IB 

Union Calendar No. 587 

115TH CONGRESS 

2D SESSION H. R. 5861 

[Report No. 115–754] 

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

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 17, 2018 

Mr. SMITH of Nebraska (for himself, Mr. BRADY of Texas, Mr. NUNES, Ms. 

JENKINS of Kansas, Mr. REED, Mr. RENACCI, Mrs. WALORSKI, Mr. 

LAHOOD, Mr. BISHOP of Michigan, Mr. RICE of South Carolina, Mr. 

SMITH of Missouri, Mr. HOLDING, Mr. BUCHANAN, Mr. MARCHANT, and 

Mr. KELLY of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means 

JUNE 13, 2018 

Additional sponsors: Mr. FERGUSON, Mr. ARRINGTON, Mr. SMUCKER, Mr. 

SAM JOHNSON of Texas, Mr. ALLEN, Mr. WENSTRUP, Mr. GAETZ, Mrs. 

HANDEL, Mr. KUSTOFF of Tennessee, Mr. JOHNSON of Louisiana, Mr. 

RUTHERFORD, Mr. ESTES of Kansas, Mr. BANKS of Indiana, Mr. MARSHALL, Mrs. NOEM, Mr. LOUDERMILK, Mr. DUNN, Mr. CRAMER, Mr. 

MITCHELL, Mr. GIANFORTE, and Mr. ABRAHAM

JUNE 13, 2018 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on May 17, 2018] 


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A BILL 

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

and for other purposes. 


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

3 SECTION 1. SHORT TITLE. 

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

5 with Benefits and Services for Success Act’’. 

6 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

Sec. 4. Re-naming of program. 

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

Sec. 6. Expecting universal engagement and case management. 

Sec. 7. Promoting accountability by measuring work outcomes. 

Sec. 8. Targeting funds to truly needy families. 

Sec. 9. Targeting funds to core purposes. 

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

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

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

Sec. 13. Welfare for needs not weed. 

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

Sec. 15. Aligning and improving data reporting. 

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

Sec. 17. Set-aside for economic downturns. 

Sec. 18. Definitions related to use of funds. 

Sec. 19. Elimination of obsolete provisions. 

Sec. 20. Effective date. 

8 SEC. 3. REFERENCES. 

9 Except as otherwise expressly provided, wherever in 

10 this Act an amendment or repeal is expressed in terms of 

11 an amendment to, or repeal of, a section or other provision, 

12 the reference shall be considered to be made to a section or 

13 other provision of the Social Security Act. 


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1 SEC. 4. RE-NAMING OF PROGRAM. 

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

3 is amended to read as follows: 

4 ‘‘PART A—JOBS AND OPPORTUNITY WITH 

5 BENEFITS AND SERVICES PROGRAM’’. 

6 (b) CONFORMING AMENDMENTS.— 

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

8 U.S.C. 603(a)(2)(B)) is amended by striking ‘‘TANF’’ 

9 and inserting ‘‘JOBS’’. 

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

11 613(a)) is amended by striking ‘‘TANF’’ and insert12 ing ‘‘JOBS’’. 

13 (3) The heading for section 471(e)(7)(B)(i) (42 

14 U.S.C. 671(e)(7)(B)(i)), as in effect pursuant to the 

15 amendment made by section 50711(a)(2) of division 

16 E of the Bipartisan Budget Act of 2018 (Public Law 

17 115–123), is amended by striking ‘‘TANF’’ and in18 serting ‘‘JOBS’’. 

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

20 THE WORKFORCE. 

21 (a) FAMILY ASSISTANCE GRANTS.—Section 403(a)(1) 

22 (42 U.S.C. 603(a)(1)) is amended in each of subparagraphs 

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

24 ‘‘2019 through 2023’’. 


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1 (b) HEALTHY MARRIAGE PROMOTION AND RESPON2 SIBLE FATHERHOOD GRANTS.—Section 403(a)(2)(D) (42 

3 U.S.C. 603(a)(2)(D)) is amended— 

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

5 ‘‘2019 through 2023’’; and 

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

7 (c) TRIBAL FAMILY ASSISTANCE GRANTS.—Section 

8 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by strik9 ing ‘‘2017 and 2018’’ and inserting ‘‘2019 through 2023’’. 

10 (d) IMPROVING ACCESS TO CHILD CARE TO SUPPORT

11 WORK.—Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amend12 ed by striking ‘‘$2,917,000,000 for each of fiscal years 2017 

13 and 2018’’ and inserting ‘‘$3,525,000,000 for each of fiscal 

14 years 2019 through 2023’’. 

15 (e) GRANTS TO THE TERRITORIES.—Section 

16 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by striking 

17 ‘‘2017 and 2018’’ and inserting ‘‘2019 through 2023’’. 

18 SEC. 6. EXPECTING UNIVERSAL ENGAGEMENT AND CASE 

19 MANAGEMENT. 

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

21 as follows: 

22 ‘‘(b) INDIVIDUAL OPPORTUNITY PLANS.— 

23 ‘‘(1) ASSESSMENT.—The State agency respon24 sible for administering the State program funded 

25 under this part shall make an initial assessment of 


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1 the following for each work-eligible individual (as de2 fined in the regulations promulgated pursuant to sec3 tion 407(i)(1)(A)(i)): 

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

5 work experience, work readiness, and barriers to 

6 work of the individual. 

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

8 family of the individual and, where appropriate, 

9 activities or services (such as services offered by 

10 a program funded under section 511) to improve 

11 the well-being of the children. 

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

13 assessment required by paragraph (1) of this sub14 section, the State agency, in consultation with the in15 dividual, shall develop an individual opportunity 

16 plan that— 

17 ‘‘(A) includes a personal responsibility 

18 agreement in which the individual acknowledges 

19 receipt of publicly-funded benefits and responsi20 bility to comply with program requirements in 

21 order to receive the benefits; 

22 ‘‘(B) sets forth the obligations of the indi23 vidual to participate in work activities (as de24 fined in section 407(d)), and the number of 


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1 hours per month for which the individual will so 

2 participate pursuant to section 407; 

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

4 planned short-, intermediate-, and long-term ac5 tions to achieve the goal, and, in the case of an 

6 individual who has not attained 24 years of age 

7 and is in secondary school or the equivalent, the 

8 intermediate action may be completion of sec9 ondary school or the equivalent; 

10 ‘‘(D) describes the job counseling and other 

11 services the State will provide to the individual 

12 to enable the individual to obtain and keep em13 ployment in the private sector; 

14 ‘‘(E) may include referral to appropriate 

15 substance abuse or mental health treatment; and 

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

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

18 with paragraph (1) and (2) with respect to a work19 eligible individual— 

20 ‘‘(A) within 180 days after the effective date 

21 of this subsection, in the case of an individual 

22 who, as of such effective date, is a recipient of as23 sistance under the State program funded under 

24 this part (as in effect immediately before such ef25 fective date); or 


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

2 determined to be eligible for the assistance, in the 

3 case of any other individual. 

