`[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 667 Placed on Calendar Senate (PCS)]






                                                        Calendar No. 60
109th CONGRESS
  1st Session
                                 S. 667

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2005

  Mr. Grassley, from the Committee on Finance, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Personal Responsibility and 
Individual Development for Everyone Act'' or the ``PRIDE Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
                             TITLE I--TANF

Sec. 101. State plan.
Sec. 102. Family assistance grants.
Sec. 103. Promotion of family formation and healthy marriage.
Sec. 104. Supplemental grant for population increases in certain 
                            States.
Sec. 105. Bonus to reward employment achievement.
Sec. 106. Contingency fund.
Sec. 107. Use of funds.
Sec. 108. Repeal of Federal loan for State welfare programs.
Sec. 109. Work participation requirements.
Sec. 110. Universal engagement and family self-sufficiency plan 
                            requirements; other prohibitions and 
                            requirements.
Sec. 111. Penalties.
Sec. 112. Data collection and reporting.
Sec. 113. Direct funding and administration by Indian tribes.
Sec. 114. Research, evaluations, and national studies.
Sec. 115. Study by the census bureau.
Sec. 116. Funding for child care.
Sec. 117. Definitions.
Sec. 118. Responsible fatherhood program.
Sec. 119. Additional grants.
Sec. 120. Technical corrections.
                     TITLE II--ABSTINENCE EDUCATION

Sec. 201. Extension of abstinence education program.
                        TITLE III--CHILD SUPPORT

Sec. 301. Distribution of child support collected by States on behalf 
                            of children receiving certain welfare 
                            benefits.
Sec. 302. Mandatory review and adjustment of child support orders for 
                            families receiving TANF.
Sec. 303. Report on undistributed child support payments.
Sec. 304. Decrease in amount of child support arrearage triggering 
                            passport denial.
Sec. 305. Use of tax refund intercept program to collect past-due child 
                            support on behalf of children who are not 
                            minors.
Sec. 306. Garnishment of compensation paid to veterans for service-
                            connected disabilities in order to enforce 
                            obligations.
Sec. 307. Improving Federal debt collection practices.
Sec. 308. Maintenance of technical assistance funding.
Sec. 309. Maintenance of Federal parent locator service funding.
Sec. 310. Identification and seizure of assets held by multistate 
                            financial institutions.
Sec. 311. Information comparisons with insurance data.
Sec. 312. Tribal access to the Federal parent locator service.
Sec. 313. Reimbursement of secretary's costs of information comparisons 
                            and disclosure for enforcement of 
                            obligations on higher education act loans 
                            and grants.
Sec. 314. Technical amendment relating to cooperative agreements 
                            between States and Indian tribes.
Sec. 315. Claims upon longshore and harbor workers' compensation for 
                            child support.
Sec. 316. State option to use Statewide automated data processing and 
                            information retrieval system for interstate 
                            cases.
Sec. 317. State law requirement concerning the Uniform Interstate 
                            Family Support Act (UIFSA).
Sec. 318. Grants to States for access and visitation programs.
Sec. 319. Timing of corrective action year for State noncompliance with 
                            child support enforcement program 
                            requirements.
Sec. 320. Requirement that State child support enforcement agencies 
                            seek medical support for children from 
                            either parent.
Sec. 321. Notice to State child support enforcement agency from health 
                            care plan administrator under certain 
                            circumstances when a child loses health 
                            care coverage.
Sec. 322. Authority to continue State program for monitoring and 
                            enforcement of child support orders. 
Sec. 323. Technical amendment relating to information comparisons and 
                            disclosure to assist in Federal debt 
                            collection.
                        TITLE IV--CHILD WELFARE

Sec. 401. Extension of authority to approve demonstration projects.
Sec. 402. Removal of Commonwealth of Puerto Rico IV-E funds from 
                            limitation on payments.
Sec. 403. Authority of Indian tribes to receive Federal funds for 
                            foster care and adoption assistance.
Sec. 404. Technical correction.
                 TITLE V--SUPPLEMENTAL SECURITY INCOME

Sec. 501. Review of State agency blindness and disability 
                            determinations.
Sec. 502. Temporary expansion of length of time-limited eligibility of 
                            qualified aliens for supplemental security 
                            income benefits.
               TITLE VI--TRANSITIONAL MEDICAL ASSISTANCE

Sec. 601. Extension and simplification of the transitional medical 
                            assistance program (TMA).
                       TITLE VII--EFFECTIVE DATE

Sec. 701. Effective date.
Sec. 702. Extension through remainder of fiscal year 2005.

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--TANF

SEC. 101. STATE PLAN.

    (a) Performance Improvement.--Section 402(a) (42 U.S.C. 602(a)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by redesignating clause (vi) as clause 
                        (vii); and
                            (ii) by striking clause (v) and inserting 
                        the following:
                            ``(v) Establish specific measurable 
                        performance objectives for pursuing the 
                        purposes of the program funded under this part 
                        or with qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i)) as 
                        described in section 401(a), including by--
                                    ``(I) establishing objectives (as 
                                determined by the State) after giving 
                                consideration to the criteria used by 
                                the Secretary in establishing 
                                performance targets under section 
                                403(a)(4)(C) (with respect to workplace 
                                attachment and advancement), and such 
                                additional criteria related to other 
                                purposes of the program under this part 
                                as described in section 401(a) as the 
                                Secretary, in consultation with the 
                                National Governors' Association, the 
                                National Conference of State 
                                Legislatures, and the American Public 
                                Human Services Association, shall 
                                establish; and
                                    ``(II) describing the methodology 
                                that the State will use to measure 
                                State performance in relation to each 
                                such objective.
                            ``(vi) Describe any strategies and programs 
                        the State is using or plans to use to address--
                                    ``(I) employment retention and 
                                advancement for recipients of 
                                assistance under the program, including 
                                placement into high-demand jobs, and 
                                whether the jobs are identified using 
                                labor market information;
                                    ``(II) efforts to reduce teen 
                                pregnancy;
                                    ``(III) services for struggling and 
                                noncompliant families, and for clients 
                                with special problems; and
                                    ``(IV) program integration, 
                                including the extent to which 
                                employment and training services under 
                                the program are provided through the 
                                One-Stop delivery system created under 
                                the Workforce Investment Act of 1998, 
                                and the extent to which former 
                                recipients of such assistance have 
                                access to additional core, intensive, 
                                or training services funded through 
                                such Act.''; and
                    (B) in subparagraph (B)--
                            (i) by striking clauses (i) and (iv);
                            (ii) by redesignating clauses (ii) and 
                        (iii) as clauses (i) and (ii), respectively; 
                        and
                            (iii) by inserting after clause (ii) (as so 
                        redesignated by clause (ii)) the following:
                            ``(iii) If the State is undertaking any 
                        strategies or programs to engage faith-based 
                        organizations in the delivery of services 
                        funded under this part, or that otherwise 
                        relate to section 104 of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996, the document shall 
                        describe such strategies and programs.
                            ``(iv) The document shall describe 
                        strategies to improve program management and 
                        performance.
                            ``(v) The document shall include, to the 
                        extent applicable with respect to each program 
                        that provides assistance that will be funded 
                        under this part or with qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)), a description of--
                                    ``(I) the applicable financial and 
                                nonfinancial eligibility rules for 
                                assistance provided under the program, 
                                including income eligibility 
                                thresholds, the treatment of earnings, 
                                asset eligibility rules, and excluded 
                                forms of income;
                                    ``(II) the amount of assistance 
                                provided to needy families, and the 
                                methodology for determining assistance 
                                amounts; and
                                    ``(III) the applicable time limit 
                                policies, including the length of the 
                                time limit, exemption and extension 
                                policies, and procedures for providing 
                                services to families reaching the time 
                                limit and who have lost assistance due 
                                to time limits.
                            ``(vi) The document shall set forth the 
                        criteria for applying section 407(c)(6)(E) to 
                        an adult recipient or minor child head of 
                        household who is the parent or caretaker 
                        relative for a child or adult dependent for 
                        care.
                            ``(vii) The document shall describe how the 
                        State informs families receiving assistance 
                        under the State program funded under this part 
                        that do not include an adult or minor child 
                        head of household of the information required 
                        to be provided to other families under section 
                        408(b)(2)(G) (relating to work support and 
                        other assistance for which the family may be 
                        eligible).'';
            (2) in paragraph (4), by inserting ``and tribal'' after 
        ``local'' each place it appears; and
            (3) by adding at the end the following:
            ``(8) Certification of consultation on provision of 
        transportation aid.--In the case of a State that provides 
        transportation aid under the State program, a certification by 
        the chief executive officer of the State that State and local 
        transportation agencies and planning bodies have been consulted 
        in the development of the plan.''.
    (b) Procedures for Submitting and Amending State Plans.--
            (1) In general.--Subsection (b) of section 402 (42 U.S.C. 
        602(b)) is amended to read as follows:
    ``(b) Procedures for Submitting and Amending State Plans.--
            ``(1) Standard state plan format.--The Secretary shall, 
        after notice and public comment, develop a proposed Standard 
        State Plan Form to be used by States under subsection (a) and 
        for purposes of filing an amendment to the State plan in 
        accordance with paragraph (5). Such form shall be finalized by 
        the Secretary for use by States not later than 9 months after 
        the date of enactment of the Personal Responsibility and 
        Individual Development for Everyone Act.
            ``(2) Requirement for completed plan using standard state 
        plan format by fiscal year 2007.--Notwithstanding any other 
        provision of law, each State shall submit a complete State 
        plan, using the Standard State Plan Form developed under 
        paragraph (1), not later than October 1, 2006, and all 
        subsequent State plan submissions, including any State plan 
        amendments, shall be made using such form.
            ``(3) Public notice and comment.--Prior to submitting a 
        State plan to the Secretary under this section, the State 
        shall--
                    ``(A) make the proposed State plan available to the 
                public through an appropriate State maintained Internet 
                website and through other means as the State determines 
                appropriate;
                    ``(B) allow for a reasonable public comment period 
                of not less than 45 days; and
                    ``(C) make comments received concerning such plan 
                or, at the discretion of the State, a summary of the 
                comments received available to the public through such 
                website and through other means as the State determines 
                appropriate.
            ``(4) Public availability of state plan.--A State shall 
        ensure that the State plan that is in effect for any fiscal 
        year is available to the public through an appropriate State 
        maintained Internet website and through other means as the 
        State determines appropriate.
            ``(5) Amending the state plan.--A State shall file an 
        amendment to the State plan with the Secretary if the State 
        determines that there has been a material change in any 
        information required to be included in the State plan or any 
        other information that the State has included in the plan, 
        including substantial changes in the use of funding. Prior to 
        submitting an amendment to the State plan to the Secretary, the 
        State shall--
                    ``(A) make the proposed amendment available to the 
                public as provided for in paragraph (3)(A);
                    ``(B) allow for a reasonable public comment period 
                of not less than 45 days; and
                    ``(C) make the comments available as provided for 
                in paragraph (3)(C).
            ``(6) State option to delay submission of plan.--A State 
        required to submit a State plan under this part during the 
        period that begins on the date of enactment of the Personal 
        Responsibility and Individual Development for Everyone Act and 
        ends on September 30, 2006, may wait until October 1, 2006, to 
        submit such plan using the Standard State Plan Form developed 
        under paragraph (1).''.
            (2) Conforming amendment.--Section 402 (42 U.S.C. 602) is 
        amended by striking subsection (c).
    (c) Consultation With State Regarding Plan and Design of Tribal 
Programs.--Section 412(b)(1) (42 U.S.C. 612(b)(1)) is amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(G) provides an assurance that each State in 
                which the tribe is located has been consulted regarding 
                the plan and its design.''.
    (d) Performance Measures.--Section 413 (42 U.S.C. 613) is amended 
by adding at the end the following:
    ``(k) Performance Improvement.--The Secretary, in consultation with 
the States, shall develop uniform performance measures designed to 
assess the degree of effectiveness, and the degree of improvement, of 
State programs funded under this part in accomplishing the purposes of 
this part.''.
    (e) Annual Ranking of States.--Section 413(d)(1) (42 U.S.C. 
613(d)(1)) is amended to read as follows:
            ``(1) Annual ranking of states.--
                    ``(A) In general.--The Secretary shall rank 
                annually the States to which grants are paid under 
                section 403 in the order of their success in--
                            ``(i) placing recipients of assistance 
                        under the State program funded under this part 
                        into unsubsidized jobs;
                            ``(ii) the success of the recipients in 
                        retaining employment;
                            ``(iii) the ability of the recipients to 
                        increase their wages;
                            ``(iv) the degree to which recipients have 
                        workplace attachment and advancement;
                            ``(v) reducing the overall welfare 
                        caseload; and
                            ``(vi) when a practicable method for 
                        calculating this information becomes available, 
                        diverting individuals from formally applying to 
                        the State program and receiving assistance.
                    ``(B) Consideration of other factors.--In ranking 
                States under this paragraph, the Secretary shall take 
                into account the average number, and the average 
                proportion, of minor children living at home in 
                families in the State that have incomes below the 
                poverty line and the amount of funding provided each 
                State under this part for such families.''.

SEC. 102. FAMILY ASSISTANCE GRANTS.

    (a) Extension of Authority.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``1996, 1997, 1998, 1999, 2000, 
                2001, 2002, and 2003'' and inserting ``2006 through 
                2010''; and
                    (B) by inserting ``payable to the State for the 
                fiscal year'' before the period; and
            (2) in subparagraph (C), by striking ``for fiscal year 
        2003'' and all that follows through the period, and inserting 
        ``for each of fiscal years 2006 through 2010, $16,566,542,000 
        for grants under this paragraph.''.
    (b) Matching Grants for the Territories.--Section 1108(b)(2) (42 
U.S.C. 1308(b)(2)) is amended by striking ``1997 through 2003'' and 
inserting ``2006 through 2010''.

SEC. 103. PROMOTION OF FAMILY FORMATION AND HEALTHY MARRIAGE.

    (a) State Plans.--Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)), as 
amended by section 101(a), is amended by adding at the end the 
following:
                            ``(viii) Encourage equitable treatment of 
                        healthy 2-parent married families under the 
                        program referred to in clause (i).''.
    (b) Healthy Marriage Promotion Grants; Repeal of Bonus for 
Reduction of Illegitimacy Ratio.--Section 403(a)(2) (42 U.S.C. 
603(a)(2)) is amended to read as follows:
            ``(2) Healthy marriage promotion grants.--
                    ``(A) Authority.--
                            ``(i) In general.--The Secretary shall 
                        award competitive grants to States and Indian 
                        tribes and tribal organizations for not more 
                        than 50 percent of the cost of developing and 
                        implementing innovative programs to promote and 
                        support healthy 2-parent married families.
                            ``(ii) Use of other tanf funds.--A State or 
                        Indian tribe or tribal organization with an 
                        approved tribal family assistance plan may use 
                        funds provided under other grants made under 
                        this part for all or part of the expenditures 
                        incurred for the remainder of the costs 
                        described in clause (i). In the case of a 
                        State, any such funds expended shall not be 
                        considered qualified State expenditures for 
                        purposes of section 409(a)(7).
                    ``(B) Healthy marriage promotion activities.--Funds 
                provided under subparagraph (A) and corresponding State 
                matching funds shall be used to support any of the 
                following programs or activities:
                            ``(i) Public advertising campaigns on the 
                        value of marriage and the skills needed to 
                        increase marital stability and health.
                            ``(ii) Education in high schools on the 
                        importance of healthy marriages and the 
                        characteristics of other healthy relationships 
                        experienced throughout life, including 
                        education on the importance of grounding all 
                        relationships in mutual respect and how earlier 
                        healthy relationships are the building blocks 
                        for later healthy marital relationships.
                            ``(iii) Marriage education, marriage 
                        skills, and relationship skills programs, that 
                        may include parenting skills, financial 
                        management, conflict resolution, and job and 
                        career advancement, for non-married pregnant 
                        women, non-married expectant fathers, and non-
                        married recent parents.
                            ``(iv) Pre-marital education and marriage 
                        skills training for engaged couples and for 
                        couples or individuals interested in marriage.
                            ``(v) Marriage enhancement and marriage 
                        skills training programs for married couples.
                            ``(vi) Divorce reduction programs that 
                        teach relationship skills.
                            ``(vii) Marriage mentoring programs which 
                        use married couples as role models and mentors.
                            ``(viii) Programs to reduce the 
                        disincentives to marriage in means-tested aid 
                        programs, if offered in conjunction with any 
                        activity described in this subparagraph.
                    ``(C) Voluntary participation.--
                            ``(i) In general.--Participation in 
                        programs or activities described in any of 
                        clauses (iii) through (vii) of subparagraph (B) 
                        shall be voluntary.
                            ``(ii) Assurance of informed consent and 
                        option to disenroll.--Each State or Indian 
                        tribe or tribal organization that carries out 
                        programs or activities described in any of 
                        clauses (iii) through (vii) of subparagraph (B) 
                        shall provide the Secretary with an assurance 
                        that each recipient of assistance under the 
                        State program funded under this part who elects 
                        to participate in such programs or activities 
                        shall be informed, prior to making such 
                        election--
                                    ``(I) that such participation is 
                                voluntary;
                                    ``(II) that the recipient may elect 
                                at any time to disenroll from such 
                                programs or activities by notifying the 
                                State or Indian tribe or tribal 
                                organization that the recipient no 
                                longer wants to participate in such 
                                programs or activities;
                                    ``(III) of the process, if any, by 
                                which a recipient who chooses to 
                                withdraw from, or fails to participate 
                                in, such programs or activities may be 
                                required to follow to become engaged in 
                                other programs or activities that are 
                                not programs or activities described in 
                                clauses (iii) through (vii) of 
                                subparagraph (B); and
                                    ``(IV) that the State may reassign 
                                a recipient at any time, in accordance 
                                with the requirements of section 
                                408(b), to other activities that are 
                                not programs or activities described in 
                                clauses (iii) through (vii) of 
                                subparagraph (B).
                            ``(iii) No sanction for refusal or failure 
                        to participate.--
                                    ``(I) In general.--No State or 
                                Indian tribe or tribal organization 
                                shall deny or reduce assistance to a 
                                recipient of assistance under the State 
                                program funded under this part solely 
                                on the basis of the recipient's 
                                withdrawal from, or failure to, 
                                participate in programs or activities 
                                described in clauses (iii) through 
                                (vii) of subparagraph (B).
                                    ``(II) Rule of construction.--
                                Nothing in this subparagraph shall be 
                                construed as precluding a State or 
                                Indian tribe or tribal organization 
                                from requiring a recipient of 
                                assistance under the State program 
                                funded under this part to engage in 
                                programs or activities that are not 
                                programs or activities described in 
                                clauses (iii) through (vii) of 
                                subparagraph (B) or to sanction a 
                                recipient for failure to engage in such 
                                programs or activities or to follow any 
                                such procedures the State may establish 
                                to enroll a recipient in such other 
                                programs or activities.
                    ``(D) General rules governing use of funds.--The 
                rules of section 404, other than subsection (b) of that 
                section, shall not apply to a grant made under this 
                paragraph.
                    ``(E) Requirements for receipt of funds.--A State 
                or Indian tribe or tribal organization may not be 
                awarded a grant under this paragraph unless the State 
                or Indian tribe or tribal organization, as a condition 
                of receiving funds under such a grant--
                            ``(i) consults with domestic violence 
                        organizations that have demonstrated expertise 
                        working with survivors of domestic violence in 
                        developing policies, procedures, programs and 
                        training necessary to appropriately address 
                        domestic violence in families served by 
                        programs and activities funded under such 
                        grant;
                            ``(ii) describes in the application for a 
                        grant under this paragraph--
                                    ``(I) how the programs or 
                                activities proposed to be conducted 
                                will appropriately address issues of 
                                domestic violence; and
                                    ``(II) what the State or Indian 
                                tribe or tribal organization, will do, 
                                to the extent relevant, to ensure that 
                                participation in such programs or 
                                activities is voluntary, and to inform 
                                potential participants that their 
                                involvement is voluntary;
                            ``(iii) establishes a written protocol for 
                        providers and administrators of programs and 
                        activities relevant to the grant that--
                                    ``(I) provides for helping identify 
                                instances or risks of domestic 
                                violence; and
                                    ``(II) specifies the procedures for 
                                making service referrals and providing 
                                protections and appropriate assistance 
                                for identified individuals and 
                                families;
                            ``(iv) establishes performance goals for 
                        funded programs and activities that clarify the 
                        primary objective of such funded programs and 
                        activities is to increase the incidence and 
                        quality of healthy marriages and not solely to 
                        expand the number or percentage of married 
                        couples; and
                            ``(v) submits the annual reports required 
                        under subparagraph (F).
                    ``(F) Annual reports to the secretary.--Each State 
                and Indian tribe or tribal organization awarded a grant 
                under this paragraph shall submit to the Secretary an 
                annual report on the programs and activities funded 
                under the grant that includes the following:
                            ``(i) A description of the written 
                        protocols developed in accordance with the 
                        requirements of subparagraph (E)(iii) for each 
                        program or activity funded under the grant and 
                        how such protocols are used, including specific 
                        policies and procedures for addressing domestic 
                        violence issues within each program or activity 
                        funded under the grant and how confidentiality 
                        issues are addressed.
                            ``(ii) The name of each individual, 
                        organization, or entity that was consulted in 
                        the development of such protocols.
                            ``(iii) A description of each individual, 
                        organization, or entity (if any) that provided 
                        training on domestic violence for the State, 
                        Indian tribe or tribal organization, or for any 
                        subgrantees.
                            ``(iv) A description of any implementation 
                        issues identified with respect to domestic 
                        violence and how such issues were addressed.
                    ``(G) Biannual reports to congress.--Not later than 
                24 months after the date of enactment of the Personal 
                Responsibility and Individual Development for Everyone 
                Act, and every 6 months thereafter, the Secretary shall 
                submit to Congress a report regarding the programs and 
                activities funded with grants awarded under this 
                paragraph. Each report submitted in accordance with 
                this subparagraph shall include the following:
                            ``(i) The name of each program or activity 
                        funded with such grants and the name of each 
                        grantee and subgrantee.
                            ``(ii) The total number of individuals 
                        served under programs or activities funded 
                        under the grant.
                            ``(iii) The total number of individuals 
                        who--
                                    ``(I) completed a program or 
                                activity funded under the grant, 
                                including the number of such 
                                individuals who received assistance 
                                under the State program funded under 
                                this part or with qualified State 
                                expenditures (as defined in section 
                                409(a)(7)(B)(i)) while participating in 
                                such program or activity; and
                                    ``(II) did not complete such a 
                                program or activity, including due to 
                                ceasing to receive assistance under the 
                                State program funded under this part or 
                                with qualified State expenditures (as 
                                defined in section 409(a)(7)(B)(i)) or 
                                for other reasons.
                            ``(iv) A description of the types of 
                        services offered under such programs or 
                        activities.
                            ``(v) The criteria for selection of 
                        programs or activities to be funded under such 
                        grant with respect to the award of grants by 
                        the Secretary and the awarding of funds to 
                        subgrantees.
                            ``(vi) A description of the activities 
                        carried out by the Secretary to support 
                        grantees and subgrantees in responding to 
                        domestic violence issues.
                            ``(v) A summary of the written domestic 
                        violence protocols used by grantees and 
                        subgrantees.
                            ``(vii) A summary of who the grantees and 
                        subgrantees consulted with in developing such 
                        protocols.
                            ``(viii) A summary of the training provided 
                        to grantees and subgrantees on domestic 
                        violence.
                            ``(ix) A list of the organizations, 
                        entities, and activities funded under sections 
                        103(c) and 114(e) of the Personal 
                        Responsibility and Individual Development for 
                        Everyone Act.
                    ``(H) Domestic violence defined.--In this 
                paragraph, the term `domestic violence' has the meaning 
                given that term in section 402(a)(7)(B).
                    ``(I) Appropriation.--
                            ``(i) In general.--Out of any money in the 
                        Treasury of the United States not otherwise 
                        appropriated, there are appropriated for each 
                        of fiscal years 2005 through 2010, $100,000,000 
                        for grants under this paragraph.
                            ``(ii) Extended availability of funds.--
                                    ``(I) In general.--Funds 
                                appropriated under clause (i) for each 
                                of fiscal years 2006 through 2010 shall 
                                remain available to the Secretary until 
                                expended.
                                    ``(II) Authority for grant 
                                recipients.--A State or Indian tribe or 
                                tribal organization may use funds made 
                                available under a grant awarded under 
                                this paragraph without fiscal year 
                                limitation pursuant to the terms of the 
                                grant.''.
    (c) Best Practices for Addressing Domestic Violence.--Section 413 
(42 U.S.C. 613) as amended by section 101(d), is amended by adding at 
the end the following:
    ``(l) Best Practices for Addressing Domestic Violence.--
            ``(1) In general.--The Secretary shall, by grant, contract, 
        or interagency agreement, develop and implement programs that 
        are designed to address domestic violence as a barrier to 
        healthy relationships, marriage, and economic security. 
        Programs developed and implemented under this subsection shall 
        include--
                    ``(A) training for caseworkers administering the 
                State program funded under this part;
                    ``(B) technical assistance;
                    ``(C) the provision of voluntary services for 
                victims of such violence; and
                    ``(D) activities related to the prevention of 
                domestic violence.
            ``(2) Domestic violence defined.--In this subsection, the 
        term `domestic violence' has the meaning given that term in 
        section 402(a)(7)(B).
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection, $10,000,000 
        for each of fiscal years 2006 through 2010. Amounts 
        appropriated to carry out this subsection shall be in addition 
        to and not in lieu of amounts otherwise appropriated to carry 
        out programs to address domestic violence.''.
    (d) Counting of Spending on Non-Eligible Families To Prevent and 
Reduce Incidence of Out-of-Wedlock Births, Encourage Formation and 
Maintenance of Healthy 2-Parent Married Families, or Encourage 
Responsible Fatherhood.--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) Counting of spending on non-
                                eligible families to prevent and reduce 
                                incidence of out-of-wedlock births, 
                                encourage formation and maintenance of 
                                healthy 2-parent married families, or 
                                encourage responsible fatherhood.--
                                Subject to subclauses (II) and (III), 
                                the term `qualified State expenditures' 
                                includes the total expenditures by the 
                                State during the fiscal year under all 
                                State programs for a purpose described 
                                in paragraph (3) or (4) of section 
                                401(a).''.
    (e) Purposes.--Section 401(a)(4) (42 U.S.C. 601(a)(4)) is amended 
by striking ``two-parent families'' and inserting ``healthy 2-parent 
married families, and encourage responsible fatherhood''.

SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION INCREASES IN CERTAIN 
              STATES.

    Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is amended--
            (1) in clause (i), by striking ``2002 and 2003'' and 
        inserting ``2006 through 2009'';
            (2) in clause (ii), by striking ``March 31, 2005'' and 
        inserting ``fiscal year 2009''; and
            (3) in clause (iii), by striking ``2002 and 2003'' and 
        inserting ``2006 through 2009''.

SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVEMENT.

    (a) In General.--Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended 
to read as follows:
            ``(4) Bonus to reward employment achievement.--
                    ``(A) In general.--The Secretary shall make a grant 
                pursuant to this paragraph to each State for each bonus 
                year for which the State is an employment achievement 
                State.
                    ``(B) Amount of grant.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall determine the amount of the 
                        grant payable under this paragraph to an 
                        employment achievement State for a bonus year, 
                        which shall be based on the performance of the 
                        State as determined under subparagraph (D)(i) 
                        for the fiscal year that immediately precedes 
                        the bonus year.
                            ``(ii) Limitation.--The amount payable to a 
                        State under this paragraph for a bonus year 
                        shall not exceed 5 percent of the State family 
                        assistance grant.
                    ``(C) Formula for measuring state performance.--
                            ``(i) In general.--Subject to clause (ii), 
                        not later than October 1, 2006, the Secretary, 
                        in consultation with the States, shall develop 
                        a formula for measuring State performance in 
                        operating the State program funded under this 
                        part so as to achieve the goal of workplace 
                        attachment and advancement for families 
                        receiving assistance under the program (and for 
                        families diverted from receiving such 
                        assistance if, and only to the extent that, the 
                        Secretary determines that it is possible to 
                        measure State performance with respect to such 
                        families), as measured on an absolute basis and 
                        on the basis of improvement in State 
                        performance.
                            ``(ii) Special rule for bonus years 2006 
                        and 2007.--For the purposes of awarding a bonus 
                        under this paragraph for bonus year 2006 or 
                        2007, the Secretary may measure the performance 
                        of a State in fiscal year 2005 or 2006 (as the 
                        case may be) using the job entry rate, job 
                        retention rate, and earnings gain rate 
                        components of the formula developed under 
                        section 403(a)(4)(C) as in effect immediately 
                        before the effective date of this paragraph.
                    ``(D) Determination of state performance.--For each 
                bonus year, the Secretary shall--
                            ``(i) use the formula developed under 
                        subparagraph (C) to determine the performance 
                        of each eligible State for the fiscal year that 
                        precedes the bonus year; and
                            ``(ii) prescribe performance standards in 
                        such a manner so as to ensure that--
                                    ``(I) the average annual total 
                                amount of grants to be made under this 
                                paragraph for--
                                            ``(aa) each of bonus years 
                                        2006 through 2008 equals 
                                        $50,000,000; and
                                            ``(bb) each of bonus years 
                                        2009 through 2011 equals 
                                        $100,000,000; and
                                    ``(II) the total amount of grants 
                                to be made under this paragraph for all 
                                bonus years equals $450,000,000.
                    ``(E) Definitions.--In this paragraph:
                            ``(i) Bonus year.--The term `bonus year' 
                        means each of fiscal years 2006 through 2011.
                            ``(ii) Employment achievement state.--The 
                        term `employment achievement State' means, with 
                        respect to a bonus year, an eligible State 
                        whose performance determined pursuant to 
                        subparagraph (D)(i) for the fiscal year 
                        preceding the bonus year equals or exceeds the 
                        performance standards prescribed under 
                        subparagraph (D)(ii) for such preceding fiscal 
                        year.
                    ``(F) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for the period of 
                fiscal years 2006 through 2011, $450,000,000 for grants 
                under this paragraph.
                    ``(G) Grants for indian tribes.--
                            ``(i) Reservation of funds.--Of the amount 
                        appropriated under subparagraph (F), the 
                        Secretary shall reserve an amount equal to 2 
                        percent of such amount for making grants to 
                        Indian tribes.
                            ``(ii) Application.--This paragraph shall 
                        apply with respect to Indian tribes in the same 
                        manner in which this paragraph applies with 
                        respect to States.
                            ``(iii) Consultation.--The Secretary shall 
                        consult with Indian tribes in determining the 
                        criteria under which to make grants to Indian 
                        tribes and tribal organizations under this 
                        paragraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of enactment of this Act.

SEC. 106. CONTINGENCY FUND.

    (a) Contingency Funding Available to Needy States.--Section 403(b) 
(42 U.S.C. 603(b)) is amended--
            (1) by striking paragraphs (1) through (3) and inserting 
        the following:
            ``(1) Contingency fund grants.--
                    ``(A) Payments.--Subject to subparagraphs (C) and 
                (D), and out of funds appropriated under subparagraph 
                (F), each State shall receive a contingency fund grant 
                for each eligible month in which the State is a needy 
                State under paragraph (3).
                    ``(B) Monthly contingency fund grant amount.--For 
                each eligible month in which a State is a needy State, 
                the State shall receive a contingency fund grant equal 
                to the product of--
                            ``(i) the applicable percentage (as defined 
                        under subparagraph (E)(i)) of the applicable 
                        benefit level (as defined in subparagraph 
                        (E)(ii)); and
                            ``(ii) the amount by which the total number 
                        of families that received assistance under the 
                        State program funded under this part in the 
                        most recently concluded 3-month period for 
                        which data are available from the State exceeds 
                        a 5-percent increase in the number of such 
                        families in the corresponding 3-month period in 
                        either of the 2 most recent preceding fiscal 
                        years and that was due, in large measure, to 
                        economic conditions rather than State policy 
                        changes.
                    ``(C) Limitation.--The total amount paid to a 
                single State under subparagraph (A) during a fiscal 
                year shall not exceed the amount equal to 10 percent of 
                the State family assistance grant (as defined under 
                subparagraph (B) of subsection (a)(1)).
                    ``(D) Payments to indian tribes.--
                            ``(i) In general.--Of the total amount 
                        appropriated pursuant to subparagraph (F), 
                        $25,000,000 of such amount shall be reserved 
                        for making payments to Indian tribes with 
                        approved tribal family assistance plans that 
                        are operating in situations of increased 
                        economic hardship.
                            ``(ii) Determination of criteria for tribal 
                        access.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the Secretary, in 
                                consultation with Indian tribes with 
                                approved tribal family assistance 
                                plans, shall determine the criteria for 
                                access by such tribes to the amount 
                                reserved under clause (i).
                                    ``(II) Inclusion of certain 
                                factors.--Such criteria shall include 
                                factors related to increases in 
                                unemployment and loss of employers.
                            ``(iii) Application of requirements for 
                        payments to states.--The Secretary, in 
                        consultation with Indian tribes with approved 
                        tribal family assistance plans located 
                        throughout the United States, shall determine 
                        the extent to which requirements of States for 
                        payments from the contingency fund established 
                        under this subsection shall apply to Indian 
                        tribes receiving payments under this 
                        subparagraph.
                    ``(E) Definitions.--In this paragraph:
                            ``(i) Applicable percentage.--The term 
                        `applicable percentage' means the Federal 
                        medical assistance percentage for the State (as 
                        defined in section 1905(b)).
                            ``(ii) Applicable benefit level.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the term `applicable 
                                benefit level' means the amount equal 
                                to the maximum cash assistance grant 
                                for a family consisting of 3 
                                individuals under the State program 
                                funded under this part.
                                    ``(II) Rule for states with more 
                                than 1 maximum level.--In the case of a 
                                State that has more than 1 maximum cash 
                                assistance grant level for families 
                                consisting of 3 individuals, the basic 
                                assistance cost shall be the amount 
                                equal to the maximum cash assistance 
                                grant level applicable to the largest 
                                number of families consisting of 3 
                                individuals receiving assistance under 
                                the State program funded under this 
                                part.
                    ``(F) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there is appropriated for the period of 
                fiscal years 2006 through 2010, such sums as are 
                necessary for making contingency fund grants under this 
                subsection in a total amount not to exceed 
                $2,000,000,000.'';
            (2) by redesignating paragraph (4) as paragraph (2); and
            (3) in paragraph (2), as so redesignated--
                    (A) by striking ``(3)(A)'' and inserting ``(1)''; 
                and
                    (B) by striking ``2-month period that begins with 
                any'' and inserting ``fiscal year quarter that includes 
                a''.
    (b) Modification of Definition of Needy State.--Section 403(b), as 
amended by subsection (a), (42 U.S.C. 603(b)) is further amended--
            (1) by striking paragraphs (5) and (6);
            (2) by redesignating paragraphs (7) and (8) as paragraphs 
        (5) and (6), respectively; and
            (3) by inserting after paragraph (2) (as redesignated by 
        subsection (a)(2)) the following:
            ``(3) Initial determination of whether a state qualifies as 
        a needy state.--
                    ``(A) In general.--For purposes of paragraph (1), 
                subject to paragraph (4), a State will be initially 
                determined to be a needy State for a month if, as 
                determined by the Secretary--
                            ``(i) the monthly average of the 
                        unduplicated number of families that received 
                        assistance under the State program funded under 
                        this part in the most recently concluded 3-
                        month period for which data are available from 
                        the State increased by at least 5 percent over 
                        the number of such families that received such 
                        benefits in the corresponding 3-month period in 
                        either of the 2 most recent preceding fiscal 
                        years;
                            ``(ii) the increase in the number of such 
                        families for the State was due, in large 
                        measure, to economic conditions rather than 
                        State policy changes; and
                            ``(iii) the State satisfies any of the 
                        following criteria:
                                    ``(I) The average rate of total 
                                unemployment in the State (seasonally 
                                adjusted) for the period consisting of 
                                the most recent 3 months for which data 
                                are available has increased by the 
                                lesser of 1.5 percentage points or by 
                                50 percent over the corresponding 3-
                                month period in either of the 2 most 
                                recent preceding fiscal years.
                                    ``(II) The average insured 
                                unemployment rate for the most recent 
                                13 weeks for which data are available 
                                has increased by 1 percentage point 
                                over the corresponding 13-week period 
                                in either of the 2 most recent 
                                preceding fiscal years.
                                    ``(III) As determined by the 
                                Secretary of Agriculture, the monthly 
                                average number of households (as of the 
                                last day of each month) that 
                                participated in the food stamp program 
                                in the State in the then most recently 
                                concluded 3-month period for which data 
                                are available exceeds by at least 15 
                                percent the monthly average number of 
                                households (as of the last day of each 
                                month) in the State that participated 
                                in the food stamp program in the 
                                corresponding 3-month period in either 
                                of the 2 most recent preceding fiscal 
                                years, but only if the Secretary and 
                                the Secretary of Agriculture concur in 
                                the determination that the State's 
                                increased caseload was due, in large 
                                measure, to economic conditions rather 
                                than changes in Federal or State 
                                policies related to the food stamp 
                                program.
                    ``(B) Duration.--A State that qualifies as a needy 
                State--
                            ``(i) under subclause (I) or (II) of 
                        subparagraph (A)(iii), shall be considered a 
                        needy State until the State's average rate of 
                        total unemployment or the State's insured 
                        unemployment rate, respectively, falls below 
                        the level attained in the applicable period 
                        that was first used to determine that the State 
                        qualified as a needy State under that 
                        subparagraph (and in the case of the insured 
                        unemployment rate, without regard to any 
                        declines in the rate that are the result of 
                        seasonal variation); and
                            ``(ii) under subclause (III) of 
                        subparagraph (A)(iii), shall be considered a 
                        needy State so long as the State meets the 
                        criteria for being considered a needy State 
                        under that subparagraph.
            ``(4) Exceptions.--
                    ``(A) Unexpended balances.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (3), a State that has unexpended TANF 
                        balances in an amount that exceeds 30 percent 
                        of the total amount of grants received by the 
                        State under subsection (a) for the most 
                        recently completed fiscal year (other than 
                        welfare-to-work grants made under paragraph (5) 
                        of that subsection prior to fiscal year 2000), 
                        shall not be a needy State under this 
                        subsection.
                            ``(ii) Definition of unexpended tanf 
                        balances.--In clause (i), the term `unexpended 
                        TANF balances' means the lesser of--
                                    ``(I) the total amount of grants 
                                made to the State (regardless of the 
                                fiscal year in which such funds were 
                                awarded) under subsection (a) (other 
                                than welfare-to-work grants made under 
                                paragraph (5) of that subsection prior 
                                to fiscal year 2000) but not yet 
                                expended as of the end of the fiscal 
                                year preceding the fiscal year for 
                                which the State would, in the absence 
                                of this subparagraph, be considered a 
                                needy State under this subsection; and
                                    ``(II) the total amount of grants 
                                made to the State under subsection (a) 
                                (other than welfare-to-work grants made 
                                under paragraph (5) of that subsection 
                                prior to fiscal year 2000) but not yet 
                                expended as of the end of such 
                                preceding fiscal year, plus the 
                                difference between--
                                            ``(aa) the pro rata share 
                                        of the current fiscal year 
                                        grant to be made under 
                                        subsection (a) to the State; 
                                        and
                                            ``(bb) current year 
                                        expenditures of the total 
                                        amount of grants made to the 
                                        State under subsection (a) 
                                        (regardless of the fiscal year 
                                        in which such funds were 
                                        awarded) (other than such 
                                        welfare-to-work grants) through 
                                        the end of the most recent 
                                        calendar quarter.
                    ``(B) Failure to satisfy maintenance of effort 
                requirement.--Notwithstanding paragraph (3), a State 
                that fails to satisfy the requirement of section 
                409(a)(7) with respect to a fiscal year shall not be a 
                needy State under this subsection for that fiscal 
                year.''.
    (c) Clarification of Reporting Requirements.--Paragraph (6) of 
section 403(b) (42 U.S.C. 603(b)), as redesignated by subsection 
(b)(2), is amended by striking ``on the status of the Fund'' and 
inserting ``on the States that qualified for contingency funds and the 
amount of funding awarded under this subsection''.
    (d) Elimination of Penalty for Failure To Maintain 100 Percent 
Maintenance of Effort.--
            (1) In general.--Section 409(a) (42 U.S.C. 609(a)) is 
        amended--
                    (A) by striking paragraph (10); and
                    (B) by redesignating paragraphs (11) through (14) 
                as paragraphs (10) through (13), respectively.
            (2) Conforming amendments.--Section 409 (42 U.S.C. 609) is 
        amended--
                    (A) in subsection (a)(7)(B)(i)(III), by striking 
                ``(12)'' and inserting ``(11)'';
                    (B) in subsection (b)(2), by striking ``(10), (12), 
                or (13)'' and inserting ``(11), or (12)''; and
                    (C) in subsection (c)(4), by striking ``(10), (12), 
                or (13)'' and inserting ``(11), or (12)''.

