59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–648 

IMPROVING EMPLOYMENT OUTCOMES OF TANF 

RECIPIENTS ACT 

JUNE 28, 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 

DISSENTING VIEWS 

[To accompany H.R. 2952] 

[Including cost estimate of the Congressional Budget Office] 

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

bill (H.R. 2952) to provide payments to States for increasing the 

employment, job retention, and earnings of former TANF recipients, having considered the same, report favorably thereon with 

amendments and recommend that the bill as amended do pass. 

CONTENTS 

Page 

I. SUMMARY AND BACKGROUND ............................................................... 4 

A. Purpose and Summary ..................................................................... 4 

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

C. Legislative History ............................................................................ 5 

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

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

Section 2: Improving Economic Mobility of TANF Recipients ........... 6 

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

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

IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES ..................... 9 

V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET 

OFFICE ....................................................................................................... 9 

VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

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

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

B. Statement of General Performance Goals and Objectives ............. 11 

C. Applicability of House Rule XXI 5(b) .............................................. 11 


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D. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 11 

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

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

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

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

Reported .......................................................................................... 11 

B. Changes in Existing Law Proposed by the Bill, as Reported ........ 12 

VIII. DISSENTING VIEWS ................................................................................... 62 

The amendments are as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Improving Employment Outcomes of TANF Recipients Act’’. 

SEC. 2. IMPROVING ECONOMIC MOBILITY OF TANF RECIPIENTS. 

Section 403(a)(4) of the Social Security Act (42 U.S.C. 603(a)(4)) is amended to 

read as follows: 

‘‘(4) IMPROVING ECONOMIC MOBILITY OF TANF RECIPIENTS.— 

‘‘(A) MEASURING STATE PERFORMANCE.— 

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

shall collect and report information necessary to measure the level of 

performance of the State for each indicator described in clause (ii), for 

fiscal year 2018 and each fiscal year thereafter, and the Secretary shall 

use the information collected for fiscal year 2018 to establish the baseline level of performance of each State for each such indicator. 

‘‘(ii) INDICATORS.—The indicators described in this clause, for a fiscal 

year, are the following: 

‘‘(I) The employment percentage for the fiscal year, which is 

equal to— 

‘‘(aa) the number of families receiving assistance under the 

State program funded under this part or any other State program funded with qualified State expenditures (as defined in 

section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal 

year, exited from the program, and who, during the 2nd quarter after the exit, include an adult in unsubsidized employment; divided by 

‘‘(bb) the number of families who received assistance from 

the program in the exit quarter referred to in subclause (aa). 

‘‘(II) The retention percentage for the fiscal year, which is equal 

to— 

‘‘(aa) the number of families receiving assistance from the 

State program funded under this part or any other State program funded with qualified State expenditures (as defined in 

section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal 

year, exited from the program, and who, during the 4th quarter after the exit, include an adult in unsubsidized employment; divided by 

‘‘(bb) the number of families who received assistance under 

the program in the exit quarter referred to in subclause (aa). 

‘‘(III) The advancement measure for the fiscal year, which is 

equal to the median earnings of the adults receiving assistance 

under the State program funded under this part or any other State 

program funded with qualified State expenditures (as defined in 

section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal year, 

exited from the program, and who during the 2nd quarter after the 

exit, are in unsubsidized employment. 

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

‘‘(I) FISCAL YEARS 2019 AND 2020.—The State shall reach agreement with the Secretary on the requisite level of performance for 

each indicator described in clause (ii), for each of fiscal years 2019 

and 2020. In establishing the requisite levels of performance, the 

State and the Secretary shall— 

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

the levels established for other States; 


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

‘‘(AA) the differences among States in actual economic 

conditions, including differences in unemployment rates 

and job losses or gains in particular industries; and 

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

the program, including indicators of prior work history, 

lack of educational or occupational skills attainment, or 

other factors that may affect employment and earnings; 

and 

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

each State. 

‘‘(II) FISCAL YEAR 2021.—The State shall reach agreement with 

the Secretary, before fiscal year 2021, on the requisite level of performance for each indicator described in clause (ii), for fiscal year 

2021, which shall be established in accordance with subclause (I) 

of this clause. 

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

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

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

to reflect the actual economic conditions and characteristics of participants during that fiscal year in the State. 

