I
107TH CONGRESS
2D SESSION
H. R. 4090
To reauthorize and improve the program of block grants to States for
temporary assistance for needy families, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 9, 2002
Mr. HERGER (for himself, Mr. SHAW, Mr. WATKINS of Oklahoma, Mr.
MCCRERY, Mr. ENGLISH, Mr. LEWIS of Kentucky, Ms. DUNN of Wash-
ington, Mr. PORTMAN, Mr. BRADY of Texas, Mr. CAMP, Mr. MCINNIS,
and Mrs. JOHNSON of Connecticut) introduced the following bill; which
was referred to the Committee on Ways and Means
A BILL
To reauthorize and improve the program of block grants
to States for temporary assistance for needy families,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Personal Responsi-
bility, Work, and Family Promotion Act of 2002’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Findings.
TITLE I—TANF
Sec. 101. Purposes.
Sec. 102. Family assistance grants.
Sec. 103. Promotion of family formation and healthy marriage.
Sec. 104. Supplemental grant for population increases in certain States.
Sec. 105. Bonus to reward employment achievement.
Sec. 106. Contingency fund.
Sec. 107. Use of funds.
Sec. 108. Repeal of Federal loan for State welfare programs.
Sec. 109. Universal engagement and family self-sufficiency plan requirements.
Sec. 110. Work participation requirements.
Sec. 111. Maintenance of effort.
Sec. 112. Performance improvement.
Sec. 113. Data collection and reporting.
Sec. 114. Direct funding and administration by Indian tribes.
Sec. 115. Research, evaluations, and national studies.
Sec. 116. Study by the Census Bureau.
Sec. 117. Repeal of waiver continuation authority.
Sec. 118. Definition of assistance.
Sec. 119. Technical corrections.
Sec. 120. Fatherhood program.
TITLE II—CHILD CARE
Sec. 201. Entitlement funding.
TITLE III—CHILD SUPPORT
Sec. 301. Federal matching funds for limited pass through of child support
payments to families receiving TANF.
Sec. 302. State option to pass through all child support payments to families
that formerly received TANF.
Sec. 303. Mandatory review and adjustment of child support orders for families
receiving TANF.
Sec. 304. Mandatory fee for successful child support collection for family that
has never received TANF.
Sec. 305. Report on undistributed child support payments.
Sec. 306. Use of new hire information to assist in administration of unemploy-
ment compensation programs.
Sec. 307. Immigration provisions.
Sec. 308. Decrease in amount of child support arrearage triggering passport
denial.
Sec. 309. Use of tax refund intercept program to collect past-due child support
on behalf of children who are not minors.
Sec. 310. Garnishment of compensation paid to veterans for service-connected
disabilities in order to enforce child support obligations.
Sec. 311. Improving Federal debt collection practices.
Sec. 312. Maintenance of technical assistance funding.
Sec. 313. Maintenance of Federal Parent Locator Service funding.
TITLE IV—CHILD WELFARE
Sec. 401. Extension of authority to approve demonstration projects.
Sec. 402. Elimination of limitation on number of waivers.
Sec. 403. Elimination of limitation on number of States that may be granted
waivers to conduct demonstration projects on same topic.
Sec. 404. Elimination of limitation on number of waivers that may be granted
to a single State for demonstration projects.
Sec. 405. Streamlined process for consideration of amendments to and exten-
sions of demonstration projects requiring waivers.
Sec. 406. Availability of reports.
Sec. 407. Technical correction.
TITLE V—SUPPLEMENTAL SECURITY INCOME
Sec. 501. Review of State agency blindness and disability determinations.
TITLE VI—BROADENED WAIVER AUTHORITY
Sec. 601. State program demonstration projects.
TITLE VII—EFFECTIVE DATE
Sec. 701. Effective date.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the amendment or repeal shall be considered to be
made to a section or other provision of the Social Security
Act.
SEC. 4. FINDINGS.
The Congress makes the following findings:
(1) The Temporary Assistance for Needy Fami-
lies (TANF) Program established by the Personal
Responsibility and Work Opportunity Reconciliation
Act of 1996 (Public Law 104–193) has succeeded in
moving families from welfare to work and reducing
child poverty.
(A) There has been a dramatic increase in
the employment of current and former welfare
recipients. The percentage of working recipients
reached an all-time high in fiscal years 1999
and 2000. In fiscal year 1999, 33 percent of
adult recipients were working, compared to less
than 7 percent in fiscal year 1992, and 11 per-
cent in fiscal year 1996. All States met the
overall participation rate standard in fiscal year
2000, as did the District of Columbia and
Puerto Rico.
(B) Earnings for welfare recipients re-
maining on the rolls have also increased signifi-
cantly, as have earnings for female-headed
households. The increases have been particu-
larly large for the bottom 2 income quintiles,
that is, those women who are most likely to be
former or present welfare recipients.
(C) Welfare dependency has plummeted.
As of September 2001, 2,103,000 families and
5,333,000 individuals were receiving assistance.
Accordingly, the number of families in the wel-
fare caseload and the number of individuals re-
ceiving cash assistance declined 52 percent and
56 percent, respectively, since the enactment of
TANF. These declines have persisted even as
unemployment rates have increased: unemploy-
ment rates nationwide rose 25 percent, from
3.9 percent in September 2000 to 4.9 percent
in September 2001, while welfare caseloads con-
tinued to drop by 7 percent.
(D) The child poverty rate continued to de-
cline between 1996 and 2000, falling 21 percent
from 20.5 to 16.2 percent. The 2000 child pov-
erty rate is the lowest since 1979. Child poverty
rates for African-American and Hispanic chil-
dren have also fallen dramatically during the
past 6 years. African-American child poverty is
at the lowest rate on record and Hispanic child
poverty has had the largest 4-year decrease on
record.
(E) Despite these gains, States have had
mixed success in fully engaging welfare recipi-
ents in work activities. While all States have
met the overall work participation rates re-
quired by law, in 2000, in an average month,
only about 1⁄3 of all families with an adult par-
ticipated in work activities that were countable
toward the State’s participation rate. Eight ju-
risdictions failed to meet the more rigorous 2-
parent work requirements, and about 20 States
are not subject to the 2-parent requirements,
most because they moved their 2-parent cases
to separate State programs where they are not
subject to a penalty for failing the 2-parent
rates.
(2) As a Nation, we have made substantial
progress in reducing teen pregnancies and births,
slowing increases in nonmarital childbearing, and
improving child support collections and paternity es-
tablishment.
(A) The teen birth rate has fallen continu-
ously since 1991, down a dramatic 22 percent
by 2000. During the period of 1991–2000,
teenage birth rates fell in all States and the
District of Columbia, Puerto Rico, and the Vir-
gin Islands. Declines also have spanned age, ra-
cial, and ethnic groups. There has been success
in lowering the birth rate for both younger and
older teens. The birth rate for those 15–17
years of age is down 29 percent since 1991, and
the rate for those 18 and 19 is down 16 per-
cent. Between 1991 and 2000, teen birth rates
declined for all women ages 15–19—white, Afri-
can American, American Indian, Asian or Pa-
cific Islander, and Hispanic women ages 15–19.
The rate for African American teens—until re-
cently the highest—experienced the largest de-
cline, down 31 percent from 1991 to 2000, to
reach the lowest rate ever reported for this
group. Most births to teens are nonmarital; in
2000, about 73 percent of the births to teens
aged 15–19 occurred outside of marriage.
(B) Nonmarital childbearing continued to
increase slightly in 2000, however not at the
sharp rates of increase seen in recent decades.
The birth rate among unmarried women in
2000 was 3.5 percent lower than its peak
reached in 1994, while the proportion of births
occurring outside of marriage has remained at
approximately 33 percent since 1998.
(C) The negative consequences of out-of-
wedlock birth on the mother, the child, the fam-
ily, and society are well documented. These in-
clude increased likelihood of welfare depend-
ency, increased risks of low birth weight, poor
cognitive development, child abuse and neglect,
and teen parenthood, and decreased likelihood
of having an intact marriage during adulthood.
(D) An estimated 23,900,000 children do
not live with their biological father. 16,000,000
children live with their mother only. These facts
are attributable largely to declining marriage
rates, increasing divorce rates, and increasing
rates of nonmarital births during the latter part
of the 20th century.
(E) There has been a dramatic rise in co-
habitation as marriages have declined. Only 40
percent of children of cohabiting couples will
see their parents marry. Those who do marry
experience a 50 percent higher divorce rate.
Children in single-parent households and cohab-
iting households are at much higher risk of
child abuse than children in intact married and
stepparent families.
(F) Children who live apart from their bio-
logical fathers, on average, are more likely to be
poor, experience educational, health, emotional,
and psychological problems, be victims of child
abuse, engage in criminal behavior, and become
involved with the juvenile justice system than
their peers who live with their married, biologi-
cal mother and father. A child living in a single-
parent family is nearly 5 times as likely to be
poor as a child living in a married-couple fam-
ily. In married-couple families, the child poverty
rate is 8.1 percent, in households headed by a
single mother, the poverty rate is 39.7 percent.
(G) Since the enactment of the Personal
Responsibility and Work Opportunity Reconcili-
ation Act of 1996, child support collections
within the child support enforcement system
have 
grown 
every 
year, 
increasing 
from
$12,000,000,000 in fiscal year 1996 to nearly
$19,000,000,000 in fiscal year 2001. The num-
ber of paternities established or acknowledged
in fiscal year 2002 reached an historic high of
over 1,500,000—which includes a nearly 100
percent increase through in-hospital acknowl-
edgement programs to 688,510 in 2000 from
349,356 in 1996. Child support collections were
made in over 7,000,000 cases in fiscal year
2000, significantly more than the almost
4,000,000 cases having a collection in 1996.
