shall apply to recipients of direct assistance benefits 
under a pilot project carried out under this section, 
subject to such changes to those requirements as the 
Secretary determines necessary. 
(2) 
REGULATIONS; 
AUDIT.—The 
Secretary 
shall— 
(A) prescribe such regulations as the Sec-
retary determines necessary and appropriate to 
ensure compliance with and State enforcement 
of the requirements described in paragraph (1); 
and 
(B) audit the program integrity measures 
described in paragraphs (3)(C) and (4)(B) of 
subsection (f) established by States. 
(i) DATA SHARING.—The Secretary shall facilitate 
data sharing, concerning data and other information relat-
ing to antipoverty programs, with Federal agencies and 
offices (other than the Administration for Children and 
Families of the Department of Health and Human Serv-
ices) as necessary to administer the pilot program carried 
out under this Act. The Secretary shall cooperate with 
each State participating in the pilot program to coordinate 
access by Federal agencies and offices to data and other 
information relating to antipoverty programs included in 
the State’s pilot project. 
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(j) EVALUATIONS.— 
(1) IN GENERAL.— 
(A) DETERMINATIONS.—Each State that 
carries out a pilot project under this Act shall 
enter into a contract for an annual inde-
pendent, third-party evaluation of the pilot 
project, for purposes of determining, for pur-
poses of this section— 
(i) per-capita direct assistance, and 
per-capita direct assistance described in 
paragraph (2)(C); and 
(ii) improvement on the upward mo-
bility measures described in paragraph (2), 
as described in paragraph (3). 
(B) QUALIFICATIONS.—The evaluator shall 
demonstrate the independence described in 
clause (i), and the substantial experience de-
scribed in clause (ii), of subsection (f)(6)(D). 
(2) UPWARD MOBILITY MEASURES.—The State 
shall require the evaluator to conduct annual evalua-
tions of the pilot project on upward mobility meas-
ures, which measure— 
(A) the Marginal Effective Tax Rates, for 
pilot project participants, of increases in earned 
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income attributable to employment through the 
pilot project; 
(B) participant employment outcomes, con-
sisting of achievement of (relative to the full fis-
cal year that precedes the date on which the 
Secretary approves the application for the pilot 
project under subsection (g) (referred to in this 
paragraph 
as 
the 
‘‘pre-implementation 
year’’))— 
(i) higher earnings of participants; 
(ii) a higher percentage of partici-
pants with employment; 
(iii) a higher percentage of partici-
pants with full-time employment; and 
(iv) a higher percentage of partici-
pants who have retained employment; 
(C) reduction (relative to the pre-imple-
mentation year) in per-capita direct assistance 
by reducing the dependence of participants on 
per-capita direct assistance through improve-
ment in employment outcomes described in sub-
paragraph (B); 
(D) elimination or reduction in (relative to 
the pre-implementation year) marriage penalties 
for participants; and 
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(E) reduction (relative to the pre-imple-
mentation year) in poverty among participants. 
(3) IMPROVEMENT.—The State shall require 
the evaluator, as part of each annual evaluation, to 
measure— 
(A) improvement (relative to the pre-imple-
mentation year) on the upward mobility meas-
ures described in paragraph (2); and 
(B) improvement on the upward mobility 
measures, relative to the benchmark goals de-
scribed under subsection (f)(2)(C). 
(4) USE OF EVALUATIONS.—The evaluator shall 
prepare and submit to the Secretary a report con-
taining the results of each annual evaluation. 
(5) COMPARISON.—The evaluator shall make 
comparisons on the upward mobility measures by 
comparing the outcomes of the entire population en-
rolled in the antipoverty programs related to a cov-
ered amount described in subsection (a)(3)(A)(i) for 
the preceding fiscal year described in subsection 
(d)(2)(A), to the outcomes for that entire population 
enrolled in those antipoverty programs (included in 
the pilot project or not so included) for the year cov-
ered by the evaluation. 
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(k) FUNDING ADJUSTMENT.—No State shall receive 
an adjustment to an Upward Mobility Grant because the 
State increased the amount of the per-capita direct assist-
ance provided, through an Upward Mobility Grant. 
SEC. 3. TRANSFERS AND SAVINGS PROVISION. 
(a) DEFINITIONS.—For purposes of this section, un-
less otherwise provided or indicated by the context— 
(1) the term ‘‘Administration’’ means the Ad-
ministration for Children and Families; 
(2) the term ‘‘covered Federal agency’’ means 
an agency, as defined in section 551(1) of title 5, 
United States Code, that carries out an antipoverty 
program; 
(3) the term ‘‘function’’ means any duty, obli-
gation, power, authority, responsibility, right, privi-
lege, activity, or program; 
(4) the term ‘‘Secretary’’ means the Secretary 
of Health and Human Services, acting through the 
Assistant Secretary for Children and Families; and 
(5) the term ‘‘transferred function’’ means a 
function (including a part of a function) transferred 
under this section. 
(b) ADMINISTRATIVE FUNDING.— 
(1) AMOUNTS TO STATES FOR ADMINISTRATIVE 
COSTS.— 
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(A) IN
GENERAL.—Notwithstanding any 
other provision of this section, for each State 
carrying out a pilot project under this Act, each 
head of a covered Federal agency shall transfer 
to the State, for a fiscal year, an amount that 
bears the same relationship to the total amount 
of funding for administrative costs of the anti-
poverty program involved for that fiscal year for 
all States as the amount of funding the State 
received for the nonadministrative costs of the 
program for the prior fiscal year bears to the 
total amount of funding that all States received 
for those costs for the prior fiscal year. 
