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[House Report 109-555]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-555

======================================================================

 
           CHILD AND FAMILY SERVICES IMPROVEMENT ACT OF 2006

                                _______
                                

 July 12, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Thomas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5640]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 5640) to amend part B of title IV of the Social 
Security Act to reauthorize the safe and stable families 
program, 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. Introduction......................................................8
        A. Purpose and Summary...................................     8
        B. Background and Need for Legislation...................     9
        C. Legislative History...................................     9
II. Explanation of Provisions........................................10
III.Votes of the Committee...........................................23

IV. Budget Effects of the Bill.......................................23
        A. Committee Estimate of Budgetary Effects...............    23
        B. Statement Regarding New Budget Authority and Tax 
          Expenditures...........................................    23
        C. Cost Estimate Prepared by the Congressional Budget 
          Office.................................................    23
 V. Other Matters Required To Be Discussed Under the Rules of the Hou26
        A. Committee Oversight Findings and Recommendations......    26
        B. Statement of General Performance Goals and Objectives.    26
        C. Constitutional Authority Statement....................    27
        D. Information Related to Unfunded Mandates..............    27
VI. Changes in Existing Laws Made by the Bill, as Reported...........27

  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 ``Child and Family Services Improvement 
Act of 2006''.

SEC. 2. FINDINGS.

  The Congress finds as follows:
          (1) For Federal fiscal year 2004, child protective services 
        (CPS) staff nationwide reported investigating or assessing an 
        estimated 3,000,000 allegations of child maltreatment, and 
        determined that 872,000 children had been abused or neglected 
        by their parents or other caregivers.
          (2) Combined, the Child Welfare Services (CWS) and Promoting 
        Safe and Stable Families (PSSF) programs provide States about 
        $700,000,000 per year for services intended to ensure the 
        safety, permanency, and well-being of children. These programs 
        are considered the largest source of targeted Federal funding 
        in the child protection system for prevention--that is, for 
        services to ensure that children are not abused or neglected 
        and, whenever possible, help children remain safely with their 
        families.
          (3) States have broad flexibility in directing CWS dollars to 
        protect children from abuse and neglect. Under the PSSF 
        program, States must invest significant portions of program 
        funds in family preservation services, family support services, 
        time-limited reunification services, and post-adoption support 
        services.
          (4) However, a 2003 report by the Government Accountability 
        Office (GAO) reported that little research is available on the 
        effectiveness of activities supported by CWS funds--evaluations 
        of services supported by PSSF funds have generally shown little 
        or no effect.
          (5) Further, the Department of Health and Human Services 
        recently completed initial Child and Family Service Reviews 
        (CFSRs) in each State. No State was in full compliance with all 
        measures of the CFSRs. The CFSRs also revealed that States need 
        to work to prevent repeat abuse and neglect of children, 
        improve services provided to families to reduce the risk of 
        future harm (including by better monitoring the participation 
        of families in services), and strengthen upfront services 
        provided to families to prevent unnecessary family break-up and 
        protect children who remain at home.
          (6) Federal policy should ensure that States are 
        appropriately targeting CWS and PSSF funds to assist at-risk 
        families and protect abused and neglected children to address 
        issues found in the CFSRs. Encouraging States to invest their 
        CWS and PSSF funds in services that promote and protect the 
        welfare of children, support strong, healthy families, and 
        reduce the reliance on out-of-home care, will help ensure all 
        children are raised in safe, loving families.
          (7) CFSRs also found a strong correlation between frequent 
        caseworker visits with children and positive outcomes for these 
        children, such as timely achievement of permanency and other 
        indicators of child well-being.
          (8) However, a December 2005 report by the Department of 
        Health and Human Services Office of Inspector General found 
        that only 20 States were able to produce reports to show 
        whether caseworkers actually visited children in foster care on 
        at least a monthly basis, despite the fact that nearly all 
        States had written standards suggesting monthly visits were 
        State policy. In fact, 7 of these 20 States indicated that 
        fewer than half of the children in foster care were visited on 
        a monthly basis.
          (9) The Deficit Reduction Act of 2005 provided $40,000,000 in 
        fiscal year 2006 for the PSSF program which this Act ensures 
        will be available and which the Congressional Budget Office 
        estimates will increase mandatory budget authority by 
        $40,000,000 each year from 2006 through 2015, for a total of 
        $400,000,000.
          (10) A 2003 GAO report found that the average tenure for a 
        child welfare caseworker is less than 2 years and this level of 
        turnover negatively affects safety and permanency for children.
          (11) Targeting additional PSSF funds to ensure children in 
        foster care are visited on at least a monthly basis will 
        promote better outcomes for vulnerable children, including by 
        preventing further abuse and neglect.

SEC. 3. REAUTHORIZATION OF THE SAFE AND STABLE FAMILIES PROGRAM.

  (a) Elimination of Findings.--Section 430 of the Social Security Act 
(42 U.S.C. 629) is amended by striking all through ``(b) Purpose.--The 
purpose'' and inserting the following:

``SEC. 430. PURPOSE.

  ``The purpose''.
  (b) Limitation on Administrative Cost Reimbursement.--Section 434 of 
such Act (42 U.S.C. 629d) is amended--
          (1) in subsection (a), by inserting ``, subject to subsection 
        (d),'' after ``shall''; and
          (2) by adding at the end the following:
  ``(d) Limitation on Reimbursement for Administrative Costs.--The 
Secretary shall not make a payment to a State under this section with 
respect to expenditures for administrative costs during a fiscal year, 
to the extent that the total amount of the expenditures exceeds 10 
percent of the total expenditures of the State during the fiscal year 
under the State plan approved under section 432.''.
  (c) Funding of Mandatory Grants at $345 Million Per Fiscal Year.--
Section 436(a) of such Act (42 U.S.C. 629f(a)) is amended by striking 
``for fiscal year 2006.'' and all that follows and inserting ``for each 
of fiscal years 2007 through 2011.''.
  (d) Funding of Discretionary Grants.--Section 437(a) of such Act (42 
U.S.C. 629g(a)) is amended by striking ``2002 through 2006'' and 
inserting ``2007 through 2011''.
  (e) Increase in Set-Asides for Indian Tribes.--
          (1) Mandatory grants.--Section 436(b)(3) of such Act (42 
        U.S.C. 629f(b)(3)) is amended by striking ``1'' and inserting 
        ``3''.
          (2) Discretionary grants.--Section 437(b)(3) of such Act (42 
        U.S.C. 629g(b)(3)) is amended by striking ``2'' and inserting 
        ``3''.
  (f) Collection of Data on Tribal Promoting Safe and Stable Families 
Plans.--Section 432(b)(2) of such Act (42 U.S.C. 629b(b)(2)) is 
amended--
          (1) by striking subparagraph (A); and
          (2) in subparagraph (B), by striking ``Notwithstanding 
        subparagraph (A) of this paragraph, the'' and inserting 
        ``The''.
  (g) Authority of Intertribal Consortia to Apply for Grants.--Section 
432(b)(2) of such Act (42 U.S.C. 629(b)(b)(2)), as amended by 
subsection (f) of this section, is amended--
          (1) by inserting before subparagraph (B) the following:
                  ``(A) Intertribal consortia.--This subpart shall not 
                be interpreted to preclude the development and 
                submission of a single tribal plan under this subpart 
                by the participating tribes of an intertribal 
                consortium.''; and
          (2) in subparagraph (B)--
                  (A) by inserting ``or tribal consortium'' after 
                ``Indian tribe''; and
                  (B) by inserting ``and tribal consortia'' after 
                ``Indian tribes''.
  (h) Technical Correction.--Section 431(a)(6) of such Act (42 U.S.C. 
629a(a)(6)) is amended by striking ``1986'' and inserting ``1996''.

SEC. 4. TARGETING OF INCREASED SAFE AND STABLE FAMILIES PROGRAM 
                    RESOURCES TO SUPPORT MONTHLY CASEWORKER VISITS.

  (a) Reservation and Use of Funds.--
          (1) In general.--Section 436(b) of the Social Security Act 
        (42 U.S.C. 629f(b)) is amended by adding at the end the 
        following:
          ``(4) Support for monthly caseworker visits.--
                  ``(A) Reservation.--In the case of each of fiscal 
                years 2006 through 2011, the Secretary shall reserve 
                $40,000,000 for allotment in accordance with section 
                433(e).
                  ``(B) Use of funds.--
                          ``(i) In general.--A State to which an amount 
                        is paid from amounts reserved under 
                        subparagraph (A) shall use the amount to 
                        support monthly caseworker visits with children 
                        who are in foster care under the responsibility 
                        of the State, with a primary emphasis on 
                        activities designed to improve caseworker 
                        retention, recruitment, training, and ability 
                        to access the benefits of technology.
                          ``(ii) Nonsupplantation.--A State to which an 
                        amount is paid from amounts reserved pursuant 
                        to subparagraph (A) shall not use the amount to 
                        supplant any Federal funds paid to the State 
                        under part E that could be used as described in 
                        clause (i).''.
          (2) Effect on amounts reserved for indian tribes.--Section 
        436(b)(3) of such Act (42 U.S.C. 629b(b)(3)) is amended by 
        striking ``The'' and inserting ``After applying paragraph (4) 
        (but before applying paragraphs (1) or (2)), the''.
  (b) Allotment of Funds.--Section 433 of such Act (42 U.S.C. 629c) is 
amended--
          (1) in subsection (d), by inserting ``subsection (a), (b), or 
        (c) of'' before ``this section'' the 1st and 2nd places it 
        appears; and
          (2) by adding at the end the following:
  ``(e) Special Rules Applicable to Funds Reserved to Support Monthly 
Caseworker Visits.--
          ``(1) Allotments.--
                  ``(A) Territories.--From the amount reserved pursuant 
                to section 436(b)(4)(A) for fiscal year 2006 or any 
                succeeding fiscal year, the Secretary shall allot to 
                each jurisdiction specified in subsection (b) of this 
                section that meets the requirements of paragraph (2) of 
                this subsection for the fiscal year an amount 
                determined in the same manner as the allotment to each 
                of such jurisdictions is determined under section 423 
                (without regard to the initial allotment of $70,000 to 
                each State).
                  ``(B) Other states.--From the amount reserved 
                pursuant to section 436(b)(4)(A) for fiscal year 2006 
                or any succeeding fiscal year that remains after 
                applying subparagraph (A) of this paragraph for the 
                fiscal year, the Secretary shall allot to each State 
                (other than an Indian tribe) not specified in 
                subsection (b) of this section that meets the 
                requirements of paragraph (2) of this subsection for 
                the fiscal year an amount equal to such remaining 
                amount multiplied by the food stamp percentage of the 
                State (as defined in subsection (c)(2) of this section) 
                for the fiscal year, except that in applying subsection 
                (c)(2)(A) of this section, `subsection (e)(1)(B)' shall 
                be substituted for `such paragraph (1)'.
          ``(2) Requirements.--The requirements of this paragraph are 
        the following:
                  ``(A) Amounts allotted for fiscal year 2007.--In the 
                case of amounts reserved pursuant to section 
                436(b)(4)(A) for fiscal year 2007, the State has 
                provided to the Secretary data which shows, for the 
                most recent fiscal year for which such information is 
                available--
                          ``(i) the percentage of children in foster 
                        care under the responsibility of the State who 
                        were visited by the caseworker handling the 
                        case of the child at least once each month 
                        while the child was in such care; and
                          ``(ii) the percentage of the visits that 
                        occurred in the residence of the child.
                  ``(B) Amounts allotted for succeeding fiscal years.--
                In the case of amounts reserved pursuant to section 
                436(b)(4)(A) for fiscal year 2008 or any succeeding 
                fiscal year:
                          ``(i) Data showing frequency and location of 
                        caseworker visits.--The State has provided to 
                        the Secretary data which shows, for the 
                        preceding fiscal year, that--
                                  ``(I) for at least 90 percent of the 
                                children in foster care under the 
                                responsibility of the State--
                                          ``(aa) the caseworker 
                                        handling the case of the child 
                                        visited the child at least once 
                                        each month while the child was 
                                        in such care; and
                                          ``(bb) the majority of the 
                                        visits occurred in the 
                                        residence of the child; or
                                  ``(II) the State made the requisite 
                                annual progress, as determined by the 
                                Secretary, to comply with subclause (I) 
                                by October 1, 2011.
                          ``(ii) State ability to verify frequency of 
                        caseworker visits.--The Secretary has verified 
                        that the State has in effect such policies and 
                        standards as may be necessary to enable the 
                        State to determine whether, for at least 90 
                        percent of the children in foster care under 
                        the responsibility of the State, a caseworker 
                        visited the child at least once each month 
                        during the fiscal year.
                          ``(iii) Verification of nonsupplantation 
                        compliance.--The State has provided to the 
                        Secretary such documentation as may be 
                        necessary to verify that the State has complied 
                        with section 436(b)(4)(B)(ii) during the fiscal 
                        year.''.
  (c) Payments to States.--Section 434(a) of such Act (42 U.S.C. 
629d(a)), as amended by section 3(b)(1) of this Act, is amended by 
striking ``the lesser of--'' and all that follows and inserting the 
following: ``the sum of--
          ``(1) the lesser of--
                  ``(A) 75 percent of the total expenditures by the 
                State for activities under the plan during the fiscal 
                year or the immediately succeeding fiscal year; or
                  ``(B) the allotment of the State under subsection 
                (a), (b), or (c) of section 433, whichever is 
                applicable, for the fiscal year; and
          ``(2) the lesser of--
                  ``(A) 75 percent of the total expenditures by the 
                State in accordance with section 436(b)(4)(B) during 
                the fiscal year or the immediately succeeding fiscal 
                year; or
                  ``(B) the allotment of the State under section 433(e) 
                for the fiscal year.''.

