I 
117TH CONGRESS 
1ST SESSION H. R. 4509 
To amend part A of title IV of the Social Security Act, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 19, 2021 
Mr. BRADY (for himself, Mrs. WALORSKI, Mr. RICE of South Carolina, Mr. 
WENSTRUP, Mr. ESTES, Mr. SMITH of Missouri, Mr. LAHOOD, Mr. 
SCHWEIKERT, Mr. SMUCKER, Mr. KELLY
of Pennsylvania, Mr. 
ARRINGTON, Mrs. MILLER of West Virginia, Mr. SMITH of Nebraska, Mr. 
NUNES, Mr. FERGUSON, Mr. BUCHANAN, Mr. HERN, and Mr. REED) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend part A of title IV of the Social Security Act, 
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 ‘‘Jobs and Opportunity 
with Benefits and Services for Success Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents of this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
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Sec. 3. References. 
Sec. 4. Re-naming of program. 
Sec. 5. Helping more Americans enter and remain in the workforce. 
Sec. 6. Expecting universal engagement and case management. 
Sec. 7. Promoting accountability by measuring work outcomes. 
Sec. 8. Targeting funds to truly needy families. 
Sec. 9. Targeting funds to core purposes. 
Sec. 10. Strengthening program integrity by measuring improper payments. 
Sec. 11. Prohibition on State diversion of Federal funds to replace State spend-
ing. 
Sec. 12. Inclusion of poverty reduction as a program purpose. 
Sec. 13. Welfare for needs not weed. 
Sec. 14. Strengthening accountability through HHS approval of State plans. 
Sec. 15. Aligning and improving data reporting. 
Sec. 16. Technical corrections to data exchange standards to improve program 
coordination. 
Sec. 17. Set-aside for economic downturns. 
Sec. 18. Definitions related to use of funds. 
Sec. 19. Elimination of obsolete provisions. 
Sec. 20. 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 reference shall be considered to be made to a 
section or other provision of the Social Security Act. 
SEC. 4. RE-NAMING OF PROGRAM. 
(a) IN GENERAL.—The heading for part A of title 
IV is amended to read as follows: 
‘‘PART A—JOBS AND OPPORTUNITY WITH 
BENEFITS AND SERVICES PROGRAM’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The heading for section 403(a)(2)(B) (42 
U.S.C. 603(a)(2)(B)) is amended by striking 
‘‘TANF’’ and inserting ‘‘JOBS’’. 
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(2) The heading for section 413 (42 U.S.C. 
613) is amended by striking ‘‘TEMPORARY
AS-
SISTANCE FOR NEEDY FAMILIES’’ and inserting 
‘‘JOBS AND OPPORTUNITY WITH BENEFITS AND 
SERVICES’’. 
(3) The heading for section 413(a) (42 U.S.C. 
613(a)) is amended by striking ‘‘TANF’’ and insert-
ing ‘‘JOBS’’. 
(4) The heading for section 471(e)(7)(B)(i) (42 
U.S.C. 671(e)(7)(B)(i)), as in effect pursuant to the 
amendment made by section 50711(a)(2) of division 
E of the Bipartisan Budget Act of 2018 (Public 
Law 115–123), is amended by striking ‘‘TANF’’ 
and inserting ‘‘JOBS’’. 
SEC. 5. HELPING MORE AMERICANS ENTER AND REMAIN IN 
THE WORKFORCE. 
(a) 
FAMILY
ASSISTANCE
GRANTS.—Section 
403(a)(1) (42 U.S.C. 603(a)(1)) is amended in each of 
subparagraphs (A) and (C) by striking ‘‘2017 and 2018’’ 
and inserting ‘‘2022 through 2027’’. 
(b) HEALTHY MARRIAGE PROMOTION AND RESPON-
SIBLE FATHERHOOD GRANTS.—Section 403(a)(2)(D) (42 
U.S.C. 603(a)(2)(D)) is amended— 
(1) by striking ‘‘2017 and 2018’’ and inserting 
‘‘2022 through 2027’’; and 
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(2) by striking ‘‘for fiscal year 2017 or 2018’’. 
(c) TRIBAL GRANTS.—Section 412(a) (42 U.S.C. 
612(a)) is amended in each of paragraphs (1)(A) and 
(2)(A) by striking ‘‘2017 and 2018’’ and inserting ‘‘2022 
through 2027’’. 
(d) IMPROVING ACCESS TO CHILD CARE TO SUP-
PORT WORK.—Section 418(a)(3) (42 U.S.C. 618(a)(3)) is 
amended— 
(1) by striking ‘‘$3,550,000,000 for each fiscal 
year’’ and inserting ‘‘$4,158,000,000 for each of fis-
cal years 2022 through 2027’’; and 
(2) 
in 
subparagraph 
(A), 
by 
striking 
‘‘$3,375,000,000’’ and inserting ‘‘$3,983,000,000’’. 
(e) 
GRANTS
TO
THE
TERRITORIES.—Section 
1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by striking 
‘‘2017 and 2018’’ and inserting ‘‘2022 through 2027’’. 
