To amend part A of title IV of the Social Security Act to temporarily reinstate, with certain adjustments, the Emergency Contingency Fund for State Temporary Assistance for Needy Families Programs, and for other purposes.

SECTION 1. TEMPORARY REINSTATEMENT OF THE EMERGENCY CONTINGENCY FUND 
              FOR STATE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 
              PROGRAMS.

    (a) In General.--Section 403 of the Social Security Act (42 U.S.C. 
603) is amended by adding at the end the following:
    ``(c) Emergency Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund which shall be known as the 
        `Emergency Contingency Fund for State Temporary Assistance for 
        Needy Families Programs' (in this subsection referred to as the 
        `Emergency Fund').
            ``(2) Deposits into fund.--
                    ``(A) In general.--Out of any money in the Treasury 
                of the United States not otherwise appropriated, there 
                are appropriated for fiscal year 2011, $20,000,000,000 
                for payment to the Emergency Fund.
                    ``(B) Availability and use of funds.--The amounts 
                appropriated to the Emergency Fund under subparagraph 
                (A) shall remain available through fiscal year 2018 and 
                shall be used to make grants to States in each of 
                fiscal years 2011 through 2018 in accordance with the 
                requirements of paragraph (3).
                    ``(C) Limitation.--In no case may the Secretary 
                make a grant from the Emergency Fund for a fiscal year 
                after fiscal year 2018.
            ``(3) Grants.--
                    ``(A) Grant related to caseload increases.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2011 through 2018, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Caseload increase requirement.--A 
                        State meets the requirement of this clause for 
                        a quarter in a fiscal year if the average 
                        monthly assistance caseload of the State for 
                        the quarter exceeds the average monthly 
                        assistance caseload of the State for the 
                        corresponding quarter in the preceding fiscal 
                        year.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter in a fiscal year shall be an amount 
                        equal to 80 percent of the amount (if any) by 
                        which the total expenditures of the State for 
                        basic assistance (as defined by the Secretary) 
                        in the quarter, whether under the State program 
                        funded under this part or as qualified State 
                        expenditures, exceeds the total expenditures of 
                        the State for such assistance for the 
                        corresponding quarter in the preceding fiscal 
                        year.
                    ``(B) Grant related to increased expenditures for 
                non-recurrent short term benefits.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2011 through 2018, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Non-recurrent short term expenditure 
                        requirement.--A State meets the requirement of 
                        this clause for a quarter in a fiscal year if 
                        the total expenditures of the State for non-
                        recurrent short term benefits in the quarter, 
                        whether under the State program funded under 
                        this part or as qualified State expenditures, 
                        exceeds the total expenditures of the State for 
                        non-recurrent short term benefits in the 
                        corresponding quarter in the preceding fiscal 
                        year.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter shall be an amount equal to 80 percent 
                        of the excess described in clause (ii).
                    ``(C) Grant related to increased expenditures for 
                subsidized employment.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2011 through 2018, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Subsidized employment expenditure 
                        requirement.--A State meets the requirement of 
                        this clause for a quarter in a fiscal year if 
                        the total expenditures of the State for 
                        subsidized employment in the quarter, whether 
                        under the State program funded under this part 
                        or as qualified State expenditures, exceeds the 
                        total such expenditures of the State in the 
                        corresponding quarter in the preceding fiscal 
                        year.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter shall be an amount equal to 80 percent 
                        of the excess described in clause (ii).
            ``(4) Authority to make necessary adjustments to data and 
        collect needed data.--In determining the size of the caseload 
        of a State and the expenditures of a State for basic 
        assistance, non-recurrent short-term benefits, and subsidized 
        employment, during any period for which the State requests 
        funds under this subsection, the Secretary may make appropriate 
        adjustments to the data, on a State-by-State basis, to ensure 
        that the data are comparable with respect to the groups of 
        families served and the types of aid provided. The Secretary 
        may develop a mechanism for collecting expenditure data, 
        including procedures which allow States to make reasonable 
        estimates, and may set deadlines for making revisions to the 
        data.
            ``(5) Limitation.--The total amount payable to a single 
        State under subsection (b) and this subsection for fiscal years 
        2011 through 2018 combined shall not exceed 50 percent of the 
        annual State family assistance grant.
            ``(6) Limitations on use of funds.--A State to which an 
        amount is paid under this subsection may use the amount only as 
        authorized by section 404.
            ``(7) Timing of implementation.--The Secretary shall 
        implement this subsection as quickly as reasonably possible, 
        pursuant to appropriate guidance to States.
            ``(8) Application to indian tribes.--This subsection shall 
        apply to an Indian tribe with an approved tribal family 
        assistance plan under section 412 in the same manner as this 
        subsection applies to a State.
            ``(9) Definitions.--In this subsection:
                    ``(A) Average monthly assistance caseload 
                defined.--The term `average monthly assistance 
                caseload' means, with respect to a State and a quarter, 
                the number of families receiving assistance during the 
                quarter under the State program funded under this part 
                or as qualified State expenditures, subject to 
                adjustment under paragraph (4).
                    ``(B) Qualified state expenditures.--The term 
                `qualified State expenditures' has the meaning given 
                the term in section 409(a)(7).''.
    (b) Disregard From Limitation on Total Payments to Territories.--
Section 1108(a)(2) of the Social Security Act (42 U.S.C. 1308(a)(2)) is 
amended by inserting ``403(c)(3),'' after ``403(a)(5),''.
    (c) Elimination of Modification of Caseload Reduction Credit.--
            (1) In general.--Section 407(b)(3)(A)(i) of the Social 
        Security Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by striking 
        ``(or if the immediately preceding fiscal year is fiscal year 
        2008, 2009, or 2010, then, at State option, during the 
        emergency fund base year of the State with respect to the 
        average monthly assistance caseload of the State (within the 
        meaning of section 403(c)(9)), except that, if a State elects 
        such option for fiscal year 2008, the emergency fund base year 
        of the State with respect to such caseload shall be fiscal year 
        2007))''.
            (2) Conforming amendments.--Section 2101 of the American 
        Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 
        Stat. 446-449) is amended--
                    (A) in subsection (a)(2), by striking ``, except 
                that paragraph (9) of such subsection shall remain in 
                effect until October 1, 2011, but only with respect to 
                section 407(b)(3)(A)(i) of such Act''; and
                    (B) in subsection (d), by striking paragraph (2).
    (d) Sunset.--Effective October 1, 2018:
            (1) Emergency fund.--Section 403 of the Social Security Act 
        (42 U.S.C. 603) (as added by paragraph (1)) is amended by 
        striking subsection (c) (as added by subsection (a) of this 
        section).
            (2) Disregard from limitation on total payments to 
        territories.--Section 1108(a)(2) of such Act (42 U.S.C. 
        1308(a)(2)) is amended by striking ``403(c)(3),'' (as added by 
        subsection (b) of this section).

Summary: Amends title IV (TANF) of the Social Security Act to reestablish for FY2011-FY2018 the Emergency Contingency Fund for State Temporary Assistance for Needy Families Programs for the purpose of grants to states by the Secretary of the Treasury related to: (1) increases in TANF caseloads, and (2) increased expenditures for non-recurrent short term benefits.