I 
115TH CONGRESS 
1ST SESSION H. R. 4074 
To strengthen and expand proven anti-poverty programs and initiatives. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 16, 2017 
Ms. LEE (for herself, Ms. SLAUGHTER, Ms. MOORE, Ms. JACKSON LEE, Mrs. 
BEATTY, Mr. HASTINGS, Ms. NORTON, Mrs. TORRES, Mr. EVANS, Mr. 
PAYNE, Mr. TAKANO, Mr. BUTTERFIELD, Mr. ESPAILLAT, Ms. JAYAPAL, 
Mr. POCAN, Mrs. WATSON COLEMAN, Mr. CARSON of Indiana, Mr. CON-
YERS, Ms. SCHAKOWSKY, Ms. MCCOLLUM, Mr. GRIJALVA, Ms. SPEIER, 
Mr. MCNERNEY, Mr. SERRANO, and Mr. ELLISON) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on House Administration, Oversight 
and Government Reform, Education and the Workforce, Financial Serv-
ices, Agriculture, Transportation and Infrastructure, Rules, the Budget, 
and the Judiciary, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To strengthen and expand proven anti-poverty programs and 
initiatives. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pathways Out of Pov-
erty Act of 2017’’. 
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SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
DIVISION A—EDUCATION 
TITLE I—STRONG START FOR AMERICA’S CHILDREN 
Subtitle A—Access to Voluntary Prekindergarten for Low- and Moderate- 
Income Families 
Sec. 111. Purposes. 
Sec. 112. Definitions. 
Sec. 113. Program authorization. 
Sec. 114. Allotments and reservations of funds. 
Sec. 115. State eligibility criteria. 
Sec. 116. State applications. 
Sec. 117. State use of funds. 
Sec. 118. Additional prekindergarten services. 
Sec. 119. Performance measures and targets. 
Sec. 120. Matching requirements. 
Sec. 121. Eligible local entity applications. 
Sec. 122. Required subgrant activities. 
Sec. 123. Report and evaluation. 
Sec. 124. Prohibition of required participation or use of funds for assessments. 
Sec. 125. Coordination with Head Start programs. 
Sec. 126. Technical assistance in program administration. 
Sec. 127. Authorization of appropriations. 
Subtitle B—Prekindergarten Development Grants 
Sec. 151. Prekindergarten development grants. 
TITLE II—YOUTH PROMISE/FEDERAL COORDINATION OF LOCAL 
AND TRIBAL JUVENILE JUSTICE INFORMATION AND EFFORTS 
Sec. 201. PROMISE Advisory Panel. 
Sec. 202. Geographic assessment of resource allocation. 
TITLE III—PROMISE GRANTS 
Sec. 301. Purposes. 
Sec. 302. Definitions. 
Subtitle A—PROMISE Assessment and Planning Grants 
Sec. 310. PROMISE Assessment and Planning grants authorized. 
Sec. 311. PROMISE Coordinating Councils. 
Sec. 312. Needs and strengths assessment. 
Sec. 313. PROMISE Plan components. 
Sec. 314. Authorization of appropriations. 
Subtitle B—PROMISE Implementation Grants 
Sec. 320. PROMISE Implementation grants authorized. 
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Sec. 321. PROMISE Implementation grant application requirements. 
Sec. 322. Grant award guidelines. 
Sec. 323. Reports. 
Sec. 324. Authorization of appropriations. 
Subtitle C—General PROMISE Grant Provisions 
Sec. 330. Nonsupplanting clause. 
Sec. 331. Grant application review panel. 
Sec. 332. Evaluation of PROMISE grant programs. 
TITLE IV—PELL GRANT PRESERVATION AND EXPANSION ACT 
Sec. 401. Short title. 
Sec. 402. Findings. 
Sec. 403. References. 
Sec. 404. Funding Federal Pell Grants through mandatory funding. 
Sec. 405. Restoring Federal Pell Grant eligibility for borrower defense. 
Sec. 406. Federal Pell Grant eligibility for DREAMer students. 
Sec. 407. Repeal of suspension of eligibility under the Higher Education Act 
of 1965 for grants, loans, and work assistance for drug-related 
offenses. 
Sec. 408. Extending Federal Pell Grant eligibility of certain short-term pro-
grams. 
Sec. 409. Providing Federal Pell grants for Iraq and Afghanistan veteran’s de-
pendents. 
Sec. 410. Increasing support for working students by 35 percent. 
Sec. 411. Increasing the Federal Pell Grant auto-zero threshold. 
Sec. 412. Raising the total semesters of Federal Pell Grant eligibility. 
Sec. 413. Conforming amendments. 
Sec. 414. Effective date. 
DIVISION B—HOUSING 
TITLE V—COMMON SENSE HOUSING INVESTMENT 
Sec. 501. Congressional findings. 
Sec. 502. Replacement of mortgage interest deduction with mortgage interest 
credit. 
Sec. 503. Deduction allowed for interest and taxes relating to land for dwelling 
purposes owned or leased by cooperative housing corporations. 
Sec. 504. Use of mortgage interest savings to increase low-income housing tax 
credit. 
Sec. 505. Use of mortgage interest savings for affordable housing programs. 
TITLE VI—LOW-INCOME HOUSING TAX CREDIT FOR HOMELESS 
YOUTH 
Sec. 601. Students who were homeless youths or homeless veterans permitted 
to occupy low-income housing units. 
Sec. 602. Renters tax credit. 
DIVISION C—NUTRITION 
TITLE VII—IMPROVING TEMPORARY ASSISTANCE TO NEEDY 
FAMILIES PROGRAM 
Sec. 701. References. 
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Sec. 702. State plans required to address whether and how States will provide 
assistance to neediest geographic areas. 
Sec. 703. Funding of the TANF program. 
Sec. 704. Work requirements. 
Sec. 705. Work rules. 
Sec. 706. Prohibition on imposing limit of less than 60 months on duration of 
assistance. 
Sec. 707. Response of TANF program to economic recessions. 
Sec. 708. Requirement that States use merit-based system in administration of 
TANF programs. 
Sec. 709. Ban on using Federal TANF funds to replace State and local spend-
ing that does not meet the definition of qualified State expendi-
tures. 
Sec. 710. TANF assistance to meet basic family economic needs. 
Sec. 711. State plans and reports on child poverty. 
Sec. 712. Requirement that States adopt standards and procedures to address 
domestic and sexual violence among TANF recipients. 
Sec. 713. Child care entitlement. 
Sec. 714. Child support enforcement. 
Sec. 715. State option to extend eligibility for assistance to children through 
age 21; prohibition on considering financial aid tied to edu-
cation of child in determining eligibility for, or amount of as-
sistance; prohibition on imposing additional requirements based 
on educational enrollment of child. 
Sec. 716. Elimination of certain other bars to TANF assistance. 
Sec. 717. Effective date. 
TITLE VIII—EMPLOYMENT ADVANCEMENT, RETENTION, AND 
NAVIGATION ACT 
Sec. 811. Focus on employment. 
Sec. 812. Modification relating to the Contingency Fund. 
Sec. 813. Training for in-demand jobs. 
Sec. 814. Effective date. 
TITLE IX—RESTORING SUPPLEMENTAL NUTRITION ASSISTANCE 
PROGRAMS FUNDING CUTS INSTITUTED IN FARM BILL (HEAT- 
AND-EAT) 
Sec. 901. Restoration of standard utility allowances based on the receipt of en-
ergy assistance payments. 
TITLE X—HELPING HUNGRY STUDENTS LEARN 
Sec. 1001. Findings. 
Sec. 1002. School Lunch Program. 
Sec. 1003. School Breakfast Program. 
Sec. 1004. Summer Electronic Benefits Transfer for Children program. 
Sec. 1005. Weekends and holidays without hunger. 
TITLE XI—FOOD ASSISTANCE TO IMPROVE REINTEGRATION ACT 
Sec. 1101. Repeal of denial of benefits. 
DIVISION D—LABOR/JOB TRAINING 
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TITLE XII—ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS 
BACK TO WORK 
Subtitle A—Supporting Unemployed Workers 
Sec. 1201. Short title. 
PART I—EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND 
CERTAIN EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT
OF 
SELF-EMPLOYMENT ASSISTANCE PROGRAM 
Sec. 1211. Extension of Emergency Unemployment Compensation program. 
Sec. 1212. Temporary extension of extended benefit provisions. 
Sec. 1213. Additional extended unemployment benefits under the Railroad Un-
employment Insurance Act. 
PART II—REEMPLOYMENT NOW PROGRAM 
Sec. 1221. Establishment of Reemployment NOW program. 
Sec. 1222. Distribution of funds. 
Sec. 1223. State plan. 
Sec. 1224. Bridge to Work program. 
Sec. 1225. Wage insurance. 
Sec. 1226. Enhanced reemployment strategies. 
Sec. 1227. Self-employment programs. 
Sec. 1228. Additional innovative programs. 
Sec. 1229. Guidance and additional requirements. 
Sec. 1230. Report of information and evaluations to Congress and the public. 
Sec. 1231. State. 
PART III—SHORT-TIME COMPENSATION PROGRAM 
Sec. 1241. Temporary financing of short-time compensation payments in States 
with programs in law. 
Sec. 1242. Temporary financing of short-time compensation agreements. 
Sec. 1243. Grants for short-time compensation programs. 
Sec. 1244. Assistance and guidance in implementing programs. 
Sec. 1245. Reports. 
Subtitle B—Long-Term Unemployed Hiring Preferences 
Sec. 1251. Long-term unemployed workers work opportunity tax credits. 
Subtitle C—Pathways Back to Work 
Sec. 1261. Short title. 
Sec. 1262. Authorization of appropriations. 
Sec. 1263. Availability of funds. 
Sec. 1264. Subsidized employment for unemployed, low-income adults. 
Sec. 1265. Summer employment and year-round employment opportunities for 
low-income youth. 
Sec. 1266. Work-based employment strategies of demonstrated effectiveness. 
Sec. 1267. General requirements. 
Sec. 1268. Definitions. 
Subtitle D—Prohibition of Discrimination in Employment on the Basis of an 
Individual’s Status as Unemployed 
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Sec. 1271. Short title. 
Sec. 1272. Findings and purpose. 
Sec. 1273. Definitions. 
Sec. 1274. Prohibited acts. 
Sec. 1275. Enforcement. 
Sec. 1276. Federal and State immunity. 
Sec. 1277. Relationship to other laws. 
Sec. 1278. Severability. 
Sec. 1279. Effective date. 
TITLE XIII—LIVING AMERICAN WAGE 
Sec. 1301. Short title. 
Sec. 1302. Minimum wage increases. 
Sec. 1303. Tipped employees. 
Sec. 1304. Newly hired employees who are less than 20 years old. 
Sec. 1305. Publication of notice. 
Sec. 1306. Promoting economic self-sufficiency for individuals with disabilities. 
Sec. 1307. General effective date. 
DIVISION E—ANTI-POVERTY TAX PROVISIONS 
TITLE XIV—CHILD TAX CREDIT PERMANENCY 
Sec. 1401. Inflation adjustment of the child tax credit. 
TITLE XV—EARNED INCOME TAX CREDIT 
Sec. 1501. Expansion of Earned Income Credit. 
TITLE XVI—CHILD CARE ACCESS AND REFUNDABILITY 
EXPANSION ACT 
Sec. 1601. Credit for dependent care expenses. 
Sec. 1602. Amendments to the Child Care and Development Block Grant Act 
of 1990. 
DIVISION I—MISCELLANEOUS 
TITLE I—POVERTY IMPACT TRIGGER 
Sec. 1701. Certain poverty impact legislation subject to point of order. 
Sec. 1702. Congressional Budget Office Poverty Impact Division. 
Sec. 1703. Exercise of rulemaking powers. 
Sec. 1704. Effective date. 
TITLE II—HALF IN TEN ACT TO CREATE A NATIONAL STRATEGY 
TO REDUCE POVERTY 
Sec. 1801. Findings. 
Sec. 1802. Definitions. 
Sec. 1803. Establishment of the Federal Interagency Working Group on Reduc-
ing Poverty. 
Sec. 1804. Appointment and responsibilities of the Director. 
Sec. 1805. Consultation. 
Sec. 1806. Reports to Congress and the public. 
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(3) DUAL
LANGUAGE
LEARNER.—The term 
‘‘dual language learner’’ means an individual who is 
limited English proficient. 
(4) 
EARLY
CHILDHOOD
EDUCATION
PRO-
GRAM.—The term ‘‘early childhood education pro-
gram’’ has the meaning given the term under section 
103 of the Higher Education Act of 1965 (20 
U.S.C. 1003). 
(5) ELEMENTARY SCHOOL.—The term ‘‘elemen-
tary school’’ has the meaning given the term in sec-
tion 8101 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7801). 
(6) ELIGIBILITY DETERMINATION DATE.—The 
term ‘‘eligibility determination date’’ means the date 
used to determine eligibility for public elementary 
school in the community in which the eligible local 
entity involved is located. 
(7) ELIGIBLE LOCAL ENTITY.—The term ‘‘eligi-
ble local entity’’ means— 
(A) a local educational agency, including— 
(i) a charter school or a charter man-
agement organization that acts as a local 
educational agency; or 
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(ii) an educational service agency in 
partnership with a local educational agen-
cy; 
(B) an entity that carries out an early 
childhood education program; or 
(C) a consortium of entities described in 
subparagraph (A) or (B). 
(8) FULL-DAY.—The term ‘‘full-day’’ means a 
day that is— 
(A) equivalent to a full school day at the 
public elementary schools in a State; and 
(B) not less than 5 hours a day. 
(9) HIGH-QUALITY
PREKINDERGARTEN
PRO-
GRAM.—The term ‘‘high-quality prekindergarten 
program’’ means a prekindergarten program sup-
ported by an eligible local entity that includes, at a 
minimum, the following elements based on nationally 
recognized standards: 
(A) Serves children who— 
(i) are age 4 or children who are age 
3 or 4, by the eligibility determination date 
(including children who turn age 5 while 
attending the program); or 
(ii) have attained the legal age for 
State-funded prekindergarten. 
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(B) Requires high qualifications for staff, 
including that teachers meet the requirements 
of one of the following clauses: 
(i) The teacher has a bachelor’s de-
gree in early childhood education or a re-
lated field with coursework that dem-
onstrates competence in early childhood 
education. 
(ii) The teacher— 
(I) has a bachelor’s degree in any 
field; 
(II) has demonstrated knowledge 
of early childhood education by pass-
ing a State-approved assessment in 
early childhood education; 
(III) while employed as a teacher 
in the prekindergarten program, is en-
gaged in ongoing professional develop-
ment in early childhood education for 
not less than 2 years; and 
(IV) not more than 3 years after 
starting employment as a teacher in 
the prekindergarten program, enrolls 
in and completes a State-approved ed-
ucator preparation program in which 
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the teacher receives training and sup-
port in early childhood education. 
(iii) The teacher has a bachelor’s de-
gree with a credential, license, or endorse-
ment that demonstrates competence in 
early childhood education. 
(C) Maintains an evidence-based maximum 
class size. 
(D) Maintains an evidence-based child to 
instructional staff ratio. 
(E) Offers a full-day program. 
(F) Provides developmentally appropriate, 
evidence-based curricula and learning environ-
ments that are aligned with the State’s early 
learning and development standards described 
in section 115(1). 
(G) Offers instructional staff salaries com-
parable to kindergarten through grade 12 
teaching staff. 
(H) Provides for ongoing monitoring and 
program evaluation to ensure continuous im-
provement. 
(I) Offers accessible comprehensive services 
for children that include, at a minimum— 
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(i) screenings for vision, dental, health 
(including mental health), and development 
and referrals, and assistance obtaining 
services, when appropriate; 
(ii) family engagement opportunities 
that take into account home language, 
such as parent conferences (including par-
ent input about their child’s development) 
and support services, such as parent edu-
cation; 
(iii) nutrition services, including nutri-
tious meals and snack options aligned with 
requirements set by the most recent Child 
and Adult Care Food Program guidelines 
promulgated by the Department of Agri-
culture as well as regular, age-appropriate, 
nutrition education for children and their 
families; 
(iv) programs coordinated with local 
educational agencies and entities providing 
programs authorized under section 619 
and part C of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1419 and 
1431 et seq.); 
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(v) physical activity programs aligned 
with evidence-based guidelines, such as 
those recommended by the Institute of 
Medicine, and which take into account and 
accommodate children with disabilities; 
(vi) additional support services, as ap-
propriate, based on the findings of the 
needs analysis as described in section 120; 
and 
(vii) on-site coordination, to the max-
imum extent feasible. 
(J) Provides high-quality professional de-
velopment for all staff, including regular in- 
classroom observation for teachers and teacher 
assistants by individuals trained in such obser-
vation. 
(K) Meets the education performance 
standards in effect under section 641A(a)(1)(B) 
of 
the 
Head 
Start 
Act 
(42 
U.S.C. 
9836a(a)(1)(B)). 
(L) Maintains evidence-based health and 
safety standards. 
(10) GOVERNOR.—The term ‘‘Governor’’ means 
the chief executive officer of a State. 
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(16) MIGRATORY CHILD.—The term ‘‘migratory 
child’’ has the meaning given the term in section 
1309 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6399). 
(17) OUTLYING
AREA.—The term ‘‘outlying 
area’’ means each of the United States Virgin Is-
lands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and the Republic 
of Palau. 
(18) POVERTY LINE.—The term ‘‘poverty line’’ 
means the official poverty line (as defined by the Of-
fice of Management and Budget)— 
(A) adjusted to reflect the percentage 
change in the Consumer Price Index for All 
Urban Consumers published by the Bureau of 
Labor Statistics of the Department of Labor 
for the most recent 12-month period or other 
interval for which the data are available; and 
(B) applicable to a family of the size in-
volved. 
(19) SECONDARY
SCHOOL.—The term ‘‘sec-
ondary school’’ has the meaning given the term in 
section 8101 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7801). 
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(20) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Education. 
(21) STATE.—Except as otherwise provided in 
this subtitle, the term ‘‘State’’ means each of the 50 
States, the District of Columbia, the Commonwealth 
of Puerto Rico, and each of the outlying areas. 
(22) STATE
ADVISORY
COUNCIL
ON
EARLY 
CHILDHOOD
EDUCATION
AND
CARE.—The term 
‘‘State Advisory Council on Early Childhood Edu-
cation and Care’’ means the State Advisory Council 
on Early Childhood Education and Care established 
under section 642B(b) of the Head Start Act (42 
U.S.C. 9837b(b)). 
SEC. 113. PROGRAM AUTHORIZATION. 
From amounts made available to carry out this sub-
title, the Secretary, in consultation with the Secretary of 
Health and Human Services, shall award grants to States 
to implement high-quality prekindergarten programs, con-
sistent with the purposes of this subtitle described in sec-
tion 111. For each fiscal year, the funds provided under 
a grant by a State shall equal the allotment determined 
for the State under section 114. 
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SEC. 114. ALLOTMENTS AND RESERVATIONS OF FUNDS. 
(a) RESERVATION.—From the amount made avail-
able each fiscal year to carry out this subtitle, the Sec-
retary shall— 
(1) reserve not less than 1 percent and not 
more than 2 percent for payments to Indian tribes 
and tribal organizations; 
(2) reserve 1⁄2 of 1 percent for the outlying 
areas to be distributed among the outlying areas on 
the basis of their relative need, as determined by the 
Secretary in accordance with the purposes of this 
subtitle; 
(3) reserve 1⁄2 of 1 percent for eligible local en-
tities that serve children in families who are engaged 
in migrant or seasonal agricultural labor; and 
(4) reserve not more than 1 percent or 
$30,000,000, whichever amount is less, for national 
activities, including administration, technical assist-
ance, and evaluation. 
(b) ALLOTMENTS.— 
(1) IN
GENERAL.—From the amount made 
available each fiscal year to carry out this subtitle 
and not reserved under subsection (a), the Secretary 
shall make allotments to States in accordance with 
paragraph (2) that have submitted an approved ap-
plication. 
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(2) ALLOTMENT AMOUNT.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall allot the amount 
made available under paragraph (1) for a fiscal 
year among the States in proportion to the 
number of children who are age 4 who reside 
within the State and are from families with in-
comes at or below 200 percent of the poverty 
line for the most recent year for which satisfac-
tory data are available, compared to the num-
ber of such children who reside in all such 
States for that fiscal year. 