SEC. 6. EXPECTING UNIVERSAL ENGAGEMENT AND CASE 
MANAGEMENT. 
Section 408(b) (42 U.S.C. 608(b)) is amended to 
read as follows: 
‘‘(b) INDIVIDUAL OPPORTUNITY PLANS.— 
‘‘(1) ASSESSMENT.—The State agency respon-
sible for administering the State program funded 
under this part shall make an initial assessment of 
the following for each work-eligible individual (as de-
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fined in the regulations promulgated pursuant to 
section 407(i)(1)(A)(i)): 
‘‘(A) The education obtained, skills, prior 
work experience, work readiness, and barriers 
to work of the individual. 
‘‘(B) The well-being of the children in the 
family of the individual and, where appropriate, 
activities or services (such as services offered by 
a program funded under section 511) to im-
prove the well-being of the children. 
‘‘(2) CONTENTS OF PLANS.—On the basis of 
the assessment required by paragraph (1) of this 
subsection, the State agency, in consultation with 
the individual, shall develop an individual oppor-
tunity plan that— 
‘‘(A) includes a personal responsibility 
agreement in which the individual acknowledges 
receipt of publicly funded benefits and responsi-
bility to comply with program requirements in 
order to receive the benefits; 
‘‘(B) sets forth the obligations of the indi-
vidual to participate in work activities (as de-
fined in section 407(d)), and the number of 
hours per month for which the individual will so 
participate pursuant to section 407; 
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‘‘(C) sets forth an employment goal and 
planned short-, intermediate-, and long-term ac-
tions to achieve the goal, and, in the case of an 
individual who has not attained 24 years of age 
and is in secondary school or the equivalent, the 
intermediate action may be completion of sec-
ondary school or the equivalent; 
‘‘(D) describes the job counseling and 
other services the State will provide to the indi-
vidual to enable the individual to obtain and 
keep unsubsidized employment; 
‘‘(E) may include referral to appropriate 
substance abuse or mental health treatment; 
and 
‘‘(F) is signed by the individual. 
‘‘(3) TIMING.—The State agency shall comply 
with paragraphs (1) and (2) with respect to a work- 
eligible individual— 
‘‘(A) within 1 year after the effective date 
of this subsection, in the case of an individual 
who, as of such effective date, is a recipient of 
assistance under the State program funded 
under this part (as in effect immediately before 
such effective date); or 
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‘‘(B) within 60 days after the individual is 
determined to be eligible for the assistance, in 
the case of any other individual. 
‘‘(4) UNIVERSAL ENGAGEMENT.—Subject to the 
exceptions in paragraph (3), each State shall require 
all work-eligible recipients receiving funds under the 
State program funded under this part to engage in 
work in accordance with the provisions of section 
407(c), 407(d), and 407(e). 
‘‘(5) PENALTY FOR NONCOMPLIANCE BY INDI-
VIDUAL.—In addition to any other penalties required 
under the State program funded under this part, the 
State shall reduce, by such amount as the State con-
siders appropriate, the amount of assistance other-
wise payable under the State program to a family 
that includes an individual who fails without good 
cause to comply with an individual opportunity plan 
developed pursuant to this subsection, that is signed 
by the individual. 
‘‘(6) PERIODIC REVIEW.—The State shall meet 
with each work-eligible individual assessed by the 
State under paragraph (1), not less frequently than 
every 90 days, to— 
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‘‘(A) review the individual opportunity plan 
developed for the individual, including the eligi-
bility of the individual for benefits; 
‘‘(B) discuss with the individual the 
progress made by the individual in achieving 
the goals specified in the plan; and 
‘‘(C) update the plan, as necessary, to re-
flect any changes in the circumstances of the 
individual since the plan was last reviewed.’’. 
SEC. 7. PROMOTING ACCOUNTABILITY BY MEASURING 
WORK OUTCOMES. 
(a) IN
GENERAL.—Section 407(a) (42 U.S.C. 
607(a)) is amended to read as follows: 
‘‘(a) PERFORMANCE ACCOUNTABILITY
AND WORK 
OUTCOMES.— 
‘‘(1) WORK OUTCOMES.— 
‘‘(A) IN GENERAL.—A State to which a 
grant is made under section 403 shall achieve 
the requisite minimum level of performance for 
a fiscal year described in this paragraph with 
respect to the percentage of employment exits 
for families receiving assistance under the State 
program funded under this part, or be subject 
to penalty as described in section 409(a)(3). 
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‘‘(B) CALCULATION
OF
PERCENTAGE
OF 
EMPLOYMENT
EXITS.—For purposes of this 
paragraph, the percentage of employment exits 
with respect to a State equals the ratio of the 
number of work-eligible individuals who are in 
unsubsidized employment 6 months after their 
exit to the average monthly number of families 
receiving assistance under the State program 
funded under this part. 
‘‘(C) AGREEMENT
ON
REQUISITE
LEVEL 
OF
PERFORMANCE.—The Secretary and the 
State shall negotiate the requisite level of per-
formance for the State with respect to employ-
ment exits for each fiscal year beginning with 
fiscal year 2024. 
