Jobs for Economic Recovery Act of 2021
Bill: S.784 | Sponsor: Sen. Wyden, Ron (D-OR)
Policy area: Labor and Employment

Summary:
Jobs for Economic Recovery Act of 2021
This bill establishes an employment and training program to assist workers who are unemployed or underemployed due to the COVID-19 pandemic, and other displaced workers and those who face barriers to employment, to obtain employment, including through subsidized employment programs.
Specifically, states, Indian tribes, local governments, and particular nonprofits must meet certain conditions before receiving funding to establish these programs.
In addition to providing this funding, the bill requires the Department of Health and Human Services (HHS) to award temporary grants to these entities to plan and implement the programs.
The HHS Inspector General must biennially audit a sample of the state programs to ensure compliance with program and nondisplacement requirements, and to identify and protect against any waste, fraud, or abuse in such programs.
HHS must make information publicly available to job seekers online about whether they are eligible for state, local, or tribal program employment services, and the agency to contact for further information.
The bill also creates an employee retention work opportunity tax credit for employers that retain workers hired through the program for 24 months.
Finally, the bill requires the Government Accountability Office to evaluate whether the retention credit (1) had a meaningful impact on retention as compared to currently existing and previous subsidized employment programs, and (2) was easily understood by employers and had an impact on hiring decisions in addition to any subsidy received by this bill.

To amend the Social Security Act to establish a new employment, 
     training, and supportive services program for unemployed and 
   underemployed individuals, including individuals with barriers to 
employment and those who are unemployed or underemployed as a result of 
                   COVID-19, 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; AMENDMENT TO SOCIAL SECURITY ACT; TABLE OF 
              CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Jobs for Economic 
Recovery Act of 2021''.
    (b) Amendments to Social Security Act.--Except as otherwise 
specifically provided, whenever in this Act an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendment to Social Security Act; table of 
                            contents.
Sec. 2. Purpose.
Sec. 3. Employment, training, and supportive services program.
Sec. 4. Employee retention work opportunity credit.
Sec. 5. Conforming amendments.
Sec. 6. Effective date; regulations.

SEC. 2. PURPOSE.

    The purposes of this Act are the following:
            (1) To provide immediate funding for subsidized employment 
        programs that will create job opportunities for individuals who 
        are not employed or who are underemployed, including 
        individuals who are not employed or who are underemployed as a 
        result of COVID-19, when it is safe to provide such 
        opportunities, taking into account the need to prevent the 
        spread or recurrence of COVID-19.
            (2) To expand subsidized employment programs that reconnect 
        unemployed and underemployed workers to the workforce.
            (3) To drive economic recovery by allowing for sufficient 
        State and local flexibility to create or expand programs that 
        place workers in jobs that fill community-specific workforce 
        gaps and meet employer needs.
            (4) To prevent long-term joblessness and structural 
        unemployment and provide work opportunities for individuals 
        with barriers to employment.

SEC. 3. EMPLOYMENT, TRAINING, AND SUPPORTIVE SERVICES PROGRAM.

    (a) Establishment.--The Social Security Act (42 U.S.C. 301 et seq.) 
is amended by inserting after title XII the following:

    ``TITLE XIII--REEMPLOYMENT AND OTHER JOB-RELATED ASSISTANCE AND 
                                BENEFITS

``SEC. 1301. PURPOSE; DEFINITIONS; ADMINISTRATION.

    ``(a) Purpose.--The purpose of this title is to provide funds to 
States, Indian tribes, local governments, and nonprofit organizations 
to initiate and expand the provision of employment services, training 
and other services and activities, and supportive services for eligible 
individuals in order to--
            ``(1) promote subsidized employment programs for public, 
        private for-profit, private nonprofit, and employment social 
        enterprise sector jobs that enable unemployed or underemployed 
        individuals to earn income and connect to the workforce;
            ``(2) expand the availability of jobs during economic 
        downturns or in areas with high unemployment or poverty;
            ``(3) provide economically and socially disadvantaged 
        individuals and individuals with barriers to employment (such 
        as the long-term unemployed, individuals with criminal records, 
        former foster youth, and other economically and socially 
        disadvantaged populations) with wages and the ability to gain 
        job experience;
            ``(4) provide employers with new pathways into the 
        workforce development system enabling them to have a greater 
        role in the training and hiring of new workers and labor market 
        re-entrants and facilitating their transition from subsidized 
        job placements to unsubsidized employment; and
            ``(5) allow for sufficient flexibility for States, Indian 
        tribes, local governments, and nonprofit organizations to 
        design programs targeted at community-specific workforce gaps 
        and employer needs.
    ``(b) Definitions.--In this title:
            ``(1) Adult and dislocated worker employment and training 
        activities.--The term `adult and dislocated worker employment 
        and training activities' means adult and dislocated worker 
        employment and training activities funded under chapter 3 of 
        subtitle B of title I of the Workforce Innovation and 
        Opportunity Act.
            ``(2) Dislocated worker.--The term `dislocated worker' has 
        the meaning given that term in section 3 of the Workforce 
        Innovation and Opportunity Act.
            ``(3) Eligible individual.--The term `eligible individual' 
        means an individual who, on the basis of an assessment by the 
        State, has been determined to be unlikely to find unsubsidized 
        employment due to--
                    ``(A) being an individual with a barrier to 
                employment;
                    ``(B) being a dislocated worker; or
                    ``(C) a period of economic downturn or adverse 
                local or national economic conditions.
            ``(4) Employment services.--The term `employment services' 
        means a subsidized job placement (including a transitional job 
        described in section 134(d)(5) of the Workforce Innovation and 
        Opportunity Act) in the public, private for-profit, private 
        nonprofit, or employment social enterprise sector and includes 
        payment or reimbursement of employer subsidies for expenses 
        such as wages, the employer share of payroll taxes, employer 
        costs for unemployment insurance, employer costs for workers' 
        compensation premiums, and costs attributable to supervision 
        and other administration directly related to the employment of 
        an eligible individual in the subsidized job placement.
            ``(5) Indian tribe.--The term `Indian tribe' has the 
        meaning given that term in section 419(4).
            ``(6) Individual with a barrier to employment.--The term 
        `individual with a barrier to employment' has the meaning given 
        that term in section 3 of the Workforce Innovation and 
        Opportunity Act and includes an individual who is an offender 
        (as defined in such section).
            ``(7) Integrated education and training.--The term 
        `integrated education and training' has the meaning given that 
        term in section 3 of the Workforce Innovation and Opportunity 
        Act.
            ``(8) Payroll taxes.--The term `payroll taxes' means taxes 
        under section 3111, 3221, 3301, or 3321 of the Internal Revenue 
        Code of 1986, and any similar State or local tax imposed on 
        employers.
            ``(9) Period of economic downturn.--The term `period of 
        economic downturn' means, with respect to a State, a period in 
        which, for each month of such period--
                    ``(A) the average rate of total unemployment in the 
                United States (seasonally adjusted) for the most recent 
                3 months for which data is available is at least 5.5 
                percent; or
                    ``(B) the average rate of total unemployment in 
                such State (seasonally adjusted) for the most recent 3 
                months for which data for all States is available is at 
                least 5.5 percent.
            ``(10) Supportive services.--
                    ``(A) In general.--The term `supportive services' 
                has the meaning given that term in section 3 of the 
                Workforce Innovation and Opportunity Act.
                    ``(B) Additional services.--Such term includes any 
                of the following:
                            ``(i) Stipends for an eligible individual 
                        provided with unpaid training services.
                            ``(ii) Legal services.
                            ``(iii) Other supplemental services 
                        necessary for an eligible individual to 
                        participate in the State program funded under 
                        this title.
            ``(11) State expenditures.--The term `State expenditures' 
        means all State, local, or tribal funds that are expended by 
        the State or a local or tribal agency including State, local, 
        or tribal funds that are matched or reimbursed by the Federal 
        Government and State, local, or tribal funds that are not 
        matched or reimbursed by the Federal Government.
            ``(12) Training and other services or activities.--The term 
        `training and other services or activities' means any of the 
        following services or activities if provided in conjunction 
        with, including in preparation for, a subsidized job placement 
        and determined by the State as necessary to significantly 
        increase the likelihood that the job placement will be 
        successful for the employer and employee and may improve the 
        prospect of obtaining and retaining unsubsidized jobs:
                    ``(A) Services provided through adult and 
                dislocated worker employment and training activities.
                    ``(B) Integrated education and training.
                    ``(C) Education directly related to employment.
                    ``(D) Vocational and employment services integrated 
                with trauma-informed substance use disorder treatment, 
                in collaboration with a substance use disorder 
                treatment provider.
                    ``(E) Casework and job coaching.
                    ``(F) Union-provided employment services, including 
                labor-management training.
    ``(c) Administration.--
            ``(1) In general.--Subject to section 1302(d), the program 
        under this title shall be administered by the Secretary through 
        the Assistant Secretary for the Administration for Children and 
        Families within the Department of Health and Human Services and 
        in consultation with the Secretary of Labor as appropriate.
            ``(2) Funding for administration.--Out of any money in the 
        Treasury not otherwise appropriated, for each fiscal year 
        beginning with fiscal year 2022, there are appropriated to the 
        Secretary $15,000,000 to administer this title. Amounts 
        appropriated under the preceding sentence shall remain 
        available until expended.
    ``(d) Appropriated Entitlement.--
            ``(1) In general.--This title establishes an entitlement to 
        payments under this title for States, Indian tribes and tribal 
        consortiums, and local governments with plans approved under 
        this title.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to make payments 
        to States, Indian tribes and tribal consortiums, and local 
        governments under sections 1304, 1307, and 1308 for each fiscal 
        year beginning with fiscal year 2021, such sums as are 
        necessary.

