of 6 months after entry into the un-
subsidized employment. 
(V) EDUCATION OR TRAINING.— 
In any workweek in which a partici-
pant is scheduled to work at least 30 
hours in the program, not less than 
20 percent of the scheduled hours and 
not more than 50 percent of the 
scheduled hours shall involve partici-
pation in— 
(aa) education or training 
activities designed to improve the 
participant’s employability and 
potential earnings; 
(bb) other activities designed 
to reduce or eliminate any bar-
riers that may impede the par-
ticipant’s ability to secure and 
advance in unsubsidized employ-
ment; or 
(cc) activities designed to 
promote financial literacy and the 
use of products and services that 
increase personal savings and 
build financial assets for family 
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support, education, homeowner-
ship, and retirement. 
(VI) DURATION.— 
(aa) IN GENERAL.—Subject 
to item (bb), the duration of any 
placement in the program shall 
be for a minimum period of 3 
consecutive months. 
(bb) 
3-MONTH
EXTEN-
SION.—A 
program 
placement 
may be extended for up to 2 ad-
ditional consecutive 3-month pe-
riods upon the conclusion of the 
original 3-month placement pe-
riod if such extension would be 
consistent with the individual’s 
plan for transition to unsub-
sidized employment. 
(VII) SUPERVISION.—The work-
site employer or program operator 
shall supervise program participants, 
consistent with the goal of addressing 
the limited work experience and skills 
of the participants. 
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(D) REPORTS.—Not later than 120 days 
after the end of the grant period, the State 
shall submit a report to the Secretary of Labor 
that contains information on the number of 
participants in the program who have entered 
unsubsidized employment, the percentage of 
program participants who are employed during 
the second quarter after exit, the percentage of 
program participants who are employed during 
the fourth quarter after exit, the median earn-
ings of program participants during the second 
quarter after exit, the percentage of program 
participants who obtain an education or train-
ing credential during participation or within one 
year of exit, and demographic information re-
garding the participants. 
(E) TECHNICAL
ASSISTANCE.—The Sec-
retary of Labor shall enter into contracts with 
entities with demonstrated experience in the 
provision of transitional jobs to provide tech-
nical assistance to the program operators and 
worksite employers for the programs assisted 
under this paragraph. 
(2) PUBLIC-PRIVATE CAREER PATHWAYS PART-
NERSHIPS.— 
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(A) IN
GENERAL.—To allow workforce 
education providers representing career path-
way partnerships— 
(i) to create or expand career path-
ways, with groups of employers in specific 
industry or occupational sectors, for dis-
advantaged workers, which may include 
any mix of such employers’ existing lower 
wage employees, new hires or potential 
hires; or 
(ii) to fill in gaps in career pathways 
in particular localities or regions as needed 
to ensure that career pathways are acces-
sible to unemployed disadvantaged workers 
and at risk youth who have lower skills or 
limited 
English 
proficiency, 
including 
through the creation of workforce edu-
cation services, such as ‘‘bridge’’ programs 
that contextualize basic skills, English lan-
guage, or college remedial education serv-
ices to specific career pathways, and ef-
forts to create opportunities for gaining 
work experience in a career pathway. 
(B) USE OF FUNDS.—Funds made avail-
able under a grant under this paragraph may 
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be used by career pathways partnerships for 
any expense reasonably related to the accom-
plishment of the specific objectives of the part-
nership and the purpose described in this para-
graph, including any of the activities described 
in subsection (a)(2)(D). 
(C) LIMITATIONS.— 
(i) IN GENERAL.—Of the funds made 
available to a career pathway partnership 
to carry out the purpose described in this 
paragraph— 
(I) not more than 30 percent of 
such funds may be used to pay or 
subsidize wages during a period of 
work experience or internship, not to 
exceed 90 days; and 
(II) not more than 10 percent of 
such funds may be used for adminis-
trative purposes, but this limitation 
shall not apply to activities related to 
building and maintaining partner-
ships, including such activities as con-
ducting workforce needs assessments, 
brokering public-private and inter-
agency 
agreements, 
creating 
cus-
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tomized curricula, and developing 
work experience opportunities. 
