148
lished by the Department of Commerce in
the May 2002 Survey of Current Business—
‘‘(I) exceeds 80 percent, but does
not exceed 90 percent of the average
per capita income determined for all
States for such calendar years; or
‘‘(II) does not exceed 80 percent of
the average per capita income deter-
mined for all States for such calendar
years.
‘‘(iv) APPLICABLE AMOUNT.—For pur-
poses of clause (i), the applicable amount
described in this clause is the following:
‘‘(I) STATE
WITH
A
SUPPLE-
MENTAL GRANT IN FISCAL YEAR 2002.—
In the case of a State that meets the
criteria described in clause (ii), the
amount paid to the State under para-
graph (3) for fiscal year 2002 (as in
effect with respect to such fiscal year).
‘‘(II) STATE WITH PER CAPITA IN-
COME BELOW NATIONAL AVERAGE.—In
the case of a State that meets the cri-
teria described in—
149
‘‘(aa) 
clause 
(iii)(I), 
the
amount equal to 5 percent of the
State family assistance grant de-
termined for the State for fiscal
year 2003 (without regard to this
subparagraph, in the case of a
State that meets the criteria in
clause (ii)); or
‘‘(bb) clause (iii)(II), the
amount equal to 10 percent of the
State family assistance grant de-
termined for the State for fiscal
year 2003 (as so determined).
‘‘(III) 
STATE
DESCRIBED
IN
CLAUSES (II) AND (III).—In the case of
a State that meets the criteria de-
scribed in clauses (ii) and (iii), the
amount equal to the sum of the
amounts determined under subclauses
(I) and (II) with respect to the State.
‘‘(v) DEFINITION OF STATE.—In this
subparagraph, the term ‘State’ means each
of the 50 States and the District of Colum-
bia.’’; and
150
(5) in subparagraph (F), as redesignated by
paragraph (3), by striking ‘‘for fiscal years’’ and all
that follows through the period and inserting ‘‘for
State 
family 
assistance 
grants 
under 
this
paragraph—
‘‘(i) 
for 
fiscal 
year 
2003,
$17,044,348,000; and
‘‘(ii) for each of fiscal years 2004
through 2007, $17,042,348,000.’’.
SEC. 102. CONTINGENCY FUND.
(a) CONTINGENCY FUNDING AVAILABLE
TO NEEDY
STATES.—Section 403(b) (42 U.S.C. 603(b)) is amended—
(1) by striking paragraphs (1) through (3) and
inserting the following:
‘‘(1) CONTINGENCY FUND GRANTS.—
‘‘(A) PAYMENTS.—Subject to subparagraph
(C), and out of funds appropriated under sub-
paragraph (E), each State shall receive a contin-
gency fund grant for each eligible month in
which the State is a needy State under para-
graph (3).
‘‘(B) MONTHLY CONTINGENCY FUND GRANT
AMOUNT.—For each eligible month in which a
State is a needy State, the State shall receive a
contingency fund grant equal to the higher of $0
151
and the applicable percentage (as defined in sub-
paragraph (D)(i)) of the product of—
‘‘(i) the applicable benefit level (as de-
fined in subparagraph (D)(ii)); and
‘‘(ii) the adjusted increase in the num-
ber of families receiving assistance under
the State program funded under this part
and all programs funded with qualified
State expenditures (as defined in subpara-
graph (D)(iii)).
‘‘(C) LIMITATION.—The total amount paid
to a single State under subparagraph (A) during
a fiscal year shall not exceed the amount equal
to 10 percent of the State family assistance grant
(as defined under subparagraph (B) of subsection
(a)(1) and increased under subparagraph (E) of
that subsection).
‘‘(D) DEFINITIONS.—In this paragraph:
‘‘(i) APPLICABLE
PERCENTAGE.—The
term ‘applicable percentage’ means the
higher of—
‘‘(I) 60 percent; and
‘‘(II) the Federal medical assist-
ance percentage for the State (as de-
fined in section 1905(b)).
152
‘‘(ii) APPLICABLE BENEFIT LEVEL.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II), the term ‘applicable
benefit level’ means the amount equal
to the maximum cash assistance grant
for a family consisting of 3 individuals
under the State program funded under
this part.
‘‘(II) RULE
FOR
STATES
WITH
MORE
THAN
MAXIMUM
LEVEL.—In
the case of a State that has more than
1 maximum cash assistance grant level
for families consisting of 3 individuals,
the basic assistance cost shall be the
amount equal to the maximum cash
assistance grant level applicable to the
largest number of families consisting of
individuals 
receiving 
assistance
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)).
‘‘(iii) ADJUSTED
INCREASE
IN
THE
NUMBER OF FAMILIES RECEIVING ASSIST-
ANCE UNDER THE STATE PROGRAM FUNDED
153
UNDER
THIS
PART
AND
ALL
PROGRAMS
FUNDED WITH QUALIFIED STATE EXPENDI-
TURES.—The term ‘adjusted increase in the
number of families receiving assistance
under the State program funded under this
part and all programs funded with quali-
fied State expenditures’ means the increase
in—
‘‘(I) the unduplicated number of
families receiving assistance under the
State program funded under this part
and all programs funded with quali-
fied State expenditures (as defined in
section 409(a)(7)(B)(i)) in the most re-
cent month for which data from the
State are available; as compared to
‘‘(II) the product of—
‘‘(aa) the lower of the average
monthly number of families re-
ceiving such assistance in either of
the 2 completed fiscal years imme-
diately preceding the fiscal year
in which the State initially quali-
fies as a needy State; and
‘‘(bb) 1.04.
154
‘‘(E) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there is appropriated for the
period of fiscal years 2003 through 2007, such
sums as are necessary for making contingency
fund grants under this subsection in a total
amount not to exceed $2,000,000,000.’’;
(2) by redesignating paragraph (4) as para-
graph (2); and
(3) in paragraph (2), as so redesignated—
(A) by striking ‘‘(3)(A)’’ and inserting
‘‘(1)’’; and
(B) by striking ‘‘2-month period that begins
with any’’ and inserting ‘‘fiscal year quarter
that includes a’’.
(b) 
MODIFICATION
OF
DEFINITION
OF
NEEDY
STATE.—Section 403(b), as amended by subsection (a), (42
U.S.C. 603(b)) is further amended—
(1) by striking paragraphs (5) and (6);
(2) by redesignating paragraphs (7) and (8) as
paragraphs (5) and (6), respectively; and
(3) by inserting after paragraph (2) (as redesig-
nated by subsection (a)(2)) the following:
‘‘(3) INITIAL DETERMINATION OF WHETHER A
STATE QUALIFIES AS A NEEDY STATE.—
155
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), a State will be initially determined to
be a needy State for a month if the State satis-
fies any of the following:
‘‘(i) The—
‘‘(I) average rate of total unem-
ployment in the State for the period
consisting of the most recent 3 months
for which data are available has in-
creased by the lesser of 1.5 percentage
points or by 50 percent over the cor-
responding 3-month period in either of
the 2 most recent preceding fiscal
years; or
‘‘(II) average insured unemploy-
ment rate for the most recent 3 months
for which data are available has in-
creased by 1 percentage point over the
corresponding 3-month period in either
of the 2 most recent preceding fiscal
years.
‘‘(ii) As determined by the Secretary of
Agriculture, the monthly average number of
households (as of the last day of each
month) that participated in the food stamp
156
program in the State in the then most re-
cently concluded 3-month period for which
data are available exceeds by at least 10
percent the monthly average number of
households (as of the last day of each
month) in the State that participated in the
food stamp program in the corresponding 3-
month period in either of the 2 most recent
preceding fiscal years, but only if the Sec-
retary of Agriculture makes a determination
that the State’s increased caseload was due,
in large measure, to economic conditions
rather than changes in Federal or State
policies related to the food stamp program.
‘‘(iii) As determined by the Secretary,
the monthly average of the unduplicated
number of families that received assistance
under the State program funded under this
part and all programs funded with quali-
fied State expenditures (as defined in sec-
tion 409(a)(7)(B)(i)) in the most recently
concluded 3-month period for which data
are available from the State increased by at
least 10 percent over the number of such
families that received such benefits in the
157
corresponding 3-month period in either of
the 2 most recent preceding fiscal years, but
only if the Secretary makes a determination
that the State’s increased caseload was due,
in large measure, to economic conditions
rather than State policy changes.
‘‘(B) DURATION.—
‘‘(i) IN GENERAL.—A State that quali-
fies as a needy State—
‘‘(I) under subparagraph (A)(i),
shall be considered a needy State until
either the State’s (seasonally adjusted)
total unemployment rate or (seasonally
adjusted) insured unemployment rate,
whichever rate was used to meet the
definition as a needy State under that
subparagraph for the most recently
concluded 3-month period for which
data are available, falls below the level
attained in the 3-month period that
was used to first determine that the
State qualified as a needy State under
that subparagraph;
‘‘(II) under subparagraph (A)(ii),
shall be considered a needy State until
158
the average monthly number of house-
holds participating in the food stamp
program for the most recently con-
cluded 3-month period for which data
are available nationally falls below the
food stamp base period level; and
‘‘(III) 
under 
subparagraph
(A)(iii), shall be considered a needy
State until the unduplicated number of
families receiving assistance under the
State program funded under this part
and all programs funded with quali-
fied State expenditures (as defined in
section 409(a)(7)(B)(i)) for the most
recently concluded 3-month period for
which data are available falls below the
TANF base period level.
‘‘(ii) SEASONAL VARIATIONS.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II), notwithstanding sub-
clauses (II) and (III) of clause (i), a
State shall be considered a needy
State—
‘‘(aa) under subparagraph
(A)(ii), if with respect to the
159
State, the monthly average num-
ber of households participating in
the food stamp program for the
most recent 3-month period for
which data are available nation-
ally falls below the food stamp
base period level and the Sec-
retary determines that this is due
to expected seasonal variations in
food stamp receipt in the State;
and
‘‘(bb) under subparagraph
(A)(iii), if, with respect to a
State, the monthly average of the
number of unduplicated families
receiving assistance 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 the most re-
cently concluded 3-month period
for which data are available na-
tionally falls below the TANF base
period level and the Secretary de-
160
termines that this is due to ex-
pected seasonal variations in as-
sistance receipt in the State.
‘‘(II) 
LIMITATIONS.—A 
State
shall not be considered a needy State
pursuant to—
‘‘(aa) item (aa) of subclause
(I), unless the Secretary of Agri-
culture determines that the num-
ber of households receiving food
stamps remained at elevated levels
largely due to economic factors;
and
‘‘(bb) item (bb) of subclause
(II), unless the Secretary deter-
mines that the unduplicated num-
ber of families receiving assistance
under the State program funded
under this part and all programs
funded with qualified State ex-
penditures (as defined in section
409(a)(7)(B)(i)) remained at ele-
vated levels largely due to eco-
nomic factors.
161
‘‘(iii) FOOD
STAMP
BASE
PERIOD
LEVEL.—In this subparagraph, the term
‘food stamp base period level’ means the
monthly average number of households par-
ticipating in the food stamp program that
corresponds to the most recent 3-month pe-
riod for which data are available at the
time when the State first was determined to
be a needy State under this paragraph.
‘‘(iv) TANF BASE PERIOD LEVEL.—In
this subparagraph, the term ‘TANF base pe-
riod level’ means the monthly average of the
unduplicated number of families receiving
assistance under the State program funded
under this part and all programs funded
with qualified State expenditures (as de-
fined in section 409(a)(7)(B)(i)) that cor-
responds to the most recent 3 months for
which data are available at the time when
the State first was determined to be a needy
State under this paragraph.