``SEC. 1302. STATE PLAN REQUIREMENTS.

    ``(a) In General.--A State is not eligible for payment under 
section 1304 unless the State has submitted to the Secretary a plan 
that describes--
            ``(1) the State's strategy for creating or expanding 
        programs that offer subsidized employment for eligible 
        individuals and moving such individuals into unsubsidized 
        employment;
            ``(2) how such strategy fits with the State's overall 
        strategy for, and assessment of, the State's workforce needs;
            ``(3) the employment services, training and other services 
        or activities, and supportive services to be provided under the 
        State program funded under this title;
            ``(4) which specific populations of eligible individuals 
        the State will serve, with a focus on how the State plans to 
        assess and serve the eligible individuals with serious or 
        multiple barriers to employment;
            ``(5) the strategies the State will use for outreach and 
        engagement with the populations specified under paragraph (4) 
        to ensure that such populations are aware of subsidized 
        employment opportunities in their community;
            ``(6) the strategies the State will use to ensure that its 
        programs do not systematically exclude the eligible individuals 
        with the greatest barriers to employment;
            ``(7) the strategies the State will use for outreach, 
        engagement, and ongoing collaboration with employers to promote 
        employers' use of the program and ensure employers have the 
        training necessary to support eligible individuals;
            ``(8) the strategies the State will use to create 
        employment plans for eligible individuals participating in the 
        State program funded under this title and, based on such plans, 
        provide eligible individuals with employment services, training 
        and other services and activities, and supportive services;
            ``(9) how the State will coordinate the State program 
        funded under this title with other relevant systems and 
        programs based on the populations identified which may include 
        criminal justice, child support, juvenile justice, child 
        welfare, homeless services, unemployment insurance, and other 
        human services and workforce development programs of the State, 
        including programs supported through the Workforce Innovation 
        and Opportunity Act;
            ``(10) how the State will ensure compliance with the 
        requirements of section 1305;
            ``(11) a strong logic model for the State's proposed 
        strategy to provide employment services, training, or other 
        services and activities and any existing research or evidence 
        supporting the effectiveness of such strategy;
            ``(12) how the State will address gaps in employment and 
        earnings by race, ethnicity, age, and gender and collect data 
        to measure progress in addressing those gaps;
            ``(13) how the State will incorporate feedback from 
        eligible individuals participating in the State program to 
        improve the program over time;
            ``(14) how the State will make use of planning and 
        implementation grants under section 1304(f); and
            ``(15) such information about other aspects of the plan as 
        the Secretary may request.
    ``(b) Other Requirements.--
            ``(1) Certification.--The State shall include with the plan 
        a certification that supportive services for eligible 
        individuals will supplement, and not supplant, other assistance 
        provided by the State.
            ``(2) Research or evaluation efforts.--The State shall 
        agree to participate in any research or evaluation efforts 
        conducted by the Secretary under section 1306(e), which may 
        include randomized control trials.
    ``(c) Deadlines for Submission.--
            ``(1) Initial plan.--The initial State plan under this 
        section shall be submitted by the State agency or agencies 
        responsible for administering the State program under this 
        title to the Secretary not later than 90 days prior to the 
        commencement of the State program funded under this title and 
        shall be for the period beginning on the first day of the 
        commencement of the State program funded under the title and 
        ending on the day that is the last day of the period covered by 
        the unified State plan, the combined State plan submitted by 
        the State under section 102 or 103 of the Workforce Innovation 
        and Opportunity Act, or a tribal plan submitted under section 
        166 of such Act that is in effect as of the date of submission.
            ``(2) Subsequent plans.--
                    ``(A) In general.--Subject to subparagraph (B), 
                each State plan submitted under this section after the 
                initial State plan shall be submitted at the same time 
                and apply for the same period, as a unified State plan, 
                a combined State plan submitted by the State under 
                section 102 or 103 of the Workforce Innovation and 
                Opportunity Act, or a tribal plan submitted under 
                section 166 of such Act.
                    ``(B) Amendments to plans.--The Secretary shall 
                establish procedures to allow States to amend a State 
                plan submitted under this section prior to the 
                expiration of the period described in subparagraph (A).
            ``(3) Approval.--Each State plan submitted under this 
        section by the State agency or agencies responsible for 
        administering the State program under this title, and any 
        amendments to the plan, shall be subject to the approval of the 
        Secretary, in consultation with the Secretary of Labor as 
        appropriate.
    ``(d) State Agency.--At the option of the State, the program funded 
under this title shall be administered by the lead State agency 
responsible for administering the State program funded under part A of 
title IV, the lead State agencies responsible for administering the 
adult and dislocated worker employment and training activities of the 
State, or jointly by such agencies.

