pat said, noting urgent timelines and a requirement to spend within CMS liquidation windows.
Committee members pressed for more granular breakdowns of TANF transfers and asked DHHS to provide detailed spreadsheets showing how block grant dollars were spent in each category; Auckland agreed to email the committee that information.
The committee did not adopt new policy at the meeting; DHHS staff said they would follow up with requested expenditure tables and grant application schedules.
Auckland said the TANF block grant award has not meaningfully changed since 1996 (about $26,312,690 annually) and that federal rules limit how TANF dollars may be used. She told the committee that the department moved up to 30% of TANF funds into child care (the CCAP program) to avoid sending money back to the federal government and to reduce childcare wait lists. "It is available 30% of this grant is available," she said, noting the department must comply with CCAP quality earmarks when it transfers funds.
Michelle Gee, director of economic assistance, explained steps taken since 2021 to modernize TANF administration and said 2023 changes (Senate Bill 2181) removed the benefit cap and raised income eligibility; those reforms were intended to increase program utilization. "We introduced Senate Bill 2,181, which eliminated the benefit cap within the program," she told the committee.
Pat, the Rural Health Transformation Program lead, described the CMS‑approved grant framework and outreach plans. Pat said RHTP is prioritizing critical access hospitals, workforce retention, and demonstration projects across four rural regions; the program expects to obligate approximately $199 million before September and to liquidate many of those obligations in the following fiscal year. "We will obligate 199,000,000 before September," Pat said, noting urgent timelines and a requirement to spend within CMS liquidation windows.
Committee members pressed for more granular breakdowns of TANF transfers and asked DHHS to provide detailed spreadsheets showing how block grant dollars were spent in each category; Auckland agreed to email the committee that information.
The committee did not adopt new policy at the meeting; DHHS staff said they would follow up with requested expenditure tables and grant application schedules.
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