I 

113TH CONGRESS 

2D SESSION H. R. 5352 

To strengthen and expand proven anti-poverty programs and initiatives. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2014 

Ms. LEE of California (for herself, Ms. NORTON, Mr. CONYERS, Mr. AL

GREEN of Texas, Mr. RUSH, Ms. SEWELL of Alabama, Ms. FUDGE, Ms. 

EDDIE BERNICE JOHNSON of Texas, Mr. CUMMINGS, Mr. RANGEL, Mr. 

LEWIS, Mr. MEEKS, Mr. CLYBURN, Mr. RICHMOND, Mr. PAYNE, Mr. 

CARSON of Indiana, Ms. CLARKE of New York, Ms. SCHAKOWSKY, Ms. 

KAPTUR, Mr. CROWLEY, Mr. HONDA, Mr. ELLISON, Mr. SCOTT of Virginia, Ms. HAHN, Mr. HINOJOSA, Ms. CHU, Mr. GRIJALVA, Mrs. 

BEATTY, Mr. HUFFMAN, Ms. MOORE, Mr. VEASEY, Ms. ROYBALALLARD, Mrs. CHRISTENSEN, Mr. CLEAVER, Mr. BUTTERFIELD, and Ms. 

JACKSON LEE) introduced the following bill; which was referred to the 

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

House Administration, Education and the Workforce, Financial Services, 

Agriculture, Transportation and Infrastructure, Rules, the Budget, Oversight and Government Reform, and the Judiciary, 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 strengthen and expand proven anti-poverty programs and 

initiatives. 

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 ‘‘Pathways Out of Pov3 erty Act of 2014’’. 

4 SEC. 2. TABLE OF CONTENTS. 

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

Sec. 1. Short title. 

Sec. 2. Table of contents. 

DIVISION A—EDUCATION 

TITLE I—STRONG START FOR AMERICA’S CHILDREN 

Subtitle A—Access to Voluntary Prekindergarten for Low- and ModerateIncome Families 

Sec. 111. Purposes. 

Sec. 112. Definitions. 

Sec. 113. Program authorization. 

Sec. 114. Allotments and reservations of funds. 

Sec. 115. State eligibility criteria. 

Sec. 116. State applications. 

Sec. 117. State use of funds. 

Sec. 118. Additional prekindergarten services. 

Sec. 119. Performance measures and targets. 

Sec. 120. Matching requirements. 

Sec. 121. Eligible local entity applications. 

Sec. 122. Required subgrant activities. 

Sec. 123. Report and evaluation. 

Sec. 124. Prohibition of required participation or use of funds for assessments. 

Sec. 125. Coordination with Head Start programs. 

Sec. 126. Technical assistance in program administration. 

Sec. 127. Authorization of appropriations. 

Subtitle B—Prekindergarten Development Grants 

Sec. 151. Prekindergarten development grants. 

TITLE II—RESTORING SUMMER PELL GRANTS 

Sec. 201. Federal Pell Grants. 

TITLE III—RESTORING TITLE IV ABILITY-TO-BENEFIT 

ELIGIBILITY 

Sec. 301. Ability-to-benefit eligibility. 

TITLE IV—YOUTH PROMISE/FEDERAL COORDINATION OF LOCAL 

AND TRIBAL JUVENILE JUSTICE INFORMATION AND EFFORTS 

Sec. 401. PROMISE Advisory Panel. 

Sec. 402. Geographic assessment of resource allocation. 


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TITLE V—PROMISE GRANTS 

Sec. 501. Purposes. 

Sec. 502. Definitions. 

Subtitle A—PROMISE Assessment and Planning Grants 

Sec. 510. PROMISE Assessment and Planning grants authorized. 

Sec. 511. PROMISE Coordinating Councils. 

Sec. 512. Needs and strengths assessment. 

Sec. 513. PROMISE Plan components. 

Sec. 514. Authorization of appropriations. 

Subtitle B—PROMISE Implementation Grants 

Sec. 530. PROMISE Implementation grants authorized. 

Sec. 531. PROMISE Implementation grant application requirements. 

Sec. 532. Grant award guidelines. 

Sec. 533. Reports. 

Sec. 534. Authorization of appropriations. 

Subtitle C—General PROMISE Grant Provisions 

Sec. 540. Nonsupplanting clause. 

Sec. 541. Grant application review panel. 

Sec. 542. Evaluation of PROMISE grant programs. 

DIVISION B—HOUSING 

TITLE VI—COMMON SENSE HOUSING INVESTMENT 

Sec. 601. Congressional findings. 

Sec. 602. Replacement of mortgage interest deduction with mortgage interest 

credit. 

Sec. 603. Deduction allowed for interest and taxes relating to land for dwelling 

purposes owned or leased by cooperative housing corporations. 

Sec. 604. Use of mortgage interest savings to increase low-income housing tax 

credit. 

Sec. 605. Use of mortgage interest savings for affordable housing programs. 

TITLE VII—LOW-INCOME HOUSING TAX CREDIT FOR HOMELESS 

YOUTH 

Sec. 701. Students who were homeless youths or homeless veterans permitted 

to occupy low-income housing units. 

TITLE VIII—RENTERS TAX CREDIT 

Sec. 801. Renters tax credit. 

DIVISION C—NUTRITION 

TITLE IX—IMPROVING TEMPORARY ASSISTANCE TO NEEDY 

FAMILIES PROGRAM 

Sec. 901. References. 

Sec. 902. State plans required to address whether and how States will provide 

assistance to neediest geographic areas. 

Sec. 903. Funding of the TANF program. 


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Sec. 904. Work requirements. 

Sec. 905. Work rules. 

Sec. 906. Prohibition on imposing limit of less than 60 months on duration of 

assistance. 

Sec. 907. Response of TANF program to economic recessions. 

Sec. 908. Requirement that States use merit-based system in administration of 

TANF programs. 

Sec. 909. Ban on using Federal TANF funds to replace State and local spending that does not meet the definition of qualified State expenditures. 

Sec. 910. TANF assistance to meet basic family economic needs. 

Sec. 911. State plans and reports on child poverty. 

Sec. 912. Requirement that States adopt standards and procedures to address 

domestic and sexual violence among TANF recipients. 

Sec. 913. Child care entitlement. 

Sec. 914. Child support enforcement. 

Sec. 915. State option to extend eligibility for assistance to children through 

age 21; prohibition on considering financial aid tied to education of child in determining eligibility for, or amount of assistance; prohibition on imposing additional requirements based 

on educational enrollment of child. 

Sec. 916. Elimination of certain other bars to TANF assistance. 

Sec. 917. Effective date. 

TITLE X—EMPLOYMENT ADVANCEMENT, RETENTION, AND 

NAVIGATION ACT 

Sec. 1011. Focus on employment. 

Sec. 1012. Modification relating to the Contingency Fund. 

Sec. 1013. Training for in-demand jobs. 

Sec. 1014. Effective date. 

TITLE XI—RESTORING SUPPLEMENTAL NUTRITION ASSISTANCE 

PROGRAMS FUNDING CUTS INSTITUTED IN FARM BILL (HEATAND-EAT) 

Sec. 1101. Restoration of standard utility allowances based on the receipt of 

energy assistance payments. 

TITLE XII—HELPING HUNGRY STUDENTS LEARN 

Sec. 1201. Findings. 

Sec. 1202. School Lunch Program. 

Sec. 1203. School Breakfast Program. 

Sec. 1204. Summer Electronic Benefits Transfer for Children program. 

Sec. 1205. Weekends and holidays without hunger. 

TITLE XIII—FOOD ASSISTANCE TO IMPROVE REINTEGRATION 

ACT 

Sec. 1301. Repeal of denial of benefits. 

DIVISION D—LABOR/JOB TRAINING 

TITLE XV—ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS 

BACK TO WORK 


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Subtitle A—Supporting Unemployed Workers 

Sec. 1501. Short title. 

PART I—EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND

CERTAIN EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT OF

SELF-EMPLOYMENT ASSISTANCE PROGRAM

Sec. 1511. Extension of Emergency Unemployment Compensation program. 

Sec. 1512. Temporary extension of extended benefit provisions. 

Sec. 1513. Additional extended unemployment benefits under the Railroad Unemployment Insurance Act. 

PART II—REEMPLOYMENT NOW PROGRAM

Sec. 1521. Establishment of Reemployment NOW program. 

Sec. 1522. Distribution of funds. 

Sec. 1523. State plan. 

Sec. 1524. Bridge to Work program. 

Sec. 1525. Wage insurance. 

Sec. 1526. Enhanced reemployment strategies. 

Sec. 1527. Self-employment programs. 

Sec. 1528. Additional innovative programs. 

Sec. 1529. Guidance and additional requirements. 

Sec. 1530. Report of information and evaluations to Congress and the public. 

Sec. 1531. State. 

PART III—SHORT-TIME COMPENSATION PROGRAM

Sec. 1541. Temporary financing of short-time compensation payments in States 

with programs in law. 

Sec. 1542. Temporary financing of short-time compensation agreements. 

Sec. 1543. Grants for short-time compensation programs. 

Sec. 1544. Assistance and guidance in implementing programs. 

Sec. 1545. Reports. 

Subtitle B—Long-Term Unemployed Hiring Preferences 

Sec. 1551. Long-term unemployed workers work opportunity tax credits. 

Subtitle C—Pathways Back to Work 

Sec. 1561. Short title. 

Sec. 1562. Authorization of appropriations. 

Sec. 1563. Availability of funds. 

Sec. 1564. Subsidized employment for unemployed, low-income adults. 

Sec. 1565. Summer employment and year-round employment opportunities for 

low-income youth. 

Sec. 1566. Work-based employment strategies of demonstrated effectiveness. 

Sec. 1567. General requirements. 

Sec. 1568. Definitions. 

Subtitle D—Prohibition of Discrimination in Employment on the Basis of an 

Individual’s Status as Unemployed 

Sec. 1571. Short title. 

Sec. 1572. Findings and purpose. 

Sec. 1573. Definitions. 


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Sec. 1574. Prohibited acts. 

Sec. 1575. Enforcement. 

Sec. 1576. Federal and State immunity. 

Sec. 1577. Relationship to other laws. 

Sec. 1578. Severability. 

Sec. 1579. Effective date. 

TITLE XVI—LIVING AMERICAN WAGE 

Sec. 1601. Findings; sense of Congress. 

Sec. 1602. Minimum wage. 

TITLE XVII—EMERGENCY UNEMPLOYMENT COMPENSATION 

EXTENSION 

Sec. 1701. Extension of Emergency Unemployment Compensation program. 

Sec. 1702. Temporary extension of extended benefit provisions. 

Sec. 1703. Extension of funding for reemployment services and reemployment 

and eligibility assessment activities. 

Sec. 1704. Additional extended unemployment benefits under the Railroad Unemployment Insurance Act. 

Sec. 1705. Flexibility for unemployment program agreements. 

DIVISION E—ANTI-POVERTY TAX PROVISION 

TITLE XVIII—CHILD TAX CREDIT PERMANENCY 

Sec. 1801. Modifications of the child tax credit. 

TITLE XIX—EARNED INCOME TAX CREDIT 

Sec. 1901. Expansion of Earned Income Credit. 

TITLE XX—CHILD CARE ACCESS AND REFUNDABILITY 

EXPANSION ACT 

Sec. 2001. Credit for dependent care expenses. 

DIVISION F—MISCELLANEOUS 

TITLE XXI—POVERTY IMPACT TRIGGER 

Sec. 2101. Certain poverty impact legislation subject to point of order. 

Sec. 2102. Congressional Budget Office Poverty Impact Division. 

Sec. 2103. Exercise of rulemaking powers. 

Sec. 2104. Effective date. 

TITLE XXII—HALF IN TEN ACT TO CREATE A NATIONAL 

STRATEGY TO REDUCE POVERTY 

Sec. 2201. Findings. 

Sec. 2202. Definitions. 

Sec. 2203. Establishment of the Federal Interagency Working Group on Reducing Poverty. 

Sec. 2204. Appointment and responsibilities of the Director. 

Sec. 2205. Consultation. 

Sec. 2206. Reports to Congress and the public. 


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1 DIVISION A—EDUCATION 

2 TITLE I—STRONG START FOR 

3 AMERICA’S CHILDREN 

4 Subtitle A—Access to Voluntary 

5 Prekindergarten for Low- and 

6 Moderate-Income Families 

7 SEC. 111. PURPOSES. 

8 The purposes of this subtitle are to— 

9 (1) establish a Federal-State partnership to 

10 provide access to high-quality public prekindergarten 

11 programs for all children from low-income and mod12 erate-income families to ensure that they enter kin13 dergarten prepared for success; 

14 (2) broaden participation in such programs to 

15 include children from additional middle-class fami16 lies; and 

17 (3) promote access to high-quality kindergarten, 

18 and high-quality early childhood education programs 

19 and settings for children. 

20 SEC. 112. DEFINITIONS. 

21 In this subtitle: 

22 (1) CHILD WITH A DISABILITY.—The term 

23 ‘‘child with a disability’’ has the meaning given the 

24 term in section 602 of the Individuals with Disabil25 ities Education Act (20 U.S.C. 1401). 


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1 (2) COMPREHENSIVE EARLY LEARNING ASSESS2 MENT SYSTEM.—The term ‘‘comprehensive early 

3 learning assessment system’’— 

4 (A) means a coordinated and comprehen5 sive system of multiple assessments, each of 

6 which is valid and reliable for its specified pur7 pose and for the population with which it will 

8 be used, that— 

9 (i) organizes information about the 

10 process and context of young children’s 

11 learning and development to help early 

12 childhood educators make informed in13 structional and programmatic decisions; 

14 and 

15 (ii) conforms to the recommendations 

16 of the National Research Council reports 

17 on early childhood; and 

18 (B) includes, at a minimum— 

19 (i) child screening measures; 

20 (ii) child formative assessments; 

21 (iii) measures of environmental qual22 ity; and 

23 (iv) measures of the quality of adult24 child interactions. 


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1 (3) DUAL LANGUAGE LEARNER.—The term 

2 ‘‘dual language learner’’ means an individual who is 

3 limited English proficient. 

4 (4) EARLY CHILDHOOD EDUCATION PRO5 GRAM.—The term ‘‘early childhood education pro6 gram’’ has the meaning given the term under section 

7 103 of the Higher Education Act of 1965 (20 

8 U.S.C. 1003). 

9 (5) ELEMENTARY SCHOOL.—The term ‘‘elemen10 tary school’’ has the meaning given the term in sec11 tion 9101 of the Elementary and Secondary Edu12 cation Act of 1965 (20 U.S.C. 7801). 

13 (6) ELIGIBILITY DETERMINATION DATE.—The 

14 term ‘‘eligibility determination date’’ means the date 

15 used to determine eligibility for public elementary 

16 school in the community in which the eligible local 

17 entity involved is located. 

18 (7) ELIGIBLE LOCAL ENTITY.—The term ‘‘eligi19 ble local entity’’ means— 

20 (A) a local educational agency, including— 

21 (i) a charter school or a charter man22 agement organization that acts as a local 

23 educational agency; or 


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1 (ii) an educational service agency in 

2 partnership with a local educational agen3 cy; 

4 (B) an entity that carries out an early 

5 childhood education program; or 

6 (C) a consortium of entities described in 

7 subparagraph (A) or (B). 

8 (8) FULL-DAY.—The term ‘‘full-day’’ means a 

9 day that is— 

10 (A) equivalent to a full school day at the 

11 public elementary schools in a State; and 

12 (B) not less than 5 hours a day. 

13 (9) HIGH-QUALITY PREKINDERGARTEN PRO14 GRAM.—The term ‘‘high-quality prekindergarten 

15 program’’ means a prekindergarten program sup16 ported by an eligible local entity that includes, at a 

17 minimum, the following elements based on nationally 

18 recognized standards: 

19 (A) Serves children who— 

20 (i) are age 4 or children who are age 

21 3 or 4, by the eligibility determination date 

22 (including children who turn age 5 while 

23 attending the program); or 

24 (ii) have attained the legal age for 

25 State-funded prekindergarten. 


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1 (B) Requires high qualifications for staff, 

2 including that teachers meet the requirements 

3 of 1 of the following clauses: 

4 (i) The teacher has a bachelor’s de5 gree in early childhood education or a re6 lated field with coursework that dem7 onstrates competence in early childhood 

8 education. 

9 (ii) The teacher— 

10 (I) has a bachelor’s degree in any 

11 field; 

12 (II) has demonstrated knowledge 

13 of early childhood education by pass14 ing a State-approved assessment in 

15 early childhood education; 

16 (III) while employed as a teacher 

17 in the prekindergarten program, is en18 gaged in on-going professional devel19 opment in early childhood education 

20 for not less than 2 years; and 

21 (IV) not more than 3 years after 

22 starting employment as a teacher in 

23 the prekindergarten program, enrolls 

24 in and completes a State-approved ed25 ucator preparation program in which 


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1 the teacher receives training and sup2 port in early childhood education. 

3 (iii) The teacher has bachelor’s degree 

4 with a credential, license, or endorsement 

5 that demonstrates competence in early 

6 childhood education. 

7 (C) Maintains an evidence-based maximum 

8 class size. 

9 (D) Maintains an evidence-based child to 

10 instructional staff ratio. 

11 (E) Offers a full-day program. 

12 (F) Provides developmentally appropriate, 

13 evidence-based curricula and learning environ14 ments that are aligned with the State’s early 

15 learning and development standards described 

16 in section 115(1). 

17 (G) Offers instructional staff salaries com18 parable to kindergarten through grade 12 

19 teaching staff. 

20 (H) Provides for ongoing monitoring and 

21 program evaluation to ensure continuous im22 provement. 

23 (I) Offers accessible comprehensive services 

24 for children that include, at a minimum— 


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1 (i) screenings for vision, dental, health 

2 (including mental health), and development 

3 and referrals, and assistance obtaining 

4 services, when appropriate; 

5 (ii) family engagement opportunities 

6 that take into account home language, 

7 such as parent conferences (including par8 ent input about their child’s development) 

9 and support services, such as parent edu10 cation; 

11 (iii) nutrition services, including nutri12 tious meals and snack options aligned with 

13 requirements set by the most recent Child 

14 and Adult Care Food Program guidelines 

15 promulgated by the Department of Agri16 culture as well as regular, age-appropriate, 

17 nutrition education for children and their 

18 families; 

19 (iv) programs coordinated with local 

20 educational agencies and entities providing 

21 programs authorized under section 619 

22 and part C of the Individuals with Disabil23 ities Education Act (20 U.S.C. 1419 and 

24 1431 et seq.); 


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1 (v) physical activity programs aligned 

2 with evidence-based guidelines, such as 

3 those recommended by the Institute of 

4 Medicine, and which take into account and 

5 accommodate children with disabilities; 

6 (vi) additional support services, as ap7 propriate, based on the findings of the 

8 needs analysis as described in section 120; 

9 and 

10 (vii) on-site coordination, to the max11 imum extent feasible. 

12 (J) Provides high-quality professional de13 velopment for all staff, including regular in14 classroom observation for teachers and teacher 

15 assistants by individuals trained in such obser16 vation. 

17 (K) Meets the education performance 

18 standards in effect under section 641A(a)(1)(B) 

19 of the Head Start Act (42 U.S.C. 

20 9836a(a)(1)(B)). 

21 (L) Maintains evidence-based health and 

22 safety standards. 

23 (10) GOVERNOR.—The term ‘‘Governor’’ means 

24 the chief executive officer of a State. 


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1 (11) HOMELESS CHILD.—The term ‘‘homeless 

2 child’’ means a child or youth described in section 

3 725(2) of the McKinney-Vento Homeless Assistance 

4 Act (42 U.S.C. 11434a(2). 

5 (12) INSTITUTION OF HIGHER EDUCATION.— 

6 The term ‘‘institution of higher education’’ has the 

7 meaning given the term in section 102 of the Higher 

8 Education Act of 1965 (20 U.S.C. 1002). 

9 (13) INDIAN TRIBE; TRIBAL ORGANIZATION.— 

10 The terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ 

11 have the meanings given the terms in 658P of the 

12 Child Care and Development Block Grant of 1990 

13 (42 U.S.C. 9858n). 

14 (14) LIMITED ENGLISH PROFICIENT.—The 

15 term ‘‘limited English proficient’’ has the meaning 

16 given the term in section 637 of the Head Start Act 

17 (42 U.S.C. 9832). 

18 (15) LOCAL EDUCATIONAL AGENCY; STATE

19 EDUCATIONAL AGENCY; EDUCATIONAL SERVICE

20 AGENCY.—The terms ‘‘local educational agency’’, 

21 ‘‘State educational agency’’, and ‘‘educational service 

22 agency’’ have the meanings given the terms in sec23 tion 9101 of the Elementary and Secondary Edu24 cation Act of 1965 (20 U.S.C. 7801). 


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1 (16) MIGRATORY CHILD.—The term ‘‘migratory 

2 child’’ has the meaning given the term in section 

3 1309 of the Elementary and Secondary Education 

4 Act of 1965 (20 U.S.C. 6399). 

5 (17) OUTLYING AREA.—The term ‘‘outlying 

6 area’’ means each of the United States Virgin Is7 lands, Guam, American Samoa, the Commonwealth 

8 of the Northern Mariana Islands, and the Republic 

9 of Palau. 

10 (18) POVERTY LINE.—The term ‘‘poverty line’’ 

11 means the official poverty line (as defined by the Of12 fice of Management and Budget)— 

13 (A) adjusted to reflect the percentage 

14 change in the Consumer Price Index for All 

15 Urban Consumers published by the Bureau of 

16 Labor Statistics of the Department of Labor 

17 for the most recent 12-month period or other 

18 interval for which the data are available; and 

19 (B) applicable to a family of the size in20 volved. 

21 (19) SECONDARY SCHOOL.—The term ‘‘sec22 ondary school’’ has the meaning given the term in 

23 section 9101 of the Elementary and Secondary Edu24 cation Act of 1965 (20 U.S.C. 7801). 


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1 (20) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of Education. 

3 (21) STATE.—Except as otherwise provided in 

4 this subtitle, the term ‘‘State’’ means each of the 50 

5 States, the District of Columbia, the Commonwealth 

6 of Puerto Rico, and each of the outlying areas. 

7 (22) STATE ADVISORY COUNCIL ON EARLY

8 CHILDHOOD EDUCATION AND CARE.—The term 

9 ‘‘State Advisory Council on Early Childhood Edu10 cation and Care’’ means the State Advisory Council 

11 on Early Childhood Education and Care established 

12 under section 642B(b) of the Head Start Act (42 

13 U.S.C. 9837b(b)). 

14 SEC. 113. PROGRAM AUTHORIZATION. 

15 From amounts made available to carry out this sub16 title, the Secretary, in consultation with the Secretary of 

17 Health and Human Services, shall award grants to States 

18 to implement high-quality prekindergarten programs, con19 sistent with the purposes of this subtitle described in sec20 tion 111. For each fiscal year, the funds provided under 

21 a grant by a State shall equal the allotment determined 

22 for the State under section 114. 


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1 SEC. 114. ALLOTMENTS AND RESERVATIONS OF FUNDS. 

2 (a) RESERVATION.—From the amount made avail3 able each fiscal year to carry out this subtitle, the Sec4 retary shall— 

5 (1) reserve not less than 1 percent and not 

6 more than 2 percent for payments to Indian tribes 

7 and tribal organizations; 

(2) reserve 1 8 ⁄2 of 1 percent for the outlying 

9 areas to be distributed among the outlying areas on 

10 the basis of their relative need, as determined by the 

11 Secretary in accordance with the purposes of this 

12 subtitle; 

(3) reserve 1 13 ⁄2 of 1 percent for eligible local en14 tities that serve children in families who are engaged 

15 in migrant or seasonal agricultural labor; and 

16 (4) reserve not more than 1 percent or 

17 $30,000,000, whichever amount is less, for national 

18 activities, including administration, technical assist19 ance, and evaluation. 

20 (b) ALLOTMENTS.— 

21 (1) IN GENERAL.—From the amount made 

22 available each fiscal year to carry out this subtitle 

23 and not reserved under subsection (a), the Secretary 

24 shall make allotments to States in accordance with 

25 paragraph (2) that have submitted an approved ap26 plication. 


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1 (2) ALLOTMENT AMOUNT.— 

2 (A) IN GENERAL.—Subject to subpara3 graph (B), the Secretary shall allot the amount 

4 made available under paragraph (1) for a fiscal 

5 year among the States in proportion to the 

6 number of children who are age 4 who reside 

7 within the State and are from families with in8 comes at or below 200 percent of the poverty 

9 line for the most recent year for which satisfac10 tory data are available, compared to the num11 ber of such children who reside in all such 

12 States for that fiscal year. 

13 (B) MINIMUM ALLOTMENT AMOUNT.—No 

14 State receiving an allotment under subparagraph (A) may receive less than 1 15 ⁄2 of 1 percent 

16 of the total amount allotted under such sub17 paragraph. 

18 (3) REALLOTMENT AND CARRY OVER.— 

19 (A) IN GENERAL.—If one or more States 

20 do not receive an allotment under this sub21 section for any fiscal year, the Secretary may 

22 use the amount of the allotment for that State 

23 or States, in such amounts as the Secretary de24 termines appropriate, for either or both of the 

25 following: 


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1 (i) To increase the allotments of 

2 States with approved applications for the 

3 fiscal year, consistent with subparagraph 

4 (B). 

5 (ii) To carry over the funds to the 

6 next fiscal year. 

7 (B) REALLOTMENT.—In increasing allot8 ments under subparagraph (A)(i), the Secretary 

9 shall allot to each State with an approved appli10 cation an amount that bears the same relation11 ship to the total amount to be allotted under 

12 subparagraph (A)(i), as the amount the State 

13 received under paragraph (2) for that fiscal 

14 year bears to the amount that all States re15 ceived under paragraph (2) for that fiscal year. 

16 (4) STATE.—For purposes of this subsection, 

17 the term ‘‘State’’ means each of the 50 States, the 

18 District of Columbia, and the Commonwealth of 

19 Puerto Rico. 

20 (c) FLEXIBILITY.—The Secretary may make minimal 

21 adjustments to allotments under this subsection, which 

22 shall neither lead to a significant increase or decrease in 

23 a State’s allotment determined under subsection (b), based 

24 on a set of factors, such as the level of program participaVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 tion and the estimated cost of the activities specified in 

2 the State plan under section 116(a)(2). 

3 SEC. 115. STATE ELIGIBILITY CRITERIA. 

4 A State is eligible to receive a grant under this sub5 title if the State demonstrates to the Secretary that the 

6 State— 

7 (1) has established or will establish early learn8 ing and development standards that describe what 

9 children from birth to kindergarten entry should 

10 know and be able to do, are universally designed and 

11 developmentally, culturally, and linguistically appro12 priate, are aligned with the State’s challenging aca13 demic content standards and challenging student 

14 academic achievement standards, as adopted under 

15 section 1111(b)(1) of the Elementary and Secondary 

16 Education Act of 1965 (20 U.S.C. 6311(b)(1)), and 

17 cover the essential domains of school readiness, 

18 which address— 

19 (A) physical well-being and motor develop20 ment; 

21 (B) social and emotional development; 

22 (C) approaches to learning, including cre23 ative arts expression; 

24 (D) developmentally appropriate oral and 

25 written language and literacy development; and 


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1 (E) cognition and general knowledge, in2 cluding early mathematics and early scientific 

3 development; 

4 (2) has the ability or will develop the ability to 

5 link prekindergarten data with its elementary school 

6 and secondary school data for the purpose of col7 lecting longitudinal information for all children par8 ticipating in the State’s high-quality prekindergarten 

9 program and any other federally funded early child10 hood program that will remain with the child 

11 through the child’s public education through grade 

12 12; 

13 (3) offers State-funded kindergarten for chil14 dren who are eligible children for that service in the 

15 State; and 

16 (4) has established a State Advisory Council on 

17 Early Childhood Education and Care. 

18 SEC. 116. STATE APPLICATIONS. 

19 (a) IN GENERAL.—To receive a grant under this sub20 title, the Governor of a State, in consultation with the In21 dian tribes and tribal organizations in the State, if any, 

22 shall submit an application to the Secretary at such time, 

23 in such manner, and containing such information as the 

24 Secretary may reasonably require. At a minimum, each 

25 such application shall include— 


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1 (1) an assurance that the State— 

2 (A) will coordinate with and continue to 

3 participate in the programs authorized under 

4 section 619 and part C of the Individuals with 

5 Disabilities Education Act (20 U.S.C. 1419 and 

6 1431 et seq.), the Child Care and Development 

7 Block Grant Act of 1990 (42 U.S.C. 9858 et 

8 seq.), and the maternal, infant, and early child9 hood home visiting programs funded under sec10 tion 511 of the Social Security Act (42 U.S.C. 

11 711) for the duration of the grant; 

12 (B) will designate a State-level entity (such 

13 as an agency or joint interagency office), se14 lected by the Governor, for the administration 

15 of the grant, which shall coordinate and consult 

16 with the State educational agency if the entity 

17 is not the State educational agency; and 

18 (C) will establish, or certify the existence 

19 of, program standards for all State prekinder20 garten programs consistent with the definition 

21 of a high-quality prekindergarten program 

22 under section 112; 

23 (2) a description of the State’s plan to— 

24 (A) use funds received under this subtitle 

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1 quality prekindergarten programs, in accord2 ance with section 117(d), with open enrollment 

3 for all children in the State who— 

4 (i) are described in section 112(9)(A); 

5 and 

6 (ii) are from families with incomes at 

7 or below 200 percent of the poverty line; 

8 (B) develop or enhance a system for moni9 toring eligible local entities that are receiving 

10 funds under this subtitle for compliance with 

11 quality standards developed by the State and to 

12 provide program improvement support, which 

13 may be accomplished through the use of a 

14 State-developed system for quality rating and 

15 improvement; 

16 (C) if applicable, expand participation in 

17 the State’s high-quality prekindergarten pro18 grams to children from families with incomes 

19 above 200 percent of the poverty line; 

20 (D) carry out the State’s comprehensive 

21 early learning assessment system, or how the 

22 State plans to develop such a system, ensuring 

23 that any assessments are culturally, develop24 mentally, and age-appropriate and consistent 

25 with the recommendations from the study on 


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1 Developmental Outcomes and Assessments for 

2 Young Children by the National Academy of 

3 Sciences, consistent with section 649(j) of the 

4 Head Start Act (42 U.S.C. 9844); 

5 (E) develop, implement, and make publicly 

6 available the performance measures and targets 

7 described in section 119; 

8 (F) increase the number of teachers with 

9 bachelor’s degrees in early childhood education, 

10 or with bachelor’s degrees in another closely re11 lated field and specialized training in early 

12 childhood education, including how institutions 

13 of higher education will support increasing the 

14 number of teachers with such degrees and 

15 training, including through the use of assess16 ments of prior learning, knowledge, and skills 

17 to facilitate and expedite attainment of such de18 grees; 

19 (G) coordinate and integrate the activities 

20 funded under this subtitle with Federal, State, 

21 and local services and programs that support 

22 early childhood education and care, including 

23 programs supported under this subtitle, the El24 ementary and Secondary Education Act of 1965 

25 (20 U.S.C. 6301 et seq.), the Individuals with 


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1 Disabilities Education Act (20 U.S.C. 1400 et 

2 seq.), the Head Start Act (42 U.S.C. 9831 et 

3 seq.), the Community Services Block Grant Act 

4 (42 U.S.C. 9901 et seq.), the Child Care and 

5 Development Block Grant Act of 1990 (42 

6 U.S.C. 9858 et seq.), the temporary assistance 

7 for needy families program under part A of title 

8 IV of the Social Security Act (42 U.S.C. 601 et 

9 seq.), the State incentive grant program under 

10 section 14006 of the American Recovery and 

11 Reinvestment Act of 2009 (Public Law 111–5), 

12 federally funded early literacy programs, the 

13 maternal, infant, and early childhood home vis14 iting programs funded under section 511 of the 

15 Social Security Act (42 U.S.C. 711), health im16 provements to child care funded under title 

17 XIX of the Social Security Act (42 U.S.C. 1396 

18 et seq.), the program under subtitle B of title 

19 VII of the McKinney-Vento Homeless Assist20 ance Act (42 U.S.C. 11431 et seq.), the Invest21 ing In Innovation program under section 14007 

22 of the American Recovery and Reinvestment 

23 Act of 2009 (Public Law 111–5), programs au24 thorized under part E of title IV of the Social 

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1 tering Connections to Success and Increasing 

2 Adoptions Act of 2008 (Public Law 110–351), 

3 and any other Federal, State, or local early 

4 childhood education programs used in the 

5 State; 

6 (H) award subgrants to eligible local enti7 ties, and in awarding such subgrants, facilitate 

8 a delivery system of high-quality prekinder9 garten programs that includes diverse pro10 viders, such as providers in community-based, 

11 public school, and private settings, and consider 

12 the system’s impact on options for families; 

13 (I) in the case of a State that does not 

14 have a funding mechanism for subgranting 

15 funds to implement high-quality prekinder16 garten, use objective criteria in awarding sub17 grants to eligible local entities that will imple18 ment high-quality prekindergarten programs, 

19 including actions the State will take to ensure 

20 that eligible local entities will coordinate with 

21 local educational agencies or other early learn22 ing providers, as appropriate, to carry out ac23 tivities to provide children served under this 

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1 school into kindergarten, which activities shall 

2 include— 

3 (i) aligning curricular objectives and 

4 instruction; 

5 (ii) providing staff professional devel6 opment, including opportunities for joint7 professional development on early learning 

8 and kindergarten through grade 3 stand9 ards, assessments, and curricula; 

10 (iii) coordinating family engagement 

11 and support services; and 

12 (iv) encouraging the shared use of fa13 cilities and transportation, as appropriate; 

14 (J) use the State early learning and devel15 opment standards described in section 115(1) 

16 to address the needs of dual language learners, 

17 including by incorporating benchmarks related 

18 to English language development; 

19 (K) identify barriers, and propose solutions 

20 to overcome such barriers, which may include 

21 seeking assistance under section 126, in the 

22 State to effectively use and integrate Federal, 

23 State, and local public funds and private funds 

24 for early childhood education that are available 


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1 to the State on the date on which the applica2 tion is submitted; 

3 (L) support articulation agreements (as 

4 defined in section 486A of the Higher Edu5 cation Act of 1965 (20 U.S.C. 1093a)) between 

6 public 2-year and public 4-year institutions of 

7 higher education in the State for early child8 hood teacher preparation programs and related 

9 fields; 

10 (M) ensure that the higher education pro11 grams in the State have the capacity to prepare 

12 a workforce to provide high-quality prekinder13 garten programs; 

14 (N) support workforce development, in15 cluding State and local policies that support 

16 prekindergarten instructional staff’s ability to 

17 earn a degree, certification, or other specializa18 tions or qualifications, including policies on 

19 leave, substitutes, and child care services, in20 cluding non-traditional hour child care; 

21 (O) hold eligible local entities accountable 

22 for use of funds; 

23 (P) ensure that the State’s early learning 

24 and development standards are integrated into 

25 the instructional and programmatic practices of 


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1 high-quality prekindergarten programs and re2 lated programs and services, such as those pro3 vided to children under section 619 and part C 

4 of the Individuals with Disabilities Education 

5 Act (20 U.S.C. 1419 and 1431 et seq.); 

6 (Q) increase the number of children in the 

7 State who are enrolled in high-quality kinder8 garten programs and carry out a strategy to 

9 implement such a plan; 

10 (R) coordinate the State’s activities sup11 ported by grants under this subtitle with activi12 ties in State plans required under the Elemen13 tary and Secondary Education Act of 1965 (20 

14 U.S.C. 6301 et seq.), the Individuals with Dis15 abilities Education Act (20 U.S.C. 1400 et 

16 seq.), the Head Start Act (42 U.S.C. 9831 et 

17 seq.), the Child Care and Development Block 

18 Grant Act of 1990 (42 U.S.C. 9858 et seq.), 

19 and the Adult Education and Family Literacy 

20 Act (20 U.S.C. 9201 et seq.); 

21 (S) encourage eligible local entities to co22 ordinate with community-based learning re23 sources, such as libraries, arts and arts edu24 cation programs, appropriate media programs, 

25 family literacy programs, public parks and 


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1 recreation programs, museums, nutrition edu2 cation programs, and programs supported by 

3 the Corporation for National and Community 

4 Service; 

5 (T) work with eligible local entities, in con6 sultation with elementary school principals, to 

7 ensure that high-quality prekindergarten pro8 grams have sufficient facilities to meet the 

9 needs of children eligible for prekindergarten; 

10 (U) support local early childhood coordi11 nating entities, such as local early childhood 

12 councils, if applicable, and help such entities to 

13 coordinate early childhood education programs 

14 with high-quality prekindergarten programs to 

15 ensure effective and efficient delivery of early 

16 childhood education program services; 

17 (V) ensure that the provision of high-qual18 ity prekindergarten programs will not lead to a 

19 diminution of services for infants and toddlers 

20 or disrupt the care of infants and toddlers in 

21 the geographic area served by the eligible local 

22 entity, which may include demonstrating that 

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1 fants and toddlers in accordance with section 

2 117(d); and 

3 (W) ensure that all high-quality prekinder4 garten programs the State supports under this 

5 Act will conduct criminal history background 

6 checks that meet the requirements of subsection 

7 (b) on employees and applicants for employ8 ment with direct access to children; and 

9 (3) an inventory of the State’s higher education 

10 programs that prepare individuals for work in a 

11 high-quality prekindergarten program, including— 

12 (A) certification programs; 

13 (B) associate degree programs; 

14 (C) baccalaureate degree programs; 

15 (D) master’s degree programs; and 

16 (E) other programs that lead to a speciali17 zation in early childhood education, or a related 

18 field. 

19 (b) CRIMINAL HISTORY BACKGROUND CHECKS.— 

20 (1) IN GENERAL.—The criminal history back21 ground checks required under subsection (a)(2)(Z) 

22 shall include— 

23 (A) a search of the State criminal registry 

24 or repository in the State in which the employee 

25 resides and previously resided; 


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1 (B) a search of the State-based child abuse 

2 and neglect registries and databases in the 

3 State in which the employee resides and pre4 viously resided; 

5 (C) a Federal Bureau of Investigation fin6 gerprint check using the Integrated Automated 

7 Fingerprint Identification System; and 

8 (D) a search of the National Sex Offender 

9 Registry established under section 119 of the 

10 Adam Walsh Child Protection and Safety Act of 

11 2006 (42 U.S.C. 16919). 

12 (2) PROHIBITION OF EMPLOYMENT.—To be eli13 gible to receive a grant under this subtitle, a State 

14 shall prohibit an individual with direct access to chil15 dren from employment with a program supported 

16 with grant funds under this subtitle if the individual 

17 has been convicted of a violent felony or any violent 

18 or sexual crime against a minor, as defined by the 

19 State. 

20 (3) UPDATED CHECKS.—To be eligible to re21 ceive a grant under this subtitle, each criminal his22 tory background check conducted on an employee as 

23 required under subsection (a)(2)(Z) shall be periodi24 cally repeated or updated in accordance with State 

25 law. 


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1 (4) APPEAL PROCESS.—To be eligible to receive 

2 a grant under this subtitle, a State shall provide an 

3 individual with a timely process by which to— 

4 (A) appeal the results of a criminal history 

5 background check conducted under this section 

6 to challenge the accuracy or completeness of the 

7 information produced by such background 

8 check; and 

9 (B) seek appropriate relief for any final 

10 employment decision based on materially inac11 curate or incomplete information produced by 

12 such background check. 

13 (c) DEVELOPMENT OF APPLICATION.—In developing 

14 an application for a grant under this subtitle, a State shall 

15 consult with the State Advisory Council on Early Child16 hood Education and Care and incorporate such Council’s 

17 recommendations, where applicable. 

18 (d) CONSTRUCTION.—Nothing in this section shall be 

19 construed to alter or otherwise affect the rights, remedies, 

20 and procedures afforded school employees, local edu21 cational agency employees, and the employees of early 

22 childhood education programs under Federal, State, or 

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1 ments, memoranda of understanding, or other agreements 

2 between such employees and their employers. 

3 SEC. 117. STATE USE OF FUNDS. 

4 (a) RESERVATION FOR QUALITY IMPROVEMENT AC5 TIVITIES.— 

6 (1) IN GENERAL.—A State that receives a 

7 grant under this subtitle may reserve for, not more 

8 than the first 4 years such State receives such a 

9 grant, not more than 20 percent of the grant funds 

10 for quality improvement activities if such activities 

11 support the elements of high-quality prekindergarten 

12 programs. Such quality improvement activities may 

13 include supporting teachers and principals in a 

14 State’s high-quality prekindergarten program, li15 censed or regulated child care, or Head Start pro16 grams to enable such teachers to earn a bacca17 laureate degree in early childhood education, or 

18 closely related field, through activities which may in19 clude— 

20 (A) expanding or establishing scholarships, 

21 counseling, and compensation initiatives to 

22 cover the cost of tuition, fees, materials, trans23 portation, and release time for such teachers; 

24 and 


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1 (B) providing ongoing professional develop2 ment opportunities, including regular in-class3 room observation by individuals trained in such 

4 observation, for such teachers, principals, and 

5 teachers assistants to enable such teachers, 

6 principals, and teachers assistants to carry out 

7 the elements of high-quality prekindergarten 

8 programs, which may include activities that ad9 dress— 

10 (i) promoting children’s development 

11 across the essential domains of early learn12 ing and development; 

13 (ii) developmentally appropriate teach14 er-child interaction; 

15 (iii) effective family engagement; 

16 (iv) providing culturally competent in17 struction; 

18 (v) working with a diversity of chil19 dren and families, including children with 

20 special needs and dual language learners; 

21 (vi) childhood nutrition and physical 

22 education programs; and 

23 (vii) supporting the implementation of 

24 evidence-based curricula. 


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1 (2) NOT SUBJECT TO MATCHING.—The amount 

2 reserved under paragraph (1) shall not be subject to 

3 the matching requirements under section 120. 

4 (3) COORDINATION.—A State that reserves an 

5 amount under paragraph (1) shall coordinate the 

6 use of such amount with activities funded under sec7 tion 658G of the Child Care and Development Block 

8 Grant Act of 1990 (42 U.S.C. 9858e) and the Head 

9 Start Act (42 U.S.C. 9831 et seq.). 

10 (4) CONSTRUCTION.—A State may not use 

11 funds reserved under this subsection to meet the re12 quirement described in section 112(9)(G). 

13 (b) SUBGRANTS FOR HIGH-QUALITY PREKINDER14 GARTEN PROGRAMS.—A State that receives a grant under 

15 this subtitle shall award subgrants of sufficient size to eli16 gible local entities to enable such eligible local entities to 

17 implement high-quality prekindergarten programs for chil18 dren who— 

19 (1) are described in section 112(9)(A); 

20 (2) reside within the State; and 

21 (3) are from families with incomes at or below 

22 200 percent of the poverty line. 

23 (c) ADMINISTRATION.—A State that receives a grant 

24 under this subtitle may reserve not more than 1 percent 

25 of the grant funds for administration of the grant, and 


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1 may use part of that reservation for the maintenance of 

2 the State Advisory Council on Early Childhood Education 

3 and Care. 

4 (d) EARLY CHILDHOOD EDUCATION AND CARE PRO5 GRAMS FOR INFANTS AND TODDLERS.— 

6 (1) USE OF ALLOTMENT FOR INFANTS AND

7 TODDLERS.—An eligible State may apply to use, and 

8 the appropriate Secretary may grant permission for 

9 the State to use, not more than 15 percent of the 

10 funds made available through a grant received under 

11 this subtitle to award subgrants to early childhood 

12 education programs to provide, consistent with the 

13 State’s early learning and development guidelines for 

14 infants and toddlers, high-quality early childhood 

15 education and care to infants and toddlers who re16 side within the State and are from families with in17 comes at or below 200 percent of the poverty line. 

18 (2) APPLICATION.—To be eligible to use the 

19 grant funds as described in paragraph (1), the State 

20 shall submit an application to the appropriate Sec21 retary at such time, in such manner, and containing 

22 such information as the Secretary may require. Such 

23 application shall, at a minimum, include a descrip24 tion of how the State will— 


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1 (A) designate a lead agency which shall ad2 minister such funds; 

3 (B) ensure that such lead agency, in co4 ordination with the State’s Advisory Council on 

5 Early Childhood Education and Care, will col6 laborate with other agencies in administering 

7 programs supported under this subsection for 

8 infants and toddlers in order to obtain input 

9 about the appropriate use of such funds and en10 sure coordination with programs for infants and 

11 toddlers funded under the Child Care and De12 velopment Block Grant Act of 1990 (42 U.S.C. 

13 9858 et seq.), the Head Start Act (42 U.S.C. 

14 9831 et seq.) (including any Early Learning 

15 Quality Partnerships established in the State 

16 under section 645B of the Head Start Act, as 

17 added by section 202), the Race to the Top and 

18 Early Learning Challenge program under sec19 tion 14006 of Public Law 111–5 (123 Stat. 

20 283), the maternal, infant, and early childhood 

21 home visiting programs funded under section 

22 511 of the Social Security Act (42 U.S.C. 711), 

23 and part C of the Individuals with Disabilities 

24 Education Act (20 U.S.C. 1431 et seq.); 


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1 (C) ensure that infants and toddlers who 

2 benefit from amounts made available under this 

3 subsection will transition to and have the oppor4 tunity to participate in a high-quality pre5 kindergarten program supported under this 

6 subtitle; 

7 (D) in awarding subgrants, give preference 

8 to early childhood education programs that 

9 have a plan to increase services to children with 

10 special needs, including children with develop11 mental delays or disabilities, children who are 

12 dual language learners, homeless children, chil13 dren who are in foster care, children of migrant 

14 families, children eligible for free or reduced15 price lunch under the Richard B. Russell Na16 tional School Lunch Act (42 U.S.C. 1751 et 

17 seq.), or children in the child welfare system; 

18 and 

19 (E) give priority to activities carried out 

20 under this subsection that will increase access 

21 to high-quality early childhood education pro22 grams for infants and toddlers in local areas 

23 with significant concentrations of low-income 

24 families that do not currently benefit from such 

25 programs. 


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1 (3) ELIGIBLE PROVIDERS.—A State may use 

2 the grant funds as described in paragraph (1) to 

3 serve infants and toddlers only by working with 

4 early childhood education program providers that— 

5 (A) offer full-day, full-year care, or other6 wise meet the needs of working families; and 

7 (B) meet high-quality standards, such as— 

8 (i) Early Head Start program per9 formance standards under the Head Start 

10 Act (42 U.S.C. 9831 et seq.); or 

11 (ii) high quality, demonstrated, valid, 

12 and reliable program standards that have 

13 been established through a national entity 

14 that accredits early childhood education 

15 programs. 

16 (4) FEDERAL ADMINISTRATION.— 

17 (A) IN GENERAL.—The Secretary of Edu18 cation shall bear responsibility for obligating 

19 and disbursing funds to support activities under 

20 this subsection and ensuring compliance with 

21 applicable laws and administrative require22 ments, subject to paragraph (3). 

23 (B) INTERAGENCY AGREEMENT.—The Sec24 retary of Education and the Secretary of 

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1 minister activities supported under this sub2 section on such terms as such Secretaries shall 

3 set forth in an interagency agreement. The Sec4 retary of Health and Human Services shall be 

5 responsible for any final approval of a State’s 

6 application under this subsection that addresses 

7 the use of funds designated for services to in8 fants and toddlers. 

9 (C) APPROPRIATE SECRETARY.—In this 

10 subsection, the term ‘‘appropriate Secretary’’ 

11 used with respect to a function, means the Sec12 retary designated for that function under the 

13 interagency agreement. 

14 SEC. 118. ADDITIONAL PREKINDERGARTEN SERVICES. 

15 (a) PREKINDERGARTEN FOR 3-YEAR-OLDS.—Each 

16 State that certifies to the Secretary that the State pro17 vides universally available, voluntary, high-quality pre18 kindergarten programs for 4-year-old children who reside 

19 within the State and are from families with incomes at 

20 or below 200 percent of the poverty line may use the 

21 State’s allocation under section 114(b) to provide high22 quality prekindergarten programs for 3-year-old children 

23 who reside within the State and are from families with 

24 incomes at or below 200 percent of the poverty line. 


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1 (b) SUBGRANTS.—In each State that has a city, 

2 county, or local educational agency that provides univer3 sally available high-quality prekindergarten programs for 

4 4-year-old children who reside within the State and are 

5 from families with incomes at or below 200 percent of the 

6 poverty line the State may use amounts from the State’s 

7 allocation under section 114(b) to award subgrants to eli8 gible local entities to enable such eligible local entities to 

9 provide high-quality prekindergarten programs for 3-year10 old children who are from families with incomes at or 

11 below 200 percent of the poverty line and who reside in 

12 such city, county or local educational agency. 

13 SEC. 119. PERFORMANCE MEASURES AND TARGETS. 

14 (a) IN GENERAL.—A State that receives a grant 

15 under this subtitle shall develop, implement, and make 

16 publicly available the performance measures and targets 

17 for the activities carried out with grant funds. Such meas18 ures shall, at a minimum, track the State’s progress in— 

19 (1) increasing school readiness across all do20 mains for all categories of children, as described in 

21 section 123(b)(7), including children with disabilities 

22 and dual language learners; 

23 (2) narrowing school readiness gaps between 

24 minority and nonminority children, and low-income 


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1 children and more advantaged children, in prepara2 tion for kindergarten entry; 

3 (3) decreasing placement for children in ele4 mentary school in special education programs and 

5 services as described in part B of the Individuals 

6 with Disabilities Education Act (20 U.S.C. 1411 et 

7 seq.); 

8 (4) increasing the number of programs meeting 

9 the criteria for high-quality prekindergarten pro10 grams, as defined by the State and in accordance 

11 with section 112; 

12 (5) decreasing the need for grade-to-grade re13 tention in elementary school; 

14 (6) if applicable, ensuring that high-quality pre15 kindergarten programs do not experience instances 

16 of chronic absence among the children who partici17 pate in such programs; 

18 (7) increasing the number and percentage of 

19 low-income children in high-quality early childhood 

20 education programs that receive financial support 

21 through funds provided under this subtitle; and 

22 (8) providing high-quality nutrition services, 

23 nutrition education, physical activity, and obesity 

24 prevention programs. 


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1 (b) PROHIBITION OF MISDIAGNOSIS PRACTICES.—A 

2 State shall not, in order to meet the performance meas3 ures and targets described in subsection (a), engage in 

4 practices or policies that will lead to the misdiagnosis or 

5 under-diagnosis of disabilities or developmental delays 

6 among children who are served through programs sup7 ported under this subtitle. 

