I 

111TH CONGRESS 

2D SESSION H. R. 4976 

To amend the Internal Revenue Code of 1986 to regulate and tax Internet 

gambling. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 25, 2010 

Mr. MCDERMOTT (for himself, Mr. LARSON of Connecticut, Mr. FRANK of 

Massachusetts, and Mr. BLUMENAUER) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, 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 amend the Internal Revenue Code of 1986 to regulate 

and tax Internet gambling. 

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

3 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Internet Gambling Regulation and Tax Enforcement Act 

6 of 2010’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amendVerDate Nov 24 2008 06:47 Mar 27, 2010 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4976.IH H4976

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1 ment is expressed in terms of an amendment of a section 

2 or other provision, the reference shall be considered to be 

3 made to a section or other provision of the Internal Rev4 enue Code of 1986. 

5 SEC. 2. TAX ON INTERNET GAMBLING. 

6 (a) IN GENERAL.—Chapter 36 (relating to certain 

7 other excise taxes) is amended by adding at the end the 

8 following new subchapter: 

9 ‘‘Subchapter E—Internet Gambling 

‘‘Sec. 4491. Imposition of Internet gambling license fee. 

‘‘Sec. 4492. Record requirements. 

‘‘Sec. 4493. Elective State and Indian tribal government online gambling fee. 

10 ‘‘SEC. 4491. IMPOSITION OF INTERNET GAMBLING LICENSE 

11 FEE. 

12 ‘‘(a) FEDERAL FEE.—Each licensee within the mean13 ing of section 5382 of title 31, United States Code, (here14 after in this subchapter referred to as ‘licensee’) shall be 

15 required to pay an Internet gambling license fee by the 

16 end of each calendar month in an amount equal to two 

17 percent of all funds deposited by customers during the 

18 preceding month into an account maintained by that li19 censee or any agent of that licensee that can be used for 

20 the purpose of placing a bet or wager as defined in section 

21 5362(1) of title 31, United States Code. 

22 ‘‘(b) DEPOSITS.—Deposits made by or on behalf of 

23 a licensee of Internet gambling winnings or returns of 

24 funds by or on behalf of a licensee to the account of a 


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1 customer shall not be treated as a deposit for purposes 

2 of this section. 

3 ‘‘(c) PERSONS LIABLE FOR FEE.—The Internet gam4 bling license fee shall be the direct and exclusive obligation 

5 of the Internet gambling operator and may not be de6 ducted from the amounts available as deposits to the per7 son placing a bet. Notwithstanding the foregoing, any per8 son making a deposit for the purpose of placing a bet or 

9 wager with a person who is required but has failed to ob10 tain a license pursuant to subchapter V of chapter 53 of 

11 title 31, United States Code, shall be liable for and pay 

12 the fee under this subchapter on all such deposits, but 

13 such liability shall not excuse any failure to pay the fee 

14 on the part of the person who is required but has failed 

15 to obtain such license. 

16 ‘‘(d) UNAUTHORIZED BETS OR WAGERS.—There is 

17 hereby imposed a fee in an amount equal to 50 percent 

18 of all funds deposited into an account that can be used 

19 for placing a bet or wager within the meaning of Section 

20 5362(1) of title 31, United States Code, with any person 

21 that is not authorized pursuant to section 5382 of that 

22 title. Such tax is due by the end of each calendar month 

23 with respect to deposits during the preceding month. 

24 ‘‘(e) DISPOSITION.—Amounts paid as Internet gam25 bling license fees or on unauthorized bets or wagers under 


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1 this section shall be deposited in the general fund of the 

2 Treasury and treated as revenue. 

3 ‘‘(f) ADMINISTRATIVE PROVISIONS.—Except to the 

4 extent the Secretary shall by regulations prescribe, the 

5 fees imposed by this section shall be subject to the admin6 istrative provisions of this title applicable to excise taxes 

7 imposed by chapter 35. 

8 ‘‘SEC. 4492. RECORD REQUIREMENTS. 

