I 
114TH CONGRESS 
1ST SESSION H. R. 2721 
To strengthen and expand proven anti-poverty programs and initiatives. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 10, 2015 
Ms. LEE (for herself, Ms. BASS, Mrs. BEATTY, Mr. CARSON of Indiana, Mr. 
CICILLINE, Mr. CONYERS, Mr. COURTNEY, Mr. CROWLEY, Mrs. DAVIS of 
California, Mr. DESAULNIER, Mrs. DINGELL, Mr. ELLISON, Ms. 
FRANKEL of Florida, Mr. GALLEGO, Ms. HAHN, Ms. JACKSON LEE, Mr. 
JOHNSON of Georgia, Ms. KUSTER, Mrs. LOWEY, Ms. MCCOLLUM, Mr. 
MCNERNEY, Ms. MOORE, Mr. NADLER, Mr. NORCROSS, Mr. PAYNE, Mr. 
RANGEL, Mr. RUSH, Ms. SCHAKOWSKY, Ms. SEWELL of Alabama, Mr. 
SCOTT of Virginia, Ms. SLAUGHTER, Ms. SPEIER, Mr. TAKANO, Mrs. 
WATSON COLEMAN, Ms. WILSON of Florida, Mr. VARGAS, Ms. NORTON, 
Mrs. TORRES, Mrs. LAWRENCE, and Mr. MCGOVERN) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on House Administration, Education 
and the Workforce, Financial Services, Agriculture, Transportation and 
Infrastructure, Rules, the Budget, Oversight and Government Reform, 
and the Judiciary, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To strengthen and expand proven anti-poverty programs and 
initiatives. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pathways Out of Pov-
erty Act of 2015’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
DIVISION A—EDUCATION 
TITLE I—STRONG START FOR AMERICA’S CHILDREN 
Subtitle A—Access to Voluntary Prekindergarten for Low- and Moderate- 
Income Families 
Sec. 111. Purposes. 
Sec. 112. Definitions. 
Sec. 113. Program authorization. 
Sec. 114. Allotments and reservations of funds. 
Sec. 115. State eligibility criteria. 
Sec. 116. State applications. 
Sec. 117. State use of funds. 
Sec. 118. Additional prekindergarten services. 
Sec. 119. Performance measures and targets. 
Sec. 120. Matching requirements. 
Sec. 121. Eligible local entity applications. 
Sec. 122. Required subgrant activities. 
Sec. 123. Report and evaluation. 
Sec. 124. Prohibition of required participation or use of funds for assessments. 
Sec. 125. Coordination with Head Start programs. 
Sec. 126. Technical assistance in program administration. 
Sec. 127. Authorization of appropriations. 
Subtitle B—Prekindergarten Development Grants 
Sec. 151. Prekindergarten development grants. 
TITLE II—RESTORING SUMMER PELL GRANTS 
Sec. 201. Federal Pell Grants. 
TITLE III—RESTORING TITLE IV ABILITY-TO-BENEFIT 
ELIGIBILITY 
Sec. 301. Ability-to-benefit eligibility. 
TITLE IV—YOUTH PROMISE/FEDERAL COORDINATION OF LOCAL 
AND TRIBAL JUVENILE JUSTICE INFORMATION AND EFFORTS 
Sec. 401. PROMISE Advisory Panel. 
Sec. 402. Geographic assessment of resource allocation. 
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TITLE V—PROMISE GRANTS 
Sec. 501. Purposes. 
Sec. 502. Definitions. 
Subtitle A—PROMISE Assessment and Planning Grants 
Sec. 510. PROMISE Assessment and Planning grants authorized. 
Sec. 511. PROMISE Coordinating Councils. 
Sec. 512. Needs and strengths assessment. 
Sec. 513. PROMISE Plan components. 
Sec. 514. Authorization of appropriations. 
Subtitle B—PROMISE Implementation Grants 
Sec. 530. PROMISE Implementation grants authorized. 
Sec. 531. PROMISE Implementation grant application requirements. 
Sec. 532. Grant award guidelines. 
Sec. 533. Reports. 
Sec. 534. Authorization of appropriations. 
Subtitle C—General PROMISE Grant Provisions 
Sec. 540. Nonsupplanting clause. 
Sec. 541. Grant application review panel. 
Sec. 542. Evaluation of PROMISE grant programs. 
DIVISION B—HOUSING 
TITLE VI—COMMON SENSE HOUSING INVESTMENT 
Sec. 601. Congressional findings. 
Sec. 602. Replacement of mortgage interest deduction with mortgage interest 
credit. 
Sec. 603. Deduction allowed for interest and taxes relating to land for dwelling 
purposes owned or leased by cooperative housing corporations. 
Sec. 604. Use of mortgage interest savings to increase low-income housing tax 
credit. 
Sec. 605. Use of mortgage interest savings for affordable housing programs. 
TITLE VII—LOW-INCOME HOUSING TAX CREDIT FOR HOMELESS 
YOUTH 
Sec. 701. Students who were homeless youths or homeless veterans permitted 
to occupy low-income housing units. 
TITLE VIII—RENTERS TAX CREDIT 
Sec. 801. Renters tax credit. 
DIVISION C—NUTRITION 
TITLE IX—IMPROVING TEMPORARY ASSISTANCE TO NEEDY 
FAMILIES PROGRAM 
Sec. 901. References. 
Sec. 902. State plans required to address whether and how States will provide 
assistance to neediest geographic areas. 
Sec. 903. Funding of the TANF program. 
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Sec. 904. Work requirements. 
Sec. 905. Work rules. 
Sec. 906. Prohibition on imposing limit of less than 60 months on duration of 
assistance. 
Sec. 907. Response of TANF program to economic recessions. 
Sec. 908. Requirement that States use merit-based system in administration of 
TANF programs. 
Sec. 909. Ban on using Federal TANF funds to replace State and local spend-
ing that does not meet the definition of qualified State expendi-
tures. 
Sec. 910. TANF assistance to meet basic family economic needs. 
Sec. 911. State plans and reports on child poverty. 
Sec. 912. Requirement that States adopt standards and procedures to address 
domestic and sexual violence among TANF recipients. 
Sec. 913. Child care entitlement. 
Sec. 914. Child support enforcement. 
Sec. 915. State option to extend eligibility for assistance to children through 
age 21; prohibition on considering financial aid tied to edu-
cation of child in determining eligibility for, or amount of as-
sistance; prohibition on imposing additional requirements based 
on educational enrollment of child. 
Sec. 916. Elimination of certain other bars to TANF assistance. 
Sec. 917. Effective date. 
TITLE X—EMPLOYMENT ADVANCEMENT, RETENTION, AND 
NAVIGATION ACT 
Sec. 1011. Focus on employment. 
Sec. 1012. Modification relating to the Contingency Fund. 
Sec. 1013. Training for in-demand jobs. 
Sec. 1014. Effective date. 
TITLE XI—RESTORING SUPPLEMENTAL NUTRITION ASSISTANCE 
PROGRAMS FUNDING CUTS INSTITUTED IN FARM BILL (HEAT- 
AND-EAT) 
Sec. 1101. Restoration of standard utility allowances based on the receipt of 
energy assistance payments. 
TITLE XII—HELPING HUNGRY STUDENTS LEARN 
Sec. 1201. Findings. 
Sec. 1202. School Lunch Program. 
Sec. 1203. School Breakfast Program. 
Sec. 1204. Summer Electronic Benefits Transfer for Children program. 
Sec. 1205. Weekends and holidays without hunger. 
TITLE XIII—FOOD ASSISTANCE TO IMPROVE REINTEGRATION 
ACT 
Sec. 1301. Repeal of denial of benefits. 
DIVISION D—LABOR/JOB TRAINING 
TITLE XIV—ASSISTANCE FOR THE UNEMPLOYED AND 
PATHWAYS BACK TO WORK 
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Subtitle A—Supporting Unemployed Workers 
Sec. 1401. Short title. 
PART I—EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND 
CERTAIN EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT
OF 
SELF-EMPLOYMENT ASSISTANCE PROGRAM 
Sec. 1411. Extension of Emergency Unemployment Compensation program. 
Sec. 1412. Temporary extension of extended benefit provisions. 
Sec. 1413. Additional extended unemployment benefits under the Railroad Un-
employment Insurance Act. 
PART II—REEMPLOYMENT NOW PROGRAM 
Sec. 1421. Establishment of Reemployment NOW program. 
Sec. 1422. Distribution of funds. 
Sec. 1423. State plan. 
Sec. 1424. Bridge to Work program. 
Sec. 1425. Wage insurance. 
Sec. 1426. Enhanced reemployment strategies. 
Sec. 1427. Self-employment programs. 
Sec. 1428. Additional innovative programs. 
Sec. 1429. Guidance and additional requirements. 
Sec. 1430. Report of information and evaluations to Congress and the public. 
Sec. 1431. State. 
PART III—SHORT-TIME COMPENSATION PROGRAM 
Sec. 1441. Temporary financing of short-time compensation payments in States 
with programs in law. 
Sec. 1442. Temporary financing of short-time compensation agreements. 
Sec. 1443. Grants for short-time compensation programs. 
Sec. 1444. Assistance and guidance in implementing programs. 
Sec. 1445. Reports. 
Subtitle B—Long-Term Unemployed Hiring Preferences 
Sec. 1451. Long-term unemployed workers work opportunity tax credits. 
Subtitle C—Pathways Back to Work 
Sec. 1461. Short title. 
Sec. 1462. Authorization of appropriations. 
Sec. 1463. Availability of funds. 
Sec. 1464. Subsidized employment for unemployed, low-income adults. 
Sec. 1465. Summer employment and year-round employment opportunities for 
low-income youth. 
Sec. 1466. Work-based employment strategies of demonstrated effectiveness. 
Sec. 1467. General requirements. 
Sec. 1468. Definitions. 
Subtitle D—Prohibition of Discrimination in Employment on the Basis of an 
Individual’s Status as Unemployed 
Sec. 1471. Short title. 
Sec. 1472. Findings and purpose. 
Sec. 1473. Definitions. 
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Sec. 1474. Prohibited acts. 
Sec. 1475. Enforcement. 
Sec. 1476. Federal and State immunity. 
Sec. 1477. Relationship to other laws. 
Sec. 1478. Severability. 
Sec. 1479. Effective date. 
TITLE XV—LIVING AMERICAN WAGE 
Sec. 1501. Findings; sense of Congress. 
Sec. 1502. Minimum wage. 
DIVISION E—ANTI-POVERTY TAX PROVISION 
TITLE XVI—CHILD TAX CREDIT PERMANENCY 
Sec. 1601. Modifications of the child tax credit. 
TITLE XVII—EARNED INCOME TAX CREDIT 
Sec. 1701. Expansion of Earned Income Credit. 
TITLE XVIII—CHILD CARE ACCESS AND REFUNDABILITY 
EXPANSION ACT 
Sec. 1801. Credit for dependent care expenses. 
DIVISION F—MISCELLANEOUS 
TITLE XIX—POVERTY IMPACT TRIGGER 
Sec. 1901. Certain poverty impact legislation subject to point of order. 
Sec. 1902. Congressional Budget Office Poverty Impact Division. 
Sec. 1903. Exercise of rulemaking powers. 
Sec. 1904. Effective date. 
TITLE XX—HALF IN TEN ACT TO CREATE A NATIONAL 
STRATEGY TO REDUCE POVERTY 
Sec. 2001. Findings. 
Sec. 2002. Definitions. 
Sec. 2003. Establishment of the Federal Interagency Working Group on Reduc-
ing Poverty. 
Sec. 2004. Appointment and responsibilities of the Director. 
Sec. 2005. Consultation. 
Sec. 2006. Reports to Congress and the public. 
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DIVISION A—EDUCATION 
TITLE I—STRONG START FOR 
AMERICA’S CHILDREN 
Subtitle A—Access to Voluntary 
Prekindergarten for Low- and 
Moderate-Income Families 
SEC. 111. PURPOSES. 
The purposes of this subtitle are to— 
(1) establish a Federal-State partnership to 
provide access to high-quality public prekindergarten 
programs for all children from low-income and mod-
erate-income families to ensure that they enter kin-
dergarten prepared for success; 
(2) broaden participation in such programs to 
include children from additional middle-class fami-
lies; and 
(3) promote access to high-quality kindergarten, 
and high-quality early childhood education programs 
and settings for children. 
SEC. 112. DEFINITIONS. 
In this subtitle: 
(1) CHILD
WITH
A
DISABILITY.—The term 
‘‘child with a disability’’ has the meaning given the 
term in section 602 of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1401). 
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(2) COMPREHENSIVE EARLY LEARNING ASSESS-
MENT
SYSTEM.—The term ‘‘comprehensive early 
learning assessment system’’— 
(A) means a coordinated and comprehen-
sive system of multiple assessments, each of 
which is valid and reliable for its specified pur-
pose and for the population with which it will 
be used, that— 
(i) organizes information about the 
process and context of young children’s 
learning and development to help early 
childhood educators make informed in-
structional and programmatic decisions; 
and 
(ii) conforms to the recommendations 
of the National Research Council reports 
on early childhood; and 
(B) includes, at a minimum— 
(i) child screening measures; 
(ii) child formative assessments; 
(iii) measures of environmental qual-
ity; and 
(iv) measures of the quality of adult- 
child interactions. 
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(3) DUAL
LANGUAGE
LEARNER.—The term 
‘‘dual language learner’’ means an individual who is 
limited English proficient. 
(4) 
EARLY
CHILDHOOD
EDUCATION
PRO-
GRAM.—The term ‘‘early childhood education pro-
gram’’ has the meaning given the term under section 
103 of the Higher Education Act of 1965 (20 
U.S.C. 1003). 
(5) ELEMENTARY SCHOOL.—The term ‘‘elemen-
tary school’’ has the meaning given the term in sec-
tion 9101 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7801). 
(6) ELIGIBILITY DETERMINATION DATE.—The 
term ‘‘eligibility determination date’’ means the date 
used to determine eligibility for public elementary 
school in the community in which the eligible local 
entity involved is located. 
(7) ELIGIBLE LOCAL ENTITY.—The term ‘‘eligi-
ble local entity’’ means— 
(A) a local educational agency, including— 
(i) a charter school or a charter man-
agement organization that acts as a local 
educational agency; or 
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(ii) an educational service agency in 
partnership with a local educational agen-
cy; 
(B) an entity that carries out an early 
childhood education program; or 
(C) a consortium of entities described in 
subparagraph (A) or (B). 
(8) FULL-DAY.—The term ‘‘full-day’’ means a 
day that is— 
(A) equivalent to a full school day at the 
public elementary schools in a State; and 
(B) not less than 5 hours a day. 
(9) HIGH-QUALITY
PREKINDERGARTEN
PRO-
GRAM.—The term ‘‘high-quality prekindergarten 
program’’ means a prekindergarten program sup-
ported by an eligible local entity that includes, at a 
minimum, the following elements based on nationally 
recognized standards: 
(A) Serves children who— 
(i) are age 4 or children who are age 
3 or 4, by the eligibility determination date 
(including children who turn age 5 while 
attending the program); or 
(ii) have attained the legal age for 
State-funded prekindergarten. 
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(B) Requires high qualifications for staff, 
including that teachers meet the requirements 
of 1 of the following clauses: 
(i) The teacher has a bachelor’s de-
gree in early childhood education or a re-
lated field with coursework that dem-
onstrates competence in early childhood 
education. 
(ii) The teacher— 
(I) has a bachelor’s degree in any 
field; 
(II) has demonstrated knowledge 
of early childhood education by pass-
ing a State-approved assessment in 
early childhood education; 
(III) while employed as a teacher 
in the prekindergarten program, is en-
gaged in on-going professional devel-
opment in early childhood education 
for not less than 2 years; and 
(IV) not more than 3 years after 
starting employment as a teacher in 
the prekindergarten program, enrolls 
in and completes a State-approved ed-
ucator preparation program in which 
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the teacher receives training and sup-
port in early childhood education. 
(iii) The teacher has a bachelor’s de-
gree with a credential, license, or endorse-
ment that demonstrates competence in 
early childhood education. 
(C) Maintains an evidence-based maximum 
class size. 
(D) Maintains an evidence-based child to 
instructional staff ratio. 
(E) Offers a full-day program. 
(F) Provides developmentally appropriate, 
evidence-based curricula and learning environ-
ments that are aligned with the State’s early 
learning and development standards described 
in section 115(1). 
(G) Offers instructional staff salaries com-
parable to kindergarten through grade 12 
teaching staff. 
(H) Provides for ongoing monitoring and 
program evaluation to ensure continuous im-
provement. 
(I) Offers accessible comprehensive services 
for children that include, at a minimum— 
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(i) screenings for vision, dental, health 
(including mental health), and development 
and referrals, and assistance obtaining 
services, when appropriate; 
(ii) family engagement opportunities 
that take into account home language, 
such as parent conferences (including par-
ent input about their child’s development) 
and support services, such as parent edu-
cation; 
(iii) nutrition services, including nutri-
tious meals and snack options aligned with 
requirements set by the most recent Child 
and Adult Care Food Program guidelines 
promulgated by the Department of Agri-
culture as well as regular, age-appropriate, 
nutrition education for children and their 
families; 
(iv) programs coordinated with local 
educational agencies and entities providing 
programs authorized under section 619 
and part C of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1419 and 
1431 et seq.); 
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(v) physical activity programs aligned 
with evidence-based guidelines, such as 
those recommended by the Institute of 
Medicine, and which take into account and 
accommodate children with disabilities; 
(vi) additional support services, as ap-
propriate, based on the findings of the 
needs analysis as described in section 120; 
and 
(vii) on-site coordination, to the max-
imum extent feasible. 
(J) Provides high-quality professional de-
velopment for all staff, including regular in- 
classroom observation for teachers and teacher 
assistants by individuals trained in such obser-
vation. 
(K) Meets the education performance 
standards in effect under section 641A(a)(1)(B) 
of 
the 
Head 
Start 
Act 
(42 
U.S.C. 
9836a(a)(1)(B)). 
(L) Maintains evidence-based health and 
safety standards. 
(10) GOVERNOR.—The term ‘‘Governor’’ means 
the chief executive officer of a State. 
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(11) HOMELESS CHILD.—The term ‘‘homeless 
child’’ means a child or youth described in section 
725(2) of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11434a(2)). 
(12) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘‘institution of higher education’’ has the 
meaning given the term in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002). 
(13) INDIAN TRIBE; TRIBAL ORGANIZATION.— 
The terms ‘‘Indian tribe’’ and ‘‘tribal organization’’ 
have the meanings given the terms in 658P of the 
Child Care and Development Block Grant of 1990 
(42 U.S.C. 9858n). 
(14) LIMITED
ENGLISH
PROFICIENT.—The 
term ‘‘limited English proficient’’ has the meaning 
given the term in section 637 of the Head Start Act 
(42 U.S.C. 9832). 
(15) LOCAL
EDUCATIONAL
AGENCY; STATE 
EDUCATIONAL
AGENCY; 
EDUCATIONAL
SERVICE 
AGENCY.—The terms ‘‘local educational agency’’, 
‘‘State educational agency’’, and ‘‘educational service 
agency’’ have the meanings given the terms in sec-
tion 9101 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7801). 
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(16) MIGRATORY CHILD.—The term ‘‘migratory 
child’’ has the meaning given the term in section 
1309 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6399). 
(17) OUTLYING
AREA.—The term ‘‘outlying 
area’’ means each of the United States Virgin Is-
lands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and the Republic 
of Palau. 
(18) POVERTY LINE.—The term ‘‘poverty line’’ 
means the official poverty line (as defined by the Of-
fice of Management and Budget)— 
(A) adjusted to reflect the percentage 
change in the Consumer Price Index for All 
Urban Consumers published by the Bureau of 
Labor Statistics of the Department of Labor 
for the most recent 12-month period or other 
interval for which the data are available; and 
(B) applicable to a family of the size in-
volved. 
(19) SECONDARY
SCHOOL.—The term ‘‘sec-
ondary school’’ has the meaning given the term in 
section 9101 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7801). 
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(20) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Education. 
(21) STATE.—Except as otherwise provided in 
this subtitle, the term ‘‘State’’ means each of the 50 
States, the District of Columbia, the Commonwealth 
of Puerto Rico, and each of the outlying areas. 
