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. 
‘‘(4) USE OF GRANT.—Each State to which a 
grant is made under this subsection shall use the 
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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 
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-
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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— 
(i) in subsection (b)(2), by striking 
‘‘(10), (12), or (13)’’ and inserting ‘‘(11), 
or (12)’’; and 
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(ii) in subsection (c)(4), by striking 
‘‘(10), (12), (13), or (16)’’ and inserting 
‘‘(11), (12), or (15)’’. 
(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)(5))’’ and inserting ‘‘economically needy enti-
ty (as defined in section 403(b)(3)(A))’’. 
(4) AMOUNTS
PROVIDED
TO
TERRITORIES 
FROM
CONTINGENCY
FUND
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(b),’’ be-
fore ‘‘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— 
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‘‘(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 such State or tribe meets such 
terms and conditions as the Secretary 
shall, by regulation, establish, 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.— 
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‘‘(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 
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 
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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 determines to be 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),’’. 
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(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: 
‘‘(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 there lies a service area of the In-
dian tribe is located. 
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‘‘(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 
exceeds the amount of the grant so payable 
to the State for fiscal year 2010.’’. 
(f) CENSUS BUREAU STUDY.—Title IV is amended 
by inserting after section 413 (42 U.S.C. 613) the fol-
lowing: 
‘‘SEC. 414. STUDY BY THE CENSUS BUREAU. 
‘‘(a) IN GENERAL.—The Director of the Bureau of 
the Census shall conduct a study to assess the effects of 
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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. 
‘‘(b) APPROPRIATION.—Out of any money in the 
Treasury of the United States not otherwise appropriated, 
there are appropriated $10,000,000 for each fiscal year 
for payment to the Bureau of the Census to carry out sub-
section (a).’’. 
(g) 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 
2016),’’ before ‘‘403(a)(2)’’; and 
(2) in subsection (b)(2), by striking ‘‘fiscal year 
2012’’ and inserting ‘‘each fiscal year’’. 
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SEC. 6. 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 this subsection, 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 
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 
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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 
‘‘(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; 
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‘‘(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 
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. 
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‘‘(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-
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). 
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‘‘(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. 7. 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— 
(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 
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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) describes a well-being plan for 
each child in the family.’’. 
(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.’’. 
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(3) SANCTION FOR FAILURE OF STATE TO DE-
VELOP PLAN.—Section 409(a) (42 U.S.C. 609(a)), 
as amended by section 5(c)(2)(A) of this Act, 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 
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). 
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(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 
‘‘(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-
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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. 
‘‘(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 
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‘‘(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 
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 
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5(c)(2)(A) of this Act 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.— 
‘‘(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 
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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-
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-
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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 actions described in this 
subclause are the following: 
‘‘(aa) Modify the determination 
to impose a sanction. 
‘‘(bb) Determine that there was 
good cause for the failure to comply. 
‘‘(cc) Recommend modifications 
to the individual responsibility or em-
ployment plan of an individual. 
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‘‘(dd) Make such other deter-
minations and take such other actions 
as may be appropriate. 
‘‘(iii) The review required under 
clause (ii) shall include consideration of the 
following: 
‘‘(I) To the extent applicable, 
whether barriers to compliance exist, 
such as a physical or mental impair-
ment (including mental illness, sub-
stance abuse, mental retardation, or a 
learning disability), domestic or sexual 
violence, 
limited 
proficiency 
in 
English, limited literacy, homeless-
ness, or the need to care for a child 
with a disability or health condition, 
that contributed to the noncompli-
ance. 
‘‘(II) Whether the noncompliance 
resulted from failure to receive or 
have access to services identified as 
necessary in an individual responsi-
bility or employment plan. 
‘‘(III) Whether changes to the in-
dividual responsibility or employment 
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plan of an individual should be made 
in order for the individual to come 
into compliance. 
‘‘(IV) Whether there is good 
cause for any noncompliance. 
‘‘(V) Whether the sanction poli-
cies of the State have been applied 
properly. 