(3) The Personal Responsibility and Work Op-
portunity Reconciliation Act of 1996 gave States
great flexibility in the use of Federal funds to de-
velop innovative programs to help families leave wel-
fare and begin employment and to encourage the
formation of 2-parent families.
(A) Total Federal and State TANF ex-
penditures 
in 
fiscal 
year 
2000 
were
$24,000,000,000, up from $22,600,000,000 for
the previous year. This increased spending is
attributable to significant new investments in
supportive services in the TANF program, such
as child care and activities to support work.
(B) Since the welfare reform effort began
there has been a dramatic increase in work par-
ticipation (including employment, community
service, and work experience) among welfare re-
cipients, as well as an unprecedented reduction
in the caseload because recipients have left wel-
fare for work.
(C) States are making policy choices and
investment decisions best suited to the needs of
their citizens.
(i) To expand aid to working families,
all States disregard a portion of a family’s
earned income when determining benefit
levels.
(ii) Most States increased the limits
on countable assets above the former Aid
to Families with Dependent Children
(AFDC) program. Every State has in-
creased the vehicle asset level above the
prior AFDC limit for a family’s primary
automobile.
(iii) States are experimenting with
programs to promote marriage and father
involvement. Over half the States have
eliminated restrictions on 2-parent fami-
lies. Many States use TANF, child sup-
port, or State funds to support community-
based activities to help fathers become
more involved in their children’s lives or
strengthen relationships between mothers
and fathers.
(4) Therefore, it is the sense of the Congress
that increasing success in moving families from wel-
fare to work, as well as in promoting healthy mar-
riage and other means of improving child well-being,
are very important Government interests and the
policy contained in part A of title IV of the Social
Security Act (as amended by this Act) is intended
to serve these ends.
TITLE I—TANF
SEC. 101. PURPOSES.
Section 401(a) (42 U.S.C. 601(a)) is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘increase’’ and inserting ‘‘improve child
well-being by increasing’’;
(2) in paragraph (1), by inserting ‘‘and serv-
ices’’ after ‘‘assistance’’; and
(3) in paragraph (4), by striking ‘‘two-parent
families’’ and inserting ‘‘healthy, 2-parent married
families, and encourage responsible fatherhood.’’.
SEC. 102. FAMILY ASSISTANCE GRANTS.
(a) 
EXTENSION
OF
AUTHORITY.—Section
403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is amended—
(1) by striking ‘‘1996, 1997, 1998, 1999, 2000,
2001, and 2002’’ and inserting ‘‘2003 through
2007’’; and
(2) by inserting ‘‘payable to the State for the
fiscal year’’ before the period.
(b) STATE FAMILY ASSISTANCE GRANT.—Section
403(a)(1) (42 U.S.C. 603(a)(1)) is amended by striking
subparagraphs (B) through (E) and inserting the fol-
lowing:
‘‘(B) 
STATE
FAMILY
ASSISTANCE
GRANT.—The State family assistance grant
payable to a State for a fiscal year shall be the
amount that bears the same ratio to the
amount specified in subparagraph (C) of this
paragraph as the amount required to be paid to
the State under this paragraph for fiscal year
2002 (determined without regard to any reduc-
tion pursuant to section 412(a)(1)) bears to the
total amount required to be paid under this
paragraph for fiscal year 2002.
‘‘(C) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
each of fiscal years 2003 through 2007
$16,566,542,000 for grants under this para-
graph.’’.
(c) MATCHING GRANTS FOR THE TERRITORIES.—
Section 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by
striking ‘‘1997 through ‘‘2002’’ and inserting ‘‘2003
through 2007’’.
SEC. 
103. 
PROMOTION 
OF 
FAMILY 
FORMATION 
AND
HEALTHY MARRIAGE.
(a) STATE PLANS.—Section 402(a)(1)(A) (42 U.S.C.
602(a)(1)(A)) is amended by adding at the end the fol-
lowing:
‘‘(vii) Encourage equitable treatment
of married, 2-parent families under the
program referred to in clause (i).’’.
(b) HEALTHY MARRIAGE PROMOTION GRANTS; RE-
PEAL
OF BONUS
FOR REDUCTION
OF ILLEGITIMACY
RATIO.—Section 403(a)(2) (42 U.S.C. 603(a)(2)) is
amended to read as follows:
‘‘(2) 
HEALTHY
MARRIAGE
PROMOTION
GRANTS.—
‘‘(A) AUTHORITY.—The Secretary shall
award competitive grants to States, territories,
and tribal organizations for not more than 50
percent of the cost of developing and imple-
menting innovative programs to promote and
support healthy, married, 2-parent families and
reduce out-of-wedlock births.
‘‘(B) HEALTHY MARRIAGE PROMOTION AC-
TIVITIES.—Funds provided under subparagraph
(A) shall be used to support any of the fol-
lowing programs or activities:
‘‘(i) Public advertising campaigns on
the value of marriage and the skills needed
to increase marital stability and health.
‘‘(ii) Education in high schools on the
value of marriage, relationship skills, and
budgeting.
‘‘(iii) Marriage education and mar-
riage skills programs for non-married preg-
nant women and non-married expectant fa-
thers.
‘‘(iv) Pre-marital education and mar-
riage skills training for engaged couples
and for couples interested in marriage.
‘‘(v) Marriage enhancement and mar-
riage skills training programs for married
couples.
‘‘(vi) Divorce reduction programs that
teach relationship skills.
‘‘(vii) Marriage mentoring programs
which use married couples as role models
and mentors in at-risk communities.
‘‘(viii) Programs to reduce the dis-
incentives to marriage in means-tested aid
programs, if offered in conjunction with
any activity described in this subpara-
graph.
‘‘(C) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
each of fiscal years 2003 through 2007
$100,000,000 for grants under this para-
graph.’’.
(c) COUNTING
OF SPENDING
ON NON-ELIGIBLE
FAMILIES
TO PREVENT
AND REDUCE INCIDENCE
OF
OUT-OF-WEDLOCK
BIRTHS, ENCOURAGE
FORMATION
AND MAINTENANCE OF HEALTHY, 2-PARENT MARRIED
FAMILIES, 
OR
ENCOURAGE
RESPONSIBLE
FATHER-
HOOD.—Section 
409(a)(7)(B)(i) 
(42 
U.S.C.
609(a)(7)(B)(i)) is amended by adding at the end the fol-
lowing:
‘‘(V) COUNTING
OF
SPENDING
ON NON-ELIGIBLE FAMILIES TO PRE-
VENT
AND
REDUCE
INCIDENCE
OF
OUT-OF-WEDLOCK
BIRTHS, ENCOUR-
AGE FORMATION AND MAINTENANCE
OF
HEALTHY, 
2-PARENT
MARRIED
FAMILIES, OR
ENCOURAGE
RESPON-
SIBLE
FATHERHOOD.—The 
term
‘qualified State expenditures’ includes
the total expenditures by the State
during the fiscal year under all State
programs for a purpose described in
paragraph (3) or (4) of section
401(a).’’.
SEC. 104. SUPPLEMENTAL GRANT FOR POPULATION IN-
CREASES IN CERTAIN STATES.
Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)) is
amended—
(1) in clause (i), by striking ‘‘fiscal year 2002’’
and inserting ‘‘each of fiscal years 2002 through
2007’’;
(2) in clause (ii), by striking ‘‘2002’’ and in-
serting ‘‘2007’’; and
(3) in clause (iii), by striking ‘‘fiscal year
2002’’ and inserting ‘‘each of fiscal years 2002
through 2007’’.
SEC. 105. BONUS TO REWARD EMPLOYMENT ACHIEVE-
MENT.
(a) REALLOCATION OF FUNDING.—Section 403(a)(4)
(42 U.S.C. 603(a)(4)) is amended—
(1) in the paragraph heading, by striking
‘‘HIGH PERFORMANCE STATES’’ and inserting ‘‘EM-
PLOYMENT ACHIEVEMENT’’;
(2) in subparagraph (D)(ii)—
(A) in subclause (I), by striking ‘‘equals
$200,000,000’’ and inserting ‘‘(other than
2003) equals $200,000,000, and for bonus year
2003 equals $100,000,000’’; and
(B) 
in 
subclause 
(II), 
by 
striking
‘‘$1,000,000,000’’ 
and 
inserting
‘‘$900,000,000’’; and
(3) 
in 
subparagraph 
(F), 
by 
striking
‘‘$1,000,000,000’’ and inserting ‘‘$900,000,000’’.
(b) BONUS
TO REWARD EMPLOYMENT ACHIEVE-
MENT.—
(1) 
IN
GENERAL.—Section 
403(a)(4) 
(42
U.S.C. 603(a)(4)) is amended by striking subpara-
graphs (A) through (F) and inserting the following:
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant pursuant to this paragraph to
each State for each bonus year for which the
State is an employment achievement State.
‘‘(B) AMOUNT OF GRANT.—
‘‘(i) IN GENERAL.—Subject to clause
(ii) of this subparagraph, the Secretary
shall determine the amount of the grant
payable under this paragraph to an em-
ployment achievement State for a bonus
year, which shall be based on the perform-
ance of the State as determined under sub-
paragraph (D)(i) for the fiscal year that
immediately precedes the bonus year.
