```

[House Report 114-648]
[From the U.S. Government Publishing Office]

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
          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;
                                          ``(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.

                       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 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.
    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.

                         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 anti-poverty programs 
designed to help those with limited income--in many cases 
illustrating how these programs are overlapping and 
duplicative.
---------------------------------------------------------------------------
    \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/
---------------------------------------------------------------------------
    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

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:
    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 evaluations 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   .........  ...................  .......  .......  .........
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.

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

        B. Statement of General Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of this legislation are to 
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:

         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 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 at-risk 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 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 
                        fatherhood.--In this paragraph, the 
                        term ``activities promoting responsible 
                        fatherhood'' means the following:
                                  (I) Activities to promote 
                                marriage or sustain marriage 
                                through activities such as 
                                counseling, mentoring, 
                                disseminating information about 
                                the benefits of marriage and 2-
                                parent involvement for 
                                children, enhancing 
                                relationship skills, education 
                                regarding how to control 
                                aggressive behavior, 
                                disseminating information on 
                                the causes of domestic violence 
                                and child abuse, marriage 
                                preparation programs, 
                                premarital counseling, marital 
                                inventories, skills-based 
                                marriage education, financial 
                                planning seminars, including 
                                improving a family's ability to 
                                effectively manage family 
                                business affairs by means such 
                                as education, counseling, or 
                                mentoring on matters related to 
                                family finances, including 
                                household management, 
                                budgeting, banking, and 
                                handling of financial 
                                transactions and home 
                                maintenance, and divorce 
                                education and reduction 
                                programs, including mediation 
                                and counseling.
                                  (II) Activities to promote 
                                responsible parenting through 
                                activities such as counseling, 
                                mentoring, and mediation, 
                                disseminating information about 
                                good parenting practices, 
                                skills-based parenting 
                                education, encouraging child 
                                support payments, and other 
                                methods.
                                  (III) Activities to foster 
                                economic stability by helping 
                                fathers improve their economic 
                                status by providing activities 
                                such as work first services, 
                                job search, job training, 
                                subsidized employment, job 
                                retention, job enhancement, and 
                                encouraging education, 
                                including career-advancing 
                                education, dissemination of 
                                employment materials, 
                                coordination with existing 
                                employment services such as 
                                welfare-to-work programs, 
                                referrals to local employment 
                                training initiatives, and other 
                                methods.
                                  (IV) Activities to promote 
                                responsible fatherhood that are 
                                conducted through a contract 
                                with a nationally recognized, 
                                nonprofit fatherhood promotion 
                                organization, such as the 
                                development, promotion, and 
                                distribution of a media 
                                campaign to encourage the 
                                appropriate involvement of 
                                parents in the life of any 
                                child and specifically the 
                                issue of responsible 
                                fatherhood, and the development 
                                of a national clearinghouse to 
                                assist States and communities 
                                in efforts to promote and 
                                support marriage and 
                                responsible fatherhood.
                  (D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                year 2012 for expenditure in accordance with 
                this paragraph--
                          (i) $75,000,000 for awarding funds 
                        for the purpose of carrying out healthy 
                        marriage promotion activities; and
                          (ii) $75,000,000 for awarding funds 
                        for the purpose of carrying out 
                        activities promoting responsible 
                        fatherhood.
                If the Secretary makes an award under 
                subparagraph (B)(i) for fiscal year 2012, the 
                funds for such award shall be taken in equal 
                portion from the amounts appropriated under 
                clauses (i) and (ii).
                  (E) Preference.--In awarding funds under this 
                paragraph for fiscal year 2011, the Secretary 
                shall give preference to entities that were 
                awarded funds under this paragraph for any 
                prior fiscal year and that have demonstrated 
                the ability to successfully carry out the 
                programs funded under this paragraph.
          (3) Supplemental grant for population increases in 
        certain states.--
                  (A) In general.--Each qualifying State shall, 
                subject to subparagraph (F), be entitled to 
                receive from the Secretary--
                          (i) for fiscal year 1998 a grant in 
                        an amount equal to 2.5 percent of the 
                        total amount required to be paid to the 
                        State under former section 403 (as in 
                        effect during fiscal year 1994) for 
                        fiscal year 1994; and
                          (ii) for each of fiscal years 1999, 
                        2000, and 2001, a grant in an amount 
                        equal to the sum of--
                                  (I) the amount (if any) 
                                required to be paid to the 
                                State under this paragraph for 
                                the immediately preceding 
                                fiscal year; and
                                  (II) 2.5 percent of the sum 
                                of--
                                          (aa) the total amount 
                                        required to be paid to 
                                        the State under former 
                                        section 403 (as in 
                                        effect during fiscal 
                                        year 1994) for fiscal 
                                        year 1994; and
                                          (bb) the amount (if 
                                        any) required to be 
                                        paid to the State under 
                                        this paragraph for the 
                                        fiscal year preceding 
                                        the fiscal year for 
                                        which the grant is to 
                                        be made.
                  (B) Preservation of grant without increases 
                for states failing to remain qualifying 
                states.--Each State that is not a qualifying 
                State for a fiscal year specified in 
                subparagraph (A)(ii) but was a qualifying State 
                for a prior fiscal year shall, subject to 
                subparagraph (F), be entitled to receive from 
                the Secretary for the specified fiscal year, a 
                grant in an amount equal to the amount required 
                to be paid to the State under this paragraph 
                for the most recent fiscal year for which the 
                State was a qualifying State.
