TO PROVIDE TANF BENEFITS AND SERVICES.—Section 
404(e) (42 U.S.C. 604(e)) is amended to read as follows: 
‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE CER-
TAIN AMOUNTS FOR BENEFITS OR SERVICES OR FOR FU-
TURE CONTINGENCIES.—
‘‘(1) CARRYOVER.—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 limita-
tion, any benefit or service that may be provided 
under the State or tribal program funded under this 
part. 
‘‘(2) CONTINGENCY RESERVE.—A State or tribe 
may designate any portion of a grant made to the 
State or tribe under this part as a contingency re-
serve for future needs, and may use any amount so 
designated to provide, without fiscal year limitation, 
any benefit or service that may be provided under 
the State or tribal program funded under this part. 
If a State or tribe so designates a portion of such 
a grant, the State shall, on an annual basis, include 
in its report under section 411(a) the amount so 
designated.’’.
SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE 
PROGRAMS. 
(a) REPEAL.—Section 406 (42 U.S.C. 606) is re-
pealed. 
(b) CONFORMING AMENDMENTS.—
(1) Section 409(a) (42 U.S.C. 609(a)) is 
amended 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), re-
spectively. 
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) 
is amended by striking ‘‘406,’’. 
SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SELF-
SUFFICIENCY PLAN REQUIREMENTS. 
(a) MODIFICATION
OF
STATE
PLAN
REQUIRE-
MENTS.—Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) 
is amended by striking clauses (ii) and (iii) and inserting 
the following: 
‘‘(ii) Require a parent or caretaker re-
ceiving assistance under the program to 
engage in work or alternative self-suffi-
ciency activities (as defined by the State), 
consistent with section 407(e)(2). 
‘‘(iii) Require families receiving assist-
ance under the program to engage in ac-
tivities in accordance with family self-suffi-
ciency plans developed pursuant to section 
408(b).’’. 
(b) ESTABLISHMENT OF FAMILY SELF-SUFFICIENCY 
PLANS.—
(1) IN GENERAL.—Section 408(b) (42 U.S.C. 
608(b)) is amended to read as follows: 
‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.—
‘‘(1) IN GENERAL.—A State to which a grant 
is made under section 403 shall—
‘‘(A) assess, in the manner deemed appro-
priate by the State, the skills, prior work expe-
rience, and employability of each work-eligible 
individual (as defined in section 407(b)(2)(C)) 
receiving assistance under the State program 
funded under this part; 
‘‘(B) establish for each family that in-
cludes such an individual, in consultation as the 
State deems appropriate with the individual, a 
self-sufficiency plan that specifies appropriate 
activities described in the State plan submitted 
pursuant to section 402, including direct work 
activities as appropriate designed to assist the 
family in achieving their maximum degree of 
self-sufficiency, and that provides for the ongo-
125
time, in such manner, and containing such informa-
tion as the Secretary shall by regulation require, in-
cluding—
‘‘(A) an assurance that the State will com-
ply with the requirements of this section; 
‘‘(B) a State plan that meets the require-
ments of paragraph (2); and 
‘‘(C) an assurance that the State will com-
ply with the requirements of the State plan 
under paragraph (2). 
‘‘(2) REQUIREMENTS OF PLAN.—
‘‘(A) LEAD AGENCY.—The State plan shall 
identify the lead agency. 
‘‘(B) USE OF BLOCK GRANT FUNDS.—The 
State plan shall provide that the State shall use 
the amounts provided to the State for each fis-
cal year under this section—
‘‘(i) to provide food assistance to 
needy individuals and families residing in 
the State, other than residents of institu-
tions who are ineligible for food stamps 
under section 3(i); 
‘‘(ii) to administer an employment 
and training program under subsection (g) 
for needy individuals under the program