69–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 115–185 

ACCELERATING INDIVIDUALS INTO THE WORKFORCE 

ACT 

JUNE 20, 2017.—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 

ADDITIONAL VIEWS 

[To accompany H.R. 2842] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Ways and Means, to whom was referred the 

bill (H.R. 2842) to provide for the conduct of demonstration projects 

to test the effectiveness of subsidized employment for TANF recipients, 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 ............................................................... 3 

A. Purpose and Summary ..................................................................... 3 

B. Background and Need for Legislation ............................................. 4 

C. Legislative History ............................................................................ 4 

II. EXPLANATION OF THE BILL ................................................................... 6 

Section 1: Short Title ............................................................................. 6 

Section 2: Demonstration Projects to Support Subsidized Employment for TANF Recipients to Enter the Workforce ..................... 6 

Section 3: Effective Date ....................................................................... 8 

III. VOTES OF THE COMMITTEE .................................................................... 8 

IV. BUDGET EFFECTS OF THE BILL ............................................................ 9 

A. Committee Estimate of Budgetary Effects ...................................... 9 

B. Statement Regarding New Budget Authority and Tax Expenditures Budget Authority .................................................................. 9 

C. Cost Estimate Prepared by the Congressional Budget Office ....... 9 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

THE HOUSE .............................................................................................. 10 


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A. Committee Oversight Findings and Recommendations ................. 10 

B. Statement of General Performance Goals and Objectives ............. 10 

C. Information Relating to Unfunded Mandates ................................ 10 

D. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 10 

E. Duplication of Federal Programs ..................................................... 11 

F. Disclosure of Directed Rule Makings .............................................. 11 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 11 

VII. ADDITIONAL VIEWS ................................................................................... 38 

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 ‘‘Accelerating Individuals into the Workforce Act’’. 

SEC. 2. DEMONSTRATION PROJECTS TO SUPPORT SUBSIDIZED EMPLOYMENT FOR TANF RECIPIENTS TO ENTER THE WORKFORCE. 

Section 403 of the Social Security Act (42 U.S.C. 603) is amended by adding at 

the end the following: 

‘‘(c) SUBSIDIZED EMPLOYMENT DEMONSTRATION PROJECTS.— 

‘‘(1) IN GENERAL.—The Secretary shall make grants to States to conduct demonstration projects, at least one of which shall fund programs that offer apprenticeships registered under the Act of August 16, 1937 (commonly known as the 

‘National Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), 

designed to implement and evaluate strategies that provide wage subsidies to 

enable low-income individuals to enter into and retain employment. 

‘‘(2) APPLICATION REQUIREMENTS.—The Secretary shall require each State 

that applies for a grant under this subsection to do the following: 

‘‘(A) Describe how wage subsidies will be provided (such as whether paid 

directly to the employer or the individual), the duration of the subsidies, 

the amount of the subsidies, the structure of the subsidies, and how employers will be recruited to participate in the subsidized employment program. 

‘‘(B) Describe how the State expects those participating in subsidized employment to be able to retain employment after the subsidy ends. 

‘‘(C) Describe how the State will coordinate subsidized employment funded under this subsection with other efforts to help low-income individuals 

enter work as conducted by the State. 

‘‘(3) USE OF FUNDS.— 

‘‘(A) IN GENERAL.—A State to which a grant is made under this subsection may use the grant to subsidize the wages of an eligible recipient for 

a period not exceeding 12 months, and only to the extent that the total of 

the funds paid under this project and any other Federal funds so used with 

respect to the recipient does not exceed 50 percent of the amount of the 

wages received by the recipient during the period. 

‘‘(B) ELIGIBLE RECIPIENT.—For purposes of subparagraph (A), an eligible 

recipient is— 

‘‘(i)(I) a recipient of 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)); or 

‘‘(II) a noncustodial parent of a minor child who is receiving assistance referred to in subclause (I); 

‘‘(ii) who, at the time the subsidy begins, is unemployed; and 

‘‘(iii) whose income, at that time, is less than 200 percent of 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))). 

‘‘(4) LIMITATIONS.— 

‘‘(A) NONDISPLACEMENT.—A State to which a grant is made under this 

subsection shall ensure that no participant in a subsidized job program 

funded in whole or in part under this subsection is employed or assigned 

to a job under the program— 

‘‘(i) when any other individual is on layoff from the same or any substantially equivalent job; or 

‘‘(ii) 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). 


