59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–645 

REDUCING POVERTY THROUGH EMPLOYMENT 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 

ADDITIONAL VIEWS 

[To accompany H.R. 2966] 

[Including cost estimate of the Congressional Budget Office] 

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

bill (H.R. 2966) to amend the purposes of TANF to include reducing 

poverty by increasing employment entry, retention, and advancement, having considered the same, report favorably thereon with 

an amendment and recommend that the bill as amended do pass. 

CONTENTS 

I. SUMMARY AND BACKGROUND ............................................................... 2 

A. Purpose and Summary .................................................................... 2 

B. Background and Need for Legislation ............................................ 2 

C. Legislative History ........................................................................... 3 

II. EXPLANATION OF THE BILL ................................................................... 4 

Section 1: Short Title ............................................................................. 4 

Section 2: Purposes of the TANF Program to Include Reducing 

Poverty Through Work ................................................................... 4 

Section 3: Effective Date ....................................................................... 5 

III. VOTES OF THE COMMITTEE .................................................................... 5 

IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES ..................... 5 

V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET 

OFFICE ....................................................................................................... 5 

VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF 

THE HOUSE .............................................................................................. 6 

A. Committee Oversight Findings and Recommendations ................ 6 

B. Statement of General Performance Goals and Objectives ............ 6 

C. Applicability of House Rule XXI 5(b) .............................................. 7 


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D. Congressional Earmarks, Limited Tax Benefits, and Limited 

Tariff Benefits ................................................................................. 7 

E. Duplication of Federal Programs .................................................... 7 

F. Disclosure of Directed Rule Makings .............................................. 7 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED 7 

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

Reported .......................................................................................... 7 

B. Changes in Existing Law Proposed by the Bill, as Reported ....... 8 

VIII. ADDITIONAL VIEWS ................................................................................... 10 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Reducing Poverty through Employment Act’’. 

SEC. 2. PURPOSES OF THE TANF PROGRAM TO INCLUDE REDUCING POVERTY THROUGH 

WORK. 

Section 401(a) of the Social Security Act (42 U.S.C. 601(a)) is amended— 

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

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

and 

(3) by adding at the end the following: 

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

SEC. 3. EFFECTIVE DATE. 

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

I. SUMMARY AND BACKGROUND 

A. PURPOSE AND SUMMARY

H.R. 2966 as amended, the ‘‘Reducing Poverty through Employment Act,’’ as ordered reported by the Committee on Ways and 

Means on May 11, 2016, amends the purposes of the Temporary 

Assistance for Needy Families program to include reducing poverty 

by increasing employment entry, retention, and advancement. 

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. 


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Under current law, TANF has the following four statutory purposes: 

• Provide assistance to needy families so that children may 

be cared for in their own homes or in the homes of relatives; 

• End the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; 

• Prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing 

and reducing the incidence of these pregnancies; and 

• Encourage the formation and maintenance of two-parent 

families. 

While the overall goal of TANF is to help low-income individuals 

and families achieve self-sufficiency and improve their lives, the 

program does not currently have an explicit focus on reducing poverty. 

H.R. 2966, as amended, would add a new purpose to TANF to explicitly recognize that the best way out of poverty is a job. The new 

purpose of TANF would be to reduce child poverty by increasing 

employment entry, retention, and advancement of low-income parents, ensuring states keep the focus of the program on promoting 

work to help families move up the economic ladder. 

C. LEGISLATIVE HISTORY

Background 

H.R. 2966, the ‘‘Reducing Poverty through Employment Act,’’ was 

introduced on July 8, 2015, by Representative Jason Smith , 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. 2966. 

Throughout the Congress, the Human Resources Subcommittee 

held a series of hearings on reforms to TANF, including discussions 

on its core purposes. 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 


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• Joint Subcommittee Hearing on How Our Welfare System 

Can Discourage Work, June 25, 2015 • Welfare Reform Proposals, July 15, 2015 • Better Coordinating Welfare Programs to Serve Families in 

Need, November 3, 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 

Committee action 

The Committee on Ways and Means marked up H.R. 2966, the 

‘‘Reducing Poverty through Employment Act,’’ on May 11, 2016. 

The bill, H.R. 2966, was ordered favorably reported to the House 

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

being present). 

II. EXPLANATION OF THE BILL 

SECTION 1: SHORT TITLE

Present law 

No provision. 

Explanation of provision 

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

Poverty through Employment 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: PURPOSES OF THE TANF PROGRAM TO INCLUDE

REDUCING POVERTY THROUGH WORK

Present law 

The purpose of the Temporary Assistance for Needy Families 

(TANF) block grant is to increase the flexibility of states in operating a program designed to achieve four statutory goals: (1) provide assistance for needy families so that children may reside in 

their own homes, or with relatives; (2) promote job readiness, work, 

and marriage in order to decrease the dependence of parents on 

government programs; (3) have states establish goals to prevent 

and reduce the incidence of out-of-wedlock pregnancies; and (4) encourage the formation and maintenance of two-parent households. 

