TITLE I—REPORTING OF MEANS- 
TESTED WELFARE SPENDING 
IN 
PRESIDENT’S 
BUDGET 
SUBMISSION 
SEC. 101. ADDITIONAL INFORMATION IN PRESIDENT’S 
BUDGET SUBMISSION. 
Section 1105(a) of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(40) the total level of means-tested welfare 
spending (as defined in section 3 of the Congres-
sional Budget Act of 1974 (2 U.S.C. 622)) by the 
Federal Government and the total level of means- 
tested welfare spending by all State and local gov-
ernments and the Federal Government for the most 
recent fiscal year for which such data is available 
and estimated levels for the fiscal year during which 
the budget submission of the President is made, for 
the fiscal year beginning on October 1 of the cal-
endar year during which the budget submission is 
made, and for each of the 9 ensuing fiscal years.’’. 
SEC. 102. ADDITIONAL INFORMATION FROM STATE RECIPI-
ENTS OF MEANS-TESTED WELFARE SPEND-
ING. 
For each of fiscal years 2018 through 2028, each 
State that receives means-tested welfare spending (as de-
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fined in section 3 of the Congressional Budget Act of 1974 
(2 U.S.C. 622), as amended by this Act) by the Federal 
Government shall submit to the Director of the Congres-
sional Budget Office an annual report regarding the total 
amount of means-tested welfare spending by the State for 
the fiscal year. 
SEC. 103. DEFINITION OF MEANS-TESTED WELFARE SPEND-
ING. 
Section 3 of the Congressional Budget Act of 1974 
(2 U.S.C. 622) is amended by adding at the end the fol-
lowing: 
‘‘(12)(A) 
The 
term 
‘means-tested 
welfare 
spending’— 
‘‘(i) means spending for any Federal pro-
gram that is designed to specifically provide as-
sistance or benefits exclusively to low-income 
Americans; 
‘‘(ii) does not include such a program if 
the program— 
‘‘(I) is based on earned eligibility; 
‘‘(II) is not need-based; 
‘‘(III) is a program designed exclu-
sively or primarily for veterans of military 
service; or 
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‘‘(IV) offers universal or near uni-
versal eligibility to the working population 
and their dependents; and 
‘‘(iii) includes community and economic de-
velopment programs targeted to low-income 
communities or populations. 
‘‘(B) For purposes of subparagraph (A), the 
spending on the following Federal programs shall be 
means-tested welfare spending: 
‘‘(i) CASH AND GENERAL PROGRAMS.— 
‘‘(I) Supplemental Security Income. 
‘‘(II) Earned Income Tax Credit (Re-
fundable Portion). 
‘‘(III) Refundable Child Credit. 
‘‘(IV) Temporary Assistance to Needy 
Families. 
‘‘(V) Title IV–E Foster Care. 
‘‘(VI) Title IV–E Adoption Assist-
ance. 
‘‘(VII) General Assistance to Indians. 
‘‘(VIII) Assets for Independence. 
‘‘(ii) MEDICAL.— 
‘‘(I) Medicaid. 
‘‘(II) State Children’s Health Insur-
ance Program. 
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‘‘(III) Indian Health Services. 
‘‘(IV) Consolidated Health Centers/ 
Community Health Centers. 
‘‘(V) Maternal and Child Health. 
‘‘(VI) Healthy Start. 
‘‘(VII) Refundable Premiums and Out 
of Pocket Subsidies under the Patient Pro-
tection and Affordable Health Care Act 
(PPACA). 
‘‘(iii) FOOD.— 
‘‘(I) Food Stamps Program. 
‘‘(II) School Lunch Program. 
‘‘(III) Women, Infant and Children 
(WIC) Food Program. 
‘‘(IV) School Breakfast. 
‘‘(V) Child Care Food Program. 
‘‘(VI) Nutrition Program for the El-
derly, Nutrition Service Incentives. 
‘‘(VII) Summer Food Service Pro-
gram. 
‘‘(VIII) 
Commodity 
Supplemental 
Food Program. 
‘‘(IX) Temporary Emergency Food 
Program. 
‘‘(X) Needy Families. 
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‘‘(XI) Farmer’s Market Nutrition 
Program. 
‘‘(XII) Special Milk Program. 
‘‘(iv) HOUSING.— 
‘‘(I) Section 8 Housing (HUD). 
‘‘(II) Public Housing (HUD). 
‘‘(III) State Housing Expenditures. 
‘‘(IV) Home Investment Partnership 
Program (HUD). 
‘‘(V) Homeless Assistance Grants 
(HUD). 
‘‘(VI) Rural Housing Insurance Fund 
(Agriculture). 
‘‘(VII) Rural Housing Service (Agri-
culture). 
‘‘(VIII) Housing for the Elderly 
(HUD). 
‘‘(IX) 
Native 
American 
Housing 
Block Grants (HUD). 
‘‘(X) Other Assisted Housing Pro-
grams (HUD). 
‘‘(XI) Housing for Persons with Dis-
abilities (HUD). 
‘‘(v) ENERGY AND UTILITIES.— 
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‘‘(I) Low-Income Home Energy As-
sistance. 
‘‘(II) Universal Service Fund—Sub-
sidized Phone Service for Low-Income Per-
sons. 
‘‘(III) Weatherization. 
‘‘(vi) EDUCATION.— 
‘‘(I) Federal Pell Grants. 
‘‘(II) Grants for improving basic pro-
grams operated by local educational agen-
cies. 
‘‘(III) Federal TRIO Programs. 
‘‘(IV) Federal Supplemental Edu-
cational Opportunity Grants. 
‘‘(V) Programs for the education of 
migratory children. 
‘‘(VI) Gaining Early Awareness and 
Readiness for Undergraduate Programs 
(GEAR UP). 
‘‘(VII) Education for Homeless Chil-
dren and Youth. 