(22) STATE
ADVISORY
COUNCIL
ON
EARLY 
CHILDHOOD
EDUCATION
AND
CARE.—The term 
‘‘State Advisory Council on Early Childhood Edu-
cation and Care’’ means the State Advisory Council 
on Early Childhood Education and Care established 
under section 642B(b) of the Head Start Act (42 
U.S.C. 9837b(b)). 
SEC. 113. PROGRAM AUTHORIZATION. 
From amounts made available to carry out this sub-
title, the Secretary, in consultation with the Secretary of 
Health and Human Services, shall award grants to States 
to implement high-quality prekindergarten programs, con-
sistent with the purposes of this subtitle described in sec-
tion 111. For each fiscal year, the funds provided under 
a grant by a State shall equal the allotment determined 
for the State under section 114. 
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SEC. 114. ALLOTMENTS AND RESERVATIONS OF FUNDS. 
(a) RESERVATION.—From the amount made avail-
able each fiscal year to carry out this subtitle, the Sec-
retary shall— 
(1) reserve not less than 1 percent and not 
more than 2 percent for payments to Indian tribes 
and tribal organizations; 
(2) reserve 1⁄2 of 1 percent for the outlying 
areas to be distributed among the outlying areas on 
the basis of their relative need, as determined by the 
Secretary in accordance with the purposes of this 
subtitle; 
(3) reserve 1⁄2 of 1 percent for eligible local en-
tities that serve children in families who are engaged 
in migrant or seasonal agricultural labor; and 
(4) reserve not more than 1 percent or 
$30,000,000, whichever amount is less, for national 
activities, including administration, technical assist-
ance, and evaluation. 
(b) ALLOTMENTS.— 
(1) IN
GENERAL.—From the amount made 
available each fiscal year to carry out this subtitle 
and not reserved under subsection (a), the Secretary 
shall make allotments to States in accordance with 
paragraph (2) that have submitted an approved ap-
plication. 
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(2) ALLOTMENT AMOUNT.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall allot the amount 
made available under paragraph (1) for a fiscal 
year among the States in proportion to the 
number of children who are age 4 who reside 
within the State and are from families with in-
comes at or below 200 percent of the poverty 
line for the most recent year for which satisfac-
tory data are available, compared to the num-
ber of such children who reside in all such 
States for that fiscal year. 
(B) MINIMUM ALLOTMENT AMOUNT.—No 
State receiving an allotment under subpara-
graph (A) may receive less than 1⁄2 of 1 percent 
of the total amount allotted under such sub-
paragraph. 
(3) REALLOTMENT AND CARRY OVER.— 
(A) IN GENERAL.—If one or more States 
do not receive an allotment under this sub-
section for any fiscal year, the Secretary may 
use the amount of the allotment for that State 
or States, in such amounts as the Secretary de-
termines appropriate, for either or both of the 
following: 
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(i) To increase the allotments of 
States with approved applications for the 
fiscal year, consistent with subparagraph 
(B). 
(ii) To carry over the funds to the 
next fiscal year. 
(B) REALLOTMENT.—In increasing allot-
ments under subparagraph (A)(i), the Secretary 
shall allot to each State with an approved appli-
cation an amount that bears the same relation-
ship to the total amount to be allotted under 
subparagraph (A)(i), as the amount the State 
received under paragraph (2) for that fiscal 
year bears to the amount that all States re-
ceived under paragraph (2) for that fiscal year. 
(4) STATE.—For purposes of this subsection, 
the term ‘‘State’’ means each of the 50 States, the 
District of Columbia, and the Commonwealth of 
Puerto Rico. 
(c) FLEXIBILITY.—The Secretary may make minimal 
adjustments to allotments under this subsection, which 
shall neither lead to a significant increase or decrease in 
a State’s allotment determined under subsection (b), based 
on a set of factors, such as the level of program participa-
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tion and the estimated cost of the activities specified in 
the State plan under section 116(a)(2). 
SEC. 115. STATE ELIGIBILITY CRITERIA. 
A State is eligible to receive a grant under this sub-
title if the State demonstrates to the Secretary that the 
State— 
(1) has established or will establish early learn-
ing and development standards that describe what 
children from birth to kindergarten entry should 
know and be able to do, are universally designed and 
developmentally, culturally, and linguistically appro-
priate, are aligned with the State’s challenging aca-
demic content standards and challenging student 
academic achievement standards, as adopted under 
section 1111(b)(1) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311(b)(1)), and 
cover the essential domains of school readiness, 
which address— 
(A) physical well-being and motor develop-
ment; 
(B) social and emotional development; 
(C) approaches to learning, including cre-
ative arts expression; 
(D) developmentally appropriate oral and 
written language and literacy development; and 
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(E) cognition and general knowledge, in-
cluding early mathematics and early scientific 
development; 
(2) has the ability or will develop the ability to 
link prekindergarten data with its elementary school 
and secondary school data for the purpose of col-
lecting longitudinal information for all children par-
ticipating in the State’s high-quality prekindergarten 
program and any other federally funded early child-
hood program that will remain with the child 
through the child’s public education through grade 
12; 
(3) offers State-funded kindergarten for chil-
dren who are eligible children for that service in the 
State; and 
(4) has established a State Advisory Council on 
Early Childhood Education and Care. 
SEC. 116. STATE APPLICATIONS. 
(a) IN GENERAL.—To receive a grant under this sub-
title, the Governor of a State, in consultation with the In-
dian tribes and tribal organizations in the State, if any, 
shall submit an application to the Secretary at such time, 
in such manner, and containing such information as the 
Secretary may reasonably require. At a minimum, each 
such application shall include— 
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(1) an assurance that the State— 
(A) will coordinate with and continue to 
participate in the programs authorized under 
section 619 and part C of the Individuals with 
Disabilities Education Act (20 U.S.C. 1419 and 
1431 et seq.), the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.), and the maternal, infant, and early child-
hood home visiting programs funded under sec-
tion 511 of the Social Security Act (42 U.S.C. 
711) for the duration of the grant; 
(B) will designate a State-level entity (such 
as an agency or joint interagency office), se-
lected by the Governor, for the administration 
of the grant, which shall coordinate and consult 
with the State educational agency if the entity 
is not the State educational agency; and 
(C) will establish, or certify the existence 
of, program standards for all State prekinder-
garten programs consistent with the definition 
of a high-quality prekindergarten program 
under section 112; 
(2) a description of the State’s plan to— 
(A) use funds received under this subtitle 
and the State’s matching funds to provide high- 
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quality prekindergarten programs, in accord-
ance with section 117(d), with open enrollment 
for all children in the State who— 
(i) are described in section 112(9)(A); 
and 
(ii) are from families with incomes at 
or below 200 percent of the poverty line; 
(B) develop or enhance a system for moni-
toring eligible local entities that are receiving 
funds under this subtitle for compliance with 
quality standards developed by the State and to 
provide program improvement support, which 
may be accomplished through the use of a 
State-developed system for quality rating and 
improvement; 
(C) if applicable, expand participation in 
the State’s high-quality prekindergarten pro-
grams to children from families with incomes 
above 200 percent of the poverty line; 
(D) carry out the State’s comprehensive 
early learning assessment system, or how the 
State plans to develop such a system, ensuring 
that any assessments are culturally, develop-
mentally, and age-appropriate and consistent 
with the recommendations from the study on 
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Developmental Outcomes and Assessments for 
Young Children by the National Academy of 
Sciences, consistent with section 649(j) of the 
Head Start Act (42 U.S.C. 9844); 
(E) develop, implement, and make publicly 
available the performance measures and targets 
described in section 119; 
(F) increase the number of teachers with 
bachelor’s degrees in early childhood education, 
or with bachelor’s degrees in another closely re-
lated field and specialized training in early 
childhood education, including how institutions 
of higher education will support increasing the 
number of teachers with such degrees and 
training, including through the use of assess-
ments of prior learning, knowledge, and skills 
to facilitate and expedite attainment of such de-
grees; 
(G) coordinate and integrate the activities 
funded under this subtitle with Federal, State, 
and local services and programs that support 
early childhood education and care, including 
programs supported under this subtitle, the El-
ementary and Secondary Education Act of 1965 
(20 U.S.C. 6301 et seq.), the Individuals with 
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Disabilities Education Act (20 U.S.C. 1400 et 
seq.), the Head Start Act (42 U.S.C. 9831 et 
seq.), the Community Services Block Grant Act 
(42 U.S.C. 9901 et seq.), the Child Care and 
Development Block Grant Act of 1990 (42 
U.S.C. 9858 et seq.), the temporary assistance 
for needy families program under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et 
seq.), the State incentive grant program under 
section 14006 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111–5), 
federally funded early literacy programs, the 
maternal, infant, and early childhood home vis-
iting programs funded under section 511 of the 
Social Security Act (42 U.S.C. 711), health im-
provements to child care funded under title 
XIX of the Social Security Act (42 U.S.C. 1396 
et seq.), the program under subtitle B of title 
VII of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11431 et seq.), the Invest-
ing In Innovation program under section 14007 
of the American Recovery and Reinvestment 
Act of 2009 (Public Law 111–5), programs au-
thorized under part E of title IV of the Social 
Security Act (42 U.S.C. 670 et seq.), the Fos-
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tering Connections to Success and Increasing 
Adoptions Act of 2008 (Public Law 110–351), 
and any other Federal, State, or local early 
childhood education programs used in the 
State; 
(H) award subgrants to eligible local enti-
ties, and in awarding such subgrants, facilitate 
a delivery system of high-quality prekinder-
garten programs that includes diverse pro-
viders, such as providers in community-based, 
public school, and private settings, and consider 
the system’s impact on options for families; 
(I) in the case of a State that does not 
have a funding mechanism for subgranting 
funds to implement high-quality prekinder-
garten, use objective criteria in awarding sub-
grants to eligible local entities that will imple-
ment high-quality prekindergarten programs, 
including actions the State will take to ensure 
that eligible local entities will coordinate with 
local educational agencies or other early learn-
ing providers, as appropriate, to carry out ac-
tivities to provide children served under this 
subtitle with a successful transition from pre-
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school into kindergarten, which activities shall 
include— 
(i) aligning curricular objectives and 
instruction; 
(ii) providing staff professional devel-
opment, including opportunities for joint- 
professional development on early learning 
and kindergarten through grade 3 stand-
ards, assessments, and curricula; 
(iii) coordinating family engagement 
and support services; and 
(iv) encouraging the shared use of fa-
cilities and transportation, as appropriate; 
(J) use the State early learning and devel-
opment standards described in section 115(1) 
to address the needs of dual language learners, 
including by incorporating benchmarks related 
to English language development; 
(K) identify barriers, and propose solutions 
to overcome such barriers, which may include 
seeking assistance under section 126, in the 
State to effectively use and integrate Federal, 
State, and local public funds and private funds 
for early childhood education that are available 
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to the State on the date on which the applica-
tion is submitted; 
(L) support articulation agreements (as 
defined in section 486A of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1093a)) between 
public 2-year and public 4-year institutions of 
higher education in the State for early child-
hood teacher preparation programs and related 
fields; 
(M) ensure that the higher education pro-
grams in the State have the capacity to prepare 
a workforce to provide high-quality prekinder-
garten programs; 
(N) support workforce development, in-
cluding State and local policies that support 
prekindergarten instructional staff’s ability to 
earn a degree, certification, or other specializa-
tions or qualifications, including policies on 
leave, substitutes, and child care services, in-
cluding non-traditional hour child care; 
(O) hold eligible local entities accountable 
for use of funds; 
(P) ensure that the State’s early learning 
and development standards are integrated into 
the instructional and programmatic practices of 
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high-quality prekindergarten programs and re-
lated programs and services, such as those pro-
vided to children under section 619 and part C 
of the Individuals with Disabilities Education 
Act (20 U.S.C. 1419 and 1431 et seq.); 
(Q) increase the number of children in the 
State who are enrolled in high-quality kinder-
garten programs and carry out a strategy to 
implement such a plan; 
(R) coordinate the State’s activities sup-
ported by grants under this subtitle with activi-
ties in State plans required under the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 6301 et seq.), the Individuals with Dis-
abilities Education Act (20 U.S.C. 1400 et 
seq.), the Head Start Act (42 U.S.C. 9831 et 
seq.), the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858 et seq.), 
and the Adult Education and Family Literacy 
Act (20 U.S.C. 9201 et seq.); 
(S) encourage eligible local entities to co-
ordinate with community-based learning re-
sources, such as libraries, arts and arts edu-
cation programs, appropriate media programs, 
family literacy programs, public parks and 
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recreation programs, museums, nutrition edu-
cation programs, and programs supported by 
the Corporation for National and Community 
Service; 
(T) work with eligible local entities, in con-
sultation with elementary school principals, to 
ensure that high-quality prekindergarten pro-
grams have sufficient facilities to meet the 
needs of children eligible for prekindergarten; 
(U) support local early childhood coordi-
nating entities, such as local early childhood 
councils, if applicable, and help such entities to 
coordinate early childhood education programs 
with high-quality prekindergarten programs to 
ensure effective and efficient delivery of early 
childhood education program services; 
(V) ensure that the provision of high-qual-
ity prekindergarten programs will not lead to a 
diminution of services for infants and toddlers 
or disrupt the care of infants and toddlers in 
the geographic area served by the eligible local 
entity, which may include demonstrating that 
the State will direct funds to provide high-qual-
ity early childhood education and care to in-
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fants and toddlers in accordance with section 
117(d); and 
(W) ensure that all high-quality prekinder-
garten programs the State supports under this 
Act will conduct criminal history background 
checks that meet the requirements of subsection 
(b) on employees and applicants for employ-
ment with direct access to children; and 
(3) an inventory of the State’s higher education 
programs that prepare individuals for work in a 
high-quality prekindergarten program, including— 
(A) certification programs; 
(B) associate degree programs; 
(C) baccalaureate degree programs; 
(D) master’s degree programs; and 
(E) other programs that lead to a speciali-
zation in early childhood education, or a related 
field. 
(b) CRIMINAL HISTORY BACKGROUND CHECKS.— 
(1) IN GENERAL.—The criminal history back-
ground checks required under subsection (a)(2)(Z) 
shall include— 
(A) a search of the State criminal registry 
or repository in the State in which the employee 
resides and previously resided; 
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(B) a search of the State-based child abuse 
and neglect registries and databases in the 
State in which the employee resides and pre-
viously resided; 
(C) a Federal Bureau of Investigation fin-
gerprint check using the Integrated Automated 
Fingerprint Identification System; and 
(D) a search of the National Sex Offender 
Registry established under section 119 of the 
Adam Walsh Child Protection and Safety Act of 
2006 (42 U.S.C. 16919). 
(2) PROHIBITION OF EMPLOYMENT.—To be eli-
gible to receive a grant under this subtitle, a State 
shall prohibit an individual with direct access to chil-
dren from employment with a program supported 
with grant funds under this subtitle if the individual 
has been convicted of a violent felony or any violent 
or sexual crime against a minor, as defined by the 
State. 
(3) UPDATED CHECKS.—To be eligible to re-
ceive a grant under this subtitle, each criminal his-
tory background check conducted on an employee as 
required under subsection (a)(2)(Z) shall be periodi-
cally repeated or updated in accordance with State 
law. 
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(4) APPEAL PROCESS.—To be eligible to receive 
a grant under this subtitle, a State shall provide an 
individual with a timely process by which to— 
(A) appeal the results of a criminal history 
background check conducted under this section 
to challenge the accuracy or completeness of the 
information produced by such background 
check; and 
(B) seek appropriate relief for any final 
employment decision based on materially inac-
curate or incomplete information produced by 
such background check. 
(c) DEVELOPMENT OF APPLICATION.—In developing 
an application for a grant under this subtitle, a State shall 
consult with the State Advisory Council on Early Child-
hood Education and Care and incorporate such Council’s 
recommendations, where applicable. 
(d) CONSTRUCTION.—Nothing in this section shall be 
construed to alter or otherwise affect the rights, remedies, 
and procedures afforded school employees, local edu-
cational agency employees, and the employees of early 
childhood education programs under Federal, State, or 
local laws (including applicable regulations or court or-
ders) or under the terms of collective bargaining agree-
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ments, memoranda of understanding, or other agreements 
between such employees and their employers. 
SEC. 117. STATE USE OF FUNDS. 
(a) RESERVATION FOR QUALITY IMPROVEMENT AC-
TIVITIES.— 
(1) IN
GENERAL.—A State that receives a 
grant under this subtitle may reserve for, not more 
than the first 4 years such State receives such a 
grant, not more than 20 percent of the grant funds 
for quality improvement activities if such activities 
support the elements of high-quality prekindergarten 
programs. Such quality improvement activities may 
include supporting teachers and principals in a 
State’s high-quality prekindergarten program, li-
censed or regulated child care, or Head Start pro-
grams to enable such teachers to earn a bacca-
laureate degree in early childhood education, or 
closely related field, through activities which may in-
clude— 
(A) expanding or establishing scholarships, 
counseling, and compensation initiatives to 
cover the cost of tuition, fees, materials, trans-
portation, and release time for such teachers; 
and 
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(B) providing ongoing professional develop-
ment opportunities, including regular in-class-
room observation by individuals trained in such 
observation, for such teachers, principals, and 
teachers assistants to enable such teachers, 
principals, and teachers assistants to carry out 
the elements of high-quality prekindergarten 
programs, which may include activities that ad-
dress— 
(i) promoting children’s development 
across the essential domains of early learn-
ing and development; 
(ii) developmentally appropriate teach-
er-child interaction; 
(iii) effective family engagement; 
(iv) providing culturally competent in-
struction; 
(v) working with a diversity of chil-
dren and families, including children with 
special needs and dual language learners; 
(vi) childhood nutrition and physical 
education programs; and 
(vii) supporting the implementation of 
evidence-based curricula. 
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(2) NOT SUBJECT TO MATCHING.—The amount 
reserved under paragraph (1) shall not be subject to 
the matching requirements under section 120. 
(3) COORDINATION.—A State that reserves an 
amount under paragraph (1) shall coordinate the 
use of such amount with activities funded under sec-
tion 658G of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858e) and the Head 
Start Act (42 U.S.C. 9831 et seq.). 
(4) CONSTRUCTION.—A State may not use 
funds reserved under this subsection to meet the re-
quirement described in section 112(9)(G). 
(b) SUBGRANTS
FOR HIGH-QUALITY PREKINDER-
GARTEN PROGRAMS.—A State that receives a grant under 
this subtitle shall award subgrants of sufficient size to eli-
gible local entities to enable such eligible local entities to 
implement high-quality prekindergarten programs for chil-
dren who— 
(1) are described in section 112(9)(A); 
(2) reside within the State; and 
(3) are from families with incomes at or below 
200 percent of the poverty line. 
(c) ADMINISTRATION.—A State that receives a grant 
under this subtitle may reserve not more than 1 percent 
of the grant funds for administration of the grant, and 
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may use part of that reservation for the maintenance of 
the State Advisory Council on Early Childhood Education 
and Care. 
(d) EARLY CHILDHOOD EDUCATION AND CARE PRO-
GRAMS FOR INFANTS AND TODDLERS.— 
(1) USE
OF
ALLOTMENT
FOR
INFANTS
AND 
TODDLERS.—An eligible State may apply to use, and 
the appropriate Secretary may grant permission for 
the State to use, not more than 15 percent of the 
funds made available through a grant received under 
this subtitle to award subgrants to early childhood 
education programs to provide, consistent with the 
State’s early learning and development guidelines for 
infants and toddlers, high-quality early childhood 
education and care to infants and toddlers who re-
side within the State and are from families with in-
comes at or below 200 percent of the poverty line. 
(2) APPLICATION.—To be eligible to use the 
grant funds as described in paragraph (1), the State 
shall submit an application to the appropriate Sec-
retary at such time, in such manner, and containing 
such information as the Secretary may require. Such 
application shall, at a minimum, include a descrip-
tion of how the State will— 
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(A) designate a lead agency which shall ad-
minister such funds; 
(B) ensure that such lead agency, in co-
ordination with the State’s Advisory Council on 
Early Childhood Education and Care, will col-
laborate with other agencies in administering 
programs supported under this subsection for 
infants and toddlers in order to obtain input 
about the appropriate use of such funds and en-
sure coordination with programs for infants and 
toddlers funded under the Child Care and De-
velopment Block Grant Act of 1990 (42 U.S.C. 
9858 et seq.), the Head Start Act (42 U.S.C. 
