687
SEC. 6003. INCREASE IN ADMINISTRATIVE REIMBURSE-
MENT RATES. 
Section 17(f)(3) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(f)(3)) is amended by 
striking subparagraph (B) and inserting the following: 
‘‘(B) REIMBURSEMENT FOR ADMINISTRA-
TIVE EXPENSES.—
‘‘(i) IN GENERAL.—Family or group 
day care home sponsoring organizations 
shall also receive reimbursement for ad-
ministrative expenses in amounts not ex-
ceeding the maximum allowable levels pre-
scribed by the Secretary. 
‘‘(ii) ADJUSTMENT.—The maximum 
allowable levels prescribed under clause (i) 
shall be—
‘‘(I) adjusted July 1 of each year 
to reflect changes for the 12-month 
period ending in the preceding June, 
in the Consumer Price Index for All 
Urban Consumers published by the 
Bureau of Labor Statistics of the De-
partment of Labor, rounded to the 
nearest lower dollar increment; and 
‘‘(II) in addition to the adjust-
ments required under subclause (I),
688
increased by $2.00 for each level de-
scribed in clause (i).’’. 
SEC. 6004. PROGRAM FOR AT-RISK SCHOOL CHILDREN. 
Section 17(r) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766(r)) is amended—
(1) in paragraph (1)(B)—
(A) by inserting ‘‘(i)’’ after ‘‘(B)’’; 
(B) by striking ‘‘in a geographical area’’ 
and all that follows through the period and in-
serting the following: ‘‘in a geographical area—
‘‘(I) that is served by a school in 
which at least 50 percent of the children 
are eligible for free or reduced price school 
meals under this Act or the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et seq.); 
or 
‘‘(II) in which poor economic condi-
tions exist, as determined by the Secretary 
based on—
‘‘(aa) information provided from 
the local department of welfare, zon-
ing commission, or census tracts; or 
‘‘(bb) information from other ap-
propriate sources; or’’; and 
(C) by adding at the end the following:
689
‘‘(ii) is enrolled in a program authorized 
under this subsection operated at a site not de-
scribed in clause (i).’’; 
(2) in paragraph (4), by striking subparagraphs 
(B) and (C) and inserting the following: 
‘‘(B) RATES.—
‘‘(i) MEALS.—A meal shall be reim-
bursed under this subsection—
‘‘(I) for children participating in 
a program at a site described in para-
graph (1)(B)(i), at the rate estab-
lished for free meals under subsection 
(c); and 
‘‘(II) for children enrolled in a 
program under paragraph 1(B)(ii), at 
the applicable rate for meals estab-
lished under subsection (c). 
‘‘(ii) SUPPLEMENTS.—A supplement 
shall be reimbursed under this sub-
section—
‘‘(I) for children participating in 
a program at a site described in para-
graph (1)(B)(i), at the rate estab-
lished for a free supplement under 
subsection (c)(3); and
690
‘‘(II) for children enrolled in a 
program under paragraph 1(B)(ii), at 
the applicable rate for supplements es-
tablished under subsection (c)(3). 
‘‘(C) NO CHARGE.—In the case of at-risk 
school child participating in a program at a site 
described in paragraph (1)(B)(i), a meal or 
supplement provided under this subsection to 
the child shall be served without charge.’’; and 
(3) by striking paragraph (5). 
Subtitle B—Food Stamp Program 
SEC. 6101. RESTORATION OF FOOD STAMP BENEFITS FOR 
QUALIFIED ALIENS. 