SEC. 107. USE OF FUNDS.

    (a) Repeal of Treatment of Interstate Immigrants.--Section 404 (42 
U.S.C. 604) is amended by striking subsection (c) and inserting the 
following:
    ``(c) [Reserved].''.
    (b) Social Services Block Grant.--
            (1) Restoration of Authority To Transfer Up to 10 Percent 
        of TANF Funds.--Section 404(d)(2) (42 U.S.C. 604(d)(2)) is 
        amended to read as follows:
            ``(2) Limitation on amount transferable to title xx 
        programs.--A State may use not more than 10 percent of the 
        amount of any grant made to the State under section 403(a) for 
        a fiscal year to carry out State programs pursuant to title 
        XX.''.
            (2) Increase in social services block grant funds.--Section 
        2003(c)(11) (42 U.S.C. 1397b(c)(11)) is amended by inserting 
        ``, except that with respect to each of fiscal years 2006 
        through 2010, the amount shall be $1,900,000,000'' after 
        ``thereafter''.
    (c) Clarification of Authority of States To Use TANF Funds Carried 
Over From Prior Years To Provide TANF Benefits and Services.--Section 
404(e) (42 U.S.C. 604(e)) is amended to read as follows:
    ``(e) Authority To Carryover or Reserve Certain Amounts for 
Benefits or Services or for Future Contingencies.--
            ``(1) Carryover.--A State or Indian tribe may use a grant 
        made to the State or Indian tribe under this part for any 
        fiscal year to provide, without fiscal year limitation, any 
        benefit or service that may be provided under the State or 
        tribal program funded under this part.
            ``(2) Contingency reserve.--A State or Indian tribe may 
        designate any portion of a grant made to the State or Indian 
        tribe under this part as a contingency reserve for future 
        needs, and may use any amount so designated to provide, without 
        fiscal year limitation, any benefit or service that may be 
        provided under the State or tribal program funded under this 
        part. If a State or Indian tribe so designates a portion of 
        such a grant, the State or Indian tribe shall include in its 
        report under section 411(a) the amount so designated.''.
    (d) State Option To Establish Undergraduate Postsecondary or 
Vocational Educational Program.--
            (1) In general.--Section 404 (42 U.S.C. 604) is amended by 
        adding at the end the following:
    ``(l) Authority To Establish Undergraduate Postsecondary or 
Vocational Educational Program.--
            ``(1) In general.--Subject to the succeeding paragraphs of 
        this subsection, a State to which a grant is made under section 
        403 may use the grant or State funds that are qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)) to 
        establish a program under which an eligible participant (as 
        defined in paragraph (3)) may be provided support services 
        described in paragraph (5) and, subject to paragraph (6), may 
        have hours of participation in such program counted as being 
        engaged in work for purposes of determining monthly 
        participation rates under section 407(b)(1)(B)(i).
            ``(2) State plan requirement.--In order to establish a 
        program under this subsection, a State shall describe (in an 
        addendum to the State plan submitted under section 402) the 
        applicable eligibility criteria that is designed to limit 
        participation in the program to only those individuals--
                    ``(A) whose past earnings indicate that the 
                individuals cannot qualify for employment that pays 
                enough to allow them to obtain self-sufficiency (as 
                determined by the State); and
                    ``(B) for whom enrollment in the program will 
                prepare the individuals for higher-paying occupations 
                that are in demand in the State.
            ``(3) Definition of eligible participant.--In this 
        subsection, the term `eligible participant' means an 
        individual--
                    ``(A) who--
                            ``(i) receives assistance under the State 
                        program funded under this part;
                            ``(ii) is a former recipient of assistance 
                        under the State program funded under this part; 
                        or
                            ``(iii) is a needy parent in a family with 
                        children eligible for benefits or services 
                        funded under a grant made under section 403 or 
                        with State funds that are qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)); and
                    ``(B) who--
                            ``(i) is enrolled in a postsecondary 2- or 
                        4-year degree program or a vocational 
                        educational training program; and
                            ``(ii) during the period the individual 
                        participates in the program established under 
                        this subsection, maintains satisfactory 
                        academic progress, as defined by the 
                        institution operating the postsecondary 2- or 
                        4-year degree program or vocational educational 
                        training program in which the individual is 
                        enrolled.
            ``(4) Required time periods for completion of degree or 
        vocational educational training program.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                eligible participant participating in a program 
                established under this subsection shall be required to 
                complete the requirements of a postsecondary 2- or 4-
                year degree program or a vocational educational 
                training program within the normal timeframe (as 
                determined by the institution operating the 2- or 4-
                year degree program or a vocational educational 
                training program) for full-time students seeking the 
                particular degree or completing the vocational 
                educational training program.
                    ``(B) Exception.--
                            ``(i) In general.--For good cause, the 
                        State may allow an eligible participant to 
                        complete their degree requirements or 
                        vocational educational training program within 
                        a period not to exceed 1\1/2\ times the normal 
                        timeframe established under subparagraph (A) 
                        (unless further modification is required by the 
                        Americans with Disabilities Act of 1990 (42 
                        U.S.C. 12101 et seq.), or section 504 of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 794)) and 
                        may modify the requirements applicable to an 
                        individual participating in the program. For 
                        purposes of the preceding sentence, good cause 
                        includes, with respect to an eligible 
                        participant, the presence of 1 or more 
                        significant barriers, as determined by the 
                        State, to normal participation by the 
                        participant, such as the need to care for a 
                        family member with special needs.
                            ``(ii) Inclusion of barriers in state plan 
                        addendum.--A State shall identify and define in 
                        the addendum to the State plan under paragraph 
                        (2) the barriers that make an eligible 
                        participant eligible for the good cause 
                        exception permitted under clause (i).
            ``(5) Support services described.--For purposes of 
        paragraph (1), the support services described in this paragraph 
        include any or all of the following during the period the 
        eligible participant is participating in the program 
        established under this subsection:
                    ``(A) Child care.
                    ``(B) Transportation services.
                    ``(C) Payment for books and supplies.
                    ``(D) Other services provided under policies 
                determined by the State to ensure coordination and lack 
                of duplication with other programs available to provide 
                support services.
            ``(6) Rules for inclusion in monthly work participation 
        rates.--
                    ``(A) Families counted as participating if they 
                meet the requirements of subparagraph (b) or (c).--
                Subject to subparagraph (D), for each eligible 
                participant who receives assistance under the State 
                program funded under this part, a State may elect, for 
                purposes of determining monthly participation rates 
                under section 407(b)(1)(B)(i), to include such 
                participant in the determination of such rates in 
                accordance with subparagraph (B) or (C).
                    ``(B) Full or partial credit for hours of 
                participation in educational or related activities.--
                            ``(i) In general.--Subject to clause (iv), 
                        an eligible participant who participates in 
                        educational or related activities (as 
                        determined by the State in accordance with 
                        clause (ii)) under a program established under 
                        this subsection shall be given credit for the 
                        number of hours of such participation to the 
                        extent that an adult recipient or minor child 
                        head of household would be given credit under 
                        section 407(c) for being engaged in the same 
                        number of hours of work activities described in 
                        paragraph (1), (2), (3), (4), (5), (6), (7), 
                        (8), or (12) of section 407(d).
                            ``(ii) Related activities.--For purposes of 
                        clause (i), related activities shall include--
                                    ``(I) work activities described in 
                                paragraph (1), (2), (3), (4), (5), (6), 
                                (7), (8), or (12) of section 407(d);
                                    ``(II) work study, practicums, 
                                internships, clinical placements, 
                                laboratory or field work, or such other 
                                activities that will enhance the 
                                eligible participant's employability in 
                                the participant's field of study, as 
                                determined by the State; or
                                    ``(III) subject to clause (iii), 
                                study time.
                            ``(iii) Limitation on inclusion of study 
                        time.--For purposes of determining hours per 
                        week of participation by an eligible 
                        participant under a program established under 
                        this subsection, a State may not count study 
                        time of less than 1 hour for every hour of 
                        class time or more than 2 hours for every hour 
                        of class time.
                            ``(iv) Total number of hours limited to 
                        being counted as 1 family.--In no event may 
                        hours per week of participation by an eligible 
                        participant under a program established under 
                        this subsection result in the participant's 
                        family being counted as more than 1 family for 
                        purposes of determining monthly participation 
                        rates under section 407(b)(1)(B)(i).
                    ``(C) Full credit for being engaged in direct work 
                activities for certain hours per week.--
                            ``(i) In general.--A family that includes 
                        an eligible participant who, in addition to 
                        complying with the full-time educational 
                        participation requirements of the postsecondary 
                        2- or 4-year degree program or vocational 
                        educational training program that the 
                        participant is enrolled in, participates in an 
                        activity described in subclause (I) or (II) of 
                        subparagraph (B)(ii) for not less than the 
                        number of hours required per week under clause 
                        (ii) shall be counted as 1 family.
                            ``(ii) Required hours per week.--For 
                        purposes of clause (i), subject to clause 
                        (iii), the number of hours per week are--
                                    ``(I) 6 hours per week during the 
                                first 12-month period that an eligible 
                                participant participates in a program 
                                established under this subsection;
                                    ``(II) 8 hours per week during the 
                                second 12-month period of such 
                                participation;
                                    ``(III) 10 hours per week during 
                                the third 12-month period of such 
                                participation; and
                                    ``(IV) 12 hours per week during the 
                                fourth or any other succeeding 12- 
                                month period of such participation.
                            ``(iii) Modification of requirements for 
                        good cause.--A State may modify the number of 
                        hours per week required under clause (ii) for 
                        good cause. For purposes of the preceding 
                        sentence, good cause includes, with respect to 
                        an eligible participant, the presence of 1 or 
                        more significant barriers, as determined by the 
                        State, to normal participation by the 
                        participant, such as the need to care for a 
                        family member with special needs.
                    ``(D) Cap on number of participants that may be 
                included in monthly work participation rates.--The 
                monthly number of families that include an eligible 
                participant and that are treated as being engaged in 
                work may not exceed an amount equal to 10 percent of 
                the families to which assistance is provided under the 
                State program funded under this part for such month.
            ``(7) Applicability.--Nothing in this subsection shall be 
        construed as restricting the authority or discretion of a State 
        in the use of grants provided under section 403 or the 
        expenditure of qualified State expenditures (as defined in 
        section 409(a)(7)(B)(i)) for programs or activities other than 
        the program established under this subsection.''.
            (2) Conforming amendment.--Section 407(d)(8) (42 U.S.C. 
        607(d)(8)) is amended by inserting ``other than an individual 
        participating in a program established under section 404(l)'' 
        after ``individual''.

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

    (a) Repeal.--Section 406 (42 U.S.C. 606) is repealed.
    (b) Conforming Amendments.--
            (1) Section 409 (42 U.S.C. 609), as amended by section 
        106(d)(2), is amended--
                    (A) in subsection (a), by striking paragraph (6);
                    (B) in subsection (b)(2), by striking ``(6),''; and
                    (C) in subsection (c)(4), by striking ``(6),''.
            (2) Section 412 (42 U.S.C. 612) is amended by striking 
        subsection (f) and redesignating subsections (g) through (i) as 
        subsections (f) through (h), respectively.
            (3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 
        striking ``406,''.

SEC. 109. WORK PARTICIPATION REQUIREMENTS.

    (a) Elimination of Separate Work Participation Rate for 2-Parent 
Families Beginning With Fiscal Year 2003.--
            (1) In general.--Section 407 (42 U.S.C. 607) is amended--
                    (A) in subsection (a)--
                            (i) in the heading, by striking 
                        ``Participation Rate Requirements'' and all 
                        that follows through ``A State'' and inserting 
                        ``Participation Rate Requirements.--A State''; 
                        and
                            (ii) by striking paragraph (2);
                    (B) in subsection (b)--
                            (i) by striking paragraph (2);
                            (ii) in paragraph (4), by striking 
                        ``paragraphs (1)(B) and (2)(B)'' and inserting 
                        ``determining monthly participation rates under 
                        paragraph (1)(B)''; and
                            (iii) in paragraph (5), by striking 
                        ``rates'' and inserting ``rate''; and
                    (C) in subsection (c)--
                            (i) in paragraph (1)--
                                    (I) by striking ``General rules.--
                                '' and all that follows through ``For 
                                purposes'' in subparagraph (A) and 
                                inserting ``General rule.--For 
                                purposes''; and
                                    (II) by striking subparagraph (B); 
                                and
                            (ii) in paragraph (2)(D)--
                                    (I) by striking ``paragraphs 
                                (1)(B)(i) and (2)(B) of subsection 
                                (b)'' and inserting ``subsection 
                                (b)(1)(B)(i)''; and
                                    (II) by striking ``and in 2-parent 
                                families, respectively,''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect as if enacted on October 1, 2002, and any 
        penalty imposed under section 409(a)(3) of the Social Security 
        Act (42 U.S.C. 609(a)(3)) against a State for failure to comply 
        with the minimum participation rate applicable to 2-parent 
        families under 407(a)(2) of such Act (42 U.S.C. 607(a)(2)), as 
        in effect on the day before such date, with respect to fiscal 
        year 2002, 2003, or 2004 is rescinded.
    (b) Minimum Participation Rates.--Section 407(a) (42 U.S.C. 
607(a)), as amended by subsection (a)(1)(A), is amended to read as 
follows:
    ``(a) Participation Rate Requirements.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve a minimum 
        participation rate with respect to all families receiving 
        assistance under the State program funded under this part that 
        is equal to not less than--
                    ``(A) 50 percent for fiscal year 2006;
                    ``(B) 55 percent for fiscal year 2007;
                    ``(C) 60 percent for fiscal year 2008;
                    ``(D) 65 percent for fiscal year 2009; and
                    ``(E) 70 percent for fiscal year 2010 and each 
                succeeding fiscal year.''.
    (c) Limitation on Reduction of Participation Rate Through 
Application of Credits.--Section 407(a) (42 U.S.C. 607(a)), as amended 
by subsection (b), is amended by adding at the end the following:
            ``(2) Limitation on reduction of participation rate through 
        application of credits.--Notwithstanding any other provision of 
        this part, the net effect of any percentage reduction in the 
        minimum participation rate otherwise required under this 
        section with respect to families receiving assistance under the 
        State program funded under this part as a result of the 
        application of any employment credit, caseload reduction 
        credit, or other credit against such rate for a fiscal year, 
        shall not exceed--
                    ``(A) 40 percentage points, in the case of fiscal 
                year 2006;
                    ``(B) 35 percentage points, in the case of fiscal 
                year 2007;
                    ``(C) 30 percentage points, in the case of fiscal 
                year 2008;
                    ``(D) 25 percentage points, in the case of fiscal 
                year 2009; or
                    ``(E) 20 percentage points, in the case of fiscal 
                year 2010 or any fiscal year thereafter.''.
    (d) Replacement of Caseload Reduction Credit With Employment 
Credit.--
            (1) Employment credit to reward states in which families 
        leave welfare for work; additional credit for families with 
        higher earnings.--
                    (A) In general.--Section 407(b) (42 U.S.C. 607(b)), 
                as amended by subsection (a)(1)(B)(i), is amended by 
                inserting after paragraph (1) the following:
            ``(2) Employment credit.--
                    ``(A) In general.--Subject to subsection (a)(2), 
                beginning with fiscal year 2008, the Secretary shall, 
                by regulation, reduce the minimum participation rate 
                otherwise applicable to a State under this subsection 
                for a fiscal year by the number of percentage points in 
                the employment credit for the State for the fiscal 
                year, as determined by the Secretary--
                            ``(i) using information in the National 
                        Directory of New Hires;
                            ``(ii) with respect to a recipient of 
                        assistance or former recipient of assistance 
                        under the State program funded under this part 
                        who is placed with an employer whose hiring 
                        information is not reported to the National 
                        Directory of New Hires, using quarterly wage 
                        information submitted by the State to the 
                        Secretary not later than such date as the 
                        Secretary shall prescribe in regulations; or
                            ``(iii) with respect to families described 
                        in subclause (II) or (III) of subparagraph 
                        (B)(ii), using such other data (including data 
                        relating to qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i)) or any 
                        other State programs that are used to provide 
                        nonrecurring short-term benefits or substantial 
                        child care or transportation assistance to such 
                        families) as the Secretary may require in order 
                        to determine the employment credit for a State 
                        under this paragraph.
                    ``(B) Calculation of credit.--
                            ``(i) In general.--The employment credit 
                        for a State for a fiscal year is an amount 
                        equal to the sum of the amounts determined 
                        under clause (ii), divided by the amount 
                        determined under clause (iii).
                            ``(ii) Numerator.--For purposes of clause 
                        (i), the amounts determined under this clause 
                        are the following:
                                    ``(I) Twice the quarterly average 
                                unduplicated number of families that 
                                include an adult or minor child head of 
                                household recipient of assistance under 
                                the State program funded under this 
                                part, that ceased to receive such 
                                assistance for at least 2 consecutive 
                                months following case closure for the 
                                family during the applicable period (as 
                                defined in clause (v)), that did not 
                                receive assistance under a separate 
                                State-funded program during such 2-
                                month period, and that were employed 
                                during the calendar quarter immediately 
                                succeeding the quarter in which the 
                                assistance under the State program 
                                funded under this part ceased.
                                    ``(II) At the option of the State, 
                                twice the quarterly average number of 
                                families that received a nonrecurring 
                                short-term benefit under the State 
                                program funded under this part during 
                                the applicable period (as defined in 
                                clause (v)), that were employed during 
                                the calendar quarter immediately 
                                succeeding the quarter in which the 
                                nonrecurring short-term benefit was so 
                                received, and that earned at least 
                                $1,000 during such succeeding calendar 
                                quarter.
                                    ``(III) At the option of the State, 
                                twice the quarterly average number of 
                                families that include an adult who is 
                                receiving substantial child care 
                                (including child care funded by 
                                transfers under section 404(d) to the 
                                Child Care and Development Block Grant 
                                Act of 1990) or transportation 
                                assistance (as defined by the 
                                Secretary, in consultation with 
                                directors of State programs funded 
                                under this part, which definition shall 
                                specify for each type of assistance a 
                                threshold which is a dollar value or a 
                                length of time over which the 
                                assistance is received and which takes 
                                into account large one-time transition 
                                payments) during the applicable period 
                                (as defined in clause (v)) and that 
                                were employed during the calendar 
                                quarter in which the substantial child 
                                care or transportation assistance was 
                                so received and earned at least $1,000 
                                during such calendar quarter.
                            ``(iii) Denominator.--For purposes of 
                        clause (i), the amount determined under this 
                        clause is the amount equal to the sum of the 
                        following:
                                    ``(I) The average monthly number of 
                                families that include an adult or minor 
                                child head of household who received 
                                assistance under the State program 
                                funded under this part during the 
                                applicable period (as defined in clause 
                                (v)).
                                    ``(II) If the State elected the 
                                option under clause (ii)(II), twice the 
                                quarterly average number of families 
                                that received a nonrecurring short-term 
                                benefit under the State program funded 
                                under this part during the applicable 
                                period (as defined in clause (v)).
                                    ``(III) If the State elected the 
                                option under clause (ii)(III), twice 
                                the quarterly average number of 
                                families that includes an adult who is 
                                receiving substantial child care 
                                (including child care funded by 
                                transfers under section 404(d) to the 
                                Child Care and Development Block Grant 
                                Act of 1990) or transportation 
                                assistance during the applicable period 
                                (as defined in clause (v)).
                            ``(iv) Special rule for former recipients 
                        with higher earnings.--In calculating the 
                        employment credit for a State for a fiscal 
                        year, in the case of a family that includes an 
                        adult or a minor child head of household that 
                        is to be included in the amount determined 
                        under clause (ii)(I) and that, with respect to 
                        the quarter in which the family's earnings was 
                        examined during the applicable period, earned 
                        at least 33 percent of the average quarterly 
                        earnings in the State (determined on the basis 
                        of State unemployment data), the family shall 
                        be considered to be 1.5 families.
                            ``(v) Definition of applicable period.--For 
                        purposes of this paragraph, the term 
                        `applicable period' means, with respect to a 
                        fiscal year, the most recent 4 quarters for 
                        which data are available to the Secretary 
                        providing information on the work status of--
                                    ``(I) individuals in the quarter 
                                after the individuals ceased receiving 
                                assistance under the State program 
                                funded under this part;
                                    ``(II) at State option, individuals 
                                in the quarter after the individuals 
                                received a short-term, nonrecurring 
                                benefit; and
                                    ``(III) at State option, 
                                individuals in the quarter in which the 
                                individuals received substantial child 
                                care or transportation assistance.
                    ``(C) Notification to state.--Not later than August 
                31 of each fiscal year, the Secretary shall--
                            ``(i) determine, on the basis of the 
                        applicable period, the amount of the employment 
                        credit that will be used in determining the 
                        minimum participation rate for a State under 
                        subsection (a) for the immediately succeeding 
                        fiscal year; and
                            ``(ii) notify each State conducting a State 
                        program funded under this part of the amount of 
                        the employment credit for such program for the 
                        succeeding fiscal year.''.
                    (B) Authority of secretary to use information in 
                national directory of new hires.--Section 453(i) (42 
                U.S.C. 653(i)) is amended by adding at the end the 
                following:
            ``(5) Calculation of employment credit for purposes of 
        determining state work participation rates under tanf.--The 
        Secretary may use the information in the National Directory of 
        New Hires for purposes of calculating State employment credits 
        pursuant to section 407(b)(2).''.
            (2) Elimination of caseload reduction credit.--Effective 
        October 1, 2007, section 407(b) (42 U.S.C. 607(b)) is amended 
        by striking paragraph (3) and redesignating paragraphs (4) and 
        (5) as paragraphs (3) and (4), respectively.
            (3) State option to phase-in replacement of caseload 
        reduction credit with employment credit.--A State may elect to 
        not have the full employment credit under section 407(b)(2) of 
        the Social Security Act (as amended by paragraph (1)(A)) apply 
        to the State program funded under part A of title IV of the 
        Social Security Act until October 1, 2008, and if the State 
        makes the election, then, in determining the participation rate 
        of the State for purposes of section 407 of the Social Security 
        Act for fiscal year 2008, the State shall be credited with \1/
        2\ of the reduction in the rate that would otherwise result 
        from applying section 407(b)(2) of the Social Security Act (as 
        added by paragraph (1)(A)) to the State for fiscal year 2008 
        and \1/2\ of the reduction in the rate that would otherwise 
        result from applying section 407(b)(3) of the Social Security 
        Act (as in effect with respect to fiscal year 2005) to the 
        State for fiscal year 2008.
            (4) Study and report.--
                    (A) In general.--The Secretary of Health and Human 
                Services (in this paragraph referred to as the 
                ``Secretary'') shall conduct a study (in this paragraph 
                referred to as the ``Senator Blanche L. Lincoln 
                Employment Credit Study'') to examine the implications 
                of the design of the employment credit established 
                under section 407(b)(2) of the Social Security Act (as 
                amended by paragraph (1)(A)), and potential 
                improvements to such credit, for the purposes of 
                encouraging States to--
                            (i) provide child care and transportation 
                        to working families so that those families do 
                        not need to receive welfare;
                            (ii) operate diversion programs that are 
                        intended to help families attain employment; 
                        and
                            (iii) target the placement and advancement 
                        of working families in jobs with higher 
                        earnings.
                    (B) Requirements.--The Senator Blanche L. Lincoln 
                Employment Credit Study required under this paragraph 
                shall include an analysis of the implications of--
                            (i) crediting States (either through an 
                        increase in the work participation rate for the 
                        State or in the employment credit) with 
                        families who are employed and not receiving 
                        assistance under the temporary assistance for 
                        needy families program (in this paragraph 
                        referred to as ``TANF'') but are receiving work 
                        supports funded under TANF or with qualified 
                        State expenditures (as defined in section 
                        409(a)(7)(B)(i) of such Act), such as child 
                        care or transportation;
                            (ii) crediting States (either through an 
                        increase in the work participation rate for the 
                        State or in the employment credit) with 
                        families who have been diverted from receiving 
                        assistance under TANF and have an employed 
                        adult;
                            (iii) modifying the earnings thresholds for 
                        determining whether a family has an employed 
                        member and whether the family qualifies for the 
                        good jobs bonus provided under section 
                        407(b)(2)(B)(iv) of such Act;
                            (iv) modifying the data collection 
                        requirements and administrative procedures used 
                        to implement the employment credit;
                            (v) modifying other specifications for 
                        calculating the credit, such as the 
                        mathematical form of the credit;
                            (vi) using the data collected and analyzed 
                        for administering the employment credit for 
                        providing additional information to Congress, 
                        States, and other interested parties for 
                        evaluating the performance of State TANF 
                        programs; and
                            (vii) modifying the cap on the employment 
                        credit, in terms of both maintaining a 
                        meaningful work participation requirement for 
                        families receiving assistance under TANF and 
                        providing an incentive for States to place 
                        recipients in employment and in higher-paying 
                        jobs.
                    (C) Consultation; access to national directory of 
                new hires.--In conducting the Senator Blanche L. 
                Lincoln Employment Credit Study, the Secretary--
                            (i) shall consult with the States; and
                            (ii) may use the information in the 
                        National Directory of New Hires established 
                        under section 453(i) of the Social Security Act 
                        (42 U.S.C. 653(i)).
                    (D) Report.--Not later than September 30, 2009, the 
                Secretary of Health and Human Services shall submit a 
                report to the Committee on Finance of the Senate and 
                the Committee on Ways and Means of the House of 
                Representatives on the Senator Blanche L. Lincoln 
                Employment Credit Study.
    (e) State Options for Participation Requirement Exemptions.--
Section 407(b)(5) (42 U.S.C. 607(b)(5)), as amended by subsection 
(a)(1)(B)(iii), is amended to read as follows:
            ``(5) State options for participation requirement 
        exemptions.--At the option of a State, a State may, on a case-
        by-case basis--
                    ``(A) not include a family in the determination of 
                the monthly participation rate for the State in the 
                first month for which the family receives assistance 
                from the State program funded under this part on the 
                basis of the most recent application for such 
                assistance; or
                    ``(B) not require a family in which the youngest 
                child has not attained 12 months of age to engage in 
                work, and may disregard that family in determining the 
                minimum participation rate under subsection (a) for the 
                State for not more than 12 months.''.
    (f) Determination of Countable Hours Engaged in Work.--Section 
407(c) (42 U.S.C. 607(c)) is amended to read as follows:
    ``(c) Determination of Countable Hours Engaged in Work.--
            ``(1) Single parent or relative whose youngest child has 
        attained age 6.--
                    ``(A) Minimum average number of hours per week.--
                Subject to the succeeding paragraphs of this 
                subsection, a family in which an adult recipient or 
                minor child head of household in the family is 
                participating in work activities described in 
                subsection (d) shall be treated as engaged in work for 
                purposes of determining monthly participation rates 
                under subsection (b)(1)(B)(i) as follows:
                            ``(i) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 20, but 
                        less than 24, hours per week in a month, as 
                        0.675 of a family.
                            ``(ii) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 24, but 
                        less than 30, hours per week in a month, as 
                        0.75 of a family.
                            ``(iii) In the case of a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 30, but 
                        less than 34, hours per week in a month, as 
                        0.875 of a family.
                            ``(iv) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 34, but 
                        less than 35, hours per week in a month, as 1 
                        family.
                            ``(v) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 35, but 
                        less than 38, hours per week in a month, as 
                        1.05 families.
                            ``(vi) In the case of a family in which the 
                        total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 38 hours 
                        per week in a month, as 1.08 families.
                    ``(B) Direct work activities required for an 
                average of 24 hours per week.--Except as provided in 
                subparagraph (C)(i), a State may not count any hours of 
                participation in work activities specified in paragraph 
                (9), (10), or (11) of subsection (d) of any adult 
                recipient or minor child head of household in a family 
                before the total number of hours of participation by 
                any adult recipient or minor child head of household in 
                the family in work activities described in paragraph 
                (1), (2), (3), (4), (5), (6), (7), (8), or (12) of 
                subsection (d) for the family for the month averages at 
                least 24 hours per week.
                    ``(C) State flexibility to count participation in 
                certain activities.--
                            ``(i) Qualified activities for 3-months in 
                        any 24-month period.--
                                    ``(I) 24-hours per week required.--
                                Subject to subclauses (III) and (IV), 
                                for purposes of determining hours under 
                                subparagraph (A), a State may count the 
                                total number of hours any adult 
                                recipient or minor child head of 
                                household in a family engages in 
                                qualified activities described in 
                                subclause (II) as a work activity 
                                described in subsection (d), without 
                                regard to whether the recipient has 
                                satisfied the requirement of 
                                subparagraph (B), but only if--
                                            ``(aa) the total number of 
                                        hours of participation in such 
                                        qualified activities and in any 
                                        work activities described in 
                                        paragraph (1), (2), (3), (4), 
                                        (5), (6), (7), (8), or (12) of 
                                        subsection (d) for the family 
                                        for the month average at least 
                                        24 hours per week (except that 
                                        if such hours average at least 
                                        20, but less than 24, hours per 
                                        week, the State may count that 
                                        family in accordance with 
                                        subparagraph (A)(i)); and
                                            ``(bb) engaging in such 
                                        qualified activities is a 
                                        requirement of the family self-
                                        sufficiency plan.
                                    ``(II) Qualified activities 
                                described.--For purposes of subclause 
                                (I), qualified activities described in 
                                this subclause are any of the 
                                following:
                                            ``(aa) Postsecondary 
                                        education.
                                            ``(bb) Adult literacy 
                                        programs or activities, 
                                        including participation in a 
                                        program designed to increase 
                                        proficiency in the English 
                                        language.
                                            ``(cc) Substance abuse 
                                        counseling or treatment 
                                        (including drug or alcohol 
                                        abuse counseling or treatment).
                                            ``(dd) Programs or 
                                        activities designed to remove 
                                        barriers to work, as defined by 
                                        the State.
                                            ``(ee) Work activities 
                                        authorized under any waiver for 
                                        any State that was continued 
                                        under section 415 before the 
                                        date of enactment of the 
                                        Personal Responsibility and 
                                        Individual Development for 
                                        Everyone Act (without regard to 
                                        whether the waiver expired 
                                        prior to such date of 
                                        enactment).
                                            ``(ff) Financial literacy 
                                        training that is not otherwise 
                                        countable under items (aa) 
                                        through (ee), except that the 
                                        State may not count more than 
                                        an average of 5 hours per week 
                                        of such training.
                                            ``(gg) Programs or 
                                        activities design to develop 
                                        parenting skills.
                                    ``(III) Limitation.--Except as 
                                provided in clause (ii), in any period 
                                of 24 consecutive months, subclause (I) 
                                shall not apply to a family for more 
                                than 3 months (no more than 1 month of 
                                which may be attributable to activities 
                                described in subclause (II)(ff)).
                                    ``(IV) Certain activities.--The 
                                Secretary may allow a State to count 
                                the total hours of participation in 
                                qualified activities described in 
                                subclause (II) for an adult recipient 
                                or minor child head of household 
                                without regard to the minimum 24 hour 
                                average per week of participation 
                                requirement under subclause (I) if the 
                                State has demonstrated conclusively 
                                that such activities are part of a 
                                substantial and supervised program 
                                whose effectiveness in moving families 
                                to self-sufficiency is superior to any 
                                alternative activities and the 
                                effectiveness of the program in moving 
                                families to self-sufficiency would be 
                                substantially impaired if participating 
                                individuals participated in additional, 
                                concurrent qualified activities that 
                                enabled the individuals to achieve an 
                                average of at least 24 hours per week 
                                of participation.
                            ``(ii) Additional 3-month period permitted 
                        for certain activities.--
                                    ``(I) Self-sufficiency plan 
                                requirement combined with minimum 
                                number of hours.--A State may extend 
                                the 3-month period under clause (i) for 
                                an additional 3 months in the same 
                                period of 24 consecutive months in the 
                                case of an adult recipient or minor 
                                child head of household who is 
                                receiving qualified rehabilitative 
                                services described in subclause (II) 
                                if--
                                            ``(aa) the total number of 
                                        hours that the adult recipient 
                                        or minor child head of 
                                        household engages in such 
                                        qualified rehabilitative 
                                        services and, subject to 
                                        subclause (III), a work 
                                        activity described in paragraph 
                                        (1), (2), (3), (4), (5), (6), 
                                        (7), (8), or (12) of subsection 
                                        (d) for the month average at 
                                        least 24 hours per week; and
                                            ``(bb) engaging in such 
                                        qualified rehabilitative 
                                        services is a requirement of 
                                        the family self-sufficiency 
                                        plan.
                                    ``(II) Qualified rehabilitative 
                                services described.--For purposes of 
                                subclause (I), qualified rehabilitative 
                                services described in this subclause 
                                are any of the following:
                                            ``(aa) Adult literacy 
                                        programs or activities, 
                                        including participation in a 
                                        program designed to increase 
                                        proficiency in the English 
                                        language.
                                            ``(bb) In the case of an 
                                        adult recipient or minor child 
                                        head of household who has been 
                                        certified by a qualified 
                                        medical, mental health, or 
                                        social services professional 
                                        (as defined by the State) as 
                                        having a physical or mental 
                                        disability, substance abuse 
                                        problem (including a drug or 
                                        alcohol abuse problem), or 
                                        other problem that requires a 
                                        rehabilitative service, 
                                        substance abuse treatment 
                                        (including drug or alcohol 
                                        abuse treatment), or mental 
                                        health treatment, the service 
                                        or treatment determined 
                                        necessary by a professional.
                            ``(iii) Nonapplication of limitations on 
                        job search and vocational educational 
                        training.--An adult recipient or minor child 
                        head of household who is participating in 
                        qualified activities described in subclause 
                        (II) of clause (i) during a 3-month period 
                        under that clause, or receiving qualified 
                        rehabilitative services described in subclause 
                        (II) of clause (ii) during an additional period 
                        under that clause, may engage in a work 
                        activity described in paragraph (6) or (8) of 
                        subsection (d) for purposes of satisfying the 
                        minimum 24 hour average per week of 
                        participation requirement under clause 
                        (i)(I)(aa) or clause (ii)(I)(aa), respectively, 
                        without regard to any limit that otherwise 
                        applies to the activity (including the 30 
                        percent limitation on participation in 
                        vocational educational training under paragraph 
                        (6)(C)).
                            ``(iv) Hours in excess of an average of 24 
                        work activity hours per week.--If the total 
                        number of hours that any adult recipient or 
                        minor child head of household in a family has 
                        participated in a work activity described in 
                        paragraph (1), (2), (3), (4), (5), (6), (7), 
                        (8), or (12) of subsection (d) averages at 
                        least 24 hours per week in a month, a State, 
                        for purposes of determining hours under 
                        subparagraph (A), may count any additional 
                        hours an adult recipient or minor child head of 
                        household in the family engages in--
                                    ``(I) any work activity described 
                                in subsection (d), without regard to 
                                any limit that otherwise applies to the 
                                activity (including the 6-week 
                                limitation on job search and job 
                                readiness assistance under paragraph 
                                (6)(B) and the 30 percent limitation on 
                                participation in vocational educational 
                                training under paragraph (6)(C)); and
                                    ``(II) any qualified activity 
                                described in clause (i)(II), as a work 
                                activity described in subsection (d).
            ``(2) Single parent or relative with a child under age 6.--
                    ``(A) In general.--A family in which an adult 
                recipient or minor child head of household in the 
                family is the only parent or caretaker relative in the 
                family of a child who has not attained 6 years of age 
                and who is participating in work activities described 
                in subsection (d) shall be treated as engaged in work 
                for purposes of determining monthly participation rates 
                under subsection (b)(1)(B)(i) as follows:
                            ``(i) In the case of such a family in which 
                        the total number of hours in which the adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 20, but 
                        less than 24, hours per week in a month, as 
                        0.675 of a family.
                            ``(ii) In the case of such a family in 
                        which the total number of hours in which the 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        24, but less than 35, hours per week in a 
                        month, as 1 family.
                            ``(iii) In the case of such a family in 
                        which the total number of hours in which the 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        35, but less than 38, hours per week in a 
                        month, as 1.05 families.
                            ``(iv) In the case of such a family in 
                        which the total number of hours in which the 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        38 hours per week in a month, as 1.08 families.
                    ``(B) Application of rules regarding direct work 
                activities and state flexibility to count participation 
                in certain activities.--Subparagraphs (B) and (C) of 
                paragraph (1) apply to a family described in 
                subparagraph (A) in the same manner as such 
                subparagraphs apply to a family described in paragraph 
                (1)(A).
            ``(3) 2-parent families.--
                    ``(A) In general.--Subject to paragraph (6)(A), a 
                2-parent family in which an adult recipient or minor 
                child head of household in the family is participating 
                in work activities described in subsection (d) shall be 
                treated as engaged in work for purposes of determining 
                monthly participation rates under subsection 
                (b)(1)(B)(i) as follows:
                            ``(i) In the case of such a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 26, but 
                        less than 30, hours per week in a month, as 
                        0.675 of a family.
                            ``(ii) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        30, but less than 35, hours per week in a 
                        month, as 0.75 of a family.
                            ``(iii) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        35, but less than 39, hours per week in a 
                        month, as 0.875 of a family.
                            ``(iv) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        39, but less than 40, hours per week in a 
                        month, as 1 family.
                            ``(v) In the case of such a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 40, but 
                        less than 43, hours per week in a month, as 
                        1.05 families.
                            ``(vi) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        43 hours per week in a month, as 1.08 families.
                    ``(B) Application of rules regarding direct work 
                activities and state flexibility to count participation 
                in certain activities.--Subparagraphs (B) and (C) of 
                paragraph (1) apply to a 2-parent family described in 
                subparagraph (A) in the same manner as such 
                subparagraphs apply to a family described in paragraph 
                (1)(A), except that subparagraph (B) of paragraph (1) 
                shall be applied to such a 2-parent family by 
                substituting `34' for `24' each place it appears.
            ``(4) 2-parent families that receive federally funded child 
        care.--
                    ``(A) In general.--Subject to paragraph (6)(A), if 
                a 2-parent family receives federally funded child care 
                assistance, an adult recipient or minor child head of 
                household in the family participating in work 
                activities described in subsection (d) shall be treated 
                as engaged in work for purposes of determining monthly 
                participation rates under subsection (b)(1)(B)(i) as 
                follows:
                            ``(i) In the case of such a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 40, but 
                        less than 45, hours per week in a month, as 
                        0.675 of a family.
                            ``(ii) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        45, but less than 51, hours per week in a 
                        month, as 0.75 of a family.
                            ``(iii) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        51, but less than 55, hours per week in a 
                        month, as 0.875 of a family.
                            ``(iv) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        55, but less than 56, hours per week in a 
                        month, as 1 family.
                            ``(v) In the case of such a family in which 
                        the total number of hours in which any adult 
                        recipient or minor child head of household in 
                        the family is participating in such work 
                        activities for an average of at least 56, but 
                        less than 59, hours per week in a month, as 
                        1.05 families.
                            ``(vi) In the case of such a family in 
                        which the total number of hours in which any 
                        adult recipient or minor child head of 
                        household in the family is participating in 
                        such work activities for an average of at least 
                        59 hours per week in a month, as 1.08 families.
                    ``(B) Application of rules regarding direct work 
                activities and state flexibility to count participation 
                in certain activities.--Subparagraphs (B) and (C) of 
                paragraph (1) apply to a 2-parent family described in 
                subparagraph (A) in the same manner as such 
                subparagraphs apply to a family described in paragraph 
                (1)(A), except that subparagraph (B) of paragraph (1) 
                shall be applied to such a 2-parent family by 
                substituting `50' for `24' each place it appears.
            ``(5) Calculation of hours per week.--
                    ``(A) In general.--The number of hours per week 
                that a family is engaged in work is the quotient of--
                            ``(i) the total number of hours per month 
                        that the family is engaged in work; divided by
                            ``(ii) 4.
                    ``(B) Determination of total number of hours per 
                month.--The total number of hours per month in which a 
                family is engaged in work is equal to the sum of the 
                number of hours of participation in work activities 
                described in subsection (d) for all adults and minor 
                child head of households in the family for the month.
            ``(6) Special rules.--
                    ``(A) Family with a disabled parent not treated as 
                a 2-parent family.--A family that includes a disabled 
                parent shall not be considered a 2-parent family for 
                purposes of paragraph (3) or (4).
                    ``(B) Number of weeks for which job search and job 
                readiness assistance counts as work.--An individual 
                shall not be considered to be engaged in work for a 
                month by virtue of participation in an activity 
                described in subsection (d)(6) of a State program 
                funded under this part, after the individual has 
                participated in such an activity for 6 weeks per fiscal 
                year (or, if the unemployment rate of the State is at 
                least 50 percent greater than the unemployment rate of 
                the United States, or the State meets the criteria of 
                subclause (I), (II), or (III) of section 
                403(b)(3)(A)(iii) or satisfies the applicable duration 
                requirement of section 403(b)(3)(B), 12 weeks per 
                fiscal year).
                    ``(C) Single teen head of household or married teen 
                who maintains satisfactory school attendance deemed to 
                count as 1 family.--For purposes of determining hours 
                under the preceding paragraphs of this subsection, with 
                respect to a month, a State shall count a recipient who 
                is married or a head of household and who has not 
                attained 20 years of age as 1 family if the recipient--
                            ``(i) maintains satisfactory attendance at 
                        a secondary school or the equivalent during the 
                        month; or
                            ``(ii) participates in education directly 
                        related to employment for an average of at 
                        least 20 hours per week during the month.
                    ``(D) Limitation on number of persons who may be 
                treated as engaged in work by reason of participation 
                in educational activities.--Except as provided in 
                paragraph (1)(C)(ii)(I), for purposes of subsection 
                (b)(1)(B)(i), not more than 30 percent of the number of 
                individuals in all families in a State who are treated 
                as engaged in work for a month may consist of 
                individuals who are--
                            ``(i) determined (without regard to 
                        individuals participating in a program 
                        established under section 404(l)) to be engaged 
                        in work for the month by reason of 
                        participation in vocational educational 
                        training (but only with respect to such 
                        training that is used to meet the requirements 
                        of paragraph (1)(B)); or
                            ``(ii) deemed to be engaged in work for the 
                        month by reason of subparagraph (C) of this 
                        paragraph.
                    ``(E) State option to deem parent caring for a 
                child or adult dependent for care with a physical or 
                mental impairment to be meeting all or part of a 
                family's work participation requirements for a month.--
                            ``(i) In general.--A State may count the 
                        number of hours per week that an adult 
                        recipient or minor child head of household who 
                        is the parent or caretaker relative for a child 
                        or adult dependent for care with a physical or 
                        mental impairment engages in providing 
                        substantial ongoing care for such child or 
                        adult dependent for care if the State 
                        determines that--
                                    ``(I) the child or adult dependent 
                                for care has been verified through a 
                                medically acceptable clinical or 
                                diagnostic technique as having a 
                                significant physical or mental 
                                impairment or combination of 
                                impairments that require substantial 
                                ongoing care;
                                    ``(II) the adult recipient or minor 
                                child head of household providing such 
                                care is the most appropriate means, as 
                                determined by the State, by which such 
                                care can be provided to the child or 
                                adult dependent for care;
                                    ``(III) for each month in which 
                                this subparagraph applies to the adult 
                                recipient or minor child head of 
                                household, the adult recipient or minor 
                                child head of household is in 
                                compliance with the requirements of the 
                                family's self-sufficiency plan; and
                                    ``(IV) the recipient is unable to 
                                participate fully in work activities, 
                                after consideration of whether there 
                                are supports accessible and available 
                                to the family for the care of the child 
                                or adult dependent for care.
                            ``(ii) Total number of hours limited to 
                        being counted as 1 family.--In no event may a 
                        family that includes a recipient to which 
                        clause (i) applies be counted as more than 1 
                        family for purposes of determining monthly 
                        participation rates under subsection 
                        (b)(1)(B)(i).
                            ``(iii) State requirements.--In the case of 
                        a recipient to which clause (i) applies, the 
                        State shall--
                                    ``(I) conduct regular, periodic 
                                evaluations of the family of the adult 
                                recipient or minor child head of 
                                household; and
                                    ``(II) include as part of the 
                                family's self-sufficiency plan, regular 
                                updates on what special needs of the 
                                child or the adult dependent for care, 
                                including substantial ongoing care, 
                                could be accommodated either by 
                                individuals other than the adult 
                                recipient or minor child head of 
                                household outside of the home.
                            ``(iv) Rule of construction.--Nothing in 
                        this subparagraph shall be construed as 
                        prohibiting a State from including in a 
                        recipient's self-sufficiency plan a requirement 
                        to engage in work activities described in 
                        subsection (d).
                    ``(F) Optional modification of work requirements 
                for recipients residing in areas of indian country or 
                an alaskan native village with high joblessness.--If a 
                State has included in the State plan a description of 
                the State's policies in areas of Indian country or an 
                Alaskan Native village described in section 
                408(a)(7)(D), the State may define the activities that 
                the State will treat as being work activities described 
                in subsection (d) that a recipient who resides in such 
                an area and who is participating in such activities in 
                accordance with a self-sufficiency plan under section 
                408(b) may engage in for purposes of satisfying work 
                requirements under the State program and for purposes 
                of determining monthly participation rates under 
                subsection (b)(1)(B)(i).''.
    (g) Work Activities.--
            (1) In general.--Section 407(d) (42 U.S.C. 607(d)) is 
        amended--
                    (A) in paragraph (11), by striking ``and'' at the 
                end:
                    (B) in paragraph (12), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(13) marriage education, marriage skills training, 
        conflict resolution counseling in the context of marriage, and 
        participation in programs that promote marriage.''.
            (2) Conforming amendment.--Section 407(c)(1)(B) (42 U.S.C. 
        607(c)(1)(B)), as amended by subsection (f), is amended by 
        striking ``or (11)'' and inserting ``(11), or (13)''.