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‘‘(B) GRIEVANCE PROCEDURE.—A State with a program funded under this 

subsection shall establish and maintain a grievance procedure for resolving 

complaints of alleged violations of subparagraph (A). 

‘‘(C) NO PREEMPTION.—Nothing in this paragraph shall preempt or supersede any provision of State or local law that provides greater protection for 

employees from displacement. 

‘‘(5) REPORTS.—As a condition of receiving funds under this subsection for a 

fiscal year, a State shall submit to the Secretary, within 6 months after the end 

of the fiscal year, a report that— 

‘‘(A) specifies, for each month of the fiscal year, the number of individuals 

whose employment is subsidized with these funds; 

‘‘(B) describes the structure of the State activities to use the funds to subsidize employment, including the amount and duration of the subsidies provided; 

‘‘(C) specifies the percentage of eligible recipients who received a subsidy 

who are in unsubsidized employment during the second quarter after the 

subsidy ended; 

‘‘(D) specifies the percentage of eligible recipients who received a subsidy 

who are in unsubsidized employment during the fourth quarter after the 

subsidy ended; and 

‘‘(E) specifies the median earnings of eligible recipients who received a 

subsidy who are in unsubsidized employment during the second quarter 

after the subsidy ended. 

‘‘(6) EVALUATION.—The Secretary, in consultation with each State conducting 

a demonstration project, shall conduct a high-quality evaluation of the demonstration project, and may reserve funds made available under this subsection 

to conduct the evaluation in accordance with the following: 

‘‘(A) EVALUATOR QUALIFICATIONS.—The Secretary may not enter into a 

contract with an evaluator unless the evaluator has demonstrated experience in conducting rigorous evaluations of program effectiveness including, 

where available and appropriate, well-implemented randomized controlled 

trials. 

‘‘(B) METHODOLOGIES TO BE USED.—The evaluation of a demonstration 

project 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. 

‘‘(C) PUBLIC DISCLOSURE.—The Secretary shall publish the results of the 

evaluation on the website of the Department of Health and Human Services 

in a location easily accessible by the public. 

‘‘(7) RECOMMENDATIONS TO CONGRESS.—The Secretary shall submit recommendations to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on how to increase 

the employment, retention, and advancement of individuals currently or formerly receiving assistance under 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)). 

‘‘(8) FUNDING.—Of the amounts made available to carry out subsection (b) for 

fiscal year 2018, the Secretary shall reserve $100,000,000 to carry out this subsection. 

‘‘(9) USE OF CERTAIN FUNDS FOR CAREER PATHWAY PROGRAMS.—The Secretary 

shall use 15 percent of the amounts reserved to carry out this subsection, to 

fund programs that offer career pathway (as defined in section 3(7) of the Workforce Innovation and Opportunity Act) services. 

‘‘(10) AVAILABILITY OF FUNDS.—Funds provided to a State under this subsection in a fiscal year shall be expended by the State in the fiscal year or in 

the succeeding fiscal year.’’. 

SEC. 3. EFFECTIVE DATE. 

The amendment made by this Act shall take effect on October 1, 2017. 

I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

H.R. 2842, as amended, the ‘‘Accelerating Individuals into the 

Workforce Act,’’ as ordered reported by the Committee on Ways 

and Means on June 15, 2017 encourages employer-led partnerships 

to help people move from welfare to work. 


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B. BACKGROUND AND NEED FOR LEGISLATION

In 1996, the Aid to Families with Dependent Children (AFDC) 

program was replaced with today’s Temporary Assistance for 

Needy Families program (TANF), which included work requirements and state flexibility to invest in services that would help 

welfare recipients prepare for work and find jobs. 

The number of families receiving cash assistance under the 

TANF program fell by more than 50 percent during TANF’s early 

years, and has generally remained low over time. Employment 

rates of single mothers with children increased by 15 percent 

through 2007 compared with 1995; while their work rates declined 

as a result of the 2007–09 recession, they have risen again since 

2011 and remain 10 percent higher than before. Poverty among female-headed households with children remains lower today than 

before the 1996 reforms—despite two intervening recessions. 