(B) MINIMUM ALLOTMENT AMOUNT.—No 
State receiving an allotment under subpara-
graph (A) may receive less than 1⁄2 of 1 percent 
of the total amount allotted under such sub-
paragraph. 
(3) REALLOTMENT AND CARRY OVER.— 
(A) IN GENERAL.—If one or more States 
do not receive an allotment under this sub-
section for any fiscal year, the Secretary may 
use the amount of the allotment for that State 
or States, in such amounts as the Secretary de-
termines appropriate, for either or both of the 
following: 
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(i) To increase the allotments of 
States with approved applications for the 
fiscal year, consistent with subparagraph 
(B). 
(ii) To carry over the funds to the 
next fiscal year. 
(B) REALLOTMENT.—In increasing allot-
ments under subparagraph (A)(i), the Secretary 
shall allot to each State with an approved appli-
cation an amount that bears the same relation-
ship to the total amount to be allotted under 
subparagraph (A)(i), as the amount the State 
received under paragraph (2) for that fiscal 
year bears to the amount that all States re-
ceived under paragraph (2) for that fiscal year. 
(4) STATE.—For purposes of this subsection, 
the term ‘‘State’’ means each of the 50 States, the 
District of Columbia, and the Commonwealth of 
Puerto Rico. 
(c) FLEXIBILITY.—The Secretary may make minimal 
adjustments to allotments under this subsection, which 
shall neither lead to a significant increase or decrease in 
a State’s allotment determined under subsection (b), based 
on a set of factors, such as the level of program participa-
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tion and the estimated cost of the activities specified in 
the State plan under section 116(a)(2). 
SEC. 115. STATE ELIGIBILITY CRITERIA. 
A State is eligible to receive a grant under this sub-
title if the State demonstrates to the Secretary that the 
State— 
(1) has established or will establish early learn-
ing and development standards that describe what 
children from birth to kindergarten entry should 
know and be able to do, are universally designed and 
developmentally, culturally, and linguistically appro-
priate, are aligned with the State’s challenging aca-
demic content standards and challenging student 
academic achievement standards, as adopted under 
section 1111(b)(1) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311(b)(1)), and 
cover the essential domains of school readiness, 
which address— 
(A) physical well-being and motor develop-
ment; 
(B) social and emotional development; 
(C) approaches to learning, including cre-
ative arts expression; 
(D) developmentally appropriate oral and 
written language and literacy development; and 
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(E) cognition and general knowledge, in-
cluding early mathematics and early scientific 
development; 
(2) has the ability or will develop the ability to 
link prekindergarten data with its elementary school 
and secondary school data for the purpose of col-
lecting longitudinal information for all children par-
ticipating in the State’s high-quality prekindergarten 
program and any other federally funded early child-
hood program that will remain with the child 
through the child’s public education through grade 
12; 
(3) offers State-funded kindergarten for chil-
dren who are eligible children for that service in the 
State; and 
(4) has established a State Advisory Council on 
Early Childhood Education and Care. 
SEC. 116. STATE APPLICATIONS. 
(a) IN GENERAL.—To receive a grant under this sub-
title, the Governor of a State, in consultation with the In-
dian tribes and tribal organizations in the State, if any, 
shall submit an application to the Secretary at such time, 
in such manner, and containing such information as the 
Secretary may reasonably require. At a minimum, each 
such application shall include— 
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lotter on DSKBCFDHB2PROD with BILLS
(1) an assurance that the State— 
(A) will coordinate with and continue to 
participate in the programs authorized under 
section 619 and part C of the Individuals with 
Disabilities Education Act (20 U.S.C. 1419 and 
1431 et seq.), the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.), and the maternal, infant, and early child-
hood home visiting programs funded under sec-
tion 511 of the Social Security Act (42 U.S.C. 
711) for the duration of the grant; 
(B) will designate a State-level entity (such 
as an agency or joint interagency office), se-
lected by the Governor, for the administration 
of the grant, which shall coordinate and consult 
with the State educational agency if the entity 
is not the State educational agency; and 
(C) will establish, or certify the existence 
of, program standards for all State prekinder-
garten programs consistent with the definition 
of a high-quality prekindergarten program 
under section 112; 
(2) a description of the State’s plan to— 
(A) use funds received under this subtitle 
and the State’s matching funds to provide high- 
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quality prekindergarten programs, in accord-
ance with section 117(d), with open enrollment 
for all children in the State who— 
(i) are described in section 112(9)(A); 
and 
(ii) are from families with incomes at 
or below 200 percent of the poverty line; 
(B) develop or enhance a system for moni-
toring eligible local entities that are receiving 
funds under this subtitle for compliance with 
quality standards developed by the State and to 
provide program improvement support, which 
may be accomplished through the use of a 
State-developed system for quality rating and 
improvement; 
(C) if applicable, expand participation in 
the State’s high-quality prekindergarten pro-
grams to children from families with incomes 
above 200 percent of the poverty line; 
(D) carry out the State’s comprehensive 
early learning assessment system, or how the 
State plans to develop such a system, ensuring 
that any assessments are culturally, develop-
mentally, and age-appropriate and consistent 
with the recommendations from the study on 
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Developmental Outcomes and Assessments for 
Young Children by the National Academy of 
Sciences, consistent with section 649(j) of the 
Head Start Act (42 U.S.C. 9844); 
(E) develop, implement, and make publicly 
available the performance measures and targets 
described in section 119; 
(F) increase the number of teachers with 
bachelor’s degrees in early childhood education, 
or with bachelor’s degrees in another closely re-
lated field and specialized training in early 
childhood education, including how institutions 
of higher education will support increasing the 
number of teachers with such degrees and 
training, including through the use of assess-
ments of prior learning, knowledge, and skills 
to facilitate and expedite attainment of such de-
grees; 
(G) coordinate and integrate the activities 
funded under this subtitle with Federal, State, 
and local services and programs that support 
early childhood education and care, including 
programs supported under this subtitle, the El-
ementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.), the Individuals with 
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lotter on DSKBCFDHB2PROD with BILLS
Disabilities Education Act (20 U.S.C. 1400 et 
seq.), the Head Start Act (42 U.S.C. 9831 et 
seq.), the Community Services Block Grant Act 
(42 U.S.C. 9901 et seq.), the Child Care and 
Development Block Grant Act of 1990 (42 
U.S.C. 9858 et seq.), the temporary assistance 
for needy families program under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et 
seq.), the State incentive grant program under 
section 14006 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111–5), 
federally funded early literacy programs, the 
maternal, infant, and early childhood home vis-
iting programs funded under section 511 of the 
Social Security Act (42 U.S.C. 711), health im-
provements to child care funded under title 
XIX of the Social Security Act (42 U.S.C. 1396 
et seq.), the program under subtitle B of title 
VII of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11431 et seq.), the Invest-
ing In Innovation program under section 14007 
of the American Recovery and Reinvestment 
Act of 2009 (Public Law 111–5), programs au-
thorized under part E of title IV of the Social 
Security Act (42 U.S.C. 670 et seq.), the Fos-
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tering Connections to Success and Increasing 
Adoptions Act of 2008 (Public Law 110–351), 
and any other Federal, State, or local early 
childhood education programs used in the 
State; 
(H) award subgrants to eligible local enti-
ties, and in awarding such subgrants, facilitate 
a delivery system of high-quality prekinder-
garten programs that includes diverse pro-
viders, such as providers in community-based, 
public school, and private settings, and consider 
the system’s impact on options for families; 
(I) in the case of a State that does not 
have a funding mechanism for subgranting 
funds to implement high-quality prekinder-
garten, use objective criteria in awarding sub-
grants to eligible local entities that will imple-
ment high-quality prekindergarten programs, 
including actions the State will take to ensure 
that eligible local entities will coordinate with 
local educational agencies or other early learn-
ing providers, as appropriate, to carry out ac-
tivities to provide children served under this 
subtitle with a successful transition from pre-
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school into kindergarten, which activities shall 
include— 
(i) aligning curricular objectives and 
instruction; 
(ii) providing staff professional devel-
opment, including opportunities for joint- 
professional development on early learning 
and kindergarten through grade 3 stand-
ards, assessments, and curricula; 
(iii) coordinating family engagement 
and support services; and 
(iv) encouraging the shared use of fa-
cilities and transportation, as appropriate; 
(J) use the State early learning and devel-
opment standards described in section 115(1) 
to address the needs of dual language learners, 
including by incorporating benchmarks related 
to English language development; 
(K) identify barriers, and propose solutions 
to overcome such barriers, which may include 
seeking assistance under section 126, in the 
State to effectively use and integrate Federal, 
State, and local public funds and private funds 
for early childhood education that are available 
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lotter on DSKBCFDHB2PROD with BILLS
to the State on the date on which the applica-
tion is submitted; 
(L) support articulation agreements (as 
defined in section 486A of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1093a)) between 
public 2-year and public 4-year institutions of 
higher education in the State for early child-
hood teacher preparation programs and related 
fields; 
(M) ensure that the higher education pro-
grams in the State have the capacity to prepare 
a workforce to provide high-quality prekinder-
garten programs; 
(N) support workforce development, in-
cluding State and local policies that support 
prekindergarten instructional staff’s ability to 
earn a degree, certification, or other specializa-
tions or qualifications, including policies on 
leave, substitutes, and child care services, in-
cluding non-traditional hour child care; 
(O) hold eligible local entities accountable 
for use of funds; 
(P) ensure that the State’s early learning 
and development standards are integrated into 
the instructional and programmatic practices of 
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lotter on DSKBCFDHB2PROD with BILLS
high-quality prekindergarten programs and re-
lated programs and services, such as those pro-
vided to children under section 619 and part C 
of the Individuals with Disabilities Education 
Act (20 U.S.C. 1419 and 1431 et seq.); 
(Q) increase the number of children in the 
State who are enrolled in high-quality kinder-
garten programs and carry out a strategy to 
implement such a plan; 
(R) coordinate the State’s activities sup-
ported by grants under this subtitle with activi-
ties in State plans required under the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 6301 et seq.), the Individuals with Dis-
abilities Education Act (20 U.S.C. 1400 et 
seq.), the Head Start Act (42 U.S.C. 9831 et 
seq.), the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858 et seq.), 
and the Adult Education and Family Literacy 
Act (20 U.S.C. 9201 et seq.); 
(S) encourage eligible local entities to co-
ordinate with community-based learning re-
sources, such as libraries, arts and arts edu-
cation programs, appropriate media programs, 
family literacy programs, public parks and 
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recreation programs, museums, nutrition edu-
cation programs, and programs supported by 
the Corporation for National and Community 
Service; 
(T) work with eligible local entities, in con-
sultation with elementary school principals, to 
ensure that high-quality prekindergarten pro-
grams have sufficient facilities to meet the 
needs of children eligible for prekindergarten; 
(U) support local early childhood coordi-
nating entities, such as local early childhood 
councils, if applicable, and help such entities to 
coordinate early childhood education programs 
with high-quality prekindergarten programs to 
ensure effective and efficient delivery of early 
childhood education program services; 
(V) ensure that the provision of high-qual-
ity prekindergarten programs will not lead to a 
diminution of services for infants and toddlers 
or disrupt the care of infants and toddlers in 
the geographic area served by the eligible local 
entity, which may include demonstrating that 
the State will direct funds to provide high-qual-
ity early childhood education and care to in-
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lotter on DSKBCFDHB2PROD with BILLS
fants and toddlers in accordance with section 
117(d); and 
(W) ensure that all high-quality prekinder-
garten programs the State supports under this 
Act will conduct criminal history background 
checks that meet the requirements of subsection 
(b) on employees and applicants for employ-
ment with direct access to children; and 
(3) an inventory of the State’s higher education 
programs that prepare individuals for work in a 
high-quality prekindergarten program, including— 
(A) certification programs; 
(B) associate degree programs; 
(C) baccalaureate degree programs; 
(D) master’s degree programs; and 
(E) other programs that lead to a speciali-
zation in early childhood education, or a related 
field. 
(b) CRIMINAL HISTORY BACKGROUND CHECKS.— 
(1) IN GENERAL.—The criminal history back-
ground checks required under subsection (a)(2)(W) 
shall include— 
(A) a search of the State criminal registry 
or repository in the State in which the employee 
resides and previously resided; 
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lotter on DSKBCFDHB2PROD with BILLS
(B) a search of the State-based child abuse 
and neglect registries and databases in the 
State in which the employee resides and pre-
viously resided; 
(C) a Federal Bureau of Investigation fin-
gerprint check using the Integrated Automated 
Fingerprint Identification System; and 
(D) a search of the National Sex Offender 
Registry established under section 119 of the 
Adam Walsh Child Protection and Safety Act of 
2006 (42 U.S.C. 16919). 
(2) PROHIBITION OF EMPLOYMENT.—To be eli-
gible to receive a grant under this subtitle, a State 
shall prohibit an individual with direct access to chil-
dren from employment with a program supported 
with grant funds under this subtitle if the individual 
has been convicted of a violent felony or any violent 
or sexual crime against a minor, as defined by the 
State. 
(3) UPDATED CHECKS.—To be eligible to re-
ceive a grant under this subtitle, each criminal his-
tory background check conducted on an employee as 
required under subsection (a)(2)(W) shall be periodi-
cally repeated or updated in accordance with State 
law. 
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(4) APPEAL PROCESS.—To be eligible to receive 
a grant under this subtitle, a State shall provide an 
individual with a timely process by which to— 
(A) appeal the results of a criminal history 
background check conducted under this section 
to challenge the accuracy or completeness of the 
information produced by such background 
check; and 
(B) seek appropriate relief for any final 
employment decision based on materially inac-
curate or incomplete information produced by 
such background check. 
(c) DEVELOPMENT OF APPLICATION.—In developing 
an application for a grant under this subtitle, a State shall 
consult with the State Advisory Council on Early Child-
hood Education and Care and incorporate such Council’s 
recommendations, where applicable. 
(d) CONSTRUCTION.—Nothing in this section shall be 
construed to alter or otherwise affect the rights, remedies, 
and procedures afforded school employees, local edu-
cational agency employees, and the employees of early 
childhood education programs under Federal, State, or 
local laws (including applicable regulations or court or-
ders) or under the terms of collective bargaining agree-
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ments, memoranda of understanding, or other agreements 
between such employees and their employers. 
SEC. 117. STATE USE OF FUNDS. 
(a) RESERVATION FOR QUALITY IMPROVEMENT AC-
TIVITIES.— 
(1) IN
GENERAL.—A State that receives a 
grant under this subtitle may reserve for, not more 
than the first 4 years such State receives such a 
grant, not more than 20 percent of the grant funds 
for quality improvement activities if such activities 
support the elements of high-quality prekindergarten 
programs. Such quality improvement activities may 
include supporting teachers and principals in a 
State’s high-quality prekindergarten program, li-
censed or regulated child care, or Head Start pro-
grams to enable such teachers to earn a bacca-
laureate degree in early childhood education, or 
closely related field, through activities which may in-
clude— 
(A) expanding or establishing scholarships, 
counseling, and compensation initiatives to 
cover the cost of tuition, fees, materials, trans-
portation, and release time for such teachers; 
and 
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lotter on DSKBCFDHB2PROD with BILLS
(B) providing ongoing professional develop-
ment opportunities, including regular in-class-
room observation by individuals trained in such 
observation, for such teachers, principals, and 
teachers assistants to enable such teachers, 
principals, and teachers assistants to carry out 
the elements of high-quality prekindergarten 
programs, which may include activities that ad-
dress— 
(i) promoting children’s development 
across the essential domains of early learn-
ing and development; 
(ii) developmentally appropriate teach-
er-child interaction; 
(iii) effective family engagement; 
(iv) providing culturally competent in-
struction; 
(v) working with a diversity of chil-
dren and families, including children with 
special needs and dual language learners; 
(vi) childhood nutrition and physical 
education programs; and 
(vii) supporting the implementation of 
evidence-based curricula. 
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(2) NOT SUBJECT TO MATCHING.—The amount 
reserved under paragraph (1) shall not be subject to 
the matching requirements under section 120. 
(3) COORDINATION.—A State that reserves an 
amount under paragraph (1) shall coordinate the 
use of such amount with activities funded under sec-
tion 658G of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858e) and the Head 
Start Act (42 U.S.C. 9831 et seq.). 
(4) CONSTRUCTION.—A State may not use 
funds reserved under this subsection to meet the re-
quirement described in section 112(9)(G). 
(b) SUBGRANTS
FOR HIGH-QUALITY PREKINDER-
GARTEN PROGRAMS.—A State that receives a grant under 
this subtitle shall award subgrants of sufficient size to eli-
gible local entities to enable such eligible local entities to 
implement high-quality prekindergarten programs for chil-
dren who— 
(1) are described in section 112(9)(A); 
(2) reside within the State; and 
(3) are from families with incomes at or below 
200 percent of the poverty line. 
(c) ADMINISTRATION.—A State that receives a grant 
under this subtitle may reserve not more than 1 percent 
of the grant funds for administration of the grant, and 
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lotter on DSKBCFDHB2PROD with BILLS
may use part of that reservation for the maintenance of 
the State Advisory Council on Early Childhood Education 
and Care. 
(d) EARLY CHILDHOOD EDUCATION AND CARE PRO-
GRAMS FOR INFANTS AND TODDLERS.— 
(1) USE
OF
ALLOTMENT
FOR
INFANTS
AND 
TODDLERS.—An eligible State may apply to use, and 
the appropriate Secretary may grant permission for 
the State to use, not more than 15 percent of the 
funds made available through a grant received under 
this subtitle to award subgrants to early childhood 
education programs to provide, consistent with the 
State’s early learning and development guidelines for 
infants and toddlers, high-quality early childhood 
education and care to infants and toddlers who re-
side within the State and are from families with in-
comes at or below 200 percent of the poverty line. 
(2) APPLICATION.—To be eligible to use the 
grant funds as described in paragraph (1), the State 
shall submit an application to the appropriate Sec-
retary at such time, in such manner, and containing 
such information as the Secretary may require. Such 
application shall, at a minimum, include a descrip-
tion of how the State will— 
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lotter on DSKBCFDHB2PROD with BILLS
(A) designate a lead agency which shall ad-
minister such funds; 
(B) ensure that such lead agency, in co-
ordination with the State’s Advisory Council on 
Early Childhood Education and Care, will col-
laborate with other agencies in administering 
programs supported under this subsection for 
infants and toddlers in order to obtain input 
about the appropriate use of such funds and en-
sure coordination with programs for infants and 
toddlers funded under the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C. 
9858 et seq.), the Head Start Act (42 U.S.C. 
9831 et seq.) (including any Early Learning 
Quality Partnerships established in the State 
under section 645B of the Head Start Act, as 
added by section 202), the Race to the Top and 
Early Learning Challenge program under sec-
tion 14006 of Public Law 111–5 (123 Stat. 
283), the maternal, infant, and early childhood 
home visiting programs funded under section 
511 of the Social Security Act (42 U.S.C. 711), 
and part C of the Individuals with Disabilities 
Education Act (20 U.S.C. 1431 et seq.); 
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(C) ensure that infants and toddlers who 
benefit from amounts made available under this 
subsection will transition to and have the oppor-
tunity to participate in a high-quality pre-
kindergarten program supported under this 
subtitle; 
(D) in awarding subgrants, give preference 
to early childhood education programs that 
have a plan to increase services to children with 
special needs, including children with develop-
mental delays or disabilities, children who are 
dual language learners, homeless children, chil-
dren who are in foster care, children of migrant 
families, children eligible for free or reduced- 
price lunch under the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1751 et 
seq.), or children in the child welfare system; 
and 
(E) give priority to activities carried out 
under this subsection that will increase access 
to high-quality early childhood education pro-
grams for infants and toddlers in local areas 
with significant concentrations of low-income 
families that do not currently benefit from such 
programs. 
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(3) ELIGIBLE PROVIDERS.—A State may use 
the grant funds as described in paragraph (1) to 
serve infants and toddlers only by working with 
early childhood education program providers that— 
(A) offer full-day, full-year care, or other-
wise meet the needs of working families; and 
(B) meet high-quality standards, such as— 
(i) Early Head Start program per-
formance standards under the Head Start 
Act (42 U.S.C. 9831 et seq.); or 
(ii) high-quality, demonstrated, valid, 
and reliable program standards that have 
been established through a national entity 
that accredits early childhood education 
programs. 
