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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4856 Introduced in House (IH)]

108th CONGRESS
  2d Session
                                H. R. 4856

   To provide States with improved incentives, more flexibility, and 
increased funds to develop child welfare services that meet the unique 
  needs of children and families and enhance children's prospects for 
                safe and permanent living arrangements.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 19, 2004

 Mr. Herger (for himself, Mrs. Johnson of Connecticut, Mr. DeLay, Mr. 
 Lewis of Kentucky, Mr. Camp, and Mr. Cantor) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
   To provide States with improved incentives, more flexibility, and 
increased funds to develop child welfare services that meet the unique 
  needs of children and families and enhance children's prospects for 
                safe and permanent living arrangements.

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

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Child Safety, 
Adoption, and Family Enhancement (Child SAFE) Act of 2004''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Findings.
Sec. 3. References.
 TITLE I--EXPANDED ELIGIBILITY FOR ADOPTION ASSISTANCE AND FOSTER CARE

Sec. 101. Adoption assistance.
Sec. 102. Foster care maintenance payments.
Sec. 103. Eligibility of Indian tribes to receive Federal funds for 
                            foster care and adoption assistance.
    TITLE II--FLEXIBLE FUNDS TO IMPROVE PROTECTION FOR CHILDREN AND 
                          STRENGTHEN FAMILIES

Sec. 201. Safe Children, Strong Families programs.
Sec. 202. Challenge grants.
       TITLE III--ENHANCEMENTS TO CHILD WELFARE WAIVER AUTHORITY

Sec. 301. Extension of authority to approve demonstration projects.
Sec. 302. Elimination of limitation on number of waivers.
Sec. 303. Elimination of limitation on number of States that may be 
                            granted waivers to conduct demonstration 
                            projects on same topic.
Sec. 304. Elimination of limitation on number of waivers that may be 
                            granted to a single State for demonstration 
                            projects.
Sec. 305. Streamlined process for consideration of amendments to and 
                            extensions of demonstration projects 
                            requiring waivers.
Sec. 306. Availability of reports.
                   TITLE IV--TANF AND SSI PROVISIONS

Sec. 401. TANF high performance bonus.
Sec. 402. Review of State agency blindness and disability 
                            determinations.
           TITLE V--EFFECTIVE DATE AND TRANSITION PROVISIONS

Sec. 501. Effective date; transition rule.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) Foster care should be a temporary, short-term placement 
        for children until they can be reunified with their parents or 
        placed with a safe, adoptive family. However, the 532,454 
        children in foster care on September 30, 2002, have been in 
        foster care for an average of almost 3 years (32 months).
            (2) At the end of fiscal year 2002, the case plan goal for 
        over 34,000 foster care children was to remain in foster care 
        until they turned 18. These children will leave the foster care 
        system without the stability and permanency of a family.
            (3) Since 1995, the number of children adopted with child 
        welfare agency involvement has more than doubled from 25,693 to 
        52,546 in 2002. Despite this achievement, there were 129,262 
        children waiting to be adopted on September 30, 2002. On 
        average, these children have been waiting in foster care for 
        almost 4 years (44 months).
            (4) On March 26, 2004, the Department of Health and Human 
        Services completed an initial review in every State of their 
        child welfare programs. No State passed this review which 
        assessed whether States were in compliance with Federal 
        requirements to ensure the safety, permanency, and well-being 
        of vulnerable children.
            (5) On May 18, 2004, the nonpartisan Pew Commission on 
        Children in Foster Care composed of former Members of Congress 
        of both parties and other child welfare experts recommended 
        overhauling the Nation's foster care system to provide States a 
        flexible, reliable source of Federal funding, as well as new 
        options and incentives to seek safety and permanence for 
        children in foster care.

SEC. 3. REFERENCES.

    Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the amendment or repeal shall be 
considered to be made to a section or other provision of the Social 
Security Act.

 TITLE I--EXPANDED ELIGIBILITY FOR ADOPTION ASSISTANCE AND FOSTER CARE

SEC. 101. ADOPTION ASSISTANCE.

    (a) Elimination of Income Eligibility Requirement.--Section 473(a) 
(42 U.S.C. 673(a)) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2)(A) For purposes of paragraph (1)(B)(ii), a child 
        meets the requirements of this paragraph if the child--
                    ``(i)(I) at the time adoption proceedings were 
                initiated, had been removed from his or her home--
                            ``(aa) pursuant to a voluntary placement 
                        agreement with respect to which Federal 
                        payments are provided under section 474; or
                            ``(bb) as a result of a judicial 
                        determination to the effect that continuation 
                        therein would be contrary to the welfare of the 
                        child, including such a determination made on 
                        account of a voluntary relinquishment;
                    ``(II) is eligible for supplemental security income 
                benefits under title XVI; or
                    ``(III) was residing in a foster family home or 
                child care institution with the child's minor parent as 
                described in section 475(4)(B); and
                    ``(ii) has been determined by the State, pursuant 
                to subsection (c), to be a child with special needs.
                    ``(B) A child who meets the requirements of 
                subparagraph (A)(ii) of this paragraph, who was 
                determined eligible for adoption assistance payments 
                under this part with respect to a prior adoption, and 
                who is available for adoption because the prior 
                adoption has been dissolved and the parental rights of 
                the adoptive parents have been terminated or because 
                the child's adoptive parents have died, shall be 
                treated as meeting the requirements of this paragraph 
                for purposes of paragraph (1)(B)(ii).''; and
            (2) by adding at the end the following:
            ``(7)(A) Notwithstanding any other provision of this 
        subsection (except as provided in subparagraph (B)), payments 
        may not be made under this part to parents with respect to--
                    ``(i) a child who is adopted outside of the United 
                States; or
                    ``(ii) a child who is adopted in the United States 
                after having been been brought into the United States 
                for the purpose of being adopted.
            ``(B) Subparagraph (A) shall not be interpreted to prohibit 
        payments for a child who is otherwise eligible for adoption 
        assistance payments under section 473 and who, as a result of 
        the disruption or dissolution (as determined by the State) of 
        an adoption, or because of the death of the adoptive parents of 
        the child, is subsequently available for adoption.''.
    (b) Reduction in Federal Matching Rate to Expand Eligibility.--
Section 474(a)(2) (42 U.S.C. 674(a)(1)) is amended by inserting ``85 
percent of'' before ``the Federal''.

SEC. 102. FOSTER CARE MAINTENANCE PAYMENTS.

