79–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–754 

JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES 

FOR SUCCESS ACT 

JUNE 13, 2018.—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 

DISSENTING VIEWS 

[To accompany H.R. 5861] 

[Including cost estimate of the Congressional Budget Office] 

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

bill (H.R. 5861) to amend part A of title IV of the Social Security 

Act, and for other purposes, 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 ............................................................... 14 

A. Purpose and Summary ..................................................................... 14 

B. Background and Need for Legislation ............................................. 14 

C. Legislative History ............................................................................ 17 

II. EXPLANATION OF THE BILL ................................................................... 19 

Sections 1, 2, and 3: Short Title, Table of Contents, and References. 19 

Section 4: Re-naming of program. ........................................................ 19 

Section 5: Helping more Americans enter and remain in the workforce. ................................................................................................. 20 

Section 6: Expecting universal engagement and case management. .. 23 

Section 7: Promoting accountability by measuring work outcomes. ... 26 

Section 8: Targeting funds to truly needy families. ............................. 37 

Section 9: Targeting funds to core purposes. ........................................ 40 

Section 10: Strenghtening program integrity by measuring improper 

payments. ......................................................................................... 42 

Section 11: Prohibition on State diversion of Federal funds to replace State spending. ...................................................................... 43 

Section 12: Inclusion of poverty reduction as a core purpose. ............ 43 

Section 13: Welfare for needs not weed. ................................................ 44 

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Section 14: Strengthening accountability through HHS approval 

of State plans. ................................................................................. 45 

Section 15: Aligning and improving data reporting. ........................... 48 

Section 16: Technical corrections to data exchange standards to 

improve program coordination. ..................................................... 50 

Section 17: Set-aside for economic downturns. .................................... 50 

Section 18: Definitions related to use of funds. .................................... 51 

Section 19: Elimination of obsolete provisions. .................................... 51 

Section 20: Effective date. ...................................................................... 52 

III. VOTES OF THE COMMITTEE .................................................................... 52 

IV. BUDGET EFFECTS OF THE BILL ............................................................ 56 

A. Committee Estimate of Budgetary Effects ....................................... 56 

B. Statement Regarding New Budget Authority and Tax Expenditures Budget Authority ................................................................... 57 

C. Cost Estimate Prepared by the Congressional Budget Office ......... 57 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

THE HOUSE .............................................................................................. 59 

A. Committee Oversight Findings and Recommendations .................. 59 

B. Statement of General Performance Goals and Objectives .............. 59 

C. Information Relating to Unfunded Mandates ................................. 60 

D. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 60 

E. Duplication of Federal Programs ..................................................... 60 

F. Disclosure of Directed Rule Makings ............................................... 60 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 60 

VII. DISSENTING VIEWS ................................................................................... 175 

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 ‘‘Jobs and Opportunity with Benefits and Services 

for Success Act’’. 

SEC. 2. TABLE OF CONTENTS. 

The table of contents of this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

Sec. 4. Re-naming of program. 

Sec. 5. Helping more Americans enter and remain in the workforce. 

Sec. 6. Expecting universal engagement and case management. 

Sec. 7. Promoting accountability by measuring work outcomes. 

Sec. 8. Targeting funds to truly needy families. 

Sec. 9. Targeting funds to core purposes. 

Sec. 10. Strengthening program integrity by measuring improper payments. 

Sec. 11. Prohibition on State diversion of Federal funds to replace State spending. 

Sec. 12. Inclusion of poverty reduction as a program purpose. 

Sec. 13. Welfare for needs not weed. 

Sec. 14. Strengthening accountability through HHS approval of State plans. 

Sec. 15. Aligning and improving data reporting. 

Sec. 16. Technical corrections to data exchange standards to improve program coordination. 

Sec. 17. Set-aside for economic downturns. 

Sec. 18. Definitions related to use of funds. 

Sec. 19. Elimination of obsolete provisions. 

Sec. 20. Effective date. 

SEC. 3. REFERENCES. 

Except as otherwise expressly provided, wherever in this Act an amendment or 

repeal is expressed in terms of an amendment to, or repeal of, a section or other 

provision, the reference shall be considered to be made to a section or other provision of the Social Security Act. 

SEC. 4. RE-NAMING OF PROGRAM. 

(a) IN GENERAL.—The heading for part A of title IV is amended to read as follows: 

‘‘PART A—JOBS AND OPPORTUNITY WITH BENEFITS 

AND SERVICES PROGRAM’’. 

(b) CONFORMING AMENDMENTS.— 

(1) The heading for section 403(a)(2)(B) (42 U.S.C. 603(a)(2)(B)) is amended 

by striking ‘‘TANF’’ and inserting ‘‘JOBS’’. 

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(2) The heading for section 413(a) (42 U.S.C. 613(a)) is amended by striking 

‘‘TANF’’ and inserting ‘‘JOBS’’. 

(3) The heading for section 471(e)(7)(B)(i) (42 U.S.C. 671(e)(7)(B)(i)), as in effect pursuant to the amendment made by section 50711(a)(2) of division E of 

the Bipartisan Budget Act of 2018 (Public Law 115–123), is amended by striking ‘‘TANF’’ and inserting ‘‘JOBS’’. 

SEC. 5. HELPING MORE AMERICANS ENTER AND REMAIN IN THE WORKFORCE. 

(a) FAMILY ASSISTANCE GRANTS.—Section 403(a)(1) (42 U.S.C. 603(a)(1)) is amended in each of subparagraphs (A) and (C) by striking ‘‘2017 and 2018’’ and inserting 

‘‘2019 through 2023’’. 

(b) HEALTHY MARRIAGE PROMOTION AND RESPONSIBLE FATHERHOOD GRANTS.— Section 403(a)(2)(D) (42 U.S.C. 603(a)(2)(D)) is amended— 

(1) by striking ‘‘2017 and 2018’’ and inserting ‘‘2019 through 2023’’; and 

(2) by striking ‘‘for fiscal year 2017 or 2018’’. 

(c) TRIBAL FAMILY ASSISTANCE GRANTS.—Section 412(a)(1)(A) (42 U.S.C. 

612(a)(1)(A)) is amended by striking ‘‘2017 and 2018’’ and inserting ‘‘2019 through 

2023’’. 

(d) IMPROVING ACCESS TO CHILD CARE TO SUPPORT WORK.—Section 418(a)(3) (42 

U.S.C. 618(a)(3)) is amended by striking ‘‘$2,917,000,000 for each of fiscal years 

2017 and 2018’’ and inserting ‘‘$3,525,000,000 for each of fiscal years 2019 through 

2023’’. 

(e) GRANTS TO THE TERRITORIES.—Section 1108(b)(2) (42 U.S.C. 1308(b)(2)) is 

amended by striking ‘‘2017 and 2018’’ and inserting ‘‘2019 through 2023’’. 

SEC. 6. EXPECTING UNIVERSAL ENGAGEMENT AND CASE MANAGEMENT. 

Section 408(b) (42 U.S.C. 608(b)) is amended to read as follows: 

‘‘(b) INDIVIDUAL OPPORTUNITY PLANS.— ‘‘(1) ASSESSMENT.—The State agency responsible for administering the State 

program funded under this part shall make an initial assessment of the following for each work-eligible individual (as defined in the regulations promulgated pursuant to section 407(i)(1)(A)(i)): 

‘‘(A) The education obtained, skills, prior work experience, work readiness, and barriers to work of the individual. 

‘‘(B) The well-being of the children in the family of the individual and, 

where appropriate, activities or services (such as services offered by a program funded under section 511) to improve the well-being of the children. 

‘‘(2) CONTENTS OF PLANS.—On the basis of the assessment required by paragraph (1) of this subsection, the State agency, in consultation with the individual, shall develop an individual opportunity plan that— 

‘‘(A) includes a personal responsibility agreement in which the individual 

acknowledges receipt of publicly-funded benefits and responsibility to comply with program requirements in order to receive the benefits; 

‘‘(B) sets forth the obligations of the individual to participate in work activities (as defined in section 407(d)), and the number of hours per month 

for which the individual will so participate pursuant to section 407; 

‘‘(C) sets forth an employment goal and planned short-, intermediate-, 

and long-term actions to achieve the goal, and, in the case of an individual 

who has not attained 24 years of age and is in secondary school or the 

equivalent, the intermediate action may be completion of secondary school 

or the equivalent; 

‘‘(D) describes the job counseling and other services the State will provide 

to the individual to enable the individual to obtain and keep employment 

in the private sector; 

‘‘(E) may include referral to appropriate substance abuse or mental 

health treatment; and 

‘‘(F) is signed by the individual. 

‘‘(3) TIMING.—The State agency shall comply with paragraph (1) and (2) with 

respect to a work-eligible individual— 

‘‘(A) within 180 days after the effective date of this subsection, in the case 

of an individual who, as of such effective date, is a recipient of assistance 

under the State program funded under this part (as in effect immediately 

before such effective date); or 

‘‘(B) within 60 days after the individual is determined to be eligible for 

the assistance, in the case of any other individual. 

‘‘(4) PENALTY FOR NONCOMPLIANCE BY INDIVIDUAL.—In addition to any other 

penalties required under the State program funded under this part, the State 

may reduce, by such amount as the State considers appropriate, the amount of 

assistance otherwise payable under the State program to a family that includes 

an individual who fails without good cause to comply with an individual opporVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6621 E:\HR\OC\HR754.XXX HR754
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tunity plan developed pursuant to this subsection, that is signed by the individual. 

‘‘(5) PERIODIC REVIEW.—The State shall meet with each work-eligible individual assessed by the State under paragraph (1), not less frequently than every 

90 days, to— 

‘‘(A) review the individual opportunity plan developed for the individual; 

‘‘(B) discuss with the individual the progress made by the individual in 

achieving the goals specified in the plan; and 

‘‘(C) update the plan, as necessary, to reflect any changes in the circumstances of the individual since the plan was last reviewed.’’. 

SEC. 7. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES. 

(a) IN GENERAL.—Section 407(a) (42 U.S.C. 607(a)) is amended to read as follows: 

‘‘(a) PERFORMANCE ACCOUNTABILITY AND WORK OUTCOMES.— 

‘‘(1) PURPOSE.—The purpose of this subsection is to provide for the establishment of performance accountability measures to assess the effectiveness of 

States in increasing employment, retention, and advancement among families 

receiving assistance under the State program funded under this part. 

‘‘(2) IN GENERAL.—A State to which a grant is made under section 403 for a 

fiscal year shall achieve the requisite level of performance on an indicator described in paragraph (3)(B) of this subsection for the fiscal year. 

‘‘(3) MEASURING STATE PERFORMANCE.— 

‘‘(A) IN GENERAL.—Each State, in consultation with the Secretary, shall 

collect and submit to the Secretary the information necessary to measure 

the level of performance of the State for each indicator described in subparagraph (B), for fiscal year 2020 and each fiscal year thereafter, and the 

Secretary shall use the information collected for fiscal year 2020 to establish the baseline level of performance for each State for each such indicator. 

‘‘(B) INDICATORS OF PERFORMANCE.—The indicators described in this subparagraph, for a fiscal year, are the following: 

‘‘(i) The percentage of individuals who were work-eligible individuals 

as of the time of exit from the program, who are in unsubsidized employment during the 2nd quarter after the exit. 

‘‘(ii) The percentage of individuals who were work-eligible individuals 

who were in unsubsidized employment in the 2nd quarter after the 

exit, who are also in unsubsidized employment during the 4th quarter 

after the exit. 

‘‘(iii) The median earnings of individuals who were work-eligible individuals as of the time of exit from the program, who are in unsubsidized employment during the 2nd quarter after the exit. 

‘‘(iv) The percentage of individuals who have not attained 24 years 

of age, are attending high school or enrolled in an equivalency program, 

and are work-eligible individuals or were work-eligible individuals as 

of the time of exit from the program, who obtain a high school degree 

or its recognized equivalent while receiving assistance under the State 

program funded under this part or within 1 year after the exit. 

‘‘(C) LEVELS OF PERFORMANCE.— 

‘‘(i) IN GENERAL.—For each State submitting a State plan pursuant 

to section 402(a), there shall be established, in accordance with this 

subparagraph, levels of performance for each of the indicators described 

in subparagraph (B). 

‘‘(ii) WEIGHT.—The weight assigned to such an indicator shall be the 

following: 

‘‘(I) 40 percent, in the case of the indicator described in subparagraph (B)(i). 

‘‘(II) 25 percent, in the case of the indicator described in subparagraph (B)(ii). 

‘‘(III) 25 percent, in the case of the indicator described in subparagraph (B)(iii). 

‘‘(IV) 10 percent, in the case of the indicator described in subparagraph (B)(iv). 

‘‘(iii) AGREEMENT ON REQUISITE PERFORMANCE LEVEL FOR EACH INDICATOR.— 

‘‘(I) IN GENERAL.—The Secretary and the State shall negotiate 

the requisite level of performance for the State with respect to each 

indicator described in clause (ii), for each of fiscal years 2020 

through 2023, and in the case of each of fiscal years 2021 through 

2023, shall do so before the beginning of the respective fiscal year. 

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‘‘(II) REQUIREMENTS IN ESTABLISHING PERFORMANCE LEVELS.—In 

establishing the requisite levels of performance, the State and the 

Secretary shall— 

‘‘(aa) take into account how the levels involved compare with 

the levels established for other States; 

‘‘(bb) ensure the levels involved are adjusted, using the objective statistical model referred to in clause (v), based on— 

‘‘(AA) the differences among States in economic conditions, including differences in unemployment rates or employment losses or gains in particular industries; and 

‘‘(BB) the characteristics of participants on entry into 

the program, including indicators of prior work history, 

lack of educational or occupational skills attainment, or 

other factors that may affect employment and earnings; 

and 

‘‘(CC) take into account the extent to which the levels involved promote continuous improvement in performance 

by each State. 

‘‘(iv) REVISIONS BASED ON ECONOMIC CONDITIONS AND INDIVIDUALS RE- CEIVING ASSISTANCE DURING THE FISCAL YEAR.—The Secretary shall, in 

accordance with the objective statistical model referred to in clause (v), 

revise the requisite levels of performance for a State and a fiscal year 

to reflect the economic conditions and characteristics of the relevant individuals in the State during the fiscal year. 

‘‘(v) STATISTICAL ADJUSTMENT MODEL.—The Secretary shall use an objective statistical model to make adjustments to the requisite levels of 

performance for the economic conditions and characteristics of the relevant individuals, and shall consult with the Secretary of Labor to develop a model that is the same as or similar to the model described in 

section 116(b)(3)(A)(viii) of the Workforce Innovation and Opportunity 

Act (29 U.S.C. 3141(b)(3)(A)(viii)). 

‘‘(vi) DEFINITION OF EXIT.—In this subsection, the term ‘exit’ means, 

with respect to a State program funded under this part, ceases to a receive a JOBS benefit under the program. 

‘‘(D) STATE OPTION TO ESTABLISH COMMON EXIT MEASURES.—Notwithstanding subparagraph (C)(vi) of this paragraph, a State that has not provided the notification under section 121(b)(1)(C)(ii) of the Workforce Innovation and Opportunity Act to exclude the State program funded under this 

part as a mandatory one-stop partner may adopt an alternative definition 

of ‘exit’ for the purpose of creating common exit measures to improve alignment with workforce programs operated under title I of such Act. 

‘‘(E) REGULATIONS.—In order to ensure nationwide comparability of data, 

the Secretary, after consultation the Secretary of Labor and with States, 

shall issue regulations governing the establishment of the performance accountability system under this subsection and a template for performance 

reports to be used by all States consistent with subsection (b).’’. 

(b) REPORTS ON STATE PERFORMANCE ON HHS ONLINE DASHBOARD.—Section 

407(b) (42 U.S.C. 607(b)) is amended to read as follows: 

‘‘(b) PUBLICATION OF STATE PERFORMANCE.—The Secretary shall, directly or 

through the use of grants or contracts, establish and operate an Internet website 

that is accessible to the public, with a dashboard that is regularly updated and provides easy-to-understand information on the performance of each State program 

funded under this part, including a profile for each such program, expressed by use 

of a template, which shall include— 

‘‘(1) information on the indicators and requisite performance levels established for the State under subsection (a), including, with respect to each such 

level, whether the State achieves, exceeds, or fails to achieve the level on an 

ongoing basis, including— 

‘‘(A) information on any adjustments made to the requisite levels using 

the statistical adjustment model described in subsection (a)(3)(D)(v); and 

‘‘(B) a grade based on the overall performance of the State, as determined 

by the Secretary and in consultation with the State, and the overall performance shall be graded based on the performance indicators and weights 

for each such indicator as described in subsection (a); 

‘‘(2) information reported under section 411 on the characteristics and demographics of individuals receiving assistance under the State program, including— 

‘‘(A) the number and percentage of child-only cases and reason why the 

cases are child-only; and 

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‘‘(B) the average weekly number of hours that each work-eligible individual in the State program participates in work activities, including a separate section showing the number and percentage of the work-eligible individuals with zero hours of the participation and the reason for non-participation; 

‘‘(3) information on the results of improper payments reviews; 

‘‘(4) a link to the State plan approved under section 402; and 

‘‘(5) information regarding any penalty imposed, or other corrective action 

taken, by the Secretary against a State for failing to achieve a requisite performance level or any other requirement imposed by or under this part.’’. 

(c) MODIFICATION OF RULES FOR DETERMINING WHETHER AN INDIVIDUAL IS ENGAGED IN WORK.—Section 407(c) (42 U.S.C. 607(c)) is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (A)— 

(i) by striking ‘‘For purposes of subsection (b)(1)(B)(i), a’’ and inserting ‘‘A’’; and 

(ii) by striking ‘‘, not fewer than’’ and all that follows through ‘‘this 

subsection’’; and 

(B) in subparagraph (B)— 

(i) in the matter preceding clause (i), by striking ‘‘For purposes of 

subsection (b)(2)(B), an’’ and inserting ‘‘An’’; 

(ii) in clause (i), by striking ‘‘, not fewer than’’ and all that follows 

through ‘‘this subsection’’; and 

(iii) in clause (ii), by striking ‘‘, not fewer than’’ and all that follows 

through ‘‘subsection (d)’’; and 

(2) in paragraph (2)— 

(A) by striking subparagraphs (A) and (D); 

(B) in each of subparagraphs (B) and (C), by striking ‘‘For purposes of determining monthly participation rates under subsection (b)(1)(B)(i), a’’ and 

inserting ‘‘A’’; and 

(C) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and 

(B), respectively. 

(d) MODIFICATIONS TO ALLOWABLE WORK ACTIVITIES.—Section 407(d) (42 U.S.C. 

607(d)) is amended— 

(1) in paragraph (5), by inserting ‘‘, including apprenticeship’’ before the semicolon; 

(2) in paragraph (8), by striking ‘‘(not to exceed 12 months with respect to any 

individual)’’ and inserting ‘‘, including career technical education’’; 

(3) in paragraph (11), by striking ‘‘and’’ at the end; 

(4) in paragraph (12), by striking the period and inserting ‘‘; and’’; and 

(5) by adding at the end the following: 

‘‘(13) any other activity that the State determines is necessary to improve the 

employment, earnings, or other outcomes of a recipient of assistance that are 

used in determining a level of performance by the State for purposes of subsection (a), as described in the State plan approved under section 402.’’. 

SEC. 8. TARGETING FUNDS TO TRULY NEEDY FAMILIES. 

(a) PROHIBITION ON USE OF FUNDS FOR FAMILIES WITH INCOME GREATER THAN

TWICE THE POVERTY LINE.—Section 404(k) (42 U.S.C. 604(k)) is amended to read as 

follows: 

‘‘(k) PROHIBITIONS.— 

‘‘(1) USE OF FUNDS FOR PERSONS WITH INCOME GREATER THAN TWICE THE POVERTY LINE.—A State to which a grant is made under this part shall not use the 

grant to provide any assistance or services to a family whose monthly income 

exceeds twice 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))).’’. 

(b) ELIMINATION OF LIMITATION ON USE OF FUNDS FOR CASE MANAGEMENT ACTIVITIES.—Section 404(b)(2) (42 U.S.C. 604(b)(2)) is amended to read as follows: 

‘‘(2) EXCEPTIONS.—Paragraph (1) of this subsection shall not apply to the use 

of a grant for— 

‘‘(A) information technology and computerization needed for tracking, 

monitoring, or data collection required by or under this part; or 

‘‘(B) case management activities to carry out section 408(b).’’. 

(c) PROHIBITION ON USE OF FUNDS FOR DIRECT SPENDING ON CHILD CARE OR

CHILD WELFARE SERVICES OR ACTIVITIES.—Section 404(k) (42 U.S.C. 604(k)), as 

amended by subsection (a) of this section, is amended by adding at the end the following: 

7 

‘‘(2) DIRECT SPENDING ON CHILD CARE SERVICES OR ACTIVITIES OR CHILD WELFARE SERVICES OR ACTIVITIES.—A State to which a grant is made under this 

part shall not use the grant for direct spending on child care services or activities or direct spending on child welfare services or activities.’’. 

(d) EXPANSION OF AUTHORITY TO TRANSFER FUNDS TO OTHER PROGRAMS.—Section 

404(d) (42 U.S.C. 604(d)) is amended by striking paragraphs (1) through (3) and inserting the following: 

‘‘(1) IN GENERAL.—A State may use not more than 50 percent of the grant 

made to the State under section 403(a)(1) to carry out a State program pursuant to any or all of the following provisions of law: 

‘‘(A) The Child Care and Development Block Grant Act of 1990. 

‘‘(B) Title I of the Workforce Innovation and Opportunity Act. 

‘‘(C) Subpart 1 of part B of this title. 

‘‘(2) LIMITATION ON AMOUNT TRANSFERRABLE TO SUBPART 1 OF PART B OF THIS

TITLE.— 

‘‘(A) In general.—A State may use not more than the applicable percentage of the amount of a grant made to the State under section 403(a)(1) to 

carry out State programs pursuant to subpart 1 of part B. 

‘‘(B) APPLICABLE PERCENTAGE.—For purposes of subparagraph (A), the applicable percentage is 10 percent. 

‘‘(3) APPLICABLE RULES.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph (B) of this paragraph, any amount paid to a State under this part that is used to carry 

out a State program pursuant to a provision of law specified in paragraph 

(1) shall not be subject to the requirements of this part, but shall be subject 

to the requirements that apply to Federal funds provided directly under the 

provision of law to carry out the program, and the expenditure of any 

amount so used shall not be considered to be an expenditure under this 

part. 

‘‘(B) FUNDS TRANSFERRED TO THE WIOA.—In the case of funds transferred 

under paragraph (1)(B) of this subsection— 

‘‘(i) all of the funds will be used to support families eligible for assistance under the State program funded under this part; and 

‘‘(ii) not more than 15 percent of the funds will be reserved for statewide workforce investment activities referred to in section 128(a)(1) of 

the Workforce Innovation and Opportunity Act. 

‘‘(4) EXCLUSION OF STATES EXCLUDING THE STATE JOBS PROGRAM AS A MANDATORY ONE-STOP PARTNER UNDER THE WIOA.—The authority provided by this subsection may not be exercised by a State that has provided the notification referred to in section 407(a)(3)(D).’’. 

SEC. 9. TARGETING FUNDS TO CORE PURPOSES. 

(a) REQUIREMENT THAT STATES RESERVE 25 PERCENT OF JOBS GRANT FOR SPENDING ON CORE ACTIVITIES.—Section 408(a) (42 U.S.C. 608(a)) is amended by adding 

at the end the following: 

‘‘(13) REQUIREMENT THAT STATES RESERVE 25 PERCENT OF JOBS GRANT FOR

SPENDING ON CORE ACTIVITIES.—A State to which a grant is made under section 

403(a)(1) for a fiscal year shall expend not less than 25 percent of the grant on 

assistance, case management, work supports and supportive services, work, 

wage subsidies, work activities (as defined in section 407(d)), and non-recurring 

short-term benefits.’’. 

(b) REQUIREMENT THAT AT LEAST 25 PERCENT OF QUALIFIED STATE EXPENDITURES

BE FOR CORE ACTIVITIES.—Section 408(a) (42 U.S.C. 608(a)), as amended by subsection (a) of this section, is amended by adding at the end the following: 

‘‘(14) REQUIREMENT THAT AT LEAST 25 PERCENT OF QUALIFIED STATE EXPENDITURES BE FOR CORE ACTIVITIES.—Not less than 25 percent of the qualified State 

expenditures (as defined in section 409(a)(7)(B)(i)) of a State during the fiscal 

year shall be for assistance, case management, work supports and supportive 

services, work, wage subsidies, work activities (as defined in section 407(d)), 

and non-recurring short-term benefits.’’. 

(c) PHASE-OUT OF COUNTING OF THIRD-PARTY CONTRIBUTIONS AS QUALIFIED STATE

EXPENDITURES.—Section 408(a) (42 U.S.C. 608(a)), as amended by subsections (a) 

and (b) of this section, is amended by adding at the end the following: 

‘‘(15) PHASE-OUT OF COUNTING OF THIRD-PARTY CONTRIBUTIONS AS QUALIFIED

STATE EXPENDITURES.— 

‘‘(A) IN GENERAL.—The qualified State expenditures (as defined in section 

409(a)(7)(B)(i)) of a State for a fiscal year that are attributable to the value 

of goods and services provided by a source other than a State or local govVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6621 E:\HR\OC\HR754.XXX HR754
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ernment shall not exceed the applicable percentage of the expenditures for 

the fiscal year. 

‘‘(B) APPLICABLE PERCENTAGE.—In subparagraph (A), the term ‘applicable 

percentage’ means, with respect to a fiscal year— 

‘‘(i) 75 percent, in the case of fiscal year 2020; 

‘‘(ii) 50 percent, in the case of fiscal year 2021; 

‘‘(iii) 25 percent, in the case of fiscal year 2022; and 

‘‘(iv) 0 percent, in the case of fiscal year 2023 or any succeeding fiscal 

year.’’. 

SEC. 10. STRENGTHENING PROGRAM INTEGRITY BY MEASURING IMPROPER PAYMENTS. 

Section 404 (42 U.S.C. 604) is amended by adding at the end the following: 

‘‘(l) APPLICABILITY OF IMPROPER PAYMENTS LAWS.— 

‘‘(1) IN GENERAL.—The Improper Payments Information Act of 2002 and the 

Improper Payments Elimination and Recovery Act of 2010 shall apply to a State 

in respect of the State program funded under this part in the same manner in 

which such Acts apply to a Federal agency. 

‘‘(2) REGULATIONS.—Within 2 years after the date of the enactment of this 

subsection, the Secretary shall prescribe regulations governing how a State reviews and reports improper payments under the State program funded under 

this part.’’. 

SEC. 11. PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS TO REPLACE STATE SPENDING. 

Section 408(a) (42 U.S.C. 608(a)), as amended by section 9 of this Act, is amended 

by adding at the end the following: 

‘‘(16) NON-SUPPLANTATION REQUIREMENT.—Funds made available to a State 

under this part shall be used to supplement, not supplant, State general revenue spending on activities described in section 404.’’. 

SEC. 12. INCLUSION OF POVERTY REDUCTION AS A PROGRAM PURPOSE. 

Section 401(a) (42 U.S.C. 601(a)) is amended— 

(1) by striking ‘‘and’’ at the end of paragraph (3); 

(2) by striking the period at the end of paragraph (4) and inserting ‘‘; and’’; 

and 

(3) by adding at the end the following: 

‘‘(5) reduce child poverty by increasing employment entry, retention, and advancement of needy parents.’’. 

SEC. 13. WELFARE FOR NEEDS NOT WEED. 

(a) PROHIBITION.—Section 408(a)(12)(A) (42 U.S.C. 608(a)(12)(A)) is amended— 

(1) by striking ‘‘or’’ at the end of clause (ii); 

(2) by striking the period at the end of clause (iii) and inserting ‘‘; or’’; and 

(3) by adding at the end the following: 

‘‘(iv) any establishment that offers marihuana (as defined in section 

102(16) of the Controlled Substances Act) for sale.’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection (a) shall take effect 

on the date that is 2 years after the date of the enactment of this Act. 

SEC. 14. STRENGTHENING ACCOUNTABILITY THROUGH HHS APPROVAL OF STATE PLANS. 

(a) IN GENERAL.—Section 402 (42 U.S.C. 602) is amended— 

(1) in subsection (a)— 

(A) in the matter preceding paragraph (1), by striking ‘‘found’’ and inserting ‘‘approved that’’; and 

(B) in paragraph (1)— 

(i) in subparagraph (A)— 

(I) by striking clauses (ii) and (iii) and inserting the following: 

‘‘(ii) Require work-eligible individuals (as defined in the regulations 

promulgated pursuant to section 407(i)(1)(A)(i)) to engage in work activities consistent with section 407(c). The document shall describe any 

other activity that the State will consider a work activity under section 

407(c)(13).’’; 

(II) by redesignating clauses (iv) through (viii) as clauses (iii) 

through (vii), respectively; and 

(III) by adding at the end the following: 

‘‘(viii) Describe the case management practices of the State with respect to the requirements of section 408(b), provide a copy of the form 

or forms that will be used to assess a work-eligible individual (as so 

defined) and prepare an individual opportunity plan for the individual, 

describe how the State will ensure that such a plan is reviewed in acVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6621 E:\HR\OC\HR754.XXX HR754
9 

cordance with section 408(b)(5), and describe how the State will measure progress under the plan. 

‘‘(ix) Propose the requisite levels of performance for the State for purposes of section 407(a)(3)(D) for each year in the 2-year period referred 

to in subsection (d) of this section, and provide an explanation with 

supporting data of why each such level is appropriate. 

‘‘(x) Describe how the State will engage low-income noncustodial parents paying child support and how such a parent will be provided with 

access to work support and other services under the program to which 

the parent is referred to support their employment and advancement. 

‘‘(xi) Describe how the State will comply with improper payments 

provisions in section 404(l). 

‘‘(xii) Describe coordination with other programs, including whether 

the State intends to exercise authority provided by section 404(d) of 

this Act to transfer any funds paid to the State under this part, provide 

assurance that, in the case of a transfer to carry out a program under 

title I of the Workforce Innovation and Opportunity Act, the State will 

comply with section 404(d)(3)(B) of this Act and coordinate with the 

one-stop delivery system under the Workforce Innovation and Opportunity Act, and describe how the State will coordinate with the programs involved to provide services to families receiving assistance 

under the program referred to in paragraph (1) of this subsection. 

‘‘(xiii) Describe how the State will promote marriage, such as through 

temporary disregard of the income of a new spouse when an individual 

receiving assistance under the State program marries so that the couple doesn’t automatically lose benefits due to marriage. 

‘‘(xiv) Describe how the State will allow for a transitional period of 

benefits, such as through temporary earned income disregards or a 

gradual reduction in the monthly benefit amount, for an individual receiving assistance who obtains employment and becomes ineligible due 

to an increase in income obtained through employment or through an 

increase in wages.’’; and 

(ii) in subparagraph (B), by striking clauses (iv) and (v); 

(2) by striking subsection (c) and inserting the following: 

‘‘(c) PUBLIC AVAILABILITY OF STATE PLANS.—The Secretary shall make available 

to the public a link to any plan or plan amendment submitted by a State under this 

subsection.’’; and 

(3) by adding at the end the following: 

‘‘(d) 2-YEAR PLAN.—A plan submitted pursuant to this section shall be designed 

to be implemented during a 2-year period. 

‘‘(e) COMBINED PLAN ALLOWED.—A State may submit to the Secretary and the 

Secretary of Labor a combined State plan that meets the requirements of subsections (a) and (d) and that is for programs and activities under the Workforce Innovation and Opportunity Act. 

‘‘(f) APPROVAL OF PLANS.—The Secretary shall approve any plan submitted pursuant to this section that meets the requirements of subsections (a) through (d).’’. 

(b) DUTIES OF THE SECRETARY.— 

(1) COORDINATION OF ACTIVITIES; DISSEMINATION OF INFORMATION.—Section 

416 (42 U.S.C. 616) is amended— 

(A) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The programs’’; and 

(B) by adding at the end the following: 

‘‘(b) COORDINATION OF ACTIVITIES.—The Secretary shall coordinate all activities of 

the Department of Health and Human Services relating to work activities (as defined in section 407(d)) and requirements and measurement of employment outcomes, and, to the maximum extent practicable, coordinate the activities of the Department in this regard with similar activities of other Federal entities. 

‘‘(c) DISSEMINATION OF INFORMATION.—The Secretary shall disseminate, for voluntary informational purposes, information on practices that scientifically valid research indicates are most successful in improving the quality of State and tribal programs funded under this part.’’. 

(c) TECHNICAL ASSISTANCE.— 

(1) IN GENERAL.—Section 406 (42 U.S.C. 606) is amended to read as follows: 

‘‘SEC. 406. TECHNICAL ASSISTANCE. 

‘‘(a) IN GENERAL.—The Secretary shall provide technical assistance to States and 

Indian tribes (which may include providing technical assistance on a reimbursable 

basis), which shall be provided by qualified experts on practices grounded in scientifically valid research, where appropriate, to support activities related publicaVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00009 Fmt 6659 Sfmt 6621 E:\HR\OC\HR754.XXX HR754
10 

tion of State performance under section 407(b) and to carry out State and tribal programs funded under this part. 

‘‘(b) RESERVATION OF FUNDS.—The Secretary shall reserve not more than 0.25 percent of the amount appropriated by section 403(a)(1)(C) for a fiscal year to carry out 

subsection (a) of this section.’’. 

(2) CONFORMING AMENDMENT.—Section 403(a)(1)(B) (42 U.S.C. 603(a)(1)(B)) is 

amended by striking ‘‘percentage specified in section 413(h)(1)’’ and inserting 

‘‘the sum of the percentages specified in sections 406(b) and 413(h)’’. 

SEC. 15. ALIGNING AND IMPROVING DATA REPORTING. 

(a) REQUIREMENT THAT STATES REPORT FULL-POPULATION DATA.—Section 

411(a)(1) (42 U.S.C. 611(a)(1)) is amended— 

(1) by striking subparagraph (B); 

(2) by striking ‘‘(1) GENERAL REPORTING REQUIREMENT.—’’; and 

(3) by— 

(A) redesignating— 

(i) subparagraph (A) as paragraph (1); 

(ii) clauses (i) through (xvii) of subparagraph (A) as subparagraphs 

(A) through (Q), respectively; 

(iii) subclauses (I) through (V) of clause (ii) as clauses (i) through (v), 

respectively; 

(iv) subclauses (I) through (VII) of clause (xi) as clauses (i) through 

(vii), respectively; and 

(v) subclauses (I) through (V) of clause (xvi) as clauses (i) through (v), 

respectively; and 

(B) moving each such redesignated provision 2 ems to the left. 

(b) REPORT ON PARTICIPATION IN WORK ACTIVITIES.—Section 411(a)(1) (42 U.S.C. 

611(a)(1)), as amended by subsection (a)(3) of this section, is amended by striking 

subparagraphs (K) and (L) and inserting the following: 

‘‘(K) The work eligibility status of each individual in the family, and— 

‘‘(i) in the case of each work-eligible individual (as defined in the regulations promulgated pursuant to section 407(i)(1)(A)(i)) in the family— 

‘‘(I) the number of hours (including zero hours) per month of participation in— 

‘‘(aa) work activities (as defined in section 407(d)); and 

‘‘(bb) any other activity required by the State to remove a 

barrier to employment; and 

‘‘(ii) in the case of each individual in the family who is not a workeligible individual (as so defined), the reason for that status. 

‘‘(L) For each work-eligible individual (as so defined) and each adult in 

the family who did not participate in work activities (as so defined) during 

a month, the reason for the lack of participation.’’. 

(c) REPORTING OF INFORMATION ON EMPLOYMENT AND EARNINGS OUTCOMES.—Section 411(c) (42 U.S.C. 611(c)) is amended to read as follows: 

‘‘(c) REPORTING OF INFORMATION ON EMPLOYMENT AND EARNINGS OUTCOMES.— 

The Secretary, in consultation with the Secretary of Labor, shall determine the information that is necessary to compute the employment and earnings outcomes and 

the statistical adjustment model for the employment and earnings outcomes required under section 407, and each eligible State shall collect and report that information to the Secretary.’’. 

SEC. 16. TECHNICAL CORRECTIONS TO DATA EXCHANGE STANDARDS TO IMPROVE PROGRAM 

COORDINATION. 

(a) IN GENERAL.—Section 411(d) (42 U.S.C. 611(d)) is amended to read as follows: 

‘‘(d) DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.— 

‘‘(1) DESIGNATION.—The Secretary shall, in consultation with an interagency 

work group established by the Office of Management and Budget and considering State government perspectives, by rule, designate data exchange standards to govern, under this part— 

‘‘(A) necessary categories of information that State agencies operating 

programs under State plans approved under this part are required under 

applicable Federal law to electronically exchange with another State agency; and 

‘‘(B) Federal reporting and data exchange required under applicable Federal law. 

‘‘(2) REQUIREMENTS.—The data exchange standards required by paragraph (1) 

shall, to the extent practicable— 

‘‘(A) incorporate a widely accepted, non-proprietary, searchable, computerreadable format, such as the eXtensible Markup Language; 

11 

‘‘(B) contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange 

Model; 

‘‘(C) incorporate interoperable standards developed and maintained by 

Federal entities with authority over contracting and financial assistance; 

‘‘(D) be consistent with and implement applicable accounting principles; 

‘‘(E) be implemented in a manner that is cost-effective and improves program efficiency and effectiveness; and 

‘‘(F) be capable of being continually upgraded as necessary. 

‘‘(3) RULE OF CONSTRUCTION.—Nothing in this subsection shall be construed 

to require a change to existing data exchange standards found to be effective 

and efficient.’’. 

(b) EFFECTIVE DATE.—Not later than the date that is 24 months after the date 

of the enactment of this section, the Secretary of Health and Human Services shall 

issue a proposed rule that— 

(1) identifies federally required data exchanges, include specification and timing of exchanges to be standardized, and address the factors used in determining whether and when to standardize data exchanges; and 

(2) specifies State implementation options and describes future milestones. 

SEC. 17. SET-ASIDE FOR ECONOMIC DOWNTURNS. 

Section 404(e) (42 U.S.C. 604(e)) is amended to read as follows: 

‘‘(e) DEADLINES FOR OBLIGATION AND EXPENDITURES OF FUNDS BY STATES.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), a State to which 

funds are paid under section 403(a)(1) shall obligate the funds within 2 years 

after the date the funds are so paid, and shall expend the funds within 3 years 

after such date. 

‘‘(2) EXCEPTION FOR LIMITED AMOUNT OF FUNDS SET ASIDE FOR FUTURE USE.— 

A State to which funds are paid under section 403(a)(1) may reserve not more 

than 15 percent of the funds for future use in the State program funded under 

this part.’’. 

SEC. 18. DEFINITIONS RELATED TO USE OF FUNDS. 

Section 419 (42 U.S.C. 619) is amended by adding at the end the following: 

‘‘(6) ASSISTANCE.—The term ‘assistance’ means cash, payments, vouchers, and 

other forms of benefits designed to meet a family’s ongoing basic needs (such 

as for food, clothing, shelter, utilities, household goods, personal care items, and 

general incidental expenses). 

‘‘(7) WORK SUPPORTS.—The term ‘work supports’ means assistance and nonassistance transportation benefits (such as the value of allowances, bus tokens, 

car payments, auto repair, auto insurance reimbursement, and van services provided in order to help families obtain, retain, or advance in employment, participate in work activities (as defined in section 407(d)), or as a non-recurrent, 

short-term benefit, including goods provided to individuals in order to help them 

obtain or maintain employment (such as tools, uniforms, fees to obtain special 

licenses, bonuses, incentives, and work support allowances and expenditures for 

job access). 

‘‘(8) SUPPORTIVE SERVICES.—The term ‘supportive services’ means services 

such as domestic violence services, and mental health, substance abuse and disability services, housing counseling services, and other family supports, except 

to the extent that the provision of the service would violate section 408(a)(6). 

‘‘(9) JOBS BENEFIT.—The term ‘JOBS benefit’ means— 

‘‘(A) assistance; or 

‘‘(B) wage subsidies that are paid, with funds provided under section 

403(a) or with qualified State expenditures, with respect to a person who— 

‘‘(i) was a work-eligible individual (as defined in the regulations promulgated pursuant to section 407(i)(1)(A)(i)) at the time of entry into 

subsidized employment, such as on-the-job training or apprenticeship; 

and 

‘‘(ii) is not receiving assistance.’’. 

SEC. 19. ELIMINATION OF OBSOLETE PROVISIONS. 

(a) ELIMINATION OF SUPPLEMENTAL GRANTS TO STATES.—Section 403(a) (42 U.S.C. 

603(a)) is amended by striking paragraph (3). 

(b) ELIMINATION OF BONUS TO REWARD HIGH PERFORMANCE STATES.— 

(1) IN GENERAL.—Section 403(a) (42 U.S.C. 603(a)) is amended by striking 

paragraph (4). 

(2) CONFORMING AMENDMENT.—Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is 

amended by striking ‘‘403(a)(4),’’. 

(c) ELIMINATION OF WELFARE-TO-WORK GRANTS.— 

12 

(1) IN GENERAL.—Section 403(a) (42 U.S.C. 603(a)) is amended by striking 

paragraph (5). 

(2) CONFORMING AMENDMENTS.— 

(A) ELIMINATION OF EXCLUSION FROM TIME LIMIT.—Section 408(a)(7) (42 

U.S.C. 608(a)(7)) is amended by striking subparagraph (G). 

(B) ELIMINATION OF PENALTY FOR MISUSE OF COMPETITIVE WELFARE-TOWORK FUNDS.—Section 409(a)(1) (42 U.S.C. 609(a)(1)) is amended by striking subparagraph (C). 

(C) ELIMINATION OF EXCLUSION FROM QUALIFIED STATE EXPENDITURES OF

STATE FUNDS USED TO MATCH WELFARE-TO-WORK GRANT FUNDS.—Section 

409(a)(7)(B)(iv) (42 U.S.C. 609(a)(7)(B)(iv)) is amended in the 1st sentence— 

(i) by adding ‘‘or’’ at the end of subclause (II); and 

(ii) by striking subclause (III) and redesignating subclause (IV) as 

subclause (III). 

(D) ELIMINATION OF PENALTY FOR FAILURE OF STATE TO MAINTAIN HISTORIC EFFORT DURING YEAR IN WHICH WELFARE-TO-WORK GRANT IS RECEIVED.—Section 409(a) (42 U.S.C. 609(a)) is amended by striking paragraph (13). 

(E) ELIMINATION OF REQUIREMENTS RELATING TO WELFARE-TO-WORK

GRANTS IN QUARTERLY STATE REPORTS.—Section 411(a) (42 U.S.C. 611(a)), 

as amended by section 15(a) of this Act, is amended— 

(i) in paragraph (1), by striking ‘‘(except for information relating to 

activities carried out under section 403(a)(5))’’; and 

(ii) in each of paragraphs (2) through (4), by striking the comma and 

all that follows and inserting a period. 

(F) INDIAN TRIBAL PROGRAMS.—Section 412(a) (42 U.S.C. 612(a)) is 

amended by striking paragraph (3). 

(G) ELIMINATION OF REQUIREMENT TO DISCLOSE CERTAIN INFORMATION TO

PRIVATE INDUSTRY COUNCIL RECEIVING WELFARE-TO-WORK FUNDS.—Section 

454A(f) (42 U.S.C. 654a(f)) is amended by striking paragraph (5). 

(H) GRANTS TO TERRITORIES.—Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is 

amended by striking ‘‘403(a)(5),’’. 

(d) ELIMINATION OF CONTINGENCY FUND.— 

(1) IN GENERAL.—Section 403 (42 U.S.C. 603) is amended by striking all of 

subsection (b) except paragraph (5). 

(2) CONFORMING AMENDMENTS.— 

(A) TRANSFER OF NEEDY STATE DEFINITION.— 

(i) IN GENERAL.—Paragraph (5) of section 403(b) (42 U.S.C. 603(b)(5)) 

is— 

(I) amended— 

(aa) in the matter preceding subparagraph (A), by striking 

‘‘paragraph (4)’’ and inserting ‘‘subparagraph (C)’’; 

(bb) in each of subparagraphs (A) and (B), by redesignating 

clauses (i) and (ii) as subclauses (I) and (II), respectively; 

(cc) by redesignating subparagraphs (A) and (B) as clauses 

(i) and (ii), respectively; 

(dd) by redesignating such paragraph as subparagraph (D); 

and 

(ee) by moving each provision 2 ems to the right; and 

(II) as so amended, hereby transferred into section 409(a)(3) (42 

U.S.C. 609(a)(3)) and added to the end of such section. 

(ii) CONFORMING AMENDMENT.—Section 409(a)(3)(C) (42 U.S.C. 

609(a)(3)(C)) is amended by striking ‘‘(as defined in section 403(b)(5))’’. 

(B) ELIMINATION OF PENALTY FOR FAILURE OF STATE RECEIVING AMOUNTS

FROM CONTINGENCY FUND TO MAINTAIN 100 PERCENT OF HISTORIC EFFORT.— 

Section 409(a) (42 U.S.C. 609(a)) is amended by striking paragraph (10). 

(e) CONFORMING AMENDMENTS RELATED TO ELIMINATION OF FEDERAL LOANS FOR

STATE WELFARE PROGRAMS.— 

(1) ELIMINATION OF ASSOCIATED PENALTY PROVISION.— 

(A) IN GENERAL.—Section 409(a) (42 U.S.C. 609(a)) is amended by striking paragraph (6). 

(B) CONFORMING AMENDMENTS.—Section 412(g)(1) (42 U.S.C. 612(g)(1)) is 

amended by striking ‘‘(a)(6),’’. 

(2) ELIMINATION OF PROVISION PROVIDING FOR TRIBAL ELIGIBILITY.—Section 

412 (42 U.S.C. 612) is amended by striking subsection (f). 

(3) ELIMINATION OF DISREGARD OF LOAN IN APPLYING LIMIT ON PAYMENTS TO

THE TERRITORIES.—Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 

striking ‘‘406,’’. 

13 

(f) ELIMINATION OF LIMITATIONS ON OTHER STATE PROGRAMS FUNDED WITH

QUALIFIED STATE EXPENDITURES.— 

(1) The following provisions are each amended by striking ‘‘or any other State 

program funded with qualified State expenditures (as defined in section 

409(a)(7)(B)(i))’’: 

(A) Paragraphs (1) and (2) of section 407(e) (42 U.S.C. 607(e)(1) and (2)). 

(B) Section 411(a)(1) (42 U.S.C. 611(a)(1)), as amended by section 

15(a)(3)(A)(i) of this Act. 

(C) Subsections (d) and (e)(1) of section 413 (42 U.S.C. 613(d) and (e)(1)). 

(2) Section 413(a) (42 U.S.C. 613(a)) is amended by striking ‘‘and any other 

State program funded with qualified State expenditures (as defined in section 

409(a)(7)(B)(i))’’. 

(g) CONFORMING AMENDMENTS RELATED TO ELIMINATION OF REPORT.— 

(1) IN GENERAL.—Section 409(a)(2) (42 U.S.C. 609(a)(2)) is amended— 

(A) in the paragraph heading, by inserting ‘‘QUARTERLY’’ before ‘‘REPORT’’; 

(B) in subparagraph (A)(ii), by striking ‘‘clause (i)’’ and inserting ‘‘subparagraph (A)’’; 

(C) by striking ‘‘(A) QUARTERLY REPORTS.—’’; 

(D) by striking subparagraph (B); and 

(E) by redesignating clauses (i) and (ii) of subparagraph (A) as subparagraphs (A) and (B), respectively (and adjusting the margins accordingly). 

(2) CONFORMING AMENDMENTS.— 

(A) Section 409(b)(2) (42 U.S.C. 609(b)(2)) is amended by striking ‘‘and,’’ 

and all that follows and inserting a period. 

(B) Section 409(c)(4) (42 U.S.C. 609(c)(4)) is amended by striking ‘‘(2)(B),’’. 

(h) ANNUAL REPORTS TO CONGRESS.—Section 411(b)(1)(A) (42 U.S.C. 611(b)(1)(A)) 

is amended by striking ‘‘participation rates’’ and inserting ‘‘outcome measures’’. 

(i) REDUCTION IN FORCE PROVISIONS.—Section 416(a) (42 U.S.C. 616(a)), as so designated by section 14(b)(1)(A) of this Act, is amended by striking ‘‘, and the Secretary’’ and all that follows and inserting a period. 

(j) CONFORMING CROSS-REFERENCES.— 

(1) Section 409 (42 U.S.C. 609) is amended— 

(A) in subsection (a)(7)(B)(i)(III), by striking ‘‘(12)’’ and inserting ‘‘(10)’’; 

(B) in subsection (a) (as amended by subsections (c)(2)(D), (d)(2)(B), and 

(e)(1)(A) of this section), by redesignating paragraphs (7), (8), (9), (11), (12), 

(14), (15), and (16) as paragraphs (6) through (13), respectively; 

(C) in subsection (b)(2), by striking ‘‘(8), (10), (12), or (13)’’ and inserting 

‘‘or (10)’’; and 

(D) in subsection (c)(4), by striking ‘‘(8), (10), (12), (13), or (16)’’ and inserting ‘‘(10), or (13)’’. 

(2) Section 452 (42 U.S.C. 652) is amended in each of subsections (d)(3)(A)(i) 

and (g)(1) by striking ‘‘409(a)(8)’’ and inserting ‘‘409(a)(7)’’. 

(k) MODIFICATIONS TO MAINTENANCE-OF-EFFORT REQUIREMENT.—Section 

409(a)(6)(B)(i) (42 U.S.C. 609(a)(6)(B)(i)), as redesignated by subsection (j)(1)(B) of 

this section, is amended— 

(1) in subclause (I)— 

(A) in the matter preceding item (aa), by striking ‘‘all State programs’’ 

and inserting ‘‘the State program funded under this part’’; 

(B) by redesignating items (dd) and (ee) as items (ee) and (ff), respectively, and inserting after item (cc) the following: 

‘‘(dd) Expenditures for a purpose described in paragraph (3) 

or (4) of section 401(a).’’; and 

(C) in item (ee) (as so redesignated), by striking ‘‘and (ee)’’ and inserting 

‘‘(dd), and (ff)’’; 

(2) in subclause (II)(aa), by inserting ‘‘(as in effect just before the effective 

date of the Jobs and Opportunity with Benefits and Services for Success Act)’’ 

after ‘‘this section’’; 

(3) by striking subclause (V); and 

(4) in subclause (IV), by inserting ‘‘, except any of such families whose monthly income exceeds twice 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)))’’ before the period. 