9 ‘‘Each person liable for fees under this subchapter, 

10 except for a person making a deposit who is liable for fees 

11 pursuant to section 4491(e), shall keep a daily record 

12 showing deposits as defined in this subchapter, in addition 

13 to all other records required pursuant to section 6001(a). 

14 ‘‘SEC. 4493. ELECTIVE STATE AND INDIAN TRIBAL GOVERN15 MENT ONLINE GAMBLING FEE. 

16 ‘‘(a) IN GENERAL.— 

17 ‘‘(1) PAYMENT OF STATE AND INDIAN TRIBAL

18 GOVERNMENT FEE.—On a monthly basis, each li19 censee shall pay to each qualified State and each 

20 qualified Indian tribal government an amount equal 

21 to the monthly pro rata State and Indian tribal gov22 ernment online gambling fee amount. 

23 ‘‘(2) MONTHLY PRO RATA ONLINE GAMBLING

24 FEE AMOUNT.—For purposes of this section, with 

25 respect to a qualified State and a qualified Indian 


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1 tribal government for any calendar month, the 

2 monthly pro rata online gambling fee amount is the 

3 amount of the fees described in subsection (b) re4 ceived with respect to such calendar month that are 

5 attributable to deposits for online wagers made by 

6 persons residing within the jurisdiction of such State 

7 or Indian tribal government. 

8 ‘‘(3) QUALIFIED STATE; QUALIFIED INDIAN

9 TRIBAL GOVERNMENT.— 

10 ‘‘(A) IN GENERAL.—For purposes of this 

11 section, the terms ‘qualified State’ and ‘quali12 fied Indian tribal government’ mean a State or 

13 an Indian tribal government, respectively, that 

14 has not elected (by notice provided by the Gov15 ernor, principal chief, or other chief executive 

16 officer and in such form and manner as the 

17 Secretary may prescribe) to be excluded from 

18 the receipt of funds under this section. 

19 ‘‘(B) STATE ELECTION NOT TO AFFECT

20 TRIBAL ELECTION.—An election by a State 

21 under subparagraph (A) to be excluded from 

22 the receipt of funds under this section shall not 

23 constitute an election to be so excluded on be24 half of any Indian tribe located within or parVerDate Nov 24 2008 06:47 Mar 27, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4976.IH H4976

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1 tially within the geographic boundaries of such 

2 State. 

3 ‘‘(C) APPLICABILITY OF ELECTION.—An 

4 election made under subparagraph (A) shall be 

5 effective— 

6 ‘‘(i) upon receipt by the Secretary, if 

7 such election is received within 90 days of 

8 the date of the enactment of the section; 

9 and 

10 ‘‘(ii) in any other case, on the first 

11 January 1 that occurs at least 60 days 

12 after the later of— 

13 ‘‘(I) the receipt of such election 

14 by the Secretary; or 

15 ‘‘(II) the effective date specified 

16 in such election. 

17 ‘‘(D) STATE.—The term ‘State’ means any 

18 State, the District of Columbia, or any com19 monwealth, territory or other possession of the 

20 United States. 

21 ‘‘(E) INDIAN TRIBAL GOVERNMENT.—The 

22 term ‘Indian tribal government’ means the gov23 ernment of an Indian tribe (within the meaning 

24 of section 4 of the Indian Gaming Regulatory 

25 Act). 


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1 ‘‘(4) TIME OF PAYMENTS.—The payment made 

2 under this subsection with respect to any calendar 

3 month shall be made not later than the 11th day of 

4 the succeeding calendar month. 

5 ‘‘(b) STATE AND INDIAN TRIBAL GOVERNMENT ON6 LINE GAMBLING FEE.—The State and Indian tribal gov7 ernment online gambling fee shall be an amount equal to 

8 6 percent of all deposited funds deposited by customers 

9 residing in each State or area subject to the jurisdiction 

10 of an Indian tribal government. 

