better serve thalidomide survivors in the United 
States; 
(3) a detailed accounting of funds appropriated 
and expended pursuant to this Act; 
(4) the number of individuals receiving com-
pensation under this Act; 
(5) an evaluation of the adequacy of the com-
pensation under the Thalidomide Survivors Com-
pensation Program to meet the medical and other 
needs of thalidomide survivors; 
(6) any recommendations for adjustments to 
amounts appropriated to carry out this Act; and 
(7) a summary of the feedback and satisfaction 
of individuals receiving compensation under this Act. 
SEC. 5. ADDITIONAL COMPENSATION. 
(a) IN GENERAL.—Subject to the availability of ap-
propriations following an annual review under section 4, 
the Secretary of Health and Human Services may pay to 
individuals who received compensation under the Thalido-
mide Survivors Compensation Program established under 
section 3 such additional compensation, as the Secretary 
determines appropriate, to meet the ongoing medical or 
other needs of such individuals. 
(b) TREATMENT
OF
PAYMENTS
RECEIVED
FOR 
MEANS-TESTED
WELFARE
PROGRAMS.—Compensation 
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provided under this section to an individual may not be 
considered for the purpose of calculating such individual’s 
income or assets under any means-tested welfare program. 
SEC. 6. COMPENSATION UNDER THALIDOMIDE SURVIVORS 
COMPENSATION 
PROGRAM 
EXCLUDABLE 
FROM INCOME TAX. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139L the following new section: 
‘‘SEC. 139M. COMPENSATION UNDER THE THALIDOMIDE 
SURVIVORS COMPENSATION PROGRAM. 
‘‘Gross income shall not include compensation re-
ceived by an individual under the Thalidomide Survivors 
Compensation Act of 2025.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
139L the following new item: 
‘‘Sec. 139M. Compensation under the Thalidomide Survivors Compensation 
Program.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts received after the date 
of enactment of this Act, in taxable years ending after 
such date. 
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SEC. 7. DEFINITION OF MEANS-TESTED WELFARE PRO-
GRAM. 
(a) MEANS-TESTED WELFARE PROGRAM.—In this 
Act, the term ‘‘means-tested welfare program’’— 
(1) means any Federal program that is de-
signed to specifically provide assistance or benefits 
exclusively to low-income Americans; and 
(2) includes community and economic develop-
ment programs targeted to low-income communities 
or populations. 
(b) PROGRAMS INCLUDED.—For purposes of sub-
section (a), the following Federal programs shall be con-
sidered means-tested welfare programs: 
(1) CASH AND GENERAL ASSISTANCE.— 
(A) The Supplemental Security Income 
program under title XVI of the Social Security 
Act. 
(B) The earned income tax credit deter-
mined under section 32 of the Internal Revenue 
Code of 1986. 
(C) The refundable portion of the child tax 
credit determined under section 24 of the Inter-
nal Revenue Code of 1986. 
(D) The program of block grants to States 
for temporary assistance for needy families 
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under part A of title IV of the Social Security 
Act. 
(E) The foster care and adoption assist-
ance program under part E of title IV of the 
Social Security Act. 
(F) General Assistance to Indians. 
(G) The programs operated under the As-
sets for Independence Act. 
(2) MEDICAL.— 
(A) The Medicare program under title 
XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.). 
(B) The Medicaid program under title XIX 
of the Social Security Act. 
(C) The State Children’s Health Insurance 
Program under title XXI of the Social Security 
Act. 
(D) Health programs operated by the In-
dian Health Service, Indian tribes, tribal orga-
nizations, and Urban Indian organizations (as 
those terms are defined in section 4 of the In-
dian Health Care Improvement Act (25 U.S.C. 
1603)). 
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(E) The health center programs under sec-
tion 330 of the Public Health Service Act (42 
U.S.C. 254b). 
(F) The Maternal and Child Health Serv-
ices Block Grant program under title V of the 
Social Security Act (42 U.S.C. 701 et seq.). 
(G) The Healthy Start Initiative under 
section 330H of the Public Health Service Act 
(42 U.S.C. 254c–8). 
(H) Premium tax credits and cost sharing 
reductions available pursuant to the Patient 
Protection and Affordable Health Care Act 
(PPACA) and the amendments made by such 
Act. 
(3) FOOD.— 
(A) The supplemental nutrition assistance 
program under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.). 
