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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2015 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2015

  To help individuals receiving assistance under means-tested welfare 
   programs obtain self-sufficiency, to provide information on total 
   spending on means-tested welfare programs, to provide an overall 
    spending limit on means-tested welfare programs, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 11, 2014

Mr. Lee (for himself, Mr. Cruz, Mr. Vitter, and Mr. Inhofe) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL

 
  To help individuals receiving assistance under means-tested welfare 
   programs obtain self-sufficiency, to provide information on total 
   spending on means-tested welfare programs, to provide an overall 
    spending limit on means-tested welfare programs, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare Reform and Upward Mobility 
Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
  TITLE I--MODIFICATIONS TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

Sec. 101. Work requirements.
Sec. 102. Termination of benefit increase.
  TITLE II--REPORTING OF MEANS-TESTED WELFARE SPENDING IN PRESIDENT'S 
                           BUDGET SUBMISSION

Sec. 201. Additional information in President's budget submission.
       TITLE III--AGGREGATE CAP FOR MEANS-TESTED WELFARE SPENDING

Sec. 301. Definition of means-tested welfare spending.
Sec. 302. Reports to budget committees.
Sec. 303. Content of concurrent resolutions on the budget.
Sec. 304. Allocations of means-tested welfare spending.
Sec. 305. Reconciliation.
              TITLE IV--GRANTS TO PROMOTE SELF-SUFFICIENCY

Sec. 401. Grants to States.
              TITLE V--PROHIBITION ON FUNDING OF ABORTION

Sec. 501. Prohibition on funding for abortions.
Sec. 502. Prohibition on funding for health benefits plans that cover 
                            abortion.
Sec. 503. Prohibition on tax benefits relating to abortion.
Sec. 504. Construction relating to separate coverage.
Sec. 505. Construction relating to the use of non-Federal funds for 
                            health coverage.
Sec. 506. Treatment of abortions related to rape, incest, or preserving 
                            the life of the mother.

  TITLE I--MODIFICATIONS TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

SEC. 101. WORK REQUIREMENTS.

