the reservations required by section 691(c) exceeds 
$850,000,000, no State shall receive under this sec-
tion less than 3⁄4 of 1 percent of the remaining 
amount. 
‘‘(c) GRANTS AND PAYMENTS.—Subject to section 
677, the Secretary shall make grants to eligible States for 
the allotments described in subsections (a) and (b). The 
Secretary shall make payments for the grants in accord-
ance with section 6503(a) of title 31, United States Code. 
The Secretary shall allocate the amounts allotted under 
subsections (a) and (b) quarterly, notify the States of their 
respective allocations and make each State’s quarterly al-
location amount available for expenditure by the State no 
later than 30 days after the start of the fiscal quarter for 
which the Secretary is allocating the funds. 
‘‘(d) DEFINITION.—In this section, the term ‘State’ 
does not include Guam, American Samoa, the United 
States Virgin Islands, and the Commonwealth of the 
Northern Mariana Islands. 
‘‘SEC. 677. PAYMENTS TO INDIAN TRIBES. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) INDIAN.—The term ‘Indian’ means a 
member of an Indian tribe or tribal organization. 
‘‘(2) INDIAN
TRIBE
OR
TRIBAL
ORGANIZA-
TION.—The term ‘Indian tribe or tribal organiza-
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tion’ means a tribe, band, or other organized group 
recognized in the State in which the tribe, band, or 
group resides, or considered by the Secretary of the 
Interior, to be an Indian tribe or an Indian organi-
zation for any purpose. 
‘‘(b) RESERVATION.— 
‘‘(1) APPLICATION.—Paragraph (2) shall apply 
only if, with respect to any State, the Secretary— 
‘‘(A) receives a request from the governing 
body of an Indian tribe or tribal organization 
within such State that assistance under this 
subtitle be made available directly to such tribe 
or organization; and 
‘‘(B) determines that the members of such 
Indian tribe or tribal organization would be bet-
ter served by means of grants made directly to 
such tribe or organization to provide benefits 
under this subtitle. 
‘‘(2) AMOUNT.—The Secretary shall reserve 
from amounts allotted to a State under section 676 
for a fiscal year, not less than the amount that bears 
the same ratio to the State allotment for the fiscal 
year as the population of all eligible Indians for 
whom a determination has been made under para-
graph (1)(B) bears to the population of all individ-
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uals eligible for assistance through a grant made 
under section 676 to such State. 
‘‘(c) AWARDS.—The amount reserved by the Sec-
retary on the basis of a determination made under sub-
section (b)(1)(B) shall be made available by grant to the 
Indian tribe or tribal organization serving the Indians for 
whom the determination has been made under subsection 
(b)(1)(B). 
‘‘(d) PLAN.—In order for an Indian tribe or tribal 
organization to be eligible for a grant award for a fiscal 
year under this section, the tribe or organization shall sub-
mit to the Secretary a plan for such fiscal year that meets 
such criteria as the Secretary may prescribe by regulation. 
‘‘(e) ALTERNATIVE PERFORMANCE MEASUREMENT 
SYSTEM.—The Secretary may implement alternative re-
quirements for tribal implementation of the requirements 
of section 678(c). 
‘‘SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY 
ACTION 
PROGRAM 
PLANS 
AND 
APPLICA-
TIONS. 
‘‘(a) STATE LEAD AGENCY.— 
‘‘(1) DESIGNATION.—The chief executive officer 
of a State desiring to receive a grant under section 
675 or 676 shall designate, in an application sub-
mitted to the Secretary under subsection (b), an ap-
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propriate State agency that agrees to comply with 
the requirements of paragraph (2), to act as a lead 
agency for purposes of carrying out State activities 
under this subtitle. 
‘‘(2) DUTIES OF STATE LEAD AGENCIES.—The 
State lead agency— 
‘‘(A) shall be authorized by the chief exec-
utive officer to convene State agencies and co-
ordinate information and activities funded 
under this subtitle; 
‘‘(B) shall develop the State plan to be 
submitted to the Secretary under subsection 
(b), which shall be based primarily on the com-
munity action program plans of eligible entities, 
submitted to the State as a condition of receiv-
ing funding under this subtitle for approval by 
the State; 
‘‘(C) shall assist eligible entities— 
‘‘(i) in conducting periodic comprehen-
sive community needs assessments, not less 
often than every 3 years; 
‘‘(ii) in developing community action 
program plans; and 
‘‘(iii) in developing community action 
strategic plans; 
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‘‘(D) in conjunction with the development 
or revision of the State plan as required under 
subsection (b)— 
‘‘(i) shall hold at least one hearing in 
the State on the proposed plan or proposed 
revised plan, to provide to the public an 
opportunity to comment on the public 
record on the proposed use and distribu-
tion of funds under the plan; and 
‘‘(ii) not less than 15 days prior to 
the hearing, shall distribute notice of the 
hearing and a copy of the proposed plan or 
plan revision statewide to the public and 
directly to the chief executive officer and 
the chairperson of the board of each of the 
eligible entities (or designees) and other 
community services network organizations; 
and 
‘‘(E) not less often than every 3 years, in 
conjunction with the development of the State 
plan, shall hold at least 1 legislative hearing. 
‘‘(b) STATE APPLICATION FOR STATE PROGRAM AND 
STATE PLAN.—Beginning with the first fiscal year fol-
lowing the transition period described in section 3 of the 
Community Services Block Grant Reauthorization Act of 
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2019, to be eligible to receive a grant under section 675 
or 676, a State shall prepare and submit to the Secretary 
for approval an application containing a State plan cov-
ering a period of not more than 2 fiscal years. The applica-
tion shall be submitted not later than 30 days prior to 
the beginning of the first fiscal year covered by the plan, 
and shall contain such information as the Secretary shall 
require, including— 
‘‘(1) a description of the manner in which funds 
made available through the grant under section 675 
or 676 will be used to carry out the State activities 
described in section 679(b) and the State’s commu-
nity action program plans; 
‘‘(2) a summary of the community action pro-
gram plans of the eligible entities serving the State; 
‘‘(3) a description of the performance measure-
ment system in which the State and eligible entities 
participate under section 686(a)(1)(A); 
‘‘(4) a plan for the State’s oversight of eligible 
entities; 
‘‘(5) an assurance that the State will pay eligi-
ble entities in advance, unless otherwise authorized 
by the Uniform Guidance; 
‘‘(6) an assurance that no eligible entity in the 
State that received, in the previous fiscal year, fund-
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ing through a grant made under section 675 or 676 
will have such funding withheld, nor reduced below 
the proportional share of funding the entity received 
from the State in the previous fiscal year, nor elimi-
nated, nor its designation as an eligible entity termi-
nated, unless, after providing the affected entity (or 
entities, as applicable) with notice and an oppor-
tunity for a hearing on the record, the State deter-
mines that cause exists for such withholding, reduc-
tion, or elimination of funding or for termination of 
designation, subject to review by the Secretary as 
provided in subsection (c) of section 684; and, in the 
case of failure of an eligible entity to comply with 
the terms of a corrective action plan relating to cor-
rection of a serious deficiency, except according to 
the procedures set forth in subsection (b) of section 
684. For purposes of this subsection, the term 
‘cause’ means— 
‘‘(A) the failure of an eligible entity to 
comply with the terms of a corrective action 
plan relating to correction of a serious defi-
ciency as described in subsection 684(b); or 
‘‘(B) a statewide proportional distribution 
of funds provided through a community services 
block grant under this subtitle to respond to— 
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‘‘(i) the results of the most recently 
available census or other appropriate de-
mographic data; 
‘‘(ii) severe economic dislocation; or 
‘‘(iii) the designation of an eligible en-
tity to serve a geographic area that has 
been unserved for at least the previous 5 
years; 
‘‘(7) an assurance that each eligible entity serv-
ing the State has established procedures that permit 
a low-income individual, or a community organiza-
tion or religious organization, that considers low-in-
come individuals or the organization, respectively, to 
be inadequately represented on the board of the eli-
gible entity, to petition for adequate representation 
of such individuals or organization, respectively, on 
the board; 
‘‘(8) a description of the State’s requirements, 
and financial or other support, for each community 
action program plan and community action strategic 
plan of an eligible entity in the State and for the 
comprehensive community needs assessment de-
scribed in subsection (a)(2)(C)(i) on which the com-
munity action program plans are based, which as-
sessment may be coordinated with community needs 
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assessments conducted for programs other than the 
program carried out under this subtitle; and 
‘‘(9) a description of how the State will meas-
ure State and eligible entity performance in achiev-
ing the goals of the State plan and the community 
action program plans, respectively. 
‘‘(c) STATE PERFORMANCE REQUIREMENTS
AND 
BENCHMARKS.— 
‘‘(1) 
PERFORMANCE
REQUIREMENTS.—Con-
sistent with the requirements of section 686, fol-
lowing the transition period described in section 3 of 
the Community Services Block Grant Reauthoriza-
tion Act of 2019, in order to be eligible for a grant 
under section 675 or 676, each State shall adopt 
performance requirements and the performance 
benchmarks described in paragraph (2), to be in-
cluded as part of the performance measurement sys-
tem described in section 686. 
