Community Services Block Grant Modernization Act of 2022
Bill: H.R.5129 | Sponsor: Rep. Bonamici, Suzanne (D-OR)
Policy area: Social Welfare

Summary:
Community Services Block Grant Modernization Act of 2022
This bill reauthorizes the Community Services Block Grant program through FY2032 and otherwise modifies the program. The program supports various antipoverty activities, primarily through formula-based allotments to states, Indian tribes, and territories.
In particular, the bill makes changes to the program's administration and leadership; performance measurement; and allotments to states and territories.
The bill also expands eligibility for services and activities funded by the program to 200% of the federal poverty line (FPL). Under current law, eligibility is generally set at the FPL.

To amend the Community Services Block Grant Act to reauthorize and 
                           modernize the Act.

    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 ``Community Services Block Grant 
Modernization Act of 2022''.

SEC. 2. REAUTHORIZATION.

    Subtitle B of title VI of the Omnibus Budget Reconciliation Act of 
1981 (42 U.S.C. 9901 et seq.) is amended to read as follows:

          ``Subtitle B--Community Services Block Grant Program

``SEC. 671. SHORT TITLE.

    ``This subtitle may be cited as the `Community Services Block Grant 
Act'.

``SEC. 672. PURPOSES.

    ``The purposes of this subtitle are--
            ``(1) to reduce poverty in the United States by supporting 
        the activities of community action agencies and other community 
        services network organizations that improve the economic 
        security of low-income individuals and families and create new 
        economic opportunities in the communities where they live; and
            ``(2) to accomplish the purposes described in paragraph (1) 
        by--
                    ``(A) strengthening community capabilities for 
                identifying poverty conditions and opportunities to 
                alleviate such conditions;
                    ``(B) empowering residents of the low-income 
                communities served to respond to the unique problems 
                and needs in their communities through their maximum 
                feasible participation in advising, planning, and 
                evaluating the programs, projects, and services funded 
                under this subtitle;
                    ``(C) using innovative community-based approaches 
                that produce a measurable impact on the causes and 
                effects of poverty, including whole family approaches 
                that create opportunities for, and address the needs 
                of, parents and children together;
                    ``(D) coordinating Federal, State, local, and other 
                assistance, including private resources, related to the 
                reduction of poverty so that resources can be used in a 
                manner responsive to local needs and conditions; and
                    ``(E) broadening the resources directed to the 
                elimination of poverty, so as to promote partnerships 
                that include--
                            ``(i) private, religious, charitable, and 
                        neighborhood-based organizations; and
                            ``(ii) individuals, businesses, labor 
                        organizations, professional organizations, and 
                        other organizations engaged in expanding 
                        opportunities for all individuals.

``SEC. 673. DEFINITIONS.

    ``In this subtitle:
            ``(1) Agency-wide strategic plan.--The term `agency-wide 
        strategic plan' means a plan that has been adopted by an 
        eligible entity in the previous 5 years and establishes goals 
        that include meeting needs identified by the entity in 
        consultation with residents of the community through a process 
        of comprehensive community needs assessment.
            ``(2) Poverty line.--The term `poverty line' means the 
        poverty guideline calculated by the Secretary from the most 
        recent data available from the Bureau of the Census. The 
        Secretary shall revise the poverty line annually (or at any 
        shorter interval the Secretary determines to be feasible and 
        desirable). The required revision shall be accomplished by 
        multiplying the official poverty thresholds from the Bureau of 
        the Census by the percentage change in the Consumer Price Index 
        for All Urban Consumers during the annual or other interval 
        immediately preceding the time at which the revision is made.
            ``(3) Community action agency.--The term `community action 
        agency' means an eligible entity (which meets the requirements 
        of paragraph (1) or (2), as appropriate, of section 680(c)) 
        that delivers multiple programs, projects, and services to a 
        variety of low-income individuals and families.
            ``(4) Community action plan.--The term `community action 
        plan' means a detailed plan, including a budget, that is 
        adopted by an eligible entity, for expenditures of funds 
        appropriated for a fiscal year under this subtitle for the 
        activities supported directly or indirectly by such funds.
            ``(5) Community services network organization.--The term 
        `community services network organization' means any of the 
        following organizations funded under this subtitle:
                    ``(A) A grantee.
                    ``(B) An eligible entity.
                    ``(C) A Tribal grantee.
                    ``(D) An association with a membership composed 
                primarily of grantees, eligible entities, Tribal 
                grantees, or associations of grantees, eligible 
                entities, or Tribal grantees.
            ``(6) Department.--The term `Department' means the 
        Department of Health and Human Services.
            ``(7) Eligible entity.--The term `eligible entity' means an 
        entity--
                    ``(A) that is an eligible entity described in 
                section 673(1) of the Community Services Block Grant 
                Act (as in effect immediately before the date of the 
                enactment of the Community Services Block Grant 
                Modernization Act of 2022) as of the day before such 
                date of enactment, or has been designated by the 
                process described in section 680(a) (including an 
                organization serving migrant or seasonal farmworkers 
                that is so described or designated); and
                    ``(B) that has a tripartite board described in 
                paragraph (1) or (2), as appropriate, of section 
                680(c).
            ``(8) Evidence-based practice.--The term `evidence-based 
        practice' means an activity, strategy, or intervention that--
                    ``(A) demonstrates a statistically significant 
                effect on improving relevant outcomes based on at least 
                one well-designed and well-implemented experimental or 
                quasi-experimental study, or at least one well-designed 
                and well-implemented correlational study with 
                statistical controls for selection bias, and includes 
                ongoing efforts to examine the effects of such 
                activity, strategy, or intervention; or
                    ``(B) demonstrates a rationale based on high-
                quality research findings or positive evaluation that 
                such activity, strategy, or intervention is likely to 
                improve relevant outcomes, and includes ongoing efforts 
                to examine the effects of such activity, strategy, or 
                intervention.
            ``(9) Grantee.--The term `grantee' means a recipient of a 
        grant under section 675 or 676.
            ``(10) Private, nonprofit organization.--The term `private, 
        nonprofit organization' means a domestic organization that is--
                    ``(A) described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under section 501(a) of such Code; and
                    ``(B) described in paragraph (1) or (2) of section 
                509(a) of the Internal Revenue Code of 1986.
            ``(11) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.
            ``(12) Service area.--The term `service area' means the 
        unique geographic area which the State has designated as the 
        area to be served by an eligible entity with funding under 
        section 679(a)(1).
            ``(13) State.--The term `State' means any of the several 
        States, the District of Columbia, Puerto Rico, Guam, American 
        Samoa, the United States Virgin Islands, or the Commonwealth of 
        the Northern Mariana Islands.
            ``(14) Tribal grantee.--The term `Tribal grantee' means an 
        Indian Tribe or Tribal organization, as defined in section 
        677(a), that receives a grant under section 677(c).

``SEC. 674. AUTHORIZATION OF COMMUNITY SERVICES BLOCK GRANT PROGRAM.

    ``(a) Authorization of Program.--The Secretary is authorized to 
carry out a community services block grant program and to make grants 
through the program, under sections 675 and 676, to States to support 
local community action plans carried out by eligible entities to reduce 
poverty in the communities served by such entities.
    ``(b) Authority of Secretary.--The Secretary is authorized to carry 
out other community programs described in section 690.

``SEC. 675. GRANTS TO TERRITORIES.

    ``(a) Apportionment.--The Secretary shall apportion the amount 
reserved under section 691(c)(1) for each fiscal year on the basis of 
need, based on the most recent applicable data available from the 
Bureau of the Census to account for poverty, to eligible jurisdictions 
among Guam, American Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands.
    ``(b) Grants.--The Secretary shall make a grant to each eligible 
jurisdiction to which subsection (a) applies for the amount apportioned 
under subsection (a).
    ``(c) Plans for Apportionment to Territories.--No later than six 
months after the enactment of this Act, the Secretary shall make 
publicly available the Department's plan for apportioning funds among 
territories, including factors that contribute to the calculation of 
need and methodology for calculating the apportionment for each 
territory. The Secretary must make publicly available any updates or 
changes to this plan no less frequently than any time new applicable 
data are available from the Bureau of Census.

``SEC. 676. ALLOTMENTS AND GRANTS TO STATES.

    ``(a) Allotments in General.--From the amount appropriated under 
section 691(a) for each fiscal year and remaining after the Secretary 
makes the reservations required by section 691(c), the Secretary shall 
allot to each eligible State, subject to section 677, an amount that 
bears the same ratio to such remaining amount as the amount received by 
the State for fiscal year 1981 under section 221 of the Economic 
Opportunity Act of 1964 bore to the total amount received by all States 
for fiscal year 1981 under such section, except as provided in 
subsection (b).
    ``(b) Minimum Allotments.--
            ``(1) In general.--The Secretary shall allot to each State 
        not less than \1/2\ of 1 percent of the amount appropriated 
        under section 691(a) for such fiscal year and remaining after 
        the Secretary makes the reservations required by section 
        691(c).
            ``(2) Years with greater available funds.--Notwithstanding 
        paragraph (1), if the amount appropriated under section 691(a) 
        for a fiscal year and remaining after the Secretary makes the 
        reservations required by section 691(c) exceeds $900,000,000, 
        no State shall receive under this section less than \3/4\ of 1 
        percent of the remaining amount.
    ``(c) Grants and Payments.--Subject to section 677, the Secretary 
shall make grants to eligible States for the allotments described in 
subsections (a) and (b). The Secretary shall make payments for the 
grants in accordance with section 6503(a) of title 31, United States 
Code. The Secretary shall allocate the amounts allotted under 
subsections (a) and (b) on a quarterly basis at a minimum, notify the 
States of their respective allocations, and make each State's first 
allocation amount in a fiscal year available for expenditure by the 
State no later than 30 days after receipt of an approved apportionment 
from the Office of Management and Budget and, for subsequent allocation 
amounts in the fiscal year, not later than 30 days after the start of 
the period for which the Secretary is allocating the funds.
    ``(d) Definition.--In this section, the term `State' does not 
include Guam, American Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands.