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

performance for actual economic conditions and characteristics of participants, and shall consult with the Secretary of Labor to develop a 

model that is the same as or similar to the model described in section 

116(b)(3)(viii) of the Workforce Innovation and Opportunity Act (29 

U.S.C. 3141). 

‘‘(B) REPORT ON STATE PERFORMANCE.— 

‘‘(i) IN GENERAL.—Not later than October 1, 2017, the Secretary shall 

develop a template which each State shall use to report on outcomes 

achieved under the State program funded under this part or any other 

State program funded with qualified State expenditures (as defined in 

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

‘‘(ii) CONTENTS.—Each such report shall include— 

‘‘(I) the number of individuals who exited the program during the 

year, and their reasons for doing so, including a separate accounting of the number of work-eligible individuals (as so defined) who 

exited the program during the year and their reasons for doing so; 

‘‘(II) the characteristics of the individuals who exited the program during the year, including information on the length of time 

the individual received assistance under the program, the educational level of the individual, and the earnings of the individual 

in the 4 quarters preceding the exit; and 

‘‘(III) information specifying the levels of performance achieved 

on each indicator described in subparagraph (A)(ii). 

‘‘(iii) PUBLICATION.—Not later than September 30 of fiscal year 2020 

and of each succeeding fiscal year, the Secretary shall make available 

electronically to the public each report submitted under this subparagraph during the fiscal year. 

‘‘(C) REGULATIONS.—The Secretary, in consultation with the Secretary of 

Labor, shall prescribe such regulations as may be necessary to provide for 

the measurement of State performance on the indicators described in this 

paragraph.’’. 

SEC. 3. EFFECTIVE DATE. 

The amendments made by this Act shall take effect on October 1, 2016. 

Amend the title so as to read: 

A bill to increase the employment, job retention, and earnings of 

former TANF recipients. 


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I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

H.R. 2952 as amended, the ‘‘Improving Employment Outcomes of 

TANF Recipients Act,’’ as ordered reported by the Committee on 

Ways and Means on May 24, 2016, measures state success in helping TANF recipients find a job and build a successful career. 

B. BACKGROUND AND NEED FOR LEGISLATION

In 1996, Republicans reformed the safety net to better support 

and reward work. As part of these reforms, the failed New Dealera Aid to Families with Dependent Children (AFDC) program was 

replaced with today’s Temporary Assistance for Needy Families 

program (TANF), which established strong requirements for states 

to help welfare recipients prepare for work and find jobs. 

The number of families receiving cash assistance under the 

TANF program fell by more than 50 percent, and has generally remained low over time. Employment rates of single mothers with 

children increased by 15 percent through 2007 compared with 

1995; while their work rates declined as a result of the 2007–09 recession, they have risen again since 2011 and remain 10 percent 

higher than before. Child poverty also declined dramatically during 

this period as more people went to work and earnings increased, 

and poverty among African American households with children 

reached record lows. Poverty among female-headed households 

with children remains lower today than before the 1996 reforms— 

despite two intervening recessions. 

The TANF program has helped shield American families from 

sinking deeper into poverty by providing temporary assistance that 

is also linked to stable employment. But it’s been at least a decade 

since any meaningful changes have been made to this law. 

H.R. 2952, as amended, would require states to measure their 

success in achieving three goals: (1) moving TANF recipients off of 

welfare into work, (2) keeping these former recipients in work, and 

(3) helping them increase their earnings over time. 

Specifically, this bill would require states to measure: 

• The percentage of the state TANF caseload that leaves the 

program and has an adult in the family working two quarters 

(6 months) later; 

• The percentage of the state TANF caseload that leaves the 

program and has an adult in the family working four quarters 

(1 year) later; and 

• The median earnings of adults who leave the program and 

who are employed two quarters (6 months) later. 

Each state would work with the Department of Health and 

Human Services to set goals for these measures, taking into account the characteristics of recipients and a state’s economic conditions. 

The bill creates performance measures and requires states to set 

targets, but does not tie funding to them so states have more time 

to develop these metrics and begin measuring performance. 


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1 Human Resources Subcommittee Discusses Need to Better Coordinate Dozens of Anti-Poverty Programs. November 3, 2015. Accessed March 23, 2016. Available online: http:// 

waysandmeans.house.gov/human-resources-subcommittee-discusses-need-to-better-coordinate-dozens-of-anti-poverty-programs/ 

C. LEGISLATIVE HISTORY

Background 

H.R. 2952, the ‘‘Improving Employment Outcomes of TANF Recipients Act,’’ was introduced on July 7, 2015, by Representative 

Charles W. Boustany, Jr. and was referred to the Committee on 

Ways and Means. 

