Transparency and Accountability of Failed Exchanges Act This bill amends the Patient Protection and Affordable Care Act (PPACA) to require the Department of Health and Human Services, for certain states awarded a grant to establish a health insurance exchange, to report on how awarded amounts were used and rescind unobligated amounts. This applies to any state that terminates operation of its exchange or transfers operation to another entity. Such a state must provide to the General Services Administration any property acquired through the grant and refer matters involving fraud, waste, and abuse of funds issued pursuant to PPACA to the Department of Justice. Funds rescinded must be retained for federal budget deficit reduction.