IB 
Union Calendar No. 587 
115TH CONGRESS 
2D SESSION 
H. R. 5861 
[Report No. 115–754] 
To amend part A of title IV of the Social Security Act, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 17, 2018 
Mr. SMITH of Nebraska (for himself, Mr. BRADY of Texas, Mr. NUNES, Ms. 
JENKINS of Kansas, Mr. REED, Mr. RENACCI, Mrs. WALORSKI, Mr. 
LAHOOD, Mr. BISHOP of Michigan, Mr. RICE of South Carolina, Mr. 
SMITH of Missouri, Mr. HOLDING, Mr. BUCHANAN, Mr. MARCHANT, and 
Mr. KELLY of Pennsylvania) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
JUNE 13, 2018 
Additional sponsors: Mr. FERGUSON, Mr. ARRINGTON, Mr. SMUCKER, Mr. 
SAM JOHNSON of Texas, Mr. ALLEN, Mr. WENSTRUP, Mr. GAETZ, Mrs. 
HANDEL, Mr. KUSTOFF of Tennessee, Mr. JOHNSON of Louisiana, Mr. 
RUTHERFORD, Mr. ESTES of Kansas, Mr. BANKS of Indiana, Mr. MAR-
SHALL, Mrs. NOEM, Mr. LOUDERMILK, Mr. DUNN, Mr. CRAMER, Mr. 
MITCHELL, Mr. GIANFORTE, and Mr. ABRAHAM 
JUNE 13, 2018 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 17, 2018] 
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A BILL 
To amend part A of title IV of the Social Security Act, 
and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Jobs and Opportunity 
with Benefits and Services for Success Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents of this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. References. 
Sec. 4. Re-naming of program. 
Sec. 5. Helping more Americans enter and remain in the workforce. 
Sec. 6. Expecting universal engagement and case management. 
Sec. 7. Promoting accountability by measuring work outcomes. 
Sec. 8. Targeting funds to truly needy families. 
Sec. 9. Targeting funds to core purposes. 
Sec. 10. Strengthening program integrity by measuring improper payments. 
Sec. 11. Prohibition on State diversion of Federal funds to replace State spend-
ing. 
Sec. 12. Inclusion of poverty reduction as a program purpose. 
Sec. 13. Welfare for needs not weed. 
Sec. 14. Strengthening accountability through HHS approval of State plans. 
Sec. 15. Aligning and improving data reporting. 
Sec. 16. Technical corrections to data exchange standards to improve program co-
ordination. 
Sec. 17. Set-aside for economic downturns. 
Sec. 18. Definitions related to use of funds. 
Sec. 19. Elimination of obsolete provisions. 
Sec. 20. Effective date. 
SEC. 3. REFERENCES. 
Except as otherwise expressly provided, wherever in 
this Act an amendment or repeal is expressed in terms of 
an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or 
other provision of the Social Security Act. 
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SEC. 4. RE-NAMING OF PROGRAM. 
(a) IN GENERAL.—The heading for part A of title IV 
is amended to read as follows: 
‘‘PART A—JOBS AND OPPORTUNITY WITH 
BENEFITS AND SERVICES PROGRAM’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The heading for section 403(a)(2)(B) (42 
U.S.C. 603(a)(2)(B)) is amended by striking ‘‘TANF’’ 
and inserting ‘‘JOBS’’. 
(2) The heading for section 413(a) (42 U.S.C. 
613(a)) is amended by striking ‘‘TANF’’ and insert-
ing ‘‘JOBS’’. 
(3) The heading for section 471(e)(7)(B)(i) (42 
U.S.C. 671(e)(7)(B)(i)), as in effect pursuant to the 
amendment made by section 50711(a)(2) of division 
E of the Bipartisan Budget Act of 2018 (Public Law 
115–123), is amended by striking ‘‘TANF’’ and in-
serting ‘‘JOBS’’. 
SEC. 5. HELPING MORE AMERICANS ENTER AND REMAIN IN 
THE WORKFORCE. 
(a) FAMILY ASSISTANCE GRANTS.—Section 403(a)(1) 
(42 U.S.C. 603(a)(1)) is amended in each of subparagraphs 
(A) and (C) by striking ‘‘2017 and 2018’’ and inserting 
‘‘2019 through 2023’’. 
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(b) HEALTHY MARRIAGE PROMOTION AND RESPON-
SIBLE FATHERHOOD GRANTS.—Section 403(a)(2)(D) (42 
U.S.C. 603(a)(2)(D)) is amended— 
(1) by striking ‘‘2017 and 2018’’ and inserting 
‘‘2019 through 2023’’; and 
(2) by striking ‘‘for fiscal year 2017 or 2018’’. 
(c) TRIBAL FAMILY ASSISTANCE GRANTS.—Section 
412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by strik-
ing ‘‘2017 and 2018’’ and inserting ‘‘2019 through 2023’’. 
(d) IMPROVING ACCESS TO CHILD CARE TO SUPPORT 
WORK.—Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amend-
ed by striking ‘‘$2,917,000,000 for each of fiscal years 2017 
and 2018’’ and inserting ‘‘$3,525,000,000 for each of fiscal 
years 2019 through 2023’’. 
(e) 
GRANTS
TO
THE
TERRITORIES.—Section 
1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by striking 
‘‘2017 and 2018’’ and inserting ‘‘2019 through 2023’’. 
SEC. 6. EXPECTING UNIVERSAL ENGAGEMENT AND CASE 
MANAGEMENT. 
Section 408(b) (42 U.S.C. 608(b)) is amended to read 
as follows: 
‘‘(b) INDIVIDUAL OPPORTUNITY PLANS.— 
‘‘(1) ASSESSMENT.—The State agency respon-
sible for administering the State program funded 
under this part shall make an initial assessment of 
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the following for each work-eligible individual (as de-
fined in the regulations promulgated pursuant to sec-
tion 407(i)(1)(A)(i)): 
‘‘(A) The education obtained, skills, prior 
work experience, work readiness, and barriers to 
work of the individual. 
‘‘(B) The well-being of the children in the 
family of the individual and, where appropriate, 
activities or services (such as services offered by 
a program funded under section 511) to improve 
the well-being of the children. 
‘‘(2) CONTENTS OF PLANS.—On the basis of the 
assessment required by paragraph (1) of this sub-
section, the State agency, in consultation with the in-
dividual, shall develop an individual opportunity 
plan that— 
‘‘(A) includes a personal responsibility 
agreement in which the individual acknowledges 
receipt of publicly-funded benefits and responsi-
bility to comply with program requirements in 
order to receive the benefits; 
‘‘(B) sets forth the obligations of the indi-
vidual to participate in work activities (as de-
fined in section 407(d)), and the number of 
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hours per month for which the individual will so 
participate pursuant to section 407; 
‘‘(C) sets forth an employment goal and 
planned short-, intermediate-, and long-term ac-
tions to achieve the goal, and, in the case of an 
individual who has not attained 24 years of age 
and is in secondary school or the equivalent, the 
intermediate action may be completion of sec-
ondary school or the equivalent; 
‘‘(D) describes the job counseling and other 
services the State will provide to the individual 
to enable the individual to obtain and keep em-
ployment in the private sector; 
‘‘(E) may include referral to appropriate 
substance abuse or mental health treatment; and 
‘‘(F) is signed by the individual. 
