Welfare Reform Act of 2014

To help individuals receiving assistance under means-tested welfare programs obtain self-sufficiency, to provide information on total spending on means-tested welfare programs, to provide an overall spending limit on means-tested welfare programs, and for other purposes. 1. Short title This Act may be cited as the Welfare Reform Act of 2014 2. Table of contents The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I—Modifications to supplemental nutrition assistance program Sec. 101. Work requirements. Sec. 102. Termination of benefit increase. TITLE II—Reporting of means-tested welfare spending in President’s budget submission Sec. 201. Additional information in President’s budget submission. TITLE III—Aggregate cap for means-tested welfare spending Sec. 301. Definition of means-tested welfare spending. Sec. 302. Reports to budget committees. Sec. 303. Content of concurrent resolutions on the budget. Sec. 304. Allocations of means-tested welfare spending. Sec. 305. Reconciliation. TITLE IV—Grants to promote self-sufficiency Sec. 401. Grants to States. TITLE V—Prohibition on funding of abortion Sec. 501. Prohibition on funding for abortions. Sec. 502. Prohibition on funding for health benefits plans that cover abortion. Sec. 503. Prohibition on tax benefits relating to abortion. Sec. 504. Construction relating to separate coverage. Sec. 505. Construction relating to the use of non-Federal funds for health coverage. Sec. 506. Treatment of abortions related to rape, incest, or preserving the life of the mother. I Modifications to supplemental nutrition assistance program 101. Work requirements (a) Declaration of policy Section 2 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 Congress further finds that it should also be the purpose of the supplemental nutrition assistance program to increase employment, to encourage healthy marriage, and to promote prosperous self-sufficiency, which means the ability of households to maintain an income above the poverty level without services and benefits from the Federal Government. (b) Definition of food Section 3(k) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012(k) , except that a food, food product, meal, or other item described in this subsection shall be considered a food under this Act only if it is a bare essential (as determined by the Secretary) (c) Other definitions Section 3 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012 (w) Able-Bodied, work-Capable adult (1) In general The term able-bodied, work-capable adult (A) is more than 18, and less than 63, years of age; (B) is not physically or mentally incapable of work; and (C) is not the full-time caretaker of a disabled adult dependent. (2) Physically or mentally incapable of work For purposes of paragraph (1)(B), the term physically or mentally incapable of work (A) currently receives benefits under the supplemental security income program established under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq. (B) has been medically certified as physically or mentally incapable of work and who has a credible pending application for enrollment in the supplemental security income program established under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.) or another program that provides recurring benefits to individuals because the individual is disabled and unable to work. (x) Approved offsite work activation The term approved offsite work activation (1) online job preparation and training programs that are approved and monitored by the State agency; or (2) job search activities that are approved by the State agency and monitored by the State to ensure that an appropriate number of job applications and employer contacts are performed. (y) Family head The term family head (1) a biological parent who is lawfully present in the United States and resides within a household with 1 or more dependent children who are the biological offspring of the parent; or (2) in the absence of a biological parent, a step parent, adoptive parent, guardian, or adult relative who resides with and provides care to the 1 or more children and is lawfully present in the United States. (z) Family unit The term family unit (1) an adult residing without dependent children; (2) a single-headed family with dependent children; or (3) a married couple family with dependent children. (aa) Family with dependent children (1) In general The term family with dependent children (2) Multiple families in a household There may be more than 1 family with dependent children in a single household. (bb) Married couple family with dependent children The term married couple family with dependent children (cc) Married spouse of the family head The term married spouse of the family head (1) resides with the family head and dependent children; and (2) is lawfully present in the United States. (dd) Member of a family The term member of a family (ee) Onsite work activation (1) In general The term onsite work activation (A) supervised job search; (B) community service activities; (C) education and job training for individuals who are family heads or married spouses of family heads; (D) workfare under section 20; or (E) drug or alcohol treatment. (2) Supervised job search For purposes of paragraph (1)(A), the term supervised job search (A) The job search occurs at an official location where the presence and activity of the recipient can be directly observed, supervised, and monitored. (B) The recipient's entry, time onsite, and exit from the official job search location are recorded in a manner that prevents fraud. (C) The recipient is expected to remain and undertake job search activities at the job search center. (D) The quantity of time the recipient is observed and monitored engaging in job search at the official location is recorded for purposes of compliance with section 29. (ff) Penalty period (1) In general The term penalty period (2) First penalty period The first penalty period of each fiscal year shall be the 6-month period beginning on October 1. (3) Second penalty period The second penalty period of each fiscal year shall be the 6-month period beginning on April 1. (4) Adjustment The entire supplemental nutrition assistance program 6-month funding allotment of a State during a penalty period shall be adjusted in response to the performance of the work activation program of the State during previous performance measurement periods. (gg) Performance measurement period (1) In general The term performance measurement period (2) First performance measurement period The first performance measurement period of each fiscal year shall be the 6-month period beginning on October 1. (3) Second performance measurement period The second performance measurement period of each fiscal year shall be the 6-month period beginning on April 1. (hh) Program-Eligible adult without dependent children The term program-eligible adult without dependent children (1) receives program benefits for 1 month; and (2) has maintained less than 120 hours of paid employment during that month. (ii) Program-Eligible family unit The term program-eligible family unit (1) a program-eligible adult without dependent children; (2) a program-eligible single-headed family with dependent children; or (3) a program-eligible married couple with dependent children. (jj) Program-Eligible married couple with dependent children The term program-eligible married couple with dependent children (1) receives program benefits for 1 month; and (2) has maintained less than 120 hours of paid employment between the family head and the married spouse of the family head, summed together and counted jointly, during the month. (kk) Program-Eligible single-Headed family with dependent children The term program-eligible single-headed family with dependent children (1) receives program benefits for 1 month; and (2) has a family head who has