‘‘(B) SANCTION
FOLLOW-UP
REQUIRE-
MENTS.—If a State imposes a sanction on a 
family or individual for failing to comply with 
program requirements, the State shall— 
‘‘(i) provide or send notice to the indi-
vidual or family, in language calculated to 
be understood by the individual or family, 
and, if the individual’s or family’s native 
language is not English, through a cul-
turally competent translation, of the reason 
for the sanction and the steps the indi-
vidual or family must take to end the sanc-
tion; 
‘‘(ii) resume full assistance, services, 
or benefits to the individual or family 
under the program (if the individual or 
family is otherwise eligible for the assist-
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ance, services, or benefits) once the indi-
vidual who was not in compliance with pro-
gram requirements that led to the sanction 
complies with the requirements for a rea-
sonable period of time, as determined by 
the State and subject to State discretion to 
reduce the period; and 
‘‘(iii) if the State has not resumed 
providing the assistance, services, or bene-
fits as of the end of the 120-day period 
that begins on the date that is 60 days 
after the date on which the sanction was 
imposed, provide notice to the individual or 
family, in language calculated to be under-
stood by the individual or family, of the 
steps the individual or family must take to 
end the sanction, and of the availability of 
assistance to come into compliance or dem-
onstrate good cause for noncompliance. 
‘‘(C) NOTICE TO EVICTED PERSONS.—The 
State shall make a reasonable effort to provide 
to an individual or family that has been evicted 
from a residence for failure to pay rent or as 
a result of another problem related to poverty, 
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any notice required by this paragraph to be 
provided to the individual or family.’’. 
(ii) PENALTY.—Section 409(a) (42 
U.S.C. 609(a)), as amended by section 
5(c)(2)(A) of this Act, subsection (b)(3) of 
this section, and subparagraph (A)(ii) of 
this paragraph, is amended by adding at 
the end the following: 
‘‘(18) PENALTY
FOR
FAILURE
TO
FOLLOW 
SANCTION PROCEDURES.— 
‘‘(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(a)(14) 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 
fiscal year based on the degree of noncompli-
ance.’’. 
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(iii) STATE
PLAN
REQUIREMENT
TO 
DESCRIBE HOW STATES WILL NOTIFY AP-
PLICANTS
AND
RECIPIENTS
OF
THEIR 
RIGHTS UNDER THE PROGRAM AND OF PO-
TENTIAL BENEFITS AND SERVICES AVAIL-
ABLE
UNDER
THE
PROGRAM.—Section 
402(a)(1)(B)(iii) 
(42 
U.S.C. 
602(a)(1)(B)(iii)) is amended by inserting 
‘‘, and will notify applicants and recipients 
of assistance under the program of the 
rights of individuals under all laws applica-
ble to program activities and of all poten-
tial benefits and services available under 
the program’’ before the period. 
(2) MODIFICATIONS TO WORK SANCTION.— 
(A) ELIMINATION OF FULL FAMILY SANC-
TION; STATE
REQUIRED
TO
ESTABLISH
CER-
TAIN
GOOD
CAUSE
EXCEPTIONS.—Section 
407(e)(1) (42 U.S.C. 607(e)(1)) is amended— 
(i) by striking ‘‘shall—’’ and all that 
follows through subparagraph (B) and in-
serting ‘‘shall reduce the amount of assist-
ance otherwise payable to the family pro 
rata with respect to any period during a 
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month in which the individual so refuses,’’; 
and 
(ii) by striking ‘‘may establish’’ and 
inserting the following ‘‘shall establish, 
which shall include the decline of an offer 
of employment at a wage less than the 
greater of the applicable Federal or State 
minimum wage, or 80 percent of the wage 
that would have governed had the min-
imum hourly rate under the Fair Labor 
Standards Act been applicable to the offer 
of employment, at a site subject to a strike 
or lockout at the time of refusal, or for 
medical reasons or a lack of sufficient 
physical strength or stamina’’. 
(B) PROHIBITION ON SANCTIONING INDI-
VIDUAL FOR FAILURE TO ENGAGE IN WORK IF 
INDIVIDUAL
HAS
A
CHILD
UNDER
AGE
MONTHS
OR
IF
FAILURE
RESULTS
FROM
IN-
ABILITY TO SECURE CHILD CARE OR AFTER- 
SCHOOL ARRANGEMENTS FOR A CHILD UNDER 
AGE
13.—Section 
407(e)(2) 
(42 
U.S.C. 
607(e)(2)) is amended by striking ‘‘refusal’’ 
and all that follows and inserting ‘‘failure of an 
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individual to engage in work required in accord-
ance with this section if— 
‘‘(A) the individual is a single custodial 
parent caring for a child who has not attained 
6 months of age; or 
‘‘(B) the individual is the single custodial 
parent caring for a child who has not attained 
13 years of age, and the failure resulted from 
the inability of the individual to secure child 
care or after-school arrangements for the 
child’’. 
