‘‘(d) CONDITIONS OF PARTICIPATION.— 
‘‘(1) WORK REQUIREMENTS.— 
‘‘(A) IN GENERAL.—No able-bodied, work- 
capable adult shall be eligible to participate in 
the supplemental nutrition assistance program 
if the individual— 
‘‘(i) refuses, at the time of application 
and every 12 months thereafter, to register 
for employment in a manner prescribed by 
the Secretary; 
‘‘(ii) refuses without good cause to ac-
cept an offer of employment, at a site or 
plant not subject to a strike or lockout at 
the time of the refusal, at a wage not less 
than the higher of— 
‘‘(I) the applicable Federal or 
State minimum wage; or 
‘‘(II) 80 percent of the wage that 
would have applied had the minimum 
hourly rate under section 6(a)(1) of 
the Fair Labor Standards Act of 
1938 (29 U.S.C. 206(a)(1)) been ap-
plicable to the offer of employment; 
‘‘(iii) refuses without good cause to 
provide a State agency with sufficient in-
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formation to allow the State agency to de-
termine the employment status or the job 
availability of the individual; or 
‘‘(iv) voluntarily— 
‘‘(I) quits a job; or 
‘‘(II) reduces work effort and, 
after the reduction, is working less 
than 30 hours per week, unless an-
other adult in the same family unit in-
creases employment at the same time 
by an amount that is at least equal to 
the reduction in work effort by the 
first adult. 
‘‘(B) FAMILY UNIT INELIGIBILITY.—If an 
able-bodied, work-capable adult is ineligible to 
participate in the supplemental nutrition assist-
ance program because of subparagraph (A), no 
other member of the family unit to which that 
adult belongs shall be eligible to participate. 
‘‘(C) DURATION
OF
INELIGIBILITY.—An 
able-bodied, work-capable adult who becomes 
ineligible under subparagraph (A), and mem-
bers of the family unit who become ineligible 
under subparagraph (B), shall remain ineligible 
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for 3 months after the date on which ineligi-
bility began. 
‘‘(D) RESTORATION OF ELIGIBILITY.—At 
the end of the 3-month period of ineligibility 
under subparagraph (c), members of a work-ca-
pable family unit may have their eligibility to 
participate in the supplemental nutrition assist-
ance program restored, if— 
‘‘(i) the family unit is no longer a 
work-capable family unit; or 
‘‘(ii) the adult members of the family 
unit begin and maintain any combination 
of paid employment and work activation 
sufficient to meet the appropriate stand-
ards for resumption of benefits in section 
29(c)(2). 
‘‘(2) STRIKE
AGAINST
A
GOVERNMENT.—For 
the purpose of subparagraph (A)(iv), an employee of 
the Federal Government, a State, or a political sub-
division of a State, who is dismissed for partici-
pating in a strike against the Federal Government, 
the State, or the political subdivision of the State 
shall be considered to have voluntarily quit without 
good cause. 
‘‘(3) STRIKING WORKERS INELIGIBLE.— 
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‘‘(A) IN GENERAL.—Except as provided in 
subparagraphs (B) and (C) and notwith-
standing any other provision of law, no member 
of a family shall be eligible to participate in the 
supplemental nutrition assistance program at 
any time that any able-bodied, work-capable 
adult member of the household is on strike as 
defined in section 501 of the Labor Manage-
ment Relations Act, 1947 (29 U.S.C. 142), be-
cause of a labor dispute (other than a lockout) 
as defined in section 2 of the National Labor 
Relations Act (29 U.S.C. 152). 
‘‘(B) PRIOR ELIGIBILITY.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), a family unit shall not lose eligibility 
to participate in the supplemental nutrition 
assistance program as a result of 1 of the 
members of the family unit going on strike 
if the household was eligible immediately 
prior to the strike. 
‘‘(ii) NO INCREASED ALLOTMENT.—A 
family unit described in clause (i) shall not 
receive an increased allotment as the result 
of a decrease in the income of the 1 or 
more striking members of the household. 
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‘‘(C) 
REFUSAL
TO
ACCEPT
EMPLOY-
MENT.—Ineligibility described in subparagraph 
(A) shall not apply to any family unit that does 
not contain a member on strike, if any of the 
members of the family unit refuses to accept 
employment at a plant or site because of a 
strike or lockout.’’. 
(e) ELIGIBILITY OF STUDENTS WITH DEPENDENT 
CHILDREN.—Section 6(e) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2015(e)) is amended by striking para-
graph (8) and inserting the following: 
‘‘(8) is enrolled full-time in an institution of 
higher education, as determined by the institution, 
and— 
‘‘(A) is a single parent with responsibility 
for the care of a dependent child under 12 
years of age; or 
‘‘(B) is a family head or married spouse of 
a family head in a married couple family with 
dependent children and has a dependent child 
under age 12 residing in the home.’’. 
