Title: Pathways Out of Poverty Act of 2017
Policy area: Social Welfare

Summary:
Pathways Out of Poverty Act of 2017
This bill establishes and expands various programs related to education, housing, employment, and social welfare.
The Department of Education must award grants to states for the development and implementation of prekindergarten programs.
The Office of Juvenile Justice and Delinquency Prevention within the Department of Justice may award grants to assist communities in addressing juvenile delinquency and gang prevention.
The bill expands:
With respect to housing, the bill:
With respect to employment, the bill:
In addition, the bill:
The bill also establishes:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4074 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 4074

 To strengthen and expand proven anti-poverty programs and initiatives.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 16, 2017

 Ms. Lee (for herself, Ms. Slaughter, Ms. Moore, Ms. Jackson Lee, Mrs. 
 Beatty, Mr. Hastings, Ms. Norton, Mrs. Torres, Mr. Evans, Mr. Payne, 
  Mr. Takano, Mr. Butterfield, Mr. Espaillat, Ms. Jayapal, Mr. Pocan, 
     Mrs. Watson Coleman, Mr. Carson of Indiana, Mr. Conyers, Ms. 
 Schakowsky, Ms. McCollum, Mr. Grijalva, Ms. Speier, Mr. McNerney, Mr. 
  Serrano, and Mr. Ellison) introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
 Committees on House Administration, Oversight and Government Reform, 
     Education and the Workforce, Financial Services, Agriculture, 
     Transportation and Infrastructure, Rules, the Budget, and the 
 Judiciary, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To strengthen and expand proven anti-poverty programs and initiatives.

    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 ``Pathways Out of Poverty Act of 
2017''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                         DIVISION A--EDUCATION

              TITLE I--STRONG START FOR AMERICA'S CHILDREN

 Subtitle A--Access to Voluntary Prekindergarten for Low- and Moderate-
                            Income Families

Sec. 111. Purposes.
Sec. 112. Definitions.
Sec. 113. Program authorization.
Sec. 114. Allotments and reservations of funds.
Sec. 115. State eligibility criteria.
Sec. 116. State applications.
Sec. 117. State use of funds.
Sec. 118. Additional prekindergarten services.
Sec. 119. Performance measures and targets.
Sec. 120. Matching requirements.
Sec. 121. Eligible local entity applications.
Sec. 122. Required subgrant activities.
Sec. 123. Report and evaluation.
Sec. 124. Prohibition of required participation or use of funds for 
                            assessments.
Sec. 125. Coordination with Head Start programs.
Sec. 126. Technical assistance in program administration.
Sec. 127. Authorization of appropriations.
             Subtitle B--Prekindergarten Development Grants

Sec. 151. Prekindergarten development grants.
   TITLE II--YOUTH PROMISE/FEDERAL COORDINATION OF LOCAL AND TRIBAL 
                JUVENILE JUSTICE INFORMATION AND EFFORTS

Sec. 201. PROMISE Advisory Panel.
Sec. 202. Geographic assessment of resource allocation.
                       TITLE III--PROMISE GRANTS

Sec. 301. Purposes.
Sec. 302. Definitions.
           Subtitle A--PROMISE Assessment and Planning Grants

Sec. 310. PROMISE Assessment and Planning grants authorized.
Sec. 311. PROMISE Coordinating Councils.
Sec. 312. Needs and strengths assessment.
Sec. 313. PROMISE Plan components.
Sec. 314. Authorization of appropriations.
               Subtitle B--PROMISE Implementation Grants

Sec. 320. PROMISE Implementation grants authorized.
Sec. 321. PROMISE Implementation grant application requirements.
Sec. 322. Grant award guidelines.
Sec. 323. Reports.
Sec. 324. Authorization of appropriations.
              Subtitle C--General PROMISE Grant Provisions

Sec. 330. Nonsupplanting clause.
Sec. 331. Grant application review panel.
Sec. 332. Evaluation of PROMISE grant programs.
          TITLE IV--PELL GRANT PRESERVATION AND EXPANSION ACT

Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. References.
Sec. 404. Funding Federal Pell Grants through mandatory funding.
Sec. 405. Restoring Federal Pell Grant eligibility for borrower 
                            defense.
Sec. 406. Federal Pell Grant eligibility for DREAMer students.
Sec. 407. Repeal of suspension of eligibility under the Higher 
                            Education Act of 1965 for grants, loans, 
                            and work assistance for drug-related 
                            offenses.
Sec. 408. Extending Federal Pell Grant eligibility of certain short-
                            term programs.
Sec. 409. Providing Federal Pell grants for Iraq and Afghanistan 
                            veteran's dependents.
Sec. 410. Increasing support for working students by 35 percent.
Sec. 411. Increasing the Federal Pell Grant auto-zero threshold.
Sec. 412. Raising the total semesters of Federal Pell Grant 
                            eligibility.
Sec. 413. Conforming amendments.
Sec. 414. Effective date.
                          DIVISION B--HOUSING

                TITLE V--COMMON SENSE HOUSING INVESTMENT

Sec. 501. Congressional findings.
Sec. 502. Replacement of mortgage interest deduction with mortgage 
                            interest credit.
Sec. 503. Deduction allowed for interest and taxes relating to land for 
                            dwelling purposes owned or leased by 
                            cooperative housing corporations.
Sec. 504. Use of mortgage interest savings to increase low-income 
                            housing tax credit.
Sec. 505. Use of mortgage interest savings for affordable housing 
                            programs.
       TITLE VI--LOW-INCOME HOUSING TAX CREDIT FOR HOMELESS YOUTH

Sec. 601. Students who were homeless youths or homeless veterans 
                            permitted to occupy low-income housing 
                            units.
Sec. 602. Renters tax credit.
                         DIVISION C--NUTRITION

  TITLE VII--IMPROVING TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM

Sec. 701. References.
Sec. 702. State plans required to address whether and how States will 
                            provide assistance to neediest geographic 
                            areas.
Sec. 703. Funding of the TANF program.
Sec. 704. Work requirements.
Sec. 705. Work rules.
Sec. 706. Prohibition on imposing limit of less than 60 months on 
                            duration of assistance.
Sec. 707. Response of TANF program to economic recessions.
Sec. 708. Requirement that States use merit-based system in 
                            administration of TANF programs.
Sec. 709. Ban on using Federal TANF funds to replace State and local 
                            spending that does not meet the definition 
                            of qualified State expenditures.
Sec. 710. TANF assistance to meet basic family economic needs.
Sec. 711. State plans and reports on child poverty.
Sec. 712. Requirement that States adopt standards and procedures to 
                            address domestic and sexual violence among 
                            TANF recipients.
Sec. 713. Child care entitlement.
Sec. 714. Child support enforcement.
Sec. 715. State option to extend eligibility for assistance to children 
                            through age 21; prohibition on considering 
                            financial aid tied to education of child in 
                            determining eligibility for, or amount of 
                            assistance; prohibition on imposing 
                            additional requirements based on 
                            educational enrollment of child.
Sec. 716. Elimination of certain other bars to TANF assistance.
Sec. 717. Effective date.
   TITLE VIII--EMPLOYMENT ADVANCEMENT, RETENTION, AND NAVIGATION ACT

Sec. 811. Focus on employment.
Sec. 812. Modification relating to the Contingency Fund.
Sec. 813. Training for in-demand jobs.
Sec. 814. Effective date.
TITLE IX--RESTORING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS FUNDING 
              CUTS INSTITUTED IN FARM BILL (HEAT-AND-EAT)

Sec. 901. Restoration of standard utility allowances based on the 
                            receipt of energy assistance payments.
                 TITLE X--HELPING HUNGRY STUDENTS LEARN

Sec. 1001. Findings.
Sec. 1002. School Lunch Program.
Sec. 1003. School Breakfast Program.
Sec. 1004. Summer Electronic Benefits Transfer for Children program.
Sec. 1005. Weekends and holidays without hunger.
         TITLE XI--FOOD ASSISTANCE TO IMPROVE REINTEGRATION ACT