SEC. 110. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUFFICIENCY PLAN 
              REQUIREMENTS; OTHER PROHIBITIONS AND REQUIREMENTS.

    (a) Universal Engagement and Family Self-Sufficiency Plan 
Requirements.--
            (1) Modification of state plan requirements.--
                    (A) In general.--Section 402(a)(1)(A) (42 U.S.C. 
                602(a)(1)(A)) is amended by striking clauses (ii) and 
                (iii) and inserting the following:
                            ``(ii) Require an adult or minor child head 
                        of household receiving assistance under the 
                        program to engage in work or alternative self-
                        sufficiency activities (as defined by the 
                        State), consistent with section 407(e)(2).
                            ``(iii)(I) Require families receiving 
                        assistance under the program that--
                                    ``(I) include an adult or minor 
                                child head of household to engage in 
                                activities in accordance with family 
                                self-sufficiency plans developed 
                                pursuant to section 408(b); and
                                    ``(II) at State option, only 
                                consist of a child or children, to 
                                engage in activities in accordance with 
                                such plans that specify the supportive 
                                services the State intends to provide 
                                for such families and provide for 
                                regular interaction with the families 
                                but do not require participation in a 
                                work activity described in section 
                                407(d) (other than paragraph (11) of 
                                such section).''.
                    (B) Rule of construction.--Nothing in the 
                amendments made by subparagraph (A) shall be construed 
                as requiring a family receiving assistance under a 
                State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) that only 
                consists of a child or children, or a caretaker for 
                such a family, to engage in work as a condition of 
                receiving such assistance.
            (2) Establishment of family self-sufficiency plans.--
                    (A) In general.--Section 408(b) (42 U.S.C. 608(b)) 
                is amended to read as follows:
    ``(b) Family Self-Sufficiency Plans.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 shall--
                    ``(A) make an initial screening and assessment, in 
                the manner deemed appropriate by the State, of the 
                skills, prior work experience, education obtained, work 
                readiness, barriers to work, and employability of each 
                adult or minor child head of household recipient of 
                assistance in the family who--
                            ``(i) has attained age 18; or
                            ``(ii) has not completed high school or 
                        obtained a certificate of high school 
                        equivalency and is not attending secondary 
                        school;
                    ``(B) assess, in the manner deemed appropriate by 
                the State, the work support and other assistance and 
                family support services for which each family receiving 
                assistance is eligible; and
                    ``(C) assess, in the manner deemed appropriate by 
                the State, the well-being of the children in the 
                family, and, where appropriate, activities or resources 
                to improve the well-being of the children.
            ``(2) Contents of plans.--The State shall, in the manner 
        deemed appropriate by the State establish for each family that 
        includes an individual described in paragraph (1)(A) (and, if 
        the State elects, each family that only consists of a child or 
        children), in consultation as the State deems appropriate with 
        the individual, a self-sufficiency plan that--
                    ``(A) specifies activities described in the State 
                plan submitted pursuant to section 402, including work 
                activities described in paragraph (1), (2), (3), (4), 
                (5), (6), (7), (8), or (12) of section 407(d), as 
                appropriate;
                    ``(B) is designed to assist the family in achieving 
                their maximum degree of self-sufficiency;
                    ``(C) provides for the ongoing participation of the 
                individual in the activities specified in the plan;
                    ``(D) requires, at a minimum, each such individual 
                to participate in activities in accordance with the 
                self-sufficiency plan;
                    ``(E) sets forth the appropriate supportive 
                services the State intends to provide for the family;
                    ``(F) establishes for the family a plan that 
                addresses the issue of child well-being and, when 
                appropriate, adolescent well-being, and that may 
                include services such as domestic violence counseling, 
                mental health referrals, and parenting courses; and
                    ``(G) includes a section designed to assist the 
                family by informing the family, in such manner as 
                deemed appropriate by the State, of the work support 
                and other assistance for which the family may be 
                eligible including (but not limited to)--
                            ``(i) the food stamp program established 
                        under the Food Stamp Act of 1977 (7 U.S.C. 2011 
                        et seq.);
                            ``(ii) the medicaid program funded under 
                        title XIX;
                            ``(iii) the State children's health 
                        insurance program funded under title XXI;
                            ``(iv) Federal or State funded child care, 
                        including child care funded under the Child 
                        Care Development Block Grant Act of 1990 (42 
                        U.S.C. 9858 et seq.) and funds made available 
                        under this title or title XX;
                            ``(v) the earned income tax credit under 
                        section 32 of the Internal Revenue Code of 
                        1986;
                            ``(vi) the low-income home energy 
                        assistance program established under the Low-
                        Income Home Energy Assistance Act of 1981 (42 
                        U.S.C. 8621 et seq.);
                            ``(vii) the special supplemental nutrition 
                        program for women, infants, and children 
                        established under section 17 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786);
                            ``(viii) programs conducted under the 
                        Workforce Investment Act of 1998 (29 U.S.C. 
                        2801 et seq.); and
                            ``(ix) low-income housing assistance 
                        programs.
            ``(3) State option to receive work participation rate 
        credit for an individual whose plan specifies that they have a 
        continuing need for rehabilitative services in order to engage 
        in direct work activities.--
                    ``(A) In general.--A State may elect, on a case-by-
                case basis, to include direct work activities by an 
                individual described in subparagraph (B) that are 
                combined with rehabilitative services in the 
                determination of monthly participation rates under 
                section 407(b)(1)(B)(i).
                    ``(B) Individual described.--For purposes of this 
                paragraph, an individual described in this subparagraph 
                is an individual who--
                            ``(i) is an adult or minor child head of 
                        household recipient of assistance;
                            ``(ii) was treated as being engaged in work 
                        during each of the 3-month periods applicable 
                        under clauses (i) and (ii) of section 
                        407(c)(1)(C); and
                            ``(iii) the State determines--
                                    ``(I) has been verified through a 
                                medically acceptable clinical or 
                                diagnostic technique as having a 
                                disability that impedes the 
                                individual's ability to function in a 
                                work setting; and
                                    ``(II) continues to need 
                                rehabilitative services in order to 
                                engage in direct work activities.
                    ``(C) Requirements.--A State shall not include 
                activities of an individual described in subparagraph 
                (B) in the determination of monthly participation rates 
                under section 407(b)(1)(B)(i) unless the following 
                requirements are met:
                            ``(i) Development and maintenance of 
                        collaborative relationships.--
                                    ``(I) In general.--The State agency 
                                responsible for administering the State 
                                program funded under this part has or 
                                is developing collaborative and 
                                referral relationships with other 
                                governmental and private agencies with 
                                expertise in disability determinations, 
                                or the development of appropriate 
                                services plans for individuals with 
                                disabilities, to address the needs of 
                                adult or minor child head of household 
                                recipients of assistance who have a 
                                disability and require such services 
                                plans in order to engage in direct work 
                                activities.
                                    ``(II) Inclusion of relationships 
                                with agencies funded under this part.--
                                The governmental and private agencies 
                                referred to in subclause (I) include 
                                agencies that may be receiving funds 
                                under this part, such as State and 
                                local mental health agencies, substance 
                                abuse treatment providers (including 
                                drug or alcohol abuse treatment 
                                providers), disability service 
                                agencies, and providers of vocational 
                                rehabilitation services.
                            ``(ii) Self-sufficiency plan specifies the 
                        individual's continuing need for services and 
                        coordination process with providers.--The plan 
                        established under paragraph (2) for an 
                        individual described in subparagraph (B)--
                                    ``(I) specifies the individual's 
                                continuing need for rehabilitative 
                                services in order to engage in direct 
                                work activities; and
                                    ``(II) describes how the State will 
                                coordinate with each provider of such 
                                services.
                            ``(iii) State plan description and 
                        assurances.--The State includes in an addendum 
                        to the State plan submitted under section 402 
                        the following:
                                    ``(I) Description of process for 
                                developing and maintaining 
                                collaborative relationships.--A 
                                description of the process the State 
                                shall use to develop and maintain the 
                                collaborative and referral 
                                relationships with other governmental 
                                and private agencies required under 
                                clause (i).
                                    ``(II) Assurance of regular contact 
                                with service providers, reevaluation, 
                                and modification of plan.--An assurance 
                                that the State shall--
                                            ``(aa) ensure that each 
                                        provider of rehabilitative 
                                        services for an individual 
                                        described in subparagraph (B) 
                                        is in regular contact with the 
                                        individual and that the 
                                        provider will inform the State 
                                        if the individual is no longer 
                                        participating in the 
                                        rehabilitation services;
                                            ``(bb) reevaluate the 
                                        individual's continuing need 
                                        for such services not less than 
                                        once each fiscal year quarter; 
                                        and
                                            ``(cc) make appropriate 
                                        modifications to the 
                                        individual's self-sufficiency 
                                        plan on the basis of such 
                                        information and reevaluations.
                            ``(iv) No determination that the State has 
                        failed to comply with the requirement to 
                        develop and maintain collaborative 
                        relationships.--The Secretary has not made a 
                        determination that the State has failed to 
                        comply with the requirement to develop and 
                        maintain the collaborative and referral 
                        relationships with other governmental and 
                        private agencies required under clause (i).
                    ``(D) Credit for hours of participation in direct 
                work activities and rehabilitation services.--
                            ``(i) In general.--A State may include in 
                        the determination of monthly participation 
                        rates under section 407(b)(1)(B)(i) the sum of 
                        the total number of hours that an individual 
                        described in subparagraph (B) participates for 
                        a month in--
                                    ``(I) direct work activities; and
                                    ``(II) rehabilitative services (but 
                                only up to the number of hours of such 
                                services that do not exceed the total 
                                number of hours that the individual 
                                participated in direct work activities 
                                for that month).
                            ``(ii) Application of rules for 
                        determination of countable hours of work.--The 
                        sum of hours of participation by such an 
                        individual shall be treated under section 
                        407(c) in the same manner as a family 
                        participating in work activities described in 
                        section 407(d) is treated as engaged in work 
                        under section 407(c).
                    ``(E) Definitions.--In this paragraph:
                            ``(i) Disability.--The term `disability' 
                        means a physical or mental impairment, 
                        including substance abuse and drug or alcohol 
                        abuse, that--
                                    ``(I) constitutes or results in a 
                                substantial impediment to employment; 
                                or
                                    ``(II) substantially limits 1 or 
                                more major life activities.
                            ``(ii) Direct work activity.--The term 
                        `direct work activity' means an activity 
                        described in paragraph (1), (2), (3), (4), (5), 
                        (6), (7), (8), or (12) of section 407(d).
            ``(4) Review.--
                    ``(A) Regular review.--A State to which a grant is 
                made under section 403 shall--
                            ``(i) monitor the participation of each 
                        adult recipient or minor child head of 
                        household in the activities specified in the 
                        self-sufficiency plan, and regularly review the 
                        progress of the family toward self-sufficiency; 
                        and
                            ``(ii) upon such a review, revise the plan 
                        and activities required under the plan as the 
                        State deems appropriate in consultation with 
                        the family.
                    ``(B) Prior to the imposition of a sanction.--Prior 
                to imposing a sanction against an adult recipient, 
                minor child head of household, or a family for failure 
                to comply with a requirement of the self-sufficiency 
                plan or the State program funded under this part, the 
                State shall, in the manner determined appropriate by 
                the State--
                            ``(i) review the self-sufficiency plan; and
                            ``(ii) make a good faith effort (as defined 
                        by the State) to consult with the family.
            ``(5) State discretion.--Subject to paragraph (3), a State 
        shall have sole discretion, consistent with section 407, to 
        define and design activities for families for purposes of this 
        subsection, to develop methods for monitoring and reviewing 
        progress pursuant to this subsection, and to make modifications 
        to the plan as the State deems appropriate to assist the 
        individual in increasing their degree of self-sufficiency.
            ``(6) Application to partially sanctioned families.--The 
        requirements of this subsection shall apply in the case of a 
        family that includes an adult or minor child head of household 
        recipient of assistance who is subject to a partial sanction.
            ``(7) Timing.--The State shall initiate screening and 
        assessment and the establishment of a family self-sufficiency 
        plan in accordance with the requirements of this subsection--
                    ``(A) in the case of a family that, as of the date 
                of enactment of the Personal Responsibility and 
                Individual Development for Everyone Act, is not 
                receiving assistance from the State program funded 
                under this part, not later than the later of--
                            ``(i) 1 year after such date of enactment; 
                        or
                            ``(ii) 60 days after the family first 
                        receives assistance on the basis of the most 
                        recent application for assistance; and
                    ``(B) in the case of a family that, as of such 
                date, is receiving assistance under the State program 
                funded under this part, not later than 1 year after 
                such date of enactment.
            ``(8) Rule of interpretation.--Nothing in this subsection 
        shall preclude a State from--
                    ``(A) requiring participation in work and any other 
                activities the State deems appropriate for helping 
                families achieve self-sufficiency and improving child 
                well-being; or
                    ``(B) using job search or other appropriate job 
                readiness or work activities to assess the 
                employability of individuals and to determine 
                appropriate future engagement activities.''.
                    (B) Penalty for failure to comply with family self-
                sufficiency plan requirements.--
                            (i) In general.--Section 409(a)(3) (42 
                        U.S.C. 609(a)(3)) is amended--
                                    (I) in the paragraph heading, by 
                                inserting ``or comply with family self-
                                sufficiency plan requirements'' after 
                                ``rates'';
                                    (II) in subparagraph (A), by 
                                inserting ``or 408(b)'' after 
                                ``407(a)''; and
                                    (III) by striking subparagraph (C) 
                                and inserting the following:
                    ``(C) Penalty based on severity of failure.--
                            ``(i) Failure to satisfy minimum 
                        participation rate.--If, with respect to fiscal 
                        year 2007 or any fiscal year thereafter, the 
                        Secretary finds that a State has failed or is 
                        failing to substantially comply with the 
                        requirements of section 407(a) for that fiscal 
                        year, the Secretary shall impose reductions 
                        under subparagraph (A) with respect to the 
                        immediately succeeding fiscal year based on the 
                        degree of substantial noncompliance. In 
                        assessing the degree of substantial 
                        noncompliance under section 407(a) for a fiscal 
                        year, the Secretary shall take into account 
                        factors such as--
                                    ``(I) the degree to which the State 
                                missed the minimum participation rate 
                                for that fiscal year;
                                    ``(II) the change in the number of 
                                individuals who are engaged in work in 
                                the State since the prior fiscal year; 
                                and
                                    ``(III) the number of consecutive 
                                fiscal years in which the State failed 
                                to reach the minimum participation 
                                rate.
                            ``(ii) Failure to comply with self-
                        sufficiency plan requirements.--If, with 
                        respect to fiscal year 2007 or any fiscal year 
                        thereafter, the Secretary finds that a State 
                        has failed or is failing to substantially 
                        comply with the requirements of section 408(b) 
                        for that fiscal year, the Secretary shall 
                        impose reductions under subparagraph (A) with 
                        respect to the immediately succeeding fiscal 
                        year based on the degree of substantial 
                        noncompliance. In assessing the degree of 
                        substantial noncompliance under section 408(b), 
                        the Secretary shall take into account factors 
                        such as--
                                    ``(I) the number or percentage of 
                                families for which a self-sufficiency 
                                plan is not established in a timely 
                                fashion for that fiscal year;
                                    ``(II) the duration of the delays 
                                in establishing a self-sufficiency plan 
                                during that fiscal year;
                                    ``(III) whether the failures are 
                                isolated and nonrecurring; and
                                    ``(IV) the existence of systems 
                                designed to ensure that self-
                                sufficiency plans are established for 
                                all families in a timely fashion and 
                                that families' progress under such 
                                plans is monitored.
                            ``(iii) Authority to reduce the penalty.--
                        The Secretary may reduce the penalty that would 
                        otherwise apply under this paragraph if the 
                        substantial noncompliance is due to 
                        circumstances that caused the State to meet the 
                        criteria of subclause (I), (II), or (III) of 
                        section 403(b)(3)(A)(iii) or to satisfy the 
                        applicable duration requirement of section 
                        403(b)(3)(B) during the fiscal year, or if the 
                        noncompliance is due to extraordinary 
                        circumstances such as a natural disaster or 
                        regional recession. The Secretary shall provide 
                        a written report to Congress to justify any 
                        waiver or penalty reduction due to such 
                        extraordinary circumstances.''.
                            (ii) Effective date.--The amendments made 
                        by this subparagraph take effect on October 1, 
                        2006.
            (3) GAO evaluation and report.--Not later than September 
        30, 2007, the Comptroller General of the United States shall 
        submit a report to the Committee on Finance of the Senate and 
        the Committee on Ways and Means of the House of Representatives 
        evaluating the implementation of the universal engagement 
        provisions under the temporary assistance to needy families 
        program under part A of title IV of the Social Security Act (42 
        U.S.C. 601 et seq.), as added by the amendments made by this 
        subsection.
            (4) Rules of Construction.--Nothing in this subsection or 
        the amendments made by this subsection shall be construed--
                    (A) as establishing a private right or cause of 
                action against a State for failure to comply with the 
                requirements imposed under this subsection or the 
                amendments made by this subsection; or
                    (B) as limiting claims that may be available under 
                other Federal or State laws.
    (b) Transitional Compliance for Teen Parents.--
            (1) In general.--Section 408(a)(5) (42 U.S.C. 608(a)(5)) is 
        amended--
                    (A) in subparagraph (A)(i), by striking 
                ``subparagraph (B)'' and inserting ``subparagraphs (B) 
                and (C)''; and
                    (B) by adding at the end the following:
                    ``(C) Authority to provide temporary assistance.--A 
                State may use any part of a grant made under section 
                403 to provide assistance to an individual described in 
                clause (ii) of subparagraph (A) who would otherwise be 
                prohibited from receiving such assistance under clause 
                (i) of that subparagraph, subparagraph (B), or section 
                408(a)(4) for not more than a single 60-day period in 
                order to assist the individual in meeting the 
                requirement of clause (i) of subparagraph (A), 
                subparagraph (B), or section 408(a)(4) for receipt of 
                such assistance.''.
            (2) Inclusion of transitional living youth projects as a 
        form of adult-supervised setting.--Clause (i) of section 
        408(a)(5)(A) (42 U.S.C. 608(a)(5)(A)), as amended by paragraph 
        (1), is amended--
                    (A) by striking ``do not reside in a place of'' and 
                inserting ``do not reside in a--
                                    ``(I) place of'';
                    (B) by striking the period and inserting ``; or''; 
                and
                    (C) by adding at the end the following:
                                    ``(II) transitional living youth 
                                project funded under a grant made under 
                                section 321 of the Runaway and Homeless 
                                Youth Act (42 U.S.C. 5714-1).''.
    (c) Areas of Indian Country of High Joblessness.--Section 
408(a)(7)(D) (42 U.S.C. 608(a)(7)(D)) is amended--
            (1) in the subparagraph heading, by striking ``country'' 
        and all that follows through ``unemployment'' and inserting 
        ``country with high joblessness or in an alaskan native village 
        with 50 percent unemployment'';
            (2) by redesignating clause (ii) as clause (v); and
            (3) by striking clause (i) and inserting the following:
                            ``(i) In general.--Subject to clauses (ii), 
                        (iii), and (iv), in determining the number of 
                        months for which an adult has received 
                        assistance under a State or tribal program 
                        funded under this part, the State or Indian 
                        tribe shall disregard any month during which 
                        the adult lived in Indian country if the most 
                        reliable data available (or such other data 
                        submitted by a State or tribal program as the 
                        Secretary may approve) with respect to the 
                        month (or a period including the month) 
                        indicate that at least 40 percent of the adult 
                        recipients, who were living in Indian country 
                        were jobless.
                            ``(ii) Economic downturn.--If--
                                    ``(I) in the case of a State 
                                program funded under this part--
                                            ``(aa) the unemployment 
                                        rate of the State is at least 
                                        50 percent greater than the 
                                        unemployment rate of the United 
                                        States; and
                                            ``(bb) the State meets the 
                                        criteria of subclause (I), 
                                        (II), or (III) of section 
                                        403(b)(3)(A)(iii) and satisfies 
                                        the applicable duration 
                                        requirement of section 
                                        403(b)(3)(B): or
                                    ``(II) in the case of a tribal 
                                program funded under this part, the 
                                Indian tribe satisfies the criteria 
                                specified under section 
                                403(b)(1)(D)(ii),
                        clause (i) shall be applied by substituting `35 
                        percent' for `40 percent'.
                            ``(iii) Requirement.--A month may only be 
                        disregarded under clause (i) with respect to an 
                        adult recipient described in that clause if the 
                        adult is in compliance with program 
                        requirements.
                            ``(iv) Continuation of 50 percent 
                        unemployment requirement for an alaskan native 
                        village.--In the case of an Alaskan Native 
                        village, this subparagraph shall be applied 
                        without regard to the amendments made by the 
                        Personal Responsibility and Individual 
                        Development for Everyone Act.''.

SEC. 111. PENALTIES.

    (a) Maintenance of Certain Level of Historic Effort.--Section 
409(a)(7) (42 U.S.C. 609(a)(7)) is amended--
            (1) in subparagraph (A), by striking ``or 2006'' and 
        inserting ``2006, 2007, 2008, 2009, 2010, or 2011''; and
            (2) in subparagraph (B)(ii)--
                    (A) by inserting ``preceding'' before ``fiscal 
                year''; and
                    (B) by striking ``for fiscal years 1997 through 
                2005,''.
    (b) Implementing Work Program Improvement Through Corrective Action 
Plan.--Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
                    ``(A) In general.--The Secretary''; and
            (2) by adding at the end the following:
                    ``(B) No penalty if work program improvement.--The 
                Secretary shall not impose any penalty under subsection 
                (a)(3) for a State's failure to comply with section 
                407(a) for a fiscal year if the Secretary determines 
                that the participation rate determined for the State 
                under section 407(b)(1) for that fiscal year increased 
                by at least 5 percentage points above the participation 
                rate for the State for the preceding fiscal year and a 
                State corrective compliance plan accepted by the 
                Secretary specifies how the State will correct the 
                violation.''.

SEC. 112. DATA COLLECTION AND REPORTING.

