section shall be reduced proportionally to satisfy the 
conditions in such paragraphs. 
‘‘(e) ALLOTMENTS FOR GRANTS TO STATES.—From 
the amount provided for grants to States under subsection 
(c), the Secretary shall allot for the State grantee in each 
State an amount that bears the same ratio to such amount 
as the product of the number of individuals 55 years of 
age or older in the State and the allotment percentage of 
such State bears to the sum of the corresponding product 
for all States, except as follows: 
‘‘(1) MINIMUM ALLOTMENT.—No State shall be 
provided an amount under this subsection that is 
less than 1⁄2 of 1 percent of the amount provided 
under subsection (c) for State grantees in all of the 
States. 
‘‘(2) HOLD
HARMLESS.—If the amount pro-
vided under subsection (c) is— 
‘‘(A) equal to or less than the amount nec-
essary to maintain the fiscal year 2006 level of 
activities, allotments for State grantees in each 
State shall be proportional to their fiscal year 
2006 level of activities; or 
‘‘(B) greater than the amount necessary to 
maintain the fiscal year 2006 level of activities, 
no State shall be provided a percentage increase 
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above the fiscal year 2006 level of activities for 
State grantees in the State that is less than 30 
percent of such percentage increase above the 
fiscal year 2006 level of activities for State 
grantees in all of the States. 
‘‘(3) REDUCTION.—Allotments for States not 
affected by paragraphs (1) and (2)(B) of this sub-
section shall be reduced proportionally to satisfy the 
conditions in such paragraphs. 
‘‘(f) ALLOTMENT PERCENTAGE.—For purposes of 
subsections (d) and (e)— 
‘‘(1) the allotment percentage of each State 
shall be 100 percent less that percentage that bears 
the same ratio to 50 percent as the per capita in-
come of such State bears to the per capita income 
of the United States, except that— 
‘‘(A) the allotment percentage shall be not 
more than 75 percent and not less than 33 per-
cent; and 
‘‘(B) the allotment percentage for the Dis-
trict of Columbia and the Commonwealth of 
Puerto Rico shall be 75 percent; 
‘‘(2) the number of individuals 55 years of age 
or older in any State and in all States, and the per 
capita income in any State and in all States, shall 
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be determined by the Secretary on the basis of the 
most satisfactory data available to the Secretary; 
and 
‘‘(3) for the purpose of determining the allot-
ment percentage, the term ‘United States’ means 
the 50 States and the District of Columbia. 
‘‘(g) DEFINITIONS.—For purposes of this section: 
‘‘(1) COST PER AUTHORIZED POSITION.—The 
term ‘cost per authorized position’ means the sum 
of— 
‘‘(A) the hourly minimum wage rate speci-
fied in section 6(a)(1) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206(a)(1)), multi-
plied by the number of hours equal to the prod-
uct of 21 hours and 52 weeks; 
‘‘(B) an amount equal to 11 percent of the 
amount specified under subparagraph (A), for 
the purpose of covering Federal payments for 
fringe benefits; and 
‘‘(C) an amount determined by the Sec-
retary, for the purpose of covering Federal pay-
ments for the remainder of all other program 
and administrative costs. 
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‘‘(2) FISCAL
YEAR
2006
LEVEL
OF
ACTIVI-
TIES.—The term ‘fiscal year 2006 level of activities’ 
means— 
‘‘(A) with respect to public and nonprofit 
private agency and organization grantees that 
operate under this title under national grants 
from the Secretary, their level of activities for 
fiscal year 2006; and 
‘‘(B) with respect to State grantees, their 
level of activities for fiscal year 2006. 
‘‘(3) GRANTS TO STATES.—The term ‘grants to 
States’ means grants made under this title by the 
Secretary to the States. 
‘‘(4) LEVEL OF ACTIVITIES.—The term ‘level of 
activities’ means the number of authorized positions 
multiplied by the cost per authorized position. 
‘‘(5) NATIONAL GRANTS.—The term ‘national 
grants’ means grants made under this title by the 
Secretary to public and nonprofit private agency and 
organization grantees that operate under this title 
under national grants from the Secretary. 
‘‘(6) STATE.—The term ‘State’ does not include 
Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and the United States 
Virgin Islands. 
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‘‘SEC. 507. EQUITABLE DISTRIBUTION. 
‘‘(a) INTERSTATE ALLOCATION.—In making grants 
under section 506, the Secretary shall ensure, to the ex-
tent feasible, an equitable distribution of activities under 
such grants, in the aggregate, among the States, taking 
into account the needs of underserved States. 
‘‘(b) INTRASTATE ALLOCATION.—The amount allo-
cated for projects within each State under section 506 
shall be allocated among areas in the State in an equitable 
manner, taking into consideration the State priorities set 
out in the State plan in effect under section 503(a). 
‘‘SEC. 508. REPORT. 
