‘‘(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: 
‘‘(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. 
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‘‘(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 
‘‘(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).’’. 
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SEC. 302. REPORTS TO BUDGET COMMITTEES. 
Section 202(e)(1) of the Congressional Budget Act 
of 1974 (2 U.S.C. 602(e)(1)) is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’; and 
(2) by adding at the end the following: 
‘‘(B)(i) The Director shall include in each re-
port submitted to the Committees on the Budget of 
the House of Representatives and the Senate under 
subparagraph (A) the information described in 
clause (ii) beginning on the earlier of— 
‘‘(I) the first fiscal year that begins after 
the date of enactment of this subparagraph and 
after any monthly rate of unemployment during 
the immediately preceding fiscal year is below 6 
percent; or 
‘‘(II) fiscal year 2016. 
‘‘(ii) The Director shall include the following in-
formation for the fiscal year commencing on October 
1 of the year in which the report is submitted and 
for each of the ensuing 4 fiscal years: 
‘‘(I) The Congressional Budget Office 
baseline level of means-tested welfare spending. 
‘‘(II) The aggregate level of means-tested 
welfare spending computed by taking the aggre-
gate level of means-tested welfare spending for 
fiscal year 2007 and adjusting that for inflation 
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according to the procedures specified in clause 
(iii). 
‘‘(iii) In preparing the information required to 
be included under this subparagraph— 
‘‘(I) means-tested welfare spending relat-
ing to medical assistance programs shall be ad-
justed for inflation according to the price index 
for personal consumption expenditures for 
health products and services as calculated by 
the Bureau of Economic Analysis; and 
‘‘(II) all other means-tested welfare spend-
ing shall be adjusted for inflation according to 
the weighted price index for personal consump-
tion expenditures excluding health products and 
services as calculated by the Bureau of Eco-
nomic Analysis.’’. 
SEC. 303. CONTENT OF CONCURRENT RESOLUTIONS ON 
THE BUDGET. 
Section 301 of the Congressional Budget Act of 1974 
(2 U.S.C. 632) is amended by adding at the end the fol-
lowing: 
‘‘(j) MEANS-TESTED WELFARE SPENDING.— 
‘‘(1) IN GENERAL.—The concurrent resolution 
on the budget for a fiscal year shall set forth the ap-
propriate level for aggregate means-tested welfare 
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spending for the first fiscal year of that concurrent 
resolution and for at least each of the 4 ensuing fis-
cal years beginning on the earlier of— 
‘‘(A) the first fiscal year that begins after 
the date of enactment of this subsection and 
after any monthly rate of unemployment during 
the immediately preceding fiscal year is below 6 
percent; or 
‘‘(B) fiscal year 2016. 
‘‘(2) SETTING LEVEL.—The level described in 
paragraph (1) shall not exceed the aggregate level of 
Federal means-tested welfare spending for fiscal 
year 2007, adjusted for inflation as follows: 
‘‘(A) In fiscal year 2016, the sum of 
$825,000,000,000. 
‘‘(B) In fiscal year 2017, the sum of 
$750,000,000,000. 
‘‘(C) In fiscal year 2018 and in subsequent 
fiscal years, the aggregate level of Federal 
means-tested welfare spending for fiscal year 
2007, adjusted for inflation as follows: 
‘‘(i) Means-tested welfare spending re-
lating to medical assistance programs shall 
be adjusted for inflation according to the 
price index for personal consumption ex-
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penditures for health products and services 
as calculated by the Bureau of Economic 
Analysis. 
‘‘(ii) All other means-tested welfare 
spending shall be adjusted for inflation ac-
cording to the weighted price index for per-
sonal consumption expenditures excluding 
health products and services as calculated 
by the Bureau of Economic Analysis.’’. 
SEC. 304. ALLOCATIONS OF MEANS-TESTED WELFARE 
SPENDING. 
