Targeted Federal Funding to Invest in Communities Act This bill supports state, territorial, tribal, and local governments in providing resources to residents, especially those in historically underserved communities, to improve measurable outcomes for health, education, and quality of life. States are eligible for support if they are in the bottom 10 of all 50 states in combined ranking of average life expectancy, infant mortality rate, poverty rate, and percentage of state population with a college degree. Also eligible for support are U.S. territories, tribal governments, and the District of Columbia. A local government in an eligible state may receive direct support if it is in a county with persistent poverty. Recipients shall use the funds to cover only those costs that are necessary expenditures to create or expand activity or programs consistent with the purposes of this bill, were not accounted for in the recipient's budget most recently approved as of enactment of this bill, and are incurred during the five year period beginning on enactment of this bill. The Office of Inspector General of the Department of the Treasury shall conduct monitoring and oversight of the receipt, disbursement, and use of funds.