II 

117TH CONGRESS 

1ST SESSION S. 2381 

To amend part A of title IV of the Social Security Act, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 19, 2021 

Mr. DAINES introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend part A of title IV of the Social Security Act, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Jobs and Opportunity 

5 with Benefits and Services for Success Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents of this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

Sec. 4. Re-naming of program. 

Sec. 5. Helping more Americans enter and remain in the workforce. 

Sec. 6. Expecting universal engagement and case management. 

Sec. 7. Promoting accountability by measuring work outcomes. 


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Sec. 8. Targeting funds to truly needy families. 

Sec. 9. Targeting funds to core purposes. 

Sec. 10. Strengthening program integrity by measuring improper payments. 

Sec. 11. Prohibition on State diversion of Federal funds to replace State spending. 

Sec. 12. Inclusion of poverty reduction as a program purpose. 

Sec. 13. Welfare for needs not weed. 

Sec. 14. Strengthening accountability through HHS approval of State plans. 

Sec. 15. Aligning and improving data reporting. 

Sec. 16. Technical corrections to data exchange standards to improve program 

coordination. 

Sec. 17. Set-aside for economic downturns. 

Sec. 18. Definitions related to use of funds. 

Sec. 19. Elimination of obsolete provisions. 

Sec. 20. Effective date. 

1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, wherever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 

6 section or other provision of the Social Security Act. 

7 SEC. 4. RE-NAMING OF PROGRAM. 

8 (a) IN GENERAL.—The heading for part A of title 

9 IV is amended to read as follows: 

10 ‘‘PART A—JOBS AND OPPORTUNITY WITH 

11 BENEFITS AND SERVICES PROGRAM’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) The heading for section 403(a)(2)(B) (42 

14 U.S.C. 603(a)(2)(B)) is amended by striking 

15 ‘‘TANF’’ and inserting ‘‘JOBS’’. 

16 (2) The heading for section 413 (42 U.S.C. 

17 613) is amended by striking ‘‘TEMPORARY AS18 SISTANCE FOR NEEDY FAMILIES’’ and inserting 


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1 ‘‘JOBS AND OPPORTUNITY WITH BENEFITS AND

2 SERVICES’’. 

3 (3) The heading for section 413(a) (42 U.S.C. 

4 613(a)) is amended by striking ‘‘TANF’’ and insert5 ing ‘‘JOBS’’. 

6 (4) The heading for section 471(e)(7)(B)(i) (42 

7 U.S.C. 671(e)(7)(B)(i)) is amended by striking 

8 ‘‘TANF’’ and inserting ‘‘JOBS’’. 

9 SEC. 5. HELPING MORE AMERICANS ENTER AND REMAIN IN 

10 THE WORKFORCE. 

11 (a) FAMILY ASSISTANCE GRANTS.—Section 

12 403(a)(1) (42 U.S.C. 603(a)(1)) is amended in each of 

13 subparagraphs (A) and (C) by striking ‘‘2017 and 2018’’ 

14 and inserting ‘‘2022 through 2027’’. 

15 (b) HEALTHY MARRIAGE PROMOTION AND RESPON16 SIBLE FATHERHOOD GRANTS.—Section 403(a)(2)(D) (42 

17 U.S.C. 603(a)(2)(D)) is amended— 

18 (1) by striking ‘‘2017 and 2018’’ and inserting 

19 ‘‘2022 through 2027’’; and 

20 (2) by striking ‘‘for fiscal year 2017 or 2018’’. 

21 (c) TRIBAL GRANTS.—Section 412(a) (42 U.S.C. 

22 612(a)) is amended in each of paragraphs (1)(A) and 

23 (2)(A) by striking ‘‘2017 and 2018’’ and inserting ‘‘2022 

24 through 2027’’. 


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1 (d) IMPROVING ACCESS TO CHILD CARE TO SUP2 PORT WORK.—Section 418(a)(3) (42 U.S.C. 618(a)(3)) is 

3 amended— 

4 (1) by striking ‘‘$3,550,000,000 for each fiscal 

5 year’’ and inserting ‘‘$4,158,000,000 for each of fis6 cal years 2022 through 2027’’; and 

7 (2) in subparagraph (A), by striking 

8 ‘‘$3,375,000,000’’ and inserting ‘‘$3,983,000,000’’. 

9 (e) GRANTS TO THE TERRITORIES.—Section 

10 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by striking 

11 ‘‘2017 and 2018’’ and inserting ‘‘2022 through 2027’’. 

12 SEC. 6. EXPECTING UNIVERSAL ENGAGEMENT AND CASE 

13 MANAGEMENT. 

14 Section 408(b) (42 U.S.C. 608(b)) is amended to 

15 read as follows: 

16 ‘‘(b) INDIVIDUAL OPPORTUNITY PLANS.— 

17 ‘‘(1) ASSESSMENT.—The State agency respon18 sible for administering the State program funded 

19 under this part shall make an initial assessment of 

20 the following for each work-eligible individual (as de21 fined in the regulations promulgated pursuant to 

22 section 407(i)(1)(A)(i)): 

23 ‘‘(A) The education obtained, skills, prior 

24 work experience, work readiness, and barriers 

25 to work of the individual. 


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1 ‘‘(B) The well-being of the children in the 

2 family of the individual and, where appropriate, 

3 activities or services (such as services offered by 

4 a program funded under section 511) to im5 prove the well-being of the children. 

6 ‘‘(2) CONTENTS OF PLANS.—On the basis of 

7 the assessment required by paragraph (1) of this 

8 subsection, the State agency, in consultation with 

9 the individual, shall develop an individual oppor10 tunity plan that— 

11 ‘‘(A) includes a personal responsibility 

12 agreement in which the individual acknowledges 

13 receipt of publicly funded benefits and responsi14 bility to comply with program requirements in 

15 order to receive the benefits; 

16 ‘‘(B) sets forth the obligations of the indi17 vidual to participate in work activities (as de18 fined in section 407(d)), and the number of 

19 hours per month for which the individual will so 

20 participate pursuant to section 407; 

21 ‘‘(C) sets forth an employment goal and 

22 planned short-, intermediate-, and long-term ac23 tions to achieve the goal, and, in the case of an 

24 individual who has not attained 24 years of age 

25 and is in secondary school or the equivalent, the 


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1 intermediate action may be completion of sec2 ondary school or the equivalent; 

3 ‘‘(D) describes the job counseling and 

4 other services the State will provide to the indi5 vidual to enable the individual to obtain and 

6 keep unsubsidized employment; 

7 ‘‘(E) may include referral to appropriate 

8 substance abuse or mental health treatment; 

9 and 

10 ‘‘(F) is signed by the individual. 

11 ‘‘(3) TIMING.—The State agency shall comply 

12 with paragraphs (1) and (2) with respect to a work13 eligible individual— 

14 ‘‘(A) within 1 year after the effective date 

15 of this subsection, in the case of an individual 

16 who, as of such effective date, is a recipient of 

17 assistance under the State program funded 

18 under this part (as in effect immediately before 

19 such effective date); or 

20 ‘‘(B) within 60 days after the individual is 

21 determined to be eligible for the assistance, in 

22 the case of any other individual. 

23 ‘‘(4) UNIVERSAL ENGAGEMENT.—Subject to the 

24 exceptions in paragraph (3), each State shall require 

25 all work-eligible recipients receiving funds under the 


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1 State program funded under this part to engage in 

2 work in accordance with the provisions of sections 

3 407(c), 407(d), and 407(e).’’ 

4 ‘‘(5) PENALTY FOR NONCOMPLIANCE BY INDI5 VIDUAL.—In addition to any other penalties required 

6 under the State program funded under this part, the 

7 State shall reduce, by such amount as the State con8 siders appropriate, the amount of assistance other9 wise payable under the State program to a family 

10 that includes an individual who fails without good 

11 cause to comply with an individual opportunity plan 

12 developed pursuant to this subsection, that is signed 

13 by the individual. 