Sec. 1101. Repeal of denial of benefits.
                     DIVISION D--LABOR/JOB TRAINING

   TITLE XII--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK

               Subtitle A--Supporting Unemployed Workers

Sec. 1201. Short title.
 Part I--Extension of Emergency Unemployment Compensation and Certain 
  Extended Benefits Provisions, and Establishment of Self-Employment 
                           Assistance Program

Sec. 1211. Extension of Emergency Unemployment Compensation program.
Sec. 1212. Temporary extension of extended benefit provisions.
Sec. 1213. Additional extended unemployment benefits under the Railroad 
                            Unemployment Insurance Act.
                   Part II--Reemployment NOW Program

Sec. 1221. Establishment of Reemployment NOW program.
Sec. 1222. Distribution of funds.
Sec. 1223. State plan.
Sec. 1224. Bridge to Work program.
Sec. 1225. Wage insurance.
Sec. 1226. Enhanced reemployment strategies.
Sec. 1227. Self-employment programs.
Sec. 1228. Additional innovative programs.
Sec. 1229. Guidance and additional requirements.
Sec. 1230. Report of information and evaluations to Congress and the 
                            public.
Sec. 1231. State.
               Part III--Short-Time Compensation Program

Sec. 1241. Temporary financing of short-time compensation payments in 
                            States with programs in law.
Sec. 1242. Temporary financing of short-time compensation agreements.
Sec. 1243. Grants for short-time compensation programs.
Sec. 1244. Assistance and guidance in implementing programs.
Sec. 1245. Reports.
          Subtitle B--Long-Term Unemployed Hiring Preferences

Sec. 1251. Long-term unemployed workers work opportunity tax credits.
                   Subtitle C--Pathways Back to Work

Sec. 1261. Short title.
Sec. 1262. Authorization of appropriations.
Sec. 1263. Availability of funds.
Sec. 1264. Subsidized employment for unemployed, low-income adults.
Sec. 1265. Summer employment and year-round employment opportunities 
                            for low-income youth.
Sec. 1266. Work-based employment strategies of demonstrated 
                            effectiveness.
Sec. 1267. General requirements.
Sec. 1268. Definitions.
Subtitle D--Prohibition of Discrimination in Employment on the Basis of 
                  an Individual's Status as Unemployed

Sec. 1271. Short title.
Sec. 1272. Findings and purpose.
Sec. 1273. Definitions.
Sec. 1274. Prohibited acts.
Sec. 1275. Enforcement.
Sec. 1276. Federal and State immunity.
Sec. 1277. Relationship to other laws.
Sec. 1278. Severability.
Sec. 1279. Effective date.
                    TITLE XIII--LIVING AMERICAN WAGE

Sec. 1301. Short title.
Sec. 1302. Minimum wage increases.
Sec. 1303. Tipped employees.
Sec. 1304. Newly hired employees who are less than 20 years old.
Sec. 1305. Publication of notice.
Sec. 1306. Promoting economic self-sufficiency for individuals with 
                            disabilities.
Sec. 1307. General effective date.
                DIVISION E--ANTI-POVERTY TAX PROVISIONS

                 TITLE XIV--CHILD TAX CREDIT PERMANENCY

Sec. 1401. Inflation adjustment of the child tax credit.
                   TITLE XV--EARNED INCOME TAX CREDIT

Sec. 1501. Expansion of Earned Income Credit.
      TITLE XVI--CHILD CARE ACCESS AND REFUNDABILITY EXPANSION ACT

Sec. 1601. Credit for dependent care expenses.
Sec. 1602. Amendments to the Child Care and Development Block Grant Act 
                            of 1990.
                       DIVISION I--MISCELLANEOUS

                    TITLE I--POVERTY IMPACT TRIGGER

Sec. 1701. Certain poverty impact legislation subject to point of 
                            order.
Sec. 1702. Congressional Budget Office Poverty Impact Division.
Sec. 1703. Exercise of rulemaking powers.
Sec. 1704. Effective date.
   TITLE II--HALF IN TEN ACT TO CREATE A NATIONAL STRATEGY TO REDUCE 
                                POVERTY

Sec. 1801. Findings.
Sec. 1802. Definitions.
Sec. 1803. Establishment of the Federal Interagency Working Group on 
                            Reducing Poverty.
Sec. 1804. Appointment and responsibilities of the Director.
Sec. 1805. Consultation.
Sec. 1806. Reports to Congress and the public.

