of the quarterly TANF grant, as defined in
clause (ii).
‘‘(ii) 
DEFINITION
OF
QUARTERLY
TANF GRANT.—In this paragraph, the term
‘quarterly TANF grant’ means, with re-
spect to a State, 1⁄4 of the State family as-
sistance grant under subsection (a)(1) for
fiscal year 2002.
‘‘(C) NEEDY STATE.—
‘‘(i) IN GENERAL.—A State is a needy
State for purposes of this paragraph if—
‘‘(I) the average rate of total un-
employment in the State (seasonally
adjusted) for the most recent 3
months for which data are available
for all States—
‘‘(aa) is at least 6.5 percent;
or
‘‘(bb) has increased by the
lesser of 50 percent, or 1.5 per-
centage points, over the lesser of
the average rate of total unem-
ployment in the State (seasonally
adjusted) for a comparable 3-
month period in fiscal year 2001
or fiscal year 2000; and
‘‘(II) the amount of the unobli-
gated Federal funds to be paid to the
State under this part is less than the
amount equal to 50 percent of the
State family assistance grant under
subsection (a)(1) for fiscal year 2001,
as measured, at the option of the
State—
‘‘(aa) as of September 30,
2001; or
‘‘(bb) for the most recently
completed quarter of fiscal year
2002, as determined under clause
(ii).
‘‘(ii) DETERMINATION
OF
UNOBLI-
GATED FEDERAL FUNDS.—For purposes of
clause (i)(bb), the unobligated Federal
funds to be paid to the State under this
part for the most recently completed quar-
ter of fiscal year 2002 are the difference
between—
‘‘(I) 
the 
unobligated 
Federal
funds to be paid to the State at the
end of fiscal year 2001; and
‘‘(II) the difference between—
‘‘(aa) the total Federal ex-
penditures and obligations under
this part (regardless of the year
in which the Federal funds were
awarded) for the most recently
completed quarter of fiscal year
2002 and all previous quarters in
fiscal year 2002; and
‘‘(bb) the sum of the total of
the quarterly TANF grants (as
defined in subparagraph (B)(ii))
awarded to the State for the
most recently completed quarter
of fiscal year 2002, and the total
of the quarterly supplemental
grants (as defined in clause (iii)),
if any, made to the State for
such most recent quarter.
‘‘(iii) DEFINITION
OF
QUARTERLY
SUPPLEMENTAL
GRANT.—In this para-
graph, the term ‘quarterly supplemental
grant’ means, with respect to a State, 1⁄4
of the grant made to the State (if any)
under subsection (a)(3) for fiscal year
2002.
‘‘(D) NONAPPLICATION OF ANNUAL REC-
ONCILIATION
REQUIREMENT.—Paragraph (6)
shall not apply to payments made under this
subsection for fiscal year 2002.’’.
(b) REALIGNMENT OF RELATED MAINTENANCE OF
EFFORT REQUIREMENT.—Section 409(a)(10) of the So-
cial Security Act (42 U.S.C. 609(a)(10)) is amended by
striking ‘‘100 percent’’ and inserting ‘‘the applicable per-
centage (as defined in paragraph (7)(B)(ii) of this sub-
section)’’.
(c) 
NOT
EXTENDED
IN
BASELINE.—Notwith-
standing paragraph (2) of section 257(b) the Balanced
Budget and Emergency Deficit Control Act of 1985 (2
U.S.C. 907(b)), the contingency fund grants made under
section 403(b)(9) of the Social Security Act (42 U.S.C.
603(b)(9)), as added by subsection (a), shall be assumed
to expire upon the conclusion of fiscal year 2002 for pur-
poses of that Act.
Æ