revenue established by the State or local gov-
ernment; and 
‘‘(ii) are not received as any form of grant 
from the Federal Government, 
shall not be considered as Federal means-tested wel-
fare spending even if such state and local expendi-
tures take the form of contributions to Federal pro-
grams listed or defined in subparagraphs (A) and 
(B).’’. 
SEC. 402. REPORTS TO BUDGET COMMITTEES. 
Section 202(e)(1) of the Congressional Budget Act 
of 1974 is amended by inserting ‘‘(A)’’ after ‘‘(1)’’ and 
by inserting at the end the following new subparagraph: 
‘‘(B) Beginning with the first fiscal year that 
begins after the date of enactment of this subsection 
and after any monthly rate of unemployment during 
the immediately preceding fiscal year is below 6.5 
percent, the Director shall include in each report 
submitted to the Committees on the Budget of the 
House of Representatives and the Senate under sub-
paragraph (A) the following information for the fis-
cal year commencing on October 1 of the year in 
which the report is submitted and for each of the en-
suing 4 fiscal years: 
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‘‘(i) The Congressional Budget Office base-
line level of Federal spending for aggregate 
means-tested welfare programs. 
‘‘(ii) The aggregate level of Federal means- 
tested welfare spending computed by taking the 
aggregate level of means-tested welfare spend-
ing for fiscal year 2007 and adjusting that for 
inflation using the Consumer Price Index for 
All Urban Consumers, U.S. City Average, All 
Items, Not Seasonally Adjusted (CPI–U), as 
computed by the Bureau of Labor Statistics, 
for all fiscal years occurring after fiscal year 
2007 and before the applicable fiscal year.’’. 
SEC. 403. CONTENT OF CONCURRENT RESOLUTIONS ON 
THE BUDGET. 
Section 301 of the Congressional Budget Act of 1974 
is amended by adding at the end the following new sub-
section: 
‘‘(j) MEANS-TESTED WELFARE SPENDING.—Begin-
ning with the first fiscal year that begins after the date 
of enactment of this subsection and after any monthly rate 
of unemployment during the immediately preceding fiscal 
year is below 6.5 percent, the concurrent resolution on the 
budget for the applicable fiscal year shall set forth the ap-
propriate level for aggregate means-tested welfare spend-
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ing for the first fiscal year of that concurrent resolution 
and for at least each of the 4 ensuing fiscal years. Such 
level shall not exceed the aggregate level of Federal means- 
tested welfare spending for fiscal year 2007, adjusted for 
inflation using the Consumer Price Index for All Urban 
Consumers, U.S. City Average, All Items, Not Seasonally 
Adjusted (CPI–U), as computed by the Bureau of Labor 
Statistics, for all fiscal years occurring after fiscal year 
2007 and before the applicable fiscal year.’’. 
SEC. 404. ALLOCATIONS OF MEANS-TESTED WELFARE 
SPENDING. 
(a) IN GENERAL.—Section 302 of the Congressional 
Budget Act of 1974 is amended by adding at the end the 
following new subsection: 
‘‘(h) MEANS-TESTED WELFARE SPENDING LIMIT.— 
‘‘(1) FURTHER
DIVISION
OF
AMOUNTS.—For 
any concurrent resolution on the budget for which 
levels for aggregate means-tested welfare spending 
are set forth under section 301(j), in the House of 
Representatives and the Senate, the amounts allo-
cated under subsection (a) shall be further divided 
to establish an allocation of— 
‘‘(A) total new budget authority and total 
outlays for discretionary means-tested welfare 
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spending in appropriation measures for the first 
fiscal year of the resolution on the budget; and 
‘‘(B) total new budget authority and total 
outlays for mandatory means-tested welfare 
spending for the first fiscal year of the resolu-
tion on the budget and at least each of the en-
suing 4 fiscal years to all other committees of 
the House of Representatives and the Senate 
that have jurisdiction over legislation providing 
mandatory means-tested welfare spending. 
‘‘(2) POINT
OF
ORDER.—It shall not be in 
order in the House of Representatives or the Senate 
to consider any bill, joint resolution, or amendment 
if— 
‘‘(A) the enactment of such bill or resolu-
tion as reported; 
‘‘(B) the adoption and enactment of such 
amendment; or 
‘‘(C) the enactment of such bill or resolu-
tion in the form recommended in such con-
ference report, 
would cause the applicable allocation of new budget 
authority or outlays made under subparagraph (A) 
or (B) of paragraph (1) for a fiscal year to be ex-
ceeded.’’. 