(4) FEDERAL ADMINISTRATION.— 
(A) IN GENERAL.—The Secretary of Edu-
cation shall bear responsibility for obligating 
and disbursing funds to support activities under 
this subsection and ensuring compliance with 
applicable laws and administrative require-
ments, subject to paragraph (3). 
(B) INTERAGENCY AGREEMENT.—The Sec-
retary of Education and the Secretary of 
Health and Human Services shall jointly ad-
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lotter on DSKBCFDHB2PROD with BILLS
minister activities supported under this sub-
section on such terms as such Secretaries shall 
set forth in an interagency agreement. The Sec-
retary of Health and Human Services shall be 
responsible for any final approval of a State’s 
application under this subsection that addresses 
the use of funds designated for services to in-
fants and toddlers. 
(C) APPROPRIATE
SECRETARY.—In this 
subsection, the term ‘‘appropriate Secretary’’ 
used with respect to a function, means the Sec-
retary designated for that function under the 
interagency agreement. 
SEC. 118. ADDITIONAL PREKINDERGARTEN SERVICES. 
(a) PREKINDERGARTEN FOR 3-YEAR-OLDS.—Each 
State that certifies to the Secretary that the State pro-
vides universally available, voluntary, high-quality pre-
kindergarten programs for 4-year-old children who reside 
within the State and are from families with incomes at 
or below 200 percent of the poverty line may use the 
State’s allocation under section 114(b) to provide high- 
quality prekindergarten programs for 3-year-old children 
who reside within the State and are from families with 
incomes at or below 200 percent of the poverty line. 
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(b) SUBGRANTS.—In each State that has a city, 
county, or local educational agency that provides univer-
sally available high-quality prekindergarten programs for 
4-year-old children who reside within the State and are 
from families with incomes at or below 200 percent of the 
poverty line the State may use amounts from the State’s 
allocation under section 114(b) to award subgrants to eli-
gible local entities to enable such eligible local entities to 
provide high-quality prekindergarten programs for 3-year- 
old children who are from families with incomes at or 
below 200 percent of the poverty line and who reside in 
such city, county or local educational agency. 
SEC. 119. PERFORMANCE MEASURES AND TARGETS. 
(a) IN GENERAL.—A State that receives a grant 
under this subtitle shall develop, implement, and make 
publicly available the performance measures and targets 
for the activities carried out with grant funds. Such meas-
ures shall, at a minimum, track the State’s progress in— 
(1) increasing school readiness across all do-
mains for all categories of children, as described in 
section 123(b)(7), including children with disabilities 
and dual language learners; 
(2) narrowing school readiness gaps between 
minority and nonminority children, and low-income 
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lotter on DSKBCFDHB2PROD with BILLS
children and more advantaged children, in prepara-
tion for kindergarten entry; 
(3) decreasing placement for children in ele-
mentary school in special education programs and 
services as described in part B of the Individuals 
with Disabilities Education Act (20 U.S.C. 1411 et 
seq.); 
(4) increasing the number of programs meeting 
the criteria for high-quality prekindergarten pro-
grams, as defined by the State and in accordance 
with section 112; 
(5) decreasing the need for grade-to-grade re-
tention in elementary school; 
(6) if applicable, ensuring that high-quality pre-
kindergarten programs do not experience instances 
of chronic absence among the children who partici-
pate in such programs; 
(7) increasing the number and percentage of 
low-income children in high-quality early childhood 
education programs that receive financial support 
through funds provided under this subtitle; and 
(8) providing high-quality nutrition services, 
nutrition education, physical activity, and obesity 
prevention programs. 
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(b) PROHIBITION OF MISDIAGNOSIS PRACTICES.—A 
State shall not, in order to meet the performance meas-
ures and targets described in subsection (a), engage in 
practices or policies that will lead to the misdiagnosis or 
under-diagnosis of disabilities or developmental delays 
among children who are served through programs sup-
ported under this subtitle. 
SEC. 120. MATCHING REQUIREMENTS. 
(a) MATCHING FUNDS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), a State that receives a grant under this 
subtitle shall provide matching funds from non-Fed-
eral sources, as described in subsection (c), in an 
amount equal to— 
(A) 10 percent of the Federal funds pro-
vided under the grant in the first year of grant 
administration; 
(B) 10 percent of the Federal funds pro-
vided under the grant in the second year of 
grant administration; 
(C) 20 percent of the Federal funds pro-
vided under the grant in the third year of grant 
administration; 
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(D) 30 percent of the Federal funds pro-
vided under the grant in the fourth year of 
grant administration; 
(E) 40 percent of the Federal funds pro-
vided under the grant in the fifth year of grant 
administration; 
(F) 50 percent of the Federal funds pro-
vided under the grant in the sixth year of grant 
administration; 
(G) 75 percent of the Federal funds pro-
vided under the grant in the seventh year of 
grant administration; and 
(H) 100 percent of the Federal funds pro-
vided under the grant in the eighth and fol-
lowing years of grant administration. 
(2) REDUCED
MATCH
RATE.—A State that 
meets the requirements under subsection (b) may 
provide matching funds from non-Federal sources at 
a reduced rate. The full reduced matching funds 
rate shall be in an amount equal to— 
(A) 5 percent of the Federal funds pro-
vided under the grant in the first year of grant 
administration; 
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(B) 5 percent of the Federal funds pro-
vided under the grant in the second year of 
grant administration; 
(C) 10 percent of the Federal funds pro-
vided under the grant in the third year of grant 
administration; 
(D) 20 percent of the Federal funds pro-
vided under the grant in the fourth year of 
grant administration; 
(E) 30 percent of the Federal funds pro-
vided under the grant in the fifth year of grant 
administration; 
(F) 40 percent of the Federal funds pro-
vided under the grant in the sixth year of grant 
administration; 
(G) 50 percent of the Federal funds pro-
vided under the grant in the seventh year of 
grant administration; 
(H) 75 percent of the Federal funds pro-
vided under the grant in the eighth year of 
grant administration; and 
(I) 100 percent of the Federal funds pro-
vided under the grant in the ninth and fol-
lowing years of the grant administration. 
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(b) REDUCED MATCH RATE ELIGIBILITY.—A State 
that receives a grant under this subtitle may provide 
matching funds from non-Federal sources at the full re-
duced rate under subsection (a)(2) if the State— 
(1)(A) offers enrollment in high-quality pre-
kindergarten programs to not less than half of chil-
dren in the State who are— 
(i) age 4 on the eligibility determination 
date; and 
(ii) from families with incomes at or below 
200 percent of the poverty line; and 
(B) has a plan for continuing to expand access 
to high-quality prekindergarten programs for such 
children in the State; and 
(2) has a plan to expand access to high-quality 
prekindergarten programs to children from moderate 
income families whose income exceeds 200 percent of 
the poverty line. 
(c) NON-FEDERAL RESOURCES.— 
(1) IN CASH.—A State shall provide the match-
ing funds under this section in cash. 
(2) FUNDS TO BE CONSIDERED AS MATCHING 
FUNDS.—A State may include, as part of the State’s 
matching funds under this section, not more than 10 
percent of the amount of State funds designated for 
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State prekindergarten programs or to supplement 
Head Start programs under the Head Start Act (42 
U.S.C. 9831 et seq.) as of the date of enactment of 
this Act, but may not include any funds that are at-
tributed as matching funds, as part of a non-Federal 
share, or as a maintenance of effort requirement, for 
any other Federal program. 
(d) MAINTENANCE OF EFFORT.— 
(1) IN GENERAL.—If a State reduces its com-
bined fiscal effort per student or the aggregate ex-
penditures within the State to support early child-
hood education programs for any fiscal year that a 
State receives a grant authorized under this subtitle 
relative to the previous fiscal year, the Secretary 
shall reduce support for such State under this sub-
title by the same amount as the decline in State and 
local effort for such fiscal year. 
(2) WAIVER.—The Secretary may waive the re-
quirements of paragraph (1) if— 
(A) the Secretary determines that a waiver 
would be appropriate due to a precipitous de-
cline in the financial resources of a State as a 
result of unforeseen economic hardship or a 
natural disaster that has necessitated across- 
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the-board reductions in State services, including 
early childhood education programs; or 
(B) due to the circumstances of a State re-
quiring reductions in specific programs, includ-
ing early childhood education, if the State pre-
sents to the Secretary a justification and dem-
onstration why other programs could not be re-
duced and how early childhood programs in the 
State will not be disproportionately harmed by 
such State action. 
(e) SUPPLEMENT NOT SUPPLANT.—Grant funds re-
ceived under this title shall be used to supplement and 
not supplant other Federal, State, and local public funds 
expended on public prekindergarten programs in the 
State. 
SEC. 121. ELIGIBLE LOCAL ENTITY APPLICATIONS. 
(a) IN GENERAL.—An eligible local entity desiring to 
receive a subgrant under section 117(b) shall submit an 
application to the State, at such time, in such manner, 
and containing such information as the State may reason-
ably require. 
(b) CONTENTS.—Each application submitted under 
subsection (a) shall include the following: 
(1) PARENT AND FAMILY ENGAGEMENT.—A de-
scription of how the eligible local entity plans to en-
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gage the parents and families of the children such 
entity serves and ensure that parents and families of 
eligible children are aware of the services provided 
by the eligible local entity, which shall include a plan 
to— 
(A) carry out meaningful parent and fam-
ily engagement, through the implementation 
and replication of evidence-based or promising 
practices and strategies, which shall be coordi-
nated with parent and family engagement strat-
egies supported under the Individuals with Dis-
abilities Education Act (20 U.S.C. 1400 et seq.) 
and part A of title I and title V of the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 6311 et seq. and 7201 et seq.), if appli-
cable, to— 
(i) provide parents and family mem-
bers with the skills and opportunities nec-
essary to become full partners in their chil-
dren’s education, particularly the families 
of dual language learners and children 
with disabilities; 
(ii) improve child development; and 
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(iii) strengthen relationships among 
prekindergarten staff and parents and 
family members; and 
(B) perform community outreach to en-
courage families with eligible children to partici-
pate in the eligible local entity’s high-quality 
prekindergarten program, including— 
(i) homeless children; 
(ii) dual language learners; 
(iii) children in foster care; 
(iv) children with disabilities; and 
(v) migrant children. 
(2) COORDINATION
AND
ALIGNMENT.—A de-
scription of how the eligible local entity will— 
(A) coordinate, if applicable, the eligible 
local entity’s activities with— 
(i) Head Start agencies (consistent 
with section 642(e)(5) of the Head Start 
Act (42 U.S.C. 9837(e)(5))), if the local 
entity is not a Head Start agency; 
(ii) local educational agencies, if the 
eligible local entity is not a local edu-
cational agency; 
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lotter on DSKBCFDHB2PROD with BILLS
(iii) providers of services under part C 
of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1431 et seq.); 
(iv) programs carried out under sec-
tion 619 of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1419); and 
(v) if feasible, other entities carrying 
out early childhood education programs 
and services within the area served by the 
local educational agency; 
(B) if applicable, develop and implement a 
systematic procedure for transferring, with pa-
rental consent, early childhood education pro-
gram records for each participating child to the 
school in which such child will enroll in kinder-
garten; 
(C) develop a plan to promote continuity of 
developmentally appropriate instructional pro-
grams and shared expectations with local ele-
mentary schools for children’s learning and de-
velopment as children transition to kinder-
garten; 
(D) organize, if feasible, and participate in 
joint training, when available, including transi-
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tion-related training for school staff and early 
childhood education program staff; 
(E) establish comprehensive transition poli-
cies and procedures, with applicable elementary 
schools and principals, for the children served 
by the eligible local entity that support the 
school readiness of children transitioning to kin-
dergarten; 
(F) conduct outreach to parents, families, 
and elementary school teachers and principals 
to discuss the educational, developmental, and 
other needs of children entering kindergarten; 
(G) help parents, including parents of chil-
dren who are dual language learners, under-
stand and engage with the instructional and 
other services provided by the kindergarten in 
which such child will enroll after participation 
in a high-quality prekindergarten program; and 
(H) develop and implement a system to in-
crease program participation of underserved 
populations of eligible children, especially home-
less children, children eligible for a free or re-
duced-price lunch under the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et 
seq.), parents of children who are dual language 
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learners, and parents of children with disabil-
ities. 
(3) 
PROTECTIONS
FOR
SPECIAL
POPU-
LATIONS.—A description of how the eligible local en-
tity will meet the diverse needs of children in the 
community to be served, including children with dis-
abilities, children whose native language is not 
English, children with other special needs, children 
in the State foster care system, and homeless chil-
dren. Such description shall demonstrate, at a min-
imum, how the entity plans to— 
(A) ensure the eligible local entity’s high- 
quality prekindergarten program is accessible 
and appropriate for children with disabilities 
and dual language learners; 
(B) establish effective procedures for pro-
viding necessary early intervening services to 
children with disabilities prior to an eligibility 
determination by the State or local agency re-
sponsible for providing services under section 
619 or part C of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1419 and 1431 
et seq.); 
(C) establish effective procedures for time-
ly referral of children with disabilities to the 
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State or local agency described in subparagraph 
(B); 
(D) ensure that the eligible local entity’s 
high-quality prekindergarten program works 
with appropriate entities to address the elimi-
nation of barriers to immediate and continuous 
enrollment for homeless children; and 
(E) ensure access to and continuity of en-
rollment in high-quality prekindergarten pro-
grams for migratory children, if applicable, and 
homeless children, including through policies 
and procedures that require— 
(i) outreach to identify migratory chil-
dren and homeless children; 
(ii) immediate enrollment, including 
enrollment during the period of time when 
documents typically required for enroll-
ment, including health and immunization 
records, proof of eligibility, and other docu-
ments, are obtained; 
(iii) continuous enrollment and par-
ticipation in the same high-quality pre-
kindergarten program for a child, even if 
the child moves out of the program’s serv-
ice area, if that enrollment and participa-
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tion are in the child’s best interest, includ-
ing by providing transportation when nec-
essary; 
(iv) professional development for high- 
quality prekindergarten program staff re-
garding migratory children and homeless-
ness among families with young children; 
and 
(v) in serving homeless children, col-
laboration with local educational agency li-
aisons 
designated 
under 
section 
722(g)(1)(J)(ii) of the McKinney-Vento 
Homeless 
Assistance 
Act 
(42 
U.S.C. 
11432(g)(1)(J)(ii)), and local homeless 
service providers. 
(4) ACCESSIBLE COMPREHENSIVE SERVICES.— 
A description of how the eligible local entity plans to 
provide accessible comprehensive services, described 
in section 112(9)(I), to the children the eligible local 
entity serves. Such description shall provide informa-
tion on how the entity will— 
(A) conduct a data-driven community as-
sessment in coordination with members of the 
community, including parents and community 
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organizations, or use a recently conducted data- 
driven assessment, which— 
(i) may involve an external partner 
with expertise in conducting such needs 
analysis, to determine the most appro-
priate social or other support services to 
offer through the eligible local entity’s on- 
site comprehensive services to children who 
participate in high-quality prekindergarten 
programs; and 
(ii) shall consider the resources avail-
able at the school, local educational agen-
cy, and community levels to address the 
needs of the community and improve child 
outcomes; and 
(B) have a coordinated system to facilitate 
the screening, referral, and provision of services 
related to health, nutrition, mental health, dis-
ability, and family support for children served 
by the eligible local entity. 
(5) WORKFORCE.—A description of how the eli-
gible local entity plans to support the instructional 
staff of such entity’s high-quality prekindergarten 
program, which shall, at a minimum, include a plan 
to provide high-quality professional development, or 
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facilitate the provision of high-quality professional 
development through an external partner with exper-
tise and a demonstrated track record of success, 
based on scientifically valid research, that will im-
prove the knowledge and skills of high-quality pre-
kindergarten teachers and staff through activities, 
which may include— 
(A) acquiring content knowledge and learn-
ing teaching strategies needed to provide effec-
tive instruction that addresses the State’s early 
learning and development standards described 
under section 115(1); 
(B) enabling high-quality prekindergarten 
teachers and staff to pursue specialized training 
in early childhood development; 
(C) enabling high-quality prekindergarten 
teachers and staff to acquire the knowledge and 
skills to provide instruction and appropriate 
language and support services to increase the 
English language skills of dual language learn-
ers; 
(D) enabling high-quality prekindergarten 
teachers and staff to acquire the knowledge and 
skills to provide developmentally appropriate in-
struction for children with disabilities; 
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lotter on DSKBCFDHB2PROD with BILLS
(E) promoting classroom management; 
(F) providing high-quality induction and 
support for incoming high-quality prekinder-
garten teachers and staff in high-quality pre-
kindergarten programs, including through the 
use of mentoring programs that have a dem-
onstrated track record of success; 
(G) promoting the acquisition of relevant 
credentials, including in ways that support ca-
reer advancement through career ladders; and 
(H) enabling high-quality prekindergarten 
teachers and staff to acquire the knowledge and 
skills to provide culturally competent instruc-
tion for children from diverse backgrounds. 
SEC. 122. REQUIRED SUBGRANT ACTIVITIES. 
(a) IN GENERAL.—An eligible local entity that re-
ceives a subgrant under section 117(b) shall use subgrant 
funds to implement the elements of a high-quality pre-
kindergarten program for the children described in section 
117(b). 
(b) COORDINATION.— 
(1) LOCAL
EDUCATIONAL
AGENCY
PARTNER-
SHIPS WITH LOCAL EARLY CHILDHOOD EDUCATION 
PROGRAMS.—A local educational agency that re-
ceives a subgrant under this subtitle shall provide an 
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lotter on DSKBCFDHB2PROD with BILLS
assurance that the local educational agency will 
enter into strong partnerships with local early child-
hood education programs, including programs sup-
ported through the Head Start Act (42 U.S.C. 9831 
et seq.). 
(2) ELIGIBLE LOCAL ENTITIES THAT ARE NOT 
LOCAL EDUCATIONAL AGENCIES.—An eligible local 
entity that is not a local educational agency that re-
ceives a subgrant under this subtitle shall provide an 
assurance that such entity will enter into strong 
partnerships with local educational agencies. 
SEC. 123. REPORT AND EVALUATION. 
(a) IN GENERAL.—Each State that receives a grant 
under this subtitle shall prepare an annual report, in such 
manner and containing such information as the Secretary 
may reasonably require. 
(b) CONTENTS.—A report prepared under subsection 
(a) shall contain, at a minimum— 
(1) a description of the manner in which the 
State has used the funds made available through the 
grant and a report of the expenditures made with 
the funds; 
(2) a summary of the State’s progress toward 
providing access to high-quality prekindergarten pro-
grams for children eligible for such services, as de-
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termined by the State, from families with incomes at 
or below 200 percent of the poverty line, including 
the percentage of funds spent on children from fami-
lies with incomes— 
(A) at or below 100 percent of the poverty 
line; 
(B) at or below between 101 and 150 per-
cent of the poverty line; and 
(C) at or below between 151 and 200 per-
cent of the poverty line; 
(3) an evaluation of the State’s progress toward 
achieving the State’s performance targets, described 
in section 119; 
(4) data on the number of high-quality pre-
kindergarten program teachers and staff in the 
State (including teacher turnover rates and teacher 
compensation levels compared to teachers in elemen-
tary schools and secondary schools), according to the 
setting in which such teachers and staff work (which 
settings shall include, at a minimum, Head Start 
programs, public prekindergarten, and child care 
programs) who received training or education during 
the period of the grant and remained in the early 
childhood education program field; 
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lotter on DSKBCFDHB2PROD with BILLS
(5) data on the kindergarten readiness of chil-
dren in the State; 
(6) a description of the State’s progress in over-
coming barriers to the effective use of Federal, 
State, and local public funds and private funds, for 
early childhood education; 
(7) the number and percentage of children in 
the State participating in high-quality prekinder-
garten programs, disaggregated by race, ethnicity, 
family income, child age, disability, whether the chil-
dren are homeless children, and whether the children 
are dual language learners; 
(8) data on the availability, affordability, and 
quality of infant and toddler care in the State; 
(9) the number of operational minutes per week 
and per year for each eligible local entity that re-
ceives a subgrant; 
(10) the local educational agency and ZIP code 
in which each eligible local entity that receives a 
subgrant operates; 
(11) information, for each of the local edu-
cational agencies described in paragraph (10), on 
the percentage of the costs of the public early child-
hood education programs that is funded from Fed-
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lotter on DSKBCFDHB2PROD with BILLS
eral, from State, and from local sources, including 
the percentages from specific funding programs; 
(12) data on the number and percentage of 
children in the State participating in public kinder-
garten programs, disaggregated by race, family in-
come, child age, disability, whether the children are 
homeless children, and whether the children are dual 
language learners, with information on whether such 
programs are offered— 
(A) for a full-day; and 
(B) at no cost to families; and 
(13) data on the number of individuals in the 
State who are supported with scholarships, if appli-
cable, to meet the baccalaureate degree requirement 
for high-quality prekindergarten programs, as de-
fined in section 112. 