‘‘(4) EXCEPTIONS.—
‘‘(A) UNEXPENDED BALANCES.—
‘‘(i) IN
GENERAL.—Notwithstanding
paragraph (3), a State that has unexpended
162
TANF balances in an amount that exceeds
30 percent of the total amount of grants re-
ceived by the State under subsection (a) for
the most recently completed fiscal year
(other than welfare-to-work grants made
under paragraph (5) of that subsection
prior to fiscal year 2000), shall not be a
needy State under this subsection.
‘‘(ii) DEFINITION
OF
UNEXPENDED
TANF BALANCES.—In clause (i), the term
‘unexpended TANF balances’ means the les-
sor of—
‘‘(I) the total amount of grants
made to the State (regardless of the fis-
cal year in which such funds were
awarded) under subsection (a) (other
than 
welfare-to-work 
grants 
made
under paragraph (5) of that subsection
prior to fiscal year 2000) but not yet
expended as of the end of the fiscal
year preceding the fiscal year for
which the State would, in the absence
of this subparagraph, be considered a
needy State under this subsection; and
163
‘‘(II) the total amount of grants
made to the State under subsection (a)
(other 
than 
welfare-to-work 
grants
made under paragraph (5) of that sub-
section prior to fiscal year 2000) but
not yet expended as of the end of such
preceding fiscal year, plus the dif-
ference between—
‘‘(aa) the pro rata share of
the current fiscal year grant to be
made under subsection (a) to the
State; and
‘‘(bb) current year expendi-
tures of the total amount of grants
made to the State under sub-
section (a) (regardless of the fiscal
year in which such funds were
awarded) (other than such wel-
fare-to-work grants) through the
end of the most recent calendar
quarter.
‘‘(B) FAILURE
TO
SATISFY
MAINTENANCE
OF
EFFORT
REQUIREMENT.—Notwithstanding
paragraph (3), a State that fails to satisfy the
requirement of section 409(a)(7) with respect to
164
a fiscal year shall not be a needy State under
this subsection for that fiscal year.’’.
(c) CLARIFICATION OF REPORTING REQUIREMENTS.—
Paragraph (6) of section 403(b) (42 U.S.C. 603(b)), as re-
designated by subsection (b)(2), is amended by striking ‘‘on
the status of the Fund’’ and inserting ‘‘on the States that
qualified for contingency funds and the amount of funding
awarded under this subsection’’.
(d) ELIMINATION OF PENALTY FOR FAILURE TO MAIN-
TAIN 100 PERCENT MAINTENANCE OF EFFORT.—Section
409(a) (42 U.S.C. 609(a)) is amended—
(1) by striking paragraph (10); and
(2) be redesignating paragraphs (11) through
(14) as paragraphs (10) through (13), respectively.
SEC. 103. CHILD CARE.
(a) MANDATORY FUNDING.—
(1) IN
GENERAL.—Section 418(a) (42 U.S.C.
618(a)) is amended—
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by inserting ‘‘and
paragraph (6)’’ after ‘‘paragraph (3)’’;
(B) in paragraph (3)—
(i) by striking ‘‘and’’ at the end of sub-
paragraph (E);
165
(ii) in subparagraph (F), by striking
‘‘fiscal year 2002.’’ and inserting ‘‘each of
fiscal years 2002 through 2005; and’’; and
(iii) by adding at the end the fol-
lowing:
‘‘(G) $2,967,000,000 for each of fiscal years
2006 and 2007.’’;
(C) by striking paragraph (4) and inserting
the following:
‘‘(4) AMOUNTS RESERVED.—
‘‘(A) INDIAN TRIBES.—The Secretary shall
reserve 2 percent of the aggregate amount appro-
priated to carry out this section under para-
graphs (3) and (5) for each fiscal year for pay-
ments to Indian tribes and tribal organizations
for each such fiscal year for the purpose of pro-
viding child care assistance.
‘‘(B) PUERTO
RICO.—The Secretary shall
reserve $10,000,000 of the amount appropriated
under paragraph (5) for each fiscal year for pay-
ments to the Commonwealth of Puerto Rico for
each such fiscal year for the purpose of providing
child care assistance.
‘‘(C) USE
OF
FUNDS; 
APPLICATION
OF
CHILD CARE AND DEVELOPMENT BLOCK GRANT
166
ACT.—Subsections (b) and (c) apply to amounts
received under this paragraph in the same man-
ner as such subsections apply to amounts re-
ceived by a State under this section.
‘‘(D) NO
MATCHING
REQUIREMENT.—No
matching requirement shall apply to amounts
paid under this paragraph for a fiscal year.’’;
(D) by redesignating paragraph (5) as
paragraph (7); and
(E) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) 
ADDITIONAL
GENERAL
ENTITLEMENT
GRANTS.—
‘‘(A) 
APPROPRIATION.—For 
additional
grants under paragraph (1), there is appro-
priated $1,000,000,000 for each of fiscal years
2003 through 2007. Amounts appropriated under
this subparagraph for a fiscal year shall be in
addition to amounts appropriated under para-
graph (3) for such fiscal year.
‘‘(B) ADDITIONAL GRANT.—In addition to
the grant paid to a State under paragraph (1)
for each of fiscal years 2003 through 2007, of the
amount available for additional grants under
subparagraph (A) for a fiscal year, the Secretary
167
shall pay the State an amount equal to the same
proportion of such amount as the proportion of
the State’s grant under paragraph (1) to the
amount appropriated under paragraph (3) for
such fiscal year.
‘‘(6) REQUIREMENT
FOR
GRANT
INCREASE.—
Notwithstanding paragraphs (1), (2), or (5), the ag-
gregate amount paid to a State under this section for
each of fiscal years 2003 through 2007 may not exceed
the aggregate amount paid to the State under this
section for fiscal year 2002 unless the State ensures
that the level of State expenditures for child care for
such fiscal year is not less than the level of State ex-
penditures for child care that were matched under a
grant made to the State under paragraph (2) or that
the State expended to meet its maintenance of effort
obligation under paragraph (2) for fiscal year 2002.’’.
(2) 
CONFORMING
AMENDMENT.—Section
1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by
striking ‘‘or 413(f)’’ and inserting ‘‘413(f), or
418(a)(4)(B)’’.
(b) APPLICABILITY OF STATE OR LOCAL HEALTH AND
SAFETY
STANDARDS
TO
OTHER
TANF CHILD
CARE
SPENDING.—Section 402(a) (42 U.S.C. 602(a)) is amended
by adding at the end the following:
168
‘‘(8) CERTIFICATION
OF
PROCEDURES
TO
EN-
SURE THAT CHILD CARE PROVIDERS COMPLY WITH
APPLICABLE STATE OR LOCAL HEALTH AND SAFETY
STANDARDS.—A certification by the chief executive of-
ficer of the State that procedures are in effect to en-
sure that any child care provider in the State that
provides services for which assistance is provided
under the State program funded under this part com-
plies with all applicable State or local health and
safety 
requirements 
as 
described 
in 
section
658E(c)(2)(F) of the Child Care and Development
Block Grant Act of 1990 (other than a relative ex-
cluded from the definition of ‘child care provider’ in
section 98.41(e) of title 45 of the Code of Federal Reg-
ulations (as in effect on June 1, 2002)).’’.
SEC. 104. STATE OPTION TO ASSIST LEGAL IMMIGRANT
FAMILIES.
(a) STATE OPTION.—
(1) IN GENERAL.—Section 403(c)(2) of the Per-
sonal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1613(c)(2)) is
amended by adding at the end the following:
‘‘(M) At State option, assistance, benefits,
or services under a State program funded under
169
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.).’’.
(2) CONFORMING AMENDMENT.—Section 408(e)
(42 U.S.C. 608(e)) is amended to read as follows:
‘‘(e) ELIGIBILITY OF CERTAIN ALIENS.—Except as
provided in subsection (f), at State option, a State may
provide assistance, benefits, or services to a qualified alien
(as defined in subsections (b) and (c) of section 431 of the
Personal Responsibility and Work Opportunity Reconcili-
ation Act of 1996 (8 U.S.C. 1641)) under the State program
funded under this part in the same manner and to the same
extent as a citizen of the United States would be provided
such assistance, benefits, or services.’’.
(b) ATTRIBUTION OF SPONSOR’S INCOME AND RE-
SOURCES TO ALIENS.—
(1) IN
GENERAL.—Section 408(f) (42 U.S.C.
608(f)) is amended—
(A) in the heading, by striking ‘‘NON-213A’’
and inserting ‘‘SPONSORED’’;
(B) by striking ‘‘The following’’ and all that
follows through the colon and inserting ‘‘The fol-
lowing rules shall apply in determining whether
an alien sponsored under section 213A of the Im-
migration and Nationality Act (and, at the op-
tion of the State, a non-213A alien) is eligible
170
for cash assistance under the State program
funded under this part, or in determining the
amount of such assistance to be provided to a
sponsored alien:’’;
(C) in paragraph (1)—
(i) in the matter preceding subpara-
graph (A), by striking ‘‘non-213A’’ and in-
serting ‘‘sponsored’’;
(ii) in subparagraph (B), by inserting
‘‘(or, a greater amount as determined by the
State)’’ before the period; and
(iii) in the heading of subparagraph
(C), by striking ‘‘NON-213A’’ and inserting
‘‘SPONSORED’’;
(D) by striking paragraph (5) and insert-
ing the following:
‘‘(5) EXCEPTIONS.—This subsection shall not
apply to an alien who is—
‘‘(A) a minor child if the sponsor of the
alien or any spouse of the sponsor is a parent
of the alien child; or
‘‘(B) described in subsection (e) or (f) of sec-
tion 421 of the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1631).’’; and
171
(E) by adding at the end the following:
‘‘(7) INAPPLICABILITY TO FAMILY MEMBERS WHO
ARE NOT SPONSORED ALIENS.—Income and resources
of a sponsor which are deemed under this subsection
to be the income and resources of any alien indi-
vidual in a family shall not be considered in deter-
mining the need of other family members except to the
extent such income or resources are actually available
to such other family members.
‘‘(8) RULE OF CONSTRUCTION.—For purposes of
section 421 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C.
1631), the State program funded under this part is
not a Federal means-tested public benefits program.’’.
(2) CONFORMING AMENDMENTS.—Section 423(d)
of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1183a note) is
amended by adding at the end the following:
‘‘(12) Assistance, benefits, or services under part
A of title IV of the Social Security Act except for cash
assistance provided to a sponsored alien who is sub-
ject to deeming pursuant to section 408(f) of that
Act.’’.
(c) STATE AUTHORITY TO PROVIDE STATE AND LOCAL
PUBLIC BENEFITS FOR CERTAIN ALIENS.—Section 411(d)
172
of the Personal Responsibility and Work Opportunity Rec-
onciliation Act of 1996 (8 U.S.C. 1621(d)) is amended—
(1) in the heading, by inserting ‘‘AND OTHER’’
before ‘‘ALIENS’’; and
(2) by inserting ‘‘or who otherwise is not a
qualified alien (as defined in subsections (b) and (c)
of section 431)’’ after ‘‘United States’’.
SEC. 105. USE OF FUNDS.
(a) CLARIFICATION OF AUTHORITY OF STATES TO
USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS TO
PROVIDE TANF BENEFITS AND SERVICES.—Section 404(e)
(42 U.S.C. 604(e)) is amended to read as follows:
‘‘(e) AUTHORITY TO CARRY OVER CERTAIN AMOUNTS
FOR BENEFITS OR SERVICES OR FOR FUTURE CONTIN-
GENCIES.—A State or tribe may use a grant made to the
State or tribe under this part for any fiscal year to provide,
without fiscal year limitation, any benefit or service that
may be provided under the State or tribal program funded
under this part.’’.