    (a) Contents of Report.--Section 411(a)(1)(A) (42 U.S.C. 
611(a)(1)(A)) is amended--
            (1) in the matter preceding clause (i), by inserting ``and 
        on families receiving assistance under State programs funded 
        with other qualified State expenditures (as defined in section 
        409(a)(7)(B)(i))'' before the colon;
            (2) in clause (vii), by inserting ``and minor parent'' 
        after ``of each adult'';
            (3) in clause (viii), by striking ``and educational 
        level'';
            (4) in clause (ix), by striking ``, and if the latter 2, 
        the amount received'';
            (5) in clause (x)--
                    (A) by striking ``each type of''; and
                    (B) by inserting before the period ``and, if 
                applicable, the reason for receipt of the assistance 
                for a total of more than 60 months'';
            (6) by striking clause (xi) and inserting the following:
                    ``(xi) If the adult or minor child head of 
                household participated in, and the average number of 
                hours per week of participation in, each activity 
                listed in subsections (c)(1)(i)(II) (including average 
                hours per week in each different type of rehabilitative 
                activity as prescribed by the Secretary) and (d) of 
                section 407 and other work or self-sufficiency 
                activities.''.
            (7) in clause (xii), by inserting ``and progress toward 
        universal engagement'' after ``participation rates'';
            (8) in clause (xiii), by striking ``type and'' before 
        ``amount of assistance'';
            (9) in clause (xvi), by striking subclause (II) and 
        redesignating subclauses (III) through (V) as subclauses (II) 
        through (IV), respectively; and
            (10) by adding at the end the following:
                            ``(xviii) The date the family first 
                        received assistance from the State program on 
                        the basis of the most recent application for 
                        such assistance.
                            ``(xix) Whether a self-sufficiency plan is 
                        established for the family in accordance with 
                        section 408(b).
                            ``(xx) With respect to any child in the 
                        family, the marital status of the parents at 
                        the birth of the child, and if the parents were 
                        not then married, whether the paternity of the 
                        child has been established.''.
    (b) Use of Samples.--Section 411(a)(1)(B) (42 U.S.C. 611(a)(1)(B)) 
is amended--
            (1) in clause (i)--
                    (A) by striking ``a sample'' and inserting 
                ``samples''; and
                    (B) by inserting before the period ``, except that 
                the Secretary may designate core data elements that 
                must be reported on all families''; and
            (2) in clause (ii), by striking ``funded under this part'' 
        and inserting ``described in subparagraph (A)''.
    (c) Report on Families That Become Ineligible To Receive 
Assistance.--Section 411(a) (42 U.S.C. 611(a)) is amended--
            (1) by striking paragraph (5);
            (2) by redesignating paragraph (6) as paragraph (5); and
            (3) by inserting after paragraph (5) (as so redesignated) 
        the following:
            ``(6) Report on families that become ineligible to receive 
        assistance.--
                    ``(A) In general.--The report required by paragraph 
                (1) for a fiscal quarter shall include for each month 
                in the quarter the number of families and total number 
                of individuals that, during the month, became 
                ineligible to receive assistance under the State 
                program funded under this part (broken down by the 
                number of families that become so ineligible due to 
                earnings, changes in family composition that result in 
                increased earnings, sanctions, time limits, or other 
                specified reasons).
                    ``(B) Information regarding families in separate 
                state programs.--The report required by paragraph (1) 
                for a fiscal quarter shall include for each month in 
                the quarter the number of families and total number of 
                individuals that, during the month, received assistance 
                under State programs funded with qualified State 
                expenditures (as defined in section 
                409(a)(7)(B)(i)).''.
    (d) Report on TANF-Funded Child Care.--Section 411(a) (42 U.S.C. 
611(a)), as amended by subsection (c), is amended--
            (1) by redesignating paragraph (7) as paragraph (8); and
            (2) by inserting after paragraph (6) the following:
            ``(7) Report on tanf-funded child care.--
                    ``(A) In general.--Subject to subparagraphs (B), 
                (C), and (D), the report required by paragraph (1) for 
                a fiscal quarter shall include for each month in the 
                quarter the information described in section 658K(a) of 
                the Child Care and Development Block Grant Act of 1990 
                with respect to each family that received child care 
                that was funded in whole or in part with funds provided 
                under section 403 (other than funds transferred under 
                section 404(d)) or with qualified State expenditures 
                (as defined in section 409(a)(7)(B)(i)), without regard 
                to whether the family is a recipient or former 
                recipient of assistance under the State program funded 
                under this part. A State may comply with the 
                requirement of this subparagraph through the use of 
                scientifically acceptable sampling methods approved by 
                the Secretary.
                    ``(B) Coordination with other reporting 
                requirements.--
                            ``(i) In general.--The Secretary shall 
                        coordinate the reporting required under 
                        subparagraph (A) with the reporting required 
                        under the Child Care and Development Block 
                        Grant Act of 1990 to ensure that States are not 
                        required to report duplicate information on the 
                        same families in order to satisfy both 
                        requirements.
                            ``(ii) Consolidated reporting.--
                        Notwithstanding section 658K(a) of the Child 
                        Care and Development Block Grant Act of 1990, 
                        the Secretary may permit a State to submit a 
                        consolidated report to satisfy the reporting 
                        required under subparagraph (A) and the 
                        reporting required under section 658K(a) of the 
                        Child Care and Development Block Grant Act of 
                        1990, so long as the State identifies in the 
                        consolidated report the funding source for the 
                        child care provided to each family.
                    ``(C) Waiver of reporting requirement.--The 
                Secretary may grant a State a waiver from the 
                requirement to comply with subparagraph (A) if--
                            ``(i) the Secretary determines that the 
                        State has demonstrated that it would be 
                        administratively or financially burdensome for 
                        the State to comply with such subparagraph; and
                            ``(ii) in the case of a State, the State 
                        agrees to post on a quarterly basis on the 
                        website of the State such information as the 
                        State may have regarding the characteristics of 
                        the families that received child care that was 
                        funded in whole or in part with funds provided 
                        under this part.
                    ``(D) Applicability.--Subparagraph (A) shall apply 
                to a State on and after the first fiscal quarter that 
                begins on or after 2 years after the date of enactment 
                of the Personal Responsibility and Individual 
                Development for Everyone Act.''.
    (e) Regulations.--Paragraph (8) of section 411(a) (42 U.S.C. 
611(a)), as redesignated by subsection (d)(1), is amended--
            (1) by inserting ``and to collect the necessary data'' 
        before ``with respect to which reports'';
            (2) by striking ``subsection'' and inserting ``section''; 
        and
            (3) by striking ``in defining the data elements'' and all 
        that follows and inserting ``, the National Governors' 
        Association, the American Public Human Services Association, 
        the National Conference of State Legislatures, and others in 
        defining the data elements.''.
    (f) Additional Reports by States.--Section 411 (42 U.S.C. 611) is 
amended--
            (1) by redesignating subsection (b) as subsection (e); and
            (2) by inserting after subsection (a) the following:
    ``(b) Annual Reports on Program Characteristics.--Not later than 90 
days after the end of fiscal year 2006 and each succeeding fiscal year, 
each eligible State shall submit to the Secretary a report on the 
characteristics of State programs funded under this part and other 
State programs funded with qualified State expenditures (as defined in 
section 409(a)(7)(B)(i)). The report shall include, with respect to 
each such program, the program name, a description of program 
activities, the program purpose, the program eligibility criteria, the 
sources of program funding, the number of program beneficiaries, 
sanction policies, and any program work requirements.
    ``(c) Monthly Reports on Caseload.--Not later than 3 months after 
the end of each calendar month that begins 1 year or more after the 
date of enactment of this subsection, each eligible State shall submit 
to the Secretary a report on the number of families and total number of 
individuals receiving assistance in the calendar month under the State 
program funded under this part and under other State programs funded 
with qualified State expenditures (as defined in section 
409(a)(7)(B)(i)).
    ``(d) Annual Report on Performance Improvement and Progress Toward 
Universal Engagement.--Beginning with fiscal year 2007, not later than 
January 1 of each fiscal year, each eligible State shall submit to the 
Secretary a report--
            ``(1) on achievement and improvement during the preceding 
        fiscal year under the performance goals and measures under the 
        State program funded under this part or with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)) with 
        respect to each of the matters described in section 
        402(a)(1)(A)(v); and
            ``(2) that details State progress toward full engagement 
        for all adult or minor child head of household recipients of 
        assistance.''.
    (g) Annual Reports to Congress by the Secretary.--Section 411(e) 
(42 U.S.C. 611(e)), as so redesignated by subsection (f) of this 
section, is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``and each fiscal year thereafter'' and inserting ``and not 
        later than July 1 of each fiscal year thereafter'';
            (2) in paragraph (2), by striking ``families applying for 
        assistance,'' and by striking the last comma; and
            (3) in paragraph (3), by inserting ``and other programs 
        funded with qualified State expenditures (as defined in section 
        409(a)(7)(B)(i))'' before the semicolon.

SEC. 113. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

    (a) Funding for Tribal TANF programs.--
            (1) Reauthorization of tribal family assistance grants.--
        Section 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by 
        striking ``1997, 1998, 1999, 2000, 2001, 2002, and 2003'' and 
        inserting ``2006 through 2010''.
            (2) Grants for indian tribes that received jobs funds.--
        Section 412(a)(2) (42 U.S.C. 612(a)(2)) is amended--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Grant authority.--For each of fiscal years 
                2006 through 2010, the Secretary shall pay to each 
                eligible Indian tribe that proposes to operate a 
                program described in subparagraph (C), a grant in an 
                amount that bears the same ratio to the amount 
                specified in subparagraph (D) of this paragraph as the 
                amount required to be paid to the tribe under this 
                paragraph for fiscal year 2004 bears to the total 
                amount required to be paid under this paragraph for 
                such fiscal year.''; and
                    (B) in subparagraph (D), by striking ``$7,633,287'' 
                and inserting ``$12,633,287''.
    (b) Tribal Welfare Programs.--Section 412(a) (42 U.S.C. 612(a)) is 
amended by adding at the end the following:
            ``(4) Tribal improvement grants.--
                    ``(A) Tribal capacity grants.--
                            ``(i) In general.--Of the amount 
                        appropriated under subparagraph (D) for the 
                        period of fiscal years 2006 through 2010, 
                        $40,000,000 shall be used by the Secretary to 
                        award grants for tribal human services program 
                        infrastructure improvement (as defined in 
                        clause (v)) to--
                                    ``(I) Indian tribes that have 
                                applied for approval of a tribal family 
                                assistance plan and that meet the 
                                requirements of clause (ii)(I);
                                    ``(II) Indian tribes with an 
                                approved tribal family assistance plan 
                                and that meet the requirements of 
                                clause (ii)(II); and
                                    ``(III) Indian tribes that have 
                                applied for approval of a foster care 
                                and adoption assistance program under 
                                section 479B or that plan to enter 
                                into, or have in place, a tribal-State 
                                cooperative agreement under section 
                                479B(c) and that meet the requirements 
                                of clause (ii)(III).
                            ``(ii) Priorities for awarding of grants.--
                        The Secretary shall give priority in awarding 
                        grants under this subparagraph as follows:
                                    ``(I) First, for grants to Indian 
                                tribes that have applied for approval 
                                of a tribal family assistance plan, 
                                that have not operated such a plan as 
                                of the date of enactment of the 
                                Personal Responsibility and Individual 
                                Development for Everyone Act that will 
                                have such plan approved, and that 
                                include in the plan submission 
                                provisions for tribal human services 
                                program infrastructure improvement (as 
                                so defined) and related management 
                                information systems training.
                                    ``(II) Second, for Indian tribes 
                                with an approved tribal family 
                                assistance plan that are not described 
                                in subclause (I) and that submit an 
                                addendum to such plan that includes 
                                provisions for tribal human services 
                                program infrastructure improvement that 
                                includes implementing or improving 
                                management information systems of the 
                                tribe (including management information 
                                systems training), as such systems 
                                relate to the operation of the tribal 
                                family assistance plan.
                                    ``(III) Third, for Indian tribes 
                                that have applied for approval of a 
                                foster care and adoption assistance 
                                program under section 479B or that plan 
                                to enter into, or have in place, a 
                                tribal-State cooperative agreement 
                                under section 479B(c) and that include 
                                in the plan submission under section 
                                471 (or in an addendum to such plan) 
                                provisions for tribal human services 
                                program infrastructure improvement (as 
                                so defined) and related management 
                                information systems training.
                            ``(iii) Other requirements for awarding 
                        grants.--In awarding grants under this 
                        subparagraph, the Secretary--
                                    ``(I) may not award an Indian tribe 
                                more than 1 grant under this 
                                subparagraph per fiscal year;
                                    ``(II) shall award grants in such a 
                                manner as to maximize the number of 
                                Indian tribes that receive grants under 
                                this subparagraph; and
                                    ``(III) shall consult with Indian 
                                tribes located throughout the United 
                                States.
                            ``(iv) Application.--An Indian tribe 
                        desiring a grant under this subparagraph shall 
                        submit an application to the Secretary, at such 
                        time, in such manner, and containing such 
                        information as the Secretary may require.
                            ``(v) Definition of human services program 
                        infrastructure improvement.--In this 
                        subparagraph, the term `human services program 
                        infrastructure improvement' includes (but is 
                        not limited to) improvement of management 
                        information systems, management information 
                        systems-related training, equipping offices, 
                        and renovating, but not constructing, 
                        buildings, as described in an application for a 
                        grant under this subparagraph, and subject to 
                        approval by the Secretary.
                    ``(B) Tribal development grants.--
                            ``(i) In general.--Of the amount 
                        appropriated under subparagraph (D) for the 
                        period of fiscal years 2006 through 2010, 
                        $35,000,000 shall be used by the Secretary to 
                        award, through the Commissioner of the 
                        Administration for Native Americans, grants to 
                        nonprofit organizations, Indian tribes, and 
                        tribal organizations to enable such 
                        organizations and tribes to provide technical 
                        assistance to Indian tribes and tribal 
                        organizations in any or all of the following 
                        areas:
                                    ``(I) The development and 
                                improvement of uniform commercial 
                                codes.
                                    ``(II) The creation or expansion of 
                                small business or microenterprise 
                                programs.
                                    ``(III) The development and 
                                improvement of tort liability codes.
                                    ``(IV) The creation or expansion of 
                                tribal marketing efforts.
                                    ``(V) The creation or expansion of 
                                for-profit collaborative business 
                                networks.
                                    ``(VI) The development of 
                                innovative uses of telecommunications 
                                to assist with distance learning or 
                                telecommuting.
                                    ``(VII) The development of economic 
                                opportunities and job creation in areas 
                                of high joblessness (as defined in 
                                section 408(a)(7)(D)).
                            ``(ii) Requirements.--
                                    ``(I) In general.--At least an 
                                amount equal to 30 percent of the total 
                                amount of grants awarded under this 
                                subparagraph shall be awarded to carry 
                                out clause (i)(VII).
                                    ``(II) Consultation.--In awarding 
                                grants under this subparagraph the 
                                Secretary shall consult with other 
                                Federal agencies with expertise in the 
                                areas described in clause (i).
                            ``(iii) Application.--A nonprofit 
                        organization, Indian tribe, or tribal 
                        organization desiring a grant under this 
                        subparagraph shall submit an application to the 
                        Secretary at such time, in such manner, and 
                        containing such information as the Secretary 
                        may require.
                    ``(C) Technical assistance.--
                            ``(i) In general.--Of the amount 
                        appropriated under subparagraph (D) for the 
                        period of fiscal years 2006 through 2010, 
                        $5,000,000 shall be used by the Secretary for 
                        making grants, or entering into contracts, to 
                        provide technical assistance to Indian tribes--
                                    ``(I) in applying for or carrying 
                                out a grant made under this paragraph;
                                    ``(II) in applying for or carrying 
                                out a tribal family assistance plan 
                                under this section; or
                                    ``(III) related to best practices 
                                and approaches for State and tribal 
                                coordination on the transfer of the 
                                administration of social services 
                                programs to Indian tribes.
                            ``(ii) Reservation of funds.--Not less 
                        than--
                                    ``(I) $2,500,000 of the amount 
                                described in clause (i) shall be used 
                                by the Secretary to support, through 
                                grants or contracts, peer-learning 
                                programs among tribal administrators; 
                                and
                                    ``(II) $1,000,000 of such amount 
                                shall be used by the Secretary for 
                                making grants to Indian tribes to 
                                conduct feasibility studies of the 
                                capacity of Indian tribes to operate 
                                tribal family assistance plans under 
                                this part or foster care and adoption 
                                assistance programs under section 479B.
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there is appropriated $80,000,000 for the 
                period of fiscal years 2006 through 2010 to carry out 
                this paragraph. Amounts appropriated under this 
                subparagraph shall remain available until expended.''.
    (c) Clarification of Application of Indian Employment, Training and 
Related Services Demonstration Act of 1992.--Section 412 (42 U.S.C.612) 
is amended by adding at the end the following:
    ``(j) Application of Indian employment, Training and Related 
Services Demonstration Act of 1992.--Notwithstanding any other 
provision of law, if an Indian tribe elects to incorporate the services 
it provides using funds made available under this part into a plan 
under section 6 of the Indian Employment, Training and Related Services 
Demonstration Act of 1992 (25 U.S.C. 3405), the programs authorized to 
be conducted with such funds shall be--
            ``(1) considered to be programs subject to section 5 of the 
        Indian Employment, Training and Related Services Demonstration 
        Act of 1992 (25 U.S.C. 3404); and
            ``(2) subject to the single plan and single budget 
        requirements of section 6 of that Act (25 U.S.C. 3505) and the 
        single report format required under section 11 of that Act (25 
        U.S.C. 3410).''.
    (d) Ensuring Equitable Access.--
            (1) State plan requirement.--Section 402(a)(1)(B) (42 
        U.S.C. 602(a)(1)(B)), as amended by section 101(a)(1)(B) is 
        amended by adding at the end the following:
                            ``(viii) The document shall describe how 
                        the State will ensure equitable access to 
                        benefits and services provided under the 
                        program for each member of an Indian tribe or 
                        tribal organization, who is domiciled in the 
                        State and is not eligible for assistance under 
                        a tribal family assistance plan approved under 
                        section 412.''.
            (2) Tribal family assistance plan requirement.--Section 
        412(b)(1) of the Social Security Act (42 U.S.C. 612(b)(1)) is 
        amended--
                    (A) in subparagraph (E), by striking ``and'' at the 
                end;
                    (B) in subparagraph (F), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(G) describes how the Indian tribe will ensure 
                equitable access to benefits and services provided 
                under the plan for each member of the population to be 
                served by the plan.''.
            (3) Consultation between states and indian tribes or other 
        indians residing on a reservation.--Section 402(a)(5) (42 
        U.S.C. 602(a)(5)) is amended by striking ``will'' and all that 
        follows through the period and inserting ``will--
                    ``(A) consult with each Indian tribe and tribal 
                organization located within the State regarding the 
                State plan in order to ensure equitable access to 
                benefits and services provided under the plan for any 
                member of such a tribe or organization who is not 
                eligible for assistance under a tribal family 
                assistance plan approved under section 412; and
                    ``(B) provide each member of an Indian tribe or 
                tribal organization, who is domiciled in the State and 
                is not eligible for assistance under a tribal family 
                assistance plan approved under section 412, with 
                equitable access to assistance under the State program 
                funded under this part attributable to funds provided 
                by the Federal Government.''.
    (e) Annual Report to Congress.--
            (1) Inclusion of information on indians served by state 
        programs.--Section 411(e) (42 U.S.C. 611(e)), as redesignated 
        by section 112(f)(1), is amended--
                    (A) in paragraph (3), by striking ``and'' at the 
                end;
                    (B) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(5) State specific information on the demographics and 
        caseload characteristics of Indians served by each State 
        program funded under this part or with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)).''.
            (2) Conforming amendments.--Section 411(a) of the Social 
        Security Act (42 U.S.C. 611(a)), as amended by section 112(d), 
        is amended--
                    (A) by redesignating paragraph (8) as paragraph 
                (9); and
                    (B) by inserting after paragraph (7), the 
                following:
            ``(8) Report on indians served by the state program.--The 
        report required by paragraph (1) for a fiscal quarter shall 
        include information on the demographics and caseload 
        characteristics of Indians served by each State program funded 
        under this part or with qualified State expenditures (as 
        defined in section 409(a)(7)(B)(i)) during the quarter.''.
    (g) GAO Study and Report.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study of the demographics of Indians who do 
        not--
                    (A) reside in Indian country (as defined in section 
                1151 of title 18, United States Code);
                    (B) reside in Alaska; or
                    (C) receive assistance under a tribal family 
                assistance plan under section 412 of the Social 
                Security Act (42 U.S.C. 612).
            (2) Requirement.--The study conducted under subparagraph 
        (A) shall include economic and health information regarding the 
        Indians described in that paragraph, as well as information 
        regarding the access of all Indians to benefits or services 
        available under non-tribal publicly funded programs serving 
        low-income families.
            (3) Report.--Not later than January 1, 2007, the 
        Comptroller General shall submit to Congress a report on the 
        study conducted under paragraph (1).

SEC. 114. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    (a) Secretary's Fund for Research, Demonstrations, and Technical 
Assistance.--
            (1) In general.--Section 413 (42 U.S.C. 613), as amended by 
        section 103(c), is amended by adding at the end the following:
    ``(m) Funding for Research, Demonstrations, and Technical 
Assistance.--
            ``(1) Appropriation.--
                    ``(A) In general.--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 2010, which shall remain available to the 
                Secretary until expended.
                    ``(B) Use of funds.--
                            ``(i) In general.--Funds appropriated under 
                        subparagraph (A) shall be used for the purpose 
                        of--
                                    ``(I) conducting or supporting 
                                research and demonstration projects by 
                                public or private entities; or
                                    ``(II) providing technical 
                                assistance in connection with a purpose 
                                of the program funded under this part, 
                                as described in section 401(a), to 
                                States, Indian tribal organizations, 
                                sub-State entities, and such other 
                                entities as the Secretary may specify.
                            ``(ii) Requirement.--Not less than 80 
                        percent of the funds appropriated under 
                        subparagraph (A) for a fiscal year shall be 
                        expended for the purpose of conducting or 
                        supporting research and demonstration projects, 
                        or for providing technical assistance, in 
                        connection with activities described in section 
                        403(a)(2)(B). Funds appropriated under 
                        subparagraph (A) and expended in accordance 
                        with this clause shall be in addition to any 
                        other funds made available under this part for 
                        activities described in section 403(a)(2)(B).
            ``(2) Secretary's authority.--The Secretary may conduct 
        activities authorized by this subsection directly or through 
        grants, contracts, or interagency agreements with public or 
        private entities.
            ``(3) Requirement for use of funds.--The Secretary shall 
        not pay any funds appropriated under paragraph (1)(A) to an 
        entity for the purpose of conducting or supporting research and 
        demonstration projects involving activities described in 
        section 403(a)(2)(B) unless the entity complies with the 
        requirements of section 403(a)(2)(E).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of enactment of this Act.
    (b) Funding of Studies and Demonstrations.--Section 413(h)(1) (42 
U.S.C. 613(h)(1)) is amended in the matter preceding subparagraph (A) 
by striking ``1997 through 2002'' and inserting ``2006 through 2010''.
    (c) Program Coordination Demonstration Projects.--
            (1) Purpose.--The purpose of this subsection is to 
        establish a program of demonstration projects in a State or 
        portion of a State to coordinate assistance provided under 
        qualified programs for the purpose of supporting working 
        individuals and families, helping families escape welfare 
        dependency, promoting child well-being, or helping build 
        stronger families, using innovative approaches to strengthen 
        service systems and provide more coordinated and effective 
        service delivery.
            (2) Definitions.--In this subsection:
                    (A) Qualified program.--The term ``qualified 
                program'' means--
                            (i) a program under part A of title IV of 
                        the Social Security Act (42 U.S.C. 601 et 
                        seq.);
                            (ii) the program under title XX of the 
                        Social Security Act (42 U.S.C. 1397 et seq.); 
                        and
                            (iii) child care assistance funded under 
                        section 418 of the Social Security Act (42 
                        U.S.C. 618).
                    (B) Secretary.--The term ``Secretary'' means the 
                Secretary of Health and Human Services.
            (3) Application requirements.--The head of a State entity 
        or of a sub-State entity administering 2 or more qualified 
        programs proposed to be included in a demonstration project 
        under this subsection shall (or, if the project is proposed to 
        include qualified programs administered by 2 or more such 
        entities, the heads of the administering entities (each of whom 
        shall be considered an applicant for purposes of this 
        subsection) shall jointly) submit to the Secretary an 
        application that contains the following:
                    (A) Programs included.--A statement identifying 
                each qualified program to be included in the project, 
                and describing how the purposes of each such program 
                will be achieved by the project.
                    (B) Population served.--A statement identifying the 
                population to be served by the project and specifying 
                the eligibility criteria to be used.
                    (C) Description and justification.--A detailed 
                description of the project, including--
                            (i) a description of how the project is 
                        expected to improve or enhance achievement of 
                        the purposes of the programs to be included in 
                        the project, from the standpoint of quality, of 
                        cost-effectiveness, or of both; and
                            (ii) a description of the performance 
                        objectives for the project, including any 
                        proposed modifications to the performance 
                        measures and reporting requirements used in the 
                        programs.
                    (D) Waivers requested.--A description of the 
                statutory and regulatory requirements with respect to 
                which a waiver is requested in order to carry out the 
                project, and a justification of the need for each such 
                waiver.
                    (E) Cost neutrality.--Such information and 
                assurances as necessary to establish to the 
                satisfaction of the Secretary, in consultation with the 
                Director of the Office of Management and Budget, that 
                the proposed project is reasonably expected to meet the 
                applicable cost neutrality requirements of paragraph 
                (4)(E).
                    (F) Evaluation and reports.--An assurance that the 
                applicant will--
                            (i) obtain an evaluation by an independent 
                        contractor of the effectiveness of the project 
                        using an evaluation design that, to the maximum 
                        extent feasible, includes random assignment of 
                        clients (or entities serving such clients) to 
                        service delivery and control groups; and
                            (ii) make interim and final reports to the 
                        Secretary, at such times and in such manner as 
                        the Secretary may require.
                    (G) Other information and assurances.--Such other 
                information and assurances as the Secretary may 
                require.
            (4) Approval of applications.--
                    (A) In general.--The Secretary with respect to a 
                qualified program that is identified in an application 
                submitted pursuant to subsection (c) may approve the 
                application and, except as provided in subparagraph 
                (B), waive any requirement applicable to the program, 
                to the extent consistent with this subsection and 
                necessary and appropriate for the conduct of the 
                demonstration project proposed in the application, if 
                the Secretary determines that the project--
                            (i) has a reasonable likelihood of 
                        achieving the objectives of the programs to be 
                        included in the project;
                            (ii) may reasonably be expected to meet the 
                        applicable cost neutrality requirements of 
                        subparagraph (E), as determined by the Director 
                        of the Office of Management and Budget;
                            (iii) includes the coordination of 2 or 
                        more qualified programs; and
                            (iv) provides for an independent evaluation 
                        that includes random assignment to the maximum 
                        extent feasible, as described in paragraph 
                        (3)(F), and which the Secretary determines to 
                        be appropriate for assessing the effectiveness 
                        of the project.
                    (B) Provisions excluded from waiver authority.--A 
                waiver shall not be granted under subparagraph (A)--
                            (i) with respect to any provision of law 
                        relating to--
                                    (I) civil rights or prohibition of 
                                discrimination;
                                    (II) purposes or goals of any 
                                program;
                                    (III) maintenance of effort 
                                requirements;
                                    (IV) health, safety, or a licensing 
                                requirement;
                                    (V) requirements relating to the 
                                use of financial assistance for 
                                activities to improve the quality and 
                                availability of child care;
                                    (VI) report and audit requirements 
                                of the Child Care and Development Block 
                                Grant Act of 1990 (42 U.S.C. 9858 et 
                                seq.);
                                    (VII) requirements of that Act that 
                                limit what financial assistance shall 
                                be expended for;
                                    (VIII) the State plan and State 
                                application requirements specified in 
                                section 658E of that Act (42 U.S.C. 
                                9858c);
                                    (IX) labor standards under the Fair 
                                Labor Standards Act of 1938; or
                                    (X) environmental protection;
                            (ii) in the case of child care assistance 
                        funded under section 418 of the Social Security 
                        Act (42 U.S.C. 618), with respect to the 
                        requirement under the first sentence of 
                        subsection (b)(1) of that section that funds 
                        received by a State under that section shall 
                        only be used to provide child care assistance;
                            (iii) with respect to any requirement that 
                        a State pass through to a sub-State entity part 
                        or all of an amount paid to the State;
                            (iv) if the waiver would waive any funding 
                        restriction or limitation provided in an 
                        appropriations Act, or would have the effect of 
                        transferring appropriated funds from 1 
                        appropriations account to another; or
                            (v) except as otherwise provided by 
                        statute, if the waiver would waive any funding 
                        restriction applicable to a program authorized 
                        under an Act which is not an appropriations Act 
                        (but not including program requirements such as 
                        application procedures, performance standards, 
                        reporting requirements, or eligibility 
                        standards), or would have the effect of 
                        transferring funds from a program for which 
                        there is direct spending (as defined in section 
                        250(c)(8) of the Balanced Budget and Emergency 
                        Deficit Control Act of 1985) to another 
                        program.
                    (C) 10 state limitation.--The Director of the 
                Office of Management and Budget shall establish a 
                procedure for ensuring that not more than 10 States 
                (including any portion of a State) conduct a 
                demonstration project under this subsection.
                    (D) Agreement of secretary required.--
                            (i) In general.--An applicant may not 
                        conduct a demonstration project under this 
                        subsection unless the Secretary, with respect 
                        to each qualified program proposed to be 
                        included in the project, has approved the 
                        application to conduct the project.
                            (ii) Agreement with respect to funding and 
                        implementation.--Before approving an 
                        application to conduct a demonstration project 
                        under this subsection, the Secretary shall have 
                        in place an agreement with the applicant with 
                        respect to the payment of funds and 
                        responsibilities required of the Secretary with 
                        respect to the project.
                    (E) Cost-neutrality requirement.--
                            (i) General rule.--Notwithstanding any 
                        other provision of law (except as provided in 
                        clause (ii)), the total of the amounts that may 
                        be paid by the Federal Government for a fiscal 
                        year with respect to the programs in the State 
                        in which an entity conducting a demonstration 
                        project under this subsection is located that 
                        are affected by the project shall not exceed 
                        the estimated total amount that the Federal 
                        Government would have paid for the fiscal year 
                        with respect to the programs if the project had 
                        not been conducted, as determined by the 
                        Director of the Office of Management and 
                        Budget.
                            (ii) Special rule.--If an applicant submits 
                        to the Director of the Office of Management and 
                        Budget a request to apply the rules of this 
                        clause to the programs in the State in which 
                        the applicant is located that are affected by a 
                        demonstration project proposed in an 
                        application submitted by the applicant pursuant 
                        to this section, during such period of not more 
                        than 5 consecutive fiscal years in which the 
                        project is in effect, and the Director 
                        determines, on the basis of supporting 
                        information provided by the applicant, to grant 
                        the request, then, notwithstanding any other 
                        provision of law, the total of the amounts that 
                        may be paid by the Federal Government for the 
                        period with respect to the programs shall not 
                        exceed the estimated total amount that the 
                        Federal Government would have paid for the 
                        period with respect to the programs if the 
                        project had not been conducted.
                    (F) 90-day approval deadline.--
                            (i) In general.--If the Secretary receives 
                        an application to conduct a demonstration 
                        project under this subsection and does not 
                        disapprove the application within 90 days after 
                        the receipt, then, subject to the 10 State 
                        limitation under paragraph (3)--
                                    (I) the Secretary is deemed to have 
                                approved the application for such 
                                period as is requested in the 
                                application, except to the extent 
                                inconsistent with paragraph (5); and
                                    (II) any waiver requested in the 
                                application which applies to a 
                                qualified program that is identified in 
                                the application and is administered by 
                                the Secretary is deemed to be granted, 
                                except to the extent inconsistent with 
                                subparagraph (B) or (E) of this 
                                paragraph.
                            (ii) Deadline extended if additional 
                        information is sought.--The 90-day period 
                        referred to in clause (i) shall not include any 
                        period that begins with the date the Secretary 
                        requests the applicant to provide additional 
                        information with respect to the application and 
                        ends with the date the additional information 
                        is provided.
            (5) Duration of projects.--A demonstration project under 
        this subsection may be approved for a term of not more than 5 
        years.
            (6) Reports to congress.--
                    (A) Report on disposition of applications.--Within 
                90 days after the date the Secretary receives an 
                application submitted pursuant to this subsection, the 
                Secretary shall submit to the Committee on Finance of 
                the Senate and the Committee on Ways and Means of the 
                House of Representatives notice of the receipt, a 
                description of the decision of the Secretary with 
                respect to the application, and the reasons for 
                approving or disapproving the application.
                    (B) Reports on projects.--The Secretary shall 
                provide annually to Congress a report concerning 
                demonstration projects approved under this subsection, 
                including--
                            (i) the projects approved for each 
                        applicant;
                            (ii) the number of waivers granted under 
                        this subsection, and the specific statutory 
                        provisions waived;
                            (iii) how well each project for which a 
                        waiver is granted is improving or enhancing 
                        program achievement from the standpoint of 
                        quality, cost-effectiveness, or both;
                            (iv) how well each project for which a 
                        waiver is granted is meeting the performance 
                        objectives specified in paragraph (3)(C)(ii);
                            (v) how each project for which a waiver is 
                        granted is conforming with the cost-neutrality 
                        requirements of paragraph (4)(E); and
                            (vi) to the extent the Secretary deems 
                        appropriate, recommendations for modification 
                        of programs based on outcomes of the projects.
    (d) Research on Indicators of Child Well-Being.--Section 413 (42 
U.S.C. 613), as amended by subsection (a)(1), is amended by adding at 
the end the following:
    ``(n) Indicators of Child Well-Being.--
            ``(1) In general.--The Secretary, through grants, 
        contracts, or interagency agreements shall develop 
        comprehensive indicators to assess child well-being in each 
        State.
            ``(2) Requirements.--
                    ``(A) In general.--The indicators developed under 
                paragraph (1) shall include measures related to the 
                following:
                            ``(i) Education.
                            ``(ii) Social and emotional development.
                            ``(iii) Health and safety.
                            ``(iv) Family well-being, such as family 
                        structure, income, employment, child care 
                        arrangements, and family relationships.
                    ``(B) Other requirements.--The data collected with 
                respect to the indicators developed under paragraph (1) 
                shall be--
                            ``(i) statistically representative at the 
                        State level;
                            ``(ii) consistent across States;
                            ``(iii) collected on an annual basis for at 
                        least the 5 years following the first year of 
                        collection;
                            ``(iv) expressed in terms of rates or 
                        percentages;
                            ``(v) statistically representative at the 
                        national level;
                            ``(vi) measured with reliability;
                            ``(vii) current;
                            ``(viii) over-sampled, with respect to low-
                        income children and families; and
                            ``(ix) made publicly available.
                    ``(C) Consultation.--In developing the indicators 
                required under paragraph (1) and the means to collect 
                the data required with respect to the indicators, the 
                Secretary shall consult and collaborate with the 
                Federal Interagency Forum on Child and Family 
                Statistics.
            ``(3) Advisory panel.--
                    ``(A) Establishment.--The Secretary shall establish 
                an advisory panel to make recommendations regarding the 
                appropriate measures and statistical tools necessary 
                for making the assessment required under paragraph (1) 
                based on the indicators developed under that paragraph 
                and the data collected with respect to the indicators.
                    ``(B) Membership.--
                            ``(i) In general.--The advisory panel 
                        established under subparagraph (A) shall 
                        consist of the following:
                                    ``(I) One member appointed by the 
                                Secretary of Health and Human Services.
                                    ``(II) One member appointed by the 
                                Chairman of the Committee on Ways and 
                                Means of the House of Representatives.
                                    ``(III) One member appointed by the 
                                Ranking Member of the Committee on Ways 
                                and Means of the House of 
                                Representatives.
                                    ``(IV) One member appointed by the 
                                Chairman of the Committee on Finance of 
                                the Senate.
                                    ``(V) One member appointed by the 
                                Ranking Member of the Committee on 
                                Finance of the Senate.
                                    ``(VI) One member appointed by the 
                                Chairman of the National Governors 
                                Association, or the Chairman's 
                                designee.
                                    ``(VII) One member appointed by the 
                                President of the National Conference of 
                                State Legislatures or the President's 
                                designee.
                                    ``(VIII) One member appointed by 
                                the Director of the National Academy of 
                                Sciences, or the Director's designee.
                            ``(ii) Deadline.--The members of the 
                        advisory panel shall be appointed not later 
                        than 2 months after the date of enactment of 
                        the Personal Responsibility and Individual 
                        Development for Everyone Act.
                    ``(C) Meetings.--The advisory panel established 
                under subparagraph (A) shall meet--
                            ``(i) at least 3 times during the first 
                        year after the date of enactment of the 
                        Personal Responsibility and Individual 
                        Development for Everyone Act; and
                            ``(ii) annually thereafter for the 3 
                        succeeding years.
            ``(4) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated for each of fiscal years 2006 through 2010, 
        $10,000,000 for the purpose of carrying out this subsection.''.
    (e) Domestic Violence Prevention Grants.--Section 413 (42 U.S.C. 
613), as amended by subsection (d), is amended by adding at the end the 
following:
    ``(o) Domestic Violence Prevention Grants.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible entities to enable such entities to carry out domestic 
        violence prevention activities. In carrying out this 
        subsection, the Secretary shall make public the criteria to be 
        used by the Secretary for awarding such grants.
            ``(2) Eligibility.--To be eligible to receive a grant under 
        this subsection, an entity shall--
                    ``(A) be a State, Indian tribe or tribal 
                organization, or nonprofit domestic violence prevention 
                organization; and
                    ``(B) submit to the Secretary an application at 
                such time, in such manner, and containing such 
                information as the Secretary may require.
            ``(3) Activities.--An entity shall use amounts received 
        under a grant awarded under this subsection to--
                    ``(A) develop and disseminate best practices for 
                addressing domestic violence (as defined in section 
                402(a)(7)(B));
                    ``(B) implement voluntary skills programs on 
                domestic violence as a barrier to economic security, 
                including providing caseworker training, technical 
                assistance, and voluntary services for victims of 
                domestic violence;
                    ``(C) provide broad-based income support and 
                supplementation strategies that provide increased 
                assistance to low-income working adults, such as 
                housing, transportation, and transitional benefits as a 
                means to reduce domestic violence; or
                    ``(D) carry out programs to enhance relationship 
                skills and financial management skills, to teach 
                individuals how to control aggressive behavior, and to 
                disseminate information on the causes of domestic 
                violence and child abuse.
            ``(4) Matching requirement.--The Secretary may not award a 
        grant to an entity under this subsection unless the entity 
        agrees that, with respect to the costs to be incurred by the 
        entity in carrying out the program for which the grant was 
        awarded, the entity will make available (directly or through 
        donations from public or private entities) non-Federal 
        contributions toward such costs in an amount equal to not less 
        than 25 percent of such costs ($1 for each $3 of Federal funds 
        provided under the grant).
            ``(5) Required consultation.--The Secretary may not award a 
        grant to a State or an Indian tribe or tribal organization 
        under this subsection unless such State, tribe, or tribal 
        organization agrees, in carrying out activities under the 
        grant, to consult with National, State, local, or tribal 
        organizations with demonstrated expertise in providing aid to 
        victims of domestic violence.
            ``(6) Evaluation and report.--The Secretary shall, by 
        grant, contract, or interagency agreement, conduct an 
        evaluation of the activities carried out with grants awarded 
        under this subsection and shall submit a report to Congress on 
        the results of such evaluation.
            ``(7) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection, $20,000,000 
        for each of fiscal years 2006 through 2010.''.
    (f) Research on Tribal Welfare Programs and Poverty Among 
Indians.--Section 413 (42 U.S.C. 613), as amended by subsection (e), is 
amended by adding at the end the following:
    ``(p) Tribal Welfare Programs and Efforts To Reduce Poverty Among 
Indians.--
            ``(1) In general.--The Secretary, directly or through 
        grants, contracts, or interagency agreements, shall conduct 
        research on tribal family assistance programs conducted under 
        section 412 and other tribal welfare programs and on efforts to 
        reduce poverty among Indians.
            ``(2) Priority for certain applications.--With respect to 
        applications for grants under paragraph (1), the Secretary 
        shall give priority to applications to conduct research in 
        cooperation with tribal governments or tribally controlled 
        colleges or universities.
            ``(3) Technical assistance.--The Secretary may use funds 
        appropriated under paragraph (4) to provide technical 
        assistance concerning data reporting and collection with 
        respect to research conducted under this subsection.
            ``(4) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated $2,000,000 for fiscal year 2006 for the purpose of 
        carrying out this subsection. Funds appropriated under this 
        paragraph shall remain available to the Secretary until 
        expended.''.
    (g) Report on Enforcement of Certain Affidavits of Support and 
Sponsor Deeming.--Not later than March 31, 2006, the Secretary of 
Health and Human Services, in consultation with the Attorney General, 
shall submit to the Congress a report on the enforcement of affidavits 
of support and sponsor deeming as required by sections 421, 422, and 
432 of the Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996.