The TANF program has helped shield some American families 

from sinking deeper into poverty by providing temporary assistance 

that is also linked to support for employment. But it’s been at least 

a decade since any meaningful changes have been made to this 

law. 

While moving welfare recipients into employment is a central 

goal of TANF, some welfare recipients have a difficult time 

transitioning from welfare into a job. In some cases, employers may 

be reluctant to hire welfare recipients who may have limited work 

experience or other barriers to working, which can be better managed when the cost of hiring a TANF recipient is decreased. 

H.R. 2842, as amended, would encourage the following: 

• Employers would take the lead by partnering with state and 

local agencies to hire TANF recipients, providing recipients with 

highly-valued work experience and on-the-job training. • Up to $100 million (reserved from the TANF Contingency 

Fund in FY 2018) would be provided to subsidize the wages of 

TANF recipients for up to 12 months. • Fifteen percent of these funds would be set-aside for career 

pathways programs, which combine work, training, and other supports to help individuals enter the workforce and move up the economic ladder. • No more than 50 percent of the wage for a TANF recipient 

could be subsidized using funds from this bill, while the other half 

of the wage would be paid by the employer, or with state or local 

funds. • High-quality evaluations would be used to determine whether 

these public-private partnerships were effective in helping welfare 

recipients move into jobs and retain work. • Based on what is learned from the projects, the Department of 

Health and Human Services would have to submit recommendations to Congress on how to increase the employment of TANF recipients, as well as how to help them retain their jobs and increase 

earnings over time. 

C. LEGISLATIVE HISTORY

Background 

H.R. 2842, the ‘‘Accelerating Individuals into the Workforce Act,’’ 

was introduced on June 8, 2017, by Congressman Carlos Curbelo 


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and Congressman Danny Davis, and was referred to the Committee 

on Ways and Means. 

Committee hearings 

The Committee began a bipartisan, comprehensive review of the 

TANF program at the beginning of the 114th Congress. The 

Human Resources Subcommittee held a series of hearings with witnesses ranging from current and former recipients to service providers to employers to researchers. Members of the Human Resources Subcommittee introduced a series of bills focused on smaller provisions within TANF, and then those provisions were compiled into a larger, more comprehensive draft reauthorization bill. 

That bipartisan draft was distributed for public comment and dozens of stakeholders provided valuable feedback, some of which has 

been incorporated in H.R. 2842. 

Throughout the 114th Congress, the Human Resources Subcommittee held a series of hearings on possible reforms to the 

TANF program, including discussions focused on the need for private sector engagement, on-the-job training, and subsidized employment programs. Those hearings included: • Challenges Facing Low-Income Individuals and Families 

in Today’s Economy, February 11, 2015 • Expanding Opportunity by Funding What Works: Using 

Evidence to Help Low-Income Individuals and Families Get 

Ahead, March 17, 2015 • Next Steps for Welfare Reform: Ideas to Improve TANF to 

Help More Families Find Work and Escape Poverty, April 30, 

2015 • Protecting the Safety Net from Waste, Fraud, and Abuse, June 3, 2015 • Joint Subcommittee Hearing on How Our Welfare System 

Can Discourage Work, June 25, 2015 • Welfare Reform Proposals, July 15, 2015 • Better Coordinating Welfare Programs to Serve Families in 

Need, November 3, 2015 

• Moving America’s Families Forward: Lessons Learned from 

Welfare Reform in Other Countries, November 17, 2015 

• Getting Incentives Right: Connecting Low-Income Individuals with Jobs, March 1, 2016 

In addition, on May 24, 2016 the Ways and Means Committee 

held a full Committee hearing entitled Moving America’s Families 

Forward: Setting Priorities for Reducing Poverty and Expanding 

Opportunity. 

Thus far in the 115th Congress the Human Resources Subcommittee has conducted the following related hearings: 

• The Geography of Poverty, February 15, 2017 

• Opportunities for Youth and Young Adults to Break the 

Cycle of Poverty, May 17, 2017 

Committee action 

The Committee on Ways and Means marked up H.R. 2842, the 

‘‘Accelerating Individuals into the Workforce Act,’’ on June 15, 

2017. The bill, H.R. 2842, was ordered favorably reported to the 

House of Representatives as amended by a voice vote (with a 

quorum being present). 


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1This is a regulatory definition of work subsidies at 45 C.F.R. § 260.31(b)(2). 

