I 

109TH CONGRESS 

1ST SESSION H. R. 240

To reauthorize and improve the program of block grants to States for temporary assistance for needy families, improve access to quality child 

care, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 4, 2005

Ms. PRYCE of Ohio (for herself, Mr. THOMAS, Mr. BOEHNER, Mr. BARTON

of Texas, Mr. GOODLATTE, Mr. HERGER, Mr. MCKEON, Mr. BILIRAKIS, 

Mr. DELAY, Mr. SHAW, Mr. CANTOR, Mr. ENGLISH of Pennsylvania, Mr. 

CAMP, Mrs. JOHNSON of Connecticut, Mr. WELLER, Mr. WILSON of 

South Carolina, and Mr. KLINE) introduced the following bill; which was 

referred to the Committee on Ways and Means, and in addition to the 

Committees on Energy and Commerce, Education and the Workforce, 

Agriculture, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL

To reauthorize and improve the program of block grants 

to States for temporary assistance for needy families, 

improve access to quality child care, 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,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Personal Responsi3 bility, Work, and Family Promotion Act of 2005’’. 

4 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

Sec. 4. Findings. 

TITLE I—TANF 

Sec. 101. Purposes. 

Sec. 102. Family assistance grants. 

Sec. 103. Promotion of family formation and healthy marriage. 

Sec. 104. Supplemental grant for population increases in certain States. 

Sec. 105. Bonus to reward employment achievement. 

Sec. 106. Contingency fund. 

Sec. 107. Use of funds. 

Sec. 108. Repeal of Federal loan for State welfare programs. 

Sec. 109. Universal engagement and family self-sufficiency plan requirements. 

Sec. 110. Work participation requirements. 

Sec. 111. Maintenance of effort. 

Sec. 112. Performance improvement. 

Sec. 113. Data collection and reporting. 

Sec. 114. Direct funding and administration by Indian tribes. 

Sec. 115. Research, evaluations, and national studies. 

Sec. 116. Studies by the Census Bureau and the Government Accountability 

Office. 

Sec. 117. Definition of assistance. 

Sec. 118. Technical corrections. 

Sec. 119. Fatherhood program. 

Sec. 120. State option to make TANF programs mandatory partners with onestop employment training centers. 

Sec. 121. Sense of the Congress. 

Sec. 122. Extension through fiscal year 2005. 

TITLE II—CHILD CARE 

Sec. 201. Short title. 

Sec. 202. Goals. 

Sec. 203. Authorization of appropriations. 

Sec. 204. Application and plan. 

Sec. 205. Activities to improve the quality of child care. 

Sec. 206. Report by Secretary. 

Sec. 207. Definitions. 

Sec. 208. Entitlement funding. 

TITLE III—CHILD SUPPORT 
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Sec. 301. Federal matching funds for limited pass through of child support 

payments to families receiving TANF. 

Sec. 302. State option to pass through all child support payments to families 

that formerly received TANF. 

Sec. 303. Mandatory review and adjustment of child support orders for families 

receiving TANF. 

Sec. 304. Mandatory fee for successful child support collection for family that 

has never received TANF. 

Sec. 305. Report on undistributed child support payments. 

Sec. 306. Decrease in amount of child support arrearage triggering passport 

denial. 

Sec. 307. Use of tax refund intercept program to collect past-due child support 

on behalf of children who are not minors. 

Sec. 308. Garnishment of compensation paid to veterans for service-connected 

disabilities in order to enforce child support obligations. 

Sec. 309. Improving Federal debt collection practices. 

Sec. 310. Maintenance of technical assistance funding. 

Sec. 311. Maintenance of Federal Parent Locator Service funding. 

TITLE IV—CHILD WELFARE 

Sec. 401. Extension of authority to approve demonstration projects. 

Sec. 402. Elimination of limitation on number of waivers. 

Sec. 403. Elimination of limitation on number of States that may be granted 

waivers to conduct demonstration projects on same topic. 

Sec. 404. Elimination of limitation on number of waivers that may be granted 

to a single State for demonstration projects. 

Sec. 405. Streamlined process for consideration of amendments to and extensions of demonstration projects requiring waivers. 

Sec. 406. Availability of reports. 

Sec. 407. Technical correction. 

TITLE V—SUPPLEMENTAL SECURITY INCOME 

Sec. 501. Review of State agency blindness and disability determinations. 

TITLE VI—STATE AND LOCAL FLEXIBILITY 

Sec. 601. Program coordination demonstration projects. 

Sec. 602. State food assistance block grant demonstration project. 

TITLE VII—ABSTINENCE EDUCATION 

Sec. 701. Extension of abstinence education program. 

TITLE VIII—TRANSITIONAL MEDICAL ASSISTANCE 

Sec. 801. Extension of medicaid transitional medical assistance program 

through fiscal year 2006. 

Sec. 802. Adjustment to payments for medicaid administrative costs to prevent 

duplicative payments and to fund extension of transitional 

medical assistance. 

TITLE IX—EFFECTIVE DATE 

Sec. 901. Effective date.
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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 amendment or repeal shall be considered to be 

6 made to a section or other provision of the Social Security 

7 Act. 

8 SEC. 4. FINDINGS. 

9 The Congress makes the following findings: 

10 (1) The Temporary Assistance for Needy Fami11 lies (TANF) Program established by the Personal 

12 Responsibility and Work Opportunity Reconciliation 

13 Act of 1996 (Public Law 104–193) has succeeded in 

14 moving families from welfare to work and reducing 

15 child poverty. 

16 (A) There has been a dramatic increase in 

17 the employment of current and former welfare 

18 recipients. The percentage of working recipients 

19 reached an all-time high in fiscal year 1999 and 

20 continued steady in fiscal years 2000 and 2001. 

21 In fiscal year 2003, 31.3 percent of adult re22 cipients were counted as meeting the work par23 ticipation requirements. All States but one met 

24 the overall participation rate standard in fiscal 

25 year 2003, as did the District of Columbia and 

26 Puerto Rico. 
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1 (B) Earnings for welfare recipients re2 maining on the rolls have also increased signifi3 cantly, as have earnings for female-headed 

4 households. The increases have been particu5 larly large for the bottom 2 income quintiles, 

6 that is, those women who are most likely to be 

7 former or present welfare recipients. 

8 (C) Welfare dependency has plummeted. 

9 As of June 2004, 1,969,909 families and 

10 4,727,291 individuals were receiving assistance. 

11 Accordingly, the number of families in the wel12 fare caseload and the number of individuals re13 ceiving cash assistance declined 55 percent and 

14 61 percent, respectively, since the enactment of 

15 TANF. 

16 (D) The child poverty rate continued to de17 cline between 1996 and 2003, falling 14 percent 

18 from 20.5 to 17.6 percent. Child poverty rates 

19 for African-American and Hispanic children 

20 have also fallen dramatically during the past 7 

21 years. 

22 (2) As a Nation, we have made substantial 

23 progress in reducing teen pregnancies and births, 

24 slowing increases in nonmarital childbearing, and 
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1 improving child support collections and paternity es2 tablishment. 

3 (A) The birth rate to teenagers declined 30 

4 percent from its high in 1991 to 2002. The 

5 2002 teenage birth rate of 43.0 per 1,000 

6 women aged 15–19 is the lowest recorded birth 

7 rate for teenagers. 

8 (B) During the period from 1991 through 

9 2001, teenage birth rates fell in all States and 

10 the District of Columbia, Puerto Rico, Guam, 

11 and the Virgin Islands. Declines also have 

12 spanned age, racial, and ethnic groups. There 

13 has been success in lowering the birth rate for 

14 both younger and older teens. The birth rate 

15 for those 15–17 years of age has declined 40 

16 percent since 1991, and the rate for those 18 

17 and 19 has declined 23 percent. The rate for 

18 African American teens—until recently the 

19 highest—has declined the most—42 percent 

20 from 1991 through 2002. 

21 (C) Since the enactment of the Personal 

22 Responsibility and Work Opportunity Reconcili23 ation Act of 1996, child support collections 

24 within the child support enforcement system 

25 have grown every year, increasing from 
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1 $12,000,000,000 in fiscal year 1996 to over 

2 $21,000,000,000 in fiscal year 2003. The num3 ber of paternities established or acknowledged 

4 in fiscal year 2003 (over 1,500,000) includes a 

5 more than 100 percent increase through in-hos6 pital acknowledgement programs—862,043 in 

7 2003 compared to 324,652 in 1996. Child sup8 port collections were made in nearly 8,000,000 

9 cases in fiscal year 2003, significantly more 

10 than the almost 4,000,000 cases having a col11 lection in 1996. 

12 (3) The Personal Responsibility and Work Op13 portunity Reconciliation Act of 1996 gave States 

14 great flexibility in the use of Federal funds to de15 velop innovative programs to help families leave wel16 fare and begin employment and to encourage the 

17 formation of 2-parent families. 

18 (A) Total Federal and State TANF ex19 penditures in fiscal year 2003 were 

20 $26,300,000,000, up from $25,400,000,000 in 

21 fiscal year 2002 and $22,600,000,000 in fiscal 

22 year 1999. This increased spending is attrib23 utable to significant new investments in sup24 portive services in the TANF program, such as 

25 child care and activities to support work. 
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1 (B) Since the welfare reform effort began 

2 there has been a dramatic increase in work par3 ticipation (including employment, community 

4 service, and work experience) among welfare re5 cipients, as well as an unprecedented reduction 

6 in the caseload because recipients have left wel7 fare for work. 

8 (C) States are making policy choices and 

9 investment decisions best suited to the needs of 

10 their citizens. 

11 (i) To expand aid to working families, 

12 almost all States disregard a portion of a 

13 family’s earned income when determining 

14 benefit levels. 

15 (ii) Most States increased the limits 

16 on countable assets above the former Aid 

17 to Families with Dependent Children 

18 (AFDC) program. Every State has in19 creased the vehicle asset level above the 

20 prior AFDC limit for a family’s primary 

21 automobile. 

22 (iii) States are experimenting with 

23 programs to promote marriage and pater24 nal involvement. Over half of the States 

25 have eliminated restrictions on 2-parent 
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1 families. Many States use TANF, child 

2 support, or State funds to support commu3 nity-based activities to help fathers become 

4 more involved in their children’s lives or 

5 strengthen relationships between mothers 

6 and fathers. 

7 (4) However, despite this success, there is still 

8 progress to be made. Policies that support and pro9 mote more work, strengthen families, and enhance 

10 State flexibility are necessary to continue to build on 

11 the success of welfare reform. 

12 (A) Significant numbers of welfare recipi13 ents still are not engaged in employment-related 

14 activities. While all States have met the overall 

15 work participation rates required by law, in an 

16 average month, only 41 percent of all families 

17 with an adult participated in work activities 

18 that were countable toward the State’s partici19 pation rate. In fiscal year 2003, four jurisdic20 tions failed to meet the more rigorous 2-parent 

21 work requirements, and 25 jurisdictions (States 

22 and territories) are not subject to the 2-parent 

23 requirements, most because they moved their 2-

24 parent cases to separate State programs where 
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1 they are not subject to a penalty for failing the 

2 2-parent rates. 

3 (B) In 2002, 34 percent of all births in the 

4 U.S. were to unmarried women. And, with 

5 fewer teens entering marriage, the proportion of 

6 births to unmarried teens has increased dra7 matically (80 percent in 2002 versus 30 percent 

8 in 1970). The negative consequences of out-of9 wedlock birth on the mother, the child, the fam10 ily, and society are well documented. These in11 clude increased likelihood of welfare depend12 ency, increased risks of low birth weight, poor 

13 cognitive development, child abuse and neglect, 

14 and teen parenthood, and decreased likelihood 

15 of having an intact marriage during adulthood. 

16 (C) There has been a dramatic rise in co17 habitation as marriages have declined. It is esti18 mated that 40 percent of children are expected 

19 to live in a cohabiting-parent family at some 

20 point during their childhood. Children in single21 parent households and cohabiting-parent house22 holds are at much higher risk of child abuse 

23 than children in intact married families. 

24 (D) Children who live apart from their bio25 logical fathers, on average, are more likely to be 
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1 poor, experience educational, health, emotional, 

2 and psychological problems, be victims of child 

3 abuse, engage in criminal behavior, and become 

4 involved with the juvenile justice system than 

5 their peers who live with their married, biologi6 cal mother and father. A child living with a sin7 gle mother is nearly 5 times as likely to be poor 

8 as a child living in a married-couple family. In 

9 2003, in married-couple families, the child pov10 erty rate was 8.6 percent, and in households 

11 headed by a single mother the poverty rate was 

12 41.7 percent. 

13 (5) Therefore, it is the sense of the Congress 

14 that increasing success in moving families from wel15 fare to work, as well as in promoting healthy mar16 riage and other means of improving child well-being, 

17 are very important Government interests and the 

18 policy contained in part A of title IV of the Social 

19 Security Act (as amended by this Act) is intended 

20 to serve those ends. 

21 TITLE I—TANF 

22 SEC. 101. PURPOSES. 

23 Section 401(a) (42 U.S.C. 601(a)) is amended—
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1 (1) in the matter preceding paragraph (1), by 

2 striking ‘‘increase’’ and inserting ‘‘improve child 

3 well-being by increasing’’; 

4 (2) in paragraph (1), by inserting ‘‘and serv5 ices’’ after ‘‘assistance’’; 

6 (3) in paragraph (2), by striking ‘‘parents on 

7 government benefits’’ and inserting ‘‘families on gov8 ernment benefits and reduce poverty’’; and 

9 (4) in paragraph (4), by striking ‘‘two-parent 

10 families’’ and inserting ‘‘healthy, 2-parent married 

11 families, and encourage responsible fatherhood’’. 

12 SEC. 102. FAMILY ASSISTANCE GRANTS. 

13 (a) EXTENSION OF AUTHORITY.—Section 

14 403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is amended—

15 (1) by striking ‘‘1996, 1997, 1998, 1999, 2000, 

16 2001, 2002, and 2003’’ and inserting ‘‘2006 

17 through 2010’’; and 

18 (2) by inserting ‘‘payable to the State for the 

19 fiscal year’’ before the period. 

20 (b) STATE FAMILY ASSISTANCE GRANT.—Section 

21 403(a)(1)(C) (42 U.S.C. 603(a)(1)(C)) is amended by 

22 striking ‘‘fiscal year 2003’’ and inserting ‘‘each of fiscal 

23 years 2006 through 2010’’. 

24 (c) MATCHING GRANTS FOR THE TERRITORIES.—

25 Section 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by 
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1 striking ‘‘1997 through 2003’’ and inserting ‘‘2006 

2 through 2010’’. 

3 SEC. 103. PROMOTION OF FAMILY FORMATION AND 

4 HEALTHY MARRIAGE. 

5 (a) STATE PLANS.—Section 402(a)(1)(A) (42 U.S.C. 

6 602(a)(1)(A)) is amended by adding at the end the fol7 lowing: 

8 ‘‘(vii) Encourage equitable treatment 

9 of married, 2-parent families under the 

10 program referred to in clause (i).’’. 

11 (b) HEALTHY MARRIAGE PROMOTION GRANTS; RE12 PEAL OF BONUS FOR REDUCTION OF ILLEGITIMACY

13 RATIO.—

14 (1) IN GENERAL.—Section 403(a)(2) (42 

15 U.S.C. 603(a)(2)) is amended to read as follows: 

16 ‘‘(2) HEALTHY MARRIAGE PROMOTION

17 GRANTS.—

18 ‘‘(A) AUTHORITY.—The Secretary shall 

19 award competitive grants to States, territories, 

20 and tribal organizations for not more than 50 

21 percent of the cost of developing and imple22 menting innovative programs to promote and 

23 support healthy, married, 2-parent families. 

24 ‘‘(B) HEALTHY MARRIAGE PROMOTION AC25 TIVITIES.—Funds provided under subparagraph 
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1 (A) shall be used to support any of the fol2 lowing programs or activities: 

3 ‘‘(i) Public advertising campaigns on 

4 the value of marriage and the skills needed 

5 to increase marital stability and health. 

6 ‘‘(ii) Education in high schools on the 

7 value of marriage, relationship skills, and 

8 budgeting. 

9 ‘‘(iii) Marriage education, marriage 

10 skills, and relationship skills programs, 

11 that may include parenting skills, financial 

12 management, conflict resolution, and job 

13 and career advancement, for non-married 

14 pregnant women and non-married expect15 ant fathers. 

16 ‘‘(iv) Pre-marital education and mar17 riage skills training for engaged couples 

18 and for couples or individuals interested in 

19 marriage. 

20 ‘‘(v) Marriage enhancement and mar21 riage skills training programs for married 

22 couples. 

23 ‘‘(vi) Divorce reduction programs that 

24 teach relationship skills. 
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1 ‘‘(vii) Marriage mentoring programs 

2 which use married couples as role models 

3 and mentors in at-risk communities. 

4 ‘‘(viii) Programs to reduce the dis5 incentives to marriage in means-tested aid 

6 programs, if offered in conjunction with 

7 any activity described in this subpara8 graph. 

9 ‘‘(C) APPROPRIATION.—

10 ‘‘(i) IN GENERAL.—Out of any money 

11 in the Treasury of the United States not 

12 otherwise appropriated, there are appro13 priated for each of fiscal years 2005 

14 through 2010 $100,000,000 for grants 

15 under this paragraph. 

16 ‘‘(ii) EXTENDED AVAILABILITY OF

17 FY2005 FUNDS.—Funds appropriated 

18 under clause (i) for fiscal year 2005 shall 

19 remain available to the Secretary through 

20 fiscal year 2006, for grants under this 

21 paragraph for fiscal year 2005.’’. 

22 (2) EFFECTIVE DATE.—The amendment made 

23 by paragraph (1) shall take effect on the date of the 

24 enactment of this Act. 
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1 (c) COUNTING OF SPENDING ON NON-ELIGIBLE

2 FAMILIES TO PREVENT AND REDUCE INCIDENCE OF

3 OUT-OF-WEDLOCK BIRTHS, ENCOURAGE FORMATION

4 AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED

5 FAMILIES, OR ENCOURAGE RESPONSIBLE FATHER6 HOOD.—Section 409(a)(7)(B)(i) (42 U.S.C. 

7 609(a)(7)(B)(i)) is amended by adding at the end the fol8 lowing: 

9 ‘‘(V) COUNTING OF SPENDING

10 ON NON-ELIGIBLE FAMILIES TO PRE11 VENT AND REDUCE INCIDENCE OF

12 OUT-OF-WEDLOCK BIRTHS, ENCOUR13 AGE FORMATION AND MAINTENANCE

14 OF HEALTHY, 2-PARENT MARRIED

15 FAMILIES, OR ENCOURAGE RESPON16 SIBLE FATHERHOOD.—The term 

17 ‘qualified State expenditures’ includes 

18 the total expenditures by the State 

19 during the fiscal year under all State 

20 programs for a purpose described in 

21 paragraph (3) or (4) of section 

22 401(a).’’. 
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1 SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION IN2 CREASES IN CERTAIN STATES. 

3 Section 403(a)(3) (42 U.S.C. 603(a)(3)) is amend4 ed—

5 (1) in subparagraph (E)—

6 (A) by striking ‘‘1998, 1999, 2000, and 

7 2001’’ and inserting ‘‘2006 through 2009’’; and 

8 (B) by striking ‘‘, in a total amount not to 

9 exceed $800,000,000’’; 

10 (2) in subparagraph (G), by striking ‘‘2001’’ 

11 and inserting ‘‘2009’’; and 

12 (3) by striking subparagraph (H) and inserting 

13 the following: 

14 ‘‘(H) FURTHER PRESERVATION OF GRANT

15 AMOUNTS.—A State that was a qualifying State 

16 under this paragraph for fiscal year 2004 or 

17 any prior fiscal year shall be entitled to receive 

18 from the Secretary for each of fiscal years 2006 

19 through 2009 a grant in an amount equal to 

20 the amount required to be paid to the State 

21 under this paragraph for the most recent fiscal 

22 year for which the State was a qualifying 

23 State.’’. 
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1 SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVE2 MENT. 

