124 
(1) SCHEDULE.—The chief executive officer 
shall establish a repayment schedule for each direct 
loan under this Act, based on the projected cash 
flow from infrastructure project revenues and other 
repayment sources. 
(2) COMMENCEMENT.—Scheduled loan repay-
ments of principal or interest on a direct loan under 
this Act shall commence not later than 5 years after 
the date of substantial completion of the infrastruc-
ture project, as determined by the chief executive of-
ficer of AIFA. 
(3) 
DEFERRED
PAYMENTS
OF
DIRECT 
LOANS.— 
(A) AUTHORIZATION.—If, at any time 
after the date of substantial completion of an 
infrastructure project assisted under this Act, 
the infrastructure project is unable to generate 
sufficient revenues to pay the scheduled loan re-
payments of principal and interest on the direct 
loan under this Act, the chief executive officer 
may allow the obligor to add unpaid principal 
and interest to the outstanding balance of the 
direct loan, if the result would benefit the Gov-
ernment. 
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125 
(B) INTEREST.—Any payment deferred 
under subparagraph (A) shall— 
(i) continue to accrue interest, in ac-
cordance with the terms of the obligation, 
until fully repaid; and 
(ii) be scheduled to be amortized over 
the remaining term of the loan. 
(C) CRITERIA.— 
(i) IN GENERAL.—Any payment defer-
ral under subparagraph (A) shall be con-
tingent on the infrastructure project meet-
ing criteria established by the Board of Di-
rectors. 
(ii) REPAYMENT
STANDARDS.—The 
criteria established under clause (i) shall 
include standards for reasonable assurance 
of repayment. 
(4) PREPAYMENT OF DIRECT LOANS.— 
(A) USE OF EXCESS REVENUES.—Any ex-
cess revenues that remain after satisfying 
scheduled debt service requirements on the in-
frastructure project obligations and direct loan 
and all deposit requirements under the terms of 
any trust agreement, bond resolution, or similar 
agreement securing project obligations under 
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126 
this Act may be applied annually to prepay the 
direct loan, without penalty. 
(B) 
USE
OF
PROCEEDS
OF
REFI-
NANCING.—A direct loan under this Act may be 
prepaid at any time, without penalty, from the 
proceeds of refinancing from non-Federal fund-
ing sources. 
(5) SALE OF DIRECT LOANS.— 
(A) IN
GENERAL.—As soon as is prac-
ticable after substantial completion of an infra-
structure project assisted under this Act, and 
after notifying the obligor, the chief executive 
officer may sell to another entity, or reoffer into 
the capital markets, a direct loan for the infra-
structure project, if the chief executive officer 
determines that the sale or reoffering can be 
made on favorable terms for the Government. 
(B) CONSENT OF OBLIGOR.—In making a 
sale or reoffering under subparagraph (A), the 
chief executive officer may not change the origi-
nal terms and conditions of the direct loan, 
without the written consent of the obligor. 
(j) LOAN GUARANTEES.— 
(1) TERMS.—The terms of a loan guaranteed 
by AIFA under this Act shall be consistent with the 
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127 
terms set forth in this section for a direct loan, ex-
cept that the rate on the guaranteed loan and any 
payment, pre-payment, or refinancing features shall 
be negotiated between the obligor and the lender, 
with the consent of the chief executive officer. 
(2) GUARANTEED
LENDER.—A guaranteed 
lender shall be limited to those lenders meeting the 
definition of that term in section 601(a) of title 23, 
United States Code. 
(k) COMPLIANCE WITH FCRA; IN GENERAL.—Di-
rect loans and loan guarantees authorized by this Act shall 
be subject to the provisions of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et seq.). 
SEC. 255. COMPLIANCE AND ENFORCEMENT. 
(a) CREDIT
AGREEMENT.—Notwithstanding any 
other provision of law, each eligible entity that receives 
assistance under this Act from AIFA shall enter into a 
credit agreement that requires such entity to comply with 
all applicable policies and procedures of AIFA, in addition 
to all other provisions of the loan agreement. 
(b) AIFA AUTHORITY ON NONCOMPLIANCE.—In any 
case in which a recipient of assistance under this Act is 
materially out of compliance with the loan agreement, or 
any applicable policy or procedure of AIFA, the Board of 
Directors may take action to cancel unutilized loan 
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128 
amounts, or to accelerate the repayment terms of any out-
standing obligation. 
(c) CONSTRUCTION.—Nothing in this Act is intended 
to affect existing provisions of law applicable to the plan-
ning, development, construction, or operation of projects 
funded under the Act. 
SEC. 256. AUDITS; REPORTS TO THE PRESIDENT AND CON-
GRESS. 
(a) ACCOUNTING.—The books of account of AIFA 
shall be maintained in accordance with generally accepted 
accounting principles, and shall be subject to an annual 
audit by independent public accountants of nationally rec-
ognized standing appointed by the Board of Directors. 
(b) REPORTS.— 
(1) BOARD OF DIRECTORS.—Not later than 90 
days after the last day of each fiscal year, the Board 
of Directors shall submit to the President and Con-
gress a complete and detailed report with respect to 
the preceding fiscal year, setting forth— 
(A) a summary of the operations of AIFA, 
for such fiscal year; 
(B) a schedule of the obligations of AIFA 
and capital securities outstanding at the end of 
such fiscal year, with a statement of the 
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129 
amounts issued and redeemed or paid during 
such fiscal year; 
(C) the status of infrastructure projects re-
ceiving funding or other assistance pursuant to 
this Act during such fiscal year, including all 
nonperforming loans, and including disclosure 
of all entities with a development, ownership, or 
operational interest in such infrastructure 
projects; 
(D) a description of the successes and 
challenges encountered in lending to rural com-
munities, including the role of the Center for 
Excellence and the Office of Rural Assistance 
established under this Act; and 
(E) an assessment of the risks of the port-
folio of AIFA, prepared by an independent 
source. 
(2) GAO.—Not later than 5 years after the 
date of enactment of this Act, the Comptroller Gen-
eral of the United States shall conduct an evaluation 
of, and shall submit to Congress a report on, activi-
ties of AIFA for the fiscal years covered by the re-
port that includes an assessment of the impact and 
benefits of each funded infrastructure project, in-
cluding a review of how effectively each such infra-
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130 
structure project accomplished the goals prioritized 
by the infrastructure project criteria of AIFA. 
(c) BOOKS AND RECORDS.— 
(1) IN GENERAL.—AIFA shall maintain ade-
quate books and records to support the financial 
transactions of AIFA, with a description of financial 
transactions and infrastructure projects receiving 
funding, and the amount of funding for each such 
project maintained on a publically accessible data-
base. 
(2) AUDITS BY THE SECRETARY AND GAO.— 
The books and records of AIFA shall at all times be 
open to inspection by the Secretary of the Treasury, 
the Special Inspector General, and the Comptroller 
General of the United States. 
PART III—FUNDING OF AIFA 
SEC. 257. ADMINISTRATIVE FEES. 
(a) IN GENERAL.—In addition to fees that may be 
collected under section 254(e), the chief executive officer 
shall establish and collect fees from eligible funding recipi-
ents with respect to loans and loan guarantees under this 
Act that— 
(1) are sufficient to cover all or a portion of the 
administrative costs to the Federal Government for 
the operations of AIFA, including the costs of expert 
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131 
firms, including counsel in the field of municipal and 
project finance, and financial advisors to assist with 
underwriting, credit analysis, or other independent 
reviews, as appropriate; 
(2) may be in the form of an application or 
transaction fee, or other form established by the 
chief executive officer; and 
(3) may be based on the risk premium associ-
ated with the loan or loan guarantee, taking into 
consideration— 
(A) the price of United States Treasury 
obligations of a similar maturity; 
(B) prevailing market conditions; 
(C) the ability of the infrastructure project 
to support the loan or loan guarantee; and 
(D) the total amount of the loan or loan 
guarantee. 
(b) AVAILABILITY OF AMOUNTS.—Amounts collected 
under subsections (a)(1), (a)(2), and (a)(3) shall be avail-
able without further action, and the source of fees paid 
under this section shall not be a loan or debt obligation 
guaranteed by the Federal Government. 
SEC. 258. EFFICIENCY OF AIFA. 
The chief executive officer shall, to the extent pos-
sible, take actions consistent with this Act to minimize the 
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132 
risk and cost to the Government of AIFA activities. Fees 
and premiums for loan guarantee or insurance coverage 
will be set at levels that minimize administrative and Fed-
eral credit subsidy costs to the Government, as defined 
in section 502 of the Federal Credit Reform Act of 1990, 
of such coverage, while supporting achievement of the pro-
gram’s objectives, consistent with policies as set forth in 
the business plan. 
SEC. 259. FUNDING. 
(a) IN GENERAL.—There is hereby appropriated to 
AIFA to carry out this Act, for the cost of direct loans 
and loan guarantees subject to the limitations under sec-
tion 253, and for administrative costs, $10,000,000,000, 
to remain available until expended. 
(b) COSTS DEFINED.—Such costs, including the 
costs of modifying such loans, shall be as defined in sec-
tion 502 of the Federal Credit Reform Act of 1990. 
(c) ADMINISTRATIVE COSTS.—Of the amounts appro-
priated under subsection (a), not more than $25,000,000 
for each of fiscal years 2016 through 2017, and not more 
than $50,000,000 for fiscal year 2018 may be used for 
administrative costs of AIFA. 
(d) OFFSETS OF SUBSIDY COSTS.—Not more than 
5 percent of such amount may be used to offset subsidy 
costs associated with rural projects. 
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133 
PART IV—EXTENSION OF EXEMPTION FROM AL-
TERNATIVE MINIMUM TAX TREATMENT FOR 
CERTAIN TAX-EXEMPT BONDS 
SEC. 260. EXTENSION OF EXEMPTION FROM ALTERNATIVE 
MINIMUM TAX TREATMENT FOR CERTAIN 
TAX-EXEMPT BONDS. 
(a) IN GENERAL.—Section 57(a)(5)(C)(vi) of the In-
ternal Revenue Code of 1986 is amended— 
(1) by inserting ‘‘, or after December 31, 2014, 
and before January 1, 2019’’ after ‘‘January 1, 
2011’’ in subclause (I), and 
(2) by striking ‘‘BONDS ISSUED IN 2009 AND 
2010’’ in the heading and inserting ‘‘CERTAIN 
BONDS’’. 
(b) 
ADJUSTED
CURRENT
EARNINGS.—Section 
56(g)(4)(B)(iv) of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘, or after December 31, 2014, 
and before January 1, 2019’’ after ‘‘January 1, 
2011’’ in subclause (I), and 
(2) by striking ‘‘BONDS ISSUED IN 2009 AND 
2010’’ in the heading and inserting ‘‘CERTAIN 
BONDS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2014. 
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134 
Subtitle F—Project Rebuild 
SEC. 261. PROJECT REBUILD. 
(a) DIRECT
APPROPRIATIONS.—There is appro-
priated, out of any money in the Treasury not otherwise 
appropriated, $15,000,000,000, to remain available until 
September 30, 2018, for assistance to eligible entities in-
cluding States and units of general local government (as 
such terms are defined in section 102 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5302)), 
and qualified nonprofit organizations, businesses or con-
sortia of eligible entities for the redevelopment of aban-
doned and foreclosed-upon properties and for the stabiliza-
tion of affected neighborhoods. 
