Improving Employment Outcomes of TANF Recipients Act

To provide payments to States for increasing the employment, job retention, and earnings of former TANF recipients. 1. Short title This Act may be cited as the Improving Employment Outcomes of TANF Recipients Act 2. Improving economic mobility of TANF recipients Section 403(a)(4) of the Social Security Act ( 42 U.S.C. 603(a)(4) (4) Improving economic mobility of TANF recipients (A) Measuring state performance (i) In general Each State, in consultation with the Secretary, shall collect and report information necessary to measure the level of performance of the State for each indicator described in clause (ii), for fiscal year 2018 and each fiscal year thereafter, and the Secretary shall use the information collected for fiscal year 2018 to establish the baseline level of performance of each State for each such indicator. (ii) Indicators The indicators described in this clause, for a fiscal year, are the following: (I) The employment percentage for the fiscal year, which is equal to— (aa) the number of families receiving assistance under the State program funded under this part or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal year, exited from the program, and who, during the 2nd quarter after the exit, include an adult in unsubsidized employment; divided by (bb) the number of families who received assistance from the program in the exit quarter referred to in subclause (aa). (II) The retention percentage for the fiscal year, which is equal to— (aa) the number of families receiving assistance from the State program funded under this part or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal year, exited from the program, and who, during the 4th quarter after the exit, include an adult in unsubsidized employment; divided by (bb) the number of families who received assistance under the program in the exit quarter referred to in subclause (aa). (III) The advancement measure for the fiscal year, which is equal to the median earnings of the adults receiving assistance under the State program funded under this part or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(ii)) who, during a quarter in the fiscal year, exited from the program, and who during the 2nd quarter after the exit, are in unsubsidized employment. (iii) Agreement on requisite performance level for each indicator (I) Fiscal years 2019 2020 The State shall reach agreement with the Secretary on the requisite level of performance for each indicator described in clause (ii), for each of fiscal years 2019 and 2020. In establishing the requisite levels of performance, the State and the Secretary shall— (aa) take into account how the levels involved compare with the levels established for other States; (bb) ensure the levels involved are adjusted, using the objective statistical model referred to in clause (v), based on— (AA) the differences among States in actual economic conditions, including differences in unemployment rates and job losses or gains in particular industries; and (BB) the characteristics of participants on entry into the program, including indicators of prior work history, lack of educational or occupational skills attainment, or other factors that may affect employment and earnings; and (cc) take into account the extent to which the levels involved promote continuous improvement in performance by each State. (II) Fiscal year 2021 The State shall reach agreement with the Secretary, before fiscal year 2021, on the requisite level of performance for each indicator described in clause (ii), for fiscal year 2021, which shall be established in accordance with subclause (I) of this clause. (iv) Revisions based on economic conditions and individuals receiving assistance during the fiscal year The Secretary shall, in accordance with the objective statistical model referred to in clause (v), revise the requisite levels of performance for a fiscal year and a State to reflect the actual economic conditions and characteristics of participants during that fiscal year in the State. (v) Statistical adjustment model The Secretary shall use an objective statistical model to make adjustments to the requisite levels of performance for actual economic conditions and characteristics of participants, and shall consult with the Secretary of Labor to develop a model that is the same as or similar to the model described in section 116(b)(3)(viii) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3141 (B) Report on state performance (i) In general Not later than October 1, 2017, the Secretary shall develop a template which each State shall use to report on outcomes achieved under the State program funded under this part or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)). (ii) Contents Each such report shall include— (I) the number of individuals who exited the program during the year, and their reasons for doing so, including a separate accounting of the number of work-eligible individuals (as so defined) who exited the program during the year and their reasons for doing so; (II) the characteristics of the individuals who exited the program during the year, including information on the length of time the individual received assistance under the program, the educational level of the individual, and the earnings of the individual in the 4 quarters preceding the exit; and (III) information specifying the levels of performance achieved on each indicator described in subparagraph (A)(ii). (iii) Publication Not later than September 30 of fiscal year 2020 and of each succeeding fiscal year, the Secretary shall make available electronically to the public each report submitted under this subparagraph during the fiscal year. (C) Regulations The Secretary, in consultation with the Secretary of Labor, shall prescribe such regulations as may be necessary to provide for the measurement of State performance on the indicators described in this paragraph. . 3. Effective date The amendments made by this Act shall take effect on October 1, 2016. Amend the title so as to read: A bill to increase the employment, job retention, and earnings of former TANF recipients. June 28, 2016 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Improving Employment Outcomes of TANF Recipients Act (Sec. 2) This bill amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to replace the current program of bonus grants for high performing states with a program requiring each state to collect and report information necessary to measure the state's level of performance for FY2018 and each ensuing fiscal year for each employment percentage, retention percentage, and earnings advancement measure for adults in unsubsidized employment after exiting the TANF program (indicators). The Department of Health and Human Services (HHS) shall use the information collected for FY2018 to establish the baseline level of performance of each state for each indicator. The state shall reach agreement with HHS: (1) on the requisite level of performance for each indicator for FY2019-FY2020; and (2) before FY2021 on the requisite level of performance for each indicator for that fiscal year. HHS shall revise the requisite levels of performance for a fiscal year and a state to reflect the actual economic conditions and characteristics of participants. HHS shall use an objective statistical model to make such performance level adjustments, and shall consult with the Department of Labor to develop a statistical adjustment model similar to one described in the Workforce Innovation and Opportunity Act. HHS shall also develop a template which each state shall use to report on outcomes achieved under the new program or any other state program funded with qualified state expenditures.