SEC. 5. IMPROVEMENTS TO THE CHILD WELFARE SERVICES PROGRAM.

  (a) Funding.--Subpart 1 of part B of title IV of the Social Security 
Act (42 U.S.C. 620-628b) is amended by striking sections 420 and 425 
and inserting after section 424 the following:
            ``limitations on authorization of appropriations
  ``Sec. 425. To carry out this subpart, there are authorized to be 
appropriated to the Secretary not more than $325,000,000 for each of 
fiscal years 2007 through 2011.''.
  (b) Purpose of Program.--Such subpart is further amended--
          (1) by striking section 424;
          (2) by redesignating sections 421 and 423 as sections 423 and 
        424, respectively, and by transferring section 423 (as so 
        redesignated) so that it appears after section 422; and
          (3) by inserting after the subpart heading the following:
                               ``purpose
  ``Sec. 421. The purpose of this subpart is to promote State 
flexibility in the development and expansion of a coordinated child and 
family services program that utilizes community-based agencies and 
ensures all children are raised in safe, loving families, by--
          ``(1) protecting and promoting the welfare of all children;
          ``(2) preventing the neglect, abuse, or exploitation of 
        children;
          ``(3) supporting at-risk families through services which 
        allow children, where appropriate, to remain safely with their 
        families or return to their families in a timely manner;
          ``(4) promoting the safety, permanence, and well-being of 
        children in foster care; and
          ``(5) providing training, professional development and 
        support to ensure a well-qualified child welfare workforce.''.
  (c) Modification of State Plan Requirements.--Section 422 of such Act 
(42 U.S.C. 622) is amended--
          (1) in subsection (b)--
                  (A) by striking paragraphs (3) through (5) and 
                inserting the following:
          ``(3) include a description of the services and activities 
        which the State will fund under the State program carried out 
        pursuant to this subpart, and how the services and activities 
        will achieve the purpose of this subpart;'';
                  (B) by striking paragraph (6) and inserting after 
                paragraph (3) (as added by subparagraph (A) of this 
                paragraph) the following:
          ``(4) contain a description of--
                  ``(A) the steps the State will take to provide child 
                welfare services statewide and to expand and strengthen 
                the range of existing services and develop and 
                implement services to improve child outcomes; and
                  ``(B) the child welfare services staff development 
                and training plans of the State;'';
                  (C) by redesignating paragraphs (7) through (9) as 
                paragraphs (5) through (7), respectively;
                  (D) in paragraph (10)--
                          (i) by striking subparagraph (A);
                          (ii) in subparagraph (B)(iii)(II), by 
                        inserting ``, which may include a residential 
                        educational program'' after ``in some other 
                        planned, permanent living arrangement'';
                          (iii) by redesignating subparagraph (B) as 
                        subparagraph (A); and
                          (iv) by striking subparagraph (C) and 
                        inserting after subparagraph (A) the following:
                  ``(B) has in effect policies and administrative and 
                judicial procedures for children abandoned at or 
                shortly after birth which enable permanent decisions to 
                be made expeditiously with respect to the placement of 
                the children;'';
                  (E) in paragraph (14), by striking ``and'' at the 
                end;
                  (F) in paragraph (15), by striking the period and 
                inserting a semicolon;
                  (G) by redesignating paragraphs (10) through (15) as 
                paragraphs (8) through (13), respectively; and
                  (H) by adding at the end the following:
          ``(14) include assurances that not more than 10 percent of 
        the expenditures of the State with respect to activities funded 
        from amounts provided under this subpart will be for 
        administrative costs; and
          ``(15) outlines how the State will ensure that physicians or 
        other appropriate medical professionals are actively consulted 
        and involved in--
                  ``(A) assessing the health and well-being of children 
                in foster care under the responsibility of the State; 
                and
                  ``(B) determining appropriate medical treatment for 
                the children.''; and
          (2) by adding at the end the following:
  ``(c) Definitions.--In this subpart:
          ``(1) Administrative costs.--The term `administrative costs' 
        means costs for the following, but only to the extent incurred 
        in administering the State plan developed pursuant to this 
        subpart: procurement, payroll management, personnel functions 
        (other than the portion of the salaries of supervisors 
        attributable to time spent directly supervising the provision 
        of services by caseworkers), management, maintenance and 
        operation of space and property, data processing and computer 
        services, accounting, budgeting, auditing, and travel expenses 
        (except those related to the provision of services by 
        caseworkers or the oversight of programs funded under this 
        subpart).
          ``(2) Other terms.--For definitions of other terms used in 
        this part, see section 475.''.
  (d) Provisions Relating to State Allotments.--Section 423 of such 
Act, as so redesignated by subsection (b)(2) of this section, is 
amended--
          (1) in subsection (a)--
                  (A) by inserting ``In General.--'' after ``(a)'';
                  (B) by striking ``420'' and inserting ``425''; and
                  (C) by striking ``He'' and inserting ``The 
                Secretary'';
          (2) in subsection (b)--
                  (A) by inserting ``Determination of State Allotment 
                Percentages.--'' after ``(b)''; and
                  (B) by striking ``per centum'' each place it appears 
                and inserting ``percent'';
          (3) in subsection (c), by inserting ``Promulgation of State 
        Allotment Percentages.--'' after ``(c)'';
          (4) in subsection (d)--
                  (A) by inserting ``United States Defined.--'' after 
                ``(d)''; and
                  (B) by striking ``fifty'' and inserting ``50''; and
          (5) by adding at the end the following:
  ``(e) Reallotment of Funds.--
          ``(1) In general.--The amount of any allotment to a State for 
        a fiscal year under the preceding provisions of this section 
        which the State certifies to the Secretary will not be required 
        for carrying out the State plan developed as provided in 
        section 422 shall be available for reallotment from time to 
        time, on such dates as the Secretary may fix, to other States 
        which the Secretary determines--
                  ``(A) need sums in excess of the amounts allotted to 
                such other States under the preceding provisions of 
                this section, in carrying out their State plans so 
                developed; and
                  ``(B) will be able to so use such excess sums during 
                the fiscal year.
          ``(2) Considerations.--The Secretary shall make the 
        reallotments on the basis of the State plans so developed, 
        after taking into consideration--
                  ``(A) the population under 21 years of age;
                  ``(B) the per capita income of each of such other 
                States as compared with the population under 21 years 
                of age; and
                  ``(C) the per capita income of all such other States 
                with respect to which such a determination by the 
                Secretary has been made.
          ``(3) Amounts reallotted to a state amounts deemed part of 
        state allotment.--Any amount so reallotted to a State is deemed 
        part of the allotment of the State under this section.''.
  (e) Payments to States.--
          (1) Exclusion of expenditures for child day care, foster care 
        maintenance payments, and adoption assistance payments from 
        allowable expenditures.--Section 424 of such Act, as so 
        redesignated by subsection (b)(2) of this section, is amended--
                  (A) in subsection (c)--
                          (i) in paragraph (1)--
                                  (I) by striking ``No'' and inserting 
                                ``Except as provided in paragraph (2), 
                                no'';
                                  (II) by striking ``, for any fiscal 
                                year beginning after September 30, 
                                1979,'';
                                  (III) in subparagraph (A), by 
                                striking ``necessary'' and all that 
                                follows through ``living''; and
                                  (IV) in subparagraph (C), by striking 
                                ``, to the extent'' and all that 
                                follows through ``1979''; and
                          (ii) by striking paragraph (2) and inserting 
                        the following:
  ``(2) In the case of a State which demonstrates to the Secretary that 
the State made an expenditure described in paragraph (1) in fiscal year 
2005, the Secretary shall not make a payment to the State under this 
part for any fiscal year beginning after September 30, 2006, with 
respect to the State expenditures so described, to the extent that the 
Federal payment with respect to the expenditures so described for the 
fiscal year exceeds the lesser of--
          ``(A) the total amount of the Federal payment under this part 
        for fiscal year 1979; or
          ``(B) the total amount of the Federal payment with respect to 
        the expenditures so described for fiscal year 2005.''; and
                  (B) in subsection (d)--
                          (i) by striking ``(excluding expenditures for 
                        activities specified in subsection (c)(1))''; 
                        and
                          (ii) by striking ``such activities'' and 
                        inserting ``activities specified in subsection 
                        (c)(1)''.
          (2) Limitation on administrative cost reimbursement.--Section 
        424 of such Act (42 U.S.C. 623), as so redesignated by 
        subsection (b)(2) of this section, is amended by adding at the 
        end the following:
  ``(e) Limitation on Reimbursement for Administrative Costs.--The 
Secretary shall not make a payment to a State under this section with 
respect to expenditures during a fiscal year for administrative costs, 
to the extent that the total amount of the expenditures exceeds 10 
percent of the total expenditures of the State during the fiscal year 
for activities funded from amounts provided under this subpart.''.
          (3) Technical amendment.--Section 424(a) of such Act, as so 
        redesignated by subsection (b)(2) of this section, is amended 
        by striking ``per centum'' and inserting ``percent''.
  (f) Elimination of Obsolete Provision.--Section 426 of such Act (42 
U.S.C. 626) is amended by striking subsection (b) and redesignating 
subsection (c) as subsection (b).
  (g) Conforming Amendments.--
          (1) Section 428(b) of such Act (42 U.S.C. 628(b)) is amended 
        by striking ``421'' and inserting ``423''.
          (2) Section 429 of such Act (42 U.S.C. 628a) is amended--
                  (A)(i) by striking the following:
                      ``child welfare traineeships
  ``Sec. 429. The Secretary''; and
                  (ii) inserting the following:
  ``(c) Child Welfare Traineeships.--The Secretary''; and
                  (B) by transferring the provision to the end of 
                section 426 (as amended by subsection (f) of this 
                section).
          (3) Section 429A of such Act (42 U.S.C. 628b) is redesignated 
        as section 429.
          (4) Section 433(b) of such Act (42 U.S.C. 629c(b)) is amended 
        by striking ``421'' and inserting ``423''.
          (5) Section 437(c)(2) of such Act (42 U.S.C. 629g(c)(2)) is 
        amended by striking ``421'' and inserting ``423''.

SEC. 6. REAUTHORIZATION OF THE COURT IMPROVEMENT PROGRAM.

  Section 438 of the Social Security Act (42 U.S.C. 629h) is amended in 
each of subsections (c)(1)(A) and (d) by striking ``2006'' and 
inserting ``2011''.

SEC. 7. REAUTHORIZATION OF PROGRAM FOR MENTORING CHILDREN OF PRISONERS.

  Section 439 of the Social Security Act (42 U.S.C. 629i) is amended--
          (1) in subsection (c), by striking ``2002 through 2006'' and 
        inserting ``2007 through 2011''; and
          (2) in subsection (h), by striking paragraph (1) and 
        inserting the following:
          ``(1) Limitations on authorization of appropriations; 
        reservation of certain amounts.--To carry out this section, 
        there are authorized to be appropriated to the Secretary such 
        sums as may be necessary for fiscal years 2007 through 2011.''.

SEC. 8. AVAILABILITY OF ADDITIONAL PROMOTING SAFE AND STABLE FAMILIES 
                    RESOURCES FOR FISCAL YEAR 2006.

  (a) Appropriation.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated to the 
Secretary of Health and Human Services $40,000,000 for fiscal year 2006 
to carry out subpart 2 of part B of title IV of the Social Security 
Act, in addition to any amount otherwise made available for fiscal year 
2006 to carry out such subpart.
  (b) Availability of Funds.-- Notwithstanding section 434(b)(2) of 
such Act, the amounts paid to States from the amount appropriated under 
subsection (a) of this section shall remain available for expenditure 
by the States through fiscal year 2008.

SEC. 9. REPORTS.

  Section 435 of the Social Security Act (42 U.S.C. 629e) is amended by 
adding at the end the following:
  ``(e) Reports.--
          ``(1) Content.--The Secretary shall submit to the Committee 
        on Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate biennial reports on--
                  ``(A) the level of expenditures, and the programs and 
                activities funded, under subpart 1 and this subpart by 
                each State, territory, and Indian tribe to which funds 
                are paid under this part;
                  ``(B) the number of children and families served by 
                each such State, territory, and Indian tribe under the 
                programs; and
                  ``(C) how spending under the programs has helped 
                achieve the goals identified by each such State, 
                territory, and Indian tribe as part of the annual 
                planning process undertaken in developing plans 
                pursuant to this part.
          ``(2) Timing.--The Secretary shall submit the biennial 
        reports required by paragraph (1) not later than July 1, 2008, 
        and not later than July 1 of every other calendar year 
        thereafter.''.

SEC. 10. EFFECTIVE DATES.