                         DIVISION A--EDUCATION

              TITLE I--STRONG START FOR AMERICA'S CHILDREN

 Subtitle A--Access to Voluntary Prekindergarten for Low- and Moderate-
                            Income Families

SEC. 111. PURPOSES.

    The purposes of this subtitle are to--
            (1) establish a Federal-State partnership to provide access 
        to high-quality public prekindergarten programs for all 
        children from low-income and moderate-income families to ensure 
        that they enter kindergarten prepared for success;
            (2) broaden participation in such programs to include 
        children from additional middle-class families; and
            (3) promote access to high-quality kindergarten, and high-
        quality early childhood education programs and settings for 
        children.

SEC. 112. DEFINITIONS.

    In this subtitle:
            (1) Child with a disability.--The term ``child with a 
        disability'' has the meaning given the term in section 602 of 
        the Individuals with Disabilities Education Act (20 U.S.C. 
        1401).
            (2) Comprehensive early learning assessment system.--The 
        term ``comprehensive early learning assessment system''--
                    (A) means a coordinated and comprehensive system of 
                multiple assessments, each of which is valid and 
                reliable for its specified purpose and for the 
                population with which it will be used, that--
                            (i) organizes information about the process 
                        and context of young children's learning and 
                        development to help early childhood educators 
                        make informed instructional and programmatic 
                        decisions; and
                            (ii) conforms to the recommendations of the 
                        National Research Council reports on early 
                        childhood; and
                    (B) includes, at a minimum--
                            (i) child screening measures;
                            (ii) child formative assessments;
                            (iii) measures of environmental quality; 
                        and
                            (iv) measures of the quality of adult-child 
                        interactions.
            (3) Dual language learner.--The term ``dual language 
        learner'' means an individual who is limited English 
        proficient.
            (4) Early childhood education program.--The term ``early 
        childhood education program'' has the meaning given the term 
        under section 103 of the Higher Education Act of 1965 (20 
        U.S.C. 1003).
            (5) Elementary school.--The term ``elementary school'' has 
        the meaning given the term in section 8101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (6) Eligibility determination date.--The term ``eligibility 
        determination date'' means the date used to determine 
        eligibility for public elementary school in the community in 
        which the eligible local entity involved is located.
            (7) Eligible local entity.--The term ``eligible local 
        entity'' means--
                    (A) a local educational agency, including--
                            (i) a charter school or a charter 
                        management organization that acts as a local 
                        educational agency; or
                            (ii) an educational service agency in 
                        partnership with a local educational agency;
                    (B) an entity that carries out an early childhood 
                education program; or
                    (C) a consortium of entities described in 
                subparagraph (A) or (B).
            (8) Full-day.--The term ``full-day'' means a day that is--
                    (A) equivalent to a full school day at the public 
                elementary schools in a State; and
                    (B) not less than 5 hours a day.
            (9) High-quality prekindergarten program.--The term ``high-
        quality prekindergarten program'' means a prekindergarten 
        program supported by an eligible local entity that includes, at 
        a minimum, the following elements based on nationally 
        recognized standards:
                    (A) Serves children who--
                            (i) are age 4 or children who are age 3 or 
                        4, by the eligibility determination date 
                        (including children who turn age 5 while 
                        attending the program); or
                            (ii) have attained the legal age for State-
                        funded prekindergarten.
                    (B) Requires high qualifications for staff, 
                including that teachers meet the requirements of one of 
                the following clauses:
                            (i) The teacher has a bachelor's degree in 
                        early childhood education or a related field 
                        with coursework that demonstrates competence in 
                        early childhood education.
                            (ii) The teacher--
                                    (I) has a bachelor's degree in any 
                                field;
                                    (II) has demonstrated knowledge of 
                                early childhood education by passing a 
                                State-approved assessment in early 
                                childhood education;
                                    (III) while employed as a teacher 
                                in the prekindergarten program, is 
                                engaged in ongoing professional 
                                development in early childhood 
                                education for not less than 2 years; 
                                and
                                    (IV) not more than 3 years after 
                                starting employment as a teacher in the 
                                prekindergarten program, enrolls in and 
                                completes a State-approved educator 
                                preparation program in which the 
                                teacher receives training and support 
                                in early childhood education.
