this paragraph for each bonus year
equals $100,000,000; and
‘‘(II) the total amount of grants to
be made under this paragraph for all
bonus years equals $500,000,000.
‘‘(E) DEFINITIONS.—In this paragraph:
‘‘(i) BONUS
YEAR.—The term ‘bonus
year’ means each of fiscal years 2004
through 2008.
‘‘(ii) 
EMPLOYMENT
ACHIEVEMENT
STATE.—The term ‘employment achievement
State’ means, with respect to a bonus year,
an eligible State whose performance deter-
mined pursuant to subparagraph (D)(i) for
the fiscal year preceding the bonus year
equals or exceeds the performance standards
prescribed under subparagraph (D)(ii) for
such preceding fiscal year.
‘‘(F) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 2004 through 2008 $500,000,000 for
grants under this paragraph.
‘‘(G) GRANTS
FOR
TRIBAL
ORGANIZA-
TIONS.—This paragraph shall apply with respect
to tribal organizations in the same manner in
which this paragraph applies with respect to
States. In determining the criteria under which
to make grants to tribal organizations under this
paragraph, the Secretary shall consult with trib-
al organizations.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect on October 1, 2003.
SEC. 106. CONTINGENCY FUND.
(a) DEPOSITS INTO FUND.—Section 403(b)(2) (42
U.S.C. 603(b)(2)) is amended—
(1) by striking ‘‘1997, 1998, 1999, 2000, 2001,
and 2002’’ and inserting ‘‘2003 through 2007’’; and
(2) by striking all that follows ‘‘$2,000,000,000’’
and inserting a period.
(b) GRANTS.—Section 403(b)(3)(C)(ii) (42 U.S.C.
603(b)(3)(C)(ii)) is amended by striking ‘‘fiscal years 1997
through 2002’’ and inserting ‘‘fiscal years 2003 through
2007’’.
(c) DEFINITION OF NEEDY STATE.—Clauses (i) and
(ii) of section 403(b)(5)(B) (42 U.S.C. 603(b)(5)(B)) are
amended by inserting after ‘‘1996’’ the following: ‘‘, and
the Food Stamp Act of 1977 as in effect during the cor-
responding 3-month period in the fiscal year preceding such
most recently concluded 3-month period,’’.
(d) ANNUAL RECONCILIATION: FEDERAL MATCHING
OF STATE EXPENDITURES ABOVE ‘‘MAINTENANCE OF EF-
FORT’’ LEVEL.—Section 403(b)(6) (42 U.S.C. 603(b)(6)) is
amended—
(1) in subparagraph (A)(ii)—
(A) by adding ‘‘and’’ at the end of subclause
(I);
(B) by striking ‘‘; and’’ at the end of sub-
clause (II) and inserting a period; and
(C) by striking subclause (III);
(2) in subparagraph (B)(i)(II), by striking all
that follows ‘‘section 409(a)(7)(B)(iii))’’ and inserting
a period;
(3) by amending subparagraph (B)(ii)(I) to read
as follows:
‘‘(I) the qualified State expendi-
tures 
(as 
defined 
in 
section
409(a)(7)(B)(i)) for the fiscal year;
plus’’; and
(4) by striking subparagraph (C).
(e) CONSIDERATION OF CERTAIN CHILD CARE EX-
PENDITURES IN DETERMINING STATE COMPLIANCE WITH
CONTINGENCY FUND MAINTENANCE OF EFFORT REQUIRE-
MENT.—Section 409(a)(10) (42 U.S.C. 609(a)(10)) is
amended—
(1) by striking ‘‘(other than the expenditures de-
scribed in subclause (I)(bb) of that paragraph)) under
the State program funded under this part’’ and in-
serting a close parenthesis; and
(2) by striking ‘‘excluding any amount expended
by the State for child care under subsection (g) or (i)
of section 402 (as in effect during fiscal year 1994)
for fiscal year 1994,’’.
SEC. 107. USE OF FUNDS.
(a) GENERAL RULES.—Section 404(a)(2) (42 U.S.C.
604(a)(2)) is amended by striking ‘‘in any manner that’’
and inserting ‘‘for any purposes or activities for which’’.
(b) TREATMENT OF INTERSTATE IMMIGRANTS.—
(1) 
STATE
PLAN
PROVISION.—Section
402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended by
striking clause (i) and redesignating clauses (ii)
through (iv) as clauses (i) through (iii), respectively.
(2) USE
OF
FUNDS.—Section 404 (42 U.S.C.
604) is amended by striking subsection (c).
(c) INCREASE IN AMOUNT TRANSFERABLE TO CHILD
CARE.—Section 404(d)(1) (42 U.S.C. 604(d)(1)) is amend-
ed by striking ‘‘30’’ and inserting ‘‘50’’.
(d) INCREASE IN AMOUNT TRANSFERABLE TO TITLE
XX 
PROGRAMS.—Section 
404(d)(2)(B) 
(42 
U.S.C.
604(d)(2)(B)) is amended to read as follows:
‘‘(B) APPLICABLE PERCENT.—For purposes
of subparagraph (A), the applicable percent is 10
percent for fiscal year 2003 and each succeeding
fiscal year.’’.
(e) CLARIFICATION OF AUTHORITY OF STATES TO USE
TANF FUNDS CARRIED OVER FROM PRIOR YEARS TO PRO-
VIDE TANF BENEFITS AND SERVICES.—Section 404(e) (42
U.S.C. 604(e)) is amended to read as follows:
‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE CER-
TAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FU-
TURE CONTINGENCIES.—
‘‘(1) CARRYOVER.—A State or tribe may use a
grant made to the State or tribe under this part for
any fiscal year to provide, without fiscal year limita-
tion, any benefit or service that may be provided
under the State or tribal program funded under this
part.
‘‘(2) CONTINGENCY RESERVE.—A State or tribe
may designate any portion of a grant made to the
State or tribe under this part as a contingency re-
serve for future needs, and may use any amount so
designated to provide, without fiscal year limitation,
any benefit or service that may be provided under the
State or tribal program funded under this part. If a
State or tribe so designates a portion of such a grant,
the State shall, on an annual basis, include in its re-
port under section 411(a) the amount so designated.’’.
SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE
PROGRAMS.
(a) REPEAL.—Section 406 (42 U.S.C. 606) is repealed.
(b) CONFORMING AMENDMENTS.—
(1) Section 409(a) (42 U.S.C. 609(a)) is amend-
ed by striking paragraph (6).
(2) Section 412 (42 U.S.C. 612) is amended by
striking subsection (f) and redesignating subsections
(g) through (i) as subsections (f) through (h), respec-
tively.
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is
amended by striking ‘‘406,’’.
SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-SUF-
FICIENCY PLAN REQUIREMENTS.
(a) MODIFICATION OF STATE PLAN REQUIREMENTS.—
Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended
by striking clauses (ii) and (iii) and inserting the following:
‘‘(ii) Require a parent or caretaker re-
ceiving assistance under the program to en-
gage in work or alternative self-sufficiency
activities (as defined by the State), con-
sistent with section 407(e)(2).
‘‘(iii) Require families receiving assist-
ance under the program to engage in activi-
ties in accordance with family self-suffi-
ciency plans developed pursuant to section
408(b).’’.
(b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY
PLANS.—
(1) IN
GENERAL.—Section 408(b) (42 U.S.C.
608(b)) is amended to read as follows:
‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.—
‘‘(1) IN GENERAL.—A State to which a grant is
made under section 403 shall—
‘‘(A) make an initial assessment, in the
manner deemed appropriate by the State, of the
skills, prior work experience, and employability
of each recipient of assistance under the pro-
gram;
‘‘(B) establish for each family that includes
a work-eligible individual receiving assistance
under the State program funded under this part
a self-sufficiency plan that specifies appropriate
activities described in the State plan submitted
pursuant to section 402, including direct work
activities as appropriate designed to assist the
family in achieving their maximum degree of
self-sufficiency, and that provides for the ongoing
participation of the individual in the activities;
‘‘(C) require, at a minimum, each member
of the family who is a work-eligible individual
(as defined in section 407(b)(2)(C)) to partici-
pate in activities in accordance with the self-suf-
ficiency plan;
‘‘(D) monitor the participation of such fam-
ily members in the activities and the progress of
the family toward self-sufficiency;
‘‘(E) regularly review the self-sufficiency
plan; and
‘‘(F) revise the self-sufficiency plan as ap-
propriate.
‘‘(2) TIMING.—The State shall comply with
paragraph (1) with respect to a family—
‘‘(A) in the case of a family that, as of Oc-
tober 1, 2002, is not receiving assistance from
the State program funded under this part, not
later than 60 days after the family first receives
assistance on the basis of the most recent appli-
cation for the assistance; or
‘‘(B) in the case of a family that, as of such
date, is receiving the assistance, not later than
12 months after the date of the enactment of this
subsection.’’.
(2) PENALTY FOR FAILURE TO ESTABLISH FAM-
ILY SELF-SUFFICIENCY PLAN.—Section 409(a)(3) (42
U.S.C. 609(a)(3)) is amended—
(A) in the paragraph heading, by inserting
‘‘OR
ESTABLISH
FAMILY
SELF-SUFFICIENCY
PLAN’’ after ‘‘RATES’’; and
(B) in subparagraph (A), by inserting ‘‘or
408(b)’’ after ‘‘407(a)’’.
SEC. 110. WORK PARTICIPATION REQUIREMENTS.