‘‘(3) TIMING.—The State agency shall comply 
with paragraph (1) and (2) with respect to a work- 
eligible individual— 
‘‘(A) within 180 days after the effective date 
of this subsection, in the case of an individual 
who, as of such effective date, is a recipient of as-
sistance under the State program funded under 
this part (as in effect immediately before such ef-
fective date); or 
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‘‘(B) within 60 days after the individual is 
determined to be eligible for the assistance, in the 
case of any other individual. 
‘‘(4) PENALTY
FOR
NONCOMPLIANCE
BY
INDI-
VIDUAL.—In addition to any other penalties required 
under the State program funded under this part, the 
State may reduce, by such amount as the State con-
siders appropriate, the amount of assistance otherwise 
payable under the State program to a family that in-
cludes an individual who fails without good cause to 
comply with an individual opportunity plan devel-
oped pursuant to this subsection, that is signed by the 
individual. 
‘‘(5) PERIODIC REVIEW.—The State shall meet 
with each work-eligible individual assessed by the 
State under paragraph (1), not less frequently than 
every 90 days, to— 
‘‘(A) review the individual opportunity 
plan developed for the individual; 
‘‘(B) discuss with the individual the 
progress made by the individual in achieving the 
goals specified in the plan; and 
‘‘(C) update the plan, as necessary, to re-
flect any changes in the circumstances of the in-
dividual since the plan was last reviewed.’’. 
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SEC. 7. PROMOTING ACCOUNTABILITY BY MEASURING 
WORK OUTCOMES. 
(a) IN GENERAL.—Section 407(a) (42 U.S.C. 607(a)) 
is amended to read as follows: 
‘‘(a) PERFORMANCE
ACCOUNTABILITY
AND
WORK 
OUTCOMES.— 
‘‘(1) PURPOSE.—The purpose of this subsection 
is to provide for the establishment of performance ac-
countability measures to assess the effectiveness of 
States in increasing employment, retention, and ad-
vancement among families receiving assistance under 
the State program funded under this part. 
‘‘(2) IN GENERAL.—A State to which a grant is 
made under section 403 for a fiscal year shall achieve 
the requisite level of performance on an indicator de-
scribed in paragraph (3)(B) of this subsection for the 
fiscal year. 
‘‘(3) MEASURING STATE PERFORMANCE.— 
‘‘(A) IN
GENERAL.—Each State, in con-
sultation with the Secretary, shall collect and 
submit to the Secretary the information nec-
essary to measure the level of performance of the 
State for each indicator described in subpara-
graph (B), for fiscal year 2020 and each fiscal 
year thereafter, and the Secretary shall use the 
information collected for fiscal year 2020 to es-
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tablish the baseline level of performance for each 
State for each such indicator. 
‘‘(B) INDICATORS OF PERFORMANCE.—The 
indicators described in this subparagraph, for a 
fiscal year, are the following: 
‘‘(i) The percentage of individuals who 
were work-eligible individuals as of the time 
of exit from the program, who are in unsub-
sidized employment during the 2nd quarter 
after the exit. 
‘‘(ii) The percentage of individuals who 
were work-eligible individuals who were in 
unsubsidized employment in the 2nd quar-
ter after the exit, who are also in unsub-
sidized employment during the 4th quarter 
after the exit. 
‘‘(iii) The median earnings of individ-
uals who were work-eligible individuals as 
of the time of exit from the program, who 
are in unsubsidized employment during the 
2nd quarter after the exit. 
‘‘(iv) The percentage of individuals 
who have not attained 24 years of age, are 
attending high school or enrolled in an 
equivalency program, and are work-eligible 
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individuals or were work-eligible individ-
uals as of the time of exit from the program, 
who obtain a high school degree or its recog-
nized equivalent while receiving assistance 
under the State program funded under this 
part or within 1 year after the exit. 
‘‘(C) LEVELS OF PERFORMANCE.— 
‘‘(i) IN GENERAL.—For each State sub-
mitting a State plan pursuant to section 
402(a), there shall be established, in accord-
ance with this subparagraph, levels of per-
formance for each of the indicators described 
in subparagraph (B). 
‘‘(ii) WEIGHT.—The weight assigned to 
such an indicator shall be the following: 
‘‘(I) 40 percent, in the case of the 
indicator described in subparagraph 
(B)(i). 
‘‘(II) 25 percent, in the case of the 
indicator described in subparagraph 
(B)(ii). 
‘‘(III) 25 percent, in the case of 
the indicator described in subpara-
graph (B)(iii). 
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‘‘(IV) 10 percent, in the case of 
the indicator described in subpara-
graph (B)(iv). 
‘‘(iii) AGREEMENT ON REQUISITE PER-
FORMANCE LEVEL FOR EACH INDICATOR.— 
‘‘(I) IN GENERAL.—The Secretary 
and the State shall negotiate the req-
uisite level of performance for the State 
with respect to each indicator described 
in clause (ii), for each of fiscal years 
2020 through 2023, and in the case of 
each of fiscal years 2021 through 2023, 
shall do so before the beginning of the 
respective fiscal year. 
‘‘(II) REQUIREMENTS
IN
ESTAB-
LISHING
PERFORMANCE
LEVELS.—In 
establishing the requisite levels of per-
formance, the State and the Secretary 
shall— 
‘‘(aa) take into account how 
the levels involved compare with 
the levels established for other 
States; 
‘‘(bb) ensure the levels in-
volved are adjusted, using the ob-
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jective statistical model referred to 
in clause (v), based on— 
‘‘(AA) 
the 
differences 
among States in economic 
conditions, 
including 
dif-
ferences 
in 
unemployment 
rates or employment losses or 
gains in particular indus-
tries; and 
‘‘(BB) the characteris-
tics of participants on entry 
into the program, including 
indicators of prior work his-
tory, lack of educational or 
occupational 
skills 
attain-
ment, or other factors that 
may affect employment and 
earnings; and 
‘‘(CC) take into account 
the extent to which the levels 
involved promote continuous 
improvement in performance 
by each State. 
‘‘(iv) REVISIONS BASED ON ECONOMIC 
CONDITIONS
AND
INDIVIDUALS
RECEIVING 
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ASSISTANCE DURING THE FISCAL YEAR.— 
The Secretary shall, in accordance with the 
objective statistical model referred to in 
clause (v), revise the requisite levels of per-
formance for a State and a fiscal year to re-
flect the economic conditions and character-
istics of the relevant individuals in the 
State during the fiscal year. 