(b) CLARIFICATION OF APPLICATION OF CAP ON AD-
MINISTRATIVE
EXPENDITURES.—Section 404(b)(1) (42
U.S.C. 604(b)(1)) is amended by inserting ‘‘(determined
without regard to any amounts transferred under subsection
(d))’’ after ‘‘of the grant’’.
173
(c) ELIMINATION OF TRUST REQUIREMENT FOR INDI-
VIDUAL DEVELOPMENT ACCOUNTS.—Section 404(h)(3)(A)
(42 U.S.C. 604(h)(3)(A)) is amended by striking ‘‘a trust
created or organized in the United States and’’.
(d) AUTHORITY TO TRANSFER TANF FUNDS TO
CARRY OUT AN ACCESS TO JOBS PROJECT OR A REVERSE
COMMUTE
PROJECT.—Section 
404(d)(1) 
(42 
U.S.C.
604(d)(1)) is amended by adding at the end the following:
‘‘(C) An access to jobs project or a reverse
commute project under a grant made under sec-
tion 3037 of the Transportation Equity Act for
the 21st Century (49 U.S.C. 5309 note).’’.
(e) STATE OPTION TO ESTABLISH POSTSECONDARY
EDUCATION PROGRAM.—Section 404 (42 U.S.C. 604) is
amended by adding at the end the following:
‘‘(l) AUTHORITY
TO
ESTABLISH
POSTSECONDARY
EDUCATION PROGRAM.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), a
State to which a grant is made under section 403
may use the grant to establish a program under
which an eligible participant (as defined in para-
graph (3)) may be provided assistance and other ben-
efits as determined by the State, including support
services described in paragraph (5).
174
‘‘(2) NO FEDERAL FUNDS FOR TUITION.—A State
may not use Federal funds provided under a grant
made under section 403 to pay tuition for an eligible
participant in a program established under this sub-
section.
‘‘(3) DEFINITION OF ELIGIBLE PARTICIPANT.—
‘‘(A) IN GENERAL.—In this subsection, the
term ‘eligible participant’ means an individual
eligible for assistance, benefits, or services under
the State program funded under this part and
satisfies the following requirements:
‘‘(i) The individual is enrolled in a
postsecondary 2- or 4-year degree program.
‘‘(ii) Enrollment in the postsecondary
program is a requirement of the individ-
ual’s individual responsibility plan under
section 408(b).
‘‘(iii) During the first 24 months that
the individual participates in the postsec-
ondary program, the individual engages in
a combination of educational activities in
connection with a course of study, training,
study time, employment, or work experience
for an average of not less than 24 hours (20
175
hours, in the case of an individual described
in section 407(c)(2)(B)) per week.
‘‘(iv) After the first 24 months of the
individual’s participation in the postsec-
ondary program, the individual—
‘‘(I) works not less than an aver-
age of 15 hours per week (in addition
to school and study time, and with pri-
ority for hours engaged in work related
to the individual’s course of study); or
‘‘(II) engages in a combination of
educational activities in connection
with a course of study, training, study
time, employment, or work experience
for an average of not less than 30
hours (20 hours, in the case of an indi-
vidual 
described 
in 
section
407(c)(2)(B)) per week.
‘‘(v) During the period the individual
participates in the postsecondary program,
the individual maintains satisfactory aca-
demic progress, as defined by the institution
operating the undergraduate postsecondary
program in which the individual is en-
rolled.
176
‘‘(B) DETERMINATION
OF
HOURS.—For
purposes of determining hours per week under
clause (ii) or (iii) of subparagraph (A), a State
may not count study time of less than 1 hour for
every hour of class time or more than 2 hours for
every hour of class time.
‘‘(4) REQUIRED TIME PERIODS FOR COMPLETION
OF DEGREE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), an individual participating in a pro-
gram established under this subsection shall be
required to complete the requirements of a degree
program within the normal timeframe for full
time students seeking the particular degree.
‘‘(B) EXCEPTION.—For good cause, the
State may allow an individual to complete their
degree requirements within a period not to ex-
ceed 11⁄2 times the normal timeframe established
under subparagraph (A) (unless further modi-
fication is required by the Americans with Dis-
abilities Act of 1990 (42 U.S.C. 12101 et seq.),
or section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794)) and may modify the require-
ments applicable to an individual participating
in the program. For purposes of the preceding
177
sentence, good cause includes the case of an indi-
vidual with 1 or more significant barriers to
normal participation, as determined by the
State, such as the need to care for a family mem-
ber with special needs.
‘‘(5) SUPPORT SERVICES DESCRIBED.—For pur-
poses of paragraph (1), the support services described
in this paragraph include any or all of the following
during the period the eligible participant is in the
program established under this subsection:
‘‘(A) Child care.
‘‘(B) Transportation services.
‘‘(C) Payment for books and supplies.
‘‘(D) Other services provided under policies
determined by the State to ensure coordination
and lack of duplication with other programs
available to provide support services.’’.
(f) SUPPLEMENTAL HOUSING BENEFITS.—Section 404
(42 U.S.C. 604), as amended by subsection (d), is amended
by adding at the end the following:
‘‘(m) USE OF FUNDS FOR SUPPLEMENTAL HOUSING
BENEFITS.—
‘‘(1) IN GENERAL.—A State to which a grant is
made under section 403 may use the grant to provide
supplemental housing benefits (as defined in para-
178
graph (4)) in order to carry out the purposes specified
in section 401(a).
‘‘(2) NOT
CONSIDERED
ASSISTANCE.—Supple-
mental housing benefits (as so defined) shall not for
any purpose, be considered assistance under the State
program funded under this part.
‘‘(3) LIMITATION ON USE OF FUNDS.—A State
may not use any part of the funds made available
under a grant made under section 403 to supplant ex-
isting State expenditures on housing-related pro-
grams. Notwithstanding the preceding sentence, a
State may use such funds to supplement such State
expenditures.
‘‘(4) DEFINITION
OF
SUPPLEMENTAL
HOUSING
BENEFITS.—In this subsection, the term ‘supple-
mental housing benefits’ means payments made to, or
on behalf of, an individual with significant annual
earnings (as defined by the State) to reduce or reim-
burse the costs incurred by the individual for housing
accommodations.
‘‘(n) STATE AUTHORITY TO DEFINE MINOR HOUSING
REHABILITATION COSTS.—A State to which a grant is
made under section 403 may use the grant to provide
grants, loans, or to otherwise pay the costs of minor reha-
bilitation of housing owned or rented by individuals eligible
179
for assistance under the State program funded under this
part, consistent with a definition of minor housing rehabili-
tation adopted by the State and incorporated into the State
plan required under section 402(a).’’.
SEC. 106. DEFINITION OF ASSISTANCE.
(a) DEFINITION.—Section 419 (42 U.S.C. 619) is
amended by adding at the end the following:
‘‘(6) ASSISTANCE.—
‘‘(A) IN
GENERAL.—The term ‘assistance’
means payment, by cash, voucher, or other
means, to or for an individual or family for the
purpose of meeting a subsistence need of the in-
dividual or family (including food, clothing,
shelter, and related items, but not including costs
of transportation, child care, or supplemental
housing 
benefits 
(as 
defined 
in 
section
404(m)(4)).
‘‘(B) EXCEPTION.—The term ‘assistance’
does not include a payment described in sub-
paragraph (A) to or for an individual or family
on a short-term, nonrecurring basis (as defined
by the State in accordance with regulations pre-
scribed by the Secretary) or any other benefit or
service excluded from the definition of assistance
under section 260.31 of title 45 of the Code of
180
Federal Regulations (as in effect on June 1,
2002).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is
amended by striking ‘‘assistance’’ and inserting
‘‘aid’’.
(2) Section 404(f) (42 U.S.C. 604(f)) is amended
by striking ‘‘assistance’’ and inserting ‘‘benefits or
services’’.
(3) 
Section 
408(a)(5)(B)(i) 
(42 
U.S.C.
608(a)(5)(B)(i)) is amended in the heading by strik-
ing ‘‘ASSISTANCE’’ and inserting ‘‘AID’’.
(4) Section 5(g)(2)(D) of the Food Stamp Act of
1977 (7 U.S.C. 2014(g)(2)(D)) is amended—
(A) by striking ‘‘If the vehicle allowance’’
and inserting the following:
‘‘(i) IN GENERAL.—If the vehicle allow-
ance’’; and
(B) by adding at the end the following:
‘‘(ii) DEFINITION OF ASSISTANCE.—In
clause (i), the term ‘assistance’ shall have
the meaning given such term in section
260.31 of title 45 of the Code of Federal
Regulations, as in effect on June 1, 2002.’’.
182
(A) by inserting ‘‘preceding’’ before ‘‘fiscal
year’’; and
(B) by striking ‘‘for fiscal years 1997
through 2002,’’.
SEC. 108. FUNDING FOR FAMILIES ASSISTED BY A TERRI-
TORY PROGRAM.
(a) INCREASE IN MANDATORY CEILING AMOUNT.—
Section 1108(c)(4) (42 U.S.C. 1308(c)(4)) is amended—
(1) 
in 
subparagraph 
(A), 
by 
striking
‘‘$107,255,000’’ and inserting ‘‘$109,936,375’’;
(2) 
in 
subparagraph 
(B), 
by 
striking
‘‘$4,686,000’’ and inserting ‘‘$4,803,150’’;
(3) 
in 
subparagraph 
(C), 
by 
striking
‘‘$3,554,000’’ and inserting ‘‘$3,642,850’’; and
(4) 
in 
subparagraph 
(D), 
by 
striking
‘‘$1,000,000’’ and inserting ‘‘$1,250,000’’.
(b) REAUTHORIZATION OF MATCHING GRANTS.—Sec-
tion 1108(b)(2) (42 U.S.C. 1308(b)(2)) is amended by strik-
ing ‘‘fiscal years 1997 through 2002’’ and inserting ‘‘each
of fiscal years 2003 through 2007’’.
SEC. 109. REPEAL OF FEDERAL LOAN FUND FOR STATE
WELFARE PROGRAMS.
(a) REPEAL.—Section 406 (42 U.S.C. 606) is repealed.
(b) CONFORMING AMENDMENTS.—
183
(1) Section 409(a) (42 U.S.C. 609(a)) is amend-
ed by striking paragraph (6).
(2) Section 412 (42 U.S.C. 612) is amended by
striking subsection (f) and redesignating subsections
(g) through (i) as subsections (f) through (h), respec-
tively.
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is
amended by striking ‘‘406,’’.
SEC. 110. SOCIAL SERVICES BLOCK GRANT.
(a) RESTORATION OF AUTHORITY TO TRANSFER UP
TO 10 PERCENT OF TANF FUNDS.—
(1) IN GENERAL.—Section 404(d)(2) (42 U.S.C.
604(d)(2)) is amended to read as follows:
‘‘(2) LIMITATION ON AMOUNT TRANSFERABLE TO
TITLE XX PROGRAMS.—A State may use not more
than 10 percent of the amount of any grant made to
the State under section 403(a) for a fiscal year to
carry out State programs pursuant to title XX.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) applies to amounts made available for
fiscal year 2003 and each fiscal year thereafter.