``SEC. 1303. USE OF FUNDS.

    ``(a) Authorized Uses.--
            ``(1) In general.--Subject to paragraph (2), a State shall 
        use funds paid under section 1304 to provide eligible 
        individuals with--
                    ``(A) employment services;
                    ``(B) training and other services and activities; 
                and
                    ``(C) supportive services while eligible 
                individuals are provided with employment services and 
                training and other services and activities.
            ``(2) Spending requirement.--Not less than 70 percent of 
        the total amount paid to a State for a fiscal year quarter 
        shall be for expenditures attributable to employment services 
        that are payment for or reimbursement of employer costs such as 
        wages, the employer share of payroll taxes, employer costs for 
        unemployment insurance, employer costs for workers' 
        compensation premiums, or costs for employer-provided on-the-
        job training for subsidized job placements of eligible 
        individuals.
            ``(3) Training.--A State may use such funds for training 
        employers, agency personnel, and other individuals related to 
        the administration of the State program funded under this title 
        on issues related to providing eligible individuals with 
        employment services, training and other services and 
        activities, and supportive services.
            ``(4) Administrative costs.--Subject to section 1304(e), a 
        State may use such funds for the proper and efficient 
        administration of the State program funded under this title.
    ``(b) Evidence-Based Practices and Actual Job Placements 
Required.--State expenditures for employment services, training and 
other services and activities, and supportive services provided to 
eligible individuals shall be eligible for a Federal matching payment 
under section 1304 only if the State can demonstrate--
            ``(1) that the employment services, training and other 
        services and activities, and supportive services provided for 
        an eligible individual resulted in employment (subsidized or 
        unsubsidized) for the eligible individual; or
            ``(2) good cause for why the job placement or employment 
        did not occur, which may include the failure of an employer or 
        an eligible individual to carry out the employer's or 
        individual's commitments to the State program.

``SEC. 1304. PAYMENTS TO STATES.

    ``(a) Payments to States.--Subject to section 1303 and subsections 
(b) and (c) of this section, beginning with the first fiscal year 
quarter for which a State plan is approved under this title, and for 
each quarter thereafter, the Secretary shall pay each State, out of any 
money in the Treasury not otherwise appropriated, an amount equal to 
the Federal medical assistance percentage that applies for the fiscal 
year to the State under section 1905(b) (without regard to any 
adjustments to such percentage applicable under that section or any 
other provision of law) of the total amount expended by the State 
during the quarter to provide eligible individuals with employment 
services, training and other services and activities, and supportive 
services authorized under this title in accordance with an approved 
State plan and, subject to subsection (e), for the proper and efficient 
administration of the program funded under this title.
    ``(b) Increased Federal Support During Economic Downturns.--
            ``(1) Increased fmap.--
                    ``(A) In general.--Beginning with any fiscal year 
                quarter for which the total unemployment in a State 
                (seasonally adjusted) for the period consisting of the 
                most recent 3 months for which data for all States are 
                published equals or exceeds the applicable percentage 
                specified in paragraph (2), the Federal medical 
                assistance percentage applicable to payments made under 
                subsection (a) to the State for the quarter shall be 
                increased by the applicable number of percentage points 
                specified in paragraph (2), except that in no case 
                shall the Federal medical assistance percentage 
                applicable to payments under subsection (a) for a State 
                for a quarter exceed 100 percent.
                    ``(B) Duration.--
                            ``(i) In general.--Subject to clause (ii), 
                        an increase in the Federal medical assistance 
                        percentage made in accordance with this 
                        subsection shall remain in effect with respect 
                        to payments made to a State under subsection 
                        (a) for at least 4 consecutive fiscal year 
                        quarters.
                            ``(ii) Additional increase in 
                        unemployment.--If during the period for which 
                        the Federal medical assistance percentage for a 
                        State is increased under this subsection, the 
                        total unemployment in the State (seasonally 
                        adjusted) for the period consisting of the most 
                        recent 3 months for which data for all States 
                        are published exceeds the applicable total 
                        unemployment rate that was the basis for such 
                        increase, the increase in the Federal medical 
                        assistance percentage shall be the applicable 
                        number of percentage points specified in 
                        paragraph (2) that corresponds to the most 
                        recent percentage of total unemployment in the 
                        State, beginning with the first fiscal year 
                        quarter for which such percentage of total 
                        unemployment occurs and continuing for 3 
                        succeeding fiscal year quarters.
            ``(2) Applicable percentage; applicable number of 
        percentage points.--For purposes of paragraph (1), if the total 
        unemployment in a State (seasonally adjusted) for the period 
        consisting of the most recent 3 months for which data for all 
        States are published is--
                    ``(A) equal to or greater than 5.5 percent but less 
                than 6 percent, the applicable number of percentage 
                points is 20;
                    ``(B) equal to or greater than 6 percent but less 
                than 6.5 percent, the applicable number of percentage 
                points is 30;
                    ``(C) equal to or greater than 6.5 percent but less 
                than 7 percent, the applicable number of percentage 
                points is 40; and
                    ``(D) equal to or greater than 7 percent, the 
                applicable number of percentage points is 50.
    ``(c) Requirements for Payments.--
            ``(1) Maintenance of effort.--As a condition of receiving 
        payments under this section for a fiscal year, the total amount 
        of State expenditures for work, education, and training 
        activities and supportive services under the State program 
        funded under part A of title IV and for qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)) for such 
        fiscal year shall not be less than the total amount of such 
        State expenditures for fiscal year 2019.
            ``(2) Non-supplantation requirement.--Funds paid to a State 
        under this section shall be used to supplement, not supplant, 
        the total amount of State expenditures for employment services, 
        training and other services and activities, and supportive 
        services provided through the adult and dislocated worker 
        employment and training activities of the State for the fiscal 
        year.
    ``(d) Administration of Payments.--
            ``(1) In general.--Prior to the beginning of each fiscal 
        quarter, the Secretary shall estimate the amount to which a 
        State will be entitled under this section for such quarter, 
        based on--
                    ``(A) a report filed by the State containing its 
                estimate of the total sum to be expended in such 
                quarter to provide eligible individuals with employment 
                services, training and other services and activities, 
                and supportive services through the program funded 
                under this title; and
                    ``(B) such other investigation as the Secretary may 
                find necessary.
            ``(2) Payments.--The Secretary shall then pay to the State, 
        in such installments as the Secretary shall determine, the 
        amount so estimated, reduced or increased to the extent of any 
        overpayment or underpayment which the Secretary determines was 
        made under this section to such State for any prior quarter and 
        with respect to which adjustment has not already been made 
        under this subsection.
    ``(e) Limitation.--Beginning with the fifth fiscal year quarter for 
which a State plan is approved under this title, and for each quarter 
thereafter, a State shall not receive a payment under this section for 
amounts expended by the State during the quarter for the proper and 
efficient administration of the program funded under this title that 
exceed the amount equal to 15 percent of the amount expended by the 
State during the quarter to provide eligible individuals with 
employment services, training and other services and activities, and 
supportive services.
    ``(f) Planning and Implementation Grants; Technical Assistance.--
            ``(1) In general.--In addition to amounts available to make 
        payments to States under subsection (a), the Secretary shall 
        make grants to States, Indian tribes (or intertribal 
        consortiums with a tribal family assistance plan approved under 
        section 412), and local governments for costs attributable to 
        the planning and implementation of a State, tribal, or local 
        program approved under section 1302, 1307, or 1308 and funded 
        under this title and shall provide technical assistance to 
        States and Indian tribes with respect to the planning and 
        implementation of such a program.
            ``(2) Requirements.--
                    ``(A) Community engagement.--As a condition of 
                receiving a grant under this subsection, a State, 
                Indian tribe, or local government shall engage local 
                communities, including focus groups of target 
                populations of eligible individuals and employers, in 
                the planning and implementation of the State, tribal, 
                or local program approved under section 1302, 1307, or 
                1308 and funded under this title.
                    ``(B) 2-year limit.--No State, Indian tribe, or 
                local government shall receive a grant under this 
                subsection for more than 8 quarters.
                    ``(C) No matching payment required.--No matching 
                payment shall apply to the grants made under this 
                subsection.