                            (iii) The teacher has a bachelor's degree 
                        with a credential, license, or endorsement that 
                        demonstrates competence in early childhood 
                        education.
                    (C) Maintains an evidence-based maximum class size.
                    (D) Maintains an evidence-based child to 
                instructional staff ratio.
                    (E) Offers a full-day program.
                    (F) Provides developmentally appropriate, evidence-
                based curricula and learning environments that are 
                aligned with the State's early learning and development 
                standards described in section 115(1).
                    (G) Offers instructional staff salaries comparable 
                to kindergarten through grade 12 teaching staff.
                    (H) Provides for ongoing monitoring and program 
                evaluation to ensure continuous improvement.
                    (I) Offers accessible comprehensive services for 
                children that include, at a minimum--
                            (i) screenings for vision, dental, health 
                        (including mental health), and development and 
                        referrals, and assistance obtaining services, 
                        when appropriate;
                            (ii) family engagement opportunities that 
                        take into account home language, such as parent 
                        conferences (including parent input about their 
                        child's development) and support services, such 
                        as parent education;
                            (iii) nutrition services, including 
                        nutritious meals and snack options aligned with 
                        requirements set by the most recent Child and 
                        Adult Care Food Program guidelines promulgated 
                        by the Department of Agriculture as well as 
                        regular, age-appropriate, nutrition education 
                        for children and their families;
                            (iv) programs coordinated with local 
                        educational agencies and entities providing 
                        programs authorized under section 619 and part 
                        C of the Individuals with Disabilities 
                        Education Act (20 U.S.C. 1419 and 1431 et 
                        seq.);
                            (v) physical activity programs aligned with 
                        evidence-based guidelines, such as those 
                        recommended by the Institute of Medicine, and 
                        which take into account and accommodate 
                        children with disabilities;
                            (vi) additional support services, as 
                        appropriate, based on the findings of the needs 
                        analysis as described in section 120; and
                            (vii) on-site coordination, to the maximum 
                        extent feasible.
                    (J) Provides high-quality professional development 
                for all staff, including regular in-classroom 
                observation for teachers and teacher assistants by 
                individuals trained in such observation.
                    (K) Meets the education performance standards in 
                effect under section 641A(a)(1)(B) of the Head Start 
                Act (42 U.S.C. 9836a(a)(1)(B)).
                    (L) Maintains evidence-based health and safety 
                standards.
            (10) Governor.--The term ``Governor'' means the chief 
        executive officer of a State.
            (11) Homeless child.--The term ``homeless child'' means a 
        child or youth described in section 725(2) of the McKinney-
        Vento Homeless Assistance Act (42 U.S.C. 11434a(2)).
            (12) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            (13) Indian tribe; tribal organization.--The terms ``Indian 
        tribe'' and ``tribal organization'' have the meanings given the 
        terms in 658P of the Child Care and Development Block Grant of 
        1990 (42 U.S.C. 9858n).
            (14) Limited english proficient.--The term ``limited 
        English proficient'' has the meaning given the term in section 
        637 of the Head Start Act (42 U.S.C. 9832).
            (15) Local educational agency; state educational agency; 
        educational service agency.--The terms ``local educational 
        agency'', ``State educational agency'', and ``educational 
        service agency'' have the meanings given the terms in section 
        8101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            (16) Migratory child.--The term ``migratory child'' has the 
        meaning given the term in section 1309 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6399).
            (17) Outlying area.--The term ``outlying area'' means each 
        of the United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the Republic 
        of Palau.
            (18) Poverty line.--The term ``poverty line'' means the 
        official poverty line (as defined by the Office of Management 
        and Budget)--
                    (A) adjusted to reflect the percentage change in 
                the Consumer Price Index for All Urban Consumers 
                published by the Bureau of Labor Statistics of the 
                Department of Labor for the most recent 12-month period 
                or other interval for which the data are available; and
                    (B) applicable to a family of the size involved.
            (19) Secondary school.--The term ``secondary school'' has 
        the meaning given the term in section 8101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (20) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (21) State.--Except as otherwise provided in this subtitle, 
        the term ``State'' means each of the 50 States, the District of 
        Columbia, the Commonwealth of Puerto Rico, and each of the 
        outlying areas.
            (22) State advisory council on early childhood education 
        and care.--The term ``State Advisory Council on Early Childhood 
        Education and Care'' means the State Advisory Council on Early 
        Childhood Education and Care established under section 642B(b) 
        of the Head Start Act (42 U.S.C. 9837b(b)).