    (a) Declaration of Policy.--Section 2 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011) is amended by adding at the end the following: 
``Congress further finds that it should also be the purpose of the 
supplemental nutrition assistance program to increase employment, to 
encourage healthy marriage, and to promote prosperous self-sufficiency, 
which means the ability of households to maintain an income above the 
poverty level without services and benefits from the Federal 
Government.''.
    (b) Definition of Food.--Section 3(k) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2012(k)) is amended by inserting before the period at 
the end the following: ``, except that a food, food product, meal, or 
other item described in this subsection shall be considered a food 
under this Act only if it is a bare essential (as determined by the 
Secretary)''.
    (c) Other Definitions.--Section 3 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2012) is amended by adding at the end the following:
    ``(w) Able-Bodied, Work-Capable Adult.--
            ``(1) In general.--The term `able-bodied, work-capable 
        adult' means an individual who--
                    ``(A) is more than 18, and less than 63, years of 
                age;
                    ``(B) is not physically or mentally incapable of 
                work; and
                    ``(C) is not the full-time caretaker of a disabled 
                adult dependent.
            ``(2) Physically or mentally incapable of work.--For 
        purposes of paragraph (1)(B), the term `physically or mentally 
        incapable of work' means an individual who--
                    ``(A) currently receives benefits under the 
                supplemental security income program established under 
                title XVI of the Social Security Act (42 U.S.C. 1381 et 
                seq.) or another program that provides recurring 
                benefits to individuals because the individual is 
                disabled and unable to work; or
                    ``(B) has been medically certified as physically or 
                mentally incapable of work and who has a credible 
                pending application for enrollment in the supplemental 
                security income program established under title XVI of 
                the Social Security Act (42 U.S.C. 1381 et seq.) or 
                another program that provides recurring benefits to 
                individuals because the individual is disabled and 
                unable to work.
    ``(x) Approved Offsite Work Activation.--The term `approved offsite 
work activation' means--
            ``(1) online job preparation and training programs that are 
        approved and monitored by the State agency; or
            ``(2) job search activities that are approved by the State 
        agency and monitored by the State to ensure that an appropriate 
        number of job applications and employer contacts are performed.
    ``(y) Family Head.--The term `family head' means--
            ``(1) a biological parent who is lawfully present in the 
        United States and resides within a household with 1 or more 
        dependent children who are the biological offspring of the 
        parent; or
            ``(2) in the absence of a biological parent, a step parent, 
        adoptive parent, guardian, or adult relative who resides with 
        and provides care to the 1 or more children and is lawfully 
        present in the United States.
    ``(z) Family Unit.--The term `family unit' means--
            ``(1) an adult residing without dependent children;
            ``(2) a single-headed family with dependent children; or
            ``(3) a married couple family with dependent children.
    ``(aa) Family With Dependent Children.--
            ``(1) In general.--The term `family with dependent 
        children' means a unit consisting of a family head, 1 or more 
        dependent children, and, if applicable, the married spouse of 
        the family head, all of whom share meals and reside within a 
        single household.
            ``(2) Multiple families in a household.--There may be more 
        than 1 family with dependent children in a single household.
    ``(bb) Married Couple Family With Dependent Children.--The term 
`married couple family with dependent children' means a family with 
dependent children that has both a family head and the married spouse 
of the family head residing with the family.
    ``(cc) Married Spouse of the Family Head.--The term `married spouse 
of the family head' means the lawfully married spouse of the family 
head who--
            ``(1) resides with the family head and dependent children; 
        and
            ``(2) is lawfully present in the United States.
    ``(dd) Member of a Family.--The term `member of a family' means the 
family head, married spouse of the family head if present, and all 
dependent children within a family with dependent children.
    ``(ee) Onsite Work Activation.--
            ``(1) In general.--The term `onsite work activation' 
        means--
                    ``(A) supervised job search;
                    ``(B) community service activities;
                    ``(C) education and job training for individuals 
                who are family heads or married spouses of family 
                heads;
                    ``(D) workfare under section 20; or
                    ``(E) drug or alcohol treatment.
            ``(2) Supervised job search.--For purposes of paragraph 
        (1)(A), the term `supervised job search' means a job search 
        program that has the following characteristics:
                    ``(A) The job search occurs at an official location 
                where the presence and activity of the recipient can be 
                directly observed, supervised, and monitored.
                    ``(B) The recipient's entry, time onsite, and exit 
                from the official job search location are recorded in a 
                manner that prevents fraud.
                    ``(C) The recipient is expected to remain and 
                undertake job search activities at the job search 
                center.
                    ``(D) The quantity of time the recipient is 
                observed and monitored engaging in job search at the 
                official location is recorded for purposes of 
                compliance with section 29.
    ``(ff) Penalty Period.--
            ``(1) In general.--The term `penalty period' means either 
        of 2 periods of 6 consecutive months during each fiscal year.
            ``(2) First penalty period.--The first penalty period of 
        each fiscal year shall be the 6-month period beginning on 
        October 1.
            ``(3) Second penalty period.--The second penalty period of 
        each fiscal year shall be the 6-month period beginning on April 
        1.
            ``(4) Adjustment.--The entire supplemental nutrition 
        assistance program 6-month funding allotment of a State during 
        a penalty period shall be adjusted in response to the 
        performance of the work activation program of the State during 
        previous performance measurement periods.
    ``(gg) Performance Measurement Period.--
            ``(1) In general.--The term `performance measurement 
        period' means either of 2 periods of 6 consecutive months 
        during each fiscal year.
            ``(2) First performance measurement period.--The first 
        performance measurement period of each fiscal year shall be the 
        6-month period beginning on October 1.
            ``(3) Second performance measurement period.--The second 
        performance measurement period of each fiscal year shall be the 
        6-month period beginning on April 1.
    ``(hh) Program-Eligible Adult Without Dependent Children.--The term 
`program-eligible adult without dependent children' means a work-
capable adult without dependent children who--
            ``(1) receives program benefits for 1 month; and
            ``(2) has maintained less than 120 hours of paid employment 
        during that month.
    ``(ii) Program-Eligible Family Unit.--The term `program-eligible 
family unit' means--
            ``(1) a program-eligible adult without dependent children;
            ``(2) a program-eligible single-headed family with 
        dependent children; or
            ``(3) a program-eligible married couple with dependent 
        children.
    ``(jj) Program-Eligible Married Couple With Dependent Children.--
The term `program-eligible married couple with dependent children' 
means a work-capable married couple family with dependent children 
that--
            ``(1) receives program benefits for 1 month; and
            ``(2) has maintained less than 120 hours of paid employment 
        between the family head and the married spouse of the family 
        head, summed together and counted jointly, during the month.
    ``(kk) Program-Eligible Single-Headed Family With Dependent 
Children.--The term `program-eligible single-headed family with 
dependent children' means a work-capable single-headed family with 
dependent children that--
            ``(1) receives program benefits for 1 month; and
            ``(2) has a family head who has maintained less than 120 
        hours of paid employment during that month.
    ``(ll) Single-Headed Family With Dependent Children.--The term 
`single-headed family with dependent children' means a family with 
dependent children that--
            ``(1) contains a family head residing with the family; but
            ``(2) does not have a married spouse of the family head 
        residing with the family.
    ``(mm) State Share of Work-Capable Family Units in Calendar Year 
2010.--The term `State share of work-capable family units in calendar 
year 2010' for each State means the quotient obtained by dividing--
            ``(1) the average monthly number of work-capable family 
        units in the State during calendar year 2010; by
            ``(2) the average monthly number of work-capable family 
        units in all 50 States and the District of Columbia during 
        calendar year 2010.
    ``(nn) Total Family Units Eligible for Participation in Work 
Activation.--The term `total family units eligible for participation in 
work activation' in a month means, in the State in that month, the sum 
of--
            ``(1) program-eligible adults without dependent children;
            ``(2) program-eligible single-headed families with 
        dependent children; and
            ``(3) program-eligible married couples with dependent 
        children.
    ``(oo) Work Activation.--The term `work activation' means--
            ``(1) onsite work activation; and
            ``(2) approved offsite work activation.
    ``(pp) Work-Capable Adult Without Dependent Children.--The term 
`work-capable adult without dependent children' means an individual 
who--
            ``(1) is an able-bodied, work-capable adult; and
            ``(2) is not a family head or the married spouse of a 
        family head.
    ``(qq) Work-Capable Married Couple Family With Dependent 
Children.--The term `work-capable married couple family with dependent 
children' means a married couple with dependent children that contains 
at least 1 work-capable, able-bodied adult who is--
            ``(1) the family head; or
            ``(2) the married spouse of the family head.
    ``(rr) Work-Capable Single-Headed Family With Dependent Children.--
The term `work-capable single-headed family with dependent children' 
means a single-headed family with dependent children that has a family 
head who is an able-bodied, work-capable adult.''.
    (d) Conditions of Participation.--Section 6 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015) is amended by striking subsection 
(d) and inserting the following:
    ``(d) Conditions of Participation.--
            ``(1) Work requirements.--
                    ``(A) In general.--No able-bodied, work-capable 
                adult shall be eligible to participate in the 
                supplemental nutrition assistance program if the 
                individual--
                            ``(i) refuses, at the time of application 
                        and every 12 months thereafter, to register for 
                        employment in a manner prescribed by the 
                        Secretary;
                            ``(ii) refuses without good cause to accept 
                        an offer of employment, at a site or plant not 
                        subject to a strike or lockout at the time of 
                        the refusal, at a wage not less than the higher 
                        of--
                                    ``(I) the applicable Federal or 
                                State minimum wage; or
                                    ``(II) 80 percent of the wage that 
                                would have applied had the minimum 
                                hourly rate under section 6(a)(1) of 
                                the Fair Labor Standards Act of 1938 
                                (29 U.S.C. 206(a)(1)) been applicable 
                                to the offer of employment;
                            ``(iii) refuses without good cause to 
                        provide a State agency with sufficient 
                        information to allow the State agency to 
                        determine the employment status or the job 
                        availability of the individual; or
                            ``(iv) voluntarily--
                                    ``(I) quits a job; or
                                    ``(II) reduces work effort and, 
                                after the reduction, is working less 
                                than 30 hours per week, unless another 
                                adult in the same family unit increases 
                                employment at the same time by an 
                                amount that is at least equal to the 
                                reduction in work effort by the first 
                                adult.
                    ``(B) Family unit ineligibility.--If an able-
                bodied, work-capable adult is ineligible to participate 
                in the supplemental nutrition assistance program 
                because of subparagraph (A), no other member of the 
                family unit to which that adult belongs shall be 
                eligible to participate.
                    ``(C) Duration of ineligibility.--An able-bodied, 
                work-capable adult who becomes ineligible under 
                subparagraph (A), and members of the family unit who 
                become ineligible under subparagraph (B), shall remain 
                ineligible for 3 months after the date on which 
                ineligibility began.
                    ``(D) Restoration of eligibility.--At the end of 
                the 3-month period of ineligibility under subparagraph 
                (c), members of a work-capable family unit may have 
                their eligibility to participate in the supplemental 
                nutrition assistance program restored, if--
                            ``(i) the family unit is no longer a work-
                        capable family unit; or
                            ``(ii) the adult members of the family unit 
                        begin and maintain any combination of paid 
                        employment and work activation sufficient to 
                        meet the appropriate standards for resumption 
                        of benefits in section 29(c)(2).
            ``(2) Strike against a government.--For the purpose of 
        subparagraph (A)(iv), an employee of the Federal Government, a 
        State, or a political subdivision of a State, who is dismissed 
        for participating in a strike against the Federal Government, 
        the State, or the political subdivision of the State shall be 
        considered to have voluntarily quit without good cause.
            ``(3) Striking workers ineligible.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C) and notwithstanding any other 
                provision of law, no member of a family shall be 
                eligible to participate in the supplemental nutrition 
                assistance program at any time that any able-bodied, 
                work-capable adult member of the household is on strike 
                as defined in section 501 of the Labor Management 
                Relations Act, 1947 (29 U.S.C. 142), because of a labor 
                dispute (other than a lockout) as defined in section 2 
                of the National Labor Relations Act (29 U.S.C. 152).
                    ``(B) Prior eligibility.--
                            ``(i) In general.--Subject to clause (ii), 
                        a family unit shall not lose eligibility to 
                        participate in the supplemental nutrition 
                        assistance program as a result of 1 of the 
                        members of the family unit going on strike if 
                        the household was eligible immediately prior to 
                        the strike.
                            ``(ii) No increased allotment.--A family 
                        unit described in clause (i) shall not receive 
                        an increased allotment as the result of a 
                        decrease in the income of the 1 or more 
                        striking members of the household.
                    ``(C) Refusal to accept employment.--Ineligibility 
                described in subparagraph (A) shall not apply to any 
                family unit that does not contain a member on strike, 
                if any of the members of the family unit refuses to 
                accept employment at a plant or site because of a 
                strike or lockout.''.
    (e) Eligibility of Students With Dependent Children.--Section 6(e) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)) is amended by 
striking paragraph (8) and inserting the following:
            ``(8) is enrolled full-time in an institution of higher 
        education, as determined by the institution, and--
                    ``(A) is a single parent with responsibility for 
                the care of a dependent child under 12 years of age; or
                    ``(B) is a family head or married spouse of a 
                family head in a married couple family with dependent 
                children and has a dependent child under age 12 
                residing in the home.''.
    (f) Work Requirement.--Section 6 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2015) is amended by striking subsection (o) and 
inserting the following:
    ``(o) Fulfillment of Employment and Work Activation Requirements.--
            ``(1) In general.--If 1 or more adults within a program-
        eligible family unit are required by the State agency to 
        participate in work activation under section 29, no member of 
        the family unit shall be eligible for supplemental nutrition 
        assistance benefits unless the relevant 1 or more adults fully 
        comply with the work activation standards.
            ``(2) Sanctions and resumption of benefits.--If 1 or more 
        adults within a program-eligible family unit who are required 
        by the State agency to participate in work activation under 
        section 29 during a given month fail to comply with the work 
        activation standards, benefits for all members of the family 
        unit--
                    ``(A) shall be terminated in accordance with 
                section 29(c)(1); and
                    ``(B) may be resumed upon compliance with section 
                29(c)(2).''.
    (g) Exclusion.--Section 6 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015) is amended by adding at the end the following:
    ``(r) Minor Children.--No child less than age 18 years of age may 
participate in the supplemental nutrition assistance program unless the 
child is a member of a family with dependent children and resides with 
an adult who is--
            ``(1) the family head of the same family of which the child 
        is also a member;
            ``(2) eligible to participate, and participating, in the 
        supplemental nutrition assistance program as a member of the 
        same household as the child; and
            ``(3) lawfully residing, and eligible to work, in the 
        United States.''.
    (h) Hearing and Determination.--Section 11(e)(10) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2020(e)(10)) is amended by striking ``: 
Provided'' and all that follows through ``hearing;'' at the end and 
inserting a semicolon.
    (i) Work Requirements and Activation Program.--The Food and 
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is amended by adding at 
the end the following:

``SEC. 29. WORK REQUIREMENTS AND ACTIVATION PROGRAM.

    ``(a) Work Activation Standards.--
            ``(1) In general.--Subject to paragraph (3), a family unit 
        with adult members that is required to participate in work 
        activation under subsection (e) during a full month of 
        participation in the supplemental nutrition assistance program 
        shall fulfill the following levels of work activation during 
        that month:
                    ``(A) Work activation performance level for 
                program-eligible adult without dependent children.--
                Each program-eligible adult without dependent children 
                who is required to participate in work activation by a 
                State agency under subsection (e) for a particular 
                month shall be required to perform a minimum of 36 
                hours of work activation for that month, including at 
                least--
                            ``(i) a minimum of 16 hours of supervised 
                        onsite work activation; and
                            ``(ii) a minimum of 20 additional hours 
                        of--
                                    ``(I) onsite work activation;
                                    ``(II) approved offsite work 
                                activation; or
                                    ``(III) a combination of both.
                    ``(B) Work activation performance levels for 
                program-eligible single parent families with dependent 
                children.--Work-capable adult family heads in program-
                eligible single parent families with dependent children 
                who are required by a State agency to participate in 
                work activation under subsection (e) shall be required 
                to perform a minimum of 72 hours of work activation per 
                month, including at least--
                            ``(i) a minimum of 32 hours of supervised 
                        onsite work activation; and
                            ``(ii) a minimum of 40 additional hours 
                        of--
                                    ``(I) onsite work activation;
                                    ``(II) approved offsite work 
                                activation; or
                                    ``(III) a combination of both.
                    ``(C) Work activation performance levels for 
                program-eligible married couples with dependent 
                children.--
                            ``(i) In general.--Subject to clause (ii), 
                        each program-eligible married couple with 
                        dependent children that is required by a State 
                        agency to participate in work activation under 
                        subsection (e) shall be required to perform a 
                        minimum of 72 hours of work activation per 
                        month, including at least--
                                    ``(I) a minimum of 32 hours of 
                                supervised onsite work activation; and
                                    ``(II) a minimum of 40 additional 
                                hours of--
                                            ``(aa) onsite work 
                                        activation;
                                            ``(bb) approved offsite 
                                        work activation; or
                                            ``(cc) a combination of 
                                        both.
                            ``(ii) Requirements.--
                                    ``(I) Single joint obligation.--The 
                                72-hour requirement under clause (i) 
                                shall be a single joint obligation for 
                                the married couple as a whole in which 
                                the activities of both married partners 
                                shall be combined together and counted 
                                jointly.
                                    ``(II) Options.--The work 
                                activation requirement for a work-
                                capable married couple family with 
                                dependent children may be fulfilled 
                                by--
                                            ``(aa) 72 or more hours of 
                                        appropriate activity by the 
                                        family head;
                                            ``(bb) 72 or more hours of 
                                        appropriate activity by the 
                                        married spouse of the family 
                                        head; or
                                            ``(cc) the combined 
                                        activity of the family head and 
                                        married spouse of the family 
                                        head which when added together 
                                        equal or exceed 72 hours.
                    ``(D) No separate work activation requirement.--
                Neither the family head nor the married spouse of the 
                family in a married couple family with dependent 
                children shall be subject to a separate work activation 
                requirement as individuals.
            ``(2) Limitation on combined hours of work activation and 
        paid employment.--
                    ``(A) In general.--Notwithstanding subparagraphs 
                (A), (B), and (C) of paragraph (1), a State may count 
                any program-eligible family unit as fulfilling the full 
                engagement requirement of the family unit for a month, 
                for purposes of paragraphs (3) and (4) of subsection 
                (e), if the combined sum of paid employment and work 
                activation by work-capable adults within the family 
                unit in that month equals at least 160 hours.
                    ``(B) Result of fulfillment.--If the combined sum 
                of hours of paid employment and work activation by 
                work-capable individuals within a program-eligible 
                family unit is at least 160 hours in a given month--
                            ``(i) the family unit has fulfilled the 
                        Federal work activation standards of the family 
                        unit for that month; and
                            ``(ii) the State agency need not require 
                        members of the family unit to perform 
                        additional work activation during that month.
    ``(b) Pro Rata Reduction in Employment and Work Activation Standard 
During a Partial Month.--
            ``(1) In general.--A program-eligible family unit shall be 
        subject to a pro-rated work activation standard, if the family 
        unit--
                    ``(A) receives a pro-rated monthly allotment during 
                the initial month of enrollment under section 8(c); and
                    ``(B) is required by the State to participate in 
                the work activation program during that month.
            ``(2) Pro-rated work activation standard.--For purposes of 
        paragraph (1), the term `pro-rated work activation standard' 
        means a standard that equals a number of hours of work activity 
        of a family unit that bears the same proportion to the work 
        activation requirement for the family unit for a full month 
        under subsection (a) as the proportion that--
                    ``(A) the pro-rated monthly allotment received by 
                the household for the partial month under section 8(c); 
                bears to
                    ``(B) the full allotment the same household would 
                receive for a complete month.
            ``(3) Requirement.--For purposes of fulfilling the pro-
        rated work activation requirement during an initial month of 
        enrollment in the supplemental nutrition assistance program, 
        only those hours of adult work activation that occurred during 
        the portion of the month in which the family unit was 
        participating in the supplemental nutrition assistance program 
        shall be counted.
    ``(c) Sanction for Noncompliance by Family Units.--
            ``(1) Standard.--
                    ``(A) In general.--If 1 or more members of a 
                program-eligible family unit are required to 
                participate in the work activation program under 
                subsection (e) in a calendar month and 1 or more 
                individuals fail to fulfill the work activation 
                standards under subsection (a) or (b) for that month--
                            ``(i) no member of the family unit shall be 
                        eligible to receive supplemental nutrition 
                        assistance benefits during the subsequent 
                        calendar month; and
                            ``(ii) except as provided in subparagraph 
                        (B), the State agency shall not provide the 
                        supplemental nutrition assistance benefit 
                        payment for all members of the family unit that 
                        otherwise would have been issued at the 
                        beginning of the next month.
                    ``(B) Administrative delay of sanction.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), if it is 
                        administratively infeasible for the State to 
                        not provide the supplemental nutrition 
                        assistance benefit that would be issued at the 
                        beginning of the first month after the month of 
                        noncompliance, the State shall not provide the 
                        payment to all members of the family unit that 
                        otherwise would have been made at the beginning 
                        of the second month after the month of 
                        noncompliance.
                            ``(ii) Deadline.--The sanction of benefits 
                        shall occur not later than 32 days after the 
                        end of the month of noncompliance.
                            ``(iii) Relationship of payments to members 
                        of the family unit.--At least 1 monthly payment 
                        to all members of the family unit shall be not 
                        provided for each month of noncompliance under 
                        subparagraph (A).
            ``(2) Resumption of benefits after sanction.--
                    ``(A) In general.--If a family unit has had the 
                monthly benefit of the family unit not provided due to 
                noncompliance with a work activation requirement under 
                paragraph (1), the family unit shall not be eligible to 
                receive future benefits under the supplemental 
                nutrition assistance program until--
                            ``(i) the 1 or more work-capable members of 
                        the family unit have--
                                    ``(I) successfully participated in 
                                a work activation program under 
                                subsection (e) for at least 4 
                                consecutive, subsequent weeks; and
                                    ``(II) fulfilled the work 
                                activation standard for the family unit 
                                for that same 4-week period by 
                                maintaining an hourly total of 
                                participation in work activation that 
                                is at least equal to the appropriate 
                                monthly totals for hours of 
                                participation provided in subsection 
                                (a);
                            ``(ii) the family unit no longer contains 
                        any able-bodied, work-capable adults; or
                            ``(iii) the family unit maintains at least 
                        120 hours of paid employment during the 4-week 
                        period.
                    ``(B) Limitation.--The resumed benefits provided 
                under subparagraph (A) shall not restore or compensate 
                for the benefits that were not provided due to the 
                sanction imposed under paragraph (1).
    ``(d) Work Activation Is Not Employment.--Participation in work 
activation activities under this section shall not be--
            ``(1) considered to be employment; or
            ``(2) subject to any law pertaining to wages, compensation, 
        hours, or conditions of employment under any law administered 
        by the Secretary of Labor.
    ``(e) Work Activation Program.--
            ``(1) Program.--Each State participating in the 
        supplemental nutrition assistance program shall carry out a 
        work activation program.
            ``(2) Purpose.--
                    ``(A) In general.--The goals of each work 
                activation program shall be--
                            ``(i) to encourage and assist able-bodied, 