‘‘(VIII) Leveraging Educational As-
sistance Partnership (LEAP) Program. 
‘‘(IX) Even Start. 
‘‘(vii) TRAINING.— 
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‘‘(I) Job Corps. 
‘‘(II) Youth Opportunity Grants. 
‘‘(III) Adult Employment and Train-
ing Activities. 
‘‘(IV) Senior Community Service Em-
ployment. 
‘‘(V) Employment and Training Pro-
gram, of the Food Stamp Program or the 
Supplemental Nutrition Assistance Pro-
gram. 
‘‘(VI) Workforce Investment Activities 
for Migrant and Seasonal Farmworkers. 
‘‘(VII) YouthBuild. 
‘‘(VIII) Workforce Investment Activi-
ties for Indians or Native Hawaiians. 
‘‘(viii) SERVICES.— 
‘‘(I) Social Services Block Grant. 
‘‘(II) 
Community 
Services 
Block 
Grant. 
‘‘(III) Services for Refugees, Asylees, 
and Other Special Populations. 
‘‘(IV) State and Community Pro-
grams on Aging. 
‘‘(V) Legal Assistance Grants and 
Contracts. 
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‘‘(VI) Family Planning Services. 
‘‘(VII) Emergency Food and Shelter. 
‘‘(VIII) Healthy Marriage Promotion 
and Responsible Fatherhood Grants. 
‘‘(IX) AmeriCorps VISTA. 
‘‘(ix) CHILD CARE AND CHILD DEVELOP-
MENT.— 
‘‘(I) Head Start (including Early 
Head Start). 
‘‘(II) Child Care and Development 
Block Grant (not under the Temporary As-
sistance to Needy Families Program). 
‘‘(III) Child Care and Development 
Block Grant (under the Temporary Assist-
ance to Needy Families Program). 
‘‘(x) COMMUNITY DEVELOPMENT.— 
‘‘(I) Community Development Block 
Grant. 
‘‘(II) Economic Development Adminis-
tration. 
‘‘(III) Appalachian Regional Develop-
ment. 
‘‘(IV) Empowerment Zones, Enter-
prise Communities, Renewal Communities. 
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‘‘(V) 
Urban 
Development 
Block 
Grant. 
‘‘(C) For purposes of subparagraph (A), spend-
ing on the following Federal programs shall not be 
means-tested welfare spending: 
‘‘(i) The Social Security Disability Insur-
ance program. 
‘‘(ii) Medicare. 
‘‘(iii) Retirement insurance benefits and 
survivor benefits under the Social Security pro-
gram. 
‘‘(iv) Any program designed exclusively or 
primarily for veterans of military service. 
‘‘(v) Unemployment insurance benefits. 
‘‘(vi) Programs designed specifically to 
provide benefits to workers to compensate for 
job-related injuries or illnesses. 
‘‘(D) The term ‘means-tested welfare spending’ 
includes the full cost of benefits and services pro-
vided under a program and the administrative costs 
for operating the program, subject to the limitations 
under subparagraph (E). 
‘‘(E)(i)(I) For purposes of this paragraph, only 
the refundable portion of the following tax credits 
shall be means-tested welfare spending: 
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‘‘(aa) The earned income tax credit. 
‘‘(bb) The child tax credit. 
‘‘(cc) The making work pay tax credit. 
‘‘(II) For purposes of this paragraph, only the 
refundable portion of the premium and out of pocket 
health care subsidies to be paid under the Patient 
Protection and Affordable Health Care Act shall be 
means-tested welfare spending. 
‘‘(III) For purposes of this clause, the term ‘re-
fundable portion’ means the portion of the credit 
which is paid to an individual in excess of the 
amount of Federal income tax owed by the indi-
vidual. 
‘‘(ii) For purposes of this paragraph, only the 
costs of the free and reduced price segments of the 
school lunch and school breakfast programs shall be 
means-tested welfare spending. 
‘‘(F) For purposes of this paragraph expendi-
tures by State and local governments of funds that 
are— 
‘‘(i) obtained by the State and local gov-
ernment from taxes, fees, or other sources of 
revenue established by the State or local gov-
ernment; and 
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‘‘(ii) are not received as any form of grant 
from the Federal Government, 
shall not be Federal means-tested welfare spending, 
without regard to whether such State and local ex-
penditures take the form of contributions to a Fed-
eral program described in subparagraph (A) or listed 
in subparagraph (B).’’. 
TITLE 
II—MODIFICATIONS 
TO 
SUPPLEMENTAL 
NUTRITION 
ASSISTANCE PROGRAM 
SEC. 
201. 
WORK 
REQUIREMENTS 
FOR 
ABLE-BODIED 
ADULTS WITHOUT DEPENDENTS. 
(a) DECLARATION
OF POLICY.—Section 2 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2011) is 
amended by adding at the end the following: ‘‘Congress 
further finds that it should also be the purpose of the sup-
plemental nutrition assistance program to increase em-
ployment, to encourage healthy marriage, and to promote 
prosperous self-sufficiency, which means the ability of 
households to maintain an income above the poverty level 
without services and benefits from the Federal Govern-
ment.’’. 
(b) DEFINITIONS.— 
(1) FOOD.—Section 3(k) of the Food and Nu-
trition Act of 2008 (7 U.S.C. 2012(k)) is amended 
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by inserting before the period at the end the fol-
lowing: ‘‘, except that a food, food product, meal, or 
other item described in this subsection shall be con-
sidered a food under this Act only if it is an essen-
tial (as determined by the Secretary)’’. 
(2) SUPERVISED
JOB
SEARCH.—Section 3 of 
the Food and Nutrition Act of 2008 (7 U.S.C. 