maintained less than 120 hours of paid employment during that month. (ll) Single-Headed family with dependent children The term single-headed family with dependent children (1) contains a family head residing with the family; but (2) does not have a married spouse of the family head residing with the family. (mm) State share of work-Capable family units in calendar year 2010 The term State share of work-capable family units in calendar year 2010 (1) the average monthly number of work-capable family units in the State during calendar year 2010; by (2) the average monthly number of work-capable family units in all 50 States and the District of Columbia during calendar year 2010. (nn) Total family units eligible for participation in work activation The term total family units eligible for participation in work activation (1) program-eligible adults without dependent children; (2) program-eligible single-headed families with dependent children; and (3) program-eligible married couples with dependent children. (oo) Work activation The term work activation (1) onsite work activation; and (2) approved offsite work activation. (pp) Work-Capable adult without dependent children The term work-capable adult without dependent children (1) is an able-bodied, work-capable adult; and (2) is not a family head or the married spouse of a family head. (qq) Work-Capable married couple family with dependent children The term work-capable married couple family with dependent children (1) the family head; or (2) the married spouse of the family head. (rr) Work-Capable single-Headed family with dependent children The term work-capable single-headed family with dependent children (ss) Program-Eligible family unit with dependent children The term program eligible family unit with dependent children (1) program eligible married couples with dependent children; and (2) program-eligible single-headed families with dependent children. (tt) Ratio of caseload decline among work-Eligible adults without dependent children (1) Definition The term ratio of caseload decline among work eligible adults without dependent children (A) The remainder of— (i) the average monthly number of work eligible adults without dependent children who received benefits in the State in fiscal year 2014; minus (ii) the average monthly number of work eligible adults without dependent children who received benefits in the State in the given fiscal year. (B) The average monthly number of work eligible adults without dependent children who received benefits in the State in fiscal year 2014. (2) Limitation If the average monthly number of work eligible adults without dependent children who received benefits in the State in the given fiscal year is greater than the average monthly number of work eligible adults without dependent children who received benefits in the State in fiscal year 2014, then the ratio of caseload decline among work eligible adults without dependent children for the given fiscal year shall be zero. (uu) Contingency factor The term contingency factor (1) the ratio of caseload decline among work eligible adults without dependent children in the State in the previous fiscal year; multiplied by (2) fifty. . (d) Conditions of participation Section 6 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015 (d) Conditions of participation (1) Work requirements (A) In general No able-bodied, work-capable adult shall be eligible to participate in the supplemental nutrition assistance program if the individual— (i) refuses, at the time of application and every 12 months thereafter, to register for employment in a manner prescribed by the Secretary; (ii) refuses without good cause to accept an offer of employment, at a site or plant not subject to a strike or lockout at the time of the refusal, at a wage not less than the higher of— (I) the applicable Federal or State minimum wage; or (II) 80 percent of the wage that would have applied had the minimum hourly rate under section 6(a)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(a)(1) (iii) refuses without good cause to provide a State agency with sufficient information to allow the State agency to determine the employment status or the job availability of the individual; or (iv) voluntarily— (I) quits a job; or (II) reduces work effort and, after the reduction, is working less than 30 hours per week, unless another adult in the same family unit increases employment at the same time by an amount that is at least equal to the reduction in work effort by the first adult. (B) Family unit ineligibility If an able-bodied, work-capable adult is ineligible to participate in the supplemental nutrition assistance program because of subparagraph (A), no other member of the family unit to which that adult belongs shall be eligible to participate. (C) Duration of ineligibility An able-bodied, work-capable adult who becomes ineligible under subparagraph (A), and members of the family unit who become ineligible under subparagraph (B), shall remain ineligible for 3 months after the date on which ineligibility began. (D) Restoration of eligibility At the end of the 3-month period of ineligibility under subparagraph (c), members of a work-capable family unit may have their eligibility to participate in the supplemental nutrition assistance program restored, if— (i) the family unit is no longer a work-capable family unit; or (ii) the adult members of the family unit begin and maintain any combination of paid employment and work activation sufficient to meet the appropriate standards for resumption of benefits in section 29(c)(2). (2) Strike against a government For the purpose of subparagraph (A)(iv), an employee of the Federal Government, a State, or a political subdivision of a State, who is dismissed for participating in a strike against the Federal Government, the State, or the political subdivision of the State shall be considered to have voluntarily quit without good cause. (3) Striking workers ineligible (A) In general Except as provided in subparagraphs (B) and (C) and notwithstanding any other provision of law, no member of a family shall be eligible to participate in the supplemental nutrition assistance program at any time that any able-bodied, work-capable adult member of the household is on strike as defined in section 501 of the Labor Management Relations Act, 1947 ( 29 U.S.C. 142 29 U.S.C. 152 (B) Prior eligibility (i) In general Subject to clause (ii), a family unit shall not lose eligibility to participate in the supplemental nutrition assistance program as a result of 1 of the members of the family unit going on strike if the household was eligible immediately prior to the strike. (ii) No increased allotment A family unit described in clause (i) shall not receive an increased allotment as the result of a decrease in the income of the 1 or more striking members of the household. (C) Refusal to accept employment Ineligibility described in subparagraph (A) shall not apply to any family unit that does not contain a member on strike, if any of the members of the family unit refuses to accept employment at a plant or site because of a strike or lockout. . (e) Eligibility of students with dependent children Section 6(e) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015(e) (8) is enrolled full-time in an institution of higher education, as determined by the institution, and— (A) is a single parent with responsibility for the care of a dependent child under 12 years of age; or (B) is a family head or married spouse of a family head in a married couple family with dependent children and has a dependent child under age 12 residing in the home. . (f) Work requirement Section 6 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015 (o) Fulfillment of employment and work activation requirements (1) In general If 1 or more adults within a program-eligible family unit are required by the State