``SEC. 1305. OTHER PROGRAM REQUIREMENTS.

    ``(a) Assessment and Employment Plan.--
            ``(1) In general.--The State shall establish procedures 
        to--
                    ``(A) assess, within 30 days of determining that an 
                individual is an eligible individual, the eligible 
                individual's job skills, education, past work 
                experience, and potential barriers to employment; and
                    ``(B) create, based on such assessment, an 
                individualized employment plan for each eligible 
                individual participating in the program that--
                            ``(i) specifies--
                                    ``(I) the initial plan for the 
                                eligible individual, including whether 
                                the eligible individual is to 
                                immediately begin working in a 
                                subsidized job or needs training and 
                                other services and activities, or 
                                supportive services before that 
                                placement can occur; and
                                    ``(II) the employment services that 
                                will be provided to the eligible 
                                individual, as well as the training and 
                                other services and activities, and 
                                supportive services that will be 
                                provided to the eligible individual 
                                while the eligible individual is 
                                working in a subsidized job; and
                            ``(ii) provides that, near the end of the 
                        individual's initial placement in a subsidized 
                        job, an assessment will be made regarding 
                        whether the eligible individual will be 
                        converted to a permanent, unsubsidized 
                        employee, and if not, the job search assistance 
                        and additional employment services, training 
                        and other services and activities, and 
                        supportive services that will be provided to 
                        the eligible individual with the goal of 
                        obtaining and retaining unsubsidized 
                        employment.
            ``(2) No discrimination against individuals with highest 
        barriers to employment.--The State shall prioritize job 
        placements for individuals with the highest barriers to 
        employment and ensure that the procedures established under 
        paragraph (1) do not result in an eligible individual being 
        less likely to receive employment services solely on the basis 
        of the individual's barriers to employment.
            ``(3) Nondiscrimination.--The State shall ensure that the 
        procedures established under paragraph (1) do not have the 
        effect of making any eligible individual less likely to receive 
        employment services on the basis of the individual's race, sex, 
        religious creed, national origin, or political affiliation.
    ``(b) Employment Standards and Criteria for Subsidized Jobs.--
            ``(1) General requirements.--Any subsidized job placement 
        for an eligible individual participating in the State program 
        funded under this title shall satisfy the following 
        requirements:
                    ``(A) Employment services that are payment for or 
                reimbursement of employer costs may only be used by an 
                employer in the public, private for-profit, private 
                nonprofit, or employment social enterprise sector for 
                costs that are attributable to the hiring of, 
                compensation for, or on-the-job training of, the 
                eligible individual.
                    ``(B) An employer in the public, private for-
                profit, private nonprofit, or employment social 
                enterprise sector shall not be paid a subsidy that 
                exceeds 120 percent of wage costs.
                    ``(C) An eligible individual in a subsidized job 
                placement shall be paid at a rate that is not less than 
                whichever of the following is highest:
                            ``(i) the minimum hourly wage rate 
                        applicable to the individual under the laws of 
                        the State or locality in which the individual 
                        is employed;
                            ``(ii) the wage rate applicable under 
                        section 6 of the Fair Labor Standards Act of 
                        1938 (29 U.S.C. 206);
                            ``(iii) if determined appropriate by the 
                        State program funded under this title, the 
                        prevailing wage rate in the locality in which 
                        the individual is employed as determined by the 
                        Secretary of Labor, based on area surveys of 
                        wage rates conducted by the Department of 
                        Labor; and
                            ``(iv) where a collective-bargaining 
                        agreement covers employees at the site of the 
                        subsidized job placement, a rate set for the 
                        eligible individual in accordance with the 
                        rates provided for in the agreement, including 
                        prospective wage increases provided for in the 
                        agreement.
                    ``(D) An eligible individual in a subsidized job 
                placement shall be covered by all relevant labor and 
                employment laws.
                    ``(E) Subject to paragraph (6), a subsidized job 
                placement for an eligible individual shall not exceed 6 
                months unless the placement is extended for not more 
                than 6 additional months for purposes of improving the 
                work experience, training and other services and 
                activities, and supportive services needs of an 
                eligible individual with less prior work experience, 
                more skill development and training needs, or greater 
                employment barriers.
                    ``(F) Employers participating in the State program 
                agree to make a good faith effort to hire an eligible 
                individual placed in a subsidized job in their 
                employment if the individual has demonstrated 
                satisfactory performance and the employer has a 
                relevant job opening available and to maintain a record 
                of the share of subsidized workers hired to 
                unsubsidized positions on a permanent basis.
                    ``(G) Employers shall ensure that the site of 
                employment is a location where an eligible individual 
                in a subsidized job placement who is an individual with 
                a disability, as defined in section 7 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 705), interacts 
                with other persons who are not such individuals with 
                disabilities (not including supervisory personnel or 
                individuals who are providing services to such worker) 