TANF’s statutory purpose is both an aspirational statement about 

the goals of the block grant and a basis for how states may expend 

TANF funds. 

Explanation of provision 

The Committee bill would add ‘‘to reduce child poverty by increasing employment, retention, and advancement of needy parents’’ as a fifth main purpose of the TANF program. 


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Reason for change 

The Committee believes that the new purpose of TANF would encourage states to keep the focus of the program on promoting work 

to help families move up the economic ladder. 

Effective date 

The provision is effective on October 1, 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. 

Effective date 

The provision is effective on October 1, 2016. 

III. VOTES OF THE COMMITTEE 

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the vote of the Committee on Ways and Means in its consideration of H.R. 2966, the ‘‘Reducing Poverty through Employment Act,’’ on May 11, 2016. 

The Committee on Ways and Means marked up H.R. 2966, the 

‘‘Reducing Poverty through Employment Act,’’ on May 11, 2016. 

The bill, H.R. 2966, was ordered favorably reported to the House 

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

being present). 

IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES 

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee states that the bill involves no new budget authority or tax expenditures 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, May 13, 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. 2966, the Reducing Poverty through Employment 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. 2966—Reducing Poverty through Employment Act 

H.R. 2966 would amend title IV of the Social Security Act to add 

a statutory purpose to the Temporary Assistance for Needy Families (TANF) program. That new purpose would be to reduce child 

poverty by promoting employment opportunities for low-income 

parents. 

The budget authority for TANF is specified under current law 

and is shown in the budget as direct spending; this bill would not 

change the amount specified, but depending on how states would 

address this new purpose, the rate of direct spending for the program could change. Because enacting this bill could affect direct 

spending, pay-as-you-go procedures apply; however, based on information from the Department of Health and Human Services, CBO 

estimates that those effects would not be significant. Enacting H.R. 

2966 would not affect revenues. 

CBO estimates that enacting H.R. 2966 would not increase net 

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

10-year periods beginning in 2027. 

H.R. 2966 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local or tribal governments. 

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 Representatives, are incorporated in the description portions of this report. 

B. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

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

the Rules of the House of Representatives, the performance goals 


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and objectives of this legislation amends the purposes of the Temporary Assistance for Needy Families program to include reducing 

poverty by increasing employment entry, retention, and advancement. 

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. 401. PURPOSE. 

(a) IN GENERAL.—The purpose of this part is to increase the 

flexibility of States in operating a program designed to— 

(1) provide assistance to needy families so that children may 

be cared for in their own homes or in the homes of relatives; 

(2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; 

(3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing 

and reducing the incidence of these pregnancies; and 

(4) encourage the formation and maintenance of two-parent 

families. 

(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any 

State program funded under this part. 

* * * * * * * 

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): 

SOCIAL SECURITY ACT 

* * * * * * * 


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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. 401. PURPOSE. 

(a) IN GENERAL.—The purpose of this part is to increase the 

flexibility of States in operating a program designed to— 

(1) provide assistance to needy families so that children may 

be cared for in their own homes or in the homes of relatives; 

(2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; 

(3) prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing 

and reducing the incidence of these pregnancies; øand¿ 

(4) encourage the formation and maintenance of two-parent 

familiesø.¿; and 

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

(b) NO INDIVIDUAL ENTITLEMENT.—This part shall not be interpreted to entitle any individual or family to assistance under any 

State program funded under this part. 

* * * * * * * 


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VIII. ADDITIONAL VIEWS 

This legislation represents a missed opportunity to seriously address the ongoing challenge of poverty in America. 

Over the past 50 years, Congress has enacted laws that lifted 

tens of millions of Americans out of poverty, making our anti-poverty programs ten times more effective than they were when the 

War on Poverty began. 

But nearly 47 million Americans are still living in poverty, including one in five children. These families, and the millions of 

families at risk of falling into poverty, face impossible choices every 

day: transportation to work, child care, school supplies, food for 

dinner, and a place to live. They worry about what they will do if 

they or their children get sick and they have no paid leave at work, 

or how they will get to work if the car breaks down. And they have 

nothing left at the end of the month to save for college or retirement. 

A serious attempt to fight poverty would include action on the 

basic supports needed to support work and sustain employment— 

paid leave, access to quality child care, equal pay for women and 

a decent minimum wage, and an Earned Income Tax Credit that 

reaches all workers who need it. 

A serious attempt to fight poverty would include action on affordable housing, access to early childhood education, and an effort to 

make college more affordable to help struggling families raise their 

children and help them toward a better life. 

A serious attempt to fight poverty would build on successful programs like the Supplemental Nutrition Assistance Program 

(SNAP), which lifts nearly 10 million Americans out of poverty, and 

the Social Services Block Grant (SSBG), which provides critical 

help to nearly 30 million Americans. And it would build on the Affordable Health Care, which has given families long-awaited peace 

of mind about high medical bills. 

The millions of families that are struggling deserve more than 

this legislation. 

SANDER M. LEVIN, Ranking Member. 

Æ 


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