                        work-capable adult recipients of supplemental 
                        nutrition assistance to obtain paid employment;
                            ``(ii) to reduce dependence on government 
                        assistance; and
                            ``(iii) to ensure that able-bodied, work-
                        capable adult recipients of supplemental 
                        nutrition assistance make a contribution to 
                        society and the taxpayers in exchange for 
                        assistance received.
                    ``(B) Requirement.--To accomplish the goals 
                described in subparagraph (A), each State shall require 
                able-bodied, work-capable adult recipients of 
                supplemental nutrition assistance who are unemployed or 
                under-employed to engage in work activation.
            ``(3) Required state work activation participation rates.--
                    ``(A) In general.--Subject to subparagraph (D), 
                each State that receives supplemental nutrition 
                assistance program funding shall be required to meet, 
                for the work activation programs of the State--
                            ``(i) a work activation participation rate 
                        for work-capable adults without dependent 
                        children, as described in subparagraph (B); and
                            ``(ii) a total recipient work activity 
                        participation rate, as described in 
                        subparagraph (C).
                    ``(B) Participation rate for work-capable without 
                dependent children.--The average monthly percent of 
                program-eligible work-capable without dependent 
                children who shall be required to maintain full 
                engagement in work activation under subparagraph (A)(i) 
                shall be--
                            ``(i) for each performance measurement 
                        period in fiscal year 2014, 50 percent of all 
                        program-eligible adults without dependent 
                        children; and
                            ``(ii) for each performance measurement 
                        period in fiscal year 2015 and each subsequent 
                        fiscal year, 85 percent of all program-eligible 
                        adults without dependent children who are 
                        eligible for work activation.
                    ``(C) Overall participation rate for all program-
                eligible recipients.--The average monthly number of 
                program-eligible family units who shall be required to 
                maintain full engagement in work activation in a given 
                month shall be--
                            ``(i) for each performance measurement 
                        period in fiscal year 2015, the lesser of--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) the State share of 
                                        work-capable family units in 
                                        calendar year 2010; by
                                            ``(bb) 2,000,000; or
                                    ``(II) 85 percent of the average 
                                monthly number of total program-
                                eligible family units in the State; and
                            ``(ii) for each performance measurement 
                        period in fiscal year 2016 and each subsequent 
                        fiscal year, the lesser of--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) the State share of 
                                        work-capable family units in 
                                        calendar year 2010; by
                                            ``(bb) 4,000,000; or
                                    ``(II) 85 percent of the average 
                                monthly number of total family units 
                                eligible for participation in work 
                                activation in the State in the calendar 
                                year.
                    ``(D) Limitation.--If the total number of 
                individuals in a State who are required to participate 
                in work activation under the work-capable adults 
                without dependent children work activation requirement 
                described in subparagraph (B) is greater than the 
                number of individuals in the State who are required to 
                participate under the overall participation rate 
                requirement described in subparagraph (C), the State 
                shall be required to fulfill only the requirement for 
                work-capable adults without dependent children.
            ``(4) Counting full engagement in work activation for 
        purposes of measuring state compliance with participation 
        rates.--
                    ``(A) In general.--For purposes of determining the 
                compliance of a State with the participation rate 
                standards in paragraph (3), a State shall count in each 
                month the number of program-eligible family units that 
                maintained full engagement in work activation in that 
                month.
                    ``(B) Full engagement.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), a family unit shall be 
                        counted as having maintained full engagement in 
                        work activation in a given month if the family 
                        unit was--
                                    ``(I) a program-eligible family 
                                unit that performed sufficient work 
                                activation in the month to meet the 
                                work activation standards provided in 
                                subsection (a) or (b);
                                    ``(II) a family unit that did not 
                                qualify for supplemental nutrition 
                                assistance benefits in a current month 
                                because of a prior sanction but that 
                                qualified for a resumption of benefits 
                                due to work activation performed in the 
                                month that meets the standards provided 
                                in subsection (c)(2); or
                                    ``(III) a program-eligible family 
                                unit that--
                                            ``(aa) received 
                                        supplemental nutrition 
                                        assistance benefits in a given 
                                        month;
                                            ``(bb) was required by a 
                                        State agency to participate in 
                                        work activation in that month;
                                            ``(cc) failed to perform 
                                        sufficient work activation in 
                                        that month to meet the 
                                        standards in subsection (a) or 
                                        (b); and
                                            ``(dd) was sanctioned by an 
                                        elimination of supplemental 
                                        nutrition assistance benefits 
                                        in the 1 or more immediately 
                                        succeeding months, in 
                                        accordance with subsection 
                                        (c)(1).
                            ``(ii) Limitation.--
                                    ``(I) In general.--For purposes of 
                                clause (i)(III), a family unit that was 
                                required to participate in work 
                                activation but failed to perform 
                                sufficient activity to meet the 
                                standard shall be counted as having 
                                maintained full engagement in work 
                                activation only in the first month of 
                                noncompliance.
                                    ``(II) Subsequent months.--Except 
                                as provided in clause (i)(II), the 
                                family unit shall not be counted as 
                                maintaining full engagement in work 
                                activation in any subsequent month in 
                                which the family unit was subject to 
                                the sanction for noncompliance.
                    ``(C) Benefits previously terminated.--Except as 
                provided in subparagraph (B)(i)(II) concerning family 
                units that qualify for resumption of benefits, a family 
                unit that does not receive supplemental nutrition 
                assistance benefits in a given month because the 
                benefits of the family unit have been previously 
                terminated in accordance with subsection (c)(1) shall 
                not be counted in that month--
                            ``(i) as a family unit that has maintained 
                        full engagement in work activation; or
                            ``(ii) as a program-eligible family unit.
            ``(5) Penalties for inadequate state performance.--
                    ``(A) Requirement.--
                            ``(i) In general.--Beginning in fiscal year 
                        2015 and for each subsequent fiscal year, each 
                        State shall count the monthly average number of 
                        program-eligible family units that maintain 
                        full engagement in work activation during each 
                        performance measurement period.
                            ``(ii) Reduction in funding.--If the 
                        monthly average number of program-eligible 
                        family units that maintain full engagement in a 
                        State is not sufficient to fulfill 1 or both of 
                        the relevant performance standards in 
                        subparagraphs (B) and (C) of paragraph (3) 
                        during a performance measurement period 
                        (subject to the limitation in paragraph 
                        (3)(D)), the Federal supplemental nutrition 
                        assistance program funding for the State shall 
                        be reduced for the entire penalty period that 
                        commences 12 months after the commencement of 
                        the relevant performance measurement period.
                    ``(B) Schedule of funding reductions.--
                            ``(i) In general.--The funding reduction 
                        for a State under subparagraph (A) shall be 
                        determined by the number of consecutive 
                        performance measurement periods during which 
                        the State has failed to meet 1 or both of the 
                        relevant work activation participation rates 
                        under subparagraphs (B) and (C) of paragraph 
                        (3) (subject to paragraph (3)(D)).
                            ``(ii) Failure.--If any State fails to 
                        maintain a monthly average number of program-
                        eligible family units that maintain full 
                        engagement in work activation during a 
                        performance measurement period that fulfills 1 
                        or both of the relevant performance standards 
                        under subparagraphs (B) and (C) of paragraph 
                        (3) (subject to paragraph (3)(D))--
                                    ``(I) for a single, nonconsecutive 
                                performance measurement period, the 
                                Federal supplemental nutrition 
                                assistance program funding for the 
                                State shall be reduced by 20 percent of 
                                the normal funding allotment of the 
                                State for the penalty period that 
                                commences 12 months after the relevant 
                                performance measurement period;
                                    ``(II) for 2 consecutive 
                                performance measurement periods, the 
                                Federal supplemental nutrition 
                                assistance program funding for the 
                                State shall be reduced by 30 percent of 
                                the normal funding allotment of the 
                                State for the penalty period that 
                                commences 12 months after the relevant 
                                performance measurement period;
                                    ``(III) for 3 consecutive 
                                performance measurement periods, the 