SEC. 20. EFFECTIVE DATE. 

Except as provided in section 13(b), the amendments made by this Act shall take 

effect on October 1, 2018. 

14 

1 Historical Poverty Tables: People and Families—1959 to 2016, U.S. Census Bureau. 

2Work Participation Rates—Fiscal Year 2016, Table 6A, Average monthly number of workeligible individuals with hours of participation in work activities, U.S. Department of Health 

and Human Services. 3Work Participation Rates—Fiscal Year 2016, Table 1A, Combined TANF and SSP-MOE 

Work Participation Rates, U.S. Department of Health and Human Services. 4TANF and MOE Spending and Transfers by Activity, FY 2016, U.S. Department of Health 

and Human Services. 5 ‘‘Unemployment Rate Hits 3.9%, a Rare Low, as Job Market Becomes More Competitive,’’ 

New York Times, May 4, 2018. 

I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

H.R. 5861, as amended, the ‘‘Jobs and Opportunity with Benefits 

and Services for Success Act,’’ as ordered reported by the Committee on Ways and Means on May 24, 2018, amends title IV–A 

of the Social Security Act to reauthorize and extend the Temporary 

Assistance for Needy Families (TANF) Program, rename the program as the Jobs and Opportunity with Benefits and Services 

(JOBS) Program, and make other revisions to the law. 

B. BACKGROUND AND NEED FOR LEGISLATION

TANF is our nation’s primary cash assistance and services welfare program. In 1996, it was the centerpiece of successful, Republican-led welfare reform that for the first time introduced work requirements, time limits, and capped funding in the form of a block 

grant. In the early years after 1996, the number of families receiving cash assistance under TANF fell by more than 50 percent because single mothers went to work in record numbers. Poverty 

among female-headed households with children remains lower 

today than before the 1996 reforms.1

Yet over the last two decades the program has lost efficacy, both 

in its focus on work and targeting funds to the truly needy. There 

has been an increasing bipartisan awareness that TANF is not living up to expectations set for it in 1996. Many states have found 

loopholes in the law that have allowed them to stray from the original intent and have lost sight of what the program was intended 

to do—that is, get more parents into the workforce. In 2016, nearly 

40 percent of work-eligible TANF recipients had zero hours of participation in work or training activities.2 Only 11 states were required to meet the 50 percent work participation rate required in 

the law.3 The remaining states had a much lower ‘‘adjusted’’ rate 

using provisions of the law needed in 1996, but are less relevant 

today. In fact, 18 states have an adjusted work participation rate 

of zero, meaning those states are not required to engage anyone in 

work activities. States are spending a combined $30 billion a year 

through TANF and less than half of those dollars are being spent 

on core activities such as cash assistance, work, education, training, or supportive services.4 Instead, as caseloads have dropped, 

many states have diverted TANF funds to fill budget holes or fund 

specialty programs that have little to do with supporting work. 

The economic context for this legislation is important to understand. In December 2017, Congress passed the Tax Cuts and Jobs 

Act (P.L. 115–97). During the first quarter of 2018, the labor market added over 200,000 jobs per month and the unemployment rate 

was at its lowest level since the turn of the century.5, 6 The number 

15 

6 ‘‘Brady Statement on March 2018 Jobs Report,’’ Press Release, Committee on Ways and 

Means, U.S. House of Representatives, April 6, 2018. 7 ‘‘Job Openings and Labor Turnover—March 2018,’’ Bureau of Labor Statistics, U.S. Department of Labor, May 8, 2018. 8 ‘‘U.S. Jobless Claims Hit Lowest Level Since 1969,’’ Wall Street Journal, March 1, 2018. 

9 Bureau of Labor Statistics. ‘‘Employment Situation Summary.’’ Released Friday, June 1, 

2018. 10 ‘‘Where have all the workers gone? An inquiry into the decline of the U.S. labor force participation rate,’’ Brookings Paper on Economic Activity, Alan Kreuger, September 7, 2017. 11 ‘‘Getting men back to work: Solutions from the right and left,’’ American Enterprise Institute, Brent Orrell, Harry J. Holzer, Robert Doar, April 20, 2017. 12 ‘‘Zeroing In on Place and Race,’’ Measure of America of the Social Science Research Council, 

June 10, 2015. 13 ‘‘Factors Affecting the Labor Force Participation of People Ages 25 to 54,’’ Congressional 

Budget Office, February 7, 2018. 

of job openings soared to more than 6 million and the number of 

people filing new applications for unemployment benefits fell to the 

lowest level since December 1969.7, 8 From the perspective of workers or potential workers, the economy is as strong as it has been 

in years. 

Underlying this narrative, has been a pervasive decline in labor 

force participation, particularly among prime-age males, exacerbating workforce challenges faced by employers due to retirements 

by the Baby Boom generation. In May 2018, the labor force participation rate was at 62.7 percent, one of the lowest since 1977.9

Many different factors have contributed to this problem, including 

the country’s opioid epidemic, which some scholars have asserted 

could account for about 20 percent of the observed decline.10 The 

Committee held two hearings in 2017 examining this issue in detail and found that 7 million prime working-age (25–54) men are 

not participating in the labor force. In addition, one in seven 16– 

24 year olds are not in school or working, totaling more than 5.5 

million ‘‘disconnected’’ youth nationwide.11, 12

The number of individuals disconnected from the labor force has 

important implications for TANF and other anti-poverty programs. 

According to the Congressional Budget Office (CBO): 

Changes in labor force participation have significant economic and budgetary implications. A lower labor force participation rate is associated with lower gross domestic 

product (GDP) and lower tax revenues. It is also associated 

with larger federal outlays, because people who are not in 

the labor force are more likely to enroll in certain federal 

benefit programs.13

In sum, too many working-age American adults are not working 

and relying on government-funded help. 

The Committee has held three hearings in 2018 to better understand the ‘‘jobs gap.’’ As displayed in the chart below, the jobs gaps 

reflects the difference between employers’ demand for workers, 

shown as the number of job openings, and the declining number of 

individuals in the labor force, shown as the labor force participation rate. In these hearings, employers from across the country and 

across industries talked about their challenges finding workers. 

Employers said they have good jobs available that do not require 

a college degree, but not enough workers. Many employers have developed training and apprenticeship programs, but they just can’t 

find job ready and reliable workers. Meanwhile, we have millions 

of Americans on the sidelines, disconnected from the workforce and 

16 

14 Income and Poverty in the United States, Table 3. People in Poverty by Selected Characteristics: 2014 and 2015, U.S. Census Bureau. 15 ‘‘The Temporary Assistance for Needy Families (TANF) Block Grant: A Legislative History,’’ 

Congressional Research Service, Gene Falk, November 29, 2017. (R44668) 

welfare caseloads that have not returned to levels prior to the 

2007–2009 recession. 

This chart reflects the need for more workers to help support and 

promote the current period of economic expansion. Increasing work 

among those in poverty is to the benefit of our nation, as well as 

themselves and their children because we know when individuals 

and parents work full time, the poverty rate drops to just 3 percent.14 Many welfare programs provide benefits only to alleviate 

immediate need, yet few provide low-income individuals the tools 

they need succeed in the workforce and move up the economic ladder. 

Throughout the Committee’s hearings, it has learned that welfare recipients often have a difficult time transitioning from welfare into a job and employers may be reluctant to hire individuals 

who may have limited work experience or other barriers. The Committee bill seeks to revitalize the focus on work in TANF and reorient spending towards the kind of work supports, case management, and wrap-around services employers in our hearings said potential workers need. Reauthorization provides an opportunity to 

re-establish the foundational principles that led to TANF’s success 

more than twenty years ago. 

TANF expires in September 2018. Since last being reauthorized 

by the Deficit Reduction Act of 2005 (P.L. 109–171), TANF has 

been extended in short bursts 26 times, often attached to the discretionary appropriations process, even though it is a mandatory 

program whose funding is in the CBO baseline, meaning no offsets 

are needed to extend the program.15 This is in spite of the fact that 

there is widespread recognition that the program is broken. As one 

of our hearing witnesses put it ‘‘we cannot keep hitting the snooze 

button.’’ This Committee takes seriously its responsibility to ensure 


Insert offset folio 18 here HR754.001
17 

taxpayer dollars are being used for their intended purpose and to 

reauthorize expiring programs, providing stability to states and 

program participants. The country’s strong economy paired with a 

worker shortage adds an additional sense of urgency to reauthorizing this program for a full five-year reauthorization period. Now 

is the time to make meaningful reforms to help more Americans 

find jobs and climb the economic ladder to share in the success created by the Tax Cuts and Jobs Act (P.L. 115–97). 

C. LEGISLATIVE HISTORY

Background 

H.R. 5861, the ‘‘Jobs and Opportunity for Benefits and Services 

(JOBS) for Success Act,’’ was introduced on May 17, 2018 by 

Human Resources Subcommittee Chairman Adrian Smith and cosponsored by Full Committee Chairman Kevin Brady as well as 

Representatives Devin Nunes, Lynn Jenkins, Tom Reed, Jim 

Renacci, Jackie Walorski, Darin LaHood, Mike Bishop, Tom Rice, 

Jason Smith, George Holding, Vern Buchanan, Kenny Marchant, 

and Mike Kelly and was referred to the Committee on Ways and 

Means. The legislation’s introduction was preceded by release of a 

discussion draft on May 8, 2018. 

H.R. 5861, as amended, includes several Ways and Means Committee Member bills: • H.R. 5836, the ‘‘Supporting Work through Apprenticeships 

Act’’ by Representative Mike Bishop, co-sponsored by Representatives Adrian Smith, Carlos Curbelo and Jim Renacci includes apprenticeships within the current law definition of onthe-job training. 

• H.R. 5835, the ‘‘Improving Access to Child Care Act’’ by 

Representative. Mike Bishop, co-sponsored by Representative 

Lynn Jenkins—increases the current funding for Child Care 

Entitlement to States portion of the Child Care Development 

Fund (CCDF) to $3.5 billion annually from $2.9 billion annually. 

• H.R. 5843, ‘‘The Benefits to Employment Act’’ by Representative Jason Smith, co-sponsored by Representative Adrian 

Smith requires all work-eligible individuals receiving assistance to participate in work or work preparation activities for 

a minimum number of hours per month in exchange for benefits and expects universal engagement and case management 

to develop and individual opportunity plan. 

• H.R. 5838, the ‘‘Improving Access to Work Act’’ by Representative Darren LaHood, co-sponsored by Representative 

Adrian Smith—adds non-supplantation language to prohibit 

the diversion of federal funds to replace State spending. 

• H.R. 5842, the ‘‘Helping Americans Succeed by Measuring 

Outcomes Act’’ by Representative Tom Reed, co-sponsored by 

Representative Adrian Smith—applies an outcome-based performance accountability system to assess the effectiveness of 

States in increasing employment, retention, and advancement 

among families receiving assistance. • H.R. 5854, the ‘‘Improving Transparency in TANF through 

Data Act’’ by Representative Dave Schweikert, co-sponsored by 

Representative Adrian Smith—requires reporting of full popuVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00017 Fmt 6659 Sfmt 6602 E:\HR\OC\HR754.XXX HR754
18 

lation data, rather than samples, in order to improve transparency and sub-state analysis and adds reporting to capture 

the number of hours per month for each work-eligible individual. • H.R. 5847, the ‘‘Protecting Family Resources and Training 

Options Act’’ by Representative Carlos Curbelo, co-sponsored 

by Representative Adrian Smith—requires program data be 

subject to improper payment reviews consistent with other programs across government to produce a national error rate for 

the program, and clarifies that vocational education training 

includes career technical education and removes the 12-month 

time limit on such training and education. • H.R. 5853, the ‘‘Preserving Welfare for Needs Not Weed 

Act’’ by Representative Dave Reichert—prohibits the use of an 

electronic benefit card to get cash at any establishment offering marijuana for sale. • H.R. 4167, the ‘‘Coordinating Assistance for TANF Recipients Act’’ by Representative Jackie Walorski, co-sponsored by 

Representative Adrian Smith—establishes Coordinated Case 

Management Demonstration Projects to help individuals increase their employment and self-sufficiency. • H.R. 1352, the ‘‘Preparing More Welfare Recipients for 

Work Act’’ by Representative Jim Renacci, co-sponsored by 

Representative Adrian Smith—eliminates the distinction between core work activities and other specified work activities 

related to training and education. 

Committee hearings 

The Human Resources Subcommittee of the Committee on Ways 

and Means has held seven hearings featuring 31 witnesses during 

the 115th Congress to discuss declining labor force participation, 

the jobs gap, and reauthorization of TANF. These hearings included witnesses representing local, employer, and federal perspectives on the jobs gap. A legislative hearing on a discussion draft for 

reauthorizing TANF, which immediately preceded the Committee 

markup, included feedback from poverty-policy and workforce development experts on how TANF reauthorization could be used as 

a building block to help close the jobs gap. The Committee bill is 

a result of what the Committee learned from these hearings and 

feedback received from witnesses and numerous outside stakeholders on the May 8, 2018 discussion draft released by the Committee. 

These hearings included: 

• February 15, 2017: Human Resources Subcommittee hearing on ‘‘Geography of Poverty’’ 

• May 17, 2017: Human Resources Subcommittee hearing on 

‘‘Opportunities for Youth and Young Adults to Break the Cycle 

of Poverty’’ 

• September 6, 2017: Human Resources Subcommittee hearing on ‘‘Missing from the Labor Force: Examining Declining 

Employment among Working-Age Men’’ 

• April 12, 2018: Human Resources Subcommittee hearing 

on ‘‘Jobs and Opportunity: Local Perspectives on the Jobs Gap’’ 

• April 17, 2018: Full Committee hearing on ‘‘Jobs and Opportunity: Federal Perspectives on the Jobs Gap’’ 

19 

• April 25, 2018: Human Resources Subcommittee hearing 

on ‘‘Jobs and Opportunity: Employer Perspectives on the Jobs 

Gap’’ 

• May 9, 2018: Human Resources Subcommittee hearing on 

‘‘Jobs and Opportunity: Legislative Perspectives on the Jobs 

Gap’’ 

Committee action 

On May 8, 2018, Representative Adrian Smith released a discussion draft of the JOBS for Success Act. Following the release of the 

discussion draft, on May 9, 2018, the Ways and Means Subcommittee on Human Resources held the hearing titled ‘‘Jobs and 

Opportunity: Legislative Options to Address the Jobs Gap.’’ On 

May 17, 2018, Human Resources Subcommittee Chairman Adrian 

Smith, Full Committee Chairman Kevin Brady, and other Members 

of the Committee on Ways and Means introduced H.R. 5861, the 

‘‘Jobs and Opportunity for Benefits and Services (JOBS) for Success 

Act.’’ The Committee on Ways and Means considered H.R. 5861 on 

May 23–24, 2018. On May 24, 2018, the bill was ordered favorably 

reported to the House of Representatives, as amended, by a roll call 

vote of 22 yeas to 14 nays. 

II. EXPLANATION OF THE BILL 

SECTIONS 1, 2, AND 3: SHORT TITLE, TABLE OF CONTENTS, AND

REFERENCES

Present law 

No provision. 

Explanation of provision 

These sections contain the short title of the bill, the Jobs and Opportunity with Benefits and Services (JOBS) for Success Act, and 

the table of contents. The amendments made by the bill are to sections of the Social Security Act, unless otherwise specified. 

Reason for change 

The Committee believes the short title, table of contents, and references accurately reflect the policy actions included in the legislation. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 4: RE-NAMING OF PROGRAM

Present law 

Title IV–A of the Social Security Act is titled ‘‘Block Grant to 

States for Temporary Assistance for Needy Families,’’ commonly 

known as TANF. 

Explanation of provision 

The Committee bill renames Title IV–A as the ‘‘Jobs and Opportunity with Benefits and Services for Success Program,’’ or JOBS 

program. 

20 

16 Characteristics and Financial Circumstances of TANF Recipients, Fiscal Year 2016, Table 

11: TANF Families by Public Assistance program, U.S. Department of Health and Human Services. 

Reason for change 

The Committee re-names the program to underscore the legislation’s goal of refocusing the program on the tangible outcome of 

work. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 5: HELPING MORE AMERICANS ENTER AND REMAIN IN THE

WORKFORCE

Present law 

Authorization and appropriations for the Temporary Assistance 

for Needy Families (TANF) block grant and certain related programs expire at the end of Fiscal Year (FY) 2018. The related programs include the TANF contingency fund, healthy marriage and 

responsible fatherhood grants, the Child Care Entitlement to 

States, tribal TANF programs, and special matching grant to the 

territories for TANF and Title IV–E activities under section 1108(b) 

of the Social Security Act. 

Explanation of provision 

The Committee bill authorizes and funds JOBS and certain related programs for FY2019 through FY2023. The JOBS appropriation for each of those years is maintained at the current level of 

$16.567 billion. Healthy marriage and responsible fatherhood 

grants are funded at their current level ($75 million for each set 

of grants) over that period. The appropriation for the Child Care 

Entitlement to States is increased from $2.917 billion in FY2018 to 

$3.525 billion for each of FY2019 through FY2023. The authorities 

for tribal TANF programs and the matching grant for the territories are extended through FY2023. 

Reason for change 

These funding extensions and the increase in child care entitlement funding are intended to help more Americans enter and remain in the workforce. A five-year authorization period provides 

states, service providers, and most importantly the families served 

by these programs certainty lacking in the program over the last 

13 years, during which time there has been an average of two 

short-term extensions each year. 

The Committee strongly believes maintaining the current funding level for the program is appropriate because there is a recognition TANF is just one of the more than 80 programs collectively 

spending more than $1 trillion annually to provide benefits and 

services to low-income families. Too often legislative actions and 

funding discussions at the federal level happen in a vacuum. The 

nature of Congressional Committee jurisdiction and structure creates silos between otherwise related programs with similar goals 

serving the same population. For example, nearly all TANF families are also receiving Medicaid and benefits from the Supplemental Nutrition Assistance Program (SNAP).16 Respectively, these 

21 

17 Justification of Estimates for Appropriations Committees, Administration for Children and 

Families, U.S. Department of Health and Human Services, FY 2019. 18TANF Contingency Fund Awards, 2016, U.S. Department of Health and Human Services. 

programs are under the jurisdiction of the Committee on Agriculture and Committee on Energy and Commerce. Spending on 

these programs has not returned to pre-recession levels and there 

are still millions of Americans disconnected from work. 

Further, the idea that additional funding is needed to fix a program that has essentially become a welfare program for states trying to fill budget holes is confounding and overly-simplistic. This 

legislation is focused on making meaningful reforms to restore accountability and re-claim dollars already being spent to delivering 

meaningful, lasting results that move people off of welfare and into 

the workforce. 

The one exception involving additional funding is for child care. 

The Committee believes the TANF Contingency Fund, which was 

intended to cover increased demands on for the underlying block 

grant during economic downtowns, has become a slush fund favoring a limited number of states. The FY 2019 President’s Budget 

recommends eliminating the Contingency Fund, saying: ‘‘Recent experience has demonstrated that the Contingency Fund is an ineffective mechanism for providing targeted response to economic 

downturns.’’ 17 Prior to that, the Obama Administration’s budgets 

called for repurposing the Contingency Fund to support work as 

well. Instead of maintaining the current Contingency Fund, the 

Committee bill would allow States to set-aside 15 percent of their 

block grant as ‘‘rainy-day’’ funds for periods of increased demand 

for cash assistance and services during economic declines in Section 17. In FY 2016, all States except Wyoming qualified for dollars 

from the Contingency Fund, but only 19 States received funds. 

Among those that received funds, 10 States had unemployment 

rates below the national average of 4.9 percent including 3 states 

with unemployment rates lower than 4 percent. 

The following states received TANF Contingency Funds in FY 

2016: 18

22 

The Committee believes a more effective use of the Contingency 

Fund would be to support employment among low-income working 

families by providing expanded access to child care for those receiving TANF assistance. The Committee strongly believes in promoting two-parent households and continued responsibility when a 

parent is outside the household, but also recognizes for many families child care is an important work support. It is the Committee’s 

intent to ensure spending from already appropriated money is 

geared towards actually moving people off of welfare and into work, 

and the Committee believes shifting the use of these funds will 

help better accomplish that goal. 

Using the more than $600 million per year currently spent 

through the Contingency Fund to increase child care through the 

Child Care Entitlement to States accomplishes two additional 

goals. First, it provides accountability and transparency involving 

the use of funds, including by better identifying the number of children being served and ensuring child care provided meets basic 

health and safety protections. Under currently law, Contingency 

Funds are only reported by spending category, providing no details 

about how the dollars are actually spent or what families are being 

served. Second, it provides fair access to the funds through the 

child care formula for all states and low-income families across the 

country, rather than a select group of states who have figured out 

how to draw down funds before others. 


Insert offset folio 24 here HR754.002
23 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 6: EXPECTING UNIVERSAL ENGAGEMENT AND CASE

MANAGEMENT

Present law 

Each state is required to conduct an employability assessment 

for each TANF assistance recipient who: (1) has attained 18 year 

of age, or (2) does not have a high school diploma (or equivalent) 

and is not attending secondary school. The state must assess the 

skills, prior work experience, and employability of each recipient. 

Based on the employability assessment, the state, at its option, 

may develop an individual responsibility plan (IRP) for the individual. The IRP is designed to move individuals to obtain and keep 

employment in the private sector. The state must consult with the 

individual in the development of the plan. The IRP sets forth an 

employment goal, obligations of the individual, and services the 

state will provide to the individual, and may require the individual 

to undergo appropriate substance abuse treatment. 

In addition to any other penalties, the state may reduce assistance, by the amount the state considers appropriate, to a family 

with an individual who fails without good cause to comply with an 

IRP. The state has sole discretion in the exercise of authority regarding the IRP. 

Explanation of provision 

The Committee bill requires states to conduct an assessment for 

each work-eligible individual receiving assistance. The definition of 

who is ‘‘work-eligible’’ is the same as the definition in existing 

TANF regulations promulgated by the Department of Health and 

Human Services (HHS). Each work-eligible individual must have 

an assessment of her or his education, skills, prior work experience, 

work readiness, and barriers to work. Additionally, the assessment 

is to consider the well-being of the children in the individual’s family and, where appropriate, activities or resources (including those 

funded by the Maternal, Infant, and Early Childhood Home Visiting program) to improve the well-being of the children. 

Based on the assessment, states are required to develop an Individual Opportunity Plan (IOP). The plan must be developed in consultation with the individual and must be signed by the individual. 

The plan must include: 

• a personal responsibility agreement, in which the individual acknowledges receipt of publicly-funded benefits and responsibility to comply with program requirements in order to 

receive the benefits; 

• the obligations of the individual to participate in work activities, and the number of hours per month for which the individual will so participate, consistent with the hours required 

by the present law work participation standard (e.g., 20 hours 

per week for a single parent with a child under the age of six, 

30 hours for other single parents, and higher hours for twoparent families); 

• an employment goal and planned short-, intermediate-, 

and long-term actions to achieve the goal, which, in the case 

24 

of an individual who has not attained 24 years of age and is 

in secondary school or the equivalent, may be completion of 

secondary school or the equivalent as an intermediate action 

toward an employment goal; and 

• the job counseling and other services the state will provide 

to the individual to enable the individual to obtain and keep 

employment in the private sector. 

The IOP may include referral to appropriate substance abuse or 

mental health treatment. 

The assessment and the IOP must be completed within 60 days 

of the individual’s becoming eligible for assistance. Further, a 

meeting with the work-eligible individual must occur not less frequently than every 90 days to review the IOP, discuss with the individual progress made toward meeting the goals of the plan, and 

to update the plan as necessary. For those already receiving assistance on the date of enactment, the assessment and the plan must 

be completed within 180 days. The JOBS universal engagement 

provision retains TANF’s language permitting a state to sanction 

individuals who fail to comply with their IOP. 

Reason for change 

Expecting work in exchange for benefits is a foundational principle of this Committee’s work on welfare reform and a pillar of the 

1996 reform efforts that created TANF. The expectation in current 

law is that states must engage 50 percent of individuals in work 

activities. This legislation sets forth the expectation that states engage all work-eligible individuals in work activities through universal engagement and case management. 

There are two important levels of accountability from which to 

view the structure of the JOBS program. The first is at the individual level and the second is at the state level. These policies are 

complementary and inter-related. 

Universal engagement and case management are about the covenant between the family seeking help and the caseworker, on behalf of the government, and that both sides will do their part to 

help each family earn their own success. It places a value on case 

management practices focusing on people, not programs, and, while 

promoting work, acknowledging and potentially addressing underlying challenges that could be holding a family back. 

Case management is not about checking boxes and pushing 

paper. The human connection is pivotal. One witness at our Jobs 

and Opportunity hearing series, Heather Terenzio, an employer 

from Boulder, Colorado who started the first-ever software apprenticeship program, said ‘‘If someone comes alongside that disengaged 


Insert offset folio 26 here HR754.003
25 

19 Hearing on Jobs and Opportunity: Local Perspectives on the Jobs Gap, Committee on Ways 

and Means, Subcommittee on Human Resources, April 12, 2018. 20 Hearing on Jobs and Opportunity: Legislative Perspectives on the Jobs Gap, Committee on 

Ways and Means, Subcommittee on Human Resources, May 9, 2018. 21 ‘‘TANF work-eligible individuals by state,’’ Congressional Research Service memo from Gene 

Falk to House Subcommittee on Human Resources, May 22, 2018. 22 ‘‘Employment Requirements in Benefit Programs Needed to Reduce Poverty,’’ Statement before the House Committee on Education and Workforce, Robert Doar Morgridge Fellow in Poverty Studies, American Enterprise Institute, March 15, 2018. 

person—coaches them, believes in them—all that doubt washes 

away and they can be successful.’’ 19 Another witness, Jennifer 

Meek-Eells, executive director of a workforce development board in 

Canton, Ohio, said ‘‘Case managers need to be able to connect and 

help people set goals, think about the future and set small steps 

that show them they can be successful and that there is a path forward. Case management means engaging participants in meaningful employment and training activities that can help them build 

lifelong, sustainable careers.’’ 20

Under this section, within 60 days of being approved for assistance in the JOBS program, states are to provide each work-eligible 

individual an opportunity to sit down with a case manager to develop an individual opportunity plan. For individuals who are already receiving assistance as of the effective date of this bill, states 

are provided six months to comply with this provision. According 

to the Congressional Research Service, the number of work-eligible 

individuals receiving TANF assistance in FY 2016 was approximately 732,000 nationwide.21 The Committee believes given this 

relatively low number (i.e., estimates suggest that there are between 9.5 and 11 million work-capable adults receiving SNAP) 22

this is an appropriate timeframe for compliance. 

This initial meeting should include an up-front, transparent discussion of the expectations for that individual to continue receiving 

assistance. Individuals must sign a personal responsibility agreement acknowledging and providing their consent and understanding of what is expected of them and consequences for failing 

to meet program requirements. This includes informing the individual of the number of hours per week of work activities they are 

expected to complete pursuant to section 407(c) of the Social Security Act. 

Case managers are then to conduct an assessment to determine 

the education, skill level, and strengths of the individual to inform 

development of the individual opportunity plan. The plan should be 

developed jointly and oriented toward consideration of short and intermediate steps the individual needs to take toward the ultimate 

goal of obtaining a job. The expectation is that states will document 

in the plan the activities the individual will engage in to meet the 

minimum hourly work requirement pursuant to section 407(d) of 

the Social Security Act. The individual opportunity plan is to be reviewed at least every 90 days to re-visit whether such activities 

continue to be appropriate, whether they need to be modified, and 

to determine progress toward goals. This review should also include 

re-verification of client eligibility, including household income and 

assets. 

Development of individual opportunity plans should take into account any services needed to support the family holistically, including access to child care, or in the case of pregnant or new mothers, 

making connections with the Maternal, Infant, and Early ChildVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00025 Fmt 6659 Sfmt 6602 E:\HR\OC\HR754.XXX HR754
26 

hood Home Visiting program in Title V of the Social Security or 

other programs aimed at improving birth outcomes, reducing risks 

associated with infant mortality, improving the well-being of children, and increasing economic self-sufficiency, defined as employment. For individuals who are determined to have mental health 

or substance abuse problems, the plan may include appropriate referrals to behavioral, mental health, or other professionals that 

provide treatment. For individuals under the age of 24, emphasis 

should be placed on completion of high school or obtaining a GED 

as an important first step toward finding lasting employment. 

The expectations for case managers serving individuals in the 

JOBS program is greater than under current law. High-quality 

interactions between caseworkers and clients are the linchpin to 

helping individuals succeed in the workforce. States should be purposeful and thoughtful about how they transition to more meaningful case management practices required under this bill. This may 

include re-visiting hiring processes related to the necessary qualifications of case managers, establishing manageable client caseload 

ratios, and providing case managers access to training on topics 

such as how to effectively conduct a needs assessment, coaching, 

family-centered practices, and goal setting. To reiterate a theme 

that will appear throughout this report, the JOBS program should 

be operating collaboratively in conjunction with other state, federal, 

faith-based, private, and charitable organizations and programs 

serving low-income families and children. Therefore, case managers 

need to be experts in their local community resources and have an 

awareness of organizations and programs, such as food pantries, 

health clinics, and job centers, that serve families so they can appropriately connect individuals to additional services they may 

need. 

In implementing this section, states may choose to take a performance-based contracting approach that relies on non-profit agencies and community-based organizations to provide case management for individuals in the JOBS program and holds those contractors responsible for the same employment, retention and earnings 

outcomes that the state is responsible for meeting. While there are 

a number of ways states and localities will choose to implement 

this aspect of the program, the important thing is case management practices and coordination of existing resources is recognized 

as key to the program’s success. 

Effective date 

These provisions are delayed for an additional six months beyond 

the effective date of October 1, 2018 for funding. 

SECTION 7: PROMOTING ACCOUNTABILITY BY MEASURING WORK

OUTCOMES

A. PERFORMANCE STANDARDS FOR STATES

Present law 

Each state is required to have ‘‘engaged in work’’ a minimum 

percentage of its assisted families who include a work-eligible individual. This percentage is known as the minimum work participation rate (WPR). The minimum WPR is a performance standard 

that applies to the state, not directly to work-eligible individuals. 

27 

The standard applies to the combined number of families in TANF 

and in separate state programs if they have expenditures countable 

toward the TANF state spending (‘‘maintenance of effort’’ or MOE) 

requirement. There are two standards a state must meet: one with 

respect to all families and another with respect to two-parent families. For all families, the minimum WPR is 50 percent minus the 

state’s caseload reduction credit. For two-parent families, the minimum WPR is 90 percent minus the state’s caseload reduction credit. 

The caseload reduction credit represents a percentage point reduction in the statutory minimum percentage of families a state 

must have engaged in work (either 50 or 90 percent) equal to the 

percent change in the caseload from FY 2005 to the prior fiscal 

year. The credit disregards the impact on the caseload from 

changes in state policy since FY 2005. Additionally, HHS regulations allow states to count as caseload reduction families aided by 

state MOE funds spent in excess of the minimum amount of state 

spending required under the MOE. 

The actual WPR a state achieves is the (simple) average for each 

month of the fiscal year of the number of families with a work-eligible individual determined to be ‘‘engaged in work’’ during the 

month divided by the number of families with work-eligible individuals who are not disregarded from the calculation of the WPR. Separate WPRs are computed for all families and for two-parent families. States have the option to disregard the following families with 

a work-eligible adult from the computation of the WPR: • Families composed of a single custodial parent caring for 

a child under the age of 1 year. This disregard is limited to 12 

months in a lifetime; and • Families receiving assistance from a tribal TANF program 

or tribal work program. 

States are required to disregard families that are subject to a 

sanction for refusing to participate in work activities. The disregard is limited to 3 months during the preceding 12 months. 

A state with a WPR less than its minimum requirement (after 

the application of the caseload reduction credit) is at risk of having 

its TANF grant reduced. The maximum penalty for the first failure 

to meet the work participation standard is a reduction of 5 percent 

of the state’s family assistance grant. For each subsequent failure, 

the penalty is increased by a maximum of 2 percentage points. 

HHS may reduce the penalty based on the degree of noncompliance, if the state is an economically needy state as defined for the 

contingency fund, or because of extraordinary circumstances. 

Under HHS regulations, the penalty for failure to meet the twoparent standard is pro-rated to the share of a state’s total caseload 

that represents two-parent families. The penalty on the state may 

be waived for good cause. A state that does not meet its minimum 

WPR may also enter into a corrective compliance plan, and have 

the penalty waived if it subsequently met its minimum standard. 

Explanation of provision 

The Committee bill replaces the minimum WPR with outcome 

measures for purposes of state accountability. However, it maintains the current rules for being considered ‘‘engaged in work’’—in 

terms of work activities and hours—and applies them directly to 

28 

work-eligible individuals through their Individual Opportunity 

Plan (IOP). 

The Committee bill establishes outcome measures to provide accountability for state JOBS programs. It requires HHS to establish 

a system to assess outcomes, based on measures used in the Workforce Innovation and Opportunity Act (WIOA) system. The Secretary of HHS and each state will jointly establish performance levels for the outcome measures, taking into account levels in other 

states, adjusted among the states for differences in economic conditions and caseload characteristics. The performance levels must 

also promote continuous improvement. The outcome measures are: 

1. The job entry rate, defined as the percent of individuals 

who were work-eligible individuals at the time of exit and who 

were in unsubsidized employment in the 2nd quarter after 

exit; 

2. The job retention rate, defined as the percent of individuals who were work-eligible individuals at the time of exit and 

who were in unsubsidized employment in both the 2nd and the 

4th quarter after exit; 

3. The earnings measure, defined as the median earnings of 

individuals who were work-eligible individuals at exit and were 

in unsubsidized employment during the second quarter after 

exit; and 

4. The high school completion rate, defined as the percent of 

individuals who were work-eligible individuals at the time of 

exit, were under the age of 24, lacked a high school diploma 

or equivalent when they entered the program, and received a 

high school diploma or equivalent while they received JOBS 

assistance. 

An ‘‘exit’’ is defined as ceasing to receive JOBS assistance or 

ceasing to participate in a JOBS-funded subsidized job program (including apprenticeships). States in which JOBS is a partner in the 

WIOA ‘‘one-stop’’ system have the option to establish an alternative 

definition of ‘‘exit’’ to align that definition with that in other workforce programs. 

In addition to separate performance measures, a composite measure of performance is computed by combining information as follows: 40 percent is based on the job entry rate, 25 percent is based 

on the job retention rate, 25 percent is based on the earnings measure, and 10 percent is based on the high school completion rate. In 

assessing annual performance, these measures are to be statistically adjusted (as in WIOA) for changes in economic conditions 

and caseload characteristics. 

States that fail to meet performance targets for the outcome 

measures described in this section are subject to the same penalty 

outlined at section 409(a)(3) of the Social Security Act. As stated 

above, the maximum penalty for the first failure is a reduction of 

5 percent of the state’s annual family assistance grant. For each 

subsequent failure, the penalty is increased by a maximum of 2 

percentage points per year. 

Reason for change 

This section replaces the work participation rate, and instead establishes outcome measures as the primary state accountability 

mechanism in the JOBS program. For the first time, the federal 

29 

government will hold states financially accountable for achieving 

actual results helping parents to get and keep a job. 

The current work participation rate structure is plagued by gaming and loopholes that states have become increasingly adept at 

taking advantage of over the years. This accountability mechanism 

has essentially been vitiated by provisions built into the law that 

had the well-reasoned intent of incentivizing states to reduce caseload and invest more of their own state funds into the program. 

These ‘‘credit’’ mechanisms have allowed 18 states to reduce their 

required work participation rate to zero. Only 11 states actually 

have an effective work participation rate of 50 percent established 

in current law. Because the measure is based on work activity 

while an individual is on the program, states have also gamed the 

rate using what is referred to as ‘‘small checks’’ or ‘‘earnings supplement programs.’’ For example, states use TANF dollars to provide ‘‘assistance’’ checks in small amounts to individuals receiving 

SNAP who are already working. These states are artificially providing a nominal amount of assistance to individuals who would 

not otherwise be on the caseload, for the sole purpose of meeting 

the work participation rate. This perverse gaming of program rules 

is hardly what the authors of the 1996 welfare reform law had in 

mind. 

Further, meeting the work participation rate in many states has 

devolved into a pro-forma exercise where TANF funds are used to 

contract with for-profit providers to create ‘‘work experience’’ programs, many of which amount to sheltered workshops where clients are given menial tasks disconnected from the skills needed in 

the job market. TANF dollars are used to pay outside contractors 

that specialize in developing and running these programs for the 

sake of being able to more easily ‘‘count’’ recipient hours toward 

meeting the work participation rate with little to no regard for actual employment-readiness needs of individual recipients. 

The Committee’s conclusion is that the current accountability 

mechanism is not salvageable, nor is it consistent with the Committee’s desire to hold states accountable for whether individuals 

get a job and keep a job. Instead of process measures that focus on 

taking attendance and counting participation in activities, the 

Committee bill adopts outcome measures including job entry, job 

retention, median earnings, and high school completion after an individual ceases to receive assistance. These measures establish the 

goal of helping individuals achieve permanent independence from 

assistance, rather than continuously cycling on and off the program. 

The four outcome measures adopted in this section are similar to 

those adopted by the workforce system under the Workforce Innovation and Opportunity Act (WIOA, P.L. 133–78). The four indicators measure whether an individual that formerly received a JOBS 

benefit is: (1) in unsubsidized employment in the 2nd quarter after 

exit (i.e., 6 months after leaving the program); (2) in unsubsidized 

employment in the 2nd and 4th quarter after exit (i.e., is employed 

both 6 months and a year after leaving the program, which does 

not have to be with the same employer); (3) median earnings of the 

individual who is in unsubsidized employment in the 2nd quarter 

after exit (placing a value on job quality); and (4) for individuals 

receiving a JOBS benefit who are under 24 years of age, whether 

30 

23 Characteristics and Financial Circumstances of TANF Recipients: TANF Adult Recipients 

by Educational Attainment, FY 2016, Table 20, U.S. Department of Health and Human Services. 24P.L. 113–128. 

they complete high school or its equivalency either while continuing to receive benefits or within one year after leaving the program. The 4th measure, high school completion or equivalency (i.e., 

GED), is particularly important given that nearly 40 percent of 

TANF recipients do not have a high school diploma.23

The Committee seeks to better align the JOBS program with programs that make up the workforce system in order to better leverage existing resources and connect individuals receiving assistance 

to employment opportunities. The passage of WIOA in 2014 made 

TANF a mandatory partner with American Job Centers (formerly 

one-stops) and prioritized services for low-income individuals receiving public assistance and out-of-school youth, creating overlap 

in the populations served. The primary purpose of WIOA is to ‘‘increase, for individuals in the United States, particularly those individuals with barriers to employment, access to opportunities for the 

employment, education, training, and support services they need to 

succeed in the labor market.’’ 24 The Committee has embraced similar goals in drafting this legislation. 

The WIOA workforce system is run through local Workforce Development Boards which act as a broker between employers in the 

community and job seekers and work to promote economic growth. 

Workforce Boards have the express purpose of developing expertise 

in the local labor market and in-demand jobs—by developing relationships with businesses in the community in order to understand 

what types of training and skill sets employers need. In addition, 

American Jobs Centers have the core principles of one stop service 

delivery, co-location of services, and access to partner organizations, including community colleges and career technical centers. 

All of these attributes make WIOA an important partner. Adopting 

similar outcome measures can help facilitate better collaboration. 

Program administrators that have shared goals are more likely to 

share resources and expertise. 

In addition, the bill promotes alignment with the workforce system by: (1) allowing states that have included TANF as a mandatory one-stop partner (WIOA provides state governors the ability to 

opt out) to adopt common exit measures for the JOBS program and 

other WIOA-funded programs to promote co-enrollment; and (2) allowing states to transfer funds from the JOBS program (up to 50 

percent) to WIOA Title 1 employment and training programs to 

better leverage resources across programs. States that transfer 

funds must provide assurances those funds will be used to serve 

JOBS-eligible participants and may reserve up to 15 percent for 

statewide workforce investment activities, with the remainder to be 

distributed to local Workforce Development Boards. The intent of 

the Committee is that the expertise and capacity developed in 

these respective programs will be used in coordination to connect 

individuals receiving JOBS benefits (and other forms of public assistance) to in-demand jobs in their local communities. 

The advantage of an outcome-based performance system is measuring and getting more of the desired outcome—in this case, work. 

The two main criticisms of an outcome-based performance measVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\HR754.XXX HR754
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25 ‘‘State Welfare Reforms: TANF Time Limits by the Numbers,’’ Council of State Governments, June 2, 2016. 

urement system are that it incentivizes ‘‘creaming’’ (i.e., only allowing the most likely to succeed to enter your program) and never 

exiting a person (letting them sit on the program indefinitely because states don’t think they’ll show up as a positive in their outcome measures). The Committee bill anticipates these policy hazards (in no small part through studying what has been learned 

from implementation of the WIOA measures) and seeks to address 

both. 

First, the bill requires HHS to apply a statistical adjustment 

model when negotiating performance outcomes with states. Targets 

are set based on the characteristics of each state’s caseload. The 

model will adjust state targets based on the number of barriers to 

employment reflected in the caseload demographics. States that 

seek to ‘‘cream’’ or avoid the hardest-to-serve will have higher targets to meet. As for the hazard of never ‘‘exiting’’ people, this is 

countered by the fact there remains a 5-year federal time limit for 

receiving assistance (in fact 16 states have imposed a stricter time 

limit of 3 years or less).25 In addition, states wishing to game the 

system in this manner face a significant opportunity cost that includes continuing to pay the family a check every month and prolonging the state’s responsibility to engage with the recipients and 

monitor the individual opportunity plan every 90 days. 

The intent of the Committee is that HHS will issue regulations 

through notice and comment rulemaking to establish the operation 

of this new performance accountability system using the measures 

and weights described in the bill. HHS is provided two years to 

issue regulations and FY 2020 is identified as a baseline year to 

be used to establish targets for each performance measure in succeeding fiscal years. The bill does not specify federal benchmarks 

or targets because there is recognition that a ‘‘one size fits all’’ approach to measurement would fail to take into account state demographic and caseload characteristics or changes over time in state 

economies that impact the ability to get people into jobs. While variation is allowed among states, the Committee expects the benchmarks to account for how the levels compare with other states and 

to promote continuous improvement. In the interim period between 

the effective date of this legislation and FY 2021, which will be the 

first year in which states are subject to a penalty for not meeting 

performance benchmarks, the Committee expects HHS to suspend 

any existing corrective compliance or penalty determinations related to the work participation rate. 

The expectation is HHS will work in close collaboration with the 

Department of Labor (DOL), which oversees WIOA, to learn from 

what has already been done. DOL negotiates performance levels for 

outcome measures in the workforce system every three years with 

all the states. They do this through ten regional DOL offices located throughout the country. HHS has the same regional office 

structure that could accommodate this process. As part of the negotiating process, states must be able to provide sufficient data and 

justification using rigorous analysis of the latest data available to 

inform proposed targets for each of the measures. HHS and DOL 

should work collaboratively to exchange information and, to the exVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00031 Fmt 6659 Sfmt 6602 E:\HR\OC\HR754.XXX HR754
32 

tent possible, align processes and procedures for negotiating performance targets with states. 

Effective date 

The provision is effective on October 1, 2020. 

B. PUBLICATION OF OUTCOME MEASURES

Present law 

HHS is required to submit an annual report to Congress that includes the work participation rates states have achieved. (In practice, HHS typically posts on its website work participation information in advance of the full annual report to Congress.) 

Explanation of provision 

The Committee bill requires HHS to operate a website with a 

regularly updated dashboard that profiles each state JOBS program, including information on: (1) the established performance 

measures for each state, (2) levels of performance achieved by each 

state, and (3) information on the adjustments to the performance 

measures for caseload characteristics or economic conditions for 

each state. The dashboard will also include information for each 

state’s caseload characteristics, including information on child-only 

cases; hours of participation in work activities; information from an 

improper payment review; links to JOBS state plans; and any penalties assessed on the state. 

Reason for change 

The Committee bill maintains current law sanctions for both 

states and individuals, but it also introduces a higher degree of 

transparency and accountability into the $30 billion per year program. Currently, only general spending categories are reported on 

the financial reporting form, which makes it difficult to understand 

how spending is associated with improved results or better outcomes for individuals. The Committee believes increased transparency using an easy to understand performance grading system 

compliments the existing penalty process and acts as a strengthened joint accountability mechanism. 

Many federal, state, and local government agencies use dashboards both for internal organizational management and to disseminate performance measures for transparency and accountability. A dashboard provides a visual display of the more important information needed to assess agency competency at achieving 

objectives, and can be consolidated and tracked over time. It also 

provides the ability to integrate data from different sources, including expenditure, administrative, and performance data to see how 

those elements fit together as a whole. This makes it easier for the 

general public, employers, and lawmakers to understand otherwise 

disparate sets of complex data, boiled down into coherent information that can help inform a range of decisions. 

As indicated in the prototype diagram below, the JOBS performance dashboard will include information for each state about 

whether the state met, exceeded, or failed each performance measure and an overall grade for aggregate performance. It will also 

show the percent of individuals on the caseload with zero hours of 

33 

participation in work activities and reasons for non-activity. Currently, nearly 40 percent of work-eligible individuals receiving assistance are not participating in any hours of work activity. The 

dashboard includes information on the number of child-only cases 

receiving benefits (which have no work requirement or time limit) 

and the reason why a case is child-only. In addition, as described 

in Section 10, the dashboard will include information on the results 

of improper payments case file reviews, including types of errors 

associated with improper payments. It also includes a link to the 

state plan, which includes the documentation and justification for 

policies and procedures, including any additional work activities 

identified by states, many of which are the subject of section 14. 

By highlighting these particular data points, the Committee intends the dashboard will drive states to seek to improve these aspects of the JOBS program as those of the greatest importance and 

strategically excludes those that are not part of the program’s core 

purposes. The Committee does not believe any additional legislative actions need to be taken at this time to impose penalties related to these data elements (apart from the outcome measures 

which are subject to the 5 percent penalty in existing law), but 

does recommend additional sanctions be considered in future reauthorizations if performance is not at acceptable levels. 

The legislation provides a set-aside of 1⁄4 of 1 percent of program 

funds for the Administration for Children and Families at HHS to 

develop and manage the dashboard, with the expectation that the 

agency will use the best evidence available given what has been 

learned from other government websites about what works to effectively communicate these types of data, including ensuring users 

can easily navigate the dashboard. This also establishes the expectation the dashboard is updated to reflect the most current information, and data is available to establish a record of performance 

over time and to make historical comparisons. 


insert graphic folio 35 HR754.004
34 

Effective date 

The provision is effective on October 1, 2018. 

C. ENGAGEMENT IN WORK ACTIVITIES

Present law 

To be counted toward meeting the state’s minimum work participation rate (WPR), a work-eligible individual must meet the criteria for being ‘‘engaged in work.’’ To be considered engaged in 

work, a work-eligible individual must participate for a minimum 

number of hours (discussed below) in one or more of the following 

work activities: 

1. unsubsidized employment; 

2. subsidized private sector employment; 

3. subsidized public sector employment; 

4. work experience; 

5. on-the-job training; 

6. job search and job readiness activities; 

7. community service programs; 

8. vocational educational training (not to exceed 12 months); 

9. job skills training directly related to employment; 

10. education directly related to employment for those without a high school degree or equivalent; 

11. satisfactory attendance at a secondary school, for those 

without a high school degree or equivalent; and 

12. provision of child care services to an individual in a community service program. 

The Deficit Reduction Act of 2005 (P.L. 109–171) required HHS 

to ‘‘define’’ each of the listed activities and there is currently a regulatory definition for each of these activities. 

There are statutory limitations on counting participation in some 

of these activities toward a state meeting its minimum WPR. Specifically, an individual may be counted as ‘‘engaged in work’’ 

through job search for up to 6 weeks in a 12-month period, or 12 

weeks in such a period if the state meets certain criteria of high 

and increasing unemployment and Supplemental Nutrition Assistance Program (SNAP) caseloads. Further, an individual cannot be 

counted as participating in job search in a week that follows 4 consecutive weeks of job search participation. An individual can be 

considered participating in job search for part of a week, 3 or 4 

days, only once in a fiscal year. 

To be considered ‘‘engaged in work’’ for the all-family WPR, single-parent families with all children aged 6 and older and two-parent families must participate in activities for at least 30 hours per 

week. Of those 30 hours per week, at least 20 hours per week must 

be in ‘‘core’’ activities: unsubsidized employment, subsidized private 

sector employment, subsidized public sector employment, work experience, on-the-job training, job search and readiness, community 

services and vocational educational training. A state may deem a 

single parent caring for a child under age 6 ‘‘engaged in work’’ if 

the recipient is engaged in activities for at least 20 hours per week. 

For such families, all hours must be in core activities. 

For the two-parent WPR, both parents may combine their hours 

of activities to meet the requirement for being considered ‘‘engaged 

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35 

funded child care, the parents must participate at least 35 hours 

per week (with 30 hours per week in ‘‘core’’ activities); for two-parent families who receive federally-funded child care, the parents 

must participate at least 55 hours (with 50 hours in core activities). 

A state is required to reduce the benefit of a family who receives 

TANF assistance if an individual in the family refuses to engage 

in work in accordance with the work participation standard. The 

sanction must be at least a pro-rata reduction in the benefit, or a 

greater reduction, including termination of the family’s entire benefit, as determined by the state. States may not sanction a family 

if there is good cause (determined by the state) or any other exception the state has developed. 

Explanation of provision 

While the WPR is eliminated, the Committee bill maintains rules 

for being considered engaged in work. These rules are applied to 

work-eligible individuals through the IOP. 

The Committee bill retains present law’s list of activities that 

count toward meeting the work participation requirement, with 

some modifications. It modifies the ‘‘vocational educational training’’ activity to eliminate its limitation to 12 months, and renames 

it ‘‘vocational and career and technical education.’’ It eliminates the 

durational limit for job search and readiness. It modifies ‘‘on-thejob training’’ to add ‘‘including apprenticeships’’ to the activity. The 

Committee bill adds an additional activity—‘‘any other activity that 

the State determines is necessary to improve the employment, 

earnings, or other outcomes of a recipient.’’ 