‘‘(ii) LIMITATION.—The amount pay-
able to a State under this paragraph for a
bonus year shall not exceed 5 percent of
the State family assistance grant.
‘‘(C) FORMULA
FOR
MEASURING
STATE
PERFORMANCE.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), not later than October 1, 2003, the
Secretary, in consultation with the Na-
tional Governors Association and the
American Public Human Services Associa-
tion, shall develop a formula for measuring
State performance in operating the State
program funded under this part so as to
achieve the goals of employment entry, job
retention, and increased earnings from em-
ployment for families receiving assistance
under the program, as measured on an ab-
solute basis and on the basis of improve-
ment in State performance.
‘‘(ii) SPECIAL RULE FOR BONUS YEAR
2004.—For the purposes of awarding a
bonus under this paragraph for bonus year
2004, the Secretary may measure the per-
formance of a State in fiscal year 2003
using the job entry rate, job retention rate,
and earnings gain rate components of the
formula 
developed 
under 
section
403(a)(4)(C) as in effect immediately be-
fore the effective date of this paragraph.
‘‘(D) DETERMINATION
OF
STATE
PER-
FORMANCE.—For each bonus year, the Sec-
retary shall—
‘‘(i) use the formula developed under
subparagraph (C) to determine the per-
formance of each eligible State for the fis-
cal year that precedes the bonus year; and
‘‘(ii) prescribe performance standards
in such a manner so as to ensure that—
‘‘(I) the average annual total
amount of grants to be made under
this paragraph for each bonus year
equals $100,000,000; and
‘‘(II) the total amount of grants
to be made under this paragraph for
all bonus years equals $500,000,000.
‘‘(E) DEFINITIONS.—In this paragraph:
‘‘(i) BONUS YEAR.—The term ‘bonus
year’ means each of fiscal years 2004
through 2008.
‘‘(ii) 
EMPLOYMENT
ACHIEVEMENT
STATE.—The term ‘employment achieve-
ment State’ means, with respect to a bonus
year, an eligible State whose performance
determined 
pursuant 
to 
subparagraph
(D)(i) for the fiscal year preceding the
bonus year equals or exceeds the perform-
ance standards prescribed under subpara-
graph (D)(ii) for such preceding fiscal
year.
‘‘(F) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 2004 through 2008 $500,000,000
for grants under this paragraph.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on October 1,
2003.
SEC. 106. CONTINGENCY FUND.
(a) DEPOSITS INTO FUND.—Section 403(b)(2) (42
U.S.C. 603(b)(2)) is amended—
(1) by striking ‘‘1997, 1998, 1999, 2000, 2001,
and 2002’’ and inserting ‘‘2003 through 2007’’; and
(2) 
by 
striking 
all 
that 
follows
‘‘$2,000,000,000’’ and inserting a period.
(b) GRANTS.—Section 403(b)(3)(C)(ii) (42 U.S.C.
603(b)(3)(C)(ii)) is amended by striking ‘‘fiscal years
1997 through 2002’’ and inserting ‘‘fiscal years 2003
through 2007’’.
(c) DEFINITION OF NEEDY STATE.—Clauses (i) and
(ii) of section 403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are
amended by inserting after ‘‘1996’’ the following: ‘‘, and
the Food Stamp Act of 1977 as in effect during the cor-
responding 3-month period in the fiscal year preceding
such most recently concluded 3-month period,’’.
(d) ANNUAL RECONCILIATION: FEDERAL MATCHING
OF STATE EXPENDITURES ABOVE ‘‘MAINTENANCE OF
EFFORT’’ 
LEVEL.—Section 
403(b)(6) 
(42 
U.S.C.
603(b)(6)) is amended—
(1) in subparagraph (A)(ii)—
(A) by adding ‘‘and’’ at the end of sub-
clause (I);
(B) by striking ‘‘; and’’ at the end of sub-
clause (II) and inserting a period; and
(C) by striking subclause (III);
(2) in subparagraph (B)(i)(II), by striking all
that follows ‘‘section 409(a)(7)(B)(iii))’’ and insert-
ing a period;
(3) by amending subparagraph (B)(ii)(I) to
read as follows:
‘‘(I) the qualified State expendi-
tures 
(as 
defined 
in 
section
409(a)(7)(B)(i)) for the fiscal year;
plus’’; and
(4) by striking subparagraph (C).
(e) CONSIDERATION OF CERTAIN CHILD CARE EX-
PENDITURES
IN
DETERMINING
STATE
COMPLIANCE
WITH CONTINGENCY FUND MAINTENANCE OF EFFORT
REQUIREMENT.—Section 
409(a)(10) 
(42 
U.S.C.
609(a)(10)) is amended—
(1) by striking ‘‘(other than the expenditures
described in subclause (I)(bb) of that paragraph)
under the State program funded under this part’’;
and
(2) by striking ‘‘excluding any amount ex-
pended by the State for child care under subsection
(g) or (i) of section 402 (as in effect during fiscal
year 1994) for fiscal year 1994,’’.
SEC. 107. USE OF FUNDS.
(a) GENERAL RULES.—Section 404(a)(2) (42 U.S.C.
604(a)(2)) is amended by striking ‘‘in any manner that’’
and inserting ‘‘for any purposes or activities for which’’.
(b) TREATMENT OF INTERSTATE IMMIGRANTS.—
(1) 
STATE
PLAN
PROVISION.—Section
402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended
by striking clause (i) and redesignating clauses (ii)
through (iv) as clauses (i) through (iii), respectively.
(2) USE OF FUNDS.—Section 404 (42 U.S.C.
604) is amended by striking subsection (c).
(c) INCREASE IN AMOUNT TRANSFERABLE TO CHILD
CARE.—Section 404(d)(1) (42 U.S.C. 604(d)(1)) is
amended by striking ‘‘30’’ and inserting ‘‘50’’.
(d) INCREASE IN AMOUNT TRANSFERABLE TO TITLE
XX 
PROGRAMS.—Section 
404(d)(2)(B) 
(42 
U.S.C.
604(d)(2)(B)) is amended to read as follows:
‘‘(B) APPLICABLE
PERCENT.—For pur-
poses of subparagraph (A), the applicable per-
cent is—
‘‘(i) 4.25 percent for fiscal year 2003;
‘‘(ii) 5 percent for fiscal year 2004;
‘‘(iii) 6 percent for fiscal year 2005;
‘‘(iv) 8 percent for fiscal year 2006;
and
‘‘(v) 10 percent for fiscal year 2007
and each succeeding fiscal year.’’.
(e) CLARIFICATION OF AUTHORITY OF STATES TO
USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS
TO PROVIDE TANF BENEFITS AND SERVICES.—Section
404(e) (42 U.S.C. 604(e)) is amended to read as follows:
‘‘(e) AUTHORITY TO CARRY OVER OR RESERVE CER-
TAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FU-
TURE CONTINGENCIES.—
‘‘(1) CARRYOVER.—A State or tribe may use a
grant made to the State or tribe under this part to
provide, without fiscal year limitation, any benefit or
service that may be provided under the State or trib-
al program funded under this part.
‘‘(2) CONTINGENCY RESERVE.—A State or tribe
may designate any portion of a grant made to the
State or tribe under this part as a contingency re-
serve for future needs, and may use any amount so
designated to provide, without fiscal year limitation,
any benefit or service that may be provided under
the State or tribal program funded under this part.
If a State or tribe so designates a portion of such
a grant, the State shall, on an annual basis, include
in its report under section 411(a) the amount so
designated.’’.
SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE
PROGRAMS.
(a) REPEAL.—Section 406 (42 U.S.C. 606) is re-
pealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 409(a) (42 U.S.C. 609(a)) is
amended by striking paragraph (6).
(2) Section 412 (42 U.S.C. 612) is amended by
striking subsection (f) and redesignating subsection
(g) as subsection (f).
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2))
is amended by striking ‘‘406,’’.
SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-
SUFFICIENCY PLAN REQUIREMENTS.
(a) MODIFICATION
OF
STATE
PLAN
REQUIRE-
MENTS.—Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A))
is amended by striking clauses (ii) and (iii) and inserting
the following:
‘‘(ii) Require a parent or caretaker re-
ceiving assistance under the program to
engage in work or alternative self-suffi-
ciency activities (as defined by the State),
consistent with section 407(e)(2).
‘‘(iii) Require families receiving assist-
ance under the program to engage in ac-
tivities in accordance with family self-suffi-
ciency plans developed pursuant to section
408(b).’’.
(b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY
PLANS.—
(1) IN GENERAL.—Section 408(b) (42 U.S.C.
608(b)) is amended to read as follows:
‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.—
‘‘(1) IN GENERAL.—A State to which a grant
is made under section 403 shall—
‘‘(A) establish for each family receiving as-
sistance under the State program funded under
this part a self-sufficiency plan that specifies
appropriate activities described in the State
plan submitted pursuant to section 402, includ-
ing direct work activities as appropriate de-
signed to assist the family in achieving their
maximum degree of self-sufficiency;
‘‘(B) require, at a minimum, each member
of the family who is a work-eligible individual
(as defined in section 407(b)(2)(C)) to partici-
pate in activities in accordance with the self-
sufficiency plan;
‘‘(C) monitor the participation of such
family members in the activities and the
progress of the family toward self-sufficiency;
‘‘(D) regularly review the self-sufficiency
plan; and
‘‘(E) revise the self-sufficiency plan as ap-
propriate.