(f) WORK REQUIREMENT.—Section 6 of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2015) is amended 
by striking subsection (o) and inserting the following: 
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‘‘(o) FULFILLMENT OF EMPLOYMENT AND WORK 
ACTIVATION REQUIREMENTS.— 
‘‘(1) IN GENERAL.—If 1 or more adults within 
a program-eligible family unit are required by the 
State agency to participate in work activation under 
section 29, no member of the family unit shall be eli-
gible for supplemental nutrition assistance benefits 
unless the relevant 1 or more adults fully comply 
with the work activation standards. 
‘‘(2) SANCTIONS AND RESUMPTION OF BENE-
FITS.—If 1 or more adults within a program-eligible 
family unit who are required by the State agency to 
participate in work activation under section 29 dur-
ing a given month fail to comply with the work acti-
vation standards, benefits for all members of the 
family unit— 
‘‘(A) shall be terminated in accordance 
with section 29(c)(1); and 
‘‘(B) may be resumed upon compliance 
with section 29(c)(2).’’. 
(g) EXCLUSION.—Section 6 of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2015) is amended by adding 
at the end the following: 
‘‘(r) MINOR CHILDREN.—No child less than age 18 
years of age may participate in the supplemental nutrition 
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assistance program unless the child is a member of a fam-
ily with dependent children and resides with an adult who 
is— 
‘‘(1) the family head of the same family of 
which the child is also a member; 
‘‘(2) eligible to participate, and participating, in 
the supplemental nutrition assistance program as a 
member of the same household as the child; and 
‘‘(3) lawfully residing, and eligible to work, in 
the United States.’’. 
(h) 
HEARING
AND
DETERMINATION.—Section 
11(e)(10) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2020(e)(10)) is amended by striking ‘‘: Provided’’ 
and all that follows through ‘‘hearing;’’ at the end and 
inserting a semicolon. 
(i) WORK REQUIREMENTS AND ACTIVATION PRO-
GRAM.—The Food and Nutrition Act of 2008 (7 U.S.C. 
2011 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 29. WORK REQUIREMENTS AND ACTIVATION PRO-
GRAM. 
‘‘(a) WORK ACTIVATION STANDARDS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (3), a 
family unit with adult members that is required to 
participate in work activation under subsection (e) 
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during a full month of participation in the supple-
mental nutrition assistance program shall fulfill the 
following levels of work activation during that 
month: 
‘‘(A) WORK
ACTIVATION
PERFORMANCE 
LEVEL FOR PROGRAM-ELIGIBLE ADULT WITH-
OUT DEPENDENT CHILDREN.—Each program- 
eligible adult without dependent children who is 
required to participate in work activation by a 
State agency under subsection (e) for a par-
ticular month shall be required to perform a 
minimum of 36 hours of work activation for 
that month, including at least— 
‘‘(i) a minimum of 16 hours of super-
vised onsite work activation; and 
‘‘(ii) a minimum of 20 additional 
hours of— 
‘‘(I) onsite work activation; 
‘‘(II) approved offsite work acti-
vation; or 
‘‘(III) a combination of both. 
‘‘(B) WORK
ACTIVATION
PERFORMANCE 
LEVELS FOR PROGRAM-ELIGIBLE SINGLE PAR-
ENT FAMILIES WITH DEPENDENT CHILDREN.— 
Work-capable adult family heads in program-el-
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igible single parent families with dependent 
children who are required by a State agency to 
participate in work activation under subsection 
(e) shall be required to perform a minimum of 
72 hours of work activation per month, includ-
ing at least— 
‘‘(i) a minimum of 32 hours of super-
vised onsite work activation; and 
‘‘(ii) a minimum of 40 additional 
hours of— 
‘‘(I) onsite work activation; 
‘‘(II) approved offsite work acti-
vation; or 
‘‘(III) a combination of both. 
‘‘(C) WORK
ACTIVATION
PERFORMANCE 
LEVELS FOR PROGRAM-ELIGIBLE MARRIED COU-
PLES WITH DEPENDENT CHILDREN.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), each program-eligible married couple 
with dependent children that is required by 
a State agency to participate in work acti-
vation under subsection (e) shall be re-
quired to perform a minimum of 72 hours 
of work activation per month, including at 
least— 
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‘‘(I) a minimum of 32 hours of 
supervised onsite work activation; and 
‘‘(II) a minimum of 40 additional 
hours of— 
‘‘(aa) onsite work activation; 
‘‘(bb) approved offsite work 
activation; or 
‘‘(cc) a combination of both. 