2012) is amended— 
(A) 
by 
redesignating 
subsections 
(t) 
through (v) as subsections (u) through (w), re-
spectively; and 
(B) by inserting after subsection (s) the 
following: 
‘‘(t) SUPERVISED JOB SEARCH.—The term ‘super-
vised job search’ means a job search program that has 
the following characteristics: 
‘‘(1) The job search occurs at an official loca-
tion where the presence and activity of the recipient 
can be directly observed, supervised, and monitored. 
‘‘(2) The entry, time onsite, and exit of the re-
cipient from the official job search location are re-
corded in a manner that prevents fraud. 
‘‘(3) The recipient is expected to remain and 
undertake job search activities at the job search cen-
ter. 
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‘‘(4) The quantity of time the recipient is ob-
served and monitored engaging in job search at the 
official location is recorded for purposes of compli-
ance with the work and work activation require-
ments of sections 6(o) and 30.’’. 
(c) 
WORK
REQUIREMENT
FOR
ABLE-BODIED 
ADULTS WITHOUT DEPENDENTS.—Section 6(o) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is 
amended— 
(1) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘not less than 3 months (con-
secutive or otherwise)’’ and inserting ‘‘more 
than 1 month’’; 
(B) in subparagraph (C), by striking ‘‘or’’ 
at the end; 
(C) in subparagraph (D), by striking the 
period at the end and inserting ‘‘; or’’; and 
(D) by adding at the end the following: 
‘‘(E) participate in supervised job search 
for at least 8 hours per week.’’; 
(2) in paragraph (4), by adding at the end the 
following: 
‘‘(C) TERMINATION.—Subparagraph (A) 
shall not apply with respect to any fiscal year 
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that begins after the effective date of the Wel-
fare Reform and Upward Mobility Act.’’; 
(3) in paragraph (6)— 
(A) in the paragraph heading, by striking 
‘‘15-PERCENT’’ and inserting ‘‘5-PERCENT’’; 
(B) in subparagraph (A)(ii)(IV), by strik-
ing ‘‘3 months’’ and inserting ‘‘1 month’’; and 
(C) in subparagraph (D), by striking ‘‘15 
percent’’ and inserting ‘‘5 percent’’; and 
(4) by adding at the end the following: 
‘‘(8) PROMOTING WORK.—As a condition of re-
ceiving supplemental nutrition assistance program 
funds under this Act, a State agency shall provide 
each individual subject to the work requirement of 
this subsection with the opportunity to participate in 
an activity selected by the State from among the op-
tions described in subparagraphs (B), (C), and (E) 
of paragraph (2). 
‘‘(9) PENALTIES FOR INADEQUATE STATE PER-
FORMANCE.—If a State agency fails to fully comply 
with this section, including the requirement to termi-
nate the benefits of individuals who fail to fulfill the 
work requirements described in paragraph (2) dur-
ing a fiscal quarter, the funding allotment of the 
State for the supplemental nutrition assistance pro-
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gram shall be reduced by 10 percent for the quarter 
that begins 180 days after the first day of the quar-
ter in which the noncompliance occurred.’’. 
SEC. 202. WORK ACTIVATION PROGRAM FOR ADULTS WITH 
DEPENDENT CHILDREN. 
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 
et seq.) is amended by adding at the end the following: 
‘‘SEC. 30. WORK ACTIVATION PROGRAM FOR ADULTS WITH 
DEPENDENT CHILDREN. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE PARTICIPANT.—The term ‘eligi-
ble participant’ means an individual who, during a 
particular month, is— 
‘‘(A) a parent in a household with depend-
ent children; 
‘‘(B) at least 19, and not more than 55, 
years of age; 
‘‘(C) not disabled; 
‘‘(D) a member of a household in which 
one or more parents or children receive supple-
mental nutrition assistance program benefits in 
the month; 
‘‘(E) a member of a household that re-
ceived supplemental nutrition assistance pro-
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gram benefits for more than 3 months in the 
year; and 
‘‘(F) employed less than 100 hours in the 
month. 
‘‘(2) MARRIED
COUPLE
HOUSEHOLD.—The 
term ‘married couple household’ means a household 
that includes 2 eligible participants who are married 
to each other and have dependent children. 
‘‘(3) SUCCESSFUL ENGAGEMENT IN WORK ACTI-
VATION.—The term ‘successful engagement in work 
activation’ means— 
‘‘(A) in the case of an individual who is eli-
gible and required to participate in interim 
work activation, performance during the month 
that fulfills the activity and hour requirements 
of subsection (c); 
‘‘(B) in the case of an individual who is re-
quired to participate in full work activation, 
performance during the month that fulfills the 
activity and hour requirements of subsection 
(d); and 
‘‘(C) in the case of an individual who 
meets the eligibility criteria described in sub-
section (e)(1), performance that fulfills the ac-
tivity and hour requirements of that subsection. 
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‘‘(4) WORK AND WORK PREPARATION ACTIVI-
TIES.—The term ‘work and work preparation activi-
ties’ means— 
‘‘(A) unsubsidized employment; 
‘‘(B) subsidized private sector employment; 
‘‘(C) subsidized public sector employment; 
‘‘(D) work experience (including work as-
sociated with the refurbishing of publicly as-
sisted housing) if sufficient private sector em-
ployment is not available; 
‘‘(E) on-the-job training; 
‘‘(F) job readiness assistance; 
‘‘(G) a community service program; 
‘‘(H) vocational educational training (not 
to exceed 1 year with respect to any individual); 
‘‘(I) job skills training directly related to 
employment; 
‘‘(J) education directly related to employ-
ment, in the case of a recipient who has not re-
ceived a high school diploma or a certificate of 
high school equivalency; 
‘‘(K) satisfactory attendance at secondary 
school or in a course of study leading to a cer-
tificate of general equivalence, in the case of a 
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recipient who has not completed secondary 
school or received such a certificate; 
‘‘(L) the provision of child care services to 
an individual who is participating in a commu-
nity service program; 
‘‘(M) workfare under section 20; and 
‘‘(N) supervised job search. 