9831 et seq.) (including any Early Learning 
Quality Partnerships established in the State 
under section 645B of the Head Start Act, as 
added by section 202), the Race to the Top and 
Early Learning Challenge program under sec-
tion 14006 of Public Law 111–5 (123 Stat. 
283), the maternal, infant, and early childhood 
home visiting programs funded under section 
511 of the Social Security Act (42 U.S.C. 711), 
and part C of the Individuals with Disabilities 
Education Act (20 U.S.C. 1431 et seq.); 
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(C) ensure that infants and toddlers who 
benefit from amounts made available under this 
subsection will transition to and have the oppor-
tunity to participate in a high-quality pre-
kindergarten program supported under this 
subtitle; 
(D) in awarding subgrants, give preference 
to early childhood education programs that 
have a plan to increase services to children with 
special needs, including children with develop-
mental delays or disabilities, children who are 
dual language learners, homeless children, chil-
dren who are in foster care, children of migrant 
families, children eligible for free or reduced- 
price lunch under the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1751 et 
seq.), or children in the child welfare system; 
and 
(E) give priority to activities carried out 
under this subsection that will increase access 
to high-quality early childhood education pro-
grams for infants and toddlers in local areas 
with significant concentrations of low-income 
families that do not currently benefit from such 
programs. 
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(3) ELIGIBLE PROVIDERS.—A State may use 
the grant funds as described in paragraph (1) to 
serve infants and toddlers only by working with 
early childhood education program providers that— 
(A) offer full-day, full-year care, or other-
wise meet the needs of working families; and 
(B) meet high-quality standards, such as— 
(i) Early Head Start program per-
formance standards under the Head Start 
Act (42 U.S.C. 9831 et seq.); or 
(ii) high quality, demonstrated, valid, 
and reliable program standards that have 
been established through a national entity 
that accredits early childhood education 
programs. 
(4) FEDERAL ADMINISTRATION.— 
(A) IN GENERAL.—The Secretary of Edu-
cation shall bear responsibility for obligating 
and disbursing funds to support activities under 
this subsection and ensuring compliance with 
applicable laws and administrative require-
ments, subject to paragraph (3). 
(B) INTERAGENCY AGREEMENT.—The Sec-
retary of Education and the Secretary of 
Health and Human Services shall jointly ad-
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minister activities supported under this sub-
section on such terms as such Secretaries shall 
set forth in an interagency agreement. The Sec-
retary of Health and Human Services shall be 
responsible for any final approval of a State’s 
application under this subsection that addresses 
the use of funds designated for services to in-
fants and toddlers. 
(C) APPROPRIATE
SECRETARY.—In this 
subsection, the term ‘‘appropriate Secretary’’ 
used with respect to a function, means the Sec-
retary designated for that function under the 
interagency agreement. 
SEC. 118. ADDITIONAL PREKINDERGARTEN SERVICES. 
(a) PREKINDERGARTEN FOR 3-YEAR-OLDS.—Each 
State that certifies to the Secretary that the State pro-
vides universally available, voluntary, high-quality pre-
kindergarten programs for 4-year-old children who reside 
within the State and are from families with incomes at 
or below 200 percent of the poverty line may use the 
State’s allocation under section 114(b) to provide high- 
quality prekindergarten programs for 3-year-old children 
who reside within the State and are from families with 
incomes at or below 200 percent of the poverty line. 
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(b) SUBGRANTS.—In each State that has a city, 
county, or local educational agency that provides univer-
sally available high-quality prekindergarten programs for 
4-year-old children who reside within the State and are 
from families with incomes at or below 200 percent of the 
poverty line the State may use amounts from the State’s 
allocation under section 114(b) to award subgrants to eli-
gible local entities to enable such eligible local entities to 
provide high-quality prekindergarten programs for 3-year- 
old children who are from families with incomes at or 
below 200 percent of the poverty line and who reside in 
such city, county or local educational agency. 
SEC. 119. PERFORMANCE MEASURES AND TARGETS. 
(a) IN GENERAL.—A State that receives a grant 
under this subtitle shall develop, implement, and make 
publicly available the performance measures and targets 
for the activities carried out with grant funds. Such meas-
ures shall, at a minimum, track the State’s progress in— 
(1) increasing school readiness across all do-
mains for all categories of children, as described in 
section 123(b)(7), including children with disabilities 
and dual language learners; 
(2) narrowing school readiness gaps between 
minority and nonminority children, and low-income 
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children and more advantaged children, in prepara-
tion for kindergarten entry; 
(3) decreasing placement for children in ele-
mentary school in special education programs and 
services as described in part B of the Individuals 
with Disabilities Education Act (20 U.S.C. 1411 et 
seq.); 
(4) increasing the number of programs meeting 
the criteria for high-quality prekindergarten pro-
grams, as defined by the State and in accordance 
with section 112; 
(5) decreasing the need for grade-to-grade re-
tention in elementary school; 
(6) if applicable, ensuring that high-quality pre-
kindergarten programs do not experience instances 
of chronic absence among the children who partici-
pate in such programs; 
(7) increasing the number and percentage of 
low-income children in high-quality early childhood 
education programs that receive financial support 
through funds provided under this subtitle; and 
(8) providing high-quality nutrition services, 
nutrition education, physical activity, and obesity 
prevention programs. 
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(b) PROHIBITION OF MISDIAGNOSIS PRACTICES.—A 
State shall not, in order to meet the performance meas-
ures and targets described in subsection (a), engage in 
practices or policies that will lead to the misdiagnosis or 
under-diagnosis of disabilities or developmental delays 
among children who are served through programs sup-
ported under this subtitle. 
SEC. 120. MATCHING REQUIREMENTS. 
(a) MATCHING FUNDS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), a State that receives a grant under this 
subtitle shall provide matching funds from non-Fed-
eral sources, as described in subsection (c), in an 
amount equal to— 
(A) 10 percent of the Federal funds pro-
vided under the grant in the first year of grant 
administration; 
(B) 10 percent of the Federal funds pro-
vided under the grant in the second year of 
grant administration; 
(C) 20 percent of the Federal funds pro-
vided under the grant in the third year of grant 
administration; 
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(D) 30 percent of the Federal funds pro-
vided under the grant in the fourth year of 
grant administration; 
(E) 40 percent of the Federal funds pro-
vided under the grant in the fifth year of grant 
administration; 
(F) 50 percent of the Federal funds pro-
vided under the grant in the sixth year of grant 
administration; 
(G) 75 percent of the Federal funds pro-
vided under the grant in the seventh year of 
grant administration; and 
(H) 100 percent of the Federal funds pro-
vided under the grant in the eighth and fol-
lowing years of grant administration. 
(2) REDUCED
MATCH
RATE.—A State that 
meets the requirements under subsection (b) may 
provide matching funds from non-Federal sources at 
a reduced rate. The full reduced matching funds 
rate shall be in an amount equal to— 
(A) 5 percent of the Federal funds pro-
vided under the grant in the first year of grant 
administration; 
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(B) 5 percent of the Federal funds pro-
vided under the grant in the second year of 
grant administration; 
(C) 10 percent of the Federal funds pro-
vided under the grant in the third year of grant 
administration; 
(D) 20 percent of the Federal funds pro-
vided under the grant in the fourth year of 
grant administration; 
(E) 30 percent of the Federal funds pro-
vided under the grant in the fifth year of grant 
administration; 
(F) 40 percent of the Federal funds pro-
vided under the grant in the sixth year of grant 
administration; 
(G) 50 percent of the Federal funds pro-
vided under the grant in the seventh year of 
grant administration; 
(H) 75 percent of the Federal funds pro-
vided under the grant in the eighth year of 
grant administration; and 
(I) 100 percent of the Federal funds pro-
vided under the grant in the ninth and fol-
lowing years of the grant administration. 
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(b) REDUCED MATCH RATE ELIGIBILITY.—A State 
that receives a grant under this subtitle may provide 
matching funds from non-Federal sources at the full re-
duced rate under subsection (a)(2) if the State— 
(1)(A) offers enrollment in high-quality pre-
kindergarten programs to not less than half of chil-
dren in the State who are— 
(i) age 4 on the eligibility determination 
date; and 
(ii) from families with incomes at or below 
200 percent of the poverty line; and 
(B) has a plan for continuing to expand access 
to high-quality prekindergarten programs for such 
children in the State; and 
(2) has a plan to expand access to high-quality 
prekindergarten programs to children from moderate 
income families whose income exceeds 200 percent of 
the poverty line. 
(c) NON-FEDERAL RESOURCES.— 
(1) IN CASH.—A State shall provide the match-
ing funds under this section in cash. 
(2) FUNDS TO BE CONSIDERED AS MATCHING 
FUNDS.—A State may include, as part of the State’s 
matching funds under this section, not more than 10 
percent of the amount of State funds designated for 
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State prekindergarten programs or to supplement 
Head Start programs under the Head Start Act (42 
U.S.C. 9831 et seq.) as of the date of enactment of 
this Act, but may not include any funds that are at-
tributed as matching funds, as part of a non-Federal 
share, or as a maintenance of effort requirement, for 
any other Federal program. 
(d) MAINTENANCE OF EFFORT.— 
(1) IN GENERAL.—If a State reduces its com-
bined fiscal effort per student or the aggregate ex-
penditures within the State to support early child-
hood education programs for any fiscal year that a 
State receives a grant authorized under this subtitle 
relative to the previous fiscal year, the Secretary 
shall reduce support for such State under this sub-
title by the same amount as the decline in State and 
local effort for such fiscal year. 
(2) WAIVER.—The Secretary may waive the re-
quirements of paragraph (1) if— 
(A) the Secretary determines that a waiver 
would be appropriate due to a precipitous de-
cline in the financial resources of a State as a 
result of unforeseen economic hardship or a 
natural disaster that has necessitated across- 
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the-board reductions in State services, including 
early childhood education programs; or 
(B) due to the circumstances of a State re-
quiring reductions in specific programs, includ-
ing early childhood education, if the State pre-
sents to the Secretary a justification and dem-
onstration why other programs could not be re-
duced and how early childhood programs in the 
State will not be disproportionately harmed by 
such State action. 
(e) SUPPLEMENT NOT SUPPLANT.—Grant funds re-
ceived under this title shall be used to supplement and 
not supplant other Federal, State, and local public funds 
expended on public prekindergarten programs in the 
State. 
SEC. 121. ELIGIBLE LOCAL ENTITY APPLICATIONS. 
(a) IN GENERAL.—An eligible local entity desiring to 
receive a subgrant under section 117(b) shall submit an 
application to the State, at such time, in such manner, 
and containing such information as the State may reason-
ably require. 
(b) CONTENTS.—Each application submitted under 
subsection (a) shall include the following: 
(1) PARENT AND FAMILY ENGAGEMENT.—A de-
scription of how the eligible local entity plans to en-
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gage the parents and families of the children such 
entity serves and ensure that parents and families of 
eligible children are aware of the services provided 
by the eligible local entity, which shall include a plan 
to— 
(A) carry out meaningful parent and fam-
ily engagement, through the implementation 
and replication of evidence-based or promising 
practices and strategies, which shall be coordi-
nated with parent and family engagement strat-
egies supported under the Individuals with Dis-
abilities Education Act (20 U.S.C. 1400 et seq.) 
and part A of title I and title V of the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 6311 et seq. and 7201 et seq.), if appli-
cable, to— 
(i) provide parents and family mem-
bers with the skills and opportunities nec-
essary to become full partners in their chil-
dren’s education, particularly the families 
of dual language learners and children 
with disabilities; 
(ii) improve child development; and 
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(iii) strengthen relationships among 
prekindergarten staff and parents and 
family members; and 
(B) perform community outreach to en-
courage families with eligible children to partici-
pate in the eligible local entity’s high-quality 
prekindergarten program, including— 
(i) homeless children; 
(ii) dual language learners; 
(iii) children in foster care; 
(iv) children with disabilities; and 
(v) migrant children. 
(2) COORDINATION
AND
ALIGNMENT.—A de-
scription of how the eligible local entity will— 
(A) coordinate, if applicable, the eligible 
local entity’s activities with— 
(i) Head Start agencies (consistent 
with section 642(e)(5) of the Head Start 
Act (42 U.S.C. 9837(e)(5))), if the local 
entity is not a Head Start agency; 
(ii) local educational agencies, if the 
eligible local entity is not a local edu-
cational agency; 
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(iii) providers of services under part C 
of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1431 et seq.); 
(iv) programs carried out under sec-
tion 619 of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1419); and 
(v) if feasible, other entities carrying 
out early childhood education programs 
and services within the area served by the 
local educational agency; 
(B) if applicable, develop and implement a 
systematic procedure for transferring, with pa-
rental consent, early childhood education pro-
gram records for each participating child to the 
school in which such child will enroll in kinder-
garten; 
(C) develop a plan to promote continuity of 
developmentally appropriate instructional pro-
grams and shared expectations with local ele-
mentary schools for children’s learning and de-
velopment as children transition to kinder-
garten; 
(D) organize, if feasible, and participate in 
joint training, when available, including transi-
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tion-related training for school staff and early 
childhood education program staff; 
(E) establish comprehensive transition poli-
cies and procedures, with applicable elementary 
schools and principals, for the children served 
by the eligible local entity that support the 
school readiness of children transitioning to kin-
dergarten; 
(F) conduct outreach to parents, families, 
and elementary school teachers and principals 
to discuss the educational, developmental, and 
other needs of children entering kindergarten; 
(G) help parents, including parents of chil-
dren who are dual language learners, under-
stand and engage with the instructional and 
other services provided by the kindergarten in 
which such child will enroll after participation 
in a high-quality prekindergarten program; and 
(H) develop and implement a system to in-
crease program participation of underserved 
populations of eligible children, especially home-
less children, children eligible for a free or re-
duced-price lunch under the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et 
seq.), parents of children who are dual language 
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learners, and parents of children with disabil-
ities. 
(3) 
PROTECTIONS
FOR
SPECIAL
POPU-
LATIONS.—A description of how the eligible local en-
tity will meet the diverse needs of children in the 
community to be served, including children with dis-
abilities, children whose native language is not 
English, children with other special needs, children 
in the State foster care system, and homeless chil-
dren. Such description shall demonstrate, at a min-
imum, how the entity plans to— 
(A) ensure the eligible local entity’s high- 
quality prekindergarten program is accessible 
and appropriate for children with disabilities 
and dual language learners; 
(B) establish effective procedures for pro-
viding necessary early intervening services to 
children with disabilities prior to an eligibility 
determination by the State or local agency re-
sponsible for providing services under section 
619 or part C of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1419 and 1431 
et seq.); 
(C) establish effective procedures for time-
ly referral of children with disabilities to the 
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State or local agency described in subparagraph 
(B); 
(D) ensure that the eligible local entity’s 
high-quality prekindergarten program works 
with appropriate entities to address the elimi-
nation of barriers to immediate and continuous 
enrollment for homeless children; and 
(E) ensure access to and continuity of en-
rollment in high-quality prekindergarten pro-
grams for migratory children, if applicable, and 
homeless children, including through policies 
and procedures that require— 
(i) outreach to identify migratory chil-
dren and homeless children; 
(ii) immediate enrollment, including 
enrollment during the period of time when 
documents typically required for enroll-
ment, including health and immunization 
records, proof of eligibility, and other docu-
ments, are obtained; 
(iii) continuous enrollment and par-
ticipation in the same high-quality pre-
kindergarten program for a child, even if 
the child moves out of the program’s serv-
ice area, if that enrollment and participa-
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tion are in the child’s best interest, includ-
ing by providing transportation when nec-
essary; 
(iv) professional development for high- 
quality prekindergarten program staff re-
garding migratory children and homeless-
ness among families with young children; 
and 
(v) in serving homeless children, col-
laboration with local educational agency li-
aisons 
designated 
under 
section 
722(g)(1)(J)(ii) of the McKinney-Vento 
Homeless 
Assistance 
Act 
(42 
U.S.C. 
11432(g)(1)(J)(ii)), and local homeless 
service providers. 
(4) ACCESSIBLE COMPREHENSIVE SERVICES.— 
A description of how the eligible local entity plans to 
provide accessible comprehensive services, described 
in section 112(9)(I), to the children the eligible local 
entity serves. Such description shall provide informa-
tion on how the entity will— 
(A) conduct a data-driven community as-
sessment in coordination with members of the 
community, including parents and community 
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organizations, or use a recently conducted data- 
driven assessment, which— 
(i) may involve an external partner 
with expertise in conducting such needs 
analysis, to determine the most appro-
priate social or other support services to 
offer through the eligible local entity’s on- 
site comprehensive services to children who 
participate in high-quality prekindergarten 
programs; and 
(ii) shall consider the resources avail-
able at the school, local educational agen-
cy, and community levels to address the 
needs of the community and improve child 
outcomes; and 
(B) have a coordinated system to facilitate 
the screening, referral, and provision of services 
related to health, nutrition, mental health, dis-
ability, and family support for children served 
by the eligible local entity. 
(5) WORKFORCE.—A description of how the eli-
gible local entity plans to support the instructional 
staff of such entity’s high-quality prekindergarten 
program, which shall, at a minimum, include a plan 
to provide high-quality professional development, or 
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facilitate the provision of high-quality professional 
development through an external partner with exper-
tise and a demonstrated track record of success, 
based on scientifically valid research, that will im-
prove the knowledge and skills of high-quality pre-
kindergarten teachers and staff through activities, 
which may include— 
(A) acquiring content knowledge and learn-
ing teaching strategies needed to provide effec-
tive instruction that addresses the State’s early 
learning and development standards described 
under section 115(1); 
(B) enabling high-quality prekindergarten 
teachers and staff to pursue specialized training 
in early childhood development; 
(C) enabling high-quality prekindergarten 
teachers and staff to acquire the knowledge and 
skills to provide instruction and appropriate 
language and support services to increase the 
English language skills of dual language learn-
ers; 
(D) enabling high-quality prekindergarten 
teachers and staff to acquire the knowledge and 
skills to provide developmentally appropriate in-
struction for children with disabilities; 
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(E) promoting classroom management; 
(F) providing high-quality induction and 
support for incoming high-quality prekinder-
garten teachers and staff in high-quality pre-
kindergarten programs, including through the 
use of mentoring programs that have a dem-
onstrated track record of success; 
(G) promoting the acquisition of relevant 
credentials, including in ways that support ca-
reer advancement through career ladders; and 
(H) enabling high-quality prekindergarten 
teachers and staff to acquire the knowledge and 
skills to provide culturally competent instruc-
tion for children from diverse backgrounds. 
SEC. 122. REQUIRED SUBGRANT ACTIVITIES. 
(a) IN GENERAL.—An eligible local entity that re-
ceives a subgrant under section 117(b) shall use subgrant 
funds to implement the elements of a high-quality pre-
kindergarten program for the children described in section 
117(b). 
(b) COORDINATION.— 
(1) LOCAL
EDUCATIONAL
AGENCY
PARTNER-
SHIPS WITH LOCAL EARLY CHILDHOOD EDUCATION 
PROGRAMS.—A local educational agency that re-
ceives a subgrant under this subtitle shall provide an 
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assurance that the local educational agency will 
enter into strong partnerships with local early child-
hood education programs, including programs sup-
ported through the Head Start Act (42 U.S.C. 9831 
et seq.). 
(2) ELIGIBLE LOCAL ENTITIES THAT ARE NOT 
LOCAL EDUCATIONAL AGENCIES.—An eligible local 
entity that is not a local educational agency that re-
ceives a subgrant under this subtitle shall provide an 
assurance that such entity will enter into strong 
partnerships with local educational agencies. 
SEC. 123. REPORT AND EVALUATION. 
(a) IN GENERAL.—Each State that receives a grant 
under this subtitle shall prepare an annual report, in such 
manner and containing such information as the Secretary 
may reasonably require. 
