I 
108TH CONGRESS 
1ST SESSION H. R. 2770
To amend part A of title IV of the Social Security Act to reauthorize 
and improve the operation of temporary assistance to needy families 
programs operated by Indian tribes, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 17, 2003
Mr. PALLONE introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Re-
sources, Transportation and Infrastructure, Education and the Work-
force, Agriculture, and Energy and Commerce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend part A of title IV of the Social Security Act 
to reauthorize and improve the operation of temporary 
assistance to needy families programs operated by Indian 
tribes, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Indian Welfare Reform Act’’.
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Funding for tribal TANF programs. 
Sec. 4. Economic development. 
Sec. 5. Tribal job training programs. 
Sec. 6. Child care and development block grant funds for Indian tribes. 
Sec. 7. Equitable access. 
Sec. 8. Areas of Indian country or Alaskan Native villages of high joblessness. 
Sec. 9. Parity in treatment of Alaskan Natives. 
Sec. 10. Authority of Indian tribes to receive Federal funds for foster care and 
adoption assistance. 
Sec. 11. Demonstration program to allow Indian tribes to determine eligibility 
for the food stamp, medicaid, and State children’s health insur-
ance programs. 
Sec. 12. Tribal child support enforcement programs. 
Sec. 13. Break the cycle demonstration grants. 
Sec. 14. Reservation of funds under the Social Services Block Grant. 
Sec. 15. Research on tribal welfare programs and poverty among Indians. 
Sec. 16. Effective date.
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) The Federal Government bears a unique 
trust responsibility for American Indians. 
(2) Despite this responsibility, Indians remain 
remarkably impoverished. According to the Bureau 
of the Census, 25.9 percent of American Indians live 
in poverty, more than twice the national poverty 
rate. The average household income for Indians in 
2000 was only 75 percent of that of the rest of 
Americans. 
(3) In some States with substantial Indian pop-
ulations, the percentage of the welfare caseload that 
is made up of Indians has increased since the enact-
ment of the Personal Responsibility and Work Op-
portunity Reconciliation Act of 1996 because some 
Indians face substantial barriers in moving from 
welfare to work. 
(4) A General Accounting Office review of data 
from the Bureau of the Census found that 25 of the 
26 counties in the United States with a majority of 
American Indians had poverty rates ‘‘significantly’’ 
higher than average. 
(5) Many Indian tribes are located in isolated 
rural areas that lack sufficient economic opportuni-
ties, including jobs and economic development, 
transportation services, child care, and other services 
necessary to ensure a successful transition from wel-
fare to work. 
(6) Tribal temporary assistance to needy fami-
lies programs have demonstrated remarkable success 
in moving Indians from welfare to work. 
(7) Tribal governments, unlike State govern-
ments, have not been afforded an opportunity to ad-
minister and fully participate in the Federal entitle-
ment program for foster care and adoption assist-
ance, a program Congress recognizes as an impor-
tant component of welfare services.
(8) Welfare reform has not brought enough 
change to Indian Country. Welfare reform has not, 
and will not, succeed unless it adequately addresses 
the unique barriers many Indians face in moving 
from welfare to work. 
SEC. 3. FUNDING FOR TRIBAL TANF PROGRAMS. 
(a) REAUTHORIZATION OF TRIBAL FAMILY ASSIST-
ANCE GRANTS.—Section 412(a)(1)(A) of the Social Secu-
rity Act (42 U.S.C. 612(a)(1)(A)) is amended by striking 
‘‘1997’’ and all that follows through ‘‘2002’’ and inserting 
‘‘2004 through 2008’’. 
(b) TRIBAL TANF IMPROVEMENT FUND.—
(1) IN GENERAL.—Section 412(a) of the Social 
Security Act (42 U.S.C. 612(a)) is amended by 
striking paragraph (2) and inserting the following: 
‘‘(2) TRIBAL TANF IMPROVEMENT GRANTS.—
‘‘(A) TRIBAL CAPACITY GRANTS.—
‘‘(i) IN GENERAL.—Of the amount ap-
propriated under subparagraph (E) for the 
period of fiscal years 2004 through 2008, 
$185,000,000 of such amount shall be 
used by the Secretary to award grants for 
tribal human services program infrastruc-
ture improvement (as defined in clause (v)) 
to—
‘‘(I) Indian tribes that have ap-
plied for approval of a tribal family 
assistance plan and that meet the re-
quirements of clause (ii)(I); 
‘‘(II) Indian tribes with an ap-
proved tribal family assistance plan 
and that meet the requirements of 
clause (ii)(II); 
‘‘(III) Indian tribes that have ap-
plied for approval of a foster care and 
adoption assistance program under 
section 479B or that plan to enter 
into, or have in place, a tribal-State 
cooperative agreement under section 
479B(c) and that meet the require-
ments of clause (ii)(III); and 
‘‘(IV) Indian tribes that are con-
ducting a tribal employment services 
program under a grant made under 
paragraph (4) and that meet the re-
quirements of clause (ii)(IV). 
‘‘(ii) PRIORITIES FOR AWARDING OF 
GRANTS.—The Secretary shall give priority 
in awarding grants under this subpara-
graph as follows:
‘‘(I) First, for grants to Indian 
tribes that have applied for approval 
of a tribal family assistance plan, that 
have not operated such a plan as of 
the date of enactment of the Amer-
ican Indian Welfare Reform Act, that 
will have such plan approved, and that 
include in the plan submission provi-
sions for tribal human services pro-
gram infrastructure improvement and 
related management information sys-
tems training. 