    (a) Elimination of Income Eligibility Requirement.--
            (1) In general.--Section 472(a) (42 U.S.C. 672(a)) is 
        amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``child'' and all that follows through ``if'' 
                and inserting ``child, if'';
                    (B) in paragraph (1)--
                            (i) by striking ``from the home'' and 
                        inserting ``of the child from his or her 
                        home''; and
                            (ii) by striking ``(effective October 1, 
                        1983)'';
                    (C) by adding ``and'' at the end of paragraph (2);
                    (D) in paragraph (3), by striking ``; and'' and 
                inserting a period; and
                    (E) by striking all that follows paragraph (3).
            (2) Conforming amendment.--Section 470 (42 U.S.C. 670) is 
        amended by striking ``who otherwise would have been eligible 
        for assistance under the State's plan approved under part A (as 
        such plan was in effect on June 1, 1995)''.
    (b) Reduction in Federal Matching Rate to Expand Eligibility.--
Section 474(a)(1) (42 U.S.C. 674(a)(1)) is amended by inserting ``65 
percent of'' before ``the Federal''.
    (c) Guaranteed Foster Care Maintenance Payment Levels.--
            (1) In general.--Section 474 of such Act (42 U.S.C. 674) is 
        amended--
                    (A) in subsection (a)(1), by inserting ``, subject 
                to subsection (g)'' before the semicolon; and
                    (B) by adding at the end the following:
    ``(g) Guaranteed Foster Care Maintenance Payment Levels.--
            ``(1) Foster care maintenance payment levels.--The amount 
        described in this paragraph is--
                    ``(A) $1,836,000,000 in the case of fiscal year 
                2005;
                    ``(B) $1,882,000,000 in the case of fiscal year 
                2006, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii);
                    ``(C) $1,927,000,000 in the case of fiscal year 
                2007, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii);
                    ``(D) $1,971,000,000 in the case of fiscal year 
                2008, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii);
                    ``(E) $2,014,000,000 in the case of fiscal year 
                2009, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii);
                    ``(F) $2,056,000,000 in the case of fiscal year 
                2010, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii);
                    ``(G) $2,097,000,000 in the case of fiscal year 
                2011, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii);
                    ``(H) $2,136,000,000 in the case of fiscal year 
                2012, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii);
                    ``(I) $2,173,000,000 in the case of fiscal year 
                2013, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii); 
                and
                    ``(J) $2,210,000,000 in the case of fiscal year 
                2014, increased by the total of the amounts (if any) by 
                which the levels set by paragraph (3)(A) for the fiscal 
                year are increased by reason of paragraph (3)(A)(ii).
            ``(2) Reservation of funds for the territories and indian 
        tribes.--For each fiscal year, from the dollar amount specified 
        in paragraph (1) of this subsection for the fiscal year, the 
        Secretary shall reserve for payments under this part--
                    ``(A) for Puerto Rico, Guam, the Northern Mariana 
                Islands, American Samoa, and the United States Virgin 
                Islands, a total sum equal to 0.9 percent of the dollar 
                amount so specified; and
                    ``(B) for Indian tribes, a total sum equal to 0.9 
                percent of the dollar amount so specified, increased by 
                the amount (if any) by which the total sum reserved 
                under this subparagraph for the preceding fiscal year 
                exceeds the total of the amounts payable to Indian 
                tribes under subsection (a)(1) for the preceding fiscal 
                year.
            ``(3) Funds for the states.--
                    ``(A) In general.--The aggregate of the amounts 
                payable to a State under subsection (a)(1) for a fiscal 
                year shall not exceed the sum of--
                            ``(i)(I) in the case of a State not 
                        specified in paragraph (2)(A) of this 
                        subsection, the State share of the dollar 
                        amount specified in paragraph (1) of this 
                        subsection for the fiscal year that remains 
                        after applying paragraph (2) of this 
                        subsection; or
                            ``(II) in the case of a State specified in 
                        paragraph (2)(A) of this subsection, the State 
                        share of the total sum described in such 
                        paragraph (2)(A) for the fiscal year; and
                            ``(ii) if the State does not make the 
                        election provided for in subparagraph (C) of 
                        this paragraph for the fiscal year, the amount 
                        (if any) by which the level set by this 
                        subparagraph with respect to the State for the 
                        preceding fiscal year exceeds the total amount 
                        payable to the State under subsection (a)(1) 
                        for such preceding fiscal year.
                    ``(B) State share defined.--In subparagraph (A) of 
                this paragraph, the term `State share' means, with 
                respect to a State, the percentage that equals--
                            ``(i) in the case of a State not specified 
                        in paragraph (2)(A) of this subsection--
                                    ``(I) the aggregate of the amounts 
                                payable to the State under subsection 
                                (a)(1) for all calendar quarters in 
                                fiscal year 2003; divided by
                                    ``(II) the aggregate of the amounts 
                                so payable to all States not so 
                                specified; or
                            ``(ii) in the case of a State specified in 
                        paragraph (2)(A) of this subsection--
                                    ``(I) the total number of children 
                                in the State who have not attained 21 
                                years of age; divided by
                                    ``(II) the total number of such 
                                children in all States so specified.
                    ``(C) Election to spend excess foster care funds on 
                child welfare services.--A State may elect to require 
                the Secretary to add the amount of the excess (if any) 
                described in subparagraph (A)(ii) with respect to the 
                State for a fiscal year to the State allotment under 
                section 423 for the next fiscal year and to the amount 
                otherwise available for payment to the State under 
                section 424 for the next fiscal year.
            ``(4) Funds for indian tribes.--The aggregate of the 
        amounts payable to Indian tribes under subsection (a)(1) for a 
        fiscal year shall not exceed the amount reserved under 
        paragraph (2)(B) of this subsection for the fiscal year.''.
            (2) Conforming amendments.--
                    (A) Section 1101(a)(1) (42 U.S.C. 1301(a)(1)) is 
                amended by adding at the end the following: ``Such term 
                when used in part E of title IV also includes the 
                Northern Mariana Islands.''.
                    (B) Section 1108 (42 U.S.C. 1308) is amended in 
                each of subsections (a) and (b)(1), by striking ``parts 
                A and E'' and inserting ``part A''.
    (d) Availability of Additional Funding for States Experiencing a 
Severe Foster Care Crisis.--Section 474 (42 U.S.C. 674), as amended by 
subsection (c)(1)(B) of this section, is amended by adding at the end 
the following:
    ``(h) Availability of Additional Funding for States Experiencing a 
Severe Foster Care Crisis.--
            ``(1) In general.--On request of a State with a plan 
        approved under part E for a fiscal year, the Secretary shall, 
        subject to paragraph (4) of this subsection, pay to the State 
        from the Contingency Fund established under section 403(b) an 
        amount equal to the Federal share of a sum certain if--
                    ``(A) the State is experiencing a severe foster 
                care crisis, as determined by the Secretary from the 
                documentation and certifications referred to in 
                subparagraph (B) of this paragraph;
                    ``(B) the Governor of the State (or an authorized 
                designee of the Governor) provides the documentation 
                and certifications described in paragraph (3) of this 
                subsection with respect to the circumstances 
                constituting the severe foster care crisis in the 
                State;
                    ``(C) the State makes a binding commitment to the 
                Secretary to expend from State or local sources during 
                the fiscal year an amount equal to the State share of 
                the sum certain in a manner consistent with the child 
                welfare purposes of part B and this part;
                    ``(D) the amount so payable to the State does not 
                exceed 20 percent of the total amount payable to the 
                State under section 474(a)(1) for the fiscal year; and
                    ``(E) the State has expended, for foster care 
                maintenance payments under section 472 for children in 
                foster family homes or child-care institutions, all 
                amounts paid to the State under section 474(a)(1).
            ``(2) Definitions.--In paragraph (1):
                    ``(A) Severe foster care crisis.--The term `severe 
                foster care crisis' means, with respect to a State, 
                that--
                            ``(i)(I) the average number of children in 
                        foster care under the responsibility of the 
                        State on the last day of the most recent 6-
                        month period for which such information is 
                        available has increased by a total of at least 
                        15 percent over the greatest average for the 
                        corresponding period in calendar year 2004 or 
                        thereafter; and
                            ``(II) the average total number of children 
                        in the United States who are in foster care 
                        under the responsibility of any State on the 
                        last day of the most recent 6-month period for 
                        which such information is available has 
                        increased by a total of at least 10 percent 
                        over the greatest average for the corresponding 
                        period in calendar year 2004 or thereafter; or
                            ``(ii) the average number described in 
                        clause (i)(I) has increased by a total of at 
                        least 20 percent over the greatest average for 
                        the corresponding period in calendar year 2004 
                        or thereafter.
                    ``(B) Federal share.--The term `Federal share' 
                means 65 percent of the Federal medical assistance 
                percentage (as defined in section 1905(b)).
                    ``(C) State share.--The term `State share' means 
                100 percent minus the Federal share.
            ``(3) Documentation and certifications.--The documentation 
        and certifications described in this clause are the following:
                    ``(A) Documentation which demonstrates that the 
                State is experiencing a severe foster care crisis.
                    ``(B) Documentation of the nature and cause of the 
                circumstances constituting the severe foster care 
                crisis.
                    ``(C) Documentation of the measures that were taken 
                by the State, before seeking funds from the Contingency 
                Fund for State Welfare Programs, to avoid or address 
                the circumstances constituting the severe foster care 
                crisis.
                    ``(D) Documentation of the manner in which any 
                funds provided to the State under this section from the 
                Contingency Fund for State Welfare Programs and State 
                matching funds described in paragraph (1)(C) will be 
                used to address the circumstances constituting the 
                severe foster care crisis in the State.
                    ``(E) A certification that any funds provided to 
                the State under this subsection from the Contingency 
                Fund for State Welfare Programs will be used in a 
                manner consistent with this part.
            ``(4) Maximum contingency fund payments.--The total of the 
        amounts payable to all States under this subsection shall not 
        exceed the total amount appropriated under section 403(b)(2) 
        minus the total amount (if any) paid to States under section 
        403(b)(3)(A).''.
    (e) Flexibility to Establish Separate Standards for Relative Foster 
Family Homes.--Section 471(a)(10) (42 U.S.C. 671(a)(10)) is amended by 
inserting before the semicolon the following: ``, and that the 
authority or authorities may--
            ``(A) establish and maintain separate standards for foster 
        family homes in which a foster parent is a relative of the 
        foster child, that, at a minimum, protect the safety of the 
        child and provide for criminal records checks as described in 
        paragraph (20); and
            ``(B) apply the standards referred to in subparagraph (A) 
        of this paragraph to any such relative foster care provider to 
        whom funds are paid pursuant to section 472 or part B in lieu 
        of the standards that would otherwise apply to a foster family 
        home.''.
    (f) Child Well-Being Assessments for Foster Children.--
            (1) In general.--Section 475(5) (42 U.S.C. 675(5)) is 
        amended--
                    (A) in subparagraph (C)--
                            (i) by striking ``(F)'' and inserting 
                        ``(G)''; and
                            (ii) by striking ``(A)(ii)'' and inserting 
                        ``(B)(ii)'';
                    (B) in subparagraph (D), by striking ``(1)(A)'' and 
                inserting ``(1)(C)'';
                    (C) by redesignating subparagraphs (A) through (G) 
                as subparagraphs (B) through (H), respectively; and
                    (D) by inserting before such subparagraphs the 
                following:
                    ``(A) within 30 days after being removed from his 
                or her home, each child will have had an assessment of 
                his or her physical and mental health needs, to 
                identify, at a minimum, physical or emotional trauma, 
                substance abuse, or other issues that are to be 
                addressed as part of the child's case plan to ensure 
                the child's positive development and well-being;''.
            (2) Conforming amendments.--Section 471(a) (42 U.S.C. 
        671(a)) is amended--
                    (A) in paragraph (15)(E)(i), by striking 
                ``475(5)(C)'' and inserting ``475(5)(D)''; and
                    (B) in paragraph (16), by striking ``475(5)(B)'' 
                and inserting ``475(5)(C)''.
    (g) Medicaid Eligibility for Foster Children.--The first sentence 
of section 472(h)(1) (42 U.S.C. 672(h)(1)) is amended--
            (1) by striking ``are made under this section'' and 
        inserting ``have been made under this section since before 
        October 1, 2004, and without interruption thereafter''; and
            (2) by inserting ``, and any other child with respect to 
        whom such payments are made whose resources (determined 
        pursuant to section 402(a)(7)(B), as so in effect) have a 
        combined value of not more than $10,000 shall be considered to 
        be a child whose resources have a combined value of not more 
        than $1,000 (or such lower amount as the State may determine 
        for purposes of such section 402(a)(7)(B))'' before the period.

SEC. 103. ELIGIBILITY OF INDIAN TRIBES TO RECEIVE FEDERAL FUNDS FOR 
              FOSTER CARE AND ADOPTION ASSISTANCE.

    (a) Children Placed in Tribal Custody Eligible for Foster Care 
Funding.--Section 472(a)(2) (42 U.S.C. 672(a)(2)) is amended--
            (1) by striking ``or (B)'' and inserting ``(B)''; and
            (2) by inserting before the semicolon the following: ``, or 
        (C) an Indian tribe (as defined in section 479B(d)) or an 
        intertribal consortium if the Indian tribe or consortium is not 
        operating a program pursuant to section 479B and (i) has a 
        cooperative agreement with a State pursuant to section 
        479B(c)(5) or (ii) submits to the Secretary a description of 
        the arrangements (jointly developed or developed in 
        consultation with the State) made by the Indian tribe or 
        consortium for the payment of funds and the provision of the 
        child welfare services and protections required by this 
        title''.
    (b) Programs Operated by Indian Tribal Organizations.--Part E of 
title IV (42 U.S.C. 670 et seq.) is amended by adding at the end the 
following:

``SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL ORGANIZATIONS.