(a) IN GENERAL.—Section 407 (42 U.S.C. 607) is
amended by striking all that precedes subsection (b)(3) and
inserting the following:
‘‘SEC. 407. WORK PARTICIPATION REQUIREMENTS.
‘‘(a) PARTICIPATION RATE REQUIREMENTS.—A State
to which a grant is made under section 403 for a fiscal
year shall achieve a minimum participation rate equal to
not less than—
‘‘(1) 50 percent for fiscal year 2003;
‘‘(2) 55 percent for fiscal year 2004;
‘‘(3) 60 percent for fiscal year 2005;
‘‘(4) 65 percent for fiscal year 2006; and
‘‘(5) 70 percent for fiscal year 2007 and each
succeeding fiscal year.
‘‘(b) CALCULATION OF PARTICIPATION RATES.—
‘‘(1) AVERAGE MONTHLY RATE.—For purposes of
subsection (a), the participation rate of a State for a
fiscal year is the average of the participation rates of
the State for each month in the fiscal year.
‘‘(2) MONTHLY PARTICIPATION RATES; INCORPO-
RATION OF 40-HOUR WORK WEEK STANDARD.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the participation rate of a State for
a month is—
‘‘(i) the total number of countable
hours (as defined in subsection (c)) with re-
spect to the counted families for the State
for the month; divided by
‘‘(ii) 160 multiplied by the number of
counted families for the State for the month.
‘‘(B) COUNTED FAMILIES DEFINED.—
‘‘(i) IN
GENERAL.—In subparagraph
(A), the term ‘counted family’ means, with
respect to a State and a month, a family
that includes a work-eligible individual and
that receives assistance in the month under
the State program funded under this part,
subject to clause (ii).
‘‘(ii) STATE OPTION TO EXCLUDE CER-
TAIN FAMILIES.—At the option of a State,
the 
term 
‘counted 
family’ 
shall 
not
include—
‘‘(I) a family in the first month
for which the family receives assistance
from a State program funded under
this part on the basis of the most re-
cent application for such assistance; or
‘‘(II) on a case-by-case basis, a
family in which the youngest child has
not attained 12 months of age.
‘‘(iii) STATE OPTION TO INCLUDE INDI-
VIDUALS RECEIVING ASSISTANCE UNDER A
TRIBAL FAMILY ASSISTANCE PLAN OR TRIB-
AL
WORK
PROGRAM.—At the option of a
State, the term ‘counted family’ may in-
clude families in the State that are receiv-
ing assistance under a tribal family assist-
ance plan approved under section 412 or
under a tribal work program to which
funds are provided under this part.
‘‘(C) 
WORK-ELIGIBLE
INDIVIDUAL
DE-
FINED.—In this section, the term ‘work-eligible
individual’ means an individual—
‘‘(i) who is married or a single head of
household; and
‘‘(ii) whose needs are (or, but for sanc-
tions under this part that have been in ef-
fect for more than 3 months (whether or not
consecutive) in the preceding 12 months or
under part D, would be) included in deter-
mining the amount of cash assistance to be
provided to the family under the State pro-
gram funded under this part.’’.
(b) RECALIBRATION OF CASELOAD REDUCTION CRED-
IT.—Section 407(b)(3)(A)(ii) (42 U.S.C. 607(b)(3)(A)(ii))
is amended to read as follows:
‘‘(ii) the average monthly number of
families that received assistance under the
State program funded under this part
during—
‘‘(I) if the fiscal year is fiscal
year 2003, fiscal year 1996;
‘‘(II) if the fiscal year is fiscal
year 2004, fiscal year 1998;
‘‘(III) if the fiscal year is fiscal
year 2005, fiscal year 2001;
‘‘(IV) if the fiscal year is fiscal
year 2006, fiscal year 2002; or
‘‘(V) if the fiscal year is fiscal
year 2007, fiscal year 2003.’’.
(c) SUPERACHIEVER CREDIT.—Section 407(b) (42
U.S.C. 607(b)) is amended by striking paragraphs (4) and
(5) and inserting the following:
‘‘(4) SUPERACHIEVER CREDIT.—
‘‘(A) IN GENERAL.—The participation rate,
determined under paragraphs (1) and (2) of this
subsection, of a superachiever State for a fiscal
year shall be increased by the lesser of—
‘‘(i) the amount (if any) of the super-
achiever credit applicable to the State; or
‘‘(ii) the number of percentage points
(if any) by which the minimum participa-
tion rate required by subsection (a) for the
fiscal year exceeds 50 percent.
‘‘(B) SUPERACHIEVER
STATE.—For pur-
poses of subparagraph (A), a State is a super-
achiever State if the State caseload for fiscal
year 2001 has declined by at least 60 percent
from the State caseload for fiscal year 1995.
‘‘(C) AMOUNT
OF
CREDIT.—The super-
achiever credit applicable to a State is the num-
ber of percentage points (if any) by which the de-
cline referred to in subparagraph (B) exceeds 60
percent.
‘‘(D) DEFINITIONS.—In this paragraph:
‘‘(i) STATE
CASELOAD
FOR
FISCAL
YEAR 2001.—The term ‘State caseload for
fiscal year 2001’ means the average monthly
number of families that received assistance
during fiscal year 2001 under the State
program funded under this part.
‘‘(ii) STATE
CASELOAD
FOR
FISCAL
YEAR 1995.—The term ‘State caseload for
fiscal year 1995’ means the average monthly
number of families that received aid under
the State plan approved under part A (as
in effect on September 30, 1995) during fis-
cal year 1995.’’.
(d) COUNTABLE HOURS.—Section 407 of such Act (42
U.S.C. 607) is amended by striking subsections (c) and (d)
and inserting the following:
‘‘(c) COUNTABLE HOURS.—
‘‘(1) DEFINITION.—In subsection (b)(2), the term
‘countable hours’ means, with respect to a family for
a month, the total number of hours in the month in
which any member of the family who is a work-eligi-
ble individual is engaged in a direct work activity or
other activities specified by the State (excluding an
activity that does not address a purpose specified in
section 401(a)), subject to the other provisions of this
subsection.
‘‘(2) LIMITATIONS.—Subject to such regulations
as the Secretary may prescribe:
‘‘(A) MINIMUM
WEEKLY
AVERAGE
OF
HOURS
OF
DIRECT
WORK
ACTIVITIES
RE-
QUIRED.—If the work-eligible individuals in a
family are engaged in a direct work activity for
an average total of fewer than 24 hours per week
in a month, then the number of countable hours
with respect to the family for the month shall be
zero.
‘‘(B) MAXIMUM
WEEKLY
AVERAGE
OF
HOURS OF OTHER ACTIVITIES.—An average of
not more than 16 hours per week of activities
specified by the State (subject to the exclusion de-
scribed in paragraph (1)) may be considered
countable hours in a month with respect to a
family.
‘‘(3) SPECIAL
RULES.—For purposes of para-
graph (1):
‘‘(A) PARTICIPATION IN QUALIFIED ACTIVI-
TIES.—
‘‘(i) IN
GENERAL.—If, with the ap-
proval of the State, the work-eligible indi-
viduals in a family are engaged in 1 or
more qualified activities for an average
total of at least 24 hours per week in a
month, then all such engagement in the
month shall be considered engagement in a
direct work activity, subject to clause (iii).
‘‘(ii) QUALIFIED ACTIVITY DEFINED.—
The term ‘qualified activity’ means an ac-
tivity specified by the State (subject to the
exclusion described in paragraph (1)) that
meets such standards and criteria as the
State may specify, including—
‘‘(I) substance abuse counseling or
treatment;
‘‘(II) rehabilitation treatment and
services;
‘‘(III) work-related education or
training directed effectively at enabling
the family member to work; or
‘‘(IV) job search or job readiness
assistance.
‘‘(iii) LIMITATION.—
of household, who has not attained 20 years of
age, and the individual—
‘‘(i) maintains satisfactory attendance
at secondary school or the equivalent in the
month; or
‘‘(ii) participates in education directly
related to employment for an average of at
least 20 hours per week in the month.
‘‘(d) DIRECT WORK ACTIVITY.—In this section, the
term ‘direct work activity’ means—
‘‘(1) unsubsidized employment;
‘‘(2) subsidized private sector employment;
‘‘(3) subsidized public sector employment;
‘‘(4) on-the-job training;
‘‘(5) supervised work experience; or
‘‘(6) supervised community service.’’.
(e) 
PENALTIES
AGAINST
INDIVIDUALS.—Section
407(e)(1) (42 U.S.C. 607(e)(1)) is amended to read as fol-
lows:
‘‘(1) REDUCTION OR TERMINATION OF ASSIST-
ANCE.—
‘‘(A) IN GENERAL.—Except as provided in
paragraph (2), if an individual in a family re-
ceiving assistance under a State program funded
under this part fails to engage in activities re-
quired in accordance with this section, or other
activities required by the State under the pro-
gram, and the family does not otherwise engage
in activities in accordance with the self-suffi-
ciency plan established for the family pursuant
to section 408(b), the State shall—
‘‘(i) if the failure is partial or persists
for not more than 1 month—
‘‘(I) reduce the amount of assist-
ance otherwise payable to the family
pro rata (or more, at the option of the
State) with respect to any period dur-
ing a month in which the failure oc-
curs; or
‘‘(II) terminate all assistance to
the family, subject to such good cause
exceptions as the State may establish;
or
‘‘(ii) if the failure is total and persists
for at least 2 consecutive months, terminate
all cash payments to the family including
qualified State expenditures (as defined in
section 409(a)(7)(B)(i)) for at least 1 month
and thereafter until the individual resumes
full participation in the activities, subject
to such good cause exceptions as the State
may establish.