(b) ALLOCATION OF APPROPRIATED AMOUNTS.— 
(1) IN
GENERAL.—Of the amounts appro-
priated, two thirds shall be allocated to States and 
units of general local government based on a funding 
formula established by the Secretary of Housing and 
Urban Development (in this subtitle referred to as 
the ‘‘Secretary’’). Of the amounts appropriated, one 
third shall be distributed competitively to eligible en-
tities. 
(2) FORMULA TO BE DEVISED SWIFTLY.—The 
funding formula required under paragraph (1) shall 
be established and the Secretary shall announce for-
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135 
mula funding allocations, not later than 30 days 
after the date of enactment of this section. 
(3) FORMULA CRITERIA.—The Secretary may 
establish a minimum grant size, and the funding for-
mula required under paragraph (1) shall ensure that 
any amounts appropriated or otherwise made avail-
able under this section are allocated to States and 
units of general local government with the greatest 
need, as such need is determined in the discretion of 
the Secretary based on— 
(A) the number and percentage of home 
foreclosures in each State or unit of general 
local government; 
(B) the number and percentage of homes 
in default or delinquency in each State or unit 
of general local government; and 
(C) other factors such as established pro-
gram designs, grantee capacity and perform-
ance, number and percentage of commercial 
foreclosures, overall economic conditions, and 
other market needs data, as determined by the 
Secretary. 
(4) COMPETITION CRITERIA.— 
(A) For the funds distributed competi-
tively, eligible entities shall be States, units of 
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136 
general local government, nonprofit entities, 
for-profit entities, and consortia of eligible enti-
ties that demonstrate capacity to use funding 
within the period of this program. 
(B) In selecting grantees, the Secretary 
shall ensure that grantees are in areas with the 
greatest number and percentage of residential 
and commercial foreclosures and other market 
needs data, as determined by the Secretary. Ad-
ditional award criteria shall include dem-
onstrated grantee capacity to execute projects 
involving acquisition and rehabilitation or rede-
velopment of foreclosed residential and commer-
cial property and neighborhood stabilization, le-
verage, knowledge of market conditions and of 
effective stabilization activities to address iden-
tified conditions, and any additional factors de-
termined by the Secretary. 
(C) The Secretary may establish a min-
imum grant size. 
(D) The Secretary shall publish competi-
tion criteria for any grants awarded under this 
heading not later than 60 days after appropria-
tion of funds, and applications shall be due to 
the Secretary within 120 days. 
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137 
(c) USE OF FUNDS.— 
(1) OBLIGATION AND EXPENDITURE.—The Sec-
retary shall obligate all funding within 150 days of 
enactment of this Act. Any eligible entity that re-
ceives amounts pursuant to this section shall expend 
all funds allocated to it within three years of the 
date the funds become available to the grantee for 
obligation. Furthermore, the Secretary shall by No-
tice establish intermediate expenditure benchmarks 
at the one and two year dates from the date the 
funds become available to the grantee for obligation. 
(2) PRIORITIES.— 
(A) JOB CREATION.—Each grantee or eli-
gible entity shall describe how its proposed use 
of funds will prioritize job creation, and sec-
ondly, will address goals to stabilize neighbor-
hoods, reverse vacancy, or increase or stabilize 
residential and commercial property values. 
(B) TARGETING.—Any State or unit of 
general local government that receives formula 
amounts pursuant to this section shall, in dis-
tributing and targeting such amounts give pri-
ority emphasis and consideration to those met-
ropolitan areas, metropolitan cities, urban 
areas, rural areas, low- and moderate-income 
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138 
areas, and other areas with the greatest need, 
including those— 
(i) with the greatest percentage of 
home foreclosures; 
(ii) identified as likely to face a sig-
nificant rise in the rate of residential or 
commercial foreclosures; and 
(iii) with higher than national average 
unemployment rate. 
(C) LEVERAGE.—Each grantee or eligible 
entity shall describe how its proposed use of 
funds will leverage private funds. 
(3) ELIGIBLE USES.—Amounts made available 
under this section may be used to— 
(A) establish financing mechanisms for the 
purchase and redevelopment of abandoned and 
foreclosed-upon 
properties, 
including 
such 
mechanisms as soft-seconds, loan loss reserves, 
and shared-equity loans for low- and moderate- 
income homebuyers; 
(B) purchase and rehabilitate properties 
that have been abandoned or foreclosed upon, 
in order to sell, rent, or redevelop such prop-
erties; 
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139 
(C) establish and operate land banks for 
properties that have been abandoned or fore-
closed upon; 
(D) demolish blighted structures; 
(E) redevelop abandoned, foreclosed, de-
molished, or vacant properties; and 
(F) engage in other activities, as deter-
mined by the Secretary through notice, that are 
consistent with the goals of creating jobs, stabi-
lizing neighborhoods, reversing vacancy reduc-
tion, and increasing or stabilizing residential 
and commercial property values. 
(d) LIMITATIONS.— 
(1) ON PURCHASES.—Any purchase of a prop-
erty under this section shall be at a price not to ex-
ceed its current market value, taking into account 
its current condition. 
(2) REHABILITATION.—Any rehabilitation of an 
eligible property under this section shall be to the 
extent necessary to comply with applicable laws, and 
other requirements relating to safety, quality, mar-
ketability, and habitability, in order to sell, rent, or 
redevelop such properties or provide a renewable en-
ergy source or sources for such properties. 
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140 
(3) SALE OF HOMES.—If an abandoned or fore-
closed-upon home is purchased, redeveloped, or oth-
erwise sold to an individual as a primary residence, 
then such sale shall be in an amount equal to or less 
than the cost to acquire and redevelop or rehabilitate 
such home or property up to a decent, safe, market-
able, and habitable condition. 
(4) ON
DEMOLITION
OF
PUBLIC
HOUSING.— 
Public housing, as defined at section 3(b)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a(b)(1)), may not be demolished with funds 
under this section. 
(5) ON
DEMOLITION
ACTIVITIES.—No more 
than 10 percent of any grant made under this sec-
tion may be used for demolition activities unless the 
Secretary determines that such use represents an 
appropriate response to local market conditions. 
(6) ON USE OF FUNDS FOR NON-RESIDENTIAL 
PROPERTY.—No more than 30 percent of any grant 
made under this section may be used for eligible ac-
tivities under subparagraphs (A), (B), and (E) of 
subsection (c)(3) that will not result in residential 
use of the property involved unless the Secretary de-
termines that such use represents an appropriate re-
sponse to local market conditions. 
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141 
(e) RULES OF CONSTRUCTION.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided by this section, amounts appropriated, reve-
nues generated, or amounts otherwise made avail-
able to eligible entities under this section shall be 
treated as though such funds were community devel-
opment block grant funds under title I of the Hous-
ing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.). 
(2) NO MATCH.—No matching funds shall be 
required in order for an eligible entity to receive any 
amounts under this section. 
(3) TENANT PROTECTIONS.—An eligible entity 
receiving a grant under this section shall comply 
with the 14th, 17th, 18th, 19th, 20th, 21st, 22nd, 
and 23rd provisos under the heading ‘‘Department 
of Housing and Urban Development—Community 
Planning and Development—Community Develop-
ment Fund’’ in title XII of division A of the Amer-
ican Recovery and Reinvestment Act of 2009 (Public 
Law 111–5, 123 Stat. 218–19), as amended by sec-
tion 1497(b)(2) of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act (Public Law 
111–203, 124 Stat. 2211). 
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142 
(4) VICINITY HIRING.—An eligible entity receiv-
ing a grant under this section shall comply with sec-
tion 1497(a)(8) of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act (Public Law 
111–203, 129 Stat. 2210). 
(f) AUTHORITY TO SPECIFY ALTERNATIVE RE-
QUIREMENTS.— 
(1) IN
GENERAL.—In administering the pro-
gram under this section, the Secretary may specify 
alternative requirements to any provision under title 
I of the Housing and Community Development Act 
of 1974 or under title I of the Cranston-Gonzalez 
National Affordable Housing Act of 1990 (except for 
those provisions in these laws related to fair hous-
ing, nondiscrimination, labor standards, and the en-
vironment) for the purpose of expediting and facili-
tating the use of funds under this section. 
(2) NOTICE.—The Secretary shall provide writ-
ten notice of intent to the public via Internet to ex-
ercise the authority to specify alternative require-
ments under paragraph. 
(3) LOW
AND
MODERATE
INCOME
REQUIRE-
MENT.— 
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143 
(A) IN
GENERAL.—Notwithstanding the 
authority of the Secretary under paragraph 
(1)— 
(i) all of the formula and competitive 
grantee funds appropriated or otherwise 
made available under this section shall be 
used with respect to individuals and fami-
lies whose income does not exceed 120 per-
cent of area median income; and 
(ii) not less than 25 percent of the 
formula and competitive grantee funds ap-
propriated or otherwise made available 
under this section shall be used for the 
purchase and redevelopment of eligible 
properties that will be used to house indi-
viduals or families whose incomes do not 
exceed 50 percent of area median income. 
(B) 
RECURRENT
REQUIREMENT.—The 
Secretary shall, by rule or order, ensure, to the 
maximum extent practicable and for the longest 
feasible term, that the sale, rental, or redevelop-
ment of abandoned and foreclosed-upon homes 
and residential properties under this section re-
main affordable to individuals or families de-
scribed in subparagraph (A). 
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144 
(g) NATIONWIDE DISTRIBUTION OF RESOURCES.— 
Notwithstanding any other provision of this section or the 
amendments made by this section, each State shall receive 
not less than $20,000,000 of formula funds. 
(h) LIMITATION ON USE OF FUNDS WITH RESPECT 
TO EMINENT DOMAIN.—No State or unit of general local 
government may use any amounts received pursuant to 
this section to fund any project that seeks to use the power 
of eminent domain, unless eminent domain is employed 
only for a public use, which shall not be construed to in-
clude economic development that primarily benefits pri-
vate entities. 
(i) LIMITATION ON DISTRIBUTION OF FUNDS.— 
(1) IN
GENERAL.—None of the funds made 
available under this section shall be distributed to— 
(A) an organization which has been in-
dicted for a violation under Federal law relating 
to an election for Federal office; or 
(B) an organization which employs applica-
ble individuals. 
(2) APPLICABLE
INDIVIDUALS
DEFINED.—In 
this section, the term ‘‘applicable individual’’ means 
an individual who— 
(A) is— 
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145 
(i) employed by the organization in a 
permanent or temporary capacity; 
(ii) contracted or retained by the or-
ganization; or 
(iii) acting on behalf of, or with the 
express or apparent authority of, the orga-
nization; and 
(B) has been indicted for a violation under 
Federal law relating to an election for Federal 
office. 
(j) RENTAL HOUSING PREFERENCES.—Each State 
and local government receiving formula amounts shall es-
tablish procedures to create preferences for the develop-
ment of affordable rental housing. 
(k) JOB CREATION.—If a grantee chooses to use 
funds to create jobs by establishing and operating a pro-
gram to maintain eligible neighborhood properties, not 
more than 10 percent of any grant may be used for that 
purpose. 
(l) PROGRAM SUPPORT AND CAPACITY BUILDING.— 
The Secretary may use up to 0.75 percent of the funds 
appropriated for capacity building of and support for eligi-
ble entities and grantees undertaking neighborhood sta-
bilization programs, staffing, training, technical assist-
ance, technology, monitoring, travel, enforcement, re-
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146 
search, and evaluation activities, subject to the following 
requirements: 
(1) Funds set aside for the purposes of this 
subparagraph shall remain available until September 
30, 2018. 