    ``(a) In General.--Except as otherwise expressly provided in this 
part, this part shall apply to an Indian tribe that elects to operate a 
program under this part in the same manner as this part applies to a 
State.
    ``(b) Exceptions.--An Indian tribe shall not be eligible for 
payments under paragraph (3) or (4) of section 474(a), and section 477 
shall not apply to an Indian tribe.
    ``(c) Special Rules.--
            ``(1) Applications.--In order for an Indian tribe to be 
        eligible for funds under this part for a fiscal year, the tribe 
        (alone or as part of a consortium of Indian tribes) shall--
                    ``(A) submit to the Secretary an application which, 
                in addition to the matter required by section 471(a), 
                contains--
                            ``(i) a plan which, in lieu of the 
                        requirement of section 471(a)(3), identifies 
                        the service area or areas and population to be 
                        served by the Indian tribe; and
                            ``(ii) assurances that the tribe will--
                                    ``(I) operate a pre-placement 
                                preventive services program designed to 
                                help children at risk of foster care 
                                placement remain safely in their homes, 
                                and a foster care program for children 
                                who cannot remain at home safely;
                                    ``(II) provide, or make 
                                arrangements with a State or the Bureau 
                                of Indian Affairs to provide, a system 
                                for child abuse and neglect reporting 
                                and prevention, adoption assistance or 
                                other permanency supports, and 
                                independent living services;
                                    ``(III) use any funds provided to 
                                the tribe under this part to supplement 
                                and not supplant non-Federal funds that 
                                would otherwise be available for the 
                                activities and purposes of the plan; 
                                and
                                    ``(IV) submit to the Secretary 
                                case-level data on the children in 
                                foster care or adopted with the 
                                involvement of the agency carrying out 
                                the plan, consistent with the 
                                requirements under the data collection 
                                system implemented under section 479;
                    ``(B) have in effect legal codes that govern tribal 
                responsibility for the protection of children, provide 
                for tribal placement and care responsibility for 
                children that cannot remain safely at home, and define 
                tribal authority for judicial proceedings and judicial 
                determinations that continuation in the home would be 
                contrary to the welfare of a child, judicial 
                determinations regarding reasonable efforts described 
                in section 471(a)(15), and permanency decisions; and
                    ``(C) have not less than 3 years of financial 
                stability and management as evidenced by having no 
                uncorrected significant and material audit exceptions 
                under Federal grants or contracts.
            ``(2) Approval.--The Secretary may approve an application 
        and plan submitted pursuant to paragraph (1) if the Secretary 
        determines that the application meets the requirements of 
        paragraph (1), consistent with the purposes of this part.
            ``(3) Authority to waive or modify certain requirements.--
                    ``(A) Waiver authority.--On the request of an 
                Indian tribe, the Secretary may modify any requirement 
                imposed by or under section 471 if, after consulting 
                with the tribe, the Secretary determines that the 
                modification would advance the best interests and the 
                safety of children served by the tribe.
                    ``(B) Authority to modify data reporting 
                requirement.--In lieu of the requirement for case-level 
                data referred to in paragraph (1)(A)(ii)(IV) with 
                respect to children served by an Indian tribe pursuant 
                to this part, the Secretary may require aggregate data 
                with respect to children who are in foster care or 
                adopted with the involvement of the agency 
                administering the plan.
            ``(4) Calculation of per capita income in determining 
        federal share.--
                    ``(A) In general.--For purposes of determining the 
                Federal medical assistance percentage applicable to an 
                Indian tribe under paragraphs (1) and (2) of section 
                474(a), the calculation of the per capita income of the 
                tribe shall be based upon the service population of the 
                tribe as defined in its plan.
                    ``(B) Consideration of other information.--An 
                Indian tribe may submit to the Secretary such 
                information as the Indian tribe considers relevant to 
                the calculation of the per capita income of the tribe, 
                and the Secretary shall consider such information 
                before making the calculation.
            ``(5) Cooperative agreements.--An Indian tribe or 
        intertribal consortium and a State may enter into a cooperative 
        agreement for the administration or payment of funds pursuant 
        to this part. In any case where an Indian tribe or intertribal 
        consortium and a State enter into a cooperative agreement that 
        incorporates any of the provisions of this section, those 
        provisions shall be valid and enforceable. Any such cooperative 
        agreement that is in effect as of the date of enactment of this 
        section, shall remain in full force and effect subject to the 
        right of either party to the agreement to revoke or modify the 
        agreement pursuant to the terms of the agreement.
    ``(d) Definitions of Indian Tribe; Tribal Organizations.--In this 
section, the terms `Indian tribe' and `tribal organization' have the 
meanings given in paragraphs (5) and (10), respectively, of section 
430(a).''.

    TITLE II--FLEXIBLE FUNDS TO IMPROVE PROTECTION FOR CHILDREN AND 
                          STRENGTHEN FAMILIES

SEC. 201. SAFE CHILDREN, STRONG FAMILIES PROGRAMS.

    (a) In General.--Part B of title IV (42 U.S.C. 620-629i) is amended 
to read as follows:

           ``PART B--SAFE CHILDREN, STRONG FAMILIES PROGRAMS

``SEC. 421. PURPOSE.

    ``The purpose of this part is to provide States and Indian tribes 
with the resources and flexibility to--
            ``(1) develop and provide child welfare services that 
        ensure safety, permanence, and well-being for children;
            ``(2) provide support and other services to families to 
        prevent the unnecessary removal of children from their homes;
            ``(3) provide support and enhance the capacity of relatives 
        to meet the needs of children in their care;
            ``(4) develop, establish, and operate coordinated programs 
        of community-based family support services, family preservation 
        services, time-limited reunification services, and adoption 
        promotion and support services;
            ``(5) improve the quality of child welfare services by 
        providing for the training of individuals responsible for 
        decisions related to the well-being of children including 
        foster and adoptive parents, child welfare workers, and court 
        personnel;
            ``(6) operate a system for receiving reports of child abuse 
        or neglect;
            ``(7) improve the intake, assessment, screening, and 
        investigation of reports of child abuse and neglect;
            ``(8) provide child placement services and make timely 
        decisions about permanent living arrangements for children who 
        must be removed from or who cannot live with their families; 
        and
            ``(9) provide for the proper and efficient administration 
        of the State or tribal plan under this part and part E.

``SEC. 422. PLANS OF STATES AND INDIAN TRIBES.

