132 
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 
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 
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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.— 
(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: 
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134 
‘‘(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. 
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. 
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135 
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— 
(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 
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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-
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 
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137 
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-
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— 
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138 
(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 
‘‘(II) 1.00, plus (in the case of 
fiscal year 2014 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 2012, expressed as a decimal.’’. 
(c) MODIFICATION OF CONTINGENCY FUND.— 
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139 
(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). 
‘‘(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): 
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‘‘(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. 
‘‘(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 1st 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 
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‘‘(ii) if the 1st year of the period re-
ferred to in clause (i) is fiscal year 2014, 
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— 
‘‘(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 
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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. 
‘‘(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 
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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 
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. 
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144 
‘‘(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 
2014; 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 
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 
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145 
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.— 
(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)’’. 
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146 
(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-
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 
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147 
‘‘(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 
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 
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148 
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 
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 
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149 
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.’’. 
(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 
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