‘‘(II) Second, for Indian tribes 
with an approved tribal family assist-
ance plan that are not described in 
subclause (I) and that submit an ad-
dendum to such plan that includes 
provisions for tribal human services 
program infrastructure improvement 
that includes implementing or improv-
ing management information systems 
of the tribe (including management 
information systems training), as such 
systems relate to the operation of the 
tribal family assistance plan.
‘‘(III) Third, for Indian tribes 
that have applied for approval of a 
foster care and adoption assistance 
program under section 479B or that 
plan to enter into, or have in place, a 
tribal-State 
cooperative 
agreement 
under section 479B(c) and that in-
clude in the plan submission under 
section 471 (or in an addendum to 
such plan) provisions for tribal human 
services program infrastructure im-
provement and related management 
information systems training. 
‘‘(IV) Fourth, for Indian tribes 
that are conducting a tribal employ-
ment services program under a grant 
made under paragraph (4) and that 
provide the Secretary with a plan for 
tribal human services program infra-
structure improvement and related 
management 
information 
systems 
training. 
‘‘(iii) OTHER
REQUIREMENTS
FOR 
AWARDING GRANTS.—In awarding grants 
under this subparagraph, the Secretary—
‘‘(I) may not award an Indian 
tribe more than 1 grant under this 
subparagraph per fiscal year; 
‘‘(II) shall award grants in such 
a manner as to maximize the number 
of Indian tribes that receive grants 
under this subparagraph; and 
‘‘(III) shall consult with Indian 
tribes located throughout the United 
States. 
‘‘(iv) APPLICATION.—An Indian tribe 
desiring a grant under this subparagraph 
shall submit an application to the Sec-
retary, at such time, in such manner, and 
containing such information as the Sec-
retary may require. 
‘‘(v) DEFINITION
OF
HUMAN
SERV-
ICES
PROGRAM
INFRASTRUCTURE
IM-
PROVEMENT.—In this subparagraph, the 
term ‘human services program infrastruc-
ture improvement’ includes (but is not lim-
ited to) improvement of management infor-
mation systems, management information 
systems-related 
training, 
management 
training, equipping offices, and renovating,
but not constructing, buildings, as de-
scribed in an application for a grant under 
this subparagraph, and subject to approval 
by the Secretary. 
‘‘(B) ADJUSTED TRIBAL TANF GRANTS.—
‘‘(i) IN GENERAL.—Of the amount ap-
propriated under subparagraph (E) for the 
period of fiscal years 2005 through 2008, 
$140,000,000 of such amount shall be 
used by the Secretary to make supple-
mental grants for each of fiscal years 2005 
through 2008 to each Indian tribe that—
‘‘(I) has an approved tribal fam-
ily assistance plan; and 
‘‘(II) demonstrates that the num-
ber of Indian families receiving cash 
assistance under the tribal family as-
sistance plan as of the first quarter of 
the third year of the operation of such 
plan has increased by at least 20 per-
cent over such number for the first 
quarter of the first year of the oper-
ation of such plan. 
‘‘(ii) ALLOCATION
OF
FUNDS.—The 
Secretary, in consultation with Indian
tribes with approved tribal family assist-
ance plans, shall determine a formula for 
the allocation of $35,000,000 of the funds 
described in clause (i) for each fiscal year 
described in that clause in a manner that 
is proportionate to the size, service popu-
lation, and percentage increase in the num-
ber of Indian families served by each In-
dian tribe eligible for an adjusted grant 
under this subparagraph for that fiscal 
year. If the amount available for allocation 
for a fiscal year is less than the total 
amount of funds requested for allocation 
among the Indian tribes for that fiscal 
year, the Secretary shall allocate the funds 
among such tribes on a pro rata basis. 
‘‘(C) INCENTIVE GRANTS TO STATES THAT 
PROVIDE MAINTENANCE OF EFFORT SUPPORT 
TO INDIAN TRIBES.—
‘‘(i) IN GENERAL.—Subject to clause 
(ii), of the amount appropriated under sub-
paragraph 
(E), 
$40,000,000 
of 
such 
amount for each of fiscal years 2005 
through 2008 shall be used by the Sec-
retary to pay a State an amount equal to
50 percent of the total amount of qualified 
State expenditures (as defined in section 
409(a)(7)(B)(i)) incurred by the State for 
each such fiscal year for support of tribal 
family assistance plans. 
‘‘(ii) PRO RATA REDUCTIONS.—If the 
amount available for making payments 
under clause (i) for a fiscal year is less 
than the total amount of payments other-
wise required to be made under clause (i) 
for the fiscal year, then the amount other-
wise payable to any State for the fiscal 
year under clause (i) shall be reduced by a 
percentage equal to the amount available 
divided by the total amount of payments 
required for that fiscal year. 
‘‘(D) TECHNICAL ASSISTANCE.—
‘‘(i) IN GENERAL.—Of the amount ap-
propriated under subparagraph (E) for the 
period of fiscal years 2004 through 2008, 
$15,000,000 shall be used by the Secretary 
to provide technical assistance to Indian 
tribes—
‘‘(I) considering applying for or 
carrying out a grant made under this 
paragraph; 
‘‘(II) considering applying for or 
carrying out a tribal family assistance 
plan under this section; or 
‘‘(III) related to best practices 
and approaches for State and tribal 
coordination on the transfer of the ad-
ministration of social services pro-
grams to Indian tribes. 
‘‘(ii) RESERVATION OF FUNDS.—Not 
less than—
‘‘(I) $5,000,000 of the amount 
described in clause (i) shall be used by 
the Secretary to support through 
grants or contracts peer-learning pro-
grams among tribal administrators; 
and 
‘‘(II) $5,000,000 of such amount 
shall be used by the Secretary for 
making grants to Indian tribes to con-
duct feasibility studies of the capacity 
of Indian tribes to operate tribal fam-
ily assistance plans under this part.