    ``(a) States.--In order to be eligible for a grant under this part 
for a fiscal year, a State shall have in effect a plan to achieve the 
purposes of this part, which has been developed jointly by the 
Secretary and the State, after consultation by the State agency 
designated pursuant to paragraph (1)(A) of this subsection with 
appropriate public and non-profit private agencies and community-based 
organizations with experience in administering programs of services for 
children and families, and which--
            ``(1) provides that--
                    ``(A) the agency that administers or supervises the 
                administration of the State's services program under 
                title XX of this Act will administer or supervise the 
                administration of the plan (except as otherwise 
                provided in section 103(d) of the Adoption Assistance 
                and Child Welfare Act of 1980); and
                    ``(B) to the extent that child welfare services are 
                furnished by the staff of the State agency or local 
                agency administering the plan, a single organizational 
                unit in such State or local agency, as the case may be, 
                will be responsible for furnishing such child welfare 
                services;
            ``(2) provides for coordination between the services 
        provided for children under the plan and the services and 
        assistance provided under title XX of this Act, under the State 
        program funded under part A of this title, under the State plan 
        approved under part E of this title, and under other State 
        programs having a relationship to the program under this part, 
        with a view to provision of welfare and related services which 
        will best promote the welfare of such children and their 
        families;
            ``(3) provides that the standards and requirements imposed 
        with respect to child day care under title XX of this Act shall 
        apply with respect to day care services under this part, except 
        insofar as eligibility for such services is involved;
            ``(4) provides for the training and effective use of paid 
        paraprofessional staff, with particular emphasis on the full-
        time or part-time employment of persons of low income, as 
        community service aides, in the administration of the plan, and 
        for the use of nonpaid or partially paid volunteers in 
        providing services and in assisting any advisory committees 
        established by the State agency;
            ``(5) contains a description of the steps which the State 
        will take to provide child welfare services and to make 
        progress in--
                    ``(A) covering additional political subdivisions,
                    ``(B) reaching additional children in need of 
                services, and
                    ``(C) expanding and strengthening the range of 
                existing services and developing new types of services,
        along with a description of the State's child welfare services 
        staff development and training plans;
            ``(6) provides, in the development of services for 
        children, for utilization of the facilities and experience of 
        voluntary agencies in accordance with State and local programs 
        and arrangements, as authorized by the State;
            ``(7) provides that the agency administering or supervising 
        the administration of the plan will furnish such reports, 
        containing such information, and participate in such 
        evaluations, as the Secretary may require;
            ``(8) provides for the diligent recruitment of potential 
        foster and adoptive families that reflect the ethnic and racial 
        diversity of children in the State for whom foster and adoptive 
        homes are needed;
            ``(9) provides assurances that the State--
                    ``(A) has completed an inventory of all children 
                who, before the inventory, had been in foster care 
                under the responsibility of the State for 6 months or 
                more, which determined--
                            ``(i) the appropriateness of, and necessity 
                        for, the foster care placement;
                            ``(ii) whether the child could or should be 
                        returned to the parents of the child or should 
                        be freed for adoption or other permanent 
                        placement; and
                            ``(iii) the services necessary to 
                        facilitate the return of the child or the 
                        placement of the child for adoption or legal 
                        guardianship;
                    ``(B) is operating, to the satisfaction of the 
                Secretary--
                            ``(i) a statewide information system from 
                        which can be readily determined the status, 
                        demographic characteristics, location, and 
                        goals for the placement of every child who is 
                        (or, within the immediately preceding 12 
                        months, has been) in foster care;
                            ``(ii) a case review system for each child 
                        receiving foster care under the supervision of 
                        the State;
                            ``(iii) a service program designed to help 
                        children--
                                    ``(I) where safe and appropriate, 
                                return to families from which they have 
                                been removed; or
                                    ``(II) be placed for adoption, with 
                                a legal guardian, or if adoption or 
                                legal guardianship is determined not to 
                                be appropriate for a child, in some 
                                other planned, permanent living 
                                arrangement; and
                            ``(iv) a preplacement preventive services 
                        program designed to help children at risk of 
                        foster care placement remain safely with their 
                        families; and
                    ``(C)(i) has reviewed State policies and 
                administrative and judicial procedures in effect for 
                children abandoned at or shortly after birth (including 
                policies and procedures providing for legal 
                representation of such children); and
                    ``(ii) is implementing such policies and procedures 
                as the State determines, on the basis of the review 
                described in clause (i) of this subparagraph, to be 
                necessary to enable permanent decisions to be made 
                expeditiously with respect to the placement of such 
                children;
            ``(10) contains a description, developed after consultation 
        with tribal organizations (as defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act) in the 
        State, of the specific measures taken by the State to comply 
        with the Indian Child Welfare Act;
            ``(11) contains assurances that the State shall develop 
        plans for the effective use of cross-jurisdictional resources 
        to facilitate timely adoptive or permanent placements for 
        waiting children;
            ``(12) contains a description of the activities that the 
        State has undertaken for children adopted from other countries, 
        including the provision of adoption and post-adoption services;
            ``(13) provides that the State shall collect and report 
        information on children who are adopted from other countries 
        and who enter into State custody as a result of the disruption 
        of a placement for adoption or the dissolution of an adoption, 
        including the number of children, the agencies who handled the 
        placement or adoption, the plans for the child, and the reasons 
        for the disruption or dissolution;
            ``(14)(A)(i) sets forth the goals intended to be 
        accomplished under the plan by the end of the 5th fiscal year 
        in which the plan is in operation in the State; and
            ``(ii) is updated periodically to set forth the goals 
        intended to be accomplished under the plan by the end of each 
        5th fiscal year thereafter;
            ``(B) describes the methods to be used in measuring 
        progress toward accomplishment of the goals; and
            ``(C) contains assurances that the State--
                    ``(i) after the end of each of the 1st 4 fiscal 
                years covered by a set of goals, will perform an 
                interim review of progress toward accomplishment of the 
                goals, and on the basis of the interim review will 
                revise the statement of goals in the plan, if 
                necessary, to reflect changed circumstances; and
                    ``(ii) after the end of the last fiscal year 
                covered by a set of goals, will perform a final review 
                of progress toward accomplishment of the goals, and on 
                the basis of the final review--
                            ``(I) will prepare, transmit to the 
                        Secretary, and make available to the public a 
                        final report on progress toward accomplishment 
                        of the goals; and
                            ``(II) will develop (in consultation with 
                        appropriate public and non-profit private 
                        agencies and community-based organizations with 
                        experience in administering programs of 
                        services for children and families) and add to 
                        the plan a statement of the goals intended to 
                        be accomplished by the end of the 5th 
                        succeeding fiscal year;
            ``(15) contains assurances that portions of the funds 
        provided under this part will be expended by the State for 
        programs of family preservation services, community-based 
        family support services, time-limited family reunification 
        services, and adoption promotion and support services;
            ``(16) contains assurances that the State will--
                    ``(A) annually prepare, furnish to the Secretary, 
                and make available to the public a description 
                (including separate descriptions with respect to family 
                preservation services, community-based family support 
                services, time-limited family reunification services, 
                and adoption promotion and support services) of--
                            ``(i) the service programs to be made 
                        available under the plan in the immediately 
                        succeeding fiscal year;
                            ``(ii) the populations which the programs 
                        will serve; and
                            ``(iii) the geographic areas in the State 
                        in which the services will be available; and
                    ``(B) perform the activities described in 
                subparagraph (A) of this paragraph--
                            ``(i) in the case of the 1st fiscal year 
                        under the plan, at the time the State submits 
                        its initial plan; and
                            ``(ii) in the case of each succeeding 
                        fiscal year, by the end of the 3rd quarter of 
                        the immediately preceding fiscal year;
            ``(17) provides for such methods of administration as the 
        Secretary finds to be necessary for the proper and efficient 
        operation of the plan;
            ``(18)(A) contains assurances that Federal funds provided 
        to the State under this part will not be used to supplant 
        Federal or non-Federal funds for existing services and 
        activities which promote the purposes of this part; and
            ``(B) provides that the State will furnish reports to the 
        Secretary, at such times, in such format, and containing such 
        information as the Secretary may require, that demonstrate the 
        State's compliance with the prohibition contained in 
        subparagraph (A) of this paragraph; and
            ``(19) contains assurances that in administering and 
        conducting service programs under the plan, the safety of the 
        children to be served shall be of paramount concern.
    ``(b) Indian Tribes.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, subsection (a) shall apply to an Indian tribe in 
        the same manner as this part applies to a State.
            ``(2) Waiver authority.--The Secretary may exempt a plan 
        submitted by an Indian tribe from any requirement of subsection 
        (a) that the Secretary determines would be inappropriate to 
        apply to the tribe, taking into account the resources, needs, 
        and other circumstances of the tribe.

``SEC. 423. ALLOTMENTS.

    ``(a) 50 States and the District of Columbia.--The allotment under 
this section for a fiscal year of any State not specified in section 
428(d)(1) with a plan approved under this part for the fiscal year is 
the sum of--
            ``(1) the amount that bears the same ratio to the sum of 
        the amount specified in section 428(a) for the fiscal year that 
        remains after applying section 428(d) for the fiscal year and 
        the amount (if any) appropriated under section 428(b) for the 
        fiscal year, as the total amount payable to the State under 
        part B (as in effect before the effective date of this part) 
        and subparagraphs (A), (B), and (E) of section 474(a)(3) (as so 
        in effect) for fiscal years 2001 through 2003 bears to the 
        total amount so payable to all States not so specified;
            ``(2) the amount (if any) by which the allotment under this 
        section for the preceding fiscal year exceeds the total amount 
        payable to the State under section 424 for the preceding fiscal 
        year; and
            ``(3) the amount (if any) that the Secretary is required 
        under section 474(g)(3)(A)(ii) to add to the allotment of the 
        State for the fiscal year.
    ``(b) Territories.--The allotment under this section for a fiscal 
year of each State specified in section 428(d)(1) with an application 
approved under this part for the fiscal year is the sum of--
            ``(1)(A) the sum described in such section; multiplied by
            ``(B) the percentage that equals--
                    ``(i) the total number of children in the State who 
                have not attained 21 years of age; divided by
                    ``(ii) the total number of such children in all 
                States so specified; and
            ``(2) the amount (if any) that the Secretary is required 
        under section 474(g)(3)(A)(ii) to add to the allotment of the 
        State for the fiscal year.
    ``(c) Indian Tribes.--
            ``(1) In general.--The allotment under this section for a 
        fiscal year of each Indian tribe with an application approved 
        under this part for the fiscal year is an amount equal to--
                    ``(A) $10,000; plus
                    ``(B) the amount that bears the same ratio to the 
                amount by which the sum described in section 428(d)(2) 
                exceeds the total of the amounts allotted for the 
                fiscal year under subparagraph (A), as the number of 
                children in the tribe who have not attained 21 years of 
                age bears to the total number of such children in all 
                Indian tribes.
            ``(2) Determination of the number of children in a tribe.--
        In determining the number of children in an Indian tribe who 
        have not attained 21 years of age, the Secretary shall use--
                    ``(A) the number of such children as determined by 
                the Bureau of the Census in the most recent decennial 
                census available; or
                    ``(B) if the tribe certifies to the Secretary a 
                number which the Secretary deems to be a more accurate 
                measure of the number of such children than the number 
                referred to in subparagraph (A), the number so 
                certified.

``SEC. 424. SAFE CHILDREN, STRONG FAMILIES GRANTS.

    ``(a) States.--For each fiscal year, from the amount specified in 
section 428(a) for the fiscal year that remains after applying section 
428(d) for the fiscal year (or, in the case of a State specified in 
section 428(d)(1), from the sum reserved under section 428(d)(1) and 
the sum (if any) reserved under section 428(e)(1)), the amount (if any) 
appropriated under section 428(b) for the fiscal year, and from any 
amounts subject to an election by the State under section 
474(g)(3)(A)(ii) with respect to the fiscal year, each State that has a 
plan approved under this part for the fiscal year shall be entitled to 
receive from the Secretary, subject to section 425, a grant in an 
amount equal to the lesser of--
            ``(1) the allotment of the State under section 423 for the 
        fiscal year; or
            ``(2) 68 percent of the total amount of qualified 
        expenditures of the State during the fiscal year.
    ``(b) Indian Tribes.--For each fiscal year, from the sum reserved 
under section 428(d)(2) and the sum (if any) reserved under section 
428(e)(2), each Indian tribe that has an application approved under 
this part for the fiscal year shall be entitled to receive from the 
Secretary, subject to section 425, a grant in an amount equal to the 
lesser of--
            ``(1) the allotment of the tribe under section 423(c) for 
        the fiscal year; or
            ``(2) 68 percent of the total amount of qualified 
        expenditures of the tribe during the fiscal year.
    ``(c) Method of Computing and Making Payments.--The method of 
computing and making payments under this section shall be as follows:
            ``(1) The Secretary shall, prior to the beginning of each 
        period for which a payment is to be made, estimate the amount 
        to be paid to the State or Indian tribe, as the case may be, 
        for the period under this section.
            ``(2) From the allotment available therefor, the Secretary 
        shall pay the amount so estimated, reduced or increased, as the 
        case may be, by any sum (not previously adjusted under this 
        section) by which the Secretary finds that the estimate of the 
        amount to be paid the State or Indian tribe, as the case may 
        be, for any prior period under this section was greater or less 
        than the amount which should have been so paid to the State or 
        tribe, as the case may be.
    ``(d) Direct Payments to Tribal Organizations of Indian Tribes.--
The Secretary shall pay any amount to which an Indian tribe is entitled 
under this part directly to the tribal organization of the Indian 
tribe.
    ``(e) Use of Funds.--
            ``(1) In general.--A State or Indian tribe to which a grant 
        is made under this section shall use the grant to carry out the 
        plan developed in accordance with section 422 by the State or 
        tribe, as the case may be.
            ``(2) Requirement that funds be spent for child welfare 
        services.--A State or Indian tribe to which a grant is made 
        under this section may not use the grant to provide foster care 
        maintenance payments.