                                Federal supplemental nutrition 
                                assistance program funding for the 
                                State shall be reduced by 40 percent of 
                                the normal funding allotment of the 
                                State for the penalty period that 
                                commences 12 months after the relevant 
                                performance measurement period;
                                    ``(IV) for 4 consecutive 
                                performance measurement periods, the 
                                Federal supplemental nutrition 
                                assistance program funding for the 
                                State shall be reduced by 50 percent of 
                                the normal funding allotment of the 
                                State for the penalty period that 
                                commences 12 months after the relevant 
                                performance measurement period;
                                    ``(V) for 5 consecutive performance 
                                measurement periods, the Federal 
                                supplemental nutrition assistance 
                                program funding for the State shall be 
                                reduced by 70 percent of the normal 
                                funding allotment of the State for the 
                                penalty period that commences 12 months 
                                after the relevant performance 
                                measurement period; or
                                    ``(VI) for 6 or more consecutive 
                                performance measurement periods, the 
                                Federal supplemental nutrition 
                                assistance program funding for the 
                                State shall be reduced by 100 percent 
                                of the normal funding allotment of the 
                                State for the penalty period that 
                                commences 12 months after the relevant 
                                performance measurement period.
                    ``(C) Restoration in funding resulting from 
                improved state performance.--
                            ``(i) In general.--Subject to clause (iii), 
                        if a State maintains a monthly average number 
                        of program-eligible family units that maintain 
                        full engagement in work activation that is 
                        sufficient to fulfill the relevant performance 
                        standards described in subparagraphs (B) and 
                        (C) of paragraph (3), subject to the limitation 
                        in paragraph (3)(D) for 1 nonconsecutive 
                        performance measurement period, the Federal 
                        supplemental nutrition assistance funding for 
                        the State for the next penalty period shall 
                        equal \1/2\ of the sum of--
                                    ``(I) the normal funding allotment 
                                of the State for the performance 
                                measurement period; and
                                    ``(II) the funding allotment of the 
                                State for the previous penalty period.
                            ``(ii) Subsequent periods.--Subject to 
                        clause (iii), if a State maintains a monthly 
                        average number of program-eligible family units 
                        who maintain full engagement in work activation 
                        that is sufficient to fulfill the relevant 
                        performance standards described in 
                        subparagraphs (B) and (C) of paragraph (3), 
                        subject to the limitation in paragraph (3)(D) 
                        for 2 consecutive performance measurement 
                        periods, the Federal supplemental nutrition 
                        assistance funding for the State shall equal 
                        100 percent of the normal funding allotment of 
                        the State for the next penalty period.
                            ``(iii) Limitation.--Notwithstanding 
                        clauses (i) and (ii), no State shall receive 
                        more than 100 percent of the normal funding 
                        allotment of the State due to the provisions of 
                        this paragraph.
            ``(6) Rewards to states for reducing government 
        dependence.--
                    ``(A) In general.--If, in any future year, a State 
                reduces the supplemental nutrition assistance caseload 
                of the State below the levels that existed in calendar 
                year 2006, the State shall receive a financial reward 
                for reducing dependence.
                    ``(B) Amount.--The reward shall equal \1/4\ of the 
                savings to the Federal Government for that year that 
                resulted from the caseload reduction.
                    ``(C) Use of reward.--A State may use reward 
                funding under this paragraph for any purpose chosen by 
                the State that--
                            ``(i) provides benefits or services to 
                        individuals with incomes below 200 percent of 
                        the Federal poverty level;
                            ``(ii) improves social outcomes in low-
                        income populations;
                            ``(iii) encourages healthy marriage; or
                            ``(iv) increases self-sufficiency and 
                        reduces dependence.
            ``(7) Authorization of funding.--
                    ``(A) In general.--There is authorized to be 
                appropriated to the Secretary to provide funds to State 
                governments for the purpose of carrying out work 
                activation programs in accordance with this section 
                $500,000,000 for fiscal year 2014 and each subsequent 
                fiscal year.
                    ``(B) Allocation among states.--The total amount 
                appropriated under subparagraph (A) for a fiscal year 
                shall be allocated among the States in accordance with 
                the proportion of each State's share of total funding 
                for the supplemental nutrition assistance program under 
                this Act in fiscal year 2007.
                    ``(C) Additional funding.--
                            ``(i) TANF funding.--
                                    ``(I) In general.--Notwithstanding 
                                any other provision of law, in fiscal 
                                year 2014 and each subsequent fiscal 
                                year, a State that receives 
                                supplemental nutrition assistance funds 
                                may spend, in that fiscal year to 
                                administer the work activation program 
                                of the State under this section, up 
                                to--
                                            ``(aa) 30 percent of the 
                                        Federal funds available to the 
                                        State through the program of 
                                        block grants to States for 
                                        temporary assistance for needy 
                                        families established under part 
                                        A of title IV of the Social 
                                        Security Act (42 U.S.C. 601 et 
                                        seq.) in that fiscal year; and
                                            ``(bb) 30 percent of funds 
                                        from State sources allocated to 
                                        the operation of the program 
                                        described in item (aa).
                                    ``(II) Effect.--Any State that uses 
                                State funds allocated to the program of 
                                block grants to States for temporary 
                                assistance for needy families 
                                established under part A of title IV of 
                                the Social Security Act (42 U.S.C. 601 
                                et seq.) to administer the work 
                                activation program under this section 
                                may count those funds for purposes of 
                                meeting the maintenance of effort 
                                requirement of the State under that 
                                program of block grants in that fiscal 
                                year.
                            ``(ii) Workforce investment act funding.--
                        Notwithstanding any other provision of law, in 
                        fiscal year 2014 and each subsequent fiscal 
                        year, a State that receives Federal funds under 
                        the Workforce Investment Act of 1998 (29 U.S.C. 
                        2801 et seq.) may spend up to 50 of those funds 
                        to administer the work activation program under 
                        this section.''.
    (j) Conforming Amendments.--
            (1) Section 5 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2014) is amended--
                    (A) in subsection (a), in the second sentence, by 
                striking ``, 6(d)(2),'';
                    (B) in subsection (d)(14), by striking ``section 
                6(d)(4)(I)'' and inserting ``section 29'';
                    (C) in subsection (e)(3)(B)(ii), by striking 
                ``subsection (d)(3)'' and inserting ``section 29''; and
                    (D) in the first sentence of subsection (g)(3), by 
                striking ``section 6(d)'' and inserting ``section 29''.
            (2) Section 7(i)(1) of the Food and Nutrition Act of 2008 
        (7 U.S.C. 2016(i)(1)) is amended by striking ``section 
        6(o)(2)'' and inserting ``section 6(o)''.
            (3) Section 11(e) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2020(e)) is amended--
                    (A) by striking paragraph (19); and
                    (B) by redesignating paragraphs (20) through (23) 
                as paragraphs (19) through (22), respectively.
            (4) Section 16 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2025) is amended--
                    (A) in subsection (b)(4), by striking ``section 
                6(d)'' and inserting ``section 29''; and
                    (B) by striking subsection (h).
            (5) Section 17 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2026) is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(B)(iv)(III)--
                                    (I) by striking item (bb); and
                                    (II) by redesignating items (cc) 
                                through (jj) as items (bb) through 
                                (ii), respectively;
                            (ii) in paragraph (2), by striking the 
                        second sentence; and
                            (iii) in paragraph (3)(B), in the first 
                        sentence, by striking ``section 6(d)'' and 
                        inserting ``section 29,''; and
                    (B) by striking subsection (g).
            (6) Section 20 of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2029) is amended--
                    (A) in subsection (b)--
                            (i) by striking paragraph (1); and
                            (ii) by redesignating paragraphs (2) 
                        through (6) as paragraphs (1) through (5), 
                        respectively;
                    (B) by striking subsection (f); and
                    (C) by redesignating subsection (g) as subsection 
                (f).
            (7) Section 22(b) of the Food and Nutrition Act of 2008 (7 
        U.S.C. 2031(b)) is amended by striking paragraph (4).
            (8) Section 26(f)(3)(E) of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2036(f)(3)(E)) is amended by striking ``(22), 
        and (23)'' and inserting ``(21), and (22)''.
            (9) Section 501(b)(2)(E) of the Workforce Investment Act of 
        1998 (20 U.S.C. 9271(b)(2)(E)) is amended by striking ``section 
        6(d)'' and all that follows through the end and inserting 
        ``section 29 of the Food and Nutrition Act of 2008.''.
            (10) Section 112(b)(8)(A)(iii) of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2822(b)(8)(A)(iii)) is amended by 
        striking ``section 6(d)(4)'' and all that follows through ``(7 
        U.S.C. 2015(d)(4))'' and inserting ``section 29 of the Food and 
        Nutrition Act of 2008''.
            (11) Section 121(b)(2)(B)(ii) of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2841(b)(2)(B)(ii)) is amended by 
        striking ``section 6(d)(4)'' and all that follows through the 
        end and inserting ``section 29 of the Food and Nutrition Act of 
        2008;''.