‘‘To carry out the Secretary’s responsibilities for re-
porting in section 503(g), the Secretary shall require the 
State agency for each State that receives funds under this 
title to prepare and submit a report at the beginning of 
each fiscal year on such State’s compliance with section 
507(b). Such report shall include the names and geo-
graphic location of all projects assisted under this title and 
carried out in the State and the amount allocated to each 
such project under section 506. 
‘‘SEC. 509. EMPLOYMENT ASSISTANCE AND FEDERAL HOUS-
ING AND FOOD STAMP PROGRAMS. 
‘‘Funds received by eligible individuals from projects 
carried out under the program established in this title 
shall not be considered to be income of such individuals 
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for purposes of determining the eligibility of such individ-
uals, or of any other individuals, to participate in any 
housing program for which Federal funds may be available 
or for any income determination under the Food Stamp 
Act of 1977. 
‘‘SEC. 510. ELIGIBILITY FOR WORKFORCE INVESTMENT AC-
TIVITIES. 
‘‘Eligible individuals under this title may be consid-
ered by local workforce investment boards established 
under title I of the Workforce Investment Act of 1998 to 
satisfy the requirements for receiving services under such 
title I that are applicable to adults. 
‘‘SEC. 511. TREATMENT OF ASSISTANCE. 
‘‘Assistance provided under this title shall not be con-
sidered to be financial assistance described in section 
245A(h)(1)(A) of the Immigration and Nationality Act (8 
U.S.C. 1255A(h)(1)(A)). 
‘‘SEC. 512. COORDINATION WITH THE WORKFORCE INVEST-
MENT ACT OF 1998. 
‘‘(a) PARTNERS.—Grantees under this title shall be 
One-Stop partners as described in subparagraphs (A) and 
(B)(vi) of section 121(b)(1) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2841(b)(1)) in the One-Stop deliv-
ery system established under section 134(c) of such Act 
(29 U.S.C. 2864(c)) for the appropriate local workforce 
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investment areas, and shall carry out the responsibilities 
relating to such partners. 
‘‘(b) COORDINATION.—In local workforce investment 
areas where more than 1 grantee under this title provides 
services, the grantees shall— 
‘‘(1) coordinate their activities related to the 
One-Stop delivery system; and 
‘‘(2) shall be signatories of the memorandum of 
understanding established under section 121(c) of 
the Workforce Investment Act of 1998 (29 U.S.C. 
2841(c)). 
‘‘SEC. 513. PERFORMANCE. 
‘‘(a) MEASURES.— 
‘‘(1) ESTABLISHMENT
OF
MEASURES.—The 
Secretary shall establish, in consultation with grant-
ees, subgrantees, and host agencies under this title, 
States, older individuals, area agencies on aging, and 
other organizations serving older individuals, per-
formance measures for each grantee for projects and 
services carried out under this title. 
‘‘(2) CONTENT.— 
‘‘(A) COMPOSITION
OF
MEASURES.—The 
performance measures established by the Sec-
retary in accordance with paragraph (1) shall 
consist of— 
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‘‘(i) core indicators of performance 
specified in subsection (b)(1) and the ex-
pected levels of performance applicable to 
each core indicator of performance, and 
‘‘(ii) additional indicators of perform-
ance specified in subsection (b)(2) 
‘‘(B) CONTINUOUS
IMPROVEMENT.—The 
measures described in subparagraph (A)(i) shall 
be designed to promote continuous improvement 
in performance. 
‘‘(C) EXPECTED
LEVELS
OF
PERFORM-
ANCE.—The Secretary and each grantee shall 
reach agreement on the expected levels of per-
formance for each program year for each of the 
core indicators of performance specified in sub-
section (b)(1). The agreement shall take into 
account the factors described in subparagraphs 
(B) and (D) and other appropriate factors as 
determined by the Secretary, and shall be con-
sistent with the requirements of subparagraph 
(E). Funds under the grant may not be award-
ed until such agreement is reached. 
‘‘(D) ADJUSTMENT.—The expected levels 
of performance described in subparagraph (C) 
applicable to a grantee shall be adjusted after 
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the agreement under subparagraph (C) has 
been reached only with respect to the following 
factors: 
‘‘(i) High rates of unemployment or of 
poverty or welfare participation, in the 
areas served by a grantee, relative to other 
areas of the State or Nation. 
‘‘(ii) Significant downturns in the 
areas served by the grantee or in the na-
tional economy. 
‘‘(iii) Significant numbers or propor-
tions of participants with 1 or more bar-
riers to employment served by a grantee 
relative to grantees serving other areas of 
the State or Nation. 
‘‘(iv) Changes in Federal, State, or 
local minimum wage requirements. 
