gardless of whether kinship guardianship assist-
ance payments are to be made on behalf of the 
child under the State plan under this part;’’. 
(B) REDESIGNATION OF NEW PROVISION 
AFTER
AMENDMENT
MADE
BY
PRIOR
LAW 
TAKES EFFECT.— 
(i) IN GENERAL.—Section 471(a)(20) 
of the Social Security Act (42 U.S.C. 
671(a)(20)) is amended— 
(I) in subparagraph (D), by 
striking ‘‘(C)’’ and inserting ‘‘(B)’’; 
and 
(II) by redesignating subpara-
graph (D) as subparagraph (C). 
(ii) EFFECTIVE
DATE.—The amend-
ments made by clause (i) shall take effect 
immediately after the amendments made 
by section 152 of Public Law 109–248 
take effect. 
(3) PAYMENTS TO STATES.—Section 474(a) of 
such Act (42 U.S.C. 674(a)) is amended— 
(A) by striking the period at the end and 
inserting ‘‘; plus’’; and 
(B) by adding at the end the following: 
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‘‘(6) an amount equal to the percentage by 
which the expenditures referred to in paragraph (2) 
of this subsection are reimbursed of the total 
amount expended during such quarter as kinship 
guardianship assistance payments under section 
473(d) pursuant to kinship guardianship assistance 
agreements.’’. 
(4) DEFINITIONS.—Section 475(1) of such Act 
(42 U.S.C. 675(1)) is amended by adding at the end 
the following: 
‘‘(F) In the case of a child with respect to 
whom the permanency plan is placement with a 
relative and receipt of kinship guardianship as-
sistance payments under section 473(d), a de-
scription of— 
‘‘(i) the steps that the agency has 
taken to determine that it is not appro-
priate for the child to be returned home or 
adopted; 
‘‘(ii) the reasons for any separation of 
siblings during placement; 
‘‘(iii) the reasons why a permanent 
placement with a fit and willing relative 
through a kinship guardianship assistance 
arrangement is in the child’s best interests; 
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‘‘(iv) the ways in which the child 
meets the eligibility requirements for a kin-
ship guardianship assistance payment; 
‘‘(v) the efforts the agency has made 
to discuss adoption by the child’s relative 
foster parent as a more permanent alter-
native to legal guardianship and, in the 
case of a relative foster parent who has 
chosen not to pursue adoption, documenta-
tion of the reasons therefor; and 
‘‘(vi) the efforts made by the State 
agency to discuss with the child’s parent or 
parents the kinship guardianship assist-
ance arrangement, or the reasons why the 
efforts were not made.’’. 
(d) CONTINUED SERVICES UNDER WAIVER.—Sec-
tion 474 of such Act (42 U.S.C. 674) is amended by add-
ing at the end the following: 
‘‘(g) For purposes of this part, after the termination 
of a demonstration project relating to guardianship con-
ducted by a State under section 1130, the expenditures 
of the State for the provision, to children who, as of Sep-
tember 30, 2008, were receiving assistance or services 
under the project, of the same assistance and services 
under the same terms and conditions that applied during 
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the conduct of the project, are deemed to be expenditures 
under the State plan approved under this part.’’. 
SEC. 3. FAMILY CONNECTION GRANTS. 
Part B of title IV of the Social Security Act (42 
U.S.C. 620–629i) is amended by adding at the end the 
following: 
‘‘Subpart 3—Family Connection Grants 
‘‘SEC. 441. FAMILY CONNECTION GRANTS. 
‘‘(a) IN GENERAL.—The Secretary of Health and 
Human Services may make matching grants to State, 
local, or tribal child welfare agencies, and private non-
profit organizations that have experience in working with 
foster children or children in kinship care arrangements, 
for the purpose of helping children who are in, or at risk 
of entering, foster care reconnect with family members 
through the implementation of— 
‘‘(1) kinship navigator programs designed to as-
sist kinship caregivers in navigating their way 
through programs and services, and to help the care-
givers learn about and obtain assistance to meet the 
needs of the children they are raising and their own 
needs; 
‘‘(2) intensive family-finding efforts that utilize 
search technology to find biological family members 
for children in the child welfare system, and once 
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identified, work to reestablish relationships and ex-
plore ways to find a permanent family placement for 
the children; or 
‘‘(3) family group decision-making meetings for 
children in the child welfare system that engage and 
empower families to make decisions and develop 
plans that nurture children and protect them from 
enduring further abuse and neglect. 
‘‘(b) APPLICATIONS.—An entity desiring to receive a 
matching grant under this section shall submit to the Sec-
retary an application, at such time, in such manner, and 
containing such information as the Secretary may require, 
including— 
‘‘(1) a description of how the grant will be used 
to implement 1 or more of the activities described in 
subsection (a); 
‘‘(2) a description of the types of children and 
families to be served, including how the children and 
families will be identified and recruited, and an ini-
tial projection of the number of children and families 
to be served; 
‘‘(3) if the entity is a private organization— 
‘‘(A) documentation of support from the 
relevant local or State child welfare agency; or 
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‘‘(B) a description of how the organization 
plans to coordinate its services and activities 
with those offered by the relevant local or State 
child welfare agency; and 
‘‘(4) an assurance that the entity will cooperate 
fully with any evaluation provided for by the Sec-
retary under this section. 
‘‘(c) LIMITATIONS.— 
‘‘(1) GRANT
DURATION.—The Secretary may 
award a grant under this section for a period of not 
less than 1 year and not more than 3 years. 
‘‘(2) NUMBER OF NEW GRANTEES PER YEAR.— 
The Secretary may not award a grant under this 
section to more than 20 new grantees each fiscal 
year. 
‘‘(d) FEDERAL CONTRIBUTION.—The amount of a 
grant payment to be made to a grantee under this section 
during each year in the grant period shall be the following 
percentage of the total expenditures proposed to be made 
by the grantee in the application approved by the Sec-
retary under this section: 
‘‘(1) 75 percent, if the payment is for the 1st 
or 2nd year of the grant period. 
‘‘(2) 50 percent, if the payment is for the 3rd 
year of the grant period. 
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‘‘(e) FORM OF GRANTEE CONTRIBUTION.—A grantee 
under this section may provide not more than 50 percent 
of the amount which the grantee is required to expend 
to carry out the activities for which a grant is awarded 
under this section in kind, fairly evaluated, including 
plant, equipment, or services. 