  (a) In General.--Except as otherwise provided in this section, the 
amendments made by this Act shall take effect on October 1, 2006, and 
shall apply to payments under part B of title IV of the Social Security 
Act for calendar quarters beginning on or after such date, without 
regard to whether regulations to implement the amendments are 
promulgated by such date.
  (b) Delay Permitted If State Legislation Required.--If the Secretary 
of Health and Human Services determines that State legislation (other 
than legislation appropriating funds) is required in order for a State 
plan developed pursuant to subpart 1 of part B, or a State plan 
approved under subpart 2 of part B, of title IV of the Social Security 
Act to meet the additional requirements imposed by the amendments made 
by this Act, the plan shall not be regarded as failing to meet any of 
the additional requirements before the 1st day of the 1st calendar 
quarter beginning after the first regular session of the State 
legislature that begins after the date of the enactment of this Act. If 
the State has a 2-year legislative session, each year of the session is 
deemed to be a separate regular session of the State legislature.
  (c) Availability of Additional Promoting Safe and Stable Families 
Resources for Fiscal Year 2006.--Section 8 shall take effect on the 
date of the enactment of this Act.

                            I. INTRODUCTION

                         A. Purpose and Summary

    The Committee bill, H.R. 5640, as amended, includes 
provisions to (1) reauthorize the Promoting Safe and Stable 
Families (PSSF) program, (2) target resources towards ensuring 
children in foster care are visited on a monthly basis by 
caseworkers, (3) improve the Child Welfare Services (CWS) 
program, (4) reauthorize the Court Improvement Program, (5) 
reauthorize the Mentoring Children of Prisoners Program, and 
(6) appropriate for fiscal year (FY) 2006 the additional $40 
million in mandatory funding provided under the Deficit 
Reduction Act of 2005 (P.L. 109-171) for the PSSF program.
    Section 1 provides the short title of the bill. Section 2 
includes a set of findings to the underlying bill which 
describe what is known about how States spend child protective 
services funds, and refer to research suggesting the changes 
included in this legislation will better protect children.
    Section 3 extends the authorization of mandatory funding 
for the PSSF program at the current $345 million level for each 
of fiscal years (FYs) 2007 through 2011 and also extends the 
authorization of discretionary appropriations at the current 
$200 million level for each of FYs 2007 through 2011. It also 
seeks to focus program spending on services to families, 
increases the share of program funds set aside for Indian 
tribes, and allows tribal consortia to seek PSSF program funds.
    Section 4 of the bill targets the recent $40 million 
increase in PSSF funds to support monthly caseworker visits 
with children in foster care, with a primary emphasis on 
activities designed to improve caseworker retention, 
recruitment, training, and ability to access the benefits of 
technology.
    Section 5 makes several technical changes and other 
improvements to the CWS program, generally conforming this 
program more closely to the PSSF program, which shares many of 
the same goals.
    Sections 6 and 7 reauthorize the current Court Improvement 
and Mentoring Children of Prisoners programs at their current 
funding levels, for each of FYs 2007 through 2011.
    Section 8 appropriates for FY 2006 only the additional $40 
million in PSSF funds provided under the Deficit Reduction Act 
of 2005 (P.L. 109-171).
    Section 9 provides for certain biennial reports to the 
House Committee on Ways and Means and the Senate Committee on 
Finance on programs and activities funded by the CWS and PSSF 
programs.
    Section 10 provides for effective dates.

                 B. Background and Need for Legislation

    The bill approved by the Committee reauthorizes and 
improves important child protection programs. It reauthorizes 
the PSSF program for five years and targets new resources to 
ensure children in foster care are visited on a monthly basis 
by their caseworkers, responding to research showing a strong 
correlation between frequent caseworker visits and positive 
outcomes for children.
    The bill improves and updates the CWS program, better 
aligning the services intended to ensure the safety, 
permanency, and well-being of children provided through this 
program and the PSSF program. It also continues the Court 
Improvement Program, the Mentoring Children of Prisoners 
program and ensures the availability of the additional $40 
million provided for the PSSF program in FY 2006 by the Deficit 
Reduction Act of 2005 (P.L. 109-171).

                         C. Legislative History

    H.R. 5640 was introduced on June 20, 2006 and was referred 
to the Committee on Ways and Means. The Committee on Ways and 
Means marked up the bill on June 29, 2006 and ordered the bill, 
as amended, favorably reported.
    The Committee on Ways and Means Subcommittee on Human 
Resources held a hearing on May 23, 2006 on proposals to 
improve child protective services such as those supported by 
the PSSF and CWS programs. Witnesses at this hearing provided 
comments on draft legislation reflecting provisions 
subsequently introduced by Subcommittee on Human Resources 
Chairman Wally Herger (R-CA) and Ranking Member Jim McDermott 
(D-WA) as H.R. 5640. In recent years, the Subcommittee on Human 
Resources also has conducted a series of oversight hearings on 
various aspects of the child protection system, which generally 
indicated a need for improved oversight and accountability 
throughout these programs.

                     II. EXPLANATION OF PROVISIONS

                         SECTION 1. SHORT TITLE

Present Law

    No provision.

Explanation of Provision

    The Act is named the ``Child and Family Services 
Improvement Act of 2006.''

Reason for Change

    Not applicable.

                          SECTION 2. FINDINGS

Present Law

    No provision.

Explanation of Provision

    The legislation includes a series of findings that (1) 
describe what is known about how States spend child protective 
services funds, (2) outline what measures research suggests are 
effective to combat child abuse and ensure child safety, and 
(3) highlight the goals and objectives for the approximately 
$700 million provided each year for the Child Welfare Services 
(CWS) and Promoting Safe and Stable Families (PSSF) programs.

Reason for Change

    The findings highlight noteworthy changes made in this 
legislation that will improve and strengthen child protection 
programs and encourage States to invest Federal resources in 
up-front prevention activities to better ensure children are 
raised in safe, loving families.

   SECTION 3. REAUTHORIZATION OF THE SAFE AND STABLE FAMILIES PROGRAM

Present Law

    The Promoting Safe and Stable Families Amendments of 2001 
(P.L. 107-133) made a series of findings describing (1) the 
effectiveness of family support programs directed at specific 
vulnerable populations, (2) the purpose of family preservation 
programs, (3) the importance of making available in a timely 
manner services that address family problems (in particular, 
services and treatment addressing substance abuse), and (4) how 
the rapid increase in the number of adoptions since enactment 
of the Adoption and Safe Families Act of 1997 has created a 
need for post-adoption services and for knowledgeable post-
adoption service providers.
    As a condition of approval of their State plan for the PSSF 
program, States must assure that they will spend no more than 
10 percent of the Federal funds they receive for the PSSF 
program on administrative costs.
    For fiscal year (FY) 2006, $345 million in mandatory 
funding is authorized for the PSSF program. For each of FYs 
2002 through 2006, discretionary appropriations of up to $200 
million are authorized for the PSSF program.
    For each of fiscal years (FYs) 2002 through 2006, present 
law provides that one percent of the mandatory funds authorized 
and two percent of any discretionary funds appropriated for the 
PSSF program must be set-aside for tribal child and family 
services programs. Therefore, the minimum funding available per 
year for tribal programs is $3.45 million and the maximum is 
$7.45 million.
    To receive PSSF funding, tribes must meet the same plan 
requirements that States must meet, which are generally related 
to planning and reporting on the planned use of the funds, 
providing services, and administering the funds received. 
However, the Secretary of the U.S. Department of Health and 
Human Services (the Secretary) may exempt an Indian tribe from 
any of the plan requirements that it determines is 
inappropriate for that tribe, after taking into account the 
resources, needs, and other circumstances of the tribe.
    Out of the funds reserved for tribal child and family 
services programs from the PSSF appropriations, allotments are 
made to each eligible tribe based on the tribe's relative share 
of individuals under the age of 21 (among all eligible tribes). 
However, no tribe may have an approved program plan (i.e. be 
eligible for PSSF funding) if its allotment under this formula 
would be less than $10,000.
    For the purposes of the PSSF program, present law defines 
``Indian tribe'' as any Indian tribe and any Alaska native 
organization as they were defined in a certain section of the 
Job Opportunities and Basic Skills (JOBS) program (Title IV-F) 
of the Social Security Act as that section was in effect on 
August 22, 1986. The JOBS program was repealed as of the 
enactment (on August 22, 1996) of the Personal Responsibility 
and Work Opportunity Reconciliation Act (P.L. 104-193) of 1996.

Explanation of Provision

    The legislation removes the findings subsection from 
present law.
    It prohibits the Secretary from making any payment of PSSF 
funds to a State for administrative costs that exceed 10 
percent of total program expenditures (Federal and non-Federal) 
of a State.
    The legislation extends the authorization of mandatory 
funding for the PSSF program at the current $345 million level 
for each of FYs 2007 through 2011. It also extends the 
authorization of discretionary appropriations for the PSSF 
program at the current $200 million level for each of FYs 2007 
through 2011.
    The legislation increases the set-aside for tribal programs 
to 3 percent of any discretionary funds appropriated. It also 
increases the set-aside for tribal programs to 3 percent of the 
mandatory funds authorized and which remain after the separate 
reservation of funds for monthly caseworker visits is made (see 
additional provisions in Section 4 of the legislation described 
below). Therefore, the minimum funding available per year for 
tribal programs would be $9.15 million and the maximum funding 
would be $15.15 million. The legislation eliminates the ability 
of the Secretary to exempt tribes from any of the PSSF plan 
requirements. It permits an intertribal consortium (a group of 
tribes) to submit a single PSSF program plan for approval and 
clarifies that tribes can form consortia in order to meet the 
$10,000 minimum funding threshold required to be eligible to 
receive tribal PSSF funds.
    The legislation makes a technical correction by striking 
the incorrect reference to ``1986'' and replacing it with 
``1996.''

Reason for Change

    The PSSF program supports four categories of services 
provided to children and families: family preservation 
services, community-based family support services, time-limited 
reunification services, and adoption promotion and support 
services. The legislation recognizes the importance of 
encouraging States to invest in these activities. Thus the 
legislation provides for a $200 million increase in mandatory 
PSSF funds over the next five years, as made possible by the 
Deficit Reduction Act of 2005 (P.L. 109-171). In total $345 
million in mandatory funding (the recent $305 million allotment 
of annual mandatory funds, plus a $40 million annual increase 
provided under the Deficit Reduction Act of 2005) will be 
provided in each of FYs 2007 through 2011. The legislation also 
maintains the current level of discretionary appropriations by 
also authorizing $200 million for each of FYs 2007 through 
2011.
    To ensure that the vast majority of these funds are 
invested in up-front prevention activities intended to protect 
children and support families, thereby preventing the 
unnecessary placement or lingering of children in foster care, 
this legislation prohibits the Secretary from making any 
payment of PSSF funds to a State for administrative costs that 
exceed 10 percent of the total (Federal and non-Federal) PSSF 
expenditures of the State.
    The legislation also recognizes the importance of assisting 
tribes in their efforts to assist abused and neglected 
children. The legislation significantly increases the amount of 
funds provided to tribes and allows tribal consortia to apply 
for PSSF funds. To collect additional data and ensure proper 
oversight of these funds, tribes and tribal consortia 
interested in applying for this substantial increase in PSSF 
funds will be required to adhere to the same plan requirements 
as States. The Committee looks forward to examining this 
additional data to learn how these funds have helped the tribes 
better ensure the safety, permanency, and well-being of tribal 
children.

  SECTION 4. TARGETING OF INCREASED SAFE AND STABLE FAMILIES PROGRAM 
             RESOURCES TO SUPPORT MONTHLY CASEWORKER VISITS

Present Law

    Out of the total annual mandatory funds authorized for the 
PSSF program, one percent is reserved for tribal funding, $10 
million is reserved for the Court Improvement Program, and $6 
million is reserved for research, evaluation, training and 
technical assistance related to the PSSF program. The remaining 
funds are then allotted to the States and territories.
    A State, tribe, or territory is entitled to receive its 
full allotment of mandatory PSSF funds or an amount equal to 75 
percent of its total expenditures for activities under the PSSF 
plan (whichever is less). Each State's allotment of mandatory 
(and any discretionary) funding is determined by each State's 
average relative share of children receiving food stamps (based 
on the most recent 3 years of data). Allotments for the five 
territories (American Samoa, Guam, Northern Mariana Islands, 
Puerto Rico, and the Virgin Islands) are based on the formula 
that is used to distribute CWS funds. Each territory receives a 
minimum allotment of $70,000 and the remaining funds are 
distributed based on the assumption that each territory has low 
per capita income and on the relative share of the population 
under age 21 in the territory.
    A State, tribe, or territory may certify that it will not 
need some or all of the PSSF funds allotted to it for a given 
fiscal year and the Secretary must re-allot those funds (using 
the regular program allotment methodology) to the other States, 
tribes, or territories.