agency to participate in work activation under section 29, no member of the family unit shall be eligible for supplemental nutrition assistance benefits unless the relevant 1 or more adults fully comply with the work activation standards. (2) Sanctions and resumption of benefits If 1 or more adults within a program-eligible family unit who are required by the State agency to participate in work activation under section 29 during a given month fail to comply with the work activation standards, benefits for all members of the family unit— (A) shall be terminated in accordance with section 29(c)(1); and (B) may be resumed upon compliance with section 29(c)(2). . (g) Exclusion Section 6 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015 (r) Minor children No child less than age 18 years of age may participate in the supplemental nutrition assistance program unless the child is a member of a family with dependent children and resides with an adult who is— (1) the family head of the same family of which the child is also a member; (2) eligible to participate, and participating, in the supplemental nutrition assistance program as a member of the same household as the child; and (3) lawfully residing, and eligible to work, in the United States. . (h) Hearing and determination Section 11(e)(10) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2020(e)(10) : Provided hearing; (i) Work requirements and activation program The Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. 29. Work requirements and activation program (a) Work activation standards (1) In general Subject to paragraph (3), a family unit with adult members that is required to participate in work activation under subsection (e) during a full month of participation in the supplemental nutrition assistance program shall fulfill the following levels of work activation during that month: (A) Work activation performance level for program-eligible adult without dependent children Each program-eligible adult without dependent children who is required to participate in work activation by a State agency under subsection (e) for a particular month shall be required to perform a minimum of 36 hours of work activation for that month, including at least— (i) a minimum of 16 hours of supervised onsite work activation; and (ii) a minimum of 20 additional hours of— (I) onsite work activation; (II) approved offsite work activation; or (III) a combination of both. (B) Work activation performance levels for program-eligible single parent families with dependent children Work-capable adult family heads in program-eligible single parent families with dependent children who are required by a State agency to participate in work activation under subsection (e) shall be required to perform a minimum of 72 hours of work activation per month, including at least— (i) a minimum of 32 hours of supervised onsite work activation; and (ii) a minimum of 40 additional hours of— (I) onsite work activation; (II) approved offsite work activation; or (III) a combination of both. (C) Work activation performance levels for program-eligible married couples with dependent children (i) In general Subject to clause (ii), each program-eligible married couple with dependent children that is required by a State agency to participate in work activation under subsection (e) shall be required to perform a minimum of 72 hours of work activation per month, including at least— (I) a minimum of 32 hours of supervised onsite work activation; and (II) a minimum of 40 additional hours of— (aa) onsite work activation; (bb) approved offsite work activation; or (cc) a combination of both. (ii) Requirements (I) Single joint obligation The 72-hour requirement under clause (i) shall be a single joint obligation for the married couple as a whole in which the activities of both married partners shall be combined together and counted jointly. (II) Options The work activation requirement for a work-capable married couple family with dependent children may be fulfilled by— (aa) 72 or more hours of appropriate activity by the family head; (bb) 72 or more hours of appropriate activity by the married spouse of the family head; or (cc) the combined activity of the family head and married spouse of the family head which when added together equal or exceed 72 hours. (D) No separate work activation requirement Neither the family head nor the married spouse of the family in a married couple family with dependent children shall be subject to a separate work activation requirement as individuals. (2) State option to require greater amounts of work activation At its discretion, a State may require work-capable family units to engage in hours of work activation per month that are greater than the levels specified in paragraph (1), except that the number of hours of work activation required of work-capable married couples with dependent children shall not be greater than the number maximum hours of work activation required of work-capable single parent families with dependent children. (3) Limitation on combined hours of work activation and paid employment (A) In general Notwithstanding subparagraphs (A), (B), and (C) of paragraph (1), a State may count any program-eligible family unit as fulfilling the full engagement requirement of the family unit for a month, for purposes of paragraphs (3) and (4) of subsection (e), if the combined sum of paid employment and work activation by work-capable adults within the family unit in that month equals at least 160 hours. (B) Result of fulfillment If the combined sum of hours of paid employment and work activation by work-capable individuals within a program-eligible family unit is at least 160 hours in a given month— (i) the family unit has fulfilled the Federal work activation standards of the family unit for that month; and (ii) the State agency need not require members of the family unit to perform additional work activation during that month. (b) Pro rata reduction in employment and work activation standard during a partial month (1) In general A program-eligible family unit shall be subject to a pro-rated work activation standard, if the family unit— (A) receives a pro-rated monthly allotment during the initial month of enrollment under section 8(c); and (B) is required by the State to participate in the work activation program during that month. (2) Pro-rated work activation standard For purposes of paragraph (1), the term pro-rated work activation standard (A) the pro-rated monthly allotment received by the household for the partial month under section 8(c); bears to (B) the full allotment the same household would receive for a complete month. (3) Requirement For purposes of fulfilling the pro-rated work activation requirement during an initial month of enrollment in the supplemental nutrition assistance program, only those hours of adult work activation that occurred during the portion of the month in which the family unit was participating in the supplemental nutrition assistance program shall be counted. (c) Sanction for noncompliance by family units (1) Standard (A) In general If 1 or more members of a program-eligible family unit are required to participate in the work activation program under subsection (e) in a calendar month and 1 or more individuals fail to fulfill the work activation standards under subsection (a) or (b) for that month— (i) no member of the family unit shall be eligible to receive supplemental nutrition assistance benefits during the subsequent calendar month; and (ii) except as provided in subparagraph (B), the State agency shall not provide the supplemental nutrition assistance benefit payment for all members of the family unit that otherwise would have been issued at the beginning of the next month. (B) Administrative delay of sanction (i) In general Except as provided in clauses (ii) and (iii), if it is administratively