                  (C) Qualifying state.--
                          (i) In general.--For purposes of this 
                        paragraph, a State is a qualifying 
                        State for a fiscal year if--
                                  (I) the level of welfare 
                                spending per poor person by the 
                                State for the immediately 
                                preceding fiscal year is less 
                                than the national average level 
                                of State welfare spending per 
                                poor person for such preceding 
                                fiscal year; and
                                  (II) the population growth 
                                rate of the State (as 
                                determined by the Bureau of the 
                                Census) for the most recent 
                                fiscal year for which 
                                information is available 
                                exceeds the average population 
                                growth rate for all States (as 
                                so determined) for such most 
                                recent fiscal year.
                          (ii) State must qualify in fiscal 
                        year 1998.--Notwithstanding clause (i), 
                        a State shall not be a qualifying State 
                        for any fiscal year after 1998 by 
                        reason of clause (i) if the State is 
                        not a qualifying State for fiscal year 
                        1998 by reason of clause (i).
                          (iii) Certain states deemed 
                        qualifying states.--For purposes of 
                        this paragraph, a State is deemed to be 
                        a qualifying State for fiscal years 
                        1998, 1999, 2000, and 2001 if--
                                  (I) the level of welfare 
                                spending per poor person by the 
                                State for fiscal year 1994 is 
                                less than 35 percent of the 
                                national average level of State 
                                welfare spending per poor 
                                person for fiscal year 1994; or
                                  (II) the population of the 
                                State increased by more than 10 
                                percent from April 1, 1990 to 
                                July 1, 1994, according to the 
                                population estimates in 
                                publication CB94-204 of the 
                                Bureau of the Census.
                  (D) Definitions.--As used in this paragraph:
                          (i) Level of welfare spending per 
                        poor 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 
                appropriations.--If the amount appropriated 
                pursuant to this paragraph for a fiscal year 
                (or portion of a fiscal year) is less than the 
                total amount of payments otherwise required to 
                be made under this paragraph for the fiscal 
                year (or portion of the fiscal year), then the 
                amount otherwise payable to any State for the 
                fiscal year (or portion of the fiscal year) 
                under this paragraph shall be reduced by a 
                percentage equal to the amount so appropriated 
                divided by such total amount.
                  (G) Budget scoring.--Notwithstanding section 
                257(b)(2) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985, the baseline shall 
                assume that no grant shall be made under this 
                paragraph after fiscal year 2001.
                  (H) Reauthorization.--Notwithstanding any 
                other provision of this paragraph--
                          (i) any State that was a qualifying 
                        State under this paragraph for fiscal 
                        year 2001 or any prior fiscal year 
                        shall be entitled to receive from the 
                        Secretary for each of fiscal years 2002 
                        and 2003 a grant in an amount equal to 
                        the amount required to be paid to the 
                        State under this paragraph for the most 
                        recent fiscal year in which the State 
                        was a qualifying State;
                          (ii) subparagraph (G) shall be 
                        applied as if ``fiscal year 2011'' were 
                        substituted for ``fiscal year 2001'';
                          (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
                          (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 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 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 
                                        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 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.
                          (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, 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 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.
                                  (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 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 
                        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 poverty line.--For purposes of this 
                        paragraph, the number of individuals 
                        with an income that is less than the 
                        poverty line shall be determined for a 
                        fiscal year--
                                  (I) based on the methodology 
                                used by the Bureau of the 
                                Census to produce and publish 
                                intercensal poverty data for 
                                States and counties (or, in the 
                                case of Puerto Rico, the Virgin 
                                Islands, Guam, and American 
                                Samoa, other poverty data 
                                selected by the Secretary of 
                                Labor); and
                                  (II) using data for the most 
                                recent year for which such data 
                                is available before the 
                                beginning of the fiscal year.
                          (ii) Private industry council.--As 
                        used in this paragraph, the term 
                        ``private industry council'' means, 
                        with respect to a service delivery 
                        area, the private industry council or 
                        local workforce development board 
                        established for the local workforce 
                        development area pursuant to title I of 
                        the Workforce Innovation and 
                        Opportunity Act, as appropriate.
                          (iii) Service delivery area.--As used 
                        in this paragraph, the term ``service 
                        delivery area'' shall have the meaning 
                        given such term for purposes of the Job 
                        Training Partnership Act or.
                  (E) Funding for indian tribes.--1 percent of 
                the amount specified in subparagraph (H) for 
                fiscal year 1998 and $15,000,000 of the amount 
                so specified for fiscal year 1999 shall be 
                reserved for grants to Indian tribes under 
                section 412(a)(3).
                  (F) Funding for evaluations of welfare-to-
                work programs.--0.6 percent of the amount 
                specified in subparagraph (H) for fiscal year 
                1998 and $9,000,000 of the amount so specified 
                for fiscal year 1999 shall be reserved for use 
                by the Secretary to carry out section 413(j).
                  (G) Funding for evaluation of abstinence 
                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.
                          (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) 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 furnishing to a 
                private industry council the names, addresses, 
                telephone numbers, and identifying case number 
                information in the State program funded under 
                this part, of noncustodial parents residing in 
                the service delivery area of the private 
                industry council, for the purpose of 
                identifying and contacting noncustodial parents 
                regarding participation in the program under 
                this paragraph.
  (b) Contingency Fund.--
          (1) Establishment.--There is hereby established in 
        the Treasury of the United States a fund which shall be 
        known as the ``Contingency Fund for State Welfare 
        Programs'' (in this section referred to as the 
        ``Fund'').
