HR 6893 RDS 
‘‘(iii) FISCAL
YEAR
2012, 2013, OR 
2014.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II) of this 
clause and clause (v) of this subpara-
graph, with respect to amounts ex-
pended during any fiscal year quarter 
beginning after September 30, 2011, 
and before October 1, 2014, for which 
the tribe, organization, or consortium 
is eligible for payments under any 
subparagraph of section 474(a)(3) of 
this Act, the only in-kind expenditures 
from third-party sources that may be 
claimed by the tribe, organization, or 
consortium for purposes of deter-
mining the non-Federal share of such 
expenditures 
(without 
regard 
to 
whether the expenditures are specified 
on the list required under this sub-
paragraph to be submitted with the 
plan) are in-kind expenditures that 
are specified in regulations promul-
gated by the Secretary under section 
301(e)(2) of the Fostering Connec-
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tions to Success and Increasing Adop-
tions Act of 2008 and are from an ap-
plicable third-party source specified in 
such regulations, and do not exceed 
the applicable percentage for claiming 
such in-kind expenditures specified in 
the regulations. 
‘‘(II) TRANSITION
PERIOD
FOR 
EARLY APPROVED TRIBES, ORGANIZA-
TIONS, OR
CONSORTIA.—Subject to 
clause (v), if the tribe, organization, 
or consortium is an early approved 
tribe, organization, or consortium (as 
defined in subclause (III) of this 
clause), the Secretary shall not re-
quire the tribe, organization, or con-
sortium to comply with such regula-
tions before October 1, 2013. Until 
the earlier of the date such tribe, or-
ganization, or consortium comes into 
compliance with such regulations or 
October 1, 2013, the limitations on 
the claiming of in-kind expenditures 
from third-party sources under clause 
(ii) shall continue to apply to such 
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tribe, organization, or consortium 
(without regard to fiscal limitation) 
for purposes of determining the non- 
Federal share of amounts expended by 
the tribe, organization, or consortium 
during any fiscal year quarter that be-
gins after September 30, 2011, and 
before such date of compliance or Oc-
tober 1, 2013, whichever is earlier. 
‘‘(III) DEFINITION OF EARLY AP-
PROVED
TRIBE, ORGANIZATION, OR 
CONSORTIUM.—For purposes of sub-
clause (II) of this clause, the term 
‘early approved tribe, organization, or 
consortium’ means an Indian tribe, 
tribal organization, or tribal consor-
tium that had a plan approved under 
section 471 in accordance with this 
section for any quarter of fiscal year 
2010 or 2011. 
‘‘(iv) FISCAL YEAR 2015 AND THERE-
AFTER.—Subject to clause (v) of this sub-
paragraph, with respect to amounts ex-
pended during any fiscal year quarter be-
ginning after September 30, 2014, for 
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which the tribe, organization, or consor-
tium is eligible for payments under any 
subparagraph of section 474(a)(3) of this 
Act, in-kind expenditures from third-party 
sources may be claimed for purposes of de-
termining the non-Federal share of ex-
penditures under any subparagraph of 
such section 474(a)(3) only in accordance 
with the regulations promulgated by the 
Secretary under section 301(e)(2) of the 
Fostering Connections to Success and In-
creasing Adoptions Act of 2008. 
‘‘(v) CONTINGENCY RULE.—If, at the 
time expenditures are made for a fiscal 
year quarter beginning after September 
30, 2011, and before October 1, 2014, for 
which a tribe, organization, or consortium 
may receive payments for under section 
474(a)(3) of this Act, no regulations re-
quired to be promulgated under section 
301(e)(2) of the Fostering Connections to 
Success and Increasing Adoptions Act of 
2008 are in effect, and no legislation has 
been enacted specifying otherwise— 
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‘‘(I) in the case of any quarter of 
fiscal year 2012, 2013, or 2014, the 
limitations on claiming in-kind ex-
penditures from third-party sources 
under clause (ii) of this subparagraph 
shall apply (without regard to fiscal 
limitation) for purposes of deter-
mining the non-Federal share of such 
expenditures; and 
‘‘(II) in the case of any quarter 
of fiscal year 2015 or any fiscal year 
thereafter, no tribe, organization, or 
consortium may claim in-kind expend-
itures from third-party sources for 
purposes of determining the non-Fed-
eral share of such expenditures if a 
State with a plan approved under sec-
tion 471(a) of this Act could not 
claim in-kind expenditures from third- 
party sources for such purposes. 
‘‘(2) CLARIFICATION OF TRIBAL AUTHORITY TO 
ESTABLISH STANDARDS FOR TRIBAL FOSTER FAM-
ILY
HOMES
AND
TRIBAL
CHILD
CARE
INSTITU-
TIONS.—For purposes of complying with section 
471(a)(10), an Indian tribe, tribal organization, or 
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tribal consortium shall establish and maintain a trib-
al authority or authorities which shall be responsible 
for establishing and maintaining tribal standards for 
tribal foster family homes and tribal child care insti-
tutions. 