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(b) CONFORMING AMENDMENT.—Section 302(b) of 
the Congressional Budget Act of 1974 is amended by 
striking ‘‘under subsection (a)’’ and inserting ‘‘under sub-
sections (a) and (h)’’. 
SEC. 405. RECONCILIATION. 
Section 310(a) of the Congressional Budget Act of 
1974 is amended as follows: 
(1) Strike ‘‘or’’ at the end of paragraph (3) and 
strike the period at the end of paragraph (4) and in-
sert ‘‘; and’’. 
(2) Redesignate paragraph (4) as paragraph 
(5), and in paragraph (5) as redesignated, strike 
‘‘and (3)’’ and insert ‘‘(3), and (4)’’. 
(3) After paragraph (3), insert the following 
new paragraph: 
‘‘(4) specify the total amount by which new 
budget authority for such fiscal year for mandatory 
means-tested welfare spending contained in laws, 
bills, and resolutions within the jurisdiction of a 
committee is to be changed and direct that com-
mittee to determine and recommend changes to ac-
complish a change of such total amount, which 
amount shall be the amount by which the Congres-
sional Budget Office baseline level of spending for 
aggregate mandatory means-tested welfare programs 
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exceeds the allocation made pursuant to section 
302(h)(1)(B) for such fiscal year.’’. 
TITLE V—GRANTS TO PROMOTE 
SELF-SUFFICIENCY 
SEC. 501. GRANTS TO STATES. 
(a) PURPOSE.—The purpose of this title is to encour-
age States to develop policies to promote self-sufficiency 
and prosperity and to reduce poverty and Government de-
pendence. 
(b) GRANTS.—The Social Security Act is amended by 
adding at the end the following: 
‘‘TITLE XXII—GRANTS TO STATES 
TO 
PROMOTE 
SELF-SUFFI-
CIENCY 
AND 
PROSPERITY 
AND TO REDUCE DEPEND-
ENCE 
‘‘SEC. 2201. GRANTS TO STATES. 
‘‘(a) IN GENERAL.—The Secretary may provide 
grants to States to reward reductions in poverty and Gov-
ernment dependence and increases in self-sufficiency. 
‘‘(b) ALLOCATION OF GRANTS TO STATES.—For each 
fiscal year for which funds are made available under sub-
section (e), the Secretary shall make a grant in an amount 
equal to $100,000,000 to each of the 3 States with the 
greatest percentage increases in the self-sufficiency ratio 
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be expended for health benefits coverage that includes cov-
erage of abortion. 
SEC. 603. PROHIBITION ON TAX BENEFITS RELATING TO 
ABORTION. 
For taxable years beginning after the date of the en-
actment of this section, no credit shall be allowed under 
the internal revenue laws with respect to amounts paid 
or incurred for an abortion or with respect to amounts 
paid or incurred for a health benefits plan (including pre-
mium assistance) that includes coverage of abortion. 
SEC. 604. CONSTRUCTION RELATING TO SEPARATE COV-
ERAGE. 
Nothing in this title shall be construed as prohibiting 
any individual, entity, or State or locality from purchasing 
separate abortion coverage or health benefits coverage 
that includes abortion so long as such coverage is paid 
for entirely using only funds not authorized or appro-
priated by Federal law and such coverage shall not be pur-
chased using matching funds required for a federally sub-
sidized program, including a State’s or locality’s contribu-
tion of Medicaid matching funds. 
SEC. 605. CONSTRUCTION RELATING TO THE USE OF NON- 
FEDERAL FUNDS FOR HEALTH COVERAGE. 
Nothing in this title shall be construed as restricting 
the ability of any non-Federal health benefits coverage 
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provider from offering abortion coverage, or the ability of 
a State or locality to contract separately with such a pro-
vider for such coverage, so long as only funds not author-
ized or appropriated by Federal law are used and such 
coverage shall not be purchased using matching funds re-
quired for a federally subsidized program, including a 
State’s or locality’s contribution of Medicaid matching 
funds. 
SEC. 606. TREATMENT OF ABORTIONS RELATED TO RAPE, 
INCEST, OR PRESERVING THE LIFE OF THE 
MOTHER. 
The limitations established in this title shall not apply 
to an abortion— 
(1) if the pregnancy is the result of an act of 
rape or incest; or 
(2) in the case where a woman suffers from a 
physical disorder, physical injury, or physical illness 
that would, as certified by a physician, place the 
woman in danger of death unless an abortion is per-
formed, including a life-endangering physical condi-
tion caused by or arising from the pregnancy itself. 
Æ 
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