To restore the TANF Emergency Contingency Fund to further support our Nation's jobless workers.

SECTION 1. RESTORATION OF TANF EMERGENCY CONTINGENCY FUND.

    (a) In General.--Section 403 of the Social Security Act (42 U.S.C. 
603) is amended by adding at the end the following:
    ``(c) Emergency Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund which shall be known as the 
        `Emergency Contingency Fund for State Temporary Assistance for 
        Needy Families Programs' (in this subsection referred to as the 
        `Emergency Fund').
            ``(2) Deposits into fund.--
                    ``(A) In general.--Out of any money in the Treasury 
                of the United States not otherwise appropriated, there 
                are appropriated for fiscal year 2012, $10,000,000,000 
                for payment to the Emergency Fund.
                    ``(B) Availability and use of funds.--The amounts 
                appropriated to the Emergency Fund under subparagraph 
                (A) shall remain available through fiscal year 2013 and 
                shall be used to make grants to States in each of 
                fiscal years 2012 and 2013 in accordance with the 
                requirements of paragraph (3).
                    ``(C) Limitation.--In no case may the Secretary 
                make a grant from the Emergency Fund for a fiscal year 
                after fiscal year 2013.
            ``(3) Grants.--
                    ``(A) Grant related to caseload increases.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2012 or 2013, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Caseload increase requirement.--A 
                        State meets the requirement of this clause for 
                        a quarter if the average monthly assistance 
                        caseload of the State for the quarter exceeds 
                        the average monthly assistance caseload of the 
                        State for the corresponding quarter in the 
                        emergency fund base year of the State.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter shall be an amount equal to 80 percent 
                        of the amount (if any) by which the total 
                        expenditures of the State for basic assistance 
                        (as defined by the Secretary) in the quarter, 
                        whether under the State program funded under 
                        this part or as qualified State expenditures, 
                        exceeds the total expenditures of the State for 
                        such assistance for the corresponding quarter 
                        in the emergency fund base year of the State.
                    ``(B) Grant related to increased expenditures for 
                non-recurrent short term benefits.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2012 or 2013, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Non-recurrent short term expenditure 
                        requirement.--A State meets the requirement of 
                        this clause for a quarter if the total 
                        expenditures of the State for non-recurrent 
                        short term benefits in the quarter, whether 
                        under the State program funded under this part 
                        or as qualified State expenditures, exceeds the 
                        total expenditures of the State for non-
                        recurrent short term benefits in the 
                        corresponding quarter in the emergency fund 
                        base year of the State.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter shall be an amount equal to 80 percent 
                        of the excess described in clause (ii).
                    ``(C) Grant related to increased expenditures for 
                subsidized employment.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2012 or 2013, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Subsidized employment expenditure 
                        requirement.--A State meets the requirement of 
                        this clause for a quarter if the total 
                        expenditures of the State for subsidized 
                        employment in the quarter, whether under the 
                        State program funded under this part or as 
                        qualified State expenditures, exceeds the total 
                        such expenditures of the State in the 
                        corresponding quarter in the emergency fund 
                        base year of the State.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter shall be an amount equal to 80 percent 
                        of the excess described in clause (ii).
            ``(4) Authority to make necessary adjustments to data and 
        collect needed data.--In determining the size of the caseload 
        of a State and the expenditures of a State for basic 
        assistance, non-recurrent short term benefits, and subsidized 
        employment, during any period for which the State requests 
        funds under this subsection, and during the emergency fund base 
        year of the State, the Secretary may make appropriate 
        adjustments to the data, on a State-by-State basis, to ensure 
        that the data are comparable with respect to the groups of 
        families served and the types of aid provided. The Secretary 
        may develop a mechanism for collecting expenditure data, 
        including procedures which allow States to make reasonable 
        estimates, and may set deadlines for making revisions to the 
        data.
            ``(5) Limitation.--The total amount payable to a single 
        State under subsection (b) and this subsection for fiscal years 
        2012 and 2013 combined shall not exceed 50 percent of the 
        annual State family assistance grant.
            ``(6) Limitations on use of funds.--A State to which an 
        amount is paid under this subsection may use the amount only as 
        authorized by section 404.
            ``(7) Timing of implementation.--The Secretary shall 
        implement this subsection as quickly as reasonably possible, 
        pursuant to appropriate guidance to States.
            ``(8) Application to indian tribes.--This subsection shall 
        apply to an Indian tribe with an approved tribal family 
        assistance plan under section 412 in the same manner as this 
        subsection applies to a State.
            ``(9) Definitions.--In this subsection:
                    ``(A) Average monthly assistance caseload 
                defined.--The term `average monthly assistance 
                caseload' means, with respect to a State and a quarter, 
                the number of families receiving assistance during the 
                quarter under the State program funded under this part 
                or as qualified State expenditures, subject to 
                adjustment under paragraph (4).
                    ``(B) Emergency fund base year.--
                            ``(i) In general.--The term `emergency fund 
                        base year' means, with respect to a State and a 
                        category described in clause (ii), whichever of 
                        fiscal year 2009 or 2010 is the fiscal year in 
                        which the amount described by the category with 
                        respect to the State is the lesser.
                            ``(ii) Categories described.--The 
                        categories described in this clause are the 
                        following:
                                    ``(I) The average monthly 
                                assistance caseload of the State.
                                    ``(II) The total expenditures of 
                                the State for non-recurrent short term 
                                benefits, whether under the State 
                                program funded under this part or as 
                                qualified State expenditures.
                                    ``(III) The total expenditures of 
                                the State for subsidized employment, 
                                whether under the State program funded 
                                under this part or as qualified State 
                                expenditures.
                    ``(C) Qualified state expenditures.--The term 
                `qualified State expenditures' has the meaning given 
                the term in section 409(a)(7).''.
    (b) Modification of Caseload Reduction Credit.--Section 
407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by 
inserting ``(or if the immediately preceding fiscal year is fiscal year 
2011 or 2012, then, at State option, during the emergency fund base 
year of the State with respect to the average monthly assistance 
caseload of the State (within the meaning of section 403(c)(9)), except 
that, if a State elects such option for fiscal year 2011, the emergency 
fund base year of the State with respect to such caseload shall be 
fiscal year 2009))'' before ``under the State''.
    (c) Disregard From Limitation on Total Payments to Territories.--
Section 1108(a)(2) of such Act (42 U.S.C. 1308(a)(2)) is amended by 
inserting ``403(c)(3),'' after ``403(a)(5),''.

Summary: Amends title IV (Temporary Assistance for Needy Families) (TANF) of the Social Security Act to reestablish for FY2012-FY2013 the Emergency Contingency Fund for State Temporary Assistance for Needy Families Programs for the purpose of grants to states by the Secretary of the Treasury related to: (1) increases in TANF caseloads, (2) increased expenditures for non-recurrent short term benefits, and (3) increased expenditures for subsidized employment. Modifies for FY2011-FY2012 the formula for the pro rata reduction credit in the calculation of the minimum participation rate of all families of a state receiving TANF assistance for any reduction in such rate owing to caseload reductions not required by federal law and not resulting from changes in state eligibility criteria.