West Virginia Diverts $8M in TANF Funds to Broken PATH Database System
West Virginia's Department of Human Services is using nearly $8 million in federal Temporary Assistance for Needy Families funding to maintain its troubled PATH system, the state's online management platform for Medicaid, foster care, and welfare programs. The $400 million system, launched under the previous administration, continues experiencing regular outages and data processing failures despite ongoing investment. Governor Morrisey cited TANF funding shortfalls when abruptly closing school clothing allowance applications in July after seven days, raising questions from state legislators about whether PATH maintenance costs contributed to the program's budget deficit. State lawmakers allocated an additional $7.4 million for PATH operations in the FY 2027 budget, with the Department of Human Services unable to specify total expected annual spending on the system.
TANF funding diverted to IT infrastructure reduces resources for direct assistance programs while system failures directly impair Medicaid eligibility determination and enrollment operations statewide.
Managed Care · Finance
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