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

6 under the State program funded under this part, the 

7 State may reduce, by such amount as the State con8 siders appropriate, the amount of assistance otherwise 

9 payable under the State program to a family that in10 cludes an individual who fails without good cause to 

11 comply with an individual opportunity plan devel12 oped pursuant to this subsection, that is signed by the 

13 individual. 

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

15 with each work-eligible individual assessed by the 

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

17 every 90 days, to— 

18 ‘‘(A) review the individual opportunity 

19 plan developed for the individual; 

20 ‘‘(B) discuss with the individual the 

21 progress made by the individual in achieving the 

22 goals specified in the plan; and 

23 ‘‘(C) update the plan, as necessary, to re24 flect any changes in the circumstances of the in25 dividual since the plan was last reviewed.’’. 


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1 SEC. 7. PROMOTING ACCOUNTABILITY BY MEASURING 

2 WORK OUTCOMES. 

3 (a) IN GENERAL.—Section 407(a) (42 U.S.C. 607(a)) 

4 is amended to read as follows: 

5 ‘‘(a) PERFORMANCE ACCOUNTABILITY AND WORK

6 OUTCOMES.— 

7 ‘‘(1) PURPOSE.—The purpose of this subsection 

8 is to provide for the establishment of performance ac9 countability measures to assess the effectiveness of 

10 States in increasing employment, retention, and ad11 vancement among families receiving assistance under 

12 the State program funded under this part. 

13 ‘‘(2) IN GENERAL.—A State to which a grant is 

14 made under section 403 for a fiscal year shall achieve 

15 the requisite level of performance on an indicator de16 scribed in paragraph (3)(B) of this subsection for the 

17 fiscal year. 

18 ‘‘(3) MEASURING STATE PERFORMANCE.— 

19 ‘‘(A) IN GENERAL.—Each State, in con20 sultation with the Secretary, shall collect and 

21 submit to the Secretary the information nec22 essary to measure the level of performance of the 

23 State for each indicator described in subpara24 graph (B), for fiscal year 2020 and each fiscal 

25 year thereafter, and the Secretary shall use the 

26 information collected for fiscal year 2020 to esVerDate Sep 11 2014 21:09 Jun 13, 2018 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H5861.RH H5861

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1 tablish the baseline level of performance for each 

2 State for each such indicator. 

3 ‘‘(B) INDICATORS OF PERFORMANCE.—The 

4 indicators described in this subparagraph, for a 

5 fiscal year, are the following: 

6 ‘‘(i) The percentage of individuals who 

7 were work-eligible individuals as of the time 

8 of exit from the program, who are in unsub9 sidized employment during the 2nd quarter 

10 after the exit. 

11 ‘‘(ii) The percentage of individuals who 

12 were work-eligible individuals who were in 

13 unsubsidized employment in the 2nd quar14 ter after the exit, who are also in unsub15 sidized employment during the 4th quarter 

16 after the exit. 

17 ‘‘(iii) The median earnings of individ18 uals who were work-eligible individuals as 

19 of the time of exit from the program, who 

20 are in unsubsidized employment during the 

21 2nd quarter after the exit. 

22 ‘‘(iv) The percentage of individuals 

23 who have not attained 24 years of age, are 

24 attending high school or enrolled in an 

25 equivalency program, and are work-eligible 


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1 individuals or were work-eligible individ2 uals as of the time of exit from the program, 

3 who obtain a high school degree or its recog4 nized equivalent while receiving assistance 

5 under the State program funded under this 

6 part or within 1 year after the exit. 

7 ‘‘(C) LEVELS OF PERFORMANCE.— 

8 ‘‘(i) IN GENERAL.—For each State sub9 mitting a State plan pursuant to section 

10 402(a), there shall be established, in accord11 ance with this subparagraph, levels of per12 formance for each of the indicators described 

13 in subparagraph (B). 

14 ‘‘(ii) WEIGHT.—The weight assigned to 

15 such an indicator shall be the following: 

16 ‘‘(I) 40 percent, in the case of the 

17 indicator described in subparagraph 

18 (B)(i). 

19 ‘‘(II) 25 percent, in the case of the 

20 indicator described in subparagraph 

21 (B)(ii). 

22 ‘‘(III) 25 percent, in the case of 

23 the indicator described in subpara24 graph (B)(iii). 


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1 ‘‘(IV) 10 percent, in the case of 

2 the indicator described in subpara3 graph (B)(iv). 

4 ‘‘(iii) AGREEMENT ON REQUISITE PER5 FORMANCE LEVEL FOR EACH INDICATOR.— 

6 ‘‘(I) IN GENERAL.—The Secretary 

7 and the State shall negotiate the req8 uisite level of performance for the State 

9 with respect to each indicator described 

10 in clause (ii), for each of fiscal years 

11 2020 through 2023, and in the case of 

12 each of fiscal years 2021 through 2023, 

13 shall do so before the beginning of the 

14 respective fiscal year. 

15 ‘‘(II) REQUIREMENTS IN ESTAB16 LISHING PERFORMANCE LEVELS.—In 

17 establishing the requisite levels of per18 formance, the State and the Secretary 

19 shall— 

20 ‘‘(aa) take into account how 

21 the levels involved compare with 

22 the levels established for other 

23 States; 

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1 jective statistical model referred to 

2 in clause (v), based on— 

3 ‘‘(AA) the differences 

4 among States in economic 

5 conditions, including dif6 ferences in unemployment 

7 rates or employment losses or 

8 gains in particular indus9 tries; and 

10 ‘‘(BB) the characteris11 tics of participants on entry 

12 into the program, including 

13 indicators of prior work his14 tory, lack of educational or 

15 occupational skills attain16 ment, or other factors that 

17 may affect employment and 

18 earnings; and 

19 ‘‘(CC) take into account 

20 the extent to which the levels 

21 involved promote continuous 

22 improvement in performance 

23 by each State. 