infeasible for the State to not provide the supplemental nutrition assistance benefit that would be issued at the beginning of the first month after the month of noncompliance, the State shall not provide the payment to all members of the family unit that otherwise would have been made at the beginning of the second month after the month of noncompliance. (ii) Deadline The sanction of benefits shall occur not later than 32 days after the end of the month of noncompliance. (iii) Relationship of payments to members of the family unit At least 1 monthly payment to all members of the family unit shall be not provided for each month of noncompliance under subparagraph (A). (2) Resumption of benefits after sanction (A) In general If a family unit has had the monthly benefit of the family unit not provided due to noncompliance with a work activation requirement under paragraph (1), the family unit shall not be eligible to receive future benefits under the supplemental nutrition assistance program until— (i) the 1 or more work-capable members of the family unit have— (I) successfully participated in a work activation program under subsection (e) for at least 4 consecutive, subsequent weeks; and (II) fulfilled the work activation standard for the family unit for that same 4-week period by maintaining an hourly total of participation in work activation that is at least equal to the appropriate monthly totals for hours of participation provided in subsection (a); (ii) the family unit no longer contains any able-bodied, work-capable adults; or (iii) the family unit maintains at least 120 hours of paid employment during the 4-week period. (B) Limitation The resumed benefits provided under subparagraph (A) shall not restore or compensate for the benefits that were not provided due to the sanction imposed under paragraph (1). (d) Work activation is not employment Participation in work activation activities under this section shall not be— (1) considered to be employment; or (2) subject to any law pertaining to wages, compensation, hours, or conditions of employment under any law administered by the Secretary of Labor. (e) Work activation program (1) Program Each State participating in the supplemental nutrition assistance program shall carry out a work activation program. (2) Purpose (A) In general The goals of each work activation program shall be— (i) to encourage and assist able-bodied, work-capable adult recipients of supplemental nutrition assistance to obtain paid employment; (ii) to reduce dependence on government assistance; and (iii) to ensure that able-bodied, work-capable adult recipients of supplemental nutrition assistance make a contribution to society and the taxpayers in exchange for assistance received. (B) Requirement To accomplish the goals described in subparagraph (A), each State shall require able-bodied, work-capable adult recipients of supplemental nutrition assistance who are unemployed or under-employed to engage in work activation. (3) Required State work activation participation rates (A) In general Subject to subparagraph (D), each State that receives supplemental nutrition assistance program funding shall be required to meet, for the work activation programs of the State— (i) a work activation participation rate for work-capable adults without dependent children, as described in subparagraph (B); and (ii) a work activation participation rate for program eligible family units as described in subparagraph (C). (B) Participation rate for work-capable adults without dependent children The average monthly percent of program-eligible work-capable without dependent children who shall be required to maintain full engagement in work activation under subparagraph (A)(i) shall be— (i) for each performance measurement period in fiscal year 2015, 30 percent of all program-eligible adults without dependent children; (ii) for each performance measurement period in fiscal year 2016, 50 percent of all program-eligible adults without dependent children who are eligible for work activation; and (iii) for each performance measurement period in fiscal year 2017 and each subsequent fiscal year, 85 percent of all program-eligible adults without dependent children who are eligible for work activation. (C) Participation rate for program-eligible family units with dependent children (i) Requirements Subject to the limitation in clause (ii), the average monthly percent of program-eligible family units with dependent children that shall be required to maintain full engagement in work activation in a given month shall be— (I) for each performance measurement period in fiscal year 2017, 15 percent of program-eligible family units with dependent children; and (II) for each performance measurement period in fiscal year 2018 and subsequent years, the sum of— (aa) 15 percent of percent of program-eligible family units with dependent children, plus (bb) the percent of program-eligible family units with dependent children that equals the contingency factor for the State for that year. (ii) Limitation Notwithstanding clause (i), no State shall be required to maintain an average monthly rate of full engagement in work activation by program-eligible family units with dependent children, in either performance measurement period in a fiscal year, that exceeds the following: (I) In fiscal year 2017, 15 percent of program-eligible family units with dependent children. (II) In fiscal year 2018, 25 percent of program-eligible family units with dependent children. (III) In fiscal year 2019, 35 percent of program-eligible family units with dependent children. (IV) In fiscal year 2020, 50 percent of program-eligible family units with dependent children. (D) Higher levels of work activation at State discretion Nothing in this law shall be construed to prohibit a State from maintaining levels of work activation that are higher than those specified subparagraph (B) or (C). (4) Counting full engagement in work activation for purposes of measuring State compliance with participation rates (A) In general For purposes of determining the compliance of a State with the participation rate standards in paragraph (3), a State shall count in each month the number of program-eligible family units that maintained full engagement in work activation in that month. (B) Full Engagement (i) In general For purposes of subparagraph (A), a family unit shall be counted as having maintained full engagement in work activation in a given month if the family unit was— (I) a program-eligible family unit that performed sufficient work activation in the month to meet the work activation standards provided in subsection (a) or (b); (II) a family unit that did not qualify for supplemental nutrition assistance benefits in a current month because of a prior sanction but that qualified for a resumption of benefits due to work activation performed in the month that meets the standards provided in subsection (c)(2); or (III) a program-eligible family unit that— (aa) received supplemental nutrition assistance benefits in a given month; (bb) was required by a State agency to participate in work activation in that month; (cc) failed to perform sufficient work activation in that month to meet the standards in subsection (a) or (b); and (dd) was sanctioned by an elimination of supplemental nutrition assistance benefits in the 1 or more immediately succeeding months, in accordance with subsection (c)(1). (ii) Limitation (I) In general For purposes of clause (i)(III), a family unit that was required to participate in work activation but failed to perform sufficient activity to meet the standard shall be counted as having maintained full engagement in work activation only in the first month of noncompliance. (II) Subsequent months Except as provided in clause (i)(II), the family unit shall not be counted as maintaining full engagement in work activation in any