[House Report 115-754]
[From the U.S. Government Publishing Office]
115th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 115-754
======================================================================
JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES FOR SUCCESS ACT
_______
June 13, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Brady of Texas, from the Committee on Ways and Means, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 5861]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 5861) to amend part A of title IV of the Social
Security Act, and for other purposes, having considered the
same, report favorably thereon with an amendment and recommend
that the bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND..........................................14
A. Purpose and Summary................................. 14
B. Background and Need for Legislation................. 14
C. Legislative History................................. 17
II. EXPLANATION OF THE BILL.........................................19
Sections 1, 2, and 3: Short Title, Table of Contents,
and References..................................... 19
Section 4: Re-naming of program........................ 19
Section 5: Helping more Americans enter and remain in
the workforce...................................... 20
Section 6: Expecting universal engagement and case
management......................................... 23
Section 7: Promoting accountability by measuring work
outcomes........................................... 26
Section 8: Targeting funds to truly needy families..... 37
Section 9: Targeting funds to core purposes............ 40
Section 10: Strenghtening program integrity by
measuring improper payments........................ 42
Section 11: Prohibition on State diversion of Federal
funds to replace State spending.................... 43
Section 12: Inclusion of poverty reduction as a core
purpose............................................ 43
Section 13: Welfare for needs not weed................. 44
Section 14: Strengthening accountability through HHS
approval of State plans............................ 45
Section 15: Aligning and improving data reporting...... 48
Section 16: Technical corrections to data exchange
standards to improve program coordination.......... 50
Section 17: Set-aside for economic downturns........... 50
Section 18: Definitions related to use of funds........ 51
Section 19: Elimination of obsolete provisions......... 51
Section 20: Effective date............................. 52
III. VOTES OF THE COMMITTEE..........................................52
IV. BUDGET EFFECTS OF THE BILL......................................56
A. Committee Estimate of Budgetary Effects............. 56
B. Statement Regarding New Budget Authority and Tax
Expenditures Budget Authority...................... 57
C. Cost Estimate Prepared by the Congressional Budget
Office............................................. 57
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......59
A. Committee Oversight Findings and Recommendations.... 59
B. Statement of General Performance Goals and
Objectives......................................... 59
C. Information Relating to Unfunded Mandates........... 60
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 60
E. Duplication of Federal Programs..................... 60
F. Disclosure of Directed Rule Makings................. 60
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........60
VII. DISSENTING VIEWS...............................................175
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Jobs and Opportunity with Benefits and
Services for Success Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Re-naming of program.
Sec. 5. Helping more Americans enter and remain in the workforce.
Sec. 6. Expecting universal engagement and case management.
Sec. 7. Promoting accountability by measuring work outcomes.
Sec. 8. Targeting funds to truly needy families.
Sec. 9. Targeting funds to core purposes.
Sec. 10. Strengthening program integrity by measuring improper
payments.
Sec. 11. Prohibition on State diversion of Federal funds to replace
State spending.
Sec. 12. Inclusion of poverty reduction as a program purpose.
Sec. 13. Welfare for needs not weed.
Sec. 14. Strengthening accountability through HHS approval of State
plans.
Sec. 15. Aligning and improving data reporting.
Sec. 16. Technical corrections to data exchange standards to improve
program coordination.
Sec. 17. Set-aside for economic downturns.
Sec. 18. Definitions related to use of funds.
Sec. 19. Elimination of obsolete provisions.
Sec. 20. Effective date.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Social Security Act.
SEC. 4. RE-NAMING OF PROGRAM.
(a) In General.--The heading for part A of title IV is amended to
read as follows:
``PART A--JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES PROGRAM''.
(b) Conforming Amendments.--
(1) The heading for section 403(a)(2)(B) (42 U.S.C.
603(a)(2)(B)) is amended by striking ``tanf'' and inserting
``jobs''.
(2) The heading for section 413(a) (42 U.S.C. 613(a)) is
amended by striking ``TANF'' and inserting ``JOBS''.
(3) The heading for section 471(e)(7)(B)(i) (42 U.S.C.
671(e)(7)(B)(i)), as in effect pursuant to the amendment made
by section 50711(a)(2) of division E of the Bipartisan Budget
Act of 2018 (Public Law 115-123), is amended by striking
``TANF'' and inserting ``JOBS''.
SEC. 5. HELPING MORE AMERICANS ENTER AND REMAIN IN THE WORKFORCE.
(a) Family Assistance Grants.--Section 403(a)(1) (42 U.S.C.
603(a)(1)) is amended in each of subparagraphs (A) and (C) by striking
``2017 and 2018'' and inserting ``2019 through 2023''.
(b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) (42 U.S.C. 603(a)(2)(D)) is amended--
(1) by striking ``2017 and 2018'' and inserting ``2019
through 2023''; and
(2) by striking ``for fiscal year 2017 or 2018''.
(c) Tribal Family Assistance Grants.--Section 412(a)(1)(A) (42 U.S.C.
612(a)(1)(A)) is amended by striking ``2017 and 2018'' and inserting
``2019 through 2023''.
(d) Improving Access to Child Care to Support Work.--Section
418(a)(3) (42 U.S.C. 618(a)(3)) is amended by striking ``$2,917,000,000
for each of fiscal years 2017 and 2018'' and inserting ``$3,525,000,000
for each of fiscal years 2019 through 2023''.
(e) Grants to the Territories.--Section 1108(b)(2) (42 U.S.C.
1308(b)(2)) is amended by striking ``2017 and 2018'' and inserting
``2019 through 2023''.
SEC. 6. EXPECTING UNIVERSAL ENGAGEMENT AND CASE MANAGEMENT.
Section 408(b) (42 U.S.C. 608(b)) is amended to read as follows:
``(b) Individual Opportunity Plans.--
``(1) Assessment.--The State agency responsible for
administering the State program funded under this part shall
make an initial assessment of the following for each work-
eligible individual (as defined in the regulations promulgated
pursuant to section 407(i)(1)(A)(i)):
``(A) The education obtained, skills, prior work
experience, work readiness, and barriers to work of the
individual.
``(B) The well-being of the children in the family of
the individual and, where appropriate, activities or
services (such as services offered by a program funded
under section 511) to improve the well-being of the
children.
``(2) Contents of plans.--On the basis of the assessment
required by paragraph (1) of this subsection, the State agency,
in consultation with the individual, shall develop an
individual opportunity plan that--
``(A) includes a personal responsibility agreement in
which the individual acknowledges receipt of publicly-
funded benefits and responsibility to comply with
program requirements in order to receive the benefits;
``(B) sets forth the obligations of the individual to
participate in work activities (as defined in section
407(d)), and the number of hours per month for which
the individual will so participate pursuant to section
407;
``(C) sets forth an employment goal and planned
short-, intermediate-, and long-term actions to achieve
the goal, and, in the case of an individual who has not
attained 24 years of age and is in secondary school or
the equivalent, the intermediate action may be
completion of secondary school or the equivalent;
``(D) describes the job counseling and other services
the State will provide to the individual to enable the
individual to obtain and keep employment in the private
sector;
``(E) may include referral to appropriate substance
abuse or mental health treatment; and
``(F) is signed by the individual.
``(3) Timing.--The State agency shall comply with paragraph
(1) and (2) with respect to a work-eligible individual--
``(A) within 180 days after the effective date of
this subsection, in the case of an individual who, as
of such effective date, is a recipient of assistance
under the State program funded under this part (as in
effect immediately before such effective date); or
``(B) within 60 days after the individual is
determined to be eligible for the assistance, in the
case of any other individual.
``(4) Penalty for noncompliance by individual.--In addition
to any other penalties required under the State program funded
under this part, the State may reduce, by such amount as the
State considers appropriate, the amount of assistance otherwise
payable under the State program to a family that includes an
individual who fails without good cause to comply with an
individual opportunity plan developed pursuant to this
subsection, that is signed by the individual.
``(5) Periodic review.--The State shall meet with each work-
eligible individual assessed by the State under paragraph (1),
not less frequently than every 90 days, to--
``(A) review the individual opportunity plan
developed for the individual;
``(B) discuss with the individual the progress made
by the individual in achieving the goals specified in
the plan; and
``(C) update the plan, as necessary, to reflect any
changes in the circumstances of the individual since
the plan was last reviewed.''.
SEC. 7. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES.
(a) In General.--Section 407(a) (42 U.S.C. 607(a)) is amended to read
as follows:
``(a) Performance Accountability and Work Outcomes.--
``(1) Purpose.--The purpose of this subsection is to provide
for the establishment of performance accountability measures to
assess the effectiveness of States in increasing employment,
retention, and advancement among families receiving assistance
under the State program funded under this part.
``(2) In general.--A State to which a grant is made under
section 403 for a fiscal year shall achieve the requisite level
of performance on an indicator described in paragraph (3)(B) of
this subsection for the fiscal year.
``(3) Measuring state performance.--
``(A) In general.--Each State, in consultation with
the Secretary, shall collect and submit to the
Secretary the information necessary to measure the
level of performance of the State for each indicator
described in subparagraph (B), for fiscal year 2020 and
each fiscal year thereafter, and the Secretary shall
use the information collected for fiscal year 2020 to
establish the baseline level of performance for each
State for each such indicator.
``(B) Indicators of performance.--The indicators
described in this subparagraph, for a fiscal year, are
the following:
``(i) The percentage of individuals who were
work-eligible individuals as of the time of
exit from the program, who are in unsubsidized
employment during the 2nd quarter after the
exit.
``(ii) The percentage of individuals who were
work-eligible individuals who were in
unsubsidized employment in the 2nd quarter
after the exit, who are also in unsubsidized
employment during the 4th quarter after the
exit.
``(iii) The median earnings of individuals
who were work-eligible individuals as of the
time of exit from the program, who are in
unsubsidized employment during the 2nd quarter
after the exit.
``(iv) The percentage of individuals who have
not attained 24 years of age, are attending
high school or enrolled in an equivalency
program, and are work-eligible individuals or
were work-eligible individuals as of the time
of exit from the program, who obtain a high
school degree or its recognized equivalent
while receiving assistance under the State
program funded under this part or within 1 year
after the exit.
``(C) Levels of performance.--
``(i) In general.--For each State submitting
a State plan pursuant to section 402(a), there
shall be established, in accordance with this
subparagraph, levels of performance for each of
the indicators described in subparagraph (B).
``(ii) Weight.--The weight assigned to such
an indicator shall be the following:
``(I) 40 percent, in the case of the
indicator described in subparagraph
(B)(i).
``(II) 25 percent, in the case of the
indicator described in subparagraph
(B)(ii).
``(III) 25 percent, in the case of
the indicator described in subparagraph
(B)(iii).
``(IV) 10 percent, in the case of the
indicator described in subparagraph
(B)(iv).
``(iii) Agreement on requisite performance
level for each indicator.--
``(I) In general.--The Secretary and
the State shall negotiate the requisite
level of performance for the State with
respect to each indicator described in
clause (ii), for each of fiscal years
2020 through 2023, and in the case of
each of fiscal years 2021 through 2023,
shall do so before the beginning of the
respective fiscal year.
``(II) Requirements in establishing
performance levels.--In establishing
the requisite levels of performance,
the State and the Secretary shall--
``(aa) take into account how
the levels involved compare
with the levels established for
other States;
``(bb) ensure the levels
involved are adjusted, using
the objective statistical model
referred to in clause (v),
based on--
``(AA) the
differences among
States in economic
conditions, including
differences in
unemployment rates or
employment losses or
gains in particular
industries; and
``(BB) the
characteristics of
participants on entry
into the program,
including indicators of
prior work history,
lack of educational or
occupational skills
attainment, or other
factors that may affect
employment and
earnings; and
``(CC) take into
account the extent to
which the levels
involved promote
continuous improvement
in performance by each
State.
``(iv) Revisions based on economic conditions
and individuals receiving assistance during the
fiscal year.--The Secretary shall, in
accordance with the objective statistical model
referred to in clause (v), revise the requisite
levels of performance for a State and a fiscal
year to reflect the economic conditions and
characteristics of the relevant individuals in
the State during the fiscal year.
``(v) Statistical adjustment model.--The
Secretary shall use an objective statistical
model to make adjustments to the requisite
levels of performance for the economic
conditions and characteristics of the relevant
individuals, and shall consult with the
Secretary of Labor to develop a model that is
the same as or similar to the model described
in section 116(b)(3)(A)(viii) of the Workforce
Innovation and Opportunity Act (29 U.S.C.
3141(b)(3)(A)(viii)).
``(vi) Definition of exit.--In this
subsection, the term `exit' means, with respect
to a State program funded under this part,
ceases to a receive a JOBS benefit under the
program.
``(D) State option to establish common exit
measures.--Notwithstanding subparagraph (C)(vi) of this
paragraph, a State that has not provided the
notification under section 121(b)(1)(C)(ii) of the
Workforce Innovation and Opportunity Act to exclude the
State program funded under this part as a mandatory
one-stop partner may adopt an alternative definition of
`exit' for the purpose of creating common exit measures
to improve alignment with workforce programs operated
under title I of such Act.
``(E) Regulations.--In order to ensure nationwide
comparability of data, the Secretary, after
consultation the Secretary of Labor and with States,
shall issue regulations governing the establishment of
the performance accountability system under this
subsection and a template for performance reports to be
used by all States consistent with subsection (b).''.
(b) Reports on State Performance on HHS Online Dashboard.--Section
407(b) (42 U.S.C. 607(b)) is amended to read as follows:
``(b) Publication of State Performance.--The Secretary shall,
directly or through the use of grants or contracts, establish and
operate an Internet website that is accessible to the public, with a
dashboard that is regularly updated and provides easy-to-understand
information on the performance of each State program funded under this
part, including a profile for each such program, expressed by use of a
template, which shall include--
``(1) information on the indicators and requisite performance
levels established for the State under subsection (a),
including, with respect to each such level, whether the State
achieves, exceeds, or fails to achieve the level on an ongoing
basis, including--
``(A) information on any adjustments made to the
requisite levels using the statistical adjustment model
described in subsection (a)(3)(D)(v); and
``(B) a grade based on the overall performance of the
State, as determined by the Secretary and in
consultation with the State, and the overall
performance shall be graded based on the performance
indicators and weights for each such indicator as
described in subsection (a);
``(2) information reported under section 411 on the
characteristics and demographics of individuals receiving
assistance under the State program, including--
``(A) the number and percentage of child-only cases
and reason why the cases are child-only; and
``(B) the average weekly number of hours that each
work-eligible individual in the State program
participates in work activities, including a separate
section showing the number and percentage of the work-
eligible individuals with zero hours of the
participation and the reason for non-participation;
``(3) information on the results of improper payments
reviews;
``(4) a link to the State plan approved under section 402;
and
``(5) information regarding any penalty imposed, or other
corrective action taken, by the Secretary against a State for
failing to achieve a requisite performance level or any other
requirement imposed by or under this part.''.
(c) Modification of Rules for Determining Whether an Individual Is
Engaged in Work.--Section 407(c) (42 U.S.C. 607(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``For purposes of subsection
(b)(1)(B)(i), a'' and inserting ``A''; and
(ii) by striking ``, not fewer than'' and all
that follows through ``this subsection''; and
(B) in subparagraph (B)--
(i) in the matter preceding clause (i), by
striking ``For purposes of subsection
(b)(2)(B), an'' and inserting ``An'';
(ii) in clause (i), by striking ``, not fewer
than'' and all that follows through ``this
subsection''; and
(iii) in clause (ii), by striking ``, not
fewer than'' and all that follows through
``subsection (d)''; and
(2) in paragraph (2)--
(A) by striking subparagraphs (A) and (D);
(B) in each of subparagraphs (B) and (C), by striking
``For purposes of determining monthly participation
rates under subsection (b)(1)(B)(i), a'' and inserting
``A''; and
(C) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.
(d) Modifications to Allowable Work Activities.--Section 407(d) (42
U.S.C. 607(d)) is amended--
(1) in paragraph (5), by inserting ``, including
apprenticeship'' before the semicolon;
(2) in paragraph (8), by striking ``(not to exceed 12 months
with respect to any individual)'' and inserting ``, including
career technical education'';
(3) in paragraph (11), by striking ``and'' at the end;
(4) in paragraph (12), by striking the period and inserting
``; and''; and
(5) by adding at the end the following:
``(13) any other activity that the State determines is
necessary to improve the employment, earnings, or other
outcomes of a recipient of assistance that are used in
determining a level of performance by the State for purposes of
subsection (a), as described in the State plan approved under
section 402.''.
SEC. 8. TARGETING FUNDS TO TRULY NEEDY FAMILIES.
(a) Prohibition on Use of Funds for Families With Income Greater Than
Twice the Poverty Line.--Section 404(k) (42 U.S.C. 604(k)) is amended
to read as follows:
``(k) Prohibitions.--
``(1) Use of funds for persons with income greater than twice
the poverty line.--A State to which a grant is made under this
part shall not use the grant to provide any assistance or
services to a family whose monthly income exceeds twice the
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section 673(2)
of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C.
9902(2))).''.
(b) Elimination of Limitation on Use of Funds for Case Management
Activities.--Section 404(b)(2) (42 U.S.C. 604(b)(2)) is amended to read
as follows:
``(2) Exceptions.--Paragraph (1) of this subsection shall not
apply to the use of a grant for--
``(A) information technology and computerization
needed for tracking, monitoring, or data collection
required by or under this part; or
``(B) case management activities to carry out section
408(b).''.
(c) Prohibition on Use of Funds for Direct Spending on Child Care or
Child Welfare Services or Activities.--Section 404(k) (42 U.S.C.
604(k)), as amended by subsection (a) of this section, is amended by
adding at the end the following:
``(2) Direct spending on child care services or activities or
child welfare services or activities.--A State to which a grant
is made under this part shall not use the grant for direct
spending on child care services or activities or direct
spending on child welfare services or activities.''.
(d) Expansion of Authority to Transfer Funds to Other Programs.--
Section 404(d) (42 U.S.C. 604(d)) is amended by striking paragraphs (1)
through (3) and inserting the following:
``(1) In general.--A State may use not more than 50 percent
of the grant made to the State under section 403(a)(1) to carry
out a State program pursuant to any or all of the following
provisions of law:
``(A) The Child Care and Development Block Grant Act
of 1990.
``(B) Title I of the Workforce Innovation and
Opportunity Act.
``(C) Subpart 1 of part B of this title.
``(2) Limitation on amount transferrable to subpart 1 of part
b of this title.--
``(A) In general.--A State may use not more than the
applicable percentage of the amount of a grant made to
the State under section 403(a)(1) to carry out State
programs pursuant to subpart 1 of part B.
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage is 10
percent.
``(3) Applicable rules.--
``(A) In general.--Except as provided in subparagraph
(B) of this paragraph, any amount paid to a State under
this part that is used to carry out a State program
pursuant to a provision of law specified in paragraph
(1) shall not be subject to the requirements of this
part, but shall be subject to the requirements that
apply to Federal funds provided directly under the
provision of law to carry out the program, and the
expenditure of any amount so used shall not be
considered to be an expenditure under this part.
``(B) Funds transferred to the wioa.--In the case of
funds transferred under paragraph (1)(B) of this
subsection--
``(i) all of the funds will be used to
support families eligible for assistance under
the State program funded under this part; and
``(ii) not more than 15 percent of the funds
will be reserved for statewide workforce
investment activities referred to in section
128(a)(1) of the Workforce Innovation and
Opportunity Act.
``(4) Exclusion of states excluding the state jobs program as
a mandatory one-stop partner under the wioa.--The authority
provided by this subsection may not be exercised by a State
that has provided the notification referred to in section
407(a)(3)(D).''.
SEC. 9. TARGETING FUNDS TO CORE PURPOSES.
(a) Requirement That States Reserve 25 Percent of JOBS Grant for
Spending on Core Activities.--Section 408(a) (42 U.S.C. 608(a)) is
amended by adding at the end the following:
``(13) Requirement that states reserve 25 percent of jobs
grant for spending on core activities.--A State to which a
grant is made under section 403(a)(1) for a fiscal year shall
expend not less than 25 percent of the grant on assistance,
case management, work supports and supportive services, work,
wage subsidies, work activities (as defined in section 407(d)),
and non-recurring short-term benefits.''.
(b) Requirement That at Least 25 Percent of Qualified State
Expenditures Be for Core Activities.--Section 408(a) (42 U.S.C.
608(a)), as amended by subsection (a) of this section, is amended by
adding at the end the following:
``(14) Requirement that at least 25 percent of qualified
state expenditures be for core activities.--Not less than 25
percent of the qualified State expenditures (as defined in
section 409(a)(7)(B)(i)) of a State during the fiscal year
shall be for assistance, case management, work supports and
supportive services, work, wage subsidies, work activities (as
defined in section 407(d)), and non-recurring short-term
benefits.''.
(c) Phase-out of Counting of Third-party Contributions as Qualified
State Expenditures.--Section 408(a) (42 U.S.C. 608(a)), as amended by
subsections (a) and (b) of this section, is amended by adding at the
end the following:
``(15) Phase-out of counting of third-party contributions as
qualified state expenditures.--
``(A) In general.--The qualified State expenditures
(as defined in section 409(a)(7)(B)(i)) of a State for
a fiscal year that are attributable to the value of
goods and services provided by a source other than a
State or local government shall not exceed the
applicable percentage of the expenditures for the
fiscal year.
``(B) Applicable percentage.--In subparagraph (A),
the term `applicable percentage' means, with respect to
a fiscal year--
``(i) 75 percent, in the case of fiscal year
2020;
``(ii) 50 percent, in the case of fiscal year
2021;
``(iii) 25 percent, in the case of fiscal
year 2022; and
``(iv) 0 percent, in the case of fiscal year
2023 or any succeeding fiscal year.''.
SEC. 10. STRENGTHENING PROGRAM INTEGRITY BY MEASURING IMPROPER
PAYMENTS.
Section 404 (42 U.S.C. 604) is amended by adding at the end the
following:
``(l) Applicability of Improper Payments Laws.--
``(1) In general.--The Improper Payments Information Act of
2002 and the Improper Payments Elimination and Recovery Act of
2010 shall apply to a State in respect of the State program
funded under this part in the same manner in which such Acts
apply to a Federal agency.
``(2) Regulations.--Within 2 years after the date of the
enactment of this subsection, the Secretary shall prescribe
regulations governing how a State reviews and reports improper
payments under the State program funded under this part.''.
SEC. 11. PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS TO REPLACE
STATE SPENDING.
Section 408(a) (42 U.S.C. 608(a)), as amended by section 9 of this
Act, is amended by adding at the end the following:
``(16) Non-supplantation requirement.--Funds made available
to a State under this part shall be used to supplement, not
supplant, State general revenue spending on activities
described in section 404.''.
SEC. 12. INCLUSION OF POVERTY REDUCTION AS A PROGRAM PURPOSE.
Section 401(a) (42 U.S.C. 601(a)) is amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and
inserting ``; and''; and
(3) by adding at the end the following:
``(5) reduce child poverty by increasing employment entry,
retention, and advancement of needy parents.''.
SEC. 13. WELFARE FOR NEEDS NOT WEED.
(a) Prohibition.--Section 408(a)(12)(A) (42 U.S.C. 608(a)(12)(A)) is
amended--
(1) by striking ``or'' at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and
inserting ``; or''; and
(3) by adding at the end the following:
``(iv) any establishment that offers
marihuana (as defined in section 102(16) of the
Controlled Substances Act) for sale.''.
(b) Effective Date.--The amendments made by subsection (a) shall take
effect on the date that is 2 years after the date of the enactment of
this Act.
SEC. 14. STRENGTHENING ACCOUNTABILITY THROUGH HHS APPROVAL OF STATE
PLANS.
(a) In General.--Section 402 (42 U.S.C. 602) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``found'' and inserting ``approved that''; and
(B) in paragraph (1)--
(i) in subparagraph (A)--
(I) by striking clauses (ii) and
(iii) and inserting the following:
``(ii) Require work-eligible individuals (as
defined in the regulations promulgated pursuant
to section 407(i)(1)(A)(i)) to engage in work
activities consistent with section 407(c). The
document shall describe any other activity that
the State will consider a work activity under
section 407(c)(13).'';
(II) by redesignating clauses (iv)
through (viii) as clauses (iii) through
(vii), respectively; and
(III) by adding at the end the
following:
``(viii) Describe the case management
practices of the State with respect to the
requirements of section 408(b), provide a copy
of the form or forms that will be used to
assess a work-eligible individual (as so
defined) and prepare an individual opportunity
plan for the individual, describe how the State
will ensure that such a plan is reviewed in
accordance with section 408(b)(5), and describe
how the State will measure progress under the
plan.
``(ix) Propose the requisite levels of
performance for the State for purposes of
section 407(a)(3)(D) for each year in the 2-
year period referred to in subsection (d) of
this section, and provide an explanation with
supporting data of why each such level is
appropriate.
``(x) Describe how the State will engage low-
income noncustodial parents paying child
support and how such a parent will be provided
with access to work support and other services
under the program to which the parent is
referred to support their employment and
advancement.
``(xi) Describe how the State will comply
with improper payments provisions in section
404(l).
``(xii) Describe coordination with other
programs, including whether the State intends
to exercise authority provided by section
404(d) of this Act to transfer any funds paid
to the State under this part, provide assurance
that, in the case of a transfer to carry out a
program under title I of the Workforce
Innovation and Opportunity Act, the State will
comply with section 404(d)(3)(B) of this Act
and coordinate with the one-stop delivery
system under the Workforce Innovation and
Opportunity Act, and describe how the State
will coordinate with the programs involved to
provide services to families receiving
assistance under the program referred to in
paragraph (1) of this subsection.
``(xiii) Describe how the State will promote
marriage, such as through temporary disregard
of the income of a new spouse when an
individual receiving assistance under the State
program marries so that the couple doesn't
automatically lose benefits due to marriage.
``(xiv) Describe how the State will allow for
a transitional period of benefits, such as
through temporary earned income disregards or a
gradual reduction in the monthly benefit
amount, for an individual receiving assistance
who obtains employment and becomes ineligible
due to an increase in income obtained through
employment or through an increase in wages.'';
and
(ii) in subparagraph (B), by striking clauses
(iv) and (v);
(2) by striking subsection (c) and inserting the following:
``(c) Public Availability of State Plans.--The Secretary shall make
available to the public a link to any plan or plan amendment submitted
by a State under this subsection.''; and
(3) by adding at the end the following:
``(d) 2-year Plan.--A plan submitted pursuant to this section shall
be designed to be implemented during a 2-year period.
``(e) Combined Plan Allowed.--A State may submit to the Secretary and
the Secretary of Labor a combined State plan that meets the
requirements of subsections (a) and (d) and that is for programs and
activities under the Workforce Innovation and Opportunity Act.
``(f) Approval of Plans.--The Secretary shall approve any plan
submitted pursuant to this section that meets the requirements of
subsections (a) through (d).''.
(b) Duties of the Secretary.--
(1) Coordination of activities; dissemination of
information.--Section 416 (42 U.S.C. 616) is amended--
(A) by inserting ``(a) In General.--'' before ``The
programs''; and
(B) by adding at the end the following:
``(b) Coordination of Activities.--The Secretary shall coordinate all
activities of the Department of Health and Human Services relating to
work activities (as defined in section 407(d)) and requirements and
measurement of employment outcomes, and, to the maximum extent
practicable, coordinate the activities of the Department in this regard
with similar activities of other Federal entities.
``(c) Dissemination of Information.--The Secretary shall disseminate,
for voluntary informational purposes, information on practices that
scientifically valid research indicates are most successful in
improving the quality of State and tribal programs funded under this
part.''.
(c) Technical Assistance.--
(1) In general.--Section 406 (42 U.S.C. 606) is amended to
read as follows:
``SEC. 406. TECHNICAL ASSISTANCE.
``(a) In General.--The Secretary shall provide technical assistance
to States and Indian tribes (which may include providing technical
assistance on a reimbursable basis), which shall be provided by
qualified experts on practices grounded in scientifically valid
research, where appropriate, to support activities related publication
of State performance under section 407(b) and to carry out State and
tribal programs funded under this part.
``(b) Reservation of Funds.--The Secretary shall reserve not more
than 0.25 percent of the amount appropriated by section 403(a)(1)(C)
for a fiscal year to carry out subsection (a) of this section.''.
(2) Conforming amendment.--Section 403(a)(1)(B) (42 U.S.C.
603(a)(1)(B)) is amended by striking ``percentage specified in
section 413(h)(1)'' and inserting ``the sum of the percentages
specified in sections 406(b) and 413(h)''.
SEC. 15. ALIGNING AND IMPROVING DATA REPORTING.
(a) Requirement That States Report Full-population Data.--Section
411(a)(1) (42 U.S.C. 611(a)(1)) is amended--
(1) by striking subparagraph (B);
(2) by striking ``(1) General reporting requirement.--''; and
(3) by--
(A) redesignating--
(i) subparagraph (A) as paragraph (1);
(ii) clauses (i) through (xvii) of
subparagraph (A) as subparagraphs (A) through
(Q), respectively;
(iii) subclauses (I) through (V) of clause
(ii) as clauses (i) through (v), respectively;
(iv) subclauses (I) through (VII) of clause
(xi) as clauses (i) through (vii),
respectively; and
(v) subclauses (I) through (V) of clause
(xvi) as clauses (i) through (v), respectively;
and
(B) moving each such redesignated provision 2 ems to
the left.
(b) Report on Participation in Work Activities.--Section 411(a)(1)
(42 U.S.C. 611(a)(1)), as amended by subsection (a)(3) of this section,
is amended by striking subparagraphs (K) and (L) and inserting the
following:
``(K) The work eligibility status of each individual
in the family, and--
``(i) in the case of each work-eligible
individual (as defined in the regulations
promulgated pursuant to section
407(i)(1)(A)(i)) in the family--
``(I) the number of hours (including
zero hours) per month of participation
in--
``(aa) work activities (as
defined in section 407(d)); and
``(bb) any other activity
required by the State to remove
a barrier to employment; and
``(ii) in the case of each individual in the
family who is not a work-eligible individual
(as so defined), the reason for that status.
``(L) For each work-eligible individual (as so
defined) and each adult in the family who did not
participate in work activities (as so defined) during a
month, the reason for the lack of participation.''.
(c) Reporting of Information on Employment and Earnings Outcomes.--
Section 411(c) (42 U.S.C. 611(c)) is amended to read as follows:
``(c) Reporting of Information on Employment and Earnings Outcomes.--
The Secretary, in consultation with the Secretary of Labor, shall
determine the information that is necessary to compute the employment
and earnings outcomes and the statistical adjustment model for the
employment and earnings outcomes required under section 407, and each
eligible State shall collect and report that information to the
Secretary.''.
SEC. 16. TECHNICAL CORRECTIONS TO DATA EXCHANGE STANDARDS TO IMPROVE
PROGRAM COORDINATION.
(a) In General.--Section 411(d) (42 U.S.C. 611(d)) is amended to read
as follows:
``(d) Data Exchange Standards for Improved Interoperability.--
``(1) Designation.--The Secretary shall, in consultation with
an interagency work group established by the Office of
Management and Budget and considering State government
perspectives, by rule, designate data exchange standards to
govern, under this part--
``(A) necessary categories of information that State
agencies operating programs under State plans approved
under this part are required under applicable Federal
law to electronically exchange with another State
agency; and
``(B) Federal reporting and data exchange required
under applicable Federal law.
``(2) Requirements.--The data exchange standards required by
paragraph (1) shall, to the extent practicable--
``(A) incorporate a widely accepted, non-proprietary,
searchable, computer-readable format, such as the
eXtensible Markup Language;
``(B) contain interoperable standards developed and
maintained by intergovernmental partnerships, such as
the National Information Exchange Model;
``(C) incorporate interoperable standards developed
and maintained by Federal entities with authority over
contracting and financial assistance;
``(D) be consistent with and implement applicable
accounting principles;
``(E) be implemented in a manner that is cost-
effective and improves program efficiency and
effectiveness; and
``(F) be capable of being continually upgraded as
necessary.
``(3) Rule of construction.--Nothing in this subsection shall
be construed to require a change to existing data exchange
standards found to be effective and efficient.''.
(b) Effective Date.--Not later than the date that is 24 months after
the date of the enactment of this section, the Secretary of Health and
Human Services shall issue a proposed rule that--
(1) identifies federally required data exchanges, include
specification and timing of exchanges to be standardized, and
address the factors used in determining whether and when to
standardize data exchanges; and
(2) specifies State implementation options and describes
future milestones.
SEC. 17. SET-ASIDE FOR ECONOMIC DOWNTURNS.
Section 404(e) (42 U.S.C. 604(e)) is amended to read as follows:
``(e) Deadlines for Obligation and Expenditures of Funds by States.--
``(1) In general.--Except as provided in paragraph (2), a
State to which funds are paid under section 403(a)(1) shall
obligate the funds within 2 years after the date the funds are
so paid, and shall expend the funds within 3 years after such
date.
``(2) Exception for limited amount of funds set aside for
future use.--A State to which funds are paid under section
403(a)(1) may reserve not more than 15 percent of the funds for
future use in the State program funded under this part.''.
SEC. 18. DEFINITIONS RELATED TO USE OF FUNDS.
Section 419 (42 U.S.C. 619) is amended by adding at the end the
following:
``(6) Assistance.--The term `assistance' means cash,
payments, vouchers, and other forms of benefits designed to
meet a family's ongoing basic needs (such as for food,
clothing, shelter, utilities, household goods, personal care
items, and general incidental expenses).
``(7) Work supports.--The term `work supports' means
assistance and non-assistance transportation benefits (such as
the value of allowances, bus tokens, car payments, auto repair,
auto insurance reimbursement, and van services provided in
order to help families obtain, retain, or advance in
employment, participate in work activities (as defined in
section 407(d)), or as a non-recurrent, short-term benefit,
including goods provided to individuals in order to help them
obtain or maintain employment (such as tools, uniforms, fees to
obtain special licenses, bonuses, incentives, and work support
allowances and expenditures for job access).
``(8) Supportive services.--The term `supportive services'
means services such as domestic violence services, and mental
health, substance abuse and disability services, housing
counseling services, and other family supports, except to the
extent that the provision of the service would violate section
408(a)(6).
``(9) JOBS benefit.--The term `JOBS benefit' means--
``(A) assistance; or
``(B) wage subsidies that are paid, with funds
provided under section 403(a) or with qualified State
expenditures, with respect to a person who--
``(i) was a work-eligible individual (as
defined in the regulations promulgated pursuant
to section 407(i)(1)(A)(i)) at the time of
entry into subsidized employment, such as on-
the-job training or apprenticeship; and
``(ii) is not receiving assistance.''.
SEC. 19. ELIMINATION OF OBSOLETE PROVISIONS.
(a) Elimination of Supplemental Grants to States.--Section 403(a) (42
U.S.C. 603(a)) is amended by striking paragraph (3).
(b) Elimination of Bonus to Reward High Performance States.--
(1) In general.--Section 403(a) (42 U.S.C. 603(a)) is amended
by striking paragraph (4).
(2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C.
1308(a)(2)) is amended by striking ``403(a)(4),''.
(c) Elimination of Welfare-to-work Grants.--
(1) In general.--Section 403(a) (42 U.S.C. 603(a)) is amended
by striking paragraph (5).
(2) Conforming amendments.--
(A) Elimination of exclusion from time limit.--
Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by
striking subparagraph (G).
(B) Elimination of penalty for misuse of competitive
welfare-to-work funds.--Section 409(a)(1) (42 U.S.C.
609(a)(1)) is amended by striking subparagraph (C).
(C) Elimination of exclusion from qualified state
expenditures of state funds used to match welfare-to-
work grant funds.--Section 409(a)(7)(B)(iv) (42 U.S.C.
609(a)(7)(B)(iv)) is amended in the 1st sentence--
(i) by adding ``or'' at the end of subclause
(II); and
(ii) by striking subclause (III) and
redesignating subclause (IV) as subclause
(III).
(D) Elimination of penalty for failure of state to
maintain historic effort during year in which welfare-
to-work grant is received.--Section 409(a) (42 U.S.C.
609(a)) is amended by striking paragraph (13).
(E) Elimination of requirements relating to welfare-
to-work grants in quarterly state reports.--Section
411(a) (42 U.S.C. 611(a)), as amended by section 15(a)
of this Act, is amended--
(i) in paragraph (1), by striking ``(except
for information relating to activities carried
out under section 403(a)(5))''; and
(ii) in each of paragraphs (2) through (4),
by striking the comma and all that follows and
inserting a period.
(F) Indian tribal programs.--Section 412(a) (42
U.S.C. 612(a)) is amended by striking paragraph (3).
(G) Elimination of requirement to disclose certain
information to private industry council receiving
welfare-to-work funds.--Section 454A(f) (42 U.S.C.
654a(f)) is amended by striking paragraph (5).
(H) Grants to territories.--Section 1108(a)(2) (42
U.S.C. 1308(a)(2)) is amended by striking
``403(a)(5),''.
(d) Elimination of Contingency Fund.--
(1) In general.--Section 403 (42 U.S.C. 603) is amended by
striking all of subsection (b) except paragraph (5).
(2) Conforming amendments.--
(A) Transfer of needy state definition.--
(i) In general.--Paragraph (5) of section
403(b) (42 U.S.C. 603(b)(5)) is--
(I) amended--
(aa) in the matter preceding
subparagraph (A), by striking
``paragraph (4)'' and inserting
``subparagraph (C)'';
(bb) in each of subparagraphs
(A) and (B), by redesignating
clauses (i) and (ii) as
subclauses (I) and (II),
respectively;
(cc) by redesignating
subparagraphs (A) and (B) as
clauses (i) and (ii),
respectively;
(dd) by redesignating such
paragraph as subparagraph (D);
and
(ee) by moving each provision
2 ems to the right; and
(II) as so amended, hereby
transferred into section 409(a)(3) (42
U.S.C. 609(a)(3)) and added to the end
of such section.
(ii) Conforming amendment.--Section
409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) is
amended by striking ``(as defined in section
403(b)(5))''.
(B) Elimination of penalty for failure of state
receiving amounts from contingency fund to maintain 100
percent of historic effort.--Section 409(a) (42 U.S.C.
609(a)) is amended by striking paragraph (10).
(e) Conforming Amendments Related to Elimination of Federal Loans for
State Welfare Programs.--
(1) Elimination of associated penalty provision.--
(A) In general.--Section 409(a) (42 U.S.C. 609(a)) is
amended by striking paragraph (6).
(B) Conforming amendments.--Section 412(g)(1) (42
U.S.C. 612(g)(1)) is amended by striking ``(a)(6),''.
(2) Elimination of provision providing for tribal
eligibility.--Section 412 (42 U.S.C. 612) is amended by
striking subsection (f).
(3) Elimination of disregard of loan in applying limit on
payments to the territories.--Section 1108(a)(2) (42 U.S.C.
1308(a)(2)) is amended by striking ``406,''.
(f) Elimination of Limitations on Other State Programs Funded With
Qualified State Expenditures.--
(1) The following provisions are each amended by striking
``or any other State program funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i))'':
(A) Paragraphs (1) and (2) of section 407(e) (42
U.S.C. 607(e)(1) and (2)).
(B) Section 411(a)(1) (42 U.S.C. 611(a)(1)), as
amended by section 15(a)(3)(A)(i) of this Act.
(C) Subsections (d) and (e)(1) of section 413 (42
U.S.C. 613(d) and (e)(1)).
(2) Section 413(a) (42 U.S.C. 613(a)) is amended by striking
``and any other State program funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i))''.
(g) Conforming Amendments Related to Elimination of Report.--
(1) In general.--Section 409(a)(2) (42 U.S.C. 609(a)(2)) is
amended--
(A) in the paragraph heading, by inserting
``quarterly'' before ``report'';
(B) in subparagraph (A)(ii), by striking ``clause
(i)'' and inserting ``subparagraph (A)'';
(C) by striking ``(A) Quarterly reports.--'';
(D) by striking subparagraph (B); and
(E) by redesignating clauses (i) and (ii) of
subparagraph (A) as subparagraphs (A) and (B),
respectively (and adjusting the margins accordingly).
(2) Conforming amendments.--
(A) Section 409(b)(2) (42 U.S.C. 609(b)(2)) is
amended by striking ``and,'' and all that follows and
inserting a period.
(B) Section 409(c)(4) (42 U.S.C. 609(c)(4)) is
amended by striking ``(2)(B),''.
(h) Annual Reports to Congress.--Section 411(b)(1)(A) (42 U.S.C.
611(b)(1)(A)) is amended by striking ``participation rates'' and
inserting ``outcome measures''.
(i) Reduction in Force Provisions.--Section 416(a) (42 U.S.C.
616(a)), as so designated by section 14(b)(1)(A) of this Act, is
amended by striking ``, and the Secretary'' and all that follows and
inserting a period.
(j) Conforming Cross-references.--
(1) Section 409 (42 U.S.C. 609) is amended--
(A) in subsection (a)(7)(B)(i)(III), by striking
``(12)'' and inserting ``(10)'';
(B) in subsection (a) (as amended by subsections
(c)(2)(D), (d)(2)(B), and (e)(1)(A) of this section),
by redesignating paragraphs (7), (8), (9), (11), (12),
(14), (15), and (16) as paragraphs (6) through (13),
respectively;
(C) in subsection (b)(2), by striking ``(8), (10),
(12), or (13)'' and inserting ``or (10)''; and
(D) in subsection (c)(4), by striking ``(8), (10),
(12), (13), or (16)'' and inserting ``(10), or (13)''.
(2) Section 452 (42 U.S.C. 652) is amended in each of
subsections (d)(3)(A)(i) and (g)(1) by striking ``409(a)(8)''
and inserting ``409(a)(7)''.
(k) Modifications to Maintenance-of-effort Requirement.--Section
409(a)(6)(B)(i) (42 U.S.C. 609(a)(6)(B)(i)), as redesignated by
subsection (j)(1)(B) of this section, is amended--
(1) in subclause (I)--
(A) in the matter preceding item (aa), by striking
``all State programs'' and inserting ``the State
program funded under this part'';
(B) by redesignating items (dd) and (ee) as items
(ee) and (ff), respectively, and inserting after item
(cc) the following:
``(dd) Expenditures for a
purpose described in paragraph
(3) or (4) of section
401(a).''; and
(C) in item (ee) (as so redesignated), by striking
``and (ee)'' and inserting ``(dd), and (ff)'';
(2) in subclause (II)(aa), by inserting ``(as in effect just
before the effective date of the Jobs and Opportunity with
Benefits and Services for Success Act)'' after ``this
section'';
(3) by striking subclause (V); and
(4) in subclause (IV), by inserting ``, except any of such
families whose monthly income exceeds twice the poverty line
(as defined by the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the Omnibus
Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)))'' before
the period.
SEC. 20. EFFECTIVE DATE.
Except as provided in section 13(b), the amendments made by this Act
shall take effect on October 1, 2018.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
H.R. 5861, as amended, the ``Jobs and Opportunity with
Benefits and Services for Success Act,'' as ordered reported by
the Committee on Ways and Means on May 24, 2018, amends title
IV-A of the Social Security Act to reauthorize and extend the
Temporary Assistance for Needy Families (TANF) Program, rename
the program as the Jobs and Opportunity with Benefits and
Services (JOBS) Program, and make other revisions to the law.
B. Background and Need for Legislation
TANF is our nation's primary cash assistance and services
welfare program. In 1996, it was the centerpiece of successful,
Republican-led welfare reform that for the first time
introduced work requirements, time limits, and capped funding
in the form of a block grant. In the early years after 1996,
the number of families receiving cash assistance under TANF
fell by more than 50 percent because single mothers went to
work in record numbers. Poverty among female-headed households
with children remains lower today than before the 1996
reforms.\1\
---------------------------------------------------------------------------
\1\Historical Poverty Tables: People and Families--1959 to 2016,
U.S. Census Bureau.
---------------------------------------------------------------------------
Yet over the last two decades the program has lost
efficacy, both in its focus on work and targeting funds to the
truly needy. There has been an increasing bipartisan awareness
that TANF is not living up to expectations set for it in 1996.
Many states have found loopholes in the law that have allowed
them to stray from the original intent and have lost sight of
what the program was intended to do--that is, get more parents
into the workforce. In 2016, nearly 40 percent of work-eligible
TANF recipients had zero hours of participation in work or
training activities.\2\ Only 11 states were required to meet
the 50 percent work participation rate required in the law.\3\
The remaining states had a much lower ``adjusted'' rate using
provisions of the law needed in 1996, but are less relevant
today. In fact, 18 states have an adjusted work participation
rate of zero, meaning those states are not required to engage
anyone in work activities. States are spending a combined $30
billion a year through TANF and less than half of those dollars
are being spent on core activities such as cash assistance,
work, education, training, or supportive services.\4\ Instead,
as caseloads have dropped, many states have diverted TANF funds
to fill budget holes or fund specialty programs that have
little to do with supporting work.
---------------------------------------------------------------------------
\2\Work Participation Rates--Fiscal Year 2016, Table 6A, Average
monthly number of work-eligible individuals with hours of participation
in work activities, U.S. Department of Health and Human Services.
\3\Work Participation Rates--Fiscal Year 2016, Table 1A, Combined
TANF and SSP-MOE Work Participation Rates, U.S. Department of Health
and Human Services.
\4\TANF and MOE Spending and Transfers by Activity, FY 2016, U.S.
Department of Health and Human Services.
---------------------------------------------------------------------------
The economic context for this legislation is important to
understand. In December 2017, Congress passed the Tax Cuts and
Jobs Act (P.L. 115-97). During the first quarter of 2018, the
labor market added over 200,000 jobs per month and the
unemployment rate was at its lowest level since the turn of the
century.5,}6 The number of job openings soared to
more than 6 million and the number of people filing new
applications for unemployment benefits fell to the lowest level
since December 1969.7,}8 From the perspective of
workers or potential workers, the economy is as strong as it
has been in years.
---------------------------------------------------------------------------
\5\``Unemployment Rate Hits 3.9%, a Rare Low, as Job Market Becomes
More Competitive,'' New York Times, May 4, 2018.
\6\``Brady Statement on March 2018 Jobs Report,'' Press Release,
Committee on Ways and Means, U.S. House of Representatives, April 6,
2018.
\7\``Job Openings and Labor Turnover--March 2018,'' Bureau of Labor
Statistics, U.S. Department of Labor, May 8, 2018.
\8\``U.S. Jobless Claims Hit Lowest Level Since 1969,'' Wall Street
Journal, March 1, 2018.
---------------------------------------------------------------------------
Underlying this narrative, has been a pervasive decline in
labor force participation, particularly among prime-age males,
exacerbating workforce challenges faced by employers due to
retirements by the Baby Boom generation. In May 2018, the labor
force participation rate was at 62.7 percent, one of the lowest
since 1977.\9\ Many different factors have contributed to this
problem, including the country's opioid epidemic, which some
scholars have asserted could account for about 20 percent of
the observed decline.\10\ The Committee held two hearings in
2017 examining this issue in detail and found that 7 million
prime working-age (25-54) men are not participating in the
labor force. In addition, one in seven 16-24 year olds are not
in school or working, totaling more than 5.5 million
``disconnected'' youth nationwide.11,}12
---------------------------------------------------------------------------
\9\Bureau of Labor Statistics. ``Employment Situation Summary.''
Released Friday, June 1, 2018.
\10\``Where have all the workers gone? An inquiry into the decline
of the U.S. labor force participation rate,'' Brookings Paper on
Economic Activity, Alan Kreuger, September 7, 2017.
\11\``Getting men back to work: Solutions from the right and
left,'' American Enterprise Institute, Brent Orrell, Harry J. Holzer,
Robert Doar, April 20, 2017.
\12\``Zeroing In on Place and Race,'' Measure of America of the
Social Science Research Council, June 10, 2015.
---------------------------------------------------------------------------
The number of individuals disconnected from the labor force
has important implications for TANF and other anti-poverty
programs. According to the Congressional Budget Office (CBO):
Changes in labor force participation have significant
economic and budgetary implications. A lower labor
force participation rate is associated with lower gross
domestic product (GDP) and lower tax revenues. It is
also associated with larger federal outlays, because
people who are not in the labor force are more likely
to enroll in certain federal benefit programs.\13\
---------------------------------------------------------------------------
\13\``Factors Affecting the Labor Force Participation of People
Ages 25 to 54,'' Congressional Budget Office, February 7, 2018.
In sum, too many working-age American adults are not
working and relying on government-funded help.
The Committee has held three hearings in 2018 to better
understand the ``jobs gap.'' As displayed in the chart below,
the jobs gaps reflects the difference between employers' demand
for workers, shown as the number of job openings, and the
declining number of individuals in the labor force, shown as
the labor force participation rate. In these hearings,
employers from across the country and across industries talked
about their challenges finding workers. Employers said they
have good jobs available that do not require a college degree,
but not enough workers. Many employers have developed training
and apprenticeship programs, but they just can't find job ready
and reliable workers. Meanwhile, we have millions of Americans
on the sidelines, disconnected from the workforce and welfare
caseloads that have not returned to levels prior to the 2007-
2009 recession.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
This chart reflects the need for more workers to help
support and promote the current period of economic expansion.
Increasing work among those in poverty is to the benefit of our
nation, as well as themselves and their children because we
know when individuals and parents work full time, the poverty
rate drops to just 3 percent.\14\ Many welfare programs provide
benefits only to alleviate immediate need, yet few provide low-
income individuals the tools they need succeed in the workforce
and move up the economic ladder.
---------------------------------------------------------------------------
\14\Income and Poverty in the United States, Table 3. People in
Poverty by Selected Characteristics: 2014 and 2015, U.S. Census Bureau.
---------------------------------------------------------------------------
Throughout the Committee's hearings, it has learned that
welfare recipients often have a difficult time transitioning
from welfare into a job and employers may be reluctant to hire
individuals who may have limited work experience or other
barriers. The Committee bill seeks to revitalize the focus on
work in TANF and re-orient spending towards the kind of work
supports, case management, and wrap-around services employers
in our hearings said potential workers need. Reauthorization
provides an opportunity to re-establish the foundational
principles that led to TANF's success more than twenty years
ago.