‘‘(E) APPROPRIATION.—Out of any money 
in the Treasury of the United States not other-
wise appropriated, there are appropriated 
$500,000,000 for the period of fiscal years 
2004 through 2008 to carry out this paragraph. 
Amounts appropriated under this subparagraph 
shall remain available until expended.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
405(a) of the Social Security Act (42 U.S.C. 605(a)) 
is amended by striking ‘‘section 403’’ and inserting 
‘‘sections 403 and 412(a)(2)(C)’’. 
(c) ELIGIBILITY FOR HIGH PERFORMANCE BONUS 
AND CONTINGENCY FUND.—
(1) BONUS TO REWARD HIGH PERFORMANCE.—
(A) REAUTHORIZATION OF BONUS.—Sec-
tion 403(a)(4) of the Social Security Act (42 
U.S.C. 603(a)(4)) is amended—
(i) in subparagraph (E)(i), by striking 
‘‘1999’’ and all that follows through 
‘‘2003’’ and inserting ‘‘2005, 2006, 2007, 
2008, and 2009’’; and 
(ii) in subparagraph (F) by striking 
‘‘1999 through 2003’’ and inserting ‘‘2005 
through 2009’’.
(B) RESERVATION FOR DISTRIBUTION TO 
INDIAN TRIBES.—Section 403(a)(4) of the So-
cial Security Act (42 U.S.C. 603(a)(4)) is 
amended—
(i) in subparagraph (A), by striking 
‘‘The’’ and inserting ‘‘Subject to subpara-
graph (G), the’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(G) RESERVATION OF FUNDS FOR DIS-
TRIBUTION TO INDIAN TRIBES.—
‘‘(i) IN
GENERAL.—Of the amount 
available for grants under this paragraph 
for a bonus year, the Secretary shall re-
serve an amount equal to 3 percent of such 
amount to make grants pursuant to this 
subparagraph to each Indian tribe with an 
approved tribal family assistance plan that 
is a high performing Indian tribe for that 
bonus year. 
‘‘(ii) CRITERIA
FOR
DETERMINING 
TRIBAL PERFORMANCE.—
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), the Secretary, in con-
sultation with Indian tribes with ap-
(ii) in paragraph (3)(C)(ii), by strik-
ing ‘‘1997 through 2002’’ and inserting 
‘‘2004 through 2008’’. 
(B) RESERVATION OF FUNDS FOR TRIBAL 
PROGRAMS.—Section 403(b)(3) of the Social 
Security Act (42 U.S.C. 603(b)(3)) is amended 
by adding at the end the following: 
‘‘(D) PAYMENTS TO INDIAN TRIBES.—
‘‘(i) IN
GENERAL.—Of the total 
amount appropriated pursuant to para-
graph (2), $50,000,000 of such amount 
shall be reserved for making payments to 
Indian tribes with approved tribal family 
assistance plans that are operating in situ-
ations of increased economic hardship. 
‘‘(ii) DETERMINATION
OF
CRITERIA 
FOR TRIBAL ACCESS.—
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), the Secretary, in con-
sultation with Indian tribes with ap-
proved tribal family assistance plans, 
shall determine the criteria for access 
by Indian tribes to the amount re-
served under clause (i).
‘‘(II) INCLUSION
OF
CERTAIN 
FACTORS.—Such criteria shall include 
factors related to increases in unem-
ployment, loss of employers, and loss 
of qualified State expenditures (as de-
fined in section 409(a)(7)(B)(i)) in 
support of tribal family assistance 
plans. 
‘‘(iii) 
APPLICATION
OF
REQUIRE-
MENTS FOR PAYMENTS TO STATES.—The 
Secretary, in consultation with Indian 
tribes with approved tribal family assist-
ance plans located throughout the United 
States, shall determine the extent to which 
requirements of States for payments from 
the Fund shall apply to Indian tribes re-
ceiving payments under this subpara-
graph.’’. 
(3) CLARIFICATION OF AUTHORITY OF STATES 
AND INDIAN TRIBES TO USE TANF FUNDS CARRIED 
OVER FROM PRIOR YEARS TO PROVIDE TANF BENE-
FITS AND SERVICES.—Section 404(e) of the Social 
Security Act (42 U.S.C. 604(e)) is amended—
(A) in the subsection heading, by striking 
‘‘Assistance’’ and inserting ‘‘Benefits or Serv-
ices’’; and 
(B) by striking ‘‘assistance’’ and inserting 
‘‘any benefit or service that may be provided’’. 
SEC. 4. ECONOMIC DEVELOPMENT. 
(a) TEMPORARY EXPANSION OF AUTHORITY FOR IN-
DIAN TRIBES TO ISSUE TAX-EXEMPT PRIVATE ACTIVITY 
BONDS.—
(1) IN GENERAL.—Section 7871(c) of the Inter-
nal Revenue Code of 1986 (relating to additional re-
quirements for tax-exempt bonds) is amended by 
adding at the end the following new paragraph: 
‘‘(4) EXCEPTION FOR QUALIFIED INDIAN PRI-
VATE ACTIVITY BONDS.—
‘‘(A) IN
GENERAL.—In the case of any 
qualified Indian private activity bond—
‘‘(i) paragraph (2) shall not apply, 
‘‘(ii) such bond shall be treated as a 
qualified bond under section 141(e), and 
‘‘(iii) section 146 shall not apply. 