24 ‘‘(iv) REVISIONS BASED ON ECONOMIC

25 CONDITIONS AND INDIVIDUALS RECEIVING


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1 ASSISTANCE DURING THE FISCAL YEAR.— 

2 The Secretary shall, in accordance with the 

3 objective statistical model referred to in 

4 clause (v), revise the requisite levels of per5 formance for a State and a fiscal year to re6 flect the economic conditions and character7 istics of the relevant individuals in the 

8 State during the fiscal year. 

9 ‘‘(v) STATISTICAL ADJUSTMENT

10 MODEL.—The Secretary shall use an objec11 tive statistical model to make adjustments 

12 to the requisite levels of performance for the 

13 economic conditions and characteristics of 

14 the relevant individuals, and shall consult 

15 with the Secretary of Labor to develop a 

16 model that is the same as or similar to the 

17 model described in section 

18 116(b)(3)(A)(viii) of the Workforce Innova19 tion and Opportunity Act (29 U.S.C. 

20 3141(b)(3)(A)(viii)). 

21 ‘‘(vi) DEFINITION OF EXIT.—In this 

22 subsection, the term ‘exit’ means, with re23 spect to a State program funded under this 

24 part, ceases to a receive a JOBS benefit 

25 under the program. 


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1 ‘‘(D) STATE OPTION TO ESTABLISH COMMON

2 EXIT MEASURES.—Notwithstanding subpara3 graph (C)(vi) of this paragraph, a State that has 

4 not provided the notification under section 

5 121(b)(1)(C)(ii) of the Workforce Innovation and 

6 Opportunity Act to exclude the State program 

7 funded under this part as a mandatory one-stop 

8 partner may adopt an alternative definition of 

9 ‘exit’ for the purpose of creating common exit 

10 measures to improve alignment with workforce 

11 programs operated under title I of such Act. 

12 ‘‘(E) REGULATIONS.—In order to ensure 

13 nationwide comparability of data, the Secretary, 

14 after consultation the Secretary of Labor and 

15 with States, shall issue regulations governing the 

16 establishment of the performance accountability 

17 system under this subsection and a template for 

18 performance reports to be used by all States con19 sistent with subsection (b).’’. 

20 (b) REPORTS ON STATE PERFORMANCE ON HHS ON21 LINE DASHBOARD.—Section 407(b) (42 U.S.C. 607(b)) is 

22 amended to read as follows: 

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

24 Secretary shall, directly or through the use of grants or con25 tracts, establish and operate an Internet website that is acVerDate Sep 11 2014 21:09 Jun 13, 2018 Jkt 079200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6203 E:\BILLS\H5861.RH H5861

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1 cessible to the public, with a dashboard that is regularly 

2 updated and provides easy-to-understand information on 

3 the performance of each State program funded under this 

4 part, including a profile for each such program, expressed 

5 by use of a template, which shall include— 

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

7 performance levels established for the State under sub8 section (a), including, with respect to each such level, 

9 whether the State achieves, exceeds, or fails to achieve 

10 the level on an ongoing basis, including— 

11 ‘‘(A) information on any adjustments made 

12 to the requisite levels using the statistical adjust13 ment model described in subsection (a)(3)(D)(v); 

14 and 

15 ‘‘(B) a grade based on the overall perform16 ance of the State, as determined by the Secretary 

17 and in consultation with the State, and the over18 all performance shall be graded based on the per19 formance indicators and weights for each such 

20 indicator as described in subsection (a); 

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

22 the characteristics and demographics of individuals 

23 receiving assistance under the State program, includ24 ing— 


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1 ‘‘(A) the number and percentage of child2 only cases and reason why the cases are child3 only; and 

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

5 that each work-eligible individual in the State 

6 program participates in work activities, includ7 ing a separate section showing the number and 

8 percentage of the work-eligible individuals with 

9 zero hours of the participation and the reason for 

10 non-participation; 

11 ‘‘(3) information on the results of improper pay12 ments reviews; 

13 ‘‘(4) a link to the State plan approved under sec14 tion 402; and 

15 ‘‘(5) information regarding any penalty im16 posed, or other corrective action taken, by the Sec17 retary against a State for failing to achieve a req18 uisite performance level or any other requirement im19 posed by or under this part.’’. 

20 (c) MODIFICATION OF RULES FOR DETERMINING

21 WHETHER AN INDIVIDUAL IS ENGAGED IN WORK.—Section 

22 407(c) (42 U.S.C. 607(c)) is amended— 

23 (1) in paragraph (1)— 

24 (A) in subparagraph (A)— 


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1 (i) by striking ‘‘For purposes of sub2 section (b)(1)(B)(i), a’’ and inserting ‘‘A’’; 

3 and 

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

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

6 and 

7 (B) in subparagraph (B)— 

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

9 by striking ‘‘For purposes of subsection 

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

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

12 fewer than’’ and all that follows through 

13 ‘‘this subsection’’; and 

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

15 fewer than’’ and all that follows through 

16 ‘‘subsection (d)’’; and 

17 (2) in paragraph (2)— 

18 (A) by striking subparagraphs (A) and (D); 

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

20 by striking ‘‘For purposes of determining month21 ly participation rates under subsection 

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

23 (C) by redesignating subparagraphs (B) 

24 and (C) as subparagraphs (A) and (B), respec25 tively. 


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1 (d) MODIFICATIONS TO ALLOWABLE WORK ACTIVI2 TIES.—Section 407(d) (42 U.S.C. 607(d)) is amended— 

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

4 apprenticeship’’ before the semicolon; 

5 (2) in paragraph (8), by striking ‘‘(not to exceed 

6 12 months with respect to any individual)’’ and in7 serting ‘‘, including career technical education’’; 

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

9 end; 

10 (4) in paragraph (12), by striking the period 

11 and inserting ‘‘; and’’; and 

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

13 ‘‘(13) any other activity that the State deter14 mines is necessary to improve the employment, earn15 ings, or other outcomes of a recipient of assistance 

16 that are used in determining a level of performance 

17 by the State for purposes of subsection (a), as de18 scribed in the State plan approved under section 

19 402.’’. 

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

21 (a) PROHIBITION ON USE OF FUNDS FOR FAMILIES

22 WITH INCOME GREATER THAN TWICE THE POVERTY

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

24 read as follows: 

25 ‘‘(k) PROHIBITIONS.— 


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1 ‘‘(1) USE OF FUNDS FOR PERSONS WITH INCOME

2 GREATER THAN TWICE THE POVERTY LINE.—A State 

3 to which a grant is made under this part shall not 

4 use the grant to provide any assistance or services to 

5 a family whose monthly income exceeds twice the pov6 erty line (as defined by the Office of Management and 

7 Budget, and revised annually in accordance with sec8 tion 673(2) of the Omnibus Budget Reconciliation Act 

9 of 1981 (42 U.S.C. 9902(2))).’’. 