TANF expires in September 2018. Since last being
reauthorized by the Deficit Reduction Act of 2005 (P.L. 109-
171), TANF has been extended in short bursts 26 times, often
attached to the discretionary appropriations process, even
though it is a mandatory program whose funding is in the CBO
baseline, meaning no offsets are needed to extend the
program.\15\ This is in spite of the fact that there is
widespread recognition that the program is broken. As one of
our hearing witnesses put it ``we cannot keep hitting the
snooze button.'' This Committee takes seriously its
responsibility to ensure taxpayer dollars are being used for
their intended purpose and to reauthorize expiring programs,
providing stability to states and program participants. The
country's strong economy paired with a worker shortage adds an
additional sense of urgency to reauthorizing this program for a
full five-year reauthorization period. Now is the time to make
meaningful reforms to help more Americans find jobs and climb
the economic ladder to share in the success created by the Tax
Cuts and Jobs Act (P.L. 115-97).
---------------------------------------------------------------------------
\15\``The Temporary Assistance for Needy Families (TANF) Block
Grant: A Legislative History,'' Congressional Research Service, Gene
Falk, November 29, 2017. (R44668)
---------------------------------------------------------------------------
C. Legislative History
Background
H.R. 5861, the ``Jobs and Opportunity for Benefits and
Services (JOBS) for Success Act,'' was introduced on May 17,
2018 by Human Resources Subcommittee Chairman Adrian Smith and
cosponsored by Full Committee Chairman Kevin Brady as well as
Representatives Devin Nunes, Lynn Jenkins, Tom Reed, Jim
Renacci, Jackie Walorski, Darin LaHood, Mike Bishop, Tom Rice,
Jason Smith, George Holding, Vern Buchanan, Kenny Marchant, and
Mike Kelly and was referred to the Committee on Ways and Means.
The legislation's introduction was preceded by release of a
discussion draft on May 8, 2018.
H.R. 5861, as amended, includes several Ways and Means
Committee Member bills:
H.R. 5836, the ``Supporting Work through
Apprenticeships Act'' by Representative Mike Bishop,
co-sponsored by Representatives Adrian Smith, Carlos
Curbelo and Jim Renacci includes apprenticeships within
the current law definition of on-the-job training.
H.R. 5835, the ``Improving Access to Child
Care Act'' by Representative. Mike Bishop, co-sponsored
by Representative Lynn Jenkins--increases the current
funding for Child Care Entitlement to States portion of
the Child Care Development Fund (CCDF) to $3.5 billion
annually from $2.9 billion annually.
H.R. 5843, ``The Benefits to Employment
Act'' by Representative Jason Smith, co-sponsored by
Representative Adrian Smith requires all work-eligible
individuals receiving assistance to participate in work
or work preparation activities for a minimum number of
hours per month in exchange for benefits and expects
universal engagement and case management to develop and
individual opportunity plan.
H.R. 5838, the ``Improving Access to Work
Act'' by Representative Darren LaHood, co-sponsored by
Representative Adrian Smith--adds non-supplantation
language to prohibit the diversion of federal funds to
replace State spending.
H.R. 5842, the ``Helping Americans Succeed
by Measuring Outcomes Act'' by Representative Tom Reed,
co-sponsored by Representative Adrian Smith--applies an
outcome-based performance accountability system to
assess the effectiveness of States in increasing
employment, retention, and advancement among families
receiving assistance.
H.R. 5854, the ``Improving Transparency in
TANF through Data Act'' by Representative Dave
Schweikert, co-sponsored by Representative Adrian
Smith--requires reporting of full population data,
rather than samples, in order to improve transparency
and sub-state analysis and adds reporting to capture
the number of hours per month for each work-eligible
individual.
H.R. 5847, the ``Protecting Family Resources
and Training Options Act'' by Representative Carlos
Curbelo, co-sponsored by Representative Adrian Smith--
requires program data be subject to improper payment
reviews consistent with other programs across
government to produce a national error rate for the
program, and clarifies that vocational education
training includes career technical education and
removes the 12-month time limit on such training and
education.
H.R. 5853, the ``Preserving Welfare for
Needs Not Weed Act'' by Representative Dave Reichert--
prohibits the use of an electronic benefit card to get
cash at any establishment offering marijuana for sale.
H.R. 4167, the ``Coordinating Assistance for
TANF Recipients Act'' by Representative Jackie
Walorski, co-sponsored by Representative Adrian Smith--
establishes Coordinated Case Management Demonstration
Projects to help individuals increase their employment
and self-sufficiency.
H.R. 1352, the ``Preparing More Welfare
Recipients for Work Act'' by Representative Jim
Renacci, co-sponsored by Representative Adrian Smith--
eliminates the distinction between core work activities
and other specified work activities related to training
and education.
Committee hearings
The Human Resources Subcommittee of the Committee on Ways
and Means has held seven hearings featuring 31 witnesses during
the 115th Congress to discuss declining labor force
participation, the jobs gap, and reauthorization of TANF. These
hearings included witnesses representing local, employer, and
federal perspectives on the jobs gap. A legislative hearing on
a discussion draft for reauthorizing TANF, which immediately
preceded the Committee markup, included feedback from poverty-
policy and workforce development experts on how TANF
reauthorization could be used as a building block to help close
the jobs gap. The Committee bill is a result of what the
Committee learned from these hearings and feedback received
from witnesses and numerous outside stakeholders on the May 8,
2018 discussion draft released by the Committee.
These hearings included:
February 15, 2017: Human Resources
Subcommittee hearing on ``Geography of Poverty''
May 17, 2017: Human Resources Subcommittee
hearing on ``Opportunities for Youth and Young Adults
to Break the Cycle of Poverty''
September 6, 2017: Human Resources
Subcommittee hearing on ``Missing from the Labor Force:
Examining Declining Employment among Working-Age Men''
April 12, 2018: Human Resources Subcommittee
hearing on ``Jobs and Opportunity: Local Perspectives
on the Jobs Gap''
April 17, 2018: Full Committee hearing on
``Jobs and Opportunity: Federal Perspectives on the
Jobs Gap''
April 25, 2018: Human Resources Subcommittee
hearing on ``Jobs and Opportunity: Employer
Perspectives on the Jobs Gap''
May 9, 2018: Human Resources Subcommittee
hearing on ``Jobs and Opportunity: Legislative
Perspectives on the Jobs Gap''
Committee action
On May 8, 2018, Representative Adrian Smith released a
discussion draft of the JOBS for Success Act. Following the
release of the discussion draft, on May 9, 2018, the Ways and
Means Subcommittee on Human Resources held the hearing titled
``Jobs and Opportunity: Legislative Options to Address the Jobs
Gap.'' On May 17, 2018, Human Resources Subcommittee Chairman
Adrian Smith, Full Committee Chairman Kevin Brady, and other
Members of the Committee on Ways and Means introduced H.R.
5861, the ``Jobs and Opportunity for Benefits and Services
(JOBS) for Success Act.'' The Committee on Ways and Means
considered H.R. 5861 on May 23-24, 2018. On May 24, 2018, the
bill was ordered favorably reported to the House of
Representatives, as amended, by a roll call vote of 22 yeas to
14 nays.
II. EXPLANATION OF THE BILL
Sections 1, 2, and 3: Short Title, Table of Contents, and References
Present law
No provision.
Explanation of provision
These sections contain the short title of the bill, the
Jobs and Opportunity with Benefits and Services (JOBS) for
Success Act, and the table of contents. The amendments made by
the bill are to sections of the Social Security Act, unless
otherwise specified.
Reason for change
The Committee believes the short title, table of contents,
and references accurately reflect the policy actions included
in the legislation.
Effective date
The provision is effective on October 1, 2018.
Section 4: Re-naming of Program
Present law
Title IV-A of the Social Security Act is titled ``Block
Grant to States for Temporary Assistance for Needy Families,''
commonly known as TANF.
Explanation of provision
The Committee bill renames Title IV-A as the ``Jobs and
Opportunity with Benefits and Services for Success Program,''
or JOBS program.
Reason for change
The Committee re-names the program to underscore the
legislation's goal of refocusing the program on the tangible
outcome of work.
Effective date
The provision is effective on October 1, 2018.
Section 5: Helping More Americans Enter and Remain in the Workforce
Present law
Authorization and appropriations for the Temporary
Assistance for Needy Families (TANF) block grant and certain
related programs expire at the end of Fiscal Year (FY) 2018.
The related programs include the TANF contingency fund, healthy
marriage and responsible fatherhood grants, the Child Care
Entitlement to States, tribal TANF programs, and special
matching grant to the territories for TANF and Title IV-E
activities under section 1108(b) of the Social Security Act.
Explanation of provision
The Committee bill authorizes and funds JOBS and certain
related programs for FY2019 through FY2023. The JOBS
appropriation for each of those years is maintained at the
current level of $16.567 billion. Healthy marriage and
responsible fatherhood grants are funded at their current level
($75 million for each set of grants) over that period. The
appropriation for the Child Care Entitlement to States is
increased from $2.917 billion in FY2018 to $3.525 billion for
each of FY2019 through FY2023. The authorities for tribal TANF
programs and the matching grant for the territories are
extended through FY2023.
Reason for change
These funding extensions and the increase in child care
entitlement funding are intended to help more Americans enter
and remain in the workforce. A five-year authorization period
provides states, service providers, and most importantly the
families served by these programs certainty lacking in the
program over the last 13 years, during which time there has
been an average of two short-term extensions each year.
The Committee strongly believes maintaining the current
funding level for the program is appropriate because there is a
recognition TANF is just one of the more than 80 programs
collectively spending more than $1 trillion annually to provide
benefits and services to low-income families. Too often
legislative actions and funding discussions at the federal
level happen in a vacuum. The nature of Congressional Committee
jurisdiction and structure creates silos between otherwise
related programs with similar goals serving the same
population. For example, nearly all TANF families are also
receiving Medicaid and benefits from the Supplemental Nutrition
Assistance Program (SNAP).\16\ Respectively, these programs are
under the jurisdiction of the Committee on Agriculture and
Committee on Energy and Commerce. Spending on these programs
has not returned to pre-recession levels and there are still
millions of Americans disconnected from work.
---------------------------------------------------------------------------
\16\Characteristics and Financial Circumstances of TANF Recipients,
Fiscal Year 2016, Table 11: TANF Families by Public Assistance program,
U.S. Department of Health and Human Services.
---------------------------------------------------------------------------
Further, the idea that additional funding is needed to fix
a program that has essentially become a welfare program for
states trying to fill budget holes is confounding and overly-
simplistic. This legislation is focused on making meaningful
reforms to restore accountability and re-claim dollars already
being spent to delivering meaningful, lasting results that move
people off of welfare and into the workforce.
The one exception involving additional funding is for child
care. The Committee believes the TANF Contingency Fund, which
was intended to cover increased demands on for the underlying
block grant during economic downtowns, has become a slush fund
favoring a limited number of states. The FY 2019 President's
Budget recommends eliminating the Contingency Fund, saying:
``Recent experience has demonstrated that the Contingency Fund
is an ineffective mechanism for providing targeted response to
economic downturns.''\17\ Prior to that, the Obama
Administration's budgets called for repurposing the Contingency
Fund to support work as well. Instead of maintaining the
current Contingency Fund, the Committee bill would allow States
to set-aside 15 percent of their block grant as ``rainy-day''
funds for periods of increased demand for cash assistance and
services during economic declines in Section 17. In FY 2016,
all States except Wyoming qualified for dollars from the
Contingency Fund, but only 19 States received funds. Among
those that received funds, 10 States had unemployment rates
below the national average of 4.9 percent including 3 states
with unemployment rates lower than 4 percent.
---------------------------------------------------------------------------
\17\Justification of Estimates for Appropriations Committees,
Administration for Children and Families, U.S. Department of Health and
Human Services, FY 2019.
---------------------------------------------------------------------------
The following states received TANF Contingency Funds in FY
2016:\18\
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\18\TANF Contingency Fund Awards, 2016, U.S. Department of Health
and Human Services.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The Committee believes a more effective use of the
Contingency Fund would be to support employment among low-
income working families by providing expanded access to child
care for those receiving TANF assistance. The Committee
strongly believes in promoting two-parent households and
continued responsibility when a parent is outside the
household, but also recognizes for many families child care is
an important work support. It is the Committee's intent to
ensure spending from already appropriated money is geared
towards actually moving people off of welfare and into work,
and the Committee believes shifting the use of these funds will
help better accomplish that goal.
Using the more than $600 million per year currently spent
through the Contingency Fund to increase child care through the
Child Care Entitlement to States accomplishes two additional
goals. First, it provides accountability and transparency
involving the use of funds, including by better identifying the
number of children being served and ensuring child care
provided meets basic health and safety protections. Under
currently law, Contingency Funds are only reported by spending
category, providing no details about how the dollars are
actually spent or what families are being served. Second, it
provides fair access to the funds through the child care
formula for all states and low-income families across the
country, rather than a select group of states who have figured
out how to draw down funds before others.
Effective date
The provision is effective on October 1, 2018.
Section 6: Expecting Universal Engagement and Case Management
Present law
Each state is required to conduct an employability
assessment for each TANF assistance recipient who: (1) has
attained 18 year of age, or (2) does not have a high school
diploma (or equivalent) and is not attending secondary school.
The state must assess the skills, prior work experience, and
employability of each recipient.
Based on the employability assessment, the state, at its
option, may develop an individual responsibility plan (IRP) for
the individual. The IRP is designed to move individuals to
obtain and keep employment in the private sector. The state
must consult with the individual in the development of the
plan. The IRP sets forth an employment goal, obligations of the
individual, and services the state will provide to the
individual, and may require the individual to undergo
appropriate substance abuse treatment.
In addition to any other penalties, the state may reduce
assistance, by the amount the state considers appropriate, to a
family with an individual who fails without good cause to
comply with an IRP. The state has sole discretion in the
exercise of authority regarding the IRP.
Explanation of provision
The Committee bill requires states to conduct an assessment
for each work-eligible individual receiving assistance. The
definition of who is ``work-eligible'' is the same as the
definition in existing TANF regulations promulgated by the
Department of Health and Human Services (HHS). Each work-
eligible individual must have an assessment of her or his
education, skills, prior work experience, work readiness, and
barriers to work. Additionally, the assessment is to consider
the well-being of the children in the individual's family and,
where appropriate, activities or resources (including those
funded by the Maternal, Infant, and Early Childhood Home
Visiting program) to improve the well-being of the children.
Based on the assessment, states are required to develop an
Individual Opportunity Plan (IOP). The plan must be developed
in consultation with the individual and must be signed by the
individual. The plan must include:
a personal responsibility agreement, in
which the individual acknowledges receipt of publicly-
funded benefits and responsibility to comply with
program requirements in order to receive the benefits;
the obligations of the individual to
participate in work activities, and the number of hours
per month for which the individual will so participate,
consistent with the hours required by the present law
work participation standard (e.g., 20 hours per week
for a single parent with a child under the age of six,
30 hours for other single parents, and higher hours for
two-parent families);
an employment goal and planned short-,
intermediate-, and long-term actions to achieve the
goal, which, in the case of an individual who has not
attained 24 years of age and is in secondary school or
the equivalent, may be completion of secondary school
or the equivalent as an intermediate action toward an
employment goal; and
the job counseling and other services the
state will provide to the individual to enable the
individual to obtain and keep employment in the private
sector.
The IOP may include referral to appropriate substance abuse
or mental health treatment.
The assessment and the IOP must be completed within 60 days
of the individual's becoming eligible for assistance. Further,
a meeting with the work-eligible individual must occur not less
frequently than every 90 days to review the IOP, discuss with
the individual progress made toward meeting the goals of the
plan, and to update the plan as necessary. For those already
receiving assistance on the date of enactment, the assessment
and the plan must be completed within 180 days. The JOBS
universal engagement provision retains TANF's language
permitting a state to sanction individuals who fail to comply
with their IOP.
Reason for change
Expecting work in exchange for benefits is a foundational
principle of this Committee's work on welfare reform and a
pillar of the 1996 reform efforts that created TANF. The
expectation in current law is that states must engage 50
percent of individuals in work activities. This legislation
sets forth the expectation that states engage all work-eligible
individuals in work activities through universal engagement and
case management.
There are two important levels of accountability from which
to view the structure of the JOBS program. The first is at the
individual level and the second is at the state level. These
policies are complementary and inter-related.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Universal engagement and case management are about the
covenant between the family seeking help and the caseworker, on
behalf of the government, and that both sides will do their
part to help each family earn their own success. It places a
value on case management practices focusing on people, not
programs, and, while promoting work, acknowledging and
potentially addressing underlying challenges that could be
holding a family back.
Case management is not about checking boxes and pushing
paper. The human connection is pivotal. One witness at our Jobs
and Opportunity hearing series, Heather Terenzio, an employer
from Boulder, Colorado who started the first-ever software
apprenticeship program, said ``If someone comes alongside that
disengaged person--coaches them, believes in them--all that
doubt washes away and they can be successful.''\19\ Another
witness, Jennifer Meek-Eells, executive director of a workforce
development board in Canton, Ohio, said ``Case managers need to
be able to connect and help people set goals, think about the
future and set small steps that show them they can be
successful and that there is a path forward. Case management
means engaging participants in meaningful employment and
training activities that can help them build lifelong,
sustainable careers.''\20\
---------------------------------------------------------------------------
\19\Hearing on Jobs and Opportunity: Local Perspectives on the Jobs
Gap, Committee on Ways and Means, Subcommittee on Human Resources,
April 12, 2018.
\20\Hearing on Jobs and Opportunity: Legislative Perspectives on
the Jobs Gap, Committee on Ways and Means, Subcommittee on Human
Resources, May 9, 2018.
---------------------------------------------------------------------------
Under this section, within 60 days of being approved for
assistance in the JOBS program, states are to provide each
work-eligible individual an opportunity to sit down with a case
manager to develop an individual opportunity plan. For
individuals who are already receiving assistance as of the
effective date of this bill, states are provided six months to
comply with this provision. According to the Congressional
Research Service, the number of work-eligible individuals
receiving TANF assistance in FY 2016 was approximately 732,000
nationwide.\21\ The Committee believes given this relatively
low number (i.e., estimates suggest that there are between 9.5
and 11 million work-capable adults receiving SNAP)\22\ this is
an appropriate timeframe for compliance.
---------------------------------------------------------------------------
\21\``TANF work-eligible individuals by state,'' Congressional
Research Service memo from Gene Falk to House Subcommittee on Human
Resources, May 22, 2018.
\22\``Employment Requirements in Benefit Programs Needed to Reduce
Poverty,'' Statement before the House Committee on Education and
Workforce, Robert Doar Morgridge Fellow in Poverty Studies, American
Enterprise Institute, March 15, 2018.
---------------------------------------------------------------------------
This initial meeting should include an up-front,
transparent discussion of the expectations for that individual
to continue receiving assistance. Individuals must sign a
personal responsibility agreement acknowledging and providing
their consent and understanding of what is expected of them and
consequences for failing to meet program requirements. This
includes informing the individual of the number of hours per
week of work activities they are expected to complete pursuant
to section 407(c) of the Social Security Act.
Case managers are then to conduct an assessment to
determine the education, skill level, and strengths of the
individual to inform development of the individual opportunity
plan. The plan should be developed jointly and oriented toward
consideration of short and intermediate steps the individual
needs to take toward the ultimate goal of obtaining a job. The
expectation is that states will document in the plan the
activities the individual will engage in to meet the minimum
hourly work requirement pursuant to section 407(d) of the
Social Security Act. The individual opportunity plan is to be
reviewed at least every 90 days to re-visit whether such
activities continue to be appropriate, whether they need to be
modified, and to determine progress toward goals. This review
should also include re-verification of client eligibility,
including household income and assets.
Development of individual opportunity plans should take
into account any services needed to support the family
holistically, including access to child care, or in the case of
pregnant or new mothers, making connections with the Maternal,
Infant, and Early Childhood Home Visiting program in Title V of
the Social Security or other programs aimed at improving birth
outcomes, reducing risks associated with infant mortality,
improving the well-being of children, and increasing economic
self-sufficiency, defined as employment. For individuals who
are determined to have mental health or substance abuse
problems, the plan may include appropriate referrals to
behavioral, mental health, or other professionals that provide
treatment. For individuals under the age of 24, emphasis should
be placed on completion of high school or obtaining a GED as an
important first step toward finding lasting employment.
The expectations for case managers serving individuals in
the JOBS program is greater than under current law. High-
quality interactions between caseworkers and clients are the
linchpin to helping individuals succeed in the workforce.
States should be purposeful and thoughtful about how they
transition to more meaningful case management practices
required under this bill. This may include re-visiting hiring
processes related to the necessary qualifications of case
managers, establishing manageable client caseload ratios, and
providing case managers access to training on topics such as
how to effectively conduct a needs assessment, coaching,
family-centered practices, and goal setting. To reiterate a
theme that will appear throughout this report, the JOBS program
should be operating collaboratively in conjunction with other
state, federal, faith-based, private, and charitable
organizations and programs serving low-income families and
children. Therefore, case managers need to be experts in their
local community resources and have an awareness of
organizations and programs, such as food pantries, health
clinics, and job centers, that serve families so they can
appropriately connect individuals to additional services they
may need.
In implementing this section, states may choose to take a
performance-based contracting approach that relies on non-
profit agencies and community-based organizations to provide
case management for individuals in the JOBS program and holds
those contractors responsible for the same employment,
retention and earnings outcomes that the state is responsible
for meeting. While there are a number of ways states and
localities will choose to implement this aspect of the program,
the important thing is case management practices and
coordination of existing resources is recognized as key to the
program's success.
Effective date
These provisions are delayed for an additional six months
beyond the effective date of October 1, 2018 for funding.
Section 7: Promoting Accountability by Measuring Work Outcomes
A. PERFORMANCE STANDARDS FOR STATES
Present law
Each state is required to have ``engaged in work'' a
minimum percentage of its assisted families who include a work-
eligible individual. This percentage is known as the minimum
work participation rate (WPR). The minimum WPR is a performance
standard that applies to the state, not directly to work-
eligible individuals. The standard applies to the combined
number of families in TANF and in separate state programs if
they have expenditures countable toward the TANF state spending
(``maintenance of effort'' or MOE) requirement. There are two
standards a state must meet: one with respect to all families
and another with respect to two-parent families. For all
families, the minimum WPR is 50 percent minus the state's
caseload reduction credit. For two-parent families, the minimum
WPR is 90 percent minus the state's caseload reduction credit.
The caseload reduction credit represents a percentage point
reduction in the statutory minimum percentage of families a
state must have engaged in work (either 50 or 90 percent) equal
to the percent change in the caseload from FY 2005 to the prior
fiscal year. The credit disregards the impact on the caseload
from changes in state policy since FY 2005. Additionally, HHS
regulations allow states to count as caseload reduction
families aided by state MOE funds spent in excess of the
minimum amount of state spending required under the MOE.
The actual WPR a state achieves is the (simple) average for
each month of the fiscal year of the number of families with a
work-eligible individual determined to be ``engaged in work''
during the month divided by the number of families with work-
eligible individuals who are not disregarded from the
calculation of the WPR. Separate WPRs are computed for all
families and for two-parent families. States have the option to
disregard the following families with a work-eligible adult
from the computation of the WPR:
Families composed of a single custodial
parent caring for a child under the age of 1 year. This
disregard is limited to 12 months in a lifetime; and
Families receiving assistance from a tribal
TANF program or tribal work program.
States are required to disregard families that are subject
to a sanction for refusing to participate in work activities.
The disregard is limited to 3 months during the preceding 12
months.
A state with a WPR less than its minimum requirement (after
the application of the caseload reduction credit) is at risk of
having its TANF grant reduced. The maximum penalty for the
first failure to meet the work participation standard is a
reduction of 5 percent of the state's family assistance grant.
For each subsequent failure, the penalty is increased by a
maximum of 2 percentage points. HHS may reduce the penalty
based on the degree of noncompliance, if the state is an
economically needy state as defined for the contingency fund,
or because of extraordinary circumstances. Under HHS
regulations, the penalty for failure to meet the two-parent
standard is pro-rated to the share of a state's total caseload
that represents two-parent families. The penalty on the state
may be waived for good cause. A state that does not meet its
minimum WPR may also enter into a corrective compliance plan,
and have the penalty waived if it subsequently met its minimum
standard.
Explanation of provision
The Committee bill replaces the minimum WPR with outcome
measures for purposes of state accountability. However, it
maintains the current rules for being considered ``engaged in
work''--in terms of work activities and hours--and applies them
directly to work-eligible individuals through their Individual
Opportunity Plan (IOP).
The Committee bill establishes outcome measures to provide
accountability for state JOBS programs. It requires HHS to
establish a system to assess outcomes, based on measures used
in the Workforce Innovation and Opportunity Act (WIOA) system.
The Secretary of HHS and each state will jointly establish
performance levels for the outcome measures, taking into
account levels in other states, adjusted among the states for
differences in economic conditions and caseload
characteristics. The performance levels must also promote
continuous improvement. The outcome measures are:
1. The job entry rate, defined as the percent of
individuals who were work-eligible individuals at the
time of exit and who were in unsubsidized employment in
the 2nd quarter after exit;
2. The job retention rate, defined as the percent of
individuals who were work-eligible individuals at the
time of exit and who were in unsubsidized employment in
both the 2nd and the 4th quarter after exit;
3. The earnings measure, defined as the median
earnings of individuals who were work-eligible
individuals at exit and were in unsubsidized employment
during the second quarter after exit; and
4. The high school completion rate, defined as the
percent of individuals who were work-eligible
individuals at the time of exit, were under the age of
24, lacked a high school diploma or equivalent when
they entered the program, and received a high school
diploma or equivalent while they received JOBS
assistance.
An ``exit'' is defined as ceasing to receive JOBS
assistance or ceasing to participate in a JOBS-funded
subsidized job program (including apprenticeships). States in
which JOBS is a partner in the WIOA ``one-stop'' system have
the option to establish an alternative definition of ``exit''
to align that definition with that in other workforce programs.
In addition to separate performance measures, a composite
measure of performance is computed by combining information as
follows: 40 percent is based on the job entry rate, 25 percent
is based on the job retention rate, 25 percent is based on the
earnings measure, and 10 percent is based on the high school
completion rate. In assessing annual performance, these
measures are to be statistically adjusted (as in WIOA) for
changes in economic conditions and caseload characteristics.
States that fail to meet performance targets for the
outcome measures described in this section are subject to the
same penalty outlined at section 409(a)(3) of the Social
Security Act. As stated above, the maximum penalty for the
first failure is a reduction of 5 percent of the state's annual
family assistance grant. For each subsequent failure, the
penalty is increased by a maximum of 2 percentage points per
year.
Reason for change
This section replaces the work participation rate, and
instead establishes outcome measures as the primary state
accountability mechanism in the JOBS program. For the first
time, the federal government will hold states financially
accountable for achieving actual results helping parents to get
and keep a job.
The current work participation rate structure is plagued by
gaming and loopholes that states have become increasingly adept
at taking advantage of over the years. This accountability
mechanism has essentially been vitiated by provisions built
into the law that had the well-reasoned intent of incentivizing
states to reduce caseload and invest more of their own state
funds into the program. These ``credit'' mechanisms have
allowed 18 states to reduce their required work participation
rate to zero. Only 11 states actually have an effective work
participation rate of 50 percent established in current law.
Because the measure is based on work activity while an
individual is on the program, states have also gamed the rate
using what is referred to as ``small checks'' or ``earnings
supplement programs.'' For example, states use TANF dollars to
provide ``assistance'' checks in small amounts to individuals
receiving SNAP who are already working. These states are
artificially providing a nominal amount of assistance to
individuals who would not otherwise be on the caseload, for the
sole purpose of meeting the work participation rate. This
perverse gaming of program rules is hardly what the authors of
the 1996 welfare reform law had in mind.
Further, meeting the work participation rate in many states
has devolved into a pro-forma exercise where TANF funds are
used to contract with for-profit providers to create ``work
experience'' programs, many of which amount to sheltered
workshops where clients are given menial tasks disconnected
from the skills needed in the job market. TANF dollars are used
to pay outside contractors that specialize in developing and
running these programs for the sake of being able to more
easily ``count'' recipient hours toward meeting the work
participation rate with little to no regard for actual
employment-readiness needs of individual recipients.
The Committee's conclusion is that the current
accountability mechanism is not salvageable, nor is it
consistent with the Committee's desire to hold states
accountable for whether individuals get a job and keep a job.
Instead of process measures that focus on taking attendance and
counting participation in activities, the Committee bill adopts
outcome measures including job entry, job retention, median
earnings, and high school completion after an individual ceases
to receive assistance. These measures establish the goal of
helping individuals achieve permanent independence from
assistance, rather than continuously cycling on and off the
program.
The four outcome measures adopted in this section are
similar to those adopted by the workforce system under the
Workforce Innovation and Opportunity Act (WIOA, P.L. 133-78).
The four indicators measure whether an individual that formerly
received a JOBS benefit is: (1) in unsubsidized employment in
the 2nd quarter after exit (i.e., 6 months after leaving the
program); (2) in unsubsidized employment in the 2nd and 4th
quarter after exit (i.e., is employed both 6 months and a year
after leaving the program, which does not have to be with the
same employer); (3) median earnings of the individual who is in
unsubsidized employment in the 2nd quarter after exit (placing
a value on job quality); and (4) for individuals receiving a
JOBS benefit who are under 24 years of age, whether they
complete high school or its equivalency either while continuing
to receive benefits or within one year after leaving the
program. The 4th measure, high school completion or equivalency
(i.e., GED), is particularly important given that nearly 40
percent of TANF recipients do not have a high school
diploma.\23\
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\23\Characteristics and Financial Circumstances of TANF Recipients:
TANF Adult Recipients by Educational Attainment, FY 2016, Table 20,
U.S. Department of Health and Human Services.
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The Committee seeks to better align the JOBS program with
programs that make up the workforce system in order to better
leverage existing resources and connect individuals receiving
assistance to employment opportunities. The passage of WIOA in
2014 made TANF a mandatory partner with American Job Centers
(formerly one-stops) and prioritized services for low-income
individuals receiving public assistance and out-of-school
youth, creating overlap in the populations served. The primary
purpose of WIOA is to ``increase, for individuals in the United
States, particularly those individuals with barriers to
employment, access to opportunities for the employment,
education, training, and support services they need to succeed
in the labor market.''\24\ The Committee has embraced similar
goals in drafting this legislation.
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\24\P.L. 113-128.
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The WIOA workforce system is run through local Workforce
Development Boards which act as a broker between employers in
the community and job seekers and work to promote economic
growth. Workforce Boards have the express purpose of developing
expertise in the local labor market and in-demand jobs--by
developing relationships with businesses in the community in
order to understand what types of training and skill sets
employers need. In addition, American Jobs Centers have the
core principles of one stop service delivery, co-location of
services, and access to partner organizations, including
community colleges and career technical centers. All of these
attributes make WIOA an important partner. Adopting similar
outcome measures can help facilitate better collaboration.
Program administrators that have shared goals are more likely
to share resources and expertise.
In addition, the bill promotes alignment with the workforce
system by: (1) allowing states that have included TANF as a
mandatory one-stop partner (WIOA provides state governors the
ability to opt out) to adopt common exit measures for the JOBS
program and other WIOA-funded programs to promote co-
enrollment; and (2) allowing states to transfer funds from the
JOBS program (up to 50 percent) to WIOA Title 1 employment and
training programs to better leverage resources across programs.
States that transfer funds must provide assurances those funds
will be used to serve JOBS-eligible participants and may
reserve up to 15 percent for statewide workforce investment
activities, with the remainder to be distributed to local
Workforce Development Boards. The intent of the Committee is
that the expertise and capacity developed in these respective
programs will be used in coordination to connect individuals
receiving JOBS benefits (and other forms of public assistance)
to in-demand jobs in their local communities.
The advantage of an outcome-based performance system is
measuring and getting more of the desired outcome--in this
case, work. The two main criticisms of an outcome-based
performance measurement system are that it incentivizes
``creaming'' (i.e., only allowing the most likely to succeed to
enter your program) and never exiting a person (letting them
sit on the program indefinitely because states don't think
they'll show up as a positive in their outcome measures). The
Committee bill anticipates these policy hazards (in no small
part through studying what has been learned from implementation
of the WIOA measures) and seeks to address both.
First, the bill requires HHS to apply a statistical
adjustment model when negotiating performance outcomes with
states. Targets are set based on the characteristics of each
state's caseload. The model will adjust state targets based on
the number of barriers to employment reflected in the caseload
demographics. States that seek to ``cream'' or avoid the
hardest-to-serve will have higher targets to meet. As for the
hazard of never ``exiting'' people, this is countered by the
fact there remains a 5-year federal time limit for receiving
assistance (in fact 16 states have imposed a stricter time
limit of 3 years or less).\25\ In addition, states wishing to
game the system in this manner face a significant opportunity
cost that includes continuing to pay the family a check every
month and prolonging the state's responsibility to engage with
the recipients and monitor the individual opportunity plan
every 90 days.
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\25\``State Welfare Reforms: TANF Time Limits by the Numbers,''
Council of State Governments, June 2, 2016.
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The intent of the Committee is that HHS will issue
regulations through notice and comment rulemaking to establish
the operation of this new performance accountability system
using the measures and weights described in the bill. HHS is
provided two years to issue regulations and FY 2020 is
identified as a baseline year to be used to establish targets
for each performance measure in succeeding fiscal years. The
bill does not specify federal benchmarks or targets because
there is recognition that a ``one size fits all'' approach to
measurement would fail to take into account state demographic
and caseload characteristics or changes over time in state
economies that impact the ability to get people into jobs.
While variation is allowed among states, the Committee expects
the benchmarks to account for how the levels compare with other
states and to promote continuous improvement. In the interim
period between the effective date of this legislation and FY
2021, which will be the first year in which states are subject
to a penalty for not meeting performance benchmarks, the
Committee expects HHS to suspend any existing corrective
compliance or penalty determinations related to the work
participation rate.
The expectation is HHS will work in close collaboration
with the Department of Labor (DOL), which oversees WIOA, to
learn from what has already been done. DOL negotiates
performance levels for outcome measures in the workforce system
every three years with all the states. They do this through ten
regional DOL offices located throughout the country. HHS has
the same regional office structure that could accommodate this
process. As part of the negotiating process, states must be
able to provide sufficient data and justification using
rigorous analysis of the latest data available to inform
proposed targets for each of the measures. HHS and DOL should
work collaboratively to exchange information and, to the extent
possible, align processes and procedures for negotiating
performance targets with states.
Effective date
The provision is effective on October 1, 2020.
B. PUBLICATION OF OUTCOME MEASURES
Present law
HHS is required to submit an annual report to Congress that
includes the work participation rates states have achieved. (In
practice, HHS typically posts on its website work participation
information in advance of the full annual report to Congress.)
Explanation of provision
The Committee bill requires HHS to operate a website with a
regularly updated dashboard that profiles each state JOBS
program, including information on: (1) the established
performance measures for each state, (2) levels of performance
achieved by each state, and (3) information on the adjustments
to the performance measures for caseload characteristics or
economic conditions for each state. The dashboard will also
include information for each state's caseload characteristics,
including information on child-only cases; hours of
participation in work activities; information from an improper
payment review; links to JOBS state plans; and any penalties
assessed on the state.
Reason for change
The Committee bill maintains current law sanctions for both
states and individuals, but it also introduces a higher degree
of transparency and accountability into the $30 billion per
year program. Currently, only general spending categories are
reported on the financial reporting form, which makes it
difficult to understand how spending is associated with
improved results or better outcomes for individuals. The
Committee believes increased transparency using an easy to
understand performance grading system compliments the existing
penalty process and acts as a strengthened joint accountability
mechanism.
Many federal, state, and local government agencies use
dashboards both for internal organizational management and to
disseminate performance measures for transparency and
accountability. A dashboard provides a visual display of the
more important information needed to assess agency competency
at achieving objectives, and can be consolidated and tracked
over time. It also provides the ability to integrate data from
different sources, including expenditure, administrative, and
performance data to see how those elements fit together as a
whole. This makes it easier for the general public, employers,
and lawmakers to understand otherwise disparate sets of complex
data, boiled down into coherent information that can help
inform a range of decisions.
As indicated in the prototype diagram below, the JOBS
performance dashboard will include information for each state
about whether the state met, exceeded, or failed each
performance measure and an overall grade for aggregate
performance. It will also show the percent of individuals on
the caseload with zero hours of participation in work
activities and reasons for non-activity. Currently, nearly 40
percent of work-eligible individuals receiving assistance are
not participating in any hours of work activity. The dashboard
includes information on the number of child-only cases
receiving benefits (which have no work requirement or time
limit) and the reason why a case is child-only. In addition, as
described in Section 10, the dashboard will include information
on the results of improper payments case file reviews,
including types of errors associated with improper payments. It
also includes a link to the state plan, which includes the
documentation and justification for policies and procedures,
including any additional work activities identified by states,
many of which are the subject of section 14.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
By highlighting these particular data points, the Committee
intends the dashboard will drive states to seek to improve
these aspects of the JOBS program as those of the greatest
importance and strategically excludes those that are not part
of the program's core purposes. The Committee does not believe
any additional legislative actions need to be taken at this
time to impose penalties related to these data elements (apart
from the outcome measures which are subject to the 5 percent
penalty in existing law), but does recommend additional
sanctions be considered in future reauthorizations if
performance is not at acceptable levels.
The legislation provides a set-aside of \1/4\ of 1 percent
of program funds for the Administration for Children and
Families at HHS to develop and manage the dashboard, with the
expectation that the agency will use the best evidence
available given what has been learned from other government
websites about what works to effectively communicate these
types of data, including ensuring users can easily navigate the
dashboard. This also establishes the expectation the dashboard
is updated to reflect the most current information, and data is
available to establish a record of performance over time and to
make historical comparisons.
Effective date
The provision is effective on October 1, 2018.
C. ENGAGEMENT IN WORK ACTIVITIES
Present law
To be counted toward meeting the state's minimum work
participation rate (WPR), a work-eligible individual must meet
the criteria for being ``engaged in work.'' To be considered
engaged in work, a work-eligible individual must participate
for a minimum number of hours (discussed below) in one or more
of the following work activities:
1. unsubsidized employment;
2. subsidized private sector employment;
3. subsidized public sector employment;
4. work experience;
5. on-the-job training;
6. job search and job readiness activities;
7. community service programs;
8. vocational educational training (not to exceed 12
months);
9. job skills training directly related to
employment;
10. education directly related to employment for
those without a high school degree or equivalent;
11. satisfactory attendance at a secondary school,
for those without a high school degree or equivalent;
and
12. provision of child care services to an individual
in a community service program.
The Deficit Reduction Act of 2005 (P.L. 109-171) required
HHS to ``define'' each of the listed activities and there is
currently a regulatory definition for each of these activities.
There are statutory limitations on counting participation
in some of these activities toward a state meeting its minimum
WPR. Specifically, an individual may be counted as ``engaged in
work'' through job search for up to 6 weeks in a 12-month
period, or 12 weeks in such a period if the state meets certain
criteria of high and increasing unemployment and Supplemental
Nutrition Assistance Program (SNAP) caseloads. Further, an
individual cannot be counted as participating in job search in
a week that follows 4 consecutive weeks of job search
participation. An individual can be considered participating in
job search for part of a week, 3 or 4 days, only once in a
fiscal year.
To be considered ``engaged in work'' for the all-family
WPR, single-parent families with all children aged 6 and older
and two-parent families must participate in activities for at
least 30 hours per week. Of those 30 hours per week, at least
20 hours per week must be in ``core'' activities: unsubsidized
employment, subsidized private sector employment, subsidized
public sector employment, work experience, on-the-job training,
job search and readiness, community services and vocational
educational training. A state may deem a single parent caring
for a child under age 6 ``engaged in work'' if the recipient is
engaged in activities for at least 20 hours per week. For such
families, all hours must be in core activities.
For the two-parent WPR, both parents may combine their
hours of activities to meet the requirement for being
considered ``engaged in work.'' For two-parent families who do
not receive federally-funded child care, the parents must
participate at least 35 hours per week (with 30 hours per week
in ``core'' activities); for two-parent families who receive
federally-funded child care, the parents must participate at
least 55 hours (with 50 hours in core activities).
A state is required to reduce the benefit of a family who
receives TANF assistance if an individual in the family refuses
to engage in work in accordance with the work participation
standard. The sanction must be at least a pro-rata reduction in
the benefit, or a greater reduction, including termination of
the family's entire benefit, as determined by the state. States
may not sanction a family if there is good cause (determined by
the state) or any other exception the state has developed.
Explanation of provision
While the WPR is eliminated, the Committee bill maintains
rules for being considered engaged in work. These rules are
applied to work-eligible individuals through the IOP.
The Committee bill retains present law's list of activities
that count toward meeting the work participation requirement,
with some modifications. It modifies the ``vocational
educational training'' activity to eliminate its limitation to
12 months, and renames it ``vocational and career and technical
education.'' It eliminates the durational limit for job search
and readiness. It modifies ``on-the-job training'' to add
``including apprenticeships'' to the activity. The Committee
bill adds an additional activity--``any other activity that the
State determines is necessary to improve the employment,
earnings, or other outcomes of a recipient.''
The Committee bill retains the total minimum hours per week
of participation for a recipient to be engaged in work (e.g.,
30 hours per week for single parents, 20 hours if the single
parent has a child under the age of 6). However, it eliminates
the requirement that a minimum number of those hours be in
certain activities. The Committee bill retains the current law
provision allowing work-eligible individuals who lack a high
school diploma and are under the age of 20 to be deemed engaged
in work if they make satisfactory progress toward a high school
diploma or equivalent or participate in education directly
related to employment for at least 20 hours per week.
The Committee bill retains TANF's requirement that a state
sanction a family of an individual who refuses to work, subject
to good cause and other exceptions determined by the state.
Reason for change
The Committee's bill did not change the minimum hourly work
requirement or the requirement that states sanction individuals
who fail to comply. Work-eligible individuals receiving
assistance are still expected to work in exchange for benefits.
Consistent with the bill's focus on universal engagement and
case management, the Committee believes it is important to
provide the necessary tools to caseworkers to assign the proper
mix of work activities to achieve the measured outcome of work.
Therefore, the bill allows states to define additional work
activities, which must be described in their state plan and are
subject to the approval of HHS. The bill also supplements two
of the activities in current law to clarify that
apprenticeships and career technical education are allowable
activities.
Under current law, caseworkers are often incentivized to
manage to a process to meet the work participation rate, which
is a process measure and not an outcome measure. Understanding
recipients' dynamic challenges and helping them build a path
forward is a human-resource-intensive activity. Pre-determined
limits that require caseworkers to do mathematical gymnastics
to match countable hours to assigned activities are
counterproductive and ineffective. For example, a number of
states have pointed to the rules that distinguish between core
and non-core activities as being particularly problematic and
have said such limitations lack the recognition that not all
family circumstances fit precisely into artificial timeframes
or one-size-fits-all approaches.\26\
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\26\``Center for Employment and Economic Well-Being: TANF at 20--
Time for Rational Changes,'' National Association of State TANF
Administrators, American Public Human Services Association, November
2016.
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The Committee is cognizant that providing states more
flexibility in assigning work activities as described in this
section does not come without risk, and is well aware of the
findings that promoted work activity changes in the Deficit
Reduction Act of 2005, P.L. 109-171, such as a report to the
Committee in August 2005 by the Government Accountability
Office (GAO).\27\ The Committee is measuring work outcomes and
therefore expects to see individuals engaged in activities that
directly promote work--and not bed rest, smoking cessation, or
other activities that do not have a work focus. It also hopes
States will have learned their lessons from the last round and
all will be watching.
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\27\Government Accountability Office. ``Welfare Reform: HHS Should
Exercise Oversight to Help Ensure TANF Work Participation is Measured
Consistently across States.'' GAO-05-821: August 2005. https://
www.gao.gov/assets/250/247482.pdf.
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This bill places a high value on case management. A case
manager sitting across from an individual in a welfare office
is in the best position to determine what activities, and mix
of activities over time, are most likely to promote success in
the workforce--not Congress or the rest of the federal
government. The Committee believes the federal role is to
expect results, measure outcomes, and let states and local
communities find the best way to get there. Further, the bill
puts in place significant ``checks'' against the risk that
comes along with additional state flexibility.
Universal engagement and measuring outcomes are two inter-
related policy provisions that reflect a ``push-pull''
accountability mechanism. The ``push'' is the fact the law
requires states to universally engage and assign 100 percent of
work-eligible individuals to a minimum number of hours per week
in work activities. In doing so, the bill also gives states
flexibility to assign activities that meet an individual's
needs and are most likely to get them job ready. This
additional flexibility is primarily checked by the ``pull''
policy, which is the bill measures outcomes when a recipient
leaves the program. States are incentivized, then, to put
individuals into legitimate, meaningful activities that lead to
the outcomes being measured getting a job and keeping a job.
States that fail to achieve these outcomes are subject to
penalty in the form of loss of federal funds.
In addition, the Committee bill includes several other
policies focused on transparency that act as a check on states
that might abuse this flexibility. These include:
1. States will be required to list any additional
work activities in their state plan, which HHS has
approval authority over and will be posted on their
state performance dashboard, and the hours individuals
are assigned to these activities.
2. States must comply with the Improper Payments
Information Act, which will require them to conduct
annual reviews of case files to determine compliance
with federal work requirements. Identified errors will
be posted on their state performance dashboard.
3. States will be required to report the percent of
their caseload that have reported zero hours of working
and reasons why also to be displayed on their
dashboard.
These policies seek to hedge against past abuses and gaming
that have failed within the current system.
Effective date
The provision is effective on October 1, 2018.
Section 8: Targeting Funds to Truly Needy Families
Present law
A state may use federal TANF grants in ``any manner that is
reasonably calculated'' to achieve TANF's statutory purpose and
goals: provide assistance to needy families with children,
reduce dependence of needy parents on government benefits,
reduce out-of-wedlock pregnancies, and promote the formation
and maintenance of two-parent families. Activities in providing
assistance and reducing dependency must be for ``needy
families,'' though states determine the financial eligibility
rules that constitute need. Activities to reduce out-of-wedlock
pregnancies and promote the formation and maintenance of two-
parent families are available for a state's entire population,
regardless of family structure and need.
A state may not expend more than 15 percent of its grant
award on administrative expenditures. Excluded from this limit
are funds used for information technology needed for tracking
or monitoring.
TANF permits up to 30 percent of the state family
assistance grant to be transferred to the Child Care and
Development Block Grant (CCDBG) and the Social Services Block
Grant (SSBG). This limit is reduced dollar for dollar by any
TANF funds used as matching funds for reverse commuter grants.
Within the total transfer amount, the law further limits
transfers to SSBG to 4.25 percent of the state family
assistance grant. However, annual appropriation bills have,
each year, increased this limit to 10 percent of the state
family assistance grant.
States are not required to transfer TANF funds to the CCDBG
in order to provide child care services. States may spend TANF
dollars on child care directly within state TANF programs or
via transfers to the SSBG. States may also spend TANF dollars
on child welfare services and activities, directly within state
TANF programs or via transfers to the SSBG.
States are required to expend from their own funds at least
75 percent (80 percent if a state does not meet its work
participation standard) of historic state expenditures.
Historic state expenditures are FY1994 spending in TANF's
predecessor programs. This is known as the ``maintenance of
effort'' (MOE) requirement. States may count their own
expenditures in any state program as long as it meets TANF's
general requirements regarding the types of benefits, services,
and activities that may be counted. In addition to state and
local government expenditures, under general rules of grants
management, states may count the value of third-party donated
services as state funds spent toward the MOE.
Explanation of provision
The Committee bill generally retains existing law, but adds
certain requirements regarding the use of federal JOBS grants
and state MOE funds. Principally, it prohibits federal and
state MOE funds from being used for benefits or services to any
families with incomes in excess of 200 percent of the Federal
Poverty Line (FPL).
The Committee bill retains the limit that no more than 15
percent of federal grants may be used for administrative
expenses and retains the exclusion of information technology
from that cap. It also excludes from this limit case management
activities to conduct assessments, and to develop, monitor
progress of recipients under, and revise Individual Opportunity
Plans.
The Committee bill prohibits direct spending within the
JOBS program on child care and child welfare services or
activities. States may use JOBS funds for these services and
activities by transferring them to the Child Care and
Development Block Grant (CCDBG) and to the Stephanie Tubbs
Jones Child Welfare Services program (CWS, Title IV-B, Subpart
1), subject to transfer limitations. The state may use 50
percent of the JOBS grant for combined transfers to CCDBG,
WIOA, and the CWS program. Transfers to CWS are limited to 10
percent of the JOBS grant. WIOA transfers are only permitted if
a state is a partner in the one-stop system (i.e., has not
opted out of being a partner). WIOA transfers must be spent on
JOBS-eligible families and no more than 15 percent of the
transfer may be withheld at the state level. The current
authority to transfer funds to the Social Services Block Grant
(SSBG) is eliminated.
Reasons for change
Proper targeting in social programs is a basic premise of
effective public policy, particularly for the purpose of
improving social welfare. The Committee believes a lack of
targeting in the TANF program has led to abuses over time and
funds should be focused on the truly needy. Therefore, the bill
puts a guardrail around the use of funds to limit benefits and
services to families with incomes under 200 percent of poverty.
This income eligibility limit applies to all benefits and
services, not just to those receiving basic assistance. All
states have lower income eligibility thresholds for families to
qualify for basic assistance that are significantly below 100
percent of poverty.\28\ However, only 24 percent of TANF funds
were spent on basic assistance to families in FY 2016.\29\ For
the remainder of the dollars, the only accountability mechanism
is that funds must meet one of the four TANF purposes. The four
purposes include:
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\28\Welfare Rules Data book: State TANF Policies as of July 2015,
Urban Institute.
\29\TANF and MOE Spending and Transfers by Activity, FY 2016, U.S.
Department of Health and Human Services.
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(1) Providing assistance to needy families with
children;
(2) Reducing dependence of needy parents on
government benefits;
(3) Reducing out-of-wedlock pregnancies; and
(4) Promoting the formation and maintenance of two-
parent families.
Current law purposes do not provide sufficient
accountability for state use of funds. There has been an
increasing awareness that ``meeting a TANF purpose'' is a
fairly subjective mechanism and has led to abuses as states
have sought to use TANF funds for programs that are arguably
only loosely related to one of these purposes. Examples include
using TANF funds to provide scholarships to middle class
families to attend private colleges and using TANF funds for
public education programs like statewide pre-kindergarten. This
bill affirmatively requires that all funds must be used for
families under twice the poverty level, regardless of whether
families are receiving assistance or receiving some other
supportive service or benefit funded by the program. For the
same reason, the bill also applies this guardrail to any state
expenditures that are claimed to meet the MOE requirement.
With regard to the bill's changes on transferring funds
from the block grant to other programs, the changes follow a
basic principle: TANF block grant funds that are used for
specific purposes in which there are already other federal
programs designed to meet those purposes must be transferred to
those respective programs.