Committee hearings 

The Committee began a bipartisan, comprehensive review of the 

TANF program at the beginning of the 114th Congress, in early 

January 2015. Over the last fifteen months, the Human Resources 

Subcommittee held a series of hearings with witnesses ranging 

from current and former recipients to service providers to employers to researchers. Members of the Human Resources Subcommittee introduced a series of bills focused on smaller provisions 

within TANF, and then they were compiled into a larger, more 

comprehensive reauthorization draft bill. That bipartisan draft was 

distributed for public comment and dozens of stakeholders provided 

invaluable feedback, some incorporated in H.R. 2952. 

On November 3, 2015, the Human Resources Subcommittee held 

a hearing, specifically on the need to better coordinate federal social services programs to improve services for individuals in need.1

At the hearing, the Subcommittee released a chart highlighting the 

complexity of the current system, with more than 80 federal antipoverty programs designed to help those with limited income—in 

many cases illustrating how these programs are overlapping and 

duplicative. 

Throughout the 114th Congress, the Human Resources Subcommittee has held hearings on duplication in social services programs and the lack of accountability in many federally-funded social service programs. Those hearings included: 

• Challenges Facing Low-Income Individuals and Families 

in Today’s Economy, February 11, 2015 

• Expanding Opportunity by Funding What Works: Using 

Evidence to Help Low-Income Individuals and Families Get 

Ahead, March 17, 2015 

• Next Steps for Welfare Reform: Ideas to Improve TANF to 

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

2015 

• Protecting the Safety Net from Waste, Fraud, and Abuse, 

June 3, 2015 

• Joint Subcommittee Hearing on How Our Welfare System 

Can Discourage Work, June 25, 2015 

• Welfare Reform Proposals, July 15, 2015 

• Moving America’s Families Forward: Lessons Learned from 

Welfare Reform in Other Countries, November 17, 2015 

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


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Committee action 

The Committee on Ways and Means marked up H.R. 2952, the 

‘‘Improving Employment Outcomes of TANF Recipients Act,’’ on 

May 24, 2016. The bill, H.R. 2952, was ordered favorably reported 

to the House of Representatives as amended by a roll call vote of 

23 yeas to 12 nays. 

II. EXPLANATION OF THE BILL 

SECTION 1: SHORT TITLE

Present law 

No provision. 

Explanation of provision 

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

Employment Outcomes of TANF Recipients Act.’’ 

Reason for change 

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

Effective date 

The provision is effective on October 1, 2016. 

SECTION 2: IMPROVING ECONOMIC MOBILITY OF TANF RECIPIENTS

Present law 

The TANF block grant has two sets of performance measures related to work: (1) the Work Participation Rate (WPR), and (2) employment outcome measures that were used for the TANF High 

Performance Bonus before 2006. The WPR is computed to determine compliance with TANF federal work standards. It is the percent of families receiving assistance in the state who are considered 

engaged in work during a fiscal year. A state with a WPR that fails 

to meet the numerical goal specified by the federal work standard 

is at risk of a financial penalty (reduced block grant amount). 

Before FY2006, TANF paid a bonus to states that received scores 

indicating high performance toward achieving the block grant’s 

statutory goals. A state’s performance for this bonus was partially 

determined by a set of employment outcome measures for adults 

receiving TANF assistance: job entry; job retention; and earnings 

gain. The Deficit Reduction Act of 2005 (P.L. 109–171) eliminated 

the performance bonus. However, the TANF statute requires the 

Department of Health and Human Services (HHS) to rank state 

welfare-to-work outcomes. HHS continues to collect the employment outcome measures that were used for the performance bonus 

to conduct that ranking. This ranking is not used to determine program funding or rules, and is for informational purposes only. 

Explanation of provision 

Beginning in fiscal year 2018, each state would be required to 

collect and report information to measure the state performance 

levels based on a new set of employment outcome indicators. The 

new indicators would be percentages for: 


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1. Employment, defined as the number of families receiving assistance from a state program who left the program, and have an 

adult in unsubsidized employment the 2nd quarter following exit, 

divided by the number of families receiving assistance under that 

same program in the same quarter that the aforementioned families left the program; 

2. Retention, defined as the number of families receiving assistance from a state program who left the program, and have an adult 

in unsubsidized employment during the fourth quarter after the 

exit quarter, divided by the number of families receiving assistance 

under that same program in the same quarter that the aforementioned families left the program; and 

3. Advancement, defined as the median earnings of the adults receiving assistance under the state program that exited the program 

and, in the 2nd quarter following exit, were in unsubsidized employment. 