(c) SUBMISSION.—A State shall submit the annual 
report prepared under subsection (a), at the end of each 
fiscal year, to the Secretary, the Secretary of Health and 
Human Services, and the State Advisory Council on Early 
Childhood Education and Care. 
(d) COOPERATION.—An eligible local entity that re-
ceives a subgrant under this subtitle shall cooperate with 
all Federal and State efforts to evaluate the effectiveness 
of the program the entity implements with subgrant funds. 
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(e) NATIONAL REPORT.—The Secretary shall compile 
and summarize the annual State reports described under 
subsection (c) and shall prepare and submit an annual re-
port to Congress that includes a summary of such State 
reports. 
SEC. 124. PROHIBITION OF REQUIRED PARTICIPATION OR 
USE OF FUNDS FOR ASSESSMENTS. 
(a) PROHIBITION ON REQUIRED PARTICIPATION.—A 
State receiving a grant under this subtitle shall not re-
quire any child to participate in any Federal, State, local, 
or private early childhood education program, including a 
high-quality prekindergarten program. 
(b) PROHIBITION ON USE OF FUNDS FOR ASSESS-
MENT.—A State receiving a grant under this subtitle and 
an eligible local entity receiving a subgrant under this sub-
title shall not use any grant or subgrant funds to carry 
out any of the following activities: 
(1) An assessment that provides rewards or 
sanctions for individual children, teachers, or prin-
cipals. 
(2) An assessment that is used as the primary 
or sole method for assessing program effectiveness. 
(3) Evaluating children, other than for the pur-
poses of— 
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lotter on DSKBCFDHB2PROD with BILLS
(A) improving instruction or the classroom 
environment; 
(B) targeting professional development; 
(C) determining the need for health, men-
tal health, disability, or family support services; 
(D) program evaluation for the purposes of 
program improvement and parent information; 
and 
(E) improving parent and family engage-
ment. 
SEC. 125. COORDINATION WITH HEAD START PROGRAMS. 
(a) INCREASED ACCESS FOR YOUNGER CHILDREN.— 
Not later than 1 year after the date of enactment of this 
Act, the Secretary and the Secretary of Health and 
Human Services shall develop a process— 
(1) for use in the event that Head Start pro-
grams funded under the Head Start Act (42 U.S.C. 
9831 et seq.) operate in States or regions that have 
achieved sustained universal, voluntary access to 4- 
year-old children who reside within the State and 
who are from families with incomes at or below 200 
percent of the poverty line to high-quality prekinder-
garten programs; and 
(2) for how such Head Start programs will 
begin converting slots for children who are age 4 on 
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the eligibility determination date to children who are 
age 3 on the eligibility determination date, or, when 
appropriate, converting Head Start programs into 
Early Head Start programs to serve infants and tod-
dlers. 
(b) COMMUNITY NEED AND RESOURCES.—The proc-
ess described in subsection (a) shall— 
(1) be carried out on a case-by-case basis and 
shall ensure that sufficient resources and time are 
allocated for the development of such a process so 
that no child or cohort is excluded from currently 
available services; and 
(2) ensure that any conversion shall be based 
on community need and not on the aggregate num-
ber of children served in a State or region that has 
achieved sustained, universal, voluntary access to 
high-quality prekindergarten programs. 
(c) PUBLIC COMMENT AND NOTICE.—Not fewer than 
90 days after the development of the proposed process de-
scribed in subsection (a), the Secretary and the Secretary 
of Health and Human Services shall publish a notice de-
scribing such proposed process for conversion in the Fed-
eral Register providing at least 90 days for public com-
ment. The Secretaries shall review and consider public 
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comments prior to finalizing the process for conversion of 
Head Start slots and programs. 
(d) REPORTS
TO CONGRESS.—Concurrently with 
publishing a notice in the Federal Register as described 
in subsection (c), the Secretaries shall provide a report 
to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate that pro-
vides a detailed description of the proposed process de-
scribed in subsection (a), including a description of the 
degree to which Head Start programs are providing State- 
funded high-quality prekindergarten programs as a result 
of the grant opportunity provided under this subtitle in 
States where Head Start programs are eligible for conver-
sion described in subsection (a). 
SEC. 126. TECHNICAL ASSISTANCE IN PROGRAM ADMINIS-
TRATION. 
In providing technical assistance to carry out activi-
ties under this title, the Secretary shall coordinate that 
technical assistance, in appropriate cases, with technical 
assistance provided by the Secretary of Health and 
Human Services to carry out the programs authorized 
under the Head Start Act (42 U.S.C. 9831 et seq.), the 
Child Care and Development Block Grant Act of 1990 (42 
U.S.C. 9858 et seq.), and the maternal, infant and early 
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childhood home visiting programs assisted under section 
511 of the Social Security Act (42 U.S.C. 711). 
SEC. 127. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this subtitle— 
(1) $1,300,000,000 for fiscal year 2018; 
(2) $3,250,000,000 for fiscal year 2019; 
(3) $5,780,000,000 for fiscal year 2020; 
(4) $7,580,000,000 for fiscal year 2021; 
(5) $8,960,000,000 for fiscal year 2022; and 
(6) such sums as may be necessary for each of 
fiscal years 2023 through 2027. 
Subtitle B—Prekindergarten 
Development Grants 
SEC. 151. PREKINDERGARTEN DEVELOPMENT GRANTS. 
(a) IN GENERAL.—From the amounts appropriated 
under subsection (f), the Secretary of Education, in con-
sultation with the Secretary of Health and Human Serv-
ices, shall award competitive grants to States that wish 
to increase the capacity and build the infrastructure with-
in the State to offer high-quality prekindergarten pro-
grams. 
(b) ELIGIBILITY.—A State that is not receiving funds 
under section 115 may compete for grant funds under this 
subtitle if the State provides an assurance that the State 
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will, through the support of grant funds awarded under 
this subtitle, meet the eligibility requirements of section 
115 not later than 3 years after the date the State first 
receives grant funds under this subtitle. 
(c) GRANTS.— 
(1) DURATION.—The Secretary shall award 
grants to States under this subtitle for a period of 
not more than 3 years and such grants shall not be 
renewed. 
(2) AUTHORITY TO SUBGRANT.— 
(A) IN
GENERAL.—A State receiving a 
grant under this subtitle may use the grant 
funds to make subgrants to eligible local enti-
ties (defined in section 112(7)) to carry out ac-
tivities under the grant. 
(B) ELIGIBLE LOCAL ENTITIES.—An eligi-
ble local entity receiving a subgrant under sub-
paragraph (A) shall comply with the require-
ments for States receiving a grant under this 
subtitle, as appropriate. 
(d) APPLICATION.— 
(1) IN GENERAL.—A Governor of a State that 
desires to receive a grant under this subtitle shall 
submit an application to the Secretary of Education 
at such time, in such manner, and accompanied by 
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such information as the Secretary may reasonably 
require, including a description of how the State 
plans to become eligible for grants under section 115 
by not later than 3 years after the date the State 
first receives grant funds under this subtitle. 
(2) DEVELOPMENT OF APPLICATION.—In devel-
oping an application for a grant under this subtitle, 
a Governor of a State shall consult with the State 
Advisory Council on Early Childhood Education and 
Care, and incorporate their recommendations, where 
applicable. 
(e) MATCHING REQUIREMENT.— 
(1) IN GENERAL.—To be eligible to receive a 
grant under this subtitle, a State shall contribute for 
the activities for which the grant was awarded non- 
Federal matching funds in an amount equal to not 
less than 20 percent of the amount of the grant. 
(2) NON-FEDERAL FUNDS.—To satisfy the re-
quirement of paragraph (1), a State may use— 
(A) cash; or 
(B) an in-kind contribution. 
(3) FINANCIAL HARDSHIP WAIVER.—The Sec-
retary may waive paragraph (1) or reduce the 
amount of matching funds required under that para-
graph for a State that has submitted an application 
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for a grant under this subtitle if the State dem-
onstrates, in the application, a need for such a waiv-
er or reduction due to extreme financial hardship, as 
determined by the Secretary of Education. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this sub-
title— 
(1) $750,000,000 for fiscal year 2018; and 
(2) such sums as may be necessary for each of 
fiscal years 2019 through 2027. 
TITLE II—YOUTH PROMISE/FED-
ERAL 
COORDINATION 
OF 
LOCAL 
AND 
TRIBAL 
JUVE-
NILE JUSTICE INFORMATION 
AND EFFORTS 
SEC. 201. PROMISE ADVISORY PANEL. 
(a) ORGANIZATION
OF STATE ADVISORY GROUP 
MEMBER REPRESENTATIVES.—Section 223(f) of the Ju-
venile Justice and Delinquency Prevention Act of 1974 
(42 U.S.C. 5633(f)) is amended— 
(1) in paragraph (1), by striking ‘‘an eligible 
organization composed of member representatives of 
the State advisory groups appointed under sub-
section (a)(3)’’ and inserting ‘‘a nonpartisan, non-
profit organization that is described in section 
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501(c)(3) of the Internal Revenue Code of 1986,’’; 
and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) ASSISTANCE.—To be eligible to receive 
such assistance, such organization shall— 
‘‘(A) be governed by individuals who— 
‘‘(i) have been appointed by a chief 
executive of a State to serve as a State ad-
visory group member under subsection 
(a)(3); and 
‘‘(ii) are elected to serve as a gov-
erning officer of such organization by a 
majority of the Chairs (or Chair-designees) 
of all such State advisory groups; 
‘‘(B) include member representatives from 
a majority of such State advisory groups, who 
shall be representative of regionally and demo-
graphically diverse States and jurisdictions; 
‘‘(C) annually seek appointments by the 
chief executive of each State of one State advi-
sory group member and one alternate State ad-
visory group member from each such State to 
implement the advisory functions specified in 
clauses (iv) and (v) of subparagraph (D), in-
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cluding serving on the PROMISE Advisory 
Panel, and make a record of any such appoint-
ments available to the public; and 
‘‘(D) agree to carry out activities that in-
clude— 
‘‘(i) conducting an annual conference 
of such member representatives for pur-
poses relating to the activities of such 
State advisory groups; 
‘‘(ii) disseminating information, data, 
standards, advanced techniques, and pro-
gram models; 
‘‘(iii) reviewing Federal policies re-
garding juvenile justice and delinquency 
prevention; 
‘‘(iv) advising the Administrator with 
respect to particular functions or aspects 
of the work of the Office, and appointing 
a representative, diverse group of members 
of such organization under subparagraph 
(C) to serve as an advisory panel of State 
juvenile justice advisors (referred to as the 
‘PROMISE Advisory Panel’) to carry out 
the functions specified in subsection (g); 
and 
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‘‘(v) advising the President and Con-
gress with regard to State perspectives on 
the operation of the Office and Federal 
legislation pertaining to juvenile justice 
and delinquency prevention.’’. 
(b) PROMISE ADVISORY PANEL.—Section 223 of 
the Juvenile Justice and Delinquency Prevention Act of 
1974 (42 U.S.C. 5633) is further amended by adding at 
the end the following new subsection: 
‘‘(g) PROMISE ADVISORY PANEL.— 
‘‘(1) FUNCTIONS.—The PROMISE Advisory 
Panel required under subsection (f)(2)(D) shall— 
‘‘(A) assess successful evidence-based and 
promising practices related to juvenile delin-
quency and criminal street gang activity preven-
tion and intervention carried out by PROMISE 
Coordinating Councils under section 511 of title 
V of division A of the Pathways Out of Poverty 
Act of 2017; 
‘‘(B) provide the Administrator with a list 
of individuals and organizations with experience 
in administering or evaluating practices that 
serve youth involved in, or at risk of involve-
ment in, juvenile delinquency and criminal 
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street gang activity, from which the Adminis-
trator shall select individuals who shall— 
‘‘(i) provide to the Administrator peer 
reviews of applications submitted by units 
of local government and Indian tribes pur-
suant to title V of division A of the Path-
ways Out of Poverty Act of 2017, to en-
sure that such applications demonstrate a 
clear plan to— 
‘‘(I) serve youth as part of an en-
tire family unit; and 
‘‘(II) coordinate the delivery of 
service to youth among agencies; and 
‘‘(ii) advise the Administrator with re-
spect to the award and allocation of 
PROMISE Planning grants to local and 
tribal governments that develop PROMISE 
Coordinating Councils, and of PROMISE 
Implementation grants to such PROMISE 
Coordinating Councils, pursuant to title V 
of division A of the Pathways Out of Pov-
erty Act of 2017; and 
‘‘(C) develop performance standards to be 
used to evaluate programs and activities carried 
out with grants under title V of division A of 
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the Pathways Out of Poverty Act of 2017, in-
cluding the evaluation of changes achieved as a 
result of such programs and activities related to 
decreases in juvenile delinquency and criminal 
street gang activity, including— 
‘‘(i) prevention of involvement by at- 
risk youth in juvenile delinquency or crimi-
nal street gang activity; 
‘‘(ii) diversion of youth with a high 
risk of continuing involvement in juvenile 
delinquency or criminal street gang activ-
ity; and 
‘‘(iii) financial savings from deferred 
or eliminated costs, or other benefits, as a 
result of such programs and activities, and 
the reinvestment by the unit or tribe of 
any such savings. 
‘‘(2) ANNUAL
REPORT.—Not later than 18 
months after the date of the effective date of this 
subsection, and annually thereafter, the PROMISE 
Advisory Panel shall prepare a report containing the 
findings and determinations under paragraph (1)(A) 
and shall submit such report to Congress, the Presi-
dent, the Attorney General, and the chief executive 
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and chief law enforcement officer of each State, unit 
of local government, and Indian tribe.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
299(a)(1) of the Juvenile Justice and Delinquency Preven-
tion Act of 1974 (42 U.S.C. 5671(a)(1)) is amended to 
read as follows: 
‘‘(1) There are authorized to be appropriated 
such sums as may be necessary to carry out this 
title for each of the fiscal years 2015 through 
2017.’’. 
SEC. 202. GEOGRAPHIC ASSESSMENT OF RESOURCE ALLO-
CATION. 
(a) GRANT FOR COLLECTION OF DATA TO DETER-
MINE NEED.—Subject to the availability of appropria-
tions, the Administrator of the Office of Juvenile Justice 
and Delinquency Prevention shall award a grant, on a 
competitive basis, to an organization to— 
(1) collect and analyze data related to the exist-
ing juvenile delinquency and criminal street gang ac-
tivity prevention and intervention needs and re-
sources in each designated geographic area; 
(2) use the data collected and analyzed under 
paragraph (1) to compile a list of designated geo-
graphic areas that have the most need of resources, 
based on such data, to carry out juvenile delin-
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quency and criminal street gang activity prevention 
and intervention; 
(3) use the data collected and analyzed under 
paragraph (1) to rank the areas listed under para-
graph (2) in descending order by the amount of need 
for resources to carry out juvenile delinquency and 
criminal street gang activity prevention and inter-
vention, ranking the area with the greatest need for 
such resources highest; and 
(4) periodically update the list and rankings 
under paragraph (3) as the Administrator deter-
mines to be appropriate. 
(b) DATA SOURCES.—In compiling such list and de-
termining such rankings, the organization shall collect and 
analyze data relating to juvenile delinquency and criminal 
street gang activity prevention and intervention— 
(1) using the geographic information system 
and Web-based mapping application known as the 
Socioeconomic Mapping and Resource Topography 
(SMART) system; 
(2) from the Department of Health and Human 
Services, the Department of Labor, the Department 
of Housing and Urban Development, and the De-
partment of Education; and 
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(3) from the annual KIDS Count Data Book 
and other data made available by the KIDS Count 
initiative of the Annie E. Casey Foundation. 
(c) USE OF DATA BY THE ADMINISTRATOR.—The list 
and rankings required by this section shall be provided 
to the Administrator to be used to provide funds under 
this section in the most strategic and effective manner to 
ensure that resources and services are provided to youth 
in the communities with the greatest need for such re-
sources and services. 
(d) LIMITATION ON USE OF COLLECTED DATA.— 
The information collected and analyzed under this section 
may not be used for any purpose other than to carry out 
the purposes of this section. Such information may not 
be used for any purpose related to the investigation or 
prosecution of any person, or for profiling of individuals 
based on race, ethnicity, socio-economic status, or any 
other characteristic. 
(e) AUTHORIZATION
AND LIMITATION
OF APPRO-
PRIATIONS.—Of the amount appropriated for fiscal year 
2018 to carry out this section and subtitle A of title V 
of this Act, not more than 1 percent of such amount, or 
$1,000,000, whichever is less, shall be available to carry 
out this section. 
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TITLE III—PROMISE GRANTS 
SEC. 301. PURPOSES. 
The purposes of the grant programs established 
under this title are to— 
(1) enable local and tribal communities to as-
sess the unmet needs of youth who are involved in, 
or are at risk of involvement in, juvenile delinquency 
or criminal street gangs; 
(2) develop plans appropriate for a community 
to address those unmet needs with juvenile delin-
quency and gang prevention and intervention prac-
tices; and 
(3) implement and evaluate such plans in a 
manner consistent with this title. 
SEC. 302. DEFINITIONS. 
In this title: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Office of Ju-
venile Justice and Delinquency Prevention. 
(2) 
COMMUNITY.—The 
term 
‘‘community’’ 
means a unit of local government or an Indian tribe, 
or part of such a unit or tribe, as determined by 
such a unit or tribe for the purpose of applying for 
a grant under this title. 
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(3) DESIGNATED
GEOGRAPHIC
AREA.—The 
term ‘‘designated geographic area’’ means a 5-digit 
postal ZIP Code assigned to a geographic area by 
the United States Postal Service. 
(4) EVIDENCE-BASED.— 
(A) IN
GENERAL.—The term ‘‘evidence- 
based’’, when used with respect to a practice re-
lating to juvenile delinquency and criminal 
street gang activity prevention and intervention, 
means a practice (including a service, program, 
activity, intervention, technology, or strategy) 
for which the Administrator has determined— 
(i) causal evidence documents a rela-
tionship between the practice and its in-
tended outcome, based on measures of the 
direction and size of a change, and the ex-
tent to which a change may be attributed 
to the practice; and 
(ii) the use of scientific methods rules 
out, to the extent possible, alternative ex-
planations for the documented change. 
(B) SCIENTIFIC METHODS.—For the pur-
poses of subparagraph (A), the term ‘‘scientific 
methods’’ means— 
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(i) evaluation by an experimental trial, 
in which participants are randomly as-
signed to participate in the practice that is 
subject to such trial; or 
(ii) evaluation by a quasi-experimental 
trial, in which the outcomes for partici-
pants are compared with outcomes for a 
control group that is made up of individ-
uals who are similar to such participants. 
(5) INTERVENTION.—The term ‘‘intervention’’ 
means the provision of programs and services that 
are supported by research, are evidence-based or 
promising practices, and are provided to youth who 
are involved in, or who are identified by evidence- 
based risk assessment methods as being at high risk 
of continued involvement in, juvenile delinquency or 
criminal street gangs, as a result of indications that 
demonstrate involvement with problems such as tru-
ancy, substance abuse, mental health treatment 
needs, or siblings who have had involvement with ju-
venile or criminal justice systems. 
(6) JUVENILE
DELINQUENCY
AND
CRIMINAL 
STREET
GANG
ACTIVITY
PREVENTION.—The term 
‘‘juvenile delinquency and criminal street gang activ-
ity prevention’’ means the provision of programs and 
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resources to children and families who have not yet 
had substantial contact with criminal justice or juve-
nile justice systems, that— 
(A) are designed to reduce potential juve-
nile delinquency and criminal street gang activ-
ity risks; and 
(B) are evidence-based or promising edu-
cational, health, mental health, school-based, 
community-based, faith-based, parenting, job 
training, social opportunities and experiences, 
or other programs, for youth and their families, 
that have been demonstrated to be effective in 
reducing juvenile delinquency and criminal 
street gang activity risks. 