(ii) PROHIBITION
ON
SUBSIDIZING 
WAGES
OF
CURRENT
EMPLOYEES.—No 
funds made available to carry out this 
paragraph shall be used to subsidize the 
wages of any individual who, as of the date 
of the establishment of the career pathway 
partnership, is an employee of any em-
ployer participating in the partnership. 
(D) REQUIREMENTS
FOR
AWARDING
OF 
SUBGRANTS.— 
(i) IN
GENERAL.—Funds shall be 
made available to career pathway partner-
ships to carry out the purpose described in 
this paragraph based on a performance- 
based accountability system that includes 
the following measures of performance: 
(I) The number of individuals to 
be trained. 
(II) The percentage of such indi-
viduals who complete the program. 
(III) The percentage of such in-
dividuals who enter or advance in em-
ployment. 
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(IV) The wage and benefit gains 
of individuals who complete the pro-
gram before and within 6 months 
after their program completion, in-
cluding the extent to which the indi-
viduals achieved economic self-suffi-
ciency. 
(V) The percentage of individuals 
who complete the program and enter 
employment who retain employment 
for at least 6 months. 
(VI) Where applicable, the per-
centage of individuals who owe child 
support and complete the program 
who improve in their payment of child 
support within 6 months after their 
program completion. 
In establishing goals for such measures, 
due consideration shall be given to the edu-
cation, work experience, and job readiness 
of the individuals expected to participate in 
the program, the barriers of such individ-
uals to employment, and the local job mar-
ket. 
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(ii) CONSIDERATIONS
FOR
FUNDING 
RENEWALS.—A subgrantee’s level of suc-
cess in achieving employment, advance-
ment, wage, and employment retention 
goals shall be a primary consideration for 
determining whether to renew a grant 
made to such entity and the funding level 
for such grant. 
(iii) PRIORITIES FOR AWARDS OF SUB-
GRANTS.—In awarding subgrants under 
this paragraph, a State shall give priority 
to applications that— 
(I) propose to serve areas of high 
poverty, high youth unemployment, 
high dropout rates, or high rates of 
low-income single-parent families; 
(II) include a substantial cash or 
in-kind match by all employers, in-
cluding joint labor-management pro-
grams where applicable, in the part-
nerships, such as paid release time for 
employed workforce education partici-
pants; 
(III) use instructional materials 
and instructors directly used in the 
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specific business or industry sectors of 
the partnership employers; 
(IV) link successful completion of 
workforce education services to wage 
increases, promotions or job hires; 
(V) will result in attainment of 
employer-recognized occupational and 
educational credentials; 
(VI) address career guidance and 
adult basic education and English lan-
guage needs as well as job-specific 
skills; 
(VII) demonstrate a blending of 
resources from partner agencies in the 
workforce system and other sectors 
and Federal programs, including su-
perior procedures for coordinating re-
sponsible fatherhood promotion activi-
ties, where appropriate, to support the 
development of high quality pathways; 
(VIII) identify how the sub-
grantee will maximize services to un-
employed disadvantaged workers who 
also face other barriers in the labor 
market, such as high school dropout, 
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offender status, aging out of foster 
care, low basic skill level, including 
limited English proficiency, learning 
disabilities, physical, emotional or be-
havior disabilities, or substance abuse 
recovery, which may be through direct 
relationships with local providers of 
transitional 
jobs 
programs 
under 
which in appropriate circumstances 
transitional jobs participants may ac-
cess career pathways programs upon 
completion of the transitional jobs 
program; and 
(IX) support collaboration, as ap-
propriate, between employers and 
labor organizations and other work-
force development professionals, in-
cluding joint labor management train-
ing and education programs where ap-
propriate. 
(E) DEFINITIONS.—In this paragraph: 
(i) ADULT
EDUCATION.—The term 
‘‘adult education’’ has the meaning given 
that term in section 203 of the Workforce 
Investment Act of 1998 (20 U.S.C. 9202). 
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(ii) CAREER
PATHWAY.—The term 
‘‘career pathway’’ means a linked set of 
workforce education and job opportunities 
within a specific industry sector, or for an 
occupational sector that cuts across mul-
tiple business and industry sectors, which 
begins at the lowest skill and English lan-
guage levels, and extends through for-cred-
it college opportunities such as earning rel-
evant associate or bachelor’s degrees, and 
prepares individuals for advancement in 
jobs in demand in the local or regional 
labor market. 