The Secretary would be required to use the information collected 

for fiscal year 2018 as the baseline level of performance of each 

state for each indicator. The bill would require the state and Secretary to come to an agreement in establishing the requisite levels 

of performance for each indicator for fiscal year 2019 and fiscal 

year 2020. It would require that the state and Secretary consider 

how the performance levels for the state compare with levels established in other states. Additionally, in establishing performance 

levels, the state and the Secretary would be required to use an objective statistical adjustment model to ensure such levels are adjusted to reflect the economic conditions of the state and characteristics of the participants during that fiscal year. The bill would require performance levels to be set to promote continuous improvement by each state. 

The bill would also require the Secretary to develop a template, 

before October 2017, for each state to use to report on various characteristics and information related to the operation of the program 

in their state. After September 2020, the Secretary would be required to annually publish every report submitted for this purpose. 

Reason for change 

The TANF statute currently requires states to engage 50 percent 

of their welfare caseload in work or work activities (i.e., work, job 

search, or job training) for a minimum number of hours each week. 

While this policy measures a state’s engagement of TANF recipients in activities, there is currently no measure of how well states 

are helping welfare recipients leave TANF for work, or how well 

states are doing in helping these former recipients keep jobs and 

increase their earnings over time. 

In 2014, Congress passed and the President signed into law the 

Workforce Innovation and Opportunity Act (WIOA), which created 

a common set of metrics for many federally funded employment 

and training programs. It also required TANF to be a mandatory 

workforce development partner at the state level so that all programs were aligned to better coordinate and help individuals find 

and retain employment. 

Aligning TANF’s metrics with other federally funded employment 

and training programs, including those within WIOA, decreases 

burdensome administrative requirements on states, eases the evalVerDate Sep 11 2014 04:19 Jul 01, 2016 Jkt 059006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR648.XXX HR648

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uations of similar services, and provides real savings in the administration of multiple programs. 

Having one set of measurements across multiple programs provides clarity and transparency and ultimately improves the accountability of such programs by helping recipients, service providers, taxpayers, and policymakers better understand whether 

they are working as intended. 

Effective date 

The provision is effective on October 1, 2016. 

SECTION 3: EFFECTIVE DATE

Present law 

No provision. 

Explanation of provision 

This section includes an effective date of October 1, 2016. 

Reason for change 

The Committee believes it is appropriate to have an effective 

date of October 1, 2016, i.e. the start of the next fiscal year. 

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. 2952, the ‘‘Improving Employment Outcomes of TANF Recipients Act,’’ on May 24, 2016. 

The amendment by Mr. Doggett to the amendment in the nature 

of a substitute to H.R. 2952, which would limit the measurement 

of outcomes to a subset of TANF families instead of measuring outcomes based on all families, was not agreed to by a roll call vote 

of 13 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 ......... .............

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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Representative Yea Nay Present Representative Yea Nay Present 

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

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

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

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

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

The bill, H.R. 2952, was ordered favorably reported to the House 

of Representatives as amended by a roll call vote of 23 yeas to 12 

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 ......................... ......... ......... .............

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

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

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

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

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

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

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

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

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

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

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

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

Mr. Young ................................. ......... ......... ............. .................................................. ......... ......... .............

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 ......... ............. .................................................. ......... ......... .............

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. 


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U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, June 2, 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. 2952, the Improving Employment Outcomes of TANF Recipients Act. 

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

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

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 2952—Improving Employment Outcomes of TANF Recipients 

Act 

H.R. 2952 would amend title IV of the Social Security Act to require states, no later than October 1, 2017, to measure their success helping former recipients of assistance under the Temporary 

Assistance for Needy Families (TANF) program enter, retain, and 

advance in employment. Under the bill, states, in consultation with 

the Department of Health and Human Services (MIS), would set 

specific targets for measuring success in each of those three areas. 

Under current law, HHS is required to annually rank state performance in moving TANF recipients into private-sector employment, and states may use TANF funding to support their monitoring and tracking activities. If states alter their spending under 

the TANF program because of the new performance targets, the 

rate of direct spending under the TANF program would change. 