II. EXPLANATION OF THE BILL 

SECTION 1: SHORT TITLE

PRESENT LAW

No provision. 

EXPLANATION OF PROVISION

This section contains the short title of the bill, the ‘‘Accelerating 

Individuals into the Workforce Act.’’ 

REASON FOR CHANGE

The Committee believes that the short title reflects the policy actions included in the legislation. 

EFFECTIVE DATE

The provision is effective on October 1, 2017. 

SECTION 2: DEMONSTRATION PROJECTS TO SUPPORT SUBSIDIZED

EMPLOYMENT FOR TANF RECIPIENTS TO ENTER THE WORKFORCE

PRESENT LAW

The Temporary Assistance for Needy Families (TANF) block 

grant allows states to spend funds on activities that can be ‘‘reasonably calculated’’ to achieve the purpose of TANF, including the 

goal of ending dependence of needy parents on government benefits 

through work and job preparation. Federal TANF funds may be 

spent on employment subsidies. States may also count expenditures on employment subsidies toward the TANF state spending 

(maintenance of effort, or MOE) requirement. Employment subsidies are payments to employers or third parties to help cover the 

costs of employee wages, benefits, supervision, and training.1

Additionally, TANF measures state performance through a 

‘‘Work Participation Rate’’ (WPR) that measures the percent of 

families receiving assistance in the state who are considered ‘‘engaged in work.’’ To be considered ‘‘engaged in work,’’ a work-eligible 

individual in the family must participate in specific activities for a 

minimum number of hours per week in the month. Two of the specific activities creditable toward the WPR are subsidized private 

sector employment and subsidized public sector employment. Education and training, including career pathways programs and employer-based programs which combine work with training, are allowable but subject to restrictions. 

EXPLANATION OF PROVISION

The Committee bill, as amended, would establish a subsidized 

employment demonstration program, administered by the Department of Health and Human Services (HHS). The Secretary of HHS 

would award grants to states for the development of subsidized employment demonstration projects that would evaluate strategies 

that provide wage subsidies to help low-income individuals obtain 

and retain employment. States applying for subsidized employment 


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demonstration funds would be required to describe the wage subsidy program, how the state expects those participating in subsidized employment to retain employment after the subsidy ends, 

and how the state will coordinate subsidized employment funds 

with other efforts to help low-income individuals enter the workforce. 

The Committee bill, as amended, would provide that wage subsidies extend for no more than 12 months, and that federal funds 

account for no more than 50 percent of a participant’s wage. It 

would require that those participating in the subsidized employment program: 

1. be unemployed; 

2. have income at the time of program entry of less than 200% 

of the federal poverty guidelines; and 

3. be either recipients of assistance funded from TANF or state 

MOE dollars or noncustodial parents of children receiving such assistance. 

States in the subsidized employment demonstration would be 

prohibited from displacing regular employees by placing participants in subsidized jobs. States are also prohibited from placing an 

individual with employers who have terminated the job of a regular 

employee or have involuntarily reduced their workforce to hire a 

subsidized employee. States would be required to have a grievance 

procedure in place for regular employees to resolve complaints of 

displacement. The non-displacement provisions and procedures for 

the subsidized employment demonstration would not pre-empt or 

supersede state or local laws that provide greater protections for 

employees. 

States receiving subsidized employment funds would be required 

to report annually to HHS on the number of persons in subsidized 

employment, the structure of activities of the program, and the employment outcome measures following the end of subsidized employment. The outcome measures would be employment in the 2nd 

quarter and 4th quarter following exit and median earnings in the 

second quarter following exit. 

The Committee bill, as amended, would require HHS to conduct 

an evaluation of the demonstration project using experimental designs using random assignment, unless such research design is not 

feasible. If a random assignment experiment is not feasible, the research would be conducted using other reliable evidence-based research methodologies. 

HHS would be required to report to Congress recommendations 

on how to increase employment, retention, and advancement of individuals currently or formerly receiving TANF assistance. 

The Committee bill, as amended, would require the Secretary to 

reserve $100,000,000 of the Contingency Fund for State Welfare 

Programs for FY2018 to carry out the demonstration. Of that 

amount, 15 percent ($15,000,000) is reserved for the operation of 

career pathway training programs. Career pathway programs are 

a combination of education, training, and other services that aligns 

with the skill needs of industries in the economy of the state or regional economy involved. They are designed to help an individual 

enter or advance within a specific occupation or occupational cluster. 