Explanation of Provision

    The legislation provides that out of the $345 million in 
mandatory funds authorized for the PSSF program in each of FYs 
2006 through 2011, $40 million must be reserved annually to 
support monthly caseworker visits of children in foster care 
under the responsibility of the State, with a primary emphasis 
on activities designed to improve caseworker retention, 
recruitment, training, and ability to access the benefits of 
technology. (Note: Funds for FY 2006 were authorized under the 
Deficit Reduction Act of 2005 (P.L. 109-171), but are 
appropriated under Section 8 of this legislation; see below.)
    States receiving an allotment of the $40 million reserved 
from PSSF funds to support monthly caseworker visits of 
children in foster care cannot use these funds to supplant any 
Federal funds already paid to the State under the Title IV-E 
program that could be used for the purposes outlined above.
    As provided in Section 3 of the legislation, 3 percent of 
mandatory PSSF funds would be set aside for tribal programs. 
This legislation provides that the determination of the tribal 
set-aside amount would be made after the set-aside of $40 
million to support monthly caseworker visits, but before any 
other reservations or allotments of PSSF funds are made.
    The re-allotment provisions do not apply to the allotment 
of funds made out of the $40 million in funding that is 
reserved for support of monthly caseworker visits.
    For FY 2006 and any succeeding fiscal year, funds reserved 
to support monthly caseworker visits are to be distributed to 
each territory or State that meets the specific requirements to 
receive funding provided for that fiscal year. PSSF funds to 
support monthly caseworker visits would be allotted first to 
eligible territories as they are currently allotted for the CWS 
program, except that there would be no minimum allotment of 
$70,000. The remaining reserved funds to support monthly 
caseworker visits would be allotted to each eligible State 
(including the District of Columbia) that meets the specific 
requirements for the funding. Each State's allotment from the 
$40 million set-aside would be based on the State's relative 
share of the average monthly number of children receiving food 
stamps (based on the most recent 3 years of data), among all 
States who meet the requirements to receive these funds.
    There would be no specific requirements for a State or 
territory to receive its allotment out of this $40 million 
provided in FY 2006, although States and territories would need 
to adhere to the general rules related to PSSF program funds. 
These rules require that these funds may not be used to 
supplant Federal Title IV-E funds available for the same 
purposes. Also, to receive its full allotment of the funds, a 
State or territory must provide at least 25 percent of the 
total expenditures for activities to support monthly caseworker 
visits.
    To receive its allotment from the $40 million provided for 
FY 2007, the legislation requires a State or territory to 
provide data to the Secretary that show, for the most recent 
fiscal year that the information is available, the percentage 
of children in its foster care caseload that received at least 
one visit per month from their assigned caseworker and the 
percentage of those visits that occurred in the child's 
residence.
    To receive its allotment from the $40 million provided for 
FY 2008 and every fiscal year that follows, each State and 
territory would be held accountable for their efforts to 
monitor foster children. In order to continue to receive their 
share of these funds in FY 2008 and subsequent years, the 
legislation requires a State or territory to provide data to 
the Secretary showing that in the preceding fiscal year, (1) at 
least 90 percent of its children in foster care were visited by 
their assigned caseworkers at least once each month, and the 
majority of those visits occurred at the children's residences, 
or (2) that the State or territory is making the ``requisite 
annual progress,'' as determined by the Secretary, to assure 
these visits occur for at least 90 percent of their foster 
children no later than October 1, 2011. In addition, a State or 
territory must have in effect policies and standards, as 
determined by the Secretary, to know whether for at least 90 
percent of their foster children the caseworker visited the 
child at least once each month during the fiscal year. Finally, 
the State or territory also must provide to the Secretary 
whatever documentation is necessary to demonstrate that it has 
not used these PSSF funds to supplant any Federal Title IV-E 
funding available for the same purposes.
    The legislation entitles a State, tribe, or territory to 
receive the lesser of its full allotment of the mandatory PSSF 
funds which are not provided to support monthly caseworker 
visits, or an amount equal to 75 percent of its total 
expenditures for activities under the PSSF plan. Separately, 
the legislation also entitles a State or territory to receive 
the lesser of its full allotment of mandatory PSSF funds to 
support monthly caseworker visits, or an amount equal to 75 
percent of its total expenditures for activities designed to 
support these visits.

Reason for Change

    This legislation targets the additional $40 million in 
mandatory PSSF funds provided through the Deficit Reduction Act 
of 2005 (P.L. 109-171) to support monthly caseworker visits 
with children in foster care, with a primary emphasis on 
activities designed to improve caseworker retention, 
recruitment, training, and ability to access the benefits of 
technology. In order to be eligible to receive these funds in 
FY 2007, States and territories would need to provide data to 
the Secretary on the percentage of foster children visited by 
their assigned caseworker at least once each month and the 
percentage of these visits that occurred in the child's 
residence. Beginning with FY 2008, States and territories would 
remain eligible for a share of this $40 million set-aside from 
mandatory PSSF funds only if they can document that, for at 
least 90 percent of children in foster care under the 
responsibility of the State, either (1) the foster children are 
visited on a monthly basis by their assigned caseworker and the 
majority of these visits occurred in the child's residence, or 
(2) the State or territory is making progress necessary to 
achieve this 90 percent standard by October 1, 2011, as 
determined by the Secretary.
    The targeting of these funds responds to research 
highlighting how monthly visits of foster children leads to 
better outcomes. The U.S. Department of Health and Human 
Services (HHS) recently completed initial Child and Family 
Service Reviews (CFSRs) in each State. No State was in full 
compliance with all measures identified in their CFSRs. The 
CFSRs revealed that States need to work to prevent repeat abuse 
and neglect of children, improve services provided to families 
to reduce the risk of future harm including by better 
monitoring the participation of families in services, and to 
strengthen up-front services provided to families to prevent 
unnecessary family break-up and protect children who remain at 
home. The CFSRs also found a strong correlation between 
frequent caseworker visits with children and positive outcomes 
for children, such as timely achievement of permanency and 
other indicators of child well-being.
    Even though such research links positive results with 
frequent caseworker visits, and despite the fact nearly all 
States had written standards suggesting monthly visits were 
State policy, a December 2005 report completed by the HHS 
Office of the Inspector General found that only 20 States were 
able to produce reports showing whether caseworkers actually 
visited children in foster care on at least a monthly basis. 
Further, seven of these 20 States indicated that fewer than 
half of the children in foster care were visited on a monthly 
basis. A 2003 report by the Government Accountability Office 
(GAO, formerly the General Accounting Office) also found that 
the average tenure for a child welfare caseworker is less than 
two years and that this level of turnover negatively affects 
safety and permanency for children. Targeting the additional 
$40 million in PSSF funds to ensure children in foster care are 
visited on at least a monthly basis will promote better 
outcomes for vulnerable children, including by preventing 
further abuse and neglect.
    Under the legislation, States and territories retain the 
flexibility to determine what activities will best assist them 
as they work to achieve monthly caseworker visits for at least 
90 percent of children in foster care under the responsibility 
of the State. The legislation specifies that these additional 
funds are to support monthly caseworker visits, with a primary 
emphasis on activities designed to improve caseworker 
retention, recruitment, training, and ability to access the 
benefits of technology. However, amounts spent by States for 
these activities may not supplant what States already spend 
from their Title IV-E programs for these activities. The 
resources provided from this set-aside are intended to increase 
State investment in these important areas.
    Some examples of the types of activities these funds may 
support include bonuses to caseworkers to support retention, 
increased training to assist caseworkers in their efforts to 
better protect children in care, better technology (i.e. laptop 
computers, cell phones, etc.) to ease administration and 
improve oversight of children in care, and loan forgiveness 
programs for child welfare caseworkers. However, States and 
territories should remain cognizant that continued receipt of 
these funds beyond FY 2007 will be contingent on their ability 
to document foster children are being visited on at least a 
monthly basis and that the majority of these visits occur in 
the child's residence, and that these funds cannot supplant 
what the State is already investing in these activities and for 
which the State is being reimbursed under the Title IV-E 
program. The Committee encourages States to invest in those 
activities with proven effectiveness in supporting monthly 
caseworker visits of foster children.

     SECTION 5. IMPROVEMENTS TO THE CHILD WELFARE SERVICES PROGRAM

Present Law

    Section 420 authorizes discretionary appropriations of up 
to $325 million per year for the CWS program on an indefinite 
basis. It also provides that funding for this program must be 
made in advance appropriations--that is, provided in the 
appropriation cycle immediately before the year in which States 
are allotted the funds--and includes language permitting two 
years of appropriations for this program in one appropriations 
bill to permit a transition to an advance appropriation.
    Section 420 further specifies that the purpose of the CWS 
program is to enable the United States, through the Secretary, 
to cooperate with State public welfare agencies to establish, 
extend and strengthen child welfare services.
    Section 425 defines child welfare services for all of Title 
IV-B of the Social Security Act as public social services that 
aim to achieve the following purposes: (1) protecting and 
promoting the welfare of all children, including handicapped, 
homeless, dependent, or neglected children; (2) preventing or 
remedying, or assisting in the solution of problems which may 
result in the neglect, abuse, exploitation, or delinquency of 
children; (3) preventing the unnecessary separation of children 
from their families by identifying family problems, assisting 
families in resolving their problems, and preventing breakup of 
the family where the prevention of child removal is desirable 
and possible; (4) restoring to their families children who have 
been removed, by the provision of services to the child and the 
families; (5) placing children in suitable adoptive homes, in 
cases where restoration to the biological family is not 
possible or appropriate; and (6) assuring adequate care of 
children away from their homes, in cases where the child cannot 
be returned home or cannot be placed for adoption.
    Section 425 further specifies that money spent by States to 
comply with certain child protections and certain reporting 
requirements, or to provide reimbursement to families for non-
recurring expenses related to the adoption of children (who 
meet the Federal eligibility criteria of Title IV-E) are to be 
understood as having been spent on child welfare services (as 
defined).
    To be eligible for CWS funding, States are required to 
develop a plan that meets a number of requirements as specified 
in Section 422. Among other things, States are required to: (1) 
assure that standards and requirements imposed for child day 
care provided under Title XX (Social Services Block Grant) are 
applied to day care provided under this program (except for 
eligibility requirements); (2) assure that the State will train 
and make effective use of paid paraprofessional staff in 
administering the program (with particular emphasis on the full 
or part-time employment of low income individuals as community 
services aides), and of volunteers (unpaid or partially paid) 
to provide services and assist any advisory committees 
established by the State agency; (3) describe the services to 
be provided with CWS funds and the geographic areas where the 
services will be available; (4) describe the steps the State 
will take to provide these services and to make progress in 
covering additional political subdivisions and to expand and 
strengthen the range of existing services; and (5) describe the 
State's child welfare services staff development and training 
plan.
    To be eligible for CWS funding, a State also must (since 
June 17, 1980) have completed an inventory of all children who 
had been in foster care for at least six months. Further, it 
must have reviewed State policies and judicial procedures 
regarding children abandoned shortly after birth (including 
policies related to legal representation of these children) and 
must be implementing policies and procedures determined (based 
on this review) to enable permanency decisions to be made 
expeditiously for abandoned children.
    Section 425 provides that other definitions related to 
Title IV-B are included in Section 475. There is no statutory 
definition of administrative costs for purposes of the CWS 
program.
    Funds appropriated for CWS are allotted to States 
(including territories) based on a statutory formula specified 
in Section 421.
    Section 424 specifies that if a State certifies that it 
will not need all of its allotment of CWS funding to carry out 
its plan, those funds must be available for re-allotment to 
other States by the Secretary. However, CWS funds that are 
withheld or recovered because of a State's failure to meet the 
State plan requirements outlined in Section 422(b)(10), 
commonly referred to as the foster child protection 
requirements, may not be re-allotted by the Secretary.
    Under Section 423, States are limited in the amount of 
Federal CWS funds that they may spend for foster care 
maintenance payments, adoption assistance payments and child 
day care necessary solely to allow the training or employment 
of a parent or relative with whom the child is living. No State 
may spend more of its Federal CWS funds for these purposes than 
the amount of the Federal funds it received for the CWS program 
in FY 1979 (when total Federal funding was $56.5 million). 
However, State expenditures on foster care maintenance payments 
may be counted as child welfare services for purposes of a 
State's satisfying the 25 percent match required to receive its 
full allotment of CWS funds.
    Section 423 further specifies that a State may not receive 
more Federal funding for the CWS program than it received in FY 
1979 unless the State maintains at least the level of non-
Federal (State and local) expenditures it spent for these 
services in FY 1979. In determining both what the State's FY 
1979 expenditure level was and what the State's current 
spending level is, States are to exclude all spending for 
foster care maintenance payments, adoption assistance payments, 
and child day care necessary solely to allow the training or 
employment of a parent or relative with whom the child is 
living.
    Section 426(b) authorizes $4 million for each of FYs 1988 
through 1990 to enable the Secretary to make grants to public 
or private non-profit entities to conduct demonstration 
projects to develop alternative care arrangements for healthy 
infants who would otherwise remain in inappropriate hospital 
settings.
    Section 429 authorizes the Secretary to provide grants to a 
public or non-profit institution of higher learning to provide 
stipends for child welfare worker traineeships.