‘‘(2) PERFORMANCE ACCOUNTABILITY.— 
‘‘(A) PURPOSE.—The purpose of this para-
graph is to provide for the establishment of per-
formance accountability measures to assess the 
effectiveness of States in increasing employ-
ment, retention, and advancement among fami-
lies receiving assistance under the State pro-
gram funded under this part. 
‘‘(B) IN GENERAL.—A State to which a 
grant is made under section 403 for a fiscal 
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year shall achieve the requisite level of perform-
ance on an indicator described in subparagraph 
(D) of this paragraph for the fiscal year. 
‘‘(C) MEASURING STATE PERFORMANCE.— 
Each State, in consultation with the Secretary, 
shall collect and submit to the Secretary the in-
formation necessary to measure the level of per-
formance of the State for each indicator de-
scribed in subparagraph (D), for fiscal year 
2023 and each fiscal year thereafter, and the 
Secretary shall use the information collected for 
fiscal year 2023 to establish the baseline level 
of performance for each State for each such in-
dicator. 
‘‘(D) INDICATORS
OF
PERFORMANCE.— 
The indicators described in this subparagraph, 
for a fiscal year, are the following: 
‘‘(i) The percentage of individuals who 
were work-eligible individuals as of the 
time of exit from the program, who are in 
unsubsidized employment during the 2nd 
quarter after the exit. 
‘‘(ii) The percentage of individuals 
who were work-eligible individuals who 
were in unsubsidized employment in the 
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2nd quarter after the exit, who are also in 
unsubsidized employment during the 4th 
quarter after the exit. 
‘‘(iii) The median earnings of individ-
uals who were work-eligible individuals as 
of the time of exit from the program, who 
are in unsubsidized employment during the 
2nd quarter after the exit. 
‘‘(iv) The percentage of individuals 
who have not attained 24 years of age, are 
attending high school or enrolled in an 
equivalency program, and are work-eligible 
individuals or were work-eligible individ-
uals as of the time of exit from the pro-
gram, who obtain a high school degree or 
its recognized equivalent while receiving as-
sistance under the State program funded 
under this part or within 1 year after the 
exit. 
‘‘(E) LEVELS OF PERFORMANCE.— 
‘‘(i) IN
GENERAL.—For each State 
submitting a State plan pursuant to sec-
tion 402(a), there shall be established, in 
accordance with this subparagraph, levels 
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of performance for each of the indicators 
described in subparagraph (D). 
‘‘(ii) WEIGHT.—The weight assigned 
to such an indicator shall be the following: 
‘‘(I) Forty percent, in the case of 
the indicator described in subpara-
graph (D)(i). 
‘‘(II) Twenty-five percent, in the 
case of the indicator described in sub-
paragraph (D)(ii). 
‘‘(III) Twenty-five percent, in the 
case of the indicator described in sub-
paragraph (D)(iii). 
‘‘(IV) Ten percent, in the case of 
the indicator described in subpara-
graph (D)(iv). 
‘‘(iii) AGREEMENT
ON
REQUISITE 
PERFORMANCE
LEVEL
FOR
EACH
INDI-
CATOR.— 
‘‘(I) IN
GENERAL.—The Sec-
retary and the State shall negotiate 
the requisite level of performance for 
the State with respect to each indi-
cator described in clause (ii), for each 
fiscal year beginning with fiscal year 
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2024, and shall do so before the be-
ginning of the fiscal year involved. 
‘‘(II) REQUIREMENTS IN ESTAB-
LISHING PERFORMANCE LEVELS.—In 
establishing the requisite levels of per-
formance, the State and the Secretary 
shall— 
‘‘(aa) take into account how 
the levels involved compare with 
the levels established for other 
States; and 
‘‘(bb) ensure the levels in-
volved are adjusted, using the ob-
jective statistical model referred 
to in clause (v), based on— 
‘‘(AA) the differences 
among States in economic 
conditions, 
including 
dif-
ferences in unemployment 
rates or employment losses 
or gains in particular indus-
tries; 
‘‘(BB) the characteris-
tics of participants on entry 
into the program, including 
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indicators of prior work his-
tory, lack of educational or 
occupational skills attain-
ment, or other factors that 
may affect employment and 
earnings; and 
‘‘(CC) take into account 
the extent to which the lev-
els involved promote contin-
uous improvement in per-
formance by each State. 
‘‘(iv) REVISIONS BASED ON ECONOMIC 
CONDITIONS AND INDIVIDUALS RECEIVING 
ASSISTANCE DURING THE FISCAL YEAR.— 
The Secretary shall, in accordance with the 
objective statistical model referred to in 
clause (v), revise the requisite levels of per-
formance for a State and a fiscal year to 
reflect the economic conditions and charac-
teristics of the relevant individuals in the 
State during the fiscal year. 
‘‘(v) 
STATISTICAL
ADJUSTMENT 
MODEL.—The Secretary shall use an objec-
tive statistical model to make adjustments 
to the requisite levels of performance for 
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the economic conditions and characteristics 
of the relevant individuals, and shall con-
sult with the Secretary of Labor to develop 
a model that is the same as or similar to 
the 
model 
described 
in 
section 
116(b)(3)(A)(viii) of the Workforce Inno-
vation and Opportunity Act (29 U.S.C. 
