II 

116TH CONGRESS 

2D SESSION S. 4107 

To amend the Social Security Act to establish a new employment, training, 

and supportive services program for unemployed and underemployed individuals and individuals with barriers to employment, to provide employment services to individuals who are unemployed or underemployed as 

a result of COVID–19, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 30, 2020 

Mr. WYDEN (for himself, Ms. BALDWIN, Mr. VAN HOLLEN, Mr. BENNET, and 

Mr. BOOKER) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Social Security Act to establish a new employment, training, and supportive services program for unemployed and underemployed individuals and individuals 

with barriers to employment, to provide employment 

services to individuals who are unemployed or underemployed as a result of COVID–19, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; AMENDMENT TO SOCIAL SECU2 RITY ACT; TABLE OF CONTENTS. 

3 (a) SHORT TITLE.—This Act may be cited as the 

4 ‘‘Jobs for Economic Recovery Act of 2020’’. 

5 (b) AMENDMENTS TO SOCIAL SECURITY ACT.—Ex6 cept as otherwise specifically provided, whenever in this 

7 Act an amendment is expressed in terms of an amendment 

8 to or repeal of a section or other provision, the reference 

9 shall be considered to be made to that section or other 

10 provision of the Social Security Act. 

11 (c) TABLE OF CONTENTS.—The table of contents for 

12 this Act is as follows: 

Sec. 1. Short title; amendment to Social Security Act; table of contents. 

Sec. 2. Purpose. 

Sec. 3. Employment, training, and supportive services program. 

Sec. 4. Employee retention work opportunity credit. 

Sec. 5. Conforming amendments. 

Sec. 6. Effective date; regulations. 

13 SEC. 2. PURPOSE. 

14 The purposes of this Act are the following: 

15 (1) To provide immediate funding for sub16 sidized employment programs that will create job op17 portunities for individuals who have become unem18 ployed or underemployed as a result of COVID–19 

19 when it is safe to provide such opportunities, taking 

20 into account the need to prevent the spread or recur21 rence of COVID–19. 


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1 (2) To expand subsidized employment programs 

2 that reconnect unemployed and underemployed 

3 workers to the workforce. 

4 (3) To drive economic recovery by allowing for 

5 sufficient State and local flexibility to create or ex6 pand programs that place workers in jobs that fill 

7 community-specific workforce gaps and meet em8 ployer needs. 

9 (4) To prevent long-term joblessness and struc10 tural unemployment and provide work opportunities 

11 for individuals with barriers to employment. 

12 SEC. 3. EMPLOYMENT, TRAINING, AND SUPPORTIVE SERV13 ICES PROGRAM. 

14 (a) ESTABLISHMENT.—The Social Security Act (42 

15 U.S.C. 301 et seq.) is amended by inserting after title XII 

16 the following: 

17 ‘‘TITLE XIII—REEMPLOYMENT 

18 AND OTHER JOB-RELATED 

19 ASSISTANCE AND BENEFITS 

20 ‘‘SEC. 1301. PURPOSE; DEFINITIONS; ADMINISTRATION. 

21 ‘‘(a) PURPOSE.—The purpose of this title is to pro22 vide funds to States, Indian tribes, local governments, and 

23 nonprofit organizations to initiate and expand the provi24 sion of employment services, training and other services 


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1 and activities, and supportive services for eligible individ2 uals in order to— 

3 ‘‘(1) promote subsidized employment programs 

4 for public, private for-profit, private non-profit, and 

5 employment social enterprise sector jobs that enable 

6 unemployed or underemployed individuals to earn in7 come and connect to the workforce; 

8 ‘‘(2) expand the availability of jobs during eco9 nomic downturns or in areas with high unemploy10 ment or poverty; 

11 ‘‘(3) provide economically and socially disadvan12 taged individuals and individuals with barriers to 

13 employment (such as the long-term unemployed, 

14 people with criminal records, former foster youth, 

15 and other economically and socially disadvantaged 

16 populations) with wages and the ability to gain job 

17 experience; 

18 ‘‘(4) provide employers with new pathways into 

19 the workforce development system enabling them to 

20 have a greater role in the training and hiring of new 

21 workers and labor market re-entrants and facili22 tating their transition from subsidized job place23 ments to unsubsidized employment; and 

24 ‘‘(5) allow for sufficient flexibility for States, 

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1 nizations to design programs targeted at community2 specific workforce gaps and employer needs. 

3 ‘‘(b) DEFINITIONS.—In this title: 

4 ‘‘(1) ADULT AND DISLOCATED WORKER EM5 PLOYMENT AND TRAINING ACTIVITIES.—The term 

6 ‘adult and dislocated worker employment and train7 ing activities’ means adult and dislocated worker 

8 employment and training activities funded under 

9 chapter 3 of subtitle B of title I of the Workforce 

10 Innovation and Opportunity Act. 

11 ‘‘(2) DISLOCATED WORKER.—The term ‘dis12 located worker’ has the meaning given that term in 

13 section 3 of the Workforce Innovation and Oppor14 tunity Act. 

15 ‘‘(3) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

16 individual’ means an individual who, on the basis of 

17 an assessment by the State, has been determined to 

18 be unlikely to find unsubsidized employment due 

19 to— 

20 ‘‘(A) being an individual with a barrier to 

21 employment; 

22 ‘‘(B) being a dislocated worker; or 

23 ‘‘(C) a period of economic downturn or ad24 verse local or national economic conditions. 


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1 ‘‘(4) EMPLOYMENT SERVICES.—The term ‘em2 ployment services’ means a subsidized job placement 

3 (including a transitional job described in section 

4 134(d)(5) of the Workforce Innovation and Oppor5 tunity Act) in the public, private for-profit, private 

6 non-profit, or employment social enterprise sector 

7 and includes payment or reimbursement of employer 

8 subsidies for wages, the employer share of payroll 

9 taxes, employer costs for unemployment insurance, 

10 employer costs for workers’ compensation premiums, 

11 and costs attributable to supervision and other ad12 ministration directly related to the employment of an 

13 eligible individual in the subsidized job placement. 

14 ‘‘(5) INDIAN TRIBE.—The term ‘Indian tribe’ 

15 has the meaning given that term in section 419(4). 

16 ‘‘(6) INDIVIDUAL WITH A BARRIER TO EMPLOY17 MENT.—The term ‘individual with a barrier to em18 ployment’ has the meaning given that term in sec19 tion 3 of the Workforce Innovation and Opportunity 

20 Act and includes an individual who is an offender 

21 (as defined in such section). 

22 ‘‘(7) INTEGRATED EDUCATION AND TRAIN23 ING.—The term ‘integrated education and training’ 

24 has the meaning given that term in section 3 of the 

25 Workforce Innovation and Opportunity Act. 


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1 ‘‘(8) PAYROLL TAXES.—The term ‘payroll 

2 taxes’ means taxes under section 3111, 3221, 3301, 

3 or 3321 of the Internal Revenue Code of 1986, and 

4 any similar State or local tax imposed on employers. 

5 ‘‘(9) PERIOD OF ECONOMIC DOWNTURN.—The 

6 term ‘period of economic downturn’ means, with re7 spect to a State, a period of one or more consecutive 

8 months during which, for each month of such pe9 riod— 

10 ‘‘(A) the average rate of total unemploy11 ment in the United States (seasonally adjusted) 

12 for the most recent 3 months for which data is 

13 available is at least 5.5 percent; or 

14 ‘‘(B) the average rate of total unemploy15 ment in such State (seasonally adjusted) for the 

16 most recent 3 months for which data for all 

17 States is available is at least 5.5 percent. 

18 ‘‘(10) SUPPORTIVE SERVICES.— 

19 ‘‘(A) IN GENERAL.—The term ‘supportive 

20 services’ has the meaning given that term in 

21 section 3 of the Workforce Innovation and Op22 portunity Act. 

23 ‘‘(B) ADDITIONAL SERVICES.—Such term 

24 includes any of the following: 


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1 ‘‘(i) Stipends for an eligible individual 

2 provided with unpaid training services. 