``SEC. 425. MAINTENANCE OF EFFORT.

    ``The Secretary shall reduce the amount otherwise payable to a 
State or Indian tribe under this part for a particular fiscal year by 
the amount (if any) by which the total amount of qualified expenditures 
of the State or tribe, as the case may be, from State and local sources 
or from tribal sources, as the case may be, in fiscal year 2003 exceeds 
the total amount of qualified expenditures of the State or tribe, as 
the case may be, in the particular fiscal year.

``SEC. 426. FUNDING FOR STATE COURTS TO ASSESS AND IMPROVE HANDLING OF 
              PROCEEDINGS RELATING TO FOSTER CARE AND ADOPTION.

    ``(a) In General.--The Secretary shall make grants, in accordance 
with this section, to the highest State courts in States participating 
in the program under part E, for the purpose of enabling such courts--
            ``(1) to conduct assessments, in accordance with such 
        requirements as the Secretary shall publish, of the role, 
        responsibilities, and effectiveness of State courts in carrying 
        out State laws requiring proceedings (conducted by or under the 
        supervision of the courts)--
                    ``(A) that implement this part and part E;
                    ``(B) that determine the advisability or 
                appropriateness of foster care placement;
                    ``(C) that determine whether to terminate parental 
                rights; and
                    ``(D) that determine whether to approve the 
                adoption or other permanent placement of a child; and
            ``(2) to implement improvements the highest State courts 
        deem necessary as a result of the assessments, including--
                    ``(A) to provide for the safety, well-being, and 
                permanence of children in foster care, as set forth in 
                the Adoption and Safe Families Act of 1997 (Public Law 
                105-89); and
                    ``(B) to establish performance measures that track 
                court performance with regards to ensuring safety, 
                permanency, and well-being for children;
                    ``(C) to implement a corrective action plan, as 
                necessary, resulting from reviews of child and family 
                service programs under section 1123A of this Act.
    ``(b) Applications.--In order to be eligible for a grant under this 
section, a highest State court shall submit to the Secretary an 
application at such time, in such form, and including such information 
and assurances as the Secretary shall require.
    ``(c) Allotments.--
            ``(1) In general.--Each highest State court which has an 
        application approved under subsection (b), and is conducting 
        assessment and improvement activities in accordance with this 
        section, shall be entitled to payment, for each of fiscal years 
        2005 through 2014, from the amount reserved pursuant to section 
        428(d)(3), of an amount equal to the sum of $85,000 plus the 
        amount described in paragraph (2) of this subsection for the 
        fiscal year.
            ``(2) Formula.--The amount described in this paragraph for 
        any fiscal year is the amount that bears the same ratio to the 
        amount reserved pursuant to section 428(d)(3) for the fiscal 
        year (reduced by the dollar amount specified in paragraph (1) 
        of this subsection for the fiscal year) as the number of 
        individuals in the State who have not attained 21 years of age 
        bears to the total number of such individuals in all States the 
        highest State courts of which have approved applications under 
        subsection (b) of this section.
    ``(d) Federal Share.--Each highest State court which receives funds 
paid under this section may use such funds to pay not more than 75 
percent of the cost of activities under this section in each of fiscal 
years 2005 through 2014.

``SEC. 427. EVALUATIONS; RESEARCH; TECHNICAL ASSISTANCE; CHILD WELFARE 
              TRAINEESHIPS.

    ``(a) Evaluations.--
            ``(1) In general.--The Secretary shall evaluate and report 
        to the Congress biennially on the effectiveness of the programs 
        carried out pursuant to this part in accomplishing the purposes 
        of this part, and may evaluate any other Federal, State, or 
        local program, regardless of whether federally assisted, that 
        is designed to achieve the same purposes as the program under 
        this part, in accordance with criteria established in 
        accordance with paragraph (2).
            ``(2) Criteria to be used.--In developing the criteria to 
        be used in evaluations under paragraph (1), the Secretary shall 
        consult with appropriate parties, such as--
                    ``(A) State agencies administering programs under 
                this part and part E;
                    ``(B) persons administering child and family 
                services programs for private, nonprofit organizations 
                with an interest in child welfare; and
                    ``(C) other persons with recognized expertise in 
                the evaluation of child and family services programs or 
                other related programs.
            ``(3) Timing of report.--Not later than April 1, 2006, and 
        biennially thereafter, the Secretary shall submit the report 
        required by paragraph (1), and shall include in each such 
        report the funding level, the status of ongoing evaluations, 
        findings to date, and the nature of any technical assistance 
        provided to States under subsection (d).
    ``(b) Coordination of Evaluations.--The Secretary shall develop 
procedures to coordinate evaluations under this section, to the extent 
feasible, with evaluations by the States of the effectiveness of 
programs funded under this part.
    ``(c) Research and Evaluation Priorities.--The Secretary shall give 
priority consideration to the following topics for research and 
evaluation under this subsection, using rigorous evaluation 
methodologies where feasible:
            ``(1) Promising program models in the service categories 
        specified in paragraphs (1), (3), (4), and (9) of section 
        430(a), particularly time-limited reunification services and 
        postadoption services.
            ``(2) Multi-disciplinary service models designed to address 
        parental substance abuse and to reduce its impacts on children.
            ``(3) The efficacy of approaches directed at families with 
        specific problems and with children of specific age ranges.
            ``(4) The outcomes of adoptions finalized after enactment 
        of the Adoption and Safe Families Act of 1997.
    ``(d) Technical Assistance.--To the extent funds are available 
therefor, the Secretary shall provide technical assistance that helps 
States and Indian tribes to achieve the purposes of this part and part 
E.
    ``(e) Federal Oversight of Tribal Activities.--
            ``(1) Federal role.--The Secretary shall provide oversight 
        (which may include on-site reviews) with respect to the 
        implementation of tribal plans approved under this part and 
        part E.
            ``(2) Tribal role.--An Indian tribe carrying out a plan 
        approved under this part or part E shall--
                    ``(A) cooperate with an on-site review by the 
                Secretary appropriate to any areas of concern that the 
                Secretary may identify with respect to the plan; and
                    ``(B) if required by the Secretary, develop an 
                improvement strategy to correct any deficiencies in the 
                conduct of the plan that are determined by the 
                Secretary.
    ``(f) Grants for Training.--The Secretary may make grants to public 
or other nonprofit institutions of higher learning for special projects 
for training personnel for work in the field of child welfare, 
including traineeships described in subsection (g) with such stipends 
and allowances as may be permitted by the Secretary.
    ``(g) Child Welfare Traineeships.--The Secretary may approve an 
application for a grant to a public or nonprofit institution for higher 
learning to provide traineeships with stipends under subsection (f) 
only if the application--
            ``(1) provides assurances that each individual who receives 
        a stipend with such traineeship (in this subsection referred to 
        as a `recipient') agrees--
                    ``(A) to participate in training at a public or 
                private nonprofit child welfare agency on a regular 
                basis (as determined by the Secretary) for the period 
                of the traineeship;
                    ``(B) to be employed for a period of years 
                equivalent to the period of the traineeship, in a 
                public or private nonprofit child welfare agency in any 
                State, within a period of time (determined by the 
                Secretary in accordance with regulations) after 
                completing the postsecondary education for which the 
                traineeship was awarded;
                    ``(C) to furnish to the institution and the 
                Secretary evidence of compliance with subparagraphs (A) 
                and (B); and
                    ``(D) if the recipient fails to comply with 
                subparagraph (A) or (B) and does not qualify for any 
                exception to this subparagraph which the Secretary may 
                prescribe in regulations, to repay to the Secretary all 
                (or an appropriately prorated part) of the amount of 
                the stipend, plus interest, and, if applicable, 
                reasonable collection fees (in accordance with 
                regulations promulgated by the Secretary); and
            ``(2) provides assurances that the institution will--
                    ``(A) enter into agreements with child welfare 
                agencies for onsite training of recipients;
                    ``(B) permit an individual who is employed in the 
                field of child welfare services to apply for a 
                traineeship with a stipend if the traineeship furthers 
                the progress of the individual toward the completion of 
                degree requirements; and
                    ``(C) develop and implement a system that, for the 
                3-year period that begins on the date any recipient 
                completes a child welfare services program of study, 
                tracks the employment record of the recipient, for the 
                purpose of determining the percentage of recipients who 
                secure employment in the field of child welfare 
                services and remain employed in the field.

``SEC. 428. FUNDING.

    ``(a) Safe Children, Strong Families Grant Funding Levels.--The 
amount specified in this subsection is--
            ``(1) $3,878,000,000 for fiscal year 2005;
            ``(2) $4,005,000,000 for fiscal year 2006;
            ``(3) $4,131,000,000 for fiscal year 2007;
            ``(4) $4,259,000,000 for fiscal year 2008;
            ``(5) $4,389,000,000 for fiscal year 2009;
            ``(6) $4,515,000,000 for fiscal year 2010;
            ``(7) $4,641,000,000 for fiscal year 2011;
            ``(8) $4,765,000,000 for fiscal year 2012;
            ``(9) $4,888,000,000 for fiscal year 2013; and
            ``(10) $5,010,000,000 for fiscal year 2014.
    ``(b) Additional Funding.--In addition to any amount appropriated 
pursuant to subsection (a), there are authorized to be appropriated for 
grants under section 424 $525,000,000 for each of fiscal years 2005 
through 2014.
    ``(c) Availability of Appropriations.--Funds appropriated pursuant 
to this part shall remain available until expended.
    ``(d) Funds for Territories, Indian Tribes, Courts, and Other 
Purposes.--For each fiscal year, from the amount specified in 
subsection (a) of this section, the Secretary shall reserve--
            ``(1) for grants under section 424(a) for the Commonwealth 
        of Puerto Rico, Guam, the Northern Mariana Islands, American 
        Samoa, and the United States Virgin Islands, a sum equal to 
        0.45 percent of the amount;
            ``(2) for grants to Indian tribes under section 424(b), a 
        sum equal to 0.45 percent of the amount;
            ``(3) for grants under section 426 (relating to entitlement 
        funding for State courts to assess and improve handling of 
        proceedings relating to foster care and adoption), a sum equal 
        to 0.45 percent of the amount; and
            ``(4) for activities under sections 427 (relating to 
        evaluations, research, technical assistance, and child welfare 
        traineeships), a sum equal to 1.25 percent of the amount.
    ``(e) Additional Funds for Territories and Indian Tribes.--For each 
fiscal year, from the amount (if any) appropriated under subsection (b) 
of this section, the Secretary shall reserve--
            ``(1) for grants under section 424(a) to States specified 
        in subsection (d)(1) of this section, a sum equal to 0.5 
        percent of the amount; and
            ``(2) for grants to Indian tribes under section 424(b), a 
        sum equal to 0.5 percent of the amount.