3141(b)(3)(A)(viii)). 
‘‘(vi) DEFINITION OF EXIT.—In this 
paragraph, the term ‘exit’ means, with re-
spect to a State program funded under 
this part, ceases to a receive a JOBS ben-
efit under the program. 
‘‘(F) STATE OPTION TO ESTABLISH COM-
MON
EXIT
MEASURES.—Notwithstanding sub-
paragraph (E)(vi) of this paragraph, a State 
that has not provided the notification under 
section 121(b)(1)(C)(ii) of the Workforce Inno-
vation and Opportunity Act to exclude the State 
program funded under this part as a mandatory 
one-stop partner may adopt an alternative defi-
nition of ‘exit’ for the purpose of creating com-
mon exit measures to improve alignment with 
workforce programs operated under title I of 
such Act. 
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‘‘(G) REGULATIONS.—In order to ensure 
nationwide comparability of data, the Secretary, 
after consultation with the Secretary of Labor 
and with States, shall issue regulations gov-
erning the establishment of the performance ac-
countability system under this paragraph and a 
template for performance reports to be used by 
all States consistent with subsection (b).’’. 
(b) REPORTS ON STATE PERFORMANCE ON HHS 
ONLINE
DASHBOARD.—Section 
407(b) 
(42 
U.S.C. 
607(b)) is amended to read as follows: 
‘‘(b) PUBLICATION OF STATE PERFORMANCE.—The 
Secretary shall, directly or through the use of grants or 
contracts, establish and operate an Internet website that 
is accessible to the public, with a dashboard that is regu-
larly updated and provides easy-to-understand information 
on the performance of each State program funded under 
this part, including a profile for each such program, ex-
pressed by use of a template, which shall include— 
‘‘(1) information on the indicators and requisite 
performance levels established for the State under 
subsection (a), including, with respect to each such 
level, whether the State achieves, exceeds, or fails to 
achieve the level on an ongoing basis, including— 
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‘‘(A) information on any adjustments made 
to the requisite levels using the statistical ad-
justment 
model 
described 
in 
subsection 
(a)(3)(D)(v); and 
‘‘(B) a grade based on the overall perform-
ance of the State, as determined by the Sec-
retary and in consultation with the State, and 
the overall performance shall be graded based 
on the performance indicators and weights for 
each such indicator as described in subsection 
(a); 
‘‘(2) information reported under section 411 on 
the characteristics and demographics of individuals 
receiving assistance under the State program, in-
cluding— 
‘‘(A) the number and percentage of child- 
only cases and reason why the cases are child- 
only; and 
‘‘(B) the average weekly number of hours 
that each work-eligible individual in the State 
program participates in work activities, includ-
ing a separate section showing the number and 
percentage of the work-eligible individuals with 
zero hours of the participation and the reason 
for non-participation; 
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‘‘(3) information on the results of improper 
payments reviews; 
‘‘(4) a link to the State plan approved under 
section 402; and 
‘‘(5) information regarding any penalty im-
posed, or other corrective action taken, by the Sec-
retary against a State for failing to achieve a req-
uisite performance level or any other requirement 
imposed by or under this part.’’. 
(c) MODIFICATION
OF RULES
FOR DETERMINING 
WHETHER AN INDIVIDUAL IS ENGAGED IN WORK.—Sec-
tion 407(c) (42 U.S.C. 607(c)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘For purposes of sub-
section (b)(1)(B)(i), a’’ and inserting ‘‘A’’; 
and 
(ii) by striking ‘‘, not fewer than’’ and 
all that follows through ‘‘this subsection’’; 
and 
(B) in subparagraph (B)— 
(i) in the matter preceding clause (i), 
by striking ‘‘For purposes of subsection 
(b)(2)(B), an’’ and inserting ‘‘An’’; 
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(ii) in clause (i), by striking ‘‘, not 
fewer than’’ and all that follows through 
‘‘this subsection’’; and 
(iii) in clause (ii), by striking ‘‘, not 
fewer than’’ and all that follows through 
‘‘subsection (d)’’; and 
(2) in paragraph (2)— 
(A) by striking subparagraphs (A) and 
(D); 
(B) in each of subparagraphs (B) and (C), 
by striking ‘‘For purposes of determining 
monthly participation rates under subsection 
(b)(1)(B)(i), a’’ and inserting ‘‘A’’; 
(C) by redesignating subparagraphs (B) 
and (C) as subparagraphs (A) and (B), respec-
tively; and 
(D) by adding at the end the following: 
‘‘(C) STATE OPTION FOR PARTICIPATION 
REQUIREMENT
EXEMPTIONS.—For any fiscal 
year, a State may, at its option, not require an 
individual who is a single custodial parent car-
ing for a child who has not attained 12 months 
of age to engage in work, for not more than 12 
months.’’. 