14 ‘‘(6) PERIODIC REVIEW.—The State shall meet 

15 with each work-eligible individual assessed by the 

16 State under paragraph (1), not less frequently than 

17 every 90 days, to— 

18 ‘‘(A) review the individual opportunity plan 

19 developed for the individual, including the eligi20 bility of the individual for benefits; 

21 ‘‘(B) discuss with the individual the 

22 progress made by the individual in achieving 

23 the goals specified in the plan; and 


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1 ‘‘(C) update the plan, as necessary, to re2 flect any changes in the circumstances of the 

3 individual since the plan was last reviewed.’’. 

4 SEC. 7. PROMOTING ACCOUNTABILITY BY MEASURING 

5 WORK OUTCOMES. 

6 (a) IN GENERAL.—Section 407(a) (42 U.S.C. 

7 607(a)) is amended to read as follows: 

8 ‘‘(a) PERFORMANCE ACCOUNTABILITY AND WORK

9 OUTCOMES.— 

10 ‘‘(1) WORK OUTCOMES.— 

11 ‘‘(A) IN GENERAL.—A State to which a 

12 grant is made under section 403 shall achieve 

13 the requisite minimum level of performance for 

14 a fiscal year described in this paragraph with 

15 respect to the percentage of employment exits 

16 for families receiving assistance under the State 

17 program funded under this part, or be subject 

18 to penalty as described in section 409(a)(3). 

19 ‘‘(B) CALCULATION OF PERCENTAGE OF

20 EMPLOYMENT EXITS.—For purposes of this 

21 paragraph, the percentage of employment exits 

22 with respect to a State equals the ratio of the 

23 number of work-eligible individuals who are in 

24 unsubsidized employment 6 months after their 

25 exit to the average monthly number of families 


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1 receiving assistance under the State program 

2 funded under this part. 

3 ‘‘(C) AGREEMENT ON REQUISITE LEVEL

4 OF PERFORMANCE.—The Secretary and the 

5 State shall negotiate the requisite level of per6 formance for the State with respect to employ7 ment exits for each fiscal year beginning with 

8 fiscal year 2024. 

9 ‘‘(2) PERFORMANCE ACCOUNTABILITY.— 

10 ‘‘(A) PURPOSE.—The purpose of this para11 graph is to provide for the establishment of per12 formance accountability measures to assess the 

13 effectiveness of States in increasing employ14 ment, retention, and advancement among fami15 lies receiving assistance under the State pro16 gram funded under this part. 

17 ‘‘(B) IN GENERAL.—A State to which a 

18 grant is made under section 403 for a fiscal 

19 year shall achieve the requisite level of perform20 ance on an indicator described in subparagraph 

21 (D) of this paragraph for the fiscal year. 

22 ‘‘(C) MEASURING STATE PERFORMANCE.— 

23 Each State, in consultation with the Secretary, 

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1 formance of the State for each indicator de2 scribed in subparagraph (D), for fiscal year 

3 2023 and each fiscal year thereafter, and the 

4 Secretary shall use the information collected for 

5 fiscal year 2023 to establish the baseline level 

6 of performance for each State for each such in7 dicator. 

8 ‘‘(D) INDICATORS OF PERFORMANCE.— 

9 The indicators described in this subparagraph, 

10 for a fiscal year, are the following: 

11 ‘‘(i) The percentage of individuals who 

12 were work-eligible individuals as of the 

13 time of exit from the program, who are in 

14 unsubsidized employment during the 2nd 

15 quarter after the exit. 

16 ‘‘(ii) The percentage of individuals 

17 who were work-eligible individuals who 

18 were in unsubsidized employment in the 

19 2nd quarter after the exit, who are also in 

20 unsubsidized employment during the 4th 

21 quarter after the exit. 

22 ‘‘(iii) The median earnings of individ23 uals who were work-eligible individuals as 

24 of the time of exit from the program, who 


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1 are in unsubsidized employment during the 

2 2nd quarter after the exit. 

3 ‘‘(iv) The percentage of individuals 

4 who have not attained 24 years of age, are 

5 attending high school or enrolled in an 

6 equivalency program, and are work-eligible 

7 individuals or were work-eligible individ8 uals as of the time of exit from the pro9 gram, who obtain a high school degree or 

10 its recognized equivalent while receiving as11 sistance under the State program funded 

12 under this part or within 1 year after the 

13 exit. 

14 ‘‘(E) LEVELS OF PERFORMANCE.— 

15 ‘‘(i) IN GENERAL.—For each State 

16 submitting a State plan pursuant to sec17 tion 402(a), there shall be established, in 

18 accordance with this subparagraph, levels 

19 of performance for each of the indicators 

20 described in subparagraph (D). 

21 ‘‘(ii) WEIGHT.—The weight assigned 

22 to such an indicator shall be the following: 

23 ‘‘(I) 40 percent, in the case of 

24 the indicator described in subpara25 graph (D)(i). 


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1 ‘‘(II) 25 percent, in the case of 

2 the indicator described in subpara3 graph (D)(ii). 

4 ‘‘(III) 25 percent, in the case of 

5 the indicator described in subpara6 graph (D)(iii). 

7 ‘‘(IV) 10 percent, in the case of 

8 the indicator described in subpara9 graph (D)(iv). 

10 ‘‘(iii) AGREEMENT ON REQUISITE

11 PERFORMANCE LEVEL FOR EACH INDI12 CATOR.— 

13 ‘‘(I) IN GENERAL.—The Sec14 retary and the State shall negotiate 

15 the requisite level of performance for 

16 the State with respect to each indi17 cator described in clause (ii), for each 

18 fiscal year beginning with fiscal year 

19 2024, and shall do so before the be20 ginning of the fiscal year involved. 

21 ‘‘(II) REQUIREMENTS IN ESTAB22 LISHING PERFORMANCE LEVELS.—In 

23 establishing the requisite levels of per24 formance, the State and the Secretary 

25 shall— 


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1 ‘‘(aa) take into account how 

2 the levels involved compare with 

3 the levels established for other 

4 States; and 

5 ‘‘(bb) ensure the levels in6 volved are adjusted, using the ob7 jective statistical model referred 

8 to in clause (v), based on— 

9 ‘‘(AA) the differences 

10 among States in economic 

11 conditions, including dif12 ferences in unemployment 

13 rates or employment losses 

14 or gains in particular indus15 tries; 

16 ‘‘(BB) the characteris17 tics of participants on entry 

18 into the program, including 

19 indicators of prior work his20 tory, lack of educational or 

21 occupational skills attain22 ment, or other factors that 

23 may affect employment and 

24 earnings; and 


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1 ‘‘(CC) take into account 

2 the extent to which the lev3 els involved promote contin4 uous improvement in per5 formance by each State. 

6 ‘‘(iv) REVISIONS BASED ON ECONOMIC

7 CONDITIONS AND INDIVIDUALS RECEIVING

8 ASSISTANCE DURING THE FISCAL YEAR.— 

9 The Secretary shall, in accordance with the 

10 objective statistical model referred to in 

11 clause (v), revise the requisite levels of per12 formance for a State and a fiscal year to 

13 reflect the economic conditions and charac14 teristics of the relevant individuals in the 

15 State during the fiscal year. 

16 ‘‘(v) STATISTICAL ADJUSTMENT

17 MODEL.—The Secretary shall use an objec18 tive statistical model to make adjustments 

19 to the requisite levels of performance for 

20 the economic conditions and characteristics 

21 of the relevant individuals, and shall con22 sult with the Secretary of Labor to develop 

23 a model that is the same as or similar to 

24 the model described in section 

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1 vation and Opportunity Act (29 U.S.C. 

2 3141(b)(3)(A)(viii)). 

3 ‘‘(vi) DEFINITION OF EXIT.—In this 

4 paragraph, the term ‘exit’ means, with re5 spect to a State program funded under 

6 this part, ceases to a receive a JOBS ben7 efit under the program. 