SEC. 102. TERMINATION OF BENEFIT INCREASE.

    Section 101(a)(2) of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 120; 124 Stat. 
2394; 124 Stat. 3265) is amended by striking paragraph (2) and 
inserting the following:
            ``(2) Termination.--The authority provided by this 
        subsection shall terminate on the date of enactment of the 
        Welfare Reform and Upward Mobility Act.''.

  TITLE II--REPORTING OF MEANS-TESTED WELFARE SPENDING IN PRESIDENT'S 
                           BUDGET SUBMISSION

SEC. 201. ADDITIONAL INFORMATION IN PRESIDENT'S BUDGET SUBMISSION.

    Section 1105(a) of title 31, United States Code, is amended--
            (1) by redesignating the second paragraph designated as 
        paragraph (37), relating to outdated or duplicative plans and 
        reports, as added by section 11 of the GPRA Modernization Act 
        of 2010 (Public Law 111-352; 124 Stat. 3881), as paragraph 
        (39); and
            (2) by adding at the end the following:
            ``(40) the total level of means-tested welfare spending (as 
        defined in section 3 of the Congressional Budget Act of 1974 (2 
        U.S.C. 622)) by the Federal Government and the total level of 
        means-tested welfare spending by all State and local 
        governments and the Federal Government for the most recent 
        fiscal year for which such data is available and estimated 
        levels for the fiscal year during which the budget submission 
        of the President is made, for the fiscal year beginning on 
        October 1 of the calendar year during which the budget 
        submission is made, and for each of the 9 ensuing fiscal 
        years.''.

       TITLE III--AGGREGATE CAP FOR MEANS-TESTED WELFARE SPENDING

SEC. 301. DEFINITION OF MEANS-TESTED WELFARE SPENDING.