‘‘(2) TIMING.—The State shall comply with
paragraph (1) with respect to a family—
‘‘(A) in the case of a family that, as of Oc-
tober 1, 2002, is not receiving assistance from
the State program funded under this part, not
later than 60 days after the family first receives
assistance on the basis of the most recent appli-
cation for the assistance; or
‘‘(B) in the case of a family that, as of
such date, is receiving the assistance, not later
than 12 months after the date of the enactment
of this subsection.’’.
(2) PENALTY
FOR
FAILURE
TO
ESTABLISH
FAMILY
SELF-SUFFICIENCY
PLAN.—Section
409(a)(3) (42 U.S.C. 609(a)(3)) is amended—
(A) in the paragraph heading, by inserting
‘‘OR
ESTABLISH
FAMILY
SELF-SUFFICIENCY
PLAN’’ after ‘‘RATES’’; and
(B) in subparagraph (A), by inserting ‘‘or
408(b)’’ after ‘‘407(a)’’.
SEC. 110. WORK PARTICIPATION REQUIREMENTS.
(a) IN GENERAL.—Section 407 (42 U.S.C. 607) is
amended by striking all that precedes subsection (b)(3)
and inserting the following:
‘‘SEC. 407. WORK PARTICIPATION REQUIREMENTS.
‘‘(a) PARTICIPATION
RATE
REQUIREMENTS.—A
State to which a grant is made under section 403 for a
fiscal year shall achieve a minimum participation rate
equal to not less than—
‘‘(1) 50 percent for fiscal year 2003;
‘‘(2) 55 percent for fiscal year 2004;
‘‘(3) 60 percent for fiscal year 2005;
‘‘(4) 65 percent for fiscal year 2006; and
‘‘(5) 70 percent for fiscal year 2007 and each
succeeding fiscal year.
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) AVERAGE MONTHLY RATE.—For purposes
of subsection (a), the participation rate of a State
for a fiscal year is the average of the participation
rates of the State for each month in the fiscal year.
‘‘(2) MONTHLY PARTICIPATION RATES; INCOR-
PORATION OF 40-HOUR WORK WEEK STANDARD.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the participation rate of a State for
a month is—
‘‘(i) the total number of countable
hours (as defined in subsection (c)) with
respect to the counted families for the
State for the month; divided by
‘‘(ii) 160 multiplied by the number of
counted families for the State for the
month.
‘‘(B) COUNTED FAMILIES DEFINED.—
‘‘(i) IN GENERAL.—In subparagraph
(A), the term ‘counted family’ means, with
respect to a State and a month, a family
that includes a work-eligible individual and
that receives assistance in the month under
the State program funded under this part,
subject to clause (ii).
‘‘(ii) STATE
OPTION
TO
EXCLUDE
CERTAIN
FAMILIES.—At the option of a
State, the term ‘counted family’ shall not
include—
‘‘(I) a family in the first month
for which the family receives assist-
ance from a State program funded
under this part on the basis of the
most recent application for such as-
sistance; or
‘‘(II) a family in which the
youngest child has not attained 12
months of age, except to the extent
that the State, on a case-by-case
basis, has elected to permit or require
the family to engage in direct work
activities or other activities specified
by the State.
‘‘(iii) STATE OPTION TO INCLUDE IN-
DIVIDUALS RECEIVING ASSISTANCE UNDER
A
TRIBAL
FAMILY
ASSISTANCE
PLAN
OR
TRIBAL WORK PROGRAM.—At the option of
a State, the term ‘counted family’ may in-
clude families in the State that are receiv-
ing assistance under a tribal family assist-
ance plan approved under section 412 or
under a tribal work program to which
funds are provided under this part.
‘‘(C) WORK-ELIGIBLE
INDIVIDUAL
DE-
FINED.—In this section, the term ‘work-eligible
individual’ means an individual—
‘‘(i) who is married or a single head
of household; and
‘‘(ii) whose needs are (or, but for
sanctions under this part that have been in
effect for more than 3 months (whether or
not consecutive) in the preceding 12
months or under part D, would be) in-
cluded in determining the amount of cash
assistance to be provided to the family
under the State program funded under this
part.’’.
(b) RECALIBRATION
OF
CASELOAD
REDUCTION
CREDIT.—Section 
407(b)(3)(A)(ii) 
(42 
U.S.C.
607(b)(3)(A)(ii)) is amended to read as follows:
‘‘(ii) the average monthly number of
families that received assistance under the
State program funded under this part
during—
‘‘(I) if the fiscal year is fiscal
year 2003, fiscal year 1996;
‘‘(II) if the fiscal year is fiscal
year 2004, fiscal year 1998; or
‘‘(III) if the fiscal year is fiscal
year 2005, fiscal year 2001; or
‘‘(IV) if the fiscal year is fiscal
year 2006, fiscal year 2002; or
‘‘(V) if the fiscal year is fiscal
year 2007, fiscal year 2003.’’.
(c) COUNTABLE HOURS.—Section 407 of such Act
(42 U.S.C. 607) is amended by striking subsections (c)
and (d) and inserting the following:
‘‘(c) COUNTABLE HOURS.—
‘‘(1) DEFINITION.—In subsection (b)(2), the
term ‘countable hours’ means, with respect to a fam-
ily for a month, the total number of hours in the
month in which any member of the family who is a
work-eligible individual is engaged in a direct work
activity or other activity specified by the State, sub-
ject to the other provisions of this subsection.
‘‘(2) LIMITATIONS.—Subject to such regula-
tions as the Secretary may prescribe:
‘‘(A) MINIMUM WEEKLY AVERAGE OF 24
HOURS
OF
DIRECT
WORK
ACTIVITIES
RE-
QUIRED.—If the work-eligible individuals in a
family are engaged in a direct work activity for
an average total of fewer than 24 hours per
week in a month, then the number of countable
hours with respect to the family for the month
shall be zero.
‘‘(B) MAXIMUM WEEKLY AVERAGE OF 16
HOURS OF OTHER ACTIVITIES.—An average of
not more than 16 hours per week of other ac-
tivities referred to in paragraph (1) may be
considered countable hours in a month with re-
spect to a family.
‘‘(3) SPECIAL RULES.—For purposes of para-
graph (1):
‘‘(A) PARTICIPATION
IN
QUALIFIED
AC-
TIVITIES.—
‘‘(i) IN GENERAL.—If, with the ap-
proval of the State, the work-eligible indi-
viduals in a family are engaged in 1 or
more qualified activities for an average
total of at least 24 hours per week in a
month, then all such engagement in the
month shall be considered engagement in a
direct work activity, subject to clause (iii).
‘‘(ii) 
QUALIFIED
ACTIVITY
DE-
FINED.—The 
term 
‘qualified 
activity’
means an activity specified by the State,
including a program meeting such stand-
ards and criteria as the State may specify,
excluding a program that does not address
a purpose specified in section 401(a), but
including a program that provides—
‘‘(I) substance abuse counseling
or treatment;
‘‘(II) 
rehabilitation 
treatment
and services;
‘‘(III) work-related education or
training directed effectively at ena-
bling the family member to work; or
‘‘(IV) job search or job readiness
assistance.
‘‘(iii) LIMITATION.—Clause (i) may
not be applied to a family for more than
3 consecutive months in any period of 24
consecutive months.
‘‘(B) SCHOOL
ATTENDANCE
BY
TEEN
HEAD OF HOUSEHOLD.—A family shall be con-
sidered to be engaged in a direct work activity
for an average of 40 hours per week in a month
if the family includes an individual who is mar-
ried or is a single head of household who has
not attained 20 years of age, and the
individual—
‘‘(i) maintains satisfactory attendance
at secondary school or the equivalent in
the month; or
‘‘(ii) participates in education directly
related to employment for an average of at
least 20 hours per week in the month.
‘‘(d) DIRECT WORK ACTIVITIES.—In this section, the
term ‘direct work activities’ means—
‘‘(1) unsubsidized employment;
‘‘(2) subsidized private sector employment;
‘‘(3) subsidized public sector employment;
‘‘(4) on-the-job training;
‘‘(5) supervised work experience; or
‘‘(6) supervised community service.
(d) PENALTIES
AGAINST
INDIVIDUALS.—Section
407(e) (42 U.S.C. 607(e)) is amended—
(1) in paragraph (1), in the matter that pre-
cedes subparagraph (A)—
(A) by striking ‘‘work’’ and inserting ‘‘ac-
tivities’’; and
(B) by inserting ‘‘and the family does not
otherwise engage in activities in accordance
with the self-sufficiency plan established for the
family pursuant to section 408(b) for the num-
ber of hours required by the self-sufficiency
plan,’’ before ‘‘the State shall’’; and
(2) in paragraph (2)—
(A) in the matter that precedes subpara-
graph (A), by striking ‘‘work’’ and inserting
‘‘activities’’; and
(B) in subparagraph (A), by striking
‘‘work’’ and inserting ‘‘activity’’.
(e) CONFORMING AMENDMENTS.—
(1) 
Section 
404(k)(1)(D) 
(42 
U.S.C.
604(k)(1)(D)) is amended by striking ‘‘work activi-
ties (as defined in section 407(d)’’ and inserting ‘‘di-
rect work activities’’.
(2) Section 407(b) (42 U.S.C. 607(b)) is
amended by striking paragraphs (4) and (5).