8 SEC. 120. MATCHING REQUIREMENTS. 

9 (a) MATCHING FUNDS.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), a State that receives a grant under this 

12 subtitle shall provide matching funds from non-Fed13 eral sources, as described in subsection (c), in an 

14 amount equal to— 

15 (A) 10 percent of the Federal funds pro16 vided under the grant in the first year of grant 

17 administration; 

18 (B) 10 percent of the Federal funds pro19 vided under the grant in the second year of 

20 grant administration; 

21 (C) 20 percent of the Federal funds pro22 vided under the grant in the third year of grant 

23 administration; 


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1 (D) 30 percent of the Federal funds pro2 vided under the grant in the fourth year of 

3 grant administration; 

4 (E) 40 percent of the Federal funds pro5 vided under the grant in the fifth year of grant 

6 administration; 

7 (F) 50 percent of the Federal funds pro8 vided under the grant in the sixth year of grant 

9 administration; 

10 (G) 75 percent of the Federal funds pro11 vided under the grant in the seventh year of 

12 grant administration; and 

13 (H) 100 percent of the Federal funds pro14 vided under the grant in the eighth and fol15 lowing years of grant administration. 

16 (2) REDUCED MATCH RATE.—A State that 

17 meets the requirements under subsection (b) may 

18 provide matching funds from non-Federal sources at 

19 a reduced rate. The full reduced matching funds 

20 rate shall be in an amount equal to— 

21 (A) 5 percent of the Federal funds pro22 vided under the grant in the first year of grant 

23 administration; 


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1 (B) 5 percent of the Federal funds pro2 vided under the grant in the second year of 

3 grant administration; 

4 (C) 10 percent of the Federal funds pro5 vided under the grant in the third year of grant 

6 administration; 

7 (D) 20 percent of the Federal funds pro8 vided under the grant in the fourth year of 

9 grant administration; 

10 (E) 30 percent of the Federal funds pro11 vided under the grant in the fifth year of grant 

12 administration; 

13 (F) 40 percent of the Federal funds pro14 vided under the grant in the sixth year of grant 

15 administration; 

16 (G) 50 percent of the Federal funds pro17 vided under the grant in the seventh year of 

18 grant administration; 

19 (H) 75 percent of the Federal funds pro20 vided under the grant in the eighth year of 

21 grant administration; and 

22 (I) 100 percent of the Federal funds pro23 vided under the grant in the ninth and fol24 lowing years of the grant administration. 


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1 (b) REDUCED MATCH RATE ELIGIBILITY.—A State 

2 that receives a grant under this subtitle may provide 

3 matching funds from non-Federal sources at the full re4 duced rate under subsection (a)(2) if the State— 

5 (1)(A) offers enrollment in high-quality pre6 kindergarten programs to not less than half of chil7 dren in the State who are— 

8 (i) age 4 on the eligibility determination 

9 date; and 

10 (ii) from families with incomes at or below 

11 200 percent of the poverty line; and 

12 (B) has a plan for continuing to expand access 

13 to high-quality prekindergarten programs for such 

14 children in the State; and 

15 (2) has a plan to expand access to high-quality 

16 prekindergarten programs to children from moderate 

17 income families whose income exceeds 200 percent of 

18 the poverty line. 

19 (c) NON-FEDERAL RESOURCES.— 

20 (1) IN CASH.—A State shall provide the match21 ing funds under this section in cash. 

22 (2) FUNDS TO BE CONSIDERED AS MATCHING

23 FUNDS.—A State may include, as part of the State’s 

24 matching funds under this section, not more than 10 

25 percent of the amount of State funds designated for 


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1 State prekindergarten programs or to supplement 

2 Head Start programs under the Head Start Act (42 

3 U.S.C. 9831 et seq.) as of the date of enactment of 

4 this Act, but may not include any funds that are at5 tributed as matching funds, as part of a non-Federal 

6 share, or as a maintenance of effort requirement, for 

7 any other Federal program. 

8 (d) MAINTENANCE OF EFFORT.— 

9 (1) IN GENERAL.—If a State reduces its com10 bined fiscal effort per student or the aggregate ex11 penditures within the State to support early child12 hood education programs for any fiscal year that a 

13 State receives a grant authorized under this subtitle 

14 relative to the previous fiscal year, the Secretary 

15 shall reduce support for such State under this sub16 title by the same amount as the decline in State and 

17 local effort for such fiscal year. 

18 (2) WAIVER.—The Secretary may waive the re19 quirements of paragraph (1) if— 

20 (A) the Secretary determines that a waiver 

21 would be appropriate due to a precipitous de22 cline in the financial resources of a State as a 

23 result of unforeseen economic hardship or a 

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1 the-board reductions in State services, including 

2 early childhood education programs; or 

3 (B) due to the circumstances of a State re4 quiring reductions in specific programs, includ5 ing early childhood education, if the State pre6 sents to the Secretary a justification and dem7 onstration why other programs could not be re8 duced and how early childhood programs in the 

9 State will not be disproportionately harmed by 

10 such State action. 

11 (e) SUPPLEMENT NOT SUPPLANT.—Grant funds re12 ceived under this title shall be used to supplement and 

13 not supplant other Federal, State, and local public funds 

14 expended on public prekindergarten programs in the 

15 State. 

16 SEC. 121. ELIGIBLE LOCAL ENTITY APPLICATIONS. 

17 (a) IN GENERAL.—An eligible local entity desiring to 

18 receive a subgrant under section 117(b) shall submit an 

19 application to the State, at such time, in such manner, 

20 and containing such information as the State may reason21 ably require. 

22 (b) CONTENTS.—Each application submitted under 

23 subsection (a) shall include the following: 

24 (1) PARENT AND FAMILY ENGAGEMENT.—A de25 scription of how the eligible local entity plans to enVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 gage the parents and families of the children such 

2 entity serves and ensure that parents and families of 

3 eligible children are aware of the services provided 

4 by the eligible local entity, which shall include a plan 

5 to— 

6 (A) carry out meaningful parent and fam7 ily engagement, through the implementation 

8 and replication of evidence-based or promising 

9 practices and strategies, which shall be coordi10 nated with parent and family engagement strat11 egies supported under the Individuals with Dis12 abilities Education Act (20 U.S.C. 1400 et seq.) 

13 and part A of title I and title V of the Elemen14 tary and Secondary Education Act of 1965 (20 

15 U.S.C. 6311 et seq. and 7201 et seq.), if appli16 cable, to— 

17 (i) provide parents and family mem18 bers with the skills and opportunities nec19 essary to become full partners in their chil20 dren’s education, particularly the families 

21 of dual language learners and children 

22 with disabilities; 

23 (ii) improve child development; and 


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1 (iii) strengthen relationships among 

2 prekindergarten staff and parents and 

3 family members; and 

4 (B) perform community outreach to en5 courage families with eligible children to partici6 pate in the eligible local entity’s high-quality 

7 prekindergarten program, including— 

8 (i) homeless children; 

9 (ii) dual language learners; 

10 (iii) children in foster care; 

11 (iv) children with disabilities; and 

12 (v) migrant children. 

13 (2) COORDINATION AND ALIGNMENT.—A de14 scription of how the eligible local entity will— 

15 (A) coordinate, if applicable, the eligible 

16 local entity’s activities with— 

17 (i) Head Start agencies (consistent 

18 with section 642(e)(5) of the Head Start 

19 Act (42 U.S.C. 9837(e)(5)), if the local en20 tity is not a Head Start agency; 

21 (ii) local educational agencies, if the 

22 eligible local entity is not a local edu23 cational agency; 


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1 (iii) providers of services under part C 

2 of the Individuals with Disabilities Edu3 cation Act (20 U.S.C. 1431 et seq.); 

4 (iv) programs carried out under sec5 tion 619 of the Individuals with Disabil6 ities Education Act (20 U.S.C. 1419); and 

7 (v) if feasible, other entities carrying 

8 out early childhood education programs 

9 and services within the area served by the 

10 local educational agency. 

11 (B) if applicable, develop and implement a 

12 systematic procedure for transferring, with pa13 rental consent, early childhood education pro14 gram records for each participating child to the 

15 school in which such child will enroll in kinder16 garten; 

17 (C) develop a plan to promote continuity of 

18 developmentally appropriate instructional pro19 grams and shared expectations with local ele20 mentary schools for children’s learning and de21 velopment as children transition to kinder22 garten; 

23 (D) organize, if feasible, and participate in 

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1 tion-related training for school staff and early 

2 childhood education program staff; 

3 (E) establish comprehensive transition poli4 cies and procedures, with applicable elementary 

5 schools and principals, for the children served 

6 by the eligible local entity that support the 

7 school readiness of children transitioning to kin8 dergarten; 

9 (F) conduct outreach to parents, families, 

10 and elementary school teachers and principals 

11 to discuss the educational, developmental, and 

12 other needs of children entering kindergarten; 

13 (G) help parents, including parents of chil14 dren who are dual language learners, under15 stand and engage with the instructional and 

16 other services provided by the kindergarten in 

17 which such child will enroll after participation 

18 in a high-quality prekindergarten program; and 

19 (H) develop and implement a system to in20 crease program participation of underserved 

21 populations of eligible children, especially home22 less children, children eligible for a free or re23 duced-price lunch under the Richard B. Russell 

24 National School Lunch Act (42 U.S.C. 1751 et 

25 seq.), parents of children who are dual language 


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1 learners, and parents of children with disabil2 ities. 

3 (3) PROTECTIONS FOR SPECIAL POPU4 LATIONS.—A description of how the eligible local en5 tity will meet the diverse needs of children in the 

6 community to be served, including children with dis7 abilities, children whose native language is not 

8 English, children with other special needs, children 

9 in the State foster care system, and homeless chil10 dren. Such description shall demonstrate, at a min11 imum, how the entity plans to— 

12 (A) ensure the eligible local entity’s high13 quality prekindergarten program is accessible 

14 and appropriate for children with disabilities 

15 and dual language learners; 

16 (B) establish effective procedures for pro17 viding necessary early intervening services to 

18 children with disabilities prior to an eligibility 

19 determination by the State or local agency re20 sponsible for providing services under section 

21 619 or part C of the Individuals with Disabil22 ities Education Act (20 U.S.C. 1419 and 1431 

23 et seq.); 

24 (C) establish effective procedures for time25 ly referral of children with disabilities to the 


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1 State or local agency described in subparagraph 

2 (B); 

3 (D) ensure that the eligible local entity’s 

4 high-quality prekindergarten program works 

5 with appropriate entities to address the elimi6 nation of barriers to immediate and continuous 

7 enrollment for homeless children; and 

8 (E) ensure access to and continuity of en9 rollment in high-quality prekindergarten pro10 grams for migratory children, if applicable, and 

11 homeless children, including through policies 

12 and procedures that require— 

13 (i) outreach to identify migratory chil14 dren and homeless children; 

15 (ii) immediate enrollment, including 

16 enrollment during the period of time when 

17 documents typically required for enroll18 ment, including health and immunization 

19 records, proof of eligibility, and other docu20 ments, are obtained; 

21 (iii) continuous enrollment and par22 ticipation in the same high-quality pre23 kindergarten program for a child, even if 

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1 tion are in the child’s best interest, includ2 ing by providing transportation when nec3 essary; 

4 (iv) professional development for high5 quality prekindergarten program staff re6 garding migratory children and homeless7 ness among families with young children; 

8 and 

9 (v) in serving homeless children, col10 laboration with local educational agency li11 aisons designated under section 

12 722(g)(1)(J)(ii) of the McKinney-Vento 

13 Homeless Assistance Act (42 U.S.C. 

14 11432(g)(1)(J)(ii)), and local homeless 

15 service providers. 

16 (4) ACCESSIBLE COMPREHENSIVE SERVICES.— 

17 A description of how the eligible local entity plans to 

18 provide accessible comprehensive services, described 

19 in section 112(9)(I), to the children the eligible local 

20 entity serves. Such description shall provide informa21 tion on how the entity will— 

22 (A) conduct a data-driven community as23 sessment in coordination with members of the 

24 community, including parents and community 


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1 organizations, or use a recently conducted data2 driven assessment, which— 

3 (i) may involve an external partner 

4 with expertise in conducting such needs 

5 analysis, to determine the most appro6 priate social or other support services to 

7 offer through the eligible local entity’s on8 site comprehensive services to children who 

9 participate in high-quality prekindergarten 

10 programs; and 

11 (ii) shall consider the resources avail12 able at the school, local educational agen13 cy, and community levels to address the 

14 needs of the community and improve child 

15 outcomes; and 

16 (B) have a coordinated system to facilitate 

17 the screening, referral, and provision of services 

18 related to health, nutrition, mental health, dis19 ability, and family support for children served 

20 by the eligible local entity. 

21 (5) WORKFORCE.—A description of how the eli22 gible local entity plans to support the instructional 

23 staff of such entity’s high-quality prekindergarten 

24 program, which shall, at a minimum, include a plan 

25 to provide high-quality professional development, or 


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1 facilitate the provision of high-quality professional 

2 development through an external partner with exper3 tise and a demonstrated track record of success, 

4 based on scientifically valid research, that will im5 prove the knowledge and skills of high-quality pre6 kindergarten teachers and staff through activities, 

7 which may include— 

8 (A) acquiring content knowledge and learn9 ing teaching strategies needed to provide effec10 tive instruction that addresses the State’s early 

11 learning and development standards described 

12 under section 115(1); 

13 (B) enabling high-quality prekindergarten 

14 teachers and staff to pursue specialized training 

15 in early childhood development; 

16 (C) enabling high-quality prekindergarten 

17 teachers and staff to acquire the knowledge and 

18 skills to provide instruction and appropriate 

19 language and support services to increase the 

20 English language skills of dual language learn21 ers; 

22 (D) enabling high-quality prekindergarten 

23 teachers and staff to acquire the knowledge and 

24 skills to provide developmentally appropriate in25 struction for children with disabilities; 


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1 (E) promoting classroom management; 

2 (F) providing high-quality induction and 

3 support for incoming high-quality prekinder4 garten teachers and staff in high-quality pre5 kindergarten programs, including through the 

6 use of mentoring programs that have a dem7 onstrated track record of success; 

8 (G) promoting the acquisition of relevant 

9 credentials, including in ways that support ca10 reer advancement through career ladders; and 

11 (H) enabling high-quality prekindergarten 

12 teachers and staff to acquire the knowledge and 

13 skills to provide culturally competent instruc14 tion for children from diverse backgrounds. 

15 SEC. 122. REQUIRED SUBGRANT ACTIVITIES. 

16 (a) IN GENERAL.—An eligible local entity that re17 ceives a subgrant under section 117(b) shall use subgrant 

18 funds to implement the elements of a high-quality pre19 kindergarten program for the children described in section 

20 117(b). 

21 (b) COORDINATION.— 

22 (1) LOCAL EDUCATIONAL AGENCY PARTNER23 SHIPS WITH LOCAL EARLY CHILDHOOD EDUCATION

24 PROGRAMS.—A local educational agency that re25 ceives a subgrant under this subtitle shall provide an 


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1 assurance that the local educational agency will 

2 enter into strong partnerships with local early child3 hood education programs, including programs sup4 ported through the Head Start Act (42 U.S.C. 9831 

5 et seq.). 

6 (2) ELIGIBLE LOCAL ENTITIES THAT ARE NOT

7 LOCAL EDUCATIONAL AGENCIES.—An eligible local 

8 entity that is not a local educational agency that re9 ceives a subgrant under this subtitle shall provide an 

10 assurance that such entity will enter into strong 

11 partnerships with local educational agencies. 

12 SEC. 123. REPORT AND EVALUATION. 

13 (a) IN GENERAL.—Each State that receives a grant 

14 under this subtitle shall prepare an annual report, in such 

15 manner and containing such information as the Secretary 

16 may reasonably require. 

17 (b) CONTENTS.—A report prepared under subsection 

18 (a) shall contain, at a minimum— 

19 (1) a description of the manner in which the 

20 State has used the funds made available through the 

21 grant and a report of the expenditures made with 

22 the funds; 

23 (2) a summary of the State’s progress toward 

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1 termined by the State, from families with incomes at 

2 or below 200 percent of the poverty line, including 

3 the percentage of funds spent on children from fami4 lies with incomes— 

5 (A) at or below 100 percent of the poverty 

6 line; 

7 (B) at or below between 101 and 150 per8 cent of the poverty line; and 

9 (C) at or below between 151 and 200 per10 cent of the poverty line; 

11 (3) an evaluation of the State’s progress toward 

12 achieving the State’s performance targets, described 

13 in section 119; 

14 (4) data on the number of high-quality pre15 kindergarten program teachers and staff in the 

16 State (including teacher turnover rates and teacher 

17 compensation levels compared to teachers in elemen18 tary schools and secondary schools), according to the 

19 setting in which such teachers and staff work (which 

20 settings shall include, at a minimum, Head Start 

21 programs, public prekindergarten, and child care 

22 programs) who received training or education during 

23 the period of the grant and remained in the early 

24 childhood education program field; 


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1 (5) data on the kindergarten readiness of chil2 dren in the State; 

3 (6) a description of the State’s progress in over4 coming barriers to the effective use of Federal, 

5 State, and local public funds and private funds, for 

6 early childhood education; 

7 (7) the number and percentage of children in 

8 the State participating in high-quality prekinder9 garten programs, disaggregated by race, ethnicity, 

10 family income, child age, disability, whether the chil11 dren are homeless children, and whether the children 

12 are dual language learners; 

13 (8) data on the availability, affordability, and 

14 quality of infant and toddler care in the State; 

15 (9) the number of operational minutes per week 

16 and per year for each eligible local entity that re17 ceives a subgrant; 

18 (10) the local educational agency and ZIP code 

19 in which each eligible local entity that receives a 

20 subgrant operates; 

21 (11) information, for each of the local edu22 cational agencies described in paragraph (10), on 

23 the percentage of the costs of the public early child24 hood education programs that is funded from FedVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 eral, from State, and from local sources, including 

2 the percentages from specific funding programs; 

3 (12) data on the number and percentage of 

4 children in the State participating in public kinder5 garten programs, disaggregated by race, family in6 come, child age, disability, whether the children are 

7 homeless children, and whether the children are dual 

8 language learners, with information on whether such 

9 programs are offered— 

10 (A) for a full-day; and 

11 (B) at no cost to families; and 

12 (13) data on the number of individuals in the 

13 State who are supported with scholarships, if appli14 cable, to meet the baccalaureate degree requirement 

15 for high-quality prekindergarten programs, as de16 fined in section 112. 

17 (c) SUBMISSION.—A State shall submit the annual 

18 report prepared under subsection (a), at the end of each 

19 fiscal year, to the Secretary, the Secretary of Health and 

20 Human Services, and the State Advisory Council on Early 

21 Childhood Education and Care. 

22 (d) COOPERATION.—An eligible local entity that re23 ceives a subgrant under this subtitle shall cooperate with 

24 all Federal and State efforts to evaluate the effectiveness 

25 of the program the entity implements with subgrant funds. 


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1 (e) NATIONAL REPORT.—The Secretary shall compile 

2 and summarize the annual State reports described under 

3 subsection (c) and shall prepare and submit an annual re4 port to Congress that includes a summary of such State 

5 reports. 

6 SEC. 124. PROHIBITION OF REQUIRED PARTICIPATION OR 

7 USE OF FUNDS FOR ASSESSMENTS. 

8 (a) PROHIBITION ON REQUIRED PARTICIPATION.—A 

9 State receiving a grant under this subtitle shall not re10 quire any child to participate in any Federal, State, local, 

11 or private early childhood education program, including a 

12 high-quality prekindergarten program. 

13 (b) PROHIBITION ON USE OF FUNDS FOR ASSESS14 MENT.—A State receiving a grant under this subtitle and 

15 an eligible local entity receiving a subgrant under this sub16 title shall not use any grant or subgrant funds to carry 

17 out any of the following activities: 

18 (1) An assessment that provides rewards or 

19 sanctions for individual children, teachers, or prin20 cipals. 

21 (2) An assessment that is used as the primary 

22 or sole method for assessing program effectiveness. 

23 (3) Evaluating children, other than for the pur24 poses of— 


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1 (A) improving instruction or the classroom 

2 environment; 

3 (B) targeting professional development; 

4 (C) determining the need for health, men5 tal health, disability, or family support services; 

6 (D) program evaluation for the purposes of 

7 program improvement and parent information; 

8 and 

9 (E) improving parent and family engage10 ment. 

11 SEC. 125. COORDINATION WITH HEAD START PROGRAMS. 

12 (a) INCREASED ACCESS FOR YOUNGER CHILDREN.— 

13 Not later than 1 year after the date of enactment of this 

14 Act, the Secretary and the Secretary of Health and 

15 Human Services shall develop a process— 

16 (1) for use in the event that Head Start pro17 grams funded under the Head Start Act (42 U.S.C. 

18 9831 et seq.) operate in States or regions that have 

19 achieved sustained universal, voluntary access to 4- 

20 year-old children who reside within the State and 

21 who are from families with incomes at or below 200 

22 percent of the poverty line to high-quality prekinder23 garten programs; and 

24 (2) for how such Head Start programs will 

25 begin converting slots for children who are age 4 on 


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1 the eligibility determination date to children who are 

2 age 3 on the eligibility determination date, or, when 

3 appropriate, converting Head Start Programs into 

4 Early Head Start programs to serve infants and tod5 dlers. 

6 (b) COMMUNITY NEED AND RESOURCES.—The proc7 ess described in subsection (a) shall— 

8 (1) be carried out on a case-by-case basis and 

9 shall ensure that sufficient resources and time are 

10 allocated for the development of such a process so 

11 that no child or cohort is excluded from currently 

12 available services; and 

13 (2) ensure that any conversion shall be based 

14 on community need and not on the aggregate num15 ber of children served in a State or region that has 

16 achieved sustained, universal, voluntary access to 

17 high-quality prekindergarten programs. 

18 (c) PUBLIC COMMENT AND NOTICE.—Not fewer than 

19 90 days after the development of the proposed process de20 scribed in subsection (a), the Secretary and the Secretary 

21 of Health and Human Services shall publish a notice de22 scribing such proposed process for conversion in the Fed23 eral Register providing at least 90 days for public com24 ment. The Secretaries shall review and consider public 


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1 comments prior to finalizing the process for conversion of 

2 Head Start slots and programs. 

3 (d) REPORTS TO CONGRESS.—Concurrently with 

4 publishing a notice in the Federal Register as described 

5 in subsection (c), the Secretaries shall provide a report 

6 to the Committee on Education and the Workforce of the 

7 House of Representatives and the Committee on Health, 

8 Education, Labor, and Pensions of the Senate that pro9 vides a detailed description of the proposed process de10 scribed in subsection (a), including a description of the 

11 degree to which Head Start programs are providing State12 funded high-quality prekindergarten programs as a result 

13 of the grant opportunity provided under this subtitle in 

14 States where Head Start programs are eligible for conver15 sion described in subsection (a). 

16 SEC. 126. TECHNICAL ASSISTANCE IN PROGRAM ADMINIS17 TRATION. 

18 In providing technical assistance to carry out activi19 ties under this title, the Secretary shall coordinate that 

20 technical assistance, in appropriate cases, with technical 

21 assistance provided by the Secretary of Health and 

22 Human Services to carry out the programs authorized 

23 under the Head Start Act (42 U.S.C. 9831 et seq.), the 

24 Child Care and Development Block Grant Act of 1990 (42 

25 U.S.C. 9858 et seq.), and the maternal, infant and early 


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1 childhood home visiting programs assisted under section 

2 511 of the Social Security Act (42 U.S.C. 711). 

3 SEC. 127. AUTHORIZATION OF APPROPRIATIONS. 

4 There are authorized to be appropriated to carry out 

5 this subtitle— 

6 (1) $1,300,000,000 for fiscal year 2015; 

7 (2) $3,250,000,000 for fiscal year 2016; 

8 (3) $5,780,000,000 for fiscal year 2017; 

9 (4) $7,580,000,000 for fiscal year 2018; 

10 (5) $8,960,000,000 for fiscal year 2019; and 

11 (6) such sums as may be necessary for each of 

12 fiscal years 2020 through 2024. 

13 Subtitle B—Prekindergarten 

14 Development Grants 

15 SEC. 151. PREKINDERGARTEN DEVELOPMENT GRANTS. 

16 (a) IN GENERAL.—From the amounts appropriated 

17 under subsection (f), the Secretary of Education, in con18 sultation with the Secretary of Health and Human Serv19 ices, shall award competitive grants to States that wish 

20 to increase the capacity and build the infrastructure with21 in the State to offer high-quality prekindergarten pro22 grams. 

23 (b) ELIGIBILITY.—A State that is not receiving funds 

24 under section 115 may compete for grant funds under this 

25 subtitle if the State provides an assurance that the State 


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1 will, through the support of grant funds awarded under 

2 this subtitle, meet the eligibility requirements of section 

3 115 not later than 3 years after the date the State first 

4 receives grant funds under this subtitle. 

5 (c) GRANTS.— 

6 (1) DURATION.—The Secretary shall award 

7 grants to States under this subtitle for a period of 

8 not more than 3 years and such grants shall not be 

9 renewed. 

10 (2) AUTHORITY TO SUBGRANT.— 

11 (A) IN GENERAL.—A State receiving a 

12 grant under this subtitle may use the grant 

13 funds to make subgrants to eligible local enti14 ties (defined in section 112(7)) to carry out ac15 tivities under the grant. 

16 (B) ELIGIBLE LOCAL ENTITIES.—An eligi17 ble local entity receiving a subgrant under sub18 paragraph (A) shall comply with the require19 ments for States receiving a grant under this 

20 subtitle, as appropriate. 

21 (d) APPLICATION.— 

22 (1) IN GENERAL.—A Governor of a State that 

23 desires to receive a grant under this subtitle shall 

24 submit an application to the Secretary of Education 

25 at such time, in such manner, and accompanied by 


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1 such information as the Secretary may reasonably 

2 require, including a description of how the State 

3 plans to become eligible for grants under section 115 

4 by not later than 3 years after the date the State 

5 first receives grant funds under this subtitle. 

6 (2) DEVELOPMENT OF APPLICATION.—In devel7 oping an application for a grant under this subtitle, 

8 a Governor of a State shall consult with the State 

9 Advisory Council on Early Childhood Education and 

10 Care, and incorporate their recommendations, where 

11 applicable. 

12 (e) MATCHING REQUIREMENT.— 

13 (1) IN GENERAL.—To be eligible to receive a 

14 grant under this subtitle, a State shall contribute for 

15 the activities for which the grant was awarded non16 Federal matching funds in an amount equal to not 

17 less than 20 percent of the amount of the grant. 

18 (2) NON-FEDERAL FUNDS.—To satisfy the re19 quirement of paragraph (1), a State may use— 

20 (A) cash; or 

21 (B) an in-kind contribution. 

22 (3) FINANCIAL HARDSHIP WAIVER.—The Sec23 retary may waive paragraph (1) or reduce the 

24 amount of matching funds required under that para25 graph for a State that has submitted an application 


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1 for a grant under this subtitle if the State dem2 onstrates, in the application, a need for such a waiv3 er or reduction due to extreme financial hardship, as 

4 determined by the Secretary of Education. 

5 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to carry out this sub7 title— 

8 (1) $750,000,000 for fiscal year 2015; and 

9 (2) such sums as may be necessary for each of 

10 fiscal years 2016 through 2024. 

11 TITLE II—RESTORING SUMMER 

12 PELL GRANTS 

13 SEC. 201. FEDERAL PELL GRANTS. 

14 Section 401(b) of the Higher Education Act of 1965 

15 (20 U.S.C. 1070a) is amended— 

16 (1) by redesignating paragraphs (5) through 

17 (7) as paragraphs (6) through (8), respectively; 

18 (2) in paragraph (2)(A)(ii), by striking ‘‘para19 graph (7)(B)’’ and inserting ‘‘paragraph (8)(B)’’; 

20 and 

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

23 ‘‘(5)(A) The Secretary shall award a student 

24 not more than two Federal Pell Grants during a sin25 gle award year to permit such student to accelerate 


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1 the student’s progress toward a degree or certificate 

2 if the student is enrolled— 

3 ‘‘(i) on at least a half-time basis for a pe4 riod of more than one academic year, or more 

5 than two semesters or an equivalent period of 

6 time, during a single award year; and 

7 ‘‘(ii) in a program of instruction at an in8 stitution of higher education for which the insti9 tution awards an associate or baccalaureate de10 gree or a certificate. 

11 ‘‘(B) In the case of a student receiving more 

12 than one Federal Pell Grant in a single award year 

13 under subparagraph (A), the total amount of Fed14 eral Pell Grants awarded to such student for the 

15 award year may exceed the maximum basic grant 

16 level specified in the appropriate appropriations Act 

17 for such award year.’’. 

18 TITLE III—RESTORING TITLE IV 

19 ABILITY-TO-BENEFIT ELIGI20 BILITY 

21 SEC. 301. ABILITY-TO-BENEFIT ELIGIBILITY. 

22 Section 484(d) of the Higher Education Act of 1965 

23 (20 U.S.C. 1091(d)) is amended to read as follows: 

24 ‘‘(d) STUDENTS WHO ARE NOT HIGH SCHOOL

25 GRADUATES.—In order for a student who does not have 


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1 a certificate of graduation from a school providing sec2 ondary education, or the recognized equivalent of such cer3 tificate, to be eligible for any assistance under subparts 

4 1, 3, and 4 of part A and parts B, C, D, and E of this 

5 title, the student shall meet one of the following standards: 

6 ‘‘(1) The student shall take an independently 

7 administered examination and shall achieve a score, 

8 specified by the Secretary, demonstrating that such 

9 student can benefit from the education or training 

10 being offered. Such examination shall be approved 

11 by the Secretary on the basis of compliance with 

12 such standards for development, administration, and 

13 scoring as the Secretary may prescribe in regula14 tions. 

15 ‘‘(2) The student shall be determined as having 

16 the ability to benefit from the education or training 

17 in accordance with such process as the State shall 

18 prescribe. Any such process described or approved 

19 by a State for the purposes of this section shall be 

20 effective 6 months after the date of submission to 

21 the Secretary unless the Secretary disapproves such 

22 process. In determining whether to approve or dis23 approve such process, the Secretary shall take into 

24 account the effectiveness of such process in enabling 

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1 lent thereof to benefit from the instruction offered 

2 by institutions utilizing such process, and shall also 

3 take into account the cultural diversity, economic 

4 circumstances, and educational preparation of the 

5 populations served by the institutions. 

6 ‘‘(3) The student has completed a secondary 

7 school education in a home school setting that is 

8 treated as a home school or private school under 

9 State law. 

10 ‘‘(4) The student shall be determined by the in11 stitution of higher education as having the ability to 

12 benefit from the education or training offered by the 

13 institution of higher education upon satisfactory 

14 completion of six credit hours or the equivalent 

15 coursework that are applicable toward a degree or 

16 certificate offered by the institution of higher edu17 cation.’’. 

18 TITLE IV—YOUTH PROMISE/FED19 ERAL COORDINATION OF 

20 LOCAL AND TRIBAL JUVE21 NILE JUSTICE INFORMATION 

22 AND EFFORTS 

23 SEC. 401. PROMISE ADVISORY PANEL. 

24 (a) ORGANIZATION OF STATE ADVISORY GROUP

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1 venile Justice and Delinquency Prevention Act of 1974 

2 (42 U.S.C. 5633(f)) is amended— 

3 (1) in paragraph (1), by striking ‘‘an eligible 

4 organization composed of member representatives of 

5 the State advisory groups appointed under sub6 section (a)(3)’’ and inserting ‘‘a nonpartisan, non7 profit organization that is described in section 

8 501(c)(3) of the Internal Revenue Code of 1986,’’; 

9 and 

10 (2) by amending paragraph (2) to read as fol11 lows: 

12 ‘‘(2) ASSISTANCE.—To be eligible to receive 

13 such assistance, such organization shall— 

14 ‘‘(A) be governed by individuals who— 

15 ‘‘(i) have been appointed by a chief 

16 executive of a State to serve as a State ad17 visory group member under subsection 

18 (a)(3); and 

19 ‘‘(ii) are elected to serve as a gov20 erning officer of such organization by a 

21 majority of the Chairs (or Chair-designees) 

22 of all such State advisory groups; 

23 ‘‘(B) include member representatives from 

24 a majority of such State advisory groups, who 


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1 shall be representative of regionally and demo2 graphically diverse States and jurisdictions; 

3 ‘‘(C) annually seek appointments by the 

4 chief executive of each State of one State advi5 sory group member and one alternate State ad6 visory group member from each such State to 

7 implement the advisory functions specified in 

8 clauses (iv) and (v) of subparagraph (D), in9 cluding serving on the PROMISE Advisory 

10 Panel, and make a record of any such appoint11 ments available to the public; and 

12 ‘‘(D) agree to carry out activities that in13 clude— 

14 ‘‘(i) conducting an annual conference 

15 of such member representatives for pur16 poses relating to the activities of such 

17 State advisory groups; 

18 ‘‘(ii) disseminating information, data, 

19 standards, advanced techniques, and pro20 gram models; 

21 ‘‘(iii) reviewing Federal policies re22 garding juvenile justice and delinquency 

23 prevention; 

24 ‘‘(iv) advising the Administrator with 

25 respect to particular functions or aspects 


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1 of the work of the Office, and appointing 

2 a representative, diverse group of members 

3 of such organization under subparagraph 

4 (C) to serve as an advisory panel of State 

5 juvenile justice advisors (referred to as the 

6 ‘PROMISE Advisory Panel’) to carry out 

7 the functions specified in subsection (g); 

8 and 

9 ‘‘(v) advising the President and Con10 gress with regard to State perspectives on 

11 the operation of the Office and Federal 

12 legislation pertaining to juvenile justice 

13 and delinquency prevention.’’. 

14 (b) PROMISE ADVISORY PANEL.—Section 223 of 

15 the Juvenile Justice and Delinquency Prevention Act of 

16 1974 (42 U.S.C. 5633) is further amended by adding at 

17 the end the following new subsection: 

18 ‘‘(g) PROMISE ADVISORY PANEL.— 

19 ‘‘(1) FUNCTIONS.—The PROMISE Advisory 

20 Panel required under subsection (f)(2)(D) shall— 

21 ‘‘(A) assess successful evidence-based and 

22 promising practices related to juvenile delin23 quency and criminal street gang activity preven24 tion and intervention carried out by PROMISE 

25 Coordinating Councils under section 511 of title 


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1 V of division A of the Pathways Out of Poverty 

2 Act of 2014; 

3 ‘‘(B) provide the Administrator with a list 

4 of individuals and organizations with experience 

5 in administering or evaluating practices that 

6 serve youth involved in, or at risk of involve7 ment in, juvenile delinquency and criminal 

8 street gang activity, from which the Adminis9 trator shall select individuals who shall— 

10 ‘‘(i) provide to the Administrator peer 

11 reviews of applications submitted by units 

12 of local government and Indian tribes pur13 suant to title V of division A of the Path14 ways Out of Poverty Act of 2014, to en15 sure that such applications demonstrate a 

16 clear plan to— 

17 ‘‘(I) serve youth as part of an en18 tire family unit; and 

19 ‘‘(II) coordinate the delivery of 

20 service to youth among agencies; and 

21 ‘‘(ii) advise the Administrator with re22 spect to the award and allocation of 

23 PROMISE Planning grants to local and 

24 tribal governments that develop PROMISE 

25 Coordinating Councils, and of PROMISE 


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1 Implementation grants to such PROMISE 

2 Coordinating Councils, pursuant to of title 

3 V of division A of the Pathways Out of 

4 Poverty Act of 2014; and 

5 ‘‘(C) develop performance standards to be 

6 used to evaluate programs and activities carried 

7 out with grants under of title V of division A 

8 of thePathways Out of Poverty Act of 2014, in9 cluding the evaluation of changes achieved as a 

10 result of such programs and activities related to 

11 decreases in juvenile delinquency and criminal 

12 street gang activity, including— 

13 ‘‘(i) prevention of involvement by at14 risk youth in juvenile delinquency or crimi15 nal street gang activity; 

16 ‘‘(ii) diversion of youth with a high 

17 risk of continuing involvement in juvenile 

18 delinquency or criminal street gang activ19 ity; and 

20 ‘‘(iii) financial savings from deferred 

21 or eliminated costs, or other benefits, as a 

22 result of such programs and activities, and 

23 the reinvestment by the unit or tribe of 

24 any such savings. 


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1 ‘‘(2) ANNUAL REPORT.—Not later than 18 

2 months after the date of the effective date of this 

3 subsection, and annually thereafter, the PROMISE 

4 Advisory Panel shall prepare a report containing the 

5 findings and determinations under paragraph (1)(A) 

6 and shall submit such report to Congress, the Presi7 dent, the Attorney General, and the chief executive 

8 and chief law enforcement officer of each State, unit 

9 of local government, and Indian tribe.’’. 

10 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

11 299(a)(1) of the Juvenile Justice and Delinquency Preven12 tion Act of 1974 (42 U.S.C. 5671(a)(1)) is amended to 

13 read as follows: 

14 ‘‘(1) There are authorized to be appropriated 

15 such sums as may be necessary to carry out this 

16 title for each of the fiscal years 2015 through 

17 2017.’’. 

18 SEC. 402. GEOGRAPHIC ASSESSMENT OF RESOURCE ALLO19 CATION. 

20 (a) GRANT FOR COLLECTION OF DATA TO DETER21 MINE NEED.—Subject to the availability of appropria22 tions, the Administrator of the Office of Juvenile Justice 

23 and Delinquency Prevention shall award a grant, on a 

24 competitive basis, to an organization to— 


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1 (1) collect and analyze data related to the exist2 ing juvenile delinquency and criminal street gang ac3 tivity prevention and intervention needs and re4 sources in each designated geographic area; 

5 (2) use the data collected and analyzed under 

6 paragraph (1) to compile a list of designated geo7 graphic areas that have the most need of resources, 

8 based on such data, to carry out juvenile delin9 quency and criminal street gang activity prevention 

10 and intervention; 

11 (3) use the data collected and analyzed under 

12 paragraph (1) to rank the areas listed under para13 graph (2) in descending order by the amount of need 

14 for resources to carry out juvenile delinquency and 

15 criminal street gang activity prevention and inter16 vention, ranking the area with the greatest need for 

17 such resources highest; and 

18 (4) periodically update the list and rankings 

19 under paragraph (3) as the Administrator deter20 mines to be appropriate. 

21 (b) DATA SOURCES.—In compiling such list and de22 termining such rankings, the organization shall collect and 

23 analyze data relating to juvenile delinquency and criminal 

24 street gang activity prevention and intervention— 


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1 (1) using the geographic information system 

2 and Web-based mapping application known as the 

3 Socioeconomic Mapping and Resource Topography 

4 (SMART) system; 

5 (2) from the Department of Health and Human 

6 Services, the Department of Labor, the Department 

7 of Housing and Urban Development, and the De8 partment of Education; and 

9 (3) from the annual KIDS Count Data Book 

10 and other data made available by the KIDS Count 

11 initiative of the Annie E. Casey Foundation. 

12 (c) USE OF DATA BY THE ADMINISTRATOR.—The list 

13 and rankings required by this section shall be provided 

14 to the Administrator to be used to provide funds under 

15 this section in the most strategic and effective manner to 

16 ensure that resources and services are provided to youth 

17 in the communities with the greatest need for such re18 sources and services. 

19 (d) LIMITATION ON USE OF COLLECTED DATA.— 

20 The information collected and analyzed under this section 

21 may not be used for any purpose other than to carry out 

22 the purposes of this section. Such information may not 

23 be used for any purpose related to the investigation or 

24 prosecution of any person, or for profiling of individuals 


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1 based on race, ethnicity, socio-economic status, or any 

2 other characteristic. 

3 (e) AUTHORIZATION AND LIMITATION OF APPRO4 PRIATIONS.—Of the amount appropriated for fiscal year 

5 2015 to carry out this section and subtitle A of title V 

6 of this Act, not more than 1 percent of such amount, or 

7 $1,000,000, whichever is less, shall be available to carry 

8 out this section. 

9 TITLE V—PROMISE GRANTS 

10 SEC. 501. PURPOSES. 

11 The purposes of the grant programs established 

12 under this title are to— 

13 (1) enable local and tribal communities to as14 sess the unmet needs of youth who are involved in, 

15 or are at risk of involvement in, juvenile delinquency 

16 or criminal street gangs; 

17 (2) develop plans appropriate for a community 

18 to address those unmet needs with juvenile delin19 quency and gang prevention and intervention prac20 tices; and 

21 (3) implement and evaluate such plans in a 

22 manner consistent with this title. 

23 SEC. 502. DEFINITIONS. 

24 In this title: 


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1 (1) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the Office of Ju3 venile Justice and Delinquency Prevention. 

4 (2) COMMUNITY.—The term ‘‘community’’ 

5 means a unit of local government or an Indian tribe, 

6 or part of such a unit or tribe, as determined by 

7 such a unit or tribe for the purpose of applying for 

8 a grant under this title. 

9 (3) DESIGNATED GEOGRAPHIC AREA.—The 

10 term ‘‘designated geographic area’’ means a 5-digit 

11 postal ZIP Code assigned to a geographic area by 

12 the United States Postal Service. 

13 (4) EVIDENCE-BASED.— 

14 (A) IN GENERAL.—The term ‘‘evidence15 based’’, when used with respect to a practice re16 lating to juvenile delinquency and criminal 

17 street gang activity prevention and intervention, 

18 means a practice (including a service, program, 

19 activity, intervention, technology, or strategy) 

20 for which the Administrator has determined— 

21 (i) causal evidence documents a rela22 tionship between the practice and its in23 tended outcome, based on measures of the 

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1 tent to which a change may be attributed 

2 to the practice; and 

3 (ii) the use of scientific methods rules 

4 out, to the extent possible, alternative ex5 planations for the documented change. 

6 (B) SCIENTIFIC METHODS.—For the pur7 poses of subparagraph (A), the term ‘‘scientific 

8 methods’’ means— 

9 (i) evaluation by an experimental trial, 

10 in which participants are randomly as11 signed to participate in the practice that is 

12 subject to such trial; or 

13 (ii) evaluation by a quasi-experimental 

14 trial, in which the outcomes for partici15 pants are compared with outcomes for a 

16 control group that is made up of individ17 uals who are similar to such participants. 

18 (5) INTERVENTION.—The term ‘‘intervention’’ 

19 means the provision of programs and services that 

20 are supported by research, are evidence-based or 

21 promising practices, and are provided to youth who 

22 are involved in, or who are identified by evidence23 based risk assessment methods as being at high risk 

24 of continued involvement in, juvenile delinquency or 

25 criminal street gangs, as a result of indications that 


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1 demonstrate involvement with problems such as tru2 ancy, substance abuse, mental health treatment 

3 needs, or siblings who have had involvement with ju4 venile or criminal justice systems. 

5 (6) JUVENILE DELINQUENCY AND CRIMINAL

6 STREET GANG ACTIVITY PREVENTION.—The term 

7 ‘‘juvenile delinquency and criminal street gang activ8 ity prevention’’ means the provision of programs and 

9 resources to children and families who have not yet 

10 had substantial contact with criminal justice or juve11 nile justice systems, that— 

12 (A) are designed to reduce potential juve13 nile delinquency and criminal street gang activ14 ity risks; and 

15 (B) are evidence-based or promising edu16 cational, health, mental health, school-based, 

17 community-based, faith-based, parenting, job 

18 training, social opportunities and experiences, 

19 or other programs, for youth and their families, 

20 that have been demonstrated to be effective in 

21 reducing juvenile delinquency and criminal 

22 street gang activity risks. 

23 (7) PROMISING.—The term ‘‘promising’’, when 

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1 tion and intervention, means a practice (including a 

2 service, program, activity, intervention, technology, 

3 or strategy) that, based on statistical analyses or a 

4 theory of change, the Administrator has deter5 mined— 

6 (A) has outcomes from an evaluation that 

7 demonstrate such practice reduces juvenile de8 linquency and criminal street gang activity; and 

9 (B) is part of a study being conducted to 

10 determine if such a practice is evidence-based. 

11 (8) STATE.—The term ‘‘State’’ means each of 

12 the several States, the District of Columbia, the 

13 Commonwealth of Puerto Rico, the Virgin Islands, 

14 American Samoa, Guam, the Northern Mariana Is15 lands, and any other territories or possessions of the 

16 United States. 

17 (9) THEORY OF CHANGE.—The term ‘‘theory of 

18 change’’ means a program planning strategy ap19 proved by the Administrator that outlines the types 

20 of interventions and outcomes essential to achieving 

21 a set of program goals. 

22 (10) YOUTH.—The term ‘‘youth’’ means— 

23 (A) an individual who is 18 years of age or 

24 younger; or 


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1 (B) in any State in which the maximum 

2 age at which the juvenile justice system of such 

3 State has jurisdiction over individuals exceeds 

4 18 years of age, an individual who is such max5 imum age or younger. 

6 Subtitle A—PROMISE Assessment 

7 and Planning Grants 

8 SEC. 510. PROMISE ASSESSMENT AND PLANNING GRANTS 

9 AUTHORIZED. 

10 (a) GRANTS AUTHORIZED.—The Administrator is 

11 authorized to award grants to units of local government 

12 and Indian tribes to assist PROMISE Coordinating Coun13 cils with planning and assessing evidence-based and prom14 ising practices relating to juvenile delinquency and crimi15 nal street gang activity prevention and intervention, espe16 cially for youth who are involved in, or who are at risk 

17 of involvement in, juvenile delinquency and criminal street 

18 gang activity. Such PROMISE Coordinating Councils 

19 shall— 

20 (1) conduct an objective needs and strengths 

21 assessment in accordance with section 512; and 

22 (2) develop a PROMISE Plan in accordance 

23 with section 513, based on the assessment conducted 

24 in accordance with section 512. 


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1 (b) GRANT DURATION, AMOUNT, AND ALLOCA2 TION.— 

3 (1) DURATION.—A grant awarded under this 

4 section shall be for a period not to exceed one year. 

5 (2) MAXIMUM GRANT AMOUNT.—A grant 

6 awarded under this section shall not exceed 

7 $300,000. 

8 (c) ALLOCATION.— 

9 (1) MINIMUM ALLOCATION.—Subject to the 

10 availability of appropriations, the Administrator 

11 shall ensure that the total funds allocated under this 

12 section to units of local governments and Indian 

13 tribes in a State shall not be less than $1,000,000. 

14 (2) RATABLE REDUCTION.—If the amount 

15 made available for grants under this section for any 

16 fiscal year is less than the amount required to pro17 vide the minimum allocation of funds under para18 graph (1) to units of local government and Indian 

19 tribes in each State, then the amount of such min20 imum allocation shall be ratably reduced. 

21 SEC. 511. PROMISE COORDINATING COUNCILS. 

22 To be eligible to receive a grant under this subtitle, 

23 a unit of local government or an Indian tribe shall estab24 lish a PROMISE Coordinating Council for each commu25 nity of such unit or tribe, respectively, for which such unit 


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1 or tribe is applying for a grant under this subtitle. Each 

2 such community shall include one or more designated geo3 graphic areas identified on the list required under section 

4 402(a)(2). The members of such a PROMISE Coordi5 nating Council shall be representatives of public and pri6 vate sector entities and individuals that— 

7 (1) shall include, to the extent possible, at least 

8 one representative from each of the following: 

9 (A) the local chief executive’s office; 

10 (B) a local educational agency; 

11 (C) a local health agency or provider; 

12 (D) a local mental health agency or pro13 vider, unless the representative under subpara14 graph (C) also meets the requirements of this 

15 subparagraph; 

16 (E) a local public housing agency; 

17 (F) a local law enforcement agency; 

18 (G) a local child welfare agency; 

19 (H) a local juvenile court; 

20 (I) a local juvenile prosecutor’s office; 

21 (J) a private juvenile residential care enti22 ty; 

23 (K) a local juvenile public defender’s office; 

24 (L) a State juvenile correctional entity; 


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1 (M) a local business community represent2 ative; and 

3 (N) a local faith-based community rep4 resentative; 

5 (2) shall include two representatives from each 

6 of the following: 

7 (A) parents who have minor children, and 

8 who have an interest in the local juvenile or 

9 criminal justice systems; 

10 (B) youth between the ages of 15 and 24 

11 who reside in the jurisdiction of the unit or 

12 tribe; and 

13 (C) members from nonprofit community14 based organizations that provide effective delin15 quency prevention and intervention to youth in 

16 the jurisdiction of the unit or tribe; and 

17 (3) may include other members, as the unit or 

18 tribe determines to be appropriate. 

19 SEC. 512. NEEDS AND STRENGTHS ASSESSMENT. 

20 (a) ASSESSMENT.—Each PROMISE Coordinating 

21 Council receiving funds from a unit of local government 

22 or Indian tribe under this subtitle shall conduct an objec23 tive strengths and needs assessment of the resources of 

24 the community for which such PROMISE Coordinating 

25 Council was established, to identify the unmet needs of 


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1 youth in the community with respect to evidence-based 

2 and promising practices related to juvenile delinquency 

3 and criminal street gang activity prevention and interven4 tion. Such assessment shall include, with respect to the 

5 community for which such PROMISE Coordinating Coun6 cil was established— 

7 (1) the number of youth who are at-risk of in8 volvement in juvenile delinquency or street gang ac9 tivity; 

10 (2) the number of youth who are involved in ju11 venile delinquency or criminal street gang activity, 

12 including the number of such youth who are at high 

13 risk of continued involvement; 

14 (3) youth unemployment rates during the sum15 mer; 

16 (4) the number of individuals on public finan17 cial assistance (including a breakdown of the num18 bers of men, women, and children on such assist19 ance); 

20 (5) the estimated number of youth who are 

21 chronically truant; 

22 (6) the number of youth who have dropped out 

23 of school in the previous year; 

24 (7) for the year before such assessment, the es25 timated total amount expended (by the community 


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1 and other entities) for the incarceration of offenders 

2 who were convicted or adjudicated delinquent for an 

3 offense that was committed in such community, in4 cluding amounts expended for the incarceration of 

5 offenders in prisons, jails, and juvenile facilities that 

6 are located in the United States but are not located 

7 in such community; 

8 (8) a comparison of the amount under para9 graph (7) with an estimation of the amount that 

10 would be expended for the incarceration of offenders 

11 described in such paragraph if the number of offend12 ers described in such paragraph was equal to the na13 tional average incarceration rate per 100,000 popu14 lation; and 

15 (9) a description of evidence-based and prom16 ising practices related to juvenile delinquency and 

17 criminal street gang activity prevention available for 

18 youth in the community, including school-based pro19 grams, after school programs (particularly programs 

20 that have activities available for youth between 

21 3 p.m. and 6 p.m. in the afternoon), weekend ac22 tivities and programs, youth mentoring programs, 

23 faith and community-based programs, summer ac24 tivities, and summer jobs, if any; and 


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1 (10) a description of evidence-based and prom2 ising intervention practices available for youth in the 

3 community. 