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Funds for this demonstration must be expended by the end of 

FY2019. The provisions in this bill would be effective October 1, 

2017. 

REASON FOR CHANGE

The Committee believes moving welfare recipients into employment is a central goal of TANF. However, in some cases, employers 

may be reluctant to hire welfare recipients who may have limited 

work experience or other barriers to working, which can be better 

managed when the cost of hiring a TANF recipient is decreased. 

This provision is designed to overcome those barriers and enhance 

employer engagement, strengthen public-private partnerships, and 

help move more individuals from welfare to work quickly. 

EFFECTIVE DATE

The provision is effective on October 1, 2017. 

SECTION 3: EFFECTIVE DATE

PRESENT LAW

No provision. 

EXPLANATION OF PROVISION

This section includes an effective date of October 1, 2017. 

REASON FOR CHANGE

The Committee believes it is appropriate to have an effective 

date of October 1, 2017, i.e., the start of the next fiscal year. 

EFFECTIVE DATE

The provision is effective on October 1, 2017. 

III. VOTES OF THE COMMITTEE 

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the vote of the Committee on Ways and Means in its consideration of H.R. 2842, the ‘‘Accelerating Individuals into the 

Workforce Act,’’ on June 15, 2017. 

The amendment by Congresswoman DelBene and Congressman 

Reichert to the amendment in the nature of a substitute to H.R. 

2842, which would require that at least one of the demonstration 

projects funded under the bill be an apprenticeship program, was 

agreed to by a voice vote (with a quorum being present). 

The Committee on Ways and Means marked up H.R. 2842, the 

‘‘Accelerating Individuals into the Workforce Act,’’ on June 15, 

2017. The bill, H.R. 2842, was ordered favorably reported to the 

House of Representatives as amended by a voice vote (with a 

quorum being present). 


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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. 2842, 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 19, 2017. 

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. 2842, the Accelerating Individuals into the Workforce 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. 

Enclosure. 

H.R. 2842—Accelerating Individuals into the Workforce Act 

H.R. 2842 would amend title IV of the Social Security Act to enable the Department of Health and Human Services (HHS) to provide grants to states to conduct demonstration projects that would 

support subsidized employment for individuals who receive aid 

under the Temporary Assistance for Needy Families (TANF) program. Specifically, states could use grants to subsidize up to 50 

percent of the wages provided to a TANF recipient for up to 12 

months. HHS would be required to conduct evaluations of those 

demonstration projects. The bill also would require HHS to fund 

programs that offer career pathways to individuals receiving assistance under TANF. H.R. 2842 would reserve $100 million of the 

$608 million already appropriated for the TANF contingency fund 

for 2018 to fund the demonstration projects and their evaluations. 

States would have up to two years to spend any grant money provided by HHS. 


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Based on information from HHS, CBO estimates that direct 

spending from the contingency fund under the bill would mostly 

follow similar patterns as spending from the fund under current 

law. Thus, any net effect on direct spending would be insignificant. 

Because enacting the bill would affect direct spending, pay-as-yougo procedures apply. Enacting H.R. 2842 would not affect revenues. 

CBO estimates that enacting H.R. 2842 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2028. 

H.R. 2842 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. The bill 

would authorize a demonstration grant program that would allow 

states to provide low-income individuals with wage subsidies to 

help them find jobs and retain employment. Any costs to states 

that result from implementing the demonstration project authorized by the bill would be incurred voluntarily as a condition of federal assistance. 

The CBO staff contact for this estimate is Susanne S. Mehlman. 

This estimate was approved 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 the requirement of clause 3(c)(4) of rule XIII of 

the Rules of the House of Representatives, the Committee establishes the following performance-related goals and objectives for 

this legislation: performance goals and objectives that encourage 

employer-led partnerships to help people move from welfare to 

work. 

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. 


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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 rule makings 

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 is 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 (new matter is printed in italics 

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 

* * * * * * * 

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, a grant in an amount equal to the State family 

assistance grant. 


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(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) 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 

$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 


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(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 atrisk 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 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. 