(b) CONTENTS.—A report prepared under subsection 
(a) shall contain, at a minimum— 
(1) a description of the manner in which the 
State has used the funds made available through the 
grant and a report of the expenditures made with 
the funds; 
(2) a summary of the State’s progress toward 
providing access to high-quality prekindergarten pro-
grams for children eligible for such services, as de-
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termined by the State, from families with incomes at 
or below 200 percent of the poverty line, including 
the percentage of funds spent on children from fami-
lies with incomes— 
(A) at or below 100 percent of the poverty 
line; 
(B) at or below between 101 and 150 per-
cent of the poverty line; and 
(C) at or below between 151 and 200 per-
cent of the poverty line; 
(3) an evaluation of the State’s progress toward 
achieving the State’s performance targets, described 
in section 119; 
(4) data on the number of high-quality pre-
kindergarten program teachers and staff in the 
State (including teacher turnover rates and teacher 
compensation levels compared to teachers in elemen-
tary schools and secondary schools), according to the 
setting in which such teachers and staff work (which 
settings shall include, at a minimum, Head Start 
programs, public prekindergarten, and child care 
programs) who received training or education during 
the period of the grant and remained in the early 
childhood education program field; 
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(5) data on the kindergarten readiness of chil-
dren in the State; 
(6) a description of the State’s progress in over-
coming barriers to the effective use of Federal, 
State, and local public funds and private funds, for 
early childhood education; 
(7) the number and percentage of children in 
the State participating in high-quality prekinder-
garten programs, disaggregated by race, ethnicity, 
family income, child age, disability, whether the chil-
dren are homeless children, and whether the children 
are dual language learners; 
(8) data on the availability, affordability, and 
quality of infant and toddler care in the State; 
(9) the number of operational minutes per week 
and per year for each eligible local entity that re-
ceives a subgrant; 
(10) the local educational agency and ZIP code 
in which each eligible local entity that receives a 
subgrant operates; 
(11) information, for each of the local edu-
cational agencies described in paragraph (10), on 
the percentage of the costs of the public early child-
hood education programs that is funded from Fed-
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eral, from State, and from local sources, including 
the percentages from specific funding programs; 
(12) data on the number and percentage of 
children in the State participating in public kinder-
garten programs, disaggregated by race, family in-
come, child age, disability, whether the children are 
homeless children, and whether the children are dual 
language learners, with information on whether such 
programs are offered— 
(A) for a full-day; and 
(B) at no cost to families; and 
(13) data on the number of individuals in the 
State who are supported with scholarships, if appli-
cable, to meet the baccalaureate degree requirement 
for high-quality prekindergarten programs, as de-
fined in section 112. 
(c) SUBMISSION.—A State shall submit the annual 
report prepared under subsection (a), at the end of each 
fiscal year, to the Secretary, the Secretary of Health and 
Human Services, and the State Advisory Council on Early 
Childhood Education and Care. 
(d) COOPERATION.—An eligible local entity that re-
ceives a subgrant under this subtitle shall cooperate with 
all Federal and State efforts to evaluate the effectiveness 
of the program the entity implements with subgrant funds. 
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(e) NATIONAL REPORT.—The Secretary shall compile 
and summarize the annual State reports described under 
subsection (c) and shall prepare and submit an annual re-
port to Congress that includes a summary of such State 
reports. 
SEC. 124. PROHIBITION OF REQUIRED PARTICIPATION OR 
USE OF FUNDS FOR ASSESSMENTS. 
(a) PROHIBITION ON REQUIRED PARTICIPATION.—A 
State receiving a grant under this subtitle shall not re-
quire any child to participate in any Federal, State, local, 
or private early childhood education program, including a 
high-quality prekindergarten program. 
(b) PROHIBITION ON USE OF FUNDS FOR ASSESS-
MENT.—A State receiving a grant under this subtitle and 
an eligible local entity receiving a subgrant under this sub-
title shall not use any grant or subgrant funds to carry 
out any of the following activities: 
(1) An assessment that provides rewards or 
sanctions for individual children, teachers, or prin-
cipals. 
(2) An assessment that is used as the primary 
or sole method for assessing program effectiveness. 
(3) Evaluating children, other than for the pur-
poses of— 
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(A) improving instruction or the classroom 
environment; 
(B) targeting professional development; 
(C) determining the need for health, men-
tal health, disability, or family support services; 
(D) program evaluation for the purposes of 
program improvement and parent information; 
and 
(E) improving parent and family engage-
ment. 
SEC. 125. COORDINATION WITH HEAD START PROGRAMS. 
(a) INCREASED ACCESS FOR YOUNGER CHILDREN.— 
Not later than 1 year after the date of enactment of this 
Act, the Secretary and the Secretary of Health and 
Human Services shall develop a process— 
(1) for use in the event that Head Start pro-
grams funded under the Head Start Act (42 U.S.C. 
9831 et seq.) operate in States or regions that have 
achieved sustained universal, voluntary access to 4- 
year-old children who reside within the State and 
who are from families with incomes at or below 200 
percent of the poverty line to high-quality prekinder-
garten programs; and 
(2) for how such Head Start programs will 
begin converting slots for children who are age 4 on 
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the eligibility determination date to children who are 
age 3 on the eligibility determination date, or, when 
appropriate, converting Head Start programs into 
Early Head Start programs to serve infants and tod-
dlers. 
(b) COMMUNITY NEED AND RESOURCES.—The proc-
ess described in subsection (a) shall— 
(1) be carried out on a case-by-case basis and 
shall ensure that sufficient resources and time are 
allocated for the development of such a process so 
that no child or cohort is excluded from currently 
available services; and 
(2) ensure that any conversion shall be based 
on community need and not on the aggregate num-
ber of children served in a State or region that has 
achieved sustained, universal, voluntary access to 
high-quality prekindergarten programs. 
(c) PUBLIC COMMENT AND NOTICE.—Not fewer than 
90 days after the development of the proposed process de-
scribed in subsection (a), the Secretary and the Secretary 
of Health and Human Services shall publish a notice de-
scribing such proposed process for conversion in the Fed-
eral Register providing at least 90 days for public com-
ment. The Secretaries shall review and consider public 
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comments prior to finalizing the process for conversion of 
Head Start slots and programs. 
(d) REPORTS
TO CONGRESS.—Concurrently with 
publishing a notice in the Federal Register as described 
in subsection (c), the Secretaries shall provide a report 
to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate that pro-
vides a detailed description of the proposed process de-
scribed in subsection (a), including a description of the 
degree to which Head Start programs are providing State- 
funded high-quality prekindergarten programs as a result 
of the grant opportunity provided under this subtitle in 
States where Head Start programs are eligible for conver-
sion described in subsection (a). 
SEC. 126. TECHNICAL ASSISTANCE IN PROGRAM ADMINIS-
TRATION. 
In providing technical assistance to carry out activi-
ties under this title, the Secretary shall coordinate that 
technical assistance, in appropriate cases, with technical 
assistance provided by the Secretary of Health and 
Human Services to carry out the programs authorized 
under the Head Start Act (42 U.S.C. 9831 et seq.), the 
Child Care and Development Block Grant Act of 1990 (42 
U.S.C. 9858 et seq.), and the maternal, infant and early 
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childhood home visiting programs assisted under section 
511 of the Social Security Act (42 U.S.C. 711). 
SEC. 127. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this subtitle— 
(1) $1,300,000,000 for fiscal year 2016; 
(2) $3,250,000,000 for fiscal year 2017; 
(3) $5,780,000,000 for fiscal year 2018; 
(4) $7,580,000,000 for fiscal year 2019; 
(5) $8,960,000,000 for fiscal year 2020; and 
(6) such sums as may be necessary for each of 
fiscal years 2021 through 2025. 
Subtitle B—Prekindergarten 
Development Grants 
SEC. 151. PREKINDERGARTEN DEVELOPMENT GRANTS. 
(a) IN GENERAL.—From the amounts appropriated 
under subsection (f), the Secretary of Education, in con-
sultation with the Secretary of Health and Human Serv-
ices, shall award competitive grants to States that wish 
to increase the capacity and build the infrastructure with-
in the State to offer high-quality prekindergarten pro-
grams. 
(b) ELIGIBILITY.—A State that is not receiving funds 
under section 115 may compete for grant funds under this 
subtitle if the State provides an assurance that the State 
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will, through the support of grant funds awarded under 
this subtitle, meet the eligibility requirements of section 
115 not later than 3 years after the date the State first 
receives grant funds under this subtitle. 
(c) GRANTS.— 
(1) DURATION.—The Secretary shall award 
grants to States under this subtitle for a period of 
not more than 3 years and such grants shall not be 
renewed. 
(2) AUTHORITY TO SUBGRANT.— 
(A) IN
GENERAL.—A State receiving a 
grant under this subtitle may use the grant 
funds to make subgrants to eligible local enti-
ties (defined in section 112(7)) to carry out ac-
tivities under the grant. 
(B) ELIGIBLE LOCAL ENTITIES.—An eligi-
ble local entity receiving a subgrant under sub-
paragraph (A) shall comply with the require-
ments for States receiving a grant under this 
subtitle, as appropriate. 
(d) APPLICATION.— 
(1) IN GENERAL.—A Governor of a State that 
desires to receive a grant under this subtitle shall 
submit an application to the Secretary of Education 
at such time, in such manner, and accompanied by 
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such information as the Secretary may reasonably 
require, including a description of how the State 
plans to become eligible for grants under section 115 
by not later than 3 years after the date the State 
first receives grant funds under this subtitle. 
(2) DEVELOPMENT OF APPLICATION.—In devel-
oping an application for a grant under this subtitle, 
a Governor of a State shall consult with the State 
Advisory Council on Early Childhood Education and 
Care, and incorporate their recommendations, where 
applicable. 
(e) MATCHING REQUIREMENT.— 
(1) IN GENERAL.—To be eligible to receive a 
grant under this subtitle, a State shall contribute for 
the activities for which the grant was awarded non- 
Federal matching funds in an amount equal to not 
less than 20 percent of the amount of the grant. 
(2) NON-FEDERAL FUNDS.—To satisfy the re-
quirement of paragraph (1), a State may use— 
(A) cash; or 
(B) an in-kind contribution. 
(3) FINANCIAL HARDSHIP WAIVER.—The Sec-
retary may waive paragraph (1) or reduce the 
amount of matching funds required under that para-
graph for a State that has submitted an application 
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for a grant under this subtitle if the State dem-
onstrates, in the application, a need for such a waiv-
er or reduction due to extreme financial hardship, as 
determined by the Secretary of Education. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this sub-
title— 
(1) $750,000,000 for fiscal year 2016; and 
(2) such sums as may be necessary for each of 
fiscal years 2017 through 2025. 
TITLE II—RESTORING SUMMER 
PELL GRANTS 
SEC. 201. FEDERAL PELL GRANTS. 
Section 401(b) of the Higher Education Act of 1965 
(20 U.S.C. 1070a) is amended— 
(1) by redesignating paragraphs (5) through 
(7) as paragraphs (6) through (8), respectively; 
(2) in paragraph (2)(A)(ii), by striking ‘‘para-
graph (7)(B)’’ each place it appears and inserting 
‘‘paragraph (8)(B)’’; and 
(3) by inserting after paragraph (4), the fol-
lowing: 
‘‘(5)(A) The Secretary shall award a student 
not more than two Federal Pell Grants during a sin-
gle award year to permit such student to accelerate 
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the student’s progress toward a degree or certificate 
if the student is enrolled— 
‘‘(i) on at least a half-time basis for a pe-
riod of more than one academic year, or more 
than two semesters or an equivalent period of 
time, during a single award year; and 
‘‘(ii) in a program of instruction at an in-
stitution of higher education for which the insti-
tution awards an associate or baccalaureate de-
gree or a certificate. 
‘‘(B) In the case of a student receiving more 
than one Federal Pell Grant in a single award year 
under subparagraph (A), the total amount of Fed-
eral Pell Grants awarded to such student for the 
award year may exceed the maximum basic grant 
level specified in the appropriate appropriations Act 
for such award year.’’. 
TITLE III—RESTORING TITLE IV 
ABILITY-TO-BENEFIT 
ELIGI-
BILITY 
SEC. 301. ABILITY-TO-BENEFIT ELIGIBILITY. 
(a) IN GENERAL.—Section 484(d) of the Higher 
Education Act of 1965 (20 U.S.C. 1091(d)) is amended 
to read as follows: 
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‘‘(d) STUDENTS WHO ARE NOT HIGH SCHOOL 
GRADUATES.—In order for a student who does not have 
a certificate of graduation from a school providing sec-
ondary education, or the recognized equivalent of such cer-
tificate, to be eligible for any assistance under subparts 
1, 3, and 4 of part A and parts B, C, D, and E of this 
title, the student shall meet one of the following standards: 
‘‘(1) The student shall take an independently 
administered examination and shall achieve a score, 
specified by the Secretary, demonstrating that such 
student can benefit from the education or training 
being offered. Such examination shall be approved 
by the Secretary on the basis of compliance with 
such standards for development, administration, and 
scoring as the Secretary may prescribe in regula-
tions. 
‘‘(2) The student shall be determined as having 
the ability to benefit from the education or training 
in accordance with such process as the State shall 
prescribe. Any such process described or approved 
by a State for the purposes of this section shall be 
effective 6 months after the date of submission to 
the Secretary unless the Secretary disapproves such 
process. In determining whether to approve or dis-
approve such process, the Secretary shall take into 
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account the effectiveness of such process in enabling 
students without high school diplomas or the equiva-
lent thereof to benefit from the instruction offered 
by institutions utilizing such process, and shall also 
take into account the cultural diversity, economic 
circumstances, and educational preparation of the 
populations served by the institutions. 
‘‘(3) The student has completed a secondary 
school education in a home school setting that is 
treated as a home school or private school under 
State law. 
‘‘(4) The student shall be determined by the in-
stitution of higher education as having the ability to 
benefit from the education or training offered by the 
institution of higher education upon satisfactory 
completion of six credit hours or the equivalent 
coursework that are applicable toward a degree or 
certificate offered by the institution of higher edu-
cation.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
401(b)(2)(A)(ii) of the Higher Education Act of 1965 (20 
U.S.C. 1070a(b)(2)(A)(ii)) is amended by striking 
‘‘484(d)(1)(A)’’ and inserting ‘‘484(d)’’. 
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TITLE IV—YOUTH PROMISE/FED-
ERAL 
COORDINATION 
OF 
LOCAL 
AND 
TRIBAL 
JUVE-
NILE JUSTICE INFORMATION 
AND EFFORTS 
SEC. 401. PROMISE ADVISORY PANEL. 
(a) ORGANIZATION
OF STATE ADVISORY GROUP 
MEMBER REPRESENTATIVES.—Section 223(f) of the Ju-
venile Justice and Delinquency Prevention Act of 1974 
(42 U.S.C. 5633(f)) is amended— 
(1) in paragraph (1), by striking ‘‘an eligible 
organization composed of member representatives of 
the State advisory groups appointed under sub-
section (a)(3)’’ and inserting ‘‘a nonpartisan, non-
profit organization that is described in section 
501(c)(3) of the Internal Revenue Code of 1986,’’; 
and 
(2) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) ASSISTANCE.—To be eligible to receive 
such assistance, such organization shall— 
‘‘(A) be governed by individuals who— 
‘‘(i) have been appointed by a chief 
executive of a State to serve as a State ad-
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visory group member under subsection 
(a)(3); and 
‘‘(ii) are elected to serve as a gov-
erning officer of such organization by a 
majority of the Chairs (or Chair-designees) 
of all such State advisory groups; 
‘‘(B) include member representatives from 
a majority of such State advisory groups, who 
shall be representative of regionally and demo-
graphically diverse States and jurisdictions; 
‘‘(C) annually seek appointments by the 
chief executive of each State of one State advi-
sory group member and one alternate State ad-
visory group member from each such State to 
implement the advisory functions specified in 
clauses (iv) and (v) of subparagraph (D), in-
cluding serving on the PROMISE Advisory 
Panel, and make a record of any such appoint-
ments available to the public; and 
‘‘(D) agree to carry out activities that in-
clude— 
‘‘(i) conducting an annual conference 
of such member representatives for pur-
poses relating to the activities of such 
State advisory groups; 
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‘‘(ii) disseminating information, data, 
standards, advanced techniques, and pro-
gram models; 
‘‘(iii) reviewing Federal policies re-
garding juvenile justice and delinquency 
prevention; 
‘‘(iv) advising the Administrator with 
respect to particular functions or aspects 
of the work of the Office, and appointing 
a representative, diverse group of members 
of such organization under subparagraph 
(C) to serve as an advisory panel of State 
juvenile justice advisors (referred to as the 
‘PROMISE Advisory Panel’) to carry out 
the functions specified in subsection (g); 
and 
‘‘(v) advising the President and Con-
gress with regard to State perspectives on 
the operation of the Office and Federal 
legislation pertaining to juvenile justice 
and delinquency prevention.’’. 
(b) PROMISE ADVISORY PANEL.—Section 223 of 
the Juvenile Justice and Delinquency Prevention Act of 
1974 (42 U.S.C. 5633) is further amended by adding at 
the end the following new subsection: 
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‘‘(g) PROMISE ADVISORY PANEL.— 
‘‘(1) FUNCTIONS.—The PROMISE Advisory 
Panel required under subsection (f)(2)(D) shall— 
‘‘(A) assess successful evidence-based and 
promising practices related to juvenile delin-
quency and criminal street gang activity preven-
tion and intervention carried out by PROMISE 
Coordinating Councils under section 511 of title 
V of division A of the Pathways Out of Poverty 
Act of 2015; 
‘‘(B) provide the Administrator with a list 
of individuals and organizations with experience 
in administering or evaluating practices that 
serve youth involved in, or at risk of involve-
ment in, juvenile delinquency and criminal 
street gang activity, from which the Adminis-
trator shall select individuals who shall— 
‘‘(i) provide to the Administrator peer 
reviews of applications submitted by units 
of local government and Indian tribes pur-
suant to title V of division A of the Path-
ways Out of Poverty Act of 2015, to en-
sure that such applications demonstrate a 
clear plan to— 
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‘‘(I) serve youth as part of an en-
tire family unit; and 
‘‘(II) coordinate the delivery of 
service to youth among agencies; and 
‘‘(ii) advise the Administrator with re-
spect to the award and allocation of 
PROMISE Planning grants to local and 
tribal governments that develop PROMISE 
Coordinating Councils, and of PROMISE 
Implementation grants to such PROMISE 
Coordinating Councils, pursuant to of title 
V of division A of the Pathways Out of 
Poverty Act of 2015; and 
‘‘(C) develop performance standards to be 
used to evaluate programs and activities carried 
out with grants under of title V of division A 
of the Pathways Out of Poverty Act of 2015, 
including the evaluation of changes achieved as 
a result of such programs and activities related 
to decreases in juvenile delinquency and crimi-
nal street gang activity, including— 
‘‘(i) prevention of involvement by at- 
risk youth in juvenile delinquency or crimi-
nal street gang activity; 
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‘‘(ii) diversion of youth with a high 
risk of continuing involvement in juvenile 
delinquency or criminal street gang activ-
ity; and 
‘‘(iii) financial savings from deferred 
or eliminated costs, or other benefits, as a 
result of such programs and activities, and 
the reinvestment by the unit or tribe of 
any such savings. 
‘‘(2) ANNUAL
REPORT.—Not later than 18 
months after the date of the effective date of this 
subsection, and annually thereafter, the PROMISE 
Advisory Panel shall prepare a report containing the 
findings and determinations under paragraph (1)(A) 
and shall submit such report to Congress, the Presi-
dent, the Attorney General, and the chief executive 
and chief law enforcement officer of each State, unit 
of local government, and Indian tribe.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
299(a)(1) of the Juvenile Justice and Delinquency Preven-
tion Act of 1974 (42 U.S.C. 5671(a)(1)) is amended to 
read as follows: 
‘‘(1) There are authorized to be appropriated 
such sums as may be necessary to carry out this 
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title for each of the fiscal years 2015 through 
2017.’’. 
SEC. 402. GEOGRAPHIC ASSESSMENT OF RESOURCE ALLO-
CATION. 
(a) GRANT FOR COLLECTION OF DATA TO DETER-
MINE NEED.—Subject to the availability of appropria-
tions, the Administrator of the Office of Juvenile Justice 
and Delinquency Prevention shall award a grant, on a 
competitive basis, to an organization to— 
(1) collect and analyze data related to the exist-
ing juvenile delinquency and criminal street gang ac-
tivity prevention and intervention needs and re-
sources in each designated geographic area; 
(2) use the data collected and analyzed under 
paragraph (1) to compile a list of designated geo-
graphic areas that have the most need of resources, 
based on such data, to carry out juvenile delin-
quency and criminal street gang activity prevention 
and intervention; 
(3) use the data collected and analyzed under 
paragraph (1) to rank the areas listed under para-
graph (2) in descending order by the amount of need 
for resources to carry out juvenile delinquency and 
criminal street gang activity prevention and inter-
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vention, ranking the area with the greatest need for 
such resources highest; and 
(4) periodically update the list and rankings 
under paragraph (3) as the Administrator deter-
mines to be appropriate. 