8 ‘‘(F) STATE OPTION TO ESTABLISH COM9 MON EXIT MEASURES.—Notwithstanding sub10 paragraph (E)(vi) of this paragraph, a State 

11 that has not provided the notification under 

12 section 121(b)(1)(C)(ii) of the Workforce Inno13 vation and Opportunity Act to exclude the State 

14 program funded under this part as a mandatory 

15 one-stop partner may adopt an alternative defi16 nition of ‘exit’ for the purpose of creating com17 mon exit measures to improve alignment with 

18 workforce programs operated under title I of 

19 such Act. 

20 ‘‘(G) REGULATIONS.—In order to ensure 

21 nationwide comparability of data, the Secretary, 

22 after consultation with the Secretary of Labor 

23 and with States, shall issue regulations gov24 erning the establishment of the performance ac25 countability system under this paragraph and a 


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1 template for performance reports to be used by 

2 all States consistent with subsection (b).’’. 

3 (b) REPORTS ON STATE PERFORMANCE ON HHS 

4 ONLINE DASHBOARD.—Section 407(b) (42 U.S.C. 

5 607(b)) is amended to read as follows: 

6 ‘‘(b) PUBLICATION OF STATE PERFORMANCE.—The 

7 Secretary shall, directly or through the use of grants or 

8 contracts, establish and operate an Internet website that 

9 is accessible to the public, with a dashboard that is regu10 larly updated and provides easy-to-understand information 

11 on the performance of each State program funded under 

12 this part, including a profile for each such program, ex13 pressed by use of a template, which shall include— 

14 ‘‘(1) information on the indicators and requisite 

15 performance levels established for the State under 

16 subsection (a), including, with respect to each such 

17 level, whether the State achieves, exceeds, or fails to 

18 achieve the level on an ongoing basis, including— 

19 ‘‘(A) information on any adjustments made 

20 to the requisite levels using the statistical ad21 justment model described in subsection 

22 (a)(3)(D)(v); and 

23 ‘‘(B) a grade based on the overall perform24 ance of the State, as determined by the Sec25 retary and in consultation with the State, and 


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1 the overall performance shall be graded based 

2 on the performance indicators and weights for 

3 each such indicator as described in subsection 

4 (a); 

5 ‘‘(2) information reported under section 411 on 

6 the characteristics and demographics of individuals 

7 receiving assistance under the State program, in8 cluding— 

9 ‘‘(A) the number and percentage of child10 only cases and reason why the cases are child11 only; and 

12 ‘‘(B) the average weekly number of hours 

13 that each work-eligible individual in the State 

14 program participates in work activities, includ15 ing a separate section showing the number and 

16 percentage of the work-eligible individuals with 

17 zero hours of the participation and the reason 

18 for non-participation; 

19 ‘‘(3) information on the results of improper 

20 payments reviews; 

21 ‘‘(4) a link to the State plan approved under 

22 section 402; and 

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1 uisite performance level or any other requirement 

2 imposed by or under this part.’’. 

3 (c) MODIFICATION OF RULES FOR DETERMINING

4 WHETHER AN INDIVIDUAL IS ENGAGED IN WORK.—Sec5 tion 407(c) (42 U.S.C. 607(c)) is amended— 

6 (1) in paragraph (1)— 

7 (A) in subparagraph (A)— 

8 (i) by striking ‘‘For purposes of sub9 section (b)(1)(B)(i), a’’ and inserting ‘‘A’’; 

10 and 

11 (ii) by striking ‘‘, not fewer than’’ and 

12 all that follows through ‘‘this subsection’’; 

13 and 

14 (B) in subparagraph (B)— 

15 (i) in the matter preceding clause (i), 

16 by striking ‘‘For purposes of subsection 

17 (b)(2)(B), an’’ and inserting ‘‘An’’; 

18 (ii) in clause (i), by striking ‘‘, not 

19 fewer than’’ and all that follows through 

20 ‘‘this subsection’’; and 

21 (iii) in clause (ii), by striking ‘‘, not 

22 fewer than’’ and all that follows through 

23 ‘‘subsection (d)’’; and 

24 (2) in paragraph (2)— 


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1 (A) by striking subparagraphs (A) and 

2 (D); 

3 (B) in each of subparagraphs (B) and (C), 

4 by striking ‘‘For purposes of determining 

5 monthly participation rates under subsection 

6 (b)(1)(B)(i), a’’ and inserting ‘‘A’’; 

7 (C) by redesignating subparagraphs (B) 

8 and (C) as subparagraphs (A) and (B), respec9 tively; and 

10 (D) by adding at the end the following: 

11 ‘‘(C) STATE OPTION FOR PARTICIPATION

12 REQUIREMENT EXEMPTIONS.—For any fiscal 

13 year, a State may, at its option, not require an 

14 individual who is a single custodial parent car15 ing for a child who has not attained 12 months 

16 of age to engage in work, for not more than 12 

17 months.’’. 

18 (d) MODIFICATIONS TO ALLOWABLE WORK ACTIVI19 TIES.—Section 407(d) (42 U.S.C. 607(d)) is amended— 

20 (1) in paragraph (5), by inserting ‘‘, including 

21 apprenticeship’’ before the semicolon; 

22 (2) in paragraph (6), by inserting ‘‘supervised’’ 

23 before ‘‘job search’’; 


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1 (3) in paragraph (8), by striking ‘‘(not to ex2 ceed 12 months with respect to any individual)’’ and 

3 inserting ‘‘, including career technical education’’; 

4 (4) in paragraph (11), by striking ‘‘and’’ at the 

5 end; 

6 (5) in paragraph (12), by striking the period 

7 and inserting ‘‘; and’’; and 

8 (6) by adding at the end the following: 

9 ‘‘(13) participation in an in-home program 

10 teaching parenting skills that complies with the re11 quirements of section 407(c).’’. 

12 (e) PENALTY AGAINST STATES.— 

13 (1) IN GENERAL.—Section 409(a)(3) (42 

14 U.S.C. 609(a)(3)) is amended by striking all that 

15 precedes subparagraph (B) and inserting the fol16 lowing: 

17 ‘‘(3) FAILURE TO SATISFY WORK OUTCOMES

18 AND WORK ENGAGEMENT.— 

19 ‘‘(A) IN GENERAL.—If the Secretary deter20 mines that a State to which a grant is made 

21 under section 403 for a fiscal year has failed to 

22 comply with any of section 407(a)(1), section 

23 408(b)(3), or section 408(b)(4) for the fiscal 

24 year, the Secretary shall reduce the grant pay25 able to the State under section 403(a)(1) for 


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1 the immediately succeeding fiscal year by an 

2 amount equal to the applicable percentage of 

3 the State family assistance grant.’’. 

4 (2) TRANSITION RULE.—The Secretary of 

5 Health and Human Services may not impose a pen6 alty under section 409(a)(3) of the Social Security 

7 Act by reason of the failure of a State to comply 

8 with section 407(a) of such Act for any fiscal year 

9 before fiscal year 2023. 

10 (f) PRO RATA REDUCTION OF ASSISTANCE FOR INDI11 VIDUAL NONCOMPLIANCE.—Section 407(e) (42 U.S.C. 

12 607(e)) is amended by adding at the end the following: 

13 ‘‘(3) PRO RATA REDUCTION.—For purposes of 

14 paragraph (1)(A), the amount of a pro rata reduc15 tion in assistance shall be determined by multiplying 

16 the total amount of monthly assistance that would, 

17 in the absence of the application of this paragraph, 

18 be paid to the entire family, by the ratio of— 

19 ‘‘(A) the number of hours of required work 

20 activities as designated in subsection (d) actu21 ally performed by the individual during the 

22 month; to 

23 ‘‘(B) the number of hours of work activi24 ties that the individual was required to perform 


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1 during the month in accordance with subsection 

2 (c). 

3 ‘‘(4) PENALTIES AND ENGAGEMENT.— 

4 ‘‘(A) IN GENERAL.—Subject to the limita5 tion in (B), if in a given month an individual 

6 who received assistance under this part was re7 quired to engage in work under section 

8 408(b)(4), failed to fulfill those obligations and 

9 was subsequently sanctioned in accordance with 

10 paragraphs (2) and (3) of section 407(e), that 

11 individual shall be judged to be engaged in 

12 work for that month for purposes of section 

13 408(b)(4). 