4 (b) LIMITATION ON USE OF ASSESSMENT INFORMA5 TION.—Information gathered pursuant to this section may 

6 be used for the sole purpose of developing a PROMISE 

7 Plan in accordance with this subtitle. 

8 SEC. 513. PROMISE PLAN COMPONENTS. 

9 (a) IN GENERAL.—Each PROMISE Coordinating 

10 Council receiving funds from a unit of local government 

11 or Indian tribe under this subtitle shall develop a PROM12 ISE Plan to provide for the coordination of, and, as appro13 priate, to support the delivery of, evidence-based and 

14 promising practices related to juvenile delinquency and 

15 criminal street gang activity prevention and intervention 

16 to youth and families who reside in the community for 

17 which such PROMISE Coordinating Council was estab18 lished. Such a PROMISE Plan shall— 

19 (1) include the strategy by which the PROM20 ISE Coordinating Council plans to prioritize and al21 locate resources and services toward the unmet 

22 needs of youth in the community, consistent with the 

23 needs and available resources of communities with 

24 the greatest need for assistance, as determined pur25 suant to section 402; 


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1 (2) include a combination of evidence-based and 

2 promising prevention and intervention practices that 

3 are responsive to the needs of the community; and 

4 (3) ensure that cultural and linguistic needs of 

5 the community are met. 

6 (b) MANDATORY COMPONENTS.—Each PROMISE 

7 Plan shall— 

8 (1) include a plan to connect youth identified in 

9 paragraphs (1) and (2) of section 512(a) to evi10 dence-based and promising practices related to juve11 nile delinquency and criminal street gang activity 

12 prevention and intervention; 

13 (2) identify the amount or percentage of local 

14 funds that are available to the PROMISE Coordi15 nating Council to carry out the PROMISE Plan; 

16 (3) provide strategies to improve indigent de17 fense delivery systems, with particular attention 

18 given to groups of children who are disproportion19 ately represented in the State delinquency system 

20 and Federal criminal justice system, as compared to 

21 the representation of such groups in the general 

22 population of the State; 

23 (4) provide for training (which complies with 

24 the American Bar Association Juvenile Justice 

25 Standards for the representation and care of youth 


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1 in the juvenile justice system) of prosecutors, de2 fenders, probation officers, judges and other court 

3 personnel related to issues concerning the develop4 mental needs, challenges, and potential of youth in 

5 the juvenile justice system (including training re6 lated to adolescent development and mental health 

7 issues, and the expected impact of evidence-based 

8 practices and cost reduction strategies); 

9 (5) ensure that the number of youth involved in 

10 the juvenile delinquency and criminal justice systems 

11 does not increase as a result of the activities under12 taken with the funds provided under this subtitle; 

13 (6) describe the coordinated strategy that will 

14 be used by the PROMISE Coordinating Council to 

15 provide at-risk youth with evidence-based and prom16 ising practices related to juvenile delinquency and 

17 criminal street gang activity prevention and inter18 vention; 

19 (7) propose the performance evaluation process 

20 to be used to carry out section 530(d), which shall 

21 include performance measures to assess efforts to 

22 address the unmet needs of youth in the community 

23 with evidence-based and promising practices related 

24 to juvenile delinquency and criminal street gang ac25 tivity prevention and intervention; and 


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1 (8) identify the research partner the PROMISE 

2 Coordinating Council will use to obtain information 

3 on evidence-based and promising practices related to 

4 juvenile delinquency and criminal street gang activ5 ity prevention and intervention, and for the evalua6 tion under section 530(d) of the results of the activi7 ties carried out with funds under this subtitle. 

8 (c) VOLUNTARY COMPONENTS.—In addition to the 

9 components under subsection (b), a PROMISE Plan may 

10 include evidence-based or promising practices related to 

11 juvenile delinquency and criminal street gang activity pre12 vention and intervention in the following categories: 

13 (1) Early childhood development services (such 

14 as pre-natal and neo-natal health services), early 

15 childhood prevention, voluntary home visiting pro16 grams, nurse-family partnership programs, par17 enting and healthy relationship skills training, child 

18 abuse prevention programs, Early Head Start, and 

19 Head Start. 

20 (2) Child protection and safety services (such as 

21 foster care and adoption assistance programs), fam22 ily stabilization programs, child welfare services, and 

23 family violence intervention programs. 

24 (3) Youth and adolescent development services, 

25 including job training and apprenticeship programs, 


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1 job placement and retention training, education and 

2 after school programs (such as school programs with 

3 shared governance by students, teachers, and par4 ents, and activities for youth between the hours of 

5 3 p.m. and 6 p.m. in the afternoon), mentoring pro6 grams, conflict resolution skills training, sports, 

7 arts, life skills, employment and recreation pro8 grams, summer jobs, and summer recreation pro9 grams, and alternative school resources for youth 

10 who have dropped out of school or demonstrate 

11 chronic truancy. 

12 (4) Health and mental health services, includ13 ing cognitive behavioral therapy, play therapy, and 

14 peer mentoring and counseling. 

15 (5) Substance abuse counseling and treatment 

16 services, including harm-reduction strategies. 

17 (6) Emergency, transitional, and permanent 

18 housing assistance (such as safe shelter and housing 

19 for runaway and homeless youth). 

20 (7) Targeted gang prevention, intervention, and 

21 exit services such as tattoo removal, successful mod22 els of anti-gang crime outreach programs (such as 

23 ‘‘street worker’’ programs), and other criminal street 

24 gang truce or peacemaking activities. 


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1 (8) Training and education programs for preg2 nant teens and teen parents. 

3 (9) Alternatives to detention and confinement 

4 programs (such as mandated participation in com5 munity service, restitution, counseling, and intensive 

6 individual and family therapeutic approaches). 

7 (10) Pre-release, post-release, and reentry serv8 ices to assist detained and incarcerated youth with 

9 transitioning back into and reentering the commu10 nity. 

11 SEC. 514. AUTHORIZATION OF APPROPRIATIONS. 

12 Subject to the limitation under section 402(e), there 

13 are authorized to be appropriated for fiscal year 2015, 

14 such sums as may be necessary to carry out this subtitle 

15 and section 402. 

16 Subtitle B—PROMISE 

17 Implementation Grants 

18 SEC. 530. PROMISE IMPLEMENTATION GRANTS AUTHOR19 IZED. 

20 (a) PROMISE IMPLEMENTATION GRANTS AUTHOR21 IZED.—The Administrator of the Office of Juvenile Jus22 tice and Delinquency Prevention is authorized to award 

23 grants to units of local government and Indian tribes to 

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1 menting PROMISE Plans developed pursuant to subtitle 

2 A. 

3 (b) GRANT DURATION AND AMOUNT.— 

4 (1) DURATION.—A grant awarded under this 

5 subtitle shall be for a three-year period. 

6 (2) MAXIMUM GRANT AMOUNT.—A grant 

7 awarded under this subtitle shall not be for more 

8 than $10,000,000 per year for each year of the 

9 grant period. 

10 (c) NON-FEDERAL FUNDS REQUIRED.—For each fis11 cal year during the three-year grant period for a grant 

12 under this subtitle, each unit of local government or In13 dian tribe receiving such a grant for a PROMISE Coordi14 nating Council shall provide, from non-Federal funds, in 

15 cash or in-kind, 25 percent of the costs of the activities 

16 carried out with such grant. 

17 (d) EVALUATION.—Of any funds provided to a unit 

18 of local government or an Indian tribe for a grant under 

19 this subtitle, not more than $100,000 shall be used to pro20 vide a contract to a competitively selected organization to 

21 assess the progress of the unit or tribe in addressing the 

22 unmet needs of youth in the community, in accordance 

23 with the performance measures under section 513(b)(7). 


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1 SEC. 531. PROMISE IMPLEMENTATION GRANT APPLICA2 TION REQUIREMENTS. 

3 (a) APPLICATION REQUIRED.—To be eligible to re4 ceive a PROMISE Implementation grant under this sub5 title, a unit of local government or Indian tribe that re6 ceived a PROMISE Assessment and Planning grant under 

7 subtitle A shall submit an application to the Administrator 

8 of the Office of Juvenile Justice and Delinquency Preven9 tion not later than one year after the date such unit of 

10 local government or Indian tribe was awarded such grant 

11 under subtitle A, in such manner, and accompanied by 

12 such information, as the Administrator, after consultation 

13 with the organization under section 223(f)(1) of the Juve14 nile Justice and Delinquency Prevention Act of 1974 (42 

15 U.S.C. 5633(f)(1)), may require. 

16 (b) CONTENTS OF APPLICATION.—Each application 

17 submitted under subsection (a) shall— 

18 (1) identify potential savings from criminal jus19 tice costs, public assistance costs, and other costs 

20 avoided by utilizing evidence-based and promising 

21 practices related to juvenile delinquency and crimi22 nal street gang activity prevention and intervention; 

23 (2) document— 

24 (A) investment in evidence-based and 

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1 tion and intervention to be provided by the unit 

2 of local government or Indian tribe; 

3 (B) the activities to be undertaken with 

4 the grants funds; 

5 (C) any expected efficiencies in the juvenile 

6 justice or other local systems to be attained as 

7 a result of implementation of the programs 

8 funded by the grant; and 

9 (D) outcomes from such activities, in 

10 terms of the expected numbers related to re11 duced criminal activity; 

12 (3) describe how savings sustained from invest13 ment in prevention and intervention practices will be 

14 reinvested in the continuing implementation of the 

15 PROMISE Plan; and 

16 (4) provide an assurance that the local fiscal 

17 contribution with respect to evidence-based and 

18 promising practices related to juvenile delinquency 

19 and criminal street gang activity prevention and 

20 intervention in the community for which the PROM21 ISE Coordinating Council was established for each 

22 year of the grant period will not be less than the 

23 local fiscal contribution with respect to such prac24 tices in the community for the year preceding the 

25 first year of the grant period. 


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1 SEC. 532. GRANT AWARD GUIDELINES. 

2 (a) SELECTION AND DISTRIBUTION.—Grants award3 ed under this subtitle shall be awarded on a competitive 

4 basis. The Administrator shall— 

5 (1) take such steps as may be necessary to en6 sure that grants are awarded to units of local gov7 ernments and Indian tribes in areas with the highest 

8 concentrations of youth who are— 

9 (A) at-risk of involvement in juvenile delin10 quency or criminal street gang activity; and 

11 (B) involved in juvenile delinquency or 

12 street gang activity and who are at high-risk of 

13 continued involvement; and 

14 (2) give consideration to the need for grants to 

15 be awarded to units of local governments and Indian 

16 tribes in each region of the United States, and 

17 among urban, suburban, and rural areas. 

18 (b) EXTENSION OF GRANT AWARD.—The Adminis19 trator may extend the grant period under section 

20 530(b)(1) for a PROMISE Implementation grant to a unit 

21 of local government or an Indian tribe, in accordance with 

22 regulations issued by the Administrator. 

23 (c) RENEWAL OF GRANT AWARD.—Subject to the 

24 availability of appropriations, the Administrator may 

25 renew a PROMISE Implementation grant to a unit of 

26 local government or an Indian tribe to provide such unit 


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1 or tribe with additional funds to continue implementation 

2 of a PROMISE Plan. Such a renewal— 

3 (1) shall be initiated by an application for re4 newal from a unit of local government or an Indian 

5 tribe; 

6 (2) shall be carried out in accordance with reg7 ulations issued by the Administrator; and 

8 (3) shall not be granted unless the Adminis9 trator determines such a renewal to be appropriate 

10 based on the results of the evaluation conducted 

11 under section 523(a) with respect to the community 

12 of such unit or tribe for which a PROMISE Coordi13 nating Council was established, and for which such 

14 unit or tribe is applying for renewal. 

15 SEC. 533. REPORTS. 

16 Not later than one year after the end of the grant 

17 period for which a unit of local government or an Indian 

18 tribe receives a PROMISE Implementation grant, and an19 nually thereafter for as long as such unit or tribe con20 tinues to receive Federal funding for a PROMISE Coordi21 nating Council, such unit or tribe shall report to the Ad22 ministrator regarding the use of Federal funds to imple23 ment the PROMISE Plan developed under subtitle A. 


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1 SEC. 534. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated to carry out 

3 this subtitle such sums as may be necessary for each of 

4 the fiscal years 2015 through 2017. 

5 Subtitle C—General PROMISE 

6 Grant Provisions 

7 SEC. 540. NONSUPPLANTING CLAUSE. 

8 A unit of local government or Indian tribe receiving 

9 a grant under this title shall use such grant only to supple10 ment, and not supplant, the amount of funds that, in the 

11 absence of such grant, would be available to address the 

12 needs of youth in the community with respect to evidence13 based and promising practices related to juvenile delin14 quency and criminal street gang activity prevention and 

15 intervention. 

16 SEC. 541. GRANT APPLICATION REVIEW PANEL. 

17 The Administrator of the Office of Juvenile Justice 

18 and Delinquency Prevention, in conjunction with the 

19 PROMISE Advisory Panel, shall establish and utilize a 

20 transparent, reliable, and valid system for evaluating ap21 plications for PROMISE Assessment and Planning grants 

22 and for PROMISE Implementation grants, and shall de23 termine which applicants meet the criteria for funding, 

24 based primarily on a determination of greatest need (in 

25 accordance with section 402), with due consideration to 

26 other enumerated factors and the indicated ability of the 


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1 applicant to successfully implement the program described 

2 in the application. 

3 SEC. 542. EVALUATION OF PROMISE GRANT PROGRAMS. 

4 Subject to the availability of appropriations under 

5 this title, the Administrator shall, in consultation with the 

6 organization provided assistance under section 223(f)(1) 

7 of the Juvenile Justice and Delinquency Prevention Act 

8 of 1974 (42 U.S.C. 5633(f)(1)), provide for an evaluation 

9 of the programs and activities carried out with grants 

10 under this title. In carrying out this section, the Adminis11 trator shall— 

12 (1) award grants to institutions of higher edu13 cation (including institutions that are eligible to re14 ceive funds under part F of title III of the Higher 

15 Education Act of 1965 (20 U.S.C. 1067q et seq.), 

16 to facilitate the evaluation process and measurement 

17 of achieved outcomes; 

18 (2) identify evidence-based and promising prac19 tices used by PROMISE Coordinating Councils 

20 under PROMISE Implementation grants that have 

21 proven to be effective in preventing involvement in, 

22 or diverting further involvement in, juvenile delin23 quency or criminal street gang activity; and 

24 (3) ensure— 


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1 (A) that such evaluation is based on the 

2 performance standards that are developed by 

3 the PROMISE Advisory Panel in accordance 

4 with section 223(g) of the Juvenile Justice and 

5 Delinquency Prevention Act of 1974 (as added 

6 by section 401(b) of title IV of this division); 

7 (B) the development of longitudinal and 

8 clinical trial evaluation and performance meas9 urements with regard to the evidence-based and 

10 promising practices funded under this title; and 

11 (C) the dissemination of the practices iden12 tified in paragraph (2) to units of local govern13 ment and Indian tribes to promote the use of 

14 such practices by such units and tribes to pre15 vent involvement in, or to divert further involve16 ment in, juvenile delinquency or criminal street 

17 gang activity. 

18 DIVISION B—HOUSING 

19 TITLE VI—COMMON SENSE 

20 HOUSING INVESTMENT 

21 SEC. 601. CONGRESSIONAL FINDINGS. 

22 The Congress finds the following: 

23 (1) Two principal Federal housing goals are to 

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1 al housing affordable for low-income families and in2 dividuals. 

3 (2) Much more progress has been achieved on 

4 the first goal than on the second goal. 

5 (3) The Federal Government devotes more than 

6 three times the amount of budgetary resources to 

7 supporting home ownership than it devotes to mak8 ing affordable rental housing available. 

9 (4) The burden of housing costs is more pro10 nounced among renters than among owners. 

11 (5) There is a shortage of more than 7 million 

12 homes affordable to families in the bottom 20 per13 cent of income, meaning that there are only 30 af14 fordable units for every 100 families. 

15 (6) Only one in four families that qualify for 

16 rental housing assistance receives benefits. 

17 (7) Housing assistance waiting lists can be 10 

18 years long and in many communities are closed. 

19 (8) The shortage of rental homes that are af20 fordable for extremely low-income households to be 

21 the principal cause of homelessness in the United 

22 States. 

23 (9) Public housing facilities in the United 

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1 tenance after decades of neglect which results in a 

2 loss of 10,000 units each year. 

3 (10) The low-income housing tax credit success4 fully provides 100,000 units of affordable housing 

5 every year. 

6 (11) Every tax reform commission has rec7 ommended capping the mortgage interest deduction 

8 and converting it to a fairer and simpler credit. 

9 (12) More than 75 percent of the value of the 

10 mortgage interest deduction inures to the benefit of 

11 the top 20 percent of earners. 

12 (13) Fewer than half of tax filers with a home 

13 mortgage claim the mortgage interest deduction. 

14 (14) Only 9 percent of rural tax filers claim the 

15 mortgage interest deduction. 

16 (15) Ninety-six percent of homes sold between 

17 2005 and 2011 sold for less than $500,000. 

18 (16) A better approach that provides equitable 

19 benefits for families who buy homes, enables more 

20 low- and moderate-income homeowners to receive a 

21 benefit, and invests in affordable rental housing to 

22 assist those who used to be homeless or who have 

23 extremely or very low incomes is needed to strength24 en families and communities. 


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1 SEC. 602. REPLACEMENT OF MORTGAGE INTEREST DEDUC2 TION WITH MORTGAGE INTEREST CREDIT. 

3 (a) NONREFUNDABLE CREDIT.—Subpart A of part 

4 IV of subchapter A of chapter 1 of the Internal Revenue 

5 Code of 1986 (relating to nonrefundable personal credits) 

6 is amended by inserting after section 25D the following 

7 new section: 

8 ‘‘SEC. 25E. INTEREST ON INDEBTEDNESS SECURED BY 

9 QUALIFIED RESIDENCE. 

10 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in11 dividual, there shall be allowed as a credit against the tax 

12 imposed by this chapter for the taxable year an amount 

13 equal to 15 percent of the qualified residence interest paid 

14 or accrued during the taxable year. 

15 ‘‘(b) QUALIFIED RESIDENCE INTEREST.—For pur16 poses of this section— 

17 ‘‘(1) IN GENERAL.—The term ‘qualified resi18 dence interest’ means interest which is paid or ac19 crued during the taxable year on— 

20 ‘‘(A) acquisition indebtedness with respect 

21 to any qualified residence of the taxpayer, or 

22 ‘‘(B) home equity indebtedness with re23 spect to any qualified residence of the taxpayer. 

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1 dence of the taxpayer shall be made as of the time 

2 the interest is accrued. 

3 ‘‘(2) OVERALL LIMITATION.—The aggregate 

4 amount of indebtedness taken into account for any 

5 period for purposes of this section shall not exceed 

6 $500,000 ($250,000 in the case of a married indi7 vidual filing a separate return). 

8 ‘‘(3) ACQUISITION INDEBTEDNESS.—The term 

9 ‘acquisition indebtedness’ means any indebtedness 

10 which— 

11 ‘‘(A) is incurred in acquiring, constructing, 

12 or substantially improving any qualified resi13 dence of the taxpayer, and 

14 ‘‘(B) is secured by such residence. 

15 Such term also includes any indebtedness secured by 

16 such residence resulting from the refinancing of in17 debtedness meeting the requirements of the pre18 ceding sentence (or this sentence), but only to the 

19 extent the amount of the indebtedness resulting 

20 from such refinancing does not exceed the amount of 

21 the refinanced indebtedness. 

22 ‘‘(4) HOME EQUITY INDEBTEDNESS.— 

23 ‘‘(A) IN GENERAL.—The term ‘home eq24 uity indebtedness’ means any indebtedness 

25 (other than acquisition indebtedness) secured 


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1 by a qualified residence to the extent the aggre2 gate amount of such indebtedness does not ex3 ceed— 

4 ‘‘(i) the fair market value of such 

5 qualified residence, reduced by 

6 ‘‘(ii) the amount of acquisition indebt7 edness with respect to such residence. 

8 ‘‘(B) LIMITATION.—The aggregate amount 

9 treated as home equity indebtedness for any pe10 riod shall not exceed $100,000 ($50,000 in the 

11 case of a married individual filing a separate re12 turn). 

13 ‘‘(c) SPECIAL RULES.—For purposes of this sec14 tion— 

15 ‘‘(1) QUALIFIED RESIDENCE.—The term ‘quali16 fied residence’ means— 

17 ‘‘(A) the principal residence (within the 

18 meaning of section 121) of the taxpayer, and 

19 ‘‘(B) 1 other residence of the taxpayer 

20 which is selected by the taxpayer for purposes 

21 of this subsection for the taxable year and 

22 which is used by the taxpayer as a residence 

23 (within the meaning of section 280A(d)(1)). 


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1 ‘‘(2) MARRIED INDIVIDUALS FILING SEPARATE

2 RETURNS.—If a married couple does not file a joint 

3 return for the taxable year— 

4 ‘‘(A) such couple shall be treated as 1 tax5 payer for purposes of paragraph (1), and 

6 ‘‘(B) each individual shall be entitled to 

7 take into account 1 residence unless both indi8 viduals consent in writing to 1 individual taking 

9 into account the principal residence and 1 other 

10 residence. 

11 ‘‘(3) RESIDENCE NOT RENTED.—For purposes 

12 of paragraph (1)(B), notwithstanding section 

13 280A(d)(1), if the taxpayer does not rent a dwelling 

14 unit at any time during a taxable year, such unit 

15 may be treated as a residence for such taxable year. 

16 ‘‘(4) UNENFORCEABLE SECURITY INTERESTS.— 

17 Indebtedness shall not fail to be treated as secured 

18 by any property solely because, under any applicable 

19 State or local homestead or other debtor protection 

20 law in effect on August 16, 1986, the security inter21 est is ineffective or the enforceability of the security 

22 interest is restricted. 

23 ‘‘(5) SPECIAL RULES FOR ESTATES AND

24 TRUSTS.—For purposes of determining whether any 

25 interest paid or accrued by an estate or trust is 


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1 qualified residence interest, any residence held by 

2 such estate or trust shall be treated as a qualified 

3 residence of such estate or trust if such estate or 

4 trust establishes that such residence is a qualified 

5 residence of a beneficiary who has a present interest 

6 in such estate or trust or an interest in the resid7 uary of such estate or trust. 

8 ‘‘(d) COORDINATION WITH DEDUCTION.—In the case 

9 of any taxable year beginning in calendar years 2014 

10 through 2018, the taxpayer may elect to apply this section 

11 in lieu of the deduction under section 163 for qualified 

12 residence interest.’’. 

13 (b) PHASEOUT OF DEDUCTION.—Section 163(h) of 

14 such Code is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(6) PHASEOUT.— 

17 ‘‘(A) IN GENERAL.—In the case of any 

18 taxable year beginning in a calendar year after 

19 2013, the amount otherwise allowable as a de20 duction by reason of paragraph (2)(D) shall be 

21 the applicable percentage of such amount. 

22 ‘‘(B) APPLICABLE PERCENTAGE.—For 

23 purposes of subparagraph (A), the applicable 

24 percentage shall be determined in accordance 

25 with the following table: 


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‘‘For taxable years beginning in calendar year: The applicable 

percentage is: 

2014 ............................................................................................ 100%

2015 ............................................................................................ 80%

2016 ............................................................................................ 60%

2017 ............................................................................................ 40%

2018 ............................................................................................ 20%

2019 and thereafter .................................................................... 0%.’’. 

1 (c) PHASEDOWN OF MORTGAGE LIMIT.—Subpara2 graph (B) of section 163(h)(3) of such Code is amended 

3 by adding at the end the following: 

4 ‘‘(iii) PHASEDOWN.— 

5 ‘‘(I) IN GENERAL.—In the case 

6 of any taxable year beginning in cal7 endar years 2014 through 2018, 

8 clause (ii) shall be applied by sub9 stituting the amounts specified in the 

10 table in subclause (II) of this clause 

11 for ‘$1,000,000’ and ‘$500,000’, re12 spectively. 

13 ‘‘(II) PHASEDOWN AMOUNTS.— 

14 For purposes of subclause (I), the 

15 amounts specified in this subclause 

16 for a taxable year shall be the 

17 amounts specified in the following 

18 table: 


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‘‘For taxable years beginning in calendar year: 

Amount 

substituted 

for 

$1,000,000: 

Amount 

substituted 

for 

$500,000: 

2014 ........................................................................ $1,000,000 $500,000

2015 ........................................................................ $900,000 $450,000

2016 ........................................................................ $800,000 $400,000

2017 ........................................................................ $700,000 $350,000

2018 ........................................................................ $600,000 $300,000.’’. 

1 (d) CLERICAL AMENDMENT.—The table of sections 

2 for subpart A of part IV of subchapter A of chapter 1 

3 of such Code is amended by inserting after section 25D 

4 the following new item: 

‘‘Sec. 25E. Interest on indebtedness secured by qualified residence.’’. 

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

6 this section shall apply with respect to interest paid or 

7 accrued after December 31, 2013. 

8 SEC. 603. DEDUCTION ALLOWED FOR INTEREST AND TAXES 

9 RELATING TO LAND FOR DWELLING PUR10 POSES OWNED OR LEASED BY COOPERATIVE 

11 HOUSING CORPORATIONS. 

12 (a) IN GENERAL.—Subparagraph (B) of section 

13 216(b)(1) of the Internal Revenue Code of 1986 is amend14 ed by inserting ‘‘or land,’’ after ‘‘building,’’. 

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

16 subsection (a) shall apply to amounts paid or accrued after 

17 December 31, 2012. 


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1 SEC. 604. USE OF MORTGAGE INTEREST SAVINGS TO IN2 CREASE LOW-INCOME HOUSING TAX CREDIT. 

3 (a) IN GENERAL.—Subclause (I) of section 

4 42(h)(3)(C)(ii) of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘$1.75 ($1.50 for 2001)’’ and insert6 ing ‘‘$2.70’’. 

7 (b) INFLATION ADJUSTMENT.—Subparagraph (H) of 

8 section 42(h)(3) of such Code is amended to read as fol9 lows: 

10 ‘‘(H) COST-OF-LIVING ADJUSTMENT.— 

11 ‘‘(i) IN GENERAL.—In the case of a 

12 calendar year after 2002, the $2,000,000 

13 amount in subparagraph (C) shall be in14 creased by an amount equal to— 

15 ‘‘(I) such dollar amount, multi16 plied by 

17 ‘‘(II) the cost-of-living adjust18 ment determined under section 1(f)(3) 

19 for such calendar year by substituting 

20 ‘calendar year 2001’ for ‘calendar 

21 year 1992’ in subparagraph (B) there22 of. 

23 ‘‘(ii) PER CAPITA AMOUNT.—In the 

24 case of a calendar year after 2014, the 

25 $2.70 amount in subparagraph (C) shall 

26 be increased by an amount equal to— 


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1 ‘‘(I) such dollar amount, multi2 plied by 

3 ‘‘(II) the cost-of-living adjust4 ment determined under section 1(f)(3) 

5 for such calendar year by substituting 

6 ‘calendar year 2013’ for ‘calendar 

7 year 1992’ in subparagraph (B) there8 of. 

9 ‘‘(iii) ROUNDING.— 

10 ‘‘(I) In the case of the 

11 $2,000,000 amount, any increase 

12 under clause (i) which is not a mul13 tiple of $5,000 shall be rounded to the 

14 next lowest multiple of $5,000. 

15 ‘‘(II) In the case of the $2.70 

16 amount, any increase under clause (ii) 

17 which is not a multiple of 5 cents 

18 shall be rounded to the next lowest 

19 multiple of 5 cents.’’. 

20 (c) ELIGIBLE BASIS.—Clause (i) of section 

21 42(d)(5)(B) of such Code is amended by striking ‘‘and’’ 

22 at the end of subclause (I), by striking the period at the 

23 end of subclause (II) and inserting ‘‘, and’’, and by adding 

24 at the end the following: 


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1 ‘‘(III) in the case of a building 

2 containing units which are designated 

3 to serve extremely low-income house4 holds by the State housing credit 

5 agency and require the increase in 

6 credit under this subparagraph in 

7 order for such building to be finan8 cially feasible as part of a qualified 

9 low-income housing project, the eligi10 ble basis of such building determined 

11 by the portion of such units shall be 

12 150 percent of such basis determined 

13 without regard to this subpara14 graph.’’. 

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

16 this section shall apply to allocations made in calendar 

17 years beginning after December 31, 2013. 

18 SEC. 605. USE OF MORTGAGE INTEREST SAVINGS FOR AF19 FORDABLE HOUSING PROGRAMS. 

20 (a) USE OF SAVINGS.—For each year, the Secretary 

21 of the Treasury shall determine the amount of revenues 

22 accruing to the general fund of the Treasury by reason 

23 of the enactment of section 602 that remain after use of 

24 such revenues in accordance with section 604 and shall 


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1 credit an amount equal to such remaining revenues as fol2 lows: 

3 (1) HOUSING TRUST FUND.—The Secretary 

4 shall credit the Housing Trust Fund established 

5 under section 1338 of the Federal Housing Enter6 prises Financial Safety and Soundness Act of 1992 

7 (12 U.S.C. 4568) with an amount equal to 60 per8 cent of the amount of such remaining revenues. 

9 (2) SECTION 8 RENTAL ASSISTANCE.—The Sec10 retary shall credit an amount equal to 30 percent of 

11 the amount of such remaining revenues to the Sec12 retary of Housing and Urban Development for use 

13 only for providing tenant- and project-based rental 

14 assistance under section 8 of the United States 

15 Housing Act of 1937 (42 U.S.C. 1437f). 

16 (3) PUBLIC HOUSING CAPITAL FUND.—The 

17 Secretary shall credit an amount equal to 10 percent 

18 of the amount of such remaining revenues to the 

19 Public Housing Capital Fund under section 9(d) of 

20 the United States Housing Act of 1937 (42 U.S.C. 

21 1437g(d)). 

22 (b) CHANGES TO HOUSING TRUST FUND.—Not later 

23 than the expiration of the 6-month period beginning on 

24 the date of the enactment of this Act, the Secretary of 

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1 tions relating to the Housing Trust Fund established 

2 under section 1338 of the Federal Housing Enterprises 

3 Financial Safety and Soundness Act of 1992 (12 U.S.C. 

4 4568) to provide that such section is carried out with the 

5 maximum amount of flexibility possible while complying 

6 with such section, which shall include revising such regula7 tions— 

8 (1) to increase the limitation on amounts from 

9 the Fund that are available for use for operating as10 sistance for housing; 

11 (2) to allow public housing agencies and tribally 

12 designated housing entities to be recipient of grants 

13 amounts from the Fund that are allocated to a State 

14 or State designated entity; and 

15 (3) eliminate the applicability of rules for the 

16 Fund that are based on the HOME Investment 

17 Partnerships Act (42 U.S.C. 1721 et seq.). 

18 TITLE VII—LOW-INCOME HOUS19 ING TAX CREDIT FOR HOME20 LESS YOUTH 

21 SEC. 701. STUDENTS WHO WERE HOMELESS YOUTHS OR 

22 HOMELESS VETERANS PERMITTED TO OC23 CUPY LOW-INCOME HOUSING UNITS. 

24 (a) IN GENERAL.—Section 42(i)(3)(D)(i) of the In25 ternal Revenue Code of 1986 is amended by redesignating 


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1 subclauses (II) and (III) as subclauses (IV) and (V) and 

2 inserting after subclause (I) the following new subclauses: 

3 ‘‘(II) a student who was (prior to 

4 occupying such unit) a homeless child 

5 or youth (as defined in section 725 of 

6 the McKinney-Vento Homeless Assist7 ance Act), 

8 ‘‘(III) a student who was (prior 

9 to occupying such unit) a homeless 

10 veteran (as defined in section 2002 of 

11 title 38, United States Code),’’. 

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

13 this section shall apply to determinations made on or after 

14 the date of the enactment of this Act. 

15 TITLE VIII—RENTERS TAX 

16 CREDIT 

17 SEC. 801. RENTERS TAX CREDIT. 

18 (a) IN GENERAL.—Subpart D of part IV of sub19 chapter A of chapter 1 of the Internal Revenue Code of 

20 1986 is amended by adding at the end the following new 

21 section: 

22 ‘‘SEC. 45S. RENTERS CREDIT. 

23 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

24 the case of a qualified credit recipient, the renters credit 

25 for any taxable year is an amount equal to the sum of 


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1 the renters credit amounts allocated to such qualified 

2 credit recipient under this section for months ending dur3 ing the taxable year. 

4 ‘‘(b) RENTERS CREDIT AMOUNT.— 

5 ‘‘(1) IN GENERAL.—For purposes of this sec6 tion, the term ‘renters credit amount’ means the 

7 rent reduction amount with respect to each rental 

8 unit which is occupied by a qualified renter. 

9 ‘‘(2) QUALIFIED RENTER.—For purposes of 

10 this section, the term ‘qualified renter’ means a fam11 ily unit with income not greater than the higher of— 

12 ‘‘(A) 60 percent of local median income, or 

13 ‘‘(B) 150 percent of the Federal poverty 

14 line, 

15 in each case as determined by the Secretary of 

16 Housing and Urban Development for a family of the 

17 size involved. 

18 ‘‘(3) RENT REDUCTION AMOUNT.—For pur19 poses of this section— 

20 ‘‘(A) IN GENERAL.—The term ‘rent reduc21 tion amount’ is the amount by which the fair 

22 market rent for the unit involved exceeds the 

23 rent charged to the qualified renter. 


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1 ‘‘(B) LIMITATION.—The rent reduction 

2 amount taken into account under this section 

3 shall not exceed the excess of— 

4 ‘‘(i) the rent charged to the qualified 

5 renter (or, if lower, specified modest rent), 

6 over 

7 ‘‘(ii) 30 percent of the qualified rent8 ers income (prorated monthly) as deter9 mined by the renters credit agency of the 

10 State. 

11 ‘‘(C) SPECIFIED MODEST RENT.—The 

12 term ‘specified modest rent’ means— 

13 ‘‘(i) the Fair Market Rent determined 

14 by the Secretary of Housing and Urban 

15 Development for the ZIP code (if the unit 

16 is located in a metropolitan area) or non17 metropolitan county, or 

18 ‘‘(ii) such amount as may be deter19 mined by the State with respect to the 

20 area in which the unit is located if such 

21 amount is within 25 percent of the amount 

22 determined under clause (i) with respect to 

23 such unit. 

24 ‘‘(D) UTILITIES.—The renters credit agen25 cy of the State may determine whether and how 


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1 to take into account the cost of utilities in de2 termining the rent reduction amount. 

3 ‘‘(E) CREDIT ADJUSTMENT.—The renters 

4 credit agency of the State may elect to increase 

5 the rent reduction amount such that such 

6 amount does not exceed 110 percent of such 

7 amount as determined without regard to this 

8 subparagraph. 

9 ‘‘(c) QUALIFIED CREDIT RECIPIENT.—For purposes 

10 of this section, the term ‘qualified credit recipient’ means, 

11 with respect to any rental unit occupied by a qualified 

12 renter, the owner of such unit but only to the extent of 

13 the renters credit amounts which have been allocated to 

14 such person by the renters credit agency. In lieu of the 

15 owner of the unit, the renters credit agency may treat the 

16 lender of any loan to such owner as the qualified credit 

17 recipient if such unit secures such loan. 

18 ‘‘(d) ALLOCATIONS BY RENTERS CREDIT AGENCY TO

19 CREDIT RECIPIENTS.— 

20 ‘‘(1) IN GENERAL.—The renters credit agency 

21 may make allocations of renters credit amounts to 

22 qualified credit recipients under this section on the 

23 basis of— 

24 ‘‘(A) the identity of the qualified renter, 

25 such that the renters credit amount is allowed 


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1 to the owner of any rental unit which such 

2 qualified renter occupies (or the lender referred 

3 to in subsection (c)) for any month, or 

4 ‘‘(B) one or more rental units, such that 

5 the renters credit amount is allowed to the 

6 owner of such units (or the lender referred to 

7 in subsection (c)) for such months as such units 

8 are occupied by a qualified renter. 

9 ‘‘(2) RESTRICTIONS ON UNIT BASED ALLOCA10 TIONS.—A renters credit agency may make alloca11 tions of renters credit as described in paragraph 

12 (1)(B) only if— 

13 ‘‘(A) such units are part of a project or 

14 building in which not more than 40 percent of 

15 the units receive allocations under this section 

16 (the Secretary may provide such exceptions to 

17 the requirement of this subparagraph as the 

18 Secretary determines appropriate for small 

19 buildings or buildings with respect to which 

20 more than 40 percent of the units were pre21 viously subsidized under other Federal pro22 grams), and 

23 ‘‘(B) the Secretary has approved a mobility 

24 plan submitted by such renters credit agency 

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1 sure that qualified renters have the ability to 

2 move from a unit which is eligible for credit 

3 under this section without losing the rent sub4 sidy provided by this section. 

5 ‘‘(e) ALLOCATIONS OF CREDIT AUTHORITY TO

6 STATE AGENCIES.— 

7 ‘‘(1) RENTERS CREDIT DOLLAR AMOUNT FOR

8 AGENCIES.— 

9 ‘‘(A) STATE LIMITATION.—The aggregate 

10 credit amounts which a renters credit agency 

11 may allocate for any calendar year is the por12 tion of the State renters credit ceiling allocated 

13 under this paragraph for such calendar year to 

14 such agency. 

15 ‘‘(B) STATE CEILING INITIALLY ALLO16 CATED TO STATE HOUSING CREDIT AGEN17 CIES.—Except as provided in subparagraphs 

18 (D) and (E), the State renters credit ceiling for 

19 each calendar year shall be allocated to the 

20 renters credit agency of such State. If there is 

21 more than 1 renters credit agency of a State, 

22 all such agencies shall be treated as a single 

23 agency. 

24 ‘‘(C) STATE RENTERS CREDIT CEILING.— 

25 The State renters credit ceiling applicable to 


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1 any State and any calendar year shall be an 

2 amount equal to the sum of— 

3 ‘‘(i) the unused State renters credit 

4 ceiling (if any) of such State for the pre5 ceding calendar year, 

6 ‘‘(ii) the greater of— 

7 ‘‘(I) $17.50 multiplied by the 

8 State population, or 

9 ‘‘(II) $20,000,000, 

10 ‘‘(iii) the amount of State renters 

11 credit ceiling returned in the calendar year, 

12 plus 

13 ‘‘(iv) the amount (if any) allocated 

14 under subparagraph (D) to such State by 

15 the Secretary. 

16 For purposes of clause (i), the unused State 

17 renters credit ceiling for any calendar year is 

18 the excess (if any) of the sum of the amounts 

19 described in clauses (ii) through (iv) over the 

20 aggregate renters credit dollar amount allocated 

21 for such year. 

22 ‘‘(D) UNUSED RENTERS CREDIT

23 CARRYOVERS ALLOCATED AMONG CERTAIN

24 STATES.— 


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1 ‘‘(i) IN GENERAL.—The unused rent2 ers credit carryover of a State for any cal3 endar year shall be assigned to the Sec4 retary for allocation among qualified 

5 States for the succeeding calendar year. 

6 ‘‘(ii) UNUSED RENTERS CREDIT CAR7 RYOVER.—For purposes of this subpara8 graph, the unused renters credit carryover 

9 of a State for any calendar year is the ex10 cess (if any) of— 

11 ‘‘(I) the unused State renters 

12 credit ceiling for the year preceding 

13 such year, over 

14 ‘‘(II) the aggregate renters credit 

15 dollar amount allocated for such year. 

16 ‘‘(iii) FORMULA FOR ALLOCATION OF

17 UNUSED HOUSING CREDIT CARRYOVERS

18 AMONG QUALIFIED STATES.—The amount 

19 allocated under this subparagraph to a 

20 qualified State for any calendar year shall 

21 be the amount determined by the Secretary 

22 to bear the same ratio to the aggregate un23 used renters credit carryovers of all States 

24 for the preceding calendar year as such 

25 State’s population for the calendar year 


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1 bears to the population of all qualified 

2 States for the calendar year. For purposes 

3 of the preceding sentence, population shall 

4 be determined in accordance with section 

5 146(j). 

6 ‘‘(iv) QUALIFIED STATE.—For pur7 poses of this subparagraph, the term 

8 ‘qualified State’ means, with respect to a 

9 calendar year, any State— 

10 ‘‘(I) which allocated its entire 

11 State renters credit ceiling for the 

12 preceding calendar year, and 

13 ‘‘(II) for which a request is made 

14 (not later than May 1 of the calendar 

15 year) to receive an allocation under 

16 clause (iii). 

17 ‘‘(E) APPLICATION OF CERTAIN RULES.— 

18 For purposes of this paragraph, rules similar to 

19 the rules of subparagraphs (E), (F), and (G) of 

20 section 42(h)(3) shall apply. 

21 ‘‘(F) INFLATION ADJUSTMENT.— 

22 ‘‘(i) IN GENERAL.—In the case of a 

23 calendar year after 2013, the $20,000,000 

24 and $17.50 amounts in subparagraph (C) 


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1 shall each be increased by an amount equal 

2 to— 

3 ‘‘(I) such dollar amount, multi4 plied by 

5 ‘‘(II) the cost-of-living adjust6 ment determined under section 1(f)(3) 

7 for such calendar year by substituting 

8 ‘calendar year 2001’ for ‘calendar 

9 year 1992’ in subparagraph (B) there10 of. 

11 ‘‘(ii) ROUNDING.— 

12 ‘‘(I) In the case of the 

13 $20,000,000 amount, any increase 

14 under clause (i) which is not a mul15 tiple of $50,000 shall be rounded to 

16 the next lowest multiple of $50,000. 

17 ‘‘(II) In the case of the $17.50 

18 amount, any increase under clause (i) 

19 which is not a multiple of 50 cents 

20 shall be rounded to the next lowest 

21 multiple of 50 cents. 

22 ‘‘(f) OTHER DEFINITIONS.—For purposes of this sec23 tion— 

24 ‘‘(1) RENTERS CREDIT AGENCY.—The term 

25 ‘renters credit agency’ means, with respect to any 


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1 State, the housing credit agency of such State (as 

2 defined in section 42(h)(8)(A)) or such other agency 

3 as is authorized to carry out the activities of the 

4 renters credit agency under this section. 

5 ‘‘(2) POSSESSIONS TREATED AS STATES.—The 

6 term ‘State’ includes a possession of the United 

7 States. 

8 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

9 such regulations as may be necessary or appropriate to 

10 carry out the purposes of this section.’’. 

11 (b) CREDIT TO BE PART OF GENERAL BUSINESS

12 CREDIT.— 

13 (1) IN GENERAL.—Subsection (b) of section 38 

14 of such Code is amended by striking ‘‘plus’’ at the 

15 end of paragraph (35), by striking the period at the 

16 end of paragraph (36) and inserting ‘‘, plus’’, and 

17 by adding at the end the following new paragraph: 

18 ‘‘(37) the renters credit determined under sec19 tion 45S(a).’’. 

20 (2) CREDIT ALLOWABLE AGAINST ALTERNATIVE

21 MINIMUM TAX.—Subparagraph (B) of section 

22 38(c)(4) of such Code is amended by redesignating 

23 clauses (vii) through (ix) as clauses (viii) through 

24 (x), respectively, and by inserting after clause (vi) 

25 the following new clause: 


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1 ‘‘(vii) the credit determined under sec2 tion 45S,’’. 

3 (c) CLERICAL AMENDMENT.—The table of sections 

4 for subpart D of part IV of subchapter A of chapter 1 

5 of such Code is amended by adding at the end the fol6 lowing new item: 

‘‘Sec. 45S. Renters credit.’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to allocations made for calendar 

9 years after 2014 and to taxable years ending after Decem10 ber 31, 2014. 

11 DIVISION C—NUTRITION 

12 TITLE IX—IMPROVING TEM13 PORARY ASSISTANCE TO 

14 NEEDY FAMILIES PROGRAM 

15 SEC. 901. REFERENCES. 

16 Except as otherwise expressly provided in this title, 

17 wherever in this title an amendment or repeal is expressed 

18 in terms of an amendment to, or repeal of, a section or 

19 other provision, the amendment or repeal shall be consid20 ered to be made to a section or other provision of the So21 cial Security Act. 


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1 SEC. 902. STATE PLANS REQUIRED TO ADDRESS WHETHER 

2 AND HOW STATES WILL PROVIDE ASSIST3 ANCE TO NEEDIEST GEOGRAPHIC AREAS. 

4 Section 402(a)(1)(A)(i) (42 U.S.C. 602(a)(1)(A)(i)) 

5 is amended by inserting ‘‘, including whether and how the 

6 State will give priority to providing benefits and services 

7 in areas of the State with the greatest need (such as areas 

8 with the greatest unemployment rates, the greatest pov9 erty rates, and the least job opportunity to population ra10 tios)’’ before the period. 

11 SEC. 903. FUNDING OF THE TANF PROGRAM. 

12 (a) STATE FAMILY ASSISTANCE GRANT.— 

13 (1) IN GENERAL.—Section 403(a)(1) (42 

14 U.S.C. 603(a)(1)) is amended— 

15 (A) in subparagraph (A), by striking ‘‘fis16 cal year 2012’’ and inserting ‘‘fiscal year 2013 

17 and each succeeding fiscal year’’; and 

18 (B) by striking subparagraphs (B) and (C) 

19 and inserting the following: 

20 ‘‘(B) STATE FAMILY ASSISTANCE

21 GRANT.— 

22 ‘‘(i) IN GENERAL.—The State family 

23 assistance grant payable to a State for a 

24 fiscal year shall be the greater of— 

25 ‘‘(I) the adjusted basic block 

26 grant, plus the amount required to be 


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1 paid to the State under paragraph (3) 

2 (as in effect on September 30, 2010) 

3 for fiscal year 2010; or 

4 ‘‘(II) the amount required to be 

5 paid to the State under this para6 graph for the preceding fiscal year. 

7 ‘‘(ii) ADJUSTED BASIC BLOCK

8 GRANT.—In clause (i), the term ‘adjusted 

9 block grant’ means, with respect to a 

10 State, the product of— 

11 ‘‘(I) the amount required to be 

12 paid to the State under this para13 graph for fiscal year 2010 (deter14 mined without regard to any reduction 

15 pursuant to section 409 or 412(a)(1)); 

16 ‘‘(II) 1.00, plus the percentage 

17 (if any) by which the average of the 

18 CPI for the 12-month period ending 

19 with June of the preceding fiscal year 

20 exceeds the average of the CPI for the 

21 12-month period ending with June 

22 1996, expressed as a decimal; and 

23 ‘‘(III) 1.00, plus the percentage 

24 (if any) by which the most recent esti25 mate by the Bureau of the Census of 


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1 the population of the State that has 

2 not attained 18 years of age exceeds 

3 the most recent estimate by the Bu4 reau of the Census of that population 

5 as of July 1, 1996, expressed as a 

6 decimal. 

7 ‘‘(iii) CPI DEFINED.—In clause (ii), 

8 the term ‘CPI’ means the last Consumer 

9 Price Index for All Urban Consumers pub10 lished by the Department of Labor for the 

11 period involved. 

12 ‘‘(C) APPROPRIATION.—Out of any money 

13 in the Treasury of the United States not other14 wise appropriated, there are appropriated such 

15 sums as are necessary for grants under this 

16 paragraph for each fiscal year.’’. 

17 (2) CONFORMING AMENDMENT TO ELIMINATE

18 SUPPLEMENTAL GRANTS FOR POPULATION IN19 CREASES IN CERTAIN STATES.—Section 403(a) (42 

20 U.S.C. 603(a)) is amended by striking paragraph 

21 (3). 

22 (b) PENALTY FOR FAILURE TO MAINTAIN EFFORT

23 ADJUSTED FOR INFLATION.—Section 409(a)(7) (42 

24 U.S.C. 609(a)(7)) is amended— 


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1 (1) in subparagraph (A), by inserting ‘‘the in2 flation-adjusted’’ before ‘‘historic State expendi3 tures’’; and 

4 (2) in subparagraph (B), by redesignating 

5 clauses (iii) through (v) as clauses (iv) through (vi), 

6 respectively, and inserting after clause (ii) the fol7 lowing: 

8 ‘‘(iii) INFLATION-ADJUSTED HISTORIC

9 STATE EXPENDITURES.—The term ‘infla10 tion-adjusted historic State expenditures’ 

11 means, with respect to a fiscal year— 

12 ‘‘(I) historic State expenditures; 

13 multiplied by 

14 ‘‘(II) 1.00, plus (in the case of 

15 fiscal year 2014 or any succeeding fis16 cal year) the percentage (if any) by 

17 which the average of the CPI (as de18 fined in section 403(a)(1)(B)(iii)) for 

19 the 12-month period ending with June 

20 of the preceding fiscal year exceeds 

21 the average of the CPI (as so defined) 

22 for the 12-month period ending with 

23 June 2012, expressed as a decimal.’’. 

24 (c) MODIFICATION OF CONTINGENCY FUND.— 


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

2 603(b)) is amended by striking all that follows para3 graph (1) and inserting the following: 

4 ‘‘(2) GRANTS.— 

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

6 make a grant to each eligible State and each 

7 Indian tribe that is an economically needy enti8 ty for a calendar quarter, in an amount equal 

9 to 80 percent of the amount (if any) by which 

10 the total amount of relevant expenditures of the 

11 entity for the quarter exceeds the total amount 

12 of the relevant expenditures of the entity for 

13 the corresponding quarter in the base year of 

14 the entity, subject to paragraph (2). 

15 ‘‘(B) LIMITATION.—The total amount pay16 able to an entity under this subsection for a fis17 cal year shall not exceed an amount equal to 25 

18 percent of the amount payable to the entity— 

19 ‘‘(i) if the entity is a State, under sec20 tion 403(a)(1) for the fiscal year; or 

21 ‘‘(ii) if the entity is an Indian tribe, 

22 under section 412(a)(1) for the fiscal year. 

23 ‘‘(3) DEFINITIONS.—In paragraph (2): 


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1 ‘‘(A) ECONOMICALLY NEEDY ENTITY.— 

2 The term ‘economically needy entity’ means an 

3 entity with respect to a calendar quarter— 

4 ‘‘(i) if the seasonally adjusted average 

5 unemployment rate with respect to entity 

6 for the quarter or any of the preceding 4 

7 calendar quarters exceeds 6.5 percent; or 

8 ‘‘(ii) in the case that the unemploy9 ment rate information described in clause 

10 (i) is not available with respect to the enti11 ty, if the entity meets such qualifications 

12 as the Secretary, in consultation with the 

13 Secretary of Labor, shall, by regulation, 

14 prescribe. 