‘‘(b) WORK ACTIVATION PROGRAM.— 
‘‘(1) IN GENERAL.—As a condition of receiving 
supplemental nutrition assistance program funds 
under this Act, a State agency shall be required to 
operate a work activation program for eligible par-
ticipants. 
‘‘(2) SPECIAL
RULES
FOR
MARRIED
COUPLE 
HOUSEHOLDS.— 
‘‘(A) IN GENERAL.—In the case of eligible 
participants who are spouses in a married cou-
ple household— 
‘‘(i) the work activation requirement 
of this section shall apply only if the sum 
of the combined current employment of 
both spouses is less than 100 hours per 
month; and 
‘‘(ii) both spouses shall be considered 
to have achieved successful engagement in 
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the work activation program if either 
spouse fulfills the work activation require-
ments described in subsection (c), (d), or 
(e)(1). 
‘‘(B) TOTAL REQUIRED HOURS.—The total 
combined number of hours of required work 
and work preparation activities for both spouses 
in a married couple household shall not be 
greater than the total number of hours required 
for a single head of household. 
‘‘(C) REQUIREMENT.—In carrying out this 
section, a State agency shall ensure that, for 
any month— 
‘‘(i) the proportion that— 
‘‘(I) the number of married cou-
ple households that are required to 
participate in work activation under 
this section in a month; bears to 
‘‘(II) the number of all house-
holds that are required to participate 
in work activation under this section 
in the same month; is not greater 
than— 
‘‘(ii) the proportion that— 
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‘‘(I) the number of all married 
couple households with eligible partici-
pants in the month; bears to 
‘‘(II) the number of all house-
holds with eligible participants in the 
same month. 
‘‘(c) SHORT-TERM INTERIM WORK ACTIVATION.— 
‘‘(1) IN GENERAL.—A State agency may re-
quire eligible participants who meet the criteria in 
paragraph (2) to engage in— 
‘‘(A) interim work activation as described 
in this subsection; or 
‘‘(B) full work activation as described in 
subsection (d). 
‘‘(2) ELIGIBILITY.—A State agency may re-
quire an eligible participant to participate in interim 
work activation instead of full work activation if the 
eligible participant has not engaged in work activa-
tion under this section in the preceding 3 years. 
‘‘(3) REQUIRED JOB SEARCH.—A participant in 
interim work activation shall be required— 
‘‘(A) to participate in supervised job search 
for at least 6 hours per week; and 
‘‘(B) to engage in such additional activities 
as the State agency may require. 
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‘‘(3) LIMITATION.—Of the total number of re-
quired hours described in paragraph (2), not fewer 
than 20 hours per week shall be attributable to an 
activity described in subparagraph (A), (B), (C), 
(D), (E), (F), (G), (H), (L), (M), or (N) of sub-
section (a)(4). 
‘‘(4) PARTICIPATION
IN
COMMUNITY
SERVICE 
OR WORKFARE.—At least 10 percent of the eligible 
participants that a State requires to participate in 
full work activation under this section shall be re-
quired to participate in activities described in sub-
paragraph (D), (G), or (M) of subsection (a)(4). 
‘‘(5) WORK ACTIVATION NOT EMPLOYMENT.— 
Other than unsubsidized employment described in 
subsection (a)(4)(A), participation in work and work 
preparation activities under this section shall not 
be— 
‘‘(A) considered to be employment; or 
‘‘(B) subject to any law pertaining to 
wages, compensation, hours, or conditions of 
employment under any law administered by the 
Secretary of Labor. 
‘‘(6) ADDITIONAL
REQUIRED
ACTIVITY.—Ex-
cept as provided in subsection (g), nothing in this 
section prevents a State from requiring more than 
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100 hours per month of participation in work and 
work preparation activities. 
‘‘(e) LIMITATIONS AND SPECIAL RULES.— 
‘‘(1) SINGLE TEEN HEAD OF HOUSEHOLD OR 
MARRIED
TEEN
WHO
MAINTAINS
SATISFACTORY 
SCHOOL
ATTENDANCE.—For purposes of deter-
mining monthly participation rates under this sec-
tion, an eligible participant who is married or a head 
of household and who has not attained 20 years of 
age shall be considered to have completed successful 
engagement in work activation for a month if the eli-
gible participant— 
‘‘(A) maintains satisfactory attendance at 
secondary school or the equivalent during the 
month; or 
‘‘(B) participates in education directly re-
lated to employment for an average of at least 
20 hours per week during the month. 
‘‘(2) LIMITATION
ON
NUMBER
OF
PERSONS 
WHO MAY BE TREATED AS ENGAGED IN WORK ACTI-
VATION
BY
REASON
OF
PARTICIPATION
IN
EDU-
CATIONAL
ACTIVITIES.—For purposes of deter-
mining monthly participation rates under this sec-
tion, not more than 30 percent of the number of in-
dividuals in a State who are treated as having com-
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pleted successful engagement in work activation for 
a month may be individuals who are determined to 
be engaged in work activation for the month by rea-
son of participation in vocational educational train-
ing. 
‘‘(f) STATE OPTION FOR PARTICIPATION REQUIRE-
MENT EXEMPTIONS.— 
‘‘(1) IN GENERAL.—For any fiscal year, a State 
agency, at the option of the State agency, may— 
‘‘(A) exempt a household that includes a 
child who has not attained 12 months of age 
from engaging in work activation; and 
‘‘(B) disregard that household in deter-
mining the monthly participation rates under 
this section until the child has attained 12 
months of age. 
‘‘(2) EXCLUSION.—For purposes of determining 
monthly participation rates under this section, a 
household that includes a child who has not attained 
6 years of age shall be considered to be successfully 
engaged in work activation for a month if a member 
of the household receiving supplemental nutrition as-
sistance program benefits is engaged in work activa-
tion for an average of at least 20 hours per week 
during the month. 