(iii) COMMUNITY-BASED PROVIDER.— 
The term ‘‘community-based provider’’ 
means a not-for-profit organization, with 
local boards of directors, that directly pro-
vides workforce education services. 
(iv) INSTITUTION
OF
HIGHER
EDU-
CATION.—The term ‘‘institution of higher 
education’’ has the meaning given that 
term in section 101 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001). 
(v) CHARTER
SCHOOL.—The term 
‘‘charter school’’ has the meaning given 
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that term in section 5210 of the Elemen-
tary and Secondary Education Act of 1965 
(20 U.S.C. 7221i). 
(vi) AREA
VOCATIONAL
EDUCATION 
SCHOOL.—The term ‘‘area vocational and 
technical education school’’ has the mean-
ing given that term in section 3 of the Carl 
D. Perkins Vocational and Technical Edu-
cation Act of 1998 (20 U.S.C. 2302). 
(vii) DISADVANTAGED
WORKERS.— 
The term ‘‘disadvantaged workers’’ means 
unemployed 
individuals 
in 
low-income 
households or employed individuals in low- 
income households with wages at or below 
2⁄3 of the median wage for the State or re-
gion applying for the grant. 
(viii) CAREER
PATHWAY
PARTNER-
SHIP.—The term ‘‘career pathway partner-
ship’’ means collaborations of 1 or more 
workforce education providers, 1 or more 
employers, 1 or more labor organizations, 
where applicable, as a result of such orga-
nization’s representation of employees at 
the worksite who have skills in which the 
training or employment programs are pro-
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posed, and may include optional additional 
entities as needed to provide a comprehen-
sive range of workforce education and an-
cillary support services. 
(ix) WORKFORCE
EDUCATION.—The 
term ‘‘workforce education’’ means a set of 
career guidance and exploration services, 
adult education and English language serv-
ices, job training, registered apprenticeship 
programs, and credit and noncredit post-
secondary education services aimed at pre-
paring individuals to enter and sustain em-
ployment in specific occupations and to 
have the sufficient skills to respond to 
shifting employment opportunities. 
(x) WORKFORCE
EDUCATION
PRO-
VIDER.—The term ‘‘workforce education 
provider’’ means community-based pro-
viders, institutions of higher education, 
area vocational and technical education 
schools, charter schools, and other public 
nonprofit entities that have a demonstrated 
capacity to provide quality workforce edu-
cation services. 
(c) MATCHING REQUIREMENT.— 
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(1) IN GENERAL.—The Secretary of Health and 
Human Services and the Secretary of Labor may 
not award a grant to a State under this section un-
less the State agrees that, with respect to the costs 
to be incurred by the State in conducting a dem-
onstration project with funds provided under the 
grant, the State will make available non-Federal 
contributions in an amount equal to 10 percent of 
the amount of Federal funds paid to the State under 
such grant. 
(2) NON-FEDERAL
CONTRIBUTIONS.—In this 
subsection, the term ‘‘non-Federal contributions’’ in-
cludes contributions by the State and by public and 
private entities that may be in cash or in kind, but 
does not include any amounts provided by the Fed-
eral Government, or services assisted or subsidized 
to any significant extent by the Federal Government, 
or any amount expended by a State before October 
1, 2007. 
(d) WORKER PROTECTIONS
AND LABOR STAND-
ARDS.— 
(1) RATE
OF
PAY; BENEFITS
AND
WORKING 
CONDITIONS.— 
(A) IN GENERAL.—A worksite employer of 
a participant in a program or activity funded 
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under this section shall pay the participant at 
the rate paid to employees of the worksite em-
ployer who are not participants in such pro-
gram or activity and who perform comparable 
work at the worksite, including periodic in-
creases where appropriate. If no other employ-
ees of the worksite employer perform com-
parable work at the worksite, the worksite em-
ployer shall pay the participant not less than 
the applicable Federal or State minimum wage, 
whichever is higher. 