SEC. 113. PROGRAM AUTHORIZATION.

    From amounts made available to carry out this subtitle, the 
Secretary, in consultation with the Secretary of Health and Human 
Services, shall award grants to States to implement high-quality 
prekindergarten programs, consistent with the purposes of this subtitle 
described in section 111. For each fiscal year, the funds provided 
under a grant by a State shall equal the allotment determined for the 
State under section 114.

SEC. 114. ALLOTMENTS AND RESERVATIONS OF FUNDS.

    (a) Reservation.--From the amount made available each fiscal year 
to carry out this subtitle, the Secretary shall--
            (1) reserve not less than 1 percent and not more than 2 
        percent for payments to Indian tribes and tribal organizations;
            (2) reserve \1/2\ of 1 percent for the outlying areas to be 
        distributed among the outlying areas on the basis of their 
        relative need, as determined by the Secretary in accordance 
        with the purposes of this subtitle;
            (3) reserve \1/2\ of 1 percent for eligible local entities 
        that serve children in families who are engaged in migrant or 
        seasonal agricultural labor; and
            (4) reserve not more than 1 percent or $30,000,000, 
        whichever amount is less, for national activities, including 
        administration, technical assistance, and evaluation.
    (b) Allotments.--
            (1) In general.--From the amount made available each fiscal 
        year to carry out this subtitle and not reserved under 
        subsection (a), the Secretary shall make allotments to States 
        in accordance with paragraph (2) that have submitted an 
        approved application.
            (2) Allotment amount.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary shall allot the amount made available under 
                paragraph (1) for a fiscal year among the States in 
                proportion to the number of children who are age 4 who 
                reside within the State and are from families with 
                incomes at or below 200 percent of the poverty line for 
                the most recent year for which satisfactory data are 
                available, compared to the number of such children who 
                reside in all such States for that fiscal year.
                    (B) Minimum allotment amount.--No State receiving 
                an allotment under subparagraph (A) may receive less 
                than \1/2\ of 1 percent of the total amount allotted 
                under such subparagraph.
            (3) Reallotment and carry over.--
                    (A) In general.--If one or more States do not 
                receive an allotment under this subsection for any 
                fiscal year, the Secretary may use the amount of the 
                allotment for that State or States, in such amounts as 
                the Secretary determines appropriate, for either or 
                both of the following:
                            (i) To increase the allotments of States 
                        with approved applications for the fiscal year, 
                        consistent with subparagraph (B).
                            (ii) To carry over the funds to the next 
                        fiscal year.
                    (B) Reallotment.--In increasing allotments under 
                subparagraph (A)(i), the Secretary shall allot to each 
                State with an approved application an amount that bears 
                the same relationship to the total amount to be 
                allotted under subparagraph (A)(i), as the amount the 
                State received under paragraph (2) for that fiscal year 
                bears to the amount that all States received under 
                paragraph (2) for that fiscal year.
            (4) State.--For purposes of this subsection, the term 
        ``State'' means each of the 50 States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
    (c) Flexibility.--The Secretary may make minimal adjustments to 
allotments under this subsection, which shall neither lead to a 
significant increase or decrease in a State's allotment determined 
under subsection (b), based on a set of factors, such as the level of 
program participation and the estimated cost of the activities 
specified in the State plan under section 116(a)(2).

