WORK Act
Bill: H.R.4544 | Sponsor: Rep. Wenstrup, Brad R. (R-OH)
Policy area: Social Welfare

Summary:
Workforce Opportunity Realignment Kickstart Act or the WORK Act
This bill modifies requirements for states with respect to the administration of Temporary Assistance for Needy Families (TANF) funds.
Specifically, the bill (1) establishes new performance indicators related to employment and educational outcomes for states receiving TANF funds; (2) increases the percentage of TANF funds, from 30% to 50%, that may be used to support other state programs; and (3) allows states to use TANF funds to carry out certain workforce development programs. Under current law, states may use TANF funds to support other state programs only if they are related to Child Care and Development Block Grants or Social Services Block Grants.
States must negotiate with the Department of Health and Human Services (HHS) to establish a level of performance for each indicator, taking into account certain economic, demographic, and other factors. HHS must periodically revise levels of performance for states to reflect economic and other conditions.

To amend part A of title IV of the Social Security Act, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Workforce Opportunity Realignment 
Kickstart Act'' or the ``WORK Act''.

SEC. 2. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES.

    Section 407(a) of the Social Security Act (42 U.S.C. 607(a)) is 
amended to read as follows:
    ``(a) Performance Accountability and Work Outcomes.--
            ``(1) Purpose.--The purpose of this subsection is to 
        provide for the establishment of performance accountability 
        measures to assess the effectiveness of States in increasing 
        employment, retention, and advancement among families receiving 
        assistance under the State program funded under this part.
            ``(2) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve the requisite level 
        of performance on an indicator described in paragraph (3)(B) of 
        this subsection for the fiscal year.
            ``(3) Measuring state performance.--
                    ``(A) In general.--Each State, in consultation with 
                the Secretary, shall collect and submit to the 
                Secretary the information necessary to measure the 
                level of performance of the State for each indicator 
                described in subparagraph (B), for fiscal year 2023 and 
                each fiscal year thereafter, and the Secretary shall 
                use the information collected for fiscal year 2023 to 
                establish the baseline level of performance for each 
                State for each such indicator.
                    ``(B) Indicators of performance.--The indicators 
                described in this subparagraph, for a fiscal year, are 
                the following:
                            ``(i) The percentage of individuals who 
                        were work-eligible individuals as of the time 
                        of exit from the program, who are in 
                        unsubsidized employment during the 2nd quarter 
                        after the exit.
                            ``(ii) The percentage of individuals who 
                        were work-eligible individuals who were in 
                        unsubsidized employment in the 2nd quarter 
                        after the exit, who are also in unsubsidized 
                        employment during the 4th quarter after the 
                        exit.
                            ``(iii) The median earnings of individuals 
                        who were work-eligible individuals as of the 
                        time of exit from the program, who are in 
                        unsubsidized employment during the 2nd quarter 
                        after the exit.
                            ``(iv) The percentage of individuals who 
                        have not attained 24 years of age, are 
                        attending high school or enrolled in an 
                        equivalency program, and are work-eligible 
                        individuals or were work-eligible individuals 
                        as of the time of exit from the program, who 
                        obtain a high school degree or its recognized 
                        equivalent while receiving assistance under the 
                        State program funded under this part or within 
                        1 year after the exit.
                    ``(C) Levels of performance.--
                            ``(i) Agreement on requisite performance 
                        level for each indicator.--
                                    ``(I) In general.--For each State 
                                submitting a State plan pursuant to 
                                section 402(a), the Secretary and the 
                                State shall negotiate the requisite 
                                level of performance for the State with 
                                respect to each indicator described in 
                                subparagraph (B), beginning with fiscal 
                                year 2024, and shall do so before the 
                                beginning of the fiscal year involved.
                                    ``(II) Requirements in establishing 
                                performance levels.--In establishing 
                                the requisite levels of performance, 
                                the State and the Secretary shall--
                                            ``(aa) take into account 
                                        how the levels involved compare 
                                        with the levels established for 
                                        other States; and
                                            ``(bb) ensure the levels 
                                        involved are adjusted, using 
                                        the objective statistical model 
                                        referred to in clause (iii), 
                                        based on--

                                                    ``(AA) the 
                                                differences among 
                                                States in economic 
                                                conditions, including 
                                                differences in 
                                                unemployment rates or 
                                                employment losses or 
                                                gains in particular 
                                                industries; and

                                                    ``(BB) the 
                                                characteristics of 
                                                participants on entry 
                                                into the program, 
                                                including indicators of 
                                                prior work history, 
                                                lack of educational or 
                                                occupational skills 
                                                attainment, or other 
                                                factors that may affect 
                                                employment and 
                                                earnings; and

                                                    ``(CC) take into 
                                                account the extent to 
                                                which the levels 
                                                involved promote 
                                                continuous improvement 
                                                in performance by each 
                                                State.