The Committee bill retains the total minimum hours per week of 

participation for a recipient to be engaged in work (e.g., 30 hours 

per week for single parents, 20 hours if the single parent has a 

child under the age of 6). However, it eliminates the requirement 

that a minimum number of those hours be in certain activities. The 

Committee bill retains the current law provision allowing work-eligible individuals who lack a high school diploma and are under the 

age of 20 to be deemed engaged in work if they make satisfactory 

progress toward a high school diploma or equivalent or participate 

in education directly related to employment for at least 20 hours 

per week. 

The Committee bill retains TANF’s requirement that a state 

sanction a family of an individual who refuses to work, subject to 

good cause and other exceptions determined by the state. 

Reason for change 

The Committee’s bill did not change the minimum hourly work 

requirement or the requirement that states sanction individuals 

who fail to comply. Work-eligible individuals receiving assistance 

are still expected to work in exchange for benefits. Consistent with 

the bill’s focus on universal engagement and case management, the 

Committee believes it is important to provide the necessary tools 

to caseworkers to assign the proper mix of work activities to 

achieve the measured outcome of work. Therefore, the bill allows 

states to define additional work activities, which must be described 

in their state plan and are subject to the approval of HHS. The bill 

also supplements two of the activities in current law to clarify that 

36 

26 ‘‘Center for Employment and Economic Well-Being: TANF at 20—Time for Rational 

Changes,’’ National Association of State TANF Administrators, American Public Human Services Association, November 2016. 27Government Accountability Office. ‘‘Welfare Reform: HHS Should Exercise Oversight to 

Help Ensure TANF Work Participation is Measured Consistently across States.’’ GAO–05–821: 

August 2005. https://www.gao.gov/assets/250/247482.pdf. 

apprenticeships and career technical education are allowable activities. 

Under current law, caseworkers are often incentivized to manage 

to a process to meet the work participation rate, which is a process 

measure and not an outcome measure. Understanding recipients’ 

dynamic challenges and helping them build a path forward is a 

human-resource-intensive activity. Pre-determined limits that require caseworkers to do mathematical gymnastics to match countable hours to assigned activities are counterproductive and ineffective. For example, a number of states have pointed to the rules 

that distinguish between core and non-core activities as being particularly problematic and have said such limitations lack the recognition that not all family circumstances fit precisely into artificial timeframes or one-size-fits-all approaches.26

The Committee is cognizant that providing states more flexibility 

in assigning work activities as described in this section does not 

come without risk, and is well aware of the findings that promoted 

work activity changes in the Deficit Reduction Act of 2005, P.L. 

109–171, such as a report to the Committee in August 2005 by the 

Government Accountability Office (GAO).27 The Committee is 

measuring work outcomes and therefore expects to see individuals 

engaged in activities that directly promote work—and not bed rest, 

smoking cessation, or other activities that do not have a work 

focus. It also hopes States will have learned their lessons from the 

last round and all will be watching. 

This bill places a high value on case management. A case manager sitting across from an individual in a welfare office is in the 

best position to determine what activities, and mix of activities 

over time, are most likely to promote success in the workforce—not 

Congress or the rest of the federal government. The Committee believes the federal role is to expect results, measure outcomes, and 

let states and local communities find the best way to get there. 

Further, the bill puts in place significant ‘‘checks’’ against the risk 

that comes along with additional state flexibility. 

Universal engagement and measuring outcomes are two inter-related policy provisions that reflect a ‘‘push-pull’’ accountability 

mechanism. The ‘‘push’’ is the fact the law requires states to universally engage and assign 100 percent of work-eligible individuals 

to a minimum number of hours per week in work activities. In 

doing so, the bill also gives states flexibility to assign activities that 

meet an individual’s needs and are most likely to get them job 

ready. This additional flexibility is primarily checked by the ‘‘pull’’ 

policy, which is the bill measures outcomes when a recipient leaves 

the program. States are incentivized, then, to put individuals into 

legitimate, meaningful activities that lead to the outcomes being 

measured getting a job and keeping a job. States that fail to 

achieve these outcomes are subject to penalty in the form of loss 

of federal funds. 

37 

In addition, the Committee bill includes several other policies focused on transparency that act as a check on states that might 

abuse this flexibility. These include: 

1. States will be required to list any additional work activities in their state plan, which HHS has approval authority 

over and will be posted on their state performance dashboard, 

and the hours individuals are assigned to these activities. 

2. States must comply with the Improper Payments Information Act, which will require them to conduct annual reviews 

of case files to determine compliance with federal work requirements. Identified errors will be posted on their state performance dashboard. 

3. States will be required to report the percent of their caseload that have reported zero hours of working and reasons why 

also to be displayed on their dashboard. 

These policies seek to hedge against past abuses and gaming 

that have failed within the current system. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 8: TARGETING FUNDS TO TRULY NEEDY FAMILIES

Present law 

A state may use federal TANF grants in ‘‘any manner that is 

reasonably calculated’’ to achieve TANF’s statutory purpose and 

goals: provide assistance to needy families with children, reduce dependence of needy parents on government benefits, reduce out-ofwedlock pregnancies, and promote the formation and maintenance 

of two-parent families. Activities in providing assistance and reducing dependency must be for ‘‘needy families,’’ though states determine the financial eligibility rules that constitute need. Activities 

to reduce out-of-wedlock pregnancies and promote the formation 

and maintenance of two-parent families are available for a state’s 

entire population, regardless of family structure and need. 

A state may not expend more than 15 percent of its grant award 

on administrative expenditures. Excluded from this limit are funds 

used for information technology needed for tracking or monitoring. 

TANF permits up to 30 percent of the state family assistance 

grant to be transferred to the Child Care and Development Block 

Grant (CCDBG) and the Social Services Block Grant (SSBG). This 

limit is reduced dollar for dollar by any TANF funds used as 

matching funds for reverse commuter grants. Within the total 

transfer amount, the law further limits transfers to SSBG to 4.25 

percent of the state family assistance grant. However, annual appropriation bills have, each year, increased this limit to 10 percent 

of the state family assistance grant. 

States are not required to transfer TANF funds to the CCDBG 

in order to provide child care services. States may spend TANF dollars on child care directly within state TANF programs or via 

transfers to the SSBG. States may also spend TANF dollars on 

child welfare services and activities, directly within state TANF 

programs or via transfers to the SSBG. 

States are required to expend from their own funds at least 75 

percent (80 percent if a state does not meet its work participation 

38 

28Welfare Rules Data book: State TANF Policies as of July 2015, Urban Institute. 29TANF and MOE Spending and Transfers by Activity, FY 2016, U.S. Department of Health 

and Human Services. 

standard) of historic state expenditures. Historic state expenditures 

are FY1994 spending in TANF’s predecessor programs. This is 

known as the ‘‘maintenance of effort’’ (MOE) requirement. States 

may count their own expenditures in any state program as long as 

it meets TANF’s general requirements regarding the types of benefits, services, and activities that may be counted. In addition to 

state and local government expenditures, under general rules of 

grants management, states may count the value of third-party donated services as state funds spent toward the MOE. 

Explanation of provision 

The Committee bill generally retains existing law, but adds certain requirements regarding the use of federal JOBS grants and 

state MOE funds. Principally, it prohibits federal and state MOE 

funds from being used for benefits or services to any families with 

incomes in excess of 200 percent of the Federal Poverty Line (FPL). 

The Committee bill retains the limit that no more than 15 percent of federal grants may be used for administrative expenses and 

retains the exclusion of information technology from that cap. It 

also excludes from this limit case management activities to conduct 

assessments, and to develop, monitor progress of recipients under, 

and revise Individual Opportunity Plans. 

The Committee bill prohibits direct spending within the JOBS 

program on child care and child welfare services or activities. 

States may use JOBS funds for these services and activities by 

transferring them to the Child Care and Development Block Grant 

(CCDBG) and to the Stephanie Tubbs Jones Child Welfare Services 

program (CWS, Title IV–B, Subpart 1), subject to transfer limitations. The state may use 50 percent of the JOBS grant for combined transfers to CCDBG, WIOA, and the CWS program. Transfers to CWS are limited to 10 percent of the JOBS grant. WIOA 

transfers are only permitted if a state is a partner in the one-stop 

system (i.e., has not opted out of being a partner). WIOA transfers 

must be spent on JOBS-eligible families and no more than 15 percent of the transfer may be withheld at the state level. The current 

authority to transfer funds to the Social Services Block Grant 

(SSBG) is eliminated. 

Reasons for change 

Proper targeting in social programs is a basic premise of effective 

public policy, particularly for the purpose of improving social welfare. The Committee believes a lack of targeting in the TANF program has led to abuses over time and funds should be focused on 

the truly needy. Therefore, the bill puts a guardrail around the use 

of funds to limit benefits and services to families with incomes 

under 200 percent of poverty. This income eligibility limit applies 

to all benefits and services, not just to those receiving basic assistance. All states have lower income eligibility thresholds for families 

to qualify for basic assistance that are significantly below 100 percent of poverty.28 However, only 24 percent of TANF funds were 

spent on basic assistance to families in FY 2016.29 For the remainder of the dollars, the only accountability mechanism is that funds 

39 

30 ‘‘Early Learning and Child Care: Agencies Have Helped Address Fragmentation and Overlap through Improved Coordination,’’ Government Accountability Office (GAO–17–463), Jul 13, 

2017. 

must meet one of the four TANF purposes. The four purposes include: 

(1) Providing assistance to needy families with children; 

(2) Reducing dependence of needy parents on government 

benefits; 

(3) Reducing out-of-wedlock pregnancies; and 

(4) Promoting the formation and maintenance of two-parent 

families. 

Current law purposes do not provide sufficient accountability for 

state use of funds. There has been an increasing awareness that 

‘‘meeting a TANF purpose’’ is a fairly subjective mechanism and 

has led to abuses as states have sought to use TANF funds for programs that are arguably only loosely related to one of these purposes. Examples include using TANF funds to provide scholarships 

to middle class families to attend private colleges and using TANF 

funds for public education programs like statewide pre-kindergarten. This bill affirmatively requires that all funds must be used 

for families under twice the poverty level, regardless of whether 

families are receiving assistance or receiving some other supportive 

service or benefit funded by the program. For the same reason, the 

bill also applies this guardrail to any state expenditures that are 

claimed to meet the MOE requirement. 

With regard to the bill’s changes on transferring funds from the 

block grant to other programs, the changes follow a basic principle: 

TANF block grant funds that are used for specific purposes in 

which there are already other federal programs designed to meet 

those purposes must be transferred to those respective programs. 

Congress recently reauthorized the Child Care and Development 

Block Grant (CCDBG), which is the nation’s primary program that 

provides access to child care for low-income working families. The 

program has strong accountability measures in place, including ensuring basic protections for the health and safety of children in 

child care and background checks for child care providers. Any 

TANF dollars a state spends on child care that are NOT transferred to CCDBG (approximately $1.3 billion in FY 2016) have no 

such protections and there is no data available on the number of 

children served by those funds. The bill would no longer allow for 

this ‘‘direct’’ funding of child care outside of the rules in CCDBG. 

That type of practice only acts to further exacerbate the already 

fragmented and duplicative early care and education system. GAO 

published a study last year that found not less than nine federal 

programs support early learning or child care and an additional 35 

permit funds to be used to pay for child care.30 This change in the 

bill is intended to increase accountability in use of funds for child 

care and improve alignment within the existing early care and education system. 

To accommodate this change, the bill raises the cap on the percent of TANF dollars that can be transferred to CCDBG from 30 

to 50 percent. Raising the cap, and adding an additional $600 million in entitlement funding for child care annually, is a reflection 

of the Committee’s recognition that child care is a critical work 

support for low-income families. 

40 

Secondly, this same principle on transferring funds applies to 

using TANF dollars for the provision of child welfare services. 

Again, the Committee believes such funds should be used within 

the framework of programs that Congress has already created for 

funding child welfare. The bill requires any TANF funds states 

wish to use for child welfare be transferred to the program authorized under subpart 1 of Title IV–B of the Social Security Act. The 

bill also places a 10 percent limit on such transfers. This limit is 

a reflection of the fact that Congress recently enacted the Family 

First Prevention Services Act (P.L. 115–123) to provide foster care 

prevention funding for substance abuse, mental health, and parenting services to families with children at-risk of coming into foster care. The cap acknowledges that there are existing resources already dedicated to child welfare and JOBS program dollars should 

be focused on supporting work. 

Finally, the bill adds authority for states to transfer funds to 

WIOA employment and training programs to promote alignment 

with the workforce system. As discussed earlier in this report, 

WIOA is an important partner in helping individuals get and keep 

a job. The Committee’s goal is to leverage the strengths of this existing system, particularly the local Workforce Development Boards 

and their link to employers and in-demand jobs, to improve employment outcomes for families receiving assistance. This policy allows states the option to transfer funds to WIOA, up to the 50 percent cap, to serve JOBS-eligible families. States may reserve 15 

percent of any transferred funds for statewide workforce activities 

and the remainder is to be provided to Workforce Development 

Boards to provide access to training and to facilitate job matching 

and connections to the local labor market. The Committee’s expectation is that JOBS funds transferred to WIOA will be used for 

services through co-enrollment in other workforce programs. States 

have flexibility to place restrictions on what percent of funds provided to local Workforce Development Boards can be used for administrative activities. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 9: TARGETING FUNDS TO CORE PURPOSES

Present law 

A state may use federal TANF grants in ‘‘any manner that is 

reasonably calculated’’ to achieve TANF’s statutory purpose and 

goals. Under certain circumstances, a state may use TANF funds 

for activities that were authorized under pre-TANF law even if it 

is an activity that cannot be reasonably calculated to achieve 

TANF’s statutory purpose. 

Explanation of provision 

The Committee bill continues to permit spending for these same 

purposes. However, it requires that at least 25 percent of the 

state’s federal JOBS grant and 25 percent of the state’s MOE 

spending be used for ‘‘core activities’’ which, under the bill, are assistance, case management, work supports and supportive services, 

wage subsidies, work activities and non-recurring short-term beneVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00040 Fmt 6659 Sfmt 6602 E:\HR\OC\HR754.XXX HR754
41 

31TANF and MOE Spending and Transfers by Activity, FY 2016, U.S. Department of Health 

and Human Services. 32Government Accountability Office. ‘‘Temporary Assistance for Needy Families: Update on 

States Counting Third-Party Expenditures toward Maintenance of Effort Requirements.’’ GAO– 

16–315: Published: Feb 10, 2016. Publicly Released: Mar 10, 2016. https://www.gao.gov/products/GAO-16-315. 

fits. Work supports are defined as transportation benefits, tools, 

uniforms, fees to obtain licenses, and work support allowances. 

The Committee bill also phases out the ability of states to count 

the value of spending from sources other than state or local governments toward the JOBS MOE. In FY2020, expenditures from 

sources other than state or local governments can account for no 

more than 75 percent of MOE spending, with this limit phasing 

down to 50 percent in FY2021, 25 percent in FY2022, and 0 percent in FY2023 and thereafter. 

Reason for change 

States are spending a combined $30 billion per year through 

TANF and less than half those dollars are being spent on core activities such as cash assistance, work, education, training, or supportive services.31 Instead, as caseloads have dropped, many states 

have diverted TANF funds to fill budget holes or fund specialty 

programs that have little to do with supporting work. The Committee strongly believes the taxpayer investment in this program 

is meant to support work. The provision requires at least 25 percent of funds be spent towards this core objective—putting in place 

another guardrail to re-focus federal and state dollars on helping 

welfare recipients move into jobs. 

Current law requires states must spend a certain amount of 

state money (based on past state spending on low-income programs) to receive full federal TANF block grant funds, which is 

called the state ‘‘maintenance of effort’’ or MOE requirement. However, recent reports from the nonpartisan GAO indicate a rising 

number of states appear to be counting non-state third-party 

spending as TANF MOE spending.32

For example, a number of states now count the supposed value 

of volunteer hours as TANF MOE by multiplying volunteer hours 

by an estimated wage rate and then reporting this as ‘‘spending’’ 

in the TANF program. This evolution has also resulted in some 

states reporting significant ‘‘excess MOE’’ spending, which under a 

1999 regulation allows states to reduce the share of TANF recipients expected to work in exchange for TANF benefits. This practice 

also allows states to reduce their state investment in TANF, gaming the intent of the law’s requirements that states continue to invest in the program as a condition of receiving federal funds. 

The Committee believes the true intent of the MOE requirement 

is to ensure there continues to be a contribution from state and 

local government dollars as part of the state’s responsibility to provide services and support to low-income families. Therefore, this 

provision gradually phases out counting of any non-state or local 

government expenditures towards the MOE requirement over a 

five-year period. 

Effective date 

The provision is effective on October 1, 2018. 

42 

SECTION 10: STRENGTHENING PROGRAM INTEGRITY BY MEASURING

IMPROPER PAYMENTS

Present law 

The Improper Payments Elimination and Recovery Act of 2010 

(P.L. 111–204) requires federal agencies to take steps to identify 

and reduce improper payments. Improper payments are those that 

should not have been made or were made in an incorrect amount. 

The Department of Health and Human Services has indicated it 

lacks the authority to require states to participate in TANF improper payment measurement. 

Explanation of provision 

The Committee bill requires states to apply the Improper Payments Elimination and Recovery Act of 2010 to their JOBS programs. It requires HHS to issue regulations within 2 years to implement this provision. 

Reason for change 

Ending a longstanding inequity, HHS will be required to report 

to the Office of Management and Budget an estimate of improper 

payments for the JOBS program as part of the larger governmentwide effort to improve program integrity and reduce waste, fraud, 

and abuse. HHS has indicated it lacks the authority to compute improper payment rates for TANF in accordance with the Improper 

Payments Elimination and Recovery Act. The agency has argued 

that, since states design their own programs and make their own 

rules, there is no way to operationalize a national error rate. Yet 

there are a number of state-administered federal programs, such as 

unemployment insurance and the Child Care and Development 

Fund (CCDF) program, which have developed methodologies for 

complying with this Act and reporting improper payments. 

The intent of the Committee is that HHS will regulate through 

notice and comment rulemaking, and in consultation with the Office of Child Care in the Administration for Children and Families, 

to develop a process by which states are to conduct such reviews 

including instructions for sample selections relative to the size of 

the state, record and case file reviews, development of standardized 

forms, and other key pieces of information states must consider 

when conducting reviews. HHS should also establish regulatory 

guidelines and provide technical assistance to states to ensure improper payments reviews are conducted in a similar manner across 

states. HHS may choose to implement these reviews on a rolling 

basis. For example, in the CCDF program the Office of Child Care 

has divided states into three representative groups so each state 

conducts the case file review once every three years. The case review process should include reviewing a sample of case files to assess whether eligibility was appropriately determined according to 

state rules, benefits were issued properly, and work-eligible individuals were appropriately assigned work activities in accordance 

with state and federal law, including whether such activities were 

appropriately verified and tracked. 

Effective date 

The provision is effective on October 1, 2018. 

43 

SECTION 11: PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS

TO REPLACE STATE SPENDING

Present law 

No provision. 

Explanation of provision 

The Committee bill requires that federal JOBS grants must be 

used to supplement, not supplant, state general revenue spending 

on the activities supported by state JOBS programs. 

Reason for change 

This provision requires that federal JOBS funding must be used 

to supplement, not supplant, state general revenue funds. As stated above, over time and as caseloads have declined, many states 

have diverted TANF funds to fill state budget holes. During a 2016 

mark-up of several TANF bills, one Member referred to state governments as being on ‘‘the welfare dole.’’ There is bipartisan recognition that states have taken advantage of the loose rules governing TANF spending. The Committee believes that adding this 

language restores accountability by affirmatively stating that 

states may not use federal funds to replace state and local spending on activities and services for low-income families. This provision is consistent with the bill’s efforts to put in place guardrails 

to make sure the dollars already being spent are achieving their intended purpose supporting the success of American families in 

work. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 12: INCLUSION OF POVERTY REDUCTION AS A CORE

PURPOSE

Present law 

The purpose of TANF is to increase the flexibility of states in operating a program designed to achieve four statutory goals. TANF’s 

statutory purpose is both an aspirational statement about the goals 

of the block grant and a basis for how states may expend TANF 

funds. The four statutory goals of TANF are to: (1) provide assistance to needy families with children so that children can be cared 

for in their homes or in the homes of relatives; (2) end the dependence of needy parents on government benefits through work, job 

preparation, and marriage; (3) prevent and reduce the incidence of 

out-of-wedlock pregnancies and have states establish annual numerical goals for reducing such pregnancies; and (4) encourage the 

formation and maintenance of two-parent families. 

Explanation of provision 

The Committee bill adds to the present law purpose a goal to reduce child poverty by increasing employment entry, retention, and 

advancement of needy parents. 

44 

Reason for change 

While the overall goal of TANF is to help low-income individuals 

and families achieve self-sufficiency and improve their lives, the 

program does not currently have an explicit focus on reducing poverty. The Committee bill adds a new purpose to TANF to explicitly 

recognize the best way out of poverty is a job. This additional purpose is to reduce child poverty by increasing employment entry, retention, and advancement of low-income parents. This change will 

assist in the overall purpose of the legislation to ensure states keep 

the focus of the program on promoting work to help families move 

up the economic ladder. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 13: WELFARE FOR NEEDS NOT WEED

Present law 

States are required to maintain policies and practices to prevent 

TANF assistance from being accessed in Electronic Benefit Transfer (EBT) transactions in liquor stores, casinos, or adult entertainment establishments. 

Explanation of provision 

The Committee bill retains the current requirements and adds 

establishments selling marijuana to the list of establishments in 

which JOBS assistance cannot be accessed in an EBT transaction. 

The provision is effective two years after the date of enactment. 

Reason for change 

As of 2012, current law prohibits access to taxpayer-funded welfare benefits for either purchases or withdrawals at ATMs in strip 

clubs, liquor stores, and casinos. That common-sense change was 

enacted with bipartisan support in 2012, and states nationwide 

have begun implementing it in the past few years. But with the advent of legalized pot sales in several states, a ‘‘pot shop loophole’’ 

has emerged that currently allows welfare recipients to access taxpayer-provided welfare funds electronically in stores that sell marijuana. 

This provision does not comment on whether it makes sense for 

states to legalize the sale of pot, as Colorado and Washington have 

done. It simply says that, wherever pot is legally sold, welfare recipients shouldn’t be able to readily access welfare funds to pay for 

it. This taxpayer money is meant to support the basic needs of lowincome families with children, including reconnecting parents with 

work—not to purchase marijuana. 

Effective date 

The provision is effective two years after the date of enactment. 

45 

SECTION 14: STRENGTHENING ACCOUNTABILITY THROUGH HHS 

APPROVAL OF STATE PLANS

A. STATE PLAN PROCESS

Present law 

States are required to submit a TANF state plan every three 

years as a condition of receiving block grant funds. Local governments and private sector organizations are required to be consulted 

regarding the plan so services are appropriate for local populations 

and those entities are to have at least 45 days to submit comments. 

States must submit plan amendments within 30 days after a state 

amends the plan. A summary of the state plan must be publically 

available. States receive block grant funds only if the Secretary of 

HHS certifies the state plan is complete. Under the Workforce Innovation and Opportunity Act (WIOA), states may submit their 

TANF plan as part of a WIOA combined plan. 

Explanation of provision 

The Committee bill requires that the Secretary of HHS approve 

a state’s JOBS plan for the state to be eligible for a grant. It also 

provides that a JOBS state plan is implemented over a two-year 

period. It adds explicit language to the JOBS statute that JOBS 

plans may be submitted as part of WIOA combined plans. 

Reason for change 

The Committee bill establishes the state plan as an important 

accountability mechanism and improves federal administration of 

the program by providing HHS authority to approve state plans. 

The plan also is to be used as the mechanism by which states establish targets for the outcome measures outlined in the bill and 

provide justification for state policies. In keeping with the desire to 

create better alignment with WIOA, the Committee bill allows 

states to submit their JOBS plan as part of the WIOA combined 

plan process. 

Effective date 

The provision is effective on October 1, 2018. 

B. STATE PLAN CONTENT

Present law 

The state must submit a written document that outlines how a 

state intends to: operate a program statewide, though not necessarily in a uniform manner within the state; require parents and 

caretakers to engage in work (as defined by the state) within 24 

months of receipt of assistance, consistent with the requirement 

that child care be available; require parents and caretakers to engage in TANF work activities (as listed in law); take reasonable 

steps to restrict disclosure of information of individuals and families receiving assistance; establish goals and take action to reduce 

out-of-wedlock pregnancies; conduct an education program for law 

enforcement individuals on statutory rape; implement policies to 

prevent electronic benefit transactions at certain establishments; 

and ensure recipients of assistance have access to their benefits 

with no or minimal fees and charges. 

46 

The state plan is also to contain a description of whether the 

state intends to provide assistance to noncitizens; whether it treats 

new migrants to the state differently than other families; the objective criteria for the delivery of benefits and services and determination of eligibility; and whether the state intends to assist individuals to train for or seek employment in long-term care facilities or 

providing elder care. Unless the state opts out, the state must require recipients of assistance to engage in community services after 

receiving assistance for two-months. (The option for a state not to 

require community service had to be taken within 1 year of the enactment of the 1996 welfare reform law.) 

The governor of the state must certify the state will operate a 

child support enforcement program; will operate a Title IV–E program for foster care, prevention, and permanency; will provide equitable access to Indians in state TANF programs if they are not 

eligible for tribal TANF; and has established and is enforcing 

standards and procedures against fraud and abuse and procedures 

concerning nepotism and conflicts of interest. States must also certify that they consulted local governments and private sector organizations. 

The governor of the state may certify that the state has established and is enforcing standards to screen for victims of domestic 

violence, refer victims of domestic violence to counseling and supportive services, and waive program requirements, such as time 

limits. Domestic violence is defined as physical acts that resulted 

in, or threatened to result in, physical injury; sexual abuse; sexual 

activity involving a dependent child; being forced to engage in nonconsensual sexual activities; threats of, or attempts at, physical or 

sexual abuse; mental abuse; neglect; or deprivation of medical care. 

Explanation of provision 

This section modifies state plan requirements to reflect new policies and changes made by the Committee’s bill. It replaces the 

present law provisions related to work with three plan elements. 

The state plan must: 

• describe the activities in which the state will require workeligible individuals to participate in accordance with the JOBS 

work standard (activities and hours); 

• describe its case management practices, including the form 

used to assess work-eligible individuals and prepare Individual 

Opportunity Plans (IOPs) and how it will review individual 

progress under the plan; and 

• include the proposed performance outcome targets (job 

entry, job retention, wages, and completion of high school or 

equivalent) in the JOBS state plan. 

The Committee bill also requires a JOBS state plan to indicate 

whether the state intends to transfer any funds paid to a program 

operated under WIOA, and shall include assurances that all funds 

transferred will be used to support families eligible for assistance 

and that not more than 15 percent of the funds will be reserved 

for statewide workforce investment activities. The state plan must 

indicate how JOBS will coordinate with the one-stop delivery system and how the state will coordinate to provide services to recipients of JOBS assistance. 

47 

33Office of Child Support Enforcement, Administration for Children and Families, U.S. Department of Health and Human Services. ‘‘Preliminary Report FY2017.’’ Accessed June 6, 2018: 

https://www.acf.hhs.gov/sites/default/files/programs/css/fy_2017_preliminary_data_report.pdf. 

The Committee bill requires the JOBS state plan to describe how 

the state will engage low-income noncustodial parents and provide 

them with work supports. It also requires the JOBS state plan to 

describe how the state allows for transitional benefits for those receiving assistance who become employed. This could include how 

the state counts and disregards earnings for the purposes of eligibility and benefits in their assistance programs. Additionally, the 

Committee bill adds to the JOBS state plan a description of how 

the state will promote marriage, such as through a temporary disregard of the income of a new spouse; how the state will engage 

low-income noncustodial parents paying child support and how 

such parents will be provided with access to work supports; and 

how the state will comply with the application of the Improper Payments Elimination and Recovery Act to JOBS. 

Reason for change 

The Committee bill formalizes development and submission of 

the state JOBS plan and updates this section to fold in new 

changes made by other sections of this bill. The expectation is HHS 

will develop a state plan template to standardize data collection 

across each of these elements and provide guidance to states in 

submission of the plan. HHS should design the state plan with an 

eye toward usability and for purposes of enabling the aggregation 

of data across states to use in reporting on the implementation of 

certain policies, for example in the department’s annual Report to 

Congress. 

To improve transparency, a link to the state plan is to be included on each state’s performance dashboard report, and the plan 

is to be used as the primary mechanism by which HHS will jointly 

negotiate performance targets for the outcome measures included 

in this bill. Further, as described above, states are to list any additional work activities in their plan, subject to HHS approval, for 

purposes of the minimum hourly work requirement and development of the individual opportunity plan. 

The plan also improves transparency by asking states to describe 

specific policies and procedures in key areas where the Committee 

believes there is a need for targeted policy consideration. This includes asking states to describe how they will engage non-custodial 

parents identified by the custodial parent through the mandatory 

cooperation requirement that exists in current law. States must describe how such parents will be provided access to work support 

and other services to support their employment and advancement. 

TANF has traditionally included a heavy focus on single mothers, 

but TANF purposes speak to the responsibility of both parents— 

the mother and the father. There are 5 million child support cases 

that are not being collected likely because the non-custodial parent 

is not formally working.33 Non-custodial parents, often fathers, outside the home can receive the same work supports through TANF 

that parents within the home do, but there is significantly more 

that can be done. This plan provision will compel states to think 

through these connections and how they can better support both 

48 

parents in their transition to the workforce and strengthen families 

using JOBS funding. 

As a way to help more families transition off of assistance, the 

plan also asks states to describe policies they have in place to 

phase-out benefits over time, such as through earned income disregards, as a family’s income from wages increases. Getting incentives right is an important part of helping families achieve independence from assistance. Anecdotally, some families report turning down a small wage increase for fear of losing benefits that 

phase out as income rises. Policies that provide for a transitional 

period can help change this incentive structure and ensure that 

families that choose work, and a pay raise, are better off for making that choice. 

Similarly, the plan asks states to describe policies in place for 

when a recipient marries, such as through a temporary disregard 

of the income of a new spouse, so the couple doesn’t automatically 

lose benefits due to marriage. Again, the Committee’s intent is to 

promote thoughtful state policies that include positive incentives 

aimed at supporting work and strengthening families. 

Effective date 

The provision is effective on October 1, 2018. 

C. TECHNICAL ASSISTANCE

Present law 

There is a set aside of 0.33 percent of the TANF appropriation 

for research and technical assistance. 

Explanation of provision 

The Committee bill sets aside an additional 0.25 percent of the 

JOBS appropriation to HHS to fund technical assistance to the 

states and tribes. Technical assistance shall be provided by qualified experts and grounded in scientifically valid research. Technical 

assistance may also be provided to the states and tribes on a reimbursable basis. These funds also shall be used to publish the work 

outcome measures of state performance. 

Reason for change 

The Committee bill sets aside one quarter of 1 percent of the 

JOBS appropriation to HHS to fund technical assistance to the 

states and tribes, specifically to support development and maintenance of the state performance dashboard described in Section 7. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 15: ALIGNING AND IMPROVING DATA REPORTING

Present law 

A state is required to collect data monthly and report data quarterly to HHS on families and individuals receiving assistance from 

TANF or separate state programs. Information is also required on 

those exiting TANF or separate state programs. A state has the option to comply with the TANF data collection requirements using 

a sample of families receiving assistance, rather than all such famiVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\HR754.XXX HR754
49 

lies. HHS is required to provide states with case sampling plans 

and data collection procedures. 

The statute specifies a number of data elements required to be 

reported to HHS. The statutory data elements for each family are: 

county of residence; number of family members; whether the family 

received subsidized housing, Medicaid, Supplemental Nutrition Assistance Program (SNAP) benefits, or subsidized child care; the 

amount of assistance the family received; and number of months 

the family received each type of assistance under the program. The 

statute requires reporting of benefit amounts of SNAP and child 

care received by the family. The statutory data elements for each 

person in the family are: receipt of disability benefits; ages; relationship to the family head; race; educational level; unearned income received; and citizenship. The statutory data elements for 

each adult in the family are: employment status and earnings; 

marital status; and whether the adult participated in certain activities. In addition, the statute says that states must report information necessary to compute the TANF work participation rate 

(WPR). 

The statute gives HHS the authority to regulate the definition of 

the data elements. HHS has added some additional data elements 

regarding the WPR as well as months accrued toward the 60- 

month time limit for adults in the family. 

Explanation of provision 

The Committee bill eliminates the state option to comply with 

TANF data collection requirements using a sample of families, requiring the state to submit information on each family in its caseload. It requires each state to report information on participation 

in work and job preparation activities; activities to remove a barrier to employment; and, if the work-eligible individual is not engaged in an activity, the reason for lack of engagement. HHS is 

given the authority to collect the data needed to compute employment outcomes, and to make the statistical adjustment for the new 

JOBS performance measures. 

Reason for change 

The Committee bill places a premium on transparency and 

changes in the bill to data reporting reflect this priority. Many 

states, particularly large states, currently submit sample data this 

has the effect of limiting the accuracy of the data in the sense of 

not providing a full and complete picture of the number, characteristics, and demographics of individuals served. In addition, as part 

of the implementation of the new performance accountability system, this section of the bill provides HHS authority to collect necessary data elements to measure outcomes specified in section 7. 

Finally, this section provides an affirmative requirement that 

states report on the share of individuals with zero hours of participation—a data element to be included on each state’s dashboard, 

further promoting transparency and accountability. 

Effective date 

The provision is effective on October 1, 2018. 

50 

SECTION 16: TECHNICAL CORRECTIONS TO DATA EXCHANGE

STANDARDS TO IMPROVE PROGRAM COORDINATION

Present law 

The Department of Health and Human Services, in consultation 

with the Office of Management and Budget, is required to designate in regulation data exchange standards for any information 

required to be reported under TANF. The data exchange standard 

must, to the extent practicable, incorporate a widely-accepted, nonproprietary, and searchable format; be consistent with applicable 

accounting practices; be capable of being upgraded; and incorporate 

existing nonproprietary standards (such as XML). 

Explanation of provision 

The Committee bill makes technical corrections to present law 

regarding data exchange standards, to conform the JOBS language 

to that used for other programs. 

Reason for change 

The Committee was alerted by the Department of Health and 

Human Services that the original version of this language, enacted 

in 2012, was not consistent with the goal of improving federal-tostate and state-to-state data exchanges that are important to this 

state-administered program. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 17: SET-ASIDE FOR ECONOMIC DOWNTURNS

Present law 

States and tribes may reserve unused federal TANF grants for 

use in a later year without fiscal year limit. Reserved funds may 

be used for any TANF benefit or service. 

Explanation of provision 

The Committee bill expects federal JOBS funds to be obligated 

by the state within 2 years of the grant award and expended within 3 years of the award. An exception to this rule is that it allows 

a state to reserve up to 15 percent of its JOBS grants for future 

use in the JOBS program. 

Reason for change 

The Committee believes that adding a guardrail around the 

availability of funds will improve fiscal responsibility and support 

the bill’s overall focus on accountability in the spending of program 

funds. Further, allowing up to 15 percent of funds to be reserved 

for periods when there may be an increase in the demand for resources, such as during economic downturns, is designed to help 

states accommodate such increased demands should these situations arise. 

Effective date 

The provision is effective on October 1, 2018. 

51 

SECTION 18: DEFINITIONS RELATED TO USE OF FUNDS

Present law 

TANF has statutory definitions for: adult; minor child; fiscal 

year; Indian, Indian tribe, and tribal organization; and State. Some 

TANF terms are not defined. For example, the TANF statute applies most requirements to families receiving assistance but it does 

not define that term. In addition to the statutory definitions, HHS 

defined certain terms in regulations and for use in data reporting. 

HHS defined the term ‘‘assistance’’ in regulation as ongoing economic support to meet basic needs. HHS has defined ‘‘work supports’’ for the purposes of state reports of financial data as transportation benefits, tools, uniforms, fees to obtain licenses, and work 

support allowances. HHS regulations and guidance allow states to 

define other terms, such as ‘‘family.’’ 

Explanation of provision 

The Committee bill adds several statutory definitions to the 

JOBS program. It defines assistance and work supports similarly 

to the current usage of those terms in TANF. It adds a definition 

of ‘‘JOBS benefit’’ to mean both assistance and subsidized employment, including apprenticeships. 

Reason for change 

Several of these definitions are consistent with the current regulatory definitions used by HHS. The new definition of a JOBS benefit clarifies that an individual receiving assistance who transitions 

to subsidized employment, such as on-the-job training or apprenticeship, and as a result no longer receives assistance, may still be 

considered as receiving a benefit for purposes of making a determination of when an individual ‘‘exits’’ the program and becomes 

part of the denominator of the state’s outcome measures. In this 

case, a state is incentivized to support an individual’s continuation 

and success in subsidized employment and apprenticeship programs as they transition to independence and unsubsidized employment. The Committee’s intent is that this definition also clarifies ‘‘receipt of a title IV–A benefit’’ for purposes of categorical eligibility determinations in the Supplemental Nutrition and Assistance 

Program (SNAP). 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 19: ELIMINATION OF OBSOLETE PROVISIONS

Present law 

TANF law includes three grants that have expired and for which 

there is no current funding. These are (1) supplemental grants (last 

funded in FY2011); (2) high performance bonuses (last funded in 

FY2005); and (3) welfare-to-work grants (last funded in FY1999). 

Explanation of provision 

The Committee bill strikes the three expired grants and associated provisions from the statute. It also eliminates the TANF loan 

fund, which has not been accessed since FY2005. The fact that this 

52 

fund was not accessed during or following the serious recession of 

2007–09 speaks to the obsolescence of this loan fund designed to 

assist states with pressing needs during difficult economic times. 

The Committee bill also requires that all maintenance of effort 

(MOE) funds be spent under the rules of the TANF program, eliminating the ability of states to count expenditures in ‘‘separate state 

programs’’ toward meeting that MOE requirement. 

Reason for change 

The Committee bill cleans up this section of the Social Security 

Act to eliminate obsolete provisions from the 1996 law. This section 

also includes elimination of the TANF contingency fund. As described above, those dollars are re-purposed under the Committee 

bill as additional Child Care Entitlement funds. 

Effective date 

The provision is effective on October 1, 2018. 

SECTION 20: EFFECTIVE DATE

Present law 

The current authorization of the TANF program expires September 30, 2018. 

Explanation of provision 

The amendments made by this Act are effective October 1, 2018. 

The prohibition on drawing assistance in establishments that sell 

marijuana is effective two years after the date of enactment of the 

JOBS for Success Act. 

Reason for change 

The Committee believes it is appropriate to have an effective 

date of October 1, 2018, the start of the next fiscal year, following 

the expiration of the current authorization on September 30, 2018. 

This is intended to provide necessary funds to states to prevent any 

disruption in benefits or services. 

III. VOTES OF THE COMMITTEE 

In compliance with the Rules of the House of Representatives, 

the following statement is made concerning the vote of the Committee on Ways and Means during the markup consideration of 

H.R. 5861, the ‘‘Jobs and Opportunity with Benefits and Services 

(JOBS) for Success Act’’ on May 23–24, 2018. 

An amendment in the nature of a substitute was offered by 

Chairman Brady and adopted by voice vote (with a quorum being 

present). 

The vote on Mr. Reichert’s motion to table Mr. Neal’s appeal of 

the ruling of the Chair was agreed to by a roll call vote of 21 yeas 

to 14 nays (with a quorum being present). The vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. X ........... ............. Mr. Neal ............................... ........... X .............

Mr. Johnson ........................... X ........... ............. Mr. Levin .............................. ........... X .............

Mr. Nunes ............................. X ........... ............. Mr. Lewis .............................. ........... ........... .............

Mr. Reichert .......................... X ........... ............. Mr. Doggett .......................... ........... X .............

Mr. Roskam ........................... X ........... ............. Mr. Thompson ...................... ........... X .............

53 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Buchanan ....................... X ........... ............. Mr. Larson ............................ ........... X .............

Mr. Smith (NE) ...................... X ........... ............. Mr. Blumenauer ................... ........... X .............

Ms. Jenkins ........................... X ........... ............. Mr. Kind ............................... ........... X .............

Mr. Paulsen ........................... X ........... ............. Mr. Pascrell .......................... ........... ........... .............

Mr. Marchant ........................ X ........... ............. Mr. Crowley .......................... ........... X .............

Ms. Black .............................. ........... ........... ............. Mr. Davis .............................. ........... X .............

Mr. Reed ............................... X ........... ............. Ms. Sanchez ......................... ........... X .............

Mr. Kelly ................................ X ........... ............. Mr. Higgins .......................... ........... X .............

Mr. Renacci ........................... X ........... ............. Ms. Sewell ............................ ........... X .............

Ms. Noem .............................. ........... ........... ............. Ms. DelBene ......................... ........... X .............

Mr. Holding ........................... X ........... ............. Ms. Chu ................................ ........... X .............

Mr. Smith (MO) ..................... X ........... .............

Mr. Rice ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Ms. Walorski ......................... X ........... .............

Mr. Curbelo ........................... X ........... .............

Mr. Bishop ............................ ........... ........... .............

Mr. LaHood ............................ X ........... .............

Mr. Wenstrup ........................ X ........... .............

The vote on the amendment offered by Mr. Doggett to the 

amendment in the nature of a substitute to H.R. 5861, which would 

increase the reservation of Federal Funds for certain purposes, was 

not agreed to by a roll call vote of 23 nays to 11 yeas (with a 

quorum being present). The vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Nunes ............................. ........... X ............. Mr. Lewis .............................. ........... ........... .............

Mr. Reichert .......................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Roskam ........................... ........... X ............. Mr. Thompson ...................... X ........... .............

Mr. Buchanan ....................... ........... X ............. Mr. Larson ............................ ........... X .............

Mr. Smith (NE) ...................... ........... X ............. Mr. Blumenauer ................... X ........... .............

Ms. Jenkins ........................... ........... X ............. Mr. Kind ............................... X ........... .............

Mr. Paulsen ........................... ........... X ............. Mr. Pascrell .......................... ........... ........... .............

Mr. Marchant ........................ ........... X ............. Mr. Crowley .......................... ........... ........... .............

Ms. Black .............................. ........... ........... ............. Mr. Davis .............................. X ........... .............

Mr. Reed ............................... ........... X ............. Ms. Sanchez ......................... X ........... .............

Mr. Kelly ................................ ........... X ............. Mr. Higgins .......................... X ........... .............

Mr. Renacci ........................... ........... X ............. Ms. Sewell ............................ X ........... .............

Ms. Noem .............................. ........... ........... ............. Ms. DelBene ......................... X ........... .............

Mr. Holding ........................... ........... X ............. Ms. Chu ................................ ........... ........... .............

Mr. Smith (MO) ..................... ........... X .............

Mr. Rice ................................ ........... X .............

Mr. Schweikert ...................... ........... X .............

Ms. Walorski ......................... ........... X .............

Mr. Curbelo ........................... ........... X .............

Mr. Bishop ............................ ........... X .............

Mr. LaHood ............................ ........... X .............

Mr. Wenstrup ........................ ........... X .............

The vote on Mr. Reichert’s motion to table Ms. Sanchez’s appeal 

of the ruling of the Chair was agreed to by a roll call vote of 21 

yeas to 13 nays (with a quorum being present). The vote was as 

follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. X ........... ............. Mr. Neal ............................... ........... X .............

Mr. Johnson ........................... X ........... ............. Mr. Levin .............................. ........... X .............

Mr. Nunes ............................. X ........... ............. Mr. Lewis .............................. ........... ........... .............

Mr. Reichert .......................... X ........... ............. Mr. Doggett .......................... ........... X .............

Mr. Roskam ........................... X ........... ............. Mr. Thompson ...................... ........... X .............

54 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Buchanan ....................... X ........... ............. Mr. Larson ............................ ........... X .............

Mr. Smith (NE) ...................... X ........... ............. Mr. Blumenauer ................... ........... X .............

Ms. Jenkins ........................... X ........... ............. Mr. Kind ............................... ........... X .............

Mr. Paulsen ........................... X ........... ............. Mr. Pascrell .......................... ........... ........... .............

Mr. Marchant ........................ X ........... ............. Mr. Crowley .......................... ........... ........... .............

Ms. Black .............................. ........... ........... ............. Mr. Davis .............................. ........... X .............

Mr. Reed ............................... X ........... ............. Ms. Sanchez ......................... ........... X .............

Mr. Kelly ................................ X ........... ............. Mr. Higgins .......................... ........... X .............

Mr. Renacci ........................... X ........... ............. Ms. Sewell ............................ ........... X .............

Ms. Noem .............................. ........... ........... ............. Ms. DelBene ......................... ........... X .............

Mr. Holding ........................... X ........... ............. Ms. Chu ................................ ........... X .............

Mr. Smith (MO) ..................... ........... ........... .............

Mr. Rice ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Ms. Walorski ......................... X ........... .............

Mr. Curbelo ........................... X ........... .............

Mr. Bishop ............................ X ........... .............

Mr. LaHood ............................ X ........... .............

Mr. Wenstrup ........................ X ........... .............

The vote on the amendment offered by Mr. Davis to the amendment in the nature of a substitute to H.R. 5861, which would develop a Federal Interagency Working Group, was not agreed to by 

a roll call vote of 21 nays to 14 yeas (with a quorum being present). 

The vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Nunes ............................. ........... X ............. Mr. Lewis .............................. ........... ........... .............

Mr. Reichert .......................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Roskam ........................... ........... X ............. Mr. Thompson ...................... X ........... .............

Mr. Buchanan ....................... ........... X ............. Mr. Larson ............................ X ........... .............

Mr. Smith (NE) ...................... ........... X ............. Mr. Blumenauer ................... X ........... .............

Ms. Jenkins ........................... ........... X ............. Mr. Kind ............................... X ........... .............

Mr. Paulsen ........................... ........... X ............. Mr. Pascrell .......................... X ........... .............

Mr. Marchant ........................ ........... X ............. Mr. Crowley .......................... ........... ........... .............

Ms. Black .............................. ........... ........... ............. Mr. Davis .............................. X ........... .............

Mr. Reed ............................... ........... X ............. Ms. Sanchez ......................... X ........... .............

Mr. Kelly ................................ ........... X ............. Mr. Higgins .......................... X ........... .............

Mr. Renacci ........................... ........... X ............. Ms. Sewell ............................ X ........... .............

Ms. Noem .............................. ........... ........... ............. Ms. DelBene ......................... X ........... .............

Mr. Holding ........................... ........... X ............. Ms. Chu ................................ X ........... .............

Mr. Smith (MO) ..................... ........... ........... .............

Mr. Rice ................................ ........... X .............

Mr. Schweikert ...................... ........... X .............

Ms. Walorski ......................... ........... X .............

Mr. Curbelo ........................... ........... X .............

Mr. Bishop ............................ ........... X .............

Mr. LaHood ............................ ........... X .............

Mr. Wenstrup ........................ ........... X .............

The vote on the amendment offered by Ms. Sewell to the amendment in the nature of a substitute to H.R. 5861, which would add 

certain state performance indicators, was not agreed to by a roll 

call vote of 22 nays to 15 yeas (with a quorum being present). The 

vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Nunes ............................. ........... X ............. Mr. Lewis .............................. ........... ........... .............

Mr. Reichert .......................... ........... X ............. Mr. Doggett .......................... X ........... .............

55 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Roskam ........................... ........... X ............. Mr. Thompson ...................... X ........... .............

Mr. Buchanan ....................... ........... X ............. Mr. Larson ............................ X ........... .............

Mr. Smith (NE) ...................... ........... X ............. Mr. Blumenauer ................... X ........... .............

Ms. Jenkins ........................... ........... X ............. Mr. Kind ............................... X ........... .............

Mr. Paulsen ........................... ........... X ............. Mr. Pascrell .......................... X ........... .............

Mr. Marchant ........................ ........... X ............. Mr. Crowley .......................... X ........... .............

Ms. Black .............................. ........... ........... ............. Mr. Davis .............................. X ........... .............

Mr. Reed ............................... ........... X ............. Ms. Sanchez ......................... X ........... .............

Mr. Kelly ................................ ........... X ............. Mr. Higgins .......................... X ........... .............

Mr. Renacci ........................... ........... X ............. Ms. Sewell ............................ X ........... .............

Ms. Noem .............................. ........... ........... ............. Ms. DelBene ......................... X ........... .............

Mr. Holding ........................... ........... X ............. Ms. Chu ................................ X ........... .............

Mr. Smith (MO) ..................... ........... X .............

Mr. Rice ................................ ........... X .............

Mr. Schweikert ...................... ........... X .............

Ms. Walorski ......................... ........... X .............

Mr. Curbelo ........................... ........... X .............

Mr. Bishop ............................ ........... X .............

Mr. LaHood ............................ ........... X .............

Mr. Wenstrup ........................ ........... X .............

The vote on the amendment offered by Ms. Chu to the amendment in the nature of a substitute to H.R. 5861, which would remove the 50 percent limit on Federal TANF funds that can be 

transferred for child care, was not agreed to by a roll call vote of 

22 nays to 14 yeas (with a quorum being present). The vote was 

as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. ........... X ............. Mr. Neal ............................... X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Nunes ............................. ........... X ............. Mr. Lewis .............................. ........... ........... .............

Mr. Reichert .......................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Roskam ........................... ........... X ............. Mr. Thompson ...................... ........... ........... .............

Mr. Buchanan ....................... ........... X ............. Mr. Larson ............................ X ........... .............

Mr. Smith (NE) ...................... ........... X ............. Mr. Blumenauer ................... X ........... .............

Ms. Jenkins ........................... ........... X ............. Mr. Kind ............................... X ........... .............

Mr. Paulsen ........................... ........... X ............. Mr. Pascrell .......................... X ........... .............

Mr. Marchant ........................ ........... X ............. Mr. Crowley .......................... X ........... .............

Ms. Black .............................. ........... ........... ............. Mr. Davis .............................. X ........... .............

Mr. Reed ............................... ........... X ............. Ms. Sanchez ......................... X ........... .............

Mr. Kelly ................................ ........... X ............. Mr. Higgins .......................... X ........... .............

Mr. Renacci ........................... ........... X ............. Ms. Sewell ............................ X ........... .............

Ms. Noem .............................. ........... ........... ............. Ms. DelBene ......................... X ........... .............

Mr. Holding ........................... ........... X ............. Ms. Chu ................................ X ........... .............

Mr. Smith (MO) ..................... ........... X .............

Mr. Rice ................................ ........... X .............