3 ‘‘(ii) Legal services. 

4 ‘‘(iii) Other supplemental services nec5 essary for an eligible individual to partici6 pate in the State program funded under 

7 this title. 

8 ‘‘(11) STATE EXPENDITURES.—The term ‘State 

9 expenditures’ means all State or local funds that are 

10 expended by the State or a local agency including 

11 State or local funds that are matched or reimbursed 

12 by the Federal Government and State or local funds 

13 that are not matched or reimbursed by the Federal 

14 Government. 

15 ‘‘(12) TIER-1 PRACTICE.—Subject to subsection 

16 (c), the term ‘tier-1 practice’ means a practice 

17 that— 

18 ‘‘(A) offers a new or potentially effective 

19 strategy for addressing widely shared workforce 

20 challenges; and 

21 ‘‘(B) has not been systematically studied 

22 but is supported by a strong logic model. 

23 ‘‘(13) TIER-2 PRACTICE.—Subject to subsection 

24 (c), the term ‘tier-2 practice’ means a practice that 

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1 force strategy and provide more information about 

2 the feasibility of implementing proven workforce 

3 strategies in different contexts and is, with respect 

4 to a State— 

5 ‘‘(A) a practice that has been implemented 

6 by a State program and evaluated by a State or 

7 by a third party and the evaluation results indi8 cate potential for positive impacts on partici9 pant or system-wide outcomes; or 

10 ‘‘(B) a practice that has not been pre11 viously implemented by the State, but is sup12 ported by evidence of positive change and has 

13 been evaluated before using a pre- and post-as14 sessment comparison between intervention and 

15 comparison groups and suggests some statis16 tically significant evidence of positive change. 

17 ‘‘(14) TIER-3 PRACTICE.—Subject to subsection 

18 (c), the term ‘tier-3 practice’ means with respect to 

19 a State, a practice that— 

20 ‘‘(A) previously has been implemented by a 

21 program funded by a State; and 

22 ‘‘(B) previously has been evaluated using a 

23 random assignment or quasi-experimental de24 sign and the evaluation findings indicate some 


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1 statistically significant positive impacts on par2 ticipant or system wide outcomes. 

3 ‘‘(15) TRAINING AND OTHER SERVICES OR AC4 TIVITIES.—The term ‘training and other services or 

5 activities’ means any of the following services or ac6 tivities if provided in conjunction with, including in 

7 preparation for, a subsidized job placement and de8 termined by the State as necessary to significantly 

9 increase the likelihood that the job placement will be 

10 successful for the employer and employee and may 

11 improve the prospect of obtaining and retaining un12 subsidized jobs: 

13 ‘‘(A) Services provided through adult and 

14 dislocated worker employment and training ac15 tivities. 

16 ‘‘(B) Integrated education and training. 

17 ‘‘(C) Education directly related to employ18 ment. 

19 ‘‘(D) Vocational and employment services 

20 integrated with trauma-informed substance use 

21 disorder treatment, in collaboration with a sub22 stance use disorder treatment provider. 

23 ‘‘(E) Casework and job coaching. 

24 ‘‘(F) Union-provided employment services, 

25 including labor-management training. 


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1 ‘‘(c) OUTCOME MEASURES REQUIRED.—A practice 

2 shall not be considered to be a tier-1, tier-2, or tier-3 prac3 tice unless the practice is intended, studied, or evaluated 

4 for purposes of making meaningful improvements in vali5 dated measures of important outcomes for eligible individ6 uals and their families, such as recidivism, health, employ7 ment, and economic well-being over the short and long8 term. 

9 ‘‘(d) ADMINISTRATION.—Subject to section 1302(d), 

10 the program under this title shall be administered by the 

11 Secretary through the Assistant Secretary for the Admin12 istration for Children and Families within the Department 

13 of Health and Human Services and in consultation with 

14 the Secretary of Labor as appropriate. 

15 ‘‘(e) APPROPRIATED ENTITLEMENT.— 

16 ‘‘(1) IN GENERAL.—This title establishes an en17 titlement to payments under this title for States, In18 dian tribes and tribal consortiums, and local govern19 ments with plans approved under this title. 

20 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

21 There are authorized to be appropriated to the Sec22 retary to carry out this title for each fiscal year be23 ginning with fiscal year 2020, such sums as are nec24 essary. 


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1 ‘‘SEC. 1302. STATE PLAN REQUIREMENTS. 

2 ‘‘(a) IN GENERAL.—A State is not eligible for pay3 ment under section 1304 unless the State has submitted 

4 to the Secretary a plan that describes— 

5 ‘‘(1) the State’s strategy for creating or ex6 panding programs that offer subsidized employment 

7 for eligible individuals and moving such individuals 

8 into unsubsidized employment; 

9 ‘‘(2) how such strategy fits with the State’s 

10 overall strategy for, and assessment of, the State’s 

11 workforce needs; 

12 ‘‘(3) the employment services, training and 

13 other services or activities, and supportive services to 

14 be provided under the State program funded under 

15 this title; 

16 ‘‘(4) which specific populations of eligible indi17 viduals the State will serve, with a focus on how the 

18 State plans to assess and serve the eligible individ19 uals with serious or multiple barriers to employment; 

20 ‘‘(5) the strategies the State will use for out21 reach and engagement with the populations specified 

22 under paragraph (4) to ensure that such populations 

23 are aware of subsidized employment opportunities in 

24 their community; 

25 ‘‘(6) the strategies the State will use to ensure 

26 that its programs do not systematically exclude the 


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1 eligible individuals with the greatest barriers to em2 ployment; 

3 ‘‘(7) the strategies the State will use for out4 reach, engagement, and ongoing collaboration with 

5 employers to promote employers’ use of the program 

6 and ensure employers have the training necessary to 

7 support eligible individuals; 

8 ‘‘(8) the strategies the State will use to create 

9 employment plans for eligible individuals partici10 pating in the State program funded under this title 

11 and, based on such plans, provide eligible individuals 

12 with employment services, training and other serv13 ices and activities, and supportive services; 

14 ‘‘(9) how the State will coordinate the State 

15 program funded under this title with other relevant 

16 systems and programs based on the populations 

17 identified which may include criminal justice, child 

18 support, juvenile justice, child welfare, homeless 

19 services, unemployment insurance, and other human 

20 services and workforce development programs of the 

21 State, including programs supported through the 

22 Workforce Innovation and Opportunity Act; 

23 ‘‘(10) how the State will ensure employers par24 ticipating in the program comply with the non25 displacement requirements of section 1305(c); 


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1 ‘‘(11) a plan for regular, well-executed evalua2 tion of the State program funded under this title, in3 cluding how the State plans to measure program 

4 outcomes and impacts and whether the State plans 

5 to employ a quasi-experimental or experimental re6 search design; 

7 ‘‘(12) how the State will address gaps in em8 ployment and earnings by race, ethnicity, age, and 

9 gender and collect data to measure progress in ad10 dressing those gaps; 

11 ‘‘(13) how the State will incorporate feedback 

12 from eligible individuals participating in the State 

13 program to improve the program over time; and 

14 ‘‘(14) such information about other aspects of 

15 the plan as the Secretary may request. 

16 ‘‘(b) OTHER REQUIREMENTS.—The State shall in17 clude with the plan a certification that supportive services 

18 for eligible individuals will supplement, and not supplant, 

19 other assistance provided by the State. 

20 ‘‘(c) DEADLINES FOR SUBMISSION.— 

21 ‘‘(1) INITIAL PLAN.—The initial State plan 

22 under this section shall be submitted by the State 

23 agency or agencies responsible for administering the 

24 State program under this title to the Secretary not 

25 later than 90 days prior to the commencement of the 


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1 State program funded under this title and shall be 

2 for the period beginning on the first day of the com3 mencement of the State program funded under the 

4 title and ending on the day that is the last day of 

5 the period covered by the unified State plan or com6 bined State plan submitted by the State under sec7 tion 102 or 103 of the Workforce Innovation and 

8 Opportunity Act that is in effect as of the date of 

9 submission. 

