59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–616 

SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RESULTS 

ACT 

JUNE 10, 2016.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. BRADY of Texas, from the Committee on Ways and Means, 

submitted the following 

R E P O R T 

together with 

ADDITIONAL AND DISSENTING VIEWS 

[To accompany H.R. 5170] 

[Including cost estimate of the Congressional Budget Office] 

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

bill (H.R. 5170) to encourage and support partnerships between the 

public and private sectors to improve our Nation’s social programs, 

and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the bill as 

amended do pass. 

CONTENTS 

Page 

I. SUMMARY AND BACKGROUND ............................................................... 11 

A. Purpose and Summary ..................................................................... 11 

B. Background and Need for Legislation ............................................. 11 

C. Legislative History ............................................................................ 12 

II. EXPLANATION OF THE BILL ................................................................... 12 

Section 1: Short Title ............................................................................. 12 

Section 2: Social Impact Partnerships to Pay For Results ................. 13 

III. VOTES OF THE COMMITTEE .................................................................... 19 

IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES ..................... 20 

V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET 

OFFICE ....................................................................................................... 20 

VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

THE HOUSE .............................................................................................. 22 

A. Committee Oversight Findings and Recommendations ................. 22 

B. Statement of General Performance Goals and Objectives ............. 22 

C. Applicability of House Rule XXI 5(b) .............................................. 22 


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D. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 23 

E. Duplication of Federal Programs ..................................................... 23 

F. Disclosure of Directed Rule Makings .............................................. 23 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 23 

A. Text of Existing Law Amended or Repealed by the Bill, as 

Reported .......................................................................................... 23 

B. Changes in Existing Law Proposed by the Bill, as Reported ........ 47 

VIII. ADDITIONAL AND DISSENTING VIEWS ................................................ 85 

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 ‘‘Social Impact Partnerships to Pay for Results Act’’. 

SEC. 2. SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RESULTS. 

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

the end the following: 

‘‘(c) SOCIAL IMPACT DEMONSTRATION PROJECTS.— 

‘‘(1) PURPOSES.—The purposes of this subsection are the following: 

‘‘(A) To improve the lives of families and individuals in need in the 

United States by funding social programs that achieve real results. 

‘‘(B) To redirect funds away from programs that, based on objective data, 

are ineffective, and into programs that achieve demonstrable, measurable 

results. 

‘‘(C) To ensure Federal funds are used effectively on social services to 

produce positive outcomes for both service recipients and taxpayers. 

‘‘(D) To establish the use of social impact partnerships to address some 

of our Nation’s most pressing problems. 

‘‘(E) To facilitate the creation of public-private partnerships that bundle 

philanthropic or other private resources with existing public spending to 

scale up effective social interventions already being implemented by private 

organizations, non-profits, charitable organizations, and State and local 

governments across the country. 

‘‘(F) To bring pay-for-performance to the social sector, allowing the United 

States to improve the impact and effectiveness of vital social services programs while redirecting inefficient or duplicative spending. 

‘‘(G) To incorporate outcomes measurement and randomized controlled 

trials or other rigorous methodologies for assessing program impact. 

‘‘(2) SOCIAL IMPACT PARTNERSHIP APPLICATION.— 

‘‘(A) NOTICE.—Not later than 1 year after the date of the enactment of 

this subsection, the Secretary of the Treasury, in consultation with the Federal Interagency Council on Social Impact Partnerships, shall publish in the 

Federal Register a request for proposals from States or local government for 

social impact partnership projects in accordance with this paragraph. 

‘‘(B) REQUIRED OUTCOMES FOR SOCIAL IMPACT PARTNERSHIP PROJECT.—To 

qualify as a social impact partnership project under this subsection, a 

project must produce 1 or more measurable, clearly defined outcomes that 

result in social benefit and Federal savings through any of the following: 

‘‘(i) Increasing work and earnings by individuals who have been unemployed in the United States for more than 6 consecutive months. 

‘‘(ii) Increasing employment and earnings of individuals who have attained 16 years of age but not 25 years of age. 

‘‘(iii) Increasing employment among individuals receiving Federal disability benefits. 

‘‘(iv) Reducing the dependence of low-income families on Federal 

means-tested benefits. 

‘‘(v) Improving rates of high school graduation. 

‘‘(vi) Reducing teen and unplanned pregnancies. 

‘‘(vii) Improving birth outcomes and early childhood health and development among low-income families and individuals. 

‘‘(viii) Reducing rates of asthma, diabetes, or other preventable diseases among low-income families and individuals to reduce the utilization of emergency and other high-cost care. 

‘‘(ix) Increasing the proportion of children living in 2-parent families. 

‘‘(x) Reducing incidences and adverse consequences of child abuse and 

neglect. 


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‘‘(xi) Reducing the number of youth in foster care by increasing adoptions, permanent guardianship arrangements, reunification, or placement with a fit and willing relative, or by avoiding placing children in 

foster care by ensuring they can be cared for safely in their own homes. 

‘‘(xii) Reducing the number of children and youth in foster care residing in group homes, child care institutions, agency-operated foster 

homes, or other non-family foster homes, unless it is determined that 

it is in the interest of the child’s long-term health, safety, or psychological well-being to not be placed in a family foster home. 

‘‘(xiii) Reducing the number of children returning to foster care. 

‘‘(xiv) Reducing recidivism among juveniles, individuals released from 

prison, or other high-risk populations. 

‘‘(xv) Reducing the rate of homelessness among our most vulnerable 

populations. 

‘‘(xvi) Improving the health and well-being of those with mental, emotional, and behavioral health needs. 

‘‘(xvii) Improving the educational outcomes of special-needs or low-income children. 

‘‘(xviii) Improving the employment and well-being of returning United 

States military members. 

‘‘(xix) Increasing the financial stability of low-income families. 

‘‘(xx) Increasing the independence and employability of individuals 

who are physically or mentally disabled. 

‘‘(xxi) Other measurable outcomes defined by the State or local government that result in positive social outcomes and Federal savings. 

‘‘(C) APPLICATION REQUIRED.—The notice described in subparagraph (A) 

shall require a State or local government to submit an application for the 

social impact partnership project that addresses the following: 

‘‘(i) The outcome goals of the project. 

‘‘(ii) A description of each intervention in the project and anticipated 

outcomes of the intervention. 

‘‘(iii) Rigorous evidence demonstrating that the intervention can be 

expected to produce the desired outcomes. 

‘‘(iv) The target population that will be served by the project. 

‘‘(v) The expected social benefits to participants who receive the intervention and others who may be impacted. 

‘‘(vi) Projected Federal, State, and local government costs and other 

costs to conduct the project. 

‘‘(vii) Projected Federal, State, and local government savings and 

other savings, including an estimate of the savings to the Federal Government, on a program-by-program basis and in the aggregate, if the 

project is implemented and the outcomes are achieved. 

‘‘(viii) If savings resulting from the successful completion of the 

project are estimated to accrue to the State or local government, the 

likelihood of the State or local government to realize those savings. 

‘‘(ix) A plan for delivering the intervention through a social impact 

partnership model. 

‘‘(x) A description of the expertise of each service provider that will 

administer the intervention, including a summary of the experience of 

the service provider in delivering the proposed intervention or a similar 

intervention, or demonstrating that the service provider has the expertise necessary to deliver the proposed intervention. 

‘‘(xi) An explanation of the experience of the State or local government, the intermediary, or the service provider in raising private and 

philanthropic capital to fund social service investments. 

‘‘(xii) The detailed roles and responsibilities of each entity involved 

in the project, including any State or local government entity, intermediary, service provider, independent evaluator, investor, or other 

stakeholder. 

‘‘(xiii) A summary of the experience of the service provider delivering 

the proposed intervention or a similar intervention, or a summary demonstrating the service provider has the expertise necessary to deliver 

the proposed intervention. 

‘‘(xiv) A summary of the unmet need in the area where the intervention will be delivered or among the target population who will receive 

the intervention. 

‘‘(xv) The proposed payment terms, the methodology used to calculate 

outcome payments, the payment schedule, and performance thresholds. 

‘‘(xvi) The project budget. 


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‘‘(xvii) The project timeline. 

‘‘(xviii) The criteria used to determine the eligibility of an individual 

for the project, including how selected populations will be identified, 

how they will be referred to the project, and how they will be enrolled 

in the project. 

‘‘(xix) The evaluation design. 

‘‘(xx) The metrics that will be used to determine whether the outcomes have been achieved and how the metrics will be measured. 

‘‘(xxi) An explanation of how the metrics used to determine whether 

the outcomes have been achieved are independent, objective indicators 

of impact and are not subject to manipulation by the service provider, 

intermediary, or investor. 

‘‘(xxii) A summary explaining the independence of the evaluator from 

the other entities involved in the project and the evaluator’s experience 

in conducting rigorous evaluations of program effectiveness including, 

where available, well-implemented randomized controlled trials on the 

intervention or similar interventions. 

‘‘(xxiii) The capacity of the service provider to deliver the intervention 

to the number of participants the State or local government proposes 

to serve in the project. 

‘‘(D) PROJECT INTERMEDIARY INFORMATION REQUIRED.—The application 

described in subparagraph (C) shall also contain the following information 

about any intermediary for the social impact partnership project (whether 

an intermediary is a service provider or other entity): 

‘‘(i) Experience and capacity for providing or facilitating the provision 

of the type of intervention proposed. 

‘‘(ii) The mission and goals. 

‘‘(iii) Information on whether the intermediary is already working 

with service providers that provide this intervention or an explanation 

of the capacity of the intermediary to begin working with service providers to provide the intervention. 

‘‘(iv) Experience working in a collaborative environment across government and nongovernmental entities. 

‘‘(v) Previous experience collaborating with public or private entities 

to implement evidence-based programs. 

‘‘(vi) Ability to raise or provide funding to cover operating costs (if applicable to the project). 

‘‘(vii) Capacity and infrastructure to track outcomes and measure results, including— 

‘‘(I) capacity to track and analyze program performance and assess program impact; and 

‘‘(II) experience with performance-based awards or performancebased contracting and achieving project milestones and targets. 

‘‘(viii) Role in delivering the intervention. 

‘‘(ix) How the intermediary would monitor program success, including 

a description of the interim benchmarks and outcome measures. 

‘‘(E) FEASIBILITY STUDIES FUNDED THROUGH OTHER SOURCES.—The notice 

described in subparagraph (A) shall permit a State or local government to 

submit an application for social impact partnership funding that contains 

information from a feasibility study developed for purposes other than applying for funding under this subsection. 

‘‘(3) AWARDING SOCIAL IMPACT PARTNERSHIP AGREEMENTS.— 

‘‘(A) TIMELINE IN AWARDING AGREEMENT.—Not later than 6 months after 

receiving an application in accordance with paragraph (2), the Secretary, in 

consultation with the Federal Interagency Council on Social Impact Partnerships, shall determine whether to enter into an agreement for a social 

impact partnership project with a State or local government. 

‘‘(B) CONSIDERATIONS IN AWARDING AGREEMENT.—In determining whether 

to enter into an agreement for a social impact partnership project (the application for which was submitted under paragraph (2)) the Secretary, in 

consultation with the Federal Interagency Council on Social Impact Partnerships (established by paragraph (6)) and the head of any Federal agency 

administering a similar intervention or serving a population similar to that 

served by the project, shall consider each of the following: 

‘‘(i) The recommendations made by the Commission on Social Impact 

Partnerships. 

‘‘(ii) The value to the Federal Government of the outcomes expected 

to be achieved if the outcomes specified in the agreement are achieved. 


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‘‘(iii) The likelihood, based on evidence provided in the application 

and other evidence, that the State or local government in collaboration 

with the intermediary and the service providers will achieve the outcomes. ‘‘(iv) The savings to the Federal Government if the outcomes specified 

in the agreement are achieved. 

‘‘(v) The savings to the State and local governments if the outcomes 

specified in the agreement are achieved. 

‘‘(vi) The expected quality of the evaluation that would be conducted 

with respect to the agreement. 

‘‘(C) AGREEMENT AUTHORITY.— ‘‘(i) AGREEMENT REQUIREMENTS.—In accordance with this paragraph, 

the Secretary, in consultation with the Federal Interagency Council on 

Social Impact Partnerships and the head of any Federal agency administering a similar intervention or serving a population similar to that 

served by the project, may enter into an agreement for a social impact 

partnership project with a State or local government if the Secretary, 

in consultation with the Federal Interagency Council on Social Impact 

Partnerships, determines that each of the following requirements are 

met: 

‘‘(I) The State or local government agrees to achieve 1 or more 

outcomes specified in the agreement in order to receive payment. 

‘‘(II) The Federal payment to the State or local government for 

each outcome specified is less than or equal to the value of the outcome to the Federal Government over a period not to exceed 10 

years, as determined by the Secretary, in consultation with the 

State or local government. 

‘‘(III) The duration of the project does not exceed 10 years. 

‘‘(IV) The State or local government has demonstrated, through 

the application submitted under paragraph (2), that, based on prior 

rigorous experimental evaluations or rigorous quasi-experimental 

studies, the intervention can be expected to achieve each outcome 

specified in the agreement. 

‘‘(V) The State, local government, intermediary, or service provider has experience raising private or philanthropic capital to 

fund social service investments (if applicable to the project). 

‘‘(VI) The State or local government has shown that each service 

provider has experience delivering the intervention, a similar intervention, or has otherwise demonstrated the expertise necessary to 

deliver the intervention. 

‘‘(ii) PAYMENT.—The Secretary shall pay the State or local government only if the independent evaluator described in paragraph (5) determines that the social impact partnership project has met the requirements specified in the agreement and achieved an outcome specified in the agreement. 

‘‘(D) NOTICE OF AGREEMENT AWARD.—Not later than 30 days after entering into an agreement under this paragraph, the Secretary shall publish a 

notice in the Federal Register that includes, with regard to the agreement, 

the following: 

‘‘(i) The outcome goals of the social impact partnership project. 

‘‘(ii) A description of each intervention in the project. 

‘‘(iii) The target population that will be served by the project. 

‘‘(iv) The expected social benefits to participants who receive the 

intervention and others who may be impacted. 

‘‘(v) The detailed roles, responsibilities, and purposes of each Federal, 

State, or local government entity, intermediary, service provider, independent evaluator, investor, or other stakeholder. 

‘‘(vi) The payment terms, the methodology used to calculate outcome 

payments, the payment schedule, and performance thresholds. 

‘‘(vii) The project budget. 

‘‘(viii) The project timeline. 

‘‘(ix) The project eligibility criteria. 

‘‘(x) The evaluation design. 

‘‘(xi) The metrics that will be used to determine whether the outcomes have been achieved and how these metrics will be measured. 

‘‘(xii) The estimate of the savings to the Federal, State, and local government, on a program-by-program basis and in the aggregate, if the 

agreement is entered into and implemented and the outcomes are 

achieved. 


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‘‘(E) AUTHORITY TO TRANSFER ADMINISTRATION OF AGREEMENT.—The Secretary may transfer to the head of another Federal agency the authority to 

administer (including making payments under) an agreement entered into 

under subparagraph (C), and any funds necessary to do so. 

‘‘(4) FEASIBILITY STUDY FUNDING.— 

‘‘(A) REQUESTS FOR FUNDING FOR FEASIBILITY STUDIES.—The Secretary 

shall reserve a portion of the amount reserved to carry out this subsection 

to assist States or local governments in developing feasibility studies to 

apply for social impact partnership funding under paragraph (2). To be eligible to receive funding to assist with completing a feasibility study, a State 

or local government shall submit an application for feasibility study funding 

addressing the following: 

‘‘(i) A description of the outcome goals of the social impact partnership project. 

‘‘(ii) A description of the intervention, including anticipated program 

design, target population, an estimate regarding the number of individuals to be served, and setting for the intervention. 

‘‘(iii) Evidence to support the likelihood that the intervention will 

produce the desired outcomes. 

‘‘(iv) A description of the potential metrics to be used. 

‘‘(v) The expected social benefits to participants who receive the intervention and others who may be impacted. 

‘‘(vi) Estimated costs to conduct the project. 

‘‘(vii) Estimates of Federal, State, and local government savings and 

other savings if the project is implemented and the outcomes are 

achieved. 

‘‘(viii) An estimated timeline for implementation and completion of 

the project, which shall not exceed 10 years. 

‘‘(ix) With respect to a project for which the State or local government 

selects an intermediary to operate the project, any partnerships needed 

to successfully execute the project and the ability of the intermediary 

to foster the partnerships. 

‘‘(x) The expected resources needed to complete the feasibility study 

for the State or local government to apply for social impact partnership 

funding under paragraph (2). 

‘‘(B) FEDERAL SELECTION OF APPLICATIONS FOR FEASIBILITY STUDY.—Not 

later than 6 months after receiving an application for feasibility study funding under subparagraph (A), the Secretary, in consultation with the Federal 

Interagency Council on Social Impact Partnerships and the head of any 

Federal agency administering a similar intervention or serving a population 

similar to that served by the project, shall select State or local government 

feasibility study proposals for funding based on the following: 

‘‘(i) The recommendations made by the Commission on Social Impact 

Partnerships. 

‘‘(ii) The likelihood that the proposal will achieve the desired outcomes. 

‘‘(iii) The value of the outcomes expected to be achieved. 

‘‘(iv) The potential savings to the Federal Government if the social 

impact partnership project is successful. 

‘‘(v) The potential savings to the State and local governments if the 

project is successful. 

‘‘(C) PUBLIC DISCLOSURE.—Not later than 30 days after selecting a State 

or local government for feasibility study funding under this paragraph, the 

Secretary shall cause to be published on the website of the Federal Interagency Council on Social Impact Partnerships information explaining why 

a State or local government was granted feasibility study funding. 

‘‘(D) FUNDING RESTRICTION.— 

‘‘(i) FEASIBILITY STUDY RESTRICTION.—The Secretary may not provide 

feasibility study funding under this paragraph for more than 50 percent of the estimated total cost of the feasibility study reported in the 

State or local government application submitted under subparagraph 

(A). 

‘‘(ii) AGGREGATE RESTRICTION.—Of the total amount reserved to carry 

out this subsection, the Secretary may not use more than $10,000,000 

to provide feasibility study funding to States or local governments 

under this paragraph. 

‘‘(iii) NO GUARANTEE OF FUNDING.—The Secretary shall have the option to award no funding under this paragraph. 


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‘‘(E) SUBMISSION OF FEASIBILITY STUDY REQUIRED.—Not later than 9 

months after the receipt of feasibility study funding under this paragraph, 

a State or local government receiving the funding shall complete the feasibility study and submit the study to the Federal Interagency Council on Social Impact Partnerships. 

‘‘(F) DELEGATION OF AUTHORITY.—The Secretary may transfer to the head 

of another Federal agency the authorities provided in this paragraph and 

any funds necessary to exercise the authorities. 

‘‘(5) EVALUATIONS.— 

‘‘(A) AUTHORITY TO ENTER INTO AGREEMENTS.—For each State or local 

government awarded a social impact partnership project approved by the 

Secretary under this subsection, the head of the relevant agency, as determined by the Federal Interagency Council on Social Impact Partnerships, 

shall enter into an agreement with the State or local government to pay for 

all or part of the independent evaluation to determine whether the State 

or local government project has met an outcome specified in the agreement 

in order for the State or local government to receive outcome payments 

under this subsection. 

‘‘(B) EVALUATOR QUALIFICATIONS.—The head of the relevant agency may 

not enter into an agreement with a State or local government unless the 

head determines that the evaluator is independent of the other parties to 

the agreement and has demonstrated substantial experience in conducting 

rigorous evaluations of program effectiveness including, where available 

and appropriate, well-implemented randomized controlled trials on the 

intervention or similar interventions. 

‘‘(C) METHODOLOGIES TO BE USED.—The evaluation used to determine 

whether a State or local government will receive outcome payments under 

this subsection shall use experimental designs using random assignment or 

other reliable, evidence-based research methodologies, as certified by the 

Federal Interagency Council on Social Impact Partnerships, that allow for 

the strongest possible causal inferences when random assignment is not 

feasible. 

‘‘(D) PROGRESS REPORT.— 

‘‘(i) SUBMISSION OF REPORT.—The independent evaluator shall— 

‘‘(I) not later than 2 years after a project has been approved by 

the Secretary and biannually thereafter until the project is concluded, submit to the head of the relevant agency and the Federal 

Interagency Council on Social Impact Partnerships a written report 

summarizing the progress that has been made in achieving each 

outcome specified in the agreement; and 

‘‘(II) before the scheduled time of the first outcome payment and 

before the scheduled time of each subsequent payment, submit to 

the head of the relevant agency and the Federal Interagency Council on Social Impact Partnerships a written report that includes the 

results of the evaluation conducted to determine whether an outcome payment should be made along with information on the 

unique factors that contributed to achieving or failing to achieve 

the outcome, the challenges faced in attempting to achieve the outcome, and information on the improved future delivery of this or 

similar interventions. 

‘‘(ii) SUBMISSION TO CONGRESS.—Not later than 30 days after receipt 

of the written report pursuant to clause (i)(II), the Federal Interagency 

Council on Social Impact Partnerships shall submit the report to each 

committee of jurisdiction in the House of Representatives and the Senate. 

‘‘(E) FINAL REPORT.— 

‘‘(i) SUBMISSION OF REPORT.—Within 6 months after the social impact 

partnership project is completed, the independent evaluator shall— 

‘‘(I) evaluate the effects of the activities undertaken pursuant to 

the agreement with regard to each outcome specified in the agreement; and 

‘‘(II) submit to the head of the relevant agency and the Federal 

Interagency Council on Social Impact Partnerships a written report 

that includes the results of the evaluation and the conclusion of the 

evaluator as to whether the State or local government has fulfilled 

each obligation of the agreement, along with information on the 

unique factors that contributed to the success or failure of the 

project, the challenges faced in attempting to achieve the outcome, 


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and information on the improved future delivery of this or similar 

interventions. 

‘‘(ii) SUBMISSION TO CONGRESS.—Not later than 30 days after receipt 

of the written report pursuant to clause (i)(II), the Federal Interagency 

Council on Social Impact Partnerships shall submit the report to each 

committee of jurisdiction in the House of Representatives and the Senate. 

‘‘(F) LIMITATION ON COST OF EVALUATIONS.—Of the amount reserved 

under this subsection for social impact partnership projects, the Secretary 

may not obligate more than 15 percent to evaluate the implementation and 

outcomes of the projects. 

‘‘(G) DELEGATION OF AUTHORITY.—The Secretary may transfer to the head 

of another Federal agency the authorities provided in this paragraph and 

any funds necessary to exercise the authorities. 

‘‘(6) FEDERAL INTERAGENCY COUNCIL ON SOCIAL IMPACT PARTNERSHIPS.— ‘‘(A) ESTABLISHMENT.—There is established the Federal Interagency 

Council on Social Impact Partnerships (in this paragraph referred to as the 

‘Council’) to— 

‘‘(i) coordinate the efforts of social impact partnership projects funded 

under this subsection; 

‘‘(ii) advise and assist the Secretary in the development and implementation of the projects; 

‘‘(iii) advise the Secretary on specific programmatic and policy matter 

related to the projects; 

‘‘(iv) provide subject-matter expertise to the Secretary with regard to 

the projects; 

‘‘(v) ensure that each State or local government that has entered into 

an agreement with the Secretary for a social impact partnership project 

under this subsection and each evaluator selected by the head of the 

relevant agency under paragraph (5) has access to Federal administrative data to assist the State or local government and the evaluator in 

evaluating the performance and outcomes of the project; 

‘‘(vi) address issues that will influence the future of social impact 

partnership projects in the United States; 

‘‘(vii) provide guidance to the executive branch on the future of social 

impact partnership projects in the United States; 

‘‘(viii) review State and local government applications for social impact partnerships to ensure that agreements will only be awarded 

under this subsection when rigorous, independent data and reliable, 

evidence-based research methodologies support the conclusion that an 

agreement will yield savings to the Federal Government if the project 

outcomes are achieved before the applications are approved by the Secretary; 

‘‘(ix) certify, in the case of each approved social impact partnership, 

that the project will yield a projected savings to the Federal Government if the project outcomes are achieved, and coordinate with the relevant Federal agency to produce an after-action accounting once the 

project is complete to determine the actual Federal savings realized, 

and the extent to which actual savings aligned with projected savings; 

and 

‘‘(x) provide oversight of the actions of the Secretary and other Federal officials under this subsection and report periodically to Congress 

and the public on the implementation of this subsection. 

‘‘(B) COMPOSITION OF COUNCIL.—The Council shall have 11 members, as 

follows: 

‘‘(i) CHAIR.—The Chair of the Council shall be the Director of the Office of Management and Budget. 

