the State program funded under this 
part or any other State program fund-
ed with qualified State expenditures 
(as defined in section 409(a)(7)(B)(i)) 
who, while such recipients, were re-
quired to be engaged in work in ac-
cordance with section 407, and are in 
unsubsidized employment during the 
2nd quarter after exiting from the 
program. 
‘‘(II) The percentage of former 
recipients of such assistance who are 
in unsubsidized employment during 
the 4th quarter after exiting from the 
program. 
‘‘(III) The percentage change in 
median earnings of former recipients 
of such assistance who are in unsub-
sidized employment in the 4th quarter 
after exiting from the program com-
pared with the median earnings of 
former recipients who are in unsub-
sidized employment in the 2nd quar-
ter after exiting from the program. 
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‘‘(iii) AGREEMENT
ON
REQUISITE 
PERFORMANCE
LEVEL
FOR
EACH
INDI-
CATOR.— 
‘‘(I) FISCAL
YEARS
2017
AND 
2018.—Each State shall reach agree-
ment with the Secretary on the req-
uisite level of performance for each in-
dicator described in clause (ii), for 
each of fiscal years 2017 and 2018. 
‘‘(II) FISCAL
YEARS
2019
AND 
2020.—Each State shall reach agree-
ment with the Secretary, before fiscal 
year 2019, on the requisite level of 
performance with respect to each indi-
cator described in clause (ii), for each 
of fiscal years 2019 and 2020. 
‘‘(D) REPORT ON STATE PERFORMANCE.— 
‘‘(i) IN GENERAL.—Not later than Oc-
tober 1, 2016, the Secretary shall develop 
a template which each State shall use to 
report on outcomes achieved under the 
State program funded under this part. 
‘‘(ii) CONTENTS.—Each such report 
shall include— 
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‘‘(I) the number of individuals 
who exited the program during the 
year; 
‘‘(II) the characteristics of the 
individuals who exited the program 
during the year, including information 
on the length of time for which the in-
dividual received assistance under the 
program; and 
‘‘(III) information specifying the 
levels of performance achieved with 
respect to each indicator described in 
subparagraph (C)(ii). 
‘‘(iii) PUBLICATION.—Not later than 
September 30 of fiscal year 2019 and of 
each succeeding fiscal year, the Secretary 
shall make available to the public electroni-
cally each report submitted under this sub-
paragraph during the fiscal year. 
‘‘(E) STATE FAILURE TO MEET PERFORM-
ANCE MEASURES.— 
‘‘(i) RESERVATION
OF
FUNDS; RE-
QUIRED STATE SPENDING.—If a State fails 
to achieve the requisite level of perform-
ance with respect to an indicator described 
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in subparagraph (C)(ii) of this paragraph 
and a fiscal year— 
‘‘(I) the Secretary shall reserve 
the funds that would have been pay-
able to the State under this paragraph 
if the State had achieved the level; 
and 
‘‘(II) the level of State expendi-
tures otherwise required to avoid a 
penalty under section 409(a)(7) in the 
succeeding fiscal year shall be in-
creased by the amount so reserved. 
‘‘(ii) CORRECTIVE ACTION.—The Sec-
retary shall award to a State all funds re-
served under clause (i) for the fiscal year 
with respect to the State, an indicator, and 
a fiscal year, in the immediately succeeding 
fiscal year, if, in the immediately suc-
ceeding fiscal year, the State— 
‘‘(I) achieves the requisite level of 
performance for the State with re-
spect to the indicator; or 
‘‘(II) improves the State’s level of 
performance with respect to the indi-
cator by at least half of the amount 
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by which the State’s requisite level of 
performance with respect to the indi-
cator in the fiscal year exceeded the 
actual level of performance achieved 
by the State with respect to the indi-
cator in the fiscal year. 
‘‘(F) FUNDING.—The following percent-
ages of the amounts appropriated under para-
graph (1)(C) for the following fiscal years are 
reserved for grants under this paragraph for 
the fiscal years: 
‘‘(i) 4 percent, in the case of fiscal 
year 2018. 
‘‘(ii) 10 percent, in the case of each of 
fiscal years 2019 and 2020.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
403(a)(1)(B) of such Act (42 U.S.C. 603(a)(1)(B)) is 
amended by inserting ‘‘, reduced by the percentage (if 
any) specified in paragraph (4)(F) with respect to the fis-
cal year,’’ before ‘‘as the amount’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this Act shall take effect on October 1, 2015. 
Æ 
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