                to the same extent as individuals who are not such 
                individuals with disabilities and who are in comparable 
                positions interact with other persons.
                    ``(H) For a site of employment at which workers are 
                covered by a collective bargaining agreement, no 
                subsidized job placement shall be made at the site 
                without the consent of all labor organizations 
                representing workers at such site.
                    ``(I) In a case where the State is considering 
                placing an eligible individual with an employer who has 
                previously participated in the State program, the State 
                shall consider feedback from workers previously placed 
                with that employer when determining whether to continue 
                placing eligible individuals in subsidized jobs with 
                that employer.
                    ``(J) A subsidized job placement in a government 
                agency shall be subject to the same civil service 
                protections otherwise applicable to similar jobs at 
                such agency.
                    ``(K) An eligible individual who works on average 
                at least 30 hours of service per week in a subsidized 
                job placement with an employer shall be treated as a 
                full-time employee of such employer for purposes of 
                section 4980H of the Internal Revenue Code of 1986.
            ``(2) Employer of record.--
                    ``(A) In general.--With respect to eligible 
                individuals in subsidized job placements, the employer 
                of record may be--
                            ``(i) the employer for whom the individual 
                        performs work;
                            ``(ii) the State or a political subdivision 
                        of the State; or
                            ``(iii) a third party that has entered into 
                        an agreement with the State to serve as the 
                        employer of record with respect to eligible 
                        individuals participating in the State program 
                        funded under this title.
                    ``(B) Evaluations.--If the employer of record with 
                respect to an eligible individual in a subsidized job 
                placement is not the employer for whom the individual 
                performs work, any employer evaluation required under 
                this title with respect to such job placement shall 
                include an evaluation of both the employer of record 
                and the employer for whom the individual performs work.
            ``(3) Limitation on subsidized job placements per 
        employer.--
                    ``(A) In general.--No more than 10 percent of the 
                employees of an employer may be eligible individuals 
                whose employment with such employer is subsidized under 
                this title, except that--
                            ``(i) an employer with fewer than 10 
                        employees may employ 1 such individual;
                            ``(ii) an employer with more than 500 
                        employees may not employ more than 50 such 
                        individuals; and
                            ``(iii) there shall be no limitation on the 
                        number of subsidized job placements per 
                        employer if the employer's mission, as reviewed 
                        and evaluated by the State on an annual basis, 
                        includes the provision of employment services, 
                        training and other services and activities, or 
                        supportive services to individuals with 
                        barriers to employment, subject to the State 
                        program's annual review of the outcomes and 
                        experiences of eligible individuals in 
                        subsidized job placements with the employer.
                    ``(B) Application to employers of record.--For 
                purposes of the limitations described in subparagraph 
                (A), if an eligible individual in a subsidized job 
                placement performs work for an employer that is not the 
                individual's employer of record--
                            ``(i) the individual shall not be 
                        considered to be employed by the employer of 
                        record; and
                            ``(ii) the individual shall be considered 
                        to be employed by the employer for whom the 
                        individual performs work.
            ``(4) Additional placements.--If, after completing a 
        subsidized job placement, an eligible individual is unemployed 
        for at least 4 weeks (regardless of whether such weeks are 
        consecutive), the eligible individual may apply for a new 
        subsidized job placement but the immediately subsequent 
        placement may only be with a different employer (but may be 
        with the same employer of record, provided that the individual 
        is performing work for a different employer than the employer 
        for whom the individual performed work in the previous 
        subsidized job placement).
            ``(5) State variation permitted.--Employer subsidies for a 
        subsidized job placement may vary within a State and among 
        States carrying out programs under this title provided that all 
        eligible individuals employed in subsidized jobs shall be paid 
        not less than the rate specified in subsection (b)(1)(C) and 
        shall be covered by all relevant labor and employment laws.
            ``(6) Exception.--With respect to a period of economic 
        downturn, the Secretary may waive the limit on the duration of 
        a subsidized job placement under paragraph (1)(E).
    ``(c) Nondisplacement.--An employer shall not employ an eligible 
individual in a subsidized job placement if--
            ``(1) employing such individual will result in the layoff 
        or partial displacement (such as a reduction in hours, wages, 
        or employment benefits) of an existing employee or position of 
        the employer;
            ``(2) such individual will assume any of the duties or 
        responsibilities of an employee who is participating in a 
        strike, collective bargaining, or union organizing;
            ``(3) employing such individual infringes upon the 
        promotional opportunities of an existing employee of the 
        employer; or
            ``(4) such individual will perform the same work or 
        substantially the same work as that performed by any individual 
        who has been laid off or partially displaced and has not 
        received an offer from the employer to be restored to the 
        position the employee had immediately prior to being laid off 
        or partially displaced.
    ``(d) Grievance Procedures.--The State shall establish and maintain 
a procedure for the filing and adjudication of grievances from eligible 
individuals, labor organizations, and other interested individuals 
concerning participating employers, including grievances relating to 
proposed placements of eligible workers with such employers.

``SEC. 1306. REPORTS; TECHNICAL ASSISTANCE; RESEARCH; AUDIT 
              REQUIREMENT.

