sonnel of the Department of Labor to the Panel
to assist the Panel in carrying out its duties
under this paragraph.
‘‘(J) OBTAINING
OFFICIAL
DATA.—The
Panel may secure directly from any department
or agency of the United States information nec-
essary to enable it to carry out this paragraph.
On request of the Chairperson of the Panel, the
head of the department or agency shall furnish
that information to the Panel.
‘‘(K) MAILS.—The Panel may use the
United States mails in the same manner and
under the same conditions as other departments
and agencies of the United States.
‘‘(L) TERMINATION.—The Panel shall ter-
minate on October 1, 2001.
‘‘(3) RULES GOVERNING GRANTS.—
‘‘(A) GRANT AWARDS.—
‘‘(i) IN
GENERAL.—The Secretary
shall award matching grants, on a competi-
tive basis, among entities submitting appli-
cations therefor which meet the require-
ments of paragraph (1), in amounts that
take into account the written commitments
referred to in paragraph (1)(D).
‘‘(ii) TIMING.—On October 1, 2001,
the Secretary shall award not more than
$140,000,000 in matching grants after
considering 
the 
recommendations 
sub-
mitted pursuant to paragraph (2)(C)(i).
‘‘(iii) NONDISCRIMINATION.—The pro-
visions of this section shall be applied and
administered so as to ensure that mothers,
expectant mothers, and married mothers
are eligible for benefits and services under
projects awarded grants under this section
on the same basis as fathers, expectant fa-
thers, and married fathers.
‘‘(B) 
PREFERENCES.—In 
determining
which entities to which to award grants under
this subsection, the Secretary shall give pref-
erence to an entity—
‘‘(i) to the extent that the application
submitted by the entity describes actions
that the entity will take that are designed
to encourage or facilitate the payment of
child support, including but not limited
to—
‘‘(I) obtaining a written commit-
ment by the agency responsible for
administering the State plan approved
under part D for the State in which
the project is to be carried out that
the State will voluntarily cancel child
support arrearages owed to the State
by the father as a result of the father
providing various supports to the fam-
ily such as maintaining a regular child
support payment schedule or living
with his children;
‘‘(II) obtaining a written commit-
ment by the entity that the entity will
help participating fathers who cooper-
ate with the agency in improving their
credit rating; and
‘‘(III) helping fathers arrange
and maintain a consistent schedule of
visits with their children, unless it
would be unsafe;
‘‘(ii) to the extent that the application
includes written agreements of cooperation
with other private and governmental agen-
cies, including the State or local program
funded under this part, the local Work-
force Investment Board, the State or local
program funded under part D, community-
based domestic violence programs, and the
State or local program funded under part
E, which should include a description of
the services each such agency will provide
to fathers participating in the project de-
scribed in the application;
‘‘(iii) to the extent that the applica-
tion describes a project that will enroll a
high percentage of project participants
within 6 months before or after the birth
of the child; or
‘‘(iv) to the extent that the application
sets forth clear and practical methods by
which fathers will be recruited to partici-
pate in the project.
‘‘(C) MINIMUM
PERCENTAGE
OF
RECIPI-
ENTS OF GRANT FUNDS TO BE NONGOVERN-
MENTAL (INCLUDING FAITH-BASED) ORGANIZA-
TIONS.—Not less than 75 percent of the enti-
ties awarded grants under this subsection in
each fiscal year (other than entities awarded
such grants pursuant to the preferences re-
quired by subparagraph (B)) shall be awarded
to—
‘‘(i) nongovernmental (including faith-
based) organizations; or
‘‘(ii) governmental organizations that
pass through to organizations referred to
in clause (i) at least 50 percent of the
amount of the grant.
‘‘(D) DIVERSITY OF PROJECTS.—
‘‘(i) IN
GENERAL.—In determining
which entities to which to award grants
under this subsection, the Secretary shall
attempt to achieve a balance among enti-
ties of differing sizes, entities in differing
geographic areas, entities in urban versus
rural areas, and entities employing dif-
fering methods of achieving the purposes
of this section.
‘‘(ii) REPORT
TO
THE
CONGRESS.—
Within 90 days after each award of grants
under subparagraph (A)(ii), the Secretary
shall submit to the Committee on Ways
and Means of the House of Representa-
tives and the Committee on Finance of the
Senate a brief report on the diversity of
projectes selected to receive funds under
the grant program. The report shall in-
clude a comparison of funding for projects
located in urban areas, projects located in
suburban areas, and projects located in
rural areas.
‘‘(E) PAYMENT OF GRANT IN FOUR EQUAL
ANNUAL
INSTALLMENTS.—During the fiscal
year in which a grant is awarded under this
subsection and each of the succeeding three fis-
cal years, the Secretary shall provide to the en-
tity awarded the grant an amount equal to 1⁄4
of the amount of the grant.
‘‘(4) USE OF FUNDS.—
‘‘(A) IN GENERAL.—Each entity to which
a grant is made under this subsection shall use
grant funds provided under this subsection in
accordance with the application requesting the
grant, the requirements of this subsection, and
the regulations prescribed under this sub-
section, and may use the grant funds to support
community-wide initiatives to address the pur-
poses of this section.
‘‘(B) NONDISPLACEMENT.—
‘‘(i) IN
GENERAL.—An adult in a
work activity described in section 407(d)
which is funded, in whole or in part, by
funds provided under this section shall not
be employed or assigned—
‘‘(I) when any other individual is
on layoff from the same or any sub-
stantially equivalent job; or
‘‘(II) if the employer has termi-
nated the employment of any regular
employee or otherwise caused an in-
voluntary reduction of its workforce in
order to fill the vacancy so created
with such an adult.