          (2) Deposits into fund.--Out of any money in the 
        Treasury of the United States not otherwise 
        appropriated, there are appropriated for fiscal years 
        2013 and 2014 such sums as are necessary for payment to 
        the Fund in a total amount not to exceed $612,000,000 
        for each fiscal year, of which $2,000,000 shall be 
        reserved for carrying out the activities of the 
        commission established by the Protect our Kids Act of 
        2012 to reduce fatalities resulting from child abuse 
        and neglect.
          (3) Grants.--
                  (A) Provisional payments.--If an eligible 
                State submits to the Secretary a request for 
                funds under this paragraph during an eligible 
                month, the Secretary shall, subject to this 
                paragraph, pay to the State, from amounts 
                appropriated pursuant to paragraph (2), an 
                amount equal to the amount of funds so 
                requested.
                  (B) Payment priority.--The Secretary shall 
                make payments under subparagraph (A) in the 
                order in which the Secretary receives requests 
                for such payments.
                  (C) Limitations.--
                          (i) Monthly payment to a state.--The 
                        total amount paid to a single State 
                        under subparagraph (A) during a month 
                        shall not exceed \1/12\ of 20 percent 
                        of the State family assistance grant.
                          (ii) Payments to all states.--The 
                        total amount paid to all States under 
                        subparagraph (A) during fiscal year 
                        2011 and 2012, respectively, shall not 
                        exceed the total amount appropriated 
                        pursuant to paragraph (2) for each such 
                        fiscal year.
          (4) Eligible month.--As used in paragraph (3)(A), the 
        term ``eligible month'' means, with respect to a State, 
        a month in the 2-month period that begins with any 
        month for which the State is a needy State.
          (5) Needy state.--For purposes of paragraph (4), a 
        State is a needy State for a month if--
                  (A) the average rate of--
                          (i) total unemployment in such State 
                        (seasonally adjusted) for the period 
                        consisting of the most recent 3 months 
                        for which data for all States are 
                        published equals or exceeds 6.5 
                        percent; and
                          (ii) total unemployment in such State 
                        (seasonally adjusted) for the 3-month 
                        period equals or exceeds 110 percent of 
                        such average rate for either (or both) 
                        of the corresponding 3-month periods 
                        ending in the 2 preceding calendar 
                        years; or
                  (B) as determined by the Secretary of 
                Agriculture (in the discretion of the Secretary 
                of Agriculture), the monthly average number of 
                individuals (as of the last day of each month) 
                participating in the supplemental nutrition 
                assistance program in the State in the then 
                most recently concluded 3-month period for 
                which data are available exceeds by not less 
                than 10 percent the lesser of--
                          (i) the monthly average number of 
                        individuals (as of the last day of each 
                        month) in the State that would have 
                        participated in the supplemental 
                        nutrition assistance program in the 
                        corresponding 3-month period in fiscal 
                        year 1994 if the amendments made by 
                        titles IV and VIII of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996 had been in 
                        effect throughout fiscal year 1994; or
                          (ii) the monthly average number of 
                        individuals (as of the last day of each 
                        month) in the State that would have 
                        participated in the supplemental 
                        nutrition assistance program in the 
                        corresponding 3-month period in fiscal 
                        year 1995 if the amendments made by 
                        titles IV and VIII of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996 had been in 
                        effect throughout fiscal year 1995.
          (6) Annual reconciliation.--
                  (A) In general.--Notwithstanding paragraph 
                (3), if the Secretary makes a payment to a 
                State under this subsection in a fiscal year, 
                then the State shall remit to the Secretary, 
                within 1 year after the end of the first 
                subsequent period of 3 consecutive months for 
                which the State is not a needy State, an amount 
                equal to the amount (if any) by which--
                          (i) the total amount paid to the 
                        State under paragraph (3) of this 
                        subsection in the fiscal year; exceeds
                          (ii) the product of--
                                  (I) the Federal medical 
                                assistance percentage for the 
                                State (as defined in section 
                                1905(b), as such section was in 
                                effect on September 30, 1995);
                                  (II) the State's reimbursable 
                                expenditures for the fiscal 
                                year; and
                                  (III) \1/12\ times the number 
                                of months during the fiscal 
                                year for which the Secretary 
                                made a payment to the State 
                                under such paragraph (3).
                  (B) Definitions.--As used in subparagraph 
                (A):
                          (i) Reimbursable expenditures.--The 
                        term ``reimbursable expenditures'' 
                        means, with respect to a State and a 
                        fiscal year, the amount (if any) by 
                        which--
                                  (I) countable State 
                                expenditures for the fiscal 
                                year; exceeds
                                  (II) historic State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(iii)), 
                                excluding any amount expended 
                                by the State for child care 
                                under subsection (g) or (i) of 
                                section 402 (as in effect 
                                during fiscal year 1994) for 
                                fiscal year 1994.
                          (ii) Countable state expenditures.--
                        The term ``countable expenditures'' 
                        means, with respect to a State and a 
                        fiscal year--
                                  (I) the qualified State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(i) (other 
                                than the expenditures described 
                                in subclause (I)(bb) of such 
                                section)) under the State 
                                program funded under this part 
                                for the fiscal year; plus
                                  (II) any amount paid to the 
                                State under paragraph (3) 
                                during the fiscal year that is 
                                expended by the State under the 
                                State program funded under this 
                                part.
                  (C) Adjustment of state remittances.--
                          (i) In general.--The amount otherwise 
                        required by subparagraph (A) to be 
                        remitted by a State for a fiscal year 
                        shall be increased by the lesser of--
                                  (I) the total adjustment for 
                                the fiscal year, multiplied by 
                                the adjustment percentage for 
                                the State for the fiscal year; 
                                or
                                  (II) the unadjusted net 
                                payment to the State for the 
                                fiscal year.