(a) LIMITED ELIGIBILITY
OF QUALIFIED ALIENS 
FOR CERTAIN FEDERAL PROGRAMS.—
(1) IN GENERAL.—Section 402(a) of the Per-
sonal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1612(a)) is 
amended—
(A) in paragraph (2)—
(i) in subparagraph (A), by striking 
‘‘Federal programs’’ and inserting ‘‘Fed-
eral program’’; 
(ii) in subparagraph (D)—
(I) by striking clause (ii); and
691
(II) in clause (i)—
(aa) by striking ‘‘(i) SSI.—
’’ and all that follows through 
‘‘paragraph (3)(A)’’ and inserting 
the following: 
‘‘(i) IN
GENERAL.—With respect to 
the specified Federal program described in 
paragraph (3)’’; 
(bb) by redesignating sub-
clauses (II) through (IV) as 
clauses (ii) through (iv) and in-
denting appropriately; 
(cc) by striking ‘‘subclause 
(I)’’ each place it appears and in-
serting ‘‘clause (i)’’; and 
(dd) in clause (iv) (as redes-
ignated by item (bb)), by striking 
‘‘this clause’’ and inserting ‘‘this 
subparagraph’’; 
(iii) in subparagraph (E), by striking 
‘‘paragraph (3)(A) (relating to the supple-
mental security income program)’’ and in-
serting ‘‘paragraph (3)’’; 
(iv) in subparagraph (F);
692
(I) by striking ‘‘Federal pro-
grams’’ and inserting ‘‘Federal pro-
gram’’; and 
(II) by striking clauses (i) and 
(ii) and inserting the following: 
‘‘(i) was lawfully residing in the 
United States on August 22, 1996; and 
‘‘(ii) is blind or disabled (as defined in 
paragraph (2) or (3) of section 1614(a) of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
1382c(a))).’’; 
(v) in subparagraph (G), by striking 
‘‘Federal programs’’ and inserting ‘‘Fed-
eral program’’; 
(vi) in subparagraph (H), by striking 
‘‘paragraph (3)(A) (relating to the supple-
mental security income program)’’ and in-
serting ‘‘paragraph (3)’’; 
(vii) by striking subparagraphs (I), 
(J), and (K); and 
(viii) by striking subparagraph (L); 
and 
(B) in paragraph (3)—
(i) by striking ‘‘means any’’ and all 
that follows through ‘‘The supplemental’’
693
and inserting ‘‘means the supplemental’’; 
and 
(ii) by striking subparagraph (B). 
(2) CONFORMING AMENDMENTS.—
(A) Section 402(b)(2)(F) of the Personal 
Responsibility and Work Opportunity Reconcili-
ation Act of 1996 (8 U.S.C. 1612(b)(2)(F)) is 
amended by striking ‘‘subsection (a)(3)(A)’’ and 
inserting ‘‘subsection (a)(3)’’. 
(B) Section 421(d) of the Personal Re-
sponsibility and Work Opportunity Reconcili-
ation Act of 1996 (8 U.S.C. 1631(d)) is amend-
ed by striking paragraph (3). 
(b) FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED 
ALIENS
FOR FEDERAL MEANS-TESTED PUBLIC BEN-
EFIT.—Section 403 of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
1613) is amended—
(1) in subsection (c)(2), by striking subpara-
graph (L) and inserting the following: 
‘‘(L) Assistance or benefits under the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et seq.).’’; 
and 
(2) in subsection (d)—
694
(A) by striking ‘‘not apply’’ and all that 
follows through ‘‘(1) an individual’’ and insert-
ing ‘‘not apply to an individual’’; and 
(B) by striking ‘‘; or’’ and all that follows 
through ‘‘402(a)(3)(B)’’. 
(c) AUTHORITY FOR STATES TO PROVIDE FOR AT-
TRIBUTION OF SPONSOR’S INCOME AND RESOURCES TO 
THE QUALIFIED ALIEN WITH RESPECT TO STATE PRO-
GRAMS.—Section 422(b) of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1632(b)) is amended by adding at the end the fol-
lowing: 
‘‘(8) Programs comparable to assistance or ben-
efits under the Food Stamp Act of 1977 (7 U.S.C. 
2011 et seq.).’’. 
(d) REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF 
SUPPORT.—Section 423(d) of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1183a note; Public Law 104–193) is amended by 
adding at the end the following: 
‘‘(12) Benefits under the Food Stamp Act of 
1977 (7 U.S.C. 2011 et seq.), if a sponsor is unable 
to make the reimbursement because the sponsor ex-
periences hardship (including bankruptcy, disability, 
and indigence) or if the sponsor experiences severe
695
circumstances beyond the control of the sponsor, as 
determined by the Secretary of Agriculture.’’. 
(e) DERIVATIVE ELIGIBILITY FOR BENEFITS.—Sec-
tion 436 of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996 (8 U.S.C. 1646) is re-
pealed. 
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this section and the amendments made by 
this section take effect on the date of enactment of 
this Act. 
(2) 
EXCEPTIONS.—The 
amendments 
made 
by—
(A) subsection (a)(1)(A)(viii) take effect on 
April 1, 2003; 
(B) subsection (a)(2)(B) take effect on Oc-
tober 1, 2003; and 
(C) subsection (b) take effect on April 1, 
2004. 
SEC. 6102. CONFORMING FOOD STAMP AND MEDICAID IN-
COME 
DEFINITIONS; 
SIMPLIFIED 
INCOME 
CALCULATIONS. 