‘‘(f) USE OF GRANT.—A grantee under this section 
shall use the grant in accordance with the approved appli-
cation for the grant. 
‘‘(g) RESERVATIONS OF FUNDS.— 
‘‘(1) EVALUATION.—The Secretary shall reserve 
3 percent of the funds made available under sub-
section (h) for each fiscal year for the conduct of a 
rigorous evaluation of the activities funded with 
grants under this section. 
‘‘(2) TECHNICAL ASSISTANCE.—The Secretary 
may reserve 2 percent of the funds made available 
under subsection (h) for each fiscal year to provide 
technical assistance to recipients of grants under 
this section. 
‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.—To carry out this section, there are author-
ized to be appropriated to the Secretary not more than 
$50,000,000 for each of fiscal years 2009 through 2013.’’. 
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SEC. 4. NOTIFICATION TO RELATIVES OF FOSTER CARE 
PLACEMENTS. 
Section 471(a) of the Social Security Act (42 U.S.C. 
671(a)), as amended by section 2(a) of this Act, is amend-
ed— 
(1) by striking ‘‘and’’ at the end of paragraph 
(27); 
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(29) provides that, not later than 30 days 
after the date the State places a child in foster care, 
the State agency shall attempt to locate and notify 
any noncustodial parents, siblings, grandparents, 
aunts, or uncles of the child who are adults, of the 
removal of the child from the custody of the child’s 
parent or parents and explain the options the rel-
ative has to participate in the care and placement of 
the child, subject to exceptions due to family or do-
mestic violence which shall be provided for under 
State law.’’. 
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SEC. 5. STATE OPTION FOR CHILDREN IN FOSTER CARE, 
AND CERTAIN CHILDREN IN AN ADOPTIVE OR 
GUARDIANSHIP PLACEMENT, AFTER ATTAIN-
ING AGE 18. 
(a) DEFINITION OF CHILD.—Section 475 of the So-
cial Security Act (42 U.S.C. 675) is amended by adding 
at the end the following: 
‘‘(8)(A) Subject to subparagraph (B), the term 
‘child’ means an individual who has not attained 18 
years of age. 
‘‘(B) At the option of a State, the term shall 
include an individual— 
‘‘(i)(I) who is in foster care under the re-
sponsibility of the State; 
‘‘(II) with respect to whom an adoption as-
sistance agreement is in effect under section 
473 if the child had attained 16 years of age 
before the agreement became effective; or 
‘‘(III) with respect to whom a kinship 
guardianship assistance agreement is in effect 
under section 473(d) if the child had attained 
16 years of age before the agreement became 
effective; 
‘‘(ii) who has attained 18 years of age; 
‘‘(iii) who has not attained 19, 20, or 21 
years of age, as the State may elect; and 
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‘‘(iv) who is— 
‘‘(I) completing secondary education 
or a program leading to an equivalent cre-
dential; 
‘‘(II) enrolled in an institution which 
provides post-secondary or vocational edu-
cation; 
‘‘(III) participating in a program or 
activity designed to promote, or remove 
barriers to, employment; or 
‘‘(IV) employed for at least 80 hours 
per month.’’. 
(b) CONFORMING AMENDMENT TO DEFINITION OF 
CHILD-CARE INSTITUTION.—Section 472(c)(2) of such 
Act (42 U.S.C. 672(c)(2)) is amended by inserting ‘‘, ex-
cept, in the case of a child who has attained 18 years of 
age, the term shall include a supervised setting in which 
the individual is living independently, in accordance with 
such conditions as the Secretary shall establish in regula-
tions’’ before the period. 
(c) CONFORMING AMENDMENTS TO AGE LIMITS AP-
PLICABLE TO CHILDREN ELIGIBLE FOR ADOPTION AS-
SISTANCE
OR KINSHIP GUARDIANSHIP ASSISTANCE.— 
Section 473(a)(4) of such Act (42 U.S.C. 673(a)(4)) is 
amended to read as follows: 
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‘‘(4)(A) Notwithstanding any other provision of this 
section, a payment may not be made pursuant to this sec-
tion to parents or relative guardians with respect to a 
child— 
‘‘(i) who has attained— 
‘‘(I) 18 years of age, or such greater age 
as 
the 
State 
may 
elect 
under 
section 
475(8)(B)(iii); or 
‘‘(II) 21 years of age, if the State deter-
mines that the child has a mental or physical 
handicap which warrants the continuation of 
assistance; 
‘‘(ii) who has not attained 18 years of age, if 
the State determines that the parents or relative 
guardians, as the case may be, are no longer legally 
responsible for the support of the child; or 
‘‘(iii) if the State determines that the child is 
no longer receiving any support from the parents or 
relative guardians, as the case may be. 
‘‘(B) Parents or relative guardians who have been re-
ceiving adoption assistance payments or kinship guardian-
ship assistance payments under this section shall keep the 
State or local agency administering the program under 
this section informed of circumstances which would, pur-
suant to this subsection, make them ineligible for the pay-
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ments, or eligible for the payments in a different 
amount.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2010. 
SEC. 6. SHORT-TERM TRAINING FOR CHILD WELFARE 
AGENCIES 
AND 
PROSPECTIVE 
RELATIVE 
GUARDIANS. 
(a) IN GENERAL.—Section 474(a)(3)(B) of the So-
cial Security Act (42 U.S.C. 674(a)(3)(B)) is amended— 
(1) by inserting ‘‘or relative guardians’’ after 
‘‘adoptive parents’’; and 
(2) by inserting ‘‘, or State-licensed or State- 
approved child welfare agencies providing services,’’ 
after ‘‘providing care’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2008. 
(c) PHASE-IN.—With respect to an expenditure de-
scribed in section 474(a)(3)(B) of the Social Security Act 
by reason of an amendment made by subsection (a) of this 
section, in lieu of the percentage set forth in such section 
474(a)(3)(B), the percentage that shall apply is— 
(1) 55 percent, if the expenditure is made in 
fiscal year 2009; 
(2) 60 percent, if the expenditure is made in 
fiscal year 2010; 
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(3) 65 percent, if the expenditure is made in 
fiscal year 2011; or 
(4) 70 percent, if the expenditure is made in 
fiscal year 2012. 