(b) FUNDING
FOR
FISCAL
YEAR
2005.—Section
2003(c)(11) (42 U.S.C. 1397b(c)(11)) is amended by insert-
ing ‘‘, except that, with respect to fiscal year 2005, the
amount shall be $1,952,000,000’’ after ‘‘thereafter’’.
184
SEC. 111. TECHNICAL CORRECTIONS.
(a) Section 404 (42 U.S.C. 604) is amended by strik-
ing subsection (c).
(b) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is amended
by inserting a comma after ‘‘appropriate’’.
(c) 
Section 
411(a)(1)(A)(ii)(III) 
(42 
U.S.C.
611(a)(1)(A)(ii)(III)) is amended by striking the last close
parenthesis.
(d) Section 413(j)(2)(A) (42 U.S.C. 613(j)(2)(A)) is
amended by striking ‘‘section’’ and inserting ‘‘sections’’.
TITLE II—WORK
SEC. 201. UNIVERSAL ENGAGEMENT.
(a) MODIFICATION OF INDIVIDUAL RESPONSIBILITY
PLANS.—Section 408(b) (42 U.S.C. 608(b)) is amended to
read as follows:
‘‘(b) INDIVIDUAL RESPONSIBILITY PLANS.—
‘‘(1) ASSESSMENT.—The State agency respon-
sible for administering the State program funded
under this part shall make an initial screening and
assessment of the following for each family with an
adult or minor child head of household receiving as-
sistance:
‘‘(A) The education obtained, skills, prior
work experience, work readiness, and barriers to
work of each adult or minor child head of house-
hold recipient of assistance in the family who
185
has attained age 18 or who has not completed
high school or obtained a certificate of high
school equivalency, and is not attending sec-
ondary school.
‘‘(B) The work support, work readiness, and
family support services for which families receiv-
ing assistance are eligible.
‘‘(C) The well-being of the children in the
family and, where appropriate, activities or re-
sources to improve the well-being of the children.
‘‘(2) CONTENTS OF PLANS.—
‘‘(A) IN
GENERAL.—On the basis of the
screening and assessment required under para-
graph (1) for a family with an adult or minor
child head of household receiving assistance
under the State program funded under this part,
the State agency, in consultation with the fam-
ily, shall develop an individual responsibility
plan that—
‘‘(i) establishes for each adult and
minor child head of household recipient a
self-sufficiency plan that specifies activities
described in the State plan submitted pur-
suant to section 402, including work activi-
ties specified in section 407(d), as appro-
186
priate, that are designed to assist the family
in achieving their maximum degree of self-
sufficiency, and that provides for the ongo-
ing participation of the adult or minor
child head of household recipient in the ac-
tivities;
‘‘(ii) sets forth the obligations of the
adult or minor child head of household re-
cipient which may include registering for
work and commencing a search for employ-
ment for a specified number of hours each
week;
‘‘(iii) requires, at a minimum, each
such recipient to participate in activities in
accordance with the individual responsi-
bility plan;
‘‘(iv) sets forth the appropriate sup-
portive services the State intends to provide
for the family;
‘‘(v) establishes for the family a plan
that addresses the issue of child well-being
and, when appropriate, adolescent well-
being, and that may include services such
as domestic violence counseling, mental
health referrals, and parenting courses; and
187
‘‘(vi) includes a section designed to as-
sist the family by informing the family of
the work support assistance for which the
family may be eligible, including (but not
limited to)—
‘‘(I) the food stamp program es-
tablished under the Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.);
‘‘(II) the medicaid program fund-
ed under title XIX;
‘‘(III) the State children’s health
insurance program funded under title
XXI;
‘‘(IV) child care funded under the
Child Care Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.);
‘‘(V) the earned income tax credit
under section 32 of the Internal Rev-
enue Code of 1986;
‘‘(VI) the low-income home energy
assistance program established under
the Low-Income Home Energy Assist-
ance Act of 1981 (42 U.S.C. 8621 et
seq.);
188
‘‘(VII) the special supplemental
nutrition program for women, infants,
and children established under section
17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786);
‘‘(VIII) programs conducted under
the Workforce Investment Act of 1998
(29 U.S.C. 2801 et seq.); and
‘‘(IX) low-income housing assist-
ance programs.
‘‘(3) REVIEW.—
‘‘(A) REGULAR REVIEW.—The State agency
shall—
‘‘(i) monitor the participation of each
adult recipient in the activities specified in
the individual responsibility plan, and reg-
ularly review the progress of the family to-
ward self-sufficiency; and
‘‘(ii) upon such a review, revise the
plan and activities required under the plan
as the State deems appropriate in consulta-
tion with the family.
‘‘(B) PRIOR TO THE IMPOSITION OF A SANC-
TION.—The State agency shall—
189
‘‘(i) review the individual responsi-
bility plan prior to imposing a sanction
against the adult recipient or the family for
failure to comply with a requirement of the
plan or the State program funded under
this part; and
‘‘(ii) make a good faith effort (as de-
fined by the State) to consult with the fam-
ily as part of such review.
‘‘(4) TIMING.—With respect to a family, the
State shall comply with this subsection—
‘‘(A) in the case of a family that, as of Oc-
tober 1, 2003, is not receiving assistance from
the State program funded under this part, not
later than 60 days after the family first receives
assistance on the basis of the most recent appli-
cation for the assistance; and
‘‘(B) in the case of a family that, as of such
date, is receiving the assistance, not later than
September 30, 2004.
‘‘(5) RULE
OF
INTERPRETATION.—Nothing in
this subsection shall preclude a State from requiring
participation in work and any other activities the
State deems appropriate for helping families achieve
self-sufficiency and improving child well-being.’’.
190
(b) IMPLEMENTATION.—
(1) DEVELOPMENT OF MODEL SCREENING AND
ASSESSMENT TOOLS.—
(A) IN GENERAL.—The Secretary of Health
and Human Services shall develop or identify
model screening and assessment tools to assist
States (at their option) in identifying an indi-
vidual’s barriers to employment or program
compliance.
(B) 
CONSULTATION.—The 
Secretary 
of
Health and Human Services shall develop or
identify the model tools required under para-
graph (1) in consultation with individuals and
groups with expertise in circumstances such as
physical or mental impairments (including
learning disabilities), substance abuse, limited
English proficiency, domestic violence, or the
need to care for a family member with a dis-
ability.
(C) DISSEMINATION.—The Secretary of
Health and Human Services shall disseminate
the tools developed or identified under this para-
graph to States (as defined in section 1101(a)(1)
of the Social Security Act (42 U.S.C. 1301(a)(1))
for purposes of part A of title IV of such Act)
191
and Indian tribes with programs funded under
part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.).
(2) GRANTS
TO
ASSIST
WITH
IMPLEMENTA-
TION.—Section 403(a) (42 U.S.C. 603(a)) is amended
by adding at the end the following:
‘‘(6) GRANTS TO ASSIST WITH IMPLEMENTATION
OF UNIVERSAL ENGAGEMENT REQUIREMENTS.—
‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive from the Secretary, for
each of fiscal years 2003 through 2006, a grant
under this paragraph to carry out any or all of
the following activities:
‘‘(i) To provide training for super-
visory and non-supervisory staff of the
State or local agency with responsibility for
the administration of the State program
funded under this part, including (but not
limited to) training that is designed to im-
prove the ability of such staff to identify
barriers to employment and indicators of
child well-being, and to improve the under-
standing of such staff of program require-
ments and services funded under this part
and of nondiscrimination and employment
192
laws for families receiving assistance under
the State program.
‘‘(ii) To improve the communication of
information concerning program require-
ments to recipients of, and applicants for,
assistance, including services related to
communicating such information to fami-
lies with a primary language other than
English.
‘‘(iii) To improve the quality of the
agency workforce.
‘‘(iv) To improve the coordination of
support programs for low-income families.
‘‘(v) To conduct outreach to promote
the enrollment of eligible families in such
programs.
‘‘(vi) To establish advisory review pan-
els to advise States with respect to improv-
ing the State’s policies and procedures for
assisting individuals under the State pro-
gram funded under this part who have bar-
riers to work in accordance with the re-
quirements of subparagraph (C).
‘‘(B) AMOUNT OF GRANT.—Of the amount
appropriated under subparagraph (E) for a fis-
193
cal year, the Secretary shall pay each State an
amount equal to the same proportion of such
amount as the proportion of the number of fami-
lies receiving assistance under the State program
funded under this part to all such families for
all States.
‘‘(C) REQUIREMENTS
FOR
ADVISORY
RE-
VIEW PANELS.—A State that uses funds provided
under a grant made under this paragraph to es-
tablish an advisory review panel shall establish
such panels consistent with the following:
‘‘(i) MEMBERSHIP.—
‘‘(I) IN GENERAL.—The advisory
review panel shall consist of the fol-
lowing:
‘‘(aa) At least 1 member
shall be a representative of the
State or local agency responsible
for administering the State pro-
gram funded under this part.
‘‘(bb) At least 1 member shall
be an employer.
‘‘(cc) At least 1 member shall
be a representative of other State
or local agencies with expertise in
194
providing services to individuals
with disabilities or other barriers
to work, such as vocational reha-
bilitation 
agencies, 
the 
State
workforce investment board estab-
lished under section 111 of the
Workforce Investment Act of 1998
(29 U.S.C. 2821), or mental
health agencies.
‘‘(dd) At least 1 member
shall be a parent with a barrier to
work who is receiving, or who has
ceased receiving, cash assistance
or support services under the
State program funded under this
part.
‘‘(ee) At least 1 member shall
be an individual or representative
of an entity with expertise in de-
signing and implementing policies
and programs to successfully serve
individuals with barriers to work.
‘‘(ff) At least 1 member shall
be a representative of an organi-
zation that represent recipients of
196
under the State program funded under
this part.
‘‘(ii) DUTIES AND USE OF FUNDS.—
‘‘(I) IN GENERAL.—In seeking to
improve a State’s policies and proce-
dures for assisting individuals with
barriers to work, an advisory review
panel established with funds paid
under a grant made this paragraph
may hold meetings, hire support staff,
and enter into contracts for inde-
pendent evaluations.
‘‘(II) SITE VISITS; PUBLIC HEAR-
INGS.—To the extent it determines ap-
propriate, an advisory review panel es-
tablished under this paragraph may—
‘‘(aa) conduct site visits to
State or local agencies responsible
for administering the State pro-
gram funded under this part; and
‘‘(bb) hold public hearings.
‘‘(III) EXPENSES.—At the option
of the State, an advisory review panel
established under this paragraph may
reimburse a panel member who is a re-
197
cipient, or a former recipient, of assist-
ance under the State program funded
under this part for reasonable travel
expenses associated with the member’s
participation on the panel.
‘‘(IV) RULE OF CONSTRUCTION.—
‘‘(aa) IN GENERAL.—Nothing
in this paragraph shall be con-
strued as authorizing an advisory
review panel established under
this paragraph to resolve com-
plaints filed by individuals or en-
tities related to possible violations
of laws protecting civil rights, to
review specific individual’s claims
against the State agency respon-
sible for administering the State
program funded under this part,
or to become involved in advising
the State as to the specific provi-
sions that should be included in a
specific individual’s individual
responsibility plan under section
408(b).
198
‘‘(bb) RECIPIENT PARTICIPA-
TION.—Nothing in item (aa) shall
prevent an individual who is a
recipient, or a former recipient of
assistance under the State pro-
gram funded under this part from
providing the advisory review
panel with information that could
help inform the panel’s delibera-
tions 
regarding 
improvements
that may be needed in the State’s
policies and procedures to better
meet the needs of individuals and
families with barriers to employ-
ment.