‘‘(2) ANNUAL
STATE
PERFORMANCE
BENCH-
MARKS.—Each State shall include in the State plan 
submitted under subsection (b), for each fiscal year 
after that transition period— 
‘‘(A) performance measurements for lead 
agency management quality; 
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‘‘(B) the State annual performance bench-
marks regarding programmatic activities de-
scribed in section 679(b); and 
‘‘(C) other performance measures, which 
shall include— 
‘‘(i) indicators of timely distribution 
(including advance payment, unless other-
wise authorized by the Uniform Guidance) 
and effective management of Federal funds 
by the State lead agency and of the com-
pliance with the requirements for State 
personnel and for management of activities 
funded under this subtitle (other than this 
subsection); and 
‘‘(ii) indicators concerning the results 
of activities carried out by the State under 
this subtitle. 
‘‘(d) APPROVAL.—The Secretary shall notify the chief 
executive officer of each State submitting an application 
containing a State plan under this section, of the approval, 
disapproval, or approval in part, of the application, within 
30 days after receiving the application. In the event of 
a full or partial disapproval, the Secretary’s notification 
shall include a description of changes necessary for final 
approval. In the event of a partial approval, the Secretary 
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may allow grantee use of funds for activities included in 
the portions of the plan which the Secretary has approved. 
In the event a State application fails to be approved in 
whole or in part before the end of the third month of the 
State program covered by such plan the Secretary shall 
award funding directly to eligible entities and other com-
munity services network organizations in the State (other 
than the State itself) as specified in section 684(a)(5)(C). 
‘‘(e) PUBLIC INSPECTION.—Each plan and revision 
to a State plan prepared under this section shall be dis-
tributed for public inspection and comment. A hearing on 
such plan or revision shall be held as required under sub-
paragraphs (D) and (E) of subsection (a)(2), but a State 
application for merger, combination, or privatization of 
funds under section 680(b) shall not be considered a revi-
sion. 
‘‘(f) APPLICATION FOR COMMUNITY ACTION PRO-
GRAM AND COMMUNITY ACTION PROGRAM PLAN.—Begin-
ning with the first fiscal year following the transition pe-
riod described in section 3 of the Community Services 
Block Grant Reauthorization Act of 2019, to be eligible 
to receive a subgrant under section 679(a), each eligible 
entity shall prepare and submit to the State for approval 
an application containing a community action program 
plan or plans covering a period of not more than 2 fiscal 
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years. Such application shall be submitted no later than 
90 days before the date for submission of the State appli-
cation to the Secretary. The application shall contain in-
formation on the intended implementation of the eligible 
entity’s activities, including demonstrating how the pro-
gram— 
‘‘(1) meets needs identified in the most recent 
comprehensive community needs assessment, and is 
consistent with the entity’s community action stra-
tegic plan for that period; and 
‘‘(2) achieves the purposes of this subtitle 
through programs, projects, and services, which may 
include the activities described in section 682. 
‘‘(g) ELIGIBLE ENTITY PERFORMANCE REQUIRE-
MENTS AND BENCHMARKS.—Not later than the end of the 
transition period described in section 3 of the Community 
Services Block Grant Reauthorization Act of 2019, each 
eligible entity participating in a program funded under 
this subtitle shall— 
‘‘(1) adopt performance benchmarks that in-
clude— 
‘‘(A) indicators concerning attainment of 
the goals of the entity’s annual community ac-
tion program plans; and 
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‘‘(B) indicators of timely and effective 
management of Federal and other funds; and 
‘‘(2) participate in a statewide performance 
measurement system under section 686. 
‘‘SEC. 679. STATE AND LOCAL USES OF FUNDS. 
‘‘(a) STATE SUBGRANTS TO ELIGIBLE ENTITIES AND 
OTHER ORGANIZATIONS.— 
‘‘(1) IN
GENERAL.—A State that receives a 
grant under section 675 or 676 shall— 
‘‘(A) reserve 2 percent of the funds made 
available through the grant for the Community 
Action Innovations Program described in sub-
section (b)(1)(C)(i); and 
‘‘(B) of the remainder, use not less than 
90 percent to make subgrants to eligible enti-
ties to enable the entities to implement pro-
grams, projects, or services for a purpose de-
scribed in section 672. 
‘‘(2) OBLIGATIONAL REQUIREMENTS.— 
‘‘(A) DATE
OF
OBLIGATION.—The State 
shall obligate the funds for subgrants described 
in paragraph (1)(B) not later than the later 
of— 
‘‘(i) the 30th day after the date on 
which the State receives from the Sec-
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retary a notice of funding availability for 
the State’s application under section 678; 
or 
‘‘(ii) the first day of the State pro-
gram year for which such funds are to be 
expended under the State application. 
‘‘(B) 
AVAILABILITY.—The 
State 
shall 
make available to eligible entities for expendi-
ture the funds for subgrants described in para-
graph (1)(B) not later than 10 days after re-
ceiving notice from the Secretary of the State’s 
quarterly allocation under section 676(c). 
Funds allocated to eligible entities through sub-
grants made under paragraph (1)(B) for a fis-
cal year shall be available for obligation by the 
eligible entity during that fiscal year and the 
succeeding fiscal year. 
‘‘(b) STATEWIDE ACTIVITIES.— 
‘‘(1) USE OF REMAINDER.— 
‘‘(A) IN GENERAL.—A State that receives 
a grant under section 675 or 676 shall, after 
carrying out subsection (a), use the remainder 
of the grant funds for activities described in the 
State’s application under section 678(b) as de-
scribed in subparagraphs (B) and (C) and for 
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administrative expenses subject to the limita-
tions in paragraph (2). 
‘‘(B) TRAINING AND TECHNICAL ASSIST-
ANCE.—After applying subsection (a) and sub-
paragraph (C), the State may use the remain-
ing grant funds for the purposes of providing to 
eligible entities training and technical assistance 
and resources, including training and technical 
assistance to assist eligible entities in building 
and using evidence designed to reduce poverty 
conditions and effectively administering funds 
under the Community Action Innovations Pro-
gram established under section 679(b)(1)(C). 
‘‘(C) INNOVATIVE
AND
EVIDENCE-BASED 
PROJECTS TO REDUCE POVERTY.— 
‘‘(i) IN
GENERAL.—The State shall 
use 
amounts 
reserved 
under 
section 
679(a)(1)(A) for a Community Action In-
novations Program to— 
‘‘(I) award subgrants, contracts, 
or cooperative agreements to eligible 
entities, their associations, or con-
sortia of such entities or associations, 
to facilitate innovation and use of evi-
dence-based practice (as defined in 
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section 673(7)) designed to reduce 
poverty conditions, including through 
two-generation approaches that create 
opportunities for, and address the 
needs of, parents and children to-
gether; and 
‘‘(II) disseminate results for pub-
lic use. 
‘‘(ii) PROJECTS.—A State shall award 
funds from its Community Action Innova-
tions Program for projects to enable— 
‘‘(I) replication and/or expansion 
of innovative practices with dem-
onstrated evidence of effectiveness, 
with priority given to those with the 
strongest evidence base as determined 
through a broad review of available 
studies; and/or 
‘‘(II) testing of innovative prac-
tices to determine their effectiveness, 
with priority given to those incor-
porating rigorous, independent evalua-
tion to further build the evidence 
base. 
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‘‘(iii) USE OF FUNDS.—The funds re-
served under this subparagraph may be 
used by subgrantees for resources or activi-
ties necessary to replicate, expand, or test 
innovative and evidence-based practices, in-
cluding costs of training and technical as-
sistance, evaluation, data collection, and 
technology. 
‘‘(iv) EXPENSES.—The funds reserved 
under this subparagraph may be used for 
reasonable expenses, of States and sub-
grantees, associated with administration of 
projects and dissemination of their results. 
‘‘(v) AWARDS
AND
OBLIGATION.—A 
State shall award and obligate funds re-
served for projects under this subpara-
graph during the first program year for 
which 
the 
funds 
are 
appropriated. 
Subgrant funds awarded under this sub-
paragraph shall remain available for ex-
penditure by the subgrantee for up to 36 
months after the date of award by the 
State, unless a longer period of availability 
is approved by the Secretary based on ex-
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tenuating circumstances and demonstrated 
evidence of effectiveness. 
‘‘(vi) MATCHING REQUIREMENTS.—In 
the case of innovative projects that are 
funded in part by funds authorized under 
a Federal law (other than this subtitle), 
that includes requirements for matching 
the Federal funds with non-Federal funds, 
funds made available under this subpara-
graph may be deemed to be non-Federal 
funds for purposes of the requirements of 
such law. 
‘‘(vii) REAL PROPERTY.—Land or fa-
cilities improved through a project receiv-
ing an award under this subparagraph, for 
which the amount of the award is less than 
50 percent of the total project cost, shall 
not be subject to the provisions of section 
687(a). 