SEC. 115. STATE ELIGIBILITY CRITERIA.

    A State is eligible to receive a grant under this subtitle if the 
State demonstrates to the Secretary that the State--
            (1) has established or will establish early learning and 
        development standards that describe what children from birth to 
        kindergarten entry should know and be able to do, are 
        universally designed and developmentally, culturally, and 
        linguistically appropriate, are aligned with the State's 
        challenging academic content standards and challenging student 
        academic achievement standards, as adopted under section 
        1111(b)(1) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6311(b)(1)), and cover the essential domains of 
        school readiness, which address--
                    (A) physical well-being and motor development;
                    (B) social and emotional development;
                    (C) approaches to learning, including creative arts 
                expression;
                    (D) developmentally appropriate oral and written 
                language and literacy development; and
                    (E) cognition and general knowledge, including 
                early mathematics and early scientific development;
            (2) has the ability or will develop the ability to link 
        prekindergarten data with its elementary school and secondary 
        school data for the purpose of collecting longitudinal 
        information for all children participating in the State's high-
        quality prekindergarten program and any other federally funded 
        early childhood program that will remain with the child through 
        the child's public education through grade 12;
            (3) offers State-funded kindergarten for children who are 
        eligible children for that service in the State; and
            (4) has established a State Advisory Council on Early 
        Childhood Education and Care.

SEC. 116. STATE APPLICATIONS.