‘‘(E) PLACEMENT.— 
‘‘(i) LEVEL OF PERFORMANCE.—For 
all grantees, the Secretary shall establish a 
level of performance of not less than the 
percentage specified in clause (ii) (adjusted 
in accordance with subparagraph (D)) for 
the entry into unsubsidized employment 
core indicator of performance described in 
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subsection (b)(1)(A). If a grantee achieved 
a level of performance less than the per-
centage specified in such clause for the 
preceding fiscal year for which results are 
available before the enactment of the Sen-
ior Independence Act of 2006, the Sec-
retary shall provide technical assistance to 
assist such grantee to achieve the applica-
ble percentage specified in such clause. 
‘‘(ii) REQUIRED
PLACEMENT
PER-
CENTAGES.—The minimum percentage for 
the entry into unsubsidized employment 
described in subsection (b)(1)(A) is— 
‘‘(I) 22 percent in fiscal year 
2007; 
‘‘(II) 24 percent in fiscal year 
2008; 
‘‘(III) 26 percent in fiscal year 
2009; 
‘‘(IV) 28 percent in fiscal year 
2010; and 
‘‘(V) 30 percent in fiscal year 
2011. 
‘‘(3) PERFORMANCE
EVALUATION
OF
GRANT-
EES.—The Secretary shall annually establish na-
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tional performance measures for each grantee under 
this title, which shall be applicable to the grantee 
without regard to whether such grantee operates 
such program directly or through contracts, grants, 
or agreements with other entities. The measures 
shall include the core indicators of performance and 
expected level of performance for each such indi-
cator, and the additional indicators of performance. 
In addition, the Secretary shall annually publish the 
actual performance of each grantee with respect 
to— 
‘‘(A) the levels achieved for each of the 
core indicators of performance, compared to ex-
pected levels of performance under paragraph 
(2)(C) (including any adjustments to such levels 
made in accordance with to paragraph (2)(D)); 
and 
‘‘(B) the levels achieved for each of the ad-
ditional indicators of performance. 
‘‘(4) LIMITATION.—An agreement to be evalu-
ated on the performance measures shall be a re-
quirement for application for, and a condition of, all 
grants authorized by this title. 
‘‘(b) INDICATORS OF PERFORMANCE.— 
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‘‘(1) CORE INDICATORS.—The core indicators 
of performance described in subsection (a)(2)(A)(i) 
shall consist of— 
‘‘(A) entry into unsubsidized employment; 
‘‘(B) retention in unsubsidized employment 
for 6 months; and 
‘‘(C) earnings. 
‘‘(2) ADDITIONAL INDICATORS.—The additional 
indicators of performance described in subsection 
(a)(2)(A)(ii) shall consist of— 
‘‘(A) community services provided; 
‘‘(B) retention in unsubsidized employment 
for 1 year; 
‘‘(C) the number of eligible individuals 
served, including the number of participating 
individuals described in section 516(2)(A)(i), 
and 
‘‘(D) any other indicators of performance 
that the Secretary determines to be appropriate 
to evaluate services and performance. 
‘‘(c) DEFINITIONS OF INDICATORS.— 
‘‘(1) IN GENERAL.—The Secretary, after con-
sultation with national and State grantees, rep-
resentatives of business and labor organizations, and 
providers of services, shall issue rules that define the 
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indicators of performance described in subsection 
(b). 
‘‘(d) CORRECTIVE EFFORTS.— 
‘‘(1) NATIONAL GRANTEES.— 
‘‘(A) IN
GENERAL.—Not later than 120 
days after the end of each program year, the 
Secretary shall determine if a national grantee 
awarded a grant under section 514 has met the 
expected levels of performance established 
under subsection (a)(2)(C) (including any ad-
justments to such levels made in accordance 
with to subsection (a)(2)(D)) for the core indi-
cators of performance described in subsection 
(b)(1). 
‘‘(B) TECHNICAL
ASSISTANCE
AND
COR-
RECTIVE ACTION PLAN.— 
‘‘(i) IN
GENERAL.—If the Secretary 
determines that a grantee fails to meet the 
expected levels of performance described in 
paragraph (1), the Secretary shall provide 
technical assistance and require such 
grantee to submit a corrective action plan 
not later than 160 days after the end of 
the program year. 
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‘‘(ii) CONTENT.—The plan submitted 
under subparagraph (A) shall detail the 
steps the grantee will take to meet the na-
tional performance measures in the next 
program year. 
‘‘(2) STATE GRANTEES.— 
‘‘(A) IN
GENERAL.—Not later than 120 
days after the end of the program year, the 
Secretary shall determine if a State grantee al-
lotted funds under section 506(e) has met the 
expected levels of performance established 
under subsection (a)(2)(C) (including any ad-
justments to such levels made in accordance 
with to subsection (a)(2)(D)) for the core indi-
cators of performance described in subsection 
(b)(1). 
‘‘(B) TECHNICAL
ASSISTANCE
AND
COR-
RECTIVE
ACTION
PLAN.—If a State fails to 
meet the levels of performance described in sub-
paragraph (A), the Secretary shall provide tech-
nical assistance and require the State to submit 
a corrective action plan not later than 160 days 
after the end of the program year. 
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