3 (a) IN GENERAL.—Section 403(a)(4) (42 U.S.C. 

4 603(a)(4)) is amended—

5 (1) in the paragraph heading, by striking 

6 ‘‘HIGH PERFORMANCE STATES’’ and inserting ‘‘EM7 PLOYMENT ACHIEVEMENT’’; and 

8 (2) by striking subparagraphs (A) through (F) 

9 and inserting the following: 

10 ‘‘(A) IN GENERAL.—The Secretary shall 

11 make a grant pursuant to this paragraph to 

12 each State for each bonus year for which the 

13 State is an employment achievement State. 

14 ‘‘(B) AMOUNT OF GRANT.—

15 ‘‘(i) IN GENERAL.—Subject to clause 

16 (ii) of this subparagraph, the Secretary 

17 shall determine the amount of the grant 

18 payable under this paragraph to an em19 ployment achievement State for a bonus 

20 year, which shall be based on the perform21 ance of the State as determined under sub22 paragraph (D)(i) for the fiscal year that 

23 immediately precedes the bonus year. 

24 ‘‘(ii) LIMITATION.—The amount pay25 able to a State under this paragraph for a 
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1 bonus year shall not exceed 5 percent of 

2 the State family assistance grant. 

3 ‘‘(C) FORMULA FOR MEASURING STATE

4 PERFORMANCE.—

5 ‘‘(i) IN GENERAL.—Subject to clause 

6 (ii), not later than October 1, 2006, the 

7 Secretary, in consultation with the States, 

8 shall develop a formula for measuring 

9 State performance in operating the State 

10 program funded under this part so as to 

11 achieve the goals of employment entry, job 

12 retention, and increased earnings from em13 ployment for families receiving assistance 

14 under the program, as measured on an ab15 solute basis and on the basis of improve16 ment in State performance. 

17 ‘‘(ii) SPECIAL RULE FOR BONUS YEAR

18 2006.—For the purposes of awarding a 

19 bonus under this paragraph for bonus year 

20 2006, the Secretary may measure the per21 formance of a State in fiscal year 2005 

22 using the job entry rate, job retention rate, 

23 and earnings gain rate components of the 

24 formula developed under section 
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1 403(a)(4)(C) as in effect immediately be2 fore the effective date of this paragraph. 

3 ‘‘(D) DETERMINATION OF STATE PER4 FORMANCE.—For each bonus year, the Sec5 retary shall—

6 ‘‘(i) use the formula developed under 

7 subparagraph (C) to determine the per8 formance of each eligible State for the fis9 cal year that precedes the bonus year; and 

10 ‘‘(ii) prescribe performance standards 

11 in such a manner so as to ensure that—

12 ‘‘(I) the average annual total 

13 amount of grants to be made under 

14 this paragraph for each bonus year 

15 equals $100,000,000; and 

16 ‘‘(II) the total amount of grants 

17 to be made under this paragraph for 

18 all bonus years equals $600,000,000. 

19 ‘‘(E) DEFINITIONS.—In this paragraph: 

20 ‘‘(i) BONUS YEAR.—The term ‘bonus 

21 year’ means each of fiscal years 2006 

22 through 2011. 

23 ‘‘(ii) EMPLOYMENT ACHIEVEMENT

24 STATE.—The term ‘employment achieve25 ment State’ means, with respect to a bonus 
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1 year, an eligible State whose performance 

2 determined pursuant to subparagraph 

3 (D)(i) for the fiscal year preceding the 

4 bonus year equals or exceeds the perform5 ance standards prescribed under subpara6 graph (D)(ii) for such preceding fiscal 

7 year. 

8 ‘‘(F) APPROPRIATION.—

9 ‘‘(i) IN GENERAL.—Out of any money 

10 in the Treasury of the United States not 

11 otherwise appropriated, there are appro12 priated for fiscal years 2006 through 2011 

13 $600,000,000 for grants under this para14 graph. 

15 ‘‘(ii) EXTENDED AVAILABILITY OF

16 PRIOR APPROPRIATION.—Amounts appro17 priated under section 403(a)(4)(F) of the 

18 Social Security Act (as in effect before the 

19 date of the enactment of this clause) that 

20 have not been expended as of such date of 

21 enactment shall remain available through 

22 fiscal year 2006 for grants under section 

23 403(a)(4) of such Act (as in effect before 

24 such date of enactment) for bonus year 

25 2005.[needed?] 
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1 ‘‘(G) GRANTS FOR TRIBAL ORGANIZA2 TIONS.—This paragraph shall apply with re3 spect to tribal organizations in the same man4 ner in which this paragraph applies with re5 spect to States. In determining the criteria 

6 under which to make grants to tribal organiza7 tions under this paragraph, the Secretary shall 

8 consult with tribal organizations.’’. 

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

10 subsection (a) shall take effect on the date of the enact11 ment of this Act. 

12 SEC. 106. CONTINGENCY FUND. 

13 (a) DEPOSITS INTO FUND.—Section 403(b)(2) (42 

14 U.S.C. 603(b)(2)) is amended—

15 (1) by striking ‘‘1997, 1998, 1999, 2000, 2001, 

16 2002, and 2003’’ and inserting ‘‘2006 through 

17 2010’’; and 

18 (2) by striking all that follows 

19 ‘‘$2,000,000,000’’ and inserting a period. 

20 (b) GRANTS.—Section 403(b)(3)(C)(ii) (42 U.S.C. 

21 603(b)(3)(C)(ii)) is amended by striking ‘‘fiscal years 

22 1997 through 2005’’ and inserting ‘‘fiscal years 2006 

23 through 2010’’. 

24 (c) DEFINITION OF NEEDY STATE.—Clauses (i) and 

25 (ii) of section 403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are 
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1 amended by inserting after ‘‘1996’’ the following: ‘‘, and 

2 the Food Stamp Act of 1977 as in effect during the cor3 responding 3-month period in the fiscal year preceding 

4 such most recently concluded 3-month period,’’. 

5 (d) ANNUAL RECONCILIATION: FEDERAL MATCHING

6 OF STATE EXPENDITURES ABOVE ‘‘MAINTENANCE OF

7 EFFORT’’ LEVEL.—Section 403(b)(6) (42 U.S.C. 

8 603(b)(6)) is amended—

9 (1) in subparagraph (A)(ii)—

10 (A) by adding ‘‘and’’ at the end of sub11 clause (I); 

12 (B) by striking ‘‘; and’’ at the end of sub13 clause (II) and inserting a period; and 

14 (C) by striking subclause (III); 

15 (2) in subparagraph (B)(i)(II), by striking all 

16 that follows ‘‘section 409(a)(7)(B)(iii))’’ and insert17 ing a period; 

18 (3) by amending subparagraph (B)(ii)(I) to 

19 read as follows: 

20 ‘‘(I) the qualified State expendi21 tures (as defined in section 

22 409(a)(7)(B)(i)) for the fiscal year; 

23 plus’’; and 

24 (4) by striking subparagraph (C). 
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1 (e) CONSIDERATION OF CERTAIN CHILD CARE EX2 PENDITURES IN DETERMINING STATE COMPLIANCE

3 WITH CONTINGENCY FUND MAINTENANCE OF EFFORT

4 REQUIREMENT.—Section 409(a)(10) (42 U.S.C. 

5 609(a)(10)) is amended—

6 (1) by striking ‘‘(other than the expenditures 

7 described in subclause (I)(bb) of that paragraph)) 

8 under the State program funded under this part’’ 

9 and inserting a close parenthesis; and 

10 (2) by striking ‘‘excluding any amount ex11 pended by the State for child care under subsection 

12 (g) or (i) of section 402 (as in effect during fiscal 

13 year 1994) for fiscal year 1994,’’. 

14 SEC. 107. USE OF FUNDS. 

15 (a) GENERAL RULES.—Section 404(a)(2) (42 U.S.C. 

16 604(a)(2)) is amended by striking ‘‘in any manner that’’ 

17 and inserting ‘‘for any purposes or activities for which’’. 

18 (b) TREATMENT OF INTERSTATE IMMIGRANTS.—

19 (1) STATE PLAN PROVISION.—Section 

20 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended 

21 by striking clause (i) and redesignating clauses (ii) 

22 through (iv) as clauses (i) through (iii), respectively. 

23 (2) USE OF FUNDS.—Section 404 (42 U.S.C. 

24 604) is amended by striking subsection (c). 
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1 (c) INCREASE IN AMOUNT TRANSFERABLE TO CHILD

2 CARE.—Section 404(d)(1) (42 U.S.C. 604(d)(1)) is 

3 amended by striking ‘‘30’’ and inserting ‘‘50’’. 

4 (d) INCREASE IN AMOUNT TRANSFERABLE TO TITLE

5 XX PROGRAMS.—Section 404(d)(2)(B) (42 U.S.C. 

6 604(d)(2)(B)) is amended to read as follows: 

7 ‘‘(B) APPLICABLE PERCENT.—For pur8 poses of subparagraph (A), the applicable per9 cent is 10 percent for fiscal year 2006 and each 

10 succeeding fiscal year.’’. 

11 (e) CLARIFICATION OF AUTHORITY OF STATES TO

12 USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS

13 TO PROVIDE TANF BENEFITS AND SERVICES.—Section 

14 404(e) (42 U.S.C. 604(e)) is amended to read as follows: 

15 ‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE CER16 TAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FU17 TURE CONTINGENCIES.—

18 ‘‘(1) CARRYOVER.—A State or tribe may use a 

19 grant made to the State or tribe under this part for 

20 any fiscal year to provide, without fiscal year limita21 tion, any benefit or service that may be provided 

22 under the State or tribal program funded under this 

23 part. 

24 ‘‘(2) CONTINGENCY RESERVE.—A State or tribe 

25 may designate any portion of a grant made to the 
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1 State or tribe under this part as a contingency re2 serve for future needs, and may use any amount so 

3 designated to provide, without fiscal year limitation, 

4 any benefit or service that may be provided under 

5 the State or tribal program funded under this part. 

6 If a State or tribe so designates a portion of such 

7 a grant, the State shall, on an annual basis, include 

8 in its report under section 411(a) the amount so 

9 designated.’’. 

10 SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE 

11 PROGRAMS. 

12 (a) REPEAL.—Section 406 (42 U.S.C. 606) is re13 pealed. 

14 (b) CONFORMING AMENDMENTS.—

15 (1) Section 409(a) (42 U.S.C. 609(a)) is 

16 amended by striking paragraph (6). 

17 (2) Section 412 (42 U.S.C. 612) is amended by 

18 striking subsection (f) and redesignating subsections 

19 (g) through (i) as subsections (f) through (h), re20 spectively. 

21 (3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) 

22 is amended by striking ‘‘406,’’. 
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1 SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF2 SUFFICIENCY PLAN REQUIREMENTS. 

3 (a) MODIFICATION OF STATE PLAN REQUIRE4 MENTS.—Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) 

5 is amended by striking clauses (ii) and (iii) and inserting 

6 the following: 

7 ‘‘(ii) Require a parent or caretaker re8 ceiving assistance under the program to 

9 engage in work or alternative self-suffi10 ciency activities (as defined by the State), 

11 consistent with section 407(e)(2). 

12 ‘‘(iii) Require families receiving assist13 ance under the program to engage in ac14 tivities in accordance with family self-suffi15 ciency plans developed pursuant to section 

16 408(b).’’. 

17 (b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY

18 PLANS.—

19 (1) IN GENERAL.—Section 408(b) (42 U.S.C. 

20 608(b)) is amended to read as follows: 

21 ‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.—

22 ‘‘(1) IN GENERAL.—A State to which a grant 

23 is made under section 403 shall—

24 ‘‘(A) assess, in the manner deemed appro25 priate by the State, the skills, prior work expe26 rience, and employability of each work-eligible 
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1 individual (as defined in section 407(b)(2)(C)) 

2 receiving assistance under the State program 

3 funded under this part; 

4 ‘‘(B) establish for each family that in5 cludes such an individual, in consultation as the 

6 State deems appropriate with the individual, a 

7 self-sufficiency plan that specifies appropriate 

8 activities described in the State plan submitted 

9 pursuant to section 402, including direct work 

10 activities as appropriate designed to assist the 

11 family in achieving their maximum degree of 

12 self-sufficiency, and that provides for the ongo13 ing participation of the individual in the activi14 ties; 

15 ‘‘(C) require, at a minimum, each such in16 dividual to participate in activities in accord17 ance with the self-sufficiency plan; 

18 ‘‘(D) monitor the participation of each 

19 such individual in the activities specified in the 

20 self sufficiency plan, and regularly review the 

21 progress of the family toward self-sufficiency; 

22 ‘‘(E) upon such a review, revise the self23 sufficiency plan and activities as the State 

24 deems appropriate. 
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1 ‘‘(2) TIMING.—The State shall comply with 

2 paragraph (1) with respect to a family—

3 ‘‘(A) in the case of a family that, as of Oc4 tober 1, 2005, is not receiving assistance from 

5 the State program funded under this part, not 

6 later than 60 days after the family first receives 

7 assistance on the basis of the most recent appli8 cation for the assistance; or 

9 ‘‘(B) in the case of a family that, as of 

10 such date, is receiving the assistance, not later 

11 than 12 months after the date of enactment of 

12 this subsection. 

13 ‘‘(3) STATE DISCRETION.—A State shall have 

14 sole discretion, consistent with section 407, to define 

15 and design activities for families for purposes of this 

16 subsection, to develop methods for monitoring and 

17 reviewing progress pursuant to this subsection, and 

18 to make modifications to the plan as the State 

19 deems appropriate to assist the individual in increas20 ing their degree of self-sufficiency. 

21 ‘‘(4) RULE OF INTERPRETATION.—Nothing in 

22 this part shall preclude a State from requiring par23 ticipation in work and any other activities the State 

24 deems appropriate for helping families achieve self25 sufficiency and improving child well-being.’’. 
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1 (2) PENALTY FOR FAILURE TO ESTABLISH

2 FAMILY SELF-SUFFICIENCY PLAN.—Section 

3 409(a)(3) (42 U.S.C. 609(a)(3)) is amended—

4 (A) in the paragraph heading, by inserting 

5 ‘‘or establish family self-sufficiency plan’’ after 

6 ‘‘rates’’; and 

7 (B) in subparagraph (A), by inserting ‘‘or 

8 408(b)’’ after ‘‘407(a)’’. 

9 SEC. 110. WORK PARTICIPATION REQUIREMENTS. 

10 (a) ELIMINATION OF SEPARATE PARTICIPATION

11 RATE REQUIREMENTS FOR 2-PARENT FAMILIES.—

12 (1) Section 407 (42 U.S.C. 607) is amended in 

13 each of subsections (a) and (b) by striking para14 graph (2). 

15 (2) Section 407(b)(4) (42 U.S.C. 607(b)(4)) is 

16 amended by striking ‘‘paragraphs (1)(B) and 

17 (2)(B)’’ and inserting ‘‘paragraph (1)(B)’’. 

18 (3) Section 407(c)(1) (42 U.S.C. 607(c)(1)) is 

19 amended by striking subparagraph (B). 

20 (4) Section 407(c)(2)(D) (42 U.S.C. 

21 607(c)(2)(D)) is amended by striking ‘‘paragraphs 

22 (1)(B)(i) and (2)(B) of subsection (b)’’ and inserting 

23 ‘‘subsection (b)(1)(B)(i)’’. 
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1 (b) WORK PARTICIPATION REQUIREMENTS.—Section 

2 407 (42 U.S.C. 607) is amended by striking all that pre3 cedes subsection (b)(3) and inserting the following: 

4 ‘‘SEC. 407. WORK PARTICIPATION REQUIREMENTS. 

5 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—A 

6 State to which a grant is made under section 403 for a 

7 fiscal year shall achieve a minimum participation rate 

8 equal to not less than—

9 ‘‘(1) 50 percent for fiscal year 2006; 

10 ‘‘(2) 55 percent for fiscal year 2007; 

11 ‘‘(3) 60 percent for fiscal year 2008; 

12 ‘‘(4) 65 percent for fiscal year 2009; and 

13 ‘‘(5) 70 percent for fiscal year 2010 and each 

14 succeeding fiscal year. 

15 ‘‘(b) CALCULATION OF PARTICIPATION RATES.—

16 ‘‘(1) AVERAGE MONTHLY RATE.—For purposes 

17 of subsection (a), the participation rate of a State 

18 for a fiscal year is the average of the participation 

19 rates of the State for each month in the fiscal year. 

20 ‘‘(2) MONTHLY PARTICIPATION RATES; INCOR21 PORATION OF 40-HOUR WORK WEEK STANDARD.—

22 ‘‘(A) IN GENERAL.—For purposes of para23 graph (1), the participation rate of a State for 

24 a month is—
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1 ‘‘(i) the total number of countable 

2 hours (as defined in subsection (c)) with 

3 respect to the counted families for the 

4 State for the month; divided by 

5 ‘‘(ii) 160 multiplied by the number of 

6 counted families for the State for the 

7 month. 

8 ‘‘(B) COUNTED FAMILIES DEFINED.—

9 ‘‘(i) IN GENERAL.—In subparagraph 

10 (A), the term ‘counted family’ means, with 

11 respect to a State and a month, a family 

12 that includes a work-eligible individual and 

13 that receives assistance in the month under 

14 the State program funded under this part, 

15 subject to clause (ii). 

16 ‘‘(ii) STATE OPTION TO EXCLUDE

17 CERTAIN FAMILIES.—At the option of a 

18 State, the term ‘counted family’ shall not 

19 include—

20 ‘‘(I) a family in the first month 

21 for which the family receives assist22 ance from a State program funded 

23 under this part on the basis of the 

24 most recent application for such as25 sistance; or 
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1 ‘‘(II) on a case-by-case basis, a 

2 family in which the youngest child has 

3 not attained 12 months of age. 

4 ‘‘(iii) STATE OPTION TO INCLUDE IN5 DIVIDUALS RECEIVING ASSISTANCE UNDER

6 A TRIBAL FAMILY ASSISTANCE PLAN OR

7 TRIBAL WORK PROGRAM.—At the option of 

8 a State, the term ‘counted family’ may in9 clude families in the State that are receiv10 ing assistance under a tribal family assist11 ance plan approved under section 412 or 

12 under a tribal work program to which 

13 funds are provided under this part. 

14 ‘‘(C) WORK-ELIGIBLE INDIVIDUAL DE15 FINED.—In this section, the term ‘work-eligible 

16 individual’ means an individual—

17 ‘‘(i) who is married or a single head 

18 of household; and 

19 ‘‘(ii) whose needs are (or, but for 

20 sanctions under this part that have been in 

21 effect for more than 3 months (whether or 

22 not consecutive) in the preceding 12 

23 months or under part D, would be) in24 cluded in determining the amount of cash 

25 assistance to be provided to the family 
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1 under the State program funded under this 

2 part.’’. 

3 (c) RECALIBRATION OF CASELOAD REDUCTION

4 CREDIT.—

5 (1) IN GENERAL.—Section 407(b)(3)(A)(ii) (42 

6 U.S.C. 607(b)(3)(A)(ii)) is amended to read as fol7 lows: 

8 ‘‘(ii) the average monthly number of 

9 families that received assistance under the 

10 State program funded under this part dur11 ing the base year.’’. 

12 (2) CONFORMING AMENDMENT.—Section 

13 407(b)(3)(B) (42 U.S.C. 607(b)(3)(B)) is amended 

14 by striking ‘‘and eligibility criteria’’ and all that fol15 lows through the close parenthesis and inserting 

16 ‘‘and the eligibility criteria in effect during the then 

17 applicable base year’’. 

