To amend the Social Security Act to eliminate the cap on certain payments under the TANF program to Puerto Rico, the Virgin Islands, Guam, and American Samoa, and for other purposes.

Summary: Territorial TANF Equity Act of 2012 - Amends title XI of the Social Security Act (SSA) to remove the limitation on payments by the Secretary of Health and Human Services (HHS) to Puerto Rico, the Virgin Islands, Guam, and American Samoa under grants for assistance to the aged, the blind, and the permanently and totally disabled, including Supplemental Security Income (SSI) under SSA title XVI, as well as for Temporary Assistance for Needy Families (TANF) under SSA title IV part A and for foster care and adoption assistance under SSA title IV part E.

Replaces entitlement to a matching grant with entitlement to a supplemental grant for such territories of: (1) 10% of the payable family assistance grant to Puerto Rico, the Virgin Islands, and Guam; and (2) $100,000 to American Samoa.

Amends part A (Temporary Assistance for Needy Families) (TANF) of SSA title IV o make such territories: (1) eligible for the TANF Contingency Fund for State Welfare Programs; (2) Needy States if they satisfy alternative eligibility criteria established by the Secretary; and (3) eligible for child care entitlement funds. Prescribes a formula for allotment of child care entitlement funds to such territories.

Amends part E (Foster Care and Adoption Assistance) of SSA title IV to increase the federal medical assistance percentage (FMAP) for foster care and adoption assistance in such territories.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Territorial TANF Equity Act of 
2012''.

SEC. 2. ELIMINATION OF CAP ON CERTAIN PAYMENTS TO PUERTO RICO, THE 
              VIRGIN ISLANDS, GUAM, AND AMERICAN SAMOA.

    (a) In General.--Section 1108 of the Social Security Act (42 U.S.C. 
1308) is amended by striking subsection (a).
    (b) Conforming Amendments.--
            (1) Redesignations.--Section 1108 of such Act (42 U.S.C. 
        1308) is amended by redesignating subsections (b), (c), (d), 
        (f), and (g) as subsections (a), (b), (c), (d), and (e), 
        respectively.
            (2) Additional conforming amendments.--Section 1108 of such 
        Act (42 U.S.C. 1308) is amended--
                    (A) in subsection (b), as redesignated by paragraph 
                (1)--
                            (i) by striking paragraphs (2), (4), and 
                        (5); and
                            (ii) redesignating paragraph (3) as 
                        paragraph (2);
                    (B) in subsection (c), as redesignated by paragraph 
                (1), by striking ``subsection (b)'' and inserting 
                ``subsection (a)'';
                    (C) in subsection (d), as redesignated by paragraph 
                (1), by striking ``subsection (g)'' and inserting 
                ``subsection (e)''; and
                    (D) in subsection (e), as redesignated by paragraph 
                (1), by striking ``subsection (f)'' each place it 
                appears and inserting ``subsection (d)''.

SEC. 3. SUPPLEMENTAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, GUAM, 
              AND AMERICAN SAMOA.

    Section 1108(a) of the Social Security Act (42 U.S.C. 1308(a)), as 
redesignated by section 2(b)(1) of this Act, is amended to read as 
follows:
    ``(a) Entitlement to Supplemental Grants.--
            ``(1) In general.--Each territory shall be entitled to 
        receive from the Secretary for each fiscal year a supplemental 
        grant in an amount equal to--
                    ``(A) in the case of Puerto Rico, the Virgin 
                Islands, and Guam, 10 percent of the family assistance 
                grant payable to the territory for the fiscal year; and
                    ``(B) in the case of American Samoa, $100,000.
            ``(2) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated for fiscal year 2012 such sums as are necessary 
        for grants under this subsection.''.

SEC. 4. ELIGIBILITY OF PUERTO RICO, THE VIRGIN ISLANDS, GUAM, AND 
              AMERICAN SAMOA FOR THE TANF CONTINGENCY FUND.