10 (b) ELIMINATION OF LIMITATION ON USE OF FUNDS

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

12 (42 U.S.C. 604(b)(2)) is amended to read as follows: 

13 ‘‘(2) EXCEPTIONS.—Paragraph (1) of this sub14 section shall not apply to the use of a grant for— 

15 ‘‘(A) information technology and comput16 erization needed for tracking, monitoring, or 

17 data collection required by or under this part; or 

18 ‘‘(B) case management activities to carry 

19 out section 408(b).’’. 

20 (c) PROHIBITION ON USE OF FUNDS FOR DIRECT

21 SPENDING ON CHILD CARE OR CHILD WELFARE SERVICES

22 OR ACTIVITIES.—Section 404(k) (42 U.S.C. 604(k)), as 

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

24 adding at the end the following: 


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1 ‘‘(2) DIRECT SPENDING ON CHILD CARE SERV2 ICES OR ACTIVITIES OR CHILD WELFARE SERVICES OR

3 ACTIVITIES.—A State to which a grant is made under 

4 this part shall not use the grant for direct spending 

5 on child care services or activities or direct spending 

6 on child welfare services or activities.’’. 

7 (d) EXPANSION OF AUTHORITY TO TRANSFER FUNDS

8 TO OTHER PROGRAMS.—Section 404(d) (42 U.S.C. 604(d)) 

9 is amended by striking paragraphs (1) through (3) and in10 serting the following: 

11 ‘‘(1) IN GENERAL.—A State may use not more 

12 than 50 percent of the grant made to the State under 

13 section 403(a)(1) to carry out a State program pursu14 ant to any or all of the following provisions of law: 

15 ‘‘(A) The Child Care and Development 

16 Block Grant Act of 1990. 

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

18 and Opportunity Act. 

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

20 ‘‘(2) LIMITATION ON AMOUNT TRANSFERRABLE

21 TO SUBPART 1 OF PART B OF THIS TITLE.— 

22 ‘‘(A) In general.—A State may use not 

23 more than the applicable percentage of the 

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1 tion 403(a)(1) to carry out State programs pur2 suant to subpart 1 of part B. 

3 ‘‘(B) APPLICABLE PERCENTAGE.—For pur4 poses of subparagraph (A), the applicable per5 centage is 10 percent. 

6 ‘‘(3) APPLICABLE RULES.— 

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

8 subparagraph (B) of this paragraph, any 

9 amount paid to a State under this part that is 

10 used to carry out a State program pursuant to 

11 a provision of law specified in paragraph (1) 

12 shall not be subject to the requirements of this 

13 part, but shall be subject to the requirements that 

14 apply to Federal funds provided directly under 

15 the provision of law to carry out the program, 

16 and the expenditure of any amount so used shall 

17 not be considered to be an expenditure under this 

18 part. 

19 ‘‘(B) FUNDS TRANSFERRED TO THE

20 WIOA.—In the case of funds transferred under 

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

22 ‘‘(i) all of the funds will be used to 

23 support families eligible for assistance 

24 under the State program funded under this 

25 part; and 


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

2 funds will be reserved for statewide work3 force investment activities referred to in sec4 tion 128(a)(1) of the Workforce Innovation 

5 and Opportunity Act. 

6 ‘‘(4) EXCLUSION OF STATES EXCLUDING THE

7 STATE JOBS PROGRAM AS A MANDATORY ONE-STOP

8 PARTNER UNDER THE WIOA.—The authority provided 

9 by this subsection may not be exercised by a State 

10 that has provided the notification referred to in sec11 tion 407(a)(3)(D).’’. 

12 SEC. 9. TARGETING FUNDS TO CORE PURPOSES. 

13 (a) REQUIREMENT THAT STATES RESERVE 25 PER14 CENT OF JOBS GRANT FOR SPENDING ON CORE ACTIVI15 TIES.—Section 408(a) (42 U.S.C. 608(a)) is amended by 

16 adding at the end the following: 

17 ‘‘(13) REQUIREMENT THAT STATES RESERVE 25 

18 PERCENT OF JOBS GRANT FOR SPENDING ON CORE AC19 TIVITIES.—A State to which a grant is made under 

20 section 403(a)(1) for a fiscal year shall expend not 

21 less than 25 percent of the grant on assistance, case 

22 management, work supports and supportive services, 

23 work, wage subsidies, work activities (as defined in 

24 section 407(d)), and non-recurring short-term bene25 fits.’’. 


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1 (b) REQUIREMENT THAT AT LEAST 25 PERCENT OF

2 QUALIFIED STATE EXPENDITURES BE FOR CORE ACTIVI3 TIES.—Section 408(a) (42 U.S.C. 608(a)), as amended by 

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

5 end the following: 

6 ‘‘(14) REQUIREMENT THAT AT LEAST 25 PER7 CENT OF QUALIFIED STATE EXPENDITURES BE FOR

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

9 qualified State expenditures (as defined in section 

10 409(a)(7)(B)(i)) of a State during the fiscal year 

11 shall be for assistance, case management, work sup12 ports and supportive services, work, wage subsidies, 

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

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

15 (c) PHASE-OUT OF COUNTING OF THIRD-PARTY CON16 TRIBUTIONS AS QUALIFIED STATE EXPENDITURES.—Sec17 tion 408(a) (42 U.S.C. 608(a)), as amended by subsections 

18 (a) and (b) of this section, is amended by adding at the 

19 end the following: 

20 ‘‘(15) PHASE-OUT OF COUNTING OF THIRD-PARTY

21 CONTRIBUTIONS AS QUALIFIED STATE EXPENDI22 TURES.— 

23 ‘‘(A) IN GENERAL.—The qualified State ex24 penditures (as defined in section 

25 409(a)(7)(B)(i)) of a State for a fiscal year that 


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1 are attributable to the value of goods and services 

2 provided by a source other than a State or local 

3 government shall not exceed the applicable per4 centage of the expenditures for the fiscal year. 

5 ‘‘(B) APPLICABLE PERCENTAGE.—In sub6 paragraph (A), the term ‘applicable percentage’ 

7 means, with respect to a fiscal year— 

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

9 year 2020; 

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

11 year 2021; 

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

13 year 2022; and 

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

15 year 2023 or any succeeding fiscal year.’’. 