15 ‘‘(B) BASE YEAR.—The term ‘base year’ 

16 means, with respect to an entity, and a cal17 endar quarter in a fiscal year— 

18 ‘‘(i) except as provided in clause (ii), 

19 whichever of the 2 fiscal years most re20 cently preceding the 1st fiscal year of the 

21 most recent contingency fund eligibility pe22 riod for the entity, is the fiscal year in 

23 which the relevant expenditures of the enti24 ty were the lesser; or 


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1 ‘‘(ii) if the 1st year of the period re2 ferred to in clause (i) is fiscal year 2014, 

3 whichever of fiscal year 2007 or 2008 is 

4 the fiscal year in which the relevant ex5 penditures of the entity were the lesser. 

6 ‘‘(C) CONTINGENCY FUND ELIGIBILITY PE7 RIOD.—The term ‘contingency fund eligibility 

8 period’ means, with respect to an entity, a pe9 riod of 1 or more consecutive calendar quarters 

10 for which the entity is an economically needy 

11 entity. 

12 ‘‘(D) RELEVANT EXPENDITURES.— 

13 ‘‘(i) IN GENERAL.—The term ‘relevant 

14 expenditures’ means expenditures— 

15 ‘‘(I) for assistance under the pro16 gram funded under this part of the 

17 entity (including, in the case of a 

18 State, any qualified State expendi19 tures (as defined in section 

20 409(a)(7)(B)(i)) and any expenditures 

21 under any other State program fund22 ed by such expenditures); 

23 ‘‘(II) for child care; 

24 ‘‘(III) for subsidized employment 

25 under the program funded under this 


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1 part of the entity (including, in the 

2 case of a State, such expenditures 

3 under any other State program fund4 ed by qualified State expenditures (as 

5 defined in section 409(a)(7)(B)(i))), 

6 other than expenditures made using 

7 Federal funds or with respect to 

8 which the entity received a grant 

9 made under paragraph (3) of this 

10 subsection; and 

11 ‘‘(IV) for administrative costs as12 sociated with making the expenditures 

13 referred to in the preceding sub14 clauses of this clause. 

15 ‘‘(ii) CHILD CARE EXPENDITURES.— 

16 For purposes of clause (i), expenditures for 

17 child care consist of the following: 

18 ‘‘(I) Amounts transferred under 

19 section 404(d)(1)(B). 

20 ‘‘(II) Expenditures for child care 

21 assistance from Federal funds pro22 vided under this part. 

23 ‘‘(III) In the case of an entity 

24 that is a State, expenditures for child 

25 care assistance that are qualified 


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1 State expenditures (as defined in sec2 tion 409(a)(7)(B)(i)), but only to the 

3 extent exceeding the total expendi4 tures of the State (other than from 

5 Federal funds) for child care in fiscal 

6 year 1994 or 1995 (whichever is the 

7 greater). 

8 ‘‘(iii) AUTHORITY TO COLLECT AND

9 ADJUST DATA.—In determining the 

10 amount of the expenditures of a State for 

11 basic assistance, child care, and subsidized 

12 employment, during any period for which 

13 the State requests funds under this sub14 section, and during the base year of the 

15 State, the Secretary may make appropriate 

16 adjustments to the data, on a State-by17 State basis, to ensure that the data are 

18 comparable with respect to the groups of 

19 families served and the types of aid pro20 vided. The Secretary may develop a mecha21 nism for collecting expenditure data, in22 cluding procedures which allow States to 

23 make reasonable estimates, and may set 

24 deadlines for making revisions to the data. 


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1 ‘‘(4) USE OF GRANT.—Each State to which a 

2 grant is made under this subsection shall use the 

3 grant to serve areas of the State with the greatest 

4 need (as referred to in section 402(a)(1)(A)). 

5 ‘‘(5) APPROPRIATION.— 

6 ‘‘(A) IN GENERAL.—Out of any funds in 

7 the Treasury of the United States not otherwise 

8 appropriated, there are appropriated for pay9 ment to the Fund— 

10 ‘‘(i) $2,500,000,000 for fiscal year 

11 2014; and 

12 ‘‘(ii) for each succeeding fiscal year, 

13 the amount appropriated under this para14 graph for the then preceding fiscal year, 

15 increased by the percentage (if any) by 

16 which the amount appropriated under sec17 tion 403(a)(1) for the fiscal year involved 

18 exceeds the amount appropriated under 

19 such section for the then preceding fiscal 

20 year. 

21 ‘‘(B) AVAILABILITY.—Amounts made 

22 available under this paragraph for a fiscal year 

23 shall remain available until expended. 

24 ‘‘(6) ACTIONS TO BE TAKEN IN ANTICIPATION

25 OF EXHAUSTION OF FUND.—The Secretary shall 


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1 monitor the amount in, and the rate at which 

2 amounts are paid from, the Fund, and if the Sec3 retary determines that the Fund will be exhausted 

4 within 6 months, the Secretary shall— 

5 ‘‘(A) notify the Congress of the determina6 tion; and 

7 ‘‘(B) develop and communicate to each 

8 State and Indian tribe that is an economically 

9 needy entity as of the date of the determina10 tion, the procedure for allocating amounts in 

11 the Fund among such entities.’’. 

12 (2) ELIMINATION OF PENALTY FOR FAILURE

13 OF STATE RECEIVING AMOUNTS FROM CONTINGENCY

14 FUND TO MAINTAIN 100 PERCENT OF HISTORIC EF15 FORT.— 

16 (A) IN GENERAL.—Section 409(a) (42 

17 U.S.C. 609(a)) is amended by striking para18 graph (10) and redesignating paragraphs (11) 

19 through (16) as paragraphs (10) through (15), 

20 respectively. 

21 (B) CONFORMING AMENDMENTS.—Section 

22 409 (42 U.S.C. 609) is amended in each of sub23 sections (b)(2) and (c)(4), by striking ‘‘(10), 

24 (12), or (13)’’ and inserting ‘‘(11), or (12)’’. 


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1 (3) CONFORMING AMENDMENT.—Section 

2 409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) is amended 

3 by striking ‘‘needy State (as defined in section 

4 403(b)(6))’’ and inserting ‘‘economically needy enti5 ty (as defined in section 403(b)(3)(A))’’. 

6 (4) AMOUNTS PROVIDED TO TERRITORIES

7 FROM THE CONTINGENCY FUND TO BE DIS8 REGARDED FOR PURPOSES OF LIMITATION ON PAY9 MENTS TO THE TERRITORIES.—Section 1108(a)(2) 

10 (42 U.S.C. 1308(a)(2)) is amended by inserting 

11 ‘‘403(b),’’ before ‘‘406,’’. 

12 (d) MATCHING GRANTS FOR SUBSIDIZED EMPLOY13 MENT.— 

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

15 603(a)), as amended by subsection (a)(2) of this sec16 tion, is further amended by inserting after para17 graph (2) the following: 

18 ‘‘(3) MATCHING GRANTS FOR SUBSIDIZED EM19 PLOYMENT.— 

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

21 make a grant— 

22 ‘‘(i) to each eligible State that is 1 of 

23 the 50 States or the District of Columbia, 

24 for each fiscal year for which the State is 

25 an MOE State; and 


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1 ‘‘(ii) to each State that is not 1 of the 

2 50 States or the District of Columbia, and 

3 to each Indian tribe, for each fiscal year 

4 for which the State or tribe, as the case 

5 may be, meets such terms and conditions 

6 as the Secretary shall, by regulation, estab7 lish, which shall be comparable to the 

8 terms and conditions under which grants 

9 are made under clause (i). 

10 ‘‘(B) MOE STATE.—In subparagraph (A), 

11 the term ‘MOE State’ means a State if the 

12 qualified expenditures of the State (as defined 

13 in section 409(a)(7)(B)(i)) for the fiscal year 

14 exceeds the applicable percentage (as defined in 

15 clause (ii) of such section) of inflation-adjusted 

16 historic State expenditures (as defined in clause 

17 (iii) of such section) of the State with respect 

18 to the fiscal year. 

19 ‘‘(C) AMOUNT OF GRANT.— 

20 ‘‘(i) STATES.— 

21 ‘‘(I) IN GENERAL.—The grant to 

22 be made to a State under subpara23 graph (A)(i) for a fiscal year shall be 

24 in an amount equal to 50 percent of 

25 the excess expenditures of the State 


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1 for subsidized employment during the 

2 fiscal year. 

3 ‘‘(II) EXCESS EXPENDITURES OF

4 THE STATE FOR SUBSIDIZED EMPLOY5 MENT.—The term ‘excess expendi6 tures of the State for subsidized em7 ployment’ means, with respect to a 

8 fiscal year, the lesser of— 

9 ‘‘(aa) the excess described in 

10 subparagraph (B) with respect to 

11 the State for the fiscal year; or 

12 ‘‘(bb) an amount equal to 

13 the total expenditures of the 

14 State for subsidized employment 

15 funded under this part or under 

16 any other State program funded 

17 by qualified State expenditures 

18 (as defined in section 

19 409(a)(7)(B)(i)), excluding those 

20 with respect to which a grant is 

21 made to the State under sub22 section (b) of this section, during 

23 the fiscal year. 

24 ‘‘(ii) INDIAN TRIBES.—The grant to 

25 be made to an Indian tribe under this 


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1 paragraph shall be in such amount as the 

2 Secretary deems appropriate. 

3 ‘‘(D) USE OF GRANT.—Notwithstanding 

4 section 404, a State or Indian tribe to which a 

5 grant is made under this paragraph shall use 

6 the grant solely to finance subsidized employ7 ment activities, and to serve areas of the State 

8 with the greatest need (as referred to in section 

9 402(a)(1)(A)). 

10 ‘‘(E) APPROPRIATION.—Out of any funds 

11 in the Treasury of the United States not other12 wise appropriated, there are appropriated such 

13 sums as are necessary for grants under this 

14 paragraph for each fiscal year.’’. 

15 (2) AMOUNTS PROVIDED TO TERRITORIES

16 FROM THE MATCHING GRANT TO BE DISREGARDED

17 FOR PURPOSES OF LIMITATION ON PAYMENTS TO

18 THE TERRITORIES.—Section 1108(a)(2) (42 U.S.C. 

19 1308(a)(2)) is amended by inserting ‘‘403(a)(3),’’ 

20 after ‘‘403(a)(2),’’. 

21 (3) DATA REPORTS REQUIRED WITH RESPECT

22 TO FAMILIES THAT INCLUDE AN INDIVIDUAL PAR23 TICIPATING IN SUBSIDIZED EMPLOYMENT PRO24 GRAMS.—Section 411(a)(1)(A) (42 U.S.C. 

25 611(a)(1)(A)) is amended, in the matter before 


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1 clause (i), by inserting ‘‘, and families that include 

2 an individual participating in subsidized employment 

3 funded with Federal funds or qualified State expend4 itures (as so defined)’’ before the colon. 

5 (e) TRIBAL FAMILY ASSISTANCE GRANTS.—Section 

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

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

8 year 2012’’ and inserting ‘‘each fiscal year’’; and 

9 (2) in subparagraph (B)— 

10 (A) by redesignating clause (ii) as clause 

11 (iii); and 

12 (B) by striking clause (i) and inserting the 

13 following: 

14 ‘‘(i) IN GENERAL.—The amount de15 termined under this subparagraph for a 

16 fiscal year is an amount equal to the sum 

17 of the adjusted historic expenditures for 

18 the fiscal year with respect to each State 

19 in which there lies a service area of the In20 dian tribe is located. 

21 ‘‘(ii) ADJUSTED HISTORIC EXPENDI22 TURES DEFINED.—In clause (i), the term 

23 ‘adjusted historic expenditures’ means, 

24 with respect to a fiscal year, a State, and 

25 an Indian tribe, the total amount of the 


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1 Federal payments to the State under sec2 tion 403 (as then in effect) for fiscal year 

3 1994 attributable to expenditures (other 

4 than child care expenditures) by the State 

5 under parts A and F (as so in effect) for 

6 fiscal year 1994 for Indian families resid7 ing in the service areas identified by the 

8 tribe pursuant to subsection (b)(1)(C) of 

9 this section that are in the State, increased 

10 by the percentage (if any) by which the 

11 amount of the grant payable under section 

12 403(a)(1) for the fiscal year to the State 

13 exceeds the amount of the grant so payable 

14 to the State for fiscal year 2010.’’. 

15 (f) CENSUS BUREAU STUDY.—Section 414 (42 

16 U.S.C. 614) is amended— 

17 (1) by striking subsection (a) and inserting the 

18 following: 

19 ‘‘(a) IN GENERAL.—The Director of the Bureau of 

20 the Census shall conduct a study to assess the effects of 

21 policies and programs related to low-income families, in22 cluding policies and programs under State programs fund23 ed under this part or funded with qualified State expendi24 tures (as defined in section 409(a)(7)(B)(i)), including 

25 changes and policies in such programs made pursuant to 


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1 the Rewriting to Improve and Secure an Exit Out of Pov2 erty Act. The Director shall design the study in consulta3 tion with the Secretary. Every 5 years, the Director shall, 

4 in consultation with the Secretary, revise the content and 

5 nature of the study to reflect emerging policy issues re6 lated to low-income families.’’; and 

7 (2) in subsection (b), by striking ‘‘fiscal year 

8 2012’’ and inserting ‘‘each fiscal year’’. 

9 (g) FUNDING OF STUDIES AND EVALUATIONS.—Sec10 tion 413(h)(1) (42 U.S.C. 613(h)(1)) is amended by strik11 ing ‘‘fiscal year 2012’’ and inserting ‘‘each fiscal year’’. 

12 (h) MATCHING GRANTS TO CERTAIN TERRI13 TORIES.—Section 1108 (42 U.S.C. 1308) is amended— 

14 (1) in subsection (a)(2), by inserting ‘‘section 

15 403(a)(1) (to the extent exceeding the amount re16 quired to be so paid to the territory for fiscal year 

17 2011),’’ before ‘‘403(a)(2)’’; and 

18 (2) in subsection (b)(2), by striking ‘‘fiscal year 

19 2012’’ and inserting ‘‘each fiscal year’’. 

20 SEC. 904. WORK REQUIREMENTS. 

21 (a) PARTICIPATION RATE REQUIREMENT.—Section 

22 407 (42 U.S.C. 607) is amended by striking subsections 

23 (a) and (b) and inserting the following: 

24 ‘‘(a) PARTICIPATION RATE REQUIREMENT.— 


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

2 is made under section 403 for a fiscal year shall 

3 achieve a minimum participation rate of 50 percent 

4 with respect to all families residing in the State that 

5 include a work-eligible individual. 

6 ‘‘(2) WORK-ELIGIBLE INDIVIDUAL DEFINED.— 

7 ‘‘(A) IN GENERAL.—In subsection (a), the 

8 term ‘work-eligible individual’, subject to sub9 paragraphs (B) and (C), means— 

10 ‘‘(i) an adult recipient of assistance 

11 under the State program funded under this 

12 part or under any other State program 

13 funded by qualified State expenditures (as 

14 defined in section 409(a)(7)(B)(i)); 

15 ‘‘(ii) a former recipient of such assist16 ance who is— 

17 ‘‘(I) a parent of a dependent 

18 child who is such a recipient; and 

19 ‘‘(II) no longer eligible for assist20 ance under the State program funded 

21 under this part by reason of section 

22 408(a)(7); and 

23 ‘‘(iii) a participant in a subsidized em24 ployment program funded under this part 

25 or under any other State program funded 


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1 by qualified State expenditures (as defined 

2 in section 409(a)(7)(B)(i)). 

3 ‘‘(B) EXCLUSION OF INDIVIDUALS SANC4 TIONED OR UNDERGOING PRE-SANCTION RE5 VIEW.—The term ‘work-eligible individual’ does 

6 not include any individual with respect to 

7 whom— 

8 ‘‘(i) there is in effect a penalty im9 posed by the State under subsection (e) of 

10 this section; or 

11 ‘‘(ii) the State has initiated (but not 

12 completed) the pre-sanction review process 

13 pursuant to section 408(a)(14)(A). 

14 ‘‘(C) STATE OPTION TO EXCLUDE CERTAIN

15 INDIVIDUALS.—A State may exclude from the 

16 term ‘work-eligible individual’ any resident of 

17 the State who is— 

18 ‘‘(i) a single parent caring for a child 

19 who has not attained 1 year of age; 

20 ‘‘(ii) a recipient of supplemental secu21 rity income benefits under title XVI, dis22 ability insurance benefits under title II, or 

23 other Federal or State benefits based on 

24 disability; 


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1 ‘‘(iii) an applicant for supplemental 

2 security income benefits under title XVI; 

3 ‘‘(iv) an individual who is needed in 

4 the home of the individual to care for a 

5 disabled member of the family of the indi6 vidual; or 

7 ‘‘(v) an individual who (but for the ex8 ercise of the State option under this 

9 clause) would be a work-eligible individual 

10 under a tribal family assistance plan ap11 proved under section 412 or under a tribal 

12 work program to which funds are provided 

13 under this part. 

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

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

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

17 for a fiscal year is the average of the participation 

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

19 ‘‘(2) MONTHLY PARTICIPATION RATE.—For 

20 purposes of paragraph (1), the participation rate of 

21 a State for a month, expressed as a percentage, is— 

22 ‘‘(A) the number of families residing in the 

23 State that include a work-eligible individual who 

24 is engaged in work for the month; divided by 


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1 ‘‘(B) the number of families residing in the 

2 State that include a work-eligible individual.’’. 

3 (b) PARTICIPATION REQUIREMENTS.—Section 

4 407(c) (42 U.S.C. 607(c)) is amended to read as follows: 

5 ‘‘(c) ENGAGED IN WORK.—For purposes of sub6 section (b): 

7 ‘‘(1) GENERAL RULE.—An individual is en8 gaged in work for a month in a fiscal year if the re9 cipient is participating in work activities for an aver10 age of at least 20 hours per week during the month. 

11 ‘‘(2) INDIVIDUALS COMPLYING WITH A MODI12 FIED EMPLOYABILITY PLAN DEEMED TO BE EN13 GAGED IN WORK.—An individual is deemed to be en14 gaged in work for a month if the State determines 

15 that the individual is in substantial compliance with 

16 the activities and hourly participation requirements 

17 of a modified employability plan developed for the 

18 individual in accordance with section 408(h). 

19 ‘‘(3) SINGLE TEEN HEAD OF HOUSEHOLD OR

20 MARRIED TEEN WHO MAINTAINS SATISFACTORY

21 SCHOOL ATTENDANCE DEEMED TO BE ENGAGED IN

22 WORK.—An individual who is married or a head of 

23 household and has not attained 20 years of age is 

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1 cipient maintains satisfactory attendance at sec2 ondary school or the equivalent during the month.’’. 

3 (c) ELIMINATION OF 12-MONTH LIMIT ON COUNTING

4 VOCATIONAL EDUCATIONAL TRAINING AS A WORK ACTIV5 ITY.—Section 407(d)(8) (42 U.S.C. 607(d)(8)) is amend6 ed by striking ‘‘(not to exceed 12 months with respect to 

7 any individual)’’. 

8 SEC. 905. WORK RULES. 

9 (a) OPTION OF RECIPIENT TO HAVE TRAINED PER10 SONNEL ASSESS CERTAIN BARRIERS TO EMPLOYMENT; 

11 ADDITIONAL MATTERS REQUIRED TO BE ASSESSED.— 

12 Section 408(b)(1) (42 U.S.C. 608(b)(1)) is amended— 

13 (1) by inserting ‘‘(which, at the option of the 

14 recipient, shall be conducted by trained personnel 

15 with respect to barriers to employment specified by 

16 the recipient)’’ after ‘‘assessment’’; and 

17 (2) by striking ‘‘and employability’’ and insert18 ing ‘‘employability, physical and mental impair19 ments, English proficiency, child care needs, and 

20 whether the recipient is a victim of domestic or sex21 ual violence,’’. 

22 (b) INDIVIDUAL RESPONSIBILITY PLANS.— 

23 (1) PLANS REQUIRED; PLANS TO INCLUDE

24 WELL-BEING PLANS FOR CHILDREN.—Section 


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1 408(b)(2)(A) (42 U.S.C. 608(b)(2)(A)) is amend2 ed— 

3 (A) in the matter preceding clause (i), by 

4 striking ‘‘may’’ and inserting ‘‘shall’’; 

5 (B) in clause (iv)— 

6 (i) by inserting ‘‘, supports,’’ after 

7 ‘‘counseling’’; and 

8 (ii) by striking ‘‘and’’ at the end; 

9 (C) in clause (v), by striking the period 

10 and inserting ‘‘; and’’; and 

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

12 ‘‘(vi) describe a well-being plan for 

13 each child in the family.’’. 

14 (2) DEADLINE FOR COMPLETION OF PLAN.— 

15 Section 408(b)(2)(B) (42 U.S.C. 608(b)(2)(B)) is 

16 amended by striking ‘‘individual—’’ and all that fol17 lows and inserting ‘‘individual within 90 days after 

18 the individual is determined eligible for the assist19 ance.’’. 

20 (3) SANCTION FOR FAILURE OF STATE TO DE21 VELOP PLAN.—Section 409(a) (42 U.S.C. 609(a)), 

22 as amended by section 903(c)(2)(A) of this title, is 

23 amended by adding at the end the following: 


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1 ‘‘(16) PENALTY FOR FAILURE OF STATE TO DE2 VELOP REQUIRED INDIVIDUAL RESPONSIBILITY

3 PLAN.— 

4 ‘‘(A) IN GENERAL.—If the Secretary deter5 mines that a State to which a grant is made 

6 under section 403 in a fiscal year has violated 

7 section 408(b)(2) during the fiscal year, the 

8 Secretary shall reduce the grant payable to the 

9 State under section 403(a)(1) for the imme10 diately succeeding fiscal year by an amount 

11 equal to not more than 5 percent of the State 

12 family assistance grant. 

13 ‘‘(B) PENALTY BASED ON SEVERITY OF

14 FAILURE.—The Secretary shall impose reduc15 tions under subparagraph (A) with respect to a 

16 fiscal year based on the degree of noncompli17 ance.’’. 

18 (4) CONFORMING AMENDMENT.—Section 

19 408(b) (42 U.S.C. 608(b)) is amended by striking 

20 paragraph (4). 

21 (c) MODIFIED EMPLOYABILITY PLANS FOR CERTAIN

22 INDIVIDUALS WITH DISABILITIES.—Section 408 (42 

23 U.S.C. 608) is amended by adding at the end the fol24 lowing: 


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1 ‘‘(h) AUTHORITY TO DEVELOP MODIFIED EMPLOY2 ABILITY PLAN FOR A RECIPIENT OF ASSISTANCE WITH, 

3 OR CARING FOR A FAMILY MEMBER WITH, A DIS4 ABILITY.— 

5 ‘‘(1) IN GENERAL.—A State may develop a 

6 modified employability plan for a recipient of assist7 ance under the State program funded under this 

8 part— 

9 ‘‘(A) who— 

10 ‘‘(i) is a work-eligible individual (as 

11 defined in section 407(a)(2)); and 

12 ‘‘(ii) has been determined by a quali13 fied medical, mental health, addiction, or 

14 social services professional (as determined 

15 by the State) to have a disability; or 

16 ‘‘(B) who is caring for a family member 

17 with a disability (as so determined). 

18 ‘‘(2) CONTENTS OF PLAN.—The modified em19 ployability plan shall— 

20 ‘‘(A) include a determination that, because 

21 of the disability of the recipient or the indi22 vidual for whom the recipient is caring, reason23 able modification of work activities, hourly par24 ticipation requirements, or both, is needed in 


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1 order for the recipient to participate in the ac2 tivities; 

3 ‘‘(B) describe the modified work activities 

4 in which the recipient is required to participate; 

5 ‘‘(C) specify the number of hours per week 

6 for which the recipient is required to participate 

7 in the modified work activities, based on an 

8 evaluation by the State of the circumstances of 

9 the family; 

10 ‘‘(D) describe the services, supports, and 

11 modifications that the State will provide to the 

12 recipient or the family of the recipient; 

13 ‘‘(E) be developed in cooperation with the 

14 recipient; and 

15 ‘‘(F) be reviewed not less often than every 

16 6 months. 

17 ‘‘(3) DEFINITIONS.—In this subsection: 

18 ‘‘(A) DISABILITY.—The term ‘disability’ 

19 means a mental or physical impairment, includ20 ing substance abuse or addiction, that— 

21 ‘‘(i) constitutes or results in a sub22 stantial impediment to employment; or 

23 ‘‘(ii) substantially limits 1 or more 

24 major life activities. 


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1 ‘‘(B) MODIFIED WORK ACTIVITIES.—The 

2 term ‘modified work activities’ means activities 

3 which the State has determined will help the re4 cipient become employable.’’. 

5 (d) SANCTIONS.— 

6 (1) GENERAL SANCTION PROVISIONS.— 

7 (A) PROHIBITION ON IMPOSING LIFETIME

8 OR FULL FAMILY SANCTION.— 

9 (i) PROHIBITION.—Section 408(a) (42 

10 U.S.C. 608(a)) is amended by adding at 

11 the end the following: 

12 ‘‘(13) PROHIBITION ON IMPOSING LIFETIME OR

13 FULL FAMILY SANCTION.—A State to which a grant 

14 is made under section 403 shall not impose a life15 time prohibition on the provision of assistance to 

16 any individual or family under the State program 

17 funded under this part or under a program funded 

18 with qualified State expenditures (as defined in sec19 tion 409(a)(7)(B)(i)) on the basis of the failure of 

20 a member of the family to comply with a program 

21 requirement.’’. 

22 (ii) PENALTY.—Section 409(a) (42 

23 U.S.C. 609), as amended by section 

24 903(c)(2)(A) of this title and subsection 


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1 (b)(3) of this section, is amended by add2 ing at the end the following: 

3 ‘‘(17) PENALTY FOR IMPOSING LIFETIME OR

4 FULL FAMILY SANCTION.—If the Secretary deter5 mines that a State to which a grant is made under 

6 section 403 in a fiscal year has violated section 

7 408(a)(13) during the fiscal year, the Secretary 

8 shall reduce the grant payable to the State under 

9 section 403(a)(1) for the immediately succeeding fis10 cal year by an amount equal to 5 percent of the 

11 State family assistance grant.’’. 

12 (B) DUE PROCESS PROTECTIONS.— 

13 (i) IN GENERAL.—Section 408(a) (42 

14 U.S.C. 608(a)), as amended by subpara15 graph (A)(i) of this paragraph, is amended 

16 by adding at the end the following: 

17 ‘‘(14) SANCTION PROCEDURES.— 

18 ‘‘(A) PRE-SANCTION REVIEW PROCESS.— 

19 Before imposing a sanction against an indi20 vidual or family receiving assistance under the 

21 State program funded under this part or under 

22 a program funded with qualified State expendi23 tures (as defined in section 409(a)(7)(B)(i)) for 

24 failure to comply with program requirements, 

25 the State shall take the following steps: 


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1 ‘‘(i) Provide or send notice to the indi2 vidual or family, and, if the recipient’s na3 tive language is not English, through a 

4 culturally competent written or verbal 

5 translation, of the following information: 

6 ‘‘(I) The specific reason for the 

7 proposed sanction. 

8 ‘‘(II) The amount of the pro9 posed sanction. 

10 ‘‘(III) The length of time during 

11 which the proposed sanction would be 

12 in effect. 

13 ‘‘(IV) The steps required to come 

14 into compliance or to show good cause 

15 for noncompliance. 

16 ‘‘(V) That the agency will provide 

17 assistance to help the individual dem18 onstrate good cause for noncompli19 ance, or come into compliance with 

20 program requirements. 

21 ‘‘(VI) That the individual may 

22 appeal the determination to impose a 

23 sanction, and the steps that the indi24 vidual must take to pursue such an 

25 appeal. 


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1 ‘‘(ii)(I) Ensure that, subject to clause 

2 (iii)— 

3 ‘‘(aa) an individual, other than 

4 the individual who determined that a 

5 sanction be imposed, will review the 

6 determination and have the authority 

7 to take the actions described in sub8 clause (II); and 

9 ‘‘(bb) the individual or family 

10 against whom the sanction is to be 

11 imposed shall be afforded the oppor12 tunity to meet with the individual who 

13 is reviewing the determination to im14 pose the sanction. 

15 ‘‘(II) The action described in this sub16 clause are the following: 

17 ‘‘(aa) Modify the determination 

18 to impose a sanction. 

19 ‘‘(bb) Determine that there was 

20 good cause for the failure to comply. 

21 ‘‘(cc) Recommend modifications 

22 to the individual responsibility or em23 ployment plan of an individual. 


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1 ‘‘(dd) Make such other deter2 minations and take such other actions 

3 as may be appropriate. 

4 ‘‘(iii) The review required under 

5 clause (ii) shall include consideration of the 

6 following: 

7 ‘‘(I) To the extent applicable, 

8 whether barriers to compliance exist, 

9 such as a physical or mental impair10 ment (including mental illness, sub11 stance abuse, mental retardation, or a 

12 learning disability), domestic or sexual 

13 violence, limited proficiency in 

14 English, limited literacy, homeless15 ness, or the need to care for a child 

16 with a disability or health condition, 

17 that contributed to the noncompli18 ance. 

19 ‘‘(II) Whether the noncompliance 

20 resulted from failure to receive or 

21 have access to services identified as 

22 necessary in an individual responsi23 bility or employment plan. 

24 ‘‘(III) Whether changes to the in25 dividual responsibility or employment 


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1 plan of an individual should be made 

2 in order for the individual to come 

3 into compliance. 

4 ‘‘(IV) Whether there is good 

5 cause for any noncompliance. 

6 ‘‘(V) Whether the sanction poli7 cies of the State have been applied 

8 properly. 

9 ‘‘(B) SANCTION FOLLOW-UP REQUIRE10 MENTS.—If a State imposes a sanction on a 

11 family or individual for failing to comply with 

12 program requirements, the State shall— 

13 ‘‘(i) provide or send notice to the indi14 vidual or family, in language calculated to 

15 be understood by the individual or family, 

16 and, if the individual’s or family’s native 

17 language is not English, through a cul18 turally competent translation, of the reason 

19 for the sanction and the steps the indi20 vidual or family must take to end the sanc21 tion; 

22 ‘‘(ii) resume full assistance, services, 

23 or benefits to the individual or family 

24 under the program (if the individual or 

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1 ance, services, or benefits) once the indi2 vidual who was not in compliance with pro3 gram requirements that led to the sanction 

4 complies with the requirements for a rea5 sonable period of time, as determined by 

6 the State and subject to State discretion to 

7 reduce the period; and 

8 ‘‘(iii) if the State has not resumed 

9 providing the assistance, services, or bene10 fits as of the end of the 120-day period 

11 that begins on the date that is 60 days 

12 after the date on which the sanction was 

13 imposed, provide notice to the individual or 

14 family, in language calculated to be under15 stood by the individual or family, of the 

16 steps the individual or family must take to 

17 end the sanction, and of the availability of 

18 assistance to come into compliance or dem19 onstrate good cause for noncompliance. 

20 ‘‘(C) NOTICE TO EVICTED PERSONS.—The 

21 State shall make a reasonable effort to provide 

22 to an individual or family that has been evicted 

23 from a residence for failure to pay rent or as 

24 a result of another problem related to poverty, 


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1 any notice required by this paragraph to be 

2 provided to the individual or family.’’. 

3 (ii) PENALTY.—Section 409(a) (42 

4 U.S.C. 609(a)), as amended by section 

5 903(c)(2)(A) of this title, subsection (b)(3) 

6 of this section, and subparagraph (A)(ii) of 

7 this paragraph, is amended by adding at 

8 the end the following: 

9 ‘‘(18) PENALTY FOR FAILURE TO FOLLOW

10 SANCTION PROCEDURES.— 

11 ‘‘(A) IN GENERAL.—If the Secretary deter12 mines that a State to which a grant is made 

13 under section 403 in a fiscal year has violated 

14 section 408(a)(14) during the fiscal year, the 

15 Secretary shall reduce the grant payable to the 

16 State under section 403(a)(1) for the imme17 diately succeeding fiscal year by an amount 

18 equal to not more than 5 percent of the State 

19 family assistance grant. 

20 ‘‘(B) PENALTY BASED ON SEVERITY OF

21 FAILURE.—The Secretary shall impose reduc22 tions under subparagraph (A) with respect to a 

23 fiscal year based on the degree of noncompli24 ance.’’. 


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1 (iii) STATE PLAN REQUIREMENT TO

2 DESCRIBE HOW STATES WILL NOTIFY AP3 PLICANTS AND RECIPIENTS OF THEIR

4 RIGHTS UNDER THE PROGRAM AND OF PO5 TENTIAL BENEFITS AND SERVICES AVAIL6 ABLE UNDER THE PROGRAM.—Section 

7 402(a)(1)(B)(iii) (42 U.S.C. 

8 602(a)(1)(B)(iii)) is amended by inserting 

9 ‘‘, and will notify applicants and recipients 

10 of assistance under the program of the 

11 rights of individuals under all laws applica12 ble to program activities and of all poten13 tial benefits and services available under 

14 the program’’ before the period. 

15 (2) MODIFICATIONS TO WORK SANCTION.— 

16 (A) ELIMINATION OF FULL FAMILY SANC17 TION; STATE REQUIRED TO ESTABLISH CER18 TAIN GOOD CAUSE EXCEPTIONS.—Section 

19 407(e)(1) (42 U.S.C. 607(e)(1)) is amended— 

20 (i) by striking ‘‘shall—’’ and all that 

21 follows through subparagraph (B) and in22 serting ‘‘shall reduce the amount of assist23 ance otherwise payable to the family pro 

24 rata with respect to any period during a 


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1 month in which the individual so refuses,’’; 

2 and 

3 (ii) by striking ‘‘may establish’’ and 

4 inserting the following ‘‘shall establish, 

5 which shall include the decline of an offer 

6 of employment at a wage less than the 

7 greater of the applicable Federal or State 

8 minimum wage, or 80 percent of the wage 

9 that would have governed had the min10 imum hourly rate under the Fair Labor 

11 Standards Act been applicable to the offer 

12 of employment, at a site subject to a strike 

13 or lockout at the time of refusal, or for 

14 medical reasons or a lack of sufficient 

15 physical strength or stamina’’. 

16 (B) PROHIBITION ON SANCTIONING INDI17 VIDUAL FOR FAILURE TO ENGAGE IN WORK IF

18 INDIVIDUAL HAS A CHILD UNDER AGE 6

19 MONTHS OR IF FAILURE RESULTS FROM IN20 ABILITY TO SECURE CHILD CARE OR AFTER21 SCHOOL ARRANGEMENTS FOR A CHILD UNDER

22 AGE 13.—Section 407(e)(2) (42 U.S.C. 

23 607(e)(2)) is amended by striking ‘‘refusal’’ 

24 and all that follows and inserting ‘‘failure of an 


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1 individual to engage in work required in accord2 ance with this section if— 

3 ‘‘(A) the individual is a single custodial 

4 parent caring for a child who has not attained 

5 6 months of age; or 

6 ‘‘(B) the individual is the single custodial 

7 parent caring for a child who has not attained 

8 13 years of age, and the failure resulted from 

9 the inability of the individual to secure child 

10 care or after-school arrangements for the 

11 child’’. 

12 (3) MODIFICATIONS TO CHILD SUPPORT SANC13 TION.—Section 408(a)(2) (42 U.S.C. 608(a)(2)) is 

14 amended by striking ‘‘State—’’ and all that follows 

15 and inserting ‘‘State shall deduct from the assist16 ance that would otherwise be provided to the family 

17 of the individual under the State program funded 

18 under this part an amount equal to 25 percent of 

19 the amount of the assistance.’’. 

20 (e) RELATED STATE PLAN REQUIREMENT.—Section 

21 402(a) (42 U.S.C. 602(a)) is amended by adding at the 

22 end the following: 

23 ‘‘(8) CERTIFICATION THAT EMPLOYMENT AS24 SESSMENTS AND SANCTION REVIEWS WILL BE CON25 DUCTED BY COMPETENT PERSONNEL.—A certifiVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 cation by the chief executive officer of the State that 

2 the employment assessments conducted pursuant to 

3 section 408(b)(1) and the sanction reviews con4 ducted pursuant to section 408(a)(14)(A) will be 

5 conducted by personnel who have sufficient edu6 cation, training, and professional competence to do 

7 so, which shall include information on the education, 

8 training, and professional competence that State will 

9 require of the personnel.’’. 

10 SEC. 906. PROHIBITION ON IMPOSING LIMIT OF LESS THAN 

11 60 MONTHS ON DURATION OF ASSISTANCE. 

12 (a) PROHIBITION.— 

13 (1) IN GENERAL.—Section 408(a)(7) (42 

14 U.S.C. 608(a)(7)) is amended— 

15 (A) in the paragraph heading, by striking 

16 ‘‘NO ASSISTANCE FOR MORE THAN 5 YEARS’’ 

17 and inserting ‘‘DURATIONAL LIMITS ON ASSIST18 ANCE’’; 

19 (B) in the heading for subparagraph (A), 

20 by striking ‘‘IN GENERAL’’ and inserting ‘‘NO

21 ASSISTANCE FOR MORE THAN 5 YEARS’’; and 

22 (C) by adding at the end the following: 

23 ‘‘(H) PROHIBITION ON LIMITING DURA24 TION OF ASSISTANCE TO LESS THAN 60

25 MONTHS.—A State to which a grant is made 


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1 under section 403 shall not impose a limit of 

2 less than 60 months on the duration for which 

3 a family may be provided assistance from Fed4 eral or State funds under the State program 

5 funded under this part or under a program 

6 funded with qualified State expenditures (as de7 fined in section 409(a)(7)(B)(i)).’’. 

8 (2) CONFORMING AMENDMENT.—The heading 

9 of section 409(a)(9) (42 U.S.C. 609(a)(9)) is 

10 amended by striking ‘‘5-YEAR LIMIT’’ and inserting 

11 ‘‘RULES GOVERNING DURATIONAL LIMITS’’. 

12 (b) REQUIREMENT TO CONDUCT OUTREACH TO IN13 FORM POTENTIALLY ELIGIBLE FAMILIES OF ELIMI14 NATION OF DURATIONAL LIMIT ON ASSISTANCE OF LESS

15 THAN 60 MONTHS.— 

16 (1) IN GENERAL.—Section 408(a) (42 U.S.C. 

17 608(a)), as amended by section 905(d)(1) of this 

18 title, is amended by adding at the end the following: 

19 ‘‘(15) REQUIREMENT TO CONDUCT OUTREACH

20 TO INFORM POTENTIALLY ELIGIBLE RECIPIENTS OF

21 ASSISTANCE OF ELIMINATION OF DURATIONAL LIMIT

22 ON ASSISTANCE OF LESS THAN 60 MONTHS.—A 

23 State to which a grant is made under section 403 

24 for a fiscal year that, before the effective date of this 

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1 gram funded under this part or any other State pro2 gram funded by qualified State expenditures (as de3 fined in section 409(a)(7)(B)(i)) to an individual or 

4 family on the basis of a durational limit on the as5 sistance that was imposed other than under section 

6 408(a)(7) shall conduct outreach to inform individ7 uals and families who were so denied that they may 

8 be eligible for additional months of the assistance.’’. 

9 (2) PENALTY.—Section 409(a) (42 U.S.C. 

10 609(a)), as amended by sections 903(c)(2)(A) and 

11 905(d)(1) of this title, is amended by adding at the 

12 end the following: 

13 ‘‘(19) FAILURE TO CONDUCT OUTREACH TO IN14 FORM POTENTIALLY ELIGIBLE RECIPIENTS OF AS15 SISTANCE OF ELIMINATION OF DURATIONAL LIMIT

16 ON ASSISTANCE OF LESS THAN 60 MONTHS.—If the 

17 Secretary determines that a State to which a grant 

18 is made under section 403 in a fiscal year has vio19 lated section 408(a)(15) during the fiscal year, the 

20 Secretary shall reduce the grant payable to the State 

21 under section 403(a)(1) for the immediately suc22 ceeding fiscal year by an amount equal to 5 percent 

23 of the State family assistance grant.’’. 

24 (c) STATE PLAN REQUIRED TO INCLUDE DESCRIP25 TION OF HOW POTENTIALLY ELIGIBLE RECIPIENTS WILL


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1 BE INFORMED OF ELIMINATION OF DURATIONAL LIMIT

2 ON ASSISTANCE OF LESS THAN 60 MONTHS.—Section 

3 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended by 

4 adding at the end the following: 

5 ‘‘(vi) In the case of a State that, be6 fore the date this clause takes effect, de7 nied assistance under the program to an 

8 individual or family on the basis of a 

9 durational limit on the assistance that was 

10 imposed other than under section 

11 408(a)(7), the document shall describe how 

12 the State intends to inform the individuals 

13 and families who were so denied that they 

14 may be eligible for additional months of 

15 the assistance.’’. 

16 SEC. 907. RESPONSE OF TANF PROGRAM TO ECONOMIC RE17 CESSIONS. 

18 (a) INAPPLICABILITY OF DURATIONAL LIMIT ON AS19 SISTANCE.—Section 408(a)(7) (42 U.S.C. 608(a)(7)), as 

20 amended by section 906(a)(1)(C) of this title, is amended 

21 by adding at the end the following: 

22 ‘‘(I) INAPPLICABILITY OF DURATIONAL

23 LIMIT DURING RECESSION.—Subparagraph (A) 

24 shall not apply in a State during any month 


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1 which is in a high unemployment period with 

2 respect to the State. 

3 ‘‘(J) DISREGARD OF ASSISTANCE PRO4 VIDED DURING RECESSION.—In determining 

5 the number of months for which an adult has 

6 received assistance under a State or tribal pro7 gram funded under this part or any other State 

8 program funded by qualified State expenditures 

9 (as defined in section 409(a)(7)(B)(i)), the 

10 State or tribe shall disregard any month which 

11 is in a high unemployment period with respect 

12 to the State. 

13 ‘‘(K) 6-MONTH GRACE PERIOD REQUIRED

14 AFTER RECESSION.—Subparagraph (A) shall 

15 not apply to a recipient of assistance under the 

16 State program funded under this part or any 

17 other State program funded by qualified State 

18 expenditures (as defined in section 

19 409(a)(7)(B)(i)) during the 6-month period 

20 that begins with the month immediately fol21 lowing a high unemployment period with re22 spect to the State if the recipient received the 

23 assistance for the last month of the period.’’. 


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1 (b) REQUIREMENT TO CONDUCT OUTREACH TO IN2 FORM POTENTIALLY ELIGIBLE FAMILIES OF SUSPENSION

3 OF DURATIONAL LIMIT ON ASSISTANCE.— 

4 (1) IN GENERAL.—Section 408(a) (42 U.S.C. 

5 608(a)), as amended by sections 905(d)(1) and 

6 906(b)(1) of this title, is amended by adding at the 

7 end the following: 

8 ‘‘(16) REQUIREMENT TO CONDUCT OUTREACH

9 TO INFORM POTENTIALLY ELIGIBLE RECIPIENTS OF

10 ASSISTANCE OF SUSPENSION OF DURATIONAL LIMIT

11 ON ASSISTANCE.—In each month which is a high un12 employment period with respect to a State to which 

13 a grant is made under section 403 for a fiscal year, 

14 the State shall conduct outreach to inform individ15 uals and families who are potentially eligible for as16 sistance under the State program funded under this 

17 part or any other State program funded by qualified 

18 State expenditures (as defined in section 

19 409(a)(7)(B)(i)) of the suspension of any durational 

20 limit on assistance under the program.’’. 

21 (2) PENALTY.—Section 409(a) (42 U.S.C. 

22 609(a)), as amended by sections 903(c)(2)(A), 

23 905(d)(1), and 906(b)(2), is amended by adding at 

24 the end the following: 


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1 ‘‘(20) FAILURE TO CONDUCT OUTREACH TO IN2 FORM POTENTIALLY ELIGIBLE RECIPIENTS OF AS3 SISTANCE OF SUSPENSION OF DURATIONAL LIMIT

4 ON ASSISTANCE.—If the Secretary determines that a 

5 State to which a grant is made under section 403 

6 in a fiscal year has violated section 408(a)(16) dur7 ing the fiscal year, the Secretary shall reduce the 

8 grant payable to the State under section 403(a)(1) 

9 for the immediately succeeding fiscal year by an 

10 amount equal to 5 percent of the State family assist11 ance grant.’’. 

12 (c) STATE PLAN REQUIRED TO INCLUDE DESCRIP13 TION OF HOW POTENTIALLY ELIGIBLE RECIPIENTS WILL

14 BE INFORMED OF SUSPENSION OF TIME LIMITS DURING

15 RECESSION.—Section 402(a)(1)(B) (42 U.S.C. 

16 602(a)(1)(B)), as amended by section 906(c) of this title, 

17 is amended by adding at the end the following: 

18 ‘‘(vii) The document shall describe 

19 how the State intends to inform potentially 

20 eligible recipients of assistance under the 

21 program of the suspension of durational 

22 limits on the assistance during a high un23 employment period with respect to the 

24 State.’’. 


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1 (d) HIGH UNEMPLOYMENT PERIOD DEFINED.—Sec2 tion 419 (42 U.S.C. 619) is amended by adding at the 

3 end the following: 

4 ‘‘(6) HIGH UNEMPLOYMENT PERIOD DE5 FINED.—The term ‘high unemployment period’ 

6 means, with respect to a State, a period of 1 or 

7 more consecutive months if the average rate of total 

8 unemployment in the State (seasonally adjusted) for 

9 the period consisting of the then most recent 3 

10 months for which data for all States are published 

11 equals or exceeds 6.5 percent.’’. 

12 SEC. 908. REQUIREMENT THAT STATES USE MERIT-BASED 

13 SYSTEM IN ADMINISTRATION OF TANF PRO14 GRAMS. 

15 (a) PROGRAM REQUIREMENT.—Section 408(a) (42 

16 U.S.C. 608(a)), as amended by sections 905(d)(1), 

17 906(b)(1), and 907(b)(1) of this title, is amended by add18 ing at the end the following: 

19 ‘‘(17) REQUIREMENT TO USE MERIT-BASED

20 SYSTEM IN ADMINISTERING PROGRAM.—A State to 

21 which a grant is made under section 403 shall estab22 lish and maintain personnel standards through a 

23 merit-based system, in administering the State pro24 gram funded under this part and any other State 


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1 program funded by qualified State expenditures (as 

2 defined in section 409(a)(7)(B)(i)).’’. 

3 (b) PENALTY.—Section 409(a) (42 U.S.C. 609), as 

4 amended by sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 

5 and 907(b)(2) of this title, is amended by adding at the 

6 end the following: 

7 ‘‘(21) PENALTY FOR FAILURE TO USE MERIT8 BASED SYSTEM IN ADMINISTERING PROGRAM.—If 

9 the Secretary determines that a State to which a 

10 grant is made under section 403 in a fiscal year has 

11 violated section 408(a)(17) during the fiscal year, 

12 the Secretary shall reduce the grant payable to the 

13 State under section 403(a)(1) for the immediately 

14 succeeding fiscal year by an amount equal to 5 per15 cent of the State family assistance grant.’’. 

16 SEC. 909. BAN ON USING FEDERAL TANF FUNDS TO RE17 PLACE STATE AND LOCAL SPENDING THAT 

18 DOES NOT MEET THE DEFINITION OF QUALI19 FIED STATE EXPENDITURES. 

20 (a) PROHIBITION.—Section 408(a) (42 U.S.C. 

21 608(a)), as amended by sections 905(d)(1), 906(b)(1), 

22 907(b)(1), and 908(a) of this title, is amended by adding 

23 at the end the following: 

24 ‘‘(18) BAN ON USING FEDERAL TANF FUNDS

25 TO REPLACE STATE OR LOCAL SPENDING THAT IS


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1 NOT A QUALIFIED STATE EXPENDITURE.—A State 

2 to which a grant is made under section 403, and a 

3 sub-State entity that receives funds from such a 

4 grant, shall not expend any part of the grant funds 

5 to supplant State or local spending for benefits or 

6 services which are not qualified State expenditures 

7 (within the meaning of section 409(a)(7)(B)(i)).’’. 

8 (b) PENALTY.—Section 409(a) (42 U.S.C. 609), as 

9 amended by sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 

10 907(b)(2), and 908(b) of this title, is amended by adding 

11 at the end the following: 

12 ‘‘(22) USE OF FEDERAL TANF FUNDS TO RE13 PLACE STATE OR LOCAL SPENDING THAT IS NOT A

14 QUALIFIED STATE EXPENDITURE.—If the Secretary 

15 determines that a State to which a grant is made 

16 under section 403 in a fiscal year has violated sec17 tion 408(a)(18) during the fiscal year, the Secretary 

18 shall reduce the grant payable to the State under 

19 section 403(a)(1) for the immediately succeeding fis20 cal year by an amount equal to 5 percent of the 

21 State family assistance grant.’’. 

22 SEC. 910. TANF ASSISTANCE TO MEET BASIC FAMILY ECO23 NOMIC NEEDS. 

24 (a) STATE PLAN REQUIREMENT.—Section 

25 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as amended by 


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1 sections 906(c) and 907(d) of this title, is amended by 

2 adding at the end the following: 

3 ‘‘(viii) FAMILY BUDGET PROVI4 SIONS.—The document shall set forth a 

5 family budget of a dollar amount sufficient 

6 to meet the basic economic needs (includ7 ing food, clothing, shelter, utilities, house8 hold goods, personal care items, and gen9 eral incidental expenses) of a family, how 

10 the family budget is adjusted for family 

11 size, the method used to estimate the fam12 ily budget (including a statement of the re13 lationship between shelter and utility costs 

14 and the fair market rents in localities in 

15 the State), and the relationship between 

16 the amount of assistance provided to each 

17 family under the program and the amount 

18 of the family budget for the family.’’. 

19 (b) PROGRAM REQUIREMENT.—Section 408(a) (42 

20 U.S.C. 608(a)), as amended by sections 905(d)(1), 

21 906(b)(1), 907(b)(1), 908(a), and 909(a) of this title, is 

22 amended by adding at the end the following: 

23 ‘‘(19) REQUIREMENT THAT AMOUNT OF ASSIST24 ANCE MEET BASIC ECONOMIC NEEDS.—A State to 

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1 sure that the total amount of assistance provided to 

2 a family under the State program funded under this 

3 part and all programs funded with qualified State 

4 expenditures (as defined in section 409(a)(7)(B)(i)) 

5 for which the family is eligible is sufficient to meet 

6 the basic economic needs of the family, taking into 

7 account all earned and unearned income of the fam8 ily and an amount not to exceed the value of the 

9 supplemental nutrition assistance benefits provided 

10 to the family under the Food and Nutrition Act of 

11 2008.’’. 