18 (3) BASE YEAR DEFINED.—Section 407(b)(3) 

19 (42 U.S.C. 607(b)(3)) is amended by adding at the 

20 end the following: 

21 ‘‘(C) BASE YEAR DEFINED.—In this para22 graph, the term ‘base year’ means, with respect 

23 to a fiscal year—

24 ‘‘(i) if the fiscal year is fiscal year 

25 2006, fiscal year 1996; 
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1 ‘‘(ii) if the fiscal year is fiscal year 

2 2007, fiscal year 1998; 

3 ‘‘(iii) if the fiscal year is fiscal year 

4 2008, fiscal year 2001; or 

5 ‘‘(iv) if the fiscal year is fiscal year 

6 2009 or any succeeding fiscal year, the 

7 then 4th preceding fiscal year.’’. 

8 (d) SUPERACHIEVER CREDIT.—Section 407(b) (42 

9 U.S.C. 607(b)) is amended by striking paragraphs (4) and 

10 (5) and inserting the following: 

11 ‘‘(4) SUPERACHIEVER CREDIT.—

12 ‘‘(A) IN GENERAL.—The participation 

13 rate, determined under paragraphs (1) and (2) 

14 of this subsection, of a superachiever State for 

15 a fiscal year shall be increased by the lesser 

16 of—

17 ‘‘(i) the amount (if any) of the super18 achiever credit applicable to the State; or 

19 ‘‘(ii) the number of percentage points 

20 (if any) by which the minimum participa21 tion rate required by subsection (a) for the 

22 fiscal year exceeds 50 percent. 

23 ‘‘(B) SUPERACHIEVER STATE.—For pur24 poses of subparagraph (A), a State is a super25 achiever State if the State caseload for fiscal 
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1 year 2001 has declined by at least 60 percent 

2 from the State caseload for fiscal year 1995. 

3 ‘‘(C) AMOUNT OF CREDIT.—The super4 achiever credit applicable to a State is the num5 ber of percentage points (if any) by which the 

6 decline referred to in subparagraph (B) exceeds 

7 60 percent. 

8 ‘‘(D) DEFINITIONS.—In this paragraph: 

9 ‘‘(i) STATE CASELOAD FOR FISCAL

10 YEAR 2001.—The term ‘State caseload for 

11 fiscal year 2001’ means the average 

12 monthly number of families that received 

13 assistance during fiscal year 2001 under 

14 the State program funded under this part. 

15 ‘‘(ii) STATE CASELOAD FOR FISCAL

16 YEAR 1995.—The term ‘State caseload for 

17 fiscal year 1995’ means the average 

18 monthly number of families that received 

19 aid under the State plan approved under 

20 part A (as in effect on September 30, 

21 1995) during fiscal year 1995.’’. 

22 (e) COUNTABLE HOURS.—Section 407 of such Act 

23 (42 U.S.C. 607) is amended by striking subsections (c) 

24 and (d) and inserting the following: 

25 ‘‘(c) COUNTABLE HOURS.—
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1 ‘‘(1) DEFINITION.—In subsection (b)(2), the 

2 term ‘countable hours’ means, with respect to a fam3 ily for a month, the total number of hours in the 

4 month in which any member of the family who is a 

5 work-eligible individual is engaged in a direct work 

6 activity or other activities specified by the State (ex7 cluding an activity that does not address a purpose 

8 specified in section 401(a)), subject to the other pro9 visions of this subsection. 

10 ‘‘(2) LIMITATIONS.—Subject to such regula11 tions as the Secretary may prescribe: 

12 ‘‘(A) MINIMUM WEEKLY AVERAGE OF 24

13 HOURS OF DIRECT WORK ACTIVITIES RE14 QUIRED.—If the work-eligible individuals in a 

15 family are engaged in a direct work activity for 

16 an average total of fewer than 24 hours per 

17 week in a month, then the number of countable 

18 hours with respect to the family for the month 

19 shall be zero. 

20 ‘‘(B) MAXIMUM WEEKLY AVERAGE OF 16

21 HOURS OF OTHER ACTIVITIES.—An average of 

22 not more than 16 hours per week of activities 

23 specified by the State (subject to the exclusion 

24 described in paragraph (1)) may be considered 
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1 countable hours in a month with respect to a 

2 family. 

3 ‘‘(3) SPECIAL RULES.—For purposes of para4 graph (1): 

5 ‘‘(A) PARTICIPATION IN QUALIFIED AC6 TIVITIES.—

7 ‘‘(i) IN GENERAL.—If, with the ap8 proval of the State, the work-eligible indi9 viduals in a family are engaged in 1 or 

10 more qualified activities for an average 

11 total of at least 24 hours per week in a 

12 month, then all such engagement in the 

13 month shall be considered engagement in a 

14 direct work activity, subject to clause (iii). 

15 ‘‘(ii) QUALIFIED ACTIVITY DE16 FINED.—The term ‘qualified activity’ 

17 means an activity specified by the State 

18 (subject to the exclusion described in para19 graph (1)) that meets such standards and 

20 criteria as the State may specify, includ21 ing—

22 ‘‘(I) substance abuse counseling 

23 or treatment; 

24 ‘‘(II) rehabilitation treatment 

25 and services; 
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1 ‘‘(III) work-related education or 

2 training directed at enabling the fam3 ily member to work; 

4 ‘‘(IV) job search or job readiness 

5 assistance; and 

6 ‘‘(V) any other activity that ad7 dresses a purpose specified in section 

8 401(a). 

9 ‘‘(iii) LIMITATION.—

10 ‘‘(I) IN GENERAL.—Except as 

11 provided in subclause (II), clause (i) 

12 shall not apply to a family for more 

13 than 3 months in any period of 24 

14 consecutive months. 

15 ‘‘(II) SPECIAL RULE APPLICABLE

16 TO EDUCATION AND TRAINING.—A 

17 State may, on a case-by-case basis, 

18 apply clause (i) to a work-eligible indi19 vidual so that participation by the in20 dividual in education or training, if 

21 needed to permit the individual to 

22 complete a certificate program or 

23 other work-related education or train24 ing directed at enabling the individual 

25 to fill a known job need in a local 
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1 area, may be considered countable 

2 hours with respect to the family of the 

3 individual for not more than 4 months 

4 in any period of 24 consecutive 

5 months. 

6 ‘‘(B) SCHOOL ATTENDANCE BY TEEN

7 HEAD OF HOUSEHOLD.—The work-eligible 

8 members of a family shall be considered to be 

9 engaged in a direct work activity for an average 

10 of 40 hours per week in a month if the family 

11 includes an individual who is married, or is a 

12 single head of household, who has not attained 

13 20 years of age, and the individual—

14 ‘‘(i) maintains satisfactory attendance 

15 at secondary school or the equivalent in 

16 the month; or 

17 ‘‘(ii) participates in education directly 

18 related to employment for an average of at 

19 least 20 hours per week in the month. 

20 ‘‘(d) DIRECT WORK ACTIVITY.—In this section, the 

21 term ‘direct work activity’ means—

22 ‘‘(1) unsubsidized employment; 

23 ‘‘(2) subsidized private sector employment; 

24 ‘‘(3) subsidized public sector employment; 

25 ‘‘(4) on-the-job training; 
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1 ‘‘(5) supervised work experience; or 

2 ‘‘(6) supervised community service.’’. 

3 (f) PENALTIES AGAINST INDIVIDUALS.—Section 

4 407(e)(1) (42 U.S.C. 607(e)(1)) is amended to read as 

5 follows: 

6 ‘‘(1) REDUCTION OR TERMINATION OF ASSIST7 ANCE.—

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

9 paragraph (2), if an individual in a family re10 ceiving assistance under a State program fund11 ed under this part fails to engage in activities 

12 required in accordance with this section, or 

13 other activities required by the State under the 

14 program, and the family does not otherwise en15 gage in activities in accordance with the self16 sufficiency plan established for the family pur17 suant to section 408(b), the State shall—

18 ‘‘(i) if the failure is partial or persists 

19 for not more than 1 month—

20 ‘‘(I) reduce the amount of assist21 ance otherwise payable to the family 

22 pro rata (or more, at the option of the 

23 State) with respect to any period dur24 ing a month in which the failure oc25 curs; or 
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1 ‘‘(II) terminate all assistance to 

2 the family, subject to such good cause 

3 exceptions as the State may establish; 

4 or 

5 ‘‘(ii) if the failure is total and persists 

6 for at least 2 consecutive months, termi7 nate all cash payments to the family in8 cluding qualified State expenditures (as de9 fined in section 409(a)(7)(B)(i)) for at 

10 least 1 month and thereafter until the 

11 State determines that the individual has 

12 resumed full participation in the activities, 

13 subject to such good cause exceptions as 

14 the State may establish. 

15 ‘‘(B) SPECIAL RULE.—

16 ‘‘(i) IN GENERAL.—In the event of a 

17 conflict between a requirement of clause 

18 (i)(II) or (ii) of subparagraph (A) and a 

19 requirement of a State constitution, or of 

20 a State statute that, before 1966, obligated 

21 local government to provide assistance to 

22 needy parents and children, the State con23 stitutional or statutory requirement shall 

24 control. 
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1 ‘‘(ii) LIMITATION.—Clause (i) of this 

2 subparagraph shall not apply after the 1-

3 year period that begins with the date of 

4 the enactment of this subparagraph.’’. 

5 (g) CONFORMING AMENDMENTS.—

6 (1) Section 407(f) (42 U.S.C. 607(f)) is amend7 ed in each of paragraphs (1) and (2) by striking 

8 ‘‘work activity described in subsection (d)’’ and in9 serting ‘‘direct work activity’’. 

10 (2) The heading of section 409(a)(14) (42 

11 U.S.C. 609(a)(14)) is amended by inserting ‘‘or re12 fusing to engage in activities under a family self-suf13 ficiency plan’’ after ‘‘work’’. 

14 SEC. 111. MAINTENANCE OF EFFORT. 

15 (a) IN GENERAL.—Section 409(a)(7) (42 U.S.C. 

16 609(a)(7)) is amended—

17 (1) in subparagraph (A), by striking ‘‘fiscal 

18 year 1998, 1999, 2000, 2001, 2002, 2003, 2004, 

19 2005, or 2006’’ and inserting ‘‘fiscal year 2006, 

20 2007, 2008, 2009, 2010, or 2011’’; and 

21 (2) in subparagraph (B)(ii)—

22 (A) by inserting ‘‘preceding’’ before ‘‘fiscal 

23 year’’; and 

24 (B) by striking ‘‘for fiscal years 1997 

25 through 2005,’’. 
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1 (b) STATE SPENDING ON PROMOTING HEALTHY

2 MARRIAGE.—

3 (1) IN GENERAL.—Section 404 (42 U.S.C. 604) 

4 is amended by adding at the end the following: 

5 ‘‘(l) MARRIAGE PROMOTION.—A State, territory, or 

6 tribal organization to which a grant is made under section 

7 403(a)(2) may use a grant made to the State, territory, 

8 or tribal organization under any other provision of section 

9 403 for marriage promotion activities, and the amount of 

10 any such grant so used shall be considered State funds 

11 for purposes of section 403(a)(2).’’. 

12 (2) FEDERAL TANF FUNDS USED FOR MAR13 RIAGE PROMOTION DISREGARDED FOR PURPOSES OF

14 MAINTENANCE OF EFFORT REQUIREMENT.—Section 

15 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)), as 

16 amended by section 103(c) of this Act, is amended 

17 by adding at the end the following: 

18 ‘‘(VI) EXCLUSION OF FEDERAL

19 TANF FUNDS USED FOR MARRIAGE

20 PROMOTION ACTIVITIES.—Such term 

21 does not include the amount of any 

22 grant made to the State under section 

23 403 that is expended for a marriage 

24 promotion activity.’’. 
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1 SEC. 112. PERFORMANCE IMPROVEMENT. 

2 (a) STATE PLANS.—Section 402(a) (42 U.S.C. 

3 602(a)) is amended—

4 (1) in paragraph (1)—

5 (A) in subparagraph (A)—

6 (i) by redesignating clause (vi) and 

7 clause (vii) (as added by section 103(a) of 

8 this Act) as clauses (vii) and (viii), respec9 tively; and 

10 (ii) by striking clause (v) and insert11 ing the following: 

12 ‘‘(v) The document shall—

13 ‘‘(I) describe how the State will 

14 pursue ending dependence of needy 

15 families on government benefits and 

16 reducing poverty by promoting job 

17 preparation and work; 

18 ‘‘(II) describe how the State will 

19 encourage the formation and mainte20 nance of healthy 2-parent married 

21 families, encourage responsible father22 hood, and prevent and reduce the inci23 dence of out-of-wedlock pregnancies; 

24 ‘‘(III) include specific, numerical, 

25 and measurable performance objec26 tives for accomplishing subclauses (I) 
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1 and (II), and with respect to sub2 clause (I), include objectives con3 sistent with the criteria used by the 

4 Secretary in establishing performance 

5 targets under section 403(a)(4)(B) if 

6 available; and 

7 ‘‘(IV) describe the methodology 

8 that the State will use to measure 

9 State performance in relation to each 

10 such objective. 

11 ‘‘(vi) Describe any strategies and pro12 grams the State may be undertaking to ad13 dress—

14 ‘‘(I) employment retention and 

15 advancement for recipients of assist16 ance under the program, including 

17 placement into high-demand jobs, and 

18 whether the jobs are identified using 

19 labor market information; 

20 ‘‘(II) efforts to reduce teen preg21 nancy; 

22 ‘‘(III) services for struggling and 

23 noncompliant families, and for clients 

24 with special problems; and 
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1 ‘‘(IV) program integration, in2 cluding the extent to which employ3 ment and training services under the 

4 program are provided through the 

5 One-Stop delivery system created 

6 under the Workforce Investment Act 

7 of 1998, and the extent to which 

8 former recipients of such assistance 

9 have access to additional core, inten10 sive, or training services funded 

11 through such Act.’’; and 

12 (B) in subparagraph (B), by striking 

13 clause (iii) (as so redesignated by section 

14 107(b)(1) of this Act) and inserting the fol15 lowing: 

16 ‘‘(iii) The document shall describe 

17 strategies and programs the State is un18 dertaking to engage religious organizations 

19 in the provision of services funded under 

20 this part and efforts related to section 104 

21 of the Personal Responsibility and Work 

22 Opportunity Reconciliation Act of 1996. 

23 ‘‘(iv) The document shall describe 

24 strategies to improve program manage25 ment and performance.’’; and 
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1 (2) in paragraph (4), by inserting ‘‘and tribal’’ 

2 after ‘‘that local’’. 

3 (b) CONSULTATION WITH STATE REGARDING PLAN

4 AND DESIGN OF TRIBAL PROGRAMS.—Section 412(b)(1) 

5 (42 U.S.C. 612(b)(1)) is amended—

6 (1) by striking ‘‘and’’ at the end of subpara7 graph (E); 

8 (2) by striking the period at the end of sub9 paragraph (F) and inserting ‘‘; and’’; and 

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

11 ‘‘(G) provides an assurance that the State 

12 in which the tribe is located has been consulted 

13 regarding the plan and its design.’’. 

14 (c) PERFORMANCE MEASURES.—Section 413 (42 

15 U.S.C. 613) is amended by adding at the end the fol16 lowing: 

17 ‘‘(k) PERFORMANCE IMPROVEMENT.—The Secretary, 

18 in consultation with the States, shall develop uniform per19 formance measures designed to assess the degree of effec20 tiveness, and the degree of improvement, of State pro21 grams funded under this part in accomplishing the pur22 poses of this part.’’. 

23 (d) ANNUAL RANKING OF STATES.—Section 

24 413(d)(1) (42 U.S.C. 613(d)(1)) is amended by striking 

25 ‘‘long-term private sector jobs’’ and inserting ‘‘private sec-
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1 tor jobs, the success of the recipients in retaining employ2 ment, the ability of the recipients to increase their wages’’. 

3 SEC. 113. DATA COLLECTION AND REPORTING. 

4 (a) CONTENTS OF REPORT.—Section 411(a)(1)(A) 

5 (42 U.S.C. 611(a)(1)(A)) is amended—

6 (1) in the matter preceding clause (i), by insert7 ing ‘‘and on families receiving assistance under 

8 State programs funded with other qualified State ex9 penditures (as defined in section 409(a)(7)(B))’’ be10 fore the colon; 

11 (2) in clause (vii), by inserting ‘‘and minor par12 ent’’ after ‘‘of each adult’’; 

13 (3) in clause (viii), by striking ‘‘and educational 

14 level’’; 

15 (4) in clause (ix), by striking ‘‘, and if the lat16 ter 2, the amount received’’; 

17 (5) in clause (x)—

18 (A) by striking ‘‘each type of’’; and 

19 (B) by inserting before the period ‘‘and, if 

20 applicable, the reason for receipt of the assist21 ance for a total of more than 60 months’’; 

22 (6) in clause (xi), by striking the subclauses 

23 and inserting the following: 

24 ‘‘(I) Subsidized private sector 

25 employment. 
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1 ‘‘(II) Unsubsidized employment. 

2 ‘‘(III) Public sector employment, 

3 supervised work experience, or super4 vised community service. 

5 ‘‘(IV) On-the-job training. 

6 ‘‘(V) Job search and placement. 

7 ‘‘(VI) Training. 

8 ‘‘(VII) Education. 

9 ‘‘(VIII) Other activities directed 

10 at the purposes of this part, as speci11 fied in the State plan submitted pur12 suant to section 402.’’; 

13 (7) in clause (xii), by inserting ‘‘and progress 

14 toward universal engagement’’ after ‘‘participation 

15 rates’’; 

16 (8) in clause (xiii), by striking ‘‘type and’’ be17 fore ‘‘amount of assistance’’; 

18 (9) in clause (xvi), by striking subclause (II) 

19 and redesignating subclauses (III) through (V) as 

20 subclauses (II) through (IV), respectively; and 

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

22 ‘‘(xviii) The date the family first re23 ceived assistance from the State program 

24 on the basis of the most recent application 

25 for such assistance. 
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1 ‘‘(xix) Whether a self-sufficiency plan 

2 is established for the family in accordance 

3 with section 408(b). 

4 ‘‘(xx) With respect to any child in the 

5 family, the marital status of the parents at 

6 the birth of the child, and if the parents 

7 were not then married, whether the pater8 nity of the child has been established.’’. 

9 (b) USE OF SAMPLES.—Section 411(a)(1)(B) (42 

10 U.S.C. 611(a)(1)(B)) is amended—

11 (1) in clause (i)—

12 (A) by striking ‘‘a sample’’ and inserting 

13 ‘‘samples’’; and 

14 (B) by inserting before the period ‘‘, except 

15 that the Secretary may designate core data ele16 ments that must be reported on all families’’; 

17 and 

18 (2) in clause (ii), by striking ‘‘funded under this 

19 part’’ and inserting ‘‘described in subparagraph 

20 (A)’’. 

21 (c) REPORT ON FAMILIES THAT BECOME INELI22 GIBLE TO RECEIVE ASSISTANCE.—Section 411(a) (42 

23 U.S.C. 611(a)) is amended—

24 (1) by striking paragraph (5); 
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1 (2) by redesignating paragraph (6) as para2 graph (5); and 

3 (3) by inserting after paragraph (5) (as so re4 designated) the following: 

5 ‘‘(6) REPORT ON FAMILIES THAT BECOME IN6 ELIGIBLE TO RECEIVE ASSISTANCE.—The report re7 quired by paragraph (1) for a fiscal quarter shall in8 clude for each month in the quarter the number of 

9 families and total number of individuals that, during 

10 the month, became ineligible to receive assistance 

11 under the State program funded under this part 

12 (broken down by the number of families that become 

13 so ineligible due to earnings, changes in family com14 position that result in increased earnings, sanctions, 

15 time limits, or other specified reasons).’’. 