10 ‘‘(2) SUBSEQUENT PLANS.—Each State plan 

11 submitted under this section after the initial State 

12 plan shall be submitted at the same time and apply 

13 for the same period, as a unified State plan or a 

14 combined State plan submitted by the State under 

15 section 102 or 103 of the Workforce Innovation and 

16 Opportunity Act. 

17 ‘‘(3) APPROVAL.—Each State plan submitted 

18 under this section by the State agency or agencies 

19 responsible for administering the State program 

20 under this title, and any amendments to the plan, 

21 shall be subject to the approval of the Secretary, in 

22 consultation with the Secretary of Labor as appro23 priate. 

24 ‘‘(d) STATE AGENCY.—At the option of the State, the 

25 program funded under this title shall be administered by 


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1 the lead State agency responsible for administering the 

2 State program funded under part A of title IV, the lead 

3 State agencies responsible for administering the adult and 

4 dislocated worker employment and training activities of 

5 the State, or jointly by such agencies. 

6 ‘‘SEC. 1303. USE OF FUNDS. 

7 ‘‘(a) AUTHORIZED USES.— 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

9 State shall use funds paid under section 1304 to 

10 provide eligible individuals with— 

11 ‘‘(A) employment services; 

12 ‘‘(B) training and other services and activi13 ties; and 

14 ‘‘(C) supportive services while eligible indi15 viduals are provided with employment services 

16 and training and other services and activities. 

17 ‘‘(2) SPENDING REQUIREMENT.—Not less than 

18 70 percent of the total amount paid to a State for 

19 a fiscal year quarter shall be for expenditures attrib20 utable to employment services that are payment for 

21 or reimbursement of employer costs for wages, the 

22 employer share of payroll taxes, employer costs for 

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1 provided on-the-job training for subsidized job place2 ments of eligible individuals. 

3 ‘‘(3) TRAINING.—A State may use such funds 

4 for training employers, agency personnel, and other 

5 individuals related to the administration of the State 

6 program funded under this title on issues related to 

7 providing eligible individuals with employment serv8 ices, training and other services and activities, and 

9 supportive services. 

10 ‘‘(4) ADMINISTRATIVE COSTS.—Subject to sec11 tion 1304(e), a State may use such funds for the 

12 proper and efficient administration of the State pro13 gram funded under this title. 

14 ‘‘(b) EVIDENCE-BASED PRACTICES AND ACTUAL JOB

15 PLACEMENTS REQUIRED.— 

16 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

17 only State expenditures for employment services, 

18 training and other services and activities, and sup19 portive services provided to eligible individuals that 

20 meet the following conditions shall be eligible for a 

21 Federal matching payment under section 1304: 

22 ‘‘(A) The employment services, training 

23 and other services and activities, supportive 

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1 tices that meet the requirements for being con2 sidered a tier-1, tier-2, or tier-3 practice. 

3 ‘‘(B) The State can demonstrate that the 

4 employment services, training and other serv5 ices and activities, and supportive services pro6 vided for an eligible individual resulted in em7 ployment (subsidized or unsubsidized) for the 

8 eligible individual, or can demonstrate good 

9 cause for why the job placement or employment 

10 did not occur, which may include the failure of 

11 an employer or an eligible individual to carry 

12 out the employer’s or individual’s commitments 

13 to the State program. 

14 ‘‘(2) TIER-2 OR TIER-3 PRACTICES.—Beginning 

15 with the 21st fiscal year quarter for which the State 

16 carries out the program funded under this title, not 

17 less than 50 percent of the total amount expended 

18 by the State for the quarter shall be for employment 

19 services, training and other services and activities, 

20 and supportive services provided in accordance with 

21 practices that meet the requirements for being con22 sidered a tier-2 or tier-3 practice. 

23 ‘‘(3) PERIODS OF ECONOMIC DOWNTURN.—The 

24 Secretary may waive any of the limitations on eligi25 ble expenditures under paragraphs (1) and (2) with 


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1 respect to one or more State programs funded under 

2 this title during any period of economic downturn in 

3 the State. 

4 ‘‘(c) EVALUATIONS.—A State shall be eligible to re5 ceive a payment under section 1304 for budgeted expendi6 tures attributable to evaluating the State program funded 

7 under this title if— 

8 ‘‘(1) the State submits to the Secretary a de9 scription of and budget for the proposed evaluation; 

10 and 

11 ‘‘(2) the Secretary determines that— 

12 ‘‘(A) the budget for the proposed evalua13 tion is justifiable; and 

14 ‘‘(B) the design and approach of the pro15 posed evaluation is rigorous, will use data to 

16 statistically measure program outcomes and im17 pacts, and is likely to yield information that is 

18 credible and will be useful to the State. 

19 ‘‘SEC. 1304. PAYMENTS TO STATES. 

20 ‘‘(a) PAYMENTS TO STATES.—Subject to section 

21 1303 and subsections (b) and (c) of this section, beginning 

22 with the first fiscal year quarter for which a State plan 

23 is approved under this title, and for each quarter there24 after, the Secretary shall pay each State, out of any money 

25 in the Treasury not otherwise appropriated, an amount 


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1 equal to the Federal medical assistance percentage that 

2 applies for the fiscal year to the State under section 

3 1905(b) (without regard to any adjustments to such per4 centage applicable under that section or any other provi5 sion of law) of the total amount expended by the State 

6 during the quarter to provide eligible individuals with em7 ployment services, training and other services and activi8 ties, and supportive services and, subject to subsection (e), 

9 for the proper and efficient administration of the program 

10 funded under this title. 

11 ‘‘(b) INCREASED FEDERAL SUPPORT DURING ECO12 NOMIC DOWNTURNS.— 

13 ‘‘(1) INCREASED FMAP.— 

14 ‘‘(A) IN GENERAL.—Beginning with any 

15 fiscal year quarter for which the total unem16 ployment in a State (seasonally adjusted) for 

17 the period consisting of the most recent 3 

18 months for which data for all States are pub19 lished equals or exceeds the applicable percent20 age specified in paragraph (2), the Federal 

21 medical assistance percentage applicable to pay22 ments made under subsection (a) to the State 

23 for the quarter shall be increased by the appli24 cable number of percentage points specified in 

25 paragraph (2), except that in no case shall the 


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1 Federal medical assistance percentage applica2 ble to payments under subsection (a) for a 

3 State for a quarter exceed 100 percent. 

4 ‘‘(B) DURATION.— 

5 ‘‘(i) IN GENERAL.—Subject to clause 

6 (ii), an increase in the Federal medical as7 sistance percentage made in accordance 

8 with this subsection shall remain in effect 

9 with respect to payments made to a State 

10 under subsection (a) for at least 4 consecu11 tive fiscal year quarters. 

12 ‘‘(ii) ADDITIONAL INCREASE IN UNEM13 PLOYMENT.—If during the period for 

14 which the Federal medical assistance per15 centage for a State is increased under this 

16 subsection, the total unemployment in the 

17 State (seasonally adjusted) for the period 

18 consisting of the most recent 3 months for 

19 which data for all States are published ex20 ceeds the applicable total unemployment 

21 rate that was the basis for such increase, 

22 the increase in the Federal medical assist23 ance percentage shall be the applicable 

24 number of percentage points specified in 

25 paragraph (2) that corresponds to the 


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1 most recent percentage of total unemploy2 ment in the State, beginning with the first 

3 fiscal year quarter for which such percent4 age of total unemployment occurs and con5 tinuing for 3 succeeding fiscal year quar6 ters. 