``SEC. 677. PAYMENTS TO INDIAN TRIBES.

    ``(a) Definitions.--In this section:
            ``(1) Indian.--The term `Indian' means a member of an 
        Indian Tribe or Tribal organization.
            ``(2) Indian tribe or tribal organization.--The term 
        `Indian Tribe or Tribal organization' means a Tribe, band, or 
        other organized group recognized in the State in which the 
        Tribe, band, or group resides, or considered by the Secretary 
        of the Interior to be an Indian Tribe or an Indian organization 
        for any purpose.
    ``(b) Reservation.--
            ``(1) Application.--Paragraph (2) shall apply only if, with 
        respect to any State, the Secretary--
                    ``(A) receives a request from the governing body of 
                an Indian Tribe or Tribal organization in such State 
                that assistance under this subtitle be made available 
                directly to such Indian Tribe or Tribal organization; 
                and
                    ``(B) determines that the members of such Indian 
                Tribe or Tribal organization would be better served by 
                means of grants made directly to such Indian Tribe or 
                Tribal organization to provide benefits under this 
                subtitle.
            ``(2) Amount.--The Secretary shall reserve from amounts 
        allotted to a State under section 676 for a fiscal year not 
        less than the amount that bears the same ratio to the State 
        allotment for the fiscal year as the population of all eligible 
        Indians in that particular State for whom a determination has 
        been made under paragraph (1) bears to the population of all 
        individuals eligible for assistance through a grant made under 
        section 676 to such State.
    ``(c) Awards.--The amount reserved by the Secretary on the basis of 
a determination made under subsection (b)(1)(B) shall be made available 
by grant to the Indian Tribe or Tribal organization serving the Indians 
for whom the determination has been made under subsection (b)(1)(B).
    ``(d) Plan.--In order for an Indian Tribe or Tribal organization to 
be eligible for a grant award for a fiscal year under this section, the 
Indian Tribe or Tribal organization shall submit to the Secretary a 
plan for such fiscal year that meets such criteria as the Secretary may 
prescribe by regulation.
    ``(e) Alternative Performance Measurement System.--The Secretary 
may implement alternative requirements for implementation by an Indian 
Tribe or Tribal Organization of the requirements of section 686(a).

``SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY ACTION PLANS AND 
              APPLICATIONS.

    ``(a) State Lead Agency.--
            ``(1) Designation.--The chief executive officer of a State 
        desiring to receive a grant under section 675 or 676 shall 
        designate, in an application submitted to the Secretary under 
        subsection (b), an appropriate State agency that agrees to 
        comply with the requirements of paragraph (2), to act as a lead 
        agency for purposes of carrying out State activities under this 
        subtitle.
            ``(2) Duties of state lead agencies.--The State lead 
        agency--
                    ``(A) shall be authorized by the chief executive 
                officer to convene State agencies and coordinate 
                information and activities funded under this subtitle;
                    ``(B) shall develop the State plan to be submitted 
                to the Secretary under subsection (b), which shall be 
                based primarily on the community action plans of 
                eligible entities, submitted to the State as a 
                condition of receiving funding under this subtitle;
                    ``(C) may revise an existing State plan for 
                submission to the Secretary, if considered a major 
                revision under criteria established by the Secretary in 
                regulations required under section 689(a)(1));
                    ``(D) in conjunction with the development or 
                revision of the State plan as required under subsection 
                (b)--
                            ``(i) shall hold at least 1 hearing in the 
                        State on the proposed plan or a proposed major 
                        revision to a plan to provide to the public an 
                        opportunity to comment on the public record on 
                        the proposed use and distribution of funds 
                        under the plan;
                            ``(ii) not less than 15 days before the 
                        hearing, shall distribute notice of the hearing 
                        and a copy of the proposed plan or major plan 
                        revision statewide to the public and directly 
                        to the chief executive officer and the 
                        chairperson of the board of each of the 
                        eligible entities (or designees) and other 
                        community services network organizations; and
                            ``(iii) in the case of any proposed plan 
                        revision, without regard to whether it is a 
                        major revision, shall notify and distribute a 
                        copy of the proposed revision statewide 
                        directly to the chief executive officer and the 
                        chairperson of the board of each of the 
                        eligible entities (or designees) and other 
                        community services network organizations, 
                        before submission of such proposed revision to 
                        the Secretary; and
                    ``(E) at least every 3 years, in conjunction with 
                the development of the State plan, shall hold at least 
                1 legislative hearing.
    ``(b) State Application for State Program and State Plan.--
Beginning with the first fiscal year following the transition period 
described in section 3 of the Community Services Block Grant 
Modernization Act of 2022, to be eligible to receive a grant under 
section 675 or 676, a State shall prepare and submit to the Secretary 
for approval an application containing a State plan covering a period 
of not more than 2 fiscal years. The application shall be submitted not 
later than 60 days before the beginning of the first fiscal year 
covered by the plan, and shall contain such information as the 
Secretary shall require, including--
            ``(1) a description of the manner in which funds made 
        available through the grant under section 675 or 676 will be 
        used to carry out the State activities described in section 
        679(b) and the State's community action plans;
            ``(2) a description summarizing the community action plans 
        of the eligible entities serving the State;
            ``(3) an assurance that the State and all eligible entities 
        in the State will participate in a performance measurement 
        system under section 686(a)(1)(A);
            ``(4) a plan for the State's oversight of eligible 
        entities;
            ``(5) an assurance that the State will make payments to 
        eligible entities in accordance with section 679(a)(2);
            ``(6) an assurance that no eligible entity in the State 
        that received, in the previous fiscal year, funding through a 
        grant made under section 675 or 676 will have funding reduced 
        below the proportional share of funding the entity received 
        from the State in the previous fiscal year, or eliminated, or 
        its designation as an eligible entity terminated, unless, after 
        providing the affected entity (or entities, as applicable) with 
        notice and an opportunity for a hearing on the record, the 
        State determines that cause exists for the reduction or 
        elimination of funding or for termination of such designation, 
        subject to review by the Secretary as provided in section 
        684(c); and--
                    ``(A) in the case of failure of an eligible entity 
                to comply with the terms of a corrective action plan 
                relating to correction of a serious deficiency, except 
                according to the procedures set forth in section 
                684(b); and
                    ``(B) for purposes of this subsection, the term 
                `cause' means--
                            ``(i) the failure of an eligible entity to 
                        comply with the terms of a corrective action 
                        plan relating to correction of a serious 
                        deficiency as described in subsection 684(b); 
                        or
                            ``(ii) a statewide proportional 
                        distribution of funds provided through a 
                        community services block grant under this 
                        subtitle to respond to--
                                    ``(I) the results of the most 
                                recently available census or other 
                                appropriate demographic data;
                                    ``(II) severe economic dislocation; 
                                or
                                    ``(III) the designation of an 
                                eligible entity to serve a geographic 
                                area that has been unserved for at 
                                least the previous 5 years;
            ``(7) an assurance that each eligible entity serving the 
        State has established procedures that permit a low-income 
        individual or organization to petition for adequate 
        representation of such individuals or organizations, 
        respectively, on the board of the eligible entity;
            ``(8) a description of outcome measures to be used to 
        measure State and eligible entity performance in achieving the 
        goals of the State plan and the community action plans, 
        respectively;
            ``(9) an assurance that the State will develop a policy on 
        board vacancies in accordance with section 680(c)(3) and 
        provide guidance to assist eligible entities in filling board 
        vacancies;
            ``(10) an assurance that the State and the eligible 
        entities in the State will coordinate, and establish linkages 
        between, governmental and other social services programs to 
        assure the effective delivery of such services to low-income 
        individuals and to avoid duplication of such services, and a 
        description of how the State and the eligible entities will 
        coordinate the provision of employment and training activities, 
        as defined in section 3 of the Workforce Innovation and 
        Opportunity Act, in the State and in communities with entities 
        providing activities through statewide and local workforce 
        development systems under such Act;
            ``(11) an assurance that the State will provide on its 
        website--
                    ``(A) a warning notice to caution individuals that 
                services under this subtitle are provided at no cost 
                and that any questions regarding services provided 
                under this subtitle should be directed to the State's 
                community services block grant coordinator;
                    ``(B) a warning notice about verified scams or 
                fraudulent activities related to the programs 
                administered under this subtitle; and
                    ``(C) information to direct individuals who believe 
                they have been solicited for such a scam, fraudulent 
                activity, or any form of payment to contact the 
                Department of Health and Human Services' (HHS) Fraud 
                Hotline; and
            ``(12) a description of how the State, and eligible 
        entities in the State, will coordinate with other programs 
        related to meeting critical household needs that address the 
        purposes of this subtitle, including with resources that reduce 
        the burden of energy and water utility costs.
    ``(c) Approval.--The Secretary shall notify the chief executive 
officer of each State submitting an application containing a State plan 
under this section of the approval, disapproval, or approval in part, 
of the application, not later than 60 days after receiving the 
application. In the event of a full or partial disapproval, the 
Secretary's notification shall include a description of changes 
necessary for final approval. In the event of a partial approval, the 
Secretary may allow grantee use of funds for activities included in the 
portions of the plan which the Secretary has approved. In the event a 
State application fails to be approved in whole or in part before the 
end of the third month of the period covered by such plan the Secretary 
may award funding as specified in section 684(a)(5)(B).
    ``(d) Public Inspection.--Each plan and major revision to a State 
plan prepared under this section shall be distributed for public 
inspection and comment. A hearing on such plan or major revision shall 
be held as required under subparagraphs (C) and (D) of subsection 
(a)(2), but a State application for merger, combination, or 
privatization of entities under section 680(b) shall not be considered 
a major revision.
    ``(e) Eligible Entity Application and Community Action Plan.--
Beginning with the first fiscal year following the transition period 
described in section 3 of the Community Services Block Grant 
Modernization Act of 2022, to be eligible to receive a subgrant under 
section 679(a), each eligible entity shall prepare and submit to the 
State an application containing a community action plan or plans 
covering a period of not more than 2 fiscal years. Such application 
shall be submitted in a reasonable and timely manner as required by the 
State. The application shall contain information on the intended 
implementation of the eligible entity's activities, including 
demonstrating how the activities will--
            ``(1) meet needs identified in the most recent 
        comprehensive community needs assessment which has been 
        conducted in the previous 3 years and which may be coordinated 
        with community needs assessments conducted for other programs; 
        and
            ``(2) achieve the purposes of this subtitle through 
        programs, projects, and services.
    ``(f) Transparency.--Each eligible entity shall make available to 
the public on the eligible entity's website, the entity-wide strategic 
plan, community needs assessment, and community action plan.