12 (c) PENALTY.—Section 409(a) (42 U.S.C. 609), as 

13 amended by sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 

14 907(b)(2), 908(b), and 909(b) of this title, is amended by 

15 adding at the end the following: 

16 ‘‘(23) PENALTY FOR FAILURE OF STATE TANF

17 ASSISTANCE TO MEET BASIC ECONOMIC NEEDS OF A

18 RECIPIENT FAMILY.—If the Secretary determines 

19 that a State to which a grant is made under section 

20 403 in a fiscal year has violated section 408(a)(19) 

21 during the fiscal year, the Secretary shall reduce the 

22 grant payable to the State under section 403(a)(1) 

23 for the immediately succeeding fiscal year by an 

24 amount equal to 5 percent of the State family assist25 ance grant.’’. 


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1 SEC. 911. STATE PLANS AND REPORTS ON CHILD POVERTY. 

2 (a) CHILD POVERTY REDUCTION AS A PURPOSE OF

3 THE TANF PROGRAM.—Section 401(a)(1) (42 U.S.C. 

4 601(a)(1)) is amended by redesignating paragraphs (1) 

5 through (4) as paragraphs (2) through (5), respectively, 

6 and by inserting before paragraph (2) (as so redesignated) 

7 the following: 

8 ‘‘(1) reduce poverty among children;’’. 

9 (b) STATE PLAN PROVISIONS.— 

10 (1) MATTERS REQUIRED TO BE ADDRESSED.— 

11 Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is 

12 amended by adding at the end the following: 

13 ‘‘(ix) GOALS AND METHODS FOR RE14 DUCING CHILD POVERTY.—Reduce child 

15 poverty using Federal funds provided 

16 under this part and State funds, including 

17 establishing numerical goals for reducing 

18 child poverty. 

19 ‘‘(x) GOALS AND TRACKING OF WORK

20 OUTCOMES.—Track work-related outcomes 

21 for recipients of assistance under the pro22 gram, such as employment entries, wages, 

23 and job retention, including establishing 

24 numerical goals for work-related outcomes 

25 for recipients. 


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1 ‘‘(xi) PROVIDE PREVENTATIVE SERV2 ICES TO FAMILIES AT-RISK OF ABUSE OR

3 NEGLECT.—Provide benefits and services 

4 to families at-risk of having their children 

5 removed from the home because of abuse 

6 and neglect, using Federal funds provided 

7 under this part and State funds. 

8 ‘‘(xii) HOW NONCUSTODIAL PARENTS

9 WILL BE SERVED.—Serve noncustodial 

10 parents, using Federal funds provided 

11 under this part and State funds.’’. 

12 (2) PUBLIC AVAILABILITY.—Section 402(c) (42 

13 U.S.C. 602(c)) is amended to read as follows: 

14 ‘‘(c) PUBLIC AVAILABILITY.— 

15 ‘‘(1) IN GENERAL.—The State shall make avail16 able to the public, including by posting on a public 

17 website of the State or another appropriate 

18 website— 

19 ‘‘(A) each draft of any plan or plan 

20 amendment to be submitted by the State under 

21 this section, for at least 45 days before the sub22 mission; and 

23 ‘‘(B) any such plan or amendment certified 

24 by the Secretary to be complete. 


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1 ‘‘(2) PROCEDURES.—The State shall establish 

2 procedures to receive and respond to comments from 

3 the public, private sector organizations, and local 

4 governments on any draft referred to in paragraph 

5 (1).’’. 

6 (c) ANNUAL PERFORMANCE REPORT.—Section 411 

7 (42 U.S.C. 611) is amended by adding at the end the fol8 lowing: 

9 ‘‘(e) ANNUAL PERFORMANCE REPORT BY STATES.— 

10 Not later than December 31 of each year, each eligible 

11 State shall submit to the Secretary (in accordance with 

12 such form and content rules as the Secretary, in consulta13 tion with the National Governor’s Association, National 

14 Association of State Legislatures, and the American Pub15 lic Human Services Association, develops) a report on the 

16 following aspects of the State program funded under this 

17 part in the preceding fiscal year: 

18 ‘‘(1) Whether the State met the child poverty 

19 reduction goals set forth in the State plan. This part 

20 of the report shall include a discussion of the fac21 tors, including benefits, services, and activities fund22 ed with Federal funds provided under this part or 

23 State funds, which contributed to the meeting of, or 

24 the failure to meet, the goals. 


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1 ‘‘(2) Whether the work programs of the State 

2 were effective in meeting the objectives and numer3 ical goals of the State plan. This part of the report 

4 shall include a discussion of data derived from the 

5 tracking of recipients, including— 

6 ‘‘(A) the number of families that left the 

7 State program funded under this part; 

8 ‘‘(B) the employment rate for those who 

9 left the program in each calendar quarter; 

10 ‘‘(C) the wage rates of those who left the 

11 program, including the percentage of leavers 

12 who, in each calendar quarter, earned an 

13 amount equal to at least 50 percent of the aver14 age wage then paid in the State; and 

15 ‘‘(D) the employment outcomes of those 

16 who left the program because of a durational 

17 limit on assistance, reported at 6 months, 12 

18 months, 24 months, and 36 months after leav19 ing the program. 

20 The Secretary shall provide States with technical as21 sistance in preparing this part of the report, includ22 ing by providing States with data from the National 

23 Directory of New Hires. 

24 ‘‘(3) Whether the State has been effective in 

25 providing benefits and services under the program to 


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1 persons with disabilities. This part of the report 

2 shall include a report on recipients of assistance 

3 under the State program funded under this part who 

4 participated in work activities (as defined in section 

5 407(d)) pursuant to a modified employability plan 

6 due to disability, including the following: 

7 ‘‘(A) The aggregate number of recipients 

8 with modified employability plans due to a dis9 ability. 

10 ‘‘(B) The percentage of all recipients with 

11 modified employability plans who substantially 

12 complied with activities set forth in the plans 

13 each month of the fiscal year. 

14 ‘‘(C) Information regarding the most prev15 alent types of physical and mental impairments 

16 that provided the basis for the disability deter17 minations. 

18 ‘‘(D) The percentage of cases with a modi19 fied employability plan in which the recipient 

20 had a disability, was caring for a child with a 

21 disability, or was caring for another family 

22 member with a disability. 

23 ‘‘(E) A description of the most prevalent 

24 types of modification in work activities or hours 


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1 of participation that were included in the modi2 fied employability plans. 

3 ‘‘(F) A description of the qualifications of 

4 the staff who determined whether individuals 

5 had a disability, of the staff who determined 

6 that individuals needed modifications to their 

7 work requirements, and of the staff who devel8 oped the modified employability plans. 

9 ‘‘(4) The effectiveness of the benefits and serv10 ices provided under the State program in reducing 

11 the number of children removed from their homes 

12 because of abuse and neglect. This part of the report 

13 shall include an analysis which includes the fol14 lowing: 

15 ‘‘(A) The number of families provided the 

16 benefits or services that were at risk of having 

17 their children removed from the home. 

18 ‘‘(B) The number of families served by the 

19 program that had 1 or more children removed 

20 from the home because of abuse or neglect. 

21 ‘‘(5) An analysis of the extent to which the ben22 efits and services under the State program were pro23 vided to noncustodial parents. 

24 ‘‘(6) How funds provided to the State under 

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1 vided under section 403(a)(3) and funds provided 

2 under section 403(b), were used to serve areas of the 

3 State with the greatest need (as referred to in sec4 tion 402(a)(1)(A)(i)). This part of the report shall 

5 include supporting data.’’. 

6 (d) ANNUAL REPORT TO CONGRESS ON THE EF7 FORTS OF STATE PROGRAMS TO PROMOTE AND SUPPORT

8 EMPLOYMENT FOR INDIVIDUALS WITH DISABILITIES.— 

9 Section 411 (42 U.S.C. 611), as amended by subsection 

10 (c) of this section, is amended by adding at the end the 

11 following: 

12 ‘‘(f) REPORT BY SECRETARY.—Not later than July 

13 31 of each fiscal year, the Secretary shall submit to the 

14 Congress a report, entitled ‘Efforts in State TANF Pro15 grams to Promote and Support Employment for Individ16 uals with Disabilities’, that includes information on State 

17 efforts to engage individuals with disabilities in work ac18 tivities during the preceding fiscal year. The report shall 

19 include the following information: 

20 ‘‘(1) For each State, the number of individuals 

21 for whom the State has developed a modified em22 ployability plan. 

23 ‘‘(2) The types of physical and mental impair24 ments that provided the basis for the disability de25 termination, and whether the individual with the disVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00191 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 ability was an adult recipient or minor child head of 

2 household, a child, or a non-recipient family mem3 ber. 

4 ‘‘(3) The types of modifications that States 

5 have included in modified employability plans. 

6 ‘‘(4) The extent to which individuals with a 

7 modified employability plan are participating in work 

8 activities. 

9 ‘‘(5) For each State, an analysis of the extent 

10 to which the option to establish modified employ11 ability plans was a factor in the State achieving or 

12 not achieving the minimum participation rate re13 quired by section 407(a).’’. 

14 (e) REPORT TO CONGRESS ON LEGISLATIVE OPTIONS

15 TO REWARD STATES WITH HIGH EMPLOYMENT RATES

16 AND HIGH RATES OF EMPLOYMENT AT GOOD WAGES.— 

17 Within 4 years after the effective date of this section, the 

18 Secretary of Health and Human Services shall submit to 

19 the Congress a report that sets forth options for the enact20 ment of legislation to provide financial or other rewards 

21 to States that have high rates of employment and high 

22 rates of employment at good wages. 


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1 SEC. 912. REQUIREMENT THAT STATES ADOPT STANDARDS 

2 AND PROCEDURES TO ADDRESS DOMESTIC 

3 AND SEXUAL VIOLENCE AMONG TANF RE4 CIPIENTS. 

5 (a) IN GENERAL.—Section 402(a)(7) (42 U.S.C. 

6 602(a)(7)) is amended— 

7 (1) by striking the paragraph heading and in8 serting ‘‘CERTIFICATION OF STANDARDS AND PRO9 CEDURES REGARDING DOMESTIC AND SEXUAL VIO10 LENCE’’; 

11 (2) by striking subparagraph (A) and inserting 

12 the following: 

13 ‘‘(A) IN GENERAL.—A certification by the 

14 chief executive officer of the State that the 

15 State has established and is enforcing stand16 ards and procedures to ensure the right and en17 titlement of victims of domestic or sexual vio18 lence (notwithstanding section 401(b)) seeking 

19 or receiving assistance under the State program 

20 funded under this part or any other State pro21 gram funded by qualified State expenditures (as 

22 defined in section 409(a)(7)(B)(i))— 

23 ‘‘(i) to be screened and identified 

24 while maintaining the confidentiality of the 

25 victims; 


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1 ‘‘(ii) to be referred to counseling and 

2 supportive services; 

3 ‘‘(iii) to be granted a waiver, pursuant 

4 to a determination of good cause, of pro5 gram requirements such as time limits (for 

6 so long as necessary), residency require7 ments, child support cooperation require8 ments, and family cap provisions, in cases 

9 where compliance with the requirements 

10 would make it more difficult for the vic11 tims to escape domestic or sexual violence 

12 or unfairly penalize the victims or other in13 dividuals who are at risk of further domes14 tic or sexual violence; 

15 ‘‘(iv) to apply to participate in the 

16 program on the same day the victim ap17 pears in person in a program office during 

18 office hours; 

19 ‘‘(v) to have an application that con20 tains the name, address, and signature of 

21 the victim considered to be filed on the 

22 date the application is submitted; 

23 ‘‘(vi) to receive at the time of applica24 tion a clear, written statement explaining 

25 what the victim must do to cooperate in 


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1 obtaining verification and otherwise com2 pleting the application process; and 

3 ‘‘(vii) if the victim has completed the 

4 application process, to have the eligibility 

5 of the victim for assistance determined 

6 promptly, and to be provided assistance 

7 retroactive to the application date if deter8 mined eligible within 30 days after the ap9 plication date.’’; and 

10 (3) in subparagraph (B)— 

11 (A) in the subparagraph heading, by in12 serting ‘‘OR SEXUAL’’ after ‘‘DOMESTIC’’; and 

13 (B) in the text, by inserting ‘‘or sexual’’ 

14 after ‘‘domestic’’. 

15 (b) REPORT TO THE CONGRESS ON BEST PRACTICES

16 OF STATES.—Section 413 (42 U.S.C. 613) is amended by 

17 adding at the end the following: 

18 ‘‘(k) REPORT TO CONGRESS ON BEST PRACTICES OF

19 STATES IN ADDRESSING DOMESTIC AND SEXUAL VIO20 LENCE SUFFERED BY TANF RECIPIENTS.—Every 4 

21 years, the Secretary shall prepare and submit to the Con22 gress a report which examines the practices of States in 

23 implementing section 402(a)(7), and identifies the best 

24 practices used to do so.’’. 


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

2 this section shall take effect on October 1, 2014. 

3 SEC. 913. CHILD CARE ENTITLEMENT. 

4 (a) REPLACEMENT OF REQUIREMENT THAT POR5 TION OF FUNDS BE USED FOR CERTAIN POPULATIONS

6 WITH CHILD CARE GUARANTEE.—Section 418(b)(2) (42 

7 U.S.C. 618(b)(2)) is amended to read as follows: 

8 ‘‘(2) CHILD CARE TO BE GUARANTEED FOR

9 CERTAIN POPULATIONS.—As a condition of receiving 

10 funds under this section, a State shall guarantee the 

11 provision of child care services to— 

12 ‘‘(A) each recipient of assistance under the 

13 State program funded under this part or under 

14 a State program funded with qualified State ex15 penditures (as defined in section 

16 409(a)(7)(B)(i)) of this Act, and to each work17 eligible individual (as defined in section 

18 407(a)(2) of this Act), for any period in which 

19 the recipient or individual is— 

20 ‘‘(i) participating in a work activity 

21 (as defined in section 407(d) of this Act); 

22 ‘‘(ii) employed, and in a family the 

23 total income of which does not exceed 250 

24 percent of the poverty line (within the 

25 meaning of section 673(2) of the Omnibus 


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1 Budget Reconciliation Act of 1981, includ2 ing any revision required by such section 

3 applicable to a family of the size involved); 

4 or 

5 ‘‘(iii) engaged in employment sub6 sidized by the State; or 

7 ‘‘(B) each individual who is a former re8 cipient of assistance under such a program or 

9 a former work-eligible individual, for any por10 tion of the 24-month period, beginning with the 

11 date the individual left the program involved, in 

12 which the individual is employed and in a fam13 ily that meets the income requirement of sub14 paragraph (A)(ii).’’. 

15 (b) ELIMINATION OF STATE CAPS.—Section 418(a) 

16 (42 U.S.C. 618(a)) is amended— 

17 (1) in paragraph (2)— 

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

19 and redesignating subparagraph (C) as sub20 paragraph (B); and 

21 (B) in subparagraph (B) (as so redesig22 nated), by striking ‘‘the lesser of the State’s al23 lotment under subparagraph (B) or’’; and 

24 (2) in paragraph (5), by striking ‘‘(2)(C)’’ and 

25 inserting ‘‘(2)(B)’’. 


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1 (c) OPEN-ENDED ENTITLEMENT.—Section 418(a) 

2 (42 U.S.C. 618(a)) is amended— 

3 (1) in paragraph (1), by striking ‘‘Subject to 

4 the amount appropriated under paragraph (3), 

5 each’’ and inserting ‘‘Each’’; and 

6 (2) in paragraph (3), by striking ‘‘appro7 priated—’’ and all that follows and inserting ‘‘appro8 priated such sums as are necessary to carry out this 

9 section for each fiscal year.’’. 

10 (d) USE OF FUNDS IN ACCORDANCE WITH CHILD

11 CARE AND DEVELOPMENT BLOCK GRANT ACT OF 1990 

12 EXCEPT AS REQUIRED BY CHILD CARE GUARANTEE.— 

13 Section 418(c) (42 U.S.C. 618(c)) is amended by inserting 

14 ‘‘except to the extent that such a requirement or limitation 

15 would interfere with the provision of child care services 

16 required by subsection (b)(2)’’ before the period. 

17 SEC. 914. CHILD SUPPORT ENFORCEMENT. 

18 (a) ELIMINATION OF BAN ON PROVIDING ASSIST19 ANCE TO FAMILIES NOT ASSIGNING CERTAIN SUPPORT

20 RIGHTS TO THE STATE.— 

21 (1) IN GENERAL.—Section 408(a) (42 U.S.C. 

22 608(a)) is amended by striking paragraph (3). 

23 (2) CONFORMING AMENDMENTS.—The fol24 lowing provisions are each amended by inserting 

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1 fect before the effective date of the amendments 

2 made by section 10(a) of the Rewriting to Improve 

3 and Secure an Exit Out of Poverty Act took ef4 fect)’’: 

5 (A) Section 452(a)(10)(C) (42 U.S.C. 

6 652(a)(10)(C)). 

7 (B) Section 452(h) (42 U.S.C. 652(h)). 

8 (C) Section 454(5)(A) (42 U.S.C. 

9 654(5)(A)). 

10 (D) Section 456(a)(1) (42 U.S.C. 

11 656(a)(1)). 

12 (E) Section 457(a)(2)(B)(i) (42 U.S.C. 

13 657(a)(2)(B)(i)). 

14 (F) Section 457(a)(3)(A) (42 U.S.C. 

15 657(a)(3)(A)). 

16 (G) Section 457(a)(3)(B) (42 U.S.C. 

17 657(a)(3)(B)). 

18 (H) Section 464(a)(1) (42 U.S.C. 

19 664(a)(1)). 

20 (I) Section 466(a)(3)(B) (42 U.S.C. 

21 666(a)(3)(B)). 

22 (b) REQUIREMENT THAT ALL CHILD SUPPORT COL23 LECTED ON BEHALF OF A CHILD IN A FAMILY RECEIVING

24 TANF BE DISTRIBUTED TO THE FAMILY.— 


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1 (1) IN GENERAL.—Section 457 (42 U.S.C. 657) 

2 is amended— 

3 (A) in subsection (c)(1), by striking 

4 ‘‘means—’’ and all that follows through ‘‘(B) 

5 foster’’ and inserting ‘‘means foster’’; and 

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

7 ‘‘(f) Notwithstanding the preceding provisions of this 

8 section, all amounts collected by a State as child support 

9 on behalf of a child in a family that is receiving assistance 

10 under the State program funded under part A or under 

11 the State plan approved under part A of this title (as in 

12 effect on the day before the date of the enactment of the 

13 Personal Responsibility and Work Opportunity Reconcili14 ation Act of 1996) shall be distributed to the family.’’. 

15 (2) CONFORMING AMENDMENTS.—Section 

16 458(b)(5)(C)(i)(I) (42 U.S.C. 658(b)(5)(C)(i)(I)) is 

17 amended— 

18 (A) by inserting ‘‘is collected on behalf of 

19 a child described in section 457(f) or’’ after 

20 ‘‘involved’’; and 

21 (B) by striking ‘‘A or’’. 


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1 SEC. 915. STATE OPTION TO EXTEND ELIGIBILITY FOR AS2 SISTANCE TO CHILDREN THROUGH AGE 21; 

3 PROHIBITION ON CONSIDERING FINANCIAL 

4 AID TIED TO EDUCATION OF CHILD IN DE5 TERMINING ELIGIBILITY FOR, OR AMOUNT 

6 OF ASSISTANCE; PROHIBITION ON IMPOSING 

7 ADDITIONAL REQUIREMENTS BASED ON EDU8 CATIONAL ENROLLMENT OF CHILD. 

9 (a) STATE OPTION TO EXTEND TANF TO CHIL10 DREN UNDER AGE 22.—Section 419(2) (42 U.S.C. 

11 619(2)) is amended— 

12 (1) by striking ‘‘or’’ at the end of subparagraph 

13 (A); 

14 (2) by striking the period at the end of sub15 paragraph (B) and inserting ‘‘; or’’; and 

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

17 ‘‘(C) at the option of the State, has not at18 tained 22 years of age.’’. 

19 (b) BAN ON CONSIDERING FINANCIAL AID TIED TO

20 EDUCATION OF CHILD IN DETERMINING ELIGIBILITY

21 FOR, OR AMOUNT OF ASSISTANCE; BAN ON IMPOSING AD22 DITIONAL REQUIREMENTS BASED ON EDUCATIONAL EN23 ROLLMENT OF CHILD.— 

24 (1) PROHIBITIONS.—Section 408(a) (42 U.S.C. 

25 608(a)), as amended by sections 903(c)(2)(A), 

26 905(d)(1), 906(b)(1), 907(b)(1), 908(a), 909(a), and 


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1 910(b) of this title, is amended by adding at the end 

2 the following: 

3 ‘‘(20) BAN ON CONSIDERING FINANCIAL AID

4 TIED TO EDUCATION OF CHILD IN DETERMINING

5 ELIGIBILITY FOR, OR AMOUNT OF ASSISTANCE; BAN

6 ON IMPOSING ADDITIONAL REQUIREMENTS BASED

7 ON EDUCATIONAL ENROLLMENT OF CHILD.—A 

8 State to which a grant is made under section 403 

9 for a fiscal year shall not— 

10 ‘‘(A) consider financial aid tied to the 

11 training, school attendance, or postsecondary 

12 school attendance of a minor child in deter13 mining that the eligibility of the family of the 

14 child for, or the amount of assistance to be pro15 vided to the family, under the State program 

16 funded under this part or any other State pro17 gram funded by qualified State expenditures (as 

18 defined in section 409(a)(7)(B)(i)); or 

19 ‘‘(B) impose additional requirements on a 

20 family solely because the family includes a 

21 minor child who is enrolled in a training pro22 gram, school, or post-secondary educational in23 stitution.’’. 

24 (2) PENALTY.—Section 409(a) (42 U.S.C. 

25 609), as amended by sections 903(c)(2)(A), 


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1 905(d)(1), 906(b)(2), 907(b)(2), 908(b), 909(b), 

2 and 910(c) of this title, is amended by adding at the 

3 end the following: 

4 ‘‘(24) CONSIDERING EDUCATIONAL ENROLL5 MENT OF CHILD OR OF FINANCIAL AID TIED TO

6 EDUCATION OF CHILD.—If the Secretary determines 

7 that a State to which a grant is made under section 

8 403 in a fiscal year has violated section 408(a)(20) 

9 during the fiscal year, the Secretary shall reduce the 

10 grant payable to the State under section 403(a)(1) 

11 for the immediately succeeding fiscal year by an 

12 amount equal to 5 percent of the State family assist13 ance grant.’’. 

14 SEC. 916. ELIMINATION OF CERTAIN OTHER BARS TO TANF 

15 ASSISTANCE. 

16 (a) BAR ON ASSISTANCE FOR PERSONS CONVICTED

17 OF DRUG FELONIES.—Section 115 of the Personal Re18 sponsibility and Work Opportunity Reconciliation Act of 

19 1996 (21 U.S.C. 862a) is amended— 

20 (1) in the section heading by striking ‘‘ASSIST21 ANCE AND’’ and inserting ‘‘SUPPLEMENTAL NU22 TRITION ASSISTANCE’’; 

23 (2) in subsection (a), by striking ‘‘for—’’ and 

24 all that follows through ‘‘(2) benefits’’ and inserting 

25 ‘‘for benefits’’; 


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1 (3) in subsection (b), by striking all through 

2 ‘‘The amount of benefits’’ and inserting the fol3 lowing: 

4 ‘‘(b) EFFECTS ON BENEFITS FOR OTHERS.—The 

5 amount of benefits’’; 

6 (4) in subsection (c), by striking ‘‘assistance 

7 or’’; and 

8 (5) in subsection (e), by striking ‘‘it—’’ and all 

9 that follows through ‘‘in section 3(s)’’ and inserting 

10 ‘‘it in section 3(s)’’. 

11 (b) BAR ON ASSISTANCE FOR UNWED TEEN PAR12 ENTS NOT IN SCHOOL.—Section 408(a) (42 U.S.C. 

13 608(a)) is amended by striking paragraph (4). 

14 (c) BAR ON ASSISTANCE FOR TEENS NOT IN AN

15 ADULT-SUPERVISED LIVING ARRANGEMENT.—Section 

16 408(a) (42 U.S.C. 608(a)) is amended by striking para17 graph (5). 

18 (d) REDESIGNATION OF PROVISIONS.— 

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

20 608(a)), as amended by the preceding provisions of 

21 this title, is amended by redesignating paragraphs 

22 (6) through (20) as paragraphs (3) through (17), re23 spectively. 

24 (2) CONFORMING AMENDMENTS.— 


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1 (A) Section 402(a)(7)(B) (42 U.S.C. 

2 602(a)(7)(B)) is amended by striking 

3 ‘‘408(a)(7)(C)(iii)’’ and inserting 

4 ‘‘408(a)(4)(C)(iii)’’. 

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

6 603(a)(5)(C)(ii)(II)) is amended by striking 

7 ‘‘408(a)(7)(C)’’ and inserting ‘‘408(a)(4)(C)’’. 

8 (C) Section 403(a)(5)(C)(v) (42 U.S.C. 

9 603(a)(5)(C)(v)) is amended by striking 

10 ‘‘408(a)(7)’’ and inserting ‘‘408(a)(4)’’. 

11 (D) Section 409(a)(7)(B)(i)(IV) (42 

12 U.S.C. 609(a)(7)(B)(i)(IV)) is amended by 

13 striking ‘‘408(a)(7)’’ and inserting ‘‘408(a)(4)’’. 

14 (E) Section 409(a)(9) (42 U.S.C. 

15 609(a)(9)) is amended by striking ‘‘408(a)(7)’’ 

16 and inserting ‘‘408(a)(4)’’. 

17 (F) Section 409(a)(17), as added by sec18 tion 905(d)(1)(A)(ii) of this title, is amended by 

19 striking ‘‘408(a)(13)’’ and inserting 

20 ‘‘408(a)(10)’’. 

21 (G) Section 409(a)(18), as added by sec22 tion 905(d)(1)(A)(ii) of this title, is amended by 

23 striking ‘‘408(a)(14)’’ and inserting 

24 ‘‘408(a)(11)’’. 


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1 (H) Section 409(a)(19), as added by sec2 tion 906(b)(2) of this title, is amended by strik3 ing ‘‘408(a)(15)’’ and inserting ‘‘408(a)(12)’’. 

4 (I) Section 409(a)(20), as added by section 

5 907(b)(2) of this title, is amended by striking 

6 ‘‘408(a)(16)’’ and inserting ‘‘408(a)(13)’’. 

7 (J) Section 409(a)(21), as added by sec8 tion 908(b) of this title, is amended by striking 

9 ‘‘408(a)(17)’’ and inserting ‘‘408(a)(14)’’. 

10 (K) Section 409(a)(22), as added by sec11 tion 909(b) of this title, is amended by striking 

12 ‘‘408(a)(18)’’ and inserting ‘‘408(a)(15)’’. 

13 (L) Section 409(a)(23), as added by sec14 tion 910(c) of this title, is amended by striking 

15 ‘‘408(a)(19)’’ and inserting ‘‘408(a)(16)’’. 

16 (M) Section 409(a)(24), as added by sec17 tion 915(b)(2) of this title, is amended by strik18 ing ‘‘408(a)(20)’’ and inserting ‘‘408(a)(17)’’. 

19 (N) Section 411(a)(1)(A)(xvi) (42 U.S.C. 

20 611(a)(1)(A)(xvi)) is amended by striking 

21 ‘‘408(a)(7)’’ and inserting ‘‘408(a)(7)(A)’’. 

22 SEC. 917. EFFECTIVE DATE. 

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

24 this title, this title and the amendments made by this title 

25 shall take effect on October 1, 2014, and shall apply to 


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1 payments under title IV of the Social Security Act for cal2 endar quarters beginning on or after such date, without 

3 regard to whether regulations to implement the amend4 ments are promulgated by such date. 

5 (b) DELAY PERMITTED IF STATE LEGISLATION RE6 QUIRED.—If the Secretary of Health and Human Services 

7 determines that State legislation (other than legislation 

8 appropriating funds) is required in order for a State plan 

9 under part A or E of title IV of the Social Security Act 

10 to meet the additional requirements imposed by the 

11 amendments made by this title, the plan shall not be re12 garded as failing to meet any of the additional require13 ments before the 1st day of the 1st calendar quarter be14 ginning after the close of the first regular session of the 

15 State legislature that begins after the date of the enact16 ment of this Act. If the State has a 2-year legislative ses17 sion, each year of the session is deemed to be a separate 

18 regular session of the State legislature. 

19 TITLE X—EMPLOYMENT AD20 VANCEMENT, RETENTION, 

21 AND NAVIGATION ACT 

22 SEC. 1011. FOCUS ON EMPLOYMENT. 

23 (a) PURPOSE.—Section 401(a) of the Social Security 

24 Act (42 U.S.C. 601(a)) is amended— 


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

2 end; 

3 (2) in paragraph (4), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

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

6 ‘‘(5) promote employment advancement among 

7 needy families.’’. 

8 (b) STATE PLAN REQUIREMENT.—Section 

9 402(a)(1)(A) of such Act (42 U.S.C. 602(a)(1)(A)) is 

10 amended— 

11 (1) by redesignating clauses (vii) and (viii) as 

12 clauses (viii) and (ix), respectively; and 

13 (2) by inserting after clause (vi) the following: 

14 ‘‘(vii) Establish numeric goals for in15 creasing job entry, employment retention, 

16 and earnings gains for current and recent 

17 recipients of assistance under the program, 

18 and provide the Secretary with a narrative 

19 description of the activities and programs 

20 the state will implement to attain these 

21 goals.’’. 

22 SEC. 1012. MODIFICATION RELATING TO THE CONTIN23 GENCY FUND. 

24 (a) LIMITATION ON USE OF CONTINGENCY FUND

25 GRANTS.—Section 403(b)(3) of the Social Security Act 


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1 (42 U.S.C. 603(b)(3)) is amended by inserting at the end 

2 the following: 

3 ‘‘(D) LIMITATION ON USE OF FUNDS.— 

4 Funds received by a State under this paragraph 

5 shall be used solely to support training pro6 grams leading to a credential that is directly 

7 linked to the employment opportunities in the 

8 local area or region involved in order to pro9 mote the employment of current or recent re10 cipients of assistance under the State program 

11 funded under this Part (including non-custodial 

12 parents of such recipients).’’. 

13 (b) ELIMINATION OF MAINTENANCE OF EFFORT RE14 QUIREMENT FOR CONTINGENCY FUND.—Section 409(a) 

15 of such Act (42 U.S.C. 609(a)) is amended by striking 

16 paragraph (10). 

17 (c) MODIFICATION OF ANNUAL RECONCILIATION RE18 QUIREMENT FOR CONTINGENCY FUND.—Section 

19 403(b)(6)(B)(i)(II) of such Act (42 U.S.C. 

20 603(b)(6)(B)(i)(II)) is amended by inserting before ‘‘his21 toric’’ the following: ‘‘the applicable percentage (as defined 

22 in section 409(a)(7)(B)(ii)) of’’. 

23 SEC. 1013. TRAINING FOR IN-DEMAND JOBS. 

24 (a) VOCATIONAL EDUCATIONAL TRAINING FOR EM25 PLOYMENT IN AN IN-DEMAND OCCUPATION.—Section 


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1 407(d)(8) of the Social Security Act (42 U.S.C. 

2 607(d)(8)) is amended to read as follows: 

3 ‘‘(8) vocational educational training not to ex4 ceed 12 months for any individual, or not to exceed 

5 24 months for any individual participating in a 

6 training program leading to a credential that is di7 rectly linked to the employment opportunities in the 

8 individual’s local area or region;’’. 

9 (b) TREATMENT OF STUDENTS UNDER 20 YEARS OF

10 AGE AS ENGAGED IN WORK.—Section 407(c)(2)(D) of 

11 such Act (42 U.S.C. 607(c)(2)(D)) is amended by striking 

12 ‘‘, or (if the month is in fiscal year 2000 or thereafter) 

13 deemed to be engaged in work for the month by reason 

14 of subparagraph (C) of this paragraph’’. 

15 SEC. 1014. EFFECTIVE DATE. 

16 The amendments made by this title shall take effect 

17 on the date of the enactment of this title. 


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1 TITLE XI—RESTORING SUPPLE2 MENTAL NUTRITION ASSIST3 ANCE PROGRAMS FUNDING 

4 CUTS INSTITUTED IN FARM 

5 BILL (HEAT-AND-EAT) 

6 SEC. 1101. RESTORATION OF STANDARD UTILITY ALLOW7 ANCES BASED ON THE RECEIPT OF ENERGY 

8 ASSISTANCE PAYMENTS. 

9 (a) STANDARD UTILITY ALLOWANCES IN THE SUP10 PLEMENTAL NUTRITION ASSISTANCE PROGRAM.—Section 

11 5(e)(6)(C) of the Food and Nutrition Act of 2008 (7 

12 U.S.C. 2014(e)(6)(C)) is amended— 

13 (1) in clause (i) by striking ‘‘, subject to clause 

14 (iv)’’, and 

15 (2) in clause (iv) by striking subclause (I) and 

16 inserting the following: 

17 ‘‘(I) IN GENERAL.—Subject to 

18 subclause (II), if a State agency elects 

19 to use a standard utility allowance 

20 that reflects heating or cooling costs, 

21 the standard utility allowance shall be 

22 made available to households receiving 

23 a payment, or on behalf of which a 

24 payment is made, under the Low-In25 come Home Energy Assistance Act of 


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1 1981 (42 U.S.C. 8621 et seq.) or 

2 other similar energy assistance pro3 gram, if the household still incurs out4 of-pocket heating or cooling expenses 

5 in excess of any assistance paid on be6 half of the household to an energy 

7 provider.’’. 

8 (b) CONFORMING AMENDMENT.—Section 

9 2605(f)(2)(A) of the Low-Income Home Energy Assist10 ance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended 

11 by striking ‘‘, except that, for purposes of the supple12 mental nutrition assistance program established under the 

13 Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), 

14 such payments or allowances were greater than $20 annu15 ally, consistent with section 5(e)(6)(C)(iv)(I) of that Act 

16 (7 U.S.C. 2014(e)(6)(C)(iv)(I)), as determined by the Sec17 retary of Agriculture’’. 

18 TITLE XII—HELPING HUNGRY 

19 STUDENTS LEARN 

20 SEC. 1201. FINDINGS. 

21 Congress makes the following findings: 

22 (1) In 2012, nearly one in five children in 

23 America lived in a household that lacked access to 

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1 lion American children who struggled with hunger at 

2 some time during the year. 

3 (2) Children who experience hunger are more 

4 likely to get sick and are more likely to be obese 

5 than those who do not. Children facing chronic hun6 ger also find it more difficult to concentrate in 

7 school and tend to exhibit higher levels of behavioral, 

8 emotional, and academic problems. 

9 (3) Federal programs play an important role in 

10 addressing childhood hunger. In 2013, 21 million 

11 students participated in the free or reduced-price 

12 lunch program. Eleven million students participated 

13 in the free or reduced-price breakfast program. 

14 Three million low-income children received free 

15 meals during the summer months. Forty-seven per16 cent of participants in the supplemental nutrition as17 sistance program are under the age of 18. 

18 (4) On average, students who eat school break19 fast achieve 17.5 percent higher scores on standard20 ized math tests, and attend 1.5 more days of school 

21 each year than those who do not. Students who at22 tend class more regularly are 20 percent more likely 

23 to graduate from high school. Participation in the 

24 school breakfast program is associated with children 

25 having a lower Body Mass Index. 


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1 SEC. 1202. SCHOOL LUNCH PROGRAM. 

2 Section 9(b) of the Richard B. Russell National 

3 School Lunch Act is amended— 

4 (1) in paragraph (1)(A), by inserting after the 

5 third sentence the following: ‘‘Notwithstanding any 

6 other provision of this Act and the Child Nutrition 

7 Act of 1966, for each school year beginning on or 

8 after the July 1 of the year following the year of en9 actment of the Pathways Out of Poverty Act of 

10 2014, the income guidelines for determining eligi11 bility for free lunches shall be 185 percent of the ap12 plicable family size income levels contained in the 

13 nonfarm income poverty guidelines prescribed by the 

14 Office of Management and Budget, as adjusted an15 nually in accordance with subparagraph (B)’’; and 

16 (2) in paragraph (9)(B), by inserting at the end 

17 the following: 

18 ‘‘(iii) TERMINATION OF REDUCED19 PRICE CATEGORY.—Beginning with the 

20 school year beginning July 1 of the year 

21 following the year of enactment of the 

22 Pathways Out of Poverty Act of 2014, no 

23 child shall be determined eligible for a re24 duced price lunch.’’. 


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1 SEC. 1203. SCHOOL BREAKFAST PROGRAM. 

2 (a) UNIVERSAL SCHOOL BREAKFAST PROGRAM.— 

3 Section 4(a) of the Child Nutrition Act of 1966 (42 U.S.C. 

4 1773(a)) is amended— 

5 (1) by striking ‘‘(a) There’’ and inserting: 

6 ‘‘(a)(1) There’’; and 

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

8 ‘‘(2) UNIVERSAL SCHOOL BREAKFAST PRO9 GRAM.—For each school year beginning on or after 

10 the July 1 of the year following the year of enact11 ment of the Pathways Out of Poverty Act of 2014, 

12 each school participating in the school breakfast pro13 gram under this section shall provide breakfast 

14 under the program to each student that desires such 

15 a breakfast at no cost to the student.’’. 

16 (b) NATIONAL AVERAGE PAYMENT RATE.—Section 

17 4(b)(1)(B) of the Child Nutrition Act of 1966 (42 U.S.C. 

18 1773(b)(1)(B)) is amended by adding at the end the fol19 lowing: ‘‘Notwithstanding any other provision of this Act 

20 or the Richard B. Russell National School Lunch Act, for 

21 each school year beginning on or after the July 1 of the 

22 year following the year of enactment of the Pathways Out 

23 of Poverty Act of 2014, the national average payment for 

24 each breakfast served to any child shall be equal to the 

25 national average payment for each free breakfast served 

26 during the school year beginning July 1 of the year of 


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1 enactment of the Pathways Out of Poverty Act of 2014 

2 (which shall be adjusted pursuant to section 11(a) of the 

3 Richard B. Russell National School Lunch Act).’’. 

4 (c) SEVERE NEED ASSISTANCE.—Section 4(d)(1) of 

5 the Child Nutrition Act of 1966 (42 U.S.C. 1773(d)(1)) 

6 is amended— 

7 (1) by striking ‘‘(A) during’’ and inserting: 

8 ‘‘(A)(i) during’’; 

9 (2) by striking ‘‘(B) in’’ and inserting ‘‘(ii) in’’; 

10 (3) by striking ‘‘subparagraph (A)’’ and insert11 ing ‘‘clause (i)’’; 

12 (4) by striking ‘‘met.’’ and inserting ‘‘met; 

13 and’’; and 

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

15 ‘‘(B) for each school year beginning on or 

16 after the July 1 of the year following the year 

17 of enactment of the Pathways Out of Poverty 

18 Act of 2014, there is an alternative breakfast 

19 serving model to increase participation in the 

20 school breakfast program, such as by serving 

21 breakfast in the classroom or having a school 

22 breakfast cart.’’. 


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1 SEC. 1204. SUMMER ELECTRONIC BENEFITS TRANSFER 

2 FOR CHILDREN PROGRAM. 

3 The Richard B. Russell National School Lunch Act 

4 (42 U.S.C. 1751 et seq.) is amended by adding at the end 

5 the following: 

6 ‘‘SEC. 30. SUMMER ELECTRONIC BENEFITS TRANSFER FOR 

7 CHILDREN PROGRAM. 

8 ‘‘(a) IN GENERAL.—From the amount appropriated 

9 to carry out this section, the Secretary shall carry out a 

10 summer electronic benefits transfer for children program 

11 by awarding grants to States that desire to participate in 

12 such program to assist such States with the initial admin13 istrative costs of such participation. 

14 ‘‘(b) PROGRAM REQUIREMENTS.—The summer elec15 tronic benefits transfer for children program carried out 

16 under this section shall have the same terms and condi17 tions as the summer electronic benefits transfer for chil18 dren demonstration project carried out under section 

19 749(g) of the Agriculture, Rural Development, and Food 

20 and Drug Administration, and Related Agencies Appro21 priations Act, 2010 (Public Law 111–80; 123 Stat. 2131), 

22 except that the Secretary shall prescribe an annual adjust23 ment for the monthly benefit of $60 per child that is ad24 justed at the time that the annual adjustments are made 

25 for the national average payment rates for breakfasts and 

26 lunches (pursuant to section 11(a) of this Act).’’. 


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1 SEC. 1205. WEEKENDS AND HOLIDAYS WITHOUT HUNGER. 

2 Section 18 of the Richard B. Russell National School 

3 Lunch Act (42 U.S.C. 1769) is amended by adding at the 

4 end the following: 

5 ‘‘(l) WEEKENDS AND HOLIDAYS WITHOUT HUN6 GER.— 

7 ‘‘(1) DEFINITIONS.—In this subsection: 

8 ‘‘(A) AT-RISK SCHOOL CHILD.—The term 

9 ‘at-risk school child’ has the meaning given the 

10 term in section 17(r)(1). 

11 ‘‘(B) ELIGIBLE INSTITUTION.— 

12 ‘‘(i) IN GENERAL.—The term ‘eligible 

13 institution’ means a public or private non14 profit institution that is determined by the 

15 Secretary to be able to meet safe food stor16 age, handling, and delivery standards es17 tablished by the Secretary. 

18 ‘‘(ii) INCLUSIONS.—The term ‘eligible 

19 institution’ includes— 

20 ‘‘(I) an elementary or secondary 

21 school or school food service authority; 

22 ‘‘(II) a food bank or food pantry; 

23 ‘‘(III) a homeless shelter; and 

24 ‘‘(IV) such other type of emer25 gency feeding agency as is approved 

26 by the Secretary. 


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1 ‘‘(2) ESTABLISHMENT.—Subject to the avail2 ability of appropriations provided in advance in an 

3 appropriations Act specifically for the purpose of 

4 carrying out this subsection, the Secretary shall es5 tablish a program under which the Secretary shall 

6 provide commodities, on a competitive basis, to State 

7 agencies for the purposes of enabling eligible institu8 tions to carry out projects to provide nutritious food 

9 to at-risk children on weekends and during extended 

10 school holidays during the school year. 

11 ‘‘(3) APPLICATIONS.—To participate in the pro12 gram under this subsection, a State agency shall 

13 submit an application to the Secretary at such time, 

14 in such manner, and containing such information as 

15 the Secretary may require. 

16 ‘‘(4) ELIGIBILITY.— 

17 ‘‘(A) IN GENERAL.—To be eligible to re18 ceive commodities under this subsection, an eli19 gible institution shall submit an application to 

20 the State agency involved at such time, in such 

21 manner, and containing such information as the 

22 State agency may require. 

23 ‘‘(B) PLAN.—An application under sub24 paragraph (A) shall include the plan of the eli25 gible institution for the distribution of nutriVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00219 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 tious foods to at-risk school children under the 

2 project to be carried out under this subsection, 

3 including— 

4 ‘‘(i) methods of food service delivery 

5 to at-risk school children; 

6 ‘‘(ii) assurances that children receiv7 ing foods under the project will not be pub8 licly separated or overtly identified; 

9 ‘‘(iii) lists of the types of food to be 

10 provided under the project and provisions 

11 to ensure food quality and safety; 

12 ‘‘(iv) information on the number of 

13 at-risk school children to be served and the 

14 per-child cost of providing the children 

15 with food; and 

16 ‘‘(v) such other information as the 

17 Secretary determines to be necessary to as18 sist the Secretary in evaluating projects 

19 that receive commodities under this sub20 section. 

21 ‘‘(5) PRIORITY.—In selecting applications under 

22 this subsection, a State agency shall give priority to 

23 eligible institutions that— 


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1 ‘‘(A) have on-going programs and experi2 ence serving populations with significant pro3 portions of at-risk school children; 

4 ‘‘(B) have a good record of experience in 

5 food delivery and food safety systems; 

6 ‘‘(C) maintain high-quality control, ac7 countability, and recordkeeping standards; 

8 ‘‘(D) provide children with readily 

9 consumable food of high nutrient content and 

10 quality; 

11 ‘‘(E) demonstrate cost efficiencies and the 

12 potential for obtaining supplemental funding 

13 from non-Federal sources to carry out projects; 

14 and 

15 ‘‘(F) demonstrate the ability to continue 

16 projects for the full approved term of the pilot 

17 project period. 

18 ‘‘(6) GUIDELINES.— 

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

20 issue guidelines containing the criteria for eligi21 ble institutions to receive commodities under 

22 this section from State agencies. 

23 ‘‘(B) INCLUSIONS.—The guidelines shall, 

24 to the maximum extent practicable within the 


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1 funds available and applications submitted, take 

2 into account— 

3 ‘‘(i) geographical variations in project 

4 locations that will be carried out by eligible 

5 institutions to include qualifying projects 

6 in rural, urban, and suburban areas with 

7 high proportions of families with at-risk 

8 school children; 

9 ‘‘(ii) different types of projects that 

10 offer nutritious foods on weekends and 

11 during school holidays to at-risk school 

12 children; and 

13 ‘‘(iii) institutional capacity to collect, 

14 maintain, and provide statistically valid in15 formation necessary for the Secretary— 

16 ‘‘(I) to analyze and evaluate the 

17 results of the pilot project; and 

18 ‘‘(II) to make recommendations 

19 to Congress. 

20 ‘‘(7) EVALUATION.— 

21 ‘‘(A) INTERIM EVALUATION.—Not later 

22 than November 30, 2016, the Secretary shall 

23 complete an interim evaluation of the pilot pro24 gram carried out under this subsection. 


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1 ‘‘(B) FINAL REPORT.—Not later than De2 cember 31, 2018, the Secretary shall submit to 

3 Congress a final report that contains— 

4 ‘‘(i) an evaluation of the pilot pro5 gram carried out under this subsection; 

6 and 

7 ‘‘(ii) any recommendations of the Sec8 retary for legislative action. 

9 ‘‘(8) FUNDING.— 

10 ‘‘(A) AUTHORIZATION OF APPROPRIA11 TIONS.—There is authorized to be appropriated 

12 to carry out this subsection such sums as are 

13 necessary, to remain available until expended. 

14 ‘‘(B) AVAILABILITY OF FUNDS.—Not more 

15 than 3 percent of the funds made available 

16 under subparagraph (A) may be used by the 

17 Secretary for expenses associated with review of 

18 the operations and evaluation of the projects 

19 carried out under this subsection.’’. 


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1 TITLE XIII—FOOD ASSISTANCE 

2 TO IMPROVE REINTEGRA3 TION ACT 

4 SEC. 1301. REPEAL OF DENIAL OF BENEFITS. 

5 Section 115 of the Personal Responsibility and Work 

6 Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) 

7 is amended— 

8 (1) in subsection (a) by striking paragraph (2); 

9 (2) in subsection (b) by striking paragraph (2); 

10 and 

11 (3) in subsection (e) by striking paragraph (2). 

12 DIVISION D—LABOR/JOB 

13 TRAINING 

14 TITLE XV—ASSISTANCE FOR THE 

15 UNEMPLOYED AND PATH16 WAYS BACK TO WORK 

17 Subtitle A—Supporting 

18 Unemployed Workers 

19 SEC. 1501. SHORT TITLE. 

20 This subtitle may be cited as the ‘‘Supporting Unem21 ployed Workers Act of 2014’’. 


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1 PART I—EXTENSION OF EMERGENCY UNEMPLOY2 MENT COMPENSATION AND CERTAIN EX3 TENDED BENEFITS PROVISIONS, AND ESTAB4 LISHMENT OF SELF-EMPLOYMENT ASSIST5 ANCE PROGRAM 

6 SEC. 1511. EXTENSION OF EMERGENCY UNEMPLOYMENT 

7 COMPENSATION PROGRAM. 

8 (a) IN GENERAL.—Section 4007 of the Supplemental 

9 Appropriations Act, 2008 (Public Law 110–252; 26 

10 U.S.C. 3304 note) is amended by striking ‘‘January 1, 

11 2014’’ and inserting ‘‘January 1, 2016’’. 

12 (b) FUNDING.—Section 4004(e)(1) of the Supple13 mental Appropriations Act, 2008 (Public Law 110–252; 

14 26 U.S.C. 3304 note) is amended— 

15 (1) in subparagraph (I), by striking ‘‘and’’ at 

16 the end; 

17 (2) in subparagraph (J), by inserting ‘‘and’’ at 

18 the end; and 

19 (3) by inserting after subparagraph (J) the fol20 lowing: 

21 ‘‘(K) the amendments made by section 

22 1511(a) of the Supporting Unemployed Work23 ers Act of 2014; and’’. 

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

25 this section shall take effect as if included in the enact26 ment of the Tax Relief, Unemployment Insurance ReauVerDate Mar 15 2010 01:53 Aug 19, 2014 Jkt 039200 PO 00000 Frm 00225 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 thorization, and Job Creation Act of 2010 (Public Law 

2 111–312; 26 U.S.C. 3304 note). 

3 SEC. 1512. TEMPORARY EXTENSION OF EXTENDED BENEFIT 

4 PROVISIONS. 

5 (a) IN GENERAL.—Section 2005 of the Assistance for 

6 Unemployed Workers and Struggling Families Act, as 

7 contained in Public Law 111–5 (26 U.S.C. 3304 note), 

8 is amended— 

9 (1) by striking ‘‘December 31, 2013’’ each 

10 place it appears and inserting ‘‘December 31, 

11 2015’’; and 

12 (2) in subsection (c), by striking ‘‘June 30, 

13 2014’’ and inserting ‘‘June 30, 2016’’. 

14 (b) EXTENSION OF MATCHING FOR STATES WITH

15 NO WAITING WEEK.—Section 5 of the Unemployment 

16 Compensation Extension Act of 2008 (Public Law 110– 

17 449; 26 U.S.C. 3304 note) is amended by striking ‘‘June 

18 30, 2014’’ and inserting ‘‘June 30, 2016’’. 

19 (c) EXTENSION OF MODIFICATION OF INDICATORS

20 UNDER THE EXTENDED BENEFIT PROGRAM.—Section 

21 203 of the Federal-State Extended Unemployment Com22 pensation Act of 1970 (26 U.S.C. 3304 note) is amend23 ed— 

24 (1) in subsection (d), by striking ‘‘December 

25 31, 2013’’ and inserting ‘‘December 31, 2015’’; and 


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1 (2) in subsection (f)(2), by striking ‘‘December 

2 31, 2013’’ and inserting ‘‘December 31, 2015’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect as if included in the enact5 ment of the Tax Relief, Unemployment Insurance Reau6 thorization, and Job Creation Act of 2010 (Public Law 

7 111–312; 26 U.S.C. 3304 note). 