7 ‘‘(2) APPLICABLE PERCENTAGE; APPLICABLE

8 NUMBER OF PERCENTAGE POINTS.—For purposes of 

9 paragraph (1), if the total unemployment in a State 

10 (seasonally adjusted) for the period consisting of the 

11 most recent 3 months for which data for all States 

12 are published is— 

13 ‘‘(A) equal to or greater than 5.5 percent 

14 but less than 6 percent, the applicable number 

15 of percentage points is 20; 

16 ‘‘(B) equal to or greater than 6 percent 

17 but less than 6.5 percent, the applicable num18 ber of percentage points is 30; 

19 ‘‘(C) equal to or greater than 6.5 percent 

20 but less than 7 percent, the applicable number 

21 of percentage points is 40; and 

22 ‘‘(D) equal to or greater than 7 percent, 

23 the applicable number of percentage points is 

24 50. 


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1 ‘‘(c) MAINTENANCE OF EFFORT.—As a condition of 

2 receiving payments under this section for a fiscal year— 

3 ‘‘(1) the total amount of State expenditures for 

4 employment services, training and other services and 

5 activities, and supportive services provided through 

6 the adult and dislocated worker employment and 

7 training activities of the State for the fiscal year 

8 shall not be less than the amount of such expendi9 tures for fiscal year 2019; and 

10 ‘‘(2) the total amount of State expenditures for 

11 work, education, and training activities and work 

12 supports under the State program funded under 

13 part A of title IV shall not be less than the total 

14 amount of such State expenditures for the preceding 

15 fiscal year. 

16 ‘‘(d) ADMINISTRATION OF PAYMENTS.— 

17 ‘‘(1) IN GENERAL.—Prior to the beginning of 

18 each fiscal quarter, the Secretary shall estimate the 

19 amount to which a State will be entitled under this 

20 section for such quarter, based on— 

21 ‘‘(A) a report filed by the State containing 

22 its estimate of the total sum to be expended in 

23 such quarter to provide eligible individuals with 

24 employment services, training and other serv25 ices and activities, and supportive services 


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1 through the program funded under this title; 

2 and 

3 ‘‘(B) such other investigation as the Sec4 retary may find necessary. 

5 ‘‘(2) PAYMENTS.—The Secretary shall then pay 

6 to the State, in such installments as the Secretary 

7 shall determine, the amount so estimated, reduced or 

8 increased to the extent of any overpayment or un9 derpayment which the Secretary determines was 

10 made under this section to such State for any prior 

11 quarter and with respect to which adjustment has 

12 not already been made under this subsection. 

13 ‘‘(e) LIMITATION.—Beginning with the fifth fiscal 

14 year quarter for which a State plan is approved under this 

15 title, and for each quarter thereafter, a State shall not 

16 receive a payment under this section for amounts ex17 pended by the State during the quarter for the proper and 

18 efficient administration of the program funded under this 

19 title that exceed the amount equal to 15 percent of the 

20 amount expended by the State during the quarter to pro21 vide eligible individuals with employment services, training 

22 and other services and activities, and supportive services. 

23 ‘‘(f) PLANNING AND IMPLEMENTATION GRANTS; 

24 TECHNICAL ASSISTANCE.— 


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1 ‘‘(1) IN GENERAL.—In addition to amounts 

2 available to make payments to States under sub3 section (a), the Secretary shall make grants to 

4 States, Indian tribes (or intertribal consortiums with 

5 a tribal family assistance plan approved under sec6 tion 412), and local governments for costs attrib7 utable to the planning and implementation of a 

8 State or tribal program funded under this title and 

9 shall provide technical assistance to States and In10 dian tribes with respect to the planning and imple11 mentation of such a program. 

12 ‘‘(2) REQUIREMENTS.— 

13 ‘‘(A) COMMUNITY ENGAGEMENT.—As a 

14 condition of receiving a grant under this sub15 section, a State or Indian tribe shall engage 

16 local communities, including focus groups of 

17 target populations of eligible individuals and 

18 employers, in the planning and implementation 

19 of the State or tribal program funded under 

20 this title. 

21 ‘‘(B) 2-YEAR LIMIT.—No State or Indian 

22 tribe shall receive a grant under this subsection 

23 for more than 8 quarters. 


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1 ‘‘(C) NO MATCHING PAYMENT RE2 QUIRED.—No matching payment shall apply to 

3 the grants made under this subsection. 

4 ‘‘SEC. 1305. OTHER PROGRAM REQUIREMENTS. 

5 ‘‘(a) ASSESSMENT AND EMPLOYMENT PLAN.— 

6 ‘‘(1) IN GENERAL.—The State shall establish 

7 procedures to— 

8 ‘‘(A) assess, within 30 days of determining 

9 that an individual is an eligible individual, the 

10 eligible individual’s job skills, education, past 

11 work experience, and potential barriers to em12 ployment; and 

13 ‘‘(B) create, based on such assessment, an 

14 individualized employment plan for each eligible 

15 individual participating in the program that— 

16 ‘‘(i) specifies— 

17 ‘‘(I) the initial plan for the eligi18 ble individual, including whether the 

19 eligible individual is to immediately 

20 begin working in a subsidized job or 

21 needs training and other services and 

22 activities, or supportive services before 

23 that placement can occur; and 

24 ‘‘(II) the employment services 

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1 dividual, as well as the training and 

2 other services and activities, and sup3 portive services that will be provided 

4 to the eligible individual while the eli5 gible individual is working in a sub6 sidized job; and 

7 ‘‘(ii) provides that, near the end of the 

8 individual’s initial placement in a sub9 sidized job, an assessment will be made re10 garding whether the eligible individual will 

11 be converted to a permanent, unsubsidized 

12 employee, and if not, the job search assist13 ance and additional employment services, 

14 training and other services and activities, 

15 and supportive services that will be pro16 vided to the eligible individual with the 

17 goal of obtaining and retaining unsub18 sidized employment. 

19 ‘‘(2) NO DISCRIMINATION AGAINST INDIVID20 UALS WITH HIGHEST BARRIERS TO EMPLOYMENT.— 

21 The State shall ensure that the procedures estab22 lished under paragraph (1) do not result in an eligi23 ble individual being disqualified from receiving em24 ployment services on the basis of the individual’s 

25 barriers to employment. 


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1 ‘‘(3) NONDISCRIMINATION.—The State shall en2 sure that the procedures established under para3 graph (1) do not have the effect of making any eligi4 ble individual less likely to receive employment serv5 ices on the basis of the individual’s race, sex, reli6 gious creed, national origin, or political affiliation. 

7 ‘‘(b) EMPLOYMENT STANDARDS AND CRITERIA FOR

8 SUBSIDIZED JOBS.— 

9 ‘‘(1) GENERAL REQUIREMENTS.—Any sub10 sidized job placement for an eligible individual par11 ticipating in the State program funded under this 

12 title shall satisfy the following requirements: 

13 ‘‘(A) Employment services that are pay14 ment for or reimbursement of employer costs 

15 may only be used by an employer in the public, 

16 private for-profit, private non-profit, or employ17 ment social enterprise sector for costs that are 

18 attributable to the hiring of, compensation for, 

19 or on-the-job training of, the eligible individual. 

20 ‘‘(B) An employer in the public, private 

21 for-profit, private non-profit, or employment so22 cial enterprise sector shall not be paid a subsidy 

23 that exceeds 120 percent of wage costs. 


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1 ‘‘(C) An eligible individual in a subsidized 

2 job placement shall be paid at a rate that is not 

3 less than whichever of the following is highest: 

4 ‘‘(i) the minimum hourly wage rate 

5 applicable to the individual under the laws 

6 of the State or locality in which the indi7 vidual is employed; 

8 ‘‘(ii) the wage rate applicable under 

9 section 6 of the Fair Labor Standards Act 

10 of 1938 (29 U.S.C. 206); 

11 ‘‘(iii) if determined appropriate by the 

12 State program funded under this title, the 

13 prevailing wage rate in the locality in 

14 which the individual is employed as deter15 mined by the Secretary of Labor, based on 

16 area surveys of wage rates conducted by 

17 the Department of Labor; and 

18 ‘‘(iv) where a collective-bargaining 

19 agreement covers employees at the site of 

20 the subsidized job placement, a rate set for 

21 the eligible individual in accordance with 

22 the rates provided for in the agreement, in23 cluding prospective wage increases pro24 vided for in the agreement. 