‘‘(viii) ELIGIBILITY.—Activities fund-
ed under this subparagraph may include 
participants with incomes not exceeding 80 
percent of the area median income. 
‘‘(2) ADMINISTRATIVE CAP.— 
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‘‘(A) LIMITATION.—Of the amounts re-
maining after the reservation for the State 
Community Action Innovations Program under 
subsection (a)(1)(A) and the required funding 
for 
subgrants 
described 
under 
subsection 
(a)(1)(B), a State shall not spend more than 5 
percent of such remainder for administrative 
expenses. 
‘‘(B) DEFINITION.—In this paragraph, the 
term ‘administrative expenses’— 
‘‘(i) means the costs incurred by the 
State’s lead agency for carrying out plan-
ning and management activities, including 
monitoring, oversight, and reporting as re-
quired by this Act; and 
‘‘(ii) does not include the cost of ac-
tivities conducted under paragraph (1)(B) 
other than monitoring. 
‘‘(c) ELIGIBLE ENTITY USE OF FUNDS.—An eligible 
entity that receives a subgrant under subsection (a)(1)(B) 
shall use the subgrant funds to carry out a community 
action program plan that shall include— 
‘‘(1) programs, projects, and services that pro-
vide low-income individuals and families with oppor-
tunities— 
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‘‘(A) to secure and retain meaningful em-
ployment at a family supporting wage; 
‘‘(B) to secure an adequate education, im-
prove literacy and language ability, and obtain 
job-related skills; 
‘‘(C) to make better use of available in-
come and build assets; 
‘‘(D) to obtain and maintain adequate 
housing and a healthy living environment, in-
cluding addressing the heath care needs of indi-
viduals and families with services and through 
changes in local institutions and workplaces (in-
cluding institutions and workplaces managed by 
the eligible entity); or 
‘‘(E) to obtain emergency materials or 
other assistance to meet immediate individual 
or community urgent needs and prevent greater 
or more prolonged economic instability; and 
‘‘(2) activities that develop and maintain— 
‘‘(A) partnerships for the purpose of 
changing community, economic, and social con-
ditions of poverty, between the eligible entity 
and— 
‘‘(i) State and local public entities 
(such as schools, institutions of higher edu-
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cation, housing authorities, and law en-
forcement agencies); and 
‘‘(ii) private partners, including state-
wide and local businesses, associations of 
private employers, and private charitable 
and civic organizations; 
‘‘(B) linkages among organizations for co-
ordinating initiatives, services, and investments 
so as to avoid duplication, and maximize the ef-
fective use of community resources for creating 
economic opportunity, including developing last-
ing social and economic assets; or 
‘‘(C) new investments in the community to 
reduce the incidence of poverty, including devel-
oping lasting social and economic assets. 
‘‘SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS. 
‘‘(a) DESIGNATION AND REDESIGNATION OF ELIGI-
BLE ENTITIES IN UNSERVED AREAS.— 
‘‘(1) IN GENERAL.—If any geographic area of a 
State is not, or ceases to be, served by an eligible 
entity, the lead agency may, in consultation with 
local officials and organizations representing the 
area, solicit one or more applications and designate 
a new community action agency to provide pro-
grams, projects, or services to the area, that is— 
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‘‘(A) a community action agency that is a 
private, nonprofit organization and that is geo-
graphically located in an area within reasonable 
proximity of, or contiguous to, the unserved 
area that is already providing similar programs, 
projects, or services, and that has demonstrated 
financial capacity to manage and account for 
Federal funds; or 
‘‘(B) if no community action agency de-
scribed in subparagraph (A) is available, a pri-
vate, nonprofit organization (which may include 
an eligible entity) that is geographically located 
in, or is in reasonable proximity to, the 
unserved area and that is capable of providing 
a broad range of programs, projects, or services 
designed to achieve the purposes of this subtitle 
as stated in section 672. 
‘‘(2) REQUIREMENT.—In order to serve as the 
eligible entity for the service area, an entity de-
scribed in paragraph (1) shall agree to ensure that 
the governing board of directors of the entity will 
meet the requirements of subsection (c). 
‘‘(3) COMMUNITY.—A service area referred to 
in this subsection or a portion thereof shall be treat-
ed as a community for purposes of this subtitle. 
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‘‘(b) MERGER, COMBINATION, OR PRIVATIZATION OF 
ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—If an eligible entity receiv-
ing subgrant funds makes a determination described 
in paragraph (2) and notifies the State, the State— 
‘‘(A) shall assist in developing a plan for 
implementing such merger, combination, or pri-
vatization, including a budget for transitional 
costs not to exceed 2 years in duration; 
‘‘(B) upon approving such plans, may no-
tify the Secretary that the entities are in need 
of and eligible for funds from the merger incen-
tive fund established under section 682(a)(2); 
and 
‘‘(C) in the case of a merger or combina-
tion, shall provide to the merged or combined 
entity an amount of funding under section 
679(a)(1)(B) equal to the sum of amounts the 
merged or combined entities each received 
under section 679(a)(1)(B) immediately prior to 
the merger or combination. 
‘‘(2) COVERED MERGER, COMBINATION, OR PRI-
VATIZATION.—This subsection applies when— 
‘‘(A) 2 or more eligible entities determine 
that the geographic areas of a State that they 
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serve can be more effectively served under com-
mon control or shared management; or 
‘‘(B) a public organization that is an eligi-
ble entity determines that the area it serves can 
be more effectively served if it becomes a pri-
vate, nonprofit organization that is a public 
charity. 
‘‘(3) PLANS.—A State may establish require-
ments for merger, combination, or privatization 
plans and for a determination that the merged, com-
bined, or privatized entity, or entities, will be capa-
ble of conducting a broad range of programs, 
projects, or services designed to achieve the purposes 
of this subtitle as stated in section 672 consistent 
with the comprehensive needs assessments for the 
areas served. 
‘‘(4) STATE DETERMINATION.—If a State de-
termines that a merged, combined, or privatized en-
tity or entities will be capable of conducting a broad 
range of programs, projects, or services as specified 
in subsection (b)(3) above, it shall designate the 
merged, combined, or privatized entity or entities to 
serve the area(s) in question without soliciting appli-
cations from other entities. 
‘‘(c) TRIPARTITE BOARDS.— 
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‘‘(1) PRIVATE, NONPROFIT ORGANIZATIONS.— 
‘‘(A) BOARD.—In order for a private, non-
profit organization to be considered to be an eli-
gible entity for purposes of section 673(6), the 
entity shall be governed by a tripartite board of 
directors described in subparagraph (C) that 
fully participates in the development, planning, 
implementation, oversight, and evaluation of the 
program, project, or service carried out or pro-
vided through the subgrant made under section 
679(a)(1)(B) and all activities of the entity.’’ 
‘‘(B) SELECTION.—The members of the 
board referred to in subparagraph (A) shall be 
selected by the private, nonprofit organization. 
‘‘(C) COMPOSITION OF BOARD.—The board 
shall be composed so as to assure that— 
‘‘(i) 1⁄3 of the members of the board 
are elected public officials holding office on 
the date of selection, or their representa-
tives (but if an elected public official 
chooses not to serve, such official may des-
ignate a representative to serve as the vot-
ing board member); 
‘‘(ii)(I) not fewer than 1⁄3 of the mem-
bers are persons chosen in accordance with 
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democratic selection procedures adequate 
to assure that the members referred to in 
this clause are representative of low-income 
individuals and families in the service area; 
and 
‘‘(II) each member who is a represent-
ative of low-income individuals and families 
and is also selected to represent a specific 
geographic area under subclause (I) resides 
in such area; and 
‘‘(iii) the remainder of the members 
are representatives of business, industry, 
labor, religious, educational, charitable, or 
other significant private groups in the 
community. 
‘‘(D) 
EXPERTISE.—The 
eligible 
entity 
shall ensure that the members of the board in-
clude, or have direct access to, individuals with 
expertise in financial management, accounting, 
and law. 
‘‘(E) COMPLIANCE WITH TAX-EXEMPT AND 
OTHER REQUIREMENTS.—The board of a pri-
vate, nonprofit organization shall ensure that 
the board operates and conducts activities 
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under 
the 
subgrant 
made 
under 
section 
679(a)(1)(B) in a manner that complies with— 
‘‘(i) the requirements for maintaining 
tax-exempt status under section 501(a) of 
the Internal Revenue Code of 1986 (26 
U.S.C. 501(a)) regarding the governance 
of charities under section 501(c)(3) of the 
Internal Revenue Code of 1986 (26 U.S.C. 
501(c)(3)); and 
‘‘(ii) applicable requirements of State 
nonprofit corporation and public charities 
law. 
‘‘(2) PUBLIC ORGANIZATIONS.— 
‘‘(A) BOARD.—In order for a local public 
(governmental) entity to be considered to be an 
eligible entity for purposes of section 673(6), 
the entity shall ensure that the program, 
project, or service carried out or provided 
through the subgrant made under section 
679(a)(1)(B) is administered under the super-
vision of a tripartite board described in sub-
paragraph (C) that fully participates in the de-
velopment, planning, implementation, oversight, 
and evaluation of such program, project, or 
service. 