However, based on information from HHS, CBO estimates that any 

change in direct spending would not be significant. Because enacting this bill could affect direct spending, pay-as-you-go procedures 

apply. Enacting the bill would not affect revenues. CBO estimates 

that enacting H.R. 2952 would not increase net direct spending or 

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

H.R. 2952 contains no intergovernmental or private-sector mandates as defmed in the Unfunded Mandates Reform Act and any 

costs to state, local, tribal governments would result from complying with conditions of assistance. 

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

This estimate was approved by H. Samuel Papenfuss, Deputy Assistant Director for Budget Analysis. 

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 RepVerDate Sep 11 2014 04:19 Jul 01, 2016 Jkt 059006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR648.XXX HR648

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resentatives, 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 measure state success in 

helping TANF recipients find a job and build a successful career. 

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. 

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: 


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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 

* * * * * * * 

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 


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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: 

(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

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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.— 

(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, 


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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 

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.— 


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(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. 

(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— 


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(I) the level of welfare spending per poor person 

by the State for fiscal year 1994 is less than 35 

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

or 

(II) the population of the State increased by 

more than 10 percent from April 1, 1990 to July 

1, 1994, according to the population estimates in 

publication CB94–204 of the Bureau of the Census. 

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

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

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

(I) the sum of— 

(aa) the total amount required to be paid to 

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

1994; and 

(bb) the amount (if any) paid to the State 

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

(II) the number of individuals, according to the 

1990 decennial census, who were residents of the 

State and whose income was below the poverty 

line. 

(ii) NATIONAL AVERAGE LEVEL OF STATE WELFARE

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

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

to— 

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

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

by 

(II) the number of individuals, according to the 

1990 decennial census, who were residents of any 

State and whose income was below the poverty 

line. 

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

States of the United States and the District of Columbia. 

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

of the United States not otherwise appropriated, there are 

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

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

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

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

less than the total amount of payments otherwise required 

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

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


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18 

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 

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 PERFORMANCE 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 


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(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 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 


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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 

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 


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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. 

(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 


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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 

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 

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uted 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 

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— 


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24 

(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. 

(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 


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25 

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 

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 


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26 

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. 

(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 


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27 

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 

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. 


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28 

(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 

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. 


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(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 

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 


SSpencer on DSK4SPTVN1PROD with REPORTS
30 

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 

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 CONTRACTS.—A work activity engaged in under a proVerDate Sep 11 2014 04:19 Jul 01, 2016 Jkt 059006 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\HR648.XXX HR648

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31 

gram 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 

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); 


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32 

(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 

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’’). 


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33 

(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— 

(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 


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34 

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): 

(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.— 


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35 

(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. 

(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 (existing law proposed 

to be omitted is enclosed in black brackets, new matter is printed 

in italics, and existing law in which no change is proposed is shown 

in roman): 


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36 

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 

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 

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hood, 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: 

(I) Public advertising campaigns on the value of 

marriage and the skills needed to increase marital 

stability and health. 

(II) Education in high schools on the value of 

marriage, relationship skills, and budgeting. 

(III) Marriage education, marriage skills, and 

relationship skills programs, that may include 

parenting skills, financial management, conflict 

resolution, and job and career advancement. 

(IV) Pre-marital education and marriage skills 

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

(V) Marriage enhancement and marriage skills 

training programs for married couples. 

(VI) Divorce reduction programs that teach relationship skills. 

(VII) Marriage mentoring programs which use 

married couples as role models and mentors in atrisk communities. 

(VIII) Programs to reduce the disincentives to 

marriage in means-tested aid programs, if offered 

in conjunction with any activity described in this 

subparagraph. 

(B) LIMITATION ON USE OF FUNDS FOR DEMONSTRATION

PROJECTS FOR COORDINATION OF PROVISION OF CHILD WELFARE AND TANF SERVICES TO TRIBAL FAMILIES AT RISK OF

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

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

to test the effectiveness of tribal governments or tribal 


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38 

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 PRO- MOTING RESPONSIBLE FATHERHOOD.— (i) IN GENERAL.—Of the amounts made available 

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

competitive basis to States, territories, Indian tribes 

and tribal organizations, and public and nonprofit 

community entities, including religious organizations, 

for activities promoting responsible fatherhood. 