Mr. Schweikert ...................... ........... X .............

Ms. Walorski ......................... ........... X .............

Mr. Curbelo ........................... ........... X .............

Mr. Bishop ............................ ........... X .............

Mr. LaHood ............................ ........... X .............

Mr. Wenstrup ........................ ........... X .............

The vote on Mr. Roskam’s motion to table Mr. Davis’s appeal of 

the ruling of the Chair was agreed to by a roll call vote of 22 yeas 

to 14 nays (with a quorum being present). The vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. X ........... ............. Mr. Neal ............................... ........... X .............

Mr. Johnson ........................... X ........... ............. Mr. Levin .............................. ........... X .............

Mr. Nunes ............................. X ........... ............. Mr. Lewis .............................. ........... ........... .............

Mr. Reichert .......................... X ........... ............. Mr. Doggett .......................... ........... X .............

56 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Roskam ........................... X ........... ............. Mr. Thompson ...................... ........... ........... .............

Mr. Buchanan ....................... X ........... ............. Mr. Larson ............................ ........... X .............

Mr. Smith (NE) ...................... X ........... ............. Mr. Blumenauer ................... ........... X .............

Ms. Jenkins ........................... X ........... ............. Mr. Kind ............................... ........... X .............

Mr. Paulsen ........................... X ........... ............. Mr. Pascrell .......................... ........... X .............

Mr. Marchant ........................ X ........... ............. Mr. Crowley .......................... ........... X .............

Ms. Black .............................. ........... ........... ............. Mr. Davis .............................. ........... X .............

Mr. Reed ............................... X ........... ............. Ms. Sanchez ......................... ........... X .............

Mr. Kelly ................................ X ........... ............. Mr. Higgins .......................... ........... X .............

Mr. Renacci ........................... X ........... ............. Ms. Sewell ............................ ........... X .............

Ms. Noem .............................. ........... ........... ............. Ms. DelBene ......................... ........... X .............

Mr. Holding ........................... X ........... ............. Ms. Chu ................................ ........... X .............

Mr. Smith (MO) ..................... X ........... .............

Mr. Rice ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Ms. Walorski ......................... X ........... .............

Mr. Curbelo ........................... X ........... .............

Mr. Bishop ............................ X ........... .............

Mr. LaHood ............................ X ........... .............

Mr. Wenstrup ........................ X ........... .............

H.R. 5861 was ordered favorably reported to the House of Representatives as amended by a roll call vote of 22 yeas to 14 nays 

(with a quorum being present). The vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. X ........... ............. Mr. Neal ............................... ........... X .............

Mr. Johnson ........................... X ........... ............. Mr. Levin .............................. ........... X .............

Mr. Nunes ............................. X ........... ............. Mr. Lewis .............................. ........... ........... .............

Mr. Reichert .......................... X ........... ............. Mr. Doggett .......................... ........... X .............

Mr. Roskam ........................... X ........... ............. Mr. Thompson ...................... ........... ........... .............

Mr. Buchanan ....................... X ........... ............. Mr. Larson ............................ ........... X .............

Mr. Smith (NE) ...................... X ........... ............. Mr. Blumenauer ................... ........... X .............

Ms. Jenkins ........................... X ........... ............. Mr. Kind ............................... ........... X .............

Mr. Paulsen ........................... X ........... ............. Mr. Pascrell .......................... ........... ........... .............

Mr. Marchant ........................ X ........... ............. Mr. Crowley .......................... ........... ........... .............

Ms. Black .............................. ........... ........... ............. Mr. Davis .............................. ........... X .............

Mr. Reed ............................... X ........... ............. Ms. Sanchez ......................... ........... X .............

Mr. Kelly ................................ X ........... ............. Mr. Higgins .......................... ........... X .............

Mr. Renacci ........................... X ........... ............. Ms. Sewell ............................ ........... X .............

Ms. Noem .............................. ........... ........... ............. Ms. DelBene ......................... ........... X .............

Mr. Holding ........................... X ........... ............. Ms. Chu ................................ ........... X .............

Mr. Smith (MO) ..................... X ........... .............

Mr. Rice ................................ X ........... .............

Mr. Schweikert ...................... X ........... .............

Ms. Walorski ......................... X ........... .............

Mr. Curbelo ........................... X ........... .............

Mr. Bishop ............................ X ........... .............

Mr. LaHood ............................ X ........... .............

Mr. Wenstrup ........................ X ........... .............

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. 2792, as reported. 

The Committee agrees with the estimate prepared by the Congressional Budget Office (CBO), which is included below. 

57 

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 5, 2018. 

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. 5861, the Jobs and Opportunity with Benefits and Services for Success 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, 

Director. 

Enclosure. 

H.R. 5861—Jobs and Opportunity with Benefits and Services for 

Success Act 

H.R. 5861 would amend title IV of the Social Security Act to 

make various programmatic and financing changes to the Temporary Assistance for Needy Families (TANF), child care entitlement (CCE), and related programs. Specifically, the bill would: 

• Extend TANF and the healthy marriage promotion and responsible fatherhood grants through 2023 at their 2018 level of 

funding $16.7 billion; 

• Extend CCE through 2023 at $3.5 billion annually, an increase of $608 million over the 2018 funding level; 

• Eliminate the TANF Contingency Fund—a fund that provides additional grants to states that meet an economic need 

test—which was funded at $608 million in 2018; and 

• Change rules about how states may spend their TANF 

grants, how states contribute their own spending toward the 

TANF program, and what states must do to engage TANF recipients in work and training. 

Federal costs: Funding for TANF, the healthy marriage promotion and fatherhood grants, and CCE is scheduled to expire on 

October 1, 2018. By extending those programs through 2023, the 

bill would provide a total of $20.2 billion in additional funding annually. However, CBO already assumes that level of funding in its 

baseline, as required by section 257 of the Balanced Budget and 

58 

Emergency Deficit Control Act of 1985. Therefore, the extension of 

those programs would have no cost relative to the baseline. H.R. 5861 also would increase funding for CCE by $608 million 

while eliminating the TANF contingency fund. Increasing funding 

for CCE would provide additional funding of $608 million annually 

through 2023. However, CBO’s baseline already assumes that level 

of funding, for the TANF contingency fund, in its baseline. CBO estimates that re directing funding from the TANF contingency fund 

to the CCE would have an insignificant net effect on spending. 

H.R. 5861 also would change various TANF rules. Some of those 

changes would increase the rate at which states spend their TANF 

grants, while other changes would decrease that rate. For example, 

the bill would require states to spend 85 percent of their TANF 

grants within three years. Because some states have significant unobligated balances from prior year TANF grants, CBO estimates 

that some states would accelerate their spending in order to meet 

this requirement, increasing outlays over the 2019–2028 period. 

Additionally, the bill would require that 25 percent of each state’s 

TANF grant be used only for core activities that support work. 

CBO estimates that while most states currently meet this spending 

requirement, some states would need to increase their spending on 

core activities over the 2019–2028 period. 

Other changes to the TANF rules under H.R. 5861 would decrease the rate at which states spend their TANF grants, CBO estimates. For example, the bill would prohibit states from transferring a portion of TANF grants to the Social Services Block Grant 

(SSBG) program. CBO estimates that outlays under TANF would 

decrease as states take time to identity how they would otherwise 

spend funds that they have transferred to SSBG in prior years. 

The federal budgetary effects of enacting H.R. 5861 would ultimately depend on how states respond to the bill’s requirements and 

to what extent they would alter their spending patterns under 

TANF. On balance—recognizing the significant uncertainty regarding potential actions by the state—CBO estimates that any net effect on direct spending would not be significant over the 2019–2028 

period. 

Because enacting H.R. 5861 would affect direct spending, pay-asyou-go procedures apply. Enacting the bill would not affect revenues. 

CBO estimates that enacting H.R. 5861 would not increase net 

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

10-year periods beginning in 2029. 

Mandates: For large entitlement grant programs like TANF, the 

Unfunded Mandates Reform Act defines an increase in the stringency of conditions on states or localities as an intergovernmental 

mandate if the affected governments lack authority to amend their 

financial or programmatic responsibilities while continuing to provide required services. Although H.R. 5861 would impose new duties on states, the bill does not contain intergovernmental mandates as defined by UMRA because states possess extensive flexibility in the administration of TANF to offset additional costs. 

Phase-Out of Third-Party Contributions. Under current law, 

states must maintain their historic level of qualified expenditures 

on TANF—their maintenance of effort (MOE) requirement—or face 

reduced federal funding. Currently, states may count the value of 

59 

certain in-kind or cash contributions from non-governmental entities toward that MOE level. H.R. 5861 would phase-out that flexibility and require states to pay all qualified expenditures from 

state or local sources by 2023. The bill would not prohibit the use 

of third-party services, but would limit their application to qualified expenditures. This change would not constitute a mandate 

under UMRA because states may reduce total TANF expenditures 

and continue providing services required under the program. 

Universal Case Management. Under current law, states may require that TANF recipients develop an individual responsibility 

plan. Presently, a majority of states exercise this authority. H.R. 

5861 would require all states to develop individual opportunity 

plans with TANF recipients who are eligible to work, which must 

include an assessment of their education, skills, and work prospects. Those plans also must include the plan’s effect on the wellbeing of children in the family. The bill would add new requirements for state agencies to meet regularly with each recipient to 

monitor progress toward the goals. 

Improper Payments Control. H.R. 5861 would apply the provisions of certain federal laws regarding improper payment to state 

TANF programs. In general, federal law requires covered agencies 

to review programs and activities, identify areas that are susceptible to improper payments, and estimate and report on the magnitude of such improper payments. 

Data and Reporting Requirements. Various provisions in H.R. 

5861 would require states to collect and report certain information 

including indicators on TANF recipients’ employment status, earnings, and educational progress after exiting the program. Additionally, the bill would strike a state option to provide monthly data 

reports using a sample of TANF recipients rather than the full population. 

The bill would not impose private-sector mandates. Any duties 

imposed on TANF recipients would be conditions of federal aid and 

not mandates under UMRA. 

The CBO staff contacts for this estimate are Susanne S. 

Mehlman (for federal costs) and Andrew Laughlin (for impacts on 

states). The estimate was reviewed 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 clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, Committee establishes the following performance related goals and objectives for this legislation: To increase work and self-sufficiency among parents under Title IV–A 

(Temporary Assistance for Needy Families) of the Social Security 

Act. 

60 

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. 

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 rulemakings 

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 in 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 (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

SOCIAL SECURITY ACT 

* * * * * * * 

61 

TITLE IV—GRANTS TO STATES FOR AID AND SERVICES TO 

NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES 

PART A—øBLOCK GRANTS TO STATES FOR 

TEMPORARY ASSISTANCE FOR NEEDY FAMILIES¿ JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES PROGRAM 

SEC. 401. PURPOSE. 

(a) IN GENERAL.—The purpose of this part is to increase the 

flexibility of States in operating a program designed to— 

(1) provide assistance to needy families so that children may 

be cared for in their own homes or in the homes of relatives; 

(2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; 

(3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing 

and reducing the incidence of these pregnancies; øand¿ 

(4) encourage the formation and maintenance of two-parent 

familiesø.¿; and 

(5) reduce child poverty by increasing employment entry, retention, and advancement of needy parents. 

(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any 

State program funded under this part. 

SEC. 402. ELIGIBLE STATES; STATE PLAN. 

(a) IN GENERAL.—As used in this part, the term ‘‘eligible State’’ 

means, with respect to a fiscal year, a State that, during the 27- 

month period ending with the close of the 1st quarter of the fiscal 

year, has submitted to the Secretary a plan that the Secretary has 

øfound¿ approved that includes the following: 

(1) OUTLINE OF FAMILY ASSISTANCE PROGRAM.— 

(A) GENERAL PROVISIONS.—A written document that outlines how the State intends to do the following: 

(i) Conduct a program, designed to serve all political 

subdivisions in the State (not necessarily in a uniform 

manner), that provides assistance to needy families 

with (or expecting) children and provides parents with 

job preparation, work, and support services to enable 

them to leave the program and become self-sufficient. 

ø(ii) Require a parent or caretaker receiving assistance under the program to engage in work (as defined 

by the State) once the State determines the parent or 

caretaker is ready to engage in work, or once the parent or caretaker has received assistance under the 

program for 24 months (whether or not consecutive), 

whichever is earlier, consistent with section 407(e)(2). 

ø(iii) Ensure that parents and caretakers receiving 

assistance under the program engage in work activities in accordance with section 407.¿ 

(ii) Require work-eligible individuals (as defined in 

the regulations promulgated pursuant to section 

407(i)(1)(A)(i)) to engage in work activities consistent 

62 

with section 407(c). The document shall describe any 

other activity that the State will consider a work activity under section 407(c)(13). 

ø(iv)¿ (iii) Take such reasonable steps as the State 

deems necessary to restrict the use and disclosure of 

information about individuals and families receiving 

assistance under the program attributable to funds 

provided by the Federal Government. 

ø(v)¿ (iv) Establish goals and take action to prevent 

and reduce the incidence of out-of-wedlock pregnancies, with special emphasis on teenage pregnancies, and establish numerical goals for reducing 

the illegitimacy ratio of the State (as defined in section 403(a)(2)(C)(iii)) for calendar years 1996 through 

2005. 

ø(vi)¿ (v) Conduct a program, designed to reach 

State and local law enforcement officials, the education system, and relevant counseling services, that 

provides education and training on the problem of 

statutory rape so that teenage pregnancy prevention 

programs may be expanded in scope to include men. 

ø(vii)¿ (vi) Implement policies and procedures as 

necessary to prevent access to assistance provided 

under the State program funded under this part 

through any electronic fund transaction in an automated teller machine or point-of-sale device located in 

a place described in section 408(a)(12), including a 

plan to ensure that recipients of the assistance have 

adequate access to their cash assistance. 

ø(viii)¿ (vii) Ensure that recipients of assistance provided under the State program funded under this part 

have access to using or withdrawing assistance with 

minimal fees or charges, including an opportunity to 

access assistance with no fee or charges, and are provided information on applicable fees and surcharges 

that apply to electronic fund transactions involving 

the assistance, and that such information is made 

publicly available. 

(viii) Describe the case management practices of the 

State with respect to the requirements of section 408(b), 

provide a copy of the form or forms that will be used 

to assess a work-eligible individual (as so defined) and 

prepare an individual opportunity plan for the individual, describe how the State will ensure that such a 

plan is reviewed in accordance with section 408(b)(5), 

and describe how the State will measure progress 

under the plan. 

(ix) Propose the requisite levels of performance for 

the State for purposes of section 407(a)(3)(D) for each 

year in the 2-year period referred to in subsection (d) 

of this section, and provide an explanation with supporting data of why each such level is appropriate. 

(x) Describe how the State will engage low-income 

noncustodial parents paying child support and how 

such a parent will be provided with access to work supVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00062 Fmt 6659 Sfmt 6603 E:\HR\OC\HR754.XXX HR754
63 

port and other services under the program to which the 

parent is referred to support their employment and advancement. 

(xi) Describe how the State will comply with improper payments provisions in section 404(l). 

(xii) Describe coordination with other programs, including whether the State intends to exercise authority 

provided by section 404(d) of this Act to transfer any 

funds paid to the State under this part, provide assurance that, in the case of a transfer to carry out a program under title I of the Workforce Innovation and Opportunity Act, the State will comply with section 

404(d)(3)(B) of this Act and coordinate with the onestop delivery system under the Workforce Innovation 

and Opportunity Act, and describe how the State will 

coordinate with the programs involved to provide services to families receiving assistance under the program 

referred to in paragraph (1) of this subsection. 

(xiii) Describe how the State will promote marriage, 

such as through temporary disregard of the income of 

a new spouse when an individual receiving assistance 

under the State program marries so that the couple 

doesn’t automatically lose benefits due to marriage. 

(xiv) Describe how the State will allow for a transitional period of benefits, such as through temporary 

earned income disregards or a gradual reduction in the 

monthly benefit amount, for an individual receiving assistance who obtains employment and becomes ineligible due to an increase in income obtained through 

employment or through an increase in wages. 

(B) SPECIAL PROVISIONS.— (i) The document shall indicate whether the State 

intends to treat families moving into the State from 

another State differently than other families under the 

program, and if so, how the State intends to treat such 

families under the program. 

(ii) The document shall indicate whether the State 

intends to provide assistance under the program to individuals who are not citizens of the United States, 

and if so, shall include an overview of such assistance. 

(iii) The document shall set forth objective criteria 

for the delivery of benefits and the determination of 

eligibility and for fair and equitable treatment, including an explanation of how the State will provide opportunities for recipients who have been adversely affected to be heard in a State administrative or appeal 

process. 

ø(iv) Not later than 1 year after the date of enactment of this section, unless the chief executive officer 

of the State opts out of this provision by notifying the 

Secretary, a State shall, consistent with the exception 

provided in section 407(e)(2), require a parent or caretaker receiving assistance under the program who, 

after receiving such assistance for 2 months is not exempt from work requirements and is not engaged in 

64 

work, as determined under section 407(c), to participate in community service employment, with minimum hours per week and tasks to be determined by 

the State. 

ø(v) The document shall indicate whether the State 

intends to assist individuals to train for, seek, and 

maintain employment— 

ø(I) providing direct care in a long-term care facility (as such terms are defined under section 

2011); or 

ø(II) in other occupations related to elder care 

determined appropriate by the State for which the 

State identifies an unmet need for service personnel, 

and, if so, shall include an overview of such assistance.¿ 

(2) CERTIFICATION THAT THE STATE WILL OPERATE A CHILD

SUPPORT ENFORCEMENT PROGRAM.—A certification by the chief 

executive officer of the State that, during the fiscal year, the 

State will operate a child support enforcement program under 

the State plan approved under part D. 

(3) CERTIFICATION THAT THE STATE WILL OPERATE A FOSTER

CARE AND ADOPTION ASSISTANCE PROGRAM.—A certification by 

the chief executive officer of the State that, during the fiscal 

year, the State will operate a foster care and adoption assistance program under the State plan approved under part E, 

and that the State will take such actions as are necessary to 

ensure that children receiving assistance under such part are 

eligible for medical assistance under the State plan under title 

XIX. 

(4) CERTIFICATION OF THE ADMINISTRATION OF THE PROGRAM.—A certification by the chief executive officer of the 

State specifying which State agency or agencies will administer 

and supervise the program referred to in paragraph (1) for the 

fiscal year, which shall include assurances that local governments and private sector organizations— 

(A) have been consulted regarding the plan and design 

of welfare services in the State so that services are provided in a manner appropriate to local populations; and 

(B) have had at least 45 days to submit comments on the 

plan and the design of such services. 

(5) CERTIFICATION THAT THE STATE WILL PROVIDE INDIANS

WITH EQUITABLE ACCESS TO ASSISTANCE.—A certification by the 

chief executive officer of the State that, during the fiscal year, 

the State will provide each member of an Indian tribe, who is 

domiciled in the State and is not eligible for assistance under 

a tribal family assistance plan approved under section 412, 

with equitable access to assistance under the State program 

funded under this part attributable to funds provided by the 

Federal Government. 

(6) CERTIFICATION OF STANDARDS AND PROCEDURES TO EN- SURE AGAINST PROGRAM FRAUD AND ABUSE.—A certification by 

the chief executive officer of the State that the State has established and is enforcing standards and procedures to ensure 

against program fraud and abuse, including standards and proVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00064 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
65 

cedures concerning nepotism, conflicts of interest among individuals responsible for the administration and supervision of 

the State program, kickbacks, and the use of political patronage. 

(7) OPTIONAL CERTIFICATION OF STANDARDS AND PROCEDURES

TO ENSURE THAT THE STATE WILL SCREEN FOR AND IDENTIFY DO- MESTIC VIOLENCE.— (A) IN GENERAL.—At the option of the State, a certification by the chief executive officer of the State that the 

State has established and is enforcing standards and procedures to— 

(i) screen and identify individuals receiving assistance under this part with a history of domestic violence while maintaining the confidentiality of such individuals; 

(ii) refer such individuals to counseling and supportive services; and 

(iii) waive, pursuant to a determination of good 

cause, other program requirements such as time limits 

(for so long as necessary) for individuals receiving assistance, residency requirements, child support cooperation requirements, and family cap provisions, in 

cases where compliance with such requirements would 

make it more difficult for individuals receiving assistance under this part to escape domestic violence or unfairly penalize such individuals who are or have been 

victimized by such violence, or individuals who are at 

risk of further domestic violence. 

(B) DOMESTIC VIOLENCE DEFINED.—For purposes of this 

paragraph, the term ‘‘domestic violence’’ has the same 

meaning as the term ‘‘battered or subjected to extreme cruelty’’, as defined in section 408(a)(7)(C)(iii). 

(b) PLAN AMENDMENTS.—Within 30 days after a State amends a 

plan submitted pursuant to subsection (a), the State shall notify 

the Secretary of the amendment. 

ø(c) PUBLIC AVAILABILITY OF STATE PLAN SUMMARY.—The State 

shall make available to the public a summary of any plan or plan 

amendment submitted by the State under this section.¿ 

(c) PUBLIC AVAILABILITY OF STATE PLANS.—The Secretary shall 

make available to the public a link to any plan or plan amendment 

submitted by a State under this subsection. 

(d) 2-YEAR PLAN.—A plan submitted pursuant to this section shall 

be designed to be implemented during a 2-year period. 

(e) COMBINED PLAN ALLOWED.—A State may submit to the Secretary and the Secretary of Labor a combined State plan that meets 

the requirements of subsections (a) and (d) and that is for programs 

and activities under the Workforce Innovation and Opportunity Act. 

(f) APPROVAL OF PLANS.—The Secretary shall approve any plan 

submitted pursuant to this section that meets the requirements of 

subsections (a) through (d). 

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 ø2017 

66 

and 2018¿ 2019 through 2023, a grant in an amount equal 

to the State family assistance grant. 

(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 øpercentage specified in section 413(h)(1)¿ the sum of the percentages specified in sections 406(b) and 413(h) 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 ø2017 and 2018¿ 2019 

through 2023 $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 

67 

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 

(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 WEL- FARE AND øTANF¿ JOBS 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 

68 

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. 

(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 PROMOTING 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 FATHER- HOOD.—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 

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69 

fare-to-work programs, referrals to local employment training initiatives, and other methods. 

(IV) Activities to promote responsible fatherhood 

that are conducted through a contract with a nationally 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 ø2017 and 2018¿ 2019 

through 2023 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) øfor 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. 

ø(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN

CERTAIN STATES.— ø(A) IN GENERAL.—Each qualifying State shall, subject 

to subparagraph (F), be entitled to receive from the Secretary— 

ø(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 

ø(ii) for each of fiscal years 1999, 2000, and 2001, a 

grant in an amount equal to the sum of— 

ø(I) the amount (if any) required to be paid to 

the State under this paragraph for the immediately preceding fiscal year; and 

ø(II) 2.5 percent of the sum of— 

ø(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 

ø(bb) the amount (if any) required to be 

paid to the State under this paragraph for the 

70 

fiscal year preceding the fiscal year for which 

the grant is to be made. 

ø(B) PRESERVATION OF GRANT WITHOUT INCREASES FOR

STATES FAILING TO REMAIN QUALIFYING STATES.—Each 

State that is not a qualifying State for a fiscal year specified 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. 

ø(C) QUALIFYING STATE.— 

ø(i) IN GENERAL.—For purposes of this paragraph, a 

State is a qualifying State for a fiscal year if— 

ø(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 

ø(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. 

ø(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). 

ø(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— 

ø(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 

ø(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. 

ø(D) DEFINITIONS.—As used in this paragraph: 

ø(i) LEVEL OF WELFARE SPENDING PER POOR PER- SON.—The term ‘‘level of State welfare spending per 

poor person’’ means, with respect to a State and a fiscal year— 

ø(I) the sum of— 

ø(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 

71 

ø(bb) the amount (if any) paid to the State 

under this paragraph for the immediately preceding fiscal year; divided by 

ø(II) the number of individuals, according to the 

1990 decennial census, who were residents of the 

State and whose income was below the poverty 

line. 

ø(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— 

ø(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 

ø(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. 

ø(iii) STATE.—The term ‘‘State’’ means each of the 50 

States of the United States and the District of Columbia. 

ø(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. 

ø(F) GRANTS REDUCED PRO RATA IF INSUFFICIENT APPROPRIATIONS.—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. 

ø(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. 

ø(H) REAUTHORIZATION.—Notwithstanding any other 

provision of this paragraph— 

ø(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; 

ø(ii) subparagraph (G) shall be applied as if ‘‘fiscal 

year 2011’’ were substituted for ‘‘fiscal year 2001’’; 

72 

ø(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. 

ø(4) BONUS TO REWARD HIGH PERFORMANCE STATES.— ø(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. 

ø(B) AMOUNT OF GRANT.— ø(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. 

ø(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. 

ø(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). 

ø(D) SCORING OF STATE PERFORMANCE; SETTING OF PER- FORMANCE THRESHOLDS.—For each bonus year, the Secretary shall— 

ø(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 

ø(ii) prescribe a performance threshold in such a 

manner so as to ensure that— 

ø(I) the average annual total amount of grants 

to be made under this paragraph for each bonus 

year equals $200,000,000; and 

ø(II) the total amount of grants to be made 

under this paragraph for all bonus years equals 

$1,000,000,000. 

ø(E) DEFINITIONS.—As used in this paragraph: 

ø(i) BONUS YEAR.—The term ‘‘bonus year’’ means fiscal years 1999, 2000, 2001, 2002, and 2003. 

ø(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. 

ø(F) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

73 

appropriated for fiscal years 1999 through 2003 

$1,000,000,000 for grants under this paragraph. 

ø(5) WELFARE-TO-WORK GRANTS.— ø(A) FORMULA GRANTS.— ø(i) ENTITLEMENT.—A State shall be entitled to receive from the Secretary of Labor a grant for each fiscal 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— 

ø(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 

ø(II) the allotment of the State under clause (iii) 

of this subparagraph for the fiscal year. 

ø(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: 

ø(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— 

ø(aa) describes how, consistent with this 

subparagraph, the State will use any funds 

provided under this subparagraph during the 

fiscal year; 

ø(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; 

ø(cc) contains evidence that the plan was 

developed in consultation and coordination 

with appropriate entitites in sub-State areas; 

ø(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); 

ø(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 

74 

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 

ø(ff) describes how the State will ensure 

that a private industry council to which information 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. 

ø(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. 

ø(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. 

ø(IV) The State is an eligible State for the fiscal 

year. 

ø(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. 

ø(iii) ALLOTMENTS TO WELFARE-TO-WORK STATES.— ø(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. 

ø(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. 

ø(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. 

ø(iv) AVAILABLE AMOUNT.—As used in this subparagraph, the term ‘‘available amount’’ means, for a fiscal 

year, the sum of— 

ø(I) 75 percent of the sum of— 

ø(aa) the amount specified in subparagraph 

(H) for the fiscal year, minus the total of the 

75 

amounts reserved pursuant to subparagraphs 

(E), (F), and (G) for the fiscal year; and 

ø(bb) any amount reserved pursuant to subparagraph (E) for the immediately preceding 

fiscal year that has not been obligated; and 

ø(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. 

ø(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— 

ø(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 

ø(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. 

ø(vi) PROCEDURE FOR DISTRIBUTION OF FUNDS WITH- IN STATES.— ø(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— 

ø(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; 

ø(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 

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76 

portion to the number of unemployed individuals residing in the area relative to the number of such individuals residing in the State. 

ø(II) DISTRIBUTION OF FUNDS.— ø(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. 

ø(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. 

ø(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. 

ø(vii) ADMINISTRATION.— 

ø(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. 

ø(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)— 

ø(aa) the private industry council (or such 

alternate agency) shall remit the funds to the 

Governor; and 

ø(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 

77 

alternate agency designated by the Governor 

to administer the funds in accordance with 

the assurances. 

ø(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. 

ø(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. 

ø(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. 

ø(B) COMPETITIVE GRANTS.— 

ø(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: 

ø(I) The effectiveness of the proposal in— 

ø(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. 

ø(bb) moving recipients of assistance under 

State programs funded under this part who 

are least job ready into unsubsidized employment; and 

ø(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. 

ø(II) At the discretion of the Secretary of Labor, 

any of the following: 

ø(aa) The history of success of the applicant 

in moving individuals with multiple barriers 

into work. 

ø(bb) Evidence of the applicant’s ability to 

leverage private, State, and local resources. 

78 

ø(cc) Use by the applicant of State and local 

resources beyond those required by subparagraph (A). 

ø(dd) Plans of the applicant to coordinate 

with other organizations at the local and 

State level. 

ø(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. 

ø(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. 

ø(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. 

ø(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. 

ø(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— 

ø(I) 25 percent of the sum of— 

ø(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 

ø(bb) any amount reserved pursuant to subparagraph (E) for the immediately preceding 

fiscal year that has not been obligated; and 

ø(II) any amount available for grants under this 

subparagraph for the immediately preceding fiscal 

year that has not been obligated. 

ø(C) LIMITATIONS ON USE OF FUNDS.— ø(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 

79 

lasting unsubsidized employment by means of any of 

the following: 

ø(I) The conduct and administration of community service or work experience programs. 

ø(II) Job creation through public or private sector employment wage subsidies. 

ø(III) On-the-job training. 

ø(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. 

ø(V) Job vouchers for placement, readiness, and 

postemployment services. 

ø(VI) Job retention or support services if such 

services are not otherwise available. 

ø(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. 

ø(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— 

ø(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 

ø(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. 

ø(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: 

ø(I) The noncustodial parent is unemployed, underemployed, or having difficulty in paying child 

support obligations. 

ø(II) At least 1 of the following applies to a 

minor child of the noncustodial parent (with preference in the determination of the noncustodial 

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80 

graph to be provided by the entity to those noncustodial parents with minor children who meet, 

or who have custodial parents who meet, the requirements of item (aa)): 

ø(aa) The minor child or the custodial parent of the minor child meets the requirements 

of subclause (I) or (II) of clause (ii). 

ø(bb) The minor child is eligible for, or is receiving, benefits under the program funded 

under this part. 

ø(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. 

ø(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. 

ø(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: 

ø(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. 

ø(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. 

ø(cc) A commitment by the noncustodial 

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81 

dial parent to make regular child support payments, and if the noncustodial parent has not 

attained 20 years of age, such related activities may include completion of high school, a 

general equivalency degree, or other education directly related to employment. 

ø(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. 

ø(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)— 

ø(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; 

ø(II) to children— 

ø(aa) who have attained 18 years of age but 

not 25 years of age; and 

82 

ø(bb) who, before attaining 18 years of age, 

were recipients of foster care maintenance 

payments (as defined in section 475(4)) under 

part E or were in foster care under the responsibility of a State; 

ø(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 

ø(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). 

ø(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. 

ø(vi) RELATIONSHIP TO OTHER PROVISIONS OF THIS

PART.— 

ø(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. 

ø(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. 

ø(III) ADMINISTRATION.—Section 416 shall not 

apply to the programs under this paragraph. 

ø(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. 

ø(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 

83 

that are not expended within 5 years after the date 

the funds are so provided. 

ø(ix) REGULATIONS.—Within 90 days after the date 

of the enactment of this paragraph, the Secretary of 

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. 

ø(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. 

ø(D) DEFINITIONS.— 

ø(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— 

ø(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 

ø(II) using data for the most recent year for 

which such data is available before the beginning 

of the fiscal year. 

ø(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. 

ø(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. 

ø(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). 

ø(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). 

ø(G) FUNDING FOR EVALUATION OF ABSTINENCE EDUCATION PROGRAMS.— 

84 

ø(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 

evaluate programs under section 510, directly or 

through grants, contracts, or interagency agreements. 

ø(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). 

ø(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. 

ø(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). 

ø(H) APPROPRIATIONS.— 

ø(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— 

ø(I) $1,500,000,000 for fiscal year 1998; and 

ø(II) $1,400,000,000 for fiscal year 1999. 

ø(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. 

ø(I) WORKER PROTECTIONS.— 

ø(i) NONDISPLACEMENT IN WORK ACTIVITIES.— 

ø(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. 

ø(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. 

ø(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— 

ø(aa) when any other individual is on layoff 

from the same or any substantially equivalent 

job; 

ø(bb) if the employer has terminated the 

employment of any regular employee or otherwise caused an involuntary reduction in its 

85 

workforce with the intention of filling the vacancy so created with the participant; or 

ø(cc) if the employer has caused an involuntary reduction to less than full time in hours 

of any employee in the same or a substantially equivalent job. 

ø(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. 

ø(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. 

ø(iv) GRIEVANCE PROCEDURE.— ø(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). 

ø(II) HEARING.—The procedure shall include an 

opportunity for a hearing. 

ø(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— 

ø(aa) suspension or termination of payments from funds provided under this paragraph; 

ø(bb) prohibition of placement of a participant with an employer that has violated 

clause (i), (ii), or (iii); 

ø(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 

ø(dd) where appropriate, other equitable relief. 

ø(IV) APPEALS.— 

ø(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 

86 

State agency administering, or supervising 

the administration of, the State program 

funded under this part. 

ø(bb) FINAL DETERMINATION.—Not later 

than 120 days after the State agency designated under item (aa) receives a grievance 

or complaint made under the procedure established by a State pursuant to subclause (I), 

the State agency shall make a final determination on the appeal. 

ø(v) RULE OF INTERPRETATION.—This subparagraph 

shall not be construed to affect the authority of a State 

to provide or require workers’ compensation. 

ø(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. 

ø(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.¿ 

ø(b) CONTINGENCY FUND.— 

ø(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’’). 

ø(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. 

ø(3) GRANTS.— 

ø(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. 

ø(B) PAYMENT PRIORITY.—The Secretary shall make payments under subparagraph (A) in the order in which the 

Secretary receives requests for such payments. 

ø(C) LIMITATIONS.— 

87 

ø(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. 

ø(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 

total amount appropriated pursuant to paragraph (2) 

for each such fiscal year. 

ø(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. 

ø(6) ANNUAL RECONCILIATION.— 

ø(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— 

ø(i) the total amount paid to the State under paragraph (3) of this subsection in the fiscal year; exceeds 

ø(ii) the product of— 

ø(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); 

ø(II) the State’s reimbursable expenditures for 

the fiscal year; and 

ø(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). 

ø(B) DEFINITIONS.—As used in subparagraph (A): 

ø(i) REIMBURSABLE EXPENDITURES.—The term ‘‘reimbursable expenditures’’ means, with respect to a State 

and a fiscal year, the amount (if any) by which— 

ø(I) countable State expenditures for the fiscal 

year; exceeds 

ø(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. 

ø(ii) COUNTABLE STATE EXPENDITURES.—The term 

‘‘countable expenditures’’ means, with respect to a 

State and a fiscal year— 

ø(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 

ø(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. 

88 

ø(C) ADJUSTMENT OF STATE REMITTANCES.— 

ø(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— 

ø(I) the total adjustment for the fiscal year, 

multiplied by the adjustment percentage for the 

State for the fiscal year; or 

ø(II) the unadjusted net payment to the State 

for the fiscal year. 

ø(ii) TOTAL ADJUSTMENT.—As used in clause (i), the 

term ‘‘total adjustment’’ means— 

ø(I) in the case of fiscal year 1998, $2,000,000; 

ø(II) in the case of fiscal year 1999, $9,000,000; 

ø(III) in the case of fiscal year 2000, 

$16,000,000; and 

ø(IV) in the case of fiscal year 2001, 

$13,000,000. 

ø(iii) ADJUSTMENT PERCENTAGE.—As used in clause 

(i), the term ‘‘adjustment percentage’’ means, with respect to a State and a fiscal year— 

ø(I) the unadjusted net payment to the State for 

the fiscal year; divided by 

ø(II) the sum of the unadjusted net payments to 

all States for the fiscal year. 

ø(iv) UNADJUSTED NET PAYMENT.—As used in this 

subparagraph, the term, ‘‘unadjusted net payment’’ 

means with respect to a State and a fiscal year— 

ø(I) the total amount paid to the State under 

paragraph (3) in the fiscal year; minus 

ø(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. 

ø(7) STATE DEFINED.—As used in this subsection, the term 

‘‘State’’ means each of the 50 States and the District of Columbia. 

ø(8) ANNUAL REPORTS.—The Secretary shall annually report 

to the Congress on the status of the Fund.¿ 

SEC. 404. USE OF GRANTS. 

(a) GENERAL RULES.—Subject to this part, a State to which a 

grant is made under section 403 may use the grant— 

(1) in any manner that is reasonably calculated to accomplish the purpose of this part, including to provide low income 

households with assistance in meeting home heating and cooling costs; or 

(2) in any manner that the State was authorized to use 

amounts received under part A or F, as such parts were in effect on September 30, 1995, or (at the option of the State) August 21, 1996. 

(b) LIMITATION ON USE OF GRANT FOR ADMINISTRATIVE PURPOSES.— 

(1) LIMITATION.—A State to which a grant is made under 

section 403 shall not expend more than 15 percent of the grant 

for administrative purposes. 

89 

ø(2) EXCEPTION.—Paragraph (1) shall not apply to the use of 

a grant for information technology and computerization needed 

for tracking or monitoring required by or under this part.¿ 

(2) EXCEPTIONS.—Paragraph (1) of this subsection shall not 

apply to the use of a grant for— 

(A) information technology and computerization needed 

for tracking, monitoring, or data collection required by or 

under this part; or 

(B) case management activities to carry out section 

408(b). 

(c) AUTHORITY TO TREAT INTERSTATE IMMIGRANTS UNDER RULES

OF FORMER STATE.—A State operating a program funded under 

this part may apply to a family the rules (including benefit 

amounts) of the program funded under this part of another State 

if the family has moved to the State from the other State and has 

resided in the State for less than 12 months. 

(d) AUTHORITY TO USE PORTION OF GRANT FOR OTHER PURPOSES.— 

ø(1) IN GENERAL.—Subject to paragraph (2), a State may use 

not more than 30 percent of the amount of any grant made to 

the State under section 403(a) for a fiscal year to carry out a 

State program pursuant to any or all of the following provisions of law: 

ø(A) Subtitle A of title XX of this Act. 

ø(B) The Child Care and Development Block Grant Act 

of 1990. 

ø(2) LIMITATION ON AMOUNT TRANSFERABLE TO SUBTITLE 1 OF

TITLE XX PROGRAMS.— 

ø(A) IN GENERAL.—A State may use not more than the 

applicable percent of the amount of any grant made to the 

State under section 403(a) for a fiscal year to carry out 

State programs pursuant to subtitle 1 of title XX. 

ø(B) APPLICABLE PERCENT.—For purposes of subparagraph (A), the applicable percent is 4.25 percent in the 

case of fiscal year 2001 and each succeeding fiscal year. 

ø(3) APPLICABLE RULES.— 

ø(A) IN GENERAL.—Except as provided in subparagraph 

(B) of this paragraph, any amount paid to a State under 

this part that is used to carry out a State program pursuant to a provision of law specified in paragraph (1) shall 

not be subject to the requirements of this part, but shall 

be subject to the requirements that apply to Federal funds 

provided directly under the provision of law to carry out 

the program, and the expenditure of any amount so used 

shall not be considered to be an expenditure under this 

part. 

ø(B) EXCEPTION RELATING TO SUBTITLE 1 OF TITLE XX

PROGRAMS.—All amounts paid to a State under this part 

that are used to carry out State programs pursuant to subtitle 1 of title XX shall be used only for programs and services to children or their families whose income is less than 

200 percent of the income official poverty line (as defined 

by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus 

90 

Budget Reconciliation Act of 1981) applicable to a family 

of the size involved.¿ 

(1) IN GENERAL.—A State may use not more than 50 percent 

of the grant made to the State under section 403(a)(1) to carry 

out a State program pursuant to any or all of the following provisions of law: 

(A) The Child Care and Development Block Grant Act of 

1990. 

(B) Title I of the Workforce Innovation and Opportunity 

Act. 

(C) Subpart 1 of part B of this title. 

(2) LIMITATION ON AMOUNT TRANSFERRABLE TO SUBPART 1 OF

PART B OF THIS TITLE.— 

(A) In general.—A State may use not more than the applicable percentage of the amount of a grant made to the 

State under section 403(a)(1) to carry out State programs 

pursuant to subpart 1 of part B. 

(B) APPLICABLE PERCENTAGE.—For purposes of subparagraph (A), the applicable percentage is 10 percent. 

(3) APPLICABLE RULES.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B) of this paragraph, any amount paid to a State under 

this part that is used to carry out a State program pursuant to a provision of law specified in paragraph (1) shall 

not be subject to the requirements of this part, but shall be 

subject to the requirements that apply to Federal funds provided directly under the provision of law to carry out the 

program, and the expenditure of any amount so used shall 

not be considered to be an expenditure under this part. 

(B) FUNDS TRANSFERRED TO THE WIOA.—In the case of 

funds transferred under paragraph (1)(B) of this subsection— 

(i) all of the funds will be used to support families 

eligible for assistance under the State program funded 

under this part; and 

(ii) not more than 15 percent of the funds will be reserved for statewide workforce investment activities referred to in section 128(a)(1) of the Workforce Innovation and Opportunity Act. 

(4) EXCLUSION OF STATES EXCLUDING THE STATE JOBS PROGRAM AS A MANDATORY ONE-STOP PARTNER UNDER THE WIOA.— 

The authority provided by this subsection may not be exercised 

by a State that has provided the notification referred to in section 407(a)(3)(D). 

ø(e) AUTHORITY TO CARRY OVER CERTAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FUTURE CONTINGENCIES.—A State or 

tribe may use a grant made to the State or tribe under this part 

for any fiscal year to provide, without fiscal year limitation, any 

benefit or service that may be provided under the State or tribal 

program funded under this part.¿ 

(e) DEADLINES FOR OBLIGATION AND EXPENDITURES OF FUNDS BY

STATES.— 

(1) IN GENERAL.—Except as provided in paragraph (2), a 

State to which funds are paid under section 403(a)(1) shall obVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00090 Fmt 6659 Sfmt 6603 E:\HR\OC\HR754.XXX HR754
91 

ligate the funds within 2 years after the date the funds are so 

paid, and shall expend the funds within 3 years after such date. 

(2) EXCEPTION FOR LIMITED AMOUNT OF FUNDS SET ASIDE FOR

FUTURE USE.—A State to which funds are paid under section 

403(a)(1) may reserve not more than 15 percent of the funds for 

future use in the State program funded under this part. 

(f) AUTHORITY TO OPERATE EMPLOYMENT PLACEMENT PRO- GRAM.—A State to which a grant is made under section 403 may 

use the grant to make payments (or provide job placement vouchers) to State-approved public and private job placement agencies 

that provide employment placement services to individuals who receive assistance under the State program funded under this part. 

(g) IMPLEMENTATION OF ELECTRONIC BENEFIT TRANSFER SYSTEM.—A State to which a grant is made under section 403 is encouraged to implement an electronic benefit transfer system for 

providing assistance under the State program funded under this 

part, and may use the grant for such purpose. 

(h) USE OF FUNDS FOR INDIVIDUAL DEVELOPMENT ACCOUNTS.— (1) IN GENERAL.—A State to which a grant is made under 

section 403 may use the grant to carry out a program to fund 

individual development accounts (as defined in paragraph (2)) 

established by individuals eligible for assistance under the 

State program funded under this part. 

(2) INDIVIDUAL DEVELOPMENT ACCOUNTS.— (A) ESTABLISHMENT.—Under a State program carried out 

under paragraph (1), an individual development account 

may be established by or on behalf of an individual eligible 

for assistance under the State program operated under 

this part for the purpose of enabling the individual to accumulate funds for a qualified purpose described in subparagraph (B). 

(B) QUALIFIED PURPOSE.—A qualified purpose described 

in this subparagraph is 1 or more of the following, as provided by the qualified entity providing assistance to the individual under this subsection: 

(i) POSTSECONDARY EDUCATIONAL EXPENSES.—Postsecondary educational expenses paid from an individual development account directly to an eligible educational institution. 

(ii) FIRST HOME PURCHASE.—Qualified acquisition 

costs with respect to a qualified principal residence for 

a qualified first-time homebuyer, if paid from an individual development account directly to the persons to 

whom the amounts are due. 

(iii) BUSINESS CAPITALIZATION.—Amounts paid from 

an individual development account directly to a business capitalization account which is established in a 

federally insured financial institution and is restricted 

to use solely for qualified business capitalization expenses. 

(C) CONTRIBUTIONS TO BE FROM EARNED INCOME.—An individual may only contribute to an individual development 

account such amounts as are derived from earned income, 

as defined in section 911(d)(2) of the Internal Revenue 

Code of 1986. 

92 

(D) WITHDRAWAL OF FUNDS.—The Secretary shall establish such regulations as may be necessary to ensure that 

funds held in an individual development account are not 

withdrawn except for 1 or more of the qualified purposes 

described in subparagraph (B). 

(3) REQUIREMENTS.— (A) IN GENERAL.—An individual development account established under this subsection shall be a trust created or 

organized in the United States and funded through periodic contributions by the establishing individual and 

matched by or through a qualified entity for a qualified 

purpose (as described in paragraph (2)(B)). 

(B) QUALIFIED ENTITY.—As used in this subsection, the 

term ‘‘qualified entity’’ means— 

(i) a not-for-profit organization described in section 

501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; 

or 

(ii) a State or local government agency acting in cooperation with an organization described in clause (i). 

(4) NO REDUCTION IN BENEFITS.—Notwithstanding any other 

provision of Federal law (other than the Internal Revenue 

Code of 1986) that requires consideration of 1 or more financial 

circumstances of an individual, for the purpose of determining 

eligibility to receive, or the amount of, any assistance or benefit authorized by such law to be provided to or for the benefit 

of such individual, funds (including interest accruing) in an individual development account under this subsection shall be 

disregarded for such purpose with respect to any period during 

which such individual maintains or makes contributions into 

such an account. 

(5) DEFINITIONS.—As used in this subsection— 

(A) ELIGIBLE EDUCATIONAL INSTITUTION.—The term ‘‘eligible educational institution’’ means the following: 

(i) An institution described in section 481(a)(1) or 

1201(a) of the Higher Education Act of 1965 (20 U.S.C. 

1088(a)(1) or 1141(a)), as such sections are in effect on 

the date of the enactment of this subsection. 

(ii) An area vocational education school (as defined 

in subparagraph (C) or (D) of section 521(4) of the Carl 

D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2471(4))) which is in any State 

(as defined in section 521(33) of such Act), as such sections are in effect on the date of the enactment of this 

subsection. 

(B) POST-SECONDARY EDUCATIONAL EXPENSES.—The term 

‘‘post-secondary educational expenses’’ means— 

(i) tuition and fees required for the enrollment or attendance of a student at an eligible educational institution, and 

(ii) fees, books, supplies, and equipment required for 

courses of instruction at an eligible educational institution. 

(C) QUALIFIED ACQUISITION COSTS.—The term ‘‘qualified 

acquisition costs’’ means the costs of acquiring, conVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00092 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
93 

structing, or reconstructing a residence. The term includes 

any usual or reasonable settlement, financing, or other 

closing costs. 

(D) QUALIFIED BUSINESS.—The term ‘‘qualified business’’ 

means any business that does not contravene any law or 

public policy (as determined by the Secretary). 

(E) QUALIFIED BUSINESS CAPITALIZATION EXPENSES.—The 

term ‘‘qualified business capitalization expenses’’ means 

qualified expenditures for the capitalization of a qualified 

business pursuant to a qualified plan. 

(F) QUALIFIED EXPENDITURES.—The term ‘‘qualified expenditures’’ means expenditures included in a qualified 

plan, including capital, plant, equipment, working capital, 

and inventory expenses. 

(G) QUALIFIED FIRST-TIME HOMEBUYER.— 

(i) IN GENERAL.—The term ‘‘qualified first-time 

homebuyer’’ means a taxpayer (and, if married, the 

taxpayer’s spouse) who has no present ownership interest in a principal residence during the 3-year period 

ending on the date of acquisition of the principal residence to which this subsection applies. 

(ii) DATE OF ACQUISITION.—The term ‘‘date of acquisition’’ means the date on which a binding contract to 

acquire, construct, or reconstruct the principal residence to which this subparagraph applies is entered 

into. 

(H) QUALIFIED PLAN.—The term ‘‘qualified plan’’ means 

a business plan which— 

(i) is approved by a financial institution, or by a 

nonprofit loan fund having demonstrated fiduciary integrity, 

(ii) includes a description of services or goods to be 

sold, a marketing plan, and projected financial statements, and 

(iii) may require the eligible individual to obtain the 

assistance of an experienced entrepreneurial advisor. 

(I) QUALIFIED PRINCIPAL RESIDENCE.—The term ‘‘qualified principal residence’’ means a principal residence (within the meaning of section 1034 of the Internal Revenue 

Code of 1986), the qualified acquisition costs of which do 

not exceed 100 percent of the average area purchase price 

applicable to such residence (determined in accordance 

with paragraphs (2) and (3) of section 143(e) of such Code). 

(i) SANCTION WELFARE RECIPIENTS FOR FAILING TO ENSURE THAT

MINOR DEPENDENT CHILDREN ATTEND SCHOOL.—A State to which 

a grant is made under section 403 shall not be prohibited from 

sanctioning a family that includes an adult who has received assistance under any State program funded under this part attributable to funds provided by the Federal Government or under the 

supplemental nutrition assistance program, as defined in section 

3(l) of the Food and Nutrition Act of 2008, if such adult fails to ensure that the minor dependent children of such adult attend school 

as required by the law of the State in which the minor children reside. 

94 

(j) REQUIREMENT FOR HIGH SCHOOL DIPLOMA OR EQUIVALENT.— 

A State to which a grant is made under section 403 shall not be 

prohibited from sanctioning a family that includes an adult who is 

older than age 20 and younger than age 51 and who has received 

assistance under any State program funded under this part attributable to funds provided by the Federal Government or under the 

supplemental nutrition assistance program, as defined in section 

3(l) of the Food and Nutrition Act of 2008, if such adult does not 

have, or is not working toward attaining, a secondary school diploma or its recognized equivalent unless such adult has been determined in the judgment of medical, psychiatric, or other appropriate professionals to lack the requisite capacity to complete successfully a course of study that would lead to a secondary school 

diploma or its recognized equivalent. 