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‘‘(B) SELECTION.—The members of the 
board referred to in subparagraph (A) shall be 
selected by the local public entity. 
‘‘(C) COMPOSITION OF BOARD.—The board 
shall be composed so as to assure that— 
‘‘(i) not more than 1⁄3 of the members 
of the board are employees or officials, in-
cluding elected officials, of the unit of gov-
ernment in which the organization is lo-
cated; 
‘‘(ii)(I) not fewer than 1⁄3 of the mem-
bers are persons chosen in accordance with 
democratic selection procedures adequate 
to assure that the members referred to in 
this clause are representative of low-income 
individuals and families in the service area; 
and 
‘‘(II) each member who is a represent-
ative of low-income individuals and families 
and is also selected to represent a specific 
geographic area under subclause (I) resides 
in such area; and 
‘‘(iii) the remainder of the members 
are representatives of business, industry, 
labor, religious, educational, charitable, or 
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other significant private groups in the 
community. 
‘‘(D) EXPERTISE.—The organization shall 
ensure that the members of the board include 
or have direct access to individuals with exper-
tise in financial management, accounting, and 
law. 
‘‘(E) COMPLIANCE WITH STATE REQUIRE-
MENTS AND POLICY.—The board of a public or-
ganization shall ensure that the board operates 
in a manner that complies with State require-
ments for open meetings, financial trans-
parency, and State open records policy. 
‘‘(3) SAFEGUARD.—Neither the Federal Gov-
ernment nor a State or local government shall re-
quire a religious organization to alter its form of in-
ternal governance, except (for purposes of adminis-
tration of the community services block grant pro-
gram) as provided in section 680(c). 
‘‘(d) OPERATIONS AND DUTIES OF THE BOARD.— 
The duties of a board described in paragraph (1) or (2) 
of subsection (c) shall include— 
‘‘(1) in the case of a board for a private, non-
profit organization that is an eligible entity, having 
legal and financial responsibility for administering 
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and overseeing the eligible entity, including making 
proper use of Federal funds; 
‘‘(2) establishing terms for officers and adopt-
ing a code of ethical conduct, including a conflict of 
interest policy for board members; 
‘‘(3) participating in each comprehensive com-
munity needs assessment, developing and adopting 
as a policy for the corresponding eligible entity a 
community action strategic plan, including provi-
sions for the use of funds under this subtitle, and 
preparing the community action program plan for 
the use of funds under this subtitle; 
‘‘(4) approving the eligible entity’s operating 
budget; 
‘‘(5) reviewing all major policies of the eligible 
entity, including conducting (for private, nonprofit 
organizations that are eligible entities) and partici-
pating in (for local public entities that are eligible 
entities) annual performance reviews of the eligible 
entity’s chief executive officer (or individual holding 
an equivalent position); 
‘‘(6) conducting assessments of the eligible enti-
ty’s progress in carrying out programmatic and fis-
cal provisions in the community action program 
plan, and in taking any corrective action; and 
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‘‘(7) adopting (for private, nonprofit organiza-
tions that are eligible entities) and reviewing (for 
local public entities that are eligible entities) per-
sonnel policies and procedures, including policies and 
procedures for hiring, annual evaluation, compensa-
tion, and termination, of the eligible entity’s chief 
executive officer (or individual holding a similar po-
sition). 
‘‘SEC. 681. OFFICE OF COMMUNITY SERVICES. 
‘‘(a) OFFICE.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish an Office of Community Services in the De-
partment to carry out the functions of this subtitle. 
‘‘(2) DIRECTOR.—The Office shall be headed by 
a Director (referred to in this section as the ‘Direc-
tor’). 
‘‘(b) GRANTS, CONTRACTS, 
AND
COOPERATIVE 
AGREEMENTS.—The Secretary, acting through the Direc-
tor, shall carry out the functions of this subtitle through 
grants, contracts, or cooperative agreements. 
‘‘(c) FEDERAL PERFORMANCE BENCHMARKS.—The 
Secretary shall, prior to the beginning of each fiscal year, 
publish Federal performance benchmarks for the Office of 
Community Services for such year, which shall include tar-
gets for— 
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‘‘(1) the timeliness of— 
‘‘(A) apportionments and allotments of ap-
propriated funds to States; and 
‘‘(B) the use of funds appropriated under 
section 691(b); and 
‘‘(2) the implementation of the requirements of 
the uniform administrative requirements, cost prin-
ciples, and audit requirements described in section 
674(c) with respect to funds appropriated and activi-
ties conducted under this subtitle by the Depart-
ment, the States, and other grantees. 
‘‘SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RE-
LATED ACTIVITIES. 
‘‘(a) ACTIVITIES.— 
‘‘(1) IN GENERAL.—The Secretary shall— 
‘‘(A) use amounts reserved under section 
691(c)(2)(A) for training, technical assistance, 
planning, evaluation, and performance measure-
ment, to assist in— 
‘‘(i) building and using evidence de-
signed to reduce poverty conditions, includ-
ing through development and dissemina-
tion of information about clearinghouses 
and other resources that identify relevant 
evidence-based 
initiatives, 
for 
use 
by 
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States, eligible entities, and associations of 
such entities in connection with the Com-
munity Action Innovations Program estab-
lished under section 679(b)(1)(C); 
‘‘(ii) carrying out professional develop-
ment activities that expand the capacity of 
eligible entities; 
‘‘(iii) carrying out performance meas-
urement, reporting, and data collection ac-
tivities related to programs, projects, and 
services carried out under this subtitle; and 
‘‘(iv) correcting programmatic defi-
ciencies, including such deficiencies of eli-
gible entities; and 
‘‘(B) subject to paragraph (2), distribute 
the 
amounts 
reserved 
under 
section 
691(c)(2)(B) directly to States, eligible entities, 
or other community services network organiza-
tions and their partners, including institutions 
of higher education, for— 
‘‘(i) professional development for key 
community services network organization 
personnel; 
‘‘(ii) activities to improve community 
services network organization program, fi-
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nancial management, compliance, and gov-
ernance practices (including practices re-
lated to performance management informa-
tion systems); 
‘‘(iii) activities that train community 
services network organizations and their 
staff and board members to effectively ad-
dress the needs of low-income families and 
communities through place-based strategies 
for coordinated investment and integrated 
service delivery; and 
‘‘(iv) activities that train community 
services network organizations in building 
and using evidence designed to reduce pov-
erty conditions and that support effective 
administration of funds under the Commu-
nity Action Innovations Program estab-
lished under section 679(b)(1)(C). 
‘‘(2) SPECIAL RULE.— 
‘‘(A) IN GENERAL.—In distributing the re-
served amounts under paragraph (1)(B), the 
Secretary shall ensure that 7.5 percent of such 
reserved amounts remain available until the end 
of the second quarter of the year for which 
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funds are appropriated to be used by the Sec-
retary to award grants to States for funds— 
‘‘(i) to support the one-time costs in-
curred by 2 or more eligible entities for 
legal, financial, and other activities re-
quired to effect a merger or other combina-
tion of operations and/or programs that 
achieves greater efficiency and impact for 
the use of funds appropriated under this 
subtitle; or 
‘‘(ii) for a public organization that is 
an eligible entity to become a private, non-
profit organization that is a public charity. 
When such funds are awarded by the Sec-
retary to a State, they shall remain avail-
able for obligation by the eligible entity (or 
entities) to which the State awards them 
during the fiscal year in which the State 
awards the funds to the eligible entity (or 
entities) and the succeeding fiscal year. 
‘‘(B) AVAILABILITY AFTER SECOND QUAR-
TER.—Any funds not obligated for merger, 
combination, or privatization incentives de-
scribed in subparagraph (A) by the end of the 
second quarter of the fiscal year shall be avail-
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able for other authorized purposes described in 
this subsection. 
‘‘(b) LIMITATION.—None of the funds allocated 
under subsection (a) may be used for expenses or salaries 
of Federal employees or of Federal contractors performing 
services that would otherwise be performed by Federal em-
ployees. 
‘‘(c) GRANTS, CONTRACTS, 
AND
COOPERATIVE 
AGREEMENTS.—The activities described in subsection 
(a)(1)(A) shall be carried out annually by the Secretary 
through grants, contracts, or cooperative agreements with 
appropriate entities, which shall include all statewide asso-
ciations of eligible entities that meet the requirements for 
receipt of Federal funds. 
‘‘SEC. 683. STATE MONITORING OF ELIGIBLE ENTITIES. 
‘‘In order to determine whether eligible entities re-
ceiving subgrants under this subtitle meet performance 
benchmarks described in section 678(f)(1), administrative 
standards, financial management requirements, and other 
requirements under this subtitle, the State shall conduct 
the following reviews of eligible entities: 
‘‘(1) A full onsite review of each eligible entity 
at least once during each 3-year period. 