‘‘(3) CONSORTIUM.—The participating Indian 
tribes or tribal organizations of a tribal consortium 
may develop and submit a single plan under section 
471 that meets the requirements of this section. 
‘‘(d) DETERMINATION OF FEDERAL MEDICAL AS-
SISTANCE PERCENTAGE
FOR FOSTER CARE MAINTE-
NANCE AND ADOPTION ASSISTANCE PAYMENTS.— 
‘‘(1) PER CAPITA INCOME.—For purposes of de-
termining the Federal medical assistance percentage 
applicable to an Indian tribe, a tribal organization, 
or a tribal consortium under paragraphs (1), (2), 
and (5) of section 474(a), the calculation of the per 
capita income of the Indian tribe, tribal organiza-
tion, or tribal consortium shall be based upon the 
service population of the Indian tribe, tribal organi-
zation, or tribal consortium, except that in no case 
shall an Indian tribe, a tribal organization, or a trib-
al consortium receive less than the Federal medical 
assistance percentage for any State in which the 
tribe, organization, or consortium is located. 
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‘‘(2) CONSIDERATION
OF
OTHER
INFORMA-
TION.—Before making a calculation under para-
graph (1), the Secretary shall consider any informa-
tion submitted by an Indian tribe, a tribal organiza-
tion, or a tribal consortium that the Indian tribe, 
tribal organization, or tribal consortium considers 
relevant to making the calculation of the per capita 
income of the Indian tribe, tribal organization, or 
tribal consortium. 
‘‘(e) NONAPPLICATION
TO COOPERATIVE AGREE-
MENTS AND CONTRACTS.—Any cooperative agreement or 
contract entered into between an Indian tribe, a tribal or-
ganization, or a tribal consortium and a State for the ad-
ministration or payment of funds under this part that is 
in effect as of the date of enactment of this section shall 
remain in full force and effect, subject to the right of ei-
ther party to the agreement or contract to revoke or mod-
ify the agreement or contract pursuant to the terms of 
the agreement or contract. Nothing in this section shall 
be construed as affecting the authority for an Indian tribe, 
a tribal organization, or a tribal consortium and a State 
to enter into a cooperative agreement or contract for the 
administration or payment of funds under this part. 
‘‘(f) JOHN H. CHAFEE FOSTER CARE INDEPEND-
ENCE PROGRAM.—Except as provided in section 477(j), 
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subsection (b) of this section shall not apply with respect 
to the John H. Chafee Foster Care Independence Program 
established under section 477 (or with respect to payments 
made under section 474(a)(4) or grants made under sec-
tion 474(e)). 
‘‘(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed as affecting the application of sec-
tion 472(h) to a child on whose behalf payments are paid 
under section 472, or the application of section 473(b) to 
a child on whose behalf payments are made under section 
473 pursuant to an adoption assistance agreement or a 
kinship guardianship assistance agreement, by an Indian 
tribe, tribal organization, or tribal consortium that elects 
to operate a foster care and adoption assistance program 
in accordance with this section.’’. 
(2) 
CONFORMING
AMENDMENTS.—Section 
472(a)(2)(B) of such Act (42 U.S.C. 672(a)(2)(B)) 
is amended— 
(A) in clause (i), by striking ‘‘or’’ at the 
end; 
(B) in clause (ii), by striking ‘‘and’’ at the 
end and inserting ‘‘or’’; and 
(C) by adding at the end the following: 
‘‘(iii) an Indian tribe or a tribal orga-
nization (as defined in section 479B(a)) or 
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a tribal consortium that has a plan ap-
proved under section 471 in accordance 
with section 479B; and’’. 
(b) AUTHORITY TO RECEIVE PORTION OF STATE AL-
LOTMENT AS PART OF AN AGREEMENT TO OPERATE THE 
JOHN H. CHAFEE FOSTER CARE INDEPENDENCE PRO-
GRAM.—Section 477 of such Act (42 U.S.C. 677) is 
amended by adding at the end the following: 
‘‘(j) AUTHORITY FOR AN INDIAN TRIBE, TRIBAL OR-
GANIZATION, OR TRIBAL CONSORTIUM TO RECEIVE AN 
ALLOTMENT.— 
‘‘(1) IN GENERAL.—An Indian tribe, tribal or-
ganization, or tribal consortium with a plan ap-
proved under section 479B, or which is receiving 
funding to provide foster care under this part pursu-
ant to a cooperative agreement or contract with a 
State, may apply for an allotment out of any funds 
authorized by paragraph (1) or (2) (or both) of sub-
section (h) of this section. 