``SEC. 679. STATE AND LOCAL USES OF FUNDS.

    ``(a) State Subgrants to Eligible Entities and Other 
Organizations.--
            ``(1) In general.--A State that receives a grant under 
        section 675 or 676 shall use not less than 90 percent to make 
        subgrants to eligible entities that enable the entities to 
        implement programs, projects, and services for a purpose 
        described in section 672.
            ``(2) Obligational requirements.--
                    ``(A) Date of obligation.--The State shall obligate 
                the funds for subgrants described in paragraph (1) and 
                make such subgrants available for expenditure by 
                eligible entities not later than the later of--
                            ``(i) the 30th day after the date on which 
                        the State receives from the Secretary a notice 
                        of funding availability for the State's 
                        application under section 678 for a first or 
                        subsequent allocation for a fiscal year; or
                            ``(ii) the first day of the State program 
                        year for which funds are to be expended under 
                        the State application.
                    ``(B) Exception.--If funds are appropriated to 
                carry out this subtitle for less than a full fiscal 
                year, a State may request an exception from the 
                Secretary from the requirement to make subgrants 
                available for expenditure by eligible entities in 
                accordance with subparagraph (A), except that a State 
                may not accumulate more than one fiscal quarter's worth 
                of funding without making such funds available for 
                expenditure by eligible entities.
                    ``(C) Availability.--Funds allocated to eligible 
                entities through subgrants made under paragraph (1) for 
                a fiscal year shall be available for obligation by the 
                eligible entity during that fiscal year and the 
                succeeding fiscal year.
    ``(b) Statewide Activities.--
            ``(1) Use of remainder.--
                    ``(A) In general.--A State that receives a grant 
                under section 675 or 676 shall, after carrying out 
                subsection (a), use the remainder of the grant funds 
                for activities described in the State's application 
                under section 678(b) as described in subparagraph (B) 
                and for administrative expenses subject to the 
                limitations in paragraph (2).
                    ``(B) Training and technical assistance.--After 
                applying subsection (a), the State may use the 
                remaining grant funds for the purposes of--
                            ``(i) providing to eligible entities 
                        training and technical assistance and resources 
                        to respond to statewide or regional conditions 
                        that create economic insecurity, including 
                        emergency conditions;
                            ``(ii) supporting professional development 
                        activities for eligible entities that enhance 
                        the skills of their local personnel (including 
                        members of the board of directors of such 
                        entities) in organizational management, service 
                        delivery, and program development and 
                        management, giving priority to activities 
                        carried out through partnerships of such 
                        entities with institutions of higher education;
                            ``(iii) supporting information and 
                        communication resources for the comprehensive 
                        community needs assessments described in 
                        section 678(e)(1);
                            ``(iv) supporting performance measurement 
                        systems consistent with the requirements of 
                        section 686;
                            ``(v) promoting coordination and 
                        cooperation among eligible entities in the 
                        State, including supporting activities of a 
                        statewide association of community services 
                        network organizations;
                            ``(vi) providing training and technical 
                        assistance and resources to assist eligible 
                        entities in building and using evidence of 
                        effectiveness in reducing poverty conditions, 
                        including entities participating in or 
                        proposing to participate in the Community 
                        Action Innovations Program established under 
                        section 682(a)(2);
                            ``(vii) supporting efforts of eligible 
                        entities to identify and respond to physical 
                        and behavioral health challenges (including 
                        substance use disorders) experienced by low-
                        income individuals, families, and communities;
                            ``(viii) analyzing the distribution of 
                        funds made available under this subtitle within 
                        the State to determine if such funds have been 
                        targeted to the areas of greatest need;
                            ``(ix) providing support to eligible 
                        entities to identify and respond to food 
                        insecurity by assisting them in their efforts--
                                    ``(I) to provide nutritious foods 
                                to low-income individuals, families, 
                                and communities; and
                                    ``(II) to support practices that 
                                promote healthy living; and
                            ``(x) providing support to eligible 
                        entities to address the needs of veterans, 
                        particularly homeless veterans.
            ``(2) Administrative cap.--
                    ``(A) Limitation.--Of the amounts remaining after 
                the required funding for subgrants described under 
                subsection (a)(1), a State shall not spend more than 5 
                percent of its grant under section 675 or 676 for 
                administrative expenses.
                    ``(B) Definition.--In this paragraph, the term 
                `administrative expenses'--
                            ``(i) means the costs incurred by the 
                        State's lead agency for carrying out planning 
                        and management activities, including 
                        monitoring, oversight, and reporting as 
                        required by this Act; and
                            ``(ii) does not include the cost of 
                        activities conducted under paragraph (1)(B) 
                        other than monitoring.
    ``(c) Eligible Entity Use of Funds.--An eligible entity that 
receives a subgrant under subsection (a)(1) shall use the subgrant 
funds to carry out a community action plan that shall include--
            ``(1) programs, projects, and services that provide low-
        income individuals and families with opportunities--
                    ``(A) to identify and develop strategies to remove 
                obstacles and solve problems that block access to 
                opportunity, economic stability, and achievement of 
                self-sufficiency;
                    ``(B) to secure and retain meaningful employment at 
                a family supporting wage;
                    ``(C) to secure an adequate education, improve 
                literacy and language skills, and obtain job-related 
                skills;
                    ``(D) to make effective use of available income and 
                build assets;
                    ``(E) to obtain and maintain adequate housing and a 
                safe and healthy living environment;
                    ``(F) to address health needs (including behavioral 
                health needs) and improve health and well-being;
                    ``(G) to obtain emergency materials or other 
                assistance to meet immediate and urgent needs (which 
                may include needs that arise due to a national or 
                public health emergency), including to meet the 
                collective needs of a community, and prevent greater or 
                more prolonged economic instability;
                    ``(H) to secure and identify assistance related to 
                reducing energy expenses and reducing energy 
                consumption; and
                    ``(I) to achieve greater participation in community 
                affairs; and
            ``(2) activities that develop and maintain--
                    ``(A) partnerships for the purpose of addressing 
                community, economic, and social conditions of poverty 
                and promoting healthy communities, including through 
                prevention and mitigation of trauma, between the 
                eligible entity and--
                            ``(i) State and local public entities;
                            ``(ii) private partners, including 
                        statewide and local businesses, associations of 
                        private employers, and private charitable and 
                        civic organizations;
                            ``(iii) if appropriate, entities and 
                        organizations that support innovative 
                        community-based approaches and research driven 
                        responses to poverty; and
                            ``(iv) institutions of higher education, 
                        including Historically Black Colleges and 
                        Universities, Tribal colleges and universities, 
                        and minority-serving institutions;
                    ``(B) linkages with public and private 
                organizations for coordinating initiatives, services, 
                and investments so as to avoid duplication, and 
                maximize the effective use, of community resources for 
                creating economic opportunity, including developing 
                lasting social and economic assets; and
                    ``(C) new investments in the community to reduce 
                the incidence of poverty, including developing lasting 
                social and economic assets.
    ``(d) Eligibility Criterion.--
            ``(1) Subject to paragraph (2), 200 percent of the poverty 
        line shall be used as a criterion of eligibility for services, 
        assistance, or resources provided directly to individuals or 
        families through the community services block grant program 
        established under this subtitle.
            ``(2) A State or Tribal grantee may establish procedures to 
        ensure that a participant in a program, project, or service 
        funded under this subtitle remains eligible to participate as 
        long as the participant is successfully progressing toward 
        achievement of the goals of the program, project, or service, 
        regardless of the income eligibility criteria used to determine 
        the participant's initial eligibility.

``SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS.