``SEC. 429. GRANTS FOR PROGRAMS FOR MENTORING CHILDREN OF PRISONERS.

    ``(a) Findings and Purpose.--
            ``(1) Findings.--
                    ``(A) In the period between 1991 and 1999, the 
                number of children with a parent incarcerated in a 
                Federal or State correctional facility increased by 
                more than 100 percent, from approximately 900,000 to 
                approximately 2,000,000. In 1999, 2.1 percent of all 
                children in the United States had a parent in Federal 
                or State prison.
                    ``(B) Prior to incarceration, 64 percent of female 
                prisoners and 44 percent of male prisoners in State 
                facilities lived with their children.
                    ``(C) Nearly 90 percent of the children of 
                incarcerated fathers live with their mothers, and 79 
                percent of the children of incarcerated mothers live 
                with a grandparent or other relative.
                    ``(D) Parental arrest and confinement lead to 
                stress, trauma, stigmatization, and separation problems 
                for children. These problems are coupled with existing 
                problems that include poverty, violence, parental 
                substance abuse, high-crime environments, intrafamilial 
                abuse, child abuse and neglect, multiple care givers, 
                and/or prior separations. As a result, these children 
                often exhibit a broad variety of behavioral, emotional, 
                health, and educational problems that are often 
                compounded by the pain of separation.
                    ``(E) Empirical research demonstrates that 
                mentoring is a potent force for improving children's 
                behavior across all risk behaviors affecting health. 
                Quality, one-on-one relationships that provide young 
                people with caring role models for future success have 
                profound, life-changing potential. Done right, 
                mentoring markedly advances youths' life prospects. A 
                widely cited 1995 study by Public/Private Ventures 
                measured the impact of one Big Brothers Big Sisters 
                program and found significant effects in the lives of 
                youth--cutting first-time drug use by almost half and 
                first-time alcohol use by about a third, reducing 
                school absenteeism by half, cutting assaultive behavior 
                by a third, improving parental and peer relationships, 
                giving youth greater confidence in their school work, 
                and improving academic performance.
            ``(2) Purpose.--The purpose of this section is to authorize 
        the Secretary to make competitive grants to applicants in areas 
        with substantial numbers of children of incarcerated parents, 
        to support the establishment or expansion and operation of 
        programs using a network of public and private community 
        entities to provide mentoring services for children of 
        prisoners.
    ``(b) Definitions.--In this section:
            ``(1) Children of prisoners.--The term `children of 
        prisoners' means children one or both of whose parents are 
        incarcerated in a Federal, State, or local correctional 
        facility. The term is deemed to include children who are in an 
        ongoing mentoring relationship in a program under this section 
        at the time of their parents' release from prison, for purposes 
        of continued participation in the program.
            ``(2) Mentoring.--The term `mentoring' means a structured, 
        managed program in which children are appropriately matched 
        with screened and trained adult volunteers for one-on-one 
        relationships, involving meetings and activities on a regular 
        basis, intended to meet, in part, the child's need for 
        involvement with a caring and supportive adult who provides a 
        positive role model.
            ``(3) Mentoring services.--The term `mentoring services' 
        means those services and activities that support a structured, 
        managed program of mentoring, including the management by 
        trained personnel of outreach to, and screening of, eligible 
        children; outreach to, education and training of, and liaison 
        with sponsoring local organizations; screening and training of 
        adult volunteers; matching of children with suitable adult 
        volunteer mentors; support and oversight of the mentoring 
        relationship; and establishment of goals and evaluation of 
        outcomes for mentored children.
    ``(c) Program Authorized.--From the amounts appropriated under 
subsection (h) for a fiscal year that remain after applying subsection 
(h)(2), the Secretary shall make grants under this section for each of 
fiscal years 2005 through 2014 to State or local governments, tribal 
governments or tribal consortia, faith-based organizations, and 
community-based organizations in areas that have significant numbers of 
children of prisoners and that submit applications meeting the 
requirements of this section, in amounts that do not exceed $5,000,000 
per grant.
    ``(d) Application Requirements.--In order to be eligible for a 
grant under this section, the chief executive officer of the applicant 
must submit to the Secretary an application containing the following:
            ``(1) Program design.--A description of the proposed 
        program, including--
                    ``(A) a list of local public and private 
                organizations and entities that will participate in the 
                mentoring network;
                    ``(B) the name, description, and qualifications of 
                the entity that will coordinate and oversee the 
                activities of the mentoring network;
                    ``(C) the number of mentor-child matches proposed 
                to be established and maintained annually under the 
                program;
                    ``(D) such information as the Secretary may require 
                concerning the methods to be used to recruit, screen 
                support, and oversee individuals participating as 
                mentors, (which methods shall include criminal 
                background checks on the individuals), and to evaluate 
                outcomes for participating children, including 
                information necessary to demonstrate compliance with 
                requirements established by the Secretary for the 
                program; and
                    ``(E) such other information as the Secretary may 
                require.
            ``(2) Community consultation; coordination with other 
        programs.--A demonstration that, in developing and implementing 
        the program, the applicant will, to the extent feasible and 
        appropriate--
                    ``(A) consult with public and private community 
                entities, including religious organizations, and 
                including, as appropriate, Indian tribal organizations 
                and urban Indian organizations, and with family members 
                of potential clients;
                    ``(B) coordinate the programs and activities under 
                the program with other Federal, State, and local 
                programs serving children and youth; and
                    ``(C) consult with appropriate Federal, State, and 
                local corrections, workforce development, and substance 
                abuse and mental health agencies.
            ``(3) Equal access for local service providers.--An 
        assurance that public and private entities and community 
        organizations, including religious organizations and Indian 
        organizations, will be eligible to participate on an equal 
        basis.
            ``(4) Records, reports, and audits.--An agreement that the 
        applicant will maintain such records, make such reports, and 
        cooperate with such reviews or audits as the Secretary may find 
        necessary for purposes of oversight of project activities and 
        expenditures.
            ``(5) Evaluation.--An agreement that the applicant will 
        cooperate fully with the Secretary's ongoing and final 
        evaluation of the program under the plan, by means including 
        providing the Secretary access to the program and program-
        related records and documents, staff, and grantees receiving 
        funding under the plan.
    ``(e) Federal Share.--
            ``(1) In general.--A grant for a program under this section 
        shall be available to pay a percentage share of the costs of 
        the program up to--
                    ``(A) 75 percent for the first and second fiscal 
                years for which the grant is awarded; and
                    ``(B) 50 percent for the third and each succeeding 
                such fiscal years.
            ``(2) Non-federal share.--The non-Federal share of the cost 
        of projects under this section may be in cash or in kind. In 
        determining the amount of the non-Federal share, the Secretary 
        may attribute fair market value to goods, services, and 
        facilities contributed from non-Federal sources.
    ``(f) Considerations in Awarding Grants.--In awarding grants under 
this section, the Secretary shall take into consideration--
            ``(1) the qualifications and capacity of applicants and 
        networks of organizations to effectively carry out a mentoring 
        program under this section;
            ``(2) the comparative severity of need for mentoring 
        services in local areas, taking into consideration data on the 
        numbers of children (and in particular of low-income children) 
        with an incarcerated parents (or parents) in the areas;
            ``(3) evidence of consultation with existing youth and 
        family service programs, as appropriate; and
            ``(4) any other factors the Secretary may deem significant 
        with respect to the need for or the potential success of 
        carrying out a mentoring program under this section.
    ``(g) Evaluations.--The Secretary shall conduct evaluations of the 
programs conducted pursuant to this section, and submit to the Congress 
not later than April 15, 2005, and biennially thereafter, a report on 
the findings of the evaluation for the period involved.
    ``(h) Limitations on Authorization of Appropriations; Reservation 
of Certain Amounts.--
            ``(1) Limitations on authorization of appropriations.--
        There are authorized to be appropriated to carry out this 
        section $67,000,000 for each of fiscal years 2005 through 2009, 
        and such sums as may be necessary for each succeeding fiscal 
        year.
            ``(2) Reservation.--The Secretary shall reserve 2.5 percent 
        of the amount appropriated for each fiscal year under paragraph 
        (1) for expenditure by the Secretary for research, technical 
        assistance, and evaluation related to programs under this 
        section.

``SEC. 430. DEFINITIONS.