16 (d) REGULATIONS.—Section 411(a)(7) (42 U.S.C. 

17 611(a)(7)) is amended—

18 (1) by inserting ‘‘and to collect the necessary 

19 data’’ before ‘‘with respect to which reports’’; 

20 (2) by striking ‘‘subsection’’ and inserting ‘‘sec21 tion’’; and 

22 (3) by striking ‘‘in defining the data elements’’ 

23 and all that follows and inserting ‘‘, the National 

24 Governors’ Association, the American Public Human 

25 Services Association, the National Conference of 
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1 State Legislatures, and others in defining the data 

2 elements.’’. 

3 (e) ADDITIONAL REPORTS BY STATES.—Section 411 

4 (42 U.S.C. 611) is amended—

5 (1) by redesignating subsection (b) as sub6 section (e); and 

7 (2) by inserting after subsection (a) the fol8 lowing: 

9 ‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERIS10 TICS.—Not later than 90 days after the end of fiscal year 

11 2006 and each succeeding fiscal year, each eligible State 

12 shall submit to the Secretary a report on the characteris13 tics of the State program funded under this part and other 

14 State programs funded with qualified State expenditures 

15 (as defined in section 409(a)(7)(B)(i)). The report shall 

16 include, with respect to each such program, the program 

17 name, a description of program activities, the program 

18 purpose, the program eligibility criteria, the sources of 

19 program funding, the number of program beneficiaries, 

20 sanction policies, and any program work requirements. 

21 ‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not later 

22 than 3 months after the end of a calendar month that 

23 begins 1 year or more after the enactment of this sub24 section, each eligible State shall submit to the Secretary 

25 a report on the number of families and total number of 
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1 individuals receiving assistance in the calendar month 

2 under the State program funded under this part. 

3 ‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVE4 MENT.—Beginning with fiscal year 2007, not later than 

5 January 1 of each fiscal year, each eligible State shall sub6 mit to the Secretary a report on achievement and improve7 ment during the preceding fiscal year under the numerical 

8 performance goals and measures under the State program 

9 funded under this part with respect to each of the matters 

10 described in section 402(a)(1)(A)(v).’’. 

11 (f) ANNUAL REPORTS TO CONGRESS BY THE SEC12 RETARY.—Section 411(e), as so redesignated by sub13 section (e) of this section, is amended—

14 (1) in the matter preceding paragraph (1), by 

15 striking ‘‘and each fiscal year thereafter’’ and insert16 ing ‘‘and by July 1 of each fiscal year thereafter’’; 

17 (2) in paragraph (2), by striking ‘‘families ap18 plying for assistance,’’ and by striking the last 

19 comma; and 

20 (3) in paragraph (3), by inserting ‘‘and other 

21 programs funded with qualified State expenditures 

22 (as defined in section 409(a)(7)(B)(i))’’ before the 

23 semicolon. 
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1 (g) INCREASED ANALYSIS OF STATE SINGLE AUDIT

2 REPORTS.—Section 411 (42 U.S.C. 611) is amended by 

3 adding at the end the following: 

4 ‘‘(f) INCREASED ANALYSIS OF STATE SINGLE AUDIT

5 REPORTS.—

6 ‘‘(1) IN GENERAL.—Within 3 months after a 

7 State submits to the Secretary a report pursuant to 

8 section 7502(a)(1)(A) of title 31, United States 

9 Code, the Secretary shall analyze the report for the 

10 purpose of identifying the extent and nature of prob11 lems related to the oversight by the State of non12 governmental entities with respect to contracts en13 tered into by such entities with the State program 

14 funded under this part, and determining what addi15 tional actions may be appropriate to help prevent 

16 and correct the problems. 

17 ‘‘(2) INCLUSION OF PROGRAM OVERSIGHT SEC18 TION IN ANNUAL REPORT TO THE CONGRESS.—The 

19 Secretary shall include in each report under sub20 section (e) a section on oversight of State programs 

21 funded under this part, including findings on the ex22 tent and nature of the problems referred to in para23 graph (1), actions taken to resolve the problems, and 

24 to the extent the Secretary deems appropriate make 
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1 recommendations on changes needed to resolve the 

2 problems.’’. 

3 SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY IN4 DIAN TRIBES. 

5 (a) TRIBAL FAMILY ASSISTANCE GRANT.—Section 

6 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by 

7 striking ‘‘1997, 1998, 1999, 2000, 2001, 2002, and 2003’’ 

8 and inserting ‘‘2006 through 2010’’. 

9 (b) GRANTS FOR INDIAN TRIBES THAT RECEIVED

10 JOBS FUNDS.—Section 412(a)(2)(A) (42 U.S.C. 

11 612(a)(2)(A)) is amended by striking ‘‘1997, 1998, 1999, 

12 2000, 2001, 2002, and 2003’’ and inserting ‘‘2006 

13 through 2010’’. 

14 SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUD15 IES. 

16 (a) SECRETARY’S FUND FOR RESEARCH, DEM17 ONSTRATIONS, AND TECHNICAL ASSISTANCE.—

18 (1) IN GENERAL.—Section 413 (42 U.S.C. 

19 613), as amended by section 112(c) of this Act, is 

20 further amended by adding at the end the following: 

21 ‘‘(l) FUNDING FOR RESEARCH, DEMONSTRATIONS, 

22 AND TECHNICAL ASSISTANCE.—

23 ‘‘(1) APPROPRIATION.—

24 ‘‘(A) IN GENERAL.—Out of any money in 

25 the Treasury of the United States not otherwise 
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1 appropriated, there are appropriated 

2 $102,000,000 for each of fiscal years 2005 

3 through 2010, which shall be available to the 

4 Secretary for the purpose of conducting and 

5 supporting research and demonstration projects 

6 by public or private entities, and providing tech7 nical assistance to States, Indian tribal organi8 zations, and such other entities as the Secretary 

9 may specify that are receiving a grant under 

10 this part, which shall be expended primarily on 

11 activities described in section 403(a)(2)(B), and 

12 which shall be in addition to any other funds 

13 made available under this part. 

14 ‘‘(B) EXTENDED AVAILABILITY OF FY 2005

15 FUNDS.—Funds appropriated under this para16 graph for fiscal year 2005 shall remain avail17 able to the Secretary through fiscal year 2006, 

18 for use in accordance with this paragraph for 

19 fiscal year 2005. 

20 ‘‘(2) SET ASIDE FOR DEMONSTRATION

21 PROJECTS FOR COORDINATION OF PROVISION OF

22 CHILD WELFARE AND TANF SERVICES TO TRIBAL

23 FAMILIES AT RISK OF CHILD ABUSE OR NEGLECT.—

24 ‘‘(A) IN GENERAL.—Of the amounts made 

25 available under paragraph (1) for a fiscal year, 
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1 $2,000,000 shall be awarded on a competitive 

2 basis to fund demonstration projects designed 

3 to test the effectiveness of tribal governments 

4 or tribal consortia in coordinating the provision 

5 to tribal families at risk of child abuse or ne6 glect of child welfare services and services 

7 under tribal programs funded under this part. 

8 ‘‘(B) USE OF FUNDS.—A grant made to 

9 such a project shall be used—

10 ‘‘(i) to improve case management for 

11 families eligible for assistance from such a 

12 tribal program; 

13 ‘‘(ii) for supportive services and as14 sistance to tribal children in out-of-home 

15 placements and the tribal families caring 

16 for such children, including families who 

17 adopt such children; and 

18 ‘‘(iii) for prevention services and as19 sistance to tribal families at risk of child 

20 abuse and neglect. 

21 ‘‘(C) REPORTS.—The Secretary may re22 quire a recipient of funds awarded under this 

23 paragraph to provide the Secretary with such 

24 information as the Secretary deems relevant to 

25 enable the Secretary to facilitate and oversee 
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1 the administration of any project for which 

2 funds are provided under this paragraph.’’. 

3 (2) EFFECTIVE DATE.—The amendment made 

4 by paragraph (1) shall take effect on the date of the 

5 enactment of this Act. 

6 (b) FUNDING OF STUDIES AND DEMONSTRATIONS.—

7 Section 413(h)(1) (42 U.S.C. 613(h)(1)) is amended in 

8 the matter preceding subparagraph (A) by striking ‘‘1997 

9 through 2002’’ and inserting ‘‘2006 through 2010’’. 

10 (c) REPORT ON ENFORCEMENT OF CERTAIN AFFIDA11 VITS OF SUPPORT AND SPONSOR DEEMING.—Not later 

12 than March 31, 2006, the Secretary of Health and Human 

13 Services, in consultation with the Attorney General, shall 

14 submit to the Congress a report on the enforcement of 

15 affidavits of support and sponsor deeming as required by 

16 section 421, 422, and 432 of the Personal Responsibility 

17 and Work Opportunity Reconciliation Act of 1996. 

18 (d) REPORT ON COORDINATION.—Not later than 6 

19 months after the date of the enactment of this Act, the 

20 Secretary of Health and Human Services and the Sec21 retary of Labor shall jointly submit a report to the Con22 gress describing common or conflicting data elements, 

23 definitions, performance measures, and reporting require24 ments in the Workforce Investment Act of 1998 and part 

25 A of title IV of the Social Security Act, and, to the degree 
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1 each Secretary deems appropriate, at the discretion of ei2 ther Secretary, any other program administered by the re3 spective Secretary, to allow greater coordination between 

4 the welfare and workforce development systems. 

5 SEC. 116. STUDIES BY THE CENSUS BUREAU AND THE GOV6 ERNMENT ACCOUNTABILITY OFFICE. 

7 (a) CENSUS BUREAU STUDY.—

8 (1) IN GENERAL.—Section 414(a) (42 U.S.C. 

9 614(a)) is amended to read as follows: 

10 ‘‘(a) IN GENERAL.—The Bureau of the Census shall 

11 implement or enhance a longitudinal survey of program 

12 participation, developed in consultation with the Secretary 

13 and made available to interested parties, to allow for the 

14 assessment of the outcomes of continued welfare reform 

15 on the economic and child well-being of low-income fami16 lies with children, including those who received assistance 

17 or services from a State program funded under this part, 

18 and, to the extent possible, shall provide State representa19 tive samples. The content of the survey should include 

20 such information as may be necessary to examine the 

21 issues of out-of-wedlock childbearing, marriage, welfare 

22 dependency and compliance with work requirements, the 

23 beginning and ending of spells of assistance, work, earn24 ings and employment stability, and the well-being of chil25 dren.’’. 
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1 (2) APPROPRIATION.—Section 414(b) (42 

2 U.S.C. 614(b)) is amended—

3 (A) by striking ‘‘1996,’’ and all that fol4 lows through ‘‘2003’’ and inserting ‘‘2006 

5 through 2010’’; and 

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

7 ‘‘Funds appropriated under this subsection 

8 shall remain available through fiscal year 2010 

9 to carry out subsection (a).’’. 

10 (b) GAO STUDY.—

11 (1) IN GENERAL.—The Comptroller General of 

12 the United States shall conduct a study to determine 

13 the combined effect of the phase-out rates for Fed14 eral programs and policies which provide support to 

15 low-income families and individuals as they move 

16 from welfare to work, at all earning levels up to 

17 $35,000 per year, for at least 5 States including 

18 Wisconsin and California, and any potential dis19 incentives the combined phase-out rates create for 

20 families to achieve independence or to marry. 

21 (2) REPORT.—Not later than 1 year after the 

22 date of the enactment of this subsection, the Comp23 troller General shall submit a report to Congress 

24 containing the results of the study conducted under 
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1 this section and, as appropriate, any recommenda2 tions consistent with the results. 

3 SEC. 117. DEFINITION OF ASSISTANCE. 

4 (a) IN GENERAL.—Section 419 (42 U.S.C. 619) is 

5 amended by adding at the end the following: 

6 ‘‘(6) ASSISTANCE.—

7 ‘‘(A) IN GENERAL.—The term ‘assistance’ 

8 means payment, by cash, voucher, or other 

9 means, to or for an individual or family for the 

10 purpose of meeting a subsistence need of the in11 dividual or family (including food, clothing, 

12 shelter, and related items, but not including 

13 costs of transportation or child care). 

14 ‘‘(B) EXCEPTION.—The term ‘assistance’ 

15 does not include a payment described in sub16 paragraph (A) to or for an individual or family 

17 on a short-term, nonrecurring basis (as defined 

18 by the State in accordance with regulations pre19 scribed by the Secretary).’’. 

20 (b) CONFORMING AMENDMENTS.—

21 (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is 

22 amended by striking ‘‘assistance’’ and inserting 

23 ‘‘aid’’. 
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1 (2) Section 404(f) (42 U.S.C. 604(f)) is amend2 ed by striking ‘‘assistance’’ and inserting ‘‘benefits 

3 or services’’. 

4 (3) Section 408(a)(5)(B)(i) (42 U.S.C. 

5 608(a)(5)(B)(i)) is amended in the heading by strik6 ing ‘‘ASSISTANCE’’ and inserting ‘‘AID’’. 

7 (4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is 

8 amended by striking ‘‘assistance’’ and inserting 

9 ‘‘aid’’. 

10 SEC. 118. TECHNICAL CORRECTIONS. 

11 (a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is 

12 amended by inserting a comma after ‘‘appropriate’’. 

13 (b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 

14 611(a)(1)(A)(ii)(III)) is amended by striking the last close 

15 parenthesis. 

16 (c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is 

17 amended by striking ‘‘section’’ and inserting ‘‘sections’’. 

18 (d)(1) Section 413 (42 U.S.C. 613) is amended by 

19 striking subsection (g) and redesignating subsections (h) 

20 through (j) and subsections (k) and (l) (as added by sec21 tions 112(c) and 115(a) of this Act, respectively) as sub22 sections (g) through (k), respectively. 

23 (2) Each of the following provisions is amended by 

24 striking ‘‘413(j)’’ and inserting ‘‘413(i)’’: 
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1 (A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C. 

2 603(a)(5)(A)(ii)(III)). 

3 (B) Section 403(a)(5)(F) (42 U.S.C. 

4 603(a)(5)(F)). 

5 (C) Section 403(a)(5)(G)(ii) (42 U.S.C. 

6 603(a)(5)(G)(ii)). 

7 (D) Section 412(a)(3)(B)(iv) (42 U.S.C. 

8 612(a)(3)(B)(iv)). 

9 SEC. 119. FATHERHOOD PROGRAM. 

10 (a) SHORT TITLE.—This section may be cited as the 

11 ‘‘Promotion and Support of Responsible Fatherhood and 

12 Healthy Marriage Act of 2005’’. 

13 (b) FATHERHOOD PROGRAM.—

14 (1) IN GENERAL.—Title I of the Personal Re15 sponsibility and Work Opportunity Reconciliation 

16 Act of 1996 (Public Law 104–193) is amended by 

17 adding at the end the following: 

18 ‘‘SEC. 117. FATHERHOOD PROGRAM. 

19 ‘‘(a) IN GENERAL.—Title IV (42 U.S.C. 601–679b) 

20 is amended by inserting after part B the following: 

21 ‘PART C—FATHERHOOD PROGRAM 

22 ‘SEC. 441. FINDINGS AND PURPOSES. 

23 ‘(a) FINDINGS.—The Congress finds that there is 

24 substantial evidence strongly indicating the urgent need 

25 to promote and support involved, committed, and respon-
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1 sible fatherhood, and to encourage and support healthy 

2 marriages between parents raising children, including data 

3 demonstrating the following: 

4 ‘(1) In approximately 84 percent of cases where 

5 a parent is absent, that parent is the father. 

6 ‘(2) If current trends continue, half of all chil7 dren born today will live apart from one of their par8 ents, usually their father, at some point before they 

9 turn 18. 

10 ‘(3) Where families (whether intact or with a 

11 parent absent) are living in poverty, a significant 

12 factor is the father’s lack of job skills. 

13 ‘(4) Committed and responsible fathering dur14 ing infancy and early childhood contributes to the 

15 development of emotional security, curiosity, and 

16 math and verbal skills. 

17 ‘(5) An estimated 19,400,000 children (27 per18 cent) live apart from their biological father. 

19 ‘(6) Forty percent of children under age 18 not 

20 living with their biological father had not seen their 

21 father even once in the last 12 months, according to 

22 national survey data. 

23 ‘(b) PURPOSES.—The purposes of this part are: 

24 ‘(1) To provide for projects and activities by 

25 public entities and by nonprofit community entities, 
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1 including religious organizations, designed to test 

2 promising approaches to accomplishing the following 

3 objectives: 

4 ‘(A) Promoting responsible, caring, and ef5 fective parenting through counseling, men6 toring, and parenting education, dissemination 

7 of educational materials and information on 

8 parenting skills, encouragement of positive fa9 ther involvement, including the positive involve10 ment of nonresident fathers, and other meth11 ods. 

12 ‘(B) Enhancing the abilities and commit13 ment of unemployed or low-income fathers to 

14 provide material support for their families and 

15 to avoid or leave welfare programs by assisting 

16 them to take full advantage of education, job 

17 training, and job search programs, to improve 

18 work habits and work skills, to secure career 

19 advancement by activities such as outreach and 

20 information dissemination, coordination, as ap21 propriate, with employment services and job 

22 training programs, including the One-Stop de23 livery system established under title I of the 

24 Workforce Investment Act of 1998, encourage25 ment and support of timely payment of current 
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1 child support and regular payment toward past 

2 due child support obligations in appropriate 

3 cases, and other methods. 

4 ‘(C) Improving fathers’ ability to effec5 tively manage family business affairs by means 

6 such as education, counseling, and mentoring in 

7 matters including household management, 

8 budgeting, banking, and handling of financial 

9 transactions, time management, and home 

10 maintenance. 

11 ‘(D) Encouraging and supporting healthy 

12 marriages and married fatherhood through such 

13 activities as premarital education, including the 

14 use of premarital inventories, marriage prepara15 tion programs, skills-based marriage education 

16 programs, marital therapy, couples counseling, 

17 divorce education and reduction programs, di18 vorce mediation and counseling, relationship 

19 skills enhancement programs, including those 

20 designed to reduce child abuse and domestic vi21 olence, and dissemination of information about 

22 the benefits of marriage for both parents and 

23 children. 

24 ‘(2) Through the projects and activities de25 scribed in paragraph (1), to improve outcomes for 
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1 children with respect to measures such as increased 

2 family income and economic security, improved 

3 school performance, better health, improved emo4 tional and behavioral stability and social adjustment, 

5 and reduced risk of delinquency, crime, substance 

6 abuse, child abuse and neglect, teen sexual activity, 

7 and teen suicide. 

8 ‘(3) To evaluate the effectiveness of various ap9 proaches and to disseminate findings concerning out10 comes and other information in order to encourage 

11 and facilitate the replication of effective approaches 

12 to accomplishing these objectives. 

13 ‘SEC. 442. DEFINITIONS. 

14 ‘In this part, the terms ‘‘Indian tribe’’ and ‘‘tribal 

15 organization’’ have the meanings given them in sub16 sections (e) and (l), respectively, of section 4 of the Indian 

17 Self-Determination and Education Assistance Act. 

18 ‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS. 