11 ‘‘(c) EFFECT OF ACCEPTANCE OF FEE.—Acceptance 

12 by a State or Indian tribal government of the State and 

13 Indian tribal government online gambling fee shall relieve 

14 licensees from the obligation to pay any other fee or tax 

15 to the State or Indian tribal government relating to its 

16 online gambling services, except for— 

17 ‘‘(1) applicable State individual and corporate 

18 income taxes, which shall be unaffected by the elec19 tion, and 

20 ‘‘(2) any fees associated with a licensee’s choice 

21 to rely on a State or Indian tribal regulatory body 

22 certification of suitability in connection with a Fed23 eral online gambling licensing application.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sub2 chapters for chapter 36 is amended by adding at the end 

3 the following new item: 

‘‘SUBCHAPTER E—INTERNET GAMBLING

‘‘Sec. 4491. Imposition of Internet gambling license fee. 

‘‘Sec. 4492. Record requirements. 

‘‘Sec. 4493. Elective State and Indian tribal government online gambling fee.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to bets or wagers placed after the 

6 date of the enactment of this Act. 

7 SEC. 3. LICENSEE INFORMATION REPORTING. 

8 (a) IN GENERAL.—Subpart A of part III of sub9 chapter A of chapter 61 (relating to information con10 cerning persons subject to special provisions) is amended 

11 by adding at the end the following new section: 

12 ‘‘SEC. 6050X. RETURNS RELATING TO INTERNET GAMBLING. 

13 ‘‘(a) REQUIREMENT.—Every person who is a licensee 

14 (within the meaning of section 5382(3) of title 31, United 

15 States Code) or who otherwise is engaged in the business 

16 of accepting any bet or wager within the meaning of sec17 tion 5362(1) of title 31, United States Code, during a tax18 able year shall furnish, at such time and in such manner 

19 as the Secretary shall by regulations prescribe, the infor20 mation described in subsection (b), and such person shall 

21 maintain (in the location, in the manner, and to the extent 

22 prescribed in regulations) such records as may be appro23 priate to the information described in subsection (b). 


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1 ‘‘(b) REQUIRED INFORMATION.—For purposes of 

2 subsection (a), the information described is set forth 

3 below, which information may be modified as appropriate 

4 by the Secretary through regulation— 

5 ‘‘(1) the name, address, and TIN of the licensee 

6 or other person engaged in the business of accepting 

7 any bet or wager, 

8 ‘‘(2) the name, address, and TIN of each per9 son placing a bet or wager with the licensee or other 

10 person engaged in the business of accepting any bet 

11 or wager during the calendar year, 

12 ‘‘(3) the gross winnings, gross wagers, and 

13 gross losses for the calendar year of each person 

14 placing a bet or wager with the licensee or other per15 son engaged in the business of accepting any bet or 

16 wager during the year, 

17 ‘‘(4) the net Internet gambling winnings for 

18 each such person for the calendar year, 

19 ‘‘(5) the amount of tax withheld with respect to 

20 each such person for the calendar year, 

21 ‘‘(6) beginning and end-of-year account bal22 ances for each such person for the calendar year, 

23 and 

24 ‘‘(7) amounts deposited and withdrawn by each 

25 such person during the calendar year. 


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1 ‘‘(c) STATEMENT TO BE FURNISHED TO PERSONS

2 WITH RESPECT TO WHOM INFORMATION IS REQUIRED.— 

3 Every person required to make a return under subsection 

4 (a) shall furnish to each person whose name is required 

5 to be set forth in such return by reason of placing a bet 

6 or wager a written statement showing— 

7 ‘‘(1) the name, address, and phone number of 

8 the information contact of the person required to 

9 make such return, and 

10 ‘‘(2) the information required to be shown on 

11 such return with respect to each person whose name 

12 is required to be set forth in such return. 

13 The written statement required under the preceding sen14 tence shall be furnished to the person on or before Janu15 ary 31 of the year following the calendar year for which 

16 the return under subsection (a) was required to be made. 