‘‘(B) SPECIAL RULE.—In the event of a con-
flict between a requirement of clause (i)(II) or
(ii) of subparagraph (A) and a requirement of a
State constitution to provide assistance to needy
parents and children, the State constitutional re-
quirement shall control.’’.
(f) CONFORMING AMENDMENTS.—
(1) 
Section 
404(k)(1)(D) 
(42 
U.S.C.
604(k)(1)(D)) is amended by striking ‘‘work activities
(as defined in section 407(d)’’ and inserting ‘‘direct
work activities’’.
(2) Section 407(f) (42 U.S.C. 607(f)) is amended
in each of paragraphs (1) and (2) by striking ‘‘work
activity described in subsection (d)’’ and inserting
‘‘direct work activity’’.
(3) The heading of section 409(a)(14) (42 U.S.C.
609(a)(14)) is amended by inserting ‘‘OR REFUSING
TO ENGAGE IN ACTIVITIES UNDER A FAMILY SELF-
SUFFICIENCY PLAN’’ after ‘‘WORK’’.
SEC. 111. MAINTENANCE OF EFFORT.
(a) IN
GENERAL.—Section 409(a)(7) (42 U.S.C.
609(a)(7)) is amended—
(1) in subparagraph (A) by striking ‘‘fiscal year
1998, 1999, 2000, 2001, 2002, or 2003’’ and inserting
‘‘fiscal year 2003, 2004, 2005, 2006, 2007 or 2008’’;
and
(2) in subparagraph (B)(ii)—
(A) by inserting ‘‘preceding’’ before ‘‘fiscal
year’’; and
(B) by striking ‘‘for fiscal years 1997
through 2002,’’.
(b) STATE SPENDING ON PROMOTING HEALTHY MAR-
RIAGE.—
(1) IN GENERAL.—Section 404 (42 U.S.C. 604)
is amended by adding at the end the following:
‘‘(l) MARRIAGE PROMOTION.—A State, territory, or
tribal organization to which a grant is made under section
403(a)(2) may use a grant made to the State, territory, or
tribal organization under any other provision of section 403
for marriage promotion activities, and the amount of any
such grant so used shall be considered State funds for pur-
poses of section 403(a)(2).’’.
(2) FEDERAL TANF FUNDS USED FOR MARRIAGE
PROMOTION DISREGARDED FOR PURPOSES OF MAIN-
TENANCE
OF
EFFORT
REQUIREMENT.—Section
409(a)(7)(B)(i) 
(42 
U.S.C. 
609(a)(7)(B)(i)), 
as
amended by section 103(c) of this Act, is amended by
adding at the end the following:
‘‘(VI) EXCLUSION
OF
FEDERAL
TANF
FUNDS
USED
FOR
MARRIAGE
PROMOTION
ACTIVITIES.—Such term
does not include the amount of any
grant made to the State under section
403 that is expended for a marriage
promotion activity.’’.
SEC. 112. PERFORMANCE IMPROVEMENT.
(a) STATE PLANS.—Section 402(a) (42 U.S.C. 602(a))
is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by redesignating clauses (vi) and
(vii) (as added by section 103(a) of this
Act) as clauses (vii) and (viii); and
(ii) by striking clause (v) and insert-
ing the following:
‘‘(v) Establish annual, specific numer-
ical performance goals, measures, measure-
ment methodology, and plans to improve
outcomes with respect to each of the 4 pro-
gram purposes described in section 401(a).
‘‘(vi) Describe any strategies the State
may be undertaking to address—
‘‘(I) employment retention and
advancement for recipients of assist-
ance under the program, including
placement into high-demand jobs, con-
sistent with the criteria used by the
Secretary in establishing performance
targets in regulations prescribed under
section 403(a)(4)(B);
‘‘(II) efforts to reduce teen preg-
nancy;
‘‘(III) services for struggling and
noncompliant families, and for clients
with special problems; and
‘‘(IV) program integration, in-
cluding the extent to which employ-
ment and training services under the
program are provided through the One-
Stop Career Center System created
under the Workforce Investment Act of
1998, and the extent to which former
recipients of such assistance have ac-
cess to additional core, intensive, or
training services funded through such
Act.’’; and
(B) in subparagraph (B), by striking clause
(iii) (as so redesignated by section 107(b)(1) of
this Act) and inserting the following:
‘‘(iii) The document shall describe
strategies and programs the State is under-
taking to engage religious organizations in
the provision of services funded under this
part and efforts related to section 104 of the
Personal Responsibility and Work Oppor-
tunity Reconcilation Act of 1996.
‘‘(iv) The document shall describe
strategies to improve program management
and performance.’’; and
(2) in paragraph (4), by inserting ‘‘and tribal’’
after ‘‘that local’’.
(b) CONSULTATION WITH STATE REGARDING PLAN
AND DESIGN OF TRIBAL PROGRAMS.—Section 412(b)(1)
(42 U.S.C. 612(b)(1)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by striking the period at the end of subpara-
graph (F) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(G) provides an assurance that the State
in which the tribe is located has been consulted
regarding the plan and its design.’’.
(c) PERFORMANCE
MEASURES.—Section 413 (42
U.S.C. 613) is amended by adding at the end the following:
‘‘(k) PERFORMANCE IMPROVEMENT.—The Secretary,
in consultation with the National Governors’ Association,
the National Conference of State Legislatures, and the
American Public Human Services Association, shall de-
velop uniform performance measures designed to assess the
degree of effectiveness, and the degree of improvement, of
State programs funded under this part in accomplishing
the purposes of this part.’’.
(d) ANNUAL RANKING OF STATES.—Section 413(d)(1)
(42 U.S.C. 613(d)(1)) is amended by striking ‘‘long-term
private sector jobs’’ and inserting ‘‘private sector jobs, the
success of the recipients in retaining employment, the abil-
ity of the recipients to increase their wages’’.
SEC. 113. DATA COLLECTION AND REPORTING.
(a) CONTENTS OF REPORT.— Section 411(a)(1)(A)
(42 U.S.C. 611(a)(1)(A)) is amended—
(1) in clause (vii), by inserting ‘‘and minor par-
ent’’ after ‘‘of each adult’’;
(2) in clause (viii), by striking ‘‘and educational
level’’;
(3) in clause (ix), by striking ‘‘, and if the latter
2, the amount received’’;
(4) in clause (x)—
(A) by striking ‘‘each type of’’; and
(B) by inserting before the period ‘‘and, if
applicable, the reason for receipt of the assistance
for a total of more than 60 months’’;
(5) in clause (xi), by striking the subclauses and
inserting the following:
‘‘(I) Subsidized private sector em-
ployment.
‘‘(II) Unsubsidized employment.
‘‘(III) Public sector employment,
supervised work experience, or super-
vised community service.
‘‘(IV) On-the-job training.
‘‘(V) Job search and placement.
‘‘(VI) Training.
‘‘(VII) Education.
‘‘(VIII) Other activities directed
at the purposes of this part, as speci-
fied in the State plan submitted pursu-
ant to section 402.’’;
(6) in clause (xii), by inserting ‘‘and progress to-
ward universal engagement’’ after ‘‘participation
rates’’;
(7) in clause (xiii), by striking ‘‘type and’’ before
‘‘amount of assistance’’;
(8) in clause (xvi), by striking subclause (II)
and redesignating subclauses (III) through (V) as sub-
clauses (II) through (IV), respectively; and
(9) by adding at the end the following:
‘‘(xviii) The date the family first re-
ceived assistance from the State program on
the basis of the most recent application for
such assistance.
‘‘(xix) Whether a self-sufficiency plan
is established for the family in accordance
with section 408(b).
‘‘(xx) With respect to any child in the
family, the marital status of the parents at
the birth of the child, and if the parents
were not then married, whether the pater-
nity of the child has been established.’’.
(b) USE
OF SAMPLES.—Section 411(a)(1)(B) (42
U.S.C. 611(a)(1)(B)) is amended—
(1) in clause (i)—
(A) by striking ‘‘a sample’’ and inserting
‘‘samples’’; and
(B) by inserting before the period ‘‘, except
that the Secretary may designate core data ele-
ments that must be reported on all families’’;
and
(2) in clause (ii), by striking ‘‘funded under this
part’’ and inserting ‘‘described in subparagraph (A)’’.
(c) REPORT ON FAMILIES THAT BECOME INELIGIBLE
TO RECEIVE ASSISTANCE.—Section 411(a) (42 U.S.C.
611(a)) is amended—
(1) by striking paragraph (5);
(2) by redesignating paragraph (6) as para-
graph (5); and
(3) by inserting after paragraph (5) (as so redes-
ignated) the following:
‘‘(6) REPORT ON FAMILIES THAT BECOME INELI-
GIBLE TO RECEIVE ASSISTANCE.—The report required
by paragraph (1) for a fiscal quarter shall include for
each month in the quarter the number of families and
total number of individuals that, during the month,
became ineligible to receive assistance under the State
program funded under this part (broken down by the
number of families that become so ineligible due to
earnings, changes in family composition that result
in increased earnings, sanctions, time limits, or other
specified reasons).’’.