14 ‘‘(B) LIMITATION.—If an individual re15 ceives no benefits for two consecutive months 

16 due to sanctioning under paragraphs (2) and 

17 (3) of section 407(e), that individual shall not 

18 be counted as engaged in work in subsequent 

19 months for purposes of section 408(b)(4) unless 

20 actual work in accordance with section 407(d) 

21 was resumed.’’. 

22 (g) CONFORMING AMENDMENT.—The heading of sec23 tion 412(c) (42 U.S.C. 612(c)) is amended by striking 

24 ‘‘MINIMUM WORK PARTICIPATION REQUIREMENTS’’ and 


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1 inserting ‘‘REQUIREMENTS FOR WORK OUTCOME MEAS2 URES’’. 

3 SEC. 8. TARGETING FUNDS TO TRULY NEEDY FAMILIES. 

4 (a) PROHIBITION ON USE OF FUNDS FOR FAMILIES

5 WITH INCOME GREATER THAN TWICE THE POVERTY

6 LINE.—Section 404(k) (42 U.S.C. 604(k)) is amended to 

7 read as follows: 

8 ‘‘(k) PROHIBITIONS.— 

9 ‘‘(1) USE OF FUNDS FOR PERSONS WITH IN10 COME GREATER THAN TWICE THE POVERTY LINE.— 

11 A State to which a grant is made under this part 

12 shall not use the grant to provide any assistance or 

13 services to a family whose monthly income exceeds 

14 twice the poverty line (as defined by the Office of 

15 Management and Budget, and revised annually in 

16 accordance with section 673(2) of the Omnibus 

17 Budget Reconciliation Act of 1981 (42 U.S.C. 

18 9902(2))).’’. 

19 (b) ELIMINATION OF LIMITATION ON USE OF FUNDS

20 FOR CASE MANAGEMENT ACTIVITIES.—Section 404(b)(2) 

21 (42 U.S.C. 604(b)(2)) is amended to read as follows: 

22 ‘‘(2) EXCEPTIONS.—Paragraph (1) of this sub23 section shall not apply to the use of a grant for— 

24 ‘‘(A) information technology and comput25 erization needed for tracking, monitoring, or 


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1 data collection required by or under this part; 

2 or 

3 ‘‘(B) case management activities to carry 

4 out section 408(b).’’. 

5 (c) PROHIBITION ON USE OF FUNDS FOR DIRECT

6 SPENDING ON CHILD CARE SERVICES OR ACTIVITIES.— 

7 Section 404(k) (42 U.S.C. 604(k)), as amended by sub8 section (a) of this section, is amended by adding at the 

9 end the following: 

10 ‘‘(2) DIRECT SPENDING ON CHILD CARE SERV11 ICES OR ACTIVITIES.—A State to which a grant is 

12 made under this part shall not use the grant for di13 rect spending on child care and other early childhood 

14 education programs, services, or activities.’’. 

15 (d) LIMITATION ON USE OF FUNDS FOR CHILD WEL16 FARE SERVICES OR ACTIVITIES.—Section 404(k) (42 

17 U.S.C. 604(k)), as amended by subsections (a) and (c) 

18 of this section, is amended— 

19 (1) in the subsection heading, by inserting ‘‘; 

20 LIMITATION’’ after ‘‘PROHIBITIONS’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(3) LIMITATION ON USE OF FUNDS FOR CHILD

23 WELFARE SERVICES OR ACTIVITIES.—A State may 

24 use not more than 10 percent of a grant made to 

25 the State under section 403(a)(1) for child welfare 


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1 services or activities, taking into account any 

2 amount transferred under subsection (d)(2) of this 

3 section.’’. 

4 (e) EXPANSION OF AUTHORITY TO TRANSFER

5 FUNDS.—Section 404(d) (42 U.S.C. 604(d)) is amended 

6 by striking paragraphs (1) through (3) and inserting the 

7 following: 

8 ‘‘(1) IN GENERAL.—A State may transfer not 

9 more than 50 percent of the grant made to the State 

10 under section 403(a)(1) to a State program pursu11 ant to any or all of the following provisions of law: 

12 ‘‘(A) The Child Care and Development 

13 Block Grant Act of 1990. 

14 ‘‘(B) Title I of the Workforce Innovation 

15 and Opportunity Act. 

16 ‘‘(C) Subpart 1 of part B of this title. 

17 ‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE

18 TO SUBPART 1 OF PART B.—A State may transfer 

19 not more than 10 percent of a grant made to the 

20 State under section 403(a)(1) to carry out State 

21 programs operated pursuant to the State plan devel22 oped under subpart 1 of part B, taking into account 

23 any amount used as described in subsection (k)(3) 

24 of this section. 

25 ‘‘(3) APPLICABLE RULES.— 


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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B) of this paragraph, any 

3 amount paid to a State under this part that is 

4 used to carry out a State program pursuant to 

5 a provision of law specified in paragraph (1) 

6 shall not be subject to the requirements of this 

7 part, but shall be subject to the requirements 

8 that apply to Federal funds provided directly 

9 under the provision of law to carry out the pro10 gram, and the expenditure of any amount so 

11 used shall not be considered to be an expendi12 ture under this part. 

13 ‘‘(B) FUNDS TRANSFERRED TO THE

14 WIOA.—In the case of funds transferred under 

15 paragraph (1)(B) of this subsection— 

16 ‘‘(i) the State shall provide an assur17 ance that the funds will be used to support 

18 individuals eligible for assistance or serv19 ices under this part pursuant to subsection 

20 (k)(1); and 

21 ‘‘(ii) not more than 15 percent of the 

22 funds will be reserved for statewide work23 force investment activities referred to in 

24 section 128(a)(1) of the Workforce Innova25 tion and Opportunity Act. 


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1 ‘‘(4) WIOA TRANSFER AUTHORITY NOT AVAIL2 ABLE TO STATES EXCLUDING THE STATE JOBS PRO3 GRAM AS A MANDATORY ONE-STOP PARTNER UNDER

4 THE WIOA.—The authority provided by paragraph 

5 (1)(B) of this subsection may not be exercised by a 

6 State that has provided the notification referred to 

7 in section 407(a)(2)(F).’’. 

8 SEC. 9. TARGETING FUNDS TO CORE PURPOSES. 

9 (a) REQUIREMENT THAT STATES RESERVE 25 PER10 CENT OF JOBS GRANT FOR SPENDING ON CORE ACTIVI11 TIES.—Section 408(a) (42 U.S.C. 608(a)) is amended by 

12 adding at the end the following: 

13 ‘‘(13) REQUIREMENT THAT STATES RESERVE

14 25 PERCENT OF JOBS GRANT FOR SPENDING ON

15 CORE ACTIVITIES.—A State to which a grant is 

16 made under section 403(a)(1) for a fiscal year shall 

17 expend not less than 25 percent of the grant on as18 sistance, case management, work supports and sup19 portive services, work, wage subsidies, work activities 

20 (as defined in section 407(d)), and non-recurring 

21 short-term benefits.’’. 

22 (b) REQUIREMENT THAT AT LEAST 25 PERCENT OF

23 QUALIFIED STATE EXPENDITURES BE FOR CORE ACTIVI24 TIES.—Section 408(a) (42 U.S.C. 608(a)), as amended by 


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•S 2381 IS

1 subsection (a) of this section, is amended by adding at 

2 the end the following: 

3 ‘‘(14) REQUIREMENT THAT AT LEAST 25 PER4 CENT OF QUALIFIED STATE EXPENDITURES BE FOR

5 CORE ACTIVITIES.—Not less than 25 percent of the 

6 qualified State expenditures (as defined in section 

7 409(a)(7)(B)(ii)) of a State during the fiscal year 

8 shall be for assistance, case management, work sup9 ports and supportive services, work, wage subsidies, 

10 work activities (as defined in section 407(d)), and 

11 non-recurring short-term benefits.’’. 