‘‘(v) 
STATISTICAL
ADJUSTMENT 
MODEL.—The Secretary shall use an objec-
tive statistical model to make adjustments 
to the requisite levels of performance for the 
economic conditions and characteristics of 
the relevant individuals, and shall consult 
with the Secretary of Labor to develop a 
model that is the same as or similar to the 
model 
described 
in 
section 
116(b)(3)(A)(viii) of the Workforce Innova-
tion and Opportunity Act (29 U.S.C. 
3141(b)(3)(A)(viii)). 
‘‘(vi) DEFINITION
OF
EXIT.—In this 
subsection, the term ‘exit’ means, with re-
spect to a State program funded under this 
part, ceases to a receive a JOBS benefit 
under the program. 
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‘‘(D) STATE OPTION TO ESTABLISH COMMON 
EXIT
MEASURES.—Notwithstanding 
subpara-
graph (C)(vi) of this paragraph, a State that has 
not provided the notification under section 
121(b)(1)(C)(ii) of the Workforce Innovation and 
Opportunity Act to exclude the State program 
funded under this part as a mandatory one-stop 
partner may adopt an alternative definition of 
‘exit’ for the purpose of creating common exit 
measures to improve alignment with workforce 
programs operated under title I of such Act. 
‘‘(E) REGULATIONS.—In order to ensure 
nationwide comparability of data, the Secretary, 
after consultation the Secretary of Labor and 
with States, shall issue regulations governing the 
establishment of the performance accountability 
system under this subsection and a template for 
performance reports to be used by all States con-
sistent with subsection (b).’’. 
(b) REPORTS ON STATE PERFORMANCE ON HHS ON-
LINE DASHBOARD.—Section 407(b) (42 U.S.C. 607(b)) is 
amended to read as follows: 
‘‘(b) PUBLICATION
OF STATE PERFORMANCE.—The 
Secretary shall, directly or through the use of grants or con-
tracts, establish and operate an Internet website that is ac-
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cessible to the public, with a dashboard that is regularly 
updated and provides easy-to-understand information on 
the performance of each State program funded under this 
part, including a profile for each such program, expressed 
by use of a template, which shall include— 
‘‘(1) information on the indicators and requisite 
performance levels established for the State under sub-
section (a), including, with respect to each such level, 
whether the State achieves, exceeds, or fails to achieve 
the level on an ongoing basis, including— 
‘‘(A) information on any adjustments made 
to the requisite levels using the statistical adjust-
ment model described in subsection (a)(3)(D)(v); 
and 
‘‘(B) a grade based on the overall perform-
ance of the State, as determined by the Secretary 
and in consultation with the State, and the over-
all performance shall be graded based on the per-
formance indicators and weights for each such 
indicator as described in subsection (a); 
‘‘(2) information reported under section 411 on 
the characteristics and demographics of individuals 
receiving assistance under the State program, includ-
ing— 
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‘‘(A) the number and percentage of child- 
only cases and reason why the cases are child- 
only; and 
‘‘(B) the average weekly number of hours 
that each work-eligible individual in the State 
program participates in work activities, includ-
ing a separate section showing the number and 
percentage of the work-eligible individuals with 
zero hours of the participation and the reason for 
non-participation; 
‘‘(3) information on the results of improper pay-
ments reviews; 
‘‘(4) a link to the State plan approved under sec-
tion 402; and 
‘‘(5) information regarding any penalty im-
posed, or other corrective action taken, by the Sec-
retary against a State for failing to achieve a req-
uisite performance level or any other requirement im-
posed by or under this part.’’. 
(c) MODIFICATION
OF RULES
FOR DETERMINING 
WHETHER AN INDIVIDUAL IS ENGAGED IN WORK.—Section 
407(c) (42 U.S.C. 607(c)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
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(i) by striking ‘‘For purposes of sub-
section (b)(1)(B)(i), a’’ and inserting ‘‘A’’; 
and 
(ii) by striking ‘‘, not fewer than’’ and 
all that follows through ‘‘this subsection’’; 
and 
(B) in subparagraph (B)— 
(i) in the matter preceding clause (i), 
by striking ‘‘For purposes of subsection 
(b)(2)(B), an’’ and inserting ‘‘An’’; 
(ii) in clause (i), by striking ‘‘, not 
fewer than’’ and all that follows through 
‘‘this subsection’’; and 
(iii) in clause (ii), by striking ‘‘, not 
fewer than’’ and all that follows through 
‘‘subsection (d)’’; and 
(2) in paragraph (2)— 
(A) by striking subparagraphs (A) and (D); 
(B) in each of subparagraphs (B) and (C), 
by striking ‘‘For purposes of determining month-
ly 
participation 
rates 
under 
subsection 
(b)(1)(B)(i), a’’ and inserting ‘‘A’’; and 
(C) by redesignating subparagraphs (B) 
and (C) as subparagraphs (A) and (B), respec-
tively. 
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(d) MODIFICATIONS TO ALLOWABLE WORK ACTIVI-
TIES.—Section 407(d) (42 U.S.C. 607(d)) is amended— 
(1) in paragraph (5), by inserting ‘‘, including 
apprenticeship’’ before the semicolon; 
(2) in paragraph (8), by striking ‘‘(not to exceed 
12 months with respect to any individual)’’ and in-
serting ‘‘, including career technical education’’; 
(3) in paragraph (11), by striking ‘‘and’’ at the 
end; 
(4) in paragraph (12), by striking the period 
and inserting ‘‘; and’’; and 
(5) by adding at the end the following: 
‘‘(13) any other activity that the State deter-
mines is necessary to improve the employment, earn-
ings, or other outcomes of a recipient of assistance 
that are used in determining a level of performance 
by the State for purposes of subsection (a), as de-
scribed in the State plan approved under section 
402.’’. 
SEC. 8. TARGETING FUNDS TO TRULY NEEDY FAMILIES. 
(a) PROHIBITION ON USE OF FUNDS FOR FAMILIES 
WITH INCOME GREATER THAN TWICE
THE POVERTY 
LINE.—Section 404(k) (42 U.S.C. 604(k)) is amended to 
read as follows: 
‘‘(k) PROHIBITIONS.— 
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‘‘(1) USE OF FUNDS FOR PERSONS WITH INCOME 
GREATER THAN TWICE THE POVERTY LINE.—A State 
to which a grant is made under this part shall not 
use the grant to provide any assistance or services to 
a family whose monthly income exceeds twice the pov-
erty line (as defined by the Office of Management and 
Budget, and revised annually in accordance with sec-
tion 673(2) of the Omnibus Budget Reconciliation Act 
of 1981 (42 U.S.C. 9902(2))).’’. 