SEC. 7. EQUITABLE ACCESS FOR FOSTER CARE AND ADOP-
TION SERVICES FOR INDIAN CHILDREN IN 
TRIBAL AREAS. 
(a) AUTHORITY FOR INDIAN TRIBES TO RECEIVE 
DIRECT
FEDERAL
TITLE
IV–E 
FUNDS.—Section 
472(a)(2)(B) of the Social Security Act (42 U.S.C. 
672(a)(2)(B)) is amended— 
(1) in clause (i), by striking ‘‘or’’ at the end; 
(2) in clause (ii), by striking ‘‘and’’ at the end 
and inserting ‘‘or’’; and 
(3) by adding at the end the following: 
‘‘(iii) an Indian tribe or a tribal orga-
nization (as defined in section 479B(a)) or 
a tribal consortium, if the Indian tribe, 
tribal organization, or tribal consortium— 
‘‘(I) operates a program under 
section 479B; 
‘‘(II) has a cooperative agree-
ment with a State under section 
479B(d); or 
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‘‘(III) submits to the Secretary a 
description 
of 
the 
arrangements 
(jointly developed in consultation with 
the State) made by the Indian tribe or 
tribal consortium for the payment of 
funds and the provision of the child 
welfare services and protections re-
quired by this title; and’’. 
(b) PROGRAMS OPERATED BY INDIAN TRIBAL ORGA-
NIZATIONS.—Part E of title IV of such Act (42 U.S.C. 
670 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 479B. PROGRAMS OPERATED BY INDIAN TRIBAL OR-
GANIZATIONS. 
‘‘(a) DEFINITIONS OF INDIAN TRIBE; TRIBAL ORGA-
NIZATIONS.—In this section: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the terms ‘Indian tribe’ and ‘tribal orga-
nization’ have the meanings given those terms in 
section 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b). 
‘‘(2) SPECIAL RULE FOR ALASKAN TRIBES.— 
The term ‘Indian tribe’ means, with respect to the 
State of Alaska, only the Metlakatla Indian Commu-
nity of the Annette Islands Reserve and the fol-
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lowing Alaska Native regional nonprofit corpora-
tions: 
‘‘(A) Artice Slope Native Association. 
‘‘(B) Kawerak, Inc. 
‘‘(C) Maniilaq Association. 
‘‘(D) Association of Village Council Presi-
dents. 
‘‘(E) Tanana Chiefs Conference. 
‘‘(F) Cook Inlet Tribal Council. 
‘‘(G) Bristol Bay Native Association. 
‘‘(H) Aleutian and Pribilof Island Associa-
tion. 
‘‘(I) Chugachmuit. 
‘‘(J) Tlingit Haida Central Council. 
‘‘(K) Kodiak Area Native Association. 
‘‘(L) Copper River Native Association. 
‘‘(b) APPLICATION.—Except as provided in sub-
sections (c) and (e), this part shall apply to an Indian 
tribe, tribal organization, or a tribal consortium that elects 
to operate a program under this part in the same manner 
as this part applies to a State. 
‘‘(c) MODIFICATION OF PLAN AND OTHER REQUIRE-
MENTS.— 
‘‘(1) IN GENERAL.—In the case of an Indian 
tribe, a tribal organization, or a tribal consortium 
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submitting a plan for approval under section 471, 
the plan— 
‘‘(A) shall— 
‘‘(i) in lieu of the requirements of sec-
tion 471(a)(3), identify the service area or 
areas and population to be served by the 
Indian tribe, tribal organization, or tribal 
consortium; and 
‘‘(ii) in lieu of the requirements of 
section 471(a)(10), provide for the estab-
lishment and application of standards for 
foster family homes and child care institu-
tions pursuant to tribal standards and in a 
manner that ensures the safety of, and ac-
countability for, children placed in foster 
care; and 
‘‘(B) may, at the option of the Indian 
tribe, tribal organization, or tribal consortium, 
in 
lieu 
of 
the 
requirements 
of 
section 
471(a)(20), provide procedures for conducting 
background checks in accordance with the re-
quirements of section 408 of the Indian Child 
Protection and Family Violence Prevention Act 
(25 U.S.C. 3207) and regulations issued there-
under, and for conducting checks of child abuse 
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and neglect registries maintained by the Fed-
eral Government, by a State, and by an Indian 
tribe, tribal organization, or tribal consortium 
in a manner that ensures the safety of, and ac-
countability for, children placed in foster care 
or who are being placed for adoption. 
‘‘(2) DETERMINATION
OF
FEDERAL
SHARE; 
SOURCES OF NON-FEDERAL SHARE.— 
‘‘(A) PER CAPITA INCOME.— 
‘‘(i) IN
GENERAL.—For purposes of 
determining the Federal medical assistance 
percentage applicable to an Indian tribe, a 
tribal organization, or a tribal consortium 
under paragraphs (1) and (2) of section 
474(a) (and for purposes of payments 
made under an arrangement described in 
section 472(a)(2)(B)(iii)(III)), the calcula-
tion of the per capita income of the Indian 
tribe, tribal organization, or tribal consor-
tium shall be based upon the service popu-
lation of the Indian tribe, tribal organiza-
tion, or tribal consortium as defined in the 
plan of the Indian tribe, tribal organiza-
tion, or tribal consortium, in accordance 
with paragraph (1)(A), except that in no 
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case shall an Indian tribe, a tribal organi-
zation, or a tribal consortium receive less 
than the Federal medical assistance per-
centage for any State in which the tribe is 
located. 
‘‘(ii) CONSIDERATION OF OTHER IN-
FORMATION.—Before making a calculation 
under clause (i), the Secretary shall con-
sider any information submitted by an In-
dian tribe, a tribal organization, or a tribal 
consortium that the Indian tribe, tribal or-
ganization, or tribal consortium considers 
relevant to making the calculation of the 
per capita income of the Indian tribe, trib-
al organization, or tribal consortium. 