SEC. 115. STUDY BY THE CENSUS BUREAU.

    (a) In General.--Section 414(a) (42 U.S.C. 614(a)) is amended to 
read as follows:
    ``(a) In General.--The Bureau of the Census shall implement or 
enhance a longitudinal survey of program participation, developed in 
consultation with the Secretary and made available to interested 
parties, to allow for the assessment of the outcomes of continued 
welfare reform on the economic and child well-being of low-income 
families with children, including those who received assistance or 
services from a State program funded under this part, and, to the 
extent possible, shall provide State representative samples. The 
content of the survey should include such information as may be 
necessary to examine the issues of out-of-wedlock childbearing, 
marriage, welfare dependency and compliance with work requirements, the 
beginning and ending of spells of assistance, work, earnings and 
employment stability, and the well-being of children.''.
    (b) Reports on the Well-Being of Children and Families.--Section 
414 (42 U.S.C. 614), as amended by subsection (a), is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Reports on the Well-Being of Children and Families.--
            ``(1) In general.--Not later than 24 months after the date 
        of enactment of the Personal Responsibility and Individual 
        Development for Everyone Act, the Secretary of Commerce shall 
        prepare and submit to the Committee on Finance of the Senate 
        and the Committee on Ways and Means of the House of 
        Representatives a report on the well-being of children and 
        families using data collected under subsection (a).
            ``(2) Second report.--Not later than 60 months after such 
        date of enactment, the Secretary of Commerce shall submit a 
        second report to the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of Representatives on 
        the well-being of children and families using data collected 
        under subsection (a).
            ``(3) Inclusion of comparable measures.--Where comparable 
        measures for data collected under subsection (a) exist in 
        surveys previously administered by the Bureau of the Census, 
        appropriate comparisons shall be made and included in each 
        report required under this subsection on the well-being of 
        children and families to assess changes in such measures.''.
    (c) Appropriation.--Section 414(c) (42 U.S.C. 614(c)), as 
redesignated by subsection (b)(1), is amended by striking ``1996,'' and 
all that follows through the period and inserting ``2006 through 2010 
for payment to the Bureau of the Census to carry out this section. 
Funds appropriated under this subsection for a fiscal year shall remain 
available through fiscal year 2010 to carry out this section.''.

SEC. 116. FUNDING FOR CHILD CARE.

    (a) Increase in Mandatory Funding.--Section 418(a)(3) (42 U.S.C. 
618(a)(3)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(G) $2,917,000,000 for each of fiscal years 2006 
                through 2010.''.
    (b) Reservation of Child Care Funds.--
            (1) In general.--Section 418(a)(4) (42 U.S.C. 618(a)(4)) is 
        amended to read as follows:
            ``(4) Amounts reserved.--
                    ``(A) Indian tribes and tribal organizations.--
                            ``(i) In general.--The Secretary shall 
                        reserve 2 percent of the aggregate amount 
                        appropriated to carry out this section for a 
                        fiscal year for payments to Indian tribes and 
                        tribal organizations for such fiscal year for 
                        the purpose of providing child care assistance.
                            ``(ii) Application of ccdbg requirements.--
                        Payments made under this subparagraph shall be 
                        subject to the requirements that apply to 
                        payments made to Indian tribes and tribal 
                        organizations under the Child Care and 
                        Development Block Grant Act of 1990.
                    ``(B) Territories.--
                            ``(i) Puerto rico.--The Secretary shall 
                        reserve 1.5 percent of the amount appropriated 
                        under paragraph (5)(A)(i) for a fiscal year for 
                        payments to the Commonwealth of Puerto Rico for 
                        such fiscal year for the purpose of providing 
                        child care assistance.
                            ``(ii) Other territories.--The Secretary 
                        shall reserve 0.5 percent of the amount 
                        appropriated under paragraph (5)(A)(i) for a 
                        fiscal year for payments to Guam, American 
                        Samoa, the Virgin Islands of the United States, 
                        and the Commonwealth of the Northern Mariana 
                        Islands in amounts which bear the same ratio to 
                        such amount as the amounts allotted to such 
                        territories under section 658O of the Child 
                        Care and Development Block Grant Act of 1990 
                        for the fiscal year bear to the total amount 
                        reserved under such section for that fiscal 
                        year.
                            ``(iii) Application of ccdbg 
                        requirements.--Payments made under this 
                        subparagraph shall be subject to the 
                        requirements that apply to payments made to 
                        territories under the Child Care and 
                        Development Block Grant Act of 1990.''.
            (2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C. 
        1308(a)(2)), as amended by section 108(b)(3), is amended by 
        striking ``or 413(f)'' and inserting ``413(f), or 
        418(a)(4)(B)''.
    (c) Supplemental Grants.--Section 418(a) (42 U.S.C. 618(a)) is 
amended--
            (1) by redesignating paragraph (5) as paragraph (7); and
            (2) by inserting after paragraph (4), the following:
            ``(5) Supplemental grants.--
                    ``(A) Appropriation.--
                            ``(i) In general.--For supplemental grants 
                        under this section, there are appropriated--
                                    ``(I) $700,000,000 for fiscal year 
                                2006;
                                    ``(II) $800,000,000 for fiscal year 
                                2007;
                                    ``(III) $1,000,000,000 for fiscal 
                                year 2008;
                                    ``(IV) $1,100,000,000 for fiscal 
                                year 2009; and
                                    ``(V) $1,400,000,000 for fiscal 
                                year 2010.
                            ``(ii) Availability.--Amounts appropriated 
                        under clause (i) for a fiscal year shall be in 
                        addition to amounts appropriated under 
                        paragraph (3) for such fiscal year and shall 
                        remain available for expenditure through fiscal 
                        year 2010.
                    ``(B) Supplemental grant.--In addition to the 
                grants paid to a State under paragraphs (1) and (2) for 
                each of fiscal years 2006 through 2010, the Secretary, 
                after reserving the amounts described in subparagraphs 
                (A) and (B) of paragraph (4) and subject to the 
                requirements described in paragraph (6), shall pay each 
                State an amount which bears the same ratio to the 
                amount specified in subparagraph (A)(i) for the fiscal 
                year (after such reservations), as the amount allotted 
                to the State under paragraph (2)(B) for fiscal year 
                2003 bears to the amount allotted to all States under 
                that paragraph for such fiscal year.
                    ``(C) Budget scoring.--Notwithstanding section 
                257(b)(2) of the Balanced Budget and Emergency Deficit 
                Control Act of 1985, the baseline shall assume that no 
                grant shall be made under this paragraph after fiscal 
                year 2010.
            ``(6) Requirements.--
                    ``(A) Maintenance of effort.--A State may not be 
                paid a supplemental grant under paragraph (5) for a 
                fiscal year unless the State ensures that the level of 
                State expenditures for child care for such fiscal year 
                is not less than the sum of--
                            ``(i) the level of State expenditures for 
                        child care that were matched under a grant made 
                        to the State under paragraph (2) for fiscal 
                        year 2003; and
                            ``(ii) the level of State expenditures for 
                        child care that the State reported as 
                        maintenance of effort expenditures for purposes 
                        of paragraph (2) for fiscal year 2003.
                    ``(B) Matching requirement for fiscal years 2009 
                and 2010.--With respect to the amount of the 
                supplemental grant made to a State under paragraph (5) 
                for each of fiscal years 2009 and 2010 that is in 
                excess of the amount of the grant made to the State 
                under paragraph (5) for fiscal year 2008, subparagraph 
                (C) of paragraph (2) shall apply to such excess amount 
                in the same manner as such subparagraph applies to 
                grants made under subparagraph (A) of paragraph (2) for 
                each of fiscal years 2009 and 2010, respectively.
                    ``(C) Redistribution.--In the case of a State that 
                fails to satisfy the requirement of subparagraph (A) 
                for a fiscal year, the supplemental grant determined 
                under paragraph (5) for the State for that fiscal year 
                shall be redistributed in accordance with paragraph 
                (2)(D).''.
    (d) Definition of Valid Taxpayer Identification Number for Earned 
Income Credit.--
            (1) In general.--Section 32(m) of the Internal Revenue Code 
        of 1986 is amended to read as follows:
    ``(m) Identification Numbers.--Solely for purposes of subsections 
(c)(1)(E) and (c)(3)(D), a taxpayer identification number means a 
social security number assigned by the Social Security Administration--
            ``(1) to a citizen of the United States, or
            ``(2) to an individual pursuant to subclause (I) (or that 
        portion of subclause (III) that relates to subclause (I)) of 
        section 205(c)(2)(B)(i) of the Social Security Act.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after the date of 
        enactment of this Act.
    (e) Denial of Child Credit for Individuals Electing Section 911.--
            (1) In general.--Section 24 of the Internal Revenue Code of 
        1986 (relating to child tax credit) is amended by adding at the 
        end the following new subsection:
    ``(g) Denial of Credit for Individuals Electing Section 911.--No 
credit shall be allowed under this section for any taxable year to a 
taxpayer who claims the benefits of section 911 (relating to citizens 
or residents living abroad) for such taxable year.''.
            (2) Conforming amendment.--Section 24(b)(1) of the Internal 
        Revenue Code of 1986 is amended by striking ``section 911, 931, 
        or 933'' and inserting ``section 931 or 933''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of 
        enactment of this Act.
    (f) Modification of Eligibility Rules for Child-Related Tax 
Benefits.--
            (1) Rules involving parents.--Paragraph (4) of section 
        152(c) of the Internal Revenue Code of 1986 (relating to 
        qualifying child) is amended to read as follows:
            ``(4) Special rules for claiming qualifying child.--
                    ``(A) Rules involving parents.--
                            ``(i) In general.--A taxpayer other than a 
                        parent of an individual may not claim such 
                        individual as a qualifying child for any 
                        taxable year beginning in a calendar year if--
                                    ``(I) a parent is eligible to claim 
                                and claims such individual as a 
                                qualifying child for any taxable year 
                                beginning in such calendar year, or
                                    ``(II) the taxpayer has a lower 
                                adjusted gross income than any parent 
                                who may claim such individual as a 
                                qualifying child for any taxable year 
                                beginning in such calendar year.
                            ``(ii) More than 1 parent claiming 
                        qualifying child.--If the parents claiming any 
                        qualifying child do not file a joint return 
                        together, such child shall be treated as the 
                        qualifying child of--
                                    ``(I) the parent with whom the 
                                child resided for the longest period of 
                                time during the taxable year, or
                                    ``(II) if the child resides with 
                                both parents for the same amount of 
                                time during such taxable year, the 
                                parent with the highest adjusted gross 
                                income.
                    ``(B) Rule for 2 or more nonparents claiming 
                qualifying child.--If an individual may be and is 
                claimed as a qualifying child by 2 or more taxpayers, 
                neither of whom is a parent of the individual, for a 
                taxable year beginning in the same calendar year, such 
                individual shall be treated as the qualifying child of 
                the taxpayer with the highest adjusted gross income for 
                such taxable year.''.
            (2) Special rule involving siblings claiming earned income 
        credit.--Section 32(c)(1)(B) of the Internal Revenue Code of 
        1986 (relating to qualifying child ineligible) is amended by 
        adding at the end the following new sentence: ``The preceding 
        sentence shall not apply with respect to any individual who is 
        a qualifying child of 1 or more brothers, sisters, 
        stepbrothers, and stepsisters who are also qualifying children 
        of such individual if among all such qualifying children, such 
        individual has the highest adjusted gross income.''.
            (3) Technical corrections related to the working families 
        tax relief act of 2004.--
                    (A) Amendment related to section 203 of the act.--
                Subparagraph (B) of section 21(b)(1) of the Internal 
                Revenue Code of 1986 is amended by inserting ``(as 
                defined in section 152, determined without regard to 
                subsections (b)(1), (b)(2), and (d)(1)(B))'' after 
                ``dependent of the taxpayer''.
                    (B) Amendment related to section 207 of the act.--
                Subparagraph (A) of section 223(d)(2) of such Code is 
                amended by inserting ``, determined without regard to 
                subsections (b)(1), (b)(2), and (d)(1)(B) thereof'' 
                after ``section 152''.
            (4) Effective dates.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by this subsection shall apply 
                to taxable years beginning after December 31, 2004.
                    (B) Technical corrections.--The amendments made by 
                paragraph (3) shall take effect as if included in the 
                provisions of the Working Families Tax Relief Act of 
                2004 to which they relate.

SEC. 117. DEFINITIONS.

    (a) In General.--Section 419 (42 U.S.C. 619) is amended by adding 
at the end the following:
            ``(6) Assistance.--
                    ``(A) In general.--The term `assistance' means 
                cash, payments, vouchers, and other forms of benefits 
                designed to meet a family's ongoing basic needs 
                (including for food, clothing, shelter, utilities, 
                household goods, personal care items and general 
                incidental expenses).
                    ``(B) Inclusion of certain benefits.--Such term 
                includes benefits even when they are--
                            ``(i) provided in the form of payments by a 
                        State agency responsible for administering the 
                        State program funded under this part, or other 
                        agency on its behalf, to individual recipients; 
                        and
                            ``(ii) conditioned on participation in work 
                        experience or community service (or any other 
                        work activity under the State program funded 
                        under this part or with qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)).
                    ``(C) Exclusion of certain benefits.--Such term 
                does not include--
                            ``(i) nonrecurrent, short-term benefits 
                        that--
                                    ``(I) are designed to deal with a 
                                specific crisis situation or episode of 
                                need;
                                    ``(II) are not intended to meet 
                                recurrent or ongoing needs; and
                                    ``(III) will not extend beyond 4 
                                months;
                            ``(ii) work subsidies (such as payments to 
                        employers or third parties to help cover the 
                        costs of employee wages, benefits, supervision, 
                        and training);
                            ``(iii) supportive services such as child 
                        care and transportation;
                            ``(iv) refundable earned income tax 
                        credits;
                            ``(v) contributions to, and distributions 
                        from, Individual Development Accounts;
                            ``(vi) services such as counseling, case 
                        management, peer support, child care 
                        information and referral, transitional 
                        services, job retention, job advancement, and 
                        other employment-related services that do not 
                        provide basic income support; and
                            ``(v) transportation benefits provided 
                        under a Job Access or Reverse Commute project, 
                        pursuant to section 404(k), to an individual 
                        who is not otherwise receiving assistance.
                    ``(D) Applicability.--Unless otherwise provided, 
                the definition of `assistance' under this paragraph--
                            ``(i) only applies for purposes of the 
                        State program funded under this part or a 
                        program funded with qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)); and
                            ``(ii) does not preclude a State from 
                        providing other types of benefits and services 
                        in support of the purposes of the State program 
                        funded under this part or a program funded with 
                        qualified State expenditures (as so 
                        defined).''.
    (b) Conforming Amendments.--
            (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by 
        striking ``assistance'' and inserting ``aid''.
            (2) Section 404(f) (42 U.S.C. 604(f)) is amended by 
        striking ``assistance'' and inserting ``benefits or services''.
            (3) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is amended by 
        striking ``assistance'' and inserting ``aid''.
            (4) Section 5(g)(2)(D) of the Food Stamp Act of 1977 (7 
        U.S.C. 2014(g)(2)(D)) is amended--
                    (A) by striking ``If the vehicle allowance'' and 
                inserting the following:
                            ``(i) In general.--If the vehicle 
                        allowance''; and
                    (B) by adding at the end the following:
                            ``(ii) Definition of assistance.--In clause 
                        (i), the term `assistance' shall have the 
                        meaning given such term in section 260.31 of 
                        title 45 of the Code of Federal Regulations, as 
                        in effect on June 1, 2002.''.
            (5) Section 1137(b)(1) (42 U.S.C. 1320b-7(b)(1)) is amended 
        by inserting ``, but only with respect to applicants for, or 
        recipients of, assistance (as defined in section 419(6)) under 
        such program'' before the semicolon.

SEC. 118. RESPONSIBLE FATHERHOOD PROGRAM.

    (a) Responsible Fatherhood Program.--
            (1) Findings.--Congress makes the following findings:
                    (A) Nearly 24,000,000 children in the United 
                States, or 34 percent of all such children, live apart 
                from their biological father.
                    (B) Sixty percent of couples who divorce have at 
                least 1 child.
                    (C) The number of children living with only a 
                mother increased from just over 5,000,000 in 1960 to 
                17,000,000 in 1999, and between 1981 and 1991 the 
                percentage of children living with only 1 parent 
                increased from 19 percent to 25 percent.
                    (D) Forty percent of children who live in 
                households without a father have not seen their father 
                in at least 1 year and 50 percent of such children have 
                never visited their father's home.
                    (E) The most important factor in a child's 
                upbringing is whether the child is brought up in a 
                loving, healthy, supportive environment.
                    (F) Children who live without contact with their 
                biological father are, in comparison to children who 
                have such contact--
                            (i) 5 times more likely to live in poverty;
                            (ii) more likely to bring weapons and drugs 
                        into the classroom;
                            (iii) twice as likely to commit crime;
                            (iv) twice as likely to drop out of school;
                            (v) more likely to commit suicide;
                            (vi) more than twice as likely to abuse 
                        alcohol or drugs; and
                            (vii) more likely to become pregnant as 
                        teenagers.
                    (G) Violent criminals are overwhelmingly males who 
                grew up without fathers.
                    (H) Between 20 and 30 percent of families in 
                poverty are headed by women who have suffered domestic 
                violence during the past year, and between 40 and 60 
                percent of women with children receiving welfare were 
                abused sometime during their life.
                    (I) Responsible fatherhood includes active 
                participation in financial support and child care, as 
                well as the formation and maintenance of a positive, 
                healthy, and nonviolent relationship between father and 
                child and a cooperative relationship between parents.
                    (J) States should be encouraged to implement 
                programs that provide support for responsible 
                fatherhood, promote marriage, and increase the 
                incidence of marriage, and should not be restricted 
                from implementing such programs.
                    (K) Fatherhood programs should promote and provide 
                support services for--
                            (i) loving and healthy relationships 
                        between parents and children; and
                            (ii) cooperative parenting.
                    (L) There is a social need to reconnect children 
                and fathers.
                    (M) The promotion of responsible fatherhood and 
                encouragement of healthy 2-parent married families 
                should not--
                            (i) denigrate the standing or parenting 
                        efforts of single mothers or other caregivers;
                            (ii) lessen the protection of children from 
                        abusive parents; or
                            (iii) compromise the safety or health of 
                        the custodial parent;
                but should increase the chance that children will have 
                2 caring parents to help them grow up healthy and 
                secure.
                    (N) The promotion of responsible fatherhood must 
                always recognize and promote the values of nonviolence.
                    (O) For the future of the United States and the 
                future of our children, Congress, States, and local 
                communities should assist parents to become more 
                actively involved in their children's lives.
                    (P) Child support is an important means by which a 
                parent can take financial responsibility for a child 
                and emotional support is an important means by which a 
                parent can take social responsibility for a child.
            (2) Fatherhood program.--Title I of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (Public Law 104-193) is amended by adding at the end the 
        following:

``SEC. 117. FATHERHOOD PROGRAM.

    ``(a) In General.--Title IV (42 U.S.C. 601-679b) is amended by 
inserting after part B the following:

               ```PART C--RESPONSIBLE FATHERHOOD PROGRAM

 ```SEC. 441. RESPONSIBLE FATHERHOOD GRANTS.

    ```(a) Grants to States To Conduct Demonstration Programs.--
            ```(1) Authority to award grants.--
                    ```(A) In general.--The Secretary shall award 
                grants to up to 10 eligible States to conduct 
                demonstration programs to carry out the purposes 
                described in paragraph (2).
                    ```(B) Eligible state.--For purposes of this 
                subsection, an eligible State is a State that submits 
                to the Secretary the following:
                            ```(i) Application.--An application for a 
                        grant under this subsection, at such time, in 
                        such manner, and containing such information as 
                        the Secretary may require.
                            ```(ii) State plan.--A State plan that 
                        includes the following:
                                    ```(I) Project description.--A 
                                description of the programs or 
                                activities the State will fund under 
                                the grant, including a good faith 
                                estimate of the number and 
                                characteristics of clients to be served 
                                under such projects and how the State 
                                intends to achieve at least 2 of the 
                                purposes described in paragraph (2).
                                    ```(II) Coordination efforts.--A 
                                description of how the State will 
                                coordinate and cooperate with State and 
                                local entities responsible for carrying 
                                out other programs that relate to the 
                                purposes intended to be achieved under 
                                the demonstration program, including as 
                                appropriate, entities responsible for 
                                carrying out jobs programs and programs 
                                serving children and families.
                                    ```(III) Records, reports, and 
                                audits.--An agreement to maintain such 
                                records, submit such reports, and 
                                cooperate with such reviews and audits 
                                as the Secretary finds necessary for 
                                purposes of oversight of the 
                                demonstration program.
                            ```(iii) Certifications.--The following 
                        certifications from the chief executive officer 
                        of the State:
                                    ```(I) A certification that the 
                                State will use funds provided under the 
                                grant to promote at least 2 of the 
                                purposes described in paragraph (2).
                                    ```(II) A certification that the 
                                State will return any unused funds to 
                                the Secretary in accordance with the 
                                reconciliation process under paragraph 
                                (5).
                                    ```(III) A certification that the 
                                funds provided under the grant will be 
                                used for programs and activities that 
                                target low-income participants and that 
                                not less than 50 percent of the 
                                participants in each program or 
                                activity funded under the grant shall 
                                be--
                                            ```(aa) parents of a child 
                                        who is, or within the past 24 
                                        months has been, a recipient of 
                                        assistance or services under a 
                                        State program funded under part 
                                        A, D, or E of this title, title 
                                        XIX, or the Food Stamp Act of 
                                        1977; or
                                            ```(bb) parents, including 
                                        an expectant parent or a 
                                        married parent, whose income 
                                        (after adjustment for court-
                                        ordered child support paid or 
                                        received) does not exceed 150 
                                        percent of the poverty line.
                                    ```(IV) A certification that the 
                                State has or will comply with the 
                                requirements of paragraph (4).
                                    ```(V) A certification that funds 
                                provided to a State under this 
                                subsection shall not be used to 
                                supplement or supplant other Federal, 
                                State, or local funds that are used to 
                                support programs or activities that are 
                                related to the purposes described in 
                                paragraph (2).
                    ```(C) Preferences and factors of consideration.--
                In awarding grants under this subsection, the Secretary 
                shall take into consideration the following:
                            ```(i) Diversity of entities used to 
                        conduct programs and activities.--The Secretary 
                        shall, to the extent practicable, achieve a 
                        balance among the eligible States awarded 
                        grants under this subsection with respect to 
                        the size, urban or rural location, and 
                        employment of differing or unique methods of 
                        the entities that the eligible States intend to 
                        use to conduct the programs and activities 
                        funded under the grants.
                            ```(ii) Priority for certain states.--The 
                        Secretary shall give priority to awarding 
                        grants to eligible States that have--
                                    ```(I) demonstrated progress in 
                                achieving at least 1 of the purposes 
                                described in paragraph (2) through 
                                previous State initiatives; or
                                    ```(II) demonstrated need with 
                                respect to reducing the incidence of 
                                out-of-wedlock births or absent fathers 
                                in the State.
            ```(2) Purposes.--The purposes described in this paragraph 
        are the following:
                    ```(A) Promoting responsible fatherhood through 
                marriage promotion.--To promote marriage or sustain 
                marriage through activities such as counseling, 
                mentoring, disseminating information about the benefits 
                of marriage and 2-parent involvement for children, 
                enhancing relationship skills, education regarding how 
                to control aggressive behavior, disseminating 
                information on the causes of domestic violence and 
                child abuse, marriage preparation programs, premarital 
                counseling, marital inventories, skills-based marriage 
                education, financial planning seminars, including 
                improving a family's ability to effectively manage 
                family business affairs by means such as education, 
                counseling, or mentoring on matters related to family 
                finances, including household management, budgeting, 
                banking, and handling of financial transactions and 
                home maintenance, and divorce education and reduction 
                programs, including mediation and counseling.
                    ```(B) Promoting responsible fatherhood through 
                parenting promotion.--To promote responsible parenting 
                through activities such as counseling, mentoring, and 
                mediation, disseminating information about good 
                parenting practices, skills-based parenting education, 
                encouraging child support payments, and other methods.
                    ```(C) Promoting responsible fatherhood through 
                fostering economic stability of fathers.--To foster 
                economic stability by helping fathers improve their 
                economic status by providing activities such as work 
                first services, job search, job training, subsidized 
                employment, job retention, job enhancement, and 
                encouraging education, including career-advancing 
                education, dissemination of employment materials, 
                coordination with existing employment services such as 
                welfare-to-work programs, referrals to local employment 
                training initiatives, and other methods.
            ```(3) Restriction on use of funds.--No funds provided 
        under this subsection may be used for costs attributable to 
        court proceedings regarding matters of child visitation or 
        custody, or for legislative advocacy.
            ```(4) Requirements for receipt of funds.--A State may not 
        be awarded a grant under this section unless the State, as a 
        condition of receiving funds under such a grant--
                    ```(A) consults with experts in domestic violence 
                or with relevant community domestic violence coalitions 
                in developing such programs or activities; and
                    ```(B) describes in the application for a grant 
                under this section--
                            ```(i) how the programs or activities 
                        proposed to be conducted will address, as 
                        appropriate, issues of domestic violence; and
                            ```(ii) what the State will do, to the 
                        extent relevant, to ensure that participation 
                        in such programs or activities is voluntary, 
                        and to inform potential participants that their 
                        involvement is voluntary.
            ```(5) Reconciliation process.--
                    ```(A) 3-year availability of amounts allotted.--
                Each eligible State that receives a grant under this 
                subsection for a fiscal year shall return to the 
                Secretary any unused portion of the grant for such 
                fiscal year not later than the last day of the second 
                succeeding fiscal year, together with any earnings on 
                such unused portion.
                    ```(B) Procedure for redistribution.--The Secretary 
                shall establish an appropriate procedure for 
                redistributing to eligible States that have expended 
                the entire amount of a grant made under this subsection 
                for a fiscal year any amount that is returned to the 
                Secretary by eligible States under subparagraph (A).
            ```(6) Amount of grants.--
                    ```(A) In general.--Subject to subparagraph (B), 
                the amount of each grant awarded under this subsection 
                shall be an amount sufficient to implement the State 
                plan submitted under paragraph (1)(B)(ii).
                    ```(B) Minimum amounts.--No eligible State shall--
                            ```(i) in the case of the District of 
                        Columbia or a State other than the Commonwealth 
                        of Puerto Rico, the United States Virgin 
                        Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana Islands, 
                        receive a grant for a fiscal year in an amount 
                        that is less than $1,000,000; and
                            ```(ii) in the case of the Commonwealth of 
                        Puerto Rico, the United States Virgin Islands, 
                        Guam, American Samoa, and the Commonwealth of 
                        the Northern Mariana Islands, receive a grant 
                        for a fiscal year in an amount that is less 
                        than $500,000.
            ```(7) Definition of state.--In this subsection, the term 
        `State' means each of the 50 States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands.
            ```(8) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated for each of fiscal years 2006 through 2010, 
        $20,000,000 for purposes of making grants to eligible States 
        under this subsection.
    ```(b) Grants to Eligible Entities To Conduct Demonstration 
Programs.--
            ```(1) Authority to award grants.--
                    ```(A) In general.--The Secretary shall award 
                grants to eligible entities to conduct demonstration 
                programs to carry out the purposes described in 
                subsection (a)(2).
                    ```(B) Eligible entity.--For purposes of this 
                subsection, an eligible entity is a local government, 
                local public agency, community-based or nonprofit 
                organization, or private entity, including any 
                charitable or faith-based organization, or an Indian 
                tribe or tribal organization (as defined in section 
                419(4)), that submits to the Secretary the following:
                            ```(i) Application.--An application for a 
                        grant under this subsection, at such time, in 
                        such manner, and containing such information as 
                        the Secretary may require.
                            ```(ii) Project description.--A description 
                        of the programs or activities the entity 
                        intends to carry out with funds provided under 
                        the grant, including a good faith estimate of 
                        the number and characteristics of clients to be 
                        served under such programs or activities and 
                        how the entity intends to achieve at least 2 of 
                        the purposes described in subsection (a)(2).
                            ```(iii) Coordination efforts.--A 
                        description of how the entity will coordinate 
                        and cooperate with State and local entities 
                        responsible for carrying out other programs 
                        that relate to the purposes intended to be 
                        achieved under the demonstration program, 
                        including as appropriate, entities responsible 
                        for carrying out jobs programs and programs 
                        serving children and families.
                            ```(iv) Records, reports, and audits.--An 
                        agreement to maintain such records, submit such 
                        reports, and cooperate with such reviews and 
                        audits as the Secretary finds necessary for 
                        purposes of oversight of the demonstration 
                        program.
                            ```(v) Certifications.--The following 
                        certifications:
                                    ```(I) A certification that the 
                                entity will use funds provided under 
                                the grant to promote at least 2 of the 
                                purposes described in subsection 
                                (a)(2).
                                    ```(II) A certification that the 
                                entity will return any unused funds to 
                                the Secretary in accordance with the 
                                reconciliation process under paragraph 
                                (3).
                                    ```(III) A certification that the 
                                funds provided under the grant will be 
                                used for programs and activities that 
                                target low-income participants and that 
                                not less than 50 percent of the 
                                participants in each program or 
                                activity funded under the grant shall 
                                be--
                                            ```(aa) parents of a child 
                                        who is, or within the past 24 
                                        months has been, a recipient of 
                                        assistance or services under a 
                                        State program funded under part 
                                        A, D, or E of this title, title 
                                        XIX, or the Food Stamp Act of 
                                        1977; or
                                            ```(bb) parents, including 
                                        an expectant parent or a 
                                        married parent, whose income 
                                        (after adjustment for court-
                                        ordered child support paid or 
                                        received) does not exceed 150 
                                        percent of the poverty line.
                                    ```(IV) A certification that the 
                                entity has or will comply with the 
                                requirements of paragraph (3).
                                    ```(V) A certification that funds 
                                provided to an entity under this 
                                subsection shall not be used to 
                                supplement or supplant other Federal, 
                                State, or local funds provided to the 
                                entity that are used to support 
                                programs or activities that are related 
                                to the purposes described in subsection 
                                (a)(2).
                    ```(C) Preferences and factors of consideration.--
                In awarding grants under this subsection, the Secretary 
                shall, to the extent practicable, achieve a balance 
                among the eligible entities awarded grants under this 
                subsection with respect to the size, urban or rural 
                location, and employment of differing or unique methods 
                of the entities.
            ```(2) Restriction on use of funds.--No funds provided 
        under this subsection may be used for costs attributable to 
        court proceedings regarding matters of child visitation or 
        custody, or for legislative advocacy.
            ```(3) Requirements for use of funds.--The Secretary may 
        not award a grant under this subsection to an eligible entity 
        unless the entity, as a condition of receiving funds under such 
        a grant--
                    ```(A) consults with experts in domestic violence 
                or with relevant community domestic violence coalitions 
                in developing the programs or activities to be 
                conducted with such funds awarded under the grant; and
                    ```(B) describes in the application for a grant 
                under this section--
                            ```(i) how the programs or activities 
                        proposed to be conducted will address, as 
                        appropriate, issues of domestic violence; and
                            ```(ii) what the entity will do, to the 
                        extent relevant, to ensure that participation 
                        in such programs or activities is voluntary, 
                        and to inform potential participants that their 
                        involvement is voluntary.
            ```(4) Reconciliation process.--
                    ```(A) 3-year availability of amounts allotted.--
                Each eligible entity that receives a grant under this 
                subsection for a fiscal year shall return to the 
                Secretary any unused portion of the grant for such 
                fiscal year not later than the last day of the second 
                succeeding fiscal year, together with any earnings on 
                such unused portion.
                    ```(B) Procedure for redistribution.--The Secretary 
                shall establish an appropriate procedure for 
                redistributing to eligible entities that have expended 
                the entire amount of a grant made under this subsection 
                for a fiscal year any amount that is returned to the 
                Secretary by eligible entities under subparagraph (A).
            ```(5) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there are 
        appropriated for each of fiscal years 2006 through 2010, 
        $30,000,000 for purposes of making grants to eligible entities 
        under this subsection.

```SEC. 442. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD 
              PROGRAMS.