‘‘(ii) OTHER MEMBERS.—The head of each of the following entities 

shall designate 1 officer or employee of the entity to be a Council member: 

‘‘(I) The Department of Labor. 

‘‘(II) The Department of Health and Human Services. 

‘‘(III) The Social Security Administration. 

‘‘(IV) The Department of Agriculture. 

‘‘(V) The Department of Justice. 

‘‘(VI) The Department of Housing and Urban Development. 

‘‘(VII) The Department of Education. 

‘‘(VIII) The Department of Veterans Affairs. 

‘‘(IX) The Department of the Treasury. 


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‘‘(X) The Corporation for National and Community Service. 

‘‘(7) COMMISSION ON SOCIAL IMPACT PARTNERSHIPS.— 

‘‘(A) ESTABLISHMENT.—There is established the Commission on Social Impact Partnerships (in this paragraph referred to as the ‘Commission’). 

‘‘(B) DUTIES.—The duties of the Commission shall be to— 

‘‘(i) assist the Secretary and the Federal Interagency Council on Social Impact Partnerships in reviewing applications for funding under 

this subsection; 

‘‘(ii) make recommendations to the Secretary and the Federal Interagency Council on Social Impact Partnerships regarding the funding of 

social impact partnership agreements and feasibility studies; and 

‘‘(iii) provide other assistance and information as requested by the 

Secretary or the Federal Interagency Council on Social Impact Partnerships. 

‘‘(C) COMPOSITION.—The Commission shall be composed of 9 members, of 

whom— 

‘‘(i) 1 shall be appointed by the President, who will serve as the Chair 

of the Commission; 

‘‘(ii) 1 shall be appointed by the Majority Leader of the Senate; 

‘‘(iii) 1 shall be appointed by the Minority Leader of the Senate; 

‘‘(iv) 1 shall be appointed by the Speaker of the House of Representatives; 

‘‘(v) 1 shall be appointed by the Minority Leader of the House of Representatives; 

‘‘(vi) 1 shall be appointed by the Chairman of the Committee on Finance of the Senate; 

‘‘(vii) 1 shall be appointed by the ranking member of the Committee 

on Finance of the Senate; 

‘‘(viii) 1 member shall be appointed by the Chairman of the Committee on Ways and Means of the House of Representatives; and 

‘‘(ix) 1 shall be appointed by the ranking member of the Committee 

on Ways and Means of the House of Representatives. 

‘‘(D) QUALIFICATIONS OF COMMISSION MEMBERS.—The members of the 

Commission shall— 

‘‘(i) be experienced in finance, economics, pay for performance, or program evaluation; 

‘‘(ii) have relevant professional or personal experience in a field related to 1 or more of the outcomes listed in this subsection; or 

‘‘(iii) be qualified to review applications for social impact partnership 

projects to determine whether the proposed metrics and evaluation 

methodologies are appropriately rigorous and reliant upon independent 

data and evidence-based research. 

‘‘(E) TIMING OF APPOINTMENTS.—The appointments of the members of the 

Commission shall be made not later than 120 days after the date of the enactment of this subsection, or, in the event of a vacancy, not later than 90 

days after the date the vacancy arises. If a member of Congress fails to appoint a member by that date, the President may select a member of the 

President’s choice on behalf of the member of Congress. Notwithstanding 

the preceding sentence, if not all appointments have been made to the Commission as of that date, the Commission may operate with no fewer than 

5 members until all appointments have been made. 

‘‘(F) TERM OF APPOINTMENTS.— 

‘‘(i) IN GENERAL.—The members appointed under subparagraph (C) 

shall serve as follows: 

‘‘(I) 3 members shall serve for 2 years. 

‘‘(II) 3 members shall serve for 3 years. 

‘‘(III) 3 members (1 of which shall be Chair of the Commission 

appointed by the President) shall serve for 4 years. 

‘‘(ii) ASSIGNMENT OF TERMS.—The Commission shall designate the 

term length that each member appointed under subparagraph (C) shall 

serve by unanimous agreement. In the event that unanimous agreement cannot be reached, term lengths shall be assigned to the members 

by a random process. 

‘‘(G) VACANCIES.—Subject to subparagraph (E), in the event of a vacancy 

in the Commission, whether due to the resignation of a member, the expiration of a member’s term, or any other reason, the vacancy shall be filled 

in the manner in which the original appointment was made and shall not 

affect the powers of the Commission. 


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‘‘(H) APPOINTMENT POWER.—Members of the Commission appointed under 

subparagraph (C) shall not be subject to confirmation by the Senate. 

‘‘(8) LIMITATION ON USE OF FUNDS.—Of the amounts reserved to carry out this subsection, the Secretary may not use more than $2,000,000 in any fiscal year 

to support the review, approval, and oversight of social impact partnership 

projects, including activities conducted by— 

‘‘(A) the Federal Interagency Council on Social Impact Partnerships; and 

‘‘(B) any other agency consulted by the Secretary before approving a social impact partnership project or a feasibility study under paragraph (4). 

‘‘(9) NO FEDERAL FUNDING FOR CREDIT ENHANCEMENTS.—No amount reserved 

to carry out this subsection may be used to provide any insurance, guarantee, 

or other credit enhancement to a State or local government under which a Federal payment would be made to a State or local government as the result of a 

State or local government failing to achieve an outcome specified in a contract. 

‘‘(10) AVAILABILITY OF FUNDS.—Amounts reserved to carry out this subsection 

shall remain available until 10 years after the date of the enactment of this 

subsection. 

‘‘(11) WEBSITE.—The Federal Interagency Council on Social Impact Partnerships shall establish and maintain a public website that shall display the following: 

‘‘(A) A copy of, or method of accessing, each notice published regarding 

a social impact partnership project pursuant to this subsection. 

‘‘(B) A copy of each feasibility study funded under this subsection. 

‘‘(C) For each State or local government that has entered into an agreement with the Secretary for a social impact partnership project, the website 

shall contain the following information: 

‘‘(i) The outcome goals of the project. 

‘‘(ii) A description of each intervention in the project. 

‘‘(iii) The target population that will be served by the project. 

‘‘(iv) The expected social benefits to participants who receive the 

intervention and others who may be impacted. 

‘‘(v) The detailed roles, responsibilities, and purposes of each Federal, 

State, or local government entity, intermediary, service provider, independent evaluator, investor, or other stakeholder. 

‘‘(vi) The payment terms, methodology used to calculate outcome payments, the payment schedule, and performance thresholds. 

‘‘(vii) The project budget. 

‘‘(viii) The project timeline. 

‘‘(ix) The project eligibility criteria. 

‘‘(x) The evaluation design. 

‘‘(xi) The metrics used to determine whether the proposed outcomes 

have been achieved and how these metrics are measured. 

‘‘(D) A copy of the progress reports and the final reports relating to each 

social impact partnership project. 

‘‘(E) An estimate of the savings to the Federal, State, and local government, on a program-by-program basis and in the aggregate, resulting from 

the successful completion of the social impact partnership project. 

‘‘(12) REGULATIONS.—The Secretary, in consultation with the Federal Interagency Council on Social Impact Partnerships, may issue regulations as necessary to carry out this subsection. 

‘‘(13) DEFINITIONS.—In this subsection: 

‘‘(A) AGENCY.—The term ‘agency’ has the meaning given that term in section 551 of title 5, United States Code. 

‘‘(B) INTERVENTION.—The term ‘intervention’ means a specific service delivered to achieve an impact through a social impact partnership project. 

‘‘(C) SECRETARY.—The term ‘Secretary’ means the Secretary of the Treasury. 

‘‘(D) SOCIAL IMPACT PARTNERSHIP PROJECT.—The term ‘social impact partnership project’ means a project that finances social services using a social 

impact partnership model. 

‘‘(E) SOCIAL IMPACT PARTNERSHIP MODEL.—The term ‘social impact partnership model’ means a method of financing social services in which— 

‘‘(i) Federal funds are awarded to a State or local government only 

if a State or local government achieves certain outcomes agreed on by 

the State or local government and the Secretary; and 

‘‘(ii) the State or local government coordinates with service providers, 

investors (if applicable to the project), and (if necessary) an intermediary to identify— 

‘‘(I) an intervention expected to produce the outcome; 


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1 John Bridgeland and Peter Orszag, Can Government Play Moneyball? How a new era of fiscal scarcity could make Washington work better. The Atlantic, July/August 2013 issue. Available 

online: http://www.theatlantic.com/magazine/archive/2013/07/can-government-playmoneyball/309389/. 

‘‘(II) a service provider to deliver the intervention to the target 

population; and 

‘‘(III) investors to fund the delivery of the intervention. 

‘‘(F) STATE.—The term ‘State’ means each State of the United States, the 

District of Columbia, each commonwealth, territory or possession of the 

United States, and each federally recognized Indian tribe. 

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

for fiscal year 2017, the Secretary shall reserve $100,000,000 to carry out this 

subsection.’’. 

I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

H.R. 5170 as amended, the ‘‘Social Impact Partnerships to Pay 

for Results Act,’’ as ordered by reported by the Committee on Ways 

and Means on May 11, 2016, reserves a portion of existing welfare 

funds to support innovative and effective social programs that deliver measurable results for people in need. 

B. BACKGROUND AND NEED FOR LEGISLATION

Each year, the federal government spends hundreds of billions of 

dollars on more than 80 programs designed to assist children and 

families with limited resources. While each program was created 

with a goal of making a real difference in the lives of those in need, 

few programs have been proven to produce better outcomes for the 

low-income families and individuals they serve. In many cases, 

these programs have never been evaluated to determine if they are 

working as intended. Most programs cannot demonstrate they 

achieve better outcomes for poor families. According to two former 

White House officials, one Democrat and one Republican, ‘‘based on 

our rough calculations, less than $1 out of every $100 of government spending is backed by even the most basic evidence that the 

money is being spent wisely.’’ 1 Instead, many decisions on program 

design and funding are made based on poor quality studies, anecdotes or testimonials, or well-meaning program operators who believe their program will be effective. Even when programs are evaluated, most don’t work. 

Low-income individuals and taxpayers alike deserve programs 

that are effective in helping people improve their lives and get 

ahead. Given the current fiscal climate, it is also critical that Congress ensure taxpayer dollars are spent on programs that work. Social Impact financing is one mechanism designed to improve the 

way taxpayer funds are spent on social services by ensuring money 

is only spent on programs that deliver results. At its core, this financing structure represents a way to fund effective social programs and ensure government only pays for success. Under this 

model, government identifies a desired social outcome and agrees 

to pay for that outcome. Next, investors agree to a contract to be 

paid for that outcome and identify and fund a service provider to 

achieve it. If the outcome is achieved, the government repays investors. If the outcome is not achieved, the government does not pay. 


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Social impact financing shifts the risk of achieving the outcome 

from government to the private sector, as taxpayer funds are only 

spent if desired outcomes are achieved. As a result, this funding 

structure helps drive innovation and competition in the social service sector, as funding will be available to reward those who demonstrate effectiveness. This financing structure also provides more 

flexibility to service providers to focus on achieving outcomes—instead of focusing on compliance with cumbersome federal rules. 

C. LEGISLATIVE HISTORY

Background 

H.R. 5170, the ‘‘Social Impact Partnerships to Pay for Results 

Act,’’ was introduced on May 6, 2016, by Representative Todd 

Young and Representative John Delaney, and was referred to the 

Committee on Ways and Means. 

The bill represents the result of over two years of legislative 

work to include feedback from a variety of stakeholders. A proposal 

was released for public comment on April 29, 2014, and many 

groups provided feedback on the initial draft. After incorporating 

this feedback into a new draft, the bill was introduced on June 18, 

2014, and Mr. Young and Mr. Delaney continued to solicit input in 

the months following the bill introduction. The sponsors continued 

to consider comments and suggestions through March 4, 2015, 

when the bill was reintroduced incorporating additional suggestions. The proposal was further refined when it was included as 

part of a Ways and Means discussion draft to reauthorize the Temporary Assistance for Needy Families (TANF) program on July 17, 

2015. The latest version, introduced May 6, 2016, includes further 

feedback, including input from every major stakeholder, including 

Republicans, Democrats, and the White House. 

Committee hearings 

The Ways and Means Human Resources Subcommittee held a 

hearing on the bill on September 9, 2014. This hearing highlighted 

how few federal social programs are evaluated to determine whether they are effective, and how some state and local governments 

are providing funding through ‘‘pay for results’’ or ‘‘social impact’’ 

contracts to only pay for social services that produce results. 

Committee action 

The Committee on Ways and Means marked up H.R. 5170, the 

‘‘Social Impact Partnerships to Pay for Results Act,’’ on May 11, 

2016. The bill, H.R. 5170, was ordered favorably reported to the 

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

quorum being present). 

II. EXPLANATION OF THE BILL 

SECTION 1: SHORT TITLE

Present law 

No provision. 


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Explanation of provision 

This section contains the short title of the bill, the ‘‘Social Impact 

Partnerships to Pay for Results Act.’’ 

Reason for change 

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

Effective date 

The provision is effective October 1, 2016. 

SECTION 2: SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RESULTS

Present law 

No provision. 

Explanation of provision 

The ‘‘Social Impact Partnerships to Pay for Results Act’’ would 

establish Social Impact Partnership demonstration projects. The 

bill would authorize the Secretary of the Treasury to enter into 

agreements with state or local governments to conduct projects 

where the federal government would make a payment to the state 

or local government if the project met the requirements of the 

agreement and achieved one or more of the outcomes specified in 

the contract (pay for performance) as determined by an independent evaluator. 

A Federal Interagency Council on Social Impact Partnerships 

would be established to: 

• Coordinate the efforts of projects funded under the demonstration; 

• Advise and assist the Secretary of the Treasury on the implementation and development of projects; 

• Advise the Secretary on specific programmatic and policy 

matters; 

• Provide subject matter expertise; 

• Ensure access to federal administrative data to evaluate 

the project; 

• Address issues that will influence, and provide guidance to 

the executive branch on, the future of social impact partnerships; 

• Review applications for social impact partnership projects; 

• Certify that each approved project will yield projected savings to the federal government; and 

• Provide oversight for projects in the demonstration. 

The council would be composed of 11 members. The bill would 

designate the Director of the Office of Management and Budget to 

be chair, and would require the remaining ten members to be designated by the following federal agencies, with each federal agency 

designating one officer or employee: the Department of Labor, Department of Health and Human Services, Social Security Administration, Department of Agriculture, Department of Justice, Department of Housing and Urban Development, Department of Education, Department of Veterans Affairs, Department of the Treasury, and the Corporation for National and Community Service. 


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The social impact demonstration has seven enumerated purposes: 

1. Improve the lives of families and individuals in need in 

the United States by funding social programs that achieve real 

results; 

2. Redirect funds away from programs that are ineffective 

and into programs that achieve demonstrable, measurable results; 

3. Ensure the federal funds are used effectively on social 

services to produce positive outcomes for both recipients and 

taxpayers; 

4. Establish the use of social impact partnerships to address 

some national problems; 

5. Facilitate the creation of public-private partnerships; 

6. Bring pay-for-performance to the social sector; and 

7. Incorporate outcome measurement and randomized control trials or other rigorous methods for assessing program impacts. 

The bill would require a social impact partnership project to 

produce one or more measurable outcomes that result in social benefit and federal savings through any of the following enumerated 

outcomes: 

1. Increasing work or earnings of those who have been unemployed for more than six consecutive months; 

2. Increasing employment and earnings of youth aged 16 

through 24; 

3. Increasing employment among individuals receiving federal disability benefits; 

4. Reducing dependence of low-income families on meanstested benefits; 

5. Improving high school graduation rates; 

6. Reducing teen and unplanned pregnancies; 

7. Improving birth outcomes and early childhood health and 

development for low-income families and individuals; 

8. Reducing rates of asthma, diabetes, or other preventable 

diseases among low-income families and reducing the use of 

emergency and high cost health care; 

9. Increasing the proportion of children living in two-parent 

families; 

10. Reducing the incidence and adverse consequences of 

child abuse and neglect; 

11. Reducing the number of youth in foster care; 

12. Reducing the number of youth in foster care living in 

non-family environments (e.g., group homes); 

13. Reducing the number of children returning to foster 

care; 

14. Reducing recidivism among juveniles, individuals released from prison, or other high risk populations; 

15. Reducing homelessness; 

16. Improving the health and well-being of those with mental, emotional, and behavioral health needs; 

17. Improving the educational outcomes of special-needs or 

low-income children; 

18. Improving the employment and well-being of returning 

U.S. military members; 


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19. Increasing the financial stability of low-income families; 

20. Increasing the independence and employability of those 

with physical or mental disabilities; and 

21. Other positive social outcomes and federal savings. 

Not later than one year after enactment, the Secretary of the 

Treasury, in consultation with the Federal Interagency Council on 

Social Impact Partnerships, would be required to publish in the 

Federal Register a notice that seeks proposals from state or local 

governments for social impact partnership projects. A state or local 

government would be required to submit an application for the social impact partnership project. 

The application would be required to, among other things, describe the intervention, unmet needs addressed by the intervention, 

target population, criteria for determining eligibility and enrollment in the project, and a plan for delivering the intervention. In 

the application, the state or local government would be required to 

address project outcome goals; demonstrate with certain types of 

evidence that the intervention can be expected to produce the desired outcome; include projections of federal, state, and local government costs of the project; and include projections of federal, 

state, and local government savings from a successful implementation of the project. The application would be required to also include a description of the experience of the state and local government in raising private and philanthropic capital to fund social 

services; the experience of the service provider in delivering the 

proposed intervention; certain information about the intermediary 

for the social impact partnership project, including the 

intermediary’s experience and capacity, mission and goals, and 

other categories of information. The application would also be required to address the project’s evaluation, metrics used in its assessment, and the terms for payment if the program succeeds in 

producing its desired outcome. 

A Commission on Social Impact Partnerships would be established to assist the Secretary of the Treasury and the Federal 

Interagency Council on Social Impact Partnerships in reviewing applications for funding, make recommendations to the Secretary of 

the Treasury and the Council on Social Impact Partnerships regarding funding for agreements and feasibility studies, and provide 

other assistance and information. The commission would be composed of nine members: a chair appointed by the President and 

eight members selected by designated Members of Congress. 

Under the demonstration, federal funds could provide up to 50% 

of the cost of a feasibility study to apply for social impact partnership funding. Applications would be able to also include information drawn from feasibility studies funded through other sources. 

However, state and local governments would not be guaranteed 

federal funding for these studies. Applications for funding for feasibility study funding would be required to be submitted by state or 

local governments, and would be required to address: 

• A description of the outcome goals of the project; 

• A description of the intervention; 

• Evidence supporting the likelihood that the intervention 

will produce desired outcomes; 

• A description of the potential metrics to be used; 


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• Expected social benefits to participants receiving the intervention; • Estimated costs to conduct the project; • Estimated savings to the federal government if the outcomes are achieved; • Estimated timeline for completion; • Any partnership needed to successfully execute the project; 

and • Expected resources needed to complete the feasibility 

study. 

The Secretary of the Treasury would be required to make a determination about whether to award funding for a feasibility study 

to an eligible application not later than six months after receiving 

an application for feasibility study funding. In making this determination, the Secretary of the Treasury would be required to consult with the Federal Interagency Council on Social Impact Partnerships and the heads of certain federal agencies. When considering an award of feasibility study funding, the Secretary of the 

Treasury would be required to consider the recommendations made 

by the Commission on Social Impact Partnerships, the likelihood 

that the proposal will achieve the desired outcomes, the value of 

the expected outcomes, and the potential savings to the federal government and to state and local governments if the project was successful. 

The Secretary of the Treasury would be required to make a determination about whether to enter into an agreement with an eligible applicant not later than six months after receiving a project 

application. In making this determination, the Secretary of the 

Treasury would be required to consult with the Federal Interagency Council on Social Impact Partnerships and the head of any 

federal agency administering a similar intervention or serving a 

population similar to the one described in the project application, 

and to consider several factors before making a determination on 

whether to enter into an agreement. These factors would be the 

recommendations made by the Commission on Social Impact Partnerships; the value of the expected outcomes; the likelihood, based 

on evidence provided in the application, that the state or local government will achieve the expected outcomes; savings to the federal 

government; savings to state and local governments; and the expected quality of the evaluation that is associated with the agreement. 

Under the demonstration project, the Secretary of the Treasury 

would be authorized (in consultation with the Federal Interagency 

Council on Social Impact Partnerships and the head of any federal 

agency administering a similar intervention or serving a population 

similar to the one described in the project), to enter into an agreement with a state or local government for the social impact partnership project. The Secretary of the Treasury would be authorized 

to transfer to the head of another federal agency the authority to 

administer an agreement entered into by the Secretary of the 

Treasury and any funds necessary to do so. The state or local government would be required to agree to achieve one or more outcomes specified in the agreement. The federal payment for each 

outcome specified would be required to be less than the value of the 

outcome to the federal government within a period of up to 10 


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years; and the duration of the project could not exceed 10 years. 

Federal payment to the state and local government would be made 

if an independent evaluator had determined that the project has 

met the requirements of, and achieved an outcome specified in, the 

agreement. The Secretary of the Treasury would be required to 

publish a notice of agreement award not later than 30 days after 

entering into an agreement. 

The independent evaluation used to determine payments to state 

and local governments for project outcomes would be required to 

use experimental designs using random assignment, or certain 

other research methodologies when random assignment is not feasible, that allow for the strongest possible causal inferences. 

Progress reports would be due from the evaluator within two years 

of the approval of the project, and biannually thereafter. A report 

would also be due before the scheduled time of the first outcome 

payment, as well as a final report within six months of the completion of the social impact partnership project. 

To carry out these provisions, the Committee bill would direct the Secretary of the Treasury to reserve $100 million of amounts 

made available for the Contingency Fund for State Welfare Programs for FY2017. 

Reason for change 

There is bipartisan support to use federal funds to pay for programs that produce real results. Groups ranging from conservative 

think tanks to liberal advocacy organizations have recommended 

funding programs on a ‘‘pay-for-outcomes’’ basis. States and local 

governments are testing this strategy now, but without federal participation their ability to pay for outcomes is limited as a substantial amount of funding for social services is provided by the federal 

government. By allowing the federal government to partner with 

states and local governments to pay for outcomes, more approaches 

can be tested and evaluated to determine whether they deliver real 

results for people in need. 

Social impact financing allows the government to contract for the 

delivery of services, but in a way that prevents those contracting 

with the government from negotiating contract terms where they 

would receive payment regardless of results. A key feature of social 

impact financing is that the government and investors jointly identify objective, quantifiable outcomes that must be met for payment 

to be made and an independent evaluator determines if the goals 

are met. By selecting an objective outcome goal instead of some 

other metric, the government is less likely to pay for things that 

don’t produce the outcome they are seeking (such as clients served, 

classes taught, or costs incurred). In addition, the outcome for individuals served will be compared with the outcomes for a control 

group to confirm the services provided are responsible for producing the outcome. 

Social impact financing also aligns the interests of the government, investors, and service providers. In a traditional contract, the 

government agrees to pay for various inputs, processes, facilities, 

or services, which encourages providers to increase those factors— 

regardless of whether they improve the outcome or not. In a social 

impact financing structure, government only pays if the project 

achieves the desired outcomes. As a result, investors have a strong 


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2Sam Schaeffer, CEO and Executive Director, Center for Employment Opportunities. Testimony before the House Committee on Ways and Means, Subcommittee on Human Resources, 

September 9, 2014. Available online: http://waysandmeans.house.gov/UploadedFiles/ 

SamlSchaefferlTestimonyl090914lHR14.pdf. 

incentive to produce the positive social outcome and manage the 

project to ensure it succeeds. 

Social impact financing is not a way to privatize social services, 

but a way to improve how social services are funded. Under a social impact financing model, traditional service providers are the 

ones providing the services. However, instead of government paying for the delivery of these services, investors pay these costs during the life of the project. Service providers are still accountable to 

the government for achieving results, and investors must still report to the government on their progress toward achieving the 

project goals. In a Ways and Means Human Resources Subcommittee hearing in September of 2014, one social service provider participating in a social impact contract spoke about the advantages of this type of funding over traditional funding, saying 

‘‘[r]eceiving these resources upfront, on a quarterly basis, allows 

CEO to concentrate on providing excellent services and alleviates 

the burden of fundraising.’’ 2

Some believe government should simply pay for ‘‘proven’’ programs instead of contracting for these services through a social impact mechanism where government only pays if they produce results. However, there are a number of reasons why government 

may want to fund a ‘‘proven’’ program through social impact financing instead of directly operating the program or using traditional 

contracts to deliver the service to individuals in need: 

1. Transfer Risk: By paying only for outcomes, the government 

can transfer risk to investors. This includes the risk that replicating a program in a new area won’t work, that the program won’t 

be implemented correctly, or that some external event will limit the 

program’s impact. 