17 ‘‘(d) DEFINITIONS.— 

18 ‘‘(1) NET INTERNET GAMBLING WINNINGS.— 

19 The term ‘net Internet gambling winnings’ means 

20 gross winnings from wagers placed over the Internet 

21 with a person required to be licensed under section 

22 5382 of chapter 53 of title 31, United States Code, 

23 less the amounts wagered. 

24 ‘‘(2) INTERNET; WAGER.—The terms ‘Internet’ 

25 and ‘wager’ shall have the respective meanings given 


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1 such terms by section 5362 of chapter 53 of title 31, 

2 United States Code.’’. 

3 (b) The table of sections for subpart B of part III 

4 of subchapter A of chapter 61 is amended by inserting 

5 after the item relating to section 6050W the following new 

6 item: 

‘‘Sec. 6050X. Returns relating to internet gambling.’’. 

7 SEC. 4. WITHHOLDING FROM CERTAIN GAMBLING 

8 WINNINGS. 

9 (a) NET INTERNET GAMBLING WINNINGS.—Para10 graph (3) of section 3406(b) (relating to other reportable 

11 payments for purposes of backup withholding) is amend12 ed— 

13 (1) by striking ‘‘or’’ in subparagraph (E); 

14 (2) by striking ‘‘.’’ and inserting ‘‘, or’’ at the 

15 end of subparagraph (F); and 

16 (3) by adding at the end thereof the following 

17 new subparagraph: 

18 ‘‘(G) section 6050X(b)(4) (relating to net 

19 Internet gambling winnings).’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to bets or wagers placed after the 

22 date of the enactment of this Act. 


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1 SEC. 5. WITHHOLDING OF TAX ON NONRESIDENT ALIENS. 

2 (a) TAX ON NONRESIDENT ALIEN INDIVIDUALS.— 

3 Paragraph (1) of section 871(a) (relating to income not 

4 connected with United States business) is amended— 

5 (1) by striking ‘‘and’’ at the end of subpara6 graph (C), 

7 (2) by inserting ‘‘and’’ at the end of subpara8 graph (D), and 

9 (3) by inserting after subparagraph (D) the fol10 lowing new subparagraph: 

11 ‘‘(E) the gross amount of winnings from 

12 each wager placed over the Internet with a per13 son required to be licensed under section 5382 

14 of chapter 53 of title 31, United States Code 

15 (as such terms are defined in section 

16 6050X(d)(2)),’’. 

17 (b) EXEMPTION FOR CERTAIN GAMBLING

18 WINNINGS.—Section 871(j) (relating to exemption for cer19 tain gambling winnings) is amended by inserting before 

20 the period at the end the following: ‘‘or to any bets or 

21 wagers placed over the Internet (as such terms are defined 

22 in section 6050X(d)(2))’’. 

23 (c) WITHHOLDING OF TAX ON NONRESIDENT ALIEN

24 INDIVIDUALS.—The first sentence of subsection (b) of sec25 tion 1441 (relating to withholding of tax on nonresident 

26 aliens) is amended by inserting after ‘‘gains subject to tax 


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1 under section 871(a)(1)(D),’’ the following: ‘‘the gross 

2 amount of winnings from wagers placed over the Internet 

3 described in section 871(a)(1)(E),’’. 

4 (d) SOURCE OF INTERNET GAMBLING WINNINGS.— 

5 Subsection (a) of section 861 is amending by inserting at 

6 the end thereof the following new paragraph: 

7 ‘‘(9) INTERNET GAMBLING WINNINGS.—Any 

8 Internet gambling winnings received from a licensee 

9 within the meaning of section 5382(3) of title 31, 

10 United States Code.’’. 

11 (e) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to bets or wagers placed after the 

13 date of the enactment of this Act. 

14 SEC. 6. WAGER TAX APPLICABLE TO FEDERAL ONLINE 

15 GAMBLING ACTIVITIES. 

16 (a) IN GENERAL.—Subsection (a) of section 4401 is 

17 amended to read as follows: 

18 ‘‘(a) WAGERS.— 

19 ‘‘(1) AUTHORIZED WAGERS.—There shall be 

20 imposed on any wager authorized under Federal law 

21 or the law of the State in which accepted an excise 

22 tax equal to 0.25 percent of the amount of such 

23 wager. 

