individual (as defined in section 407(b)(2)(C)) 
receiving assistance under the State program 
funded under this part; 
‘‘(B) establish for each family that in-
cludes such an individual, in consultation as the 
State deems appropriate with the individual, a 
self-sufficiency plan that specifies appropriate 
activities described in the State plan submitted 
pursuant to section 402, including direct work 
activities as appropriate designed to assist the 
family in achieving their maximum degree of 
self-sufficiency, and that provides for the ongo-
ing participation of the individual in the activi-
ties; 
‘‘(C) require, at a minimum, each such in-
dividual to participate in activities in accord-
ance with the self-sufficiency plan; 
‘‘(D) monitor the participation of each 
such individual in the activities specified in the 
self sufficiency plan, and regularly review the 
progress of the family toward self-sufficiency; 
‘‘(E) upon such a review, revise the self-
sufficiency plan and activities as the State 
deems appropriate.
‘‘(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, 2005, 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 enactment of 
this subsection. 
‘‘(3) STATE DISCRETION.—A State shall have 
sole discretion, consistent with section 407, to define 
and design activities for families for purposes of this 
subsection, to develop methods for monitoring and 
reviewing progress pursuant to this subsection, and 
to make modifications to the plan as the State 
deems appropriate to assist the individual in increas-
ing their degree of self-sufficiency. 
‘‘(4) RULE OF INTERPRETATION.—Nothing in 
this part shall preclude a State from requiring par-
ticipation in work and any other activities the State 
deems appropriate for helping families achieve self-
sufficiency and improving child well-being.’’.
(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) ELIMINATION
OF
SEPARATE
PARTICIPATION 
RATE REQUIREMENTS FOR 2-PARENT FAMILIES.—
(1) Section 407 (42 U.S.C. 607) is amended in 
each of subsections (a) and (b) by striking para-
graph (2). 
(2) Section 407(b)(4) (42 U.S.C. 607(b)(4)) is 
amended by striking ‘‘paragraphs (1)(B) and 
(2)(B)’’ and inserting ‘‘paragraph (1)(B)’’. 
(3) Section 407(c)(1) (42 U.S.C. 607(c)(1)) is 
amended by striking subparagraph (B). 
(4) 
Section 
407(c)(2)(D) 
(42 
U.S.C. 
607(c)(2)(D)) is amended by striking ‘‘paragraphs 
(1)(B)(i) and (2)(B) of subsection (b)’’ and inserting 
‘‘subsection (b)(1)(B)(i)’’.
(b) WORK PARTICIPATION REQUIREMENTS.—Section 
407 (42 U.S.C. 607) is amended by striking all that pre-
cedes 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 2006; 
‘‘(2) 55 percent for fiscal year 2007; 
‘‘(3) 60 percent for fiscal year 2008; 
‘‘(4) 65 percent for fiscal year 2009; and 
‘‘(5) 70 percent for fiscal year 2010 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—