‘‘(B) ADMINISTRATIVE, 
TRAINING, 
AND 
DATA COLLECTION EXPENDITURES.—The Sec-
retary shall, by regulation, determine the pro-
portions to be paid to Indian tribes, tribal orga-
nizations, and tribal consortiums pursuant to 
section 474(a)(3) for purposes of this section 
(and for purposes of payments made under an 
arrangement 
described 
in 
section 
472(a)(2)(B)(iii)(III)), except that in no case 
shall an Indian tribe, a tribal organization, or 
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a tribal consortium receive a lesser proportion 
than the corresponding amount specified for a 
State in that section. 
‘‘(C) 
SOURCES
OF
NON-FEDERAL 
SHARE.—An Indian tribe, tribal organization, 
or tribal consortium may use Federal, State, 
tribal, or private funds, which may be in kind, 
fairly evaluated, including plant, equipment, ad-
ministration, and services, to match payments 
for which the tribe, organization, or consortium 
is eligible under section 474. 
‘‘(3) MODIFICATION
OF
OTHER
REQUIRE-
MENTS.—On the request of an Indian tribe, tribal 
organization, or a tribal consortium, the Secretary 
may modify any requirement under this part if, after 
consulting with the Indian tribe, tribal organization, 
or tribal consortium, the Secretary determines that 
modification of the requirement would advance the 
best interests and the safety of children served by 
the Indian tribe, tribal organization, or tribal con-
sortium. 
‘‘(4) CONSORTIUM.—The participating Indian 
tribes or tribal organizations of a tribal consortium 
may develop and submit a single plan under section 
471 that meets the requirements of this section. 
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‘‘(d) COOPERATIVE AGREEMENTS.— 
‘‘(1) IN GENERAL.—An Indian tribe, a tribal 
organization, or a tribal consortium and a State may 
enter into a cooperative agreement for the adminis-
tration or payment of funds under this part. 
‘‘(2) APPLICATION AND ENFORCEMENT OF IN-
CORPORATED PROVISIONS OF THIS SECTION.—If an 
Indian tribe, a tribal organization, or a tribal con-
sortium and a State enter into a cooperative agree-
ment that incorporates any of the provisions of this 
section, those provisions shall be valid and enforce-
able. 
‘‘(3) PRIOR AGREEMENTS IN EFFECT.—Any co-
operative agreement described in paragraph (1) that 
is in effect as of the date of enactment of this sec-
tion, shall remain in full force and effect subject to 
the right of either party to the agreement to revoke 
or modify the agreement pursuant to the terms of 
the agreement. 
‘‘(e) JOHN H. CHAFEE FOSTER CARE INDEPEND-
ENCE PROGRAM.—Except as provided in section 477(j), 
subsection (b) of this section shall not apply with respect 
to the John H. Chafee Foster Care Independence Program 
established under section 477 (or with respect to payments 
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made under section 474(a)(4) or grants made under sec-
tion 474(e)).’’. 
(c) APPLICATION
OF FEDERAL MATCHING RATE 
THAT WOULD APPLY TO INDIAN TRIBES, TRIBAL ORGA-
NIZATIONS, OR TRIBAL CONSORTIA TO EXPENDITURES 
UNDER STATE AGREEMENTS OR AN AGREEMENT WITH 
THE SECRETARY.— 
(1) FOSTER CARE MAINTENANCE AND ADOP-
TION ASSISTANCE PAYMENTS.—Paragraphs (1) and 
(2) of section 474(a) of such Act (42 U.S.C. 674(a)) 
are each amended by inserting ‘‘(or, with respect to 
such payments made during such quarter under an 
agreement entered into by the State and an Indian 
tribe, tribal organization, or tribal consortium, or 
under 
an 
arrangement 
described 
in 
section 
472(a)(2)(B)(iii)(III), an amount equal to the Fed-
eral medical assistance percentage that would apply 
under subsection (c)(2)(A) of section 479B (in this 
paragraph referred to as the ‘tribal FMAP’) if such 
Indian tribe, tribal organization, or tribal consortium 
made such payments under a program operated 
under that section, unless the tribal FMAP is less 
than the Federal medical assistance percentage that 
applies to the State)’’ before the semicolon. 
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(2) ADMINISTRATIVE EXPENDITURES.—Section 
474(a)(3) of such Act (42 U.S.C. 674(a)(3)) is 
amended— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘section 472(i)’’ and inserting 
‘‘subparagraph (E) and section 472(i)’’; 
(B) in subparagraph (D), by striking 
‘‘and’’ at the end; 
(C) by redesignating subparagraph (E) as 
subparagraph (F); and 
(D) by inserting after subparagraph (D) 
the following: 
‘‘(E) in the case of a State that has en-
tered into an agreement with an Indian tribe, 
tribal organization, or tribal consortium (or an 
Indian tribe, tribal organization, or tribal con-
sortium with an arrangement described in sec-
tion 472(a)(2)(B)(iii)(III)), an amount equal to 
the proportions that would be paid to such 
tribe, organization, or consortium pursuant to 
regulations issued under section 479B(c)(2)(B) 
if the tribe, organization, or consortium oper-
ated a program under that section; and’’. 
(d) HOLD HARMLESS FOR INDIAN FAMILIES RE-
CEIVING FOSTER CARE MAINTENANCE PAYMENTS
OR 
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ADOPTION ASSISTANCE.—Nothing in the amendments 
made by this Act shall be construed as authorization to 
terminate funding to any Indian or Indian family cur-
rently receiving foster care maintenance payments or 
adoption assistance on behalf of a child and for which the 
State receives Federal matching payments under para-
graph (1) or (2) of section 474(a) of the Social Security 
Act, regardless of whether a cooperative agreement be-
tween the State and an Indian tribe, tribal organization, 
or tribal consortium is in effect pursuant to subsection (d) 
of section 479B(d) of such Act, or an Indian tribe, tribal 
organization, or tribal consortium elects to operate a fos-
ter care and adoption assistance program directly under 
such section 479B. 
(e) NONAPPLICATION OF CERTAIN ELIGIBILITY RE-
QUIREMENTS FOR INDIAN CHILDREN.—Section 472(a) of 
such Act (42 U.S.C. 672(a)) is amended by adding at the 
end the following: 
‘‘(5) NONAPPLICATION OF CERTAIN REQUIRE-
MENTS FOR INDIAN CHILDREN.—In the case of an 
Indian tribe, tribal organization, or tribal consortium 
that assumes responsibility for administering the 
program under this part through a cooperative 
agreement with the State under section 479B(d), or 
that elects to operate a foster care and adoption as-
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sistance program directly under section 479B, the 
following rules shall apply: 
‘‘(A) USE OF AFFIDAVITS, ETC.—The re-
quirement in paragraph (1) shall not be inter-
preted so as to prohibit the use of affidavits or 
nunc pro tunc orders as verification documents 
in support of the reasonable efforts and con-
trary to the welfare of the child judicial deter-
minations required under such paragraph. 