(3) Section 407(f) (42 U.S.C. 607(f)) is amend-
ed in each of paragraphs (1) and (2) by striking
‘‘work activity described in subsection (d)’’ and in-
serting ‘‘direct work activity’’.
(4) The heading of section 409(a)(14) (42
U.S.C. 609(a)(14)) is amended by inserting ‘‘OR RE-
FUSING TO ENGAGE IN ACTIVITIES UNDER A FAMILY
SELF-SUFFICIENCY PLAN’’ after ‘‘WORK’’.
SEC. 111. MAINTENANCE OF EFFORT.
(a) IN GENERAL.—Section 409(a)(7) (42 U.S.C.
609(a)(7)) is amended—
(1) in subparagraph (A) by striking ‘‘fiscal year
1998, 1999, 2000, 2001, 2002, or 2003’’ and insert-
ing ‘‘fiscal year 2003, 2004, 2005, 2006, 2007 or
2008’’; and
(2) in subparagraph (B)(ii)—
(A) by inserting ‘‘preceding’’ before ‘‘fiscal
year’’; and
(B) by striking ‘‘for fiscal years 1997
through 2002,’’.
(b) STATE SPENDING
ON PROMOTING HEALTHY
MARRIAGE.—
(1) IN GENERAL.—Section 404 (42 U.S.C. 604)
is amended by adding at the end the following:
‘‘(l) MARRIAGE PROMOTION.—A State, territory, or
tribal organization to which a grant is made under section
403(a)(2) may use a grant made to the State, territory,
or tribal organization under any other provision of section
403 for marriage promotion activities, and the amount of
any such grant so used shall be considered State funds
for purposes of section 403(a)(2).’’.
(2) FEDERAL
TANF
FUNDS
USED
FOR
MAR-
RIAGE PROMOTION DISREGARDED FOR PURPOSES OF
MAINTENANCE OF EFFORT REQUIREMENT.—Section
409(a)(7)(B)(i)(II) (42 U.S.C. 609(a)(7)(B)(i)(II)),
as amended by section 103(c) of this Act, is amend-
ed by adding at the end the following:
‘‘(VI) EXCLUSION
OF
FEDERAL
TANF
FUNDS
USED
FOR
MARRIAGE
PROMOTION
ACTIVITIES.—Such term
does not include the amount of any
targets 
in 
regulations 
prescribed
under section 403(a)(4)(B);
‘‘(II) efforts to reduce teen preg-
nancy;
‘‘(III) services for struggling and
noncompliant families, and for clients
with special problems; and
‘‘(IV) program integration, in-
cluding the extent to which employ-
ment and training services under the
program are provided through the
One-Stop Career Center System cre-
ated under the Workforce Investment
Act of 1998, and the extent to which
former recipients of such assistance
have access to additional core, inten-
sive, or training services funded
through such Act.’’; and
(2) in subparagraph (B), by striking clause (iv)
and inserting the following:
‘‘(iv) The document shall describe
strategies to engage faith-based organiza-
tions in the provision of services funded
under this part and efforts related to sec-
tion 104 of the Personal Responsibility and
Work Opportunity Reconcilation Act of
1996.
‘‘(v) The document shall describe
strategies to improve program manage-
ment and performance.’’.
(b) PERFORMANCE MEASURES.—Section 413 (42
U.S.C. 613) is amended by adding at the end the fol-
lowing:
‘‘(k) PERFORMANCE IMPROVEMENT.—The Secretary,
in consultation with the National Governors’ Association
and the American Public Human Services Association,
shall develop uniform performance measures designed to
assess the degree of effectiveness, and the degree of im-
provement, of State programs funded under this part in
accomplishing the purposes of this part.’’.
(c) 
ANNUAL
RANKING
OF
STATES.—Section
413(d)(1) (42 U.S.C. 613(d)(1)) is amended by striking
‘‘long-term private sector jobs’’ and inserting ‘‘private sec-
tor jobs, the success of the recipients in retaining employ-
ment, the ability of the recipients to increase their
wages,’’.
SEC. 113. DATA COLLECTION AND REPORTING.
(a) CONTENTS OF REPORT.—Section 411(a)(1)(A)
(42 U.S.C. 611(a)(1)(A)) is amended—
(1) in clause (vii), by inserting ‘‘and minor par-
ent’’ after ‘‘of each adult’’;
(2) in clause (viii), by striking ‘‘and educational
level’’;
(3) in clause (ix), by striking ‘‘, and if the lat-
ter 2, the amount received’’;
(4) in clause (x)—
(A) by striking ‘‘each type of’’; and
(B) by inserting before the period ‘‘and, if
applicable, the reason for receipt of the assist-
ance for a total of more than 60 months’’;
(5) in clause (xi), by striking the subclauses
and inserting the following:
‘‘(I) Subsidized private sector
employment.
‘‘(II) Unsubsidized employment.
‘‘(III) Public sector employment,
supervised work experience, or super-
vised community service.
‘‘(IV) On-the-job training.
‘‘(V) Job search and placement.
‘‘(VI) Training.
‘‘(VII) Education.
‘‘(VIII) Other activities directed
at the purposes of this part, as speci-
fied in the State plan submitted pur-
suant to section 402.’’;
(6) in clause (xii), by inserting ‘‘and progress
toward universal engagement’’ after ‘‘participation
rates’’;
(7) in clause (xiii), by striking ‘‘type and’’ be-
fore ‘‘amount of assistance’’;
(8) in clause (xvi), by striking subclause (II)
and redesignating subclauses (III) through (V) as
subclauses (II) through (IV), respectively; and
(9) by adding at the end the following:
‘‘(xviii) The date the family first re-
ceived assistance from the State program
on the basis of the most recent application
for such assistance.
‘‘(xix) Whether a self-sufficiency plan
is established for the family in accordance
with section 408(b).
‘‘(xx) With respect to any child in the
family, the marital status of the parents or
guardians of the child and whether the
parents or guardians are living.’’.
(b) USE OF SAMPLES.—Section 411(a)(1)(B) (42
U.S.C. 611(a)(1)(B)) is amended—
(1) in clause (i)—
(A) by striking ‘‘a sample’’ and inserting
‘‘samples’’; and
(B) by inserting before the period ‘‘, except
that the Secretary may designate core data ele-
ments that must be reported on all families’’;
and
(2) in clause (ii), by striking ‘‘funded under this
part’’ and inserting ‘‘described in subparagraph
(A)’’.
(c) REPORT ON FAMILIES THAT BECOME INELI-
GIBLE TO RECEIVE ASSISTANCE.—Section 411(a) (42
U.S.C. 611(a)) is amended—
(1) by striking paragraph (5);
(2) by redesignating paragraph (6) as para-
graph (5); and
(3) by inserting after paragraph (5) (as so re-
designated) the following:
‘‘(6) REPORT ON FAMILIES THAT BECOME IN-
ELIGIBLE TO RECEIVE ASSISTANCE.—The report re-
quired by paragraph (1) for a fiscal quarter shall in-
clude for each month in the quarter the number of
families and total number of individuals that, during
the month, became ineligible to receive assistance
under the State program funded under this part
(broken down by the number of families that become
so ineligible due to earnings, changes in family com-
position that result in increased earnings, sanctions,
time limits, or other specified reasons).’’.
(e) REGULATIONS.—Section 411(a)(7) (42 U.S.C.
611(a)(7)) is amended—
(1) by inserting ‘‘and to collect the necessary
data’’ before ‘‘with respect to which reports’’;
(2) by striking ‘‘subsection’’ and inserting ‘‘sec-
tion’’; and
(3) by striking ‘‘in defining the data elements’’
and all that follows and inserting ‘‘, the National
Governors’ Association, the American Public Human
Services Association, the National Conference of
State Legislators, and others in defining the data
elements.’’.
(f) ADDITIONAL REPORTS BY STATES.—Section 411
(42 U.S.C. 611) is amended—
(1) by redesignating subsection (b) as sub-
section (e); and
(2) by inserting after subsection (a) the fol-
lowing:
‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERIS-
TICS.—Not later than 90 days after the end of each fiscal
year, each eligible State shall submit to the Secretary a
report on the characteristics of the State program funded
under this part and other State programs funded with
qualified State expenditures (as defined in section
409(a)(7)(B)(i)). The report shall include, with respect to
each such program, the program name, a description of
program activities, the program purpose, the program eli-
gibility criteria, the sources of program funding, the num-
ber of program beneficiaries, sanction policies, and any
program work requirements.
‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not later
than 3 months after the end of a calendar month that
begins 1 year or more after the enactment of this sub-
section, each eligible State shall submit to the Secretary
report on the number of families and total number of indi-
viduals receiving assistance in the calendar month under
the State program funded under this part.
‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVE-
MENT.—Beginning with fiscal year 2004, not later than
January 1 of each fiscal year, each eligible State shall sub-
mit to the Secretary a report on achievement and improve-
ment during the preceding fiscal year under the numerical
performance goals and measures under the State program
funded under this part with respect to each of the matters
described in section 402(a)(1)(A)(v).’’.
(g) ANNUAL REPORTS TO CONGRESS BY THE SEC-
RETARY.—Section 411(e), as so redesignated by sub-
section (f) of this section, is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘and each fiscal year thereafter’’ and insert-
ing ‘‘and by July 1 of each fiscal year thereafter’’;
(2) in paragraph (2), by striking ‘‘families ap-
plying for assistance,’’ and by striking the last
comma; and
(3) in paragraph (3), by inserting ‘‘and other
programs funded with qualified State expenditures
(as defined in section 409(a)(7)(B)(i))’’ before the
semicolon.
SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
(a) TRIBAL FAMILY ASSISTANCE GRANT.—Section
412(a)(1) (42 U.S.C. 612(a)(1)) is amended by striking
‘‘1997, 1998, 1999, 2000, and 2001’’ and inserting ‘‘2003
through 2007’’.
(b) GRANTS FOR INDIAN TRIBES THAT RECEIVED
JOBS FUNDS.—Section 412(a)(2) (42 U.S.C. 612(a)(2))
is amended by striking ‘‘1997, 1998, 1999, 2000, and
2001’’ and inserting ‘‘2003 through 2007’’.
SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
(a) SECRETARY’S
FUND
FOR
RESEARCH, DEM-
ONSTRATIONS, AND TECHNICAL ASSISTANCE.—Section
413 (42 U.S.C. 613), as amended by section 112 of this
Act, is further amended by adding at the end the fol-
lowing:
‘‘(l) FUNDING FOR RESEARCH, DEMONSTRATIONS,
AND TECHNICAL ASSISTANCE.—Out of any money in the
Treasury of the United States not otherwise appropriated,
there are appropriated $100,000,000 for each of fiscal
years 2003 through 2007, which shall be available to the
Secretary for the purpose of conducting and supporting
research and demonstration projects by public or private
entities, and providing technical assistance to States, In-
dian tribal organizations, and such other entities as the
Secretary may specify that are receiving a grant under
this part, which shall be expended primarily on activities
described in section 403(a)(2)(B), and which shall be in
addition to any other funds made available under this
part.’’.
(b) FUNDING OF STUDIES AND DEMONSTRATIONS.—
Section 413(h) (42 U.S.C. 613(h)) is amended by striking
‘‘1997 through 2002’’ and inserting ‘‘2003 through
2007’’.
SEC. 116. STUDY BY THE CENSUS BUREAU.
Section 414(b) (42 U.S.C. 614(b)) is amended by
striking ‘‘1996,’’ and all that follows through ‘‘2002’’ and
inserting ‘‘2003 through 2007’’.
SEC. 117. REPEAL OF WAIVER CONTINUATION AUTHORITY.
Section 415 (42 U.S.C. 615) is repealed.
SEC. 118. DEFINITION OF ASSISTANCE.
(a) IN GENERAL.—Section 419 (42 U.S.C. 619) is
amended by adding at the end the following:
‘‘(6) ASSISTANCE.—
‘‘(A) IN GENERAL.—The term ‘assistance’
means payment, by cash, voucher, or other
means, to or for an individual or family for the
purpose of meeting a subsistence need of the in-
dividual or family (including food, clothing,
shelter, and related items, but not including
costs of transportation or child care).
‘‘(B) EXCEPTION.—The term ‘assistance’
does not include a payment described in sub-
paragraph (A) to or for an individual or family
on a short-term, nonrecurring basis (as defined
by the State in accordance with regulations pre-
scribed by the Secretary).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is
amended by striking ‘‘assistance’’ and inserting
‘‘aid’’.
(2) Section 404(f) (42 U.S.C. 604(f)) is amend-
ed by striking ‘‘assistance’’ and inserting ‘‘benefits
or services’’
(3) 
Section 
408(a)(5)(B)(i) 
(42 
U.S.C.
608(a)(5)(B)(i)) is amended in the heading by strik-
ing ‘‘ASSISTANCE’’ and inserting ‘‘AID’’.
SEC. 119. TECHNICAL CORRECTIONS.
(a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is
amended by inserting a comma after ‘‘appropriate’’.
(b) 
Section 
411(a)(1)(A)(ii)(III) 
(42 
U.S.C.
611(a)(1)(A)(ii)(III)) is amended by striking the last close
parenthesis.
(c) Section 413(j)(2)(A) (42 U.S.C. 613(i)(2)(A)) is
amended by striking ‘‘section’’ and inserting ‘‘sections’’.
(d)(1) Section 413 (42 U.S.C. 613) is amended by
striking subsection (g) and redesignating subsections (h)
through (i) and subsections (k) and (l) (as added by sec-
tions 112(b) and 115(a) of this Act, respectively) as sub-
sections (g) through (k), respectively.
(2) Each of the following provisions is amended by
striking ‘‘413(j)’’ and inserting ‘‘413(i)’’:
(A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C.
603(a)(5)(A)(ii)(III)).
(B) 
Section 
403(a)(5)(F) 
(42 
U.S.C.
603(a)(5)(F)).
(C) 
Section 
403(a)(5)(G)(ii) 
(42 
U.S.C.
603(a)(5)(G)(ii)).
(D) 
Section 
412(a)(3)(B)(iv) 
(42 
U.S.C.
612(a)(3)(B)(iv)).
SEC. 120. FATHERHOOD PROGRAM.
(a) SHORT TITLE.—This section may be cited as the
‘‘Promotion and Support of Responsible Fatherhood and
Healthy Marriage Act of 2002’’.
(b) FATHERHOOD PROGRAM.—Title IV (42 U.S.C.
601–619) is amended by inserting after part B the fol-
lowing:
‘‘PART C—FATHERHOOD PROGRAM
‘‘SEC. 441. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—The Congress finds that there is
substantial evidence strongly indicating the urgent need
to promote and support involved, committed, and respon-
sible fatherhood, and to encourage and support healthy
marriages between parents raising children, including data
demonstrating the following:
‘‘(1) In approximately 90 percent of cases
where a parent is absent, that parent is the father.
‘‘(2) By some estimates, 60 percent of children
born in the 1990’s will spend a significant portion
of their childhood in a home without a father.
‘‘(3) Nearly 75 percent of children in single-
parent homes will experience poverty before they are
11 years old, compared with only 20 percent of chil-
dren in 2-parent families.
‘‘(4) Low income is positively correlated with
children’s difficulties with education, social adjust-
ment, and delinquency, and single-parent households
constitute a disproportionate share of low-income
households.
‘‘(5) Where families (whether intact or with a
parent absent) are living in poverty, a significant
factor is the father’s lack of job skills.
‘‘(6) Children raised in 2-parent married fami-
lies, on average, fare better as a group in key areas,
including better school performance, reduced rates of
substance abuse, crime, and delinquency, fewer
health, emotional, and behavioral problems, lower
rates of teenage sexual activity, less risk of abuse or
neglect, and lower risk of teen suicide.
‘‘(7) Committed and responsible fathering dur-
ing infancy and early childhood contributes to the
development of emotional security, curiosity, and
math and verbal skills.
‘‘(8) An estimated 24,000,000 children (33.5
percent) live apart from their biological father.
‘‘(9) A recent national survey indicates that of
all children under age 18 not living with their bio-
logical father, 29 percent had not seen their father
even once in the last 12 months.
‘‘(b) PURPOSES.—The purposes of this part are:
‘‘(1) To provide for projects and activities by
public entities and by nonprofit community entities,
including religious organizations, designed to test
promising approaches to accomplishing the following
objectives:
‘‘(A) Promoting responsible, caring, and
effective parenting through counseling, men-
toring, and parenting education, dissemination
of educational materials and information on
parenting skills, encouragement of positive fa-
ther involvement, including the positive involve-
ment of nonresident fathers, and other meth-
ods.
‘‘(B) Enhancing the abilities and commit-
ment of unemployed or low-income fathers to
provide material support for their families and
to avoid or leave welfare programs by assisting
them to take full advantage of education, job
training, and job search programs, to improve
work habits and work skills, to secure career
advancement by activities such as outreach and
information dissemination, coordination, as ap-
propriate, with employment services and job
training programs, including the One-Stop de-
livery system established under title I of the
Workforce Investment Act of 1998, encourage-
ment and support of regular and timely pay-
ment of child support in appropriate cases, and
other methods.
‘‘(C) Improving fathers’ ability to effec-
tively manage family business affairs by means
such as education, counseling, and mentoring in
matters 
including 
household 
management,
budgeting, banking, and handling of financial
transactions, time management, and home
maintenance.
‘‘(D) Encouraging and supporting healthy
marriages and married fatherhood through such
activities as premarital education, including the
use of premarital inventories, marriage prepara-
tion programs, skills-based marriage education
programs, marital therapy, couples counseling,
divorce education and reduction programs, di-
vorce mediation and counseling, relationship
skills enhancement programs, including those
designed to reduce child abuse and domestic vi-
olence, and dissemination of information about
the benefits of marriage for both parents and
children.
‘‘(2) Through the projects and activities de-
scribed in paragraph (1), to improve outcomes for
children with respect to measures such as increased
family income and economic security, improved
school performance, better health, improved emo-
tional and behavioral stability and social adjustment,
and reduced risk of delinquency, crime, substance
abuse, child abuse and neglect, teen sexual activity,
and teen suicide.
‘‘(3) To evaluate the effectiveness of various ap-
proaches and to disseminate findings concerning out-
comes and other information in order to encourage
and facilitate the replication of effective approaches
to accomplishing these objectives.
‘‘SEC. 442. DEFINITIONS.
‘‘In this part, the terms ‘Indian tribe’ and ‘tribal or-
ganization’ have the meanings given them in subsections
(e) and (l), respectively, of section 4 of the Indian Self-
Determination and Education Assistance Act.
‘‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.