(d) REGULATIONS.—Section 411(a)(7) (42 U.S.C.
611(a)(7)) is amended—
(1) by inserting ‘‘and to collect the necessary
data’’ before ‘‘with respect to which reports’’;
(2) by striking ‘‘subsection’’ and inserting ‘‘sec-
tion’’; and
(3) by striking ‘‘in defining the data elements’’
and all that follows and inserting ‘‘, the National
Governors’ Association, the American Public Human
Services Association, the National Conference of State
Legislatures, and others in defining the data ele-
ments.’’.
(e) ADDITIONAL REPORTS BY STATES.—Section 411
(42 U.S.C. 611) is amended—
(1) by redesignating subsection (b) as subsection
(e); and
(2) by inserting after subsection (a) the fol-
lowing:
‘‘(b) ANNUAL REPORTS ON PROGRAM CHARACTERIS-
TICS.—Not later than 90 days after the end of fiscal year
2004 and each succeeding fiscal year, each eligible State
shall submit to the Secretary a report on the characteristics
of the State program funded under this part and other State
programs funded with qualified State expenditures (as de-
fined in section 409(a)(7)(B)(i)). The report shall include,
with respect to each such program, the program name, a
description of program activities, the program purpose, the
program eligibility criteria, the sources of program funding,
the number of program beneficiaries, sanction policies, and
any program work requirements.
‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not later
than 3 months after the end of a calendar month that begins
1 year or more after the enactment of this subsection, each
eligible State shall submit to the Secretary report on the
number of families and total number of individuals receiv-
ing assistance in the calendar month under the State pro-
gram funded under this part.
‘‘(d) ANNUAL REPORT ON PERFORMANCE IMPROVE-
MENT.—Beginning with fiscal year 2004, not later than
January 1 of each fiscal year, each eligible State shall sub-
mit to the Secretary a report on achievement and improve-
ment during the preceding fiscal year under the numerical
performance goals and measures under the State program
funded under this part with respect to each of the matters
described in section 402(a)(1)(A)(v).’’.
(f) ANNUAL REPORTS TO CONGRESS BY THE SEC-
RETARY.—Section 411(e), as so redesignated by subsection
(e) of this section, is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘and each fiscal year thereafter’’ and insert-
ing ‘‘and by July 1 of each fiscal year thereafter’’;
(2) in paragraph (2), by striking ‘‘families ap-
plying for assistance,’’ and by striking the last
comma; and
(3) in paragraph (3), by inserting ‘‘and other
programs funded with qualified State expenditures
(as defined in section 409(a)(7)(B)(i))’’ before the
semicolon.
(g) INCREASED ANALYSIS OF STATE SINGLE AUDIT
REPORTS.—Section 411 (42 U.S.C. 611) is amended by
adding at the end the following:
‘‘(f) INCREASED ANALYSIS OF STATE SINGLE AUDIT
REPORTS.—
‘‘(1) IN
GENERAL.—Within 3 months after a
State submits to the Secretary a report pursuant to
section 7502(a)(1)(A) of title 31, United States Code,
the Secretary shall analyze the report for the purpose
of identifying the extent and nature of problems re-
lated to the oversight by the State of nongovernmental
entities with respect to contracts entered into by such
entities with the State program funded under this
part, and determining what additional actions may
be appropriate to help prevent and correct the prob-
lems.
‘‘(2) INCLUSION OF PROGRAM OVERSIGHT SEC-
TION IN ANNUAL REPORT TO THE CONGRESS.—The
Secretary shall include in each report under sub-
section (a) a section on oversight of State programs
funded under this part, including findings on the ex-
tent and nature of the problems referred to in para-
graph (1), actions taken to resolve the problems, and
to the extent the Secretary deems appropriate make
recommendations on changes needed to resolve the
problems.’’.
SEC. 114. DIRECT FUNDING AND ADMINISTRATION BY IN-
DIAN TRIBES.
(a) TRIBAL FAMILY ASSISTANCE GRANT.—Section
412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by strik-
ing ‘‘1997, 1998, 1999, 2000, 2001, and 2002’’ and insert-
ing ‘‘2003 through 2007’’.
(b) GRANTS
FOR INDIAN TRIBES THAT RECEIVED
JOBS 
FUNDS.—Section 
412(a)(2)(A) 
(42 
U.S.C.
612(a)(2)(A)) is amended by striking ‘‘1997, 1998, 1999,
2000, 2001, and 2002’’ and inserting ‘‘2003 through 2007’’.
SEC. 115. RESEARCH, EVALUATIONS, AND NATIONAL STUD-
IES.
(a) SECRETARY’S FUND FOR RESEARCH, DEMONSTRA-
TIONS, AND TECHNICAL ASSISTANCE.—Section 413 (42
U.S.C. 613), as amended by section 112(c) of this Act, is
further amended by adding at the end the following:
‘‘(l) FUNDING FOR RESEARCH, DEMONSTRATIONS, AND
TECHNICAL ASSISTANCE.—
‘‘(1) IN GENERAL.—Out of any money in the
Treasury of the United States not otherwise appro-
priated, there are appropriated $102,000,000 for each
of fiscal years 2003 through 2007, which shall be
available to the Secretary for the purpose of con-
ducting and supporting research and demonstration
projects by public or private entities, and providing
technical assistance to States, Indian tribal organiza-
tions, and such other entities as the Secretary may
specify that are receiving a grant under this part,
which shall be expended primarily on activities de-
scribed in section 403(a)(2)(B), and which shall be in
addition to any other funds made available under
this part.
‘‘(2) SET ASIDE FOR DEMONSTRATION PROJECTS
FOR COORDINATION OF PROVISION OF CHILD WEL-
FARE AND TANF SERVICES TO TRIBAL FAMILIES AT
RISK OF CHILD ABUSE OR NEGLECT.—
‘‘(A) IN GENERAL.—Of the amounts made
available under paragraph (1) for a fiscal year,
$2,000,000 shall be awarded on a competitive
basis to fund demonstration projects designed to
test the effectiveness of tribal governments or
tribal consortia in coordinating the provision to
tribal families at risk of child abuse or neglect
of child welfare services and services under tribal
programs funded under this part.
‘‘(B) USE
OF
FUNDS.—A grant made to
such a project shall be used—
‘‘(i) to improve case management for
families eligible for assistance from such a
tribal program;
‘‘(ii) for supportive services and assist-
ance to tribal children in out-of-home place-
ments and the tribal families caring for
such children, including families who adopt
such children; and
‘‘(iii) for prevention services and as-
sistance to tribal families at risk of child
abuse and neglect.
‘‘(C) REPORTS.—The Secretary may require
a recipient of funds awarded under this para-
graph to provide the Secretary with such infor-
mation as the Secretary deems relevant to enable
the Secretary to facilitate and oversee the admin-
istration of any project for which funds are pro-
vided under this paragraph.’’.
(b) FUNDING OF STUDIES AND DEMONSTRATIONS.—
Section 413(h)(1) (42 U.S.C. 613(h)(1)) is amended in the
matter preceding subparagraph (A) by striking ‘‘1997
through 2002’’ and inserting ‘‘2003 through 2007’’.
(c) REPORT ON ENFORCEMENT OF CERTAIN AFFIDA-
VITS OF SUPPORT AND SPONSOR DEEMING.—Not later than
March 31, 2004, the Secretary of Health and Human Serv-
ices, in consultation with the Attorney General, shall sub-
mit to the Congress a report on the enforcement of affidavits
of support and sponsor deeming as required by section 421,
422, and 432 of the Personal Responsibility and Work Op-
portunity Reconciliation Act of 1996.
SEC. 116. 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 a new longitudinal survey of program dynam-
ics, 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 information as
may be necessary to examine the issues of out-of-wedlock
childbearing, marriage, welfare dependency, the beginning
and ending of spells of assistance, work, earnings and em-
ployment stability, and the well-being of children.’’.
(b) APPROPRIATION.—Section 414(b) (42 U.S.C.
614(b)) is amended by striking ‘‘1996,’’ and all that follows
through ‘‘2002’’ and inserting ‘‘2003 through 2007’’.
SEC. 117. DEFINITION OF ASSISTANCE.
(a) IN GENERAL.—Section 419 (42 U.S.C. 619) is
amended by adding at the end the following:
‘‘(6) ASSISTANCE.—
‘‘(A) IN
GENERAL.—The term ‘assistance’
means payment, by cash, voucher, or other
means, to or for an individual or family for the
purpose of meeting a subsistence need of the in-
dividual or family (including food, clothing,
shelter, and related items, but not including costs
of transportation or child care).
‘‘(B) EXCEPTION.—The term ‘assistance’
does not include a payment described in sub-
paragraph (A) to or for an individual or family
on a short-term, nonrecurring basis (as defined
by the State in accordance with regulations pre-
scribed by the Secretary).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is
amended by striking ‘‘assistance’’ and inserting
‘‘aid’’.
(2) Section 404(f) (42 U.S.C. 604(f)) is amended
by striking ‘‘assistance’’ and inserting ‘‘benefits or
services’’.
(3) 
Section 
408(a)(5)(B)(i) 
(42 
U.S.C.
608(a)(5)(B)(i)) is amended in the heading by strik-
ing ‘‘ASSISTANCE’’ and inserting ‘‘AID’’.
(4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is
amended by striking ‘‘assistance’’ and inserting
‘‘aid’’.
SEC. 118. TECHNICAL CORRECTIONS.