Section 5(d) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(d)) is amended—
696
(1) in paragraphs (16) and (17), by striking 
‘‘at the option of the State agency,’’ each place it 
appears; and 
(2) in paragraph (18), by striking ‘‘regular pay-
ments from a government source’’ and all that fol-
lows through ‘‘make the payments,’’. 
SEC. 6103. PREVENTION OF HUNGER AMONG FAMILIES 
WITH CHILDREN. 
(a) STANDARD DEDUCTION.—Section 5(e)(1) of the 
Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) is amend-
ed—
(1) by striking ‘‘8.31 percent’’ each place it ap-
pears and inserting ‘‘the applicable percentage es-
tablished under subparagraph (C)’’; and 
(2) by adding at the end the following: 
‘‘(C) APPLICABLE PERCENTAGE.—The ap-
plicable percentage referred to in subpara-
graphs (A) and (B) shall be—
‘‘(i) for fiscal year 2003, 8.5 percent; 
‘‘(ii) for fiscal year 2004, 9 percent; 
‘‘(iii) for fiscal year 2005, 9.5 percent; 
and 
‘‘(iv) for fiscal year 2006 and each 
subsequent fiscal year, 10 percent.’’.
697
(b) APPLICATION DATE.—The amendments made by 
this section shall apply on the later of— 
(1) July 1, 2004; or 
(2) at the option of a State agency of a State 
(as those terms are defined in section 3 of the Food 
Stamp Act of 1977 (7 U.S.C. 2012)), October 1, 
2004. 
SEC. 6104. ENCOURAGEMENT OF COLLECTION OF CHILD 
SUPPORT. 
(a) IN GENERAL.—Section 5(e)(2) of the Food 
Stamp Act of 1977 (7 U.S.C. 2014(e)(2)) is amended—
(1) by inserting ‘‘AND CHILD SUPPORT’’ after 
‘‘INCOME’’; 
(2) in subparagraph (A)—
(A) by striking ‘‘DEFINITION OF’’ and all 
that follows through ‘‘not include’’ and insert-
ing the following: ‘‘LIMITATION
ON
DEDUC-
TION.—A deduction under this paragraph shall 
not apply to’’; 
(B) in clause (i), by striking ‘‘or’’; 
(C) in clause (ii), by striking the period at 
the end and inserting ‘‘; or’’; and 
(D) by adding at the end the following: 
‘‘(iii) child support received to the ex-
tent of any reduction in public assistance
698
to the household as a result of receiving 
the support.’’; and 
(3) in subparagraph (B)—
(A) by striking ‘‘with earned income’’; and 
(B) by striking ‘‘to compensate’’ and all 
that follows through the period and inserting 
the following: ‘‘and child support received from 
an identified or putative parent of a child in the 
household if that parent is not a household 
member.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section take effect on—
(1) July 1, 2004; or 
(2) at the option of a State agency of a State 
(as those terms are defined in section 3 of the Food 
Stamp Act of 1977 (7 U.S.C. 2012)), October 1, 
2004. 
SEC. 6105. ELIMINATION OF EXCESS SHELTER EXPENSE DE-
DUCTION CAP FOR FAMILIES WITH HIGH 
SHELTER COSTS. 
Section 5(e)(6) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(e)(6)) is amended—
(1) by striking subparagraph (B); and 
(2) by redesignating subparagraphs (C) and 
(D) as subparagraphs (B) and (C), respectively.
699
SEC. 6106. PERIODIC REDETERMINATION OF ELIGIBILITY. 
(a) IN GENERAL.—Section 11(e) of the Food Stamp 
Act of 1977 (7 U.S.C. 2020(e)) is amended by striking 
paragraph (4) and inserting the following: 
‘‘(4)(A) that the State agency shall periodically 
require the household to cooperate in a redetermina-
tion of eligibility under procedures consistent with 
paragraph (2); and 
‘‘(B) that, in carrying out subparagraph (A), a 
State agency—
‘‘(i) shall require a redetermination of eli-
gibility at least once—
‘‘(I) every 12 months; or 
‘‘(II) every 24 months, if—
‘‘(aa) the State agency has con-
tact with the household at least once 
every 12 months; and 
‘‘(bb) all adult household mem-
bers are elderly or disabled; 
‘‘(ii) except as provided in clause (iii), shall 
continue to provide benefits to households dur-
ing the redetermination process; and 
‘‘(iii) shall not provide further allotments 
to any household that the State agency deter-
mines has refused to cooperate in the redeter-
mination of eligibility;’’.