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‘‘(g) PENALTIES AGAINST INDIVIDUALS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), if an eligible participant in a household 
receiving assistance under the State program funded 
under this section fails to complete successful en-
gagement in work activation in accordance with this 
section, the State agency shall— 
‘‘(A) in accordance with paragraph (2), re-
duce the amount of assistance otherwise pay-
able to the entire household pro rata (or more, 
at the option of the State agency) with respect 
to the month immediately after any month in 
which the eligible participant fails to perform; 
or 
‘‘(B) terminate the assistance entirely. 
‘‘(2) PRO RATA REDUCTION.—For purposes of 
paragraph (1)(A), the amount of the pro rata reduc-
tion shall equal the product obtained by multi-
plying— 
‘‘(A) the normal monthly amount of assist-
ance to the entire household that would have 
been received if not for the reduction under 
paragraph (1)(A); by 
‘‘(B) the proportion that— 
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‘‘(i) the hours of required work and 
work preparation activities performed by 
the eligible participant during the month; 
bears to 
‘‘(ii) the number or hours of work and 
work preparation activities the State agen-
cy required the eligible participant to per-
form in accordance with this section. 
‘‘(3) EXCEPTION.—A State may not reduce or 
terminate assistance under the State program fund-
ed under this section or any other State program 
funded with qualified State expenditures (as defined 
in section 409(a)(7)(B) of the Social Security Act 
(42 U.S.C. 609(a)(7)(B))) based on a refusal of an 
eligible participant to engage in work and work 
preparation activities required under this section 
if— 
‘‘(A) the eligible participant is a single cus-
todial parent caring for a child who has not at-
tained 6 years of age; and 
‘‘(B) the eligible participant proves that 
the eligible participant has a demonstrated in-
ability (as determined by the State agency) to 
obtain needed child care, due to— 
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‘‘(i) unavailability of appropriate child 
care within a reasonable distance from the 
home or work site of the eligible partici-
pant; or 
‘‘(ii) unavailability of all affordable 
child care arrangements, including formal 
child care and all informal child care by a 
relative or under other arrangements. 
‘‘(h) LIMITATION ON HOURS OF REQUIRED PARTICI-
PATION IN COMMUNITY SERVICE OR WORKFARE.— 
‘‘(1) IN GENERAL.—The maximum number of 
hours during a month that an eligible participant 
shall be required under this section to work in a 
community service program or a workfare program 
under section 20 shall not exceed the quotient ob-
tained by dividing— 
‘‘(A) the total dollar cost of all means-test-
ed benefits received by the household for that 
month, as determined under paragraph (2); by 
‘‘(B) the Federal minimum wage. 
‘‘(2) TOTAL
DOLLAR
COST
OF
ALL
MEANS- 
TESTED BENEFITS DEFINED.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the total dollar cost of all 
means-tested benefits shall equal the sum of the 
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dollar cost of all benefits received by the house-
hold from— 
‘‘(i) the supplemental nutrition assist-
ance program; 
‘‘(ii) the State program funded under 
part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.) or any other 
State program funded with qualified State 
expenditures 
(as 
defined 
in 
section 
409(a)(7)(B)(i) of such Act (42 U.S.C. 
609(a)(7)(B)(i))); and 
‘‘(iii) any assistance provided to a 
household, landlord, or public housing 
agency (as defined in section 3(b)(6) of the 
United States Housing Act of 1937 (42 
U.S.C. 1437a(b)(6))) to subsidize the rent-
al payment for a dwelling unit, including 
assistance provided for public housing 
dwelling units under section 3 of the 
United States Housing Act of 1937 (42 
U.S.C. 1437a) and assistance provided 
under section 8 of that Act (42 U.S.C. 
1437f). 
‘‘(B) VALUE OF BENEFITS DURING SANC-
TION.—For purposes of subparagraph (A), if 
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the dollar value of one or more benefits received 
by a household in a month has been reduced 
under subsection (g) or another sanction re-
quirement, the calculated dollar value of the 
sanctioned benefits shall equal the dollar value 
of the benefit that would have been received if 
the benefit had not been reduced by the sanc-
tion. 
‘‘(3) ADDITIONAL ACTIVITIES.—Nothing in this 
subsection prevents a State agency from requiring 
an eligible participant to engage in activities not de-
scribed in paragraph (1) for additional hours during 
the month. 
‘‘(i) WORK ACTIVATION PARTICIPATION GOALS.— 
‘‘(1) IN GENERAL.—As a condition of receiving 
supplemental nutrition assistance program funds 
under this Act, except as provided in paragraph (2), 
a State agency shall achieve for each quarter of the 
fiscal year with respect to all eligible participants re-
ceiving assistance under the State program funded 
under this section for that fiscal year at least the 
participation rate specified in the following table: 
‘‘If the fiscal year is: 
The quarterly 
participation rate 
shall be at least: 
2018 .....................................................................................
20 percent
2019 .....................................................................................
35 percent
2020 .....................................................................................
50 percent
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‘‘If the fiscal year is: 
The quarterly 
participation rate 
shall be at least: 
2021 .....................................................................................
65 percent
2022 .....................................................................................
80 percent. 
‘‘(2) ADJUSTMENT
IF
RECESSIONARY
PE-
RIOD.—If the average national unemployment rate 
during a quarter of a fiscal year, as determined by 
the Bureau of Labor Statistics of the Department of 
Labor, is more than 8 percent, the participation goal 
for the immediately succeeding quarter shall equal 
the product obtained by multiplying— 
‘‘(A) the applicable quarterly participation 
rate under paragraph (1); by 
‘‘(B) 0.8. 