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1 ‘‘(D) An eligible individual in a subsidized 

2 job placement shall be covered by all relevant 

3 labor and employment laws. 

4 ‘‘(E) Subject to paragraph (5), a sub5 sidized job placement for an eligible individual 

6 shall not exceed 6 months unless the placement 

7 is extended for not more than 6 additional 

8 months for purposes of improving the work ex9 perience, training and other services and activi10 ties, and supportive services needs of an eligible 

11 individual with less prior work experience, more 

12 skill development and training needs, or greater 

13 employment barriers. 

14 ‘‘(F) Employers participating in the State 

15 program agree to make a good faith effort to 

16 hire an eligible individual placed in a subsidized 

17 job in their employment if the individual has 

18 demonstrated satisfactory performance and the 

19 employer has a relevant job opening available 

20 and to maintain a record of the share of sub21 sidized workers hired to unsubsidized positions 

22 on a permanent basis. 

23 ‘‘(G) Employers shall ensure that the site 

24 of employment is a location where an eligible 

25 individual in a subsidized job placement who is 


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1 an individual with a disability, as defined in 

2 section 7 of the Rehabilitation Act of 1973 (29 

3 U.S.C. 705), interacts with other persons who 

4 are not such individuals with disabilities (not 

5 including supervisory personnel or individuals 

6 who are providing services to such worker) to 

7 the same extent as individuals who are not such 

8 individuals with disabilities and who are in com9 parable positions interact with other persons. 

10 ‘‘(H) For a site of employment at which 

11 workers are covered by a collective bargaining 

12 agreement, no subsidized job placement shall be 

13 made at the site without the consent of all labor 

14 organizations representing workers at such site. 

15 ‘‘(I) In a case where the State is consid16 ering placing an eligible individual with an em17 ployer who has previously participated in the 

18 State program, the State shall consider feed19 back from workers previously placed with that 

20 employer when determining whether to continue 

21 placing eligible individuals in subsidized jobs 

22 with that employer. 

23 ‘‘(J) A subsidized job placement in a gov24 ernment agency shall be subject to the same 


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1 civil service protections otherwise applicable to 

2 similar jobs at such agency. 

3 ‘‘(K) An eligible individual who works on 

4 average at least 30 hours of service per week in 

5 a subsidized job placement with an employer 

6 shall be treated as a full-time employee of such 

7 employer for purposes of section 4980H of the 

8 Internal Revenue Code of 1986. 

9 ‘‘(2) EMPLOYER OF RECORD.— 

10 ‘‘(A) IN GENERAL.—With respect to eligi11 ble individuals in subsidized job placements, the 

12 employer of record may be— 

13 ‘‘(i) the employer for whom the indi14 vidual performs work; 

15 ‘‘(ii) the State or a political subdivi16 sion of the State; or 

17 ‘‘(iii) a third party that has entered 

18 into an agreement with the State to serve 

19 as the employer of record with respect to 

20 eligible individuals participating in the 

21 State program funded under this title. 

22 ‘‘(B) EVALUATIONS.—If the employer of 

23 record with respect to an eligible individual in 

24 a subsidized job placement is not the employer 

25 for whom the individual performs work, any 


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1 employer evaluation required under this title 

2 with respect to such job placement shall include 

3 an evaluation of both the employer of record 

4 and the employer for whom the individual per5 forms work. 

6 ‘‘(3) LIMITATION ON SUBSIDIZED JOB PLACE7 MENTS PER EMPLOYER.— 

8 ‘‘(A) IN GENERAL.—No more than 10 per9 cent of the employees of an employer may be el10 igible individuals whose employment with such 

11 employer is subsidized under this title, except 

12 that— 

13 ‘‘(i) an employer with fewer than 10 

14 employees may employ one such individual; 

15 ‘‘(ii) an employer with more than 500 

16 employees may not employ more than 50 

17 such individuals; 

18 ‘‘(iii) there shall be no limitation on 

19 the number of subsidized job placements 

20 per employer if the employer’s mission, as 

21 reviewed and evaluated by the State on an 

22 annual basis, includes the provision of em23 ployment services, training and other serv24 ices and activities, or supportive services to 

25 individuals with barriers to employment, 


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1 subject to the State program’s annual re2 view of the outcomes and experiences of el3 igible individuals in subsidized job place4 ments with the employer. 

5 ‘‘(B) APPLICATION TO EMPLOYERS OF

6 RECORD.—For purposes of the limitations de7 scribed in subparagraph (A), if an eligible indi8 vidual in a subsidized job placement performs 

9 work for an employer that is not the individ10 ual’s employer of record— 

11 ‘‘(i) the individual shall not be consid12 ered to be employed by the employer of 

13 record; and 

14 ‘‘(ii) the individual shall be considered 

15 to be employed by the employer for whom 

16 the individual performs work. 

17 ‘‘(4) ADDITIONAL PLACEMENTS.—If, after com18 pleting a subsidized job placement, an eligible indi19 vidual is unemployed for at least 4 weeks (regardless 

20 of whether such weeks are consecutive), the eligible 

21 individual may apply for a new subsidized job place22 ment but the immediately subsequent placement 

23 may only be with a different employer (but may be 

24 with the same employer of record, provided that the 

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1 ployer than the employer for whom the individual 

2 performed work in the previous subsidized job place3 ment). 

4 ‘‘(5) STATE VARIATION PERMITTED.—Employer 

5 subsidies for a subsidized job placement may vary 

6 within a State and among States carrying out pro7 grams under this title provided that all eligible indi8 viduals employed in subsidized jobs shall be paid not 

9 less than the rate specified in subsection (b)(1)(C) 

10 and shall be covered by all relevant labor and em11 ployment laws. 

12 ‘‘(6) EXCEPTIONS.—With respect to any period 

13 for which the total unemployment in a State (sea14 sonally adjusted) for the period consisting of the 

15 most recent 3 months for which data for all States 

16 are published equals or exceeds 5.5 percent, the Sec17 retary may waive the limit on the duration of a sub18 sidized job placement under paragraph (1)(E). 

19 ‘‘(c) NONDISPLACEMENT.—An employer shall not use 

20 an eligible individual subsidized job placement if— 

21 ‘‘(1) employing such individual will result in the 

22 layoff or partial displacement (such as a reduction 

23 in hours, wages, or employment benefits) of an exist24 ing employee or position of the employer; 


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1 ‘‘(2) such individual will assume any of the du2 ties or responsibilities of an employee who is partici3 pating in a strike, collective bargaining, or union or4 ganizing; 

5 ‘‘(3) employing such individual infringes upon 

6 the promotional opportunities of an existing em7 ployee of the employer; or 

8 ‘‘(4) such individual will perform the same work 

9 or substantially the same work as that performed by 

10 any individual who has been laid off or partially dis11 placed and has not received an offer from the em12 ployer to be restored to the position the employee 

13 had immediately prior to being laid off or partially 

14 displaced. 

15 ‘‘(d) GRIEVANCE PROCEDURES.—The State shall es16 tablish and maintain a procedure for the filing and adju17 dication of grievances from eligible individuals, labor orga18 nizations, and other interested individuals concerning par19 ticipating employers, including grievances relating to pro20 posed placements of eligible workers with such employers. 

21 ‘‘SEC. 1306. REPORTS; TECHNICAL ASSISTANCE; RESEARCH; 

22 AUDIT REQUIREMENT. 

23 ‘‘(a) QUARTERLY REPORTS.— 

24 ‘‘(1) STATE REPORTS.—A State shall submit 

25 with each quarterly report required under section 


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1 411(a)(1) a report on the State program funded 

2 under this title that contains such data and informa3 tion as the Secretary shall require. 

4 ‘‘(2) REPORTS TO CONGRESS.—The Secretary 

5 shall submit with each annual report to Congress re6 quired under section 411(b) a report on the State 

7 programs funded under this title. 