    ```(a) Media Campaign National Clearinghouse for Responsible 
Fatherhood.--
            ```(1) In general.--From any funds appropriated under 
        subsection (c), the Secretary shall contract with a nationally 
        recognized, nonprofit fatherhood promotion organization 
        described in subsection (b) to--
                    ```(A) develop, promote, and distribute to 
                interested States, local governments, public agencies, 
                and private entities a media campaign that encourages 
                the appropriate involvement of parents in the life of 
                any child, with a priority for programs that 
                specifically address the issue of responsible 
                fatherhood; and
                    ```(B) develop a national clearinghouse to assist 
                States and communities in efforts to promote and 
                support marriage and responsible fatherhood by 
                collecting, evaluating, and making available (through 
                the Internet and by other means) to other States 
                information regarding the media campaigns established 
                under section 443.
            ```(2) Coordination with domestic violence programs.--The 
        Secretary shall ensure that the nationally recognized nonprofit 
        fatherhood promotion organization with a contract under 
        paragraph (1) coordinates the media campaign developed under 
        subparagraph (A) of such paragraph and the national 
        clearinghouse developed under subparagraph (B) of such 
        paragraph with national, State, or local domestic violence 
        programs.
    ```(b) Nationally Recognized, Nonprofit Fatherhood Promotion 
Organization Described.--The nationally recognized, nonprofit 
fatherhood promotion organization described in this subsection is an 
organization that has at least 4 years of experience in--
            ```(1) designing and disseminating a national public 
        education campaign, as evidenced by the production and 
        successful placement of television, radio, and print public 
        service announcements that promote the importance of 
        responsible fatherhood, a track record of service to Spanish-
        speaking populations and historically underserved or minority 
        populations, the capacity to fulfill requests for information 
        and a proven history of fulfilling such requests, and a 
        mechanism through which the public can request additional 
        information about the campaign; and
            ```(2) providing consultation and training to community-
        based organizations interested in implementing fatherhood 
        outreach, support, or skill development programs with an 
        emphasis on promoting married fatherhood as the ideal.
    ```(c) Authorization of Appropriations.--There is authorized to be 
appropriated $5,000,000 for each of fiscal years 2006 through 2010 to 
carry out this section.

```SEC. 443. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.

    ```(a) Definitions.--In this section:
            ```(1) Broadcast advertisement.--The term `broadcast 
        advertisement' means a communication intended to be aired by a 
        television or radio broadcast station, including a 
        communication intended to be transmitted through a cable 
        channel.
            ```(2) Child at risk.--The term `child at risk' means each 
        young child whose family income does not exceed the poverty 
        line.
            ```(3) Poverty line.--The term `poverty line' has the 
        meaning given such term in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)), including any 
        revision required by such section, that is applicable to a 
        family of the size involved.
            ```(4) Printed or other advertisement.--The term `printed 
        or other advertisement' includes any communication intended to 
        be distributed through a newspaper, magazine, outdoor 
        advertising facility, mailing, or any other type of general 
        public advertising, but does not include any broadcast 
        advertisement.
            ```(5) State.--The term `State' means each of the 50 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands.
            ```(6) Young child.--The term `young child' means an 
        individual under age 5.
    ```(b) State Certifications.--Not later than October 1 of each of 
fiscal year for which a State desires to receive an allotment under 
this section, the chief executive officer of the State shall submit to 
the Secretary a certification that the State shall--
            ```(1) use such funds to promote the formation and 
        maintenance of healthy 2-parent married families, strengthen 
        fragile families, and promote responsible fatherhood through 
        media campaigns conducted in accordance with the requirements 
        of subsection (d);
            ```(2) return any unused funds to the Secretary in 
        accordance with the reconciliation process under subsection 
        (e); and
            ```(3) comply with the reporting requirements under 
        subsection (f).
    ```(c) Payments to States.--For each of fiscal years 2006 through 
2010, the Secretary shall pay to each State that submits a 
certification under subsection (b), from any funds appropriated under 
subsection (i), for the fiscal year an amount equal to the amount of 
the allotment determined for the fiscal year under subsection (g).
    ```(d) Establishment of Media Campaigns.--Each State receiving an 
allotment under this section for a fiscal year shall use the allotment 
to conduct media campaigns as follows:
            ```(1) Conduct of media campaigns.--
                    ```(A) Radio and television media campaigns.--
                            ```(i) Production of broadcast 
                        advertisements.--At the option of the State, to 
                        produce broadcast advertisements that promote 
                        the formation and maintenance of healthy 2-
                        parent married families, strengthen fragile 
                        families, and promote responsible fatherhood.
                            ```(ii) Airtime challenge program.--At the 
                        option of the State, to establish an airtime 
                        challenge program under which the State may 
                        spend amounts allotted under this section to 
                        purchase time from a broadcast station to air a 
                        broadcast advertisement produced under clause 
                        (i), but only if the State obtains an amount of 
                        time of the same class and during a comparable 
                        period to air the advertisement using non-
                        Federal contributions.
                    ```(B) Other media campaigns.--At the option of the 
                State, to conduct a media campaign that consists of the 
                production and distribution of printed or other 
                advertisements that promote the formation and 
                maintenance of healthy 2-parent married families, 
                strengthen fragile families, and promote responsible 
                fatherhood.
            ```(2) Administration of media campaigns.--A State may 
        administer media campaigns funded under this section directly 
        or through grants, contracts, or cooperative agreements with 
        public agencies, local governments, or private entities, 
        including charitable and faith-based organizations.
            ```(3) Consultation with domestic violence assistance 
        centers.--In developing broadcast and printed advertisements to 
        be used in the media campaigns conducted under paragraph (1), 
        the State or other entity administering the campaign shall 
        consult with representatives of State and local domestic 
        violence centers.
            ```(4) Non-federal contributions.--In this section, the 
        term `non-Federal contributions' includes contributions by the 
        State and by public and private entities. Such contributions 
        may be in cash or in kind. Such term does not include any 
        amounts provided by the Federal Government, or services 
        assisted or subsidized to any significant extent by the Federal 
        Government, or any amount expended by a State before October 1, 
        2005.
    ```(e) Reconciliation Process.--
            ```(1) 3-year availability of amounts allotted.--Each State 
        that receives an allotment under this section shall return to 
        the Secretary any unused portion of the amount allotted to a 
        State for a fiscal year not later than the last day of the 
        second succeeding fiscal year together with any earnings on 
        such unused portion.
            ```(2) Procedure for redistribution of unused allotments.--
        The Secretary shall establish an appropriate procedure for 
        redistributing to States that have expended the entire amount 
        allotted under this section any amount that is--
                    ```(A) returned to the Secretary by States under 
                paragraph (1); or
                    ```(B) not allotted to a State under this section 
                because the State did not submit a certification under 
                subsection (b) by October 1 of a fiscal year.
    ```(f) Reporting Requirements.--
            ```(1) Monitoring and evaluation.--Each State receiving an 
        allotment under this section for a fiscal year shall monitor 
        and evaluate the media campaigns conducted using funds made 
        available under this section in such manner as the Secretary, 
        in consultation with the States, determines appropriate.
            ```(2) Annual reports.--Not less frequently than annually, 
        each State receiving an allotment under this section for a 
        fiscal year shall submit to the Secretary reports on the media 
        campaigns conducted using funds made available under this 
        section at such time, in such manner, and containing such 
        information as the Secretary may require.
    ```(g) Amount of Allotments.--
            ```(1) In general.--Except as provided in paragraph (2), of 
        the amount appropriated for the purpose of making allotments 
        under this section for a fiscal year, the Secretary shall allot 
        to each State that submits a certification under subsection (b) 
        for the fiscal year an amount equal to the sum of--
                    ```(A) the amount that bears the same ratio to 50 
                percent of such funds as the number of young children 
                in the State (as determined by the Secretary based on 
                the most current reliable data available) bears to the 
                number of such children in all States; and
                    ```(B) the amount that bears the same ratio to 50 
                percent of such funds as the number of children at risk 
                in the State (as determined by the Secretary based on 
                the most current reliable data available) bears to the 
                number of such children in all States.
            ```(2) Minimum allotments.--No allotment for a fiscal year 
        under this section shall be less than--
                    ```(A) in the case of the District of Columbia or a 
                State other than the Commonwealth of Puerto Rico, the 
                United States Virgin Islands, Guam, American Samoa, and 
                the Commonwealth of the Northern Mariana Islands, 1 
                percent of the amount appropriated for the fiscal year 
                under subsection (i); and
                    ```(B) in the case of the Commonwealth of Puerto 
                Rico, the United States Virgin Islands, Guam, American 
                Samoa, and the Commonwealth of the Northern Mariana 
                Islands, 0.5 percent of such amount.
            ```(3) Pro rata reductions.--The Secretary shall make such 
        pro rata reductions to the allotments determined under this 
        subsection as are necessary to comply with the requirements of 
        paragraph (2).
    ```(h) Evaluation.--
            ```(1) In general.--The Secretary shall conduct an 
        evaluation of the impact of the media campaigns funded under 
        this section.
            ```(2) Report.--Not later than December 31, 2008, the 
        Secretary shall report to Congress the results of the 
        evaluation under paragraph (1).
            ```(3) Funding.--Of the amount appropriated under 
        subsection (i) for fiscal year 2006, $1,000,000 of such amount 
        shall be transferred and made available for purposes of 
        conducting the evaluation required under this subsection, and 
        shall remain available until expended.
    ```(i) Authorization of Appropriations.--There is authorized to be 
appropriated $20,000,000 for each of fiscal years 2006 through 2010 for 
purposes of making allotments to States under this section.

