S ON THE BUDGET.

    Section 301 of the Congressional Budget Act of 1974 (2 U.S.C. 632) 
is amended by adding at the end the following:
    ``(j) Means-Tested Welfare Spending.--
            ``(1) In general.--The concurrent resolution on the budget 
        for a fiscal year shall set forth the appropriate level for 
        aggregate means-tested welfare spending for the first fiscal 
        year of that concurrent resolution and for at least each of the 
        4 ensuing fiscal years beginning on the earlier of--
                    ``(A) the first fiscal year that begins after the 
                date of enactment of this subsection and after any 
                monthly rate of unemployment during the immediately 
                preceding fiscal year is below 6 percent; or
                    ``(B) fiscal year 2016.
            ``(2) Setting level.--The level described in paragraph (1) 
        shall not exceed the aggregate level of Federal means-tested 
        welfare spending for fiscal year 2007, adjusted for inflation 
        as follows:
                    ``(A) In fiscal year 2016, the sum of 
                $825,000,000,000.
                    ``(B) In fiscal year 2017, the sum of 
                $750,000,000,000.
                    ``(C) In fiscal year 2018 and in subsequent fiscal 
                years, the aggregate level of Federal means-tested 
                welfare spending for fiscal year 2007, adjusted for 
                inflation as follows:
                            ``(i) Means-tested welfare spending 
                        relating to medical assistance programs shall 
                        be adjusted for inflation according to the 
                        price index for personal consumption 
                        expenditures for health products and services 
                        as calculated by the Bureau of Economic 
                        Analysis.
                            ``(ii) All other means-tested welfare 
                        spending shall be adjusted for inflation 
                        according to the weighted price index for 
                        personal consumption expenditures excluding 
                        health products and services as calculated by 
                        the Bureau of Economic Analysis.''.

SEC. 304. ALLOCATIONS OF MEANS-TESTED WELFARE SPENDING.

    (a) In General.--Section 302 of the Congressional Budget Act of 
1974 (2 U.S.C. 633) is amended by adding at the end the following:
    ``(h) Means-Tested Welfare Spending Limit.--
            ``(1) Further division of amounts.--For any concurrent 
        resolution on the budget in which levels for aggregate means-
        tested welfare spending are set forth under section 301(j), in 
        the House of Representatives and the Senate, the amounts 
        allocated under subsection (a) shall be further divided to 
        establish an allocation of--
                    ``(A) total new budget authority and total outlays 
                for discretionary means-tested welfare spending in 
                appropriation measures for the first fiscal year of 
                that concurrent resolution; and
                    ``(B) total new budget authority and total outlays 
                for mandatory means-tested welfare spending for the 
                first fiscal year of that concurrent resolution and at 
                least each of the ensuing 4 fiscal years to all other 
                committees of the House of Representatives and the 
                Senate that have jurisdiction over legislation 
                providing mandatory means-tested welfare spending.
            ``(2) Point of order.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), it shall not be in order in the House 
                of Representatives or the Senate to consider any bill, 
                joint resolution, amendment, or amendment between the 
                Houses if--
                            ``(i) the enactment of such bill or 
                        resolution as reported;
                            ``(ii) the adoption and enactment of such 
                        amendment;
                            ``(iii) the enactment of such bill or 
                        resolution in the form recommended in such 
                        conference report; or
                            ``(iv) the enactment of such amendment 
                        between the Houses,
                would cause the applicable allocation of new budget 
                authority or outlays made under subparagraph (A) or (B) 
                of paragraph (1) for a fiscal year to be exceeded.
                    ``(B) Exception.--The limits on the allocation of 
                new budget authority or outlays made under subparagraph 
                (A) or (B) of paragraph (1) shall not be in effect for 
                a fiscal year if the average monthly unemployment rate 
                in the preceding fiscal year exceeded 7.5 percent.''.
    (b) Conforming Amendment.--Section 302(b) of the Congressional 
Budget Act of 1974 is amended by striking ``under subsection (a)'' and 
inserting ``under subsections (a) and (h)''.

SEC. 305. RECONCILIATION.