8 SEC. 1513. ADDITIONAL EXTENDED UNEMPLOYMENT BENE9 FITS UNDER THE RAILROAD UNEMPLOY10 MENT INSURANCE ACT. 

11 (a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail12 road Unemployment Insurance Act (45 U.S.C. 

13 352(c)(2)(D)(iii)) is amended— 

14 (1) by striking ‘‘June 30, 2013’’ and inserting 

15 ‘‘June 30, 2015’’; and 

16 (2) by striking ‘‘December 31, 2013’’ and in17 serting ‘‘December 31, 2015’’. 

18 (b) CLARIFICATION ON AUTHORITY TO USE

19 FUNDS.—Funds appropriated under either the first or 

20 second sentence of clause (iv) of section 2(c)(2)(D) of the 

21 Railroad Unemployment Insurance Act (45 U.S.C. 

22 352(c)(2)(D)) shall be available to cover the cost of addi23 tional extended unemployment benefits provided under 

24 such section 2(c)(2)(D) by reason of the amendments 

25 made by subsection (a) as well as to cover the cost of such 


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1 benefits provided under such section 2(c)(2)(D), as in ef2 fect on the day before the date of the enactment of this 

3 Act. 

4 PART II—REEMPLOYMENT NOW PROGRAM 

5 SEC. 1521. ESTABLISHMENT OF REEMPLOYMENT NOW PRO6 GRAM. 

7 (a) IN GENERAL.—There is established the Reem8 ployment NOW program to be carried out by the Sec9 retary of Labor in accordance with this part in order to 

10 facilitate the reemployment of individuals who are receiv11 ing emergency unemployment compensation under title IV 

12 of the Supplemental Appropriations Act, 2008 (Public 

13 Law 110–252; 26 U.S.C. 3304 note) (hereafter in this 

14 part referred to as ‘‘EUC claimants’’). 

15 (b) AUTHORIZATION AND APPROPRIATION.—There 

16 are authorized to be appropriated $4,000,000,000 for fis17 cal year 2015 to carry out the Reemployment NOW pro18 gram under this part. 

19 SEC. 1522. DISTRIBUTION OF FUNDS. 

20 (a) IN GENERAL.—Of the amount made available 

21 under section 1521(b) to carry out this part, the Secretary 

22 of Labor shall— 

23 (1) reserve up to 1 percent for the costs of Fed24 eral administration and for carrying out rigorous 


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1 evaluations of the activities conducted under this 

2 part; and 

3 (2) allot the remainder of the funds not re4 served under paragraph (1) in accordance with the 

5 requirements of subsection (b) and (c) to States that 

6 have approved plans under section 1523. 

7 (b) ALLOTMENT FORMULA.— 

8 (1) FORMULA FACTORS.—The Secretary of 

9 Labor shall allot the funds available under sub10 section (a)(2) as follows— 

11 (A) two-thirds of such funds shall be allot12 ted on the basis of the relative number of un13 employed individuals in each State, compared to 

14 the total number of unemployed individuals in 

15 all States; and 

16 (B) one-third of such funds shall be allot17 ted on the basis of the relative number of indi18 viduals in each State who have been unem19 ployed for 27 weeks or more, compared to the 

20 total number of individuals in all States who 

21 have been unemployed for 27 weeks or more. 

22 (2) CALCULATION.—For purposes of paragraph 

23 (1), the number of unemployed individuals and the 

24 number of individuals unemployed for 27 weeks or 


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1 more shall be based on the data for the most recent 

2 12-month period, as determined by the Secretary. 

3 (c) REALLOTMENT.— 

4 (1) FAILURE TO SUBMIT STATE PLAN.—If a 

5 State does not submit a State plan by the time spec6 ified in section 1523(b), or a State does not receive 

7 approval of a State plan, the amount the State 

8 would have been eligible to receive pursuant to the 

9 formula under subsection (b) shall be allotted to 

10 States that receive approval of the State plan under 

11 section 1523 in accordance with the relative allot12 ments of such States as determined by the Secretary 

13 under subsection (b). 

14 (2) FAILURE TO IMPLEMENT ACTIVITIES ON A

15 TIMELY BASIS.—The Secretary of Labor may, in ac16 cordance with procedures and criteria established by 

17 the Secretary, recapture the portion of the State al18 lotment under this part that remains unobligated if 

19 the Secretary determines such funds are not being 

20 obligated at a rate sufficient to meet the purposes 

21 of this part. The Secretary shall reallot such recap22 tured funds to other States that are not subject to 

23 recapture in accordance with the relative share of 

24 the allotments of such States as determined by the 

25 Secretary under subsection (b). 


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1 (3) RECAPTURE OF FUNDS.—Funds recaptured 

2 under paragraph (2) shall be available for reobliga3 tion not later than December 31, 2015. 

4 SEC. 1523. STATE PLAN. 

5 (a) IN GENERAL.—For a State to be eligible to re6 ceive an allotment under section 1522, a State shall sub7 mit to the Secretary of Labor a State plan in such form 

8 and containing such information as the Secretary may re9 quire, which at a minimum shall include— 

10 (1) a description of the activities to be carried 

11 out by the State to assist in the reemployment of eli12 gible individuals to be served in accordance with this 

13 part, including which of the activities authorized in 

14 sections 1524–1528 the State intends to carry out 

15 and an estimate of the amounts the State intends to 

16 allocate to the activities, respectively; 

17 (2) a description of the performance outcomes 

18 to be achieved by the State through the activities 

19 carried out under this part, including the employ20 ment outcomes to be achieved by participants and 

21 the processes the State will use to track perform22 ance, consistent with guidance provided by the Sec23 retary of Labor regarding such outcomes and proc24 esses; 


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1 (3) a description of coordination of activities to 

2 be carried out under this part with activities under 

3 title I of the Workforce Investment Act of 1998 (as 

4 in effect on the day before the date of enactment of 

5 the Workforce Innovation and Opportunity Act), the 

6 Wagner-Peyser Act, and other appropriate Federal 

7 programs; 

8 (4) the timelines for implementation of the ac9 tivities described in the plan and the number of 

10 EUC claimants expected to be enrolled in such ac11 tivities by quarter; 

12 (5) assurances that the State will participate in 

13 the evaluation activities carried out by the Secretary 

14 of Labor under this section; 

15 (6) assurances that the State will provide ap16 propriate reemployment services, including coun17 seling, to any EUC claimant who participates in any 

18 of the programs authorized under this part; and 

19 (7) assurances that the State will report such 

20 information as the Secretary may require relating to 

21 fiscal, performance and other matters, including em22 ployment outcomes and effects, which the Secretary 

23 determines are necessary to effectively monitor the 

24 activities carried out under this part. 


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1 (b) PLAN SUBMISSION AND APPROVAL.—A State 

2 plan under this section shall be submitted to the Secretary 

3 of Labor for approval not later than 30 days after the 

4 Secretary issues guidance relating to submission of such 

5 plan. The Secretary shall approve such plans if the Sec6 retary determines that the plans meet the requirements 

7 of this part and are appropriate and adequate to carry 

8 out the purposes of this part. 

9 (c) PLAN MODIFICATIONS.—A State may submit 

10 modifications to a State plan that has been approved 

11 under this part, and the Secretary of Labor may approve 

12 such modifications, if the plan as modified would meet the 

13 requirements of this part and are appropriate and ade14 quate to carry out the purposes of this part. 

15 SEC. 1524. BRIDGE TO WORK PROGRAM. 

16 (a) IN GENERAL.—A State may use funds allotted 

17 to the State under this part to establish and administer 

18 a Bridge to Work program described in this section. 

19 (b) DESCRIPTION OF PROGRAM.—In order to in20 crease individuals’ opportunities to move to permanent 

21 employment, a State may establish a Bridge to Work pro22 gram to provide an EUC claimant with short-term work 

23 experience placements with an eligible employer, during 

24 which time such individual— 


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1 (1) shall be paid emergency unemployment 

2 compensation payable under title IV of the Supple3 mental Appropriations Act, 2008 (Public Law 110– 

4 252; 26 U.S.C. 3304 note), as wages for work per5 formed, and as specified in subsection (c); 

6 (2) shall be paid the additional amount de7 scribed in subsection (e) as augmented wages for 

8 work performed; and 

9 (3) may be paid compensation in addition to 

10 the amounts described in paragraphs (1) and (2) by 

11 a State or by a participating employer as wages for 

12 work performed. 

13 (c) PROGRAM ELIGIBILITY AND OTHER REQUIRE14 MENTS.—For purposes of this program— 

15 (1) individuals who, except for the requirements 

16 described in paragraph (3), are eligible to receive 

17 emergency unemployment compensation payments 

18 under title IV of the Supplemental Appropriations 

19 Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 

20 note), and who choose to participate in the program 

21 described in subsection (b), shall receive such pay22 ments as wages for work performed during their vol23 untary participation in the program described under 

24 subsection (b); 


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1 (2) the wages payable to individuals described 

2 in paragraph (1) shall be paid from the emergency 

3 unemployment compensation account for such indi4 vidual as described in section 4002 of the Supple5 mental Appropriations Act, 2008 (Public Law 110– 

6 252; 26 U.S.C. 3304 note), and the amount in such 

7 individual’s account shall be reduced accordingly; 

8 (3) the wages payable to an individual described 

9 in paragraph (1) shall be payable in the same 

10 amount, at the same interval, on the same terms, 

11 and subject to the same conditions under title IV of 

12 the Supplemental Appropriations Act, 2008 (Public 

13 Law 110–252; 26 U.S.C. 3304 note), except that— 

14 (A) State requirements applied under such 

15 Act relating to availability for work and active 

16 search for work are not applicable to such indi17 viduals who participate for at least 25 hours 

18 per week in the program described in subsection 

19 (b) for the duration of such individual’s partici20 pation in the program; 

21 (B) State requirements applied under such 

22 Act relating to disqualifying income regarding 

23 wages earned shall not apply to such individuals 

24 who participate for at least 25 hours per week 


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1 in the program described in subsection (b), and 

2 shall not apply with respect to— 

3 (i) the wages described under sub4 section (b); and 

5 (ii) any wages, in addition to those de6 scribed under subsection (b), whether paid 

7 by a State or a participating employer for 

8 the same work activities; 

9 (C) State prohibitions or limitations ap10 plied under such Act relating to employment 

11 status shall not apply to such individuals who 

12 participate in the program described in sub13 section (b); and 

14 (D) State requirements applied under such 

15 Act relating to an individual’s acceptance of an 

16 offer of employment shall not apply with regard 

17 to an offer of long-term employment from a 

18 participating employer made to such individual 

19 who is participating in the program described in 

20 subsection (b) in a work experience provided by 

21 such employer, where such long-term employ22 ment is expected to commence or commences at 

23 the conclusion of the duration specified in para24 graph (4)(A); 


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1 (4) the program shall be structured so that in2 dividuals described in paragraph (1) may participate 

3 in the program for up to— 

4 (A) 8 weeks, and 

5 (B) 38 hours for each such week; 

6 (5) a State shall ensure that all individuals par7 ticipating in the program are covered by a workers’ 

8 compensation insurance program; and 

9 (6) the program meets such other requirements 

10 as the Secretary of Labor determines to be appro11 priate in guidance issued by the Secretary. 

12 (d) STATE REQUIREMENTS.— 

13 (1) CERTIFICATION OF ELIGIBLE EMPLOYER.— 

14 A State may certify as eligible for participation in 

15 the program under this section any employer that 

16 meets the eligibility criteria as established in guid17 ance by the Secretary of Labor, except that an em18 ployer shall not be certified as eligible for participa19 tion in the program described under subsection 

20 (b)— 

21 (A) if such employer— 

22 (i) is a Federal, State, or local govern23 ment entity; 

24 (ii) would engage an eligible individual 

25 in work activities under any employer’s 


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1 grant, contract, or subcontract with a Fed2 eral, State, or local government entity, ex3 cept with regard to work activities under 

4 any employer’s supply contract or sub5 contract; 

6 (iii) is delinquent with respect to any 

7 taxes or employer contributions described 

8 under sections 3301 and 3302(a)(1) of the 

9 Internal Revenue Code of 1986 or with re10 spect to any related reporting require11 ments; 

12 (iv) is engaged in the business of sup13 plying workers to other employers and 

14 would participate in the program for the 

15 purpose of supplying individuals partici16 pating in the program to other employers; 

17 or 

18 (v) has previously participated in the 

19 program and the State has determined 

20 that such employer has failed to abide by 

21 any of the requirements specified in sub22 sections (h), (i), or (j), or by any other re23 quirements that the Secretary may estab24 lish for employers under subsection (c)(6); 

25 and 


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1 (B) unless such employer provides assur2 ances that it has not displaced existing workers 

3 pursuant to the requirements of subsection (h). 

4 (2) AUTHORIZED ACTIVITIES.—Funds allotted 

5 to a State under this part for the program— 

6 (A) shall be used to— 

7 (i) recruit employers for participation 

8 in the program; 

9 (ii) review and certify employers iden10 tified by eligible individuals seeking to par11 ticipate in the program; 

12 (iii) ensure that reemployment and 

13 counseling services are available for pro14 gram participants, including services de15 scribing the program under subsection (b), 

16 prior to an individual’s participation in 

17 such program; 

18 (iv) establish and implement processes 

19 to monitor the progress and performance 

20 of individual participants for the duration 

21 of the program; 

22 (v) prevent misuse of the program; 

23 and 


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1 (vi) pay augmented wages to eligible 

2 individuals, if necessary, as described in 

3 subsection (e); and 

4 (B) may be used— 

5 (i) to pay workers’ compensation in6 surance premiums to cover all individuals 

7 participating in the program, except that, 

8 if a State opts not to make such payments 

9 directly to a State administered workers’ 

10 compensation program, the State involved 

11 shall describe in the approved State plan 

12 the means by which such State shall en13 sure workers’ compensation or equivalent 

14 coverage for all individuals who participate 

15 in the program; 

16 (ii) to pay compensation to a partici17 pating individual that is in addition to the 

18 amounts described in subsections (c)(1) 

19 and (e) as wages for work performed; 

20 (iii) to provide supportive services, 

21 such as transportation, child care, and de22 pendent care, that would enable individuals 

23 to participate in the program; 

24 (iv) for the administration and over25 sight of the program; and 


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1 (v) to fulfill additional program re2 quirements included in the approved State 

3 plan. 

4 (e) PAYMENT OF AUGMENTED WAGES IF NEC5 ESSARY.—In the event that the wages described in sub6 section (c)(1) are not sufficient to equal or exceed the min7 imum wages that are required to be paid by an employer 

8 under section 6(a)(1) of the Fair Labor Standards Act 

9 of 1938 (29 U.S.C. 206(a)(1)) or the applicable State or 

10 local minimum wage law, whichever is higher, a State shall 

11 pay augmented wages to a program participant in any 

12 amount necessary to cover the difference between— 

13 (1) such minimum wages amount; and 

14 (2) the wages payable under subsection (c)(1). 

15 (f) EFFECT OF WAGES ON ELIGIBILITY FOR OTHER

16 PROGRAMS.—None of the wages paid under this section 

17 shall be considered as income for the purposes of deter18 mining eligibility for and the amount of income transfer 

19 and in-kind aid furnished under any Federal or federally 

20 assisted program based on need. 

21 (g) EFFECT OF WAGES, WORK ACTIVITIES, AND

22 PROGRAM PARTICIPATION ON CONTINUING ELIGIBILITY

23 FOR EMERGENCY UNEMPLOYMENT COMPENSATION.— 

24 Any wages paid under this section and any additional 

25 wages paid by an employer to an individual described in 


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1 subsection (c)(1), and any work activities performed by 

2 such individual as a participant in the program, shall not 

3 be construed so as to render such individual ineligible to 

4 receive emergency unemployment compensation under title 

5 IV of the Supplemental Appropriations Act, 2008 (Public 

6 Law 110–252; 26 U.S.C. 3304 note). 

7 (h) NONDISPLACEMENT OF EMPLOYEES.— 

8 (1) PROHIBITION.—An employer shall not use a 

9 program participant to displace (including a partial 

10 displacement, such as a reduction in the hours of 

11 non-overtime work, wages, or employment benefits) 

12 any current employee (as of the date of the partici13 pation). 

14 (2) OTHER PROHIBITIONS.—An employer shall 

15 not permit a program participant to perform work 

16 activities related to any job for which— 

17 (A) any other individual is on layoff from 

18 the same or any substantially equivalent posi19 tion; 

20 (B) the employer has terminated the em21 ployment of any employee or otherwise reduced 

22 the workforce of the employer with the inten23 tion of filling or partially filling the vacancy so 

24 created with the work activities to be performed 

25 by a program participant; 


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1 (C) there is a strike or lock out at the 

2 worksite that is the participant’s place of em3 ployment; or 

4 (D) the job is created in a manner that 

5 will infringe in any way upon the promotional 

6 opportunities of currently employed individuals 

7 (as of the date of the participation). 

8 (i) PROHIBITION ON IMPAIRMENT OF CONTRACTS.— 

9 An employer shall not, by means of assigning work activi10 ties under this section, impair an existing contract for 

11 services or a collective bargaining agreement, and no such 

12 activity that would be inconsistent with the terms of a col13 lective bargaining agreement shall be undertaken without 

14 the written concurrence of the labor organization that is 

15 signatory to the collective bargaining agreement. 

16 (j) LIMITATION ON EMPLOYER PARTICIPATION.—If, 

17 after 24 weeks of participation in the program, an em18 ployer has not made an offer of suitable long-term employ19 ment to any individual described under subsection (c)(1) 

20 who was placed with such employer and has completed the 

21 program, a State shall bar such employer from further 

22 participation in the program. States may impose addi23 tional conditions on participating employers to ensure that 

24 an appropriate number of participants receive offers of 

25 suitable long-term employment. 


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1 (k) FAILURE TO MEET PROGRAM REQUIREMENTS.— 

2 If a State makes a determination based on information 

3 provided to the State, or acquired by the State by means 

4 of its administration and oversight functions, that a par5 ticipating employer under this section has violated a re6 quirement of this section, the State shall bar such em7 ployer from further participation in the program. The 

8 State shall establish a process whereby an individual de9 scribed in subsection (c)(1), or any other affected indi10 vidual or entity, may file a complaint with the State relat11 ing to a violation of any requirement or prohibition under 

12 this section. 

13 (l) PARTICIPANT OPTION TO TERMINATE PARTICIPA14 TION IN BRIDGE TO WORK PROGRAM.— 

15 (1) TERMINATION.—An individual who is par16 ticipating in a program described in subsection (b) 

17 may opt to discontinue participation in such pro18 gram. 

19 (2) CONTINUED ELIGIBILITY FOR EMERGENCY

20 UNEMPLOYMENT COMPENSATION.—An individual 

21 who opts to discontinue participation in such pro22 gram, is terminated from such program by a partici23 pating employer, or who has completed participation 

24 in such program, and who continues to meet the eli25 gibility requirements for emergency unemployment 


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1 compensation under title IV of the Supplemental 

2 Appropriations Act, 2008 (Public Law 110–252; 26 

3 U.S.C. 3304 note), shall receive emergency unem4 ployment compensation payments with respect to 

5 subsequent weeks of unemployment, to the extent 

6 that amounts remain in the account established for 

7 such individual under section 4002(b) of such Act or 

8 to the extent that such individual commences receiv9 ing the amounts described in subsections (c), (d), or 

10 (e) of such section, respectively. 

11 (m) EFFECT OF OTHER LAWS.—Unless otherwise 

12 provided in this section, nothing in this section shall be 

13 construed to alter or affect the rights or obligations under 

14 any Federal, State, or local laws with respect to any indi15 vidual described in subsection (c)(1) and with respect to 

16 any participating employer under this section. 

17 (n) TREATMENT OF PAYMENTS.—All wages or other 

18 payments to an individual under this section shall be treat19 ed as payments of unemployment compensation for pur20 poses of section 209 of the Social Security Act (42 U.S.C. 

21 409) and for purposes of subtitle A and sections 3101, 

22 3111, and 3301 of the Internal Revenue Code of 1986. 


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1 SEC. 1525. WAGE INSURANCE. 

2 (a) IN GENERAL.—A State may use the funds allot3 ted to the State under this part to provide a wage insur4 ance program for EUC claimants. 

5 (b) BENEFITS.—The wage insurance program pro6 vided under this section may use funds allotted to the 

7 State under this part to pay, for a period not to exceed 

8 2 years, to a worker described in subsection (c), up to 50 

9 percent of the difference between— 

10 (1) the wages received by the worker at the 

11 time of separation; and 

12 (2) the wages received by the worker for reem13 ployment. 

14 (c) INDIVIDUAL ELIGIBILITY.—The benefits de15 scribed in subsection (b) may be paid to an individual who 

16 is an EUC claimant at the time such individual obtains 

17 reemployment and who— 

18 (1) is at least 50 years of age; 

19 (2) earns not more than $50,000 per year in 

20 wages from reemployment; 

21 (3) is employed on a full-time basis as defined 

22 by the law of the State; and 

23 (4) is not employed by the employer from which 

24 the individual was last separated. 

25 (d) TOTAL AMOUNT OF PAYMENTS.—A State shall 

26 establish a maximum amount of payments per individual 


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1 for purposes of payments described in subsection (b) dur2 ing the eligibility period described in such subsection. 

3 (e) NON-DISCRIMINATION REGARDING WAGES.—An 

4 employer shall not pay a worker described in subsection 

5 (c) less than such employer pays to a regular worker in 

6 the same or substantially equivalent position. 

7 SEC. 1526. ENHANCED REEMPLOYMENT STRATEGIES. 

8 (a) IN GENERAL.—A State may use funds allotted 

9 under this part to provide a program of enhanced reem10 ployment services to EUC claimants. In addition to the 

11 provision of services to such claimants, the program may 

12 include the provision of reemployment services to individ13 uals who are unemployed and have exhausted their rights 

14 to emergency unemployment compensation under title IV 

15 of the Supplemental Appropriations Act, 2008 (Public 

16 Law 110–252; 26 U.S.C. 3304 note). The program shall 

17 provide reemployment services that are more intensive 

18 than the reemployment services provided by the State 

19 prior to the receipt of the allotment under this part. 

20 (b) TYPES OF SERVICES.—The enhanced reemploy21 ment services described in subsection (a) may include serv22 ices such as— 

23 (1) assessments, counseling, and other intensive 

24 services that are provided by staff on a one-to-one 

25 basis and may be customized to meet the reemployVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00247 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 ment needs of EUC claimants and individuals de2 scribed in subsection (a); 

3 (2) comprehensive assessments designed to 

4 identify alternative career paths; 

5 (3) case management; 

6 (4) reemployment services that are provided 

7 more frequently and more intensively than such re8 employment services have previously been provided 

9 by the State; and 

10 (5) services that are designed to enhance com11 munication skills, interviewing skills, and other skills 

12 that would assist in obtaining reemployment. 

13 SEC. 1527. SELF-EMPLOYMENT PROGRAMS. 

14 A State may use funds allotted to the State under 

15 this part, in an amount specified under an approved State 

16 plan, for the administrative costs associated with starting 

17 up the self-employment assistance program described in 

18 section 4001(i) of the Supplemental Appropriations Act, 

19 2008 (Public Law 110–252; 26 U.S.C. 3304 note). 

20 SEC. 1528. ADDITIONAL INNOVATIVE PROGRAMS. 

21 (a) IN GENERAL.—A State may use funds allotted 

22 under this part to provide a program for innovative activi23 ties, which use a strategy that is different from the reem24 ployment strategies described in sections 1524–1527 and 

25 which are designed to facilitate the reemployment of EUC 


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1 claimants. In addition to the provision of activities to such 

2 claimants, the program may include the provision of activi3 ties to individuals who are unemployed and have exhausted 

4 their rights to emergency unemployment compensation 

5 under title IV of the Supplemental Appropriations Act, 

6 2008 (Public Law 110–252; 26 U.S.C. 3304 note). 

7 (b) CONDITIONS.—The innovative activities approved 

8 in accordance with subsection (a)— 

9 (1) shall directly benefit EUC claimants and, if 

10 applicable, individuals described in subsection (a), ei11 ther as a benefit paid to such claimant or individual 

12 or as a service provided to such claimant or indi13 vidual; 

14 (2) shall not result in a reduction in the dura15 tion or amount of, emergency unemployment com16 pensation for which EUC claimants would otherwise 

17 be eligible; 

18 (3) shall not include a reduction in the dura19 tion, amount of or eligibility for regular compensa20 tion or extended benefits; 

21 (4) shall not be used to displace (including a 

22 partial displacement, such as a reduction in the 

23 hours of non-overtime work, wages, or employment 

24 benefits) any currently employed employee (as of the 

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1 pant to perform work activities related to any job for 

2 which— 

3 (A) any other individual is on layoff from 

4 the same or any substantially equivalent job; 

5 (B) the employer has terminated the em6 ployment of any regular employee or otherwise 

7 reduced the workforce of the employer with the 

8 intention of filling or partially filling the va9 cancy so created with the work activities to be 

10 performed by a program participant; 

11 (C) there is a strike or lock out at the 

12 worksite that is the participant’s place of em13 ployment; or 

14 (D) the job is created in a manner that 

15 will infringe in any way upon the promotional 

16 opportunities of currently employed individuals 

17 (as of the date of the participation); and 

18 (5) shall not be in violation of any Federal, 

19 State, or local law. 

20 SEC. 1529. GUIDANCE AND ADDITIONAL REQUIREMENTS. 

21 The Secretary of Labor may establish through guid22 ance, without regard to the requirements of section 553 

23 of title 5, United States Code, such additional require24 ments, including requirements regarding the allotment, re25 capture, and reallotment of funds, and reporting requireVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00250 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 ments, as the Secretary determines to be necessary to en2 sure fiscal integrity, effective monitoring, and appropriate 

3 and prompt implementation of the activities under this 

4 Act. 

5 SEC. 1530. REPORT OF INFORMATION AND EVALUATIONS 

6 TO CONGRESS AND THE PUBLIC. 

7 The Secretary of Labor shall provide to the appro8 priate Committees of the Congress and make available to 

9 the public the information reported pursuant to section 

10 1529 and the evaluations of activities carried out pursuant 

11 to the funds reserved under section 1522(a)(1). 

12 SEC. 1531. STATE. 

13 For purposes of this part, the term ‘‘State’’ has the 

14 meaning given that term in section 205 of the Federal15 State Extended Unemployment Compensation Act of 1970 

16 (26 U.S.C. 3304 note). 

17 PART III—SHORT-TIME COMPENSATION 

18 PROGRAM 

19 SEC. 1541. TEMPORARY FINANCING OF SHORT-TIME COM20 PENSATION PAYMENTS IN STATES WITH PRO21 GRAMS IN LAW. 

22 (a) PAYMENTS TO STATES.— 

23 (1) IN GENERAL.—Subject to paragraph (3), 

24 there shall be paid to a State an amount equal to 

25 100 percent of the amount of short-time compensaVerDate Mar 15 2010 23:45 Aug 18, 2014 Jkt 039200 PO 00000 Frm 00251 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 tion paid under a short-time compensation program 

2 (as defined in section 3306(v) of the Internal Rev3 enue Code of 1986) under the provisions of the 

4 State law. 

5 (2) TERMS OF PAYMENTS.—Payments made to 

6 a State under paragraph (1) shall be payable by way 

7 of reimbursement in such amounts as the Secretary 

8 estimates the State will be entitled to receive under 

9 this section for each calendar month, reduced or in10 creased, as the case may be, by any amount by 

11 which the Secretary finds that the Secretary’s esti12 mates for any prior calendar month were greater or 

13 less than the amounts which should have been paid 

14 to the State. Such estimates may be made on the 

15 basis of such statistical, sampling, or other method 

16 as may be agreed upon by the Secretary and the 

17 State agency of the State involved. 

18 (3) LIMITATIONS ON PAYMENTS.— 

19 (A) GENERAL PAYMENT LIMITATIONS.— 

20 No payments shall be made to a State under 

21 this section for short-time compensation paid to 

22 an individual by the State during a benefit year 

23 in excess of 26 times the amount of regular 

24 compensation (including dependents’ allowVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00252 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 ances) under the State law payable to such in2 dividual for a week of total unemployment. 

3 (B) EMPLOYER LIMITATIONS.—No pay4 ments shall be made to a State under this sec5 tion for benefits paid to an individual by the 

6 State under a short-time compensation program 

7 if such individual is employed by the partici8 pating employer on a seasonal, temporary, or 

9 intermittent basis. 

10 (b) APPLICABILITY.— 

11 (1) IN GENERAL.—Payments to a State under 

12 subsection (a) shall be available for weeks of unem13 ployment— 

14 (A) beginning on or after the date of the 

15 enactment of this Act; and 

16 (B) ending on or before the date that is 3 

17 years and 6 months after the date of the enact18 ment of this Act. 

19 (2) THREE-YEAR FUNDING LIMITATION FOR

20 COMBINED PAYMENTS UNDER THIS SECTION AND

21 SECTION 1543.—States may receive payments under 

22 this section and section 1543 with respect to a total 

23 of not more than 156 weeks. 

24 (c) TWO-YEAR TRANSITION PERIOD FOR EXISTING

25 PROGRAMS.—During any period that the transition proviVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00253 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 sion under section 1541(a)(3) is applicable to a State with 

2 respect to a short-time compensation program, such State 

3 shall be eligible for payments under this section. Subject 

4 to paragraphs (1)(B) and (2) of subsection (b), if at any 

5 point after the date of the enactment of this Act the State 

6 enacts a State law providing for the payment of short7 time compensation under a short-time compensation pro8 gram that meets the definition of such a program under 

9 section 3306(v) of the Internal Revenue Code of 1986, the 

10 State shall be eligible for payments under this section 

11 after the effective date of such enactment. 

12 (d) FUNDING AND CERTIFICATIONS.— 

13 (1) FUNDING.—There are appropriated, out of 

14 moneys in the Treasury not otherwise appropriated, 

15 such sums as may be necessary for purposes of car16 rying out this section. 

17 (2) CERTIFICATIONS.—The Secretary shall 

18 from time to time certify to the Secretary of the 

19 Treasury for payment to each State the sums pay20 able to such State under this section. 

21 (e) DEFINITIONS.—In this section: 

22 (1) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Labor. 

24 (2) STATE; STATE AGENCY; STATE LAW.—The 

25 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 


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1 have the meanings given those terms in section 205 

2 of the Federal-State Extended Unemployment Com3 pensation Act of 1970 (26 U.S.C. 3304 note). 

4 SEC. 1542. TEMPORARY FINANCING OF SHORT-TIME COM5 PENSATION AGREEMENTS. 

6 (a) FEDERAL-STATE AGREEMENTS.— 

7 (1) IN GENERAL.—Any State which desires to 

8 do so may enter into, and participate in, an agree9 ment under this section with the Secretary provided 

10 that such State’s law does not provide for the pay11 ment of short-time compensation under a short-time 

12 compensation program (as defined in section 

13 3306(v) of the Internal Revenue Code of 1986). 

14 (2) ABILITY TO TERMINATE.—Any State which 

15 is a party to an agreement under this section may, 

16 upon providing 30 days’ written notice to the Sec17 retary, terminate such agreement. 

18 (b) PROVISIONS OF FEDERAL-STATE AGREEMENT.— 

19 (1) IN GENERAL.—Any agreement under this 

20 section shall provide that the State agency of the 

21 State will make payments of short-time compensa22 tion under a plan approved by the State. Such plan 

23 shall provide that payments are made in accordance 

24 with the requirements under section 3306(v) of the 

25 Internal Revenue Code of 1986. 


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1 (2) LIMITATIONS ON PLANS.— 

2 (A) GENERAL PAYMENT LIMITATIONS.—A 

3 short-time compensation plan approved by a 

4 State shall not permit the payment of short5 time compensation to an individual by the State 

6 during a benefit year in excess of 26 times the 

7 amount of regular compensation (including de8 pendents’ allowances) under the State law pay9 able to such individual for a week of total un10 employment. 

11 (B) EMPLOYER LIMITATIONS.—A short12 time compensation plan approved by a State 

13 shall not provide payments to an individual if 

14 such individual is employed by the participating 

15 employer on a seasonal, temporary, or intermit16 tent basis. 

17 (3) EMPLOYER PAYMENT OF COSTS.—Any 

18 short-time compensation plan entered into by an em19 ployer must provide that the employer will pay the 

20 State an amount equal to one-half of the amount of 

21 short-time compensation paid under such plan. Such 

22 amount shall be deposited in the State’s unemploy23 ment fund and shall not be used for purposes of cal24 culating an employer’s contribution rate under secVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00256 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 tion 3303(a)(1) of the Internal Revenue Code of 

2 1986. 

3 (c) PAYMENTS TO STATES.— 

4 (1) IN GENERAL.—There shall be paid to each 

5 State with an agreement under this section an 

6 amount equal to— 

7 (A) one-half of the amount of short-time 

8 compensation paid to individuals by the State 

9 pursuant to such agreement; and 

10 (B) any additional administrative expenses 

11 incurred by the State by reason of such agree12 ment (as determined by the Secretary). 

13 (2) TERMS OF PAYMENTS.—Payments made to 

14 a State under paragraph (1) shall be payable by way 

15 of reimbursement in such amounts as the Secretary 

16 estimates the State will be entitled to receive under 

17 this section for each calendar month, reduced or in18 creased, as the case may be, by any amount by 

19 which the Secretary finds that the Secretary’s esti20 mates for any prior calendar month were greater or 

21 less than the amounts which should have been paid 

22 to the State. Such estimates may be made on the 

23 basis of such statistical, sampling, or other method 

24 as may be agreed upon by the Secretary and the 

25 State agency of the State involved. 


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1 (3) FUNDING.—There are appropriated, out of 

2 moneys in the Treasury not otherwise appropriated, 

3 such sums as may be necessary for purposes of car4 rying out this section. 

5 (4) CERTIFICATIONS.—The Secretary shall 

6 from time to time certify to the Secretary of the 

7 Treasury for payment to each State the sums pay8 able to such State under this section. 

9 (d) APPLICABILITY.— 

10 (1) IN GENERAL.—An agreement entered into 

11 under this section shall apply to weeks of unemploy12 ment— 

13 (A) beginning on or after the date on 

14 which such agreement is entered into; and 

15 (B) ending on or before the date that is 2 

16 years and 13 weeks after the date of the enact17 ment of this Act. 

18 (2) TWO-YEAR FUNDING LIMITATION.—States 

19 may receive payments under this section with re20 spect to a total of not more than 104 weeks. 

21 (e) SPECIAL RULE.—If a State has entered into an 

22 agreement under this section and subsequently enacts a 

23 State law providing for the payment of short-time com24 pensation under a short-time compensation program that 

25 meets the definition of such a program under section 


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1 3306(v) of the Internal Revenue Code of 1986, the 

2 State— 

3 (1) shall not be eligible for payments under this 

4 section for weeks of unemployment beginning after 

5 the effective date of such State law; and 

6 (2) subject to paragraphs (1)(B) and (2) of sec7 tion 1542(b), shall be eligible to receive payments 

8 under section 1542 after the effective date of such 

9 State law. 

10 (f) DEFINITIONS.—In this section: 

11 (1) SECRETARY.—The term ‘‘Secretary’’ means 

12 the Secretary of Labor. 

13 (2) STATE; STATE AGENCY; STATE LAW.—The 

14 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 

15 have the meanings given those terms in section 205 

16 of the Federal-State Extended Unemployment Com17 pensation Act of 1970 (26 U.S.C. 3304 note). 

18 SEC. 1543. GRANTS FOR SHORT-TIME COMPENSATION PRO19 GRAMS. 

20 (a) GRANTS.— 

21 (1) FOR IMPLEMENTATION OR IMPROVED AD22 MINISTRATION.—The Secretary shall award grants 

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1 pose of implementation or improved administration 

2 of such programs. 

3 (2) FOR PROMOTION AND ENROLLMENT.—The 

4 Secretary shall award grants to States that are eligi5 ble and submit plans for a grant under paragraph 

6 (1) for such States to promote and enroll employers 

7 in short-time compensation programs (as so de8 fined). 

9 (3) ELIGIBILITY.— 

10 (A) IN GENERAL.—The Secretary shall de11 termine eligibility criteria for the grants under 

12 paragraph (1) and (2). 

13 (B) CLARIFICATION.—A State admin14 istering a short-time compensation program, in15 cluding a program being administered by a 

16 State that is participating in the transition 

17 under the provisions of sections 1541(a)(3) and 

18 1542(c), that does not meet the definition of a 

19 short-time compensation program under section 

20 3306(v) of the Internal Revenue Code of 1986, 

21 and a State with an agreement under section 

22 1543, shall not be eligible to receive a grant 

23 under this section until such time as the State 

24 law of the State provides for payments under a 


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1 short-time compensation program that meets 

2 such definition and such law. 

3 (b) AMOUNT OF GRANTS.— 

4 (1) IN GENERAL.—The maximum amount avail5 able for making grants to a State under paragraphs 

6 (1) and (2) shall be equal to the amount obtained 

7 by multiplying $700,000,000 (less the amount used 

8 by the Secretary under subsection (e)) by the same 

9 ratio as would apply under subsection (a)(2)(B) of 

10 section 903 of the Social Security Act (42 U.S.C. 

11 1103) for purposes of determining such State’s 

12 share of any excess amount (as described in sub13 section (a)(1) of such section) that would have been 

14 subject to transfer to State accounts, as of October 

15 1, 2013, under the provisions of subsection (a) of 

16 such section. 

17 (2) AMOUNT AVAILABLE FOR DIFFERENT

18 GRANTS.—Of the maximum incentive payment deter19 mined under paragraph (1) with respect to a 

20 State— 

21 (A) one-third shall be available for a grant 

22 under subsection (a)(1); and 

23 (B) two-thirds shall be available for a 

24 grant under subsection (a)(2). 

25 (c) GRANT APPLICATION AND DISBURSAL.— 


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1 (1) APPLICATION.—Any State seeking a grant 

2 under paragraph (1) or (2) of subsection (a) shall 

3 submit an application to the Secretary at such time, 

4 in such manner, and complete with such information 

5 as the Secretary may require. In no case may the 

6 Secretary award a grant under this section with re7 spect to an application that is submitted after De8 cember 31, 2014. 

9 (2) NOTICE.—The Secretary shall, within 30 

10 days after receiving a complete application, notify 

11 the State agency of the State of the Secretary’s find12 ings with respect to the requirements for a grant 

13 under paragraph (1) or (2) (or both) of subsection 

14 (a). 

15 (3) CERTIFICATION.—If the Secretary finds 

16 that the State law provisions meet the requirements 

17 for a grant under subsection (a), the Secretary shall 

18 thereupon make a certification to that effect to the 

19 Secretary of the Treasury, together with a certifi20 cation as to the amount of the grant payment to be 

21 transferred to the State account in the Unemploy22 ment Trust Fund (as established in section 904(a) 

23 of the Social Security Act (42 U.S.C. 1104(a))) pur24 suant to that finding. The Secretary of the Treasury 

25 shall make the appropriate transfer to the State acVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00262 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 count within 7 days after receiving such certifi2 cation. 

3 (4) REQUIREMENT.—No certification of compli4 ance with the requirements for a grant under para5 graph (1) or (2) of subsection (a) may be made with 

6 respect to any State whose— 

7 (A) State law is not otherwise eligible for 

8 certification under section 303 of the Social Se9 curity Act (42 U.S.C. 503) or approvable under 

10 section 3304 of the Internal Revenue Code of 

11 1986; or 

12 (B) short-time compensation program is 

13 subject to discontinuation or is not scheduled to 

14 take effect within 12 months of the certifi15 cation. 

16 (d) USE OF FUNDS.—The amount of any grant 

17 awarded under this section shall be used for the implemen18 tation of short-time compensation programs and the over19 all administration of such programs and the promotion 

20 and enrollment efforts associated with such programs, 

21 such as through— 

22 (1) the creation or support of rapid response 

23 teams to advise employers about alternatives to lay24 offs; 


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1 (2) the provision of education or assistance to 

2 employers to enable them to assess the feasibility of 

3 participating in short-time compensation programs; 

4 and 

5 (3) the development or enhancement of systems 

6 to automate— 

7 (A) the submission and approval of plans; 

8 and 

9 (B) the filing and approval of new and on10 going short-time compensation claims. 

11 (e) ADMINISTRATION.—The Secretary is authorized 

12 to use 0.25 percent of the funds available under subsection 

13 (g) to provide for outreach and to share best practices with 

14 respect to this section and short-time compensation pro15 grams. 

16 (f) RECOUPMENT.—The Secretary shall establish a 

17 process under which the Secretary shall recoup the 

18 amount of any grant awarded under paragraph (1) or (2) 

19 of subsection (a) if the Secretary determines that, during 

20 the 5-year period beginning on the first date that any such 

21 grant is awarded to the State, the State— 

22 (1) terminated the State’s short-time compensa23 tion program; or 


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1 (2) failed to meet appropriate requirements 

2 with respect to such program (as established by the 

3 Secretary). 

4 (g) FUNDING.—There are appropriated, out of mon5 eys in the Treasury not otherwise appropriated, to the 

6 Secretary, $700,000,000 to carry out this section, to re7 main available without fiscal year limitation. 

8 (h) REPORTING.—The Secretary may establish re9 porting requirements for States receiving a grant under 

10 this section in order to provide oversight of grant funds. 

11 (i) DEFINITIONS.—In this section: 

12 (1) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Labor. 

14 (2) SHORT-TIME COMPENSATION PROGRAM.— 

15 The term ‘‘short-time compensation program’’ has 

16 the meaning given such term in section 3306(v) of 

17 the Internal Revenue Code of 1986. 

18 (3) STATE; STATE AGENCY; STATE LAW.—The 

19 terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 

20 have the meanings given those terms in section 205 

21 of the Federal-State Extended Unemployment Com22 pensation Act of 1970 (26 U.S.C. 3304 note). 


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1 SEC. 1544. ASSISTANCE AND GUIDANCE IN IMPLEMENTING 

2 PROGRAMS. 

3 (a) IN GENERAL.—In order to assist States in estab4 lishing, qualifying, and implementing short-time com5 pensation programs (as defined in section 3306(v) of the 

6 Internal Revenue Code of 1986), the Secretary of Labor 

7 (in this section referred to as the ‘‘Secretary’’) shall— 

8 (1) develop model legislative language which 

9 may be used by States in developing and enacting 

10 such programs and periodically review and revise 

11 such model legislative language; 

12 (2) provide technical assistance and guidance in 

13 developing, enacting, and implementing such pro14 grams; and 

15 (3) establish reporting requirements for States, 

16 including reporting on— 

17 (A) the number of estimated averted lay18 offs; 

19 (B) the number of participating employers 

20 and workers; and 

21 (C) such other items as the Secretary of 

22 Labor determines are appropriate. 

23 (b) MODEL LANGUAGE AND GUIDANCE.—The model 

24 language and guidance developed under subsection (a) 

25 shall allow sufficient flexibility by States and participating 


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1 employers while ensuring accountability and program in2 tegrity. 

3 (c) CONSULTATION.—In developing the model legisla4 tive language and guidance under subsection (a), and in 

5 order to meet the requirements of subsection (b), the Sec6 retary shall consult with employers, labor organizations, 

7 State workforce agencies, and other program experts. 

8 SEC. 1545. REPORTS. 

9 (a) REPORTS.— 

10 (1) IN GENERAL.—Not later than 4 years after 

11 the date of the enactment of this Act, the Secretary 

12 of Labor shall submit to Congress and to the Presi13 dent a report or reports on the implementation of 

14 the provisions of this Act. 

15 (2) REQUIREMENTS.—Any report under para16 graph (1) shall at a minimum include the following: 

17 (A) A description of best practices by 

18 States and employers in the administration, 

19 promotion, and use of short-time compensation 

20 programs (as defined in section 3306(v) of the 

21 Internal Revenue Code of 1986). 

22 (B) An analysis of the significant chal23 lenges to State enactment and implementation 

24 of short-time compensation programs. 


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1 (C) A survey of employers in States that 

2 have not enacted a short-time compensation 

3 program or entered into an agreement with the 

4 Secretary on a short-time compensation plan to 

5 determine the level of interest among such em6 ployers in participating in short-time compensa7 tion programs. 

8 (b) FUNDING.—There are appropriated, out of any 

9 moneys in the Treasury not otherwise appropriated, to the 

10 Secretary of Labor, $1,500,000 to carry out this section, 

11 to remain available without fiscal year limitation. 

12 Subtitle B—Long-Term 

13 Unemployed Hiring Preferences 

14 SEC. 1551. LONG-TERM UNEMPLOYED WORKERS WORK OP15 PORTUNITY TAX CREDITS. 

16 (a) IN GENERAL.—Paragraph (3) of section 51(b) of 

17 the Internal Revenue Code is amended by inserting 

18 ‘‘$10,000 per year in the case of any individual who is 

19 a qualified long-term unemployed individual by reason of 

20 subsection (d)(11), and’’ before ‘‘$12,000 per year’’. 

21 (b) LONG-TERM UNEMPLOYED INDIVIDUALS TAX

22 CREDITS.—Subsection (d) of section 51 of the Internal 

23 Revenue Code is amended— 

24 (1) in paragraph (1), by striking ‘‘or’’ at the 

25 end of subparagraph (H), by striking the period at 


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1 the end of subparagraph (I) and inserting ‘‘, or’’, 

2 and by inserting after subparagraph (I) the fol3 lowing: 

4 ‘‘(J) a qualified long-term unemployed in5 dividual.’’, and 

6 (2) by redesignating paragraphs (11) through 

7 (14) as paragraphs (12) through (15), respectively, 

8 and by inserting after paragraph (10) the following 

9 new paragraph: 

10 ‘‘(11) QUALIFIED LONG-TERM UNEMPLOYED

11 INDIVIDUAL.— 

12 ‘‘(A) IN GENERAL.—The term ‘qualified 

13 long-term unemployed individual’ means any in14 dividual who was not a student for at least 6 

15 months during the 1-year period ending on the 

16 hiring date and is certified by the designated 

17 local agency as having aggregate periods of un18 employment during the 1-year period ending on 

19 the hiring date which equal or exceed 6 months. 

20 ‘‘(B) STUDENT.—For purposes of this sub21 section, a student is an individual enrolled at 

22 least half-time in a program that leads to a de23 gree, certificate, or other recognized educational 

24 credential for at least 6 months whether or not 


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1 consecutive during the 1-year period ending on 

2 the hiring date.’’. 

3 (c) SIMPLIFIED CERTIFICATION.—Section 51(d) of 

4 the Internal Revenue Code, as amended by subsection (b), 

5 is amended by adding at the end the following new para6 graph: 

7 ‘‘(16) CREDIT ALLOWED FOR QUALIFIED LONG8 TERM UNEMPLOYED INDIVIDUALS.— 

9 ‘‘(A) IN GENERAL.—Any qualified long10 term unemployed individual under paragraph 

11 (11) will be treated as certified by the des12 ignated local agency as having aggregate peri13 ods of unemployment if the individual is cer14 tified by the designated local agency as being in 

15 receipt of unemployment compensation under 

16 State or Federal law for not less than 6 months 

17 during the 1-year period ending on the hiring 

18 date. 

19 ‘‘(B) REGULATORY AUTHORITY.—The Sec20 retary in his discretion may provide alternative 

21 methods for certification.’’. 

22 (d) CREDIT MADE AVAILABLE TO TAX-EXEMPT EM23 PLOYERS IN CERTAIN CIRCUMSTANCES.—Section 3111(e) 

24 of the Internal Revenue Code is amended— 


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1 (1) in the heading for the subsection is amend2 ed by inserting ‘‘AND QUALIFIED LONG-TERM UN3 EMPLOYED INDIVIDUALS’’ after ‘‘QUALIFIED VET4 ERANS’’, 

5 (2) in paragraph (1) by inserting ‘‘or qualified 

6 long-term unemployed individual’’ after ‘‘qualified 

7 veteran’’, 

8 (3) in paragraph (2) by inserting ‘‘and qualified 

9 long-term unemployed individuals’’ after ‘‘qualified 

10 veterans’’, 

11 (4) in paragraph (3)(C) by inserting ‘‘and 

12 qualified long-term unemployed individual, as the 

13 case may be,’’ after ‘‘qualified veteran’’, 

14 (5) in paragraph (4) by inserting ‘‘or qualified 

15 long-term unemployed individual’’ after ‘‘qualified 

16 veteran’’ both places it appears, and 

17 (6) in paragraph (5) by striking ‘‘and’’ at the 

18 end of subparagraph (A), by striking the period at 

19 the end of subparagraph (B) and inserting ‘‘, and’’, 

20 and by adding at the end the following: 

21 ‘‘(C) the term ‘qualified long-term unem22 ployed individual’ has meaning given such term 

23 by section 51(d)(11).’’. 


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

2 this section shall apply to individuals who begin work for 

3 the employer after the date of the enactment of this Act. 

4 Subtitle C—Pathways Back to 

5 Work 

6 SEC. 1561. SHORT TITLE. 

7 This subtitle may be cited as the ‘‘Pathways Back 

8 to Work Act of 2014’’. 

9 SEC. 1562. AUTHORIZATION OF APPROPRIATIONS. 

10 There is authorized to be appropriated to the Sec11 retary of Labor $5,000,000,000 to carry out this subtitle. 

12 SEC. 1563. AVAILABILITY OF FUNDS. 

13 (a) IN GENERAL.—Of the amounts available under 

14 section 1562(b), the Secretary of Labor shall— 

15 (1) allot $2,000,000,000 in accordance with 

16 section 1564 to provide subsidized employment to 

17 unemployed, low-income adults; 

18 (2) allot $1,500,000,000 in accordance with 

19 section 1565 to provide summer and year-round em20 ployment opportunities to low-income youth; and 

21 (3) award $1,500,000,000 in competitive grants 

22 in accordance with section 1566 to local entities to 

23 carry out work-based training and other work-re24 lated and educational strategies and activities of 

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1 come adults and low-income youth to provide the 

2 skills and assistance needed to obtain employment. 

3 (b) RESERVATION.—The Secretary of Labor may re4 serve not more than 1 percent of amounts available under 

5 each of paragraphs (1) through (3) of subsection (a) for 

6 the costs of technical assistance, evaluations and Federal 

7 administration of this Act. 

8 (c) PERIOD OF AVAILABILITY.—The amounts appro9 priated under this Act shall be available for obligation by 

10 the Secretary of Labor until December 31, 2014, and shall 

11 be available for expenditure by grantees and subgrantees 

12 until September 30, 2015. 