8 ‘‘(b) ONGOING PERFORMANCE ASSESSMENT.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall study 

10 and submit annual reports to Congress that— 

11 ‘‘(A) measure the performances of the 

12 State programs funded under this title; 

13 ‘‘(B) include information about the cat14 egories of individuals and employers served by 

15 such programs and projects, including the ex16 tent to which the State is serving the individ17 uals with the greatest barriers to employment; 

18 and 

19 ‘‘(C) describe the activities eligible individ20 uals engaged in during the year and evaluate 

21 the quality of the services provided under such 

22 programs. 

23 ‘‘(2) TIMING OF SUBMISSIONS.—The Secretary 

24 shall submit the reports required by paragraph 

25 (1)— 


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1 ‘‘(A) in the case of the first such report, 

2 2 years after the date on which the first State 

3 program funded under this title is established; 

4 and 

5 ‘‘(B) in the case of subsequent reports, an6 nually thereafter. 

7 ‘‘(c) ALIGNMENT WITH WORKFORCE INNOVATION

8 AND OPPORTUNITY ACT PROGRAMS.—The Secretary shall 

9 coordinate with the Secretary of Labor on aligning per10 formance measures and regulations for the State pro11 grams funded under this title with the performance meas12 ures and regulations applicable to the core programs of 

13 States funded under the Workforce Innovation and Oppor14 tunity Act. 

15 ‘‘(d) INDIVIDUAL ELIGIBILITY ASSESSMENT GUID16 ANCE.—The Secretary, in consultation with the Secretary 

17 of Labor as appropriate, shall study and issue guidance 

18 to States on best practices for assessing whether an indi19 vidual satisfies the criteria for being an eligible individual 

20 under section 1301(b)(3) as being unlikely to find unsub21 sidized employment due to individual barriers, the individ22 ual’s status as a displaced worker, or economic conditions 

23 in the State in which the individual lives or works. 

24 ‘‘(e) NEW PERFORMANCE MEASURES.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall create 

2 new performance measures that address income and 

3 earnings gains, job quality improvement, and pov4 erty reduction (relative to both the official poverty 

5 line and the supplemental poverty measure) for eligi6 ble individuals participating in the State program 

7 funded under this title and the families of such indi8 viduals. Such performance measures shall be in ad9 dition to the performance accountability measures 

10 under section 116(b) of the Workforce Innovation 

11 and Opportunity Act for the adult and dislocated 

12 worker employment and training activities of the 

13 State and aligned with the State program funded 

14 under this title. 

15 ‘‘(2) PROGRAM ACCESS.—The Secretary shall 

16 create a measure of program access to determine the 

17 extent to which States are serving individuals with 

18 the greatest barriers to employment and the portion 

19 of State caseloads that are made up of such workers. 

20 ‘‘(f) COORDINATION OF DATA COLLECTION.— 

21 ‘‘(1) IN GENERAL.—The Secretary, in consulta22 tion with the Secretary of Labor, shall determine the 

23 data States shall collect and report regarding the 

24 State program funded under this title and the extent 

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1 quired evaluations, can be coordinated with the data 

2 collection, reporting, and evaluations required for 

3 the State program funded under part A of title IV 

4 and the performance accountability measures under 

5 section 116(b) of the Workforce Innovation and Op6 portunity Act for the adult and dislocated worker 

7 employment and training activities of the State. 

8 ‘‘(2) COORDINATION WITH OTHER EFFORTS.— 

9 The Secretary, in consultation with the Secretary of 

10 Labor and the Secretary of Education, shall assure 

11 that the data collected under this title aligns as 

12 much as possible with efforts to collect longitudinal 

13 data related to the performance of education, train14 ing, and workforce programs. 

15 ‘‘(g) DISAGGREGATED DATA.—Data collected and 

16 submitted under this section shall be disaggregated by 

17 race, ethnicity, age, gender, and occupational category. 

18 ‘‘(h) FUNDING.—The Secretary shall use funding 

19 made available under section 413(h)(1) for research, tech20 nical assistance, and evaluation to conduct the perform21 ance assessments required under subsection (b). 

22 ‘‘(i) INSPECTOR GENERAL AUDIT.—The Inspector 

23 General of the Department of Health and Human Services 

24 shall biennially audit a sample of the State programs 

25 funded under this title to ensure compliance with program 


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1 requirements, including compliance with the nondisplace2 ment requirements of section 1305(c), and to identify and 

3 protect against any waste, fraud, or abuse in such pro4 grams. 

5 ‘‘SEC. 1307. DIRECT FUNDING AND ADMINISTRATION FOR 

6 PROGRAMS OPERATED BY INDIAN TRIBES. 

7 ‘‘(a) IN GENERAL.—An Indian tribe or intertribal 

8 consortium with a tribal family assistance plan approved 

9 under section 412 (or any Indian tribe that is a member 

10 of such a consortium) that proposes to establish a pro11 gram under this title shall submit an application to the 

12 Secretary to directly receive payments for expenditures 

13 made to carry out the program (in this section referred 

14 to as a ‘tribal program application’). 

15 ‘‘(b) TRIBAL PROGRAM APPLICATION REQUIRE16 MENTS.—Subject to subsection (c), a tribal program appli17 cation shall include a plan that meets the requirements 

18 of section 1302 in the same manner as such requirements 

19 apply to a State. 

20 ‘‘(c) PROGRAM REQUIREMENTS.—The program re21 quirements specified in this title shall apply to an Indian 

22 tribe or intertribal consortium with a tribal program appli23 cation and plan approved under this section in the same 

24 manner as such requirements apply to a State except to 

25 the extent that an Indian tribe or intertribal consortium 


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1 requests, and the Secretary approves, a waiver or modi2 fication of any such requirements. 

3 ‘‘(d) PAYMENTS.— 

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

5 the Secretary shall pay an Indian tribe or intertribal 

6 consortium with a tribal program application and 

7 plan approved under this section in the same man8 ner as States are paid under section 1304. 

9 ‘‘(2) APPLICATION OF TRIBAL FMAP.—The 

10 Federal medical assistance percentage that would 

11 apply under subsection (d) of section 479B if an In12 dian tribe or tribal consortium operated a program 

13 under that section (in this subsection referred to as 

14 the ‘tribal FMAP’), shall apply to payments made to 

15 the Indian tribe or tribal consortium for expendi16 tures attributable to carrying out a program under 

17 this title, unless the tribal FMAP is less than the 

18 Federal medical assistance percentage that applies 

19 to the State in which the Indian tribe or tribal con20 sortium is located in which case the State Federal 

21 medical assistance percentage shall apply. In the 

22 case of an Indian tribe or tribal consortium that is 

23 located in more than one State, the State in which 

24 the Indian tribe or tribal consortium is located that 


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1 has the highest Federal medical assistance percent2 age shall apply to the preceding sentence. 

3 ‘‘SEC. 1308. DIRECT FUNDING AND ADMINISTRATION FOR 

4 PROGRAMS OPERATED BY LOCAL GOVERN5 MENTS. 

6 ‘‘(a) IN GENERAL.—The Secretary shall establish 

7 procedures under which a local government, or a consor8 tium of local governments within a State, may submit an 

9 application to the Secretary to establish a program under 

10 this title and directly receive payments for expenditures 

11 made to carry out the program (in this section referred 

12 to as a ‘local government program application’), if— 

13 ‘‘(1) the State in which the local government or 

14 consortium is located has not elected to establish a 

15 State program under this title; or 

16 ‘‘(2) the local government or consortium can 

17 demonstrate that a local program would meet a need 

18 or serve a population that is not met or sufficiently 

19 served by the State program under this title. 

20 ‘‘(b) LOCAL GOVERNMENT PROGRAM APPLICATION

21 REQUIREMENTS.—Subject to subsection (c), a local gov22 ernment program application shall include a plan that 

23 meets the requirements of section 1302 in the same man24 ner as such requirements apply to a State. 