(7) PROMISING.—The term ‘‘promising’’, when 
used with respect to a practice relating to juvenile 
delinquency and criminal street gang activity preven-
tion and intervention, means a practice (including a 
service, program, activity, intervention, technology, 
or strategy) that, based on statistical analyses or a 
theory of change, the Administrator has deter-
mined— 
(A) has outcomes from an evaluation that 
demonstrate such practice reduces juvenile de-
linquency and criminal street gang activity; and 
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(B) is part of a study being conducted to 
determine if such a practice is evidence-based. 
(8) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States 
Virgin Islands, American Samoa, Guam, the North-
ern Mariana Islands, and any other territories or 
possessions of the United States. 
(9) THEORY OF CHANGE.—The term ‘‘theory of 
change’’ means a program planning strategy ap-
proved by the Administrator that outlines the types 
of interventions and outcomes essential to achieving 
a set of program goals. 
(10) YOUTH.—The term ‘‘youth’’ means— 
(A) an individual who is 18 years of age or 
younger; or 
(B) in any State in which the maximum 
age at which the juvenile justice system of such 
State has jurisdiction over individuals exceeds 
18 years of age, an individual who is such max-
imum age or younger. 
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Subtitle A—PROMISE Assessment 
and Planning Grants 
SEC. 310. PROMISE ASSESSMENT AND PLANNING GRANTS 
AUTHORIZED. 
(a) GRANTS AUTHORIZED.—The Administrator is 
authorized to award grants to units of local government 
and Indian tribes to assist PROMISE Coordinating Coun-
cils with planning and assessing evidence-based and prom-
ising practices relating to juvenile delinquency and crimi-
nal street gang activity prevention and intervention, espe-
cially for youth who are involved in, or who are at risk 
of involvement in, juvenile delinquency and criminal street 
gang activity. Such PROMISE Coordinating Councils 
shall— 
(1) conduct an objective needs and strengths 
assessment in accordance with section 512; and 
(2) develop a PROMISE Plan in accordance 
with section 513, based on the assessment conducted 
in accordance with section 512. 
(b) GRANT
DURATION, AMOUNT, AND
ALLOCA-
TION.— 
(1) DURATION.—A grant awarded under this 
section shall be for a period not to exceed one year. 
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(2) 
MAXIMUM
GRANT
AMOUNT.—A 
grant 
awarded under this section shall not exceed 
$300,000. 
(c) ALLOCATION.— 
(1) MINIMUM
ALLOCATION.—Subject to the 
availability of appropriations, the Administrator 
shall ensure that the total funds allocated under this 
section to units of local governments and Indian 
tribes in a State shall not be less than $1,000,000. 
(2) RATABLE
REDUCTION.—If the amount 
made available for grants under this section for any 
fiscal year is less than the amount required to pro-
vide the minimum allocation of funds under para-
graph (1) to units of local government and Indian 
tribes in each State, then the amount of such min-
imum allocation shall be ratably reduced. 
SEC. 311. PROMISE COORDINATING COUNCILS. 
To be eligible to receive a grant under this subtitle, 
a unit of local government or an Indian tribe shall estab-
lish a PROMISE Coordinating Council for each commu-
nity of such unit or tribe, respectively, for which such unit 
or tribe is applying for a grant under this subtitle. Each 
such community shall include one or more designated geo-
graphic areas identified on the list required under section 
402(a)(2). The members of such a PROMISE Coordi-
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nating Council shall be representatives of public and pri-
vate sector entities and individuals that— 
(1) shall include, to the extent possible, at least 
one representative from each of the following: 
(A) the local chief executive’s office; 
(B) a local educational agency; 
(C) a local health agency or provider; 
(D) a local mental health agency or pro-
vider, unless the representative under subpara-
graph (C) also meets the requirements of this 
subparagraph; 
(E) a local public housing agency; 
(F) a local law enforcement agency; 
(G) a local child welfare agency; 
(H) a local juvenile court; 
(I) a local juvenile prosecutor’s office; 
(J) a private juvenile residential care enti-
ty; 
(K) a local juvenile public defender’s office; 
(L) a State juvenile correctional entity; 
(M) a local business community represent-
ative; and 
(N) a local faith-based community rep-
resentative; 
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(2) shall include two representatives from each 
of the following: 
(A) parents who have minor children, and 
who have an interest in the local juvenile or 
criminal justice systems; 
(B) youth between the ages of 15 and 24 
who reside in the jurisdiction of the unit or 
tribe; and 
(C) members from nonprofit community- 
based organizations that provide effective delin-
quency prevention and intervention to youth in 
the jurisdiction of the unit or tribe; and 
(3) may include other members, as the unit or 
tribe determines to be appropriate. 
SEC. 312. NEEDS AND STRENGTHS ASSESSMENT. 
(a) ASSESSMENT.—Each PROMISE Coordinating 
Council receiving funds from a unit of local government 
or Indian tribe under this subtitle shall conduct an objec-
tive strengths and needs assessment of the resources of 
the community for which such PROMISE Coordinating 
Council was established, to identify the unmet needs of 
youth in the community with respect to evidence-based 
and promising practices related to juvenile delinquency 
and criminal street gang activity prevention and interven-
tion. Such assessment shall include, with respect to the 
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community for which such PROMISE Coordinating Coun-
cil was established— 
(1) the number of youth who are at risk of in-
volvement in juvenile delinquency or street gang ac-
tivity; 
(2) the number of youth who are involved in ju-
venile delinquency or criminal street gang activity, 
including the number of such youth who are at high 
risk of continued involvement; 
(3) youth unemployment rates during the sum-
mer; 
(4) the number of individuals on public finan-
cial assistance (including a breakdown of the num-
bers of men, women, and children on such assist-
ance); 
(5) the estimated number of youth who are 
chronically truant; 
(6) the number of youth who have dropped out 
of school in the previous year; 
(7) for the year before such assessment, the es-
timated total amount expended (by the community 
and other entities) for the incarceration of offenders 
who were convicted or adjudicated delinquent for an 
offense that was committed in such community, in-
cluding amounts expended for the incarceration of 
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offenders in prisons, jails, and juvenile facilities that 
are located in the United States but are not located 
in such community; 
(8) a comparison of the amount under para-
graph (7) with an estimation of the amount that 
would be expended for the incarceration of offenders 
described in such paragraph if the number of offend-
ers described in such paragraph was equal to the na-
tional average incarceration rate per 100,000 popu-
lation; 
(9) a description of evidence-based and prom-
ising practices related to juvenile delinquency and 
criminal street gang activity prevention available for 
youth in the community, including school-based pro-
grams, after school programs (particularly programs 
that have activities available for youth between 3 
p.m. and 6 p.m. in the afternoon), weekend activities 
and programs, youth mentoring programs, faith and 
community-based programs, summer activities, and 
summer jobs, if any; and 
(10) a description of evidence-based and prom-
ising intervention practices available for youth in the 
community. 
(b) LIMITATION ON USE OF ASSESSMENT INFORMA-
TION.—Information gathered pursuant to this section may 
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be used for the sole purpose of developing a PROMISE 
Plan in accordance with this subtitle. 
SEC. 313. PROMISE PLAN COMPONENTS. 
(a) IN GENERAL.—Each PROMISE Coordinating 
Council receiving funds from a unit of local government 
or Indian tribe under this subtitle shall develop a PROM-
ISE Plan to provide for the coordination of, and, as appro-
priate, to support the delivery of, evidence-based and 
promising practices related to juvenile delinquency and 
criminal street gang activity prevention and intervention 
to youth and families who reside in the community for 
which such PROMISE Coordinating Council was estab-
lished. Such a PROMISE Plan shall— 
(1) include the strategy by which the PROM-
ISE Coordinating Council plans to prioritize and al-
locate resources and services toward the unmet 
needs of youth in the community, consistent with the 
needs and available resources of communities with 
the greatest need for assistance, as determined pur-
suant to section 402; 
(2) include a combination of evidence-based and 
promising prevention and intervention practices that 
are responsive to the needs of the community; and 
(3) ensure that cultural and linguistic needs of 
the community are met. 
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(b) MANDATORY COMPONENTS.—Each PROMISE 
Plan shall— 
(1) include a plan to connect youth identified in 
paragraphs (1) and (2) of section 512(a) to evi-
dence-based and promising practices related to juve-
nile delinquency and criminal street gang activity 
prevention and intervention; 
(2) identify the amount or percentage of local 
funds that are available to the PROMISE Coordi-
nating Council to carry out the PROMISE Plan; 
(3) provide strategies to improve indigent de-
fense delivery systems, with particular attention 
given to groups of children who are disproportion-
ately represented in the State delinquency system 
and Federal criminal justice system, as compared to 
the representation of such groups in the general 
population of the State; 
(4) provide for training (which complies with 
the American Bar Association Juvenile Justice 
Standards for the representation and care of youth 
in the juvenile justice system) of prosecutors, de-
fenders, probation officers, judges and other court 
personnel related to issues concerning the develop-
mental needs, challenges, and potential of youth in 
the juvenile justice system (including training re-
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lated to adolescent development and mental health 
issues, and the expected impact of evidence-based 
practices and cost reduction strategies); 
(5) ensure that the number of youth involved in 
the juvenile delinquency and criminal justice systems 
does not increase as a result of the activities under-
taken with the funds provided under this subtitle; 
(6) describe the coordinated strategy that will 
be used by the PROMISE Coordinating Council to 
provide at-risk youth with evidence-based and prom-
ising practices related to juvenile delinquency and 
criminal street gang activity prevention and inter-
vention; 
(7) propose the performance evaluation process 
to be used to carry out section 530(d), which shall 
include performance measures to assess efforts to 
address the unmet needs of youth in the community 
with evidence-based and promising practices related 
to juvenile delinquency and criminal street gang ac-
tivity prevention and intervention; and 
(8) identify the research partner the PROMISE 
Coordinating Council will use to obtain information 
on evidence-based and promising practices related to 
juvenile delinquency and criminal street gang activ-
ity prevention and intervention, and for the evalua-
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tion under section 530(d) of the results of the activi-
ties carried out with funds under this subtitle. 
(c) VOLUNTARY COMPONENTS.—In addition to the 
components under subsection (b), a PROMISE Plan may 
include evidence-based or promising practices related to 
juvenile delinquency and criminal street gang activity pre-
vention and intervention in the following categories: 
(1) Early childhood development services (such 
as pre-natal and neo-natal health services), early 
childhood prevention, voluntary home visiting pro-
grams, nurse-family partnership programs, par-
enting and healthy relationship skills training, child 
abuse prevention programs, Early Head Start, and 
Head Start. 
(2) Child protection and safety services (such as 
foster care and adoption assistance programs), fam-
ily stabilization programs, child welfare services, and 
family violence intervention programs. 
(3) Youth and adolescent development services, 
including job training and apprenticeship programs, 
job placement and retention training, education and 
after school programs (such as school programs with 
shared governance by students, teachers, and par-
ents, and activities for youth between the hours of 
3 p.m. and 6 p.m. in the afternoon), mentoring pro-
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grams, conflict resolution skills training, sports, 
arts, life skills, employment and recreation pro-
grams, summer jobs, and summer recreation pro-
grams, and alternative school resources for youth 
who have dropped out of school or demonstrate 
chronic truancy. 
(4) Health and mental health services, includ-
ing cognitive behavioral therapy, play therapy, and 
peer mentoring and counseling. 
(5) Substance abuse counseling and treatment 
services, including harm-reduction strategies. 
(6) Emergency, transitional, and permanent 
housing assistance (such as safe shelter and housing 
for runaway and homeless youth). 
(7) Targeted gang prevention, intervention, and 
exit services such as tattoo removal, successful mod-
els of anti-gang crime outreach programs (such as 
‘‘street worker’’ programs), and other criminal street 
gang truce or peacemaking activities. 
(8) Training and education programs for preg-
nant teens and teen parents. 
(9) Alternatives to detention and confinement 
programs (such as mandated participation in com-
munity service, restitution, counseling, and intensive 
individual and family therapeutic approaches). 
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(10) Pre-release, post-release, and reentry serv-
ices to assist detained and incarcerated youth with 
transitioning back into and reentering the commu-
nity. 
SEC. 314. AUTHORIZATION OF APPROPRIATIONS. 
Subject to the limitation under section 402(e), there 
are authorized to be appropriated for fiscal year 2018, 
such sums as may be necessary to carry out this subtitle 
and section 402. 
Subtitle B—PROMISE 
Implementation Grants 
SEC. 320. PROMISE IMPLEMENTATION GRANTS AUTHOR-
IZED. 
(a) PROMISE IMPLEMENTATION GRANTS AUTHOR-
IZED.—The Administrator of the Office of Juvenile Jus-
tice and Delinquency Prevention is authorized to award 
grants to units of local government and Indian tribes to 
assist PROMISE Coordinating Councils with imple-
menting PROMISE Plans developed pursuant to subtitle 
A. 
(b) GRANT DURATION AND AMOUNT.— 
(1) DURATION.—A grant awarded under this 
subtitle shall be for a three-year period. 
(2) 
MAXIMUM
GRANT
AMOUNT.—A 
grant 
awarded under this subtitle shall not be for more 
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than $10,000,000 per year for each year of the 
grant period. 
(c) NON-FEDERAL FUNDS REQUIRED.—For each fis-
cal year during the three-year grant period for a grant 
under this subtitle, each unit of local government or In-
dian tribe receiving such a grant for a PROMISE Coordi-
nating Council shall provide, from non-Federal funds, in 
cash or in-kind, 25 percent of the costs of the activities 
carried out with such grant. 
(d) EVALUATION.—Of any funds provided to a unit 
of local government or an Indian tribe for a grant under 
this subtitle, not more than $100,000 shall be used to pro-
vide a contract to a competitively selected organization to 
assess the progress of the unit or tribe in addressing the 
unmet needs of youth in the community, in accordance 
with the performance measures under section 513(b)(7). 
SEC. 321. PROMISE IMPLEMENTATION GRANT APPLICA-
TION REQUIREMENTS. 
(a) APPLICATION REQUIRED.—To be eligible to re-
ceive a PROMISE Implementation grant under this sub-
title, a unit of local government or Indian tribe that re-
ceived a PROMISE Assessment and Planning grant under 
subtitle A shall submit an application to the Administrator 
of the Office of Juvenile Justice and Delinquency Preven-
tion not later than one year after the date such unit of 
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local government or Indian tribe was awarded such grant 
under subtitle A, in such manner, and accompanied by 
such information, as the Administrator, after consultation 
with the organization under section 223(f)(1) of the Juve-
nile Justice and Delinquency Prevention Act of 1974 (42 
U.S.C. 5633(f)(1)), may require. 
(b) CONTENTS OF APPLICATION.—Each application 
submitted under subsection (a) shall— 
(1) identify potential savings from criminal jus-
tice costs, public assistance costs, and other costs 
avoided by utilizing evidence-based and promising 
practices related to juvenile delinquency and crimi-
nal street gang activity prevention and intervention; 
(2) document— 
(A) investment in evidence-based and 
promising practices related to juvenile delin-
quency and criminal street gang activity preven-
tion and intervention to be provided by the unit 
of local government or Indian tribe; 
(B) the activities to be undertaken with 
the grants funds; 
(C) any expected efficiencies in the juvenile 
justice or other local systems to be attained as 
a result of implementation of the programs 
funded by the grant; and 
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100 
(D) outcomes from such activities, in 
terms of the expected numbers related to re-
duced criminal activity; 
(3) describe how savings sustained from invest-
ment in prevention and intervention practices will be 
reinvested in the continuing implementation of the 
PROMISE Plan; and 
(4) provide an assurance that the local fiscal 
contribution with respect to evidence-based and 
promising practices related to juvenile delinquency 
and criminal street gang activity prevention and 
intervention in the community for which the PROM-
ISE Coordinating Council was established for each 
year of the grant period will not be less than the 
local fiscal contribution with respect to such prac-
tices in the community for the year preceding the 
first year of the grant period. 
SEC. 322. GRANT AWARD GUIDELINES. 
(a) SELECTION AND DISTRIBUTION.—Grants award-
ed under this subtitle shall be awarded on a competitive 
basis. The Administrator shall— 
(1) take such steps as may be necessary to en-
sure that grants are awarded to units of local gov-
ernments and Indian tribes in areas with the highest 
concentrations of youth who are— 
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101 
(A) at risk of involvement in juvenile delin-
quency or criminal street gang activity; and 
(B) involved in juvenile delinquency or 
street gang activity and who are at high risk of 
continued involvement; and 
(2) give consideration to the need for grants to 
be awarded to units of local governments and Indian 
tribes in each region of the United States, and 
among urban, suburban, and rural areas. 
(b) EXTENSION OF GRANT AWARD.—The Adminis-
trator may extend the grant period under section 
530(b)(1) for a PROMISE Implementation grant to a unit 
of local government or an Indian tribe, in accordance with 
regulations issued by the Administrator. 
(c) RENEWAL OF GRANT AWARD.—Subject to the 
availability of appropriations, the Administrator may 
renew a PROMISE Implementation grant to a unit of 
local government or an Indian tribe to provide such unit 
or tribe with additional funds to continue implementation 
of a PROMISE Plan. Such a renewal— 
(1) shall be initiated by an application for re-
newal from a unit of local government or an Indian 
tribe; 
(2) shall be carried out in accordance with reg-
ulations issued by the Administrator; and 
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102 
(3) shall not be granted unless the Adminis-
trator determines such a renewal to be appropriate 
based on the results of the evaluation conducted 
under section 523(a) with respect to the community 
of such unit or tribe for which a PROMISE Coordi-
nating Council was established, and for which such 
unit or tribe is applying for renewal. 
SEC. 323. REPORTS. 
Not later than one year after the end of the grant 
period for which a unit of local government or an Indian 
tribe receives a PROMISE Implementation grant, and an-
nually thereafter for as long as such unit or tribe con-
tinues to receive Federal funding for a PROMISE Coordi-
nating Council, such unit or tribe shall report to the Ad-
ministrator regarding the use of Federal funds to imple-
ment the PROMISE Plan developed under subtitle A. 
SEC. 324. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this subtitle such sums as may be necessary for each of 
the fiscal years 2018 through 2020. 
Subtitle C—General PROMISE 
Grant Provisions 
SEC. 330. NONSUPPLANTING CLAUSE. 
A unit of local government or Indian tribe receiving 
a grant under this title shall use such grant only to supple-
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103 
ment, and not supplant, the amount of funds that, in the 
absence of such grant, would be available to address the 
needs of youth in the community with respect to evidence- 
based and promising practices related to juvenile delin-
quency and criminal street gang activity prevention and 
intervention. 
SEC. 331. GRANT APPLICATION REVIEW PANEL. 
The Administrator of the Office of Juvenile Justice 
and Delinquency Prevention, in conjunction with the 
PROMISE Advisory Panel, shall establish and utilize a 
transparent, reliable, and valid system for evaluating ap-
plications for PROMISE Assessment and Planning grants 
and for PROMISE Implementation grants, and shall de-
termine which applicants meet the criteria for funding, 
based primarily on a determination of greatest need (in 
accordance with section 402), with due consideration to 
other enumerated factors and the indicated ability of the 
applicant to successfully implement the program described 
in the application. 
SEC. 332. EVALUATION OF PROMISE GRANT PROGRAMS. 
Subject to the availability of appropriations under 
this title, the Administrator shall, in consultation with the 
organization provided assistance under section 223(f)(1) 
of the Juvenile Justice and Delinquency Prevention Act 
of 1974 (42 U.S.C. 5633(f)(1)), provide for an evaluation 
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104 
of the programs and activities carried out with grants 
under this title. In carrying out this section, the Adminis-
trator shall— 
(1) award grants to institutions of higher edu-
cation (including institutions that are eligible to re-
ceive funds under part F of title III of the Higher 
Education Act of 1965 (20 U.S.C. 1067q et seq.)), 
to facilitate the evaluation process and measurement 
of achieved outcomes; 
(2) identify evidence-based and promising prac-
tices used by PROMISE Coordinating Councils 
under PROMISE Implementation grants that have 
proven to be effective in preventing involvement in, 
or diverting further involvement in, juvenile delin-
quency or criminal street gang activity; and 
(3) ensure— 
(A) that such evaluation is based on the 
performance standards that are developed by 
the PROMISE Advisory Panel in accordance 
with section 223(g) of the Juvenile Justice and 
Delinquency Prevention Act of 1974 (as added 
by section 401(b) of title IV of this division); 
(B) the development of longitudinal and 
clinical trial evaluation and performance meas-
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105 
urements with regard to the evidence-based and 
promising practices funded under this title; and 
(C) the dissemination of the practices iden-
tified in paragraph (2) to units of local govern-
ment and Indian tribes to promote the use of 
such practices by such units and tribes to pre-
vent involvement in, or to divert further involve-
ment in, juvenile delinquency or criminal street 
gang activity. 