    ``(a) Designation and Redesignation of Eligible Entities in 
Unserved Areas.--
            ``(1) In general.--If any geographic area of a State is 
        not, or ceases to be, served by an eligible entity, the State 
        lead agency may, in consultation with local officials and 
        organizations representing the area, solicit one or more 
        applications and designate a new community action agency to 
        provide programs, projects, and services to the area, that is--
                    ``(A) a community action agency that is a private, 
                nonprofit organization and that is geographically 
                located in an area in reasonable proximity of, or 
                contiguous to, the unserved area and that is already 
                providing similar programs, projects, and services, and 
                that has demonstrated financial capacity to manage and 
                account for Federal funds; or
                    ``(B) if no community action agency described in 
                subparagraph (A) is available, a private, nonprofit 
                organization (which may include an eligible entity) 
                that is geographically located in, or is in reasonable 
                proximity to, the unserved area and that is capable of 
                providing a broad range of programs, projects, and 
                services designed to achieve the purposes of this 
                subtitle as stated in section 672.
            ``(2) Requirement.--In order to serve as the eligible 
        entity for the service area, an entity described in paragraph 
        (1) shall agree to ensure that the governing board of directors 
        of the entity will meet the requirements of subsection (c).
            ``(3) Community.--A service area referred to in this 
        subsection or a portion thereof shall be treated as a community 
        for purposes of this subtitle.
            ``(4) Interim designation.--If no entity that meets the 
        requirements of paragraphs (1) and (2) is available for 
        designation as a permanent eligible entity, the State may 
        designate a private, nonprofit agency (or public agency if a 
        private, nonprofit is not available) on an interim basis for no 
        more than 1 year while the State completes a selection process 
        for a permanent eligible entity that meets the requirements of 
        paragraphs (1) and (2). An agency designated on an interim 
        basis shall be capable of providing programs, projects, and 
        services designed to achieve the purposes of this subtitle as 
        stated in section 672 and have demonstrated financial capacity 
        to manage and account for Federal funds, and may be designated 
        as a permanent eligible entity only if, by the time of 
        permanent designation, it meets all the requirements of 
        paragraphs (1) and (2).
    ``(b) Merger, Combination, or Privatization of Eligible Entities.--
            ``(1) In general.--If an eligible entity receiving subgrant 
        funds makes a determination described in paragraph (2) and 
        notifies the State, the State--
                    ``(A) shall assist in developing a plan for 
                implementing such merger, combination, or 
                privatization, including a budget for transitional 
                costs not to exceed 2 years in duration;
                    ``(B) in the case of a merger or combination, shall 
                provide to the merged or combined entity an amount of 
                funding under section 679(a)(1) equal to the sum of 
                amounts the merged or combined entities each received 
                under section 679(a)(1) immediately before the merger 
                or combination.
            ``(2) Covered merger, combination, or privatization.--This 
        subsection applies when--
                    ``(A) 2 or more eligible entities determine that 
                the geographic areas of a State that they serve can be 
                more effectively served under common control or shared 
                management; or
                    ``(B) a public organization that is an eligible 
                entity determines that the area it serves can be more 
                effectively served if it becomes a private, nonprofit 
                organization.
            ``(3) Plans.--A State may establish requirements for 
        merger, combination, or privatization plans and for a 
        determination that the merged, combined, or privatized entity, 
        or entities, will be capable of conducting a broad range of 
        programs, projects, and services designed to achieve the 
        purposes of this subtitle as stated in section 672 consistent 
        with the comprehensive community needs assessments for the 
        areas served.
            ``(4) State determination.--If a State determines that a 
        merged, combined, or privatized entity or entities will be 
        capable of conducting a broad range of programs, projects, and 
        services as specified in paragraph (3), it shall designate the 
        merged, combined, or privatized entity or entities to serve the 
        area(s) in question without soliciting applications from other 
        entities.
    ``(c) Tripartite Boards.--
            ``(1) Private, nonprofit organizations.--
                    ``(A) Board.--In order for a private, nonprofit 
                organization to be considered to be an eligible entity 
                for purposes of section 673(7), the entity shall be 
                governed by a tripartite board of directors described 
                in subparagraph (C) that fully participates in the 
                development, planning, implementation, oversight, and 
                evaluation of the programs, projects, and services 
                carried out or provided through the subgrant made under 
                section 679(a)(1) and all activities of the entity.
                    ``(B) Selection.--The members of the board referred 
                to in subparagraph (A) shall be selected by the 
                private, nonprofit organization.
                    ``(C) Composition of board.--The board shall be 
                composed so as to assure that--
                            ``(i) \1/3\ of the members of the board are 
                        elected public officials holding office on the 
                        date of selection, or their representatives 
                        (but if an elected public official chooses not 
                        to serve, such official may designate a 
                        representative to serve as the voting board 
                        member);
                            ``(ii) not fewer than \1/3\ of the members 
                        are persons chosen in accordance with 
                        democratic selection procedures adequate to 
                        assure that such members are representative of 
                        low-income individuals and families in the 
                        service area; and if selected to represent a 
                        specific geographic area, such member resides 
                        in that area; and
                            ``(iii) the remainder of the members may be 
                        comprised of representatives from business, 
                        industry, labor, religious, educational, 
                        charitable, or other significant groups and 
                        interests in the community.
                    ``(D) Expertise.--The eligible entity shall ensure 
                that the members of the board are provided resources, 
                which may include contracted services with individuals 
                and organizations with expertise in financial 
                management, accounting, and law, to support the work of 
                the board.
                    ``(E) Compliance with tax-exempt and other 
                requirements.--The board of a private, nonprofit 
                organization shall ensure that the board operates and 
                conducts activities under the subgrant made under 
                section 679(a)(1) in a manner that complies with--
                            ``(i) the requirements for maintaining tax-
                        exempt status under section 501(a) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        501(a)) regarding the governance of charities 
                        under section 501(c)(3) of the Internal Revenue 
                        Code of 1986 (26 U.S.C. 501(c)(3)); and
                            ``(ii) applicable requirements of State 
                        nonprofit law.
            ``(2) Public organizations.--
                    ``(A) Board.--In order for a local public 
                (governmental) entity to be considered to be an 
                eligible entity for purposes of section 673(7), the 
                entity shall ensure that the programs, projects, and 
                services carried out or provided through the subgrant 
                made under section 679(a)(1) are administered under the 
                supervision of a tripartite board described in 
                subparagraph (C) that fully participates in the 
                development, planning, implementation, oversight, and 
                evaluation of such programs, projects, and services.
                    ``(B) Selection.--The members of the board referred 
                to in subparagraph (A) shall be selected by the local 
                public entity.
                    ``(C) Composition of board.--The board shall be 
                composed so as to assure that--
                            ``(i) not more than \1/3\ of the members of 
                        the board are employees or officials, including 
                        elected officials, of the unit of government in 
                        which the organization is located;
                            ``(ii) not fewer than \1/3\ of the members 
                        are persons chosen in accordance with 
                        democratic selection procedures adequate to 
                        assure that such members are representative of 
                        low-income individuals and families in the 
                        service area; and if selected to represent a 
                        specific geographic area, such member resides 
                        in that area; and
                            ``(iii) the remainder of the members may be 
                        comprised of representatives from business, 
                        industry, labor, religious, educational, 
                        charitable, or other significant groups and 
                        interests in the community.
                    ``(D) Expertise.--The eligible entity shall ensure 
                that the members of the board are provided resources, 
                which may include contracted services with individuals 
                and organizations with expertise in financial 
                management, accounting, and law, to support the work of 
                the board.
                    ``(E) Compliance with state requirements and 
                policy.--The board of a public organization shall 
                ensure that the board operates in a manner that 
                complies with State requirements for open meetings, 
                financial transparency, and State open records policy.
            ``(3) Board vacancies.--To fulfill the requirements under 
        this section, an eligible entity shall fill a board vacancy not 
        later than 6 months after such vacancy arises. In the event 
        that an eligible entity is unable to fill a board vacancy in 
        the 6-month period, the entity shall certify to the State that 
        it is making a good faith effort to fill the vacancy and shall 
        receive 1 additional 6-month period to fill such vacancy.
            ``(4) Safeguard.--Neither the Federal Government nor a 
        State or local government shall require a religious 
        organization to alter its form of internal governance, except 
        (for purposes of administration of the community services block 
        grant program) as provided in section 680(c).
    ``(d) Operations and Duties of the Board.--The duties of a board 
described in paragraph (1) or (2) of subsection (c) shall include--
            ``(1) in the case of a board for a private, nonprofit 
        organization that is an eligible entity, having legal and 
        financial responsibility for administering and overseeing the 
        eligible entity, including making proper use of Federal funds;
            ``(2) establishing terms for officers and adopting a code 
        of ethical conduct, including a conflict of interest policy for 
        board members;
            ``(3) participating in each comprehensive community needs 
        assessment, developing and adopting for the corresponding 
        eligible entity an agency-wide strategic plan, and preparing 
        the community action plan for the use of funds under this 
        subtitle;
            ``(4) approving the eligible entity's operating budget;
            ``(5) reviewing all major policies such that--
                    ``(A) for private, nonprofit organizations that are 
                eligible entities, a review includes conducting annual 
                performance reviews of the eligible entity's chief 
                executive officer (or individual holding an equivalent 
                position); and
                    ``(B) for local public entities that are eligible 
                entities, a review includes participating in annual 
                performance reviews of the eligible entity's chief 
                executive officer (or individual holding an equivalent 
                position);
            ``(6) performing oversight of the eligible entity to 
        include--
                    ``(A) conducting assessments of the eligible 
                entity's progress in carrying out programmatic and 
                financial provisions in the community action plan; and
                    ``(B) in the case of any required corrective 
                action, reviewing the eligible entity's plans and 
                progress in remedying identified deficiencies; and
            ``(7) concerning personnel policies and procedures--
                    ``(A) in the case of private, nonprofit 
                organizations that are eligible entities, adopting 
                personnel policies and procedures, including for 
                hiring, annual evaluation, compensation, and 
                termination, of the eligible entity's chief executive 
                officer (or individual holding a similar position); and
                    ``(B) in the case of local public entities that are 
                eligible entities, reviewing personnel policies and 
                procedures, including for hiring, annual evaluation, 
                compensation, and termination, of the eligible entity's 
                chief executive officer (or individual holding a 
                similar position).
    ``(e) Conflict of Interest.--In establishing the conflict of 
interest policy described in subsection (d)(2), a board shall ensure 
that such policy--
            ``(1) requires a board member to recuse themself from any 
        discussion, deliberations, and votes relating to any contract 
        or transaction from which the following would receive a direct 
        financial benefit from the eligible entity:
                    ``(A) such board member;
                    ``(B) the immediate family member of such board 
                member; or
                    ``(C) an organization or a business from which such 
                board member, or an immediate family of such board 
                member, receives a direct financial benefit;
            ``(2) prohibits a board member from receiving compensation 
        for serving on the board from the eligible entity other than 
        for reasonable expenses, except that a board member's receipt 
        of an economic benefit from the eligible entity because such 
        member is eligible to receive benefits and services under this 
        subtitle shall not be considered to be compensation for 
        purposes of this subsection; and
            ``(3) ensures all activities funded under this subtitle are 
        conducted free of personal or family favoritism.

