(2) 
CONFORMING
AMENDMENT.—Section 
1108(a)(2) (42 U.S.C. 1308(a)(2)) 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 para-
graph (7); and 
(2) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) SUPPLEMENTAL GRANTS.— 
‘‘(A) APPROPRIATION.— 
‘‘(i) IN GENERAL.—For supplemental 
grants under this section, there are appro-
priated— 
‘‘(I) $1,200,000,000 for fiscal 
year 2006; 
‘‘(II) $1,500,000,000 for fiscal 
year 2007; 
‘‘(III) $1,900,000,000 for fiscal 
year 2008; 
‘‘(IV) $2,400,000,000 for fiscal 
year 2009; and 
‘‘(V) $3,000,000,000 for fiscal 
year 2010.
‘‘(ii) AVAILABILITY.—Amounts appro-
priated under clause (i) for a fiscal year 
shall be in addition to amounts appro-
priated under paragraph (3) for such fiscal 
year and shall remain available without fis-
cal year limitation. 
‘‘(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) for the fiscal year and 
subject to paragraph (6), shall pay each State 
an amount which bears the same ratio to the 
amount specified in subparagraph (A)(i) of this 
paragraph for the fiscal year (after the reserva-
tions), as the amount allotted to the State 
under paragraph (2)(B) for fiscal year 2003 
bears to the amount allotted to all States under 
paragraph (2)(B)for fiscal year 2003. 
‘‘(6) REQUIREMENTS.— 
‘‘(A) MAINTENANCE
OF
EFFORT.—The 
Secretary may not pay a supplemental grant to 
a State under paragraph (5) for a fiscal year 
unless the State ensures that the level of State
expenditures for child care for the fiscal year is 
not less than the total amount of State expendi-
tures that were taken into account in deter-
mining the grant (if any) made to the State 
under paragraph (2) for fiscal year 2003. 
‘‘(B) MATCHING REQUIREMENT FOR FIS-
CAL 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 exceeds the amount 
of the grant made to the State under paragraph 
(5) for fiscal year 2008, paragraph (2)(C) shall 
apply to the excess amount in the same manner 
as paragraph (2)(C) applies to grants made 
under paragraph (2)(A) 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) of this paragraph for a fiscal 
year, the supplemental grant determined under 
paragraph (5) for the State for that fiscal year 
shall be redistributed in accordance with para-
graph (2)(D).’’. 
(d) AMENDMENTS TO THE CHILD CARE AND DEVEL-
OPMENT BLOCK GRANT ACT OF 1990.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
Section 658B of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858) is 
amended to read as follows: 
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this subchapter $2,350,000,000 for fiscal year 2006 and 
such sums as may be necessary for fiscal years 2007 
through 2010.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
658E(c)(3)(D) of the Child Care and Development 
Block 
Grant 
Act 
of 
1990 
(42 
U.S.C. 
9858c(c)(3)(D)) is amended by striking ‘‘1997 
through 2002’’ and inserting ‘‘2006 through 2010’’. 
SEC. 202. FAMILY ASSISTANCE GRANTS. 
(a) IN GENERAL.—Section 403(a)(1)(A) (42 U.S.C. 
603(a)(1)(A)) is amended by striking ‘‘1996’’ and all that 
follows through ‘‘2003’’ and inserting ‘‘2005 through 
2010’’. 
(b) INFLATION INCREASE.— 
(1) 
IN
GENERAL.—Section 
403(a)(1) 
(42 
U.S.C. 603(a)(1)) is amended— 
(A) by striking subparagaph (B) and in-
serting the following:
‘‘(B) 
STATE
FAMILY
ASSISTANCE 
GRANT.—The State family assistance grant 
payable to a State for a fiscal year specified in 
subparagraph (A) of this paragraph shall be— 
‘‘(i) the amount that bears the same 
ratio to the amount specified in subpara-
graph (C) of this paragraph as the amount 
required to be paid to the State under this 
paragraph for fiscal year 2002 (determined 
without regard to any reduction pursuant 
to section 409 or 412(a)(1)) bears to the 
total amount required to be paid under 
this paragraph for fiscal year 2002 (as so 
determined); multiplied by 
‘‘(ii) 1.00, plus the inflation percent-
age (as defined in subparagraph (D) of 
this paragraph) in effect for the fiscal year 
so specified.’’; and 
(B) by adding at the end the following: 
‘‘(D) INFLATION PERCENTAGE.—For pur-
poses of subparagraph (B) of this paragraph, 
the inflation percentage applicable to a fiscal 
year is the percentage (if any) by which— 
‘‘(i) the average of the Consumer 
Price Index (as defined in section 1(f)(5)
of the Internal Revenue Code of 1986) for 
the 12-month period ending on September 
30 of the immediately preceding fiscal 
year; exceeds 
‘‘(ii) the average of the Consumer 
Price Index (as so defined) for the 12- 
month period ending on September 30, 
2007.’’. 
(2) EFFECTIVE DATE.—The amendments made by 
paragraph (1) shall take effect on October 1, 2008. 
SEC. 203 SOCIAL SERVICES BLOCK GRANT. 
(a) RESTORATION OF FUNDS.—Section 2003(c)(11) 
(42 U.S.C. 1397b(c)(11)) is amended by inserting ‘‘, ex-
cept that, for fiscal year 2006, the amount shall be 
$1,975,000,000, and for fiscal year 2007, the amount 
shall be $2,800,000,000’’ after ‘‘thereafter’’. 