‘‘(2) APPLICATION.—A tribe, organization, or 
consortium desiring an allotment under paragraph 
(1) of this subsection shall submit an application to 
the Secretary to directly receive such allotment that 
includes a plan which— 
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‘‘(A) satisfies such requirements of para-
graphs (2) and (3) of subsection (b) as the Sec-
retary determines are appropriate; 
‘‘(B) contains a description of the tribe’s, 
organization’s, or consortium’s consultation 
process regarding the programs to be carried 
out under the plan with each State for which a 
portion of an allotment under subsection (c) 
would be redirected to the tribe, organization, 
or consortium; and 
‘‘(C) contains an explanation of the results 
of such consultation, particularly with respect 
to— 
‘‘(i) determining the eligibility for 
benefits and services of Indian children to 
be served under the programs to be carried 
out under the plan; and 
‘‘(ii) the process for consulting with 
the State in order to ensure the continuity 
of benefits and services for such children 
who will transition from receiving benefits 
and services under programs carried out 
under a State plan under subsection (b)(2) 
to receiving benefits and services under 
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programs carried out under a plan under 
this subsection. 
‘‘(3) PAYMENTS.—The Secretary shall pay an 
Indian tribe, tribal organization, or tribal consortium 
with an application and plan approved under this 
subsection from the allotment determined for the 
tribe, organization, or consortium under paragraph 
(4) of this subsection in the same manner as is pro-
vided in section 474(a)(4) (and, where requested, 
and if funds are appropriated, section 474(e)) with 
respect to a State, or in such other manner as is de-
termined appropriate by the Secretary, except that 
in no case shall an Indian tribe, a tribal organiza-
tion, or a tribal consortium receive a lesser propor-
tion of such funds than a State is authorized to re-
ceive under those sections. 
‘‘(4) ALLOTMENT.—From the amounts allotted 
to a State under subsection (c) of this section for a 
fiscal year, the Secretary shall allot to each Indian 
tribe, tribal organization, or tribal consortium with 
an application and plan approved under this sub-
section for that fiscal year an amount equal to the 
tribal foster care ratio determined under paragraph 
(5) of this subsection for the tribe, organization, or 
consortium multiplied by the allotment amount of 
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the State within which the tribe, organization, or 
consortium is located. The allotment determined 
under this paragraph is deemed to be a part of the 
allotment determined under section 477(c) for the 
State in which the Indian tribe, tribal organization, 
or tribal consortium is located. 
‘‘(5) TRIBAL FOSTER CARE RATIO.—For pur-
poses of paragraph (4), the tribal foster care ratio 
means, with respect to an Indian tribe, tribal organi-
zation, or tribal consortium, the ratio of— 
‘‘(A) the number of children in foster care 
under the responsibility of the Indian tribe, 
tribal organization, or tribal consortium (either 
directly or under supervision of the State), in 
the most recent fiscal year for which the infor-
mation is available; to 
‘‘(B) the sum of— 
‘‘(i) the total number of children in 
foster care under the responsibility of the 
State within which the Indian tribe, tribal 
organization, or tribal consortium is lo-
cated; and 
‘‘(ii) the total number of children in 
foster care under the responsibility of all 
Indian tribes, tribal organizations, or tribal 
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consortia in the State (either directly or 
under supervision of the State) that have 
a plan approved under this subsection.’’. 
(c) STATE AND TRIBAL COOPERATION.— 
(1) STATE PLAN REQUIREMENT TO NEGOTIATE 
IN GOOD FAITH.— 
(A) IN GENERAL.—Section 471(a) of the 
Social Security Act (42 U.S.C. 671(a)), as 
amended by sections 101(a), 103, 204(b), and 
206 of this Act, is amended— 
(i) by striking ‘‘and’’ at the end of 
paragraph (30); 
(ii) by striking the period at the end 
of paragraph (31) and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(32) provides that the State will negotiate in 
good faith with any Indian tribe, tribal organization 
or tribal consortium in the State that requests to de-
velop an agreement with the State to administer all 
or part of the program under this part on behalf of 
Indian children who are under the authority of the 
tribe, organization, or consortium, including foster 
care maintenance payments on behalf of children 
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who are placed in State or tribally licensed foster 
family homes, adoption assistance payments, and, if 
the State has elected to provide such payments, kin-
ship guardianship assistance payments under section 
473(d), and tribal access to resources for adminis-
tration, training, and data collection under this 
part.’’. 
(B) 
CHAFEE
PROGRAM
CONFORMING 
AMENDMENT.—Section 477(b)(3)(G) of such 
Act (42 U.S.C. 677(b)(3)(G)) is amended— 
(i) by striking ‘‘and that’’ and insert-
ing ‘‘that’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and that the State will ne-
gotiate in good faith with any Indian tribe, 
tribal organization, or tribal consortium in 
the State that does not receive an allot-
ment under subsection (j)(4) for a fiscal 
year and that requests to develop an agree-
ment with the State to administer, super-
vise, or oversee the programs to be carried 
out under the plan with respect to the In-
dian children who are eligible for such pro-
grams and who are under the authority of 
the tribe, organization, or consortium and 
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to receive from the State an appropriate 
portion of the State allotment under sub-
section (c) for the cost of such administra-
tion, supervision, or oversight.’’. 