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1 ‘‘(c) PROGRAM REQUIREMENTS.—The program re2 quirements specified in this title shall apply to a local gov3 ernment or consortium with a local government program 

4 application and plan approved under this section in the 

5 same manner as such requirements apply to a State except 

6 to the extent that a local government or consortium re7 quests, and the Secretary approves, a waiver or modifica8 tion of any such requirements. 

9 ‘‘(d) PAYMENTS.—The Secretary shall pay a local 

10 government or consortium with a local government pro11 gram application and plan approved under this section in 

12 the same manner as States are paid under section 1304. 

13 ‘‘SEC. 1309. GRANTS TO NONPROFIT ORGANIZATIONS. 

14 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

15 with the Secretary of Labor, shall award multi-year grants 

16 on a competitive basis to nonprofit organizations that sub17 mit applications to carry out employment services pro18 grams. 

19 ‘‘(b) SCOPE OF GRANTS.—Grants under this sub20 section may be regional programs or serve specific popu21 lations. 

22 ‘‘(c) APPLICATION PROCESS.—A nonprofit organiza23 tion seeking a grant under this subsection shall submit 

24 an application to the Secretary at such a time, in such 


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1 a manner, and containing such information as the Sec2 retary may reasonably require. 

3 ‘‘(d) SELECTION.—The Secretary shall select appli4 cants to receive a grant under this subsection based on— 

5 ‘‘(1) the applicant’s level of experience and 

6 commitment to providing subsidized jobs; 

7 ‘‘(2) the applicant’s demonstrated ability to re8 cruit individuals of the region or other specific popu9 lation served by the grant and provide work opportu10 nities for such individuals; and 

11 ‘‘(3) such other criteria as the Secretary deter12 mines appropriate. 

13 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to the Secretary to carry 

15 out this subsection for each of fiscal years 2020 through 

16 2025, such sums as are necessary.’’. 

17 (b) STUDY REGARDING INCENTIVES FOR PROGRAM

18 PERFORMANCE.— 

19 (1) IN GENERAL.—The Secretary of Health and 

20 Human Services shall enter into an agreement with 

21 the National Academy of Sciences to evaluate State 

22 programs carried out under part A of title XIII of 

23 the Social Security Act (as added by subsection (a)). 

24 The evaluation shall analyze the relationships be25 tween engagement, impacts, and outcome measures. 


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1 The evaluation shall also examine the issue of pro2 gram performance and include recommendations to 

3 Congress as to whether and how program perform4 ance could be tied to fiscal incentives. 

5 (2) REPORT.—Not later than 7 years after the 

6 date of enactment of this Act, the Secretary of 

7 Health and Human Services shall submit to Con8 gress a report containing the results of the evalua9 tion conducted under paragraph (1), together with 

10 recommendations for such legislation and adminis11 trative action as the Secretary determines appro12 priate. 

13 (c) PUBLIC INFORMATION ABOUT AVAILABILITY OF

14 EMPLOYMENT SERVICES.—Not later than January 1, 

15 2022, the Secretary of Health and Human Services shall 

16 make information publicly available to jobseekers (either 

17 on a website established for such purpose or on an existing 

18 Federal online resource that provides information to job19 seekers) about— 

20 (1) whether they are eligible for employment 

21 services under a State, local government, or tribal 

22 program under title XIII of the Social Security Act 

23 (as added by subsection (a)); and 


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1 (2) the appropriate State, local government, or 

2 tribal agency to contact for further information 

3 about such services and programs. 

4 SEC. 4. EMPLOYEE RETENTION WORK OPPORTUNITY CRED5 IT. 

6 (a) IN GENERAL.—Section 51 of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following new subsection: 

9 ‘‘(l) EMPLOYEE RETENTION CREDIT.— 

10 ‘‘(1) IN GENERAL.—The amount of the work 

11 opportunity credit determined under subsection (a) 

12 for the taxable year shall be increased by an amount 

13 equal to 40 percent of the qualified second-year 

14 wages for such year with respect to previously sub15 sidized employees. 

16 ‘‘(2) QUALIFIED SECOND-YEAR WAGES.— 

17 ‘‘(A) IN GENERAL.—For purposes of this 

18 subsection, the term ‘qualified second-year 

19 wages’ means qualified wages (determined as if 

20 previously subsidized employees were members 

21 of a targeted group)— 

22 ‘‘(i) which are paid to a previously 

23 subsidized employee, and 

24 ‘‘(ii) which are attributable to service 

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1 ning on the day after the last day of the 

2 1-year period with respect to such em3 ployee determined under subsection (b)(2). 

4 ‘‘(B) LIMITATION.—The amount of the 

5 qualified second-year wages which may be taken 

6 into account with respect to any individual shall 

7 not exceed $6,000 per year. 

8 ‘‘(3) PREVIOUSLY SUBSIDIZED EMPLOYEE.— 

9 For purposes of this subsection, the term ‘previously 

10 subsidized employee’ means an individual who is 

11 hired by an employer through the subsidized employ12 ment program under title XIII of the Social Security 

13 Act and who has been employed by the same em14 ployer for a consecutive 24 months as of the last day 

15 of the preceding taxable year.’’. 

16 (b) GAO STUDY.—The Comptroller General of the 

17 United States shall conduct a study on the employee re18 tention credit under section 51(l) of the Internal Revenue 

19 Code of 1986 and, not later than 6 months after the last 

20 day of the second taxable year beginning after the date 

21 of the enactment of this Act, shall report to the Committee 

22 on Finance of the Senate and the Committee on Ways and 

23 Means of the House of Representatives— 

24 (1) whether such retention credit had a mean25 ingful impact on retention as compared with other 


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1 currently existing and previous subsidized employ2 ment programs; and 

3 (2) whether such retention credit was easily un4 derstood by employers and had an impact on hiring 

5 decisions in addition to any subsidy received under 

6 title XIII of the Social Security Act. 

7 (c) EXTENSION OF WORK OPPORTUNITY CREDIT.— 

8 Paragraph (4) of section 51(c) of the Internal Revenue 

9 Code of 1986 is amended by striking ‘‘December 31, 

10 2020’’ and inserting ‘‘December 31, 2022’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 the date of the enactment of this Act. 

14 SEC. 5. CONFORMING AMENDMENTS. 

15 (a) TANF.— 

16 (1) STATE PLAN.—Section 402 (42 U.S.C. 602) 

17 is amended— 

18 (A) in subsection (a)(1)— 

19 (i) in subparagraph (A)(iii), by insert20 ing ‘‘or employment services, training and 

21 other services and activities, and sup22 portive services provided under the State 

23 program funded under title XIII’’ before 

24 the period; and 

25 (ii) in subparagraph (B)— 


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1 (I) in clause (iv), by inserting ‘‘, 

2 unless the parent or caretaker is par3 ticipating in the State program fund4 ed under title XIII’’ before the period; 

5 and 

6 (II) by adding at the end the fol7 lowing: 

8 ‘‘(VI) The document shall indi9 cate whether the State elects to carry 

10 out a State program to provide em11 ployment services, training and other 

12 services and activities, and supportive 

13 services under title XIII.’’; and 

14 (B) by adding at the end the following: 

15 ‘‘(d) STATE OPTION TO SUBMIT PLAN THAT ALIGNS

16 WITH THE STATE PLAN UNDER TITLE XIII.—A State 

17 may elect to submit the State plan required under this 

18 section at the same time and in the same manner, and 

19 to apply for the same period, as the State plan required 

20 under section 1302.’’. 