    ``(a) Quarterly Reports.--
            ``(1) State reports.--A State shall submit with each 
        quarterly report required under section 411(a)(1) a report on 
        the State program funded under this title that contains such 
        data and information as the Secretary shall require.
            ``(2) Reports to congress.--The Secretary shall submit with 
        each annual report to Congress required under section 411(b) a 
        report on the State programs funded under this title.
    ``(b) Ongoing Performance Assessment.--
            ``(1) In general.--The Secretary shall study and submit 
        annual reports to Congress that--
                    ``(A) measure the performances of the State 
                programs funded under this title;
                    ``(B) include information about the categories of 
                individuals and employers served by such programs and 
                projects, including the extent to which the State is 
                serving the individuals with the greatest barriers to 
                employment; and
                    ``(C) describe the activities eligible individuals 
                engaged in during the year and evaluate the quality of 
                the services provided under such programs.
            ``(2) Timing of submissions.--The Secretary shall submit 
        the reports required by paragraph (1)--
                    ``(A) in the case of the first such report, 2 years 
                after the date on which the first State program funded 
                under this title is established; and
                    ``(B) in the case of subsequent reports, annually 
                thereafter.
    ``(c) Alignment With Workforce Innovation and Opportunity Act 
Programs.--The Secretary shall coordinate with the Secretary of Labor 
on aligning performance measures and regulations for the State programs 
funded under this title with the performance measures and regulations 
applicable to the core programs of States funded under the Workforce 
Innovation and Opportunity Act.
    ``(d) Individual Eligibility Assessment Guidance.--The Secretary, 
in consultation with the Secretary of Labor as appropriate, shall study 
and issue guidance to States on best practices for assessing whether an 
individual satisfies the criteria for being an eligible individual 
under section 1301(b)(3) as being unlikely to find unsubsidized 
employment due to individual barriers, the individual's status as a 
displaced worker, or economic conditions in the State in which the 
individual lives or works.
    ``(e) Research and Evaluation.--
            ``(1) Ongoing evaluation of state implementation 
        strategies.--
                    ``(A) In general.--The Secretary shall develop an 
                experimental or control group testing protocol to 
                continuously evaluate the impact and effectiveness of 
                State strategies for implementing employment services, 
                training and other services and activities under this 
                title, including--
                            ``(i) the impact of such State strategies 
                        on employment outcomes for eligible 
                        individuals;
                            ``(ii) the relationship among engagement, 
                        impact, and program outcomes, as well as an 
                        examination of program performance;
                            ``(iii) an identification of successful 
                        activities for achieving the purposes 
                        identified in section 1301;
                            ``(iv) the impact on income and earnings 
                        gains, job quality improvement, and poverty 
                        reduction (relative to both the official 
                        poverty line and the supplemental poverty 
                        measure) for eligible individuals participating 
                        in the State program funded under this title 
                        and the families of such individuals;
                            ``(v) an evaluation of program access to 
                        determine the extent to which States are 
                        serving individuals with the greatest barriers 
                        to employment and the portion of State 
                        caseloads that are made up of such individuals; 
                        and
                            ``(vi) any other analysis deemed 
                        appropriate by the Secretary.
                    ``(B) Other requirements.--
                            ``(i) Diverse selection of programs.--In 
                        choosing State programs to participate in 
                        evaluations under this subsection, the 
                        Secretary shall select programs representing a 
                        diversity of policy approaches, geographic 
                        locations, labor market conditions, and 
                        populations served.
                            ``(ii) Data-driven evaluation.--Evaluations 
                        under this subsection shall be rigorous and use 
                        data to statistically measure program outcomes 
                        and impacts.
            ``(2) Reports.--Not later than 2 years after the date of 
        enactment of this section and every 2 years thereafter, the 
        Secretary shall submit to Congress and make publicly available 
        a report on the initial implementation of activities conducted 
        under this title, including any available results of the 
        evaluations conducted under paragraph (1) with respect to such 
        activities, together with such recommendations for legislation 
        or administrative action as the Secretary determines 
        appropriate.
            ``(3) Best practices.--The Secretary shall use the results 
        of the evaluations conducted under paragraph (1) to recommend 
        best practices for implementing employment services, training 
        and other services and activities under this title and share 
        such information with participating States under this title.
            ``(4) Funding.--Out of any money in the Treasury not 
        otherwise appropriated, there are appropriated to the Secretary 
        for fiscal year 2022 $100,000,000 to conduct evaluations under 
        this subsection. Amounts appropriated under the preceding 
        sentence shall remain available until expended.
    ``(f) Coordination of Data Collection.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Labor, shall determine the data States shall 
        collect and report regarding the State program funded under 
        this title and the extent to which that data collection and 
        reporting, and required evaluations, can be coordinated with 
        the data collection, reporting, and evaluations required for 
        the State program funded under part A of title IV and the 
        performance accountability measures under section 116(b) of the 
        Workforce Innovation and Opportunity Act for the adult and 
        dislocated worker employment and training activities of the 
        State.
            ``(2) Coordination with other efforts.--The Secretary, in 
        consultation with the Secretary of Labor and the Secretary of 
        Education, shall assure that the data collected under this 
        title aligns as much as possible with efforts to collect 
        longitudinal data related to the performance of education, 
        training, and workforce programs.
    ``(g) Disaggregated Data.--Data collected and submitted under this 
section shall be disaggregated by race, ethnicity, age, gender, and 
classification in the Standard Occupational Classification System of 
the Bureau of Labor Statistics.
    ``(h) Funding.--The Secretary shall use funding made available 
under section 1301(c)(2) to conduct the performance assessments 
required under subsection (b) and the research and evaluation required 
under subsection (e).
    ``(i) Inspector General Audit.--The Inspector General of the 
Department of Health and Human Services shall biennially audit a sample 
of the State programs funded under this title to ensure compliance with 
program requirements, including compliance with the nondisplacement 
requirements of section 1305(c), and to identify and protect against 
any waste, fraud, or abuse in such programs.

``SEC. 1307. DIRECT FUNDING AND ADMINISTRATION FOR PROGRAMS OPERATED BY 
              INDIAN TRIBES.

    ``(a) In General.--An Indian tribe or intertribal consortium with a 
tribal family assistance plan approved under section 412 (or any Indian 
tribe that is a member of such a consortium) or under the Indian 
Employment, Training and Related Services Act (25 U.S.C. 3401 et seq.) 
that proposes to establish a program under this title shall submit an 
application to the Secretary to directly receive payments for 
expenditures made to carry out the program (in this section referred to 
as a `tribal program application').
    ``(b) Tribal Program Application Requirements.--Subject to 
subsection (c), a tribal program application shall include a plan that 
meets the requirements of section 1302 in the same manner as such 
requirements apply to a State.
    ``(c) Program Requirements.--
            ``(1) In general.--The program requirements specified in 
        this title shall apply to an Indian tribe or intertribal 
        consortium with a tribal program application and plan approved 
        under this section in the same manner as such requirements 
        apply to a State except to the extent that the Secretary 
        determines that a requirement cannot reasonably be met by a 
        tribe in the same or similar manner as such requirement would 
        apply to a State.
            ``(2) Non-supplantation requirement.--Funds paid to an 
        Indian tribe or intertribal consortium with a tribal program 
        application and plan approved under this section or the Indian 
        Employment, Training and Related Services Act (25 U.S.C. 3401 
        et seq.) shall be used to supplement, not supplant, the total 
        amount of Indian tribe or intertribal consortium expenditures 
        for employment services, training and other services and 
        activities, and supportive services provided through the adult 
        and dislocated worker employment and training activities of the 
        Indian tribe or intertribal consortium for the fiscal year.
    ``(d) Payments.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall pay an Indian tribe or intertribal consortium with a 
        tribal program application and plan approved under this section 
        in the same manner as States are paid under section 1304.
            ``(2) Application of tribal fmap.--The Federal medical 
        assistance percentage that would apply under subsection (d) of 
        section 479B if an Indian tribe or tribal consortium operated a 
        program under that section (in this subsection referred to as 
        the `tribal FMAP'), shall apply to payments made to the Indian 
        tribe or tribal consortium for expenditures attributable to 
        carrying out a program under this title, unless the tribal FMAP 
        is less than the Federal medical assistance percentage that 
        applies to the State in which the Indian tribe or tribal 
        consortium is located in which case the State's Federal medical 
        assistance percentage shall apply. In the case of an Indian 
        tribe or tribal consortium that is located in more than 1 
        State, the State in which the Indian tribe or tribal consortium 
        is located that has the highest Federal medical assistance 
        percentage shall apply to the preceding sentence.