(2) APPLICATION OF TRIBAL FEDERAL MATCH-
ING RATE TO COOPERATIVE AGREEMENTS OR CON-
TRACTS BETWEEN STATE OR TRIBES.—Paragraphs 
(1) and (2) of section 474(a) of such Act (42 U.S.C. 
674(a)) are each amended by inserting ‘‘(or, with re-
spect to such payments made during such quarter 
under a cooperative agreement or contract entered 
into by the State and an Indian tribe, tribal organi-
zation, or tribal consortium for the administration or 
payment of funds under this part, an amount equal 
to the Federal medical assistance percentage that 
would apply under section 479B(d) (in this para-
graph referred to as the ‘tribal FMAP’) if such In-
dian tribe, tribal organization, or tribal consortium 
made such payments under a program operated 
under that section, unless the tribal FMAP is less 
than the Federal medical assistance percentage that 
applies to the State)’’ before the semicolon. 
(d) RULES
OF CONSTRUCTION.—Nothing in the 
amendments made by this section shall be construed as— 
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(1) authorization to terminate funding on be-
half of any Indian child receiving foster care mainte-
nance payments or adoption assistance payments on 
the date of enactment of this Act and for which the 
State receives Federal matching payments under 
paragraph (1) or (2) of section 474(a) of the Social 
Security Act (42 U.S.C. 674(a)), regardless of 
whether a cooperative agreement or contract be-
tween the State and an Indian tribe, tribal organiza-
tion, or tribal consortium is in effect on such date 
or an Indian tribe, tribal organization, or tribal con-
sortium elects subsequent to such date to operate a 
program under section 479B of such Act (as added 
by subsection (a) of this section); or 
(2) affecting the responsibility of a State— 
(A) as part of the plan approved under 
section 471 of the Social Security Act (42 
U.S.C. 671), to provide foster care maintenance 
payments, adoption assistance payments, and if 
the State elects, kinship guardianship assist-
ance payments, for Indian children who are eli-
gible for such payments and who are not other-
wise being served by an Indian tribe, tribal or-
ganization, or tribal consortium pursuant to a 
program under such section 479B of such Act 
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or a cooperative agreement or contract entered 
into between an Indian tribe, a tribal organiza-
tion, or a tribal consortium and a State for the 
administration or payment of funds under part 
E of title IV of such Act; or 
(B) as part of the plan approved under 
section 477 of such Act (42 U.S.C. 677) to ad-
minister, supervise, or oversee programs carried 
out under that plan on behalf of Indian children 
who are eligible for such programs if such chil-
dren are not otherwise being served by an In-
dian tribe, tribal organization, or tribal consor-
tium pursuant to an approved plan under sec-
tion 477(j) of such Act or a cooperative agree-
ment or contract entered into under section 
477(b)(3)(G) of such Act. 
(e) REGULATIONS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2) of this subsection, not later than 1 year 
after the date of enactment of this section, the Sec-
retary of Health and Human Services, in consulta-
tion with Indian tribes, tribal organizations, tribal 
consortia, and affected States, shall promulgate in-
terim final regulations to carry out this section and 
the amendments made by this section. Such regula-
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tions shall include procedures to ensure that a trans-
fer of responsibility for the placement and care of a 
child under a State plan approved under section 471 
of the Social Security Act to a tribal plan approved 
under section 471 of such Act in accordance with 
section 479B of such Act (as added by subsection 
(a)(1) of this section) or to an Indian tribe, a tribal 
organization, or a tribal consortium that has entered 
into a cooperative agreement or contract with a 
State for the administration or payment of funds 
under part E of title IV of such Act does not affect 
the eligibility of, provision of services for, or the 
making of payments on behalf of, such children 
under part E of title IV of such Act, or the eligi-
bility of such children for medical assistance under 
title XIX of such Act. 
(2) IN-KIND
EXPENDITURES
FROM
THIRD- 
PARTY SOURCES FOR PURPOSES OF DETERMINING 
NON-FEDERAL
SHARE
OF
ADMINISTRATIVE
AND 
TRAINING EXPENDITURES.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B) of this paragraph, not later than 
September 30, 2011, the Secretary of Health 
and Human Services, in consultation with In-
dian tribes, tribal organizations, and tribal con-
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sortia, shall promulgate interim final regula-
tions specifying the types of in-kind expendi-
tures, including plants, equipment, administra-
tion, and services, and the third-party sources 
for such in-kind expenditures which may be 
claimed by tribes, organizations, and consortia 
with plans approved under section 471 of the 
Social Security Act in accordance with section 
479B of such Act, up to such percentages as 
the Secretary, in such consultation shall specify 
in such regulations, for purposes of determining 
the non-Federal share of administrative and 
training expenditures for which the tribes, orga-
nizations, and consortia may receive payments 
for 
under 
any 
subparagraph 
of 
section 
474(a)(3) of such Act. 