Congress recently reauthorized the Child Care and
Development Block Grant (CCDBG), which is the nation's primary
program that provides access to child care for low-income
working families. The program has strong accountability
measures in place, including ensuring basic protections for the
health and safety of children in child care and background
checks for child care providers. Any TANF dollars a state
spends on child care that are NOT transferred to CCDBG
(approximately $1.3 billion in FY 2016) have no such
protections and there is no data available on the number of
children served by those funds. The bill would no longer allow
for this ``direct'' funding of child care outside of the rules
in CCDBG. That type of practice only acts to further exacerbate
the already fragmented and duplicative early care and education
system. GAO published a study last year that found not less
than nine federal programs support early learning or child care
and an additional 35 permit funds to be used to pay for child
care.\30\ This change in the bill is intended to increase
accountability in use of funds for child care and improve
alignment within the existing early care and education system.
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\30\``Early Learning and Child Care: Agencies Have Helped Address
Fragmentation and Overlap through Improved Coordination,'' Government
Accountability Office (GAO-17-463), Jul 13, 2017.
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To accommodate this change, the bill raises the cap on the
percent of TANF dollars that can be transferred to CCDBG from
30 to 50 percent. Raising the cap, and adding an additional
$600 million in entitlement funding for child care annually, is
a reflection of the Committee's recognition that child care is
a critical work support for low-income families.
Secondly, this same principle on transferring funds applies
to using TANF dollars for the provision of child welfare
services. Again, the Committee believes such funds should be
used within the framework of programs that Congress has already
created for funding child welfare. The bill requires any TANF
funds states wish to use for child welfare be transferred to
the program authorized under subpart 1 of Title IV-B of the
Social Security Act. The bill also places a 10 percent limit on
such transfers. This limit is a reflection of the fact that
Congress recently enacted the Family First Prevention Services
Act (P.L. 115-123) to provide foster care prevention funding
for substance abuse, mental health, and parenting services to
families with children at-risk of coming into foster care. The
cap acknowledges that there are existing resources already
dedicated to child welfare and JOBS program dollars should be
focused on supporting work.
Finally, the bill adds authority for states to transfer
funds to WIOA employment and training programs to promote
alignment with the workforce system. As discussed earlier in
this report, WIOA is an important partner in helping
individuals get and keep a job. The Committee's goal is to
leverage the strengths of this existing system, particularly
the local Workforce Development Boards and their link to
employers and in-demand jobs, to improve employment outcomes
for families receiving assistance. This policy allows states
the option to transfer funds to WIOA, up to the 50 percent cap,
to serve JOBS-eligible families. States may reserve 15 percent
of any transferred funds for statewide workforce activities and
the remainder is to be provided to Workforce Development Boards
to provide access to training and to facilitate job matching
and connections to the local labor market. The Committee's
expectation is that JOBS funds transferred to WIOA will be used
for services through co-enrollment in other workforce programs.
States have flexibility to place restrictions on what percent
of funds provided to local Workforce Development Boards can be
used for administrative activities.
Effective date
The provision is effective on October 1, 2018.
Section 9: Targeting Funds to Core Purposes
Present law
A state may use federal TANF grants in ``any manner that is
reasonably calculated'' to achieve TANF's statutory purpose and
goals. Under certain circumstances, a state may use TANF funds
for activities that were authorized under pre-TANF law even if
it is an activity that cannot be reasonably calculated to
achieve TANF's statutory purpose.
Explanation of provision
The Committee bill continues to permit spending for these
same purposes. However, it requires that at least 25 percent of
the state's federal JOBS grant and 25 percent of the state's
MOE spending be used for ``core activities'' which, under the
bill, are assistance, case management, work supports and
supportive services, wage subsidies, work activities and non-
recurring short-term benefits. Work supports are defined as
transportation benefits, tools, uniforms, fees to obtain
licenses, and work support allowances.
The Committee bill also phases out the ability of states to
count the value of spending from sources other than state or
local governments toward the JOBS MOE. In FY2020, expenditures
from sources other than state or local governments can account
for no more than 75 percent of MOE spending, with this limit
phasing down to 50 percent in FY2021, 25 percent in FY2022, and
0 percent in FY2023 and thereafter.
Reason for change
States are spending a combined $30 billion per year through
TANF and less than half those dollars are being spent on core
activities such as cash assistance, work, education, training,
or supportive services.\31\ Instead, as caseloads have dropped,
many states have diverted TANF funds to fill budget holes or
fund specialty programs that have little to do with supporting
work. The Committee strongly believes the taxpayer investment
in this program is meant to support work. The provision
requires at least 25 percent of funds be spent towards this
core objective--putting in place another guardrail to re-focus
federal and state dollars on helping welfare recipients move
into jobs.
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\31\TANF and MOE Spending and Transfers by Activity, FY 2016, U.S.
Department of Health and Human Services.
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Current law requires states must spend a certain amount of
state money (based on past state spending on low-income
programs) to receive full federal TANF block grant funds, which
is called the state ``maintenance of effort'' or MOE
requirement. However, recent reports from the nonpartisan GAO
indicate a rising number of states appear to be counting non-
state third-party spending as TANF MOE spending.\32\
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\32\Government Accountability Office. ``Temporary Assistance for
Needy Families: Update on States Counting Third-Party Expenditures
toward Maintenance of Effort Requirements.'' GAO-16-315: Published: Feb
10, 2016. Publicly Released: Mar 10, 2016. https://www.gao.gov/
products/GAO-16-315.
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For example, a number of states now count the supposed
value of volunteer hours as TANF MOE by multiplying volunteer
hours by an estimated wage rate and then reporting this as
``spending'' in the TANF program. This evolution has also
resulted in some states reporting significant ``excess MOE''
spending, which under a 1999 regulation allows states to reduce
the share of TANF recipients expected to work in exchange for
TANF benefits. This practice also allows states to reduce their
state investment in TANF, gaming the intent of the law's
requirements that states continue to invest in the program as a
condition of receiving federal funds.
The Committee believes the true intent of the MOE
requirement is to ensure there continues to be a contribution
from state and local government dollars as part of the state's
responsibility to provide services and support to low-income
families. Therefore, this provision gradually phases out
counting of any non-state or local government expenditures
towards the MOE requirement over a five-year period.
Effective date
The provision is effective on October 1, 2018.
Section 10: Strengthening Program Integrity by Measuring Improper
Payments
Present law
The Improper Payments Elimination and Recovery Act of 2010
(P.L. 111-204) requires federal agencies to take steps to
identify and reduce improper payments. Improper payments are
those that should not have been made or were made in an
incorrect amount. The Department of Health and Human Services
has indicated it lacks the authority to require states to
participate in TANF improper payment measurement.
Explanation of provision
The Committee bill requires states to apply the Improper
Payments Elimination and Recovery Act of 2010 to their JOBS
programs. It requires HHS to issue regulations within 2 years
to implement this provision.
Reason for change
Ending a longstanding inequity, HHS will be required to
report to the Office of Management and Budget an estimate of
improper payments for the JOBS program as part of the larger
government-wide effort to improve program integrity and reduce
waste, fraud, and abuse. HHS has indicated it lacks the
authority to compute improper payment rates for TANF in
accordance with the Improper Payments Elimination and Recovery
Act. The agency has argued that, since states design their own
programs and make their own rules, there is no way to
operationalize a national error rate. Yet there are a number of
state-administered federal programs, such as unemployment
insurance and the Child Care and Development Fund (CCDF)
program, which have developed methodologies for complying with
this Act and reporting improper payments.
The intent of the Committee is that HHS will regulate
through notice and comment rulemaking, and in consultation with
the Office of Child Care in the Administration for Children and
Families, to develop a process by which states are to conduct
such reviews including instructions for sample selections
relative to the size of the state, record and case file
reviews, development of standardized forms, and other key
pieces of information states must consider when conducting
reviews. HHS should also establish regulatory guidelines and
provide technical assistance to states to ensure improper
payments reviews are conducted in a similar manner across
states. HHS may choose to implement these reviews on a rolling
basis. For example, in the CCDF program the Office of Child
Care has divided states into three representative groups so
each state conducts the case file review once every three
years. The case review process should include reviewing a
sample of case files to assess whether eligibility was
appropriately determined according to state rules, benefits
were issued properly, and work-eligible individuals were
appropriately assigned work activities in accordance with state
and federal law, including whether such activities were
appropriately verified and tracked.
Effective date
The provision is effective on October 1, 2018.
Section 11: Prohibition on State Diversion of Federal Funds to Replace
State Spending
Present law
No provision.
Explanation of provision
The Committee bill requires that federal JOBS grants must
be used to supplement, not supplant, state general revenue
spending on the activities supported by state JOBS programs.
Reason for change
This provision requires that federal JOBS funding must be
used to supplement, not supplant, state general revenue funds.
As stated above, over time and as caseloads have declined, many
states have diverted TANF funds to fill state budget holes.
During a 2016 mark-up of several TANF bills, one Member
referred to state governments as being on ``the welfare dole.''
There is bipartisan recognition that states have taken
advantage of the loose rules governing TANF spending. The
Committee believes that adding this language restores
accountability by affirmatively stating that states may not use
federal funds to replace state and local spending on activities
and services for low-income families. This provision is
consistent with the bill's efforts to put in place guardrails
to make sure the dollars already being spent are achieving
their intended purpose supporting the success of American
families in work.
Effective date
The provision is effective on October 1, 2018.
Section 12: Inclusion of Poverty Reduction as a Core Purpose
Present law
The purpose of TANF is to increase the flexibility of
states in operating a program designed to achieve four
statutory goals. TANF's statutory purpose is both an
aspirational statement about the goals of the block grant and a
basis for how states may expend TANF funds. The four statutory
goals of TANF are to: (1) provide assistance to needy families
with children so that children can be cared for in their homes
or in the homes of relatives; (2) end the dependence of needy
parents on government benefits through work, job preparation,
and marriage; (3) prevent and reduce the incidence of out-of-
wedlock pregnancies and have states establish annual numerical
goals for reducing such pregnancies; and (4) encourage the
formation and maintenance of two-parent families.
Explanation of provision
The Committee bill adds to the present law purpose a goal
to reduce child poverty by increasing employment entry,
retention, and advancement of needy parents.
Reason for change
While the overall goal of TANF is to help low-income
individuals and families achieve self-sufficiency and improve
their lives, the program does not currently have an explicit
focus on reducing poverty. The Committee bill adds a new
purpose to TANF to explicitly recognize the best way out of
poverty is a job. This additional purpose is to reduce child
poverty by increasing employment entry, retention, and
advancement of low-income parents. This change will assist in
the overall purpose of the legislation to ensure states keep
the focus of the program on promoting work to help families
move up the economic ladder.
Effective date
The provision is effective on October 1, 2018.
Section 13: Welfare for Needs Not Weed
Present law
States are required to maintain policies and practices to
prevent TANF assistance from being accessed in Electronic
Benefit Transfer (EBT) transactions in liquor stores, casinos,
or adult entertainment establishments.
Explanation of provision
The Committee bill retains the current requirements and
adds establishments selling marijuana to the list of
establishments in which JOBS assistance cannot be accessed in
an EBT transaction. The provision is effective two years after
the date of enactment.
Reason for change
As of 2012, current law prohibits access to taxpayer-funded
welfare benefits for either purchases or withdrawals at ATMs in
strip clubs, liquor stores, and casinos. That common-sense
change was enacted with bipartisan support in 2012, and states
nationwide have begun implementing it in the past few years.
But with the advent of legalized pot sales in several states, a
``pot shop loophole'' has emerged that currently allows welfare
recipients to access taxpayer-provided welfare funds
electronically in stores that sell marijuana.
This provision does not comment on whether it makes sense
for states to legalize the sale of pot, as Colorado and
Washington have done. It simply says that, wherever pot is
legally sold, welfare recipients shouldn't be able to readily
access welfare funds to pay for it. This taxpayer money is
meant to support the basic needs of low-income families with
children, including reconnecting parents with work--not to
purchase marijuana.
Effective date
The provision is effective two years after the date of
enactment.
Section 14: Strengthening Accountability Through HHS Approval of State
Plans
A. STATE PLAN PROCESS
Present law
States are required to submit a TANF state plan every three
years as a condition of receiving block grant funds. Local
governments and private sector organizations are required to be
consulted regarding the plan so services are appropriate for
local populations and those entities are to have at least 45
days to submit comments. States must submit plan amendments
within 30 days after a state amends the plan. A summary of the
state plan must be publically available. States receive block
grant funds only if the Secretary of HHS certifies the state
plan is complete. Under the Workforce Innovation and
Opportunity Act (WIOA), states may submit their TANF plan as
part of a WIOA combined plan.
Explanation of provision
The Committee bill requires that the Secretary of HHS
approve a state's JOBS plan for the state to be eligible for a
grant. It also provides that a JOBS state plan is implemented
over a two-year period. It adds explicit language to the JOBS
statute that JOBS plans may be submitted as part of WIOA
combined plans.
Reason for change
The Committee bill establishes the state plan as an
important accountability mechanism and improves federal
administration of the program by providing HHS authority to
approve state plans. The plan also is to be used as the
mechanism by which states establish targets for the outcome
measures outlined in the bill and provide justification for
state policies. In keeping with the desire to create better
alignment with WIOA, the Committee bill allows states to submit
their JOBS plan as part of the WIOA combined plan process.
Effective date
The provision is effective on October 1, 2018.
B. STATE PLAN CONTENT
Present law
The state must submit a written document that outlines how
a state intends to: operate a program statewide, though not
necessarily in a uniform manner within the state; require
parents and caretakers to engage in work (as defined by the
state) within 24 months of receipt of assistance, consistent
with the requirement that child care be available; require
parents and caretakers to engage in TANF work activities (as
listed in law); take reasonable steps to restrict disclosure of
information of individuals and families receiving assistance;
establish goals and take action to reduce out-of-wedlock
pregnancies; conduct an education program for law enforcement
individuals on statutory rape; implement policies to prevent
electronic benefit transactions at certain establishments; and
ensure recipients of assistance have access to their benefits
with no or minimal fees and charges.
The state plan is also to contain a description of whether
the state intends to provide assistance to noncitizens; whether
it treats new migrants to the state differently than other
families; the objective criteria for the delivery of benefits
and services and determination of eligibility; and whether the
state intends to assist individuals to train for or seek
employment in long-term care facilities or providing elder
care. Unless the state opts out, the state must require
recipients of assistance to engage in community services after
receiving assistance for two-months. (The option for a state
not to require community service had to be taken within 1 year
of the enactment of the 1996 welfare reform law.)
The governor of the state must certify the state will
operate a child support enforcement program; will operate a
Title IV-E program for foster care, prevention, and permanency;
will provide equitable access to Indians in state TANF programs
if they are not eligible for tribal TANF; and has established
and is enforcing standards and procedures against fraud and
abuse and procedures concerning nepotism and conflicts of
interest. States must also certify that they consulted local
governments and private sector organizations.
The governor of the state may certify that the state has
established and is enforcing standards to screen for victims of
domestic violence, refer victims of domestic violence to
counseling and supportive services, and waive program
requirements, such as time limits. Domestic violence is defined
as physical acts that resulted in, or threatened to result in,
physical injury; sexual abuse; sexual activity involving a
dependent child; being forced to engage in nonconsensual sexual
activities; threats of, or attempts at, physical or sexual
abuse; mental abuse; neglect; or deprivation of medical care.
Explanation of provision
This section modifies state plan requirements to reflect
new policies and changes made by the Committee's bill. It
replaces the present law provisions related to work with three
plan elements. The state plan must:
describe the activities in which the state
will require work-eligible individuals to participate
in accordance with the JOBS work standard (activities
and hours);
describe its case management practices,
including the form used to assess work-eligible
individuals and prepare Individual Opportunity Plans
(IOPs) and how it will review individual progress under
the plan; and
include the proposed performance outcome
targets (job entry, job retention, wages, and
completion of high school or equivalent) in the JOBS
state plan.
The Committee bill also requires a JOBS state plan to
indicate whether the state intends to transfer any funds paid
to a program operated under WIOA, and shall include assurances
that all funds transferred will be used to support families
eligible for assistance and that not more than 15 percent of
the funds will be reserved for statewide workforce investment
activities. The state plan must indicate how JOBS will
coordinate with the one-stop delivery system and how the state
will coordinate to provide services to recipients of JOBS
assistance.
The Committee bill requires the JOBS state plan to describe
how the state will engage low-income noncustodial parents and
provide them with work supports. It also requires the JOBS
state plan to describe how the state allows for transitional
benefits for those receiving assistance who become employed.
This could include how the state counts and disregards earnings
for the purposes of eligibility and benefits in their
assistance programs. Additionally, the Committee bill adds to
the JOBS state plan a description of how the state will promote
marriage, such as through a temporary disregard of the income
of a new spouse; how the state will engage low-income
noncustodial parents paying child support and how such parents
will be provided with access to work supports; and how the
state will comply with the application of the Improper Payments
Elimination and Recovery Act to JOBS.
Reason for change
The Committee bill formalizes development and submission of
the state JOBS plan and updates this section to fold in new
changes made by other sections of this bill. The expectation is
HHS will develop a state plan template to standardize data
collection across each of these elements and provide guidance
to states in submission of the plan. HHS should design the
state plan with an eye toward usability and for purposes of
enabling the aggregation of data across states to use in
reporting on the implementation of certain policies, for
example in the department's annual Report to Congress.
To improve transparency, a link to the state plan is to be
included on each state's performance dashboard report, and the
plan is to be used as the primary mechanism by which HHS will
jointly negotiate performance targets for the outcome measures
included in this bill. Further, as described above, states are
to list any additional work activities in their plan, subject
to HHS approval, for purposes of the minimum hourly work
requirement and development of the individual opportunity plan.
The plan also improves transparency by asking states to
describe specific policies and procedures in key areas where
the Committee believes there is a need for targeted policy
consideration. This includes asking states to describe how they
will engage non-custodial parents identified by the custodial
parent through the mandatory cooperation requirement that
exists in current law. States must describe how such parents
will be provided access to work support and other services to
support their employment and advancement. TANF has
traditionally included a heavy focus on single mothers, but
TANF purposes speak to the responsibility of both parents--the
mother and the father. There are 5 million child support cases
that are not being collected likely because the non-custodial
parent is not formally working.\33\ Non-custodial parents,
often fathers, outside the home can receive the same work
supports through TANF that parents within the home do, but
there is significantly more that can be done. This plan
provision will compel states to think through these connections
and how they can better support both parents in their
transition to the workforce and strengthen families using JOBS
funding.
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\33\Office of Child Support Enforcement, Administration for
Children and Families, U.S. Department of Health and Human Services.
``Preliminary Report FY2017.'' Accessed June 6, 2018: https://
www.acf.hhs.gov/sites/default/files/programs/css/
fy_2017_preliminary_data_report.pdf.
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As a way to help more families transition off of
assistance, the plan also asks states to describe policies they
have in place to phase-out benefits over time, such as through
earned income disregards, as a family's income from wages
increases. Getting incentives right is an important part of
helping families achieve independence from assistance.
Anecdotally, some families report turning down a small wage
increase for fear of losing benefits that phase out as income
rises. Policies that provide for a transitional period can help
change this incentive structure and ensure that families that
choose work, and a pay raise, are better off for making that
choice.
Similarly, the plan asks states to describe policies in
place for when a recipient marries, such as through a temporary
disregard of the income of a new spouse, so the couple doesn't
automatically lose benefits due to marriage. Again, the
Committee's intent is to promote thoughtful state policies that
include positive incentives aimed at supporting work and
strengthening families.
Effective date
The provision is effective on October 1, 2018.
C. TECHNICAL ASSISTANCE
Present law
There is a set aside of 0.33 percent of the TANF
appropriation for research and technical assistance.
Explanation of provision
The Committee bill sets aside an additional 0.25 percent of
the JOBS appropriation to HHS to fund technical assistance to
the states and tribes. Technical assistance shall be provided
by qualified experts and grounded in scientifically valid
research. Technical assistance may also be provided to the
states and tribes on a reimbursable basis. These funds also
shall be used to publish the work outcome measures of state
performance.
Reason for change
The Committee bill sets aside one quarter of 1 percent of
the JOBS appropriation to HHS to fund technical assistance to
the states and tribes, specifically to support development and
maintenance of the state performance dashboard described in
Section 7.
Effective date
The provision is effective on October 1, 2018.
Section 15: Aligning and Improving Data Reporting
Present law
A state is required to collect data monthly and report data
quarterly to HHS on families and individuals receiving
assistance from TANF or separate state programs. Information is
also required on those exiting TANF or separate state programs.
A state has the option to comply with the TANF data collection
requirements using a sample of families receiving assistance,
rather than all such families. HHS is required to provide
states with case sampling plans and data collection procedures.
The statute specifies a number of data elements required to
be reported to HHS. The statutory data elements for each family
are: county of residence; number of family members; whether the
family received subsidized housing, Medicaid, Supplemental
Nutrition Assistance Program (SNAP) benefits, or subsidized
child care; the amount of assistance the family received; and
number of months the family received each type of assistance
under the program. The statute requires reporting of benefit
amounts of SNAP and child care received by the family. The
statutory data elements for each person in the family are:
receipt of disability benefits; ages; relationship to the
family head; race; educational level; unearned income received;
and citizenship. The statutory data elements for each adult in
the family are: employment status and earnings; marital status;
and whether the adult participated in certain activities. In
addition, the statute says that states must report information
necessary to compute the TANF work participation rate (WPR).
The statute gives HHS the authority to regulate the
definition of the data elements. HHS has added some additional
data elements regarding the WPR as well as months accrued
toward the 60-month time limit for adults in the family.
Explanation of provision
The Committee bill eliminates the state option to comply
with TANF data collection requirements using a sample of
families, requiring the state to submit information on each
family in its caseload. It requires each state to report
information on participation in work and job preparation
activities; activities to remove a barrier to employment; and,
if the work-eligible individual is not engaged in an activity,
the reason for lack of engagement. HHS is given the authority
to collect the data needed to compute employment outcomes, and
to make the statistical adjustment for the new JOBS performance
measures.
Reason for change
The Committee bill places a premium on transparency and
changes in the bill to data reporting reflect this priority.
Many states, particularly large states, currently submit sample
data this has the effect of limiting the accuracy of the data
in the sense of not providing a full and complete picture of
the number, characteristics, and demographics of individuals
served. In addition, as part of the implementation of the new
performance accountability system, this section of the bill
provides HHS authority to collect necessary data elements to
measure outcomes specified in section 7. Finally, this section
provides an affirmative requirement that states report on the
share of individuals with zero hours of participation--a data
element to be included on each state's dashboard, further
promoting transparency and accountability.
Effective date
The provision is effective on October 1, 2018.
Section 16: Technical Corrections to Data Exchange Standards To Improve
Program Coordination
Present law
The Department of Health and Human Services, in
consultation with the Office of Management and Budget, is
required to designate in regulation data exchange standards for
any information required to be reported under TANF. The data
exchange standard must, to the extent practicable, incorporate
a widely-accepted, nonproprietary, and searchable format; be
consistent with applicable accounting practices; be capable of
being upgraded; and incorporate existing nonproprietary
standards (such as XML).
Explanation of provision
The Committee bill makes technical corrections to present
law regarding data exchange standards, to conform the JOBS
language to that used for other programs.
Reason for change
The Committee was alerted by the Department of Health and
Human Services that the original version of this language,
enacted in 2012, was not consistent with the goal of improving
federal-to-state and state-to-state data exchanges that are
important to this state-administered program.
Effective date
The provision is effective on October 1, 2018.
Section 17: Set-aside for Economic Downturns
Present law
States and tribes may reserve unused federal TANF grants
for use in a later year without fiscal year limit. Reserved
funds may be used for any TANF benefit or service.
Explanation of provision
The Committee bill expects federal JOBS funds to be
obligated by the state within 2 years of the grant award and
expended within 3 years of the award. An exception to this rule
is that it allows a state to reserve up to 15 percent of its
JOBS grants for future use in the JOBS program.
Reason for change
The Committee believes that adding a guardrail around the
availability of funds will improve fiscal responsibility and
support the bill's overall focus on accountability in the
spending of program funds. Further, allowing up to 15 percent
of funds to be reserved for periods when there may be an
increase in the demand for resources, such as during economic
downturns, is designed to help states accommodate such
increased demands should these situations arise.
Effective date
The provision is effective on October 1, 2018.
Section 18: Definitions Related to Use of Funds
Present law
TANF has statutory definitions for: adult; minor child;
fiscal year; Indian, Indian tribe, and tribal organization; and
State. Some TANF terms are not defined. For example, the TANF
statute applies most requirements to families receiving
assistance but it does not define that term. In addition to the
statutory definitions, HHS defined certain terms in regulations
and for use in data reporting. HHS defined the term
``assistance'' in regulation as ongoing economic support to
meet basic needs. HHS has defined ``work supports'' for the
purposes of state reports of financial data as transportation
benefits, tools, uniforms, fees to obtain licenses, and work
support allowances. HHS regulations and guidance allow states
to define other terms, such as ``family.''
Explanation of provision
The Committee bill adds several statutory definitions to
the JOBS program. It defines assistance and work supports
similarly to the current usage of those terms in TANF. It adds
a definition of ``JOBS benefit'' to mean both assistance and
subsidized employment, including apprenticeships.
Reason for change
Several of these definitions are consistent with the
current regulatory definitions used by HHS. The new definition
of a JOBS benefit clarifies that an individual receiving
assistance who transitions to subsidized employment, such as
on-the-job training or apprenticeship, and as a result no
longer receives assistance, may still be considered as
receiving a benefit for purposes of making a determination of
when an individual ``exits'' the program and becomes part of
the denominator of the state's outcome measures. In this case,
a state is incentivized to support an individual's continuation
and success in subsidized employment and apprenticeship
programs as they transition to independence and unsubsidized
employment. The Committee's intent is that this definition also
clarifies ``receipt of a title IV-A benefit'' for purposes of
categorical eligibility determinations in the Supplemental
Nutrition and Assistance Program (SNAP).
Effective date
The provision is effective on October 1, 2018.
Section 19: Elimination of Obsolete Provisions
Present law
TANF law includes three grants that have expired and for
which there is no current funding. These are (1) supplemental
grants (last funded in FY2011); (2) high performance bonuses
(last funded in FY2005); and (3) welfare-to-work grants (last
funded in FY1999).
Explanation of provision
The Committee bill strikes the three expired grants and
associated provisions from the statute. It also eliminates the
TANF loan fund, which has not been accessed since FY2005. The
fact that this fund was not accessed during or following the
serious recession of 2007-09 speaks to the obsolescence of this
loan fund designed to assist states with pressing needs during
difficult economic times.
The Committee bill also requires that all maintenance of
effort (MOE) funds be spent under the rules of the TANF
program, eliminating the ability of states to count
expenditures in ``separate state programs'' toward meeting that
MOE requirement.
Reason for change
The Committee bill cleans up this section of the Social
Security Act to eliminate obsolete provisions from the 1996
law. This section also includes elimination of the TANF
contingency fund. As described above, those dollars are re-
purposed under the Committee bill as additional Child Care
Entitlement funds.
Effective date
The provision is effective on October 1, 2018.
Section 20: Effective Date
Present law
The current authorization of the TANF program expires
September 30, 2018.
Explanation of provision
The amendments made by this Act are effective October 1,
2018. The prohibition on drawing assistance in establishments
that sell marijuana is effective two years after the date of
enactment of the JOBS for Success Act.
Reason for change
The Committee believes it is appropriate to have an
effective date of October 1, 2018, the start of the next fiscal
year, following the expiration of the current authorization on
September 30, 2018. This is intended to provide necessary funds
to states to prevent any disruption in benefits or services.
III. VOTES OF THE COMMITTEE
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 5861, the ``Jobs and Opportunity with
Benefits and Services (JOBS) for Success Act'' on May 23-24,
2018.
An amendment in the nature of a substitute was offered by
Chairman Brady and adopted by voice vote (with a quorum being
present).
The vote on Mr. Reichert's motion to table Mr. Neal's
appeal of the ruling of the Chair was agreed to by a roll call
vote of 21 yeas to 14 nays (with a quorum being present). The
vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... X ........ ......... Mr. Neal......... ........ X .........
Mr. Johnson.................... X ........ ......... Mr. Levin........ ........ X .........
Mr. Nunes...................... X ........ ......... Mr. Lewis........ ........ ........ .........
Mr. Reichert................... X ........ ......... Mr. Doggett...... ........ X .........
Mr. Roskam..................... X ........ ......... Mr. Thompson..... ........ X .........
Mr. Buchanan................... X ........ ......... Mr. Larson....... ........ X .........
Mr. Smith (NE)................. X ........ ......... Mr. Blumenauer... ........ X .........
Ms. Jenkins.................... X ........ ......... Mr. Kind......... ........ X .........
Mr. Paulsen.................... X ........ ......... Mr. Pascrell..... ........ ........ .........
Mr. Marchant................... X ........ ......... Mr. Crowley...... ........ X .........
Ms. Black...................... ........ ........ ......... Mr. Davis........ ........ X .........
Mr. Reed....................... X ........ ......... Ms. Sanchez...... ........ X .........
Mr. Kelly...................... X ........ ......... Mr. Higgins...... ........ X .........
Mr. Renacci.................... X ........ ......... Ms. Sewell....... ........ X .........
Ms. Noem....................... ........ ........ ......... Ms. DelBene...... ........ X .........
Mr. Holding.................... X ........ ......... Ms. Chu.......... ........ X .........
Mr. Smith (MO)................. X ........ .........
Mr. Rice....................... X ........ .........
Mr. Schweikert................. X ........ .........
Ms. Walorski................... X ........ .........
Mr. Curbelo.................... X ........ .........
Mr. Bishop..................... ........ ........ .........
Mr. LaHood..................... X ........ .........
Mr. Wenstrup................... X ........ .........
----------------------------------------------------------------------------------------------------------------
The vote on the amendment offered by Mr. Doggett to the
amendment in the nature of a substitute to H.R. 5861, which
would increase the reservation of Federal Funds for certain
purposes, was not agreed to by a roll call vote of 23 nays to
11 yeas (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... ........ X ......... Mr. Neal......... X ........ .........
Mr. Johnson.................... ........ X ......... Mr. Levin........ X ........ .........
Mr. Nunes...................... ........ X ......... Mr. Lewis........ ........ ........ .........
Mr. Reichert................... ........ X ......... Mr. Doggett...... X ........ .........
Mr. Roskam..................... ........ X ......... Mr. Thompson..... X ........ .........
Mr. Buchanan................... ........ X ......... Mr. Larson....... ........ X .........
Mr. Smith (NE)................. ........ X ......... Mr. Blumenauer... X ........ .........
Ms. Jenkins.................... ........ X ......... Mr. Kind......... X ........ .........
Mr. Paulsen.................... ........ X ......... Mr. Pascrell..... ........ ........ .........
Mr. Marchant................... ........ X ......... Mr. Crowley...... ........ ........ .........
Ms. Black...................... ........ ........ ......... Mr. Davis........ X ........ .........
Mr. Reed....................... ........ X ......... Ms. Sanchez...... X ........ .........
Mr. Kelly...................... ........ X ......... Mr. Higgins...... X ........ .........
Mr. Renacci.................... ........ X ......... Ms. Sewell....... X ........ .........
Ms. Noem....................... ........ ........ ......... Ms. DelBene...... X ........ .........
Mr. Holding.................... ........ X ......... Ms. Chu.......... ........ ........ .........
Mr. Smith (MO)................. ........ X .........
Mr. Rice....................... ........ X .........
Mr. Schweikert................. ........ X .........
Ms. Walorski................... ........ X .........
Mr. Curbelo.................... ........ X .........
Mr. Bishop..................... ........ X .........
Mr. LaHood..................... ........ X .........
Mr. Wenstrup................... ........ X .........
----------------------------------------------------------------------------------------------------------------
The vote on Mr. Reichert's motion to table Ms. Sanchez's
appeal of the ruling of the Chair was agreed to by a roll call
vote of 21 yeas to 13 nays (with a quorum being present). The
vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... X ........ ......... Mr. Neal......... ........ X .........
Mr. Johnson.................... X ........ ......... Mr. Levin........ ........ X .........
Mr. Nunes...................... X ........ ......... Mr. Lewis........ ........ ........ .........
Mr. Reichert................... X ........ ......... Mr. Doggett...... ........ X .........
Mr. Roskam..................... X ........ ......... Mr. Thompson..... ........ X .........
Mr. Buchanan................... X ........ ......... Mr. Larson....... ........ X .........
Mr. Smith (NE)................. X ........ ......... Mr. Blumenauer... ........ X .........
Ms. Jenkins.................... X ........ ......... Mr. Kind......... ........ X .........
Mr. Paulsen.................... X ........ ......... Mr. Pascrell..... ........ ........ .........
Mr. Marchant................... X ........ ......... Mr. Crowley...... ........ ........ .........
Ms. Black...................... ........ ........ ......... Mr. Davis........ ........ X .........
Mr. Reed....................... X ........ ......... Ms. Sanchez...... ........ X .........
Mr. Kelly...................... X ........ ......... Mr. Higgins...... ........ X .........
Mr. Renacci.................... X ........ ......... Ms. Sewell....... ........ X .........
Ms. Noem....................... ........ ........ ......... Ms. DelBene...... ........ X .........
Mr. Holding.................... X ........ ......... Ms. Chu.......... ........ X .........
Mr. Smith (MO)................. ........ ........ .........
Mr. Rice....................... X ........ .........
Mr. Schweikert................. X ........ .........
Ms. Walorski................... X ........ .........
Mr. Curbelo.................... X ........ .........
Mr. Bishop..................... X ........ .........
Mr. LaHood..................... X ........ .........
Mr. Wenstrup................... X ........ .........
----------------------------------------------------------------------------------------------------------------
The vote on the amendment offered by Mr. Davis to the
amendment in the nature of a substitute to H.R. 5861, which
would develop a Federal Interagency Working Group, was not
agreed to by a roll call vote of 21 nays to 14 yeas (with a
quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... ........ X ......... Mr. Neal......... X ........ .........
Mr. Johnson.................... ........ X ......... Mr. Levin........ X ........ .........
Mr. Nunes...................... ........ X ......... Mr. Lewis........ ........ ........ .........
Mr. Reichert................... ........ X ......... Mr. Doggett...... X ........ .........
Mr. Roskam..................... ........ X ......... Mr. Thompson..... X ........ .........
Mr. Buchanan................... ........ X ......... Mr. Larson....... X ........ .........
Mr. Smith (NE)................. ........ X ......... Mr. Blumenauer... X ........ .........
Ms. Jenkins.................... ........ X ......... Mr. Kind......... X ........ .........
Mr. Paulsen.................... ........ X ......... Mr. Pascrell..... X ........ .........
Mr. Marchant................... ........ X ......... Mr. Crowley...... ........ ........ .........
Ms. Black...................... ........ ........ ......... Mr. Davis........ X ........ .........
Mr. Reed....................... ........ X ......... Ms. Sanchez...... X ........ .........
Mr. Kelly...................... ........ X ......... Mr. Higgins...... X ........ .........
Mr. Renacci.................... ........ X ......... Ms. Sewell....... X ........ .........
Ms. Noem....................... ........ ........ ......... Ms. DelBene...... X ........ .........
Mr. Holding.................... ........ X ......... Ms. Chu.......... X ........ .........
Mr. Smith (MO)................. ........ ........ .........
Mr. Rice....................... ........ X .........
Mr. Schweikert................. ........ X .........
Ms. Walorski................... ........ X .........
Mr. Curbelo.................... ........ X .........
Mr. Bishop..................... ........ X .........
Mr. LaHood..................... ........ X .........
Mr. Wenstrup................... ........ X .........
----------------------------------------------------------------------------------------------------------------
The vote on the amendment offered by Ms. Sewell to the
amendment in the nature of a substitute to H.R. 5861, which
would add certain state performance indicators, was not agreed
to by a roll call vote of 22 nays to 15 yeas (with a quorum
being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... ........ X ......... Mr. Neal......... X ........ .........
Mr. Johnson.................... ........ X ......... Mr. Levin........ X ........ .........
Mr. Nunes...................... ........ X ......... Mr. Lewis........ ........ ........ .........
Mr. Reichert................... ........ X ......... Mr. Doggett...... X ........ .........
Mr. Roskam..................... ........ X ......... Mr. Thompson..... X ........ .........
Mr. Buchanan................... ........ X ......... Mr. Larson....... X ........ .........
Mr. Smith (NE)................. ........ X ......... Mr. Blumenauer... X ........ .........
Ms. Jenkins.................... ........ X ......... Mr. Kind......... X ........ .........
Mr. Paulsen.................... ........ X ......... Mr. Pascrell..... X ........ .........
Mr. Marchant................... ........ X ......... Mr. Crowley...... X ........ .........
Ms. Black...................... ........ ........ ......... Mr. Davis........ X ........ .........
Mr. Reed....................... ........ X ......... Ms. Sanchez...... X ........ .........
Mr. Kelly...................... ........ X ......... Mr. Higgins...... X ........ .........
Mr. Renacci.................... ........ X ......... Ms. Sewell....... X ........ .........
Ms. Noem....................... ........ ........ ......... Ms. DelBene...... X ........ .........
Mr. Holding.................... ........ X ......... Ms. Chu.......... X ........ .........
Mr. Smith (MO)................. ........ X .........
Mr. Rice....................... ........ X .........
Mr. Schweikert................. ........ X .........
Ms. Walorski................... ........ X .........
Mr. Curbelo.................... ........ X .........
Mr. Bishop..................... ........ X .........
Mr. LaHood..................... ........ X .........
Mr. Wenstrup................... ........ X .........
----------------------------------------------------------------------------------------------------------------
The vote on the amendment offered by Ms. Chu to the
amendment in the nature of a substitute to H.R. 5861, which
would remove the 50 percent limit on Federal TANF funds that
can be transferred for child care, was not agreed to by a roll
call vote of 22 nays to 14 yeas (with a quorum being present).
The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... ........ X ......... Mr. Neal......... X ........ .........
Mr. Johnson.................... ........ X ......... Mr. Levin........ X ........ .........
Mr. Nunes...................... ........ X ......... Mr. Lewis........ ........ ........ .........
Mr. Reichert................... ........ X ......... Mr. Doggett...... X ........ .........
Mr. Roskam..................... ........ X ......... Mr. Thompson..... ........ ........ .........
Mr. Buchanan................... ........ X ......... Mr. Larson....... X ........ .........
Mr. Smith (NE)................. ........ X ......... Mr. Blumenauer... X ........ .........
Ms. Jenkins.................... ........ X ......... Mr. Kind......... X ........ .........
Mr. Paulsen.................... ........ X ......... Mr. Pascrell..... X ........ .........
Mr. Marchant................... ........ X ......... Mr. Crowley...... X ........ .........
Ms. Black...................... ........ ........ ......... Mr. Davis........ X ........ .........
Mr. Reed....................... ........ X ......... Ms. Sanchez...... X ........ .........
Mr. Kelly...................... ........ X ......... Mr. Higgins...... X ........ .........
Mr. Renacci.................... ........ X ......... Ms. Sewell....... X ........ .........
Ms. Noem....................... ........ ........ ......... Ms. DelBene...... X ........ .........
Mr. Holding.................... ........ X ......... Ms. Chu.......... X ........ .........
Mr. Smith (MO)................. ........ X .........
Mr. Rice....................... ........ X .........
Mr. Schweikert................. ........ X .........
Ms. Walorski................... ........ X .........
Mr. Curbelo.................... ........ X .........
Mr. Bishop..................... ........ X .........
Mr. LaHood..................... ........ X .........
Mr. Wenstrup................... ........ X .........
----------------------------------------------------------------------------------------------------------------
The vote on Mr. Roskam's motion to table Mr. Davis's appeal
of the ruling of the Chair was agreed to by a roll call vote of
22 yeas to 14 nays (with a quorum being present). The vote was
as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... X ........ ......... Mr. Neal......... ........ X .........
Mr. Johnson.................... X ........ ......... Mr. Levin........ ........ X .........
Mr. Nunes...................... X ........ ......... Mr. Lewis........ ........ ........ .........
Mr. Reichert................... X ........ ......... Mr. Doggett...... ........ X .........
Mr. Roskam..................... X ........ ......... Mr. Thompson..... ........ ........ .........
Mr. Buchanan................... X ........ ......... Mr. Larson....... ........ X .........
Mr. Smith (NE)................. X ........ ......... Mr. Blumenauer... ........ X .........
Ms. Jenkins.................... X ........ ......... Mr. Kind......... ........ X .........
Mr. Paulsen.................... X ........ ......... Mr. Pascrell..... ........ X .........
Mr. Marchant................... X ........ ......... Mr. Crowley...... ........ X .........
Ms. Black...................... ........ ........ ......... Mr. Davis........ ........ X .........
Mr. Reed....................... X ........ ......... Ms. Sanchez...... ........ X .........
Mr. Kelly...................... X ........ ......... Mr. Higgins...... ........ X .........
Mr. Renacci.................... X ........ ......... Ms. Sewell....... ........ X .........
Ms. Noem....................... ........ ........ ......... Ms. DelBene...... ........ X .........
Mr. Holding.................... X ........ ......... Ms. Chu.......... ........ X .........
Mr. Smith (MO)................. X ........ .........
Mr. Rice....................... X ........ .........
Mr. Schweikert................. X ........ .........
Ms. Walorski................... X ........ .........
Mr. Curbelo.................... X ........ .........
Mr. Bishop..................... X ........ .........
Mr. LaHood..................... X ........ .........
Mr. Wenstrup................... X ........ .........
----------------------------------------------------------------------------------------------------------------
H.R. 5861 was ordered favorably reported to the House of
Representatives as amended by a roll call vote of 22 yeas to 14
nays (with a quorum being present). The vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... X ........ ......... Mr. Neal......... ........ X .........
Mr. Johnson.................... X ........ ......... Mr. Levin........ ........ X .........
Mr. Nunes...................... X ........ ......... Mr. Lewis........ ........ ........ .........
Mr. Reichert................... X ........ ......... Mr. Doggett...... ........ X .........
Mr. Roskam..................... X ........ ......... Mr. Thompson..... ........ ........ .........
Mr. Buchanan................... X ........ ......... Mr. Larson....... ........ X .........
Mr. Smith (NE)................. X ........ ......... Mr. Blumenauer... ........ X .........
Ms. Jenkins.................... X ........ ......... Mr. Kind......... ........ X .........
Mr. Paulsen.................... X ........ ......... Mr. Pascrell..... ........ ........ .........
Mr. Marchant................... X ........ ......... Mr. Crowley...... ........ ........ .........
Ms. Black...................... ........ ........ ......... Mr. Davis........ ........ X .........
Mr. Reed....................... X ........ ......... Ms. Sanchez...... ........ X .........
Mr. Kelly...................... X ........ ......... Mr. Higgins...... ........ X .........
Mr. Renacci.................... X ........ ......... Ms. Sewell....... ........ X .........
Ms. Noem....................... ........ ........ ......... Ms. DelBene...... ........ X .........
Mr. Holding.................... X ........ ......... Ms. Chu.......... ........ X .........
Mr. Smith (MO)................. X ........ .........
Mr. Rice....................... X ........ .........
Mr. Schweikert................. X ........ .........
Ms. Walorski................... X ........ .........
Mr. Curbelo.................... X ........ .........
Mr. Bishop..................... X ........ .........
Mr. LaHood..................... X ........ .........
Mr. Wenstrup................... X ........ .........
----------------------------------------------------------------------------------------------------------------
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the effects on the budget of the bill, H.R. 2792, as
reported. The Committee agrees with the estimate prepared by
the Congressional Budget Office (CBO), which is included below.
B. Statement Regarding New Budget Authority and Tax Expenditures Budget
Authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority. The
Committee states further that the bill involves no new or
increased tax expenditures.
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 5, 2018.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5861, the Jobs and
Opportunity with Benefits and Services for Success Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 5861--Jobs and Opportunity with Benefits and Services for Success
Act
H.R. 5861 would amend title IV of the Social Security Act
to make various programmatic and financing changes to the
Temporary Assistance for Needy Families (TANF), child care
entitlement (CCE), and related programs. Specifically, the bill
would:
Extend TANF and the healthy marriage
promotion and responsible fatherhood grants through
2023 at their 2018 level of funding $16.7 billion;
Extend CCE through 2023 at $3.5 billion
annually, an increase of $608 million over the 2018
funding level;
Eliminate the TANF Contingency Fund--a fund
that provides additional grants to states that meet an
economic need test--which was funded at $608 million in
2018; and
Change rules about how states may spend
their TANF grants, how states contribute their own
spending toward the TANF program, and what states must
do to engage TANF recipients in work and training.
Federal costs: Funding for TANF, the healthy marriage
promotion and fatherhood grants, and CCE is scheduled to expire
on October 1, 2018. By extending those programs through 2023,
the bill would provide a total of $20.2 billion in additional
funding annually. However, CBO already assumes that level of
funding in its baseline, as required by section 257 of the
Balanced Budget and Emergency Deficit Control Act of 1985.
Therefore, the extension of those programs would have no cost
relative to the baseline.
H.R. 5861 also would increase funding for CCE by $608
million while eliminating the TANF contingency fund. Increasing
funding for CCE would provide additional funding of $608
million annually through 2023. However, CBO's baseline already
assumes that level of funding, for the TANF contingency fund,
in its baseline. CBO estimates that re directing funding from
the TANF contingency fund to the CCE would have an
insignificant net effect on spending.
H.R. 5861 also would change various TANF rules. Some of
those changes would increase the rate at which states spend
their TANF grants, while other changes would decrease that
rate. For example, the bill would require states to spend 85
percent of their TANF grants within three years. Because some
states have significant unobligated balances from prior year
TANF grants, CBO estimates that some states would accelerate
their spending in order to meet this requirement, increasing
outlays over the 2019-2028 period. Additionally, the bill would
require that 25 percent of each state's TANF grant be used only
for core activities that support work. CBO estimates that while
most states currently meet this spending requirement, some
states would need to increase their spending on core activities
over the 2019-2028 period.
Other changes to the TANF rules under H.R. 5861 would
decrease the rate at which states spend their TANF grants, CBO
estimates. For example, the bill would prohibit states from
transferring a portion of TANF grants to the Social Services
Block Grant (SSBG) program. CBO estimates that outlays under
TANF would decrease as states take time to identity how they
would otherwise spend funds that they have transferred to SSBG
in prior years.
The federal budgetary effects of enacting H.R. 5861 would
ultimately depend on how states respond to the bill's
requirements and to what extent they would alter their spending
patterns under TANF. On balance--recognizing the significant
uncertainty regarding potential actions by the state--CBO
estimates that any net effect on direct spending would not be
significant over the 2019-2028 period.
Because enacting H.R. 5861 would affect direct spending,
pay-as-you-go procedures apply. Enacting the bill would not
affect revenues.
CBO estimates that enacting H.R. 5861 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
Mandates: For large entitlement grant programs like TANF,
the Unfunded Mandates Reform Act defines an increase in the
stringency of conditions on states or localities as an
intergovernmental mandate if the affected governments lack
authority to amend their financial or programmatic
responsibilities while continuing to provide required services.
Although H.R. 5861 would impose new duties on states, the bill
does not contain intergovernmental mandates as defined by UMRA
because states possess extensive flexibility in the
administration of TANF to offset additional costs.
Phase-Out of Third-Party Contributions. Under current law,
states must maintain their historic level of qualified
expenditures on TANF--their maintenance of effort (MOE)
requirement--or face reduced federal funding. Currently, states
may count the value of certain in-kind or cash contributions
from non-governmental entities toward that MOE level. H.R. 5861
would phase-out that flexibility and require states to pay all
qualified expenditures from state or local sources by 2023. The
bill would not prohibit the use of third-party services, but
would limit their application to qualified expenditures. This
change would not constitute a mandate under UMRA because states
may reduce total TANF expenditures and continue providing
services required under the program.
Universal Case Management. Under current law, states may
require that TANF recipients develop an individual
responsibility plan. Presently, a majority of states exercise
this authority. H.R. 5861 would require all states to develop
individual opportunity plans with TANF recipients who are
eligible to work, which must include an assessment of their
education, skills, and work prospects. Those plans also must
include the plan's effect on the well-being of children in the
family. The bill would add new requirements for state agencies
to meet regularly with each recipient to monitor progress
toward the goals.
Improper Payments Control. H.R. 5861 would apply the
provisions of certain federal laws regarding improper payment
to state TANF programs. In general, federal law requires
covered agencies to review programs and activities, identify
areas that are susceptible to improper payments, and estimate
and report on the magnitude of such improper payments.
Data and Reporting Requirements. Various provisions in H.R.
5861 would require states to collect and report certain
information including indicators on TANF recipients' employment
status, earnings, and educational progress after exiting the
program. Additionally, the bill would strike a state option to
provide monthly data reports using a sample of TANF recipients
rather than the full population.
The bill would not impose private-sector mandates. Any
duties imposed on TANF recipients would be conditions of
federal aid and not mandates under UMRA.
The CBO staff contacts for this estimate are Susanne S.
Mehlman (for federal costs) and Andrew Laughlin (for impacts on
states). The estimate was reviewed by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee made findings and
recommendations that are reflected in this report.
B. Statement of General Performance Goals and Objectives
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, Committee establishes the
following performance related goals and objectives for this
legislation: To increase work and self-sufficiency among
parents under Title IV-A (Temporary Assistance for Needy
Families) of the Social Security Act.
C. Information Relating to Unfunded Mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4). The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
E. Duplication of Federal Programs
In compliance with clause 3(c)(5) of Rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
F. Disclosure of Directed Rule Makings
In compliance with Sec. 3(i) of H. Res. 5 (115th Congress),
the following statement is made concerning directed rule
makings: The Committee advises that the bill requires no
directed rulemakings within the meaning of such section.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter in
printed in italic and existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
SOCIAL SECURITY ACT
* * * * * * *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH
CHILDREN AND FOR CHILD-WELFARE SERVICES
PART A--[BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES] JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES PROGRAM
SEC. 401. PURPOSE.
(a) In General.--The purpose of this part is to increase the
flexibility of States in operating a program designed to--
(1) provide assistance to needy families so that
children may be cared for in their own homes or in the
homes of relatives;
(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and
marriage;
(3) prevent and reduce the incidence of out-of-
wedlock pregnancies and establish annual numerical
goals for preventing and reducing the incidence of
these pregnancies; [and]
(4) encourage the formation and maintenance of two-
parent families[.]; and
(5) reduce child poverty by increasing employment
entry, retention, and advancement of needy parents.