13 SEC. 1564. SUBSIDIZED EMPLOYMENT FOR UNEMPLOYED, 

14 LOW-INCOME ADULTS. 

15 (a) IN GENERAL.— 

16 (1) ALLOTMENTS.—From the funds available 

17 under section 1563(a)(1), the Secretary of Labor 

18 shall make an allotment under subsection (b) to each 

19 State that has a State plan approved under sub20 section (c) and to each outlying area and Native 

21 American grantee under section 166 of the Work22 force Investment Act of 1998 (as in effect on the 

23 day before the date of enactment of the Workforce 

24 Innovation and Opportunity Act) that meets the re25 quirements of this section, for the purpose of proVerDate Mar 15 2010 01:55 Aug 16, 2014 Jkt 039200 PO 00000 Frm 00273 Fmt 6652 Sfmt 6201 E:\BILLS\H5352.IH H5352

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1 viding subsidized employment opportunities to unem2 ployed, low-income adults. 

3 (2) GUIDANCE.—Not later than 30 days after 

4 the date of enactment of this Act, the Secretary of 

5 Labor, in coordination with the Secretary of Health 

6 and Human Services, shall issue guidance regarding 

7 the implementation of this section. Such guidance 

8 shall, consistent with this section, include procedures 

9 for the submission and approval of State and local 

10 plans and the allotment and allocation of funds, in11 cluding reallotment and reallocation of such funds, 

12 that promote the expeditious and effective implemen13 tation of the activities authorized under this section. 

14 (b) STATE ALLOTMENTS.— 

15 (1) RESERVATIONS FOR OUTLYING AREAS AND

16 TRIBES.—Of the funds described subsection (a)(1), 

17 the Secretary shall reserve— 

18 (A) not more than one-quarter of 1 percent 

19 to provide assistance to outlying areas to pro20 vide subsidized employment to low-income 

21 adults who are unemployed; and 

22 (B) 1.5 percent to provide assistance to 

23 grantees of the Native American programs 

24 under section 166 of the Workforce Investment 

25 Act of 1998 (as in effect on the day before the 


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1 date of enactment of the Workforce Innovation 

2 and Opportunity Act) to provide subsidized em3 ployment to low-income adults who are unem4 ployed. 

5 (2) STATES.—After determining the amounts to 

6 be reserved under paragraph (1), the Secretary of 

7 Labor shall allot the remainder of the amounts de8 scribed in subsection (a)(1) among the States as fol9 lows— 

10 (A) one-third shall be allotted on the basis 

11 of the relative number of unemployed individ12 uals in areas of substantial unemployment in 

13 each State, compared to the total number of 

14 unemployed individuals in areas of substantial 

15 unemployment in all States; 

16 (B) one-third shall be allotted on the basis 

17 of the relative excess number of unemployed in18 dividuals in each State, compared to the total 

19 excess number of unemployed individuals in all 

20 States; and 

21 (C) one-third shall be allotted on the basis 

22 of the relative number of disadvantaged adults 

23 and youth in each State, compared to the total 

24 number of disadvantaged adults and youth in 

25 all States. 


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1 (3) DEFINITIONS.—For purposes of the for2 mula described in paragraph (2)— 

3 (A) AREA OF SUBSTANTIAL UNEMPLOY4 MENT.—The term ‘‘area of substantial unem5 ployment’’ means any contiguous area with a 

6 population of at least 10,000 and that has an 

7 average rate of unemployment of at least 6.5 

8 percent for the most recent 12 months, as de9 termined by the Secretary. 

10 (B) DISADVANTAGED ADULTS AND

11 YOUTH.—The term ‘‘disadvantaged adults and 

12 youth’’ means an individual who is age 16 and 

13 older (subject to section 132(b)(1)(B)(v)(I) of 

14 the Workforce Investment Act of 1998) who re15 ceived an income, or is a member of a family 

16 that received a total family income, that, in re17 lation to family size, does not exceed the higher 

18 of— 

19 (i) the poverty line; or 

20 (ii) 70 percent of the lower living 

21 standard income level. 

22 (C) EXCESS NUMBER.—The term ‘‘excess 

23 number’’ means, used with respect to the excess 

24 number of unemployed individuals within a 

25 State, the higher of— 


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1 (i) the number that represents the 

2 number of unemployed individuals in ex3 cess of 4.5 percent of the civilian labor 

4 force in the State; or 

5 (ii) the number that represents the 

6 number of unemployed individuals in ex7 cess of 4.5 percent of the civilian labor 

8 force in areas of substantial unemployment 

9 in such State. 

10 (4) REALLOTMENT.—If the Governor of a State 

11 does not submit a State plan by the time specified 

12 in subsection (c), or a State does not receive ap13 proval of a State plan, the amount the State would 

14 have been eligible to receive pursuant to the formula 

15 under paragraph (2) shall be added to the amounts 

16 available for the competitive grants under section 

17 1563(a)(3). 

18 (c) STATE PLAN.— 

19 (1) IN GENERAL.—For a State to be eligible to 

20 receive an allotment of the funds under subsection 

21 (b), the Governor of the State shall submit to the 

22 Secretary of Labor a State plan in such form and 

23 containing such information as the Secretary may 

24 require. At a minimum, such plan shall include— 


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1 (A) a description of the strategies and ac2 tivities to be carried out by the State, in coordi3 nation with employers in the State, to provide 

4 subsidized employment opportunities to unem5 ployed, low-income adults, including strategies 

6 relating to the level and duration of subsidies 

7 consistent with subsection (e)(2); 

8 (B) a description of the requirements the 

9 State will apply relating to the eligibility of un10 employed, low-income adults, consistent with 

11 section 1568(6), for subsidized employment op12 portunities, which may include criteria to target 

13 assistance to particular categories of such 

14 adults, such as individuals with disabilities or 

15 individuals who have exhausted all rights to un16 employment compensation; 

17 (C) a description of how the funds allotted 

18 to provide subsidized employment opportunities 

19 will be administered in the State and local 

20 areas, in accordance with subsection (d); 

21 (D) a description of the performance out22 comes to be achieved by the State through the 

23 activities carried out under this section and the 

24 processes the State will use to track perform25 ance, consistent with guidance provided by the 


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1 Secretary of Labor regarding such outcomes 

2 and processes and with section 1567(b); 

3 (E) a description of the coordination of ac4 tivities to be carried out with the funds pro5 vided under this section with activities under 

6 title I of the Workforce Investment Act of 1998 

7 (as in effect on the day before the date of en8 actment of the Workforce Innovation and Op9 portunity Act), the TANF program under part 

10 A of title IV of the Social Security Act, and 

11 other appropriate Federal and State programs 

12 that may assist unemployed, low-income adults 

13 in obtaining and retaining employment; 

14 (F) a description of the timelines for im15 plementation of the activities described in sub16 paragraph (A), and the number of unemployed, 

17 low-income adults expected to be placed in sub18 sidized employment by quarter; 

19 (G) assurances that the State will report 

20 such information as the Secretary of Labor may 

21 require relating to fiscal, performance and other 

22 matters that the Secretary determines is nec23 essary to effectively monitor the activities car24 ried out under this section; and 


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1 (H) assurances that the State will ensure 

2 compliance with the labor standards and protec3 tions described in section 1567(a) of this Act. 

4 (2) SUBMISSION AND APPROVAL OF STATE

5 PLAN.— 

6 (A) SUBMISSION WITH OTHER PLANS.— 

7 The State plan described in this subsection may 

8 be submitted in conjunction with the State plan 

9 modification or request for funds required 

10 under section 1565, and may be submitted as 

11 a modification to a State plan that has been ap12 proved under section 112 of the Workforce In13 vestment Act of 1998. 

14 (B) SUBMISSION AND APPROVAL.— 

15 (i) SUBMISSION.—The Governor shall 

16 submit a plan to the Secretary of Labor 

17 not later than 75 days after the enactment 

18 of this Act and the Secretary of Labor 

19 shall make a determination regarding the 

20 approval or disapproval of such plans not 

21 later than 45 days after the submission of 

22 such plan. If the plan is disapproved, the 

23 Secretary of Labor may provide a reason24 able period of time in which a disapproved 


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1 plan may be amended and resubmitted for 

2 approval. 

3 (ii) APPROVAL.—The Secretary of 

4 Labor shall approve a State plan that the 

5 Secretary determines is consistent with re6 quirements of this section and reasonably 

7 appropriate and adequate to carry out the 

8 purposes of this section. If the plan is ap9 proved, the Secretary shall allot funds to 

10 States within 30 days after such approval. 

11 (3) MODIFICATIONS TO STATE PLAN.—The 

12 Governor may submit a modification to a State plan 

13 under this subsection consistent with the require14 ments of this section. 

15 (d) ADMINISTRATION WITHIN THE STATE.— 

16 (1) OPTION.—The State may administer the 

17 funds for activities under this section through— 

18 (A) the State and local entities responsible 

19 for the administration of the adult formula pro20 gram under subtitle B of title I of the Work21 force Investment Act of 1998 (as in effect on 

22 the day before the date of enactment of the 

23 Workforce Innovation and Opportunity Act); 


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1 (B) the entities responsible for the admin2 istration of the TANF program under part A of 

3 title IV of the Social Security Act; or 

4 (C) a combination of the entities described 

5 in subparagraphs (A) and (B). 

6 (2) WITHIN-STATE ALLOCATIONS.— 

7 (A) ALLOCATION OF FUNDS.—The Gov8 ernor may reserve up to 5 percent of the allot9 ment under subsection (b)(2) for administration 

10 and technical assistance, and shall allocate the 

11 remainder, in accordance with the option elect12 ed under paragraph (1)— 

13 (i) among local workforce investment 

14 areas within the State in accordance with 

15 the factors identified in subsection (b)(2), 

16 except that for purposes of such allocation 

17 references to a State in such paragraph 

18 shall be deemed to be references to a local 

19 workforce investment area and references 

20 to all States shall be deemed to be ref21 erences to all local areas in the State in22 volved, of which not more than 10 percent 

23 of the funds allocated to a local workforce 

24 investment area may be used for the costs 

25 of administration of this section; or 


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1 (ii) through entities responsible for 

2 the administration of the TANF program 

3 under part A of title IV of the Social Secu4 rity Act in local areas in such manner as 

5 the State may determine appropriate. 

6 (B) LOCAL PLANS.— 

7 (i) IN GENERAL.—In the case where 

8 the responsibility for the administration of 

9 activities is to be carried out by the enti10 ties described under paragraph (1)(A), in 

11 order to receive an allocation under sub12 paragraph (A)(i), a local workforce invest13 ment board, in partnership with the chief 

14 elected official of the local workforce in15 vestment area involved, shall submit to the 

16 Governor a local plan for the use of such 

17 funds under this section not later than 30 

18 days after the submission of the State 

19 plan. Such local plan may be submitted as 

20 a modification to a local plan approved 

21 under section 118 of the Workforce Invest22 ment Act of 1998 (as in effect on the day 

23 before the date of enactment of the Work24 force Innovation and Opportunity Act). 


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1 (ii) CONTENTS.—The local plan de2 scribed in clause (i) shall contain the ele3 ments described in subparagraphs (A)–(H) 

4 of subsection (c)(1), as applied to the local 

5 workforce investment area. 

6 (iii) APPROVAL.—The Governor shall 

7 approve or disapprove the local plan sub8 mitted under clause (i) within 30 days 

9 after submission, or if later, 30 days after 

10 the approval of the State plan. The Gov11 ernor shall approve the plan unless the 

12 Governor determines that the plan is in13 consistent with requirements of this section 

14 or is not reasonably appropriate and ade15 quate to carry out the purposes of this sec16 tion. If the Governor has not made a de17 termination within the period specified 

18 under the first sentence of this clause, the 

19 plan shall be considered approved. If the 

20 plan is disapproved, the Governor may pro21 vide a reasonable period of time in which 

22 a disapproved plan may be amended and 

23 resubmitted for approval. The Governor 

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1 vestment areas with approved plans within 

2 30 days after such approval. 

3 (C) REALLOCATION OF FUNDS TO LOCAL

4 AREAS.—If a local workforce investment board 

5 does not submit a local plan by the time speci6 fied in subparagraph (B) or the Governor does 

7 not approve a local plan, the amount the local 

8 workforce investment area would have been eli9 gible to receive pursuant to the formula under 

10 subparagraph (A)(i) shall be allocated to local 

11 workforce investment areas that receive ap12 proval of the local plan under subparagraph 

13 (B). Such reallocations shall be made in accord14 ance with the relative share of the allocations to 

15 such local workforce investment areas applying 

16 the formula factors described under subpara17 graph (A)(i). 

18 (e) USE OF FUNDS.— 

19 (1) IN GENERAL.—The funds under this section 

20 shall be used to provide subsidized employment for 

21 unemployed, low-income adults. The State and local 

22 entities described in subsection (d)(1) may use a va23 riety of strategies in recruiting employers and identi24 fying appropriate employment opportunities, with a 

25 priority to be provided to employment opportunities 


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1 likely to lead to unsubsidized employment in emerg2 ing or in-demand occupations in the local area. 

3 Funds under this section may be used to provide 

4 support services, such as transportation and child 

5 care, that are necessary to enable the participation 

6 of individuals in subsidized employment opportuni7 ties. 

8 (2) LEVEL OF SUBSIDY AND DURATION.—The 

9 States or local entities described in subsection (d)(1) 

10 may determine the percentage of the wages and 

11 costs of employing a participant for which an em12 ployer may receive a subsidy with the funds provided 

13 under this section, and the duration of such subsidy, 

14 in accordance with guidance issued by the Secretary. 

15 The State or local entities may establish criteria for 

16 determining such percentage or duration using ap17 propriate factors such as the size of the employer 

18 and types of employment. 

19 (f) COORDINATION OF FEDERAL ADMINISTRATION.— 

20 The Secretary of Labor shall administer this section in 

21 coordination with the Secretary of Health and Human 

22 Services to ensure the effective implementation of this sec23 tion. 


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1 SEC. 1565. SUMMER EMPLOYMENT AND YEAR-ROUND EM2 PLOYMENT OPPORTUNITIES FOR LOW-IN3 COME YOUTH. 

4 (a) IN GENERAL.—From the funds available under 

5 section 1563(a)(2), the Secretary of Labor shall make an 

6 allotment under subsection (c) to each State that has a 

7 State plan modification (or other form of request for funds 

8 specified in guidance under subsection (b)) approved 

9 under subsection (d) and to each outlying area and Native 

10 American grantee under section 166 of the Workforce In11 vestment Act of 1998 (as in effect on the day before the 

12 date of enactment of the Workforce Innovation and Op13 portunity Act) that meets the requirements of this section, 

14 for the purpose of providing summer employment and 

15 year-round employment opportunities to low-income 

16 youth. 

17 (b) GUIDANCE AND APPLICATION OF REQUIRE18 MENTS.— 

19 (1) GUIDANCE.—Not later than 20 days after 

20 the date of enactment of this Act, the Secretary of 

21 Labor shall issue guidance regarding the implemen22 tation of this section. Such guidance shall, consistent 

23 with this section, include procedures for the submis24 sion and approval of State plan modifications, or for 

25 forms of requests for funds by the State as may be 

26 identified in such guidance, local plan modifications, 


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1 or other forms of requests for funds from local work2 force investment areas as may be identified in such 

3 guidance, and the allotment and allocation of funds, 

4 including reallotment and reallocation of such funds, 

5 that promote the expeditious and effective implemen6 tation of the activities authorized under this section. 

7 (2) REQUIREMENTS.—Except as otherwise pro8 vided in the guidance described in paragraph (1) 

9 and in this section and other provisions of this Act, 

10 the funds provided for activities under this section 

11 shall be administered in accordance with subtitles B 

12 and E of title I of the Workforce Investment Act of 

13 1998 (as in effect on the day before the date of en14 actment of the Workforce Innovation and Oppor15 tunity Act) relating to youth activities. 

16 (c) STATE ALLOTMENTS.— 

17 (1) RESERVATIONS FOR OUTLYING AREAS AND

18 TRIBES.—Of the funds described subsection (a), the 

19 Secretary shall reserve— 

20 (A) not more than one-quarter of 1 percent 

21 to provide assistance to outlying areas to pro22 vide summer and year-round employment op23 portunities to low-income youth; and 

24 (B) 1.5 percent to provide assistance to 

25 grantees of the Native American programs 


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1 under section 166 of the Workforce Investment 

2 Act of 1998 (as in effect on the day before the 

3 date of enactment of the Workforce Innovation 

4 and Opportunity Act) to provide summer and 

5 year-round employment opportunities to low-in6 come youth. 

7 (2) STATES.—After determining the amounts to 

8 be reserved under paragraph (1), the Secretary of 

9 Labor shall allot the remainder of the amounts de10 scribed in subsection (a) among the States in ac11 cordance with the factors described in section 

12 1564(b)(2) of this Act. 

13 (3) REALLOTMENT.—If the Governor of a State 

14 does not submit a State plan modification or other 

15 request for funds specified in guidance under sub16 section (b) by the time specified in subsection 

17 (d)(2)(B), or a State does not receive approval of 

18 such State plan modification or request, the amount 

19 the State would have been eligible to receive pursu20 ant to the formula under paragraph (2) shall be 

21 added to the amounts available for the competitive 

22 grants under section 1563(a)(3). 

23 (d) STATE PLAN MODIFICATION.— 

24 (1) IN GENERAL.—For a State to be eligible to 

25 receive an allotment of the funds under subsection 


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1 (c), the Governor of the State shall submit to the 

2 Secretary of Labor a modification to a State plan 

3 approved under section 112 of the Workforce Invest4 ment Act of 1998 (as in effect on the day before the 

5 date of enactment of the Workforce Innovation and 

6 Opportunity Act), or other request for funds de7 scribed in guidance in subsection (b), in such form 

8 and containing such information as the Secretary 

9 may require. At a minimum, such plan modification 

10 or request shall include— 

11 (A) a description of the strategies and ac12 tivities to be carried out to provide summer em13 ployment opportunities and year-round employ14 ment opportunities, including the linkages to 

15 educational activities, consistent with subsection 

16 (f); 

17 (B) a description of the requirements the 

18 States will apply relating to the eligibility of 

19 low-income youth, consistent with section 

20 1568(4), for summer employment opportunities 

21 and year-round employment opportunities, 

22 which may include criteria to target assistance 

23 to particular categories of such low-income 

24 youth, such as youth with disabilities, con25 sistent with subsection (f); 


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1 (C) a description of the performance out2 comes to be achieved by the State through the 

3 activities carried out under this section and the 

4 processes the State will use to track perform5 ance, consistent with guidance provided by the 

6 Secretary of Labor regarding such outcomes 

7 and processes and with section 1567(b); 

8 (D) a description of the timelines for im9 plementation of the activities described in sub10 paragraph (A), and the number of low-income 

11 youth expected to be placed in summer employ12 ment opportunities, and year-round employment 

13 opportunities, respectively, by quarter; 

14 (E) assurances that the State will report 

15 such information as the Secretary may require 

16 relating to fiscal, performance and other mat17 ters that the Secretary determines is necessary 

18 to effectively monitor the activities carried out 

19 under this section; and 

20 (F) assurances that the State will ensure 

21 compliance with the labor standards protections 

22 described in section 1567(a). 

23 (2) SUBMISSION AND APPROVAL OF STATE

24 PLAN MODIFICATION OR REQUEST.— 


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1 (A) SUBMISSION.—The Governor shall 

2 submit a modification of the State plan or other 

3 request for funds described in guidance in sub4 section (b) to the Secretary of Labor not later 

5 than 30 days after the issuance of such guid6 ance. The State plan modification or request for 

7 funds required under this subsection may be 

8 submitted in conjunction with the State plan re9 quired under section 1564. 

10 (B) APPROVAL.—The Secretary of Labor 

11 shall approve the plan or request submitted 

12 under subparagraph (A) within 30 days after 

13 submission, unless the Secretary determines 

14 that the plan or request is inconsistent with the 

15 requirements of this section. If the Secretary 

16 has not made a determination within 30 days, 

17 the plan or request shall be considered ap18 proved. If the plan or request is disapproved, 

19 the Secretary may provide a reasonable period 

20 of time in which a disapproved plan or request 

21 may be amended and resubmitted for approval. 

22 If the plan or request is approved, the Sec23 retary shall allot funds to States within 30 days 

24 after such approval. 


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1 (3) MODIFICATIONS TO STATE PLAN OR RE2 QUEST.—The Governor may submit further modi3 fications to a State plan or request for funds identi4 fied under subsection (b) to carry out this section in 

5 accordance with the requirements of this section. 

6 (e) WITHIN-STATE ALLOCATION AND ADMINISTRA7 TION.— 

8 (1) IN GENERAL.—Of the funds allotted to the 

9 State under subsection (c), the Governor— 

10 (A) may reserve up to 5 percent of the al11 lotment for administration and technical assist12 ance; and 

13 (B) shall allocate the remainder of the al14 lotment among local workforce investment areas 

15 within the State in accordance with the factors 

16 identified in section 1564(b)(2), except that for 

17 purposes of such allocation references to a 

18 State in such paragraph shall be deemed to be 

19 references to a local workforce investment area 

20 and references to all States shall be deemed to 

21 be references to all local areas in the State in22 volved. Not more than 10 percent of the funds 

23 allocated to a local workforce investment area 

24 may be used for the costs of administration of 

25 this section. 


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1 (2) LOCAL PLAN.— 

2 (A) SUBMISSION.—In order to receive an 

3 allocation under paragraph (1)(B), the local 

4 workforce investment board, in partnership with 

5 the chief elected official for the local workforce 

6 investment area involved, shall submit to the 

7 Governor a modification to a local plan ap8 proved under section 118 of the Workforce In9 vestment Act of 1998 (as in effect on the day 

10 before the date of enactment of the Workforce 

11 Innovation and Opportunity Act), or other form 

12 of request for funds as may be identified in the 

13 guidance issued under subsection (b), not later 

14 than 30 days after the submission by the State 

15 of the modification to the State plan or other 

16 request for funds identified in subsection (b), 

17 describing the strategies and activities to be 

18 carried out under this section. 

19 (B) APPROVAL.—The Governor shall ap20 prove the local plan submitted under subpara21 graph (A) within 30 days after submission, un22 less the Governor determines that the plan is 

23 inconsistent with requirements of this section. 

24 If the Governor has not made a determination 

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1 proved. If the plan is disapproved, the Governor 

2 may provide a reasonable period of time in 

3 which a disapproved plan may be amended and 

4 resubmitted for approval. The Governor shall 

5 allocate funds to local workforce investment 

6 areas with approved plans within 30 days after 

7 approval. 

8 (3) REALLOCATION.—If a local workforce in9 vestment board does not submit a local plan modi10 fication (or other request for funds identified in 

11 guidance under subsection (b)) by the time specified 

12 in paragraph (2), or does not receive approval of a 

13 local plan, the amount the local workforce invest14 ment area would have been eligible to receive pursu15 ant to the formula under paragraph (1)(B) shall be 

16 allocated to local workforce investment areas that re17 ceive approval of the local plan modification or re18 quest for funds under paragraph (2). Such realloca19 tions shall be made in accordance with the relative 

20 share of the allocations to such local workforce in21 vestment areas applying the formula factors de22 scribed under paragraph (1)(B). 

23 (f) USE OF FUNDS.— 

24 (1) IN GENERAL.—The funds provided under 

25 this section shall be used— 


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1 (A) to provide summer employment oppor2 tunities for low-income youth, ages 16 through 

3 24, with direct linkages to academic and occu4 pational learning, and may include the provision 

5 of supportive services, such as transportation or 

6 child care, necessary to enable such youth to 

7 participate; and 

8 (B) to provide year-round employment op9 portunities, which may be combined with other 

10 activities authorized under section 129 of the 

11 Workforce Investment Act of 1998 (as in effect 

12 on the day before the date of enactment of the 

13 Workforce Innovation and Opportunity Act), to 

14 low-income youth, ages 16 through 24, with a 

15 priority to out-of school youth who are— 

16 (i) high school dropouts; or 

17 (ii) recipients of a secondary school 

18 diploma or its equivalent but who are basic 

19 skills deficient unemployed or under20 employed. 

21 (2) PROGRAM PRIORITIES.—In administering 

22 the funds under this section, the local board and 

23 local chief elected officials shall give a priority to— 

24 (A) identifying employment opportunities 

25 that are— 


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1 (i) in emerging or in-demand occupa2 tions in the local workforce investment 

3 area; or 

4 (ii) in the public or nonprofit sector 

5 that meet community needs; and 

6 (B) linking year-round program partici7 pants to training and educational activities that 

8 will provide such participants an industry-recog9 nized certificate or credential. 

10 (3) PERFORMANCE ACCOUNTABILITY.—For ac11 tivities funded under this section, in lieu of the re12 quirements described in section 136 of the Work13 force Investment Act of 1998 (as in effect on the 

14 day before the date of enactment of the Workforce 

15 Innovation and Opportunity Act), State and local 

16 workforce investment areas shall provide such re17 ports as the Secretary of Labor may require regard18 ing the performance outcomes described in section 

19 1567(a)(5). 

20 SEC. 1566. WORK-BASED EMPLOYMENT STRATEGIES OF 

21 DEMONSTRATED EFFECTIVENESS. 

22 (a) IN GENERAL.—From the funds available under 

23 section 1563(a)(3), the Secretary of Labor shall award 

24 grants on a competitive basis to eligible entities to carry 

25 out work-based strategies of demonstrated effectiveness. 


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1 (b) USE OF FUNDS.—The grants awarded under this 

2 section shall be used to support strategies and activities 

3 of demonstrated effectiveness that are designed to provide 

4 unemployed, low-income adults or low-income youth with 

5 the skills that will lead to employment as part of or upon 

6 completion of participation in such activities. Such strate7 gies and activities may include— 

8 (1) on-the-job training, registered apprentice9 ship programs, or other programs that combine work 

10 with skills development; 

11 (2) sector-based training programs that have 

12 been designed to meet the specific requirements of 

13 an employer or group of employers in that sector 

14 and where employers are committed to hiring indi15 viduals upon successful completion of the training; 

16 (3) training that supports an industry sector or 

17 an employer-based or labor-management committee 

18 industry partnership which includes a significant 

19 work-experience component; 

20 (4) acquisition of industry-recognized creden21 tials in a field identified by the State or local work22 force investment area as a growth sector or demand 

23 industry in which there are likely to be significant 

24 job opportunities in the short term; 


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1 (5) connections to immediate work opportuni2 ties, including subsidized employment opportunities, 

3 or summer employment opportunities for youth, that 

4 includes concurrent skills training and other sup5 ports; 

6 (6) career academies that provide students with 

7 the academic preparation and training, including 

8 paid internships and concurrent enrollment in com9 munity colleges or other postsecondary institutions, 

10 needed to pursue a career pathway that leads to 

11 postsecondary credentials and high-demand jobs; 

12 and 

13 (7) adult basic education and integrated basic 

14 education and training models for low-skilled adults, 

15 hosted at community colleges or at other sites, to 

16 prepare individuals for jobs that are in demand in 

17 a local area. 

18 (c) ELIGIBLE ENTITY.—An eligible entity shall in19 clude a local chief elected official, in collaboration with the 

20 local workforce investment board for the local workforce 

21 investment area involved (which may include a partnership 

22 with of such officials and boards in the region and in the 

23 State), or an entity eligible to apply for an Indian and 

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1 fore the date of enactment of the Workforce Innovation 

2 and Opportunity Act), and may include, in partnership 

3 with such officials, boards, and entities, the following— 

4 (1) employers or employer associations; 

5 (2) adult education providers and postsecondary 

6 educational institutions, including community col7 leges; 

8 (3) community-based organizations; 

9 (4) joint labor-management committees; 

10 (5) work-related intermediaries; or 

11 (6) other appropriate organizations. 

12 (d) APPLICATION.—An eligible entity seeking to re13 ceive a grant under this section shall submit to the Sec14 retary of Labor an application at such time, in such man15 ner, and containing such information as the Secretary may 

16 require. At a minimum, the application shall— 

17 (1) describe the strategies and activities of dem18 onstrated effectiveness that the eligible entities will 

19 carry out to provide unemployed, low-income adults 

20 and low-income youth with the skills that will lead 

21 to employment upon completion of participation in 

22 such activities; 

23 (2) describe the requirements that will apply re24 lating to the eligibility of unemployed, low-income 

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1 graphs (4) and (6) of section 1568, for activities 

2 carried out under this section, which may include 

3 criteria to target assistance to particular categories 

4 of such adults and youth, such as individuals with 

5 disabilities or individuals who have exhausted all 

6 rights to unemployment compensation; 

7 (3) describe how the strategies and activities 

8 address the needs of the target populations identi9 fied in paragraph (2) and the needs of employers in 

10 the local area; 

11 (4) describe the expected outcomes to be 

12 achieved by implementing the strategies and activi13 ties; 

14 (5) provide evidence that the funds provided 

15 may be expended expeditiously and efficiently to im16 plement the strategies and activities; 

17 (6) describe how the strategies and activities 

18 will be coordinated with other Federal, State and 

19 local programs providing employment, education and 

20 supportive activities; 

21 (7) provide evidence of employer commitment to 

22 participate in the activities funded under this sec23 tion, including identification of anticipated occupa24 tional and skill needs; 


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1 (8) provide assurances that the grant recipient 

2 will report such information as the Secretary may 

3 require relating to fiscal, performance and other 

4 matters that the Secretary determines is necessary 

5 to effectively monitor the activities carried out under 

6 this section; and 

7 (9) provide assurances that the use of the funds 

8 provided under this section will comply with the 

9 labor standards and protections described section 

10 1567(a). 

11 (e) PRIORITY IN AWARDS.—In awarding grants 

12 under this section, the Secretary of Labor shall give a pri13 ority to applications submitted by eligible entities from 

14 areas of high poverty and high unemployment, as defined 

15 by the Secretary, such as Public Use Microdata Areas 

16 (PUMAs) as designated by the Census Bureau. 

17 (f) COORDINATION OF FEDERAL ADMINISTRATION.— 

18 The Secretary of Labor shall administer this section in 

19 coordination with the Secretary of Education, Secretary 

20 of Health and Human Services, and other appropriate 

21 agency heads, to ensure the effective implementation of 

22 this section. 

23 SEC. 1567. GENERAL REQUIREMENTS. 

24 (a) LABOR STANDARDS AND PROTECTIONS.—Activi25 ties provided with funds under this Act shall be subject 


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1 to the requirements and restrictions, including the labor 

2 standards, described in section 181 of the Workforce In3 vestment Act of 1998 (as in effect on the day before the 

4 date of enactment of the Workforce Innovation and Op5 portunity Act) and the nondiscrimination provisions of 

6 section 188 of such Act, in addition to other applicable 

7 Federal laws. 

8 (b) REPORTING.—The Secretary may require the re9 porting of information relating to fiscal, performance and 

10 other matters that the Secretary determines is necessary 

11 to effectively monitor the activities carried out with funds 

12 provided under this Act. At a minimum, grantees and sub13 grantees shall provide information relating to— 

14 (1) the number individuals participating in ac15 tivities with funds provided under this Act and the 

16 number of such individuals who have completed such 

17 participation; 

18 (2) the expenditures of funds provided under 

19 the Act; 

20 (3) the number of jobs created pursuant to the 

21 activities carried out under this Act; 

22 (4) the demographic characteristics of individ23 uals participating in activities under this Act; and 

24 (5) the performance outcomes of individuals 

25 participating in activities under this Act, including— 


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1 (A) for adults participating in activities 

2 funded under section 1564 of this Act— 

3 (i) entry in unsubsidized employment, 

4 (ii) retention in unsubsidized employ5 ment, and 

6 (iii) earnings in unsubsidized employ7 ment; 

8 (B) for low-income youth participating in 

9 summer employment activities under sections 

10 1565 and 1566— 

11 (i) work readiness skill attainment 

12 using an employer validated checklist; and 

13 (ii) placement in or return to sec14 ondary or postsecondary education or 

15 training, or entry into unsubsidized em16 ployment; 

17 (C) for low-income youth participating in 

18 year-round employment activities under section 

19 1565 or in activities under section 1566— 

20 (i) placement in or return to post-sec21 ondary education; 

22 (ii) attainment of high school diploma 

23 or its equivalent; 

24 (iii) attainment of an industry-recog25 nized credential; and 


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1 (iv) entry into unsubsidized employ2 ment, retention, and earnings as described 

3 in subparagraph (A); and 

4 (D) for unemployed, low-income adults 

5 participating in activities under section 1566— 

6 (i) entry into unsubsidized employ7 ment, retention, and earnings as described 

8 in subparagraph (A); and 

9 (ii) the attainment of industry-recog10 nized credentials. 

11 (c) ACTIVITIES REQUIRED TO BE ADDITIONAL.— 

12 Funds provided under this Act shall only be used for ac13 tivities that are in addition to activities that would other14 wise be available in the State or local area in the absence 

15 of such funds. 

16 (d) ADDITIONAL REQUIREMENTS.—The Secretary of 

17 Labor may establish such additional requirements as the 

18 Secretary determines may be necessary to ensure fiscal in19 tegrity, effective monitoring, and the appropriate and 

20 prompt implementation of the activities under this Act. 

21 (e) REPORT OF INFORMATION AND EVALUATIONS TO

22 CONGRESS AND THE PUBLIC.—The Secretary of Labor 

23 shall provide to the appropriate Committees of the Con24 gress and make available to the public the information re25 ported pursuant to subsection (b) and the evaluations of 


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1 activities carried out pursuant to the funds reserved under 

2 section 1563(b). 

3 SEC. 1568. DEFINITIONS. 

4 In this subtitle: 

5 (1) LOCAL CHIEF ELECTED OFFICIAL.—The 

6 term ‘‘local chief elected official’’ means the chief 

7 elected executive officer of a unit of local govern8 ment in a local workforce investment area or in the 

9 case where more than one unit of general govern10 ment, the individuals designated under an agreement 

11 described in section 117(c)(1)(B) of the Workforce 

12 Investment Act of 1998 (as in effect on the day be13 fore the date of enactment of the Workforce Innova14 tion and Opportunity Act). 

15 (2) LOCAL WORKFORCE INVESTMENT AREA.— 

16 The term ‘‘local workforce investment area’’ means 

17 such area designated under section 116 of the Work18 force Investment Act of 1998 (as in effect on the 

19 day before the date of enactment of the Workforce 

20 Innovation and Opportunity Act). 

21 (3) LOCAL WORKFORCE INVESTMENT BOARD.— 

22 The term ‘‘local workforce investment board’’ means 

23 such board established under section 117 of the 

24 Workforce Investment Act of 1998 (as in effect on 


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1 the day before the date of enactment of the Work2 force Innovation and Opportunity Act). 

3 (4) LOW-INCOME YOUTH.—The term ‘‘low-in4 come youth’’ means an individual who— 

5 (A) is aged 16 through 24; 

6 (B) meets the definition of a low-income 

7 individual provided in section 101(25) of the 

8 Workforce Investment Act of 1998 (as in effect 

9 on the day before the date of enactment of the 

10 Workforce Innovation and Opportunity Act), 

11 except that States, local workforce investment 

12 areas under section 1565 and eligible entities 

13 under section 1566(c), subject to approval in 

14 the applicable State plans, local plans, and ap15 plications for funds, may increase the income 

16 level specified in subparagraph (B)(i) of such 

17 section to an amount not in excess of 200 per18 cent of the poverty line for purposes of deter19 mining eligibility for participation in activities 

20 under sections 1565 and 1566 of this Act; and 

21 (C) is in one or more of the categories 

22 specified in section 101(13)(C) of the Work23 force Investment Act of 1998, as in effect on 

24 the day before the date of enactment of the 

25 Workforce Innovation and Opportunity Act. 


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1 (5) OUTLYING AREA.—The term ‘‘outlying 

2 area’’ means the United States Virgin Islands, 

3 Guam, American Samoa, the Commonwealth of the 

4 Northern Mariana Islands, and the Republic of 

5 Palau. 

6 (6) UNEMPLOYED, LOW-INCOME ADULT.—The 

7 term ‘‘unemployed, low-income adult’’ means an in8 dividual who— 

9 (A) is age 18 or older; 

10 (B) is without employment and is seeking 

11 assistance under this subtitle to obtain employ12 ment; and 

13 (C) meets the definition of a ‘‘low-income 

14 individual’’ under section 101(25) of the Work15 force Investment Act of 1998 (as in effect on 

16 the day before the date of enactment of the 

17 Workforce Innovation and Opportunity Act), 

18 except that for that States, local entities de19 scribed in section 1564(d)(1) and eligible enti20 ties under section 1566(c), subject to approval 

21 in the applicable State plans, local plans, and 

22 applications for funds, may increase the income 

23 level specified in subparagraph (B)(i) of such 

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1 mining eligibility for participation in activities 

2 under sections 1564 and 1566 of this Act. 

3 (7) STATE.—The term ‘‘State’’ means each of 

4 the several States of the United States, the District 

5 of Columbia, and Puerto Rico. 

6 Subtitle D—Prohibition of Dis7 crimination in Employment on 

8 the Basis of an Individual’s Sta9 tus as Unemployed 

10 SEC. 1571. SHORT TITLE. 

11 This subtitle may be cited as the ‘‘Fair Employment 

12 Opportunity Act of 2014’’. 

13 SEC. 1572. FINDINGS AND PURPOSE. 

14 (a) FINDINGS.—Congress finds that denial of em15 ployment opportunities to individuals because of their sta16 tus as unemployed is discriminatory and burdens com17 merce by— 

18 (1) reducing personal consumption and under19 mining economic stability and growth; 

20 (2) squandering human capital essential to the 

21 Nation’s economic vibrancy and growth; 

22 (3) increasing demands for Federal and State 

23 unemployment insurance benefits, reducing trust 

24 fund assets, and leading to higher payroll taxes for 


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1 employers, cuts in benefits for jobless workers, or 

2 both; 

3 (4) imposing additional burdens on publicly 

4 funded health and welfare programs; and 

5 (5) depressing income, property, and other tax 

6 revenues that the Federal Government, States, and 

7 localities rely on to support operations and institu8 tions essential to commerce. 

9 (b) PURPOSES.—The purposes of this subtitle are— 

10 (1) to prohibit employers and employment agen11 cies from disqualifying an individual from employ12 ment opportunities because of that individual’s sta13 tus as unemployed; 

14 (2) to prohibit employers and employment agen15 cies from publishing or posting any advertisement or 

16 announcement for an employment opportunity that 

17 indicates that an individual’s status as unemployed 

18 disqualifies that individual for the opportunity; and 

19 (3) to eliminate the burdens imposed on com20 merce due to the exclusion of such individuals from 

21 employment. 

22 SEC. 1573. DEFINITIONS. 

23 As used in this subtitle— 

24 (1) the term ‘‘affected individual’’ means any 

25 person who was subject to an unlawful employment 


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1 practice solely because of that individual’s status as 

2 unemployed; 

3 (2) the term ‘‘Commission’’ means the Equal 

4 Employment Opportunity Commission; 

5 (3) the term ‘‘employee’’ means— 

6 (A) an employee as defined in section 

7 701(f) of the Civil Rights Act of 1964 (42 

8 U.S.C. 2000e(f)); 

9 (B) a State employee to which section 

10 302(a)(1) of the Government Employee Rights 

11 Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) ap12 plies; 

13 (C) a covered employee, as defined in sec14 tion 101 of the Congressional Accountability 

15 Act of 1995 (2 U.S.C. 1301) or section 411(c) 

16 of title 3, United States Code; or 

17 (D) an employee or applicant to which sec18 tion 717(a) of the Civil Rights Act of 1964 (42 

19 U.S.C. 2000e–16(a)) applies; 

20 (4) the term ‘‘employer’’ means— 

21 (A) a person engaged in an industry affect22 ing commerce (as defined in section 701(h) of 

23 the Civil Rights Act of 1964 (42 U.S.C. 

24 2000e(h)) who has 15 or more employees for 

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1 endar weeks in the current or preceding cal2 endar year, and any agent of such a person, but 

3 does not include a bona fide private member4 ship club that is exempt from taxation under 

5 section 501(c) of the Internal Revenue Code of 

6 1986; 

7 (B) an employing authority to which sec8 tion 302(a)(1) of the Government Employee 

9 Rights Act of 1991 applies; 

10 (C) an employing office, as defined in sec11 tion 101 of the Congressional Accountability 

12 Act of 1995 or section 411(c) of title 3, United 

13 States Code; or 

14 (D) an entity to which section 717(a) of 

15 the Civil Rights Act of 1964 (42 U.S.C. 2000e– 

16 16(a)) applies; 

17 (5) the term ‘‘employment agency’’ means any 

18 person regularly undertaking with or without com19 pensation to procure employees for an employer or 

20 to procure for individuals opportunities to work as 

21 employees for an employer and includes an agent of 

22 such a person, and any person who maintains an 

23 Internet website or print medium that publishes ad24 vertisements or announcements of openings in jobs 

25 for employees; 


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1 (6) the term ‘‘person’’ has the meaning given 

2 the term in section 701(a) of the Civil Rights Act 

3 of 1964 (42 U.S.C. 2000e(a)); and 

4 (7) the term ‘‘status as unemployed’’, used with 

5 respect to an individual, means that the individual, 

6 at the time of application for employment or at the 

7 time of action alleged to violate this subtitle, does 

8 not have a job, is available for work and is searching 

9 for work. 

10 SEC. 1574. PROHIBITED ACTS. 

11 (a) EMPLOYERS.—It shall be an unlawful employ12 ment practice for an employer to— 

13 (1) publish in print, on the Internet, or in any 

14 other medium, an advertisement or announcement 

15 for an employee for any job that includes— 

16 (A) any provision stating or indicating that 

17 an individual’s status as unemployed disquali18 fies the individual for any employment oppor19 tunity; or 

20 (B) any provision stating or indicating that 

21 an employer will not consider or hire an indi22 vidual for any employment opportunity based 

23 on that individual’s status as unemployed; 


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1 (2) fail or refuse to consider for employment, or 

2 fail or refuse to hire, an individual as an employee 

3 because of the individual’s status as unemployed; or 

4 (3) direct or request that an employment agen5 cy take an individual’s status as unemployed into ac6 count to disqualify an applicant for consideration, 

7 screening, or referral for employment as an em8 ployee. 

9 (b) EMPLOYMENT AGENCIES.—It shall be an unlaw10 ful employment practice for an employment agency to— 

11 (1) publish, in print or on the Internet or in 

12 any other medium, an advertisement or announce13 ment for any vacancy in a job, as an employee, that 

14 includes— 

15 (A) any provision stating or indicating that 

16 an individual’s status as unemployed disquali17 fies the individual for any employment oppor18 tunity; or 

19 (B) any provision stating or indicating that 

20 the employment agency or an employer will not 

21 consider or hire an individual for any employ22 ment opportunity based on that individual’s sta23 tus as unemployed; 

24 (2) screen, fail or refuse to consider, or fail or 

25 refuse to refer an individual for employment as an 


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1 employee because of the individual’s status as unem2 ployed; or 

3 (3) limit, segregate, or classify any individual in 

4 any manner that would limit or tend to limit the in5 dividual’s access to information about jobs, or con6 sideration, screening, or referral for jobs, as employ7 ees, solely because of an individual’s status as unem8 ployed. 

9 (c) INTERFERENCE WITH RIGHTS, PROCEEDINGS OR

10 INQUIRIES.—It shall be unlawful for any employer or em11 ployment agency to— 

12 (1) interfere with, restrain, or deny the exercise 

13 of or the attempt to exercise, any right provided 

14 under this subtitle; or 

15 (2) fail or refuse to hire, to discharge, or in any 

16 other manner to discriminate against any individual, 

17 as an employee, because such individual— 

18 (A) opposed any practice made unlawful by 

19 this subtitle; 

20 (B) has asserted any right, filed any 

21 charge, or has instituted or caused to be insti22 tuted any proceeding, under or related to this 

23 subtitle; 

24 (C) has given, or is about to give, any in25 formation in connection with any inquiry or 


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1 proceeding relating to any right provided under 

2 this subtitle; or 

3 (D) has testified, or is about to testify, in 

4 any inquiry or proceeding relating to any right 

5 provided under this subtitle. 

6 (d) CONSTRUCTION.—Nothing in this subtitle is in7 tended to preclude an employer or employment agency 

8 from considering an individual’s employment history, or 

9 from examining the reasons underlying an individual’s sta10 tus as unemployed, in assessing an individual’s ability to 

11 perform a job or in otherwise making employment deci12 sions about that individual. Such consideration or exam13 ination may include an assessment of whether an individ14 ual’s employment in a similar or related job for a period 

15 of time reasonably proximate to the consideration of such 

16 individual for employment is job-related or consistent with 

17 business necessity. 

18 SEC. 1575. ENFORCEMENT. 

19 (a) ENFORCEMENT POWERS.—With respect to the 

20 administration and enforcement of this subtitle— 

21 (1) the Commission shall have the same powers 

22 as the Commission has to administer and enforce— 

23 (A) title VII of the Civil Rights Act of 

24 1964 (42 U.S.C. 2000e et seq.); or 


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1 (B) sections 302 and 304 of the Govern2 ment Employee Rights Act of 1991 (42 U.S.C. 

3 2000e–16b and 2000e–16c), in the case of an 

4 affected individual who would be covered by 

5 such title, or by section 302(a)(1) of the Gov6 ernment Employee Rights Act of 1991 (42 

7 U.S.C. 2000e–16b(a)(1)), respectively; 

8 (2) the Librarian of Congress shall have the 

9 same powers as the Librarian of Congress has to ad10 minister and enforce title VII of the Civil Rights Act 

11 of 1964 (42 U.S.C. 2000e et seq.) in the case of an 

12 affected individual who would be covered by such 

13 title; 

14 (3) the Board (as defined in section 101 of the 

15 Congressional Accountability Act of 1995 (2 U.S.C. 

16 1301)) shall have the same powers as the Board has 

17 to administer and enforce the Congressional Ac18 countability Act of 1995 (2 U.S.C. 1301 et seq.) in 

19 the case of an affected individual who would be cov20 ered by section 201(a)(1) of such Act (2 U.S.C. 

21 1311(a)(1)); 

22 (4) the Attorney General shall have the same 

23 powers as the Attorney General has to administer 

24 and enforce— 


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1 (A) title VII of the Civil Rights Act of 

2 1964 (42 U.S.C. 2000e et seq.); or 

3 (B) sections 302 and 304 of the Govern4 ment Employee Rights Act of 1991 (42 U.S.C. 

5 2000e–16b and 2000e–16c); in the case of an 

6 affected individual who would be covered by 

7 such title, or of section 302(a)(1) of the Gov8 ernment Employee Rights Act of 1991 (42 

9 U.S.C. 2000e–16b(a)(1)), respectively; 

10 (5) the President, the Commission, and the 

11 Merit Systems Protection Board shall have the same 

12 powers as the President, the Commission, and the 

13 Board, respectively, have to administer and enforce 

14 chapter 5 of title 3, United States Code, in the case 

15 of an affected individual who would be covered by 

16 section 411 of such title; and 

17 (6) a court of the United States shall have the 

18 same jurisdiction and powers as the court has to en19 force— 

20 (A) title VII of the Civil Rights Act of 

21 1964 (42 U.S.C. 2000e et seq.) in the case of 

22 a claim alleged by such individual for a viola23 tion of such title; 

24 (B) sections 302 and 304 of the Govern25 ment Employee Rights Act of 1991 (42 U.S.C. 


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1 2000e–16b and 2000e–16c) in the case of a 

2 claim alleged by such individual for a violation 

3 of section 302(a)(1) of such Act (42 U.S.C. 

4 2000e–16b(a)(1)); 

5 (C) the Congressional Accountability Act 

6 of 1995 (2 U.S.C. 1301 et seq.) in the case of 

7 a claim alleged by such individual for a viola8 tion of section 201(a)(1) of such Act (2 U.S.C. 

9 1311(a)(1)); and 

10 (D) chapter 5 of title 3, United States 

11 Code, in the case of a claim alleged by such in12 dividual for a violation of section 411 of such 

13 title. 

14 (b) PROCEDURES.—The procedures applicable to a 

15 claim alleged by an individual for a violation of this sub16 title are— 

17 (1) the procedures applicable for a violation of 

18 title VII of the Civil Rights Act of 1964 (42 U.S.C. 

19 2000e et seq.) in the case of a claim alleged by such 

20 individual for a violation of such title; 

21 (2) the procedures applicable for a violation of 

22 section 302(a)(1) of the Government Employee 

23 Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) in 

24 the case of a claim alleged by such individual for a 

25 violation of such section; 


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1 (3) the procedures applicable for a violation of 

2 section 201(a)(1) of the Congressional Account3 ability Act of 1995 (2 U.S.C. 1311(a)(1)) in the 

4 case of a claim alleged by such individual for a viola5 tion of such section; and 

6 (4) the procedures applicable for a violation of 

7 section 411 of title 3, United States Code, in the 

8 case of a claim alleged by such individual for a viola9 tion of such section. 

10 (c) REMEDIES.— 

11 (1) In any claim alleging a violation of section 

12 1574(a)(1) or 1574(b)(1) of this subtitle, an indi13 vidual, or any person acting on behalf of the indi14 vidual as set forth in section 1575(a) of this subtitle, 

15 may be awarded, as appropriate: 

16 (A) An order enjoining the respondent 

17 from engaging in the unlawful employment 

18 practice. 

19 (B) Reimbursement of costs expended as a 

20 result of the unlawful employment practice. 

21 (C) An amount in liquidated damages not 

22 to exceed $1,000 for each day of the violation. 

23 (D) Reasonable attorney’s fees (including 

24 expert fees) and costs attributable to the pur25 suit of a claim under this subtitle, except that 


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1 no person identified in section 733(a) of this 

2 subtitle shall be eligible to receive attorney’s 

3 fees. 

4 (2) In any claim alleging a violation of any 

5 other subsection of this subtitle, an individual, or 

6 any person acting on behalf of the individual as set 

7 forth in section 1575(a) of this subtitle, may be 

8 awarded, as appropriate, the remedies available for 

9 a violation of title VII of the Civil Rights Act of 

10 1964 (42 U.S.C. 2000e et seq.), section 302(a)(1) of 

11 the Government Employee Rights Act of 1991 (42 

12 U.S.C. 2000e–16b(a)(1)), section 201(a)(1) of the 

13 Congressional Accountability Act of 1995 (2 U.S.C. 

14 1311(a)(1)), and section 411 of title 3, United 

15 States Code, except that in a case in which wages, 

16 salary, employment benefits, or other compensation 

17 have not been denied or lost to the individual, dam18 ages may be awarded in an amount not to exceed 

19 $5,000. 

20 SEC. 1576. FEDERAL AND STATE IMMUNITY. 

21 (a) ABROGATION OF STATE IMMUNITY.—A State 

22 shall not be immune under the 11th Amendment to the 

23 Constitution from a suit brought in a Federal court of 

24 competent jurisdiction for a violation of this subtitle. 