(a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended
by inserting a comma after ‘‘appropriate’’.
(b) 
Section 
411(a)(1)(A)(ii)(III) 
(42 
U.S.C.
611(a)(1)(A)(ii)(III)) is amended by striking the last close
parenthesis.
(c) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is
amended by striking ‘‘section’’ and inserting ‘‘sections’’.
(d)(1) Section 413 (42 U.S.C. 613) is amended by
striking subsection (g) and redesignating subsections (h)
through (j) and subsections (k) and (l) (as added by sections
112(c) and 115(a) of this Act, respectively) as subsections
(g) through (k), respectively.
(2) Each of the following provisions is amended by
striking ‘‘413(j)’’ and inserting ‘‘413(i)’’:
(A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C.
603(a)(5)(A)(ii)(III)).
(B) 
Section 
403(a)(5)(F) 
(42 
U.S.C.
603(a)(5)(F)).
(C) 
Section 
403(a)(5)(G)(ii) 
(42 
U.S.C.
603(a)(5)(G)(ii)).
(D) 
Section 
412(a)(3)(B)(iv) 
(42 
U.S.C.
612(a)(3)(B)(iv)).
SEC. 119. FATHERHOOD PROGRAM.
(a) SHORT TITLE.—This section may be cited as the
‘‘Promotion and Support of Responsible Fatherhood and
Healthy Marriage Act of 2002’’.
(b) FATHERHOOD PROGRAM.—
(1) IN GENERAL.—Title I of the Personal Re-
sponsibility and Work Opportunity Reconciliation
Act of 1996 (Public Law 104–193) is amended by
adding at the end the following:
‘‘SEC. 117. FATHERHOOD PROGRAM.
‘‘(a) IN GENERAL.—Title IV (42 U.S.C. 601–679b) is
amended by inserting after part B the following:
‘PART C—FATHERHOOD PROGRAM
‘SEC. 441. FINDINGS AND PURPOSES.
‘(a) FINDINGS.—The Congress finds that there is sub-
stantial evidence strongly indicating the urgent need to pro-
mote and support involved, committed, and responsible fa-
therhood, and to encourage and support healthy marriages
between parents raising children, including data dem-
onstrating the following:
‘(1) In approximately 90 percent of cases where
a parent is absent, that parent is the father.
‘(2) By some estimates, 60 percent of children
born in the 1990’s will spend a significant portion of
their childhood in a home without a father.
‘(3) Nearly 75 percent of children in single-par-
ent homes will experience poverty before they are 11
years old, compared with only 20 percent of children
in 2-parent families.
‘(4) Low income is positively correlated with
children’s difficulties with education, social adjust-
ment, and delinquency, and single-parent households
constitute a disproportionate share of low-income
households.
‘(5) Where families (whether intact or with a
parent absent) are living in poverty, a significant
factor is the father’s lack of job skills.
‘(6) Children raised in 2-parent married fami-
lies, on average, fare better as a group in key areas,
including better school performance, reduced rates of
substance abuse, crime, and delinquency, fewer health,
emotional, and behavioral problems, lower rates of
teenage sexual activity, less risk of abuse or neglect,
and lower risk of teen suicide.
‘(7) Committed and responsible fathering during
infancy and early childhood contributes to the devel-
opment of emotional security, curiosity, and math
and verbal skills.
‘(8) An estimated 24,000,000 children (33.5 per-
cent) live apart from their biological father.
‘(9) A recent national survey indicates that of all
children under age 18 not living with their biological
father, 29 percent had not seen their father even once
in the last 12 months.
‘(b) PURPOSES.—The purposes of this part are:
‘(1) To provide for projects and activities by
public entities and by nonprofit community entities,
including religious organizations, designed to test
promising approaches to accomplishing the following
objectives:
‘(A) Promoting responsible, caring, and ef-
fective parenting through counseling, mentoring,
and parenting education, dissemination of edu-
cational materials and information on parenting
skills, encouragement of positive father involve-
ment, including the positive involvement of non-
resident fathers, and other methods.
‘(B) Enhancing the abilities and commit-
ment of unemployed or low-income fathers to
provide material support for their families and
to avoid or leave welfare programs by assisting
them to take full advantage of education, job
training, and job search programs, to improve
work habits and work skills, to secure career ad-
vancement by activities such as outreach and in-
formation dissemination, coordination, as appro-
priate, with employment services and job train-
ing programs, including the One-Stop delivery
system established under title I of the Workforce
Investment Act of 1998, encouragement and sup-
port of timely payment of current child support
and regular payment toward past due child sup-
port obligations in appropriate cases, and other
methods.
‘(C) Improving fathers’ ability to effectively
manage family business affairs by means such as
education, counseling, and mentoring in matters
including household management, budgeting,
banking, and handling of financial transactions,
time management, and home maintenance.
‘(D) Encouraging and supporting healthy
marriages and married fatherhood through such
activities as premarital education, including the
use of premarital inventories, marriage prepara-
tion programs, skills-based marriage education
programs, marital therapy, couples counseling,
divorce education and reduction programs, di-
vorce mediation and counseling, relationship
skills enhancement programs, including those de-
signed to reduce child abuse and domestic vio-
lence, and dissemination of information about
the benefits of marriage for both parents and
children.
‘(2) Through the projects and activities described
in paragraph (1), to improve outcomes for children
with respect to measures such as increased family in-
come and economic security, improved school per-
formance, better health, improved emotional and be-
havioral stability and social adjustment, and reduced
risk of delinquency, crime, substance abuse, child
abuse and neglect, teen sexual activity, and teen sui-
cide.
‘(3) To evaluate the effectiveness of various ap-
proaches and to disseminate findings concerning out-
comes and other information in order to encourage
and facilitate the replication of effective approaches to
accomplishing these objectives.
‘SEC. 442. DEFINITIONS.
‘In this part, the terms ‘‘Indian tribe’’ and ‘‘tribal or-
ganization’’ have the meanings given them in subsections
(e) and (l), respectively, of section 4 of the Indian Self-De-
termination and Education Assistance Act.
‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE PROJECTS.
‘(a) IN GENERAL.—The Secretary may make grants
for fiscal years 2003 through 2007 to public and nonprofit
community entities, including religious organizations, and
to Indian tribes and tribal organizations, for demonstration
service projects and activities designed to test the effective-
ness of various approaches to accomplish the objectives spec-
ified in section 441(b)(1).
‘(b) ELIGIBILITY
CRITERIA
FOR
FULL
SERVICE
GRANTS.—In order to be eligible for a grant under this sec-
tion, except as specified in subsection (c), an entity shall
submit an application to the Secretary containing the fol-
lowing:
‘(1) 
PROJECT
DESCRIPTION.—A 
statement
including—
‘(A) a description of the project and how it
will be carried out, including the geographical
area to be covered and the number and charac-
teristics of clients to be served, and how it will
address each of the 4 objectives specified in sec-
tion 441(b)(1); and
‘(B) a description of the methods to be used
by the entity or its contractor to assess the extent
to which the project was successful in accom-
plishing its specific objectives and the general ob-
jectives specified in section 441(b)(1).
‘(2) EXPERIENCE AND QUALIFICATIONS.—A dem-
onstration of ability to carry out the project, by
means such as demonstration of experience in success-
fully carrying out projects of similar design and
scope, and such other information as the Secretary
may find necessary to demonstrate the entity’s capac-
ity to carry out the project, including the entity’s
ability to provide the non-Federal share of project re-
sources.
‘(3) ADDRESSING CHILD ABUSE AND NEGLECT
AND DOMESTIC VIOLENCE.—A description of how the
entity will assess for the presence of, and intervene to
resolve, domestic violence and child abuse and neglect,
including how the entity will coordinate with State
and local child protective service and domestic vio-
lence programs.
‘(4) ADDRESSING CONCERNS RELATING TO SUB-
STANCE ABUSE AND SEXUAL ACTIVITY.—A commit-
ment to make available to each individual partici-
pating in the project education about alcohol, tobacco,
and other drugs, and about the health risks associated
with abusing such substances, and information about
diseases and conditions transmitted through substance
abuse and sexual contact, including HIV/AIDS, and
to coordinate with providers of services addressing
such problems, as appropriate.
‘(5) 
COORDINATION
WITH
SPECIFIED
PRO-
GRAMS.—An undertaking to coordinate, as appro-
priate, with State and local entities responsible for
the programs under parts A, B, and D of this title,
including programs under title I of the Workforce In-
vestment Act of 1998 (including the One-Stop delivery
system), and such other programs as the Secretary
may require.
‘(6) RECORDS, 
REPORTS, 
AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits as
the Secretary may find necessary for purposes of over-
sight of project activities and expenditures.
‘(7) SELF-INITIATED EVALUATION.—If the entity
elects to contract for independent evaluation of the
project (part or all of the cost of which may be paid
for using grant funds), a commitment to submit to
the Secretary a copy of the evaluation report within
30 days after completion of the report and not more
than 1 year after completion of the project.
‘(8) COOPERATION
WITH
SECRETARY’S
OVER-
SIGHT AND EVALUATION.—An agreement to cooperate
with the Secretary’s evaluation of projects assisted
under this section, by means including random as-
signment of clients to service recipient and control
groups, if determined by the Secretary to be appro-
priate, and affording the Secretary access to the
project and to project-related records and documents,
staff, and clients.
