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‘‘(bb) the amount (if any)
paid to the State under this para-
graph for the immediately preced-
ing fiscal year; divided by
‘‘(II) the number of individuals,
according to the 1990 decennial census,
who were residents of the State and
whose income was below the poverty
line.
‘‘(ii) NATIONAL
AVERAGE
LEVEL
OF
STATE WELFARE SPENDING PER POOR PER-
SON.—The term ‘national average level of
State welfare spending per poor person’
means, with respect to a fiscal year, an
amount equal to—
‘‘(I) the total amount required to
be paid to the States under former sec-
tion 403 (as in effect during fiscal year
1994) for fiscal year 1994; divided by
‘‘(II) the number of individuals,
according to the 1990 decennial census,
who were residents of any State and
whose income was below the poverty
line.
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‘‘(iii) STATE.—The term ‘State’ means
each of the 50 States of the United States
and the District of Columbia.
‘‘(E) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated for
fiscal years 1998, 1999, 2000, and 2001 such
sums as are necessary for grants under this
paragraph, in a total amount not to exceed
$800,000,000.
‘‘(F) GRANTS REDUCED PRO RATA IF INSUF-
FICIENT
APPROPRIATIONS.—If the amount ap-
propriated pursuant to this paragraph for a fis-
cal year is less than the total amount of pay-
ments otherwise required to be made under this
paragraph for the fiscal year, then the amount
otherwise payable to any State for the fiscal year
under this paragraph shall be reduced by a per-
centage equal to the amount so appropriated di-
vided by such total amount.
‘‘(G) BUDGET
SCORING.—Notwithstanding
section 257(b)(2) of the Balanced Budget and
Emergency Deficit Control Act of 1985, the base-
line shall assume that no grant shall be made
under this paragraph after fiscal year 2000.
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‘‘(4) BONUS
TO
REWARD
HIGH
PERFORMANCE
STATES.—
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant pursuant to this paragraph to
each State for each bonus year for which the
State is a high performing State.
‘‘(B) AMOUNT OF GRANT.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii) of this subparagraph, the Secretary
shall determine the amount of the grant
payable under this paragraph to a high
performing State for a bonus year, which
shall be based on the score assigned to the
State under subparagraph (D)(i) for the fis-
cal year that immediately precedes the
bonus year.
‘‘(ii) LIMITATION.—The amount pay-
able to a State under this paragraph for a
bonus year shall not exceed 5 percent of the
State family assistance grant.
‘‘(C) FORMULA FOR MEASURING STATE PER-
FORMANCE.—Not later than 1 year after the date
of the enactment of the Personal Responsibility
and Work Opportunity Act of 1996, the Sec-
retary, in consultation with the National Gov-
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HR 3734 EAS
ernors’ Association and the American Public
Welfare Association, shall develop a formula for
measuring State performance in operating the
State program funded under this part so as to
achieve the goals set forth in section 401(a). Such
formula shall emphasize the extent to which the
State increases the number of families that be-
come ineligible for assistance under the State
program funded under this part as a result of
unsubsidized employment.
‘‘(D) SCORING
OF
STATE
PERFORMANCE;
SETTING OF PERFORMANCE THRESHOLDS.—For
each bonus year, the Secretary shall—
‘‘(i) use the formula developed under
subparagraph (C) to assign a score to each
eligible State for the fiscal year that imme-
diately precedes the bonus year; and
‘‘(ii) prescribe a performance threshold
in such a manner so as to ensure that—
‘‘(I) the average annual total
amount of grants to be made under
this paragraph for each bonus year
equals the amount specified for such
bonus year in subparagraph (E)(ii);
and
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‘‘(II) the total amount of grants to
be made under this paragraph for all
bonus years equals $1,000,000,000.
‘‘(E) DEFINITIONS.—As used in this para-
graph:
‘‘(i) BONUS
YEAR.—The term ‘bonus
year’ means fiscal years 1999, 2000, 2001,
2002, and 2003.
‘‘(ii) THE
AMOUNT
SPECIFIED
FOR
SUCH BONUS YEAR.—The term ‘the amount
specified for such bonus year’ means the fol-
lowing:
‘‘(I) For fiscal years 1999, 2000,
2001, and 2002, $175,000,000.
‘‘(II) 
For 
fiscal 
year 
2003,
$300,000,000.
‘‘(iii) HIGH PERFORMING STATE.—The
term ‘high performing State’ means, with
respect a bonus year, an eligible State
whose score assigned pursuant to subpara-
graph (D)(i) for the fiscal year immediately
preceding the bonus year equals or exceeds
the performance threshold prescribed under
subparagraph (D)(ii) for such preceding fis-
cal year.