‘‘(I) for assistance under the pro-
gram funded under this part of the 
entity (including, in the case of a 
State, any qualified State expendi-
tures 
(as 
defined 
in 
section 
409(a)(7)(B)(i)) and any expenditures 
under any other State program fund-
ed by such expenditures); 
‘‘(II) for child care; 
‘‘(III) for subsidized employment 
under the program funded under this 
part of the entity (including, in the 
case of a State, such expenditures 
under any other State program fund-
ed by qualified State expenditures (as 
defined in section 409(a)(7)(B)(i))), 
other than expenditures made using 
Federal funds or with respect to 
which the entity received a grant 
made under paragraph (3) of this 
subsection; and 
‘‘(IV) for administrative costs as-
sociated with making the expenditures 
referred to in the preceding sub-
clauses of this clause. 
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‘‘(ii) CHILD CARE EXPENDITURES.— 
For purposes of clause (i), expenditures for 
child care consist of the following: 
‘‘(I) Amounts transferred under 
section 404(d)(1)(B). 
‘‘(II) Expenditures for child care 
assistance from Federal funds pro-
vided under this part. 
‘‘(III) In the case of an entity 
that is a State, expenditures for child 
care assistance that are qualified 
State expenditures (as defined in sec-
tion 409(a)(7)(B)(i)), but only to the 
extent exceeding the total expendi-
tures of the State (other than from 
Federal funds) for child care in fiscal 
year 1994 or 1995 (whichever is the 
greater). 
‘‘(iii) AUTHORITY
TO
COLLECT
AND 
ADJUST
DATA.—In 
determining 
the 
amount of the expenditures of a State for 
basic assistance, child care, and subsidized 
employment, during any period for which 
the State requests funds under this sub-
section, and during the base year of the 
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State, the Secretary may make appropriate 
adjustments to the data, on a State-by- 
State basis, to ensure that the data are 
comparable with respect to the groups of 
families served and the types of aid pro-
vided. The Secretary may develop a mecha-
nism for collecting expenditure data, in-
cluding procedures which allow States to 
make reasonable estimates, and may set 
deadlines for making revisions to the data. 
‘‘(4) USE OF GRANT.—Each State to which a 
grant is made under this subsection shall use the 
grant to serve areas of the State with the greatest 
need (as referred to in section 402(a)(1)(A)). 
‘‘(5) APPROPRIATION.— 
‘‘(A) IN GENERAL.—Out of any funds in 
the Treasury of the United States not otherwise 
appropriated, there are appropriated for pay-
ment to the Fund— 
‘‘(i) $2,500,000,000 for fiscal year 
2012; and 
‘‘(ii) for each succeeding fiscal year, 
the amount appropriated under this para-
graph for the then preceding fiscal year, 
increased by the percentage (if any) by 
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which the amount appropriated under sec-
tion 403(a)(1) for the fiscal year involved 
exceeds the amount appropriated under 
such section for the then preceding fiscal 
year. 
‘‘(B) 
AVAILABILITY.—Amounts 
made 
available under this paragraph for a fiscal year 
shall remain available until expended. 
‘‘(6) ACTIONS TO BE TAKEN IN ANTICIPATION 
OF
EXHAUSTION
OF
FUND.—The Secretary shall 
monitor the amount in, and the rate at which 
amounts are paid from, the Fund, and if the Sec-
retary determines that the Fund will be exhausted 
within 6 months, the Secretary shall— 
‘‘(A) notify the Congress of the determina-
tion; and 
‘‘(B) develop and communicate to each 
State and Indian tribe that is an economically 
needy entity as of the date of the determina-
tion, the procedure for allocating amounts in 
the Fund among such entities.’’. 
(2) ELIMINATION OF PENALTY FOR FAILURE 
OF STATE RECEIVING AMOUNTS FROM CONTINGENCY 
FUND TO MAINTAIN 100 PERCENT OF HISTORIC EF-
FORT.— 
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(A) IN
GENERAL.—Section 409(a) (42 
U.S.C. 609(a)) is amended by striking para-
graph (10) and redesignating paragraphs (11) 
through (15) as paragraphs (10) through (16), 
respectively. 
(B) CONFORMING AMENDMENTS.—Section 
409 (42 U.S.C. 609) is amended in each of sub-
sections (b)(2) and (c)(4), by striking ‘‘(10), 
(12), or (13)’’ and inserting ‘‘(11), or (12)’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) is amended 
by striking ‘‘needy State (as defined in section 
403(b)(6))’’ and inserting ‘‘economically needy enti-
ty (as defined in section 403(b)(3)(A))’’. 
(4) AMOUNTS
PROVIDED
TO
TERRITORIES 
FROM
THE
CONTINGENCY
FUND
TO
BE
DIS-
REGARDED FOR PURPOSES OF LIMITATION ON PAY-
MENTS TO THE TERRITORIES.—Section 1108(a)(2) 
(42 U.S.C. 1308(a)(2)) is amended by inserting 
‘‘403(b),’’ before ‘‘406,’’. 
(d) MATCHING GRANTS FOR SUBSIDIZED EMPLOY-
MENT.— 
(1) IN GENERAL.—Section 403(a) (42 U.S.C. 
603(a)), as amended by subsection (a)(2) of this sec-
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