(B) BENEFITS AND CONDITIONS.—An in-
dividual employed through participation in a 
program or activity funded under this section 
shall be provided with benefits and working 
conditions at the same level and to the same ex-
tent as such benefits and conditions are pro-
vided to other employees of the employer of the 
individual who have worked a similar length of 
time and perform the same work. 
(2) NONDUPLICATION.— 
(A) 
IN
GENERAL.—Funds 
provided 
through a grant made under this paragraph 
shall be used only for a program or activity that 
does not duplicate, and is in addition to, a pro-
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gram or activity otherwise available in the local-
ity of the program or activity funded under this 
section. 
(B) PRIVATE, NONPROFIT ENTITY.—Funds 
provided through a grant made under this sec-
tion shall not be provided to a private nonprofit 
entity to conduct programs or activities that are 
the same as or substantially equivalent to ac-
tivities provided by a State or local government 
agency in the area in which such entity is lo-
cated, unless the requirements of paragraph (3) 
are met. 
(3) NONDISPLACEMENT.— 
(A) IN
GENERAL.—A worksite employer 
shall not displace an employee or position (in-
cluding partial displacement such as reduction 
in hours, wages, or employment benefits) or im-
pair contracts for services or collective bar-
gaining agreements, as a result of the use by 
such employer of a participant in a program or 
activity funded under this section, and no par-
ticipant in the program or activity shall be as-
signed to fill any established unfilled position 
vacancy. 
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(B) JOB
OPPORTUNITIES.—A job oppor-
tunity shall not be created under this paragraph 
that will infringe in any manner on the pro-
motional opportunity of an employed individual. 
(C) LIMITATION ON SERVICES.— 
(i) SUPPLANTATION
OF
HIRING.—A 
participant in any program or activity 
funded under this section shall not perform 
any services or duties, or engage in activi-
ties, that will supplant the hiring of em-
ployees that are not participants in the 
program or activity. 
(ii) DUTIES
FORMERLY
PERFORMED 
BY
ANOTHER
EMPLOYEE.—A participant 
in any program or activity funded under 
this section shall not perform services or 
duties, or engage in activities, that are 
services, duties, or activities that had been 
performed by or were assigned to any em-
ployee who recently resigned or was dis-
charged, who is subject to a reduction in 
force, who has recall rights pursuant to a 
collective bargaining agreement or applica-
ble personnel procedures, who is on leave 
(such as terminal, temporary, vacation, 
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emergency, or sick leave), who is on strike, 
or who is being locked out. 
(D) CONCURRENCE OF LOCAL LABOR OR-
GANIZATION.—No placement shall be made 
under a program or activity funded under this 
section until the entity conducting the program 
or activity has obtained the written concurrence 
of any local labor organization representing em-
ployees who are engaged in the same or sub-
stantially similar work as that proposed to be 
carried out for the worksite employer with 
whom a participant is to be placed under the 
program or activity. 
(4) NO
IMPACT
ON
UNION
ORGANIZING.—A 
State conducting a demonstration project funded 
under this section and any entity conducting a pro-
gram or activity funded under this section shall pro-
vide the Secretary with a certified assurance that 
none of such funds shall be used to assist or deter 
union organizing. 
(5) ACCOUNTABILITY.— 
(A) IN GENERAL.—Funds provided under 
this section shall not be used to subsidize train-
ing or employment with an employer that has 
a demonstrable record of noncompliance with 
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Federal labor, civil rights, workplace safety, or 
related laws. 
(B) CERTIFIED SATISFACTORY RECORD.— 
Employers who receive training or wage sub-
sidies under programs or activities funded 
under this section shall have a satisfactory 
record in labor relations and employment prac-
tices, as certified by the Secretary of Labor. 
(C) APPLICATION
OF
WORKER
PROTEC-
TION LAWS.—A participant in a program or ac-
tivity funded under this section shall be consid-
ered to be an employee of any employer that 
the participant is placed with for all purposes 
under Federal and State law, including laws re-
lating to health and safety, civil rights, and 
worker’s compensation. 