                          (ii) Total adjustment.--As used in 
                        clause (i), the term ``total 
                        adjustment'' means--
                                  (I) in the case of fiscal 
                                year 1998, $2,000,000;
                                  (II) in the case of fiscal 
                                year 1999, $9,000,000;
                                  (III) in the case of fiscal 
                                year 2000, $16,000,000; and
                                  (IV) in the case of fiscal 
                                year 2001, $13,000,000.
                          (iii) Adjustment percentage.--As used 
                        in clause (i), the term ``adjustment 
                        percentage'' means, with respect to a 
                        State and a fiscal year--
                                  (I) the unadjusted net 
                                payment to the State for the 
                                fiscal year; divided by
                                  (II) the sum of the 
                                unadjusted net payments to all 
                                States for the fiscal year.
                          (iv) Unadjusted net payment.--As used 
                        in this subparagraph, the term, 
                        ``unadjusted net payment'' means with 
                        respect to a State and a fiscal year--
                                  (I) the total amount paid to 
                                the State under paragraph (3) 
                                in the fiscal year; minus
                                  (II) the amount that, in the 
                                absence of this subparagraph, 
                                would be required by 
                                subparagraph (A) or by section 
                                409(a)(10) to be remitted by 
                                the State in respect of the 
                                payment.
          (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):

                          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 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 at-risk 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 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 
                        fatherhood.--In this paragraph, the 
                        term ``activities promoting responsible 
                        fatherhood'' means the following:
                                  (I) Activities to promote 
                                marriage or sustain marriage 
                                through activities such as 
                                counseling, mentoring, 
                                disseminating information about 
                                the benefits of marriage and 2-
                                parent involvement for 
                                children, enhancing 
                                relationship skills, education 
                                regarding how to control 
                                aggressive behavior, 
                                disseminating information on 
                                the causes of domestic violence 
                                and child abuse, marriage 
                                preparation programs, 
                                premarital counseling, marital 
                                inventories, skills-based 
                                marriage education, financial 
                                planning seminars, including 
                                improving a family's ability to 
                                effectively manage family 
                                business affairs by means such 
                                as education, counseling, or 
                                mentoring on matters related to 
                                family finances, including 
                                household management, 
                                budgeting, banking, and 
                                handling of financial 
                                transactions and home 
                                maintenance, and divorce 
                                education and reduction 
                                programs, including mediation 
                                and counseling.
                                  (II) Activities to promote 
                                responsible parenting through 
                                activities such as counseling, 
                                mentoring, and mediation, 
                                disseminating information about 
                                good parenting practices, 
                                skills-based parenting 
                                education, encouraging child 
                                support payments, and other 
                                methods.
                                  (III) Activities to foster 
                                economic stability by helping 
                                fathers improve their economic 
                                status by providing activities 
                                such as work first services, 
                                job search, job training, 
                                subsidized employment, job 
                                retention, job enhancement, and 
                                encouraging education, 
                                including career-advancing 
                                education, dissemination of 
                                employment materials, 
                                coordination with existing 
                                employment services such as 
                                welfare-to-work programs, 
                                referrals to local employment 
                                training initiatives, and other 
                                methods.
                                  (IV) Activities to promote 
                                responsible fatherhood that are 
                                conducted through a contract 
                                with a nationally recognized, 
                                nonprofit fatherhood promotion 
                                organization, such as the 
                                development, promotion, and 
                                distribution of a media 
                                campaign to encourage the 
                                appropriate involvement of 
                                parents in the life of any 
                                child and specifically the 
                                issue of responsible 
                                fatherhood, and the development 
                                of a national clearinghouse to 
                                assist States and communities 
                                in efforts to promote and 
                                support marriage and 
                                responsible fatherhood.
                  (D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                year 2012 for expenditure in accordance with 
                this paragraph--
                          (i) $75,000,000 for awarding funds 
                        for the purpose of carrying out healthy 
                        marriage promotion activities; and
                          (ii) $75,000,000 for awarding funds 
                        for the purpose of carrying out 
                        activities promoting responsible 
                        fatherhood.
                If the Secretary makes an award under 
                subparagraph (B)(i) for fiscal year 2012, the 
                funds for such award shall be taken in equal 
                portion from the amounts appropriated under 
                clauses (i) and (ii).
                  (E) Preference.--In awarding funds under this 
                paragraph for fiscal year 2011, the Secretary 
                shall give preference to entities that were 
                awarded funds under this paragraph for any 
                prior fiscal year and that have demonstrated 
                the ability to successfully carry out the 
                programs funded under this paragraph.
          (3) Supplemental grant for population increases in 
        certain states.--
                  (A) In general.--Each qualifying State shall, 
                subject to subparagraph (F), be entitled to 
                receive from the Secretary--
                          (i) for fiscal year 1998 a grant in 
                        an amount equal to 2.5 percent of the 
                        total amount required to be paid to the 
                        State under former section 403 (as in 
                        effect during fiscal year 1994) for 
                        fiscal year 1994; and
                          (ii) for each of fiscal years 1999, 
                        2000, and 2001, a grant in an amount 
                        equal to the sum of--
                                  (I) the amount (if any) 
                                required to be paid to the 
                                State under this paragraph for 
                                the immediately preceding 
                                fiscal year; and
                                  (II) 2.5 percent of the sum 
                                of--
                                          (aa) the total amount 
                                        required to be paid to 
                                        the State under former 
                                        section 403 (as in 
                                        effect during fiscal 
                                        year 1994) for fiscal 
                                        year 1994; and
                                          (bb) the amount (if 
                                        any) required to be 
                                        paid to the State under 
                                        this paragraph for the 
                                        fiscal year preceding 
                                        the fiscal year for 
                                        which the grant is to 
                                        be made.