(B) DETERMINATION.—For the purposes 
of determining, under subparagraph (A), the 
funding a State received for nonadministrative 
costs for a prior fiscal year in which there was 
a lapse in appropriations, the funding shall be 
determined as if the corresponding money was 
appropriated for the entire fiscal year. 
(2) LIMITED SCOPE PILOT PROJECTS.—For a 
State carrying out a limited scope pilot project 
under section 2(c)(2), the head of the Federal agen-
cy shall adjust the amount to be transferred under 
paragraph (1) to account for the limited scope. 
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and to establish, consolidate, alter, or discontinue 
such organizational entities in the Administration as 
may be necessary or appropriate. 
(4) TRANSFER AND ALLOCATIONS OF APPRO-
PRIATIONS AND PERSONNEL.—Except as otherwise 
provided in this Act, the personnel employed in con-
nection with, and the assets, liabilities, contracts, 
property, records, and unexpended balances of ap-
propriations, authorizations, allocations, and other 
funds employed, used, held, arising from, available 
to, or to be made available in connection with the 
transferred functions, subject to section 1531 of title 
31, United States Code, shall be transferred to the 
Administration. Unexpended funds transferred pur-
suant to this section shall be used only for the pur-
poses for which the funds were originally authorized 
and appropriated. The Director of the Office of 
Management and Budget shall provide for such fur-
ther measures and dispositions as may be necessary 
to effectuate the purposes of this Act. 
(5) RULES.—The Secretary is authorized to 
prescribe, in accordance with the provisions of chap-
ters 5 and 6 of title 5, United States Code, such 
rules and regulations as the Secretary determines 
necessary or appropriate to administer and manage 
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the functions of the Administration to carry out sec-
tion 2. 
(6) TRANSITION.—The Secretary is authorized 
to utilize— 
(A) the services of officers, employees, and 
other personnel of a covered Federal agency 
with respect to transferred functions; and 
(B) funds appropriated to such functions 
for such period of time as may reasonably be 
needed to facilitate the orderly implementation 
of this Act. 
(d) SAVINGS PROVISIONS.— 
(1) CONTINUING
EFFECT
OF
LEGAL
DOCU-
MENTS.—All orders, determinations, rules, regula-
tions, permits, agreements, grants, contracts, certifi-
cates, licenses, registrations, privileges, and other 
administrative actions— 
(A) which have been issued, made, grant-
ed, or allowed to become effective by the Presi-
dent, any covered Federal agency or official 
thereof, or by a court of competent jurisdiction, 
in the performance of transferred functions; 
and 
(B) which are in effect on the date of en-
actment of this Act, or were final before that 
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date and are to become effective on or after 
that date, 
shall continue in effect according to their terms until 
modified, terminated, superseded, set aside, or re-
voked in accordance with law by the President, the 
Secretary or other authorized official, a court of 
competent jurisdiction, or by operation of law. 
(2) PROCEEDINGS NOT AFFECTED.—The provi-
sions of this Act shall not affect any proceedings, in-
cluding notices of proposed rulemaking, or any ap-
plication for any license, permit, certificate, or finan-
cial assistance pending before any covered Federal 
agency on the date of enactment of this Act, with re-
spect to transferred functions but such proceedings 
and applications shall be continued. Orders shall be 
issued in such proceedings, appeals shall be taken 
therefrom, and payments shall be made pursuant to 
such orders, as if this Act had not been enacted, and 
orders issued in any such proceedings shall continue 
in effect until modified, terminated, superseded, or 
revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Noth-
ing in this paragraph shall be deemed to prohibit the 
discontinuance or modification of any such pro-
ceeding under the same terms and conditions and to 
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the same extent that such proceeding could have 
been discontinued or modified if this Act had not 
been enacted. 
(3) SUITS NOT AFFECTED.—The provisions of 
this Act shall not affect suits commenced before the 
date of enactment of this Act, and in all such suits, 
proceedings shall be had, appeals taken, and judg-
ments rendered in the same manner and with the 
same effect as if this Act had not been enacted. 
(4) NONABATEMENT OF ACTIONS.—No suit, ac-
tion, or other proceeding commenced by or against 
a covered Federal agency, or by or against any indi-
vidual in the official capacity of such individual as 
an officer of a covered Federal agency, shall abate 
by reason of the enactment of this Act. 
(5) ADMINISTRATIVE
ACTIONS
RELATING
TO 
PROMULGATION OF REGULATIONS.—Any administra-
tive action relating to the preparation or promulga-
tion of a regulation by a covered Federal agency re-
lating to a transferred function may be continued by 
the Administration with the same effect as if this 
Act had not been enacted. 
(6) REFERENCES.—Reference in any other 
Federal law, Executive order, rule, regulation, or 
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delegation of authority, or any document of or relat-
ing to— 
(A) the head of a covered Federal agency 
with regard to a transferred function, shall be 
deemed to refer to the Secretary; and 
(B) a covered Federal agency with regard 
to a transferred function, shall be deemed to 
refer to the Administration. 
Æ 
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