‘‘(ii) REQUIREMENTS.— 
‘‘(I) 
SINGLE
JOINT
OBLIGA-
TION.—The 
72-hour 
requirement 
under clause (i) shall be a single joint 
obligation for the married couple as a 
whole in which the activities of both 
married partners shall be combined 
together and counted jointly. 
‘‘(II) OPTIONS.—The work acti-
vation requirement for a work-capable 
married couple family with dependent 
children may be fulfilled by— 
‘‘(aa) 72 or more hours of 
appropriate activity by the family 
head; 
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‘‘(bb) 72 or more hours of 
appropriate activity by the mar-
ried spouse of the family head; or 
‘‘(cc) the combined activity 
of the family head and married 
spouse of the family head which 
when added together equal or ex-
ceed 72 hours. 
‘‘(D) NO SEPARATE WORK ACTIVATION RE-
QUIREMENT.—Neither the family head nor the 
married spouse of the family in a married cou-
ple family with dependent children shall be sub-
ject to a separate work activation requirement 
as individuals. 
‘‘(2) STATE
OPTION
TO
REQUIRE
GREATER 
AMOUNTS OF WORK ACTIVATION.—At its discretion, 
a State may require work-capable family units to en-
gage in hours of work activation per month that are 
greater than the levels specified in paragraph (1), 
except that the number of hours of work activation 
required of work-capable married couples with de-
pendent children shall not be greater than the num-
ber maximum hours of work activation required of 
work-capable single parent families with dependent 
children. 
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‘‘(3) LIMITATION
ON
COMBINED
HOURS
OF 
WORK ACTIVATION AND PAID EMPLOYMENT.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
paragraphs (A), (B), and (C) of paragraph (1), 
a State may count any program-eligible family 
unit as fulfilling the full engagement require-
ment of the family unit for a month, for pur-
poses of paragraphs (3) and (4) of subsection 
(e), if the combined sum of paid employment 
and work activation by work-capable adults 
within the family unit in that month equals at 
least 160 hours. 
‘‘(B) RESULT OF FULFILLMENT.—If the 
combined sum of hours of paid employment and 
work activation by work-capable individuals 
within a program-eligible family unit is at least 
160 hours in a given month— 
‘‘(i) the family unit has fulfilled the 
Federal work activation standards of the 
family unit for that month; and 
‘‘(ii) the State agency need not re-
quire members of the family unit to per-
form additional work activation during 
that month. 
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‘‘(b) PRO RATA REDUCTION IN EMPLOYMENT AND 
WORK
ACTIVATION
STANDARD
DURING
A
PARTIAL 
MONTH.— 
‘‘(1) IN GENERAL.—A program-eligible family 
unit shall be subject to a pro-rated work activation 
standard, if the family unit— 
‘‘(A) receives a pro-rated monthly allot-
ment during the initial month of enrollment 
under section 8(c); and 
‘‘(B) is required by the State to participate 
in the work activation program during that 
month. 
‘‘(2) PRO-RATED
WORK
ACTIVATION
STAND-
ARD.—For purposes of paragraph (1), the term 
‘pro-rated work activation standard’ means a stand-
ard that equals a number of hours of work activity 
of a family unit that bears the same proportion to 
the work activation requirement for the family unit 
for a full month under subsection (a) as the propor-
tion that— 
‘‘(A) the pro-rated monthly allotment re-
ceived by the household for the partial month 
under section 8(c); bears to 
‘‘(B) the full allotment the same household 
would receive for a complete month. 
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‘‘(3) REQUIREMENT.—For purposes of fulfilling 
the pro-rated work activation requirement during an 
initial month of enrollment in the supplemental nu-
trition assistance program, only those hours of adult 
work activation that occurred during the portion of 
the month in which the family unit was participating 
in the supplemental nutrition assistance program 
shall be counted. 
‘‘(c) SANCTION FOR NONCOMPLIANCE BY FAMILY 
UNITS.— 
‘‘(1) STANDARD.— 
‘‘(A) IN GENERAL.—If 1 or more members 
of a program-eligible family unit are required to 
participate in the work activation program 
under subsection (e) in a calendar month and 
1 or more individuals fail to fulfill the work ac-
tivation standards under subsection (a) or (b) 
for that month— 
‘‘(i) no member of the family unit 
shall be eligible to receive supplemental nu-
trition assistance benefits during the sub-
sequent calendar month; and 
‘‘(ii) except as provided in subpara-
graph (B), the State agency shall not pro-
vide the supplemental nutrition assistance 
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benefit payment for all members of the 
family unit that otherwise would have been 
issued at the beginning of the next month. 