2. Continue Improvement/Innovation: When running programs 

directly or funding them through traditional contracts, governments will implement policies and practices to ensure the program 

model is followed with fidelity. While this ensures uniformity, it 

can also keep service providers from innovating in ways that improve the program over time. Under a social impact financing 

model, investors are continually focused on the performance of the 

program and have the ability to make ongoing adjustments to ensure the outcomes are realized. 

3. Reduce Bureaucracy: When the federal government runs a social program directly, they are responsible for developing the program policy and regulations, hiring and managing staff, operating 

physical facilities where services are delivered, and paying for the 

delivery of the service itself. When the government runs a program 

via contract, it must still negotiate each of these same elements 

with the contractor. However, under a social impact financing 

model, the government only needs to determine the value of a specific social outcome and agree to pay if it is achieved. Other aspects 

of the program—the selection of the appropriate intervention, raising funds to operate the project, hiring of staff, managing of facilities, and delivery of program services—can be done by individuals 


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3 U.S. Department of Health and Human Services, FY 2017 Budget In Brief. Available online: 

http://www.hhs.gov/about/budget/fy2017/budget-in-brief/acf/mandatory/ 

index.html#contingency. 

outside of government, reducing the need for a large government 

bureaucracy to deliver services. 

4. Provide Predictable Funding for Service Providers: Under a social impact financing model, investors agree to fund services up 

front for as long as the project lasts. This allows service providers 

to make long-term budget plans and focus on delivering high-quality services, instead of devoting time to fundraising or negotiating 

government budgets on an annual basis. 

This proposal has garnered support from dozens of members of 

the House, Republican and Democrat, and a similar proposal has 

been included in recent Obama Administration budgets. The approach has garnered over 40 bipartisan House cosponsors, and a 

companion bill has also been introduced in the Senate by Senators 

Hatch (R–UT) and Bennett (D–CO). As a result, the Committee believes the federal government should further test this social impact 

financing approach to help more individuals in need and to ensure 

taxpayer dollars are only spent when programs deliver results. To fund social impact partnership projects, the bill reserves $100 million in FY 2017 from the $608 million TANF Contingency Fund. 

The FY 2017 President’s Budget recommends repurposing these 

funds, stating ‘‘[t]he current TANF Contingency Fund is not structured in a way that effectively assists states during periods of economic distress. . . . The Budget proposes to repurpose this funding 

for demonstrations that will better serve low-income families.’’ 3 Social impact partnerships will better serve families in need, as federal funds will only be spent on programs and services that have 

been proved to make a real difference in the lives of those in need. 

Effective date 

The provision is effective on October 1, 2016. 

III. VOTES OF THE COMMITTEE 

In compliance with the Rules of the House of Representatives, 

the following statement is made concerning the vote of the Committee on Ways and Means during the markup consideration of 

H.R. 5170, the ‘‘Social Impact Partnerships to Pay for Results Act,’’ 

on May 11, 2016. 

An amendment in the nature of a substitute was offered by 

Chairman Brady and adopted by voice vote (with a quorum being 

present). 

The vote on the amendment offered by Mr. Doggett to the 

amendment in the nature of a substitute to H.R. 5170, which would 

mandate a minimum share of program funding be used for projects 

benefiting children, was not agreed to by a roll call vote of 15 yeas 

to 24 nays (with a quorum being present). The vote was as follows: 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Brady .............................. ........... X ............. Mr. Levin .............................. X ........... .............

Mr. Johnson ........................... ........... X ............. Mr. Rangel ........................... X ........... .............

Mr. Nunes ............................. ........... X ............. Mr. McDermott ..................... X ........... .............

Mr. Tiberi .............................. ........... X ............. Mr. Lewis .............................. X ........... .............

Mr. Reichert .......................... ........... X ............. Mr. Neal ............................... X ........... .............


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Representative Yea Nay Present Representative Yea Nay Present 

Mr. Boustany ......................... ........... X ............. Mr. Becerra .......................... X ........... .............

Mr. Roskam ........................... ........... X ............. Mr. Doggett .......................... X ........... .............

Mr. Price ............................... ........... X ............. Mr. Thompson ...................... X ........... .............

Mr. Buchanan ....................... ........... X ............. Mr. Larson ............................ X ........... .............

Mr. Smith (NE) ...................... ........... X ............. Mr. Blumenauer ................... X ........... .............

Ms. Jenkins ........................... ........... X ............. Mr. Kind ............................... X ........... .............

Mr. Paulsen ........................... ........... X ............. Mr. Pascrell .......................... X ........... .............

Mr. Marchant ........................ ........... X ............. Mr. Crowley .......................... X ........... .............

Ms. Black .............................. ........... X ............. Mr. Davis .............................. X ........... .............

Mr. Reed ............................... ........... X ............. Ms. Sanchez ......................... X ........... .............

Mr. Young ............................. ........... X 

Mr. Kelly ................................ ........... X 

Mr. Renacci ........................... ........... X 

Mr. Meehan ........................... ........... X 

Ms. Noem .............................. ........... X 

Mr. Holding ........................... ........... X 

Mr. Smith (MO) ..................... ........... X 

Mr. Dold ................................ ........... X 

Mr. Rice ................................ ........... X 

The bill was ordered favorably reported to the House of Representatives as amended by a voice vote (with a quorum being 

present). 

IV. 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 bill involves no new budget authority or tax expenditure budget authority. 

V. 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 Committee sets forth the following estimate and comparison prepared by the Director of the Congressional Budget Office. 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, May 16, 2016. 

Hon. KEVIN BRADY, 

Chairman, Committee on Ways and Means, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5170, the Partnering for 

Results Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susanne S. Mehlman. 

Sincerely, 

KEITH HALL. 

H.R. 5170—Partnering for Results Act 

Summary: H.R. 5170 would amend title IV of the Social Security 

Act to provide funding to states and local governments to support 

partnership projects. Such projects would have to identify a social 

problem that states or localities hope to address, such as improving 


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high school graduation rates or increasing employment among recipients of disability benefits. Furthermore, the projects would have 

to be designed by states or localities to produce measurable goals. 

The legislation also would establish the Federal Interagency Council on Social Impact Partnerships and the Commission on Social 

Impact Partnerships to assist the Department of the Treasury in 

implementing the projects. Finally, H.R. 5170 would reserve $100 

million of the $608 million already appropriated for the Temporary 

Assistance for Needy Families (TANF) contingency fund in 2017 to 

support the partnership projects. 

CBO estimates that enacting this legislation would reduce direct 

spending, on net, by $10 million over the 2017–2026 period. Because enacting the legislation would affect direct spending, pay-asyou-go procedures apply. Enacting H.R. 5170 would not affect revenues. CBO estimates that enacting H.R. 5170 would not increase 

net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. 

H.R. 5170 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary effect of this legislation is shown in the following table. The 

impacts of this legislation fall within budget function 600 (income 

security). 

By fiscal year, in millions of dollars— 

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017– 

2021 

2017– 

2026 

INCREASES OR DECREASES (¥) IN DIRECT SPENDING 

Estimated Budget Authority .............. ¥87 ¥3 5 5 5 5 5 10 20 25 ¥75 ¥10 

Estimated Outlays ............................. ¥87 ¥3 5 5 5 5 5 10 20 25 ¥75 ¥10 

Basis of estimate: Under current law, CBO estimates that outlays for the TANF contingency fund for 2017 will total $608 million 

over the 2017–2018 period. CBO estimates that the spending associated with the partnership projects, as provided for under the bill, 

would occur at a slower rate. Of the $100 million that would be reserved for partnership projects, up to $10 million could be used for 

feasibility studies developed by states to apply for project funding; 

the remaining funds could be used by the Treasury to evaluate the 

projects and to provide payments to states or localities if the 

projects meet certain goals. Such funding would be available for 10 

years following enactment. Because there is uncertainty as to the 

extent states conducting the projects will achieve the measureable 

outcomes required for federal reimbursement, CBO estimates that 

not all of the finds reserved for the program will be spent. In total, 

we estimate that enacting this legislation would decrease net direct 

spending from the contingency fund by $10 million over the 2017– 

2026 period. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 


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22 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5170 AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON WAYS AND MEANS ON MAY 11, 2016 

By fiscal year in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016– 

2021 

2016– 

2026 

NET INCREASES OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-As-You-Go Impact .................................... 0 ¥87 ¥3 5 5 5 5 5 10 20 25 ¥75 ¥10 

Increase in long-term direct spending and deficits: CBO estimates that enacting the legislation would not increase net direct 

spending or on-budget deficits in any of the four consecutive 10- 

year periods beginning in 2027. 

Intergovernmental and private-sector impact: H.R. 5170 contains 

no intergovernmental or private-sector mandates as defined in the 

UMRA. Any costs to states associated with the demonstration 

projects authorized in the bill would be incurred voluntarily as conditions of assistance. 

Estimate prepared by: Federal Costs: Susanne S. Mehlman; Impact on State, Local, and Tribal Governments: Leo Lex; Impact on 

the Private Sector: Paige Piper/Bach. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

VI. OTHER MATTERS TO BE DISCUSSED UNDER THE 

RULES OF THE HOUSE 

A. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

With respect to clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the description portions of this report. 

B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

With respect to the requirement of clause 3(c)(4) of rule XIII of 

the Rules of the House of Representatives, the performance goals 

and objectives of this legislation are to provide federal funding to 

pay only for social services that deliver results beginning October 

1, 2016. 

C. APPLICABILITY OF HOUSE RULE XXI 5(b) 

Rule XXI 5(b) of the Rules of the House of Representatives provides, in part, that ‘‘A bill or joint resolution, amendment, or conference report carrying a Federal income tax rate increase may not 

be considered as passed or agreed to unless so determined by a 

vote of not less than three-fifths of the Members voting, a quorum 

being present.’’ The Committee has carefully reviewed the bill, and 

states that the bill does not involve any Federal income tax rate 

increases within the meaning of the rule. 


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D. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND

LIMITED TARIFF BENEFITS

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the provisions of the bill, and states that the provisions of the bill do not 

contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

E. DUPLICATION OF FEDERAL PROGRAMS

In compliance with Sec. 3(g)(2) of H. Res. 5 (114th Congress), the 

Committee states that no provision of the bill establishes or reauthorizes: (1) a program of the Federal Government known to be duplicative of another Federal program; (2) a program included in any 

report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139; or (3) a program related 

to a program identified in the most recent Catalog of Federal Domestic Assistance, published pursuant to the Federal Program Information Act (Pub. L. No. 95–220, as amended by Pub. L. No. 98– 

169). 

F. DISCLOSURE OF DIRECTED RULE MAKINGS

In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), the 

following statement is made concerning directed rule makings: The 

Committee estimates that the bill requires no directed rule makings within the meaning of such section. 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS 

REPORTED 

A. TEXT OF EXISTING LAW AMENDED OR REPEALED BY THE BILL, AS

REPORTED

In compliance with clause 3(e)(1)(A) of rule XIII of the Rules of 

the House of Representatives, the text of each section proposed to 

be amended or repealed by the bill, as reported, is shown below: 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e)(1)(A) of rule XIII of the Rules of 

the House of Representatives, the text of each section proposed to 

be amended or repealed by the bill, as reported, is shown below: 

SOCIAL SECURITY ACT 

* * * * * * * 

TITLE IV—GRANTS TO STATES FOR AID AND SERVICES TO 

NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES 

PART A—BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 

* * * * * * * 


jstallworth on DSK7TPTVN1PROD with REPORTS
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SEC. 403. GRANTS TO STATES. 

(a) GRANTS.— 

(1) FAMILY ASSISTANCE GRANT.— 

(A) IN GENERAL.—Each eligible State shall be entitled to 

receive from the Secretary, for fiscal year 2012, a grant in 

an amount equal to the State family assistance grant. 

(B) STATE FAMILY ASSISTANCE GRANT.—The State family 

assistance grant payable to a State for a fiscal year shall 

be the amount that bears the same ratio to the amount 

specified in subparagraph (C) of this paragraph (as in effect just before the enactment of the Welfare Integrity and 

Data Improvement Act) as the amount required to be paid 

to the State under this paragraph (as so in effect) for fiscal 

year 2002 (determined without regard to any reduction 

pursuant to section 409 or 412(a)(1)) bears to the total 

amount required to be paid under this paragraph for fiscal 

year 2002 (as so determined). 

(C) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

appropriated for fiscal year 2012 $16,566,542,000 for 

grants under this paragraph. 

(2) HEALTHY MARRIAGE PROMOTION AND RESPONSIBLE FATHERHOOD GRANTS.— 

(A) IN GENERAL.— 

(i) USE OF FUNDS.—Subject to subparagraphs (B), 

(C), and (E), the Secretary may use the funds made 

available under subparagraph (D) for the purpose of 

conducting and supporting research and demonstration projects by public or private entities, and providing technical assistance to States, Indian tribes and 

tribal organizations, and such other entities as the 

Secretary may specify that are receiving a grant under 

another provision of this part. 

(ii) LIMITATIONS.—The Secretary may not award 

funds made available under this paragraph on a noncompetitive basis, and may not provide any such funds 

to an entity for the purpose of carrying out healthy 

marriage promotion activities or for the purpose of 

carrying out activities promoting responsible fatherhood unless the entity has submitted to the Secretary 

an application (or, in the case of an entity seeking 

funding to carry out healthy marriage promotion activities and activities promoting responsible fatherhood, a combined application that contains assurances 

that the entity will carry out such activities under separate programs and shall not combine any funds 

awarded to carry out either such activities) which— 

(I) describes— 

(aa) how the programs or activities proposed in the application will address, as appropriate, issues of domestic violence; and 

(bb) what the applicant will do, to the extent relevant, to ensure that participation in 

the programs or activities is voluntary, and to 


jstallworth on DSK7TPTVN1PROD with REPORTS
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inform potential participants that their participation is voluntary; and 

(II) contains a commitment by the entity— 

(aa) to not use the funds for any other purpose; and 

(bb) to consult with experts in domestic violence or relevant community domestic violence 

coalitions in developing the programs and activities. 

(iii) HEALTHY MARRIAGE PROMOTION ACTIVITIES.—In 

clause (ii), the term ‘‘healthy marriage promotion activities’’ means the following: 

(I) Public advertising campaigns on the value of 

marriage and the skills needed to increase marital 

stability and health. 

(II) Education in high schools on the value of 

marriage, relationship skills, and budgeting. 

(III) Marriage education, marriage skills, and 

relationship skills programs, that may include 

parenting skills, financial management, conflict 

resolution, and job and career advancement. 

(IV) Pre-marital education and marriage skills 

training for engaged couples and for couples or individuals interested in marriage. 

(V) Marriage enhancement and marriage skills 

training programs for married couples. 

(VI) Divorce reduction programs that teach relationship skills. 

(VII) Marriage mentoring programs which use 

married couples as role models and mentors in atrisk communities. 

(VIII) Programs to reduce the disincentives to 

marriage in means-tested aid programs, if offered 

in conjunction with any activity described in this 

subparagraph. 

(B) LIMITATION ON USE OF FUNDS FOR DEMONSTRATION

PROJECTS FOR COORDINATION OF PROVISION OF CHILD WEL- FARE AND TANF SERVICES TO TRIBAL FAMILIES AT RISK OF

CHILD ABUSE OR NEGLECT.— (i) IN GENERAL.—Of the amounts made available 

under subparagraph (D) for a fiscal year, the Secretary may not award more than $2,000,000 on a competitive basis to fund demonstration projects designed 

to test the effectiveness of tribal governments or tribal 

consortia in coordinating the provision to tribal families at risk of child abuse or neglect of child welfare 

services and services under tribal programs funded 

under this part. 

(ii) LIMITATION ON USE OF FUNDS.—A grant made 

pursuant to clause (i) to such a project shall not be 

used for any purpose other than— 

(I) to improve case management for families eligible for assistance from such a tribal program; 

(II) for supportive services and assistance to 

tribal children in out-of-home placements and the 


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tribal families caring for such children, including 

families who adopt such children; and 

(III) for prevention services and assistance to 

tribal families at risk of child abuse and neglect. 

(iii) REPORTS.—The Secretary may require a recipient of funds awarded under this subparagraph to provide the Secretary with such information as the Secretary deems relevant to enable the Secretary to facilitate and oversee the administration of any project for 

which funds are provided under this subparagraph. 

(C) LIMITATION ON USE OF FUNDS FOR ACTIVITIES PROMOTING RESPONSIBLE FATHERHOOD.— 

(i) IN GENERAL.—Of the amounts made available 

under subparagraph (D) for a fiscal year, the Secretary may not award more than $75,000,000 on a 

competitive basis to States, territories, Indian tribes 

and tribal organizations, and public and nonprofit 

community entities, including religious organizations, 

for activities promoting responsible fatherhood. 

(ii) ACTIVITIES PROMOTING RESPONSIBLE FATHER- HOOD.—In this paragraph, the term ‘‘activities promoting responsible fatherhood’’ means the following: 

(I) Activities to promote marriage or sustain 

marriage through activities such as counseling, 

mentoring, disseminating information about the 

benefits of marriage and 2-parent involvement for 

children, enhancing relationship skills, education 

regarding how to control aggressive behavior, disseminating information on the causes of domestic 

violence and child abuse, marriage preparation 

programs, premarital counseling, marital inventories, skills-based marriage education, financial 

planning seminars, including improving a family’s 

ability to effectively manage family business affairs by means such as education, counseling, or 

mentoring on matters related to family finances, 

including household management, budgeting, 

banking, and handling of financial transactions 

and home maintenance, and divorce education and 

reduction programs, including mediation and 

counseling. 

(II) Activities to promote responsible parenting 

through activities such as counseling, mentoring, 

and mediation, disseminating information about 

good parenting practices, skills-based parenting 

education, encouraging child support payments, 

and other methods. 

(III) Activities to foster economic stability by 

helping fathers improve their economic status by 

providing activities such as work first services, job 

search, job training, subsidized employment, job 

retention, job enhancement, and encouraging education, including career-advancing education, dissemination of employment materials, coordination 

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jstallworth on DSK7TPTVN1PROD with REPORTS
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fare-to-work programs, referrals to local employment training initiatives, and other methods. 

(IV) Activities to promote responsible fatherhood 

that are conducted through a contract with a nationally recognized, nonprofit fatherhood promotion organization, such as the development, 

promotion, and distribution of a media campaign 

to encourage the appropriate involvement of parents in the life of any child and specifically the 

issue of responsible fatherhood, and the development of a national clearinghouse to assist States 

and communities in efforts to promote and support marriage and responsible fatherhood. 

(D) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

appropriated for fiscal year 2012 for expenditure in accordance with this paragraph— 

(i) $75,000,000 for awarding funds for the purpose of 

carrying out healthy marriage promotion activities; 

and 

(ii) $75,000,000 for awarding funds for the purpose 

of carrying out activities promoting responsible fatherhood. 

If the Secretary makes an award under subparagraph 

(B)(i) for fiscal year 2012, the funds for such award shall 

be taken in equal portion from the amounts appropriated 

under clauses (i) and (ii). 

(E) PREFERENCE.—In awarding funds under this paragraph for fiscal year 2011, the Secretary shall give preference to entities that were awarded funds under this 

paragraph for any prior fiscal year and that have demonstrated the ability to successfully carry out the programs 

funded under this paragraph. 

(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN

CERTAIN STATES.— 

(A) IN GENERAL.—Each qualifying State shall, subject to 

subparagraph (F), be entitled to receive from the Secretary— 

(i) for fiscal year 1998 a grant in an amount equal 

to 2.5 percent of the total amount required to be paid 

to the State under former section 403 (as in effect during fiscal year 1994) for fiscal year 1994; and 

(ii) for each of fiscal years 1999, 2000, and 2001, a 

grant in an amount equal to the sum of— 

(I) the amount (if any) required to be paid to the 

State under this paragraph for the immediately 

preceding fiscal year; and 

(II) 2.5 percent of the sum of— 

(aa) the total amount required to be paid to 

the State under former section 403 (as in effect during fiscal year 1994) for fiscal year 

1994; and 

(bb) the amount (if any) required to be paid 

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cal year preceding the fiscal year for which 

the grant is to be made. 

(B) PRESERVATION OF GRANT WITHOUT INCREASES FOR

STATES FAILING TO REMAIN QUALIFYING STATES.—Each 

State that is not a qualifying State for a fiscal year specified in subparagraph (A)(ii) but was a qualifying State for 

a prior fiscal year shall, subject to subparagraph (F), be 

entitled to receive from the Secretary for the specified fiscal year, a grant in an amount equal to the amount required to be paid to the State under this paragraph for the 

most recent fiscal year for which the State was a qualifying State. 

(C) QUALIFYING STATE.— 

(i) IN GENERAL.—For purposes of this paragraph, a 

State is a qualifying State for a fiscal year if— 

(I) the level of welfare spending per poor person 

by the State for the immediately preceding fiscal 

year is less than the national average level of 

State welfare spending per poor person for such 

preceding fiscal year; and 

(II) the population growth rate of the State (as 

determined by the Bureau of the Census) for the 

most recent fiscal year for which information is 

available exceeds the average population growth 

rate for all States (as so determined) for such 

most recent fiscal year. 

(ii) STATE MUST QUALIFY IN FISCAL YEAR 1998.—Notwithstanding clause (i), a State shall not be a qualifying State for any fiscal year after 1998 by reason of 

clause (i) if the State is not a qualifying State for fiscal 

year 1998 by reason of clause (i). 

(iii) CERTAIN STATES DEEMED QUALIFYING STATES.— 

For purposes of this paragraph, a State is deemed to 

be a qualifying State for fiscal years 1998, 1999, 2000, 

and 2001 if— 

(I) the level of welfare spending per poor person 

by the State for fiscal year 1994 is less than 35 

percent of the national average level of State welfare spending per poor person for fiscal year 1994; 

or 

(II) the population of the State increased by 

more than 10 percent from April 1, 1990 to July 

1, 1994, according to the population estimates in 

publication CB94–204 of the Bureau of the Census. 

(D) DEFINITIONS.—As used in this paragraph: 

(i) LEVEL OF WELFARE SPENDING PER POOR PER- SON.—The term ‘‘level of State welfare spending per 

poor person’’ means, with respect to a State and a fiscal year— 

(I) the sum of— 

(aa) the total amount required to be paid to 

the State under former section 403 (as in effect during fiscal year 1994) for fiscal year 

1994; and 


jstallworth on DSK7TPTVN1PROD with REPORTS
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(bb) the amount (if any) paid to the State 

under this paragraph for the immediately preceding fiscal year; divided by 

(II) the number of individuals, according to the 

1990 decennial census, who were residents of the 

State and whose income was below the poverty 

line. 

(ii) NATIONAL AVERAGE LEVEL OF STATE WELFARE

SPENDING PER POOR PERSON.—The term ‘‘national average level of State welfare spending per poor person’’ 

means, with respect to a fiscal year, an amount equal 

to— 

(I) the total amount required to be paid to the 

States under former section 403 (as in effect during fiscal year 1994) for fiscal year 1994; divided 

by 

(II) the number of individuals, according to the 

1990 decennial census, who were residents of any 

State and whose income was below the poverty 

line. 

(iii) STATE.—The term ‘‘State’’ means each of the 50 

States of the United States and the District of Columbia. 

(E) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

appropriated for fiscal years 1998, 1999, 2000, and 2001 

such sums as are necessary for grants under this paragraph, in a total amount not to exceed $800,000,000. 

(F) GRANTS REDUCED PRO RATA IF INSUFFICIENT APPROPRIATIONS.—If the amount appropriated pursuant to this 

paragraph for a fiscal year (or portion of a fiscal year) is 

less than the total amount of payments otherwise required 

to be made under this paragraph for the fiscal year (or 

portion of the fiscal year), then the amount otherwise payable to any State for the fiscal year (or portion of the fiscal 

year) under this paragraph shall be reduced by a percentage equal to the amount so appropriated divided by such 

total amount. 

(G) BUDGET SCORING.—Notwithstanding section 

257(b)(2) of the Balanced Budget and Emergency Deficit 

Control Act of 1985, the baseline shall assume that no 

grant shall be made under this paragraph after fiscal year 

2001. 

(H) REAUTHORIZATION.—Notwithstanding any other provision of this paragraph— 

(i) any State that was a qualifying State under this 

paragraph for fiscal year 2001 or any prior fiscal year 

shall be entitled to receive from the Secretary for each 

of fiscal years 2002 and 2003 a grant in an amount 

equal to the amount required to be paid to the State 

under this paragraph for the most recent fiscal year in 

which the State was a qualifying State; 

(ii) subparagraph (G) shall be applied as if ‘‘fiscal 

year 2011’’ were substituted for ‘‘fiscal year 2001’’; 


jstallworth on DSK7TPTVN1PROD with REPORTS
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(iii) out of any money in the Treasury of the United 

States not otherwise appropriated, there are appropriated for each of fiscal years 2002 and 2003 such 

sums as are necessary for grants under this subparagraph. 