ø(k) LIMITATIONS ON USE OF GRANT FOR MATCHING UNDER CERTAIN FEDERAL TRANSPORTATION PROGRAM.— 

ø(1) USE LIMITATIONS.—A State to which a grant is made 

under section 403 may not use any part of the grant to match 

funds made available under section 3037 of the Transportation 

Equity Act for the 21st Century, unless— 

ø(A) the grant is used for new or expanded transportation services (and not for construction) that benefit individuals described in subparagraph (C), and not to subsidize current operating costs; 

ø(B) the grant is used to supplement and not supplant 

other State expenditures on transportation; 

ø(C) the preponderance of the benefits derived from such 

use of the grant accrues to individuals who are— 

ø(i) recipients of assistance under the State program 

funded under this part; 

ø(ii) former recipients of such assistance; 

ø(iii) noncustodial parents who are described in section 403(a)(5)(C)(iii); and 

ø(iv) low-income individuals who are at risk of qualifying for such assistance; and 

ø(D) the services provided through such use of the grant 

promote the ability of such recipients to engage in work activities (as defined in section 407(d)). 

ø(2) AMOUNT LIMITATION.—From a grant made to a State 

under section 403(a), the amount that a State uses to match 

funds described in paragraph (1) of this subsection shall not 

exceed the amount (if any) by which 30 percent of the total 

amount of the grant exceeds the amount (if any) of the grant 

that is used by the State to carry out any State program described in subsection (d)(1) of this section. 

ø(3) RULE OF INTERPRETATION.—The provision by a State of 

a transportation benefit under a program conducted under section 3037 of the Transportation Equity Act for the 21st Century, to an individual who is not otherwise a recipient of assistance under the State program funded under this part, using 

funds from a grant made under section 403(a) of this Act, shall 

not be considered to be the provision of assistance to the individual under the State program funded under this part.¿ 

(k) PROHIBITIONS.— 

95 

(1) USE OF FUNDS FOR PERSONS WITH INCOME GREATER THAN

TWICE THE POVERTY LINE.—A State to which a grant is made 

under this part shall not use the grant to provide any assistance or services to a family whose monthly income exceeds twice 

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))). 

(2) DIRECT SPENDING ON CHILD CARE SERVICES OR ACTIVITIES

OR CHILD WELFARE SERVICES OR ACTIVITIES.—A State to which 

a grant is made under this part shall not use the grant for direct spending on child care services or activities or direct spending on child welfare services or activities. 

(l) APPLICABILITY OF IMPROPER PAYMENTS LAWS.— 

(1) IN GENERAL.—The Improper Payments Information Act of 

2002 and the Improper Payments Elimination and Recovery Act 

of 2010 shall apply to a State in respect of the State program 

funded under this part in the same manner in which such Acts 

apply to a Federal agency. 

(2) REGULATIONS.—Within 2 years after the date of the enactment of this subsection, the Secretary shall prescribe regulations governing how a State reviews and reports improper payments under the State program funded under this part. 

* * * * * * * 

øSEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS. 

ø(a) LOAN AUTHORITY.— 

ø(1) IN GENERAL.—The Secretary shall make loans to any 

loan-eligible State, for a period to maturity of not more than 

3 years. 

ø(2) LOAN-ELIGIBLE STATE.—As used in paragraph (1), the 

term ‘‘loan-eligible State’’ means a State against which a penalty has not been imposed under section 409(a)(1). 

ø(b) RATE OF INTEREST.—The Secretary shall charge and collect 

interest on any loan made under this section at a rate equal to the 

current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan. 

ø(c) USE OF LOAN.—A State shall use a loan made to the State 

under this section only for any purpose for which grant amounts 

received by the State under section 403(a) may be used, including— 

ø(1) welfare anti-fraud activities; and 

ø(2) the provision of assistance under the State program to 

Indian families that have moved from the service area of an 

Indian tribe with a tribal family assistance plan approved 

under section 412. 

ø(d) LIMITATION ON TOTAL AMOUNT OF LOANS TO A STATE.—The 

cumulative dollar amount of all loans made to a State under this 

section during fiscal years 1997 through 2003 shall not exceed 10 

percent of the State family assistance grant. 

ø(e) LIMITATION ON TOTAL AMOUNT OF OUTSTANDING LOANS.— 

The total dollar amount of loans outstanding under this section 

may not exceed $1,700,000,000. 

96 

ø(f) APPROPRIATION.—Out of any money in the Treasury of the 

United States not otherwise appropriated, there are appropriated 

such sums as may be necessary for the cost of loans under this section.¿ 

SEC. 406. TECHNICAL ASSISTANCE. 

(a) IN GENERAL.—The Secretary shall provide technical assistance 

to States and Indian tribes (which may include providing technical 

assistance on a reimbursable basis), which shall be provided by 

qualified experts on practices grounded in scientifically valid research, where appropriate, to support activities related publication 

of State performance under section 407(b) and to carry out State 

and tribal programs funded under this part. 

(b) RESERVATION OF FUNDS.—The Secretary shall reserve not 

more than 0.25 percent of the amount appropriated by section 

403(a)(1)(C) for a fiscal year to carry out subsection (a) of this section. 

SEC. 407. MANDATORY WORK REQUIREMENTS. 

ø(a) PARTICIPATION RATE REQUIREMENTS.— 

ø(1) ALL FAMILIES.—A State to which a grant is made under 

section 403 for a fiscal year shall achieve the minimum participation rate specified in the following table for the fiscal year 

with respect to all families receiving 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)): 

The minimum 

participation 

øIf the fiscal year is: rate is: 

1997 ................................................................................... 25 

1998 ................................................................................... 30 

1999 ................................................................................... 35 

2000 ................................................................................... 40 

2001 ................................................................................... 45 

2002 or thereafter ............................................................ 50. 

ø(2) 2-PARENT FAMILIES.—A State to which a grant is made 

under section 403 for a fiscal year shall achieve the minimum 

participation rate specified in the following table for the fiscal 

year with respect to 2-parent families receiving 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)): 

The minimum 

participation 

øIf the fiscal year is: rate is: 

1997 ................................................................................... 75 

1998 ................................................................................... 75 

1999 or thereafter ............................................................ 90. 

ø(b) CALCULATION OF PARTICIPATION RATES.— 

ø(1) ALL FAMILIES.— 

ø(A) AVERAGE MONTHLY RATE.—For purposes of subsection (a)(1), the participation rate for all families of a 

State for a fiscal year is the average of the participation 

rates for all families of the State for each month in the fiscal year. 

97 

ø(B) MONTHLY PARTICIPATION RATES.—The participation 

rate of a State for all families of the State for a month, expressed as a percentage, is— 

ø(i) the number of families receiving 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)) that 

include an adult or a minor child head of household 

who is engaged in work for the month; divided by 

ø(ii) the amount by which— 

ø(I) the number of families receiving such assistance during the month that include an adult 

or a minor child head of household receiving such 

assistance; exceeds 

ø(II) the number of families receiving such assistance that are subject in such month to a penalty described in subsection (e)(1) but have not 

been subject to such penalty for more than 3 

months within the preceding 12-month period 

(whether or not consecutive). 

ø(2) 2-PARENT FAMILIES.— ø(A) AVERAGE MONTHLY RATE.—For purposes of subsection (a)(2), the participation rate for 2-parent families of 

a State for a fiscal year is the average of the participation 

rates for 2-parent families of the State for each month in 

the fiscal year. 

ø(B) MONTHLY PARTICIPATION RATES.—The participation 

rate of a State for 2-parent families of the State for a 

month shall be calculated by use of the formula set forth 

in paragraph (1)(B), except that in the formula the term 

‘‘number of 2-parent families’’ shall be substituted for the 

term ‘‘number of families’’ each place such latter term appears. 

ø(C) FAMILY WITH A DISABLED PARENT NOT TREATED AS

A 2-PARENT FAMILY.—A family that includes a disabled parent shall not be considered a 2-parent family for purposes 

of subsections (a) and (b) of this section. 

ø(3) PRO RATA REDUCTION OF PARTICIPATION RATE DUE TO

CASELOAD REDUCTIONS NOT REQUIRED BY FEDERAL LAW AND

NOT RESULTING FROM CHANGES IN STATE ELIGIBILITY CRITERIA.— 

ø(A) IN GENERAL.—The Secretary shall prescribe regulations for reducing the minimum participation rate otherwise required by this section for a fiscal year by the number of percentage points equal to the number of percentage 

points (if any) by which— 

ø(i) the average monthly number of families receiving assistance during the immediately preceding fiscal 

year 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)) is less than 

ø(ii) the average monthly number of families that 

received assistance under any State program referred 

to in clause (i) during fiscal year 2005. 

98 

The minimum participation rate shall not be reduced to 

the extent that the Secretary determines that the reduction in the number of families receiving such assistance is 

required by Federal law. 

ø(B) ELIGIBILITY CHANGES NOT COUNTED.—The regulations required by subparagraph (A) shall not take into account families that are diverted from a State program 

funded under this part as a result of differences in eligibility criteria under a State program funded under this 

part and the eligibility criteria in effect during fiscal year 

2005. Such regulations shall place the burden on the Secretary to prove that such families were diverted as a direct 

result of differences in such eligibility criteria. 

ø(4) STATE OPTION TO INCLUDE INDIVIDUALS RECEIVING ASSISTANCE UNDER A TRIBAL FAMILY ASSISTANCE PLAN OR TRIBAL

WORK PROGRAM.—For purposes of paragraphs (1)(B) and (2)(B), 

a State may, at its option, include families in the State that 

are receiving assistance under a tribal family assistance plan 

approved under section 412 or under a tribal work program to 

which funds are provided under this part. 

ø(5) STATE OPTION FOR PARTICIPATION REQUIREMENT EXEMP- TIONS.—For any fiscal year, a State may, at its option, not require an individual who is a single custodial parent caring for 

a child who has not attained 12 months of age to engage in 

work, and may disregard such an individual in determining 

the participation rates under subsection (a) for not more than 

12 months.¿ 

(a) PERFORMANCE ACCOUNTABILITY AND WORK OUTCOMES.— (1) PURPOSE.—The purpose of this subsection is to provide for 

the establishment of performance accountability measures to assess the effectiveness of States in increasing employment, retention, and advancement among families receiving assistance 

under the State program funded under this part. 

(2) IN GENERAL.—A State to which a grant is made under section 403 for a fiscal year shall achieve the requisite level of performance on an indicator described in paragraph (3)(B) of this 

subsection for the fiscal year. 

(3) MEASURING STATE PERFORMANCE.— (A) IN GENERAL.—Each State, in consultation with the 

Secretary, shall collect and submit to the Secretary the information necessary to measure the level of performance of 

the State for each indicator described in subparagraph (B), 

for fiscal year 2020 and each fiscal year thereafter, and the 

Secretary shall use the information collected for fiscal year 

2020 to establish the baseline level of performance for each 

State for each such indicator. 

(B) INDICATORS OF PERFORMANCE.—The indicators described in this subparagraph, for a fiscal year, are the following: 

(i) The percentage of individuals who were work-eligible individuals as of the time of exit from the program, who are in unsubsidized employment during the 

2nd quarter after the exit. 

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99 

ment in the 2nd quarter after the exit, who are also in 

unsubsidized employment during the 4th quarter after 

the exit. 

(iii) The median earnings of individuals who were 

work-eligible individuals as of the time of exit from the 

program, who are in unsubsidized employment during 

the 2nd quarter after the exit. 

(iv) The percentage of individuals who have not attained 24 years of age, are attending high school or enrolled in an equivalency program, and are work-eligible individuals or were work-eligible individuals as of 

the time of exit from the program, who obtain a high 

school degree or its recognized equivalent while receiving assistance under the State program funded under 

this part or within 1 year after the exit. 

(C) LEVELS OF PERFORMANCE.— 

(i) IN GENERAL.—For each State submitting a State 

plan pursuant to section 402(a), there shall be established, in accordance with this subparagraph, levels of 

performance for each of the indicators described in subparagraph (B). 

(ii) WEIGHT.—The weight assigned to such an indicator shall be the following: 

(I) 40 percent, in the case of the indicator described in subparagraph (B)(i). 

(II) 25 percent, in the case of the indicator described in subparagraph (B)(ii). 

(III) 25 percent, in the case of the indicator described in subparagraph (B)(iii). 

(IV) 10 percent, in the case of the indicator described in subparagraph (B)(iv). 

(iii) AGREEMENT ON REQUISITE PERFORMANCE LEVEL

FOR EACH INDICATOR.— 

(I) IN GENERAL.—The Secretary and the State 

shall negotiate the requisite level of performance 

for the State with respect to each indicator described in clause (ii), for each of fiscal years 2020 

through 2023, and in the case of each of fiscal 

years 2021 through 2023, shall do so before the beginning of the respective fiscal year. 

(II) REQUIREMENTS IN ESTABLISHING PERFORMANCE LEVELS.—In establishing the requisite levels 

of performance, the State and the Secretary shall— 

(aa) take into account how the levels involved compare with the levels established for 

other States; 

(bb) ensure the levels involved are adjusted, 

using the objective statistical model referred to 

in clause (v), based on— 

(AA) the differences among States in 

economic conditions, including differences 

in unemployment rates or employment 

losses or gains in particular industries; 

and 

100 

(BB) the characteristics of participants 

on entry into the program, including indicators of prior work history, lack of educational or occupational skills attainment, 

or other factors that may affect employment and earnings; and 

(CC) take into account the extent to 

which the levels involved promote continuous improvement in performance by each 

State. 

(iv) REVISIONS BASED ON ECONOMIC CONDITIONS AND

INDIVIDUALS RECEIVING ASSISTANCE DURING THE FISCAL YEAR.—The Secretary shall, in accordance with the 

objective statistical model referred to in clause (v), revise the requisite levels of performance for a State and 

a fiscal year to reflect the economic conditions and 

characteristics of the relevant individuals in the State 

during the fiscal year. 

(v) STATISTICAL ADJUSTMENT MODEL.—The Secretary 

shall use an objective statistical model to make adjustments to the requisite levels of performance for the economic conditions and characteristics of the relevant individuals, and shall consult with the Secretary of 

Labor to develop a model that is the same as or similar 

to the model described in section 116(b)(3)(A)(viii) of 

the Workforce Innovation and Opportunity Act (29 

U.S.C. 3141(b)(3)(A)(viii)). 

(vi) DEFINITION OF EXIT.—In this subsection, the 

term ‘‘exit’’ means, with respect to a State program 

funded under this part, ceases to a receive a JOBS benefit under the program. 

(D) STATE OPTION TO ESTABLISH COMMON EXIT MEASURES.—Notwithstanding subparagraph (C)(vi) of this paragraph, a State that has not provided the notification under 

section 121(b)(1)(C)(ii) of the Workforce Innovation and Opportunity Act to exclude the State program funded under 

this part as a mandatory one-stop partner may adopt an 

alternative definition of ‘‘exit’’ for the purpose of creating 

common exit measures to improve alignment with workforce programs operated under title I of such Act. 

(E) REGULATIONS.—In order to ensure nationwide comparability of data, the Secretary, after consultation the Secretary of Labor and with States, shall issue regulations 

governing the establishment of the performance accountability system under this subsection and a template for performance reports to be used by all States consistent with 

subsection (b). 

(b) PUBLICATION OF STATE PERFORMANCE.—The Secretary shall, 

directly or through the use of grants or contracts, establish and operate an Internet website that is accessible to the public, with a 

dashboard that is regularly updated and provides easy-to-understand information on the performance of each State program funded 

under this part, including a profile for each such program, expressed by use of a template, which shall include— 

101 

(1) information on the indicators and requisite performance 

levels established for the State under subsection (a), including, 

with respect to each such level, whether the State achieves, exceeds, or fails to achieve the level on an ongoing basis, including— 

(A) information on any adjustments made to the requisite 

levels using the statistical adjustment model described in 

subsection (a)(3)(D)(v); and 

(B) a grade based on the overall performance of the State, 

as determined by the Secretary and in consultation with 

the State, and the overall performance shall be graded 

based on the performance indicators and weights for each 

such indicator as described in subsection (a); 

(2) information reported under section 411 on the characteristics and demographics of individuals receiving assistance under 

the State program, including— 

(A) the number and percentage of child-only cases and 

reason why the cases are child-only; and 

(B) the average weekly number of hours that each workeligible individual in the State program participates in 

work activities, including a separate section showing the 

number and percentage of the work-eligible individuals 

with zero hours of the participation and the reason for nonparticipation; 

(3) information on the results of improper payments reviews; 

(4) a link to the State plan approved under section 402; and 

(5) information regarding any penalty imposed, or other corrective action taken, by the Secretary against a State for failing 

to achieve a requisite performance level or any other requirement imposed by or under this part. 

(c) ENGAGED IN WORK.— (1) GENERAL RULES.— (A) ALL FAMILIES.—øFor purposes of subsection 

(b)(1)(B)(i), a¿ A recipient is engaged in work for a month 

in a fiscal year if the recipient is participating in work activities for at least the minimum average number of hours 

per week specified in the following table during the 

monthø, not fewer than 20 hours per week of which are attributable to an activity described in paragraph (1), (2), (3), 

(4), (5), (6), (7), (8), or (12) of subsection (d), subject to this 

subsection¿: 

The minimum 

If the month is average number of 

in fiscal year: hours per week is: 

1997 ................................................................................... 20 

1998 ................................................................................... 20 

1999 ................................................................................... 25 

2000 or thereafter ............................................................ 30. 

(B) 2-PARENT FAMILIES.—øFor purposes of subsection 

(b)(2)(B), an¿ An individual is engaged in work for a 

month in a fiscal year if— 

(i) the individual and the other parent in the family 

are participating in work activities for a total of at 

least 35 hours per week during the monthø, not fewer 

than 30 hours per week of which are attributable to 

an activity described in paragraph (1), (2), (3), (4), (5), 

102 

(6), (7), (8), or (12) of subsection (d), subject to this 

subsection¿; and 

(ii) if the family of the individual receives federallyfunded child care assistance and an adult in the family is not disabled or caring for a severely disabled 

child, the individual and the other parent in the family are participating in work activities for a total of at 

least 55 hours per week during the monthø, not fewer 

than 50 hours per week of which are attributable to 

an activity described in paragraph (1), (2), (3), (4), (5), 

(6), (7), (8), or (12) of subsection (d)¿. (2) LIMITATIONS AND SPECIAL RULES.— 

ø(A) NUMBER OF WEEKS FOR WHICH JOB SEARCH COUNTS

AS WORK.— 

ø(i) LIMITATION.—Notwithstanding paragraph (1) of 

this subsection, an individual shall not be considered 

to be engaged in work by virtue of participation in an 

activity described in subsection (d)(6) of 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)), after the individual 

has participated in such an activity for 6 weeks (or, if 

the unemployment rate of the State is at least 50 percent greater than the unemployment rate of the 

United States or the State is a needy State (within the 

meaning of section 403(b)(5)), 12 weeks), or if the participation is for a week that immediately follows 4 consecutive weeks of such participation. 

ø(ii) LIMITED AUTHORITY TO COUNT LESS THAN FULL

WEEK OF PARTICIPATION.—For purposes of clause (i) of 

this subparagraph, on not more than 1 occasion per individual, the State shall consider participation of the 

individual in an activity described in subsection (d)(6) 

for 3 or 4 days during a week as a week of participation in the activity by the individual. 

ø(B)¿ (A) SINGLE PARENT OR RELATIVE WITH CHILD

UNDER AGE 6 DEEMED TO BE MEETING WORK PARTICIPATION

REQUIREMENTS IF PARENT OR RELATIVE IS ENGAGED IN

WORK FOR 20 HOURS PER WEEK.—øFor purposes of determining monthly participation rates under subsection 

(b)(1)(B)(i), a¿ A recipient who is the only parent or caretaker relative in the family of a child who has not attained 

6 years of age is deemed to be engaged in work for a 

month if the recipient is engaged in work for an average 

of at least 20 hours per week during the month. 

ø(C)¿ (B) SINGLE TEEN HEAD OF HOUSEHOLD OR MARRIED

TEEN WHO MAINTAINS SATISFACTORY SCHOOL ATTENDANCE

DEEMED TO BE MEETING WORK PARTICIPATION REQUIREMENTS.—øFor purposes of determining monthly participation rates under subsection (b)(1)(B)(i), a¿ A recipient who 

is married or a head of household and has not attained 20 

years of age is deemed to be engaged in work for a month 

in a fiscal year if the recipient— 

(i) maintains satisfactory attendance at secondary 

school or the equivalent during the month; or 

103 

(ii) participates in education directly related to employment for an average of at least 20 hours per week 

during the month. 

ø(D) LIMITATION ON NUMBER OF PERSONS WHO MAY BE

TREATED AS ENGAGED IN WORK BY REASON OF PARTICIPATION IN EDUCATIONAL ACTIVITIES.—For purposes of determining monthly participation rates under paragraphs 

(1)(B)(i) and (2)(B) of subsection (b), not more than 30 percent of the number of individuals in all families and in 2- 

parent families, respectively, in a State who are treated as 

engaged in work for a month may consist of individuals 

who are determined to be engaged in work for the month 

by reason of participation in vocational educational training, or (if the month is in fiscal year 2000 or thereafter) 

deemed to be engaged in work for the month by reason of 

subparagraph (C) of this paragraph.¿ 

(d) WORK ACTIVITIES DEFINED.—As used in this section, the term 

‘‘work activities’’ means— 

(1) unsubsidized employment; 

(2) subsidized private sector employment; 

(3) subsidized public sector employment; 

(4) work experience (including work associated with the refurbishing of publicly assisted housing) if sufficient private sector employment is not available; 

(5) on-the-job training, including apprenticeship; 

(6) job search and job readiness assistance; 

(7) community service programs; 

(8) vocational educational training ø(not to exceed 12 months 

with respect to any individual)¿, including career technical 

education; 

(9) job skills training directly related to employment; 

(10) education directly related to employment, in the case of 

a recipient who has not received a high school diploma or a 

certificate of high school equivalency; 

(11) satisfactory attendance at secondary school or in a 

course of study leading to a certificate of general equivalence, 

in the case of a recipient who has not completed secondary 

school or received such a certificate; øand¿ 

(12) the provision of child care services to an individual who 

is participating in a community service programø.¿; and 

(13) any other activity that the State determines is necessary 

to improve the employment, earnings, or other outcomes of a recipient of assistance that are used in determining a level of performance by the State for purposes of subsection (a), as described in the State plan approved under section 402. 

(e) PENALTIES AGAINST INDIVIDUALS.— 

(1) IN GENERAL.—Except as provided in paragraph (2), if an 

individual in a family receiving assistance under the State program funded under this part øor any other State program 

funded with qualified State expenditures (as defined in section 

409(a)(7)(B)(i))¿ refuses to engage in work required in accordance with this section, the State shall— 

(A) reduce the amount of assistance otherwise payable to 

the family pro rata (or more, at the option of the State) 

104 

with respect to any period during a month in which the individual so refuses; or 

(B) terminate such assistance, 

subject to such good cause and other exceptions as the State 

may establish. 

(2) EXCEPTION.—Notwithstanding paragraph (1), a State may 

not reduce or terminate assistance under the State program 

funded under this part øor any other State program funded 

with qualified State expenditures (as defined in section 

409(a)(7)(B)(i))¿ based on a refusal of an individual to engage 

in work required in accordance with this section if the individual is a single custodial parent caring for a child who has 

not attained 6 years of age, and the individual proves that the 

individual has a demonstrated inability (as determined by the 

State) to obtain needed child care, for 1 or more of the following reasons: 

(A) Unavailability of appropriate child care within a reasonable distance from the individual’s home or work site. 

(B) Unavailability or unsuitability of informal child care 

by a relative or under other arrangements. 

(C) Unavailability of appropriate and affordable formal 

child care arrangements. 

(f) NONDISPLACEMENT IN WORK ACTIVITIES.— (1) IN GENERAL.—Subject to paragraph (2), an adult in a 

family receiving assistance under a State program funded 

under this part attributable to funds provided by the Federal 

Government may fill a vacant employment position in order to 

engage in a work activity described in subsection (d). 

(2) NO FILLING OF CERTAIN VACANCIES.—No adult in a work 

activity described in subsection (d) which is funded, in whole 

or in part, by funds provided by the Federal Government shall 

be employed or assigned— 

(A) when any other individual is on layoff from the same 

or any substantially equivalent job; or 

(B) 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). 

(3) GRIEVANCE PROCEDURE.—A State with a program funded 

under this part shall establish and maintain a grievance procedure for resolving complaints of alleged violations of paragraph 

(2). 

(4) NO PREEMPTION.—Nothing in this subsection shall preempt or supersede any provision of State or local law that provides greater protection for employees from displacement. 

(g) SENSE OF THE CONGRESS.—It is the sense of the Congress 

that in complying with this section, each State that operates a program funded under this part is encouraged to assign the highest 

priority to requiring adults in 2-parent families and adults in single-parent families that include older preschool or school-age children to be engaged in work activities. 

(h) SENSE OF THE CONGRESS THAT STATES SHOULD IMPOSE CER- TAIN REQUIREMENTS ON NONCUSTODIAL, NONSUPPORTING MINOR

PARENTS.—It is the sense of the Congress that the States should 

require noncustodial, nonsupporting parents who have not attained 

105 

18 years of age to fulfill community work obligations and attend 

appropriate parenting or money management classes after school. 

(i) VERIFICATION OF WORK AND WORK-ELIGIBLE INDIVIDUALS IN

ORDER TO IMPLEMENT REFORMS.— (1) SECRETARIAL DIRECTION AND OVERSIGHT.— (A) REGULATIONS FOR DETERMINING WHETHER ACTIVITIES

MAY BE COUNTED AS ‘‘WORK ACTIVITIES’’, HOW TO COUNT

AND VERIFY REPORTED HOURS OF WORK, AND DETERMINING

WHO IS A WORK-ELIGIBLE INDIVIDUAL.— (i) IN GENERAL.—Not later than June 30, 2006, the 

Secretary shall promulgate regulations to ensure consistent measurement of work participation rates under 

State programs funded under this part and State programs funded with qualified State expenditures (as 

defined in section 409(a)(7)(B)(i)), which shall include 

information with respect to— 

(I) determining whether an activity of a recipient of assistance may be treated as a work activity under subsection (d); 

(II) uniform methods for reporting hours of work 

by a recipient of assistance; 

(III) the type of documentation needed to verify 

reported hours of work by a recipient of assistance; and 

(IV) the circumstances under which a parent 

who resides with a child who is a recipient of assistance should be included in the work participation rates. 

(ii) ISSUANCE OF REGULATIONS ON AN INTERIM FINAL

BASIS.—The regulations referred to in clause (i) may 

be effective and final immediately on an interim basis 

as of the date of publication of the regulations. If the 

Secretary provides for an interim final regulation, the 

Secretary shall provide for a period of public comment 

on the regulation after the date of publication. The 

Secretary may change or revise the regulation after 

the public comment period. 

(B) OVERSIGHT OF STATE PROCEDURES.—The Secretary 

shall review the State procedures established in accordance with paragraph (2) to ensure that such procedures 

are consistent with the regulations promulgated under 

subparagraph (A) and are adequate to ensure an accurate 

measurement of work participation under the State programs funded under this part and any other State programs funded with qualified State expenditures (as so defined). 

(2) REQUIREMENT FOR STATES TO ESTABLISH AND MAINTAIN

WORK PARTICIPATION VERIFICATION PROCEDURES.—Not later 

than September 30, 2006, a State to which a grant is made 

under section 403 shall establish procedures for determining, 

with respect to recipients of assistance under the State program funded under this part or under any State programs 

funded with qualified State expenditures (as so defined), 

whether activities may be counted as work activities, how to 

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106 

eligible individual, in accordance with the regulations promulgated pursuant to paragraph (1)(A)(i) and shall establish internal controls to ensure compliance with the procedures. 

SEC. 408. PROHIBITIONS; REQUIREMENTS. 

(a) IN GENERAL.— (1) NO ASSISTANCE FOR FAMILIES WITHOUT A MINOR CHILD.— A State to which a grant is made under section 403 shall not 

use any part of the grant to provide assistance to a family, unless the family includes a minor child who resides with the 

family (consistent with paragraph (10)) or a pregnant individual. 

(2) REDUCTION OR ELIMINATION OF ASSISTANCE FOR NON- COOPERATION IN ESTABLISHING PATERNITY OR OBTAINING CHILD

SUPPORT.—If the agency responsible for administering the 

State plan approved under part D determines that an individual is not cooperating with the State in establishing paternity or in establishing, modifying, or enforcing a support order 

with respect to a child of the individual, and the individual 

does not qualify for any good cause or other exception established by the State pursuant to section 454(29), then the 

State— 

(A) shall deduct from the assistance that would otherwise be provided to the family of the individual under the 

State program funded under this part an amount equal to 

not less than 25 percent of the amount of such assistance; 

and 

(B) may deny the family any assistance under the State 

program. 

(3) NO ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN

SUPPORT RIGHTS TO THE STATE.—A State to which a grant is 

made under section 403 shall require, as a condition of paying 

assistance to a family under the State program funded under 

this part, that a member of the family assign to the State any 

right the family member may have (on behalf of the family 

member or of any other person for whom the family member 

has applied for or is receiving such assistance) to support from 

any other person, not exceeding the total amount of assistance 

so paid to the family, which accrues during the period that the 

family receives assistance under the program. 

(4) NO ASSISTANCE FOR TEENAGE PARENTS WHO DO NOT AT- TEND HIGH SCHOOL OR OTHER EQUIVALENT TRAINING PROGRAM.—A State to which a grant is made under section 403 

shall not use any part of the grant to provide assistance to an 

individual who has not attained 18 years of age, is not married, has a minor child at least 12 weeks of age in his or her 

care, and has not successfully completed a high-school education (or its equivalent), if the individual does not participate 

in— 

(A) educational activities directed toward the attainment 

of a high school diploma or its equivalent; or 

(B) an alternative educational or training program that 

has been approved by the State. 

(5) NO ASSISTANCE FOR TEENAGE PARENTS NOT LIVING IN

ADULT-SUPERVISED SETTINGS.— 

(A) IN GENERAL.— 

107 

(i) REQUIREMENT.—Except as provided in subparagraph (B), a State to which a grant is made under section 403 shall not use any part of the grant to provide 

assistance to an individual described in clause (ii) of 

this subparagraph if the individual and the minor 

child referred to in clause (ii)(II) do not reside in a 

place of residence maintained by a parent, legal 

guardian, or other adult relative of the individual as 

such parent’s, guardian’s, or adult relative’s own 

home. 

(ii) INDIVIDUAL DESCRIBED.—For purposes of clause 

(i), an individual described in this clause is an individual who— 

(I) has not attained 18 years of age; and 

(II) is not married, and has a minor child in his 

or her care. 

(B) EXCEPTION.— 

(i) PROVISION OF, OR ASSISTANCE IN LOCATING, 

ADULT-SUPERVISED LIVING ARRANGEMENT.—In the case 

of an individual who is described in clause (ii), the 

State agency referred to in section 402(a)(4) shall provide, or assist the individual in locating, a second 

chance home, maternity home, or other appropriate 

adult-supervised supportive living arrangement, taking into consideration the needs and concerns of the 

individual, unless the State agency determines that 

the individual’s current living arrangement is appropriate, and thereafter shall require that the individual 

and the minor child referred to in subparagraph 

(A)(ii)(II) reside in such living arrangement as a condition of the continued receipt of assistance under the 

State program funded under this part attributable to 

funds provided by the Federal Government (or in an 

alternative appropriate arrangement, should circumstances change and the current arrangement cease 

to be appropriate). 

(ii) INDIVIDUAL DESCRIBED.—For purposes of clause 

(i), an individual is described in this clause if the individual is described in subparagraph (A)(ii), and— 

(I) the individual has no parent, legal guardian, 

or other appropriate adult relative described in 

subclause (II) of his or her own who is living or 

whose whereabouts are known; 

(II) no living parent, legal guardian, or other appropriate adult relative, who would otherwise 

meet applicable State criteria to act as the individual’s legal guardian, of such individual allows 

the individual to live in the home of such parent, 

guardian, or relative; 

(III) the State agency determines that— 

(aa) the individual or the minor child referred to in subparagraph (A)(ii)(II) is being 

or has been subjected to serious physical or 

emotional harm, sexual abuse, or exploitation 

108 

in the residence of the individual’s own parent 

or legal guardian; or 

(bb) substantial evidence exists of an act or 

failure to act that presents an imminent or 

serious harm if the individual and the minor 

child lived in the same residence with the individual’s own parent or legal guardian; or 

(IV) the State agency otherwise determines that 

it is in the best interest of the minor child to 

waive the requirement of subparagraph (A) with 

respect to the individual or the minor child. 

(iii) SECOND-CHANCE HOME.—For purposes of this 

subparagraph, the term ‘‘second-chance home’’ means 

an entity that provides individuals described in clause 

(ii) with a supportive and supervised living arrangement in which such individuals are required to learn 

parenting skills, including child development, family 

budgeting, health and nutrition, and other skills to 

promote their long-term economic independence and 

the well-being of their children. 

(6) NO MEDICAL SERVICES.— (A) IN GENERAL.—A State to which a grant is made 

under section 403 shall not use any part of the grant to 

provide medical services. 

(B) EXCEPTION FOR PREPREGNANCY FAMILY PLANNING

SERVICES.—As used in subparagraph (A), the term ‘‘medical services’’ does not include prepregnancy family planning services. 

(7) NO ASSISTANCE FOR MORE THAN 5 YEARS.— 

(A) IN GENERAL.—A State to which a grant is made 

under section 403 shall not use any part of the grant to 

provide assistance to a family that includes an adult who 

has received assistance under any State program funded 

under this part attributable to funds provided by the Federal Government, for 60 months (whether or not consecutive) after the date the State program funded under this 

part commences, subject to this paragraph. 

(B) MINOR CHILD EXCEPTION.—In determining the number of months for which an individual who is a parent or 

pregnant has received assistance under the State program 

funded under this part, the State shall disregard any 

month for which such assistance was provided with respect 

to the individual and during which the individual was— 

(i) a minor child; and 

(ii) not the head of a household or married to the 

head of a household. 

(C) HARDSHIP EXCEPTION.— 

(i) IN GENERAL.—The State may exempt a family 

from the application of subparagraph (A) by reason of 

hardship or if the family includes an individual who 

has been battered or subjected to extreme cruelty. 

(ii) LIMITATION.—The average monthly number of 

families with respect to which an exemption made by 

a State under clause (i) is in effect for a fiscal year 

shall not exceed 20 percent of the average monthly 

109 

number of families to which assistance is provided 

under the State program funded under this part during the fiscal year or the immediately preceding fiscal 

year (but not both), as the State may elect. 

(iii) BATTERED OR SUBJECT TO EXTREME CRUELTY DE- FINED.—For purposes of clause (i), an individual has 

been battered or subjected to extreme cruelty if the individual has been subjected to— 

(I) physical acts that resulted in, or threatened 

to result in, physical injury to the individual; 

(II) sexual abuse; 

(III) sexual activity involving a dependent child; 

(IV) being forced as the caretaker relative of a 

dependent child to engage in nonconsensual sexual acts or activities; 

(V) threats of, or attempts at, physical or sexual 

abuse; 

(VI) mental abuse; or 

(VII) neglect or deprivation of medical care. 

(D) DISREGARD OF MONTHS OF ASSISTANCE RECEIVED BY

ADULT WHILE LIVING IN INDIAN COUNTRY OR AN ALASKAN

NATIVE VILLAGE WITH 50 PERCENT UNEMPLOYMENT.— (i) IN GENERAL.—In determining the number of 

months for which an adult has received assistance 

under a State or tribal program funded under this 

part, the State or tribe shall disregard any month during which the adult lived in Indian country or an Alaskan Native village if the most reliable data available 

with respect to the month (or a period including the 

month) indicate that at least 50 percent of the adults 

living in Indian country or in the village were not employed. 

(ii) INDIAN COUNTRY DEFINED.—As used in clause (i), 

the term ‘‘Indian country’’ has the meaning given such 

term in section 1151 of title 18, United States Code. 

(E) RULE OF INTERPRETATION.—Subparagraph (A) shall 

not be interpreted to require any State to provide assistance to any individual for any period of time under the 

State program funded under this part. 

(F) RULE OF INTERPRETATION.—This part shall not be interpreted to prohibit any State from expending State funds 

not originating with the Federal Government on benefits 

for children or families that have become ineligible for assistance under the State program funded under this part 

by reason of subparagraph (A). 

ø(G) INAPPLICABILITY TO WELFARE-TO-WORK GRANTS AND

ASSISTANCE.—For purposes of subparagraph (A) of this 

paragraph, a grant made under section 403(a)(5) shall not 

be considered a grant made under section 403, and 

noncash assistance from funds provided under section 

403(a)(5) shall not be considered assistance.¿ 

(8) DENIAL OF ASSISTANCE FOR 10 YEARS TO A PERSON FOUND

TO HAVE FRAUDULENTLY MISREPRESENTED RESIDENCE IN ORDER

TO OBTAIN ASSISTANCE IN 2 OR MORE STATES.—A State to which 

a grant is made under section 403 shall not use any part of the 

110 

grant to provide cash assistance to an individual during the 

10-year period that begins on the date the individual is convicted in Federal or State court of having made a fraudulent 

statement or representation with respect to the place of residence of the individual in order to receive assistance simultaneously from 2 or more States under programs that are funded 

under this title, title XIX, or the Food and Nutrition Act of 

2008, or benefits in 2 or more States under the supplemental 

security income program under title XVI. The preceding sentence shall not apply with respect to a conviction of an individual, for any month beginning after the President of the 

United States grants a pardon with respect to the conduct 

which was the subject of the conviction. 

(9) DENIAL OF ASSISTANCE FOR FUGITIVE FELONS AND PROBATION AND PAROLE VIOLATORS.— 

(A) IN GENERAL.—A State to which a grant is made 

under section 403 shall not use any part of the grant to 

provide assistance to any individual who is— 

(i) fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from 

which the individual flees, for a crime, or an attempt 

to commit a crime, which is a felony under the laws 

of the place from which the individual flees, or which, 

in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or 

(ii) violating a condition of probation or parole imposed under Federal or State law. 

The preceding sentence shall not apply with respect to conduct of an individual, for any month beginning after the 

President of the United States grants a pardon with respect to the conduct. 

(B) EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT

AGENCIES.—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 a Federal, State, or 

local law enforcement officer, upon the request of the officer, with the current address of any recipient if the officer 

furnishes the agency with the name of the recipient and 

notifies the agency that— 

(i) the recipient— 

(I) is described in subparagraph (A); or 

(II) has information that is necessary for the officer to conduct the official duties of the officer; 

and 

(ii) the location or apprehension of the recipient is 

within such official duties. 

(10) DENIAL OF ASSISTANCE FOR MINOR CHILDREN WHO ARE

ABSENT FROM THE HOME FOR A SIGNIFICANT PERIOD.— (A) IN GENERAL.—A State to which a grant is made 

under section 403 shall not use any part of the grant to 

provide assistance for a minor child who has been, or is expected by a parent (or other caretaker relative) of the child 

111 

to be, absent from the home for a period of 45 consecutive 

days or, at the option of the State, such period of not less 

than 30 and not more than 180 consecutive days as the 

State may provide for in the State plan submitted pursuant to section 402. 

(B) STATE AUTHORITY TO ESTABLISH GOOD CAUSE EXCEP- TIONS.—The State may establish such good cause exceptions to subparagraph (A) as the State considers appropriate if such exceptions are provided for in the State plan 

submitted pursuant to section 402. 

(C) DENIAL OF ASSISTANCE FOR RELATIVE WHO FAILS TO

NOTIFY STATE AGENCY OF ABSENCE OF CHILD.—A State to 

which a grant is made under section 403 shall not use any 

part of the grant to provide assistance for an individual 

who is a parent (or other caretaker relative) of a minor 

child and who fails to notify the agency administering the 

State program funded under this part of the absence of the 

minor child from the home for the period specified in or 

provided for pursuant to subparagraph (A), by the end of 

the 5-day period that begins with the date that it becomes 

clear to the parent (or relative) that the minor child will 

be absent for such period so specified or provided for. 

(11) MEDICAL ASSISTANCE REQUIRED TO BE PROVIDED FOR

CERTAIN FAMILIES HAVING EARNINGS FROM EMPLOYMENT OR

CHILD SUPPORT.— (A) EARNINGS FROM EMPLOYMENT.—A State to which a 

grant is made under section 403 and which has a State 

plan approved under title XIX shall provide that in the 

case of a family that is treated (under section 1931(b)(1)(A) 

for purposes of title XIX) as receiving aid under a State 

plan approved under this part (as in effect on July 16, 

1996), that would become ineligible for such aid because of 

hours of or income from employment of the caretaker relative (as defined under this part as in effect on such date) 

or because of section 402(a)(8)(B)(ii)(II) (as so in effect), 

and that was so treated as receiving such aid in at least 

3 of the 6 months immediately preceding the month in 

which such ineligibility begins, the family shall remain eligible for medical assistance under the State’s plan approved under title XIX for an extended period or periods 

as provided in section 1925 or 1902(e)(1) (as applicable), 

and that the family will be appropriately notified of such 

extension as required by section 1925(a)(2). 

(B) CHILD SUPPORT.—A State to which a grant is made 

under section 403 and which has a State plan approved 

under title XIX shall provide that in the case of a family 

that is treated (under section 1931(b)(1)(A) for purposes of 

title XIX) as receiving aid under a State plan approved 

under this part (as in effect on July 16, 1996), that would 

become ineligible for such aid as a result (wholly or partly) 

of the collection of child or spousal support under part D 

and that was so treated as receiving such aid in at least 

3 of the 6 months immediately preceding the month in 

which such ineligibility begins, the family shall remain eligible for medical assistance under the State’s plan apVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00111 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
112 

proved under title XIX for an extended period or periods 

as provided in section 1931(c)(1). 

(12) STATE REQUIREMENT TO PREVENT UNAUTHORIZED SPENDING OF BENEFITS.— 

(A) IN GENERAL.—A State to which a grant is made 

under section 403 shall maintain policies and practices as 

necessary to prevent assistance provided under the State 

program funded under this part from being used in any 

electronic benefit transfer transaction in— 

(i) any liquor store; 

(ii) any casino, gambling casino, or gaming establishment; øor¿ 

(iii) any retail establishment which provides adultoriented entertainment in which performers disrobe or 

perform in an unclothed state for entertainmentø.¿; or 

(iv) any establishment that offers marihuana (as defined in section 102(16) of the Controlled Substances 

Act) for sale. 

(B) DEFINITIONS.—For purposes of subparagraph (A)— 

(i) LIQUOR STORE.—The term ‘‘liquor store’’ means 

any retail establishment which sells exclusively or primarily intoxicating liquor. Such term does not include 

a grocery store which sells both intoxicating liquor and 

groceries including staple foods (within the meaning of 

section 3(r) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2012(r))). 

(ii) CASINO, GAMBLING CASINO, OR GAMING ESTABLISHMENT.—The terms ‘‘casino’’, ‘‘gambling casino’’, 

and ‘‘gaming establishment’’ do not include— 

(I) a grocery store which sells groceries including such staple foods and which also offers, or is 

located within the same building or complex as, 

casino, gambling, or gaming activities; or 

(II) any other establishment that offers casino, 

gambling, or gaming activities incidental to the 

principal purpose of the business. 

(iii) ELECTRONIC BENEFIT TRANSFER TRANSACTION.— 

The term ‘‘electronic benefit transfer transaction’’ 

means the use of a credit or debit card service, automated teller machine, point-of-sale terminal, or access 

to an online system for the withdrawal of funds or the 

processing of a payment for merchandise or a service. 

(13) REQUIREMENT THAT STATES RESERVE 25 PERCENT OF

JOBS GRANT FOR SPENDING ON CORE ACTIVITIES.—A State to 

which a grant is made under section 403(a)(1) for a fiscal year 

shall expend not less than 25 percent of the grant on assistance, 

case management, work supports and supportive services, work, 

wage subsidies, work activities (as defined in section 407(d)), 

and non-recurring short-term benefits. 

(14) REQUIREMENT THAT AT LEAST 25 PERCENT OF QUALIFIED

STATE EXPENDITURES BE FOR CORE ACTIVITIES.—Not less than 

25 percent of the qualified State expenditures (as defined in section 409(a)(7)(B)(i)) of a State during the fiscal year shall be for 

assistance, case management, work supports and supportive 

113 

services, work, wage subsidies, work activities (as defined in 

section 407(d)), and non-recurring short-term benefits. 

(15) PHASE-OUT OF COUNTING OF THIRD-PARTY CONTRIBU- TIONS AS QUALIFIED STATE EXPENDITURES.— (A) IN GENERAL.—The qualified State expenditures (as 

defined in section 409(a)(7)(B)(i)) of a State for a fiscal year 

that are attributable to the value of goods and services provided by a source other than a State or local government 

shall not exceed the applicable percentage of the expenditures for the fiscal year. 

(B) APPLICABLE PERCENTAGE.—In subparagraph (A), the 

term ‘‘applicable percentage’’ means, with respect to a fiscal 

year— 

(i) 75 percent, in the case of fiscal year 2020; 

(ii) 50 percent, in the case of fiscal year 2021; 

(iii) 25 percent, in the case of fiscal year 2022; and 

(iv) 0 percent, in the case of fiscal year 2023 or any 

succeeding fiscal year. 

(16) NON-SUPPLANTATION REQUIREMENT.—Funds made available to a State under this part shall be used to supplement, not 

supplant, State general revenue spending on activities described 

in section 404. 

ø(b) INDIVIDUAL RESPONSIBILITY PLANS.— ø(1) ASSESSMENT.—The State agency responsible for administering the State program funded under this part shall make 

an initial assessment of the skills, prior work experience, and 

employability of each recipient of assistance under the program 

who— 

ø(A) has attained 18 years of age; or 

ø(B) has not completed high school or obtained a certificate of high school equivalency, and is not attending secondary school. 

ø(2) CONTENTS OF PLANS.— ø(A) IN GENERAL.—On the basis of the assessment made 

under subsection (a) with respect to an individual, the 

State agency, in consultation with the individual, may develop an individual responsibility plan for the individual, 

which— 

ø(i) sets forth an employment goal for the individual 

and a plan for moving the individual immediately into 

private sector employment; 

ø(ii) sets forth the obligations of the individual, 

which may include a requirement that the individual 

attend school, maintain certain grades and attendance, keep school age children of the individual in 

school, immunize children, attend parenting and 

money management classes, or do other things that 

will help the individual become and remain employed 

in the private sector; 

ø(iii) to the greatest extent possible is designed to 

move the individual into whatever private sector employment the individual is capable of handling as 

quickly as possible, and to increase the responsibility 

and amount of work the individual is to handle over 

time; 

114 

ø(iv) describes the services the State will provide the 

individual so that the individual will be able to obtain 

and keep employment in the private sector, and describe the job counseling and other services that will 

be provided by the State; and 

ø(v) may require the individual to undergo appropriate substance abuse treatment. 

ø(B) TIMING.—The State agency may comply with paragraph (1) with respect to an individual— 

ø(i) within 90 days (or, at the option of the State, 

180 days) after the effective date of this part, in the 

case of an individual who, as of such effective date, is 

a recipient of aid under the State plan approved under 

part A (as in effect immediately before such effective 

date); or 

ø(ii) within 30 days (or, at the option of the State, 

90 days) after the individual is determined to be eligible for such assistance, in the case of any other individual. 

ø(3) PENALTY FOR NONCOMPLIANCE BY INDIVIDUAL.—In addition to any other penalties required under the State program 

funded under this part, the State may reduce, by such amount 

as the State considers appropriate, the amount of assistance 

otherwise payable under the State program to a family that includes an individual who fails without good cause to comply 

with an individual responsibility plan signed by the individual. 

ø(4) STATE DISCRETION.—The exercise of the authority of this 

subsection shall be within the sole discretion of the State.¿ 

(b) INDIVIDUAL OPPORTUNITY PLANS.— 

(1) ASSESSMENT.—The State agency responsible for administering the State program funded under this part shall make 

an initial assessment of the following for each work-eligible individual (as defined in the regulations promulgated pursuant to 

section 407(i)(1)(A)(i)): 

(A) The education obtained, skills, prior work experience, 

work readiness, and barriers to work of the individual. 

(B) The well-being of the children in the family of the individual and, where appropriate, activities or services (such 

as services offered by a program funded under section 511) 

to improve the well-being of the children. 

(2) CONTENTS OF PLANS.—On the basis of the assessment required by paragraph (1) of this subsection, the State agency, in 

consultation with the individual, shall develop an individual 

opportunity plan that— 

(A) includes a personal responsibility agreement in which 

the individual acknowledges receipt of publicly-funded benefits and responsibility to comply with program requirements in order to receive the benefits; 

(B) sets forth the obligations of the individual to participate in work activities (as defined in section 407(d)), and 

the number of hours per month for which the individual 

will so participate pursuant to section 407; 

(C) sets forth an employment goal and planned short-, intermediate-, and long-term actions to achieve the goal, and, 

in the case of an individual who has not attained 24 years 

115 

of age and is in secondary school or the equivalent, the intermediate action may be completion of secondary school or 

the equivalent; 

(D) describes the job counseling and other services the 

State will provide to the individual to enable the individual 

to obtain and keep employment in the private sector; 

(E) may include referral to appropriate substance abuse 

or mental health treatment; and 

(F) is signed by the individual. 

(3) TIMING.—The State agency shall comply with paragraph 

(1) and (2) with respect to a work-eligible individual— 

(A) within 180 days after the effective date of this subsection, in the case of an individual who, as of such effective date, is a recipient of assistance under the State program funded under this part (as in effect immediately before such effective date); or 

(B) within 60 days after the individual is determined to 

be eligible for the assistance, in the case of any other individual. 

(4) PENALTY FOR NONCOMPLIANCE BY INDIVIDUAL.—In addition to any other penalties required under the State program 

funded under this part, the State may reduce, by such amount 

as the State considers appropriate, the amount of assistance 

otherwise payable under the State program to a family that includes an individual who fails without good cause to comply 

with an individual opportunity plan developed pursuant to this 

subsection, that is signed by the individual. 

(5) PERIODIC REVIEW.—The State shall meet with each workeligible individual assessed by the State under paragraph (1), 

not less frequently than every 90 days, to— 

(A) review the individual opportunity plan developed for 

the individual; 

(B) discuss with the individual the progress made by the 

individual in achieving the goals specified in the plan; and 

(C) update the plan, as necessary, to reflect any changes 

in the circumstances of the individual since the plan was 

last reviewed. 

(c) SANCTIONS AGAINST RECIPIENTS NOT CONSIDERED WAGE REDUCTIONS.—A penalty imposed by a State against the family of an 

individual by reason of the failure of the individual to comply with 

a requirement under the State program funded under this part 

shall not be construed to be a reduction in any wage paid to the 

individual. 