(b) RESTORATION OF AUTHORITY TO TRANSFER UP 
TO 10 PERCENT OF TANF FUNDS TO THE SOCIAL SERV-
ICES BLOCK GRANT.— 
(1) IN
GENERAL.—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) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to amounts made avail-
able for fiscal year 2006 or for any fiscal year there-
after. 
(c) REQUIREMENT TO SUBMIT ANNUAL REPORT ON 
STATE ACTIVITIES.— 
(1) IN GENERAL.—Section 2006(a) (42 U.S.C. 
1397e(a)) is amended by adding at the end the fol-
lowing: ‘‘The Secretary shall compile the reports 
submitted by the States pursuant to this section and 
submit the compilation to the Congress on an annual 
basis.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to information sub-
mitted by States under section 2006 of the Social 
Security Act (42 U.S.C. 1397e) with respect to fis-
cal year 2006 and each fiscal year thereafter. 
SEC. 204. 5–YEAR EXTENSION AND SIMPLIFICATION OF THE 
TRANSITIONAL MEDICAL ASSISTANCE PRO-
GRAM (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) No-
tices.—’’; 
(C) in paragraph (2)(B), by inserting 
‘‘Subject to subparagraph (C):’’ after ‘‘(B) Re-
porting requirements.—’’; 
(D) by adding at the end the following new 
subparagraph: 
‘‘(C) STATE
OPTION
TO
WAIVE
NOTICE 
AND
REPORTING
REQUIREMENTS.—A State 
may waive some or all of the reporting require-
ments under clauses (i) and (ii) of subpara-
graph (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 ADDI-
TIONAL MONTHS.—Section 1925 (42 U.S.C. 1396r– 
6) is further amended— 
(A) 
by 
redesignating 
subsections 
(c) 
through (f) as subsections (d) through (g), re-
spectively; and 
(B) by inserting after subsection (b) the 
following new subsection: 
‘‘(c) STATE OPTION OF UP TO 12 MONTHS OF ADDI-
TIONAL 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 ex-
ceed 12 months. 
‘‘(2) INCOME RESTRICTION.—The option under 
paragraph (1) shall not be made available to a fam-
ily for a succeeding period unless the State deter-
mines that the family’s average gross monthly earn-
ings (less such costs for such child care as is nec-
essary for the employment of the caretaker relative) 
as of the end of the 6-month period under sub-
section (b) does not exceed 185 percent of the offi-
cial poverty line (as defined by the Office of Man-
agement and Budget, and revised annually in ac-
cordance 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 pro-
vided under this subsection in the same manner as 
they apply to the extension provided under sub-
section (b)(1), except that for purposes of this sub-
section— 
‘‘(A) any reference to a 6-month period 
under subsection (b)(1) is deemed a reference 
to the extension period provided under para-
graph (1) and any deadlines for any notices or 
reporting and the premium payment periods 
shall be modified to correspond to the appro-
priate calendar quarters of coverage provided 
under this subsection; and 
‘‘(B) any reference to a provision of sub-
section (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) 5-YEAR EXTENSION OF SUNSET FOR TMA.— 
(1) IN
GENERAL.—Subsection (g) of section 
1925 (42 U.S.C. 1396r–6), as redesignated under 
subsection (a)(2)(A), is further redesignated as sub-
section (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)) 
is 
amended by striking ‘‘2003’’ and inserting ‘‘2010’’.
(d) CMS REPORT ON ENROLLMENT AND PARTICIPA-
TION RATES UNDER TMA.—Section 1925 (42 U.S.C. 
1396r–6), as amended by subsections (a)(2)(A) and (c), 
is amended by adding at the end the following: 
‘‘(h) ADDITIONAL PROVISIONS.— 
‘‘(1) COLLECTION AND REPORTING OF PARTICI-
PATION INFORMATION.—Each State shall— 
‘‘(A) collect and submit to the Secretary, 
in a format specified by the Secretary, informa-
tion on average monthly enrollment and average 
monthly participation rates for adults and chil-
dren under this section; and 
‘‘(B) make such information publicly avail-
able. 
Such information shall be submitted under subpara-
graph (A) at the same time and frequency in which 
other enrollment information under this title is sub-
mitted to the Secretary. Using such information, the 
Secretary shall submit to Congress annual reports 
concerning such rates.’’. 
(e) COORDINATION OF WORK.—Section 1925(h) (42 
U.S.C. 1396r–6(h)), as added by subsection (d), is amend-
ed by adding at the end the following new paragraph: 
‘‘(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 Assist-
ant 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 assist-
ance 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 further amended by inserting after sub-
section (h), as added by subsection (d), the fol-
lowing: 
‘‘(i) PROVISIONS OPTIONAL FOR STATES THAT EX-
TEND 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 em-
ployment of a caretaker relative) is at or below a level that 
is at least 185 percent of the official poverty line (as de-
fined by the Office of Management and Budget, and re-
vised 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 further amended, in sub-
sections (a)(1) and (b)(1), by inserting ‘‘, but sub-
ject to subsection (i),’’ 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 fol-
lowing 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 assist-
ance. 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 as-
sistance under this title, the notice of such determination 
shall be supplemented by a 1-page notification form de-
scribing the different ways in which individuals and fami-
lies 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 sup-
plemented by information on how to apply for child health 
assistance under the State children’s health insurance pro-
gram under title XXI and how to apply for medical assist-
ance 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 sub-
section (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 med-
ical assistance under title XIX of the Social Security 
Act which the Secretary of Health and Human Serv-
ices determines requires State legislation (other than