subsequent month in which the family unit was subject to the sanction for noncompliance. (C) Benefits previously terminated Except as provided in subparagraph (B)(i)(II) concerning family units that qualify for resumption of benefits, a family unit that does not receive supplemental nutrition assistance benefits in a given month because the benefits of the family unit have been previously terminated in accordance with subsection (c)(1) shall not be counted in that month— (i) as a family unit that has maintained full engagement in work activation; or (ii) as a program-eligible family unit. (5) Penalties for inadequate State performance (A) Requirement (i) In general Beginning in fiscal year 2015 and for each subsequent fiscal year, each State shall count the monthly average number of program-eligible family units that maintain full engagement in work activation during each performance measurement period. (ii) Reduction in funding If the monthly average number of program-eligible family units that maintain full engagement in a State is not sufficient to fulfill 1 or both of the relevant performance standards in subparagraphs (B) and (C) of paragraph (3) during a performance measurement period (subject to the limitation in paragraph (3)(D)), the Federal supplemental nutrition assistance program funding for the State shall be reduced for the entire penalty period that commences 12 months after the commencement of the relevant performance measurement period. (B) Schedule of funding reductions (i) In general The funding reduction for a State under subparagraph (A) shall be determined by the number of consecutive performance measurement periods during which the State has failed to meet 1 or both of the relevant work activation participation rates under subparagraphs (B) and (C) of paragraph (3) (subject to paragraph (3)(D)). (ii) Failure If any State fails to maintain a monthly average number of program-eligible family units that maintain full engagement in work activation during a performance measurement period that fulfills 1 or both of the relevant performance standards under subparagraphs (B) and (C) of paragraph (3) (subject to paragraph (3)(D))— (I) for a single, nonconsecutive performance measurement period, the Federal supplemental nutrition assistance program funding for the State shall be reduced by 20 percent of the normal funding allotment of the State for the penalty period that commences 12 months after the relevant performance measurement period; (II) for 2 consecutive performance measurement periods, the Federal supplemental nutrition assistance program funding for the State shall be reduced by 30 percent of the normal funding allotment of the State for the penalty period that commences 12 months after the relevant performance measurement period; (III) for 3 consecutive performance measurement periods, the Federal supplemental nutrition assistance program funding for the State shall be reduced by 40 percent of the normal funding allotment of the State for the penalty period that commences 12 months after the relevant performance measurement period; (IV) for 4 consecutive performance measurement periods, the Federal supplemental nutrition assistance program funding for the State shall be reduced by 50 percent of the normal funding allotment of the State for the penalty period that commences 12 months after the relevant performance measurement period; (V) for 5 consecutive performance measurement periods, the Federal supplemental nutrition assistance program funding for the State shall be reduced by 70 percent of the normal funding allotment of the State for the penalty period that commences 12 months after the relevant performance measurement period; and (VI) for 6 or more consecutive performance measurement periods, the Federal supplemental nutrition assistance program funding for the State shall be reduced by 100 percent of the normal funding allotment of the State for the penalty period that commences 12 months after the relevant performance measurement period. (C) Restoration in funding resulting from improved State performance (i) In general Subject to clause (iii), if a State maintains a monthly average number of program-eligible family units that maintain full engagement in work activation that is sufficient to fulfill the relevant performance standards described in subparagraphs (B) and (C) of paragraph (3), subject to the limitation in paragraph (3)(D) for 1 nonconsecutive performance measurement period, the Federal supplemental nutrition assistance funding for the State for the next penalty period shall equal 1/2 (I) the normal funding allotment of the State for the performance measurement period; and (II) the funding allotment of the State for the previous penalty period. (ii) Subsequent periods Subject to clause (iii), if a State maintains a monthly average number of program-eligible family units who maintain full engagement in work activation that is sufficient to fulfill the relevant performance standards described in subparagraphs (B) and (C) of paragraph (3), subject to the limitation in paragraph (3)(D) for 2 consecutive performance measurement periods, the Federal supplemental nutrition assistance funding for the State shall equal 100 percent of the normal funding allotment of the State for the next penalty period. (iii) Limitation Notwithstanding clauses (i) and (ii), no State shall receive more than 100 percent of the normal funding allotment of the State due to the provisions of this paragraph. (6) Rewards to States for reducing government dependence (A) In general If, in any future year, a State reduces the supplemental nutrition assistance caseload of the State below the levels that existed in calendar year 2006, the State shall receive a financial reward for reducing dependence. (B) Amount The reward shall equal 1⁄4 (C) Use of reward A State may use reward funding under this paragraph for any purpose chosen by the State that— (i) provides benefits or services to individuals with incomes below 200 percent of the Federal poverty level; (ii) improves social outcomes in low-income populations; (iii) encourages healthy marriage; or (iv) increases self-sufficiency and reduces dependence. (7) Authorization of funding (A) In general There is authorized to be appropriated to the Secretary to provide funds to State governments for the purpose of carrying out work activation programs in accordance with this section $500,000,000 for fiscal year 2014 and each subsequent fiscal year. (B) Allocation among States The total amount appropriated under subparagraph (A) for a fiscal year shall be allocated among the States in accordance with the proportion of each State’s share of total funding for the supplemental nutrition assistance program under this Act in fiscal year 2007. (C) Additional funding (i) TANF funding (I) In general Notwithstanding any other provision of law, in fiscal year 2014 and each subsequent fiscal year, a State that receives supplemental nutrition assistance funds may spend, in that fiscal year to administer the work activation program of the State under this section, up to— (aa) 30 percent of the Federal funds available to the State through the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act 42 U.S.C. 601 et seq. (bb) 30 percent of funds from State sources allocated to the operation of the program described in item (aa). (II) Effect Any State that uses State funds allocated to the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act 42 U.S.C. 601 et seq. (ii) Workforce Investment Act funding Notwithstanding any other provision of law, in fiscal year 2014 and each subsequent fiscal year, a State that receives Federal funds under the Workforce Investment Act of 1998 ( 29 U.S.C. 2801 et seq. . (j) Conforming amendments (1) Section 5 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2014 (A) in subsection (a), in the second sentence, by