(4) BONUS TO REWARD HIGH PERFORMANCE STATES.— (A) IN GENERAL.—The Secretary shall make a grant pursuant to this paragraph to each State for each bonus year 

for which the State is a high performing State. 

(B) AMOUNT OF GRANT.— (i) IN GENERAL.—Subject to clause (ii) of this subparagraph, the Secretary shall determine the amount 

of the grant payable under this paragraph to a high 

performing State for a bonus year, which shall be 

based on the score assigned to the State under subparagraph (D)(i) for the fiscal year that immediately 

precedes the bonus year. 

(ii) LIMITATION.—The amount payable to a State 

under this paragraph for a bonus year shall not exceed 

5 percent of the State family assistance grant. 

(C) FORMULA FOR MEASURING STATE PERFORMANCE.—Not 

later than 1 year after the date of the enactment of the 

Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the Secretary, in consultation with the 

National Governors’ Association and the American Public 

Welfare Association, shall develop a formula for measuring 

State performance in operating the State program funded 

under this part so as to achieve the goals set forth in section 401(a). 

(D) SCORING OF STATE PERFORMANCE; SETTING OF PER- FORMANCE THRESHOLDS.—For each bonus year, the Secretary shall— 

(i) use the formula developed under subparagraph 

(C) to assign a score to each eligible State for the fiscal 

year that immediately precedes the bonus year; and 

(ii) prescribe a performance threshold in such a 

manner so as to ensure that— 

(I) the average annual total amount of grants to 

be made under this paragraph for each bonus year 

equals $200,000,000; and 

(II) the total amount of grants to be made under 

this paragraph for all bonus years equals 

$1,000,000,000. 

(E) DEFINITIONS.—As used in this paragraph: 

(i) BONUS YEAR.—The term ‘‘bonus year’’ means fiscal years 1999, 2000, 2001, 2002, and 2003. 

(ii) HIGH PERFORMING STATE.—The term ‘‘high performing State’’ means, with respect to a bonus year, 

an eligible State whose score assigned pursuant to 

subparagraph (D)(i) for the fiscal year immediately 

preceding the bonus year equals or exceeds the performance threshold prescribed under subparagraph 

(D)(ii) for such preceding fiscal year. 

(F) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 


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appropriated for fiscal years 1999 through 2003 

$1,000,000,000 for grants under this paragraph. 

(5) WELFARE-TO-WORK GRANTS.— (A) FORMULA GRANTS.— (i) ENTITLEMENT.—A State shall be entitled to receive from the Secretary of Labor a grant for each fiscal year specified in subparagraph (H) of this paragraph for which the State is a welfare-to-work State, 

in an amount that does not exceed the lesser of— 

(I) 2 times the total of the expenditures by the 

State (excluding qualified State expenditures (as 

defined in section 409(a)(7)(B)(i)) and any expenditure described in subclause (I), (II), or (IV) of section 409(a)(7)(B)(iv)) during the period permitted 

under subparagraph (C)(vii) of this paragraph for 

the expenditure of funds under the grant for activities described in subparagraph (C)(i) of this 

paragraph; or 

(II) the allotment of the State under clause (iii) 

of this subparagraph for the fiscal year. 

(ii) WELFARE-TO-WORK STATE.—A State shall be considered a welfare-to-work State for a fiscal year for 

purposes of this paragraph if the Secretary of Labor 

determines that the State meets the following requirements: 

(I) The State has submitted to the Secretary of 

Labor and the Secretary of Health and Human 

Services (in the form of an addendum to the State 

plan submitted under section 402) a plan which— 

(aa) describes how, consistent with this subparagraph, the State will use any funds provided under this subparagraph during the fiscal year; 

(bb) specifies the formula to be used pursuant to clause (vi) to distribute funds in the 

State, and describes the process by which the 

formula was developed; 

(cc) contains evidence that the plan was developed in consultation and coordination with 

appropriate entitites in sub-State areas; 

(dd) contains assurances by the Governor of 

the State that the private industry council 

(and any alternate agency designated by the 

Governor under item (ee)) for a service delivery area in the State will coordinate the expenditure of any funds provided under this 

subparagraph for the benefit of the service delivery area with the expenditure of the funds 

provided to the State under section 403(a)(1); 

(ee) if the Governor of the State desires to 

have an agency other than a private industry 

council administer the funds provided under 

this subparagraph for the benefit of 1 or more 

service delivery areas in the State, contains 

an application to the Secretary of Labor for a 


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waiver of clause (vii)(I) with respect to the 

area or areas in order to permit an alternate 

agency designated by the Governor to so administer the funds; and 

(ff) describes how the State will ensure that 

a private industry council to which information is disclosed pursuant to section 

403(a)(5)(K) or 454A(f)(5) has procedures for 

safeguarding the information and for ensuring 

that the information is used solely for the 

purpose described in that section. 

(II) The State has provided to the Secretary of 

Labor an estimate of the amount that the State 

intends to expend during the period permitted 

under subparagraph (C)(vii) of this paragraph for 

the expenditure of funds under the grant (excluding expenditures described in section 

409(a)(7)(B)(iv) (other than subclause (III) thereof)) pursuant to this paragraph. 

(III) The State has agreed to negotiate in good 

faith with the Secretary of Health and Human 

Services with respect to the substance and funding of any evaluation under section 413(j), and to 

cooperate with the conduct of any such evaluation. 

(IV) The State is an eligible State for the fiscal 

year. 

(V) The State certifies that qualified State expenditures (within the meaning of section 

409(a)(7)) for the fiscal year will be not less than 

the applicable percentage of historic State expenditures (within the meaning of section 409(a)(7)) 

with respect to the fiscal year. 

(iii) ALLOTMENTS TO WELFARE-TO-WORK STATES.— (I) IN GENERAL.—Subject to this clause, the allotment of a welfare-to-work State for a fiscal year 

shall be the available amount for the fiscal year, 

multiplied by the State percentage for the fiscal 

year. 

(II) MINIMUM ALLOTMENT.—The allotment of a 

welfare-to-work State (other than Guam, the Virgin Islands, or American Samoa) for a fiscal year 

shall not be less than 0.25 percent of the available 

amount for the fiscal year. 

(III) PRO RATA REDUCTION.—Subject to subclause (II), the Secretary of Labor shall make pro 

rata reductions in the allotments to States under 

this clause for a fiscal year as necessary to ensure 

that the total of the allotments does not exceed 

the available amount for the fiscal year. 

(iv) AVAILABLE AMOUNT.—As used in this subparagraph, the term ‘‘available amount’’ means, for a fiscal 

year, the sum of— 

(I) 75 percent of the sum of— 

(aa) the amount specified in subparagraph 

(H) for the fiscal year, minus the total of the 


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amounts reserved pursuant to subparagraphs 

(E), (F), and (G) for the fiscal year; and 

(bb) any amount reserved pursuant to subparagraph (E) for the immediately preceding 

fiscal year that has not been obligated; and 

(II) any available amount for the immediately 

preceding fiscal year that has not been obligated 

by a State, other than funds reserved by the State 

for distribution under clause (vi)(III) and funds 

distributed pursuant to clause (vi)(I) in any State 

in which the service delivery area is the State. 

(v) STATE PERCENTAGE.—As used in clause (iii), the 

term ‘‘State percentage’’ means, with respect to a fiscal 

year, 1⁄2 of the sum of— 

(I) the percentage represented by the number of 

individuals in the State whose income is less than 

the poverty line divided by the number of such individuals in the United States; and 

(II) the percentage represented by the number 

of adults who are recipients of assistance under 

the State program funded under this part divided 

by the number of adults in the United States who 

are recipients of assistance under any State program funded under this part. 

(vi) PROCEDURE FOR DISTRIBUTION OF FUNDS WITHIN

STATES.— 

(I) ALLOCATION FORMULA.—A State to which a 

grant is made under this subparagraph shall devise a formula for allocating not less than 85 percent of the amount of the grant among the service 

delivery areas in the State, which— 

(aa) determines the amount to be allocated 

for the benefit of a service delivery area in 

proportion to the number (if any) by which 

the population of the area with an income 

that is less than the poverty line exceeds 7.5 

percent of the total population of the area, relative to such number for all such areas in the 

State with such an excess, and accords a 

weight of not less than 50 percent to this factor; 

(bb) may determine the amount to be allocated for the benefit of such an area in proportion to the number of adults residing in 

the area who have been recipients of assistance under the State program funded under 

this part (whether in effect before or after the 

amendments made by section 103(a) of the 

Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied 

to the State) for at least 30 months (whether 

or not consecutive) relative to the number of 

such adults residing in the State; and 

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34 

portion to the number of unemployed individuals residing in the area relative to the number of such individuals residing in the State. 

(II) DISTRIBUTION OF FUNDS.— (aa) IN GENERAL.—If the amount allocated 

by the formula to a service delivery area is at 

least $100,000, the State shall distribute the 

amount to the entity administering the grant 

in the area. 

(bb) SPECIAL RULE.—If the amount allocated 

by the formula to a service delivery area is 

less than $100,000, the sum shall be available 

for distribution in the State under subclause 

(III) during the fiscal year. 

(III) PROJECTS TO HELP LONG-TERM RECIPIENTS

OF ASSISTANCE ENTER UNSUBSIDIZED JOBS.—The 

Governor of a State to which a grant is made 

under this subparagraph may distribute not more 

than 15 percent of the grant funds (plus any 

amount required to be distributed under this subclause by reason of subclause (II)(bb)) to projects 

that appear likely to help long-term recipients of 

assistance under the State program funded under 

this part (whether in effect before or after the 

amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the State) 

enter unsubsidized employment. 

(vii) ADMINISTRATION.— 

(I) PRIVATE INDUSTRY COUNCILS.—The private 

industry council for a service delivery area in a 

State shall have sole authority, in coordination 

with the chief elected official (as defined in section 

3 of the Workforce Innovation and Opportunity 

Act) of the area, to expend the amounts distributed under clause (vi)(II)(aa) for the benefit of the 

service delivery area, in accordance with the assurances described in clause (ii)(I)(dd) provided by 

the Governor of the State. 

(II) ENFORCEMENT OF COORDINATION OF EXPENDITURES WITH OTHER EXPENDITURES UNDER THIS

PART.—Notwithstanding subclause (I) of this 

clause, on a determination by the Governor of a 

State that a private industry council (or an alternate agency described in clause (ii)(I)(dd)) has 

used funds provided under this subparagraph in a 

manner inconsistent with the assurances described in clause (ii)(I)(dd)— 

(aa) the private industry council (or such alternate agency) shall remit the funds to the 

Governor; and 

(bb) the Governor shall apply to the Secretary of Labor for a waiver of subclause (I) of 

this clause with respect to the service delivery 

area or areas involved in order to permit an 


jstallworth on DSK7TPTVN1PROD with REPORTS
35 

alternate agency designated by the Governor 

to administer the funds in accordance with 

the assurances. 

(III) AUTHORITY TO PERMIT USE OF ALTERNATE

ADMINISTERING AGENCY.—The Secretary of Labor 

shall approve an application submitted under 

clause (ii)(I)(ee) or subclause (II)(bb) of this clause 

to waive subclause (I) of this clause with respect 

to 1 or more service delivery areas if the Secretary 

determines that the alternate agency designated 

in the application would improve the effectiveness 

or efficiency of the administration of amounts distributed under clause (vi)(II)(aa) for the benefit of 

the area or areas. 

(viii) DATA TO BE USED IN DETERMINING THE NUMBER

OF ADULT TANF RECIPIENTS.—For purposes of this subparagraph, the number of adult recipients of assistance under a State program funded under this part for 

a fiscal year shall be determined using data for the 

most recent 12-month period for which such data is 

available before the beginning of the fiscal year. 

(ix) REVERSION OF UNALLOTTED FORMULA FUNDS.—If 

at the end of any fiscal year any funds available under 

this subparagraph have not been allotted due to a determination by the Secretary that any State has not 

met the requirements of clause (ii), such funds shall be 

transferred to the General Fund of the Treasury of the 

United States. 

(B) COMPETITIVE GRANTS.— 

(i) IN GENERAL.—The Secretary of Labor shall award 

grants in accordance with this subparagraph, in fiscal 

years 1998 and 1999, for projects proposed by eligible 

applicants, based on the following: 

(I) The effectiveness of the proposal in— 

(aa) expanding the base of knowledge about 

programs aimed at moving recipients of assistance under State programs funded under 

this part who are least job ready into unsubsidized employment. 

(bb) moving recipients of assistance under 

State programs funded under this part who 

are least job ready into unsubsidized employment; and 

(cc) moving recipients of assistance under 

State programs funded under this part who 

are least job ready into unsubsidized employment, even in labor markets that have a 

shortage of low-skill jobs. 

(II) At the discretion of the Secretary of Labor, 

any of the following: 

(aa) The history of success of the applicant 

in moving individuals with multiple barriers 

into work. 

(bb) Evidence of the applicant’s ability to leverage private, State, and local resources. 


jstallworth on DSK7TPTVN1PROD with REPORTS
36 

(cc) Use by the applicant of State and local 

resources beyond those required by subparagraph (A). 

(dd) Plans of the applicant to coordinate 

with other organizations at the local and 

State level. 

(ee) Use by the applicant of current or 

former recipients of assistance under a State 

program funded under this part as mentors, 

case managers, or service providers. 

(ii) ELIGIBLE APPLICANTS.—As used in clause (i), the 

term ‘‘eligible applicant’’ means a private industry 

council for a service delivery area in a State, a political subdivision of a State, or a private entity applying 

in conjunction with the private industry council for 

such a service delivery area or with such a political 

subdivision, that submits a proposal developed in consultation with the Governor of the State. 

(iii) DETERMINATION OF GRANT AMOUNT.—In determining the amount of a grant to be made under this 

subparagraph for a project proposed by an applicant, 

the Secretary of Labor shall provide the applicant with 

an amount sufficient to ensure that the project has a 

reasonable opportunity to be successful, taking into account the number of long-term recipients of assistance 

under a State program funded under this part, the 

level of unemployment, the job opportunities and job 

growth, the poverty rate, and such other factors as the 

Secretary of Labor deems appropriate, in the area to 

be served by the project. 

(iv) CONSIDERATION OF NEEDS OF RURAL AREAS AND

CITIES WITH LARGE CONCENTRATIONS OF POVERTY.—In 

making grants under this subparagraph, the Secretary 

of Labor shall consider the needs of rural areas and 

cities with large concentrations of residents with an 

income that is less than the poverty line. 

(v) FUNDING.—For grants under this subparagraph 

for each fiscal year specified in subparagraph (H), 

there shall be available to the Secretary of Labor an 

amount equal to the sum of— 

(I) 25 percent of the sum of— 

(aa) the amount specified in subparagraph 

(H) for the fiscal year, minus the total of the 

amounts reserved pursuant to subparagraphs 

(E), (F), and (G) for the fiscal year; and 

(bb) any amount reserved pursuant to subparagraph (E) for the immediately preceding 

fiscal year that has not been obligated; and 

(II) any amount available for grants under this 

subparagraph for the immediately preceding fiscal 

year that has not been obligated. 

(C) LIMITATIONS ON USE OF FUNDS.— (i) ALLOWABLE ACTIVITIES.—An entity to which 

funds are provided under this paragraph shall use the 

funds to move individuals into and keep individuals in 


jstallworth on DSK7TPTVN1PROD with REPORTS
37 

lasting unsubsidized employment by means of any of 

the following: 

(I) The conduct and administration of community service or work experience programs. 

(II) Job creation through public or private sector 

employment wage subsidies. 

(III) On-the-job training. 

(IV) Contracts with public or private providers 

of readiness, placement, and post-employment 

services, or if the entity is not a private industry 

council or workforce investment board, the direct 

provision of such services. 

(V) Job vouchers for placement, readiness, and 

postemployment services. 

(VI) Job retention or support services if such 

services are not otherwise available. 

(VII) Not more than 6 months of vocational educational or job training. 

Contracts or vouchers for job placement services supported by such funds must require that at least 1⁄2 of 

the payment occur after an eligible individual placed 

into the workforce has been in the workforce for 6 

months. 

(ii) GENERAL ELIGIBILITY.—An entity that operates a 

project with funds provided under this paragraph may 

expend funds provided to the project for the benefit of 

recipients of assistance under the program funded 

under this part of the State in which the entity is located who— 

(I) has received assistance under the State program funded under this part (whether in effect before or after the amendments made by section 103 

of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first apply to the 

State) for at least 30 months (whether or not consecutive); or 

(II) within 12 months, will become ineligible for 

assistance under the State program funded under 

this part by reason of a durational limit on such 

assistance, without regard to any exemption provided pursuant to section 408(a)(7)(C) that may 

apply to the individual. 

(iii) NONCUSTODIAL PARENTS.—An entity that operates a project with funds provided under this paragraph may use the funds to provide services in a form 

described in clause (i) to noncustodial parents with respect to whom the requirements of the following subclauses are met: 

(I) The noncustodial parent is unemployed, underemployed, or having difficulty in paying child 

support obligations. 

(II) At least 1 of the following applies to a minor 

child of the noncustodial parent (with preference 

in the determination of the noncustodial parents 

to be provided services under this paragraph to be 


jstallworth on DSK7TPTVN1PROD with REPORTS
38 

provided by the entity to those noncustodial parents with minor children who meet, or who have 

custodial parents who meet, the requirements of 

item (aa)): 

(aa) The minor child or the custodial parent 

of the minor child meets the requirements of 

subclause (I) or (II) of clause (ii). 

(bb) The minor child is eligible for, or is receiving, benefits under the program funded 

under this part. 

(cc) The minor child received benefits under 

the program funded under this part in the 12- 

month period preceding the date of the determination but no longer receives such benefits. 

(dd) The minor child is eligible for, or is receiving, assistance under the Food and Nutrition Act of 2008, benefits under the supplemental security income program under title 

XVI of this Act, medical assistance under title 

XIX of this Act, or child health assistance 

under title XXI of this Act. 

(III) In the case of a noncustodial parent who 

becomes enrolled in the project on or after the 

date of the enactment of this clause, the noncustodial parent is in compliance with the terms of an 

oral or written personal responsibility contract entered into among the noncustodial parent, the entity, and (unless the entity demonstrates to the 

Secretary that the entity is not capable of coordinating with such agency) the agency responsible 

for administering the State plan under part D, 

which was developed taking into account the employment and child support status of the noncustodial parent, which was entered into not later 

than 30 (or, at the option of the entity, not later 

than 90) days after the noncustodial parent was 

enrolled in the project, and which, at a minimum, 

includes the following: 

(aa) A commitment by the noncustodial parent to cooperate, at the earliest opportunity, 

in the establishment of the paternity of the 

minor child, through voluntary acknowledgement or other procedures, and in the establishment of a child support order. 

(bb) A commitment by the noncustodial parent to cooperate in the payment of child support for the minor child, which may include a 

modification of an existing support order to 

take into account the ability of the noncustodial parent to pay such support and the participation of such parent in the project. 

(cc) A commitment by the noncustodial parent to participate in employment or related 

activities that will enable the noncustodial 

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ments, and if the noncustodial parent has not 

attained 20 years of age, such related activities may include completion of high school, a 

general equivalency degree, or other education directly related to employment. 

(dd) A description of the services to be provided under this paragraph, and a commitment by the noncustodial parent to participate in such services, that are designed to assist the noncustodial parent obtain and retain 

employment, increase earnings, and enhance 

the financial and emotional contributions to 

the well-being of the minor child. 

In order to protect custodial parents and children 

who may be at risk of domestic violence, the preceding provisions of this subclause shall not be 

construed to affect any other provision of law requiring a custodial parent to cooperate in establishing the paternity of a child or establishing or 

enforcing a support order with respect to a child, 

or entitling a custodial parent to refuse, for good 

cause, to provide such cooperation as a condition 

of assistance or benefit under any program, shall 

not be construed to require such cooperation by 

the custodial parent as a condition of participation 

of either parent in the program authorized under 

this paragraph, and shall not be construed to require a custodial parent to cooperate with or participate in any activity under this clause. The entity operating a project under this clause with 

funds provided under this paragraph shall consult 

with domestic violence prevention and intervention organizations in the development of the 

project. 

(iv) TARGETING OF HARD TO EMPLOY INDIVIDUALS

WITH CHARACTERISTICS ASSOCIATED WITH LONG-TERM

WELFARE DEPENDENCE.—An entity that operates a 

project with funds provided under this paragraph may 

expend not more than 30 percent of all funds provided 

to the project for programs that provide assistance in 

a form described in clause (i)— 

(I) to recipients of assistance under the program 

funded under this part of the State in which the 

entity is located who have characteristics associated with long-term welfare dependence (such as 

school dropout, teen pregnancy, or poor work history), including, at the option of the State, by providing assistance in such form as a condition of receiving assistance under the State program funded under this part; 

(II) to children— 

(aa) who have attained 18 years of age but 

not 25 years of age; and 

(bb) who, before attaining 18 years of age, 

were recipients of foster care maintenance 


jstallworth on DSK7TPTVN1PROD with REPORTS
40 

payments (as defined in section 475(4)) under 

part E or were in foster care under the responsibility of a State; 

(III) to recipients of assistance under the State 

program funded under this part, determined to 

have significant barriers to self-sufficiency, pursuant to criteria established by the local private industry council; or 

(IV) to custodial parents with incomes below 

100 percent of the poverty line (as defined in section 673(2) of the Omnibus Budget Reconciliation 

Act of 1981, including any revision required by 

such section, applicable to a family of the size involved). 

To the extent that the entity does not expend such 

funds in accordance with the preceding sentence, the 

entity shall expend such funds in accordance with 

clauses (ii) and (iii) and, as appropriate, clause (v). 

(v) AUTHORITY TO PROVIDE WORK-RELATED SERVICES

TO INDIVIDUALS WHO HAVE REACHED THE 5 YEAR

LIMIT.—An entity that operates a project with funds 

provided under this paragraph may use the funds to 

provide assistance in a form described in clause (i) of 

this subparagraph to, or for the benefit of, individuals 

who (but for section 408(a)(7)) would be eligible for assistance under the program funded under this part of 

the State in which the entity is located. 

(vi) RELATIONSHIP TO OTHER PROVISIONS OF THIS

PART.— 

(I) RULES GOVERNING USE OF FUNDS.—The rules 

of section 404, other than subsections (b), (f), and 

(h) of section 404, shall not apply to a grant made 

under this paragraph. 

(II) RULES GOVERNING PAYMENTS TO STATES.— 

The Secretary of Labor shall carry out the functions otherwise assigned by section 405 to the Secretary of Health and Human Services with respect 

to the grants payable under this paragraph. 

(III) ADMINISTRATION.—Section 416 shall not 

apply to the programs under this paragraph. 

(vii) PROHIBITION AGAINST USE OF GRANT FUNDS FOR

ANY OTHER FUND MATCHING REQUIREMENT.—An entity 

to which funds are provided under this paragraph 

shall not use any part of the funds, nor any part of 

State expenditures made to match the funds, to fulfill 

any obligation of any State, political subdivision, or 

private industry council to contribute funds under section 403(b) or 418 or any other provision of this Act or 

other Federal law. 

(viii) DEADLINE FOR EXPENDITURE.—An entity to 

which funds are provided under this paragraph shall 

remit to the Secretary of Labor any part of the funds 

that are not expended within 5 years after the date 

the funds are so provided. 


jstallworth on DSK7TPTVN1PROD with REPORTS
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(ix) REGULATIONS.—Within 90 days after the date of 

the enactment of this paragraph, the Secretary of 

Labor, after consultation with the Secretary of Health 

and Human Services and the Secretary of Housing 

and Urban Development, shall prescribe such regulations as may be necessary to implement this paragraph. 

(x) REPORTING REQUIREMENTS.—The Secretary of 

Labor, in consultation with the Secretary of Health 

and Human Services, States, and organizations that 

represent State or local governments, shall establish 

requirements for the collection and maintenance of financial and participant information and the reporting 

of such information by entities carrying out activities 

under this paragraph. 

(D) DEFINITIONS.— 

(i) INDIVIDUALS WITH INCOME LESS THAN THE POV- ERTY LINE.—For purposes of this paragraph, the number of individuals with an income that is less than the 

poverty line shall be determined for a fiscal year— 

(I) based on the methodology used by the Bureau of the Census to produce and publish 

intercensal poverty data for States and counties 

(or, in the case of Puerto Rico, the Virgin Islands, 

Guam, and American Samoa, other poverty data 

selected by the Secretary of Labor); and 

(II) using data for the most recent year for 

which such data is available before the beginning 

of the fiscal year. 