16 SEC. 10. STRENGTHENING PROGRAM INTEGRITY BY MEAS17 URING IMPROPER PAYMENTS. 

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

19 at the end the following: 

20 ‘‘(l) APPLICABILITY OF IMPROPER PAYMENTS LAWS.— 

21 ‘‘(1) IN GENERAL.—The Improper Payments In22 formation Act of 2002 and the Improper Payments 

23 Elimination and Recovery Act of 2010 shall apply to 

24 a State in respect of the State program funded under 


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1 this part in the same manner in which such Acts 

2 apply to a Federal agency. 

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

4 date of the enactment of this subsection, the Secretary 

5 shall prescribe regulations governing how a State re6 views and reports improper payments under the State 

7 program funded under this part.’’. 

8 SEC. 11. PROHIBITION ON STATE DIVERSION OF FEDERAL 

9 FUNDS TO REPLACE STATE SPENDING. 

10 Section 408(a) (42 U.S.C. 608(a)), as amended by sec11 tion 9 of this Act, is amended by adding at the end the 

12 following: 

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

14 Funds made available to a State under this part shall 

15 be used to supplement, not supplant, State general 

16 revenue spending on activities described in section 

17 404.’’. 

18 SEC. 12. INCLUSION OF POVERTY REDUCTION AS A PRO19 GRAM PURPOSE. 

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

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

22 (3); 

23 (2) by striking the period at the end of para24 graph (4) and inserting ‘‘; and’’; and 

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


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1 ‘‘(5) reduce child poverty by increasing employ2 ment entry, retention, and advancement of needy par3 ents.’’. 

4 SEC. 13. WELFARE FOR NEEDS NOT WEED. 

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

6 608(a)(12)(A)) is amended— 

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

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

9 (iii) and inserting ‘‘; or’’; and 

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

11 ‘‘(iv) any establishment that offers 

12 marihuana (as defined in section 102(16) of 

13 the Controlled Substances Act) for sale.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by sub15 section (a) shall take effect on the date that is 2 years after 

16 the date of the enactment of this Act. 

17 SEC. 14. STRENGTHENING ACCOUNTABILITY THROUGH 

18 HHS APPROVAL OF STATE PLANS. 

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

20 amended— 

21 (1) in subsection (a)— 

22 (A) in the matter preceding paragraph (1), 

23 by striking ‘‘found’’ and inserting ‘‘approved 

24 that’’; and 

25 (B) in paragraph (1)— 


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1 (i) in subparagraph (A)— 

2 (I) by striking clauses (ii) and 

3 (iii) and inserting the following: 

4 ‘‘(ii) Require work-eligible individuals 

5 (as defined in the regulations promulgated 

6 pursuant to section 407(i)(1)(A)(i)) to en7 gage in work activities consistent with sec8 tion 407(c). The document shall describe 

9 any other activity that the State will con10 sider a work activity under section 

11 407(c)(13).’’; 

12 (II) by redesignating clauses (iv) 

13 through (viii) as clauses (iii) through 

14 (vii), respectively; and 

15 (III) by adding at the end the fol16 lowing: 

17 ‘‘(viii) Describe the case management 

18 practices of the State with respect to the re19 quirements of section 408(b), provide a copy 

20 of the form or forms that will be used to as21 sess a work-eligible individual (as so de22 fined) and prepare an individual oppor23 tunity plan for the individual, describe how 

24 the State will ensure that such a plan is re25 viewed in accordance with section 


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1 408(b)(5), and describe how the State will 

2 measure progress under the plan. 

3 ‘‘(ix) Propose the requisite levels of 

4 performance for the State for purposes of 

5 section 407(a)(3)(D) for each year in the 2- 

6 year period referred to in subsection (d) of 

7 this section, and provide an explanation 

8 with supporting data of why each such level 

9 is appropriate. 

10 ‘‘(x) Describe how the State will engage 

11 low-income noncustodial parents paying 

12 child support and how such a parent will be 

13 provided with access to work support and 

14 other services under the program to which 

15 the parent is referred to support their em16 ployment and advancement. 

17 ‘‘(xi) Describe how the State will com18 ply with improper payments provisions in 

19 section 404(l). 

20 ‘‘(xii) Describe coordination with other 

21 programs, including whether the State in22 tends to exercise authority provided by sec23 tion 404(d) of this Act to transfer any funds 

24 paid to the State under this part, provide 

25 assurance that, in the case of a transfer to 


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1 carry out a program under title I of the 

2 Workforce Innovation and Opportunity Act, 

3 the State will comply with section 

4 404(d)(3)(B) of this Act and coordinate 

5 with the one-stop delivery system under the 

6 Workforce Innovation and Opportunity Act, 

7 and describe how the State will coordinate 

8 with the programs involved to provide serv9 ices to families receiving assistance under 

10 the program referred to in paragraph (1) of 

11 this subsection. 

12 ‘‘(xiii) Describe how the State will pro13 mote marriage, such as through temporary 

14 disregard of the income of a new spouse 

15 when an individual receiving assistance 

16 under the State program marries so that the 

17 couple doesn’t automatically lose benefits 

18 due to marriage. 

19 ‘‘(xiv) Describe how the State will 

20 allow for a transitional period of benefits, 

21 such as through temporary earned income 

22 disregards or a gradual reduction in the 

23 monthly benefit amount, for an individual 

24 receiving assistance who obtains employ25 ment and becomes ineligible due to an inVerDate Sep 11 2014 21:09 Jun 13, 2018 Jkt 079200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6203 E:\BILLS\H5861.RH H5861

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1 crease in income obtained through employ2 ment or through an increase in wages.’’; 

3 and 

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

5 clauses (iv) and (v); 

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

7 following: 

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

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

10 plan or plan amendment submitted by a State under this 

11 subsection.’’; and 

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

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

14 this section shall be designed to be implemented during a 

15 2-year period. 

16 ‘‘(e) COMBINED PLAN ALLOWED.—A State may sub17 mit to the Secretary and the Secretary of Labor a combined 

18 State plan that meets the requirements of subsections (a) 

19 and (d) and that is for programs and activities under the 

20 Workforce Innovation and Opportunity Act. 

21 ‘‘(f) APPROVAL OF PLANS.—The Secretary shall ap22 prove any plan submitted pursuant to this section that 

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

24 (b) DUTIES OF THE SECRETARY.— 


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1 (1) COORDINATION OF ACTIVITIES; DISSEMINA2 TION OF INFORMATION.—Section 416 (42 U.S.C. 616) 

3 is amended— 

4 (A) by inserting ‘‘(a) IN GENERAL.—’’ be5 fore ‘‘The programs’’; and 

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

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

8 shall coordinate all activities of the Department of Health 

9 and Human Services relating to work activities (as defined 

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

11 employment outcomes, and, to the maximum extent prac12 ticable, coordinate the activities of the Department in this 

13 regard with similar activities of other Federal entities. 