(2) Any funds made available under this sub-
paragraph and used by the Secretary for personnel 
expenses related to administering funding under this 
subparagraph shall be transferred to ‘‘Personnel 
Compensation and Benefits, Community Planning 
and Development’’. 
(3) Any funds made available under this sub-
paragraph and used by the Secretary for training or 
other administrative expenses shall be transferred to 
‘‘Administration, 
Operations, 
and 
Management, 
Community Planning and Development’’ for non- 
personnel expenses. 
(4) Any funds made available under this sub-
paragraph and used by the Secretary for technology 
shall be transferred to ‘‘Working Capital Fund’’. 
(m) ENFORCEMENT AND PREVENTION OF FRAUD 
AND ABUSE.—The Secretary shall establish and imple-
ment procedures to prevent fraud and abuse of funds 
under this section, and shall impose a requirement that 
grantees have an internal auditor to continuously monitor 
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147 
grantee performance to prevent fraud, waste, and abuse. 
Grantees shall provide the Secretary and citizens with 
quarterly progress reports. The Secretary shall recapture 
funds from formula and competitive grantees that do not 
expend 100 percent of allocated funds within 3 years of 
the date that funds become available, and from underper-
forming or mismanaged grantees, and shall re-allocate 
those funds by formula to target areas with the greatest 
need, as determined by the Secretary through notice. The 
Secretary may take an alternative sanctions action only 
upon determining that such action is necessary to achieve 
program goals in a timely manner. 
(n) CONFORMANCE
OF
POLICIES
AND
PROCE-
DURES.—The Secretary of Housing and Urban Develop-
ment shall to the extent feasible conform policies and pro-
cedures for grants made under this section to the policies 
and practices already in place for the grants made under 
section 2301 of the Housing and Economic Recovery Act 
of 2008 (42 U.S.C. 5301 note); title XII of division A 
of the American Recovery and Reinvestment Act of 2009 
(Public Law 111–5; 123 Stat. 203); or section 1497 of 
the Dodd-Frank Wall Street Reform and Consumer Pro-
tection Act (42 U.S.C. 5301 note). 
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148 
TITLE III—ASSISTANCE FOR THE 
UNEMPLOYED 
AND 
PATH-
WAYS BACK TO WORK 
Subtitle A—Supporting 
Unemployed Workers 
SEC. 301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Supporting Unem-
ployed Workers Act of 2015’’. 
PART I—EXTENSION OF EMERGENCY UNEMPLOY-
MENT COMPENSATION AND CERTAIN EX-
TENDED BENEFITS PROVISIONS, AND ESTAB-
LISHMENT OF SELF-EMPLOYMENT ASSIST-
ANCE PROGRAM 
SEC. 311. EXTENSION OF EMERGENCY UNEMPLOYMENT 
COMPENSATION PROGRAM. 
(a) IN GENERAL.—Section 4007 of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 
U.S.C. 3304 note) is amended by striking ‘‘January 1, 
2014’’ and inserting ‘‘January 1, 2016’’. 
(b) FUNDING.—Section 4004(e)(1) of the Supple-
mental Appropriations Act, 2008 (Public Law 110–252; 
26 U.S.C. 3304 note) is amended— 
(1) in subparagraph (I), by striking ‘‘and’’ at 
the end; 
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149 
(2) in subparagraph (J), by inserting ‘‘and’’ at 
the end; and 
(3) by inserting after subparagraph (J) the fol-
lowing: 
‘‘(K) the amendments made by section 
311(a) of the Supporting Unemployed Workers 
Act of 2015; and’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of the American Taxpayer Relief Act of 2012 (Public 
Law 112–240; 26 U.S.C. 3304 note). 
SEC. 312. TEMPORARY EXTENSION OF EXTENDED BENEFIT 
PROVISIONS. 
(a) IN GENERAL.—Section 2005 of the Assistance for 
Unemployed Workers and Struggling Families Act, as 
contained in Public Law 111–5 (26 U.S.C. 3304 note), 
is amended— 
(1) by striking ‘‘December 31, 2013’’ each 
place it appears and inserting ‘‘December 31, 
2015’’; and 
(2) in subsection (c), by striking ‘‘June 30, 
2014’’ and inserting ‘‘June 30, 2016’’. 
(b) EXTENSION OF MATCHING FOR STATES WITH 
NO WAITING WEEK.—Section 5 of the Unemployment 
Compensation Extension Act of 2008 (Public Law 110– 
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449; 26 U.S.C. 3304 note) is amended by striking ‘‘June 
30, 2014’’ and inserting ‘‘June 30, 2016’’. 
(c) EXTENSION OF MODIFICATION OF INDICATORS 
UNDER THE EXTENDED BENEFIT PROGRAM.—Section 
203 of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note) is amend-
ed— 
(1) in subsection (d), by striking ‘‘December 
31, 2013’’ and inserting ‘‘December 31, 2015’’; and 
(2) in subsection (f)(2), by striking ‘‘December 
31, 2013’’ and inserting ‘‘December 31, 2015’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of the American Taxpayer Relief Act of 2012 (Public 
Law 112–240; 26 U.S.C. 3304 note). 
SEC. 313. ADDITIONAL EXTENDED UNEMPLOYMENT BENE-
FITS UNDER THE RAILROAD UNEMPLOY-
MENT INSURANCE ACT. 
(a) EXTENSION.—Section 2(c)(2)(D)(iii) of the Rail-
road 
Unemployment 
Insurance 
Act 
(45 
U.S.C. 
352(c)(2)(D)(iii)) is amended— 
(1) by striking ‘‘June 30, 2013’’ and inserting 
‘‘June 30, 2015’’; and 
(2) by striking ‘‘December 31, 2013’’ and in-
serting ‘‘December 31, 2015’’. 
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151 
(b) 
CLARIFICATION
ON
AUTHORITY
TO
USE 
FUNDS.—Funds appropriated under either the first or 
second sentence of clause (iv) of section 2(c)(2)(D) of the 
Railroad Unemployment Insurance Act (45 U.S.C. 
352(c)(2)(D)) shall be available to cover the cost of addi-
tional extended unemployment benefits provided under 
such section 2(c)(2)(D) by reason of the amendments 
made by subsection (a) as well as to cover the cost of such 
benefits provided under such section 2(c)(2)(D), as in ef-
fect on the day before the date of the enactment of this 
Act. 
PART II—REEMPLOYMENT NOW PROGRAM 
SEC. 321. ESTABLISHMENT OF REEMPLOYMENT NOW PRO-
GRAM. 
(a) IN GENERAL.—There is established the Reem-
ployment NOW program to be carried out by the Sec-
retary of Labor in accordance with this part in order to 
facilitate the reemployment of individuals who are receiv-
ing emergency unemployment compensation under title IV 
of the Supplemental Appropriations Act, 2008 (Public 
Law 110–252; 26 U.S.C. 3304 note) (hereafter in this 
part referred to as ‘‘EUC claimants’’). 
(b) AUTHORIZATION
AND APPROPRIATION.—There 
are authorized to be appropriated $4,000,000,000 for fis-
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152 
cal year 2016 to carry out the Reemployment NOW pro-
gram under this part. 
SEC. 322. DISTRIBUTION OF FUNDS. 
(a) IN GENERAL.—Of the amount made available 
under section 321(b) to carry out this part, the Secretary 
of Labor shall— 
(1) reserve up to 1 percent for the costs of Fed-
eral administration and for carrying out rigorous 
evaluations of the activities conducted under this 
part; and 
(2) allot the remainder of the funds not re-
served under paragraph (1) in accordance with the 
requirements of subsections (b) and (c) to States 
that have approved plans under section 323. 
(b) ALLOTMENT FORMULA.— 
(1) FORMULA
FACTORS.—The Secretary of 
Labor shall allot the funds available under sub-
section (a)(2) as follows— 
(A) two-thirds of such funds shall be allot-
ted on the basis of the relative number of un-
employed individuals in each State, compared to 
the total number of unemployed individuals in 
all States; and 
(B) one-third of such funds shall be allot-
ted on the basis of the relative number of indi-
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153 
viduals in each State who have been unem-
ployed for 27 weeks or more, compared to the 
total number of individuals in all States who 
have been unemployed for 27 weeks or more. 
(2) CALCULATION.—For purposes of paragraph 
(1), the number of unemployed individuals and the 
number of individuals unemployed for 27 weeks or 
more shall be based on the data for the most recent 
12-month period, as determined by the Secretary. 
(c) REALLOTMENT.— 
(1) FAILURE TO SUBMIT STATE PLAN.—If a 
State does not submit a State plan by the time spec-
ified in section 323(b), or a State does not receive 
approval of a State plan, the amount the State 
would have been eligible to receive pursuant to the 
formula under subsection (b) shall be allotted to 
States that receive approval of the State plan under 
section 323 in accordance with the relative allot-
ments of such States as determined by the Secretary 
under subsection (b). 
(2) FAILURE TO IMPLEMENT ACTIVITIES ON A 
TIMELY BASIS.—The Secretary of Labor may, in ac-
cordance with procedures and criteria established by 
the Secretary, recapture the portion of the State al-
lotment under this part that remains unobligated if 
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154 
the Secretary determines such funds are not being 
obligated at a rate sufficient to meet the purposes 
of this part. The Secretary shall reallot such recap-
tured funds to other States that are not subject to 
recapture in accordance with the relative share of 
the allotments of such States as determined by the 
Secretary under subsection (b). 
(3) RECAPTURE OF FUNDS.—Funds recaptured 
under paragraph (2) shall be available for reobliga-
tion not later than December 31, 2015. 
SEC. 323. STATE PLAN. 
(a) IN GENERAL.—For a State to be eligible to re-
ceive an allotment under section 322, a State shall submit 
to the Secretary of Labor a State plan in such form and 
containing such information as the Secretary may require, 
which at a minimum shall include— 
(1) a description of the activities to be carried 
out by the State to assist in the reemployment of eli-
gible individuals to be served in accordance with this 
part, including which of the activities authorized in 
sections 324 through 328 the State intends to carry 
out and an estimate of the amounts the State in-
tends to allocate to the activities, respectively; 
(2) a description of the performance outcomes 
to be achieved by the State through the activities 
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155 
carried out under this part, including the employ-
ment outcomes to be achieved by participants and 
the processes the State will use to track perform-
ance, consistent with guidance provided by the Sec-
retary of Labor regarding such outcomes and proc-
esses; 
(3) a description of coordination of activities to 
be carried out under this part with activities under 
title I of the Workforce Innovation and Opportunity 
Act, the Wagner-Peyser Act, and other appropriate 
Federal programs; 
(4) the timelines for implementation of the ac-
tivities described in the plan and the number of 
EUC claimants expected to be enrolled in such ac-
tivities by quarter; 
(5) assurances that the State will participate in 
the evaluation activities carried out by the Secretary 
of Labor under this section; 
(6) assurances that the State will provide ap-
propriate reemployment services, including coun-
seling, to any EUC claimant who participates in any 
of the programs authorized under this part; and 
(7) assurances that the State will report such 
information as the Secretary may require relating to 
fiscal, performance and other matters, including em-
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156 
ployment outcomes and effects, which the Secretary 
determines are necessary to effectively monitor the 
activities carried out under this part. 