700
(b) CONFORMING AMENDMENTS—
(1) Section 3 of the Food Stamp Act of 1977 
(7 U.S.C. 2012) is amended by striking subsection 
(c). 
(2) Section 5 of the Food Stamp Act of 1977 
(7 U.S.C. 2014) is amended—
(A) in subsection (d)(2), by striking ‘‘in 
the certification period’’; and 
(B) in subsection (e)—
(i) in paragraph (5)(B)(ii)(III), by 
striking ‘‘has been anticipated for the cer-
tification period’’ and inserting ‘‘was an-
ticipated when the household applied for 
benefits or at the most recent redetermina-
tion of eligibility’’; and 
(ii) in paragraph (6)(B)(iii)(II) (as re-
designated by section 6105(2)), by striking 
‘‘the end of a certification period’’ and in-
serting ‘‘each redetermination of eligi-
bility’’. 
(3) Section 6(c)(1)(C)(iv) of the Food Stamp 
Act of 1977 (7 U.S.C. 2015(c)(1)(C)(iv)) is amend-
ed by striking ‘‘certification period’’ each place it ap-
pears and inserting ‘‘interval between required rede-
terminations of eligibility’’.
701
(4) Section 8(c) of the Food Stamp Act of 1977 
(7 U.S.C. 2017) is amended—
(A) in the second sentence of paragraph 
(1), by striking ‘‘within a certification period’’; 
and 
(B) in paragraph (2)(B), by striking ‘‘expi-
ration of’’ and all that follows through ‘‘certifi-
cation period,’’ and inserting ‘‘termination of 
benefits to a household,’’. 
(5) Section 11(e) of the Food Stamp Act of 
1977 (7 U.S.C. 2020(e) is amended—
(A) in paragraph (10)—
(i) by striking ‘‘within the household’s 
certification period’’; and 
(ii) by striking ‘‘until such time’’ and 
all that follows through ‘‘occurs earlier’’; 
and 
(B) in paragraph (16), by striking ‘‘recer-
tification’’ and inserting ‘‘redetermination of 
the eligibility of’’. 
SEC. 6107. TRANSITIONAL BENEFITS OPTION. 
Section 11(s) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(s)) is amended—
(1) in paragraph (2), by striking ‘‘5 months’’ 
and inserting ‘‘6 months’’;
702
(2) in paragraph (3), by striking subparagraph 
(B) and inserting the following: 
‘‘(B) any changes in circumstances that 
may result in an increase in the food stamp al-
lotment of the household and that the house-
hold elects to report (as verified in accordance 
with standards established by the Secretary).’’; 
and 
(3) by striking paragraph (5) and inserting the 
following: 
‘‘(5) LIMITATION.—A household shall not be el-
igible for transitional benefits under this subsection 
if the household loses eligibility under section 6.’’. 
SEC. 6108. IMPROVING STATE INCENTIVES TO SERVE 
WORKING FAMILIES. 
(a) TARGETED QUALITY CONTROL SYSTEM.—Sec-
tion 16(c) of the Food Stamp Act of 1977 (7 U.S.C. 
2025(c)) is amended—
(1) in paragraph (2)(A), by inserting before the 
semicolon the following: ‘‘, as adjusted downward to 
eliminate any increases that may result from the 
State agency serving a higher percentage of house-
holds—
‘‘(i) with earned income than—
703
‘‘(I) the State agency served in fiscal 
year 1992; or 
‘‘(II) the national average for the cur-
rent year; and 
‘‘(ii) containing 1 or more members who 
are not United States citizens than—
‘‘(I) the State agency served in fiscal 
year 1998; or 
‘‘(II) the national average for the cur-
rent year’’; 
(2) in paragraph (4), by striking the first sen-
tence and inserting the following: ‘‘The Secretary 
may require a State agency to report any factors 
that the Secretary considers necessary to determine 
a State agency’s payment error rate, enhanced ad-
ministrative funding, claim for payment error, or 
performance under the measures under subsection 
(l).’’; and 
(3) in paragraph (5), by striking the first sen-
tence and inserting the following: ‘‘To facilitate the 
implementation of this subsection each State agency 
shall expeditiously submit to the Secretary data re-
garding its operations in each fiscal year sufficient 
for the Secretary to comply with subsection (l) and 
to establish the payment error rate for the State
704
agency for such fiscal year and determine the 
amount of either incentive payments under para-
graph (1)(A) or claims under subparagraph (C) or 
(D) of paragraph (1).’’. 