TITLE IV—PELL GRANT PRESER-
VATION AND EXPANSION ACT 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Pell Grant Preserva-
tion and Expansion Act’’. 
SEC. 402. FINDINGS. 
Congress finds the following: 
(1) The United States needs individuals with 
the knowledge, skills, and abilities that enable them 
to thrive as educated citizens in society and success-
fully participate in an interconnected economy. 
(2) Investments in higher education through 
student aid such as the Federal Pell Grant program 
under section 401 of the Higher Education Act of 
1965 (20 U.S.C. 1070a) help students and families 
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106 
reach, afford, and complete education and training 
opportunities beyond high school. 
(3) The Federal Pell Grant program is the larg-
est source of federally funded grant aid for postsec-
ondary education. 
(4) The Federal Pell Grant program allows mil-
lions of people of the United States to attend college 
and is especially vital to students of color. Three in 
five African-American undergraduate students, and 
one-half of all Latino undergraduate students, rely 
on the Federal Pell Grant program. 
(5) The Federal Pell Grant program should 
continue to be a reliable source of funding for aspir-
ing students, their families, and future generations 
that they can count on to be there for them when 
they seek higher education. 
(6) To stabilize Federal Pell Grant funding and 
ensure the grant will continue to serve millions of 
students now and in the future, the program should 
become a fully mandatory program that grows with 
inflation. 
(7) Protecting surplus funds, restoring prior eli-
gibility cuts, and expanding access to underserved 
students will give millions of students and families 
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107 
the critical student aid support they need and de-
serve. 
SEC. 403. REFERENCES. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.). 
SEC. 404. FUNDING FEDERAL PELL GRANTS THROUGH 
MANDATORY FUNDING. 
(a) MANDATORY FUNDING; REINSTATING ELIGI-
BILITY FOR INCARCERATED INDIVIDUALS.—Section 401 
(20 U.S.C. 1070a) is amended— 
(1) in subsection (a)(1), by striking ‘‘through 
fiscal year 2017’’; 
(2) in subsection (b)— 
(A) by striking paragraphs (1), (6), and 
(7); 
(B) by redesignating paragraph (8) as 
paragraph (7); 
(C) by striking subparagraph (A) of para-
graph (2); 
(D) by redesignating subparagraph (B) of 
paragraph (2) as paragraph (2); 
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108 
(E) by inserting before paragraph (2) (as 
redesignated by subparagraph (D)) the fol-
lowing: 
‘‘(1) AMOUNT.—The amount of the Federal Pell 
Grant for a student eligible under this subpart shall be— 
‘‘(A) the maximum Federal Pell Grant de-
scribed in paragraph (6); less 
‘‘(B) the amount equal to the amount deter-
mined to be the expected family contribution with 
respect to such student for such year.’’; 
(F) in paragraph (4), by striking ‘‘max-
imum amount of a Federal Pell Grant award 
determined under paragraph (2)(A)’’ and in-
serting ‘‘maximum Federal Pell Grant described 
in paragraph (6)’’; 
(G) in paragraph (5), by striking ‘‘max-
imum amount of a Federal Pell Grant award 
determined under paragraph (2)(A)’’ and in-
serting ‘‘maximum amount of a Federal Pell 
Grant award described in paragraph (6)’’; 
(H) by inserting after paragraph (5) the 
following: 
‘‘(6) MAXIMUM FEDERAL PELL GRANT.— 
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109 
‘‘(A) AWARD YEAR 2018–2019.—For award 
year 2018–2019, the maximum Federal Pell 
Grant shall be $6,420. 
‘‘(B) SUBSEQUENT
AWARD
YEARS.—For 
award year 2019–2020 and each subsequent 
award year, the maximum Federal Pell Grant 
shall be equal to the total maximum Federal 
Pell Grant for the preceding award year under 
this paragraph— 
‘‘(i) increased by the annual adjust-
ment percentage for the award year for 
which the amount under this subparagraph 
is being determined; and 
‘‘(ii) rounded to the nearest $5. 
‘‘(C) DEFINITION
OF
ANNUAL
ADJUST-
MENT
PERCENTAGE.—In this paragraph, the 
term ‘annual adjustment percentage’, as applied 
to an award year, is equal to the estimated per-
centage increase in the Consumer Price Index 
(as determined by the Secretary, using the defi-
nition in section 478(f)) for the most recent cal-
endar year ending prior to the beginning of that 
award year.’’; and 
(I) in paragraph (7), as redesignated by 
subparagraph (B), by striking ‘‘may exceed’’ 
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110 
and all that follows through the period and in-
serting ‘‘may exceed the maximum Federal Pell 
Grant available for an award year.’’; 
(3) in subsection (f)— 
(A) in paragraph (1), by striking the mat-
ter preceding subparagraph (A) and inserting 
the following: ‘‘After receiving an application 
for a Federal Pell Grant under this subpart, the 
Secretary (including any contractor of the Sec-
retary processing applications for Federal Pell 
Grants under this subpart) shall, in a timely 
manner, furnish to the student financial aid ad-
ministrator at each institution of higher edu-
cation that a student awarded a Federal Pell 
Grant under this subpart is attending, the ex-
pected family contribution for each such stu-
dent. Each such student financial administrator 
shall—’’; and 
(B) in paragraph (3)— 
(i) by striking ‘‘after academic year 
1986–1987’’; and 
(ii) in paragraph (3), by striking ‘‘the 
Committee on Appropriations of the Sen-
ate, the Committee on Appropriations of 
the House of Representatives, and’’; 
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(4) by striking subsections (g) and (h); 
(5) by redesignating subsections (i) and (j) as 
subsections (g) and (h), respectively; and 
(6) by adding at the end the following: 
‘‘(k) APPROPRIATION OF FUNDS.—There are author-
ized to be appropriated, and there are appropriated, out 
of any money in the Treasury not otherwise appropriated, 
such sums as may be necessary for fiscal year 2017 and 
each subsequent fiscal year to provide the maximum Fed-
eral Pell Grant for which a student shall be eligible under 
this section during an award year.’’. 
(b) REPEAL OF SCORING REQUIREMENT.—Section 
406 of H. Con. Res. 95 (109th Congress) is amended— 
(1) by striking subsection (b); and 
(2) by striking ‘‘(a) IN GENERAL.—Upon’’ and 
inserting the following: ‘‘Upon’’. 
SEC. 405. RESTORING FEDERAL PELL GRANT ELIGIBILITY 
FOR BORROWER DEFENSE. 
Section 401(c)(5) (20 U.S.C. 1070a(c)(5)) is amend-
ed— 
(1) by striking ‘‘(5) The period’’ and inserting 
the following: ‘‘(5) MAXIMUM PERIOD.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the period’’; and 
(2) by adding at the end the following: 
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‘‘(B) EXCEPTION.— 
‘‘(i) IN GENERAL.—Any Federal Pell 
Grant that a student received during a pe-
riod described in subclause (I) or (II) of 
clause (ii) shall not count towards the stu-
dent’s duration limits under this para-
graph. 
‘‘(ii) APPLICABLE
PERIODS.—Clause 
(i) shall apply with respect to any Federal 
Pell Grant awarded to a student to attend 
an institution— 
‘‘(I) during a period— 
‘‘(aa) for which the student 
received a loan under this title; 
and 
‘‘(bb) for which the loan de-
scribed in item (aa) is forgiven 
under— 
‘‘(AA) section 437(c)(1) 
or 464(g)(1) due to the clos-
ing of the institution; 
‘‘(BB) section 455(h) 
due to the student’s success-
ful assertion of a defense to 
repayment of the loan; or 
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‘‘(CC) 
section 
432(a)(6), section 685.215 
of title 34, Code of Federal 
Regulations (or a successor 
regulation), or any other 
loan forgiveness provision or 
regulation under this Act, as 
a result of a determination 
by the Secretary or a court 
that the institution com-
mitted fraud or other mis-
conduct; or 
‘‘(II) during a period for which 
the student did not receive a loan 
under this title but for which, if the 
student had received such a loan, the 
student would have qualified for loan 
forgiveness under subclause (I)(bb).’’. 
SEC. 406. FEDERAL PELL GRANT ELIGIBILITY FOR DREAM-
ER STUDENTS. 
Section 484 (20 U.S.C. 1091) is amended— 
(1) in subsection (a)(5), by inserting ‘‘, or be a 
Dreamer student, as defined in subsection (u)’’ after 
‘‘becoming a citizen or permanent resident’’; and 
(2) by adding at the end the following: 
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‘‘(u) DREAMER STUDENTS.— 
‘‘(1) IN GENERAL.—In this section, the term 
‘Dreamer student’ means an individual who— 
‘‘(A) was younger than 16 years of age on 
the date on which the individual initially en-
tered the United States; 
‘‘(B) has provided a list of each secondary 
school that the student attended in the United 
States; and 
‘‘(C)(i) has earned a high school diploma, 
the recognized equivalent of such diploma from 
a secondary school, or a high school equivalency 
diploma in the United States or is scheduled to 
complete the requirements for such a diploma 
or equivalent before the next academic year be-
gins; 
‘‘(ii) has acquired a degree from an institu-
tion of higher education or has completed not 
less than 2 years in a program for a bacca-
laureate degree or higher degree at an institu-
tion of higher education in the United States 
and has made satisfactory academic progress, 
as defined in subsection (c), during such time 
period; 
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‘‘(iii) at any time was eligible for a grant 
of deferred action under— 
‘‘(I) the June 15, 2012, memorandum 
from the Secretary of Homeland Security 
entitled ‘Exercising Prosecutorial Discre-
tion with Respect to Individuals Who 
Came to the United States as Children’; or 
‘‘(II) the November 20, 2014, memo-
randum from the Secretary of Homeland 
Security entitled ‘Exercising Prosecutorial 
Discretion with Respect to Individuals 
Who Came to the United States as Chil-
dren and with Respect to Certain Individ-
uals Who Are the Parents of U.S. Citizens 
or Permanent Residents’; or 
‘‘(iv) has served in the uniformed services, 
as defined in section 101 of title 10, United 
States Code, for not less than 4 years and, if 
discharged, received an honorable discharge. 
‘‘(2) HARDSHIP
EXCEPTION.—The Secretary 
shall issue regulations that direct when the Depart-
ment shall waive the requirement of subparagraph 
(A) or (B), or both, of paragraph (1) for an indi-
vidual to qualify as a Dreamer student under such 
paragraph, if the individual— 
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‘‘(A) 
demonstrates 
compelling 
cir-
cumstances for the inability to satisfy the re-
quirement of such subparagraph (A) or (B), or 
both; and 
‘‘(B) satisfies the requirement of para-
graph (1)(C).’’. 
SEC. 407. REPEAL OF SUSPENSION OF ELIGIBILITY UNDER 
THE HIGHER EDUCATION ACT OF 1965 FOR 
GRANTS, LOANS, AND WORK ASSISTANCE FOR 
DRUG-RELATED OFFENSES. 
(a) REPEAL.—Subsection (r) of section 484 (20 
U.S.C. 1091(r)) is repealed. 
(b) REVISION OF FAFSA FORM.—Section 483 of the 
Higher Education Act of 1965 (20 U.S.C. 1090) is 
amended by adding at the end the following: 
‘‘(i) CONVICTIONS.—The Secretary shall not include 
any question about the conviction of an applicant for the 
possession or sale of illegal drugs on the FAFSA (or any 
other form developed under subsection (a)).’’. 
(c) CONFORMING
AMENDMENTS.—The Act (20 
U.S.C. 1001 et seq.) is amended— 
(1) 
in 
section 
428(b)(3) 
(20 
U.S.C. 
1078(b)(3))— 
(A) in subparagraph (C), by striking 
‘‘485(l)’’ and inserting ‘‘485(k)’’; and 
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(B) in subparagraph (D), by striking 
‘‘485(l)’’ and inserting ‘‘485(k)’’; 
(2) 
in 
section 
435(d)(5) 
(20 
U.S.C. 
1085(d)(5))— 
(A) in subparagraph (E), by striking 
‘‘485(l)’’ and inserting ‘‘485(k)’’; and 
(B) in subparagraph (F), by striking 
‘‘485(l)’’ and inserting ‘‘485(k)’’; 
(3) in section 484 (20 U.S.C. 1091), as amend-
ed by section 6, by redesignating subsections (s), (t), 
and (u) as subsections (r), (s), and (t), respectively; 
(4) in section 485 (20 U.S.C. 1092)— 
(A) by striking subsection (k); and 
(B) by redesignating subsections (l) and 
(m) as subsections (k) and (l), respectively; and 
(5) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C. 
1094(e)(2)(B)(ii)(IV)), by striking ‘‘(l) of section 
485’’ and inserting ‘‘(k) of section 485’’. 
SEC. 408. EXTENDING FEDERAL PELL GRANT ELIGIBILITY 
OF CERTAIN SHORT-TERM PROGRAMS. 
(a) IN GENERAL.—Section 401 (20 U.S.C. 1070a), 
as amended by section 404, is further amended by insert-
ing after subsection (h) the following: 
‘‘(i) JOB TRAINING FEDERAL PELL GRANT PRO-
GRAM.— 
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‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) ELIGIBLE
CAREER
PATHWAY
PRO-
GRAM.—The term ‘eligible career pathway pro-
gram’ means a program that— 
‘‘(i) meets the requirements of section 
484(d)(2); 
‘‘(ii) is a program of training services 
listed under section 122(d) of the Work-
force Innovation and Opportunity Act (29 
U.S.C. 3152(d)); and 
‘‘(iii) is part of a career pathway, as 
defined in section 3 of such Act (29 U.S.C. 
3102). 
‘‘(B) JOB TRAINING PROGRAM.—The term 
‘job training program’ means a career and tech-
nical education program at an institution of 
higher education that— 
‘‘(i) provides not less than 150, and 
not more than 600, clock hours of instruc-
tional time over a period of not less than 
8, and not more than 15, weeks; 
‘‘(ii) provides training aligned with 
the requirements of employers in the State 
or local area, which may include in-demand 
industry sectors or occupations, as defined 
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119 
in section 3 of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3102), in 
the State or local area (as defined in such 
section); 
‘‘(iii) is a program of training serv-
ices, and provided through an eligible pro-
vider of training services, listed under sec-
tion 122(d) of such Act (29 U.S.C. 
3152(d)); 
‘‘(iv) provides a student, upon comple-
tion of the program, with a recognized 
postsecondary credential, as defined in sec-
tion 3 of such Act, that is recognized by 
employers in the relevant industry, includ-
ing credentials recognized by industry or 
sector partnerships in the State or local 
area where the industry is located; 
‘‘(v) has been determined, by the in-
stitution of higher education, to provide 
academic content, an amount of instruc-
tional time, and a recognized postsec-
ondary credential that are sufficient to— 
‘‘(I) meet the hiring requirements 
of potential employers; and 
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120 
‘‘(II) satisfy any applicable edu-
cational prerequisite requirement for 
professional licensure or certification, 
so that the student who completes the 
program and seeks employment quali-
fies to take any licensure or certifi-
cation examination needed to practice 
or find employment in an occupation 
that the program prepares students to 
enter; 
‘‘(vi) may include integrated or basic 
skills courses; and 
‘‘(vii) may be offered as part of an eli-
gible career pathway program. 
‘‘(2) IN GENERAL.—For the award year begin-
ning on July 1, 2018, and each subsequent award 
year, the Secretary shall carry out a program 
through which the Secretary shall award job training 
Federal Pell Grants to students in job training pro-
grams. Each job training Federal Pell Grant award-
ed under this subsection shall have the same terms 
and conditions, and be awarded in the same manner, 
as a Federal Pell Grant awarded under subsection 
(a), except as follows: 
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‘‘(A) A student who is eligible to receive a 
job training Federal Pell Grant under this sub-
section is a student who— 
‘‘(i) has not yet attained a bacca-
laureate degree or postbaccalaureate de-
gree; 
‘‘(ii) attends an institution of higher 
education; 
‘‘(iii) is enrolled, or accepted for en-
rollment, in a job training program at such 
institution of higher education; and 
‘‘(iv) meets all other eligibility re-
quirements for a Federal Pell Grant (ex-
cept with respect to the type of program of 
study, as provided in clause (iii)). 
‘‘(B) The amount of a job training Federal 
Pell Grant for an eligible student shall be deter-
mined under subsection (b)(1), except that— 
‘‘(i) the maximum Federal Pell Grant 
awarded under this subsection for an 
award year shall be 50 percent of the max-
imum Federal Pell Grant awarded under 
subsection (b)(5) applicable to that award 
year; and 
‘‘(ii) subsection (b)(4) shall not apply. 
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‘‘(3) INCLUSION
IN
TOTAL
ELIGIBILITY
PE-
RIOD.—Any period during which a student receives 
a job training Federal Pell Grant under this sub-
section shall be included in calculating the student’s 
period of eligibility for Federal Pell Grants under 
subsection (c), and any regulations under such sub-
section regarding students who are enrolled in an 
undergraduate program on less than a full-time 
basis shall similarly apply to students who are en-
rolled in a job training program at an eligible insti-
tution on less than a full-time basis.’’. 
(b) ADDITIONAL SAFEGUARDS.—Section 496(a)(4) 
(20 U.S.C. 1099b(a)(4)) is amended— 
(1) in subparagraph (A), by striking ‘‘and’’ 
after the semicolon; 
(2) in subparagraph (B)(ii), by inserting ‘‘and’’ 
after the semicolon; and 
(3) by adding at the end the following: 
‘‘(C) if such agency or association has or 
seeks to include within its scope of recognition 
the evaluation of the quality of institutions of 
higher education participating in the job train-
ing Federal Pell Grant program under section 
401(i), such agency or association shall, in ad-
dition to meeting the other requirements of this 
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123 
subpart, demonstrate to the Secretary that, 
with respect to such job training programs— 
‘‘(i) the agency or association’s stand-
ards include a process for determining 
whether the program provides training 
aligned with the requirements of employers 
in the State or local area served by the 
program; and 
‘‘(ii) the agency or association re-
quires a demonstration that the program— 
‘‘(I) has identified each recog-
nized postsecondary credential offered 
and the corresponding industry or sec-
tor partnership that actively recog-
nizes each credential in the relevant 
industry in the State or local area 
where the industry is located; and 
‘‘(II) provides the academic con-
tent and amount of instructional time 
that is sufficient to— 
‘‘(aa) meet the hiring re-
quirements of potential employ-
ers; and 
‘‘(bb) satisfy any applicable 
educational prerequisites for pro-
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fessional licensure or certification 
requirements so that the student 
who completes the program and 
seeks employment qualifies to 
take any licensure or certification 
examination that is needed to 
practice or find employment in 
an occupation that the program 
prepares students to enter;’’. 
SEC. 409. PROVIDING FEDERAL PELL GRANTS FOR IRAQ 
AND AFGHANISTAN VETERAN’S DEPENDENTS. 
(a) AMENDMENTS.—Part A of title IV (20 U.S.C. 
1070a et seq.) is amended— 
(1) in section 401, as amended by section 408, 
by inserting after subsection (i) the following: 
‘‘(j) SCHOLARSHIPS
FOR
VETERAN’S
DEPEND-
ENTS.— 
‘‘(1) DEFINITION OF ELIGIBLE VETERAN’S DE-
PENDENT.—In this subsection, the term ‘eligible vet-
eran’s dependent’ means a dependent or an inde-
pendent student— 
‘‘(A) whose parent or guardian was a 
member of the Armed Forces of the United 
States and died as a result of performing mili-
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tary service in Iraq or Afghanistan after Sep-
tember 11, 2001; and 
‘‘(B) who, at the time of the parent or 
guardian’s death, was— 
‘‘(i) less than 24 years of age; or 
‘‘(ii) enrolled at an institution of high-
er education on a part-time or full-time 
basis. 
‘‘(2) GRANTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
award a Federal Pell Grant, as modified in ac-
cordance with the requirements of this sub-
section, to each eligible veteran’s dependent to 
assist in paying the eligible veteran’s depend-
ent’s cost of attendance at an institution of 
higher education. 
‘‘(B) DESIGNATION.—Federal Pell Grants 
made under this subsection may be known as 
‘Iraq and Afghanistan Service Grants’. 