(ii) PRIVATE INDUSTRY COUNCIL.—As used in this 

paragraph, the term ‘‘private industry council’’ means, 

with respect to a service delivery area, the private industry council or local workforce development board 

established for the local workforce development area 

pursuant to title I of the Workforce Innovation and 

Opportunity Act, as appropriate. 

(iii) SERVICE DELIVERY AREA.—As used in this paragraph, the term ‘‘service delivery area’’ shall have the 

meaning given such term for purposes of the Job 

Training Partnership Act or. 

(E) FUNDING FOR INDIAN TRIBES.—1 percent of the 

amount specified in subparagraph (H) for fiscal year 1998 

and $15,000,000 of the amount so specified for fiscal year 

1999 shall be reserved for grants to Indian tribes under 

section 412(a)(3). 

(F) FUNDING FOR EVALUATIONS OF WELFARE-TO-WORK

PROGRAMS.—0.6 percent of the amount specified in subparagraph (H) for fiscal year 1998 and $9,000,000 of the 

amount so specified for fiscal year 1999 shall be reserved 

for use by the Secretary to carry out section 413(j). 

(G) FUNDING FOR EVALUATION OF ABSTINENCE EDU- CATION PROGRAMS.— (i) IN GENERAL.—0.2 percent of the amount specified 

in subparagraph (H) for fiscal year 1998 and 

$3,000,000 of the amount so specified for fiscal year 


jstallworth on DSK7TPTVN1PROD with REPORTS
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1999 shall be reserved for use by the Secretary to 

evaluate programs under section 510, directly or 

through grants, contracts, or interagency agreements. 

(ii) AUTHORITY TO USE FUNDS FOR EVALUATIONS OF

WELFARE-TO-WORK PROGRAMS.—Any such amount not 

required for such evaluations shall be available for use 

by the Secretary to carry out section 413(j). 

(iii) DEADLINE FOR OUTLAYS.—Outlays from funds 

used pursuant to clause (i) for evaluation of programs 

under section 510 shall not be made after fiscal year 

2005. 

(iv) INTERIM REPORT.—Not later than January 1, 

2002, the Secretary shall submit to the Congress an 

interim report on the evaluations referred to in clause 

(i). 

(H) APPROPRIATIONS.— 

(i) IN GENERAL.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there 

are appropriated for grants under this paragraph— 

(I) $1,500,000,000 for fiscal year 1998; and 

(II) $1,400,000,000 for fiscal year 1999. 

(ii) AVAILABILITY.—The amounts made available 

pursuant to clause (i) shall remain available for such 

period as is necessary to make the grants provided for 

in this paragraph. 

(I) WORKER PROTECTIONS.— (i) NONDISPLACEMENT IN WORK ACTIVITIES.— (I) GENERAL PROHIBITION.—Subject to this 

clause, an adult in a family receiving assistance 

attributable to funds provided under this paragraph may fill a vacant employment position in 

order to engage in a work activity. 

(II) PROHIBITION AGAINST VIOLATION OF CON- TRACTS.—A work activity engaged in under a program operated with funds provided under this 

paragraph shall not violate an existing contract 

for services or a collective bargaining agreement, 

and such a work activity that would violate a collective bargaining agreement shall not be undertaken without the written concurrence of the labor 

organization and employer concerned. 

(III) OTHER PROHIBITIONS.—An adult participant in a work activity engaged in under a program operated with funds provided under this 

paragraph shall not be employed or assigned— 

(aa) when any other individual is on layoff 

from the same or any substantially equivalent 

job; 

(bb) if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction in its 

workforce with the intention of filling the vacancy so created with the participant; or 

(cc) if the employer has caused an involuntary reduction to less than full time in hours 


jstallworth on DSK7TPTVN1PROD with REPORTS
43 

of any employee in the same or a substantially equivalent job. 

(ii) HEALTH AND SAFETY.—Health and safety standards established under Federal and State law otherwise applicable to working conditions of employees 

shall be equally applicable to working conditions of 

other participants engaged in a work activity under a 

program operated with funds provided under this 

paragraph. 

(iii) NONDISCRIMINATION.—In addition to the protections provided under the provisions of law specified in 

section 408(c), an individual may not be discriminated 

against by reason of gender with respect to participation in work activities engaged in under a program operated with funds provided under this paragraph. 

(iv) GRIEVANCE PROCEDURE.— 

(I) IN GENERAL.—Each State to which a grant is 

made under this paragraph shall establish and 

maintain a procedure for grievances or complaints 

from employees alleging violations of clause (i) 

and participants in work activities alleging violations of clause (i), (ii), or (iii). 

(II) HEARING.—The procedure shall include an 

opportunity for a hearing. 

(III) REMEDIES.—The procedure shall include 

remedies for violation of clause (i), (ii), or (iii), 

which may continue during the pendency of the 

procedure, and which may include— 

(aa) suspension or termination of payments 

from funds provided under this paragraph; 

(bb) prohibition of placement of a participant with an employer that has violated 

clause (i), (ii), or (iii); 

(cc) where applicable, reinstatement of an 

employee, payment of lost wages and benefits, 

and reestablishment of other relevant terms, 

conditions and privileges of employment; and 

(dd) where appropriate, other equitable relief. 

(IV) APPEALS.— 

(aa) FILING.—Not later than 30 days after a 

grievant or complainant receives an adverse 

decision under the procedure established pursuant to subclause (I), the grievant or complainant may appeal the decision to a State 

agency designated by the State which shall be 

independent of the State or local agency that 

is administering the programs operated with 

funds provided under this paragraph and the 

State agency administering, or supervising 

the administration of, the State program 

funded under this part. 

(bb) FINAL DETERMINATION.—Not later than 

120 days after the State agency designated 

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plaint made under the procedure established 

by a State pursuant to subclause (I), the State 

agency shall make a final determination on 

the appeal. 

(v) RULE OF INTERPRETATION.—This subparagraph 

shall not be construed to affect the authority of a State 

to provide or require workers’ compensation. 

(vi) NONPREEMPTION OF STATE LAW.—The provisions 

of this subparagraph shall not be construed to preempt any provision of State law that affords greater 

protections to employees or to other participants engaged in work activities under a program funded 

under this part than is afforded by such provisions of 

this subparagraph. 

(J) INFORMATION DISCLOSURE.—If a State to which a 

grant is made under section 403 establishes safeguards 

against the use or disclosure of information about applicants or recipients of assistance under the State program 

funded under this part, the safeguards shall not prevent 

the State agency administering the program from furnishing to a private industry council the names, addresses, 

telephone numbers, and identifying case number information in the State program funded under this part, of noncustodial parents residing in the service delivery area of 

the private industry council, for the purpose of identifying 

and contacting noncustodial parents regarding participation in the program under this paragraph. 

(b) CONTINGENCY FUND.— (1) ESTABLISHMENT.—There is hereby established in the 

Treasury of the United States a fund which shall be known as 

the ‘‘Contingency Fund for State Welfare Programs’’ (in this 

section referred to as the ‘‘Fund’’). 

(2) DEPOSITS INTO FUND.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are appropriated for fiscal years 2013 and 2014 such sums as are 

necessary for payment to the Fund in a total amount not to exceed $612,000,000 for each fiscal year, of which $2,000,000 

shall be reserved for carrying out the activities of the commission established by the Protect our Kids Act of 2012 to reduce 

fatalities resulting from child abuse and neglect. 

(3) GRANTS.— 

(A) PROVISIONAL PAYMENTS.—If an eligible State submits 

to the Secretary a request for funds under this paragraph 

during an eligible month, the Secretary shall, subject to 

this paragraph, pay to the State, from amounts appropriated pursuant to paragraph (2), an amount equal to the 

amount of funds so requested. 

(B) PAYMENT PRIORITY.—The Secretary shall make payments under subparagraph (A) in the order in which the 

Secretary receives requests for such payments. 

(C) LIMITATIONS.— (i) MONTHLY PAYMENT TO A STATE.—The total 

amount paid to a single State under subparagraph (A) 

during a month shall not exceed 1⁄12 of 20 percent of 

the State family assistance grant. 


jstallworth on DSK7TPTVN1PROD with REPORTS
45 

(ii) PAYMENTS TO ALL STATES.—The total amount 

paid to all States under subparagraph (A) during fiscal 

year 2011 and 2012, respectively, shall not exceed the 

total amount appropriated pursuant to paragraph (2) 

for each such fiscal year. 

(4) ELIGIBLE MONTH.—As used in paragraph (3)(A), the term 

‘‘eligible month’’ means, with respect to a State, a month in the 

2-month period that begins with any month for which the 

State is a needy State. 

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

a needy State for a month if— 

(A) the average rate of— 

(i) total unemployment in such State (seasonally adjusted) for the period consisting of the most recent 3 

months for which data for all States are published 

equals or exceeds 6.5 percent; and 

(ii) total unemployment in such State (seasonally 

adjusted) for the 3-month period equals or exceeds 110 

percent of such average rate for either (or both) of the 

corresponding 3-month periods ending in the 2 preceding calendar years; or 

(B) as determined by the Secretary of Agriculture (in the 

discretion of the Secretary of Agriculture), the monthly average number of individuals (as of the last day of each 

month) participating in the supplemental nutrition assistance program in the State in the then most recently concluded 3-month period for which data are available exceeds 

by not less than 10 percent the lesser of— 

(i) the monthly average number of individuals (as of 

the last day of each month) in the State that would 

have participated in the supplemental nutrition assistance program in the corresponding 3-month period in 

fiscal year 1994 if the amendments made by titles IV 

and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect 

throughout fiscal year 1994; or 

(ii) the monthly average number of individuals (as of 

the last day of each month) in the State that would 

have participated in the supplemental nutrition assistance program in the corresponding 3-month period in 

fiscal year 1995 if the amendments made by titles IV 

and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect 

throughout fiscal year 1995. 

(6) ANNUAL RECONCILIATION.— 

(A) IN GENERAL.—Notwithstanding paragraph (3), if the 

Secretary makes a payment to a State under this subsection in a fiscal year, then the State shall remit to the 

Secretary, within 1 year after the end of the first subsequent period of 3 consecutive months for which the State 

is not a needy State, an amount equal to the amount (if 

any) by which— 

(i) the total amount paid to the State under paragraph (3) of this subsection in the fiscal year; exceeds 

(ii) the product of— 


jstallworth on DSK7TPTVN1PROD with REPORTS
46 

(I) the Federal medical assistance percentage for 

the State (as defined in section 1905(b), as such 

section was in effect on September 30, 1995); 

(II) the State’s reimbursable expenditures for 

the fiscal year; and 

(III) 1⁄12 times the number of months during the 

fiscal year for which the Secretary made a payment to the State under such paragraph (3). 

(B) DEFINITIONS.—As used in subparagraph (A): 

(i) REIMBURSABLE EXPENDITURES.—The term ‘‘reimbursable expenditures’’ means, with respect to a State 

and a fiscal year, the amount (if any) by which— 

(I) countable State expenditures for the fiscal 

year; exceeds 

(II) historic State expenditures (as defined in 

section 409(a)(7)(B)(iii)), excluding any amount expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during 

fiscal year 1994) for fiscal year 1994. 

(ii) COUNTABLE STATE EXPENDITURES.—The term 

‘‘countable expenditures’’ means, with respect to a 

State and a fiscal year— 

(I) the qualified State expenditures (as defined 

in section 409(a)(7)(B)(i) (other than the expenditures described in subclause (I)(bb) of such section)) under the State program funded under this 

part for the fiscal year; plus 

(II) any amount paid to the State under paragraph (3) during the fiscal year that is expended 

by the State under the State program funded 

under this part. 

(C) ADJUSTMENT OF STATE REMITTANCES.— 

(i) IN GENERAL.—The amount otherwise required by 

subparagraph (A) to be remitted by a State for a fiscal 

year shall be increased by the lesser of— 

(I) the total adjustment for the fiscal year, multiplied by the adjustment percentage for the State 

for the fiscal year; or 

(II) the unadjusted net payment to the State for 

the fiscal year. 

(ii) TOTAL ADJUSTMENT.—As used in clause (i), the 

term ‘‘total adjustment’’ means— 

(I) in the case of fiscal year 1998, $2,000,000; 

(II) in the case of fiscal year 1999, $9,000,000; 

(III) in the case of fiscal year 2000, $16,000,000; 

and 

(IV) in the case of fiscal year 2001, $13,000,000. 

(iii) ADJUSTMENT PERCENTAGE.—As used in clause 

(i), the term ‘‘adjustment percentage’’ means, with respect to a State and a fiscal year— 

(I) the unadjusted net payment to the State for 

the fiscal year; divided by 

(II) the sum of the unadjusted net payments to 

all States for the fiscal year. 


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(iv) UNADJUSTED NET PAYMENT.—As used in this 

subparagraph, the term, ‘‘unadjusted net payment’’ 

means with respect to a State and a fiscal year— 

(I) the total amount paid to the State under 

paragraph (3) in the fiscal year; minus 

(II) the amount that, in the absence of this subparagraph, would be required by subparagraph 

(A) or by section 409(a)(10) to be remitted by the 

State in respect of the payment. 

(7) STATE DEFINED.—As used in this subsection, the term 

‘‘State’’ means each of the 50 States and the District of Columbia. 

(8) ANNUAL REPORTS.—The Secretary shall annually report 

to the Congress on the status of the Fund. 

* * * * * * * 

B. CHANGES IN EXISTING LAW PROPOSED BY THE BILL, AS REPORTED

In compliance with clause 3(e)(1)(B) of rule XIII of the Rules of 

the House of Representatives, changes in existing law proposed 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 italics, existing law in which no change is proposed is shown in 

roman): 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e)(1)(B) of rule XIII of the Rules of 

the House of Representatives, changes in existing law proposed by 

the bill, as reported, are shown as follows (new matter is printed 

in italics and existing law in which no change is proposed is shown 

in roman): 

SOCIAL SECURITY ACT 

* * * * * * * 

TITLE IV—GRANTS TO STATES FOR AID AND SERVICES TO 

NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES 

PART A—BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES 

* * * * * * * 

SEC. 403. GRANTS TO STATES. 

(a) GRANTS.— 

(1) FAMILY ASSISTANCE GRANT.— 

(A) IN GENERAL.—Each eligible State shall be entitled to 

receive from the Secretary, for fiscal year 2012, a grant in 

an amount equal to the State family assistance grant. 

(B) STATE FAMILY ASSISTANCE GRANT.—The State family 

assistance grant payable to a State for a fiscal year shall 

be the amount that bears the same ratio to the amount 

specified in subparagraph (C) of this paragraph (as in effect just before the enactment of the Welfare Integrity and 


jstallworth on DSK7TPTVN1PROD with REPORTS
48 

Data Improvement Act) as the amount required to be paid 

to the State under this paragraph (as so in effect) for fiscal 

year 2002 (determined without regard to any reduction 

pursuant to section 409 or 412(a)(1)) bears to the total 

amount required to be paid under this paragraph for fiscal 

year 2002 (as so determined). 

(C) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

appropriated for fiscal year 2012 $16,566,542,000 for 

grants under this paragraph. 

(2) HEALTHY MARRIAGE PROMOTION AND RESPONSIBLE FATHERHOOD GRANTS.— 

(A) IN GENERAL.— 

(i) USE OF FUNDS.—Subject to subparagraphs (B), 

(C), and (E), the Secretary may use the funds made 

available under subparagraph (D) for the purpose of 

conducting and supporting research and demonstration projects by public or private entities, and providing technical assistance to States, Indian tribes and 

tribal organizations, and such other entities as the 

Secretary may specify that are receiving a grant under 

another provision of this part. 

(ii) LIMITATIONS.—The Secretary may not award 

funds made available under this paragraph on a noncompetitive basis, and may not provide any such funds 

to an entity for the purpose of carrying out healthy 

marriage promotion activities or for the purpose of 

carrying out activities promoting responsible fatherhood unless the entity has submitted to the Secretary 

an application (or, in the case of an entity seeking 

funding to carry out healthy marriage promotion activities and activities promoting responsible fatherhood, a combined application that contains assurances 

that the entity will carry out such activities under separate programs and shall not combine any funds 

awarded to carry out either such activities) which— 

(I) describes— 

(aa) how the programs or activities proposed in the application will address, as appropriate, issues of domestic violence; and 

(bb) what the applicant will do, to the extent relevant, to ensure that participation in 

the programs or activities is voluntary, and to 

inform potential participants that their participation is voluntary; and 

(II) contains a commitment by the entity— 

(aa) to not use the funds for any other purpose; and 

(bb) to consult with experts in domestic violence or relevant community domestic violence 

coalitions in developing the programs and activities. 

(iii) HEALTHY MARRIAGE PROMOTION ACTIVITIES.—In 

clause (ii), the term ‘‘healthy marriage promotion activities’’ means the following: 


jstallworth on DSK7TPTVN1PROD with REPORTS
49 

(I) Public advertising campaigns on the value of 

marriage and the skills needed to increase marital 

stability and health. 

(II) Education in high schools on the value of 

marriage, relationship skills, and budgeting. 

(III) Marriage education, marriage skills, and 

relationship skills programs, that may include 

parenting skills, financial management, conflict 

resolution, and job and career advancement. 

(IV) Pre-marital education and marriage skills 

training for engaged couples and for couples or individuals interested in marriage. 

(V) Marriage enhancement and marriage skills 

training programs for married couples. 

(VI) Divorce reduction programs that teach relationship skills. 

(VII) Marriage mentoring programs which use 

married couples as role models and mentors in atrisk communities. 

(VIII) Programs to reduce the disincentives to 

marriage in means-tested aid programs, if offered 

in conjunction with any activity described in this 

subparagraph. 

(B) LIMITATION ON USE OF FUNDS FOR DEMONSTRATION

PROJECTS FOR COORDINATION OF PROVISION OF CHILD WEL- FARE AND TANF SERVICES TO TRIBAL FAMILIES AT RISK OF

CHILD ABUSE OR NEGLECT.— (i) IN GENERAL.—Of the amounts made available 

under subparagraph (D) for a fiscal year, the Secretary may not award more than $2,000,000 on a competitive basis to fund demonstration projects designed 

to test the effectiveness of tribal governments or tribal 

consortia in coordinating the provision to tribal families at risk of child abuse or neglect of child welfare 

services and services under tribal programs funded 

under this part. 

(ii) LIMITATION ON USE OF FUNDS.—A grant made 

pursuant to clause (i) to such a project shall not be 

used for any purpose other than— 

(I) to improve case management for families eligible for assistance from such a tribal program; 

(II) for supportive services and assistance to 

tribal children in out-of-home placements and the 

tribal families caring for such children, including 

families who adopt such children; and 

(III) for prevention services and assistance to 

tribal families at risk of child abuse and neglect. 

(iii) REPORTS.—The Secretary may require a recipient of funds awarded under this subparagraph to provide the Secretary with such information as the Secretary deems relevant to enable the Secretary to facilitate and oversee the administration of any project for 

which funds are provided under this subparagraph. 

(C) LIMITATION ON USE OF FUNDS FOR ACTIVITIES PROMOTING RESPONSIBLE FATHERHOOD.— 


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(i) IN GENERAL.—Of the amounts made available 

under subparagraph (D) for a fiscal year, the Secretary may not award more than $75,000,000 on a 

competitive basis to States, territories, Indian tribes 

and tribal organizations, and public and nonprofit 

community entities, including religious organizations, 

for activities promoting responsible fatherhood. 

(ii) ACTIVITIES PROMOTING RESPONSIBLE FATHERHOOD.—In this paragraph, the term ‘‘activities promoting responsible fatherhood’’ means the following: 

(I) Activities to promote marriage or sustain 

marriage through activities such as counseling, 

mentoring, disseminating information about the 

benefits of marriage and 2-parent involvement for 

children, enhancing relationship skills, education 

regarding how to control aggressive behavior, disseminating information on the causes of domestic 

violence and child abuse, marriage preparation 

programs, premarital counseling, marital inventories, skills-based marriage education, financial 

planning seminars, including improving a family’s 

ability to effectively manage family business affairs by means such as education, counseling, or 

mentoring on matters related to family finances, 

including household management, budgeting, 

banking, and handling of financial transactions 

and home maintenance, and divorce education and 

reduction programs, including mediation and 

counseling. 

(II) Activities to promote responsible parenting 

through activities such as counseling, mentoring, 

and mediation, disseminating information about 

good parenting practices, skills-based parenting 

education, encouraging child support payments, 

and other methods. 

(III) Activities to foster economic stability by 

helping fathers improve their economic status by 

providing activities such as work first services, job 

search, job training, subsidized employment, job 

retention, job enhancement, and encouraging education, including career-advancing education, dissemination of employment materials, coordination 

with existing employment services such as welfare-to-work programs, referrals to local employment training initiatives, and other methods. 

(IV) Activities to promote responsible fatherhood 

that are conducted through a contract with a nationally recognized, nonprofit fatherhood promotion organization, such as the development, 

promotion, and distribution of a media campaign 

to encourage the appropriate involvement of parents in the life of any child and specifically the 

issue of responsible fatherhood, and the development of a national clearinghouse to assist States 


jstallworth on DSK7TPTVN1PROD with REPORTS
51 

and communities in efforts to promote and support marriage and responsible fatherhood. 

(D) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

appropriated for fiscal year 2012 for expenditure in accordance with this paragraph— (i) $75,000,000 for awarding funds for the purpose of 

carrying out healthy marriage promotion activities; 

and 

(ii) $75,000,000 for awarding funds for the purpose 

of carrying out activities promoting responsible fatherhood. 

If the Secretary makes an award under subparagraph 

(B)(i) for fiscal year 2012, the funds for such award shall 

be taken in equal portion from the amounts appropriated 

under clauses (i) and (ii). 

(E) PREFERENCE.—In awarding funds under this paragraph for fiscal year 2011, the Secretary shall give preference to entities that were awarded funds under this 

paragraph for any prior fiscal year and that have demonstrated the ability to successfully carry out the programs 

funded under this paragraph. 

(3) SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN

CERTAIN STATES.— (A) IN GENERAL.—Each qualifying State shall, subject to 

subparagraph (F), be entitled to receive from the Secretary— 

(i) for fiscal year 1998 a grant in an amount equal 

to 2.5 percent of the total amount required to be paid 

to the State under former section 403 (as in effect during fiscal year 1994) for fiscal year 1994; and 

(ii) for each of fiscal years 1999, 2000, and 2001, a 

grant in an amount equal to the sum of— 

(I) the amount (if any) required to be paid to the 

State under this paragraph for the immediately 

preceding fiscal year; and 

(II) 2.5 percent of the sum of— 

(aa) the total amount required to be paid to 

the State under former section 403 (as in effect during fiscal year 1994) for fiscal year 

1994; and 

(bb) the amount (if any) required to be paid 

to the State under this paragraph for the fiscal year preceding the fiscal year for which 

the grant is to be made. 

(B) PRESERVATION OF GRANT WITHOUT INCREASES FOR

STATES FAILING TO REMAIN QUALIFYING STATES.—Each 

State that is not a qualifying State for a fiscal year specified in subparagraph (A)(ii) but was a qualifying State for 

a prior fiscal year shall, subject to subparagraph (F), be 

entitled to receive from the Secretary for the specified fiscal year, a grant in an amount equal to the amount required to be paid to the State under this paragraph for the 

most recent fiscal year for which the State was a qualifying State. 


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(C) QUALIFYING STATE.— (i) IN GENERAL.—For purposes of this paragraph, a 

State is a qualifying State for a fiscal year if— 

(I) the level of welfare spending per poor person 

by the State for the immediately preceding fiscal 

year is less than the national average level of 

State welfare spending per poor person for such 

preceding fiscal year; and 

(II) the population growth rate of the State (as 

determined by the Bureau of the Census) for the 

most recent fiscal year for which information is 

available exceeds the average population growth 

rate for all States (as so determined) for such 

most recent fiscal year. 

(ii) STATE MUST QUALIFY IN FISCAL YEAR 1998.—Notwithstanding clause (i), a State shall not be a qualifying State for any fiscal year after 1998 by reason of 

clause (i) if the State is not a qualifying State for fiscal 

year 1998 by reason of clause (i). 

(iii) CERTAIN STATES DEEMED QUALIFYING STATES.— 

For purposes of this paragraph, a State is deemed to 

be a qualifying State for fiscal years 1998, 1999, 2000, 

and 2001 if— 

(I) the level of welfare spending per poor person 

by the State for fiscal year 1994 is less than 35 

percent of the national average level of State welfare spending per poor person for fiscal year 1994; 

or 

(II) the population of the State increased by 

more than 10 percent from April 1, 1990 to July 

1, 1994, according to the population estimates in 

publication CB94–204 of the Bureau of the Census. 