(b) PLAN SUBMISSION
AND APPROVAL.—A State 
plan under this section shall be submitted to the Secretary 
of Labor for approval not later than 30 days after the 
Secretary issues guidance relating to submission of such 
plan. The Secretary shall approve such plans if the Sec-
retary determines that the plans meet the requirements 
of this part and are appropriate and adequate to carry 
out the purposes of this part. 
(c) PLAN MODIFICATIONS.—A State may submit 
modifications to a State plan that has been approved 
under this part, and the Secretary of Labor may approve 
such modifications, if the plan as modified would meet the 
requirements of this part and are appropriate and ade-
quate to carry out the purposes of this part. 
SEC. 324. BRIDGE TO WORK PROGRAM. 
(a) IN GENERAL.—A State may use funds allotted 
to the State under this part to establish and administer 
a Bridge to Work program described in this section. 
(b) DESCRIPTION
OF PROGRAM.—In order to in-
crease individuals’ opportunities to move to permanent 
employment, a State may establish a Bridge to Work pro-
gram to provide an EUC claimant with short-term work 
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157 
experience placements with an eligible employer, during 
which time such individual— 
(1) shall be paid emergency unemployment 
compensation payable under title IV of the Supple-
mental Appropriations Act, 2008 (Public Law 110– 
252; 26 U.S.C. 3304 note), as wages for work per-
formed, and as specified in subsection (c); 
(2) shall be paid the additional amount de-
scribed in subsection (e) as augmented wages for 
work performed; and 
(3) may be paid compensation in addition to 
the amounts described in paragraphs (1) and (2) by 
a State or by a participating employer as wages for 
work performed. 
(c) PROGRAM ELIGIBILITY AND OTHER REQUIRE-
MENTS.—For purposes of this program— 
(1) individuals who, except for the requirements 
described in paragraph (3), are eligible to receive 
emergency unemployment compensation payments 
under title IV of the Supplemental Appropriations 
Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 
note), and who choose to participate in the program 
described in subsection (b), shall receive such pay-
ments as wages for work performed during their vol-
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158 
untary participation in the program described under 
subsection (b); 
(2) the wages payable to individuals described 
in paragraph (1) shall be paid from the emergency 
unemployment compensation account for such indi-
vidual as described in section 4002 of the Supple-
mental Appropriations Act, 2008 (Public Law 110– 
252; 26 U.S.C. 3304 note), and the amount in such 
individual’s account shall be reduced accordingly; 
(3) the wages payable to an individual described 
in paragraph (1) shall be payable in the same 
amount, at the same interval, on the same terms, 
and subject to the same conditions under title IV of 
the Supplemental Appropriations Act, 2008 (Public 
Law 110–252; 26 U.S.C. 3304 note), except that— 
(A) State requirements applied under such 
Act relating to availability for work and active 
search for work are not applicable to such indi-
viduals who participate for at least 25 hours 
per week in the program described in subsection 
(b) for the duration of such individual’s partici-
pation in the program; 
(B) State requirements applied under such 
Act relating to disqualifying income regarding 
wages earned shall not apply to such individuals 
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159 
who participate for at least 25 hours per week 
in the program described in subsection (b), and 
shall not apply with respect to— 
(i) the wages described under sub-
section (b); and 
(ii) any wages, in addition to those de-
scribed under subsection (b), whether paid 
by a State or a participating employer for 
the same work activities; 
(C) State prohibitions or limitations ap-
plied under such Act relating to employment 
status shall not apply to such individuals who 
participate in the program described in sub-
section (b); and 
(D) State requirements applied under such 
Act relating to an individual’s acceptance of an 
offer of employment shall not apply with regard 
to an offer of long-term employment from a 
participating employer made to such individual 
who is participating in the program described in 
subsection (b) in a work experience provided by 
such employer, where such long-term employ-
ment is expected to commence or commences at 
the conclusion of the duration specified in para-
graph (4)(A); 
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160 
(4) the program shall be structured so that in-
dividuals described in paragraph (1) may participate 
in the program for up to— 
(A) 8 weeks, and 
(B) 38 hours for each such week; 
(5) a State shall ensure that all individuals par-
ticipating in the program are covered by a workers’ 
compensation insurance program; and 
(6) the program meets such other requirements 
as the Secretary of Labor determines to be appro-
priate in guidance issued by the Secretary. 
(d) STATE REQUIREMENTS.— 
(1) CERTIFICATION OF ELIGIBLE EMPLOYER.— 
A State may certify as eligible for participation in 
the program under this section any employer that 
meets the eligibility criteria as established in guid-
ance by the Secretary of Labor, except that an em-
ployer shall not be certified as eligible for participa-
tion in the program described under subsection 
(b)— 
(A) if such employer— 
(i) is a Federal, State, or local govern-
ment entity; 
(ii) would engage an eligible individual 
in work activities under any employer’s 
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161 
grant, contract, or subcontract with a Fed-
eral, State, or local government entity, ex-
cept with regard to work activities under 
any employer’s supply contract or sub-
contract; 
(iii) is delinquent with respect to any 
taxes or employer contributions described 
under sections 3301 and 3302(a)(1) of the 
Internal Revenue Code of 1986 or with re-
spect to any related reporting require-
ments; 
(iv) is engaged in the business of sup-
plying workers to other employers and 
would participate in the program for the 
purpose of supplying individuals partici-
pating in the program to other employers; 
or 
(v) has previously participated in the 
program and the State has determined 
that such employer has failed to abide by 
any of the requirements specified in sub-
section (h), (i), or (j), or by any other re-
quirements that the Secretary may estab-
lish for employers under subsection (c)(6); 
and 
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162 
(B) unless such employer provides assur-
ances that it has not displaced existing workers 
pursuant to the requirements of subsection (h). 
(2) AUTHORIZED ACTIVITIES.—Funds allotted 
to a State under this part for the program— 
(A) shall be used to— 
(i) recruit employers for participation 
in the program; 
(ii) review and certify employers iden-
tified by eligible individuals seeking to par-
ticipate in the program; 
(iii) ensure that reemployment and 
counseling services are available for pro-
gram participants, including services de-
scribing the program under subsection (b), 
prior to an individual’s participation in 
such program; 
(iv) establish and implement processes 
to monitor the progress and performance 
of individual participants for the duration 
of the program; 
(v) prevent misuse of the program; 
and 
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163 
(vi) pay augmented wages to eligible 
individuals, if necessary, as described in 
subsection (e); and 
(B) may be used— 
(i) to pay workers’ compensation in-
surance premiums to cover all individuals 
participating in the program, except that, 
if a State opts not to make such payments 
directly to a State administered workers’ 
compensation program, the State involved 
shall describe in the approved State plan 
the means by which such State shall en-
sure workers’ compensation or equivalent 
coverage for all individuals who participate 
in the program; 
(ii) to pay compensation to a partici-
pating individual that is in addition to the 
amounts described in subsections (c)(1) 
and (e) as wages for work performed; 
(iii) to provide supportive services, 
such as transportation, child care, and de-
pendent care, that would enable individuals 
to participate in the program; 
(iv) for the administration and over-
sight of the program; and 
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164 
(v) to fulfill additional program re-
quirements included in the approved State 
plan. 
(e) PAYMENT
OF AUGMENTED WAGES
IF NEC-
ESSARY.—In the event that the wages described in sub-
section (c)(1) are not sufficient to equal or exceed the min-
imum wages that are required to be paid by an employer 
under section 6(a)(1) of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 206(a)(1)) or the applicable State or 
local minimum wage law, whichever is higher, a State shall 
pay augmented wages to a program participant in any 
amount necessary to cover the difference between— 
(1) such minimum wages amount; and 
(2) the wages payable under subsection (c)(1). 
(f) EFFECT OF WAGES ON ELIGIBILITY FOR OTHER 
PROGRAMS.—None of the wages paid under this section 
shall be considered as income for the purposes of deter-
mining eligibility for and the amount of income transfer 
and in-kind aid furnished under any Federal or federally 
assisted program based on need. 
(g) EFFECT
OF WAGES, WORK ACTIVITIES, AND 
PROGRAM PARTICIPATION ON CONTINUING ELIGIBILITY 
FOR EMERGENCY UNEMPLOYMENT COMPENSATION.— 
Any wages paid under this section and any additional 
wages paid by an employer to an individual described in 
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165 
subsection (c)(1), and any work activities performed by 
such individual as a participant in the program, shall not 
be construed so as to render such individual ineligible to 
receive emergency unemployment compensation under title 
IV of the Supplemental Appropriations Act, 2008 (Public 
Law 110–252; 26 U.S.C. 3304 note). 
(h) NONDISPLACEMENT OF EMPLOYEES.— 
(1) PROHIBITION.—An employer shall not use a 
program participant to displace (including a partial 
displacement, such as a reduction in the hours of 
non-overtime work, wages, or employment benefits) 
any current employee (as of the date of the partici-
pation). 
(2) OTHER PROHIBITIONS.—An employer shall 
not permit a program participant to perform work 
activities related to any job for which— 
(A) any other individual is on layoff from 
the same or any substantially equivalent posi-
tion; 
(B) the employer has terminated the em-
ployment of any employee or otherwise reduced 
the workforce of the employer with the inten-
tion of filling or partially filling the vacancy so 
created with the work activities to be performed 
by a program participant; 
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166 
(C) there is a strike or lock out at the 
worksite that is the participant’s place of em-
ployment; or 
(D) the job is created in a manner that 
will infringe in any way upon the promotional 
opportunities of currently employed individuals 
(as of the date of the participation). 
(i) PROHIBITION ON IMPAIRMENT OF CONTRACTS.— 
An employer shall not, by means of assigning work activi-
ties under this section, impair an existing contract for 
services or a collective bargaining agreement, and no such 
activity that would be inconsistent with the terms of a col-
lective bargaining agreement shall be undertaken without 
the written concurrence of the labor organization that is 
signatory to the collective bargaining agreement. 
(j) LIMITATION ON EMPLOYER PARTICIPATION.—If, 
after 24 weeks of participation in the program, an em-
ployer has not made an offer of suitable long-term employ-
ment to any individual described under subsection (c)(1) 
who was placed with such employer and has completed the 
program, a State shall bar such employer from further 
participation in the program. States may impose addi-
tional conditions on participating employers to ensure that 
an appropriate number of participants receive offers of 
suitable long-term employment. 
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(k) FAILURE TO MEET PROGRAM REQUIREMENTS.— 
If a State makes a determination based on information 
provided to the State, or acquired by the State by means 
of its administration and oversight functions, that a par-
ticipating employer under this section has violated a re-
quirement of this section, the State shall bar such em-
ployer from further participation in the program. The 
State shall establish a process whereby an individual de-
scribed in subsection (c)(1), or any other affected indi-
vidual or entity, may file a complaint with the State relat-
ing to a violation of any requirement or prohibition under 
this section. 
(l) PARTICIPANT OPTION TO TERMINATE PARTICIPA-
TION IN BRIDGE TO WORK PROGRAM.— 
(1) TERMINATION.—An individual who is par-
ticipating in a program described in subsection (b) 
may opt to discontinue participation in such pro-
gram. 
(2) CONTINUED ELIGIBILITY FOR EMERGENCY 
UNEMPLOYMENT
COMPENSATION.—An 
individual 
who opts to discontinue participation in such pro-
gram, is terminated from such program by a partici-
pating employer, or who has completed participation 
in such program, and who continues to meet the eli-
gibility requirements for emergency unemployment 
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168 
compensation under title IV of the Supplemental 
Appropriations Act, 2008 (Public Law 110–252; 26 
U.S.C. 3304 note), shall receive emergency unem-
ployment compensation payments with respect to 
subsequent weeks of unemployment, to the extent 
that amounts remain in the account established for 
such individual under section 4002(b) of such Act or 
to the extent that such individual commences receiv-
ing the amounts described in subsection (c), (d), or 
(e) of such section, respectively. 