14 ‘‘(c) DISSEMINATION OF INFORMATION.—The Sec15 retary shall disseminate, for voluntary informational pur16 poses, information on practices that scientifically valid re17 search indicates are most successful in improving the qual18 ity of State and tribal programs funded under this part.’’. 

19 (c) TECHNICAL ASSISTANCE.— 

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

21 is amended to read as follows: 

22 ‘‘SEC. 406. TECHNICAL ASSISTANCE. 

23 ‘‘(a) IN GENERAL.—The Secretary shall provide tech24 nical assistance to States and Indian tribes (which may 

25 include providing technical assistance on a reimbursable 


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1 basis), which shall be provided by qualified experts on prac2 tices grounded in scientifically valid research, where appro3 priate, to support activities related publication of State per4 formance under section 407(b) and to carry out State and 

5 tribal programs funded under this part. 

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

7 reserve not more than 0.25 percent of the amount appro8 priated by section 403(a)(1)(C) for a fiscal year to carry 

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

10 (2) CONFORMING AMENDMENT.—Section 

11 403(a)(1)(B) (42 U.S.C. 603(a)(1)(B)) is amended by 

12 striking ‘‘percentage specified in section 413(h)(1)’’ 

13 and inserting ‘‘the sum of the percentages specified in 

14 sections 406(b) and 413(h)’’. 

15 SEC. 15. ALIGNING AND IMPROVING DATA REPORTING. 

16 (a) REQUIREMENT THAT STATES REPORT FULL-POP17 ULATION DATA.—Section 411(a)(1) (42 U.S.C. 611(a)(1)) 

18 is amended— 

19 (1) by striking subparagraph (B); 

20 (2) by striking ‘‘(1) GENERAL REPORTING RE21 QUIREMENT.—’’; and 

22 (3) by— 

23 (A) redesignating— 

24 (i) subparagraph (A) as paragraph 

25 (1); 


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1 (ii) clauses (i) through (xvii) of sub2 paragraph (A) as subparagraphs (A) 

3 through (Q), respectively; 

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

5 clause (ii) as clauses (i) through (v), respec6 tively; 

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

8 clause (xi) as clauses (i) through (vii), re9 spectively; and 

10 (v) subclauses (I) through (V) of clause 

11 (xvi) as clauses (i) through (v), respectively; 

12 and 

13 (B) moving each such redesignated provi14 sion 2 ems to the left. 

15 (b) REPORT ON PARTICIPATION IN WORK ACTIVI16 TIES.—Section 411(a)(1) (42 U.S.C. 611(a)(1)), as amend17 ed by subsection (a)(3) of this section, is amended by strik18 ing subparagraphs (K) and (L) and inserting the following: 

19 ‘‘(K) The work eligibility status of each in20 dividual in the family, and— 

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

22 individual (as defined in the regulations 

23 promulgated pursuant to section 

24 407(i)(1)(A)(i)) in the family— 


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1 ‘‘(I) the number of hours (includ2 ing zero hours) per month of participa3 tion in— 

4 ‘‘(aa) work activities (as de5 fined in section 407(d)); and 

6 ‘‘(bb) any other activity re7 quired by the State to remove a 

8 barrier to employment; and 

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

10 the family who is not a work-eligible indi11 vidual (as so defined), the reason for that 

12 status. 

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

14 so defined) and each adult in the family who did 

15 not participate in work activities (as so defined) 

16 during a month, the reason for the lack of par17 ticipation.’’. 

18 (c) REPORTING OF INFORMATION ON EMPLOYMENT

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

20 611(c)) is amended to read as follows: 

21 ‘‘(c) REPORTING OF INFORMATION ON EMPLOYMENT

22 AND EARNINGS OUTCOMES.—The Secretary, in consulta23 tion with the Secretary of Labor, shall determine the infor24 mation that is necessary to compute the employment and 

25 earnings outcomes and the statistical adjustment model for 


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1 the employment and earnings outcomes required under sec2 tion 407, and each eligible State shall collect and report 

3 that information to the Secretary.’’. 

4 SEC. 16. TECHNICAL CORRECTIONS TO DATA EXCHANGE 

5 STANDARDS TO IMPROVE PROGRAM COORDI6 NATION. 

7 (a) IN GENERAL.—Section 411(d) (42 U.S.C. 611(d)) 

8 is amended to read as follows: 

9 ‘‘(d) DATA EXCHANGE STANDARDS FOR IMPROVED

10 INTEROPERABILITY.— 

11 ‘‘(1) DESIGNATION.—The Secretary shall, in con12 sultation with an interagency work group established 

13 by the Office of Management and Budget and consid14 ering State government perspectives, by rule, des15 ignate data exchange standards to govern, under this 

16 part— 

17 ‘‘(A) necessary categories of information 

18 that State agencies operating programs under 

19 State plans approved under this part are re20 quired under applicable Federal law to electroni21 cally exchange with another State agency; and 

22 ‘‘(B) Federal reporting and data exchange 

23 required under applicable Federal law. 


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1 ‘‘(2) REQUIREMENTS.—The data exchange stand2 ards required by paragraph (1) shall, to the extent 

3 practicable— 

4 ‘‘(A) incorporate a widely accepted, non5 proprietary, searchable, computer-readable for6 mat, such as the eXtensible Markup Language; 

7 ‘‘(B) contain interoperable standards devel8 oped and maintained by intergovernmental part9 nerships, such as the National Information Ex10 change Model; 

11 ‘‘(C) incorporate interoperable standards 

12 developed and maintained by Federal entities 

13 with authority over contracting and financial 

14 assistance; 

15 ‘‘(D) be consistent with and implement ap16 plicable accounting principles; 

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

18 cost-effective and improves program efficiency 

19 and effectiveness; and 

20 ‘‘(F) be capable of being continually up21 graded as necessary. 

22 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 

23 subsection shall be construed to require a change to 

24 existing data exchange standards found to be effective 

25 and efficient.’’. 


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

2 is 24 months after the date of the enactment of this section, 

3 the Secretary of Health and Human Services shall issue 

4 a proposed rule that— 

5 (1) identifies federally required data exchanges, 

6 include specification and timing of exchanges to be 

7 standardized, and address the factors used in deter8 mining whether and when to standardize data ex9 changes; and 

10 (2) specifies State implementation options and 

11 describes future milestones. 