(b) No Individual Entitlement.--This part shall not be
interpreted to entitle any individual or family to assistance
under any State program funded under this part.
SEC. 402. ELIGIBLE STATES; STATE PLAN.
(a) In General.--As used in this part, the term ``eligible
State'' means, with respect to a fiscal year, a State that,
during the 27-month period ending with the close of the 1st
quarter of the fiscal year, has submitted to the Secretary a
plan that the Secretary has [found] approved that includes the
following:
(1) Outline of family assistance program.--
(A) General provisions.--A written document
that outlines how the State intends to do the
following:
(i) Conduct a program, designed to
serve all political subdivisions in the
State (not necessarily in a uniform
manner), that provides assistance to
needy families with (or expecting)
children and provides parents with job
preparation, work, and support services
to enable them to leave the program and
become self-sufficient.
[(ii) Require a parent or caretaker
receiving assistance under the program
to engage in work (as defined by the
State) once the State determines the
parent or caretaker is ready to engage
in work, or once the parent or
caretaker has received assistance under
the program for 24 months (whether or
not consecutive), whichever is earlier,
consistent with section 407(e)(2).
[(iii) Ensure that parents and
caretakers receiving assistance under
the program engage in work activities
in accordance with section 407.]
(ii) Require work-eligible
individuals (as defined in the
regulations promulgated pursuant to
section 407(i)(1)(A)(i)) to engage in
work activities consistent with section
407(c). The document shall describe any
other activity that the State will
consider a work activity under section
407(c)(13).
[(iv)] (iii) Take such reasonable
steps as the State deems necessary to
restrict the use and disclosure of
information about individuals and
families receiving assistance under the
program attributable to funds provided
by the Federal Government.
[(v)] (iv) Establish goals and take
action to prevent and reduce the
incidence of out-of-wedlock
pregnancies, with special emphasis on
teenage pregnancies, and establish
numerical goals for reducing the
illegitimacy ratio of the State (as
defined in section 403(a)(2)(C)(iii))
for calendar years 1996 through 2005.
[(vi)] (v) Conduct a program,
designed to reach State and local law
enforcement officials, the education
system, and relevant counseling
services, that provides education and
training on the problem of statutory
rape so that teenage pregnancy
prevention programs may be expanded in
scope to include men.
[(vii)] (vi) Implement policies and
procedures as necessary to prevent
access to assistance provided under the
State program funded under this part
through any electronic fund transaction
in an automated teller machine or
point-of-sale device located in a place
described in section 408(a)(12),
including a plan to ensure that
recipients of the assistance have
adequate access to their cash
assistance.
[(viii)] (vii) Ensure that recipients
of assistance provided under the State
program funded under this part have
access to using or withdrawing
assistance with minimal fees or
charges, including an opportunity to
access assistance with no fee or
charges, and are provided information
on applicable fees and surcharges that
apply to electronic fund transactions
involving the assistance, and that such
information is made publicly available.
(viii) Describe the case management
practices of the State with respect to
the requirements of section 408(b),
provide a copy of the form or forms
that will be used to assess a work-
eligible individual (as so defined) and
prepare an individual opportunity plan
for the individual, describe how the
State will ensure that such a plan is
reviewed in accordance with section
408(b)(5), and describe how the State
will measure progress under the plan.
(ix) Propose the requisite levels of
performance for the State for purposes
of section 407(a)(3)(D) for each year
in the 2-year period referred to in
subsection (d) of this section, and
provide an explanation with supporting
data of why each such level is
appropriate.
(x) Describe how the State will
engage low-income noncustodial parents
paying child support and how such a
parent will be provided with access to
work support and other services under
the program to which the parent is
referred to support their employment
and advancement.
(xi) Describe how the State will
comply with improper payments
provisions in section 404(l).
(xii) Describe coordination with
other programs, including whether the
State intends to exercise authority
provided by section 404(d) of this Act
to transfer any funds paid to the State
under this part, provide assurance
that, in the case of a transfer to
carry out a program under title I of
the Workforce Innovation and
Opportunity Act, the State will comply
with section 404(d)(3)(B) of this Act
and coordinate with the one-stop
delivery system under the Workforce
Innovation and Opportunity Act, and
describe how the State will coordinate
with the programs involved to provide
services to families receiving
assistance under the program referred
to in paragraph (1) of this subsection.
(xiii) Describe how the State will
promote marriage, such as through
temporary disregard of the income of a
new spouse when an individual receiving
assistance under the State program
marries so that the couple doesn't
automatically lose benefits due to
marriage.
(xiv) Describe how the State will
allow for a transitional period of
benefits, such as through temporary
earned income disregards or a gradual
reduction in the monthly benefit
amount, for an individual receiving
assistance who obtains employment and
becomes ineligible due to an increase
in income obtained through employment
or through an increase in wages.
(B) Special provisions.--
(i) The document shall indicate
whether the State intends to treat
families moving into the State from
another State differently than other
families under the program, and if so,
how the State intends to treat such
families under the program.
(ii) The document shall indicate
whether the State intends to provide
assistance under the program to
individuals who are not citizens of the
United States, and if so, shall include
an overview of such assistance.
(iii) The document shall set forth
objective criteria for the delivery of
benefits and the determination of
eligibility and for fair and equitable
treatment, including an explanation of
how the State will provide
opportunities for recipients who have
been adversely affected to be heard in
a State administrative or appeal
process.
[(iv) Not later than 1 year after the
date of enactment of this section,
unless the chief executive officer of
the State opts out of this provision by
notifying the Secretary, a State shall,
consistent with the exception provided
in section 407(e)(2), require a parent
or caretaker receiving assistance under
the program who, after receiving such
assistance for 2 months is not exempt
from work requirements and is not
engaged in work, as determined under
section 407(c), to participate in
community service employment, with
minimum hours per week and tasks to be
determined by the State.
[(v) The document shall indicate
whether the State intends to assist
individuals to train for, seek, and
maintain employment--
[(I) providing direct care in
a long-term care facility (as
such terms are defined under
section 2011); or
[(II) in other occupations
related to elder care
determined appropriate by the
State for which the State
identifies an unmet need for
service personnel,
and, if so, shall include an overview
of such assistance.]
(2) Certification that the state will operate a child
support enforcement program.--A certification by the
chief executive officer of the State that, during the
fiscal year, the State will operate a child support
enforcement program under the State plan approved under
part D.
(3) Certification that the state will operate a
foster care and adoption assistance program.--A
certification by the chief executive officer of the
State that, during the fiscal year, the State will
operate a foster care and adoption assistance program
under the State plan approved under part E, and that
the State will take such actions as are necessary to
ensure that children receiving assistance under such
part are eligible for medical assistance under the
State plan under title XIX.
(4) Certification of the administration of the
program.--A certification by the chief executive
officer of the State specifying which State agency or
agencies will administer and supervise the program
referred to in paragraph (1) for the fiscal year, which
shall include assurances that local governments and
private sector organizations--
(A) have been consulted regarding the plan
and design of welfare services in the State so
that services are provided in a manner
appropriate to local populations; and
(B) have had at least 45 days to submit
comments on the plan and the design of such
services.
(5) Certification that the state will provide indians
with equitable access to assistance.--A certification
by the chief executive officer of the State that,
during the fiscal year, the State will provide each
member of an Indian tribe, who is domiciled in the
State and is not eligible for assistance under a tribal
family assistance plan approved under section 412, with
equitable access to assistance under the State program
funded under this part attributable to funds provided
by the Federal Government.
(6) Certification of standards and procedures to
ensure against program fraud and abuse.--A
certification by the chief executive officer of the
State that the State has established and is enforcing
standards and procedures to ensure against program
fraud and abuse, including standards and procedures
concerning nepotism, conflicts of interest among
individuals responsible for the administration and
supervision of the State program, kickbacks, and the
use of political patronage.
(7) Optional certification of standards and
procedures to ensure that the state will screen for and
identify domestic violence.--
(A) In general.--At the option of the State,
a certification by the chief executive officer
of the State that the State has established and
is enforcing standards and procedures to--
(i) screen and identify individuals
receiving assistance under this part
with a history of domestic violence
while maintaining the confidentiality
of such individuals;
(ii) refer such individuals to
counseling and supportive services; and
(iii) waive, pursuant to a
determination of good cause, other
program requirements such as time
limits (for so long as necessary) for
individuals receiving assistance,
residency requirements, child support
cooperation requirements, and family
cap provisions, in cases where
compliance with such requirements would
make it more difficult for individuals
receiving assistance under this part to
escape domestic violence or unfairly
penalize such individuals who are or
have been victimized by such violence,
or individuals who are at risk of
further domestic violence.
(B) Domestic violence defined.--For purposes
of this paragraph, the term ``domestic
violence'' has the same meaning as the term
``battered or subjected to extreme cruelty'',
as defined in section 408(a)(7)(C)(iii).
(b) Plan Amendments.--Within 30 days after a State amends a
plan submitted pursuant to subsection (a), the State shall
notify the Secretary of the amendment.
[(c) Public Availability of State Plan Summary.--The State
shall make available to the public a summary of any plan or
plan amendment submitted by the State under this section.]
(c) Public Availability of State Plans.--The Secretary shall
make available to the public a link to any plan or plan
amendment submitted by a State under this subsection.
(d) 2-year Plan.--A plan submitted pursuant to this section
shall be designed to be implemented during a 2-year period.
(e) Combined Plan Allowed.--A State may submit to the
Secretary and the Secretary of Labor a combined State plan that
meets the requirements of subsections (a) and (d) and that is
for programs and activities under the Workforce Innovation and
Opportunity Act.
(f) Approval of Plans.--The Secretary shall approve any plan
submitted pursuant to this section that meets the requirements
of subsections (a) through (d).
SEC. 403. GRANTS TO STATES.
(a) Grants.--
(1) Family assistance grant.--
(A) In general.--Each eligible State shall be
entitled to receive from the Secretary, for
each of fiscal years [2017 and 2018] 2019
through 2023, a grant in an amount equal to the
State family assistance grant.
(B) State family assistance grant.--The State
family assistance grant payable to a State for
a fiscal year shall be the amount that bears
the same ratio to the amount specified in
subparagraph (C) of this paragraph (as in
effect just before the enactment of the Welfare
Integrity and Data Improvement Act), reduced by
the [percentage specified in section 413(h)(1)]
the sum of the percentages specified in
sections 406(b) and 413(h) with respect to the
fiscal year, as the amount required to be paid
to the State under this paragraph (as so in
effect) for fiscal year 2002 (determined
without regard to any reduction pursuant to
section 409 or 412(a)(1)) bears to the total
amount required to be paid under this paragraph
for fiscal year 2002 (as so determined).
(C) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each
of fiscal years [2017 and 2018] 2019 through
2023 $16,566,542,000 for grants under this
paragraph.
(2) Healthy marriage promotion and responsible
fatherhood grants.--
(A) In general.--
(i) Use of funds.--Subject to
subparagraphs (B), (C), and (E), the
Secretary may use the funds made
available under subparagraph (D) for
the purpose of conducting and
supporting research and demonstration
projects by public or private entities,
and providing technical assistance to
States, Indian tribes and tribal
organizations, and such other entities
as the Secretary may specify that are
receiving a grant under another
provision of this part.
(ii) Limitations.--The Secretary may
not award funds made available under
this paragraph on a noncompetitive
basis, and may not provide any such
funds to an entity for the purpose of
carrying out healthy marriage promotion
activities or for the purpose of
carrying out activities promoting
responsible fatherhood unless the
entity has submitted to the Secretary
an application (or, in the case of an
entity seeking funding to carry out
healthy marriage promotion activities
and activities promoting responsible
fatherhood, a combined application that
contains assurances that the entity
will carry out such activities under
separate programs and shall not combine
any funds awarded to carry out either
such activities) which--
(I) describes--
(aa) how the programs
or activities proposed
in the application will
address, as
appropriate, issues of
domestic violence; and
(bb) what the
applicant will do, to
the extent relevant, to
ensure that
participation in the
programs or activities
is voluntary, and to
inform potential
participants that their
participation is
voluntary; and
(II) contains a commitment by
the entity--
(aa) to not use the
funds for any other
purpose; and
(bb) to consult with
experts in domestic
violence or relevant
community domestic
violence coalitions in
developing the programs
and activities.
(iii) Healthy marriage promotion
activities.--In clause (ii), the term
``healthy marriage promotion
activities'' means the following:
(I) Public advertising
campaigns on the value of
marriage and the skills needed
to increase marital stability
and health.
(II) Education in high
schools on the value of
marriage, relationship skills,
and budgeting.
(III) Marriage education,
marriage skills, and
relationship skills programs,
that may include parenting
skills, financial management,
conflict resolution, and job
and career advancement.
(IV) Pre-marital education
and marriage skills training
for engaged couples and for
couples or individuals
interested in marriage.
(V) Marriage enhancement and
marriage skills training
programs for married couples.
(VI) Divorce reduction
programs that teach
relationship skills.
(VII) Marriage mentoring
programs which use married
couples as role models and
mentors in at-risk communities.
(VIII) Programs to reduce the
disincentives to marriage in
means-tested aid programs, if
offered in conjunction with any
activity described in this
subparagraph.
(B) Limitation on use of funds for
demonstration projects for coordination of
provision of child welfare and [tanf] jobs
services to tribal families at risk of child
abuse or neglect.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $2,000,000 on a
competitive basis to fund demonstration
projects designed to test the
effectiveness of tribal governments or
tribal consortia in coordinating the
provision to tribal families at risk of
child abuse or neglect of child welfare
services and services under tribal
programs funded under this part.
(ii) Limitation on use of funds.--A
grant made pursuant to clause (i) to
such a project shall not be used for
any purpose other than--
(I) to improve case
management for families
eligible for assistance from
such a tribal program;
(II) for supportive services
and assistance to tribal
children in out-of-home
placements and the tribal
families caring for such
children, including families
who adopt such children; and
(III) for prevention services
and assistance to tribal
families at risk of child abuse
and neglect.
(iii) Reports.--The Secretary may
require a recipient of funds awarded
under this subparagraph to provide the
Secretary with such information as the
Secretary deems relevant to enable the
Secretary to facilitate and oversee the
administration of any project for which
funds are provided under this
subparagraph.
(C) Limitation on use of funds for activities
promoting responsible fatherhood.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $75,000,000 on a
competitive basis to States,
territories, Indian tribes and tribal
organizations, and public and nonprofit
community entities, including religious
organizations, for activities promoting
responsible fatherhood.
(ii) Activities promoting responsible
fatherhood.--In this paragraph, the
term ``activities promoting responsible
fatherhood'' means the following:
(I) Activities to promote
marriage or sustain marriage
through activities such as
counseling, mentoring,
disseminating information about
the benefits of marriage and 2-
parent involvement for
children, enhancing
relationship skills, education
regarding how to control
aggressive behavior,
disseminating information on
the causes of domestic violence
and child abuse, marriage
preparation programs,
premarital counseling, marital
inventories, skills-based
marriage education, financial
planning seminars, including
improving a family's ability to
effectively manage family
business affairs by means such
as education, counseling, or
mentoring on matters related to
family finances, including
household management,
budgeting, banking, and
handling of financial
transactions and home
maintenance, and divorce
education and reduction
programs, including mediation
and counseling.
(II) Activities to promote
responsible parenting through
activities such as counseling,
mentoring, and mediation,
disseminating information about
good parenting practices,
skills-based parenting
education, encouraging child
support payments, and other
methods.
(III) Activities to foster
economic stability by helping
fathers improve their economic
status by providing activities
such as work first services,
job search, job training,
subsidized employment, job
retention, job enhancement, and
encouraging education,
including career-advancing
education, dissemination of
employment materials,
coordination with existing
employment services such as
welfare-to-work programs,
referrals to local employment
training initiatives, and other
methods.
(IV) Activities to promote
responsible fatherhood that are
conducted through a contract
with a nationally recognized,
nonprofit fatherhood promotion
organization, such as the
development, promotion, and
distribution of a media
campaign to encourage the
appropriate involvement of
parents in the life of any
child and specifically the
issue of responsible
fatherhood, and the development
of a national clearinghouse to
assist States and communities
in efforts to promote and
support marriage and
responsible fatherhood.
(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each
of fiscal years [2017 and 2018] 2019 through
2023 for expenditure in accordance with this
paragraph--
(i) $75,000,000 for awarding funds
for the purpose of carrying out healthy
marriage promotion activities; and
(ii) $75,000,000 for awarding funds
for the purpose of carrying out
activities promoting responsible
fatherhood.
If the Secretary makes an award under
subparagraph (B)(i) [for fiscal year 2017 or
2018], the funds for such award shall be taken
in equal portion from the amounts appropriated
under clauses (i) and (ii).
(E) Preference.--In awarding funds under this
paragraph for fiscal year 2011, the Secretary
shall give preference to entities that were
awarded funds under this paragraph for any
prior fiscal year and that have demonstrated
the ability to successfully carry out the
programs funded under this paragraph.
[(3) Supplemental grant for population increases in
certain states.--
[(A) In general.--Each qualifying State
shall, subject to subparagraph (F), be entitled
to receive from the Secretary--
[(i) for fiscal year 1998 a grant in
an amount equal to 2.5 percent of the
total amount required to be paid to the
State under former section 403 (as in
effect during fiscal year 1994) for
fiscal year 1994; and
[(ii) for each of fiscal years 1999,
2000, and 2001, a grant in an amount
equal to the sum of--
[(I) the amount (if any)
required to be paid to the
State under this paragraph for
the immediately preceding
fiscal year; and
[(II) 2.5 percent of the sum
of--
[(aa) the total
amount required to be
paid to the State under
former section 403 (as
in effect during fiscal
year 1994) for fiscal
year 1994; and
[(bb) the amount (if
any) required to be
paid to the State under
this paragraph for the
fiscal year preceding
the fiscal year for
which the grant is to
be made.
[(B) Preservation of grant without increases
for states failing to remain qualifying
states.--Each State that is not a qualifying
State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to
subparagraph (F), be entitled to receive from
the Secretary for the specified fiscal year, a
grant in an amount equal to the amount required
to be paid to the State under this paragraph
for the most recent fiscal year for which the
State was a qualifying State.
[(C) Qualifying state.--
[(i) In general.--For purposes of
this paragraph, a State is a qualifying
State for a fiscal year if--
[(I) the level of welfare
spending per poor person by the
State for the immediately
preceding fiscal year is less
than the national average level
of State welfare spending per
poor person for such preceding
fiscal year; and
[(II) the population growth
rate of the State (as
determined by the Bureau of the
Census) for the most recent
fiscal year for which
information is available
exceeds the average population
growth rate for all States (as
so determined) for such most
recent fiscal year.
[(ii) State must qualify in fiscal
year 1998.--Notwithstanding clause (i),
a State shall not be a qualifying State
for any fiscal year after 1998 by
reason of clause (i) if the State is
not a qualifying State for fiscal year
1998 by reason of clause (i).
[(iii) Certain states deemed
qualifying states.--For purposes of
this paragraph, a State is deemed to be
a qualifying State for fiscal years
1998, 1999, 2000, and 2001 if--
[(I) the level of welfare
spending per poor person by the
State for fiscal year 1994 is
less than 35 percent of the
national average level of State
welfare spending per poor
person for fiscal year 1994; or
[(II) the population of the
State increased by more than 10
percent from April 1, 1990 to
July 1, 1994, according to the
population estimates in
publication CB94-204 of the
Bureau of the Census.
[(D) Definitions.--As used in this paragraph:
[(i) Level of welfare spending per
poor person.--The term ``level of State
welfare spending per poor person''
means, with respect to a State and a
fiscal year--
[(I) the sum of--
[(aa) the total
amount required to be
paid to the State under
former section 403 (as
in effect during fiscal
year 1994) for fiscal
year 1994; and
[(bb) the amount (if
any) paid to the State
under this paragraph
for the immediately
preceding fiscal year;
divided by
[(II) the number of
individuals, according to the
1990 decennial census, who were
residents of the State and
whose income was below the
poverty line.
[(ii) National average level of state
welfare spending per poor person.--The
term ``national average level of State
welfare spending per poor person''
means, with respect to a fiscal year,
an amount equal to--
[(I) the total amount
required to be paid to the
States under former section 403
(as in effect during fiscal
year 1994) for fiscal year
1994; divided by
[(II) the number of
individuals, according to the
1990 decennial census, who were
residents of any State and
whose income was below the
poverty line.
[(iii) State.--The term ``State''
means each of the 50 States of the
United States and the District of
Columbia.
[(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1998, 1999, 2000, and 2001 such sums as
are necessary for grants under this paragraph,
in a total amount not to exceed $800,000,000.
[(F) Grants reduced pro rata if insufficient
appropriations.--If the amount appropriated
pursuant to this paragraph for a fiscal year
(or portion of a fiscal year) is less than the
total amount of payments otherwise required to
be made under this paragraph for the fiscal
year (or portion of the fiscal year), then the
amount otherwise payable to any State for the
fiscal year (or portion of the fiscal year)
under this paragraph shall be reduced by a
percentage equal to the amount so appropriated
divided by such total amount.
[(G) Budget scoring.--Notwithstanding section
257(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985, the baseline shall
assume that no grant shall be made under this
paragraph after fiscal year 2001.
[(H) Reauthorization.--Notwithstanding any
other provision of this paragraph--
[(i) any State that was a qualifying
State under this paragraph for fiscal
year 2001 or any prior fiscal year
shall be entitled to receive from the
Secretary for each of fiscal years 2002
and 2003 a grant in an amount equal to
the amount required to be paid to the
State under this paragraph for the most
recent fiscal year in which the State
was a qualifying State;
[(ii) subparagraph (G) shall be
applied as if ``fiscal year 2011'' were
substituted for ``fiscal year 2001'';
[(iii) out of any money in the
Treasury of the United States not
otherwise appropriated, there are
appropriated for each of fiscal years
2002 and 2003 such sums as are
necessary for grants under this
subparagraph.
[(4) Bonus to reward high performance states.--
[(A) In general.--The Secretary shall make a
grant pursuant to this paragraph to each State
for each bonus year for which the State is a
high performing State.
[(B) Amount of grant.--
[(i) In general.--Subject to clause
(ii) of this subparagraph, the
Secretary shall determine the amount of
the grant payable under this paragraph
to a high performing State for a bonus
year, which shall be based on the score
assigned to the State under
subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus
year.
[(ii) Limitation.--The amount payable
to a State under this paragraph for a
bonus year shall not exceed 5 percent
of the State family assistance grant.
[(C) Formula for measuring state
performance.--Not later than 1 year after the
date of the enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, the Secretary, in
consultation with the National Governors'
Association and the American Public Welfare
Association, shall develop a formula for
measuring State performance in operating the
State program funded under this part so as to
achieve the goals set forth in section 401(a).
[(D) Scoring of state performance; setting of
performance thresholds.--For each bonus year,
the Secretary shall--
[(i) use the formula developed under
subparagraph (C) to assign a score to
each eligible State for the fiscal year
that immediately precedes the bonus
year; and
[(ii) prescribe a performance
threshold in such a manner so as to
ensure that--
[(I) the average annual total
amount of grants to be made
under this paragraph for each
bonus year equals $200,000,000;
and
[(II) the total amount of
grants to be made under this
paragraph for all bonus years
equals $1,000,000,000.
[(E) Definitions.--As used in this paragraph:
[(i) Bonus year.--The term ``bonus
year'' means fiscal years 1999, 2000,
2001, 2002, and 2003.
[(ii) High performing state.--The
term ``high performing State'' means,
with respect to a bonus year, an
eligible State whose score assigned
pursuant to subparagraph (D)(i) for the
fiscal year immediately preceding the
bonus year equals or exceeds the
performance threshold prescribed under
subparagraph (D)(ii) for such preceding
fiscal year.
[(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1999 through 2003 $1,000,000,000 for
grants under this paragraph.
[(5) Welfare-to-work grants.--
[(A) Formula grants.--
[(i) Entitlement.--A State shall be
entitled to receive from the Secretary
of Labor a grant for each fiscal year
specified in subparagraph (H) of this
paragraph for which the State is a
welfare-to-work State, in an amount
that does not exceed the lesser of--
[(I) 2 times the total of the
expenditures by the State
(excluding qualified State
expenditures (as defined in
section 409(a)(7)(B)(i)) and
any expenditure described in
subclause (I), (II), or (IV) of
section 409(a)(7)(B)(iv))
during the period permitted
under subparagraph (C)(vii) of
this paragraph for the
expenditure of funds under the
grant for activities described
in subparagraph (C)(i) of this
paragraph; or
[(II) the allotment of the
State under clause (iii) of
this subparagraph for the
fiscal year.
[(ii) Welfare-to-work state.--A State
shall be considered a welfare-to-work
State for a fiscal year for purposes of
this paragraph if the Secretary of
Labor determines that the State meets
the following requirements:
[(I) The State has submitted
to the Secretary of Labor and
the Secretary of Health and
Human Services (in the form of
an addendum to the State plan
submitted under section 402) a
plan which--
[(aa) describes how,
consistent with this
subparagraph, the State
will use any funds
provided under this
subparagraph during the
fiscal year;
[(bb) specifies the
formula to be used
pursuant to clause (vi)
to distribute funds in
the State, and
describes the process
by which the formula
was developed;
[(cc) contains
evidence that the plan
was developed in
consultation and
coordination with
appropriate entitites
in sub-State areas;
[(dd) contains
assurances by the
Governor of the State
that the private
industry council (and
any alternate agency
designated by the
Governor under item
(ee)) for a service
delivery area in the
State will coordinate
the expenditure of any
funds provided under
this subparagraph for
the benefit of the
service delivery area
with the expenditure of
the funds provided to
the State under section
403(a)(1);
[(ee) if the Governor
of the State desires to
have an agency other
than a private industry
council administer the
funds provided under
this subparagraph for
the benefit of 1 or
more service delivery
areas in the State,
contains an application
to the Secretary of
Labor for a waiver of
clause (vii)(I) with
respect to the area or
areas in order to
permit an alternate
agency designated by
the Governor to so
administer the funds;
and
[(ff) describes how
the State will ensure
that a private industry
council to which
information is
disclosed pursuant to
section 403(a)(5)(K) or
454A(f)(5) has
procedures for
safeguarding the
information and for
ensuring that the
information is used
solely for the purpose
described in that
section.
[(II) The State has provided
to the Secretary of Labor an
estimate of the amount that the
State intends to expend during
the period permitted under
subparagraph (C)(vii) of this
paragraph for the expenditure
of funds under the grant
(excluding expenditures
described in section
409(a)(7)(B)(iv) (other than
subclause (III) thereof))
pursuant to this paragraph.
[(III) The State has agreed
to negotiate in good faith with
the Secretary of Health and
Human Services with respect to
the substance and funding of
any evaluation under section
413(j), and to cooperate with
the conduct of any such
evaluation.
[(IV) The State is an
eligible State for the fiscal
year.
[(V) The State certifies that
qualified State expenditures
(within the meaning of section
409(a)(7)) for the fiscal year
will be not less than the
applicable percentage of
historic State expenditures
(within the meaning of section
409(a)(7)) with respect to the
fiscal year.
[(iii) Allotments to welfare-to-work
states.--
[(I) In general.--Subject to
this clause, the allotment of a
welfare-to-work State for a
fiscal year shall be the
available amount for the fiscal
year, multiplied by the State
percentage for the fiscal year.
[(II) Minimum allotment.--The
allotment of a welfare-to-work
State (other than Guam, the
Virgin Islands, or American
Samoa) for a fiscal year shall
not be less than 0.25 percent
of the available amount for the
fiscal year.
[(III) Pro rata reduction.--
Subject to subclause (II), the
Secretary of Labor shall make
pro rata reductions in the
allotments to States under this
clause for a fiscal year as
necessary to ensure that the
total of the allotments does
not exceed the available amount
for the fiscal year.
[(iv) Available amount.--As used in
this subparagraph, the term ``available
amount'' means, for a fiscal year, the
sum of--
[(I) 75 percent of the sum
of--
[(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
[(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
[(II) any available amount
for the immediately preceding
fiscal year that has not been
obligated by a State, other
than funds reserved by the
State for distribution under
clause (vi)(III) and funds
distributed pursuant to clause
(vi)(I) in any State in which
the service delivery area is
the State.
[(v) State percentage.--As used in
clause (iii), the term ``State
percentage'' means, with respect to a
fiscal year, \1/2\ of the sum of--
[(I) the percentage
represented by the number of
individuals in the State whose
income is less than the poverty
line divided by the number of
such individuals in the United
States; and
[(II) the percentage
represented by the number of
adults who are recipients of
assistance under the State
program funded under this part
divided by the number of adults
in the United States who are
recipients of assistance under
any State program funded under
this part.
[(vi) Procedure for distribution of
funds within states.--
[(I) Allocation formula.--A
State to which a grant is made
under this subparagraph shall
devise a formula for allocating
not less than 85 percent of the
amount of the grant among the
service delivery areas in the
State, which--
[(aa) determines the
amount to be allocated
for the benefit of a
service delivery area
in proportion to the
number (if any) by
which the population of
the area with an income
that is less than the
poverty line exceeds
7.5 percent of the
total population of the
area, relative to such
number for all such
areas in the State with
such an excess, and
accords a weight of not
less than 50 percent to
this factor;
[(bb) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of adults
residing in the area
who have been
recipients of
assistance under the
State program funded
under this part
(whether in effect
before or after the
amendments made by
section 103(a) of the
Personal Responsibility
and Work Opportunity
Reconciliation Act of
1996 first applied to
the State) for at least
30 months (whether or
not consecutive)
relative to the number
of such adults residing
in the State; and
[(cc) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of unemployed
individuals residing in
the area relative to
the number of such
individuals residing in
the State.
[(II) Distribution of
funds.--
[(aa) In general.--If
the amount allocated by
the formula to a
service delivery area
is at least $100,000,
the State shall
distribute the amount
to the entity
administering the grant
in the area.
[(bb) Special rule.--
If the amount allocated
by the formula to a
service delivery area
is less than $100,000,
the sum shall be
available for
distribution in the
State under subclause
(III) during the fiscal
year.
[(III) Projects to help long-
term recipients of assistance
enter unsubsidized jobs.--The
Governor of a State to which a
grant is made under this
subparagraph may distribute not
more than 15 percent of the
grant funds (plus any amount
required to be distributed
under this subclause by reason
of subclause (II)(bb)) to
projects that appear likely to
help long-term recipients of
assistance under the State
program funded under this part
(whether in effect before or
after the amendments made by
section 103(a) of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 first applied to the
State) enter unsubsidized
employment.
[(vii) Administration.--
[(I) Private industry
councils.--The private industry
council for a service delivery
area in a State shall have sole
authority, in coordination with
the chief elected official (as
defined in section 3 of the
Workforce Innovation and
Opportunity Act) of the area,
to expend the amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the service delivery area, in
accordance with the assurances
described in clause (ii)(I)(dd)
provided by the Governor of the
State.
[(II) Enforcement of
coordination of expenditures
with other expenditures under
this part.--Notwithstanding
subclause (I) of this clause,
on a determination by the
Governor of a State that a
private industry council (or an
alternate agency described in
clause (ii)(I)(dd)) has used
funds provided under this
subparagraph in a manner
inconsistent with the
assurances described in clause
(ii)(I)(dd)--
[(aa) the private
industry council (or
such alternate agency)
shall remit the funds
to the Governor; and
[(bb) the Governor
shall apply to the
Secretary of Labor for
a waiver of subclause
(I) of this clause with
respect to the service
delivery area or areas
involved in order to
permit an alternate
agency designated by
the Governor to
administer the funds in
accordance with the
assurances.
[(III) Authority to permit
use of alternate administering
agency.--The Secretary of Labor
shall approve an application
submitted under clause
(ii)(I)(ee) or subclause
(II)(bb) of this clause to
waive subclause (I) of this
clause with respect to 1 or
more service delivery areas if
the Secretary determines that
the alternate agency designated
in the application would
improve the effectiveness or
efficiency of the
administration of amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the area or areas.
[(viii) Data to be used in
determining the number of adult tanf
recipients.--For purposes of this
subparagraph, the number of adult
recipients of assistance under a State
program funded under this part for a
fiscal year shall be determined using
data for the most recent 12-month
period for which such data is available
before the beginning of the fiscal
year.
[(ix) Reversion of unallotted formula
funds.--If at the end of any fiscal
year any funds available under this
subparagraph have not been allotted due
to a determination by the Secretary
that any State has not met the
requirements of clause (ii), such funds
shall be transferred to the General
Fund of the Treasury of the United
States.
[(B) Competitive grants.--
[(i) In general.--The Secretary of
Labor shall award grants in accordance
with this subparagraph, in fiscal years
1998 and 1999, for projects proposed by
eligible applicants, based on the
following:
[(I) The effectiveness of the
proposal in--
[(aa) expanding the
base of knowledge about
programs aimed at
moving recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment.
[(bb) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment; and
[(cc) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment, even in
labor markets that have
a shortage of low-skill
jobs.
[(II) At the discretion of
the Secretary of Labor, any of
the following:
[(aa) The history of
success of the
applicant in moving
individuals with
multiple barriers into
work.
[(bb) Evidence of the
applicant's ability to
leverage private,
State, and local
resources.
[(cc) Use by the
applicant of State and
local resources beyond
those required by
subparagraph (A).
[(dd) Plans of the
applicant to coordinate
with other
organizations at the
local and State level.
[(ee) Use by the
applicant of current or
former recipients of
assistance under a
State program funded
under this part as
mentors, case managers,
or service providers.
[(ii) Eligible applicants.--As used
in clause (i), the term ``eligible
applicant'' means a private industry
council for a service delivery area in
a State, a political subdivision of a
State, or a private entity applying in
conjunction with the private industry
council for such a service delivery
area or with such a political
subdivision, that submits a proposal
developed in consultation with the
Governor of the State.
[(iii) Determination of grant
amount.--In determining the amount of a
grant to be made under this
subparagraph for a project proposed by
an applicant, the Secretary of Labor
shall provide the applicant with an
amount sufficient to ensure that the
project has a reasonable opportunity to
be successful, taking into account the
number of long-term recipients of
assistance under a State program funded
under this part, the level of
unemployment, the job opportunities and
job growth, the poverty rate, and such
other factors as the Secretary of Labor
deems appropriate, in the area to be
served by the project.
[(iv) Consideration of needs of rural
areas and cities with large
concentrations of poverty.--In making
grants under this subparagraph, the
Secretary of Labor shall consider the
needs of rural areas and cities with
large concentrations of residents with
an income that is less than the poverty
line.
[(v) Funding.--For grants under this
subparagraph for each fiscal year
specified in subparagraph (H), there
shall be available to the Secretary of
Labor an amount equal to the sum of--
[(I) 25 percent of the sum
of--
[(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
[(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
[(II) any amount available
for grants under this
subparagraph for the
immediately preceding fiscal
year that has not been
obligated.
[(C) Limitations on use of funds.--
[(i) Allowable activities.--An entity
to which funds are provided under this
paragraph shall use the funds to move
individuals into and keep individuals
in lasting unsubsidized employment by
means of any of the following:
[(I) The conduct and
administration of community
service or work experience
programs.
[(II) Job creation through
public or private sector
employment wage subsidies.
[(III) On-the-job training.
[(IV) Contracts with public
or private providers of
readiness, placement, and post-
employment services, or if the
entity is not a private
industry council or workforce
investment board, the direct
provision of such services.
[(V) Job vouchers for
placement, readiness, and
postemployment services.
[(VI) Job retention or
support services if such
services are not otherwise
available.
[(VII) Not more than 6 months
of vocational educational or
job training.
Contracts or vouchers for job placement
services supported by such funds must
require that at least \1/2\ of the
payment occur after an eligible
individual placed into the workforce
has been in the workforce for 6 months.
[(ii) General eligibility.--An entity
that operates a project with funds
provided under this paragraph may
expend funds provided to the project
for the benefit of recipients of
assistance under the program funded
under this part of the State in which
the entity is located who--
[(I) has received assistance
under the State program funded
under this part (whether in
effect before or after the
amendments made by section 103
of the Personal Responsibility
and Work Opportunity
Reconciliation Act of 1996
first apply to the State) for
at least 30 months (whether or
not consecutive); or
[(II) within 12 months, will
become ineligible for
assistance under the State
program funded under this part
by reason of a durational limit
on such assistance, without
regard to any exemption
provided pursuant to section
408(a)(7)(C) that may apply to
the individual.
[(iii) Noncustodial parents.--An
entity that operates a project with
funds provided under this paragraph may
use the funds to provide services in a
form described in clause (i) to
noncustodial parents with respect to
whom the requirements of the following
subclauses are met:
[(I) The noncustodial parent
is unemployed, underemployed,
or having difficulty in paying
child support obligations.
[(II) At least 1 of the
following applies to a minor
child of the noncustodial
parent (with preference in the
determination of the
noncustodial parents to be
provided services under this
paragraph to be provided by the
entity to those noncustodial
parents with minor children who
meet, or who have custodial
parents who meet, the
requirements of item (aa)):
[(aa) The minor child
or the custodial parent
of the minor child
meets the requirements
of subclause (I) or
(II) of clause (ii).
[(bb) The minor child
is eligible for, or is
receiving, benefits
under the program
funded under this part.
[(cc) The minor child
received benefits under
the program funded
under this part in the
12-month period
preceding the date of
the determination but
no longer receives such
benefits.
[(dd) The minor child
is eligible for, or is
receiving, assistance
under the Food and
Nutrition Act of 2008,
benefits under the
supplemental security
income program under
title XVI of this Act,
medical assistance
under title XIX of this
Act, or child health
assistance under title
XXI of this Act.
[(III) In the case of a
noncustodial parent who becomes
enrolled in the project on or
after the date of the enactment
of this clause, the
noncustodial parent is in
compliance with the terms of an
oral or written personal
responsibility contract entered
into among the noncustodial
parent, the entity, and (unless
the entity demonstrates to the
Secretary that the entity is
not capable of coordinating
with such agency) the agency
responsible for administering
the State plan under part D,
which was developed taking into
account the employment and
child support status of the
noncustodial parent, which was
entered into not later than 30
(or, at the option of the
entity, not later than 90) days
after the noncustodial parent
was enrolled in the project,
and which, at a minimum,
includes the following:
[(aa) A commitment by
the noncustodial parent
to cooperate, at the
earliest opportunity,
in the establishment of
the paternity of the
minor child, through
voluntary
acknowledgement or
other procedures, and
in the establishment of
a child support order.
[(bb) A commitment by
the noncustodial parent
to cooperate in the
payment of child
support for the minor
child, which may
include a modification
of an existing support
order to take into
account the ability of
the noncustodial parent
to pay such support and
the participation of
such parent in the
project.
[(cc) A commitment by
the noncustodial parent
to participate in
employment or related
activities that will
enable the noncustodial
parent to make regular
child support payments,
and if the noncustodial
parent has not attained
20 years of age, such
related activities may
include completion of
high school, a general
equivalency degree, or
other education
directly related to
employment.
[(dd) A description
of the services to be
provided under this
paragraph, and a
commitment by the
noncustodial parent to
participate in such
services, that are
designed to assist the
noncustodial parent
obtain and retain
employment, increase
earnings, and enhance
the financial and
emotional contributions
to the well-being of
the minor child.
In order to protect custodial
parents and children who may be
at risk of domestic violence,
the preceding provisions of
this subclause shall not be
construed to affect any other
provision of law requiring a
custodial parent to cooperate
in establishing the paternity
of a child or establishing or
enforcing a support order with
respect to a child, or
entitling a custodial parent to
refuse, for good cause, to
provide such cooperation as a
condition of assistance or
benefit under any program,
shall not be construed to
require such cooperation by the
custodial parent as a condition
of participation of either
parent in the program
authorized under this
paragraph, and shall not be
construed to require a
custodial parent to cooperate
with or participate in any
activity under this clause. The
entity operating a project
under this clause with funds
provided under this paragraph
shall consult with domestic
violence prevention and
intervention organizations in
the development of the project.
[(iv) Targeting of hard to employ
individuals with characteristics
associated with long-term welfare
dependence.--An entity that operates a
project with funds provided under this
paragraph may expend not more than 30
percent of all funds provided to the
project for programs that provide
assistance in a form described in
clause (i)--
[(I) to recipients of
assistance under the program
funded under this part of the
State in which the entity is
located who have
characteristics associated with
long-term welfare dependence
(such as school dropout, teen
pregnancy, or poor work
history), including, at the
option of the State, by
providing assistance in such
form as a condition of
receiving assistance under the
State program funded under this
part;
[(II) to children--
[(aa) who have
attained 18 years of
age but not 25 years of
age; and
[(bb) who, before
attaining 18 years of
age, were recipients of
foster care maintenance
payments (as defined in
section 475(4)) under
part E or were in
foster care under the
responsibility of a
State;
[(III) to recipients of
assistance under the State
program funded under this part,
determined to have significant
barriers to self-sufficiency,
pursuant to criteria
established by the local
private industry council; or
[(IV) to custodial parents
with incomes below 100 percent
of the poverty line (as defined
in section 673(2) of the
Omnibus Budget Reconciliation
Act of 1981, including any
revision required by such
section, applicable to a family
of the size involved).
To the extent that the entity does not
expend such funds in accordance with
the preceding sentence, the entity
shall expend such funds in accordance
with clauses (ii) and (iii) and, as
appropriate, clause (v).
[(v) Authority to provide work-
related services to individuals who
have reached the 5 year limit.--An
entity that operates a project with
funds provided under this paragraph may
use the funds to provide assistance in
a form described in clause (i) of this
subparagraph to, or for the benefit of,
individuals who (but for section
408(a)(7)) would be eligible for
assistance under the program funded
under this part of the State in which
the entity is located.
[(vi) Relationship to other
provisions of this part.--
[(I) Rules governing use of
funds.--The rules of section
404, other than subsections
(b), (f), and (h) of section
404, shall not apply to a grant
made under this paragraph.
[(II) Rules governing
payments to states.--The
Secretary of Labor shall carry
out the functions otherwise
assigned by section 405 to the
Secretary of Health and Human
Services with respect to the
grants payable under this
paragraph.
[(III) Administration.--
Section 416 shall not apply to
the programs under this
paragraph.
[(vii) Prohibition against use of
grant funds for any other fund matching
requirement.--An entity to which funds
are provided under this paragraph shall
not use any part of the funds, nor any
part of State expenditures made to
match the funds, to fulfill any
obligation of any State, political
subdivision, or private industry
council to contribute funds under
section 403(b) or 418 or any other
provision of this Act or other Federal
law.
[(viii) Deadline for expenditure.--An
entity to which funds are provided
under this paragraph shall remit to the
Secretary of Labor any part of the
funds that are not expended within 5
years after the date the funds are so
provided.
[(ix) Regulations.--Within 90 days
after the date of the enactment of this
paragraph, the Secretary of Labor,
after consultation with the Secretary
of Health and Human Services and the
Secretary of Housing and Urban
Development, shall prescribe such
regulations as may be necessary to
implement this paragraph.
[(x) Reporting requirements.--The
Secretary of Labor, in consultation
with the Secretary of Health and Human
Services, States, and organizations
that represent State or local
governments, shall establish
requirements for the collection and
maintenance of financial and
participant information and the
reporting of such information by
entities carrying out activities under
this paragraph.
[(D) Definitions.--
[(i) Individuals with income less
than the poverty line.--For purposes of
this paragraph, the number of
individuals with an income that is less
than the poverty line shall be
determined for a fiscal year--
[(I) based on the methodology
used by the Bureau of the
Census to produce and publish
intercensal poverty data for
States and counties (or, in the
case of Puerto Rico, the Virgin
Islands, Guam, and American
Samoa, other poverty data
selected by the Secretary of
Labor); and
[(II) using data for the most
recent year for which such data
is available before the
beginning of the fiscal year.
[(ii) Private industry council.--As
used in this paragraph, the term
``private industry council'' means,
with respect to a service delivery
area, the private industry council or
local workforce development board
established for the local workforce
development area pursuant to title I of
the Workforce Innovation and
Opportunity Act, as appropriate.
[(iii) Service delivery area.--As
used in this paragraph, the term
``service delivery area'' shall have
the meaning given such term for
purposes of the Job Training
Partnership Act or.
[(E) Funding for indian tribes.--1 percent of
the amount specified in subparagraph (H) for
fiscal year 1998 and $15,000,000 of the amount
so specified for fiscal year 1999 shall be
reserved for grants to Indian tribes under
section 412(a)(3).
[(F) Funding for evaluations of welfare-to-
work programs.--0.6 percent of the amount
specified in subparagraph (H) for fiscal year
1998 and $9,000,000 of the amount so specified
for fiscal year 1999 shall be reserved for use
by the Secretary to carry out section 413(j).
[(G) Funding for evaluation of abstinence
education programs.--
[(i) In general.--0.2 percent of the
amount specified in subparagraph (H)
for fiscal year 1998 and $3,000,000 of
the amount so specified for fiscal year
1999 shall be reserved for use by the
Secretary to evaluate programs under
section 510, directly or through
grants, contracts, or interagency
agreements.
[(ii) Authority to use funds for
evaluations of welfare-to-work
programs.--Any such amount not required
for such evaluations shall be available
for use by the Secretary to carry out
section 413(j).
[(iii) Deadline for outlays.--Outlays
from funds used pursuant to clause (i)
for evaluation of programs under
section 510 shall not be made after
fiscal year 2005.
[(iv) Interim report.--Not later than
January 1, 2002, the Secretary shall
submit to the Congress an interim
report on the evaluations referred to
in clause (i).
[(H) Appropriations.--
[(i) In general.--Out of any money in
the Treasury of the United States not
otherwise appropriated, there are
appropriated for grants under this
paragraph--
[(I) $1,500,000,000 for
fiscal year 1998; and
[(II) $1,400,000,000 for
fiscal year 1999.
[(ii) Availability.--The amounts made
available pursuant to clause (i) shall
remain available for such period as is
necessary to make the grants provided
for in this paragraph.
[(I) Worker protections.--
[(i) Nondisplacement in work
activities.--
[(I) General prohibition.--
Subject to this clause, an
adult in a family receiving
assistance attributable to
funds provided under this
paragraph may fill a vacant
employment position in order to
engage in a work activity.
[(II) Prohibition against
violation of contracts.--A work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not violate an existing
contract for services or a
collective bargaining
agreement, and such a work
activity that would violate a
collective bargaining agreement
shall not be undertaken without
the written concurrence of the
labor organization and employer
concerned.
[(III) Other prohibitions.--
An adult participant in a work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not be employed or
assigned--
[(aa) when any other
individual is on layoff
from the same or any
substantially
equivalent job;
[(bb) if the employer
has terminated the
employment of any
regular employee or
otherwise caused an
involuntary reduction
in its workforce with
the intention of
filling the vacancy so
created with the
participant; or
[(cc) if the employer
has caused an
involuntary reduction
to less than full time
in hours of any
employee in the same or
a substantially
equivalent job.
[(ii) Health and safety.--Health and
safety standards established under
Federal and State law otherwise
applicable to working conditions of
employees shall be equally applicable
to working conditions of other
participants engaged in a work activity
under a program operated with funds
provided under this paragraph.
[(iii) Nondiscrimination.--In
addition to the protections provided
under the provisions of law specified
in section 408(c), an individual may
not be discriminated against by reason
of gender with respect to participation
in work activities engaged in under a
program operated with funds provided
under this paragraph.
[(iv) Grievance procedure.--
[(I) In general.--Each State
to which a grant is made under
this paragraph shall establish
and maintain a procedure for
grievances or complaints from
employees alleging violations
of clause (i) and participants
in work activities alleging
violations of clause (i), (ii),
or (iii).
[(II) Hearing.--The procedure
shall include an opportunity
for a hearing.
[(III) Remedies.--The
procedure shall include
remedies for violation of
clause (i), (ii), or (iii),
which may continue during the
pendency of the procedure, and
which may include--
[(aa) suspension or
termination of payments
from funds provided
under this paragraph;
[(bb) prohibition of
placement of a
participant with an
employer that has
violated clause (i),
(ii), or (iii);
[(cc) where
applicable,
reinstatement of an
employee, payment of
lost wages and
benefits, and
reestablishment of
other relevant terms,
conditions and
privileges of
employment; and
[(dd) where
appropriate, other
equitable relief.
[(IV) Appeals.--
[(aa) Filing.--Not
later than 30 days
after a grievant or
complainant receives an
adverse decision under
the procedure
established pursuant to
subclause (I), the
grievant or complainant
may appeal the decision
to a State agency
designated by the State
which shall be
independent of the
State or local agency
that is administering
the programs operated
with funds provided
under this paragraph
and the State agency
administering, or
supervising the
administration of, the
State program funded
under this part.
[(bb) Final
determination.--Not
later than 120 days
after the State agency
designated under item
(aa) receives a
grievance or complaint
made under the
procedure established
by a State pursuant to
subclause (I), the
State agency shall make
a final determination
on the appeal.
[(v) Rule of interpretation.--This
subparagraph shall not be construed to
affect the authority of a State to
provide or require workers'
compensation.
[(vi) Nonpreemption of state law.--
The provisions of this subparagraph
shall not be construed to preempt any
provision of State law that affords
greater protections to employees or to
other participants engaged in work
activities under a program funded under
this part than is afforded by such
provisions of this subparagraph.
[(J) Information disclosure.--If a State to
which a grant is made under section 403
establishes safeguards against the use or
disclosure of information about applicants or
recipients of assistance under the State
program funded under this part, the safeguards
shall not prevent the State agency
administering the program from furnishing to a
private industry council the names, addresses,
telephone numbers, and identifying case number
information in the State program funded under
this part, of noncustodial parents residing in
the service delivery area of the private
industry council, for the purpose of
identifying and contacting noncustodial parents
regarding participation in the program under
this paragraph.]
[(b) Contingency Fund.--
[(1) Establishment.--There is hereby established in
the Treasury of the United States a fund which shall be
known as the ``Contingency Fund for State Welfare
Programs'' (in this section referred to as the
``Fund'').
[(2) Deposits into fund.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal year
2018 such sums as are necessary for payment to the Fund
in a total amount not to exceed $608,000,000.
[(3) Grants.--
[(A) Provisional payments.--If an eligible
State submits to the Secretary a request for
funds under this paragraph during an eligible
month, the Secretary shall, subject to this
paragraph, pay to the State, from amounts
appropriated pursuant to paragraph (2), an
amount equal to the amount of funds so
requested.