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

(I) Activities to promote marriage or sustain 

marriage through activities such as counseling, 

mentoring, disseminating information about the 

benefits of marriage and 2-parent involvement for 

children, enhancing relationship skills, education 

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

violence and child abuse, marriage preparation 

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

planning seminars, including improving a family’s 

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

mentoring on matters related to family finances, 

including household management, budgeting, 

banking, and handling of financial transactions 

and home maintenance, and divorce education and 

reduction programs, including mediation and 

counseling. 

(II) Activities to promote responsible parenting 

through activities such as counseling, mentoring, 

and mediation, disseminating information about 


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39 

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 

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— 


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(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. 

(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. 


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(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— 

(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— 


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(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. 

ø(4) BONUS TO REWARD HIGH PERFORMANCE STATES.— 

ø(A) IN GENERAL.—The Secretary shall make a grant 

pursuant to this paragraph to each State for each bonus 

year for which the State is a high performing State. 

ø(B) AMOUNT OF GRANT.— 

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

of the grant payable under this paragraph to a high 

performing State for a bonus year, which shall be 

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

precedes the bonus year. 

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

under this paragraph for a bonus year shall not exceed 

5 percent of the State family assistance grant. 

ø(C) FORMULA FOR MEASURING STATE PERFORMANCE.— 

Not later than 1 year after the date of the enactment of 

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

the National Governors’ Association and the American 

Public Welfare Association, shall develop a formula for 

measuring State performance in operating the State program funded under this part so as to achieve the goals set 

forth in section 401(a). 

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

ø(i) use the formula developed under subparagraph 

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

year that immediately precedes the bonus year; and 

ø(ii) prescribe a performance threshold in such a 

manner so as to ensure that— 

ø(I) the average annual total amount of grants 

to be made under this paragraph for each bonus 

year equals $200,000,000; and 

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

under this paragraph for all bonus years equals 

$1,000,000,000. 

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

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


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

an eligible State whose score assigned pursuant to 

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

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

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

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

of the United States not otherwise appropriated, there are 

appropriated for fiscal years 1999 through 2003 

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

(4) IMPROVING ECONOMIC MOBILITY OF TANF RECIPIENTS.— 

(A) MEASURING STATE PERFORMANCE.— 

(i) IN GENERAL.—Each State, in consultation with 

the Secretary, shall collect and report information necessary to measure the level of performance of the State 

for each indicator described in clause (ii), for fiscal 

year 2018 and each fiscal year thereafter, and the Secretary shall use the information collected for fiscal year 

2018 to establish the baseline level of performance of 

each State for each such indicator. 

(ii) INDICATORS.—The indicators described in this 

clause, for a fiscal year, are the following: 

(I) The employment percentage for the fiscal 

year, which is equal to— 

(aa) the number of families receiving assistance under the State program funded under 

this part or any other State program funded 

with qualified State expenditures (as defined 

in section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal year, exited from the program, 

and who, during the 2nd quarter after the 

exit, include an adult in unsubsidized employment; divided by 

(bb) the number of families who received assistance from the program in the exit quarter 

referred to in subclause (aa). 

(II) The retention percentage for the fiscal year, 

which is equal to— 

(aa) the number of families receiving assistance from the State program funded under 

this part or any other State program funded 

with qualified State expenditures (as defined 

in section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal year, exited from the program, 

and who, during the 4th quarter after the exit, 

include an adult in unsubsidized employment; 

divided by 

(bb) the number of families who received assistance under the program in the exit quarter 

referred to in subclause (aa). 

(III) The advancement measure for the fiscal 

year, which is equal to the median earnings of the 

adults receiving assistance under the State program funded under this part or any other State 


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44 

program funded with qualified State expenditures 

(as defined in section 409(a)(7)(B)(ii)) who, during 

a quarter in the fiscal year, exited from the program, and who during the 2nd quarter after the 

exit, are in unsubsidized employment. 

(iii) AGREEMENT ON REQUISITE PERFORMANCE LEVEL

FOR EACH INDICATOR.— (I) FISCAL YEARS 2019 AND 2020.— The State 

shall reach agreement with the Secretary on the 

requisite level of performance for each indicator 

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

2019 and 2020. In establishing the requisite levels 

of performance, the State and the Secretary shall— 

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

other States; 

(bb) ensure the levels involved are adjusted, 

using the objective statistical model referred to 

in clause (v), based on— 

(AA) the differences among States in actual economic conditions, including differences in unemployment rates and job 

losses or gains in particular industries; 

and 

(BB) the characteristics of participants 

on entry into the program, including indicators of prior work history, lack of educational or occupational skills attainment, 

or other factors that may affect employment and earnings; and 

(cc) take into account the extent to which the 

levels involved promote continuous improvement in performance by each State. 