(m) EFFECT OF OTHER LAWS.—Unless otherwise 
provided in this section, nothing in this section shall be 
construed to alter or affect the rights or obligations under 
any Federal, State, or local laws with respect to any indi-
vidual described in subsection (c)(1) and with respect to 
any participating employer under this section. 
(n) TREATMENT OF PAYMENTS.—All wages or other 
payments to an individual under this section shall be treat-
ed as payments of unemployment compensation for pur-
poses of section 209 of the Social Security Act (42 U.S.C. 
409) and for purposes of subtitle A and sections 3101, 
3111, and 3301 of the Internal Revenue Code of 1986. 
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169 
SEC. 325. WAGE INSURANCE. 
(a) IN GENERAL.—A State may use the funds allot-
ted to the State under this part to provide a wage insur-
ance program for EUC claimants. 
(b) BENEFITS.—The wage insurance program pro-
vided under this section may use funds allotted to the 
State under this part to pay, for a period not to exceed 
2 years, to a worker described in subsection (c), up to 50 
percent of the difference between— 
(1) the wages received by the worker at the 
time of separation; and 
(2) the wages received by the worker for reem-
ployment. 
(c) INDIVIDUAL
ELIGIBILITY.—The benefits de-
scribed in subsection (b) may be paid to an individual who 
is an EUC claimant at the time such individual obtains 
reemployment and who— 
(1) is at least 50 years of age; 
(2) earns not more than $50,000 per year in 
wages from reemployment; 
(3) is employed on a full-time basis as defined 
by the law of the State; and 
(4) is not employed by the employer from which 
the individual was last separated. 
(d) TOTAL AMOUNT OF PAYMENTS.—A State shall 
establish a maximum amount of payments per individual 
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for purposes of payments described in subsection (b) dur-
ing the eligibility period described in such subsection. 
(e) NON-DISCRIMINATION REGARDING WAGES.—An 
employer shall not pay a worker described in subsection 
(c) less than such employer pays to a regular worker in 
the same or substantially equivalent position. 
SEC. 326. ENHANCED REEMPLOYMENT STRATEGIES. 
(a) IN GENERAL.—A State may use funds allotted 
under this part to provide a program of enhanced reem-
ployment services to EUC claimants. In addition to the 
provision of services to such claimants, the program may 
include the provision of reemployment services to individ-
uals who are unemployed and have exhausted their rights 
to emergency unemployment compensation under title IV 
of the Supplemental Appropriations Act, 2008 (Public 
Law 110–252; 26 U.S.C. 3304 note). The program shall 
provide reemployment services that are more intensive 
than the reemployment services provided by the State 
prior to the receipt of the allotment under this part. 
(b) TYPES OF SERVICES.—The enhanced reemploy-
ment services described in subsection (a) may include serv-
ices such as— 
(1) assessments, counseling, and other intensive 
services that are provided by staff on a one-to-one 
basis and may be customized to meet the reemploy-
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171 
ment needs of EUC claimants and individuals de-
scribed in subsection (a); 
(2) comprehensive assessments designed to 
identify alternative career paths; 
(3) case management; 
(4) reemployment services that are provided 
more frequently and more intensively than such re-
employment services have previously been provided 
by the State; and 
(5) services that are designed to enhance com-
munication skills, interviewing skills, and other skills 
that would assist in obtaining reemployment. 
SEC. 327. SELF-EMPLOYMENT PROGRAMS. 
A State may use funds allotted to the State under 
this part, in an amount specified under an approved State 
plan, for the administrative costs associated with starting 
up the self-employment assistance program described in 
section 4001(i) of the Supplemental Appropriations Act, 
2008 (Public Law 110–252; 26 U.S.C. 3304 note). 
SEC. 328. ADDITIONAL INNOVATIVE PROGRAMS. 
(a) IN GENERAL.—A State may use funds allotted 
under this part to provide a program for innovative activi-
ties, which use a strategy that is different from the reem-
ployment strategies described in sections 324–327 and 
which are designed to facilitate the reemployment of EUC 
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172 
claimants. In addition to the provision of activities to such 
claimants, the program may include the provision of activi-
ties to individuals who are unemployed and have exhausted 
their rights to emergency unemployment compensation 
under title IV of the Supplemental Appropriations Act, 
2008 (Public Law 110–252; 26 U.S.C. 3304 note). 
(b) CONDITIONS.—The innovative activities approved 
in accordance with subsection (a)— 
(1) shall directly benefit EUC claimants and, if 
applicable, individuals described in subsection (a), ei-
ther as a benefit paid to such claimant or individual 
or as a service provided to such claimant or indi-
vidual; 
(2) shall not result in a reduction in the dura-
tion or amount of, emergency unemployment com-
pensation for which EUC claimants would otherwise 
be eligible; 
(3) shall not include a reduction in the dura-
tion, amount of or eligibility for regular compensa-
tion or extended benefits; 
(4) shall not be used to displace (including a 
partial displacement, such as a reduction in the 
hours of non-overtime work, wages, or employment 
benefits) any currently employed employee (as of the 
date of the participation) or allow a program partici-
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173 
pant to perform work activities related to any job for 
which— 
(A) any other individual is on layoff from 
the same or any substantially equivalent job; 
(B) the employer has terminated the em-
ployment of any regular employee or otherwise 
reduced the workforce of the employer with the 
intention of filling or partially filling the va-
cancy so created with the work activities to be 
performed by a program participant; 
(C) there is a strike or lock out at the 
worksite that is the participant’s place of em-
ployment; or 
(D) the job is created in a manner that 
will infringe in any way upon the promotional 
opportunities of currently employed individuals 
(as of the date of the participation); and 
(5) shall not be in violation of any Federal, 
State, or local law. 
SEC. 329. GUIDANCE AND ADDITIONAL REQUIREMENTS. 
The Secretary of Labor may establish through guid-
ance, without regard to the requirements of section 553 
of title 5, United States Code, such additional require-
ments, including requirements regarding the allotment, re-
capture, and reallotment of funds, and reporting require-
VerDate Sep 11 2014 
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174 
ments, as the Secretary determines to be necessary to en-
sure fiscal integrity, effective monitoring, and appropriate 
and prompt implementation of the activities under this 
Act. 
SEC. 330. REPORT OF INFORMATION AND EVALUATIONS TO 
CONGRESS AND THE PUBLIC. 
The Secretary of Labor shall provide to the appro-
priate Committees of the Congress and make available to 
the public the information reported pursuant to section 
329 and the evaluations of activities carried out pursuant 
to the funds reserved under section 322(a)(1). 
SEC. 331. STATE. 
For purposes of this part, the term ‘‘State’’ has the 
meaning given that term in section 205 of the Federal- 
State Extended Unemployment Compensation Act of 1970 
(26 U.S.C. 3304 note). 
PART III—SHORT-TIME COMPENSATION 
PROGRAM 
SEC. 341. TEMPORARY FINANCING OF SHORT-TIME COM-
PENSATION PAYMENTS IN STATES WITH PRO-
GRAMS IN LAW. 
(a) PAYMENTS TO STATES.— 
(1) IN GENERAL.—Subject to paragraph (3), 
there shall be paid to a State an amount equal to 
100 percent of the amount of short-time compensa-
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175 
tion paid under a short-time compensation program 
(as defined in section 3306(v) of the Internal Rev-
enue Code of 1986) under the provisions of the 
State law. 
(2) TERMS OF PAYMENTS.—Payments made to 
a State under paragraph (1) shall be payable by way 
of reimbursement in such amounts as the Secretary 
estimates the State will be entitled to receive under 
this section for each calendar month, reduced or in-
creased, as the case may be, by any amount by 
which the Secretary finds that the Secretary’s esti-
mates for any prior calendar month were greater or 
less than the amounts which should have been paid 
to the State. Such estimates may be made on the 
basis of such statistical, sampling, or other method 
as may be agreed upon by the Secretary and the 
State agency of the State involved. 
(3) LIMITATIONS ON PAYMENTS.— 
(A) GENERAL
PAYMENT
LIMITATIONS.— 
No payments shall be made to a State under 
this section for short-time compensation paid to 
an individual by the State during a benefit year 
in excess of 26 times the amount of regular 
compensation (including dependents’ allow-
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176 
ances) under the State law payable to such in-
dividual for a week of total unemployment. 
(B) EMPLOYER
LIMITATIONS.—No pay-
ments shall be made to a State under this sec-
tion for benefits paid to an individual by the 
State under a short-time compensation program 
if such individual is employed by the partici-
pating employer on a seasonal, temporary, or 
intermittent basis. 
(b) APPLICABILITY.— 
(1) IN GENERAL.—Payments to a State under 
subsection (a) shall be available for weeks of unem-
ployment— 
(A) beginning on or after the date of the 
enactment of this Act; and 
(B) ending on or before the date that is 3 
years and 6 months after the date of the enact-
ment of this Act. 
(2) THREE-YEAR
FUNDING
LIMITATION
FOR 
COMBINED
PAYMENTS
UNDER
THIS
SECTION
AND 
SECTION 343.—States may receive payments under 
this section and section 343 with respect to a total 
of not more than 156 weeks. 
(c) TWO-YEAR TRANSITION PERIOD FOR EXISTING 
PROGRAMS.—During any period that the transition provi-
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177 
sion under section 341(a)(3) is applicable to a State with 
respect to a short-time compensation program, such State 
shall be eligible for payments under this section. Subject 
to paragraphs (1)(B) and (2) of subsection (b), if at any 
point after the date of the enactment of this Act the State 
enacts a State law providing for the payment of short- 
time compensation under a short-time compensation pro-
gram that meets the definition of such a program under 
section 3306(v) of the Internal Revenue Code of 1986, the 
State shall be eligible for payments under this section 
after the effective date of such enactment. 
(d) FUNDING AND CERTIFICATIONS.— 
(1) FUNDING.—There are appropriated, out of 
moneys in the Treasury not otherwise appropriated, 
such sums as may be necessary for purposes of car-
rying out this section. 
(2) 
CERTIFICATIONS.—The 
Secretary 
shall 
from time to time certify to the Secretary of the 
Treasury for payment to each State the sums pay-
able to such State under this section. 
(e) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(2) STATE; STATE AGENCY; STATE LAW.—The 
terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 
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178 
have the meanings given those terms in section 205 
of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note). 
SEC. 342. TEMPORARY FINANCING OF SHORT-TIME COM-
PENSATION AGREEMENTS. 
(a) FEDERAL-STATE AGREEMENTS.— 
(1) IN GENERAL.—Any State which desires to 
do so may enter into, and participate in, an agree-
ment under this section with the Secretary provided 
that such State’s law does not provide for the pay-
ment of short-time compensation under a short-time 
compensation program (as defined in section 
3306(v) of the Internal Revenue Code of 1986). 
(2) ABILITY TO TERMINATE.—Any State which 
is a party to an agreement under this section may, 
upon providing 30 days’ written notice to the Sec-
retary, terminate such agreement. 
(b) PROVISIONS OF FEDERAL-STATE AGREEMENT.— 
(1) IN GENERAL.—Any agreement under this 
section shall provide that the State agency of the 
State will make payments of short-time compensa-
tion under a plan approved by the State. Such plan 
shall provide that payments are made in accordance 
with the requirements under section 3306(v) of the 
Internal Revenue Code of 1986. 
