```

[House Report 114-645]
[From the U.S. Government Publishing Office]

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
          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 Deal-era 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.
    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
           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.

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.

                                     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 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:

         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

           *       *       *       *       *       *       *

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[.]; 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.

           *       *       *       *       *       *       *

                         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.

                                  [all]
```