‘‘(B) QUALIFIED INDIAN PRIVATE ACTIV-
ITY
BOND.—For purposes of this paragraph, 
the term ‘qualified Indian private activity bond’ 
means any bond which—
‘‘(i) is issued by a qualified Indian 
tribal government—
‘‘(I) as part of an issue 95 per-
cent or more of the net proceeds of 
which are to be used to provide quali-
fied residential rental projects (as de-
fined in section 142(d), except that 
for purposes of such section, statewide 
median gross income shall be used to 
determine tenant income), 
‘‘(II) as part of a qualified mort-
gage issue (as defined in section 
143(a)(2)), 
‘‘(III) as part of an issue 95 per-
cent or more of the net proceeds of 
which are to be used to provide any 
facility 
described 
in 
section 
1394(b)(1) for any business that 
would qualify as an enterprise zone 
business if the Indian reservation (as 
defined in section 168(j)(6)) over 
which the qualified Indian tribal gov-
ernment exercises general govern-
mental authority were treated as an 
empowerment zone, or
‘‘(IV) as part of an issue to be 
used for more than 1 of the purposes 
described in the preceding subclauses, 
and 
‘‘(ii) meets the requirements of sub-
paragraphs (D) and (E). 
‘‘(C) QUALIFIED INDIAN TRIBAL GOVERN-
MENT.—For purposes of this paragraph, the 
term ‘qualified Indian tribal government’ means 
an Indian tribal government which exercises 
general governmental authority over an Indian 
reservation (as so defined) with a joblessness 
rate among members of the tribe of at least 20 
percent for the most recent calendar year pre-
ceding the issuance of a bond under this section 
(as determined under the report for such year 
published by the Bureau of Indian Affairs 
under section 17(a) of the Indian Employment, 
Training and Related Services Demonstration 
Act of 1992 (25 U.S.C. 3416(a))). 
‘‘(D) DESIGNATION
REQUIREMENTS.—A 
bond meets the requirements of this subpara-
graph if it is issued as part of an issue des-
ignated as a qualified Indian private activity 
bond for a purpose described in subclause (I),
(II), or (III) of subparagraph (B)(i) by the 
qualified Indian tribal government. 
‘‘(E) VOLUME
REQUIREMENTS.—A bond 
issued as part of an issue meets the require-
ments of this subparagraph if such bond is 
issued after December 31, 2003, and before 
January 1, 2009, and the aggregate face 
amount of the bonds issued pursuant to such 
issue, when added to the aggregate face amount 
of qualified Indian private activity bonds pre-
viously issued by such qualified Indian tribal 
government, does not exceed $10,000,000 (ex-
cluding bonds issued under paragraph (3)). 
‘‘(F) APPLICATION OF SECTION 42 TO RES-
IDENTIAL
RENTAL
PROJECTS
FINANCED
BY 
BONDS UNDER THIS PARAGRAPH.—In the case 
of bonds described in subparagraph (B)(i)(I), 
issuance under the requirements of subpara-
graph (E) shall be treated as issuance under 
the requirements of section 146 for purposes of 
determining the application of section 42 to 
projects financed by the net proceeds of such 
bonds. 
‘‘(G) SPECIAL
RULE
FOR
DETERMINING 
ENTERPRISE ZONE BUSINESS.—For purposes of
subparagraph (B)(i)(III), an enterprise zone 
business shall not include any facility a prin-
cipal business of which is the sale of tobacco 
products or highway motor fuels. 
‘‘(H) BOND INTEREST NOT AN AMT PREF-
ERENCE
ITEM.—For 
purposes 
of 
section 
57(a)(5), a bond designated under subpara-
graph (D) as a qualified Indian private activity 
bond shall not be treated as a specified private 
activity bond. 
‘‘(I) REPORT.—The Secretary shall com-
pile necessary data from reports relating to the 
issuance of bonds under this paragraph and 
shall report to Congress not later than Sep-
tember 30 of any year following the calendar 
year in which Indian tribal governments issued 
bonds under this paragraph and the activities 
for which such bonds were issued.’’. 
(2) CONFORMING AMENDMENTS.—
(A) Section 7871(c)(2) of the Internal 
Revenue Code of 1986 is amended by striking 
‘‘paragraph (3)’’ and inserting ‘‘paragraphs (3) 
and (4)’’. 
(B) Section 7871 of such Code is amend-
ed—
(i) by striking clause (iii) of sub-
section (c)(3)(E), and 
(ii) by adding at the end the following 
new subsection: 
‘‘(f) NET PROCEEDS.—For purposes of this section, 
the term ‘net proceeds’ has the meaning given such term 
by section 150(a)(3).’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to bonds issued after 
December 31, 2003. 
(b) TRIBAL DEVELOPMENT GRANTS.—
(1) AUTHORITY TO AWARD GRANTS.—
(A) 
IN
GENERAL.—The 
Secretary 
of 
Health and Human Services (in this subsection 
referred to as the ‘‘Secretary’’), through the 
Commissioner of the Administration for Native 
Americans, shall award grants to Indian tribes, 
tribal organizations, and nonprofit organiza-
tions to enable such tribes and organizations to 
provide technical assistance to Indian tribes and 
tribal organizations in any or all of the fol-
lowing areas: 
(i) The development and improvement 
of uniform commercial codes.
(ii) The creation or expansion of small 
business or micro-enterprise programs. 
(iii) The development and improve-
ment of tort liability codes. 
(iv) The creation or expansion of trib-
al marketing efforts. 
(v) The creation or expansion of for-
profit collaborative business networks. 
(vi) The development of innovative 
uses of telecommunications to assist with 
distance learning or telecommuting. 
(B) REQUIREMENTS.—In awarding grants 
under this subsection the Secretary shall—
(i) give priority to awarding grants to 
Indian tribes; and 
(ii) consult with other Federal agen-
cies with expertise in the areas described 
in subparagraph (A). 
(C) APPLICATION.—An Indian tribe, tribal 
organization, or nonprofit organization desiring 
a grant under this subsection shall submit an 
application to the Secretary at such time, in 
such manner, and containing such information 
as the Secretary may require.