(B) EFFECTIVE DATE.—In no event shall 
the regulations required to be promulgated 
under subparagraph (A) take effect prior to Oc-
tober 1, 2011. 
(C) SENSE OF THE CONGRESS.—It is the 
sense of the Congress that if the Secretary of 
Health and Human Services fails to publish in 
the Federal Register the regulations required 
under subparagraph (A) of this paragraph, the 
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Congress should enact legislation specifying the 
types of in-kind expenditures and the third- 
party sources for such in-kind expenditures 
which may be claimed by tribes, organizations, 
and consortia with plans approved under sec-
tion 471 of the Social Security Act in accord-
ance with section 479B of such Act, up to spe-
cific percentages, for purposes of determining 
the non-Federal share of administrative and 
training expenditures for which the tribes, orga-
nizations, and consortia may receive payments 
for 
under 
any 
subparagraph 
of 
section 
474(a)(3) of such Act. 
(f) EFFECTIVE DATE.—The amendments made by 
subsections (a), (b), and (c) shall take effect on October 
1, 2009, without regard to whether the regulations re-
quired under subsection (e)(1) have been promulgated by 
such date. 
SEC. 302. TECHNICAL ASSISTANCE AND IMPLEMENTATION. 
Section 476 of the Social Security Act (42 U.S.C. 
676) is amended by adding at the end the following: 
‘‘(c) TECHNICAL ASSISTANCE AND IMPLEMENTATION 
SERVICES FOR TRIBAL PROGRAMS.— 
‘‘(1) AUTHORITY.—The Secretary shall provide 
technical assistance and implementation services 
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that are dedicated to improving services and perma-
nency outcomes for Indian children and their fami-
lies through the provision of assistance described in 
paragraph (2). 
‘‘(2) ASSISTANCE PROVIDED.— 
‘‘(A) IN GENERAL.—The technical assist-
ance and implementation services shall be to— 
‘‘(i) provide information, advice, edu-
cational materials, and technical assistance 
to Indian tribes and tribal organizations 
with respect to the types of services, ad-
ministrative functions, data collection, pro-
gram management, and reporting that are 
required under State plans under part B 
and this part; 
‘‘(ii) assist and provide technical as-
sistance to— 
‘‘(I) Indian tribes, tribal organi-
zations, and tribal consortia seeking 
to operate a program under part B or 
under this part through direct appli-
cation to the Secretary under section 
479B; and 
‘‘(II) Indian tribes, tribal organi-
zations, tribal consortia, and States 
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seeking to develop cooperative agree-
ments to provide for payments under 
this part or satisfy the requirements 
of section 422(b)(9), 471(a)(32), or 
477(b)(3)(G); and 
‘‘(iii) subject to subparagraph (B), 
make one-time grants, to tribes, tribal or-
ganizations, or tribal consortia that are 
seeking to develop, and intend, not later 
than 24 months after receiving such a 
grant to submit to the Secretary a plan 
under section 471 to implement a program 
under this part as authorized by section 
479B, that shall— 
‘‘(I) not exceed $300,000; and 
‘‘(II) be used for the cost of de-
veloping a plan under section 471 to 
carry out a program under section 
479B, including costs related to devel-
opment of necessary data collection 
systems, a cost allocation plan, agency 
and tribal court procedures necessary 
to meet the case review system re-
quirements under section 475(5), or 
any other costs attributable to meet-
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ing any other requirement necessary 
for approval of such a plan under this 
part. 
‘‘(B) GRANT CONDITION.— 
‘‘(i) IN GENERAL.—As a condition of 
being paid a grant under subparagraph 
(A)(iii), a tribe, tribal organization, or trib-
al consortium shall agree to repay the total 
amount of the grant awarded if the tribe, 
tribal organization, or tribal consortium 
fails to submit to the Secretary a plan 
under section 471 to carry out a program 
under section 479B by the end of the 24- 
month period described in that subpara-
graph. 
‘‘(ii) 
EXCEPTION.—The 
Secretary 
shall waive the requirement to repay a 
grant imposed by clause (i) if the Sec-
retary determines that a tribe’s, tribal or-
ganization’s, or tribal consortium’s failure 
to submit a plan within such period was 
the result of circumstances beyond the con-
trol of the tribe, tribal organization, or 
tribal consortium. 
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‘‘(C) IMPLEMENTATION AUTHORITY.—The 
Secretary may provide the technical assistance 
and implementation services described in sub-
paragraph (A) either directly or through a 
grant or contract with public or private organi-
zations knowledgeable and experienced in the 
field of Indian tribal affairs and child welfare. 