(3) MODIFICATIONS TO CHILD SUPPORT SANC-
TION.—Section 408(a)(2) (42 U.S.C. 608(a)(2)) is 
amended by striking ‘‘State—’’ and all that follows 
and inserting ‘‘State shall deduct from the assist-
ance that would otherwise be provided to the family 
of the individual under the State program funded 
under this part an amount equal to 25 percent of 
the amount of the assistance.’’. 
(e) RELATED STATE PLAN REQUIREMENT.—Section 
402(a) (42 U.S.C. 602(a)) is amended by adding at the 
end the following: 
‘‘(8) CERTIFICATION
THAT
EMPLOYMENT
AS-
SESSMENTS AND SANCTION REVIEWS WILL BE CON-
DUCTED
BY
COMPETENT
PERSONNEL.—A certifi-
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cation by the chief executive officer of the State that 
the employment assessments conducted pursuant to 
section 408(b)(1) and the sanction reviews con-
ducted pursuant to section 408(a)(14)(A) will be 
conducted by personnel who have sufficient edu-
cation, training, and professional competence to do 
so, which shall include information on the education, 
training, and professional competence that State will 
require of the personnel.’’. 
SEC. 8. PROHIBITION ON IMPOSING LIMIT OF LESS THAN 60 
MONTHS ON DURATION OF ASSISTANCE. 
(a) PROHIBITION.— 
(1) 
IN
GENERAL.—Section 
408(a)(7) 
(42 
U.S.C. 608(a)(7)) is amended— 
(A) in the paragraph heading, by striking 
‘‘NO ASSISTANCE FOR MORE THAN 5 YEARS’’ 
and inserting ‘‘DURATIONAL LIMITS ON ASSIST-
ANCE’’; 
(B) in the heading for subparagraph (A), 
by striking ‘‘IN GENERAL’’ and inserting ‘‘NO 
ASSISTANCE FOR MORE THAN 5 YEARS’’; and 
(C) by adding at the end the following: 
‘‘(H) PROHIBITION
ON
LIMITING
DURA-
TION
OF
ASSISTANCE
TO
LESS
THAN
MONTHS.—A State to which a grant is made 
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under section 403 shall not impose a limit of 
less than 60 months on the duration for which 
a family may be provided assistance from Fed-
eral or State funds under the State program 
funded under this part or under a program 
funded with qualified State expenditures (as de-
fined in section 409(a)(7)(B)(i)).’’. 
(2) CONFORMING AMENDMENT.—The heading 
of section 409(a)(9) (42 U.S.C. 609(a)(9)) is 
amended by striking ‘‘5-YEAR LIMIT’’ and inserting 
‘‘RULES GOVERNING DURATIONAL LIMITS’’. 
(b) REQUIREMENT TO CONDUCT OUTREACH TO IN-
FORM POTENTIALLY ELIGIBLE FAMILIES
OF ELIMI-
NATION OF DURATIONAL LIMIT ON ASSISTANCE OF LESS 
THAN 60 MONTHS.— 
(1) IN GENERAL.—Section 408(a) (42 U.S.C. 
608(a)), as amended by section 7(d)(1) of this Act, 
is amended by adding at the end the following: 
‘‘(15) REQUIREMENT TO CONDUCT OUTREACH 
TO INFORM POTENTIALLY ELIGIBLE RECIPIENTS OF 
ASSISTANCE OF ELIMINATION OF DURATIONAL LIMIT 
ON
ASSISTANCE
OF
LESS
THAN
MONTHS.—A 
State to which a grant is made under section 403 
for a fiscal year that, before the effective date of this 
paragraph, denied assistance under the State pro-
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gram funded under this part or any other State pro-
gram funded by qualified State expenditures (as de-
fined in section 409(a)(7)(B)(i)) to an individual or 
family on the basis of a durational limit on the as-
sistance that was imposed other than under section 
408(a)(7) shall conduct outreach to inform individ-
uals and families who were so denied that they may 
be eligible for additional months of the assistance.’’. 
(2) PENALTY.—Section 409(a) (42 U.S.C. 
609(a)), as amended by sections 5(c)(2)(A) and 
7(d)(1) of this Act, is amended by adding at the end 
the following: 
‘‘(19) FAILURE TO CONDUCT OUTREACH TO IN-
FORM POTENTIALLY ELIGIBLE RECIPIENTS OF AS-
SISTANCE OF ELIMINATION OF DURATIONAL LIMIT 
ON ASSISTANCE OF LESS THAN 60 MONTHS.—If the 
Secretary determines that a State to which a grant 
is made under section 403 in a fiscal year has vio-
lated section 408(a)(15) during the fiscal year, the 
Secretary shall reduce the grant payable to the State 
under section 403(a)(1) for the immediately suc-
ceeding fiscal year by an amount equal to 5 percent 
of the State family assistance grant.’’. 