(b) ELIMINATION OF LIMITATION ON USE OF FUNDS 
FOR CASE MANAGEMENT ACTIVITIES.—Section 404(b)(2) 
(42 U.S.C. 604(b)(2)) is amended to read as follows: 
‘‘(2) EXCEPTIONS.—Paragraph (1) of this sub-
section shall not apply to the use of a grant for— 
‘‘(A) information technology and comput-
erization needed for tracking, monitoring, or 
data collection required by or under this part; or 
‘‘(B) case management activities to carry 
out section 408(b).’’. 
(c) PROHIBITION ON USE OF FUNDS FOR DIRECT 
SPENDING ON CHILD CARE OR CHILD WELFARE SERVICES 
OR ACTIVITIES.—Section 404(k) (42 U.S.C. 604(k)), as 
amended by subsection (a) of this section, is amended by 
adding at the end the following: 
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‘‘(2) DIRECT SPENDING ON CHILD CARE SERV-
ICES OR ACTIVITIES OR CHILD WELFARE SERVICES OR 
ACTIVITIES.—A State to which a grant is made under 
this part shall not use the grant for direct spending 
on child care services or activities or direct spending 
on child welfare services or activities.’’. 
(d) EXPANSION OF AUTHORITY TO TRANSFER FUNDS 
TO OTHER PROGRAMS.—Section 404(d) (42 U.S.C. 604(d)) 
is amended by striking paragraphs (1) through (3) and in-
serting the following: 
‘‘(1) IN GENERAL.—A State may use not more 
than 50 percent of the grant made to the State under 
section 403(a)(1) to carry out a State program pursu-
ant to any or all of the following provisions of law: 
‘‘(A) The Child Care and Development 
Block Grant Act of 1990. 
‘‘(B) Title I of the Workforce Innovation 
and Opportunity Act. 
‘‘(C) Subpart 1 of part B of this title. 
‘‘(2) LIMITATION ON AMOUNT TRANSFERRABLE 
TO SUBPART 1 OF PART B OF THIS TITLE.— 
‘‘(A) In general.—A State may use not 
more than the applicable percentage of the 
amount of a grant made to the State under sec-
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tion 403(a)(1) to carry out State programs pur-
suant to subpart 1 of part B. 
‘‘(B) APPLICABLE PERCENTAGE.—For pur-
poses of subparagraph (A), the applicable per-
centage is 10 percent. 
‘‘(3) APPLICABLE RULES.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B) of this paragraph, any 
amount paid to a State under this part that is 
used to carry out a State program pursuant to 
a provision of law specified in paragraph (1) 
shall not be subject to the requirements of this 
part, but shall be subject to the requirements that 
apply to Federal funds provided directly under 
the provision of law to carry out the program, 
and the expenditure of any amount so used shall 
not be considered to be an expenditure under this 
part. 
‘‘(B) 
FUNDS
TRANSFERRED
TO
THE 
WIOA.—In the case of funds transferred under 
paragraph (1)(B) of this subsection— 
‘‘(i) all of the funds will be used to 
support families eligible for assistance 
under the State program funded under this 
part; and 
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‘‘(ii) not more than 15 percent of the 
funds will be reserved for statewide work-
force investment activities referred to in sec-
tion 128(a)(1) of the Workforce Innovation 
and Opportunity Act. 
‘‘(4) EXCLUSION
OF
STATES
EXCLUDING
THE 
STATE JOBS PROGRAM AS A MANDATORY ONE-STOP 
PARTNER UNDER THE WIOA.—The authority provided 
by this subsection may not be exercised by a State 
that has provided the notification referred to in sec-
tion 407(a)(3)(D).’’. 
SEC. 9. TARGETING FUNDS TO CORE PURPOSES. 
(a) REQUIREMENT THAT STATES RESERVE 25 PER-
CENT OF JOBS GRANT FOR SPENDING ON CORE ACTIVI-
TIES.—Section 408(a) (42 U.S.C. 608(a)) is amended by 
adding at the end the following: 
‘‘(13) REQUIREMENT THAT STATES RESERVE 25 
PERCENT OF JOBS GRANT FOR SPENDING ON CORE AC-
TIVITIES.—A State to which a grant is made under 
section 403(a)(1) for a fiscal year shall expend not 
less than 25 percent of the grant on assistance, case 
management, work supports and supportive services, 
work, wage subsidies, work activities (as defined in 
section 407(d)), and non-recurring short-term bene-
fits.’’. 
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(b) REQUIREMENT THAT AT LEAST 25 PERCENT OF 
QUALIFIED STATE EXPENDITURES BE FOR CORE ACTIVI-
TIES.—Section 408(a) (42 U.S.C. 608(a)), as amended by 
subsection (a) of this section, is amended by adding at the 
end the following: 
‘‘(14) REQUIREMENT THAT AT LEAST 25 PER-
CENT OF QUALIFIED STATE EXPENDITURES BE FOR 
CORE ACTIVITIES.—Not less than 25 percent of the 
qualified State expenditures (as defined in section 
409(a)(7)(B)(i)) of a State during the fiscal year 
shall be for assistance, case management, work sup-
ports and supportive services, work, wage subsidies, 
work activities (as defined in section 407(d)), and 
non-recurring short-term benefits.’’. 
(c) PHASE-OUT OF COUNTING OF THIRD-PARTY CON-
TRIBUTIONS AS QUALIFIED STATE EXPENDITURES.—Sec-
tion 408(a) (42 U.S.C. 608(a)), as amended by subsections 
(a) and (b) of this section, is amended by adding at the 
end the following: 
‘‘(15) PHASE-OUT OF COUNTING OF THIRD-PARTY 
CONTRIBUTIONS
AS
QUALIFIED
STATE
EXPENDI-
TURES.— 
‘‘(A) IN GENERAL.—The qualified State ex-
penditures 
(as 
defined 
in 
section 
409(a)(7)(B)(i)) of a State for a fiscal year that 
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are attributable to the value of goods and services 
provided by a source other than a State or local 
government shall not exceed the applicable per-
centage of the expenditures for the fiscal year. 
‘‘(B) APPLICABLE
PERCENTAGE.—In sub-
paragraph (A), the term ‘applicable percentage’ 
means, with respect to a fiscal year— 
‘‘(i) 75 percent, in the case of fiscal 
year 2020; 
‘‘(ii) 50 percent, in the case of fiscal 
year 2021; 
‘‘(iii) 25 percent, in the case of fiscal 
year 2022; and 
‘‘(iv) 0 percent, in the case of fiscal 
year 2023 or any succeeding fiscal year.’’. 
SEC. 10. STRENGTHENING PROGRAM INTEGRITY BY MEAS-
URING IMPROPER PAYMENTS. 
Section 404 (42 U.S.C. 604) is amended by adding 
at the end the following: 
‘‘(l) APPLICABILITY OF IMPROPER PAYMENTS LAWS.— 
‘‘(1) IN GENERAL.—The Improper Payments In-
formation Act of 2002 and the Improper Payments 
Elimination and Recovery Act of 2010 shall apply to 
a State in respect of the State program funded under 
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this part in the same manner in which such Acts 
apply to a Federal agency. 