                  (B) Preservation of grant without increases 
                for states failing to remain qualifying 
                states.--Each State that is not a qualifying 
                State for a fiscal year specified in 
                subparagraph (A)(ii) but was a qualifying State 
                for a prior fiscal year shall, subject to 
                subparagraph (F), be entitled to receive from 
                the Secretary for the specified fiscal year, a 
                grant in an amount equal to the amount required 
                to be paid to the State under this paragraph 
                for the most recent fiscal year for which the 
                State was a qualifying State.
                  (C) Qualifying state.--
                          (i) In general.--For purposes of this 
                        paragraph, a State is a qualifying 
                        State for a fiscal year if--
                                  (I) the level of welfare 
                                spending per poor person by the 
                                State for the immediately 
                                preceding fiscal year is less 
                                than the national average level 
                                of State welfare spending per 
                                poor person for such preceding 
                                fiscal year; and
                                  (II) the population growth 
                                rate of the State (as 
                                determined by the Bureau of the 
                                Census) for the most recent 
                                fiscal year for which 
                                information is available 
                                exceeds the average population 
                                growth rate for all States (as 
                                so determined) for such most 
                                recent fiscal year.
                          (ii) State must qualify in fiscal 
                        year 1998.--Notwithstanding clause (i), 
                        a State shall not be a qualifying State 
                        for any fiscal year after 1998 by 
                        reason of clause (i) if the State is 
                        not a qualifying State for fiscal year 
                        1998 by reason of clause (i).
                          (iii) Certain states deemed 
                        qualifying states.--For purposes of 
                        this paragraph, a State is deemed to be 
                        a qualifying State for fiscal years 
                        1998, 1999, 2000, and 2001 if--
                                  (I) the level of welfare 
                                spending per poor person by the 
                                State for fiscal year 1994 is 
                                less than 35 percent of the 
                                national average level of State 
                                welfare spending per poor 
                                person for fiscal year 1994; or
                                  (II) the population of the 
                                State increased by more than 10 
                                percent from April 1, 1990 to 
                                July 1, 1994, according to the 
                                population estimates in 
                                publication CB94-204 of the 
                                Bureau of the Census.
                  (D) Definitions.--As used in this paragraph:
                          (i) Level of welfare spending per 
                        poor 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 
                appropriations.--If the amount appropriated 
                pursuant to this paragraph for a fiscal year 
                (or portion of a fiscal year) is less than the 
                total amount of payments otherwise required to 
                be made under this paragraph for the fiscal 
                year (or portion of the fiscal year), then the 
                amount otherwise payable to any State for the 
                fiscal year (or portion of the fiscal year) 
                under this paragraph shall be reduced by a 
                percentage equal to the amount so appropriated 
                divided by such total amount.
                  (G) Budget scoring.--Notwithstanding section 
                257(b)(2) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985, the baseline shall 
                assume that no grant shall be made under this 
                paragraph after fiscal year 2001.
                  (H) Reauthorization.--Notwithstanding any 
                other provision of this paragraph--
                          (i) any State that was a qualifying 
                        State under this paragraph for fiscal 
                        year 2001 or any prior fiscal year 
                        shall be entitled to receive from the 
                        Secretary for each of fiscal years 2002 
                        and 2003 a grant in an amount equal to 
                        the amount required to be paid to the 
                        State under this paragraph for the most 
                        recent fiscal year in which the State 
                        was a qualifying State;
                          (ii) subparagraph (G) shall be 
                        applied as if ``fiscal year 2011'' were 
                        substituted for ``fiscal year 2001'';
                          (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
                          [(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.]
          (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;
                                          (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.
          (5) Welfare-to-work grants.--
                  (A) Formula grants.--
                          (i) Entitlement.--A State shall be 
                        entitled to receive from the Secretary 
                        of Labor a grant for each fiscal year 
                        specified in subparagraph (H) of this 
                        paragraph for which the State is a 
                        welfare-to-work State, in an amount 
                        that does not exceed the lesser of--
                                  (I) 2 times the total of the 
                                expenditures by the State 
                                (excluding qualified State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(i)) and 
                                any expenditure described in 
                                subclause (I), (II), or (IV) of 
                                section 409(a)(7)(B)(iv)) 
                                during the period permitted 
                                under subparagraph (C)(vii) of 
                                this paragraph for the 
                                expenditure of funds under the 
                                grant for activities described 
                                in subparagraph (C)(i) of this 
                                paragraph; or
                                  (II) the allotment of the 
                                State under clause (iii) of 
                                this subparagraph for the 
                                fiscal year.