(B) The school lunch program under the 
Richard B. Russell National School Lunch Act 
(42 U.S.C. 1751 et seq.). 
(C) The special supplemental nutrition 
program for women, infants, and children under 
section 17 of the Child Nutrition Act (42 
U.S.C. 1786). 
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(D) The school breakfast program under 
section 4 of the Child Nutrition Act of 1966 
(42 U.S.C. 1773). 
(E) The child and adult care food program 
under section 17 of the Richard B. Russell Na-
tional School Lunch Act (42 U.S.C. 1766). 
(F) The nutrition services programs under 
the Older Americans Act of 1965 (42 U.S.C. 
3001 et seq.). 
(G) The summer food service program for 
children under section 13 of the Richard B. 
Russell National School Lunch Act (42 U.S.C. 
1761). 
(H) The commodity supplemental food 
program under section 4 of the Agriculture and 
Consumer Protection Act of 1973 (7 U.S.C. 
612c note). 
(I) 
Commodity 
distribution 
programs 
under the Emergency Food Assistance Act of 
1983 (7 U.S.C. 7501 et seq.). 
(J) The seniors farmers’ market nutrition 
program under section 3007 of Public Law 
107–171 (7 U.S.C. 3007). 
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(K) The special milk program established 
under section 3 of the Child Nutrition Act of 
1966 (42 U.S.C. 1772). 
(4) HOUSING.— 
(A) The rental assistance program under 
section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f). 
(B) The public housing program under 
title I of the United States Housing Act of 
1937 (42 U.S.C. 1437 et seq.). 
(C) The Home Investment Partnerships 
Program under title II of the Cranston-Gon-
zalez National Affordable Housing Act (42 
U.S.C. 12721 et seq.). 
(D) The programs for homeless assistance 
under title IV of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11360 et seq.). 
(E) The rural housing programs under 
title V of the Housing Act of 1949 (42 U.S.C. 
1471 et seq.). 
(F) The program for supportive housing 
for elderly persons under section 202 of the 
Housing Act of 1959 (12 U.S.C. 1701q). 
(G) The program for Native American 
housing block grants under the Native Amer-
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ican Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4101 et seq.). 
(H) The program for supportive housing 
for persons with disabilities under section 811 
of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013). 
(5) ENERGY AND UTILITIES.— 
(A) Low-income home energy assistance 
under the Low-Income Home Energy Assist-
ance Act of 1981 (42 U.S.C. 8621 et seq.). 
(B) The Lifeline Assistance Program of 
the Federal Communications Commission and 
the Tribal Link Up assistance program defined 
in section 54.413 of title 47, Code of Federal 
Regulations. 
(C) Weatherization assistance for low-in-
come persons under part A of title IV of the 
Energy Conservation and Production Act (42 
U.S.C. 6861 et seq.). 
(6) EDUCATION.— 
(A) Federal Pell Grants under subpart 1 
of part IV of the Higher Education Act of 1965 
(20 U.S.C. 1070a et seq.). 
(B) Grants for improving basic programs 
operated by local educational agencies under 
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part A of title I of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6311 
et seq.). 
(C) Federal TRIO programs under chapter 
1 of subpart 2 of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a–11 et 
seq.). 
(D) Federal supplemental educational op-
portunity grants under subpart 3 of part A of 
title IV the Higher Education Act of 1965 (20 
U.S.C. 1070b et seq.). 
(E) Programs for the education of migra-
tory children under part C of title 1 of the Ele-
mentary and Secondary Education Act of 1965 
(20 U.S.C. 6391 et seq.). 
(F) Gaining early awareness and readiness 
for undergraduate programs under chapter 2 of 
subpart 2 of part A of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070a–21 et 
seq.). 
(G) The education for homeless children 
and youth program under subtitle B of title VII 
of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11431 et seq.). 
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(H) The leveraging educational assistance 
partnership program of subpart 4 of part A of 
title IV the Higher Education Act of 1965 (20 
U.S.C. 1070c et seq.). 
(7) TRAINING.— 
(A) Job Corps under subtitle C of title I 
of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3191 et seq.). 
(B) Adult employment and training activi-
ties under title I of the Workforce Innovation 
and Opportunity Act (20 U.S.C. 3101 et seq.). 
(C) Senior community service employment 
programs under title V of the Older Americans 
Act of 1965 (42 U.S.C. 3056 et seq.). 
(D) Employment and training programs 
under the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.). 