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179 
(2) LIMITATIONS ON PLANS.— 
(A) GENERAL PAYMENT LIMITATIONS.—A 
short-time compensation plan approved by a 
State shall not permit the payment of short- 
time compensation to an individual by the State 
during a benefit year in excess of 26 times the 
amount of regular compensation (including de-
pendents’ allowances) under the State law pay-
able to such individual for a week of total un-
employment. 
(B) EMPLOYER
LIMITATIONS.—A short- 
time compensation plan approved by a State 
shall not provide payments to an individual if 
such individual is employed by the participating 
employer on a seasonal, temporary, or intermit-
tent basis. 
(3) EMPLOYER
PAYMENT
OF
COSTS.—Any 
short-time compensation plan entered into by an em-
ployer must provide that the employer will pay the 
State an amount equal to one-half of the amount of 
short-time compensation paid under such plan. Such 
amount shall be deposited in the State’s unemploy-
ment fund and shall not be used for purposes of cal-
culating an employer’s contribution rate under sec-
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180 
tion 3303(a)(1) of the Internal Revenue Code of 
1986. 
(c) PAYMENTS TO STATES.— 
(1) IN GENERAL.—There shall be paid to each 
State with an agreement under this section an 
amount equal to— 
(A) one-half of the amount of short-time 
compensation paid to individuals by the State 
pursuant to such agreement; and 
(B) any additional administrative expenses 
incurred by the State by reason of such agree-
ment (as determined by the Secretary). 
(2) TERMS OF PAYMENTS.—Payments made to 
a State under paragraph (1) shall be payable by way 
of reimbursement in such amounts as the Secretary 
estimates the State will be entitled to receive under 
this section for each calendar month, reduced or in-
creased, as the case may be, by any amount by 
which the Secretary finds that the Secretary’s esti-
mates for any prior calendar month were greater or 
less than the amounts which should have been paid 
to the State. Such estimates may be made on the 
basis of such statistical, sampling, or other method 
as may be agreed upon by the Secretary and the 
State agency of the State involved. 
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181 
(3) FUNDING.—There are appropriated, out of 
moneys in the Treasury not otherwise appropriated, 
such sums as may be necessary for purposes of car-
rying out this section. 
(4) 
CERTIFICATIONS.—The 
Secretary 
shall 
from time to time certify to the Secretary of the 
Treasury for payment to each State the sums pay-
able to such State under this section. 
(d) APPLICABILITY.— 
(1) IN GENERAL.—An agreement entered into 
under this section shall apply to weeks of unemploy-
ment— 
(A) beginning on or after the date on 
which such agreement is entered into; and 
(B) ending on or before the date that is 2 
years and 13 weeks after the date of the enact-
ment of this Act. 
(2) TWO-YEAR
FUNDING
LIMITATION.—States 
may receive payments under this section with re-
spect to a total of not more than 104 weeks. 
(e) SPECIAL RULE.—If a State has entered into an 
agreement under this section and subsequently enacts a 
State law providing for the payment of short-time com-
pensation under a short-time compensation program that 
meets the definition of such a program under section 
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182 
3306(v) of the Internal Revenue Code of 1986, the 
State— 
(1) shall not be eligible for payments under this 
section for weeks of unemployment beginning after 
the effective date of such State law; and 
(2) subject to paragraphs (1)(B) and (2) of sec-
tion 342(b), shall be eligible to receive payments 
under section 342 after the effective date of such 
State law. 
(f) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(2) STATE; STATE AGENCY; STATE LAW.—The 
terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 
have the meanings given those terms in section 205 
of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note). 
SEC. 343. GRANTS FOR SHORT-TIME COMPENSATION PRO-
GRAMS. 
(a) GRANTS.— 
(1) FOR IMPLEMENTATION OR IMPROVED AD-
MINISTRATION.—The Secretary shall award grants 
to States that enact short-time compensation pro-
grams (as defined in subsection (i)(2)) for the pur-
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183 
pose of implementation or improved administration 
of such programs. 
(2) FOR PROMOTION AND ENROLLMENT.—The 
Secretary shall award grants to States that are eligi-
ble and submit plans for a grant under paragraph 
(1) for such States to promote and enroll employers 
in short-time compensation programs (as so de-
fined). 
(3) ELIGIBILITY.— 
(A) IN GENERAL.—The Secretary shall de-
termine eligibility criteria for the grants under 
paragraphs (1) and (2). 
(B) 
CLARIFICATION.—A 
State 
admin-
istering a short-time compensation program, in-
cluding a program being administered by a 
State that is participating in the transition 
under the provisions of sections 341(a)(3) and 
342(c), that does not meet the definition of a 
short-time compensation program under section 
3306(v) of the Internal Revenue Code of 1986, 
and a State with an agreement under section 
342, shall not be eligible to receive a grant 
under this section until such time as the State 
law of the State provides for payments under a 
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184 
short-time compensation program that meets 
such definition and such law. 
(b) AMOUNT OF GRANTS.— 
(1) IN GENERAL.—The maximum amount avail-
able for making grants to a State under paragraphs 
(1) and (2) shall be equal to the amount obtained 
by multiplying $700,000,000 (less the amount used 
by the Secretary under subsection (e)) by the same 
ratio as would apply under subsection (a)(2)(B) of 
section 903 of the Social Security Act (42 U.S.C. 
1103) for purposes of determining such State’s 
share of any excess amount (as described in sub-
section (a)(1) of such section) that would have been 
subject to transfer to State accounts, as of October 
1, 2013, under the provisions of subsection (a) of 
such section. 
(2) AMOUNT
AVAILABLE
FOR
DIFFERENT 
GRANTS.—Of the maximum incentive payment deter-
mined under paragraph (1) with respect to a 
State— 
(A) one-third shall be available for a grant 
under subsection (a)(1); and 
(B) two-thirds shall be available for a 
grant under subsection (a)(2). 
(c) GRANT APPLICATION AND DISBURSAL.— 
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185 
(1) APPLICATION.—Any State seeking a grant 
under paragraph (1) or (2) of subsection (a) shall 
submit an application to the Secretary at such time, 
in such manner, and complete with such information 
as the Secretary may require. In no case may the 
Secretary award a grant under this section with re-
spect to an application that is submitted after De-
cember 31, 2016. 
(2) NOTICE.—The Secretary shall, within 30 
days after receiving a complete application, notify 
the State agency of the State of the Secretary’s find-
ings with respect to the requirements for a grant 
under paragraph (1) or (2) (or both) of subsection 
(a). 
(3) CERTIFICATION.—If the Secretary finds 
that the State law provisions meet the requirements 
for a grant under subsection (a), the Secretary shall 
thereupon make a certification to that effect to the 
Secretary of the Treasury, together with a certifi-
cation as to the amount of the grant payment to be 
transferred to the State account in the Unemploy-
ment Trust Fund (as established in section 904(a) 
of the Social Security Act (42 U.S.C. 1104(a))) pur-
suant to that finding. The Secretary of the Treasury 
shall make the appropriate transfer to the State ac-
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186 
count within 7 days after receiving such certifi-
cation. 
(4) REQUIREMENT.—No certification of compli-
ance with the requirements for a grant under para-
graph (1) or (2) of subsection (a) may be made with 
respect to any State whose— 
(A) State law is not otherwise eligible for 
certification under section 303 of the Social Se-
curity Act (42 U.S.C. 503) or approvable under 
section 3304 of the Internal Revenue Code of 
1986; or 
(B) short-time compensation program is 
subject to discontinuation or is not scheduled to 
take effect within 12 months of the certifi-
cation. 
(d) USE
OF FUNDS.—The amount of any grant 
awarded under this section shall be used for the implemen-
tation of short-time compensation programs and the over-
all administration of such programs and the promotion 
and enrollment efforts associated with such programs, 
such as through— 
(1) the creation or support of rapid response 
teams to advise employers about alternatives to lay-
offs; 
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(2) the provision of education or assistance to 
employers to enable them to assess the feasibility of 
participating in short-time compensation programs; 
and 
(3) the development or enhancement of systems 
to automate— 
(A) the submission and approval of plans; 
and 
(B) the filing and approval of new and on-
going short-time compensation claims. 
(e) ADMINISTRATION.—The Secretary is authorized 
to use 0.25 percent of the funds available under subsection 
(g) to provide for outreach and to share best practices with 
respect to this section and short-time compensation pro-
grams. 
(f) RECOUPMENT.—The Secretary shall establish a 
process under which the Secretary shall recoup the 
amount of any grant awarded under paragraph (1) or (2) 
of subsection (a) if the Secretary determines that, during 
the 5-year period beginning on the first date that any such 
grant is awarded to the State, the State— 
(1) terminated the State’s short-time compensa-
tion program; or 
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188 
(2) failed to meet appropriate requirements 
with respect to such program (as established by the 
Secretary). 
(g) FUNDING.—There are appropriated, out of mon-
eys in the Treasury not otherwise appropriated, to the 
Secretary, $700,000,000 to carry out this section, to re-
main available without fiscal year limitation. 
(h) REPORTING.—The Secretary may establish re-
porting requirements for States receiving a grant under 
this section in order to provide oversight of grant funds. 
(i) DEFINITIONS.—In this section: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Labor. 
(2) SHORT-TIME
COMPENSATION
PROGRAM.— 
The term ‘‘short-time compensation program’’ has 
the meaning given such term in section 3306(v) of 
the Internal Revenue Code of 1986. 
(3) STATE; STATE AGENCY; STATE LAW.—The 
terms ‘‘State’’, ‘‘State agency’’, and ‘‘State law’’ 
have the meanings given those terms in section 205 
of the Federal-State Extended Unemployment Com-
pensation Act of 1970 (26 U.S.C. 3304 note). 
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189 
SEC. 344. ASSISTANCE AND GUIDANCE IN IMPLEMENTING 
PROGRAMS. 
(a) IN GENERAL.—In order to assist States in estab-
lishing, qualifying, and implementing short-time com-
pensation programs (as defined in section 3306(v) of the 
Internal Revenue Code of 1986), the Secretary of Labor 
(in this section referred to as the ‘‘Secretary’’) shall— 
(1) develop model legislative language which 
may be used by States in developing and enacting 
such programs and periodically review and revise 
such model legislative language; 
(2) provide technical assistance and guidance in 
developing, enacting, and implementing such pro-
grams; and 
(3) establish reporting requirements for States, 
including reporting on— 
(A) the number of estimated averted lay-
offs; 
(B) the number of participating employers 
and workers; and 
(C) such other items as the Secretary of 
Labor determines are appropriate. 
(b) MODEL LANGUAGE AND GUIDANCE.—The model 
language and guidance developed under subsection (a) 
shall allow sufficient flexibility by States and participating 
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190 
employers while ensuring accountability and program in-
tegrity. 
(c) CONSULTATION.—In developing the model legisla-
tive language and guidance under subsection (a), and in 
order to meet the requirements of subsection (b), the Sec-
retary shall consult with employers, labor organizations, 
State workforce agencies, and other program experts. 
SEC. 345. REPORTS. 
(a) REPORTS.— 
(1) IN GENERAL.—Not later than 4 years after 
the date of the enactment of this Act, the Secretary 
of Labor shall submit to Congress and to the Presi-
dent a report or reports on the implementation of 
the provisions of this Act. 