‘‘(3) PREVENTION OF DOUBLE BENEFITS.—No 
eligible veteran’s dependent may receive a grant 
under both this subsection and subsection (a). 
‘‘(4) TERMS AND CONDITIONS.—The Secretary 
shall award Iraq and Afghanistan Service Grants 
under this subsection in the same manner and with 
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126 
the same terms and conditions, including the length 
of the period of eligibility, as the Secretary awards 
Federal Pell Grants under subsection (a), except 
that— 
‘‘(A) the award rules and determination of 
need applicable to the calculation of Federal 
Pell Grants under subsection (a) shall not apply 
to Iraq and Afghanistan Service Grants; 
‘‘(B) the provisions of paragraphs (1)(B) 
and (3) of subsection (b), and subsection (f), 
shall not apply; 
‘‘(C) the maximum period determined 
under subsection (c)(5) shall be determined by 
including all Iraq and Afghanistan Service 
Grants received by the eligible veteran’s de-
pendent, including such Grants received under 
subpart 10 before the effective date of this sub-
section; and 
‘‘(D) an Iraq and Afghanistan Service 
Grant to an eligible veteran’s dependent for any 
award year shall equal the maximum Federal 
Pell Grant available under subsection (b)(5) for 
that award year, except that an Iraq and Af-
ghanistan Service Grant— 
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‘‘(i) shall not exceed the cost of at-
tendance of the eligible veteran’s depend-
ent for that award year; and 
‘‘(ii) shall be adjusted to reflect the 
attendance by the eligible veteran’s de-
pendent on a less than full-time basis in 
the same manner as such adjustments are 
made for a Federal Pell Grant under sub-
section (a). 
‘‘(5) ESTIMATED FINANCIAL ASSISTANCE.—For 
purposes of determinations of need under part F, an 
Iraq and Afghanistan Service Grant shall not be 
treated as estimated financial assistance as de-
scribed in sections 471(3) and 480(j).’’; and 
(2) by striking subpart 10 of part A (20 U.S.C. 
1070h). 
(b) EFFECTIVE DATE; TRANSITION.— 
(1) EFFECTIVE DATE.—The amendments made 
by this section shall take effect with respect to the 
award year immediately following the date of enact-
ment of this Act. 
(2) TRANSITION.—The Secretary shall take 
such steps as are necessary to transition from the 
Iraq and Afghanistan Service Grants program under 
subpart 10 of part A of title IV of the Higher Edu-
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128 
cation Act of 1965 (20 U.S.C. 1070h), as in effect 
on the day before the effective date of this section, 
and the Iraq and Afghanistan Service Grants pro-
gram under section 401(j) of the Higher Education 
Act of 1965 (20 U.S.C. 1070a(j)), as amended by 
this section. 
SEC. 410. INCREASING SUPPORT FOR WORKING STUDENTS 
BY 35 PERCENT. 
(a) DEPENDENT STUDENTS.—Section 475(g)(2)(D) 
(20 U.S.C. 1087oo(g)(2)(D)) is amended to read as fol-
lows: 
‘‘(D) an income protection allowance (or a 
successor amount prescribed by the Secretary 
under section 478) of $9,010 for academic year 
2018–2019;’’. 
(b) INDEPENDENT STUDENTS WITHOUT DEPEND-
ENTS OTHER THAN A SPOUSE.—Section 476(b)(1)(A)(iv) 
(20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as 
follows: 
‘‘(iv) an income protection allowance 
(or a successor amount prescribed by the 
Secretary under section 478)— 
‘‘(I) for single or separated stu-
dents, or married students where both 
are enrolled pursuant to subsection 
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(a)(2), of $14,010 for academic year 
2018–2019; and 
‘‘(II) for married students where 
one is enrolled pursuant to subsection 
(a)(2), of $22,460 for academic year 
2018–2019;’’. 
(c) INDEPENDENT STUDENTS WITH DEPENDENTS 
OTHER THAN A SPOUSE.—Section 477(b)(4) (20 U.S.C. 
1087qq(b)(4)) is amended to read as follows: 
‘‘(4) INCOME
PROTECTION
ALLOWANCE.—The 
income protection allowance is determined by the fol-
lowing table (or a successor table prescribed by the 
Secretary under section 478), for academic year 
2018–2019: 
‘‘Income Protection Allowance 
Family 
Size 
Number in College 
(including 
student) 
For each 
additional 
subtract: 
$35,470 
$29,410 
$6,030
44,170 
38,130 
$32,070 
54,540 
45,490 
42,450 
$36,370 
64,360 
58,280 
52,240 
46,190 
$40,160 
75,260 
69,210 
63,190 
57,090 
51,070 
For each 
additional 
add: 
8,500 
’’. 
(d) UPDATED
TABLES
AND
AMOUNTS.—Section 
478(b) (20 U.S.C. 1087rr(b)) is amended— 
(1) in paragraph (1), by striking subparagraphs 
(A) and (B) and inserting the following: 
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‘‘(A) IN
GENERAL.—For each academic 
year after academic year 2018–2019, the Sec-
retary shall publish in the Federal Register a 
revised table of income protection allowances 
for the purpose of sections 475(c)(4) and 
477(b)(4), subject to subparagraphs (B) and 
(C). 
‘‘(B) TABLE
FOR
INDEPENDENT
STU-
DENTS.—For each academic year after aca-
demic year 2018–2019, the Secretary shall de-
velop the revised table of income protection al-
lowances by increasing each of the dollar 
amounts contained in the table of income pro-
tection allowances under section 477(b)(4) by a 
percentage equal to the estimated percentage 
increase in the Consumer Price Index (as deter-
mined by the Secretary for the most recent cal-
endar year ending prior to the beginning of the 
academic year for which the determination is 
being made), and rounding the result to the 
nearest $10.’’; and 
(2) in paragraph (2), by striking ‘‘shall be de-
veloped’’ and all that follows through the period at 
the end and inserting ‘‘shall be developed for each 
academic year after academic year 2018–2019, by 
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(6) in section 485E(b)(1)(A) (20 U.S.C. 
1092f(b)(1)(A)), by striking ‘‘section 401(b)(2)(A)’’ 
and inserting ‘‘section 401(b)(1)’’; and 
(7) in section 894(f)(2)(C)(ii)(I) (20 U.S.C. 
1161y(f)(2)(C)(ii)(I)), 
by 
striking 
‘‘section 
401(b)(2)(A)’’ and inserting ‘‘section 401(b)(1)’’. 
SEC. 414. EFFECTIVE DATE. 
Except as otherwise provided, this title, and the 
amendments made by this title, shall take effect beginning 
on July 1, 2018, and shall apply to grant and award deter-
minations made under title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.) beginning with the 
2018–2019 award year. 
DIVISION B—HOUSING 
TITLE V—COMMON SENSE 
HOUSING INVESTMENT 
SEC. 501. CONGRESSIONAL FINDINGS. 
The Congress finds the following: 
(1) Two principal Federal housing goals are to 
increase the rate of home ownership and make rent-
al housing affordable for low-income families and in-
dividuals. 
(2) Much more progress has been achieved on 
the first goal than on the second goal. 
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134 
(3) The Federal Government devotes more than 
three times the amount of budgetary resources to 
supporting home ownership than it devotes to mak-
ing affordable rental housing available. 
(4) The burden of housing costs is more pro-
nounced among renters than among owners. 
(5) There is a shortage of more than 7 million 
homes affordable to families in the bottom 20 per-
cent of income, meaning that there are only 30 af-
fordable units for every 100 families. 
(6) Only one in four families that qualify for 
rental housing assistance receives benefits. 
(7) Housing assistance waiting lists can be 10 
years long and in many communities are closed. 
(8) The shortage of rental homes that are af-
fordable for extremely low-income households to be 
the principal cause of homelessness in the United 
States. 
(9) Public housing facilities in the United 
States have more than $26 billion in deferred main-
tenance after decades of neglect which results in a 
loss of 10,000 units each year. 
(10) The low-income housing tax credit success-
fully provides 100,000 units of affordable housing 
every year. 
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(11) Every tax reform commission has rec-
ommended capping the mortgage interest deduction 
and converting it to a fairer and simpler credit. 
(12) More than 75 percent of the value of the 
mortgage interest deduction inures to the benefit of 
the top 20 percent of earners. 
(13) Fewer than half of tax filers with a home 
mortgage claim the mortgage interest deduction. 
(14) Only 9 percent of rural tax filers claim the 
mortgage interest deduction. 
(15) Ninety-six percent of homes sold between 
2005 and 2011 sold for less than $500,000. 
(16) A better approach that provides equitable 
benefits for families who buy homes, enables more 
low- and moderate-income homeowners to receive a 
benefit, and invests in affordable rental housing to 
assist those who used to be homeless or who have 
extremely or very low incomes is needed to strength-
en families and communities. 
SEC. 502. REPLACEMENT OF MORTGAGE INTEREST DEDUC-
TION WITH MORTGAGE INTEREST CREDIT. 
(a) NONREFUNDABLE CREDIT.—Subpart A of part 
IV of subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to nonrefundable personal credits) 
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136 
is amended by inserting after section 25D the following 
new section: 
‘‘SEC. 25E. INTEREST ON INDEBTEDNESS SECURED BY 
QUALIFIED RESIDENCE. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to 15 percent of the qualified residence interest paid 
or accrued during the taxable year. 
‘‘(b) QUALIFIED RESIDENCE INTEREST.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified resi-
dence interest’ means interest which is paid or ac-
crued during the taxable year on— 
‘‘(A) acquisition indebtedness with respect 
to any qualified residence of the taxpayer, or 
‘‘(B) home equity indebtedness with re-
spect to any qualified residence of the taxpayer. 
For purposes of the preceding sentence, the deter-
mination of whether any property is a qualified resi-
dence of the taxpayer shall be made as of the time 
the interest is accrued. 
‘‘(2) OVERALL
LIMITATION.—The aggregate 
amount of indebtedness taken into account for any 
period for purposes of this section shall not exceed 
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$500,000 ($250,000 in the case of a married indi-
vidual filing a separate return). 
‘‘(3) ACQUISITION INDEBTEDNESS.—The term 
‘acquisition indebtedness’ means any indebtedness 
which— 
‘‘(A) is incurred in acquiring, constructing, 
or substantially improving any qualified resi-
dence of the taxpayer, and 
‘‘(B) is secured by such residence. 
Such term also includes any indebtedness secured by 
such residence resulting from the refinancing of in-
debtedness meeting the requirements of the pre-
ceding sentence (or this sentence), but only to the 
extent the amount of the indebtedness resulting 
from such refinancing does not exceed the amount of 
the refinanced indebtedness. 
‘‘(4) HOME EQUITY INDEBTEDNESS.— 
‘‘(A) IN GENERAL.—The term ‘home eq-
uity indebtedness’ means any indebtedness 
(other than acquisition indebtedness) secured 
by a qualified residence to the extent the aggre-
gate amount of such indebtedness does not ex-
ceed— 
‘‘(i) the fair market value of such 
qualified residence, reduced by 
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138 
‘‘(ii) the amount of acquisition indebt-
edness with respect to such residence. 
‘‘(B) LIMITATION.—The aggregate amount 
treated as home equity indebtedness for any pe-
riod shall not exceed $100,000 ($50,000 in the 
case of a married individual filing a separate re-
turn). 
‘‘(c) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) QUALIFIED RESIDENCE.—The term ‘quali-
fied residence’ means— 
‘‘(A) the principal residence (within the 
meaning of section 121) of the taxpayer, and 
‘‘(B) 1 other residence of the taxpayer 
which is selected by the taxpayer for purposes 
of this subsection for the taxable year and 
which is used by the taxpayer as a residence 
(within the meaning of section 280A(d)(1)). 
‘‘(2) MARRIED INDIVIDUALS FILING SEPARATE 
RETURNS.—If a married couple does not file a joint 
return for the taxable year— 
‘‘(A) such couple shall be treated as 1 tax-
payer for purposes of paragraph (1), and 
‘‘(B) each individual shall be entitled to 
take into account 1 residence unless both indi-
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139 
viduals consent in writing to 1 individual taking 
into account the principal residence and 1 other 
residence. 
‘‘(3) RESIDENCE NOT RENTED.—For purposes 
of 
paragraph 
(1)(B), 
notwithstanding 
section 
280A(d)(1), if the taxpayer does not rent a dwelling 
unit at any time during a taxable year, such unit 
may be treated as a residence for such taxable year. 
‘‘(4) UNENFORCEABLE SECURITY INTERESTS.— 
Indebtedness shall not fail to be treated as secured 
by any property solely because, under any applicable 
State or local homestead or other debtor protection 
law in effect on August 16, 1986, the security inter-
est is ineffective or the enforceability of the security 
interest is restricted. 
‘‘(5) SPECIAL
RULES
FOR
ESTATES
AND 
TRUSTS.—For purposes of determining whether any 
interest paid or accrued by an estate or trust is 
qualified residence interest, any residence held by 
such estate or trust shall be treated as a qualified 
residence of such estate or trust if such estate or 
trust establishes that such residence is a qualified 
residence of a beneficiary who has a present interest 
in such estate or trust or an interest in the resid-
uary of such estate or trust. 
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‘‘(d) COORDINATION WITH DEDUCTION.—In the case 
of any taxable year beginning in calendar years 2018 
through 2022, the taxpayer may elect to apply this section 
in lieu of the deduction under section 163 for qualified 
residence interest.’’. 
(b) PHASEOUT OF DEDUCTION.—Section 163(h) of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(5) PHASEOUT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2017, the amount otherwise allowable as a de-
duction by reason of paragraph (2)(D) shall be 
the applicable percentage of such amount. 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the applicable 
percentage shall be determined in accordance 
with the following table: 
‘‘For taxable years beginning in calendar year: 
The applicable 
percentage is: 
2018 ............................................................................................
100%
2019 ............................................................................................
80%
2020 ............................................................................................
60%
2021 ............................................................................................
40%
2022 ............................................................................................
20%
2023 and thereafter ....................................................................
0%.’’. 
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141 
(c) PHASEDOWN OF MORTGAGE LIMIT.—Subpara-
graph (B) of section 163(h)(3) of such Code is amended 
by adding at the end the following: 
‘‘(iii) PHASEDOWN.— 
‘‘(I) IN GENERAL.—In the case 
of any taxable year beginning in cal-
endar years 2018 through 2022, 
clause (ii) shall be applied by sub-
stituting the amounts specified in the 
table in subclause (II) of this clause 
for ‘$1,000,000’ and ‘$500,000’, re-
spectively. 
‘‘(II) PHASEDOWN
AMOUNTS.— 
For purposes of subclause (I), the 
amounts specified in this subclause 
for a taxable year shall be the 
amounts specified in the following 
table: 
‘‘For taxable years beginning in calendar year: 
Amount 
substituted 
for 
$1,000,000: 
Amount 
substituted 
for 
$500,000: 
2018 ........................................................................
$1,000,000 
$500,000
2019 ........................................................................
$900,000 
$450,000
2020 ........................................................................
$800,000 
$400,000
2021 ........................................................................
$700,000 
$350,000
2022 ........................................................................
$600,000 
$300,000.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
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142 
of such Code is amended by inserting after section 25D 
the following new item: 
‘‘Sec. 25E. Interest on indebtedness secured by qualified residence.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to interest paid or 
accrued after December 31, 2017. 
SEC. 503. DEDUCTION ALLOWED FOR INTEREST AND TAXES 
RELATING TO LAND FOR DWELLING PUR-
POSES OWNED OR LEASED BY COOPERATIVE 
HOUSING CORPORATIONS. 
(a) IN GENERAL.—Subparagraph (B) of section 
216(b)(1) of the Internal Revenue Code of 1986 is amend-
ed by inserting ‘‘or land,’’ after ‘‘building,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to amounts paid or accrued after 
December 31, 2016. 
SEC. 504. USE OF MORTGAGE INTEREST SAVINGS TO IN-
CREASE LOW-INCOME HOUSING TAX CREDIT. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(h)(3)(C)(ii) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$1.75’’ and inserting ‘‘$2.70’’. 
(b) INFLATION ADJUSTMENT.—Subparagraph (H) of 
section 42(h)(3) of such Code is amended to read as fol-
lows: 
‘‘(H) COST-OF-LIVING ADJUSTMENT.— 
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143 
‘‘(i) IN GENERAL.—In the case of a 
calendar year after 2016, the $2,000,000 
amount in subparagraph (C) shall be in-
creased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2001’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
‘‘(ii) PER
CAPITA
AMOUNT.—In the 
case of a calendar year after 2017, the 
$2.70 amount in subparagraph (C) shall 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2016’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
‘‘(iii) ROUNDING.— 
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144 
‘‘(I) 
In 
the 
case 
of 
the 
$2,000,000 
amount, 
any 
increase 
under clause (i) which is not a mul-
tiple of $5,000 shall be rounded to the 
next lowest multiple of $5,000. 
‘‘(II) In the case of the $2.70 
amount, any increase under clause (ii) 
which is not a multiple of 5 cents 
shall be rounded to the next lowest 
multiple of 5 cents.’’. 
(c) 
ELIGIBLE
BASIS.—Clause 
(i) 
of 
section 
42(d)(5)(B) of such Code is amended by striking ‘‘and’’ 
at the end of subclause (I), by striking the period at the 
end of subclause (II) and inserting ‘‘, and’’, and by adding 
at the end the following: 
‘‘(III) in the case of a building 
containing units which are designated 
to serve extremely low-income house-
holds by the State housing credit 
agency and require the increase in 
credit under this subparagraph in 
order for such building to be finan-
cially feasible as part of a qualified 
low-income housing project, the eligi-
ble basis of such building determined 
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145 
by the portion of such units shall be 
150 percent of such basis determined 
without 
regard 
to 
this 
subpara-
graph.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations made in calendar 
years beginning after December 31, 2016. 
SEC. 505. USE OF MORTGAGE INTEREST SAVINGS FOR AF-
FORDABLE HOUSING PROGRAMS. 
(a) USE OF SAVINGS.—For each year, the Secretary 
of the Treasury shall determine the amount of revenues 
accruing to the general fund of the Treasury by reason 
of the enactment of section 602 that remain after use of 
such revenues in accordance with section 604 and shall 
credit an amount equal to such remaining revenues as fol-
lows: 
(1) HOUSING
TRUST
FUND.—The Secretary 
shall credit the Housing Trust Fund established 
under section 1338 of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4568) with an amount equal to 60 per-
cent of the amount of such remaining revenues. 
(2) SECTION 8 RENTAL ASSISTANCE.—The Sec-
retary shall credit an amount equal to 30 percent of 
the amount of such remaining revenues to the Sec-
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146 
retary of Housing and Urban Development for use 
only for providing tenant- and project-based rental 
assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f). 
(3) PUBLIC
HOUSING
CAPITAL
FUND.—The 
Secretary shall credit an amount equal to 10 percent 
of the amount of such remaining revenues to the 
Public Housing Capital Fund under section 9(d) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437g(d)). 
(b) CHANGES TO HOUSING TRUST FUND.—Not later 
than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall revise the regula-
tions relating to the Housing Trust Fund established 
under section 1338 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568) to provide that such section is carried out with the 
maximum amount of flexibility possible while complying 
with such section, which shall include revising such regula-
tions— 
(1) to increase the limitation on amounts from 
the Fund that are available for use for operating as-
sistance for housing; 
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147 
(2) to allow public housing agencies and tribally 
designated housing entities to be recipient of grants 
amounts from the Fund that are allocated to a State 
or State designated entity; and 
(3) eliminate the applicability of rules for the 
Fund that are based on the HOME Investment 
Partnerships Act (42 U.S.C. 1721 et seq.). 
TITLE VI—LOW-INCOME HOUS-
ING TAX CREDIT FOR HOME-
LESS YOUTH 
SEC. 601. STUDENTS WHO WERE HOMELESS YOUTHS OR 
HOMELESS VETERANS PERMITTED TO OC-
CUPY LOW-INCOME HOUSING UNITS. 
(a) IN GENERAL.—Section 42(i)(3)(D)(i) of the In-
ternal Revenue Code of 1986 is amended by redesignating 
subclauses (II) and (III) as subclauses (IV) and (V) and 
inserting after subclause (I) the following new subclauses: 
‘‘(II) a student who was (prior to 
occupying such unit) a homeless child 
or youth (as defined in section 725 of 
the McKinney-Vento Homeless Assist-
ance Act), 
‘‘(III) a student who was (prior 
to occupying such unit) a homeless 
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148 
veteran (as defined in section 2002 of 
title 38, United States Code),’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made on or after 
the date of the enactment of this Act. 