‘‘(B) RESIDENCY REQUIREMENT IMPOSED 
UNDER
AFDC
STATE
PLAN.—Notwithstanding 
paragraph (3)(A), any residency requirement 
imposed under the State plan referred to in 
such paragraph shall not apply with respect to 
a child for whom an Indian tribe, tribal organi-
zation, or tribal consortium assumes responsi-
bility.’’. 
(f) AUTHORITY TO RECEIVE PORTION OF STATE AL-
LOTMENT AS PART OF AN AGREEMENT TO OPERATE THE 
JOHN H. CHAFEE FOSTER CARE INDEPENDENCE PRO-
GRAM.— 
(1) IN GENERAL.—Section 477 of such Act (42 
U.S.C. 677) is amended by adding at the end the 
following: 
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‘‘(j) AUTHORITY FOR AN INDIAN TRIBE, TRIBAL OR-
GANIZATION, OR TRIBAL CONSORTIUM TO RECEIVE AN 
ALLOTMENT.— 
‘‘(1) IN GENERAL.—An Indian tribe, tribal or-
ganization, or tribal consortium with a plan ap-
proved under section 479B, which is receiving fund-
ing to provide foster care under this part pursuant 
to a cooperative agreement with a State, or that pro-
vides child welfare services and protections in ac-
cordance with an arrangement submitted to the Sec-
retary under section 472(a)(2)(B)(iii)(III), may 
apply for an allotment out of any funds authorized 
by paragraph (1) or (2) (or both) of subsection (h) 
of this section. 
‘‘(2) APPLICATION.—An Indian tribe, tribal or-
ganization, or tribal consortium desiring an allot-
ment under paragraph (1) shall submit an applica-
tion to the Secretary to directly receive such allot-
ment that includes a plan that satisfies such require-
ments of paragraphs (2) and (3) of subsection (b) 
as the Secretary determines are appropriate. 
‘‘(3) PAYMENTS.—The Secretary shall pay an 
Indian tribe, tribal organization, or tribal consortium 
with an application and plan approved under this 
subsection from the allotment determined for the 
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CHAFEE PROGRAM.—Section 477(b)(3)(G) of such 
Act (42 U.S.C. 677(b)(3)(G)) is amended— 
(A) by striking ‘‘and that’’ and inserting 
‘‘that’’; and 
(B) by striking the period and inserting ‘‘; 
and that each Indian tribe, tribal organization, 
or tribal consortium in the State that does not 
receive an allotment under subsection (j)(4) for 
a fiscal year may enter into a cooperative agree-
ment or contract with the State to administer, 
supervise, or oversee the programs to be carried 
out under the plan with respect to the Indian 
children who are eligible for such programs and 
who are under the authority of the Indian tribe 
and to receive from the State an appropriate 
portion of the State allotment under subsection 
(c) for the cost of such administration, super-
vision, or oversight.’’. 
(g) RULE
OF
CONSTRUCTION.—Nothing in the 
amendments made by this Act shall be construed as affect-
ing the responsibility of a State— 
(1) as part of the plan approved under section 
471 of the Social Security Act (42 U.S.C. 671), to 
provide foster care maintenance payments and adop-
tion assistance for Indian children who are eligible 
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for such payments or assistance and who are not 
otherwise being served by an Indian tribe, tribal or-
ganization, or tribal consortium pursuant to a foster 
care and adoption assistance program operated 
under section 479B of such Act; or 
(2) as part of the plan approved under section 
477 of such Act (42 U.S.C. 677) to administer, su-
pervise, or oversee programs carried out under that 
plan on behalf of Indian children who are eligible for 
such programs if such children are not otherwise 
being served by an Indian tribe, tribal organization, 
or tribal consortium pursuant to an approved plan 
under section 477(j) or a cooperative agreement or 
contract entered into under section 477(b)(3)(G) of 
such Act. 
(h) REGULATIONS.—Not later than 1 year after the 
date of enactment of this section, the Secretary, in con-
sultation with Indian tribes, tribal organizations, tribal 
consortia, and affected States, shall promulgate regula-
tions to carry out the amendments made by this section. 
(i) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2010. 
SEC. 8. HEALTH OVERSIGHT AND COORDINATION PLAN. 
Section 422(b)(15) of the Social Security Act (42 
U.S.C. 622(b)(15)) is amended to read as follows: 
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‘‘(15)(A) provides that the State will develop, in 
coordination and collaboration with the State agency 
referred to in paragraph (1) and the State agency 
responsible for administering the State plan ap-
proved under title XIX, and in consultation with pe-
diatricians, other experts in health care, and experts 
in and recipients of child welfare services, a plan for 
the ongoing oversight and coordination of health 
care services for any child in a foster care place-
ment, which shall ensure a coordinated strategy to 
identify and respond to the health care needs of chil-
dren in foster care placements, including mental 
health and dental health needs, and shall include an 
outline of— 
‘‘(i) a schedule for initial and follow-up 
health screenings that meet reasonable stand-
ards of medical practice; 
‘‘(ii) how health needs identified through 
screenings will be monitored and treated; 
‘‘(iii) how medical information for children 
in care will be updated and appropriately 
shared, which may include the development and 
implementation of an electronic health record; 
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‘‘(iv) steps to ensure continuity of health 
care services, which may include the establish-
ment of a medical home for every child in care; 
‘‘(v) the oversight of prescription medi-
cines; and 
‘‘(vi) how the State actively consults with 
and involves physicians or other appropriate 
medical professionals in assessing the health 
and well-being of children in foster care and in 
determining appropriate medical treatment for 
the children; and 
‘‘(B) subparagraph (A) shall not be construed 
to reduce or limit the responsibility of the State 
agency responsible for administering the State plan 
approved under title XIX to administer and provide 
care and services for children with respect to whom 
services are provided under the State plan developed 
pursuant to this subpart;’’. 