‘‘(a) IN GENERAL.—The Secretary may make grants
for fiscal years 2003 through 2007 to public and nonprofit
community entities, including religious organizations, and
to Indian tribes and tribal organizations, for demonstra-
tion service projects and activities designed to test the ef-
fectiveness of various approaches to accomplish the objec-
tives specified in section 441(b)(1).
‘‘(b) ELIGIBILITY CRITERIA
FOR FULL SERVICE
GRANTS.—In order to be eligible for a grant under this
section, except as specified in subsection (c), an entity
shall submit an application to the Secretary containing the
following:
‘‘(1) PROJECT
DESCRIPTION.—A statement
including—
‘‘(A) a description of the project and how
it will be carried out, including the geographical
area to be covered and the number and charac-
teristics of clients to be served, and how it will
address each of the 4 objectives specified in sec-
tion 441(b)(1); and
‘‘(B) a description of the methods to be
used by the entity or its contractor to assess
the extent to which the project was successful
in accomplishing its specific objectives and the
general objectives specified in section 441(b)(1).
‘‘(2) EXPERIENCE
AND
QUALIFICATIONS.—A
demonstration of ability to carry out the project, by
means such as demonstration of experience in suc-
cessfully carrying out projects of similar design and
scope, and such other information as the Secretary
may find necessary to demonstrate the entity’s ca-
pacity to carry out the project, including the entity’s
ability to provide the non-Federal share of project
resources.
‘‘(3) ADDRESSING CHILD ABUSE AND NEGLECT
AND
DOMESTIC
VIOLENCE.—A description of how
the entity will assess for the presence of, and inter-
vene to resolve, domestic violence and child abuse
and neglect, including how the entity will coordinate
with State and local child protective service and do-
mestic violence programs.
‘‘(4) ADDRESSING
CONCERNS
RELATING
TO
SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A com-
mitment to make available to each individual partici-
pating in the project education about alcohol, to-
bacco, and other drugs, and about the health risks
associated with abusing such substances, and infor-
mation about diseases and conditions transmitted
through substance abuse and sexual contact, includ-
ing HIV/AIDS, and to coordinate with providers of
services addressing such problems, as appropriate.
‘‘(5) COORDINATION
WITH
SPECIFIED
PRO-
GRAMS.—An undertaking to coordinate, as appro-
priate, with State and local entities responsible for
the programs under parts A, B, and D of this title,
including programs under title I of the Workforce
Investment Act of 1998 (including the One-Stop de-
livery system), and such other programs as the Sec-
retary may require.
‘‘(6) RECORDS, REPORTS, AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits as
the Secretary may find necessary for purposes of
oversight of project activities and expenditures.
‘‘(7) SELF-INITIATED EVALUATION.—If the en-
tity elects to contract for independent evaluation of
the project (part or all of the cost of which may be
paid for using grant funds), a commitment to sub-
mit to the Secretary a copy of the evaluation report
within 30 days after completion of the report and
not more than 1 year after completion of the project.
‘‘(8) COOPERATION WITH SECRETARY’S OVER-
SIGHT AND EVALUATION.—An agreement to cooper-
ate with the Secretary’s evaluation of projects as-
sisted under this section, by means including ran-
dom assignment of clients to service recipient and
control groups, if determined by the Secretary to be
appropriate, and affording the Secretary access to
the project and to project-related records and docu-
ments, staff, and clients.
‘‘(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE
GRANTS.—In order to be eligible for a grant under this
section in an amount under $25,000 per fiscal year, an
entity shall submit an application to the Secretary con-
taining the following:
‘‘(1) PROJECT DESCRIPTION.—A description of
the project and how it will be carried out, including
the number and characteristics of clients to be
served, the proposed duration of the project, and
how it will address at least 1 of the 4 objectives
specified in section 441(b)(1).
‘‘(2) QUALIFICATIONS.—Such information as
the Secretary may require as to the capacity of the
entity to carry out the project, including any pre-
vious experience with similar activities.
‘‘(3) COORDINATION
WITH
RELATED
PRO-
GRAMS.—As required by the Secretary in appro-
priate cases, an undertaking to coordinate and co-
operate with State and local entities responsible for
specific programs relating to the objectives of the
project including, as appropriate, jobs programs and
programs serving children and families.
‘‘(4) RECORDS, REPORTS, AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits as
the Secretary may find necessary for purposes of
oversight of project activities and expenditures.
‘‘(5) COOPERATION WITH SECRETARY’S OVER-
SIGHT AND EVALUATION.—An agreement to cooper-
ate with the Secretary’s evaluation of projects as-
sisted under this section, by means including afford-
ing the Secretary access to the project and to
project-related records and documents, staff, and cli-
ents.
‘‘(d) CONSIDERATIONS IN AWARDING GRANTS.—
‘‘(1) DIVERSITY
OF
PROJECTS.—In awarding
grants under this section, the Secretary shall seek to
achieve a balance among entities of differing sizes,
entities in differing geographic areas, entities in
urban and in rural areas, and entities employing dif-
fering methods of achieving the purposes of this sec-
tion.
‘‘(2) PREFERENCE
FOR
PROJECTS
SERVING
LOW-INCOME FATHERS.—In awarding grants under
this section, the Secretary may give preference to
applications for projects in which a majority of the
clients to be served are low-income fathers.
‘‘(e) FEDERAL SHARE.—
‘‘(1) IN GENERAL.—Grants for a project under
this section for a fiscal year shall be available for a
share of the cost of such project in such fiscal year
equal to—
‘‘(A) up to 80 percent (or up to 90 per-
cent, if the entity demonstrates to the Sec-
retary’s satisfaction circumstances limiting the
entity’s ability to secure non-Federal resources)
in the case of a project under subsection (b);
and
‘‘(B) up to 100 percent, in the case of a
project under subsection (c).
‘‘(2) NON-FEDERAL SHARE.—The non-Federal
share may be in cash or in kind. In determining the
amount of the non-Federal share, the Secretary may
attribute fair market value to goods, services, and
facilities contributed from non-Federal sources.
‘‘SEC. 
444. 
MULTICITY, 
MULTISTATE 
DEMONSTRATION
PROJECTS.
‘‘(a) IN GENERAL.—The Secretary may make grants
under this section for fiscal years 2003 through 2007 to
eligible entities (as specified in subsection (b)) for 2
multicity, multistate projects demonstrating approaches to
achieving the objectives specified in section 441(b)(1). One
of the projects shall test the use of married couples to
deliver program services.
‘‘(b) ELIGIBLE ENTITIES.—An entity eligible for a
grant under this section must be a national nonprofit fa-
therhood promotion organization that meets the following
requirements:
‘‘(1) EXPERIENCE
WITH
FATHERHOOD
PRO-
GRAMS.—The organization must have substantial ex-
perience in designing and successfully conducting
programs that meet the purposes described in sec-
tion 441.
‘‘(2) 
EXPERIENCE
WITH
MULTICITY,
MULTISTATE PROGRAMS AND GOVERNMENT COORDI-
NATION.—The organization must have experience in
simultaneously conducting such programs in more
than 1 major metropolitan area in more than 1
State and in coordinating such programs, where ap-
propriate, with State and local government agencies
and private, nonprofit agencies (including commu-
nity-based and religious organizations), including
State or local agencies responsible for child support
enforcement and workforce development.
‘‘(c) APPLICATION REQUIREMENTS.—In order to be
eligible for a grant under this section, an entity must sub-
mit to the Secretary an application that includes the fol-
lowing:
‘‘(1) QUALIFICATIONS.—
‘‘(A) ELIGIBLE ENTITY.—A demonstration
that the entity meets the requirements of sub-
section (b).
‘‘(B) OTHER.—Such other information as
the Secretary may find necessary to dem-
onstrate the entity’s capacity to carry out the
project, including the entity’s ability to provide
the non-Federal share of project resources.
‘‘(2) PROJECT DESCRIPTION.—A description of
and commitments concerning the project design, in-
cluding the following:
‘‘(A) IN GENERAL.—A detailed description
of the proposed project design and how it will
be carried out, which shall—
‘‘(i) provide for the project to be con-
ducted in at least 3 major metropolitan
areas;
‘‘(ii) state how it will address each of
the 4 objectives specified in section
441(b)(1);
‘‘(iii) demonstrate that there is a suf-
ficient number of potential clients to allow
for the random selection of individuals to
participate in the project and for compari-
sons with appropriate control groups com-
posed of individuals who have not partici-
pated in such projects; and
‘‘(iv) demonstrate that the project is
designed to direct a majority of project re-
sources to activities serving low-income fa-
thers (but the project need not make serv-
ices available on a means-tested basis).
‘‘(B) OVERSIGHT, EVALUATION, AND AD-
JUSTMENT
COMPONENT.—An agreement that
the entity—
‘‘(i) in consultation with the evaluator
selected pursuant to section 445, and as
required by the Secretary, will modify the
project design, initially and (if necessary)
subsequently throughout the duration of
the project, in order to facilitate ongoing
and final oversight and evaluation of
project operation and outcomes (by means
including, to the maximum extent feasible,
random assignment of clients to service re-
cipient and control groups), and to provide
for mid-course adjustments in project de-
sign indicated by interim evaluations;
‘‘(ii) will submit to the Secretary re-
vised descriptions of the project design as
modified in accordance with clause (i); and
‘‘(iii) will cooperate fully with the Sec-
retary’s ongoing oversight and ongoing and
final evaluation of the project, by means
including affording the Secretary access to
the project and to project-related records
and documents, staff, and clients.