‘‘(2) REGULATIONS.—Within 2 years after the 
date of the enactment of this subsection, the Secretary 
shall prescribe regulations governing how a State re-
views and reports improper payments under the State 
program funded under this part.’’. 
SEC. 11. PROHIBITION ON STATE DIVERSION OF FEDERAL 
FUNDS TO REPLACE STATE SPENDING. 
Section 408(a) (42 U.S.C. 608(a)), as amended by sec-
tion 9 of this Act, is amended by adding at the end the 
following: 
‘‘(16) 
NON-SUPPLANTATION
REQUIREMENT.— 
Funds made available to a State under this part shall 
be used to supplement, not supplant, State general 
revenue spending on activities described in section 
404.’’. 
SEC. 12. INCLUSION OF POVERTY REDUCTION AS A PRO-
GRAM PURPOSE. 
Section 401(a) (42 U.S.C. 601(a)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(3); 
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
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‘‘(5) reduce child poverty by increasing employ-
ment entry, retention, and advancement of needy par-
ents.’’. 
SEC. 13. WELFARE FOR NEEDS NOT WEED. 
(a) PROHIBITION.—Section 408(a)(12)(A) (42 U.S.C. 
608(a)(12)(A)) is amended— 
(1) by striking ‘‘or’’ at the end of clause (ii); 
(2) by striking the period at the end of clause 
(iii) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(iv) any establishment that offers 
marihuana (as defined in section 102(16) of 
the Controlled Substances Act) for sale.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the date that is 2 years after 
the date of the enactment of this Act. 
SEC. 14. STRENGTHENING ACCOUNTABILITY THROUGH 
HHS APPROVAL OF STATE PLANS. 
(a) IN GENERAL.—Section 402 (42 U.S.C. 602) is 
amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘found’’ and inserting ‘‘approved 
that’’; and 
(B) in paragraph (1)— 
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(i) in subparagraph (A)— 
(I) by striking clauses (ii) and 
(iii) and inserting the following: 
‘‘(ii) Require work-eligible individuals 
(as defined in the regulations promulgated 
pursuant to section 407(i)(1)(A)(i)) to en-
gage in work activities consistent with sec-
tion 407(c). The document shall describe 
any other activity that the State will con-
sider 
a 
work 
activity 
under 
section 
407(c)(13).’’; 
(II) by redesignating clauses (iv) 
through (viii) as clauses (iii) through 
(vii), respectively; and 
(III) by adding at the end the fol-
lowing: 
‘‘(viii) Describe the case management 
practices of the State with respect to the re-
quirements of section 408(b), provide a copy 
of the form or forms that will be used to as-
sess a work-eligible individual (as so de-
fined) and prepare an individual oppor-
tunity plan for the individual, describe how 
the State will ensure that such a plan is re-
viewed 
in 
accordance 
with 
section 
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408(b)(5), and describe how the State will 
measure progress under the plan. 
‘‘(ix) Propose the requisite levels of 
performance for the State for purposes of 
section 407(a)(3)(D) for each year in the 2- 
year period referred to in subsection (d) of 
this section, and provide an explanation 
with supporting data of why each such level 
is appropriate. 
‘‘(x) Describe how the State will engage 
low-income noncustodial parents paying 
child support and how such a parent will be 
provided with access to work support and 
other services under the program to which 
the parent is referred to support their em-
ployment and advancement. 
‘‘(xi) Describe how the State will com-
ply with improper payments provisions in 
section 404(l). 
‘‘(xii) Describe coordination with other 
programs, including whether the State in-
tends to exercise authority provided by sec-
tion 404(d) of this Act to transfer any funds 
paid to the State under this part, provide 
assurance that, in the case of a transfer to 
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carry out a program under title I of the 
Workforce Innovation and Opportunity Act, 
the 
State 
will 
comply 
with 
section 
404(d)(3)(B) of this Act and coordinate 
with the one-stop delivery system under the 
Workforce Innovation and Opportunity Act, 
and describe how the State will coordinate 
with the programs involved to provide serv-
ices to families receiving assistance under 
the program referred to in paragraph (1) of 
this subsection. 
‘‘(xiii) Describe how the State will pro-
mote marriage, such as through temporary 
disregard of the income of a new spouse 
when an individual receiving assistance 
under the State program marries so that the 
couple doesn’t automatically lose benefits 
due to marriage. 
‘‘(xiv) Describe how the State will 
allow for a transitional period of benefits, 
such as through temporary earned income 
disregards or a gradual reduction in the 
monthly benefit amount, for an individual 
receiving assistance who obtains employ-
ment and becomes ineligible due to an in-
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crease in income obtained through employ-
ment or through an increase in wages.’’; 
and 
(ii) in subparagraph (B), by striking 
clauses (iv) and (v); 
(2) by striking subsection (c) and inserting the 
following: 
‘‘(c) PUBLIC AVAILABILITY OF STATE PLANS.—The 
Secretary shall make available to the public a link to any 
plan or plan amendment submitted by a State under this 
subsection.’’; and 
(3) by adding at the end the following: 
‘‘(d) 2-YEAR PLAN.—A plan submitted pursuant to 
this section shall be designed to be implemented during a 
2-year period. 
‘‘(e) COMBINED PLAN ALLOWED.—A State may sub-
mit to the Secretary and the Secretary of Labor a combined 
State plan that meets the requirements of subsections (a) 
and (d) and that is for programs and activities under the 
Workforce Innovation and Opportunity Act. 
‘‘(f) APPROVAL OF PLANS.—The Secretary shall ap-
prove any plan submitted pursuant to this section that 
meets the requirements of subsections (a) through (d).’’. 
(b) DUTIES OF THE SECRETARY.— 
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(1) COORDINATION OF ACTIVITIES; DISSEMINA-
TION OF INFORMATION.—Section 416 (42 U.S.C. 616) 
is amended— 
(A) by inserting ‘‘(a) IN GENERAL.—’’ be-
fore ‘‘The programs’’; and 
(B) by adding at the end the following: 
‘‘(b) COORDINATION OF ACTIVITIES.—The Secretary 
shall coordinate all activities of the Department of Health 
and Human Services relating to work activities (as defined 
in section 407(d)) and requirements and measurement of 
employment outcomes, and, to the maximum extent prac-
ticable, coordinate the activities of the Department in this 
regard with similar activities of other Federal entities. 
‘‘(c) DISSEMINATION
OF INFORMATION.—The Sec-
retary shall disseminate, for voluntary informational pur-
poses, information on practices that scientifically valid re-
search indicates are most successful in improving the qual-
ity of State and tribal programs funded under this part.’’. 