12 (c) PHASE-OUT OF COUNTING OF THIRD-PARTY

13 CONTRIBUTIONS AS QUALIFIED STATE EXPENDI14 TURES.—Section 408(a) (42 U.S.C. 608(a)), as amended 

15 by subsections (a) and (b) of this section, is amended by 

16 adding at the end the following: 

17 ‘‘(15) PHASE-OUT OF COUNTING OF THIRD18 PARTY CONTRIBUTIONS AS QUALIFIED STATE EX19 PENDITURES.— 

20 ‘‘(A) IN GENERAL.—The qualified State 

21 expenditures (as defined in section 

22 409(a)(7)(B)(i)) of a State for a fiscal year 

23 that are attributable to the value of goods and 

24 services provided by a source other than a State 

25 or local government shall not exceed the appliVerDate Sep 11 2014 02:33 Jul 24, 2021 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S2381.IS S2381

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1 cable percentage of the expenditures for the fis2 cal year. 

3 ‘‘(B) APPLICABLE PERCENTAGE.—In sub4 paragraph (A), the term ‘applicable percentage’ 

5 means, with respect to a fiscal year— 

6 ‘‘(i) 75 percent, in the case of fiscal 

7 year 2023; 

8 ‘‘(ii) 50 percent, in the case of fiscal 

9 year 2024; 

10 ‘‘(iii) 25 percent, in the case of fiscal 

11 year 2025; and 

12 ‘‘(iv) 0 percent, in the case of fiscal 

13 year 2026 or any succeeding fiscal year.’’. 

14 SEC. 10. STRENGTHENING PROGRAM INTEGRITY BY MEAS15 URING IMPROPER PAYMENTS. 

16 Section 404 (42 U.S.C. 604) is amended by adding 

17 at the end the following: 

18 ‘‘(l) APPLICABILITY OF IMPROPER PAYMENTS

19 LAWS.— 

20 ‘‘(1) IN GENERAL.—The Improper Payments 

21 Information Act of 2002 and the Improper Pay22 ments Elimination and Recovery Act of 2010 shall 

23 apply to a State in respect of the State program 

24 funded under this part in the same manner in which 

25 such Acts apply to a Federal agency. 


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1 ‘‘(2) REGULATIONS.—Within 2 years after the 

2 date of the enactment of this subsection, the Sec3 retary shall prescribe regulations governing how a 

4 State reviews and reports improper payments under 

5 the State program funded under this part.’’. 

6 SEC. 11. PROHIBITION ON STATE DIVERSION OF FEDERAL 

7 FUNDS TO REPLACE STATE SPENDING. 

8 Section 408(a) (42 U.S.C. 608(a)), as amended by 

9 section 9 of this Act, is amended by adding at the end 

10 the following: 

11 ‘‘(16) NON-SUPPLANTATION REQUIREMENT.— 

12 Funds made available to a State under this part 

13 shall be used to supplement, not supplant, State 

14 general revenue spending on activities described in 

15 section 404.’’. 

16 SEC. 12. INCLUSION OF POVERTY REDUCTION AS A PRO17 GRAM PURPOSE. 

18 Section 401(a) (42 U.S.C. 601(a)) is amended— 

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

20 (3); 

21 (2) by striking the period at the end of para22 graph (4) and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following: 


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1 ‘‘(5) reduce child poverty by increasing employ2 ment entry, retention, and advancement of needy 

3 parents.’’. 

4 SEC. 13. WELFARE FOR NEEDS NOT WEED. 

5 (a) PROHIBITION.—Section 408(a)(12)(A) (42 

6 U.S.C. 608(a)(12)(A)) is amended— 

7 (1) by striking ‘‘or’’ at the end of clause (ii); 

8 (2) by striking the period at the end of clause 

9 (iii) and inserting ‘‘; or’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(iv) any establishment that offers 

12 marihuana (as defined in section 102(16) 

13 of the Controlled Substances Act) for 

14 sale.’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 subsection (a) shall take effect on the date that is 3 years 

17 after the date of the enactment of this Act. 

18 SEC. 14. STRENGTHENING ACCOUNTABILITY THROUGH 

19 HHS APPROVAL OF STATE PLANS. 

20 (a) IN GENERAL.—Section 402 (42 U.S.C. 602) is 

21 amended— 

22 (1) in subsection (a)— 

23 (A) in the matter preceding paragraph 

24 (1)— 


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1 (i) by striking ‘‘27-month’’ and insert2 ing ‘‘24-month’’; and 

3 (ii) by striking ‘‘found’’ and inserting 

4 ‘‘approved that’’; and 

5 (B) in paragraph (1)— 

6 (i) in subparagraph (A)— 

7 (I) by striking clauses (ii) and 

8 (iii) and inserting the following: 

9 ‘‘(ii) Require work-eligible individuals 

10 (as defined in the regulations promulgated 

11 pursuant to section 407(i)(1)(A)(i)) to en12 gage in work activities consistent with sec13 tion 407(c). The document shall describe 

14 any in-home parenting program participa15 tion in which will be considered by the 

16 State as a work activity pursuant to sec17 tion 407(d)(13).’’; 

18 (II) by redesignating clauses (iv) 

19 through (viii) as clauses (iii) through 

20 (vii), respectively; and 

21 (III) by adding at the end the 

22 following: 

23 ‘‘(viii) Describe the case management 

24 practices of the State with respect to the 

25 requirements of section 408(b), provide a 


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1 copy of the form or forms that will be used 

2 to assess a work-eligible individual (as so 

3 defined) and prepare an individual oppor4 tunity plan for the individual, describe how 

5 the State will ensure that such a plan is 

6 reviewed in accordance with section 

7 408(b)(6), and describe how the State will 

8 measure progress under the plan. 

9 ‘‘(ix) Propose the requisite levels of 

10 performance for the State for purposes of 

11 section 407(a) for each year in the 2-year 

12 period referred to in subsection (d) of this 

13 section, and provide an explanation with 

14 supporting data of why each such level is 

15 appropriate. 

16 ‘‘(x) Describe how the State will en17 gage low-income noncustodial parents who 

18 owe child support and how such a parent 

19 will be provided with access to work sup20 port and other services under the program 

21 to which the parent is referred to support 

22 their employment and advancement. 

23 ‘‘(xi) Describe how the State will com24 ply with improper payments provisions in 

25 section 404(l). 


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1 ‘‘(xii) Describe coordination with 

2 other programs, including whether the 

3 State intends to exercise authority pro4 vided by section 404(d) of this Act to 

5 transfer any funds paid to the State under 

6 this part, provide assurance that, in the 

7 case of a transfer to carry out a program 

8 under title I of the Workforce Innovation 

9 and Opportunity Act, the State will comply 

10 with section 404(d)(3)(B) of this Act and 

11 coordinate with the one-stop delivery sys12 tem under the Workforce Innovation and 

13 Opportunity Act, and describe how the 

14 State will coordinate with the programs in15 volved to provide services to families re16 ceiving assistance under the program re17 ferred to in paragraph (1) of this sub18 section. 

19 ‘‘(xiii) Describe how the State will 

20 promote marriage, such as through tem21 porary disregard of the income of a new 

22 spouse when an individual receiving assist23 ance under the State program marries so 

24 that the couple doesn’t automatically lose 

25 benefits due to marriage. 


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1 ‘‘(xiv) Describe how the State will 

2 allow for a transitional period of benefits, 

3 such as through temporary earned income 

4 disregards or a gradual reduction in the 

5 monthly benefit amount, for an individual 

6 receiving assistance who obtains employ7 ment and becomes ineligible due to an in8 crease in income obtained through employ9 ment or through an increase in wages.’’; 

10 and 

11 (ii) in subparagraph (B), by striking 

12 clauses (iv) and (v); 

13 (2) by striking subsection (c) and inserting the 

14 following: 

15 ‘‘(c) PUBLIC AVAILABILITY OF STATE PLANS.—The 

16 Secretary shall make available to the public a link to any 

17 plan or plan amendment submitted by a State under this 

18 subsection.’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(d) 2-YEAR PLAN.—A plan submitted pursuant to 

21 this section shall be designed to be implemented during 

22 a 2-year period. 