``SEC. 681. OFFICE OF COMMUNITY SERVICES.

    ``(a) Office.--
            ``(1) Establishment.--The Secretary shall establish an 
        Office of Community Services in the Department to carry out the 
        functions of this subtitle.
            ``(2) Director.--The Office shall be headed by a Director 
        (referred to in this section as the `Director').
    ``(b) Grants, Contracts, and Cooperative Agreements.--The 
Secretary, acting through the Director, shall carry out the functions 
of this subtitle through grants, contracts, or cooperative agreements.

``SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RELATED ACTIVITIES.

    ``(a) Activities.--
            ``(1) In general.--The Secretary shall--
                    ``(A) use amounts reserved under section 691(c)(2) 
                for training, technical assistance, planning, 
                assessment, and performance measurement, as described 
                in this section and in sections 684 and 686, to assist 
                States, eligible entities, Tribal grantees, and other 
                community services network organizations in--
                            ``(i) building and using evidence of 
                        effectiveness in reducing poverty conditions, 
                        including through development and dissemination 
                        of information about clearinghouses and other 
                        resources that identify relevant evidence-based 
                        initiatives, for use in connection with the 
                        Community Action Innovations Program 
                        established under paragraph (2);
                            ``(ii) carrying out professional 
                        development activities that expand the capacity 
                        of eligible entities and Tribal grantees;
                            ``(iii) carrying out performance 
                        measurement, data collection, and reporting 
                        activities related to programs, projects, and 
                        services carried out under this subtitle; and
                            ``(iv) correcting programmatic 
                        deficiencies, including such deficiencies of 
                        eligible entities or Tribal grantees; and
                    ``(B) distribute the amounts reserved under section 
                691(c)(2)(A) through grants, contracts, or cooperative 
                agreements with eligible entities, Tribal grantees, and 
                other community services network organizations 
                described in subsection (b) for--
                            ``(i) professional development for key 
                        community services network organization 
                        personnel;
                            ``(ii) activities to improve community 
                        services network organization programs, 
                        financial management, compliance, and 
                        governance practices (including practices 
                        related to performance management information 
                        systems);
                            ``(iii) activities that train community 
                        services network organizations, and their staff 
                        and board members, to effectively address the 
                        needs of low-income families and communities 
                        through place-based strategies that address 
                        local causes and conditions of poverty 
                        (including health inequities) through 
                        coordinated investment and integrated service 
                        delivery; and
                            ``(iv) activities that train community 
                        services network organizations in building and 
                        using evidence of effectiveness in reducing 
                        poverty conditions and that support effective 
                        administration of funds under the Community 
                        Action Innovations Program established under 
                        paragraph (2).
            ``(2) Innovative and evidence-based projects to reduce 
        poverty.--
                    ``(A) In general.--The Secretary shall use amounts 
                reserved under section 691(c)(3) for a Community Action 
                Innovations Program to--
                            ``(i) award grants, contracts, or 
                        cooperative agreements to eligible entities, 
                        Tribal grantees, and other community services 
                        network organizations, including consortia of 
                        such entities, grantees, or organizations to 
                        facilitate innovation and use of evidence-based 
                        practice designed to reduce poverty conditions, 
                        including through whole family approaches that 
                        create opportunities for, and address the needs 
                        of, parents and children together; and
                            ``(ii) disseminate results for public use, 
                        including analysis of best practices in poverty 
                        reduction.
                    ``(B) Projects.--The Secretary shall award funds 
                from its Community Action Innovations Program for 
                projects to enable--
                            ``(i) replication or expansion of 
                        innovative practices with demonstrated evidence 
                        of effectiveness, with priority given to those 
                        with the strongest evidence base as determined 
                        through a broad review of available studies; or
                            ``(ii) testing of innovative practices to 
                        determine their effectiveness, with priority 
                        given to those incorporating rigorous, 
                        independent evaluation to further build the 
                        evidence base.
                    ``(C) Use of funds.--The funds reserved for use 
                under this paragraph may be used by awardees for 
                resources or activities necessary to replicate, expand, 
                or test innovative and evidence-based practices, 
                including costs of training and technical assistance, 
                evaluation, data collection, and technology.
                    ``(D) Expenses.--The funds reserved for use under 
                this paragraph may be used for reasonable expenses of 
                awardees, associated with administration of projects 
                and dissemination of their results.
                    ``(E) Awards and obligation.--The Secretary shall 
                award and obligate funds reserved for projects under 
                this paragraph during the first program year for which 
                the funds are appropriated. Grant funds awarded under 
                this paragraph shall remain available for expenditure 
                by the awardee not later than 36 months after the date 
                of award by the Secretary, unless a longer period of 
                availability is approved by the Secretary based on 
                extenuating circumstances and demonstrated evidence of 
                effectiveness.
    ``(b) Eligible Entities, Tribal Grantees, and Other Community 
Services Network Organizations.--Eligible entities, Tribal grantees, 
and other community services network organizations referred to in 
subsection (a)(1)(B) shall include such entities, grantees, and 
organizations (and their partners, including institutions of higher 
education) with demonstrated expertise in providing training for 
individuals and organizations on methods of effectively addressing the 
needs of low-income families and communities and, if appropriate, 
expertise in Tribal issues.
    ``(c) Training and Technical Assistance Process.--`The process for 
determining the training and technical assistance to be carried out 
under subsection (a)(1) shall--
            ``(1) ensure that the needs of eligible entities, Tribal 
        grantees, and programs relating to improving program quality 
        (including quality of financial management practices) are 
        addressed to the maximum extent feasible; and
            ``(2) incorporate mechanisms to ensure responsiveness to 
        local needs, including an ongoing procedure for obtaining input 
        from the national and State networks of eligible entities.

``SEC. 683. STATE MONITORING OF ELIGIBLE ENTITIES.

    ``In order to determine whether eligible entities receiving 
subgrants under this subtitle meet performance goals, administrative 
standards, financial management requirements, and other requirements 
under this subtitle, the State shall conduct the following reviews of 
eligible entities:
            ``(1) A full onsite review of each eligible entity at least 
        once during each 3-year period.
            ``(2) An onsite review of each newly designated eligible 
        entity immediately after the completion of the first year in 
        which such entity receives funds through the community services 
        block grant program under this subtitle.
            ``(3) Followup reviews, including onsite reviews scheduled 
        in a corrective action plan (including return visits), in a 
        calendar quarter for eligible entities with programs, projects, 
        or services that fail to meet the State's performance criteria, 
        standards, financial management requirements, or other 
        significant requirements established under this subtitle.
            ``(4) Other reviews as appropriate, including reviews of 
        eligible entities with programs, projects, and services that 
        have had other Federal, State, or local grants (other than 
        assistance provided under this subtitle) terminated for cause.
            ``(5) In conducting reviews, including as required by 
        paragraph (1), a State may conduct a remote (including virtual) 
        review of an eligible entity in extraordinary circumstances if 
        approved by the Secretary on a case-by-case basis.

``SEC. 684. ASSESSMENTS; CORRECTIVE ACTION; REDUCTION OR ELIMINATION OF 
              FUNDING.