(b) DATA SOURCES.—In compiling such list and de-
termining such rankings, the organization shall collect and 
analyze data relating to juvenile delinquency and criminal 
street gang activity prevention and intervention— 
(1) using the geographic information system 
and Web-based mapping application known as the 
Socioeconomic Mapping and Resource Topography 
(SMART) system; 
(2) from the Department of Health and Human 
Services, the Department of Labor, the Department 
of Housing and Urban Development, and the De-
partment of Education; and 
(3) from the annual KIDS Count Data Book 
and other data made available by the KIDS Count 
initiative of the Annie E. Casey Foundation. 
(c) USE OF DATA BY THE ADMINISTRATOR.—The list 
and rankings required by this section shall be provided 
to the Administrator to be used to provide funds under 
this section in the most strategic and effective manner to 
ensure that resources and services are provided to youth 
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in the communities with the greatest need for such re-
sources and services. 
(d) LIMITATION ON USE OF COLLECTED DATA.— 
The information collected and analyzed under this section 
may not be used for any purpose other than to carry out 
the purposes of this section. Such information may not 
be used for any purpose related to the investigation or 
prosecution of any person, or for profiling of individuals 
based on race, ethnicity, socio-economic status, or any 
other characteristic. 
(e) AUTHORIZATION
AND LIMITATION
OF APPRO-
PRIATIONS.—Of the amount appropriated for fiscal year 
2015 to carry out this section and subtitle A of title V 
of this Act, not more than 1 percent of such amount, or 
$1,000,000, whichever is less, shall be available to carry 
out this section. 
TITLE V—PROMISE GRANTS 
SEC. 501. PURPOSES. 
The purposes of the grant programs established 
under this title are to— 
(1) enable local and tribal communities to as-
sess the unmet needs of youth who are involved in, 
or are at risk of involvement in, juvenile delinquency 
or criminal street gangs; 
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(2) develop plans appropriate for a community 
to address those unmet needs with juvenile delin-
quency and gang prevention and intervention prac-
tices; and 
(3) implement and evaluate such plans in a 
manner consistent with this title. 
SEC. 502. DEFINITIONS. 
In this title: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Office of Ju-
venile Justice and Delinquency Prevention. 
(2) 
COMMUNITY.—The 
term 
‘‘community’’ 
means a unit of local government or an Indian tribe, 
or part of such a unit or tribe, as determined by 
such a unit or tribe for the purpose of applying for 
a grant under this title. 
(3) DESIGNATED
GEOGRAPHIC
AREA.—The 
term ‘‘designated geographic area’’ means a 5-digit 
postal ZIP Code assigned to a geographic area by 
the United States Postal Service. 
(4) EVIDENCE-BASED.— 
(A) IN
GENERAL.—The term ‘‘evidence- 
based’’, when used with respect to a practice re-
lating to juvenile delinquency and criminal 
street gang activity prevention and intervention, 
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means a practice (including a service, program, 
activity, intervention, technology, or strategy) 
for which the Administrator has determined— 
(i) causal evidence documents a rela-
tionship between the practice and its in-
tended outcome, based on measures of the 
direction and size of a change, and the ex-
tent to which a change may be attributed 
to the practice; and 
(ii) the use of scientific methods rules 
out, to the extent possible, alternative ex-
planations for the documented change. 
(B) SCIENTIFIC METHODS.—For the pur-
poses of subparagraph (A), the term ‘‘scientific 
methods’’ means— 
(i) evaluation by an experimental trial, 
in which participants are randomly as-
signed to participate in the practice that is 
subject to such trial; or 
(ii) evaluation by a quasi-experimental 
trial, in which the outcomes for partici-
pants are compared with outcomes for a 
control group that is made up of individ-
uals who are similar to such participants. 
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(5) INTERVENTION.—The term ‘‘intervention’’ 
means the provision of programs and services that 
are supported by research, are evidence-based or 
promising practices, and are provided to youth who 
are involved in, or who are identified by evidence- 
based risk assessment methods as being at high risk 
of continued involvement in, juvenile delinquency or 
criminal street gangs, as a result of indications that 
demonstrate involvement with problems such as tru-
ancy, substance abuse, mental health treatment 
needs, or siblings who have had involvement with ju-
venile or criminal justice systems. 
(6) JUVENILE
DELINQUENCY
AND
CRIMINAL 
STREET
GANG
ACTIVITY
PREVENTION.—The term 
‘‘juvenile delinquency and criminal street gang activ-
ity prevention’’ means the provision of programs and 
resources to children and families who have not yet 
had substantial contact with criminal justice or juve-
nile justice systems, that— 
(A) are designed to reduce potential juve-
nile delinquency and criminal street gang activ-
ity risks; and 
(B) are evidence-based or promising edu-
cational, health, mental health, school-based, 
community-based, faith-based, parenting, job 
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training, social opportunities and experiences, 
or other programs, for youth and their families, 
that have been demonstrated to be effective in 
reducing juvenile delinquency and criminal 
street gang activity risks. 
(7) PROMISING.—The term ‘‘promising’’, when 
used with respect to a practice relating to juvenile 
delinquency and criminal street gang activity preven-
tion and intervention, means a practice (including a 
service, program, activity, intervention, technology, 
or strategy) that, based on statistical analyses or a 
theory of change, the Administrator has deter-
mined— 
(A) has outcomes from an evaluation that 
demonstrate such practice reduces juvenile de-
linquency and criminal street gang activity; and 
(B) is part of a study being conducted to 
determine if such a practice is evidence-based. 
(8) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States 
Virgin Islands, American Samoa, Guam, the North-
ern Mariana Islands, and any other territories or 
possessions of the United States. 
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(9) THEORY OF CHANGE.—The term ‘‘theory of 
change’’ means a program planning strategy ap-
proved by the Administrator that outlines the types 
of interventions and outcomes essential to achieving 
a set of program goals. 
(10) YOUTH.—The term ‘‘youth’’ means— 
(A) an individual who is 18 years of age or 
younger; or 
(B) in any State in which the maximum 
age at which the juvenile justice system of such 
State has jurisdiction over individuals exceeds 
18 years of age, an individual who is such max-
imum age or younger. 
Subtitle A—PROMISE Assessment 
and Planning Grants 
SEC. 510. PROMISE ASSESSMENT AND PLANNING GRANTS 
AUTHORIZED. 
(a) GRANTS AUTHORIZED.—The Administrator is 
authorized to award grants to units of local government 
and Indian tribes to assist PROMISE Coordinating Coun-
cils with planning and assessing evidence-based and prom-
ising practices relating to juvenile delinquency and crimi-
nal street gang activity prevention and intervention, espe-
cially for youth who are involved in, or who are at risk 
of involvement in, juvenile delinquency and criminal street 
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gang activity. Such PROMISE Coordinating Councils 
shall— 
(1) conduct an objective needs and strengths 
assessment in accordance with section 512; and 
(2) develop a PROMISE Plan in accordance 
with section 513, based on the assessment conducted 
in accordance with section 512. 
(b) GRANT
DURATION, AMOUNT, AND
ALLOCA-
TION.— 
(1) DURATION.—A grant awarded under this 
section shall be for a period not to exceed one year. 
(2) 
MAXIMUM
GRANT
AMOUNT.—A 
grant 
awarded under this section shall not exceed 
$300,000. 
(c) ALLOCATION.— 
(1) MINIMUM
ALLOCATION.—Subject to the 
availability of appropriations, the Administrator 
shall ensure that the total funds allocated under this 
section to units of local governments and Indian 
tribes in a State shall not be less than $1,000,000. 
(2) RATABLE
REDUCTION.—If the amount 
made available for grants under this section for any 
fiscal year is less than the amount required to pro-
vide the minimum allocation of funds under para-
graph (1) to units of local government and Indian 
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tribes in each State, then the amount of such min-
imum allocation shall be ratably reduced. 
SEC. 511. PROMISE COORDINATING COUNCILS. 
To be eligible to receive a grant under this subtitle, 
a unit of local government or an Indian tribe shall estab-
lish a PROMISE Coordinating Council for each commu-
nity of such unit or tribe, respectively, for which such unit 
or tribe is applying for a grant under this subtitle. Each 
such community shall include one or more designated geo-
graphic areas identified on the list required under section 
402(a)(2). The members of such a PROMISE Coordi-
nating Council shall be representatives of public and pri-
vate sector entities and individuals that— 
(1) shall include, to the extent possible, at least 
one representative from each of the following: 
(A) the local chief executive’s office; 
(B) a local educational agency; 
(C) a local health agency or provider; 
(D) a local mental health agency or pro-
vider, unless the representative under subpara-
graph (C) also meets the requirements of this 
subparagraph; 
(E) a local public housing agency; 
(F) a local law enforcement agency; 
(G) a local child welfare agency; 
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(H) a local juvenile court; 
(I) a local juvenile prosecutor’s office; 
(J) a private juvenile residential care enti-
ty; 
(K) a local juvenile public defender’s office; 
(L) a State juvenile correctional entity; 
(M) a local business community represent-
ative; and 
(N) a local faith-based community rep-
resentative; 
(2) shall include two representatives from each 
of the following: 
(A) parents who have minor children, and 
who have an interest in the local juvenile or 
criminal justice systems; 
(B) youth between the ages of 15 and 24 
who reside in the jurisdiction of the unit or 
tribe; and 
(C) members from nonprofit community- 
based organizations that provide effective delin-
quency prevention and intervention to youth in 
the jurisdiction of the unit or tribe; and 
(3) may include other members, as the unit or 
tribe determines to be appropriate. 
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SEC. 512. NEEDS AND STRENGTHS ASSESSMENT. 
(a) ASSESSMENT.—Each PROMISE Coordinating 
Council receiving funds from a unit of local government 
or Indian tribe under this subtitle shall conduct an objec-
tive strengths and needs assessment of the resources of 
the community for which such PROMISE Coordinating 
Council was established, to identify the unmet needs of 
youth in the community with respect to evidence-based 
and promising practices related to juvenile delinquency 
and criminal street gang activity prevention and interven-
tion. Such assessment shall include, with respect to the 
community for which such PROMISE Coordinating Coun-
cil was established— 
(1) the number of youth who are at-risk of in-
volvement in juvenile delinquency or street gang ac-
tivity; 
(2) the number of youth who are involved in ju-
venile delinquency or criminal street gang activity, 
including the number of such youth who are at high 
risk of continued involvement; 
(3) youth unemployment rates during the sum-
mer; 
(4) the number of individuals on public finan-
cial assistance (including a breakdown of the num-
bers of men, women, and children on such assist-
ance); 
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(5) the estimated number of youth who are 
chronically truant; 
(6) the number of youth who have dropped out 
of school in the previous year; 
(7) for the year before such assessment, the es-
timated total amount expended (by the community 
and other entities) for the incarceration of offenders 
who were convicted or adjudicated delinquent for an 
offense that was committed in such community, in-
cluding amounts expended for the incarceration of 
offenders in prisons, jails, and juvenile facilities that 
are located in the United States but are not located 
in such community; 
(8) a comparison of the amount under para-
graph (7) with an estimation of the amount that 
would be expended for the incarceration of offenders 
described in such paragraph if the number of offend-
ers described in such paragraph was equal to the na-
tional average incarceration rate per 100,000 popu-
lation; 
(9) a description of evidence-based and prom-
ising practices related to juvenile delinquency and 
criminal street gang activity prevention available for 
youth in the community, including school-based pro-
grams, after school programs (particularly programs 
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that have activities available for youth between 
3 p.m. and 6 p.m. in the afternoon), weekend ac-
tivities and programs, youth mentoring programs, 
faith and community-based programs, summer ac-
tivities, and summer jobs, if any; and 
(10) a description of evidence-based and prom-
ising intervention practices available for youth in the 
community. 
(b) LIMITATION ON USE OF ASSESSMENT INFORMA-
TION.—Information gathered pursuant to this section may 
be used for the sole purpose of developing a PROMISE 
Plan in accordance with this subtitle. 
SEC. 513. PROMISE PLAN COMPONENTS. 
(a) IN GENERAL.—Each PROMISE Coordinating 
Council receiving funds from a unit of local government 
or Indian tribe under this subtitle shall develop a PROM-
ISE Plan to provide for the coordination of, and, as appro-
priate, to support the delivery of, evidence-based and 
promising practices related to juvenile delinquency and 
criminal street gang activity prevention and intervention 
to youth and families who reside in the community for 
which such PROMISE Coordinating Council was estab-
lished. Such a PROMISE Plan shall— 
(1) include the strategy by which the PROM-
ISE Coordinating Council plans to prioritize and al-
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locate resources and services toward the unmet 
needs of youth in the community, consistent with the 
needs and available resources of communities with 
the greatest need for assistance, as determined pur-
suant to section 402; 
(2) include a combination of evidence-based and 
promising prevention and intervention practices that 
are responsive to the needs of the community; and 
(3) ensure that cultural and linguistic needs of 
the community are met. 
(b) MANDATORY COMPONENTS.—Each PROMISE 
Plan shall— 
(1) include a plan to connect youth identified in 
paragraphs (1) and (2) of section 512(a) to evi-
dence-based and promising practices related to juve-
nile delinquency and criminal street gang activity 
prevention and intervention; 
(2) identify the amount or percentage of local 
funds that are available to the PROMISE Coordi-
nating Council to carry out the PROMISE Plan; 
(3) provide strategies to improve indigent de-
fense delivery systems, with particular attention 
given to groups of children who are disproportion-
ately represented in the State delinquency system 
and Federal criminal justice system, as compared to 
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the representation of such groups in the general 
population of the State; 
(4) provide for training (which complies with 
the American Bar Association Juvenile Justice 
Standards for the representation and care of youth 
in the juvenile justice system) of prosecutors, de-
fenders, probation officers, judges and other court 
personnel related to issues concerning the develop-
mental needs, challenges, and potential of youth in 
the juvenile justice system (including training re-
lated to adolescent development and mental health 
issues, and the expected impact of evidence-based 
practices and cost reduction strategies); 
(5) ensure that the number of youth involved in 
the juvenile delinquency and criminal justice systems 
does not increase as a result of the activities under-
taken with the funds provided under this subtitle; 
(6) describe the coordinated strategy that will 
be used by the PROMISE Coordinating Council to 
provide at-risk youth with evidence-based and prom-
ising practices related to juvenile delinquency and 
criminal street gang activity prevention and inter-
vention; 
(7) propose the performance evaluation process 
to be used to carry out section 530(d), which shall 
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include performance measures to assess efforts to 
address the unmet needs of youth in the community 
with evidence-based and promising practices related 
to juvenile delinquency and criminal street gang ac-
tivity prevention and intervention; and 
(8) identify the research partner the PROMISE 
Coordinating Council will use to obtain information 
on evidence-based and promising practices related to 
juvenile delinquency and criminal street gang activ-
ity prevention and intervention, and for the evalua-
tion under section 530(d) of the results of the activi-
ties carried out with funds under this subtitle. 
(c) VOLUNTARY COMPONENTS.—In addition to the 
components under subsection (b), a PROMISE Plan may 
include evidence-based or promising practices related to 
juvenile delinquency and criminal street gang activity pre-
vention and intervention in the following categories: 
(1) Early childhood development services (such 
as pre-natal and neo-natal health services), early 
childhood prevention, voluntary home visiting pro-
grams, nurse-family partnership programs, par-
enting and healthy relationship skills training, child 
abuse prevention programs, Early Head Start, and 
Head Start. 
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(2) Child protection and safety services (such as 
foster care and adoption assistance programs), fam-
ily stabilization programs, child welfare services, and 
family violence intervention programs. 
(3) Youth and adolescent development services, 
including job training and apprenticeship programs, 
job placement and retention training, education and 
after school programs (such as school programs with 
shared governance by students, teachers, and par-
ents, and activities for youth between the hours of 
3 p.m. and 6 p.m. in the afternoon), mentoring pro-
grams, conflict resolution skills training, sports, 
arts, life skills, employment and recreation pro-
grams, summer jobs, and summer recreation pro-
grams, and alternative school resources for youth 
who have dropped out of school or demonstrate 
chronic truancy. 
(4) Health and mental health services, includ-
ing cognitive behavioral therapy, play therapy, and 
peer mentoring and counseling. 
(5) Substance abuse counseling and treatment 
services, including harm-reduction strategies. 
(6) Emergency, transitional, and permanent 
housing assistance (such as safe shelter and housing 
for runaway and homeless youth). 
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100 
(7) Targeted gang prevention, intervention, and 
exit services such as tattoo removal, successful mod-
els of anti-gang crime outreach programs (such as 
‘‘street worker’’ programs), and other criminal street 
gang truce or peacemaking activities. 
(8) Training and education programs for preg-
nant teens and teen parents. 
(9) Alternatives to detention and confinement 
programs (such as mandated participation in com-
munity service, restitution, counseling, and intensive 
individual and family therapeutic approaches). 
(10) Pre-release, post-release, and reentry serv-
ices to assist detained and incarcerated youth with 
transitioning back into and reentering the commu-
nity. 
SEC. 514. AUTHORIZATION OF APPROPRIATIONS. 
Subject to the limitation under section 402(e), there 
are authorized to be appropriated for fiscal year 2015, 
such sums as may be necessary to carry out this subtitle 
and section 402. 
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101 
Subtitle B—PROMISE 
Implementation Grants 
SEC. 530. PROMISE IMPLEMENTATION GRANTS AUTHOR-
IZED. 
(a) PROMISE IMPLEMENTATION GRANTS AUTHOR-
IZED.—The Administrator of the Office of Juvenile Jus-
tice and Delinquency Prevention is authorized to award 
grants to units of local government and Indian tribes to 
assist PROMISE Coordinating Councils with imple-
menting PROMISE Plans developed pursuant to subtitle 
A. 
(b) GRANT DURATION AND AMOUNT.— 
(1) DURATION.—A grant awarded under this 
subtitle shall be for a three-year period. 
(2) 
MAXIMUM
GRANT
AMOUNT.—A 
grant 
awarded under this subtitle shall not be for more 
than $10,000,000 per year for each year of the 
grant period. 
(c) NON-FEDERAL FUNDS REQUIRED.—For each fis-
cal year during the three-year grant period for a grant 
under this subtitle, each unit of local government or In-
dian tribe receiving such a grant for a PROMISE Coordi-
nating Council shall provide, from non-Federal funds, in 
cash or in-kind, 25 percent of the costs of the activities 
carried out with such grant. 
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102 
(d) EVALUATION.—Of any funds provided to a unit 
of local government or an Indian tribe for a grant under 
this subtitle, not more than $100,000 shall be used to pro-
vide a contract to a competitively selected organization to 
assess the progress of the unit or tribe in addressing the 
unmet needs of youth in the community, in accordance 
with the performance measures under section 513(b)(7). 
SEC. 531. PROMISE IMPLEMENTATION GRANT APPLICA-
TION REQUIREMENTS. 
(a) APPLICATION REQUIRED.—To be eligible to re-
ceive a PROMISE Implementation grant under this sub-
title, a unit of local government or Indian tribe that re-
ceived a PROMISE Assessment and Planning grant under 
subtitle A shall submit an application to the Administrator 
of the Office of Juvenile Justice and Delinquency Preven-
tion not later than one year after the date such unit of 
local government or Indian tribe was awarded such grant 
under subtitle A, in such manner, and accompanied by 
such information, as the Administrator, after consultation 
with the organization under section 223(f)(1) of the Juve-
nile Justice and Delinquency Prevention Act of 1974 (42 
U.S.C. 5633(f)(1)), may require. 
(b) CONTENTS OF APPLICATION.—Each application 
submitted under subsection (a) shall— 
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103 
(1) identify potential savings from criminal jus-
tice costs, public assistance costs, and other costs 
avoided by utilizing evidence-based and promising 
practices related to juvenile delinquency and crimi-
nal street gang activity prevention and intervention; 
(2) document— 
(A) investment in evidence-based and 
promising practices related to juvenile delin-
quency and criminal street gang activity preven-
tion and intervention to be provided by the unit 
of local government or Indian tribe; 
(B) the activities to be undertaken with 
the grants funds; 
(C) any expected efficiencies in the juvenile 
justice or other local systems to be attained as 
a result of implementation of the programs 
funded by the grant; and 
(D) outcomes from such activities, in 
terms of the expected numbers related to re-
duced criminal activity; 
(3) describe how savings sustained from invest-
ment in prevention and intervention practices will be 
reinvested in the continuing implementation of the 
PROMISE Plan; and 
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104 
(4) provide an assurance that the local fiscal 
contribution with respect to evidence-based and 
promising practices related to juvenile delinquency 
and criminal street gang activity prevention and 
intervention in the community for which the PROM-
ISE Coordinating Council was established for each 
year of the grant period will not be less than the 
local fiscal contribution with respect to such prac-
tices in the community for the year preceding the 
first year of the grant period. 