‘‘(3) APPROPRIATION.—There is appropriated 
to the Secretary, out of any money in the Treasury 
of the United States not otherwise appropriated, 
$3,000,000 for fiscal year 2009 and each fiscal year 
thereafter to carry out this subsection.’’. 
TITLE IV—IMPROVEMENT OF 
INCENTIVES FOR ADOPTION 
SEC. 401. ADOPTION INCENTIVES PROGRAM. 
(a) 5-YEAR EXTENSION.—Section 473A of the Social 
Security Act (42 U.S.C. 673b) is amended— 
(1) in subsection (b)(4), by striking ‘‘in the 
case of fiscal years 2001 through 2007,’’; 
(2) in subsection (b)(5), by striking ‘‘1998 
through 2007’’ and inserting ‘‘2008 through 2012’’; 
(3) in subsection (c)(2), by striking ‘‘each of 
fiscal years 2002 through 2007’’ and inserting ‘‘a 
fiscal year’’; and 
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(4) in each of subsections (h)(1)(D), and (h)(2), 
by striking ‘‘2008’’ and inserting ‘‘2013’’. 
(b) UPDATING OF FISCAL YEAR USED IN DETER-
MINING
BASE
NUMBERS
OF
ADOPTIONS.—Section 
473A(g) of such Act (42 U.S.C. 673b(g)) is amended— 
(1) in paragraph (3), by striking ‘‘means’’ and 
all that follows and inserting ‘‘means, with respect 
to any fiscal year, the number of foster child adop-
tions in the State in fiscal year 2007.’’; 
(2) in paragraph (4)— 
(A) by inserting ‘‘that are not older child 
adoptions’’ before ‘‘for a State’’; and 
(B) by striking ‘‘means’’ and all that fol-
lows and inserting ‘‘means, with respect to any 
fiscal year, the number of special needs adop-
tions that are not older child adoptions in the 
State in fiscal year 2007.’’; and 
(3) in paragraph (5), by striking ‘‘means’’ and 
all that follows and inserting ‘‘means, with respect 
to any fiscal year, the number of older child adop-
tions in the State in fiscal year 2007.’’. 
(c) INCREASE IN INCENTIVE PAYMENTS FOR SPE-
CIAL NEEDS ADOPTIONS
AND OLDER CHILD ADOP-
TIONS.—Section 473A(d)(1) of such Act (42 U.S.C. 
673b(d)(1)) is amended— 
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‘‘(BB) a voluntary placement agree-
ment or voluntary relinquishment; 
‘‘(bb) meets all medical or disability re-
quirements of title XVI with respect to eligi-
bility for supplemental security income benefits; 
or 
‘‘(cc) was residing in a foster family home 
or child care institution with the child’s minor 
parent, and the child’s minor parent was in 
such foster family home or child care institution 
pursuant to— 
‘‘(AA) an involuntary removal of the 
child from the home in accordance with a 
judicial determination to the effect that 
continuation in the home would be con-
trary to the welfare of the child; or 
‘‘(BB) a voluntary placement agree-
ment or voluntary relinquishment; and 
‘‘(II) has been determined by the State, 
pursuant to subsection (c)(2), to be a child with 
special needs.’’; and 
(ii) in subparagraph (C)— 
(I) by redesignating subclauses 
(I) and (II) of clause (iii) as items 
(aa) and (bb), respectively; 
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(II) by redesignating subclauses 
(I) and (II) of clause (iv) as items 
(aa) and (bb), respectively; 
(III) by redesignating clauses (i) 
through (iv) as subclauses (I) through 
(IV), respectively; 
(IV) by realigning the margins of 
the subclauses and clauses redesig-
nated by subclauses (I) through (III) 
accordingly; 
(V) by striking ‘‘if the child—’’ 
and inserting ‘‘if— 
‘‘(i) in the case of a child who is not an applica-
ble child for the fiscal year (as defined in subsection 
(e)), the child—’’; 
(VI) in clause (i)(I) (as so redes-
ignated), by striking ‘‘(A)(ii)’’ and in-
serting ‘‘(A)(i)(II)’’; 
(VII) in clause (i)(IV) (as so re-
designated)— 
(aa) in the matter preceding 
item (aa), by striking ‘‘(A)’’ and 
inserting ‘‘(A)(i)’’; and 
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(bb) by striking the period 
at the end and inserting ‘‘; or’’; 
and 
(VIII) by adding at the end the 
following: 
‘‘(ii) in the case of a child who is an applicable 
child for the fiscal year (as so defined), the child 
meets the requirements of subparagraph (A)(ii)(II), 
is determined eligible for adoption assistance pay-
ments under this part with respect to a prior adop-
tion (or who would have been determined eligible for 
such payments had the Adoption and Safe Families 
Act of 1997 been in effect at the time that such de-
termination would have been made), and is available 
for adoption because the prior adoption has been 
dissolved and the parental rights of the adoptive 
parents have been terminated or because the child’s 
adoptive parents have died.’’; and 
(B) by adding at the end the following: 
‘‘(7)(A) Notwithstanding any other provision of this 
subsection, no payment may be made to parents with re-
spect to any applicable child for a fiscal year that— 
‘‘(i) would be considered a child with special 
needs under subsection (c)(2); 
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‘‘(ii) is not a citizen or resident of the United 
States; and 
‘‘(iii) was adopted outside of the United States 
or was brought into the United States for the pur-
pose of being adopted. 