    ``(a) Assessments of States by the Secretary.--
            ``(1) In general.--The Secretary shall conduct, in not 
        fewer than 1/5 of the States in each fiscal year, assessments 
        (including investigations) of State compliance with this 
        subtitle, including requirements relating to the use of funds 
        received under this subtitle, requirements applicable to State 
        plans submitted under section 678(b), and requirements of 
        section 679(a)(2).
            ``(2) Report to states.--The Secretary shall submit to each 
        State assessed, and make available to the public on the 
        Department's website, a report containing--
                    ``(A) the results of such assessment; and
                    ``(B)(i) recommendations for improvements designed 
                to enhance the benefit and impact of the activities 
                carried out with such funds; and
                    ``(ii) in the event a serious deficiency is found 
                regarding a State's compliance with this subtitle, 
                including requirements relating to the use of funds 
                received under this subtitle, a proposed corrective 
                action plan.
            ``(3) State response.--Not later than 45 days after 
        receiving a report under paragraph (2)--
                    ``(A) a State that received recommendations under 
                paragraph (2)(B)(i) shall submit to the Secretary and 
                make available to the public on the State lead agency's 
                website a plan of action in response to the 
                recommendations; and
                    ``(B) a State that received a proposed corrective 
                action plan under paragraph (2)(B)(ii) shall agree to 
                implement the corrective action plan proposed by the 
                Secretary or propose to the Secretary and make 
                available to the public on the State lead agency's 
                website a different corrective action plan, developed 
                by the State in a timely manner that the State will 
                implement upon approval by the Secretary.
            ``(4) Report to congress.--The Secretary shall submit the 
        results of the assessments annually, as part of the report 
        submitted by the Secretary in accordance with section 
        686(b)(2).
            ``(5) Enforcement.--
                    ``(A) Reduction or elimination of funding.--If the 
                Secretary determines, in a final decision based on an 
                assessment conducted under this section, that a State 
                fails to meet the requirements of this subtitle, the 
                Secretary may, after providing adequate notice and an 
                opportunity for a hearing, initiate proceedings to 
                reduce or eliminate the amount of funding apportioned 
                and allocated to the State as described in section 675 
                or 676, as applicable (and, if necessary, deobligate 
                such funding).
                    ``(B) Direct awards to other entities.--
                            ``(i) Reduction or elimination of state 
                        funding; lack of approved state plan.--If the 
                        Secretary reduces or eliminates funding to a 
                        State under subparagraph (A), the Secretary 
                        shall award funding directly as provided under 
                        clauses (ii) and (iii). If, for a particular 
                        fiscal year, a State plan is not approved by 
                        the Secretary in accordance with section 
                        678(c), the Secretary may award funding 
                        directly as provided under clauses (ii) and 
                        (iii).
                            ``(ii) Direct funding to eligible 
                        entities.--If funding specified in section 
                        679(a)(1) is reduced or eliminated due to the 
                        Secretary's reduction or elimination of funding 
                        under subparagraph (A), or if the Secretary 
                        chooses to award funding directly due to the 
                        lack of an approved State plan as authorized in 
                        clause (i), the Secretary shall award financial 
                        assistance in the amount of such reduced or 
                        eliminated funding, or in the amount the State 
                        would have received for the purposes specified 
                        in section 679(a)(1) had a State plan been 
                        approved, directly (by grant or cooperative 
                        agreement) to affected eligible entities 
                        (provided that any such entity has not had its 
                        funding under this subtitle eliminated or its 
                        designation as an eligible entity terminated by 
                        the State in accordance with subsections (b) 
                        and (c) of section 684) to carry out the 
                        activities described in section 679(c). In 
                        awarding such funding, the Secretary shall 
                        ensure that each such affected eligible entity 
                        receives the same proportionate share of 
                        funding under section 679(a)(1) that it 
                        received in the previous fiscal year.
                            ``(iii) Statewide funds.--If funding 
                        specified in section 679(b) is reduced or 
                        eliminated due to the Secretary's reduction or 
                        elimination of funding under subparagraph (A), 
                        or if the Secretary chooses to award funding 
                        directly due to the lack of an approved State 
                        plan as authorized in clause (i), the Secretary 
                        shall reserve an amount equal to the amount of 
                        such reduced or eliminated funds, or to the 
                        amount the State would have received for the 
                        purposes specified in section 679(b) had a 
                        State plan been approved. The Secretary may use 
                        such amount for such purposes directly or 
                        through a grant or cooperative agreement to 
                        community services network organizations (other 
                        than the State itself).
                            ``(iv) Reduction.--In the case of 
                        expenditure as provided in accordance with this 
                        subparagraph, the Secretary shall reduce 
                        funding the State would otherwise have received 
                        under section 675 or 676 (and, if necessary, 
                        deobligate such funding) for the appropriate 
                        fiscal year by an amount equal to the amount so 
                        expended.
            ``(6) Training and technical assistance.--The Secretary, 
        through the Department's own employees or contractors (rather 
        than under grants, contracts, or cooperative agreements issued 
        under section 682), shall provide training and technical 
        assistance to States with respect to the development or 
        implementation of the States' corrective action plans.
    ``(b) Determination of Eligible Entity Failure To Comply.--
            ``(1) Corrective action by eligible entities.--If the State 
        determines, on the basis of a review pursuant to section 683 or 
        section 685, that there is a serious deficiency regarding an 
        eligible entity's compliance with this subtitle, the State 
        shall inform the entity of the serious deficiencies that shall 
        be corrected and provide technical assistance for the 
        corrective action.
            ``(2) Eligible entity corrective action plans.--An eligible 
        entity that is found to have a serious deficiency under 
        paragraph (1) shall develop, in a timely manner, a corrective 
        action plan that shall be subject to the approval of the State, 
        and that shall specify--
                    ``(A) the deficiencies to be corrected;
                    ``(B) the actions to be taken to correct such 
                deficiencies; and
                    ``(C) the timetable for accomplishment of the 
                corrective actions specified.
            ``(3) Final decision.--If the State determines, on the 
        basis of a final decision in a review conducted under section 
        683, that an eligible entity fails to comply with the terms of 
        a corrective action plan under paragraph (2) relating to 
        correction of a serious deficiency for the eligible entity, the 
        State may, after providing adequate notice and an opportunity 
        for a hearing, initiate proceedings to withhold, reduce, or 
        eliminate the funding provided under section 679(a)(1) to the 
        eligible entity (including, in the case of elimination of 
        funding, terminating the designation under this subtitle of the 
        eligible entity) unless the entity corrects the serious 
        deficiency.
    ``(c) Review.--A State's decision to withhold, reduce, or eliminate 
funding, or to terminate the designation of an eligible entity (or 
eligible entities, as applicable) may be reviewed by the Secretary. 
Upon request by a community services network organization, the 
Secretary shall review such a determination. The review shall be 
completed not later than 60 days after the Secretary receives from the 
State all necessary documentation relating to the determination. The 
State shall submit such documentation within a reasonable time frame 
established by the Secretary.
    ``(d) Direct Assistance.--Whenever the Secretary determines that a 
State has violated the State plan described in section 678(b) 
(including the assurance described in section 678(b)(6)) and the State 
has reduced or eliminated the funding provided under section 679(a) to 
any eligible entity or entities or terminated the eligible entity 
designation of any eligible entity or entities before the completion of 
the State proceedings described in section 678(b)(6) (including, if 
applicable, the proceedings required by subsection (b)) and the 
Secretary's review as required by subsection (c), the Secretary may 
provide financial assistance under this subtitle to the affected 
eligible entity or entities directly until the violation is corrected 
by the State. In such a case, the Secretary may reduce funding the 
State would otherwise have received under section 675 or 676 (and, if 
necessary, deobligate such funding) for the appropriate fiscal year by 
an amount equal to the financial assistance provided directly by the 
Secretary to such eligible entity or entities.

``SEC. 685. STATE AND LOCAL FISCAL CONTROLS AND AUDITS.

    ``(a) Fiscal Controls, Procedures, Audits, and Inspections.--A 
State that receives funds under this subtitle shall--
            ``(1) establish fiscal control and fund accounting 
        procedures necessary to assure the proper disbursal of, and 
        accounting for, Federal funds paid to the State under this 
        subtitle, including procedures for monitoring the funds 
        provided under this subtitle;
            ``(2) ensure that cost and accounting standards of the 
        Office of Management and Budget apply to a subrecipient of the 
        funds under this subtitle;
            ``(3) in accordance with subsections (b) and (c), prepare, 
        not less than once each year, an audit of the expenditures of 
        the State of amounts received under this subtitle; and
            ``(4) make appropriate books, documents, papers, and 
        records available to the Secretary and the Comptroller General 
        of the United States, or any of their duly authorized 
        representatives, for examination, copying, or mechanical 
        reproduction, on or off the premises of the appropriate entity, 
        upon a reasonable request for the items.
    ``(b) Independent Entity.--Subject to subsection (c), each audit 
required by subsection (a)(3) shall be conducted by an entity 
independent of any agency administering activities or services under 
this subtitle and shall be conducted in accordance with generally 
accepted accounting principles.
    ``(c) Single Audit Requirements.--
            ``(1) In general.--Any audit under this subsection shall be 
        conducted in the manner and to the extent provided in chapter 
        75 of title 31, United States Code (commonly known as the 
        `Single Audit Act Amendments of 1984') except in the event a 
        serious financial deficiency is identified.
            ``(2) Serious financial deficiency.--In the event that such 
        a deficiency is identified, the Secretary shall order--
                    ``(A) an audit conducted as described in subsection 
                (a); or
                    ``(B) an audit of each of the accounts involved, in 
                accordance with subsections (b) and (d).
    ``(d) Submission of Copies.--Not later than 30 days after the 
completion of each audit in a State as required in subsection (a)(3), 
the chief executive officer of the State shall submit copies of such 
audit, at no charge, to any eligible entity that was the subject of the 
audit, to the legislature of the State, and to the Secretary.
    ``(e) Repayments.--If the Secretary, after review of the audit, 
finds that a State has not expended an amount of funds in accordance 
with this subtitle, the Secretary is authorized to withhold funds from 
a State under this subtitle until the State remedies the improperly 
expended funds for the original purposes for which the grant funds were 
intended.
    ``(f) Response to Complaints.--The Secretary shall respond in an 
expeditious manner to complaints of a substantial or serious nature 
that a State has failed to use grant funds received under section 675 
or 676 or to carry out State activities under this subtitle in 
accordance with the provisions of this subtitle.
    ``(g) Investigations.--Whenever the Secretary determines that there 
is a pattern of complaints regarding failures described in subsection 
(f) or a complaint of a serious deficiency concerning any State, the 
Secretary shall conduct an investigation of the use of the funds 
received under this subtitle by such State in order to ensure 
compliance with the provisions of this subtitle.

``SEC. 686. ACCOUNTABILITY AND REPORTING REQUIREMENTS.