SEC. 9. EDUCATIONAL STABILITY. 
(a) IN GENERAL.—Section 475 of the Social Security 
Act (42 U.S.C. 675), as amended by section 2(c)(4) of 
this Act, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (C), by striking 
clause (iv) and redesignating clauses (v) 
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through (viii) as clauses (iv) through (vii), re-
spectively; and 
(B) by adding at the end the following: 
‘‘(G) A plan for ensuring the educational 
stability of the child while in foster care, includ-
ing— 
‘‘(i) assurances that the placement of 
the child in foster care takes into account 
the appropriateness of the current edu-
cational setting and the proximity to the 
school in which the child is enrolled at the 
time of placement; and 
‘‘(ii)(I) an assurance that the State 
agency has coordinated with appropriate 
local educational agencies (as defined 
under section 9101 of the Elementary and 
Secondary Education Act of 1965) to en-
sure that the child remains in the school in 
which the child is enrolled at the time of 
placement; or 
‘‘(II) if remaining in such school is 
not in the best interests of the child, assur-
ances by the State agency and the local 
educational agencies to provide immediate 
and appropriate enrollment in a new 
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school, with all of the educational records 
of the child provided to the school.’’; and 
(2) in the 1st sentence of paragraph (4)(A)— 
(A) by striking ‘‘and reasonable’’ and in-
serting ‘‘reasonable’’; and 
(B) by inserting ‘‘, and reasonable travel 
for the child to remain in the school in which 
the child is enrolled at the time of placement’’ 
before the period. 
(b) EDUCATIONAL ATTENDANCE REQUIREMENT.— 
Section 471(a) of the Social Security Act (42 U.S.C. 
671(a)), as amended by sections 2(a) and 4 of this Act, 
is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(28); 
(2) by striking the period at the end of para-
graph (29) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(30) provides assurances that each child who 
has attained the minimum age for compulsory school 
attendance under State law and with respect to 
whom there is eligibility for a payment under the 
State plan is a full-time elementary or secondary 
school student or has completed secondary school, 
and for purposes of this paragraph, the term ‘ele-
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SEC. 10. SIBLING PLACEMENT. 
Section 471(a) of the Social Security Act (42 U.S.C. 
671(a)), as amended by sections 2(a), 4, and 9(b) of this 
Act, is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(29); 
(2) by striking the period at the end of para-
graph (30) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(31) provides that reasonable efforts shall be 
made to place siblings removed from their home in 
the same foster care, kinship guardianship, or adop-
tive placement unless the State documents that such 
a joint placement would be contrary to the safety or 
well-being of any of the siblings.’’. 
SEC. 11. ADOPTION INCENTIVES PROGRAM. 
(a) 5-YEAR EXTENSION.—Section 473A of the Social 
Security Act (42 U.S.C. 673b) is amended— 
(1) in subsection (b)(4), by striking ‘‘in the 
case of fiscal years 2001 through 2007,’’; 
(2) in subsection (b)(5), by striking ‘‘1998 
through 2007’’ and inserting ‘‘2008 through 2012’’; 
(3) in subsection (c)(2), by striking ‘‘each of 
fiscal years 2002 through 2007’’ and inserting ‘‘a 
fiscal year’’; and 
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(4) in each of subsections (h)(1)(D), and (h)(2), 
by striking ‘‘2008’’ and inserting ‘‘2013’’. 
(b) UPDATING OF FISCAL YEAR USED IN DETER-
MINING
BASE
NUMBERS
OF
ADOPTIONS.—Section 
473A(g) of such Act (42 U.S.C. 673b(g)) is amended— 
(1) in paragraph (3), by striking ‘‘means’’ and 
all that follows and inserting ‘‘means, with respect 
to any fiscal year, the number of foster child adop-
tions in the State in fiscal year 2007.’’; 
(2) in paragraph (4)— 
(A) by inserting ‘‘that are not older child 
adoptions’’ before ‘‘for a State’’; and 
(B) by striking ‘‘means’’ and all that fol-
lows and inserting ‘‘means, with respect to any 
fiscal year, the number of special needs adop-
tions that are not older child adoptions in the 
State in fiscal year 2007.’’; and 
(3) in paragraph (5), by striking ‘‘means’’ and 
all that follows and inserting ‘‘means, with respect 
to any fiscal year, the number of older child adop-
tions in the State in fiscal year 2007.’’. 
(c) INCREASE IN INCENTIVE PAYMENTS FOR SPE-
CIAL NEEDS ADOPTIONS
AND OLDER CHILD ADOP-
TIONS.—Section 473A(d)(1) of such Act (42 U.S.C. 
673b(d)(1)) is amended— 
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(1) in subparagraph (B), by striking ‘‘$2,000’’ 
and inserting ‘‘$4,000’’; and 
(2) in subparagraph (C), by striking ‘‘$4,000’’ 
and inserting ‘‘$8,000’’. 
(d) 24-MONTH AVAILABILITY
OF PAYMENTS
TO 
STATES.—Section 473A(e) of such Act (42 U.S.C. 
673b(e)) is amended— 
(1) in the heading, by striking ‘‘2-year’’ and in-
serting ‘‘24-month’’; and 
(2) by striking ‘‘through the end of the suc-
ceeding fiscal year’’ and inserting ‘‘for the 24-month 
period beginning with the month in which the pay-
ments are made’’. 
SEC. 12. INFORMATION ON ADOPTION TAX CREDIT. 
Section 471(a) of the Social Security Act (42 U.S.C. 
671(a)), as amended by sections 2(a), 4, 9(b), and 10 of 
this Act, is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(30); 
(2) by striking the period at the end of para-
graph (31) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(32) provides that the State will inform any 
individual who is adopting, or whom the State is 
made aware is considering adopting, a child who is 
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in foster care under the responsibility of the State 
of the potential eligibility of the individual for a 
Federal tax credit under section 23 of the Internal 
Revenue Code.’’. 
SEC. 13. MODIFICATION OF FOSTER CARE MATCHING RATE 
FOR THE DISTRICT OF COLUMBIA TO CON-
FORM WITH MEDICAID MATCHING RATE. 
Section 474(a) of the Social Security Act (42 U.S.C. 