‘(c) ELIGIBILITY CRITERIA FOR LIMITED PURPOSE
GRANTS.—In order to be eligible for a grant under this sec-
tion in an amount under $25,000 per fiscal year, an entity
shall submit an application to the Secretary containing the
following:
‘(1) PROJECT
DESCRIPTION.—A description of
the project and how it will be carried out, including
the number and characteristics of clients to be served,
the proposed duration of the project, and how it will
address at least 1 of the 4 objectives specified in sec-
tion 441(b)(1).
‘(2) QUALIFICATIONS.—Such information as the
Secretary may require as to the capacity of the entity
to carry out the project, including any previous expe-
rience with similar activities.
‘(3) 
COORDINATION
WITH
RELATED
PRO-
GRAMS.—As required by the Secretary in appropriate
cases, an undertaking to coordinate and cooperate
with State and local entities responsible for specific
programs relating to the objectives of the project in-
cluding, as appropriate, jobs programs and programs
serving children and families.
‘(4) RECORDS, 
REPORTS, 
AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits as
the Secretary may find necessary for purposes of over-
sight of project activities and expenditures.
‘(5) COOPERATION
WITH
SECRETARY’S
OVER-
SIGHT AND EVALUATION.—An agreement to cooperate
with the Secretary’s evaluation of projects assisted
under this section, by means including affording the
Secretary access to the project and to project-related
records and documents, staff, and clients.
‘(d) CONSIDERATIONS IN AWARDING GRANTS.—
‘(1) DIVERSITY
OF
PROJECTS.—In awarding
grants under this section, the Secretary shall seek to
achieve a balance among entities of differing sizes, en-
tities in differing geographic areas, entities in urban
and in rural areas, and entities employing differing
methods of achieving the purposes of this section, in-
cluding working with the State agency responsible for
the administration of part D to help fathers satisfy
child support arrearage obligations.
‘(2) PREFERENCE FOR PROJECTS SERVING LOW-
INCOME FATHERS.—In awarding grants under this
section, the Secretary may give preference to applica-
tions for projects in which a majority of the clients
to be served are low-income fathers.
‘(e) FEDERAL SHARE.—
‘(1) IN GENERAL.—Grants for a project under
this section for a fiscal year shall be available for a
share of the cost of such project in such fiscal year
equal to—
‘(A) up to 80 percent (or up to 90 percent,
if the entity demonstrates to the Secretary’s sat-
isfaction circumstances limiting the entity’s abil-
ity to secure non-Federal resources) in the case
of a project under subsection (b); and
‘(B) up to 100 percent, in the case of a
project under subsection (c).
‘(2) NON-FEDERAL
SHARE.—The non-Federal
share may be in cash or in kind. In determining the
amount of the non-Federal share, the Secretary may
attribute fair market value to goods, services, and fa-
cilities contributed from non-Federal sources.
‘SEC. 
444. 
MULTICITY, 
MULTISTATE 
DEMONSTRATION
PROJECTS.
‘(a) IN GENERAL.—The Secretary may make grants
under this section for fiscal years 2003 through 2007 to eli-
gible entities (as specified in subsection (b)) for 2 multicity,
multistate projects demonstrating approaches to achieving
the objectives specified in section 441(b)(1). One of the
projects shall test the use of married couples to deliver pro-
gram services.
‘(b) ELIGIBLE ENTITIES.—An entity eligible for a
grant under this section must be a national nonprofit fa-
therhood promotion organization that meets the following
requirements:
‘(1) EXPERIENCE
WITH
FATHERHOOD
PRO-
GRAMS.—The organization must have substantial ex-
perience in designing and successfully conducting
programs that meet the purposes described in section
441.
‘(2) EXPERIENCE WITH MULTICITY, MULTISTATE
PROGRAMS
AND
GOVERNMENT
COORDINATION.—The
organization must have experience in simultaneously
conducting such programs in more than 1 major met-
ropolitan area in more than 1 State and in coordi-
nating such programs, where appropriate, with State
and local government agencies and private, nonprofit
agencies (including community-based and religious
organizations), including State or local agencies re-
sponsible for child support enforcement and workforce
development.
‘(c) APPLICATION REQUIREMENTS.—In order to be eli-
gible for a grant under this section, an entity must submit
to the Secretary an application that includes the following:
‘(1) QUALIFICATIONS.—
‘(A) ELIGIBLE
ENTITY.—A demonstration
that the entity meets the requirements of sub-
section (b).
‘(B) OTHER.—Such other information as
the Secretary may find necessary to demonstrate
the entity’s capacity to carry out the project, in-
cluding the entity’s ability to provide the non-
Federal share of project resources.
‘(2) PROJECT
DESCRIPTION.—A description of
and commitments concerning the project design, in-
cluding the following:
‘(A) IN GENERAL.—A detailed description of
the proposed project design and how it will be
carried out, which shall—
‘(i) provide for the project to be con-
ducted in at least 3 major metropolitan
areas;
‘(ii) state how it will address each of
the 
objectives 
specified 
in 
section
441(b)(1);
‘(iii) demonstrate that there is a suffi-
cient number of potential clients to allow
for the random selection of individuals to
participate in the project and for compari-
sons with appropriate control groups com-
posed of individuals who have not partici-
pated in such projects; and
‘(iv) demonstrate that the project is de-
signed to direct a majority of project re-
sources to activities serving low-income fa-
thers (but the project need not make services
available on a means-tested basis).
‘(B) OVERSIGHT, EVALUATION, AND
AD-
JUSTMENT COMPONENT.—An agreement that the
entity—
‘(i) in consultation with the evaluator
selected pursuant to section 445, and as re-
quired by the Secretary, will modify the
project design, initially and (if necessary)
subsequently throughout the duration of the
project, in order to facilitate ongoing and
final oversight and evaluation of project op-
eration and outcomes (by means including,
to the maximum extent feasible, random as-
signment of clients to service recipient and
control groups), and to provide for mid-
course adjustments in project design indi-
cated by interim evaluations;
‘(ii) will submit to the Secretary re-
vised descriptions of the project design as
modified in accordance with clause (i); and
‘(iii) will cooperate fully with the Sec-
retary’s ongoing oversight and ongoing and
final evaluation of the project, by means in-
cluding affording the Secretary access to the
project and to project-related records and
documents, staff, and clients.
‘(3) ADDRESSING CHILD ABUSE AND NEGLECT
AND DOMESTIC VIOLENCE.—A description of how the
entity will assess for the presence of, and intervene to
resolve, domestic violence and child abuse and neglect,
including how the entity will coordinate with State
and local child protective service and domestic vio-
lence programs.
‘(4) ADDRESSING CONCERNS RELATING TO SUB-
STANCE ABUSE AND SEXUAL ACTIVITY.—A commit-
ment to make available to each individual partici-
pating in the project education about alcohol, tobacco,
and other drugs, and about the health risks associated
with abusing such substances, and information about
diseases and conditions transmitted through substance
abuse and sexual contact, including HIV/AIDS, and
to coordinate with providers of services addressing
such problems, as appropriate.
‘(5) 
COORDINATION
WITH
SPECIFIED
PRO-
GRAMS.—An undertaking to coordinate, as appro-
priate, with State and local entities responsible for
the programs funded under parts A, B, and D of this
title, programs under title I of the Workforce Invest-
ment Act of 1998 (including the One-Stop delivery
system), and such other programs as the Secretary
may require.
‘(6) RECORDS, 
REPORTS, 
AND
AUDITS.—An
agreement to maintain such records, make such re-
ports, and cooperate with such reviews or audits (in
addition to those required under the preceding provi-
sions of paragraph (2)) as the Secretary may find
necessary for purposes of oversight of project activities
and expenditures.
‘(d) FEDERAL SHARE.—
‘(1) IN GENERAL.—Grants for a project under
this section for a fiscal year shall be available for up
to 80 percent of the cost of such project in such fiscal
year.
‘(2) NON-FEDERAL
SHARE.—The non-Federal
share may be in cash or in kind. In determining the
amount of the non-Federal share, the Secretary may
attribute fair market value to goods, services, and fa-
cilities contributed from non-Federal sources.
‘SEC. 445. EVALUATION.
‘(a) IN GENERAL.—The Secretary, directly or by con-
tract or cooperative agreement, shall evaluate the effective-
ness of service projects funded under sections 443 and 444
from the standpoint of the purposes specified in section
441(b)(1).
‘(b) EVALUATION METHODOLOGY.—Evaluations under
this section shall—
‘(1) include, to the maximum extent feasible,
random assignment of clients to service delivery and
control groups and other appropriate comparisons of
groups of individuals receiving and not receiving
services;
‘(2) describe and measure the effectiveness of the
projects in achieving their specific project goals; and
‘(3) describe and assess, as appropriate, the im-
pact of such projects on marriage, parenting, domestic
violence, child abuse and neglect, money management,
employment and earnings, payment of child support,
and child well-being, health, and education.
‘(c) EVALUATION REPORTS.—The Secretary shall pub-
lish the following reports on the results of the evaluation:
‘(1) An implementation evaluation report cov-
ering the first 24 months of the activities under this
part to be completed by 36 months after initiation of
such activities.
‘(2) A final report on the evaluation to be com-
pleted by September 30, 2010.
‘SEC. 446. PROJECTS OF NATIONAL SIGNIFICANCE.