SEC. 532. GRANT AWARD GUIDELINES. 
(a) SELECTION AND DISTRIBUTION.—Grants award-
ed under this subtitle shall be awarded on a competitive 
basis. The Administrator shall— 
(1) take such steps as may be necessary to en-
sure that grants are awarded to units of local gov-
ernments and Indian tribes in areas with the highest 
concentrations of youth who are— 
(A) at-risk of involvement in juvenile delin-
quency or criminal street gang activity; and 
(B) involved in juvenile delinquency or 
street gang activity and who are at high-risk of 
continued involvement; and 
(2) give consideration to the need for grants to 
be awarded to units of local governments and Indian 
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105 
tribes in each region of the United States, and 
among urban, suburban, and rural areas. 
(b) EXTENSION OF GRANT AWARD.—The Adminis-
trator may extend the grant period under section 
530(b)(1) for a PROMISE Implementation grant to a unit 
of local government or an Indian tribe, in accordance with 
regulations issued by the Administrator. 
(c) RENEWAL OF GRANT AWARD.—Subject to the 
availability of appropriations, the Administrator may 
renew a PROMISE Implementation grant to a unit of 
local government or an Indian tribe to provide such unit 
or tribe with additional funds to continue implementation 
of a PROMISE Plan. Such a renewal— 
(1) shall be initiated by an application for re-
newal from a unit of local government or an Indian 
tribe; 
(2) shall be carried out in accordance with reg-
ulations issued by the Administrator; and 
(3) shall not be granted unless the Adminis-
trator determines such a renewal to be appropriate 
based on the results of the evaluation conducted 
under section 523(a) with respect to the community 
of such unit or tribe for which a PROMISE Coordi-
nating Council was established, and for which such 
unit or tribe is applying for renewal. 
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106 
SEC. 533. REPORTS. 
Not later than one year after the end of the grant 
period for which a unit of local government or an Indian 
tribe receives a PROMISE Implementation grant, and an-
nually thereafter for as long as such unit or tribe con-
tinues to receive Federal funding for a PROMISE Coordi-
nating Council, such unit or tribe shall report to the Ad-
ministrator regarding the use of Federal funds to imple-
ment the PROMISE Plan developed under subtitle A. 
SEC. 534. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this subtitle such sums as may be necessary for each of 
the fiscal years 2015 through 2017. 
Subtitle C—General PROMISE 
Grant Provisions 
SEC. 540. NONSUPPLANTING CLAUSE. 
A unit of local government or Indian tribe receiving 
a grant under this title shall use such grant only to supple-
ment, and not supplant, the amount of funds that, in the 
absence of such grant, would be available to address the 
needs of youth in the community with respect to evidence- 
based and promising practices related to juvenile delin-
quency and criminal street gang activity prevention and 
intervention. 
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107 
SEC. 541. GRANT APPLICATION REVIEW PANEL. 
The Administrator of the Office of Juvenile Justice 
and Delinquency Prevention, in conjunction with the 
PROMISE Advisory Panel, shall establish and utilize a 
transparent, reliable, and valid system for evaluating ap-
plications for PROMISE Assessment and Planning grants 
and for PROMISE Implementation grants, and shall de-
termine which applicants meet the criteria for funding, 
based primarily on a determination of greatest need (in 
accordance with section 402), with due consideration to 
other enumerated factors and the indicated ability of the 
applicant to successfully implement the program described 
in the application. 
SEC. 542. EVALUATION OF PROMISE GRANT PROGRAMS. 
Subject to the availability of appropriations under 
this title, the Administrator shall, in consultation with the 
organization provided assistance under section 223(f)(1) 
of the Juvenile Justice and Delinquency Prevention Act 
of 1974 (42 U.S.C. 5633(f)(1)), provide for an evaluation 
of the programs and activities carried out with grants 
under this title. In carrying out this section, the Adminis-
trator shall— 
(1) award grants to institutions of higher edu-
cation (including institutions that are eligible to re-
ceive funds under part F of title III of the Higher 
Education Act of 1965 (20 U.S.C. 1067q et seq.)), 
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108 
to facilitate the evaluation process and measurement 
of achieved outcomes; 
(2) identify evidence-based and promising prac-
tices used by PROMISE Coordinating Councils 
under PROMISE Implementation grants that have 
proven to be effective in preventing involvement in, 
or diverting further involvement in, juvenile delin-
quency or criminal street gang activity; and 
(3) ensure— 
(A) that such evaluation is based on the 
performance standards that are developed by 
the PROMISE Advisory Panel in accordance 
with section 223(g) of the Juvenile Justice and 
Delinquency Prevention Act of 1974 (as added 
by section 401(b) of title IV of this division); 
(B) the development of longitudinal and 
clinical trial evaluation and performance meas-
urements with regard to the evidence-based and 
promising practices funded under this title; and 
(C) the dissemination of the practices iden-
tified in paragraph (2) to units of local govern-
ment and Indian tribes to promote the use of 
such practices by such units and tribes to pre-
vent involvement in, or to divert further involve-
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109 
ment in, juvenile delinquency or criminal street 
gang activity. 
DIVISION B—HOUSING 
TITLE VI—COMMON SENSE 
HOUSING INVESTMENT 
SEC. 601. CONGRESSIONAL FINDINGS. 
The Congress finds the following: 
(1) Two principal Federal housing goals are to 
increase the rate of home ownership and make rent-
al housing affordable for low-income families and in-
dividuals. 
(2) Much more progress has been achieved on 
the first goal than on the second goal. 
(3) The Federal Government devotes more than 
three times the amount of budgetary resources to 
supporting home ownership than it devotes to mak-
ing affordable rental housing available. 
(4) The burden of housing costs is more pro-
nounced among renters than among owners. 
(5) There is a shortage of more than 7 million 
homes affordable to families in the bottom 20 per-
cent of income, meaning that there are only 30 af-
fordable units for every 100 families. 
(6) Only one in four families that qualify for 
rental housing assistance receives benefits. 
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110 
(7) Housing assistance waiting lists can be 10 
years long and in many communities are closed. 
(8) The shortage of rental homes that are af-
fordable for extremely low-income households to be 
the principal cause of homelessness in the United 
States. 
(9) Public housing facilities in the United 
States have more than $26 billion in deferred main-
tenance after decades of neglect which results in a 
loss of 10,000 units each year. 
(10) The low-income housing tax credit success-
fully provides 100,000 units of affordable housing 
every year. 
(11) Every tax reform commission has rec-
ommended capping the mortgage interest deduction 
and converting it to a fairer and simpler credit. 
(12) More than 75 percent of the value of the 
mortgage interest deduction inures to the benefit of 
the top 20 percent of earners. 
(13) Fewer than half of tax filers with a home 
mortgage claim the mortgage interest deduction. 
(14) Only 9 percent of rural tax filers claim the 
mortgage interest deduction. 
(15) Ninety-six percent of homes sold between 
2005 and 2011 sold for less than $500,000. 
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111 
(16) A better approach that provides equitable 
benefits for families who buy homes, enables more 
low- and moderate-income homeowners to receive a 
benefit, and invests in affordable rental housing to 
assist those who used to be homeless or who have 
extremely or very low incomes is needed to strength-
en families and communities. 
SEC. 602. REPLACEMENT OF MORTGAGE INTEREST DEDUC-
TION WITH MORTGAGE INTEREST CREDIT. 
(a) NONREFUNDABLE CREDIT.—Subpart A of part 
IV of subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to nonrefundable personal credits) 
is amended by inserting after section 25D the following 
new section: 
‘‘SEC. 25E. INTEREST ON INDEBTEDNESS SECURED BY 
QUALIFIED RESIDENCE. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to 15 percent of the qualified residence interest paid 
or accrued during the taxable year. 
‘‘(b) QUALIFIED RESIDENCE INTEREST.—For pur-
poses of this section— 
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112 
‘‘(1) IN GENERAL.—The term ‘qualified resi-
dence interest’ means interest which is paid or ac-
crued during the taxable year on— 
‘‘(A) acquisition indebtedness with respect 
to any qualified residence of the taxpayer, or 
‘‘(B) home equity indebtedness with re-
spect to any qualified residence of the taxpayer. 
For purposes of the preceding sentence, the deter-
mination of whether any property is a qualified resi-
dence of the taxpayer shall be made as of the time 
the interest is accrued. 
‘‘(2) OVERALL
LIMITATION.—The aggregate 
amount of indebtedness taken into account for any 
period for purposes of this section shall not exceed 
$500,000 ($250,000 in the case of a married indi-
vidual filing a separate return). 
‘‘(3) ACQUISITION INDEBTEDNESS.—The term 
‘acquisition indebtedness’ means any indebtedness 
which— 
‘‘(A) is incurred in acquiring, constructing, 
or substantially improving any qualified resi-
dence of the taxpayer, and 
‘‘(B) is secured by such residence. 
Such term also includes any indebtedness secured by 
such residence resulting from the refinancing of in-
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113 
debtedness meeting the requirements of the pre-
ceding sentence (or this sentence), but only to the 
extent the amount of the indebtedness resulting 
from such refinancing does not exceed the amount of 
the refinanced indebtedness. 
‘‘(4) HOME EQUITY INDEBTEDNESS.— 
‘‘(A) IN GENERAL.—The term ‘home eq-
uity indebtedness’ means any indebtedness 
(other than acquisition indebtedness) secured 
by a qualified residence to the extent the aggre-
gate amount of such indebtedness does not ex-
ceed— 
‘‘(i) the fair market value of such 
qualified residence, reduced by 
‘‘(ii) the amount of acquisition indebt-
edness with respect to such residence. 
‘‘(B) LIMITATION.—The aggregate amount 
treated as home equity indebtedness for any pe-
riod shall not exceed $100,000 ($50,000 in the 
case of a married individual filing a separate re-
turn). 
‘‘(c) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) QUALIFIED RESIDENCE.—The term ‘quali-
fied residence’ means— 
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‘‘(A) the principal residence (within the 
meaning of section 121) of the taxpayer, and 
‘‘(B) 1 other residence of the taxpayer 
which is selected by the taxpayer for purposes 
of this subsection for the taxable year and 
which is used by the taxpayer as a residence 
(within the meaning of section 280A(d)(1)). 
‘‘(2) MARRIED INDIVIDUALS FILING SEPARATE 
RETURNS.—If a married couple does not file a joint 
return for the taxable year— 
‘‘(A) such couple shall be treated as 1 tax-
payer for purposes of paragraph (1), and 
‘‘(B) each individual shall be entitled to 
take into account 1 residence unless both indi-
viduals consent in writing to 1 individual taking 
into account the principal residence and 1 other 
residence. 
‘‘(3) RESIDENCE NOT RENTED.—For purposes 
of 
paragraph 
(1)(B), 
notwithstanding 
section 
280A(d)(1), if the taxpayer does not rent a dwelling 
unit at any time during a taxable year, such unit 
may be treated as a residence for such taxable year. 
‘‘(4) UNENFORCEABLE SECURITY INTERESTS.— 
Indebtedness shall not fail to be treated as secured 
by any property solely because, under any applicable 
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115 
State or local homestead or other debtor protection 
law in effect on August 16, 1986, the security inter-
est is ineffective or the enforceability of the security 
interest is restricted. 
‘‘(5) SPECIAL
RULES
FOR
ESTATES
AND 
TRUSTS.—For purposes of determining whether any 
interest paid or accrued by an estate or trust is 
qualified residence interest, any residence held by 
such estate or trust shall be treated as a qualified 
residence of such estate or trust if such estate or 
trust establishes that such residence is a qualified 
residence of a beneficiary who has a present interest 
in such estate or trust or an interest in the resid-
uary of such estate or trust. 
‘‘(d) COORDINATION WITH DEDUCTION.—In the case 
of any taxable year beginning in calendar years 2016 
through 2020, the taxpayer may elect to apply this section 
in lieu of the deduction under section 163 for qualified 
residence interest.’’. 
(b) PHASEOUT OF DEDUCTION.—Section 163(h) of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(6) PHASEOUT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
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116 
2015, the amount otherwise allowable as a de-
duction by reason of paragraph (2)(D) shall be 
the applicable percentage of such amount. 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the applicable 
percentage shall be determined in accordance 
with the following table: 
‘‘For taxable years beginning in calendar year: 
The applicable 
percentage is: 
2016 ............................................................................................
100%
2017 ............................................................................................
80%
2018 ............................................................................................
60%
2019 ............................................................................................
40%
2020 ............................................................................................
20%
2021 and thereafter ....................................................................
0%.’’. 
(c) PHASEDOWN OF MORTGAGE LIMIT.—Subpara-
graph (B) of section 163(h)(3) of such Code is amended 
by adding at the end the following: 
‘‘(iii) PHASEDOWN.— 
‘‘(I) IN GENERAL.—In the case 
of any taxable year beginning in cal-
endar years 2016 through 2020, 
clause (ii) shall be applied by sub-
stituting the amounts specified in the 
table in subclause (II) of this clause 
for ‘$1,000,000’ and ‘$500,000’, re-
spectively. 
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117 
‘‘(II) PHASEDOWN
AMOUNTS.— 
For purposes of subclause (I), the 
amounts specified in this subclause 
for a taxable year shall be the 
amounts specified in the following 
table: 
‘‘For taxable years beginning in calendar year: 
Amount 
substituted 
for 
$1,000,000: 
Amount 
substituted 
for 
$500,000: 
2016 ........................................................................
$1,000,000 
$500,000
2017 ........................................................................
$900,000 
$450,000
2018 ........................................................................
$800,000 
$400,000
2019 ........................................................................
$700,000 
$350,000
2020 ........................................................................
$600,000 
$300,000.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after section 25D 
the following new item: 
‘‘Sec. 25E. Interest on indebtedness secured by qualified residence.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to interest paid or 
accrued after December 31, 2015. 
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118 
SEC. 603. DEDUCTION ALLOWED FOR INTEREST AND TAXES 
RELATING TO LAND FOR DWELLING PUR-
POSES OWNED OR LEASED BY COOPERATIVE 
HOUSING CORPORATIONS. 
(a) IN GENERAL.—Subparagraph (B) of section 
216(b)(1) of the Internal Revenue Code of 1986 is amend-
ed by inserting ‘‘or land,’’ after ‘‘building,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to amounts paid or accrued after 
December 31, 2014. 
SEC. 604. USE OF MORTGAGE INTEREST SAVINGS TO IN-
CREASE LOW-INCOME HOUSING TAX CREDIT. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(h)(3)(C)(ii) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$1.75’’ and inserting ‘‘$2.70’’. 
(b) INFLATION ADJUSTMENT.—Subparagraph (H) of 
section 42(h)(3) of such Code is amended to read as fol-
lows: 
‘‘(H) COST-OF-LIVING ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of a 
calendar year after 2002, the $2,000,000 
amount in subparagraph (C) shall be in-
creased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
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119 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2001’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
‘‘(ii) PER
CAPITA
AMOUNT.—In the 
case of a calendar year after 2015, the 
$2.70 amount in subparagraph (C) shall 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2014’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
‘‘(iii) ROUNDING.— 
‘‘(I) 
In 
the 
case 
of 
the 
$2,000,000 
amount, 
any 
increase 
under clause (i) which is not a mul-
tiple of $5,000 shall be rounded to the 
next lowest multiple of $5,000. 
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120 
‘‘(II) In the case of the $2.70 
amount, any increase under clause (ii) 
which is not a multiple of 5 cents 
shall be rounded to the next lowest 
multiple of 5 cents.’’. 
(c) 
ELIGIBLE
BASIS.—Clause 
(i) 
of 
section 
42(d)(5)(B) of such Code is amended by striking ‘‘and’’ 
at the end of subclause (I), by striking the period at the 
end of subclause (II) and inserting ‘‘, and’’, and by adding 
at the end the following: 
‘‘(III) in the case of a building 
containing units which are designated 
to serve extremely low-income house-
holds by the State housing credit 
agency and require the increase in 
credit under this subparagraph in 
order for such building to be finan-
cially feasible as part of a qualified 
low-income housing project, the eligi-
ble basis of such building determined 
by the portion of such units shall be 
150 percent of such basis determined 
without 
regard 
to 
this 
subpara-
graph.’’. 
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121 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations made in calendar 
years beginning after December 31, 2014. 
SEC. 605. USE OF MORTGAGE INTEREST SAVINGS FOR AF-
FORDABLE HOUSING PROGRAMS. 
(a) USE OF SAVINGS.—For each year, the Secretary 
of the Treasury shall determine the amount of revenues 
accruing to the general fund of the Treasury by reason 
of the enactment of section 602 that remain after use of 
such revenues in accordance with section 604 and shall 
credit an amount equal to such remaining revenues as fol-
lows: 
(1) HOUSING
TRUST
FUND.—The Secretary 
shall credit the Housing Trust Fund established 
under section 1338 of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4568) with an amount equal to 60 per-
cent of the amount of such remaining revenues. 
(2) SECTION 8 RENTAL ASSISTANCE.—The Sec-
retary shall credit an amount equal to 30 percent of 
the amount of such remaining revenues to the Sec-
retary of Housing and Urban Development for use 
only for providing tenant- and project-based rental 
assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f). 
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122 
(3) PUBLIC
HOUSING
CAPITAL
FUND.—The 
Secretary shall credit an amount equal to 10 percent 
of the amount of such remaining revenues to the 
Public Housing Capital Fund under section 9(d) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437g(d)). 
(b) CHANGES TO HOUSING TRUST FUND.—Not later 
than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall revise the regula-
tions relating to the Housing Trust Fund established 
under section 1338 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568) to provide that such section is carried out with the 
maximum amount of flexibility possible while complying 
with such section, which shall include revising such regula-
tions— 
(1) to increase the limitation on amounts from 
the Fund that are available for use for operating as-
sistance for housing; 
(2) to allow public housing agencies and tribally 
designated housing entities to be recipient of grants 
amounts from the Fund that are allocated to a State 
or State designated entity; and 
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123 
(3) eliminate the applicability of rules for the 
Fund that are based on the HOME Investment 
Partnerships Act (42 U.S.C. 1721 et seq.). 
TITLE VII—LOW-INCOME HOUS-
ING TAX CREDIT FOR HOME-
LESS YOUTH 
SEC. 701. STUDENTS WHO WERE HOMELESS YOUTHS OR 
HOMELESS VETERANS PERMITTED TO OC-
CUPY LOW-INCOME HOUSING UNITS. 
(a) IN GENERAL.—Section 42(i)(3)(D)(i) of the In-
ternal Revenue Code of 1986 is amended by redesignating 
subclauses (II) and (III) as subclauses (IV) and (V) and 
inserting after subclause (I) the following new subclauses: 
‘‘(II) a student who was (prior to 
occupying such unit) a homeless child 
or youth (as defined in section 725 of 
the McKinney-Vento Homeless Assist-
ance Act), 
‘‘(III) a student who was (prior 
to occupying such unit) a homeless 
veteran (as defined in section 2002 of 
title 38, United States Code),’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made on or after 
the date of the enactment of this Act. 
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124 
TITLE VIII—RENTERS TAX 
CREDIT 
SEC. 801. RENTERS TAX CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. RENTERS CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of a qualified credit recipient, the renters credit 
for any taxable year is an amount equal to the sum of 
the renters credit amounts allocated to such qualified 
credit recipient under this section for months ending dur-
ing the taxable year. 
‘‘(b) RENTERS CREDIT AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘renters credit amount’ means the 
rent reduction amount with respect to each rental 
unit which is occupied by a qualified renter. 
‘‘(2) QUALIFIED
RENTER.—For purposes of 
this section, the term ‘qualified renter’ means a fam-
ily unit with income not greater than the higher of— 
‘‘(A) 60 percent of local median income, or 
‘‘(B) 150 percent of the Federal poverty 
line, 
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125 
in each case as determined by the Secretary of 
Housing and Urban Development for a family of the 
size involved. 