‘‘(B) ADMINISTRATIVE
DELAY
OF
SANC-
TION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clauses (ii) and (iii), if it is admin-
istratively infeasible for the State to not 
provide the supplemental nutrition assist-
ance benefit that would be issued at the 
beginning of the first month after the 
month of noncompliance, the State shall 
not provide the payment to all members of 
the family unit that otherwise would have 
been made at the beginning of the second 
month after the month of noncompliance. 
‘‘(ii) DEADLINE.—The sanction of 
benefits shall occur not later than 32 days 
after the end of the month of noncompli-
ance. 
‘‘(iii) RELATIONSHIP
OF
PAYMENTS 
TO MEMBERS OF THE FAMILY UNIT.—At 
least 1 monthly payment to all members of 
the family unit shall be not provided for 
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each month of noncompliance under sub-
paragraph (A). 
‘‘(2) RESUMPTION OF BENEFITS AFTER SANC-
TION.— 
‘‘(A) IN GENERAL.—If a family unit has 
had the monthly benefit of the family unit not 
provided due to noncompliance with a work ac-
tivation requirement under paragraph (1), the 
family unit shall not be eligible to receive future 
benefits under the supplemental nutrition as-
sistance program until— 
‘‘(i) the 1 or more work-capable mem-
bers of the family unit have— 
‘‘(I) successfully participated in a 
work activation program under sub-
section (e) for at least 4 consecutive, 
subsequent weeks; and 
‘‘(II) fulfilled the work activation 
standard for the family unit for that 
same 4-week period by maintaining an 
hourly total of participation in work 
activation that is at least equal to the 
appropriate monthly totals for hours 
of participation provided in subsection 
(a); 
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‘‘(ii) the family unit no longer con-
tains any able-bodied, work-capable adults; 
or 
‘‘(iii) the family unit maintains at 
least 120 hours of paid employment during 
the 4-week period. 
‘‘(B) LIMITATION.—The resumed benefits 
provided under subparagraph (A) shall not re-
store or compensate for the benefits that were 
not provided due to the sanction imposed under 
paragraph (1). 
‘‘(d) WORK ACTIVATION IS NOT EMPLOYMENT.— 
Participation in work activation activities under this sec-
tion shall not be— 
‘‘(1) considered to be employment; or 
‘‘(2) subject to any law pertaining to wages, 
compensation, hours, or conditions of employment 
under any law administered by the Secretary of 
Labor. 
‘‘(e) WORK ACTIVATION PROGRAM.— 
‘‘(1) PROGRAM.—Each State participating in 
the supplemental nutrition assistance program shall 
carry out a work activation program. 
‘‘(2) PURPOSE.— 
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‘‘(A) IN
GENERAL.—The goals of each 
work activation program shall be— 
‘‘(i) to encourage and assist able-bod-
ied, work-capable adult recipients of sup-
plemental nutrition assistance to obtain 
paid employment; 
‘‘(ii) to reduce dependence on govern-
ment assistance; and 
‘‘(iii) to ensure that able-bodied, work- 
capable adult recipients of supplemental 
nutrition assistance make a contribution to 
society and the taxpayers in exchange for 
assistance received. 
‘‘(B) REQUIREMENT.—To accomplish the 
goals described in subparagraph (A), each State 
shall require able-bodied, work-capable adult re-
cipients of supplemental nutrition assistance 
who are unemployed or under-employed to en-
gage in work activation. 
‘‘(3) REQUIRED STATE WORK ACTIVATION PAR-
TICIPATION RATES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (D), each State that receives supple-
mental nutrition assistance program funding 
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shall be required to meet, for the work activa-
tion programs of the State— 
‘‘(i) a work activation participation 
rate for work-capable adults without de-
pendent children, as described in subpara-
graph (B); and 
‘‘(ii) a work activation participation 
rate for program eligible family units as 
described in subparagraph (C). 
‘‘(B) PARTICIPATION RATE FOR WORK-CA-
PABLE
ADULTS
WITHOUT
DEPENDENT
CHIL-
DREN.—The average monthly percent of pro-
gram-eligible work-capable without dependent 
children who shall be required to maintain full 
engagement in work activation under subpara-
graph (A)(i) shall be— 
‘‘(i) for each performance measure-
ment period in fiscal year 2015, 30 percent 
of all program-eligible adults without de-
pendent children; 
‘‘(ii) for each performance measure-
ment period in fiscal year 2016, 50 percent 
of all program-eligible adults without de-
pendent children who are eligible for work 
activation; and 
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‘‘(iii) for each performance measure-
ment period in fiscal year 2017 and each 
subsequent fiscal year, 85 percent of all 
program-eligible adults without dependent 
children who are eligible for work activa-
tion. 