‘The Secretary is authorized, by grant, contract, or co-
operative agreement, to carry out projects and activities of
national significance relating to fatherhood promotion,
including—
‘(1) COLLECTION AND DISSEMINATION OF INFOR-
MATION.—Assisting States, communities, and private
entities, including religious organizations, in efforts
to promote and support marriage and responsible fa-
therhood by collecting, evaluating, developing, and
making available (through the Internet and by other
means) to all interested parties information regarding
approaches to accomplishing the objectives specified in
section 441(b)(1).
‘(2) MEDIA CAMPAIGN.—Developing, promoting,
and distributing to interested States, local govern-
ments, public agencies, and private nonprofit organi-
zations, including charitable and religious organiza-
tions, a media campaign that promotes and encour-
ages involved, committed, and responsible fatherhood
and married fatherhood.
‘(3) TECHNICAL
ASSISTANCE.—Providing tech-
nical assistance, including consultation and training,
to public and private entities, including community
organizations and faith-based organizations, in the
implementation of local fatherhood promotion pro-
grams.
‘(4) RESEARCH.—Conducting research related to
the purposes of this part.
‘SEC. 447. NONDISCRIMINATION.
‘The projects and activities assisted under this part
shall be available on the same basis to all fathers and ex-
pectant fathers able to benefit from such projects and activi-
ties, including married and unmarried fathers and custo-
dial and noncustodial fathers, with particular attention to
low-income fathers, and to mothers and expectant mothers
on the same basis as to fathers.
‘SEC. 448. AUTHORIZATION OF APPROPRIATIONS; RESERVA-
TION FOR CERTAIN PURPOSE.
‘(a) AUTHORIZATION.—There are authorized to be ap-
propriated $20,000,000 for each of fiscal years 2003 through
2007 to carry out the provisions of this part.
‘(b) RESERVATION.—Of the amount appropriated
under this section for each fiscal year, not more than 15
percent shall be available for the costs of the multicity,
multicounty, multistate demonstration projects under sec-
tion 444, evaluations under section 445, and projects of na-
tional significance under section 446.’.
‘‘(b) INAPPLICABILITY OF EFFECTIVE DATE PROVI-
SIONS.—Section 116 shall not apply to the amendment
made by subsection (a) of this section.’’.
(2) CLERICAL AMENDMENT.—Section 2 of such
Act is amended in the table of contents by inserting
after the item relating to section 116 the following
new item:
‘‘Sec. 117.Fatherhood program.’’.
TITLE II—CHILD CARE
SEC. 201. ENTITLEMENT FUNDING.
Section 418(a)(3)(F) (42 U.S.C. 618(a)(3)(F)) is
amended to read as follows:
‘‘(F) $2,717,000,000 for each of fiscal years
2002 through 2007.’’.
TITLE III—CHILD SUPPORT
SEC. 301. FEDERAL MATCHING FUNDS FOR LIMITED PASS
THROUGH OF CHILD SUPPORT PAYMENTS TO
FAMILIES RECEIVING TANF.
(a) IN GENERAL.—Section 457(a) (42 U.S.C. 657(a))
is amended—
(1) in paragraph (1)(A), by inserting ‘‘subject to
paragraph (7)’’ before the semicolon; and
(2) by adding at the end the following:
‘‘(7) FEDERAL MATCHING FUNDS FOR LIMITED
PASS THROUGH OF CHILD SUPPORT PAYMENTS TO
FAMILIES RECEIVING TANF.—Notwithstanding para-
graph (1), a State shall not be required to pay to the
Federal Government the Federal share of an amount
collected during a month on behalf of a family that
is a recipient of assistance under the State program
funded under part A, to the extent that—
‘‘(A) the State distributes the amount to the
family;
‘‘(B) the total of the amounts so distributed
to the family during the month—
‘‘(i) exceeds the amount (if any) that,
as of December 31, 2001, was required
under State law to be distributed to a fam-
ily under paragraph (1)(B); and
‘‘(ii) does not exceed the greater of—
‘‘(I) $100; or
‘‘(II) $50 plus the amount de-
scribed in clause (i); and
‘‘(C) the amount is disregarded in deter-
mining the amount and type of assistance pro-
vided to the family under the State program
funded under part A.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to amounts distributed on or after
October 1, 2004.
SEC. 302. STATE OPTION TO PASS THROUGH ALL CHILD
SUPPORT PAYMENTS TO FAMILIES THAT FOR-
MERLY RECEIVED TANF.
(a) IN GENERAL.—Section 457(a) (42 U.S.C. 657(a)),
as amended by section 301 of this Act, is amended—
(1) in paragraph (2)(B), in the matter preceding
clause (i), by inserting ‘‘, except as provided in para-
graph (8),’’ after ‘‘shall’’; and
(2) by adding at the end the following:
‘‘(8) STATE
OPTION
TO
PASS
THROUGH
ALL
CHILD SUPPORT PAYMENTS TO FAMILIES THAT FOR-
MERLY RECEIVED TANF.—In lieu of applying para-
graph (2) to any family described in paragraph (2),
a State may distribute to the family any amount col-
lected during a month on behalf of the family.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to amounts distributed on or after
October 1, 2004.
SEC. 303. MANDATORY REVIEW AND ADJUSTMENT OF
CHILD SUPPORT ORDERS FOR FAMILIES RE-
CEIVING TANF.
(a) IN
GENERAL.—Section 466(a)(10)(A)(i) (42
U.S.C. 666(a)(10)(A)(i)) is amended—
(1) by striking ‘‘parent, or,’’ and inserting ‘‘par-
ent or’’; and
(2) by striking ‘‘upon the request of the State
agency under the State plan or of either parent,’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2004.
SEC. 304. MANDATORY FEE FOR SUCCESSFUL CHILD SUP-
PORT COLLECTION FOR FAMILY THAT HAS
NEVER RECEIVED TANF.
(a) IN GENERAL.—Section 454(6)(B) (42 U.S.C.
654(6)(B)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(B)’’;
(2) by redesignating clauses (i) and (ii) as sub-
clauses (I) and (II), respectively;
(3) by adding ‘‘and’’ after the semicolon; and
(4) by adding after and below the end the fol-
lowing new clause:
‘‘(ii) in the case of an individual who has
never received assistance under a State program
funded under part A and for whom the State has
collected at least $500 of support, the State shall
impose an annual fee of $25 for each case in
which services are furnished, which shall be re-
tained by the State from support collected on be-
half of the individual (but not from the 1st $500
so collected), paid by the individual applying for
the services, recovered from the absent parent, or
paid by the State out of its own funds (the pay-
ment of which from State funds shall not be con-
sidered as an administrative cost of the State for
the operation of the plan, and shall be considered
income to the program);’’.
(b) CONFORMING AMENDMENT.—Section 457(a)(3) (42
U.S.C. 657(a)(3)) is amended to read as follows:
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State
shall distribute to the family the portion of the
amount so collected that remains after withholding
any fee pursuant to section 454(6)(B)(ii).’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 2003.
SEC. 305. REPORT ON UNDISTRIBUTED CHILD SUPPORT
PAYMENTS.
Not later than 6 months after the date of the enactment
of this Act, the Secretary of Health and Human Services
shall submit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate a report on the procedures that the States use
generally to locate custodial parents for whom child support
has been collected but not yet distributed. The report shall
include an estimate of the total amount of such undistrib-
uted child support and the average length of time it takes
for such child support to be distributed. To the extent the
Secretary deems appropriate, the Secretary shall include in
the report recommendations as to whether additional proce-
dures should be established at the State or Federal level to
expedite the payment of undistributed child support.
SEC. 306. USE OF NEW HIRE INFORMATION TO ASSIST IN
ADMINISTRATION OF UNEMPLOYMENT COM-
PENSATION PROGRAMS.
(a) IN GENERAL.—Section 453(j) (42 U.S.C. 653(j))
is amended by adding at the end the following:
‘‘(7) INFORMATION COMPARISONS AND DISCLO-
SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY-
MENT COMPENSATION PROGRAMS.—
‘‘(A) IN GENERAL.—If a State agency re-
sponsible for the administration of an unemploy-
ment compensation program under Federal or
State law transmits to the Secretary the name
and social security account number of an indi-
vidual, the Secretary shall, if the information in
the National Directory of New Hires indicates
that the individual may be employed, disclose to
the State agency the name, address, and em-
ployer identification number of any putative em-
ployer of the individual, subject to this para-
graph.
‘‘(B) CONDITION
ON
DISCLOSURE.—The
Secretary shall make a disclosure under subpara-
graph (A) only to the extent that the Secretary
determines that the disclosure would not interfere
with the effective operation of the program under
this part.
‘‘(C) USE OF INFORMATION.—A State agen-
cy may use information provided under this
paragraph only for purposes of administering a
program referred to in subparagraph (A).’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2003.
SEC. 307. DECREASE IN AMOUNT OF CHILD SUPPORT AR-
REARAGE TRIGGERING PASSPORT DENIAL.
(a) IN
GENERAL.—Section 452(k)(1) (42 U.S.C.
652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting
‘‘$2,500’’.
(b) CONFORMING AMENDMENT.—Section 454(31) (42
U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and in-
serting ‘‘$2,500’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on October 1, 2003.
SEC. 308. USE OF TAX REFUND INTERCEPT PROGRAM TO
COLLECT PAST-DUE CHILD SUPPORT ON BE-
HALF OF CHILDREN WHO ARE NOT MINORS.
