‘‘(6) BONUS
TO
REWARD
STATES
FOR
ECO-
NOMIC OPPORTUNITY ACCOUNTABILITY.—
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant to the eligible States to which the
Secretary has assigned the 5 greatest scores in
providing economic opportunity and account-
ability for a fiscal year, based on training, plac-
ing, and retaining welfare leavers in employ-
ment identified in an assessment conducted
under section 411(b).
‘‘(B) SCORING.—The Secretary shall de-
vise a system for assigning scores to States
under subparagraph (A).
‘‘(C) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there are appropriated
$150,000,000 for each fiscal year for grants
under this paragraph.’’.
TITLE III—TIME LIMITS
SEC. 301. EFFECT OF WAGE SUBSIDIES ON 5-YEAR LIMIT.
Section 408(a)(7) of the Social Security Act (42
U.S.C. 608(a)(7)) is amended by adding at the end the
following:
‘‘(H) LIMITATION
ON
MEANING
OF ‘AS-
SISTANCE’ FOR FAMILIES WITH INCOME FROM
EMPLOYMENT.—For purposes of this para-
graph, a benefit or service provided to a family
during a month under the State program fund-
ed under this part shall not be considered as-
sistance under the program if, during the
month, the family includes an adult or a minor
child head of household who has received at
least such amount of income from employment
as the State may establish.’’.
SEC. 302. IMPROVING HARDSHIP EXCEPTION TO 5-YEAR
LIMIT ON ASSISTANCE.
(a) AUTHORITY TO PROVIDE FURTHER EXEMP-
TIONS.—Section 408(a)(7)(C)(ii) of the Social Security
Act (42 U.S.C. 608(a)(7)(C)(ii)) is amended by adding at
the end the following: ‘‘, except as otherwise provided in
a State plan provision that has been approved by the Sec-
retary’’.
(b) CLARIFICATION OF SCOPE OF HARDSHIP EXCEP-
TION.—Section 408(a)(7)(C)(i) of such Act (42 U.S.C.
608(a)(7)(C)(i)) is amended by inserting ‘‘(as defined by
the State in a manner that includes mental illness and
disability that is not sufficient to make the sufferer eligible
for supplemental security income benefits under title
XVI)’’ after ‘‘hardship’’.
SEC. 303. REQUIREMENT THAT STATES HAVE CASE MAN-
AGEMENT PLAN FOR HARDSHIP CLIENTS
WITH 
MULTIPLE 
BARRIERS 
TO 
EMPLOY-
MENT.
Section 402(a)(1)(B) of the Social Security Act (42
U.S.C. 602(a)(1)(B)) is amended by adding at the end
the following:
‘‘(v) Establish a plan to provide ap-
propriate case management planning and
services for individuals who have a hard-
ship defined under section 408(a)(7)(C)(i)
and have multiple barriers to employ-
ment.’’.
TITLE IV—FUNDING
SEC. 401. INFLATION ADJUSTMENT OF FAMILY ASSISTANCE
GRANTS.
(a) IN GENERAL.—Section 403(a)(1)(A) of the Social
Security Act (42 U.S.C. 603(a)(1)(A)) is amended by
striking ‘‘of fiscal years 1996’’ and all that follows through
‘‘2002’’ and inserting ‘‘fiscal year’’.
(b) INFLATION ADJUSTMENT.—Section 403(a)(1) of
such Act (42 U.S.C. 603(a)(1)) is amended—
(1) in subparagraph (B)—
(A) by striking ‘‘means the greatest of—’’
and inserting ‘‘means, with respect to a fiscal
year referred to in subparagraph (A) of this
paragraph—
‘‘(i) the greatest of—’’;
(B) by redesignating each of clauses (i),
(ii)(I), (ii)(II), and (iii) as subclauses (I),
(II)(aa), (II)(bb), and (III), respectively;
(C) by indenting each of the provisions
specified in subparagraph (B) of this paragraph
2 additional ems to the right;
(D) by striking the period and inserting ‘‘;
multiplied by’’; and
(E) by adding at the end the following:
‘‘(ii) 1.00, plus the inflation percent-
age (as defined in subparagraph (F) of
this paragraph) in effect for the fiscal year
referred to in subparagraph (A) of this
paragraph.’’; and
(2) by adding at the end the following:
‘‘(F) INFLATION PERCENTAGE.—For pur-
poses of subparagraph (B) of this paragraph,
the inflation percentage applicable to a fiscal
year is the percentage (if any) by which—
‘‘(i) the average of the Consumer
Price Index (as defined in section 1(f)(5)
of the Internal Revenue Code of 1986) for
the 12-month period ending on September
30 of the immediately preceding fiscal
year; exceeds
‘‘(ii) the average of the Consumer
Price Index (as so defined) for the 12-
month period ending on September 30,
2001.’’.
SEC. 402. INFLATION ADJUSTMENT OF MAINTENANCE OF
EFFORT REQUIREMENT.
Section 409(a)(7) of the Social Security Act (42
U.S.C. 609(a)(7)) is amended—
(1) in subparagraph (A), by inserting ‘‘infla-
tion-adjusted’’ before ‘‘historic State expenditures’’;
and
(2) in subparagraph (B), by adding at the end
the following:
‘‘(vi) INFLATION-ADJUSTED HISTORIC
STATE EXPENDITURES.—The term ‘infla-
tion-adjusted historic State expenditures’
means, with respect to a fiscal year, his-
toric State expenditures with respect to the
fiscal year, multiplied by the sum of 1.00
plus the inflation percentage (as defined in
section 403(a)(2)(F)) in effect for the fis-
cal year.’’.