674(a)) is amended in each of paragraphs (1) and (2) by 
striking ‘‘(as defined in section 1905(b) of this Act)’’ and 
inserting ‘‘(which shall be as defined in section 1905(b), 
in the case of a State other than the District of Columbia, 
or 70 percent, in the case of the District of Columbia)’’. 
SEC. 14. COLLECTION OF UNEMPLOYMENT COMPENSATION 
DEBTS RESULTING FROM FRAUD. 
(a) IN GENERAL.—Section 6402 of the Internal Rev-
enue Code (relating to authority to make credits or re-
funds) is amended by redesignating subsections (f) 
through (k) as subsections (g) through (l), respectively, 
and by inserting after subsection (e) the following new 
subsection: 
‘‘(f) COLLECTION OF UNEMPLOYMENT COMPENSA-
TION DEBTS RESULTING FROM FRAUD.— 
‘‘(1) IN GENERAL.—Upon receiving notice from 
any State that a named person owes a covered un-
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employment compensation debt to such State, the 
Secretary shall, under such conditions as may be 
prescribed by the Secretary— 
‘‘(A) reduce the amount of any overpay-
ment payable to such person by the amount of 
such covered unemployment compensation debt; 
‘‘(B) pay the amount by which such over-
payment is reduced under subparagraph (A) to 
such State and notify such State of such per-
son’s name, taxpayer identification number, ad-
dress, and the amount collected; and 
‘‘(C) notify the person making such over-
payment that the overpayment has been re-
duced by an amount necessary to satisfy a cov-
ered unemployment compensation debt. 
If an offset is made pursuant to a joint return, the 
notice under subparagraph (B) shall include the 
names, taxpayer identification numbers, and ad-
dresses of each person filing such return and the no-
tice under subparagraph (C) shall include informa-
tion related to the rights of a spouse of a person 
subject to such an offset. 
‘‘(2) PRIORITIES FOR OFFSET.—Any overpay-
ment by a person shall be reduced pursuant to this 
subsection— 
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‘‘(A) after such overpayment is reduced 
pursuant to— 
‘‘(i) subsection (a) with respect to any 
liability for any internal revenue tax on the 
part of the person who made the overpay-
ment; 
‘‘(ii) subsection (c) with respect to 
past-due support; and 
‘‘(iii) subsection (d) with respect to 
any past-due, legally enforceable debt owed 
to a Federal agency; and 
‘‘(B) before such overpayment is credited 
to the future liability for any Federal internal 
revenue tax of such person pursuant to sub-
section (b). 
If the Secretary receives notice from a State or 
States of more than one debt subject to paragraph 
(1) or subsection (e) that is owed by a person to 
such State or States, any overpayment by such per-
son shall be applied against such debts in the order 
in which such debts accrued. 
‘‘(3) NOTICE; CONSIDERATION OF EVIDENCE.— 
No State may take action under this subsection until 
such State— 
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‘‘(A) notifies the person owing the covered 
unemployment compensation debt that the 
State proposes to take action pursuant to this 
section; 
‘‘(B) provides such person at least 60 days 
to present evidence that all or part of such li-
ability is not legally enforceable or due to fraud; 
‘‘(C) considers any evidence presented by 
such person and determines that an amount of 
such debt is legally enforceable and due to 
fraud; and 
‘‘(D) satisfies such other conditions as the 
Secretary may prescribe to ensure that the de-
termination made under subparagraph (C) is 
valid and that the State has made reasonable 
efforts to obtain payment of such covered un-
employment compensation debt. 
‘‘(4) COVERED UNEMPLOYMENT COMPENSATION 
DEBT.—For purposes of this subsection, the term 
‘covered unemployment compensation debt’ means— 
‘‘(A) a past-due debt for erroneous pay-
ment of unemployment compensation due to 
fraud which has become final under the law of 
a State certified by the Secretary of Labor pur-
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suant to section 3304 and which remains uncol-
lected; 
‘‘(B) contributions due to the unemploy-
ment fund of a State for which the State has 
determined the person to be liable due to fraud; 
and 
‘‘(C) any penalties and interest assessed on 
such debt. 
‘‘(5) REGULATIONS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
issue regulations prescribing the time and man-
ner in which States must submit notices of cov-
ered unemployment compensation debt and the 
necessary information that must be contained 
in or accompany such notices. The regulations 
may specify the minimum amount of debt to 
which the reduction procedure established by 
paragraph (1) may be applied. 
‘‘(B) FEE PAYABLE TO SECRETARY.—The 
regulations may require States to pay a fee to 
the Secretary, which may be deducted from 
amounts collected, to reimburse the Secretary 
for the cost of applying such procedure. Any fee 
paid to the Secretary pursuant to the preceding 
sentence shall be used to reimburse appropria-
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tions which bore all or part of the cost of apply-
ing such procedure. 
‘‘(C) SUBMISSION OF NOTICES THROUGH 
SECRETARY OF LABOR.—The regulations may 
include a requirement that States submit no-
tices of covered unemployment compensation 
debt to the Secretary via the Secretary of Labor 
in accordance with procedures established by 
the Secretary of Labor. Such procedures may 
require States to pay a fee to the Secretary of 
Labor to reimburse the Secretary of Labor for 
the costs of applying this subsection. Any such 
fee shall be established in consultation with the 
Secretary of the Treasury. Any fee paid to the 
Secretary of Labor may be deducted from 
amounts collected and shall be used to reim-
burse the appropriation account which bore all 
or part of the cost of applying this subsection. 
‘‘(6) ERRONEOUS
PAYMENT
TO
STATE.—Any 
State receiving notice from the Secretary that an er-
roneous payment has been made to such State under 
paragraph (1) shall pay promptly to the Secretary, 
in accordance with such regulations as the Secretary 
may prescribe, an amount equal to the amount of 
such erroneous payment (without regard to whether 
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any other amounts payable to such State under such 
paragraph have been paid to such State).’’. 
(b) DISCLOSURE
OF CERTAIN INFORMATION
TO 
STATES REQUESTING REFUND OFFSETS FOR LEGALLY 
ENFORCEABLE STATE UNEMPLOYMENT COMPENSATION 
DEBT RESULTING FROM FRAUD.— 
(1) GENERAL RULE.—Paragraph (3) of section 
6103(a) of such Code is amended by inserting 
‘‘(10),’’ after ‘‘(6),’’. 