Explanation of Provision

    The legislation maintains the annual discretionary 
authorization level of $325 million per year but limits the 
funding authorization to each of FYs 2007 through 2011 and 
moves this provision to Section 424. It eliminates the 
provision in Section 420 related to advance appropriations, 
including the provision related to making the transition from 
regular to advance appropriations.
    The legislation strikes the ``purpose'' provision contained 
in Section 420 and the provisions in Section 425 that (1) 
define child welfare services and (2) specify that money spent 
for certain activities is understood as spent for child welfare 
services. It creates a new Section 421 stating that the purpose 
of the CWS program is to promote State flexibility in the 
development and expansion of a coordinated child and family 
services program that utilizes community-based agencies and 
that ensures all children are raised in safe, loving families, 
by: (1) protecting and promoting the welfare of all children; 
(2) preventing the neglect, abuse, or exploitation of children; 
(3) supporting at-risk families through services which allow 
children, where appropriate, to remain safely with their 
families or return to their families in a timely manner; (4) 
promoting the safety, permanence and well-being of children in 
foster care; and (5) providing training, professional 
development and support to ensure a well-qualified child 
welfare workforce.
    The legislation eliminates the plan requirements in Section 
422 related to child day care standards and those related to 
the use of paraprofessionals or volunteers. It restates and 
renumbers the remaining provisions with generally the same 
intent. The legislation provides that States must describe the 
services and activities to be funded under the CWS program and 
how those services will achieve the purposes of the CWS 
program. It also requires a State to describe the steps it will 
take to provide child welfare services Statewide, to expand and 
strengthen the range of its existing services, and to develop 
and implement services to improve child outcomes. It requires 
the State to describe its child welfare services staff 
development and training plan.
    The legislation deletes the provision related to having 
completed an inventory of children in foster care. It clarifies 
that the State may include residential educational programs as 
a living arrangement for children for whom reunification, 
adoption, or guardianship have been ruled out as permanency 
goals, and rewrites the provision concerning policies and 
procedures for children abandoned shortly after birth to assert 
that a State must have in effect administrative and judicial 
procedures for children who are abandoned (at or shortly after 
birth) to ensure expeditious decisions can be made for their 
permanent placement.
    The legislation includes two new State plan requirements 
for the CWS program: (1) requiring a State to assure that no 
more than 10 percent of the expenditures (Federal and non-
Federal) made under the CWS program will be for administrative 
costs; and (2) outlining how the State will ensure that 
physicians or other appropriate medical professionals are 
actively consulted and involved in assessing the health and 
well-being of foster children and in determining appropriate 
medical treatment for these children.
    The legislation restates that other definitions related to 
Title IV-B are included in Section 475. It defines 
administrative costs as those costs that the State incurs as 
part of administering the CWS program, provided those costs are 
for procurement, payroll management, management, personnel 
functions (other than the portion of salaries of supervisors 
attributable to time spent directly supervising the provision 
of services by caseworkers), maintenance and operation of space 
and property, data processing and computer services, 
accounting, budgeting, auditing and travel expenses (other than 
those related to caseworker provision of services or oversight 
of programs funded under CWS).
    The legislation maintains the current allotment method 
while restating all of the allotment provisions to make 
stylistic changes, including adding subsection headings to 
describe subject matter and replacing ``per centum'' with 
``percentage.'' It also makes conforming changes related to 
proposed changes.
    The legislation maintains the basic allotment provisions 
but re-organizes them and includes subject headings. It deletes 
the provision prohibiting re-allotment of funds based on 
failure of a State to maintain the foster child protections 
required in the CWS State plan.
    The legislation generally prohibits use of CWS funds for 
child day care, foster care maintenance payments, or adoption 
assistance payments. However, it permits States that can 
document to the Secretary that they spent CWS funds for those 
purposes in FY 2005 to continue to do so, but limits the 
amounts for these types of expenditures to the lesser of the 
State's cap for these expenditures under current law or the 
total amount of Federal funds they received for these 
expenditures from CWS in FY 2005. Thus States are permitted to 
maintain current spending for these purposes, subject to the 
current law cap on such spending.
    The legislation deletes a provision allowing States to 
count spending on foster care maintenance payments for purposes 
of providing matching funds under the CWS program. It provides 
that in establishing what the required maintenance of effort 
level is, the State must include the funds it spent in FY 1979 
(under this program) for foster care maintenance payments, 
adoption assistance payments and child day care. At the same 
time, for the purpose of determining whether a State is meeting 
that maintenance of effort requirement in FY 2007 and 
subsequent fiscal years, the State must continue to exclude 
costs for expenditures related to those same activities.
    The legislation prohibits the Secretary from making any 
payment of CWS funds to a State for administrative costs that 
exceed 10 percent of the total (Federal and non-Federal) 
expenditures for the program.
    The legislation deletes Section 426(b) which authorized 
funding of certain demonstration projects in FY 1998, FY 1999 
and FY 1990.
    It moves all of the language in Section 429 to a new 
subsection of Section 426, and makes other changes to Title IV-
B related to the reordering or renumbering of provisions in the 
CWS program.

Reason for Change

    The legislation essentially reorganizes and updates the CWS 
program.
    Funding for CWS was first authorized in 1935 as part of the 
original Social Security Act (P.L. 74-271). Relatively few 
changes to this program have been made since 1980; thus 
provisions and changes included in this legislation are 
designed to ensure the focus of this program is on up-front 
prevention activities and services that support caseworkers in 
their efforts to protect children. For example, several 
provisions are meant to ensure that CWS program funds are spent 
on providing services to children and families, as opposed to 
foster care and adoption payments and child care expenses for 
which separate, and far larger, open-ended entitlement funds 
may be available each year. Especially given the limited amount 
of funds available for child protective services, and the 
significantly increased mandatory funding provided for those 
other purposes in recent years, this targeting of the CWS funds 
make sense.
    Finally, several provisions seek to better coordinate the 
CWS program with the PSSF program, which combined make 
available approximately $700 million per year for activities 
that promote safety and ensure children are not needlessly 
lingering in foster care. For example, the legislation provides 
for the authorization of the CWS program through FY 2011--i.e. 
the same duration as the reauthorization it provides for the 
PSSF program--anticipating that future Congresses will examine 
these related programs together and make decisions about 
whether each is satisfying its intended purposes or needs 
further improvement or other modification.

      SECTION 6. REAUTHORIZATION OF THE COURT IMPROVEMENT PROGRAM

Present Law

    For each of FYs 2002 through 2006, an eligible highest 
State court (with an approved application) is entitled to a 
share of funds to assess and make improvements to its handling 
of child welfare procedures. A set-aside of $10 million from 
the mandatory funds authorized and 3.3 percent of any 
discretionary appropriation is provided from the PSSF program 
to support the Court Improvement Program. To receive its full 
allotment of these funds the court, in each of FYs 2002 through 
2006, is required to provide at least 25 percent of the 
expenditures for this purpose.

Explanation of Provision

    The legislation extends both the entitlement to payment out 
of the PSSF set-asides and the related matching requirement for 
the courts to receive their share of these funds for each of 
FYs 2007 through 2011.

Reason for Change

    The Court Improvement Program has played an important role 
in assisting State courts in their efforts to expedite judicial 
proceedings for at-risk children. The legislation will ensure 
these funds continue to remain available, and is in addition to 
the $100 million provided over FYs 2006 through 2010 under the 
Deficit Reduction Act of 2005 (P.L. 109-171) to support 
training and data collection efforts of State courts.

    SECTION 7. REAUTHORIZATION OF PROGRAM FOR MENTORING CHILDREN OF 
                               PRISONERS

Present Law

    For each of FYs 2002 through 2006, present law authorizes 
the Secretary to make grants to support programs that provide 
mentoring services to children of prisoners. The law provides 
an indefinite authorization of appropriation of ``such sums as 
may be necessary'' for the Mentoring Children of Prisoners 
program.

Explanation of Provision

    The legislation extends the authority of the Secretary to 
make these grants for each of FYs 2007 through 2011 and limits 
the program's funding authorization of ``such sums as may be 
necessary'' to five years (FY 2007 through FY 2011).

Reason for Change

    Research indicates that children with incarcerated parents 
are seven times more likely than the general population to 
become incarcerated themselves, and are more likely to display 
a variety of behavioral, emotional, health, and educational 
problems. The continuation of this program will enable public 
and private organizations to establish or expand projects that 
provide one-on-one mentoring for children of incarcerated 
parents and those recently released from prison.

    SECTION 8. AVAILABILITY OF ADDITIONAL PROMOTING SAFE AND STABLE 
                FAMILIES RESOURCES FOR FISCAL YEAR 2006

Present Law

    In December 2005, the Departments of Labor, Health and 
Human Services, and Education and Related Agencies 
Appropriations Act, 2006 (P.L. 109-149) appropriated what was 
then the full mandatory funding authorization of $305 million 
for the PSSF program for FY 2006. Enacted in February 2006, the 
Deficit Reduction Act of 2005 (P.L. 109-171) raised the 
mandatory funding authorization for this program to $345 
million for FY 2006.
    States may expend PSSF program funds in the fiscal year for 
which they were appropriated and in the immediately following 
fiscal year (i.e. funds appropriated for FY 2006 may be spent 
in FY 2006 and in FY 2007).

Explanation of Provision

    The legislation provides the full FY 2006 mandatory funding 
authorization for the PSSF program by appropriating an 
additional $40 million in FY 2006 funds for the program. It 
allows a State to expend its allotment of this $40 million in 
FY 2006 PSSF funds in any of FY 2006, FY 2007 or FY 2008.

Reason for Change

    The legislation makes available the full $345 million in 
mandatory funding provided for FY 2006 for the PSSF program.

                           SECTION 9. REPORTS

Present Law

    States are required to develop a five-year plan for their 
use of PSSF funds, including goals established and services to 
be provided (in a given geographic area and to how many 
people). In addition, each State must annually review the 
services offered and any progress made toward achieving the 
goals established. The five-year plan, and annual review of 
services and progress, must be provided to the Secretary and 
made available to the public. As part of this same planning and 
review process, States also must submit some information 
related to their use of CWS funds.

Explanation of Provision

    The legislation requires the Secretary to prepare a 
biennial report showing by State, territory, and tribe: (1) the 
level of expenditures and the programs and activities funded 
under the PSSF and CWS programs; and (2) the number of children 
and families served under the programs. In addition, it 
requires the Secretary to report on how spending under these 
programs has helped achieve the child and family services goals 
established by each State, tribe, and territory, in the 
required planning processes for these programs.
    The legislation requires the Secretary to submit the first 
such biennial report to the House Committee on Ways and Means 
and the Senate Committee on Finance no later than July 1, 2008. 
Subsequent reports must be submitted not later than July 1 of 
every other year.

Reason for Change

    The Committee is interested in learning about the services 
and activities funded by the PSSF and CWS programs, and the 
populations served by these child protection programs.

                      SECTION 10. EFFECTIVE DATES

Present Law

    Not applicable.

Explanation of Provision

    The amendments made by this act take effect as of the first 
day of FY 2007--except that the appropriation of FY 2006 funds 
for the PSSF program is effective immediately upon the 
legislation's enactment. In addition, if the Secretary 
determines that State legislation is required in order for a 
State to meet any new requirement under this act, the State has 
until the completion of the first State legislative session 
after enactment of this act to comply with such new 
requirements.

Reason for Change

    The legislation provides for the effective date of these 
changes, while allowing States ample time to make any necessary 
changes to State laws.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the vote of the Committee on Ways and Means in its 
consideration of the bill, H.R. 5640.

                       MOTION TO REPORT THE BILL

    The bill, H.R. 5640, as amended, was ordered favorably 
reported by a voice vote (with a quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made concerning the effects on the budget of this bill, H.R. 
5640, as reported: The Committee agrees with the estimate 
prepared by the Congressional Budget Office (CBO) which is 
included below.

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
Committee bill increases authorization levels by $1 billion 
over the 2007-2011 period. Certain child welfare programs 
categorized as direct spending also would be reauthorized by 
the bill, but the costs of extending these programs are already 
included in CBO's baseline. Therefore, this bill would not 
result in an estimated change in direct spending relative to 
baseline projections.

      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 report prepared by the CBO 
is provided.

                                                     July 10, 2006.
Hon. William ``Bill'' M. Thomas,
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. 5640, the Child 
and Family Services Improvement Act of 2006.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Christina 
Hawley Anthony.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 5640--Child and Family Services Improvement Act of 2006

    Summary: H.R. 5640 would amend part B of title IV of the 
Social Security Act to reauthorize various child welfare 
programs and to direct funding to support monthly casework 
visits for foster children. The bill would increase 
authorization levels by $1 billion over the 2007-2011 period, 
and, assuming the appropriation of the authorized amounts, 
would result in additional outlays of $780 million over the 
same period.
    Certain child welfare programs categorized as direct 
spending also would be reauthorized by the bill. As required by 
the Deficit Control Act, the costs of extending those mandatory 
programs--$1.4 billion over the 2007-2011 period--are already 
included in CBO's baseline. Therefore, enacting H.R. 5640 would 
not result in an estimated change in direct spending relative 
to those baseline projections.
    H.R. 5640 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would benefit state, local, and tribal governments and 
any costs they incur would result from complying with 
conditions of federal assistance.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5640 is shown in the following table. 
The costs of this legislation fall within budget function 500 
(education, training, employment, and social services).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2006      2007      2008      2009      2010      2011
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law:
    Estimated Authorization Level \1\...............       425       375       376       377       378       379
    Estimated Outlays...............................       424       430       390       380       377       378
Proposed Changes:
    Authorization Level.............................         0       200       200       200       200       200
    Estimated Outlays...............................         0        40       150       190       200       200
Spending Under H.R. 5640:
    Estimated Authorization Level \1\...............       425       575       576       577       578       579
    Estimated Outlays...............................       424       470       540       570       577       578
Memorandum:
Direct Spending from Program Extensions Assumed in
 CBO's Baseline:
    Estimated Budget Authority......................      n.a.       345       345       345       345       345
    Estimated Outlays...............................      n.a.        93       283       328       345       345
----------------------------------------------------------------------------------------------------------------
\1\ The 2006 level is the amount appropriated for that year for Promoting Safe and Stable Families, Child
  Welfare Services, and Mentoring Children of Prisoners.
NOTE: n.a.= not applicable.