(a) IN GENERAL.—Section 302 of the Congressional 
Budget Act of 1974 (2 U.S.C. 633) is amended by adding 
at the end the following: 
‘‘(h) MEANS-TESTED WELFARE SPENDING LIMIT.— 
‘‘(1) FURTHER
DIVISION
OF
AMOUNTS.—For 
any concurrent resolution on the budget in which 
levels for aggregate means-tested welfare spending 
are set forth under section 301(j), in the House of 
Representatives and the Senate, the amounts allo-
cated under subsection (a) shall be further divided 
to establish an allocation of— 
‘‘(A) total new budget authority and total 
outlays for discretionary means-tested welfare 
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spending in appropriation measures for the first 
fiscal year of that concurrent resolution; and 
‘‘(B) total new budget authority and total 
outlays for mandatory means-tested welfare 
spending for the first fiscal year of that concur-
rent resolution and at least each of the ensuing 
4 fiscal years to all other committees of the 
House of Representatives and the Senate that 
have jurisdiction over legislation providing man-
datory means-tested welfare spending. 
‘‘(2) POINT OF ORDER.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), it shall not be in order in 
the House of Representatives or the Senate to 
consider any bill, joint resolution, amendment, 
or amendment between the Houses if— 
‘‘(i) the enactment of such bill or res-
olution as reported; 
‘‘(ii) the adoption and enactment of 
such amendment; 
‘‘(iii) the enactment of such bill or 
resolution in the form recommended in 
such conference report; or 
‘‘(iv) the enactment of such amend-
ment between the Houses, 
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would cause the applicable allocation of new 
budget authority or outlays made under sub-
paragraph (A) or (B) of paragraph (1) for a 
fiscal year to be exceeded. 
‘‘(B) EXCEPTION.—The limits on the allo-
cation of new budget authority or outlays made 
under subparagraph (A) or (B) of paragraph 
(1) shall not be in effect for a fiscal year if the 
average monthly unemployment rate in the pre-
ceding fiscal year exceeded 7.5 percent.’’. 
(b) CONFORMING AMENDMENT.—Section 302(b) of 
the Congressional Budget Act of 1974 is amended by 
striking ‘‘under subsection (a)’’ and inserting ‘‘under sub-
sections (a) and (h)’’. 
SEC. 305. RECONCILIATION. 
Section 310(a) of the Congressional Budget Act of 
1974 (2 U.S.C. 641(a)) is amended— 
(1) in paragraph (3), by striking ‘‘or’’ at the 
end; 
(2) by redesignating paragraph (4) as para-
graph (5); 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) specify the total amount by which new 
budget authority for such fiscal year for mandatory 
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means-tested welfare spending contained in laws, 
bills, and resolutions within the jurisdiction of a 
committee is to be changed and direct that com-
mittee to determine and recommend changes to ac-
complish a change of such total amount, which 
amount shall be the amount by which the Congres-
sional Budget Office baseline level of spending for 
aggregate mandatory means-tested welfare programs 
exceeds the allocation made pursuant to section 
302(h)(1)(B) for such fiscal year; and’’; and 
(4) in paragraph (5), as so redesignated, by 
striking ‘‘and (3)’’ and inserting ‘‘(3), and (4)’’. 
TITLE IV—GRANTS TO PROMOTE 
SELF-SUFFICIENCY 
SEC. 401. GRANTS TO STATES. 
(a) PURPOSE.—The purpose of this title is to encour-
age States to develop policies to promote self-sufficiency 
and prosperity and to reduce poverty and Government de-
pendence. 
(b) GRANTS.—The Social Security Act is amended by 
adding at the end the following: 
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‘‘TITLE XXII—GRANTS TO STATES 
TO 
PROMOTE 
SELF-SUFFI-
CIENCY 
AND 
PROSPERITY 
AND TO REDUCE DEPEND-
ENCE 
‘‘SEC. 2201. GRANTS TO STATES. 
‘‘(a) IN GENERAL.—The Secretary may provide 
grants to States to reward reductions in poverty and Gov-
ernment dependence and increases in self-sufficiency. 