(D) OTHER JOB QUALITY STANDARDS.— 
Employers who receive training or wage sub-
sidies under programs or activities funded 
under this section shall meet all applicable 
State or local job or employer quality standards 
regarding such issues as wages, benefits, ad-
vancement opportunities, and turnover rates es-
tablished for programs funded under the Work-
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force Investment Act of 1998 (29 U.S.C. 2801 
et seq.). 
(6) GRIEVANCE PROCEDURE.—An entity con-
ducting a program or activity funded under this sec-
tion shall establish and maintain a procedure for the 
filing and adjudication of grievances by employees of 
worksite employers who are not participants in the 
program, or such employees’ representatives, or by 
participants in such a program or activity alleging a 
violation of a provision of this subsection that is 
similar to the grievance procedure established by a 
State for purposes of section 407(f)(3) of the Social 
Security Act (42 U.S.C. 607(f)(3)). 
(7) NONPREEMPTION
OF
STATE
LAW.—The 
provisions of this subsection shall not be construed 
to preempt any provision of State law that affords 
greater protections to employees or participants than 
are afforded by this subsection. 
(8) TREATMENT OF AMOUNTS PAID TO PAR-
TICIPANTS.—Amounts paid to a participant in a 
program or activity funded under this section shall 
be— 
(A) considered earned income for purpose 
of determining the participant’s eligibility for 
the child tax credit established under section 24 
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of the Internal Revenue Code of 1986, the 
earned income tax credit established under sec-
tion 32 of such Code, and any other tax benefit 
established under such Code the eligibility for 
which is based on earned income; and 
(B) disregarded for purposes of deter-
mining the participant’s, the participant’s fam-
ily’s, or the participant’s household’s eligibility 
for, or amount of, assistance or benefits pro-
vided under any means-tested program funded 
in whole or in part with Federal funds. 
(e) APPLICATION.— 
(1) REQUIREMENTS FOR ALL APPLICATIONS.— 
(A) IN GENERAL.—A State desiring to re-
ceive a grant to conduct a demonstration 
project under this section shall submit an appli-
cation— 
(i) to the Secretary of Health and 
Human Services, in the case of a grant 
under subsection (a); or 
(ii) to the Secretary of Labor, in the 
case of a grant under subsection (b); 
at such time, in such manner, and containing 
such information or assurances as the Secretary 
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of Health and Human Services or the Secretary 
of Labor, as appropriate, may require. 
(B) COMPLIANCE WITH WORKER PROTEC-
TIONS AND LABOR STANDARDS.—The applica-
tion shall include an assurance that the State 
and any entity conducting a program or activity 
under the project shall comply with the worker 
protections and labor standards established in 
accordance with such protections under sub-
section (d). 
(C) NONDISCRIMINATION.—The applica-
tion shall include an assurance that the State 
and any entity conducting a program or activity 
under the demonstration project shall comply 
with section 188(a)(2) of the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2938(a)(2)) to 
the same extent that such section would apply 
to the entity if the program or activity con-
ducted under the demonstration project was 
considered to be funded or otherwise financially 
assisted under that Act. 
(D) ASSURANCE
GRANT
WILL
SUPPLE-
MENT, NOT SUPPLANT, OTHER STATE FUND-
ING.—The application shall include an assur-
ance from the chief executive officer of the 
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State that funds made available under the 
grant will supplement, and not supplant, other 
funds used by the State to establish or support 
employment placements for low-income parents. 
(2) SPECIFIC
DEMONSTRATION
PROJECT
RE-
QUIREMENTS.— 
(A) COURT-SUPERVISED OR IV–D AGENCY- 
SUPERVISED
EMPLOYMENT
PROGRAMS
FOR 
NONCUSTODIAL PARENTS.—In order to conduct 
a demonstration project described in subsection 
(a), a State shall include in the application sub-
mitted to the Secretary of Health and Human 
Services the following: 
(i) Evidence of an agreement between 
the State and 1 or more counties to estab-
lish an employment program that meets 
the requirements of subsection (a). 
(ii) The number of potential noncusto-
dial parents to be served by the program. 
(iii) The purposes specific to that 
State’s program. 
(iv) The median income of the target 
population. 