24 ‘‘(2) UNAUTHORIZED WAGERS.—There shall be 

25 imposed on any wager not described in paragraph 


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1 (1) an excise tax equal to 2 percent of the amount 

2 of such wager.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall apply to wagers made after December 

5 31, 2010. 

6 SEC. 7. NO EXCLUSIONS UNDER FEDERAL WAGER TAX FOR 

7 ONLINE GAMBLING ACTIVITIES. 

8 (a) IN GENERAL.—Section 4402 is amended to read 

9 as follows: 

10 ‘‘SEC. 4402. EXEMPTIONS. 

11 ‘‘(a) IN GENERAL.—No tax shall be imposed by this 

12 subchapter— 

13 ‘‘(1) on any wager placed with, or on any wager 

14 placed in a wagering pool conducted by, a pari15 mutuel wagering enterprise licensed under State law 

16 and that is not carried out online; 

17 ‘‘(2) on any wager placed in a coin-operated de18 vice (as defined in section 4462 as in effect for years 

19 beginning before July 1, 1980), or on any amount 

20 paid, in lieu of inserting a coin, token, or similar ob21 ject, to operate a device described in section 4462 

22 (a)(2) (as so in effect), and that is not carried out 

23 online; and 

24 ‘‘(3) on any wager placed in a sweepstakes, wa25 gering pool, or lottery which is conducted by an 


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1 agency of a State acting under authority of State 

2 law, but only if such wager is placed with the State 

3 agency conducting such sweepstakes, wagering pool, 

4 or lottery, or with its authorized employees or 

5 agents, and is not carried out online. 

6 ‘‘(b) ONLINE GAMBLING ACTIVITIES.—All online 

7 gambling activities conducted pursuant to a Federal li8 cense shall be subject to the wagering tax set forth in sec9 tion 4401.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 subsection (a) shall apply to wagers made after December 

12 31, 2010. 

13 SEC. 8. TERRITORIAL EXTENT. 

14 (a) IN GENERAL.—Paragraph (2) of section 4404 is 

15 amended to read as follows: 

16 ‘‘(2) placed within the United States, or any 

17 Commonwealth, territory, or possession thereof, by a 

18 person who is a United States citizen or resident.’’. 

19 (b) EFFECTIVE DATE.—The amendment made by 

20 subsection (a) shall apply to wagers made after December 

21 31, 2010. 

22 SEC. 9. AMERICAN HERITAGE PROGRAM. 

23 (a) IMPLEMENTATION OF PROGRAM.—From funds 

24 appropriated to the American Heritage Block Grant Fund 

25 for a fiscal year, the Secretary of the Treasury shall make 


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1 grants to eligible States to carry out an American Herit2 age Program through State arts agencies. 

3 (b) ALLOTMENT OF FUNDS.—Funds allotted for a 

4 fiscal year shall be allotted among eligible States in the 

5 same proportion as funds are allotted among the States 

6 under section 5(g)(3) of the National Foundation on the 

7 Arts and the Humanities Act of 1965 (20 U.S.C. 

8 954(g)(3)). 

9 (c) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi10 ble to receive a grant under subsection (a) for a fiscal 

11 year, a State shall submit to the Secretary an application 

12 in such form, and containing such information and assur13 ances, as the Secretary may require by rule, including as14 surances that— 

15 (1) not more than 80 percent of the cost of any 

16 qualified activity carried out under this section shall 

17 be paid with such grant, and 

18 (2) not more that 20 percent of such grant may 

19 be expended for administrative costs. 