    ``(a) In General.--In this part:
            ``(1) Adoption promotion and support services.--The term 
        `adoption promotion and support services' means services and 
        activities designed to encourage more adoptions out of the 
        foster care system, when adoptions promote the best interests 
        of children, including such activities as pre- and post-
        adoptive services and activities designed to expedite the 
        adoption process and support adoptive families.
            ``(2) Child welfare services.--
                    ``(A) In general.--The term `child welfare 
                services' means social services which are directed 
                toward the accomplishment of the following purposes:
                            ``(i) Protecting and promoting the welfare 
                        of all children, including handicapped, 
                        homeless, dependent, or neglected children.
                            ``(ii) Conducting timely assessments and 
                        investigation of reported child abuse and 
                        neglect to ensure the safety of children.
                            ``(iii) Preventing or remedying, or 
                        assisting in the solution of problems which may 
                        result in, the neglect, abuse, exploitation, or 
                        delinquency of children.
                            ``(iv) Preventing the unnecessary 
                        separation of children from their families by 
                        identifying family problems, assisting families 
                        in resolving their problems, and preventing 
                        breakup of the family where the prevention of 
                        child removal is desirable and possible.
                            ``(v) Restoring to their families children 
                        who have been removed, by the provision of 
                        services to the child and the families.
                            ``(vi) Placing children in suitable 
                        adoptive homes, in cases where restoration to 
                        the biological family is not possible or 
                        appropriate.
                            ``(vii) Assuring adequate care of children 
                        away from their homes, in cases where the child 
                        cannot be returned home or has not been placed 
                        for adoption.
                    ``(B) Special rule.--Funds expended by a State for 
                any calendar quarter to comply with section 422(a)(9) 
                or 476(b), and funds expended with respect to 
                nonrecurring costs of adoption proceedings in the case 
                of children placed for adoption with respect to whom 
                assistance is provided under a State plan for adoption 
                assistance approved under part E, are deemed to have 
                been expended for child welfare services.
            ``(3) Family preservation services.--The term `family 
        preservation services' means services for children and families 
        designed to help families (including adoptive and extended 
        families) at risk or in crisis, including--
                    ``(A) service programs designed to help children--
                            ``(i) where safe and appropriate, return to 
                        families from which they have been removed; or
                            ``(ii) be placed for adoption, with a legal 
                        guardian, or, if adoption or legal guardianship 
                        is determined not to be safe and appropriate 
                        for a child, in some other planned, permanent 
                        living arrangement;
                    ``(B) preplacement preventive services programs, 
                such as intensive family preservation programs, 
                designed to help children at risk of foster care 
                placement remain safely with their families;
                    ``(C) service programs designed to provide followup 
                care to families to whom a child has been returned 
                after a foster care placement;
                    ``(D) respite care of children to provide temporary 
                relief for parents and other caregivers (including 
                foster parents);
                    ``(E) services designed to improve parenting skills 
                (by helping parents to identify where improvement is 
                needed and to obtain assistance in improving those 
                skills) with respect to matters such as child 
                development, family budgeting, coping with stress, 
                health, and nutrition; and
                    ``(F) infant safe haven programs to provide a way 
                for a parent to safely relinquish a newborn infant at a 
                safe haven designated pursuant to a State law.
            ``(4) Family support services.--The term `family support 
        services' means community-based services to promote the safety 
        and well-being of children and families designed to increase 
        the strength and stability of families (including adoptive, 
        foster, and extended families), to increase competence in 
        parenting, to afford children a safe, stable, and supportive 
        family environment, to strengthen parental relationships and 
        promote healthy marriages, and otherwise to enhance child 
        development.
            ``(5) Indian tribe.--
                    ``(A) In general.--The term `Indian tribe' means--
                            ``(i) any tribe, band, nation, or other 
                        organized group or community of Indians that--
                                    ``(I) is recognized as eligible for 
                                the special programs and services 
                                provided by the United States to 
                                Indians because of their status as 
                                Indians; and
                                    ``(II) for which a reservation 
                                exists; and
                            ``(ii) any organized group of Alaska 
                        Natives eligible to operate a Federal program 
                        under Public Law 93-638 or the designee of such 
                        a group.
                    ``(B) Reservation.--In subparagraph (A), the term 
                `reservation' includes Indian reservations, public 
                domain Indian allotments, and former Indian 
                reservations in Oklahoma.
            ``(6) Non-federal funds.--The term `non-Federal funds' 
        means State funds, or at the option of a State, State and local 
        funds.
            ``(7) Qualified expenditures.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `qualified expenditures' 
                means, with respect to a State or Indian tribe, any 
                expenditure by the State or tribe, as the case may be, 
                that is aimed at achieving the purposes of this part.
                    ``(B) Exception.--Such term shall not include any 
                expenditure under a State or tribal program funded 
                under part A.
            ``(8) State agency.--The term `State agency' means the 
        State agency responsible for administering, or supervising the 
        administration of, the State program under this part.
            ``(9) Time-limited family reunification services.--
                    ``(A) In general.--The term `time-limited family 
                reunification services' means the services and 
                activities described in subparagraph (B) that are 
                provided to a child that is removed from the child's 
                home and placed in a foster family home (as defined in 
                section 472(c)(1)) or a child-care institution (as 
                defined in section 472(c)(2)) and to the parents or 
                primary caregiver of such a child, in order to 
                facilitate the reunification of the child safely and 
                appropriately within a timely fashion, but only during 
                the 15-month period that begins on the date that the 
                child, pursuant to section 475(5)(G), is considered to 
                have entered foster care.
                    ``(B) Services and activities described.--The 
                services and activities described in this subparagraph 
                are the following:
                            ``(i) Individual, group, and family 
                        counseling.
                            ``(ii) Inpatient, residential, or 
                        outpatient substance abuse treatment services.
                            ``(iii) Mental health services.
                            ``(iv) Assistance to address domestic 
                        violence.
                            ``(v) Services designed to provide 
                        temporary child care and therapeutic services 
                        for families, including crisis nurseries.
                            ``(vi) Transportation to or from any of the 
                        services and activities described in this 
                        subparagraph.
            ``(10) Tribal organization.--The term `tribal organization' 
        means the recognized governing body of any Indian tribe.
    ``(b) Other Terms.--For definitions of other terms used in this 
part, see sections 475 and 1101(a).''.
    (b) Conforming Amendments.--
            (1) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is 
        amended by adding at the end the following:
                                    ``(V) Exclusion of expenditures 
                                under part b.--Such term does not 
                                include any expenditure under the State 
                                plan developed under part B.''.
            (2) Section 454(33) (42 U.S.C. 654(33)) is amended by 
        striking ``receives funding pursuant to section 428 and that''.
            (3) Section 470 (42 U.S.C. 670) is amended by striking 
        ``(commencing with the fiscal year which begins October 1, 
        1980)''.
            (4) Section 471(a)(2) (42 U.S.C. 671(a)(2)) is amended by 
        striking ``program authorized by subpart 1 of part B of this 
        title'' and inserting ``State program under the State plan 
        developed under part B''.
            (5) Section 471(a)(14) (42 U.S.C. 671(a)(14)) is amended--
                    (A) by striking ``on or before October 1, 1982''; 
                and
                    (B) by striking ``(commencing with the fiscal year 
                which begins on October 1, 1983)''.
            (6) Section 471(a)(18) (42 U.S.C. 671(a)(18)) is amended by 
        striking ``not later than January 1, 1997,''.
            (7) Section 471(a)(22) (42 U.S.C. 671(a)(22)) is amended by 
        striking ``, not later than January 1, 1999,''.
            (8) Section 472(d) (42 U.S.C. 672(d)) is amended by 
        striking ``422(b)(10)'' and inserting ``422(a)(9)''.
            (9) Section 473(a)(6) (42 U.S.C. 673(a)(6)) is amended--
                    (A) by striking ``(6)(A)'' and inserting ``(6)''; 
                and
                    (B) by striking subparagraph (B).
            (10) Section 473(b) (42 U.S.C. 673(b)) is amended--
                    (A) in paragraph (1), by striking ``(3)'' and 
                inserting ``(2)''; and
                    (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2).
            (11) Section 473A(f) (42 U.S.C. 673b(f)) is amended by 
        striking ``423, 434,'' and inserting ``424''.
            (12) Section 474(a) (42 U.S.C. 674(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``beginning after September 30, 1980''; and
                    (B) in paragraph (3)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``as found'' and all that 
                        follows through ``State plan'';
                            (ii) in subpargraph (C)(iii), by striking 
                        ``(for the purposes of facilitating 
                        verification of eligibility of foster 
                        children)'';
                            (iii) in subparagraph (D), by striking 
                        ``(C); and'' and inserting ``(A); plus''; and
                            (iv) by striking subparagraphs (A), (B), 
                        and (E) and redesignating subparagraphs (C) and 
                        (D) as subparagraphs (A) and (B), respectively.
            (13) Section 475 (42 U.S.C. 675) is amended by adding at 
        the end the following:
            ``(8) The term `child' means--
                    ``(A) an individual who has not attained 18 years 
                of age or the age of majority established by the State; 
                and
                    ``(B) at the option of the State, an individual who 
                has not attained 19 years of age and is a full-time 
                student in a secondary school (or in the equivalent 
                level of vocational or technical training), if, before 
                the individual attains 19 years of age, the individual 
                may reasonably be expected to complete the program of 
                such secondary school (or such training).''.
            (14) Section 1101(a)(1) (42 U.S.C. 1301(a)(1)), as amended 
        by section 102(c)(2)(A) of this Act, is amended in the last 
        sentence by striking ``part E'' and inserting ``parts B and 
        E''.
            (15) Section 1130(b)(1) (42 U.S.C. 1320a-9(b)(1)) is 
        amended by striking ``427'' and all that follows through ``or 
        section'' and inserting ``422(a)(9) or''.
            (16) Section 1130(c) (42 U.S.C. 1320a-9(c)) is amended by 
        striking ``subpart 1 or 2 of''.
            (17) Section 1130A (42 U.S.C. 1320a-10) is repealed.
            (18) Section 104(b)(3) of the Intercountry Adoption Act (42 
        U.S.C. 14914(b)(3)) is amended by striking ``422(b)(14)'' and 
        inserting ``422(a)(13)''.

SEC. 202. CHALLENGE GRANTS.

    (a) In General.--Part B of title IV, as added by section 201(a) of 
this Act, is amended by redesignating section 430 as section 431 and 
inserting after section 429 the following:

``SEC. 430. CHALLENGE GRANTS TO REWARD EFFORTS TO MOVE CHILDREN SAFELY 
              FROM FOSTER CARE AND PREVENT THE REMOVAL OF CHILDREN FROM 
              THEIR HOMES.