(c) TECHNICAL ASSISTANCE.— 
(1) IN GENERAL.—Section 406 (42 U.S.C. 606) 
is amended to read as follows: 
‘‘SEC. 406. TECHNICAL ASSISTANCE. 
‘‘(a) IN GENERAL.—The Secretary shall provide tech-
nical assistance to States and Indian tribes (which may 
include providing technical assistance on a reimbursable 
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basis), which shall be provided by qualified experts on prac-
tices grounded in scientifically valid research, where appro-
priate, to support activities related publication of State per-
formance under section 407(b) and to carry out State and 
tribal programs funded under this part. 
‘‘(b) RESERVATION OF FUNDS.—The Secretary shall 
reserve not more than 0.25 percent of the amount appro-
priated by section 403(a)(1)(C) for a fiscal year to carry 
out subsection (a) of this section.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
403(a)(1)(B) (42 U.S.C. 603(a)(1)(B)) is amended by 
striking ‘‘percentage specified in section 413(h)(1)’’ 
and inserting ‘‘the sum of the percentages specified in 
sections 406(b) and 413(h)’’. 
SEC. 15. ALIGNING AND IMPROVING DATA REPORTING. 
(a) REQUIREMENT THAT STATES REPORT FULL-POP-
ULATION DATA.—Section 411(a)(1) (42 U.S.C. 611(a)(1)) 
is amended— 
(1) by striking subparagraph (B); 
(2) by striking ‘‘(1) GENERAL REPORTING RE-
QUIREMENT.—’’; and 
(3) by— 
(A) redesignating— 
(i) subparagraph (A) as paragraph 
(1); 
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(ii) clauses (i) through (xvii) of sub-
paragraph 
(A) 
as 
subparagraphs 
(A) 
through (Q), respectively; 
(iii) subclauses (I) through (V) of 
clause (ii) as clauses (i) through (v), respec-
tively; 
(iv) subclauses (I) through (VII) of 
clause (xi) as clauses (i) through (vii), re-
spectively; and 
(v) subclauses (I) through (V) of clause 
(xvi) as clauses (i) through (v), respectively; 
and 
(B) moving each such redesignated provi-
sion 2 ems to the left. 
(b) REPORT
ON PARTICIPATION
IN WORK ACTIVI-
TIES.—Section 411(a)(1) (42 U.S.C. 611(a)(1)), as amend-
ed by subsection (a)(3) of this section, is amended by strik-
ing subparagraphs (K) and (L) and inserting the following: 
‘‘(K) The work eligibility status of each in-
dividual in the family, and— 
‘‘(i) in the case of each work-eligible 
individual (as defined in the regulations 
promulgated 
pursuant 
to 
section 
407(i)(1)(A)(i)) in the family— 
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‘‘(I) the number of hours (includ-
ing zero hours) per month of participa-
tion in— 
‘‘(aa) work activities (as de-
fined in section 407(d)); and 
‘‘(bb) any other activity re-
quired by the State to remove a 
barrier to employment; and 
‘‘(ii) in the case of each individual in 
the family who is not a work-eligible indi-
vidual (as so defined), the reason for that 
status. 
‘‘(L) For each work-eligible individual (as 
so defined) and each adult in the family who did 
not participate in work activities (as so defined) 
during a month, the reason for the lack of par-
ticipation.’’. 
(c) REPORTING OF INFORMATION ON EMPLOYMENT 
AND EARNINGS OUTCOMES.—Section 411(c) (42 U.S.C. 
611(c)) is amended to read as follows: 
‘‘(c) REPORTING OF INFORMATION ON EMPLOYMENT 
AND EARNINGS OUTCOMES.—The Secretary, in consulta-
tion with the Secretary of Labor, shall determine the infor-
mation that is necessary to compute the employment and 
earnings outcomes and the statistical adjustment model for 
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the employment and earnings outcomes required under sec-
tion 407, and each eligible State shall collect and report 
that information to the Secretary.’’. 
SEC. 16. TECHNICAL CORRECTIONS TO DATA EXCHANGE 
STANDARDS TO IMPROVE PROGRAM COORDI-
NATION. 
(a) IN GENERAL.—Section 411(d) (42 U.S.C. 611(d)) 
is amended to read as follows: 
‘‘(d) DATA EXCHANGE STANDARDS FOR IMPROVED 
INTEROPERABILITY.— 
‘‘(1) DESIGNATION.—The Secretary shall, in con-
sultation with an interagency work group established 
by the Office of Management and Budget and consid-
ering State government perspectives, by rule, des-
ignate data exchange standards to govern, under this 
part— 
‘‘(A) necessary categories of information 
that State agencies operating programs under 
State plans approved under this part are re-
quired under applicable Federal law to electroni-
cally exchange with another State agency; and 
‘‘(B) Federal reporting and data exchange 
required under applicable Federal law. 
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‘‘(2) REQUIREMENTS.—The data exchange stand-
ards required by paragraph (1) shall, to the extent 
practicable— 
‘‘(A) incorporate a widely accepted, non- 
proprietary, searchable, computer-readable for-
mat, such as the eXtensible Markup Language; 
‘‘(B) contain interoperable standards devel-
oped and maintained by intergovernmental part-
nerships, such as the National Information Ex-
change Model; 
‘‘(C) incorporate interoperable standards 
developed and maintained by Federal entities 
with authority over contracting and financial 
assistance; 
‘‘(D) be consistent with and implement ap-
plicable accounting principles; 
‘‘(E) be implemented in a manner that is 
cost-effective and improves program efficiency 
and effectiveness; and 
‘‘(F) be capable of being continually up-
graded as necessary. 
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to require a change to 
existing data exchange standards found to be effective 
and efficient.’’. 
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(b) EFFECTIVE DATE.—Not later than the date that 
is 24 months after the date of the enactment of this section, 
the Secretary of Health and Human Services shall issue 
a proposed rule that— 
(1) identifies federally required data exchanges, 
include specification and timing of exchanges to be 
standardized, and address the factors used in deter-
mining whether and when to standardize data ex-
changes; and 
(2) specifies State implementation options and 
describes future milestones. 
SEC. 17. SET-ASIDE FOR ECONOMIC DOWNTURNS. 
Section 404(e) (42 U.S.C. 604(e)) is amended to read 
as follows: 
‘‘(e) DEADLINES
FOR OBLIGATION
AND EXPENDI-
TURES OF FUNDS BY STATES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State to which funds are paid under sec-
tion 403(a)(1) shall obligate the funds within 2 years 
after the date the funds are so paid, and shall expend 
the funds within 3 years after such date. 
‘‘(2) EXCEPTION
FOR
LIMITED
AMOUNT
OF 
FUNDS SET ASIDE FOR FUTURE USE.—A State to 
which funds are paid under section 403(a)(1) may re-
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serve not more than 15 percent of the funds for future 
use in the State program funded under this part.’’. 