‘‘(b) ALLOCATION OF GRANTS TO STATES.—For each 
fiscal year for which funds are made available under sub-
section (e), the Secretary shall make a grant in an amount 
equal to $100,000,000 to each of the 3 States with the 
greatest percentage increases in the self-sufficiency ratio 
of the State for the preceding fiscal year over the self- 
sufficiency ratio of the State for fiscal year 2007, as com-
pared with the changes in that ratio for each other State, 
subject to subsection (c). 
‘‘(c) LIMITATION ON ELIGIBILITY FOR GRANTS.—A 
State shall not be eligible for a grant under this title for 
a fiscal year unless the self-sufficiency ratio of the State 
for the fiscal year is greater than the self-sufficiency ratio 
of the State for fiscal year 2007. 
‘‘(d) DEFINITIONS.—In this title: 
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‘‘(1) The term ‘self-sufficient family’ means a 
family (including a 1-person family) whose combined 
income, excluding receipt of means-tested welfare 
spending (as defined in section 3(11)(A) of the Con-
gressional Budget and Impoundment Control Act of 
1974), exceeds the poverty line (within the meaning 
of section 673(2) of the Omnibus Budget Reconcili-
ation Act of 1981, including any revision required by 
such section applicable to a family of the size in-
volved). 
‘‘(2) The term ‘self-sufficiency ratio’ means, 
with respect to a State and a fiscal year— 
‘‘(A) the number of self-sufficient families 
residing in the State during the fiscal year that 
are headed by able-bodied individuals who have 
not attained 63 years of age; divided by 
‘‘(B) the total number of families residing 
in the State during the fiscal year that are 
headed by able-bodied individuals who have not 
attained 63 years of age. 
‘‘(3) The term ‘State’ means the 50 States and 
the District of Columbia. 
‘‘(e) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.—For grants under this title, there are author-
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ized to be appropriated to the Secretary $300,000,000 for 
fiscal year 2016 and each succeeding fiscal year.’’. 
TITLE V—PROHIBITION ON 
FUNDING OF ABORTION 
SEC. 501. PROHIBITION ON FUNDING FOR ABORTIONS. 
No funds authorized or appropriated by Federal law, 
and none of the funds in any trust fund to which funds 
are authorized or appropriated by Federal law, shall be 
expended for any abortion. 
SEC. 502. PROHIBITION ON FUNDING FOR HEALTH BENE-
FITS PLANS THAT COVER ABORTION. 
None of the funds authorized or appropriated by Fed-
eral law, and none of the funds in any trust fund to which 
funds are authorized or appropriated by Federal law, shall 
be expended for health benefits coverage that includes cov-
erage of abortion. 
SEC. 503. PROHIBITION ON TAX BENEFITS RELATING TO 
ABORTION. 
For taxable years beginning after the date of the en-
actment of this section, no credit shall be allowed under 
the internal revenue laws with respect to amounts paid 
or incurred for an abortion or with respect to amounts 
paid or incurred for a health benefits plan (including pre-
mium assistance) that includes coverage of abortion. 
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SEC. 504. CONSTRUCTION RELATING TO SEPARATE COV-
ERAGE. 
Nothing in this title shall be construed as prohibiting 
any individual, entity, or State or locality from purchasing 
separate abortion coverage or health benefits coverage 
that includes abortion so long as such coverage is paid 
for entirely using only funds not authorized or appro-
priated by Federal law and such coverage shall not be pur-
chased using matching funds required for a federally sub-
sidized program, including a State’s or locality’s contribu-
tion of Medicaid matching funds. 
SEC. 505. CONSTRUCTION RELATING TO THE USE OF NON- 
FEDERAL FUNDS FOR HEALTH COVERAGE. 
Nothing in this title shall be construed as restricting 
the ability of any non-Federal health benefits coverage 
provider from offering abortion coverage, or the ability of 
a State or locality to contract separately with such a pro-
vider for such coverage, so long as only funds not author-
ized or appropriated by Federal law are used and such 
coverage shall not be purchased using matching funds re-
quired for a federally subsidized program, including a 
State’s or locality’s contribution of Medicaid matching 
funds. 
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