    ``(a) In General.--A State shall be entitled to receive from the 
Secretary a grant for each fiscal year referred to in subsection (e) 
for which the State is an eligible State.
    ``(b) Eligible States.--
            ``(1) In general.--For purposes of this section, a State is 
        an eligible State for a fiscal year if--
                    ``(A) in the case of fiscal year 2005, the State 
                has significantly exceeded the national standard then 
                in effect under paragraph (2) for at least 4 of the 
                outcome measures described in paragraph (3), and has 
                met the national standard then in effect for the other 
                outcome measures so described;
                    ``(B) in the case of fiscal year 2006, the State 
                has significantly exceeded the national standard then 
                in effect under paragraph (2) for at least 5 of the 
                outcome measures so described, and has met the national 
                standard then in effect for the other outcome measure 
                so described; and
                    ``(C) in the case of fiscal years 2007 and 2008, 
                the State has significantly exceeded the national 
                standard then in effect under paragraph (2) for all of 
                the outcome measures so described.
            ``(2) National standards.--The Secretary shall prescribe, 
        and from time to time update, a national standard for each 
        outcome measure described in paragraph (3).
            ``(3) Outcome measures.--The outcome measures described in 
        this paragraph are the following:
                    ``(A) The percentage of children in foster care in 
                a State during a year, who were the subject of 
                substantiated or indicated maltreatment by a foster 
                parent or facility staff member.
                    ``(B) The percentage of children reunified with 
                their parents or caretakers at the time of discharge 
                from foster care in a State during a year, who were so 
                reunified less than 12 months after their latest 
                removal from the home.
                    ``(C) The percentage of children entering foster 
                care in a State during a year, who re-entered foster 
                care within 12 months after a prior discharge from 
                foster care.
                    ``(D) The percentage of children exiting foster 
                care in a State to a finalized adoption during a year, 
                who so exited less than 24 months after their latest 
                removal from the home.
                    ``(E) The percentage of children reported to be 
                victims of substantiated or indicated child abuse or 
                neglect in the State during the first 6 months of a 
                period being reviewed, who were the subject of another 
                such report within 6 months after the first report.
                    ``(F) The percentage of children in foster care for 
                less than 12 months from the time of their latest 
                removal from the home, who have been placed in not more 
                than 2 settings.
            ``(4) Determination of state performance with respect to a 
        national standard.--For purposes of paragraph (1):
                    ``(A) Meeting a standard.--A State shall be 
                considered to have met the national standard for an 
                outcome measure described in paragraph (3) if the 
                percentage (referred to in the outcome measure) 
                achieved by the State is--
                            ``(i) in the case of an outcome measure 
                        described in subparagraph (A), (C), or (E) of 
                        paragraph (3), not more than the national 
                        standard; or
                            ``(ii) in the case of an outcome measure 
                        described in subparagraph (B), (D), or (F) of 
                        paragraph (3), not less than the national 
                        standard.
                    ``(B) Significantly exceeding a standard.--A State 
                shall be considered to have significantly exceeded the 
                national standard for an outcome measure described in 
                paragraph (3) if the percentage (referred to in the 
                outcome measure) achieved by the State is--
                            ``(i) in the case of an outcome measure 
                        described in subparagraph (A), (C), or (E) of 
                        paragraph (3), not more than 90 percent of the 
                        national standard; or
                            ``(ii) in the case of an outcome measure 
                        described in subparagraph (B), (D), or (F) of 
                        paragraph (3), not less than 110 percent of the 
                        national standard.
                    ``(C) Information to be considered.--In determining 
                the performance of a State with respect to an outcome 
                measure described in paragraph (3), the Secretary shall 
                use information for the most recent year for which the 
                relevant information is available.
    ``(c) Grant Amount.--
            ``(1) In general.--The amount of the grant payable to an 
        eligible State under this section for a fiscal year is an 
        amount equal to the State share of the dollar amount specified 
        in subsection (e).
            ``(2) State share defined.--In paragraph (1), the term 
        `State share' means, with respect to a State and a fiscal year, 
        the percentage equal to--
                    ``(A) the number of children residing in the State 
                who have not attained 21 years of age, determined on 
                the basis of the information available as of the 
                beginning of the fiscal year; divided by
                    ``(B) the number of such children residing in all 
                States, as so determined.
    ``(d) Use of Grant.--A State to which a grant is made under this 
section shall use the grant for any purpose under the State plan 
developed under this part or the State plan approved under part E.
    ``(e) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are appropriated 
$100,000,000 for each of fiscal years 2005 through 2008 for grants 
under this section.
    ``(f) Budget Scoring.--Notwithstanding section 257(b)(2) of the 
Balanced Budget and Emergency Deficit Contol Act of 1985, the baseline 
shall assume that no grant shall be made under this section after 
fiscal year 2008.''.
    (b) Conforming Amendments.--Each of the following provisions is 
amended by striking ``430(a)'' and inserting ``431(a)'':
            (1) Section 427(c)(1), as added by section 201(a) of this 
        Act.
            (2) Section 479B(d), as added by section 103(b) of this 
        Act.

       TITLE III--ENHANCEMENTS TO CHILD WELFARE WAIVER AUTHORITY

SEC. 301. EXTENSION OF AUTHORITY TO APPROVE DEMONSTRATION PROJECTS.

    Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by striking 
``2002'' and inserting ``2008''.

SEC. 302. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS.

    Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by striking 
``not more than 10''.

SEC. 303. ELIMINATION OF LIMITATION ON NUMBER OF STATES THAT MAY BE 
              GRANTED WAIVERS TO CONDUCT DEMONSTRATION PROJECTS ON SAME 
              TOPIC.

    Section 1130 (42 U.S.C. 1320a-9) is amended by adding at the end 
the following:
    ``(h) No Limit on Number of States That May Be Granted Waivers to 
Conduct Same or Similar Demonstration Projects.--The Secretary shall 
not refuse to grant a waiver to a State under this section on the 
grounds that a purpose of the waiver or of the demonstration project 
for which the waiver is necessary would be the same as or similar to a 
purpose of another waiver or project that is or may be conducted under 
this section.''.

SEC. 304. ELIMINATION OF LIMITATION ON NUMBER OF WAIVERS THAT MAY BE 
              GRANTED TO A SINGLE STATE FOR DEMONSTRATION PROJECTS.

    Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at 
the end the following:
    ``(i) No Limit on Number of Waivers Granted to, or Demonstration 
Projects That May Be Conducted by, a Single State.--The Secretary shall 
not impose any limit on the number of waivers that may be granted to a 
State, or the number of demonstration projects that a State may be 
authorized to conduct, under this section.''.

SEC. 305. STREAMLINED PROCESS FOR CONSIDERATION OF AMENDMENTS TO AND 
              EXTENSIONS OF DEMONSTRATION PROJECTS REQUIRING WAIVERS.

    Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at 
the end the following:
    ``(j) Streamlined Process for Consideration of Amendments and 
Extensions.--The Secretary shall develop a streamlined process for 
consideration of amendments and extensions proposed by States to 
demonstration projects conducted under this section.''.

SEC. 306. AVAILABILITY OF REPORTS.

    Section 1130 (42 U.S.C. 1320a-9) is further amended by adding at 
the end the following:
    ``(k) Availability of Reports.--The Secretary shall make available 
to any State or other interested party any report provided to the 
Secretary under subsection (f)(2), and any evaluation or report made by 
the Secretary with respect to a demonstration project conducted under 
this section, with a focus on information that may promote best 
practices and program improvements.''.

                   TITLE IV--TANF AND SSI PROVISIONS

SEC. 401. TANF HIGH PERFORMANCE BONUS.

    Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended--
            (1) in subparagraph (D)(ii)--
                    (A) in subclause (I), by striking ``each bonus year 
                equals $200,000,000'' and inserting ``bonus years 1999 
                through 2004 equals $200,000,000, and for bonus years 
                2005 through 2014 equals $100,000,000''; and
                    (B) in subclause (II), by striking 
                ``$1,000,000,000'' and inserting ``$2,200,000,000'';
            (2) in subparagraph (E)(i), by striking ``, 2000'' and all 
        that follows through ``2003'' and inserting ``through 2014''; 
        and
            (3) in subparagraph (F), by inserting ``, and for fiscal 
        years 2004 through 2014 $1,200,000,000,'' after 
        ``$1,000,000,000''.

SEC. 402. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY 
              DETERMINATIONS.

    Section 1633 (42 U.S.C. 1383b) is amended by adding at the end the 
following:
    ``(e)(1) The Commissioner of Social Security shall review 
determinations, made by State agencies pursuant to subsection (a) in 
connection with applications for benefits under this title on the basis 
of blindness or disability, that individuals who have attained 18 years 
of age are blind or disabled as of a specified onset date. The 
Commissioner of Social Security shall review such a determination 
before any action is taken to implement the determination.
    ``(2)(A) In carrying out paragraph (1), the Commissioner of Social 
Security shall review--
            ``(i) at least 20 percent of all determinations referred to 
        in paragraph (1) that are made in fiscal year 2004;
            ``(ii) at least 40 percent of all such determinations that 
        are made in fiscal year 2005; and
            ``(iii) at least 50 percent of all such determinations that 
        are made in fiscal year 2006 or thereafter.
    ``(B) In carrying out subparagraph (A), the Commissioner of Social 
Security shall, to the extent feasible, select for review the 
determinations which the Commissioner of Social Security identifies as 
being the most likely to be incorrect.''.

           TITLE V--EFFECTIVE DATE AND TRANSITION PROVISIONS

SEC. 501. EFFECTIVE DATE; TRANSITION RULE.

    (a) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this Act shall take effect on October 1, 
        2004, and shall apply to payments under parts B and E of the 
        Social Security Act for calendar quarters beginning on or after 
        such date, without regard to whether regulations to implement 
        the amendments are promulgated by such date.
            (2) Delay permitted if state legislation required.--If the 
        Secretary of Health and Human Services determines that State 
        legislation (other than legislation appropriating funds) is 
        required in order for a State plan under part B or E of title 
        IV of the Social Security Act to meet the additional 
        requirements imposed by the amendments made by this Act, the 
        plan shall not be regarded as failing to meet any of the 
        additional requirements before the 1st day of the 1st calendar 
        quarter beginning after the 1st regular session of the State 
        legislature that begins after the effective date specified in 
        paragraph (1). If the State has a 2-year legislative session, 
        then each year of the session is deemed to be a separate 
        regular session of the State legislature.
    (b) Transition Rule.--The amendments made by this Act shall not 
apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to aid, assistance, services, or 
        funds provided before the effective date of this Act under the 
        provisions amended; or
            (2) administrative actions and proceedings commenced, or 
        authorized before such date to be commenced, under such 
        provisions.
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