‘‘(j) CALCULATION OF WORK ACTIVATION PARTICI-
PATION RATES.— 
‘‘(1) DEFINITION
OF
SANCTIONED
RECIPI-
ENT.—In this subsection, the term ‘sanctioned re-
cipient’ means any eligible participant who— 
‘‘(A) was required to participate in work 
activation in a month; 
‘‘(B) failed to perform the assigned work 
and work preparation activities so as to meet 
the relevant hourly requirements in subsection 
(c), (d), or (e)(2); and 
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‘‘(C) was sanctioned by a reduced benefit 
payment in the subsequent month under sub-
section (g). 
‘‘(2) REQUIREMENTS.—The work activation 
participation rate for a State for any quarter of a 
fiscal year shall equal the average of the monthly 
participation rates for the State during the 3 
months of that quarter. 
‘‘(3) MONTHLY
PARTICIPATION
RATE.—For 
purposes of paragraph (2), the monthly participation 
rate shall equal the ratio of all countable partici-
pants to all eligible participants in the month, as de-
termined under paragraph (4). 
‘‘(4) RATIO OF ALL COUNTABLE PARTICIPANTS 
TO ALL ELIGIBLE PARTICIPANTS.—Subject to para-
graph (5), the ratio of all countable participants to 
all eligible participants in a month equals the pro-
portion that— 
‘‘(A) the sum obtained by adding— 
‘‘(i) all eligible participants who— 
‘‘(I) were required by the State 
to engage in interim work activation, 
full work activation, or education 
under subsection (e)(1) during the 
month; and 
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‘‘(II) fulfilled the criteria for suc-
cessful engagement in work activation 
for that activity during the month; 
and 
‘‘(ii) all sanctioned recipients for that 
month; bears to 
‘‘(B) the average number of eligible par-
ticipants in the State in that month. 
‘‘(5) MULTIPLE
ELIGIBLE
PARTICIPANTS.—A 
married couple household consisting of more than 1 
eligible participant shall be counted as a single eligi-
ble participant for purposes of calculating the par-
ticipation rate under this subsection. 
‘‘(k) PENALTIES FOR INADEQUATE STATE PERFORM-
ANCE.— 
‘‘(1) IN
GENERAL.—Beginning in the first 
quarter of fiscal year 2019 and for each subsequent 
quarter of fiscal year 2019 and of each subsequent 
fiscal year, each State shall count the monthly aver-
age number of countable participants under this sec-
tion. 
‘‘(2) REDUCTION IN FUNDING.—If the monthly 
average number of countable participants in a State 
of a fiscal year is not sufficient to fulfill the relevant 
work activation participation goal under subsection 
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(i) during that quarter, the supplemental nutrition 
assistance program funding for the State under this 
Act shall be reduced for the fiscal quarter that be-
gins 180 days after the first day of the quarter in 
which the inadequate performance occurred in ac-
cordance with paragraph (3). 
‘‘(3) FUNDING IN PENALIZED QUARTER.—The 
total amount of funding a State shall receive for all 
households with eligible participants for a quarter 
for which funding is reduced under paragraph (2) 
shall equal the product obtained by multiplying— 
‘‘(A) the total amount of funding that the 
State would have received in the preceding 
quarter for all households with eligible partici-
pants if no reduction had been in place; by 
‘‘(B) the ratio of all countable participants 
to all eligible participants (as determined under 
subsection (j)(4)) for the quarter that began 
180 days before the first day of the quarter for 
which funding is reduced. 
‘‘(l) FUNDING
TO
ADMINISTER
WORK
ACTIVA-
TION.— 
‘‘(1) TANF FUNDING.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, for fiscal year 2018 and 
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each subsequent fiscal year, a State that re-
ceives supplemental nutrition assistance pro-
gram funds under this Act may use during that 
fiscal year to carry out the work activation pro-
gram of the State under this section— 
‘‘(i) any of the Federal funds available 
to the State through the State program 
funded under part A of title IV of the So-
cial Security Act (42 U.S.C. 601 et seq.) 
in that fiscal year; and 
‘‘(ii) any of the funds from State 
sources allocated to the operation of the 
program described in clause (i). 
‘‘(B) EFFECT.—Any State that uses State 
funds allocated to the State program funded 
under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.) to administer the 
work activation program of that State under 
this section may treat those funds as qualified 
State expenditures (as defined in section 
409(a)(7)(B)(i) of the Social Security Act (42 
U.S.C. 609(a)(7)(B)(i))) for purposes of meet-
ing the requirements of section 409(a)(7) of the 
Social Security Act (42 U.S.C. 609(a)(7)) in 
that fiscal year. 
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‘‘(2) WORKFORCE
INVESTMENT
ACT
FUND-
ING.—Notwithstanding any other provision of law, 
for fiscal year 2018 and each subsequent fiscal year, 
a State that receives Federal funds under the Work-
force Investment Act of 1998 (29 U.S.C. 2801 et 
seq.) may use up to 50 percent of those funds dur-
ing that fiscal year to carry out the work activation 
program of the State under this section. 
‘‘(3) SUPPLEMENTAL
NUTRITION
ASSISTANCE 
PROGRAM EMPLOYMENT AND TRAINING PROGRAM.— 
Notwithstanding any other provision of law, for fis-
cal year 2018 and each subsequent fiscal year, a 
State that receives Federal funds under this Act for 
an employment and training program under section 
6(d) may use those funds during that fiscal year to 
carry out the work activation program of the State 
under this section.’’. 
TITLE III—PREPARING MORE 
TANF RECIPIENTS FOR WORK 
SEC. 301. WORK PREPARATION PROGRAM. 
Section 407 of the Social Security Act (42 U.S.C. 