‘‘(iii) REPORTS.—An advisory review
panel established under this paragraph
shall submit to the Secretary at least 1 re-
port that identifies areas in the State where
improvement is needed with respect to the
State’s policies and procedures for assisting
individuals under the State program funded
under this part who have barriers to work.
‘‘(D) INAPPLICABILITY OF SECTION 404.—A
grant made under this paragraph shall not be
199
considered a grant made under this section for
purposes of section 404.
‘‘(E) APPROPRIATIONS.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there is appropriated to
carry out this paragraph, $120,000,000 for the
period of fiscal years 2003 through 2006.’’.
(3) CONSULTATION.—The Secretary of Health
and Human Services shall consult with representa-
tives of the National Governors Association, the Amer-
ican Public Human Services Association, and the Na-
tional Conference of State Legislatures with respect to
implementation of the universal engagement require-
ments under the temporary assistance to needy fami-
lies program under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.), as added by the
amendments made by this section, including—
(A) the development of regulations to carry
out the amendments made by this section;
(B) the provision of technical assistance to
States (in participation with the organizations
the Secretary is required to consult with under
this paragraph) regarding compliance with such
requirements; and
200
(C) the model screening tools required to be
developed under paragraph (1).
(4) GAO EVALUATION AND REPORT.—Not later
than September 30, 2005, the Comptroller General of
the United States shall submit a report to the Com-
mittee on Ways and Means of the House of Represent-
atives and the Committee on Finance of the Senate
evaluating the implementation of the universal en-
gagement provisions under the temporary assistance
to needy families program under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.), as
added by the amendments made by this section.
(c) RULES OF CONSTRUCTION.—Nothing in this sec-
tion or the amendments made by this section shall be
construed—
(1) as establishing a private right or cause of ac-
tion against a State for failure to comply with the re-
quirements imposed under this section or the amend-
ments made by this section; or
(2) as limiting claims that may be available
under other Federal or State laws.
SEC. 202. WORK PARTICIPATION REQUIREMENTS.
(a) MINIMUM PARTICIPATION RATES.—The table set
forth in section 407(a)(1) (42 U.S.C. 607(a)(1)) is
amended—
201
(1) in the item relating to fiscal year 2002—
(A) by striking ‘‘or thereafter’’ and insert-
ing ‘‘or 2003’’; and
(B) by striking the period; and
(2) by adding at the end the following:
‘‘2004 ......................................................................
2005 ......................................................................
2006 ......................................................................
2007 or thereafter ................................................
70.’’.
(b) ELIMINATION OF SEPARATE WORK PARTICIPATION
RATE FOR 2-PARENT FAMILIES.—Section 407 (42 U.S.C.
607) is amended—
(1) in subsection (a)—
(A) in the heading of paragraph (1), by
striking ‘‘ALL FAMILIES’’ and inserting ‘‘IN GEN-
ERAL’’; and
(B) by striking paragraph (2);
(2) in subsection (b)—
(A) by striking paragraph (2);
(B) in paragraph (4), by striking ‘‘para-
graphs (1)(B) and (2)(B)’’ and inserting ‘‘para-
graph (1)(B)’’; and
(C) in paragraph (5), by striking ‘‘rates’’
and inserting ‘‘rate’’; and
(3) in subsection (c)—
(A) in paragraph (1)—
202
(i) by striking ‘‘GENERAL RULES.—’’
and all that follows through ‘‘For purposes’’
in subparagraph (A) and inserting ‘‘GEN-
ERAL RULE.—For purposes’’; and
(ii) by striking subparagraph (B); and
(B) in paragraph (2)(D)—
(i) by striking ‘‘paragraphs (1)(B)(i)
and (2)(B) of subsection (b)’’ and inserting
‘‘subsection (b)(1)(B)(i)’’; and
(ii) by striking ‘‘and in 2-parent fami-
lies, respectively,’’.
(c) MAKING WORK PAY.—
(1) REPLACEMENT
OF
CASELOAD
REDUCTION
CREDIT WITH EMPLOYMENT CREDIT.—
(A) EMPLOYMENT
CREDIT
TO
REWARD
STATES
IN
WHICH
FAMILIES
LEAVE
WELFARE
FOR WORK; ADDITIONAL CREDIT FOR FAMILIES
WITH HIGHER EARNINGS.—
(i) IN GENERAL.—Section 407(a) (42
U.S.C. 607(a)), as amended by subsection
(b)(1)(B), is further amended by adding at
the end the following:
‘‘(2) EMPLOYMENT CREDIT.—
‘‘(A) IN
GENERAL.—In consultation with
the States, and subject to subparagraph (C), the
203
Secretary shall prescribe regulations for reducing
the minimum participation rate otherwise appli-
cable to a State under this subsection for a fiscal
year by the number of percentage points in the
employment credit for the State for the fiscal
year, as determined by the Secretary—
‘‘(i) using information in the National
Directory of New Hires; and
‘‘(ii) with respect to a recipient of as-
sistance under the State program funded
under this part who is placed with an em-
ployer whose hiring information is not re-
ported to the National Directory of New
Hires, using quarterly wage information
submitted by the State to the Secretary not
later than such date as the Secretary shall
prescribe in regulations.
‘‘(B) CALCULATION OF CREDIT.—
‘‘(i) IN
GENERAL.—The employment
credit for a State for a fiscal year is an
amount equal to—
‘‘(I)(aa) twice the unduplicated
number of families that include an
adult recipient of assistance under the
State program funded under this part,
204
that ceased to receive such assistance
for at least a 2-month period during
the applicable period (as defined in
clause (iii)), that did not receive assist-
ance under a separate State-funded
program during such 2-month period,
that were employed during the cal-
endar quarter immediately succeeding
the quarter in which the assistance
under the State program funded under
this part ceased, and that are not oth-
erwise included in the determination of
a credit against the minimum partici-
pation rate otherwise applicable to a
State under this subsection for a fiscal
year, plus;
‘‘(bb) at State option, the number
of families that received a non-
recurring short-term benefit under the
State program funded under this part
during the applicable period (as so de-
fined), that were employed during the
calendar quarter immediately suc-
ceeding the quarter in which the non-
recurring short-term benefit was so re-
205
ceived, and that earned at least $1000
during the applicable period (as so de-
fined); divided by
‘‘(II) the average monthly number
of families that include an adult who
received assistance under the State pro-
gram funded under this part during
the applicable period (as so defined),
plus, if the State elected the option
under subclause (I)(bb), the number of
families that received a nonrecurring
short-term benefit under the State pro-
gram funded under this part during
the applicable period (as so defined).
‘‘(ii) SPECIAL RULE FOR FORMER RE-
CIPIENTS WITH HIGHER EARNINGS.—In cal-
culating the employment credit for a State
for a fiscal year, a family that, with respect
to the quarter in which the family’s earn-
ings was examined during the preceding fis-
cal year, earned at least 33 percent of the
average quarterly earnings in the State (de-
termined on the basis of State unemploy-
ment data) shall be considered to be 1.5
families.
206
‘‘(iii) DEFINITION OF APPLICABLE PE-
RIOD.—For purposes of this subparagraph,
the term ‘applicable period’ means the most
recent 4 quarters for which data are avail-
able to the Secretary providing information
on the work status of—
‘‘(I) individuals in the quarter
after the individuals ceased receiving
assistance under the State program
funded under this part; and
‘‘(II) at State option, individuals
in the quarter after the individuals re-
ceived a short-term, non recurring ben-
efit.
‘‘(C) LIMITATION.—
‘‘(i) IN GENERAL.—Except with respect
to a State described in clause (ii), the min-
imum participation rate applicable to fam-
ilies receiving assistance under the State
program funded under this part shall not
have the effect of being reduced through the
application of the employment credit deter-
mined under subparagraph (B)(i)(I)(aa) or
the inclusion, at State option, of individ-
uals who receive substantial child care or
207
transportation assistance in the determina-
tion of the minimum participation rate
under paragraph (1), below—
‘‘(I) 20 percent, in the case of fis-
cal year 2004;
‘‘(II) 30 percent, in the case of fis-
cal year 2005;
‘‘(III) 40 percent, in the case of
fiscal year 2006; or
‘‘(IV) 50 percent, in the case of
fiscal year 2007.
‘‘(ii) STATE
DESCRIBED.—Clause (i)
shall not apply to a State that meets at
least 2 of the criteria for being considered a
needy State under section 403(b)(3)(A).
‘‘(D) 
QUARTERLY
REPORTS.—Not 
later
than 6 months after the end of a fiscal year
quarter, the Secretary shall issue a report to
Congress and each State for the preceding quar-
ter that includes information regarding the per-
formance of each State on the factors used to de-
termine the employment credit for a State under
this paragraph during that quarter, including
any option selected by the State.’’.
208
(ii) AUTHORITY OF SECRETARY TO USE
INFORMATION IN NATIONAL DIRECTORY OF
NEW
HIRES.—Section 453(i) (42 U.S.C.
653(i)) is amended by adding at the end the
following:
‘‘(5) CALCULATION OF EMPLOYMENT CREDIT FOR
PURPOSES OF DETERMINING STATE WORK PARTICIPA-
TION RATES UNDER TANF.—The Secretary may use
the information in the National Directory of New
Hires for purposes of calculating State employment
credits pursuant to section 407(a)(2).’’.
(B) ELIMINATION OF CASELOAD REDUCTION
CREDIT.—Section 407(b) (42 U.S.C. 607(b)), as
amended by subsection (b)(2)(A), is further
amended by striking paragraph (3) and redesig-
nating paragraphs (4) and (5) as paragraphs
(2) and (3), respectively.
(2) STATES TO RECEIVE PARTIAL CREDIT TO-
WARD WORK PARTICIPATION RATE FOR RECIPIENTS
ENGAGED
IN
PART-TIME
WORK.—Section 407(c)(1)
(42 U.S.C. 607(c)(1)), as amended by subsection
(b)(3)(A), is further amended by adding at the end
the following flush sentence: ‘‘For purposes of sub-
section (b)(1)(B)(i), a family that does not include a
recipient who is participating in work activities for
209
an average of 30 hours per week during a month but
includes a recipient who is participating in activities
described in paragraph (1), (2), (3), (4), (5), (6), (7),
(8), (12), or 13(A) of subsection (d) during the month
for an average of at least 50 percent of the minimum
average number of hours per week specified for the
month in the table set forth in this paragraph shall
be counted as a percentage of a family that includes
an adult or minor child head of household who is en-
gaged in work for the month, which percentage shall
be the number of hours for which the recipient par-
ticipated in such activities during the month divided
by the number of hours of such participation required
of the recipient under this section for the month.’’.
(3) TANF RECIPIENTS WHO QUALIFY FOR SUP-
PLEMENTAL
SECURITY
INCOME
BENEFITS
REMOVED
FROM WORK PARTICIPATION RATE CALCULATION FOR
ENTIRE YEAR.—Section 407(b)(1)(B)(ii) (42 U.S.C.
607(b)(1)(B)(ii)) is amended—
(A) in subclause (I), by inserting ‘‘who has
not become eligible for supplemental security in-
come benefits under title XVI during the fiscal
year’’ before the semicolon; and
(B) in subclause (II), by inserting ‘‘, and
that do not include an adult or minor child head
210
of household who has become eligible for supple-
mental security income benefits under title XVI
during the fiscal year’’ before the period.