(B) PUBLIC-PRIVATE
CAREER
PATHWAYS 
PARTNERSHIPS.—In order to conduct a dem-
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onstration project described in paragraph (2) of 
subsection (b), a State shall include in the ap-
plication submitted to the Secretary of Labor a 
description of— 
(i) the number, characteristics, and 
employment and earnings status of dis-
advantaged individuals in the State or ap-
plicable region where the program is to be 
conducted; 
(ii) which business and industry sec-
tors, or occupational clusters that cut 
across sectors, will be targeted by the ca-
reer pathways partnership, based on over-
all economic benefit to the community, the 
current and future demand for workers, 
the advancement opportunities for workers, 
the wages at each step of the career path-
way, and availability of worker benefits; 
(iii) the interventions that will be put 
in place to address any educational defi-
cits, limited English proficiency, or learn-
ing disabilities of individuals who partici-
pate in the program and to ensure that 
such individuals have the academic, tech-
nical, communications, and other job skills 
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to function in the jobs targeted by the 
partnership; 
(iv) how the members of the partner-
ship will collaborate on the development of 
curriculum and delivery of training that 
will provide the necessary occupational, 
academic and other work-related skills and 
credentialing needed for the specific labor 
market areas; 
(v) the supports that will be used to 
provide counseling, mentoring or other 
support to individuals while in training or 
to assist them in navigating in complicated 
work environments; 
(vi) the set of career exposure activi-
ties that will be put in place to provide 
hands-on experience such as work experi-
ence, on the job training, internships, or 
work-study; 
(vii) the agreements that are in place 
with employers, industry groups, and labor 
organizations, where applicable, to ensure 
access to jobs and advancement opportuni-
ties in the targeted businesses, industry, or 
occupations; 
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workforce education needs, planning the 
curriculum, assisting in training activities, 
providing job opportunities, and coordi-
nating job retention for individuals hired 
after training through the program and 
followup support; and 
(xii) how the partnership will build on 
existing career pathways programs, where 
applicable, to serve the targeted popu-
lation. 
(3) APPLICATIONS BY INDIAN TRIBES OR TRIB-
AL ORGANIZATIONS.—The Secretary of Health and 
Human Services and the Secretary of Labor may ex-
empt an Indian tribe or tribal organization from any 
requirement of this section that the Secretary of 
Health and Human Services or the Secretary of 
Labor determines would be inappropriate to apply to 
the Indian tribe or tribal organization, taking into 
account the resources, needs, and other cir-
cumstances of the Indian tribe or tribal organiza-
tion. 
(f) PRIORITIES AND REQUIREMENTS FOR AWARDING 
GRANTS.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), the Secretary of Health and Human Serv-
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ices (in the case of a grant under subsection (a)) 
and the Secretary of Labor (in the case of a grant 
under subsection (b)) shall give priority to making 
grants under this section to entities that— 
(A) demonstrate success with respect to 
meeting the goals of quality job placement, 
long-term unsubsidized job retention, and, 
where applicable, increasing child support pay-
ments, decreasing unpaid child support arrear-
ages, and increasing the involvement of low-in-
come noncustodial parents with their children 
through their participation in responsible fa-
therhood activities, including participation in 
programs that provide culturally relevant cur-
ricula in core subjects including— 
(i) conducting activities with children; 
(ii) improving communication skills; 
(iii) child support management; 
(iv) providing financially for the fam-
ily’s security and well-being; 
(v) managing stress and anger; 
(vi) maintaining physical and mental 
health; 
(vii) parenting and relationship skills; 
(viii) child development; and 
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(ix) barriers to responsible parent-
hood, including substance abuse, unem-
ployment, criminal justice system involve-
ment, and inadequate housing; and 
(B) coordinate with, and link individuals 
as applicable to, other public and private bene-
fits and employment services for low-income 
adults among the different systems or programs 
in which such adults are involved, including the 
criminal justice system, the State programs 
funded under each part of title IV of the Social 
Security Act (42 U.S.C. 601 et seq.) (including 
programs and activities funded under section 
403(a)(2) of the Social Security Act (42 U.S.C. 
603(a)(2)), educational assistance and student 
aid programs, and job training or employment 
programs, including State employment agencies. 