striking , 6(d)(2), (B) in subsection (d)(14), by striking section 6(d)(4)(I) section 29 (C) in subsection (e)(3)(B)(ii), by striking subsection (d)(3) section 29 (D) in the first sentence of subsection (g)(3), by striking section 6(d) section 29 (2) Section 7(i)(1) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2016(i)(1) section 6(o)(2) section 6(o) (3) Section 11(e) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2020(e) (A) by striking paragraph (19); and (B) by redesignating paragraphs (20) through (23) as paragraphs (19) through (22), respectively. (4) Section 16 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2025 (A) in subsection (b)(4), by striking section 6(d) section 29 (B) by striking subsection (h). (5) Section 17 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2026 (A) in subsection (b)— (i) in paragraph (1)(B)(iv)(III)— (I) by striking item (bb); and (II) by redesignating items (cc) through (jj) as items (bb) through (ii), respectively; (ii) in paragraph (2), by striking the second sentence; and (iii) in paragraph (3)(B), in the first sentence, by striking section 6(d) section 29, (B) by striking subsection (g). (6) Section 20 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2029 (A) in subsection (b)— (i) by striking paragraph (1); and (ii) by redesignating paragraphs (2) through (6) as paragraphs (1) through (5), respectively; (B) by striking subsection (f); and (C) by redesignating subsection (g) as subsection (f). (7) Section 22(b) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2031(b) (8) Section 26(f)(3)(E) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2036(f)(3)(E) (22), and (23) (21), and (22) (9) Section 501(b)(2)(E) of the Workforce Investment Act of 1998 ( 20 U.S.C. 9271(b)(2)(E) section 6(d) section 29 of the Food and Nutrition Act of 2008. (10) Section 112(b)(8)(A)(iii) of the Workforce Investment Act of 1998 ( 29 U.S.C. 2822(b)(8)(A)(iii) section 6(d)(4) ( 7 U.S.C. 2015(d)(4) section 29 of the Food and Nutrition Act of 2008 (11) Section 121(b)(2)(B)(ii) of the Workforce Investment Act of 1998 ( 29 U.S.C. 2841(b)(2)(B)(ii) section 6(d)(4) section 29 of the Food and Nutrition Act of 2008; 102. Termination of benefit increase Section 101(a)(2) of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 120; 124 Stat. 2394; 124 Stat. 3265) is amended by striking paragraph (2) and inserting the following: (2) Termination The authority provided by this subsection shall terminate on the date of enactment of the Welfare Reform Act of 2014 . II Reporting of means-tested welfare spending in President’s budget submission 201. Additional information in President’s budget submission Section 1105(a) (1) by redesignating the second paragraph designated as paragraph (37), relating to outdated or duplicative plans and reports, as added by section 11 of the GPRA Modernization Act of 2010 ( Public Law 111–352 (2) by adding at the end the following: (40) the total level of means-tested welfare spending (as defined in section 3 of the Congressional Budget Act of 1974 ( 2 U.S.C. 622 . III Aggregate cap for means-tested welfare spending 301. Definition of means-tested welfare spending Section 3 of the Congressional Budget Act of 1974 ( 2 U.S.C. 622 (12) (A) The term means-tested welfare spending (i) means spending for any Federal program that is designed to specifically provide assistance or benefits exclusively to low-income Americans; (ii) does not include such a program if the program— (I) is based on earned eligibility; (II) is not need-based; (III) is a program designed exclusively or primarily for veterans of military service; or (IV) offers universal or near universal eligibility to the working population and their dependents; and (iii) includes community and economic development programs targeted to low-income communities or populations. (B) For purposes of subparagraph (A), the spending on the following Federal programs shall be means-tested welfare spending: (i) Cash and general programs (I) Supplemental Security Income. (II) Earned Income Tax Credit (Refundable Portion). (III) Refundable Child Credit. (IV) Temporary Assistance to Needy Families. (V) Title IV–E Foster Care. (VI) Title IV–E Adoption Assistance. (VII) General Assistance to Indians. (VIII) Assets for Independence. (ii) Medical (I) Medicaid. (II) State Children’s Health Insurance Program. (III) Indian Health Services. (IV) Consolidated Health Centers/Community Health Centers. (V) Maternal and Child Health. (VI) Healthy Start. (VII) Refundable Premiums and Out of Pocket Subsidies under the Patient Protection and Affordable Health Care Act (PPACA). (iii) Food (I) Food Stamps Program. (II) School Lunch Program. (III) Women, Infant and Children (WIC) Food Program. (IV) School Breakfast. (V) Child Care Food Program. (VI) Nutrition Program for the Elderly, Nutrition Service Incentives. (VII) Summer Food Service Program. (VIII) Commodity Supplemental Food Program. (IX) Temporary Emergency Food Program. (X) Needy Families. (XI) Farmer’s Market Nutrition Program. (XII) Special Milk Program. (iv) Housing (I) Section 8 Housing (HUD). (II) Public Housing (HUD). (III) State Housing Expenditures. (IV) Home Investment Partnership Program (HUD). (V) Homeless Assistance Grants (HUD). (VI) Rural Housing Insurance Fund (Agriculture). (VII) Rural Housing Service (Agriculture). (VIII) Housing for the Elderly (HUD). (IX) Native American Housing Block Grants (HUD). (X) Other Assisted Housing Programs (HUD). (XI) Housing for Persons with Disabilities (HUD). (v) Energy and Utilities (I) Low-Income Home Energy Assistance. (II) Universal Service Fund—Subsidized Phone Service for Low-Income Persons. (III) Weatherization. (vi) Education (I) Pell Grants. (II) Title I Grants to Local Education Authorities. (III) Special Programs for Disadvantaged (TRIO). (IV) Supplemental Education Opportunity Grants. (V) Migrant Education. (VI) Gear-Up. (VII) Education for Homeless Children and Youth. (VIII) Leveraging Educational Assistance Partnership (LEAP) Program. (IX) Even Start. (vii) Training (I) Job Corps. (II) Youth Opportunity Grants (under the Workforce Investment Act). (III) Adult Employment and Training (under the Workforce Investment Act). (IV) Senior Community Service Employment. (V) Food Stamp Employment and Training Program. (VI) Migrant Training. (VII) YouthBuild. (VIII) Native American Training. (viii) Services (I) Title XX Social Services Block Grant. (II) Community Service Block Grant. (III) Social Services for Refugees, Asylees, and Humanitarian Cases. (IV) Title III Aging Americans Act. (V) Legal Services Block Grant. (VI) Family Planning. (VII) Emergency Food and Shelter. (VIII) Healthy Marriage and Responsible Fatherhood Grants. (IX) Americorps VISTA. (ix) Child Care and Child Development (I) Headstart. (II) Childcare and Child Development Block Grant. (III) Child Care Block Grant (under Temporary Assistance to Needy Families Program). (x) Community Development (I) Community Development Block Grant. (II) Economic Development Administration. (III) Appalachian Regional Development. (IV) Empowerment Zones, Enterprise Communities, Renewal Communities. (V) Urban Development Block Grant. (C) For purposes of subparagraph (A), spending on the following Federal programs shall not be means-tested welfare spending: (i) The Social Security Disability Insurance program. (ii) Medicare. (iii) Retirement insurance benefits and survivor benefits under the Social Security program. (iv) Any program designed exclusively or primarily for veterans of military service. (v) Unemployment insurance benefits. (vi) Programs designed specifically to provide benefits to workers to compensate for job-related injuries or illnesses. (D) The term means-tested welfare spending (E) (i) (I) For purposes of this paragraph, only the refundable portion of the following tax credits shall be means-tested welfare spending: (aa) The earned income tax credit. (bb) The child tax credit. (cc) The making work pay tax credit. (II) For purposes of this paragraph, only the refundable portion of the premium and out of pocket health care subsidies to be paid under the Patient Protection and Affordable Health Care Act shall be means-tested welfare spending. (III) For purposes of this clause, the term refundable portion (ii) For purposes of this paragraph, only the costs of the free and reduced price segments of the school lunch and school breakfast programs shall be means-tested welfare spending. (F) For purposes of this paragraph expenditures by State and local governments of funds that are— (i) obtained by the State and local government from taxes, fees, or other sources of revenue established by the State or local government; and (ii) are not received as any form of grant from the Federal Government, shall not be Federal means-tested welfare spending, without regard to whether such State and local expenditures take the form of contributions to a Federal program described in subparagraph (A) or listed in subparagraph (B). . 