[(B) Payment priority.--The Secretary shall
make payments under subparagraph (A) in the
order in which the Secretary receives requests
for such payments.
[(C) Limitations.--
[(i) Monthly payment to a state.--The
total amount paid to a single State
under subparagraph (A) during a month
shall not exceed \1/12\ of 20 percent
of the State family assistance grant.
[(ii) Payments to all states.--The
total amount paid to all States under
subparagraph (A) during fiscal year
2011 and 2012, respectively, shall not
exceed the total amount appropriated
pursuant to paragraph (2) for each such
fiscal year.
[(4) Eligible month.--As used in paragraph (3)(A),
the term ``eligible month'' means, with respect to a
State, a month in the 2-month period that begins with
any month for which the State is a needy State.
[(6) Annual reconciliation.--
[(A) In general.--Notwithstanding paragraph
(3), if the Secretary makes a payment to a
State under this subsection in a fiscal year,
then the State shall remit to the Secretary,
within 1 year after the end of the first
subsequent period of 3 consecutive months for
which the State is not a needy State, an amount
equal to the amount (if any) by which--
[(i) the total amount paid to the
State under paragraph (3) of this
subsection in the fiscal year; exceeds
[(ii) the product of--
[(I) the Federal medical
assistance percentage for the
State (as defined in section
1905(b), as such section was in
effect on September 30, 1995);
[(II) the State's
reimbursable expenditures for
the fiscal year; and
[(III) \1/12\ times the
number of months during the
fiscal year for which the
Secretary made a payment to the
State under such paragraph (3).
[(B) Definitions.--As used in subparagraph
(A):
[(i) Reimbursable expenditures.--The
term ``reimbursable expenditures''
means, with respect to a State and a
fiscal year, the amount (if any) by
which--
[(I) countable State
expenditures for the fiscal
year; exceeds
[(II) historic State
expenditures (as defined in
section 409(a)(7)(B)(iii)),
excluding any amount expended
by the State for child care
under subsection (g) or (i) of
section 402 (as in effect
during fiscal year 1994) for
fiscal year 1994.
[(ii) Countable state expenditures.--
The term ``countable expenditures''
means, with respect to a State and a
fiscal year--
[(I) the qualified State
expenditures (as defined in
section 409(a)(7)(B)(i) (other
than the expenditures described
in subclause (I)(bb) of such
section)) under the State
program funded under this part
for the fiscal year; plus
[(II) any amount paid to the
State under paragraph (3)
during the fiscal year that is
expended by the State under the
State program funded under this
part.
[(C) Adjustment of state remittances.--
[(i) In general.--The amount
otherwise required by subparagraph (A)
to be remitted by a State for a fiscal
year shall be increased by the lesser
of--
[(I) the total adjustment for
the fiscal year, multiplied by
the adjustment percentage for
the State for the fiscal year;
or
[(II) the unadjusted net
payment to the State for the
fiscal year.
[(ii) Total adjustment.--As used in
clause (i), the term ``total
adjustment'' means--
[(I) in the case of fiscal
year 1998, $2,000,000;
[(II) in the case of fiscal
year 1999, $9,000,000;
[(III) in the case of fiscal
year 2000, $16,000,000; and
[(IV) in the case of fiscal
year 2001, $13,000,000.
[(iii) Adjustment percentage.--As
used in clause (i), the term
``adjustment percentage'' means, with
respect to a State and a fiscal year--
[(I) the unadjusted net
payment to the State for the
fiscal year; divided by
[(II) the sum of the
unadjusted net payments to all
States for the fiscal year.
[(iv) Unadjusted net payment.--As
used in this subparagraph, the term,
``unadjusted net payment'' means with
respect to a State and a fiscal year--
[(I) the total amount paid to
the State under paragraph (3)
in the fiscal year; minus
[(II) the amount that, in the
absence of this subparagraph,
would be required by
subparagraph (A) or by section
409(a)(10) to be remitted by
the State in respect of the
payment.
[(7) State defined.--As used in this subsection, the
term ``State'' means each of the 50 States and the
District of Columbia.
[(8) Annual reports.--The Secretary shall annually
report to the Congress on the status of the Fund.]
SEC. 404. USE OF GRANTS.
(a) General Rules.--Subject to this part, a State to which a
grant is made under section 403 may use the grant--
(1) in any manner that is reasonably calculated to
accomplish the purpose of this part, including to
provide low income households with assistance in
meeting home heating and cooling costs; or
(2) in any manner that the State was authorized to
use amounts received under part A or F, as such parts
were in effect on September 30, 1995, or (at the option
of the State) August 21, 1996.
(b) Limitation on Use of Grant for Administrative Purposes.--
(1) Limitation.--A State to which a grant is made
under section 403 shall not expend more than 15 percent
of the grant for administrative purposes.
[(2) Exception.--Paragraph (1) shall not apply to the
use of a grant for information technology and
computerization needed for tracking or monitoring
required by or under this part.]
(2) Exceptions.--Paragraph (1) of this subsection
shall not apply to the use of a grant for--
(A) information technology and
computerization needed for tracking,
monitoring, or data collection required by or
under this part; or
(B) case management activities to carry out
section 408(b).
(c) Authority To Treat Interstate Immigrants Under Rules of
Former State.--A State operating a program funded under this
part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another State
if the family has moved to the State from the other State and
has resided in the State for less than 12 months.
(d) Authority To Use Portion of Grant for Other Purposes.--
[(1) In general.--Subject to paragraph (2), a State
may use not more than 30 percent of the amount of any
grant made to the State under section 403(a) for a
fiscal year to carry out a State program pursuant to
any or all of the following provisions of law:
[(A) Subtitle A of title XX of this Act.
[(B) The Child Care and Development Block
Grant Act of 1990.
[(2) Limitation on amount transferable to subtitle 1
of title xx programs.--
[(A) In general.--A State may use not more
than the applicable percent of the amount of
any grant made to the State under section
403(a) for a fiscal year to carry out State
programs pursuant to subtitle 1 of title XX.
[(B) Applicable percent.--For purposes of
subparagraph (A), the applicable percent is
4.25 percent in the case of fiscal year 2001
and each succeeding fiscal year.
[(3) Applicable rules.--
[(A) In general.--Except as provided in
subparagraph (B) of this paragraph, any amount
paid to a State under this part that is used to
carry out a State program pursuant to a
provision of law specified in paragraph (1)
shall not be subject to the requirements of
this part, but shall be subject to the
requirements that apply to Federal funds
provided directly under the provision of law to
carry out the program, and the expenditure of
any amount so used shall not be considered to
be an expenditure under this part.
[(B) Exception relating to subtitle 1 of
title xx programs.--All amounts paid to a State
under this part that are used to carry out
State programs pursuant to subtitle 1 of title
XX shall be used only for programs and services
to children or their families whose income is
less than 200 percent of the income official
poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus
Budget Reconciliation Act of 1981) applicable
to a family of the size involved.]
(1) In general.--A State may use not more than 50
percent of the grant made to the State under section
403(a)(1) to carry out a State program pursuant to any
or all of the following provisions of law:
(A) The Child Care and Development Block
Grant Act of 1990.
(B) Title I of the Workforce Innovation and
Opportunity Act.
(C) Subpart 1 of part B of this title.
(2) Limitation on amount transferrable to subpart 1
of part b of this title.--
(A) In general.--A State may use not more
than the applicable percentage of the amount of
a grant made to the State under section
403(a)(1) to carry out State programs pursuant
to subpart 1 of part B.
(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage is
10 percent.
(3) Applicable rules.--
(A) In general.--Except as provided in
subparagraph (B) of this paragraph, any amount
paid to a State under this part that is used to
carry out a State program pursuant to a
provision of law specified in paragraph (1)
shall not be subject to the requirements of
this part, but shall be subject to the
requirements that apply to Federal funds
provided directly under the provision of law to
carry out the program, and the expenditure of
any amount so used shall not be considered to
be an expenditure under this part.
(B) Funds transferred to the wioa.--In the
case of funds transferred under paragraph
(1)(B) of this subsection--
(i) all of the funds will be used to
support families eligible for
assistance under the State program
funded under this part; and
(ii) not more than 15 percent of the
funds will be reserved for statewide
workforce investment activities
referred to in section 128(a)(1) of the
Workforce Innovation and Opportunity
Act.
(4) Exclusion of states excluding the state jobs
program as a mandatory one-stop partner under the
wioa.--The authority provided by this subsection may
not be exercised by a State that has provided the
notification referred to in section 407(a)(3)(D).
[(e) Authority to Carry Over Certain Amounts for Benefits or
Services or for Future Contingencies.--A State or tribe may use
a grant made to the State or tribe under this part for any
fiscal year to provide, without fiscal year limitation, any
benefit or service that may be provided under the State or
tribal program funded under this part.]
(e) Deadlines for Obligation and Expenditures of Funds by
States.--
(1) In general.--Except as provided in paragraph (2),
a State to which funds are paid under section 403(a)(1)
shall obligate the funds within 2 years after the date
the funds are so paid, and shall expend the funds
within 3 years after such date.
(2) Exception for limited amount of funds set aside
for future use.--A State to which funds are paid under
section 403(a)(1) may reserve not more than 15 percent
of the funds for future use in the State program funded
under this part.
(f) Authority to Operate Employment Placement Program.--A
State to which a grant is made under section 403 may use the
grant to make payments (or provide job placement vouchers) to
State-approved public and private job placement agencies that
provide employment placement services to individuals who
receive assistance under the State program funded under this
part.
(g) Implementation of Electronic Benefit Transfer System.--A
State to which a grant is made under section 403 is encouraged
to implement an electronic benefit transfer system for
providing assistance under the State program funded under this
part, and may use the grant for such purpose.
(h) Use of Funds for Individual Development Accounts.--
(1) In general.--A State to which a grant is made
under section 403 may use the grant to carry out a
program to fund individual development accounts (as
defined in paragraph (2)) established by individuals
eligible for assistance under the State program funded
under this part.
(2) Individual development accounts.--
(A) Establishment.--Under a State program
carried out under paragraph (1), an individual
development account may be established by or on
behalf of an individual eligible for assistance
under the State program operated under this
part for the purpose of enabling the individual
to accumulate funds for a qualified purpose
described in subparagraph (B).
(B) Qualified purpose.--A qualified purpose
described in this subparagraph is 1 or more of
the following, as provided by the qualified
entity providing assistance to the individual
under this subsection:
(i) Postsecondary educational
expenses.--Postsecondary educational
expenses paid from an individual
development account directly to an
eligible educational institution.
(ii) First home purchase.--Qualified
acquisition costs with respect to a
qualified principal residence for a
qualified first-time homebuyer, if paid
from an individual development account
directly to the persons to whom the
amounts are due.
(iii) Business capitalization.--
Amounts paid from an individual
development account directly to a
business capitalization account which
is established in a federally insured
financial institution and is restricted
to use solely for qualified business
capitalization expenses.
(C) Contributions to be from earned income.--
An individual may only contribute to an
individual development account such amounts as
are derived from earned income, as defined in
section 911(d)(2) of the Internal Revenue Code
of 1986.
(D) Withdrawal of funds.--The Secretary shall
establish such regulations as may be necessary
to ensure that funds held in an individual
development account are not withdrawn except
for 1 or more of the qualified purposes
described in subparagraph (B).
(3) Requirements.--
(A) In general.--An individual development
account established under this subsection shall
be a trust created or organized in the United
States and funded through periodic
contributions by the establishing individual
and matched by or through a qualified entity
for a qualified purpose (as described in
paragraph (2)(B)).
(B) Qualified entity.--As used in this
subsection, the term ``qualified entity''
means--
(i) a not-for-profit organization
described in section 501(c)(3) of the
Internal Revenue Code of 1986 and
exempt from taxation under section
501(a) of such Code; or
(ii) a State or local government
agency acting in cooperation with an
organization described in clause (i).
(4) No reduction in benefits.--Notwithstanding any
other provision of Federal law (other than the Internal
Revenue Code of 1986) that requires consideration of 1
or more financial circumstances of an individual, for
the purpose of determining eligibility to receive, or
the amount of, any assistance or benefit authorized by
such law to be provided to or for the benefit of such
individual, funds (including interest accruing) in an
individual development account under this subsection
shall be disregarded for such purpose with respect to
any period during which such individual maintains or
makes contributions into such an account.
(5) Definitions.--As used in this subsection--
(A) Eligible educational institution.--The
term ``eligible educational institution'' means
the following:
(i) An institution described in
section 481(a)(1) or 1201(a) of the
Higher Education Act of 1965 (20 U.S.C.
1088(a)(1) or 1141(a)), as such
sections are in effect on the date of
the enactment of this subsection.
(ii) An area vocational education
school (as defined in subparagraph (C)
or (D) of section 521(4) of the Carl D.
Perkins Vocational and Applied
Technology Education Act (20 U.S.C.
2471(4))) which is in any State (as
defined in section 521(33) of such
Act), as such sections are in effect on
the date of the enactment of this
subsection.
(B) Post-secondary educational expenses.--The
term ``post-secondary educational expenses''
means--
(i) tuition and fees required for the
enrollment or attendance of a student
at an eligible educational institution,
and
(ii) fees, books, supplies, and
equipment required for courses of
instruction at an eligible educational
institution.
(C) Qualified acquisition costs.--The term
``qualified acquisition costs'' means the costs
of acquiring, constructing, or reconstructing a
residence. The term includes any usual or
reasonable settlement, financing, or other
closing costs.
(D) Qualified business.--The term ``qualified
business'' means any business that does not
contravene any law or public policy (as
determined by the Secretary).
(E) Qualified business capitalization
expenses.--The term ``qualified business
capitalization expenses'' means qualified
expenditures for the capitalization of a
qualified business pursuant to a qualified
plan.
(F) Qualified expenditures.--The term
``qualified expenditures'' means expenditures
included in a qualified plan, including
capital, plant, equipment, working capital, and
inventory expenses.
(G) Qualified first-time homebuyer.--
(i) In general.--The term ``qualified
first-time homebuyer'' means a taxpayer
(and, if married, the taxpayer's
spouse) who has no present ownership
interest in a principal residence
during the 3-year period ending on the
date of acquisition of the principal
residence to which this subsection
applies.
(ii) Date of acquisition.--The term
``date of acquisition'' means the date
on which a binding contract to acquire,
construct, or reconstruct the principal
residence to which this subparagraph
applies is entered into.
(H) Qualified plan.--The term ``qualified
plan'' means a business plan which--
(i) is approved by a financial
institution, or by a nonprofit loan
fund having demonstrated fiduciary
integrity,
(ii) includes a description of
services or goods to be sold, a
marketing plan, and projected financial
statements, and
(iii) may require the eligible
individual to obtain the assistance of
an experienced entrepreneurial advisor.
(I) Qualified principal residence.--The term
``qualified principal residence'' means a
principal residence (within the meaning of
section 1034 of the Internal Revenue Code of
1986), the qualified acquisition costs of which
do not exceed 100 percent of the average area
purchase price applicable to such residence
(determined in accordance with paragraphs (2)
and (3) of section 143(e) of such Code).
(i) Sanction Welfare Recipients for Failing To Ensure That
Minor Dependent Children Attend School.--A State to which a
grant is made under section 403 shall not be prohibited from
sanctioning a family that includes an adult who has received
assistance under any State program funded under this part
attributable to funds provided by the Federal Government or
under the supplemental nutrition assistance program, as defined
in section 3(l) of the Food and Nutrition Act of 2008, if such
adult fails to ensure that the minor dependent children of such
adult attend school as required by the law of the State in
which the minor children reside.
(j) Requirement for High School Diploma or Equivalent.--A
State to which a grant is made under section 403 shall not be
prohibited from sanctioning a family that includes an adult who
is older than age 20 and younger than age 51 and who has
received assistance under any State program funded under this
part attributable to funds provided by the Federal Government
or under the supplemental nutrition assistance program, as
defined in section 3(l) of the Food and Nutrition Act of 2008,
if such adult does not have, or is not working toward
attaining, a secondary school diploma or its recognized
equivalent unless such adult has been determined in the
judgment of medical, psychiatric, or other appropriate
professionals to lack the requisite capacity to complete
successfully a course of study that would lead to a secondary
school diploma or its recognized equivalent.
[(k) Limitations on Use of Grant for Matching Under Certain
Federal Transportation Program.--
[(1) Use limitations.--A State to which a grant is
made under section 403 may not use any part of the
grant to match funds made available under section 3037
of the Transportation Equity Act for the 21st Century,
unless--
[(A) the grant is used for new or expanded
transportation services (and not for
construction) that benefit individuals
described in subparagraph (C), and not to
subsidize current operating costs;
[(B) the grant is used to supplement and not
supplant other State expenditures on
transportation;
[(C) the preponderance of the benefits
derived from such use of the grant accrues to
individuals who are--
[(i) recipients of assistance under
the State program funded under this
part;
[(ii) former recipients of such
assistance;
[(iii) noncustodial parents who are
described in section 403(a)(5)(C)(iii);
and
[(iv) low-income individuals who are
at risk of qualifying for such
assistance; and
[(D) the services provided through such use
of the grant promote the ability of such
recipients to engage in work activities (as
defined in section 407(d)).
[(2) Amount limitation.--From a grant made to a State
under section 403(a), the amount that a State uses to
match funds described in paragraph (1) of this
subsection shall not exceed the amount (if any) by
which 30 percent of the total amount of the grant
exceeds the amount (if any) of the grant that is used
by the State to carry out any State program described
in subsection (d)(1) of this section.
[(3) Rule of interpretation.--The provision by a
State of a transportation benefit under a program
conducted under section 3037 of the Transportation
Equity Act for the 21st Century, to an individual who
is not otherwise a recipient of assistance under the
State program funded under this part, using funds from
a grant made under section 403(a) of this Act, shall
not be considered to be the provision of assistance to
the individual under the State program funded under
this part.]
(k) Prohibitions.--
(1) Use of funds for persons with income greater than
twice the poverty line.--A State to which a grant is
made under this part shall not use the grant to provide
any assistance or services to a family whose monthly
income exceeds twice the poverty line (as defined by
the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the
Omnibus Budget Reconciliation Act of 1981 (42 U.S.C.
9902(2))).
(2) Direct spending on child care services or
activities or child welfare services or activities.--A
State to which a grant is made under this part shall
not use the grant for direct spending on child care
services or activities or direct spending on child
welfare services or activities.
(l) Applicability of Improper Payments Laws.--
(1) In general.--The Improper Payments Information
Act of 2002 and the Improper Payments Elimination and
Recovery Act of 2010 shall apply to a State in respect
of the State program funded under this part in the same
manner in which such Acts apply to a Federal agency.
(2) Regulations.--Within 2 years after the date of
the enactment of this subsection, the Secretary shall
prescribe regulations governing how a State reviews and
reports improper payments under the State program
funded under this part.
* * * * * * *
[SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
[(a) Loan Authority.--
[(1) In general.--The Secretary shall make loans to
any loan-eligible State, for a period to maturity of
not more than 3 years.
[(2) Loan-eligible state.--As used in paragraph (1),
the term ``loan-eligible State'' means a State against
which a penalty has not been imposed under section
409(a)(1).
[(b) Rate of Interest.--The Secretary shall charge and
collect interest on any loan made under this section at a rate
equal to the current average market yield on outstanding
marketable obligations of the United States with remaining
periods to maturity comparable to the period to maturity of the
loan.
[(c) Use of Loan.--A State shall use a loan made to the State
under this section only for any purpose for which grant amounts
received by the State under section 403(a) may be used,
including--
[(1) welfare anti-fraud activities; and
[(2) the provision of assistance under the State
program to Indian families that have moved from the
service area of an Indian tribe with a tribal family
assistance plan approved under section 412.
[(d) Limitation on Total Amount of Loans to a State.--The
cumulative dollar amount of all loans made to a State under
this section during fiscal years 1997 through 2003 shall not
exceed 10 percent of the State family assistance grant.
[(e) Limitation on Total Amount of Outstanding Loans.--The
total dollar amount of loans outstanding under this section may
not exceed $1,700,000,000.
[(f) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated such sums as may be necessary for the cost of
loans under this section.]
SEC. 406. TECHNICAL ASSISTANCE.
(a) In General.--The Secretary shall provide technical
assistance to States and Indian tribes (which may include
providing technical assistance on a reimbursable basis), which
shall be provided by qualified experts on practices grounded in
scientifically valid research, where appropriate, to support
activities related publication of State performance under
section 407(b) and to carry out State and tribal programs
funded under this part.
(b) Reservation of Funds.--The Secretary shall reserve not
more than 0.25 percent of the amount appropriated by section
403(a)(1)(C) for a fiscal year to carry out subsection (a) of
this section.
SEC. 407. MANDATORY WORK REQUIREMENTS.
[(a) Participation Rate Requirements.--
[(1) All families.--A State to which a grant is made
under section 403 for a fiscal year shall achieve the
minimum participation rate specified in the following
table for the fiscal year with respect to all families
receiving assistance under the State program funded
under this part or any other State program funded with
qualified State expenditures (as defined in section
409(a)(7)(B)(i)):
The minimum
participation
[If the fiscal year is: rate is:
1997........................................ 25
1998........................................ 30
1999........................................ 35
2000........................................ 40
2001........................................ 45
2002 or thereafter.......................... 50.
[(2) 2-parent families.--A State to which a grant is
made under section 403 for a fiscal year shall achieve
the minimum participation rate specified in the
following table for the fiscal year with respect to 2-
parent families receiving assistance under the State
program funded under this part or any other State
program funded with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)):
The minimum
participation
[If the fiscal year is: rate is:
1997........................................ 75
1998........................................ 75
1999 or thereafter.......................... 90.
[(b) Calculation of Participation Rates.--
[(1) All families.--
[(A) Average monthly rate.--For purposes of
subsection (a)(1), the participation rate for
all families of a State for a fiscal year is
the average of the participation rates for all
families of the State for each month in the
fiscal year.
[(B) Monthly participation rates.--The
participation rate of a State for all families
of the State for a month, expressed as a
percentage, is--
[(i) the number of families receiving
assistance under the State program
funded under this part or any other
State program funded with qualified
State expenditures (as defined in
section 409(a)(7)(B)(i)) that include
an adult or a minor child head of
household who is engaged in work for
the month; divided by
[(ii) the amount by which--
[(I) the number of families
receiving such assistance
during the month that include
an adult or a minor child head
of household receiving such
assistance; exceeds
[(II) the number of families
receiving such assistance that
are subject in such month to a
penalty described in subsection
(e)(1) but have not been
subject to such penalty for
more than 3 months within the
preceding 12-month period
(whether or not consecutive).
[(2) 2-parent families.--
[(A) Average monthly rate.--For purposes of
subsection (a)(2), the participation rate for
2-parent families of a State for a fiscal year
is the average of the participation rates for
2-parent families of the State for each month
in the fiscal year.
[(B) Monthly participation rates.--The
participation rate of a State for 2-parent
families of the State for a month shall be
calculated by use of the formula set forth in
paragraph (1)(B), except that in the formula
the term ``number of 2-parent families'' shall
be substituted for the term ``number of
families'' each place such latter term appears.
[(C) Family with a disabled parent not
treated as a 2-parent family.--A family that
includes a disabled parent shall not be
considered a 2-parent family for purposes of
subsections (a) and (b) of this section.
[(3) Pro rata reduction of participation rate due to
caseload reductions not required by federal law and not
resulting from changes in state eligibility criteria.--
[(A) In general.--The Secretary shall
prescribe regulations for reducing the minimum
participation rate otherwise required by this
section for a fiscal year by the number of
percentage points equal to the number of
percentage points (if any) by which--
[(i) the average monthly number of
families receiving assistance during
the immediately preceding fiscal year
under the State program funded under
this part or any other State program
funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)) is less than
[(ii) the average monthly number of
families that received assistance under
any State program referred to in clause
(i) during fiscal year 2005.
The minimum participation rate shall not be
reduced to the extent that the Secretary
determines that the reduction in the number of
families receiving such assistance is required
by Federal law.
[(B) Eligibility changes not counted.--The
regulations required by subparagraph (A) shall
not take into account families that are
diverted from a State program funded under this
part as a result of differences in eligibility
criteria under a State program funded under
this part and the eligibility criteria in
effect during fiscal year 2005. Such
regulations shall place the burden on the
Secretary to prove that such families were
diverted as a direct result of differences in
such eligibility criteria.
[(4) State option to include individuals receiving
assistance under a tribal family assistance plan or
tribal work program.--For purposes of paragraphs (1)(B)
and (2)(B), a State may, at its option, include
families in the State that are receiving assistance
under a tribal family assistance plan approved under
section 412 or under a tribal work program to which
funds are provided under this part.
[(5) State option for participation requirement
exemptions.--For any fiscal year, a State may, at its
option, not require an individual who is a single
custodial parent caring for a child who has not
attained 12 months of age to engage in work, and may
disregard such an individual in determining the
participation rates under subsection (a) for not more
than 12 months.]
(a) Performance Accountability and Work Outcomes.--
(1) Purpose.--The purpose of this subsection is to
provide for the establishment of performance
accountability measures to assess the effectiveness of
States in increasing employment, retention, and
advancement among families receiving assistance under
the State program funded under this part.
(2) In general.--A State to which a grant is made
under section 403 for a fiscal year shall achieve the
requisite level of performance on an indicator
described in paragraph (3)(B) of this subsection for
the fiscal year.
(3) Measuring state performance.--
(A) In general.--Each State, in consultation
with the Secretary, shall collect and submit to
the Secretary the information necessary to
measure the level of performance of the State
for each indicator described in subparagraph
(B), for fiscal year 2020 and each fiscal year
thereafter, and the Secretary shall use the
information collected for fiscal year 2020 to
establish the baseline level of performance for
each State for each such indicator.
(B) Indicators of performance.--The
indicators described in this subparagraph, for
a fiscal year, are the following:
(i) The percentage of individuals who
were work-eligible individuals as of
the time of exit from the program, who
are in unsubsidized employment during
the 2nd quarter after the exit.
(ii) The percentage of individuals
who were work-eligible individuals who
were in unsubsidized employment in the
2nd quarter after the exit, who are
also in unsubsidized employment during
the 4th quarter after the exit.
(iii) The median earnings of
individuals who were work-eligible
individuals as of the time of exit from
the program, who are in unsubsidized
employment during the 2nd quarter after
the exit.
(iv) The percentage of individuals
who have not attained 24 years of age,
are attending high school or enrolled
in an equivalency program, and are
work-eligible individuals or were work-
eligible individuals as of the time of
exit from the program, who obtain a
high school degree or its recognized
equivalent while receiving assistance
under the State program funded under
this part or within 1 year after the
exit.
(C) Levels of performance.--
(i) In general.--For each State
submitting a State plan pursuant to
section 402(a), there shall be
established, in accordance with this
subparagraph, levels of performance for
each of the indicators described in
subparagraph (B).
(ii) Weight.--The weight assigned to
such an indicator shall be the
following:
(I) 40 percent, in the case
of the indicator described in
subparagraph (B)(i).
(II) 25 percent, in the case
of the indicator described in
subparagraph (B)(ii).
(III) 25 percent, in the case
of the indicator described in
subparagraph (B)(iii).
(IV) 10 percent, in the case
of the indicator described in
subparagraph (B)(iv).
(iii) Agreement on requisite
performance level for each indicator.--
(I) In general.--The
Secretary and the State shall
negotiate the requisite level
of performance for the State
with respect to each indicator
described in clause (ii), for
each of fiscal years 2020
through 2023, and in the case
of each of fiscal years 2021
through 2023, shall do so
before the beginning of the
respective fiscal year.
(II) Requirements in
establishing performance
levels.--In establishing the
requisite levels of
performance, the State and the
Secretary shall--
(aa) take into
account how the levels
involved compare with
the levels established
for other States;
(bb) ensure the
levels involved are
adjusted, using the
objective statistical
model referred to in
clause (v), based on--
(AA) the
differences
among States in
economic
conditions,
including
differences in
unemployment
rates or
employment
losses or gains
in particular
industries; and
(BB) the
characteristics
of participants
on entry into
the program,
including
indicators of
prior work
history, lack
of educational
or occupational
skills
attainment, or
other factors
that may affect
employment and
earnings; and
(CC) take
into account
the extent to
which the
levels involved
promote
continuous
improvement in
performance by
each State.
(iv) Revisions based on economic
conditions and individuals receiving
assistance during the fiscal year.--The
Secretary shall, in accordance with the
objective statistical model referred to
in clause (v), revise the requisite
levels of performance for a State and a
fiscal year to reflect the economic
conditions and characteristics of the
relevant individuals in the State
during the fiscal year.
(v) Statistical adjustment model.--
The Secretary shall use an objective
statistical model to make adjustments
to the requisite levels of performance
for the economic conditions and
characteristics of the relevant
individuals, and shall consult with the
Secretary of Labor to develop a model
that is the same as or similar to the
model described in section
116(b)(3)(A)(viii) of the Workforce
Innovation and Opportunity Act (29
U.S.C. 3141(b)(3)(A)(viii)).
(vi) Definition of exit.--In this
subsection, the term ``exit'' means,
with respect to a State program funded
under this part, ceases to a receive a
JOBS benefit under the program.
(D) State option to establish common exit
measures.--Notwithstanding subparagraph (C)(vi)
of this paragraph, a State that has not
provided the notification under section
121(b)(1)(C)(ii) of the Workforce Innovation
and Opportunity Act to exclude the State
program funded under this part as a mandatory
one-stop partner may adopt an alternative
definition of ``exit'' for the purpose of
creating common exit measures to improve
alignment with workforce programs operated
under title I of such Act.
(E) Regulations.--In order to ensure
nationwide comparability of data, the
Secretary, after consultation the Secretary of
Labor and with States, shall issue regulations
governing the establishment of the performance
accountability system under this subsection and
a template for performance reports to be used
by all States consistent with subsection (b).
(b) Publication of State Performance.--The Secretary shall,
directly or through the use of grants or contracts, establish
and operate an Internet website that is accessible to the
public, with a dashboard that is regularly updated and provides
easy-to-understand information on the performance of each State
program funded under this part, including a profile for each
such program, expressed by use of a template, which shall
include--
(1) information on the indicators and requisite
performance levels established for the State under
subsection (a), including, with respect to each such
level, whether the State achieves, exceeds, or fails to
achieve the level on an ongoing basis, including--
(A) information on any adjustments made to
the requisite levels using the statistical
adjustment model described in subsection
(a)(3)(D)(v); and
(B) a grade based on the overall performance
of the State, as determined by the Secretary
and in consultation with the State, and the
overall performance shall be graded based on
the performance indicators and weights for each
such indicator as described in subsection (a);
(2) information reported under section 411 on the
characteristics and demographics of individuals
receiving assistance under the State program,
including--
(A) the number and percentage of child-only
cases and reason why the cases are child-only;
and
(B) the average weekly number of hours that
each work-eligible individual in the State
program participates in work activities,
including a separate section showing the number
and percentage of the work-eligible individuals
with zero hours of the participation and the
reason for non-participation;
(3) information on the results of improper payments
reviews;
(4) a link to the State plan approved under section
402; and
(5) information regarding any penalty imposed, or
other corrective action taken, by the Secretary against
a State for failing to achieve a requisite performance
level or any other requirement imposed by or under this
part.
(c) Engaged in Work.--
(1) General rules.--
(A) All families.--[For purposes of
subsection (b)(1)(B)(i), a] A recipient is
engaged in work for a month in a fiscal year if
the recipient is participating in work
activities for at least the minimum average
number of hours per week specified in the
following table during the month[, not fewer
than 20 hours per week of which are
attributable to an activity described in
paragraph (1), (2), (3), (4), (5), (6), (7),
(8), or (12) of subsection (d), subject to this
subsection]:
The minimum
If the month is average number of
in fiscal year: hours per week is:
1997........................................ 20
1998........................................ 20
1999........................................ 25
2000 or thereafter.......................... 30.
(B) 2-parent families.--[For purposes of
subsection (b)(2)(B), an] An individual is
engaged in work for a month in a fiscal year
if--
(i) the individual and the other
parent in the family are participating
in work activities for a total of at
least 35 hours per week during the
month[, not fewer than 30 hours per
week of which are attributable to an
activity described in paragraph (1),
(2), (3), (4), (5), (6), (7), (8), or
(12) of subsection (d), subject to this
subsection]; and
(ii) if the family of the individual
receives federally-funded child care
assistance and an adult in the family
is not disabled or caring for a
severely disabled child, the individual
and the other parent in the family are
participating in work activities for a
total of at least 55 hours per week
during the month[, not fewer than 50
hours per week of which are
attributable to an activity described
in paragraph (1), (2), (3), (4), (5),
(6), (7), (8), or (12) of subsection
(d)].
(2) Limitations and special rules.--
[(A) Number of weeks for which job search
counts as work.--
[(i) Limitation.--Notwithstanding
paragraph (1) of this subsection, an
individual shall not be considered to
be engaged in work by virtue of
participation in an activity described
in subsection (d)(6) of a State program
funded under this part or any other
State program funded with qualified
State expenditures (as defined in
section 409(a)(7)(B)(i)), after the
individual has participated in such an
activity for 6 weeks (or, if the
unemployment rate of the State is at
least 50 percent greater than the
unemployment rate of the United States
or the State is a needy State (within
the meaning of section 403(b)(5)), 12
weeks), or if the participation is for
a week that immediately follows 4
consecutive weeks of such
participation.
[(ii) Limited authority to count less
than full week of participation.--For
purposes of clause (i) of this
subparagraph, on not more than 1
occasion per individual, the State
shall consider participation of the
individual in an activity described in
subsection (d)(6) for 3 or 4 days
during a week as a week of
participation in the activity by the
individual.
[(B)] (A) Single parent or relative with
child under age 6 deemed to be meeting work
participation requirements if parent or
relative is engaged in work for 20 hours per
week.--[For purposes of determining monthly
participation rates under subsection
(b)(1)(B)(i), a] A recipient who is the only
parent or caretaker relative in the family of a
child who has not attained 6 years of age is
deemed to be engaged in work for a month if the
recipient is engaged in work for an average of
at least 20 hours per week during the month.
[(C)] (B) Single teen head of household or
married teen who maintains satisfactory school
attendance deemed to be meeting work
participation requirements.--[For purposes of
determining monthly participation rates under
subsection (b)(1)(B)(i), a] A recipient who is
married or a head of household and has not
attained 20 years of age is deemed to be
engaged in work for a month in a fiscal year if
the recipient--
(i) maintains satisfactory attendance
at secondary school or the equivalent
during the month; or
(ii) participates in education
directly related to employment for an
average of at least 20 hours per week
during the month.
[(D) Limitation on number of persons who may
be treated as engaged in work by reason of
participation in educational activities.--For
purposes of determining monthly participation
rates under paragraphs (1)(B)(i) and (2)(B) of
subsection (b), not more than 30 percent of the
number of individuals in all families and in 2-
parent families, respectively, in a State who
are treated as engaged in work for a month may
consist of individuals who are determined to be
engaged in work for the month by reason of
participation in vocational educational
training, or (if the month is in fiscal year
2000 or thereafter) deemed to be engaged in
work for the month by reason of subparagraph
(C) of this paragraph.]
(d) Work Activities Defined.--As used in this section, the
term ``work activities'' means--
(1) unsubsidized employment;
(2) subsidized private sector employment;
(3) subsidized public sector employment;
(4) work experience (including work associated with
the refurbishing of publicly assisted housing) if
sufficient private sector employment is not available;
(5) on-the-job training, including apprenticeship;
(6) job search and job readiness assistance;
(7) community service programs;
(8) vocational educational training [(not to exceed
12 months with respect to any individual)], including
career technical education;
(9) job skills training directly related to
employment;
(10) education directly related to employment, in the
case of a recipient who has not received a high school
diploma or a certificate of high school equivalency;
(11) satisfactory attendance at secondary school or
in a course of study leading to a certificate of
general equivalence, in the case of a recipient who has
not completed secondary school or received such a
certificate; [and]
(12) the provision of child care services to an
individual who is participating in a community service
program[.]; and
(13) any other activity that the State determines is
necessary to improve the employment, earnings, or other
outcomes of a recipient of assistance that are used in
determining a level of performance by the State for
purposes of subsection (a), as described in the State
plan approved under section 402.
(e) Penalties Against Individuals.--
(1) In general.--Except as provided in paragraph (2),
if an individual in a family receiving assistance under
the State program funded under this part [or any other
State program funded with qualified State expenditures
(as defined in section 409(a)(7)(B)(i))] refuses to
engage in work required in accordance with this
section, the State shall--
(A) reduce the amount of assistance otherwise
payable to the family pro rata (or more, at the
option of the State) with respect to any period
during a month in which the individual so
refuses; or
(B) terminate such assistance,
subject to such good cause and other exceptions as the
State may establish.
(2) Exception.--Notwithstanding paragraph (1), a
State may not reduce or terminate assistance under the
State program funded under this part [or any other
State program funded with qualified State expenditures
(as defined in section 409(a)(7)(B)(i))] based on a
refusal of an individual to engage in work required in
accordance with this section if the individual is a
single custodial parent caring for a child who has not
attained 6 years of age, and the individual proves that
the individual has a demonstrated inability (as
determined by the State) to obtain needed child care,
for 1 or more of the following reasons:
(A) Unavailability of appropriate child care
within a reasonable distance from the
individual's home or work site.
(B) Unavailability or unsuitability of
informal child care by a relative or under
other arrangements.
(C) Unavailability of appropriate and
affordable formal child care arrangements.
(f) Nondisplacement in Work Activities.--
(1) In general.--Subject to paragraph (2), an adult
in a family receiving assistance under a State program
funded under this part attributable to funds provided
by the Federal Government may fill a vacant employment
position in order to engage in a work activity
described in subsection (d).
(2) No filling of certain vacancies.--No adult in a
work activity described in subsection (d) which is
funded, in whole or in part, by funds provided by the
Federal Government shall be employed or assigned--
(A) when any other individual is on layoff
from the same or any substantially equivalent
job; or
(B) if the employer has terminated the
employment of any regular employee or otherwise
caused an involuntary reduction of its
workforce in order to fill the vacancy so
created with an adult described in paragraph
(1).
(3) Grievance procedure.--A State with a program
funded under this part shall establish and maintain a
grievance procedure for resolving complaints of alleged
violations of paragraph (2).
(4) No preemption.--Nothing in this subsection shall
preempt or supersede any provision of State or local
law that provides greater protection for employees from
displacement.
(g) Sense of the Congress.--It is the sense of the Congress
that in complying with this section, each State that operates a
program funded under this part is encouraged to assign the
highest priority to requiring adults in 2-parent families and
adults in single-parent families that include older preschool
or school-age children to be engaged in work activities.
(h) Sense of the Congress That States Should Impose Certain
Requirements on Noncustodial, Nonsupporting Minor Parents.--It
is the sense of the Congress that the States should require
noncustodial, nonsupporting parents who have not attained 18
years of age to fulfill community work obligations and attend
appropriate parenting or money management classes after school.
(i) Verification of Work and Work-Eligible Individuals in
Order To Implement Reforms.--
(1) Secretarial direction and oversight.--
(A) Regulations for determining whether
activities may be counted as ``work
activities'', how to count and verify reported
hours of work, and determining who is a work-
eligible individual.--
(i) In general.--Not later than June
30, 2006, the Secretary shall
promulgate regulations to ensure
consistent measurement of work
participation rates under State
programs funded under this part and
State programs funded with qualified
State expenditures (as defined in
section 409(a)(7)(B)(i)), which shall
include information with respect to--
(I) determining whether an
activity of a recipient of
assistance may be treated as a
work activity under subsection
(d);
(II) uniform methods for
reporting hours of work by a
recipient of assistance;
(III) the type of
documentation needed to verify
reported hours of work by a
recipient of assistance; and
(IV) the circumstances under
which a parent who resides with
a child who is a recipient of
assistance should be included
in the work participation
rates.
(ii) Issuance of regulations on an
interim final basis.--The regulations
referred to in clause (i) may be
effective and final immediately on an
interim basis as of the date of
publication of the regulations. If the
Secretary provides for an interim final
regulation, the Secretary shall provide
for a period of public comment on the
regulation after the date of
publication. The Secretary may change
or revise the regulation after the
public comment period.
(B) Oversight of state procedures.--The
Secretary shall review the State procedures
established in accordance with paragraph (2) to
ensure that such procedures are consistent with
the regulations promulgated under subparagraph
(A) and are adequate to ensure an accurate
measurement of work participation under the
State programs funded under this part and any
other State programs funded with qualified
State expenditures (as so defined).
(2) Requirement for states to establish and maintain
work participation verification procedures.--Not later
than September 30, 2006, a State to which a grant is
made under section 403 shall establish procedures for
determining, with respect to recipients of assistance
under the State program funded under this part or under
any State programs funded with qualified State
expenditures (as so defined), whether activities may be
counted as work activities, how to count and verify
reported hours of work, and who is a work-eligible
individual, in accordance with the regulations
promulgated pursuant to paragraph (1)(A)(i) and shall
establish internal controls to ensure compliance with
the procedures.
SEC. 408. PROHIBITIONS; REQUIREMENTS.
(a) In General.--
(1) No assistance for families without a minor
child.--A State to which a grant is made under section
403 shall not use any part of the grant to provide
assistance to a family, unless the family includes a
minor child who resides with the family (consistent
with paragraph (10)) or a pregnant individual.
(2) Reduction or elimination of assistance for
noncooperation in establishing paternity or obtaining
child support.--If the agency responsible for
administering the State plan approved under part D
determines that an individual is not cooperating with
the State in establishing paternity or in establishing,
modifying, or enforcing a support order with respect to
a child of the individual, and the individual does not
qualify for any good cause or other exception
established by the State pursuant to section 454(29),
then the State--
(A) shall deduct from the assistance that
would otherwise be provided to the family of
the individual under the State program funded
under this part an amount equal to not less
than 25 percent of the amount of such
assistance; and
(B) may deny the family any assistance under
the State program.
(3) No assistance for families not assigning certain
support rights to the state.--A State to which a grant
is made under section 403 shall require, as a condition
of paying assistance to a family under the State
program funded under this part, that a member of the
family assign to the State any right the family member
may have (on behalf of the family member or of any
other person for whom the family member has applied for
or is receiving such assistance) to support from any
other person, not exceeding the total amount of
assistance so paid to the family, which accrues during
the period that the family receives assistance under
the program.
(4) No assistance for teenage parents who do not
attend high school or other equivalent training
program.--A State to which a grant is made under
section 403 shall not use any part of the grant to
provide assistance to an individual who has not
attained 18 years of age, is not married, has a minor
child at least 12 weeks of age in his or her care, and
has not successfully completed a high-school education
(or its equivalent), if the individual does not
participate in--
(A) educational activities directed toward
the attainment of a high school diploma or its
equivalent; or
(B) an alternative educational or training
program that has been approved by the State.
(5) No assistance for teenage parents not living in
adult-supervised settings.--
(A) In general.--
(i) Requirement.--Except as provided
in subparagraph (B), a State to which a
grant is made under section 403 shall
not use any part of the grant to
provide assistance to an individual
described in clause (ii) of this
subparagraph if the individual and the
minor child referred to in clause
(ii)(II) do not reside in a place of
residence maintained by a parent, legal
guardian, or other adult relative of
the individual as such parent's,
guardian's, or adult relative's own
home.
(ii) Individual described.--For
purposes of clause (i), an individual
described in this clause is an
individual who--
(I) has not attained 18 years
of age; and
(II) is not married, and has
a minor child in his or her
care.
(B) Exception.--
(i) Provision of, or assistance in
locating, adult-supervised living
arrangement.--In the case of an
individual who is described in clause
(ii), the State agency referred to in
section 402(a)(4) shall provide, or
assist the individual in locating, a
second chance home, maternity home, or
other appropriate adult-supervised
supportive living arrangement, taking
into consideration the needs and
concerns of the individual, unless the
State agency determines that the
individual's current living arrangement
is appropriate, and thereafter shall
require that the individual and the
minor child referred to in subparagraph
(A)(ii)(II) reside in such living
arrangement as a condition of the
continued receipt of assistance under
the State program funded under this
part attributable to funds provided by
the Federal Government (or in an
alternative appropriate arrangement,
should circumstances change and the
current arrangement cease to be
appropriate).
(ii) Individual described.--For
purposes of clause (i), an individual
is described in this clause if the
individual is described in subparagraph
(A)(ii), and--
(I) the individual has no
parent, legal guardian, or
other appropriate adult
relative described in subclause
(II) of his or her own who is
living or whose whereabouts are
known;
(II) no living parent, legal
guardian, or other appropriate
adult relative, who would
otherwise meet applicable State
criteria to act as the
individual's legal guardian, of
such individual allows the
individual to live in the home
of such parent, guardian, or
relative;
(III) the State agency
determines that--
(aa) the individual
or the minor child
referred to in
subparagraph
(A)(ii)(II) is being or
has been subjected to
serious physical or
emotional harm, sexual
abuse, or exploitation
in the residence of the
individual's own parent
or legal guardian; or
(bb) substantial
evidence exists of an
act or failure to act
that presents an
imminent or serious
harm if the individual
and the minor child
lived in the same
residence with the
individual's own parent
or legal guardian; or
(IV) the State agency
otherwise determines that it is
in the best interest of the
minor child to waive the
requirement of subparagraph (A)
with respect to the individual
or the minor child.
(iii) Second-chance home.--For
purposes of this subparagraph, the term
``second-chance home'' means an entity
that provides individuals described in
clause (ii) with a supportive and
supervised living arrangement in which
such individuals are required to learn
parenting skills, including child
development, family budgeting, health
and nutrition, and other skills to
promote their long-term economic
independence and the well-being of
their children.
(6) No medical services.--
(A) In general.--A State to which a grant is
made under section 403 shall not use any part
of the grant to provide medical services.
(B) Exception for prepregnancy family
planning services.--As used in subparagraph
(A), the term ``medical services'' does not
include prepregnancy family planning services.
(7) No assistance for more than 5 years.--
(A) In general.--A State to which a grant is
made under section 403 shall not use any part
of the grant to provide assistance to a family
that includes an adult who has received
assistance under any State program funded under
this part attributable to funds provided by the
Federal Government, for 60 months (whether or
not consecutive) after the date the State
program funded under this part commences,
subject to this paragraph.
(B) Minor child exception.--In determining
the number of months for which an individual
who is a parent or pregnant has received
assistance under the State program funded under
this part, the State shall disregard any month
for which such assistance was provided with
respect to the individual and during which the
individual was--
(i) a minor child; and
(ii) not the head of a household or
married to the head of a household.
(C) Hardship exception.--
(i) In general.--The State may exempt
a family from the application of
subparagraph (A) by reason of hardship
or if the family includes an individual
who has been battered or subjected to
extreme cruelty.
(ii) Limitation.--The average monthly
number of families with respect to
which an exemption made by a State
under clause (i) is in effect for a
fiscal year shall not exceed 20 percent
of the average monthly number of
families to which assistance is
provided under the State program funded
under this part during the fiscal year
or the immediately preceding fiscal
year (but not both), as the State may
elect.
(iii) Battered or subject to extreme
cruelty defined.--For purposes of
clause (i), an individual has been
battered or subjected to extreme
cruelty if the individual has been
subjected to--
(I) physical acts that
resulted in, or threatened to
result in, physical injury to
the individual;
(II) sexual abuse;
(III) sexual activity
involving a dependent child;
(IV) being forced as the
caretaker relative of a
dependent child to engage in
nonconsensual sexual acts or
activities;
(V) threats of, or attempts
at, physical or sexual abuse;
(VI) mental abuse; or
(VII) neglect or deprivation
of medical care.
(D) Disregard of months of assistance
received by adult while living in indian
country or an alaskan native village with 50
percent unemployment.--
(i) In general.--In determining the
number of months for which an adult has
received assistance under a State or
tribal program funded under this part,
the State or tribe shall disregard any
month during which the adult lived in
Indian country or an Alaskan Native
village if the most reliable data
available with respect to the month (or
a period including the month) indicate
that at least 50 percent of the adults
living in Indian country or in the
village were not employed.
(ii) Indian country defined.--As used
in clause (i), the term ``Indian
country'' has the meaning given such
term in section 1151 of title 18,
United States Code.
(E) Rule of interpretation.--Subparagraph (A)
shall not be interpreted to require any State
to provide assistance to any individual for any
period of time under the State program funded
under this part.
(F) Rule of interpretation.--This part shall
not be interpreted to prohibit any State from
expending State funds not originating with the
Federal Government on benefits for children or
families that have become ineligible for
assistance under the State program funded under
this part by reason of subparagraph (A).
[(G) Inapplicability to welfare-to-work
grants and assistance.--For purposes of
subparagraph (A) of this paragraph, a grant
made under section 403(a)(5) shall not be
considered a grant made under section 403, and
noncash assistance from funds provided under
section 403(a)(5) shall not be considered
assistance.]
(8) Denial of assistance for 10 years to a person
found to have fraudulently misrepresented residence in
order to obtain assistance in 2 or more states.--A
State to which a grant is made under section 403 shall
not use any part of the grant to provide cash
assistance to an individual during the 10-year period
that begins on the date the individual is convicted in
Federal or State court of having made a fraudulent
statement or representation with respect to the place
of residence of the individual in order to receive
assistance simultaneously from 2 or more States under
programs that are funded under this title, title XIX,
or the Food and Nutrition Act of 2008, or benefits in 2
or more States under the supplemental security income
program under title XVI. The preceding sentence shall
not apply with respect to a conviction of an
individual, for any month beginning after the President
of the United States grants a pardon with respect to
the conduct which was the subject of the conviction.
(9) Denial of assistance for fugitive felons and
probation and parole violators.--
(A) In general.--A State to which a grant is
made under section 403 shall not use any part
of the grant to provide assistance to any
individual who is--
(i) fleeing to avoid prosecution, or
custody or confinement after
conviction, under the laws of the place
from which the individual flees, for a
crime, or an attempt to commit a crime,
which is a felony under the laws of the
place from which the individual flees,
or which, in the case of the State of
New Jersey, is a high misdemeanor under
the laws of such State; or
(ii) violating a condition of
probation or parole imposed under
Federal or State law.
The preceding sentence shall not apply with
respect to conduct of an individual, for any
month beginning after the President of the
United States grants a pardon with respect to
the conduct.
(B) Exchange of information with law
enforcement agencies.--If a State to which a
grant is made under section 403 establishes
safeguards against the use or disclosure of
information about applicants or recipients of
assistance under the State program funded under
this part, the safeguards shall not prevent the
State agency administering the program from
furnishing a Federal, State, or local law
enforcement officer, upon the request of the
officer, with the current address of any
recipient if the officer furnishes the agency
with the name of the recipient and notifies the
agency that--
(i) the recipient--
(I) is described in
subparagraph (A); or
(II) has information that is
necessary for the officer to
conduct the official duties of
the officer; and
(ii) the location or apprehension of
the recipient is within such official
duties.