(2) PERFORMANCE
MEASURES.—In making 
grants under this section, the Secretary of Health 
and Human Services (in the case of a grant under 
subsection (a)) and the Secretary of Labor (in the 
case of a grant under subsection (b)) shall ensure 
that grantees demonstrate a plan for implementing 
measures to track their performance with respect to 
meeting the goals of quality job placement, long- 
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term unsubsidized job retention, and, where applica-
ble, increasing child support payments, decreasing 
child support arrearages, and increasing the involve-
ment of low-income noncustodial parents with their 
children. 
(3) REFLECTIVE OF TARGET POPULATIONS.— 
In making grants under this section, the Secretary 
of Health and Human Services (in the case of a 
grant under subsection (a)) and the Secretary of 
Labor (in the case of a grant under subsection (b)) 
shall give priority to States with proposed dem-
onstration projects that are designed to target low- 
income adults, including custodial and noncustodial 
parents, and low-income married couples. 
(4) SUBSTANTIAL FUNDING FOR EACH OF THE 
PURPOSES.—In making grants under subsection (b), 
the Secretary of Labor shall ensure that a substan-
tial share of the amount appropriated under sub-
section (j) for a fiscal year is used for carrying out 
each of the projects described in paragraphs (1) and 
(2) of subsection (b). 
(g) REGULATORY AND POLICY FLEXIBILITY.—The 
Secretary of Labor and the Secretary of Health and 
Human Services, in coordination with the Secretary of 
Education and the Attorney General, shall work with 
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grantees under this section to resolve policy barriers that 
may impede blending of Federal resources to support 
these demonstration projects. 
(h) EVALUATION.—The Secretary of Health and 
Human Services (in the case of a grant under subsection 
(a)) and the Secretary of Labor (in the case of a grant 
under subsection (b)) shall provide for an independent and 
rigorous evaluation of the demonstration projects con-
ducted under this section that includes, to the maximum 
extent feasible, random assignment or other appropriate 
statistical techniques, in order to assess the effectiveness 
of the projects. 
(i) GENERAL DEFINITIONS.—In this section: 
(1) STATE.—The term ‘‘State’’ means each of 
the 50 States, the District of Columbia, the Com-
monwealth of Puerto Rico, the United States Virgin 
Islands, Guam, American Samoa, and includes an 
Indian tribe or tribal organization. 
(2) IV–D AGENCY.—The term ‘‘IV–D agency’’ 
means the State or local agency responsible for ad-
ministering the State program established under 
part D of title IV of the Social Security Act (42 
U.S.C. 651 et seq.). 
(3) INDIAN
TRIBE; TRIBAL
ORGANIZATION.— 
The terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ 
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have the meaning given such terms in section 4 of 
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450b). 
(j) APPROPRIATION.—Out of any money in the 
Treasury of the United States not otherwise appropriated, 
there are appropriated to carry out this section— 
(1) for programs administered by the Secretary 
of Health and Human Services under subsection (a), 
$15,000,000 for each of fiscal years 2011 through 
2015; and 
(2) for programs administered by the Secretary 
of Labor under subsection (b), $35,000,000 for each 
of fiscal years 2011 through 2015. 
SEC. 103. HEALTHY MARRIAGE PROMOTION AND RESPON-
SIBLE FATHERHOOD PROGRAMS. 
(a) ENSURING FUNDING
FOR RESPONSIBLE FA-
THERHOOD PROGRAMS.—Section 403(a)(2)(C) of the So-
cial Security Act (42 U.S.C. 603(a)(2)(C)) is amended— 
(1) in the subparagraph heading, by striking 
‘‘LIMITATION ON USE OF’’ and inserting ‘‘REQUIRE-
MENT TO USE CERTAIN’’; and 
(2) in clause (i), by striking ‘‘may not award 
more than $50,000,000’’ and inserting ‘‘shall award 
at least 1⁄2 of the amounts’’. 