(2) APPROPRIATION.—Out of any money in the 
Treasury of the United States not otherwise appro-
priated, there are appropriated $50,000,000 for the 
period of fiscal years 2004 through 2008 to make 
the grants authorized under this subsection. 
(c) 
JOB
ACCESS
AND
REVERSE
COMMUTE 
GRANTS.—Section 3037 of the Transportation Equity Act 
for the 21st Century (49 U.S.C. 5309 note) is amended—
(1) in subsection (b)—
(A) in paragraph (4)—
(i) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (B), by striking 
the period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) an Indian tribe or a tribal organiza-
tion (as defined in section 4 of the Indian Self-
Determination and Education Assistance Act 
(25 U.S.C. 450b)).’’; and 
(B) in paragraph (5), by inserting ‘‘or trib-
al’’ after ‘‘State’’; 
(2) in subsection (c), by adding at the end the 
following:
‘‘(3) GRANTS TO INDIAN TRIBES AND TRIBAL 
ORGANIZATIONS.—The Secretary—
‘‘(A) may modify the requirements applica-
ble to grants made under this section in the 
case of a grant made to a qualified entity de-
scribed in subsection (b)(4)(C); and 
‘‘(B) shall, with respect to the nongovern-
mental share of the total cost of an eligible 
project, permit such share to be derived from 
Federal funds (other than funds provided under 
this section) or in-kind resources, fairly valued, 
including facilities, equipment, or services.’’; 
(3) in subsection (f), by striking ‘‘In awarding’’ 
and inserting ‘‘Subject to subsection (c)(3), in 
awarding’’; and 
(4) in subsection (l)—
(A) in the matter preceding subparagraph 
(A) of paragraph (3), by inserting ‘‘(after the 
application of paragraph (4))’’ after ‘‘fiscal 
year’’; and 
(B) by adding at the end the following: 
‘‘(4) SET-ASIDE
FOR
GRANTS
TO
INDIAN 
TRIBES
AND
TRIBAL
ORGANIZATIONS.—Of the 
amounts made available by or appropriated under 
paragraph (1) to carry out this section for a fiscal
year, not less than 3 percent of such amounts shall 
be used to make grants to qualified entities de-
scribed in subsection (b)(4)(C).’’. 
(d) GRANTS TO IMPROVE ACCESS TO TRANSPOR-
TATION.—Section 412(a) of the Social Security Act (42 
U.S.C. 612(a)), as amended by section 5(a), is amended 
by adding at the end the following: 
‘‘(5) GRANTS TO IMPROVE ACCESS TO TRANS-
PORTATION.—
‘‘(A) PURPOSES.—The purposes of this 
paragraph are to—
‘‘(i) assist Indian families with chil-
dren obtain dependable, affordable auto-
mobiles to improve their employment op-
portunities and access to training; and 
‘‘(ii) provide incentives to Indian 
tribes, tribal organizations, States, local 
governments, and nonprofit entities to de-
velop and administer programs that pro-
vide assistance with automobile ownership 
for Indian families with children. 
‘‘(B) DEFINITIONS.—In this paragraph: 
‘‘(i) LOCALITY.—The term ‘locality’ 
means a municipality that does not admin-
ister a State program funded under this 
part. 
‘‘(ii) INDIAN
FAMILY
WITH
CHIL-
DREN.—The term ‘Indian family with chil-
dren’ means a household that is eligible for 
benefits or services funded under a tribal 
family assistance plan, the State program 
funded under this part, or under a pro-
gram funded with qualified State expendi-
tures 
(as 
defined 
in 
section 
409(a)(7)(B)(i)). 
‘‘(iii) NONPROFIT ENTITY.—The term 
‘nonprofit entity’ means a school, local 
agency, organization, or institution owned 
and operated by 1 or more nonprofit cor-
porations or associations, no part of the 
net earnings of which inures, or may law-
fully inure, to the benefit of any private 
shareholder or individual. 
‘‘(C) AUTHORITY TO AWARD GRANTS.—
‘‘(i) IN
GENERAL.—The Secretary 
may award grants to Indian tribes, tribal 
organizations, States, counties, localities, 
and nonprofit entities to promote improv-
ing access to dependable, affordable auto-
mobiles by Indian families with children. 
‘‘(ii) REQUIREMENTS.—
‘‘(I) 
PRIORITY
FOR
INDIAN 
TRIBES.—In awarding grants under 
this paragraph, the Secretary shall 
give priority to awarding grants to In-
dian tribes. 
‘‘(II) CONSULTATION.—The Sec-
retary shall consult with Indian tribes 
regarding the establishment of criteria 
for giving priority to Indian tribes 
under subclause (I) and the grant ap-
proval criteria under subparagraph 
(D). 
‘‘(D) GRANT
APPROVAL
CRITERIA.—The 
Secretary shall establish criteria for approval of 
an application for a grant under this paragraph 
that include consideration of—
‘‘(i) the extent to which the proposal, 
if funded, is likely to improve access to 
training and employment opportunities and 
child care services by Indian families with 
children by means of car ownership;
‘‘(ii) the level of innovation in the ap-
plicant’s grant proposal; and 
‘‘(iii) any partnerships between the 
public and private sector in the applicant’s 
grant proposal. 
‘‘(E) USE OF FUNDS.—
‘‘(i) IN GENERAL.—A grant awarded 
under this paragraph shall be used to ad-
minister programs that assist Indian fami-
lies with children with dependable auto-
mobile ownership, and maintenance of, or 
insurance for, the purchased automobile. 