23 ‘‘(e) COMBINED PLAN ALLOWED.—A State may sub24 mit to the Secretary and the Secretary of Labor a com25 bined State plan that meets the requirements of subVerDate Sep 11 2014 21:41 Jul 20, 2021 Jkt 019200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S2381.IS S2381

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1 sections (a) and (d) and that is for programs and activities 

2 under the Workforce Innovation and Opportunity Act. 

3 ‘‘(f) APPROVAL OF PLANS.—The Secretary shall ap4 prove any plan submitted pursuant to this section that 

5 meets the requirements of subsections (a) through (d).’’. 

6 (b) DUTIES OF THE SECRETARY.— 

7 (1) COORDINATION OF ACTIVITIES; DISSEMINA8 TION OF INFORMATION.—Section 416 (42 U.S.C. 

9 616) is amended— 

10 (A) by inserting ‘‘(a) IN GENERAL.—’’ be11 fore ‘‘The programs’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(b) COORDINATION OF ACTIVITIES.—The Secretary 

14 shall coordinate all activities of the Department of Health 

15 and Human Services relating to work activities (as defined 

16 in section 407(d)) and requirements and measurement of 

17 employment outcomes, and, to the maximum extent prac18 ticable, coordinate the activities of the Department in this 

19 regard with similar activities of other Federal entities. 

20 ‘‘(c) DISSEMINATION OF INFORMATION.—The Sec21 retary shall disseminate, for voluntary informational pur22 poses, information on practices that scientifically valid re23 search indicates are most successful in improving the qual24 ity of State and tribal programs funded under this part.’’. 

25 (c) TECHNICAL ASSISTANCE.— 


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1 (1) IN GENERAL.—Section 406 (42 U.S.C. 606) 

2 is amended to read as follows: 

3 ‘‘SEC. 406. TECHNICAL ASSISTANCE. 

4 ‘‘(a) IN GENERAL.—The Secretary shall provide tech5 nical assistance to States and Indian tribes (which may 

6 include providing technical assistance on a reimbursable 

7 basis), which shall be provided by qualified experts on 

8 practices grounded in scientifically valid research, where 

9 appropriate, to support activities-related publication of 

10 State performance under section 407(b) and to carry out 

11 State and tribal programs funded under this part. 

12 ‘‘(b) RESERVATION OF FUNDS.—The Secretary shall 

13 reserve not more than 0.25 percent of the amount appro14 priated by section 403(a)(1)(C) for a fiscal year to carry 

15 out subsection (a) of this section.’’. 

16 (2) CONFORMING AMENDMENT.—Section 

17 403(a)(1)(B) (42 U.S.C. 603(a)(1)(B)) is amended 

18 by striking ‘‘percentage specified in section 

19 413(h)(1)’’ and inserting ‘‘the sum of the percent20 ages specified in sections 406(b) and 413(h)’’. 

21 SEC. 15. ALIGNING AND IMPROVING DATA REPORTING. 

22 (a) REQUIREMENT THAT STATES REPORT FULL23 POPULATION DATA.—Section 411(a)(1) (42 U.S.C. 

24 611(a)(1)) is amended— 

25 (1) by striking subparagraph (B); 


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1 (2) by striking ‘‘(1) GENERAL REPORTING RE2 QUIREMENT.—’’; and 

3 (3) by— 

4 (A) redesignating— 

5 (i) subparagraph (A) as paragraph 

6 (1); 

7 (ii) clauses (i) through (xvii) of sub8 paragraph (A) as subparagraphs (A) 

9 through (Q), respectively; 

10 (iii) subclauses (I) through (V) of 

11 clause (ii) as clauses (i) through (v), re12 spectively; 

13 (iv) subclauses (I) through (VII) of 

14 clause (xi) as clauses (i) through (vii), re15 spectively; and 

16 (v) subclauses (I) through (V) of 

17 clause (xvi) as clauses (i) through (v), re18 spectively; and 

19 (B) moving each such redesignated provi20 sion 2 ems to the left. 

21 (b) REPORT ON PARTICIPATION IN WORK ACTIVI22 TIES.—Section 411(a)(1) (42 U.S.C. 611(a)(1)), as 

23 amended by subsection (a)(3) of this section, is amended 

24 by striking subparagraphs (K) and (L) and inserting the 

25 following: 


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1 ‘‘(K) The work eligibility status of each in2 dividual in the family, and— 

3 ‘‘(i) in the case of each work-eligible 

4 individual (as defined in the regulations 

5 promulgated pursuant to section 

6 407(i)(1)(A)(i)) in the family— 

7 ‘‘(I) the number of hours (includ8 ing zero hours) per month of partici9 pation in— 

10 ‘‘(aa) work activities (as de11 fined in section 407(d)); and 

12 ‘‘(bb) any other activity re13 quired by the State to remove a 

14 barrier to employment; and 

15 ‘‘(ii) in the case of each individual in 

16 the family who is not a work-eligible indi17 vidual (as so defined), the reason for that 

18 status. 

19 ‘‘(L) For each work-eligible individual (as 

20 so defined) and each adult in the family who 

21 did not participate in work activities (as so de22 fined) during a month, the reason for the lack 

23 of participation.’’. 


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1 (c) REPORTING OF INFORMATION ON EMPLOYMENT

2 AND EARNINGS OUTCOMES.—Section 411(c) (42 U.S.C. 

3 611(c)) is amended to read as follows: 

4 ‘‘(c) REPORTING OF INFORMATION ON EMPLOYMENT

5 AND EARNINGS OUTCOMES.—The Secretary, in consulta6 tion with the Secretary of Labor, shall determine the in7 formation that is necessary to compute the employment 

8 and earnings outcomes and the statistical adjustment 

9 model for the employment and earnings outcomes required 

10 under section 407, and each eligible State shall collect and 

11 report that information to the Secretary.’’. 

12 SEC. 16. TECHNICAL CORRECTIONS TO DATA EXCHANGE 

13 STANDARDS TO IMPROVE PROGRAM COORDI14 NATION. 

15 (a) IN GENERAL.—Section 411(d) (42 U.S.C. 

16 611(d)) is amended to read as follows: 

17 ‘‘(d) DATA EXCHANGE STANDARDS FOR IMPROVED

18 INTEROPERABILITY.— 

19 ‘‘(1) DESIGNATION.—The Secretary shall, in 

20 consultation with an interagency work group estab21 lished by the Office of Management and Budget and 

22 considering State government perspectives, by rule, 

23 designate data exchange standards to govern, under 

24 this part— 


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•S 2381 IS

1 ‘‘(A) necessary categories of information 

2 that State agencies operating programs under 

3 State plans approved under this part are re4 quired under applicable Federal law to elec5 tronically exchange with another State agency; 

6 and 

7 ‘‘(B) Federal reporting and data exchange 

8 required under applicable Federal law. 

9 ‘‘(2) REQUIREMENTS.—The data exchange 

10 standards required by paragraph (1) shall, to the ex11 tent practicable— 

12 ‘‘(A) incorporate a widely accepted, non13 proprietary, searchable, computer-readable for14 mat, such as the eXtensible Markup Language; 

15 ‘‘(B) contain interoperable standards devel16 oped and maintained by intergovernmental 

17 partnerships, such as the National Information 

18 Exchange Model; 

19 ‘‘(C) incorporate interoperable standards 

20 developed and maintained by Federal entities 

21 with authority over contracting and financial 

22 assistance; 

23 ‘‘(D) be consistent with and implement ap24 plicable accounting principles; 


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1 ‘‘(E) be implemented in a manner that is 

2 cost-effective and improves program efficiency 

3 and effectiveness; and 

4 ‘‘(F) be capable of being continually up5 graded as necessary. 

6 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

7 this subsection shall be construed to require a 

8 change to existing data exchange standards found to 

9 be effective and efficient.’’. 