‘‘(3) RENT
REDUCTION
AMOUNT.—For pur-
poses of this section— 
‘‘(A) IN GENERAL.—The term ‘rent reduc-
tion amount’ is the amount by which the fair 
market rent for the unit involved exceeds the 
rent charged to the qualified renter. 
‘‘(B) LIMITATION.—The rent reduction 
amount taken into account under this section 
shall not exceed the excess of— 
‘‘(i) the rent charged to the qualified 
renter (or, if lower, specified modest rent), 
over 
‘‘(ii) 30 percent of the qualified rent-
ers income (prorated monthly) as deter-
mined by the renters credit agency of the 
State. 
‘‘(C) 
SPECIFIED
MODEST
RENT.—The 
term ‘specified modest rent’ means— 
‘‘(i) the Fair Market Rent determined 
by the Secretary of Housing and Urban 
Development for the ZIP code (if the unit 
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126 
is located in a metropolitan area) or non- 
metropolitan county, or 
‘‘(ii) such amount as may be deter-
mined by the State with respect to the 
area in which the unit is located if such 
amount is within 25 percent of the amount 
determined under clause (i) with respect to 
such unit. 
‘‘(D) UTILITIES.—The renters credit agen-
cy of the State may determine whether and how 
to take into account the cost of utilities in de-
termining the rent reduction amount. 
‘‘(E) CREDIT ADJUSTMENT.—The renters 
credit agency of the State may elect to increase 
the rent reduction amount such that such 
amount does not exceed 110 percent of such 
amount as determined without regard to this 
subparagraph. 
‘‘(c) QUALIFIED CREDIT RECIPIENT.—For purposes 
of this section, the term ‘qualified credit recipient’ means, 
with respect to any rental unit occupied by a qualified 
renter, the owner of such unit but only to the extent of 
the renters credit amounts which have been allocated to 
such person by the renters credit agency. In lieu of the 
owner of the unit, the renters credit agency may treat the 
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127 
lender of any loan to such owner as the qualified credit 
recipient if such unit secures such loan. 
‘‘(d) ALLOCATIONS BY RENTERS CREDIT AGENCY TO 
CREDIT RECIPIENTS.— 
‘‘(1) IN GENERAL.—The renters credit agency 
may make allocations of renters credit amounts to 
qualified credit recipients under this section on the 
basis of— 
‘‘(A) the identity of the qualified renter, 
such that the renters credit amount is allowed 
to the owner of any rental unit which such 
qualified renter occupies (or the lender referred 
to in subsection (c)) for any month, or 
‘‘(B) one or more rental units, such that 
the renters credit amount is allowed to the 
owner of such units (or the lender referred to 
in subsection (c)) for such months as such units 
are occupied by a qualified renter. 
‘‘(2) RESTRICTIONS ON UNIT BASED ALLOCA-
TIONS.—A renters credit agency may make alloca-
tions of renters credit as described in paragraph 
(1)(B) only if— 
‘‘(A) such units are part of a project or 
building in which not more than 40 percent of 
the units receive allocations under this section 
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128 
(the Secretary may provide such exceptions to 
the requirement of this subparagraph as the 
Secretary determines appropriate for small 
buildings or buildings with respect to which 
more than 40 percent of the units were pre-
viously subsidized under other Federal pro-
grams), and 
‘‘(B) the Secretary has approved a mobility 
plan submitted by such renters credit agency 
which provides for an adequate method to en-
sure that qualified renters have the ability to 
move from a unit which is eligible for credit 
under this section without losing the rent sub-
sidy provided by this section. 
‘‘(e) ALLOCATIONS
OF
CREDIT
AUTHORITY
TO 
STATE AGENCIES.— 
‘‘(1) RENTERS CREDIT DOLLAR AMOUNT FOR 
AGENCIES.— 
‘‘(A) STATE LIMITATION.—The aggregate 
credit amounts which a renters credit agency 
may allocate for any calendar year is the por-
tion of the State renters credit ceiling allocated 
under this paragraph for such calendar year to 
such agency. 
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129 
‘‘(B) STATE
CEILING
INITIALLY
ALLO-
CATED
TO
STATE
HOUSING
CREDIT
AGEN-
CIES.—Except as provided in subparagraphs 
(D) and (E), the State renters credit ceiling for 
each calendar year shall be allocated to the 
renters credit agency of such State. If there is 
more than 1 renters credit agency of a State, 
all such agencies shall be treated as a single 
agency. 
‘‘(C) STATE RENTERS CREDIT CEILING.— 
The State renters credit ceiling applicable to 
any State and any calendar year shall be an 
amount equal to the sum of— 
‘‘(i) the unused State renters credit 
ceiling (if any) of such State for the pre-
ceding calendar year, 
‘‘(ii) the greater of— 
‘‘(I) $17.50 multiplied by the 
State population, or 
‘‘(II) $20,000,000, 
‘‘(iii) the amount of State renters 
credit ceiling returned in the calendar year, 
plus 
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131 
‘‘(II) the aggregate renters credit 
dollar amount allocated for such year. 
‘‘(iii) FORMULA FOR ALLOCATION OF 
UNUSED
HOUSING
CREDIT
CARRYOVERS 
AMONG QUALIFIED STATES.—The amount 
allocated under this subparagraph to a 
qualified State for any calendar year shall 
be the amount determined by the Secretary 
to bear the same ratio to the aggregate un-
used renters credit carryovers of all States 
for the preceding calendar year as such 
State’s population for the calendar year 
bears to the population of all qualified 
States for the calendar year. For purposes 
of the preceding sentence, population shall 
be determined in accordance with section 
146(j). 
‘‘(iv) QUALIFIED
STATE.—For pur-
poses of this subparagraph, the term 
‘qualified State’ means, with respect to a 
calendar year, any State— 
‘‘(I) which allocated its entire 
State renters credit ceiling for the 
preceding calendar year, and 
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132 
‘‘(II) for which a request is made 
(not later than May 1 of the calendar 
year) to receive an allocation under 
clause (iii). 
‘‘(E) APPLICATION OF CERTAIN RULES.— 
For purposes of this paragraph, rules similar to 
the rules of subparagraphs (E), (F), and (G) of 
section 42(h)(3) shall apply. 
‘‘(F) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of a 
calendar year after 2015, the $20,000,000 
and $17.50 amounts in subparagraph (C) 
shall each be increased by an amount equal 
to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2001’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
‘‘(ii) ROUNDING.— 
‘‘(I) 
In 
the 
case 
of 
the 
$20,000,000 amount, any increase 
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133 
under clause (i) which is not a mul-
tiple of $50,000 shall be rounded to 
the next lowest multiple of $50,000. 
‘‘(II) In the case of the $17.50 
amount, any increase under clause (i) 
which is not a multiple of 50 cents 
shall be rounded to the next lowest 
multiple of 50 cents. 
‘‘(f) OTHER DEFINITIONS.—For purposes of this sec-
tion— 
‘‘(1) RENTERS
CREDIT
AGENCY.—The term 
‘renters credit agency’ means, with respect to any 
State, the housing credit agency of such State (as 
defined in section 42(h)(8)(A)) or such other agency 
as is authorized to carry out the activities of the 
renters credit agency under this section. 
‘‘(2) POSSESSIONS TREATED AS STATES.—The 
term ‘State’ includes a possession of the United 
States. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.— 
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134 
(1) IN GENERAL.—Subsection (b) of section 38 
of such Code is amended by striking ‘‘plus’’ at the 
end of paragraph (35), by striking the period at the 
end of paragraph (36) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(37) the renters credit determined under sec-
tion 45S(a).’’. 
(2) CREDIT ALLOWABLE AGAINST ALTERNATIVE 
MINIMUM
TAX.—Subparagraph 
(B) 
of 
section 
38(c)(4) of such Code is amended by redesignating 
clauses (vii) through (ix) as clauses (viii) through 
(x), respectively, and by inserting after clause (vi) 
the following new clause: 
‘‘(vii) the credit determined under sec-
tion 45S,’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45S. Renters credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations made for calendar 
years after 2014 and to taxable years ending after Decem-
ber 31, 2014. 
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135 
DIVISION C—NUTRITION 
TITLE 
IX—IMPROVING 
TEM-
PORARY 
ASSISTANCE 
TO 
NEEDY FAMILIES PROGRAM 
SEC. 901. REFERENCES. 
Except as otherwise expressly provided in this title, 
wherever in this title an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or 
other provision, the amendment or repeal shall be consid-
ered to be made to a section or other provision of the So-
cial Security Act. 
SEC. 902. STATE PLANS REQUIRED TO ADDRESS WHETHER 
AND HOW STATES WILL PROVIDE ASSIST-
ANCE TO NEEDIEST GEOGRAPHIC AREAS. 
Section 402(a)(1)(A)(i) (42 U.S.C. 602(a)(1)(A)(i)) 
is amended by inserting ‘‘, including whether and how the 
State will give priority to providing benefits and services 
in areas of the State with the greatest need (such as areas 
with the greatest unemployment rates, the greatest pov-
erty rates, and the least job opportunity to population ra-
tios)’’ before the period. 
SEC. 903. FUNDING OF THE TANF PROGRAM. 
(a) STATE FAMILY ASSISTANCE GRANT.— 
(1) 
IN
GENERAL.—Section 
403(a)(1) 
(42 
U.S.C. 603(a)(1)) is amended— 
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136 
(A) in subparagraph (A), by striking ‘‘fis-
cal year 2012’’ and inserting ‘‘fiscal year 2013 
and each succeeding fiscal year’’; and 
(B) by striking subparagraphs (B) and (C) 
and inserting the following: 
‘‘(B) 
STATE
FAMILY
ASSISTANCE 
GRANT.— 
‘‘(i) IN GENERAL.—The State family 
assistance grant payable to a State for a 
fiscal year shall be the greater of— 
‘‘(I) the adjusted basic block 
grant, plus the amount required to be 
paid to the State under paragraph (3) 
(as in effect on September 30, 2010) 
for fiscal year 2010; or 
‘‘(II) the amount required to be 
paid to the State under this para-
graph for the preceding fiscal year. 
‘‘(ii) 
ADJUSTED
BASIC
BLOCK 
GRANT.—In clause (i), the term ‘adjusted 
block grant’ means, with respect to a 
State, the product of— 
‘‘(I) the amount required to be 
paid to the State under this para-
graph for fiscal year 2010 (deter-
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137 
mined without regard to any reduction 
pursuant to section 409 or 412(a)(1)); 
‘‘(II) 1.00, plus the percentage 
(if any) by which the average of the 
CPI for the 12-month period ending 
with June of the preceding fiscal year 
exceeds the average of the CPI for the 
12-month period ending with June 
1996, expressed as a decimal; and 
‘‘(III) 1.00, plus the percentage 
(if any) by which the most recent esti-
mate by the Bureau of the Census of 
the population of the State that has 
not attained 18 years of age exceeds 
the most recent estimate by the Bu-
reau of the Census of that population 
as of July 1, 1996, expressed as a 
decimal. 
‘‘(iii) CPI DEFINED.—In clause (ii), 
the term ‘CPI’ means the last Consumer 
Price Index for All Urban Consumers pub-
lished by the Department of Labor for the 
period involved. 
‘‘(C) APPROPRIATION.—Out of any money 
in the Treasury of the United States not other-
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138 
wise appropriated, there are appropriated such 
sums as are necessary for grants under this 
paragraph for each fiscal year.’’. 
(2) CONFORMING AMENDMENT TO ELIMINATE 
SUPPLEMENTAL
GRANTS
FOR
POPULATION
IN-
CREASES IN CERTAIN STATES.—Section 403(a) (42 
U.S.C. 603(a)) is amended by striking paragraph 
(3). 
(b) PENALTY FOR FAILURE TO MAINTAIN EFFORT 
ADJUSTED
FOR
INFLATION.—Section 409(a)(7) (42 
U.S.C. 609(a)(7)) is amended— 
(1) in subparagraph (A), by inserting ‘‘the in-
flation-adjusted’’ before ‘‘historic State expendi-
tures’’; and 
(2) in subparagraph (B), by redesignating 
clauses (iii) through (v) as clauses (iv) through (vi), 
respectively, and inserting after clause (ii) the fol-
lowing: 
‘‘(iii) INFLATION-ADJUSTED HISTORIC 
STATE EXPENDITURES.—The term ‘infla-
tion-adjusted historic State expenditures’ 
means, with respect to a fiscal year— 
‘‘(I) historic State expenditures; 
multiplied by 
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139 
‘‘(II) 1.00, plus (in the case of 
fiscal year 2015 or any succeeding fis-
cal year) the percentage (if any) by 
which the average of the CPI (as de-
fined in section 403(a)(1)(B)(iii)) for 
the 12-month period ending with June 
of the preceding fiscal year exceeds 
the average of the CPI (as so defined) 
for the 12-month period ending with 
June 2013, expressed as a decimal.’’. 
(c) MODIFICATION OF CONTINGENCY FUND.— 
(1) IN GENERAL.—Section 403(b) (42 U.S.C. 
603(b)) is amended by striking all that follows para-
graph (1) and inserting the following: 
‘‘(2) GRANTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make a grant to each eligible State and each 
Indian tribe that is an economically needy enti-
ty for a calendar quarter, in an amount equal 
to 80 percent of the amount (if any) by which 
the total amount of relevant expenditures of the 
entity for the quarter exceeds the total amount 
of the relevant expenditures of the entity for 
the corresponding quarter in the base year of 
the entity, subject to paragraph (2). 
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140 
‘‘(B) LIMITATION.—The total amount pay-
able to an entity under this subsection for a fis-
cal year shall not exceed an amount equal to 25 
percent of the amount payable to the entity— 
‘‘(i) if the entity is a State, under sec-
tion 403(a)(1) for the fiscal year; or 
‘‘(ii) if the entity is an Indian tribe, 
under section 412(a)(1) for the fiscal year. 
‘‘(3) DEFINITIONS.—In paragraph (2): 
‘‘(A) ECONOMICALLY
NEEDY
ENTITY.— 
The term ‘economically needy entity’ means an 
entity with respect to a calendar quarter— 
‘‘(i) if the seasonally adjusted average 
unemployment rate with respect to entity 
for the quarter or any of the preceding 4 
calendar quarters exceeds 6.5 percent; or 
‘‘(ii) in the case that the unemploy-
ment rate information described in clause 
(i) is not available with respect to the enti-
ty, if the entity meets such qualifications 
as the Secretary, in consultation with the 
Secretary of Labor, shall, by regulation, 
prescribe. 
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141 
‘‘(B) BASE YEAR.—The term ‘base year’ 
means, with respect to an entity, and a cal-
endar quarter in a fiscal year— 
‘‘(i) except as provided in clause (ii), 
whichever of the 2 fiscal years most re-
cently preceding the first fiscal year of the 
most recent contingency fund eligibility pe-
riod for the entity, is the fiscal year in 
which the relevant expenditures of the enti-
ty were the lesser; or 
‘‘(ii) if the first year of the period re-
ferred to in clause (i) is fiscal year 2015, 
whichever of fiscal year 2007 or 2008 is 
the fiscal year in which the relevant ex-
penditures of the entity were the lesser. 
‘‘(C) CONTINGENCY FUND ELIGIBILITY PE-
RIOD.—The term ‘contingency fund eligibility 
period’ means, with respect to an entity, a pe-
riod of 1 or more consecutive calendar quarters 
for which the entity is an economically needy 
entity. 
‘‘(D) RELEVANT EXPENDITURES.— 
‘‘(i) IN GENERAL.—The term ‘relevant 
expenditures’ means expenditures— 
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142 
‘‘(I) for assistance under the pro-
gram funded under this part of the 
entity (including, in the case of a 
State, any qualified State expendi-
tures 
(as 
defined 
in 
section 
409(a)(7)(B)(i)) and any expenditures 
under any other State program fund-
ed by such expenditures); 
‘‘(II) for child care; 
‘‘(III) for subsidized employment 
under the program funded under this 
part of the entity (including, in the 
case of a State, such expenditures 
under any other State program fund-
ed by qualified State expenditures (as 
defined in section 409(a)(7)(B)(i))), 
other than expenditures made using 
Federal funds or with respect to 
which the entity received a grant 
made under paragraph (3) of this 
subsection; and 
‘‘(IV) for administrative costs as-
sociated with making the expenditures 
referred to in the preceding sub-
clauses of this clause. 
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143 
‘‘(ii) CHILD CARE EXPENDITURES.— 
For purposes of clause (i), expenditures for 
child care consist of the following: 
‘‘(I) Amounts transferred under 
section 404(d)(1)(B). 
‘‘(II) Expenditures for child care 
assistance from Federal funds pro-
vided under this part. 
‘‘(III) In the case of an entity 
that is a State, expenditures for child 
care assistance that are qualified 
State expenditures (as defined in sec-
tion 409(a)(7)(B)(i)), but only to the 
extent exceeding the total expendi-
tures of the State (other than from 
Federal funds) for child care in fiscal 
year 1994 or 1995 (whichever is the 
greater). 
‘‘(iii) AUTHORITY
TO
COLLECT
AND 
ADJUST
DATA.—In 
determining 
the 
amount of the expenditures of a State for 
basic assistance, child care, and subsidized 
employment, during any period for which 
the State requests funds under this sub-
section, and during the base year of the 
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144 
State, the Secretary may make appropriate 
adjustments to the data, on a State-by- 
State basis, to ensure that the data are 
comparable with respect to the groups of 
families served and the types of aid pro-
vided. The Secretary may develop a mecha-
nism for collecting expenditure data, in-
cluding procedures which allow States to 
make reasonable estimates, and may set 
deadlines for making revisions to the data. 
‘‘(4) USE OF GRANT.—Each State to which a 
grant is made under this subsection shall use the 
grant to serve areas of the State with the greatest 
need (as referred to in section 402(a)(1)(A)). 
‘‘(5) APPROPRIATION.— 
‘‘(A) IN GENERAL.—Out of any funds in 
the Treasury of the United States not otherwise 
appropriated, there are appropriated for pay-
ment to the Fund— 
‘‘(i) $2,500,000,000 for fiscal year 
2015; and 
‘‘(ii) for each succeeding fiscal year, 
the amount appropriated under this para-
graph for the then preceding fiscal year, 
increased by the percentage (if any) by 
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145 
which the amount appropriated under sec-
tion 403(a)(1) for the fiscal year involved 
exceeds the amount appropriated under 
such section for the then preceding fiscal 
year. 
‘‘(B) 
AVAILABILITY.—Amounts 
made 
available under this paragraph for a fiscal year 
shall remain available until expended. 
‘‘(6) ACTIONS TO BE TAKEN IN ANTICIPATION 
OF
EXHAUSTION
OF
FUND.—The Secretary shall 
monitor the amount in, and the rate at which 
amounts are paid from, the Fund, and if the Sec-
retary determines that the Fund will be exhausted 
within 6 months, the Secretary shall— 
‘‘(A) notify the Congress of the determina-
tion; and 
‘‘(B) develop and communicate to each 
State and Indian tribe that is an economically 
needy entity as of the date of the determina-
tion, the procedure for allocating amounts in 
the Fund among such entities.’’. 
(2) ELIMINATION OF PENALTY FOR FAILURE 
OF STATE RECEIVING AMOUNTS FROM CONTINGENCY 
FUND TO MAINTAIN 100 PERCENT OF HISTORIC EF-
FORT.— 
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146 
(A) IN
GENERAL.—Section 409(a) (42 
U.S.C. 609(a)) is amended by striking para-
graph (10) and redesignating paragraphs (11) 
through (16) as paragraphs (10) through (15), 
respectively. 
(B) CONFORMING AMENDMENTS.—Section 
409 (42 U.S.C. 609) is amended in each of sub-
sections (b)(2) and (c)(4), by striking ‘‘(10), 
(12), or (13)’’ and inserting ‘‘(11), or (12)’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) is amended 
by striking ‘‘needy State (as defined in section 
403(b)(6))’’ and inserting ‘‘economically needy enti-
ty (as defined in section 403(b)(3)(A))’’. 
(4) AMOUNTS
PROVIDED
TO
TERRITORIES 
FROM
THE
CONTINGENCY
FUND
TO
BE
DIS-
REGARDED FOR PURPOSES OF LIMITATION ON PAY-
MENTS TO THE TERRITORIES.—Section 1108(a)(2) 
(42 U.S.C. 1308(a)(2)) is amended by inserting 
‘‘403(b),’’ before ‘‘406,’’. 