19 ‘(a) IN GENERAL.—The Secretary may make grants 

20 for fiscal years 2006 through 2010 to public and nonprofit 

21 community entities, including religious organizations, and 

22 to Indian tribes and tribal organizations, for demonstra23 tion service projects and activities designed to test the ef24 fectiveness of various approaches to accomplish the objec25 tives specified in section 441(b)(1). 
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1 ‘(b) ELIGIBILITY CRITERIA FOR FULL SERVICE

2 GRANTS.—In order to be eligible for a grant under this 

3 section, except as specified in subsection (c), an entity 

4 shall submit an application to the Secretary containing the 

5 following: 

6 ‘(1) PROJECT DESCRIPTION.—A statement in7 cluding—

8 ‘(A) a description of the project and how 

9 it will be carried out, including the geographical 

10 area to be covered and the number and charac11 teristics of clients to be served, and how it will 

12 address each of the 4 objectives specified in sec13 tion 441(b)(1); and 

14 ‘(B) a description of the methods to be 

15 used by the entity or its contractor to assess 

16 the extent to which the project was successful 

17 in accomplishing its specific objectives and the 

18 general objectives specified in section 441(b)(1). 

19 ‘(2) EXPERIENCE AND QUALIFICATIONS.—A 

20 demonstration of ability to carry out the project, by 

21 means such as demonstration of experience in suc22 cessfully carrying out projects of similar design and 

23 scope, and such other information as the Secretary 

24 may find necessary to demonstrate the entity’s ca25 pacity to carry out the project, including the entity’s 
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1 ability to provide the non-Federal share of project 

2 resources. 

3 ‘(3) ADDRESSING CHILD ABUSE AND NEGLECT

4 AND DOMESTIC VIOLENCE.—A description of how 

5 the entity will assess for the presence of, and inter6 vene to resolve, domestic violence and child abuse 

7 and neglect, including how the entity will coordinate 

8 with State and local child protective service and do9 mestic violence programs. 

10 ‘(4) ADDRESSING CONCERNS RELATING TO

11 SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A com12 mitment to make available to each individual partici13 pating in the project education about alcohol, to14 bacco, and other drugs, and about the health risks 

15 associated with abusing such substances, and infor16 mation about diseases and conditions transmitted 

17 through substance abuse and sexual contact, includ18 ing HIV/AIDS, and to coordinate with providers of 

19 services addressing such problems, as appropriate. 

20 ‘(5) COORDINATION WITH SPECIFIED PRO21 GRAMS.—An undertaking to coordinate, as appro22 priate, with State and local entities responsible for 

23 the programs under parts A, B, and D of this title, 

24 including programs under title I of the Workforce 

25 Investment Act of 1998 (including the One-Stop de-
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1 livery system), and such other programs as the Sec2 retary may require. 

3 ‘(6) RECORDS, REPORTS, AND AUDITS.—An 

4 agreement to maintain such records, make such re5 ports, and cooperate with such reviews or audits as 

6 the Secretary may find necessary for purposes of 

7 oversight of project activities and expenditures. 

8 ‘(7) SELF-INITIATED EVALUATION.—If the enti9 ty elects to contract for independent evaluation of 

10 the project (part or all of the cost of which may be 

11 paid for using grant funds), a commitment to sub12 mit to the Secretary a copy of the evaluation report 

13 within 30 days after completion of the report and 

14 not more than 1 year after completion of the project. 

15 ‘(8) COOPERATION WITH SECRETARY’S OVER16 SIGHT AND EVALUATION.—An agreement to cooper17 ate with the Secretary’s evaluation of projects as18 sisted under this section, by means including ran19 dom assignment of clients to service recipient and 

20 control groups, if determined by the Secretary to be 

21 appropriate, and affording the Secretary access to 

22 the project and to project-related records and docu23 ments, staff, and clients. 

24 ‘(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE

25 GRANTS.—In order to be eligible for a grant under this 
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1 section in an amount under $25,000 per fiscal year, an 

2 entity shall submit an application to the Secretary con3 taining the following: 

4 ‘(1) PROJECT DESCRIPTION.—A description of 

5 the project and how it will be carried out, including 

6 the number and characteristics of clients to be 

7 served, the proposed duration of the project, and 

8 how it will address at least 1 of the 4 objectives 

9 specified in section 441(b)(1). 

10 ‘(2) QUALIFICATIONS.—Such information as 

11 the Secretary may require as to the capacity of the 

12 entity to carry out the project, including any pre13 vious experience with similar activities. 

14 ‘(3) COORDINATION WITH RELATED PRO15 GRAMS.—As required by the Secretary in appro16 priate cases, an undertaking to coordinate and co17 operate with State and local entities responsible for 

18 specific programs relating to the objectives of the 

19 project including, as appropriate, jobs programs and 

20 programs serving children and families. 

21 ‘(4) RECORDS, REPORTS, AND AUDITS.—An 

22 agreement to maintain such records, make such re23 ports, and cooperate with such reviews or audits as 

24 the Secretary may find necessary for purposes of 

25 oversight of project activities and expenditures. 
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1 ‘(5) COOPERATION WITH SECRETARY’S OVER2 SIGHT AND EVALUATION.—An agreement to cooper3 ate with the Secretary’s evaluation of projects as4 sisted under this section, by means including afford5 ing the Secretary access to the project and to 

6 project-related records and documents, staff, and cli7 ents. 

8 ‘(d) CONSIDERATIONS IN AWARDING GRANTS.—

9 ‘(1) DIVERSITY OF PROJECTS.—In awarding 

10 grants under this section, the Secretary shall seek to 

11 achieve a balance among entities of differing sizes, 

12 entities in differing geographic areas, entities in 

13 urban and in rural areas, and entities employing dif14 fering methods of achieving the purposes of this sec15 tion, including working with the State agency re16 sponsible for the administration of part D to help fa17 thers satisfy child support arrearage obligations. 

18 ‘(2) PREFERENCE FOR PROJECTS SERVING

19 LOW-INCOME FATHERS.—In awarding grants under 

20 this section, the Secretary may give preference to 

21 applications for projects in which a majority of the 

22 clients to be served are low-income fathers. 

23 ‘(e) FEDERAL SHARE.—

24 ‘(1) IN GENERAL.—Grants for a project under 

25 this section for a fiscal year shall be available for a 
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1 share of the cost of such project in such fiscal year 

2 equal to—

3 ‘(A) up to 80 percent (or up to 90 percent, 

4 if the entity demonstrates to the Secretary’s 

5 satisfaction circumstances limiting the entity’s 

6 ability to secure non-Federal resources) in the 

7 case of a project under subsection (b); and 

8 ‘(B) up to 100 percent, in the case of a 

9 project under subsection (c). 

10 ‘(2) NON-FEDERAL SHARE.—The non-Federal 

11 share may be in cash or in kind. In determining the 

12 amount of the non-Federal share, the Secretary may 

13 attribute fair market value to goods, services, and 

14 facilities contributed from non-Federal sources. 

15 ‘SEC. 444. MULTICITY, MULTISTATE DEMONSTRATION 

16 PROJECTS. 

17 ‘(a) IN GENERAL.—The Secretary may make grants 

18 under this section for fiscal years 2006 through 2010 to 

19 eligible entities (as specified in subsection (b)) for 2 

20 multicity, multistate projects demonstrating approaches to 

21 achieving the objectives specified in section 441(b)(1). One 

22 of the projects shall test the use of married couples to 

23 deliver program services. 

24 ‘(b) ELIGIBLE ENTITIES.—An entity eligible for a 

25 grant under this section must be a national nonprofit fa-
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1 therhood promotion organization that meets the following 

2 requirements: 

3 ‘(1) EXPERIENCE WITH FATHERHOOD PRO4 GRAMS.—The organization must have substantial ex5 perience in designing and successfully conducting 

6 programs that meet the purposes described in sec7 tion 441. 

8 ‘(2) EXPERIENCE WITH MULTICITY, 

9 MULTISTATE PROGRAMS AND GOVERNMENT COORDI10 NATION.—The organization must have experience in 

11 simultaneously conducting such programs in more 

12 than 1 major metropolitan area in more than 1 

13 State and in coordinating such programs, where ap14 propriate, with State and local government agencies 

15 and private, nonprofit agencies (including commu16 nity-based and religious organizations), including 

17 State or local agencies responsible for child support 

18 enforcement and workforce development. 

19 ‘(c) APPLICATION REQUIREMENTS.—In order to be 

20 eligible for a grant under this section, an entity must sub21 mit to the Secretary an application that includes the fol22 lowing: 

23 ‘(1) QUALIFICATIONS.—
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1 ‘(A) ELIGIBLE ENTITY.—A demonstration 

2 that the entity meets the requirements of sub3 section (b). 

4 ‘(B) OTHER.—Such other information as 

5 the Secretary may find necessary to dem6 onstrate the entity’s capacity to carry out the 

7 project, including the entity’s ability to provide 

8 the non-Federal share of project resources. 

9 ‘(2) PROJECT DESCRIPTION.—A description of 

10 and commitments concerning the project design, in11 cluding the following: 

12 ‘(A) IN GENERAL.—A detailed description 

13 of the proposed project design and how it will 

14 be carried out, which shall—

15 ‘(i) provide for the project to be con16 ducted in at least 3 major metropolitan 

17 areas; 

18 ‘(ii) state how it will address each of 

19 the 4 objectives specified in section 

20 441(b)(1); 

21 ‘(iii) demonstrate that there is a suffi22 cient number of potential clients to allow 

23 for the random selection of individuals to 

24 participate in the project and for compari25 sons with appropriate control groups com-
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1 posed of individuals who have not partici2 pated in such projects; and 

3 ‘(iv) demonstrate that the project is 

4 designed to direct a majority of project re5 sources to activities serving low-income fa6 thers (but the project need not make serv7 ices available on a means-tested basis). 

8 ‘(B) OVERSIGHT, EVALUATION, AND AD9 JUSTMENT COMPONENT.—An agreement that 

10 the entity—

11 ‘(i) in consultation with the evaluator 

12 selected pursuant to section 445, and as 

13 required by the Secretary, will modify the 

14 project design, initially and (if necessary) 

15 subsequently throughout the duration of 

16 the project, in order to facilitate ongoing 

17 and final oversight and evaluation of 

18 project operation and outcomes (by means 

19 including, to the maximum extent feasible, 

20 random assignment of clients to service re21 cipient and control groups), and to provide 

22 for mid-course adjustments in project de23 sign indicated by interim evaluations; 
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1 ‘(ii) will submit to the Secretary re2 vised descriptions of the project design as 

3 modified in accordance with clause (i); and 

4 ‘(iii) will cooperate fully with the Sec5 retary’s ongoing oversight and ongoing and 

6 final evaluation of the project, by means 

7 including affording the Secretary access to 

8 the project and to project-related records 

9 and documents, staff, and clients. 

10 ‘(3) ADDRESSING CHILD ABUSE AND NEGLECT

11 AND DOMESTIC VIOLENCE.—A description of how 

12 the entity will assess for the presence of, and inter13 vene to resolve, domestic violence and child abuse 

14 and neglect, including how the entity will coordinate 

15 with State and local child protective service and do16 mestic violence programs. 

17 ‘(4) ADDRESSING CONCERNS RELATING TO

18 SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A com19 mitment to make available to each individual partici20 pating in the project education about alcohol, to21 bacco, and other drugs, and about the health risks 

22 associated with abusing such substances, and infor23 mation about diseases and conditions transmitted 

24 through substance abuse and sexual contact, includ-
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1 ing HIV/AIDS, and to coordinate with providers of 

2 services addressing such problems, as appropriate. 

3 ‘(5) COORDINATION WITH SPECIFIED PRO4 GRAMS.—An undertaking to coordinate, as appro5 priate, with State and local entities responsible for 

6 the programs funded under parts A, B, and D of 

7 this title, programs under title I of the Workforce 

8 Investment Act of 1998 (including the One-Stop de9 livery system), and such other programs as the Sec10 retary may require. 

11 ‘(6) RECORDS, REPORTS, AND AUDITS.—An 

12 agreement to maintain such records, make such re13 ports, and cooperate with such reviews or audits (in 

14 addition to those required under the preceding provi15 sions of paragraph (2)) as the Secretary may find 

16 necessary for purposes of oversight of project activi17 ties and expenditures. 

18 ‘(d) FEDERAL SHARE.—

19 ‘(1) IN GENERAL.—Grants for a project under 

20 this section for a fiscal year shall be available for up 

21 to 80 percent of the cost of such project in such fis22 cal year. 

23 ‘(2) NON-FEDERAL SHARE.—The non-Federal 

24 share may be in cash or in kind. In determining the 

25 amount of the non-Federal share, the Secretary may 
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1 attribute fair market value to goods, services, and 

2 facilities contributed from non-Federal sources. 

3 ‘SEC. 445. EVALUATION. 

4 ‘(a) IN GENERAL.—The Secretary, directly or by con5 tract or cooperative agreement, shall evaluate the effec6 tiveness of service projects funded under sections 443 and 

7 444 from the standpoint of the purposes specified in sec8 tion 441(b)(1). 

9 ‘(b) EVALUATION METHODOLOGY.—Evaluations 

10 under this section shall—

11 ‘(1) include, to the maximum extent feasible, 

12 random assignment of clients to service delivery and 

13 control groups and other appropriate comparisons of 

14 groups of individuals receiving and not receiving 

15 services; 

16 ‘(2) describe and measure the effectiveness of 

17 the projects in achieving their specific project goals; 

18 and 

19 ‘(3) describe and assess, as appropriate, the im20 pact of such projects on marriage, parenting, domes21 tic violence, child abuse and neglect, money manage22 ment, employment and earnings, payment of child 

23 support, and child well-being, health, and education. 
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1 ‘(c) EVALUATION REPORTS.—The Secretary shall 

2 publish the following reports on the results of the evalua3 tion: 

4 ‘(1) An implementation evaluation report cov5 ering the first 24 months of the activities under this 

6 part to be completed by 36 months after initiation 

7 of such activities. 

8 ‘(2) A final report on the evaluation to be com9 pleted by September 30, 2013. 

10 ‘SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE. 

11 ‘The Secretary is authorized, by grant, contract, or 

12 cooperative agreement, to carry out projects and activities 

13 of national significance relating to fatherhood promotion, 

14 including—

15 ‘(1) COLLECTION AND DISSEMINATION OF IN16 FORMATION.—Assisting States, communities, and 

17 private entities, including religious organizations, in 

18 efforts to promote and support marriage and respon19 sible fatherhood by collecting, evaluating, developing, 

20 and making available (through the Internet and by 

21 other means) to all interested parties information re22 garding approaches to accomplishing the objectives 

23 specified in section 441(b)(1). 

24 ‘(2) MEDIA CAMPAIGN.—Developing, promoting, 

25 and distributing to interested States, local govern-
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1 ments, public agencies, and private nonprofit organi2 zations, including charitable and religious organiza3 tions, a media campaign that promotes and encour4 ages involved, committed, and responsible fatherhood 

5 and married fatherhood. 

6 ‘(3) TECHNICAL ASSISTANCE.—Providing tech7 nical assistance, including consultation and training, 

8 to public and private entities, including community 

9 organizations and faith-based organizations, in the 

10 implementation of local fatherhood promotion pro11 grams. 

12 ‘(4) RESEARCH.—Conducting research related 

13 to the purposes of this part. 

14 ‘SEC. 447. NONDISCRIMINATION. 

15 ‘The projects and activities assisted under this part 

16 shall be available on the same basis to all fathers and ex17 pectant fathers able to benefit from such projects and ac18 tivities, including married and unmarried fathers and cus19 todial and noncustodial fathers, with particular attention 

20 to low-income fathers, and to mothers and expectant 

21 mothers on the same basis as to fathers. 
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1 ‘SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RES2 ERVATION FOR CERTAIN PURPOSE. 

3 ‘(a) AUTHORIZATION.—There are authorized to be 

4 appropriated $20,000,000 for each of fiscal years 2006 

5 through 2010 to carry out the provisions of this part. 

6 ‘(b) RESERVATION.—Of the amount appropriated 

7 under this section for each fiscal year, not more than 15 

8 percent shall be available for the costs of the multicity, 

9 multicounty, multistate demonstration projects under sec10 tion 444, evaluations under section 445, and projects of 

11 national significance under section 446.’. 

12 ‘‘(b) INAPPLICABILITY OF EFFECTIVE DATE PROVI13 SIONS.—Section 116 shall not apply to the amendment 

14 made by subsection (a) of this section.’’. 

15 (2) CLERICAL AMENDMENT.—Section 2 of such 

16 Act is amended in the table of contents by inserting 

17 after the item relating to section 116 the following 

18 new item:

‘‘117. Fatherhood program.’’.

19 SEC. 120. STATE OPTION TO MAKE TANF PROGRAMS MAN20 DATORY PARTNERS WITH ONE-STOP EMPLOY21 MENT TRAINING CENTERS. 

22 Section 408 of the Social Security Act (42 U.S.C. 

23 608) is amended by adding at the end the following: 

24 ‘‘(h) STATE OPTION TO MAKE TANF PROGRAMS

25 MANDATORY PARTNERS WITH ONE-STOP EMPLOYMENT
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1 TRAINING CENTERS.—For purposes of section 121(b) of 

2 the Workforce Investment Act of 1998, a State program 

3 funded under part A of title IV of the Social Security Act 

4 shall be considered a program referred to in paragraph 

5 (1)(B) of such section, unless, after the date of the enact6 ment of this subsection, the Governor of the State notifies 

7 the Secretaries of Health and Human Services and Labor 

8 in writing of the decision of the Governor not to make 

9 the State program a mandatory partner.’’. 

10 SEC. 121. SENSE OF THE CONGRESS. 

11 It is the sense of the Congress that a State welfare12 to-work program should include a mentoring program. 

13 SEC. 122. EXTENSION THROUGH FISCAL YEAR 2005. 

14 (a) IN GENERAL.—Except as otherwise provided in 

15 this Act and the amendments made by this Act, activities 

16 authorized by part A of title IV of the Social Security Act, 

17 and by sections 429A, 1108(b), and 1130(a) of such Act, 

18 shall continue through September 30, 2005, in the manner 

19 authorized for fiscal year 2004, and out of any money in 

20 the Treasury of the United States not otherwise appro21 priated, there are hereby appropriated such sums as may 

22 be necessary for such purpose. Grants and payments may 

23 be made pursuant to this authority through the fourth 

24 quarter of fiscal year 2005 at the level provided for such 

25 activities through the fourth quarter of fiscal year 2004, 
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1 except that in the case of section 403(a)(4) of such Act, 

2 the level shall be $100,000,000. 

3 (b) EFFECTIVE DATE.—Subsection (a) shall take ef4 fect on the date of the enactment of this Act. 

5 TITLE II—CHILD CARE 

6 SEC. 201. SHORT TITLE. 

7 This title may be cited as the ‘‘Caring for Children 

8 Act of 2005’’. 

9 SEC. 202. GOALS. 

10 (a) GOALS.—Section 658A(b) of the Child Care and 

11 Development Block Grant Act of 1990 (42 U.S.C. 9801 

12 note) is amended—

13 (1) in paragraph (3) by striking ‘‘encourage’’ 

14 and inserting ‘‘assist’’, 

15 (2) by amending paragraph (4) to read as fol16 lows: 

17 ‘‘(4) to assist States to provide child care to 

18 low-income parents;’’, 

19 (3) by redesignating paragraph (5) as para20 graph (7), and 

21 (4) by inserting after paragraph (4) the fol22 lowing: 

23 ‘‘(5) to encourage States to improve the quality 

24 of child care available to families; 
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1 ‘‘(6) to promote school readiness by encour2 aging the exposure of young children in child care to 

3 nurturing environments and developmentally-appro4 priate activities, including activities to foster early 

5 cognitive and literacy development; and’’. 