‘‘(2) An onsite review of each newly designated 
eligible entity immediately after the completion of 
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the first year in which such entity receives funds 
through the community services block grant program 
under this subtitle. 
‘‘(3) Followup reviews, including onsite reviews 
scheduled in a corrective action plan (including re-
turn visits), within a calendar quarter for eligible en-
tities with programs, projects, or services that fail to 
meet the State’s performance criteria, standards, fi-
nancial management requirements, and other signifi-
cant requirements established under this subtitle. 
‘‘(4) Other reviews as appropriate, including re-
views of eligible entities with programs, projects, and 
services that have had other Federal, State, or local 
grants (other than assistance provided under this 
subtitle) terminated for cause. 
‘‘SEC. 684. EVALUATIONS; CORRECTIVE ACTION; WITH-
HOLDING, REDUCTION, OR ELIMINATION OF 
FUNDING. 
‘‘(a) EVALUATIONS
OF
STATES
BY
THE
SEC-
RETARY.— 
‘‘(1) IN GENERAL.—The Secretary shall con-
duct, in not fewer than 1⁄3 of the States in each fis-
cal year, evaluations (including investigations) of 
State compliance with this subtitle, including re-
quirements relating to the use of funds received 
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under this subtitle, and especially with respect to 
compliance with the requirements of State plans 
submitted under section 678(b) and the uniform ad-
ministrative requirements, cost principles, and audit 
requirements described in section 674(c) as applied 
to funds received under this subtitle, including, but 
not limited to, advance payment of such funds to eli-
gible entities, unless otherwise authorized by the 
Uniform Guidance. 
‘‘(2) REPORT TO STATES.—The Secretary shall 
submit, to each State evaluated, a report con-
taining— 
‘‘(A) the results of such evaluation; and 
‘‘(B)(i) recommendations for improvements 
designed to enhance the benefit and impact of 
the activities carried out with such funds; and 
‘‘(ii) in the event a serious deficiency is 
found regarding a State’s compliance with this 
subtitle, including requirements relating to the 
use of funds received under this subtitle, a pro-
posed corrective action plan. 
‘‘(3) STATE
RESPONSE.—Not later than 45 
days after receiving a report under paragraph (2)— 
‘‘(A) a State that received recommenda-
tions under paragraph (2)(B)(i) shall submit to 
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the Secretary a plan of action in response to 
the recommendations; and 
‘‘(B) a State that received a proposed cor-
rective action plan under paragraph (2)(B)(ii) 
shall agree to implement the corrective action 
plan proposed by the Secretary or propose to 
the Secretary a different corrective action plan, 
developed by the State in a timely manner that 
the State will implement upon approval by the 
Secretary. 
‘‘(4) REPORT
TO
CONGRESS.—The Secretary 
shall submit the results of the evaluations annually, 
as part of the report submitted by the Secretary in 
accordance with section 686(b)(2). 
‘‘(5) ENFORCEMENT.— 
‘‘(A) WITHHOLDING OF FUNDING.—If the 
Secretary determines under the procedures set 
forth in this subsection that a State fails to 
meet the requirements of this subtitle, the Sec-
retary may withhold all or a portion of the 
amount of funding that may be used for admin-
istrative expenses, as described in section 
679(b)(2)(A), and prohibit the State from using 
other funds awarded under this subtitle to carry 
out 
the 
activities 
described 
in 
section 
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679(b)(2)(B), until the Secretary determines 
that the State has complied with the require-
ments of paragraph (3) and section 685(b). 
‘‘(B) REDUCTION
OR
ELIMINATION
OF 
FUNDING.—If the Secretary determines, in a 
final decision on the basis of an evaluation con-
ducted under this section, that a State fails to 
meet the requirements of this subsection, the 
Secretary may, after providing adequate notice 
and an opportunity for a hearing, initiate pro-
ceedings to reduce or eliminate the amount of 
funding apportioned and allocated to the State 
as described in section 675 or 676, as applica-
ble (and, if necessary, de-obligate such fund-
ing). To the extent that all or a portion of the 
amount of funding that may be used for admin-
istrative expenses, as described in section 
679(b)(2)(A), is reduced or eliminated under 
this paragraph, the Secretary is authorized to 
prohibit the State from using other funds 
awarded under this subtitle to carry out the ac-
tivities described in section 679(b)(2)(B), unless 
the State corrects the failure to meet the re-
quirements of this subsection. 
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‘‘(C) DIRECT
AWARDS
TO
OTHER
ENTI-
TIES.— 
‘‘(i) REDUCTION OR ELIMINATION OF 
STATE FUNDING; STATE FAILURE TO PAR-
TICIPATE.—If the Secretary reduces or 
eliminates funding to a State under sub-
paragraph (B) or, if, for a particular fiscal 
year, a State fails to participate in the 
block grant program established by this 
subtitle by failing to submit a plan to the 
Secretary, submitting a plan that does not 
meet the Secretary’s requirements, other-
wise electing not to receive funding under 
this subtitle, or failing to obligate or make 
available funds to any eligible entities for 
that year as required by section 679(a)(2), 
the Secretary shall award funding directly, 
in either the amount by which funding to 
the State was reduced or eliminated (in the 
case of the Secretary’s reduction or elimi-
nation of such funding under subpara-
graph (B)) or in the amount the State 
would have received had it participated in 
the block grant program established under 
this subtitle (in the case of a State’s fail-
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ure to participate as described in this sub-
paragraph), as provided under subpara-
graphs (C)(ii) and (C)(iii) below. 
‘‘(ii) DIRECT FUNDING TO ELIGIBLE 
ENTITIES.—In the event funding specified 
in section 679(a)(1)(B) is reduced, elimi-
nated, or withheld due to the Secretary’s 
reduction or elimination of funding under 
subparagraph (B) or to the State’s failure 
(as described in subparagraph (C)(i) 
above) to participate in the block grant 
program established by this subtitle, the 
Secretary shall award financial assistance 
in the amount of such reduced, eliminated, 
or withheld funding directly (by grant or 
cooperative agreement) to affected eligible 
entities (provided that any such entity has 
not had its funding under this subtitle 
eliminated or its designation as an eligible 
entity terminated by the State in accord-
ance with subsections (b) and (c) of section 
684) to carry out the activities described in 
section 679(c); in awarding such funding, 
the Secretary shall ensure that each such 
affected eligible entity receives the same 
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proportionate share of funding under sec-
tion 679(a)(1)(B) that it received in the 
prior fiscal year. 
‘‘(iii) STATEWIDE
FUNDS.—In the 
event funding specified in section 679(b) is 
reduced, eliminated, or withheld due to the 
Secretary’s reduction or elimination of 
funding under subparagraph (B) or to the 
State’s failure to participate (as described 
in subparagraph (C)(i) above) in the block 
grant program established by this subtitle, 
the Secretary shall award amounts equal 
to the amounts of such reduced, elimi-
nated, or withheld funds directly by grant 
or cooperative agreement to community 
services network organizations in the State 
(other than the State itself) for the pur-
poses specified in section 679(b)(1). 
‘‘(iv) REDUCTION.—In the case of di-
rect funding as provided in this subpara-
graph (C), the Secretary shall reduce fund-
ing the State would otherwise have re-
ceived under section 675 or 676 (and, if 
necessary, de-obligate such funding) for 
the appropriate fiscal year by an amount 
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equal to the financial assistance provided 
directly by the Secretary to such eligible 
entities and community services network 
organizations. 
‘‘(6) TRAINING AND TECHNICAL ASSISTANCE.— 
The Secretary, through the Department’s own em-
ployees or contractors (rather than under grants, 
contracts, or cooperative agreements issued under 
section 682), shall provide training and technical as-
sistance to States with respect to the development or 
implementation of the States’ corrective action 
plans. 
‘‘(7) PROHIBITIONS.—Nothing in this Act shall 
be construed to permit the Secretary (through regu-
lation, guidance, grant criteria, or otherwise) to ex-
pand the authority of the Secretary beyond that ex-
pressly provided to the Secretary in this Act. 
‘‘(b) DETERMINATION OF LOCAL AGENCY FAILURE 
TO COMPLY.— 
‘‘(1) CORRECTIVE
ACTION
BY
LOCAL
AGEN-
CIES.—If the State determines, on the basis of a re-
view pursuant to section 683 or section 685, that 
there is a serious deficiency regarding an eligible en-
tity’s compliance with this subtitle, the State shall 
inform the entity of the serious deficiencies that 
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shall be corrected and provide technical assistance 
for the corrective action. 
‘‘(2) LOCAL CORRECTIVE ACTION PLANS.—An 
eligible entity that is found to have a serious defi-
ciency under paragraph (1) shall develop, in a timely 
manner, a corrective action plan that shall be sub-
ject to the approval of the State, and that shall 
specify— 
‘‘(A) the deficiencies to be corrected; 
‘‘(B) the actions to be taken to correct 
such deficiencies; and 
‘‘(C) the timetable for accomplishment of 
the corrective actions specified. 