20 (d) DEFINITIONS.—For purposes of this section— 

21 (1) the term ‘‘American Heritage Program’’ 

22 means a program carried out by a State that pro23 vides qualified activities directly, or by contract with 

24 nonprofit organizations (including community-based 


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1 organizations) or units of local government, for all 

2 the people and communities in the State, 

3 (2) the term ‘‘Secretary’’ means the Secretary 

4 of the Treasury, 

5 (3) the term ‘‘State’’ has the meaning given 

6 such term in section 4 of the National Foundation 

7 on the Arts and the Humanities Act of 1965 (20 

8 U.S.C. 953), 

9 (4) the term ‘‘State arts agency’’ has the same 

10 meaning given such term as used in the National 

11 Foundation on the Arts and the Humanities Act of 

12 1965 (20 U.S.C. 951 et seq.), and 

13 (5) the term ‘‘qualified activities’’ means activi14 ties that develop projects, productions, workshops, or 

15 programs that will encourage public knowledge, edu16 cation, understanding, and appreciation of American 

17 heritage and the arts. 

18 (e) AMERICAN HERITAGE BLOCK GRANT FUND.— 

19 (1) ESTABLISHMENT.—There is established in 

20 the Treasury of the United States a trust fund to 

21 be known as the ‘‘American Heritage Block Grant 

22 Fund’’, consisting of such amounts as may be appro23 priated or credited to the American Heritage Block 

24 Grant Fund as provided in this subsection. 


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1 (2) TRANSFER TO FUND.—There are appro2 priated to the American Heritage Block Grant Fund 

3 amounts equal to .5 percent of the taxes received by 

4 the Treasury after December 31, 2010, that the Sec5 retary determines are attributable to Internet gam6 bling. 

7 (3) METHOD OF TRANSFER.—The amounts ap8 propriated by paragraph (1) shall be transferred 

9 from time to time from the general fund of the 

10 Treasury. Such amounts shall be determined on the 

11 basis of estimates by the Secretary of the taxes, 

12 specified in paragraph (1), paid to or deposited into 

13 the Treasury. Proper adjustments shall be made in 

14 amounts subsequently transferred to the extent prior 

15 estimates are in excess of or are less than the taxes 

16 specified in paragraph (1). 

17 (4) EXPENDITURES FROM AMERICAN HERITAGE

18 BLOCK GRANT FUND.—Amounts in the American 

19 Heritage Block Grant Fund shall be available, as 

20 provided by appropriation Acts, for making expendi21 tures to carry out subsection (a). 

22 SEC. 10. BLOCK GRANTS TO STATES FOR TRANSITIONAL 

23 ASSISTANCE. 

24 The Social Security Act is amended by adding at the 

25 end the following new title: 


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1 ‘‘TITLE XXII—BLOCK GRANTS TO 

2 STATES FOR TRANSITIONAL 

3 ASSISTANCE 

4 ‘‘SEC. 2201. TRANSITIONAL ASSISTANCE TRUST FUND. 

5 ‘‘(a) CREATION OF TRUST FUND.—There is estab6 lished in the Treasury of the United States a trust fund 

7 to be known as the ‘‘Transitional Assistance Trust Fund’’, 

8 consisting of such amounts as may be appropriated or 

9 credited to the Transitional Assistance Trust Fund as pro10 vided in this section. 

11 ‘‘(b) TRANSFER TO TRANSITIONAL ASSISTANCE

12 TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN

13 TAXES.— 

14 ‘‘(1) IN GENERAL.—There are hereby appro15 priated to the Transitional Assistance Trust Fund, 

16 out of any money in the Treasury not otherwise ap17 propriated, amounts equivalent to 25 percent of the 

18 taxes received in the Treasury after December 31, 

19 2010, that the Secretary of the Treasury determines 

20 are attributable to Internet gambling. 

21 ‘‘(2) METHOD OF TRANSFER.—The amounts 

22 appropriated by paragraph (1) shall be transferred 

23 from time to time from the general fund in the 

24 Treasury to the Transitional Assistance Trust Fund. 

25 Such amounts shall be determined on the basis of 


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1 estimates by the Secretary of the Treasury of the 

2 taxes, specified in paragraph (1) of this subsection, 

3 paid to or deposited into the Treasury. Proper ad4 justments shall be made in amounts subsequently 

5 transferred to the extent prior estimates were in ex6 cess of or were less than the taxes specified in para7 graph (1) of this subsection. 