6 (b) CONFORMING AMENDMENT.—Section 

7 658E(c)(3)(B) of the Child Care and Development Block 

8 Grant Act of 1990 (42 U.S.C. 9858c(c)(3)(B)) is amended 

9 by striking ‘‘through (5)’’ and inserting ‘‘through (7)’’. 

10 SEC. 203. AUTHORIZATION OF APPROPRIATIONS. 

11 Section 658B of the Child Care and Development 

12 Block Grant Act of 1990 (42 U.S.C. 9858) is amended—

13 (1) by striking ‘‘is’’ and inserting ‘‘are’’, and 

14 (2) by striking ‘‘$1,000,000,000 for each of the 

15 fiscal years 1996 through 2002’’ and inserting 

16 ‘‘$2,100,000,000 for fiscal year 2005, 

17 $2,300,000,000 for fiscal year 2006, 

18 $2,500,000,000 for fiscal year 2007, 

19 $2,700,000,000 for fiscal year 2008, 

20 $2,900,000,000 for fiscal year 2009, and 

21 $3,100,000,000 for fiscal year 2010’’. 

22 SEC. 204. APPLICATION AND PLAN. 

23 Section 658E(c)(2) of the Child Care and Develop24 ment Block Grant Act of 1990 (42 U.S.C. 9858C(c)(2)) 

25 is amended—
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1 (1) by amending subparagraph (D) to read as 

2 follows: 

3 ‘‘(D) CONSUMER AND CHILD CARE PRO4 VIDER EDUCATION INFORMATION.—Certify that 

5 the State will collect and disseminate, through 

6 resource and referral services and other means 

7 as determined by the State, to parents of eligi8 ble children, child care providers, and the gen9 eral public, information regarding—

10 ‘‘(i) the promotion of informed child 

11 care choices, including information about 

12 the quality and availability of child care 

13 services; 

14 ‘‘(ii) research and best practices on 

15 children’s development, including early cog16 nitive development; 

17 ‘‘(iii) the availability of assistance to 

18 obtain child care services; and 

19 ‘‘(iv) other programs for which fami20 lies that receive child care services for 

21 which financial assistance is provided 

22 under this subchapter may be eligible, in23 cluding the food stamp program, the WIC 

24 program under section 17 of the Child Nu25 trition Act of 1966, the child and adult 
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1 care food program under section 17 of the 

2 Richard B. Russell National School Lunch 

3 Act, and the medicaid and SCHIP pro4 grams under titles XIX and XXI of the 

5 Social Security Act.’’, and 

6 (2) by inserting after subparagraph (H) the fol7 lowing: 

8 ‘‘(I) COORDINATION WITH OTHER EARLY

9 CHILD CARE SERVICES AND EARLY CHILDHOOD

10 EDUCATION PROGRAMS.—Demonstrate how the 

11 State is coordinating child care services pro12 vided under this subchapter with Head Start, 

13 Early Reading First, Even Start, Ready-To14 Learn Television, State pre-kindergarten pro15 grams, and other early childhood education pro16 grams to expand accessibility to and continuity 

17 of care and early education without displacing 

18 services provided by the current early care and 

19 education delivery system. 

20 ‘‘(J) PUBLIC-PRIVATE PARTNERSHIPS.—

21 Demonstrate how the State encourages partner22 ships with private and other public entities to 

23 leverage existing service delivery systems of 

24 early childhood education and increase the sup25 ply and quality of child care services. 
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1 ‘‘(K) CHILD CARE SERVICE QUALITY.—

2 ‘‘(i) CERTIFICATION.—For each fiscal 

3 year after fiscal year 2006, certify that 

4 during the then preceding fiscal year the 

5 State was in compliance with section 658G 

6 and describe how funds were used to com7 ply with such section during such pre8 ceding fiscal year. 

9 ‘‘(ii) STRATEGY.—For each fiscal year 

10 after fiscal year 2006, contain an outline 

11 of the strategy the State will implement 

12 during such fiscal year for which the State 

13 plan is submitted, to address the quality of 

14 child care services in the State available to 

15 low-income parents from eligible child care 

16 providers, and include in such strategy—

17 ‘‘(I) a statement specifying how 

18 the State will address the activities 

19 described in paragraphs (1), (2), and 

20 (3) of section 658G; 

21 ‘‘(II) a description of quantifi22 able, objective measures for evaluating 

23 the quality of child care services sepa24 rately with respect to the activities 

25 listed in each of such paragraphs that 
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1 the State will use to evaluate its 

2 progress in improving the quality of 

3 such child care services; 

4 ‘‘(III) a list of State-developed 

5 child care service quality targets for 

6 such fiscal year quantified on the 

7 basis of such measures; and 

8 ‘‘(IV) for each fiscal year after 

9 fiscal year 2006, a report on the 

10 progress made to achieve such targets 

11 during the then preceding fiscal year. 

12 ‘‘(iii) RULE OF CONSTRUCTION.—

13 Nothing in this subparagraph shall be con14 strued to require that the State apply 

15 measures for evaluating quality to specific 

16 types of child care providers. 

17 ‘‘(L) ACCESS TO CARE FOR CERTAIN POPU18 LATIONS.—Demonstrate how the State is ad19 dressing the child care needs of parents eligible 

20 for child care services for which financial assist21 ance is provided under this subchapter who 

22 have children with special needs, work nontradi23 tional hours, or require child care services for 

24 infants or toddlers.’’. 
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1 SEC. 205. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD 

2 CARE. 

3 Section 658G of the Child Care and Development 

4 Block Grant Act of 1990 (42 U.S.C. 9858e) is amended 

5 to read as follows: 

6 ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF 

7 CHILD CARE SERVICES. 

8 ‘‘A State that receives funds to carry out this sub9 chapter for a fiscal year, shall use not less than 6 percent 

10 of the amount of such funds for activities provided 

11 through resource and referral services or other means, 

12 that are designed to improve the quality of child care serv13 ices in the State available to low-income parents from eli14 gible child care providers. Such activities include—

15 ‘‘(1) programs that provide training, education, 

16 and other professional development activities to en17 hance the skills of the child care workforce, includ18 ing training opportunities for caregivers in informal 

19 care settings; 

20 ‘‘(2) activities within child care settings to en21 hance early learning for young children, to promote 

22 early literacy, and to foster school readiness; 

23 ‘‘(3) initiatives to increase the retention and 

24 compensation of child care providers, including 

25 tiered reimbursement rates for providers that meet 

26 quality standards as defined by the State; or 
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1 ‘‘(4) other activities deemed by the State to im2 prove the quality of child care services provided in 

3 such State.’’. 

4 SEC. 206. REPORT BY SECRETARY. 

5 Section 658L of the Child Care and Development 

6 Block Grant Act of 1990 (42 U.S.C. 9858j) is amended 

7 to read as follows: 

8 ‘‘SEC. 658L. REPORT BY SECRETARY. 

9 ‘‘(a) REPORT REQUIRED.—Not later than October 1, 

10 2007, and biennially thereafter, the Secretary shall pre11 pare and submit to the Committee on Education and the 

12 Workforce of the House of Representatives and the Com13 mittee on Health, Education, Labor and Pensions of the 

14 Senate a report that contains the following: 

15 ‘‘(1) A summary and analysis of the data and 

16 information provided to the Secretary in the State 

17 reports submitted under section 658K. 

18 ‘‘(2) Aggregated statistics on the supply of, de19 mand for, and quality of child care, early education, 

20 and non-school-hours programs. 

21 ‘‘(3) An assessment, and where appropriate, 

22 recommendations for the Congress concerning ef23 forts that should be undertaken to improve the ac24 cess of the public to quality and affordable child care 

25 in the United States. 
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1 ‘‘(b) COLLECTION OF INFORMATION.—The Secretary 

2 may utilize the national child care data system available 

3 through resource and referral organizations at the local, 

4 State, and national level to collect the information re5 quired by subsection (a)(2).’’

6 SEC. 207. DEFINITIONS. 

7 Section 658P(4)(B) of the Child Care and Develop8 ment Block Grant Act of 1990 (42 U.S.C. 9858N(4)(B)) 

9 is amended by striking ‘‘85 percent of the State median 

10 income’’ and inserting ‘‘income levels as established by the 

11 State, prioritized by need,’’. 

12 SEC. 208. ENTITLEMENT FUNDING. 

13 Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amend14 ed—

15 (1) by striking ‘‘and’’ at the end of subpara16 graph (E); 

17 (2) by striking the period at the end of sub18 paragraph (F) and inserting ‘‘; and’’; and 

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

20 ‘‘(G) $2,917,000,000 for each of fiscal 

21 years 2006 through 2010.’’. 
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1 TITLE III—CHILD SUPPORT 

2 SEC. 301. FEDERAL MATCHING FUNDS FOR LIMITED PASS 

3 THROUGH OF CHILD SUPPORT PAYMENTS TO 

4 FAMILIES RECEIVING TANF. 

5 (a) IN GENERAL.—Section 457(a) (42 U.S.C. 

6 657(a)) is amended—

7 (1) in paragraph (1)(A), by inserting ‘‘subject 

8 to paragraph (7)’’ before the semicolon; and 

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

10 ‘‘(7) FEDERAL MATCHING FUNDS FOR LIMITED

11 PASS THROUGH OF CHILD SUPPORT PAYMENTS TO

12 FAMILIES RECEIVING TANF.—Notwithstanding para13 graph (1), a State shall not be required to pay to 

14 the Federal Government the Federal share of an 

15 amount collected during a month on behalf of a fam16 ily that is a recipient of assistance under the State 

17 program funded under part A, to the extent that—

18 ‘‘(A) the State distributes the amount to 

19 the family; 

20 ‘‘(B) the total of the amounts so distrib21 uted to the family during the month—

22 ‘‘(i) exceeds the amount (if any) that, 

23 as of December 31, 2001, was required 

24 under State law to be distributed to a fam25 ily under paragraph (1)(B); and 
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1 ‘‘(ii) does not exceed the greater of—

2 ‘‘(I) $100; or 

3 ‘‘(II) $50 plus the amount de4 scribed in clause (i); and 

5 ‘‘(C) the amount is disregarded in deter6 mining the amount and type of assistance pro7 vided to the family under the State program 

8 funded under part A.’’. 

9 (b) APPLICABILITY.—The amendments made by sub10 section (a) shall apply to amounts distributed on or after 

11 October 1, 2007. 

12 SEC. 302. STATE OPTION TO PASS THROUGH ALL CHILD 

13 SUPPORT PAYMENTS TO FAMILIES THAT 

14 FORMERLY RECEIVED TANF. 

15 (a) IN GENERAL.—Section 457(a) (42 U.S.C. 

16 657(a)), as amended by section 301(a) of this Act, is 

17 amended—

18 (1) in paragraph (2)(B), in the matter pre19 ceding clause (i), by inserting ‘‘, except as provided 

20 in paragraph (8),’’ after ‘‘shall’’; and 

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

22 ‘‘(8) STATE OPTION TO PASS THROUGH ALL

23 CHILD SUPPORT PAYMENTS TO FAMILIES THAT FOR24 MERLY RECEIVED TANF.—In lieu of applying para25 graph (2) to any family described in paragraph (2), 
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1 a State may distribute to the family any amount col2 lected during a month on behalf of the family.’’. 

3 (b) APPLICABILITY.—The amendments made by sub4 section (a) shall apply to amounts distributed on or after 

5 October 1, 2007. 

6 SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF 

7 CHILD SUPPORT ORDERS FOR FAMILIES RE8 CEIVING TANF. 

9 (a) IN GENERAL.—Section 466(a)(10)(A)(i) (42 

10 U.S.C. 666(a)(10)(A)(i)) is amended—

11 (1) by striking ‘‘parent, or,’’ and inserting 

12 ‘‘parent or’’; and 

13 (2) by striking ‘‘upon the request of the State 

14 agency under the State plan or of either parent,’’. 

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

16 subsection (a) shall take effect on October 1, 2007. 

17 SEC. 304. MANDATORY FEE FOR SUCCESSFUL CHILD SUP18 PORT COLLECTION FOR FAMILY THAT HAS 

19 NEVER RECEIVED TANF. 

20 (a) IN GENERAL.—Section 454(6)(B) (42 U.S.C. 

21 654(6)(B)) is amended—

22 (1) by inserting ‘‘(i)’’ after ‘‘(B)’’; 

23 (2) by redesignating clauses (i) and (ii) as sub24 clauses (I) and (II), respectively; 

25 (3) by adding ‘‘and’’ after the semicolon; and 
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1 (4) by adding after and below the end the fol2 lowing new clause: 

3 ‘‘(ii) in the case of an individual who has 

4 never received assistance under a State pro5 gram funded under part A and for whom the 

6 State has collected at least $500 of support, the 

7 State shall impose an annual fee of $25 for 

8 each case in which services are furnished, which 

9 shall be retained by the State from support col10 lected on behalf of the individual (but not from 

11 the 1st $500 so collected), paid by the indi12 vidual applying for the services, recovered from 

13 the absent parent, or paid by the State out of 

14 its own funds (the payment of which from State 

15 funds shall not be considered as an administra16 tive cost of the State for the operation of the 

17 plan, and such fees shall be considered income 

18 to the program);’’. 

19 (b) CONFORMING AMENDMENT.—Section 457(a)(3) 

20 (42 U.S.C. 657(a)(3)) is amended to read as follows: 

21 ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST22 ANCE.—In the case of any other family, the State 

23 shall distribute to the family the portion of the 

24 amount so collected that remains after withholding 

25 any fee pursuant to section 454(6)(B)(ii).’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on October 1, 2006. 

3 SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT 

4 PAYMENTS. 

5 Not later than 6 months after the date of the enact6 ment of this Act, the Secretary of Health and Human 

7 Services shall submit to the Committee on Ways and 

8 Means of the House of Representatives and the Committee 

9 on Finance of the Senate a report on the procedures that 

10 the States use generally to locate custodial parents for 

11 whom child support has been collected but not yet distrib12 uted. The report shall include an estimate of the total 

13 amount of undistributed child support and the average 

14 length of time it takes undistributed child support to be 

15 distributed. To the extent the Secretary deems appro16 priate, the Secretary shall include in the report rec17 ommendations as to whether additional procedures should 

18 be established at the State or Federal level to expedite 

19 the payment of undistributed child support. 

20 SEC. 306. DECREASE IN AMOUNT OF CHILD SUPPORT AR21 REARAGE TRIGGERING PASSPORT DENIAL. 

22 (a) IN GENERAL.—Section 452(k)(1) (42 U.S.C. 

23 652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting 

24 ‘‘$2,500’’. 
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1 (b) CONFORMING AMENDMENT.—Section 454(31) 

2 (42 U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and 

3 inserting ‘‘$2,500’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall take effect on October 1, 2006. 

6 SEC. 307. USE OF TAX REFUND INTERCEPT PROGRAM TO 

7 COLLECT PAST-DUE CHILD SUPPORT ON BE8 HALF OF CHILDREN WHO ARE NOT MINORS. 

9 (a) IN GENERAL.—Section 464 (42 U.S.C. 664) is 

10 amended—

11 (1) in subsection (a)(2)(A), by striking ‘‘(as 

12 that term is defined for purposes of this paragraph 

13 under subsection (c))’’; and 

14 (2) in subsection (c)—

15 (A) in paragraph (1)—

16 (i) by striking ‘‘(1) Except as pro17 vided in paragraph (2), as used in’’ and in18 serting ‘‘In’’; and 

19 (ii) by inserting ‘‘(whether or not a 

20 minor)’’ after ‘‘a child’’ each place it ap21 pears; and 

22 (B) by striking paragraphs (2) and (3). 

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

24 subsection (a) shall take effect on October 1, 2007. 
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1 SEC. 308. GARNISHMENT OF COMPENSATION PAID TO VET2 ERANS FOR SERVICE-CONNECTED DISABIL3 ITIES IN ORDER TO ENFORCE CHILD SUP4 PORT OBLIGATIONS. 

5 (a) IN GENERAL.—Section 459(h) (42 U.S.C. 

6 659(h)) is amended—

7 (1) in paragraph (1)(A)(ii)(V), by striking all 

8 that follows ‘‘Armed Forces’’ and inserting a semi9 colon; and 

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

11 ‘‘(3) LIMITATIONS WITH RESPECT TO COM12 PENSATION PAID TO VETERANS FOR SERVICE-CON13 NECTED DISABILITIES.—Notwithstanding any other 

14 provision of this section: 

15 ‘‘(A) Compensation described in paragraph 

16 (1)(A)(ii)(V) shall not be subject to withholding 

17 pursuant to this section—

18 ‘‘(i) for payment of alimony; or 

19 ‘‘(ii) for payment of child support if 

20 the individual is fewer than 60 days in ar21 rears in payment of the support. 

22 ‘‘(B) Not more than 50 percent of any 

23 payment of compensation described in para24 graph (1)(A)(ii)(V) may be withheld pursuant 

25 to this section.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall take effect on October 1, 2007. 

3 SEC. 309. IMPROVING FEDERAL DEBT COLLECTION PRAC4 TICES. 

5 (a) IN GENERAL.—Section 3716(h)(3) of title 31, 

6 United States Code, is amended to read as follows: 

7 ‘‘(3) In applying this subsection with respect to any 

8 debt owed to a State, other than past due support being 

9 enforced by the State, subsection (c)(3)(A) shall not apply. 

10 Subsection (c)(3)(A) shall apply with respect to past due 

11 support being enforced by the State notwithstanding any 

12 other provision of law, including sections 207 and 

13 1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 

14 1383(d)(1)), section 413(b) of Public law 91–173 (30 

15 U.S.C. 923(b)), and section 14 of the Act of August 29, 

16 1935 (45 U.S.C. 231m).’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 subsection (a) shall take effect on October 1, 2006. 

19 SEC. 310. MAINTENANCE OF TECHNICAL ASSISTANCE 

20 FUNDING. 

21 Section 452(j) (42 U.S.C. 652(j)) is amended by in22 serting ‘‘or the amount appropriated under this paragraph 

23 for fiscal year 2002, whichever is greater,’’ before ‘‘which 

24 shall be available’’. 
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1 SEC. 311. MAINTENANCE OF FEDERAL PARENT LOCATOR 

2 SERVICE FUNDING. 

3 Section 453(o) (42 U.S.C. 653(o)) is amended—

4 (1) in the 1st sentence, by inserting ‘‘or the 

5 amount appropriated under this paragraph for fiscal 

6 year 2002, whichever is greater,’’ before ‘‘which 

7 shall be available’’; and 

8 (2) in the 2nd sentence, by striking ‘‘for each 

9 of fiscal years 1997 through 2001’’. 

10 TITLE IV—CHILD WELFARE 

11 SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEM12 ONSTRATION PROJECTS. 

13 Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is 

14 amended by striking ‘‘2002’’ and inserting ‘‘2010’’. 

15 SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF 

16 WAIVERS. 

17 Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is 

18 amended by striking ‘‘not more than 10’’. 

19 SEC. 403. ELIMINATION OF LIMITATION ON NUMBER OF 

20 STATES THAT MAY BE GRANTED WAIVERS TO 

21 CONDUCT DEMONSTRATION PROJECTS ON 

22 SAME TOPIC. 

23 Section 1130 (42 U.S.C. 1320a–9) is amended by 

24 adding at the end the following: 

25 ‘‘(h) NO LIMIT ON NUMBER OF STATES THAT MAY

26 BE GRANTED WAIVERS TO CONDUCT SAME OR SIMILAR
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1 DEMONSTRATION PROJECTS.—The Secretary shall not 

2 refuse to grant a waiver to a State under this section on 

3 the grounds that a purpose of the waiver or of the dem4 onstration project for which the waiver is necessary would 

5 be the same as or similar to a purpose of another waiver 

6 or project that is or may be conducted under this sec7 tion.’’. 