    Section 310(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
641(a)) is amended--
            (1) in paragraph (3), by striking ``or'' at the end;
            (2) by redesignating paragraph (4) as paragraph (5);
            (3) by inserting after paragraph (3) the following:
            ``(4) specify the total amount by which new budget 
        authority for such fiscal year for mandatory means-tested 
        welfare spending contained in laws, bills, and resolutions 
        within the jurisdiction of a committee is to be changed and 
        direct that committee to determine and recommend changes to 
        accomplish a change of such total amount, which amount shall be 
        the amount by which the Congressional Budget Office baseline 
        level of spending for aggregate mandatory means-tested welfare 
        programs exceeds the allocation made pursuant to section 
        302(h)(1)(B) for such fiscal year; and''; and
            (4) in paragraph (5), as so redesignated, by striking ``and 
        (3)'' and inserting ``(3), and (4)''.

              TITLE IV--GRANTS TO PROMOTE SELF-SUFFICIENCY

SEC. 401. GRANTS TO STATES.

    (a) Purpose.--The purpose of this title is to encourage States to 
develop policies to promote self-sufficiency and prosperity and to 
reduce poverty and Government dependence.
    (b) Grants.--The Social Security Act is amended by adding at the 
end the following:

    ``TITLE XXII--GRANTS TO STATES TO PROMOTE SELF-SUFFICIENCY AND 
                  PROSPERITY AND TO REDUCE DEPENDENCE

``SEC. 2201. GRANTS TO STATES.

    ``(a) In General.--The Secretary may provide grants to States to 
reward reductions in poverty and Government dependence and increases in 
self-sufficiency.
    ``(b) Allocation of Grants to States.--For each fiscal year for 
which funds are made available under subsection (e), the Secretary 
shall make a grant in an amount equal to $100,000,000 to each of the 3 
States with the greatest percentage increases in the self-sufficiency 
ratio of the State for the preceding fiscal year over the self-
sufficiency ratio of the State for fiscal year 2007, as compared with 
the changes in that ratio for each other State, subject to subsection 
(c).
    ``(c) Limitation on Eligibility for Grants.--A State shall not be 
eligible for a grant under this title for a fiscal year unless the 
self-sufficiency ratio of the State for the fiscal year is greater than 
the self-sufficiency ratio of the State for fiscal year 2007.
    ``(d) Definitions.--In this title:
            ``(1) The term `self-sufficient family' means a family 
        (including a 1-person family) whose combined income, excluding 
        receipt of means-tested welfare spending (as defined in section 
        3(11)(A) of the Congressional Budget and Impoundment Control 
        Act of 1974), exceeds the poverty line (within the meaning of 
        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).
            ``(2) The term `self-sufficiency ratio' means, with respect 
        to a State and a fiscal year--
                    ``(A) the number of self-sufficient families 
                residing in the State during the fiscal year that are 
                headed by able-bodied individuals who have not attained 
                63 years of age; divided by
                    ``(B) the total number of families residing in the 
                State during the fiscal year that are headed by able-
                bodied individuals who have not attained 63 years of 
                age.
            ``(3) The term `State' means the 50 States and the District 
        of Columbia.
    ``(e) Limitations on Authorization of Appropriations.--For grants 
under this title, there are authorized to be appropriated to the 
Secretary $300,000,000 for fiscal year 2016 and each succeeding fiscal 
year.''.

              TITLE V--PROHIBITION ON FUNDING OF ABORTION

SEC. 501. PROHIBITION ON FUNDING FOR ABORTIONS.

    No funds authorized or appropriated by Federal law, and none of the 
funds in any trust fund to which funds are authorized or appropriated 
by Federal law, shall be expended for any abortion.

SEC. 502. PROHIBITION ON FUNDING FOR HEALTH BENEFITS PLANS THAT COVER 
              ABORTION.

    None of the funds authorized or appropriated by Federal law, and 
none of the funds in any trust fund to which funds are authorized or 
appropriated by Federal law, shall be expended for health benefits 
coverage that includes coverage of abortion.

SEC. 503. PROHIBITION ON TAX BENEFITS RELATING TO ABORTION.

    For taxable years beginning after the date of the enactment of this 
section, no credit shall be allowed under the internal revenue laws 
with respect to amounts paid or incurred for an abortion or with 
respect to amounts paid or incurred for a health benefits plan 
(including premium assistance) that includes coverage of abortion.

SEC. 504. CONSTRUCTION RELATING TO SEPARATE COVERAGE.