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

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

14 as follows: 

15 ‘‘(e) DEADLINES FOR OBLIGATION AND EXPENDI16 TURES OF FUNDS BY STATES.— 

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graph (2), a State to which funds are paid under sec19 tion 403(a)(1) shall obligate the funds within 2 years 

20 after the date the funds are so paid, and shall expend 

21 the funds within 3 years after such date. 

22 ‘‘(2) EXCEPTION FOR LIMITED AMOUNT OF

23 FUNDS SET ASIDE FOR FUTURE USE.—A State to 

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1 serve not more than 15 percent of the funds for future 

2 use in the State program funded under this part.’’. 

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

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

5 at the end the following: 

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

7 cash, payments, vouchers, and other forms of benefits 

8 designed to meet a family’s ongoing basic needs (such 

9 as for food, clothing, shelter, utilities, household goods, 

10 personal care items, and general incidental expenses). 

11 ‘‘(7) WORK SUPPORTS.—The term ‘work sup12 ports’ means assistance and non-assistance transpor13 tation benefits (such as the value of allowances, bus 

14 tokens, car payments, auto repair, auto insurance re15 imbursement, and van services provided in order to 

16 help families obtain, retain, or advance in employ17 ment, participate in work activities (as defined in 

18 section 407(d)), or as a non-recurrent, short-term ben19 efit, including goods provided to individuals in order 

20 to help them obtain or maintain employment (such as 

21 tools, uniforms, fees to obtain special licenses, bonuses, 

22 incentives, and work support allowances and expendi23 tures for job access). 

24 ‘‘(8) SUPPORTIVE SERVICES.—The term ‘sup25 portive services’ means services such as domestic vioVerDate Sep 11 2014 21:09 Jun 13, 2018 Jkt 079200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6203 E:\BILLS\H5861.RH H5861

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1 lence services, and mental health, substance abuse and 

2 disability services, housing counseling services, and 

3 other family supports, except to the extent that the 

4 provision of the service would violate section 

5 408(a)(6). 

6 ‘‘(9) JOBS BENEFIT.—The term ‘JOBS benefit’ 

7 means— 

8 ‘‘(A) assistance; or 

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

10 funds provided under section 403(a) or with 

11 qualified State expenditures, with respect to a 

12 person who— 

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

14 defined in the regulations promulgated pur15 suant to section 407(i)(1)(A)(i)) at the time 

16 of entry into subsidized employment, such 

17 as on-the-job training or apprenticeship; 

18 and 

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

20 SEC. 19. ELIMINATION OF OBSOLETE PROVISIONS. 

21 (a) ELIMINATION OF SUPPLEMENTAL GRANTS TO

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

23 by striking paragraph (3). 

24 (b) ELIMINATION OF BONUS TO REWARD HIGH PER25 FORMANCE STATES.— 


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

2 603(a)) is amended by striking paragraph (4). 

3 (2) CONFORMING AMENDMENT.—Section 

4 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 

5 striking ‘‘403(a)(4),’’. 

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

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

8 603(a)) is amended by striking paragraph (5). 

9 (2) CONFORMING AMENDMENTS.— 

10 (A) ELIMINATION OF EXCLUSION FROM

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

12 608(a)(7)) is amended by striking subparagraph 

13 (G). 

14 (B) ELIMINATION OF PENALTY FOR MISUSE

15 OF COMPETITIVE WELFARE-TO-WORK FUNDS.— 

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

17 amended by striking subparagraph (C). 

18 (C) ELIMINATION OF EXCLUSION FROM

19 QUALIFIED STATE EXPENDITURES OF STATE

20 FUNDS USED TO MATCH WELFARE-TO-WORK

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

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

23 sentence— 

24 (i) by adding ‘‘or’’ at the end of sub25 clause (II); and 


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1 (ii) by striking subclause (III) and re2 designating subclause (IV) as subclause 

3 (III). 

4 (D) ELIMINATION OF PENALTY FOR FAIL5 URE OF STATE TO MAINTAIN HISTORIC EFFORT

6 DURING YEAR IN WHICH WELFARE-TO-WORK

7 GRANT IS RECEIVED.—Section 409(a) (42 U.S.C. 

8 609(a)) is amended by striking paragraph (13). 

9 (E) ELIMINATION OF REQUIREMENTS RE10 LATING TO WELFARE-TO-WORK GRANTS IN QUAR11 TERLY STATE REPORTS.—Section 411(a) (42 

12 U.S.C. 611(a)), as amended by section 15(a) of 

13 this Act, is amended— 

14 (i) in paragraph (1), by striking ‘‘(ex15 cept for information relating to activities 

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

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

18 (4), by striking the comma and all that fol19 lows and inserting a period. 

20 (F) INDIAN TRIBAL PROGRAMS.—Section 

21 412(a) (42 U.S.C. 612(a)) is amended by strik22 ing paragraph (3). 

23 (G) ELIMINATION OF REQUIREMENT TO DIS24 CLOSE CERTAIN INFORMATION TO PRIVATE IN25 DUSTRY COUNCIL RECEIVING WELFARE-TO-WORK


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1 FUNDS.—Section 454A(f) (42 U.S.C. 654a(f)) is 

2 amended by striking paragraph (5). 

3 (H) GRANTS TO TERRITORIES.—Section 

4 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 

5 striking ‘‘403(a)(5),’’. 

6 (d) ELIMINATION OF CONTINGENCY FUND.— 

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

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

9 paragraph (5). 

10 (2) CONFORMING AMENDMENTS.— 

11 (A) TRANSFER OF NEEDY STATE DEFINI12 TION.— 

13 (i) IN GENERAL.—Paragraph (5) of 

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

15 (I) amended— 

16 (aa) in the matter preceding 

17 subparagraph (A), by striking 

18 ‘‘paragraph (4)’’ and inserting 

19 ‘‘subparagraph (C)’’; 

20 (bb) in each of subpara21 graphs (A) and (B), by redesig22 nating clauses (i) and (ii) as sub23 clauses (I) and (II), respectively; 


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1 (cc) by redesignating sub2 paragraphs (A) and (B) as 

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

4 (dd) by redesignating such 

5 paragraph as subparagraph (D); 

6 and 

7 (ee) by moving each provi8 sion 2 ems to the right; and 

9 (II) as so amended, hereby trans10 ferred into section 409(a)(3) (42 

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

12 of such section. 