Basis of estimate

    For this estimate, CBO assumes that the legislation will be 
enacted near the end of fiscal year 2006, and that the 
authorized amounts will be appropriated for fiscal year 2007 
and subsequent years. The estimated outlays reflect historical 
spending patterns for these programs.
    The bill would amend and reauthorize the Promoting Safe and 
Stable Families (PSSF) program, Child Welfare Services (CWS), 
and the Mentoring Children of Prisoners program. PSSF is 
currently authorized through fiscal year 2006, and receives 
both mandatory and discretionary funding. Funding for the 
mandatory part of PSSF is $345 million for fiscal year 2006; 
the discretionary portion received an appropriation of $89 
million for this year. Reauthorization of PSSF would have no 
effect on direct spending relative to CBO's baseline because 
those mandatory costs are already assumed in the baseline.
    The other two programs affected by this bill--Child Welfare 
Services and the Mentoring Children of Prisoners program--are 
permanently authorized. CWS is authorized at $325 million per 
year, while the Mentoring Children of Prisoners program is 
authorized at ``such sums as may be necessary.'' The programs 
received funding of $287 million and $49 million, respectively, 
for 2006.
            Spending subject to appropriation
    The bill would reauthorize discretionary grants under Title 
IV-B of the Social Security Act, including the PSSF program, 
CWS, and the program for mentoring children of prisoners. PSSF 
currently is authorized through fiscal year 2006. The other 
programs are permanently authorized.
    Promoting Safe and Stable Families. Discretionary 
appropriations for PSSF totaled $89 million for 2006. H.R. 5640 
would authorize appropriations for the discretionary PSSF 
grants at $200 million annually from 2007 through 2011, for a 
total of $1 billion over that five-year period. Based on 
historical spending rates for the program, CBO estimates that 
resulting outlays would total $780 million over the 2007-2011 
period.
    Child Welfare Services. The bill would authorize the 
appropriation of $325 million for fiscal years 2007 through 
2011 for grants to states for child welfare services. Such 
grants are permanently authorized at that level under current 
law. Thus, the proposed change would not alter authorizations 
over the next five years for CWS.
    Mentoring Children of Prisoners. H.R. 5640 would authorize 
the appropriation of such sums as may be necessary for the 
Mentoring Children of Prisoners program from 2007 through 2011. 
The program, which is permanently authorized, received an 
appropriation of $49 million for fiscal year 2006. For the 
purpose of this estimate, CBO estimates the ``such sums'' 
authorizations under current law by adjusting the 2006 
appropriation for inflation. Because the bill would not change 
the current-law authorization for this program, CBO estimates 
that its enactment would result in no change for the 2007-2011 
period.
            Direct spending
    H.R. 5640 would reauthorize mandatory grants under the PSSF 
program at $345 million each year for fiscal years 2007 through 
2011. Those grants currently are authorized at $345 million for 
fiscal year 2006. Under the procedures specified in section 257 
of the Deficit Control Act, the costs of extending PSSF are 
assumed in CBO's baseline. The bill would reserve $40 million 
of those funds for grants to states to support monthly visits 
to foster children by caseworkers.
    Provisions in section 5 of the bill could result in added 
costs for the federal program that provides federal matching 
funds to states for foster care and adoption assistance because 
it would restrict the amount of funds that could be spent under 
the CWS grants for foster care, adoption assistance, and child 
care activities. Although the vast majority of CWS funds that 
are spent on such activities go to expenses that would not be 
reimbursable under the federal program for foster care and 
adoption assistance, it is possible that the proposed 
restriction could result in increased claims under that 
program. The federal cost of any additional claims is likely to 
be less than $500,000 each year, CBO estimates. (CBO estimates 
that this change would have no effect on mandatory spending for 
child care activities.)
    Intergovernmental and private-sector impact: H.R. 5640 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. State, local, and tribal governments would 
benefit from grant funds authorized in the bill. Any costs they 
incur from increased reporting of data would result from 
complying with conditions of federal assistance.
    Previous CBO estimate: On June 21, 2006, CBO transmitted a 
cost estimate for S. 3525, the Improving Outcomes for Children 
Affected by Meth Act of 2006, as ordered reported by the Senate 
Committee on Finance on June 8, 2006. That bill does not 
address the authorization of CWS, and would authorize the 
Mentoring Children of Prisoners program at $67 million per year 
from 2007 through 2011, as compared with the authorization of 
such sums as may be necessary in H.R. 5640.
    Estimate prepared by: Federal Costs: Christina Hawley 
Anthony and Jonathan Morancy; impact on state, local, and 
tribal governments: Lisa Ramirez-Branum; impact on the private 
sector: Molly Dahl.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

 V. OTHER MATTERS REQUIRED 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 (relating to oversight findings), 
the Committee, based on public hearing testimony and 
information from the Administration, concluded that it is 
appropriate and timely to consider the bill as reported.

        B. Statement of General Performance Goals and Objectives

    In compliance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
Child and Family Services Improvement Act of 2006 reauthorizes 
and makes improvements to the PSSF and CWS programs and other 
programs within the Committee's jurisdiction. Through reporting 
requirements in the legislation, Congress and the 
Administration will be able to assess State achievement of 
specified program goals.

                 C. Constitutional Authority Statement

    With respect to clause 3(d)(1) of the rule XIII of the 
Rules of the House of Representatives (relating to 
Constitutional Authority), the Committee states that the 
Committee's action in reporting this bill is derived from 
Article I of the Constitution, Section 8 (``The Congress shall 
have power to lay and collect taxes, duties, imposts and 
excises . . .''), and from the 16th Amendment to the 
Constitution.

              D. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Act of 1995 (P.L. 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.

       VI. CHANGES IN EXISTING LAWS 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, existing law in which no change is 
proposed is shown in roman):

SOCIAL SECURITY ACT

           *       *       *       *       *       *       *

TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
CHILDREN AND FOR CHILD-WELFARE SERVICES

           *       *       *       *       *       *       *

                   PART B--CHILD AND FAMILY SERVICES

                   Subpart 1--Child Welfare Services

                             [APPROPRIATION

  [Sec. 420. (a) For the purpose of enabling the United States, 
through the Secretary, to cooperate with State public welfare 
agencies in establishing, extending, and strengthening child 
welfare services, there is authorized to be appropriated for 
each fiscal year the sum of $325,000,000.
  [(b) Funds appropriated for any fiscal year pursuant to the 
authorization contained in subsection (a) shall be included in 
the appropriation Act (or supplemental appropriation Act) for 
the fiscal year preceding the fiscal year for which such funds 
are available for obligation. In order to effect a transition 
to this method of timing appropriation action, the preceding 
sentence shall apply notwithstanding the fact that its initial 
application will result in the enactment in the same year 
(whether in the same appropriation Act or otherwise) of two 
separate appropriations, one for the then current fiscal year 
and one for the succeeding fiscal year.]

                                PURPOSE

  Sec. 421. The purpose of this subpart is to promote State 
flexibility in the development and expansion of a coordinated 
child and family services program that utilizes community-based 
agencies and ensures all children are raised in safe, loving 
families, by--
          (1) protecting and promoting the welfare of all 
        children;
          (2) preventing the neglect, abuse, or exploitation of 
        children;
          (3) supporting at-risk families through services 
        which allow children, where appropriate, to remain 
        safely with their families or return to their families 
        in a timely manner;
          (4) promoting the safety, permanence, and well-being 
        of children in foster care; and
          (5) providing training, professional development and 
        support to ensure a well-qualified child welfare 
        workforce.

                 STATE PLANS FOR CHILD WELFARE SERVICES

  Sec. 422. (a) * * *
  (b) Each plan for child welfare services under this subpart 
shall--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) provide that the standards and requirements 
        imposed with respect to child day care under title XX 
        shall apply with respect to day care services under 
        this part, except insofar as eligibility for such 
        services is involved;
          [(4) provide for the training and effective use of 
        paid paraprofessional staff, with particular emphasis 
        on the full-time or part-time employment of persons of 
        low income, as community service aides, in the 
        administration of the plan, and for the use of nonpaid 
        or partially paid volunteers in providing services and 
        in assisting any advisory committees established by the 
        State agency;
          [(5) contain a description of the services to be 
        provided and specify the geographic areas where such 
        services will be available;
          [(6) contain a description of the steps which the 
        State will take to provide child welfare services and 
        to make progress in--
                  [(A) covering additional political 
                subdivisions,
                  [(B) reaching additional children in need of 
                services, and
                  [(C) expanding and strengthening the range of 
                existing services and developing new types of 
                services,
        along with a description of the State's child welfare 
        services staff development and training plans;]
          (3) include a description of the services and 
        activities which the State will fund under the State 
        program carried out pursuant to this subpart, and how 
        the services and activities will achieve the purpose of 
        this subpart;
          (4) contain a description of--
                  (A) the steps the State will take to provide 
                child welfare services statewide and to expand 
                and strengthen the range of existing services 
                and develop and implement services to improve 
                child outcomes; and
                  (B) the child welfare services staff 
                development and training plans of the State;
          [(7)] (5) provide, in the development of services for 
        children, for utilization of the facilities and 
        experience of voluntary agencies in accordance with 
        State and local programs and arrangements, as 
        authorized by the State;
          [(8)] (6) provide that the agency administering or 
        supervising the administration of the plan will furnish 
        such reports, containing such information, and 
        participate in such evaluations, as the Secretary may 
        require;
          [(9)] (7) provide for the diligent recruitment of 
        potential foster and adoptive families that reflect the 
        ethnic and racial diversity of children in the State 
        for whom foster and adoptive homes are needed;
          [(10)] (8) provide assurances that the State--
                  [(A) since June 17, 1980, has completed an 
                inventory of all children who, before the 
                inventory, had been in foster care under the 
                responsibility of the State for 6 months or 
                more, which determined--
                          [(i) the appropriateness of, and 
                        necessity for, the foster care 
                        placement;
                          [(ii) whether the child could or 
                        should be returned to the parents of 
                        the child or should be freed for 
                        adoption or other permanent placement; 
                        and
                          [(iii) the services necessary to 
                        facilitate the return of the child or 
                        the placement of the child for adoption 
                        or legal guardianship;]
                  [(B)] (A) is operating, to the satisfaction 
                of the Secretary--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) a service program designed to 
                        help children--
                                  (I) * * *
                                  (II) be placed for adoption, 
                                with a legal guardian, or if 
                                adoption or legal guardianship 
                                is determined not to be 
                                appropriate for a child, in 
                                some other planned, permanent 
                                living arrangement, which may 
                                include a residential 
                                educational program; and

           *       *       *       *       *       *       *

                  [(C)(i) has reviewed (or within 12 months 
                after the date of the enactment of this 
                paragraph will review) State policies and 
                administrative and judicial procedures in 
                effect for children abandoned at or shortly 
                after birth (including policies and procedures 
                providing for legal representation of such 
                children); and
                  [(ii) is implementing (or within 24 months 
                after the date of the enactment of this 
                paragraph will implement) such policies and 
                procedures as the State determines, on the 
                basis of the review described in clause (i), to 
                be necessary to enable permanent decisions to 
                be made expeditiously with respect to the 
                placement of such children;]
                  (B) has in effect policies and administrative 
                and judicial procedures for children abandoned 
                at or shortly after birth which enable 
                permanent decisions to be made expeditiously 
                with respect to the placement of the children;
          [(11)] (9) contain a description, developed after 
        consultation with tribal organizations (as defined in 
        section 4 of the Indian Self-Determination and 
        Education Assistance Act) in the State, of the specific 
        measures taken by the State to comply with the Indian 
        Child Welfare Act;
          [(12)] (10) contain assurances that the State shall 
        develop plans for the effective use of cross-
        jurisdictional resources to facilitate timely adoptive 
        or permanent placements for waiting children;
          [(13)] (11) contain a description of the activities 
        that the State has undertaken for children adopted from 
        other countries, including the provision of adoption 
        and post-adoption services;
          [(14)] (12) provide that the State shall collect and 
        report information on children who are adopted from 
        other countries and who enter into State custody as a 
        result of the disruption of a placement for adoption or 
        the dissolution of an adoption, including the number of 
        children, the agencies who handled the placement or 
        adoption, the plans for the child, and the reasons for 
        the disruption or dissolution; [and]
          [(15)] (13) demonstrate substantial, ongoing, and 
        meaningful collaboration with State courts in the 
        development and implementation of the State plan under 
        subpart 1, the State plan approved under subpart 2, and 
        the State plan approved under part E, and in the 
        development and implementation of any program 
        improvement plan required under section 1123A[.];
          (14) include assurances that not more than 10 percent 
        of the expenditures of the State with respect to 
        activities funded from amounts provided under this 
        subpart will be for administrative costs; and
          (15) outlines how the State will ensure that 
        physicians or other appropriate medical professionals 
        are actively consulted and involved in--
                  (A) assessing the health and well-being of 
                children in foster care under the 
                responsibility of the State; and
                  (B) determining appropriate medical treatment 
                for the children.
  (c) Definitions.--In this subpart:
          (1) Administrative costs.--The term ``administrative 
        costs'' means costs for the following, but only to the 
        extent incurred in administering the State plan 
        developed pursuant to this subpart: procurement, 
        payroll management, personnel functions (other than the 
        portion of the salaries of supervisors attributable to 
        time spent directly supervising the provision of 
        services by caseworkers), management, maintenance and 
        operation of space and property, data processing and 
        computer services, accounting, budgeting, auditing, and 
        travel expenses (except those related to the provision 
        of services by caseworkers or the oversight of programs 
        funded under this subpart).
          (2) Other terms.--For definitions of other terms used 
        in this part, see section 475.