‘‘(3) FINAL
DECISION.—If the State deter-
mines, on the basis of a final decision in a review 
conducted under section 683, that an eligible entity 
fails to comply with the terms of a corrective action 
plan under paragraph (2) relating to correction of a 
serious deficiency for the eligible entity, the State 
may, after providing adequate notice and an oppor-
tunity for a hearing, initiate proceedings to withhold, 
reduce, or eliminate the funding provided under sec-
tion 679(a)(1)(B) to the eligible entity (including, in 
the case of elimination of funding, terminating the 
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designation under this subtitle of the eligible entity) 
unless the entity corrects the serious deficiency. 
‘‘(c) REVIEW.— 
‘‘(1) IN GENERAL.—A State’s decision to with-
hold, reduce, or eliminate funding, or to terminate 
the designation of an eligible entity (or eligible enti-
ties, as applicable) may be reviewed by the Sec-
retary. Upon request by a community services net-
work organization, the Secretary shall review such a 
determination. The review shall be completed not 
later than 60 days after the Secretary receives from 
the State all necessary documentation relating to the 
determination except as provided in paragraph (2). 
‘‘(2) FAILURE TO PROVIDE DOCUMENTATION.— 
If the State fails to provide such documentation 
within 30 days after the Secretary’s request, the 
State may not expend funds for the purposes de-
scribed in section 679(b)(2) until the State provides 
such documentation. The Secretary shall respond to 
the State with a decision not later than 30 days 
after receiving the documentation. 
‘‘(d) DIRECT ASSISTANCE.—Whenever the Secretary 
determines that a State has violated the State plan de-
scribed in section 678(b) (including, but not limited to, 
the assurance described in section 678(b)(6)) and the 
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State has withheld, reduced, or eliminated the funding 
provided under section 679(a) to any eligible entity or en-
tities or terminated the eligible entity designation of any 
eligible entity or entities prior to the completion of the 
State proceedings described in section 678(b)(6) (includ-
ing, where applicable, the proceedings required by sub-
section (b) of this section 684) and the Secretary’s review 
as required by subsection (c) of this section 684, the Sec-
retary shall provide financial assistance under this subtitle 
to the affected eligible entity or entities directly until the 
violation is corrected by the State. In such a case, the Sec-
retary shall reduce funding the State would otherwise have 
received under section 675 or 676 (and, if necessary, de- 
obligate such funding) for the appropriate fiscal year by 
an amount equal to the financial assistance provided di-
rectly by the Secretary to such eligible entity or entities. 
‘‘SEC. 685. STATE AND LOCAL FISCAL CONTROLS, AUDITS, 
AND WITHHOLDING. 
‘‘(a) FISCAL CONTROLS, PROCEDURES, AUDITS, AND 
INSPECTIONS.— 
‘‘(1) IN GENERAL.—A State that receives funds 
under this subtitle shall— 
‘‘(A) establish fiscal control and fund ac-
counting procedures necessary to assure the 
proper disbursal of, and accounting for, Federal 
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funds paid to the State under this subtitle, in-
cluding procedures for monitoring the funds 
provided under this subtitle; 
‘‘(B) in accordance with paragraphs (2) 
and (3), prepare, not less than once each year, 
an audit of the expenditures of the State of 
amounts received under this subtitle; and 
‘‘(C) make appropriate books, documents, 
papers, and records available to the Secretary 
and the Comptroller General of the United 
States, or any of their duly authorized rep-
resentatives, for examination, copying, or me-
chanical reproduction on or off the premises of 
the appropriate entity upon a reasonable re-
quest for the items. 
‘‘(2) INDEPENDENT ENTITY.—Subject to para-
graph (3), each audit required by paragraph (1)(B) 
shall be conducted by an entity independent of any 
agency administering activities or services under this 
subtitle and shall be conducted in accordance with 
generally accepted accounting principles. 
‘‘(3) SINGLE AUDIT REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Any audit under this 
subsection shall be conducted in the manner 
and to the extent provided in chapter 75 of title 
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31, United States Code (commonly known as 
the ‘Single Audit Act Amendments of 1984’) 
except in the event a serious financial deficiency 
is identified. 
‘‘(B) SERIOUS FINANCIAL DEFICIENCY.— 
In the event that such a deficiency is identified, 
the Secretary shall order— 
‘‘(i) an audit conducted as described 
in subparagraph (A); or 
‘‘(ii) an audit of each of the accounts 
involved, in accordance with paragraphs 
(2) and (4). 
‘‘(4) SUBMISSION OF COPIES.—Not later than 
30 days after the completion of each such audit in 
a State, the chief executive officer of the State shall 
submit copies of such audit, at no charge, to any eli-
gible entity that was the subject of the audit, to the 
legislature of the State, and to the Secretary. 
‘‘(5) REPAYMENTS.—If the Secretary, after re-
view of the audit, finds that a State has not ex-
pended an amount of funds in accordance with this 
subtitle, the State shall immediately use an amount 
of State funds equal to the amount of improperly ex-
pended funds for the original purposes for which the 
grant funds were intended. 
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‘‘(6) RESPONSE
TO
COMPLAINTS.—The Sec-
retary shall respond in an expeditious and speedy 
manner to complaints of a substantial or serious na-
ture that a State has failed to use grant funds re-
ceived under section 675 or 676 or to carry out 
State activities under this subtitle in accordance 
with the provisions of this subtitle. 
‘‘(7) INVESTIGATIONS.—Whenever the Sec-
retary determines that there is a pattern of com-
plaints regarding failures described in paragraph (6) 
or a complaint of a serious deficiency concerning any 
State, the Secretary shall conduct an investigation of 
the use of the funds received under this subtitle by 
such State in order to ensure compliance with the 
provisions of this subtitle. 
‘‘(b) STATE FUNDS.— 
‘‘(1) CORRECTIVE ACTION PLAN.—In the event 
the Secretary withholds funding pursuant to section 
684(a)(5)(A), the Secretary shall subsequently make 
the withheld funding available to the State not later 
than 90 days after the date of correction of the seri-
ous deficiency specified in the corrective action plan 
described in section 684(a)(2)(B)(ii), provided that 
the State complies with the corrective action plan 
approved by the Secretary and corrects the serious 
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deficiency by the date specified in such corrective ac-
tion plan. 
‘‘(2) APPLICATION.—For purposes of para-
graph (1), failures described in subsection (a)(6) 
shall be considered to be serious deficiencies. 
‘‘SEC. 686. ACCOUNTABILITY AND REPORTING REQUIRE-
MENTS. 
‘‘(a) STATE ACCOUNTABILITY AND REPORTING RE-
QUIREMENTS.— 
‘‘(1) PERFORMANCE MEASUREMENT.— 
‘‘(A) IN GENERAL.—By October 1, 2019, 
each State that receives funds under this sub-
title shall participate, and shall ensure that all 
eligible entities in the State participate, in a 
performance measurement system that the Sec-
retary is satisfied meets the requirements of 
paragraph (8) of section 678(b). 
‘‘(B) LOCAL ORGANIZATIONS.—The State 
may elect to have local organizations that are 
subgrantees of the eligible entities under this 
subtitle participate in the performance measure-
ment system. If the State makes that election, 
references in this section to eligible entities 
shall be considered to include the local organi-
zations. 
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‘‘(C) ELIGIBLE ENTITY REPORTS.—Eligi-
ble entities shall provide the results measured 
by their performance measurement system, re-
ports on the achievement of their annual per-
formance benchmarks, and such other reports 
as the State may require. 
‘‘(2) ANNUAL REPORT.—Each State receiving 
funds under this subtitle shall annually prepare, and 
submit to the Secretary by March 31 of each year, 
a report on the performance of the State and eligible 
entities in the State, including achievement with re-
spect to the State lead agency performance bench-
marks and the local performance benchmarks re-
spectively and to other performance measurements 
that were used by community service network orga-
nizations in the State for the prior year. Each State 
shall also include in the report— 
‘‘(A) an accounting of the expenditure of 
funds received by the State through the com-
munity services block grant program, including 
an accounting of funds spent on administrative 
or indirect costs by the State and the eligible 
entities and funds spent by the eligible entities 
on local programs, projects, and services; 
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‘‘(B) information on the number and char-
acteristics of participants served under this sub-
title in the State, based on data collected from 
the eligible entities; 
‘‘(C) a summary describing the training 
and technical assistance offered by the State 
under subparagraph (B) of section 679(b)(1) 
during the year covered by the report; 
‘‘(D) the State’s management performance 
benchmark results; 
‘‘(E) information on the total budget and 
activities of the eligible entities receiving sub-
grants from the State under this subtitle, in-
cluding local and private resources available for 
a purpose described in section 672; 
‘‘(F) a report on the Community Action 
Innovations Program in the State, including a 
description of training and technical assistance 
provided by the State, the rationale for projects 
that received support, a description of funded 
activities and their results, and a summary of 
ways in which the State has expanded use of 
evidence-based practice or contributed to build-
ing the evidence base designed to reduce pov-
erty conditions; and 
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‘‘(G) a report on the manner in which the 
State and eligible entities and other recipients 
of funds under this subtitle have implemented 
results-oriented management practices based on 
their performance measurement systems. 