(II) FISCAL YEAR 2021.—The State shall reach 

agreement with the Secretary, before fiscal year 

2021, on the requisite level of performance for each 

indicator described in clause (ii), for fiscal year 

2021, which shall be established in accordance 

with subclause (I) of this clause. 

(iv) REVISIONS BASED ON ECONOMIC CONDITIONS AND

INDIVIDUALS RECEIVING ASSISTANCE DURING THE FISCAL YEAR.—The Secretary shall, in accordance with the 

objective statistical model referred to in clause (v), revise the requisite levels of performance for a fiscal year 

and a State to reflect the actual economic conditions 

and characteristics of participants during that fiscal 

year in the State. 

(v) STATISTICAL ADJUSTMENT MODEL.—The Secretary 

shall use an objective statistical model to make adjustments to the requisite levels of performance for actual 

economic conditions and characteristics of participants, 

and shall consult with the Secretary of Labor to develop a model that is the same as or similar to the 

model described in section 116(b)(3)(viii) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141). 


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(B) REPORT ON STATE PERFORMANCE.— 

(i) IN GENERAL.—Not later than October 1, 2017, the 

Secretary shall develop a template which each State 

shall use to report on outcomes achieved under the 

State program funded under this part or any other 

State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)). 

(ii) CONTENTS.—Each such report shall include— 

(I) the number of individuals who exited the program during the year, and their reasons for doing 

so, including a separate accounting of the number 

of work-eligible individuals (as so defined) who 

exited the program during the year and their reasons for doing so; 

(II) the characteristics of the individuals who 

exited the program during the year, including information on the length of time the individual received assistance under the program, the educational level of the individual, and the earnings 

of the individual in the 4 quarters preceding the 

exit; and 

(III) information specifying the levels of performance achieved on each indicator described in subparagraph (A)(ii). 

(iii) PUBLICATION.—Not later than September 30 of 

fiscal year 2020 and of each succeeding fiscal year, the 

Secretary shall make available electronically to the 

public each report submitted under this subparagraph 

during the fiscal year. 

(C) REGULATIONS.—The Secretary, in consultation with 

the Secretary of Labor, shall prescribe such regulations as 

may be necessary to provide for the measurement of State 

performance on the indicators described in 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 


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46 

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 

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 

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ing 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. 

(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 


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48 

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 

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 


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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 

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. 


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50 

(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. 

(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, 


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51 

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 

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 


SSpencer on DSK4SPTVN1PROD with REPORTS
52 

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. 

(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. 


SSpencer on DSK4SPTVN1PROD with REPORTS
53 

(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 

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 


SSpencer on DSK4SPTVN1PROD with REPORTS
54 

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 

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 


SSpencer on DSK4SPTVN1PROD with REPORTS
55 

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 

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 


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56 

intercensal poverty data for States and counties 

(or, in the case of Puerto Rico, the Virgin Islands, 

Guam, and American Samoa, other poverty data 

selected by the Secretary of Labor); and 

(II) using data for the most recent year for 

which such data is available before the beginning 

of the fiscal year. 

(ii) PRIVATE INDUSTRY COUNCIL.—As used in this 

paragraph, the term ‘‘private industry council’’ means, 

with respect to a service delivery area, the private industry council or local workforce development board 

established for the local workforce development area 

pursuant to title I of the Workforce Innovation and 

Opportunity Act, as appropriate. 

(iii) SERVICE DELIVERY AREA.—As used in this paragraph, the term ‘‘service delivery area’’ shall have the 

meaning given such term for purposes of the Job 

Training Partnership Act or. 

(E) FUNDING FOR INDIAN TRIBES.—1 percent of the 

amount specified in subparagraph (H) for fiscal year 1998 

and $15,000,000 of the amount so specified for fiscal year 

1999 shall be reserved for grants to Indian tribes under 

section 412(a)(3). 