‘‘(C) PARTICIPATION RATE FOR PROGRAM- 
ELIGIBLE
FAMILY
UNITS
WITH
DEPENDENT 
CHILDREN.— 
‘‘(i) REQUIREMENTS.—Subject to the 
limitation in clause (ii), the average 
monthly percent of program-eligible family 
units with dependent children that shall be 
required to maintain full engagement in 
work activation in a given month shall 
be— 
‘‘(I) for each performance meas-
urement period in fiscal year 2017, 15 
percent of program-eligible family 
units with dependent children; and 
‘‘(II) for each performance meas-
urement period in fiscal year 2018 
and subsequent years, the sum of— 
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‘‘(aa) 15 percent of percent 
of program-eligible family units 
with dependent children, plus 
‘‘(bb) the percent of pro-
gram-eligible family units with 
dependent children that equals 
the contingency factor for the 
State for that year. 
‘‘(ii) 
LIMITATION.—Notwithstanding 
clause (i), no State shall be required to 
maintain an average monthly rate of full 
engagement in work activation by pro-
gram-eligible family units with dependent 
children, in either performance measure-
ment period in a fiscal year, that exceeds 
the following: 
‘‘(I) In fiscal year 2017, 15 per-
cent of program-eligible family units 
with dependent children. 
‘‘(II) In fiscal year 2018, 25 per-
cent of program-eligible family units 
with dependent children. 
‘‘(III) In fiscal year 2019, 35 
percent of program-eligible family 
units with dependent children. 
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‘‘(IV) In fiscal year 2020, 50 
percent of program-eligible family 
units with dependent children. 
‘‘(D) HIGHER LEVELS OF WORK ACTIVA-
TION AT STATE DISCRETION.—Nothing in this 
law shall be construed to prohibit a State from 
maintaining levels of work activation that are 
higher than those specified subparagraph (B) or 
(C). 
‘‘(4) COUNTING FULL ENGAGEMENT IN WORK 
ACTIVATION FOR PURPOSES OF MEASURING STATE 
COMPLIANCE WITH PARTICIPATION RATES.— 
‘‘(A) IN GENERAL.—For purposes of deter-
mining the compliance of a State with the par-
ticipation rate standards in paragraph (3), a 
State shall count in each month the number of 
program-eligible family units that maintained 
full engagement in work activation in that 
month. 
‘‘(B) FULL ENGAGEMENT.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), a family unit shall be 
counted as having maintained full engage-
ment in work activation in a given month 
if the family unit was— 
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‘‘(I) a program-eligible family 
unit that performed sufficient work 
activation in the month to meet the 
work activation standards provided in 
subsection (a) or (b); 
‘‘(II) a family unit that did not 
qualify for supplemental nutrition as-
sistance benefits in a current month 
because of a prior sanction but that 
qualified for a resumption of benefits 
due to work activation performed in 
the month that meets the standards 
provided in subsection (c)(2); or 
‘‘(III) a program-eligible family 
unit that— 
‘‘(aa) received supplemental 
nutrition assistance benefits in a 
given month; 
‘‘(bb) was required by a 
State agency to participate in 
work activation in that month; 
‘‘(cc) failed to perform suffi-
cient work activation in that 
month to meet the standards in 
subsection (a) or (b); and 
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‘‘(dd) was sanctioned by an 
elimination of supplemental nu-
trition assistance benefits in the 
1 or more immediately suc-
ceeding months, in accordance 
with subsection (c)(1). 
‘‘(ii) LIMITATION.— 
‘‘(I) IN GENERAL.—For purposes 
of clause (i)(III), a family unit that 
was required to participate in work 
activation but failed to perform suffi-
cient activity to meet the standard 
shall be counted as having maintained 
full engagement in work activation 
only in the first month of noncompli-
ance. 
‘‘(II) SUBSEQUENT
MONTHS.— 
Except as provided in clause (i)(II), 
the family unit shall not be counted as 
maintaining full engagement in work 
activation in any subsequent month in 
which the family unit was subject to 
the sanction for noncompliance. 
‘‘(C) 
BENEFITS
PREVIOUSLY
TERMI-
NATED.—Except as provided in subparagraph 
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(B)(i)(II) concerning family units that qualify 
for resumption of benefits, a family unit that 
does not receive supplemental nutrition assist-
ance benefits in a given month because the ben-
efits of the family unit have been previously ter-
minated in accordance with subsection (c)(1) 
shall not be counted in that month— 
‘‘(i) as a family unit that has main-
tained full engagement in work activation; 
or 
‘‘(ii) as a program-eligible family unit. 
‘‘(5) PENALTIES FOR INADEQUATE STATE PER-
FORMANCE.— 
‘‘(A) REQUIREMENT.— 
‘‘(i) IN GENERAL.—Beginning in fis-
cal year 2015 and for each subsequent fis-
cal year, each State shall count the month-
ly average number of program-eligible fam-
ily units that maintain full engagement in 
work activation during each performance 
measurement period. 