(2) REQUIREMENTS.—Any report under para-
graph (1) shall at a minimum include the following: 
(A) A description of best practices by 
States and employers in the administration, 
promotion, and use of short-time compensation 
programs (as defined in section 3306(v) of the 
Internal Revenue Code of 1986). 
(B) An analysis of the significant chal-
lenges to State enactment and implementation 
of short-time compensation programs. 
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191 
(C) A survey of employers in States that 
have not enacted a short-time compensation 
program or entered into an agreement with the 
Secretary on a short-time compensation plan to 
determine the level of interest among such em-
ployers in participating in short-time compensa-
tion programs. 
(b) FUNDING.—There are appropriated, out of any 
moneys in the Treasury not otherwise appropriated, to the 
Secretary of Labor, $1,500,000 to carry out this section, 
to remain available without fiscal year limitation. 
Subtitle B—Long-Term 
Unemployed Hiring Preferences 
SEC. 351. LONG-TERM UNEMPLOYED WORKERS WORK OP-
PORTUNITY TAX CREDITS. 
(a) IN GENERAL.—Section 51(b)(3) of the Internal 
Revenue Code is amended by inserting ‘‘$10,000 per year 
in the case of any individual who is a qualified long-term 
unemployed individual by reason of subsection (d)(11), 
and’’ before ‘‘$12,000 per year’’. 
(b) LONG-TERM UNEMPLOYED INDIVIDUALS TAX 
CREDITS.—Section 51(d) of such Code is amended— 
(1) in paragraph (1), by striking ‘‘or’’ at the 
end of subparagraph (H), by striking the period at 
the end of subparagraph (I) and inserting ‘‘, or’’, 
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192 
and by inserting after subparagraph (I) the fol-
lowing: 
‘‘(J) a qualified long-term unemployed in-
dividual.’’, and 
(2) by redesignating paragraphs (11) through 
(14) as paragraphs (12) through (15), respectively, 
and by inserting after paragraph (10) the following 
new paragraph: 
‘‘(11) QUALIFIED
LONG-TERM
UNEMPLOYED 
INDIVIDUAL.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
long-term unemployed individual’ means any in-
dividual who was not a student for at least 6 
months during the 1-year period ending on the 
hiring date and is certified by the designated 
local agency as having aggregate periods of un-
employment during the 1-year period ending on 
the hiring date which equal or exceed 6 months. 
‘‘(B) STUDENT.—For purposes of this sub-
section, a student is an individual enrolled at 
least half-time in a program that leads to a de-
gree, certificate, or other recognized educational 
credential for at least 6 months whether or not 
consecutive during the 1-year period ending on 
the hiring date.’’. 
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193 
(c) SIMPLIFIED CERTIFICATION.—Section 51(d) of 
such Code, as amended by subsection (b), is amended by 
adding at the end the following new paragraph: 
‘‘(16) CREDIT ALLOWED FOR QUALIFIED LONG- 
TERM UNEMPLOYED INDIVIDUALS.— 
‘‘(A) IN
GENERAL.—Any qualified long- 
term unemployed individual under paragraph 
(11) will be treated as certified by the des-
ignated local agency as having aggregate peri-
ods of unemployment if the individual is cer-
tified by the designated local agency as being in 
receipt of unemployment compensation under 
State or Federal law for not less than 6 months 
during the 1-year period ending on the hiring 
date. 
‘‘(B) REGULATORY AUTHORITY.—The Sec-
retary may provide alternative methods for cer-
tification as a qualified long-term unemployed 
individual under paragraph (11), at the Sec-
retary’s discretion.’’. 
(d) CREDIT MADE AVAILABLE TO TAX-EXEMPT EM-
PLOYERS IN CERTAIN CIRCUMSTANCES.—Section 3111(e) 
of such Code is amended— 
(1) in the heading for the subsection is amend-
ed by inserting ‘‘AND QUALIFIED LONG-TERM UN-
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194 
EMPLOYED INDIVIDUALS’’ after ‘‘QUALIFIED VET-
ERANS’’, 
(2) in paragraph (1) by inserting ‘‘or qualified 
long-term unemployed individual’’ after ‘‘qualified 
veteran’’, 
(3) in paragraph (2) by inserting ‘‘and qualified 
long-term unemployed individuals’’ after ‘‘qualified 
veterans’’, 
(4) in paragraph (3)(C) by inserting ‘‘and 
qualified long-term unemployed individual, as the 
case may be,’’ after ‘‘qualified veteran’’, 
(5) in paragraph (4) by inserting ‘‘or qualified 
long-term unemployed individual’’ after ‘‘qualified 
veteran’’ both places it appears, and 
(6) in paragraph (5) by striking ‘‘and’’ at the 
end of subparagraph (A), by striking the period at 
the end of subparagraph (B) and inserting ‘‘, and’’, 
and by adding at the end the following: 
‘‘(C) the term ‘qualified long-term unem-
ployed individual’ has meaning given such term 
by section 51(d)(11).’’. 
(e) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR
CODE
POSSESSIONS.—The 
Secretary of the Treasury shall pay to each pos-
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195 
session of the United States with a mirror code 
tax system amounts equal to the loss to that 
possession by reason of the amendments made 
by this section. Such amounts shall be deter-
mined by the Secretary of the Treasury based 
on information provided by the government of 
the respective possession of the United States. 
(B) OTHER POSSESSIONS.—The Secretary 
of the Treasury shall pay to each possession of 
the United States which does not have a mirror 
code tax system the amount estimated by the 
Secretary of the Treasury as being equal to the 
loss to that possession that would have occurred 
by reason of the amendments made by this sec-
tion if a mirror code tax system had been in ef-
fect in such possession. The preceding sentence 
shall not apply with respect to any possession 
of the United States unless such possession es-
tablishes to the satisfaction of the Secretary 
that the possession has implemented (or, at the 
discretion of the Secretary, will implement) an 
income tax benefit which is substantially equiv-
alent to the income tax credit in effect after the 
amendments made by this section. 
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(2) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST
UNITED
STATES
INCOME
TAXES.—The 
credit allowed against United States income taxes 
for any taxable year under the amendments made by 
this section to section 51 of the Internal Revenue 
Code of 1986 to any person with respect to any 
qualified long-term unemployed individual shall be 
reduced by the amount of any credit (or other tax 
benefit described in paragraph (1)(B)) allowed to 
such person against income taxes imposed by the 
possession of the United States by reason of this 
subsection with respect to such qualified long-term 
unemployed individual for such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) 
POSSESSION
OF
THE
UNITED 
STATES.—For purposes of this subsection, the 
term ‘‘possession of the United States’’ includes 
American Samoa, Guam, the Commonwealth of 
the Northern Mariana Islands, the Common-
wealth of Puerto Rico, and the United States 
Virgin Islands. 
(B) MIRROR CODE TAX SYSTEM.—For pur-
poses of this subsection, the term ‘‘mirror code 
tax system’’ means, with respect to any posses-
sion of the United States, the income tax sys-
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197 
tem of such possession if the income tax liabil-
ity of the residents of such possession under 
such system is determined by reference to the 
income tax laws of the United States as if such 
possession were the United States. 
(C) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324(b)(2) of title 31, United 
States Code, the payments under this sub-
section shall be treated in the same manner as 
a refund due from credit provisions described in 
such section. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to individuals who begin work for 
the employer after the date of the enactment of this Act. 
Subtitle C—Pathways Back to 
Work 
SEC. 361. SHORT TITLE. 
This subtitle may be cited as the ‘‘Pathways Back 
to Work Act of 2015’’. 
SEC. 362. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to the Sec-
retary of Labor $5,000,000,000 to carry out this subtitle. 
SEC. 363. AVAILABILITY OF FUNDS. 
(a) IN GENERAL.—Of the amounts available under 
section 362(b), the Secretary of Labor shall— 
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(1) allot $2,000,000,000 in accordance with 
section 364 to provide subsidized employment to un-
employed, low-income adults; 
(2) allot $1,500,000,000 in accordance with 
section 365 to provide summer and year-round em-
ployment opportunities to low-income youth; and 
(3) award $1,500,000,000 in competitive grants 
in accordance with section 366 to local entities to 
carry out work-based training and other work-re-
lated and educational strategies and activities of 
demonstrated effectiveness to unemployed, low-in-
come adults and low-income youth to provide the 
skills and assistance needed to obtain employment. 
(b) RESERVATION.—The Secretary of Labor may re-
serve not more than 1 percent of amounts available under 
each of paragraphs (1) through (3) of subsection (a) for 
the costs of technical assistance, evaluations and Federal 
administration of this Act. 
(c) PERIOD OF AVAILABILITY.—The amounts appro-
priated under this Act shall be available for obligation by 
the Secretary of Labor until December 31, 2016, and shall 
be available for expenditure by grantees and subgrantees 
until September 30, 2017. 
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199 
SEC. 364. SUBSIDIZED EMPLOYMENT FOR UNEMPLOYED, 
LOW-INCOME ADULTS. 
(a) IN GENERAL.— 
(1) ALLOTMENTS.—From the funds available 
under section 363(a)(1), the Secretary of Labor 
shall make an allotment under subsection (b) to each 
State that has a State plan approved under sub-
section (c) and to each outlying area and Native 
American grantee under section 166 of the Work-
force Innovation and Opportunity Act that meets the 
requirements of this section, for the purpose of pro-
viding subsidized employment opportunities to unem-
ployed, low-income adults. 
(2) GUIDANCE.—Not later than 30 days after 
the date of enactment of this Act, the Secretary of 
Labor, in coordination with the Secretary of Health 
and Human Services, shall issue guidance regarding 
the implementation of this section. Such guidance 
shall, consistent with this section, include procedures 
for the submission and approval of State and local 
plans and the allotment and allocation of funds, in-
cluding reallotment and reallocation of such funds, 
that promote the expeditious and effective implemen-
tation of the activities authorized under this section. 
(b) STATE ALLOTMENTS.— 
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(1) RESERVATIONS FOR OUTLYING AREAS AND 
TRIBES.—Of the funds described subsection (a)(1), 
the Secretary shall reserve— 
(A) not more than one-quarter of one per-
cent to provide assistance to outlying areas to 
provide subsidized employment to low-income 
adults who are unemployed; and 
(B) 1.5 percent to provide assistance to 
grantees of the Native American programs 
under section 166 of the Workforce Innovation 
and Opportunity Act to provide subsidized em-
ployment to low-income adults who are unem-
ployed. 
(2) STATES.—After determining the amounts to 
be reserved under paragraph (1), the Secretary of 
Labor shall allot the remainder of the amounts de-
scribed in subsection (a)(1) among the States as fol-
lows— 
(A) one-third shall be allotted on the basis 
of the relative number of unemployed individ-
uals in areas of substantial unemployment in 
each State, compared to the total number of 
unemployed individuals in areas of substantial 
unemployment in all States; 
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201 
(B) one-third shall be allotted on the basis 
of the relative excess number of unemployed in-
dividuals in each State, compared to the total 
excess number of unemployed individuals in all 
States; and 
(C) one-third shall be allotted on the basis 
of the relative number of disadvantaged adults 
and youth in each State, compared to the total 
number of disadvantaged adults and youth in 
all States. 
(3) DEFINITIONS.—For purposes of the for-
mula described in paragraph (2)— 
(A) AREA
OF
SUBSTANTIAL
UNEMPLOY-
MENT.—The term ‘‘area of substantial unem-
ployment’’ means any contiguous area with a 
population of at least 10,000 and that has an 
average rate of unemployment of at least 6.5 
percent for the most recent 12 months, as de-
termined by the Secretary. 