    Section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622) is 
amended by adding at the end the following new paragraph:
            ``(12)(A) The term `means-tested welfare spending'--
                    ``(i) means spending for any Federal program that 
                is designed to specifically provide assistance or 
                benefits exclusively to low-income Americans;
                    ``(ii) does not include such a program if the 
                program--
                            ``(I) is based on earned eligibility;
                            ``(II) is not need-based;
                            ``(III) is a program designed exclusively 
                        or primarily for veterans of military service; 
                        or
                            ``(IV) offers universal or near universal 
                        eligibility to the working population and their 
                        dependents; and
                    ``(iii) includes community and economic development 
                programs targeted to low-income communities or 
                populations.
            ``(B) For purposes of subparagraph (A), the spending on 
        following Federal programs shall be means-tested welfare 
        spending:
                    ``(i) Cash and general programs.--
                            ``(I) Supplemental Security Income.
                            ``(II) Earned Income Tax Credit (Refundable 
                        Portion).
                            ``(III) Refundable Child Credit.
                            ``(IV) Temporary Assistance to Needy 
                        Families.
                            ``(V) Title IV-E Foster Care.
                            ``(VI) Title IV-E Adoption Assistance.
                            ``(VII) General Assistance to Indians.
                            ``(VIII) Assets for Independence.
                    ``(ii) Medical.--
                            ``(I) Medicaid.
                            ``(II) State Children's Health Insurance 
                        Program.
                            ``(III) Indian Health Services.
                            ``(IV) Consolidated Health Centers/
                        Community Health Centers.
                            ``(V) Maternal and Child Health.
                            ``(VI) Healthy Start.
                            ``(VII) Refundable Premiums and Out of 
                        Pocket Subsidies under the Patient Protection 
                        and Affordable Health Care Act (PPACA).
                    ``(iii) Food.--
                            ``(I) Food Stamps Program.
                            ``(II) School Lunch Program.
                            ``(III) Women, Infant and Children (WIC) 
                        Food Program.
                            ``(IV) School Breakfast.
                            ``(V) Child Care Food Program.
                            ``(VI) Nutrition Program for the Elderly, 
                        Nutrition Service Incentives.
                            ``(VII) Summer Food Service Program.
                            ``(VIII) Commodity Supplemental Food 
                        Program.
                            ``(IX) Temporary Emergency Food Program.
                            ``(X) Needy Families.
                            ``(XI) Farmer's Market Nutrition Program.
                            ``(XII) Special Milk Program.
                    ``(iv) Housing.--
                            ``(I) Section 8 Housing (HUD).
                            ``(II) Public Housing (HUD).
                            ``(III) State Housing Expenditures.
                            ``(IV) Home Investment Partnership Program 
                        (HUD).
                            ``(V) Homeless Assistance Grants (HUD).
                            ``(VI) Rural Housing Insurance Fund 
                        (Agriculture).
                            ``(VII) Rural Housing Service 
                        (Agriculture).
                            ``(VIII) Housing for the Elderly (HUD).
                            ``(IX) Native American Housing Block Grants 
                        (HUD).
                            ``(X) Other Assisted Housing Programs 
                        (HUD).
                            ``(XI) Housing for Persons with 
                        Disabilities (HUD).
                    ``(v) Energy and utilities.--
                            ``(I) Low-Income Home Energy Assistance.
                            ``(II) Universal Service Fund--Subsidized 
                        Phone Service for Low-Income Persons.
                            ``(III) Weatherization.
                    ``(vi) Education.--
                            ``(I) Pell Grants.
                            ``(II) Title I Grants to Local Education 
                        Authorities.
                            ``(III) Special Programs for Disadvantaged 
                        (TRIO).
                            ``(IV) Supplemental Education Opportunity 
                        Grants.
                            ``(V) Migrant Education.
                            ``(VI) Gear-Up.
                            ``(VII) Education for Homeless Children and 
                        Youth.
                            ``(VIII) Leveraging Educational Assistance 
                        Partnership (LEAP) Program.
                            ``(IX) Even Start.
                    ``(vii) Training.--
                            ``(I) Job Corps.
                            ``(II) Youth Opportunity Grants (under the 
                        Workforce Investment Act).
                            ``(III) Adult Employment and Training 
                        (under the Workforce Investment Act).
                            ``(IV) Senior Community Service Employment.
                            ``(V) Food Stamp Employment and Training 
                        Program.
                            ``(VI) Migrant Training.
                            ``(VII) YouthBuild.
                            ``(VIII) Native American Training.
                    ``(viii) Services.--
                            ``(I) Title XX Social Services Block Grant.
                            ``(II) Community Service Block Grant.
                            ``(III) Social Services for Refugees, 
                        Asylees, and Humanitarian Cases.
                            ``(IV) Title III Aging Americans Act.
                            ``(V) Legal Services Block Grant.
                            ``(VI) Family Planning.
                            ``(VII) Emergency Food and Shelter.
                            ``(VIII) Healthy Marriage and Responsible 
                        Fatherhood Grants.
                            ``(IX) Americorps VISTA.
                    ``(ix) Child care and child development.--
                            ``(I) Headstart.
                            ``(II) Childcare and Child Development 
                        Block Grant.
                            ``(III) Child Care Block Grant (under 
                        Temporary Assistance to Needy Families 
                        Program).
                    ``(x) Community development.--
                            ``(I) Community Development Block Grant.
                            ``(II) Economic Development Administration.
                            ``(III) Appalachian Regional Development.
                            ``(IV) Empowerment Zones, Enterprise 
                        Communities, Renewal Communities.
                            ``(V) Urban Development Block Grant.
            ``(C) For purposes of subparagraph (A), spending on 
        following Federal programs shall not be means-tested welfare 
        spending:
                    ``(i) The Social Security Disability Insurance 
                program.
                    ``(ii) Medicare.
                    ``(iii) Retirement insurance benefits and survivor 
                benefits under the Social Security program.
                    ``(iv) Any program designed exclusively or 
                primarily for veterans of military service.
                    ``(v) Unemployment insurance benefits.
                    ``(vi) Programs designed specifically to provide 
                benefits to workers to compensate for job-related 
                injuries or illnesses.
            ``(D) The term `means-tested welfare spending' includes the 
        full cost of benefits and services provided under a program and 
        the administrative costs for operating the program, subject to 
        the limitations under subparagraph (E).
            ``(E)(i)(I) For purposes of this paragraph, only the 
        refundable portion of the following tax credits shall be means-
        tested welfare spending:
                    ``(aa) The earned income tax credit.
                    ``(bb) The child tax credit.
                    ``(cc) The making work pay tax credit.
            ``(II) For purposes of this paragraph, only the refundable 
        portion of the premium and out of pocket health care subsidies 
        to be paid under the Patient Protection and Affordable Health 
        Care Act shall be means-tested welfare spending.
            ``(III) For purposes of this clause, the term `refundable 
        portion' means the portion of the credit which is paid to an 
        individual in excess of the amount of Federal income tax owed 
        by the individual.
            ``(ii) For purposes of this paragraph, only the costs of 
        the free and reduced price segments of the school lunch and 
        school breakfast programs shall be means-tested welfare 
        spending.
            ``(F) For purposes of this paragraph expenditures by State 
        and local governments of funds that are--
                    ``(i) obtained by the State and local government 
                from taxes, fees, or other sources of revenue 
                established by the State or local government; and
                    ``(ii) are not received as any form of grant from 
                the Federal Government,
        shall not be Federal means-tested welfare spending, without 
        regard to whether such State and local expenditures take the 
        form of contributions to a Federal program described in 
        subparagraph (A) or listed in subparagraph (B).''.

SEC. 302. REPORTS TO BUDGET COMMITTEES.

    Section 202(e)(1) of the Congressional Budget Act of 1974 (2 U.S.C. 
602(e)(1)) is amended--
            (1) by inserting ``(A)'' after ``(1)''; and
            (2) by adding at the end the following:
            ``(B)(i) The Director shall include in each report 
        submitted to the Committees on the Budget of the House of 
        Representatives and the Senate under subparagraph (A) the 
        information described in clause (ii) beginning on the earlier 
        of--
                    ``(I) the first fiscal year that begins after the 
                date of enactment of this subparagraph and after any 
                monthly rate of unemployment during the immediately 
                preceding fiscal year is below 6 percent; or
                    ``(II) fiscal year 2016.
            ``(ii) The Director shall include the following information 
        for the fiscal year commencing on October 1 of the year in 
        which the report is submitted and for each of the ensuing 4 
        fiscal years:
                    ``(I) The Congressional Budget Office baseline 
                level of means-tested welfare spending.
                    ``(II) The aggregate level of means-tested welfare 
                spending computed by taking the aggregate level of 
                means-tested welfare spending for fiscal year 2007 and 
                adjusting that for inflation according to the 
                procedures specified in clause (iii).
            ``(iii) In preparing the information required to be 
        included under this subparagraph--
                    ``(I) means-tested welfare spending relating to 
                medical assistance programs shall be adjusted for 
                inflation according to the price index for personal 
                consumption expenditures for health products and 
                services as calculated by the Bureau of Economic 
                Analysis; and
                    ``(II) all other means-tested welfare spending 
                shall be adjusted for inflation according to the 
                weighted price index for personal consumption 
                expenditures excluding health products and services as 
                calculated by the Bureau of Economic Analysis.''.

SEC. 303. CONTENT OF CONCURRENT RESOLUTIONS ON THE BUDGET.

    Section 301 of the Congressional Budget Act of 1974 (2 U.S.C. 632) 
is amended by adding at the end the following:
    ``(j) Means-Tested Welfare Spending.--
            ``(1) In general.--The concurrent resolution on the budget 
        for a fiscal year shall set forth the appropriate level for 
        aggregate means-tested welfare spending for the first fiscal 
        year of that concurrent resolution and for at least each of the 
        4 ensuing fiscal years beginning on the earlier of--
                    ``(A) the first fiscal year that begins after the 
                date of enactment of this subsection and after any 
                monthly rate of unemployment during the immediately 
                preceding fiscal year is below 6 percent; or
                    ``(B) fiscal year 2016.
            ``(2) Setting level.--The level described in paragraph (1) 
        shall not exceed--
                    ``(A) in fiscal year 2016, $825,000,000,000;
                    ``(B) in fiscal year 2017, $750,000,000,000; and
                    ``(C) in fiscal year 2018 and subsequent fiscal 
                years, the aggregate level of Federal means-tested 
                welfare spending for fiscal year 2007, adjusted for 
                inflation as follows:
                            ``(i) Means-tested welfare spending 
                        relating to medical assistance programs shall 
                        be adjusted for inflation according to the 
                        price index for personal consumption 
                        expenditures for health products and services 
                        as calculated by the Bureau of Economic 
                        Analysis.
                            ``(ii) All other means-tested welfare 
                        spending shall be adjusted for inflation 
                        according to the weighted price index for 
                        personal consumption expenditures excluding 
                        health products and services as calculated by 
                        the Bureau of Economic Analysis.''.

SEC. 304. ALLOCATIONS OF MEANS-TESTED WELFARE SPENDING.