                          (ii) Welfare-to-work state.--A State 
                        shall be considered a welfare-to-work 
                        State for a fiscal year for purposes of 
                        this paragraph if the Secretary of 
                        Labor determines that the State meets 
                        the following requirements:
                                  (I) The State has submitted 
                                to the Secretary of Labor and 
                                the Secretary of Health and 
                                Human Services (in the form of 
                                an addendum to the State plan 
                                submitted under section 402) a 
                                plan which--
                                          (aa) describes how, 
                                        consistent with this 
                                        subparagraph, the State 
                                        will use any funds 
                                        provided under this 
                                        subparagraph during the 
                                        fiscal year;
                                          (bb) specifies the 
                                        formula to be used 
                                        pursuant to clause (vi) 
                                        to distribute funds in 
                                        the State, and 
                                        describes the process 
                                        by which the formula 
                                        was developed;
                                          (cc) contains 
                                        evidence that the plan 
                                        was developed in 
                                        consultation and 
                                        coordination with 
                                        appropriate entitites 
                                        in sub-State areas;
                                          (dd) contains 
                                        assurances by the 
                                        Governor of the State 
                                        that the private 
                                        industry council (and 
                                        any alternate agency 
                                        designated by the 
                                        Governor under item 
                                        (ee)) for a service 
                                        delivery area in the 
                                        State will coordinate 
                                        the expenditure of any 
                                        funds provided under 
                                        this subparagraph for 
                                        the benefit of the 
                                        service delivery area 
                                        with the expenditure of 
                                        the funds provided to 
                                        the State under section 
                                        403(a)(1);
                                          (ee) if the Governor 
                                        of the State desires to 
                                        have an agency other 
                                        than a private industry 
                                        council administer the 
                                        funds provided under 
                                        this subparagraph for 
                                        the benefit of 1 or 
                                        more service delivery 
                                        areas in the State, 
                                        contains an application 
                                        to the Secretary of 
                                        Labor for a waiver of 
                                        clause (vii)(I) with 
                                        respect to the area or 
                                        areas in order to 
                                        permit an alternate 
                                        agency designated by 
                                        the Governor to so 
                                        administer the funds; 
                                        and
                                          (ff) describes how 
                                        the State will ensure 
                                        that a private industry 
                                        council to which 
                                        information is 
                                        disclosed pursuant to 
                                        section 403(a)(5)(K) or 
                                        454A(f)(5) has 
                                        procedures for 
                                        safeguarding the 
                                        information and for 
                                        ensuring that the 
                                        information is used 
                                        solely for the purpose 
                                        described in that 
                                        section.
                                  (II) The State has provided 
                                to the Secretary of Labor an 
                                estimate of the amount that the 
                                State intends to expend during 
                                the period permitted under 
                                subparagraph (C)(vii) of this 
                                paragraph for the expenditure 
                                of funds under the grant 
                                (excluding expenditures 
                                described in section 
                                409(a)(7)(B)(iv) (other than 
                                subclause (III) thereof)) 
                                pursuant to this paragraph.
                                  (III) The State has agreed to 
                                negotiate in good faith with 
                                the Secretary of Health and 
                                Human Services with respect to 
                                the substance and funding of 
                                any evaluation under section 
                                413(j), and to cooperate with 
                                the conduct of any such 
                                evaluation.
                                  (IV) The State is an eligible 
                                State for the fiscal year.
                                  (V) The State certifies that 
                                qualified State expenditures 
                                (within the meaning of section 
                                409(a)(7)) for the fiscal year 
                                will be not less than the 
                                applicable percentage of 
                                historic State expenditures 
                                (within the meaning of section 
                                409(a)(7)) with respect to the 
                                fiscal year.
                          (iii) Allotments to welfare-to-work 
                        states.--
                                  (I) In general.--Subject to 
                                this clause, the allotment of a 
                                welfare-to-work State for a 
                                fiscal year shall be the 
                                available amount for the fiscal 
                                year, multiplied by the State 
                                percentage for the fiscal year.
                                  (II) Minimum allotment.--The 
                                allotment of a welfare-to-work 
                                State (other than Guam, the 
                                Virgin Islands, or American 
                                Samoa) for a fiscal year shall 
                                not be less than 0.25 percent 
                                of the available amount for the 
                                fiscal year.
                                  (III) Pro rata reduction.--
                                Subject to subclause (II), the 
                                Secretary of Labor shall make 
                                pro rata reductions in the 
                                allotments to States under this 
                                clause for a fiscal year as 
                                necessary to ensure that the 
                                total of the allotments does 
                                not exceed the available amount 
                                for the fiscal year.
                          (iv) Available amount.--As used in 
                        this subparagraph, the term ``available 
                        amount'' means, for a fiscal year, the 
                        sum of--
                                  (I) 75 percent of the sum 
                                of--
                                          (aa) the amount 
                                        specified in 
                                        subparagraph (H) for 
                                        the fiscal year, minus 
                                        the total of the 
                                        amounts reserved 
                                        pursuant to 
                                        subparagraphs (E), (F), 
                                        and (G) for the fiscal 
                                        year; and
                                          (bb) any amount 
                                        reserved pursuant to 
                                        subparagraph (E) for 
                                        the immediately 
                                        preceding fiscal year 
                                        that has not been 
                                        obligated; and
                                  (II) any available amount for 
                                the immediately preceding 
                                fiscal year that has not been 
                                obligated by a State, other 
                                than funds reserved by the 
                                State for distribution under 
                                clause (vi)(III) and funds 
                                distributed pursuant to clause 
                                (vi)(I) in any State in which 
                                the service delivery area is 
                                the State.
                          (v) State percentage.--As used in 
                        clause (iii), the term ``State 
                        percentage'' means, with respect to a 
                        fiscal year, \1/2\ of the sum of--
                                  (I) the percentage 
                                represented by the number of 
                                individuals in the State whose 
                                income is less than the poverty 
                                line divided by the number of 
                                such individuals in the United 
                                States; and
                                  (II) the percentage 
                                represented by the number of 
                                adults who are recipients of 
                                assistance under the State 
                                program funded under this part 
                                divided by the number of adults 
                                in the United States who are 
                                recipients of assistance under 
                                any State program funded under 
                                this part.