‘‘(b) REPORTING REQUIREMENTS.— 
‘‘(1) CONTENTS.—Not later than September 30 
of each fiscal year, the Secretary shall, directly or by 
grant or contract, prepare a report including— 
‘‘(A) the information included in the State 
annual reports under subsection (a)(2) for the 
preceding fiscal year; 
‘‘(B) a report on the performance of the 
Department in the preceding fiscal year regard-
ing the performance benchmarks established 
under section 681(c); and 
‘‘(C) a description of the training and tech-
nical assistance activities funded by the Sec-
retary under section 682 and the results of 
those activities. 
‘‘(2) SUBMISSION.—The Secretary shall submit 
to the Committee on Education and Labor of the 
House of Representatives and to the Committee on 
Health, Education, Labor, and Pensions of the Sen-
ate the report described in paragraph (1) and any 
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recommendations the Secretary may have with re-
spect to such report. 
‘‘(3) ELECTRONIC DATA SYSTEM FOR REPORTS 
TO
STATES
AND
ELIGIBLE
ENTITIES.—The Sec-
retary, through the Department’s own employees or 
contractors (rather than under grants, contracts, or 
cooperative agreements issued under section 682), 
shall provide technical assistance, including support 
for the development and maintenance of an elec-
tronic data system for the reports under this section, 
to the States and eligible entities to enhance the 
quality and timeliness of reports submitted under 
this subtitle. The system shall be coordinated and 
consistent with the data systems established for 
other programs of the Department that are managed 
by eligible entities, including all programs of the Ad-
ministration for Children and Families or successor 
administrative units in which the office is located. 
‘‘SEC. 687. LIMITATIONS ON USE OF FUNDS. 
‘‘(a) CONSTRUCTION OF FACILITIES.— 
‘‘(1) LIMITATIONS.—Except as provided in 
paragraph (2) and in section 679(b)(1)(C), grants or 
subgrants made under this subtitle may not be used 
by the State, or by any other person with which the 
State makes arrangements to carry out a purpose 
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described in section 672, for the purchase or im-
provement of land, or the purchase, construction or 
permanent improvement of any building or other fa-
cility. 
‘‘(2) WAIVER.—The Secretary may waive the 
limitation contained in paragraph (1) upon a State 
request for such a waiver if the Secretary finds 
that— 
‘‘(A) the request describes extraordinary 
circumstances to justify the purchase or im-
provement of land, or the purchase, construc-
tion, or permanent improvement of any building 
or other facilities; and 
‘‘(B) permitting the waiver will contribute 
to the ability of the State and eligible entities 
to carry out a purpose described in section 672 
at substantially reduced costs. 
‘‘(b) POLITICAL ACTIVITIES.— 
‘‘(1) TREATMENT AS A STATE OR LOCAL AGEN-
CY.—For purposes of chapter 15 of title 5, United 
States Code, any entity that assumes responsibility 
for planning, developing, and coordinating activities 
under this subtitle and receives assistance under this 
subtitle shall be deemed to be a State or local agen-
cy. For purposes of paragraphs (1) and (2) of sec-
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tion 1502(a) of such title, any entity receiving as-
sistance under this subtitle shall be deemed to be a 
State or local agency. 
‘‘(2) PROHIBITIONS.—An entity carrying out a 
program, project, or service assisted under this sub-
title, and any individual employed by, or assigned to 
or in, such a program, project, or service (during the 
hours in which the individual is working on behalf 
of the program, project, or service) shall not engage 
in— 
‘‘(A) any partisan or nonpartisan political 
activity or any political activity associated with 
a candidate, or contending faction or group, in 
an election for public or party office; or 
‘‘(B) any activity to provide voters or pro-
spective voters with transportation to the polls 
or similar assistance in connection with any 
such election. 
‘‘(3) REGISTRATION.—None of the funds appro-
priated to carry out this subtitle may be used to con-
duct voter registration activities. 
‘‘(c) NONDISCRIMINATION.— 
‘‘(1) IN
GENERAL.—No person shall, on the 
basis of race, color, national origin, or sex, be ex-
cluded from participation in, be denied the benefits 
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of, or be subjected to discrimination under, any pro-
gram, project, or service funded in whole or in part 
with funds made available under this subtitle. Any 
prohibition against discrimination on the basis of 
age under the Age Discrimination Act of 1975 (42 
U.S.C. 6101 et seq.) or with respect to an otherwise 
qualified individual with a disability as provided in 
section 504 of the Rehabilitation Act of 1973 (29 
U.S.C. 794), or title II of the Americans with Dis-
abilities Act of 1990 (42 U.S.C. 12131 et seq.), shall 
also apply to any such program, project, or service. 
‘‘(2) ACTION
OF
SECRETARY.—Whenever the 
Secretary determines that a State that has received 
a payment under this subtitle has failed to comply 
with paragraph (1) or an applicable regulation, the 
Secretary shall notify the chief executive officer of 
the State and shall request that the officer secure 
compliance. If within a reasonable period of time, 
not to exceed 60 days, the chief executive officer 
fails or refuses to secure compliance, the Secretary 
is authorized to— 
‘‘(A) refer the matter to the Attorney Gen-
eral with a recommendation that an appropriate 
civil action be instituted; 
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‘‘(B) exercise the powers and functions 
provided by title VI of the Civil Rights Act of 
1964 (42 U.S.C. 2000d et seq.), the Age Dis-
crimination Act of 1975 (42 U.S.C. 6101 et 
seq.), section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794), or title II of the Ameri-
cans with Disabilities Act of 1990 (42 U.S.C. 
12131 et seq.), as may be applicable; or 
‘‘(C) take such other action as may be pro-
vided by law. 
‘‘(3) ACTION OF ATTORNEY GENERAL.—When a 
matter is referred to the Attorney General pursuant 
to paragraph (2), or whenever the Attorney General 
has reason to believe that the State is engaged in a 
pattern or practice of discrimination in violation of 
the provisions of this subsection, the Attorney Gen-
eral may bring a civil action in any appropriate 
United States district court for such relief as may 
be appropriate, including injunctive relief. 
‘‘SEC. 688. DRUG AND CHILD SUPPORT SERVICES AND RE-
FERRALS. 
‘‘(a) DRUG TESTING AND REHABILITATION.— 
‘‘(1) IN
GENERAL.—Nothing in this subtitle 
shall be construed to prohibit a State from testing 
participants in programs, projects, or services car-
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ried out or provided under this subtitle for controlled 
substances. A State that conducts such testing shall 
inform the participants who test positive for any of 
such substances about the availability of treatment 
or rehabilitation services and refer such participants 
for appropriate treatment or rehabilitation services. 
‘‘(2) ADMINISTRATIVE EXPENSES.—Any funds 
provided under this subtitle expended for such test-
ing shall be considered to be expended for adminis-
trative expenses and shall be subject to the limita-
tion specified in section 679(b)(2). 
‘‘(3) DEFINITION.—In this subsection, the term 
‘controlled substance’ has the meaning given the 
term in section 102 of the Controlled Substances 
Act (21 U.S.C. 802). 
‘‘(b) CHILD SUPPORT SERVICES AND REFERRALS.— 
During each fiscal year for which an eligible entity receives 
a subgrant under section 679(a), such entity shall— 
‘‘(1) inform custodial parents in single-parent 
families that participate in programs, projects, or 
services carried out or provided under this subtitle 
about the availability of child support services; and 
‘‘(2) refer eligible parents to the child support 
offices of State and local governments. 
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‘‘SEC. 689. REGULATIONS. 
‘‘(a) REGULATIONS.—The Secretary shall promulgate 
regulations implementing this subtitle, by administrative 
hearing open to the public, including regulations regard-
ing— 
‘‘(1) State plans and community action pro-
gram plans, including the form and information re-
quired for State plans submitted to the Secretary 
and community action program plans submitted to 
States; 
‘‘(2) State monitoring of eligible entities; and 
‘‘(3) reports to the Secretary described in sec-
tion 686. 
‘‘(b) GUIDANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall issue 
guidance regarding State and local performance 
measurement systems, including State management 
performance benchmarks and comprehensive com-
munity needs assessments. 
‘‘(2) 
STATE
MANAGEMENT
PERFORMANCE 
BENCHMARKS.—The Secretary, in consultation with 
community services network organizations, shall de-
velop State management performance benchmarks, 
which shall include indicators about— 
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‘‘(A) a State’s timely obligation and dis-
tribution of Federal funds, and effective State 
oversight of Federal funds; 
‘‘(B) a State’s compliance with the uni-
form administrative requirements, cost prin-
ciples, and audit requirements described in sec-
tion 674(c); 
‘‘(C) a State’s effective management of the 
activities funded under this subtitle; and 
‘‘(D) the results of activities funded by the 
State under section 679(b). 