607) is amended by adding at the end the following new 
subsection: 
‘‘(j) WORK PREPARATION PROGRAM.— 
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‘‘(1) IN GENERAL.—A State to which a grant 
is made under section 403 for a fiscal year, in addi-
tion to achieving the minimum participation rates 
required for the fiscal year under paragraphs (1) 
and (2) of subsection (a), shall operate a work prep-
aration program for eligible participants that meets 
the requirements of this subsection and shall achieve 
the minimum work preparation participation rate 
specified in the following table for each quarter of 
the fiscal year with respect to all eligible participants 
receiving assistance under the State program funded 
under this part or any other State program funded 
with qualified State expenditures (as defined in sec-
tion 409(a)(7)(B)(i)) who are not engaged in em-
ployment in any month during the fiscal year: 
‘‘If the fiscal year is: 
The minimum work 
preparation rate 
for the quarter is: 
2018 .....................................................................................
25 percent
2019 .....................................................................................
50 percent
2020 or thereafter ...............................................................
75 percent. 
‘‘(2) ELIGIBLE PARTICIPANT DEFINED.—In this 
subsection, the term ‘eligible participant’ means, 
with respect to a month, an individual who— 
‘‘(A) is a parent of a family in which a 
parent or child receives assistance under the 
State program funded under this part or any 
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other State program funded with qualified 
State expenditures (as defined in section 
409(a)(7)(B)(i)) in the month; and 
‘‘(B) is employed less than 40 hours in the 
month. 
‘‘(3) SPECIAL RULES FOR MARRIED COUPLES 
WITH CHILDREN.—In the case of a married 2-parent 
family— 
‘‘(A) the parents shall only be considered 
to be eligible participants for a month for pur-
poses of this subsection if the sum of the com-
bined hours of employment for the month for 
both spouses is less than 40 hours; 
‘‘(B) if the parents are eligible participants 
for a month for purposes of this subsection, 
only one of the parents shall be required to par-
ticipate in the work preparation program under 
this subsection in a month; and 
‘‘(C) the sum of the hours required of the 
parents for purposes of meeting the monthly 
minimum participation rate required for pur-
poses of subsection (a) and meeting the month-
ly work preparation rate required under this 
subsection shall not be greater than the hours 
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required for a single head of household for pur-
poses of meeting such rates. 
‘‘(4) WORK PREPARATION REQUIREMENTS.—In 
order to be considered to be engaging in work prepa-
ration for month, an eligible participant shall engage 
in one or more work preparation activities (as de-
fined in paragraph (5)) for at least an average of 30 
hours per week during the month. 
‘‘(5) WORK
PREPARATION
ACTIVITIES
DE-
FINED.—In this subsection, the term ‘work prepara-
tion activity’ means the following: 
‘‘(A) Work experience (including work as-
sociated with the refurbishing of publicly as-
sisted housing) if sufficient private sector em-
ployment is not available. 
‘‘(B) On-the-job training. 
‘‘(C) Job readiness assistance. 
‘‘(D) Community service programs (not to 
exceed the maximum number of hours deter-
mined under paragraph (9)). 
‘‘(E) Workfare programs (not to exceed 
the maximum number of hours determined 
under paragraph (9)). 
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‘‘(F) Vocational educational training (not 
to exceed 12 months with respect to any indi-
vidual). 
‘‘(G) Job skills training directly related to 
employment. 
‘‘(H) Education directly related to employ-
ment, in the case of an eligible participant who 
has not received a high school diploma or a cer-
tificate of high school equivalency. 
‘‘(I) Satisfactory attendance at secondary 
school or in a course of study leading to a cer-
tificate of general equivalence, in the case of an 
eligible participant who has not completed sec-
ondary school or received such a certificate. 
‘‘(J) The provision of child care services to 
an individual who is participating in a commu-
nity service program. 
‘‘(K) Supervised job search (as defined in 
paragraph (7)). 
‘‘(6) PRIORITY FOR COMMUNITY SERVICE.—At 
least 20 percent of the eligible participants who are 
required to participate in work preparation for a 
month shall participate in a community service pro-
gram or a workfare program. 
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‘‘(7) SUPERVISED JOB SEARCH DEFINED.—In 
this subsection, the term ‘supervised job search’ 
means a job search program that has the following 
characteristics: 
‘‘(A) The job search occurs at an official 
location where the presence and activity of the 
eligible participant can be directly observed, su-
pervised, and monitored. 
‘‘(B) The eligible participant’s entry, time 
onsite, and exit from the official job search lo-
cation are recorded in a manner that prevents 
fraud. 
‘‘(C) The eligible participant is expected to 
remain and undertake job search activities at 
the job search center. 
‘‘(D) The quantity of time the eligible par-
ticipant is observed and monitored engaging in 
job search at the official location is recorded for 
purposes of compliance with the work and work 
activation requirements of sections 6(o) and 30 
of the Food and Nutrition Act of 2008. 
‘‘(8) PENALTIES AGAINST NONPERFORMING IN-
DIVIDUALS.— 
‘‘(A) IN GENERAL.—If an eligible partici-
pant fails to fully perform the work preparation 
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activities required in accordance with this sub-
section, the State shall— 
‘‘(i) reduce the amount of assistance 
otherwise payable to the entire family of 
the eligible participant pro rata (or more, 
at the option of the State) with respect to 
the month immediately after any month in 
which the eligible participant so fails to 
perform; or 
‘‘(ii) terminate such assistance. 
‘‘(B) PRO
RATA
REDUCTION.—For pur-
poses of subparagraph (A)(i), the amount of a 
pro rata reduction in assistance shall be deter-
mined by multiplying the amount of monthly 
assistance that would, in the absence of the ap-
plication of this paragraph be paid to the entire 
family, by the ratio of— 
‘‘(i) the hours of required work and 
work preparation activities performed by 
the eligible participant during the month; 
over 
‘‘(ii) the number or hours of work and 
work preparation the State required the el-
igible participant to perform in accordance 
with the requirements of this section. 