(c) STATE PLAN REQUIRED TO INCLUDE DESCRIP-
TION OF HOW POTENTIALLY ELIGIBLE RECIPIENTS WILL 
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BE INFORMED OF ELIMINATION OF DURATIONAL LIMIT 
ON ASSISTANCE OF LESS THAN 60 MONTHS.—Section 
402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended by 
adding at the end the following: 
‘‘(vi) In the case of a State that, be-
fore the date this clause takes effect, de-
nied assistance under the program to an 
individual or family on the basis of a 
durational limit on the assistance that was 
imposed 
other 
than 
under 
section 
408(a)(7), the document shall describe how 
the State intends to inform the individuals 
and families who were so denied that they 
may be eligible for additional months of 
the assistance.’’. 
SEC. 9. RESPONSE OF TANF PROGRAM TO ECONOMIC RE-
CESSIONS. 
(a) INAPPLICABILITY OF DURATIONAL LIMIT ON AS-
SISTANCE.—Section 408(a)(7) (42 U.S.C. 608(a)(7)), as 
amended by section 8(a)(1)(C) of this Act, is amended by 
adding at the end the following: 
‘‘(I) INAPPLICABILITY
OF
DURATIONAL 
LIMIT DURING RECESSION.—Subparagraph (A) 
shall not apply in a State during any month 
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which is in a high unemployment period with 
respect to the State. 
‘‘(J) DISREGARD
OF
ASSISTANCE
PRO-
VIDED
DURING
RECESSION.—In determining 
the number of months for which an adult has 
received assistance under a State or tribal pro-
gram funded under this part or any other State 
program funded by qualified State expenditures 
(as defined in section 409(a)(7)(B)(i)), the 
State or tribe shall disregard any month which 
is in a high unemployment period with respect 
to the State. 
‘‘(K) 6-MONTH GRACE PERIOD REQUIRED 
AFTER
RECESSION.—Subparagraph (A) shall 
not apply to a recipient of assistance under the 
State program funded under this part or any 
other State program funded by qualified State 
expenditures 
(as 
defined 
in 
section 
409(a)(7)(B)(i)) during the 6-month period 
that begins with the month immediately fol-
lowing a high unemployment period with re-
spect to the State if the recipient received the 
assistance for the last month of the period.’’. 
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(b) REQUIREMENT TO CONDUCT OUTREACH TO IN-
FORM POTENTIALLY ELIGIBLE FAMILIES OF SUSPENSION 
OF DURATIONAL LIMIT ON ASSISTANCE.— 
(1) IN GENERAL.—Section 408(a) (42 U.S.C. 
608(a)), as amended by sections 7(d)(1) and 8(b)(1) 
of this Act, is amended by adding at the end the fol-
lowing: 
‘‘(16) REQUIREMENT TO CONDUCT OUTREACH 
TO INFORM POTENTIALLY ELIGIBLE RECIPIENTS OF 
ASSISTANCE OF SUSPENSION OF DURATIONAL LIMIT 
ON ASSISTANCE.—In each month which is a high un-
employment period with respect to a State to which 
a grant is made under section 403 for a fiscal year, 
the State shall conduct outreach to inform individ-
uals and families who are potentially eligible for as-
sistance under the State program funded under this 
part or any other State program funded by qualified 
State 
expenditures 
(as 
defined 
in 
section 
409(a)(7)(B)(i)) of the suspension of any durational 
limit on assistance under the program.’’. 
(2) PENALTY.—Section 409(a) (42 U.S.C. 
609(a)), as amended by sections 5(c)(2)(A), 7(d)(1), 
and 8(b)(2) of this Act, is amended by adding at the 
end the following: 
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‘‘(20) FAILURE TO CONDUCT OUTREACH TO IN-
FORM POTENTIALLY ELIGIBLE RECIPIENTS OF AS-
SISTANCE OF SUSPENSION OF DURATIONAL LIMIT 
ON ASSISTANCE.—If the Secretary determines that a 
State to which a grant is made under section 403 
in a fiscal year has violated section 408(a)(16) dur-
ing the fiscal year, the Secretary shall reduce the 
grant payable to the State under section 403(a)(1) 
for the immediately succeeding fiscal year by an 
amount equal to 5 percent of the State family assist-
ance grant.’’. 