8 ‘‘(c) EXPENDITURES FROM TRANSITIONAL ASSIST9 ANCE TRUST FUND.—Amounts in the Transitional Assist10 ance Trust Fund shall be available, as provided by appro11 priation Acts, for making expenditures to carry out section 

12 2202. 

13 ‘‘SEC. 2202. TRANSITIONAL ASSISTANCE GRANT PROGRAM. 

14 ‘‘(a) IN GENERAL.—Each State shall be entitled to 

15 a payment under this section for each fiscal year in an 

16 amount equal to its allotment for such fiscal year, to be 

17 used by such State to carry out the State’s plan for transi18 tional assistance described in subsection (c), subject to the 

19 requirements of this section. 

20 ‘‘(b) PLAN APPROVAL REQUIRED.—No State may re21 ceive a payment under this section unless the State sub22 mits the State’s plan for transitional assistance described 

23 in subsection (c) to the Secretary and the Secretary ap24 proves such plan. 


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1 ‘‘(c) STATE PLAN FOR TRANSITIONAL ASSIST2 ANCE.—A State plan for transitional assistance is de3 scribed by this subsection if the plan— 

4 ‘‘(1) provides for expanded education opportuni5 ties for individuals who are, or were formerly, in fos6 ter care, including streamlining and coordinating 

7 education financing opportunities and providing 

8 counseling and assistance to such individuals for the 

9 purpose of ensuring completion of their academic 

10 goals; 

11 ‘‘(2) provides for job training opportunities for 

12 individuals who are, or were formerly, in foster care; 

13 ‘‘(3) provides, primarily through expanding ac14 cess to and investment in community colleges, for 

15 expanded post-secondary education and job training 

16 opportunities that lead to a certificate, for individ17 uals who are working in, or had worked in, declining 

18 sectors of the economy, as defined by the Secretary, 

19 and who want to pursue a new career in a sector of 

20 the economy with the potential for high wages and 

21 high growth, as defined by the Secretary; and 

22 ‘‘(4) provides a subsidy for the use of public 

23 transportation by— 


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1 ‘‘(A) individuals qualifying for benefits or 

2 services under title XX, including the Federal3 State Unemployment Insurance Program; and 

4 ‘‘(B) individuals participating in programs 

5 under the Workforce Investment Act. 

6 ‘‘(d) ALLOTMENT.—The allotment for a fiscal year 

7 for a State receiving an allotment for such fiscal year shall 

8 be an amount equal to— 

9 ‘‘(1) the amount appropriated for such fiscal 

10 year under subsection (f), multiplied by 

11 ‘‘(2) the ratio by which the population of the 

12 State bears to the population of all the States receiv13 ing an allotment for such fiscal year as determined 

14 by the Secretary (on the basis of the most recent 

15 data available from the Department of Commerce). 

16 ‘‘(e) DEFINITIONS.—For purposes of this section: 

17 ‘‘(1) IN FOSTER CARE.—The term ‘in foster 

18 care’ means, with respect to an individual, an indi19 vidual who is under the care and placement respon20 sibility of the State agency responsible for admin21 istering a plan, in connection with such individual, 

22 under part B or part E of title IV. 

23 ‘‘(2) SECRETARY.—The term ‘Secretary’ means 

24 the Secretary of Health and Human Services. 


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1 ‘‘(3) STATE.—The term ‘State’ means the 50 

2 States of the United States, the District of Colum3 bia, the Commonwealth of Puerto Rico, the United 

4 States Virgin Islands, Guam, American Samoa, and 

5 the Northern Mariana Islands. 

6 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated for each fiscal year to 

8 the Secretary the amount deposited into the Transitional 

9 Assistance Trust Fund pursuant to section 2201 to carry 

10 out this section.’’. 

Æ 


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