‘‘(3) ADDRESSING CHILD ABUSE AND NEGLECT
AND
DOMESTIC
VIOLENCE.—A description of how
the entity will assess for the presence of, and inter-
vene to resolve, domestic violence and child abuse
and neglect, including how the entity will coordinate
with State and local child protective service and do-
mestic violence programs.
‘‘(4) ADDRESSING
CONCERNS
RELATING
TO
SUBSTANCE ABUSE AND SEXUAL ACTIVITY.—A com-
mitment to make available to each individual partici-
pating in the project education about alcohol, to-
bacco, and other drugs, and about the health risks
associated with abusing such substances, and infor-
mation about diseases and conditions transmitted
through substance abuse and sexual contact, includ-
ing HIV/AIDS, and to coordinate with providers of
services addressing such problems, as appropriate.
‘‘(5) COORDINATION
WITH
SPECIFIED
PRO-
GRAMS.—An undertaking to coordinate, as appro-
priate, with State and local entities responsible for
the programs funded under parts A, B, and D of
this title, programs under title I of the Workforce
Investment Act of 1998 (including the One-Stop de-
livery system), and such other programs as the Sec-
retary may require.
‘‘(6) RECORDS, REPORTS, AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits (in
addition to those required under the preceding provi-
sions of paragraph (2)) as the Secretary may find
necessary for purposes of oversight of project activi-
ties and expenditures.
‘‘(d) FEDERAL SHARE.—
‘‘(1) IN GENERAL.—Grants for a project under
this section for a fiscal year shall be available for up
to 80 percent of the cost of such project in such fis-
cal year.
‘‘(2) NON-FEDERAL SHARE.—The non-Federal
share may be in cash or in kind. In determining the
amount of the non-Federal share, the Secretary may
attribute fair market value to goods, services, and
facilities contributed from non-Federal sources.
‘‘SEC. 445. EVALUATION.
‘‘(a) IN GENERAL.—The Secretary, directly or by
contract or cooperative agreement, shall evaluate the effec-
tiveness of service projects funded under sections 443 and
444 from the standpoint of the purposes specified in sec-
tion 441(b)(1).
‘‘(b) 
EVALUATION
METHODOLOGY.—Evaluations
under this section shall—
‘‘(1) include, to the maximum extent feasible,
random assignment of clients to service delivery and
control groups and other appropriate comparisons of
groups of individuals receiving and not receiving
services;
‘‘(2) describe and measure the effectiveness of
the projects in achieving their specific project goals;
and
‘‘(3) describe and assess, as appropriate, the
impact of such projects on marriage, parenting, do-
mestic violence, child abuse and neglect, money man-
agement, employment and earnings, payment of
child support, and child well-being, health, and edu-
cation.
‘‘(c) EVALUATION REPORTS.—The Secretary shall
publish the following reports on the results of the evalua-
tion:
‘‘(1) An implementation evaluation report cov-
ering the first 24 months of the activities under this
part to be completed by 36 months after initiation
of such activities.
‘‘(2) A final report on the evaluation to be com-
pleted by September 30, 2010.
‘‘SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.
‘‘The Secretary is authorized, by grant, contract, or
cooperative agreement, to carry out projects and activities
of national significance relating to fatherhood promotion,
including—
‘‘(1) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—Assisting States, communities, and
private entities, including religious organizations, in
efforts to promote and support marriage and respon-
sible fatherhood by collecting, evaluating, developing,
and making available (through the Internet and by
other means) to all interested parties information re-
garding approaches to accomplishing the objectives
specified in section 441(b)(1).
‘‘(2) 
MEDIA
CAMPAIGN.—Developing, 
pro-
moting, and distributing to interested States, local
governments, public agencies, and private nonprofit
organizations, including charitable and religious or-
ganizations, a media campaign that promotes and
encourages involved, committed, and responsible fa-
therhood and married fatherhood.
‘‘(3) TECHNICAL ASSISTANCE.—Providing tech-
nical assistance, including consultation and training,
to public and private entities, including community
organizations and faith-based organizations, in the
implementation of local fatherhood promotion pro-
grams.
‘‘(4) RESEARCH.—Conducting research related
to the purposes of this part.
‘‘SEC. 447. NONDISCRIMINATION.
‘‘The projects and activities assisted under this part
shall be available on the same basis to all fathers and ex-
pectant fathers able to benefit from such projects and ac-
tivities, including married and unmarried fathers and cus-
todial and noncustodial fathers, with particular attention
to low-income fathers, and to mothers and expectant
mothers on the same basis as to fathers.
‘‘SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RES-
ERVATION FOR CERTAIN PURPOSE.
‘‘(a) AUTHORIZATION.—There are authorized to be
appropriated $20,000,000 for each of fiscal years 2003
through 2007 to carry out the provisions of this part.
‘‘(b) RESERVATION.—Of the amount appropriated
under this section for each fiscal year, not more than 15
percent shall be available for the costs of the multicity,
multistate demonstration projects under section 444, eval-
uations under section 445, and projects of national signifi-
cance under section 446.’’.
TITLE II—CHILD CARE
SEC. 201. ENTITLEMENT FUNDING.
Section 418(a)(3)(F) (42 U.S.C. 618(a)(3)(F)) is
amended to read as follows:
‘‘(F) $2,717,000,000 for each of fiscal
years 2002 through 2007.’’.
TITLE III—CHILD SUPPORT
SEC. 301. FEDERAL MATCHING FUNDS FOR LIMITED PASS
THROUGH OF CHILD SUPPORT PAYMENTS TO
FAMILIES RECEIVING TANF.
(a) IN
GENERAL.—Section 457(a) (42 U.S.C.
657(a)) is amended—
(1) in paragraph (1)(A), by inserting ‘‘subject
to paragraph (7)’’ before the semicolon; and
(2) by adding at the end the following:
‘‘(7) FEDERAL MATCHING FUNDS FOR LIMITED
PASS THROUGH OF CHILD SUPPORT PAYMENTS TO
FAMILIES RECEIVING TANF.—Notwithstanding para-
graph (1), a State shall not be required to pay to
the Federal Government the Federal share of an
amount collected during a month on behalf of a fam-
ily that is a recipient of assistance under the State
program funded under part A, to the extent that—
‘‘(A) the State distributes the amount to
the family;
‘‘(B) the total of the amounts so distrib-
uted to the family during the month—
‘‘(i) exceeds the amount (if any) that,
as of December 31, 2001, was required
under State law to be distributed to a fam-
ily under paragraph (1)(B); and
‘‘(ii) does not exceed the greater of—
‘‘(I) $100; or
‘‘(II) $50 plus the amount de-
scribed in clause (i); and
‘‘(C) the amount is disregarded in deter-
mining the amount and type of assistance pro-
vided to the family under the State program
funded under part A.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to amounts distributed on or
after October 1, 2004.
SEC. 302. STATE OPTION TO PASS THROUGH ALL CHILD
SUPPORT PAYMENTS TO FAMILIES THAT
FORMERLY RECEIVED TANF.
(a) IN
GENERAL.—Section 457(a) (42 U.S.C.
657(a)), as amended by section 301 of this Act, is
amended—
(1) in paragraph (2)(B), in the matter pre-
ceding clause (i), by inserting ‘‘, except as provided
in paragraph (8),’’ after ‘‘shall’’; and
(2) by adding at the end the following:
‘‘(8) STATE
OPTION
TO
PASS
THROUGH
ALL
CHILD SUPPORT PAYMENTS TO FAMILIES THAT FOR-
MERLY RECEIVED TANF.—In lieu of applying para-
graph (2) to any family described in paragraph (2),
a State may distribute to the family all of any
amount so collected during a month on behalf of the
family.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to amounts distributed on or
after October 1, 2004.
SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF
CHILD SUPPORT ORDERS FOR FAMILIES RE-
CEIVING TANF.
(a) IN
GENERAL.—Section 466(a)(10)(A)(i) (42
U.S.C. 666(a)(10)(A)(i)) is amended—
(1) by striking ‘‘parent, or,’’ and inserting
‘‘parent or’’; and
(2) by striking ‘‘upon the request of the State
agency under the State plan or of either parent,’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2004.
SEC. 304. MANDATORY FEE FOR SUCCESSFUL CHILD SUP-
PORT COLLECTION FOR FAMILY THAT HAS
NEVER RECEIVED TANF.
(a) IN GENERAL.—Section 454(6)(B) (42 U.S.C.
654(6)(B)) is amended—
(1) by inserting ‘‘(i) except as provided in
clause (ii),’’ after ‘‘(B)’’;
(2) by redesignating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively; and
(3) by adding at the end the following new
clause:
‘‘(ii) in the case of an individual who has never
received assistance under a State program funded
under part A, the State shall impose an annual fee
of $25 for furnishing the services, which shall be
paid by the individual applying for the services, or
recovered from the absent parent, or paid by the
State out of its own funds (the payment of which
from State funds shall not be considered as an ad-
ministrative cost of the State for the operation of
the plan, and shall be considered income to the pro-
gram);’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2003.
SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT
PAYMENTS.
Not later than 6 months after the date of the enact-
ment of this Act, the Secretary of Health and Human
Services shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee
on Finance of the Senate a report on the procedures that
the States use generally to locate custodial parents for
whom child support has been collected but not yet distrib-
uted due to a change in address. The report shall include
an estimate of the total amount of such undistributed
child support and the average length of time it takes for
such child support to be distributed. The Secretary shall
include in the report recommendations as to whether addi-
tional procedures should be established at the State or