(B) 
DISADVANTAGED
ADULTS
AND 
YOUTH.—The term ‘‘disadvantaged adults and 
youth’’ means an individual who is age 16 and 
older who received an income, or is a member 
of a family that received a total family income, 
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202 
that, in relation to family size, does not exceed 
the higher of— 
(i) the poverty line; or 
(ii) 70 percent of the lower living 
standard income level. 
(C) EXCESS NUMBER.—The term ‘‘excess 
number’’ means, used with respect to the excess 
number of unemployed individuals within a 
State, the higher of— 
(i) the number that represents the 
number of unemployed individuals in ex-
cess of 4.5 percent of the civilian labor 
force in the State; or 
(ii) the number that represents the 
number of unemployed individuals in ex-
cess of 4.5 percent of the civilian labor 
force in areas of substantial unemployment 
in such State. 
(4) REALLOTMENT.—If the Governor of a State 
does not submit a State plan by the time specified 
in subsection (c), or a State does not receive ap-
proval of a State plan, the amount the State would 
have been eligible to receive pursuant to the formula 
under paragraph (2) shall be added to the amounts 
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203 
available for the competitive grants under section 
363(a)(3). 
(c) STATE PLAN.— 
(1) IN GENERAL.—For a State to be eligible to 
receive an allotment of the funds under subsection 
(b), the Governor of the State shall submit to the 
Secretary of Labor a State plan in such form and 
containing such information as the Secretary may 
require. At a minimum, such plan shall include— 
(A) a description of the strategies and ac-
tivities to be carried out by the State, in coordi-
nation with employers in the State, to provide 
subsidized employment opportunities to unem-
ployed, low-income adults, including strategies 
relating to the level and duration of subsidies 
consistent with subsection (e)(2); 
(B) a description of the requirements the 
State will apply relating to the eligibility of un-
employed, low-income adults, consistent with 
section 368(6), for subsidized employment op-
portunities, which may include criteria to target 
assistance to particular categories of such 
adults, such as individuals with disabilities or 
individuals who have exhausted all rights to un-
employment compensation; 
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204 
(C) a description of how the funds allotted 
to provide subsidized employment opportunities 
will be administered in the State and local 
areas, in accordance with subsection (d); 
(D) a description of the performance out-
comes to be achieved by the State through the 
activities carried out under this section and the 
processes the State will use to track perform-
ance, consistent with guidance provided by the 
Secretary of Labor regarding such outcomes 
and processes and with section 367(b); 
(E) a description of the coordination of ac-
tivities to be carried out with the funds pro-
vided under this section with activities under 
title I of the Workforce Innovation and Oppor-
tunity Act, the TANF program under part A of 
title IV of the Social Security Act, and other 
appropriate Federal and State programs that 
may assist unemployed, low-income adults in 
obtaining and retaining employment; 
(F) a description of the timelines for im-
plementation of the activities described in sub-
paragraph (A), and the number of unemployed, 
low-income adults expected to be placed in sub-
sidized employment by quarter; 
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205 
(G) assurances that the State will report 
such information as the Secretary of Labor may 
require relating to fiscal, performance and other 
matters that the Secretary determines is nec-
essary to effectively monitor the activities car-
ried out under this section; and 
(H) assurances that the State will ensure 
compliance with the labor standards and protec-
tions described in section 367(a) of this Act. 
(2) SUBMISSION
AND
APPROVAL
OF
STATE 
PLAN.— 
(A) SUBMISSION
WITH
OTHER
PLANS.— 
The State plan described in this subsection may 
be submitted in conjunction with the State plan 
modification or request for funds required 
under section 365, and may be submitted as a 
modification to a State plan that has been ap-
proved under section 102 or 103 of the Work-
force Innovation and Opportunity Act. 
(B) SUBMISSION AND APPROVAL.— 
(i) SUBMISSION.—The Governor shall 
submit a plan to the Secretary of Labor 
not later than 75 days after the enactment 
of this Act and the Secretary of Labor 
shall make a determination regarding the 
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206 
approval or disapproval of such plans not 
later than 45 days after the submission of 
such plan. If the plan is disapproved, the 
Secretary of Labor may provide a reason-
able period of time in which a disapproved 
plan may be amended and resubmitted for 
approval. 
(ii) APPROVAL.—The Secretary of 
Labor shall approve a State plan that the 
Secretary determines is consistent with re-
quirements of this section and reasonably 
appropriate and adequate to carry out the 
purposes of this section. If the plan is ap-
proved, the Secretary shall allot funds to 
States within 30 days after such approval. 
(3) MODIFICATIONS
TO
STATE
PLAN.—The 
Governor may submit a modification to a State plan 
under this subsection consistent with the require-
ments of this section. 
(d) ADMINISTRATION WITHIN THE STATE.— 
(1) OPTION.—The State may administer the 
funds for activities under this section through— 
(A) the State and local entities responsible 
for the administration of the adult formula pro-
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207 
gram under subtitle B of title I of the Work-
force Innovation and Opportunity Act; 
(B) the entities responsible for the admin-
istration of the TANF program under part A of 
title IV of the Social Security Act; or 
(C) a combination of the entities described 
in subparagraphs (A) and (B). 
(2) WITHIN-STATE ALLOCATIONS.— 
(A) ALLOCATION
OF
FUNDS.—The Gov-
ernor may reserve up to 5 percent of the allot-
ment under subsection (b)(2) for administration 
and technical assistance, and shall allocate the 
remainder, in accordance with the option elect-
ed under paragraph (1)— 
(i) among local workforce investment 
areas within the State in accordance with 
the factors identified in subsection (b)(2), 
except that for purposes of such allocation 
references to a State in such paragraph 
shall be deemed to be references to a local 
workforce investment area and references 
to all States shall be deemed to be ref-
erences to all local areas in the State in-
volved, of which not more than 10 percent 
of the funds allocated to a local workforce 
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208 
investment area may be used for the costs 
of administration of this section; or 
(ii) through entities responsible for 
the administration of the TANF program 
under part A of title IV of the Social Secu-
rity Act in local areas in such manner as 
the State may determine appropriate. 
(B) LOCAL PLANS.— 
(i) IN GENERAL.—In the case where 
the responsibility for the administration of 
activities is to be carried out by the enti-
ties described under paragraph (1)(A), in 
order to receive an allocation under sub-
paragraph (A)(i), a local workforce invest-
ment board, in partnership with the chief 
elected official of the local workforce in-
vestment area involved, shall submit to the 
Governor a local plan for the use of such 
funds under this section not later than 30 
days after the submission of the State 
plan. Such local plan may be submitted as 
a modification to a local plan approved 
under section 108 of the Workforce Inno-
vation and Opportunity Act. 
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209 
(ii) CONTENTS.—The local plan de-
scribed in clause (i) shall contain the ele-
ments described in subparagraphs (A)–(H) 
of subsection (c)(1), as applied to the local 
workforce investment area. 
(iii) APPROVAL.—The Governor shall 
approve or disapprove the local plan sub-
mitted under clause (i) within 30 days 
after submission, or if later, 30 days after 
the approval of the State plan. The Gov-
ernor shall approve the plan unless the 
Governor determines that the plan is in-
consistent with requirements of this section 
or is not reasonably appropriate and ade-
quate to carry out the purposes of this sec-
tion. If the Governor has not made a de-
termination within the period specified 
under the first sentence of this clause, the 
plan shall be considered approved. If the 
plan is disapproved, the Governor may pro-
vide a reasonable period of time in which 
a disapproved plan may be amended and 
resubmitted for approval. The Governor 
shall allocate funds to local workforce in-
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210 
vestment areas with approved plans within 
30 days after such approval. 
(C) REALLOCATION OF FUNDS TO LOCAL 
AREAS.—If a local workforce investment board 
does not submit a local plan by the time speci-
fied in subparagraph (B) or the Governor does 
not approve a local plan, the amount the local 
workforce investment area would have been eli-
gible to receive pursuant to the formula under 
subparagraph (A)(i) shall be allocated to local 
workforce investment areas that receive ap-
proval of the local plan under subparagraph 
(B). Such reallocations shall be made in accord-
ance with the relative share of the allocations to 
such local workforce investment areas applying 
the formula factors described under subpara-
graph (A)(i). 
(e) USE OF FUNDS.— 
(1) IN GENERAL.—The funds under this section 
shall be used to provide subsidized employment for 
unemployed, low-income adults. The State and local 
entities described in subsection (d)(1) may use a va-
riety of strategies in recruiting employers and identi-
fying appropriate employment opportunities, with a 
priority to be provided to employment opportunities 
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217 
submitted in conjunction with the State plan re-
quired under section 364. 
(B) APPROVAL.—The Secretary of Labor 
shall approve the plan or request submitted 
under subparagraph (A) within 30 days after 
submission, unless the Secretary determines 
that the plan or request is inconsistent with the 
requirements of this section. If the Secretary 
has not made a determination within 30 days, 
the plan or request shall be considered ap-
proved. If the plan or request is disapproved, 
the Secretary may provide a reasonable period 
of time in which a disapproved plan or request 
may be amended and resubmitted for approval. 
If the plan or request is approved, the Sec-
retary shall allot funds to States within 30 days 
after such approval. 
(3) MODIFICATIONS
TO
STATE
PLAN
OR
RE-
QUEST.—The Governor may submit further modi-
fications to a State plan or request for funds identi-
fied under subsection (b) to carry out this section in 
accordance with the requirements of this section. 
(e) WITHIN-STATE ALLOCATION AND ADMINISTRA-
TION.— 
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218 
(1) IN GENERAL.—Of the funds allotted to the 
State under subsection (c), the Governor— 
(A) may reserve up to 5 percent of the al-
lotment for administration and technical assist-
ance; and 
(B) shall allocate the remainder of the al-
lotment among local workforce investment areas 
within the State in accordance with the factors 
identified in section 364(b)(2), except that for 
purposes of such allocation references to a 
State in such paragraph shall be deemed to be 
references to a local workforce investment area 
and references to all States shall be deemed to 
be references to all local areas in the State in-
volved. Not more than 10 percent of the funds 
allocated to a local workforce investment area 
may be used for the costs of administration of 
this section. 
(2) LOCAL PLAN.— 
(A) SUBMISSION.—In order to receive an 
allocation under paragraph (1)(B), the local 
workforce investment board, in partnership with 
the chief elected official for the local workforce 
investment area involved, shall submit to the 
Governor a modification to a local plan ap-
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219 
proved under section 108 of the Workforce In-
novation and Opportunity Act, or other form of 
request for funds as may be identified in the 
guidance issued under subsection (b), not later 
than 30 days after the submission by the State 
of the modification to the State plan or other 
request for funds identified in subsection (b), 
describing the strategies and activities to be 
carried out under this section. 
(B) APPROVAL.—The Governor shall ap-
prove the local plan submitted under subpara-
graph (A) within 30 days after submission, un-
less the Governor determines that the plan is 
inconsistent with requirements of this section. 
If the Governor has not made a determination 
within 30 days, the plan shall be considered ap-
proved. If the plan is disapproved, the Governor 
may provide a reasonable period of time in 
which a disapproved plan may be amended and 
resubmitted for approval. The Governor shall 
allocate funds to local workforce investment 
areas with approved plans within 30 days after 
approval. 
(3) REALLOCATION.—If a local workforce in-
vestment board does not submit a local plan modi-
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