(c) STATE PLAN REQUIRED TO INCLUDE DESCRIP-
TION OF HOW POTENTIALLY ELIGIBLE RECIPIENTS WILL 
BE INFORMED OF SUSPENSION OF TIME LIMITS DURING 
RECESSION.—Section 
402(a)(1)(B) 
(42 
U.S.C. 
602(a)(1)(B)), as amended by section 8(c) of this Act, is 
amended by adding at the end the following: 
‘‘(vii) The document shall describe 
how the State intends to inform potentially 
eligible recipients of assistance under the 
program of the suspension of durational 
limits on the assistance during a high un-
employment period with respect to the 
State.’’. 
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(d) HIGH UNEMPLOYMENT PERIOD DEFINED.—Sec-
tion 419 (42 U.S.C. 619) is amended by adding at the 
end the following: 
‘‘(6) 
HIGH
UNEMPLOYMENT
PERIOD
DE-
FINED.—The term ‘high unemployment period’ 
means, with respect to a State, a period of 1 or 
more consecutive months if the average rate of total 
unemployment in the State (seasonally adjusted) for 
the period consisting of the then most recent 3 
months for which data for all States are published 
equals or exceeds 6.5 percent.’’. 
SEC. 10. REQUIREMENT THAT STATES USE MERIT-BASED 
SYSTEM IN ADMINISTRATION OF TANF PRO-
GRAMS. 
(a) PROGRAM REQUIREMENT.—Section 408(a) (42 
U.S.C. 608(a)), as amended by sections 7(d)(1), 8(b)(1), 
and 9(b)(1) of this Act, is amended by adding at the end 
the following: 
‘‘(17) REQUIREMENT
TO
USE
MERIT-BASED 
SYSTEM IN ADMINISTERING PROGRAM.—A State to 
which a grant is made under section 403 shall estab-
lish and maintain personnel standards through a 
merit-based system, in administering the State pro-
gram funded under this part and any other State 
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program funded by qualified State expenditures (as 
defined in section 409(a)(7)(B)(i)).’’. 
(b) PENALTY.—Section 409(a) (42 U.S.C. 609), as 
amended by sections 5(c)(2)(A), 7(d)(1), 8(b)(2), and 
9(b)(2) of this Act, is amended by adding at the end the 
following: 
‘‘(21) PENALTY FOR FAILURE TO USE MERIT- 
BASED
SYSTEM
IN
ADMINISTERING
PROGRAM.—If 
the Secretary determines that a State to which a 
grant is made under section 403 in a fiscal year has 
violated section 408(a)(17) during the fiscal year, 
the Secretary shall reduce the grant payable to the 
State under section 403(a)(1) for the immediately 
succeeding fiscal year by an amount equal to 5 per-
cent of the State family assistance grant.’’. 
SEC. 11. BAN ON USING FEDERAL TANF FUNDS TO RE-
PLACE STATE AND LOCAL SPENDING THAT 
DOES NOT MEET THE DEFINITION OF QUALI-
FIED STATE EXPENDITURES. 
(a) PROHIBITION.—Section 408(a) (42 U.S.C. 
608(a)), as amended by sections 7(d)(1), 8(b)(1), 9(b)(1), 
and 10(a) of this Act, is amended by adding at the end 
the following: 
‘‘(18) BAN ON USING FEDERAL TANF FUNDS 
TO REPLACE STATE OR LOCAL SPENDING THAT IS 
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NOT A QUALIFIED STATE EXPENDITURE.—A State 
to which a grant is made under section 403, and a 
sub-State entity that receives funds from such a 
grant, shall not expend any part of the grant funds 
to supplant State or local spending for benefits or 
services which are not qualified State expenditures 
(within the meaning of section 409(a)(7)(B)(i)).’’. 
(b) PENALTY.—Section 409(a) (42 U.S.C. 609), as 
amended by sections 5(c)(2)(A), 7(d)(1), 8(b)(2), 9(b)(2), 
and 10(b) of this Act, is amended by adding at the end 
the following: 
‘‘(22) USE OF FEDERAL TANF FUNDS TO RE-
PLACE STATE OR LOCAL SPENDING THAT IS NOT A 
QUALIFIED STATE EXPENDITURE.—If the Secretary 
determines that a State to which a grant is made 
under section 403 in a fiscal year has violated sec-
tion 408(a)(18) 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.’’. 
SEC. 12. TANF ASSISTANCE TO MEET BASIC FAMILY ECO-
NOMIC NEEDS. 