‘‘(ii) SUPPLEMENT NOT SUPPLANT.—
Funds provided to an Indian tribe, tribal 
organization, State, county, locality, or 
nonprofit entity under a grant awarded 
under this paragraph shall be used to sup-
plement and not supplant other tribal, 
State, county, or local public funds ex-
pended for car ownership programs. 
‘‘(F) APPLICATION.—Each applicant desir-
ing a grant under this paragraph shall submit 
an application to the Secretary at such time, in 
such manner, and accompanied by such infor-
mation as the Secretary may reasonably re-
quire. 
‘‘(G) REVERSION OF FUNDS.—Any funds 
not expended by a grantee within 3 years after 
the date the grant is awarded under this para-
graph shall be available for redistribution 
among other grantees in such manner and 
amount as the Secretary may determine, unless 
the Secretary extends by regulation the time pe-
riod to expend such funds. 
‘‘(H) LIMITATION
ON
ADMINISTRATIVE 
COSTS OF THE SECRETARY.—Not more than an 
amount equal to 5 percent of the funds appro-
priated to make grants under this paragraph 
for a fiscal year shall be expended for adminis-
trative costs of the Secretary in carrying out 
this paragraph. 
‘‘(I) EVALUATION.—The Secretary shall, 
by grant, contract, or interagency agreement, 
conduct an evaluation of the programs adminis-
tered with grants awarded under this para-
graph. 
‘‘(J) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated 
to the Secretary to make grants under this
paragraph, $10,000,000 for each of fiscal years 
2004 through 2008.’’. 
SEC. 5. TRIBAL JOB TRAINING PROGRAMS. 
(a) TRIBAL EMPLOYMENT SERVICES PROGRAMS.—
(1) IN GENERAL.—Section 412(a) of the Social 
Security Act (42 U.S.C. 612(a)), as amended by sec-
tion 3, is amended by adding at the end the fol-
lowing: 
‘‘(4) GRANTS FOR TRIBAL EMPLOYMENT SERV-
ICES PROGRAMS.—
‘‘(A) PURPOSE.—The purpose of this para-
graph is to support comprehensive services to 
enable Indian and Alaska Native individuals to 
support themselves through employment with-
out requiring cash benefits from public assist-
ance programs for themselves or their families. 
‘‘(B) STATEMENT OF POLICY.—The pro-
grams funded under grants made under this 
paragraph shall be administered in a manner 
consistent with the principles of the Indian 
Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.) and the govern-
ment-to-government relationship between the 
Federal Government and Indian tribal govern-
ments.
‘‘(C) DEFINITIONS.—In this paragraph: 
‘‘(i) 
ALASKA
NATIVE
ORGANIZA-
TION.—The term ‘Alaska Native organiza-
tion’ means an Indian tribe or tribal orga-
nization in Alaska or an Alaska Native-
controlled entity serving Alaska Natives at 
the Regional level (as Regions are defined 
for purposes of the Alaska Native Claims 
Settlement Act (43 U.S.C. 1601 et seq.)). 
‘‘(ii) DEPARTMENT.—Unless other-
wise specified, the term ‘Department’ 
means the Department of Labor. 
‘‘(iii) ELIGIBLE
BENEFICIARY.—The 
term ‘eligible beneficiary’ means—
‘‘(I) an individual who is an In-
dian or Alaska Native receiving or eli-
gible to receive cash benefits for the 
individual or the individual’s family 
under the State program funded 
under this part, a tribal family assist-
ance program under this section, or 
the General Assistance program; 
‘‘(II) an individual who is an In-
dian or Alaska Native transitioning
from receipt of cash benefits under 
any such programs to employment; 
‘‘(III) an individual who is an In-
dian or Alaska Native with a history 
of long-term dependence (as defined 
in clause (vi)) on cash benefits under 
any such programs or under the aid 
for families with dependent children 
program under this part (as in effect 
before August 22, 1996); 
‘‘(IV) an individual who is an In-
dian or Alaska Native who is a non-
custodial parent of a minor child re-
ceiving, eligible to receive, or with a 
history of receiving cash benefits 
under any such programs, or an indi-
vidual who has an obligation to pro-
vide support for such children; or 
‘‘(V) an individual who is an In-
dian or Alaska Native and is a mem-
ber of a family who is at risk of be-
coming dependent on cash benefits 
under any such programs or who has 
exhausted eligibility for such benefits
because of the application of time lim-
its on benefits. 
‘‘(iv) 
GENERAL
ASSISTANCE.—The 
term ‘General Assistance’ means the Gen-
eral Assistance program supported through 
the Bureau of Indian Affairs in the De-
partment of the Interior. 
‘‘(v) LONG-TERM DEPENDENCE.—The 
term ‘long-term dependence’ means receipt 
of cash benefits under a program referred 
to in clause (ii)(III) for at least 24 
months, which need not be consecutive. 
‘‘(vi) SECRETARY.—Unless otherwise 
specified, the term ‘Secretary’ means the 
Secretary of Labor. 
‘‘(D) AUTHORITY TO MAKE GRANTS.—
‘‘(i) DIRECT
SERVICES.—The Sec-
retary shall make grants to Indian tribes, 
tribal organizations, and Alaska Native or-
ganizations on the basis of a formula de-
termined in accordance with subparagraph 
(H)(ii) to carry out the activities described 
in subparagraph (E). 
‘‘(ii) PROGRAM
SUPPORT.—The Sec-
retary shall, through grants or contracts
with entities, or interagency agreements, 
carry out the activities described in sub-
paragraph (F). 
‘‘(iii) APPROPRIATION.—
‘‘(I) IN GENERAL.—Out of any 
money in the Treasury of the United 
States not otherwise appropriated, 
there are appropriated $37,000,000 
for each of fiscal years 2004 through 
2008 to carry out this paragraph. 