(a) IN GENERAL.—Section 464 (42 U.S.C. 664) is
amended—
(1) in subsection (a)(2)(A), by striking ‘‘(as that
term is defined for purposes of this paragraph under
subsection (c))’’; and
(2) in subsection (c)—
(A) in paragraph (1)—
(i) by striking ‘‘(1) Except as provided
in paragraph (2), as used in’’ and inserting
‘‘In’’; and
(ii) by inserting ‘‘(whether or not a
minor)’’ after ‘‘a child’’ each place it ap-
pears; and
(B) by striking paragraphs (2) and (3).
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2004.
SEC. 309. GARNISHMENT OF COMPENSATION PAID TO VET-
ERANS FOR SERVICE-CONNECTED DISABIL-
ITIES IN ORDER TO ENFORCE CHILD SUP-
PORT OBLIGATIONS.
(a) IN GENERAL.—Section 459(h) (42 U.S.C. 659(h))
is amended—
(1) in paragraph (1)(A)(ii)(V), by striking all
that follows ‘‘Armed Forces’’ and inserting a semi-
colon; and
(2) by adding at the end the following:
‘‘(3) LIMITATIONS WITH RESPECT TO COMPENSA-
TION PAID TO VETERANS FOR SERVICE-CONNECTED
DISABILITIES.—Notwithstanding any other provision
of this section:
‘‘(A) Compensation described in paragraph
(1)(A)(ii)(V) shall not be subject to withholding
pursuant to this section—
‘‘(i) for payment of alimony; or
‘‘(ii) for payment of child support if
the individual is fewer than 60 days in ar-
rears in payment of the support.
‘‘(B) Not more than 50 percent of any pay-
ment of compensation described in paragraph
(1)(A)(ii)(V) may be withheld pursuant to this
section.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2004.
SEC. 310. IMPROVING FEDERAL DEBT COLLECTION PRAC-
TICES.
Section 3716(h)(3) of title 31, United States Code, is
amended to read as follows:
TITLE IV—CHILD WELFARE
SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEM-
ONSTRATION PROJECTS.
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is
amended by striking ‘‘2002’’ and inserting ‘‘2007’’.
SEC. 402. ELIMINATION OF LIMITATION ON NUMBER OF
WAIVERS.
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is
amended by striking ‘‘not more than 10’’.
SEC. 403. ELIMINATION OF LIMITATION ON NUMBER OF
STATES THAT MAY BE GRANTED WAIVERS TO
CONDUCT DEMONSTRATION PROJECTS ON
SAME TOPIC.
Section 1130 (42 U.S.C. 1320a–9) is amended by add-
ing at the end the following:
‘‘(h) NO LIMIT ON NUMBER OF STATES THAT MAY BE
GRANTED WAIVERS TO CONDUCT SAME OR SIMILAR DEM-
ONSTRATION PROJECTS.—The Secretary shall not refuse to
grant a waiver to a State under this section on the grounds
that a purpose of the waiver or of the demonstration project
for which the waiver is necessary would be the same as or
similar to a purpose of another waiver or project that is
or may be conducted under this section.’’.
SEC. 404. ELIMINATION OF LIMITATION ON NUMBER OF
WAIVERS THAT MAY BE GRANTED TO A SIN-
GLE STATE FOR DEMONSTRATION PROJECTS.
Section 1130 (42 U.S.C. 1320a–9) is further amended
by adding at the end the following:
‘‘(i) NO LIMIT ON NUMBER OF WAIVERS GRANTED TO,
OR DEMONSTRATION PROJECTS THAT MAY BE CONDUCTED
BY, A SINGLE STATE.—The Secretary shall not impose any
limit on the number of waivers that may be granted to a
State, or the number of demonstration projects that a State
may be authorized to conduct, under this section.’’.
SEC. 405. STREAMLINED PROCESS FOR CONSIDERATION OF
AMENDMENTS TO AND EXTENSIONS OF DEM-
ONSTRATION PROJECTS REQUIRING WAIV-
ERS.
Section 1130 (42 U.S.C. 1320a–9) is further amended
by adding at the end the following:
‘‘(j) STREAMLINED PROCESS FOR CONSIDERATION OF
AMENDMENTS AND EXTENSIONS.—The Secretary shall de-
velop a streamlined process for consideration of amend-
ments and extensions proposed by States to demonstration
projects conducted under this section.’’.
SEC. 406. AVAILABILITY OF REPORTS.
Section 1130 (42 U.S.C. 1320a–9) is further amended
by adding at the end the following:
‘‘(k) AVAILABILITY OF REPORTS.—The Secretary shall
make available to any State or other interested party any
report provided to the Secretary under subsection (f)(2),
and any evaluation or report made by the Secretary with
respect to a demonstration project conducted under this sec-
tion, with a focus on information that may promote best
practices and program improvements.’’.
SEC. 407. TECHNICAL CORRECTION.
Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is
amended 
by 
striking 
‘‘422(b)(9)’’ 
and 
inserting
‘‘422(b)(10)’’.
TITLE V—SUPPLEMENTAL
SECURITY INCOME
SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DIS-
ABILITY DETERMINATIONS.
Section 1633 (42 U.S.C. 1383b) is amended by adding
at the end the following:
‘‘(e)(1) The Commissioner of Social Security shall re-
view determinations, made by State agencies pursuant to
subsection (a) in connection with applications for benefits
under this title on the basis of blindness or disability, that
individuals who have attained 18 years of age are blind
or disabled as of a specified onset date. The Commissioner
of Social Security shall review such a determination before
any action is taken to implement the determination.
‘‘(2)(A) In carrying out paragraph (1), the Commis-
sioner of Social Security shall review—
‘‘(i) at least 20 percent of all determinations re-
ferred to in paragraph (1) that are made in fiscal
year 2003;
‘‘(ii) at least 40 percent of all such determina-
tions that are made in fiscal year 2004; and
‘‘(iii) at least 50 percent of all such determina-
tions that are made in fiscal year 2005 or thereafter.
‘‘(B) In carrying out subparagraph (A), the Commis-
sioner of Social Security shall, to the extent feasible, select
for review the determinations which the Commissioner of
Social Security identifies as being the most likely to be in-
correct.’’.
TITLE VI—BROADENED WAIVER
AUTHORITY
SEC. 
601. 
PROGRAM 
INTEGRATION 
DEMONSTRATION
PROJECTS.
(a) PURPOSE.—The purpose of this section is to estab-
lish a program of demonstration projects in a State or por-
tion of a State to integrate multiple public assistance, work-
force development, and other programs, for the purpose of
supporting working individuals and families, helping fami-
lies escape welfare dependency, promoting child well-being,
or helping build stronger families, using innovative ap-
proaches to strengthen service systems and provide more co-
ordinated and effective service delivery.
(b) DEFINITIONS.—In this section:
(1) ADMINISTERING SECRETARY.—The term ‘‘ad-
ministering Secretary’’ means, with respect to a
qualified program, the head of the Federal agency re-
sponsible for administering the program.
(2) QUALIFIED PROGRAM.—The term ‘‘qualified
program’’ means—
(A) a program under part A of title IV of
the Social Security Act; or
(B) the program under title XX of such Act.
(c) APPLICATION REQUIREMENTS.—The head of a
State entity or of a sub-State entity administering 2 or
more qualified programs proposed to be included in a dem-
onstration project under this section shall (or, if the project
is proposed to include qualified programs administered by
2 or more such entities, the heads of the administering enti-
ties (each of whom shall be considered an applicant for pur-
poses of this section) shall jointly) submit to the admin-
istering Secretary of each such program an application that
contains the following:
(1) PROGRAMS INCLUDED.—A statement identi-
fying each qualified program to be included in the
project, and describing how the purposes of each such
program will be achieved by the project.
(2) POPULATION SERVED.—A statement identi-
fying the population to be served by the project and
specifying the eligibility criteria to be used.
(3) DESCRIPTION
AND
JUSTIFICATION.—A de-
tailed description of the project, including—
(A) a description of how the project is ex-
pected to improve or enhance achievement of the
purposes of the programs to be included in the
project, from the standpoint of quality, of cost-
effectiveness, or of both; and
(B) a description of the performance objec-
tives for the project, including any proposed
modifications to the performance measures and
reporting requirements used in the programs.
(4) WAIVERS REQUESTED.—A description of the
statutory and regulatory requirements with respect to
which a waiver is requested in order to carry out the
project, and a justification of the need for each such
waiver.
(5) COST NEUTRALITY.—Such information and
assurances as necessary to establish to the satisfaction
of the administering Secretary, in consultation with
the Director of the Office of Management and Budget,
that the proposed project is reasonably expected to
meet the applicable cost neutrality requirements of
subsection (d)(4).
(6) EVALUATION AND REPORTS.—An assurance
that the applicant will conduct ongoing and final
evaluations of the project, and make interim and
final reports to the administering Secretary, at such
times and in such manner as the administering Sec-
retary may require.
(7) OTHER
INFORMATION
AND
ASSURANCES.—
Such other information and assurances as the admin-
istering Secretary may require.
(d) APPROVAL OF APPLICATIONS.—
(1) IN GENERAL.—The administering Secretary
with respect to a qualified program that is identified
in an application submitted pursuant to subsection
(c) may approve the application and, except as pro-
vided in paragraph (2), waive any requirement ap-
plicable to the program, to the extent consistent with
this section and necessary and appropriate for the
conduct of the demonstration project proposed in the
application, if the administering Secretary and the
Director of the Office of Management and Budget de-
termine that the project—