                          (vi) Procedure for distribution of 
                        funds within states.--
                                  (I) Allocation formula.--A 
                                State to which a grant is made 
                                under this subparagraph shall 
                                devise a formula for allocating 
                                not less than 85 percent of the 
                                amount of the grant among the 
                                service delivery areas in the 
                                State, which--
                                          (aa) determines the 
                                        amount to be allocated 
                                        for the benefit of a 
                                        service delivery area 
                                        in proportion to the 
                                        number (if any) by 
                                        which the population of 
                                        the area with an income 
                                        that is less than the 
                                        poverty line exceeds 
                                        7.5 percent of the 
                                        total population of the 
                                        area, relative to such 
                                        number for all such 
                                        areas in the State with 
                                        such an excess, and 
                                        accords a weight of not 
                                        less than 50 percent to 
                                        this factor;
                                          (bb) may determine 
                                        the amount to be 
                                        allocated for the 
                                        benefit of such an area 
                                        in proportion to the 
                                        number of adults 
                                        residing in the area 
                                        who have been 
                                        recipients of 
                                        assistance under the 
                                        State program funded 
                                        under this part 
                                        (whether in effect 
                                        before or after the 
                                        amendments made by 
                                        section 103(a) of the 
                                        Personal Responsibility 
                                        and Work Opportunity 
                                        Reconciliation Act of 
                                        1996 first applied to 
                                        the State) for at least 
                                        30 months (whether or 
                                        not consecutive) 
                                        relative to the number 
                                        of such adults residing 
                                        in the State; and
                                          (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 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.
                          (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, 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 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.
                                  (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 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 
                        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 poverty line.--For purposes of this 
                        paragraph, the number of individuals 
                        with an income that is less than the 
                        poverty line shall be determined for a 
                        fiscal year--
                                  (I) based on the methodology 
                                used by the Bureau of the 
                                Census to produce and publish 
                                intercensal poverty data for 
                                States and counties (or, in the 
                                case of Puerto Rico, the Virgin 
                                Islands, Guam, and American 
                                Samoa, other poverty data 
                                selected by the Secretary of 
                                Labor); and
                                  (II) using data for the most 
                                recent year for which such data 
                                is available before the 
                                beginning of the fiscal year.
                          (ii) Private industry council.--As 
                        used in this paragraph, the term 
                        ``private industry council'' means, 
                        with respect to a service delivery 
                        area, the private industry council or 
                        local workforce development board 
                        established for the local workforce 
                        development area pursuant to title I of 
                        the Workforce Innovation and 
                        Opportunity Act, as appropriate.
                          (iii) Service delivery area.--As used 
                        in this paragraph, the term ``service 
                        delivery area'' shall have the meaning 
                        given such term for purposes of the Job 
                        Training Partnership Act or.
                  (E) Funding for indian tribes.--1 percent of 
                the amount specified in subparagraph (H) for 
                fiscal year 1998 and $15,000,000 of the amount 
                so specified for fiscal year 1999 shall be 
                reserved for grants to Indian tribes under 
                section 412(a)(3).
                  (F) Funding for evaluations of welfare-to-
                work programs.--0.6 percent of the amount 
                specified in subparagraph (H) for fiscal year 
                1998 and $9,000,000 of the amount so specified 
                for fiscal year 1999 shall be reserved for use 
                by the Secretary to carry out section 413(j).
                  (G) Funding for evaluation of abstinence 
                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.
                          (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) 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 furnishing to a 
                private industry council the names, addresses, 
                telephone numbers, and identifying case number 
                information in the State program funded under 
                this part, of noncustodial parents residing in 
                the service delivery area of the private 
                industry council, for the purpose of 
                identifying and contacting noncustodial parents 
                regarding participation in the program under 
                this paragraph.
  (b) Contingency Fund.--
          (1) Establishment.--There is hereby established in 
        the Treasury of the United States a fund which shall be 
        known as the ``Contingency Fund for State Welfare 
        Programs'' (in this section referred to as the 
        ``Fund'').
          (2) Deposits into fund.--Out of any money in the 
        Treasury of the United States not otherwise 
        appropriated, there are appropriated for fiscal years 
        2013 and 2014 such sums as are necessary for payment to 
        the Fund in a total amount not to exceed $612,000,000 
        for each fiscal year, of which $2,000,000 shall be 
        reserved for carrying out the activities of the 
        commission established by the Protect our Kids Act of 
        2012 to reduce fatalities resulting from child abuse 
        and neglect.
          (3) Grants.--
                  (A) Provisional payments.--If an eligible 
                State submits to the Secretary a request for 
                funds under this paragraph during an eligible 
                month, the Secretary shall, subject to this 
                paragraph, pay to the State, from amounts 
                appropriated pursuant to paragraph (2), an 
                amount equal to the amount of funds so 
                requested.
                  (B) Payment priority.--The Secretary shall 
                make payments under subparagraph (A) in the 
                order in which the Secretary receives requests 
                for such payments.
                  (C) Limitations.--
                          (i) Monthly payment to a state.--The 
                        total amount paid to a single State 
                        under subparagraph (A) during a month 
                        shall not exceed \1/12\ of 20 percent 
                        of the State family assistance grant.
                          (ii) Payments to all states.--The 
                        total amount paid to all States under 
                        subparagraph (A) during fiscal year 
                        2011 and 2012, respectively, shall not 
                        exceed the total amount appropriated 
                        pursuant to paragraph (2) for each such 
                        fiscal year.
          (4) Eligible month.--As used in paragraph (3)(A), the 
        term ``eligible month'' means, with respect to a State, 
        a month in the 2-month period that begins with any 
        month for which the State is a needy State.