‘‘(ii) GRIEVANCE PROCEDURE.—
‘‘(I) IN
GENERAL.—Complaints
alleging violations of clause (i) in a
State may be resolved—
‘‘(aa) if the State has estab-
lished 
a 
grievance 
procedure
under section 403(a)(5)(I)(iv),
pursuant to the grievance proce-
dure; or
‘‘(bb) otherwise, pursuant to
the grievance procedure estab-
lished by the State under section
407(f)(3).
‘‘(II) FORFEITURE OF GRANT IF
GRIEVANCE
PROCEDURE
NOT
AVAIL-
ABLE.—If a complaint referred to in
subclause (I) is made against an enti-
ty to which a grant has been made
under this section with respect to a
project, and the complaint cannot be
brought to, or cannot be resolved
within 90 days after being brought, by
a grievance procedure referred to in
subclause (I), then the entity shall im-
mediately return to the Secretary all
funds provided to the entity under
this section for the project, and the
Secretary shall immediately rescind
the grant.
‘‘(C) RULE OF CONSTRUCTION.—This sec-
tion shall not be construed to require the par-
ticipation of a father in a project funded under
this section to be discontinued by the project on
the basis of changed economic circumstances of
the father.
‘‘(D) RULE OF CONSTRUCTION ON MAR-
RIAGE.—This section shall not be construed to
authorize the Secretary to define marriage for
purposes of this section.
‘‘(E) PENALTY
FOR
MISUSE
OF
GRANT
FUNDS.—If the Secretary determines that an
entity to which a grant is made under this sub-
section has used any amount of the grant in
violation of subparagraph (A), the Secretary
shall require the entity to remit to the Sec-
retary an amount equal to the amount so used,
plus all remaining grant funds, and the entity
shall thereafter be ineligible for any grant
under this subsection.
‘‘(F) REMITTANCE
OF
UNUSED
GRANT
FUNDS.—Each entity to which a grant is
awarded under this subsection shall remit to
the Secretary all funds paid under the grant
that remain at the end of the fifth fiscal year
ending after the initial grant award.
‘‘(5) AUTHORITY OF AGENCIES TO EXCHANGE
INFORMATION.—Each agency administering a pro-
gram funded under this part or a State plan ap-
proved under part D may share the name, address,
telephone number, and identifying case number in-
formation in the State program funded under this
part, of fathers for purposes of assisting in deter-
mining the eligibility of fathers to participate in
projects receiving grants under this section, and in
contacting fathers potentially eligible to participate
in the projects, subject to all applicable privacy laws.
‘‘(6) EVALUATION.—The Secretary, in consulta-
tion with the Secretary of Labor, shall, directly or
by grant, contract, or interagency agreement, con-
duct an evaluation of projects funded under this sec-
tion (other than under subsection (c)(1)). The eval-
uation shall assess, among other outcomes selected
by the Secretary, effects of the projects on marriage,
parenting, employment, earnings, and payment of
child support. In selecting projects for the evalua-
tion, the Secretary should include projects that, in
the Secretary’s judgment, are most likely to impact
the matters described in the purposes of this section.
In conducting the evaluation, random assignment
should be used wherever possible.
‘‘(7) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to carry
out this subsection.
‘‘(8) LIMITATION ON APPLICABILITY OF OTHER
PROVISIONS OF THIS PART.—Sections 404 through
410 shall not apply to this section or to amounts
paid under this section, and shall not be applied to
an entity solely by reason of receipt of funds pursu-
ant to this section. A project shall not be considered
a State program funded under this part solely by
reason of receipt of funds paid under this section.
‘‘(9) FUNDING.—
‘‘(A) IN GENERAL.—
‘‘(i) INTERAGENCY
PANEL.—Of the
amounts made available pursuant to sec-
tion 403(a)(1)(E) to carry out this section
for fiscal year 2001, a total of $150,000
shall be made available for the interagency
panel established by paragraph (2) of this
subsection.
‘‘(ii) GRANTS.—Of the amounts made
available pursuant to section 403(a)(1)(E)
to carry out this section for fiscal years
2002 
through 
2005, 
a 
total 
of
$140,000,000 shall be made available for
grants under this subsection.
‘‘(iii) EVALUATION.—Of the amounts
made 
available 
pursuant 
to 
section
403(a)(1)(E) to carry out this section for
fiscal years 2001 through 2006, a total of
$6,000,000 shall be made available for the
evaluation required by paragraph (6) of
this subsection.
‘‘(B) AVAILABILITY.—
‘‘(i) GRANT
FUNDS.—The amounts
made available pursuant to subparagraph
(A)(ii) shall remain available until the end
of fiscal year 2006.
‘‘(ii) 
EVALUATION
FUNDS.—The
amounts made available pursuant to sub-
paragraph (A)(iii) shall remain available
until the end of fiscal year 2008.’’.
(b) FUNDING.—Section 403(a)(1)(E) of such Act (42
U.S.C. 603(a)(1)(E)) is amended by inserting ‘‘, and for
fiscal years 2001 through 2007, such sums as are nec-
essary to carry out section 403A’’ before the period.
(c) APPLICABILITY OF CHARITABLE CHOICE PROVI-
SIONS OF WELFARE REFORM.—Section 104 of the Per-
sonal Responsibility and Work Opportunity Reconciliation
Act of 1996 (42 U.S.C. 604a) is amended by adding at
the end the following:
‘‘(l) Notwithstanding the preceding provisions of this
section, this section shall apply to any entity to which
funds have been provided under section 403A of the Social
Security Act in the same manner in which this section ap-
plies to States, and, for purposes of this section, any