and 10(a) of this Act, is amended by adding at the end 
the following: 
‘‘(18) BAN ON USING FEDERAL TANF FUNDS 
TO REPLACE STATE OR LOCAL SPENDING THAT IS 
NOT A QUALIFIED STATE EXPENDITURE.—A State 
to which a grant is made under section 403, and a 
sub-State entity that receives funds from such a 
grant, shall not expend any part of the grant funds 
to supplant State or local spending for benefits or 
services which are not qualified State expenditures 
(within the meaning of section 409(a)(7)(B)(i)).’’. 
(b) PENALTY.—Section 409(a) (42 U.S.C. 609), as 
amended by sections 5(c)(2)(A), 7(d)(1), 8(b)(2), 9(b)(2), 
and 10(b) of this Act, is amended by adding at the end 
the following: 
‘‘(21) USE OF FEDERAL TANF FUNDS TO RE-
PLACE STATE OR LOCAL SPENDING THAT IS NOT A 
QUALIFIED STATE EXPENDITURE.—If the Secretary 
determines that a State to which a grant is made 
under section 403 in a fiscal year has violated sec-
tion 408(a)(18) during the fiscal year, the Secretary 
shall reduce the grant payable to the State under 
section 403(a)(1) for the immediately succeeding fis-
cal year by an amount equal to 5 percent of the 
State family assistance grant.’’. 
VerDate Mar 15 2010 
22:59 Dec 07, 2011
Jkt 019200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H3573.IH
H3573
jbell on DSK7SPTVN1PROD with BILLS
SEC. 12. TANF ASSISTANCE TO MEET BASIC FAMILY ECO-
NOMIC NEEDS. 
(a) 
STATE
PLAN
REQUIREMENT.—Section 
402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as amended by 
sections 8(c) and 9(d) of this Act, is amended by adding 
at the end the following: 
‘‘(viii) 
FAMILY
BUDGET
PROVI-
SIONS.—The document shall set forth a 
family budget of a dollar amount sufficient 
to meet the basic economic needs (includ-
ing food, clothing, shelter, utilities, house-
hold goods, personal care items, and gen-
eral incidental expenses) of a family, how 
the family budget is adjusted for family 
size, the method used to estimate the fam-
ily budget (including a statement of the re-
lationship between shelter and utility costs 
and the fair market rents in localities in 
the State), and the relationship between 
the amount of assistance provided to each 
family under the program and the amount 
of the family budget for the family.’’. 
(b) PROGRAM REQUIREMENT.—Section 408(a) (42 
U.S.C. 608(a)), as amended by sections 7(d)(1), 8(b)(1), 
9(b)(1), 10(a), and 11(a) of this Act, is amended by add-
ing at the end the following: 
VerDate Mar 15 2010 
22:59 Dec 07, 2011
Jkt 019200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H3573.IH
H3573
jbell on DSK7SPTVN1PROD with BILLS
‘‘(19) REQUIREMENT THAT AMOUNT OF ASSIST-
ANCE MEET BASIC ECONOMIC NEEDS.—A State to 
which a grant is made under section 403 shall en-
sure that the total amount of assistance provided to 
a family under the State program funded under this 
part and all programs funded with qualified State 
expenditures (as defined in section 409(a)(7)(B)(i)) 
for which the family is eligible is sufficient to meet 
the basic economic needs of the family, taking into 
account all earned and unearned income of the fam-
ily and an amount not to exceed the value of the 
supplemental nutrition assistance benefits provided 
to the family under the Food and Nutrition Act of 
2008.’’. 
(c) PENALTY.—Section 409(a) (42 U.S.C. 609), as 
amended by sections 5(c)(2)(A), 7(d)(1), 8(b)(2), 9(b)(2), 
10(b), and 11(b) of this Act, is amended by adding at the 
end the following: 
‘‘(22) PENALTY FOR FAILURE OF STATE TANF 
ASSISTANCE TO MEET BASIC ECONOMIC NEEDS OF A 
RECIPIENT
FAMILY.—If the Secretary determines 
that a State to which a grant is made under section 
403 in a fiscal year has violated section 408(a)(19) 
during the fiscal year, the Secretary shall reduce the 
grant payable to the State under section 403(a)(1) 
VerDate Mar 15 2010 
22:59 Dec 07, 2011
Jkt 019200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H3573.IH
H3573
jbell on DSK7SPTVN1PROD with BILLS
for the immediately succeeding fiscal year by an 
amount equal to 5 percent of the State family assist-
ance grant.’’. 
SEC. 13. STATE PLANS AND REPORTS ON CHILD POVERTY. 
(a) CHILD POVERTY REDUCTION AS A PURPOSE OF 
THE TANF PROGRAM.—Section 401(a)(1) (42 U.S.C. 
601(a)(1)) is amended by redesignating paragraphs (1) 
through (4) as paragraphs (2) through (5), respectively, 
and by inserting before paragraph (2) (as so redesignated) 
the following: 
‘‘(1) reduce poverty among children;’’. 
(b) STATE PLAN PROVISIONS.— 
(1) MATTERS REQUIRED TO BE ADDRESSED.— 
Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is 
amended by adding at the end the following: 
‘‘(vii) GOALS AND METHODS FOR RE-
DUCING
CHILD
POVERTY.—Reduce child 
poverty using Federal funds provided 
under this part and State funds, including 
establishing numerical goals for reducing 
child poverty. 
‘‘(viii) GOALS
AND
TRACKING
OF 
WORK
OUTCOMES.—Track 
work-related 
outcomes for recipients of assistance under 
the program, such as employment entries, 
VerDate Mar 15 2010 
22:59 Dec 07, 2011
Jkt 019200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H3573.IH
H3573
jbell on DSK7SPTVN1PROD with BILLS