25 (b) WAIVER OF STATE IMMUNITY.— 


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1 (1) IN GENERAL.— 

2 (A) WAIVER.—A State’s receipt or use of 

3 Federal financial assistance for any program or 

4 activity of a State shall constitute a waiver of 

5 sovereign immunity, under the 11th Amend6 ment to the Constitution or otherwise, to a suit 

7 brought by an employee or applicant for em8 ployment of that program or activity under this 

9 subtitle for a remedy authorized under section 

10 1575(c) of this subtitle. 

11 (B) DEFINITION.—In this paragraph, the 

12 term ‘‘program or activity’’ has the meaning 

13 given the term in section 606 of the Civil 

14 Rights Act of 1964 (42 U.S.C. 2000d–4a). 

15 (2) EFFECTIVE DATE.—With respect to a par16 ticular program or activity, paragraph (1) applies to 

17 conduct occurring on or after the day, after the date 

18 of enactment of this Act, on which a State first re19 ceives or uses Federal financial assistance for that 

20 program or activity. 

21 (c) REMEDIES AGAINST STATE OFFICIALS.—An offi22 cial of a State may be sued in the official capacity of the 

23 official by any employee or applicant for employment who 

24 has complied with the applicable procedures of this sub25 title, for relief that is authorized under this subtitle. 


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1 (d) REMEDIES AGAINST THE UNITED STATES AND

2 THE STATES.—Notwithstanding any other provision of 

3 this subtitle, in an action or administrative proceeding 

4 against the United States or a State for a violation of this 

5 subtitle, remedies (including remedies at law and in eq6 uity) are available for the violation to the same extent as 

7 such remedies would be available against a non-govern8 mental entity. 

9 SEC. 1577. RELATIONSHIP TO OTHER LAWS. 

10 This subtitle shall not invalidate or limit the rights, 

11 remedies, or procedures available to an individual claiming 

12 discrimination prohibited under any other Federal law or 

13 regulation or any law or regulation of a State or political 

14 subdivision of a State. 

15 SEC. 1578. SEVERABILITY. 

16 If any provision of this subtitle, or the application 

17 of the provision to any person or circumstance, is held to 

18 be invalid, the remainder of this subtitle and the applica19 tion of the provision to any other person or circumstances 

20 shall not be affected by the invalidity. 

21 SEC. 1579. EFFECTIVE DATE. 

22 This subtitle shall take effect on the date of enact23 ment of this Act and shall not apply to conduct occurring 

24 before the effective date. 


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1 TITLE XVI—LIVING AMERICAN 

2 WAGE 

3 SEC. 1601. FINDINGS; SENSE OF CONGRESS. 

4 (a) FINDINGS.—Congress finds the following: 

5 (1) In 2012, there were over 46,500,000 Ameri6 cans living in poverty who were separated from the 

7 opportunities of the Nation by their income, their 

8 housing, and their access to education, jobs, and 

9 health care. 

10 (2) A full-time worker earning the Federal min11 imum wage earns an income below the Federal pov12 erty threshold for a family of 4, consisting of 2 

13 adults and 2 children. 

14 (3) The average fair market rent for a 1-bed15 room apartment is more than 65 percent of the 

16 monthly income of a full-time worker earning the 

17 minimum wage. In comparison, the generally accept18 ed definition of affordability is for a household to 

19 pay not more than 30 percent of its income on hous20 ing. 

21 (4) Two full-time workers earning the Federal 

22 minimum wage earn an income below the national 

23 housing wage for a 1-bedroom apartment, the 

24 amount a person needs to earn to afford a 1-bed25 room apartment at average rent. 


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1 (b) SENSE OF CONGRESS.—It is the sense of Con2 gress that— 

3 (1) the Federal minimum wage should, as a 

4 minimum, be adjusted every 4 years so that a person 

5 working for such a wage may earn an annual income 

6 that is not less than 15 percent higher than the 

7 Federal poverty threshold for a family of 4, as deter8 mined by the Bureau of the Census; 

9 (2) the minimum wage should be set at a level 

10 high enough to allow 2 full-time minimum wage 

11 workers to earn an income above the national hous12 ing wage; and 

13 (3) Congress, any of the several States, the Dis14 trict of Columbia, any territory or possession of the 

15 United States, any Indian tribe, or any local or mu16 nicipal government of a State may establish a higher 

17 minimum wage requirement than that established in 

18 this title. 

19 SEC. 1602. MINIMUM WAGE. 

20 Section 6 of the Fair Labor Standards Act of 1938 

21 (29 U.S.C. 206) is amended— 

22 (1) in subsection (a)(1)— 

23 (A) by striking ‘‘and’’ at the end of sub24 paragraph (B); 


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1 (B) by inserting ‘‘and’’ at the end of sub2 paragraph (C); and 

3 (C) by inserting at the end the following: 

4 ‘‘(D) not less than the amount determined 

5 by the Secretary under subsection (b), begin6 ning September 1, 2014;’’; and 

7 (2) by redesignating subsection (b) as sub8 section (c) and inserting after subsection (a) the fol9 lowing: 

10 ‘‘(b)(1) Subject to paragraph (2), not later than June 

11 1, 2014, and once every 4 years thereafter, the Secretary 

12 shall determine the minimum wage rate applicable under 

13 subsection (a)(1) based on the formula described in para14 graph (3). The Secretary shall publish such wage rate in 

15 the Federal Register not later than October 1 of each year. 

16 ‘‘(2) If the minimum wage rate determined by the 

17 Secretary under paragraph (1) would result in a lower 

18 minimum wage rate than the minimum wage rate in effect 

19 at the time of such determination, the Secretary shall not 

20 adjust, pursuant to this subsection, the minimum wage 

21 rate so in effect. 

22 ‘‘(3) The minimum wage rate determined by the Sec23 retary under paragraph (1) shall be the minimum hourly 

24 wage sufficient for a person working for such wage for 

25 40 hours per week, 52 weeks per year, to earn an annual 


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1 income in an amount that is 15 percent higher than the 

2 Federal poverty threshold for a family of 4, with two chil3 dren under the age of 18, and living in any of the 48 con4 tiguous States, as published by the Bureau of the Census 

5 for the year in which the wage rate is being so deter6 mined.’’. 

7 TITLE XVII—EMERGENCY UNEM8 PLOYMENT COMPENSATION 

9 EXTENSION 

10 SEC. 1701. EXTENSION OF EMERGENCY UNEMPLOYMENT 

11 COMPENSATION PROGRAM. 

12 (a) EXTENSION.—Section 4007(a)(2) of the Supple13 mental Appropriations Act, 2008 (Public Law 110–252; 

14 26 U.S.C. 3304 note) is amended by striking ‘‘January 

15 1, 2014’’ and inserting ‘‘January 1, 2015’’. 

16 (b) FUNDING.—Section 4004(e)(1) of the Supple17 mental Appropriations Act, 2008 (Public Law 110–252; 

18 26 U.S.C. 3304 note) is amended— 

19 (1) in subparagraph (I), by striking ‘‘and’’ at 

20 the end; 

21 (2) in subparagraph (J), by inserting ‘‘and’’ at 

22 the end; and 

23 (3) by inserting after subparagraph (J) the fol24 lowing: 


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1 ‘‘(K) the amendments made by section 

2 2(a) of the Emergency Unemployment Com3 pensation Extension Act;’’. 

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

5 this section shall take effect as if included in the enact6 ment of the American Taxpayer Relief Act of 2012 (Public 

7 Law 112–240). 

8 SEC. 1702. TEMPORARY EXTENSION OF EXTENDED BENEFIT 

9 PROVISIONS. 

10 (a) IN GENERAL.—Section 2005 of the Assistance for 

11 Unemployed Workers and Struggling Families Act, as 

12 contained in Public Law 111–5 (26 U.S.C. 3304 note), 

13 is amended— 

14 (1) by striking ‘‘December 31, 2013’’ each 

15 place it appears and inserting ‘‘December 31, 

16 2014’’; and 

17 (2) in subsection (c), by striking ‘‘June 30, 

18 2014’’ and inserting ‘‘June 30, 2015’’. 

19 (b) EXTENSION OF MATCHING FOR STATES WITH

20 NO WAITING WEEK.—Section 5 of the Unemployment 

21 Compensation Extension Act of 2008 (Public Law 110– 

22 449; 26 U.S.C. 3304 note) is amended by striking ‘‘June 

23 30, 2014’’ and inserting ‘‘June 30, 2015’’. 

24 (c) EXTENSION OF MODIFICATION OF INDICATORS

25 UNDER THE EXTENDED BENEFIT PROGRAM.—Section 


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1 203 of the Federal-State Extended Unemployment Com2 pensation Act of 1970 (26 U.S.C. 3304 note) is amend3 ed— 

4 (1) in subsection (d), by striking ‘‘December 

5 31, 2013’’ and inserting ‘‘December 31, 2014’’; and 

6 (2) in subsection (f)(2), by striking ‘‘December 

7 31, 2013’’ and inserting ‘‘December 31, 2014’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall take effect as if included in the enact10 ment of the American Taxpayer Relief Act of 2012 (Public 

11 Law 112–240). 

12 SEC. 1703. EXTENSION OF FUNDING FOR REEMPLOYMENT 

13 SERVICES AND REEMPLOYMENT AND ELIGI14 BILITY ASSESSMENT ACTIVITIES. 

15 (a) IN GENERAL.—Section 4004(c)(2)(A) of the Sup16 plemental Appropriations Act, 2008 (Public Law 110– 

17 252; 26 U.S.C. 3304 note) is amended by striking 

18 ‘‘through fiscal year 2014’’ and inserting ‘‘through fiscal 

19 year 2015’’. 

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

21 this section shall take effect as if included in the enact22 ment of the American Taxpayer Relief Act of 2012 (Public 

23 Law 112–240). 


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1 SEC. 1704. ADDITIONAL EXTENDED UNEMPLOYMENT BENE2 FITS UNDER THE RAILROAD UNEMPLOY3 MENT INSURANCE ACT. 

4 (a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail5 road Unemployment Insurance Act (45 U.S.C. 

6 352(c)(2)(D)(iii)) is amended— 

7 (1) by striking ‘‘June 30, 2013’’ and inserting 

8 ‘‘June 30, 2014’’; and 

9 (2) by striking ‘‘December 31, 2013’’ and in10 serting ‘‘December 31, 2014’’. 

11 (b) CLARIFICATION ON AUTHORITY TO USE

12 FUNDS.—Funds appropriated under either the first or 

13 second sentence of clause (iv) of section 2(c)(2)(D) of the 

14 Railroad Unemployment Insurance Act shall be available 

15 to cover the cost of additional extended unemployment 

16 benefits provided under such section 2(c)(2)(D) by reason 

17 of the amendments made by subsection (a) as well as to 

18 cover the cost of such benefits provided under such section 

19 2(c)(2)(D), as in effect on the day before the date of en20 actment of this Act. 

21 (c) FUNDING FOR ADMINISTRATION.—Out of any 

22 funds in the Treasury not otherwise appropriated, there 

23 are appropriated to the Railroad Retirement Board 

24 $62,500 for administrative expenses associated with the 

25 payment of additional extended unemployment benefits 

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1 ployment Insurance Act by reason of the amendments 

2 made by subsection (a), to remain available until ex3 pended. 

4 SEC. 1705. FLEXIBILITY FOR UNEMPLOYMENT PROGRAM 

5 AGREEMENTS. 

6 (a) FLEXIBILITY.— 

7 (1) IN GENERAL.—Subsection (g) of section 

8 4001 of the Supplemental Appropriations Act, 2008 

9 (Public Law 110–252; 26 U.S.C. 3304 note) shall 

10 not apply with respect to a State that has enacted 

11 a law before December 1, 2013, that, upon taking 

12 effect, would violate such subsection. 

13 (2) EFFECTIVE DATE.—Paragraph (1) is effec14 tive with respect to weeks of unemployment begin15 ning on or after December 29, 2013. 

16 (b) PERMITTING A SUBSEQUENT AGREEMENT.— 

17 Nothing in such title IV shall preclude a State whose 

18 agreement under such title was terminated from entering 

19 into a subsequent agreement under such title on or after 

20 the date of the enactment of this Act if the State, taking 

21 into account the application of subsection (a), would other22 wise meet the requirements for an agreement under such 

23 title. 


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1 DIVISION E—ANTI-POVERTY TAX 

2 PROVISION 

3 TITLE XVIII—CHILD TAX CREDIT 

4 PERMANENCY 

5 SEC. 1801. MODIFICATIONS OF THE CHILD TAX CREDIT. 

6 (a) PERMANENT EXTENSION.— 

7 (1) IN GENERAL.—Clause (i) of section 

8 24(d)(1)(B) of the Internal Revenue Code of 1986 

9 is amended by striking ‘‘$10,000’’ and inserting 

10 ‘‘$3,000’’. 

11 (2) CONFORMING AMENDMENTS.—Section 

12 24(d) of such Code is amended by striking para13 graphs (3) and (4). 

14 (b) INFLATION ADJUSTMENT.—Section 24 of such 

15 Code is amended by adding at the end the following new 

16 subsection: 

17 ‘‘(g) INFLATION ADJUSTMENT.—In the case of any 

18 taxable year beginning in a calendar year after 2013, the 

19 $1,000 amount contained in subsection (a) shall be in20 creased by an amount equal to— 

21 ‘‘(1) such dollar amount, multiplied by 

22 ‘‘(2) the cost-of-living adjustment determined 

23 under section 1(f)(3) for the calendar year in which 

24 the taxable year begins, determined by substituting 


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1 ‘calendar year 2012’ for ‘calendar year 1992’ in sub2 paragraph (B) thereof. 

3 Any increase determined under the preceding sentence 

4 shall be rounded to the nearest multiple of $50.’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2012. 

8 TITLE XIX—EARNED INCOME 

9 TAX CREDIT 

10 SEC. 1901. EXPANSION OF EARNED INCOME CREDIT. 

11 (a) CREDIT PERCENTAGES FOR INDIVIDUALS WITH

12 NO QUALIFYING CHILDREN.—The item in the table in 

13 section 32(b)(1)(A) of the Internal Revenue Code of 1986 

14 under the column relating to the credit percentage is 

15 amended by striking ‘‘7.65’’ and inserting ‘‘15.3’’. 

16 (b) PHASEOUT PERCENTAGE FOR INDIVIDUALS

17 WITH NO QUALIFYING CHILDREN.—The item in the table 

18 in section 32(b)(1)(A) of the Internal Revenue Code of 

19 1986 under the column relating to the phaseout percent20 age is amended by striking ‘‘7.65’’ and inserting ‘‘15.3’’. 

21 (c) PHASEOUT AMOUNT.— 

22 (1) IN GENERAL.—The item in the table in sec23 tion 32(b)(2(A) of the Internal Revenue Code of 

24 1986 under the column relating to the phaseout 


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1 amount is amended by striking ‘‘$5,280’’ and insert2 ing ‘‘$11,500’’. 

3 (2) INFLATION ADJUSTMENT.— 

4 (A) IN GENERAL.—Section 32(j) of the In5 ternal Revenue Code of 1986 is amended by re6 designating paragraph (2) as paragraph (3) 

7 and by inserting after paragraph (1) the fol8 lowing new paragraph: 

9 ‘‘(2) EXCEPTION.—In the case of the amount 

10 in subsection (b)(2)(A) under the column relating to 

11 the phaseout amount for taxable years beginning 

12 after 2014, paragraph (1)(B)(i) shall be applied by 

13 substituting ‘calendar year 2013’ for ‘calendar year 

14 1995’ and paragraph (1) shall not apply to such 

15 amount for taxable years beginning in 2013.’’. 

16 (B) CONFORMING AMENDMENTS.—Section 

17 32(j) of the Internal Revenue Code of 1986 is 

18 amended— 

19 (i) in paragraph (1)(B)(i) by inserting 

20 ‘‘except as provided in paragraph (2)’’ be21 fore ‘‘in the case of’’, and 

22 (ii) in paragraph (2)(A) by inserting 

23 ‘‘or (2)’’ after ‘‘paragraph (1)’’. 

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1 enue Code of 1986 is amended by striking ‘‘age 25 but 

2 not attained age 65’’ and inserting ‘‘age 21 but not at3 tained retirement age (as defined in section 216(l) of the 

4 Social Security Act)’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2013. 

8 TITLE XX—CHILD CARE ACCESS 

9 AND REFUNDABILITY EXPAN10 SION ACT 

11 SEC. 2001. CREDIT FOR DEPENDENT CARE EXPENSES. 

12 (a) CREDIT MADE REFUNDABLE.— 

13 (1) IN GENERAL.—The Internal Revenue Code 

14 of 1986 is amended by redesignating section 21 as 

15 section 36C and by moving such section after section 

16 36B. 

17 (2) CREDIT NOT ALLOWED TO NONRESIDENT

18 ALIENS.—Section 36C(a)(1) of the Internal Revenue 

19 Code of 1986, as redesignated by this section, is 

20 amended by inserting ‘‘(other than a nonresident 

21 alien)’’ after ‘‘In the case of an individual’’. 

22 (3) CONFORMING AMENDMENTS.— 

23 (A) Section 23(f)(1) of such Code is 

24 amended by striking ‘‘section 21(e)’’ and insert25 ing ‘‘section 36C(e)’’. 


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1 (B) Section 35(g)(6) of such Code is 

2 amended by striking ‘‘section 21(e)’’ and insert3 ing ‘‘section 36C(e)’’. 

4 (C) Section 36C(a)(1) of such Code, as re5 designated by this section, is amended by strik6 ing ‘‘this chapter’’ and inserting ‘‘this subtitle’’. 

7 (D) Section 129(a)(2)(C) of such Code is 

8 amended by striking ‘‘section 21(e)’’ and insert9 ing ‘‘section 36C(e)’’. 

10 (E) Section 129(b)(2) of such Code is 

11 amended by striking ‘‘section 21(d)(2)’’ and in12 serting ‘‘section 36C(d)(2)’’. 

13 (F) Section 129(e)(1) of such Code is 

14 amended by striking ‘‘section 21(b)(2)’’ and in15 serting ‘‘section 36C(b)(2)’’. 

16 (G) Section 213(e) of such Code is amend17 ed by striking ‘‘section 21’’ and inserting ‘‘sec18 tion 36C’’. 

19 (H) Section 6211(b)(4)(A) of such Code is 

20 amended by inserting ‘‘36C,’’ after ‘‘36B,’’. 

21 (I) Section 6213(g)(2)(H) of such Code is 

22 amended by striking ‘‘section 21’’ and inserting 

23 ‘‘section 36C’’. 

24 (J) Section 6213(g)(2)(L) of such Code is 

25 amended by striking ‘‘section 21, 24, 32, or 


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1 6428’’ and inserting ‘‘section 24, 32, 36C, or 

2 6428’’. 

3 (K) Paragraph (2) of section 1324(b) of 

4 title 31, United States Code, is amended by in5 serting ‘‘36C,’’ after ‘‘36B,’’. 

6 (L) The table of sections for subpart A of 

7 part IV of subchapter A of chapter 1 of the In8 ternal Revenue Code of 1986 is amended by 

9 striking the item relating to section 21. 

10 (M) The table of sections for subpart C of 

11 part IV of subchapter A of chapter 1 of such 

12 Code is amended by inserting after the item re13 lating to section 36B the following new item: 

‘‘Sec. 36C. Expenses for household and dependent care services necessary for 

gainful employment.’’. 

14 (b) INFLATION ADJUSTMENT OF INCOME THRESH15 OLDS FOR CREDIT PHASEDOWN.—Section 36C(e) of the 

16 Internal Revenue Code of 1986, as redesignated by this 

17 section, is amended by adding at the end the following 

18 new paragraph: 

19 ‘‘(11) INFLATION ADJUSTMENT.— 

20 ‘‘(A) IN GENERAL.—In the case of any 

21 taxable year beginning in a calendar year after 

22 2013, the $2,000 amount and the $15,000 

23 amount in subsection (a)(2) shall each be in24 creased by an amount equal to— 


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1 ‘‘(i) such dollar amount, multiplied by 

2 ‘‘(ii) the cost-of-living adjustment de3 termined under section 1(f)(3) for the cal4 endar year in which the taxable year be5 gins, determined by substituting ‘calendar 

6 year 2012’ for ‘calendar year 1992’ in sub7 paragraph (B) thereof. 

8 ‘‘(B) ROUNDING.—Any increase deter9 mined under subparagraph (A) shall be rounded 

10 to the nearest multiple of— 

11 ‘‘(i) in the case of the $2,000 amount, 

12 $50, and 

13 ‘‘(ii) in the case of the $15,000 

14 amount, $100.’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2013. 

18 DIVISION F—MISCELLANEOUS 

19 TITLE XXI—POVERTY IMPACT 

20 TRIGGER 

21 SEC. 2101. CERTAIN POVERTY IMPACT LEGISLATION SUB22 JECT TO POINT OF ORDER. 

23 Rule XXI of the Rules of the House of Representa24 tives is amended by adding at the end the following new 

25 clause: 


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1 ‘‘Certain legislation reported by committees 

2 ‘‘12. It shall not be in order to consider a bill or joint 

3 resolution of a public nature authorizing an appropriation 

4 of $10,000,000 or more, unless— 

5 ‘‘(a) the committee report accompanying the bill 

6 or joint resolution includes a CBO Poverty Index Di7 vision impact statement; or 

8 ‘‘(b) the chair of the committee reporting the 

9 bill or joint resolution submits such statement to be 

10 published in the Congressional Record before consid11 eration of the bill or joint resolution.’’. 

12 SEC. 2102. CONGRESSIONAL BUDGET OFFICE POVERTY IM13 PACT DIVISION. 

14 (a) IN GENERAL.—Section 202 of the Congressional 

15 Budget Act of 1974 (2 U.S.C. 602) is amended by adding 

16 at the end the following new subsection: 

17 ‘‘(h) CBO POVERTY IMPACT DIVISION.— 

18 ‘‘(1) CREATION.—There is established within 

19 the Office the CBO Poverty Impact Division (herein20 after in this subsection referred to as the ‘Division’). 

21 ‘‘(2) DUTIES AND FUNCTIONS.— 

22 ‘‘(A) PREPARATION AND SUBMISSION OF

23 IMPACT STATEMENT.—When a chair of a com24 mittee of the House of Representatives submits 

25 a written request to the Division to prepare and 

26 submit to the committee a CBO Poverty Index 


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1 Division impact statement, the Division shall 

2 prepare and submit such statement to the com3 mittee not later than 30 days after such re4 quest. 

5 ‘‘(B) CONTENT OF IMPACT STATEMENT.— 

6 A CBO Poverty Index Division impact state7 ment shall include the following: 

8 ‘‘(i) A projected ratio equal to the 

9 amount of appropriations authorized in the 

10 bill or joint resolution that will benefit in11 dividuals and families below the poverty 

12 threshold over the total amount of appro13 priations authorized by the bill or joint res14 olution. 

15 ‘‘(ii) A projection of the number of in16 dividual and family incomes— 

17 ‘‘(I) that may decrease below the 

18 poverty threshold because of the bill 

19 or joint resolution; and 

20 ‘‘(II) that may increase above the 

21 poverty threshold because of the bill 

22 or joint resolution. 

23 ‘‘(iii) A projection as to how the legis24 lation improves access to basic human 


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1 services, including health care, housing, 

2 and education. 

3 ‘‘(C) POVERTY THRESHOLD DEFINED.—In 

4 this subsection, the term ‘poverty threshold’ 

5 means an income level below 200 percent of the 

6 poverty line (as defined in section 673(2) of the 

7 Community Services Block Grant Act).’’. 

8 SEC. 2103. EXERCISE OF RULEMAKING POWERS. 

9 Section 2101 of this title is enacted by the House 

10 of Representatives— 

11 (1) as an exercise of the rulemaking power of 

12 the House of Representatives and as such it shall be 

13 considered as part of the rules of the House of Rep14 resentatives and such rules shall supersede other 

15 rules only to the extent that they are inconsistent 

16 therewith; and 

17 (2) with the full recognition of the constitu18 tional right of the House of Representatives to 

19 change such rules at any time, in the same manner, 

20 and to the same extent as in the case of any other 

21 rule of the House of Representatives. 

22 SEC. 2104. EFFECTIVE DATE. 

23 The amendments made by this title shall apply to any 

24 bill or joint resolution reported by a committee of the 


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1 House of Representatives after the 90-day period begin2 ning on the date of enactment of this Act. 

3 TITLE XXII—HALF IN TEN ACT 

4 TO CREATE A NATIONAL 

5 STRATEGY TO REDUCE POV6 ERTY 

7 SEC. 2201. FINDINGS. 

8 Congress finds the following: 

9 (1) The persistence of poverty, and especially 

10 intergenerational poverty, in America can be seen as 

11 a deep, structural problem that implicates our value 

12 system and our educational and economic institu13 tions. 

14 (2) Poverty may be defined as the lack of basic 

15 necessities of life such as food, shelter, clothing, 

16 health care, education, economic security, and eco17 nomic opportunity. 

18 (3) Policy initiatives and many safety net pro19 grams addressing poverty have not kept pace with 

20 the needs of millions of Americans. 

21 (4) The lack of an equitable distribution of 

22 housing choices across the country leads to isolation 

23 and concentrated poverty. 


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1 (5) The number of Americans living in poverty 

2 rose by over 2.6 million from 2009 to 2010 (U.S. 

3 Census Bureau, September 2011). 

4 (6) There were 46.2 million Americans living in 

5 poverty in 2010, consisting of 15.1 percent of the 

6 American people (U.S. Census Bureau, September 

7 2011). 

8 (7) Poverty has a disproportionate impact on 

9 minority communities in America with 27.4 percent 

10 of African-Americans, 26.6 percent of Hispanics, 

11 12.1 percent of Asian Americans, and 9.9 percent of 

12 Whites living in poverty in the United States in 

13 2010 (U.S. Census Bureau, September 2011). 

14 (8) In 2010 a family of 4 was considered poor 

15 under the U.S. Census Bureau’s official measure if 

16 the family’s income was below $22,314. 

17 (9) The economic consequences of poverty in 

18 the United States are estimated to be at least $500 

19 billion per year (Center for American Progress, 

20 2007). 

21 (10) Children who grow up in poverty experi22 ence higher crime rates, decreased productivity, and 

23 higher health costs over their lives (Center for Amer24 ican Progress, 2007). 


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1 (11) 3,500,000 seniors lived in poverty in 2010 

2 (U.S. Census Bureau, 2011). 

3 (12) Young Americans, ages 18–24, experience 

4 a higher poverty rate than the national average 

5 (U.S. Census Bureau, 2011). 

6 (13) 16,400,000 children lived in poverty in 

7 2010—more than one in every five American chil8 dren (U.S. Census Bureau, 2011). 

9 (14) Almost 35 percent of African-American 

10 children and over 30 percent of Hispanic children 

11 lived in poverty in 2009 (U.S. Census Bureau, 

12 2011). 

13 (15) The 46,180,000 of Americans in poverty 

14 in 2010 was the largest number yet recorded in the 

15 52 years for which poverty estimates are available 

16 (U.S. Census Bureau, 2011). 

17 (16) Individuals and families in poverty are 

18 more socially vulnerable to natural disasters, ex19 treme weather and impacts of climate change and 

20 have greater difficulty preparing for, responding to 

21 and recovering from such events (Oxfam America, 

22 2009). 

23 (17) Children who live in families who fall into 

24 poverty for even short periods of time are at greater 

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1 cational attainment, and increased reliance on public 

2 services and increased rates of incarceration (First 

3 Focus, 2008). 

4 (18) It is estimated that the additional 3 mil5 lion children who were forced into poverty due to the 

6 recession of 2008, resulted in $35 billion in eco7 nomic losses annually, and will cause at least $1.7 

8 trillion in economic losses to the United States dur9 ing their lifetimes (First Focus, 2008). 

10 (19) Reducing poverty, especially child poverty, 

11 not only reduces costs for Federal, State, and local 

12 social services and benefits programs, but also in13 creases tax revenue at all levels of government (Chil14 dren’s Defense Fund, 2009). 

15 (20) The House of Representatives, on January 

16 22, 2008, has resolved that it is the sense of Con17 gress that the United States should set a national 

18 goal of cutting poverty in half over the next 10 

19 years. 

20 SEC. 2202. DEFINITIONS. 

21 In this title: 

22 (1) FEDERAL AGENCY.—The term ‘‘Federal 

23 agency’’ means any executive department, Govern24 ment corporation, Government-controlled corpora25 tion, or other establishment in the executive branch 


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1 of the Government (including the Executive Office of 

2 the President), or any independent regulatory agen3 cy. 

4 (2) POVERTY.—The term ‘‘poverty’’ means an 

5 income level and living standard associated with and 

6 based on the official poverty measure as established 

7 and updated by the U.S. Census Bureau which es8 tablishes a threshold of minimum income necessary 

9 to achieve a standard of living free from deprivation 

10 of basic needs. 

11 (3) EXTREME POVERTY.—The term ‘‘extreme 

12 poverty’’ means having an income level or living 

13 standard at a level of extreme deprivation based on 

14 living with income below 50 percent of the Federal 

15 poverty line as established by the U.S. Census. 

16 (4) NEAR POVERTY.—The term ‘‘near poverty’’ 

17 means having a level of household income below 200 

18 percent of the Federal poverty line. 

19 (5) CHILD POVERTY.—The term ‘‘child pov20 erty’’ means poverty which impacts those persons 

21 under 18 years of age. 

22 (6) DEPRIVATION.—The term ‘‘deprivation’’ 

23 means lacking some or all basic human needs. 

24 (7) DECENT LIVING STANDARD.—The term 

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1 nual income that would allow an individual to live 

2 beyond deprivation at a safe and decent, but modest, 

3 standard of living. 

4 (8) ALTERNATIVE POVERTY MEASURES.—The 

5 term ‘‘alternative poverty measures’’ means meas6 ures and indicators, other than the traditional in7 come based measure of poverty, which can provide a 

8 more detailed picture of the low-income and poverty 

9 stricken populations, such as the number of people 

10 who were kept above poverty by Government sup11 ports, the number of people who are poor due to 

12 medical expenses, child care, and work expenses, the 

13 rates of food insecurity, the number of people who 

14 are asset poor (with less than three months of in15 come saved), the number of disconnected youth, teen 

16 birth rates, participation rates in Federal anti-pov17 erty programs for all eligible populations, and the 

18 number of people who are unbanked. 

19 (9) REGIONAL COSTS OF LIVING.—The term 

20 ‘‘regional costs of living’’ means a measure of the 

21 differing costs of maintaining a given living standard 

22 in varying regional, geographic, urban or rural re23 gions. 

24 (10) ECONOMIC INSECURITY.—The term ‘‘eco25 nomic insecurity’’ means the inability of individuals 


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1 and households to cope with routine adverse or cost2 ly life events and the lack of means to maintain a 

3 decent standard of living and to recover from the 

4 costly consequences of those events. 

5 (11) ECONOMIC STABILITY.—The term ‘‘eco6 nomic stability’’ means individuals and households 

7 have access to the means and support systems nec8 essary to effectively cope with adverse or costly life 

9 events and have the ability to effectively recover 

10 from the consequences of those events while main11 taining their standard of living or maintaining a de12 cent standard of living. 

13 (12) DIGITAL DIVIDE.—The term ‘‘digital di14 vide’’ means the gap between individuals, house15 holds, businesses and geographic areas at different 

16 socio-economic levels with regard to both their access 

17 information and communications technologies and 

18 including the imbalance both in physical access to 

19 technology and the resources, education and skills 

20 needed to effectively use computer technology and 

21 the Internet for a wide variety of activities. 

22 (13) OUTCOMES.—The term ‘‘outcomes’’ means 

23 change in the economic status, economic instability 

24 or economic security of an individual, household or 

25 other population which is attributable to a planned 


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1 intervention, benefit, or service or series of interven2 tions, benefits, and services, regardless of whether 

3 such an intervention was intended to change such 

4 economic status. 

5 (14) DISPARATE IMPACT.—The term ‘‘disparate 

6 impact’’ refers to the historic and ongoing impacts 

7 of the pattern and practice of discrimination in em8 ployment, education, housing, banking and nearly 

9 every other aspect of American life in the economy, 

10 society or culture that have an adverse impact on 

11 minorities, women, or other protected groups, re12 gardless of whether such practices were motivated by 

13 discriminatory intent. 

14 SEC. 2203. ESTABLISHMENT OF THE FEDERAL INTER15 AGENCY WORKING GROUP ON REDUCING 

16 POVERTY. 

17 (a) ESTABLISHMENT OF FEDERAL INTERAGENCY

18 WORKING GROUP ON REDUCING POVERTY.—There is es19 tablished within the Department of Health and Human 

20 Services, a Federal Interagency Working Group on Reduc21 ing Poverty, which shall be chaired by the Secretary of 

22 Health and Human Services, and whose members shall be 

23 selected by their respective agency heads from the senior 

24 ranks of their agencies, which shall— 


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1 (1) develop, within 180 days of enactment, a 

2 National Strategy to reduce the number of persons 

3 living in poverty in America in half within 10 years 

4 of the release of the 2012 Census report on Income, 

5 Poverty and Health Insurance Coverage in the 

6 United States: 2011, that includes goals and objec7 tives relating to— 

8 (A) reducing in half the number of Ameri9 cans living in poverty as reported by the 2012 

10 Census report on Income, Poverty and Health 

11 Insurance Coverage in the United States: 2011; 

12 (B) eliminating child poverty in America; 

13 (C) eliminating extreme poverty in Amer14 ica; 

15 (D) improving the effectiveness and out16 comes of poverty-related programs by improving 

17 our understanding of the root causes of poverty, 

18 the social, economic, and the cultural contribu19 tors to persistent intergenerational poverty; 

20 (E) improving the measure of poverty to 

21 include more indicators and measures that can 

22 meaningfully account for other aspects relating 

23 to the measure of poverty, such as regional dif24 ferences in costs of living, the impact of rising 

25 income inequality, the impact of the persistent 


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1 ‘‘digital divide’’, expanding the understanding 

2 of poverty by distinguishing a standard that 

3 measures a level of freedom from deprivation 

4 versus a standard that measures a standard of 

5 economic adequacy provided by a living wage 

6 and access to a decent living standard, and the 

7 impact of poverty on other measures of eco8 nomic stability and economic outcomes, such as 

9 educational attainment, rates of incarceration, 

10 lifetime earnings, access to health care, health 

11 care outcomes, access to housing, and including 

12 other measures as necessary to improve our un13 derstanding of why poverty persists in America; 

14 (F) eliminating the disparate rates of pov15 erty based on race, ethnicity, gender, age, or 

16 sexual orientation and identity, especially 

17 among children in those households so im18 pacted; 

19 (G) measuring effectiveness of poverty re20 lated programs on the basis of long-term out21 comes, including the long-term savings and 

22 value of preventive practice and policy, and em23 ploying fact-based measures of programs to 

24 make improvements; 


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1 (H) improving the accessibility of benefit 

2 and social services programs, reducing the com3 plexity and difficulty of enrollment, and improv4 ing the rates of enrollment in need based pro5 grams for all eligible recipients to maximize the 

6 impact of benefits and social services programs 

7 on reducing the impacts of poverty and improv8 ing economic outcomes; 

9 (I) making more uniform eligibility re10 quirements to improve the coordination of serv11 ice delivery, reduce gaps in eligibility, and im12 prove outcomes of programs addressing poverty 

13 in the Federal Government; 

14 (J) reducing the negative impacts of asset 

15 limits for eligibility which impact Federal, State 

16 and local poverty programs on the effectiveness 

17 of programs where limited eligibility creates 

18 gaps in necessary service and benefit delivery, 

19 and restricts access to benefits as individuals 

20 and families attempt to transition off of assist21 ance programs and which can prevent needy 

22 beneficiaries from improving long-term out23 comes and achieving long-term economic inde24 pendence from need-based programs; 


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1 (K) identifying Federal programs, includ2 ing those related to disaster relief, hazard miti3 gation, extreme weather and climate change, 

4 and necessary reforms to better target re5 sources towards disproportionately impacted so6 cially vulnerable, low-income and disadvantaged 

7 communities may provide greater socio-eco8 nomic benefits; 

9 (L) improving the ability of community10 based organizations to participate in the devel11 opment, oversight and implementation of Fed12 eral poverty-related programs; 

13 (M) improving access to good jobs with 

14 adequate wages and benefits by individuals liv15 ing in poverty, low-income households, and the 

16 unemployed; 

17 (N) expanding and stabilizing poor and 

18 low-income persons connection to work and ac19 cess to critical job training and/or skills up20 grade training that will lead to re-entry in the 

21 workforce; 

22 (O) developing a comprehensive strategy to 

23 connect low-income young people and to re-con24 nect currently disconnected youth to education, 

25 work, and their community; and 


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1 (P) shifting the focus of poverty and 

2 means-tested programs across the Federal Gov3 ernment beyond the relief of deprivation and in4 stead setting goals, measures, and outcomes 

5 more focused on measuring the success of pro6 grams in supporting and improving how capable 

7 individuals and families can access educational 

8 and economic opportunities to successfully tran9 sition away from accessing public assistance 

10 and benefits and achieving long-term economic 

11 stability which will reduce long-term costs in 

12 domestic social needs programs, reduce long13 term health care costs due to the improved 

14 health of formerly poverty stricken households, 

15 increase the number of taxpaying individuals 

16 which will increase revenue, and lower the en17 rollment and costs in need based benefits and 

18 services programs, thus improving the economy 

19 and reducing long-term deficits for Federal, 

20 State, and local governments; 

21 (2) oversee, coordinate, and integrate all poli22 cies and activities of the Federal Government, in co23 ordination and consultation with the Domestic Pol24 icy Council and the National Economic Council, 

25 across all agencies relating to reducing the number 


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1 of individuals, families, and children living below the 

2 Federal poverty line, in extreme poverty or near pov3 erty and increasing the number of households able 

4 to achieve long-term economic stability with assets 

5 sufficient to maintain a decent living standard with6 out relying on public supports— 

7 (A) economic, commercial, and pro8 grammatic policies that can effect or relieve the 

9 effects of poverty through job creation, and eco10 nomic development targeted to low-income, mi11 nority, rural, urban and other populations who 

12 suffer disparate rates of poverty, among Fed13 eral agencies; and 

14 (B) services and benefits including emer15 gency programs, discretionary economic pro16 grams, and other policies and activities nec17 essary to ensure that the Federal Government 

18 is able to mount effective responses to economic 

19 downturns and increases in the rates of poverty; 

20 (3) ensure that all relevant Federal agencies 

21 comply with appropriate guidelines, policies, and di22 rectives from the Federal Interagency Working 

23 Group on Reducing Poverty and the Department of 

24 Health and Human Services and other Federal 

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1 duction or improving economic stability and inde2 pendence; 

3 (4) ensure that Federal agencies, State govern4 ments and relevant congressional committees have 

5 access to, receive, and appropriately disseminate best 

6 practices in the administration of programs, have 

7 adequate resources to maximize the public awareness 

8 of programs, increase the reach of those programs, 

9 especially into historically disenfranchised commu10 nities, maximize enrollment for all eligible Ameri11 cans, share relevant data, and issue relevant guid12 ance in consultation with non-government organiza13 tions and policy experts in the field and State and 

14 local government officials who administer or direct 

15 policy for anti-poverty programs in increasing and 

16 maximizing the enrollment into and administration 

17 of programs and services designed to alleviate pov18 erty; 

19 (5) enact best practices for improved data col20 lection, relevant to— 

21 (A) reducing poverty; 

22 (B) reducing the racial, ethnic, age, gen23 der, and sexual orientation or sexual identity 

24 based disparities in the rates of poverty; 


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1 (C) adequately measuring the effectiveness, 

2 efficiency and impact of programs on the out3 comes for individuals, families and communities 

4 who receive benefits and services; 

5 (D) streamlining enrollment and eligibility 

6 for programs; 

7 (E) improving long-term outcomes for indi8 viduals who are enrolled in service and benefit 

9 programs; 

10 (F) reducing reliance on public programs; 

11 (G) improving connections to work; 

12 (H) improving economic stability; 

13 (I) improving savings and investment, ac14 cess to capital, increasing rates of entrepreneur15 ship; 

16 (J) improving our understanding of the 

17 impact of extreme weather and natural disas18 ters on economically vulnerable communities 

19 and improving those communities’ resilience to 

20 and recovery from extreme weather and natural 

21 disasters; 

22 (K) improving access to living wage em23 ployment; and 

24 (L) improving access to employment-based 

25 benefits; and 


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1 (6) study the feasibility of and test different 

2 interagency, State and local, public/private models of 

3 cooperative service and benefit delivery by creating 

4 necessary exemptions, waivers and funding sources 

5 to allow improved cooperation and innovation in the 

6 development of programs, practices, policies and pro7 cedures that advance the goal of reducing poverty 

8 and increasing economic opportunity. 

9 (b) DIRECTOR OF NATIONAL POVERTY POLICY.— 

10 There shall be a Staff Director of National Poverty Policy, 

11 who shall be the head of the Federal Interagency Working 

12 Group on Reducing Poverty. 

13 SEC. 2204. APPOINTMENT AND RESPONSIBILITIES OF THE 

14 DIRECTOR. 

15 (a) APPOINTMENT.— 

16 (1) IN GENERAL.—The Staff Director shall be 

17 appointed by the Secretary of Housing and Urban 

18 Development. 

19 (2) QUALIFICATIONS.—The Secretary shall ap20 point the Staff Director from among individuals who 

21 have demonstrated ability and knowledge in social 

22 policy, improving outcome based management, issues 

23 of equity and equal opportunity and access to serv24 ices and economic opportunity. 

25 (b) RESPONSIBILITIES.—The Staff Director shall— 


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1 (1) advise the Secretary and all relevant cabinet 

2 secretaries, and agency officials regarding the estab3 lishment of policies, goals, objectives, and priorities 

4 for reducing poverty in America in half in ten years, 

5 ending child poverty, ending extreme poverty and 

6 eliminating racial, ethnic, gender, and sexual iden7 tity and orientation based disparities in the rates of 

8 poverty; 

9 (2) advise the Secretary, when directed by the 

10 Secretary, advise relevant cabinet secretaries, heads 

11 of independent Federal agencies and other entities 

12 within the Executive Office of the President regard13 ing mechanisms to improve the effectiveness, coordi14 nation, impact, and outcomes of social services, ben15 efits, and other poverty reduction and economic op16 portunity programs, in collaboration with experts in 

17 the field, non-governmental organizations, and other 

18 governments; 

19 (3) work with Federal agencies to oversee, co20 ordinate, and integrate the implementation of the 

21 National Plan or Strategy, including consultation 

22 with independent non-governmental policy experts 

23 and service provider groups engaged in serving low24 income persons, children and households, State and 

25 local government officials who administer or direct 


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1 policy for anti-poverty programs, and with as many 

2 groups that directly represent low-income people, 

3 such as public housing tenants’ associations, or 

4 other similar groups; and 

5 (4) resolve any disputes that arise between Fed6 eral agencies relating to the National Plan to reduce 

7 poverty in half in ten years or other matters within 

8 the responsibility of the Office. 

9 SEC. 2205. CONSULTATION. 

10 (a) IN GENERAL.—The Director may consult and ob11 tain recommendations from, as needed, such Presidential 

12 and other advisory entities such as consultation with inde13 pendent non-governmental policy experts and service pro14 vider groups engaged in serving low-income persons, chil15 dren, and households; State and local government officials 

16 who administer or direct policy for anti-poverty programs, 

17 and groups made up of low-income people, such as public 

18 housing tenants’ associations, or other similar groups as 

19 the Director determines will assist in carrying out the mis20 sion of the Office, including, but not limited to— 

21 (1) the Administration for Children and Fami22 lies (ACF); 

23 (2) the Administration on Aging (AoA); 

24 (3) the Department of Agriculture (USDA); 

25 (4) the Bankruptcy Courts; 


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1 (5) the Bureau of Consumer Financial Protec2 tion; 

3 (6) the Bureau of Economic Analysis (BEA); 

4 (7) the Bureau of Indian Affairs (BIA); 

5 (8) the Bureau of the Census; 

6 (9) the Center for Nutrition Policy and Pro7 motion; 

8 (10) the Centers for Medicare & Medicaid Serv9 ices (formerly the Health Care Financing Adminis10 tration); 

11 (11) the Commission on Civil Rights; 

12 (12) the Office of Community Planning and 

13 Development; 

14 (13) the Consumer Financial Protection Bu15 reau; 

16 (14) the Coordinating Council on Juvenile Jus17 tice and Delinquency Prevention; 

18 (15) the Corporation for National and Commu19 nity Service; 

20 (16) the Council of Economic Advisers; 

21 (17) the Department of Agriculture (USDA); 

22 (18) the Department of Commerce (DOC); 

23 (19) the Department of Defense (DOD); 

24 (20) the Department of Education (ED); 


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1 (21) the Department of Health and Human 

2 Services (HHS); 

3 (22) the Department of Housing and Urban 

4 Development (HUD); 

5 (23) the Department of Justice (DOJ); 

6 (24) the Department of Labor (DOL); 

7 (25) the Department of the Treasury; 

8 (26) the Department of Transportation (DOT); 

9 (27) the Department of Veterans Affairs (VA); 

10 (28) the Disability Employment Policy Office; 

11 (29) the Domestic Policy Council; 

12 (30) the Drug Enforcement Administration 

13 (DEA); 

14 (31) the Economic Development Administra15 tion; 

16 (32) the Economic Research Service; 

17 (33) the English Language Acquisition Office; 

18 (34) the Equal Employment Opportunity Com19 mission (EEOC); 

20 (35) the Fair Housing and Equal Opportunity; 

21 (36) the Federal Bureau of Prisons; 

22 (37) the Federal Housing Finance Board; 

23 (38) the Federal Labor Relations Authority; 

24 (39) the Federal Trade Commission (FTC); 

25 (40) the Food and Nutrition Service; 


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1 (41) the Indian Health Service; 

2 (42) the Interagency Council on Homelessness; 

3 (43) the Internal Revenue Service (IRS); 

4 (44) the Legal Services Corporation; 

5 (45) the National AIDS Policy Office; 

6 (46) the National Credit Union Administration; 

7 (47) the National Economic Council; 

8 (48) the National Institutes of Health (NIH); 

9 (49) the National Labor Relations Board; 

10 (50) the Occupational Safety & Health Admin11 istration (OSHA); 

12 (51) the Office of Management and Budget 

13 (OMB); 

14 (52) the Office of Refugee Resettlement; 

15 (53) the Office of Policy Development and Re16 search (Housing and Urban Development Depart17 ment); 

18 (54) the Small Business Administration (SBA); 

19 (55) the Social Security Administration (SSA); 

20 (56) the Substance Abuse and Mental Health 

21 Services Administration; 

22 (57) the Veterans’ Employment and Training 

23 Service; and 

24 (58) the Women’s Bureau (Labor Department). 


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1 (b) NATIONAL STRATEGY.—In developing and updat2 ing the National Strategy the Executive Director shall 

3 consult with the Domestic Policy Council, the National 

4 Economic Council, and, as appropriate, hold regional pub5 lic hearings around the country to collect information and 

6 feedback from the public on their efforts and experience 

7 for the development and updating of the National Strategy 

8 and make this information available to the public. 

9 SEC. 2206. REPORTS TO CONGRESS AND THE PUBLIC. 

10 (a) IN GENERAL.—The Chair of the Federal Inter11 agency Working Group on Reducing Poverty shall submit 

12 an annual report to the appropriate congressional commit13 tees describing the activities, ongoing projects, and plans 

14 of the Federal Government designed to meet the goals and 

15 objectives of the National Strategy on Poverty. The report 

16 shall include an accounting of the savings to the Govern17 ment from any increased efficiencies in the delivery of 

18 services, any savings from reducing the numbers of Ameri19 cans living in poverty and reductions in the demand for 

20 need-based services and benefits for which persons living 

21 in and near poverty are eligible, as well as an accounting 

22 of any increase in revenue collections due to the numbers 

23 of persons who become gainfully employed and pay taxes 

24 into the Treasury instead of drawing benefits and services 

25 from it. 


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1 (b) NATIONAL ACADEMY OF SCIENCES WORK2 SHOP.—Within 90 days after funds are made available to 

3 carry out this title, the Secretary of Health and Human 

4 Services shall contract with the National Academy of 

5 Sciences (hereinafter in this subsection referred to as the 

6 ‘‘NAS’’) to initiate a workshop series to provide necessary 

7 background information to enable the Working Group on 

8 Reducing Poverty to develop and finalize its plan. 

9 (1) The NAS shall convene a steering com10 mittee to organize, plan, and conduct a public work11 shop on what is known about the economic and so12 cial costs of poverty, including, but not limited to 

13 the following: 

14 (A) Macroeconomic costs (effects on pro15 ductivity and economic output). 

16 (B) Health costs (effects on health expend17 itures and health status). 

18 (C) Crime and other social costs. 

19 (D) Direct Federal budget effects (e.g., 

20 outlays for income support and other poverty 

21 reduction programs). 

22 (E) Natural disaster related risks and 

23 costs. 

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1 rity, and other measures of deprivation), and 

2 their role in assessing the effects of poverty and 

3 the performance of anti-poverty programs. 

4 The NAS shall commission experts to prepare pa5 pers that summarize and critique the relevant lit6 erature estimating monetary and non-monetary eco7 nomic and social impacts of poverty. A workshop 

8 summary shall be produced that, along with the pa9 pers, shall be available electronically on the NAS 

10 website. This workshop shall be convened within 6 

11 months of receipt of a contract, the papers posted 

12 immediately, and the summary released by the end 

13 of month. 

14 (2) The NAS steering committee shall organize, 

15 plan, and conduct a second public workshop on what 

16 is known about the economic and social costs and 

17 benefits of a variety of programs and strategies to 

18 reduce and prevent poverty. It shall take account of 

19 such issues as the following: 

20 (A) Short-term versus long-term effects, 

21 including budget implications. 

22 (B) Effects for different population 

23 groups, such as children, the elderly, immi24 grants, long-term single-parent families, dis25 placed older workers, young people with large 


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1 loans, people in areas of concentrated poverty 

2 and other social ills (e.g., Indian reservations, 

3 some inner city areas, some rural areas). 

4 (C) Effects by depth of poverty and near5 poverty (e.g., income to poverty ratios of less 

6 than 50 percent, less than 100 percent, less 

7 than 200 percent). 

8 This second workshop shall be convened within 9 

9 months of receipt of a contract, the papers posted 

10 immediately, and a summary released by the end of 

11 month 12. 

12 (c) REPORT.—The relevant sections of the report 

13 shall be posted on each agency’s website on the plans and 

14 impacts specific to their agency. 

15 (d) PUBLIC REPORT.—A version of each report sub16 mitted under this section shall be made available to the 

17 public. 

18 (e) LEGISLATIVE LANGUAGE.—The Working Group 

19 on Reducing Poverty shall submit, as necessary, legislative 

20 language, including specific legislative recommendations to 

21 the Congress of the United States towards achieving the 

22 national goals. 

Æ 


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