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(d) MODIFICATIONS TO ALLOWABLE WORK ACTIVI-
TIES.—Section 407(d) (42 U.S.C. 607(d)) is amended— 
(1) in paragraph (5), by inserting ‘‘, including 
apprenticeship’’ before the semicolon; 
(2) in paragraph (6), by inserting ‘‘supervised’’ 
before ‘‘job search’’; 
(3) in paragraph (8), by striking ‘‘(not to ex-
ceed 12 months with respect to any individual)’’ and 
inserting ‘‘, including career technical education’’; 
(4) in paragraph (11), by striking ‘‘and’’ at the 
end; 
(5) in paragraph (12), by striking the period 
and inserting ‘‘; and’’; and 
(6) by adding at the end the following: 
‘‘(13) participation in an in-home program 
teaching parenting skills that complies with the re-
quirements of section 407(c).’’. 
(e) PENALTY AGAINST STATES.— 
(1) 
IN
GENERAL.—Section 
409(a)(3) 
(42 
U.S.C. 609(a)(3)) is amended by striking all that 
precedes subparagraph (B) and inserting the fol-
lowing: 
‘‘(3) FAILURE
TO
SATISFY
WORK
OUTCOMES 
AND WORK ENGAGEMENT.— 
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‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State to which a grant is made 
under section 403 for a fiscal year has failed to 
comply with any of section 407(a)(1), section 
408(b)(3), or section 408(b)(4) for the fiscal 
year, the Secretary shall reduce the grant pay-
able to the State under section 403(a)(1) for 
the immediately succeeding fiscal year by an 
amount equal to the applicable percentage of 
the State family assistance grant.’’. 
(2) TRANSITION
RULE.—The Secretary of 
Health and Human Services may not impose a pen-
alty under section 409(a)(3) of the Social Security 
Act by reason of the failure of a State to comply 
with section 407(a) of such Act for any fiscal year 
before fiscal year 2023. 
(f) PRO RATA REDUCTION OF ASSISTANCE FOR INDI-
VIDUAL NONCOMPLIANCE.—Section 407(e) (42 U.S.C. 
607(e)) is amended by adding at the end the following: 
‘‘(3) PRO RATA REDUCTION.—For purposes of 
paragraph (1)(A), the amount of a pro rata reduc-
tion in assistance shall be determined by multiplying 
the total amount of monthly assistance that would, 
in the absence of the application of this paragraph, 
be paid to the entire family, by the ratio of— 
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‘‘(A) the number of hours of required work 
activities as designated in subsection (d) actu-
ally performed by the individual during the 
month; to 
‘‘(B) the number of hours of work activi-
ties that the individual was required to perform 
during the month in accordance with subsection 
(c). 
‘‘(4) PENALTIES AND ENGAGEMENT.— 
‘‘(A) IN GENERAL.—Subject to the limita-
tion in (B), if in a given month an individual 
who received assistance under this part was re-
quired to engage in work under section 
408(b)(4), failed to fulfill those obligations and 
was subsequently sanctioned in accordance with 
section 407(e)(2) and (3), that individual shall 
judged to be engaged in work for that month 
for purposes of section 408(b)(4). 
‘‘(B) LIMITATION.—If an individual re-
ceives no benefits for two consecutive months 
due to sanctioning under section 407(e)(2) and 
(3), that individual shall not be counted as en-
gaged in work in subsequent months for pur-
poses of section 408(b)(4) unless actual work in 
accordance with section 407(d) was resumed.’’. 
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(g) CONFORMING AMENDMENT.—The heading of sec-
tion 412(c) (42 U.S.C. 612(c)) is amended by striking 
‘‘MINIMUM WORK PARTICIPATION REQUIREMENTS’’ and 
inserting ‘‘REQUIREMENTS FOR WORK OUTCOME MEAS-
URES’’. 
SEC. 8. TARGETING FUNDS TO TRULY NEEDY FAMILIES. 
(a) PROHIBITION ON USE OF FUNDS FOR FAMILIES 
WITH INCOME GREATER THAN TWICE THE POVERTY 
LINE.—Section 404(k) (42 U.S.C. 604(k)) is amended to 
read as follows: 
‘‘(k) PROHIBITIONS.— 
‘‘(1) USE OF FUNDS FOR PERSONS WITH IN-
COME GREATER THAN TWICE THE POVERTY LINE.— 
A State to which a grant is made under this part 
shall not use the grant to provide any assistance or 
services to a family whose monthly income exceeds 
twice the poverty line (as defined by the Office of 
Management and Budget, and revised annually in 
accordance with section 673(2) of the Omnibus 
Budget Reconciliation Act of 1981 (42 U.S.C. 
9902(2))).’’. 
(b) ELIMINATION OF LIMITATION ON USE OF FUNDS 
FOR CASE MANAGEMENT ACTIVITIES.—Section 404(b)(2) 
(42 U.S.C. 604(b)(2)) is amended to read as follows: 
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‘‘(2) EXCEPTIONS.—Paragraph (1) of this sub-
section shall not apply to the use of a grant for— 
‘‘(A) information technology and comput-
erization needed for tracking, monitoring, or 
data collection required by or under this part; 
or 
‘‘(B) case management activities to carry 
out section 408(b).’’. 