(10) Denial of assistance for minor children who are
absent from the home for a significant period.--
(A) In general.--A State to which a grant is
made under section 403 shall not use any part
of the grant to provide assistance for a minor
child who has been, or is expected by a parent
(or other caretaker relative) of the child to
be, absent from the home for a period of 45
consecutive days or, at the option of the
State, such period of not less than 30 and not
more than 180 consecutive days as the State may
provide for in the State plan submitted
pursuant to section 402.
(B) State authority to establish good cause
exceptions.--The State may establish such good
cause exceptions to subparagraph (A) as the
State considers appropriate if such exceptions
are provided for in the State plan submitted
pursuant to section 402.
(C) Denial of assistance for relative who
fails to notify state agency of absence of
child.--A State to which a grant is made under
section 403 shall not use any part of the grant
to provide assistance for an individual who is
a parent (or other caretaker relative) of a
minor child and who fails to notify the agency
administering the State program funded under
this part of the absence of the minor child
from the home for the period specified in or
provided for pursuant to subparagraph (A), by
the end of the 5-day period that begins with
the date that it becomes clear to the parent
(or relative) that the minor child will be
absent for such period so specified or provided
for.
(11) Medical assistance required to be provided for
certain families having earnings from employment or
child support.--
(A) Earnings from employment.--A State to
which a grant is made under section 403 and
which has a State plan approved under title XIX
shall provide that in the case of a family that
is treated (under section 1931(b)(1)(A) for
purposes of title XIX) as receiving aid under a
State plan approved under this part (as in
effect on July 16, 1996), that would become
ineligible for such aid because of hours of or
income from employment of the caretaker
relative (as defined under this part as in
effect on such date) or because of section
402(a)(8)(B)(ii)(II) (as so in effect), and
that was so treated as receiving such aid in at
least 3 of the 6 months immediately preceding
the month in which such ineligibility begins,
the family shall remain eligible for medical
assistance under the State's plan approved
under title XIX for an extended period or
periods as provided in section 1925 or
1902(e)(1) (as applicable), and that the family
will be appropriately notified of such
extension as required by section 1925(a)(2).
(B) Child support.--A State to which a grant
is made under section 403 and which has a State
plan approved under title XIX shall provide
that in the case of a family that is treated
(under section 1931(b)(1)(A) for purposes of
title XIX) as receiving aid under a State plan
approved under this part (as in effect on July
16, 1996), that would become ineligible for
such aid as a result (wholly or partly) of the
collection of child or spousal support under
part D and that was so treated as receiving
such aid in at least 3 of the 6 months
immediately preceding the month in which such
ineligibility begins, the family shall remain
eligible for medical assistance under the
State's plan approved under title XIX for an
extended period or periods as provided in
section 1931(c)(1).
(12) State requirement to prevent unauthorized
spending of benefits.--
(A) In general.--A State to which a grant is
made under section 403 shall maintain policies
and practices as necessary to prevent
assistance provided under the State program
funded under this part from being used in any
electronic benefit transfer transaction in--
(i) any liquor store;
(ii) any casino, gambling casino, or
gaming establishment; [or]
(iii) any retail establishment which
provides adult-oriented entertainment
in which performers disrobe or perform
in an unclothed state for
entertainment[.]; or
(iv) any establishment that offers
marihuana (as defined in section
102(16) of the Controlled Substances
Act) for sale.
(B) Definitions.--For purposes of
subparagraph (A)--
(i) Liquor store.--The term ``liquor
store'' means any retail establishment
which sells exclusively or primarily
intoxicating liquor. Such term does not
include a grocery store which sells
both intoxicating liquor and groceries
including staple foods (within the
meaning of section 3(r) of the Food and
Nutrition Act of 2008 (7 U.S.C.
2012(r))).
(ii) Casino, gambling casino, or
gaming establishment.--The terms
``casino'', ``gambling casino'', and
``gaming establishment'' do not
include--
(I) a grocery store which
sells groceries including such
staple foods and which also
offers, or is located within
the same building or complex
as, casino, gambling, or gaming
activities; or
(II) any other establishment
that offers casino, gambling,
or gaming activities incidental
to the principal purpose of the
business.
(iii) Electronic benefit transfer
transaction.--The term ``electronic
benefit transfer transaction'' means
the use of a credit or debit card
service, automated teller machine,
point-of-sale terminal, or access to an
online system for the withdrawal of
funds or the processing of a payment
for merchandise or a service.
(13) Requirement that states reserve 25 percent of
jobs grant for spending on core activities.--A State to
which a grant is made under section 403(a)(1) for a
fiscal year shall expend not less than 25 percent of
the grant on assistance, case management, work supports
and supportive services, work, wage subsidies, work
activities (as defined in section 407(d)), and non-
recurring short-term benefits.
(14) Requirement that at least 25 percent of
qualified state expenditures be for core activities.--
Not less than 25 percent of the qualified State
expenditures (as defined in section 409(a)(7)(B)(i)) of
a State during the fiscal year shall be for assistance,
case management, work supports and supportive services,
work, wage subsidies, work activities (as defined in
section 407(d)), and non-recurring short-term benefits.
(15) Phase-out of counting of third-party
contributions as qualified state expenditures.--
(A) In general.--The qualified State
expenditures (as defined in section
409(a)(7)(B)(i)) of a State for a fiscal year
that are attributable to the value of goods and
services provided by a source other than a
State or local government shall not exceed the
applicable percentage of the expenditures for
the fiscal year.
(B) Applicable percentage.--In subparagraph
(A), the term ``applicable percentage'' means,
with respect to a fiscal year--
(i) 75 percent, in the case of fiscal
year 2020;
(ii) 50 percent, in the case of
fiscal year 2021;
(iii) 25 percent, in the case of
fiscal year 2022; and
(iv) 0 percent, in the case of fiscal
year 2023 or any succeeding fiscal
year.
(16) Non-supplantation requirement.--Funds made
available to a State under this part shall be used to
supplement, not supplant, State general revenue
spending on activities described in section 404.
[(b) Individual Responsibility Plans.--
[(1) Assessment.--The State agency responsible for
administering the State program funded under this part
shall make an initial assessment of the skills, prior
work experience, and employability of each recipient of
assistance under the program who--
[(A) has attained 18 years of age; or
[(B) has not completed high school or
obtained a certificate of high school
equivalency, and is not attending secondary
school.
[(2) Contents of plans.--
[(A) In general.--On the basis of the
assessment made under subsection (a) with
respect to an individual, the State agency, in
consultation with the individual, may develop
an individual responsibility plan for the
individual, which--
[(i) sets forth an employment goal
for the individual and a plan for
moving the individual immediately into
private sector employment;
[(ii) sets forth the obligations of
the individual, which may include a
requirement that the individual attend
school, maintain certain grades and
attendance, keep school age children of
the individual in school, immunize
children, attend parenting and money
management classes, or do other things
that will help the individual become
and remain employed in the private
sector;
[(iii) to the greatest extent
possible is designed to move the
individual into whatever private sector
employment the individual is capable of
handling as quickly as possible, and to
increase the responsibility and amount
of work the individual is to handle
over time;
[(iv) describes the services the
State will provide the individual so
that the individual will be able to
obtain and keep employment in the
private sector, and describe the job
counseling and other services that will
be provided by the State; and
[(v) may require the individual to
undergo appropriate substance abuse
treatment.
[(B) Timing.--The State agency may comply
with paragraph (1) with respect to an
individual--
[(i) within 90 days (or, at the
option of the State, 180 days) after
the effective date of this part, in the
case of an individual who, as of such
effective date, is a recipient of aid
under the State plan approved under
part A (as in effect immediately before
such effective date); or
[(ii) within 30 days (or, at the
option of the State, 90 days) after the
individual is determined to be eligible
for such assistance, in the case of any
other individual.
[(3) Penalty for noncompliance by individual.--In
addition to any other penalties required under the
State program funded under this part, the State may
reduce, by such amount as the State considers
appropriate, the amount of assistance otherwise payable
under the State program to a family that includes an
individual who fails without good cause to comply with
an individual responsibility plan signed by the
individual.
[(4) State discretion.--The exercise of the authority
of this subsection shall be within the sole discretion
of the State.]
(b) Individual Opportunity Plans.--
(1) Assessment.--The State agency responsible for
administering the State program funded under this part
shall make an initial assessment of the following for
each work-eligible individual (as defined in the
regulations promulgated pursuant to section
407(i)(1)(A)(i)):
(A) The education obtained, skills, prior
work experience, work readiness, and barriers
to work of the individual.
(B) The well-being of the children in the
family of the individual and, where
appropriate, activities or services (such as
services offered by a program funded under
section 511) to improve the well-being of the
children.
(2) Contents of plans.--On the basis of the
assessment required by paragraph (1) of this
subsection, the State agency, in consultation with the
individual, shall develop an individual opportunity
plan that--
(A) includes a personal responsibility
agreement in which the individual acknowledges
receipt of publicly-funded benefits and
responsibility to comply with program
requirements in order to receive the benefits;
(B) sets forth the obligations of the
individual to participate in work activities
(as defined in section 407(d)), and the number
of hours per month for which the individual
will so participate pursuant to section 407;
(C) sets forth an employment goal and planned
short-, intermediate-, and long-term actions to
achieve the goal, and, in the case of an
individual who has not attained 24 years of age
and is in secondary school or the equivalent,
the intermediate action may be completion of
secondary school or the equivalent;
(D) describes the job counseling and other
services the State will provide to the
individual to enable the individual to obtain
and keep employment in the private sector;
(E) may include referral to appropriate
substance abuse or mental health treatment; and
(F) is signed by the individual.
(3) Timing.--The State agency shall comply with
paragraph (1) and (2) with respect to a work-eligible
individual--
(A) within 180 days after the effective date
of this subsection, in the case of an
individual who, as of such effective date, is a
recipient of assistance under the State program
funded under this part (as in effect
immediately before such effective date); or
(B) within 60 days after the individual is
determined to be eligible for the assistance,
in the case of any other individual.
(4) Penalty for noncompliance by individual.--In
addition to any other penalties required under the
State program funded under this part, the State may
reduce, by such amount as the State considers
appropriate, the amount of assistance otherwise payable
under the State program to a family that includes an
individual who fails without good cause to comply with
an individual opportunity plan developed pursuant to
this subsection, that is signed by the individual.
(5) Periodic review.--The State shall meet with each
work-eligible individual assessed by the State under
paragraph (1), not less frequently than every 90 days,
to--
(A) review the individual opportunity plan
developed for the individual;
(B) discuss with the individual the progress
made by the individual in achieving the goals
specified in the plan; and
(C) update the plan, as necessary, to reflect
any changes in the circumstances of the
individual since the plan was last reviewed.
(c) Sanctions Against Recipients Not Considered Wage
Reductions.--A penalty imposed by a State against the family of
an individual by reason of the failure of the individual to
comply with a requirement under the State program funded under
this part shall not be construed to be a reduction in any wage
paid to the individual.
(d) Nondiscrimination Provisions.--The following provisions
of law shall apply to any program or activity which receives
funds provided under this part:
(1) The Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.).
(2) Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794).
(3) The Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.).
(4) Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.).
(e) Special Rules Relating to Treatment of Certain Aliens.--
For special rules relating to the treatment of certain aliens,
see title IV of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
(f) Special Rules Relating to the Treatment of Non-213A
Aliens.--The following rules shall apply if a State elects to
take the income or resources of any sponsor of a non-213A alien
into account in determining whether the alien is eligible for
assistance under the State program funded under this part, or
in determining the amount or types of such assistance to be
provided to the alien:
(1) Deeming of sponsor's income and resources.--For a
period of 3 years after a non-213A alien enters the
United States:
(A) Income deeming rule.--The income of any
sponsor of the alien and of any spouse of the
sponsor is deemed to be income of the alien, to
the extent that the total amount of the income
exceeds the sum of--
(i) the lesser of--
(I) 20 percent of the total
of any amounts received by the
sponsor or any such spouse in
the month as wages or salary or
as net earnings from self-
employment, plus the full
amount of any costs incurred by
the sponsor and any such spouse
in producing self-employment
income in such month; or
(II) $175;
(ii) the cash needs standard
established by the State for purposes
of determining eligibility for
assistance under the State program
funded under this part for a family of
the same size and composition as the
sponsor and any other individuals
living in the same household as the
sponsor who are claimed by the sponsor
as dependents for purposes of
determining the sponsor's Federal
personal income tax liability but whose
needs are not taken into account in
determining whether the sponsor's
family has met the cash needs standard;
(iii) any amounts paid by the sponsor
or any such spouse to individuals not
living in the household who are claimed
by the sponsor as dependents for
purposes of determining the sponsor's
Federal personal income tax liability;
and
(iv) any payments of alimony or child
support with respect to individuals not
living in the household.
(B) Resource deeming rule.--The resources of
a sponsor of the alien and of any spouse of the
sponsor are deemed to be resources of the alien
to the extent that the aggregate value of the
resources exceeds $1,500.
(C) Sponsors of multiple non-213a aliens.--If
a person is a sponsor of 2 or more non-213A
aliens who are living in the same home, the
income and resources of the sponsor and any
spouse of the sponsor that would be deemed
income and resources of any such alien under
subparagraph (A) shall be divided into a number
of equal shares equal to the number of such
aliens, and the State shall deem the income and
resources of each such alien to include 1 such
share.
(2) Ineligibility of non-213a aliens sponsored by
agencies; exception.--A non-213A alien whose sponsor is
or was a public or private agency shall be ineligible
for assistance under a State program funded under this
part, during a period of 3 years after the alien enters
the United States, unless the State agency
administering the program determines that the sponsor
either no longer exists or has become unable to meet
the alien's needs.
(3) Information provisions.--
(A) Duties of non-213a aliens.--A non-213A
alien, as a condition of eligibility for
assistance under a State program funded under
this part during the period of 3 years after
the alien enters the United States, shall be
required to provide to the State agency
administering the program--
(i) such information and
documentation with respect to the
alien's sponsor as may be necessary in
order for the State agency to make any
determination required under this
subsection, and to obtain any
cooperation from the sponsor necessary
for any such determination; and
(ii) such information and
documentation as the State agency may
request and which the alien or the
alien's sponsor provided in support of
the alien's immigration application.
(B) Duties of federal agencies.--The
Secretary shall enter into agreements with the
Secretary of State and the Attorney General
under which any information available to them
and required in order to make any determination
under this subsection will be provided by them
to the Secretary (who may, in turn, make the
information available, upon request, to a
concerned State agency).
(4) Non-213a alien defined.--An alien is a non-213A
alien for purposes of this subsection if the affidavit
of support or similar agreement with respect to the
alien that was executed by the sponsor of the alien's
entry into the United States was executed other than
pursuant to section 213A of the Immigration and
Nationality Act.
(5) Inapplicability to alien minor sponsored by a
parent.--This subsection shall not apply to an alien
who is a minor child if the sponsor of the alien or any
spouse of the sponsor is a parent of the alien.
(6) Inapplicability to certain categories of
aliens.--This subsection shall not apply to an alien
who is--
(A) admitted to the United States as a
refugee under section 207 of the Immigration
and Nationality Act;
(B) paroled into the United States under
section 212(d)(5) of such Act for a period of
at least 1 year; or
(C) granted political asylum by the Attorney
General under section 208 of such Act.
(g) State Required To Provide Certain Information.--Each
State to which a grant is made under section 403 shall, at
least 4 times annually and upon request of the Immigration and
Naturalization Service, furnish the Immigration and
Naturalization Service with the name and address of, and other
identifying information on, any individual who the State knows
is not lawfully present in the United States.
SEC. 409. PENALTIES.
(a) In General.--Subject to this section:
(1) Use of grant in violation of this part.--
(A) General penalty.--If an audit conducted
under chapter 75 of title 31, United States
Code, finds that an amount paid to a State
under section 403 for a fiscal year has been
used in violation of this part, the Secretary
shall reduce the grant payable to the State
under section 403(a)(1) for the immediately
succeeding fiscal year quarter by the amount so
used.
(B) Enhanced penalty for intentional
violations.--If the State does not prove to the
satisfaction of the Secretary that the State
did not intend to use the amount in violation
of this part, the Secretary shall further
reduce the grant payable to the State under
section 403(a)(1) for the immediately
succeeding fiscal year quarter by an amount
equal to 5 percent of the State family
assistance grant.
[(C) Penalty for misuse of competitive
welfare-to-work funds.--If the Secretary of
Labor finds that an amount paid to an entity
under section 403(a)(5)(B) has been used in
violation of subparagraph (B) or (C) of section
403(a)(5), the entity shall remit to the
Secretary of Labor an amount equal to the
amount so used.]
(2) Failure to submit required quarterly report.--
[(A) Quarterly reports.--]
[(i)] (A) In general.--If the Secretary
determines that a State has not, within 45 days
after the end of a fiscal quarter, submitted
the report required by section 411(a) for the
quarter, the Secretary shall reduce the grant
payable to the State under section 403(a)(1)
for the immediately succeeding fiscal year by
an amount equal to 4 percent of the State
family assistance grant.
[(ii)] (B) Rescission of penalty.--The
Secretary shall rescind a penalty imposed on a
State under [clause (i)] subparagraph (A) with
respect to a report if the State submits the
report before the end of the fiscal quarter
that immediately succeeds the fiscal quarter
for which the report was required.
[(B) Report on engagement in additional work
activities and expenditures for other benefits
and services.--
[(i) In general.--If the Secretary
determines that a State has not
submitted the report required by
section 411(c)(1)(A)(i) by May 31,
2011, or the report required by section
411(c)(1)(A)(ii) by August 31, 2011,
the Secretary shall reduce the grant
payable to the State under section
403(a)(1) for the immediately
succeeding fiscal year by an amount
equal to not more than 4 percent of the
State family assistance grant.
[(ii) Rescission of penalty.--The
Secretary shall rescind a penalty
imposed on a State under clause (i)
with respect to a report required by
section 411(c)(1)(A) if the State
submits the report not later than--
[(I) in the case of the
report required under section
411(c)(1)(A)(i), June 15, 2011;
and
[(II) in the case of the
report required under section
411(c)(1)(A)(ii), September 15,
2011.
[(iii) Penalty based on severity of
failure.--The Secretary shall impose a
reduction under clause (i) with respect
to a fiscal year based on the degree of
noncompliance.]
(3) Failure to satisfy minimum participation rates.--
(A) In general.--If the Secretary determines
that a State to which a grant is made under
section 403 for a fiscal year has failed to
comply with section 407(a) for the fiscal year,
the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount
equal to the applicable percentage of the State
family assistance grant.
(B) Applicable percentage defined.--As used
in subparagraph (A), the term ``applicable
percentage'' means, with respect to a State--
(i) if a penalty was not imposed on
the State under subparagraph (A) for
the immediately preceding fiscal year,
5 percent; or
(ii) if a penalty was imposed on the
State under subparagraph (A) for the
immediately preceding fiscal year, the
lesser of--
(I) the percentage by which
the grant payable to the State
under section 403(a)(1) was
reduced for such preceding
fiscal year, increased by 2
percentage points; or
(II) 21 percent.
(C) Penalty based on severity of failure.--
The Secretary shall impose reductions under
subparagraph (A) with respect to a fiscal year
based on the degree of noncompliance, and may
reduce the penalty if the noncompliance is due
to circumstances that caused the State to
become a needy State [(as defined in section
403(b)(5))] during the fiscal year or if the
noncompliance is due to extraordinary
circumstances such as a natural disaster or
regional recession. The Secretary shall provide
a written report to Congress to justify any
waiver or penalty reduction due to such
extraordinary circumstances.
[(5)] (D) Needy state.--For purposes of
[paragraph (4)] subparagraph (C), a State is a
needy State for a month if--
[(A)] (i) the average rate of--
[(i)] (I) total unemployment
in such State (seasonally
adjusted) for the period
consisting of the most recent 3
months for which data for all
States are published equals or
exceeds 6.5 percent; and
[(ii)] (II) total
unemployment in such State
(seasonally adjusted) for the
3-month period equals or
exceeds 110 percent of such
average rate for either (or
both) of the corresponding 3-
month periods ending in the 2
preceding calendar years; or
[(B)] (ii) as determined by the
Secretary of Agriculture (in the
discretion of the Secretary of
Agriculture), the monthly average
number of individuals (as of the last
day of each month) participating in the
supplemental nutrition assistance
program in the State in the then most
recently concluded 3-month period for
which data are available exceeds by not
less than 10 percent the lesser of--
[(i)] (I) the monthly average
number of individuals (as of
the last day of each month) in
the State that would have
participated in the
supplemental nutrition
assistance program in the
corresponding 3-month period in
fiscal year 1994 if the
amendments made by titles IV
and VIII of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 had been in effect
throughout fiscal year 1994; or
[(ii)] (II) the monthly
average number of individuals
(as of the last day of each
month) in the State that would
have participated in the
supplemental nutrition
assistance program in the
corresponding 3-month period in
fiscal year 1995 if the
amendments made by titles IV
and VIII of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 had been in effect
throughout fiscal year 1995.
(4) Failure to participate in the income and
eligibility verification system.--If the Secretary
determines that a State program funded under this part
is not participating during a fiscal year in the income
and eligibility verification system required by section
1137, the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to not more
than 2 percent of the State family assistance grant.
(5) Failure to comply with paternity establishment
and child support enforcement requirements under part
d.--Notwithstanding any other provision of this Act, if
the Secretary determines that the State agency that
administers a program funded under this part does not
enforce the penalties requested by the agency
administering part D against recipients of assistance
under the State program who fail to cooperate in
establishing paternity or in establishing, modifying,
or enforcing a child support order in accordance with
such part and who do not qualify for any good cause or
other exception established by the State under section
454(29), the Secretary shall reduce the grant payable
to the State under section 403(a)(1) for the
immediately succeeding fiscal year (without regard to
this section) by not more than 5 percent.
[(6) Failure to timely repay a federal loan fund for
state welfare programs.--If the Secretary determines
that a State has failed to repay any amount borrowed
from the Federal Loan Fund for State Welfare Programs
established under section 406 within the period of
maturity applicable to the loan, plus any interest owed
on the loan, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year quarter (without
regard to this section) by the outstanding loan amount,
plus the interest owed on the outstanding amount. The
Secretary shall not forgive any outstanding loan amount
or interest owed on the outstanding amount.
[(7)] (6) Failure of any state to maintain certain
level of historic effort.--
(A) In general.--The Secretary shall reduce
the grant payable to the State under section
403(a)(1) for a fiscal year by the amount (if
any) by which qualified State expenditures for
the then immediately preceding fiscal year are
less than the applicable percentage of historic
State expenditures with respect to such
preceding fiscal year.
(B) Definitions.--As used in this paragraph:
(i) Qualified state expenditures.--
(I) In general.--The term
``qualified State
expenditures'' means, with
respect to a State and a fiscal
year, the total expenditures by
the State during the fiscal
year, under [all State
programs] the State program
funded under this part, for any
of the following with respect
to eligible families:
(aa) Cash assistance,
including any amount
collected by the State
as support pursuant to
a plan approved under
part D, on behalf of a
family receiving
assistance under the
State program funded
under this part, that
is distributed to the
family under section
457(a)(1)(B) and
disregarded in
determining the
eligibility of the
family for, and the
amount of, such
assistance.
(bb) Child care
assistance.
(cc) Educational
activities designed to
increase self-
sufficiency, job
training, and work,
excluding any
expenditure for public
education in the State
except expenditures
which involve the
provision of services
or assistance to a
member of an eligible
family which is not
generally available to
persons who are not
members of an eligible
family.
(dd) Expenditures for
a purpose described in
paragraph (3) or (4) of
section 401(a).
[(dd)] (ee)
Administrative costs in
connection with the
matters described in
items (aa), (bb), (cc),
[and (ee)] (dd), and
(ff), but only to the
extent that such costs
do not exceed 15
percent of the total
amount of qualified
State expenditures for
the fiscal year.
[(ee)] (ff) Any other
use of funds allowable
under section
404(a)(1).
(II) Exclusion of transfers
from other state and local
programs.--Such term does not
include expenditures under any
State or local program during a
fiscal year, except to the
extent that--
(aa) the expenditures
exceed the amount
expended under the
State or local program
in the fiscal year most
recently ending before
the date of the
enactment of this
section (as in effect
just before the
effective date of the
Jobs and Opportunity
with Benefits and
Services for Success
Act); or
(bb) the State is
entitled to a payment
under former section
403 (as in effect
immediately before such
date of enactment) with
respect to the
expenditures.
(III) Exclusion of amounts
expended to replace penalty
grant reductions.--Such term
does not include any amount
expended in order to comply
with paragraph [(12)] (10).
(IV) Eligible families.--As
used in subclause (I), the term
``eligible families'' means
families eligible for
assistance under the State
program funded under this part,
families that would be eligible
for such assistance but for the
application of section
408(a)(7) of this Act, and
families of aliens lawfully
present in the United States
that would be eligible for such
assistance but for the
application of title IV of the
Personal Responsibility and
Work Opportunity Reconciliation
Act of 1996, except any of such
families whose monthly income
exceeds twice the poverty line
(as defined by the Office of
Management and Budget, and
revised annually in accordance
with section 673(2) of the
Omnibus Budget Reconciliation
Act of 1981 (42 U.S.C.
9902(2))).
[(V) Counting of spending on
certain pro-family
activities.--The term
``qualified State
expenditures'' includes the
total expenditures by the State
during the fiscal year under
all State programs for a
purpose described in paragraph
(3) or (4) of section 401(a).]
(ii) Applicable percentage.--The term
``applicable percentage'' means 80
percent (or, if the State meets the
requirements of section 407(a), 75
percent).
(iii) Historic state expenditures.--
The term ``historic State
expenditures'' means, with respect to a
State, the lesser of--
(I) the expenditures by the
State under parts A and F (as
in effect during fiscal year
1994) for fiscal year 1994; or
(II) the amount which bears
the same ratio to the amount
described in subclause (I) as--
(aa) the State family
assistance grant, plus
the total amount
required to be paid to
the State under former
section 403 for fiscal
year 1994 with respect
to amounts expended by
the State for child
care under subsection
(g) or (i) of section
402 (as in effect
during fiscal year
1994); bears to
(bb) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994.
Such term does not include any
expenditures under the State plan
approved under part A (as so in effect)
on behalf of individuals covered by a
tribal family assistance plan approved
under section 412, as determined by the
Secretary.
(iv) Expenditures by the state.--The
term ``expenditures by the State'' does
not include--
(I) any expenditure from
amounts made available by the
Federal Government;
(II) any State funds expended
for the medicaid program under
title XIX; or
[(III) any State funds which
are used to match Federal funds
provided under section
403(a)(5); or
[(IV)] (III) any State funds
which are expended as a
condition of receiving Federal
funds other than under this
part.
Notwithstanding subclause (IV) of the
preceding sentence, such term includes
expenditures by a State for child care
in a fiscal year to the extent that the
total amount of the expenditures does
not exceed the amount of State
expenditures in fiscal year 1994 or
1995 (whichever is the greater) that
equal the non-Federal share for the
programs described in section
418(a)(1)(A).
(v) Source of data.--In determining
expenditures by a State for fiscal
years 1994 and 1995, the Secretary
shall use information which was
reported by the State on ACF Form 231
or (in the case of expenditures under
part F) ACF Form 331, available as of
the dates specified in clauses (ii) and
(iii) of section 403(a)(1)(D).
[(8)] (7) Noncompliance of state child support
enforcement program with requirements of part d.--
(A) In general.--If the Secretary finds, with
respect to a State's program under part D, in a
fiscal year beginning on or after October 1,
1997--
(i)(I) on the basis of data submitted
by a State pursuant to section
454(15)(B), or on the basis of the
results of a review conducted under
section 452(a)(4), that the State
program failed to achieve the paternity
establishment percentages (as defined
in section 452(g)(2)), or to meet other
performance measures that may be
established by the Secretary;
(II) on the basis of the results of
an audit or audits conducted under
section 452(a)(4)(C)(i) that the State
data submitted pursuant to section
454(15)(B) is incomplete or unreliable;
or
(III) on the basis of the results of
an audit or audits conducted under
section 452(a)(4)(C) that a State
failed to substantially comply with 1
or more of the requirements of part D
(other than paragraph (24), or
subparagraph (A) or (B)(i) of paragraph
(27), of section 454); and
(ii) that, with respect to the
succeeding fiscal year--
(I) the State failed to take
sufficient corrective action to
achieve the appropriate
performance levels or
compliance as described in
subparagraph (A)(i); or
(II) the data submitted by
the State pursuant to section
454(15)(B) is incomplete or
unreliable;
the amounts otherwise payable to the State
under this part for quarters following the end
of such succeeding fiscal year, prior to
quarters following the end of the first quarter
throughout which the State program has achieved
the paternity establishment percentages or
other performance measures as described in
subparagraph (A)(i)(I), or is in substantial
compliance with 1 or more of the requirements
of part D as described in subparagraph
(A)(i)(III), as appropriate, shall be reduced
by the percentage specified in subparagraph
(B).
(B) Amount of reductions.--The reductions
required under subparagraph (A) shall be--
(i) not less than 1 nor more than 2
percent;
(ii) not less than 2 nor more than 3
percent, if the finding is the 2nd
consecutive finding made pursuant to
subparagraph (A); or
(iii) not less than 3 nor more than 5
percent, if the finding is the 3rd or a
subsequent consecutive such finding.
(C) Disregard of noncompliance which is of a
technical nature.--For purposes of this section
and section 452(a)(4), a State determined as a
result of an audit--
(i) to have failed to have
substantially complied with 1 or more
of the requirements of part D shall be
determined to have achieved substantial
compliance only if the Secretary
determines that the extent of the
noncompliance is of a technical nature
which does not adversely affect the
performance of the State's program
under part D; or
(ii) to have submitted incomplete or
unreliable data pursuant to section
454(15)(B) shall be determined to have
submitted adequate data only if the
Secretary determines that the extent of
the incompleteness or unreliability of
the data is of a technical nature which
does not adversely affect the
determination of the level of the
State's paternity establishment
percentages (as defined under section
452(g)(2)) or other performance
measures that may be established by the
Secretary.
[(9)] (8) Failure to comply with 5-year limit on
assistance.--If the Secretary determines that a State
has not complied with section 408(a)(7) during a fiscal
year, the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to 5 percent
of the State family assistance grant.
[(10) Failure of state receiving amounts from
contingency fund to maintain 100 percent of historic
effort.--If, at the end of any fiscal year during which
amounts from the Contingency Fund for State Welfare
Programs have been paid to a State, the Secretary finds
that the qualified State expenditures (as defined in
paragraph (7)(B)(i) (other than the expenditures
described in subclause (I)(bb) of that paragraph))
under the State program funded under this part for the
fiscal year are less than 100 percent of historic State
expenditures (as defined in paragraph (7)(B)(iii) of
this subsection), excluding any amount expended by the
State for child care under subsection (g) or (i) of
section 402 (as in effect during fiscal year 1994) for
fiscal year 1994, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by the total of the
amounts so paid to the State that the State has not
remitted under section 403(b)(6).
[(11)] (9) Failure to maintain assistance to adult
single custodial parent who cannot obtain child care
for child under age 6.--
(A) In general.--If the Secretary determines
that a State to which a grant is made under
section 403 for a fiscal year has violated
section 407(e)(2) during the fiscal year, the
Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount
equal to not more than 5 percent of the State
family assistance grant.
(B) Penalty based on severity of failure.--
The Secretary shall impose reductions under
subparagraph (A) with respect to a fiscal year
based on the degree of noncompliance.
[(12)] (10) Requirement to expend additional state
funds to replace grant reductions; penalty for failure
to do so.--If the grant payable to a State under
section 403(a)(1) for a fiscal year is reduced by
reason of this subsection, the State shall, during the
immediately succeeding fiscal year, expend under the
State program funded under this part an amount equal to
the total amount of such reductions. If the State fails
during such succeeding fiscal year to make the
expenditure required by the preceding sentence from its
own funds, the Secretary may reduce the grant payable
to the State under section 403(a)(1) for the fiscal
year that follows such succeeding fiscal year by an
amount equal to the sum of--
(A) not more than 2 percent of the State
family assistance grant; and
(B) the amount of the expenditure required by
the preceding sentence.
[(13) Penalty for failure of state to maintain
historic effort during year in which welfare-to-work
grant is received.--If a grant is made to a State under
section 403(a)(5)(A) for a fiscal year and paragraph
(7) of this subsection requires the grant payable to
the State under section 403(a)(1) to be reduced for the
immediately succeeding fiscal year, then the Secretary
shall reduce the grant payable to the State under
section 403(a)(1) for such succeeding fiscal year by
the amount of the grant made to the State under section
403(a)(5)(A) for the fiscal year.
[(14)] (11) Penalty for failure to reduce assistance
for recipients refusing without good cause to work.--
(A) In general.--If the Secretary determines
that a State to which a grant is made under
section 403 in a fiscal year has violated
section 407(e) during the fiscal year, the
Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount
equal to not less than 1 percent and not more
than 5 percent of the State family assistance
grant.
(B) Penalty based on severity of failure.--
The Secretary shall impose reductions under
subparagraph (A) with respect to a fiscal year
based on the degree of noncompliance.
[(15)] (12) Penalty for failure to establish or
comply with work participation verification
procedures.--
(A) In general.--If the Secretary determines
that a State to which a grant is made under
section 403 in a fiscal year has violated
section 407(i)(2) during the fiscal year, the
Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount
equal to not less than 1 percent and not more
than 5 percent of the State family assistance
grant.
(B) Penalty based on severity of failure.--
The Secretary shall impose reductions under
subparagraph (A) with respect to a fiscal year
based on the degree of noncompliance.
[(16)] (13) Penalty for failure to enforce spending
policies.--
(A) In general.--If, within 2 years after the
date of the enactment of this paragraph, any
State has not reported to the Secretary on such
State's implementation of the policies and
practices required by section 408(a)(12), or
the Secretary determines, based on the
information provided in State reports, that any
State has not implemented and maintained such
policies and practices, the Secretary shall
reduce, by an amount equal to 5 percent of the
State family assistance grant, the grant
payable to such State under section 403(a)(1)
for--
(i) the fiscal year immediately
succeeding the year in which such 2-
year period ends; and
(ii) each succeeding fiscal year in
which the State does not demonstrate
that such State has implemented and
maintained such policies and practices.
(B) Reduction of applicable penalty.--The
Secretary may reduce the amount of the
reduction required under subparagraph (A) based
on the degree of noncompliance of the State.
(C) State not responsible for individual
violations.--Fraudulent activity by any
individual in an attempt to circumvent the
policies and practices required by section
408(a)(12) shall not trigger a State penalty
under subparagraph (A).
(b) Reasonable Cause Exception.--
(1) In general.--The Secretary may not impose a
penalty on a State under subsection (a) with respect to
a requirement if the Secretary determines that the
State has reasonable cause for failing to comply with
the requirement.
(2) Exception.--Paragraph (1) of this subsection
shall not apply to any penalty under paragraph (6),
(7), [(8), (10), (12), or (13)] or (10) of subsection
(a) [and, with respect to the penalty under paragraph
(2)(B) of subsection (a), shall only apply to the
extent the Secretary determines that the reasonable
cause for failure to comply with a requirement of that
paragraph is as a result of a one-time, unexpected
event, such as a widespread data system failure or a
natural or man-made disaster.].
(c) Corrective Compliance Plan.--
(1) In general.--
(A) Notification of violation.--Before
imposing a penalty against a State under
subsection (a) with respect to a violation of
this part, the Secretary shall notify the State
of the violation and allow the State the
opportunity to enter into a corrective
compliance plan in accordance with this
subsection which outlines how the State will
correct or discontinue, as appropriate, the
violation and how the State will insure
continuing compliance with this part.
(B) 60-day period to propose a corrective
compliance plan.--During the 60-day period that
begins on the date the State receives a notice
provided under subparagraph (A) with respect to
a violation, the State may submit to the
Federal Government a corrective compliance plan
to correct or discontinue, as appropriate, the
violation.
(C) Consultation about modifications.--During
the 60-day period that begins with the date the
Secretary receives a corrective compliance plan
submitted by a State in accordance with
subparagraph (B), the Secretary may consult
with the State on modifications to the plan.
(D) Acceptance of plan.--A corrective
compliance plan submitted by a State in
accordance with subparagraph (B) is deemed to
be accepted by the Secretary if the Secretary
does not accept or reject the plan during 60-
day period that begins on the date the plan is
submitted.
(2) Effect of correcting or discontinuing
violation.--The Secretary may not impose any penalty
under subsection (a) with respect to any violation
covered by a State corrective compliance plan accepted
by the Secretary if the State corrects or discontinues,
as appropriate, the violation pursuant to the plan.
(3) Effect of failing to correct or discontinue
violation.--The Secretary shall assess some or all of a
penalty imposed on a State under subsection (a) with
respect to a violation if the State does not, in a
timely manner, correct or discontinue, as appropriate,
the violation pursuant to a State corrective compliance
plan accepted by the Secretary.
(4) Inapplicability to certain penalties.--This
subsection shall not apply to the imposition of a
penalty against a State under paragraph [(2)(B),] (6),
(7), [(8), (10), (12), (13), or (16)] (10), or (13) of
subsection (a).
(d) Limitation on Amount of Penalties.--
(1) In general.--In imposing the penalties described
in subsection (a), the Secretary shall not reduce any
quarterly payment to a State by more than 25 percent.
(2) Carryforward of unrecovered penalties.--To the
extent that paragraph (1) of this subsection prevents
the Secretary from recovering during a fiscal year the
full amount of penalties imposed on a State under
subsection (a) of this section for a prior fiscal year,
the Secretary shall apply any remaining amount of such
penalties to the grant payable to the State under
section 403(a)(1) for the immediately succeeding fiscal
year.
* * * * * * *
SEC. 411. DATA COLLECTION AND REPORTING.
(a) Quarterly Reports by States.--
[(1) General reporting requirement.--]
[(A)] (1) Contents of report.--Each eligible State
shall collect on a monthly basis, and report to the
Secretary on a quarterly basis, the following
disaggregated case record information on the families
receiving assistance under the State program funded
under this part [(except for information relating to
activities carried out under section 403(a)(5)) or any
other State program funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i))]:
[(i)] (A) The county of residence of the
family.
[(ii)] (B) Whether a child receiving such
assistance or an adult in the family is
receiving--
[(I)] (i) Federal disability
insurance benefits;
[(II)] (ii) benefits based on Federal
disability status;
[(III)] (iii) aid under a State plan
approved under title XIV (as in effect
without regard to the amendment made by
section 301 of the Social Security
Amendments of 1972);
[(IV)] (iv) aid or assistance under a
State plan approved under title XVI (as
in effect without regard to such
amendment) by reason of being
permanently and totally disabled; or
[(V)] (v) supplemental security
income benefits under title XVI (as in
effect pursuant to such amendment) by
reason of disability.
[(iii)] (C) The ages of the members of such
families.
[(iv)] (D) The number of individuals in the
family, and the relation of each family member
to the head of the family.
[(v)] (E) The employment status and earnings
of the employed adult in the family.
[(vi)] (F) The marital status of the adults
in the family, including whether such adults
have never married, are widowed, or are
divorced.
[(vii)] (G) The race and educational level of
each adult in the family.
[(viii)] (H) The race and educational level
of each child in the family.
[(ix)] (I) Whether the family received
subsidized housing, medical assistance under
the State plan approved under title XIX,
supplemental nutrition assistance program
benefits, or subsidized child care, and if the
latter 2, the amount received.
[(x)] (J) The number of months that the
family has received each type of assistance
under the program.
[(xi) If the adults participated in, and the
number of hours per week of participation in,
the following activities:
[(I) Education.
[(II) Subsidized private sector
employment.
[(III) Unsubsidized employment.
[(IV) Public sector employment, work
experience, or community service.
[(V) Job search.
[(VI) Job skills training or on-the-
job training.
[(VII) Vocational education.
[(xii) Information necessary to calculate
participation rates under section 407.]
(K) The work eligibility status of each
individual in the family, and--
(i) in the case of each work-eligible
individual (as defined in the
regulations promulgated pursuant to
section 407(i)(1)(A)(i)) in the
family--
(I) the number of hours
(including zero hours) per
month of participation in--
(aa) work activities
(as defined in section
407(d)); and
(bb) any other
activity required by
the State to remove a
barrier to employment;
and
(ii) in the case of each individual
in the family who is not a work-
eligible individual (as so defined),
the reason for that status.
(L) For each work-eligible individual (as so
defined) and each adult in the family who did
not participate in work activities (as so
defined) during a month, the reason for the
lack of participation.
[(xiii)] (M) The type and amount of
assistance received under the program,
including the amount of and reason for any
reduction of assistance (including sanctions).
[(xiv)] (N) Any amount of unearned income
received by any member of the family.
[(xv) ] (O) The citizenship of the members of
the family.
[(xvi)] (P) From a sample of closed cases,
whether the family left the program, and if so,
whether the family left due to--
[(I)] (i) employment;
[(II)] (ii) marriage;
[(III)] (iii) the prohibition set
forth in section 408(a)(7);
[(IV)] (iv) sanction; or
[(V)] (v) State policy.
[(xvii)] (Q) With respect to each individual
in the family who has not attained 20 years of
age, whether the individual is a parent of a
child in the family.
[(B) Use of samples.--
[(i) Authority.--A State may comply
with subparagraph (A) by submitting
disaggregated case record information
on a sample of families selected
through the use of scientifically
acceptable sampling methods approved by
the Secretary.
[(ii) Sampling and other methods.--
The Secretary shall provide the States
with such case sampling plans and data
collection procedures as the Secretary
deems necessary to produce
statistically valid estimates of the
performance of State programs funded
under this part and any other State
programs funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)). The Secretary may
develop and implement procedures for
verifying the quality of data submitted
by the States.]
(2) Report on use of federal funds to cover
administrative costs and overhead.--The report required
by paragraph (1) for a fiscal quarter shall include a
statement of the percentage of the funds paid to the
State under this part for the quarter that are used to
cover administrative costs or overhead[, with a
separate statement of the percentage of such funds that
are used to cover administrative costs or overhead
incurred for programs operated with funds provided
under section 403(a)(5).].
(3) Report on state expenditures on programs for
needy families.--The report required by paragraph (1)
for a fiscal quarter shall include a statement of the
total amount expended by the State during the quarter
on programs for needy families[, with a separate
statement of the total amount expended by the State
during the quarter on programs operated with funds
provided under section 403(a)(5).].
(4) Report on noncustodial parents participating in
work activities.--The report required by paragraph (1)
for a fiscal quarter shall include the number of
noncustodial parents in the State who participated in
work activities (as defined in section 407(d)) during
the quarter[, with a separate statement of the number
of such parents who participated in programs operated
with funds provided under section 403(a)(5).].
(5) Report on transitional services.--The report
required by paragraph (1) for a fiscal quarter shall
include the total amount expended by the State during
the quarter to provide transitional services to a
family that has ceased to receive assistance under this
part because of employment, along with a description of
such services.
(6) Report on families receiving assistance.--The
report required by paragraph (1) for a fiscal quarter
shall include for each month in the quarter--
(A) the number of families and individuals
receiving assistance under the State program
funded under this part (including the number of
2-parent and 1-parent families);
(B) the total dollar value of such assistance
received by all families; and
(C) with respect to families and individuals
participating in a program operated with funds
provided under section 403(a)(5)--
(i) the total number of such families
and individuals; and
(ii) the number of such families and
individuals whose participation in such
a program was terminated during a
month.
(7) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to define the data
elements with respect to which reports are required by
this subsection, and shall consult with the Secretary
of Labor in defining the data elements with respect to
programs operated with funds provided under section
403(a)(5).
(b) Annual Reports to the Congress by the Secretary.--Not
later than 6 months after the end of fiscal year 1997, and each
fiscal year thereafter, the Secretary shall transmit to the
Congress a report describing--
(1) whether the States are meeting--
(A) the [participation rates] outcome
measures described in section 407(a); and
(B) the objectives of--
(i) increasing employment and
earnings of needy families, and child
support collections; and
(ii) decreasing out-of-wedlock
pregnancies and child poverty;
(2) the demographic and financial characteristics of
families applying for assistance, families receiving
assistance, and families that become ineligible to
receive assistance;
(3) the characteristics of each State program funded
under this part; and
(4) the trends in employment and earnings of needy
families with minor children living at home.
[(c) Pre-reauthorization State-by-state Reports on Engagement
in Additional Work Activities and Expenditures for Other
Benefits and Services.--
[(1) State reporting requirements.--
[(A) Reporting periods and deadlines.--Each
eligible State shall submit to the Secretary
the following reports:
[(i) March 2011 report.--Not later
than May 31, 2011, a report for the
period that begins on March 1, 2011,
and ends on March 31, 2011, that
contains the information specified in
subparagraphs (B) and (C).
[(ii) April-june, 2011 report.--Not
later than August 31, 2011, a report
for the period that begins on April 1,
2011, and ends on June 30, 2011, that
contains with respect to the 3 months
that occur during that period--
[(I) the average monthly
numbers for the information
specified in subparagraph (B);
and
[(II) the information
specified in subparagraph (C).
[(B) Engagement in additional work
activities.--
[(i) With respect to each work-
eligible individual in a family
receiving assistance during a reporting
period specified in subparagraph (A),
whether the individual engages in any
activities directed toward attaining
self-sufficiency during a month
occurring in a reporting period, and if
so, the specific activities--
[(I) that do not qualify as a
work activity under section
407(d) but that are otherwise
reasonably calculated to help
the family move toward self-
sufficiency; or
[(II) that are of a type that
would be counted toward the
State participation rates under
section 407 but for the fact
that--
[(aa) the work-
eligible individual did
not engage in
sufficient hours of the
activity;
[(bb) the work-
eligible individual has
reached the maximum
time limit allowed for
having participation in
the activity counted
toward the State's work
participation rate; or
[(cc) the number of
work-eligible
individuals engaged in
such activity exceeds a
limitation under such
section.
[(ii) Any other information that the
Secretary determines appropriate with
respect to the information required
under clause (i), including if the
individual has no hours of
participation, the principal reason or
reasons for such non-participation.
[(C) Expenditures on other benefits and
services.--
[(i) Detailed, disaggregated
information regarding the types of, and
amounts of, expenditures made by the
State during a reporting period
specified in subparagraph (A) using--
[(I) Federal funds provided
under section 403 that are (or
will be) reported by the State
on Form ACF-196 (or any
successor form) under the
category of other expenditures
or the category of benefits or
services provided in accordance
with the authority provided
under section 404(a)(2); or
[(II) State funds expended to
meet the requirements of
section 409(a)(7) and reported
by the State in the category of
other expenditures on Form ACF-
196 (or any successor form).
[(ii) Any other information that the
Secretary determines appropriate with
respect to the information required
under clause (i).
[(2) Publication of summary and analysis of
engagement in additional activities.--Concurrent with
the submission of each report required under paragraph
(1)(A), an eligible State shall publish on an Internet
website maintained by the State agency responsible for
administering the State program funded under this part
(or such State-maintained website as the Secretary may
approve)--
[(A) a summary of the information submitted
in the report:
[(B) an analysis statement regarding the
extent to which the information changes
measures of total engagement in work activities
from what was (or will be) reported by the
State in the quarterly report submitted under
subsection (a) for the comparable period; and
[(C) a narrative describing the most common
activities contained in the report that are not
countable toward the State participation rates
under section 407.
[(3) Application of authority to use sampling.--
Subparagraph (B) of subsection (a)(1) shall apply to
the reports required under paragraph (1) of this
subsection in the same manner as subparagraph (B) of
subsection (a)(1) applies to reports required under
subparagraph (A) of subsection (a)(1).
[(4) Secretarial reports to congress.--
[(A) March 2011 report.--Not later than June
30, 2011, the Secretary shall submit to
Congress a report on the information submitted
by eligible States for the March 2011 reporting
period under paragraph (1)(A)(i). The report
shall include a State-by-State summary and
analysis of such information, identification of
any States with missing or incomplete reports,
and recommendations for such administrative or
legislative changes as the Secretary determines
are necessary to require eligible States to
report the information on a recurring basis.
[(B) April-june, 2011 report.--Not later than
September 30, 2011, the Secretary shall submit
to Congress a report on the information
submitted by eligible States for the April-June
2011 reporting period under paragraph
(1)(A)(ii). The report shall include a State-
by-State summary and analysis of such
information, identification of any States with
missing or incomplete reports, and
recommendations for such administrative or
legislative changes as the Secretary determines
are necessary to require eligible States to
report the information on a recurring basis
[(5) Authority for expeditious implementation.--The
requirements of chapter 5 of title 5, United States
Code (commonly referred to as the ``Administrative
Procedure Act'') or any other law relating to
rulemaking or publication in the Federal Register shall
not apply to the issuance of guidance or instructions
by the Secretary with respect to the implementation of
this subsection to the extent the Secretary determines
that compliance with any such requirement would impede
the expeditious implementation of this subsection.
[(d) Data Exchange Standardization for Improved
Interoperability.--
[(1) Data exchange standards.--
[(A) Designation.--The Secretary, in
consultation with an interagency work group
which shall be established by the Office of
Management and Budget, and considering State
and tribal perspectives, shall, by rule,
designate a data exchange standard for any
category of information required to be reported
under this part.
[(B) Data exchange standards must be
nonproprietary and interoperable.--The data
exchange standard designated under subparagraph
(A) shall, to the extent practicable, be
nonproprietary and interoperable.
[(C) Other requirements.--In designating data
exchange standards under this section, the
Secretary shall, to the extent practicable,
incorporate--
[(i) interoperable standards
developed and maintained by an
international voluntary consensus
standards body, as defined by the
Office of Management and Budget, such
as the International Organization for
Standardization;
[(ii) interoperable standards
developed and maintained by
intergovernmental partnerships, such as
the National Information Exchange
Model; and
[(iii) interoperable standards
developed and maintained by Federal
entities with authority over
contracting and financial assistance,
such as the Federal Acquisition
Regulatory Council.
[(2) Data exchange standards for reporting.--
[(A) Designation.--The Secretary, in
consultation with an interagency work group
established by the Office of Management and
Budget, and considering State and tribal
perspectives, shall, by rule, designate data
exchange standards to govern the data reporting
required under this part.