302. Reports to budget committees Section 202(e)(1) of the Congressional Budget Act of 1974 ( 2 U.S.C. 602(e)(1) (1) by inserting (A) (1) (2) by adding at the end the following: (B) (i) The Director shall include in each report submitted to the Committees on the Budget of the House of Representatives and the Senate under subparagraph (A) the information described in clause (ii) beginning on the earlier of— (I) the first fiscal year that begins after the date of enactment of this subparagraph and after any monthly rate of unemployment during the immediately preceding fiscal year is below 6 percent; or (II) fiscal year 2016. (ii) The Director shall include the following information for the fiscal year commencing on October 1 of the year in which the report is submitted and for each of the ensuing 4 fiscal years: (I) The Congressional Budget Office baseline level of means-tested welfare spending. (II) The aggregate level of means-tested welfare spending computed by taking the aggregate level of means-tested welfare spending for fiscal year 2007 and adjusting that for inflation according to the procedures specified in clause (iii). (iii) In preparing the information required to be included under this subparagraph— (I) means-tested welfare spending relating to medical assistance programs shall be adjusted for inflation according to the price index for personal consumption expenditures for health products and services as calculated by the Bureau of Economic Analysis; and (II) all other means-tested welfare spending shall be adjusted for inflation according to the weighted price index for personal consumption expenditures excluding health products and services as calculated by the Bureau of Economic Analysis. . 303. Content of concurrent resolutions on the budget Section 301 of the Congressional Budget Act of 1974 ( 2 U.S.C. 632 (j) Means-Tested welfare spending (1) In general The concurrent resolution on the budget for a fiscal year shall set forth the appropriate level for aggregate means-tested welfare spending for the first fiscal year of that concurrent resolution and for at least each of the 4 ensuing fiscal years beginning on the earlier of— (A) the first fiscal year that begins after the date of enactment of this subsection and after any monthly rate of unemployment during the immediately preceding fiscal year is below 6 percent; or (B) fiscal year 2016. (2) Setting level The level described in paragraph (1) shall not exceed the aggregate level of Federal means-tested welfare spending for fiscal year 2007, adjusted for inflation as follows: (A) In fiscal year 2016, the sum of $825,000,000,000. (B) In fiscal year 2017, the sum of $750,000,000,000. (C) In fiscal year 2018 and in subsequent fiscal years, the aggregate level of Federal means-tested welfare spending for fiscal year 2007, adjusted for inflation as follows: (i) Means-tested welfare spending relating to medical assistance programs shall be adjusted for inflation according to the price index for personal consumption expenditures for health products and services as calculated by the Bureau of Economic Analysis. (ii) All other means-tested welfare spending shall be adjusted for inflation according to the weighted price index for personal consumption expenditures excluding health products and services as calculated by the Bureau of Economic Analysis. . 304. Allocations of means-tested welfare spending (a) In general Section 302 of the Congressional Budget Act of 1974 ( 2 U.S.C. 633 (h) Means-Tested welfare spending limit (1) Further division of amounts For any concurrent resolution on the budget in which levels for aggregate means-tested welfare spending are set forth under section 301(j), in the House of Representatives and the Senate, the amounts allocated under subsection (a) shall be further divided to establish an allocation of— (A) total new budget authority and total outlays for discretionary means-tested welfare spending in appropriation measures for the first fiscal year of that concurrent resolution; and (B) total new budget authority and total outlays for mandatory means-tested welfare spending for the first fiscal year of that concurrent resolution and at least each of the ensuing 4 fiscal years to all other committees of the House of Representatives and the Senate that have jurisdiction over legislation providing mandatory means-tested welfare spending. (2) Point of order (A) In general Except as provided in subparagraph (B), it shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, or amendment between the Houses if— (i) the enactment of such bill or resolution as reported; (ii) the adoption and enactment of such amendment; (iii) the enactment of such bill or resolution in the form recommended in such conference report; or (iv) the enactment of such amendment between the Houses, would cause the applicable allocation of new budget authority or outlays made under subparagraph (A) or (B) of paragraph (1) for a fiscal year to be exceeded. (B) Exception The limits on the allocation of new budget authority or outlays made under subparagraph (A) or (B) of paragraph (1) shall not be in effect for a fiscal year if the average monthly unemployment rate in the preceding fiscal year exceeded 7.5 percent. . (b) Conforming amendment Section 302(b) of the Congressional Budget Act of 1974 is amended by striking under subsection (a) under subsections (a) and (h) 305. Reconciliation Section 310(a) of the Congressional Budget Act of 1974 ( 2 U.S.C. 641(a) (1) in paragraph (3), by striking or (2) by redesignating paragraph (4) as paragraph (5); (3) by inserting after paragraph (3) the following: (4) specify the total amount by which new budget authority for such fiscal year for mandatory means-tested welfare spending contained in laws, bills, and resolutions within the jurisdiction of a committee is to be changed and direct that committee to determine and recommend changes to accomplish a change of such total amount, which amount shall be the amount by which the Congressional Budget Office baseline level of spending for aggregate mandatory means-tested welfare programs exceeds the allocation made pursuant to section 302(h)(1)(B) for such fiscal year; and ; and (4) in paragraph (5), as so redesignated, by striking and (3) (3), and (4) IV Grants to promote self-sufficiency 401. Grants to States (a) Purpose The purpose of this title is to encourage States to develop policies to promote self-sufficiency and prosperity and to reduce poverty and Government dependence. (b) Grants The Social Security Act is amended by adding at the end the following: XXII Grants to States to Promote Self-Sufficiency and Prosperity and to Reduce Dependence 2201. Grants to States (a) In general The Secretary may provide grants to States to reward reductions in poverty and Government