‘‘(II) RESERVATION
OF
FUNDS 
FOR
PROGRAM
SUPPORT.—The Sec-
retary may reserve an amount equal 
to not more than 1.5 percent of the 
amount appropriated under subclause 
(I) for a fiscal year to make grants or 
enter into contracts under clause (ii). 
‘‘(E) DIRECT SERVICE ACTIVITIES.—
‘‘(i) IN GENERAL.—A recipient of a 
grant made under subparagraph (D)(i) 
shall use the funds provided under the 
grant to provide any services which may be 
useful in preparing eligible beneficiaries to 
enter or reenter the workforce, to retain 
employment or to advance to positions
which may enable the eligible beneficiary 
and the beneficiary’s family to become eco-
nomically self-sufficient. 
‘‘(ii) SERVICES PERMITTED.—Services 
provided with funds made available under 
a grant made under subparagraph (D)(i) 
may include—
‘‘(I) assessment; 
‘‘(II) education; 
‘‘(III) job readiness and place-
ment; 
‘‘(IV) occupational training (in-
cluding on-the-job training); 
‘‘(V) work experience; 
‘‘(VI) wage subsidies; 
‘‘(VII) job retention; 
‘‘(VIII) job creation specifically 
for eligible beneficiaries; 
‘‘(IX) case management; 
‘‘(X) counseling; 
‘‘(XI) supportive services, includ-
ing (but not limited to) child care, 
transportation, mental health and 
substance abuse treatment and pre-
vention services important to employ-
ability; and 
‘‘(XII) counseling and other serv-
ices to promote marriage, discourage 
teen pregnancies, assist in the forma-
tion and stabilization of 2-parent fam-
ilies, and address situations involving 
domestic violence. 
‘‘(iii) RETENTION
OF
ELIGIBILITY 
FOR OTHER SERVICES.—An eligible bene-
ficiary who receives services under sub-
paragraph (D)(i) shall not be precluded 
from receiving other services from any 
State, local or tribal government agency or 
any other entity. 
‘‘(iv) DISREGARD.—Income or services 
received by an eligible beneficiary under 
this paragraph shall be disregarded for 
purposes of determining eligibility for ben-
efits under any means-tested program for 
which the eligibility requirements are es-
tablished under Federal law. 
‘‘(F) PROGRAM SUPPORT ACTIVITIES.—
‘‘(i) IN
GENERAL.—In order to im-
prove the effectiveness of services provided
by Indian tribes, tribal organizations, and 
Alaska Native organizations under grants 
made under this paragraph, the Secretary 
shall, through grants, contracts, or inter-
agency 
agreements, 
support 
activities 
that—
‘‘(I) enhance the capacity of In-
dian tribes, tribal organizations, and 
Alaska Native organizations under 
this section to deliver the services au-
thorized under subparagraph (D); and 
‘‘(II) test or demonstrate new or 
improved methods of providing such 
services. 
‘‘(ii) 
PREFERENCE.—In 
awarding 
grants or contracts under subparagraph 
(D)(ii) to carry out this subparagraph, the 
Secretary shall implement a preference pol-
icy consistent with the terms of section 
7(b) of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 
450e(b)). 
‘‘(G) ADDITIONAL REQUIREMENTS.—
‘‘(i) DIRECT SERVICE ACTIVITIES.—
‘‘(I) AUTHORITY
TO
CONSOLI-
DATE FUNDS.—An Indian tribe, tribal 
organization, or Alaska Native organi-
zation receiving a grant under sub-
paragraph (D)(i) may consolidate 
funds received under the grant with 
assistance received from other pro-
grams in accordance with the provi-
sions of the Indian Employment, 
Training and Related Services Dem-
onstration Act of 1992 (25 U.S.C. 
3401 et seq.) or the provisions of the 
Tribal Self-Governance Act of 1994 
(25 U.S.C. 458aa et seq.). 
‘‘(II) OPTION TO EXCLUDE PAR-
TICIPANTS FROM DETERMINATION OF 
WORK
PARTICIPATION
RATES.—A 
State, Indian tribe, or tribal organiza-
tion may exclude individuals partici-
pating in a direct services program 
funded under a grant made under 
subparagraph (D)(i) for a month from 
the calculation of the work participa-
tion rate for the State or tribe for 
such month.
‘‘(ii) 
APPLICABLE
RULES.—Any 
amount paid to an Indian tribe or tribal 
organization under this part that is used to 
carry out the activities described in sub-
paragraph (E) or (F) shall not be subject 
to the requirements of this part, but shall 
be subject to the requirements specified in 
the regulations required under subpara-
graph (H)(iii), and the expenditure of any 
amount so used shall not be considered to 
be an expenditure under this part. 
‘‘(iii) AVAILABILITY
OF
FUNDS.—
Funds provided to a recipient of a grant or 
contract under subparagraph (D)(ii) shall 
remain available for obligation for 2 suc-
ceeding fiscal years after the fiscal year in 
which the grant is made or the contract is 
entered into. 
‘‘(H) PROGRAM ADMINISTRATION.—
‘‘(i) DESIGNATION OF OFFICE WITH 
PRIMARY RESPONSIBILITY.—The Secretary 
shall designate a single organizational unit 
within the Department that shall have as 
its primary responsibility the administra-
tion of the activities authorized under this
paragraph and of any related Indian pro-
grams administered by the Department. 
‘‘(ii) CONSULTATION.—
‘‘(I) IN
GENERAL.—The Sec-
retary shall consult with Indian tribes 
and 
tribal 
organizations 
located 
throughout the United States and 
Alaska Native organizations on all as-
pects of the operation and administra-
tion of the activities authorized under 
this paragraph, including the promul-
gation of regulations, the design of a 
formula for the allocation of funds 
among Indian tribes, tribal organiza-
tions, and Alaska Native organiza-
tions, and the implementation of pro-
gram support activities described in 
subparagraph (F). 