10 (b) EFFECTIVE DATE.—Not later than the date that 

11 is 24 months after the date of the enactment of this sec12 tion, the Secretary of Health and Human Services shall 

13 issue a proposed rule that— 

14 (1) identifies federally required data exchanges, 

15 include specification and timing of exchanges to be 

16 standardized, and address the factors used in deter17 mining whether and when to standardize data ex18 changes; and 

19 (2) specifies State implementation options and 

20 describes future milestones. 

21 SEC. 17. SET-ASIDE FOR ECONOMIC DOWNTURNS. 

22 Section 404(e) (42 U.S.C. 604(e)) is amended to read 

23 as follows: 

24 ‘‘(e) DEADLINES FOR OBLIGATION AND EXPENDI25 TURES OF FUNDS BY STATES.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), a State to which a grant is made under 

3 section 403(a)(1) shall obligate the funds within 2 

4 years after the date the funds are made available, 

5 and shall expend the funds within 3 years after such 

6 date. 

7 ‘‘(2) EXCEPTION FOR LIMITED AMOUNT OF

8 FUNDS SET ASIDE FOR FUTURE USE.— 

9 ‘‘(A) IN GENERAL.—A State to which 

10 funds are paid under section 403(a)(1) may re11 serve not more than 15 percent of the funds for 

12 use in the State program funded under this 

13 part without fiscal year limitation. 

14 ‘‘(B) NOTICE OF INTENT TO RESERVE

15 FUNDS.—A State that intends to reserve funds 

16 paid to the State under section 402(a)(1) shall 

17 notify the Secretary of the intention not later 

18 than the end of the period in which the funds 

19 are available for obligation without regard to 

20 subparagraph (A) of this paragraph.’’. 

21 SEC. 18. DEFINITIONS RELATED TO USE OF FUNDS. 

22 Section 419 (42 U.S.C. 619) is amended by adding 

23 at the end the following: 

24 ‘‘(6) ASSISTANCE.—The term ‘assistance’ 

25 means cash, payments, vouchers, and other forms of 


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•S 2381 IS

1 benefits designed to meet a family’s ongoing basic 

2 needs (such as for food, clothing, shelter, utilities, 

3 household goods, personal care items, and general 

4 incidental expenses). 

5 ‘‘(7) WORK SUPPORTS.—The term ‘work sup6 ports’ means assistance and non-assistance transpor7 tation benefits (such as the value of allowances, bus 

8 tokens, car payments, auto repair, auto insurance 

9 reimbursement, and van services) provided in order 

10 to help families obtain, retain, or advance in employ11 ment, participate in work activities (as defined in 

12 section 407(d)), or as a non-recurrent, short-term 

13 benefit, including goods provided to individuals in 

14 order to help them obtain or maintain employment 

15 (such as tools, uniforms, fees to obtain special li16 censes, bonuses, incentives, and work support allow17 ances and expenditures for job access). 

18 ‘‘(8) SUPPORTIVE SERVICES.—The term ‘sup19 portive services’ means services such as domestic vio20 lence services, and mental health, substance abuse 

21 and disability services, housing counseling services, 

22 and other family supports, except to the extent that 

23 the provision of the service would violate section 

24 408(a)(6). 


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1 ‘‘(9) JOBS BENEFIT.—The term ‘JOBS ben2 efit’ means— 

3 ‘‘(A) assistance; or 

4 ‘‘(B) wage subsidies that are paid, with 

5 funds provided under section 403(a) or with 

6 qualified State expenditures, with respect to a 

7 person who— 

8 ‘‘(i) was a work-eligible individual (as 

9 defined in the regulations promulgated 

10 pursuant to section 407(i)(1)(A)(i)) at the 

11 time of entry into subsidized employment, 

12 such as on-the-job training or apprentice13 ship; and 

14 ‘‘(ii) is not receiving assistance.’’. 

15 SEC. 19. ELIMINATION OF OBSOLETE PROVISIONS. 

16 (a) ELIMINATION OF SUPPLEMENTAL GRANTS TO

17 STATES.—Section 403(a) (42 U.S.C. 603(a)) is amended 

18 by striking paragraph (3). 

19 (b) ELIMINATION OF BONUS TO REWARD HIGH PER20 FORMANCE STATES.— 

21 (1) IN GENERAL.—Section 403(a) (42 U.S.C. 

22 603(a)) is amended by striking paragraph (4). 

23 (2) CONFORMING AMENDMENT.—Section 

24 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 

25 striking ‘‘403(a)(4),’’. 


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1 (c) ELIMINATION OF WELFARE-TO-WORK GRANTS.— 

2 (1) IN GENERAL.—Section 403(a) (42 U.S.C. 

3 603(a)) is amended by striking paragraph (5). 

4 (2) CONFORMING AMENDMENTS.— 

5 (A) ELIMINATION OF EXCLUSION FROM

6 TIME LIMIT.—Section 408(a)(7) (42 U.S.C. 

7 608(a)(7)) is amended by striking subpara8 graph (G). 

9 (B) ELIMINATION OF PENALTY FOR MIS10 USE OF COMPETITIVE WELFARE-TO-WORK

11 FUNDS.—Section 409(a)(1) (42 U.S.C. 

12 609(a)(1)) is amended by striking subpara13 graph (C). 

14 (C) ELIMINATION OF EXCLUSION FROM

15 QUALIFIED STATE EXPENDITURES OF STATE

16 FUNDS USED TO MATCH WELFARE-TO-WORK

17 GRANT FUNDS.—Section 409(a)(7)(B)(iv) (42 

18 U.S.C. 609(a)(7)(B)(iv)) is amended in the 1st 

19 sentence— 

20 (i) by adding ‘‘or’’ at the end of sub21 clause (II); and 

22 (ii) by striking subclause (III) and re23 designating subclause (IV) as subclause 

24 (III). 


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47 

•S 2381 IS

1 (D) ELIMINATION OF PENALTY FOR FAIL2 URE OF STATE TO MAINTAIN HISTORIC EFFORT

3 DURING YEAR IN WHICH WELFARE-TO-WORK

4 GRANT IS RECEIVED.—Section 409(a) (42 

5 U.S.C. 609(a)) is amended by striking para6 graph (13). 

7 (E) ELIMINATION OF REQUIREMENTS RE8 LATING TO WELFARE-TO-WORK GRANTS IN

9 QUARTERLY STATE REPORTS.—Section 411(a) 

10 (42 U.S.C. 611(a)), as amended by section 

11 15(a) of this Act, is amended— 

12 (i) in paragraph (1), by striking ‘‘(ex13 cept for information relating to activities 

14 carried out under section 403(a)(5))’’; and 

15 (ii) in each of paragraphs (2) through 

16 (4), by striking the comma and all that fol17 lows and inserting a period. 

18 (F) INDIAN TRIBAL PROGRAMS.—Section 

19 412(a) (42 U.S.C. 612(a)) is amended by strik20 ing paragraph (3). 

21 (G) ELIMINATION OF REQUIREMENT TO

22 DISCLOSE CERTAIN INFORMATION TO PRIVATE

23 INDUSTRY COUNCIL RECEIVING WELFARE-TO24 WORK FUNDS.—Section 454A(f) (42 U.S.C. 

25 654a(f)) is amended by striking paragraph (5). 


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•S 2381 IS

1 (H) GRANTS TO TERRITORIES.—Section 

2 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended 

3 by striking ‘‘403(a)(5),’’. 

4 (d) ELIMINATION OF CONTINGENCY FUND.— 

5 (1) IN GENERAL.—Section 403 (42 U.S.C. 603) 

6 is amended by striking all of subsection (b) except 

7 paragraph (5). 