(4) STATE OPTION TO INCLUDE RECIPIENTS OF
SUBSTANTIAL CHILD CARE OR TRANSPORTATION AS-
SISTANCE IN WORK PARTICIPATION RATE.—
(A) IN
GENERAL.—Section 407(a)(1) (42
U.S.C. 607(a)(1)) is amended by inserting ‘‘(in-
cluding, at the option of the State, a family that
includes an adult who is receiving substantial
child care or transportation assistance (as de-
fined by the Secretary, in consultation with di-
rectors of State programs funded under this part,
which definition shall specify for each type of as-
sistance a threshold which is a dollar value or a
length of time over which the assistance is re-
ceived, and take into account large one-time
transition payments) except any family taken
into account under paragraph (2)(B)(i)(I))’’ be-
fore the colon.
(B) DATA COLLECTION AND REPORTING.—
Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is
amended in the matter preceding clause (i) by
inserting ‘‘(including any family with respect to
whom the State has exercised its option under
211
section 407(a)(1) or 407(a)(2)(B)(i)(I)(bb)’’ after
‘‘assistance’’.
(5) EFFECTIVE DATE.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), the amendments made by this
subsection shall take effect on October 1, 2003.
(B) STATE OPTION TO PHASE-IN REPLACE-
MENT OF CASELOAD REDUCTION CREDIT WITH
EMPLOYMENT CREDIT AND DELAY APPLICABILITY
OF OTHER PROVISIONS.—A State may elect to
have the amendments made by subsections (a)(2),
(b), (c), and (d) not apply to the State program
funded under part A of title IV of the Social Se-
curity Act until October 1, 2004, and if the State
makes the election, then, in determining the par-
ticipation rate of the State for purposes of sec-
tions 407 and 409(a)(3) of the Social Security
Act for fiscal year 2004, the State shall be cred-
ited with 1⁄2 of the reduction in the rate that
would otherwise result from applying section
407(a)(2) of the Social Security Act (as added
by subsection (c)(1)(A)(i)) to the State for fiscal
year 2004 and 1⁄2 of the reduction in the rate
that would otherwise result from applying sec-
212
tion 407(b)(3) of the Social Security Act to the
State for fiscal year 2004.
(d) INCREASE IN NUMBER OF HOURS REQUIRED FOR
WORK-RELATED
ACTIVITIES.—Section 
407(c)(1) 
(42
U.S.C. 607(c)(1)), as amended by subsection (b)(3), is fur-
ther amended in the matter preceding the table set forth
in that paragraph, by striking ‘‘20 hours’’ and inserting
‘‘24 hours’’.
(e) ADDITIONAL WORK ACTIVITIES.—
(1) IN
GENERAL.—Section 407(d) (42 U.S.C.
607(d)) is amended—
(A) in paragraph (11), by striking ‘‘and’’
at the end;
(B) in paragraph (12), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(13)(A) rehabilitative services, such as adult
basic education, participation in a program designed
to increase proficiency in the English language, or, in
the case of an individual determined by a qualified
medical, mental health, or social services professional
as having a physical or mental disability, substance
abuse problem, or other problem that requires reha-
bilitative services, substance abuse treatment, mental
health treatment, or other rehabilitative services, pro-
213
vided that the provision of such services is a require-
ment of the individual’s individual responsibility
plan under section 408(b) (not to exceed 3 months out
of any 24-month period, or, if such services for a
longer period of time is a requirement of the individ-
ual’s plan under section 408(b), up to 6 months, but
only if, during the last 3 months of such 6 months,
such services are combined with work or job-readiness
activities); and
‘‘(B) for purposes of counting toward the min-
imum average number of hours per week specified in
the table set forth in subsection (c)(1), services de-
scribed in subparagraph (A), the provision of which
is a requirement of the individual’s individual re-
sponsibility plan under section 408(b), until an indi-
vidual successfully completes such services (and with-
out regard to the time limits for the receipt of such
services for purposes of subparagraph (A).’’.
(2) 
CONFORMING
AMENDMENTS.—Section
407(c)(1) (42 U.S.C. 607(c)(1)), as amended by sub-
sections (b) and (d), is further amended by striking
‘‘or (12)’’ and inserting ‘‘(12), or (13)(A)’’.
(f) NUMBER OF WEEKS FOR WHICH JOB SEARCH
COUNTS
AS WORK.—Section 407(c)(2)(A)(i) (42 U.S.C.
607(c)(2)(A)(i)) is amended—
214
(1) by striking ‘‘6 weeks’’ and inserting ‘‘8
weeks’’;
(2) by striking ‘‘403(b)(6)’’ and inserting
‘‘403(b)’’; and
(3) by striking ‘‘, or if the participation is for
a week that immediately follows 4 consecutive weeks
of such participation’’.
(g) EDUCATION AND TRAINING.—
(1) VOCATIONAL
AND
POSTSECONDARY
EDU-
CATION.—
(A) IN
GENERAL.—Section 407(d)(8) is
amended to read as follows:
‘‘(8) vocational education and training and post-
secondary education that is a requirement of the indi-
vidual’s individual responsibility plan under section
408(b) (not to exceed 24 months with respect to any
individual);’’.
(B) ELIMINATION
OF
RECIPIENTS
COM-
PLETING
SECONDARY
SCHOOL
FROM
LIMIT
ON
NUMBER OF TANF RECIPIENTS PARTICIPATING IN
VOCATIONAL EDUCATION TRAINING.—
(i) IN GENERAL.—Section 407(c)(2)(D)
(42 U.S.C. 607(c)(2)(D)) is amended by
striking ‘‘educational training, or (if the
month is in fiscal year 2000 or thereafter)
215
deemed to be engaged in work for the month
by reason of subparagraph (C) of this para-
graph’’ and inserting ‘‘education and train-
ing (determined without regard to any indi-
vidual described in subparagraph (C)’’.
(ii) CONFORMING AMENDMENTS.—
(I) Section 407(c)(2)(C)(ii) (42
U.S.C. 607(c)(2)(C)(ii) is amended by
inserting ‘‘including vocational edu-
cation and training’’ after ‘‘employ-
ment’’.
(II) 
Section 
407(c)(2)(D) 
(42
U.S.C. 607(c)(2)(D)) is amended in the
heading, by striking ‘‘EDUCATIONAL
ACTIVITIES’’ 
and 
inserting 
‘‘VOCA-
TIONAL EDUCATION ACTIVITIES’’.
(2) STATE OPTION TO TREAT PARTICIPANTS IN
POSTSECONDARY EDUCATION PROGRAM AS ENGAGED
IN WORK.—
(A) IN
GENERAL.—Section 407(c)(2) (42
U.S.C. 607(c)(2)) is amended by adding at the
end the following:
‘‘(E) STATE
OPTION
TO
TREAT
PARTICI-
PANTS IN POSTSECONDARY EDUCATION PROGRAM
AS ENGAGED IN WORK.—
216
‘‘(i) IN
GENERAL.—Subject to clause
(ii), in the case of a State that elects to es-
tablish a postsecondary education program
under section 404(l), the State may include,
for purposes of determining monthly par-
ticipation 
rates 
under 
subsection
(b)(1)(B)(i), all families that include an in-
dividual participating in the program dur-
ing the month as being engaged in work for
the month, so long as each such individual
is in compliance with the requirements of
that program.
‘‘(ii) LIMITATION.—With respect to a
month, the number of families treated as
being engaged in work under clause (i) may
not exceed the amount equal to 10 percent
of the average monthly number of families
to which assistance is provided under the
State program funded under this part dur-
ing the fiscal year or the immediately pre-
ceding fiscal year (but not both), as the
State may elect.’’.
(B) CONFORMING AMENDMENTS.—
217
(i) Section 407(c)(2)(D) (42 U.S.C.
607(c)(2)(D)), as amended by paragraph
(1)(B)(ii)(II), is amended—
(I) in the heading, by inserting
‘‘CERTAIN’’ after ‘‘PARTICIPATION IN’’;
and
(II) by inserting ‘‘(determined
without regard to individuals partici-
pating in a program referred to in
subparagraph (E)(i))’’ after ‘‘train-
ing’’.
(ii) Section 407(d)(8), as amended by
paragraph (1)(A), is amended inserting ‘‘,
or such longer period as the State may
allow for an individual who is treated as
being engaged in work through participa-
tion in a program that meets the require-
ments of section 404(l))’’ after ‘‘any indi-
vidual’’.
(h) STATE OPTION TO EXEMPT FULL TIME CARE-
GIVER OF A FAMILY MEMBER WITH A DISABILITY FROM
WORK
REQUIREMENTS.—Section 407(c)(2) (42 U.S.C.
607(c)(2)), as amended by subsection (g)(2), is further
amended by adding at the end the following:
218
‘‘(F) STATE OPTION TO EXEMPT FULL TIME
CAREGIVER OF A FAMILY MEMBER WITH A DIS-
ABILITY FROM WORK REQUIREMENTS.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), a State may exempt an adult recipient
from the requirement to engage in work in
accordance with this section and may ex-
clude the family of the recipient from the
determination required under subsection
(b)(1)(B)(ii) if—
‘‘(I) there are no other adults in
the family who are able-bodied;
‘‘(II) the recipient is the primary
caregiver for a child with a physical or
mental disability or chronic illness (as
defined by the State), or for another
family member with a physical or
mental disability or chronic illness (as
so defined);
‘‘(III) the State or locality admin-
istering the State program funded
under this part determines that the de-
mands of caregiving do not allow the
recipient to obtain or retain employ-
ment of at least 30 hours per week; and
219
‘‘(IV) 
the 
need 
to 
provide
caregiving is specified in the recipi-
ent’s individual responsibility plan es-
tablished under section 408(b) and re-
viewed not less than annually.
‘‘(ii) 
LIMITATION.—The 
average
monthly number of families excluded under
clause (i) from the determination required
under subsection (b)(1)(B)(ii) shall not ex-
ceed 10 percent of the average monthly
number of families to which assistance is
provided under the State program funded
under this part during the fiscal year or the
immediately preceding fiscal year (but not
both), as the State may elect.
‘‘(iii) RULES OF CONSTRUCTION.—
‘‘(I) SOME
WORK
ACTIVITY.—
Nothing in this subparagraph shall be
construed as prohibiting a State from
determining that, taking into consider-
ation the needs of the child or other
family member with a physical or
mental disability or chronic illness, the
adult recipient caregiver can engage in
some work activity, or another activity
220
that may lead to work, on a basis that
is less than 30 hours a week. A State
may exclude the family of such a re-
cipient from the determination re-
quired under subsection (b)(l)(B)(ii) if
the individual meets the requirements
specified in subclauses (I) through (IV)
of clause (i), but subject to the limita-
tion under clause (ii).
‘‘(II) AUTHORITY
TO
EXEMPT
OTHER
RECIPIENT
CAREGIVERS.—
Nothing in this subparagraph shall be
construed as prohibiting a State from
exempting from the work requirements
under this section an adult recipient
who is a caregiver of a child or other
family member with a physical or
mental disability or chronic illness but
who does not meet the requirements
specified in subclauses (I) through (IV)
of clause (i), except that the State may
not exclude the family of such a recipi-
ent from the determination required
under subsection (b)(l)(B)(ii).’’.
221
(i) LIMITATION ON PENALTY FOR FAILURE OF CER-
TAIN STATES TO SATISFY WORK PARTICIPATION RATE.—
Section 409(a)(7)(B)(ii) (42 U.S.C. 609(a)(7)(B)(ii)) is
amended by inserting ‘‘(or fails to meet such requirements
but meets at least 1 of the criteria for being considered a
needy State under section 403(b)(3)(A))’’ after ‘‘year’’.
TITLE III—FAMILY PROMOTION
AND SUPPORT
SEC. 301. HEALTHY MARRIAGE PROMOTION GRANTS.
Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended
to read as follows:
‘‘(2) 
HEALTHY
MARRIAGE
PROMOTION
GRANTS.—
‘‘(A) AUTHORITY.—
‘‘(i) IN GENERAL.—The Secretary shall
award grants to States, Indian tribes, and
nonprofit entities for not more than 75 per-
cent of the cost of developing and imple-
menting demonstration projects to promote
stronger families, with an emphasis on the
promotion of healthy marriages, through the
testing and evaluation of a wide variety of
approaches to strengthening families.
‘‘(ii) MATCHING FUNDS.—A State, In-
dian tribe, or nonprofit entity awarded a
222
grant under this paragraph shall provide
non-Federal contributions toward the costs
of programs or activities supported with
funds provided under the grant in an
amount equal to not less than 25 percent of
the Federal funds provided under the grant.
Such contributions may be provided in cash
or in kind, fairly valued, including plant,
equipment, or services.
‘‘(B) HEALTHY MARRIAGE PROMOTION AC-
TIVITIES.—Funds 
provided 
under 
a 
grant
awarded under this paragraph shall be used to
support any of the following programs or activi-
ties:
‘‘(i) Public advertising campaigns on
the value of marriage and the skills needed
to increase marital stability and health.
‘‘(ii) Voluntary marriage education
and marriage skills programs for nonmar-
ried pregnant women and nonmarried ex-
pectant fathers.
‘‘(iii) Voluntary premarital education
and marriage skills training for engaged
couples and for couples interested in mar-
riage.
223
‘‘(iv) Voluntary marriage enhancement
and marriage skills training programs for
married couples.
‘‘(v) Marriage mentoring programs
that use married couples as role models and
mentors in at-risk communities.
‘‘(vi) Teen pregnancy prevention pro-
grams.
‘‘(vii) Broad-based income support and
supplementation strategies, such as the
strategies implemented under the dem-
onstration project authorized under section
22 of the Food Stamp Act of 1977 (7 U.S.C.
2031), that provide increased assistance to
low-income working families, such as hous-
ing, transportation, and transitional bene-
fits, and that do not exclude families from
participation based on the number of par-
ents in the household.
‘‘(viii) Development and dissemination
of best practices for addressing domestic and
sexual violence as a barrier to economic se-
curity, including caseworker training, tech-
nical assistance, and voluntary services for
victims.
224
‘‘(C) SELECTION OF GRANTEES.—
‘‘(i) REQUIREMENT.—The Secretary
may not award a grant under this para-
graph unless the State, Indian tribe, or
nonprofit entity receiving the grant—
‘‘(I) consults with national, State,
local, or tribal organizations with dem-
onstrated expertise in working with
survivors of domestic violence; and
‘‘(II) agrees to participate in the
evaluation conducted under subpara-
graph (D).
‘‘(ii) PUBLIC
COMMENT
AND
AVAIL-
ABILITY.—
‘‘(I) SELECTION
CRITERIA.—The
Secretary shall promulgate regulations
detailing the criteria for awarding
grants under this paragraph and shall
make such regulations available for a
period of public comment.
‘‘(II) FUNDED
APPLICATIONS.—
The Secretary shall make all grant ap-
plications funded under this para-
graph available to the public.
‘‘(D) EVALUATION.—
225
‘‘(i) IN GENERAL.—The Director of the
National Academy of Sciences shall conduct,
directly or through contracts, a rigorous
comprehensive evaluation of a representa-
tive sample of the programs and activities
described in subparagraph (B) and carried
out with funds provided under a grant
made under this paragraph. The Director
shall seek public input on both the methods
and measures to be used in the evaluation.
‘‘(ii) REQUIRED
INFORMATION.—The
evaluation conducted under this subpara-
graph shall, with respect to each program
and activity described in subparagraph (B),
include measures of family structure, levels
of family conflict and violence, and child
well-being (including measures of health
status, educational performance, food secu-
rity, and family income).
‘‘(iii) FUNDING.—$5,000,000 of the
amount appropriated under subparagraph
(F) for each fiscal year shall be reserved for
carrying out the evaluation required under
this subparagraph.
‘‘(E) REPORTS.—
226
‘‘(i) INITIAL REPORT ON GRANTS.—Not
later than September 30, 2005, the Sec-
retary shall submit an initial report to
Congress describing the programs and ac-
tivities funded under grants made under
this paragraph.
‘‘(ii) INITIAL EVALUATION FINDINGS.—
Not later than September 30, 2006, the Di-
rector of the National Academy of Sciences
shall submit a report to Congress describing
the initial findings of the evaluation con-
ducted under subparagraph (D).
‘‘(iii) FINAL REPORTS.—Not later than
September 30, 2008, the Secretary and the
Director of the National Academy of
Sciences shall each submit final reports on
the grants made under this paragraph and
the evaluation conducted under subpara-
graph (D), respectively.
‘‘(iv) GAO.—Not later than September
30, 2006, the Comptroller General of the
United States shall submit a report to the
Chairman and Ranking Member of the
Committee on Ways and Means of the
House of Representatives and the Chairman
227
and Ranking Member of the Committee on
Finance of the Senate describing—
‘‘(I) the process the Secretary used
to award grants under this paragraph;
‘‘(II) the programs and activities
supported by such funds; and
‘‘(II) the results of such programs
and activities.
‘‘(F) APPROPRIATION.—Out of any money
in the Treasury of the United States not other-
wise appropriated, there is appropriated for each
of fiscal years 2003 through 2007, $200,000,000
for grants under this paragraph.’’.
SEC. 302. ABSTINENCE EDUCATION.
(a) EXTENSION OF ABSTINENCE EDUCATION FUNDING
UNDER THE MATERNAL AND CHILD HEALTH PROGRAM.—
Section 510(d) (42 U.S.C. 710(d)) is amended by striking
‘‘2002’’ and inserting ‘‘2007’’.
(b) GRANTS TO IMPLEMENT ABSTINENCE FIRST TEEN
PREGNANCY PREVENTION STRATEGIES.—
(1) IN GENERAL.—Title V (42 U.S.C. 701 et
seq.) is amended by adding at the end the following:
‘‘GRANTS TO IMPLEMENT ABSTINENCE FIRST TEEN
PREGNANCY PREVENTION STRATEGIES
‘‘SEC. 511. (a) AUTHORITY.—
228
‘‘(1) IN GENERAL.—The Secretary shall award
grants to States and Indian tribes to implement teen
pregnancy prevention strategies that—
‘‘(A) are abstinence-first (as defined in
paragraph (3)(A);
‘‘(B) replicate or substantially incorporate
the elements of 1 or more teen pregnancy preven-
tion programs, including certain youth develop-
ment programs and service learning programs,
that have been proven effective (on the basis of
rigorous scientific research (as defined in para-
graph (3)(D));
‘‘(C) delay or decrease sexual intercourse or
sexual activity and increase contraceptive use
among sexually active teens or reduce teenage
pregnancies without increasing risky behavior;
and
‘‘(D) incorporate outreach or media pro-
grams.
‘‘(2) DESIGN
AND
IMPLEMENTATION
FLEXI-
BILITY.—States and Indian tribes shall have flexi-
bility to determine how to design and implement teen
pregnancy prevention strategies under paragraph (1).
‘‘(3) DEFINITIONS.—In this section:
229
‘‘(A) ABSTINENCE-FIRST.—The term ‘absti-
nence-first’ means a strategy that strongly em-
phasizes abstinence as the best and only certain
way to avoid pregnancy and sexually trans-
mitted infections and that discusses the scientif-
ically proven effectiveness, benefits, and limita-
tions of contraception technologies and other pre-
vention approaches in a manner that is medi-
cally accurate (as defined in subparagraph (C)).
‘‘(B) INDIAN
TRIBE.—The term ‘Indian
tribe’ has the meaning given that term in section
419(4).
‘‘(C) MEDICALLY
ACCURATE.—The term
‘medically accurate’ means information that is—
‘‘(i) supported by research recognized
as accurate and objective by leading med-
ical, psychological, psychiatric, or public
health organizations and agencies; and
‘‘(ii) where relevant, is published in a
peer-reviewed journal (as defined by the
American Medical Association).
‘‘(D) RIGOROUS
SCIENTIFIC
RESEARCH.—
The term ‘rigorous scientific research’ means re-
search that typically uses randomized control
230
trials and other similar strong experimental de-
signs.
‘‘(b) APPLICATION OF OTHER REQUIREMENTS.—With
respect to a grant made under this section—
‘‘(1) sections 503, 507, and 508 apply to the
grant to the same extent and in the same manner as
such sections apply to allotments under section
502(c); and
‘‘(2) sections 505 and 506 apply to the grant to
the extent determined by the Secretary to be appro-
priate.
‘‘(c) COMPARATIVE EVALUATION OF EDUCATION AP-
PROACHES.—
‘‘(1) IN GENERAL.—The Secretary shall, in con-
sultation with an advisory panel of researchers iden-
tified by the Board on Children, Youth, and Families
of the National Academy of Sciences, conduct an ex-
perimental, 
independent 
evaluation, 
directly 
or
through contract or interagency agreement, that as-
sesses the relative efficacy of the 2 approaches to ab-
stinence education established under section 510 and
this section.
‘‘(2) DESIGN.—The evaluation conducted under
paragraph (1) shall be designed to—
231
‘‘(A) enable a comparison of the efficacy of
a program that precludes education about con-
traception with a similar program that includes
education about contraception and means of pre-
venting the transmission of HIV and sexually-
transmitted diseases; and
‘‘(B) measure key outcomes, including be-
haviors that put teens at risk for unintended
pregnancy and childbearing and for HIV and
other sexually transmitted diseases, such as sex-
ual activity, contraceptive use, condom use and
patterns of sexual relationships.
‘‘(3) REPORT.—Not later than 5 years after the
date of enactment of this section, the Secretary shall
submit a report to Congress that contains the results
of the evaluation conducted under paragraph (1).
‘‘(d) APPROPRIATIONS.—
‘‘(1) IN GENERAL.—Out of any money in the
Treasury not otherwise appropriated, there is appro-
priated to the Secretary for the purpose of making
grants under this section, $50,000,000 for each of fis-
cal years 2003 through 2007.
‘‘(2) RESERVATION OF FUNDS.—Of the amount
appropriated under paragraph (1) for a fiscal year,
the Secretary shall reserve—
232
‘‘(A) an amount equal to 1.5 percent of such
amount for each such fiscal year for the purpose
of awarding grants to Indian tribes under this
section in such manner, and subject to such re-
quirements as the Secretary, in consultation
with such tribes, determines appropriate; and
‘‘(B) up to $5,000,000 of such amount for
each such fiscal year for the purpose of con-
ducting the evaluation required under subsection
(c).’’.
(2) CONFORMING AMENDMENT.—The heading for
section 510 (42 U.S.C. 710) is amended by striking
‘‘SEPARATE PROGRAM FOR’’.
SEC. 303. TEEN PREGNANCY PREVENTION RESOURCE CEN-
TER.
Section 413 (42 U.S.C. 613) is amended by adding
at the end the following:
‘‘(k) TEEN PREGNANCY PREVENTION RESOURCE CEN-
TER.—
‘‘(1) AUTHORITY.—
‘‘(A) IN
GENERAL.—The Secretary shall
make a grant to a nationally recognized, non-
partisan, nonprofit organization that meets the
requirements described in subparagraph (B) to
establish and operate a national teen pregnancy
233
prevention resource center (in this subsection re-
ferred to as the ‘Resource Center’) to carry out
the purposes and activities described in para-
graph (2).