(a) 
STATE
PLAN
REQUIREMENT.—Section 
402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as amended by 
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sections 8(c) and 9(c) of this Act, is amended by adding 
at the end the following: 
‘‘(viii) 
FAMILY
BUDGET
PROVI-
SIONS.—The document shall set forth a 
family budget of a dollar amount sufficient 
to meet the basic economic needs (includ-
ing food, clothing, shelter, utilities, house-
hold goods, personal care items, and gen-
eral incidental expenses) of a family, how 
the family budget is adjusted for family 
size, the method used to estimate the fam-
ily budget (including a statement of the re-
lationship between shelter and utility costs 
and the fair market rents in localities in 
the State), and the relationship between 
the amount of assistance provided to each 
family under the program and the amount 
of the family budget for the family.’’. 
(b) PROGRAM REQUIREMENT.—Section 408(a) (42 
U.S.C. 608(a)), as amended by sections 7(d)(1), 8(b)(1), 
9(b)(1), 10(a), and 11(a) of this Act, is amended by add-
ing at the end the following: 
‘‘(19) REQUIREMENT THAT AMOUNT OF ASSIST-
ANCE MEET BASIC ECONOMIC NEEDS.—A State to 
which a grant is made under section 403 shall en-
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sure that the total amount of assistance provided to 
a family under the State program funded under this 
part and all programs funded with qualified State 
expenditures (as defined in section 409(a)(7)(B)(i)) 
for which the family is eligible is sufficient to meet 
the basic economic needs of the family, taking into 
account all earned and unearned income of the fam-
ily and an amount not to exceed the value of the 
supplemental nutrition assistance benefits provided 
to the family under the Food and Nutrition Act of 
2008.’’. 
(c) PENALTY.—Section 409(a) (42 U.S.C. 609), as 
amended by sections 5(c)(2)(A), 7(d)(1), 8(b)(2), 9(b)(2), 
10(b), and 11(b) of this Act, is amended by adding at the 
end the following: 
‘‘(23) PENALTY FOR FAILURE OF STATE TANF 
ASSISTANCE TO MEET BASIC ECONOMIC NEEDS OF A 
RECIPIENT
FAMILY.—If the Secretary determines 
that a State to which a grant is made under section 
403 in a fiscal year has violated section 408(a)(19) 
during the fiscal year, the Secretary shall reduce the 
grant payable to the State under section 403(a)(1) 
for the immediately succeeding fiscal year by an 
amount equal to 5 percent of the State family assist-
ance grant.’’. 
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SEC. 13. STATE PLANS AND REPORTS ON CHILD POVERTY. 
(a) CHILD POVERTY REDUCTION AS A PURPOSE OF 
THE
TANF PROGRAM.—Section 401(a) (42 U.S.C. 
601(a)) is amended by redesignating paragraphs (1) 
through (4) as paragraphs (2) through (5), respectively, 
and by inserting before paragraph (2) (as so redesignated) 
the following: 
‘‘(1) reduce poverty among children;’’. 
(b) STATE PLAN PROVISIONS.— 
(1) MATTERS REQUIRED TO BE ADDRESSED.— 
Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is 
amended by adding at the end the following: 
‘‘(ix) GOALS AND METHODS FOR RE-
DUCING
CHILD
POVERTY.—Reduce child 
poverty using Federal funds provided 
under this part and State funds, including 
establishing numerical goals for reducing 
child poverty. 
‘‘(x) GOALS AND TRACKING OF WORK 
OUTCOMES.—Track work-related outcomes 
for recipients of assistance under the pro-
gram, such as employment entries, wages, 
and job retention, including establishing 
numerical goals for work-related outcomes 
for recipients. 
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‘‘(xi) PROVIDE PREVENTATIVE SERV-
ICES TO FAMILIES AT RISK OF ABUSE OR 
NEGLECT.—Provide benefits and services 
to families at risk of having their children 
removed from the home because of abuse 
and neglect, using Federal funds provided 
under this part and State funds. 
‘‘(xii) HOW NONCUSTODIAL PARENTS 
WILL
BE
SERVED.—Serve noncustodial 
parents, using Federal funds provided 
under this part and State funds.’’. 
(2) PUBLIC AVAILABILITY.—Section 402(c) (42 
U.S.C. 602(c)) is amended to read as follows: 
‘‘(c) PUBLIC AVAILABILITY.— 
‘‘(1) IN GENERAL.—The State shall make avail-
able to the public, including by posting on a public 
website of the State or another appropriate 
website— 
‘‘(A) each draft of any plan or plan 
amendment to be submitted by the State under 
this section, for at least 45 days before the sub-
mission; and 
‘‘(B) any such plan or amendment certified 
by the Secretary to be complete. 