    (a) In General.--Section 302 of the Congressional Budget Act of 
1974 (2 U.S.C. 633) is amended by adding at the end the following:
    ``(h) Means-Tested Welfare Spending Limit.--
            ``(1) Further division of amounts.--For any concurrent 
        resolution on the budget in which levels for aggregate means-
        tested welfare spending are set forth under section 301(j), in 
        the House of Representatives and the Senate, the amounts 
        allocated under subsection (a) shall be further divided to 
        establish an allocation of--
                    ``(A) total new budget authority and total outlays 
                for discretionary means-tested welfare spending in 
                appropriation measures for the first fiscal year of 
                that concurrent resolution; and
                    ``(B) total new budget authority and total outlays 
                for mandatory means-tested welfare spending for the 
                first fiscal year of that concurrent resolution and at 
                least each of the ensuing 4 fiscal years to all other 
                committees of the House of Representatives and the 
                Senate that have jurisdiction over legislation 
                providing mandatory means-tested welfare spending.
            ``(2) Point of order.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), it shall not be in order in the House 
                of Representatives or the Senate to consider any bill, 
                joint resolution, amendment, or amendment between the 
                Houses if--
                            ``(i) the enactment of such bill or 
                        resolution as reported;
                            ``(ii) the adoption and enactment of such 
                        amendment;
                            ``(iii) the enactment of such bill or 
                        resolution in the form recommended in such 
                        conference report; or
                            ``(iv) the enactment of such amendment 
                        between the Houses,
                would cause the applicable allocation of new budget 
                authority or outlays made under subparagraph (A) or (B) 
                of paragraph (1) for a fiscal year to be exceeded.
                    ``(B) Exception.--The limits on the allocation of 
                new budget authority or outlays made under subparagraph 
                (A) or (B) of paragraph (1) shall not be in effect for 
                a fiscal year if the average monthly unemployment rate 
                in the preceding fiscal year exceeded 7.5 percent.''.
    (b) Conforming Amendment.--Section 302(b) of the Congressional 
Budget Act of 1974 is amended by striking ``under subsection (a)'' and 
inserting ``under subsections (a) and (h)''.

SEC. 305. RECONCILIATION.

    Section 310(a) of the Congressional Budget Act of 1974 (2 U.S.C. 
641(a)) is amended--
            (1) in paragraph (3), by striking ``or'' at the end;
            (2) by redesignating paragraph (4) as paragraph (5);
            (3) by inserting after paragraph (3) the following:
            ``(4) specify the total amount by which new budget 
        authority for such fiscal year for mandatory means-tested 
        welfare spending contained in laws, bills, and resolutions 
        within the jurisdiction of a committee is to be changed and 
        direct that committee to determine and recommend changes to 
        accomplish a change of such total amount, which amount shall be 
        the amount by which the Congressional Budget Office baseline 
        level of spending for aggregate mandatory means-tested welfare 
        programs exceeds the allocation made pursuant to section 
        302(h)(1)(B) for such fiscal year; and''; and
            (4) in paragraph (5), as so redesignated, by striking ``and 
        (3)'' and inserting ``(3), and (4)''.

              TITLE IV--GRANTS TO PROMOTE SELF-SUFFICIENCY

SEC. 401. GRANTS TO STATES.

    (a) Purpose.--The purpose of this title is to encourage States to 
develop policies to promote self-sufficiency and prosperity and to 
reduce poverty and Government dependence.
    (b) Grants.--The Social Security Act is amended by adding at the 
end the following:

    ``TITLE XXII--GRANTS TO STATES TO PROMOTE SELF-SUFFICIENCY AND 
                  PROSPERITY AND TO REDUCE DEPENDENCE

``SEC. 2201. GRANTS TO STATES.

    ``(a) In General.--The Secretary may provide grants to States to 
reward reductions in poverty and Government dependence and increases in 
self-sufficiency.
    ``(b) Allocation of Grants to States.--For each fiscal year for 
which funds are made available under subsection (e), the Secretary 
shall make a grant in an amount equal to $100,000,000 to each of the 3 
States with the greatest percentage increases in the self-sufficiency 
ratio of the State for the preceding fiscal year over the self-
sufficiency ratio of the State for fiscal year 2007, as compared with 
the changes in that ratio for each other State, subject to subsection 
(c).
    ``(c) Limitation on Eligibility for Grants.--A State shall not be 
eligible for a grant under this title for a fiscal year unless the 
self-sufficiency ratio of the State for the fiscal year is greater than 
the self-sufficiency ratio of the State for fiscal year 2007.
    ``(d) Definitions.--In this title:
            ``(1) The term `self-sufficient family' means a family 
        (including a 1-person family) whose combined income, excluding 
        receipt of means-tested welfare spending (as defined in section 
        3(11)(A) of the Congressional Budget and Impoundment Control 
        Act of 1974), exceeds the poverty line (within the meaning of 
        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).
            ``(2) The term `self-sufficiency ratio' means, with respect 
        to a State and a fiscal year--
                    ``(A) the number of self-sufficient families 
                residing in the State during the fiscal year that are 
                headed by able-bodied individuals who have not attained 
                63 years of age; divided by
                    ``(B) the total number of families residing in the 
                State during the fiscal year that are headed by able-
                bodied individuals who have not attained 63 years of 
                age.
            ``(3) The term `State' means the 50 States and the District 
        of Columbia.
    ``(e) Limitations on Authorization of Appropriations.--For grants 
under this title, there are authorized to be appropriated to the 
Secretary $300,000,000 for fiscal year 2016 and each succeeding fiscal 
year.''.

              TITLE V--PROHIBITION ON FUNDING OF ABORTION

SEC. 501. PROHIBITION ON FUNDING FOR ABORTIONS.

    No funds authorized or appropriated by Federal law, and none of the 
funds in any trust fund to which funds are authorized or appropriated 
by Federal law, shall be expended for any abortion.

SEC. 502. PROHIBITION ON FUNDING FOR HEALTH BENEFITS PLANS THAT COVER 
              ABORTION.

    None of the funds authorized or appropriated by Federal law, and 
none of the funds in any trust fund to which funds are authorized or 
appropriated by Federal law, shall be expended for health benefits 
coverage that includes coverage of abortion.

SEC. 503. PROHIBITION ON TAX BENEFITS RELATING TO ABORTION.

    For taxable years beginning after the date of the enactment of this 
section, no credit shall be allowed under the internal revenue laws 
with respect to amounts paid or incurred for an abortion or with 
respect to amounts paid or incurred for a health benefits plan 
(including premium assistance) that includes coverage of abortion.

SEC. 504. CONSTRUCTION RELATING TO SEPARATE COVERAGE.

    Nothing in this title shall be construed as prohibiting any 
individual, entity, or State or locality from purchasing separate 
abortion coverage or health benefits coverage that includes abortion so 
long as such coverage is paid for entirely using only funds not 
authorized or appropriated by Federal law and such coverage shall not 
be purchased using matching funds required for a federally subsidized 
program, including a State's or locality's contribution of Medicaid 
matching funds.

SEC. 505. CONSTRUCTION RELATING TO THE USE OF NON-FEDERAL FUNDS FOR 
              HEALTH COVERAGE.

    Nothing in this title shall be construed as restricting the ability 
of any non-Federal health benefits coverage provider from offering 
abortion coverage, or the ability of a State or locality to contract 
separately with such a provider for such coverage, so long as only 
funds not authorized or appropriated by Federal law are used and such 
coverage shall not be purchased using matching funds required for a 
federally subsidized program, including a State's or locality's 
contribution of Medicaid matching funds.

SEC. 506. TREATMENT OF ABORTIONS RELATED TO RAPE, INCEST, OR PRESERVING 
              THE LIFE OF THE MOTHER.

    The limitations established in this title shall not apply to an 
abortion--
            (1) if the pregnancy is the result of an act of rape or 
        incest; or
            (2) in the case where a woman suffers from a physical 
        disorder, physical injury, or physical illness that would, as 
        certified by a physician, place the woman in danger of death 
        unless an abortion is performed, including a life-endangering 
        physical condition caused by or arising from the pregnancy 
        itself.
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