8 SEC. 404. ELIMINATION OF LIMITATION ON NUMBER OF 

9 WAIVERS THAT MAY BE GRANTED TO A SIN10 GLE STATE FOR DEMONSTRATION PROJECTS. 

11 Section 1130 (42 U.S.C. 1320a–9) is further amend12 ed by adding at the end the following: 

13 ‘‘(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED

14 TO, OR DEMONSTRATION PROJECTS THAT MAY BE CON15 DUCTED BY, A SINGLE STATE.—The Secretary shall not 

16 impose any limit on the number of waivers that may be 

17 granted to a State, or the number of demonstration 

18 projects that a State may be authorized to conduct, under 

19 this section.’’. 

20 SEC. 405. STREAMLINED PROCESS FOR CONSIDERATION OF 

21 AMENDMENTS TO AND EXTENSIONS OF DEM22 ONSTRATION PROJECTS REQUIRING WAIV23 ERS. 

24 Section 1130 (42 U.S.C. 1320a–9) is further amend25 ed by adding at the end the following: 
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1 ‘‘(j) STREAMLINED PROCESS FOR CONSIDERATION

2 OF AMENDMENTS AND EXTENSIONS.—The Secretary 

3 shall develop a streamlined process for consideration of 

4 amendments and extensions proposed by States to dem5 onstration projects conducted under this section.’’. 

6 SEC. 406. AVAILABILITY OF REPORTS. 

7 Section 1130 (42 U.S.C. 1320a–9) is further amend8 ed by adding at the end the following: 

9 ‘‘(k) AVAILABILITY OF REPORTS.—The Secretary 

10 shall make available to any State or other interested party 

11 any report provided to the Secretary under subsection 

12 (f)(2), and any evaluation or report made by the Secretary 

13 with respect to a demonstration project conducted under 

14 this section, with a focus on information that may promote 

15 best practices and program improvements.’’. 

16 SEC. 407. TECHNICAL CORRECTION. 

17 Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is 

18 amended by striking ‘‘422(b)(9)’’ and inserting 

19 ‘‘422(b)(10)’’. 

20 TITLE V—SUPPLEMENTAL 

21 SECURITY INCOME 

22 SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DIS23 ABILITY DETERMINATIONS. 

24 Section 1633 (42 U.S.C. 1383b) is amended by add25 ing at the end the following: 
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1 ‘‘(e)(1) The Commissioner of Social Security shall re2 view determinations, made by State agencies pursuant to 

3 subsection (a) in connection with applications for benefits 

4 under this title on the basis of blindness or disability, that 

5 individuals who have attained 18 years of age are blind 

6 or disabled as of a specified onset date. The Commissioner 

7 of Social Security shall review such a determination before 

8 any action is taken to implement the determination. 

9 ‘‘(2)(A) In carrying out paragraph (1), the Commis10 sioner of Social Security shall review—

11 ‘‘(i) at least 20 percent of all determinations re12 ferred to in paragraph (1) that are made in fiscal 

13 year 2006; 

14 ‘‘(ii) at least 40 percent of all such determina15 tions that are made in fiscal year 2007; and 

16 ‘‘(iii) at least 50 percent of all such determina17 tions that are made in fiscal year 2008 or thereafter. 

18 ‘‘(B) In carrying out subparagraph (A), the Commis19 sioner of Social Security shall, to the extent feasible, select 

20 for review the determinations which the Commissioner of 

21 Social Security identifies as being the most likely to be 

22 incorrect.’’. 
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1 TITLE VI—STATE AND LOCAL 

2 FLEXIBILITY 

3 SEC. 601. PROGRAM COORDINATION DEMONSTRATION 

4 PROJECTS. 

5 (a) PURPOSE.—The purpose of this section is to es6 tablish a program of demonstration projects in a State or 

7 portion of a State to coordinate multiple public assistance, 

8 workforce development, and other programs, for the pur9 pose of supporting working individuals and families, help10 ing families escape welfare dependency, promoting child 

11 well-being, or helping build stronger families, using inno12 vative approaches to strengthen service systems and pro13 vide more coordinated and effective service delivery. 

14 (b) DEFINITIONS.—In this section: 

15 (1) ADMINISTERING SECRETARY.—The term 

16 ‘‘administering Secretary’’ means, with respect to a 

17 qualified program, the head of the Federal agency 

18 responsible for administering the program. 

19 (2) QUALIFIED PROGRAM.—The term ‘‘qualified 

20 program’’ means—

21 (A) a program under part A of title IV of 

22 the Social Security Act; 

23 (B) the program under title XX of such 

24 Act; 
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1 (C) activities funded under title I of the 

2 Workforce Investment Act of 1998, except sub3 title C of such title; 

4 (D) a demonstration project authorized 

5 under section 505 of the Family Support Act of 

6 1988; 

7 (E) activities funded under the Wagner8 Peyser Act; 

9 (F) activities funded under the Adult Edu10 cation and Family Literacy Act; 

11 (G) activities funded under the Child Care 

12 and Development Block Grant Act of 1990; 

13 (H) activities funded under the United 

14 States Housing Act of 1937 (42 U.S.C. 1437 et 

15 seq.), except that such term shall not include—

16 (i) any program for rental assistance 

17 under section 8 of such Act (42 U.S.C. 

18 1437f); and 

19 (ii) the program under section 7 of 

20 such Act (42 U.S.C. 1437e) for desig21 nating public housing for occupancy by 

22 certain populations; 

23 (I) activities funded under title I, II, III, 

24 or IV of the McKinney-Vento Homeless Assist25 ance Act (42 U.S.C. 11301 et seq.); or 
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1 (J) the food stamp program as defined in 

2 section 3(h) of the Food Stamp Act of 1977 (7 

3 U.S.C. 2012(h)). 

4 (c) APPLICATION REQUIREMENTS.—The head of a 

5 State entity or of a sub-State entity administering 2 or 

6 more qualified programs proposed to be included in a dem7 onstration project under this section shall (or, if the 

8 project is proposed to include qualified programs adminis9 tered by 2 or more such entities, the heads of the admin10 istering entities (each of whom shall be considered an ap11 plicant for purposes of this section) shall jointly) submit 

12 to the administering Secretary of each such program an 

13 application that contains the following: 

14 (1) PROGRAMS INCLUDED.—A statement identi15 fying each qualified program to be included in the 

16 project, and describing how the purposes of each 

17 such program will be achieved by the project. 

18 (2) POPULATION SERVED.—A statement identi19 fying the population to be served by the project and 

20 specifying the eligibility criteria to be used. 

21 (3) DESCRIPTION AND JUSTIFICATION.—A de22 tailed description of the project, including—

23 (A) a description of how the project is ex24 pected to improve or enhance achievement of 

25 the purposes of the programs to be included in 
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1 the project, from the standpoint of quality, of 

2 cost-effectiveness, or of both; and 

3 (B) a description of the performance objec4 tives for the project, including any proposed 

5 modifications to the performance measures and 

6 reporting requirements used in the programs. 

7 (4) WAIVERS REQUESTED.—A description of 

8 the statutory and regulatory requirements with re9 spect to which a waiver is requested in order to 

10 carry out the project, and a justification of the need 

11 for each such waiver. 

12 (5) COST NEUTRALITY.—Such information and 

13 assurances as necessary to establish to the satisfac14 tion of the administering Secretary, in consultation 

15 with the Director of the Office of Management and 

16 Budget, that the proposed project is reasonably ex17 pected to meet the applicable cost neutrality require18 ments of subsection (d)(4). 

19 (6) EVALUATION AND REPORTS.—An assurance 

20 that the applicant will conduct ongoing and final 

21 evaluations of the project, and make interim and 

22 final reports to the administering Secretary, at such 

23 times and in such manner as the administering Sec24 retary may require. 
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1 (7) PUBLIC HOUSING AGENCY PLAN.—In the 

2 case of an application proposing a demonstration 

3 project that includes activities referred to in sub4 section (b)(2)(H) of this section—

5 (A) a certification that the applicable an6 nual public housing agency plan of any agency 

7 affected by the project that is approved under 

8 section 5A of the United States Housing Act of 

9 1937 (42 U.S.C. 1437c–1) by the Secretary in10 cludes the information specified in paragraphs 

11 (1) through (4) of this subsection; and 

12 (B) any resident advisory board rec13 ommendations, and other information, relating 

14 to the project that, pursuant to section 

15 5A(e)(2) of the United States Housing Act of 

16 1937 (42 U.S.C. 1437c–1(e)(2), is required to 

17 be included in the public housing agency plan of 

18 any public housing agency affected by the 

19 project. 

20 (8) OTHER INFORMATION AND ASSURANCES.—

21 Such other information and assurances as the ad22 ministering Secretary may require. 

23 (d) APPROVAL OF APPLICATIONS.—

24 (1) IN GENERAL.—The administering Secretary 

25 with respect to a qualified program that is identified 
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1 in an application submitted pursuant to subsection 

2 (c) may approve the application and, except as pro3 vided in paragraph (2), waive any requirement appli4 cable to the program, to the extent consistent with 

5 this section and necessary and appropriate for the 

6 conduct of the demonstration project proposed in the 

7 application, if the administering Secretary deter8 mines that the project—

9 (A) has a reasonable likelihood of achieving 

10 the objectives of the programs to be included in 

11 the project; 

12 (B) may reasonably be expected to meet 

13 the applicable cost neutrality requirements of 

14 paragraph (4), as determined by the Director of 

15 the Office of Management and Budget; and 

16 (C) includes the coordination of 2 or more 

17 qualified programs. 

18 (2) PROVISIONS EXCLUDED FROM WAIVER AU19 THORITY.—A waiver shall not be granted under 

20 paragraph (1)—

21 (A) with respect to any provision of law re22 lating to—

23 (i) civil rights or prohibition of dis24 crimination; 

25 (ii) purposes or goals of any program; 
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1 (iii) maintenance of effort require2 ments; 

3 (iv) health or safety; 

4 (v) labor standards under the Fair 

5 Labor Standards Act of 1938; or 

6 (vi) environmental protection; 

7 (B) with respect to section 241(a) of the 

8 Adult Education and Family Literacy Act; 

9 (C) in the case of a program under the 

10 United States Housing Act of 1937 (42 U.S.C. 

11 1437 et seq.), with respect to any requirement 

12 under section 5A of such Act (42 U.S.C. 

13 1437c–1; relating to public housing agency 

14 plans and resident advisory boards); 

15 (D) in the case of a program under the 

16 Workforce Investment Act, with respect to any 

17 requirement the waiver of which would violate 

18 section 189(i)(4)(A)(i) of such Act; 

19 (E) in the case of the food stamp program 

20 (as defined in section 3(h) of the Food Stamp 

21 Act of 1977 (7 U.S.C. 2012(h)), with respect to 

22 any requirement under—

23 (i) section 6 (if waiving a requirement 

24 under such section would have the effect of 

25 expanding eligibility for the program), 7(b) 
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1 or 16(c) of the Food Stamp Act of 1977 

2 (7 U.S.C. 2011 et seq.); or 

3 (ii) title IV of the Personal Responsi4 bility and Work Opportunity Reconciliation 

5 Act of 1996 (8 U.S.C. 1601 et seq.); 

6 (F) with respect to any requirement that a 

7 State pass through to a sub-State entity part or 

8 all of an amount paid to the State; 

9 (G) if the waiver would waive any funding 

10 restriction or limitation provided in an appro11 priations Act, or would have the effect of trans12 ferring appropriated funds from 1 appropria13 tions account to another; or 

14 (H) except as otherwise provided by stat15 ute, if the waiver would waive any funding re16 striction applicable to a program authorized 

17 under an Act which is not an appropriations 

18 Act (but not including program requirements 

19 such as application procedures, performance 

20 standards, reporting requirements, or eligibility 

21 standards), or would have the effect of transfer22 ring funds from a program for which there is 

23 direct spending (as defined in section 250(c)(8) 

24 of the Balanced Budget and Emergency Deficit 

25 Control Act of 1985) to another program. 
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1 (3) AGREEMENT OF EACH ADMINISTERING SEC2 RETARY REQUIRED.—

3 (A) IN GENERAL.—An applicant may not 

4 conduct a demonstration project under this sec5 tion unless each administering Secretary with 

6 respect to any program proposed to be included 

7 in the project has approved the application to 

8 conduct the project. 

9 (B) AGREEMENT WITH RESPECT TO FUND10 ING AND IMPLEMENTATION.—Before approving 

11 an application to conduct a demonstration 

12 project under this section, an administering 

13 Secretary shall have in place an agreement with 

14 the applicant with respect to the payment of 

15 funds and responsibilities required of the ad16 ministering Secretary with respect to the 

17 project. 

18 (4) COST-NEUTRALITY REQUIREMENT.—

19 (A) GENERAL RULE.—Notwithstanding 

20 any other provision of law (except subparagraph 

21 (B)), the total of the amounts that may be paid 

22 by the Federal Government for a fiscal year 

23 with respect to the programs in the State in 

24 which an entity conducting a demonstration 

25 project under this section is located that are af-
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1 fected by the project shall not exceed the esti2 mated total amount that the Federal Govern3 ment would have paid for the fiscal year with 

4 respect to the programs if the project had not 

5 been conducted, as determined by the Director 

6 of the Office of Management and Budget. 

7 (B) SPECIAL RULE.—If an applicant sub8 mits to the Director of the Office of Manage9 ment and Budget a request to apply the rules 

10 of this subparagraph to the programs in the 

11 State in which the applicant is located that are 

12 affected by a demonstration project proposed in 

13 an application submitted by the applicant pur14 suant to this section, during such period of not 

15 more than 5 consecutive fiscal years in which 

16 the project is in effect, and the Director deter17 mines, on the basis of supporting information 

18 provided by the applicant, to grant the request, 

19 then, notwithstanding any other provision of 

20 law, the total of the amounts that may be paid 

21 by the Federal Government for the period with 

22 respect to the programs shall not exceed the es23 timated total amount that the Federal Govern24 ment would have paid for the period with re-
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1 spect to the programs if the project had not 

2 been conducted. 

3 (5) 90-DAY APPROVAL DEADLINE.—

4 (A) IN GENERAL.—If an administering 

5 Secretary receives an application to conduct a 

6 demonstration project under this section and 

7 does not disapprove the application within 90 

8 days after the receipt, then—

9 (i) the administering Secretary is 

10 deemed to have approved the application 

11 for such period as is requested in the ap12 plication, except to the extent inconsistent 

13 with subsection (e); and 

14 (ii) any waiver requested in the appli15 cation which applies to a qualified program 

16 that is identified in the application and is 

17 administered by the administering Sec18 retary is deemed to be granted, except to 

19 the extent inconsistent with paragraph (2) 

20 or (4) of this subsection. 

21 (B) DEADLINE EXTENDED IF ADDITIONAL

22 INFORMATION IS SOUGHT.—The 90-day period 

23 referred to in subparagraph (A) shall not in24 clude any period that begins with the date the 

25 Secretary requests the applicant to provide ad-
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1 ditional information with respect to the applica2 tion and ends with the date the additional in3 formation is provided. 

4 (e) DURATION OF PROJECTS.—A demonstration 

5 project under this section may be approved for a term of 

6 not more than 5 years. 

7 (f) REPORTS TO CONGRESS.—

8 (1) REPORT ON DISPOSITION OF APPLICA9 TIONS.—Within 90 days after an administering Sec10 retary receives an application submitted pursuant to 

11 this section, the administering Secretary shall sub12 mit to each Committee of the Congress which has 

13 jurisdiction over a qualified program identified in 

14 the application notice of the receipt, a description of 

15 the decision of the administering Secretary with re16 spect to the application, and the reasons for approv17 ing or disapproving the application. 

18 (2) REPORTS ON PROJECTS.—Each admin19 istering Secretary shall provide annually to the Con20 gress a report concerning demonstration projects ap21 proved under this section, including—

22 (A) the projects approved for each appli23 cant; 
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1 (B) the number of waivers granted under 

2 this section, and the specific statutory provi3 sions waived; 

4 (C) how well each project for which a waiv5 er is granted is improving or enhancing pro6 gram achievement from the standpoint of qual7 ity, cost-effectiveness, or both; 

8 (D) how well each project for which a 

9 waiver is granted is meeting the performance 

10 objectives specified in subsection (c)(3)(B); 

11 (E) how each project for which a waiver is 

12 granted is conforming with the cost-neutrality 

13 requirements of subsection (d)(4); and 

14 (F) to the extent the administering Sec15 retary deems appropriate, recommendations for 

16 modification of programs based on outcomes of 

17 the projects. 

18 (g) AMENDMENT TO UNITED STATES HOUSING ACT

19 OF 1937.—Section 5A(d) of the United States Housing 

20 Act of 1937 (42 U.S.C. 1437c–1(d)) is amended—

21 (1) by redesignating paragraph (18) as para22 graph (19); and 

23 (2) by inserting after paragraph (17) the fol24 lowing new paragraph: 
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1 ‘‘(18) PROGRAM COORDINATION DEMONSTRA2 TION PROJECTS.—In the case of an agency that ad3 ministers an activity referred to in section 

4 601(b)(2)(H) of the Personal Responsibility, Work, 

5 and Family Promotion Act of 2005 that, during 

6 such fiscal year, will be included in a demonstration 

7 project under section 601 of such Act, the informa8 tion that is required to be included in the application 

9 for the project pursuant to paragraphs (1) through 

10 (4) of section 601(b) of such Act.’’. 

11 SEC. 602. STATE FOOD ASSISTANCE BLOCK GRANT DEM12 ONSTRATION PROJECT. 

13 The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) 

14 is amended by adding at the end the following: 

15 ‘‘SEC. 28. STATE FOOD ASSISTANCE BLOCK GRANT DEM16 ONSTRATION PROJECT. 

17 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab18 lish a program to make grants to States in accordance 

19 with this section to provide—

20 ‘‘(1) food assistance to needy individuals and 

21 families residing in the State; 

22 ‘‘(2) funds to operate an employment and train23 ing program under subsection (g) for needy individ24 uals under the program; and 
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1 ‘‘(3) funds for administrative costs incurred in 

2 providing the assistance. 

3 ‘‘(b) ELECTION.—

4 ‘‘(1) IN GENERAL.—A State may elect to par5 ticipate in the program established under subsection 

6 (a). 

7 ‘‘(2) ELECTION REVOCABLE.—A State that 

8 elects to participate in the program established 

9 under subsection (a) may subsequently reverse the 

10 election of the State only once thereafter. Following 

11 the reversal, the State shall only be eligible to par12 ticipate in the food stamp program in accordance 

13 with the other sections of this Act and shall not re14 ceive a block grant under this section. 

15 ‘‘(3) PROGRAM EXCLUSIVE.—A State that is 

16 participating in the program established under sub17 section (a) shall not be subject to, or receive any 

18 benefit under, this Act except as provided in this 

19 section. 

20 ‘‘(c) LEAD AGENCY.—

21 ‘‘(1) DESIGNATION.—A State desiring to par22 ticipate in the program established under subsection 

23 (a) shall designate, in an application submitted to 

24 the Secretary under subsection (d)(1), an appro-
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1 priate State agency that complies with paragraph 

2 (2) to act as the lead agency for the State. 