    ``(a) State Accountability and Reporting Requirements.--
            ``(1) Performance measurement.--
                    ``(A) In general.--Beginning with the first fiscal 
                year following the transition period described in 
                section 3 of the Community Services Block Grant 
                Modernization Act of 2022, each State that receives 
                funds under this subtitle shall participate, and shall 
                ensure that all eligible entities in the State 
                participate, in a results-oriented performance 
                measurement system that the Secretary is satisfied 
                meets the requirements of section 689(b)(1).
                    ``(B) Subcontractors.--The State may elect to have 
                subcontractors of the eligible entities under this 
                subtitle participate in the results-oriented 
                performance measurement system. If the State makes that 
                election, references in this section to eligible 
                entities shall be considered to include such 
                subcontractors.
                    ``(C) Eligible entity reports.--Eligible entities 
                shall provide the results measured by their performance 
                measurement system and such other reports as the State 
                may require.
            ``(2) Annual report.--Each State receiving funds under this 
        subtitle shall annually prepare, and submit to the Secretary by 
        March 31 of each year, a report on the performance of the State 
        and eligible entities in the State, including achievement with 
        respect to performance measurements that were used by community 
        services network organizations in the State for the previous 
        fiscal year. Each State shall also include in the report--
                    ``(A) an accounting of the expenditure of funds 
                received by the State through the community services 
                block grant program, including an accounting of funds 
                spent on administrative or indirect costs by the State 
                and the eligible entities and funds spent by the 
                eligible entities on local programs, projects, and 
                services;
                    ``(B) information on the number and characteristics 
                of participants served under this subtitle in the 
                State, based on data collected from the eligible 
                entities;
                    ``(C) a summary describing the training and 
                technical assistance offered by the State under 
                subparagraph (B) of section 679(b)(1) during the year 
                covered by the report;
                    ``(D) information on the total budget and 
                activities of the eligible entities receiving subgrants 
                from the State under this subtitle, including local and 
                private resources available for a purpose described in 
                section 672; and
                    ``(E) a report on the manner in which the State and 
                eligible entities and other recipients of funds under 
                this subtitle have implemented results-oriented 
                management practices based on their performance 
                measurement systems.
    ``(b) Reporting Requirements.--
            ``(1) Contents.--Not later than September 30 of each year, 
        the Secretary shall, directly or by grant or contract, prepare 
        a report including--
                    ``(A) the information included in the State annual 
                reports under subsection (a)(2) for the preceding 
                fiscal year;
                    ``(B) a report on the performance of the Department 
                in the preceding year regarding carrying out critical 
                roles and responsibilities under this subtitle, 
                including with regard to timeliness in allocating and 
                making appropriated funds available for expenditure to 
                States, approvals or notifications to States concerning 
                State plans and plan revisions, and conducting 
                assessments of States and implementation of State 
                corrective action plans (including status of and 
                follow-up on recommendations made in previous State 
                assessments and corrective action plans);
                    ``(C) a description of the training and technical 
                assistance activities funded by the Secretary under 
                section 682 and the results of those activities; and
                    ``(D) a report on the Community Action Innovations 
                Program authorized under section 682(a)(2), including a 
                description of training and technical assistance funded 
                by the Secretary, the rationale for projects that 
                received support, a description of funded activities 
                and their results, and a summary of ways in which the 
                Program has expanded use of evidence-based practice or 
                contributed to building the evidence base designed to 
                reduce poverty conditions.
            ``(2) Submission.--The Secretary shall submit to the 
        Committee on Education and Labor of the House of 
        Representatives and to the Committee on Health, Education, 
        Labor, and Pensions of the Senate the report described in 
        paragraph (1) and any recommendations the Secretary may have 
        with respect to such report.
            ``(3) Electronic data system for reports to states and 
        eligible entities.--The Secretary, through the Department's own 
        employees or contractors (rather than under grants, contracts, 
        or cooperative agreements issued under section 682), shall 
        provide technical assistance, including support for the 
        development and maintenance of an electronic data system for 
        the reports under this section, to the States and eligible 
        entities to enhance the quality and timeliness of reports 
        submitted under this subtitle. The system shall be coordinated 
        and consistent with the data systems established for other 
        programs of the Department that are managed by eligible 
        entities, including all programs of the Administration for 
        Children and Families or successor administrative units in 
        which the office is located.

``SEC. 686A. GAO STUDY.

    ``Not later than 180 days after the effective date of the section, 
the Comptroller General of the United States shall conduct a study, and 
submit to the Secretary of Health and Human Service, and the committees 
of jurisdiction of the Congress the results of, a study of State usage 
and allocation of funds received under this subtitle over the previous 
10-year period--
            ``(1) to identify the uses, programs, and activities 
        carried out with such funds that had the greatest impact, 
        effectiveness, and results in achieving the purposes for which 
        such funds were provided;
            ``(2) to identify best practices of States in implementing 
        State plans and providing assistance to community action 
        agencies to carry out activities, so that such practices can be 
        used as models for States to follow to carry out this subtitle 
        in the future; and
            ``(3) to determine with respect to such funds--
                    ``(A) the amount of such funds received by each 
                State for a particular fiscal year in such 10-year 
                period to carry out its approved State plan, that was 
                not distributed to community action agencies and other 
                eligible entities, and not obligated for subgrants 
                under this subtitle, during such fiscal year;
                    ``(B) the particular disposition by the State of 
                the funds described in subparagraph (A) received by 
                such State;
                    ``(C) the amount of the funds described in 
                subparagraph (A) received by such State that were 
                retained by such State for allowed purposes (including 
                payment of administrative costs to carry out this 
                subtitle); and
                    ``(D) the amount of the funds described in 
                subparagraph (A) received by such State that were 
                expended by the State for a purpose not authorized 
                under this subtitle and identification of each such 
                purpose.

``SEC. 687. LIMITATIONS ON USE OF FUNDS.

    ``(a) Construction of Facilities.--
            ``(1) Limitations.--Except as provided in paragraphs (2) 
        and (3) of this subsection and in paragraphs (2) and (3) of 
        section 690(a), grants or subgrants made under this subtitle 
        may not be used for the purchase or improvement of land, or the 
        purchase, construction or permanent improvement of any building 
        or other facility. Home repairs needed to ensure the immediate 
        health and safety of eligible low-income individuals, including 
        energy-related or water-related repairs, shall not be 
        considered to be construction or permanent improvement for 
        purposes of this section.
            ``(2) Waiver.--The Secretary may waive the limitation 
        contained in paragraph (1) upon a State request for such a 
        waiver if the Secretary finds that--
                    ``(A) the request describes extraordinary 
                circumstances to justify the purchase or improvement of 
                land, or the purchase, construction, or permanent 
                improvement of any building or other facilities; and
                    ``(B) permitting the waiver will contribute to the 
                ability of the State and eligible entities to carry out 
                a purpose described in section 672 at substantially 
                reduced costs.
            ``(3) Architectural barriers to accessibility.--Grants or 
        subgrants made under this subtitle may be used by eligible 
        entities or Tribal grantees for making material improvements in 
        the accessibility of the physical structures for individuals 
        with disabilities seeking services of such entities.
    ``(b) Political Activities.--
            ``(1) Treatment as a state or local agency.--For purposes 
        of chapter 15 of title 5, United States Code, any entity that 
        assumes responsibility for planning, developing, and 
        coordinating activities under this subtitle and receives 
        assistance under this subtitle shall be deemed to be a State or 
        local agency. For purposes of paragraphs (1) and (2) of section 
        1502(a) of such title, any entity receiving assistance under 
        this subtitle shall be deemed to be a State or local agency.
            ``(2) Prohibitions.--A program, project, or service 
        assisted under this subtitle, and any individual employed by, 
        or assigned to or in, such a program, project, or service 
        (during the hours in which the individual is working on behalf 
        of the program, project, or service) shall not engage in--
                    ``(A) any partisan or nonpartisan political 
                activity or any political activity associated with a 
                candidate, or contending faction or group, in an 
                election for public or party office; or
                    ``(B) any activity to provide voters or prospective 
                voters with transportation to the polls or similar 
                assistance in connection with any election.
            ``(3) Registration.--None of the funds appropriated to 
        carry out this subtitle may be used to conduct voter 
        registration activities. Nothing in this subtitle prohibits 
        entities receiving assistance under this subtitle from making 
        its facilities available during hours of operation for use by 
        nonpartisan organizations to increase the number of eligible 
        citizens who register to vote in elections for Federal office.
    ``(c) Nondiscrimination.--
            ``(1) In general.--No person shall, on the basis of race, 
        color, national origin, or sex, be excluded from participation 
        in, be denied the benefits of, or be subjected to 
        discrimination under, any program, project, or service funded 
        in whole or in part with funds made available under this 
        subtitle. Any prohibition against discrimination on the basis 
        of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 
        et seq.) or with respect to an otherwise qualified individual 
        with a disability as provided in section 504 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794), or title II of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et 
        seq.), shall also apply to any such program, project, or 
        service.
            ``(2) Action of secretary.--Whenever the Secretary 
        determines that a State that has received a payment under this 
        subtitle has failed to comply with paragraph (1) or an 
        applicable regulation, the Secretary shall notify the chief 
        executive officer of the State and shall request that the 
        officer secure compliance. If within a reasonable period of 
        time, not to exceed 60 days, the chief executive officer fails 
        or refuses to secure compliance, the Secretary is authorized 
        to--
                    ``(A) refer the matter to the Attorney General with 
                a recommendation that an appropriate civil action be 
                instituted;
                    ``(B) exercise the powers and functions provided by 
                title VI of the Civil Rights Act of 1964 (42 U.S.C. 
                2000d et seq.), the Age Discrimination Act of 1975 (42 
                U.S.C. 6101 et seq.), section 504 of the Rehabilitation 
                Act of 1973 (29 U.S.C. 794), or title II of the 
                Americans with Disabilities Act of 1990 (42 U.S.C. 
                12131 et seq.), as may be applicable; or
                    ``(C) take such other action as may be provided by 
                law.
            ``(3) Action of attorney general.--When a matter is 
        referred to the Attorney General pursuant to paragraph (2), or 
        whenever the Attorney General has reason to believe that the 
        State is engaged in a pattern or practice of discrimination in 
        violation of the provisions of this subsection, the Attorney 
        General may bring a civil action in any appropriate United 
        States district court for such relief as may be appropriate, 
        including injunctive relief.

``SEC. 688. CHILD SUPPORT SERVICES AND REFERRALS.