``SEC. 1308. DIRECT FUNDING AND ADMINISTRATION FOR PROGRAMS OPERATED BY 
              LOCAL GOVERNMENTS.

    ``(a) In General.--The Secretary shall establish procedures under 
which a local government, or a consortium of local governments within a 
State, may submit an application to the Secretary to establish a 
program under this title and directly receive payments for expenditures 
made to carry out the program (in this section referred to as a `local 
government program application'), if--
            ``(1) the State in which the local government or consortium 
        is located has not elected to establish a State program under 
        this title; or
            ``(2) the local government or consortium can demonstrate 
        that a local program would meet a need or serve a population 
        that is not met or sufficiently served by the State program 
        under this title.
    ``(b) Local Government Program Application Requirements.--Subject 
to subsection (c), a local government program application shall include 
a plan that meets the requirements of section 1302 in the same manner 
as such requirements apply to a State.
    ``(c) Program Requirements.--
            ``(1) In general.--The program requirements specified in 
        this title shall apply to a local government or consortium with 
        a local government program application and plan approved under 
        this section in the same manner as such requirements apply to a 
        State except to the extent that the Secretary determines that a 
        requirement cannot reasonably be met by a local government in 
        the same or similar manner as such requirement would apply to a 
        State.
            ``(2) Non-supplantation requirement.--Funds paid to a local 
        government or consortium with a local government program 
        application and plan approved under this section shall be used 
        to supplement, not supplant, the total amount of local 
        government or consortium expenditures for employment services, 
        training and other services and activities, and supportive 
        services provided through the adult and dislocated worker 
        employment and training activities of the local government or 
        consortium for the fiscal year.
    ``(d) Payments.--The Secretary shall pay a local government or 
consortium with a local government program application and plan 
approved under this section in the same manner as States are paid under 
section 1304.

``SEC. 1309. GRANTS TO NONPROFIT ORGANIZATIONS.

    ``(a) In General.--The Secretary, in consultation with the 
Secretary of Labor, shall award multi-year grants on a competitive 
basis to nonprofit organizations that submit applications to carry out 
employment services programs, if the nonprofit organization 
demonstrates that--
            ``(1) the nonprofit organization is unable to receive 
        funding through the relevant State program under this title; 
        and
            ``(2) the employment services program of the nonprofit 
        organization would meet a need or serve a population that is 
        not met or sufficiently served by the relevant State program 
        under this title.
    ``(b) Scope of Grants.--Grants under this subsection may be 
regional programs or serve specific populations.
    ``(c) Application Process.--A nonprofit organization seeking a 
grant under this subsection shall submit an application to the 
Secretary at such a time, in such a manner, and containing such 
information as the Secretary may reasonably require. Such information 
shall, to the extent practicable, include information similar to that 
required in a State plan under section 1302.
    ``(d) Selection.--The Secretary shall select applicants to receive 
a grant under this subsection based on--
            ``(1) the applicant's level of experience and commitment to 
        providing subsidized jobs;
            ``(2) the applicant's demonstrated ability to recruit 
        individuals of the region or other specific population served 
        by the grant and provide work opportunities for such 
        individuals; and
            ``(3) such other criteria as the Secretary determines 
        appropriate.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section for each of 
fiscal years 2021 through 2026, such sums as are necessary.''.
    (b) Public Information About Availability of Employment Services.--
Not later than January 1, 2023, the Secretary of Health and Human 
Services shall make information publicly available to jobseekers 
(either on a website established for such purpose or on an existing 
Federal online resource that provides information to jobseekers) 
about--
            (1) whether they are eligible for employment services under 
        a State, local government, or tribal program under title XIII 
        of the Social Security Act (as added by subsection (a)); and
            (2) the appropriate State, local government, or tribal 
        agency to contact for further information about such services 
        and programs.

SEC. 4. EMPLOYEE RETENTION WORK OPPORTUNITY CREDIT.

    (a) In General.--Section 51 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(l) Employee Retention Credit.--
            ``(1) In general.--The amount of the work opportunity 
        credit determined under subsection (a) for the taxable year 
        shall be increased by an amount equal to 40 percent of the 
        qualified second-year wages for such year with respect to 
        previously subsidized employees.
            ``(2) Qualified second-year wages.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified second-year wages' means qualified 
                wages (determined as if previously subsidized employees 
                were members of a targeted group)--
                            ``(i) which are paid to a previously 
                        subsidized employee, and
                            ``(ii) which are attributable to service 
                        rendered during the 1-year period beginning on 
                        the day after the last day of the 1-year period 
                        with respect to such employee determined under 
                        subsection (b)(2).
                    ``(B) Limitation.--The amount of the qualified 
                second-year wages which may be taken into account with 
                respect to any individual shall not exceed $6,000 per 
                year.
            ``(3) Previously subsidized employee.--For purposes of this 
        subsection, the term `previously subsidized employee' means an 
        individual who is hired by an employer through the subsidized 
        employment program under title XIII of the Social Security Act 
        and who has been employed by the same employer for a 
        consecutive 24 months as of the last day of the preceding 
        taxable year.''.
    (b) GAO Study.--The Comptroller General of the United States shall 
conduct a study on the employee retention credit under section 51(l) of 
the Internal Revenue Code of 1986 and, not later than 6 months after 
the last day of the second taxable year beginning after the date of the 
enactment of this Act, shall report to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of 
Representatives--
            (1) whether such retention credit had a meaningful impact 
        on retention as compared with other currently existing and 
        previous subsidized employment programs; and
            (2) whether such retention credit was easily understood by 
        employers and had an impact on hiring decisions in addition to 
        any subsidy received under title XIII of the Social Security 
        Act.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. CONFORMING AMENDMENTS.

