Helping Americans Succeed by Measuring Outcomes Act
Bill: H.R.4535 | Sponsor: Rep. Reed, Tom (R-NY)
Policy area: Social Welfare

Summary:
Helping Americans Succeed by Measuring Outcomes Act
This bill establishes certain performance measures for states receiving Temporary Assistance for Needy Families (TANF) program grants. It also requires states to specify how they will allow for transitional periods of benefits for recipients who become ineligible for TANF benefits due to employment or an increase in wages.

To amend title IV-A 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 ``Helping Americans Succeed by 
Measuring Outcomes Act''.

SEC. 2. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES.

    (a) In General.--Section 407 of the Social Security Act (42 U.S.C. 
607), as amended by subsection (c) of this section, is amended by 
inserting before subsection (b) the following:
    ``(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 or 
        any other State program funded with qualified State 
        expenditures.
            ``(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 as of the time 
                        of exit from the program, who are in 
                        unsubsidized employment during the 2nd and 4th 
                        quarters 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) In general.--For each State 
                        submitting a State plan pursuant to section 
                        402(a), there shall be established, in 
                        accordance with this subparagraph, levels of 
                        performance for each of the indicators 
                        described in subparagraph (B) of this 
                        paragraph.
                            ``(ii) Weight.--The weight assigned to such 
                        an indicator shall be the following:
                                    ``(I) 40 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(i).
                                    ``(II) 25 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(ii)(II).
                                    ``(III) 25 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(iii).
                                    ``(IV) 10 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(iv).
                            ``(iii) Agreement on requisite performance 
                        level for each indicator.--
                                    ``(I) In general.--The Secretary 
                                and the State shall jointly establish 
                                the requisite level of performance for 
                                the State with respect to each 
                                indicator described in clause (ii) 
                                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 levels involved compare 
                                        with the levels established for 
                                        other States;
                                            ``(bb) ensure the levels 
                                        involved are adjusted, using 
                                        the objective statistical model 
                                        referred to in clause (v), 
                                        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.
                            ``(iv) 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 (v), 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.
                            ``(v) 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)).
                            ``(vi) Definition of exit.--In this 
                        subsection, the term `exit' means, with respect 
                        to a State program funded under this part, 
                        ceases to receive assistance under the program.
                    ``(D) Regulations.--In order to ensure nationwide 
                comparability of data, the Secretary, after 
                consultation with 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.''.

SEC. 3. TRANSITIONAL PHASE-OUT OF BENEFITS FOR FAMILIES TO SUPPORT 
              SUCCESS IN WORK.

    Section 402(a)(1)(B) of the Social Security Act (42 U.S.C. 
602(a)(1)(B)) is amended by adding at the end the following:
                            ``(vi) The document shall include a 
                        description of how the State allows for a 
                        transitional period of benefits, such as 
                        through temporary earned income disregards or a 
                        gradual reduction in the monthly benefit 
                        amount, for an individual receiving assistance 
                        who obtains employment and becomes ineligible 
                        due to an increase in income obtained through 
                        the employment or through an increase in 
                        wages.''.

SEC. 4. EFFECTIVE DATE.

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