    (a) Definition of State.--Section 403(b)(7) of the Social Security 
Act (42 U.S.C. 603(b)(7)) is amended by striking ``and the District of 
Columbia'' and inserting ``, the District of Columbia, Puerto Rico, the 
Virgin Islands, Guam, and American Samoa.''.
    (b) Alternative Eligibility Criteria for Territories.--Section 
403(b)(5) of such Act (42 U.S.C. 603(b)(5)) is amended--
            (1) in subparagraph (A)(ii), by striking ``or'' at the end;
            (2) in subparagraph (B)(ii), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) in the case of Puerto Rico, the Virgin 
                Islands, Guam, and American Samoa, the State satisfies 
                alternative eligibility criteria established by the 
                Secretary in consultation with the Governor of the 
                State, to be submitted to the Congress not later than 1 
                year after the date of the enactment of this 
                subparagraph.''.

SEC. 5. ELIGIBILITY OF PUERTO RICO, THE VIRGIN ISLANDS, GUAM, AND 
              AMERICAN SAMOA FOR CHILD CARE ENTITLEMENT FUNDS.

    (a) Definition of State.--Section 418(d) of the Social Security Act 
(42 U.S.C. 618(d)) is amended by striking ``and the District of 
Columbia'' and inserting ``, the District of Columbia, Puerto Rico, the 
Virgin Islands, Guam, and American Samoa.''.
    (b) Amount of Payment.--
            (1) General entitlement.--Section 418(a)(1) of such Act (42 
        U.S.C. 618(a)(1)) is amended by striking ``equal to the greater 
        of--'' and all that follows and inserting the following: 
        ``equal to--
                    ``(A) in the case of Puerto Rico, the Virgin 
                Islands, Guam, and American Samoa, 60 percent of the 
                amount required to be paid to the State for fiscal year 
                2010 under the Child Care and Development Block Grant 
                Act of 1990; or
                    ``(B) in the case of any other State, the greater 
                of--
                            ``(i) the total amount required to be paid 
                        to the State under section 403 of this Act for 
                        fiscal year 1994 or 1995 (whichever is greater) 
                        with respect to expenditures for child care 
                        under subsections (g) and (i) of section 402 of 
                        this Act (as in effect before October 1, 1995); 
                        or
                            ``(ii) 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 clause (i).''.
            (2) Allotment of remainder.--Section 418(a)(2)(B) of such 
        Act (42 U.S.C. 618(a)(2)(B)) is amended to read as follows:
                    ``(B) Allotments to states.--Of the total amount 
                available for payments to States under this paragraph, 
                as determined under subparagraph (A)--
                            ``(i) an amount equal to 65 percent of the 
                        amount required to be paid to each of Puerto 
                        Rico, the Virgin Islands, Guam, and American 
                        Samoa for fiscal year 2010 under the Child Care 
                        and Development Block Grant Act of 1990, shall 
                        be allotted to Puerto Rico, the Virgin Islands, 
                        Guam, and American Samoa, respectively; and
                            ``(ii) the remainder shall be allotted 
                        among the other States based on the formula 
                        used for determining the amount of Federal 
                        payments to each State under section 403(n) of 
                        this Act (as in effect before October 1, 
                        1995).''.

SEC. 6. INCREASE IN FEDERAL MATCHING RATE FOR FOSTER CARE AND ADOPTION 
              ASSISTANCE IN PUERTO RICO, THE VIRGIN ISLANDS, GUAM, AND 
              AMERICAN SAMOA.

    Section 474(a) of the Social Security Act (42 U.S.C. 674(a)) is 
amended in each of paragraphs (1) and (2)--
            (1) by striking ``in the case of a State other than the 
        District of Columbia, or'' and inserting ``in the case of each 
        of the 50 States,''; and
            (2) by inserting ``, or 75 percent, in the case of Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa'' after ``in 
        the case of the District of Columbia''.

SEC. 7. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the 1st day of 
the 1st fiscal year that begins 1 year or more after the date of 
enactment of this Act.