[(B) Requirements.--The data exchange
standards required by subparagraph (A) shall,
to the extent practicable--
[(i) incorporate a widely-accepted,
nonproprietary, searchable, computer-
readable format;
[(ii) be consistent with and
implement applicable accounting
principles; and
[(iii) be capable of being
continually upgraded as necessary.
[(C) Incorporation of nonproprietary
standards.--In designating reporting standards
under this paragraph, the Secretary shall, to
the extent practicable, incorporate existing
nonproprietary standards, such as the
eXtensible Markup Language.]
(c) Reporting of Information on Employment and Earnings
Outcomes.--The Secretary, in consultation with the Secretary of
Labor, shall determine the information that is necessary to
compute the employment and earnings outcomes and the
statistical adjustment model for the employment and earnings
outcomes required under section 407, and each eligible State
shall collect and report that information to the Secretary.
(d) Data Exchange Standards for Improved Interoperability.--
(1) Designation.--The Secretary shall, in
consultation with an interagency work group established
by the Office of Management and Budget and considering
State government perspectives, by rule, designate data
exchange standards to govern, under this part--
(A) necessary categories of information that
State agencies operating programs under State
plans approved under this part are required
under applicable Federal law to electronically
exchange with another State agency; and
(B) Federal reporting and data exchange
required under applicable Federal law.
(2) Requirements.--The data exchange standards
required by paragraph (1) shall, to the extent
practicable--
(A) incorporate a widely accepted, non-
proprietary, searchable, computer-readable
format, such as the eXtensible Markup Language;
(B) contain interoperable standards developed
and maintained by intergovernmental
partnerships, such as the National Information
Exchange Model;
(C) incorporate interoperable standards
developed and maintained by Federal entities
with authority over contracting and financial
assistance;
(D) be consistent with and implement
applicable accounting principles;
(E) be implemented in a manner that is cost-
effective and improves program efficiency and
effectiveness; and
(F) be capable of being continually upgraded
as necessary.
(3) Rule of construction.--Nothing in this subsection
shall be construed to require a change to existing data
exchange standards found to be effective and efficient.
* * * * * * *
SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
(a) Grants for Indian Tribes.--
(1) Tribal family assistance grant.--
(A) In general.--For each of fiscal years
[2017 and 2018] 2019 through 2023, the
Secretary shall pay to each Indian tribe that
has an approved tribal family assistance plan a
tribal family assistance grant for the fiscal
year in an amount equal to the amount
determined under subparagraph (B), which shall
be reduced for a fiscal year, on a pro rata
basis for each quarter, in the case of a tribal
family assistance plan approved during a fiscal
year for which the plan is to be in effect, and
shall reduce the grant payable under section
403(a)(1) to any State in which lies the
service area or areas of the Indian tribe by
that portion of the amount so determined that
is attributable to expenditures by the State.
(B) Amount determined.--
(i) In general.--The amount
determined under this subparagraph is
an amount equal to the total amount of
the Federal payments to a State or
States under section 403 (as in effect
during such fiscal year) for fiscal
year 1994 attributable to expenditures
(other than child care expenditures) by
the State or States under parts A and F
(as so in effect) for fiscal year 1994
for Indian families residing in the
service area or areas identified by the
Indian tribe pursuant to subsection
(b)(1)(C) of this section.
(ii) Use of state submitted data.--
(I) In general.--The
Secretary shall use State
submitted data to make each
determination under clause (i).
(II) Disagreement with
determination.--If an Indian
tribe or tribal organization
disagrees with State submitted
data described under subclause
(I), the Indian tribe or tribal
organization may submit to the
Secretary such additional
information as may be relevant
to making the determination
under clause (i) and the
Secretary may consider such
information before making such
determination.
(2) Grants for indian tribes that received jobs
funds.--
(A) In general.--For each of fiscal years
2017 and 2018, the Secretary shall pay to each
eligible Indian tribe that proposes to operate
a program described in subparagraph (C) a grant
in an amount equal to the amount received by
the Indian tribe in fiscal year 1994 under
section 482(i) (as in effect during fiscal year
1994).
(B) Eligible indian tribe.--For purposes of
subparagraph (A), the term ``eligible Indian
tribe'' means an Indian tribe or Alaska Native
organization that conducted a job opportunities
and basic skills training program in fiscal
year 1995 under section 482(i) (as in effect
during fiscal year 1995).
(C) Use of grant.--Each Indian tribe to which
a grant is made under this paragraph shall use
the grant for the purpose of operating a
program to make work activities available to
such population and such service area or areas
as the tribe specifies.
(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated $7,633,287
for each fiscal year specified in subparagraph
(A) for grants under subparagraph (A).
[(3) Welfare-to-work grants.--
[(A) In general.--The Secretary of Labor
shall award a grant in accordance with this
paragraph to an Indian tribe for each fiscal
year specified in section 403(a)(5)(H) for
which the Indian tribe is a welfare-to-work
tribe, in such amount as the Secretary of Labor
deems appropriate, subject to subparagraph (B)
of this paragraph.
[(B) Welfare-to-work tribe.--An Indian tribe
shall be considered a welfare-to-work tribe for
a fiscal year for purposes of this paragraph if
the Indian tribe meets the following
requirements:
[(i) The Indian tribe has submitted
to the Secretary of Labor a plan which
describes how, consistent with section
403(a)(5), the Indian tribe will use
any funds provided under this paragraph
during the fiscal year. If the Indian
tribe has a tribal family assistance
plan, the plan referred to in the
preceding sentence shall be in the form
of an addendum to the tribal family
assistance plan.
[(ii) The Indian tribe is operating a
program under a tribal family
assistance plan approved by the
Secretary of Health and Human Services,
a program described in paragraph
(2)(C), or an employment program funded
through other sources under which
substantial services are provided to
recipients of assistance under a
program funded under this part.
[(iii) The Indian tribe has provided
the Secretary of Labor with an estimate
of the amount that the Indian tribe
intends to expend during the fiscal
year (excluding tribal expenditures
described in section 409(a)(7)(B)(iv)
(other than subclause (III) thereof))
pursuant to this paragraph.
[(iv) The Indian tribe has agreed to
negotiate in good faith with the
Secretary of Health and Human Services
with respect to the substance and
funding of any evaluation under section
413(j), and to cooperate with the
conduct of any such evaluation.
[(C) Limitations on use of funds.--
[(i) In general.--Section
403(a)(5)(C) shall apply to funds
provided to Indian tribes under this
paragraph in the same manner in which
such section applies to funds provided
under section 403(a)(5).
[(ii) Waiver authority.--The
Secretary of Labor may waive or modify
the application of a provision of
section 403(a)(5)(C) (other than clause
(viii) thereof) with respect to an
Indian tribe to the extent necessary to
enable the Indian tribe to operate a
more efficient or effective program
with the funds provided under this
paragraph.
[(iii) Regulations.--Within 90 days
after the date of the enactment of this
paragraph, the Secretary of Labor,
after consultation with the Secretary
of Health and Human Services and the
Secretary of Housing and Urban
Development, shall prescribe such
regulations as may be necessary to
implement this paragraph.]
(b) 3-Year Tribal Family Assistance Plan.--
(1) In general.--Any Indian tribe that desires to
receive a tribal family assistance grant shall submit
to the Secretary a 3-year tribal family assistance plan
that--
(A) outlines the Indian tribe's approach to
providing welfare-related services for the 3-
year period, consistent with this section;
(B) specifies whether the welfare-related
services provided under the plan will be
provided by the Indian tribe or through
agreements, contracts, or compacts with
intertribal consortia, States, or other
entities;
(C) identifies the population and service
area or areas to be served by such plan;
(D) provides that a family receiving
assistance under the plan may not receive
duplicative assistance from other State or
tribal programs funded under this part;
(E) identifies the employment opportunities
in or near the service area or areas of the
Indian tribe and the manner in which the Indian
tribe will cooperate and participate in
enhancing such opportunities for recipients of
assistance under the plan consistent with any
applicable State standards; and
(F) applies the fiscal accountability
provisions of section 5(f)(1) of the Indian
Self-Determination and Education Assistance Act
(25 U.S.C. 450c(f)(1)), relating to the
submission of a single-agency audit report
required by chapter 75 of title 31, United
States Code.
(2) Approval.--The Secretary shall approve each
tribal family assistance plan submitted in accordance
with paragraph (1).
(3) Consortium of tribes.--Nothing in this section
shall preclude the development and submission of a
single tribal family assistance plan by the
participating Indian tribes of an intertribal
consortium.
(c) Minimum Work Participation Requirements and Time
Limits.--The Secretary, with the participation of Indian
tribes, shall establish for each Indian tribe receiving a grant
under this section minimum work participation requirements,
appropriate time limits for receipt of welfare-related services
under the grant, and penalties against individuals--
(1) consistent with the purposes of this section;
(2) consistent with the economic conditions and
resources available to each tribe; and
(3) similar to comparable provisions in section
407(e).
(d) Emergency Assistance.--Nothing in this section shall
preclude an Indian tribe from seeking emergency assistance from
any Federal loan program or emergency fund.
(e) Accountability.--Nothing in this section shall be
construed to limit the ability of the Secretary to maintain
program funding accountability consistent with--
(1) generally accepted accounting principles; and
(2) the requirements of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450 et seq.).
[(f) Eligibility for Federal Loans.--Section 406 shall apply
to an Indian tribe with an approved tribal assistance plan in
the same manner as such section applies to a State, except that
section 406(c) shall be applied by substituting ``section
412(a)'' for ``section 403(a)''.]
(g) Penalties.--
(1) Subsections (a)(1), [(a)(6),] (b), and (c) of
section 409, shall apply to an Indian tribe with an
approved tribal assistance plan in the same manner as
such subsections apply to a State.
(2) Section 409(a)(3) shall apply to an Indian tribe
with an approved tribal assistance plan by substituting
``meet minimum work participation requirements
established under section 412(c)'' for ``comply with
section 407(a)''.
(h) Data Collection and Reporting.--Section 411 shall apply
to an Indian tribe with an approved tribal family assistance
plan.
(i) Special Rule for Indian Tribes in Alaska.--
(1) In general.--Notwithstanding any other provision
of this section, and except as provided in paragraph
(2), an Indian tribe in the State of Alaska that
receives a tribal family assistance grant under this
section shall use the grant to operate a program in
accordance with requirements comparable to the
requirements applicable to the program of the State of
Alaska funded under this part. Comparability of
programs shall be established on the basis of program
criteria developed by the Secretary in consultation
with the State of Alaska and such Indian tribes.
(2) Waiver.--An Indian tribe described in paragraph
(1) may apply to the appropriate State authority to
receive a waiver of the requirement of paragraph (1).
SEC. 413. EVALUATION OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND
RELATED PROGRAMS.
(a) Evaluation of the Impacts of [TANF] JOBS.--The Secretary
shall conduct research on the effect of State programs funded
under this part [and any other State program funded with
qualified State expenditures (as defined in section
409(a)(7)(B)(i))] on employment, self-sufficiency, child well-
being, unmarried births, marriage, poverty, economic mobility,
and other factors as determined by the Secretary.
(b) Evaluation of Grants to Improve Child Well-being by
Promoting Healthy Marriage and Responsible Fatherhood.--The
Secretary shall conduct research to determine the effects of
the grants made under section 403(a)(2) on child well-being,
marriage, family stability, economic mobility, poverty, and
other factors as determined by the Secretary.
(c) Dissemination of Information.--The Secretary shall, in
consultation with States receiving funds provided under this
part, develop methods of disseminating information on any
research, evaluation, or study conducted under this section,
including facilitating the sharing of information and best
practices among States and localities.
(d) State-Initiated Evaluations.--A State shall be eligible
to receive funding to evaluate the State program funded under
this part [or any other State program funded with qualified
State expenditures (as defined in section 409(a)(7)(B)(i))]
if--
(1) the State submits to the Secretary a description
of the proposed evaluation;
(2) the Secretary determines that the design and
approach of the proposed evaluation is rigorous and is
likely to yield information that is credible and will
be useful to other States; and
(3) unless waived by the Secretary, the State
contributes to the cost of the evaluation, from non-
Federal sources, an amount equal to at least 25 percent
of the cost of the proposed evaluation.
(e) Census Bureau Research.--
(1) The Bureau of the Census shall implement or
enhance household surveys of program participation, in
consultation with the Secretary and the Bureau of Labor
Statistics and made available to interested parties, to
allow for the assessment of the outcomes of continued
welfare reform on the economic and child well-being of
low-income families with children, including those who
received assistance or services from a State program
funded under this part [or any other State program
funded with qualified State expenditures (as defined in
section 409(a)(7)(B)(i))]. The content of the surveys
should include such information as may be necessary to
examine the issues of unmarried childbearing, marriage,
welfare dependency and compliance with work
requirements, the beginning and ending of spells of
assistance, work, earnings and employment stability,
and the well-being of children.
(2) To carry out the activities specified in
paragraph (1), the Bureau of the Census, the Secretary,
and the Bureau of Labor Statistics shall consider ways
to improve the surveys and data derived from the
surveys to--
(A) address under reporting of the receipt of
means-tested benefits and tax benefits for low-
income individuals and families;
(B) increase understanding of poverty spells
and long-term poverty, including by
facilitating the matching of information to
better understand intergenerational poverty;
(C) generate a better geographical
understanding of poverty such as through State-
based estimates and measures of neighborhood
poverty;
(D) increase understanding of the effects of
means-tested benefits and tax benefits on the
earnings and incomes of low-income families;
and
(E) improve how poverty and economic well-
being are measured, including through the use
of consumption measures, material deprivation
measures, social exclusion measures, and
economic and social mobility measures.
(f) Research and Evaluation Conducted Under This Section.--
Research and evaluation conducted under this section designed
to determine the effects of a program or policy (other than
research conducted under subsection (e)) shall use experimental
designs using random assignment or other reliable, evidence-
based research methodologies that allow for the strongest
possible causal inferences when random assignment is not
feasible.
(g) Development of What Works Clearinghouse of Proven and
Promising Approaches to Move Welfare Recipients Into Work.--
(1) In general.--The Secretary, in consultation with
the Secretary of Labor, shall develop a database (which
shall be referred to as the ``What Works Clearinghouse
of Proven and Promising Projects to Move Welfare
Recipients into Work'') of the projects that used a
proven approach or a promising approach in moving
welfare recipients into work, based on independent,
rigorous evaluations of the projects. The database
shall include a separate listing of projects that used
a developmental approach in delivering services and a
further separate listing of the projects with no or
negative effects. The Secretary shall add to the What
Works Clearinghouse of Proven and Promising Projects to
Move Welfare Recipients into Work data about the
projects that, based on an independent, well-conducted
experimental evaluation of a program or project, using
random assignment or other research methodologies that
allow for the strongest possible causal inferences,
have shown they are proven, promising, developmental,
or ineffective approaches.
(2) Criteria for evidence of effectiveness of
approach.--The Secretary, in consultation with the
Secretary of Labor and organizations with experience in
evaluating research on the effectiveness of various
approaches in delivering services to move welfare
recipients into work, shall--
(A) establish criteria for evidence of
effectiveness; and
(B) ensure that the process for establishing
the criteria--
(i) is transparent;
(ii) is consistent across agencies;
(iii) provides opportunity for public
comment; and
(iv) takes into account efforts of
Federal agencies to identify and
publicize effective interventions,
including efforts at the Department of
Health and Human Services, the
Department of Education, and the
Department of Justice.
(h) Appropriation.--
(1) In general.--Of the amount appropriated by
section 403(a)(1) for each fiscal year, 0.33 percent
shall be available for research, technical assistance,
and evaluation under this section.
(2) Allocation.--Of the amount made available under
paragraph (1) for each fiscal year, the Secretary shall
make available $10,000,000 plus such additional amount
as the Secretary deems necessary and appropriate, to
carry out subsection (e).
(3) Baseline.--The baseline established pursuant to
section 257 of the Balanced Budget and Deficit Control
Act of 1985 (2 U.S.C. 907(b)(2)) for the Temporary
Assistance for Needy Families Program shall be recorded
by the Office of Management and Budget and the
Congressional Budget Office at the level prior to any
transfers recorded pursuant to section 413(h) of this
Act.
* * * * * * *
SEC. 416. ADMINISTRATION.
(a) In general._The programs under this part and part D
shall be administered by an Assistant Secretary for Family
Support within the Department of Health and Human Services, who
shall be appointed by the President, by and with the advice and
consent of the Senate, and who shall be in addition to any
other Assistant Secretary of Health and Human Services provided
for by law[, and the Secretary shall reduce the Federal
workforce within the Department of Health and Human Services by
an amount equal to the sum of 75 percent of the full-time
equivalent positions at such Department that relate to any
direct spending program, or any program funded through
discretionary spending, that has been converted into a block
grant program under the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 and the amendments made
by such Act, and by an amount equal to 75 percent of that
portion of the total full-time equivalent departmental
management positions at such Department that bears the same
relationship to the amount appropriated for any direct spending
program, or any program funded through discretionary spending,
that has been converted into a block grant program under the
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 and the amendments made by such Act, as such amount
relates to the total amount appropriated for use by such
Department, and, notwithstanding any other provision of law,
the Secretary shall take such actions as may be necessary,
including reductions in force actions, consistent with sections
3502 and 3595 of title 5, United States Code, to reduce the
full-time equivalent positions within the Department of Health
and Human Services by 245 full-time equivalent positions
related to the program converted into a block grant under the
amendments made by section 103 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996, and by 60
full-time equivalent managerial positions in the Department.].
(b) Coordination of Activities.--The Secretary shall
coordinate all activities of the Department of Health and Human
Services relating to work activities (as defined in section
407(d)) and requirements and measurement of employment
outcomes, and, to the maximum extent practicable, coordinate
the activities of the Department in this regard with similar
activities of other Federal entities.
(c) Dissemination of Information.--The Secretary shall
disseminate, for voluntary informational purposes, information
on practices that scientifically valid research indicates are
most successful in improving the quality of State and tribal
programs funded under this part.
* * * * * * *
SEC. 418. FUNDING FOR CHILD CARE.
(a) General Child Care Entitlement.--
(1) General entitlement.--Subject to the amount
appropriated under paragraph (3), each State shall, for
the purpose of providing child care assistance, be
entitled to payments under a grant under this
subsection for a fiscal year in an amount equal to the
greater of--
(A) the total amount required to be paid to
the State under section 403 for fiscal year
1994 or 1995 (whichever is greater) with
respect to expenditures for child care under
subsections (g) and (i) of section 402 (as in
effect before October 1, 1995); or
(B) the average of the total amounts required
to be paid to the State for fiscal years 1992
through 1994 under the subsections referred to
in subparagraph (A).
(2) Remainder.--
(A) Grants.--The Secretary shall use any
amounts appropriated for a fiscal year under
paragraph (3), and remaining after the
reservation described in paragraph (4) and
after grants are awarded under paragraph (1),
to make grants to States under this paragraph.
(B) Allotments to states.--The total amount
available for payments to States under this
paragraph, as determined under subparagraph
(A), shall be allotted among the States based
on the formula used for determining the amount
of Federal payments to each State under section
403(n) (as in effect before October 1, 1995).
(C) Federal matching of state expenditures
exceeding historical expenditures.--The
Secretary shall pay to each eligible State for
a fiscal year an amount equal to the lesser of
the State's allotment under subparagraph (B) or
the Federal medical assistance percentage for
the State for the fiscal year (as defined in
section 1905(b), as such section was in effect
on September 30, 1995) of so much of the
State's expenditures for child care in that
fiscal year as exceed the total amount of
expenditures by the State (including
expenditures from amounts made available from
Federal funds) in fiscal year 1994 or 1995
(whichever is greater) for the programs
described in paragraph (1)(A).
(D) Redistribution.--
(i) In general.--With respect to any
fiscal year, if the Secretary
determines (in accordance with clause
(ii)) that any amounts allotted to a
State under this paragraph for such
fiscal year will not be used by such
State during such fiscal year for
carrying out the purpose for which the
such amounts are allotted, the
Secretary shall make such amounts
available in the subsequent fiscal year
for carrying out such purpose to one or
more States which apply for such funds
to the extent the Secretary determines
that such States will be able to use
such additional amounts for carrying
out such purpose. Such available
amounts shall be redistributed to a
State pursuant to section 403(n) (as
such section was in effect before
October 1, 1995) by substituting ``the
number of children residing in all
States applying for such funds'' for
``the number of children residing in
the United States in the second
preceding fiscal year''.
(ii) Time of determination and
distribution.--The determination of the
Secretary under clause (i) for a fiscal
year shall be made not later than the
end of the first quarter of the
subsequent fiscal year. The
redistribution of amounts under clause
(i) shall be made as close as
practicable to the date on which such
determination is made. Any amount made
available to a State from an
appropriation for a fiscal year in
accordance with this subparagraph
shall, for purposes of this part, be
regarded as part of such State's
payment (as determined under this
subsection) for the fiscal year in
which the redistribution is made.
(3) Appropriation.--For grants under this section,
there are appropriated [$2,917,000,000 for each of
fiscal years 2017 and 2018] $3,525,000,000 for each of
fiscal years 2019 through 2023.
(4) Indian tribes.--The Secretary shall reserve not
less than 1 percent, and not more than 2 percent, of
the aggregate amount appropriated to carry out this
section in each fiscal year for payments to Indian
tribes and tribal organizations.
(5) Data used to determine state and federal shares
of expenditures.--In making the determinations
concerning expenditures required under paragraphs (1)
and (2)(C), the Secretary shall use information that
was reported by the State on ACF Form 231 and available
as of the applicable dates specified in clauses (i)(I),
(ii), and (iii)(III) of section 403(a)(1)(D).
(b) Use of Funds.--
(1) In general.--Amounts received by a State under
this section shall only be used to provide child care
assistance. Amounts received by a State under a grant
under subsection (a)(1) shall be available for use by
the State without fiscal year limitation.
(2) Use for certain populations.--A State shall
ensure that not less than 70 percent of the total
amount of funds received by the State in a fiscal year
under this section are used to provide child care
assistance to families who are receiving assistance
under a State program under this part, families who are
attempting through work activities to transition off of
such assistance program, and families who are at risk
of becoming dependent on such assistance program.
(c) Application of Child Care and Development Block Grant Act
of 1990.--Notwithstanding any other provision of law, amounts
provided to a State under this section shall be transferred to
the lead agency under the Child Care and Development Block
Grant Act of 1990, integrated by the State into the programs
established by the State under such Act, and be subject to
requirements and limitations of such Act.
(d) Definition.--As used in this section, the term ``State''
means each of the 50 States and the District of Columbia.
SEC. 419. DEFINITIONS.
As used in this part:
(1) Adult.--The term ``adult'' means an individual
who is not a minor child.
(2) Minor child.--The term ``minor child'' means an
individual who--
(A) has not attained 18 years of age; or
(B) has not attained 19 years of age and is a
full-time student in a secondary school (or in
the equivalent level of vocational or technical
training).
(3) Fiscal year.--The term ``fiscal year'' means any
12-month period ending on September 30 of a calendar
year.
(4) Indian, indian tribe, and tribal organization.--
(A) In general.--Except as provided in
subparagraph (B), the terms ``Indian'',
``Indian tribe'', and ``tribal organization''
have the meaning given such terms by section 4
of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b).
(B) Special rule for indian tribes in
alaska.--The term ``Indian tribe'' means, with
respect to the State of Alaska, only the
Metlakatla Indian Community of the Annette
Islands Reserve and the following Alaska Native
regional nonprofit corporations:
(i) Arctic Slope Native Association.
(ii) Kawerak, Inc.
(iii) Maniilaq Association.
(iv) Association of Village Council
Presidents.
(v) Tanana Chiefs Conference.
(vi) Cook Inlet Tribal Council.
(vii) Bristol Bay Native Association.
(viii) Aleutian and Pribilof Island
Association.
(ix) Chugachmuit.
(x) Tlingit Haida Central Council.
(xi) Kodiak Area Native Association.
(xii) Copper River Native
Association.
(5) State.--Except as otherwise specifically
provided, the term ``State'' means the 50 States of the
United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa.
(6) Assistance.--The term ``assistance'' means cash,
payments, vouchers, and other forms of benefits
designed to meet a family's ongoing basic needs (such
as for food, clothing, shelter, utilities, household
goods, personal care items, and general incidental
expenses).
(7) Work supports.--The term ``work supports'' means
assistance and non-assistance transportation benefits
(such as the value of allowances, bus tokens, car
payments, auto repair, auto insurance reimbursement,
and van services provided in order to help families
obtain, retain, or advance in employment, participate
in work activities (as defined in section 407(d)), or
as a non-recurrent, short-term benefit, including goods
provided to individuals in order to help them obtain or
maintain employment (such as tools, uniforms, fees to
obtain special licenses, bonuses, incentives, and work
support allowances and expenditures for job access).
(8) Supportive services.--The term ``supportive
services'' means services such as domestic violence
services, and mental health, substance abuse and
disability services, housing counseling services, and
other family supports, except to the extent that the
provision of the service would violate section
408(a)(6).
(9) JOBS benefit.--The term ``JOBS benefit'' means--
(A) assistance; or
(B) wage subsidies that are paid, with funds
provided under section 403(a) or with qualified
State expenditures, with respect to a person
who--
(i) was a work-eligible individual
(as defined in the regulations
promulgated pursuant to section
407(i)(1)(A)(i)) at the time of entry
into subsidized employment, such as on-
the-job training or apprenticeship; and
(ii) is not receiving assistance.
* * * * * * *
Part D--Child Support and Establishment of Paternity
* * * * * * *
DUTIES OF THE SECRETARY
Sec. 452. (a) The Secretary shall establish, within the
Department of Health and Human Services a separate
organizational unit, under the direction of a designee of the
Secretary, who shall report directly to the Secretary and who
shall--
(1) establish such standards for State programs for
locating noncustodial parents, establishing paternity,
and obtaining child support and support for the spouse
(or former spouse) with whom the noncustodial parent's
child is living as he determines to be necessary to
assure that such programs will be effective;
(2) establish minimum organizational and staffing
requirements for State units engaged in carrying out
such programs under plans approved under this part;
(3) review and approve State plans for such programs;
(4)(A) review data and calculations transmitted by
State agencies pursuant to section 454(15)(B) on State
program accomplishments with respect to performance
indicators for purposes of subsection (g) of this
section and section 458;
(B) review annual reports submitted pursuant to
section 454(15)(A) and, as appropriate, provide to the
State comments, recommendations for additional or
alternative corrective actions, and technical
assistance; and
(C) conduct audits, in accordance with the Government
auditing standards of the Comptroller General of the
United States--
(i) at least once every 3 years (or more
frequently, in the case of a State which fails
to meet the requirements of this part
concerning performance standards and
reliability of program data) to assess the
completeness, reliability, and security of the
data and the accuracy of the reporting systems
used in calculating performance indicators
under subsection (g) of this section and
section 458;
(ii) of the adequacy of financial management
of the State program operated under the State
plan approved under this part, including
assessments of--
(I) whether Federal and other funds
made available to carry out the State
program are being appropriately
expended, and are properly and fully
accounted for; and
(II) whether collections and
disbursements of support payments are
carried out correctly and are fully
accounted for; and
(iii) for such other purposes as the
Secretary may find necessary;
(5) assist States in establishing adequate reporting
procedures and maintain records of the operations of
programs established pursuant to this part in each
State, and establish procedures to be followed by
States for collecting and reporting information
required to be provided under this part, and establish
uniform definitions (including those necessary to
enable the measurement of State compliance with the
requirements of this part relating to expedited
processes) to be applied in following such procedures;
(6) maintain records of all amounts collected and
disbursed under programs established pursuant to the
provisions of this part and of the costs incurred in
collecting such amounts;
(7) provide technical assistance to the States to
help them establish effective systems for collecting
child and spousal support and establishing paternity,
and specify the minimum requirements of an affidavit to
be used for the voluntary acknowledgment of paternity
which shall include the social security number of each
parent and, after consultation with the States, other
common elements as determined by such designee;
(8) receive applications from States for permission
to utilize the courts of the United States to enforce
court orders for support against noncustodial parents
and, upon a finding that (A) another State has not
undertaken to enforce the court order of the
originating State against the noncustodial parent
within a reasonable time, and (B) that utilization of
the Federal courts is the only reasonable method of
enforcing such order, approve such applications;
(9) operate the Federal Parent Locator Service
established by section 453;
(10) not later than three months after the end of
each fiscal year, beginning with the year 1977, submit
to the Congress a full and complete report on all
activities undertaken pursuant to the provisions of
this part, which report shall include, but not be
limited to, the following:
(A) total program costs and collections set
forth in sufficient detail to show the cost to
the States and the Federal Government, the
distribution of collections to families, State
and local governmental units, and the Federal
Government; and an identification of the
financial impact of the provisions of this
part, including--
(i) the total amount of child support
payments collected as a result of
services furnished during the fiscal
year to individuals receiving services
under this part;
(ii) the cost to the States and to
the Federal Government of so furnishing
the services; and
(iii) the number of cases involving
families--
(I) who became ineligible for
assistance under State programs
funded under part A during a
month in the fiscal year; and
(II) with respect to whom a
child support payment was
received in the month;
(B) costs and staff associated with the
Office of Child Support Enforcement;
(C) the following data, separately stated for
cases where the child is receiving assistance
under a State program funded under part A (or
foster care maintenance payments under part E),
or formerly received such assistance or
payments and the State is continuing to collect
support assigned to it pursuant to section
408(a)(3) or under section 471(a)(17) or 1912,
and for all other cases under this part:
(i) the total number of cases in
which a support obligation has been
established in the fiscal year for
which the report is submitted;
(ii) the total number of cases in
which a support obligation has been
established;
(iii) the number of cases in which
support was collected during the fiscal
year;
(iv) the total amount of support
collected during such fiscal year and
distributed as current support;
(v) the total amount of support
collected during such fiscal year and
distributed as arrearages;
(vi) the total amount of support due
and unpaid for all fiscal years; and
(vii) the number of child support
cases filed in each State in such
fiscal year, and the amount of the
collections made in each State in such
fiscal year, on behalf of children
residing in another State or against
parents residing in another State;
(D) the status of all State plans under this
part as of the end of the fiscal year last
ending before the report is submitted, together
with an explanation of any problems which are
delaying or preventing approval of State plans
under this part;
(E) data, by State, on the use of the Federal
Parent Locator Service, and the number of
locate requests submitted without the
noncustodial parent's social security account
number;
(F) the number of cases, by State, in which
an applicant for or recipient of assistance
under a State program funded under part A has
refused to cooperate in identifying and
locating the noncustodial parent and the number
of cases in which refusal so to cooperate is
based on good cause (as determined by the
State);
(G) data, by State, on use of the Internal
Revenue Service for collections, the number of
court orders on which collections were made,
the number of paternity determinations made and
the number of parents located, in sufficient
detail to show the cost and benefits to the
States and to the Federal Government;
(H) the major problems encountered which have
delayed or prevented implementation of the
provisions of this part during the fiscal year
last ending prior to the submission of such
report; and
(I) compliance, by State, with the standards
established pursuant to subsections (h) and
(i); and
(11) not later than October 1, 1996, after consulting
with the State directors of programs under this part,
promulgate forms to be used by States in interstate
cases for--
(A) collection of child support through
income withholding;
(B) imposition of liens; and
(C) administrative subpoenas.
(b) The Secretary shall, upon the request of any State having
in effect a State plan approved under this part, certify to the
Secretary of the Treasury for collection pursuant to the
provisions of section 6305 of the Internal Revenue Code of 1954
the amount of any child support obligation (including any
support obligation with respect to the parent who is living
with the child and receiving assistance under the State program
funded under part A) which is assigned to such State or is
undertaken to be collected by such State pursuant to section
454(4). No amount may be certified for collection under this
subsection except the amount of the delinquency under a court
or administrative order for support and upon a showing by the
State that such State has made diligent and reasonable efforts
to collect such amounts utilizing its own collection
mechanisms, and upon an agreement that the State will reimburse
the Secretary of the Treasury for any costs involved in making
the collection. All reimbursements shall be credited to the
appropriation accounts which bore all or part of the costs
involved in making the collections. The Secretary after
consultation with the Secretary of the Treasury may, by
regulation, establish criteria for accepting amounts for
collection and for making certification under this subsection
including imposing such limitations on the frequency of making
such certifications under this subsection.
(c) The Secretary of the Treasury shall from time to time pay
to each State for distribution in accordance with the
provisions of section 457 the amount of each collection made on
behalf of such State pursuant to subsection (b).
(d)(1) Except as provided in paragraph (3), the Secretary
shall not approve the initial and annually updated advance
automated data processing planning document, referred to in
section 454(16), unless he finds that such document, when
implemented, will generally carry out the objectives of the
management system referred to in such subsection, and such
document
(A) provides for the conduct of, and reflects the
results of, requirements analysis studies, which
include consideration of the program mission,
functions, organization, services, constraints, and
current support, of, in, or relating to, such system,
(B) contains a description of the proposed management
system referred to in section 454(16), including a
description of information flows, input data, and
output reports and uses,
(C) sets forth the security and interface
requirements to be employed in such management system,
(D) describes the projected resource requirements for
staff and other needs, and the resources available or
expected to be available to meet such requirements,
(E) contains an implementation plan and backup
procedures to handle possible failures,
(F) contains a summary of proposed improvement of
such management system in terms of qualitative and
quantitative benefits, and
(G) provides such other information as the Secretary
determines under regulation is necessary.
(2)(A) The Secretary shall through the separate
organizational unit established pursuant to subsection (a), on
a continuing basis, review, assess, and inspect the planning,
design, and operation of, management information systems
referred to in section 454(16), with a view to determining
whether, and to what extent, such systems meet and continue to
meet requirements imposed under paragraph (1) and the
conditions specified under section 454(16).
(B) If the Secretary finds with respect to any statewide
management information system referred to in section 454(16)
that there is a failure substantially to comply with criteria,
requirements, and other undertakings, prescribed by the advance
automated data processing planning document theretofore
approved by the Secretary with respect to such system, then the
Secretary shall suspend his approval of such document until
there is no longer any such failure of such system to comply
with such criteria, requirements, and other undertakings so
prescribed.
(3) The Secretary may waive any requirement of paragraph (1)
or any condition specified under section 454(16), and shall
waive the single statewide system requirement under sections
454(16) and 454A, with respect to a State if--
(A) the State demonstrates to the satisfaction of the
Secretary that the State has or can develop an
alternative system or systems that enable the State--
(i) for purposes of section [409(a)(8)]
409(a)(7), to achieve the paternity
establishment percentages (as defined in
section 452(g)(2)) and other performance
measures that may be established by the
Secretary;
(ii) to submit data under section 454(15)(B)
that is complete and reliable;
(iii) to substantially comply with the
requirements of this part; and
(iv) in the case of a request to waive the
single statewide system requirement, to--
(I) meet all functional requirements
of sections 454(16) and 454A;
(II) ensure that calculation of
distributions meets the requirements of
section 457 and accounts for
distributions to children in different
families or in
different States or sub-State
jurisdictions, and for distributions to
other States;
(III) ensure that there is only one
point of contact in the State which
provides seamless case processing for
all interstate case processing and
coordinated, automated intrastate case
management;
(IV) ensure that standardized data
elements, forms, and definitions are
used throughout the State;
(V) complete the alternative system
in no more time than it would take to
complete a single statewide system that
meets such requirement; and
(VI) process child support cases as
quickly,
efficiently, and effectively as such
cases would be processed through a
single statewide system that meets such
requirement;
(B)(i) the waiver meets the criteria of paragraphs
(1), (2), and (3) of section 1115(c); or
(ii) the State provides assurances to the Secretary
that steps will be taken to otherwise improve the
State's child support enforcement program; and
(C) in the case of a request to waive the single
statewide system requirement, the State has submitted
to the Secretary separate estimates of the total cost
of a single statewide system that meets such
requirement, and of any such alternative system or
systems, which shall include estimates of the cost of
developing and completing the system and of operating
and maintaining the system for 5 years, and the
Secretary has agreed with the estimates.
(e) The Secretary shall provide such technical assistance to
States as he determines necessary to assist States to plan,
design, develop, or install and provide for the security of,
the management information systems referred to in section
454(16).
(f) The Secretary shall issue regulations to require that
State agencies administering the child support enforcement
program under this part enforce medical support included as
part of a child support order whenever health care coverage is
available to the noncustodial parent at a reasonable cost. A
State agency administering the program under this part may
enforce medical support against a custodial parent if health
care coverage is available to the custodial parent at a
reasonable cost, notwithstanding any other provision of this
part. Such regulation shall also provide for improved
information exchange between such State agencies and the State
agencies administering the State medicaid programs under title
XIX with respect to the availability of health insurance
coverage. For purposes of this part, the term ``medical
support'' may include health care coverage, such as coverage
under a health insurance plan (including payment of costs of
premiums, co-payments, and deductibles) and payment for medical
expenses incurred on behalf of a child.
(g)(1) A State's program under this part shall be found, for
purposes of section [409(a)(8)] 409(a)(7), not to have complied
substantially with the requirements of this part unless, for
any fiscal year beginning on or after October 1, 1994, its
paternity establishment percentage for such fiscal year is
based on reliable data and (rounded to the nearest whole
percentage point) equals or exceeds--
(A) 90 percent;
(B) for a State with a paternity establishment
percentage of not less than 75 percent but less than 90
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 2 percentage
points;
(C) for a State with a paternity establishment
percentage of not less than 50 percent but less than 75
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 3 percentage
points;
(D) for a State with a paternity establishment
percentage of not less than 45 percent but less than 50
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 4 percentage
points;
(E) for a State with a paternity establishment
percentage of not less than 40 percent but less than 45
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 5 percentage
points; or
(F) for a State with a paternity establishment
percentage of less than 40 percent for such fiscal
year, the paternity establishment percentage of the
State for the immediately preceding fiscal year plus 6
percentage points.
In determining compliance under this section, a State may use
as its paternity establishment percentage either the State's
IV-D paternity establishment percentage (as defined in
paragraph (2)(A)) or the State's statewide paternity
establishment percentage (as defined in paragraph (2)(B)).
(2) For purposes of this section--
(A) the term ``IV-D paternity establishment
percentage'' means, with respect to a State for a
fiscal year, the ratio (expressed as a percentage) that
the total number of children--
(i) who have been born out of wedlock,
(ii)(I) except as provided in the last
sentence of this paragraph, with respect to
whom assistance is being provided under the
State program funded under part A in the fiscal
year or, at the option of the State, as of the
end of such year, or (II) with respect to whom
services are being provided under the State's
plan approved under this part in the fiscal
year or, at the option of the State, as of the
end of such year pursuant to an application
submitted under section 454(4)(A)(ii), and
(iii) the paternity of whom has been
established or acknowledged,
bears to the total number of children born out of
wedlock and (except as provided in such last sentence)
with respect to whom assistance was being provided
under the State program funded under part A as of the
end of the preceding fiscal year or with respect to
whom services were being provided under the State's
plan approved under this part as of the end of the
preceding fiscal year pursuant to an application
submitted under section 454(4)(A)(ii);
(B) the term ``statewide paternity establishment
percentage'' means, with respect to a State for a
fiscal year, the ratio (expressed as a percentage) that
the total number of minor children--
(i) who have been born out of wedlock, and
(ii) the paternity of whom has been
established or acknowledged during the fiscal
year,
bears to the total number of children born out of
wedlock during the preceding fiscal year; and
(C) the term ``reliable data'' means the most recent
data available which are found by the Secretary to be
reliable for purposes of this section.
For purposes of subparagraphs (A) and (B), the total number of
children shall not include any child with respect to whom
assistance is being provided under the State program funded
under part A by reason of the death of a parent unless
paternity is established for such child or any child with
respect to whom an applicant or recipient is found by the State
to qualify for a good cause or other exception to cooperation
pursuant to section 454(29).
(3)(A) The Secretary may modify the requirements of this
subsection to take into account such additional variables as
the Secretary identifies (including the percentage of children
in a State who are born out of wedlock or for whom support has
not been established) that affect the ability of a State to
meet the requirements of this subsection.
(B) The Secretary shall submit an annual report to the
Congress that sets forth the data upon which the paternity
establishment percentages for States for a fiscal year are
based, lists any additional variables the Secretary has
identified under subparagraph (A), and describes State
performance in establishing paternity.
(h) The standards required by subsection (a)(1) shall include
standards establishing time limits governing the period or
periods within which a State must accept and respond to
requests (from States, jurisdictions thereof, or individuals
who apply for services furnished by the State agency under this
part or with respect to whom an assignment pursuant to section
408(a)(3) is in effect) for assistance in establishing and
enforcing support orders, including requests to locate
noncustodial parents, establish paternity, and initiate
proceedings to establish and collect child support awards.
(i) The standards required by subsection (a)(1) shall include
standards establishing time limits governing the period or
periods within which a State must distribute, in accordance
with section 457, amounts collected as child support pursuant
to the State's plan approved under this part.
(j) Out of any money in the Treasury of the United States not
otherwise appropriated, there is hereby appropriated to the
Secretary for each fiscal year an amount equal to 1 percent of
the total amount paid to the Federal Government pursuant to a
plan approved under this part during the immediately preceding
fiscal year (as determined on the basis of the most recent
reliable data available to the Secretary as of the end of the
third calendar quarter following the end of such preceding
fiscal year) or the amount appropriated under this paragraph
for fiscal year 2002, whichever is greater, which shall be
available for use by the Secretary, either directly or through
grants, contracts, or interagency agreements, for--
(1) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs under this part (including
technical assistance concerning State automated systems
required by this part); and
(2) research, demonstration, and special projects of
regional or national significance relating to the
operation of State programs under this part.
The amount appropriated under this subsection shall remain
available until expended.
(k)(1) If the Secretary receives a certification by a State
agency in accordance with the requirements of section 454(31)
that an individual owes arrearages of child support in an
amount exceeding $2,500, the Secretary shall transmit such
certification to the Secretary of State for action (with
respect to denial, revocation, or limitation of passports)
pursuant to paragraph (2).
(2) The Secretary of State shall, upon certification by the
Secretary transmitted under paragraph (1), refuse to issue a
passport to such individual, and may revoke, restrict, or limit
a passport issued previously to such individual.
(3) The Secretary and the Secretary of State shall not be
liable to an individual for any action with respect to a
certification by a State agency under this section.
(l) The Secretary, through the Federal Parent Locator
Service, may aid State agencies providing services under State
programs operated pursuant to this part and financial
institutions doing business in two or more States in reaching
agreements regarding the receipt from such institutions, and
the transfer to the State agencies, of information that may be
provided pursuant to section 466(a)(17)(A)(i), except that any
State that, as of the date of the enactment of this subsection,
is conducting data matches pursuant to section 466(a)(17)(A)(i)
shall have until January 1, 2000, to allow the Secretary to
obtain such information from such institutions that are
operating in the State. For purposes of section 1113(d) of the
Right to Financial Privacy Act of 1978, a disclosure pursuant
to this subsection shall be considered a disclosure pursuant to
a Federal statute.
(m) Comparisons With Insurance Information.--
(1) In general.--The Secretary, through the Federal
Parent Locator Service, may--
(A) compare information concerning
individuals owing past-due support with
information maintained by insurers (or their
agents) concerning insurance claims,
settlements, awards, and payments; and
(B) furnish information resulting from the
data matches to the State agencies responsible
for collecting child support from the
individuals.
(2) Liability.--An insurer (including any agent of an
insurer) shall not be liable under any Federal or State
law to any person for any disclosure provided for under
this subsection, or for any other action taken in good
faith in accordance with this subsection.
(n) The Secretary shall use the authorities otherwise
provided by law to ensure the compliance of the United States
with any multilateral child support convention to which the
United States is a party.
(o) Data Exchange Standards for Improved Interoperability.--
(1) Designation.--The Secretary shall, in
consultation with an interagency work group established
by the Office of Management and Budget and considering
State government perspectives, by rule, designate data
exchange standards to govern, under this part--
(A) necessary categories of information that
State agencies operating programs under State
plans approved under this part are required
under applicable Federal law to electronically
exchange with another State agency; and
(B) Federal reporting and data exchange
required under applicable Federal law.
(2) Requirements.--The data exchange standards
required by paragraph (1) shall, to the extent
practicable--
(A) incorporate a widely accepted, non-
proprietary, searchable, computer-readable
format, such as the eXtensible Markup Language;
(B) contain interoperable standards developed
and maintained by intergovernmental
partnerships, such as the National Information
Exchange Model;
(C) incorporate interoperable standards
developed and maintained by Federal entities
with authority over contracting and financial
assistance;
(D) be consistent with and implement
applicable accounting principles;
(E) be implemented in a manner that is cost-
effective and improves program efficiency and
effectiveness; and
(F) be capable of being continually upgraded
as necessary.
(3) Rule of construction.--Nothing in this subsection
shall be construed to require a change to existing data
exchange standards found to be effective and efficient.
* * * * * * *
SEC. 454A. AUTOMATED DATA PROCESSING.
(a) In General.--In order for a State to meet the
requirements of this section, the State agency administering
the State program under this part shall have in operation a
single statewide automated data processing and information
retrieval system which has the capability to perform the tasks
specified in this section with the frequency and in the manner
required by or under this part.
(b) Program Management.--The automated system required by
this section shall perform such functions as the Secretary may
specify relating to management of the State program under this
part, including--
(1) controlling and accounting for use of Federal,
State, and local funds in carrying out the program; and
(2) maintaining the data necessary to meet Federal
reporting requirements under this part on a timely
basis.
(c) Calculation of Performance Indicators.--In order to
enable the Secretary to determine the incentive payments and
penalty adjustments required by sections 452(g) and 458, the
State agency shall--
(1) use the automated system--
(A) to maintain the requisite data on State
performance with respect to paternity
establishment and child support enforcement in
the State; and
(B) to calculate the paternity establishment
percentage for the State for each fiscal year;
and
(2) have in place systems controls to ensure the com-
pleteness and reliability of, and ready access to, the
data described in paragraph (1)(A), and the accuracy of
the calculations described in paragraph (1)(B).
(d) Information Integrity and Security.--The State agency
shall have in effect safeguards on the integrity, accuracy, and
completeness of, access to, and use of data in the automated
system required by this section, which shall include the
following (in addition to such other safeguards as the
Secretary may specify in regulations):
(1) Policies restricting access.--Written policies
concerning access to data by State agency personnel,
and sharing of data with other persons, which--
(A) permit access to and use of data only to
the extent necessary to carry out the State
program under this part; and
(B) specify the data which may be used for
particular program purposes, and the personnel
permitted access to such data.
(2) Systems controls.--Systems controls (such as
passwords or blocking of fields) to ensure strict
adherence to the policies described in paragraph (1).
(3) Monitoring of access.--Routine monitoring of
access to and use of the automated system, through
methods such as audit trails and feedback mechanisms,
to guard against and promptly identify unauthorized
access or use.
(4) Training and information.--Procedures to ensure
that all personnel (including State and local agency
staff and contractors) who may have access to or be
required to use confidential program data are informed
of applicable requirements and penalties (including
those in section 6103 of the Internal Revenue Code of
1986), and are adequately trained in security
procedures.
(5) Penalties.--Administrative penalties (up to and
including dismissal from employment) for unauthorized
access to, or disclosure or use of, confidential data.
(e) State Case Registry.--
(1) Contents.--The automated system required by this
section shall include a registry (which shall be known
as the ``State case registry'') that contains records
with respect to--
(A) each case in which services are being
provided by the State agency under the State
plan approved under this part; and
(B) each support order established or
modified in the State on or after October 1,
1998.
(2) Linking of local registries.--The State case
registry may be established by linking local case
registries of support orders through an automated
information network, subject to this section.
(3) Use of standardized data elements.--Such records
shall use standardized data elements for both parents
(such as names, social security numbers and other
uniform identification numbers, dates of birth, and
case identification numbers), and contain such other
information (such as on case status) as the Secretary
may require.
(4) Payment records.--Each case record in the State
case registry with respect to which services are being
provided under the State plan approved under this part
and with respect to which a support order has been
established shall include a record of--
(A) the amount of monthly (or other periodic)
support owed under the order, and other amounts
(including arrearages, interest or late payment
penalties, and fees) due or overdue under the
order;
(B) any amount described in subparagraph (A)
that has been collected;
(C) the distribution of such collected
amounts;
(D) the birth date and, beginning not later
than October 1, 1999, the social security
number, of any child for whom the order
requires the provision of support; and
(E) the amount of any lien imposed with
respect to the order pursuant to section
466(a)(4).
(5) Updating and monitoring.--The State agency
operating the automated system required by this section
shall promptly establish and update, maintain, and
regularly monitor, case records in the State case
registry with respect to which services are being
provided under the State plan approved under this part,
on the basis of--
(A) information on administrative actions and
administrative and judicial proceedings and
orders relating to paternity and support;
(B) information obtained from comparison with
Federal, State, or local sources of
information;
(C) information on support collections and
distributions; and
(D) any other relevant information.
(f) Information Comparisons and Other Disclosures of
Information.--The State shall use the automated system required
by this section to extract information from (at such times, and
in such standardized format or formats, as may be required by
the Secretary), to share and compare information with, and to
receive information from, other data bases and information
comparison services, in order to obtain (or provide)
information necessary to enable the State agency (or the
Secretary or other State or Federal agencies) to carry out this
part, subject to section 6103 of the Internal Revenue Code of
1986. Such information comparison activities shall include the
following:
(1) Federal case registry of child support orders.--
Furnishing to the Federal Case Registry of Child
Support Orders established under section 453(h) (and
update as necessary, with information including notice
of expiration of orders) the minimum amount of
information on child support cases recorded in the
State case registry that is necessary to operate the
registry (as specified by the Secretary in
regulations).
(2) Federal parent locator service.--Exchanging
information with the Federal Parent Locator Service for
the purposes specified in section 453.
(3) Temporary family assistance and medicaid
agencies.--Exchanging information with State agencies
(of the State and of other States) administering
programs funded under part A, programs operated under a
State plan approved under title XIX, and other programs
designated by the Secretary, as necessary to perform
State agency responsibilities under this part and under
such programs.
(4) Intrastate and interstate information
comparisons.--Exchanging information with other
agencies of the State, agencies of other States, and
interstate information networks, as necessary and
appropriate to carry out (or assist other States to
carry out) the purposes of this part.
[(5) Private industry councils receiving welfare-to-
work grants.--Disclosing to a private industry council
(as defined in section 403(a)(5)(D)(ii)) to which funds
are provided under section 403(a)(5) the names,
addresses, telephone numbers, and identifying case
number information in the State program funded under
part A, of noncustodial parents residing in the service
delivery area of the private industry council, for the
purpose of identifying and contacting noncustodial
parents regarding participation in the program under
section 403(a)(5).]