‘‘(ii) REDUCTION IN FUNDING.—If the 
monthly average number of program-eligi-
ble family units that maintain full engage-
ment in a State is not sufficient to fulfill 
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1 or both of the relevant performance 
standards in subparagraphs (B) and (C) of 
paragraph (3) during a performance meas-
urement period (subject to the limitation in 
paragraph (3)(D)), the Federal supple-
mental nutrition assistance program fund-
ing for the State shall be reduced for the 
entire penalty period that commences 12 
months after the commencement of the rel-
evant performance measurement period. 
‘‘(B) SCHEDULE
OF
FUNDING
REDUC-
TIONS.— 
‘‘(i) IN
GENERAL.—The funding re-
duction for a State under subparagraph 
(A) shall be determined by the number of 
consecutive performance measurement pe-
riods during which the State has failed to 
meet 1 or both of the relevant work activa-
tion participation rates under subpara-
graphs (B) and (C) of paragraph (3) (sub-
ject to paragraph (3)(D)). 
‘‘(ii) FAILURE.—If any State fails to 
maintain a monthly average number of 
program-eligible family units that maintain 
full engagement in work activation during 
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a performance measurement period that 
fulfills 1 or both of the relevant perform-
ance standards under subparagraphs (B) 
and (C) of paragraph (3) (subject to para-
graph (3)(D))— 
‘‘(I) for a single, nonconsecutive 
performance measurement period, the 
Federal supplemental nutrition assist-
ance program funding for the State 
shall be reduced by 20 percent of the 
normal funding allotment of the State 
for the penalty period that commences 
12 months after the relevant perform-
ance measurement period; 
‘‘(II) for 2 consecutive perform-
ance measurement periods, the Fed-
eral supplemental nutrition assistance 
program funding for the State shall 
be reduced by 30 percent of the nor-
mal funding allotment of the State for 
the penalty period that commences 12 
months after the relevant performance 
measurement period; 
‘‘(III) for 3 consecutive perform-
ance measurement periods, the Fed-
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eral supplemental nutrition assistance 
program funding for the State shall 
be reduced by 40 percent of the nor-
mal funding allotment of the State for 
the penalty period that commences 12 
months after the relevant performance 
measurement period; 
‘‘(IV) for 4 consecutive perform-
ance measurement periods, the Fed-
eral supplemental nutrition assistance 
program funding for the State shall 
be reduced by 50 percent of the nor-
mal funding allotment of the State for 
the penalty period that commences 12 
months after the relevant performance 
measurement period; 
‘‘(V) for 5 consecutive perform-
ance measurement periods, the Fed-
eral supplemental nutrition assistance 
program funding for the State shall 
be reduced by 70 percent of the nor-
mal funding allotment of the State for 
the penalty period that commences 12 
months after the relevant performance 
measurement period; and 
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‘‘(VI) for 6 or more consecutive 
performance 
measurement 
periods, 
the Federal supplemental nutrition as-
sistance program funding for the 
State shall be reduced by 100 percent 
of the normal funding allotment of the 
State for the penalty period that com-
mences 12 months after the relevant 
performance measurement period. 
‘‘(C) RESTORATION IN FUNDING RESULT-
ING FROM IMPROVED STATE PERFORMANCE.— 
‘‘(i) IN GENERAL.—Subject to clause 
(iii), if a State maintains a monthly aver-
age number of program-eligible family 
units that maintain full engagement in 
work activation that is sufficient to fulfill 
the relevant performance standards de-
scribed in subparagraphs (B) and (C) of 
paragraph (3), subject to the limitation in 
paragraph (3)(D) for 1 nonconsecutive 
performance measurement period, the Fed-
eral 
supplemental 
nutrition 
assistance 
funding for the State for the next penalty 
period shall equal 1⁄2 of the sum of— 
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‘‘(I) the normal funding allot-
ment of the State for the performance 
measurement period; and 
‘‘(II) the funding allotment of the 
State for the previous penalty period. 
‘‘(ii) SUBSEQUENT PERIODS.—Subject 
to clause (iii), if a State maintains a 
monthly average number of program-eligi-
ble family units who maintain full engage-
ment in work activation that is sufficient 
to fulfill the relevant performance stand-
ards described in subparagraphs (B) and 
(C) of paragraph (3), subject to the limita-
tion in paragraph (3)(D) for 2 consecutive 
performance measurement periods, the 
Federal supplemental nutrition assistance 
funding for the State shall equal 100 per-
cent of the normal funding allotment of 
the State for the next penalty period. 