‘‘(B) REQUIREMENTS.—The requirements
described in this subparagraph are the following:
‘‘(i) The organization has at least 5
years of experience in working with diverse
sectors of society to reduce teen pregnancy.
‘‘(ii) The organization has a dem-
onstrated ability to work with and provide
assistance to a broad range of individuals
and entities, including teens, parents, the
entertainment and news media, State, trib-
al, and local organizations, networks of teen
pregnancy prevention practitioners, busi-
nesses, faith and community leaders, and
researchers.
‘‘(iii) The organization is research-
based and has capabilities in scientific
analysis and evaluation.
‘‘(iv) The organization has comprehen-
sive knowledge and data about teen preg-
nancy prevention strategies.
234
‘‘(v) The organization has experiences
operating a resource center that carries out
activities similar to the activities described
in paragraph (2)(B).
‘‘(2) PURPOSES AND ACTIVITIES.—
‘‘(A) PURPOSES.—The purposes of the Re-
source Center are to—
‘‘(i) provide information and technical
assistance to States, Indian tribes, local
communities, and other public or private
organizations seeking to reduce rates of teen
pregnancy; and
‘‘(ii) assist such entities in their efforts
to work through all forms of media to com-
municate effective messages about pre-
venting teen pregnancy, including messages
that focus on abstinence, responsible behav-
ior, family communication, relationships,
and values.
‘‘(B) ACTIVITIES.—The Resource Center
shall carry out the purposes described in sub-
paragraph (A) through the following activities:
‘‘(i) Synthesizing and disseminating
research and information regarding effective
235
and promising practices to prevent teen
pregnancy.
‘‘(ii) Developing and providing infor-
mation on how to design and implement ef-
fective programs to prevent teen pregnancy.
‘‘(iii) Helping States, local commu-
nities, and other organizations increase
their knowledge of existing resources that
can be used to advance teen pregnancy pre-
vention efforts.
‘‘(iv) Linking organizations working to
reduce teen pregnancy with experts and
peer groups, including the creation of tech-
nical assistance networks.
‘‘(v) Providing consultation and re-
sources on how to reduce teen pregnancy
through a broad array of strategies, includ-
ing enlisting the help of various sectors of
society such as parents, other adults (such
as coaches and mentors), community or
faith-based groups, the entertainment and
news media, business, and other teens.
‘‘(vi) Working directly with individ-
uals and organizations in the entertainment
industry to provide consultation and serve
236
as a source of factual information on issues
related to teen pregnancy prevention.
‘‘(3) COLLABORATION WITH OTHER ORGANIZA-
TIONS.—The organization operating the Resource
Center shall collaborate with other nonprofit organi-
zations that have expertise and interest in teen preg-
nancy prevention.
‘‘(4) APPROPRIATIONS.—Out of any money in
the Treasury of the United States not otherwise ap-
propriated, there is appropriated to carry out this
subsection, $5,000,000 for each of fiscal years 2003
through 2007.’’.
SEC. 304. RESPONSIBLE FATHERHOOD.
(a) NONCUSTODIAL PARENT EMPLOYMENT GRANT
PROGRAM.—Part D of title IV (42 U.S.C. 651 et seq.) is
amended by adding at the end the following:
‘‘SEC. 469C. NONCUSTODIAL PARENT EMPLOYMENT GRANT
PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE STATE.—The term ‘eligible State’
means a State that has obtained a commitment from
at least 1 county within the State to establish a su-
pervised employment program to provide noncusto-
dial parents described in subsection (b) with an op-
tion to participate in that program prior to a court
237
entering a finding that the noncustodial parent is in
contempt of court for failure to pay a child support
obligation.
‘‘(2) SUPERVISED EMPLOYMENT PROGRAM.—The
term ‘supervised employment program’ means an em-
ployment program supervised by a court or adminis-
tered by the State agency responsible for admin-
istering the State plan under section 454.
‘‘(b) AUTHORITY TO AWARD GRANTS.—Subject to the
availability of appropriations, the Secretary and the Sec-
retary of Labor (in this subsection referred to as the ‘Secre-
taries’) jointly shall award grants to eligible States for the
purpose of establishing, in coordination with counties and
other local governments, supervised employment programs
for noncustodial parents who are determined by a court or
the State agency responsible for administering the State
plan under section 454 to have a history of nonpayment
or irregular payment of child support obligations and are
determined to be in need of employment services in order
to pay such child support obligations. A noncustodial par-
ent described in the preceding sentence who is an ex-offender
shall be eligible to participate in a program established
with a grant made under this subsection.
‘‘(c) ADMINISTRATION.—An eligible State that receives
a grant under this section may contract with a public, pri-
238
vate, faith-based or community-based organization to ad-
minister (in conjunction with the court of jurisdiction or
State agency responsible for administering the State plan
under section 454) the supervised employment program.
‘‘(d) PROGRAM GOALS AND REQUIREMENT.—
‘‘(1) GOALS.—The goals of a supervised employ-
ment program established with funds made available
under a grant made under this section shall include
the following:
‘‘(A) To assist noncustodial parents de-
scribed in subsection (b) establish a pattern of
regular child support payments by obtaining
and maintaining employment.
‘‘(B) To increase the dollar amount and
total number of child support orders with collec-
tions.
‘‘(C) To help noncustodial parents described
in subsection (b) improve relationships with
their children.
‘‘(2) REQUIREMENT.—A supervised employment
program established with funds made available under
a grant made under this section shall not permit a
noncustodial parent placed in the program to grad-
uate from the program and avoid penalties for failure
to pay a child support obligation until the noncusto-
239
dial parent completes at least 6 months of continuous,
timely payment of the parent’s child support obliga-
tions.
‘‘(e) USE OF FUNDS.—Services provided under a su-
pervised employment program established with funds made
available under a grant made under this section may in-
clude the following:
‘‘(1) Job development.
‘‘(2) Supervised job search.
‘‘(3) Job placement.
‘‘(4) Case management.
‘‘(5) Court and child support liaison services.
‘‘(6) Educational assessment.
‘‘(7) Educational referrals.
‘‘(8) Vocational assessment.
‘‘(9) Counseling on responsible fatherhood and ef-
fective parenting.
‘‘(10) Support funds for services such as trans-
portation or short-term training.
‘‘(11) Referral for support services.
‘‘(12) Employment retention services.
‘‘(13) Outreach to community agencies that pro-
vide bonding programs.
‘‘(14) Domestic violence services and health serv-
ices.
240
‘‘(f) AMOUNT OF GRANTS.—
‘‘(1) IN GENERAL.—The Secretaries shall deter-
mine the amount of each grant to be awarded under
this section, taking into account the number of coun-
ties participating in an eligible State and the popu-
lation of the noncustodial parents to be served by the
employment programs in that State.
‘‘(2) PRIORITY
FOR
CERTAIN
PROGRAMS.—In
awarding grants under this section, the Secretaries
shall give priority to eligible States with programs
that are designed to target noncustodial parents
whose income does not exceed 150 percent of the pov-
erty line (as defined in section 673(2) of the Commu-
nity Services Block Grant Act (42 U.S.C. 9902(2)),
including any revision required by such section appli-
cable to a family of the size involved).
‘‘(3) MATCHING REQUIREMENT.—
‘‘(A) IN
GENERAL.—The Secretaries may
not award a grant to an eligible State under this
section unless the eligible State agrees that, with
respect to the costs to be incurred by the eligible
State in supporting the supervised employment
program established with funds provided under
the grant, the State will make available non-Fed-
eral contributions in an amount equal to 25 per-
241
cent of the amount of Federal funds paid to the
State under such grant.
‘‘(B) NON-FEDERAL
CONTRIBUTIONS.—In
this paragraph, the term ‘non-Federal contribu-
tions’ includes contributions by the State and by
public and private entities that may be in cash
or in kind, but does not include any amounts
provided by the Federal Government, or services
assisted or subsidized to any significant extent
by the Federal Government or any amount ex-
pended by a State before October 1, 2002.
‘‘(g) APPLICATION.—In order to receive a grant under
this section, an eligible State shall submit an application
to the Secretaries, at such time and in such manner as the
Secretaries may require, and that includes the following:
‘‘(1) Evidence of an agreement between the State
and 1 or more counties to establish a supervised em-
ployment program that meets the requirements of this
section.
‘‘(2) The number of potential noncustodial par-
ents to be served by the program.
‘‘(3) The purposes specific to that State’s pro-
gram.
‘‘(4) The income of the target population.
242
‘‘(5) The amount of proposed grant funds to be
awarded.
‘‘(6) A certification that the State matching re-
quirements of subsection (f)(3) will be satisfied if the
grant is awarded to that State.
‘‘(7) Such other information as the Secretaries
deem appropriate.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated for making grants under this
section, $25,000,000 for each of fiscal years 2004 through
2007.’’.
(b) POLICY REVIEWS AND DEMONSTRATION PROJECTS
TO COORDINATE SERVICES FOR LOW-INCOME, NONCUSTO-
DIAL PARENTS.—Part D of title IV (42 U.S.C. 651), as
amended by subsection (a), is further amended by adding
at the end the following:
‘‘SEC. 469D. GRANTS TO CONDUCT POLICY REVIEWS AND
DEMONSTRATION 
PROJECTS 
TO 
COORDI-
NATE 
SERVICES 
FOR 
LOW-INCOME, 
NON-
CUSTODIAL PARENTS.
‘‘(a) POLICY REVIEWS.—Subject to the availability of
appropriations, the Secretary shall make grants to States
desiring to conduct policy reviews and develop rec-
ommendations with the goals of—
243
‘‘(1) obtaining and retaining employment, in-
creasing child support payments, and increasing the
healthy involvement of low-income, noncustodial par-
ents with their children; and
‘‘(2) coordinating services for low-income, non-
custodial parents among the different systems or pro-
grams in which such parents are involved, including
the criminal justice system, the State program funded
under part A, the State program funded under this
part, and job training or employment programs.
‘‘(b) DEMONSTRATION PROJECTS.—
‘‘(1) IN
GENERAL.—The Secretary shall make
grants to States desiring to conduct a demonstration
project for the purpose of—
‘‘(A) testing innovative policies and to bet-
ter coordinate policies and services for low-in-
come, noncustodial parents to accomplish the
goals described in subsection (a); or
‘‘(B) if the State conducted a policy review
with a grant made under subsection (a) and de-
sires to implement the recommendations of that
review, implementing such recommendations.
‘‘(2) USE
OF
FUNDS.—Funds made available
under a grant made under this subsection may be
used to provide a wide variety of services to, and to
244
implement policies regarding, low-income, noncusto-
dial parents, including providing economic incentives
(with or without penalty) to increase the employment
of such parents or to increase the amount of child
support paid by such parents.
‘‘(c) APPLICATION.—A State desiring to receive a
grant to conduct a policy review under subsection (a) or
a grant to conduct a demonstration project under subsection
(b) shall submit an application to the Secretary at such
time, in such manner, and containing such information as
the Secretary may require.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated for making grants under this
section, $25,000,000 for each of fiscal years 2004 through
2007.’’.
SEC. 305. SECOND CHANCE HOMES.
Section 403(a) (42 U.S.C. 603(a)), as amended by sec-
tion 201(c)(2), is amended by adding at the end the fol-
lowing:
‘‘(7) GRANTS
TO
PROMOTE
SECOND
CHANCE
HOMES.—
‘‘(A) AUTHORITY TO AWARD GRANTS.—
‘‘(i) IN GENERAL.—The Secretary may
award grants to eligible entities to enable