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‘‘(2) PROCEDURES.—The State shall establish 
procedures to receive and respond to comments from 
the public, private sector organizations, and local 
governments on any draft referred to in paragraph 
(1).’’. 
(c) ANNUAL PERFORMANCE REPORT.—Section 411 
(42 U.S.C. 611) is amended by adding at the end the fol-
lowing: 
‘‘(e) ANNUAL PERFORMANCE REPORT BY STATES.— 
Not later than December 31 of each year, each eligible 
State shall submit to the Secretary (in accordance with 
such form and content rules as the Secretary, in consulta-
tion with the National Governor’s Association, National 
Conference of State Legislatures, and the American Public 
Human Services Association, develops) a report on the fol-
lowing aspects of the State program funded under this 
part in the preceding fiscal year: 
‘‘(1) Whether the State met the child poverty 
reduction goals set forth in the State plan. This part 
of the report shall include a discussion of the fac-
tors, including benefits, services, and activities fund-
ed with Federal funds provided under this part or 
State funds, which contributed to the meeting of, or 
the failure to meet, the goals. 
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‘‘(2) Whether the work programs of the State 
were effective in meeting the objectives and numer-
ical goals of the State plan. This part of the report 
shall include a discussion of data derived from the 
tracking of recipients, including— 
‘‘(A) the number of families that left the 
State program funded under this part; 
‘‘(B) the employment rate for those who 
left the program in each calendar quarter; 
‘‘(C) the wage rates of those who left the 
program, including the percentage of leavers 
who, in each calendar quarter, earned an 
amount equal to at least 50 percent of the aver-
age wage then paid in the State; and 
‘‘(D) the employment outcomes of those 
who left the program because of a durational 
limit on assistance, reported at 6 months, 12 
months, 24 months, and 36 months after leav-
ing the program. 
The Secretary shall provide States with technical as-
sistance in preparing this part of the report, includ-
ing by providing States with data from the National 
Directory of New Hires. 
‘‘(3) Whether the State has been effective in 
providing benefits and services under the program to 
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persons with disabilities. This part of the report 
shall include a report on recipients of assistance 
under the State program funded under this part who 
participated in work activities (as defined in section 
407(d)) pursuant to a modified employability plan 
due to disability, including the following: 
‘‘(A) The aggregate number of recipients 
with modified employability plans due to a dis-
ability. 
‘‘(B) The percentage of all recipients with 
modified employability plans who substantially 
complied with activities set forth in the plans 
each month of the fiscal year. 
‘‘(C) Information regarding the most prev-
alent types of physical and mental impairments 
that provided the basis for the disability deter-
minations. 
‘‘(D) The percentage of cases with a modi-
fied employability plan in which the recipient 
had a disability, was caring for a child with a 
disability, or was caring for another family 
member with a disability. 
‘‘(E) A description of the most prevalent 
types of modification in work activities or hours 
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of participation that were included in the modi-
fied employability plans. 
‘‘(F) A description of the qualifications of 
the staff who determined whether individuals 
had a disability, of the staff who determined 
that individuals needed modifications to their 
work requirements, and of the staff who devel-
oped the modified employability plans. 
‘‘(4) The effectiveness of the benefits and serv-
ices provided under the State program in reducing 
the number of children removed from their homes 
because of abuse and neglect. This part of the report 
shall include an analysis which includes the fol-
lowing: 
‘‘(A) The number of families provided the 
benefits or services that were at risk of having 
their children removed from the home. 
‘‘(B) The number of families served by the 
program that had 1 or more children removed 
from the home because of abuse or neglect. 
‘‘(5) An analysis of the extent to which the ben-
efits and services under the State program were pro-
vided to noncustodial parents. 
‘‘(6) How funds provided to the State under 
this part, with a separate accounting for funds pro-
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vided under section 403(a)(3) and funds provided 
under section 403(b), were used to serve areas of the 
State with the greatest need (as referred to in sec-
tion 402(a)(1)(A)(i)). This part of the report shall 
include supporting data.’’. 
(d) ANNUAL REPORT TO CONGRESS ON THE EF-
FORTS OF STATE PROGRAMS TO PROMOTE AND SUPPORT 
EMPLOYMENT FOR INDIVIDUALS WITH DISABILITIES.— 
Section 411 (42 U.S.C. 611), as amended by subsection 
(c) of this section, is amended by adding at the end the 
following: 
‘‘(f) REPORT BY SECRETARY.—Not later than July 
31 of each fiscal year, the Secretary shall submit to the 
Congress a report, entitled ‘Efforts in State TANF Pro-
grams to Promote and Support Employment for Individ-
uals with Disabilities’, that includes information on State 
efforts to engage individuals with disabilities in work ac-
tivities during the preceding fiscal year. The report shall 
include the following information: 
‘‘(1) For each State, the number of individuals 
for whom the State has developed a modified em-
ployability plan. 