‘‘(iii) LIMITATION.—Notwithstanding 
clauses (i) and (ii), no State shall receive 
more than 100 percent of the normal fund-
ing allotment of the State due to the provi-
sions of this paragraph. 
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‘‘(6) REWARDS TO STATES FOR REDUCING GOV-
ERNMENT DEPENDENCE.— 
‘‘(A) IN GENERAL.—If, in any future year, 
a State reduces the supplemental nutrition as-
sistance caseload of the State below the levels 
that existed in calendar year 2006, the State 
shall receive a financial reward for reducing de-
pendence. 
‘‘(B) AMOUNT.—The reward shall equal 1⁄4 
of the savings to the Federal Government for 
that year that resulted from the caseload reduc-
tion. 
‘‘(C) USE OF REWARD.—A State may use 
reward funding under this paragraph for any 
purpose chosen by the State that— 
‘‘(i) provides benefits or services to in-
dividuals with incomes below 200 percent 
of the Federal poverty level; 
‘‘(ii) improves social outcomes in low- 
income populations; 
‘‘(iii) encourages healthy marriage; or 
‘‘(iv) increases self-sufficiency and re-
duces dependence. 
‘‘(7) AUTHORIZATION OF FUNDING.— 
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‘‘(A) IN GENERAL.—There is authorized to 
be appropriated to the Secretary to provide 
funds to State governments for the purpose of 
carrying out work activation programs in ac-
cordance with this section $500,000,000 for fis-
cal year 2014 and each subsequent fiscal year. 
‘‘(B) ALLOCATION
AMONG
STATES.—The 
total amount appropriated under subparagraph 
(A) for a fiscal year shall be allocated among 
the States in accordance with the proportion of 
each State’s share of total funding for the sup-
plemental nutrition assistance program under 
this Act in fiscal year 2007. 
‘‘(C) ADDITIONAL FUNDING.— 
‘‘(i) TANF FUNDING.— 
‘‘(I) 
IN
GENERAL.—Notwith-
standing any other provision of law, in 
fiscal year 2014 and each subsequent 
fiscal year, a State that receives sup-
plemental nutrition assistance funds 
may spend, in that fiscal year to ad-
minister the work activation program 
of the State under this section, up 
to— 
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‘‘(aa) 30 percent of the Fed-
eral funds available to the State 
through the program of block 
grants to States for temporary 
assistance for needy families es-
tablished under part A of title IV 
of the Social Security Act (42 
U.S.C. 601 et seq.) in that fiscal 
year; and 
‘‘(bb) 30 percent of funds 
from State sources allocated to 
the operation of the program de-
scribed in item (aa). 
‘‘(II) EFFECT.—Any State that 
uses State funds allocated to the pro-
gram of block grants to States for 
temporary assistance for needy fami-
lies established under part A of title 
IV of the Social Security Act (42 
U.S.C. 601 et seq.) to administer the 
work activation program under this 
section may count those funds for 
purposes of meeting the maintenance 
of effort requirement of the State 
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under that program of block grants in 
that fiscal year. 
‘‘(ii) WORKFORCE
INVESTMENT
ACT 
FUNDING.—Notwithstanding 
any 
other 
provision of law, in fiscal year 2014 and 
each subsequent fiscal year, a State that 
receives Federal funds under the Work-
force Investment Act of 1998 (29 U.S.C. 
2801 et seq.) may spend up to 50 of those 
funds to administer the work activation 
program under this section.’’. 
(j) CONFORMING AMENDMENTS.— 
(1) Section 5 of the Food and Nutrition Act of 
2008 (7 U.S.C. 2014) is amended— 
(A) in subsection (a), in the second sen-
tence, by striking ‘‘, 6(d)(2),’’; 
(B) in subsection (d)(14), by striking ‘‘sec-
tion 6(d)(4)(I)’’ and inserting ‘‘section 29’’; 
(C) in subsection (e)(3)(B)(ii), by striking 
‘‘subsection (d)(3)’’ and inserting ‘‘section 29’’; 
and 
(D) in the first sentence of subsection 
(g)(3), by striking ‘‘section 6(d)’’ and inserting 
‘‘section 29’’. 
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(2) Section 7(i)(1) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2016(i)(1)) is amended by 
striking ‘‘section 6(o)(2)’’ and inserting ‘‘section 
6(o)’’. 
(3) Section 11(e) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2020(e)) is amended— 
(A) by striking paragraph (19); and 
(B) by redesignating paragraphs (20) 
through (23) as paragraphs (19) through (22), 
respectively. 
(4) Section 16 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2025) is amended— 
(A) in subsection (b)(4), by striking ‘‘sec-
tion 6(d)’’ and inserting ‘‘section 29’’; and 
(B) by striking subsection (h). 