(b) ADDITIONAL BONUSES FOR STATES THAT SERVE 
WORKING FAMILIES.—Section 16 of the Food Stamp Act 
of 1977 (7 U.S.C. 2025) is amended by adding at the end 
the following: 
‘‘(l) ADDITIONAL
BONUSES
FOR
STATES
THAT 
SERVE WORKING FAMILIES.—
‘‘(1) IN GENERAL.—The Secretary shall meas-
ure—
‘‘(A) compliance with the deadlines under 
paragraphs (3) and (9) of section 11(e); 
‘‘(B) the percentage of negative eligibility 
decisions that are made in error; and 
‘‘(C) the number of households that 
have—
‘‘(i) incomes less than 130 percent of 
the poverty rate; 
‘‘(ii) annual earnings equal to at least 
1000 times the Federal minimum hourly 
rate under the Fair Labor Standards Act 
of 1938 (29 U.S.C. 201 et seq.); and 
‘‘(iii) children under age 18;
705
that receive food stamps in the State as a per-
centage of the number of the low-income work-
ing households with children in the State. 
‘‘(2) BONUS PAYMENTS.—For each fiscal year, 
with respect to each of the performance measures in 
paragraph (1), the Secretary shall make excellence 
bonus payments of $1,000,000 to—
‘‘(A) each of the 5 States with the highest 
performance; and 
‘‘(B) each of the 5 States with the per-
formance that has most improved during the 
fiscal year. 
‘‘(3) INVESTIGATION.—
‘‘(A) IN GENERAL.—For any fiscal year in 
which the Secretary determines that a 95-per-
cent statistical probability exists that the per-
formance of a State agency with respect to any 
of the performance measures in paragraph (1) 
is substantially worse than a level the Secretary 
determines reasonable, the Secretary shall in-
vestigate the State agency. 
‘‘(B) CORRECTIVE
ACTION.—If the Sec-
retary determines that the administration by 
the State agency has been deficient, the Sec-
706
retary shall require the State agency to take 
prompt corrective action.’’. 
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
take effect on the date of enactment of this Act. 
(2) TARGETED QUALITY CONTROL SYSTEM.—
The amendments made by subsection (a) shall not 
apply with respect to any sanction, appeal, agree-
ment, or other action taken by the Secretary of Ag-
riculture or a State agency that is based on a pay-
ment error rate established for any fiscal year before 
fiscal year 2003.
TITLE VII—FAIR START 
HOUSING 
Subtitle A—Section 8 Vouchers 
SEC. 7001. RENTAL ASSISTANCE VOUCHER PROGRAM. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development (referred to in this subtitle as the 
‘‘Secretary’’) shall provide 1,000,000 incremental housing 
vouchers for rental assistance under section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 
during the 10 year period following the date of enactment 
of this Act.
707
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as necessary 
to carry out this section. 
SEC. 7002. VOUCHER SUCCESS FUND. 
(a) VOUCHER SUCCESS FUND.—
(1) ESTABLISHMENT.—There is established the 
Voucher Success Fund (referred to in this section as 
the ‘‘Fund’’). 
(2) PURPOSES.—The purposes of the Fund 
are—
(A) to address barriers that individuals en-
counter in successfully utilizing voucher rental 
assistance provided under section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(o)); and 
(B) to help improve the operation of that 
voucher rental assistance program. 
(3) USES OF ASSISTANCE.—The Secretary shall 
provide assistance from the Fund to States on a 
competitive basis, which assistance shall be used—
(A) by communities that are determined by 
an appropriate State agency of the State to be 
experiencing problems in utilizing voucher rent-
al assistance provided under section 8(o) of the
708
United States Housing Act of 1937 (42 U.S.C. 
1437f(o)), including—
(i) difficult market conditions; 
(i) low rates of success for families at-
tempting to use voucher rental assistance 
provided under that section; 
(iii) concentrations of assisted families 
in high poverty neighborhoods; and 
(iv) other program difficulties; and 
(B) for activities that include—
(i) technical assistance to local public 
housing authorities or communities to im-
prove the success of the voucher rental as-
sistance program under section 8(o) of the 
United States Housing Act (42 U.S.C. 
1437f(o)); 
(ii) assistance for families in using 
that assistance, including mobility coun-
seling, assistance with security deposits, 
transportation, and other activities in-
tended to increase the likelihood that fami-
lies will succeed in leasing units or leasing 
units outside of areas of concentrated pov-
erty; and