13 (ii) CONFORMING AMENDMENT.—Sec14 tion 409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) 

15 is amended by striking ‘‘(as defined in sec16 tion 403(b)(5))’’. 

17 (B) ELIMINATION OF PENALTY FOR FAILURE

18 OF STATE RECEIVING AMOUNTS FROM CONTIN19 GENCY FUND TO MAINTAIN 100 PERCENT OF HIS20 TORIC EFFORT.—Section 409(a) (42 U.S.C. 

21 609(a)) is amended by striking paragraph (10). 

22 (e) CONFORMING AMENDMENTS RELATED TO ELIMI23 NATION OF FEDERAL LOANS FOR STATE WELFARE PRO24 GRAMS.— 


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1 (1) ELIMINATION OF ASSOCIATED PENALTY PRO2 VISION.— 

3 (A) IN GENERAL.—Section 409(a) (42 

4 U.S.C. 609(a)) is amended by striking para5 graph (6). 

6 (B) CONFORMING AMENDMENTS.—Section 

7 412(g)(1) (42 U.S.C. 612(g)(1)) is amended by 

8 striking ‘‘(a)(6),’’. 

9 (2) ELIMINATION OF PROVISION PROVIDING FOR

10 TRIBAL ELIGIBILITY.—Section 412 (42 U.S.C. 612) is 

11 amended by striking subsection (f). 

12 (3) ELIMINATION OF DISREGARD OF LOAN IN AP13 PLYING LIMIT ON PAYMENTS TO THE TERRITORIES.— 

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

15 by striking ‘‘406,’’. 

16 (f) ELIMINATION OF LIMITATIONS ON OTHER STATE

17 PROGRAMS FUNDED WITH QUALIFIED STATE EXPENDI18 TURES.— 

19 (1) The following provisions are each amended 

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

21 qualified State expenditures (as defined in section 

22 409(a)(7)(B)(i))’’: 

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

24 407(e) (42 U.S.C. 607(e)(1) and (2)). 


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

2 611(a)(1)), as amended by section 15(a)(3)(A)(i) 

3 of this Act. 

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

5 413 (42 U.S.C. 613(d) and (e)(1)). 

6 (2) Section 413(a) (42 U.S.C. 613(a)) is amend7 ed by striking ‘‘and any other State program funded 

8 with qualified State expenditures (as defined in sec9 tion 409(a)(7)(B)(i))’’. 

10 (g) CONFORMING AMENDMENTS RELATED TO ELIMI11 NATION OF REPORT.— 

12 (1) IN GENERAL.—Section 409(a)(2) (42 U.S.C. 

13 609(a)(2)) is amended— 

14 (A) in the paragraph heading, by inserting 

15 ‘‘QUARTERLY’’ before ‘‘REPORT’’; 

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

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

18 (C) by striking ‘‘(A) QUARTERLY RE19 PORTS.—’’; 

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

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

22 subparagraph (A) as subparagraphs (A) and 

23 (B), respectively (and adjusting the margins ac24 cordingly). 

25 (2) CONFORMING AMENDMENTS.— 


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1 (A) Section 409(b)(2) (42 U.S.C. 609(b)(2)) 

2 is amended by striking ‘‘and,’’ and all that fol3 lows and inserting a period. 

4 (B) Section 409(c)(4) (42 U.S.C. 609(c)(4)) 

5 is amended by striking ‘‘(2)(B),’’. 

6 (h) ANNUAL REPORTS TO CONGRESS.—Section 

7 411(b)(1)(A) (42 U.S.C. 611(b)(1)(A)) is amended by strik8 ing ‘‘participation rates’’ and inserting ‘‘outcome meas9 ures’’. 

10 (i) REDUCTION IN FORCE PROVISIONS.—Section 

11 416(a) (42 U.S.C. 616(a)), as so designated by section 

12 14(b)(1)(A) of this Act, is amended by striking ‘‘, and the 

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

14 (j) CONFORMING CROSS-REFERENCES.— 

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

16 (A) in subsection (a)(7)(B)(i)(III), by strik17 ing ‘‘(12)’’ and inserting ‘‘(10)’’; 

18 (B) in subsection (a) (as amended by sub19 sections (c)(2)(D), (d)(2)(B), and (e)(1)(A) of 

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

21 (8), (9), (11), (12), (14), (15), and (16) as para22 graphs (6) through (13), respectively; 

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

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


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

2 (10), (12), (13), or (16)’’ and inserting ‘‘(10), or 

3 (13)’’. 

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

5 each of subsections (d)(3)(A)(i) and (g)(1) by striking 

6 ‘‘409(a)(8)’’ and inserting ‘‘409(a)(7)’’. 

7 (k) MODIFICATIONS TO MAINTENANCE-OF-EFFORT RE8 QUIREMENT.—Section 409(a)(6)(B)(i) (42 U.S.C. 

9 609(a)(6)(B)(i)), as redesignated by subsection (j)(1)(B) of 

10 this section, is amended— 

11 (1) in subclause (I)— 

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

13 striking ‘‘all State programs’’ and inserting ‘‘the 

14 State program funded under this part’’; 

15 (B) by redesignating items (dd) and (ee) as 

16 items (ee) and (ff), respectively, and inserting 

17 after item (cc) the following: 

18 ‘‘(dd) Expenditures for a 

19 purpose described in paragraph 

20 (3) or (4) of section 401(a).’’; and 

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

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

23 (ff)’’; 

24 (2) in subclause (II)(aa), by inserting ‘‘(as in ef25 fect just before the effective date of the Jobs and OpVerDate Sep 11 2014 21:09 Jun 13, 2018 Jkt 079200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6203 E:\BILLS\H5861.RH H5861

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1 portunity with Benefits and Services for Success 

2 Act)’’ after ‘‘this section’’; 

3 (3) by striking subclause (V); and 

4 (4) in subclause (IV), by inserting ‘‘, except any 

5 of such families whose monthly income exceeds twice 

6 the poverty line (as defined by the Office of Manage7 ment and Budget, and revised annually in accordance 

8 with section 673(2) of the Omnibus Budget Reconcili9 ation Act of 1981 (42 U.S.C. 9902(2)))’’ before the pe10 riod. 

11 SEC. 20. EFFECTIVE DATE. 

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

13 made by this Act shall take effect on October 1, 2018. 


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Union Calendar No. 587 

115TH CONGRESS 

2D SESSION H. R. 5861 

[Report No. 115–754] 

A BILL 

To amend part A of title IV of the Social Security 

Act, and for other purposes. 

JUNE 13, 2018 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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