(d) NONDISCRIMINATION PROVISIONS.—The following provisions of 

law shall apply to any program or activity which receives funds 

provided under this part: 

(1) The Age Discrimination Act of 1975 (42 U.S.C. 6101 et 

seq.). 

(2) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 

794). 

(3) The Americans with Disabilities Act of 1990 (42 U.S.C. 

12101 et seq.). 

(4) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d 

et seq.). 

116 

(e) SPECIAL RULES RELATING TO TREATMENT OF CERTAIN

ALIENS.—For special rules relating to the treatment of certain 

aliens, see title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. 

(f) SPECIAL RULES RELATING TO THE TREATMENT OF NON-213A 

ALIENS.—The following rules shall apply if a State elects to take 

the income or resources of any sponsor of a non-213A alien into account in determining whether the alien is eligible for assistance 

under the State program funded under this part, or in determining 

the amount or types of such assistance to be provided to the alien: 

(1) DEEMING OF SPONSOR’S INCOME AND RESOURCES.—For a 

period of 3 years after a non-213A alien enters the United 

States: 

(A) INCOME DEEMING RULE.—The income of any sponsor 

of the alien and of any spouse of the sponsor is deemed to 

be income of the alien, to the extent that the total amount 

of the income exceeds the sum of— 

(i) the lesser of— 

(I) 20 percent of the total of any amounts received by the sponsor or any such spouse in the 

month as wages or salary or as net earnings from 

self-employment, plus the full amount of any costs 

incurred by the sponsor and any such spouse in 

producing self-employment income in such month; 

or 

(II) $175; 

(ii) the cash needs standard established by the State 

for purposes of determining eligibility for assistance 

under the State program funded under this part for a 

family of the same size and composition as the sponsor 

and any other individuals living in the same household as the sponsor who are claimed by the sponsor as 

dependents for purposes of determining the sponsor’s 

Federal personal income tax liability but whose needs 

are not taken into account in determining whether the 

sponsor’s family has met the cash needs standard; 

(iii) any amounts paid by the sponsor or any such 

spouse to individuals not living in the household who 

are claimed by the sponsor as dependents for purposes 

of determining the sponsor’s Federal personal income 

tax liability; and 

(iv) any payments of alimony or child support with 

respect to individuals not living in the household. 

(B) RESOURCE DEEMING RULE.—The resources of a sponsor of the alien and of any spouse of the sponsor are 

deemed to be resources of the alien to the extent that the 

aggregate value of the resources exceeds $1,500. 

(C) SPONSORS OF MULTIPLE NON-213A ALIENS.—If a person is a sponsor of 2 or more non-213A aliens who are living in the same home, the income and resources of the 

sponsor and any spouse of the sponsor that would be 

deemed income and resources of any such alien under subparagraph (A) shall be divided into a number of equal 

shares equal to the number of such aliens, and the State 

117 

shall deem the income and resources of each such alien to 

include 1 such share. 

(2) INELIGIBILITY OF NON-213A ALIENS SPONSORED BY AGEN- CIES; EXCEPTION.—A non-213A alien whose sponsor is or was 

a public or private agency shall be ineligible for assistance 

under a State program funded under this part, during a period 

of 3 years after the alien enters the United States, unless the 

State agency administering the program determines that the 

sponsor either no longer exists or has become unable to meet 

the alien’s needs. 

(3) INFORMATION PROVISIONS.— (A) DUTIES OF NON-213A ALIENS.—A non-213A alien, as a 

condition of eligibility for assistance under a State program funded under this part during the period of 3 years 

after the alien enters the United States, shall be required 

to provide to the State agency administering the program— 

(i) such information and documentation with respect 

to the alien’s sponsor as may be necessary in order for 

the State agency to make any determination required 

under this subsection, and to obtain any cooperation 

from the sponsor necessary for any such determination; and 

(ii) such information and documentation as the 

State agency may request and which the alien or the 

alien’s sponsor provided in support of the alien’s immigration application. 

(B) DUTIES OF FEDERAL AGENCIES.—The Secretary shall 

enter into agreements with the Secretary of State and the 

Attorney General under which any information available 

to them and required in order to make any determination 

under this subsection will be provided by them to the Secretary (who may, in turn, make the information available, 

upon request, to a concerned State agency). 

(4) NON-213A ALIEN DEFINED.—An alien is a non-213A alien 

for purposes of this subsection if the affidavit of support or 

similar agreement with respect to the alien that was executed 

by the sponsor of the alien’s entry into the United States was 

executed other than pursuant to section 213A of the Immigration and Nationality Act. 

(5) INAPPLICABILITY TO ALIEN MINOR SPONSORED BY A PARENT.—This subsection shall not apply to an alien who is a 

minor child if the sponsor of the alien or any spouse of the 

sponsor is a parent of the alien. 

(6) INAPPLICABILITY TO CERTAIN CATEGORIES OF ALIENS.— 

This subsection shall not apply to an alien who is— 

(A) admitted to the United States as a refugee under 

section 207 of the Immigration and Nationality Act; 

(B) paroled into the United States under section 

212(d)(5) of such Act for a period of at least 1 year; or 

(C) granted political asylum by the Attorney General 

under section 208 of such Act. 

(g) STATE REQUIRED TO PROVIDE CERTAIN INFORMATION.—Each 

State to which a grant is made under section 403 shall, at least 4 

times annually and upon request of the Immigration and NatuVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00117 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
118 

ralization Service, furnish the Immigration and Naturalization 

Service with the name and address of, and other identifying information on, any individual who the State knows is not lawfully 

present in the United States. 

SEC. 409. PENALTIES. 

(a) IN GENERAL.—Subject to this section: 

(1) USE OF GRANT IN VIOLATION OF THIS PART.— 

(A) GENERAL PENALTY.—If an audit conducted under 

chapter 75 of title 31, United States Code, finds that an 

amount paid to a State under section 403 for a fiscal year 

has been used in violation of this part, the Secretary shall 

reduce the grant payable to the State under section 

403(a)(1) for the immediately succeeding fiscal year quarter by the amount so used. 

(B) ENHANCED PENALTY FOR INTENTIONAL VIOLATIONS.— 

If the State does not prove to the satisfaction of the Secretary that the State did not intend to use the amount in 

violation of this part, the Secretary shall further reduce 

the grant payable to the State under section 403(a)(1) for 

the immediately succeeding fiscal year quarter by an 

amount equal to 5 percent of the State family assistance 

grant. 

ø(C) PENALTY FOR MISUSE OF COMPETITIVE WELFARE-TOWORK FUNDS.—If the Secretary of Labor finds that an 

amount paid to an entity under section 403(a)(5)(B) has 

been used in violation of subparagraph (B) or (C) of section 

403(a)(5), the entity shall remit to the Secretary of Labor 

an amount equal to the amount so used.¿ 

(2) FAILURE TO SUBMIT REQUIRED QUARTERLY REPORT.— 

ø(A) QUARTERLY REPORTS.—¿ 

ø(i)¿ (A) IN GENERAL.—If the Secretary determines that 

a State has not, within 45 days after the end of a fiscal 

quarter, submitted the report required by section 411(a) 

for the quarter, the Secretary shall reduce the grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to 4 percent of the State family assistance grant. 

ø(ii)¿ (B) RESCISSION OF PENALTY.—The Secretary shall 

rescind a penalty imposed on a State under øclause (i)¿ 

subparagraph (A) with respect to a report if the State submits the report before the end of the fiscal quarter that immediately succeeds the fiscal quarter for which the report 

was required. 

ø(B) REPORT ON ENGAGEMENT IN ADDITIONAL WORK ACTIVITIES AND EXPENDITURES FOR OTHER BENEFITS AND

SERVICES.— 

ø(i) IN GENERAL.—If the Secretary determines that a 

State has not submitted the report required by section 

411(c)(1)(A)(i) by May 31, 2011, or the report required 

by section 411(c)(1)(A)(ii) by August 31, 2011, the Secretary shall reduce the grant payable to the State 

under section 403(a)(1) for the immediately succeeding 

fiscal year by an amount equal to not more than 4 percent of the State family assistance grant. 

119 

ø(ii) RESCISSION OF PENALTY.—The Secretary shall 

rescind a penalty imposed on a State under clause (i) 

with respect to a report required by section 

411(c)(1)(A) if the State submits the report not later 

than— 

ø(I) in the case of the report required under section 411(c)(1)(A)(i), June 15, 2011; and 

ø(II) in the case of the report required under 

section 411(c)(1)(A)(ii), September 15, 2011. 

ø(iii) PENALTY BASED ON SEVERITY OF FAILURE.—The 

Secretary shall impose a reduction under clause (i) 

with respect to a fiscal year based on the degree of 

noncompliance.¿ 

(3) FAILURE TO SATISFY MINIMUM PARTICIPATION RATES.— 

(A) IN GENERAL.—If the Secretary determines that a 

State to which a grant is made under section 403 for a fiscal year has failed to comply with section 407(a) for the fiscal year, the Secretary shall reduce the grant payable to 

the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to the applicable 

percentage of the State family assistance grant. 

(B) APPLICABLE PERCENTAGE DEFINED.—As used in subparagraph (A), the term ‘‘applicable percentage’’ means, 

with respect to a State— 

(i) if a penalty was not imposed on the State under 

subparagraph (A) for the immediately preceding fiscal 

year, 5 percent; or 

(ii) if a penalty was imposed on the State under subparagraph (A) for the immediately preceding fiscal 

year, the lesser of— 

(I) the percentage by which the grant payable to 

the State under section 403(a)(1) was reduced for 

such preceding fiscal year, increased by 2 percentage points; or 

(II) 21 percent. 

(C) PENALTY BASED ON SEVERITY OF FAILURE.—The Secretary shall impose reductions under subparagraph (A) 

with respect to a fiscal year based on the degree of noncompliance, and may reduce the penalty if the noncompliance is due to circumstances that caused the State to become a needy State ø(as defined in section 403(b)(5))¿ during the fiscal year or if the noncompliance is due to extraordinary circumstances such as a natural disaster or regional recession. The Secretary shall provide a written report to Congress to justify any waiver or penalty reduction 

due to such extraordinary circumstances. 

ø(5)¿ (D) NEEDY STATE.—For purposes of øparagraph 

(4)¿ subparagraph (C), a State is a needy State for a 

month if— 

ø(A)¿ (i) the average rate of— 

ø(i)¿ (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 

120 

ø(ii)¿ (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 

ø(B)¿ (ii) 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— 

ø(i)¿ (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 

ø(ii)¿ (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. 

(4) FAILURE TO PARTICIPATE IN THE INCOME AND ELIGIBILITY

VERIFICATION SYSTEM.—If the Secretary determines that a 

State program funded under this part is not participating during a fiscal year in the income and eligibility verification system required by section 1137, the Secretary shall reduce the 

grant payable to the State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not 

more than 2 percent of the State family assistance grant. 

(5) FAILURE TO COMPLY WITH PATERNITY ESTABLISHMENT AND

CHILD SUPPORT ENFORCEMENT REQUIREMENTS UNDER PART D.— 

Notwithstanding any other provision of this Act, if the Secretary determines that the State agency that administers a 

program funded under this part does not enforce the penalties 

requested by the agency administering part D against recipients of assistance under the State program who fail to cooperate in establishing paternity or in establishing, modifying, or 

enforcing a child support order in accordance with such part 

and who do not qualify for any good cause or other exception 

established by the State under section 454(29), the Secretary 

shall reduce the grant payable to the State under section 

403(a)(1) for the immediately succeeding fiscal year (without 

regard to this section) by not more than 5 percent. 

121 

ø(6) FAILURE TO TIMELY REPAY A FEDERAL LOAN FUND FOR

STATE WELFARE PROGRAMS.—If the Secretary determines that a 

State has failed to repay any amount borrowed from the Federal Loan Fund for State Welfare Programs established under 

section 406 within the period of maturity applicable to the 

loan, plus any interest owed on the loan, the Secretary shall 

reduce the grant payable to the State under section 403(a)(1) 

for the immediately succeeding fiscal year quarter (without regard to this section) by the outstanding loan amount, plus the 

interest owed on the outstanding amount. The Secretary shall 

not forgive any outstanding loan amount or interest owed on 

the outstanding amount. 

ø(7)¿ (6) FAILURE OF ANY STATE TO MAINTAIN CERTAIN LEVEL

OF HISTORIC EFFORT.— 

(A) IN GENERAL.—The Secretary shall reduce the grant 

payable to the State under section 403(a)(1) for a fiscal 

year by the amount (if any) by which qualified State expenditures for the then immediately preceding fiscal year 

are less than the applicable percentage of historic State expenditures with respect to such preceding fiscal year. 

(B) DEFINITIONS.—As used in this paragraph: 

(i) QUALIFIED STATE EXPENDITURES.— 

(I) IN GENERAL.—The term ‘‘qualified State expenditures’’ means, with respect to a State and a 

fiscal year, the total expenditures by the State 

during the fiscal year, under øall State programs¿ 

the State program funded under this part, for any 

of the following with respect to eligible families: 

(aa) Cash assistance, including any amount 

collected by the State as support pursuant to 

a plan approved under part D, on behalf of a 

family receiving assistance under the State 

program funded under this part, that is distributed to the family under section 

457(a)(1)(B) and disregarded in determining 

the eligibility of the family for, and the 

amount of, such assistance. 

(bb) Child care assistance. 

(cc) Educational activities designed to increase self-sufficiency, job training, and work, 

excluding any expenditure for public education in the State except expenditures which 

involve the provision of services or assistance 

to a member of an eligible family which is not 

generally available to persons who are not 

members of an eligible family. 

(dd) Expenditures for a purpose described in 

paragraph (3) or (4) of section 401(a). 

ø(dd)¿ (ee) Administrative costs in connection with the matters described in items (aa), 

(bb), (cc), øand (ee)¿ (dd), and (ff), but only to 

the extent that such costs do not exceed 15 

percent of the total amount of qualified State 

expenditures for the fiscal year. 

122 

ø(ee)¿ (ff) Any other use of funds allowable 

under section 404(a)(1). 

(II) EXCLUSION OF TRANSFERS FROM OTHER

STATE AND LOCAL PROGRAMS.—Such term does not 

include expenditures under any State or local program during a fiscal year, except to the extent 

that— 

(aa) the expenditures exceed the amount expended under the State or local program in 

the fiscal year most recently ending before the 

date of the enactment of this section (as in effect just before the effective date of the Jobs 

and Opportunity with Benefits and Services 

for Success Act); or 

(bb) the State is entitled to a payment 

under former section 403 (as in effect immediately before such date of enactment) with 

respect to the expenditures. 

(III) EXCLUSION OF AMOUNTS EXPENDED TO REPLACE PENALTY GRANT REDUCTIONS.—Such term 

does not include any amount expended in order to 

comply with paragraph ø(12)¿ (10). 

(IV) ELIGIBLE FAMILIES.—As used in subclause 

(I), the term ‘‘eligible families’’ means families eligible for assistance under the State program funded under this part, families that would be eligible 

for such assistance but for the application of section 408(a)(7) of this Act, and families of aliens 

lawfully present in the United States that would 

be eligible for such assistance but for the application of title IV of the Personal Responsibility and 

Work Opportunity Reconciliation Act of 1996, except any of such families whose monthly income 

exceeds twice 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))). 

ø(V) COUNTING OF SPENDING ON CERTAIN PRO- FAMILY ACTIVITIES.—The term ‘‘qualified State expenditures’’ includes the total expenditures by the 

State during the fiscal year under all State programs for a purpose described in paragraph (3) or 

(4) of section 401(a).¿ 

(ii) APPLICABLE PERCENTAGE.—The term ‘‘applicable 

percentage’’ means 80 percent (or, if the State meets 

the requirements of section 407(a), 75 percent). 

(iii) HISTORIC STATE EXPENDITURES.—The term ‘‘historic State expenditures’’ means, with respect to a 

State, the lesser of— 

(I) the expenditures by the State under parts A 

and F (as in effect during fiscal year 1994) for fiscal year 1994; or 

(II) the amount which bears the same ratio to 

the amount described in subclause (I) as— 

123 

(aa) the State family assistance grant, plus 

the total amount required to be paid to the 

State under former section 403 for fiscal year 

1994 with respect to amounts expended by 

the State for child care under subsection (g) 

or (i) of section 402 (as in effect during fiscal 

year 1994); bears to 

(bb) 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. 

Such term does not include any expenditures under 

the State plan approved under part A (as so in effect) 

on behalf of individuals covered by a tribal family assistance plan approved under section 412, as determined by the Secretary. 

(iv) EXPENDITURES BY THE STATE.—The term ‘‘expenditures by the State’’ does not include— 

(I) any expenditure from amounts made available by the Federal Government; 

(II) any State funds expended for the medicaid 

program under title XIX; or 

ø(III) any State funds which are used to match 

Federal funds provided under section 403(a)(5); or 

ø(IV)¿ (III) any State funds which are expended 

as a condition of receiving Federal funds other 

than under this part. 

Notwithstanding subclause (IV) of the preceding sentence, such term includes expenditures by a State for 

child care in a fiscal year to the extent that the total 

amount of the expenditures does not exceed the 

amount of State expenditures in fiscal year 1994 or 

1995 (whichever is the greater) that equal the nonFederal share for the programs described in section 

418(a)(1)(A). 

(v) SOURCE OF DATA.—In determining expenditures 

by a State for fiscal years 1994 and 1995, the Secretary shall use information which was reported by 

the State on ACF Form 231 or (in the case of expenditures under part F) ACF Form 331, available as of the 

dates specified in clauses (ii) and (iii) of section 

403(a)(1)(D). 

ø(8)¿ (7) NONCOMPLIANCE OF STATE CHILD SUPPORT ENFORCEMENT PROGRAM WITH REQUIREMENTS OF PART D.— 

(A) IN GENERAL.—If the Secretary finds, with respect to 

a State’s program under part D, in a fiscal year beginning 

on or after October 1, 1997— 

(i)(I) on the basis of data submitted by a State pursuant to section 454(15)(B), or on the basis of the results of a review conducted under section 452(a)(4), 

that the State program failed to achieve the paternity 

establishment percentages (as defined in section 

452(g)(2)), or to meet other performance measures that 

may be established by the Secretary; 

124 

(II) on the basis of the results of an audit or audits 

conducted under section 452(a)(4)(C)(i) that the State 

data submitted pursuant to section 454(15)(B) is incomplete or unreliable; or 

(III) on the basis of the results of an audit or audits 

conducted under section 452(a)(4)(C) that a State 

failed to substantially comply with 1 or more of the requirements of part D (other than paragraph (24), or 

subparagraph (A) or (B)(i) of paragraph (27), of section 

454); and 

(ii) that, with respect to the succeeding fiscal year— 

(I) the State failed to take sufficient corrective 

action to achieve the appropriate performance levels or compliance as described in subparagraph 

(A)(i); or 

(II) the data submitted by the State pursuant to 

section 454(15)(B) is incomplete or unreliable; 

the amounts otherwise payable to the State under this 

part for quarters following the end of such succeeding fiscal year, prior to quarters following the end of the first 

quarter throughout which the State program has achieved 

the paternity establishment percentages or other performance measures as described in subparagraph (A)(i)(I), or is 

in substantial compliance with 1 or more of the requirements of part D as described in subparagraph (A)(i)(III), as 

appropriate, shall be reduced by the percentage specified 

in subparagraph (B). 

(B) AMOUNT OF REDUCTIONS.—The reductions required 

under subparagraph (A) shall be— 

(i) not less than 1 nor more than 2 percent; 

(ii) not less than 2 nor more than 3 percent, if the 

finding is the 2nd consecutive finding made pursuant 

to subparagraph (A); or 

(iii) not less than 3 nor more than 5 percent, if the 

finding is the 3rd or a subsequent consecutive such 

finding. 

(C) DISREGARD OF NONCOMPLIANCE WHICH IS OF A TECH- NICAL NATURE.—For purposes of this section and section 

452(a)(4), a State determined as a result of an audit— 

(i) to have failed to have substantially complied with 

1 or more of the requirements of part D shall be determined to have achieved substantial compliance only if 

the Secretary determines that the extent of the noncompliance is of a technical nature which does not adversely affect the performance of the State’s program 

under part D; or 

(ii) to have submitted incomplete or unreliable data 

pursuant to section 454(15)(B) shall be determined to 

have submitted adequate data only if the Secretary 

determines that the extent of the incompleteness or 

unreliability of the data is of a technical nature which 

does not adversely affect the determination of the level 

of the State’s paternity establishment percentages (as 

defined under section 452(g)(2)) or other performance 

measures that may be established by the Secretary. 

125 

ø(9)¿ (8) FAILURE TO COMPLY WITH 5-YEAR LIMIT ON ASSIST- ANCE.—If the Secretary determines that a State has not complied with section 408(a)(7) during a fiscal year, the Secretary 

shall reduce the grant payable to the State under section 

403(a)(1) for the immediately succeeding fiscal year by an 

amount equal to 5 percent of the State family assistance grant. 

ø(10) FAILURE OF STATE RECEIVING AMOUNTS FROM CONTIN- GENCY FUND TO MAINTAIN 100 PERCENT OF HISTORIC EFFORT.— If, at the end of any fiscal year during which amounts from the 

Contingency Fund for State Welfare Programs have been paid 

to a State, the Secretary finds that the qualified State expenditures (as defined in paragraph (7)(B)(i) (other than the expenditures described in subclause (I)(bb) of that paragraph)) under 

the State program funded under this part for the fiscal year 

are less than 100 percent of historic State expenditures (as defined in paragraph (7)(B)(iii) of this subsection), 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, the Secretary shall reduce the grant payable 

to the State under section 403(a)(1) for the immediately succeeding fiscal year by the total of the amounts so paid to the 

State that the State has not remitted under section 403(b)(6). 

ø(11)¿ (9) FAILURE TO MAINTAIN ASSISTANCE TO ADULT SIN- GLE CUSTODIAL PARENT WHO CANNOT OBTAIN CHILD CARE FOR

CHILD UNDER AGE 6.— (A) IN GENERAL.—If the Secretary determines that a 

State to which a grant is made under section 403 for a fiscal year has violated section 407(e)(2) during the fiscal 

year, the Secretary shall reduce the grant payable to the 

State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not more than 

5 percent of the State family assistance grant. 

(B) PENALTY BASED ON SEVERITY OF FAILURE.—The Secretary shall impose reductions under subparagraph (A) 

with respect to a fiscal year based on the degree of noncompliance. 

ø(12)¿ (10) REQUIREMENT TO EXPEND ADDITIONAL STATE

FUNDS TO REPLACE GRANT REDUCTIONS; PENALTY FOR FAILURE

TO DO SO.—If the grant payable to a State under section 

403(a)(1) for a fiscal year is reduced by reason of this subsection, the State shall, during the immediately succeeding fiscal year, expend under the State program funded under this 

part an amount equal to the total amount of such reductions. 

If the State fails during such succeeding fiscal year to make 

the expenditure required by the preceding sentence from its 

own funds, the Secretary may reduce the grant payable to the 

State under section 403(a)(1) for the fiscal year that follows 

such succeeding fiscal year by an amount equal to the sum of— 

(A) not more than 2 percent of the State family assistance grant; and 

(B) the amount of the expenditure required by the preceding sentence. 

ø(13) PENALTY FOR FAILURE OF STATE TO MAINTAIN HISTORIC

EFFORT DURING YEAR IN WHICH WELFARE-TO-WORK GRANT IS RECEIVED.—If a grant is made to a State under section 

126 

403(a)(5)(A) for a fiscal year and paragraph (7) of this subsection requires the grant payable to the State under section 

403(a)(1) to be reduced for the immediately succeeding fiscal 

year, then the Secretary shall reduce the grant payable to the 

State under section 403(a)(1) for such succeeding fiscal year by 

the amount of the grant made to the State under section 

403(a)(5)(A) for the fiscal year. 

ø(14)¿ (11) PENALTY FOR FAILURE TO REDUCE ASSISTANCE FOR

RECIPIENTS REFUSING WITHOUT GOOD CAUSE TO WORK.— 

(A) IN GENERAL.—If the Secretary determines that a 

State to which a grant is made under section 403 in a fiscal year has violated section 407(e) during the fiscal year, 

the Secretary shall reduce the grant payable to the State 

under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not less than 1 percent and 

not more than 5 percent of the State family assistance 

grant. 

(B) PENALTY BASED ON SEVERITY OF FAILURE.—The Secretary shall impose reductions under subparagraph (A) 

with respect to a fiscal year based on the degree of noncompliance. 

ø(15)¿ (12) PENALTY FOR FAILURE TO ESTABLISH OR COMPLY

WITH WORK PARTICIPATION VERIFICATION PROCEDURES.— 

(A) IN GENERAL.—If the Secretary determines that a 

State to which a grant is made under section 403 in a fiscal year has violated section 407(i)(2) during the fiscal 

year, the Secretary shall reduce the grant payable to the 

State under section 403(a)(1) for the immediately succeeding fiscal year by an amount equal to not less than 1 

percent and not more than 5 percent of the State family 

assistance grant. 

(B) PENALTY BASED ON SEVERITY OF FAILURE.—The Secretary shall impose reductions under subparagraph (A) 

with respect to a fiscal year based on the degree of noncompliance. 

ø(16)¿ (13) PENALTY FOR FAILURE TO ENFORCE SPENDING

POLICIES.— 

(A) IN GENERAL.—If, within 2 years after the date of the 

enactment of this paragraph, any State has not reported 

to the Secretary on such State’s implementation of the 

policies and practices required by section 408(a)(12), or the 

Secretary determines, based on the information provided 

in State reports, that any State has not implemented and 

maintained such policies and practices, the Secretary shall 

reduce, by an amount equal to 5 percent of the State family assistance grant, the grant payable to such State under 

section 403(a)(1) for— 

(i) the fiscal year immediately succeeding the year 

in which such 2-year period ends; and 

(ii) each succeeding fiscal year in which the State 

does not demonstrate that such State has implemented and maintained such policies and practices. 

(B) REDUCTION OF APPLICABLE PENALTY.—The Secretary 

may reduce the amount of the reduction required under 

127 

subparagraph (A) based on the degree of noncompliance of 

the State. 

(C) STATE NOT RESPONSIBLE FOR INDIVIDUAL VIOLA- TIONS.—Fraudulent activity by any individual in an attempt to circumvent the policies and practices required by 

section 408(a)(12) shall not trigger a State penalty under 

subparagraph (A). 

(b) REASONABLE CAUSE EXCEPTION.— (1) IN GENERAL.—The Secretary may not impose a penalty on 

a State under subsection (a) with respect to a requirement if 

the Secretary determines that the State has reasonable cause 

for failing to comply with the requirement. 

(2) EXCEPTION.—Paragraph (1) of this subsection shall not 

apply to any penalty under paragraph (6), (7), ø(8), (10), (12), 

or (13)¿ or (10) of subsection (a) øand, with respect to the penalty under paragraph (2)(B) of subsection (a), shall only apply 

to the extent the Secretary determines that the reasonable 

cause for failure to comply with a requirement of that paragraph is as a result of a one-time, unexpected event, such as 

a widespread data system failure or a natural or man-made 

disaster.¿. 

(c) CORRECTIVE COMPLIANCE PLAN.— (1) IN GENERAL.— (A) NOTIFICATION OF VIOLATION.—Before imposing a penalty against a State under subsection (a) with respect to a 

violation of this part, the Secretary shall notify the State 

of the violation and allow the State the opportunity to 

enter into a corrective compliance plan in accordance with 

this subsection which outlines how the State will correct or 

discontinue, as appropriate, the violation and how the 

State will insure continuing compliance with this part. 

(B) 60-DAY PERIOD TO PROPOSE A CORRECTIVE COMPLIANCE PLAN.—During the 60-day period that begins on the 

date the State receives a notice provided under subparagraph (A) with respect to a violation, the State may submit 

to the Federal Government a corrective compliance plan to 

correct or discontinue, as appropriate, the violation. 

(C) CONSULTATION ABOUT MODIFICATIONS.—During the 

60-day period that begins with the date the Secretary receives a corrective compliance plan submitted by a State in 

accordance with subparagraph (B), the Secretary may consult with the State on modifications to the plan. 

(D) ACCEPTANCE OF PLAN.—A corrective compliance plan 

submitted by a State in accordance with subparagraph (B) 

is deemed to be accepted by the Secretary if the Secretary 

does not accept or reject the plan during 60-day period 

that begins on the date the plan is submitted. 

(2) EFFECT OF CORRECTING OR DISCONTINUING VIOLATION.— 

The Secretary may not impose any penalty under subsection 

(a) with respect to any violation covered by a State corrective 

compliance plan accepted by the Secretary if the State corrects 

or discontinues, as appropriate, the violation pursuant to the 

plan. 

(3) EFFECT OF FAILING TO CORRECT OR DISCONTINUE VIOLATION.—The Secretary shall assess some or all of a penalty imVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00127 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
128 

posed on a State under subsection (a) with respect to a violation if the State does not, in a timely manner, correct or discontinue, as appropriate, the violation pursuant to a State corrective compliance plan accepted by the Secretary. 

(4) INAPPLICABILITY TO CERTAIN PENALTIES.—This subsection 

shall not apply to the imposition of a penalty against a State 

under paragraph ø(2)(B),¿ (6), (7), ø(8), (10), (12), (13), or (16)¿ 

(10), or (13) of subsection (a). 

(d) LIMITATION ON AMOUNT OF PENALTIES.— (1) IN GENERAL.—In imposing the penalties described in subsection (a), the Secretary shall not reduce any quarterly payment to a State by more than 25 percent. 

(2) CARRYFORWARD OF UNRECOVERED PENALTIES.—To the extent that paragraph (1) of this subsection prevents the Secretary from recovering during a fiscal year the full amount of 

penalties imposed on a State under subsection (a) of this section for a prior fiscal year, the Secretary shall apply any remaining amount of such penalties to the grant payable to the 

State under section 403(a)(1) for the immediately succeeding 

fiscal year. 

* * * * * * * 

SEC. 411. DATA COLLECTION AND REPORTING. 

(a) QUARTERLY REPORTS BY STATES.— ø(1) GENERAL REPORTING REQUIREMENT.—¿ 

ø(A)¿ (1) CONTENTS OF REPORT.—Each eligible State shall 

collect on a monthly basis, and report to the Secretary on a 

quarterly basis, the following disaggregated case record information on the families receiving assistance under the State 

program funded under this part ø(except for information relating to activities carried out under section 403(a)(5)) or any 

other State program funded with qualified State expenditures 

(as defined in section 409(a)(7)(B)(i))¿: 

ø(i)¿ (A) The county of residence of the family. 

ø(ii)¿ (B) Whether a child receiving such assistance or 

an adult in the family is receiving— 

ø(I)¿ (i) Federal disability insurance benefits; 

ø(II)¿ (ii) benefits based on Federal disability status; 

ø(III)¿ (iii) aid under a State plan approved under 

title XIV (as in effect without regard to the amendment made by section 301 of the Social Security 

Amendments of 1972); 

ø(IV)¿ (iv) aid or assistance under a State plan approved under title XVI (as in effect without regard to 

such amendment) by reason of being permanently and 

totally disabled; or 

ø(V)¿ (v) supplemental security income benefits 

under title XVI (as in effect pursuant to such amendment) by reason of disability. 

ø(iii)¿ (C) The ages of the members of such families. 

ø(iv)¿ (D) The number of individuals in the family, and 

the relation of each family member to the head of the family. 

ø(v)¿ (E) The employment status and earnings of the 

employed adult in the family. 

129 

ø(vi)¿ (F) The marital status of the adults in the family, 

including whether such adults have never married, are 

widowed, or are divorced. 

ø(vii)¿ (G) The race and educational level of each adult 

in the family. 

ø(viii)¿ (H) The race and educational level of each child 

in the family. 

ø(ix)¿ (I) Whether the family received subsidized housing, medical assistance under the State plan approved 

under title XIX, supplemental nutrition assistance program benefits, or subsidized child care, and if the latter 2, 

the amount received. 

ø(x)¿ (J) The number of months that the family has received each type of assistance under the program. 

ø(xi) If the adults participated in, and the number of 

hours per week of participation in, the following activities: 

ø(I) Education. 

ø(II) Subsidized private sector employment. 

ø(III) Unsubsidized employment. 

ø(IV) Public sector employment, work experience, or 

community service. 

ø(V) Job search. 

ø(VI) Job skills training or on-the-job training. 

ø(VII) Vocational education. 

ø(xii) Information necessary to calculate participation 

rates under section 407.¿ 

(K) The work eligibility status of each individual in the 

family, and— 

(i) in the case of each work-eligible individual (as defined in the regulations promulgated pursuant to section 407(i)(1)(A)(i)) in the family— 

(I) the number of hours (including zero hours) 

per month of participation in— 

(aa) work activities (as defined in section 

407(d)); and 

(bb) any other activity required by the State 

to remove a barrier to employment; and 

(ii) in the case of each individual in the family who 

is not a work-eligible individual (as so defined), the 

reason for that status. 

(L) For each work-eligible individual (as so defined) and 

each adult in the family who did not participate in work 

activities (as so defined) during a month, the reason for the 

lack of participation. 

ø(xiii)¿ (M) The type and amount of assistance received 

under the program, including the amount of and reason for 

any reduction of assistance (including sanctions). 

ø(xiv)¿ (N) Any amount of unearned income received by 

any member of the family. 

ø(xv) ¿ (O) The citizenship of the members of the family. 

ø(xvi)¿ (P) From a sample of closed cases, whether the 

family left the program, and if so, whether the family left 

due to— 

ø(I)¿ (i) employment; 

ø(II)¿ (ii) marriage; 

130 

ø(III)¿ (iii) the prohibition set forth in section 

408(a)(7); 

ø(IV)¿ (iv) sanction; or 

ø(V)¿ (v) State policy. 

ø(xvii)¿ (Q) With respect to each individual in the family 

who has not attained 20 years of age, whether the individual is a parent of a child in the family. 

ø(B) USE OF SAMPLES.— ø(i) AUTHORITY.—A State may comply with subparagraph (A) by submitting disaggregated case record information on a sample of families selected through the 

use of scientifically acceptable sampling methods approved by the Secretary. 

ø(ii) SAMPLING AND OTHER METHODS.—The Secretary 

shall provide the States with such case sampling plans 

and data collection procedures as the Secretary deems 

necessary to produce statistically valid estimates of 

the performance of State programs funded under this 

part and any other State programs funded with qualified State expenditures (as defined in section 

409(a)(7)(B)(i)). The Secretary may develop and implement procedures for verifying the quality of data submitted by the States.¿ 

(2) REPORT ON USE OF FEDERAL FUNDS TO COVER ADMINISTRA- TIVE COSTS AND OVERHEAD.—The report required by paragraph 

(1) for a fiscal quarter shall include a statement of the percentage of the funds paid to the State under this part for the quarter that are used to cover administrative costs or overheadø, with a separate statement of the percentage of such funds that 

are used to cover administrative costs or overhead incurred for 

programs operated with funds provided under section 

403(a)(5).¿. (3) REPORT ON STATE EXPENDITURES ON PROGRAMS FOR

NEEDY FAMILIES.—The report required by paragraph (1) for a 

fiscal quarter shall include a statement of the total amount expended by the State during the quarter on programs for needy 

familiesø, with a separate statement of the total amount expended by the State during the quarter on programs operated 

with funds provided under section 403(a)(5).¿. 

(4) REPORT ON NONCUSTODIAL PARENTS PARTICIPATING IN

WORK ACTIVITIES.—The report required by paragraph (1) for a 

fiscal quarter shall include the number of noncustodial parents 

in the State who participated in work activities (as defined in 

section 407(d)) during the quarterø, with a separate statement 

of the number of such parents who participated in programs 

operated with funds provided under section 403(a)(5).¿. 

(5) REPORT ON TRANSITIONAL SERVICES.—The report required 

by paragraph (1) for a fiscal quarter shall include the total 

amount expended by the State during the quarter to provide 

transitional services to a family that has ceased to receive assistance under this part because of employment, along with a 

description of such services. 

(6) REPORT ON FAMILIES RECEIVING ASSISTANCE.—The report 

required by paragraph (1) for a fiscal quarter shall include for 

each month in the quarter— 

131 

(A) the number of families and individuals receiving assistance under the State program funded under this part 

(including the number of 2-parent and 1-parent families); 

(B) the total dollar value of such assistance received by 

all families; and 

(C) with respect to families and individuals participating 

in a program operated with funds provided under section 

403(a)(5)— 

(i) the total number of such families and individuals; 

and 

(ii) the number of such families and individuals 

whose participation in such a program was terminated 

during a month. 

(7) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to define the data elements with 

respect to which reports are required by this subsection, and 

shall consult with the Secretary of Labor in defining the data 

elements with respect to programs operated with funds provided under section 403(a)(5). 

(b) ANNUAL REPORTS TO THE CONGRESS BY THE SECRETARY.—Not 

later than 6 months after the end of fiscal year 1997, and each fiscal year thereafter, the Secretary shall transmit to the Congress a 

report describing— 

(1) whether the States are meeting— 

(A) the øparticipation rates¿ outcome measures described 

in section 407(a); and 

(B) the objectives of— 

(i) increasing employment and earnings of needy 

families, and child support collections; and 

(ii) decreasing out-of-wedlock pregnancies and child 

poverty; 

(2) the demographic and financial characteristics of families 

applying for assistance, families receiving assistance, and families that become ineligible to receive assistance; 

(3) the characteristics of each State program funded under 

this part; and 

(4) the trends in employment and earnings of needy families 

with minor children living at home. 

ø(c) PRE-REAUTHORIZATION STATE-BY-STATE REPORTS ON ENGAGE- MENT IN ADDITIONAL WORK ACTIVITIES AND EXPENDITURES FOR

OTHER BENEFITS AND SERVICES.— 

ø(1) STATE REPORTING REQUIREMENTS.— 

ø(A) REPORTING PERIODS AND DEADLINES.—Each eligible 

State shall submit to the Secretary the following reports: 

ø(i) MARCH 2011 REPORT.—Not later than May 31, 

2011, a report for the period that begins on March 1, 

2011, and ends on March 31, 2011, that contains the 

information specified in subparagraphs (B) and (C). 

ø(ii) APRIL-JUNE, 2011 REPORT.—Not later than August 31, 2011, a report for the period that begins on 

April 1, 2011, and ends on June 30, 2011, that contains with respect to the 3 months that occur during 

that period— 

ø(I) the average monthly numbers for the information specified in subparagraph (B); and 

132 

ø(II) the information specified in subparagraph 

(C). 

ø(B) ENGAGEMENT IN ADDITIONAL WORK ACTIVITIES.— ø(i) With respect to each work-eligible individual in 

a family receiving assistance during a reporting period 

specified in subparagraph (A), whether the individual 

engages in any activities directed toward attaining 

self-sufficiency during a month occurring in a reporting period, and if so, the specific activities— 

ø(I) that do not qualify as a work activity under 

section 407(d) but that are otherwise reasonably 

calculated to help the family move toward self-sufficiency; or 

ø(II) that are of a type that would be counted toward the State participation rates under section 

407 but for the fact that— 

ø(aa) the work-eligible individual did not 

engage in sufficient hours of the activity; 

ø(bb) the work-eligible individual has 

reached the maximum time limit allowed for 

having participation in the activity counted 

toward the State’s work participation rate; or 

ø(cc) the number of work-eligible individuals engaged in such activity exceeds a limitation under such section. 

ø(ii) Any other information that the Secretary determines appropriate with respect to the information required under clause (i), including if the individual has 

no hours of participation, the principal reason or reasons for such non-participation. 

ø(C) EXPENDITURES ON OTHER BENEFITS AND SERVICES.— ø(i) Detailed, disaggregated information regarding 

the types of, and amounts of, expenditures made by 

the State during a reporting period specified in subparagraph (A) using— 

ø(I) Federal funds provided under section 403 

that are (or will be) reported by the State on Form 

ACF–196 (or any successor form) under the category of other expenditures or the category of benefits or services provided in accordance with the 

authority provided under section 404(a)(2); or 

ø(II) State funds expended to meet the requirements of section 409(a)(7) and reported by the 

State in the category of other expenditures on 

Form ACF–196 (or any successor form). 

ø(ii) Any other information that the Secretary determines appropriate with respect to the information required under clause (i). 

ø(2) PUBLICATION OF SUMMARY AND ANALYSIS OF ENGAGE- MENT IN ADDITIONAL ACTIVITIES.—Concurrent with the submission of each report required under paragraph (1)(A), an eligible 

State shall publish on an Internet website maintained by the 

State agency responsible for administering the State program 

funded under this part (or such State-maintained website as 

the Secretary may approve)— 

133 

ø(A) a summary of the information submitted in the report: 

ø(B) an analysis statement regarding the extent to 

which the information changes measures of total engagement in work activities from what was (or will be) reported 

by the State in the quarterly report submitted under subsection (a) for the comparable period; and 

ø(C) a narrative describing the most common activities 

contained in the report that are not countable toward the 

State participation rates under section 407. 

ø(3) APPLICATION OF AUTHORITY TO USE SAMPLING.—Subparagraph (B) of subsection (a)(1) shall apply to the reports required under paragraph (1) of this subsection in the same manner as subparagraph (B) of subsection (a)(1) applies to reports 

required under subparagraph (A) of subsection (a)(1). 

ø(4) SECRETARIAL REPORTS TO CONGRESS.— 

ø(A) MARCH 2011 REPORT.—Not later than June 30, 2011, 

the Secretary shall submit to Congress a report on the information submitted by eligible States for the March 2011 

reporting period under paragraph (1)(A)(i). The report 

shall include a State-by-State summary and analysis of 

such information, identification of any States with missing 

or incomplete reports, and recommendations for such administrative or legislative changes as the Secretary determines are necessary to require eligible States to report the 

information on a recurring basis. 

ø(B) APRIL-JUNE, 2011 REPORT.—Not later than September 30, 2011, the Secretary shall submit to Congress a 

report on the information submitted by eligible States for 

the April-June 2011 reporting period under paragraph 

(1)(A)(ii). The report shall include a State-by-State summary and analysis of such information, identification of 

any States with missing or incomplete reports, and recommendations for such administrative or legislative 

changes as the Secretary determines are necessary to require eligible States to report the information on a recurring basis 

ø(5) AUTHORITY FOR EXPEDITIOUS IMPLEMENTATION.—The requirements of chapter 5 of title 5, United States Code (commonly referred to as the ‘‘Administrative Procedure Act’’) or 

any other law relating to rulemaking or publication in the Federal Register shall not apply to the issuance of guidance or instructions by the Secretary with respect to the implementation 

of this subsection to the extent the Secretary determines that 

compliance with any such requirement would impede the expeditious implementation of this subsection. 

ø(d) DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTER- OPERABILITY.— 

ø(1) DATA EXCHANGE STANDARDS.— ø(A) DESIGNATION.—The Secretary, in consultation with 

an interagency work group which shall be established by 

the Office of Management and Budget, and considering 

State and tribal perspectives, shall, by rule, designate a 

data exchange standard for any category of information required to be reported under this part. 

134 

ø(B) DATA EXCHANGE STANDARDS MUST BE NONPROPRIETARY AND INTEROPERABLE.—The data exchange standard 

designated under subparagraph (A) shall, to the extent 

practicable, be nonproprietary and interoperable. 

ø(C) OTHER REQUIREMENTS.—In designating data exchange standards under this section, the Secretary shall, 

to the extent practicable, incorporate— 

ø(i) interoperable standards developed and maintained by an international voluntary consensus standards body, as defined by the Office of Management 

and Budget, such as the International Organization 

for Standardization; 

ø(ii) interoperable standards developed and maintained by intergovernmental partnerships, such as the 

National Information Exchange Model; and 

ø(iii) interoperable standards developed and maintained by Federal entities with authority over contracting and financial assistance, such as the Federal 

Acquisition Regulatory Council. 

ø(2) DATA EXCHANGE STANDARDS FOR REPORTING.— 

ø(A) DESIGNATION.—The Secretary, in consultation with 

an interagency work group established by the Office of 

Management and Budget, and considering State and tribal 

perspectives, shall, by rule, designate data exchange 

standards to govern the data reporting required under this 

part. 

ø(B) REQUIREMENTS.—The data exchange standards required by subparagraph (A) shall, to the extent practicable— 

ø(i) incorporate a widely-accepted, nonproprietary, 

searchable, computer-readable format; 

ø(ii) be consistent with and implement applicable accounting principles; and 

ø(iii) be capable of being continually upgraded as 

necessary. 

ø(C) INCORPORATION OF NONPROPRIETARY STANDARDS.— 

In designating reporting standards under this paragraph, 

the Secretary shall, to the extent practicable, incorporate 

existing nonproprietary standards, such as the eXtensible 

Markup Language.¿ 

(c) REPORTING OF INFORMATION ON EMPLOYMENT AND EARNINGS

OUTCOMES.—The Secretary, in consultation with the Secretary of 

Labor, shall determine the information that is necessary to compute 

the employment and earnings outcomes and the statistical adjustment model for the employment and earnings outcomes required 

under section 407, and each eligible State shall collect and report 

that information to the Secretary. 

(d) DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.— 

(1) DESIGNATION.—The Secretary shall, in consultation with 

an interagency work group established by the Office of Management and Budget and considering State government perspectives, by rule, designate data exchange standards to govern, 

under this part— 

135 

(A) necessary categories of information that State agencies operating programs under State plans approved under 

this part are required under applicable Federal law to electronically exchange with another State agency; and 

(B) Federal reporting and data exchange required under 

applicable Federal law. 

(2) REQUIREMENTS.—The data exchange standards required 

by paragraph (1) shall, to the extent practicable— 

(A) incorporate a widely accepted, non-proprietary, 

searchable, computer-readable format, such as the eXtensible Markup Language; 

(B) contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model; 

(C) incorporate interoperable standards developed and 

maintained by Federal entities with authority over contracting and financial assistance; 

(D) be consistent with and implement applicable accounting principles; 

(E) be implemented in a manner that is cost-effective and 

improves program efficiency and effectiveness; and 

(F) be capable of being continually upgraded as necessary. 

(3) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to require a change to existing data exchange 

standards found to be effective and efficient. 

* * * * * * * 

SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES. 

(a) GRANTS FOR INDIAN TRIBES.— (1) TRIBAL FAMILY ASSISTANCE GRANT.— (A) IN GENERAL.—For each of fiscal years ø2017 and 

2018¿ 2019 through 2023, the Secretary shall pay to each 

Indian tribe that has an approved tribal family assistance 

plan a tribal family assistance grant for the fiscal year in 

an amount equal to the amount determined under subparagraph (B), which shall be reduced for a fiscal year, on 

a pro rata basis for each quarter, in the case of a tribal 

family assistance plan approved during a fiscal year for 

which the plan is to be in effect, and shall reduce the 

grant payable under section 403(a)(1) to any State in 

which lies the service area or areas of the Indian tribe by 

that portion of the amount so determined that is attributable to expenditures by the State. 

(B) AMOUNT DETERMINED.— 

(i) IN GENERAL.—The amount determined under this 

subparagraph is an amount equal to the total amount 

of the Federal payments to a State or States under 

section 403 (as in effect during such fiscal year) for fiscal year 1994 attributable to expenditures (other than 

child care expenditures) by the State or States under 

parts A and F (as so in effect) for fiscal year 1994 for 

Indian families residing in the service area or areas 

identified by the Indian tribe pursuant to subsection 

(b)(1)(C) of this section. 

136 

(ii) USE OF STATE SUBMITTED DATA.— 

(I) IN GENERAL.—The Secretary shall use State 

submitted data to make each determination under 

clause (i). 

(II) DISAGREEMENT WITH DETERMINATION.—If an 

Indian tribe or tribal organization disagrees with 

State submitted data described under subclause 

(I), the Indian tribe or tribal organization may 

submit to the Secretary such additional information as may be relevant to making the determination under clause (i) and the Secretary may consider such information before making such determination. 

(2) GRANTS FOR INDIAN TRIBES THAT RECEIVED JOBS FUNDS.— 

(A) IN GENERAL.—For each of fiscal years 2017 and 2018, 

the Secretary shall pay to each eligible Indian tribe that 

proposes to operate a program described in subparagraph 

(C) a grant in an amount equal to the amount received by 

the Indian tribe in fiscal year 1994 under section 482(i) (as 

in effect during fiscal year 1994). 

(B) ELIGIBLE INDIAN TRIBE.—For purposes of subparagraph (A), the term ‘‘eligible Indian tribe’’ means an Indian 

tribe or Alaska Native organization that conducted a job 

opportunities and basic skills training program in fiscal 

year 1995 under section 482(i) (as in effect during fiscal 

year 1995). 

(C) USE OF GRANT.—Each Indian tribe to which a grant 

is made under this paragraph shall use the grant for the 

purpose of operating a program to make work activities 

available to such population and such service area or areas 

as the tribe specifies. 

(D) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

appropriated $7,633,287 for each fiscal year specified in 

subparagraph (A) for grants under subparagraph (A). 

ø(3) WELFARE-TO-WORK GRANTS.— 

ø(A) IN GENERAL.—The Secretary of Labor shall award a 

grant in accordance with this paragraph to an Indian tribe 

for each fiscal year specified in section 403(a)(5)(H) for 

which the Indian tribe is a welfare-to-work tribe, in such 

amount as the Secretary of Labor deems appropriate, subject to subparagraph (B) of this paragraph. 

ø(B) WELFARE-TO-WORK TRIBE.—An Indian tribe shall be 

considered a welfare-to-work tribe for a fiscal year for purposes of this paragraph if the Indian tribe meets the following requirements: 

ø(i) The Indian tribe has submitted to the Secretary 

of Labor a plan which describes how, consistent with 

section 403(a)(5), the Indian tribe will use any funds 

provided under this paragraph during the fiscal year. 

If the Indian tribe has a tribal family assistance plan, 

the plan referred to in the preceding sentence shall be 

in the form of an addendum to the tribal family assistance plan. 

137 

ø(ii) The Indian tribe is operating a program under 

a tribal family assistance plan approved by the Secretary of Health and Human Services, a program described in paragraph (2)(C), or an employment program funded through other sources under which substantial services are provided to recipients of assistance under a program funded under this part. 

ø(iii) The Indian tribe has provided the Secretary of 

Labor with an estimate of the amount that the Indian 

tribe intends to expend during the fiscal year (excluding tribal expenditures described in section 

409(a)(7)(B)(iv) (other than subclause (III) thereof)) 

pursuant to this paragraph. 