SEC. 602. RENTERS TAX CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. RENTERS CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of a qualified credit recipient, the renters credit 
for any taxable year is an amount equal to the sum of 
the renters credit amounts allocated to such qualified 
credit recipient under this section for months ending dur-
ing the taxable year. 
‘‘(b) RENTERS CREDIT AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘renters credit amount’ means the 
rent reduction amount with respect to each rental 
unit which is occupied by a qualified renter. 
‘‘(2) QUALIFIED
RENTER.—For purposes of 
this section, the term ‘qualified renter’ means a fam-
ily unit with income not greater than the higher of— 
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149 
‘‘(A) 60 percent of local median income, or 
‘‘(B) 150 percent of the Federal poverty 
line, 
in each case as determined by the Secretary of 
Housing and Urban Development for a family of the 
size involved. 
‘‘(3) RENT
REDUCTION
AMOUNT.—For pur-
poses of this section— 
‘‘(A) IN GENERAL.—The term ‘rent reduc-
tion amount’ is the amount by which the fair 
market rent for the unit involved exceeds the 
rent charged to the qualified renter. 
‘‘(B) LIMITATION.—The rent reduction 
amount taken into account under this section 
shall not exceed the excess of— 
‘‘(i) the rent charged to the qualified 
renter (or, if lower, specified modest rent), 
over 
‘‘(ii) 30 percent of the qualified rent-
ers income (prorated monthly) as deter-
mined by the renters credit agency of the 
State. 
‘‘(C) 
SPECIFIED
MODEST
RENT.—The 
term ‘specified modest rent’ means— 
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150 
‘‘(i) the Fair Market Rent determined 
by the Secretary of Housing and Urban 
Development for the ZIP code (if the unit 
is located in a metropolitan area) or non- 
metropolitan county, or 
‘‘(ii) such amount as may be deter-
mined by the State with respect to the 
area in which the unit is located if such 
amount is within 25 percent of the amount 
determined under clause (i) with respect to 
such unit. 
‘‘(D) UTILITIES.—The renters credit agen-
cy of the State may determine whether and how 
to take into account the cost of utilities in de-
termining the rent reduction amount. 
‘‘(E) CREDIT ADJUSTMENT.—The renters 
credit agency of the State may elect to increase 
the rent reduction amount such that such 
amount does not exceed 110 percent of such 
amount as determined without regard to this 
subparagraph. 
‘‘(c) QUALIFIED CREDIT RECIPIENT.—For purposes 
of this section, the term ‘qualified credit recipient’ means, 
with respect to any rental unit occupied by a qualified 
renter, the owner of such unit but only to the extent of 
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151 
the renters credit amounts which have been allocated to 
such person by the renters credit agency. In lieu of the 
owner of the unit, the renters credit agency may treat the 
lender of any loan to such owner as the qualified credit 
recipient if such unit secures such loan. 
‘‘(d) ALLOCATIONS BY RENTERS CREDIT AGENCY TO 
CREDIT RECIPIENTS.— 
‘‘(1) IN GENERAL.—The renters credit agency 
may make allocations of renters credit amounts to 
qualified credit recipients under this section on the 
basis of— 
‘‘(A) the identity of the qualified renter, 
such that the renters credit amount is allowed 
to the owner of any rental unit which such 
qualified renter occupies (or the lender referred 
to in subsection (c)) for any month, or 
‘‘(B) one or more rental units, such that 
the renters credit amount is allowed to the 
owner of such units (or the lender referred to 
in subsection (c)) for such months as such units 
are occupied by a qualified renter. 
‘‘(2) RESTRICTIONS ON UNIT BASED ALLOCA-
TIONS.—A renters credit agency may make alloca-
tions of renters credit as described in paragraph 
(1)(B) only if— 
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152 
‘‘(A) such units are part of a project or 
building in which not more than 40 percent of 
the units receive allocations under this section 
(the Secretary may provide such exceptions to 
the requirement of this subparagraph as the 
Secretary determines appropriate for small 
buildings or buildings with respect to which 
more than 40 percent of the units were pre-
viously subsidized under other Federal pro-
grams), and 
‘‘(B) the Secretary has approved a mobility 
plan submitted by such renters credit agency 
which provides for an adequate method to en-
sure that qualified renters have the ability to 
move from a unit which is eligible for credit 
under this section without losing the rent sub-
sidy provided by this section. 
‘‘(e) ALLOCATIONS
OF
CREDIT
AUTHORITY
TO 
STATE AGENCIES.— 
‘‘(1) RENTERS CREDIT DOLLAR AMOUNT FOR 
AGENCIES.— 
‘‘(A) STATE LIMITATION.—The aggregate 
credit amounts which a renters credit agency 
may allocate for any calendar year is the por-
tion of the State renters credit ceiling allocated 
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153 
under this paragraph for such calendar year to 
such agency. 
‘‘(B) STATE
CEILING
INITIALLY
ALLO-
CATED
TO
STATE
HOUSING
CREDIT
AGEN-
CIES.—Except as provided in subparagraphs 
(D) and (E), the State renters credit ceiling for 
each calendar year shall be allocated to the 
renters credit agency of such State. If there is 
more than 1 renters credit agency of a State, 
all such agencies shall be treated as a single 
agency. 
‘‘(C) STATE RENTERS CREDIT CEILING.— 
The State renters credit ceiling applicable to 
any State and any calendar year shall be an 
amount equal to the sum of— 
‘‘(i) the unused State renters credit 
ceiling (if any) of such State for the pre-
ceding calendar year, 
‘‘(ii) the greater of— 
‘‘(I) $17.50 multiplied by the 
State population, or 
‘‘(II) $20,000,000, 
‘‘(iii) the amount of State renters 
credit ceiling returned in the calendar year, 
plus 
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‘‘(iv) the amount (if any) allocated 
under subparagraph (D) to such State by 
the Secretary. 
For purposes of clause (i), the unused State 
renters credit ceiling for any calendar year is 
the excess (if any) of the sum of the amounts 
described in clauses (ii) through (iv) over the 
aggregate renters credit dollar amount allocated 
for such year. 
‘‘(D) 
UNUSED
RENTERS
CREDIT 
CARRYOVERS
ALLOCATED
AMONG
CERTAIN 
STATES.— 
‘‘(i) IN GENERAL.—The unused rent-
ers credit carryover of a State for any cal-
endar year shall be assigned to the Sec-
retary for allocation among qualified 
States for the succeeding calendar year. 
‘‘(ii) UNUSED RENTERS CREDIT CAR-
RYOVER.—For purposes of this subpara-
graph, the unused renters credit carryover 
of a State for any calendar year is the ex-
cess (if any) of— 
‘‘(I) the unused State renters 
credit ceiling for the year preceding 
such year, over 
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‘‘(II) the aggregate renters credit 
dollar amount allocated for such year. 
‘‘(iii) FORMULA FOR ALLOCATION OF 
UNUSED
HOUSING
CREDIT
CARRYOVERS 
AMONG QUALIFIED STATES.—The amount 
allocated under this subparagraph to a 
qualified State for any calendar year shall 
be the amount determined by the Secretary 
to bear the same ratio to the aggregate un-
used renters credit carryovers of all States 
for the preceding calendar year as such 
State’s population for the calendar year 
bears to the population of all qualified 
States for the calendar year. For purposes 
of the preceding sentence, population shall 
be determined in accordance with section 
146(j). 
‘‘(iv) QUALIFIED
STATE.—For pur-
poses of this subparagraph, the term 
‘qualified State’ means, with respect to a 
calendar year, any State— 
‘‘(I) which allocated its entire 
State renters credit ceiling for the 
preceding calendar year, and 
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156 
‘‘(II) for which a request is made 
(not later than May 1 of the calendar 
year) to receive an allocation under 
clause (iii). 
‘‘(E) APPLICATION OF CERTAIN RULES.— 
For purposes of this paragraph, rules similar to 
the rules of subparagraphs (E), (F), and (G) of 
section 42(h)(3) shall apply. 
‘‘(F) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of a 
calendar year after 2017, the $20,000,000 
and $17.50 amounts in subparagraph (C) 
shall each be increased by an amount equal 
to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2001’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
‘‘(ii) ROUNDING.— 
‘‘(I) 
In 
the 
case 
of 
the 
$20,000,000 amount, any increase 
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157 
under clause (i) which is not a mul-
tiple of $50,000 shall be rounded to 
the next lowest multiple of $50,000. 
‘‘(II) In the case of the $17.50 
amount, any increase under clause (i) 
which is not a multiple of 50 cents 
shall be rounded to the next lowest 
multiple of 50 cents. 
‘‘(f) OTHER DEFINITIONS.—For purposes of this sec-
tion— 
‘‘(1) RENTERS
CREDIT
AGENCY.—The term 
‘renters credit agency’ means, with respect to any 
State, the housing credit agency of such State (as 
defined in section 42(h)(8)(A)) or such other agency 
as is authorized to carry out the activities of the 
renters credit agency under this section. 
‘‘(2) POSSESSIONS TREATED AS STATES.—The 
term ‘State’ includes a possession of the United 
States. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.— 
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158 
(1) IN GENERAL.—Subsection (b) of section 38 
of such Code is amended by striking ‘‘plus’’ at the 
end of paragraph (35), by striking the period at the 
end of paragraph (36) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(37) the renters credit determined under sec-
tion 45S(a).’’. 
(2) CREDIT ALLOWABLE AGAINST ALTERNATIVE 
MINIMUM
TAX.—Subparagraph 
(B) 
of 
section 
38(c)(4) of such Code is amended by redesignating 
clauses (vii) through (ix) as clauses (viii) through 
(x), respectively, and by inserting after clause (vi) 
the following new clause: 
‘‘(vii) the credit determined under sec-
tion 45S,’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45S. Renters credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations made for calendar 
years after 2016 and to taxable years ending after Decem-
ber 31, 2016. 
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159 
DIVISION C—NUTRITION 
TITLE 
VII—IMPROVING 
TEM-
PORARY 
ASSISTANCE 
TO 
NEEDY FAMILIES PROGRAM 
SEC. 701. REFERENCES. 
Except as otherwise expressly provided in this title, 
wherever in this title an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or 
other provision, the amendment or repeal shall be consid-
ered to be made to a section or other provision of the So-
cial Security Act. 
SEC. 702. STATE PLANS REQUIRED TO ADDRESS WHETHER 
AND HOW STATES WILL PROVIDE ASSIST-
ANCE TO NEEDIEST GEOGRAPHIC AREAS. 
Section 402(a)(1)(A)(i) (42 U.S.C. 602(a)(1)(A)(i)) 
is amended by inserting ‘‘, including whether and how the 
State will give priority to providing benefits and services 
in areas of the State with the greatest need (such as areas 
with the greatest unemployment rates, the greatest pov-
erty rates, and the least job opportunity to population ra-
tios)’’ before the period. 
SEC. 703. FUNDING OF THE TANF PROGRAM. 
(a) STATE FAMILY ASSISTANCE GRANT.— 
(1) 
IN
GENERAL.—Section 
403(a)(1) 
(42 
U.S.C. 603(a)(1)) is amended— 
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(A) in subparagraph (A), by striking ‘‘fis-
cal year 2012’’ and inserting ‘‘fiscal year 2013 
and each succeeding fiscal year’’; and 
(B) by striking subparagraphs (B) and (C) 
and inserting the following: 
‘‘(B) 
STATE
FAMILY
ASSISTANCE 
GRANT.— 
‘‘(i) IN GENERAL.—The State family 
assistance grant payable to a State for a 
fiscal year shall be the greater of— 
‘‘(I) the adjusted basic block 
grant, plus the amount required to be 
paid to the State under paragraph (3) 
(as in effect on September 30, 2010) 
for fiscal year 2010; or 
‘‘(II) the amount required to be 
paid to the State under this para-
graph for the preceding fiscal year. 
‘‘(ii) 
ADJUSTED
BASIC
BLOCK 
GRANT.—In clause (i), the term ‘adjusted 
block grant’ means, with respect to a 
State, the product of— 
‘‘(I) the amount required to be 
paid to the State under this para-
graph for fiscal year 2010 (deter-
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161 
mined without regard to any reduction 
pursuant to section 409 or 412(a)(1)); 
‘‘(II) 1.00, plus the percentage 
(if any) by which the average of the 
CPI for the 12-month period ending 
with June of the preceding fiscal year 
exceeds the average of the CPI for the 
12-month period ending with June 
1996, expressed as a decimal; and 
‘‘(III) 1.00, plus the percentage 
(if any) by which the most recent esti-
mate by the Bureau of the Census of 
the population of the State that has 
not attained 18 years of age exceeds 
the most recent estimate by the Bu-
reau of the Census of that population 
as of July 1, 1996, expressed as a 
decimal. 
‘‘(iii) CPI DEFINED.—In clause (ii), 
the term ‘CPI’ means the last Consumer 
Price Index for All Urban Consumers pub-
lished by the Department of Labor for the 
period involved. 
‘‘(C) APPROPRIATION.—Out of any money 
in the Treasury of the United States not other-
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wise appropriated, there are appropriated such 
sums as are necessary for grants under this 
paragraph for each fiscal year.’’. 
(2) CONFORMING AMENDMENT TO ELIMINATE 
SUPPLEMENTAL
GRANTS
FOR
POPULATION
IN-
CREASES IN CERTAIN STATES.—Section 403(a) (42 
U.S.C. 603(a)) is amended by striking paragraph 
(3). 
(b) PENALTY FOR FAILURE TO MAINTAIN EFFORT 
ADJUSTED
FOR
INFLATION.—Section 409(a)(7) (42 
U.S.C. 609(a)(7)) is amended— 
(1) in subparagraph (A), by inserting ‘‘the in-
flation-adjusted’’ before ‘‘historic State expendi-
tures’’; and 
(2) in subparagraph (B), by redesignating 
clauses (iii) through (v) as clauses (iv) through (vi), 
respectively, and inserting after clause (ii) the fol-
lowing: 
‘‘(iii) INFLATION-ADJUSTED HISTORIC 
STATE EXPENDITURES.—The term ‘infla-
tion-adjusted historic State expenditures’ 
means, with respect to a fiscal year— 
‘‘(I) historic State expenditures; 
multiplied by 
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‘‘(II) 1.00, plus (in the case of 
fiscal year 2018 or any succeeding fis-
cal year) the percentage (if any) by 
which the average of the CPI (as de-
fined in section 403(a)(1)(B)(iii)) for 
the 12-month period ending with June 
of the preceding fiscal year exceeds 
the average of the CPI (as so defined) 
for the 12-month period ending with 
June 2016, expressed as a decimal.’’. 
(c) MODIFICATION OF CONTINGENCY FUND.— 
(1) IN GENERAL.—Section 403(b) (42 U.S.C. 
603(b)) is amended by striking all that follows para-
graph (1) and inserting the following: 
‘‘(2) GRANTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make a grant to each eligible State and each 
Indian tribe that is an economically needy enti-
ty for a calendar quarter, in an amount equal 
to 80 percent of the amount (if any) by which 
the total amount of relevant expenditures of the 
entity for the quarter exceeds the total amount 
of the relevant expenditures of the entity for 
the corresponding quarter in the base year of 
the entity, subject to paragraph (2). 
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164 
‘‘(B) LIMITATION.—The total amount pay-
able to an entity under this subsection for a fis-
cal year shall not exceed an amount equal to 25 
percent of the amount payable to the entity— 
‘‘(i) if the entity is a State, under sec-
tion 403(a)(1) for the fiscal year; or 
‘‘(ii) if the entity is an Indian tribe, 
under section 412(a)(1) for the fiscal year. 
‘‘(3) DEFINITIONS.—In paragraph (2): 
‘‘(A) ECONOMICALLY
NEEDY
ENTITY.— 
The term ‘economically needy entity’ means an 
entity with respect to a calendar quarter— 
‘‘(i) if the seasonally adjusted average 
unemployment rate with respect to the en-
tity for the quarter or any of the preceding 
4 calendar quarters exceeds 6.5 percent; or 
‘‘(ii) in the case that the unemploy-
ment rate information described in clause 
(i) is not available with respect to the enti-
ty, if the entity meets such qualifications 
as the Secretary, in consultation with the 
Secretary of Labor, shall, by regulation, 
prescribe. 
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‘‘(B) BASE YEAR.—The term ‘base year’ 
means, with respect to an entity, and a cal-
endar quarter in a fiscal year— 
‘‘(i) except as provided in clause (ii), 
whichever of the 2 fiscal years most re-
cently preceding the first fiscal year of the 
most recent contingency fund eligibility pe-
riod for the entity, is the fiscal year in 
which the relevant expenditures of the enti-
ty were the lesser; or 
‘‘(ii) if the first year of the period re-
ferred to in clause (i) is fiscal year 2018, 
whichever of fiscal year 2007 or 2008 is 
the fiscal year in which the relevant ex-
penditures of the entity were the lesser. 
‘‘(C) CONTINGENCY FUND ELIGIBILITY PE-
RIOD.—The term ‘contingency fund eligibility 
period’ means, with respect to an entity, a pe-
riod of 1 or more consecutive calendar quarters 
for which the entity is an economically needy 
entity. 
‘‘(D) RELEVANT EXPENDITURES.— 
‘‘(i) IN GENERAL.—The term ‘relevant 
expenditures’ means expenditures— 
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‘‘(ii) CHILD CARE EXPENDITURES.— 
For purposes of clause (i), expenditures for 
child care consist of the following: 
‘‘(I) Amounts transferred under 
section 404(d)(1)(B). 
‘‘(II) Expenditures for child care 
assistance from Federal funds pro-
vided under this part. 
‘‘(III) In the case of an entity 
that is a State, expenditures for child 
care assistance that are qualified 
State expenditures (as defined in sec-
tion 409(a)(7)(B)(i)), but only to the 
extent exceeding the total expendi-
tures of the State (other than from 
Federal funds) for child care in fiscal 
year 1994 or 1995 (whichever is the 
greater). 
‘‘(iii) AUTHORITY
TO
COLLECT
AND 
ADJUST
DATA.—In 
determining 
the 
amount of the expenditures of a State for 
basic assistance, child care, and subsidized 
employment, during any period for which 
the State requests funds under this sub-
section, and during the base year of the 
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168 
State, the Secretary may make appropriate 
adjustments to the data, on a State-by- 
State basis, to ensure that the data are 
comparable with respect to the groups of 
families served and the types of aid pro-
vided. The Secretary may develop a mecha-
nism for collecting expenditure data, in-
cluding procedures which allow States to 
make reasonable estimates, and may set 
deadlines for making revisions to the data. 
‘‘(4) USE OF GRANT.—Each State to which a 
grant is made under this subsection shall use the 
grant to serve areas of the State with the greatest 
need (as referred to in section 402(a)(1)(A)). 
‘‘(5) APPROPRIATION.— 
‘‘(A) IN GENERAL.—Out of any funds in 
the Treasury of the United States not otherwise 
appropriated, there are appropriated for pay-
ment to the Fund— 
‘‘(i) $2,500,000,000 for fiscal year 
2018; and 
‘‘(ii) for each succeeding fiscal year, 
the amount appropriated under this para-
graph for the then preceding fiscal year, 
increased by the percentage (if any) by 
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169 
which the amount appropriated under sec-
tion 403(a)(1) for the fiscal year involved 
exceeds the amount appropriated under 
such section for the then preceding fiscal 
year. 
‘‘(B) 
AVAILABILITY.—Amounts 
made 
available under this paragraph for a fiscal year 
shall remain available until expended. 
‘‘(6) ACTIONS TO BE TAKEN IN ANTICIPATION 
OF
EXHAUSTION
OF
FUND.—The Secretary shall 
monitor the amount in, and the rate at which 
amounts are paid from, the Fund, and if the Sec-
retary determines that the Fund will be exhausted 
within 6 months, the Secretary shall— 
‘‘(A) notify the Congress of the determina-
tion; and 
‘‘(B) develop and communicate to each 
State and Indian tribe that is an economically 
needy entity as of the date of the determina-
tion, the procedure for allocating amounts in 
the Fund among such entities.’’. 
(2) ELIMINATION OF PENALTY FOR FAILURE 
OF STATE RECEIVING AMOUNTS FROM CONTINGENCY 
FUND TO MAINTAIN 100 PERCENT OF HISTORIC EF-
FORT.— 
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