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‘‘(9) LIMITATION
ON
COUNTABLE
HOURS
OF 
PARTICIPATION
IN
COMMUNITY
SERVICE
OR 
WORKFARE.— 
‘‘(A) IN GENERAL.—The maximum num-
ber of hours that an eligible participant may be 
counted as engaging in a community service 
program or a workfare program in a month for 
purposes of meeting the minimum work prepa-
ration rates for the month under this subsection 
shall not exceed the total dollar cost of all 
means-tested benefits received by the eligible 
participant’s family for the month divided by 
the Federal minimum wage. 
‘‘(B) TOTAL DOLLAR COST OF ALL MEANS- 
TESTED BENEFITS DEFINED.— 
‘‘(i) IN GENERAL.—In this subsection, 
the term ‘total dollar cost of all means- 
tested benefits’ means the sum of the dol-
lar cost of all benefits received by a family 
under— 
‘‘(I) the supplemental nutrition 
assistance program established under 
the Food and Nutrition Act of 2008 
(7 U.S.C. 2011 et seq.); 
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‘‘(II) the State program funded 
under this part or any other State 
program funded with qualified State 
expenditures (as defined in section 
409(a)(7)(B)(i)); and 
‘‘(III) any assistance provided to 
a household, landlord, or public hous-
ing agency (as defined in section 
3(b)(6) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(b)(6))) 
to subsidize the rental payment for a 
dwelling unit, including assistance 
provided for public housing dwelling 
units under section 3 of the United 
States Housing Act of 1937 (42 
U.S.C. 1437a) and assistance pro-
vided under section 8 of that Act (42 
U.S.C. 1437f). 
‘‘(ii) VALUE
OF
BENEFITS
DURING 
SANCTION.—For purposes of clause (i), if 
the dollar value of one or more benefits re-
ceived by a household in a month has been 
reduced under paragraph (8) or another 
sanction requirement, the calculated dollar 
value of the sanctioned benefits shall equal 
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the dollar value of the benefit that would 
have been received if the benefit had not 
been reduced by the sanction. 
‘‘(C) ADDITIONAL
ACTIVITIES.—Nothing 
in this paragraph shall prevent a State from re-
quiring an eligible participant to engage in ac-
tivities not described in subparagraph (A) for 
additional hours during a month. 
‘‘(10) CALCULATION
OF
WORK
PREPARATION 
PARTICIPATION RATES.— 
‘‘(A) DEFINITION OF SANCTIONED RECIPI-
ENT.—In this subsection, the term ‘sanctioned 
recipient’ means any eligible participant who— 
‘‘(i) was required to participate in 
work preparation in a month; 
‘‘(ii) failed to perform the assigned 
work and work preparation activities so as 
to meet the relevant hourly requirements; 
and 
‘‘(iii) was sanctioned by a reduced as-
sistance payment in the subsequent month 
under paragraph (8). 
‘‘(B) REQUIREMENTS.—The work prepara-
tion participation rate for a State for any quar-
ter of a fiscal year shall equal the average of 
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the monthly participation rates for the State 
during the 3 months of that quarter. 
‘‘(C) MONTHLY
PARTICIPATION
RATE.— 
For purposes of subparagraph (B), the monthly 
participation rate shall equal the ratio of all 
countable participants to all eligible participants 
in the month, as determined under subpara-
graph (D). 
‘‘(D) RATIO OF ALL COUNTABLE PARTICI-
PANTS TO ALL ELIGIBLE PARTICIPANTS.—Sub-
ject to subparagraph (E), the ratio of all count-
able participants to all eligible participants in a 
month equals the proportion that— 
‘‘(i) the sum obtained by adding— 
‘‘(I) 
all 
eligible 
participants 
who— 
‘‘(aa) were required by the 
State to engage in work prepara-
tion during the month; and 
‘‘(bb) fulfilled the criteria 
for successful engagement in 
work 
preparation 
during 
the 
month; and 
‘‘(II) all sanctioned recipients for 
that month; bears to 
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‘‘(ii) the average number of eligible 
participants in the State in that month. 
‘‘(E) 
MULTIPLE
ELIGIBLE
PARTICI-
PANTS.—A married couple household consisting 
of more than 1 eligible participant shall be 
counted as a single eligible participant for pur-
poses of calculating the participation rate under 
this paragraph. 
‘‘(11) PENALTIES
FOR
INADEQUATE
STATE 
PERFORMANCE.— 
‘‘(A) IN GENERAL.—Beginning in the first 
quarter of fiscal year 2018 and for each subse-
quent quarter of fiscal year 2018 and of each 
subsequent fiscal year, each State shall count 
the monthly average number of countable par-
ticipants under this subsection. 
‘‘(B) REDUCTION
IN
FUNDING.—If the 
monthly average number of countable partici-
pants in a State is not sufficient to meet the 
work preparation participation rate required 
under paragraph (1) during that quarter, the 
grant payable to the State under section 
403(a)(1) shall be reduced for the fiscal quarter 
that begins 180 days after the first day of the 
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quarter in which the inadequate performance 
occurred in accordance with subparagraph (C). 
‘‘(C) FUNDING IN PENALIZED QUARTER.— 
The total amount of funding a State shall re-
ceive for a quarter for which funding is reduced 
under subparagraph (B) shall equal the product 
obtained by multiplying— 
‘‘(i) the total amount of funding that 
the State would have received in the pre-
ceding quarter for the grant payable to the 
State under section 403(a)(1) if no reduc-
tion had been in place; by 
‘‘(ii) the ratio of all countable partici-
pants to all eligible participants (as deter-
mined under paragraph (10)(D)) for the 
quarter that began 180 days before the 
first day of the quarter for which funding 
is reduced.’’. 
SEC. 302. CHANGES TO MANDATORY WORK REQUIRE-
MENTS. 
(a) ELIMINATION
OF
SEPARATE
PARTICIPATION 
RATE REQUIREMENTS FOR 2-PARENT FAMILIES.— 
(1) IN GENERAL.—Section 407 of the Social 
Security Act (42 U.S.C. 607) is amended— 
(A) in subsection (a)— 
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