ø(iv) The Indian tribe 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. 

ø(C) LIMITATIONS ON USE OF FUNDS.— 

ø(i) IN GENERAL.—Section 403(a)(5)(C) shall apply to 

funds provided to Indian tribes under this paragraph 

in the same manner in which such section applies to 

funds provided under section 403(a)(5). 

ø(ii) WAIVER AUTHORITY.—The Secretary of Labor 

may waive or modify the application of a provision of 

section 403(a)(5)(C) (other than clause (viii) thereof) 

with respect to an Indian tribe to the extent necessary 

to enable the Indian tribe to operate a more efficient 

or effective program with the funds provided under 

this paragraph. 

ø(iii) REGULATIONS.—Within 90 days after the date 

of the enactment of this paragraph, the Secretary of 

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.¿ 

(b) 3-YEAR TRIBAL FAMILY ASSISTANCE PLAN.— (1) IN GENERAL.—Any Indian tribe that desires to receive a 

tribal family assistance grant shall submit to the Secretary a 

3-year tribal family assistance plan that— 

(A) outlines the Indian tribe’s approach to providing welfare-related services for the 3-year period, consistent with 

this section; 

(B) specifies whether the welfare-related services provided under the plan will be provided by the Indian tribe 

or through agreements, contracts, or compacts with intertribal consortia, States, or other entities; 

(C) identifies the population and service area or areas to 

be served by such plan; 

(D) provides that a family receiving assistance under the 

plan may not receive duplicative assistance from other 

State or tribal programs funded under this part; 

(E) identifies the employment opportunities in or near 

the service area or areas of the Indian tribe and the manVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00137 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
138 

ner in which the Indian tribe will cooperate and participate in enhancing such opportunities for recipients of assistance under the plan consistent with any applicable 

State standards; and 

(F) applies the fiscal accountability provisions of section 

5(f)(1) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450c(f)(1)), relating to the submission of a single-agency audit report required by chapter 75 

of title 31, United States Code. 

(2) APPROVAL.—The Secretary shall approve each tribal family assistance plan submitted in accordance with paragraph (1). 

(3) CONSORTIUM OF TRIBES.—Nothing in this section shall 

preclude the development and submission of a single tribal 

family assistance plan by the participating Indian tribes of an 

intertribal consortium. 

(c) MINIMUM WORK PARTICIPATION REQUIREMENTS AND TIME LIMITS.—The Secretary, with the participation of Indian tribes, shall 

establish for each Indian tribe receiving a grant under this section 

minimum work participation requirements, appropriate time limits 

for receipt of welfare-related services under the grant, and penalties against individuals— 

(1) consistent with the purposes of this section; 

(2) consistent with the economic conditions and resources 

available to each tribe; and 

(3) similar to comparable provisions in section 407(e). 

(d) EMERGENCY ASSISTANCE.—Nothing in this section shall preclude an Indian tribe from seeking emergency assistance from any 

Federal loan program or emergency fund. 

(e) ACCOUNTABILITY.—Nothing in this section shall be construed 

to limit the ability of the Secretary to maintain program funding 

accountability consistent with— 

(1) generally accepted accounting principles; and 

(2) the requirements of the Indian Self-Determination and 

Education Assistance Act (25 U.S.C. 450 et seq.). 

ø(f) ELIGIBILITY FOR FEDERAL LOANS.—Section 406 shall apply to 

an Indian tribe with an approved tribal assistance plan in the 

same manner as such section applies to a State, except that section 

406(c) shall be applied by substituting ‘‘section 412(a)’’ for ‘‘section 

403(a)’’.¿ 

(g) PENALTIES.— 

(1) Subsections (a)(1), ø(a)(6),¿ (b), and (c) of section 409, 

shall apply to an Indian tribe with an approved tribal assistance plan in the same manner as such subsections apply to a 

State. 

(2) Section 409(a)(3) shall apply to an Indian tribe with an 

approved tribal assistance plan by substituting ‘‘meet minimum work participation requirements established under section 412(c)’’ for ‘‘comply with section 407(a)’’. 

(h) DATA COLLECTION AND REPORTING.—Section 411 shall apply 

to an Indian tribe with an approved tribal family assistance plan. 

(i) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.— (1) IN GENERAL.—Notwithstanding any other provision of 

this section, and except as provided in paragraph (2), an Indian tribe in the State of Alaska that receives a tribal family 

assistance grant under this section shall use the grant to operVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00138 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
139 

ate a program in accordance with requirements comparable to 

the requirements applicable to the program of the State of 

Alaska funded under this part. Comparability of programs 

shall be established on the basis of program criteria developed 

by the Secretary in consultation with the State of Alaska and 

such Indian tribes. 

(2) WAIVER.—An Indian tribe described in paragraph (1) may 

apply to the appropriate State authority to receive a waiver of 

the requirement of paragraph (1). 

SEC. 413. EVALUATION OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND RELATED PROGRAMS. 

(a) EVALUATION OF THE IMPACTS OF øTANF¿ JOBS.—The Secretary shall conduct research on the effect of State programs funded under this part øand any other State program funded with 

qualified State expenditures (as defined in section 409(a)(7)(B)(i))¿ 

on employment, self-sufficiency, child well-being, unmarried births, 

marriage, poverty, economic mobility, and other factors as determined by the Secretary. 

(b) EVALUATION OF GRANTS TO IMPROVE CHILD WELL-BEING BY

PROMOTING HEALTHY MARRIAGE AND RESPONSIBLE FATHERHOOD.— The Secretary shall conduct research to determine the effects of the 

grants made under section 403(a)(2) on child well-being, marriage, 

family stability, economic mobility, poverty, and other factors as 

determined by the Secretary. 

(c) DISSEMINATION OF INFORMATION.—The Secretary shall, in 

consultation with States receiving funds provided under this part, 

develop methods of disseminating information on any research, 

evaluation, or study conducted under this section, including facilitating the sharing of information and best practices among States 

and localities. 

(d) STATE-INITIATED EVALUATIONS.—A State shall be eligible to 

receive funding to evaluate the State program funded under this 

part øor any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i))¿ if— 

(1) the State submits to the Secretary a description of the 

proposed evaluation; 

(2) the Secretary determines that the design and approach of 

the proposed evaluation is rigorous and is likely to yield information that is credible and will be useful to other States; and 

(3) unless waived by the Secretary, the State contributes to 

the cost of the evaluation, from non-Federal sources, an 

amount equal to at least 25 percent of the cost of the proposed 

evaluation. 

(e) CENSUS BUREAU RESEARCH.— 

(1) The Bureau of the Census shall implement or enhance 

household surveys of program participation, in consultation 

with the Secretary and the Bureau of Labor Statistics and 

made available to interested parties, to allow for the assessment of the outcomes of continued welfare reform on the economic and child well-being of low-income families with children, including those who received assistance or services from 

a State program funded under this part øor any other State 

program funded with qualified State expenditures (as defined 

in section 409(a)(7)(B)(i))¿. The content of the surveys should 

include such information as may be necessary to examine the 

140 

issues of unmarried childbearing, marriage, welfare dependency and compliance with work requirements, the beginning 

and ending of spells of assistance, work, earnings and employment stability, and the well-being of children. 

(2) To carry out the activities specified in paragraph (1), the 

Bureau of the Census, the Secretary, and the Bureau of Labor 

Statistics shall consider ways to improve the surveys and data 

derived from the surveys to— 

(A) address under reporting of the receipt of means-tested benefits and tax benefits for low-income individuals and 

families; 

(B) increase understanding of poverty spells and longterm poverty, including by facilitating the matching of information to better understand intergenerational poverty; 

(C) generate a better geographical understanding of poverty such as through State-based estimates and measures 

of neighborhood poverty; 

(D) increase understanding of the effects of means-tested 

benefits and tax benefits on the earnings and incomes of 

low-income families; and 

(E) improve how poverty and economic well-being are 

measured, including through the use of consumption measures, material deprivation measures, social exclusion 

measures, and economic and social mobility measures. 

(f) RESEARCH AND EVALUATION CONDUCTED UNDER THIS SEC- TION.—Research and evaluation conducted under this section designed to determine the effects of a program or policy (other than 

research conducted under subsection (e)) 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. 

(g) DEVELOPMENT OF WHAT WORKS CLEARINGHOUSE OF PROVEN

AND PROMISING APPROACHES TO MOVE WELFARE RECIPIENTS INTO

WORK.— 

(1) IN GENERAL.—The Secretary, in consultation with the 

Secretary of Labor, shall develop a database (which shall be referred to as the ‘‘What Works Clearinghouse of Proven and 

Promising Projects to Move Welfare Recipients into Work’’) of 

the projects that used a proven approach or a promising approach in moving welfare recipients into work, based on independent, rigorous evaluations of the projects. The database 

shall include a separate listing of projects that used a developmental approach in delivering services and a further separate 

listing of the projects with no or negative effects. The Secretary 

shall add to the What Works Clearinghouse of Proven and 

Promising Projects to Move Welfare Recipients into Work data 

about the projects that, based on an independent, well-conducted experimental evaluation of a program or project, using 

random assignment or other research methodologies that allow 

for the strongest possible causal inferences, have shown they 

are proven, promising, developmental, or ineffective approaches. 

(2) CRITERIA FOR EVIDENCE OF EFFECTIVENESS OF APPROACH.—The Secretary, in consultation with the Secretary of 

Labor and organizations with experience in evaluating reVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00140 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
141 

search on the effectiveness of various approaches in delivering 

services to move welfare recipients into work, shall— 

(A) establish criteria for evidence of effectiveness; and 

(B) ensure that the process for establishing the criteria— 

(i) is transparent; 

(ii) is consistent across agencies; 

(iii) provides opportunity for public comment; and 

(iv) takes into account efforts of Federal agencies to 

identify and publicize effective interventions, including 

efforts at the Department of Health and Human Services, the Department of Education, and the Department of Justice. 

(h) APPROPRIATION.— 

(1) IN GENERAL.—Of the amount appropriated by section 

403(a)(1) for each fiscal year, 0.33 percent shall be available for 

research, technical assistance, and evaluation under this section. 

(2) ALLOCATION.—Of the amount made available under paragraph (1) for each fiscal year, the Secretary shall make available $10,000,000 plus such additional amount as the Secretary 

deems necessary and appropriate, to carry out subsection (e). 

(3) BASELINE.—The baseline established pursuant to section 

257 of the Balanced Budget and Deficit Control Act of 1985 (2 

U.S.C. 907(b)(2)) for the Temporary Assistance for Needy Families Program shall be recorded by the Office of Management 

and Budget and the Congressional Budget Office at the level 

prior to any transfers recorded pursuant to section 413(h) of 

this Act. 

* * * * * * * 

SEC. 416. ADMINISTRATION. 

(a) IN GENERAL.—The programs under this part and part D shall 

be administered by an Assistant Secretary for Family Support 

within the Department of Health and Human Services, who shall 

be appointed by the President, by and with the advice and consent 

of the Senate, and who shall be in addition to any other Assistant 

Secretary of Health and Human Services provided for by lawø, and 

the Secretary shall reduce the Federal workforce within the Department of Health and Human Services by an amount equal to 

the sum of 75 percent of the full-time equivalent positions at such 

Department that relate to any direct spending program, or any program funded through discretionary spending, that has been converted into a block grant program under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and the 

amendments made by such Act, and by an amount equal to 75 percent of that portion of the total full-time equivalent departmental 

management positions at such Department that bears the same relationship to the amount appropriated for any direct spending program, or any program funded through discretionary spending, that 

has been converted into a block grant program under the Personal 

Responsibility and Work Opportunity Reconciliation Act of 1996 

and the amendments made by such Act, as such amount relates to 

the total amount appropriated for use by such Department, and, 

notwithstanding any other provision of law, the Secretary shall 

take such actions as may be necessary, including reductions in 

142 

force actions, consistent with sections 3502 and 3595 of title 5, 

United States Code, to reduce the full-time equivalent positions 

within the Department of Health and Human Services by 245 fulltime equivalent positions related to the program converted into a 

block grant under the amendments made by section 103 of the Personal Responsibility and Work Opportunity Reconciliation Act of 

1996, and by 60 full-time equivalent managerial positions in the 

Department.¿. (b) COORDINATION OF ACTIVITIES.—The Secretary shall coordinate 

all activities of the Department of Health and Human Services relating to work activities (as defined in section 407(d)) and requirements and measurement of employment outcomes, and, to the maximum extent practicable, coordinate the activities of the Department 

in this regard with similar activities of other Federal entities. 

(c) DISSEMINATION OF INFORMATION.—The Secretary shall disseminate, for voluntary informational purposes, information on 

practices that scientifically valid research indicates are most successful in improving the quality of State and tribal programs funded under this part. 

* * * * * * * 

SEC. 418. FUNDING FOR CHILD CARE. 

(a) GENERAL CHILD CARE ENTITLEMENT.— 

(1) GENERAL ENTITLEMENT.—Subject to the amount appropriated under paragraph (3), each State shall, for the purpose 

of providing child care assistance, be entitled to payments 

under a grant under this subsection for a fiscal year in an 

amount equal to the greater of— 

(A) the total amount required to be paid to the State 

under section 403 for fiscal year 1994 or 1995 (whichever 

is greater) with respect to expenditures for child care 

under subsections (g) and (i) of section 402 (as in effect before October 1, 1995); or 

(B) the average of the total amounts required to be paid 

to the State for fiscal years 1992 through 1994 under the 

subsections referred to in subparagraph (A). 

(2) REMAINDER.— (A) GRANTS.—The Secretary shall use any amounts appropriated for a fiscal year under paragraph (3), and remaining after the reservation described in paragraph (4) 

and after grants are awarded under paragraph (1), to 

make grants to States under this paragraph. 

(B) ALLOTMENTS TO STATES.—The total amount available 

for payments to States under this paragraph, as determined under subparagraph (A), shall be allotted among 

the States based on the formula used for determining the 

amount of Federal payments to each State under section 

403(n) (as in effect before October 1, 1995). 

(C) FEDERAL MATCHING OF STATE EXPENDITURES EXCEED- ING HISTORICAL EXPENDITURES.—The Secretary shall pay 

to each eligible State for a fiscal year an amount equal to 

the lesser of the State’s allotment under subparagraph (B) 

or the Federal medical assistance percentage for the State 

for the fiscal year (as defined in section 1905(b), as such 

section was in effect on September 30, 1995) of so much of 

143 

the State’s expenditures for child care in that fiscal year 

as exceed the total amount of expenditures by the State 

(including expenditures from amounts made available from 

Federal funds) in fiscal year 1994 or 1995 (whichever is 

greater) for the programs described in paragraph (1)(A). 

(D) REDISTRIBUTION.— 

(i) IN GENERAL.—With respect to any fiscal year, if 

the Secretary determines (in accordance with clause 

(ii)) that any amounts allotted to a State under this 

paragraph for such fiscal year will not be used by such 

State during such fiscal year for carrying out the purpose for which the such amounts are allotted, the Secretary shall make such amounts available in the subsequent fiscal year for carrying out such purpose to 

one or more States which apply for such funds to the 

extent the Secretary determines that such States will 

be able to use such additional amounts for carrying 

out such purpose. Such available amounts shall be redistributed to a State pursuant to section 403(n) (as 

such section was in effect before October 1, 1995) by 

substituting ‘‘the number of children residing in all 

States applying for such funds’’ for ‘‘the number of 

children residing in the United States in the second 

preceding fiscal year’’. 

(ii) TIME OF DETERMINATION AND DISTRIBUTION.— 

The determination of the Secretary under clause (i) for 

a fiscal year shall be made not later than the end of 

the first quarter of the subsequent fiscal year. The redistribution of amounts under clause (i) shall be made 

as close as practicable to the date on which such determination is made. Any amount made available to a 

State from an appropriation for a fiscal year in accordance with this subparagraph shall, for purposes of this 

part, be regarded as part of such State’s payment (as 

determined under this subsection) for the fiscal year 

in which the redistribution is made. 

(3) APPROPRIATION.—For grants under this section, there are 

appropriated ø$2,917,000,000 for each of fiscal years 2017 and 

2018¿ $3,525,000,000 for each of fiscal years 2019 through 

2023. 

(4) INDIAN TRIBES.—The Secretary shall reserve not less than 

1 percent, and not more than 2 percent, of the aggregate 

amount appropriated to carry out this section in each fiscal 

year for payments to Indian tribes and tribal organizations. 

(5) DATA USED TO DETERMINE STATE AND FEDERAL SHARES OF

EXPENDITURES.—In making the determinations concerning expenditures required under paragraphs (1) and (2)(C), the Secretary shall use information that was reported by the State on 

ACF Form 231 and available as of the applicable dates specified in clauses (i)(I), (ii), and (iii)(III) of section 403(a)(1)(D). 

(b) USE OF FUNDS.— 

(1) IN GENERAL.—Amounts received by a State under this 

section shall only be used to provide child care assistance. 

Amounts received by a State under a grant under subsection 

144 

(a)(1) shall be available for use by the State without fiscal year 

limitation. 

(2) USE FOR CERTAIN POPULATIONS.—A State shall ensure 

that not less than 70 percent of the total amount of funds received by the State in a fiscal year under this section are used 

to provide child care assistance to families who are receiving 

assistance under a State program under this part, families who 

are attempting through work activities to transition off of such 

assistance program, and families who are at risk of becoming 

dependent on such assistance program. 

(c) APPLICATION OF CHILD CARE AND DEVELOPMENT BLOCK

GRANT ACT of 1990.—Notwithstanding any other provision of law, 

amounts provided to a State under this section shall be transferred 

to the lead agency under the Child Care and Development Block 

Grant Act of 1990, integrated by the State into the programs established by the State under such Act, and be subject to requirements 

and limitations of such Act. 

(d) DEFINITION.—As used in this section, the term ‘‘State’’ means 

each of the 50 States and the District of Columbia. 

SEC. 419. DEFINITIONS. 

As used in this part: 

(1) ADULT.—The term ‘‘adult’’ means an individual who is 

not a minor child. 

(2) MINOR CHILD.—The term ‘‘minor child’’ means an individual who— 

(A) has not attained 18 years of age; or 

(B) has not attained 19 years of age and is a full-time 

student in a secondary school (or in the equivalent level of 

vocational or technical training). 

(3) FISCAL YEAR.—The term ‘‘fiscal year’’ means any 12- 

month period ending on September 30 of a calendar year. 

(4) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANIZATION.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), the terms ‘‘Indian’’, ‘‘Indian tribe’’, and ‘‘tribal organization’’ have the meaning given such terms by section 4 of 

the Indian Self-Determination and Education Assistance 

Act (25 U.S.C. 450b). 

(B) SPECIAL RULE FOR INDIAN TRIBES IN ALASKA.—The 

term ‘‘Indian tribe’’ means, with respect to the State of 

Alaska, only the Metlakatla Indian Community of the Annette Islands Reserve and the following Alaska Native regional nonprofit corporations: 

(i) Arctic Slope Native Association. 

(ii) Kawerak, Inc. 

(iii) Maniilaq Association. 

(iv) Association of Village Council Presidents. 

(v) Tanana Chiefs Conference. 

(vi) Cook Inlet Tribal Council. 

(vii) Bristol Bay Native Association. 

(viii) Aleutian and Pribilof Island Association. 

(ix) Chugachmuit. 

(x) Tlingit Haida Central Council. 

(xi) Kodiak Area Native Association. 

(xii) Copper River Native Association. 

145 

(5) STATE.—Except as otherwise specifically provided, the 

term ‘‘State’’ means the 50 States of the United States, the 

District of Columbia, the Commonwealth of Puerto Rico, the 

United States Virgin Islands, Guam, and American Samoa. 

(6) ASSISTANCE.—The term ‘‘assistance’’ means cash, payments, vouchers, and other forms of benefits designed to meet 

a family’s ongoing basic needs (such as for food, clothing, shelter, utilities, household goods, personal care items, and general 

incidental expenses). 

(7) WORK SUPPORTS.—The term ‘‘work supports’’ means assistance and non-assistance transportation benefits (such as the 

value of allowances, bus tokens, car payments, auto repair, auto 

insurance reimbursement, and van services provided in order to 

help families obtain, retain, or advance in employment, participate in work activities (as defined in section 407(d)), or as a 

non-recurrent, short-term benefit, including goods provided to 

individuals in order to help them obtain or maintain employment (such as tools, uniforms, fees to obtain special licenses, bonuses, incentives, and work support allowances and expenditures for job access). 

(8) SUPPORTIVE SERVICES.—The term ‘‘supportive services’’ 

means services such as domestic violence services, and mental 

health, substance abuse and disability services, housing counseling services, and other family supports, except to the extent 

that the provision of the service would violate section 408(a)(6). 

(9) JOBS BENEFIT.—The term ‘‘JOBS benefit’’ means— 

(A) assistance; or 

(B) wage subsidies that are paid, with funds provided 

under section 403(a) or with qualified State expenditures, 

with respect to a person who— 

(i) was a work-eligible individual (as defined in the 

regulations promulgated pursuant to section 

407(i)(1)(A)(i)) at the time of entry into subsidized employment, such as on-the-job training or apprenticeship; and 

(ii) is not receiving assistance. 

* * * * * * * 

PART D—CHILD SUPPORT AND ESTABLISHMENT OF PATERNITY

* * * * * * * 

DUTIES OF THE SECRETARY

SEC. 452. (a) The Secretary shall establish, within the Department of Health and Human Services a separate organizational 

unit, under the direction of a designee of the Secretary, who shall 

report directly to the Secretary and who shall— 

(1) establish such standards for State programs for locating 

noncustodial parents, establishing paternity, and obtaining 

child support and support for the spouse (or former spouse) 

with whom the noncustodial parent’s child is living as he determines to be necessary to assure that such programs will be 

effective; 

146 

(2) establish minimum organizational and staffing requirements for State units engaged in carrying out such programs 

under plans approved under this part; 

(3) review and approve State plans for such programs; 

(4)(A) review data and calculations transmitted by State 

agencies pursuant to section 454(15)(B) on State program accomplishments with respect to performance indicators for purposes of subsection (g) of this section and section 458; 

(B) review annual reports submitted pursuant to section 

454(15)(A) and, as appropriate, provide to the State comments, 

recommendations for additional or alternative corrective actions, and technical assistance; and 

(C) conduct audits, in accordance with the Government auditing standards of the Comptroller General of the United 

States— 

(i) at least once every 3 years (or more frequently, in the 

case of a State which fails to meet the requirements of this 

part concerning performance standards and reliability of 

program data) to assess the completeness, reliability, and 

security of the data and the accuracy of the reporting systems used in calculating performance indicators under 

subsection (g) of this section and section 458; 

(ii) of the adequacy of financial management of the State 

program operated under the State plan approved under 

this part, including assessments of— 

(I) whether Federal and other funds made available 

to carry out the State program are being appropriately 

expended, and are properly and fully accounted for; 

and 

(II) whether collections and disbursements of support payments are carried out correctly and are fully 

accounted for; and 

(iii) for such other purposes as the Secretary may find 

necessary; 

(5) assist States in establishing adequate reporting procedures and maintain records of the operations of programs established pursuant to this part in each State, and establish 

procedures to be followed by States for collecting and reporting 

information required to be provided under this part, and establish uniform definitions (including those necessary to enable 

the measurement of State compliance with the requirements of 

this part relating to expedited processes) to be applied in following such procedures; 

(6) maintain records of all amounts collected and disbursed 

under programs established pursuant to the provisions of this 

part and of the costs incurred in collecting such amounts; 

(7) provide technical assistance to the States to help them establish effective systems for collecting child and spousal support and establishing paternity, and specify the minimum requirements of an affidavit to be used for the voluntary acknowledgment of paternity which shall include the social security number of each parent and, after consultation with the 

States, other common elements as determined by such designee; 

147 

(8) receive applications from States for permission to utilize 

the courts of the United States to enforce court orders for support against noncustodial parents and, upon a finding that (A) 

another State has not undertaken to enforce the court order of 

the originating State against the noncustodial parent within a 

reasonable time, and (B) that utilization of the Federal courts 

is the only reasonable method of enforcing such order, approve 

such applications; 

(9) operate the Federal Parent Locator Service established by 

section 453; 

(10) not later than three months after the end of each fiscal 

year, beginning with the year 1977, submit to the Congress a 

full and complete report on all activities undertaken pursuant 

to the provisions of this part, which report shall include, but 

not be limited to, the following: 

(A) total program costs and collections set forth in sufficient detail to show the cost to the States and the Federal 

Government, the distribution of collections to families, 

State and local governmental units, and the Federal Government; and an identification of the financial impact of 

the provisions of this part, including— 

(i) the total amount of child support payments collected as a result of services furnished during the fiscal year to individuals receiving services under this 

part; 

(ii) the cost to the States and to the Federal Government of so furnishing the services; and 

(iii) the number of cases involving families— 

(I) who became ineligible for assistance under 

State programs funded under part A during a 

month in the fiscal year; and 

(II) with respect to whom a child support payment was received in the month; 

(B) costs and staff associated with the Office of Child 

Support Enforcement; 

(C) the following data, separately stated for cases where 

the child is receiving assistance under a State program 

funded under part A (or foster care maintenance payments 

under part E), or formerly received such assistance or payments and the State is continuing to collect support assigned to it pursuant to section 408(a)(3) or under section 

471(a)(17) or 1912, and for all other cases under this part: 

(i) the total number of cases in which a support obligation has been established in the fiscal year for 

which the report is submitted; 

(ii) the total number of cases in which a support obligation has been established; 

(iii) the number of cases in which support was collected during the fiscal year; 

(iv) the total amount of support collected during 

such fiscal year and distributed as current support; 

(v) the total amount of support collected during such 

fiscal year and distributed as arrearages; 

(vi) the total amount of support due and unpaid for 

all fiscal years; and 

148 

(vii) the number of child support cases filed in each 

State in such fiscal year, and the amount of the collections made in each State in such fiscal year, on behalf 

of children residing in another State or against parents residing in another State; 

(D) the status of all State plans under this part as of the 

end of the fiscal year last ending before the report is submitted, together with an explanation of any problems 

which are delaying or preventing approval of State plans 

under this part; 

(E) data, by State, on the use of the Federal Parent Locator Service, and the number of locate requests submitted 

without the noncustodial parent’s social security account 

number; 

(F) the number of cases, by State, in which an applicant 

for or recipient of assistance under a State program funded 

under part A has refused to cooperate in identifying and 

locating the noncustodial parent and the number of cases 

in which refusal so to cooperate is based on good cause (as 

determined by the State); 

(G) data, by State, on use of the Internal Revenue Service for collections, the number of court orders on which collections were made, the number of paternity determinations made and the number of parents located, in sufficient 

detail to show the cost and benefits to the States and to 

the Federal Government; 

(H) the major problems encountered which have delayed 

or prevented implementation of the provisions of this part 

during the fiscal year last ending prior to the submission 

of such report; and 

(I) compliance, by State, with the standards established 

pursuant to subsections (h) and (i); and 

(11) not later than October 1, 1996, after consulting with the 

State directors of programs under this part, promulgate forms 

to be used by States in interstate cases for— 

(A) collection of child support through income withholding; 

(B) imposition of liens; and 

(C) administrative subpoenas. 

(b) The Secretary shall, upon the request of any State having in 

effect a State plan approved under this part, certify to the Secretary of the Treasury for collection pursuant to the provisions of 

section 6305 of the Internal Revenue Code of 1954 the amount of 

any child support obligation (including any support obligation with 

respect to the parent who is living with the child and receiving assistance under the State program funded under part A) which is 

assigned to such State or is undertaken to be collected by such 

State pursuant to section 454(4). No amount may be certified for 

collection under this subsection except the amount of the delinquency under a court or administrative order for support and upon 

a showing by the State that such State has made diligent and reasonable efforts to collect such amounts utilizing its own collection 

mechanisms, and upon an agreement that the State will reimburse 

the Secretary of the Treasury for any costs involved in making the 

collection. All reimbursements shall be credited to the appropriaVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00148 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
149 

tion accounts which bore all or part of the costs involved in making 

the collections. The Secretary after consultation with the Secretary 

of the Treasury may, by regulation, establish criteria for accepting 

amounts for collection and for making certification under this subsection including imposing such limitations on the frequency of 

making such certifications under this subsection. 

(c) The Secretary of the Treasury shall from time to time pay to 

each State for distribution in accordance with the provisions of section 457 the amount of each collection made on behalf of such State 

pursuant to subsection (b). 

(d)(1) Except as provided in paragraph (3), the Secretary shall 

not approve the initial and annually updated advance automated 

data processing planning document, referred to in section 454(16), 

unless he finds that such document, when implemented, will generally carry out the objectives of the management system referred 

to in such subsection, and such document 

(A) provides for the conduct of, and reflects the results of, requirements analysis studies, which include consideration of the 

program mission, functions, organization, services, constraints, 

and current support, of, in, or relating to, such system, 

(B) contains a description of the proposed management system referred to in section 454(16), including a description of information flows, input data, and output reports and uses, 

(C) sets forth the security and interface requirements to be 

employed in such management system, 

(D) describes the projected resource requirements for staff 

and other needs, and the resources available or expected to be 

available to meet such requirements, 

(E) contains an implementation plan and backup procedures 

to handle possible failures, 

(F) contains a summary of proposed improvement of such 

management system in terms of qualitative and quantitative 

benefits, and 

(G) provides such other information as the Secretary determines under regulation is necessary. 

(2)(A) The Secretary shall through the separate organizational 

unit established pursuant to subsection (a), on a continuing basis, 

review, assess, and inspect the planning, design, and operation of, 

management information systems referred to in section 454(16), 

with a view to determining whether, and to what extent, such systems meet and continue to meet requirements imposed under paragraph (1) and the conditions specified under section 454(16). 

(B) If the Secretary finds with respect to any statewide management information system referred to in section 454(16) that there 

is a failure substantially to comply with criteria, requirements, and 

other undertakings, prescribed by the advance automated data 

processing planning document theretofore approved by the Secretary with respect to such system, then the Secretary shall suspend his approval of such document until there is no longer any 

such failure of such system to comply with such criteria, requirements, and other undertakings so prescribed. 

(3) The Secretary may waive any requirement of paragraph (1) 

or any condition specified under section 454(16), and shall waive 

the single statewide system requirement under sections 454(16) 

and 454A, with respect to a State if— 

150 

(A) the State demonstrates to the satisfaction of the Secretary that the State has or can develop an alternative system 

or systems that enable the State— 

(i) for purposes of section ø409(a)(8)¿ 409(a)(7), to 

achieve the paternity establishment percentages (as defined in section 452(g)(2)) and other performance measures 

that may be established by the Secretary; 

(ii) to submit data under section 454(15)(B) that is complete and reliable; 

(iii) to substantially comply with the requirements of 

this part; and 

(iv) in the case of a request to waive the single statewide 

system requirement, to— 

(I) meet all functional requirements of sections 

454(16) and 454A; 

(II) ensure that calculation of distributions meets 

the requirements of section 457 and accounts for 

distributions to children in different families or in 

different States or sub-State jurisdictions, and for distributions to other States; 

(III) ensure that there is only one point of contact in 

the State which provides seamless case processing for 

all interstate case processing and coordinated, automated intrastate case management; 

(IV) ensure that standardized data elements, forms, 

and definitions are used throughout the State; 

(V) complete the alternative system in no more time 

than it would take to complete a single statewide system that meets such requirement; and 

(VI) process child support cases as quickly, 

efficiently, and effectively as such cases would be processed through a single statewide system that meets 

such requirement; 

(B)(i) the waiver meets the criteria of paragraphs (1), (2), 

and (3) of section 1115(c); or 

(ii) the State provides assurances to the Secretary that steps 

will be taken to otherwise improve the State’s child support enforcement program; and 

(C) in the case of a request to waive the single statewide system requirement, the State has submitted to the Secretary separate estimates of the total cost of a single statewide system 

that meets such requirement, and of any such alternative system or systems, which shall include estimates of the cost of developing and completing the system and of operating and 

maintaining the system for 5 years, and the Secretary has 

agreed with the estimates. 

(e) The Secretary shall provide such technical assistance to 

States as he determines necessary to assist States to plan, design, 

develop, or install and provide for the security of, the management 

information systems referred to in section 454(16). 

(f) The Secretary shall issue regulations to require that State 

agencies administering the child support enforcement program 

under this part enforce medical support included as part of a child 

support order whenever health care coverage is available to the 

noncustodial parent at a reasonable cost. A State agency adminVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00150 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
151 

istering the program under this part may enforce medical support 

against a custodial parent if health care coverage is available to 

the custodial parent at a reasonable cost, notwithstanding any 

other provision of this part. Such regulation shall also provide for 

improved information exchange between such State agencies and 

the State agencies administering the State medicaid programs 

under title XIX with respect to the availability of health insurance 

coverage. For purposes of this part, the term ‘‘medical support’’ 

may include health care coverage, such as coverage under a health 

insurance plan (including payment of costs of premiums, co-payments, and deductibles) and payment for medical expenses incurred on behalf of a child. 

(g)(1) A State’s program under this part shall be found, for purposes of section ø409(a)(8)¿ 409(a)(7), not to have complied substantially with the requirements of this part unless, for any fiscal 

year beginning on or after October 1, 1994, its paternity establishment percentage for such fiscal year is based on reliable data and 

(rounded to the nearest whole percentage point) equals or exceeds— 

(A) 90 percent; 

(B) for a State with a paternity establishment percentage of 

not less than 75 percent but less than 90 percent for such fiscal year, the paternity establishment percentage of the State 

for the immediately preceding fiscal year plus 2 percentage 

points; 

(C) for a State with a paternity establishment percentage of 

not less than 50 percent but less than 75 percent for such fiscal year, the paternity establishment percentage of the State 

for the immediately preceding fiscal year plus 3 percentage 

points; 

(D) for a State with a paternity establishment percentage of 

not less than 45 percent but less than 50 percent for such fiscal year, the paternity establishment percentage of the State 

for the immediately preceding fiscal year plus 4 percentage 

points; 

(E) for a State with a paternity establishment percentage of 

not less than 40 percent but less than 45 percent for such fiscal year, the paternity establishment percentage of the State 

for the immediately preceding fiscal year plus 5 percentage 

points; or 

(F) for a State with a paternity establishment percentage of 

less than 40 percent for such fiscal year, the paternity establishment percentage of the State for the immediately preceding 

fiscal year plus 6 percentage points. 

In determining compliance under this section, a State may use as 

its paternity establishment percentage either the State’s IV–D paternity establishment percentage (as defined in paragraph (2)(A)) 

or the State’s statewide paternity establishment percentage (as defined in paragraph (2)(B)). 

(2) For purposes of this section— 

(A) the term ‘‘IV–D paternity establishment percentage’’ 

means, with respect to a State for a fiscal year, the ratio (expressed as a percentage) that the total number of children— 

(i) who have been born out of wedlock, 

152 

(ii)(I) except as provided in the last sentence of this 

paragraph, with respect to whom assistance is being provided under the State program funded under part A in the 

fiscal year or, at the option of the State, as of the end of 

such year, or (II) with respect to whom services are being 

provided under the State’s plan approved under this part 

in the fiscal year or, at the option of the State, as of the 

end of such year pursuant to an application submitted 

under section 454(4)(A)(ii), and 

(iii) the paternity of whom has been established or acknowledged, 

bears to the total number of children born out of wedlock and 

(except as provided in such last sentence) with respect to 

whom assistance was being provided under the State program 

funded under part A as of the end of the preceding fiscal year 

or with respect to whom services were being provided under 

the State’s plan approved under this part as of the end of the 

preceding fiscal year pursuant to an application submitted 

under section 454(4)(A)(ii); 

(B) the term ‘‘statewide paternity establishment percentage’’ 

means, with respect to a State for a fiscal year, the ratio (expressed as a percentage) that the total number of minor children— 

(i) who have been born out of wedlock, and 

(ii) the paternity of whom has been established or acknowledged during the fiscal year, 

bears to the total number of children born out of wedlock during the preceding fiscal year; and 

(C) the term ‘‘reliable data’’ means the most recent data 

available which are found by the Secretary to be reliable for 

purposes of this section. 

For purposes of subparagraphs (A) and (B), the total number of 

children shall not include any child with respect to whom assistance is being provided under the State program funded under part 

A by reason of the death of a parent unless paternity is established 

for such child or any child with respect to whom an applicant or 

recipient is found by the State to qualify for a good cause or other 

exception to cooperation pursuant to section 454(29). 

(3)(A) The Secretary may modify the requirements of this subsection to take into account such additional variables as the Secretary identifies (including the percentage of children in a State 

who are born out of wedlock or for whom support has not been established) that affect the ability of a State to meet the requirements of this subsection. 

(B) The Secretary shall submit an annual report to the Congress 

that sets forth the data upon which the paternity establishment 

percentages for States for a fiscal year are based, lists any additional variables the Secretary has identified under subparagraph 

(A), and describes State performance in establishing paternity. 

(h) The standards required by subsection (a)(1) shall include 

standards establishing time limits governing the period or periods 

within which a State must accept and respond to requests (from 

States, jurisdictions thereof, or individuals who apply for services 

furnished by the State agency under this part or with respect to 

whom an assignment pursuant to section 408(a)(3) is in effect) for 

153 

assistance in establishing and enforcing support orders, including 

requests to locate noncustodial parents, establish paternity, and 

initiate proceedings to establish and collect child support awards. 

(i) The standards required by subsection (a)(1) shall include 

standards establishing time limits governing the period or periods 

within which a State must distribute, in accordance with section 

457, amounts collected as child support pursuant to the State’s 

plan approved under this part. 

(j) Out of any money in the Treasury of the United States not 

otherwise appropriated, there is hereby appropriated to the Secretary for each fiscal year an amount equal to 1 percent of the total 

amount paid to the Federal Government pursuant to a plan approved under this part during the immediately preceding fiscal 

year (as determined on the basis of the most recent reliable data 

available to the Secretary as of the end of the third calendar quarter following the end of such preceding fiscal year) or the amount 

appropriated under this paragraph for fiscal year 2002, whichever 

is greater, which shall be available for use by the Secretary, either 

directly or through grants, contracts, or interagency agreements, 

for— 

(1) information dissemination and technical assistance to 

States, training of State and Federal staff, staffing studies, and 

related activities needed to improve programs under this part 

(including technical assistance concerning State automated 

systems required by this part); and 

(2) research, demonstration, and special projects of regional 

or national significance relating to the operation of State programs under this part. 

The amount appropriated under this subsection shall remain available until expended. 

(k)(1) If the Secretary receives a certification by a State agency 

in accordance with the requirements of section 454(31) that an individual owes arrearages of child support in an amount exceeding 

$2,500, the Secretary shall transmit such certification to the Secretary of State for action (with respect to denial, revocation, or limitation of passports) pursuant to paragraph (2). 

(2) The Secretary of State shall, upon certification by the Secretary transmitted under paragraph (1), refuse to issue a passport 

to such individual, and may revoke, restrict, or limit a passport 

issued previously to such individual. 

(3) The Secretary and the Secretary of State shall not be liable 

to an individual for any action with respect to a certification by a 

State agency under this section. 

(l) The Secretary, through the Federal Parent Locator Service, 

may aid State agencies providing services under State programs 

operated pursuant to this part and financial institutions doing 

business in two or more States in reaching agreements regarding 

the receipt from such institutions, and the transfer to the State 

agencies, of information that may be provided pursuant to section 

466(a)(17)(A)(i), except that any State that, as of the date of the enactment of this subsection, is conducting data matches pursuant to 

section 466(a)(17)(A)(i) shall have until January 1, 2000, to allow 

the Secretary to obtain such information from such institutions 

that are operating in the State. For purposes of section 1113(d) of 

the Right to Financial Privacy Act of 1978, a disclosure pursuant 

154 

to this subsection shall be considered a disclosure pursuant to a 

Federal statute. 

(m) COMPARISONS WITH INSURANCE INFORMATION.— (1) IN GENERAL.—The Secretary, through the Federal Parent 

Locator Service, may— 

(A) compare information concerning individuals owing 

past-due support with information maintained by insurers 

(or their agents) concerning insurance claims, settlements, 

awards, and payments; and 

(B) furnish information resulting from the data matches 

to the State agencies responsible for collecting child support from the individuals. 

(2) LIABILITY.—An insurer (including any agent of an insurer) shall not be liable under any Federal or State law to any 

person for any disclosure provided for under this subsection, or 

for any other action taken in good faith in accordance with this 

subsection. 

(n) The Secretary shall use the authorities otherwise provided by 

law to ensure the compliance of the United States with any multilateral child support convention to which the United States is a 

party. 

(o) DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPER- ABILITY.— 

(1) DESIGNATION.—The Secretary shall, in consultation with 

an interagency work group established by the Office of Management and Budget and considering State government perspectives, by rule, designate data exchange standards to govern, under this part— 

(A) necessary categories of information that State agencies operating programs under State plans approved under 

this part are required under applicable Federal law to electronically exchange with another State agency; and 

(B) Federal reporting and data exchange required under 

applicable Federal law. 

(2) REQUIREMENTS.—The data exchange standards required 

by paragraph (1) shall, to the extent practicable— 

(A) incorporate a widely accepted, non-proprietary, 

searchable, computer-readable format, such as the eXtensible Markup Language; 

(B) contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model; 

(C) incorporate interoperable standards developed and 

maintained by Federal entities with authority over contracting and financial assistance; 

(D) be consistent with and implement applicable accounting principles; 

(E) be implemented in a manner that is cost-effective 

and improves program efficiency and effectiveness; and 

(F) be capable of being continually upgraded as necessary. 

(3) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to require a change to existing data exchange standards found to be effective and efficient. 

* * * * * * * 

155 

SEC. 454A. AUTOMATED DATA PROCESSING. 

(a) IN GENERAL.—In order for a State to meet the requirements 

of this section, the State agency administering the State program 

under this part shall have in operation a single statewide automated data processing and information retrieval system which has 

the capability to perform the tasks specified in this section with the 

frequency and in the manner required by or under this part. 

(b) PROGRAM MANAGEMENT.—The automated system required by 

this section shall perform such functions as the Secretary may 

specify relating to management of the State program under this 

part, including— 

(1) controlling and accounting for use of Federal, State, and 

local funds in carrying out the program; and 

(2) maintaining the data necessary to meet Federal reporting 

requirements under this part on a timely basis. 

(c) CALCULATION OF PERFORMANCE INDICATORS.—In order to enable the Secretary to determine the incentive payments and penalty adjustments required by sections 452(g) and 458, the State 

agency shall— 

(1) use the automated system— 

(A) to maintain the requisite data on State performance 

with respect to paternity establishment and child support 

enforcement in the State; and 

(B) to calculate the paternity establishment percentage 

for the State for each fiscal year; and 

(2) have in place systems controls to ensure the completeness and reliability of, and ready access to, the data described in paragraph (1)(A), and the accuracy of the calculations described in paragraph (1)(B). 

(d) INFORMATION INTEGRITY AND SECURITY.—The State agency 

shall have in effect safeguards on the integrity, accuracy, and completeness of, access to, and use of data in the automated system required by this section, which shall include the following (in addition to such other safeguards as the Secretary may specify in regulations): 

(1) POLICIES RESTRICTING ACCESS.—Written policies concerning access to data by State agency personnel, and sharing 

of data with other persons, which— 

(A) permit access to and use of data only to the extent 

necessary to carry out the State program under this part; 

and 

(B) specify the data which may be used for particular 

program purposes, and the personnel permitted access to 

such data. 

(2) SYSTEMS CONTROLS.—Systems controls (such as passwords or blocking of fields) to ensure strict adherence to the 

policies described in paragraph (1). 

(3) MONITORING OF ACCESS.—Routine monitoring of access to 

and use of the automated system, through methods such as 

audit trails and feedback mechanisms, to guard against and 

promptly identify unauthorized access or use. 

(4) TRAINING AND INFORMATION.—Procedures to ensure that 

all personnel (including State and local agency staff and contractors) who may have access to or be required to use confidential program data are informed of applicable requirements 

156 

and penalties (including those in section 6103 of the Internal 

Revenue Code of 1986), and are adequately trained in security 

procedures. 

(5) PENALTIES.—Administrative penalties (up to and including dismissal from employment) for unauthorized access to, or 

disclosure or use of, confidential data. 

(e) STATE CASE REGISTRY.— (1) CONTENTS.—The automated system required by this section shall include a registry (which shall be known as the 

‘‘State case registry’’) that contains records with respect to— 

(A) each case in which services are being provided by the 

State agency under the State plan approved under this 

part; and 

(B) each support order established or modified in the 

State on or after October 1, 1998. 

(2) LINKING OF LOCAL REGISTRIES.—The State case registry 

may be established by linking local case registries of support 

orders through an automated information network, subject to 

this section. 

(3) USE OF STANDARDIZED DATA ELEMENTS.—Such records 

shall use standardized data elements for both parents (such as 

names, social security numbers and other uniform identification numbers, dates of birth, and case identification numbers), 

and contain such other information (such as on case status) as 

the Secretary may require. 

(4) PAYMENT RECORDS.—Each case record in the State case 

registry with respect to which services are being provided 

under the State plan approved under this part and with respect to which a support order has been established shall include a record of— 

(A) the amount of monthly (or other periodic) support 

owed under the order, and other amounts (including arrearages, interest or late payment penalties, and fees) due 

or overdue under the order; 

(B) any amount described in subparagraph (A) that has 

been collected; 

(C) the distribution of such collected amounts; 

(D) the birth date and, beginning not later than October 

1, 1999, the social security number, of any child for whom 

the order requires the provision of support; and 

(E) the amount of any lien imposed with respect to the 

order pursuant to section 466(a)(4). 

(5) UPDATING AND MONITORING.—The State agency operating 

the automated system required by this section shall promptly 

establish and update, maintain, and regularly monitor, case 

records in the State case registry with respect to which services are being provided under the State plan approved under 

this part, on the basis of— 

(A) information on administrative actions and administrative and judicial proceedings and orders relating to paternity and support; 

(B) information obtained from comparison with Federal, 

State, or local sources of information; 

(C) information on support collections and distributions; 

and 

157 

(D) any other relevant information. 

(f) INFORMATION COMPARISONS AND OTHER DISCLOSURES OF IN- FORMATION.—The State shall use the automated system required 

by this section to extract information from (at such times, and in 

such standardized format or formats, as may be required by the 

Secretary), to share and compare information with, and to receive 

information from, other data bases and information comparison 

services, in order to obtain (or provide) information necessary to 

enable the State agency (or the Secretary or other State or Federal 

agencies) to carry out this part, subject to section 6103 of the Internal Revenue Code of 1986. Such information comparison activities 

shall include the following: 

(1) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.— 

Furnishing to the Federal Case Registry of Child Support Orders established under section 453(h) (and update as necessary, with information including notice of expiration of orders) the minimum amount of information on child support 

cases recorded in the State case registry that is necessary to 

operate the registry (as specified by the Secretary in regulations). 

(2) FEDERAL PARENT LOCATOR SERVICE.—Exchanging information with the Federal Parent Locator Service for the purposes specified in section 453. 

(3) TEMPORARY FAMILY ASSISTANCE AND MEDICAID AGEN- CIES.—Exchanging information with State agencies (of the 

State and of other States) administering programs funded 

under part A, programs operated under a State plan approved 

under title XIX, and other programs designated by the Secretary, as necessary to perform State agency responsibilities 

under this part and under such programs. 

(4) INTRASTATE AND INTERSTATE INFORMATION COMPARISONS.—Exchanging information with other agencies of the 

State, agencies of other States, and interstate information networks, as necessary and appropriate to carry out (or assist 

other States to carry out) the purposes of this part. 

ø(5) PRIVATE INDUSTRY COUNCILS RECEIVING WELFARE-TO- WORK GRANTS.—Disclosing to a private industry council (as defined in section 403(a)(5)(D)(ii)) to which funds are provided 

under section 403(a)(5) the names, addresses, telephone numbers, and identifying case number information in the State program funded under part A, 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 section 403(a)(5).¿ 

(g) COLLECTION AND DISTRIBUTION OF SUPPORT PAYMENTS.— 

(1) IN GENERAL.—The State shall use the automated system 

required by this section to assist and facilitate the collection 

and disbursement of support payments through the State disbursement unit operated under section 454B, through the performance of functions, including, at a minimum— 

(A) transmission of orders and notices to employers (and 

other debtors) for the withholding of income— 

(i) within 2 business days after receipt of notice of, 

and the income source subject to, such withholding 

from a court, another State, an employer, the Federal 

158 

Parent Locator Service, or another source recognized 

by the State; 

(ii) using uniform formats prescribed by the Secretary; and 

(iii) at the option of the employer, using the electronic transmission methods prescribed by the Secretary; 

(B) ongoing monitoring to promptly identify failures to 

make timely payment of support; and 

(C) automatic use of enforcement procedures (including 

procedures authorized pursuant to section 466(c)) if payments are not timely made. 

(2) BUSINESS DAY DEFINED.—As used in paragraph (1), the 

term ‘‘business day’’ means a day on which State offices are 

open for regular business. 

(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—The automated 

system required by this section shall be used, to the maximum extent feasible, to implement the expedited administrative procedures 

required by section 466(c). 