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(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 PRO- MOTING 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 

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tionally 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 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 

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fied 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 


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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 APPRO- PRIATIONS.—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.— 


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(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 PER- FORMANCE 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 fisVerDate Sep 11 2014 04:44 Jun 21, 2017 Jkt 069006 PO 00000 Frm 00018 Fmt 6659 Sfmt 6602 E:\HR\OC\HR185.XXX HR185

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cal 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 

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tion 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 


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(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.— 


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(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. 


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(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). 


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(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: 


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25 

(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 


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26 

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 

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ties 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 


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28 

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 


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29 

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 


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30 

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 


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31 

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 

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plaint 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 


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33 

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. 

(5) NEEDY STATE.—For purposes of paragraph (4), a State is 

a needy State for a month if— 

(A) the average rate of— 

(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) 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) 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) 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) 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. 

(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); 


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34 

(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— 


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35 

(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. 

(c) SUBSIDIZED EMPLOYMENT DEMONSTRATION PROJECTS.— 

(1) IN GENERAL.—The Secretary shall make grants to States 

to conduct demonstration projects, at least one of which shall 

fund programs that offer apprenticeships registered under the 

Act of August 16, 1937 (commonly known as the ‘‘National Apprenticeship Act’’; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et 

seq.), designed to implement and evaluate strategies that provide wage subsidies to enable low-income individuals to enter 

into and retain employment. 

(2) APPLICATION REQUIREMENTS.—The Secretary shall require 

each State that applies for a grant under this subsection to do 

the following: 

(A) Describe how wage subsidies will be provided (such 

as whether paid directly to the employer or the individual), 

the duration of the subsidies, the amount of the subsidies, 

the structure of the subsidies, and how employers will be 

recruited to participate in the subsidized employment program. 

(B) Describe how the State expects those participating in 

subsidized employment to be able to retain employment 

after the subsidy ends. 

(C) Describe how the State will coordinate subsidized employment funded under this subsection with other efforts to 

help low-income individuals enter work as conducted by the 

State. 

(3) USE OF FUNDS.— (A) IN GENERAL.—A State to which a grant is made 

under this subsection may use the grant to subsidize the 

wages of an eligible recipient for a period not exceeding 12 

months, and only to the extent that the total of the funds 

paid under this project and any other Federal funds so 

used with respect to the recipient does not exceed 50 percent 

of the amount of the wages received by the recipient during 

the period. 

(B) ELIGIBLE RECIPIENT.—For purposes of subparagraph 

(A), an eligible recipient is— 

(i)(I) a recipient of 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)); or 

(II) a noncustodial parent of a minor child who is receiving assistance referred to in subclause (I); 

(ii) who, at the time the subsidy begins, is unemployed; and 


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36 

(iii) whose income, at that time, is less than 200 percent of 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))). 

(4) LIMITATIONS.— 

(A) NONDISPLACEMENT.—A State to which a grant is 

made under this subsection shall ensure that no participant in a subsidized job program funded in whole or in 

part under this subsection is employed or assigned to a job 

under the program— 

(i) when any other individual is on layoff from the 

same or any substantially equivalent job; or 

(ii) 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). 

(B) GRIEVANCE PROCEDURE.—A State with a program 

funded under this subsection shall establish and maintain 

a grievance procedure for resolving complaints of alleged 

violations of subparagraph (A). 

(C) NO PREEMPTION.—Nothing in this paragraph shall 

preempt or supersede any provision of State or local law 

that provides greater protection for employees from displacement. 

(5) REPORTS.—As a condition of receiving funds under this 

subsection for a fiscal year, a State shall submit to the Secretary, within 6 months after the end of the fiscal year, a report 

that— 

(A) specifies, for each month of the fiscal year, the number of individuals whose employment is subsidized with 

these funds; 

(B) describes the structure of the State activities to use 

the funds to subsidize employment, including the amount 

and duration of the subsidies provided; 

(C) specifies the percentage of eligible recipients who received a subsidy who are in unsubsidized employment during the second quarter after the subsidy ended; 

(D) specifies the percentage of eligible recipients who received a subsidy who are in unsubsidized employment during the fourth quarter after the subsidy ended; and 

(E) specifies the median earnings of eligible recipients 

who received a subsidy who are in unsubsidized employment during the second quarter after the subsidy ended. 