SEC. 18. DEFINITIONS RELATED TO USE OF FUNDS. 
Section 419 (42 U.S.C. 619) is amended by adding 
at the end the following: 
‘‘(6) ASSISTANCE.—The term ‘assistance’ means 
cash, payments, vouchers, and other forms of benefits 
designed to meet a family’s ongoing basic needs (such 
as for food, clothing, shelter, utilities, household goods, 
personal care items, and general incidental expenses). 
‘‘(7) WORK
SUPPORTS.—The term ‘work sup-
ports’ means assistance and non-assistance transpor-
tation benefits (such as the value of allowances, bus 
tokens, car payments, auto repair, auto insurance re-
imbursement, and van services provided in order to 
help families obtain, retain, or advance in employ-
ment, participate in work activities (as defined in 
section 407(d)), or as a non-recurrent, short-term ben-
efit, including goods provided to individuals in order 
to help them obtain or maintain employment (such as 
tools, uniforms, fees to obtain special licenses, bonuses, 
incentives, and work support allowances and expendi-
tures for job access). 
‘‘(8) SUPPORTIVE
SERVICES.—The term ‘sup-
portive services’ means services such as domestic vio-
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lence services, and mental health, substance abuse and 
disability services, housing counseling services, and 
other family supports, except to the extent that the 
provision of the service would violate section 
408(a)(6). 
‘‘(9) JOBS BENEFIT.—The term ‘JOBS benefit’ 
means— 
‘‘(A) assistance; or 
‘‘(B) wage subsidies that are paid, with 
funds provided under section 403(a) or with 
qualified State expenditures, with respect to a 
person who— 
‘‘(i) was a work-eligible individual (as 
defined in the regulations promulgated pur-
suant to section 407(i)(1)(A)(i)) at the time 
of entry into subsidized employment, such 
as on-the-job training or apprenticeship; 
and 
‘‘(ii) is not receiving assistance.’’. 
SEC. 19. ELIMINATION OF OBSOLETE PROVISIONS. 
(a) ELIMINATION
OF SUPPLEMENTAL GRANTS
TO 
STATES.—Section 403(a) (42 U.S.C. 603(a)) is amended 
by striking paragraph (3). 
(b) ELIMINATION OF BONUS TO REWARD HIGH PER-
FORMANCE STATES.— 
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(1) IN
GENERAL.—Section 403(a) (42 U.S.C. 
603(a)) is amended by striking paragraph (4). 
(2) 
CONFORMING
AMENDMENT.—Section 
1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 
striking ‘‘403(a)(4),’’. 
(c) ELIMINATION OF WELFARE-TO-WORK GRANTS.— 
(1) IN
GENERAL.—Section 403(a) (42 U.S.C. 
603(a)) is amended by striking paragraph (5). 
(2) CONFORMING AMENDMENTS.— 
(A) ELIMINATION
OF
EXCLUSION
FROM 
TIME
LIMIT.—Section 408(a)(7) (42 U.S.C. 
608(a)(7)) is amended by striking subparagraph 
(G). 
(B) ELIMINATION OF PENALTY FOR MISUSE 
OF
COMPETITIVE
WELFARE-TO-WORK
FUNDS.— 
Section 409(a)(1) (42 U.S.C. 609(a)(1)) is 
amended by striking subparagraph (C). 
(C) ELIMINATION
OF
EXCLUSION
FROM 
QUALIFIED
STATE
EXPENDITURES
OF
STATE 
FUNDS
USED
TO
MATCH
WELFARE-TO-WORK 
GRANT
FUNDS.—Section 409(a)(7)(B)(iv) (42 
U.S.C. 609(a)(7)(B)(iv)) is amended in the 1st 
sentence— 
(i) by adding ‘‘or’’ at the end of sub-
clause (II); and 
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(ii) by striking subclause (III) and re-
designating subclause (IV) as subclause 
(III). 
(D) ELIMINATION OF PENALTY FOR FAIL-
URE OF STATE TO MAINTAIN HISTORIC EFFORT 
DURING
YEAR
IN
WHICH
WELFARE-TO-WORK 
GRANT IS RECEIVED.—Section 409(a) (42 U.S.C. 
609(a)) is amended by striking paragraph (13). 
(E) ELIMINATION
OF
REQUIREMENTS
RE-
LATING TO WELFARE-TO-WORK GRANTS IN QUAR-
TERLY
STATE
REPORTS.—Section 411(a) (42 
U.S.C. 611(a)), as amended by section 15(a) of 
this Act, is amended— 
(i) in paragraph (1), by striking ‘‘(ex-
cept for information relating to activities 
carried out under section 403(a)(5))’’; and 
(ii) in each of paragraphs (2) through 
(4), by striking the comma and all that fol-
lows and inserting a period. 
(F) INDIAN
TRIBAL
PROGRAMS.—Section 
412(a) (42 U.S.C. 612(a)) is amended by strik-
ing paragraph (3). 
(G) ELIMINATION OF REQUIREMENT TO DIS-
CLOSE CERTAIN INFORMATION TO PRIVATE IN-
DUSTRY COUNCIL RECEIVING WELFARE-TO-WORK 
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sradovich on DSK3GMQ082PROD with BILLS
FUNDS.—Section 454A(f) (42 U.S.C. 654a(f)) is 
amended by striking paragraph (5). 
(H) GRANTS
TO
TERRITORIES.—Section 
1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 
striking ‘‘403(a)(5),’’. 
(d) ELIMINATION OF CONTINGENCY FUND.— 
(1) IN GENERAL.—Section 403 (42 U.S.C. 603) 
is amended by striking all of subsection (b) except 
paragraph (5). 
(2) CONFORMING AMENDMENTS.— 
(A) TRANSFER OF NEEDY STATE DEFINI-
TION.— 
(i) IN
GENERAL.—Paragraph (5) of 
section 403(b) (42 U.S.C. 603(b)(5)) is— 
(I) amended— 
(aa) in the matter preceding 
subparagraph (A), by striking 
‘‘paragraph (4)’’ and inserting 
‘‘subparagraph (C)’’; 
(bb) in each of subpara-
graphs (A) and (B), by redesig-
nating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively; 
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sradovich on DSK3GMQ082PROD with BILLS
(cc) by redesignating sub-
paragraphs 
(A) 
and 
(B) 
as 
clauses (i) and (ii), respectively; 
(dd) by redesignating such 
paragraph as subparagraph (D); 
and 
(ee) by moving each provi-
sion 2 ems to the right; and 
(II) as so amended, hereby trans-
ferred 
into 
section 
409(a)(3) 
(42 
U.S.C. 609(a)(3)) and added to the end 
of such section. 
(ii) CONFORMING
AMENDMENT.—Sec-
tion 409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) 
is amended by striking ‘‘(as defined in sec-
tion 403(b)(5))’’. 