* * * * * * * 

PART E—FEDERAL PAYMENTS FOR FOSTER 

CARE, PREVENTION, AND PERMANENCY 

* * * * * * * 

STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE

SEC. 471. (a) In order for a State to be eligible for payments 

under this part, it shall have a plan approved by the Secretary 

which— 

(1) provides for foster care maintenance payments in accordance with section 472 and for adoption assistance in accordance with section 473; 

(2) provides that the State agency responsible for administering the program authorized by subpart 1 of part B of this 

title shall administer, or supervise the administration of, the 

program authorized by this part; 

(3) provides that the plan shall be in effect in all political 

subdivisions of the State, and, if administered by them, be 

mandatory upon them; 

(4) provides that the State shall assure that the programs at 

the local level assisted under this part will be coordinated with 

the programs at the State or local level assisted under parts 

A and B of this title, under subtitle 1 of title XX of this Act, 

and under any other appropriate provision of Federal law; 

(5) provides that the State will, in the administration of its 

programs under this part, use such methods relating to the establishment and maintenance of personnel standards on a 

merit basis as are found by the Secretary to be necessary for 

the proper and efficient operation of the programs, except that 

the Secretary shall exercise no authority with respect to the selection, tenure of office, or compensation of any individual employed in accordance with such methods; 

159 

(6) provides that the State agency referred to in paragraph 

(2) (hereinafter in this part referred to as the ‘‘State agency’’) 

will make such reports, in such form and containing such information as the Secretary may from time to time require, and 

comply with such provisions as the Secretary may from time 

to time find necessary to assure the correctness and 

verification of such reports; 

(7) provides that the State agency will monitor and conduct 

periodic evaluations of activities carried out under this part; 

(8) subject to subsection (c), provides safeguards which restrict the use of or disclosure of information concerning individuals assisted under the State plan to purposes directly connected with (A) the administration of the plan of the State approved under this part, the plan or program of the State under 

part A, B, or D of this title or under title I, V, X, XIV, XVI 

(as in effect in Puerto Rico, Guam, and the Virgin Islands), 

XIX, or XX, the program established by title II, or the supplemental security income program established by title XVI, (B) 

any investigation, prosecution, or criminal or civil proceeding, 

conducted in connection with the administration of any such 

plan or program, (C) the administration of any other Federal 

or federally assisted program which provides assistance, in 

cash or in kind, or services, directly to individuals on the basis 

of need, (D) any audit or similar activity conducted in connection with the administration of any such plan or program by 

any governmental agency which is authorized by law to conduct such audit or activity, and (E) reporting and providing information pursuant to paragraph (9) to appropriate authorities 

with respect to known or suspected child abuse or neglect; and 

the safeguards so provided shall prohibit disclosure, to any 

committee or legislative body (other than an agency referred to 

in clause (D) with respect to an activity referred to in such 

clause), of any information which identifies by name or address 

any such applicant or recipient; except that nothing contained 

herein shall preclude a State from providing standards which 

restrict disclosures to purposes more limited than those specified herein, or which, in the case of adoptions, prevent disclosure entirely; 

(9) provides that the State agency will— 

(A) report to an appropriate agency or official, known or 

suspected instances of physical or mental injury, sexual 

abuse or exploitation, or negligent treatment or maltreatment of a child receiving aid under part B or this part 

under circumstances which indicate that the child’s health 

or welfare is threatened thereby; 

(B) provide such information with respect to a situation 

described in subparagraph (A) as the State agency may 

have; and 

(C) not later than— 

(i) 1 year after the date of enactment of this subparagraph, demonstrate to the Secretary that the 

State agency has developed, in consultation with State 

and local law enforcement, juvenile justice systems, 

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dren and youth, policies and procedures (including relevant training for caseworkers) for identifying, documenting in agency records, and determining appropriate services with respect to— 

(I) any child or youth over whom the State 

agency has responsibility for placement, care, or 

supervision and who the State has reasonable 

cause to believe is, or is at risk of being, a sex 

trafficking victim (including children for whom a 

State child welfare agency has an open case file 

but who have not been removed from the home, 

children who have run away from foster care and 

who have not attained 18 years of age or such 

older age as the State has elected under section 

475(8) of this Act, and youth who are not in foster 

care but are receiving services under section 477 

of this Act); and 

(II) at the option of the State, any individual 

who has not attained 26 years of age, without regard to whether the individual is or was in foster 

care under the responsibility of the State; and 

(ii) 2 years after such date of enactment, demonstrate to the Secretary that the State agency is implementing the policies and procedures referred to in 

clause (i). 

(10) provides— 

(A) for the establishment or designation of a State authority or authorities that shall be responsible for establishing and maintaining standards for foster family homes 

and child care institutions which are reasonably in accord 

with recommended standards of national organizations 

concerned with standards for the institutions or homes, including standards related to admission policies, safety, 

sanitation, and protection of civil rights, and which shall 

permit use of the reasonable and prudent parenting standard; 

(B) that the standards established pursuant to subparagraph (A) shall be applied by the State to any foster family 

home or child care institution receiving funds under this 

part or part B and shall require, as a condition of each 

contract entered into by a child care institution to provide 

foster care, the presence on-site of at least 1 official who, 

with respect to any child placed at the child care institution, is designated to be the caregiver who is authorized to 

apply the reasonable and prudent parent standard to decisions involving the participation of the child in age or developmentally-appropriate activities, and who is provided 

with training in how to use and apply the reasonable and 

prudent parent standard in the same manner as prospective foster parents are provided the training pursuant to 

paragraph (24); 

(C) that the standards established pursuant to subparagraph (A) shall include policies related to the liability of 

foster parents and private entities under contract by the 

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161 

dent parent standard, to ensure appropriate liability for 

caregivers when a child participates in an approved activity and the caregiver approving the activity acts in accordance with the reasonable and prudent parent standard; 

and 

(D) that a waiver of any standards established pursuant 

to subparagraph (A) may be made only on a case-by-case 

basis for nonsafety standards (as determined by the State) 

in relative foster family homes for specific children in care; 

(11) provides for periodic review of the standards referred to 

in the preceding paragraph and amounts paid as foster care 

maintenance payments and adoption assistance to assure their 

continuing appropriateness; 

(12) provides for granting an opportunity for a fair hearing 

before the State agency to any individual whose claim for benefits available pursuant to this part is denied or is not acted 

upon with reasonable promptness; 

(13) provides that the State shall arrange for a periodic and 

independently conducted audit of the programs assisted under 

this part and part B of this title, which shall be conducted no 

less frequently than once every three years; 

(14) provides (A) specific goals (which shall be established by 

State law on or before October 1, 1982) for each fiscal year 

(commencing with the fiscal year which begins on October 1, 

1983) as to the maximum number of children (in absolute numbers or as a percentage of all children in foster care with respect to whom assistance under the plan is provided during 

such year) who, at any time during such year, will remain in 

foster care after having been in such care for a period in excess 

of twenty-four months, and (B) a description of the steps which 

will be taken by the State to achieve such goals; 

(15) provides that— 

(A) in determining reasonable efforts to be made with respect to a child, as described in this paragraph, and in 

making such reasonable efforts, the child’s health and 

safety shall be the paramount concern; 

(B) except as provided in subparagraph (D), reasonable 

efforts shall be made to preserve and reunify 

families— 

(i) prior to the placement of a child in foster care, to 

prevent or eliminate the need for removing the child 

from the child’s home; and 

(ii) to make it possible for a child to safely return to 

the child’s home; 

(C) if continuation of reasonable efforts of the type described in subparagraph (B) is determined to be inconsistent with the permanency plan for the child, reasonable 

efforts shall be made to place the child in a timely manner 

in accordance with the permanency plan (including, if appropriate, through an interstate placement), and to complete whatever steps are necessary to finalize the permanent placement of the child; 

(D) reasonable efforts of the type described in subparagraph (B) shall not be required to be made with respect to 

162 

a parent of a child if a court of competent jurisdiction has 

determined that— 

(i) the parent has subjected the child to aggravated 

circumstances (as defined in State law, which definition may include but need not be limited to abandonment, torture, chronic abuse, and sexual abuse); 

(ii) the parent has— 

(I) committed murder (which would have been 

an offense under section 1111(a) of title 18, United 

States Code, if the offense had occurred in the 

special maritime or territorial jurisdiction of the 

United States) of another child of the parent; 

(II) committed voluntary manslaughter (which 

would have been an offense under section 1112(a) 

of title 18, United States Code, if the offense had 

occurred in the special maritime or territorial jurisdiction of the United States) of another child of 

the parent; 

(III) aided or abetted, attempted, conspired, or 

solicited to commit such a murder or such a voluntary manslaughter; or 

(IV) committed a felony assault that results in 

serious bodily injury to the child or another child 

of the parent; or 

(iii) the parental rights of the parent to a sibling 

have been terminated involuntarily; 

(E) if reasonable efforts of the type described in subparagraph (B) are not made with respect to a child as a result 

of a determination made by a court of competent jurisdiction in accordance with subparagraph (D)— 

(i) a permanency hearing (as described in section 

475(5)(C)), which considers in-State and out-of-State 

permanent placement options for the child, shall be 

held for the child within 30 days after the determination; and 

(ii) reasonable efforts shall be made to place the 

child in a timely manner in accordance with the permanency plan, and to complete whatever steps are 

necessary to finalize the permanent placement of the 

child; and 

(F) reasonable efforts to place a child for adoption or 

with a legal guardian, including identifying appropriate inState and out-of-State placements may be made concurrently with reasonable efforts of the type described in subparagraph (B); 

(16) provides for the development of a case plan (as defined 

in section 475(1) and in accordance with the requirements of 

section 475A) for each child receiving foster care maintenance 

payments under the State plan and provides for a case review 

system which meets the requirements described in sections 

475(5) and 475A with respect to each such child; 

(17) provides that, where appropriate, all steps will be taken, 

including cooperative efforts with the State agencies administering the program funded under part A and plan approved 

under part D, to secure an assignment to the State of any 

163 

rights to support on behalf of each child receiving foster care 

maintenance payments under this part; 

(18) not later than January 1, 1997, provides that neither 

the State nor any other entity in the State that receives funds 

from the Federal Government and is involved in adoption or 

foster care placements may— 

(A) deny to any person the opportunity to become an 

adoptive or a foster parent, on the basis of the race, color, 

or national origin of the person, or of the child, involved; 

or 

(B) delay or deny the placement of a child for adoption 

or into foster care, on the basis of the race, color, or national origin of the adoptive or foster parent, or the child, 

involved; 

(19) provides that the State shall consider giving preference 

to an adult relative over a non-related caregiver when determining a placement for a child, provided that the relative caregiver meets all relevant State child protection standards; 

(20)(A) provides procedures for criminal records checks, including fingerprint-based checks of national crime information 

databases (as defined in section 534(e)(3)(A) of title 28, United 

States Code), for any prospective foster or adoptive parent before the foster or adoptive parent may be finally approved for 

placement of a child regardless of whether foster care maintenance payments or adoption assistance payments are to be 

made on behalf of the child under the State plan under this 

part, including procedures requiring that— 

(i) in any case involving a child on whose behalf such 

payments are to be so made in which a record check reveals a felony conviction for child abuse or neglect, for 

spousal abuse, for a crime against children (including child 

pornography), or for a crime involving violence, including 

rape, sexual assault, or homicide, but not including other 

physical assault or battery, if a State finds that a court of 

competent jurisdiction has determined that the felony was 

committed at any time, such final approval shall not be 

granted; and 

(ii) in any case involving a child on whose behalf such 

payments are to be so made in which a record check reveals a felony conviction for physical assault, battery, or a 

drug-related offense, if a State finds that a court of competent jurisdiction has determined that the felony was 

committed within the past 5 years, such final approval 

shall not be granted; and 

(B) provides that the State shall— 

(i) check any child abuse and neglect registry maintained by the State for information on any prospective foster or adoptive parent and on any other adult living in the 

home of such a prospective parent, and request any other 

State in which any such prospective parent or other adult 

has resided in the preceding 5 years, to enable the State 

to check any child abuse and neglect registry maintained 

by such other State for such information, before the prospective foster or adoptive parent may be finally approved 

for placement of a child, regardless of whether foster care 

164 

maintenance payments or adoption assistance payments 

are to be made on behalf of the child under the State plan 

under this part; 

(ii) comply with any request described in clause (i) that 

is received from another State; and 

(iii) have in place safeguards to prevent the unauthorized disclosure of information in any child abuse and neglect registry maintained by the State, and to prevent any 

such information obtained pursuant to this subparagraph 

from being used for a purpose other than the conducting 

of background checks in foster or adoptive placement 

cases; and 

(C) provides procedures for criminal records checks, including fingerprint-based checks of national crime information 

databases (as defined in section 534(e)(3)(A) of title 28, United 

States Code), on any relative guardian, and for checks described in subparagraph (B) of this paragraph on any relative 

guardian and any other adult living in the home of any relative guardian, before the relative guardian may receive kinship guardianship assistance payments on behalf of the child 

under the State plan under this part; 

(21) provides for health insurance coverage (including, at 

State option, through the program under the State plan approved under title XIX) for any child who has been determined 

to be a child with special needs, for whom there is in effect an 

adoption assistance agreement (other than an agreement under 

this part) between the State and an adoptive parent or parents, and who the State has determined cannot be placed with 

an adoptive parent or parents without medical assistance because such child has special needs for medical, mental health, 

or rehabilitative care, and that with respect to the provision of 

such health insurance coverage— 

(A) such coverage may be provided through 1 or more 

State medical assistance programs; 

(B) the State, in providing such coverage, shall ensure 

that the medical benefits, including mental health benefits, provided are of the same type and kind as those that 

would be provided for children by the State under title 

XIX; 

(C) in the event that the State provides such coverage 

through a State medical assistance program other than the 

program under title XIX, and the State exceeds its funding 

for services under such other program, any such child shall 

be deemed to be receiving aid or assistance under the 

State plan under this part for purposes of section 

1902(a)(10)(A)(i)(I); and 

(D) in determining cost-sharing requirements, the State 

shall take into consideration the circumstances of the 

adopting parent or parents and the needs of the child 

being adopted consistent, to the extent coverage is provided through a State medical assistance program, with 

the rules under such program; 

(22) provides that, not later than January 1, 1999, the State 

shall develop and implement standards to ensure that children 

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165 

vided quality services that protect the safety and health of the 

children; 

(23) provides that the State shall not— 

(A) deny or delay the placement of a child for adoption 

when an approved family is available outside of the jurisdiction with responsibility for handling the case of the 

child; or 

(B) fail to grant an opportunity for a fair hearing, as described in paragraph (12), to an individual whose allegation of a violation of subparagraph (A) of this paragraph 

is denied by the State or not acted upon by the State with 

reasonable promptness; 

(24) includes a certification that, before a child in foster care 

under the responsibility of the State is placed with prospective 

foster parents, the prospective foster parents will be prepared 

adequately with the appropriate knowledge and skills to provide for the needs of the child, that the preparation will be continued, as necessary, after the placement of the child, and that 

the preparation shall include knowledge and skills relating to 

the reasonable and prudent parent standard for the participation of the child in age or developmentally-appropriate activities, including knowledge and skills relating to the developmental stages of the cognitive, emotional, physical, and behavioral capacities of a child, and knowledge and skills relating to 

applying the standard to decisions such as whether to allow 

the child to engage in social, extracurricular, enrichment, cultural, and social activities, including sports, field trips, and 

overnight activities lasting 1 or more days, and to decisions involving the signing of permission slips and arranging of transportation for the child to and from extracurricular, enrichment, 

and social activities; 

(25) provide that the State shall have in effect procedures for 

the orderly and timely interstate placement of children; and 

procedures implemented in accordance with an interstate compact, if incorporating with the procedures prescribed by paragraph (26), shall be considered to satisfy the requirement of 

this paragraph; 

(26) provides that— 

(A)(i) within 60 days after the State receives from another State a request to conduct a study of a home environment for purposes of assessing the safety and suitability of placing a child in the home, the State shall, directly or by contract— 

(I) conduct and complete the study; and 

(II) return to the other State a report on the results 

of the study, which shall address the extent to which 

placement in the home would meet the needs of the 

child; and 

(ii) in the case of a home study begun on or before September 30, 2008, if the State fails to comply with clause 

(i) within the 60-day period as a result of circumstances 

beyond the control of the State (such as a failure by a Federal agency to provide the results of a background check, 

or the failure by any entity to provide completed medical 

forms, requested by the State at least 45 days before the 

166 

end of the 60-day period), the State shall have 75 days to 

comply with clause (i) if the State documents the circumstances involved and certifies that completing the 

home study is in the best interests of the child; except that 

(iii) this subparagraph shall not be construed to require 

the State to have completed, within the applicable period, 

the parts of the home study involving the education and 

training of the prospective foster or adoptive parents; 

(B) the State shall treat any report described in subparagraph (A) that is received from another State or an Indian tribe (or from a private agency under contract with 

another State) as meeting any requirements imposed by 

the State for the completion of a home study before placing 

a child in the home, unless, within 14 days after receipt 

of the report, the State determines, based on grounds that 

are specific to the content of the report, that making a decision in reliance on the report would be contrary to the 

welfare of the child; and 

(C) the State shall not impose any restriction on the 

ability of a State agency administering, or supervising the 

administration of, a State program operated under a State 

plan approved under this part to contract with a private 

agency for the conduct of a home study described in subparagraph (A); 

(27) provides that, with respect to any child in foster care 

under the responsibility of the State under this part or part B 

and without regard to whether foster care maintenance payments are made under section 472 on behalf of the child, the 

State has in effect procedures for verifying the citizenship or 

immigration status of the child; 

(28) at the option of the State, provides for the State to enter 

into kinship guardianship assistance agreements to provide 

kinship guardianship assistance payments on behalf of children to grandparents and other relatives who have assumed 

legal guardianship of the children for whom they have cared as 

foster parents and for whom they have committed to care on 

a permanent basis, as provided in section 473(d); 

(29) provides that, within 30 days after the removal of a 

child from the custody of the parent or parents of the child, the 

State shall exercise due diligence to identify and provide notice 

to the following relatives: all adult grandparents, all parents of 

a sibling of the child, where such parent has legal custody of 

such sibling, and other adult relatives of the child (including 

any other adult relatives suggested by the parents), subject to 

exceptions due to family or domestic violence, that— 

(A) specifies that the child has been or is being removed 

from the custody of the parent or parents of the child; 

(B) explains the options the relative has under Federal, 

State, and local law to participate in the care and placement of the child, including any options that may be lost 

by failing to respond to the notice; 

(C) describes the requirements under paragraph (10) of 

this subsection to become a foster family home and the additional services and supports that are available for children placed in such a home; and 

167 

(D) if the State has elected the option to make kinship 

guardianship assistance payments under paragraph (28) of 

this subsection, describes how the relative guardian of the 

child may subsequently enter into an agreement with the 

State under section 473(d) to receive the payments; 

(30) provides assurances that each child who has attained 

the minimum age for compulsory school attendance under 

State law and with respect to whom there is eligibility for a 

payment under the State plan is a full-time elementary or secondary school student or has completed secondary school, and 

for purposes of this paragraph, the term ‘‘elementary or secondary school student’’ means, with respect to a child, that the 

child is— 

(A) enrolled (or in the process of enrolling) in an institution which provides elementary or secondary education, as 

determined under the law of the State or other jurisdiction 

in which the institution is located; 

(B) instructed in elementary or secondary education at 

home in accordance with a home school law of the State 

or other jurisdiction in which the home is located; 

(C) in an independent study elementary or secondary 

education program in accordance with the law of the State 

or other jurisdiction in which the program is located, 

which is administered by the local school or school district; 

or 

(D) incapable of attending school on a full-time basis due 

to the medical condition of the child, which incapability is 

supported by regularly updated information in the case 

plan of the child; 

(31) provides that reasonable efforts shall be made— 

(A) to place siblings removed from their home in the 

same foster care, kinship guardianship, or adoptive placement, unless the State documents that such a joint placement would be contrary to the safety or well-being of any 

of the siblings; and 

(B) in the case of siblings removed from their home who 

are not so jointly placed, to provide for frequent visitation 

or other ongoing interaction between the siblings, unless 

that State documents that frequent visitation or other ongoing interaction would be contrary to the safety or wellbeing of any of the siblings; 

(32) provides that the State will negotiate in good faith with 

any Indian tribe, tribal organization or tribal consortium in the 

State that requests to develop an agreement with the State to 

administer all or part of the program under this part on behalf 

of Indian children who are under the authority of the tribe, organization, or consortium, including foster care maintenance 

payments on behalf of children who are placed in State or tribally licensed foster family homes, adoption assistance payments, and, if the State has elected to provide such payments, 

kinship guardianship assistance payments under section 

473(d), and tribal access to resources for administration, training, and data collection under this part; 

(33) provides that the State will inform any individual who 

is adopting, or whom the State is made aware is considering 

168 

adopting, a child who is in foster care under the responsibility 

of the State of the potential eligibility of the individual for a 

Federal tax credit under section 23 of the Internal Revenue 

Code of 1986; 

(34) provides that, for each child or youth described in paragraph (9)(C)(i)(I), the State agency shall— 

(A) not later than 2 years after the date of the enactment of this paragraph, report immediately, and in no case 

later than 24 hours after receiving information on children 

or youth who have been identified as being a sex trafficking victim, to the law enforcement authorities; and 

(B) not later than 3 years after such date of enactment 

and annually thereafter, report to the Secretary the total 

number of children and youth who are sex trafficking victims; 

(35) provides that— 

(A) not later than 1 year after the date of the enactment 

of this paragraph, the State shall develop and implement 

specific protocols for— 

(i) expeditiously locating any child missing from foster care; 

(ii) determining the primary factors that contributed 

to the child’s running away or otherwise being absent 

from care, and to the extent possible and appropriate, 

responding to those factors in current and subsequent 

placements; 

(iii) determining the child’s experiences while absent 

from care, including screening the child to determine 

if the child is a possible sex trafficking victim (as defined in section 475(9)(A)); and 

(iv) reporting such related information as required 

by the Secretary; and 

(B) not later than 2 years after such date of enactment, 

for each child and youth described in paragraph (9)(C)(i)(I) 

of this subsection, the State agency shall report immediately, and in no case later than 24 hours after receiving, 

information on missing or abducted children or youth to 

the law enforcement authorities for entry into the National 

Crime Information Center (NCIC) database of the Federal 

Bureau of Investigation, established pursuant to section 

534 of title 28, United States Code, and to the National 

Center for Missing and Exploited Children; 

(36) provides that, not later than April 1, 2019, the State 

shall submit to the Secretary information addressing— 

(A) whether the State licensing standards are in accord 

with model standards identified by the Secretary, and if 

not, the reason for the specific deviation and a description 

as to why having a standard that is reasonably in accord 

with the corresponding national model standards is not appropriate for the State; 

(B) whether the State has elected to waive standards established in 471(a)(10)(A) for relative foster family homes 

(pursuant to waiver authority provided by 471(a)(10)(D)), a 

description of which standards the State most commonly 

169 

waives, and if the State has not elected to waive the standards, the reason for not waiving these standards; 

(C) if the State has elected to waive standards specified 

in subparagraph (B), how caseworkers are trained to use 

the waiver authority and whether the State has developed 

a process or provided tools to assist caseworkers in 

waiving nonsafety standards per the authority provided in 

471(a)(10)(D) to quickly place children with relatives; and 

(D) a description of the steps the State is taking to improve caseworker training or the process, if any; and 

(b) The Secretary shall approve any plan which complies with the 

provisions of subsection (a) of this section. 

(c) USE OF CHILD WELFARE RECORDS IN STATE COURT PRO- CEEDINGS.—Subsection (a)(8) shall not be construed to limit the 

flexibility of a State in determining State policies relating to public 

access to court proceedings to determine child abuse and neglect or 

other court hearings held pursuant to part B or this part, except 

that such policies shall, at a minimum, ensure the safety and wellbeing of the child, parents, and family. 

(d) ANNUAL REPORTS BY THE SECRETARY ON NUMBER OF CHIL- DREN AND YOUTH REPORTED BY STATES TO BE SEX TRAFFICKING

VICTIMS.—Not later than 4 years after the date of the enactment 

of this subsection and annually thereafter, the Secretary shall report to the Congress and make available to the public on the Internet website of the Department of Health and Human Services the 

number of children and youth reported in accordance with subsection (a)(34)(B) of this section to be sex trafficking victims (as defined in section 475(9)(A)). 

øEffective on October 1, 2018, section 50711(a)(2) of division E of 

Public Law 115–123 amends section 471 by adding at the end a 

new subsection (e). Section 4(b)(3) of H.R. 5861 (as reported) provides for an amendment to section 471(e)(7)(B)(i) of the Social Security Act ‘‘as in effect pursuant to the amendment made by section 

50711(a)(2) of division E of the Bipartisan Budget Act of 2018 (Public Law 115–123)’’ as follow:¿ 

(e) PREVENTION AND FAMILY SERVICES AND PROGRAMS.— (1) * * * 

* * * * * * * 

(7) MAINTENANCE OF EFFORT FOR STATE FOSTER CARE PRE- VENTION EXPENDITURES.— (A) IN GENERAL.—If a State elects to provide services 

and programs specified in paragraph (1) for a fiscal year, 

the State foster care prevention expenditures for the fiscal 

year shall not be less than the amount of the expenditures 

for fiscal year 2014 (or, at the option of a State described 

in subparagraph (E), fiscal year 2015 or fiscal year 2016 

(whichever the State elects)). 

(B) STATE FOSTER CARE PREVENTION EXPENDITURES.— The term ‘‘State foster care prevention expenditures’’ 

means the following: 

(i) øTANF¿ JOBS; IV–B; SSBG.—State expenditures 

for foster care prevention services and activities under 

the State program funded under part A (including 

from amounts made available by the Federal Government), under the State plan developed under part B 

170 

(including any such amounts), or under the Social 

Services Block Grant Programs under subtitle A of 

title XX (including any such amounts). 

(ii) OTHER STATE PROGRAMS.—State expenditures for 

foster care prevention services and activities under 

any State program that is not described in clause (i) 

(other than any State expenditures for foster care prevention services and activities under the State program under this part (including under a waiver of the 

program)). 

(C) STATE EXPENDITURES.—The term ‘‘State expenditures’’ means all State or local funds that are expended by 

the State or a local agency including State or local funds 

that are matched or reimbursed by the Federal Government and State or local funds that are not matched or reimbursed by the Federal Government. 

(D) DETERMINATION OF PREVENTION SERVICES AND AC- TIVITIES.—The Secretary shall require each State that 

elects to provide services and programs specified in paragraph (1) to report the expenditures specified in subparagraph (B) for fiscal year 2014 and for such fiscal years 

thereafter as are necessary to determine whether the State 

is complying with the maintenance of effort requirement in 

subparagraph (A). The Secretary shall specify the specific 

services and activities under each program referred to in 

subparagraph (B) that are ‘‘prevention services and activities’’ for purposes of the reports. 

(E) STATE DESCRIBED.—For purposes of subparagraph 

(A), a State is described in this subparagraph if the population of children in the State in 2014 was less than 

200,000 (as determined by the United States Census Bureau). 

* * * * * * * 

TITLE XI—GENERAL PROVISIONS, PEER REVIEW, AND 

ADMINISTRATIVE SIMPLIFICATION 

PART A—GENERAL PROVISIONS

* * * * * * * 

SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, GUAM, AND AMERICAN SAMOA; LIMITATION ON 

TOTAL PAYMENTS. 

(a) LIMITATION ON TOTAL PAYMENTS TO EACH TERRITORY.— 

(1) IN GENERAL.—Notwithstanding any other provision of 

this Act (except for paragraph (2) of this subsection), the total 

amount certified by the Secretary of Health and Human Services under titles I, X, XIV, and XVI, under parts A and E of 

title IV, and under subsection (b) of this section, for payment 

to any territory for a fiscal year shall not exceed the ceiling 

amount for the territory for the fiscal year. 

(2) CERTAIN PAYMENTS DISREGARDED.—Paragraph (1) of this 

subsection shall be applied without regard to any payment 

made under section 403(a)(2), ø403(a)(4), 403(a)(5), 406,¿ or 

413(f). 

171 

(b) ENTITLEMENT TO MATCHING GRANT.— 

(1) IN GENERAL.—Each territory shall be entitled to receive 

from the Secretary for each fiscal year a grant in an amount 

equal to 75 percent of the amount (if any) by which— 

(A) the total expenditures of the territory during the fiscal year under the territory programs funded under parts 

A and E of title IV, including any amount paid to the State 

under part A of title IV that is transferred in accordance 

with section 404(d) and expended under the program to 

which transferred; exceeds 

(B) the sum of— 

(i) the amount of the family assistance grant payable to the territory without regard to section 409; and 

(ii) the total amount expended by the territory during fiscal year 1995 pursuant to parts A and F of title 

IV (as so in effect), other than for child care. 

(2) APPROPRIATION.—Out of any money in the Treasury of 

the United States not otherwise appropriated, there are appropriated for each of fiscal years ø2017 and 2018¿ 2019 through 

2023, such sums as are necessary for grants under this paragraph. 

(c) DEFINITIONS.—As used in this section: 

(1) TERRITORY.—The term ‘‘territory’’ means Puerto Rico, the 

Virgin Islands, Guam, and American Samoa. 

(2) CEILING AMOUNT.—The term ‘‘ceiling amount’’ means, 

with respect to a territory and a fiscal year, the mandatory 

ceiling amount with respect to the territory, reduced for the fiscal year in accordance with subsection (e), and reduced by the 

amount of any penalty imposed on the territory under any provision of law specified in subsection (a) during the fiscal year. 

(3) FAMILY ASSISTANCE GRANT.—The term ‘‘family assistance 

grant’’ has the meaning given such term by section 

403(a)(1)(B). 

(4) MANDATORY CEILING AMOUNT.—The term ‘‘mandatory 

ceiling amount’’ means— 

(A) $107,255,000 with respect to Puerto Rico; 

(B) $4,686,000 with respect to Guam; 

(C) $3,554,000 with respect to the Virgin 

Islands; and 

(D) $1,000,000 with respect to American Samoa. 

(5) TOTAL AMOUNT EXPENDED BY THE TERRITORY.—The term 

‘‘total amount expended by the territory’’— 

(A) does not include expenditures during the fiscal year 

from amounts made available by the Federal Government; 

and 

(B) when used with respect to fiscal year 1995, also does 

not include— 

(i) expenditures during fiscal year 1995 under subsection (g) or (i) of section 402 (as in effect on September 30, 1995); or 

(ii) any expenditures during fiscal year 1995 for 

which the territory (but for section 1108, as in effect 

on September 30, 1995) would have received reimbursement from the Federal Government. 

172 

(d) AUTHORITY TO TRANSFER FUNDS TO CERTAIN PROGRAMS.—A 

territory to which an amount is paid under subsection (b) of this 

section may use the amount in accordance with section 404(d). 

(f) Subject to subsection (g) and section 1935(e)(1)(B), the total 

amount certified by the Secretary under title XIX with respect to 

a fiscal year for payment to— (1) Puerto Rico shall not exceed (A) $116,500,000 for fiscal 

year 1994 and (B) for each succeeding fiscal year the amount 

provided in this paragraph for the preceding fiscal year increased by the percentage increase in the medical care component of the consumer price index for all urban consumers (as 

published by the Bureau of Labor Statistics) for the twelvemonth period ending in March preceding the beginning of the 

fiscal year, rounded to the nearest $100,000; (2) the Virgin Islands shall not exceed (A) $3,837,500 for fiscal year 1994, and (B) for each succeeding fiscal year the 

amount provided in this paragraph for the preceding fiscal 

year increased by the percentage increase referred to in paragraph (1)(B), rounded to the nearest $10,000; (3) Guam shall not exceed (A) $3,685,000 for fiscal year 

1994, and (B) for each succeeding fiscal year the amount provided in this paragraph for the preceding fiscal year increased 

by the percentage increase referred to in paragraph (1)(B), 

rounded to the nearest $10,000; 

(4) Northern Mariana Islands shall not exceed (A) $1,110,000 

for fiscal year 1994, and (B) for each succeeding fiscal year the 

amount provided in this paragraph for the preceding fiscal 

year increased by the percentage increase referred to in paragraph (1)(B), rounded to the nearest $10,000; and (5) American Samoa shall not exceed (A) $2,140,000 for fiscal 

year 1994, and (B) for each succeeding fiscal year the amount 

provided in this paragraph for the preceding fiscal year increased by the percentage increase referred to in paragraph 

(1)(B), rounded to the nearest $10,000. 

(g) MEDICAID PAYMENTS TO TERRITORIES FOR FISCAL YEAR 1998 

AND THEREAFTER.— (1) FISCAL YEAR 1998.—With respect to fiscal year 1998, the 

amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American 

Samoa under subsection (f) for such fiscal year shall be increased by the following amounts: (A) For Puerto Rico, $30,000,000. 

(B) For the Virgin Islands, $750,000. 

(C) For Guam, $750,000. 

(D) For the Northern Mariana Islands, $500,000. 

(E) For American Samoa, $500,000. 

(2) FISCAL YEAR 1999 AND THEREAFTER.—Notwithstanding 

subsection (f) and subject to and section 1323(a)(2) of the Patient Protection and Affordable Care Act paragraphs (3) and 

(5), with respect to fiscal year 1999 and any fiscal year thereafter, the total amount certified by the Secretary under title 

XIX for payment to— 

(A) Puerto Rico shall not exceed the sum of the amount 

provided in this subsection for the preceding fiscal year increased by the percentage increase in the medical care 

173 

component of the Consumer Price Index for all urban consumers (as published by the Bureau of Labor Statistics) for 

the 12-month period ending in March preceding the beginning of the fiscal year, rounded to the nearest $100,000; 

(B) the Virgin Islands shall not exceed the sum of the 

amount provided in this subsection for the preceding fiscal 

year increased by the percentage increase referred to in 

subparagraph (A), rounded to the nearest $10,000; 

(C) Guam shall not exceed the sum of the amount provided in this subsection for the preceding fiscal year increased by the percentage increase referred to in subparagraph (A), rounded to the nearest $10,000; 

(D) the Northern Mariana Islands shall not exceed the 

sum of the amount provided in this subsection for the preceding fiscal year increased by the percentage increase referred to in subparagraph (A), rounded to the nearest 

$10,000; and 

(E) American Samoa shall not exceed the sum of the 

amount provided in this subsection for the preceding fiscal 

year increased by the percentage increase referred to in 

subparagraph (A), rounded to the nearest $10,000. 

(3) FISCAL YEARS 2006 AND 2007 FOR CERTAIN INSULAR

AREAS.—The amounts otherwise determined under this subsection for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa for fiscal year 2006 

and fiscal year 2007 shall be increased by the following 

amounts: 

(A) For Puerto Rico, $12,000,000 for fiscal year 2006 and $12,000,000 for fiscal year 2007. (B) For the Virgin Islands, $2,500,000 for fiscal year 2006 and $5,000,000 for fiscal year 2007. (C) For Guam, $2,500,000 for fiscal year 2006 and $5,000,000 for fiscal year 2007. (D) For the Northern Mariana Islands, $1,000,000 for 

fiscal year 2006 and $2,000,000 for fiscal year 2007. 

(E) For American Samoa, $2,000,000 for fiscal year 2006 

and $4,000,000 for fiscal year 2007. 

Such amounts shall not be taken into account in applying 

paragraph (2) for fiscal year 2007 but shall be taken into account in applying such paragraph for fiscal year 2008 and subsequent fiscal years. 

(4) EXCLUSION OF CERTAIN EXPENDITURES FROM PAYMENT

LIMITS.—With respect to fiscal years beginning with fiscal year 

2009, if Puerto Rico, the Virgin Islands, Guam, the Northern 

Mariana Islands, or American Samoa qualify for a payment 

under subparagraph (A)(i), (B), or (F) of section 1903(a)(3) for 

a calendar quarter of such fiscal year, and with respect to fiscal years beginning with fiscal year 2017, if Puerto Rico qualifies for a payment under section 1903(a)(6) for a calendar quarter (beginning on or after July 1, 2017) of such fiscal year, and 

with respect to fiscal years beginning with fiscal year 2018, if 

the Virgin Islands qualifies for a payment under section 

1903(a)(6) for a calendar quarter (beginning on or after January 1, 2018) of such fiscal year, the payment shall not be taken 

into account in applying subsection (f) (as increased in accordVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00173 Fmt 6659 Sfmt 6601 E:\HR\OC\HR754.XXX HR754
174 

ance with paragraphs (1), (2), (3), and (4) of this subsection) to 

such commonwealth or territory for such fiscal year. 

(5) ADDITIONAL INCREASE.—(A) Subject to subparagraphs (B), 

(C), (D), and (E), the Secretary shall increase the amounts otherwise determined under this subsection for Puerto Rico, the 

Virgin Islands, Guam, the Northern Mariana Islands, and 

American Samoa (after the application of subsection (f) and the 

preceding paragraphs of this subsection) for the period beginning July 1, 2011, and ending on September 30, 2019, by such 

amounts that the total additional payments under title XIX to 

such territories equals $6,300,000,000 for such period. The Secretary shall increase such amounts in proportion to the 

amounts applicable to such territories under this subsection 

and subsection (f) on the date of enactment of this paragraph. 

(B) The amount of the increase otherwise provided under 

subparagraph (A) for Puerto Rico shall be further increased by 

$295,900,000. 

(C) Subject to subparagraphs (D) and (E), for the period beginning January 1, 2018, and ending September 30, 2019— 

(i) the amount of the increase otherwise provided under 

subparagraphs (A) and (B) for Puerto Rico shall be further 

increased by $3,600,000,000; and 

(ii) the amount of the increase otherwise provided under 

subparagraph (A) for the Virgin Islands shall be further 

increased by $106,931,000. 

(D) For the period described in subparagraph (C), the 

amount of the increase otherwise provided under subparagraph 

(A)— 

(i) for Puerto Rico shall be further increased by $1,200,000,000 if the Secretary certifies that Puerto Rico 

has taken reasonable and appropriate steps during such 

period, in accordance with a timeline established by the 

Secretary, to— 

(I) implement methods, satisfactory to the Secretary, 

for the collection and reporting of reliable data to the 

Transformed Medicaid Statistical Information System 

(T–MSIS) (or a successor system); and 

(II) demonstrate progress in establishing a State 

medicaid fraud control unit described in section 

1903(q); and 

(ii) for the Virgin Islands shall be further increased by $35,644,000 if the Secretary certifies that the Virgin Islands has taken reasonable and appropriate steps during 

such period, in accordance with a timeline established by 

the Secretary, to meet the conditions for certification specified in subclauses (I) and (II) of clause (i). 

(E) Notwithstanding any other provision of title XIX, during 

the period in which the additional funds provided under subparagraphs (C) and (D) are available for Puerto Rico and the 

Virgin Islands, respectively, with respect to payments from 

such additional funds for amounts expended by Puerto Rico 

and the Virgin Islands under such title, the Secretary shall increase the Federal medical assistance percentage or other rate 

that would otherwise apply to such payments to 100 percent. 

* * * * * * * 

(175) 

VII. DISSENTING VIEWS 

DISSENTING VIEWS ON JOBS AND OPPORTUNITY WITH 

BENEFITS AND SERVICES FOR SUCCESS ACT (H.R. 5861) 

Committee Democrats oppose H.R. 5861. This legislation represents a missed opportunity to help close the skills gap and help 

struggling parents get good jobs that will lift their families out of 

poverty. The bill makes zero new investments in education, training, apprenticeships, or career pathways programs that have been 

demonstrated to lead to good jobs. 

Millions of good jobs are going unfilled now, or will in the future, 

because workers lack the skills and supports to fill them. This bill 

does not provide a single penny of new investment in education, job 

training, or career pathways. Instead, the bill continues the freeze 

on Temporary Assistance for Needy Families (TANF) funding, 

which the Congressional Research Services estimates is 35 percent 

lower, in real terms, than it was in 1996. On average, states currently spend less than four percent of TANF funds on education 

and training. This bill gives them no reason to change that, since 

it would not measure how effective states are at increasing educational attainment needed for work. The TANF funding gap is not 

made up by other programs—formula funding for education and 

training provided through the Workforce Investment and Opportunity Act (WIOA) is currently $700 million below the authorized 

level, and fewer than a million Americans received job training or 

intensive career services in 2017. 

Democrats know that parents in our states and communities 

want to make better lives for their children. So, if they’re not taking advantage of good jobs that are available, it’s because they cannot. It is our job to give those parents real opportunities to get 

ahead. 

Instead of investing in helping families enter the middle class, 

the bill classifies nearly all parents and caregivers, including new 

moms and grandparents, as ‘‘work-eligible’’ and gives states expanded authority to reduce or eliminate benefits for the entire family if the adult does not fully comply with every provision of a plan 

developed by the state. Also, the bill’s very modest increase in child 

care funding is paid for by making TANF cuts in some states, making it a net loss for those states. 

Over 90 percent of families receiving TANF are single-parent 

households, and access to quality child care is critical to help them 

balance work and parenting. This legislation fails to even restore 

the number of child care slots to its 2006 level, and it limits the 

amount of TANF funding states can use to pay for quality child 

care. 

Even though over 13 million American children live in poverty, 

only 20 percent receive help from TANF. This bill does not even reVerDate Sep 11 2014 04:13 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00175 Fmt 6604 Sfmt 6604 E:\HR\OC\HR754.XXX HR754
176 

quire states to measure how effectively they are reducing poverty 

or helping poor children, let alone develop a plan to do so. 

At our Committee markup, Democrats offered a number of 

amendments that would have invested in effective local workforce 

development programs, quality child care, assistance for vulnerable 

children and grandparents, modernizing and expanding responsible 

fatherhood programs, and creating an emergency reserve fund to 

prepare for economic downturns. Those investments were fully paid 

for by very slightly reducing the windfall Republicans provided to 

corporations under their recent tax bill, which will add $2.3 trillion 

to our national debt over the next decade. The Majority refused to 

allow votes on the amendments. Democrats also offered amendments to remove the bill’s limits on state child care spending, develop a plan to eliminate child poverty, target more funding to 

work, child care, and family assistance, and measure state effectiveness in stabilizing families and helping parents get the degrees 

and credentials necessary for good jobs. 

Particularly at a time when Republicans are working diligently 

to cut off basic necessities like food, housing, and health care for 

millions of American parents, children, seniors, and people with 

disabilities, Committee Democrats cannot support TANF legislation 

that gives states more authority to cut off basic necessities and no 

additional resources to help families get ahead. 

RICHARD E. NEAL. 

SANDER M. LEVIN. 

JOHN LEWIS. 

MIKE THOMPSON. 

JOHN B. LARSON. 

EARL BLUMENAUER. 

BILL PASCRELL, Jr. 

JOSEPH CROWLEY. 

DANNY K. DAVIS. 

LINDA T. SA ́ NCHEZ. 

BRIAN HIGGINS. 

TERRI A. SEWELL. 

SUZAN DELBENE. 

JUDY CHU. 

(177) 

ADDITIONAL DISSENTING VIEWS ON JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES FOR SUCCESS 

ACT (H.R. 5861) 

In addition to the overall concerns outlined in the Democratic 

Dissenting Views that H.R. 5861 neglects to help struggling parents get good jobs to lift their families out of poverty, we express 

deep concerns that this bill: (1) ignores the needs of children—the 

primary beneficiaries of TANF; (2) fails to help vulnerable families 

with multiple barriers to employment, including parents with children with chronic health problems, parents struggling with addiction, returning citizens, grandparent caregivers, domestic and sexual violence victims, parents experiencing trauma, teen parents, 

and noncustodial fathers; and (3) lacks important safeguard to protect parents from inappropriate sanctions. 

This past April marked the 50th anniversary of the assassination 

of Dr. Martin Luther King, Jr. At the time of his assassination, Dr. 

King was focusing the civil rights movement on economic justice 

and the opportunity gap that exists in this country. If communities 

lack quality education, economic opportunity is limited. If communities lack transportation, affordable housing, and employers offering good jobs, economic opportunity is limited. If communities lack 

substance abuse services or job training programs economic opportunity is limited. It is our obligation to help states knock down the 

obstacles keeping people from work, not to vilify workers who have 

fallen on hard times and who need our help to overcome barriers. 

The needs of children. Aside from an empty promise to reduce 

child poverty, this bill ignores the children who are the primary 

TANF beneficiaries. Over two-thirds of TANF recipients are children and most are children under the age of 12, with a very large 

percent being young children under age 6. In 2017, only 1.4 million 

families received income support, and almost half of TANF cases 

were child-only. Millions of children live in poverty and receive 

nothing from TANF at all. It is inexcusable that nearly 20 percent 

of our children are condemned to grow up in poverty, with one out 

of every three Black, Latino, and Native American children living 

in poverty. The injustice of high child poverty rates in our nation 

is magnified by the tremendous suffering poverty inflicts on our 

youth, families, communities, and nation and by the reality that 

poverty exacts a greater toll on children of color. These disparities 

in early childhood have cumulative negative effects on lifelong 

learning, earnings, and health well into adulthood. New research 

finds that child poverty costs our economy over $1 trillion dollars 

each year. Reducing child poverty makes both moral and economic 

sense. 

Yet H.R. 5861 fails to advance meaningful efforts to reduce child 

poverty. Republicans rejected a no-cost amendment to enact evidence-based policies coordinated at the federal, state, and local levVerDate Sep 11 2014 04:56 Jun 26, 2018 Jkt 079006 PO 00000 Frm 00177 Fmt 6604 Sfmt 6604 E:\HR\OC\HR754.XXX HR754
178 

els to alleviate child poverty. Using this approach, the United Kingdom reduced their child poverty rate by 50 percent in a decade. By 

contrast, during this same time period, the U.S. child poverty rate 

increased by over 20 percent. 

Republicans also rejected an amendment to reduce child poverty 

by incenting states to provide basic assistance levels and supports 

to help stabilize struggling families with children. Research shows 

that an increase in family income of as little as $3,000 per year 

when a child is developing is associated with a 17 percent increase 

in the children’s future earnings. However, only one state provides 

basic assistance above the level of extreme poverty—or 50 percent 

of the Federal poverty level. Approximately half of states provide 

basic assistance at or below 25 percent of Federal poverty level. 

Further, many states immediately reduce benefits once parents 

begin working, pulling the rug out from under them and contributing to continued instability rather than giving families the foundation needed to enter and succeed in the workforce. Encouraging 

states to invest in assistance levels that help families work makes 

common sense and promises to improve child well-being and reduce 

child poverty. 

The needs of vulnerable families. In addition, H.R. 5861 fails to 

focus states on helping vulnerable families with significant barriers 

to employment, such as parents caring for children with chronic 

health conditions, parents struggling with addiction, returning citizens, grandparent caregivers, domestic and sexual violence victims, 

parents experiencing trauma, teen parents, and noncustodial fathers. 

Child health is a significant barrier to employment for poor, single mothers. For example, children in poverty are significantly 

more likely to experience chronic health problems, leading to unexpected and costly doctor visits that undermine work, especially lowlevel entry jobs. A recent study documents that children in poverty 

are much more likely to experience chronic health problems, such 

as asthma and Attention Deficit Hyperactivity Disorder (ADHD). 

Further, children living in extreme poverty who have asthma or 

ADHD are about twice as likely to have another chronic condition—like developmental delays, autism, depression, behavioral 

issues, speech/language difficulties, or epilepsy. Republicans rejected an amendment to give states the authority to develop modified employment plans for recipients caring for a family member 

with a disability or chronic health condition as well as to prohibit 

sanctions for caregivers if the work difficulties stemmed directly 

from their children’s health problems. A single mom does not decide when an asthma attack, diabetic complication, or sickle cell 

episode occurs. Allowing greater flexibility for caregivers to meet 

their children’s health needs without sanction is humane and helps 

parents remain engaged in the workforce. 

When our country struggles with opioid addiction, the Republican bill continues to exclude many people with substance abuse 

convictions from TANF. Even though millions of parents experience 

addiction, H.R. 5861 continues the policy of making it easier for 

states to exclude them from assistance by maintaining the lifetime 

ban for individuals with a felony drug conviction rather than to 

help them move forward and support their families. The federal 

179 

government should take the lead to convey to states that assisting 

individuals who have struggled with addiction to find work is important for the economic well-being of families and our nation. 

When we heard from witness after witness about the need to 

help returning citizens overcome their multiple barriers to employment, this bill fails to focus states on the complex needs of these 

potential workers. 

Further, this bill fails to remove the barriers faced by millions 

of family caregivers—like unrealistic work requirements, time limits and asset tests meant for younger workers, not for nearly-retired grandparents. Many Members on this Committee live in 

states with large numbers of kinship caregivers—states like Illinois, Texas, North Carolina, South Carolina and Tennessee. This 

bill ignores these caregivers. 

The Republican bill does not require states to improve their 

standards to address domestic and sexual violence among TANF 

participants. It also fails to acknowledge poverty-related traumas, 

such as discrimination, social isolation, housing instability, and 

community violence—often increasingly experienced by single, female-headed families. Nor does it lift the punitive bans on assistance to unwed teen parents who are not in school nor the ban on 

teens who are not living with an adult, leaving homeless youth and 

former foster youth out in the cold. 

Despite clear need, Republicans rejected an amendment to focus 

states on helping these vulnerable parents overcome their barriers 

to employment to achieve economic security. 

Although H.R. 5861 extends the authorization of the Fatherhood 

grants, the bill fails to modernize and expand these grants to provide workforce development to noncustodial fathers. Low-income fathers experience multiple challenges to contributing financially and 

emotionally to their children due to limited education and job 

skills, unstable employment opportunities, incarceration, and 

strained relationships with their children’s mothers. Helping remove employment barriers for noncustodial parents promises to 

promote economic well-being, reduce poverty, and increase laborforce participation. Improving the economic well-being of noncustodial parents promotes responsible fatherhood and helps these workers provide for their families. 

Fathers play a significant role in the development of their children, with research demonstrating that a supportive and involved 

father strengthens a child’s emotional, physical, intellectual, and 

behavioral development. Children with positive relationships with 

fathers—even if they do not live in the same household—have 

stronger mental health, economic success, and academic achievement with lower rates of youth delinquency, school drop-out, and 

teen pregnancy. Father engagement does not depend on living in 

the same house as one’s child, with many non-residential fathers 

being actively-involved with their children and supportive of their 

children’s mothers. Despite the importance of fathers emotionally 

and economically, Republicans rejected an amendment to increase 

the upward economic mobility of custodial and noncustodial fathers 

so they can actively participate in financial support and childrearing as well as maintain positive, healthy, and nonviolent relationships with their children and co-parents. 

180 

Protections for Families. H.R. 5861 also lacks essential due process protections to ensure that TANF recipients are not inappropriately denied, sanctioned, or kicked-off of benefits. Given that TANF 

primarily benefits children and given the severe consequences associated with denial or loss of benefits to impoverished families, it is 

reasonable to include basic protections to ensure fair treatment of 

applicants and recipients. For example, we should prohibit imposing life-time or whole-family sanctions in order to provide basic necessities to children. We should include a pre-sanction review process to ensure families will not lose benefits in error or due to lack 

of notice. Republicans rejected an amendment to include due process protections to safeguard fair treatment for vulnerable families 

with children. 

Given these concerns, we strongly oppose H.R. 5861. This legislation is too incomplete and fails to address the substantial problems 

with TANF facing low-income children and families in our communities—problems that contribute to child poverty and suffering and 

problems that disproportionately harm communities of color. We 

cannot support TANF legislation that fails to increase the economic 

security of vulnerable children and families, especially when Republicans are working to undermine that same security by cutting 

the basic necessities of food, housing, and healthcare for millions 

of struggling families. 

DANNY K. DAVIS. JOHN LEWIS. TERRI A. SEWELL. 

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