(d) MATCHING GRANTS FOR SUBSIDIZED EMPLOY-
MENT.— 
(1) IN GENERAL.—Section 403(a) (42 U.S.C. 
603(a)), as amended by subsection (a)(2) of this sec-
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147 
tion, is further amended by inserting after para-
graph (2) the following: 
‘‘(3) MATCHING GRANTS FOR SUBSIDIZED EM-
PLOYMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make a grant— 
‘‘(i) to each eligible State that is 1 of 
the 50 States or the District of Columbia, 
for each fiscal year for which the State is 
an MOE State; and 
‘‘(ii) to each State that is not 1 of the 
50 States or the District of Columbia, and 
to each Indian tribe, for each fiscal year 
for which the State or tribe, as the case 
may be, meets such terms and conditions 
as the Secretary shall, by regulation, estab-
lish, which shall be comparable to the 
terms and conditions under which grants 
are made under clause (i). 
‘‘(B) MOE STATE.—In subparagraph (A), 
the term ‘MOE State’ means a State if the 
qualified expenditures of the State (as defined 
in section 409(a)(7)(B)(i)) for the fiscal year 
exceeds the applicable percentage (as defined in 
clause (ii) of such section) of inflation-adjusted 
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148 
historic State expenditures (as defined in clause 
(iii) of such section) of the State with respect 
to the fiscal year. 
‘‘(C) AMOUNT OF GRANT.— 
‘‘(i) STATES.— 
‘‘(I) IN GENERAL.—The grant to 
be made to a State under subpara-
graph (A)(i) for a fiscal year shall be 
in an amount equal to 50 percent of 
the excess expenditures of the State 
for subsidized employment during the 
fiscal year. 
‘‘(II) EXCESS EXPENDITURES OF 
THE STATE FOR SUBSIDIZED EMPLOY-
MENT.—The term ‘excess expendi-
tures of the State for subsidized em-
ployment’ means, with respect to a 
fiscal year, the lesser of— 
‘‘(aa) the excess described in 
subparagraph (B) with respect to 
the State for the fiscal year; or 
‘‘(bb) an amount equal to 
the total expenditures of the 
State for subsidized employment 
funded under this part or under 
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149 
any other State program funded 
by qualified State expenditures 
(as 
defined 
in 
section 
409(a)(7)(B)(i)), excluding those 
with respect to which a grant is 
made to the State under sub-
section (b) of this section, during 
the fiscal year. 
‘‘(ii) INDIAN TRIBES.—The grant to 
be made to an Indian tribe under this 
paragraph shall be in such amount as the 
Secretary deems appropriate. 
‘‘(D) USE
OF
GRANT.—Notwithstanding 
section 404, a State or Indian tribe to which a 
grant is made under this paragraph shall use 
the grant solely to finance subsidized employ-
ment activities, and to serve areas of the State 
with the greatest need (as referred to in section 
402(a)(1)(A)). 
‘‘(E) APPROPRIATION.—Out of any funds 
in the Treasury of the United States not other-
wise appropriated, there are appropriated such 
sums as are necessary for grants under this 
paragraph for each fiscal year.’’. 
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150 
(2) AMOUNTS
PROVIDED
TO
TERRITORIES 
FROM THE MATCHING GRANT TO BE DISREGARDED 
FOR PURPOSES OF LIMITATION ON PAYMENTS TO 
THE TERRITORIES.—Section 1108(a)(2) (42 U.S.C. 
1308(a)(2)) is amended by inserting ‘‘403(a)(3),’’ 
after ‘‘403(a)(2),’’. 
(3) DATA REPORTS REQUIRED WITH RESPECT 
TO FAMILIES THAT INCLUDE AN INDIVIDUAL PAR-
TICIPATING
IN
SUBSIDIZED
EMPLOYMENT
PRO-
GRAMS.—Section 
411(a)(1)(A) 
(42 
U.S.C. 
611(a)(1)(A)) is amended, in the matter before 
clause (i), by inserting ‘‘, and families that include 
an individual participating in subsidized employment 
funded with Federal funds or qualified State expend-
itures (as so defined)’’ before the colon. 
(e) TRIBAL FAMILY ASSISTANCE GRANTS.—Section 
412(a)(1) (42 U.S.C. 612(a)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘fiscal 
year 2012’’ and inserting ‘‘each fiscal year’’; and 
(2) in subparagraph (B)— 
(A) by redesignating clause (ii) as clause 
(iii); and 
(B) by striking clause (i) and inserting the 
following: 
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‘‘(i) IN GENERAL.—The amount de-
termined under this subparagraph for a 
fiscal year is an amount equal to the sum 
of the adjusted historic expenditures for 
the fiscal year with respect to each State 
in which a service area of the Indian tribe 
is located. 
‘‘(ii) ADJUSTED
HISTORIC
EXPENDI-
TURES DEFINED.—In clause (i), the term 
‘adjusted historic expenditures’ means, 
with respect to a fiscal year, a State, and 
an Indian tribe, the total amount of the 
Federal payments to the State under sec-
tion 403 (as then in effect) for fiscal year 
1994 attributable to expenditures (other 
than child care expenditures) by the State 
under parts A and F (as so in effect) for 
fiscal year 1994 for Indian families resid-
ing in the service areas identified by the 
tribe pursuant to subsection (b)(1)(C) of 
this section that are in the State, increased 
by the percentage (if any) by which the 
amount of the grant payable under section 
403(a)(1) for the fiscal year to the State 
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152 
exceeds the amount of the grant so payable 
to the State for fiscal year 2010.’’. 
(f) CENSUS
BUREAU
STUDY.—Section 414 (42 
U.S.C. 614) is amended— 
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) IN GENERAL.—The Director of the Bureau of 
the Census shall conduct a study to assess the effects of 
policies and programs related to low-income families, in-
cluding policies and programs under State programs fund-
ed under this part or funded with qualified State expendi-
tures (as defined in section 409(a)(7)(B)(i)), including 
changes and policies in such programs made pursuant to 
the Rewriting to Improve and Secure an Exit Out of Pov-
erty Act. The Director shall design the study in consulta-
tion with the Secretary. Every 5 years, the Director shall, 
in consultation with the Secretary, revise the content and 
nature of the study to reflect emerging policy issues re-
lated to low-income families.’’; and 
(2) in subsection (b), by striking ‘‘fiscal year 
2012’’ and inserting ‘‘each fiscal year’’. 
(g) FUNDING OF STUDIES AND EVALUATIONS.—Sec-
tion 413(h)(1) (42 U.S.C. 613(h)(1)) is amended by strik-
ing ‘‘fiscal year 2012’’ and inserting ‘‘each fiscal year’’. 
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153 
(h) MATCHING
GRANTS
TO
CERTAIN
TERRI-
TORIES.—Section 1108 (42 U.S.C. 1308) is amended— 
(1) in subsection (a)(2), by inserting ‘‘section 
403(a)(1) (to the extent exceeding the amount re-
quired to be so paid to the territory for fiscal year 
2011),’’ before ‘‘403(a)(2)’’; and 
(2) in subsection (b)(2), by striking ‘‘fiscal year 
2012’’ and inserting ‘‘each fiscal year’’. 
SEC. 904. WORK REQUIREMENTS. 
(a) PARTICIPATION RATE REQUIREMENT.—Section 
407 (42 U.S.C. 607) is amended by striking subsections 
(a) and (b) and inserting the following: 
‘‘(a) PARTICIPATION RATE REQUIREMENT.— 
‘‘(1) IN GENERAL.—A State to which a grant 
is made under section 403 for a fiscal year shall 
achieve a minimum participation rate of 50 percent 
with respect to all families residing in the State that 
include a work-eligible individual. 
‘‘(2) WORK-ELIGIBLE INDIVIDUAL DEFINED.— 
‘‘(A) IN GENERAL.—In subsection (a), the 
term ‘work-eligible individual’, subject to sub-
paragraphs (B) and (C), means— 
‘‘(i) an adult recipient of assistance 
under the State program funded under this 
part or under any other State program 
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154 
funded by qualified State expenditures (as 
defined in section 409(a)(7)(B)(i)); 
‘‘(ii) a former recipient of such assist-
ance who is— 
‘‘(I) a parent of a dependent 
child who is such a recipient; and 
‘‘(II) no longer eligible for assist-
ance under the State program funded 
under this part by reason of section 
408(a)(7); and 
‘‘(iii) a participant in a subsidized em-
ployment program funded under this part 
or under any other State program funded 
by qualified State expenditures (as defined 
in section 409(a)(7)(B)(i)). 
‘‘(B) EXCLUSION OF INDIVIDUALS SANC-
TIONED
OR
UNDERGOING
PRE-SANCTION
RE-
VIEW.—The term ‘work-eligible individual’ does 
not include any individual with respect to 
whom— 
‘‘(i) there is in effect a penalty im-
posed by the State under subsection (e) of 
this section; or 
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155 
‘‘(ii) the State has initiated (but not 
completed) the pre-sanction review process 
pursuant to section 408(a)(14)(A). 
‘‘(C) STATE OPTION TO EXCLUDE CERTAIN 
INDIVIDUALS.—A State may exclude from the 
term ‘work-eligible individual’ any resident of 
the State who is— 
‘‘(i) a single parent caring for a child 
who has not attained 1 year of age; 
‘‘(ii) a recipient of supplemental secu-
rity income benefits under title XVI, dis-
ability insurance benefits under title II, or 
other Federal or State benefits based on 
disability; 
‘‘(iii) an applicant for supplemental 
security income benefits under title XVI; 
‘‘(iv) an individual who is needed in 
the home of the individual to care for a 
disabled member of the family of the indi-
vidual; or 
‘‘(v) an individual who (but for the ex-
ercise of the State option under this 
clause) would be a work-eligible individual 
under a tribal family assistance plan ap-
proved under section 412 or under a tribal 
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156 
work program to which funds are provided 
under this part. 
‘‘(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
RATE.—For 
purposes of paragraph (1), the participation rate of 
a State for a month, expressed as a percentage, is— 
‘‘(A) the number of families residing in the 
State that include a work-eligible individual who 
is engaged in work for the month; divided by 
‘‘(B) the number of families residing in the 
State that include a work-eligible individual.’’. 
(b) 
PARTICIPATION
REQUIREMENTS.—Section 
407(c) (42 U.S.C. 607(c)) is amended to read as follows: 
‘‘(c) ENGAGED
IN WORK.—For purposes of sub-
section (b): 
‘‘(1) GENERAL
RULE.—An individual is en-
gaged in work for a month in a fiscal year if the re-
cipient is participating in work activities for an aver-
age of at least 20 hours per week during the month. 
‘‘(2) INDIVIDUALS COMPLYING WITH A MODI-
FIED
EMPLOYABILITY
PLAN
DEEMED
TO
BE
EN-
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157 
GAGED IN WORK.—An individual is deemed to be en-
gaged in work for a month if the State determines 
that the individual is in substantial compliance with 
the activities and hourly participation requirements 
of a modified employability plan developed for the 
individual in accordance with section 408(h). 
‘‘(3) SINGLE TEEN HEAD OF HOUSEHOLD OR 
MARRIED
TEEN
WHO
MAINTAINS
SATISFACTORY 
SCHOOL ATTENDANCE DEEMED TO BE ENGAGED IN 
WORK.—An individual who is married or a head of 
household and has not attained 20 years of age is 
deemed to be engaged in work for a month if the re-
cipient maintains satisfactory attendance at sec-
ondary school or the equivalent during the month.’’. 
(c) ELIMINATION OF 12-MONTH LIMIT ON COUNTING 
VOCATIONAL EDUCATIONAL TRAINING AS A WORK ACTIV-
ITY.—Section 407(d)(8) (42 U.S.C. 607(d)(8)) is amend-
ed by striking ‘‘(not to exceed 12 months with respect to 
any individual)’’. 
SEC. 905. WORK RULES. 
(a) OPTION OF RECIPIENT TO HAVE TRAINED PER-
SONNEL ASSESS CERTAIN BARRIERS TO EMPLOYMENT; 
ADDITIONAL MATTERS REQUIRED TO BE ASSESSED.— 
Section 408(b)(1) (42 U.S.C. 608(b)(1)) is amended— 
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158 
(1) by inserting ‘‘(which, at the option of the 
recipient, shall be conducted by trained personnel 
with respect to barriers to employment specified by 
the recipient)’’ after ‘‘assessment’’; and 
(2) by striking ‘‘and employability’’ and insert-
ing ‘‘employability, physical and mental impair-
ments, English proficiency, child care needs, and 
whether the recipient is a victim of domestic or sex-
ual violence,’’. 
(b) INDIVIDUAL RESPONSIBILITY PLANS.— 
(1) PLANS
REQUIRED; PLANS
TO
INCLUDE 
WELL-BEING
PLANS
FOR
CHILDREN.—Section 
408(b)(2)(A) (42 U.S.C. 608(b)(2)(A)) is amend-
ed— 
(A) in the matter preceding clause (i), by 
striking ‘‘may’’ and inserting ‘‘shall’’; 
(B) in clause (iv)— 
(i) by inserting ‘‘, supports,’’ after 
‘‘counseling’’; and 
(ii) by striking ‘‘and’’ at the end; 
(C) in clause (v), by striking the period 
and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(vi) describe a well-being plan for 
each child in the family.’’. 
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159 
(2) DEADLINE FOR COMPLETION OF PLAN.— 
Section 408(b)(2)(B) (42 U.S.C. 608(b)(2)(B)) is 
amended by striking ‘‘individual—’’ and all that fol-
lows and inserting ‘‘individual within 90 days after 
the individual is determined eligible for the assist-
ance.’’. 
(3) SANCTION FOR FAILURE OF STATE TO DE-
VELOP PLAN.—Section 409(a) (42 U.S.C. 609(a)), 
as amended by section 903(c)(2)(A) of this title, is 
amended by adding at the end the following: 
‘‘(16) PENALTY FOR FAILURE OF STATE TO DE-
VELOP
REQUIRED
INDIVIDUAL
RESPONSIBILITY 
PLAN.— 
‘‘(A) IN GENERAL.—If the Secretary deter-
mines that a State to which a grant is made 
under section 403 in a fiscal year has violated 
section 408(b)(2) during the fiscal year, the 
Secretary shall reduce the grant payable to the 
State under section 403(a)(1) for the imme-
diately succeeding fiscal year by an amount 
equal to not more than 5 percent of the State 
family assistance grant. 
‘‘(B) PENALTY
BASED
ON
SEVERITY
OF 
FAILURE.—The Secretary shall impose reduc-
tions under subparagraph (A) with respect to a 
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160 
fiscal year based on the degree of noncompli-
ance.’’. 
(4) 
CONFORMING
AMENDMENT.—Section 
408(b) (42 U.S.C. 608(b)) is amended by striking 
paragraph (4). 
(c) MODIFIED EMPLOYABILITY PLANS FOR CERTAIN 
INDIVIDUALS
WITH
DISABILITIES.—Section 408 (42 
U.S.C. 608) is amended by adding at the end the fol-
lowing: 
‘‘(h) AUTHORITY TO DEVELOP MODIFIED EMPLOY-
ABILITY PLAN FOR A RECIPIENT OF ASSISTANCE WITH, 
OR CARING
FOR
A FAMILY MEMBER WITH, A DIS-
ABILITY.— 
‘‘(1) IN
GENERAL.—A State may develop a 
modified employability plan for a recipient of assist-
ance under the State program funded under this 
part— 
‘‘(A) who— 
‘‘(i) is a work-eligible individual (as 
defined in section 407(a)(2)); and 
‘‘(ii) has been determined by a quali-
fied medical, mental health, addiction, or 
social services professional (as determined 
by the State) to have a disability; or 
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161 
‘‘(B) who is caring for a family member 
with a disability (as so determined). 
‘‘(2) CONTENTS OF PLAN.—The modified em-
ployability plan shall— 
‘‘(A) include a determination that, because 
of the disability of the recipient or the indi-
vidual for whom the recipient is caring, reason-
able modification of work activities, hourly par-
ticipation requirements, or both, is needed in 
order for the recipient to participate in the ac-
tivities; 
‘‘(B) describe the modified work activities 
in which the recipient is required to participate; 
‘‘(C) specify the number of hours per week 
for which the recipient is required to participate 
in the modified work activities, based on an 
evaluation by the State of the circumstances of 
the family; 
‘‘(D) describe the services, supports, and 
modifications that the State will provide to the 
recipient or the family of the recipient; 
‘‘(E) be developed in cooperation with the 
recipient; and 
‘‘(F) be reviewed not less often than every 
6 months. 
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162 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) DISABILITY.—The term ‘disability’ 
means a mental or physical impairment, includ-
ing substance abuse or addiction, that— 
‘‘(i) constitutes or results in a sub-
stantial impediment to employment; or 
‘‘(ii) substantially limits 1 or more 
major life activities. 
‘‘(B) MODIFIED
WORK
ACTIVITIES.—The 
term ‘modified work activities’ means activities 
which the State has determined will help the re-
cipient become employable.’’. 
(d) SANCTIONS.— 
(1) GENERAL SANCTION PROVISIONS.— 
(A) PROHIBITION ON IMPOSING LIFETIME 
OR FULL FAMILY SANCTION.— 
(i) PROHIBITION.—Section 408(a) (42 
U.S.C. 608(a)) is amended by adding at 
the end the following: 
‘‘(13) PROHIBITION ON IMPOSING LIFETIME OR 
FULL FAMILY SANCTION.—A State to which a grant 
is made under section 403 shall not impose a life-
time prohibition on the provision of assistance to 
any individual or family under the State program 
funded under this part or under a program funded 
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163 
with qualified State expenditures (as defined in sec-
tion 409(a)(7)(B)(i)) on the basis of the failure of 
a member of the family to comply with a program 
requirement.’’. 
(ii) PENALTY.—Section 409(a) (42 
U.S.C. 609), as amended by section 
903(c)(2)(A) of this title and subsection 
(b)(3) of this section, is amended by add-
ing at the end the following: 
‘‘(17) PENALTY
FOR
IMPOSING
LIFETIME
OR 
FULL FAMILY SANCTION.—If the Secretary deter-
mines that a State to which a grant is made under 
section 403 in a fiscal year has violated section 
408(a)(13) during the fiscal year, the Secretary 
shall reduce the grant payable to the State under 
section 403(a)(1) for the immediately succeeding fis-
cal year by an amount equal to 5 percent of the 
State family assistance grant.’’. 
(B) DUE PROCESS PROTECTIONS.— 
(i) IN GENERAL.—Section 408(a) (42 
U.S.C. 608(a)), as amended by subpara-
graph (A)(i) of this paragraph, is amended 
by adding at the end the following: 
‘‘(14) SANCTION PROCEDURES.— 
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164 
‘‘(A) PRE-SANCTION
REVIEW
PROCESS.— 
Before imposing a sanction against an indi-
vidual or family receiving assistance under the 
State program funded under this part or under 
a program funded with qualified State expendi-
tures (as defined in section 409(a)(7)(B)(i)) for 
failure to comply with program requirements, 
the State shall take the following steps: 
‘‘(i) Provide or send notice to the indi-
vidual or family, and, if the recipient’s na-
tive language is not English, through a 
culturally competent written or verbal 
translation, of the following information: 
‘‘(I) The specific reason for the 
proposed sanction. 
‘‘(II) The amount of the pro-
posed sanction. 
‘‘(III) The length of time during 
which the proposed sanction would be 
in effect. 
‘‘(IV) The steps required to come 
into compliance or to show good cause 
for noncompliance. 
‘‘(V) That the agency will provide 
assistance to help the individual dem-
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165 
onstrate good cause for noncompli-
ance, or come into compliance with 
program requirements. 
‘‘(VI) That the individual may 
appeal the determination to impose a 
sanction, and the steps that the indi-
vidual must take to pursue such an 
appeal. 
‘‘(ii)(I) Ensure that, subject to clause 
(iii)— 
‘‘(aa) an individual, other than 
the individual who determined that a 
sanction be imposed, will review the 
determination and have the authority 
to take the actions described in sub-
clause (II); and 
‘‘(bb) the individual or family 
against whom the sanction is to be 
imposed shall be afforded the oppor-
tunity to meet with the individual who 
is reviewing the determination to im-
pose the sanction. 
‘‘(II) The action described in this sub-
clause are the following: 
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