(B) ELIMINATION OF PENALTY FOR FAILURE 
OF STATE RECEIVING AMOUNTS FROM CONTIN-
GENCY FUND TO MAINTAIN 100 PERCENT OF HIS-
TORIC
EFFORT.—Section 409(a) (42 U.S.C. 
609(a)) is amended by striking paragraph (10). 
(e) CONFORMING AMENDMENTS RELATED TO ELIMI-
NATION OF FEDERAL LOANS FOR STATE WELFARE PRO-
GRAMS.— 
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(1) ELIMINATION OF ASSOCIATED PENALTY PRO-
VISION.— 
(A) IN
GENERAL.—Section 409(a) (42 
U.S.C. 609(a)) is amended by striking para-
graph (6). 
(B) CONFORMING
AMENDMENTS.—Section 
412(g)(1) (42 U.S.C. 612(g)(1)) is amended by 
striking ‘‘(a)(6),’’. 
(2) ELIMINATION OF PROVISION PROVIDING FOR 
TRIBAL ELIGIBILITY.—Section 412 (42 U.S.C. 612) is 
amended by striking subsection (f). 
(3) ELIMINATION OF DISREGARD OF LOAN IN AP-
PLYING LIMIT ON PAYMENTS TO THE TERRITORIES.— 
Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended 
by striking ‘‘406,’’. 
(f) ELIMINATION OF LIMITATIONS ON OTHER STATE 
PROGRAMS FUNDED WITH QUALIFIED STATE EXPENDI-
TURES.— 
(1) The following provisions are each amended 
by striking ‘‘or any other State program funded with 
qualified State expenditures (as defined in section 
409(a)(7)(B)(i))’’: 
(A) Paragraphs (1) and (2) of section 
407(e) (42 U.S.C. 607(e)(1) and (2)). 
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(B) 
Section 
411(a)(1) 
(42 
U.S.C. 
611(a)(1)), as amended by section 15(a)(3)(A)(i) 
of this Act. 
(C) Subsections (d) and (e)(1) of section 
413 (42 U.S.C. 613(d) and (e)(1)). 
(2) Section 413(a) (42 U.S.C. 613(a)) is amend-
ed by striking ‘‘and any other State program funded 
with qualified State expenditures (as defined in sec-
tion 409(a)(7)(B)(i))’’. 
(g) CONFORMING AMENDMENTS RELATED TO ELIMI-
NATION OF REPORT.— 
(1) IN GENERAL.—Section 409(a)(2) (42 U.S.C. 
609(a)(2)) is amended— 
(A) in the paragraph heading, by inserting 
‘‘QUARTERLY’’ before ‘‘REPORT’’; 
(B) in subparagraph (A)(ii), by striking 
‘‘clause (i)’’ and inserting ‘‘subparagraph (A)’’; 
(C) by striking ‘‘(A) QUARTERLY
RE-
PORTS.—’’; 
(D) by striking subparagraph (B); and 
(E) by redesignating clauses (i) and (ii) of 
subparagraph (A) as subparagraphs (A) and 
(B), respectively (and adjusting the margins ac-
cordingly). 
(2) CONFORMING AMENDMENTS.— 
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(A) Section 409(b)(2) (42 U.S.C. 609(b)(2)) 
is amended by striking ‘‘and,’’ and all that fol-
lows and inserting a period. 
(B) Section 409(c)(4) (42 U.S.C. 609(c)(4)) 
is amended by striking ‘‘(2)(B),’’. 
(h) 
ANNUAL
REPORTS
TO
CONGRESS.—Section 
411(b)(1)(A) (42 U.S.C. 611(b)(1)(A)) is amended by strik-
ing ‘‘participation rates’’ and inserting ‘‘outcome meas-
ures’’. 
(i) REDUCTION
IN
FORCE
PROVISIONS.—Section 
416(a) (42 U.S.C. 616(a)), as so designated by section 
14(b)(1)(A) of this Act, is amended by striking ‘‘, and the 
Secretary’’ and all that follows and inserting a period. 
(j) CONFORMING CROSS-REFERENCES.— 
(1) Section 409 (42 U.S.C. 609) is amended— 
(A) in subsection (a)(7)(B)(i)(III), by strik-
ing ‘‘(12)’’ and inserting ‘‘(10)’’; 
(B) in subsection (a) (as amended by sub-
sections (c)(2)(D), (d)(2)(B), and (e)(1)(A) of 
this section), by redesignating paragraphs (7), 
(8), (9), (11), (12), (14), (15), and (16) as para-
graphs (6) through (13), respectively; 
(C) in subsection (b)(2), by striking ‘‘(8), 
(10), (12), or (13)’’ and inserting ‘‘or (10)’’; and 
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(D) in subsection (c)(4), by striking ‘‘(8), 
(10), (12), (13), or (16)’’ and inserting ‘‘(10), or 
(13)’’. 
(2) Section 452 (42 U.S.C. 652) is amended in 
each of subsections (d)(3)(A)(i) and (g)(1) by striking 
‘‘409(a)(8)’’ and inserting ‘‘409(a)(7)’’. 
(k) MODIFICATIONS TO MAINTENANCE-OF-EFFORT RE-
QUIREMENT.—Section 
409(a)(6)(B)(i) 
(42 
U.S.C. 
609(a)(6)(B)(i)), as redesignated by subsection (j)(1)(B) of 
this section, is amended— 
(1) in subclause (I)— 
(A) in the matter preceding item (aa), by 
striking ‘‘all State programs’’ and inserting ‘‘the 
State program funded under this part’’; 
(B) by redesignating items (dd) and (ee) as 
items (ee) and (ff), respectively, and inserting 
after item (cc) the following: 
‘‘(dd) Expenditures for a 
purpose described in paragraph 
(3) or (4) of section 401(a).’’; and 
(C) in item (ee) (as so redesignated), by 
striking ‘‘and (ee)’’ and inserting ‘‘(dd), and 
(ff)’’; 
(2) in subclause (II)(aa), by inserting ‘‘(as in ef-
fect just before the effective date of the Jobs and Op-
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portunity with Benefits and Services for Success 
Act)’’ after ‘‘this section’’; 
(3) by striking subclause (V); and 
(4) in subclause (IV), by inserting ‘‘, except any 
of such families whose monthly income exceeds twice 
the poverty line (as defined by the Office of Manage-
ment and Budget, and revised annually in accordance 
with section 673(2) of the Omnibus Budget Reconcili-
ation Act of 1981 (42 U.S.C. 9902(2)))’’ before the pe-
riod. 
SEC. 20. EFFECTIVE DATE. 
Except as provided in section 13(b), the amendments 
made by this Act shall take effect on October 1, 2018. 
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Union Calendar No. 587 
115TH CONGRESS 
2D SESSION 
H. R. 5861 
[Report No. 115–754] 
A BILL 
To amend part A of title IV of the Social Security 
Act, and for other purposes. 
JUNE 13, 2018 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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