(c) PROHIBITION ON USE OF FUNDS FOR DIRECT 
SPENDING ON CHILD CARE SERVICES OR ACTIVITIES.— 
Section 404(k) (42 U.S.C. 604(k)), as amended by sub-
section (a) of this section, is amended by adding at the 
end the following: 
‘‘(2) DIRECT SPENDING ON CHILD CARE SERV-
ICES OR ACTIVITIES.—A State to which a grant is 
made under this part shall not use the grant for di-
rect spending on child care and other early childhood 
education programs, services, or activities.’’. 
(d) LIMITATION ON USE OF FUNDS FOR CHILD WEL-
FARE SERVICES
OR ACTIVITIES.—Section 404(k) (42 
U.S.C. 604(k)), as amended by subsections (a) and (c) 
of this section, is amended— 
(1) in the subsection heading, by inserting ‘‘; 
LIMITATION’’ after ‘‘PROHIBITIONS’’; and 
(2) by adding at the end the following: 
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‘‘(3) LIMITATION ON USE OF FUNDS FOR CHILD 
WELFARE SERVICES OR ACTIVITIES.—A State may 
use not more than 10 percent of a grant made to 
the State under section 403(a)(1) for child welfare 
services or activities, taking into account any 
amount transferred under subsection (d)(2) of this 
section.’’. 
(e) EXPANSION
OF
AUTHORITY
TO
TRANSFER 
FUNDS.—Section 404(d) (42 U.S.C. 604(d)) is amended 
by striking paragraphs (1) through (3) and inserting the 
following: 
‘‘(1) IN GENERAL.—A State may transfer not 
more than 50 percent of the grant made to the State 
under section 403(a)(1) to a State program pursu-
ant to any or all of the following provisions of law: 
‘‘(A) The Child Care and Development 
Block Grant Act of 1990. 
‘‘(B) Title I of the Workforce Innovation 
and Opportunity Act. 
‘‘(C) Subpart 1 of part B of this title. 
‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE 
TO SUBPART 1 OF PART B.—A State may transfer 
not more than 10 percent of a grant made to the 
State under section 403(a)(1) to carry out State 
programs operated pursuant to the State plan devel-
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‘‘(ii) not more than 15 percent of the 
funds will be reserved for statewide work-
force investment activities referred to in 
section 128(a)(1) of the Workforce Innova-
tion and Opportunity Act. 
‘‘(4) WIOA TRANSFER AUTHORITY NOT AVAIL-
ABLE TO STATES EXCLUDING THE STATE JOBS PRO-
GRAM AS A MANDATORY ONE-STOP PARTNER UNDER 
THE WIOA.—The authority provided by paragraph 
(1)(B) of this subsection may not be exercised by a 
State that has provided the notification referred to 
in section 407(a)(2)(F).’’. 
SEC. 9. TARGETING FUNDS TO CORE PURPOSES. 
(a) REQUIREMENT THAT STATES RESERVE 25 PER-
CENT OF JOBS GRANT FOR SPENDING ON CORE ACTIVI-
TIES.—Section 408(a) (42 U.S.C. 608(a)) is amended by 
adding at the end the following: 
‘‘(13) REQUIREMENT
THAT
STATES
RESERVE 
25 PERCENT OF JOBS GRANT FOR SPENDING ON 
CORE
ACTIVITIES.—A State to which a grant is 
made under section 403(a)(1) for a fiscal year shall 
expend not less than 25 percent of the grant on as-
sistance, case management, work supports and sup-
portive services, work, wage subsidies, work activities 
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(as defined in section 407(d)), and non-recurring 
short-term benefits.’’. 
(b) REQUIREMENT THAT AT LEAST 25 PERCENT OF 
QUALIFIED STATE EXPENDITURES BE FOR CORE ACTIVI-
TIES.—Section 408(a) (42 U.S.C. 608(a)), as amended by 
subsection (a) of this section, is amended by adding at 
the end the following: 
‘‘(14) REQUIREMENT THAT AT LEAST 25 PER-
CENT OF QUALIFIED STATE EXPENDITURES BE FOR 
CORE ACTIVITIES.—Not less than 25 percent of the 
qualified State expenditures (as defined in section 
409(a)(7)(B)(ii)) of a State during the fiscal year 
shall be for assistance, case management, work sup-
ports and supportive services, work, wage subsidies, 
work activities (as defined in section 407(d)), and 
non-recurring short-term benefits.’’. 
(c) PHASE-OUT
OF COUNTING
OF THIRD-PARTY 
CONTRIBUTIONS
AS
QUALIFIED
STATE
EXPENDI-
TURES.—Section 408(a) (42 U.S.C. 608(a)), as amended 
by subsections (a) and (b) of this section, is amended by 
adding at the end the following: 
‘‘(15) PHASE-OUT
OF
COUNTING
OF
THIRD- 
PARTY
CONTRIBUTIONS
AS
QUALIFIED
STATE
EX-
PENDITURES.— 
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‘‘(A) IN
GENERAL.—The qualified State 
expenditures 
(as 
defined 
in 
section 
409(a)(7)(B)(i)) of a State for a fiscal year 
that are attributable to the value of goods and 
services provided by a source other than a State 
or local government shall not exceed the appli-
cable percentage of the expenditures for the fis-
cal year. 