                          ALLOTMENTS TO STATES

  Sec. [421] 423. (a) In General._The sum appropriated pursuant 
to section [420] 425 for each fiscal year shall be allotted by 
the Secretary for use by cooperating State public welfare 
agencies which have plans developed jointly by the State agency 
and the Secretary as follows: [He] The Secretary shall first 
allot $70,000 to each State, and shall then allot to each State 
an amount which bears the same ratio to the remainder of such 
sum as the product of (1) the population of the State under the 
age of twenty-one and (2) the allotment percentage of the State 
(as determined under this section) bears to the sum of the 
corresponding products of all the States.
  (b) Determination of State Allotment Percentages._The 
``allotment percentage'' for any State shall be 100 [per 
centum] percent less the State percentage; and the State 
percentage shall be the percentage which bears the same ratio 
to 50 [per centum] percent as the per capita income of such 
State bears to the per capita income of the United States; 
except that (1) the allotment percentage shall in no case be 
less than 30 [per centum] percent or more than 70 [per centum] 
percent, and (2) the allotment percentage shall be 70 [per 
centum] percent in the case of Puerto Rico, the Virgin Islands, 
Guam, and American Samoa.
  (c) Promulgation of State Allotment Percentages._The 
allotment percentage for each State shall be promulgated by the 
Secretary between October 1 and November 30 of each even-
numbered year, on the basis of the average per capita income of 
each State and of the United States for the three most recent 
calendar years for which satisfactory data are available from 
the Department of Commerce. Such promulgation shall be 
conclusive for each of the two fiscal years in the period 
beginning October 1 next succeeding such promulgation.
  (d) United States Defined._For purposes of this section, the 
term ``United States'' means the [fifty] 50 States and the 
District of Columbia.
  (e) Reallotment of Funds.--
          (1) In general.--The amount of any allotment to a 
        State for a fiscal year under the preceding provisions 
        of this section which the State certifies to the 
        Secretary will not be required for carrying out the 
        State plan developed as provided in section 422 shall 
        be available for reallotment from time to time, on such 
        dates as the Secretary may fix, to other States which 
        the Secretary determines--
                  (A) need sums in excess of the amounts 
                allotted to such other States under the 
                preceding provisions of this section, in 
                carrying out their State plans so developed; 
                and
                  (B) will be able to so use such excess sums 
                during the fiscal year.
          (2) Considerations.--The Secretary shall make the 
        reallotments on the basis of the State plans so 
        developed, after taking into consideration--
                  (A) the population under 21 years of age;
                  (B) the per capita income of each of such 
                other States as compared with the population 
                under 21 years of age; and
                  (C) the per capita income of all such other 
                States with respect to which such a 
                determination by the Secretary has been made.
          (3) Amounts reallotted to a state amounts deemed part 
        of state allotment.--Any amount so reallotted to a 
        State is deemed part of the allotment of the State 
        under this section.

                           PAYMENT TO STATES

  Sec. [423] 424. (a) From the sums appropriated therefor and 
the allotment under this subpart, subject to the conditions set 
forth in this section, the Secretary shall from time to time 
pay to each State that has a plan developed in accordance with 
section 422 an amount equal to 75 [per centum] percent of the 
total sum expended under the plan (including the cost of 
administration of the plan) in meeting the costs of State, 
district, county, or other local child welfare services.

           *       *       *       *       *       *       *

  (c)(1) [No] Except as provided in paragraph (2), no payment 
may be made to a State under this part[, for any fiscal year 
beginning after September 30, 1979,] with respect to State 
expenditures made for (A) child day care [necessary solely 
because of the employment, or training to prepare for 
employment, of a parent or other relative with whom the child 
involved is living], (B) foster care maintenance payments, and 
(C) adoption assistance payments[, to the extent that the 
Federal payment with respect to those expenditures would exceed 
the total amount of the Federal payment under this part for 
fiscal year 1979].
  [(2) Expenditures made by a State for any fiscal year which 
begins after September 30, 1979, for foster care maintenance 
payments shall be treated for purposes of making Federal 
payments under this part with respect to expenditures for child 
welfare services, as if such foster care maintenance payments 
constituted child welfare services of a type to which the 
limitation imposed by paragraph (1) does not apply; except that 
the amount payable to the State with respect to expenditures 
made for other child welfare services and for foster care 
maintenance payments during any such year shall not exceed 100 
per centum of the amount of the expenditures made for child 
welfare services for which payment may be made under the 
limitation imposed by paragraph (1) as in effect without regard 
to this paragraph.]
  (2) In the case of a State which demonstrates to the 
Secretary that the State made an expenditure described in 
paragraph (1) in fiscal year 2005, the Secretary shall not make 
a payment to the State under this part for any fiscal year 
beginning after September 30, 2006, with respect to the State 
expenditures so described, to the extent that the Federal 
payment with respect to the expenditures so described for the 
fiscal year exceeds the lesser of--
          (A) the total amount of the Federal payment under 
        this part for fiscal year 1979; or
          (B) the total amount of the Federal payment with 
        respect to the expenditures so described for fiscal 
        year 2005.
  (d) No payment may be made to a State under this part in 
excess of the payment made under this part for fiscal year 
1979, for any fiscal year beginning after September 30, 1979, 
if for the latter fiscal year the total of the State's 
expenditures for child welfare services under this part 
[(excluding expenditures for activities specified in subsection 
(c)(1))] is less than the total of the State's expenditures 
under this part (excluding expenditures for [such activities] 
activities specified in subsection (c)(1)) for fiscal year 
1979.
  (e) Limitation on Reimbursement for Administrative Costs.--
The Secretary shall not make a payment to a State under this 
section with respect to expenditures during a fiscal year for 
administrative costs, to the extent that the total amount of 
the expenditures exceeds 10 percent of the total expenditures 
of the State during the fiscal year for activities funded from 
amounts provided under this subpart.

                              [REALLOTMENT

  [Sec. 424. (a) In General.--Subject to subsection (b), the 
amount of any allotment to a State under section 421 for any 
fiscal year which the State certifies to the Secretary will not 
be required for carrying out the State plan developed as 
provided in section 422 shall be available for reallotment from 
time to time, on such dates as the Secretary may fix, to other 
States which the Secretary determines (1) have need in carrying 
out their State plans so developed for sums in excess of those 
previously allotted to them under section 421 and (2) will be 
able to use such excess amounts during such fiscal year. Such 
reallotments shall be made on the basis of the State plans so 
developed, after taking into consideration the population under 
the age of twenty-one, and the per capita income of each such 
State as compared with the population under the age of twenty-
one, and the per capita income of all such States with respect 
to which such a determination by the Secretary has been made. 
Any amount so reallotted to a State shall be deemed part of its 
allotment under section 421.
  [(b) Exception Relating to Foster Child Protections.--The 
Secretary shall not reallot under subsection (a) of this 
section any amount that is withheld or recovered from a State 
due to the failure of the State to meet the requirements of 
section 422(b)(10).

                              [DEFINITIONS

  [Sec. 425. (a)(1) For purposes of this title, the term 
``child welfare services'' means public social services which 
are directed toward the accomplishment of the following 
purposes: (A) protecting and promoting the welfare of all 
children, including handicapped, homeless, dependent, or 
neglected children; (B) preventing or remedying, or assisting 
in the solution of problems which may result in, the neglect, 
abuse, exploitation, or delinquency of children; (C) preventing 
the unnecessary separation of children from their families by 
identifying family problems, assisting families in resolving 
their problems, and preventing breakup of the family where the 
prevention of child removal is desirable and possible; (D) 
restoring to their families children who have been removed, by 
the provision of services to the child and the families; (E) 
placing children in suitable adoptive homes, in cases where 
restoration to the biological family is not possible or 
appropriate; and (F) assuring adequate care of children away 
from their homes, in cases where the child cannot be returned 
home or cannot be placed for adoption.
  [(2) Funds expended by a State for any calendar quarter to 
comply with section 422(b)(10) or 476(b), and funds expended 
with respect to nonrecurring costs of adoption proceedings in 
the case of children placed for adoption with respect to whom 
assistance is provided under a State plan for adoption 
assistance approved under part E of this title, shall be deemed 
to have been expended for child welfare services.
  [(b) For other definitions relating to this part and to part 
E of this title, see section 475 of this Act.]

             LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS

  Sec. 425. To carry out this subpart, there are authorized to 
be appropriated to the Secretary not more than $325,000,000 for 
each of fiscal years 2007 through 2011.

             RESEARCH, TRAINING, OR DEMONSTRATION PROJECTS

  Sec. 426. (a) * * *
  [(b)(1) There are authorized to be appropriated $4,000,000 
for each of the fiscal years 1988, 1989, and 1990 for grants by 
the Secretary to public or private nonprofit entities 
submitting applications under this subsection for the purpose 
of conducting demonstration projects under this subsection to 
develop alternative care arrangements for infants who do not 
have health conditions that require hospitalization and who 
would otherwise remain in inappropriate hospital settings.
  [(2) The demonstration projects conducted under this section 
may include--
          [(A) multidisciplinary projects designed to prevent 
        the inappropriate hospitalization of infants and to 
        allow infants described in paragraph (1) to remain with 
        or return to a parent in a residential setting, where 
        appropriate care for the infant and suitable treatment 
        for the parent (including treatment for drug or alcohol 
        addiction) may be assured, with the goal (where 
        possible) of rehabilitating the parent and eliminating 
        the need for such care for the infant;
          [(B) multidisciplinary projects that assure 
        appropriate, individualized care for such infants in a 
        foster home or other non-medical residential setting in 
        cases where such infant does not require 
        hospitalization and would otherwise remain in 
        inappropriate hospital settings, including projects to 
        demonstrate methods to recruit, train, and retain 
        foster care families; and
          [(C) such other projects as the Secretary determines 
        will best serve the interests of such infants and will 
        serve as models for projects that agencies or 
        organizations in other communities may wish to develop.
  [(3) In the case of any project which includes the use of 
funds authorized under this subsection for the care of infants 
in foster homes or other non-medical residential settings away 
from their parents, there shall be developed for each such 
infant a case plan of the type described in section 475(1) (to 
the extent that such infant is not otherwise covered by such a 
plan), and each such project shall include a case review system 
of the type described in section 475(5) (covering each such 
infant who is not otherwise subject to such a system).
  [(4) In evaluating applications from entities proposing to 
conduct demonstration projects under this subsection, the 
Secretary shall give priority to those projects that serve 
areas most in need of alternative care arrangements for infants 
described in paragraph (1).
  [(5) No project may be funded unless the application therefor 
contains assurances that it will--
          [(A) provide for adequate evaluation;
          [(B) provide for coordination with local governments;
          [(C) provide for community education regarding the 
        inappropriate hospitalization of infants;
          [(D) use, to the extent practical, other available 
        private, local, State, and Federal sources for the 
        provision of direct services; and
          [(E) meet such other criteria as the Secretary may 
        prescribe.
  [(6) Grants may be used to pay the costs of maintenance and 
of necessary medical and social services (to the extent that 
these costs are not otherwise paid for under other titles of 
this Act), and for such other purposes as the Secretary may 
allow.
  [(7) The Secretary shall provide training and technical 
assistance to grantees, as requested.]
  [(c)] (b) Payments of grants or under contracts or 
cooperative arrangements under this section may be made in 
advance or by way of reimbursement, and in such installments, 
as the Secretary may determine; and shall be made on such 
conditions as the Secretary finds necessary to carry out the 
purposes of the grants, contracts, or other arrangements.

                      [CHILD WELFARE TRAINEESHIPS

  [Sec. 429. The Secretary]
  (c) Child Welfare Traineeships.--The Secretary may approve an 
application for a grant to a public or nonprofit institution 
for higher learning to provide traineeships with stipends under 
section 426(a)(1)(C) only if the application--
          (1) * * *

           *       *       *       *       *       *       *

                PAYMENTS TO INDIAN TRIBAL ORGANIZATIONS

  Sec. 428. (a) * * *
  (b) Amounts paid under subsection (a) shall be deemed to be a 
part of the allotment (as determined under section [421] 423) 
for the State in which such Indian tribal organization is 
located.

SEC. [429A] 429. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

  (a) * * *

           *       *       *       *       *       *       *

             Subpart 2--Promoting Safe and Stable Families

[SEC. 430. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds that there is a continuing 
urgent need to protect children and to strengthen families as 
demonstrated by the following:
          [(1) Family support programs directed at specific 
        vulnerable populations have had positive effects on 
        parents, children, or both. The vulnerable populations 
        for which programs have been shown to be effective 
        include teenage mothers with very young children and 
        families that have children with special needs.
          [(2) Family preservation programs have been shown to 
        provide extensive and intensive services to families in 
        crisis.
          [(3) The time lines established by the Adoption and 
        Safe Families Act of 1997 have made the prompt 
        availability of services to address family problems 
        (and in particular the prompt availability of 
        appropriate services and treatment addressing substance 
        abuse) an important factor in successful family 
        reunification.
          [(4) The rapid increases in the annual number of 
        adoptions since the enactment of the Adoption and Safe 
        Families Act of 1997 have created a growing need for 
        postadoption services and for service providers with 
        the particular knowledge and skills required to address 
        the unique issues adoptive families and children may 
        face.]
  [(b) Purpose.--The purpose]

SEC. 430. PURPOSE.

  The purpose of this program is to enable States to develop 
and establish, or expand, and to operate coordinated programs 
of community-based family support services, family preservation 
services, time-limited family reunification services, and 
adoption promotion and support services to accomplish the 
following objectives:
          (1) * * *

           *       *       *       *       *       *       *

SEC. 431. DEFINITIONS.

