The Department of Health and Human Services, through its Administration for Children and Families, has announced the reestablishment of a computer matching program involving the Department of Veterans Affairs and state public assistance agencies. Published in the Federal Register on October 22, 2025, this notice details a periodic data exchange designed to help states determine eligibility for key public assistance programs. The program operates under the Public Assistance Reporting Information System, known as PARIS, and is facilitated by ACF Tech with matching conducted by the Treasury Department's Bureau of the Fiscal Service through its Do Not Pay system. This development underscores ongoing efforts to integrate federal data for efficient benefit administration while adhering to privacy protections under the Privacy Act of 1974. By providing states with VA compensation and pension information, the program seeks to prevent overpayments and ensure fair distribution of federal funds, potentially benefiting both taxpayers and recipients, including veterans who may discover alternative VA benefits.
Background and Legal Framework
The matching program traces its roots to longstanding federal requirements for verifying income and eligibility in public assistance programs. Authorized by sections 402(a), 1137, and 1903(r) of the Social Security Act, it mandates that states implement income and eligibility verification systems for programs like Medicaid, Temporary Assistance for Needy Families (TANF), the Supplemental Nutrition Assistance Program (SNAP), and general assistance. These provisions, codified at 42 U.S.C. 602(a), 1320b-7, and 1396b(r), emphasize the need for accurate data to administer benefits funded in part by the federal government.
The Privacy Act of 1974, as amended (5 U.S.C. 552a), governs such data exchanges to protect individuals' records. It requires federal agencies to secure approvals, notify Congress and the Office of Management and Budget, publish notices in the Federal Register, and ensure verification of matches before any adverse actions. This reestablished program complies with these stipulations, building on prior iterations of PARIS, which has facilitated interstate and federal data sharing since the 1990s. For instance, routine use 35 in VA's system of records, 'Compensation, Pension, Education, and Vocational Rehabilitation and Employment Records--VA (58VA21/22/28),' explicitly authorizes disclosures for eligibility verification, as noted in the Federal Register on November 8, 2021 (86 FR 61858).
Key players include the VA as the data source, state public assistance agencies as recipients, ACF Tech as the facilitator, and the Treasury's Do Not Pay system for conducting matches. Robin Collins, ACF's Chief Information Officer and Acting Chief Technology Officer, signed the notice, highlighting the program's role in equitable benefit delivery.
Program Mechanics and Data Involved
Under the program, the VA provides the Do Not Pay system with quarterly files containing benefit data for most compensation and pension recipients. States submit their own files with identifying information, including Social Security Numbers, for public assistance applicants and recipients. The Do Not Pay system then matches these against VA records and returns results to the states.
Matched data includes detailed elements such as VA file numbers, payee types, award statuses, beneficiary details (e.g., names, birth dates, addresses), and financial information like gross amounts, net awards, income sources, and deductions. For example, the results may detail a beneficiary's annual income from wages, Social Security, or military retirement, alongside indicators for aid and attendance or hardship expenses. This granular data allows states to assess whether unreported VA benefits affect eligibility thresholds for programs like Medicaid or SNAP.
The program targets two main categories of individuals: those applying for or receiving public assistance benefits, and VA benefit recipients. By cross-referencing these groups, states can identify overlaps, such as veterans receiving both VA pensions and state aid, ensuring compliance with eligibility rules that often require counting all income sources.
Implications for Public Assistance and Veterans
In the short term, this matching enhances administrative efficiency by automating verification processes that might otherwise rely on manual reporting. States can quickly flag discrepancies, reducing improper payments estimated by the Government Accountability Office to exceed $200 billion annually across federal programs. For recipients, it promotes accuracy, potentially preventing benefit denials due to outdated information.
Longer-term implications involve broader policy debates on data integration. Proponents argue it strengthens program integrity, aligning with initiatives like the Improper Payments Elimination and Recovery Act of 2010, which mandates agencies to minimize errors. From another perspective, privacy advocates may raise concerns about data security and the potential for mismatches leading to wrongful benefit reductions, though the Privacy Act requires verification before adverse actions, as per 5 U.S.C. 552a(p).
For veterans, the program offers an educational angle. States can use matches to inform individuals about VA benefits that might provide better alternatives to public assistance, such as higher pension amounts or specialized services. This dual purpose reflects a balance between fiscal responsibility and support for vulnerable populations, including the estimated 1.3 million veterans receiving VA compensation who may also interact with state programs.
Different stakeholders view the program variably. State agencies appreciate the cost savings and streamlined operations, while federal overseers like HHS emphasize compliance and equity. Critics, including civil liberties groups, might highlight risks of overreach in surveillance, though the notice addresses this by limiting data use to eligibility determinations.
Challenges and Oversight
Implementation challenges include ensuring data accuracy and timely verification. The program's 18-month initial term, from approximately October 2025 to May 2026, allows for evaluation, with a possible one-year renewal if unchanged and compliant. Oversight mechanisms, such as annual reports to agency heads and the Office of Management and Budget under 5 U.S.C. 552a(u)(3)(D), provide accountability.
Public input is invited until November 21, 2025, via comments to ACF Tech, offering a chance for refinements based on feedback from legal experts or affected parties.
In summary, this reestablished matching program represents a targeted effort to align federal and state benefit systems, drawing on established legal frameworks to enhance accuracy and fairness. Potential next steps include monitoring match outcomes for error rates and exploring expansions to other data sources, while ongoing debates will likely focus on balancing efficiency with robust privacy safeguards. Challenges ahead may involve adapting to technological advancements or addressing interstate variations in program rules, ensuring the initiative evolves to meet diverse needs without compromising individual rights.