‘‘(B) APPLICABLE PERCENTAGE.—In sub-
paragraph (A), the term ‘applicable percentage’ 
means, with respect to a fiscal year— 
‘‘(i) 75 percent, in the case of fiscal 
year 2023; 
‘‘(ii) 50 percent, in the case of fiscal 
year 2024; 
‘‘(iii) 25 percent, in the case of fiscal 
year 2025; and 
‘‘(iv) 0 percent, in the case of fiscal 
year 2026 or any succeeding fiscal year.’’. 
SEC. 10. STRENGTHENING PROGRAM INTEGRITY BY MEAS-
URING IMPROPER PAYMENTS. 
Section 404 (42 U.S.C. 604) is amended by adding 
at the end the following: 
‘‘(l) 
APPLICABILITY
OF
IMPROPER
PAYMENTS 
LAWS.— 
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‘‘(1) IN
GENERAL.—The Improper Payments 
Information Act of 2002 and the Improper Pay-
ments Elimination and Recovery Act of 2010 shall 
apply to a State in respect of the State program 
funded under this part in the same manner in which 
such Acts apply to a Federal agency. 
‘‘(2) REGULATIONS.—Within 2 years after the 
date of the enactment of this subsection, the Sec-
retary shall prescribe regulations governing how a 
State reviews and reports improper payments under 
the State program funded under this part.’’. 
SEC. 11. PROHIBITION ON STATE DIVERSION OF FEDERAL 
FUNDS TO REPLACE STATE SPENDING. 
Section 408(a) (42 U.S.C. 608(a)), as amended by 
section 9 of this Act, is amended by adding at the end 
the following: 
‘‘(16) NON-SUPPLANTATION
REQUIREMENT.— 
Funds made available to a State under this part 
shall be used to supplement, not supplant, State 
general revenue spending on activities described in 
section 404.’’. 
SEC. 12. INCLUSION OF POVERTY REDUCTION AS A PRO-
GRAM PURPOSE. 
Section 401(a) (42 U.S.C. 601(a)) is amended— 
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(1) by striking ‘‘and’’ at the end of paragraph 
(3); 
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(5) reduce child poverty by increasing employ-
ment entry, retention, and advancement of needy 
parents.’’. 
SEC. 13. WELFARE FOR NEEDS NOT WEED. 
(a) 
PROHIBITION.—Section 
408(a)(12)(A) 
(42 
U.S.C. 608(a)(12)(A)) is amended— 
(1) by striking ‘‘or’’ at the end of clause (ii); 
(2) by striking the period at the end of clause 
(iii) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(iv) any establishment that offers 
marihuana (as defined in section 102(16) 
of the Controlled Substances Act) for 
sale.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the date that is 3 years 
after the date of the enactment of this Act. 
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SEC. 14. STRENGTHENING ACCOUNTABILITY THROUGH 
HHS APPROVAL OF STATE PLANS. 
(a) IN GENERAL.—Section 402 (42 U.S.C. 602) is 
amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph 
(1)— 
(i) by striking ‘‘27-month’’ and insert-
ing ‘‘24-month’’; and 
(ii) by striking ‘‘found’’ and inserting 
‘‘approved that’’; and 
(B) in paragraph (1)— 
(i) in subparagraph (A)— 
(I) by striking clauses (ii) and 
(iii) and inserting the following: 
‘‘(ii) Require work-eligible individuals 
(as defined in the regulations promulgated 
pursuant to section 407(i)(1)(A)(i)) to en-
gage in work activities consistent with sec-
tion 407(c). The document shall describe 
any in-home parenting program participa-
tion in which will be considered by the 
State as a work activity pursuant to sec-
tion 407(d)(13).’’; 
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(II) by redesignating clauses (iv) 
through (viii) as clauses (iii) through 
(vii), respectively; and 
(III) by adding at the end the 
following: 
‘‘(viii) Describe the case management 
practices of the State with respect to the 
requirements of section 408(b), provide a 
copy of the form or forms that will be used 
to assess a work-eligible individual (as so 
defined) and prepare an individual oppor-
tunity plan for the individual, describe how 
the State will ensure that such a plan is 
reviewed 
in 
accordance 
with 
section 
408(b)(6), and describe how the State will 
measure progress under the plan. 
‘‘(ix) Propose the requisite levels of 
performance for the State for purposes of 
section 407(a) for each year in the 2-year 
period referred to in subsection (d) of this 
section, and provide an explanation with 
supporting data of why each such level is 
appropriate. 
‘‘(x) Describe how the State will en-
gage low-income noncustodial parents who 
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owe child support and how such a parent 
will be provided with access to work sup-
port and other services under the program 
to which the parent is referred to support 
their employment and advancement. 
‘‘(xi) Describe how the State will com-
ply with improper payments provisions in 
section 404(l). 