```SEC. 444. NATIONAL RESOURCE CENTER FOR RESPONSIBLE FATHERHOOD

    ```(a) In General.--The Secretary shall contract with a nationally 
recognized, nonprofit research and education fatherhood organization 
described in subsection (b) to--
          ```(1) provide technical assistance and training to public 
        and private agencies and grass roots organizations that promote 
        responsible fatherhood and healthy marriage; and
            ```(2) develop a clearinghouse of resource materials to 
        assist community-based organizations in developing local 
        responsible fatherhood programs, with an emphasis on training 
        and outcome evaluation.
    ```(b) Nationally Recognized Nonprofit Research and Education 
Fatherhood Organization Described.--A nationally recognized nonprofit 
research and education fatherhood organization described in this 
subsection is an organization that has been in existence for at least 
12 years with experience in--
            ```(1) developing and distributing research-based 
        curriculum that promotes responsible fatherhood and healthy 
        marriage with an emphasis on low-income and noncustodial 
        fathers;
            ```(2) providing consultation and training to community-
        based organizations with a track record of working with social 
        service, government, and faith-based organizations; and
            ```(3) providing direct training to fathers, father 
        figures, and mothers using research-based curriculum in a 
        variety of economic, cultural and family situations.
    ```(c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section, $1,000,000 for 
each of fiscal years 2006 through 2010.

```SEC. 445. NONDISCRIMINATION.

    ```The projects and activities assisted under this part shall be 
available on the same basis to all fathers and expectant fathers able 
to benefit from such projects and activities, including married and 
unmarried fathers and custodial and noncustodial fathers, with 
particular attention to low-income fathers, and to mothers and 
expectant mothers on the same basis as to fathers.'.
    ``(b) Inapplicability of Effective Date Provisions.--Section 116 
shall not apply to the amendment made by subsection (a) of this 
section.''.
    (b) Clerical Amendment.--Section 2 of such Act is amended in the 
table of contents by inserting after the item relating to section 116 
the following new item:

``Sec. 117. Responsible fatherhood program.''.

SEC. 119. ADDITIONAL GRANTS.

    (a) Grants To Capitalize and Develop Sustainable Social Services.--
Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end the 
following:
            ``(6) Grants to capitalize and develop sustainable social 
        services.--
                    ``(A) Authority to award grants.--The Secretary may 
                award grants to entities for the purpose of 
                capitalizing and developing the role of sustainable 
                social services that are critical to the success of 
                moving recipients of assistance under a State program 
                funded under this part to work.
                    ``(B) Application.--
                            ``(i) In general.--An entity desiring a 
                        grant under this paragraph shall submit an 
                        application to the Secretary, at such time, in 
                        such manner, and, subject to clause (ii), 
                        containing such information as the Secretary 
                        may require.
                            ``(ii) Strategy for generation of 
                        revenue.--An application for a grant under this 
                        paragraph shall include a description of the 
                        capitalization strategy that the entity intends 
                        to follow to develop a program that generates 
                        its own source of ongoing revenue while 
                        assisting recipients of assistance under a 
                        State program funded under this part.
                    ``(C) Use of funds.--
                            ``(i) In general.--Funds made available 
                        under a grant made under this paragraph may be 
                        used for the acquisition, construction, or 
                        renovation of facilities or buildings.
                            ``(ii) General rules governing use of 
                        funds.--The rules of section 404, other than 
                        subsection (b) of that section, shall not apply 
                        to a grant made under this paragraph.
                    ``(D) Evaluation and report.--The Secretary shall, 
                by grant, contract, or interagency agreement, conduct 
                an evaluation of the programs developed with grants 
                awarded under this paragraph and shall submit a report 
                to Congress on the results of such evaluation.
                    ``(E) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary for the 
                purpose of carrying out this paragraph, $40,000,000 for 
                each of fiscal years 2006 through 2010.''.
    (b) Grants for Low-Income Car Ownership Programs.--Section 403(a) 
(42 U.S.C. 603(a)), as amended by subsection (a), is further amended by 
adding at the end the following:
            ``(7) Grants for low-income car ownership programs.--
                    ``(A) Purposes.--The purposes of this paragraph are 
                to--
                            ``(i) assist low-income families with 
                        children obtain dependable, affordable 
                        automobiles to improve their employment 
                        opportunities and access to training; and
                            ``(ii) provide incentives to States, Indian 
                        tribes or tribal organizations, localities, and 
                        nonprofit entities to develop and administer 
                        programs that provide assistance with 
                        automobile ownership for low-income families.
                    ``(B) Definitions.--In this paragraph:
                            ``(i) Locality.--The term `locality' means 
                        a municipality that does not administer a State 
                        program funded under this part.
                            ``(ii) Low-income family with children.--
                        The term `low-income family with children' 
                        means a household that is eligible for benefits 
                        or services funded under the State program 
                        funded under this part or under a program 
                        funded with qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i)).
                            ``(iii) Nonprofit entity.--The term 
                        `nonprofit entity' means a school, local 
                        agency, organization, or institution owned and 
                        operated by 1 or more nonprofit corporations or 
                        associations, no part of the net earnings of 
                        which inures, or may lawfully inure, to the 
                        benefit of any private shareholder or 
                        individual.
                    ``(C) Authority to award grants.--The Secretary may 
                award grants to States, counties, localities, Indian 
                tribes or tribal organizations, and nonprofit entities 
                to promote improving access to dependable, affordable 
                automobiles by low-income families with children.
                    ``(D) Grant approval criteria.--The Secretary shall 
                establish criteria for approval of an application for a 
                grant under this paragraph that include consideration 
                of--
                            ``(i) the extent to which the proposal, if 
                        funded, is likely to improve access to training 
                        and employment opportunities and child care 
                        services by low-income families with children 
                        by means of car ownership;
                            ``(ii) the level of innovation in the 
                        applicant's grant proposal; and
                            ``(iii) any partnerships between the public 
                        and private sector in the applicant's grant 
                        proposal.
                    ``(E) Use of funds.--
                            ``(i) In general.--A grant awarded under 
                        this paragraph shall be used to administer 
                        programs that assist low-income families with 
                        children with dependable automobile ownership, 
                        and maintenance of, or insurance for, the 
                        purchased automobile.
                            ``(ii) Supplement not supplant.--Funds 
                        provided to a State, Indian tribe or tribal 
                        organization, county, or locality under a grant 
                        awarded under this paragraph shall be used to 
                        supplement and not supplant other State, 
                        county, or local public funds expended for car 
                        ownership programs.
                            ``(iii) General rules governing use of 
                        funds.--The rules of section 404, other than 
                        subsection (b) of that section, shall not apply 
                        to a grant made under this paragraph.
                    ``(F) Application.--Each applicant desiring a grant 
                under this paragraph shall submit an application to the 
                Secretary at such time, in such manner, and accompanied 
                by such information as the Secretary may reasonably 
                require.
                    ``(G) Reversion of funds.--Any funds not expended 
                by a grantee within 3 years after the date the grant is 
                awarded under this paragraph shall be available for 
                redistribution among other grantees in such manner and 
                amount as the Secretary may determine, unless the 
                Secretary extends by regulation the time period to 
                expend such funds.
                    ``(H) Limitation on administrative costs of the 
                secretary.--Not more than an amount equal to 5 percent 
                of the funds appropriated to make grants under this 
                paragraph for a fiscal year shall be expended for 
                administrative costs of the Secretary in carrying out 
                this paragraph.
                    ``(I) Evaluation.--The Secretary shall, by grant, 
                contract, or interagency agreement, conduct an 
                evaluation of the programs administered with grants 
                awarded under this paragraph.
                    ``(J) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary to make 
                grants under this paragraph, $25,000,000 for each of 
                fiscal years 2006 through 2010.''.
    (c) Transitional Jobs Grants.--
            (1) In general.--Section 403(a) (42 U.S.C. 603(a)), as 
        amended by subsection (b), is further amended by adding at the 
        end the following:
            ``(8) Innovative business link partnership grants.--
                    ``(A) In general.--The Secretary and the Secretary 
                of Labor (in this paragraph referred to as the 
                `Secretaries') jointly shall award grants in accordance 
                with this paragraph for projects proposed by eligible 
                applicants based on the following:
                            ``(i) The potential effectiveness of the 
                        proposed project in carrying out the activities 
                        described in subparagraph (E).
                            ``(ii) Evidence of the ability of the 
                        eligible applicant to leverage private, State, 
                        or local resources.
                            ``(iii) Evidence of the ability of the 
                        eligible applicant to coordinate with other 
                        organizations at the State or local level.
                    ``(B) Definition of eligible applicant.--
                            ``(i) In general.--In this paragraph, the 
                        term `eligible applicant' means a private 
                        organization, a local workforce investment 
                        board established under section 117 of the 
                        Workforce Investment Act of 1998 (29 U.S.C. 
                        2832), a State, a political subdivision of a 
                        State, or an Indian tribe or tribal 
                        organization.
                            ``(ii) Grants to promote business 
                        linkages.--
                                    ``(I) Additional eligible 
                                applicant.--Only for purposes of grants 
                                to carry out the activities described 
                                in subparagraph (E)(i), the term 
                                `eligible applicant' includes an 
                                employer.
                                    ``(II) Additional requirement.--In 
                                order to qualify as an eligible 
                                applicant for purposes of subparagraph 
                                (E)(i), the applicant must demonstrate 
                                that the application has been developed 
                                by and will be implemented by a local 
                                or regional consortium that includes, 
                                at minimum, employers or employer 
                                associations, and education and 
                                training providers, in consultation 
                                with local labor organizations and 
                                social service providers that work with 
                                low-income families or individuals with 
                                disabilities.
                    ``(C) Requirements.--
                            ``(i) In general.--In awarding grants under 
                        this paragraph, the Secretaries shall--
                                    ``(I) consider the needs of rural 
                                areas and cities with large 
                                concentrations of residents with an 
                                income that is less than 150 percent of 
                                the poverty line; and
                                    ``(II) ensure that--
                                            ``(aa) all of the funds 
                                        made available under this 
                                        paragraph (other than funds 
                                        reserved for use by the 
                                        Secretaries under subparagraph 
                                        (J)) shall be used for 
                                        activities described in 
                                        subparagraph (E);
                                            ``(bb) not less than 40 
                                        percent of the funds made 
                                        available under this paragraph 
                                        (other than funds so reserved) 
                                        shall be used for activities 
                                        described in subparagraph 
                                        (E)(i); and
                                            ``(cc) not less than 40 
                                        percent of the funds made 
                                        available under this paragraph 
                                        (other than funds so reserved) 
                                        shall be used for the 
                                        activities described in 
                                        subparagraph (E)(ii).
                            ``(ii) Continuation of availability.--If 
                        any portion of the funds required to be used 
                        for activities referred to in item (bb) or (cc) 
                        of clause (i)(II) are not awarded in a fiscal 
                        year, such portion shall continue to be 
                        available in the subsequent fiscal year for the 
                        same activity, in addition to other amounts 
                        that may be available for such activities for 
                        that subsequent fiscal year.
                    ``(D) Determination of grant amount.--
                            ``(i) In general.--Subject to clause (ii), 
                        in determining the amount of a grant to be 
                        awarded under this paragraph for a project 
                        proposed by an eligible applicant, the 
                        Secretaries shall take into account--
                                    ``(I) the number and 
                                characteristics of the individuals to 
                                be served by the project;
                                    ``(II) the level of unemployment in 
                                the area to be served by the project;
                                    ``(III) the job opportunities and 
                                job growth in such area;
                                    ``(IV) the poverty rate for such 
                                area; and
                                    ``(V) such other factors as the 
                                Secretary deems appropriate in such 
                                area.
                            ``(ii) Maximum award for grants to promote 
                        business linkages or provide transitional jobs 
                        programs.--
                                    ``(I) In general.--In the case of a 
                                grant to carry out activities described 
                                in clause (i) or (ii) of subparagraph 
                                (E), an eligible applicant awarded a 
                                grant under this paragraph may not 
                                receive more than $10,000,000 per 
                                fiscal year under the grant.
                                    ``(II) Rule of construction.--
                                Nothing in subclause (I) shall be 
                                construed as precluding an otherwise 
                                eligible applicant from receiving 
                                separate grants to carry out activities 
                                described in clause (i) or (ii) of 
                                subparagraph (E).
                            ``(iii) Grant period.--The period in which 
                        a grant awarded under this paragraph may be 
                        used shall be specified for a period of not 
                        less than 36 months and not more than 60 
                        months.
                    ``(E) Allowable activities.--An eligible applicant 
                awarded a grant under this paragraph shall use funds 
                provided under the grant to do the following:
                            ``(i) Promote business linkages.--
                                    ``(I) In general.--To promote 
                                business linkages in which funds shall 
                                be used to fund new or expanded 
                                programs that are designed to--
                                            ``(aa) substantially 
                                        increase the wages of eligible 
                                        individuals (as defined in 
                                        subparagraph (F)), whether 
                                        employed or unemployed, who 
                                        have limited English 
                                        proficiency or other barriers 
                                        to employment by creating or 
                                        upgrading job and related 
                                        skills in partnership with 
                                        employers, especially by 
                                        providing supports and services 
                                        at or near worksites; and
                                            ``(bb) identify and 
                                        strengthen career pathways by 
                                        expanding and linking work and 
                                        training opportunities for such 
                                        individuals in collaboration 
                                        with employers.
                                    ``(II) Consideration of in-kind, 
                                in-cash resources.--In determining 
                                which programs to fund under this 
                                clause, an eligible applicant awarded a 
                                grant under this paragraph shall 
                                consider the ability of a consortium to 
                                provide funds in-kind or in-cash 
                                (including employer-provided, paid 
                                release time) to help support the 
                                programs for which funding is sought.
                                    ``(III) Priority.--In determining 
                                which programs to fund under this 
                                clause, an eligible applicant awarded a 
                                grant under this paragraph shall give 
                                priority to programs that include 
                                education or training for which 
                                participants receive credit toward a 
                                recognized credential, such as an 
                                occupational certificate or license.
                                    ``(IV) Use of funds.--
                                            ``(aa) In general.--Funds 
                                        provided to a program under 
                                        this clause may be used for a 
                                        comprehensive set of employment 
                                        and training benefits and 
                                        services, including job 
                                        development, job placement, 
                                        workplace supports and 
                                        accommodations, curricula 
                                        development, wage subsidies, 
                                        retention services, and such 
                                        other benefits or services as 
                                        the program deems necessary to 
                                        achieve the overall objectives 
                                        of this clause.
                                            ``(bb) Provision of 
                                        services.--So long as a program 
                                        is principally designed to 
                                        assist eligible individuals (as 
                                        defined in subparagraph (F)), 
                                        funds may be provided to a 
                                        program under this clause that 
                                        also serves low-earning 
                                        employees of 1 or more 
                                        employers even if such 
                                        individuals are not within the 
                                        definition of eligible 
                                        individual (as so defined).
                            ``(ii) Provide for transitional jobs 
                        programs.--
                                    ``(I) In general.--To provide for 
                                wage-paying transitional jobs programs 
                                which combine time-limited employment 
                                in the public or nonprofit private 
                                sector that is subsidized with public 
                                funds with skill development and 
                                activities to remove barriers to 
                                employment, pursuant to an 
                                individualized plan (or, in the case of 
                                an eligible individual described in 
                                subparagraph (F)(i), an individual 
                                responsibility plan developed for an 
                                individual under section 408(b)). Such 
                                programs also shall provide job 
                                development and placement assistance to 
                                individual participants to help them 
                                move from subsidized employment in 
                                transitional jobs into unsubsidized 
                                employment, as well as retention 
                                services after the transition to 
                                unsubsidized employment.
                                    ``(II) Eligible participants.--The 
                                Secretary shall ensure that individuals 
                                who participate in transitional jobs 
                                programs funded under a grant made 
                                under this paragraph shall be 
                                individuals who have been unemployed 
                                because of limited skills, experience, 
                                or other barriers to employment, and 
                                who are eligible individuals (as 
                                defined in subparagraph (F)), provided 
                                that so long as a program is designed 
                                to, and principally serves, eligible 
                                individuals (as so defined), a limited 
                                number of individuals who are 
                                unemployed because of limited skills, 
                                experience, or other barriers to 
                                employment, and who have an income 
                                below 100 percent of the Federal 
                                poverty line but who do not satisfy the 
                                definition of eligible individual (as 
                                so defined) may be served in the 
                                program to the extent the Secretaries 
                                determine that the inclusion of such 
                                individuals in the program is 
                                appropriate.
                                    ``(III) Use of funds.--Funds 
                                provided to a program under this clause 
                                may only be used in accordance with the 
                                following:
                                            ``(aa) To create subsidized 
                                        transitional jobs in which work 
                                        shall be performed directly for 
                                        the program operator or at 
                                        other public and nonprofit 
                                        organizations (in this 
                                        subclause referred to as 
                                        `worksite employers') in the 
                                        community, and in which 100 
                                        percent of the wages shall be 
                                        subsidized, except as described 
                                        in item (ff) regarding 
                                        placements in the private, for-
                                        profit sector.
                                            ``(bb) Participants shall 
                                        be paid at the rate paid to 
                                        unsubsidized employees of the 
                                        worksite employer who perform 
                                        comparable work at the worksite 
                                        where the individual is placed. 
                                        If no other employees perform 
                                        the same or comparable work 
                                        then wages shall be set, at a 
                                        minimum, at 50 percent of the 
                                        Lower Living Standard Income 
                                        Level (commonly referred to as 
                                        the `LLSIL'), as determined 
                                        under section 101(24) of the 
                                        Workforce Investment Act of 
                                        1998 (29 U.S.C. 2801(24)), for 
                                        a family of 3 based on 35 hours 
                                        per week.
                                            ``(cc) Transitional jobs 
                                        shall be limited to not less 
                                        than 6 months and not more than 
                                        24 months, however, nothing 
                                        shall preclude a participant 
                                        from moving into unsubsidized 
                                        employment at a point prior to 
                                        the maximum duration of the 
                                        transitional job placement. 
                                        Participants shall be paid 
                                        wages based on a workweek of 
                                        not less than 30 hours per week 
                                        or more than 40 hours per week, 
                                        except that a parent of a child 
                                        under the age of 6, a child who 
                                        is disabled, or a child with 
                                        other special needs, or an 
                                        individual who for other 
                                        reasons cannot successfully 
                                        participate for 30 to 40 hours 
                                        per week, may be allowed to 
                                        participate for more limited 
                                        hours, but not less than 20 
                                        hours per week. In any work 
                                        week, 50 percent to 80 percent 
                                        of hours shall be spent in the 
                                        transitional job and 20 percent 
                                        to 50 percent of hours shall be 
                                        spent in education or training, 
                                        or other services designed to 
                                        reduce or eliminate any 
                                        barriers.
                                            ``(dd) Program operators 
                                        shall provide case management 
                                        services and ensure access to 
                                        appropriate education, 
                                        training, and other services, 
                                        including job accommodation, 
                                        work supports, and supported 
                                        employment, as appropriate and 
                                        consistent with an individual 
                                        employment plan (unless the 
                                        individual already has an 
                                        employment plan developed by 
                                        the appropriate State agency 
                                        with responsibility for the 
                                        administration of the State 
                                        program funded under this part 
                                        or the State workforce 
                                        investment board established 
                                        under section 111 of the 
                                        Workforce Investment Act of 
                                        1998 (29 U.S.C. 2821)) that is 
                                        based on the individual's 
                                        strengths, resources, 
                                        priorities, concerns, 
                                        abilities, capabilities, career 
                                        interests, and informed choice 
                                        and that is developed with each 
                                        participant. The goal of each 
                                        participant's plan shall focus 
                                        on preparation for unsubsidized 
                                        jobs in demand in the local 
                                        economy which offer the 
                                        potential for advancement and 
                                        growth. Services shall also 
                                        include job placement 
                                        assistance and retention 
                                        services for 12 months after 
                                        entry into unsubsidized 
                                        placement. Participants shall 
                                        also receive support services 
                                        such as subsidized child care 
                                        and transportation, on the same 
                                        basis as those services are 
                                        made available to recipients of 
                                        assistance under the State 
                                        program funded under this part 
                                        who are engaged in work-related 
                                        activities.
                                            ``(ee) Providers shall work 
                                        with individual recipients to 
                                        determine eligibility for other 
                                        employment-related supports 
                                        which may include (but are not 
                                        limited to) supported 
                                        employment, other vocational 
                                        rehabilitation services, and 
                                        programs or services available 
                                        under the Workforce Investment 
                                        Act of 1998 (29 U.S.C. 2801 et 
                                        seq.), or the ticket to work 
                                        and self-sufficiency program 
                                        established under section 1148, 
                                        and, to the extent possible, 
                                        shall provide transitional 
                                        employment in collaboration 
                                        with entities providing, or 
                                        arranging for the provision of, 
                                        such other supports.
                                            ``(ff) Not more than \1/3\ 
                                        of the placements for a grantee 
                                        shall be with a private for-
                                        profit company, except that 
                                        such \1/3\ limit may be waived 
                                        by the Secretary for programs 
                                        in rural areas when the grantee 
                                        can demonstrate insufficient 
                                        public and non-profit 
                                        worksites. When a placement is 
                                        made at a private for-profit 
                                        company, the company shall pay 
                                        50 percent of program costs 
                                        (including wages) for each 
                                        participant, and the company 
                                        shall agree, in writing, to 
                                        hire each participant into an 
                                        unsubsidized position at the 
                                        completion of the agreed upon 
                                        subsidized placement, or 
                                        sooner, provided that the 
                                        participant's job performance 
                                        has been satisfactory.
                                            ``(gg) Subject to item 
                                        (hh), not more than 15 percent 
                                        of the workforce of a private 
                                        for-profit company may be 
                                        composed of transitional jobs 
                                        participants.
                                            ``(hh) Notwithstanding item 
                                        (gg), no employer shall be 
                                        precluded from employing up to 
                                        2 transitional jobs 
                                        participants.
                                    ``(IV) Definition of transitional 
                                jobs program.--In this clause, the term 
                                `transitional jobs program' means a 
                                program that is intended to serve 
                                current and former recipients of 
                                assistance under a State or tribal 
                                program funded under this part and 
                                other low-income individuals who have 
                                been unable to secure employment 
                                through job search or other employment-
                                related services because of limited 
                                skills, experience, or other barriers 
                                to employment.
                            ``(iii) Limitation on administrative 
                        expenditures.--Not more than 5 percent of the 
                        funds awarded to an eligible applicant under 
                        clause (i) or (ii) may be used for 
                        administrative expenditures incurred in 
                        carrying out the activities described in clause 
                        (i) or (ii) or for expenditures related to 
                        carrying out the assessments and reports 
                        required under subparagraph (H).
                    ``(F) Definition of eligible individual.--In this 
                paragraph, the term `eligible individual' means--
                            ``(i) an individual who is a parent who is 
                        a recipient of assistance under a State or 
                        tribal program funded under this part;
                            ``(ii) an individual who is a parent who 
                        has ceased to receive assistance under such a 
                        State or tribal program;
                            ``(iii) an individual who is at risk of 
                        receiving assistance under a State or tribal 
                        program funded under this part;
                            ``(iv) an individual with a disability; or
                            ``(v) a noncustodial parent who is 
                        unemployed, or is having difficulty in paying 
                        child support obligations, including such a 
                        parent who is a former criminal offender.
                    ``(G) Application.--Each eligible applicant 
                desiring a grant under this paragraph shall submit an 
                application to the Secretaries at such time, in such 
                manner, and accompanied by such information as the 
                Secretaries may require.
                    ``(H) Assessments and reports by grantees.--
                            ``(i) In general.--An eligible applicant 
                        that receives a grant under this paragraph 
                        shall assess and report on the outcomes of 
                        programs funded under the grant, including the 
                        identity of each program operator, demographic 
                        information about each participant, including 
                        education level, literacy level, prior work 
                        experience and identified barriers to 
                        employment, the nature of education, training, 
                        or other services received by the participant, 
                        the reason for the participant's leaving the 
                        program, and outcomes related to the placement 
                        of the participant in an unsubsidized job, 
                        including 1-year employment retention, wage at 
                        placement, benefits, and earnings progression, 
                        as specified by the Secretaries.
                            ``(ii) Assistance.--The Secretaries shall--
                                    ``(I) assist grantees in conducting 
                                the assessment required under clause 
                                (i) by making available where 
                                practicable low-cost means of tracking 
                                the labor market outcomes of 
                                participants; and
                                    ``(II) encourage States to provide 
                                such assistance.
                    ``(I) Application to requirements of the state 
                program.--
                            ``(i) Participation not considered 
                        assistance.--A benefit or service provided with 
                        funds made available under a grant made under 
                        this paragraph shall not be considered 
                        assistance for any purpose under a State or 
                        tribal program funded under this part.
                            ``(ii) General rules governing use of 
                        funds.--The rules of section 404, other than 
                        subsection (b) of that section, shall not apply 
                        to a grant made under this paragraph.
                    ``(J) Assessments by the secretaries.--
                            ``(i) Reservation of funds.--Of the amount 
                        appropriated to carry out this paragraph for 
                        each of fiscal years 2006 and 2007, $3,000,000 
                        of such amount for each such fiscal year is 
                        reserved for use by the Secretaries to prepare 
                        an interim and final report summarizing and 
                        synthesizing outcomes and lessons learned from 
                        the programs funded through grants awarded 
                        under this paragraph.
                            ``(ii) Interim and final assessments.--With 
                        respect to the reports prepared under clause 
                        (i), the Secretaries shall submit--
                                    ``(I) the interim report not later 
                                than 4 years after the date of 
                                enactment of the Personal 
                                Responsibility and Individual 
                                Development for Everyone Act; and
                                    ``(II) the final report not later 
                                than 6 years after such date of 
                                enactment.
                    ``(K) Evaluations.--
                            ``(i) Reservation of funds.--Of the amount 
                        appropriated to carry out this paragraph for a 
                        fiscal year, an amount equal to 1.5 percent of 
                        such amount for each such fiscal year shall be 
                        reserved for use by the Secretaries to conduct 
                        evaluations in accordance with the requirements 
                        of clause (ii).
                            ``(ii) Requirements.--The Secretaries--
                                    ``(I) shall develop a plan to 
                                evaluate the extent to which programs 
                                funded under grants made under this 
                                paragraph have been effective in 
                                promoting sustained, unsubsidized 
                                employment for each group of eligible 
                                participants, and in improving the 
                                skills and wages of participants in 
                                comparison to the participants' skills 
                                and wages prior to participation in the 
                                programs;
                                    ``(II) may evaluate the use of such 
                                a grant by a grantee, as the 
                                Secretaries deem appropriate, in 
                                accordance with an agreement entered 
                                into with the grantee after good-faith 
                                negotiations; and
                                    ``(III) shall include, as 
                                appropriate, the following outcome 
                                measures in the evaluation plan 
                                developed under subclause (I):
                                            ``(aa) Placements in 
                                        unsubsidized employment.
                                            ``(bb) Retention in 
                                        unsubsidized employment 6 
                                        months and 12 months after 
                                        initial placement.
                                            ``(cc) Earnings of 
                                        individuals at the time of 
                                        placement in unsubsidized 
                                        employment.
                                            ``(dd) Earnings of 
                                        individuals 12 months after 
                                        placement in unsubsidized 
                                        employment.
                                            ``(ee) The extent to which 
                                        unsubsidized job placements 
                                        include access to affordable 
                                        employer-sponsored health 
                                        insurance and paid leave 
                                        benefits.
                                            ``(ff) Comparison of pre- 
                                        and post-program wage rates of 
                                        participants.
                                            ``(gg) Comparison of pre- 
                                        and post-program skill levels 
                                        of participants.
                                            ``(hh) Wage growth and 
                                        employment retention in 
                                        relation to occupations and 
                                        industries at initial placement 
                                        in unsubsidized employment and 
                                        over the first 12 months after 
                                        initial placement.
                                            ``(ii) Recipient of cash 
                                        assistance under the State 
                                        program funded under this part.
                                            ``(jj) Average expenditures 
                                        per participant.
                            ``(iii) Reports to congress.--The 
                        Secretaries shall submit to Congress the 
                        following reports on the evaluations of 
                        programs funded under grants made under this 
                        paragraph:
                                    ``(I) Interim report.--An interim 
                                report not later than 4 years after the 
                                date of enactment of the Personal 
                                Responsibility and Individual 
                                Development for Everyone Act.
                                    ``(II) Final report.--A final 
                                report not later than 6 years after 
                                such date of enactment.
                    ``(L) Authorization of appropriations.--
                            ``(i) In general.--There is authorized to 
                        be appropriated for the purpose of carrying out 
                        this paragraph, $200,000,000 for each of fiscal 
                        years 2006 through 2010.
                            ``(ii) Availability.--Amounts appropriated 
                        in accordance with clause (i) for a fiscal year 
                        shall remain available for obligation for 5 
                        fiscal years after the fiscal year in which the 
                        amount is appropriated.''.
            (2) Nondisplacement in work activities.--Section 407(f) (42 
        U.S.C. 607(f)) is amended to read as follows:
    ``(f) Nondisplacement.--
            ``(1) In general.--An adult in a family receiving 
        assistance under a State program funded under this part, in 
        order to engage in a work activity, shall not displace any 
        employee or position (including partial displacement, such as a 
        reduction in the hours of nonovertime work, wages, or 
        employment benefits), fill any unfilled vacancy, or perform 
        work when any individual is on layoff from the same or 
        substantially equivalent job.
            ``(2) Prohibitions.--A work activity engaged in under a 
        program operated with funds provided under this part shall not 
        impair any existing contract for services, be inconsistent with 
        any existing law, regulation, or collective bargaining 
        agreement, or infringe upon the recall rights or promotional 
        opportunities of any worker.
            ``(3) No supplanting of other hires.--A work activity 
        engaged in under a program operated with funds provided under 
        this part shall be in addition to any activity that otherwise 
        would be available and shall not supplant the hiring of an 
        employed worker not funded under such program.
            ``(4) Enforcing antidisplacement protections.--
                    ``(A) In general.--The State shall establish and 
                maintain an impartial grievance procedure, which shall 
                include the opportunity for a hearing, to resolve any 
                complaints alleging violations of the requirements of 
                paragraph (1), (2), or (3) within 60 days of receipt of 
                the complaint and, if a decision is adverse to the 
                party who filed such grievance or no decision has been 
                reached, provide for the completion of an arbitration 
                procedure within 75 days of receipt of the complaint or 
                the adverse decision or conclusion of the 60-day 
                period, whichever is earlier.
                    ``(B) Appeals.--Appeals may be made to the 
                Secretary who shall make a decision within 75 days of 
                receipt of an appeal.
                    ``(C) Remedies.--Remedies for a violation of the 
                requirements of paragraph (1), (2), or (3) shall 
                include--
                            ``(i) suspension or termination of payments 
                        from funds provided under this part;
                            ``(ii) prohibition of placement of a 
                        participant with an employer that has violated 
                        paragraph (1), (2), or (3);
                            ``(iii) where applicable, reinstatement of 
                        an employee, payment of lost wages and 
                        benefits, and reestablishment of other relevant 
                        terms, conditions and privileges of employment; 
                        and
                            ``(iv) where appropriate, other equitable 
                        relief.
                    ``(D) Limitation on placement.--If a grievance is 
                filed regarding a proposed placement of a participant, 
                such placement shall not be made unless such placement 
                is consistent with the resolution of the grievance 
                pursuant to this paragraph.
                    ``(E) Non-exclusive procedures.--The grievance 
                procedures specified in this paragraph are not 
                exclusive, and an aggrieved employee or participant in 
                a program funded under a grant made under this part may 
                pursue other remedies or procedures available under 
                applicable contracts, collective bargaining agreements, 
                or Federal, State, or local laws.
                    ``(E) No preemption.--The provisions of this 
                subsection shall not be construed to preempt any 
                provision of State or local law that affords greater 
                protections to employees or to other participants 
                engaged in work activities under a program funded under 
                this part than is afforded by the provisions of this 
                subsection.''.
    (d) Teen Pregnancy Prevention Resource Center.--Section 413 (42 
U.S.C. 613), as amended by section 114(f), is amended by adding at the 
end the following:
    ``(q) Teen Pregnancy Prevention Resource Center.--
            ``(1) Authority.--
                    ``(A) In general.--The Secretary shall make a grant 
                to 1 nationally recognized, nonpartisan, nonprofit 
                organization that meets the requirements described in 
                subparagraph (B) to establish and operate a national 
                teen pregnancy prevention resource center (in this 
                subsection referred to as the `Resource Center') to 
                carry out the purposes and activities described in 
                paragraph (2).
                    ``(B) Requirements.--The requirements described in 
                this subparagraph are the following:
                            ``(i) The organization focuses exclusively 
                        on preventing teen pregnancy and has at least 9 
                        years of experience in working with diverse 
                        sectors of society to reduce teen pregnancy.
                            ``(ii) The organization has a demonstrated 
                        ability to work with, and provide assistance 
                        to, a broad range of individuals and entities 
                        with a variety of perspectives, including teens 
                        and youth leaders, parents, the entertainment 
                        and news media, State, tribal, and local 
                        organizations, networks of teen pregnancy 
                        prevention practitioners, businesses, faith and 
                        community leaders, and researchers.
                            ``(iii) The organization is research-based 
                        and has capabilities in scientific analysis and 
                        evaluation.
                            ``(iv) The organization has comprehensive 
                        knowledge and data about teen pregnancy 
                        prevention strategies.
                            ``(v) The organization has experience 
                        carrying out activities similar to the 
                        activities described in paragraph (2)(B).
            ``(2) Purposes and activities.--
                    ``(A) Purposes.--The purposes of the Resource 
                Center are to improve the well-being of children and 
                families and encourage young people to delay pregnancy 
                until marriage. Specifically, the Resource Center 
                shall--
                            ``(i) provide information and technical 
                        assistance to States, Indian tribes, local 
                        communities, and other public or private 
                        organizations seeking to reduce rates of teen 
                        pregnancy;
                            ``(ii) support parents in their essential 
                        role in preventing teen pregnancy by equipping 
                        them with information and resources to promote 
                        and strengthen communication with their 
                        children about sex, values, and positive 
                        relationships, including healthy marriage; and
                            ``(iii) assist the entertainment media 
                        industry by providing information and 
                        encouraging the industry to develop content and 
                        messages for teens and adults that can help 
                        prevent teen pregnancy.
                    ``(B) Activities.--The Resource Center shall carry 
                out the purposes described in subparagraph (A) through 
                the following activities:
                            ``(i) Synthesizing and disseminating 
                        research and information regarding effective 
                        and promising practices, and providing 
                        information on how to design and implement 
                        effective strategies to prevent teen pregnancy.
                            ``(ii) Providing information and reaching 
                        out to diverse populations, with particular 
                        attention to areas and populations with the 
                        highest rates of teen pregnancy.
                            ``(iii) Helping States, local communities, 
                        and other organizations increase their 
                        knowledge of existing resources that can be 
                        used to advance teen pregnancy prevention 
                        efforts, and build their capacity to access 
                        such resources and develop partnerships with 
                        other programs and funding streams.
                            ``(iv) Raising awareness of the importance 
                        of increasing the proportion of children born 
                        to, and raised in, healthy, adult marriages.
                            ``(v) Linking organizations working to 
                        reduce teen pregnancy with experts and peers, 
                        including the creation of technical assistance 
                        networks that use cost-effective and efficient 
                        communication tools (such as the Internet).
                            ``(vi) Providing consultation and resources 
                        about how to reduce teen pregnancy to various 
                        sectors of society including parents, other 
                        adults (such as teachers, coaches, and 
                        mentors), community and faith-based groups, the 
                        entertainment and news media, businesses, and 
                        teens themselves, through a broad array of 
                        strategies and messages, including a focus on 
                        abstinence, responsible behavior, family 
                        communication, relationships, and values.
                            ``(vii) Assisting organizations seeking to 
                        reduce teen pregnancy in their efforts to 
                        communicate effective messages about preventing 
                        teen pregnancy with a variety of audiences 
                        (including teens, parents, and ethnically 
                        diverse groups).
                            ``(viii) Providing resources for parents 
                        and other adults that help to foster strong 
                        relationships with children, a strategy that 
                        research has shown is effective in reducing 
                        sexual activity and teen pregnancy, including 
                        online access to research, parent guides, tips, 
                        advice from experts, and information about the 
                        media environment of teens.
                            ``(ix) Working directly with individuals 
                        and organizations in the entertainment industry 
                        to provide consultation and serve as a source 
                        of factual information on issues related to 
                        teen pregnancy prevention.
            ``(3) Collaboration with other organizations.--The 
        organization operating the Resource Center shall collaborate 
        with other organizations that have expertise and interest in 
        teen pregnancy prevention, and that can help reach out to 
        diverse audiences.
            ``(4) Appropriation.--Out of any money in the Treasury of 
        the United States not otherwise appropriated, there is 
        appropriated to carry out this subsection, $5,000,000 for 
        fiscal year 2006. Funds appropriated under this subparagraph 
        shall remain available for expenditure through fiscal year 
        2010.''.

SEC. 120. TECHNICAL CORRECTIONS.

    (a) Section 409(c)(2)(A) (42 U.S.C. 609(c)(2)(A)), as added by 
section 111(b)(1), is amended by inserting a comma after 
``appropriate''.
    (b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. 611(a)(1)(A)(ii)(III)) 
is amended by striking the last close parenthesis.
    (c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is amended by 
striking ``section'' and inserting ``sections''.
    (d)(1) Section 413 (42 U.S.C. 613) is amended by striking 
subsection (g) and redesignating subsections (h) through (j) and 
subsections (k) through (q) (as added by sections 101(d), 103(c), 
subsections (a), (d), (e), and (f) of section 114, and section 119(d) 
of this Act, respectively) as subsections (g) through (p), 
respectively.
    (2) Each of the following provisions is amended by striking 
``413(j)'' and inserting ``413(i)'':
            (A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C. 
        603(a)(5)(A)(ii)(III)).
            (B) Section 403(a)(5)(F) (42 U.S.C. 603(a)(5)(F)).
            (C) Section 403(a)(5)(G)(ii) (42 U.S.C. 603(a)(5)(G)(ii)).
            (D) Section 412(a)(3)(B)(iv) (42 U.S.C. 612(a)(3)(B)(iv)).

                     TITLE II--ABSTINENCE EDUCATION

SEC. 201. EXTENSION OF ABSTINENCE EDUCATION PROGRAM.

    (a) Extension of Appropriations.--Section 510(d) (42 U.S.C. 710(d)) 
is amended by striking ``2003'' and inserting ``2010''.
    (b) Allotment of Funds.--Section 510(a) (42 U.S.C. 710(a)) is 
amended--
            (1) in the matter preceding paragraph (1), by striking ``an 
        application for the fiscal year under section 505(a)'' and 
        inserting ``, for the fiscal year, an application under section 
        505(a), and an application under this section (in such form and 
        meeting such terms and conditions as determined appropriate by 
        the Secretary),''; and
            (2) in paragraph (2), to read as follows:
            ``(2) the percentage described in section 502(c)(1)(B)(ii) 
        that would be determined for the State under section 502(c) if 
        such determination took into consideration only those States 
        that transmitted both such applications for such fiscal 
        year.''.
    (c) Reallotment of Funds.--Section 510 (42 U.S.C. 710) is amended 
by adding at the end the following:
    ``(e)(1) With respect to allotments under subsection (a) for fiscal 
year 2006 and subsequent fiscal years, the amount of any allotment to a 
State for a fiscal year that the Secretary determines will not be 
expended to carry out a program under this section during such fiscal 
year or the succeeding fiscal year shall be available for reallotment 
from time to time during such fiscal years on such dates as the 
Secretary may fix, to other States that the Secretary determines--
            ``(A) require amounts in excess of amounts previously 
        allotted under subsection (a) to carry out a program under this 
        section; and
            ``(B) will expend such excess amounts during such fiscal 
        years.
    ``(2) Reallotments under paragraph (1) shall be made on the basis 
of such States' applications under this section, after taking into 
consideration the population of low-income children in each such State 
as compared with the population of low-income children in all such 
States with respect to which a determination under paragraph (1) has 
been made by the Secretary.
    ``(3) Any amount reallotted under paragraph (1) to a State is 
deemed to be part of its allotment under subsection (a).''.
    (d) Effective Date.--The amendments made by this section shall be 
effective with respect to the program under section 510 of the Social 
Security Act for fiscal years 2006 and succeeding fiscal years.

                        TITLE III--CHILD SUPPORT

SEC. 301. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF 
              OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.

    (a) Modification of Rule Requiring Assignment of Support Rights as 
a Condition of Receiving TANF.--Section 408(a)(3) (42 U.S.C. 608(a)(3)) 
is amended to read as follows:
            ``(3) No assistance for families not assigning certain 
        support rights to the state.--A State to which a grant is made 
        under section 403 shall require, as a condition of paying 
        assistance to a family under the State program funded under 
        this part, that a member of the family assign to the State any 
        right the family member may have (on behalf of the family 
        member or of any other person for whom the family member has 
        applied for or is receiving such assistance) to support from 
        any other person, not exceeding the total amount of assistance 
        so paid to the family, which accrues during the period that the 
        family receives assistance under the program.''.
    (b) Increasing Child Support Payments to Families and Simplifying 
Child Support Distribution Rules.--
            (1) Distribution rules.--
                    (A) In general.--Section 457(a) (42 U.S.C. 657(a)) 
                is amended to read as follows:
    ``(a) In General.--Subject to subsections (d) and (e), the amounts 
collected on behalf of a family as support by a State pursuant to a 
plan approved under this part shall be distributed as follows:
            ``(1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State shall--
                    ``(A) pay to the Federal Government the Federal 
                share of the amount collected, subject to paragraph 
                (3)(A);
                    ``(B) retain, or pay to the family, the State share 
                of the amount collected, subject to paragraph (3)(B); 
                and
                    ``(C) pay to the family any remaining amount.
            ``(2) Families that formerly received assistance.--In the 
        case of a family that formerly received assistance from the 
        State:
                    ``(A) Current support.--To the extent that the 
                amount collected does not exceed the current support 
                amount, the State shall pay the amount to the family.
                    ``(B) Arrearages.--Except as otherwise provided in 
                an election made under section 454(34), to the extent 
                that the amount collected exceeds the current support 
                amount, the State--
                            ``(i) shall first pay to the family the 
                        excess amount, to the extent necessary to 
                        satisfy support arrearages not assigned 
                        pursuant to section 408(a)(3);
                            ``(ii) if the amount collected exceeds the 
                        amount required to be paid to the family under 
                        clause (i), shall--
                                    ``(I) pay to the Federal Government 
                                the Federal share of the excess amount 
                                described in this clause, subject to 
                                paragraph (3)(A); and
                                    ``(II) retain, or pay to the 
                                family, the State share of the excess 
                                amount described in this clause, 
                                subject to paragraph (3)(B); and
                            ``(iii) shall pay to the family any 
                        remaining amount.
            ``(3) Limitations.--
                    ``(A) Federal reimbursements.--The total of the 
                amounts paid by the State to the Federal Government 
                under paragraphs (1) and (2) of this subsection with 
                respect to a family shall not exceed the Federal share 
                of the amount assigned with respect to the family 
                pursuant to section 408(a)(3).
                    ``(B) State reimbursements.--The total of the 
                amounts retained by the State under paragraphs (1) and 
                (2) of this subsection with respect to a family shall 
                not exceed the State share of the amount assigned with 
                respect to the family pursuant to section 408(a)(3).
            ``(4) Families that never received assistance.--In the case 
        of any other family, the State shall pay the amount collected 
        to the family.
            ``(5) Families under certain agreements.--Notwithstanding 
        paragraphs (1) through (3), in the case of an amount collected 
        for a family in accordance with a cooperative agreement under 
        section 454(33), the State shall distribute the amount 
        collected pursuant to the terms of the agreement.
            ``(6) State financing options.--To the extent that the 
        State's share of the amount payable to a family pursuant to 
        paragraph (2)(B) of this subsection exceeds the amount that the 
        State estimates (under procedures approved by the Secretary) 
        would have been payable to the family pursuant to former 
        section 457(a)(2)(B) (as in effect for the State immediately 
        before the date this subsection first applies to the State) if 
        such former section had remained in effect, the State may elect 
        to have the payment considered a qualified State expenditure 
        for purposes of section 409(a)(7).
            ``(7) State option to pass through additional support with 
        federal financial participation.--
                    ``(A) Families that formerly received assistance.--