(D) DEFINITIONS.—As used in this paragraph: 

(i) LEVEL OF WELFARE SPENDING PER POOR PER- SON.—The term ‘‘level of State welfare spending per 

poor person’’ means, with respect to a State and a fiscal year— 

(I) the sum of— 

(aa) the total amount required to be paid to 

the State under former section 403 (as in effect during fiscal year 1994) for fiscal year 

1994; and 

(bb) the amount (if any) paid to the State 

under this paragraph for the immediately preceding fiscal year; divided by 

(II) the number of individuals, according to the 

1990 decennial census, who were residents of the 

State and whose income was below the poverty 

line. 

(ii) NATIONAL AVERAGE LEVEL OF STATE WELFARE

SPENDING PER POOR PERSON.—The term ‘‘national average level of State welfare spending per poor person’’ 

means, with respect to a fiscal year, an amount equal 

to— 


jstallworth on DSK7TPTVN1PROD with REPORTS
53 

(I) the total amount required to be paid to the 

States under former section 403 (as in effect during fiscal year 1994) for fiscal year 1994; divided 

by 

(II) the number of individuals, according to the 

1990 decennial census, who were residents of any 

State and whose income was below the poverty 

line. 

(iii) STATE.—The term ‘‘State’’ means each of the 50 

States of the United States and the District of Columbia. 

(E) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

appropriated for fiscal years 1998, 1999, 2000, and 2001 

such sums as are necessary for grants under this paragraph, in a total amount not to exceed $800,000,000. 

(F) GRANTS REDUCED PRO RATA IF INSUFFICIENT APPRO- PRIATIONS.—If the amount appropriated pursuant to this 

paragraph for a fiscal year (or portion of a fiscal year) is 

less than the total amount of payments otherwise required 

to be made under this paragraph for the fiscal year (or 

portion of the fiscal year), then the amount otherwise payable to any State for the fiscal year (or portion of the fiscal 

year) under this paragraph shall be reduced by a percentage equal to the amount so appropriated divided by such 

total amount. 

(G) BUDGET SCORING.—Notwithstanding section 

257(b)(2) of the Balanced Budget and Emergency Deficit 

Control Act of 1985, the baseline shall assume that no 

grant shall be made under this paragraph after fiscal year 

2001. 

(H) REAUTHORIZATION.—Notwithstanding any other provision of this paragraph— 

(i) any State that was a qualifying State under this 

paragraph for fiscal year 2001 or any prior fiscal year 

shall be entitled to receive from the Secretary for each 

of fiscal years 2002 and 2003 a grant in an amount 

equal to the amount required to be paid to the State 

under this paragraph for the most recent fiscal year in 

which the State was a qualifying State; 

(ii) subparagraph (G) shall be applied as if ‘‘fiscal 

year 2011’’ were substituted for ‘‘fiscal year 2001’’; 

(iii) out of any money in the Treasury of the United 

States not otherwise appropriated, there are appropriated for each of fiscal years 2002 and 2003 such 

sums as are necessary for grants under this subparagraph. 

(4) BONUS TO REWARD HIGH PERFORMANCE STATES.— 

(A) IN GENERAL.—The Secretary shall make a grant pursuant to this paragraph to each State for each bonus year 

for which the State is a high performing State. 

(B) AMOUNT OF GRANT.— (i) IN GENERAL.—Subject to clause (ii) of this subparagraph, the Secretary shall determine the amount 

of the grant payable under this paragraph to a high 


jstallworth on DSK7TPTVN1PROD with REPORTS
54 

performing State for a bonus year, which shall be 

based on the score assigned to the State under subparagraph (D)(i) for the fiscal year that immediately 

precedes the bonus year. 

(ii) LIMITATION.—The amount payable to a State 

under this paragraph for a bonus year shall not exceed 

5 percent of the State family assistance grant. 

(C) FORMULA FOR MEASURING STATE PERFORMANCE.—Not 

later than 1 year after the date of the enactment of the 

Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the Secretary, in consultation with the 

National Governors’ Association and the American Public 

Welfare Association, shall develop a formula for measuring 

State performance in operating the State program funded 

under this part so as to achieve the goals set forth in section 401(a). 

(D) SCORING OF STATE PERFORMANCE; SETTING OF PER- FORMANCE THRESHOLDS.—For each bonus year, the Secretary shall— 

(i) use the formula developed under subparagraph 

(C) to assign a score to each eligible State for the fiscal 

year that immediately precedes the bonus year; and 

(ii) prescribe a performance threshold in such a 

manner so as to ensure that— 

(I) the average annual total amount of grants to 

be made under this paragraph for each bonus year 

equals $200,000,000; and 

(II) the total amount of grants to be made under 

this paragraph for all bonus years equals 

$1,000,000,000. 

(E) DEFINITIONS.—As used in this paragraph: 

(i) BONUS YEAR.—The term ‘‘bonus year’’ means fiscal years 1999, 2000, 2001, 2002, and 2003. 

(ii) HIGH PERFORMING STATE.—The term ‘‘high performing State’’ means, with respect to a bonus year, 

an eligible State whose score assigned pursuant to 

subparagraph (D)(i) for the fiscal year immediately 

preceding the bonus year equals or exceeds the performance threshold prescribed under subparagraph 

(D)(ii) for such preceding fiscal year. 

(F) APPROPRIATION.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are 

appropriated for fiscal years 1999 through 2003 

$1,000,000,000 for grants under this paragraph. 

(5) WELFARE-TO-WORK GRANTS.— 

(A) FORMULA GRANTS.— 

(i) ENTITLEMENT.—A State shall be entitled to receive from the Secretary of Labor a grant for each fiscal year specified in subparagraph (H) of this paragraph for which the State is a welfare-to-work State, 

in an amount that does not exceed the lesser of— 

(I) 2 times the total of the expenditures by the 

State (excluding qualified State expenditures (as 

defined in section 409(a)(7)(B)(i)) and any expenditure described in subclause (I), (II), or (IV) of secVerDate Sep 11 2014 05:25 Jun 15, 2016 Jkt 059006 PO 00000 Frm 00054 Fmt 6659 Sfmt 6601 E:\HR\OC\HR616.XXX HR616

jstallworth on DSK7TPTVN1PROD with REPORTS
55 

tion 409(a)(7)(B)(iv)) during the period permitted 

under subparagraph (C)(vii) of this paragraph for 

the expenditure of funds under the grant for activities described in subparagraph (C)(i) of this 

paragraph; or 

(II) the allotment of the State under clause (iii) 

of this subparagraph for the fiscal year. 

(ii) WELFARE-TO-WORK STATE.—A State shall be considered a welfare-to-work State for a fiscal year for 

purposes of this paragraph if the Secretary of Labor 

determines that the State meets the following requirements: 

(I) The State has submitted to the Secretary of 

Labor and the Secretary of Health and Human 

Services (in the form of an addendum to the State 

plan submitted under section 402) a plan which— 

(aa) describes how, consistent with this subparagraph, the State will use any funds provided under this subparagraph during the fiscal year; 

(bb) specifies the formula to be used pursuant to clause (vi) to distribute funds in the 

State, and describes the process by which the 

formula was developed; 

(cc) contains evidence that the plan was developed in consultation and coordination with 

appropriate entitites in sub-State areas; 

(dd) contains assurances by the Governor of 

the State that the private industry council 

(and any alternate agency designated by the 

Governor under item (ee)) for a service delivery area in the State will coordinate the expenditure of any funds provided under this 

subparagraph for the benefit of the service delivery area with the expenditure of the funds 

provided to the State under section 403(a)(1); 

(ee) if the Governor of the State desires to 

have an agency other than a private industry 

council administer the funds provided under 

this subparagraph for the benefit of 1 or more 

service delivery areas in the State, contains 

an application to the Secretary of Labor for a 

waiver of clause (vii)(I) with respect to the 

area or areas in order to permit an alternate 

agency designated by the Governor to so administer the funds; and 

(ff) describes how the State will ensure that 

a private industry council to which information is disclosed pursuant to section 

403(a)(5)(K) or 454A(f)(5) has procedures for 

safeguarding the information and for ensuring 

that the information is used solely for the 

purpose described in that section. 

(II) The State has provided to the Secretary of 

Labor an estimate of the amount that the State 


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56 

intends to expend during the period permitted 

under subparagraph (C)(vii) of this paragraph for 

the expenditure of funds under the grant (excluding expenditures described in section 

409(a)(7)(B)(iv) (other than subclause (III) thereof)) pursuant to this paragraph. 

(III) The State has agreed to negotiate in good 

faith with the Secretary of Health and Human 

Services with respect to the substance and funding of any evaluation under section 413(j), and to 

cooperate with the conduct of any such evaluation. 

(IV) The State is an eligible State for the fiscal 

year. 

(V) The State certifies that qualified State expenditures (within the meaning of section 

409(a)(7)) for the fiscal year will be not less than 

the applicable percentage of historic State expenditures (within the meaning of section 409(a)(7)) 

with respect to the fiscal year. 

(iii) ALLOTMENTS TO WELFARE-TO-WORK STATES.— 

(I) IN GENERAL.—Subject to this clause, the allotment of a welfare-to-work State for a fiscal year 

shall be the available amount for the fiscal year, 

multiplied by the State percentage for the fiscal 

year. 

(II) MINIMUM ALLOTMENT.—The allotment of a 

welfare-to-work State (other than Guam, the Virgin Islands, or American Samoa) for a fiscal year 

shall not be less than 0.25 percent of the available 

amount for the fiscal year. 

(III) PRO RATA REDUCTION.—Subject to subclause (II), the Secretary of Labor shall make pro 

rata reductions in the allotments to States under 

this clause for a fiscal year as necessary to ensure 

that the total of the allotments does not exceed 

the available amount for the fiscal year. 

(iv) AVAILABLE AMOUNT.—As used in this subparagraph, the term ‘‘available amount’’ means, for a fiscal 

year, the sum of— 

(I) 75 percent of the sum of— 

(aa) the amount specified in subparagraph 

(H) for the fiscal year, minus the total of the 

amounts reserved pursuant to subparagraphs 

(E), (F), and (G) for the fiscal year; and 

(bb) any amount reserved pursuant to subparagraph (E) for the immediately preceding 

fiscal year that has not been obligated; and 

(II) any available amount for the immediately 

preceding fiscal year that has not been obligated 

by a State, other than funds reserved by the State 

for distribution under clause (vi)(III) and funds 

distributed pursuant to clause (vi)(I) in any State 

in which the service delivery area is the State. 


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57 

(v) STATE PERCENTAGE.—As used in clause (iii), the 

term ‘‘State percentage’’ means, with respect to a fiscal 

year, 1⁄2 of the sum of— 

(I) the percentage represented by the number of 

individuals in the State whose income is less than 

the poverty line divided by the number of such individuals in the United States; and 

(II) the percentage represented by the number 

of adults who are recipients of assistance under 

the State program funded under this part divided 

by the number of adults in the United States who 

are recipients of assistance under any State program funded under this part. 

(vi) PROCEDURE FOR DISTRIBUTION OF FUNDS WITHIN

STATES.— 

(I) ALLOCATION FORMULA.—A State to which a 

grant is made under this subparagraph shall devise a formula for allocating not less than 85 percent of the amount of the grant among the service 

delivery areas in the State, which— 

(aa) determines the amount to be allocated 

for the benefit of a service delivery area in 

proportion to the number (if any) by which 

the population of the area with an income 

that is less than the poverty line exceeds 7.5 

percent of the total population of the area, relative to such number for all such areas in the 

State with such an excess, and accords a 

weight of not less than 50 percent to this factor; 

(bb) may determine the amount to be allocated for the benefit of such an area in proportion to the number of adults residing in 

the area who have been recipients of assistance under the State program funded under 

this part (whether in effect before or after the 

amendments made by section 103(a) of the 

Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied 

to the State) for at least 30 months (whether 

or not consecutive) relative to the number of 

such adults residing in the State; and 

(cc) may determine the amount to be allocated for the benefit of such an area in proportion to the number of unemployed individuals residing in the area relative to the number of such individuals residing in the State. 

(II) DISTRIBUTION OF FUNDS.— 

(aa) IN GENERAL.—If the amount allocated 

by the formula to a service delivery area is at 

least $100,000, the State shall distribute the 

amount to the entity administering the grant 

in the area. 

(bb) SPECIAL RULE.—If the amount allocated 

by the formula to a service delivery area is 


jstallworth on DSK7TPTVN1PROD with REPORTS
58 

less than $100,000, the sum shall be available 

for distribution in the State under subclause 

(III) during the fiscal year. 

(III) PROJECTS TO HELP LONG-TERM RECIPIENTS

OF ASSISTANCE ENTER UNSUBSIDIZED JOBS.—The 

Governor of a State to which a grant is made 

under this subparagraph may distribute not more 

than 15 percent of the grant funds (plus any 

amount required to be distributed under this subclause by reason of subclause (II)(bb)) to projects 

that appear likely to help long-term recipients of 

assistance under the State program funded under 

this part (whether in effect before or after the 

amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the State) 

enter unsubsidized employment. 

(vii) ADMINISTRATION.— (I) PRIVATE INDUSTRY COUNCILS.—The private 

industry council for a service delivery area in a 

State shall have sole authority, in coordination 

with the chief elected official (as defined in section 

3 of the Workforce Innovation and Opportunity 

Act) of the area, to expend the amounts distributed under clause (vi)(II)(aa) for the benefit of the 

service delivery area, in accordance with the assurances described in clause (ii)(I)(dd) provided by 

the Governor of the State. 

(II) ENFORCEMENT OF COORDINATION OF EXPENDITURES WITH OTHER EXPENDITURES UNDER THIS

PART.—Notwithstanding subclause (I) of this 

clause, on a determination by the Governor of a 

State that a private industry council (or an alternate agency described in clause (ii)(I)(dd)) has 

used funds provided under this subparagraph in a 

manner inconsistent with the assurances described in clause (ii)(I)(dd)— 

(aa) the private industry council (or such alternate agency) shall remit the funds to the 

Governor; and 

(bb) the Governor shall apply to the Secretary of Labor for a waiver of subclause (I) of 

this clause with respect to the service delivery 

area or areas involved in order to permit an 

alternate agency designated by the Governor 

to administer the funds in accordance with 

the assurances. 

(III) AUTHORITY TO PERMIT USE OF ALTERNATE

ADMINISTERING AGENCY.—The Secretary of Labor 

shall approve an application submitted under 

clause (ii)(I)(ee) or subclause (II)(bb) of this clause 

to waive subclause (I) of this clause with respect 

to 1 or more service delivery areas if the Secretary 

determines that the alternate agency designated 

in the application would improve the effectiveness 


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59 

or efficiency of the administration of amounts distributed under clause (vi)(II)(aa) for the benefit of 

the area or areas. 

(viii) DATA TO BE USED IN DETERMINING THE NUMBER

OF ADULT TANF RECIPIENTS.—For purposes of this subparagraph, the number of adult recipients of assistance under a State program funded under this part for 

a fiscal year shall be determined using data for the 

most recent 12-month period for which such data is 

available before the beginning of the fiscal year. 

(ix) REVERSION OF UNALLOTTED FORMULA FUNDS.—If 

at the end of any fiscal year any funds available under 

this subparagraph have not been allotted due to a determination by the Secretary that any State has not 

met the requirements of clause (ii), such funds shall be 

transferred to the General Fund of the Treasury of the 

United States. 

(B) COMPETITIVE GRANTS.— 

(i) IN GENERAL.—The Secretary of Labor shall award 

grants in accordance with this subparagraph, in fiscal 

years 1998 and 1999, for projects proposed by eligible 

applicants, based on the following: 

(I) The effectiveness of the proposal in— 

(aa) expanding the base of knowledge about 

programs aimed at moving recipients of assistance under State programs funded under 

this part who are least job ready into unsubsidized employment. 

(bb) moving recipients of assistance under 

State programs funded under this part who 

are least job ready into unsubsidized employment; and 

(cc) moving recipients of assistance under 

State programs funded under this part who 

are least job ready into unsubsidized employment, even in labor markets that have a 

shortage of low-skill jobs. 

(II) At the discretion of the Secretary of Labor, 

any of the following: 

(aa) The history of success of the applicant 

in moving individuals with multiple barriers 

into work. 

(bb) Evidence of the applicant’s ability to leverage private, State, and local resources. 

(cc) Use by the applicant of State and local 

resources beyond those required by subparagraph (A). 

(dd) Plans of the applicant to coordinate 

with other organizations at the local and 

State level. 

(ee) Use by the applicant of current or 

former recipients of assistance under a State 

program funded under this part as mentors, 

case managers, or service providers. 


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(ii) ELIGIBLE APPLICANTS.—As used in clause (i), the 

term ‘‘eligible applicant’’ means a private industry 

council for a service delivery area in a State, a political subdivision of a State, or a private entity applying 

in conjunction with the private industry council for 

such a service delivery area or with such a political 

subdivision, that submits a proposal developed in consultation with the Governor of the State. 

(iii) DETERMINATION OF GRANT AMOUNT.—In determining the amount of a grant to be made under this 

subparagraph for a project proposed by an applicant, 

the Secretary of Labor shall provide the applicant with 

an amount sufficient to ensure that the project has a 

reasonable opportunity to be successful, taking into account the number of long-term recipients of assistance 

under a State program funded under this part, the 

level of unemployment, the job opportunities and job 

growth, the poverty rate, and such other factors as the 

Secretary of Labor deems appropriate, in the area to 

be served by the project. 

(iv) CONSIDERATION OF NEEDS OF RURAL AREAS AND

CITIES WITH LARGE CONCENTRATIONS OF POVERTY.—In 

making grants under this subparagraph, the Secretary 

of Labor shall consider the needs of rural areas and 

cities with large concentrations of residents with an 

income that is less than the poverty line. 

(v) FUNDING.—For grants under this subparagraph 

for each fiscal year specified in subparagraph (H), 

there shall be available to the Secretary of Labor an 

amount equal to the sum of— 

(I) 25 percent of the sum of— 

(aa) the amount specified in subparagraph 

(H) for the fiscal year, minus the total of the 

amounts reserved pursuant to subparagraphs 

(E), (F), and (G) for the fiscal year; and 

(bb) any amount reserved pursuant to subparagraph (E) for the immediately preceding 

fiscal year that has not been obligated; and 

(II) any amount available for grants under this 

subparagraph for the immediately preceding fiscal 

year that has not been obligated. 

(C) LIMITATIONS ON USE OF FUNDS.— 

(i) ALLOWABLE ACTIVITIES.—An entity to which 

funds are provided under this paragraph shall use the 

funds to move individuals into and keep individuals in 

lasting unsubsidized employment by means of any of 

the following: 

(I) The conduct and administration of community service or work experience programs. 

(II) Job creation through public or private sector 

employment wage subsidies. 

(III) On-the-job training. 

(IV) Contracts with public or private providers 

of readiness, placement, and post-employment 

services, or if the entity is not a private industry 


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61 

council or workforce investment board, the direct 

provision of such services. 

(V) Job vouchers for placement, readiness, and 

postemployment services. 

(VI) Job retention or support services if such 

services are not otherwise available. 

(VII) Not more than 6 months of vocational educational or job training. 

Contracts or vouchers for job placement services supported by such funds must require that at least 1⁄2 of 

the payment occur after an eligible individual placed 

into the workforce has been in the workforce for 6 

months. 

(ii) GENERAL ELIGIBILITY.—An entity that operates a 

project with funds provided under this paragraph may 

expend funds provided to the project for the benefit of 

recipients of assistance under the program funded 

under this part of the State in which the entity is located who— 

(I) has received assistance under the State program funded under this part (whether in effect before or after the amendments made by section 103 

of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first apply to the 

State) for at least 30 months (whether or not consecutive); or 

(II) within 12 months, will become ineligible for 

assistance under the State program funded under 

this part by reason of a durational limit on such 

assistance, without regard to any exemption provided pursuant to section 408(a)(7)(C) that may 

apply to the individual. 

(iii) NONCUSTODIAL PARENTS.—An entity that operates a project with funds provided under this paragraph may use the funds to provide services in a form 

described in clause (i) to noncustodial parents with respect to whom the requirements of the following subclauses are met: 

(I) The noncustodial parent is unemployed, underemployed, or having difficulty in paying child 

support obligations. 

(II) At least 1 of the following applies to a minor 

child of the noncustodial parent (with preference 

in the determination of the noncustodial parents 

to be provided services under this paragraph to be 

provided by the entity to those noncustodial parents with minor children who meet, or who have 

custodial parents who meet, the requirements of 

item (aa)): 

(aa) The minor child or the custodial parent 

of the minor child meets the requirements of 

subclause (I) or (II) of clause (ii). 

(bb) The minor child is eligible for, or is receiving, benefits under the program funded 

under this part. 


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(cc) The minor child received benefits under 

the program funded under this part in the 12- 

month period preceding the date of the determination but no longer receives such benefits. 

(dd) The minor child is eligible for, or is receiving, assistance under the Food and Nutrition Act of 2008, benefits under the supplemental security income program under title 

XVI of this Act, medical assistance under title 

XIX of this Act, or child health assistance 

under title XXI of this Act. 

(III) In the case of a noncustodial parent who 

becomes enrolled in the project on or after the 

date of the enactment of this clause, the noncustodial parent is in compliance with the terms of an 

oral or written personal responsibility contract entered into among the noncustodial parent, the entity, and (unless the entity demonstrates to the 

Secretary that the entity is not capable of coordinating with such agency) the agency responsible 

for administering the State plan under part D, 

which was developed taking into account the employment and child support status of the noncustodial parent, which was entered into not later 

than 30 (or, at the option of the entity, not later 

than 90) days after the noncustodial parent was 

enrolled in the project, and which, at a minimum, 

includes the following: 

(aa) A commitment by the noncustodial parent to cooperate, at the earliest opportunity, 

in the establishment of the paternity of the 

minor child, through voluntary acknowledgement or other procedures, and in the establishment of a child support order. 

(bb) A commitment by the noncustodial parent to cooperate in the payment of child support for the minor child, which may include a 

modification of an existing support order to 

take into account the ability of the noncustodial parent to pay such support and the participation of such parent in the project. 

(cc) A commitment by the noncustodial parent to participate in employment or related 

activities that will enable the noncustodial 

parent to make regular child support payments, and if the noncustodial parent has not 

attained 20 years of age, such related activities may include completion of high school, a 

general equivalency degree, or other education directly related to employment. 

(dd) A description of the services to be provided under this paragraph, and a commitment by the noncustodial parent to participate in such services, that are designed to assist the noncustodial parent obtain and retain 


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employment, increase earnings, and enhance 

the financial and emotional contributions to 

the well-being of the minor child. 

In order to protect custodial parents and children 

who may be at risk of domestic violence, the preceding provisions of this subclause shall not be 

construed to affect any other provision of law requiring a custodial parent to cooperate in establishing the paternity of a child or establishing or 

enforcing a support order with respect to a child, 

or entitling a custodial parent to refuse, for good 

cause, to provide such cooperation as a condition 

of assistance or benefit under any program, shall 

not be construed to require such cooperation by 

the custodial parent as a condition of participation 

of either parent in the program authorized under 

this paragraph, and shall not be construed to require a custodial parent to cooperate with or participate in any activity under this clause. The entity operating a project under this clause with 

funds provided under this paragraph shall consult 

with domestic violence prevention and intervention organizations in the development of the 

project. 

(iv) TARGETING OF HARD TO EMPLOY INDIVIDUALS

WITH CHARACTERISTICS ASSOCIATED WITH LONG-TERM

WELFARE DEPENDENCE.—An entity that operates a 

project with funds provided under this paragraph may 

expend not more than 30 percent of all funds provided 

to the project for programs that provide assistance in 

a form described in clause (i)— 

(I) to recipients of assistance under the program 

funded under this part of the State in which the 

entity is located who have characteristics associated with long-term welfare dependence (such as 

school dropout, teen pregnancy, or poor work history), including, at the option of the State, by providing assistance in such form as a condition of receiving assistance under the State program funded under this part; 

(II) to children— 

(aa) who have attained 18 years of age but 

not 25 years of age; and 

(bb) who, before attaining 18 years of age, 

were recipients of foster care maintenance 

payments (as defined in section 475(4)) under 

part E or were in foster care under the responsibility of a State; 

(III) to recipients of assistance under the State 

program funded under this part, determined to 

have significant barriers to self-sufficiency, pursuant to criteria established by the local private industry council; or 

(IV) to custodial parents with incomes below 

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tion 673(2) of the Omnibus Budget Reconciliation 

Act of 1981, including any revision required by 

such section, applicable to a family of the size involved). 

To the extent that the entity does not expend such 

funds in accordance with the preceding sentence, the 

entity shall expend such funds in accordance with 

clauses (ii) and (iii) and, as appropriate, clause (v). 

