248
the Balanced Budget and Emergency Def-
icit Control Act of 1985) to another pro-
gram. 
(C) 10 STATE LIMITATION.—The Director of 
the Office of Management and Budget shall es-
tablish a procedure for ensuring that not more 
than 10 States (including any portion of a 
State) conduct a demonstration project under 
this subsection. 
(D) 
AGREEMENT
OF
SECRETARY
RE-
QUIRED.—
(i) IN GENERAL.—An applicant may 
not conduct a demonstration project under 
this subsection unless the Secretary, with re-
spect to each qualified program proposed to 
be included in the project, has approved the 
application to conduct the project. 
(ii) AGREEMENT
WITH
RESPECT
TO 
FUNDING
AND
IMPLEMENTATION.—Before 
approving an application to conduct a dem-
onstration project under this subsection, the 
Secretary shall have in place an agreement 
with the applicant with respect to the pay-
ment of funds and responsibilities required 
of the Secretary with respect to the project.
249
(E) COST-NEUTRALITY REQUIREMENT.—
(i) GENERAL RULE.—Notwithstanding 
any other provision of law (except as pro-
vided in clause (ii)), the total of the 
amounts that may be paid by the Federal 
Government for a fiscal year with respect to 
the programs in the State in which an enti-
ty conducting a demonstration project 
under this subsection is located that are af-
fected by the project shall not exceed the es-
timated total amount that the Federal Gov-
ernment would have paid for the fiscal year 
with respect to the programs if the project 
had not been conducted, as determined by 
the Director of the Office of Management 
and Budget. 
(ii) SPECIAL RULE.—If an applicant 
submits to the Director of the Office of Man-
agement and Budget a request to apply the 
rules of this clause to the programs in the 
State in which the applicant is located that 
are affected by a demonstration project pro-
posed in an application submitted by the 
applicant pursuant to this section, during 
such period of not more than 5 consecutive
250
fiscal years in which the project is in effect, 
and the Director determines, on the basis of 
supporting information provided by the ap-
plicant, to grant the request, then, notwith-
standing any other provision of law, the 
total of the amounts that may be paid by 
the Federal Government for the period with 
respect to the programs shall not exceed the 
estimated total amount that the Federal 
Government would have paid for the period 
with respect to the programs if the project 
had not been conducted. 
(F) 90-DAY APPROVAL DEADLINE.—
(i) IN GENERAL.—If the Secretary re-
ceives an application to conduct a dem-
onstration project under this subsection and 
does not disapprove the application within 
90 days after the receipt, then, subject to the 
10 State limitation under paragraph (3)—
(I) the Secretary is deemed to 
have approved the application for such 
period as is requested in the applica-
tion, except to the extent inconsistent 
with paragraph (5); and
251
(II) any waiver requested in the 
application which applies to a quali-
fied program that is identified in the 
application and is administered by the 
Secretary is deemed to be granted, ex-
cept to the extent inconsistent with 
subparagraph (B) or (E) of this para-
graph. 
(ii) DEADLINE
EXTENDED
IF
ADDI-
TIONAL INFORMATION IS SOUGHT.—The 90-
day period referred to in clause (i) shall not 
include any period that begins with the date 
the Secretary requests the applicant to pro-
vide additional information with respect to 
the application and ends with the date the 
additional information is provided. 
(5) DURATION OF PROJECTS.—A demonstration 
project under this subsection may be approved for a 
term of not more than 5 years. 
(6) REPORTS TO CONGRESS.—
(A) REPORT ON DISPOSITION OF APPLICA-
TIONS.—Within 90 days after the date the Sec-
retary receives an application submitted pursu-
ant to this subsection, the Secretary shall submit 
to the Committee on Finance of the Senate and
252
the Committee on Ways and Means of the House 
of Representatives notice of the receipt, a de-
scription of the decision of the Secretary with re-
spect to the application, and the reasons for ap-
proving or disapproving the application. 
(B) REPORTS
ON
PROJECTS.—The Sec-
retary shall provide annually to Congress a re-
port concerning demonstration projects approved 
under this subsection, including—
(i) the projects approved for each ap-
plicant; 
(ii) the number of waivers granted 
under this subsection, and the specific statu-
tory provisions waived; 
(iii) how well each project for which a 
waiver is granted is improving or enhanc-
ing program achievement from the stand-
point of quality, cost-effectiveness, or both; 
(iv) how well each project for which a 
waiver is granted is meeting the perform-
ance objectives specified in paragraph 
(3)(C)(ii); 
(v) how each project for which a waiv-
er is granted is conforming with the cost-
253
neutrality 
requirements 
of 
paragraph 
(4)(E); and 
(vi) to the extent the Secretary deems 
appropriate, recommendations for modifica-
tion of programs based on outcomes of the 
projects. 
SEC. 115. STUDY BY THE CENSUS BUREAU. 
(a) IN GENERAL.—Section 414(a) (42 U.S.C. 614(a)) 
is amended to read as follows: 
‘‘(a) IN GENERAL.—The Bureau of the Census shall 
implement or enhance a longitudinal survey of program 
participation, developed in consultation with the Secretary 
and made available to interested parties, to allow for the 
assessment of the outcomes of continued welfare reform on 
the economic and child well-being of low-income families 
with children, including those who received assistance or 
services from a State program funded under this part, and, 
to the extent possible, shall provide State representative 
samples. The content of the survey should include such in-
formation as may be necessary to examine the issues of out-
of-wedlock childbearing, marriage, welfare dependency and 
compliance with work requirements, the beginning and end-
ing of spells of assistance, work, earnings and employment 
stability, and the well-being of children.’’.