‘‘(xii) 
Describe 
coordination 
with 
other programs, including whether the 
State intends to exercise authority pro-
vided by section 404(d) of this Act to 
transfer any funds paid to the State under 
this part, provide assurance that, in the 
case of a transfer to carry out a program 
under title I of the Workforce Innovation 
and Opportunity Act, the State will comply 
with section 404(d)(3)(B) of this Act and 
coordinate with the one-stop delivery sys-
tem under the Workforce Innovation and 
Opportunity Act, and describe how the 
State will coordinate with the programs in-
volved to provide services to families re-
ceiving assistance under the program re-
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ferred to in paragraph (1) of this sub-
section. 
‘‘(xiii) Describe how the State will 
promote marriage, such as through tem-
porary disregard of the income of a new 
spouse when an individual receiving assist-
ance under the State program marries so 
that the couple doesn’t automatically lose 
benefits due to marriage. 
‘‘(xiv) Describe how the State will 
allow for a transitional period of benefits, 
such as through temporary earned income 
disregards or a gradual reduction in the 
monthly benefit amount, for an individual 
receiving assistance who obtains employ-
ment and becomes ineligible due to an in-
crease in income obtained through employ-
ment or through an increase in wages.’’; 
and 
(ii) in subparagraph (B), by striking 
clauses (iv) and (v); 
(2) by striking subsection (c) and inserting the 
following: 
‘‘(c) PUBLIC AVAILABILITY OF STATE PLANS.—The 
Secretary shall make available to the public a link to any 
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plan or plan amendment submitted by a State under this 
subsection.’’; and 
(3) by adding at the end the following: 
‘‘(d) 2-YEAR PLAN.—A plan submitted pursuant to 
this section shall be designed to be implemented during 
a 2-year period. 
‘‘(e) COMBINED PLAN ALLOWED.—A State may sub-
mit to the Secretary and the Secretary of Labor a com-
bined State plan that meets the requirements of sub-
sections (a) and (d) and that is for programs and activities 
under the Workforce Innovation and Opportunity Act. 
‘‘(f) APPROVAL OF PLANS.—The Secretary shall ap-
prove any plan submitted pursuant to this section that 
meets the requirements of subsections (a) through (d).’’. 
(b) DUTIES OF THE SECRETARY.— 
(1) COORDINATION OF ACTIVITIES; DISSEMINA-
TION
OF
INFORMATION.—Section 416 (42 U.S.C. 
616) is amended— 
(A) by inserting ‘‘(a) IN GENERAL.—’’ be-
fore ‘‘The programs’’; and 
(B) by adding at the end the following: 
‘‘(b) COORDINATION OF ACTIVITIES.—The Secretary 
shall coordinate all activities of the Department of Health 
and Human Services relating to work activities (as defined 
in section 407(d)) and requirements and measurement of 
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employment outcomes, and, to the maximum extent prac-
ticable, coordinate the activities of the Department in this 
regard with similar activities of other Federal entities. 
‘‘(c) DISSEMINATION OF INFORMATION.—The Sec-
retary shall disseminate, for voluntary informational pur-
poses, information on practices that scientifically valid re-
search indicates are most successful in improving the qual-
ity of State and tribal programs funded under this part.’’. 
(c) TECHNICAL ASSISTANCE.— 
(1) IN GENERAL.—Section 406 (42 U.S.C. 606) 
is amended to read as follows: 
‘‘SEC. 406. TECHNICAL ASSISTANCE. 
‘‘(a) IN GENERAL.—The Secretary shall provide tech-
nical assistance to States and Indian tribes (which may 
include providing technical assistance on a reimbursable 
basis), which shall be provided by qualified experts on 
practices grounded in scientifically valid research, where 
appropriate, to support activities related publication of 
State performance under section 407(b) and to carry out 
State and tribal programs funded under this part. 
‘‘(b) RESERVATION OF FUNDS.—The Secretary shall 
reserve not more than 0.25 percent of the amount appro-
priated by section 403(a)(1)(C) for a fiscal year to carry 
out subsection (a) of this section.’’. 
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(2) 
CONFORMING
AMENDMENT.—Section 
403(a)(1)(B) (42 U.S.C. 603(a)(1)(B)) is amended 
by 
striking 
‘‘percentage 
specified 
in 
section 
413(h)(1)’’ and inserting ‘‘the sum of the percent-
ages specified in sections 406(b) and 413(h)’’. 
SEC. 15. ALIGNING AND IMPROVING DATA REPORTING. 
(a) REQUIREMENT THAT STATES REPORT FULL- 
POPULATION
DATA.—Section 411(a)(1) (42 U.S.C. 
611(a)(1)) is amended— 
(1) by striking subparagraph (B); 
(2) by striking ‘‘(1) GENERAL REPORTING RE-
QUIREMENT.—’’; and 
(3) by— 
(A) redesignating— 
(i) subparagraph (A) as paragraph 
(1); 
(ii) clauses (i) through (xvii) of sub-
paragraph (A) as subparagraphs (A) 
through (Q), respectively; 
(iii) subclauses (I) through (V) of 
clause (ii) as clauses (i) through (v), re-
spectively; 
(iv) subclauses (I) through (VII) of 
clause (xi) as clauses (i) through (vii), re-
spectively; and 
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