(v) AUTHORITY TO PROVIDE WORK-RELATED SERVICES

TO INDIVIDUALS WHO HAVE REACHED THE 5 YEAR

LIMIT.—An entity that operates a project with funds 

provided under this paragraph may use the funds to 

provide assistance in a form described in clause (i) of 

this subparagraph to, or for the benefit of, individuals 

who (but for section 408(a)(7)) would be eligible for assistance under the program funded under this part of 

the State in which the entity is located. 

(vi) RELATIONSHIP TO OTHER PROVISIONS OF THIS

PART.— 

(I) RULES GOVERNING USE OF FUNDS.—The rules 

of section 404, other than subsections (b), (f), and 

(h) of section 404, shall not apply to a grant made 

under this paragraph. 

(II) RULES GOVERNING PAYMENTS TO STATES.— The Secretary of Labor shall carry out the functions otherwise assigned by section 405 to the Secretary of Health and Human Services with respect 

to the grants payable under this paragraph. 

(III) ADMINISTRATION.—Section 416 shall not 

apply to the programs under this paragraph. 

(vii) PROHIBITION AGAINST USE OF GRANT FUNDS FOR

ANY OTHER FUND MATCHING REQUIREMENT.—An entity 

to which funds are provided under this paragraph 

shall not use any part of the funds, nor any part of 

State expenditures made to match the funds, to fulfill 

any obligation of any State, political subdivision, or 

private industry council to contribute funds under section 403(b) or 418 or any other provision of this Act or 

other Federal law. 

(viii) DEADLINE FOR EXPENDITURE.—An entity to 

which funds are provided under this paragraph shall 

remit to the Secretary of Labor any part of the funds 

that are not expended within 5 years after the date 

the funds are so provided. 

(ix) REGULATIONS.—Within 90 days after the date of 

the enactment of this paragraph, the Secretary of 

Labor, after consultation with the Secretary of Health 

and Human Services and the Secretary of Housing 

and Urban Development, shall prescribe such regulations as may be necessary to implement this paragraph. 

(x) REPORTING REQUIREMENTS.—The Secretary of 

Labor, in consultation with the Secretary of Health 

and Human Services, States, and organizations that 

represent State or local governments, shall establish 


jstallworth on DSK7TPTVN1PROD with REPORTS
65 

requirements for the collection and maintenance of financial and participant information and the reporting 

of such information by entities carrying out activities 

under this paragraph. 

(D) DEFINITIONS.— (i) INDIVIDUALS WITH INCOME LESS THAN THE POV- ERTY LINE.—For purposes of this paragraph, the number of individuals with an income that is less than the 

poverty line shall be determined for a fiscal year— 

(I) based on the methodology used by the Bureau of the Census to produce and publish 

intercensal poverty data for States and counties 

(or, in the case of Puerto Rico, the Virgin Islands, 

Guam, and American Samoa, other poverty data 

selected by the Secretary of Labor); and 

(II) using data for the most recent year for 

which such data is available before the beginning 

of the fiscal year. 

(ii) PRIVATE INDUSTRY COUNCIL.—As used in this 

paragraph, the term ‘‘private industry council’’ means, 

with respect to a service delivery area, the private industry council or local workforce development board 

established for the local workforce development area 

pursuant to title I of the Workforce Innovation and 

Opportunity Act, as appropriate. 

(iii) SERVICE DELIVERY AREA.—As used in this paragraph, the term ‘‘service delivery area’’ shall have the 

meaning given such term for purposes of the Job 

Training Partnership Act or. 

(E) FUNDING FOR INDIAN TRIBES.—1 percent of the 

amount specified in subparagraph (H) for fiscal year 1998 

and $15,000,000 of the amount so specified for fiscal year 

1999 shall be reserved for grants to Indian tribes under 

section 412(a)(3). 

(F) FUNDING FOR EVALUATIONS OF WELFARE-TO-WORK

PROGRAMS.—0.6 percent of the amount specified in sub- paragraph (H) for fiscal year 1998 and $9,000,000 of the 

amount so specified for fiscal year 1999 shall be reserved 

for use by the Secretary to carry out section 413(j). 

(G) FUNDING FOR EVALUATION OF ABSTINENCE EDUCATION PROGRAMS.— 

(i) IN GENERAL.—0.2 percent of the amount specified 

in subparagraph (H) for fiscal year 1998 and 

$3,000,000 of the amount so specified for fiscal year 

1999 shall be reserved for use by the Secretary to 

evaluate programs under section 510, directly or 

through grants, contracts, or interagency agreements. 

(ii) AUTHORITY TO USE FUNDS FOR EVALUATIONS OF

WELFARE-TO-WORK PROGRAMS.—Any such amount not 

required for such evaluations shall be available for use 

by the Secretary to carry out section 413(j). 

(iii) DEADLINE FOR OUTLAYS.—Outlays from funds 

used pursuant to clause (i) for evaluation of programs 

under section 510 shall not be made after fiscal year 

2005. 


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(iv) INTERIM REPORT.—Not later than January 1, 

2002, the Secretary shall submit to the Congress an 

interim report on the evaluations referred to in clause 

(i). 

(H) APPROPRIATIONS.— (i) IN GENERAL.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there 

are appropriated for grants under this paragraph— (I) $1,500,000,000 for fiscal year 1998; and 

(II) $1,400,000,000 for fiscal year 1999. 

(ii) AVAILABILITY.—The amounts made available 

pursuant to clause (i) shall remain available for such 

period as is necessary to make the grants provided for 

in this paragraph. 

(I) WORKER PROTECTIONS.— 

(i) NONDISPLACEMENT IN WORK ACTIVITIES.— 

(I) GENERAL PROHIBITION.—Subject to this 

clause, an adult in a family receiving assistance 

attributable to funds provided under this paragraph may fill a vacant employment position in 

order to engage in a work activity. 

(II) PROHIBITION AGAINST VIOLATION OF CON- TRACTS.—A work activity engaged in under a program operated with funds provided under this 

paragraph shall not violate an existing contract 

for services or a collective bargaining agreement, 

and such a work activity that would violate a collective bargaining agreement shall not be undertaken without the written concurrence of the labor 

organization and employer concerned. 

(III) OTHER PROHIBITIONS.—An adult participant in a work activity engaged in under a program operated with funds provided under this 

paragraph shall not be employed or assigned— 

(aa) when any other individual is on layoff 

from the same or any substantially equivalent 

job; 

(bb) if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction in its 

workforce with the intention of filling the vacancy so created with the participant; or 

(cc) if the employer has caused an involuntary reduction to less than full time in hours 

of any employee in the same or a substantially equivalent job. 

(ii) HEALTH AND SAFETY.—Health and safety standards established under Federal and State law otherwise applicable to working conditions of employees 

shall be equally applicable to working conditions of 

other participants engaged in a work activity under a 

program operated with funds provided under this 

paragraph. 

(iii) NONDISCRIMINATION.—In addition to the protections provided under the provisions of law specified in 


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section 408(c), an individual may not be discriminated 

against by reason of gender with respect to participation in work activities engaged in under a program operated with funds provided under this paragraph. 

(iv) GRIEVANCE PROCEDURE.— (I) IN GENERAL.—Each State to which a grant is 

made under this paragraph shall establish and 

maintain a procedure for grievances or complaints 

from employees alleging violations of clause (i) 

and participants in work activities alleging violations of clause (i), (ii), or (iii). 

(II) HEARING.—The procedure shall include an 

opportunity for a hearing. 

(III) REMEDIES.—The procedure shall include 

remedies for violation of clause (i), (ii), or (iii), 

which may continue during the pendency of the 

procedure, and which may include— 

(aa) suspension or termination of payments 

from funds provided under this paragraph; 

(bb) prohibition of placement of a participant with an employer that has violated 

clause (i), (ii), or (iii); 

(cc) where applicable, reinstatement of an 

employee, payment of lost wages and benefits, 

and reestablishment of other relevant terms, 

conditions and privileges of employment; and 

(dd) where appropriate, other equitable relief. 

(IV) APPEALS.— 

(aa) FILING.—Not later than 30 days after a 

grievant or complainant receives an adverse 

decision under the procedure established pursuant to subclause (I), the grievant or complainant may appeal the decision to a State 

agency designated by the State which shall be 

independent of the State or local agency that 

is administering the programs operated with 

funds provided under this paragraph and the 

State agency administering, or supervising 

the administration of, the State program 

funded under this part. 

(bb) FINAL DETERMINATION.—Not later than 

120 days after the State agency designated 

under item (aa) receives a grievance or complaint made under the procedure established 

by a State pursuant to subclause (I), the State 

agency shall make a final determination on 

the appeal. 

(v) RULE OF INTERPRETATION.—This subparagraph 

shall not be construed to affect the authority of a State 

to provide or require workers’ compensation. 

(vi) NONPREEMPTION OF STATE LAW.—The provisions 

of this subparagraph shall not be construed to preempt any provision of State law that affords greater 

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gaged in work activities under a program funded 

under this part than is afforded by such provisions of 

this subparagraph. 

(J) INFORMATION DISCLOSURE.—If a State to which a 

grant is made under section 403 establishes safeguards 

against the use or disclosure of information about applicants or recipients of assistance under the State program 

funded under this part, the safeguards shall not prevent 

the State agency administering the program from furnishing to a private industry council the names, addresses, 

telephone numbers, and identifying case number information in the State program funded under this part, of noncustodial parents residing in the service delivery area of 

the private industry council, for the purpose of identifying 

and contacting noncustodial parents regarding participation in the program under this paragraph. 

(b) CONTINGENCY FUND.— 

(1) ESTABLISHMENT.—There is hereby established in the 

Treasury of the United States a fund which shall be known as 

the ‘‘Contingency Fund for State Welfare Programs’’ (in this 

section referred to as the ‘‘Fund’’). 

(2) DEPOSITS INTO FUND.—Out of any money in the Treasury 

of the United States not otherwise appropriated, there are appropriated for fiscal years 2013 and 2014 such sums as are 

necessary for payment to the Fund in a total amount not to exceed $612,000,000 for each fiscal year, of which $2,000,000 

shall be reserved for carrying out the activities of the commission established by the Protect our Kids Act of 2012 to reduce 

fatalities resulting from child abuse and neglect. 

(3) GRANTS.— 

(A) PROVISIONAL PAYMENTS.—If an eligible State submits 

to the Secretary a request for funds under this paragraph 

during an eligible month, the Secretary shall, subject to 

this paragraph, pay to the State, from amounts appropriated pursuant to paragraph (2), an amount equal to the 

amount of funds so requested. 

(B) PAYMENT PRIORITY.—The Secretary shall make payments under subparagraph (A) in the order in which the 

Secretary receives requests for such payments. 

(C) LIMITATIONS.— 

(i) MONTHLY PAYMENT TO A STATE.—The total 

amount paid to a single State under subparagraph (A) 

during a month shall not exceed 1⁄12 of 20 percent of 

the State family assistance grant. 

(ii) PAYMENTS TO ALL STATES.—The total amount 

paid to all States under subparagraph (A) during fiscal 

year 2011 and 2012, respectively, shall not exceed the 

total amount appropriated pursuant to paragraph (2) 

for each such fiscal year. 

(4) ELIGIBLE MONTH.—As used in paragraph (3)(A), the term 

‘‘eligible month’’ means, with respect to a State, a month in the 

2-month period that begins with any month for which the 

State is a needy State. 

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

a needy State for a month if— 


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(A) the average rate of— 

(i) total unemployment in such State (seasonally adjusted) for the period consisting of the most recent 3 

months for which data for all States are published 

equals or exceeds 6.5 percent; and 

(ii) total unemployment in such State (seasonally 

adjusted) for the 3-month period equals or exceeds 110 

percent of such average rate for either (or both) of the 

corresponding 3-month periods ending in the 2 preceding calendar years; or 

(B) as determined by the Secretary of Agriculture (in the 

discretion of the Secretary of Agriculture), the monthly average number of individuals (as of the last day of each 

month) participating in the supplemental nutrition assistance program in the State in the then most recently concluded 3-month period for which data are available exceeds 

by not less than 10 percent the lesser of— 

(i) the monthly average number of individuals (as of 

the last day of each month) in the State that would 

have participated in the supplemental nutrition assistance program in the corresponding 3-month period in 

fiscal year 1994 if the amendments made by titles IV 

and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect 

throughout fiscal year 1994; or 

(ii) the monthly average number of individuals (as of 

the last day of each month) in the State that would 

have participated in the supplemental nutrition assistance program in the corresponding 3-month period in 

fiscal year 1995 if the amendments made by titles IV 

and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect 

throughout fiscal year 1995. 

(6) ANNUAL RECONCILIATION.— 

(A) IN GENERAL.—Notwithstanding paragraph (3), if the 

Secretary makes a payment to a State under this subsection in a fiscal year, then the State shall remit to the 

Secretary, within 1 year after the end of the first subsequent period of 3 consecutive months for which the State 

is not a needy State, an amount equal to the amount (if 

any) by which— 

(i) the total amount paid to the State under paragraph (3) of this subsection in the fiscal year; exceeds 

(ii) the product of— 

(I) the Federal medical assistance percentage for 

the State (as defined in section 1905(b), as such 

section was in effect on September 30, 1995); 

(II) the State’s reimbursable expenditures for 

the fiscal year; and 

(III) 1⁄12 times the number of months during the 

fiscal year for which the Secretary made a payment to the State under such paragraph (3). 

(B) DEFINITIONS.—As used in subparagraph (A): 


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(i) REIMBURSABLE EXPENDITURES.—The term ‘‘reimbursable expenditures’’ means, with respect to a State 

and a fiscal year, the amount (if any) by which— 

(I) countable State expenditures for the fiscal 

year; exceeds 

(II) historic State expenditures (as defined in 

section 409(a)(7)(B)(iii)), excluding any amount expended by the State for child care under subsection (g) or (i) of section 402 (as in effect during 

fiscal year 1994) for fiscal year 1994. 

(ii) COUNTABLE STATE EXPENDITURES.—The term 

‘‘countable expenditures’’ means, with respect to a 

State and a fiscal year— 

(I) the qualified State expenditures (as defined 

in section 409(a)(7)(B)(i) (other than the expenditures described in subclause (I)(bb) of such section)) under the State program funded under this 

part for the fiscal year; plus 

(II) any amount paid to the State under paragraph (3) during the fiscal year that is expended 

by the State under the State program funded 

under this part. 

(C) ADJUSTMENT OF STATE REMITTANCES.— 

(i) IN GENERAL.—The amount otherwise required by 

subparagraph (A) to be remitted by a State for a fiscal 

year shall be increased by the lesser of— 

(I) the total adjustment for the fiscal year, multiplied by the adjustment percentage for the State 

for the fiscal year; or 

(II) the unadjusted net payment to the State for 

the fiscal year. 

(ii) TOTAL ADJUSTMENT.—As used in clause (i), the 

term ‘‘total adjustment’’ means— 

(I) in the case of fiscal year 1998, $2,000,000; 

(II) in the case of fiscal year 1999, $9,000,000; 

(III) in the case of fiscal year 2000, $16,000,000; 

and 

(IV) in the case of fiscal year 2001, $13,000,000. 

(iii) ADJUSTMENT PERCENTAGE.—As used in clause 

(i), the term ‘‘adjustment percentage’’ means, with respect to a State and a fiscal year— 

(I) the unadjusted net payment to the State for 

the fiscal year; divided by 

(II) the sum of the unadjusted net payments to 

all States for the fiscal year. 

(iv) UNADJUSTED NET PAYMENT.—As used in this 

subparagraph, the term, ‘‘unadjusted net payment’’ 

means with respect to a State and a fiscal year— 

(I) the total amount paid to the State under 

paragraph (3) in the fiscal year; minus 

(II) the amount that, in the absence of this subparagraph, would be required by subparagraph 

(A) or by section 409(a)(10) to be remitted by the 

State in respect of the payment. 


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(7) STATE DEFINED.—As used in this subsection, the term 

‘‘State’’ means each of the 50 States and the District of Columbia. 

(8) ANNUAL REPORTS.—The Secretary shall annually report 

to the Congress on the status of the Fund. 

(c) SOCIAL IMPACT DEMONSTRATION PROJECTS.— 

(1) PURPOSES.—The purposes of this subsection are the following: 

(A) To improve the lives of families and individuals in 

need in the United States by funding social programs that 

achieve real results. 

(B) To redirect funds away from programs that, based on 

objective data, are ineffective, and into programs that 

achieve demonstrable, measurable results. 

(C) To ensure Federal funds are used effectively on social 

services to produce positive outcomes for both service recipients and taxpayers. 

(D) To establish the use of social impact partnerships to 

address some of our Nation’s most pressing problems. 

(E) To facilitate the creation of public-private partnerships that bundle philanthropic or other private resources 

with existing public spending to scale up effective social 

interventions already being implemented by private organizations, non-profits, charitable organizations, and State 

and local governments across the country. 

(F) To bring pay-for-performance to the social sector, allowing the United States to improve the impact and effectiveness of vital social services programs while redirecting 

inefficient or duplicative spending. 

(G) To incorporate outcomes measurement and randomized controlled trials or other rigorous methodologies for assessing program impact. 

(2) SOCIAL IMPACT PARTNERSHIP APPLICATION.— 

(A) NOTICE.—Not later than 1 year after the date of the 

enactment of this subsection, the Secretary of the Treasury, 

in consultation with the Federal Interagency Council on Social Impact Partnerships, shall publish in the Federal Register a request for proposals from States or local government for social impact partnership projects in accordance 

with this paragraph. 

(B) REQUIRED OUTCOMES FOR SOCIAL IMPACT PARTNERSHIP PROJECT.—To qualify as a social impact partnership 

project under this subsection, a project must produce 1 or 

more measurable, clearly defined outcomes that result in 

social benefit and Federal savings through any of the following: 

(i) Increasing work and earnings by individuals who 

have been unemployed in the United States for more 

than 6 consecutive months. 

(ii) Increasing employment and earnings of individuals who have attained 16 years of age but not 25 

years of age. 

(iii) Increasing employment among individuals receiving Federal disability benefits. 


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(iv) Reducing the dependence of low-income families 

on Federal means-tested benefits. 

(v) Improving rates of high school graduation. 

(vi) Reducing teen and unplanned pregnancies. 

(vii) Improving birth outcomes and early childhood 

health and development among low-income families 

and individuals. 

(viii) Reducing rates of asthma, diabetes, or other 

preventable diseases among low-income families and 

individuals to reduce the utilization of emergency and 

other high-cost care. 

(ix) Increasing the proportion of children living in 2- 

parent families. 

(x) Reducing incidences and adverse consequences of 

child abuse and neglect. 

(xi) Reducing the number of youth in foster care by 

increasing adoptions, permanent guardianship arrangements, reunification, or placement with a fit and 

willing relative, or by avoiding placing children in foster care by ensuring they can be cared for safely in 

their own homes. 

(xii) Reducing the number of children and youth in 

foster care residing in group homes, child care institutions, agency-operated foster homes, or other non-family foster homes, unless it is determined that it is in the 

interest of the child’s long-term health, safety, or psychological well-being to not be placed in a family foster 

home. 

(xiii) Reducing the number of children returning to 

foster care. 

(xiv) Reducing recidivism among juveniles, individuals released from prison, or other high-risk populations. 

(xv) Reducing the rate of homelessness among our 

most vulnerable populations. 

(xvi) Improving the health and well-being of those 

with mental, emotional, and behavioral health needs. 

(xvii) Improving the educational outcomes of specialneeds or low-income children. 

(xviii) Improving the employment and well-being of 

returning United States military members. 

(xix) Increasing the financial stability of low-income 

families. 

(xx) Increasing the independence and employability 

of individuals who are physically or mentally disabled. 

(xxi) Other measurable outcomes defined by the State 

or local government that result in positive social outcomes and Federal savings. 

(C) APPLICATION REQUIRED.—The notice described in subparagraph (A) shall require a State or local government to 

submit an application for the social impact partnership 

project that addresses the following: 

(i) The outcome goals of the project. 

(ii) A description of each intervention in the project 

and anticipated outcomes of the intervention. 


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(iii) Rigorous evidence demonstrating that the intervention can be expected to produce the desired outcomes. 

(iv) The target population that will be served by the 

project. 

(v) The expected social benefits to participants who 

receive the intervention and others who may be impacted. 

(vi) Projected Federal, State, and local government 

costs and other costs to conduct the project. 

(vii) Projected Federal, State, and local government 

savings and other savings, including an estimate of the 

savings to the Federal Government, on a program-byprogram basis and in the aggregate, if the project is 

implemented and the outcomes are achieved. 

(viii) If savings resulting from the successful completion of the project are estimated to accrue to the State 

or local government, the likelihood of the State or local 

government to realize those savings. 

(ix) A plan for delivering the intervention through a 

social impact partnership model. 

(x) A description of the expertise of each service provider that will administer the intervention, including a 

summary of the experience of the service provider in delivering the proposed intervention or a similar intervention, or demonstrating that the service provider has 

the expertise necessary to deliver the proposed intervention. 

(xi) An explanation of the experience of the State or 

local government, the intermediary, or the service provider in raising private and philanthropic capital to 

fund social service investments. 

(xii) The detailed roles and responsibilities of each 

entity involved in the project, including any State or 

local government entity, intermediary, service provider, 

independent evaluator, investor, or other stakeholder. 

(xiii) A summary of the experience of the service provider delivering the proposed intervention or a similar 

intervention, or a summary demonstrating the service 

provider has the expertise necessary to deliver the proposed intervention. 

(xiv) A summary of the unmet need in the area where 

the intervention will be delivered or among the target 

population who will receive the intervention. 

(xv) The proposed payment terms, the methodology 

used to calculate outcome payments, the payment 

schedule, and performance thresholds. 

(xvi) The project budget. 

(xvii) The project timeline. 

(xviii) The criteria used to determine the eligibility of 

an individual for the project, including how selected 

populations will be identified, how they will be referred 

to the project, and how they will be enrolled in the 

project. 

(xix) The evaluation design. 


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(xx) The metrics that will be used to determine 

whether the outcomes have been achieved and how the 

metrics will be measured. 

(xxi) An explanation of how the metrics used to determine whether the outcomes have been achieved are 

independent, objective indicators of impact and are not 

subject to manipulation by the service provider, intermediary, or investor. 

(xxii) A summary explaining the independence of the 

evaluator from the other entities involved in the project 

and the evaluator’s experience in conducting rigorous 

evaluations of program effectiveness including, where 

available, well-implemented randomized controlled 

trials on the intervention or similar interventions. 

(xxiii) The capacity of the service provider to deliver 

the intervention to the number of participants the State 

or local government proposes to serve in the project. 

(D) PROJECT INTERMEDIARY INFORMATION REQUIRED.— The application described in subparagraph (C) shall also 

contain the following information about any intermediary 

for the social impact partnership project (whether an intermediary is a service provider or other entity): 

(i) Experience and capacity for providing or facilitating the provision of the type of intervention proposed. 

(ii) The mission and goals. 

(iii) Information on whether the intermediary is already working with service providers that provide this 

intervention or an explanation of the capacity of the 

intermediary to begin working with service providers to 

provide the intervention. 

(iv) Experience working in a collaborative environment across government and nongovernmental entities. 

(v) Previous experience collaborating with public or 

private entities to implement evidence-based programs. 

(vi) Ability to raise or provide funding to cover operating costs (if applicable to the project). 

(vii) Capacity and infrastructure to track outcomes 

and measure results, including— 

(I) capacity to track and analyze program performance and assess program impact; and 

(II) experience with performance-based awards 

or performance-based contracting and achieving 

project milestones and targets. 

(viii) Role in delivering the intervention. 

(ix) How the intermediary would monitor program 

success, including a description of the interim benchmarks and outcome measures. 

(E) FEASIBILITY STUDIES FUNDED THROUGH OTHER

SOURCES.—The notice described in subparagraph (A) shall 

permit a State or local government to submit an application for social impact partnership funding that contains information from a feasibility study developed for purposes 

other than applying for funding under this subsection. 

(3) AWARDING SOCIAL IMPACT PARTNERSHIP AGREEMENTS.— 


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(A) TIMELINE IN AWARDING AGREEMENT.—Not later than 

6 months after receiving an application in accordance with 

paragraph (2), the Secretary, in consultation with the Federal Interagency Council on Social Impact Partnerships, 

shall determine whether to enter into an agreement for a 

social impact partnership project with a State or local government. 

(B) CONSIDERATIONS IN AWARDING AGREEMENT.—In determining whether to enter into an agreement for a social 

impact partnership project (the application for which was 

submitted under paragraph (2)) the Secretary, in consultation with the Federal Interagency Council on Social Impact 

Partnerships (established by paragraph (6)) and the head 

of any Federal agency administering a similar intervention 

or serving a population similar to that served by the 

project, shall consider each of the following: 

(i) The recommendations made by the Commission 

on Social Impact Partnerships. 