21 (2) PARTICIPATION IN THE STATE EMPLOY22 MENT, TRAINING, AND SUPPORTIVE SERVICES PRO23 GRAM UNDER TITLE XIII–A DEEMED TO BE MEETING

24 WORK PARTICIPATION REQUIREMENTS.—Section 


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1 407(c)(2) (42 U.S.C. 607(c)(2)) is amended by add2 ing at the end the following: 

3 ‘‘(E) PARTICIPATION IN THE STATE EM4 PLOYMENT, TRAINING, AND SUPPORTIVE SERV5 ICES PROGRAM UNDER TITLE XIII–A DEEMED

6 TO BE MEETING WORK PARTICIPATION RE7 QUIREMENTS.—For purposes of determining 

8 monthly participation rates under paragraphs 

9 (1)(B)(i) and (2)(B) of subsection (b), the fol10 lowing individuals are deemed to be engaged in 

11 work for a month: 

12 ‘‘(i) RECIPIENTS.—Any recipient who 

13 is participating in the State employment, 

14 training, and supportive services program 

15 under title XIII (for any number of hours 

16 per week during the month) and is receiv17 ing assistance under the State program 

18 funded under this part or under any State 

19 program funded with qualified State ex20 penditures (as defined in section 

21 409(a)(7)(B)(i)). 

22 ‘‘(ii) INDIVIDUALS WHO WOULD OTH23 ERWISE BE RECIPIENTS.—Any individual 

24 who is participating in the State employ25 ment, training, and supportive services 


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1 program under title XIII (for any number 

2 of hours per week during the month) and 

3 would be a recipient of assistance under 

4 the State program funded under this part 

5 or under any State program funded with 

6 qualified State expenditures (as defined in 

7 section 409(a)(7)(B)(i)) but for the indi8 vidual’s participation in the State employ9 ment, training and supportive services pro10 gram under title XIII.’’. 

11 (3) TRIBAL PROGRAMS.—Section 412(b) (42 

12 U.S.C. 612(b)) is amended by adding at the end the 

13 following: 

14 ‘‘(4) OPTION TO SUBMIT PLAN THAT ALIGNS

15 WITH THE STATE PLAN UNDER TITLE XIII–A.—Sub16 section (d) of section 402 shall apply to a tribal fam17 ily assistance plan in the same manner as that sec18 tion applies to a plan under that section.’’. 

19 (b) TITLE XI.—Section 1101(a)(1) of such Act (42 

20 U.S.C. 1301(a)(1)) is amended by striking ‘‘title XX’’ and 

21 inserting ‘‘titles XIII and XX’’. 

22 (c) INTERNAL REVENUE CODE.—Section 

23 51(c)(2)(B) of the Internal Revenue Code of 1986 is 

24 amended by striking ‘‘section 482(e)’’ and inserting ‘‘title 

25 XIII’’. 


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1 (d) TABLE OF CONTENTS FOR TITLE XIII.—Title 

2 XIII, as added by section 3(a), is amended by inserting 

3 the following before section 1301: 

‘‘TITLE XIII—REEMPLOYMENT AND OTHER JOB-RELATED 

ASSISTANCE AND BENEFITS 

‘‘Sec. 1301. Purpose; definitions; administration. 

‘‘Sec. 1302. State plan requirements. 

‘‘Sec. 1303. Use of funds. 

‘‘Sec. 1304. Payments to States. 

‘‘Sec. 1305. Other program requirements. 

‘‘Sec. 1306. Reports; technical assistance; research; audit requirement. 

‘‘Sec. 1307. Direct funding and administration for programs operated by Indian tribes. 

‘‘Sec. 1308. Direct funding and administration for programs operated by local 

governments. 

‘‘Sec. 1309. Grants to nonprofit organizations.’’. 

4 SEC. 6. EFFECTIVE DATE; REGULATIONS. 

5 (a) EFFECTIVE DATE.—Except as provided in sec6 tion 4(d), the amendments made by this Act shall take 

7 effect on January 1, 2022. 

8 (b) OPTION TO ACCELERATE FUNDING.— 

9 (1) IN GENERAL.—If the Secretary of Health 

10 and Human Services receives from a State, Indian 

11 tribe, or unit of local government, a written notice, 

12 in such form and manner and containing such infor13 mation as the Secretary shall require, that the State, 

14 Indian tribe, or unit of local government is oper15 ating, or wishes to operate, an employment assist16 ance program, then, during the period beginning on 

17 the first day of the first fiscal quarter that begins 

18 on or after the date that the Secretary receives such 

19 notice and ending on December 31, 2021, the SecVerDate Sep 11 2014 01:50 Jul 12, 2020 Jkt 099200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S4107.IS S4107

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1 retary shall make payments to the State, Indian 

2 tribe, or unit of local government under paragraph 

3 (3). 

4 (2) DEFINITIONS.—In this subsection: 

5 (A) EMPLOYMENT ASSISTANCE PRO6 GRAM.—The term ‘‘employment assistance pro7 gram’’ means a program operated by a State, 

8 Indian tribe, or local government that provides 

9 qualified program assistance, including a pro10 gram funded under part A of title IV of the So11 cial Security Act (42 U.S.C. 401 et seq.) or any 

12 other State, tribal, or local program financed 

13 with Federal funds. 

14 (B) QUALIFIED PROGRAM ASSISTANCE.— 

15 The term ‘‘qualified program assistance’’ means 

16 employment services, training and other serv17 ices and activities, or supportive services (as 

18 such terms are defined in section 1301(b) of 

19 the Social Security Act, as added by section 3), 

20 including any such services designed to reem21 ploy individuals who are unemployed or under22 employed for reasons related to COVID–19, but 

23 shall not include any employment services, 

24 training and other services and activities or 

25 supportive services that cannot be provided in a 


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1 manner that is safe for both program adminis2 trators and participants due to a COVID–19 

3 outbreak. 

4 (3) PAYMENTS.— 

5 (A) IN GENERAL.—Subject to subpara6 graph (B), the Secretary shall pay to any State, 

7 Indian tribe, or local government that has a no8 tice in effect under paragraph (1) for a fiscal 

9 quarter with respect to an employment assist10 ance program, an amount equal to the amount 

11 that such State, tribe, or local government 

12 would receive under title XIII of the Social Se13 curity Act (as added by section 3) if— 

14 (i) such title were in effect with re15 spect to such State, tribe, or local govern16 ment; 

17 (ii) the State, tribe, or local govern18 ment had a plan that met all requirements 

19 of such title and was approved under such 

20 title for such fiscal quarter, and the 

21 amounts expended by the State, tribe, or 

22 local government on qualified program as23 sistance under such program, were 

24 amounts expended by the State, tribe, or 


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1 local government to provide such assist2 ance under such plan; and 

3 (iii) the requirements of sections 

4 1303, 1304(c), 1305, and 1306 of such 

5 title did not apply. 

6 (B) LIMITATIONS.— 

7 (i) NO DUPLICATE FUNDING.—For 

8 purposes of subparagraph (A), in deter9 mining the amounts expended by a State, 

10 tribe, or local government under an em11 ployment assistance program to provide 

12 qualified program assistance, the total 

13 amount of State expenditures on such as14 sistance shall be reduced by the amount of 

15 Federal funds (other than funds paid 

16 under this subsection) that have been paid 

17 or that are expected to be paid to the 

18 State, tribe, or local government with re19 spect to such assistance. 

20 (ii) NO FUNDING FOR ADMINISTRA21 TIVE EXPENSES UNRELATED TO QUALI22 FIED PROGRAM ASSISTANCE.—No payment 

23 shall be made to a State, Indian tribe, or 

24 local government under this subsection for 

25 administrative expenses of an employment 


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1 assistance program that are not attrib2 utable to the administration of qualified 

3 program assistance. 

4 (c) REGULATIONS.—The Secretary of Health and 

5 Human Services, in consultation with the Secretary of 

6 Labor as appropriate, shall— 

7 (1) not later than 14 days after the date of en8 actment of this Act, issue guidance to States on how 

9 to seek accelerated funding under subsection (b); 

10 (2) not later than 6 months after the date of 

11 the enactment of this Act, issue proposed regulations 

12 for the purpose of implementing title XIII of the So13 cial Security Act (as added by section 2 of this Act), 

14 including regulations establishing uniform data col15 lection requirements; and 

16 (3) not later than 1 year after the date of en17 actment of this Act, publish final regulations for 

18 such purpose. 

Æ 


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