(2) DISCLOSURE TO DEPARTMENT OF LABOR 
AND ITS AGENT.—Paragraph (10) of section 6103(l) 
of such Code is amended— 
(A) by striking ‘‘(c), (d), or (e)’’ each place 
it appears in the heading and text and inserting 
‘‘(c), (d), (e), or (f)’’, 
(B) in subparagraph (A) by inserting ‘‘, to 
officers and employees of the Department of 
Labor and its agent for purposes of facilitating 
the exchange of data in connection with a re-
quest made under subsection (f)(5) of section 
6402,’’ after ‘‘section 6402’’, and 
(C) in subparagraph (B) by inserting ‘‘, 
and any agents of the Department of Labor,’’ 
after ‘‘agency’’ the first place it appears. 
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(3) SAFEGUARDS.—Paragraph (4) of section 
6103(p) of such Code is amended— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘(l)(16),’’ and inserting 
‘‘(l)(10), (16),’’; 
(B) in subparagraph (F)(i), by striking 
‘‘(l)(16),’’ and inserting ‘‘(l)(10), (16),’’; and 
(C) in the matter following subparagraph 
(F)(iii)— 
(i) in each of the first two places it 
appears, by striking ‘‘(l)(16),’’ and insert-
ing ‘‘(l)(10), (16),’’; 
(ii) by inserting ‘‘(10),’’ after ‘‘para-
graph (6)(A),’’; and 
(iii) in each of the last two places it 
appears, by striking ‘‘(l)(16)’’ and insert-
ing ‘‘(l)(10) or (16)’’. 
(c) EXPENDITURES FROM STATE FUND.—Section 
3304(a)(4) of such Code is amended— 
(1) in subparagraph (E), by striking ‘‘and’’ 
after the semicolon; 
(2) in subparagraph (F), by inserting ‘‘and’’ 
after the semicolon; and 
(3) by adding at the end the following new sub-
paragraph: 
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‘‘(G) with respect to amounts of covered 
unemployment compensation debt (as defined in 
section 6402(f)(4)) collected under section 
6402(f)— 
‘‘(i) amounts may be deducted to pay 
any fees authorized under such section; 
and 
‘‘(ii) the penalties and interest de-
scribed in section 6402(f)(4)(B) may be 
transferred to the appropriate State fund 
into which the State would have deposited 
such amounts had the person owing the 
debt paid such amounts directly to the 
State;’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 6402 of such Code 
is amended by striking ‘‘(c), (d), and (e),’’ and in-
serting ‘‘(c), (d), (e), and (f)’’. 
(2) Paragraph (2) of section 6402(d) of such 
Code is amended by striking ‘‘and before such over-
payment is reduced pursuant to subsection (e)’’ and 
inserting ‘‘and before such overpayment is reduced 
pursuant to subsections (e) and (f)’’. 
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(3) Paragraph (3) of section 6402(e) of such 
Code is amended in the last sentence by inserting 
‘‘or subsection (f)’’ after ‘‘paragraph (1)’’. 
(4) Subsection (g) of section 6402 of such 
Code, as redesignated by subsection (a), is amended 
by striking ‘‘(c), (d), or (e)’’ and inserting ‘‘(c), (d), 
(e), or (f)’’. 
(5) Subsection (i) of section 6402 of such Code, 
as redesignated by subsection (a), is amended by 
striking ‘‘subsection (c) or (e)’’ and inserting ‘‘sub-
section (c), (e), or (f)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to refunds payable under section 
6402 of the Internal Revenue Code of 1986 on or after 
the date of enactment of this Act. 
SEC. 15. INVESTMENT OF OPERATING CASH. 
Section 323 of title 31, United States Code, is 
amended to read as follows: 
‘‘§ 323. Investment of operating cash 
‘‘(a) To manage United States cash, the Secretary 
of the Treasury may invest any part of the operating cash 
of the Treasury for not more than 90 days. The Secretary 
may invest the operating cash of the Treasury in— 
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‘‘(1) obligations of depositories maintaining 
Treasury tax and loan accounts secured by pledged 
collateral acceptable to the Secretary; 
‘‘(2) obligations of the United States Govern-
ment; and 
‘‘(3) repurchase agreements with parties accept-
able to the Secretary. 
‘‘(b) Subsection (a) of this section does not require 
the Secretary to invest a cash balance held in a particular 
account. 
‘‘(c) The Secretary shall consider the prevailing mar-
ket in prescribing rates of interest for investments under 
subsection (a)(1) of this section. 
‘‘(d)(1) The Secretary of the Treasury shall submit 
each fiscal year to the appropriate committees a report 
detailing the investment of operating cash under sub-
section (a) for the preceding fiscal year. The report shall 
describe the Secretary’s consideration of risks associated 
with investments and the actions taken to manage such 
risks. 
‘‘(2) For purposes of paragraph (1), the term ‘appro-
priate committees’ means the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate.’’. 
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SEC. 16. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as otherwise provided in 
this Act, each amendment made by this Act to part B or 
E of title IV of the Social Security Act shall take effect 
on the date of the enactment of this Act, and shall apply 
to payments under the part amended for quarters begin-
ning on or after the effective date of the amendment. 
(b) DELAY PERMITTED IF STATE LEGISLATION RE-
QUIRED.—In the case of a State plan approved under part 
B or E of title IV of the Social Security Act which the 
Secretary of Health and Human Services determines re-
quires State legislation (other than legislation appro-
priating funds) in order for the plan to meet the additional 
requirements imposed by this Act, the State plan shall not 
be regarded as failing to comply with the requirements of 
such part solely on the basis of the failure of the plan 
to meet such additional requirements before the 1st day 
of the 1st calendar quarter beginning after the close of 
the 1st regular session of the State legislature that ends 
after the 1-year period beginning with the date of the en-
actment of this Act. For purposes of the preceding sen-
tence, in the case of a State that has a 2-year legislative 
session, each year of the session is deemed to be a separate 
regular session of the State legislature. 
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SEC. 17. NO FEDERAL FUNDING TO UNLAWFULLY PRESENT 
INDIVIDUALS. 
Nothing in this Act shall be construed to alter prohi-
bitions on Federal payments to individuals who are unlaw-
fully present in the United States. 
Æ 
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