(g) Collection and Distribution of Support Payments.--
(1) In general.--The State shall use the automated
system required by this section to assist and
facilitate the collection and disbursement of support
payments through the State disbursement unit operated
under section 454B, through the performance of
functions, including, at a minimum--
(A) transmission of orders and notices to
employers (and other debtors) for the
withholding of income--
(i) within 2 business days after
receipt of notice of, and the income
source subject to, such withholding
from a court, another State, an
employer, the Federal Parent Locator
Service, or another source recognized
by the State;
(ii) using uniform formats prescribed
by the Secretary; and
(iii) at the option of the employer,
using the electronic transmission
methods prescribed by the Secretary;
(B) ongoing monitoring to promptly identify
failures to make timely payment of support; and
(C) automatic use of enforcement procedures
(including procedures authorized pursuant to
section 466(c)) if payments are not timely
made.
(2) Business day defined.--As used in paragraph (1),
the term ``business day'' means a day on which State
offices are open for regular business.
(h) Expedited Administrative Procedures.--The automated
system required by this section shall be used, to the maximum
extent feasible, to implement the expedited administrative
procedures required by section 466(c).
* * * * * * *
PART E--FEDERAL PAYMENTS FOR FOSTER CARE, PREVENTION, AND PERMANENCY
* * * * * * *
STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE
Sec. 471. (a) In order for a State to be eligible for
payments under this part, it shall have a plan approved by the
Secretary which--
(1) provides for foster care maintenance payments in
accordance with section 472 and for adoption assistance
in accordance with section 473;
(2) provides that the State agency responsible for
administering the program authorized by subpart 1 of
part B of this title shall administer, or supervise the
administration of, the program authorized by this part;
(3) provides that the plan shall be in effect in all
political subdivisions of the State, and, if
administered by them, be mandatory upon them;
(4) provides that the State shall assure that the
programs at the local level assisted under this part
will be coordinated with the programs at the State or
local level assisted under parts A and B of this title,
under subtitle 1 of title XX of this Act, and under any
other appropriate provision of Federal law;
(5) provides that the State will, in the
administration of its programs under this part, use
such methods relating to the establishment and
maintenance of personnel standards on a merit basis as
are found by the Secretary to be necessary for the
proper and efficient operation of the programs, except
that the Secretary shall exercise no authority with
respect to the selection, tenure of office, or
compensation of any individual employed in accordance
with such methods;
(6) provides that the State agency referred to in
paragraph (2) (hereinafter in this part referred to as
the ``State agency'') will make such reports, in such
form and containing such information as the Secretary
may from time to time require, and comply with such
provisions as the Secretary may from time to time find
necessary to assure the correctness and verification of
such reports;
(7) provides that the State agency will monitor and
conduct periodic evaluations of activities carried out
under this part;
(8) subject to subsection (c), provides safeguards
which restrict the use of or disclosure of information
concerning individuals assisted under the State plan to
purposes directly connected with (A) the administration
of the plan of the State approved under this part, the
plan or program of the State under part A, B, or D of
this title or under title I, V, X, XIV, XVI (as in
effect in Puerto Rico, Guam, and the Virgin Islands),
XIX, or XX, the program established by title II, or the
supplemental security income program established by
title XVI, (B) any investigation, prosecution, or
criminal or civil proceeding, conducted in connection
with the administration of any such plan or program,
(C) the administration of any other Federal or
federally assisted program which provides assistance,
in cash or in kind, or services, directly to
individuals on the basis of need, (D) any audit or
similar activity conducted in connection with the
administration of any such plan or program by any
governmental agency which is authorized by law to
conduct such audit or activity, and (E) reporting and
providing information pursuant to paragraph (9) to
appropriate authorities with respect to known or
suspected child abuse or neglect; and the safeguards so
provided shall prohibit disclosure, to any committee or
legislative body (other than an agency referred to in
clause (D) with respect to an activity referred to in
such clause), of any information which identifies by
name or address any such applicant or recipient; except
that nothing contained herein shall preclude a State
from providing standards which restrict disclosures to
purposes more limited than those specified herein, or
which, in the case of adoptions, prevent disclosure
entirely;
(9) provides that the State agency will--
(A) report to an appropriate agency or
official, known or suspected instances of
physical or mental injury, sexual abuse or
exploitation, or negligent treatment or
maltreatment of a child receiving aid under
part B or this part under circumstances which
indicate that the child's health or welfare is
threatened thereby;
(B) provide such information with respect to
a situation described in subparagraph (A) as
the State agency may have; and
(C) not later than--
(i) 1 year after the date of
enactment of this subparagraph,
demonstrate to the Secretary that the
State agency has developed, in
consultation with State and local law
enforcement, juvenile justice systems,
health care providers, education
agencies, and organizations with
experience in dealing with at-risk
children and youth, policies and
procedures (including relevant training
for caseworkers) for identifying,
documenting in agency records, and
determining appropriate services with
respect to--
(I) any child or youth over
whom the State agency has
responsibility for placement,
care, or supervision and who
the State has reasonable cause
to believe is, or is at risk of
being, a sex trafficking victim
(including children for whom a
State child welfare agency has
an open case file but who have
not been removed from the home,
children who have run away from
foster care and who have not
attained 18 years of age or
such older age as the State has
elected under section 475(8) of
this Act, and youth who are not
in foster care but are
receiving services under
section 477 of this Act); and
(II) at the option of the
State, any individual who has
not attained 26 years of age,
without regard to whether the
individual is or was in foster
care under the responsibility
of the State; and
(ii) 2 years after such date of
enactment, demonstrate to the Secretary
that the State agency is implementing
the policies and procedures referred to
in clause (i).
(10) provides--
(A) for the establishment or designation of a
State authority or authorities that shall be
responsible for establishing and maintaining
standards for foster family homes and child
care institutions which are reasonably in
accord with recommended standards of national
organizations concerned with standards for the
institutions or homes, including standards
related to admission policies, safety,
sanitation, and protection of civil rights, and
which shall permit use of the reasonable and
prudent parenting standard;
(B) that the standards established pursuant
to subparagraph (A) shall be applied by the
State to any foster family home or child care
institution receiving funds under this part or
part B and shall require, as a condition of
each contract entered into by a child care
institution to provide foster care, the
presence on-site of at least 1 official who,
with respect to any child placed at the child
care institution, is designated to be the
caregiver who is authorized to apply the
reasonable and prudent parent standard to
decisions involving the participation of the
child in age or developmentally-appropriate
activities, and who is provided with training
in how to use and apply the reasonable and
prudent parent standard in the same manner as
prospective foster parents are provided the
training pursuant to paragraph (24);
(C) that the standards established pursuant
to subparagraph (A) shall include policies
related to the liability of foster parents and
private entities under contract by the State
involving the application of the reasonable and
prudent parent standard, to ensure appropriate
liability for caregivers when a child
participates in an approved activity and the
caregiver approving the activity acts in
accordance with the reasonable and prudent
parent standard; and
(D) that a waiver of any standards
established pursuant to subparagraph (A) may be
made only on a case-by-case basis for nonsafety
standards (as determined by the State) in
relative foster family homes for specific
children in care;
(11) provides for periodic review of the standards
referred to in the preceding paragraph and amounts paid
as foster care maintenance payments and adoption
assistance to assure their continuing appropriateness;
(12) provides for granting an opportunity for a fair
hearing before the State agency to any individual whose
claim for benefits available pursuant to this part is
denied or is not acted upon with reasonable promptness;
(13) provides that the State shall arrange for a
periodic and independently conducted audit of the
programs assisted under this part and part B of this
title, which shall be conducted no less frequently than
once every three years;
(14) provides (A) specific goals (which shall be
established by State law on or before October 1, 1982)
for each fiscal year (commencing with the fiscal year
which begins on October 1, 1983) as to the maximum
number of children (in absolute numbers or as a
percentage of all children in foster care with respect
to whom assistance under the plan is provided during
such year) who, at any time during such year, will
remain in foster care after having been in such care
for a period in excess of twenty-four months, and (B) a
description of the steps which will be taken by the
State to achieve such goals;
(15) provides that--
(A) in determining reasonable efforts to be
made with respect to a child, as described in
this paragraph, and in making such reasonable
efforts, the child's health and safety shall be
the paramount concern;
(B) except as provided in subparagraph (D),
reasonable efforts shall be made to preserve
and reunify
families--
(i) prior to the placement of a child
in foster care, to prevent or eliminate
the need for removing the child from
the child's home; and
(ii) to make it possible for a child
to safely return to the child's home;
(C) if continuation of reasonable efforts of
the type described in subparagraph (B) is
determined to be inconsistent with the
permanency plan for the child, reasonable
efforts shall be made to place the child in a
timely manner in accordance with the permanency
plan (including, if appropriate, through an
interstate placement), and to complete whatever
steps are necessary to finalize the permanent
placement of the child;
(D) reasonable efforts of the type described
in subparagraph (B) shall not be required to be
made with respect to a parent of a child if a
court of competent jurisdiction has determined
that--
(i) the parent has subjected the
child to aggravated circumstances (as
defined in State law, which definition
may include but need not be limited to
abandonment, torture, chronic abuse,
and sexual abuse);
(ii) the parent has--
(I) committed murder (which
would have been an offense
under section 1111(a) of title
18, United States Code, if the
offense had occurred in the
special maritime or territorial
jurisdiction of the United
States) of another child of the
parent;
(II) committed voluntary
manslaughter (which would have
been an offense under section
1112(a) of title 18, United
States Code, if the offense had
occurred in the special
maritime or territorial
jurisdiction of the United
States) of another child of the
parent;
(III) aided or abetted,
attempted, conspired, or
solicited to commit such a
murder or such a voluntary
manslaughter; or
(IV) committed a felony
assault that results in serious
bodily injury to the child or
another child of the parent; or
(iii) the parental rights of the
parent to a sibling have been
terminated involuntarily;
(E) if reasonable efforts of the type
described in subparagraph (B) are not made with
respect to a child as a result of a
determination made by a court of competent
jurisdiction in accordance with subparagraph
(D)--
(i) a permanency hearing (as
described in section 475(5)(C)), which
considers in-State and out-of-State
permanent placement options for the
child, shall be held for the child
within 30 days after the determination;
and
(ii) reasonable efforts shall be made
to place the child in a timely manner
in accordance with the permanency plan,
and to complete whatever steps are
necessary to finalize the permanent
placement of the child; and
(F) reasonable efforts to place a child for
adoption or with a legal guardian, including
identifying appropriate in-State and out-of-
State placements may be made concurrently with
reasonable efforts of the type described in
subparagraph (B);
(16) provides for the development of a case plan (as
defined in section 475(1) and in accordance with the
requirements of section 475A) for each child receiving
foster care maintenance payments under the State plan
and provides for a case review system which meets the
requirements described in sections 475(5) and 475A with
respect to each such child;
(17) provides that, where appropriate, all steps will
be taken, including cooperative efforts with the State
agencies administering the program funded under part A
and plan approved under part D, to secure an assignment
to the State of any rights to support on behalf of each
child receiving foster care maintenance payments under
this part;
(18) not later than January 1, 1997, provides that
neither the State nor any other entity in the State
that receives funds from the Federal Government and is
involved in adoption or foster care placements may--
(A) deny to any person the opportunity to
become an adoptive or a foster parent, on the
basis of the race, color, or national origin of
the person, or of the child, involved; or
(B) delay or deny the placement of a child
for adoption or into foster care, on the basis
of the race, color, or national origin of the
adoptive or foster parent, or the child,
involved;
(19) provides that the State shall consider giving
preference to an adult relative over a non-related
caregiver when determining a placement for a child,
provided that the relative caregiver meets all relevant
State child protection standards;
(20)(A) provides procedures for criminal records
checks, including fingerprint-based checks of national
crime information databases (as defined in section
534(e)(3)(A) of title 28, United States Code), for any
prospective foster or adoptive parent before the foster
or adoptive parent may be finally approved for
placement of a child regardless of whether foster care
maintenance payments or adoption assistance payments
are to be made on behalf of the child under the State
plan under this part, including procedures requiring
that--
(i) in any case involving a child on whose
behalf such payments are to be so made in which
a record check reveals a felony conviction for
child abuse or neglect, for spousal abuse, for
a crime against children (including child
pornography), or for a crime involving
violence, including rape, sexual assault, or
homicide, but not including other physical
assault or battery, if a State finds that a
court of competent jurisdiction has determined
that the felony was committed at any time, such
final approval shall not be granted; and
(ii) in any case involving a child on whose
behalf such payments are to be so made in which
a record check reveals a felony conviction for
physical assault, battery, or a drug-related
offense, if a State finds that a court of
competent jurisdiction has determined that the
felony was committed within the past 5 years,
such final approval shall not be granted; and
(B) provides that the State shall--
(i) check any child abuse and neglect
registry maintained by the State for
information on any prospective foster or
adoptive parent and on any other adult living
in the home of such a prospective parent, and
request any other State in which any such
prospective parent or other adult has resided
in the preceding 5 years, to enable the State
to check any child abuse and neglect registry
maintained by such other State for such
information, before the prospective foster or
adoptive parent may be finally approved for
placement of a child, regardless of whether
foster care maintenance payments or adoption
assistance payments are to be made on behalf of
the child under the State plan under this part;
(ii) comply with any request described in
clause (i) that is received from another State;
and
(iii) have in place safeguards to prevent the
unauthorized disclosure of information in any
child abuse and neglect registry maintained by
the State, and to prevent any such information
obtained pursuant to this subparagraph from
being used for a purpose other than the
conducting of background checks in foster or
adoptive placement cases; and
(C) provides procedures for criminal records checks,
including fingerprint-based checks of national crime
information databases (as defined in section
534(e)(3)(A) of title 28, United States Code), on any
relative guardian, and for checks described in
subparagraph (B) of this paragraph on any relative
guardian and any other adult living in the home of any
relative guardian, before the relative guardian may
receive kinship guardianship assistance payments on
behalf of the child under the State plan under this
part;
(21) provides for health insurance coverage
(including, at State option, through the program under
the State plan approved under title XIX) for any child
who has been determined to be a child with special
needs, for whom there is in effect an adoption
assistance agreement (other than an agreement under
this part) between the State and an adoptive parent or
parents, and who the State has determined cannot be
placed with an adoptive parent or parents without
medical assistance because such child has special needs
for medical, mental health, or rehabilitative care, and
that with respect to the provision of such health
insurance coverage--
(A) such coverage may be provided through 1
or more State medical assistance programs;
(B) the State, in providing such coverage,
shall ensure that the medical benefits,
including mental health benefits, provided are
of the same type and kind as those that would
be provided for children by the State under
title XIX;
(C) in the event that the State provides such
coverage through a State medical assistance
program other than the program under title XIX,
and the State exceeds its funding for services
under such other program, any such child shall
be deemed to be receiving aid or assistance
under the State plan under this part for
purposes of section 1902(a)(10)(A)(i)(I); and
(D) in determining cost-sharing requirements,
the State shall take into consideration the
circumstances of the adopting parent or parents
and the needs of the child being adopted
consistent, to the extent coverage is provided
through a State medical assistance program,
with the rules under such program;
(22) provides that, not later than January 1, 1999,
the State shall develop and implement standards to
ensure that children in foster care placements in
public or private agencies are provided quality
services that protect the safety and health of the
children;
(23) provides that the State shall not--
(A) deny or delay the placement of a child
for adoption when an approved family is
available outside of the jurisdiction with
responsibility for handling the case of the
child; or
(B) fail to grant an opportunity for a fair
hearing, as described in paragraph (12), to an
individual whose allegation of a violation of
subparagraph (A) of this paragraph is denied by
the State or not acted upon by the State with
reasonable promptness;
(24) includes a certification that, before a child in
foster care under the responsibility of the State is
placed with prospective foster parents, the prospective
foster parents will be prepared adequately with the
appropriate knowledge and skills to provide for the
needs of the child, that the preparation will be
continued, as necessary, after the placement of the
child, and that the preparation shall include knowledge
and skills relating to the reasonable and prudent
parent standard for the participation of the child in
age or developmentally-appropriate activities,
including knowledge and skills relating to the
developmental stages of the cognitive, emotional,
physical, and behavioral capacities of a child, and
knowledge and skills relating to applying the standard
to decisions such as whether to allow the child to
engage in social, extracurricular, enrichment,
cultural, and social activities, including sports,
field trips, and overnight activities lasting 1 or more
days, and to decisions involving the signing of
permission slips and arranging of transportation for
the child to and from extracurricular, enrichment, and
social activities;
(25) provide that the State shall have in effect
procedures for the orderly and timely interstate
placement of children; and procedures implemented in
accordance with an interstate compact, if incorporating
with the procedures prescribed by paragraph (26), shall
be considered to satisfy the requirement of this
paragraph;
(26) provides that--
(A)(i) within 60 days after the State
receives from another State a request to
conduct a study of a home environment for
purposes of assessing the safety and
suitability of placing a child in the home, the
State shall, directly or by contract--
(I) conduct and complete the study;
and
(II) return to the other State a
report on the results of the study,
which shall address the extent to which
placement in the home would meet the
needs of the child; and
(ii) in the case of a home study begun on or
before September 30, 2008, if the State fails
to comply with clause (i) within the 60-day
period as a result of circumstances beyond the
control of the State (such as a failure by a
Federal agency to provide the results of a
background check, or the failure by any entity
to provide completed medical forms, requested
by the State at least 45 days before the end of
the 60-day period), the State shall have 75
days to comply with clause (i) if the State
documents the circumstances involved and
certifies that completing the home study is in
the best interests of the child; except that
(iii) this subparagraph shall not be
construed to require the State to have
completed, within the applicable period, the
parts of the home study involving the education
and training of the prospective foster or
adoptive parents;
(B) the State shall treat any report
described in subparagraph (A) that is received
from another State or an Indian tribe (or from
a private agency under contract with another
State) as meeting any requirements imposed by
the State for the completion of a home study
before placing a child in the home, unless,
within 14 days after receipt of the report, the
State determines, based on grounds that are
specific to the content of the report, that
making a decision in reliance on the report
would be contrary to the welfare of the child;
and
(C) the State shall not impose any
restriction on the ability of a State agency
administering, or supervising the
administration of, a State program operated
under a State plan approved under this part to
contract with a private agency for the conduct
of a home study described in subparagraph (A);
(27) provides that, with respect to any child in
foster care under the responsibility of the State under
this part or part B and without regard to whether
foster care maintenance payments are made under section
472 on behalf of the child, the State has in effect
procedures for verifying the citizenship or immigration
status of the child;
(28) at the option of the State, provides for the
State to enter into kinship guardianship assistance
agreements to provide kinship guardianship assistance
payments on behalf of children to grandparents and
other relatives who have assumed legal guardianship of
the children for whom they have cared as foster parents
and for whom they have committed to care on a permanent
basis, as provided in section 473(d);
(29) provides that, within 30 days after the removal
of a child from the custody of the parent or parents of
the child, the State shall exercise due diligence to
identify and provide notice to the following relatives:
all adult grandparents, all parents of a sibling of the
child, where such parent has legal custody of such
sibling, and other adult relatives of the child
(including any other adult relatives suggested by the
parents), subject to exceptions due to family or
domestic violence, that--
(A) specifies that the child has been or is
being removed from the custody of the parent or
parents of the child;
(B) explains the options the relative has
under Federal, State, and local law to
participate in the care and placement of the
child, including any options that may be lost
by failing to respond to the notice;
(C) describes the requirements under
paragraph (10) of this subsection to become a
foster family home and the additional services
and supports that are available for children
placed in such a home; and
(D) if the State has elected the option to
make kinship guardianship assistance payments
under paragraph (28) of this subsection,
describes how the relative guardian of the
child may subsequently enter into an agreement
with the State under section 473(d) to receive
the payments;
(30) provides assurances that each child who has
attained the minimum age for compulsory school
attendance under State law and with respect to whom
there is eligibility for a payment under the State plan
is a full-time elementary or secondary school student
or has completed secondary school, and for purposes of
this paragraph, the term ``elementary or secondary
school student'' means, with respect to a child, that
the child is--
(A) enrolled (or in the process of enrolling)
in an institution which provides elementary or
secondary education, as determined under the
law of the State or other jurisdiction in which
the institution is located;
(B) instructed in elementary or secondary
education at home in accordance with a home
school law of the State or other jurisdiction
in which the home is located;
(C) in an independent study elementary or
secondary education program in accordance with
the law of the State or other jurisdiction in
which the program is located, which is
administered by the local school or school
district; or
(D) incapable of attending school on a full-
time basis due to the medical condition of the
child, which incapability is supported by
regularly updated information in the case plan
of the child;
(31) provides that reasonable efforts shall be made--
(A) to place siblings removed from their home
in the same foster care, kinship guardianship,
or adoptive placement, unless the State
documents that such a joint placement would be
contrary to the safety or well-being of any of
the siblings; and
(B) in the case of siblings removed from
their home who are not so jointly placed, to
provide for frequent visitation or other
ongoing interaction between the siblings,
unless that State documents that frequent
visitation or other ongoing interaction would
be contrary to the safety or well-being of any
of the siblings;
(32) provides that the State will negotiate in good
faith with any Indian tribe, tribal organization or
tribal consortium in the State that requests to develop
an agreement with the State to administer all or part
of the program under this part on behalf of Indian
children who are under the authority of the tribe,
organization, or consortium, including foster care
maintenance payments on behalf of children who are
placed in State or tribally licensed foster family
homes, adoption assistance payments, and, if the State
has elected to provide such payments, kinship
guardianship assistance payments under section 473(d),
and tribal access to resources for administration,
training, and data collection under this part;
(33) provides that the State will inform any
individual who is adopting, or whom the State is made
aware is considering adopting, a child who is in foster
care under the responsibility of the State of the
potential eligibility of the individual for a Federal
tax credit under section 23 of the Internal Revenue
Code of 1986;
(34) provides that, for each child or youth described
in paragraph (9)(C)(i)(I), the State agency shall--
(A) not later than 2 years after the date of
the enactment of this paragraph, report
immediately, and in no case later than 24 hours
after receiving information on children or
youth who have been identified as being a sex
trafficking victim, to the law enforcement
authorities; and
(B) not later than 3 years after such date of
enactment and annually thereafter, report to
the Secretary the total number of children and
youth who are sex trafficking victims;
(35) provides that--
(A) not later than 1 year after the date of
the enactment of this paragraph, the State
shall develop and implement specific protocols
for--
(i) expeditiously locating any child
missing from foster care;
(ii) determining the primary factors
that contributed to the child's running
away or otherwise being absent from
care, and to the extent possible and
appropriate, responding to those
factors in current and subsequent
placements;
(iii) determining the child's
experiences while absent from care,
including screening the child to
determine if the child is a possible
sex trafficking victim (as defined in
section 475(9)(A)); and
(iv) reporting such related
information as required by the
Secretary; and
(B) not later than 2 years after such date of
enactment, for each child and youth described
in paragraph (9)(C)(i)(I) of this subsection,
the State agency shall report immediately, and
in no case later than 24 hours after receiving,
information on missing or abducted children or
youth to the law enforcement authorities for
entry into the National Crime Information
Center (NCIC) database of the Federal Bureau of
Investigation, established pursuant to section
534 of title 28, United States Code, and to the
National Center for Missing and Exploited
Children;
(36) provides that, not later than April 1, 2019, the
State shall submit to the Secretary information
addressing--
(A) whether the State licensing standards are
in accord with model standards identified by
the Secretary, and if not, the reason for the
specific deviation and a description as to why
having a standard that is reasonably in accord
with the corresponding national model standards
is not appropriate for the State;
(B) whether the State has elected to waive
standards established in 471(a)(10)(A) for
relative foster family homes (pursuant to
waiver authority provided by 471(a)(10)(D)), a
description of which standards the State most
commonly waives, and if the State has not
elected to waive the standards, the reason for
not waiving these standards;
(C) if the State has elected to waive
standards specified in subparagraph (B), how
caseworkers are trained to use the waiver
authority and whether the State has developed a
process or provided tools to assist caseworkers
in waiving nonsafety standards per the
authority provided in 471(a)(10)(D) to quickly
place children with relatives; and
(D) a description of the steps the State is
taking to improve caseworker training or the
process, if any; and
(b) The Secretary shall approve any plan which complies with
the provisions of subsection (a) of this section.
(c) Use of Child Welfare Records in State Court
Proceedings.--Subsection (a)(8) shall not be construed to limit
the flexibility of a State in determining State policies
relating to public access to court proceedings to determine
child abuse and neglect or other court hearings held pursuant
to part B or this part, except that such policies shall, at a
minimum, ensure the safety and well-being of the child,
parents, and family.
(d) Annual Reports by the Secretary on Number of Children and
Youth Reported by States To Be Sex Trafficking Victims.--Not
later than 4 years after the date of the enactment of this
subsection and annually thereafter, the Secretary shall report
to the Congress and make available to the public on the
Internet website of the Department of Health and Human Services
the number of children and youth reported in accordance with
subsection (a)(34)(B) of this section to be sex trafficking
victims (as defined in section 475(9)(A)).
[Effective on October 1, 2018, section 50711(a)(2) of division
E of Public Law 115-123 amends section 471 by adding at the end
a new subsection (e). Section 4(b)(3) of H.R. 5861 (as
reported) provides for an amendment to section 471(e)(7)(B)(i)
of the Social Security Act ``as in effect pursuant to the
amendment made by section 50711(a)(2) of division E of the
Bipartisan Budget Act of 2018 (Public Law 115-123)'' as
follow:]
(e) Prevention and Family Services and Programs.--
(1) * * *
* * * * * * *
(7) Maintenance of effort for state foster care
prevention expenditures.--
(A) In general.--If a State elects to provide
services and programs specified in paragraph
(1) for a fiscal year, the State foster care
prevention expenditures for the fiscal year
shall not be less than the amount of the
expenditures for fiscal year 2014 (or, at the
option of a State described in subparagraph
(E), fiscal year 2015 or fiscal year 2016
(whichever the State elects)).
(B) State foster care prevention
expenditures.--The term ``State foster care
prevention expenditures'' means the following:
(i) [TANF] JOBS; iv-b; ssbg.--State
expenditures for foster care prevention
services and activities under the State
program funded under part A (including
from amounts made available by the
Federal Government), under the State
plan developed under part B (including
any such amounts), or under the Social
Services Block Grant Programs under
subtitle A of title XX (including any
such amounts).
(ii) Other state programs.--State
expenditures for foster care prevention
services and activities under any State
program that is not described in clause
(i) (other than any State expenditures
for foster care prevention services and
activities under the State program
under this part (including under a
waiver of the program)).
(C) State expenditures.--The term ``State
expenditures'' means all State or local funds
that are expended by the State or a local
agency including State or local funds that are
matched or reimbursed by the Federal Government
and State or local funds that are not matched
or reimbursed by the Federal Government.
(D) Determination of prevention services and
activities.--The Secretary shall require each
State that elects to provide services and
programs specified in paragraph (1) to report
the expenditures specified in subparagraph (B)
for fiscal year 2014 and for such fiscal years
thereafter as are necessary to determine
whether the State is complying with the
maintenance of effort requirement in
subparagraph (A). The Secretary shall specify
the specific services and activities under each
program referred to in subparagraph (B) that
are ``prevention services and activities'' for
purposes of the reports.
(E) State described.--For purposes of
subparagraph (A), a State is described in this
subparagraph if the population of children in
the State in 2014 was less than 200,000 (as
determined by the United States Census Bureau).
* * * * * * *
TITLE XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE
SIMPLIFICATION
Part A--General Provisions
* * * * * * *
SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, GUAM,
AND AMERICAN SAMOA; LIMITATION ON TOTAL PAYMENTS.
(a) Limitation on Total Payments to Each Territory.--
(1) In general.--Notwithstanding any other provision
of this Act (except for paragraph (2) of this
subsection), the total amount certified by the
Secretary of Health and Human Services under titles I,
X, XIV, and XVI, under parts A and E of title IV, and
under subsection (b) of this section, for payment to
any territory for a fiscal year shall not exceed the
ceiling amount for the territory for the fiscal year.
(2) Certain payments disregarded.--Paragraph (1) of
this subsection shall be applied without regard to any
payment made under section 403(a)(2), [403(a)(4),
403(a)(5), 406,] or 413(f).
(b) Entitlement to Matching Grant.--
(1) In general.--Each territory shall be entitled to
receive from the Secretary for each fiscal year a grant
in an amount equal to 75 percent of the amount (if any)
by which--
(A) the total expenditures of the territory
during the fiscal year under the territory
programs funded under parts A and E of title
IV, including any amount paid to the State
under part A of title IV that is transferred in
accordance with section 404(d) and expended
under the program to which transferred; exceeds
(B) the sum of--
(i) the amount of the family
assistance grant payable to the
territory without regard to section
409; and
(ii) the total amount expended by the
territory during fiscal year 1995
pursuant to parts A and F of title IV
(as so in effect), other than for child
care.
(2) Appropriation.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated for each of fiscal years [2017 and
2018] 2019 through 2023, such sums as are necessary for
grants under this paragraph.
(c) Definitions.--As used in this section:
(1) Territory.--The term ``territory'' means Puerto
Rico, the Virgin Islands, Guam, and American Samoa.
(2) Ceiling amount.--The term ``ceiling amount''
means, with respect to a territory and a fiscal year,
the mandatory ceiling amount with respect to the
territory, reduced for the fiscal year in accordance
with subsection (e), and reduced by the amount of any
penalty imposed on the territory under any provision of
law specified in subsection (a) during the fiscal year.
(3) Family assistance grant.--The term ``family
assistance grant'' has the meaning given such term by
section 403(a)(1)(B).
(4) Mandatory ceiling amount.--The term ``mandatory
ceiling amount'' means--
(A) $107,255,000 with respect to Puerto Rico;
(B) $4,686,000 with respect to Guam;
(C) $3,554,000 with respect to the Virgin
Islands; and
(D) $1,000,000 with respect to American
Samoa.
(5) Total amount expended by the territory.--The term
``total amount expended by the territory''--
(A) does not include expenditures during the
fiscal year from amounts made available by the
Federal Government; and
(B) when used with respect to fiscal year
1995, also does not include--
(i) expenditures during fiscal year
1995 under subsection (g) or (i) of
section 402 (as in effect on September
30, 1995); or
(ii) any expenditures during fiscal
year 1995 for which the territory (but
for section 1108, as in effect on
September 30, 1995) would have received
reimbursement from the Federal
Government.
(d) Authority To Transfer Funds to Certain Programs.--A
territory to which an amount is paid under subsection (b) of
this section may use the amount in accordance with section
404(d).
(f) Subject to subsection (g) and section 1935(e)(1)(B), the
total amount certified by the Secretary under title XIX with
respect to a fiscal year for payment to--
(1) Puerto Rico shall not exceed (A) $116,500,000 for
fiscal year 1994 and (B) for each succeeding fiscal
year the amount provided in this paragraph for the
preceding fiscal year increased by the percentage
increase in the medical care component of the consumer
price index for all urban consumers (as published by
the Bureau of Labor Statistics) for the twelve-month
period ending in March preceding the beginning of the
fiscal year, rounded to the nearest $100,000;
(2) the Virgin Islands shall not exceed (A)
$3,837,500 for fiscal year 1994, and (B) for each
succeeding fiscal year the amount provided in this
paragraph for the preceding fiscal year increased by
the percentage increase referred to in paragraph
(1)(B), rounded to the nearest $10,000;
(3) Guam shall not exceed (A) $3,685,000 for fiscal
year 1994, and (B) for each succeeding fiscal year the
amount provided in this paragraph for the preceding
fiscal year increased by the percentage increase
referred to in paragraph (1)(B), rounded to the nearest
$10,000;
(4) Northern Mariana Islands shall not exceed (A)
$1,110,000 for fiscal year 1994, and (B) for each
succeeding fiscal year the amount provided in this
paragraph for the preceding fiscal year increased by
the percentage increase referred to in paragraph
(1)(B), rounded to the nearest $10,000; and
(5) American Samoa shall not exceed (A) $2,140,000
for fiscal year 1994, and (B) for each succeeding
fiscal year the amount provided in this paragraph for
the preceding fiscal year increased by the percentage
increase referred to in paragraph (1)(B), rounded to
the nearest $10,000.
(g) Medicaid Payments to Territories for Fiscal Year 1998 and
Thereafter.--
(1) Fiscal year 1998.--With respect to fiscal year
1998, the amounts otherwise determined for Puerto Rico,
the Virgin Islands, Guam, the Northern Mariana Islands,
and American Samoa under subsection (f) for such fiscal
year shall be increased by the following amounts:
(A) For Puerto Rico, $30,000,000.
(B) For the Virgin Islands, $750,000.
(C) For Guam, $750,000.
(D) For the Northern Mariana Islands,
$500,000.
(E) For American Samoa, $500,000.
(2) Fiscal year 1999 and thereafter.--Notwithstanding
subsection (f) and subject to and section 1323(a)(2) of
the Patient Protection and Affordable Care Act
paragraphs (3) and (5), with respect to fiscal year
1999 and any fiscal year thereafter, the total amount
certified by the Secretary under title XIX for payment
to--
(A) Puerto Rico shall not exceed the sum of
the amount provided in this subsection for the
preceding fiscal year increased by the
percentage increase in the medical care
component of the Consumer Price Index for all
urban consumers (as published by the Bureau of
Labor Statistics) for the 12-month period
ending in March preceding the beginning of the
fiscal year, rounded to the nearest $100,000;
(B) the Virgin Islands shall not exceed the
sum of the amount provided in this subsection
for the preceding fiscal year increased by the
percentage increase referred to in subparagraph
(A), rounded to the nearest $10,000;
(C) Guam shall not exceed the sum of the
amount provided in this subsection for the
preceding fiscal year increased by the
percentage increase referred to in subparagraph
(A), rounded to the nearest $10,000;
(D) the Northern Mariana Islands shall not
exceed the sum of the amount provided in this
subsection for the preceding fiscal year
increased by the percentage increase referred
to in subparagraph (A), rounded to the nearest
$10,000; and
(E) American Samoa shall not exceed the sum
of the amount provided in this subsection for
the preceding fiscal year increased by the
percentage increase referred to in subparagraph
(A), rounded to the nearest $10,000.
(3) Fiscal years 2006 and 2007 for certain insular
areas.--The amounts otherwise determined under this
subsection for Puerto Rico, the Virgin Islands, Guam,
the Northern Mariana Islands, and American Samoa for
fiscal year 2006 and fiscal year 2007 shall be
increased by the following amounts:
(A) For Puerto Rico, $12,000,000 for fiscal
year 2006 and $12,000,000 for fiscal year 2007.
(B) For the Virgin Islands, $2,500,000 for
fiscal year 2006 and $5,000,000 for fiscal year
2007.
(C) For Guam, $2,500,000 for fiscal year 2006
and $5,000,000 for fiscal year 2007.
(D) For the Northern Mariana Islands,
$1,000,000 for fiscal year 2006 and $2,000,000
for fiscal year 2007.
(E) For American Samoa, $2,000,000 for fiscal
year 2006 and $4,000,000 for fiscal year 2007.
Such amounts shall not be taken into account in
applying paragraph (2) for fiscal year 2007 but shall
be taken into account in applying such paragraph for
fiscal year 2008 and subsequent fiscal years.
(4) Exclusion of certain expenditures from payment
limits.--With respect to fiscal years beginning with
fiscal year 2009, if Puerto Rico, the Virgin Islands,
Guam, the Northern Mariana Islands, or American Samoa
qualify for a payment under subparagraph (A)(i), (B),
or (F) of section 1903(a)(3) for a calendar quarter of
such fiscal year, and with respect to fiscal years
beginning with fiscal year 2017, if Puerto Rico
qualifies for a payment under section 1903(a)(6) for a
calendar quarter (beginning on or after July 1, 2017)
of such fiscal year, and with respect to fiscal years
beginning with fiscal year 2018, if the Virgin Islands
qualifies for a payment under section 1903(a)(6) for a
calendar quarter (beginning on or after January 1,
2018) of such fiscal year, the payment shall not be
taken into account in applying subsection (f) (as
increased in accordance with paragraphs (1), (2), (3),
and (4) of this subsection) to such commonwealth or
territory for such fiscal year.
(5) Additional increase.--(A) Subject to
subparagraphs (B), (C), (D), and (E), the Secretary
shall increase the amounts otherwise determined under
this subsection for Puerto Rico, the Virgin Islands,
Guam, the Northern Mariana Islands, and American Samoa
(after the application of subsection (f) and the
preceding paragraphs of this subsection) for the period
beginning July 1, 2011, and ending on September 30,
2019, by such amounts that the total additional
payments under title XIX to such territories equals
$6,300,000,000 for such period. The Secretary shall
increase such amounts in proportion to the amounts
applicable to such territories under this subsection
and subsection (f) on the date of enactment of this
paragraph.
(B) The amount of the increase otherwise provided
under subparagraph (A) for Puerto Rico shall be further
increased by $295,900,000.
(C) Subject to subparagraphs (D) and (E), for the
period beginning January 1, 2018, and ending September
30, 2019--
(i) the amount of the increase otherwise
provided under subparagraphs (A) and (B) for
Puerto Rico shall be further increased by
$3,600,000,000; and
(ii) the amount of the increase otherwise
provided under subparagraph (A) for the Virgin
Islands shall be further increased by
$106,931,000.
(D) For the period described in subparagraph (C), the
amount of the increase otherwise provided under
subparagraph (A)--
(i) for Puerto Rico shall be further
increased by $1,200,000,000 if the Secretary
certifies that Puerto Rico has taken reasonable
and appropriate steps during such period, in
accordance with a timeline established by the
Secretary, to--
(I) implement methods, satisfactory
to the Secretary, for the collection
and reporting of reliable data to the
Transformed Medicaid Statistical
Information System (T-MSIS) (or a
successor system); and
(II) demonstrate progress in
establishing a State medicaid fraud
control unit described in section
1903(q); and
(ii) for the Virgin Islands shall be further
increased by $35,644,000 if the Secretary
certifies that the Virgin Islands has taken
reasonable and appropriate steps during such
period, in accordance with a timeline
established by the Secretary, to meet the
conditions for certification specified in
subclauses (I) and (II) of clause (i).
(E) Notwithstanding any other provision of title XIX,
during the period in which the additional funds
provided under subparagraphs (C) and (D) are available
for Puerto Rico and the Virgin Islands, respectively,
with respect to payments from such additional funds for
amounts expended by Puerto Rico and the Virgin Islands
under such title, the Secretary shall increase the
Federal medical assistance percentage or other rate
that would otherwise apply to such payments to 100
percent.
* * * * * * *
VII. DISSENTING VIEWS
DISSENTING VIEWS ON JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES FOR
SUCCESS ACT (H.R. 5861)
Committee Democrats oppose H.R. 5861. This legislation
represents a missed opportunity to help close the skills gap
and help struggling parents get good jobs that will lift their
families out of poverty. The bill makes zero new investments in
education, training, apprenticeships, or career pathways
programs that have been demonstrated to lead to good jobs.
Millions of good jobs are going unfilled now, or will in
the future, because workers lack the skills and supports to
fill them. This bill does not provide a single penny of new
investment in education, job training, or career pathways.
Instead, the bill continues the freeze on Temporary Assistance
for Needy Families (TANF) funding, which the Congressional
Research Services estimates is 35 percent lower, in real terms,
than it was in 1996. On average, states currently spend less
than four percent of TANF funds on education and training. This
bill gives them no reason to change that, since it would not
measure how effective states are at increasing educational
attainment needed for work. The TANF funding gap is not made up
by other programs--formula funding for education and training
provided through the Workforce Investment and Opportunity Act
(WIOA) is currently $700 million below the authorized level,
and fewer than a million Americans received job training or
intensive career services in 2017.
Democrats know that parents in our states and communities
want to make better lives for their children. So, if they're
not taking advantage of good jobs that are available, it's
because they cannot. It is our job to give those parents real
opportunities to get ahead.
Instead of investing in helping families enter the middle
class, the bill classifies nearly all parents and caregivers,
including new moms and grandparents, as ``work-eligible'' and
gives states expanded authority to reduce or eliminate benefits
for the entire family if the adult does not fully comply with
every provision of a plan developed by the state. Also, the
bill's very modest increase in child care funding is paid for
by making TANF cuts in some states, making it a net loss for
those states.
Over 90 percent of families receiving TANF are single-
parent households, and access to quality child care is critical
to help them balance work and parenting. This legislation fails
to even restore the number of child care slots to its 2006
level, and it limits the amount of TANF funding states can use
to pay for quality child care.
Even though over 13 million American children live in
poverty, only 20 percent receive help from TANF. This bill does
not even require states to measure how effectively they are
reducing poverty or helping poor children, let alone develop a
plan to do so.
At our Committee markup, Democrats offered a number of
amendments that would have invested in effective local
workforce development programs, quality child care, assistance
for vulnerable children and grandparents, modernizing and
expanding responsible fatherhood programs, and creating an
emergency reserve fund to prepare for economic downturns. Those
investments were fully paid for by very slightly reducing the
windfall Republicans provided to corporations under their
recent tax bill, which will add $2.3 trillion to our national
debt over the next decade. The Majority refused to allow votes
on the amendments. Democrats also offered amendments to remove
the bill's limits on state child care spending, develop a plan
to eliminate child poverty, target more funding to work, child
care, and family assistance, and measure state effectiveness in
stabilizing families and helping parents get the degrees and
credentials necessary for good jobs.
Particularly at a time when Republicans are working
diligently to cut off basic necessities like food, housing, and
health care for millions of American parents, children,
seniors, and people with disabilities, Committee Democrats
cannot support TANF legislation that gives states more
authority to cut off basic necessities and no additional
resources to help families get ahead.
Richard E. Neal.
Sander M. Levin.
John Lewis.
Mike Thompson.
John B. Larson.
Earl Blumenauer.
Bill Pascrell, Jr.
Joseph Crowley.
Danny K. Davis.
Linda T. Sanchez.
Brian Higgins.
Terri A. Sewell.
Suzan DelBene.
Judy Chu.
ADDITIONAL DISSENTING VIEWS ON JOBS AND OPPORTUNITY WITH BENEFITS AND
SERVICES FOR SUCCESS ACT (H.R. 5861)
In addition to the overall concerns outlined in the
Democratic Dissenting Views that H.R. 5861 neglects to help
struggling parents get good jobs to lift their families out of
poverty, we express deep concerns that this bill: (1) ignores
the needs of children--the primary beneficiaries of TANF; (2)
fails to help vulnerable families with multiple barriers to
employment, including parents with children with chronic health
problems, parents struggling with addiction, returning
citizens, grandparent caregivers, domestic and sexual violence
victims, parents experiencing trauma, teen parents, and
noncustodial fathers; and (3) lacks important safeguard to
protect parents from inappropriate sanctions.
This past April marked the 50th anniversary of the
assassination of Dr. Martin Luther King, Jr. At the time of his
assassination, Dr. King was focusing the civil rights movement
on economic justice and the opportunity gap that exists in this
country. If communities lack quality education, economic
opportunity is limited. If communities lack transportation,
affordable housing, and employers offering good jobs, economic
opportunity is limited. If communities lack substance abuse
services or job training programs economic opportunity is
limited. It is our obligation to help states knock down the
obstacles keeping people from work, not to vilify workers who
have fallen on hard times and who need our help to overcome
barriers.
The needs of children. Aside from an empty promise to
reduce child poverty, this bill ignores the children who are
the primary TANF beneficiaries. Over two-thirds of TANF
recipients are children and most are children under the age of
12, with a very large percent being young children under age 6.
In 2017, only 1.4 million families received income support, and
almost half of TANF cases were child-only. Millions of children
live in poverty and receive nothing from TANF at all. It is
inexcusable that nearly 20 percent of our children are
condemned to grow up in poverty, with one out of every three
Black, Latino, and Native American children living in poverty.
The injustice of high child poverty rates in our nation is
magnified by the tremendous suffering poverty inflicts on our
youth, families, communities, and nation and by the reality
that poverty exacts a greater toll on children of color. These
disparities in early childhood have cumulative negative effects
on lifelong learning, earnings, and health well into adulthood.
New research finds that child poverty costs our economy over $1
trillion dollars each year. Reducing child poverty makes both
moral and economic sense.
Yet H.R. 5861 fails to advance meaningful efforts to reduce
child poverty. Republicans rejected a no-cost amendment to
enact evidence-based policies coordinated at the federal,
state, and local levels to alleviate child poverty. Using this
approach, the United Kingdom reduced their child poverty rate
by 50 percent in a decade. By contrast, during this same time
period, the U.S. child poverty rate increased by over 20
percent.
Republicans also rejected an amendment to reduce child
poverty by incenting states to provide basic assistance levels
and supports to help stabilize struggling families with
children. Research shows that an increase in family income of
as little as $3,000 per year when a child is developing is
associated with a 17 percent increase in the children's future
earnings. However, only one state provides basic assistance
above the level of extreme poverty--or 50 percent of the
Federal poverty level. Approximately half of states provide
basic assistance at or below 25 percent of Federal poverty
level. Further, many states immediately reduce benefits once
parents begin working, pulling the rug out from under them and
contributing to continued instability rather than giving
families the foundation needed to enter and succeed in the
workforce. Encouraging states to invest in assistance levels
that help families work makes common sense and promises to
improve child well-being and reduce child poverty.
The needs of vulnerable families. In addition, H.R. 5861
fails to focus states on helping vulnerable families with
significant barriers to employment, such as parents caring for
children with chronic health conditions, parents struggling
with addiction, returning citizens, grandparent caregivers,
domestic and sexual violence victims, parents experiencing
trauma, teen parents, and noncustodial fathers.
Child health is a significant barrier to employment for
poor, single mothers. For example, children in poverty are
significantly more likely to experience chronic health
problems, leading to unexpected and costly doctor visits that
undermine work, especially low-level entry jobs. A recent study
documents that children in poverty are much more likely to
experience chronic health problems, such as asthma and
Attention Deficit Hyperactivity Disorder (ADHD). Further,
children living in extreme poverty who have asthma or ADHD are
about twice as likely to have another chronic condition--like
developmental delays, autism, depression, behavioral issues,
speech/language difficulties, or epilepsy. Republicans rejected
an amendment to give states the authority to develop modified
employment plans for recipients caring for a family member with
a disability or chronic health condition as well as to prohibit
sanctions for caregivers if the work difficulties stemmed
directly from their children's health problems. A single mom
does not decide when an asthma attack, diabetic complication,
or sickle cell episode occurs. Allowing greater flexibility for
caregivers to meet their children's health needs without
sanction is humane and helps parents remain engaged in the
workforce.
When our country struggles with opioid addiction, the
Republican bill continues to exclude many people with substance
abuse convictions from TANF. Even though millions of parents
experience addiction, H.R. 5861 continues the policy of making
it easier for states to exclude them from assistance by
maintaining the lifetime ban for individuals with a felony drug
conviction rather than to help them move forward and support
their families. The federal government should take the lead to
convey to states that assisting individuals who have struggled
with addiction to find work is important for the economic well-
being of families and our nation.
When we heard from witness after witness about the need to
help returning citizens overcome their multiple barriers to
employment, this bill fails to focus states on the complex
needs of these potential workers.
Further, this bill fails to remove the barriers faced by
millions of family caregivers--like unrealistic work
requirements, time limits and asset tests meant for younger
workers, not for nearly-retired grandparents. Many Members on
this Committee live in states with large numbers of kinship
caregivers--states like Illinois, Texas, North Carolina, South
Carolina and Tennessee. This bill ignores these caregivers.
The Republican bill does not require states to improve
their standards to address domestic and sexual violence among
TANF participants. It also fails to acknowledge poverty-related
traumas, such as discrimination, social isolation, housing
instability, and community violence--often increasingly
experienced by single, female-headed families. Nor does it lift
the punitive bans on assistance to unwed teen parents who are
not in school nor the ban on teens who are not living with an
adult, leaving homeless youth and former foster youth out in
the cold.
Despite clear need, Republicans rejected an amendment to
focus states on helping these vulnerable parents overcome their
barriers to employment to achieve economic security.
Although H.R. 5861 extends the authorization of the
Fatherhood grants, the bill fails to modernize and expand these
grants to provide workforce development to noncustodial
fathers. Low-income fathers experience multiple challenges to
contributing financially and emotionally to their children due
to limited education and job skills, unstable employment
opportunities, incarceration, and strained relationships with
their children's mothers. Helping remove employment barriers
for noncustodial parents promises to promote economic well-
being, reduce poverty, and increase labor-force participation.
Improving the economic well-being of noncustodial parents
promotes responsible fatherhood and helps these workers provide
for their families.
Fathers play a significant role in the development of their
children, with research demonstrating that a supportive and
involved father strengthens a child's emotional, physical,
intellectual, and behavioral development. Children with
positive relationships with fathers--even if they do not live
in the same household--have stronger mental health, economic
success, and academic achievement with lower rates of youth
delinquency, school drop-out, and teen pregnancy. Father
engagement does not depend on living in the same house as one's
child, with many non-residential fathers being actively-
involved with their children and supportive of their children's
mothers. Despite the importance of fathers emotionally and
economically, Republicans rejected an amendment to increase the
upward economic mobility of custodial and noncustodial fathers
so they can actively participate in financial support and
child-rearing as well as maintain positive, healthy, and
nonviolent relationships with their children and co-parents.
Protections for Families. H.R. 5861 also lacks essential
due process protections to ensure that TANF recipients are not
inappropriately denied, sanctioned, or kicked-off of benefits.
Given that TANF primarily benefits children and given the
severe consequences associated with denial or loss of benefits
to impoverished families, it is reasonable to include basic
protections to ensure fair treatment of applicants and
recipients. For example, we should prohibit imposing life-time
or whole-family sanctions in order to provide basic necessities
to children. We should include a pre-sanction review process to
ensure families will not lose benefits in error or due to lack
of notice. Republicans rejected an amendment to include due
process protections to safeguard fair treatment for vulnerable
families with children.
Given these concerns, we strongly oppose H.R. 5861. This
legislation is too incomplete and fails to address the
substantial problems with TANF facing low-income children and
families in our communities--problems that contribute to child
poverty and suffering and problems that disproportionately harm
communities of color. We cannot support TANF legislation that
fails to increase the economic security of vulnerable children
and families, especially when Republicans are working to
undermine that same security by cutting the basic necessities
of food, housing, and healthcare for millions of struggling
families.
Danny K. Davis.
John Lewis.
Terri A. Sewell.
[all]