‘‘(2) The types of physical and mental impair-
ments that provided the basis for the disability de-
termination, and whether the individual with the dis-
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ability was an adult recipient or minor child head of 
household, a child, or a non-recipient family mem-
ber. 
‘‘(3) The types of modifications that States 
have included in modified employability plans. 
‘‘(4) The extent to which individuals with a 
modified employability plan are participating in work 
activities. 
‘‘(5) For each State, an analysis of the extent 
to which the option to establish modified employ-
ability plans was a factor in the State achieving or 
not achieving the minimum participation rate re-
quired by section 407(a).’’. 
(e) REPORT TO CONGRESS ON LEGISLATIVE OPTIONS 
TO REWARD STATES WITH HIGH EMPLOYMENT RATES 
AND HIGH RATES OF EMPLOYMENT AT GOOD WAGES.— 
Within 4 years after the effective date of this section, the 
Secretary of Health and Human Services shall submit to 
the Congress a report that sets forth options for the enact-
ment of legislation to provide financial or other rewards 
to States that have high rates of employment and high 
rates of employment at good wages. 
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SEC. 14. REQUIREMENT THAT STATES ADOPT STANDARDS 
AND PROCEDURES TO ADDRESS DOMESTIC 
AND SEXUAL VIOLENCE AMONG TANF RE-
CIPIENTS. 
(a) IN GENERAL.—Section 402(a)(7) (42 U.S.C. 
602(a)(7)) is amended— 
(1) by striking the paragraph heading and in-
serting ‘‘CERTIFICATION OF STANDARDS AND PRO-
CEDURES REGARDING DOMESTIC AND SEXUAL VIO-
LENCE’’; 
(2) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) IN GENERAL.—A certification by the 
chief executive officer of the State that the 
State has established and is enforcing stand-
ards and procedures to ensure the right and en-
titlement of victims of domestic or sexual vio-
lence (notwithstanding section 401(b)) seeking 
or receiving assistance under the State program 
funded under this part or any other State pro-
gram funded by qualified State expenditures (as 
defined in section 409(a)(7)(B)(i))— 
‘‘(i) to be screened and identified 
while maintaining the confidentiality of the 
victims; 
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‘‘(ii) to be referred to counseling and 
supportive services; 
‘‘(iii) to be granted a waiver, pursuant 
to a determination of good cause, of pro-
gram requirements such as time limits (for 
so long as necessary), residency require-
ments, child support cooperation require-
ments, and family cap provisions, in cases 
where compliance with the requirements 
would make it more difficult for the vic-
tims to escape domestic or sexual violence 
or unfairly penalize the victims or other in-
dividuals who are at risk of further domes-
tic or sexual violence; 
‘‘(iv) to apply to participate in the 
program on the same day the victim ap-
pears in person in a program office during 
office hours; 
‘‘(v) to have an application that con-
tains the name, address, and signature of 
the victim considered to be filed on the 
date the application is submitted; 
‘‘(vi) to receive at the time of applica-
tion a clear, written statement explaining 
what the victim must do to cooperate in 
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obtaining verification and otherwise com-
pleting the application process; and 
‘‘(vii) if the victim has completed the 
application process, to have the eligibility 
of the victim for assistance determined 
promptly, and to be provided assistance 
retroactive to the application date if deter-
mined eligible within 30 days after the ap-
plication date.’’; and 
(3) in subparagraph (B)— 
(A) in the subparagraph heading, by in-
serting ‘‘OR SEXUAL’’ after ‘‘DOMESTIC’’; and 
(B) in the text, by inserting ‘‘or sexual’’ 
after ‘‘domestic’’. 
(b) REPORT TO THE CONGRESS ON BEST PRACTICES 
OF STATES.—Section 413 (42 U.S.C. 613) is amended by 
adding at the end the following: 
‘‘(k) REPORT TO CONGRESS ON BEST PRACTICES OF 
STATES IN ADDRESSING DOMESTIC AND SEXUAL VIO-
LENCE SUFFERED
BY TANF RECIPIENTS.—Every 4 
years, the Secretary shall prepare and submit to the Con-
gress a report which examines the practices of States in 
implementing section 402(a)(7), and identifies the best 
practices used to do so.’’. 
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