    ``During each fiscal year for which an eligible entity receives a 
subgrant under section 679(a), such entity shall--
            ``(1) inform custodial parents or legal guardians that 
        participate in programs, projects, or services carried out or 
        provided under this subtitle about the availability of child 
        support services; and
            ``(2) refer custodial parents or legal guardians to the 
        child support offices of State and local governments.

``SEC. 689. REGULATIONS.

    ``(a) Regulations.--The Secretary shall promulgate regulations 
implementing this subtitle, including regulations regarding--
            ``(1) State plans, including the form and information 
        required for State plans submitted to the Secretary, and 
        criteria for determining whether a State plan revision is to be 
        considered a major revision;
            ``(2) community action plans, including the form and 
        information required for community action plans submitted to 
        States;
            ``(3) State monitoring of eligible entities; and
            ``(4) reports to the Secretary described in section 686.
    ``(b) Guidance.--
            ``(1) Performance measurement.--The Secretary shall issue 
        guidance regarding State and local performance measurement 
        systems. Guidance may include one or more model performance 
        measurement systems, facilitated by the Secretary, that States 
        and eligible entities may use to measure their performance in 
        carrying out the requirements of this subtitle and in achieving 
        the goals of their community action plans.
            ``(2) Comprehensive analysis of poverty conditions.--The 
        Secretary shall issue guidance (including models) for 
        comprehensive community needs assessments described in section 
        678(e)(1). The guidance shall include methods for preparing an 
        analysis of all poverty conditions affecting a community and of 
        local and regional assets for alleviating such conditions.

``SEC. 690. DISCRETIONARY COMMUNITY PROGRAMS.

    ``(a) Grants, Contracts, Arrangements, Loans, and Guarantees.--
            ``(1) In general.--The Secretary shall, from funds 
        appropriated under section 691(b), make grants, loans, or 
        guarantees to States and public agencies and private, nonprofit 
        organizations, or enter into contracts or jointly financed 
        cooperative arrangements with States and public agencies and 
        private, nonprofit organizations (and for-profit organizations, 
        to the extent specified in paragraph (2)(E)) for each of the 
        objectives described in paragraphs (2) through (4).
            ``(2) Community economic development.--
                    ``(A) Economic development activities.--The 
                Secretary shall make grants described in paragraph (1) 
                on a competitive basis to private, nonprofit 
                organizations that are community development 
                corporations to provide technical and financial 
                assistance for economic development activities designed 
                to address the economic needs of low-income individuals 
                and families by creating employment and business 
                development opportunities.
                    ``(B) Consultation.--The Secretary shall exercise 
                the authority provided under subparagraph (A) after 
                consultation with other relevant Federal officials.
                    ``(C) Governing boards.--For a community 
                development corporation to receive funds to carry out 
                this paragraph, the corporation shall be governed by a 
                board that shall--
                            ``(i) consist of residents of the community 
                        and business and civic leaders; and
                            ``(ii) have as a principal purpose 
                        planning, developing, or managing low-income 
                        housing or community development projects.
                    ``(D) Geographic distribution.--In making grants to 
                carry out this paragraph, the Secretary shall take into 
                consideration the geographic distribution of funding 
                among States and the relative proportion of funding 
                among rural and urban areas.
                    ``(E) Reservation.--Of the amounts made available 
                to carry out this paragraph, the Secretary may reserve 
                not more than 1 percent for each fiscal year to make 
                grants to private, nonprofit organizations or to enter 
                into contracts with private, nonprofit, or for-profit 
                organizations to provide technical assistance to aid 
                community development corporations in developing or 
                implementing activities funded to carry out this 
                paragraph and to evaluate activities funded to carry 
                out this paragraph.
            ``(3) Rural community development activities.--The 
        Secretary shall provide the assistance described in paragraph 
        (1) for rural community development activities, which shall 
        include providing--
                    ``(A) grants to private, nonprofit organizations to 
                enable the organizations to provide assistance 
                concerning home repair to rural low-income families and 
                planning and developing low-income rural rental housing 
                units; and
                    ``(B) grants to multi-State, regional, private, 
                nonprofit organizations to enable the organizations to 
                provide training and technical assistance to small, 
                rural communities concerning meeting their community 
                facility needs.
            ``(4) Broadband navigator projects.--
                    ``(A) Navigator project authority.--The Secretary 
                is authorized to provide assistance described in 
                paragraph (1) for broadband navigator projects 
                consistent with the purposes of this Act to address the 
                educational and economic needs of low-income 
                individuals and communities.
                    ``(B) Navigator grants.--The Secretary shall make 
                grants consistent with subparagraph (A) to community 
                action agencies and Tribal grantees to enable them to 
                provide assistance through trained navigators to low-
                income individuals and communities to help facilitate 
                access to affordable high-speed broadband service, 
                internet-enabled devices, digital literacy training, 
                technical support, and other services to meet the 
                broadband and digital needs of such individuals and 
                communities.
                    ``(C) Priority.--Priority in the awarding of such 
                grants under paragraph (4) shall be given to community 
                action agencies and Tribal grantees serving underserved 
                areas with the most significant unmet broadband and 
                digital needs.
                    ``(D) Technical assistance.--Of the amounts made 
                available to carry out broadband navigator projects, 
                the Secretary may reserve up to 5 percent for grant 
                review, technical assistance, and evaluation.
    ``(b) Evaluation.--The Secretary shall require all activities 
receiving assistance under this section to be evaluated for their 
effectiveness. Funding for such evaluations shall be provided as a 
stated percentage of the assistance or through a separate grant or 
contract awarded by the Secretary specifically for the purpose of 
evaluation of a particular activity or group of activities.
    ``(c) Annual Report.--The Secretary shall compile an annual report 
containing a summary of the evaluations required under subsection (b) 
and a listing of all activities assisted under this section. The 
Secretary shall annually submit such report to the chairperson of the 
Committee on Education and Labor of the House of Representatives and 
the chairperson of the Committee on Health, Education, Labor, and 
Pensions of the Senate.

``SEC. 691. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subtitle (excluding section 690)--
            ``(1) $1,000,000,000 for each of fiscal years 2023 through 
        2027; and
            ``(2) such sums as may be necessary for fiscal years 2028 
        through 2032.
    ``(b) Discretionary Programs.--There are authorized to be 
appropriated to carry out section 690 such sums as may be necessary for 
fiscal years 2023 through 2032.
    ``(c) Reservations by the Secretary.--Of the amounts appropriated 
under subsection (a) for each fiscal year, the Secretary shall 
reserve--
            ``(1) \1/2\ of 1 percent for carrying out section 675 
        (relating to grants to territories);
            ``(2) 2 percent for activities authorized in section 
        682(a)(1), of which--
                    ``(A) not less than 50 percent of the amount 
                reserved by the Secretary under this paragraph shall be 
                awarded through grants, contracts, or cooperative 
                agreements to eligible entities, Tribal grantees, and 
                other community services network organizations 
                described in section 682(b), for the purpose of 
                carrying out activities described in section 
                682(a)(1)(B); and
                    ``(B) the remainder of the amount reserved by the 
                Secretary under this paragraph may be awarded through 
                grants, contracts, or cooperative agreements to 
                eligible entities, Tribal grantees, and other community 
                services network organizations described in section 
                682(b), or other entities with demonstrated expertise 
                in providing training for individuals and organizations 
                on methods of effectively addressing the needs of low-
                income families and communities and, if appropriate, 
                expertise in Tribal issues;
            ``(3) 1 percent for the Community Action Innovations 
        Program authorized in section 682(a)(2); and
            ``(4) up to $5,000,000 for each of the fiscal years 2023, 
        2024, and 2025, to carry out section 686(b)(3).

``SEC. 692. REFERENCES.

    ``A reference in any provision of law to the poverty line set forth 
in section 624 or 625 of the Economic Opportunity Act of 1964 shall be 
construed to be a reference to the poverty line defined in section 673 
of this subtitle. Except as otherwise provided, any reference in any 
provision of law to any community action agency designated under title 
II of the Economic Opportunity Act of 1964 shall be construed to be a 
reference to an entity eligible to receive funds under the community 
services block grant program.''.

SEC. 3. TRANSITION PERIOD.

    (a) Transition Period.--The Secretary of Health and Human Services 
shall expeditiously announce a transition period for the implementation 
of any changes in regulations, procedures, guidance, and reporting 
requirements of the Community Services Block Grant Act (42 U.S.C. 9901 
et seq.) as amended by this Act, from the regulations, procedures, 
guidance, and reporting requirements of the Community Services Block 
Grant Act (42 U.S.C. 9901 et seq.) as in effect immediately before the 
date of enactment of this Act.
    (b) Federal Training.--The transition period shall include the 
availability of Federal training for States and eligible entities 
regarding compliance with new requirements under the Community Services 
Block Grant Act (42 U.S.C. 9901 et seq.) as amended by this Act.
    (c) Timing.--The transition period described in this section--
            (1) may not extend later than the date that is 3 months 
        prior to the start of the second fiscal year after the date of 
        enactment of the Community Services Block Grant Modernization 
        Act of 2022;
            (2) notwithstanding (1), may not extend later than two 
        years after the date of enactment of the Community Services 
        Block Grant Modernization Act of 2022 for the issuance of final 
        regulations implementing this subtitle; and
            (3) may require that certain regulations, procedures, and 
        reporting requirements be adopted before other regulations, 
        procedures, or reporting requirements.

SEC. 4. CONFORMING AMENDMENTS.

    Section 306(a)(6)(C)(ii) of the Older Americans Act of 1965 (42 
U.S.C. 3026(a)(6)(C)(ii)) is amended by inserting ``or subsequent 
years'' after ``fiscal year 1982'' and by striking ``section 676B of 
the Community Services Block Grant Act'' and inserting ``section 680(c) 
of the Community Services Block Grant Act''.

            Passed the House of Representatives May 13, 2022.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.