‘‘(3) COMPREHENSIVE ANALYSIS OF POVERTY 
CONDITIONS.—The Secretary shall provide guidance 
(including models) for comprehensive community 
needs 
assessments 
described 
in 
section 
678(a)(2)(C)(i). The guidance shall include methods 
for preparing an analysis of all poverty conditions 
affecting a community and of local and regional as-
sets for alleviating such conditions. 
‘‘SEC. 690. DISCRETIONARY COMMUNITY PROGRAMS. 
‘‘(a) GRANTS, CONTRACTS, ARRANGEMENTS, LOANS, 
AND GUARANTEES.— 
‘‘(1) IN GENERAL.—The Secretary shall, from 
funds appropriated under section 691(b), make 
grants, loans, or guarantees to States and public 
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agencies and private, nonprofit organizations, or 
enter into contracts or jointly financed cooperative 
arrangements with States and public agencies and 
private, nonprofit organizations (and for-profit orga-
nizations, to the extent specified in paragraph 
(2)(E)) for each of the objectives described in para-
graphs (2) through (4). 
‘‘(2) COMMUNITY ECONOMIC DEVELOPMENT.— 
‘‘(A) ECONOMIC
DEVELOPMENT
ACTIVI-
TIES.—The Secretary shall make grants de-
scribed in paragraph (1) on a competitive basis 
to private, nonprofit organizations that are 
community development corporations to provide 
technical and financial assistance for economic 
development activities designed to address the 
economic needs of low-income individuals and 
families by creating employment and business 
development opportunities. 
‘‘(B) 
CONSULTATION.—The 
Secretary 
shall exercise the authority provided under sub-
paragraph (A) after consultation with other rel-
evant Federal officials. 
‘‘(C) GOVERNING BOARDS.—For a commu-
nity development corporation to receive funds to 
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carry out this paragraph, the corporation shall 
be governed by a board that shall— 
‘‘(i) consist of residents of the com-
munity and business and civic leaders; and 
‘‘(ii) have as a principal purpose plan-
ning, developing, or managing low-income 
housing 
or 
community 
development 
projects. 
‘‘(D) 
GEOGRAPHIC
DISTRIBUTION.—In 
making grants to carry out this paragraph, the 
Secretary shall take into consideration the geo-
graphic distribution of funding among States 
and the relative proportion of funding among 
rural and urban areas. 
‘‘(E) RESERVATION.—Of the amounts 
made available to carry out this paragraph, the 
Secretary may reserve not more than 1 percent 
for each fiscal year to make grants to private, 
nonprofit organizations or to enter into con-
tracts with private, nonprofit, or for-profit orga-
nizations to provide technical assistance to aid 
community development corporations in devel-
oping or implementing activities funded to carry 
out this paragraph and to evaluate activities 
funded to carry out this paragraph. 
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‘‘(3) RURAL
COMMUNITY
DEVELOPMENT
AC-
TIVITIES.—The Secretary shall provide the assist-
ance described in paragraph (1) for rural community 
development activities, which shall include pro-
viding— 
‘‘(A) grants to private, nonprofit corpora-
tions to enable the corporations to provide as-
sistance concerning home repair to rural low-in-
come families and concerning planning and de-
veloping low-income rural rental housing units; 
and 
‘‘(B) grants to multistate, regional, pri-
vate, nonprofit organizations to enable the orga-
nizations to provide training and technical as-
sistance to small, rural communities concerning 
meeting their community facility needs. 
‘‘(4) 
NEIGHBORHOOD
INNOVATION 
PROJECTS.—The Secretary shall provide the assist-
ance described in paragraph (1) for neighborhood in-
novation projects, which— 
‘‘(A) shall include providing grants to 
neighborhood-based, private, nonprofit organi-
zations to test or assist in the development of 
new approaches or methods that will assist in 
furthering the purposes of this subtitle, includ-
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ing two-generation approaches that create op-
portunities for, and address the needs of, par-
ents and children together; and 
‘‘(B) may include providing assistance for 
projects that are designed to serve low-income 
individuals and families who are not being ef-
fectively served by other programs. 
‘‘(b) EVALUATION.—The Secretary shall require all 
activities receiving assistance under this section to be eval-
uated for their effectiveness. Funding for such evaluations 
shall be provided as a stated percentage of the assistance 
or through a separate grant awarded by the Secretary spe-
cifically for the purpose of evaluation of a particular activ-
ity or group of activities. 
‘‘(c) ANNUAL REPORT.—The Secretary shall compile 
an annual report containing a summary of the evaluations 
required under subsection (b) and a listing of all activities 
assisted under this section. The Secretary shall annually 
submit the report to the chairperson of the Committee on 
Education and Labor of the House of Representatives and 
the chairperson of the Committee on Health, Education, 
Labor, and Pensions of the Senate. 
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‘‘SEC. 690A. COMMUNITY ACTION OPIOID RESPONSE GRANT 
PROGRAM. 
‘‘(a) AUTHORIZATION
OF GRANT PROGRAM.—The 
Secretary shall establish a grant program to enable Com-
munity Action Agencies to respond to the needs of commu-
nities and low-income families and individuals in crisis re-
sulting from the opioid addiction epidemic. 
‘‘(b) GOALS.—The goals of the grant program under 
this section are to expand and support effective commu-
nity efforts to identify and respond to causes and con-
sequences of opioid misuse and addiction experienced by 
low-income individuals, families, and communities. 
‘‘(c) ELIGIBILITY.—Any Community Action Agency 
is eligible to apply for a grant under this section by sub-
mitting an application in such form and manner as speci-
fied by the Secretary, in accordance with subsection 
(g)(1). 
‘‘(d) ALLOWABLE USES OF FUNDS.—A grant award-
ed to a Community Action Agency under this section may 
be used to support one or more of the following activities, 
which may be conducted in coordination or partnership 
with other community organizations: 
‘‘(1) Enhanced public education to improve in-
dividual and community awareness, with respect to 
opioid misuse or addiction, including for children 
and youth. 
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‘‘(2) Outreach and identification of individuals 
at risk of or experiencing opioid misuse or addiction, 
and referral of such individuals to appropriate treat-
ment, recovery, or other resources in the community. 
‘‘(3) Direct services to prevent, treat, or recover 
from opioid addiction. 
‘‘(4) Services to stabilize and/or improve the 
education, employment, housing, transportation, or 
other needs of addicted or at-risk individuals and 
their family members. 
‘‘(5) Services to address and mitigate the im-
pact of opioid addiction on children in the household. 
‘‘(6) Support and assistance to children, and 
their caregivers, who are in foster care or at-risk of 
placement in foster care because of the opioid addic-
tion of their parents. 
‘‘(7) Development of partnerships with entities 
such as local health care providers, substance abuse 
treatment organizations, schools, child welfare agen-
cies, social service organizations, police departments, 
prosecutors, courts, prisons, local governments, busi-
nesses, and religious institutions, in order to coordi-
nate or expand resources available to addicted or at- 
risk individuals and their family members. 
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‘‘(8) Training for Community Action Agency 
personnel in issues related to opioid addiction, in-
cluding early identification of at-risk individuals and 
administration of overdose prevention medications. 
‘‘(e) GRANT FUNDING LIMITATIONS.— 
‘‘(1) AMOUNT
OF
GRANT.—A grant awarded 
under this section shall be in an amount that is not 
more than $1,000,000 per year and not less than 
$50,000 per year. 
‘‘(2) DURATION.—Grant funds awarded under 
this section shall remain available for expenditure by 
the grantee for up to 36 months after the date of 
award unless a longer period of availability is ap-
proved by the Secretary based on outcome data or 
extenuating circumstances. 
‘‘(f) REPORTING.—Each Community Action Agency 
receiving a grant under this section shall submit an annual 
report to the Secretary detailing goals, interventions, out-
comes, and expenditures, with respect to the program of 
such agency that is funded by such grant, and make each 
such report so submitted by the Community Action Agen-
cy available on the public website of the Community Ac-
tion Agency. The Secretary shall make each such report 
public on the public website of the Department of Health 
and Human Services. For each year of the grant program 
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under this section, the Secretary shall compile all of such 
reports so submitted to the Secretary for such year and 
submit to Congress the compilation with an annual sum-
mary. 
‘‘(g) EXPEDITED GRANT APPLICATION, REVIEW, 
AND AWARD PROCESS.— 
‘‘(1) APPLICATION PROCESS AND CRITERIA.— 
Not later than 60 days after the effective date of 
this section, the Secretary shall publish in the Fed-
eral Register the application process and criteria for 
grants under this section. Such criteria shall require 
each application submitted for a grant under this 
section to include— 
‘‘(A) a description of the objectives of the 
program and activities to be funded by the 
grant and how the grant will be used to achieve 
these objectives, including specific activities and 
services to be conducted, and specific popu-
lations or areas to be served (including targeted 
subgroups such as incarcerated or homeless in-
dividuals); 
‘‘(B) a description of innovative ap-
proaches to be used and evidence of likely suc-
cess; 
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