(5) Section 17 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2026) is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(B)(iv)(III)— 
(I) by striking item (bb); and 
(II) by redesignating items (cc) 
through (jj) as items (bb) through 
(ii), respectively; 
(ii) in paragraph (2), by striking the 
second sentence; and 
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(iii) in paragraph (3)(B), in the first 
sentence, by striking ‘‘section 6(d)’’ and 
inserting ‘‘section 29,’’; and 
(B) by striking subsection (g). 
(6) Section 20 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2029) is amended— 
(A) in subsection (b)— 
(i) by striking paragraph (1); and 
(ii) by redesignating paragraphs (2) 
through (6) as paragraphs (1) through (5), 
respectively; 
(B) by striking subsection (f); and 
(C) by redesignating subsection (g) as sub-
section (f). 
(7) Section 22(b) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2031(b)) is amended by strik-
ing paragraph (4). 
(8) Section 26(f)(3)(E) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2036(f)(3)(E)) is amend-
ed by striking ‘‘(22), and (23)’’ and inserting ‘‘(21), 
and (22)’’. 
(9) Section 501(b)(2)(E) of the Workforce In-
vestment Act of 1998 (20 U.S.C. 9271(b)(2)(E)) is 
amended by striking ‘‘section 6(d)’’ and all that fol-
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lows through the end and inserting ‘‘section 29 of 
the Food and Nutrition Act of 2008.’’. 
(10) Section 112(b)(8)(A)(iii) of the Workforce 
Investment 
Act 
of 
1998 
(29 
U.S.C. 
2822(b)(8)(A)(iii)) is amended by striking ‘‘section 
6(d)(4)’’ and all that follows through ‘‘(7 U.S.C. 
2015(d)(4))’’ and inserting ‘‘section 29 of the Food 
and Nutrition Act of 2008’’. 
(11) Section 121(b)(2)(B)(ii) of the Workforce 
Investment 
Act 
of 
1998 
(29 
U.S.C. 
2841(b)(2)(B)(ii)) is amended by striking ‘‘section 
6(d)(4)’’ and all that follows through the end and in-
serting ‘‘section 29 of the Food and Nutrition Act 
of 2008;’’. 
SEC. 102. TERMINATION OF BENEFIT INCREASE. 
Section 101(a)(2) of division A of the American Re-
covery and Reinvestment Act of 2009 (Public Law 111– 
5; 123 Stat. 120; 124 Stat. 2394; 124 Stat. 3265) is 
amended by striking paragraph (2) and inserting the fol-
lowing: 
‘‘(2) TERMINATION.—The authority provided by 
this subsection shall terminate on the date of enact-
ment of the Welfare Reform Act of 2014.’’. 
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TITLE 
II—REPORTING 
OF 
MEANS-TESTED 
WELFARE 
SPENDING 
IN 
PRESIDENT’S 
BUDGET SUBMISSION 
SEC. 201. ADDITIONAL INFORMATION IN PRESIDENT’S 
BUDGET SUBMISSION. 
Section 1105(a) of title 31, United States Code, is 
amended— 
(1) by redesignating the second paragraph des-
ignated as paragraph (37), relating to outdated or 
duplicative plans and reports, as added by section 11 
of the GPRA Modernization Act of 2010 (Public 
Law 111–352; 124 Stat. 3881), as paragraph (39); 
and 
(2) by adding at the end the following: 
‘‘(40) the total level of means-tested welfare 
spending (as defined in section 3 of the Congres-
sional Budget Act of 1974 (2 U.S.C. 622)) by the 
Federal Government and the total level of means- 
tested welfare spending by all State and local gov-
ernments and the Federal Government for the most 
recent fiscal year for which such data is available 
and estimated levels for the fiscal year during which 
the budget submission of the President is made, for 
the fiscal year beginning on October 1 of the cal-
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endar year during which the budget submission is 
made, and for each of the 9 ensuing fiscal years.’’. 
TITLE III—AGGREGATE CAP FOR 
MEANS-TESTED 
WELFARE 
SPENDING 
SEC. 301. DEFINITION OF MEANS-TESTED WELFARE SPEND-
ING. 
Section 3 of the Congressional Budget Act of 1974 
(2 U.S.C. 622) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(12)(A) 
The 
term 
‘means-tested 
welfare 
spending’— 
‘‘(i) means spending for any Federal pro-
gram that is designed to specifically provide as-
sistance or benefits exclusively to low-income 
Americans; 
‘‘(ii) does not include such a program if 
the program— 
‘‘(I) is based on earned eligibility; 
‘‘(II) is not need-based; 
‘‘(III) is a program designed exclu-
sively or primarily for veterans of military 
service; or 
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