3 ‘‘(2) DUTIES.—The lead agency shall—

4 ‘‘(A) administer, either directly, through 

5 other State agencies, or through local agencies, 

6 the assistance received under this section by the 

7 State; 

8 ‘‘(B) develop the State plan to be sub9 mitted to the Secretary under subsection (d)(1); 

10 and 

11 ‘‘(C) coordinate the provision of food as12 sistance under this section with other Federal, 

13 State, and local programs. 

14 ‘‘(d) APPLICATION AND PLAN.—

15 ‘‘(1) APPLICATION.—To be eligible to receive 

16 assistance under this section, a State shall prepare 

17 and submit to the Secretary an application at such 

18 time, in such manner, and containing such informa19 tion as the Secretary shall by regulation require, in20 cluding—

21 ‘‘(A) an assurance that the State will com22 ply with the requirements of this section; 

23 ‘‘(B) a State plan that meets the require24 ments of paragraph (2); and 
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1 ‘‘(C) an assurance that the State will com2 ply with the requirements of the State plan 

3 under paragraph (2). 

4 ‘‘(2) REQUIREMENTS OF PLAN.—

5 ‘‘(A) LEAD AGENCY.—The State plan shall 

6 identify the lead agency. 

7 ‘‘(B) USE OF BLOCK GRANT FUNDS.—The 

8 State plan shall provide that the State shall use 

9 the amounts provided to the State for each fis10 cal year under this section—

11 ‘‘(i) to provide food assistance to 

12 needy individuals and families residing in 

13 the State, other than residents of institu14 tions who are ineligible for food stamps 

15 under section 3(i); 

16 ‘‘(ii) to administer an employment 

17 and training program under subsection (g) 

18 for needy individuals under the program 

19 and to provide reimbursements to needy 

20 individuals and families as would be al21 lowed under section 16(h)(3); and 

22 ‘‘(iii) to pay administrative costs in23 curred in providing the assistance. 

24 ‘‘(C) ASSISTANCE FOR ENTIRE STATE.—

25 The State plan shall provide that benefits under 
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1 this section shall be available throughout the 

2 entire State. 

3 ‘‘(D) NOTICE AND HEARINGS.—The State 

4 plan shall provide that an individual or family 

5 who applies for, or receives, assistance under 

6 this section shall be provided with notice of, and 

7 an opportunity for a hearing on, any action 

8 under this section that adversely affects the in9 dividual or family. 

10 ‘‘(E) OTHER ASSISTANCE.—

11 ‘‘(i) COORDINATION.—The State plan 

12 may coordinate assistance received under 

13 this section with assistance provided under 

14 the State program funded under part A of 

15 title IV of the Social Security Act (42 

16 U.S.C. 601 et seq.). 

17 ‘‘(ii) PENALTIES.—If an individual or 

18 family is penalized for violating part A of 

19 title IV of the Act, the State plan may re20 duce the amount of assistance provided 

21 under this section or otherwise penalize the 

22 individual or family. 

23 ‘‘(F) ELIGIBILITY LIMITATIONS.—The 

24 State plan shall describe the income and re-
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1 source eligibility limitations that are established 

2 for the receipt of assistance under this section. 

3 ‘‘(G) RECEIVING BENEFITS IN MORE THAN

4 1 JURISDICTION.—The State plan shall estab5 lish a system to verify and otherwise ensure 

6 that no individual or family shall receive bene7 fits under this section in more than 1 jurisdic8 tion within the State. 

9 ‘‘(H) PRIVACY.—The State plan shall pro10 vide for safeguarding and restricting the use 

11 and disclosure of information about any indi12 vidual or family receiving assistance under this 

13 section. 

14 ‘‘(I) OTHER INFORMATION.—The State 

15 plan shall contain such other information as 

16 may be required by the Secretary. 

17 ‘‘(3) APPROVAL OF APPLICATION AND PLAN.—

18 During fiscal years 2006 through 2010, the Sec19 retary may approve the applications and State plans 

20 that satisfy the requirements of this section of not 

21 more than 5 States for a term of not more than 5 

22 years. 

23 ‘‘(e) CONSTRUCTION OF FACILITIES.—No funds 

24 made available under this section shall be expended for 

25 the purchase or improvement of land, or for the purchase, 
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1 construction, or permanent improvement of any building 

2 or facility. 

3 ‘‘(f) BENEFITS FOR ALIENS.—No individual shall be 

4 eligible to receive benefits under a State plan approved 

5 under subsection (d)(3) if the individual is not eligible to 

6 participate in the food stamp program under title IV of 

7 the Personal Responsibility and Work Opportunity Rec8 onciliation Act of 1996 (8 U.S.C. 1601 et seq.). 

9 ‘‘(g) EMPLOYMENT AND TRAINING.—Each State 

10 shall implement an employment and training program for 

11 needy individuals under the program. 

12 ‘‘(h) ENFORCEMENT.—

13 ‘‘(1) REVIEW OF COMPLIANCE WITH STATE

14 PLAN.—The Secretary shall review and monitor 

15 State compliance with this section and the State 

16 plan approved under subsection (d)(3). 

17 ‘‘(2) NONCOMPLIANCE.—

18 ‘‘(A) IN GENERAL.—If the Secretary, after 

19 reasonable notice to a State and opportunity for 

20 a hearing, finds that—

21 ‘‘(i) there has been a failure by the 

22 State to comply substantially with any pro23 vision or requirement set forth in the State 

24 plan approved under subsection (d)(3); or 
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1 ‘‘(ii) in the operation of any program 

2 or activity for which assistance is provided 

3 under this section, there is a failure by the 

4 State to comply substantially with any pro5 vision of this section, the Secretary shall 

6 notify the State of the finding and that no 

7 further payments will be made to the State 

8 under this section (or, in the case of non9 compliance in the operation of a program 

10 or activity, that no further payments to the 

11 State will be made with respect to the pro12 gram or activity) until the Secretary is sat13 isfied that there is no longer any failure to 

14 comply or that the noncompliance will be 

15 promptly corrected. 

16 ‘‘(B) OTHER SANCTIONS.—In the case of a 

17 finding of noncompliance made pursuant to 

18 subparagraph (A), the Secretary may, in addi19 tion to, or in lieu of, imposing the sanctions de20 scribed in subparagraph (A), impose other ap21 propriate sanctions, including recoupment of 

22 money improperly expended for purposes pro23 hibited or not authorized by this section and 

24 disqualification from the receipt of financial as25 sistance under this section. 
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1 ‘‘(C) NOTICE.—The notice required under 

2 subparagraph (A) shall include a specific identi3 fication of any additional sanction being im4 posed under subparagraph (B). 

5 ‘‘(3) ISSUANCE OF REGULATIONS.—The Sec6 retary shall establish by regulation procedures for—

7 ‘‘(A) receiving, processing, and deter8 mining the validity of complaints concerning 

9 any failure of a State to comply with the State 

10 plan or any requirement of this section; and 

11 ‘‘(B) imposing sanctions under this sec12 tion. 

13 ‘‘(i) PAYMENTS.—

14 ‘‘(1) IN GENERAL.—For each fiscal year, the 

15 Secretary shall pay to a State that has an applica16 tion approved by the Secretary under subsection 

17 (d)(3) an amount that is equal to the allotment of 

18 the State under subsection (l)(2) for the fiscal year. 

19 ‘‘(2) METHOD OF PAYMENT.—The Secretary 

20 shall make payments to a State for a fiscal year 

21 under this section by issuing 1 or more letters of 

22 credit for the fiscal year, with necessary adjustments 

23 on account of overpayments or underpayments, as 

24 determined by the Secretary. 

25 ‘‘(3) SPENDING OF FUNDS BY STATE.—
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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), payments to a State from an 

3 allotment under subsection (l)(2) for a fiscal 

4 year may be expended by the State only in the 

5 fiscal year. 

6 ‘‘(B) CARRYOVER.—The State may reserve 

7 up to 10 percent of an allotment under sub8 section (l)(2) for a fiscal year to provide assist9 ance under this section in subsequent fiscal 

10 years, except that the reserved funds may not 

11 exceed 30 percent of the total allotment re12 ceived under this section for a fiscal year. 

13 ‘‘(4) PROVISION OF FOOD ASSISTANCE.—A 

14 State may provide food assistance under this section 

15 in any manner determined appropriate by the State 

16 to provide food assistance to needy individuals and 

17 families in the State, such as electronic benefits 

18 transfer limited to food purchases, coupons limited 

19 to food purchases, or direct provision of commod20 ities. 

21 ‘‘(5) DEFINITION OF FOOD ASSISTANCE.—In 

22 this section, the term ‘food assistance’ means assist23 ance that may be used only to obtain food, as de24 fined in section 3(g). 

25 ‘‘(j) AUDITS.—
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1 ‘‘(1) REQUIREMENT.—After the close of each 

2 fiscal year, a State shall arrange for an audit of the 

3 expenditures of the State during the program period 

4 from amounts received under this section. 

5 ‘‘(2) INDEPENDENT AUDITOR.—An audit under 

6 this section shall be conducted by an entity that is 

7 independent of any agency administering activities 

8 that receive assistance under this section and be in 

9 accordance with generally accepted auditing prin10 ciples. 

11 ‘‘(3) PAYMENT ACCURACY.—Each annual audit 

12 under this section shall include an audit of payment 

13 accuracy under this section that shall be based on a 

14 statistically valid sample of the caseload in the 

15 State. 

16 ‘‘(4) SUBMISSION.—Not later than 30 days 

17 after the completion of an audit under this section, 

18 the State shall submit a copy of the audit to the leg19 islature of the State and to the Secretary. 

20 ‘‘(5) REPAYMENT OF AMOUNTS.—Each State 

21 shall repay to the United States any amounts deter22 mined through an audit under this section to have 

23 not been expended in accordance with this section or 

24 to have not been expended in accordance with the 

25 State plan, or the Secretary may offset the amounts 
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1 against any other amount paid to the State under 

2 this section. 

3 ‘‘(k) NONDISCRIMINATION.—

4 ‘‘(1) IN GENERAL.—The Secretary shall not 

5 provide financial assistance for any program, 

6 project, or activity under this section if any person 

7 with responsibilities for the operation of the pro8 gram, project, or activity discriminates with respect 

9 to the program, project, or activity because of race, 

10 religion, color, national origin, sex, or disability. 

11 ‘‘(2) ENFORCEMENT.—The powers, remedies, 

12 and procedures set forth in title VI of the Civil 

13 Rights Act of 1964 (42 U.S.C. 2000d et seq.) may 

14 be used by the Secretary to enforce paragraph (1). 

15 ‘‘(l) ALLOTMENTS.—

16 ‘‘(1) DEFINITION OF STATE.—In this section, 

17 the term ’State’ means each of the 50 States, the 

18 District of Columbia, Guam, and the Virgin Islands 

19 of the United States. 

20 ‘‘(2) STATE ALLOTMENT.—

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

22 subparagraph (B), from the amounts made 

23 available under section 18 of this Act for each 

24 fiscal year, the Secretary shall allot to each 

25 State participating in the program established 
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1 under subsection (a) an amount that is equal to 

2 the sum of—

3 ‘‘(i) the greater of, as determined by 

4 the Secretary—

5 ‘‘(I) the total dollar value of all 

6 benefits issued under the food stamp 

7 program established under this Act by 

8 the State during fiscal year 2005; or 

9 ‘‘(II) the average per fiscal year 

10 of the total dollar value of all benefits 

11 issued under the food stamp program 

12 by the State during each of fiscal 

13 years 2003 through 2005; and 

14 ‘‘(ii) the greater of, as determined by 

15 the Secretary—

16 ‘‘(I) the total amount received by 

17 the State for administrative costs and 

18 the employment and training program 

19 under subsections (a) and (h), respec20 tively, of section 16 of this Act for fis21 cal year 2005; or 

22 ‘‘(II) the average per fiscal year 

23 of the total amount received by the 

24 State for administrative costs and the 

25 employment and training program 
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1 under subsections (a) and (h), respec2 tively, of section 16 of this Act for 

3 each of fiscal years 2003 through 

4 2005. 

5 ‘‘(B) INSUFFICIENT FUNDS.—If the Sec6 retary finds that the total amount of allotments 

7 to which States would otherwise be entitled for 

8 a fiscal year under subparagraph (A) will ex9 ceed the amount of funds that will be made 

10 available to provide the allotments for the fiscal 

11 year, the Secretary shall reduce the allotments 

12 made to States under this subsection, on a pro 

13 rata basis, to the extent necessary to allot 

14 under this subsection a total amount that is 

15 equal to the funds that will be made available.’’. 

16 TITLE VII—ABSTINENCE 

17 EDUCATION 

18 SEC. 701. EXTENSION OF ABSTINENCE EDUCATION PRO19 GRAM. 

20 (a) EXTENSION OF APPROPRIATIONS.—

21 (1) IN GENERAL.—Section 510(d) (42 U.S.C. 

22 710(d)) is amended in the first sentence by inserting 

23 before the period the following: ‘‘and for each of the 

24 fiscal years 2006 through 2010’’. 
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1 (2) ADDITIONAL FUNDS FOR FISCAL YEAR

2 2005.—

3 (A) ADDITIONAL FUNDS.—Activities au4 thorized by section 510 of the Social Security 

5 Act shall continue through September 30, 2005, 

6 in the manner authorized for fiscal year 2004, 

7 and out of any money in the Treasury of the 

8 United States not otherwise appropriated, there 

9 are hereby appropriated such sums as may be 

10 necessary for such purpose, in addition to other 

11 amounts appropriated for such purpose for fis12 cal year 2005. Grants and payments may be 

13 made pursuant to this authority through the 

14 fourth quarter of fiscal year 2005 at the level 

15 provided for such activities through the fourth 

16 quarter of fiscal year 2004. 

17 (B) EFFECTIVE DATE.—Subparagraph (A) 

18 takes effect upon the date of the enactment of 

19 this Act. 

20 (b) ALLOTMENT OF FUNDS.—Section 510(a) (42 

21 U.S.C. 710(a)) is amended—

22 (1) in the matter preceding paragraph (1), by 

23 striking ‘‘an application for the fiscal year under 

24 section 505(a)’’ and inserting ‘‘, for the fiscal year, 

25 an application under section 505(a), and an applica-
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1 tion under this section (in such form and meeting 

2 such terms and conditions as determined appropriate 

3 by the Secretary),’’; and 

4 (2) in paragraph (2), to read as follows: 

5 ‘‘(2) the percentage that would be determined 

6 for the State under section 502(c)(1)(B)(ii) if the 

7 calculation under such section took into consider8 ation only those States that transmitted both such 

9 applications for such fiscal year.’’. 

10 (c) REALLOTMENT OF FUNDS.—Section 510 (42 

11 U.S.C. 710(a)) is amended by adding at the end the fol12 lowing new subsection: 

13 ‘‘(e)(1) With respect to allotments under subsection 

14 (a) for fiscal year 2006 and subsequent fiscal years, the 

15 amount of any allotment to a State for a fiscal year that 

16 the Secretary determines will not be required to carry out 

17 a program under this section during such fiscal year or 

18 the succeeding fiscal year shall be available for reallotment 

19 from time to time during such fiscal years on such dates 

20 as the Secretary may fix, to other States that the Sec21 retary determines—

22 ‘‘(A) require amounts in excess of amounts pre23 viously allotted under subsection (a) to carry out a 

24 program under this section; and 
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1 ‘‘(B) will use such excess amounts during such 

2 fiscal years. 

3 ‘‘(2) Reallotments under paragraph (1) shall be made 

4 on the basis of such States’ applications under this sec5 tion, after taking into consideration the population of low6 income children in each such State as compared with the 

7 population of low-income children in all such States with 

8 respect to which a determination under paragraph (1) has 

9 been made by the Secretary. 

10 ‘‘(3) Any amount reallotted under paragraph (1) to 

11 a State is deemed to be part of its allotment under sub12 section (a).’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall be effective with respect to the program 

15 under section 510 of the Social Security Act for fiscal 

16 years 2006 and succeeding fiscal years. 

17 TITLE VIII—TRANSITIONAL 

18 MEDICAL ASSISTANCE 

19 SEC. 801. EXTENSION OF MEDICAID TRANSITIONAL MED20 ICAL ASSISTANCE PROGRAM THROUGH FIS21 CAL YEAR 2006. 

22 (a) IN GENERAL.—Section 1925(f) (42 U.S.C. 

23 1396r–6(f)) is amended by striking ‘‘2003’’ and inserting 

24 ‘‘2006’’. 
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1 (b) CONFORMING AMENDMENT.—Section 

2 1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B)) is amended by 

3 striking ‘‘September 30, 2003’’ and inserting ‘‘the last 

4 date (if any) on which section 1925 applies under sub5 section (f) of that section’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall take effect on April 1, 2005. 

8 SEC. 802. ADJUSTMENT TO PAYMENTS FOR MEDICAID AD9 MINISTRATIVE COSTS TO PREVENT DUPLICA10 TIVE PAYMENTS AND TO FUND EXTENSION 

11 OF TRANSITIONAL MEDICAL ASSISTANCE. 

12 (a) IN GENERAL.—Section 1903 (42 U.S.C. 1396b) 

13 is amended—

14 (1) in subsection (a)(7), by striking ‘‘section 

15 1919(g)(3)(B)’’ and inserting ‘‘subsection (x) and 

16 section 1919(g)(3)(C)’’; and 

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

18 ‘‘(x) ADJUSTMENTS TO PAYMENTS FOR ADMINISTRA19 TIVE COSTS TO FUND EXTENSION OF TRANSITIONAL

20 MEDICAL ASSISTANCE.—

21 ‘‘(1) REDUCTIONS IN PAYMENTS FOR ADMINIS22 TRATIVE COSTS.—Effective for each of the last 2 

23 calendar quarters in fiscal year 2005 and for each 

24 calendar quarter in fiscal year 2006, the Secretary 

25 shall reduce the amount paid under subsection 
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1 (a)(7) to each State by an amount equal to 45 per2 cent for calendar quarters in fiscal year 2005, and 

3 80 percent for calendar quarters in fiscal year 2006, 

4 of one-quarter of the annualized amount determined 

5 for the medicaid program under section 16(k)(2)(B) 

6 of the Food Stamp Act of 1977 (7 U.S.C. 

7 2025(k)(2)(B)). 

8 ‘‘(2) ALLOCATION OF ADMINISTRATIVE

9 COSTS.—None of the funds or expenditures de10 scribed in section 16(k)(5)(B) of the Food Stamp 

11 Act of 1977 (7 U.S.C. 2025(k)(5)(B)) may be used 

12 to pay for costs—

13 ‘‘(A) eligible for reimbursement under sub14 section (a)(7) (or costs that would have been el15 igible for reimbursement but for this sub16 section); and 

17 ‘‘(B) allocated for reimbursement to the 

18 program under this title under a plan submitted 

19 by a State to the Secretary to allocate adminis20 trative costs for public assistance programs; 

21 except that, for purposes of subparagraph (A), the 

22 reference in clause (iii) of that section to ‘subsection 

23 (a)’ is deemed a reference to subsection (a)(7) and 

24 clause (iv)(II) of that section shall be applied as if 
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1 ‘medicaid program’ were substituted for ‘food stamp 

2 program’.’’. 

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

4 subsection (a) shall take effect on April 1, 2005. 

5 TITLE IX—EFFECTIVE DATE 

6 SEC. 901. EFFECTIVE DATE. 

7 (a) IN GENERAL.—Except as otherwise provided in 

8 this Act, this Act and the amendments made by this Act 

9 shall take effect on October 1, 2005. 

10 (b) EXCEPTION.—In the case of a State plan under 

11 part A or D of title IV of the Social Security Act which 

12 the Secretary determines requires State legislation in 

13 order for the plan to meet the additional requirements im14 posed by the amendments made by this Act, the effective 

15 date of the amendments imposing the additional require16 ments shall be 3 months after the first day of the first 

17 calendar quarter beginning after the close of the first reg18 ular session of the State legislature that begins after the 

19 date of the enactment of this Act. For purposes of the 

20 preceding sentence, in the case of a State that has a 2-

21 year legislative session, each year of the session shall be 

22 considered to be a separate regular session of the State 

23 legislature.

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