                            ``(ii) Revisions based on economic 
                        conditions and individuals receiving assistance 
                        during the fiscal year.--The Secretary shall, 
                        in accordance with the objective statistical 
                        model referred to in clause (iii), revise the 
                        requisite levels of performance for a State and 
                        a fiscal year to reflect the economic 
                        conditions and characteristics of the relevant 
                        individuals in the State during the fiscal 
                        year.
                            ``(iii) Statistical adjustment model.--The 
                        Secretary shall use an objective statistical 
                        model to make adjustments to the requisite 
                        levels of performance for the economic 
                        conditions and characteristics of the relevant 
                        individuals, and shall consult with the 
                        Secretary of Labor to develop a model that is 
                        the same as or similar to the model described 
                        in section 116(b)(3)(A)(viii) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3141(b)(3)(A)(viii)).
                            ``(iv) Definition of exit.--In this 
                        subsection, the term `exit' means, with respect 
                        to a State program funded under this part, 
                        ceases to a receive a benefit under the 
                        program.
                    ``(D) State option to establish common exit 
                measures.--Notwithstanding subparagraph (C)(iv) of this 
                paragraph, a State that has not provided the 
                notification under section 121(b)(1)(C)(ii) of the 
                Workforce Innovation and Opportunity Act to exclude the 
                State program funded under this part as a mandatory 
                one-stop partner may adopt an alternative definition of 
                `exit' for the purpose of creating common exit measures 
                to improve alignment with workforce programs operated 
                under title I of such Act.
                    ``(E) Regulations.--In order to ensure nationwide 
                comparability of data, the Secretary, after 
                consultation the Secretary of Labor and with States, 
                shall issue regulations governing the establishment of 
                the performance accountability system under this 
                subsection and a template for performance reports to be 
                used by all States consistent with subsection (b).''.

SEC. 3. EXPANSION OF AUTHORITY TO TRANSFER FUNDS TO OTHER PROGRAMS.

    Section 404(d) of the Social Security Act (42 U.S.C. 604(d)) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``30'' and inserting ``50''; and
                    (B) by adding at the end the following:
                    ``(C) Title I of the Workforce Innovation and 
                Opportunity Act.'';
            (2) in paragraph (3), by adding at the end the following:
                    ``(C) Funds transferred to the wioa.--In the case 
                of funds transferred under paragraph (1)(C) of this 
                subsection--
                            ``(i) all of the funds will be used to 
                        support families eligible for assistance under 
                        the State program funded under this part; and
                            ``(ii) not more than 15 percent of the 
                        funds will be reserved for statewide workforce 
                        investment activities referred to in section 
                        128(a)(1) of the Workforce Innovation and 
                        Opportunity Act.''; and
            (3) by adding at the end the following:
            ``(4) Exclusion of states excluding the state jobs program 
        as a mandatory one-stop partner under the wioa.--The authority 
        provided by this subsection may not be exercised by a State 
        that has provided the notification referred to in section 
        407(a)(3)(D).''.

SEC. 4. MODIFICATIONS TO STATE PLANS.

    Section 402 of the Social Security Act (42 U.S.C. 602) is amended--
            (1) in subsection (a)(1)(A), by adding at the end the 
        following:
                            ``(ix) Describe coordination with other 
                        programs, including whether the State intends 
                        to exercise authority provided by section 
                        404(d) of this Act to transfer any funds paid 
                        to the State under this part, provide assurance 
                        that, in the case of a transfer to carry out a 
                        program under title I of the Workforce 
                        Innovation and Opportunity Act, the State will 
                        comply with section 404(d)(3)(C) of this Act 
                        and coordinate with the one-stop delivery 
                        system under the Workforce Innovation and 
                        Opportunity Act, and describe how the State 
                        will coordinate with the programs involved to 
                        provide services to families receiving 
                        assistance under the program referred to in 
                        clause (i) of this subparagraph.''; and
            (2) by adding at the end the following:
    ``(d) 2-Year Plan.--A plan submitted pursuant to this section shall 
be designed to be implemented during a 2-year period.
    ``(e) Combined Plan Allowed.--A State may submit to the Secretary 
and the Secretary of Labor a combined State plan that meets the 
requirements of subsections (a) and (d) and that is for programs and 
activities under the Workforce Innovation and Opportunity Act.''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on October 1, 
2022.
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