‘‘(B) Subparagraph (A) shall not be construed as pro-
hibiting payments under this part for an applicable child 
described in subparagraph (A) that is placed in foster care 
subsequent to the failure, as determined by the State, of 
the initial adoption of the child by the parents described 
in subparagraph (A). 
‘‘(8) A State shall spend an amount equal to the 
amount of savings (if any) in State expenditures under 
this part resulting from the application of paragraph 
(2)(A)(ii) to all applicable children for a fiscal year to pro-
vide to children or families any service (including post- 
adoption services) that may be provided under this part 
or part B.’’; 
(2) in subsection (c)— 
(A) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively, 
and realigning the margins accordingly; 
(B) by striking ‘‘this section, a child shall 
not be considered a child with special needs un-
less’’ and inserting ‘‘this section— 
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‘‘(1) in the case of a child who is not an appli-
cable child for a fiscal year, the child shall not be 
considered a child with special needs unless’’; and 
(C) in paragraph (1)(B), as so redesig-
nated, by striking the period at the end and in-
serting ‘‘; or’’; and 
(D) by adding at the end the following: 
‘‘(2) in the case of a child who is an applicable 
child for a fiscal year, the child shall not be consid-
ered a child with special needs unless— 
‘‘(A) the State has determined, pursuant 
to a criterion or criteria established by the 
State, that the child cannot or should not be re-
turned to the home of his parents; 
‘‘(B)(i) the State has determined that 
there exists with respect to the child a specific 
factor or condition (such as ethnic background, 
age, or membership in a minority or sibling 
group, or the presence of factors such as med-
ical conditions or physical, mental, or emotional 
handicaps) because of which it is reasonable to 
conclude that the child cannot be placed with 
adoptive parents without providing adoption as-
sistance under this section and medical assist-
ance under title XIX; or 
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‘‘(ii) the child meets all medical or dis-
ability requirements of title XVI with respect to 
eligibility for supplemental security income ben-
efits; and 
‘‘(C) the State has determined that, except 
where it would be against the best interests of 
the child because of such factors as the exist-
ence of significant emotional ties with prospec-
tive adoptive parents while in the care of the 
parents as a foster child, a reasonable, but un-
successful, effort has been made to place the 
child with appropriate adoptive parents without 
providing adoption assistance under this section 
or medical assistance under title XIX.’’; and 
(3) by adding at the end the following: 
‘‘(e) APPLICABLE CHILD DEFINED.— 
‘‘(1) ON THE BASIS OF AGE.— 
‘‘(A) IN GENERAL.—Subject to paragraphs 
(2) and (3), in this section, the term ‘applicable 
child’ means a child for whom an adoption as-
sistance agreement is entered into under this 
section during any fiscal year described in sub-
paragraph (B) if the child attained the applica-
ble age for that fiscal year before the end of 
that fiscal year. 
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entered into on behalf of the child under this section 
without regard to whether the child is described in 
paragraph (2)(A) of this subsection if the child— 
‘‘(A) is a sibling of a child who is an appli-
cable child for the fiscal year under paragraph 
(1) or (2) of this subsection; 
‘‘(B) is to be placed in the same adoption 
placement as an applicable child for the fiscal 
year who is their sibling; and 
‘‘(C) meets the requirements of subsection 
(a)(2)(A)(ii).’’. 
SEC. 403. INFORMATION ON ADOPTION TAX CREDIT. 
Section 471(a) of the Social Security Act (42 U.S.C. 
671(a)), as amended by sections 101(a), 103, 204(b), 206, 
and 301(c)(1)(A) of this Act, is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(31); 
(2) by striking the period at the end of para-
graph (32) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(33) provides that the State will inform any 
individual who is adopting, or whom the State is 
made aware is considering adopting, a child who is 
in foster care under the responsibility of the State 
of the potential eligibility of the individual for a 
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Federal tax credit under section 23 of the Internal 
Revenue Code of 1986.’’. 
TITLE 
V—CLARIFICATION 
OF 
UNIFORM 
DEFINITION 
OF 
CHILD AND OTHER PROVI-
SIONS 
SEC. 501. CLARIFICATION OF UNIFORM DEFINITION OF 
CHILD. 
(a) CHILD MUST BE YOUNGER THAN CLAIMANT.— 
Section 152(c)(3)(A) of the Internal Revenue Code of 
1986 is amended by inserting ‘‘is younger than the tax-
payer claiming such individual as a qualifying child and’’ 
after ‘‘such individual’’. 