(E) Migrant and seasonal farmworker pro-
grams under section 167 of the Workforce In-
novation and Opportunity Act (29 U.S.C. 
3222). 
(F) The YouthBuild Program under sec-
tion 171 of the Workforce Innovation and Op-
portunity Act (29 U.S.C. 3226). 
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(G) Native American Programs under sec-
tion 166 of the Workforce Innovation and Op-
portunity Act (29 U.S.C. 3221). 
(8) SERVICES.— 
(A) The Social Services Block Grant pro-
gram under title XX of the Social Security Act. 
(B) Programs under the Community Serv-
ices Block Grant Act of 1981 (42 U.S.C. 9901 
et seq.). 
(C) Services for aliens admitted to the 
United States as refugees or granted asylum in 
the United States, and other special populations 
of aliens. 
(D) State and community programs on 
aging that receive Federal funds. 
(E) Legal Services Corporation. 
(F) Family planning services under title X 
of the Public Health Service Act (42 U.S.C. 
300 et seq.). 
(G) The Emergency Food and Shelter Pro-
gram for homeless persons under title III of the 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11331 et seq.). 
(H) The AmeriCorps VISTA program 
under subtitle C of title I of the National and 
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Community Service Act of 1990 (42 U.S.C. 
12571 et seq.). 
(9) CHILD CARE AND CHILD DEVELOPMENT.— 
(A) Head Start programs and Early Head 
Start programs under the Head Start Act (42 
U.S.C. 9831 et seq.). 
(B) Programs under the Child Care and 
Development Block Grant Act of 1990 (42 
U.S.C. 9858 et seq.). 
(10) COMMUNITY DEVELOPMENT.— 
(A) The Community Development Block 
Grant Program under title I of the Housing 
and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.). 
(B) Programs administered by the Eco-
nomic Development Administration under the 
Public Works and Economic Development Act 
of 1965 (42 U.S.C. 3121 et seq.). 
(C) Programs administered by the Appa-
lachian Regional Commission under subtitle IV 
of title 40, United States Code. 
(D) Empowerment zones and enterprise 
communities under subchapter U, and renewal 
communities under subchapter X, of the Inter-
nal Revenue Code of 1986. 
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(11) VETERANS
PROGRAMS.—A program de-
signed exclusively or primarily to provide to an indi-
vidual benefits under title 38, United States Code, 
or other provisions of law administered by the Sec-
retary of Veterans Affairs. 
(12) UNEMPLOYMENT
COMPENSATION
PRO-
GRAMS.—A program that provides for the receipt of 
‘‘regular compensation’’, ‘‘extended compensation’’, 
or ‘‘additional compensation’’ (as such terms are de-
fined by section 205 of the Federal-State Extended 
Unemployment Compensation Act (26 U.S.C. 3304 
note)). 
(13) SOCIAL
SECURITY.—The Old-Age, Sur-
vivors, and Disability Insurance Benefit program 
under title II of the Social Security Act (42 U.S.C. 
401 et seq.). 
(c) SPECIAL RULES.— 
(1)(A) For purposes of subsection (a), only the 
refundable portion of the following tax credits shall 
be considered means-tested welfare programs: 
(i) The earned income tax credit under sec-
tion 32 of the Internal Revenue Code of 1986. 
(ii) The child tax credit under section 
24(d) of the Internal Revenue Code of 1986. 
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(B) For purposes of subsection (a), only the re-
fundable portion of the premium and out-of-pocket 
health care subsidies to be paid under the Patient 
Protection and Affordable Health Care Act shall be 
considered a means-tested welfare program. 
(C) For purposes of this paragraph, the term 
‘‘refundable portion’’ means the portion of the credit 
which is paid to an individual in excess of the 
amount of Federal income tax owed by the indi-
vidual. 
(2) For purposes of subsection (a), only the 
costs of the free and reduced price segments of the 
school lunch and school breakfast programs shall be 
considered means-tested welfare programs. 
(d) EXCLUSION OF CERTAIN STATE AND LOCAL EX-
PENDITURES.—For purposes of subsection (a), expendi-
tures by State and local governments of funds that are— 
(1) obtained by the State and local government 
from taxes, fees, or other sources of revenue estab-
lished by the State or local government; and 
(2) not received as any form of grant from the 
Federal Government, 
shall not be considered means-tested welfare programs, 
without regard to whether the State and local expenditures 
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