    (a) TANF.--
            (1) State plan.--Section 402 (42 U.S.C. 602) is amended--
                    (A) in subsection (a)(1)--
                            (i) in subparagraph (A)(iii), by inserting 
                        ``or employment services, training and other 
                        services and activities, and supportive 
                        services provided under the State program 
                        funded under title XIII'' before the period; 
                        and
                            (ii) in subparagraph (B)--
                                    (I) in clause (iv), by inserting 
                                ``, unless the parent or caretaker is 
                                participating in the State program 
                                funded under title XIII'' before the 
                                period; and
                                    (II) by adding at the end the 
                                following:
                                    ``(vi) The document shall indicate 
                                whether the State elects to carry out a 
                                State program to provide employment 
                                services, training and other services 
                                and activities, and supportive services 
                                under title XIII.''; and
                    (B) by adding at the end the following:
    ``(d) State Option To Submit Plan That Aligns With the State Plan 
Under Title XIII.--A State may elect to submit the State plan required 
under this section at the same time and in the same manner, and to 
apply for the same period, as the State plan required under section 
1302.''.
            (2) Participation in the state employment, training, and 
        supportive services program under title xiii-a deemed to be 
        meeting work participation requirements.--Section 407(c)(2) (42 
        U.S.C. 607(c)(2)) is amended by adding at the end the 
        following:
                    ``(E) Participation in the state employment, 
                training, and supportive services program under title 
                xiii-a deemed to be meeting work participation 
                requirements.--For purposes of determining monthly 
                participation rates under paragraphs (1)(B)(i) and 
                (2)(B) of subsection (b), the following individuals are 
                deemed to be engaged in work for a month:
                            ``(i) Recipients.--Any recipient who is 
                        participating in the State employment, 
                        training, and supportive services program under 
                        title XIII (for any number of hours per week 
                        during the month) and is receiving assistance 
                        under the State program funded under this part 
                        or under any State program funded with 
                        qualified State expenditures (as defined in 
                        section 409(a)(7)(B)(i)).
                            ``(ii) Individuals who would otherwise be 
                        recipients.--Any individual who is 
                        participating in the State employment, 
                        training, and supportive services program under 
                        title XIII (for any number of hours per week 
                        during the month) and would be a recipient of 
                        assistance under the State program funded under 
                        this part or under any State program funded 
                        with qualified State expenditures (as defined 
                        in section 409(a)(7)(B)(i)) but for the 
                        individual's participation in the State 
                        employment, training and supportive services 
                        program under title XIII.''.
            (3) Tribal programs.--Section 412(b) (42 U.S.C. 612(b)) is 
        amended by adding at the end the following:
            ``(4) Option to submit plan that aligns with the plan under 
        title xiii.--An Indian tribe or tribal consortium may elect to 
        submit a tribal family assistance plan required under this 
        section at the same time and in the same manner, and to apply 
        for the same period, as the plan required under section 
        1307.''.
    (b) Title XI.--Section 1101(a)(1) of such Act (42 U.S.C. 
1301(a)(1)) is amended by striking ``title XX'' and inserting ``titles 
XIII and XX''.
    (c) Internal Revenue Code.--Section 51(c)(2)(B) of the Internal 
Revenue Code of 1986 is amended by striking ``section 482(e)'' and 
inserting ``title XIII''.
    (d) Table of Contents for Title XIII.--Title XIII, as added by 
section 3(a), is amended by inserting the following before section 
1301:

    ``TITLE XIII--REEMPLOYMENT AND OTHER JOB-RELATED ASSISTANCE AND 
                                BENEFITS

``Sec. 1301. Purpose; definitions; administration.
``Sec. 1302. State plan requirements.
``Sec. 1303. Use of funds.
``Sec. 1304. Payments to States.
``Sec. 1305. Other program requirements.
``Sec. 1306. Reports; technical assistance; research; audit 
                            requirement.
``Sec. 1307. Direct funding and administration for programs operated by 
                            Indian tribes.
``Sec. 1308. Direct funding and administration for programs operated by 
                            local governments.
``Sec. 1309. Grants to nonprofit organizations.''.

SEC. 6. EFFECTIVE DATE; REGULATIONS.

    (a) Effective Date.--Except as provided in section 4(c), the 
amendments made by this Act shall take effect on January 1, 2023.
    (b) Option To Accelerate Funding.--
            (1) In general.--If the Secretary of Health and Human 
        Services receives from a State, Indian tribe, or unit of local 
        government, a written notice, in such form and manner and 
        containing such information as the Secretary shall require, 
        that the State, Indian tribe, or unit of local government is 
        operating, or wishes to operate, an employment assistance 
        program, then, during the period beginning on the first day of 
        the first fiscal quarter that begins on or after the date that 
        the Secretary receives such notice and ending on December 31, 
        2022, the Secretary shall make payments to the State, Indian 
        tribe, or unit of local government under paragraph (3).
            (2) Definitions.--In this subsection:
                    (A) Employment assistance program.--The term 
                ``employment assistance program'' means a program 
                operated by a State, Indian tribe, or local government 
                that provides qualified program assistance, including a 
                program funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 401 et seq.) or any other 
                State, tribal, or local program financed with Federal 
                funds.
                    (B) Qualified program assistance.--The term 
                ``qualified program assistance'' means employment 
                services, training and other services and activities, 
                or supportive services (as such terms are defined in 
                section 1301(b) of the Social Security Act, as added by 
                section 3), including any such services designed to 
                reemploy individuals who are unemployed or 
                underemployed for reasons related to COVID-19, but 
                shall not include any employment services, training and 
                other services and activities or supportive services 
                that cannot be provided in a manner that is safe for 
                both program administrators and participants due to a 
                COVID-19 outbreak.
            (3) Payments.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary shall pay to any State, Indian tribe, or 
                local government that has a notice in effect under 
                paragraph (1) for a fiscal quarter with respect to an 
                employment assistance program, an amount equal to the 
                amount that such State, tribe, or local government 
                would receive under title XIII of the Social Security 
                Act (as added by section 3) if--
                            (i) such title were in effect with respect 
                        to such State, tribe, or local government;
                            (ii) the State, tribe, or local government 
                        had a plan that met all requirements of such 
                        title and was approved under such title for 
                        such fiscal quarter, and the amounts expended 
                        by the State, tribe, or local government on 
                        qualified program assistance under such 
                        program, were amounts expended by the State, 
                        tribe, or local government to provide such 
                        assistance under such plan;
                            (iii) the requirements of sections 1303, 
                        1304(c), 1305, and 1306 of such title did not 
                        apply; and
                            (iv) the Federal medical assistance 
                        percentage for the State, Indian tribe or 
                        tribal consortium, or local government were 100 
                        percent.
                    (B) Limitations.--
                            (i) No duplicate funding.--For purposes of 
                        subparagraph (A), in determining the amounts 
                        expended by a State, tribe, or local government 
                        under an employment assistance program to 
                        provide qualified program assistance, the total 
                        amount of State expenditures on such assistance 
                        shall be reduced by the amount of Federal funds 
                        (other than funds paid under this subsection) 
                        that have been paid or that are expected to be 
                        paid to the State, tribe, or local government 
                        with respect to such assistance.
                            (ii) No funding for administrative expenses 
                        unrelated to qualified program assistance.--No 
                        payment shall be made to a State, Indian tribe, 
                        or local government under this subsection for 
                        administrative expenses of an employment 
                        assistance program that are not attributable to 
                        the administration of qualified program 
                        assistance.
    (c) Regulations.--The Secretary of Health and Human Services, in 
consultation with the Secretary of Labor as appropriate, shall--
            (1) not later than 30 days after the date of enactment of 
        this Act, issue guidance to States on how to seek accelerated 
        funding under subsection (b);
            (2) not later than 9 months after the date of the enactment 
        of this Act, issue proposed regulations for the purpose of 
        implementing title XIII of the Social Security Act (as added by 
        section 2 of this Act), including regulations establishing 
        uniform data collection requirements; and
            (3) not later than 18 months after the date of enactment of 
        this Act, publish final regulations for such purpose.
                                 <all>