8 (2) CONFORMING AMENDMENTS.— 

9 (A) TRANSFER OF NEEDY STATE DEFINI10 TION.— 

11 (i) IN GENERAL.—Paragraph (5) of 

12 section 403(b) (42 U.S.C. 603(b)(5)) is— 

13 (I) amended— 

14 (aa) in the matter preceding 

15 subparagraph (A), by striking 

16 ‘‘paragraph (4)’’ and inserting 

17 ‘‘subparagraph (C)’’; 

18 (bb) in each of subpara19 graphs (A) and (B), by redesig20 nating clauses (i) and (ii) as sub21 clauses (I) and (II), respectively; 

22 (cc) by redesignating sub23 paragraphs (A) and (B) as 

24 clauses (i) and (ii), respectively; 


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1 (dd) by redesignating such 

2 paragraph as subparagraph (D); 

3 and 

4 (ee) by moving each provi5 sion 2 ems to the right; and 

6 (II) as so amended, hereby trans7 ferred into section 409(a)(3) (42 

8 U.S.C. 609(a)(3)) and added to the 

9 end of such section. 

10 (ii) CONFORMING AMENDMENT.—Sec11 tion 409(a)(3)(C) (42 U.S.C. 

12 609(a)(3)(C)) is amended by striking ‘‘(as 

13 defined in section 403(b)(5))’’. 

14 (B) ELIMINATION OF PENALTY FOR FAIL15 URE OF STATE RECEIVING AMOUNTS FROM

16 CONTINGENCY FUND TO MAINTAIN 100 PER17 CENT OF HISTORIC EFFORT.—Section 409(a) 

18 (42 U.S.C. 609(a)) is amended by striking 

19 paragraph (10). 

20 (e) CONFORMING AMENDMENTS RELATED TO ELIMI21 NATION OF FEDERAL LOANS FOR STATE WELFARE PRO22 GRAMS.— 

23 (1) ELIMINATION OF ASSOCIATED PENALTY

24 PROVISION.— 


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1 (A) IN GENERAL.—Section 409(a) (42 

2 U.S.C. 609(a)) is amended by striking para3 graph (6). 

4 (B) CONFORMING AMENDMENTS.—Section 

5 412(g)(1) (42 U.S.C. 612(g)(1)) is amended by 

6 striking ‘‘(a)(6),’’. 

7 (2) ELIMINATION OF PROVISION PROVIDING

8 FOR TRIBAL ELIGIBILITY.—Section 412 (42 U.S.C. 

9 612) is amended by striking subsection (f). 

10 (3) ELIMINATION OF DISREGARD OF LOAN IN

11 APPLYING LIMIT ON PAYMENTS TO THE TERRI12 TORIES.—Section 1108(a)(2) (42 U.S.C. 

13 1308(a)(2)) is amended by striking ‘‘406,’’. 

14 (f) ELIMINATION OF LIMITATIONS ON OTHER STATE

15 PROGRAMS FUNDED WITH QUALIFIED STATE EXPENDI16 TURES.— 

17 (1) The following provisions are each amended 

18 by striking ‘‘or any other State program funded with 

19 qualified State expenditures (as defined in section 

20 409(a)(7)(B)(i))’’: 

21 (A) Paragraphs (1) and (2) of section 

22 407(e) (42 U.S.C. 607(e)(1) and (2)). 

23 (B) Section 411(a)(1) (42 U.S.C. 

24 611(a)(1)), as amended by section 

25 15(a)(3)(A)(i) of this Act. 


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1 (C) Subsections (d) and (e)(1) of section 

2 413 (42 U.S.C. 613(d) and (e)(1)). 

3 (2) Section 413(a) (42 U.S.C. 613(a)) is 

4 amended by striking ‘‘and any other State program 

5 funded with qualified State expenditures (as defined 

6 in section 409(a)(7)(B)(i))’’. 

7 (g) CONFORMING AMENDMENTS RELATED TO ELIMI8 NATION OF REPORT.— 

9 (1) IN GENERAL.—Section 409(a)(2) (42 

10 U.S.C. 609(a)(2)) is amended— 

11 (A) in the paragraph heading, by inserting 

12 ‘‘QUARTERLY’’ before ‘‘REPORT’’; 

13 (B) in subparagraph (A)(ii), by striking 

14 ‘‘clause (i)’’ and inserting ‘‘subparagraph (A)’’; 

15 (C) by striking ‘‘(A) QUARTERLY RE16 PORTS.—’’; 

17 (D) by striking subparagraph (B); and 

18 (E) by redesignating clauses (i) and (ii) of 

19 subparagraph (A) as subparagraphs (A) and 

20 (B), respectively (and adjusting the margins ac21 cordingly). 

22 (2) CONFORMING AMENDMENTS.— 

23 (A) Section 409(b)(2) (42 U.S.C. 

24 609(b)(2)) is amended by striking ‘‘and,’’ and 

25 all that follows and inserting a period. 


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1 (B) Section 409(c)(4) (42 U.S.C. 

2 609(c)(4)) is amended by striking ‘‘(2)(B),’’. 

3 (h) ANNUAL REPORTS TO CONGRESS.—Section 

4 411(b)(1)(A) (42 U.S.C. 611(b)(1)(A)) is amended by 

5 striking ‘‘participation rates’’ and inserting ‘‘outcome 

6 measures’’. 

7 (i) REDUCTION IN FORCE PROVISIONS.—Section 

8 416(a) (42 U.S.C. 616(a)), as so designated by section 

9 14(b)(1)(A) of this Act, is amended by striking ‘‘, and the 

10 Secretary’’ and all that follows and inserting a period. 

11 (j) CONFORMING CROSS-REFERENCES.— 

12 (1) Section 409 (42 U.S.C. 609) is amended— 

13 (A) in subsection (a)(7)(B)(i)(III), by 

14 striking ‘‘(12)’’ and inserting ‘‘(10)’’; 

15 (B) in subsection (a) (as amended by sub16 sections (c)(2)(D), (d)(2)(B), and (e)(1)(A) of 

17 this section), by redesignating paragraphs (7), 

18 (8), (9), (11), (12), (14), (15), and (16) as 

19 paragraphs (6) through (13), respectively; 

20 (C) in subsection (b)(2), by striking ‘‘(8), 

21 (10), (12), or (13)’’ and inserting ‘‘or (10)’’; 

22 and 

23 (D) in subsection (c)(4), by striking ‘‘(8), 

24 (10), (12), (13), or (16)’’ and inserting ‘‘(10), 

25 or (13)’’. 


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1 (2) Section 452 (42 U.S.C. 652) is amended in 

2 each of subsections (d)(3)(A)(i) and (g)(1) by strik3 ing ‘‘409(a)(8)’’ and inserting ‘‘409(a)(7)’’. 

4 (k) MODIFICATIONS TO MAINTENANCE-OF-EFFORT

5 REQUIREMENT.—Section 409(a)(6)(B)(i) (42 U.S.C. 

6 609(a)(6)(B)(i)), as redesignated by subsection (j)(1)(B) 

7 of this section, is amended— 

8 (1) in subclause (I)— 

9 (A) in the matter preceding item (aa), by 

10 striking ‘‘all State programs’’ and inserting 

11 ‘‘the State program funded under this part’’; 

12 (B) by redesignating items (dd) and (ee) 

13 as items (ee) and (ff), respectively, and insert14 ing after item (cc) the following: 

15 ‘‘(dd) Expenditures for a 

16 purpose described in paragraph 

17 (3), (4), or (5) of section 

18 401(a).’’; and 

19 (C) in item (ee) (as so redesignated), by 

20 striking ‘‘and (ee)’’ and inserting ‘‘(dd), and 

21 (ff)’’; 

22 (2) by striking subclause (V); and 

23 (3) in subclause (IV), by inserting ‘‘, except any 

24 of such families whose monthly income exceeds twice 

25 the poverty line (as defined by the Office of ManageVerDate Sep 11 2014 21:41 Jul 20, 2021 Jkt 019200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S2381.IS S2381

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1 ment and Budget, and revised annually in accord2 ance with section 673(2) of the Omnibus Budget 

3 Reconciliation Act of 1981 (42 U.S.C. 9902(2)))’’ 

4 before the period. 

5 SEC. 20. EFFECTIVE DATE. 

6 Except as provided in section 13(b), the amendments 

7 made by this Act shall take effect on October 1, 2022. 

Æ 


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