  (a) In General.--As used in this subpart:
          (1) * * *

           *       *       *       *       *       *       *

          (6) Indian tribe.--The term ``Indian tribe'' means 
        any Indian tribe (as defined in section 482(i)(5), as 
        in effect before August 22, [1986] 1996) and any Alaska 
        Native organization (as defined in section 
        482(i)(7)(A), as so in effect).

           *       *       *       *       *       *       *

SEC. 432. STATE PLANS.

  (a) * * *
  (b) Approval of Plans.--
          (1) * * *
          (2) Plans of indian tribes.--
                  [(A) Exemption from inappropriate 
                requirements.--The Secretary may exempt a plan 
                submitted by an Indian tribe from any 
                requirement of this section that the Secretary 
                determines would be inappropriate to apply to 
                the Indian tribe, taking into account the 
                resources, needs, and other circumstances of 
                the Indian tribe.]
                  (A) Intertribal consortia.--This subpart 
                shall not be interpreted to preclude the 
                development and submission of a single tribal 
                plan under this subpart by the participating 
                tribes of an intertribal consortium.
                  (B) Special rule.--[Notwithstanding 
                subparagraph (A) of this paragraph, the] The 
                Secretary may not approve a plan of an Indian 
                tribe or tribal consortium under this subpart 
                to which (but for this subparagraph) an 
                allotment of less than $10,000 would be made 
                under section 433(a) if allotments were made 
                under section 433(a) to all Indian tribes and 
                tribal consortia with plans approved under this 
                subpart with the same or larger numbers of 
                children.

SEC. 433. ALLOTMENTS TO STATES.

  (a) * * *
  (b) Territories.--From the amount described in section 436(a) 
for any fiscal year that remains after applying section 436(b) 
for the fiscal year, the Secretary shall allot to each of the 
jurisdictions of Puerto Rico, Guam, the Virgin Islands, the 
Northern Mariana Islands, and American Samoa an amount 
determined in the same manner as the allotment to each of such 
jurisdictions is determined under section [421] 423.

           *       *       *       *       *       *       *

  (d) Reallotments.--The amount of any allotment to a State 
under subsection (a), (b), or (c) of this section for any 
fiscal year that the State certifies to the Secretary will not 
be required for carrying out the State plan under section 432 
shall be available for reallotment using the allotment 
methodology specified in subsection (a), (b), or (c) of this 
section. Any amount so reallotted to a State is deemed part of 
the allotment of the State under the preceding provisions of 
this section.
  (e) Special Rules Applicable to Funds Reserved to Support 
Monthly Caseworker Visits.--
          (1) Allotments.--
                  (A) Territories.--From the amount reserved 
                pursuant to section 436(b)(4)(A) for fiscal 
                year 2006 or any succeeding fiscal year, the 
                Secretary shall allot to each jurisdiction 
                specified in subsection (b) of this section 
                that meets the requirements of paragraph (2) of 
                this subsection for the fiscal year an amount 
                determined in the same manner as the allotment 
                to each of such jurisdictions is determined 
                under section 423 (without regard to the 
                initial allotment of $70,000 to each State).
                  (B) Other states.--From the amount reserved 
                pursuant to section 436(b)(4)(A) for fiscal 
                year 2006 or any succeeding fiscal year that 
                remains after applying subparagraph (A) of this 
                paragraph for the fiscal year, the Secretary 
                shall allot to each State (other than an Indian 
                tribe) not specified in subsection (b) of this 
                section that meets the requirements of 
                paragraph (2) of this subsection for the fiscal 
                year an amount equal to such remaining amount 
                multiplied by the food stamp percentage of the 
                State (as defined in subsection (c)(2) of this 
                section) for the fiscal year, except that in 
                applying subsection (c)(2)(A) of this section, 
                ``subsection (e)(1)(B)'' shall be substituted 
                for ``such paragraph (1)''.
          (2) Requirements.--The requirements of this paragraph 
        are the following:
                  (A) Amounts allotted for fiscal year 2007.--
                In the case of amounts reserved pursuant to 
                section 436(b)(4)(A) for fiscal year 2007, the 
                State has provided to the Secretary data which 
                shows, for the most recent fiscal year for 
                which such information is available--
                          (i) the percentage of children in 
                        foster care under the responsibility of 
                        the State who were visited by the 
                        caseworker handling the case of the 
                        child at least once each month while 
                        the child was in such care; and
                          (ii) the percentage of the visits 
                        that occurred in the residence of the 
                        child.
                  (B) Amounts allotted for succeeding fiscal 
                years.--In the case of amounts reserved 
                pursuant to section 436(b)(4)(A) for fiscal 
                year 2008 or any succeeding fiscal year:
                          (i) Data showing frequency and 
                        location of caseworker visits.--The 
                        State has provided to the Secretary 
                        data which shows, for the preceding 
                        fiscal year, that--
                                  (I) for at least 90 percent 
                                of the children in foster care 
                                under the responsibility of the 
                                State--
                                          (aa) the caseworker 
                                        handling the case of 
                                        the child visited the 
                                        child at least once 
                                        each month while the 
                                        child was in such care; 
                                        and
                                          (bb) the majority of 
                                        the visits occurred in 
                                        the residence of the 
                                        child; or
                                  (II) the State made the 
                                requisite annual progress, as 
                                determined by the Secretary, to 
                                comply with subclause (I) by 
                                October 1, 2011.
                          (ii) State ability to verify 
                        frequency of caseworker visits.--The 
                        Secretary has verified that the State 
                        has in effect such policies and 
                        standards as may be necessary to enable 
                        the State to determine whether, for at 
                        least 90 percent of the children in 
                        foster care under the responsibility of 
                        the State, a caseworker visited the 
                        child at least once each month during 
                        the fiscal year.
                          (iii) Verification of 
                        nonsupplantation compliance.--The State 
                        has provided to the Secretary such 
                        documentation as may be necessary to 
                        verify that the State has complied with 
                        section 436(b)(4)(B)(ii) during the 
                        fiscal year.

SEC. 434. PAYMENTS TO STATES.

  (a) Entitlement.--Each State that has a plan approved under 
section 432 shall, subject to subsection (d), be entitled to 
payment of [the lesser of--
          [(1) 75 percent of the total expenditures by the 
        State for activities under the plan during the fiscal 
        year or the immediately succeeding fiscal year; or
          [(2) the allotment of the State under section 433 for 
        the fiscal year.] the sum of--
          (1) the lesser of--
                  (A) 75 percent of the total expenditures by 
                the State for activities under the plan during 
                the fiscal year or the immediately succeeding 
                fiscal year; or
                  (B) the allotment of the State under 
                subsection (a), (b), or (c) of section 433, 
                whichever is applicable, for the fiscal year; 
                and
          (2) the lesser of--
                  (A) 75 percent of the total expenditures by 
                the State in accordance with section 
                436(b)(4)(B) during the fiscal year or the 
                immediately succeeding fiscal year; or
                  (B) the allotment of the State under section 
                433(e) for the fiscal year.

           *       *       *       *       *       *       *

  (d) Limitation on Reimbursement for Administrative Costs.--
The Secretary shall not make a payment to a State under this 
section with respect to expenditures for administrative costs 
during a fiscal year, to the extent that the total amount of 
the expenditures exceeds 10 percent of the total expenditures 
of the State during the fiscal year under the State plan 
approved under section 432.

SEC. 435. EVALUATIONS; RESEARCH; TECHNICAL ASSISTANCE.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Reports.--
          (1) Content.--The Secretary shall submit to the 
        Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the 
        Senate biennial reports on--
                  (A) the level of expenditures, and the 
                programs and activities funded, under subpart 1 
                and this subpart by each State, territory, and 
                Indian tribe to which funds are paid under this 
                part;
                  (B) the number of children and families 
                served by each such State, territory, and 
                Indian tribe under the programs; and
                  (C) how spending under the programs has 
                helped achieve the goals identified by each 
                such State, territory, and Indian tribe as part 
                of the annual planning process undertaken in 
                developing plans pursuant to this part.
          (2) Timing.--The Secretary shall submit the biennial 
        reports required by paragraph (1) not later than July 
        1, 2008, and not later than July 1 of every other 
        calendar year thereafter.

SEC. 436. AUTHORIZATION OF APPROPRIATIONS; RESERVATION OF CERTAIN 
                    AMOUNTS.

  (a) Authorization.--In addition to any amount otherwise made 
available to carry out this subpart, there are authorized to be 
appropriated to carry out this subpart $345,000,000 [for fiscal 
year 2006. Notwithstanding the preceding sentence, the total 
amount authorized to be so appropriated for fiscal year 2006 
under this subsection and under this subsection (as in effect 
before the date of the enactment of the Deficit Reduction Act 
of 2005) is $345,000,000.] for each of fiscal years 2007 
through 2011.
  (b) Reservation of Certain Amounts.--From the amount 
specified in subsection (a) for a fiscal year, the Secretary 
shall reserve amounts as follows:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Indian tribes.--[The] After applying paragraph 
        (4) (but before applying paragraphs (1) or (2)), the 
        Secretary shall reserve [1] 3 percent for allotment to 
        Indian tribes in accordance with section 433(a).
          (4) Support for monthly caseworker visits.--
                  (A) Reservation.--In the case of each of 
                fiscal years 2006 through 2011, the Secretary 
                shall reserve $40,000,000 for allotment in 
                accordance with section 433(e).
                  (B) Use of funds.--
                          (i) In general.--A State to which an 
                        amount is paid from amounts reserved 
                        under subparagraph (A) shall use the 
                        amount to support monthly caseworker 
                        visits with children who are in foster 
                        care under the responsibility of the 
                        State, with a primary emphasis on 
                        activities designed to improve 
                        caseworker retention, recruitment, 
                        training, and ability to access the 
                        benefits of technology.
                          (ii) Nonsupplantation.--A State to 
                        which an amount is paid from amounts 
                        reserved pursuant to subparagraph (A) 
                        shall not use the amount to supplant 
                        any Federal funds paid to the State 
                        under part E that could be used as 
                        described in clause (i).

SEC. 437. DISCRETIONARY GRANTS.

  (a) Limitations on Authorization of Appropriations.--In 
addition to any amount appropriated pursuant to section 436, 
there are authorized to be appropriated to carry out this 
section $200,000,000 for each of fiscal years [2002 through 
2006] 2007 through 2011.
  (b) Reservation of Certain Amounts.--From the amount (if any) 
appropriated pursuant to subsection (a) for a fiscal year, the 
Secretary shall reserve amounts as follows:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Indian tribes.--The Secretary shall reserve [2] 3 
        percent for allotment to Indian tribes in accordance 
        with subsection (c)(1).
  (c) Allotments.--
          (1) * * *
          (2) Territories.--From the amount (if any) 
        appropriated pursuant to subsection (a) for any fiscal 
        year that remains after applying subection (b) for the 
        fiscal year, the Secretary shall allot to each of the 
        jurisdictions of Puerto Rico, Guam, the Virgin Islands, 
        the Northern Mariana Islands, and American Samoa an 
        amount determined in the same manner as the allotment 
        to each of such jurisdictions is determined under 
        section [421] 423.

           *       *       *       *       *       *       *

SEC. 438. ENTITLEMENT FUNDING FOR STATE COURTS TO ASSESS AND IMPROVE 
                    HANDLING OF PROCEEDINGS RELATING TO FOSTER CARE AND 
                    ADOPTION.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Allotments.--
          (1) Grants to assess and improve handling of court 
        proceedings relating to foster care and adoption.--
                  (A) In general.--Each highest State court 
                which has an application approved under 
                subsection (b) of this section for a grant 
                described in subsection (b)(2)(A) of this 
                section, and is conducting assessment and 
                improvement activities in accordance with this 
                section, shall be entitled to payment, for each 
                of fiscal years 2002 through [2006] 2011, from 
                the amount reserved pursuant to section 
                436(b)(2) (and the amount, if any, reserved 
                pursuant to section 437(b)(2)), of an amount 
                equal to the sum of $85,000 plus the amount 
                described in subparagraph (B) of this paragraph 
                for the fiscal year.

           *       *       *       *       *       *       *

  (d) Federal Share.--Each highest State court which receives 
funds paid under this section may use such funds to pay not 
more than 75 percent of the cost of activities under this 
section in each of fiscal years 2002 through [2006] 2011.

           *       *       *       *       *       *       *

SEC. 439. GRANTS FOR PROGRAMS FOR MENTORING CHILDREN OF PRISONERS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Program Authorized.--From the amounts appropriated under 
subsection (h) for a fiscal year that remain after applying 
subsection (h)(2), the Secretary shall make grants under this 
section for each of fiscal years [2002 through 2006] 2007 
through 2011 to State or local governments, tribal governments 
or tribal consortia, faith-based organizations, and community-
based organizations in areas that have significant numbers of 
children of prisoners and that submit applications meeting the 
requirements of this section, in amounts that do not exceed 
$5,000,000 per grant.

           *       *       *       *       *       *       *

  (h) Authorization of Appropriations; Reservation of Certain 
Amounts.--
          [(1) Authorization.--There are authorized to be 
        appropriated to carry out this section $67,000,000 for 
        each of fiscal years 2002 and 2003, and such sums as 
        may be necessary for each succeeding fiscal year.]
          (1) Limitations on authorization of appropriations; 
        reservation of certain amounts.--To carry out this 
        section, there are authorized to be appropriated to the 
        Secretary such sums as may be necessary for fiscal 
        years 2007 through 2011.

           *       *       *       *       *       *       *

                                  
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