                Notwithstanding paragraph (2), a State shall not be 
                required to pay to the Federal Government the Federal 
                share of an amount collected on behalf of a family that 
                formerly received assistance from the State to the 
                extent that the State pays the amount to the family.
                    ``(B) Families that currently receive assistance.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (1), in the case of a family that 
                        receives assistance from the State, a State 
                        shall not be required to pay to the Federal 
                        Government the Federal share of the excepted 
                        portion (as defined in clause (ii)) of any 
                        amount collected on behalf of such family 
                        during a month to the extent that--
                                    ``(I) the State pays the excepted 
                                portion to the family; and
                                    ``(II) the excepted portion is 
                                disregarded in determining the amount 
                                and type of assistance provided to the 
                                family under such program.
                            ``(ii) Excepted portion defined.--For 
                        purposes of this subparagraph, the term 
                        `excepted portion' means that portion of the 
                        amount collected on behalf of a family during a 
                        month that does not exceed $400 per month, or 
                        in the case of a family that includes 2 or more 
                        children, that does not exceed an amount 
                        established by the State that is not more than 
                        $600 per month.
            ``(8) States with demonstration waivers.--Notwithstanding 
        the preceding paragraphs, in the case of a State that, on the 
        date of enactment of this paragraph, has had in effect since 
        October 1, 1997, a waiver under section 1115 permitting pass-
        through payments of child support collections--
                    ``(A) the State may continue to distribute such 
                payments to families without regard to the expiration 
                date of such waiver; and
                    ``(B) the requirement under paragraph (1) to pay to 
                the Federal Government the Federal share of the amount 
                collected on behalf of a family shall not apply to the 
                extent that--
                            ``(i) the State distributes such amount to 
                        the family; and
                            ``(ii) such amount is disregarded in 
                        determining the amount and type of assistance 
                        paid to the family.''.
                    (B) State plan to include election as to which 
                rules to apply in distributing child support arrearages 
                collected on behalf of families formerly receiving 
                assistance.--Section 454 (42 U.S.C. 654) is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (32);
                            (ii) by striking the period at the end of 
                        paragraph (33) and inserting ``; and''; and
                            (iii) by inserting after paragraph (33) the 
                        following:
            ``(34) include an election by the State to apply section 
        457(a)(2)(B) of this Act or former section 457(a)(2)(B) of this 
        Act (as in effect for the State immediately before the date 
        this paragraph first applies to the State) to the distribution 
        of the amounts which are the subject of such sections and, for 
        so long as the State elects to so apply such former section, 
        the amendments made by section 301(d)(1) of the Personal 
        Responsibility and Individual Development for Everyone Act 
        shall not apply with respect to the State, notwithstanding 
        section 301(e) of that Act.''.
                    (C) Approval of estimation procedures.--Not later 
                than the date that is 6 months after the date of 
                enactment of this Act, the Secretary of Health and 
                Human Services, in consultation with the States (as 
                defined for purposes of part D of title IV of the 
                Social Security Act (42 U.S.C. 651 et seq.)), shall 
                establish the procedures to be used to make the 
                estimate described in section 457(a)(6) of such Act (42 
                U.S.C. 657(a)(6)).
            (2) Current support amount defined.--Section 457(c) (42 
        U.S.C. 657(c)) is amended by adding at the end the following:
            ``(5) Current support amount.--The term `current support 
        amount' means, with respect to amounts collected as support on 
        behalf of a family, the amount designated as the monthly 
        support obligation of the noncustodial parent in the order 
        requiring the support or calculated by the State based on such 
        order.''.
    (c) State Option To Discontinue Older Support Assignments.--Section 
457(b) (42 U.S.C. 657(b)) is amended to read as follows:
    ``(b) Continuation of Assignments.--
            ``(1) State option to discontinue pre-1997 support 
        assignments.--
                    ``(A) In general.--Any rights to support 
                obligations assigned to a State as a condition of 
                receiving assistance from the State under part A and in 
                effect on September 30, 1997 (or such earlier date on 
                or after August 22, 1996, as the State may choose), may 
                remain assigned after such date.
                    ``(B) Distribution of amounts after assignment 
                discontinuation.--If a State chooses to discontinue the 
                assignment of a support obligation described in 
                subparagraph (A), the State may treat amounts collected 
                pursuant to such assignment as if such amounts had 
                never been assigned and may distribute such amounts to 
                the family in accordance with subsection (a)(4).
            ``(2) State option to discontinue post-1997 assignments.--
                    ``(A) In general.--Any rights to support 
                obligations accruing before the date on which a family 
                first receives assistance under part A that are 
                assigned to a State under that part and in effect 
                before the implementation date of this section may 
                remain assigned after such date.
                    ``(B) Distribution of amounts after assignment 
                discontinuation.--If a State chooses to discontinue the 
                assignment of a support obligation described in 
                subparagraph (A), the State may treat amounts collected 
                pursuant to such assignment as if such amounts had 
                never been assigned and may distribute such amounts to 
                the family in accordance with subsection (a)(4).''.
    (d) Conforming Amendments.--
            (1) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)), as 
        amended by section 103(c), is amended--
                    (A) in subclause (I)(aa), by striking 
                ``457(a)(1)(B)'' and inserting ``457(a)(1)''; and
                    (B) by adding at the end the following:
                                    ``(VI) Portions of certain child 
                                support payments collected on behalf of 
                                and distributed to families no longer 
                                receiving assistance.--Any amount paid 
                                by a State pursuant to clause (i) or 
                                (ii) of section 457(a)(2)(B), but only 
                                to the extent that the State properly 
                                elects under section 457(a)(6) to have 
                                the payment considered a qualified 
                                State expenditure.''.
            (2) Section 6402(c) of the Internal Revenue Code of 1986 
        (relating to offset of past-due support against overpayments) 
        is amended--
                    (A) in the first sentence, by striking ``the Social 
                Security Act.'' and inserting ``of such Act.''; and
                    (B) by striking the third sentence and inserting 
                the following: ``The Secretary shall apply a reduction 
                under this subsection first to an amount certified by 
                the State as past due support under section 464 of the 
                Social Security Act before any other reductions allowed 
                by law.''.
    (e) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on October 1, 2009, and shall apply to payments 
        under parts A and D of title IV of the Social Security Act for 
        calendar quarters beginning on or after such date, and without 
        regard to whether regulations to implement such amendments (in 
        the case of State programs operated under such part D) are 
        promulgated by such date.
            (2) State option to accelerate effective date.--In 
        addition, a State may elect to have the amendments made by this 
        section apply to the State and to amounts collected by the 
        State (and such payments under parts A and D), on and after 
        such date as the State may select that is not earlier than 18 
        months after the date of enactment of this Act and not later 
        than September 30, 2009.

SEC. 302. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR 
              FAMILIES RECEIVING TANF.

    (a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C. 
666(a)(10)(A)(i)) is amended--
            (1) by striking ``parent, or,'' and inserting ``parent 
        or''; and
            (2) by striking ``upon the request of the State agency 
        under the State plan or of either parent,''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2007.

SEC. 303. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

    Not later than 6 months after the date of enactment of this Act, 
the Secretary of Health and Human Services shall submit to the 
Committee on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a report on the procedures that the 
States use generally to locate custodial parents for whom child support 
has been collected but not yet distributed. The report shall include an 
estimate of the total amount of undistributed child support and the 
average length of time it takes undistributed child support to be 
distributed. To the extent the Secretary deems appropriate, the 
Secretary shall include in the report recommendations as to whether 
additional procedures should be established at the Federal or State 
level to expedite the payment of undistributed child support.

SEC. 304. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING 
              PASSPORT DENIAL.

    (a) In General.--Section 452(k)(1) (42 U.S.C. 652(k)(1)) is amended 
by striking ``$5,000'' and inserting ``$2,500''.
    (b) Conforming Amendment.--Section 454(31) (42 U.S.C. 654(31)) is 
amended by striking ``$5,000'' and inserting ``$2,500''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006.

SEC. 305. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD 
              SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

    (a) In General.--Section 464 (42 U.S.C. 664) is amended--
            (1) in subsection (a)(2)(A), by striking ``(as that term is 
        defined for purposes of this paragraph under subsection (c))''; 
        and
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Except as provided in 
                        paragraph (2), as used in'' and inserting 
                        ``In''; and
                            (ii) by inserting ``(whether or not a 
                        minor)'' after ``a child'' each place it 
                        appears; and
                    (B) by striking paragraphs (2) and (3).
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2007.

SEC. 306. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
              CONNECTED DISABILITIES IN ORDER TO ENFORCE OBLIGATIONS.

    (a) In General.--Section 459(h)(1)(A)(ii)(V)) (42 U.S.C. 
659(h)(1)(A)(ii)(V)) is amended by striking all that follows ``Armed 
Forces'' and inserting ``, except that such compensation shall not be 
subject to withholding pursuant to this section for payment of alimony 
unless the former member to whom it is payable is in receipt of retired 
or retainer pay and has waived a portion of such pay in order to 
receive such compensation;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2007.

SEC. 307. IMPROVING FEDERAL DEBT COLLECTION PRACTICES.

    (a) In General.--Section 3716(h)(3) of title 31, United States 
Code, is amended to read as follows:
    ``(3)(A) Except as provided in subparagraph (B), in applying this 
section with respect to any debt owed to a State, subsection (c)(3)(A) 
shall not apply.
    ``(B) Subsection (c)(3)(A) shall apply with respect to payments 
owed to an individual under title II of the Social Security Act 
(notwithstanding any other provision of law, including section 207 of 
the Social Security Act (42 U.S.C. 407)) for purposes of offset under 
this section of such payments to collect past-due support being 
enforced by a State.''.
    (b) Conforming Amendment.--Section 3701(d)(2) of title 31, United 
States Code, is amended by striking ``section 3716(c) of this title'' 
and inserting ``subsections (c) and (h)(3) of section 3716 of this 
title''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date that is 18 months after the date of enactment of 
this Act.

SEC. 308. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.

    Section 452(j) (42 U.S.C. 652(j)) is amended by inserting ``or the 
amount appropriated under this paragraph for fiscal year 2002, 
whichever is greater'' before ``, which shall be available''.

SEC. 309. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE FUNDING.

    Section 453(o) (42 U.S.C. 653(o)) is amended--
            (1) in the first sentence, by inserting ``or the amount 
        appropriated under this paragraph for fiscal year 2002, 
        whichever is greater'' before ``, which shall be available''; 
        and
            (2) in the second sentence, by striking ``for each of 
        fiscal years 1997 through 2001''.

SEC. 310. IDENTIFICATION AND SEIZURE OF ASSETS HELD BY MULTISTATE 
              FINANCIAL INSTITUTIONS.

    (a) Duties of the Secretary.--Section 452(l) (42 U.S.C. 652(l)) is 
amended to read as follows:
    ``(l) Identification and Seizure of Assets Held by Multistate 
Financial Institutions.--
            ``(1) In general.--The Secretary, through the Federal 
        Parent Locator Service, is authorized--
                    ``(A) to assist State agencies operating programs 
                under this part and financial institutions doing 
                business in 2 or more States in reaching agreements 
                regarding the receipt from such institutions, and the 
                transfer to the State agencies, of information that may 
                be provided pursuant to section 466(a)(17)(A)(i) or 
                469A(a);
                    ``(B) to perform data matches comparing information 
                from such State agencies and financial institutions 
                entering into such agreements with respect to 
                individuals owing past-due support; and
                    ``(C) to seize assets, held by such financial 
                institutions, of individuals identified through such 
                data matches who owe past-due support, by--
                            ``(i) issuing a notice of lien or levy to 
                        such financial institutions requiring them to 
                        encumber such assets for 30 calendar days and 
                        to subsequently transfer such assets to the 
                        Secretary (except that the Secretary shall 
                        promptly release such lien or levy within such 
                        30-day period upon request of the State 
                        agencies responsible for collecting past-due 
                        support from such individuals); and
                            ``(ii) providing notice to such individuals 
                        of the lien or levy upon their assets and 
                        informing them--
                                    ``(I) of their procedural due 
                                process rights, including the 
                                opportunity to contest such lien or 
                                levy to the appropriate State agency; 
                                and
                                    ``(II) in the case of jointly owned 
                                assets, of the process by which other 
                                owners may secure their respective 
                                share of such assets, according to such 
                                policies and procedures as the 
                                Secretary may specify with respect to 
                                seizure of such assets.
            ``(2) Transfer of funds to states.--Assets seized from 
        individuals under paragraph (1)(C) shall be promptly 
        transferred by the Secretary to the State agencies responsible 
        for collecting past-due support from such individuals for 
        distribution pursuant to section 457.
            ``(3) Relationship to state laws.--Notwithstanding any 
        provision of State law, an individual receiving a notice under 
        paragraph (1)(C) shall have 21 calendar days from the date of 
        such notice to contest the lien or levy imposed under such 
        paragraph by requesting an administrative review by the State 
        agency responsible for collecting past-due support from such 
        individual.
            ``(4) Treatment of disclosures.--For purposes of section 
        1113(d) of the Right to Financial Privacy Act of 1978, a 
        disclosure pursuant to this subsection shall be considered a 
        disclosure pursuant to a Federal statute.''.
    (b) State Duties.--
            (1) Individuals with assets subject to federal seizure.--
        Section 454 (42 U.S.C. 654), as amended by section 
        301(b)(1)(B)(iii), is amended--
                    (A) in paragraph (33), by striking ``and'' at the 
                end;
                    (B) in paragraph (34), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting after paragraph (34), the 
                following:
            ``(35) provide that the State shall--
                    ``(A) upon furnishing the Secretary with 
                information under section 452(l) with respect to 
                individuals owing past-due support, provide notice to 
                such individuals that their assets held in financial 
                institutions shall be subject to seizure to pay such 
                past-due support, and shall--
                            ``(i) instruct such individuals of the 
                        steps which may be taken to contest the State's 
                        determination that past-due support is owed or 
                        the amount of the past-due support; and
                            ``(ii) include, in the case of jointly 
                        owned assets, a description of the process by 
                        which other owners may secure their share of 
                        such assets, in accordance with such policies 
                        and procedures as the Secretary may specify 
                        with respect to seizure of such assets;
                    ``(B) promptly resolve cases in which such 
                individuals contest the State's determination with 
                respect to past-due support, and provide for expedited 
                refund of any assets erroneously seized and transferred 
                to the State under such section 452(l); and
                    ``(C) except as otherwise specified under this 
                paragraph or by the Secretary, ensure that the due 
                process protections afforded under this paragraph to 
                individuals whose assets are subject to seizure under 
                section 452(l) are generally consistent with, and to 
                the extent practicable conform to, the due process 
                protections afforded by the State to individuals 
                subject to offset of tax refunds under section 464.''.
            (2) Reimbursement of federal costs.--Section 453(k)(3) (42 
        U.S.C. 653(k)(3)) is amended--
                    (A) in the paragraph heading, by inserting ``and 
                enforcement services'' after ``information'';
                    (B) by inserting ``or enforcement services'' after 
                ``that receives information'';
                    (C) by inserting ``or section 452(l)'' after 
                ``pursuant to this section''; and
                    (D) by striking ``in furnishing the information'' 
                and inserting ``in furnishing such information or 
                enforcement services''.
    (c) Conforming Amendments.--
            (1) State law requirements.--Section 466(a)(17) (42 U.S.C. 
        666(a)(17)) is amended--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by inserting ``pursuant 
                        to section 452(l)'' after ``and the Federal 
                        Parent Locator Service''; and
                            (ii) in clause (ii), by inserting ``issued 
                        by the State agency or by the Secretary under 
                        section 452(l)'' after ``in response to a 
                        notice of lien or levy''; and
                    (B) in subparagraph (C)--
                            (i) in clause (i), by inserting ``or to the 
                        Federal Parent Locator Service'' after ``to the 
                        State agency''; and
                            (ii) in clause (ii), by striking ``issued 
                        by the State agency''.
            (2) Nonliability for financial institutions.--Section 
        469A(a) (42 U.S.C. 669a(a)) is amended by inserting ``section 
        452(l) or'' before ``section 466(a)(17)(A)''.

SEC. 311. INFORMATION COMPARISONS WITH INSURANCE DATA.

    (a) Duties of the Secretary.--Section 452 (42 U.S.C. 652) is 
amended by adding at the end the following:
    ``(m) Comparisons With Insurance Information.--
            ``(1) In general.--The Secretary, through the Federal 
        Parent Locator Service, is authorized--
                    ``(A) to compare information concerning individuals 
                owing past-due support with information maintained by 
                insurers (or their agents) concerning insurance claims, 
                settlements, awards, and payments; and
                    ``(B) to furnish information resulting from such 
                data matches to the State agencies responsible for 
                collecting child support from such individuals.
            ``(2) Liability.--No insurer (including any agent of an 
        insurer) shall be liable under any Federal or State law to any 
        person for any disclosure provided for under this subsection, 
        or for any other action taken in good faith in accordance with 
        the provisions of this subsection.''.
    (b) State Reimbursement of Federal Costs.--Section 453(k)(3) (42 
U.S.C. 653(k)(3)), as amended by section 310(b)(2), is amended by 
striking ``section 452(l)'' and inserting ``subsection (l) or (m) of 
section 452''.

SEC. 312. TRIBAL ACCESS TO THE FEDERAL PARENT LOCATOR SERVICE.

    Section 453(c)(1) (42 U.S.C. 653(c)(1)) is amended by inserting 
``or Indian tribe or tribal organization'' after ``any agent or 
attorney of any State''.

SEC. 313. REIMBURSEMENT OF SECRETARY'S COSTS OF INFORMATION COMPARISONS 
              AND DISCLOSURE FOR ENFORCEMENT OF OBLIGATIONS ON HIGHER 
              EDUCATION ACT LOANS AND GRANTS.

    Section 453(j)(6)(F) (42 U.S.C. 653(j)(6)(F)) is amended by 
striking ``additional''.

SEC. 314. TECHNICAL AMENDMENT RELATING TO COOPERATIVE AGREEMENTS 
              BETWEEN STATES AND INDIAN TRIBES.

    Section 454(33) (42 U.S.C. 654(33)) is amended by striking ``that 
receives funding pursuant to section 428 and''.

SEC. 315. CLAIMS UPON LONGSHORE AND HARBOR WORKERS' COMPENSATION FOR 
              CHILD SUPPORT.

    (a) In General.--Section 17 of the Longshore and Harbor Workers' 
Compensation Act (33 U.S.C. 917) is amended to read as follows:

           ``liens on compensation; child support enforcement

    ``Sec. 17. (a) Liens.--Where a trust fund which complies with 
section 302(c) of the Labor Management Relations Act, 1947 (29 U.S.C. 
186(c)) established pursuant to a collective-bargaining agreement in 
effect between an employer and an employee covered under this Act has 
paid disability benefits to an employee which the employee is legally 
obligated to repay by reason of the employee's entitlement to 
compensation under this Act or under a settlement, the Secretary shall 
authorize a lien on such compensation in favor of the trust fund for 
the amount of such payments.
    ``(b) Child Support.--Compensation or benefits due or payable to an 
individual under this Act (other than medical benefits) shall be 
subject, in like manner and to the same extent as similar compensation 
or benefits under a workers' compensation program if established under 
State law--
            ``(1) to withholding in accordance with State law enacted 
        pursuant to subsections (a)(1) and (b) of section 466 of the 
        Social Security Act and regulations under such subsections; and
            ``(2) to any other legal process brought, by a State agency 
        administering a program under a State plan approved under part 
        D of title IV of the Social Security Act or by an individual 
        obligee, to enforce the legal obligation of the individual to 
        provide child support or alimony.''.
    (b) Conforming Amendments.--Section 16 of the Longshore and Harbor 
Workers' Compensation Act (33 U.S.C. 916) is amended--
            (1) by striking ``No'' and inserting ``Except as provided 
        by this Act, no''; and
            (2) by striking ``, except as provided by this Act,'' after 
        ``under this Act''.

SEC. 316. STATE OPTION TO USE STATEWIDE AUTOMATED DATA PROCESSING AND 
              INFORMATION RETRIEVAL SYSTEM FOR INTERSTATE CASES.

    Section 466(a)(14)(A)(iii) (42 U.S.C. 666(a)(14)(A)(iii)) is 
amended by inserting before the semicolon the following: ``(but the 
assisting State may establish a corresponding case based on such other 
State's request for assistance)''.

SEC. 317. STATE LAW REQUIREMENT CONCERNING THE UNIFORM INTERSTATE 
              FAMILY SUPPORT ACT (UIFSA).

    (a) In General.--Section 466(f) (42 U.S.C. 666(f)) is amended--
            (1) by striking ``and as in effect on August 22, 1996,''; 
        and
            (2) by striking ``adopted as of such date'' and inserting 
        ``adopted as of August, 2001''.
    (b) Full Faith and Credit for Child Support Orders.--Section 1738B 
of title 28, United States Code, is amended--
            (1) by striking subsection (d) and inserting the following:
    ``(d) Continuing Exclusive Jurisdiction.--
            ``(1) In general.--Subject to paragraph (2), a court of a 
        State that has made a child support order consistent with this 
        section has continuing, exclusive jurisdiction to modify its 
        order if the order is the controlling order and--
                    ``(A) the State is the child's State or the 
                residence of any individual contestant; or
                    ``(B) if the State is not the residence of the 
                child or an individual contestant, the contestants 
                consent in a record or in open court that the court may 
                continue to exercise jurisdiction to modify its order.
            ``(2) Requirement.--A court may not exercise its 
        continuing, exclusive jurisdiction to modify the order if the 
        court of another State, acting in accordance with subsections 
        (e) and (f), has made a modification of the order.'';
            (2) in subsection (e)(2)--
                    (A) in subparagraph (A), by striking ``because'' 
                and all that follows through the semicolon and 
                inserting ``pursuant to paragraph (1) or (2) of 
                subsection (d);'' and
                    (B) in subparagraph (B), by inserting ``with 
                jurisdiction over at least 1 of the individual 
                contestants or that is located in the child's State'' 
                after ``another State'';
            (3) in subsection (f)--
                    (A) in the subsection heading, by striking 
                ``Recognition of Child Support Orders'' and inserting 
                ``Determination of Controlling Child Support Order'';
                    (B) in the matter preceding paragraph (1), by 
                striking ``shall apply'' and all that follows through 
                the colon and inserting ``having personal jurisdiction 
                over both individual contestants shall apply the 
                following rules and by order shall determine which 
                order controls:'';
                    (C) in paragraph (1), by striking ``must be'' and 
                inserting ``controls and must be so'';
                    (D) in paragraph (2), by striking ``must be 
                recognized'' and inserting ``controls'';
                    (E) in paragraph (3), by striking ``must be 
                recognized'' each place it appears and inserting 
                ``controls'';
                    (F) in paragraph (4)--
                            (i) by striking ``may'' and inserting 
                        ``shall''; and
                            (ii) by striking ``must be recognized'' and 
                        inserting ``controls''; and
                    (G) by striking paragraph (5);
            (4) by striking subsection (g) and inserting the following:
    ``(g) Enforcement of Modified Orders.--If a child support order 
issued by a court of a State is modified by a court of another State 
which properly assumed jurisdiction, the issuing court--
            ``(1) may enforce its order that was modified only as to 
        arrears and interest accruing before the modification;
            ``(2) may provide appropriate relief for violations of its 
        order which occurred before the effective date of the 
        modification; and
            ``(3) shall recognize the modifying order of the other 
        State for the purpose of enforcement.'';
            (5) in subsection (h)--
                    (A) in paragraph (1), by striking ``and (3)'' and 
                inserting ``, (3), and (4)'';
                    (B) in paragraph (2), by inserting ``the 
                computation and payment of arrearages, and the accrual 
                of interest on the arrearages,'' after ``obligations of 
                support,''; and
                    (C) by adding at the end the following:
            ``(4) Prospective application.--After a court determines 
        which is the controlling order and issues an order 
        consolidating arrears, if any, a court shall prospectively 
        apply the law of the State issuing the controlling order, 
        including that State's law with respect to interest on arrears, 
        current and future support, and consolidated arrears.''; and
            (6) in subsection (i), by inserting ``and subsection (d)(2) 
        does not apply'' after ``issuing State''.

SEC. 318. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    (a) Authority To Make Grants to Indian Tribes.--Section 469B (42 
U.S.C. 669b) is amended--
            (1) in the section heading, by inserting ``and indian 
        tribes'' after ``states''; and
            (2) in subsection (a), by inserting ``and Indian tribes or 
        tribal organizations'' after ``to enable States''.
    (b) Amount of Grants.--Section 469B(b) (42 U.S.C. 669b(b)) is 
amended to read as follows:
    ``(b) Amount of Grants.--
            ``(1) Grants to states.--The amount of the grant to be made 
        to a State under this section for a fiscal year shall be an 
        amount equal to the lesser of--
                    ``(A) 90 percent of State expenditures during the 
                fiscal year for activities described in subsection (a); 
                or
                    ``(B) the allotment of the State under subsection 
                (c) for the fiscal year.
            ``(2) Grants to indian tribes.--An Indian tribe or tribal 
        organization operating a program under section 455 that has 
        operated such program throughout the preceding fiscal year and 
        has an application under this section approved by the Secretary 
        shall receive a grant under this section for a fiscal year in 
        an amount equal to the allotment of such Indian tribe or tribal 
        organization under subsection (c)(2) for the fiscal year.''.
    (c) Allotments.--Section 469B(c) (42 U.S.C. 669b(c)) is amended to 
read as follows:
    ``(c) Allotments.--
            ``(1) Allotments to states.--
                    ``(A) In general.--Subject to the subparagraph (C), 
                the allotment of a State for a fiscal year is the 
                amount that bears the same ratio to the amount 
                specified in subparagraph (B) for such fiscal year as 
                the number of children in the State living with only 1 
                parent bears to the total number of such children in 
                all States.
                    ``(B) Amount available for allotment.--For purposes 
                of subparagraph (A), the amount specified in this 
                subparagraph is the following amount, reduced by the 
                total allotments to Indian tribes or tribal 
                organizations in accordance with paragraph (2):
                            ``(i) $12,000,000 for fiscal year 2006.
                            ``(ii) $14,000,000 for fiscal year 2007.
                            ``(iii) $16,000,000 for fiscal year 2008.
                            ``(iv) $20,000,000 for fiscal year 2009 and 
                        each succeeding fiscal year.
                    ``(C) Minimum state allotment.--The Secretary shall 
                adjust allotments to States under subparagraph (A) as 
                necessary to ensure that no State is allotted less 
                than--
                            ``(i) $120,000 for fiscal year 2006;
                            ``(ii) $140,000 for fiscal year 2007;
                            ``(iii) $160,000 for fiscal year 2008; and
                            ``(iv) $180,000 for fiscal year 2009 and 
                        each succeeding fiscal year.
            ``(2) Allotments to indian tribes.--
                    ``(A) In general.--Subject to subparagraph (C), the 
                allotment of an Indian tribe or tribal organization 
                described in subsection (b)(2) for a fiscal year is an 
                amount that bears the same ratio to the amount 
                specified in subparagraph (B) for such fiscal year as 
                the number of children in the Indian tribe or tribal 
                organization living with only 1 parent bears to the 
                total number of such children in all Indian tribes and 
                tribal organizations eligible to receive grants under 
                this section for such year.
                    ``(B) Amount available for allotment.--For purposes 
                of subparagraph (A), the amount available under this 
                subparagraph is an amount, deducted from the amount 
                specified in paragraph (1)(B), not to exceed--
                            ``(i) $250,000 for fiscal year 2006;
                            ``(ii) $600,000 for fiscal year 2007;
                            ``(iii) $800,000 for fiscal year 2008; and
                            ``(iv) $1,670,000 for fiscal year 2009 and 
                        each succeeding year.
                    ``(C) Minimum and maximum tribal allotment.--The 
                Secretary shall adjust allotments to Indian tribes and 
                tribal organizations under subparagraph (A) as 
                necessary to ensure that no Indian tribe or tribal 
                organization is allotted, for a fiscal year, an amount 
                which is less than $10,000 or more than the minimum 
                State allotment for such fiscal year.''.
    (d) Administration.--Section 469B(e) (42 U.S.C. 669b(e)) is amended 
to read as follows:
    ``(e) Administration.--
            ``(1) Grants to states.--Each State to which a grant is 
        made under this section--
                    ``(A) may administer State programs funded with the 
                grant, directly or through grants to or contracts with 
                courts, local public agencies, or nonprofit private 
                entities; and
                    ``(B) shall not be required to operate such 
                programs on a statewide basis.
            ``(2) Grants to states or indian tribes.--Each State or 
        Indian tribe or tribal organization to which a grant is made 
        under this section shall monitor, evaluate, and report on such 
        programs in accordance with regulations prescribed by the 
        Secretary.''.

SEC. 319. TIMING OF CORRECTIVE ACTION YEAR FOR STATE NONCOMPLIANCE WITH 
              CHILD SUPPORT ENFORCEMENT PROGRAM REQUIREMENTS.

    (a) In General.--Section 409(a)(8) (42 U.S.C. 609(a)(8)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i)(I), by 
                striking ``in a fiscal year'' and inserting ``for a 
                fiscal year''; and
                    (B) in clause (ii)--
                            (i) in the matter preceding subclause (I), 
                        by striking ``that, with respect to the 
                        succeeding fiscal year--'' and inserting 
                        ``that, with respect to the period described in 
                        subparagraph (D)--''; and
                            (ii) in the matter following subclause 
                        (II), by striking ``the end of such succeeding 
                        fiscal year'' and inserting ``the end of the 
                        period described in subparagraph (D)''; and
            (2) by adding at the end the following:
                    ``(D) Period described.--Subject to subparagraph 
                (E), for purposes of this paragraph, the period 
                described in this subparagraph is the period that 
                begins with the date on which the Secretary makes a 
                finding described in subparagraph (A)(i) with respect 
                to State performance in a fiscal year and ends on 
                September 30 of the fiscal year following the fiscal 
                year in which the Secretary makes such a finding.
                    ``(E) No penalty if state corrects noncompliance in 
                finding year.--The Secretary shall not take a reduction 
                described in subparagraph (A) with respect to a 
                noncompliance described in clause (i) of that 
                subparagraph if the Secretary determines that the State 
                has corrected the noncompliance in the fiscal year in 
                which the Secretary makes the finding of the 
                noncompliance.''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective with respect to determinations of State compliance for fiscal 
year 2002 and succeeding fiscal years.
    (c) Special Rule for Fiscal Year 2001.--Notwithstanding any other 
provision of law, the Secretary of Health and Human Services shall not 
take against amounts otherwise payable to a State, a reduction 
described in section 409(a)(8)(A) of the Social Security Act (42 U.S.C. 
609(a)(8)(A)) with respect to a noncompliance described in such section 
occurring in fiscal year 2001 if the Secretary determines that the 
State has corrected such noncompliance in fiscal year 2002 or 2003.

SEC. 320. REQUIREMENT THAT STATE CHILD SUPPORT ENFORCEMENT AGENCIES 
              SEEK MEDICAL SUPPORT FOR CHILDREN FROM EITHER PARENT.

    (a) State Agencies Required To Seek Medical Support From Either 
Parent.--
            (1) In general.--Section 466(a)(19)(A) (42 U.S.C. 
        666(a)(19)(A)) is amended by striking ``which include a 
        provision for the health care coverage of the child are 
        enforced'' and inserting ``shall include a provision for 
        medical support for the child to be provided by either or both 
        parents, and shall be enforced''.
            (2) Conforming amendments.--
                    (A) Title iv-d.--
                            (i) Section 452(f) (42 U.S.C. 652(f)) is 
                        amended by striking ``include medical support 
                        as part of any child support order and enforce 
                        medical support'' and inserting ``enforce 
                        medical support included as part of a child 
                        support order''.
                            (ii) Section 466(a)(19) (42 U.S.C. 
                        666(a)(19)), as amended by paragraph (1), is 
                        amended--
                                    (I) in subparagraph (A)--
                                            (aa) by striking ``section 
                                        401(e)(3)(C)'' and inserting 
                                        ``section 401(e)''; and
                                            (bb) by striking ``section 
                                        401(f)(5)(C)'' and inserting 
                                        ``section 401(f)'';
                                    (II) in subparagraph (B)--
                                            (aa) by striking 
                                        ``noncustodial'' each place it 
                                        appears; and
                                            (bb) in clause (iii), by 
                                        striking ``section 466(b)'' and 
                                        inserting ``subsection (b)''; 
                                        and
                                    (III) in subparagraph (C), by 
                                striking ``noncustodial'' each place it 
                                appears and inserting ``obligated''.
                    (B) ERISA.--Section 609(a)(5)(C) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1169(a)(5)(C)) is amended by striking ``noncustodial'' 
                each place it appears.
                    (C) State or local governmental group health 
                plans.--Section 401(e)(2) of the Child Support 
                Performance and Incentive Act of 1998 (29 U.S.C. 1169 
                note) is amended, in the matter preceding subparagraph 
                (A), by striking ``who is a noncustodial parent of the 
                child''.
                    (D) Church plans.--Section 401(f)(5)(C) of the 
                Child Support Performance and Incentive Act of 1998 (29 
                U.S.C. 1169 note) is amended by striking 
                ``noncustodial'' each place it appears.
    (b) Enforcement of Medical Support Requirements.--Section 452(f) 
(42 U.S.C. 652(f)), as amended by subsection (a)(2)(A)(i), is amended 
by inserting after the first sentence the following: ``A State agency 
administering the program under this part is authorized to enforce 
medical support against a custodial parent whenever health care 
coverage is available to the custodial parent at a reasonable cost, 
notwithstanding any provision of this part (other than this sentence) 
that might be construed to limit or bar such enforcement actions.''.
    (c) Definition of Medical Support.--Section 452(f) (42 U.S.C. 
652(f)), as amended by subsections (a)(2)(A)(i) and (b), is amended by 
adding at the end the following: ``For purposes of this part, the term 
`medical support' may include health care coverage, such as coverage 
under a health insurance plan (including payment of costs of premiums, 
co-payments, and deductibles) and payment for medical expenses incurred 
on behalf of a child.''.
    (d) Effective Date.--Subject to section 701(b), the amendments made 
by this section shall apply to child support orders issued or amended 
after the date of enactment of this Act.

SEC. 321. NOTICE TO STATE CHILD SUPPORT ENFORCEMENT AGENCY FROM HEALTH 
              CARE PLAN ADMINISTRATOR UNDER CERTAIN CIRCUMSTANCES WHEN 
              A CHILD LOSES HEALTH CARE COVERAGE.

    (a) ERISA.--Section 606(a)(4) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1166(a)(4)) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by adding ``and'' after the comma 
        at the end; and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) in any case in which the qualifying event 
                with respect to which notice to a qualified beneficiary 
                is required by subparagraph (A) or (B) is a qualifying 
                event with respect to the parent of a qualified 
                beneficiary who is an alternative recipient under a 
                qualified medical child support order (as such terms 
                are defined in section 609(a)(2)), the State agency 
                administering the program under part D of title IV of 
                the Social Security Act that issued, or is authorized 
                to enforce, such order,''.
    (b) Internal Revenue Code of 1986.--Section 4980B(f)(6)(D) of the 
Internal Revenue Code of 1986 is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by adding ``and'' after the comma at 
        the end; and
            (3) by inserting after clause (ii) the following:
                            ``(iii) in any case in which the qualifying 
                        event with respect to which notice to a 
                        qualified beneficiary is required by clause (i) 
                        or (ii) is a qualifying event with respect to 
                        the parent of a qualified beneficiary who is an 
                        alternative recipient under a qualified medical 
                        child support order (as such terms are defined 
                        in section 609(a)(2) of the Employee Retirement 
                        Income Security Act of 1974), the State agency 
                        administering the program under part D of title 
                        IV of the Social Security Act which issued, or 
                        is authorized to enforce, such order,''.
    (c) Public Health Service Act.--Section 2206(4) of the Public 
Health Service Act (42 U.S.C. 300bb-6(4)) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by adding ``and'' after the comma 
        at the end; and
            (3) by inserting after subparagraph (B) the following:
                    ``(C) in any case in which the qualifying event 
                with respect to which notice to a qualified beneficiary 
                is required by subparagraph (A) or (B) is a qualifying 
                event with respect to the parent of a qualified 
                beneficiary who is an alternative recipient (as defined 
                in paragraph (4)(B) of section 401(e) of the Child 
                Support Performance and Incentive Act of 1998) under a 
                National Medical Support Notice issued in accordance 
                with that section, the State agency issuing, or that is 
                authorized to enforce, such notice,''.
    (d) Effective Date.--The amendments made by this section apply to 
qualifying events occurring on or after the date of enactment of this 
Act.

SEC. 322. AUTHORITY TO CONTINUE STATE PROGRAM FOR MONITORING AND 
              ENFORCEMENT OF CHILD SUPPORT ORDERS.

    The Secretary of Health and Human Services shall not require the 
State of Texas, in operating the program established under part D of 
title IV of the Social Security Act, to apply for a waiver from the 
requirements of section 454(4)(A)(ii) of such Act (42 U.S.C. 
654(4)(A)(ii)) to continue to operate the State's program for 
monitoring and enforcement of a court order without the necessity of a 
written application, as in effect on the date of enactment of this Act. 
Such State may continue to operate such program and expand it to 
additional counties, as the State determines necessary, without the 
necessity of applying for a waiver from the Secretary so long as an 
individual to whom the support is owed and who would otherwise have to 
sign a written application for services under such program has an 
opportunity to decline such services.

SEC. 323. TECHNICAL AMENDMENT RELATING TO INFORMATION COMPARISONS AND 
              DISCLOSURE TO ASSIST IN FEDERAL DEBT COLLECTION.

    (a) In General.--Section 643 of division H of the Consolidated 
Appropriations Act, 2005 (Public Law 108-447) is amended--
            (1) by striking ``Section 653(j)'' and all that follows 
        through ``new paragraph'' and inserting ``Section 453(j) of the 
        Social Security Act (42 U.S.C. 653(j)) is amended by adding at 
        the end the following new paragraph:''; and
            (2) by redesignating the paragraph (7) added to section 
        453(j) of the Social Security Act (42 U.S.C. 653(j)) by the 
        amendment made by such section as paragraph (9).
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of section 643 of division 
H of the Consolidated Appropriations Act, 2005 (Public Law 108-447).

                        TITLE IV--CHILD WELFARE

SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEMONSTRATION PROJECTS.

    Section 1130(a)(2) (42 U.S.C. 1320a-9(a)(2)) is amended by striking 
``2003'' and inserting ``2010''.

SEC. 402. REMOVAL OF COMMONWEALTH OF PUERTO RICO IV-E FUNDS FROM 
              LIMITATION ON PAYMENTS.

    Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by section 
116(b)(2), is amended--
            (1) by striking ``Paragraph (1)'' and inserting the 
        following:
                    ``(A) In general.--Paragraph (1)'';
            (2) in subparagraph (A) (as added by paragraph (1)), by 
        striking ``or 418(a)(4)(B)'' and inserting ``418(a)(4)(B), 
        473A, or, subject to clause (ii) of subparagraph (B), payments 
        to Puerto Rico described in clause (i) of that subparagraph'' 
        before the period; and
            (3) by adding at the end the following:
                    ``(B) Certain payments to puerto rico.--
                            ``(i) Payments described.--For purposes of 
                        subparagraph (A), payments described in this 
                        subparagraph are payments made to Puerto Rico 
                        under section 474 for each of fiscal years 2007 
                        through 2010 that exceed the total amount of 
                        payments made to Puerto Rico under that section 
                        for fiscal year 2003.
                            ``(ii) Limitation.--The total amount of 
                        payments to Puerto Rico described in clause (i) 
                        that are disregarded under subparagraph (A) may 
                        not exceed $6,250,000 for each of fiscal years 
                        2007 through 2010.''.

SEC. 403. AUTHORITY 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 or tribal organization (as defined in 
        section 479B(e)) or an intertribal consortium if the Indian 
        tribe, tribal organization, or consortium (i) is operating a 
        program pursuant to section 479B, (ii) has a cooperative 
        agreement with a State pursuant to section 479B(c), or (iii) 
        submits to the Secretary a description of the arrangements 
        (jointly developed or developed in consultation with the State) 
        made by the Indian tribe, tribal organization, 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) Application.--Except as provided in subsection (b), this part 
shall apply to an Indian tribe or tribal organization that elects to 
operate a program under this part in the same manner as this part 
applies to a State.
    ``(b) Modification of Plan Requirements.--
            ``(1) Service area; standards.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case of an Indian tribe or tribal organization 
                submitting a plan for approval under section 471, the 
                plan shall--
                            ``(i) in lieu of the requirement of section 
                        471(a)(3), identify the service area or areas 
                        and population to be served by the Indian tribe 
                        or tribal organization; and
                            ``(ii) in lieu of the requirement of 
                        section 471(a)(10), provide for the approval of 
                        foster homes pursuant to tribal standards and 
                        in a manner that ensures the safety of, and 
                        accountability for, children placed in foster 
                        care.
                    ``(B) Special rule.--With respect to an Indian 
                tribe located in the State of Alaska--
                            ``(i) clause (ii) of subparagraph (A) shall 
                        not apply; and
                            ``(ii) the requirement of section 
                        471(a)(10) shall apply to a plan submitted by 
                        such tribe.
            ``(2) Determination of federal share.--
                    ``(A) Per capita income.--
                            ``(i) In general.--For purposes of 
                        determining the Federal medical assistance 
                        percentage applicable to an Indian tribe or 
                        tribal organization under paragraphs (1) and 
                        (2) of section 474(a), the calculation of an 
                        Indian tribe's or tribal organization's per 
                        capita income shall be based upon the service 
                        population of the Indian tribe or tribal 
                        organization as defined in its plan in 
                        accordance with paragraph (1)(A).
                            ``(ii) Consideration of other 
                        information.--An Indian tribe or tribal 
                        organization may submit to the Secretary such 
                        information as the Indian tribe or tribal 
                        organization considers relevant to the 
                        calculation of the per capita income of the 
                        Indian tribe or tribal organization, and the 
                        Secretary shall consider such information 
                        before making the calculation.
                    ``(B) Administrative expenditures.--The Secretary 
                shall, by regulation, determine the proportions to be 
                paid to Indian tribes and tribal organizations pursuant 
                to section 474(a)(3), except that in no case shall an 
                Indian tribe or tribal organization receive a lesser 
                proportion than the corresponding amount specified for 
                a State in that section.
                    ``(C) Sources of non-federal share.--An Indian 
                tribe or tribal organization may use Federal or State 
                funds to match payments for which the Indian tribe or 
                tribal organization is eligible under section 474.
            ``(3) Modification of other requirements.--Upon the request 
        of an Indian tribe, tribal organization, or a consortia of 
        tribes or tribal organizations, the Secretary may modify any 
        requirement under this part if, after consulting with the 
        Indian tribe, tribal organization, or consortia of tribes or 
        tribal organizations, the Secretary determines that 
        modification of the requirement would advance the best 
        interests and the safety of children served by the Indian 
        tribe, tribal organization, or consortia of tribes or tribal 
        organizations.
            ``(4) Consortium.--The participating Indian tribes or 
        tribal organizations of an intertribal consortium may develop 
        and submit a single plan under section 471 that meets the 
        requirements of this section.
    ``(c) Cooperative Agreements.--An Indian tribe, tribal 
organization, 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, tribal 
organization, 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) Regulations.--Not later than 1 year after the date of 
enactment of this section, the Secretary shall, in full consultation 
with Indian tribes and tribal organizations, promulgate regulations to 
carry out this section.
    ``(e) Definitions of Indian Tribe; Tribal Organizations.--In this 
section, the terms `Indian tribe' and `tribal organization' have the 
meanings given those terms in subsections (e) and (l) of section 4 of 
the Indian Self-Determination and Education Assistance Act (25 U.S.C. 
450b), respectively, except that, with respect to the State of Alaska, 
the term `Indian tribe' has the meaning given that term in section 
419(4)(B).''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2006, without regard to whether regulations to 
implement such amendments have been promulgated as of such date.

SEC. 404. TECHNICAL CORRECTION.

    Section 1130(b)(1) (42 U.S.C. 1320a-9(b)(1)) is amended by striking 
``422(b)(9)'' and inserting ``422(b)(10)''.

                 TITLE V--SUPPLEMENTAL SECURITY INCOME

SEC. 501. 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. Any review by the Commissioner of Social 
Security of a State agency determination under this paragraph shall be 
made before any action is taken to implement the determination.
    ``(2)(A) In carrying out paragraph (1), the Commissioner of Social 
Security shall review--
            ``(i) with respect to fiscal year 2006, at least 25 percent 
        of all determinations referred to in paragraph (1) that are 
        made in such fiscal year; and
            ``(ii) with respect to each of fiscal years 2006 through 
        2015, at least 50 percent of all such determinations that are 
        made in each such fiscal year.
    ``(B) In conducting reviews pursuant to subparagraph (A), the 
Commissioner of Social Security shall, to the extent feasible, select 
for review those determinations which the Commissioner of Social 
Security identifies as being the most likely to be incorrect.''.

SEC. 502. TEMPORARY EXPANSION OF LENGTH OF TIME-LIMITED ELIGIBILITY OF 
              QUALIFIED ALIENS FOR SUPPLEMENTAL SECURITY INCOME 
              BENEFITS.

    (a) In General.--During the period described in subsection (b), 
subsection (a)(2)(A) of section 402 of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612) shall be 
applied to the program described in subsection (a)(3)(A) of such 
section by substituting ``9 years'' for ``7 years''.
    (b) Period Described.--For purposes of subsection (a), the period 
described in this subsection is the period that begins on the first day 
of the month in which this Act is enacted and ends on September 30, 
2008.
    (c) Effective Date.--This section shall be effective with respect 
to benefits payable under the program described in section 402(a)(3)(A) 
of the Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996 (8 U.S.C. 1612(a)(3)(A)) for months occurring during the period 
described in subsection (b).

               TITLE VI--TRANSITIONAL MEDICAL ASSISTANCE

SEC. 601. EXTENSION AND SIMPLIFICATION OF THE TRANSITIONAL MEDICAL 
              ASSISTANCE PROGRAM (TMA).

    (a) Option of Continuous Eligibility for 12 Months; Option of 
Continuing Coverage for Up to an Additional Year.--
            (1) Option of continuous eligibility for 12 months by 
        making reporting requirements optional.--Section 1925(b) (42 
        U.S.C. 1396r-6(b)) is amended--
                    (A) in paragraph (1), by inserting ``, at the 
                option of a State,'' after ``and which'';
                    (B) in paragraph (2)(A), by inserting ``Subject to 
                subparagraph (C):'' after ``(A) Notices.--'';
                    (C) in paragraph (2)(B), by inserting ``Subject to 
                subparagraph (C):'' after ``(B) Reporting 
                requirements.--'';
                    (D) by adding at the end the following:
                    ``(C) State option to waive notice and reporting 
                requirements.--A State may waive some or all of the 
                reporting requirements under clauses (i) and (ii) of 
                subparagraph (B). Insofar as it waives such a reporting 
                requirement, the State need not provide for a notice 
                under subparagraph (A) relating to such requirement.''; 
                and
                    (E) in paragraph (3)(A)(iii), by inserting ``the 
                State has not waived under paragraph (2)(C) the 
                reporting requirement with respect to such month under 
                paragraph (2)(B) and if'' after ``6-month period if''.
            (2) State option to extend eligibility for low-income 
        individuals for up to 12 additional months.--Section 1925 (42 
        U.S.C. 1396r-6) is further amended--
                    (A) by redesignating subsections (c) through (f) as 
                subsections (d) through (g), respectively; and
                    (B) by inserting after subsection (b) the 
                following:
    ``(c) State Option of Up to 12 Months of Additional Eligibility.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, each State plan approved under this title may 
        provide, at the option of the State, that the State shall offer 
        to each family which received assistance during the entire 6-
        month period under subsection (b) and which meets the 
        applicable requirement of paragraph (2), in the last month of 
        the period the option of extending coverage under this 
        subsection for the succeeding period not to exceed 12 months.
            ``(2) Income restriction.--The option under paragraph (1) 
        shall not be made available to a family for a succeeding period 
        unless the State determines that the family's average gross 
        monthly earnings (less such costs for such child care as is 
        necessary for the employment of the caretaker relative) as of 
        the end of the 6-month period under subsection (b) does not 
        exceed 185 percent of the official poverty line (as defined by 
        the Office of Management and Budget, and revised annually in 
        accordance with section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981) applicable to a family of the size 
        involved.
            ``(3) Application of extension rules.--The provisions of 
        paragraphs (2), (3), (4), and (5) of subsection (b) shall apply 
        to the extension provided under this subsection in the same 
        manner as they apply to the extension provided under subsection 
        (b)(1), except that for purposes of this subsection--
                    ``(A) any reference to a 6-month period under 
                subsection (b)(1) is deemed a reference to the 
                extension period provided under paragraph (1) and any 
                deadlines for any notices or reporting and the premium 
                payment periods shall be modified to correspond to the 
                appropriate calendar quarters of coverage provided 
                under this subsection; and
                    ``(B) any reference to a provision of subsection 
                (a) or (b) is deemed a reference to the corresponding 
                provision of subsection (b) or of this subsection, 
                respectively.''.
    (b) State Option To Waive Receipt of Medicaid for 3 of Previous 6 
Months To Qualify for TMA.--Section 1925(a)(1) (42 U.S.C. 1396r-
6(a)(1)) is amended by adding at the end the following: ``A State may, 
at its option, also apply the previous sentence in the case of a family 
that was receiving such aid for fewer than 3 months, or that had 
applied for and was eligible for such aid for fewer than 3 months, 
during the 6 immediately preceding months described in such 
sentence.''.
    (c) Extension of Sunset for TMA.--
            (1) In general.--Subsection (g) of section 1925 (42 U.S.C. 
        1396r-6), as so redesignated under subsection (a)(2)(A), is 
        further redesignated as subsection (i) and is amended by 
        striking ``2003'' and inserting ``2010''.
            (2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C. 
        1396a(e)(1)(B)), as so amended, is amended by striking 
        ``September 30, 2003'' and inserting ``the last date (if any) 
        on which section 1925 applies under subsection (i) of that 
        section''.
    (d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 (42 U.S.C. 1396r-6), as amended by subsections (a)(2)(A) 
and (c)(1), is amended by inserting after subsection (f) the following:
    ``(g) Additional Provisions.--
            ``(1) Collection and reporting of participation 
        information.--Each State shall--
                    ``(A) collect and submit to the Secretary, in a 
                format specified by the Secretary, information on 
                average monthly enrollment and average monthly 
                participation rates for adults and children under this 
                section; and
                    ``(B) make such information publicly available.
        Such information shall be submitted under subparagraph (A) at 
        the same time and frequency in which other enrollment 
        information under this title is submitted to the Secretary. 
        Using such information, the Secretary shall submit to Congress 
        annual reports concerning such rates.''.
    (e) Coordination of Work.--Section 1925(g) (42 U.S.C. 1396r-6(g)), 
as added by subsection (d), is amended by adding at the end the 
following:
            ``(2) Coordination with administration for children and 
        families.--The Administrator of the Centers for Medicare & 
        Medicaid Services, in carrying out this section, shall work 
        with the Assistant Secretary for the Administration for 
        Children and Families to develop guidance or other technical 
        assistance for States regarding best practices in guaranteeing 
        access to transitional medical assistance under this 
        section.''.
    (f) Elimination of TMA Requirement for States That Extend Coverage 
to Children and Parents Through 185 Percent of Poverty.--
            (1) In general.--Section 1925 (42 U.S.C. 1396r-6) is 
        amended by inserting after subsection (g), as added by 
        subsection (d), the following:
    ``(h) Provisions Optional for States That Extend Coverage to 
Children and Parents Through 185 Percent of Poverty.--A State may meet 
(but is not required to meet) the requirements of subsections (a) and 
(b) if it provides for medical assistance under section 1931 to 
families (including both children and caretaker relatives) the average 
gross monthly earning of which (less such costs for such child care as 
is necessary for the employment of a caretaker relative) is at or below 
a level that is at least 185 percent of the official poverty line (as 
defined by the Office of Management and Budget, and revised annually in 
accordance with section 673(2) of the Omnibus Budget Reconciliation Act 
of 1981) applicable to a family of the size involved.''.
            (2) Conforming amendments.--Section 1925 (42 U.S.C. 1396r-
        6) is amended, in subsections (a)(1) and (b)(1), by inserting 
        ``, but subject to subsection (h),'' after ``Notwithstanding 
        any other provision of this title,'' each place it appears.
    (g) Requirement of Notice for All Families Losing TANF.--Subsection 
(a)(2) of section 1925 (42 U.S.C. 1396r-6) is amended by adding at the 
end the following flush sentences:
        ``Each State shall provide, to families whose aid under part A 
        or E of title IV has terminated but whose eligibility for 
        medical assistance under this title continues, written notice 
        of their ongoing eligibility for such medical assistance. If a 
        State makes a determination that any member of a family whose 
        aid under part A or E of title IV is being terminated is also 
        no longer eligible for medical assistance under this title, the 
        notice of such determination shall be supplemented by a 1-page 
        notification form describing the different ways in which 
        individuals and families may qualify for such medical 
        assistance and explaining that individuals and families do not 
        have to be receiving aid under part A or E of title IV in order 
        to qualify for such medical assistance. Such notice shall 
        further be supplemented by information on how to apply for 
        child health assistance under the State children's health 
        insurance program under title XXI and how to apply for medical 
        assistance under this title.''.
    (h) Extending Use of Outstationed Workers To Accept Applications 
for Transitional Medical Assistance.--Section 1902(a)(55) (42 U.S.C. 
1396a(a)(55)) is amended by inserting ``and under section 1931'' after 
``(a)(10)(A)(ii)(IX)''.
    (i) Effective Dates.--
            (1) In general.--Except as provided in this subsection, the 
        amendments made by this section shall apply to calendar 
        quarters beginning on or after October 1, 2005, without regard 
        to whether or not final regulations to carry out such 
        amendments have been promulgated by such date.
            (2) Notice.--The amendment made by subsection (g) shall 
        take effect 6 months after the date of enactment of this Act.
            (3) Delay permitted for state plan amendment.--In the case 
        of a State plan for medical assistance under title XIX of the 
        Social Security Act which the Secretary of Health and Human 
        Services determines requires State legislation (other than 
        legislation appropriating funds) in order for the plan to meet 
        the additional requirements imposed by the amendments made by 
        this section, the State plan shall not be regarded as failing 
        to comply with the requirements of such title solely on the 
        basis of its failure to meet these additional requirements 
        before the first day of the first calendar quarter beginning 
        after the close of the first regular session of the State 
        legislature that begins after the date of enactment of this 
        Act. For purposes of the previous sentence, in the case of a 
        State that has a 2-year legislative session, each year of such 
        session shall be deemed to be a separate regular session of the 
        State legislature.

                       TITLE VII--EFFECTIVE DATE

SEC. 701. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, this Act 
and the amendments made by this Act shall take effect on October 1, 
2005.
    (b) Exception.--In the case of a State plan under part A or D of 
title IV of the Social Security Act which the Secretary of Health and 
Human Services determines requires State legislation in order for the 
plan to meet the additional requirements imposed by the amendments made 
by this Act, the effective date of the amendments imposing the 
additional requirements shall be 3 months after the first day of the 
first calendar quarter beginning after the close of the first regular 
session of the State legislature that begins after the date of 
enactment of this Act. For purposes of the preceding sentence, in the 
case of a State that has a 2-year legislative session, each year of the 
session shall be considered to be a separate regular session of the 
State legislature.

SEC. 702. EXTENSION THROUGH REMAINDER OF FISCAL YEAR 2005.

    (a) In General.--Except as otherwise provided in this Act and the 
amendments made by this Act, activities authorized by part A of title 
IV of the Social Security Act, and by sections 429A, 510, 1108(b), 
1130(a), and 1925 of such Act, shall continue through September 30, 
2005, in the manner authorized for fiscal year 2004, notwithstanding 
section 1902(e)(1)(A) of such Act, and out of any money in the Treasury 
of the United States not otherwise appropriated, there are hereby 
appropriated such sums as may be necessary for such purpose. Grants and 
payments may be made pursuant to this authority through the fourth 
quarter of fiscal year 2005 at the level provided for such activities 
through the fourth quarter of fiscal year 2004, except that in the case 
of section 403(a)(4) of such Act the level of authority shall be $0.
    (b) Effective Date.--Subsection (a) shall take effect on the date 
of enactment of this Act.




                                                        Calendar No. 60

109th CONGRESS

  1st Session

                                 S. 667

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             March 17, 2005

                 Read twice and placed on the calendar`