    Nothing in this title shall be construed as prohibiting any 
individual, entity, or State or locality from purchasing separate 
abortion coverage or health benefits coverage that includes abortion so 
long as such coverage is paid for entirely using only funds not 
authorized or appropriated by Federal law and such coverage shall not 
be purchased using matching funds required for a federally subsidized 
program, including a State's or locality's contribution of Medicaid 
matching funds.

SEC. 505. CONSTRUCTION RELATING TO THE USE OF NON-FEDERAL FUNDS FOR 
              HEALTH COVERAGE.

    Nothing in this title shall be construed as restricting the ability 
of any non-Federal health benefits coverage provider from offering 
abortion coverage, or the ability of a State or locality to contract 
separately with such a provider for such coverage, so long as only 
funds not authorized or appropriated by Federal law are used and such 
coverage shall not be purchased using matching funds required for a 
federally subsidized program, including a State's or locality's 
contribution of Medicaid matching funds.

SEC. 506. TREATMENT OF ABORTIONS RELATED TO RAPE, INCEST, OR PRESERVING 
              THE LIFE OF THE MOTHER.

    The limitations established in this title shall not apply to an 
abortion--
            (1) if the pregnancy is the result of an act of rape or 
        incest; or
            (2) in the case where a woman suffers from a physical 
        disorder, physical injury, or physical illness that would, as 
        certified by a physician, place the woman in danger of death 
        unless an abortion is performed, including a life-endangering 
        physical condition caused by or arising from the pregnancy 
        itself.
Welfare Reform Act of 2014 - Amends the Food and Nutrition Act of 2008 to declare that it should be the purpose of the supplemental nutrition assistance program (SNAP, formerly the food stamp program) to increase employment, encourage healthy marriage, and promote prosperous self-sufficiency, which means the ability of households to maintain an income above the poverty level without services and benefits from the federal government. Declares that food or a food product shall be considered a food under such Act only if it is a bare essential (as determined by the Secretary of Agriculture [USDA]). Defines "able-bodied, work capable adult" and "physically or mentally incapable of work."  Prescribes additional conditions of participation, denying SNAP eligibility, for instance, to any able-bodied, work-capable adult who: (1) refuses to register for employment or without good cause accept an offer of employment at a certain wage, (2) refuses without good cause to give a state agency sufficient information of his or her employment status or job availability, (3) voluntarily quits a job or reduces work effort below 30 hours a week unless another adult in the same family unit increases employment to make up the difference, or (4) is on strike because of a labor dispute other than a lockout. Revises SNAP eligibility requirements for students with dependent children. Denies SNAP eligibility to members of a program-eligible family required by the state agency to participate in work activation unless the relevant one or more adults in such family comply with the work activation standards. Terminates benefits for all family members for failure to participate in work activation during a given month. Prescribes work activation standards for a family unit with adult members required to participate in work activation. Gives states the option to require greater amounts of work activations for work capable family units. Requires each state participating in SNAP to carry out a work activation program whose goals are to: (1) encourage and assist able-bodied, work-capable adult SNAP recipients to obtain paid employment; (2) reduce dependence on government assistance; and (3) ensure that able-bodied, work-capable adult SNAP recipients make a contribution to society and the taxpayers in exchange for assistance received. Sets forth mandatory state work activation participation rates. Prescribes requirements for: (1) funding reductions as a penalty for inadequate state performance, (2) restoration in funding resulting from improved state performance, and (3) rewards to states for reducing government dependence. Amends the American Recovery and Reinvestment Act of 2009 to terminate its temporary increase in SNAP benefits.  Requires the President's budget to include the total level of means-tested welfare spending by the federal government as well as the total by all states, local governments, and the federal government for the most recent year for which such data is available, and estimated levels for the fiscal year during which the budget submission is made. Amends the Congressional Budget Act of 1974 to define "means-tested welfare spending" and specifies the federal programs on which welfare spending shall be means-tested, and which federal programs shall not be. Requires reports to congressional budget committees and the concurrent resolution on the budget to include specified information with respect to means-tested welfare spending, and requires a point of order in both chambers of Congress if the means-tested welfare spending limit is to be exceeded.  Amends the Social Security Act (SSA) to authorize the Secretary of Health and Human Services (HHS) to make grants to states to reward reductions in poverty and government dependence and increases in self-sufficiency.  Restricts funding for health benefits coverage that includes abortion.
Welfare Reform Act of 2014