(F) FUNDING FOR EVALUATIONS OF WELFARE-TO-WORK

PROGRAMS.—0.6 percent of the amount specified in subparagraph (H) for fiscal year 1998 and $9,000,000 of the 

amount so specified for fiscal year 1999 shall be reserved 

for use by the Secretary to carry out section 413(j). 

(G) FUNDING FOR EVALUATION OF ABSTINENCE EDUCATION PROGRAMS.— 

(i) IN GENERAL.—0.2 percent of the amount specified 

in subparagraph (H) for fiscal year 1998 and 

$3,000,000 of the amount so specified for fiscal year 

1999 shall be reserved for use by the Secretary to 

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. 


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57 

(ii) AVAILABILITY.—The amounts made available 

pursuant to clause (i) shall remain available for such 

period as is necessary to make the grants provided for 

in this paragraph. 

(I) WORKER PROTECTIONS.— 

(i) NONDISPLACEMENT IN WORK ACTIVITIES.— 

(I) GENERAL PROHIBITION.—Subject to this 

clause, an adult in a family receiving assistance 

attributable to funds provided under this paragraph may fill a vacant employment position in 

order to engage in a work activity. 

(II) PROHIBITION AGAINST VIOLATION OF CONTRACTS.—A work activity engaged in under a program operated with funds provided under this 

paragraph shall not violate an existing contract 

for services or a collective bargaining agreement, 

and such a work activity that would violate a collective bargaining agreement shall not be undertaken without the written concurrence of the labor 

organization and employer concerned. 

(III) OTHER PROHIBITIONS.—An adult participant in a work activity engaged in under a program operated with funds provided under this 

paragraph shall not be employed or assigned— 

(aa) when any other individual is on layoff 

from the same or any substantially equivalent 

job; 

(bb) if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction in its 

workforce with the intention of filling the vacancy so created with the participant; or 

(cc) if the employer has caused an involuntary reduction to less than full time in hours 

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) 


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58 

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 

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 furVerDate Sep 11 2014 04:19 Jul 01, 2016 Jkt 059006 PO 00000 Frm 00058 Fmt 6659 Sfmt 6601 E:\HR\OC\HR648.XXX HR648

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nishing 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— 

(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 


SSpencer on DSK4SPTVN1PROD with REPORTS
60 

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): 

(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. 


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61 

(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. 

(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. 

* * * * * * * 


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(62) 

VIII. DISSENTING VIEWS 

The Committee has considered multiple bills regarding Temporary Assistance for Needy Families (TANF) without actually extending TANF, which expires in four months. The reason for so 

many different TANF bills and a refusal to consider an extension 

in Committee is to block Members from offering genuine reforms 

of TANF designed to make it function more effectively, to avoid 

state diversion of TANF funds away from core TANF purposes, and 

to do more to help TANF recipients move into good, sustainable 

jobs. This is accomplished through a maneuver claiming that any 

significant reform that any member proposes is not germane to any 

of the narrow bills in question. Indeed, the Committee refused to 

consider an amendment that would simply have extended the expiring TANF program for another fiscal year on grounds that it 

was not germane. 

This particular part of the Republican TANF package concerns 

data on wages and employment status, but unfortunately a belated 

amendment to it would make that data a less accurate measure of 

the effectiveness of State efforts to move people into work. The revised bill manipulates numbers, creating the misimpression that 

those who cannot work because of age or disability refuse to work. 

Furthermore, this bill does not provide a measure of the percentage 

of those leaving TANF who have found work. It would be insightful 

to learn whether a state has simply forced an individual off TANF 

or actually helped them to secure a job through which they can 

support their family. 


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63 

We strongly support an accurate employment outcomes measure 

that can offer insight regarding whether state programs are really 

making a difference in moving people from welfare to real, wagepaying, longterm employment and providing opportunity for individuals to work their way out of poverty. This bill’s flaws undercut 

that goal, and unfortunately the Majority rejected an amendment 

that would have corrected these shortcomings. 

SANDER M. LEVIN. 

CHARLES B. RANGEL. 

JOHN LEWIS. 

XAVIER BECERRA. 

BILL PASCRELL, Jr. 

LLOYD DOGGETT. 

JIM MCDERMOTT. 

RICHARD E. NEAL. 

EARL BLUMENAUER. 

JOHN B. LARSON. 

RON KIND. 

DANNY DAVIS. 

MIKE THOMPSON. 

JOSEPH CROWLEY. 

LINDA SA ́ NCHEZ. 

Æ 


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