(ii) The value to the Federal Government of the outcomes expected to be achieved if the outcomes specified 

in the agreement are achieved. 

(iii) The likelihood, based on evidence provided in 

the application and other evidence, that the State or 

local government in collaboration with the intermediary and the service providers will achieve the outcomes. 

(iv) The savings to the Federal Government if the 

outcomes specified in the agreement are achieved. 

(v) The savings to the State and local governments if 

the outcomes specified in the agreement are achieved. 

(vi) The expected quality of the evaluation that would 

be conducted with respect to the agreement. 

(C) AGREEMENT AUTHORITY.— (i) AGREEMENT REQUIREMENTS.—In accordance with 

this paragraph, the Secretary, in consultation with the 

Federal Interagency Council on Social Impact Partnerships and the head of any Federal agency administering a similar intervention or serving a population 

similar to that served by the project, may enter into an 

agreement for a social impact partnership project with 

a State or local government if the Secretary, in consultation with the Federal Interagency Council on Social Impact Partnerships, determines that each of the 

following requirements are met: 

(I) The State or local government agrees to 

achieve 1 or more outcomes specified in the agreement in order to receive payment. 

(II) The Federal payment to the State or local 

government for each outcome specified is less than 

or equal to the value of the outcome to the Federal 

Government over a period not to exceed 10 years, 

as determined by the Secretary, in consultation 

with the State or local government. 

(III) The duration of the project does not exceed 

10 years. 


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(IV) The State or local government has demonstrated, through the application submitted 

under paragraph (2), that, based on prior rigorous 

experimental evaluations or rigorous quasi-experimental studies, the intervention can be expected to 

achieve each outcome specified in the agreement. 

(V) The State, local government, intermediary, or 

service provider has experience raising private or 

philanthropic capital to fund social service investments (if applicable to the project). 

(VI) The State or local government has shown 

that each service provider has experience delivering 

the intervention, a similar intervention, or has otherwise demonstrated the expertise necessary to deliver the intervention. 

(ii) PAYMENT.—The Secretary shall pay the State or 

local government only if the independent evaluator described in paragraph (5) determines that the social impact partnership project has met the requirements specified in the agreement and achieved an outcome specified in the agreement. 

(D) NOTICE OF AGREEMENT AWARD.—Not later than 30 

days after entering into an agreement under this paragraph, the Secretary shall publish a notice in the Federal 

Register that includes, with regard to the agreement, the 

following: 

(i) The outcome goals of the social impact partnership project. 

(ii) A description of each intervention in the project. 

(iii) The target population that will be served by the 

project. 

(iv) The expected social benefits to participants who 

receive the intervention and others who may be impacted. 

(v) The detailed roles, responsibilities, and purposes 

of each Federal, State, or local government entity, 

intermediary, service provider, independent evaluator, 

investor, or other stakeholder. 

(vi) The payment terms, the methodology used to calculate outcome payments, the payment schedule, and 

performance thresholds. 

(vii) The project budget. 

(viii) The project timeline. 

(ix) The project eligibility criteria. 

(x) The evaluation design. 

(xi) The metrics that will be used to determine 

whether the outcomes have been achieved and how 

these metrics will be measured. 

(xii) The estimate of the savings to the Federal, State, 

and local government, on a program-by-program basis 

and in the aggregate, if the agreement is entered into 

and implemented and the outcomes are achieved. 

(E) AUTHORITY TO TRANSFER ADMINISTRATION OF AGREEMENT.—The Secretary may transfer to the head of another 

Federal agency the authority to administer (including makVerDate Sep 11 2014 05:25 Jun 15, 2016 Jkt 059006 PO 00000 Frm 00076 Fmt 6659 Sfmt 6603 E:\HR\OC\HR616.XXX HR616

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ing payments under) an agreement entered into under subparagraph (C), and any funds necessary to do so. 

(4) FEASIBILITY STUDY FUNDING.— (A) REQUESTS FOR FUNDING FOR FEASIBILITY STUDIES.— The Secretary shall reserve a portion of the amount reserved to carry out this subsection to assist States or local 

governments in developing feasibility studies to apply for 

social impact partnership funding under paragraph (2). To 

be eligible to receive funding to assist with completing a 

feasibility study, a State or local government shall submit 

an application for feasibility study funding addressing the 

following: 

(i) A description of the outcome goals of the social 

impact partnership project. 

(ii) A description of the intervention, including anticipated program design, target population, an estimate regarding the number of individuals to be served, 

and setting for the intervention. 

(iii) Evidence to support the likelihood that the intervention will produce the desired outcomes. 

(iv) A description of the potential metrics to be used. 

(v) The expected social benefits to participants who 

receive the intervention and others who may be impacted. 

(vi) Estimated costs to conduct the project. 

(vii) Estimates of Federal, State, and local government savings and other savings if the project is implemented and the outcomes are achieved. 

(viii) An estimated timeline for implementation and 

completion of the project, which shall not exceed 10 

years. 

(ix) With respect to a project for which the State or 

local government selects an intermediary to operate the 

project, any partnerships needed to successfully execute 

the project and the ability of the intermediary to foster 

the partnerships. 

(x) The expected resources needed to complete the feasibility study for the State or local government to apply 

for social impact partnership funding under paragraph 

(2). 

(B) FEDERAL SELECTION OF APPLICATIONS FOR FEASIBILITY STUDY.—Not later than 6 months after receiving an 

application for feasibility study funding under subparagraph (A), the Secretary, in consultation with the Federal 

Interagency Council on Social Impact Partnerships and the 

head of any Federal agency administering a similar intervention or serving a population similar to that served by 

the project, shall select State or local government feasibility 

study proposals for funding based on the following: 

(i) The recommendations made by the Commission 

on Social Impact Partnerships. 

(ii) The likelihood that the proposal will achieve the 

desired outcomes. 

(iii) The value of the outcomes expected to be 

achieved. 


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(iv) The potential savings to the Federal Government 

if the social impact partnership project is successful. 

(v) The potential savings to the State and local governments if the project is successful. 

(C) PUBLIC DISCLOSURE.—Not later than 30 days after selecting a State or local government for feasibility study 

funding under this paragraph, the Secretary shall cause to 

be published on the website of the Federal Interagency 

Council on Social Impact Partnerships information explaining why a State or local government was granted feasibility study funding. 

(D) FUNDING RESTRICTION.— 

(i) FEASIBILITY STUDY RESTRICTION.—The Secretary 

may not provide feasibility study funding under this 

paragraph for more than 50 percent of the estimated 

total cost of the feasibility study reported in the State 

or local government application submitted under subparagraph (A). 

(ii) AGGREGATE RESTRICTION.—Of the total amount 

reserved to carry out this subsection, the Secretary may 

not use more than $10,000,000 to provide feasibility 

study funding to States or local governments under 

this paragraph. 

(iii) NO GUARANTEE OF FUNDING.—The Secretary 

shall have the option to award no funding under this 

paragraph. 

(E) SUBMISSION OF FEASIBILITY STUDY REQUIRED.—Not 

later than 9 months after the receipt of feasibility study 

funding under this paragraph, a State or local government 

receiving the funding shall complete the feasibility study 

and submit the study to the Federal Interagency Council on 

Social Impact Partnerships. 

(F) DELEGATION OF AUTHORITY.—The Secretary may 

transfer to the head of another Federal agency the authorities provided in this paragraph and any funds necessary to 

exercise the authorities. 

(5) EVALUATIONS.— (A) AUTHORITY TO ENTER INTO AGREEMENTS.—For each 

State or local government awarded a social impact partnership project approved by the Secretary under this subsection, the head of the relevant agency, as determined by 

the Federal Interagency Council on Social Impact Partnerships, shall enter into an agreement with the State or local 

government to pay for all or part of the independent evaluation to determine whether the State or local government 

project has met an outcome specified in the agreement in 

order for the State or local government to receive outcome 

payments under this subsection. 

(B) EVALUATOR QUALIFICATIONS.—The head of the relevant agency may not enter into an agreement with a State 

or local government unless the head determines that the 

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mented randomized controlled trials on the intervention or 

similar interventions. 

(C) METHODOLOGIES TO BE USED.—The evaluation used 

to determine whether a State or local government will receive outcome payments under this subsection shall use experimental designs using random assignment or other reliable, evidence-based research methodologies, as certified by 

the Federal Interagency Council on Social Impact Partnerships, that allow for the strongest possible causal inferences 

when random assignment is not feasible. 

(D) PROGRESS REPORT.— (i) SUBMISSION OF REPORT.—The independent evaluator shall— 

(I) not later than 2 years after a project has been 

approved by the Secretary and biannually thereafter until the project is concluded, submit to the 

head of the relevant agency and the Federal Interagency Council on Social Impact Partnerships a 

written report summarizing the progress that has 

been made in achieving each outcome specified in 

the agreement; and 

(II) before the scheduled time of the first outcome 

payment and before the scheduled time of each 

subsequent payment, submit to the head of the relevant agency and the Federal Interagency Council 

on Social Impact Partnerships a written report 

that includes the results of the evaluation conducted to determine whether an outcome payment 

should be made along with information on the 

unique factors that contributed to achieving or 

failing to achieve the outcome, the challenges faced 

in attempting to achieve the outcome, and information on the improved future delivery of this or 

similar interventions. 

(ii) SUBMISSION TO CONGRESS.—Not later than 30 

days after receipt of the written report pursuant to 

clause (i)(II), the Federal Interagency Council on Social 

Impact Partnerships shall submit the report to each 

committee of jurisdiction in the House of Representatives and the Senate. 

(E) FINAL REPORT.— 

(i) SUBMISSION OF REPORT.—Within 6 months after 

the social impact partnership project is completed, the 

independent evaluator shall— 

(I) evaluate the effects of the activities undertaken pursuant to the agreement with regard to 

each outcome specified in the agreement; and 

(II) submit to the head of the relevant agency 

and the Federal Interagency Council on Social Impact Partnerships a written report that includes 

the results of the evaluation and the conclusion of 

the evaluator as to whether the State or local government has fulfilled each obligation of the agreement, along with information on the unique factors 

that contributed to the success or failure of the 


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project, the challenges faced in attempting to 

achieve the outcome, and information on the improved future delivery of this or similar interventions. 

(ii) SUBMISSION TO CONGRESS.—Not later than 30 

days after receipt of the written report pursuant to 

clause (i)(II), the Federal Interagency Council on Social 

Impact Partnerships shall submit the report to each 

committee of jurisdiction in the House of Representatives and the Senate. 

(F) LIMITATION ON COST OF EVALUATIONS.—Of the 

amount reserved under this subsection for social impact 

partnership projects, the Secretary may not obligate more 

than 15 percent to evaluate the implementation and outcomes of the projects. 

(G) DELEGATION OF AUTHORITY.—The Secretary may 

transfer to the head of another Federal agency the authorities provided in this paragraph and any funds necessary to 

exercise the authorities. 

(6) FEDERAL INTERAGENCY COUNCIL ON SOCIAL IMPACT PART- NERSHIPS.— (A) ESTABLISHMENT.—There is established the Federal 

Interagency Council on Social Impact Partnerships (in this 

paragraph referred to as the ‘‘Council’’) to— 

(i) coordinate the efforts of social impact partnership 

projects funded under this subsection; 

(ii) advise and assist the Secretary in the development and implementation of the projects; 

(iii) advise the Secretary on specific programmatic 

and policy matter related to the projects; 

(iv) provide subject-matter expertise to the Secretary 

with regard to the projects; 

(v) ensure that each State or local government that 

has entered into an agreement with the Secretary for a 

social impact partnership project under this subsection 

and each evaluator selected by the head of the relevant 

agency under paragraph (5) has access to Federal administrative data to assist the State or local government and the evaluator in evaluating the performance 

and outcomes of the project; 

(vi) address issues that will influence the future of 

social impact partnership projects in the United States; 

(vii) provide guidance to the executive branch on the 

future of social impact partnership projects in the 

United States; 

(viii) review State and local government applications 

for social impact partnerships to ensure that agreements will only be awarded under this subsection when 

rigorous, independent data and reliable, evidencebased research methodologies support the conclusion 

that an agreement will yield savings to the Federal 

Government if the project outcomes are achieved before 

the applications are approved by the Secretary; 

(ix) certify, in the case of each approved social impact 

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ings to the Federal Government if the project outcomes 

are achieved, and coordinate with the relevant Federal 

agency to produce an after-action accounting once the 

project is complete to determine the actual Federal savings realized, and the extent to which actual savings 

aligned with projected savings; and 

(x) provide oversight of the actions of the Secretary 

and other Federal officials under this subsection and 

report periodically to Congress and the public on the 

implementation of this subsection. 

(B) COMPOSITION OF COUNCIL.—The Council shall have 

11 members, as follows: 

(i) CHAIR.—The Chair of the Council shall be the Director of the Office of Management and Budget. 

(ii) OTHER MEMBERS.—The head of each of the following entities shall designate 1 officer or employee of 

the entity to be a Council member: 

(I) The Department of Labor. 

(II) The Department of Health and Human Services. 

(III) The Social Security Administration. 

(IV) The Department of Agriculture. 

(V) The Department of Justice. 

(VI) The Department of Housing and Urban Development. 

(VII) The Department of Education. 

(VIII) The Department of Veterans Affairs. 

(IX) The Department of the Treasury. 

(X) The Corporation for National and Community Service. 

(7) COMMISSION ON SOCIAL IMPACT PARTNERSHIPS.— (A) ESTABLISHMENT.—There is established the Commission on Social Impact Partnerships (in this paragraph referred to as the ‘‘Commission’’). 

(B) DUTIES.—The duties of the Commission shall be to— 

(i) assist the Secretary and the Federal Interagency 

Council on Social Impact Partnerships in reviewing 

applications for funding under this subsection; 

(ii) make recommendations to the Secretary and the 

Federal Interagency Council on Social Impact Partnerships regarding the funding of social impact partnership agreements and feasibility studies; and 

(iii) provide other assistance and information as requested by the Secretary or the Federal Interagency 

Council on Social Impact Partnerships. 

(C) COMPOSITION.—The Commission shall be composed 

of 9 members, of whom— 

(i) 1 shall be appointed by the President, who will 

serve as the Chair of the Commission; 

(ii) 1 shall be appointed by the Majority Leader of 

the Senate; 

(iii) 1 shall be appointed by the Minority Leader of 

the Senate; 

(iv) 1 shall be appointed by the Speaker of the House 

of Representatives; 


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(v) 1 shall be appointed by the Minority Leader of 

the House of Representatives; 

(vi) 1 shall be appointed by the Chairman of the 

Committee on Finance of the Senate; 

(vii) 1 shall be appointed by the ranking member of 

the Committee on Finance of the Senate; 

(viii) 1 member shall be appointed by the Chairman 

of the Committee on Ways and Means of the House of 

Representatives; and 

(ix) 1 shall be appointed by the ranking member of 

the Committee on Ways and Means of the House of 

Representatives. 

(D) QUALIFICATIONS OF COMMISSION MEMBERS.—The 

members of the Commission shall— 

(i) be experienced in finance, economics, pay for performance, or program evaluation; 

(ii) have relevant professional or personal experience 

in a field related to 1 or more of the outcomes listed in 

this subsection; or 

(iii) be qualified to review applications for social impact partnership projects to determine whether the proposed metrics and evaluation methodologies are appropriately rigorous and reliant upon independent data 

and evidence-based research. 

(E) TIMING OF APPOINTMENTS.—The appointments of the 

members of the Commission shall be made not later than 

120 days after the date of the enactment of this subsection, 

or, in the event of a vacancy, not later than 90 days after 

the date the vacancy arises. If a member of Congress fails 

to appoint a member by that date, the President may select 

a member of the President’s choice on behalf of the member 

of Congress. Notwithstanding the preceding sentence, if not 

all appointments have been made to the Commission as of 

that date, the Commission may operate with no fewer than 

5 members until all appointments have been made. 

(F) TERM OF APPOINTMENTS.— (i) IN GENERAL.—The members appointed under subparagraph (C) shall serve as follows: 

(I) 3 members shall serve for 2 years. 

(II) 3 members shall serve for 3 years. 

(III) 3 members (1 of which shall be Chair of the 

Commission appointed by the President) shall 

serve for 4 years. 

(ii) ASSIGNMENT OF TERMS.—The Commission shall 

designate the term length that each member appointed 

under subparagraph (C) shall serve by unanimous 

agreement. In the event that unanimous agreement 

cannot be reached, term lengths shall be assigned to 

the members by a random process. 

(G) VACANCIES.—Subject to subparagraph (E), in the 

event of a vacancy in the Commission, whether due to the 

resignation of a member, the expiration of a member’s term, 

or any other reason, the vacancy shall be filled in the manner in which the original appointment was made and shall 

not affect the powers of the Commission. 


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(H) APPOINTMENT POWER.—Members of the Commission 

appointed under subparagraph (C) shall not be subject to 

confirmation by the Senate. 

(8) LIMITATION ON USE OF FUNDS.—Of the amounts reserved 

to carry out this subsection, the Secretary may not use more 

than $2,000,000 in any fiscal year to support the review, approval, and oversight of social impact partnership projects, including activities conducted by— 

(A) the Federal Interagency Council on Social Impact 

Partnerships; and 

(B) any other agency consulted by the Secretary before 

approving a social impact partnership project or a feasibility study under paragraph (4). 

(9) NO FEDERAL FUNDING FOR CREDIT ENHANCEMENTS.—No 

amount reserved to carry out this subsection may be used to 

provide any insurance, guarantee, or other credit enhancement 

to a State or local government under which a Federal payment 

would be made to a State or local government as the result of 

a State or local government failing to achieve an outcome specified in a contract. 

(10) AVAILABILITY OF FUNDS.—Amounts reserved to carry out 

this subsection shall remain available until 10 years after the 

date of the enactment of this subsection. 

(11) WEBSITE.—The Federal Interagency Council on Social 

Impact Partnerships shall establish and maintain a public 

website that shall display the following: 

(A) A copy of, or method of accessing, each notice published regarding a social impact partnership project pursuant to this subsection. 

(B) A copy of each feasibility study funded under this 

subsection. 

(C) For each State or local government that has entered 

into an agreement with the Secretary for a social impact 

partnership project, the website shall contain the following 

information: 

(i) The outcome goals of the project. 

(ii) A description of each intervention in the project. 

(iii) The target population that will be served by the 

project. 

(iv) The expected social benefits to participants who 

receive the intervention and others who may be impacted. 

(v) The detailed roles, responsibilities, and purposes 

of each Federal, State, or local government entity, 

intermediary, service provider, independent evaluator, 

investor, or other stakeholder. 

(vi) The payment terms, methodology used to calculate outcome payments, the payment schedule, and 

performance thresholds. 

(vii) The project budget. 

(viii) The project timeline. 

(ix) The project eligibility criteria. 

(x) The evaluation design. 


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(xi) The metrics used to determine whether the proposed outcomes have been achieved and how these 

metrics are measured. 

(D) A copy of the progress reports and the final reports 

relating to each social impact partnership project. 

(E) An estimate of the savings to the Federal, State, and 

local government, on a program-by-program basis and in 

the aggregate, resulting from the successful completion of 

the social impact partnership project. 

(12) REGULATIONS.—The Secretary, in consultation with the 

Federal Interagency Council on Social Impact Partnerships, 

may issue regulations as necessary to carry out this subsection. 

(13) DEFINITIONS.—In this subsection: 

(A) AGENCY.—The term ‘‘agency’’ has the meaning given 

that term in section 551 of title 5, United States Code. 

(B) INTERVENTION.—The term ‘‘intervention’’ means a 

specific service delivered to achieve an impact through a social impact partnership project. 

(C) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Treasury. 

(D) SOCIAL IMPACT PARTNERSHIP PROJECT.—The term 

‘‘social impact partnership project’’ means a project that finances social services using a social impact partnership 

model. 

(E) SOCIAL IMPACT PARTNERSHIP MODEL.—The term ‘‘social impact partnership model’’ means a method of financing social services in which— 

(i) Federal funds are awarded to a State or local government only if a State or local government achieves 

certain outcomes agreed on by the State or local government and the Secretary; and 

(ii) the State or local government coordinates with 

service providers, investors (if applicable to the project), 

and (if necessary) an intermediary to identify— 

(I) an intervention expected to produce the outcome; 

(II) a service provider to deliver the intervention 

to the target population; and 

(III) investors to fund the delivery of the intervention. 

(F) STATE.—The term ‘‘State’’ means each State of the 

United States, the District of Columbia, each commonwealth, territory or possession of the United States, and 

each federally recognized Indian tribe. 

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

subsection (b) for fiscal year 2017, the Secretary shall reserve 

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

* * * * * * * 


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VIII. ADDITIONAL AND DISSENTING VIEWS 

ADDITIONAL VIEWS FOR H.R. 5170 

This legislation represents a missed opportunity to seriously address the ongoing challenge of poverty in America. 

Over the past 50 years, Congress has enacted laws that lifted 

tens of millions of Americans out of poverty, making our anti-poverty programs ten times more effective than they were when the 

War on Poverty began. 

But nearly 47 million Americans are still living in poverty, including one in five children. These families, and the millions of 

families at risk of falling into poverty, face impossible choices every 

day: transportation to work, child care, school supplies, food for 

dinner, and a place to live. They worry about what they will do if 

they or their children get sick and they have no paid leave at work, 

or how they will get to work if the car breaks down. And they have 

nothing left at the end of the month to save for college or retirement. 

A serious attempt to fight poverty would include action on the 

basic supports needed to support work and sustain employment— 

paid leave, access to quality child care, equal pay for women and 

a decent minimum wage, and an Earned Income Tax Credit that 

reaches all workers who need it. 

A serious attempt to fight poverty would include action on affordable housing, access to early childhood education, and an effort to 

make college more affordable to help struggling families raise their 

children and help them toward a better life. 

A serious attempt to fight poverty would build on successful programs like the Supplemental Nutrition Assistance Program 

(SNAP), which lifts nearly 10 million Americans out of poverty, and 

the Social Services Block Grant (SSBG), which provides critical 

help to nearly 30 million Americans. And it would build on the Affordable Health Care, which has given families long-awaited peace 

of mind about high medical bills. 

The millions of families that are struggling deserve more than 

this legislation. 

SANDER M. LEVIN, 

Ranking Member. 


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DISSENTING VIEWS FOR H.R. 5170 

Social impact financing offers the potential of greater private involvement and resources to tackle some serious social problems. 

Though still in an experimental stage, states and localities are involved with feasibility studies to determine its usefulness. Without 

our approving any new legislation, any state can already use Temporary Assistance for Needy Families funds for social impact financing so long as the initiative is designed to achieve the statutory purposes of TANF. If the laboratories of democracy think this 

approach to engage the private sector is cost efficient, they can do 

it now. 

What this bill does is authorize the use of TANF funds for nonTANF purposes. It removes $100 million from a contingency fund 

for needy families, transfers it away from the supervision of the 

Department of Health and Human Services, and authorizes its expenditure for what may well be worthy purposes but purposes that 

are not related to TANF. Now is not the time to reduce funding for 

needy children. 

The TANF contingency fund should be focused on effective ways 

to assist impoverished families moving into long-term jobs through 

which they earn enough to support their families and to offer direct 

assistance to those children in families who cannot secure such 

jobs. It should not be treated as a slush fund to fund an as yet 

unproven social experiment. 

In Texas, only one of every 20 children living below the poverty 

line receives direct TANF assistance. That’s not temporary assistance for needy families—it’s no assistance at all for most. Too often 

TANF has meant less and less for fewer and fewer. 

The sponsors of this legislation refuse any change to this bill. 

Even my modest amendment offering a compromise to require that 

at least half of the monies be used for programs that directly benefit children was rejected on a recorded vote. 

A number of young entrepreneurs with a social conscience, with 

a desire to give back to our communities, these entrepreneurs are 

applying their talents regarding how they can make a difference to 

resolve some of the pressing social problems that we face. In Austin, Texas, for example, I am impressed with a number of feasibility studies already underway to engage more private resources 

in offering answers to pressing public concerns. 

But not everyone who applies for these funds is certain to bring 

this outlook. Many of our nonprofits in Texas and across America 

are trying to grapple with serious local problems like child abuse 

that have been substantially aggravated by State neglect. As the 

need for services has soared and public resources have dwindled, 

these good people in many cases are truly desperate for help—willing to try almost anything that might help them to help others. In 

designing a new program with $100 million in taxpayer funds, we 


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need to ensure that those dollars are put to effective use. We have 

to consider the possibility of the unscrupulous offering false hope 

to a desperate local community. This bill lacks adequate safeguards. 

LLOYD DOGGETT. 

Æ 


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