(6) EVALUATION.—The Secretary, in consultation with each 

State conducting a demonstration project, shall conduct a highquality evaluation of the demonstration project, and may reserve funds made available under this subsection to conduct the 

evaluation in accordance with the following: 

(A) EVALUATOR QUALIFICATIONS.—The Secretary may not 

enter into a contract with an evaluator unless the evaluator 

has demonstrated experience in conducting rigorous evaluations of program effectiveness including, where available 


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37 

and appropriate, well-implemented randomized controlled 

trials. 

(B) METHODOLOGIES TO BE USED.—The evaluation of a 

demonstration project 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. 

(C) PUBLIC DISCLOSURE.—The Secretary shall publish the 

results of the evaluation on the website of the Department 

of Health and Human Services in a location easily accessible by the public. 

(7) RECOMMENDATIONS TO CONGRESS.—The Secretary shall 

submit recommendations to the Committee on Ways and Means 

of the House of Representatives and the Committee on Finance 

of the Senate on how to increase the employment, retention, and 

advancement of individuals currently or formerly receiving assistance under 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)). 

(8) FUNDING.—Of the amounts made available to carry out 

subsection (b) for fiscal year 2018, the Secretary shall reserve 

$100,000,000 to carry out this subsection. 

(9) USE OF CERTAIN FUNDS FOR CAREER PATHWAY PRO- GRAMS.—The Secretary shall use 15 percent of the amounts reserved to carry out this subsection, to fund programs that offer 

career pathway (as defined in section 3(7) of the Workforce Innovation and Opportunity Act) services. 

(10) AVAILABILITY OF FUNDS.—Funds provided to a State 

under this subsection in a fiscal year shall be expended by the 

State in the fiscal year or in the succeeding fiscal year. 

* * * * * * * 


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(38) 

VII. ADDITIONAL VIEWS 

Democrats strongly support efforts to help welfare recipients gain 

the skills and support that they need to get good jobs that will lift 

their families out of poverty and into the middle class. Many of us 

have supported legislation to promote research on subsidized jobs, 

career pathways, and other effective education and training approaches for many years, especially for parents who are struggling. 

We also were pleased that the Majority acknowledged the potential 

of apprenticeship programs and accepted and supported Congresswoman DelBene’s amendment. 

Although more research is welcome and needed, there is already 

clear evidence about how to help individuals get good jobs and stay 

employed. Research already has demonstrated, for example, that 

education leading to a credential results in higher earnings and 

more stable employment. We also know that access to affordable, 

high-quality child care is key in supporting employment, which is 

why we oppose the President’s proposal to cut support for child 

care an estimated $438 million a year, in total, through his proposals to cut the Social Services Block Grant (SSBG), the Child 

Care Development Block Grant (CCDBG), and Temporary Assistance for Needy Families (TANF). 

We are concerned that this bill does not address the ways the 

TANF program has been increasingly failing families, a failure 

which certainly would not be solved by the Trump Administration’s 

proposal to arbitrarily cut TANF by $22 billion over the next decade. TANF currently serves only about one in four poor families, 

and states spend less than half of TANF funds on TANF’s core purposes—work, child care, and assistance to families. Specifically related to H.R. 2842, TANF puts states at risk of financial penalties 

if they help too many parents upgrade their education or their 

skills, including by participating in the kinds of evidence-based programs H.R. 2842 potentially would advance. 


lotter on DSKBCFDHB2PROD with REPORTS
39 

Democrats support gathering additional evidence of what works 

to help struggling parents find good jobs and move out of poverty. 

We also support helping Americans upgrade their skills right now 

to get better jobs and move up the economic ladder. That is why 

we oppose the President’s proposal to slash workforce development 

funding by almost 40 percent, and also why we urge the Majority 

to work with us to address the fundamental problems with TANF 

so that states can and do support parents working hard to get good 

jobs and support their families. 

RICHARD E. NEAL. JOHN LEWIS. JOHN B. LARSON. 

RON KIND. 

JOSEPH CROWLEY. 

LINDA T. SA ́ NCHEZ. 

TERRI A. SEWELL. 

JUDY CHU. 

SANDER LEVIN. MIKE THOMPSON. 

EARL BLUMENAUER. 

BILL PASCRELL, Jr. 

DANNY K. DAVIS. BRIAN HIGGINS. SUZAN K. DELBENE. 

Æ 


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