          (5) Needy state.--For purposes of paragraph (4), a 
        State is a needy State for a month if--
                  (A) the average rate of--
                          (i) total unemployment in such State 
                        (seasonally adjusted) for the period 
                        consisting of the most recent 3 months 
                        for which data for all States are 
                        published equals or exceeds 6.5 
                        percent; and
                          (ii) total unemployment in such State 
                        (seasonally adjusted) for the 3-month 
                        period equals or exceeds 110 percent of 
                        such average rate for either (or both) 
                        of the corresponding 3-month periods 
                        ending in the 2 preceding calendar 
                        years; or
                  (B) as determined by the Secretary of 
                Agriculture (in the discretion of the Secretary 
                of Agriculture), the monthly average number of 
                individuals (as of the last day of each month) 
                participating in the supplemental nutrition 
                assistance program in the State in the then 
                most recently concluded 3-month period for 
                which data are available exceeds by not less 
                than 10 percent the lesser of--
                          (i) the monthly average number of 
                        individuals (as of the last day of each 
                        month) in the State that would have 
                        participated in the supplemental 
                        nutrition assistance program in the 
                        corresponding 3-month period in fiscal 
                        year 1994 if the amendments made by 
                        titles IV and VIII of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996 had been in 
                        effect throughout fiscal year 1994; or
                          (ii) the monthly average number of 
                        individuals (as of the last day of each 
                        month) in the State that would have 
                        participated in the supplemental 
                        nutrition assistance program in the 
                        corresponding 3-month period in fiscal 
                        year 1995 if the amendments made by 
                        titles IV and VIII of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996 had been in 
                        effect throughout fiscal year 1995.
          (6) Annual reconciliation.--
                  (A) In general.--Notwithstanding paragraph 
                (3), if the Secretary makes a payment to a 
                State under this subsection in a fiscal year, 
                then the State shall remit to the Secretary, 
                within 1 year after the end of the first 
                subsequent period of 3 consecutive months for 
                which the State is not a needy State, an amount 
                equal to the amount (if any) by which--
                          (i) the total amount paid to the 
                        State under paragraph (3) of this 
                        subsection in the fiscal year; exceeds
                          (ii) the product of--
                                  (I) the Federal medical 
                                assistance percentage for the 
                                State (as defined in section 
                                1905(b), as such section was in 
                                effect on September 30, 1995);
                                  (II) the State's reimbursable 
                                expenditures for the fiscal 
                                year; and
                                  (III) \1/12\ times the number 
                                of months during the fiscal 
                                year for which the Secretary 
                                made a payment to the State 
                                under such paragraph (3).
                  (B) Definitions.--As used in subparagraph 
                (A):
                          (i) Reimbursable expenditures.--The 
                        term ``reimbursable expenditures'' 
                        means, with respect to a State and a 
                        fiscal year, the amount (if any) by 
                        which--
                                  (I) countable State 
                                expenditures for the fiscal 
                                year; exceeds
                                  (II) historic State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(iii)), 
                                excluding any amount expended 
                                by the State for child care 
                                under subsection (g) or (i) of 
                                section 402 (as in effect 
                                during fiscal year 1994) for 
                                fiscal year 1994.
                          (ii) Countable state expenditures.--
                        The term ``countable expenditures'' 
                        means, with respect to a State and a 
                        fiscal year--
                                  (I) the qualified State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(i) (other 
                                than the expenditures described 
                                in subclause (I)(bb) of such 
                                section)) under the State 
                                program funded under this part 
                                for the fiscal year; plus
                                  (II) any amount paid to the 
                                State under paragraph (3) 
                                during the fiscal year that is 
                                expended by the State under the 
                                State program funded under this 
                                part.
                  (C) Adjustment of state remittances.--
                          (i) In general.--The amount otherwise 
                        required by subparagraph (A) to be 
                        remitted by a State for a fiscal year 
                        shall be increased by the lesser of--
                                  (I) the total adjustment for 
                                the fiscal year, multiplied by 
                                the adjustment percentage for 
                                the State for the fiscal year; 
                                or
                                  (II) the unadjusted net 
                                payment to the State for the 
                                fiscal year.
                          (ii) Total adjustment.--As used in 
                        clause (i), the term ``total 
                        adjustment'' means--
                                  (I) in the case of fiscal 
                                year 1998, $2,000,000;
                                  (II) in the case of fiscal 
                                year 1999, $9,000,000;
                                  (III) in the case of fiscal 
                                year 2000, $16,000,000; and
                                  (IV) in the case of fiscal 
                                year 2001, $13,000,000.
                          (iii) Adjustment percentage.--As used 
                        in clause (i), the term ``adjustment 
                        percentage'' means, with respect to a 
                        State and a fiscal year--
                                  (I) the unadjusted net 
                                payment to the State for the 
                                fiscal year; divided by
                                  (II) the sum of the 
                                unadjusted net payments to all 
                                States for the fiscal year.
                          (iv) Unadjusted net payment.--As used 
                        in this subparagraph, the term, 
                        ``unadjusted net payment'' means with 
                        respect to a State and a fiscal year--
                                  (I) the total amount paid to 
                                the State under paragraph (3) 
                                in the fiscal year; minus
                                  (II) the amount that, in the 
                                absence of this subparagraph, 
                                would be required by 
                                subparagraph (A) or by section 
                                409(a)(10) to be remitted by 
                                the State in respect of the 
                                payment.
          (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.

           *       *       *       *       *       *       *

                         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.
    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, wage-paying, 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 Sanchez.

                                  [all]
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