(b) VOLUNTARY PARTICIPATION.— 
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(1) ASSURANCE.—Section 403(a)(2)(A)(ii)(II) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
603(a)(2)(A)(ii)(II)) is amended— 
(A) in item (aa), by striking ‘‘and’’ at the 
end; 
(B) in item (bb), by striking the period at 
the end and inserting a semicolon; and 
(C) by adding at the end the following new 
items: 
‘‘(cc) if the entity is a State 
or an Indian tribe or tribal orga-
nization, to not condition the re-
ceipt of assistance under the pro-
gram funded under this part, 
under a program funded with 
qualified State expenditures (as 
defined 
in 
section 
409(a)(7)(B)(i)), or under any 
other program funded under this 
title on enrollment in any such 
programs or activities; and 
‘‘(dd) to permit any indi-
vidual who has begun to partici-
pate in a particular program or 
activity funded under this para-
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graph, including an individual 
whose participation is specified in 
the individual responsibility plan 
developed for the individual in 
accordance with section 408(b), 
to transfer to another such pro-
gram or activity funded under 
this paragraph upon notification 
to the entity and the State agen-
cy responsible for administering 
the State program funded under 
this part.’’. 
(2) PROHIBITION.—Section 408(a) of such Act 
(42 U.S.C. 608(a)) is amended by adding at the end 
the following: 
‘‘(12) BAN
ON
CONDITIONING
RECEIPT
OF 
TANF OR CERTAIN OTHER BENEFITS ON PARTICIPA-
TION IN A HEALTHY MARRIAGE OR RESPONSIBLE 
FATHERHOOD PROGRAM.—A State to which a grant 
is made under section 403 shall not condition the re-
ceipt of assistance under the State program funded 
under this part, under a program funded with quali-
fied State expenditures (as defined in section 
409(a)(7)(B)(i)), or under any other program fund-
ed under this title, on participation in a healthy 
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marriage promotion activity (as defined in section 
403(a)(2)(A)(iii)) or in an activity promoting re-
sponsible 
fatherhood 
(as 
defined 
in 
section 
403(a)(2)(C)(ii)).’’. 
(3) PENALTY.—Section 409(a) of such Act (42 
U.S.C. 609(a)) is amended by adding at the end the 
following: 
‘‘(16) PENALTY
FOR
CONDITIONING
RECEIPT 
OF TANF OR CERTAIN OTHER BENEFITS ON PARTICI-
PATION IN A HEALTHY MARRIAGE OR RESPONSIBLE 
FATHERHOOD
PROGRAM.—If the Secretary deter-
mines that a State has violated section 408(a)(12) 
during a fiscal year, the Secretary shall reduce the 
grant payable to the State under section 403(a)(1) 
for the immediately succeeding fiscal year by an 
amount equal to 5 percent of the State family assist-
ance grant.’’. 
(c) ACTIVITIES PROMOTING RESPONSIBLE FATHER-
HOOD.—Section 403(a)(2)(C)(ii) of the Social Security 
Act (42 U.S.C. 603(a)(2)(C)(ii)) is amended— 
(1) in subclause (I), by striking ‘‘marriage or 
sustain marriage’’ and insert ‘‘healthy relationships 
and marriages or to sustain healthy relationships or 
marriages’’; 
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(2) in subclause (II), by inserting ‘‘educating 
youth who are not yet parents about the economic, 
social, and family consequences of early parenting, 
helping participants in fatherhood programs work 
with their own children to break the cycle of early 
parenthood,’’ after ‘‘child support payments,’’; and 
(3) in subclause (III), by striking ‘‘fathers’’ and 
inserting ‘‘low-income fathers and other low-income 
noncustodial parents who are not eligible for assist-
ance under the State program funded under this 
part’’. 
(d) REAUTHORIZATION.—Section 403(a)(2)(D) of 
such Act (42 U.S.C. 603(a)(2)(D)) is amended by striking 
‘‘year 2011’’ each place it appears and inserting ‘‘years 
2011 through 2015’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2010. 
SEC. 104. ELIMINATION OF SEPARATE TANF WORK PAR-
TICIPATION RATE FOR 2-PARENT FAMILIES. 
(a) IN GENERAL.—Section 407 of the Social Security 
Act (42 U.S.C. 607) is amended— 
(1) in subsection (a)— 
(A) beginning in the heading, by striking 
‘‘PARTICIPATION RATE REQUIREMENTS’’ and 
all that follows through ‘‘A State’’ in paragraph 
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