dependence and increases in self-sufficiency. (b) Allocation of grants to states For each fiscal year for which funds are made available under subsection (e), the Secretary shall make a grant in an amount equal to $100,000,000 to each of the 3 States with the greatest percentage increases in the self-sufficiency ratio of the State for the preceding fiscal year over the self-sufficiency ratio of the State for fiscal year 2007, as compared with the changes in that ratio for each other State, subject to subsection (c). (c) Limitation on eligibility for grants A State shall not be eligible for a grant under this title for a fiscal year unless the self-sufficiency ratio of the State for the fiscal year is greater than the self-sufficiency ratio of the State for fiscal year 2007. (d) Definitions In this title: (1) The term self-sufficient family (2) The term self-sufficiency ratio (A) the number of self-sufficient families residing in the State during the fiscal year that are headed by able-bodied individuals who have not attained 63 years of age; divided by (B) the total number of families residing in the State during the fiscal year that are headed by able-bodied individuals who have not attained 63 years of age. (3) The term State (e) Limitations on authorization of appropriations For grants under this title, there are authorized to be appropriated to the Secretary $300,000,000 for fiscal year 2016 and each succeeding fiscal year. . V Prohibition on funding of abortion 501. Prohibition on funding for abortions No funds authorized or appropriated by Federal law, and none of the funds in any trust fund to which funds are authorized or appropriated by Federal law, shall be expended for any abortion. 502. Prohibition on funding for health benefits plans that cover abortion None of the funds authorized or appropriated by Federal law, and none of the funds in any trust fund to which funds are authorized or appropriated by Federal law, shall be expended for health benefits coverage that includes coverage of abortion. 503. Prohibition on tax benefits relating to abortion For taxable years beginning after the date of the enactment of this section, no credit shall be allowed under the internal revenue laws with respect to amounts paid or incurred for an abortion or with respect to amounts paid or incurred for a health benefits plan (including premium assistance) that includes coverage of abortion. 504. Construction relating to separate coverage Nothing in this title shall be construed as prohibiting any individual, entity, or State or locality from purchasing separate abortion coverage or health benefits coverage that includes abortion so long as such coverage is paid for entirely using only funds not authorized or appropriated by Federal law and such coverage shall not be purchased using matching funds required for a federally subsidized program, including a State's or locality's contribution of Medicaid matching funds. 505. Construction relating to the use of non-Federal funds for health coverage Nothing in this title shall be construed as restricting the ability of any non-Federal health benefits coverage provider from offering abortion coverage, or the ability of a State or locality to contract separately with such a provider for such coverage, so long as only funds not authorized or appropriated by Federal law are used and such coverage shall not be purchased using matching funds required for a federally subsidized program, including a State's or locality's contribution of Medicaid matching funds. 506. Treatment of abortions related to rape, incest, or preserving the life of the mother The limitations established in this title shall not apply to an abortion— (1) if the pregnancy is the result of an act of rape or incest; or (2) in the case where a woman suffers from a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the woman in danger of death unless an abortion is performed, including a life-endangering physical condition caused by or arising from the pregnancy itself.

Summary: Welfare Reform Act of 2014 - Amends the Food and Nutrition Act of 2008 to declare that it should be the purpose of the supplemental nutrition assistance program (SNAP, formerly the food stamp program) to increase employment, encourage healthy marriage, and promote prosperous self-sufficiency, which means the ability of households to maintain an income above the poverty level without services and benefits from the federal government. Declares that food or a food product shall be considered a food under such Act only if it is a bare essential (as determined by the Secretary of Agriculture [USDA]). Defines "able-bodied, work capable adult" and "physically or mentally incapable of work." Prescribes additional conditions of participation, denying SNAP eligibility, for instance, to any able-bodied, work-capable adult who: (1) refuses to register for employment or without good cause accept an offer of employment at a certain wage, (2) refuses without good cause to give a state agency sufficient information of his or her employment status or job availability, (3) voluntarily quits a job or reduces work effort below 30 hours a week unless another adult in the same family unit increases employment to make up the difference, or (4) is on strike because of a labor dispute other than a lockout. Revises SNAP eligibility requirements for students with dependent children. Denies SNAP eligibility to members of a program-eligible family required by the state agency to participate in work activation unless the relevant one or more adults in such family comply with the work activation standards. Terminates benefits for all family members for failure to participate in work activation during a given month. Prescribes work activation standards for a family unit with adult members required to participate in work activation. Gives states the option to require greater amounts of work activations for work capable family units. Requires each state participating in SNAP to carry out a work activation program whose goals are to: (1) encourage and assist able-bodied, work-capable adult SNAP recipients to obtain paid employment; (2) reduce dependence on government assistance; and (3) ensure that able-bodied, work-capable adult SNAP recipients make a contribution to society and the taxpayers in exchange for assistance received. Sets forth mandatory state work activation participation rates. Prescribes requirements for: (1) funding reductions as a penalty for inadequate state performance, (2) restoration in funding resulting from improved state performance, and (3) rewards to states for reducing government dependence. Amends the American Recovery and Reinvestment Act of 2009 to terminate its temporary increase in SNAP benefits. Requires the President's budget to include the total level of means-tested welfare spending by the federal government as well as the total by all states, local governments, and the federal government for the most recent year for which such data is available, and estimated levels for the fiscal year during which the budget submission is made. Amends the Congressional Budget Act of 1974 to define "means-tested welfare spending" and specifies the federal programs on which welfare spending shall be means-tested, and which federal programs shall not be. Requires reports to congressional budget committees and the concurrent resolution on the budget to include specified information with respect to means-tested welfare spending, and requires a point of order in both chambers of Congress if the means-tested welfare spending limit is to be exceeded. Amends the Social Security Act (SSA) to authorize the Secretary of Health and Human Services (HHS) to make grants to states to reward reductions in poverty and government dependence and increases in self-sufficiency. Restricts funding for health benefits coverage that includes abortion.