(b) 
CHILD
MUST
BE
UNMARRIED.—Section 
152(c)(1) of such Code is amended by striking ‘‘and’’ at 
the end of subparagraph (C), by striking the period at the 
end of subparagraph (D) and inserting ‘‘, and’’, and by 
adding at the end the following new subparagraph: 
‘‘(E) who has not filed a joint return 
(other than only for a claim of refund) with the 
individual’s spouse under section 6013 for the 
taxable year beginning in the calendar year in 
which the taxable year of the taxpayer begins.’’. 
(c) RESTRICT QUALIFYING CHILD TAX BENEFITS TO 
CHILD’S PARENT.— 
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(1) CHILD TAX CREDIT.—Section 24(a) of such 
Code is amended by inserting ‘‘for which the tax-
payer is allowed a deduction under section 151’’ 
after ‘‘of the taxpayer’’. 
(2) PERSONS OTHER THAN PARENTS CLAIMING 
QUALIFYING CHILD.— 
(A) IN
GENERAL.—Section 152(c)(4) of 
such Code is amended by adding at the end the 
following new subparagraph: 
‘‘(C) NO
PARENT
CLAIMING
QUALIFYING 
CHILD.—If the parents of an individual may 
claim such individual as a qualifying child but 
no parent so claims the individual, such indi-
vidual may be claimed as the qualifying child of 
another taxpayer but only if the adjusted gross 
income of such taxpayer is higher than the 
highest adjusted gross income of any parent of 
the individual.’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 152(c)(4)(A) of such Code 
is amended by striking ‘‘Except’’ through 
‘‘2 or more taxpayers’’ and inserting ‘‘Ex-
cept as provided in subparagraphs (B) and 
(C), if (but for this paragraph) an indi-
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vidual may be claimed as a qualifying child 
by 2 or more taxpayers’’. 
(ii) The heading for section 152(c)(4) 
of such Code is amended by striking 
‘‘CLAIMING’’ and inserting ‘‘WHO
CAN 
CLAIM THE SAME’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 502. INVESTMENT OF OPERATING CASH. 
Section 323 of title 31, United States Code, is 
amended to read as follows: 
‘‘§ 323. Investment of operating cash 
‘‘(a) To manage United States cash, the Secretary 
of the Treasury may invest any part of the operating cash 
of the Treasury for not more than 90 days. The Secretary 
may invest the operating cash of the Treasury in— 
‘‘(1) obligations of depositories maintaining 
Treasury tax and loan accounts secured by pledged 
collateral acceptable to the Secretary; 
‘‘(2) obligations of the United States Govern-
ment; and 
‘‘(3) repurchase agreements with parties accept-
able to the Secretary. 
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‘‘(b) Subsection (a) of this section does not require 
the Secretary to invest a cash balance held in a particular 
account. 
‘‘(c) The Secretary shall consider the prevailing mar-
ket in prescribing rates of interest for investments under 
subsection (a)(1) of this section. 
‘‘(d)(1) The Secretary of the Treasury shall submit 
each fiscal year to the appropriate committees a report 
detailing the investment of operating cash under sub-
section (a) for the preceding fiscal year. The report shall 
describe the Secretary’s consideration of risks associated 
with investments and the actions taken to manage such 
risks. 
‘‘(2) For purposes of paragraph (1), the term ‘appro-
priate committees’ means the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate.’’. 
SEC. 
503. 
NO 
FEDERAL 
FUNDING 
TO 
UNLAWFULLY 
PRESENT INDIVIDUALS. 
Nothing in this Act shall be construed to alter prohi-
bitions on Federal payments to individuals who are unlaw-
fully present in the United States. 
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TITLE VI—EFFECTIVE DATE 
SEC. 601. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as otherwise provided in 
this Act, each amendment made by this Act to part B or 
E of title IV of the Social Security Act shall take effect 
on the date of the enactment of this Act, and shall apply 
to payments under the part amended for quarters begin-
ning on or after the effective date of the amendment. 
(b) DELAY PERMITTED IF STATE LEGISLATION RE-
QUIRED.—In the case of a State plan approved under part 
B or E of title IV of the Social Security Act which the 
Secretary of Health and Human Services determines re-
quires State legislation (other than legislation appro-
priating funds) in order for the plan to meet the additional 
requirements imposed by this Act, the State plan shall not 
be regarded as failing to comply with the requirements of 
such part solely on the basis of the failure of the plan 
to meet such additional requirements before the 1st day 
of the 1st calendar quarter beginning after the close of 
the 1st regular session of the State legislature that ends 
after the 1-year period beginning with the date of the en-
actment of this Act. For purposes of the preceding sen-
tence, in the case of a State that has a 2-year legislative 
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session, each year of the session is deemed to be a separate 
regular session of the State legislature. 
Passed the House of Representatives September 17, 
2008. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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