‘‘(II) ADVISORY
COMMITTEE.—
The Secretary may utilize a broadly 
based advisory committee whose mem-
bers are nominated by Indian tribes, 
tribal organizations, and Alaska Na-
tive organizations as part of the con-
sultation required under subclause (I),
except that the consultation process 
shall not be limited to discussions 
with such committee. 
‘‘(iii) REGULATIONS.—The Secretary 
may issue regulations for the conduct of 
activities under this paragraph. All re-
quirements imposed by such regulations, 
including reporting requirements, shall 
take into full consideration tribal cir-
cumstances and conditions.’’. 
(2) TRANSITION
FROM
OTHER
TANF
INDIAN 
EMPLOYMENT PROGRAMS.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary of Health and Human 
Services shall provide for an orderly close-out of 
activities under the work program authorized in 
section 412(a)(2) of the Social Security Act (42 
U.S.C. 612(a)(2)) (commonly referred to as 
‘‘the Native Employment Works program’’ or 
the ‘‘NEW’’ program) as such section is in ef-
fect on September 30, 2003. 
(B) REQUIREMENT.—In closing out the ac-
tivities referred to in subparagraph (A), the 
Secretary of Health and Human Services shall 
provide that grantees under a program referred
to in that subparagraph shall be permitted to 
provide services through June 30, 2004, and 
shall be permitted to spend funds on adminis-
trative activities related to the close-out of 
grants under programs for up to 6 months 
after that date. 
(b) APPLICATION OF INDIAN EMPLOYMENT, TRAIN-
ING, AND RELATED SERVICES DEMONSTRATION ACT OF 
1992.—Section 412(a)(4) of the Social Security Act (42 
U.S.C. 612(a)), as added by subsection (a), is amended 
by adding at the end the following: 
‘‘(I) APPLICATION
OF
INDIAN
EMPLOY-
MENT, 
TRAINING, 
AND
RELATED
SERVICES 
DEMONSTRATION
ACT
OF
1992.—Notwith-
standing any other provision of law, if an In-
dian tribe elects to incorporate the services it 
provides under this paragraph into a plan under 
section 6 of the Indian Employment, Training, 
and Related Services Demonstration Act of 
1992 (25 U.S.C. 3405), the programs author-
ized to be conducted with grants made under 
this paragraph shall be—
‘‘(i) considered to be programs subject 
to section 5 of the Indian Employment,
Training, and Related Services Demonstra-
tion Act of 1992 (25 U.S.C. 3404); and 
‘‘(ii) subject to the single plan and 
single budget requirements of section 6 of 
that Act (25 U.S.C. 3405) and the single 
report format required under section 11 of 
that Act (25 U.S.C. 3410).’’. 
SEC. 6. CHILD CARE AND DEVELOPMENT BLOCK GRANT 
FUNDS FOR INDIAN TRIBES. 
(a) 
INCREASE
IN
RESERVATION.—Section 
658O(a)(2) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858m(a)(2)) is amended 
by striking ‘‘1 percent, and not more than 2 percent,’’ and 
inserting ‘‘5 percent’’. 
(b) PAYMENTS FOR THE BENEFIT OF INDIAN CHIL-
DREN.—
(1) HEALTH
AND
SAFETY
STANDARDS.—Sec-
tion 658O(c)(2) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858m(c)(2)) 
is amended by adding at the end the following: 
‘‘(D) HEALTH AND SAFETY STANDARDS.—
The applicant will establish requirements de-
signed to protect the health and safety of chil-
dren, which shall—
‘‘(i) be stated in the application; and
‘‘(ii) notwithstanding any other provi-
sion of law, including subparagraphs (F) 
and (G) of section 658E(c)(2), be the 
health and safety requirements applicable 
to child care providers that receive funds 
from the applicant to provide services 
under this subchapter.’’. 
(2) 
NEGOTIATED
RULEMAKING.—Section 
658O(c) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858m(c)) is amend-
ed—
(A) by redesignating paragraphs (4), (5), 
and (6) as paragraphs (5), (6), and (7), respec-
tively; and 
(B) by inserting after paragraph (3) the 
following: 
‘‘(4) NEGOTIATED
RULEMAKING.—In deter-
mining the base amount provided to Indian tribes 
and tribal organizations under this subsection, the 
Secretary shall conduct a negotiated rulemaking. 
The Secretary shall include in the negotiated rule-
making committee representatives of the Indian 
tribes and tribal organizations that the Secretary de-
termines to be eligible to receive grants or contracts 
under this subsection. The Secretary shall conduct
the negotiated rulemaking in accordance with sub-
chapter III of chapter 5 of title 5, United States 
Code, as in effect on November 28, 1996.’’. 
(3) CONSTRUCTION
OR
RENOVATION.—Para-
graph (7)(C) of section 658O(c) of the Child Care 
and Development Block Grant Act of 1990 (as re-
designated in paragraph (2)(A)) is amended—
(A) by striking ‘‘The’’ and inserting the 
following: 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the’’; and 
(B) by adding at the end the following: 
‘‘(ii) TEMPORARY
DECREASE.—The 
Secretary may permit an Indian tribe or 
tribal organization to use amounts pro-
vided under this subsection for construc-
tion or renovation even if such use will re-
sult in a temporary decrease described in 
clause (i), if—
‘‘(I) the Secretary determines 
that the construction or renovation 
will enable the tribe or organization to 
increase, in fiscal years subsequent to 
the year for which the determination 
under subparagraph (B) is made, the