    (a) In General.--To receive a grant under this subtitle, the 
Governor of a State, in consultation with the Indian tribes and tribal 
organizations in the State, if any, shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require. At a minimum, each such 
application shall include--
            (1) an assurance that the State--
                    (A) will coordinate with and continue to 
                participate in the programs authorized under section 
                619 and part C of the Individuals with Disabilities 
                Education Act (20 U.S.C. 1419 and 1431 et seq.), the 
                Child Care and Development Block Grant Act of 1990 (42 
                U.S.C. 9858 et seq.), and the maternal, infant, and 
                early childhood home visiting programs funded under 
                section 511 of the Social Security Act (42 U.S.C. 711) 
                for the duration of the grant;
                    (B) will designate a State-level entity (such as an 
                agency or joint interagency office), selected by the 
                Governor, for the administration of the grant, which 
                shall coordinate and consult with the State educational 
                agency if the entity is not the State educational 
                agency; and
                    (C) will establish, or certify the existence of, 
                program standards for all State prekindergarten 
                programs consistent with the definition of a high-
                quality prekindergarten program under section 112;
            (2) a description of the State's plan to--
                    (A) use funds received under this subtitle and the 
                State's matching funds to provide high-quality 
                prekindergarten programs, in accordance with section 
                117(d), with open enrollment for all children in the 
                State who--
                            (i) are described in section 112(9)(A); and
                            (ii) are from families with incomes at or 
                        below 200 percent of the poverty line;
                    (B) develop or enhance a system for monitoring 
                eligible local entities that are receiving funds under 
                this subtitle for compliance with quality standards 
                developed by the State and to provide program 
                improvement support, which may be accomplished through 
                the use of a State-developed system for quality rating 
                and improvement;
                    (C) if applicable, expand participation in the 
                State's high-quality prekindergarten programs to 
                children from families with incomes above 200 percent 
                of the poverty line;
                    (D) carry out the State's comprehensive early 
                learning assessment system, or how the State plans to 
                develop such a system, ensuring that any assessments 
                are culturally, developmentally, and age-appropriate 
                and consistent with the recommendations from the study 
                on Developmental Outcomes and Assessments for Young 
                Children by the National Academy of Sciences, 
                consistent with section 649(j) of the Head Start Act 
                (42 U.S.C. 9844);
                    (E) develop, implement, and make publicly available 
                the performance measures and targets described in 
                section 119;
                    (F) increase the number of teachers with bachelor's 
                degrees in early childhood education, or with 
                bachelor's degrees in another closely related field and 
                specialized training in early childhood education, 
                including how institutions of higher education will 
                support increasing the number of teachers with such 
                degrees and training, including through the use of 
                assessments of prior learning, knowledge, and skills to 
                facilitate and expedite attainment of such degrees;
                    (G) coordinate and integrate the activities funded 
                under this subtitle with Federal, State, and local 
                services and programs that support early childhood 
                education and care, including programs supported under 
                this subtitle, the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6301 et seq.), the Individuals 
                with Disabilities Education Act (20 U.S.C. 1400 et 
                seq.), the Head Start Act (42 U.S.C. 9831 et seq.), the 
                Community Services Block Grant Act (42 U.S.C. 9901 et 
                seq.), the Child Care and Development Block Grant Act 
                of 1990 (42 U.S.C. 9858 et seq.), the temporary 
                assistance for needy families program under part A of 
                title IV of the Social Security Act (42 U.S.C. 601 et 
                seq.), the State incentive grant program under section 
                14006 of the American Recovery and Reinvestment Act of 
                2009 (Public Law 111-5), federally funded early 
                literacy programs, the maternal, infant, and early 
                childhood home visiting programs funded under section 
                511 of the Social Security Act (42 U.S.C. 711), health 
                improvements to child care funded under title XIX of 
                the Social Security Act (42 U.S.C. 1396 et seq.), the 
                program under subtitle B of title VII of the McKinney-
                Vento Homeless Assistance Act (42 U.S.C. 11431 et 
                seq.), the Investing In Innovation program under 
                section 14007 of the American Recovery and Reinvestment 
                Act of 2009 (Public Law 111-5), programs authorized 
                under part E of title IV of the Social Security Act (42 
                U.S.C. 670 et seq.), the Fostering Connections to 
                Success and Increasing Adoptions Act of 2008 (Public 
                Law 110-351), and any other Federal, State, or local 
                early childhood education programs used in the State;
                    (H) award subgrants to eligible local entities, and 
                in awarding such subgrants, facilitate a delivery 
                system of high-quality prekindergarten programs that 
                includes diverse providers, such as providers in 
                community-based, public school, and private settings, 
                and consider the system's impact on options for 
                families;
                    (I) in the case of a State that does not have a 
                funding mechanism for subgranting funds to implement 
                high-quality prekindergarten, use objective criteria in 
                awarding subgrants to eligible local entities that will 
                implement high-quality prekindergarten programs, 
                including actions the State will take to ensure that 
                eligible local entities will coordinate with local 
                educational agencies or other early learning providers, 
                as appropriate, to carry out activities to provide 
                children served under this subtitle with a successful 
                transition from preschool into kindergarten, which 
                activities shall include--
                            (i) aligning curricular objectives and 
                        instruction;
                            (ii) providing staff professional 
                        development, including opportunities for joint-
                        professional development on early learning and 
                        kindergarten through grade 3 standards, 
                        assessments, and curricula;
                            (iii) coordinating family engagement and 
                        support services; and
                            (iv) encouraging the shared use of 
                        facilities and transportation, as appropriate;
                    (J) use the State early learning and development 
                standards described in section 115(1) to address the 
                needs of dual language learners, including by 
                incorporating benchmarks related to English language 
                development;
                    (K) identify barriers, and propose solutions to 
                overcome such barriers, which may include seeking 
                assistance under section 126, in the State to 
                effectively use and integrate Federal, State, and local 
                public funds and private funds for early childhood 
                education that are available to the State on the date 
                on which the application is submitted;
                    (L) support articulation agreements (as defined in 
                section 486A of the Higher Education Act of 1965 (20 
                U.S.C. 1093a)) between public 2-year and public 4-year 
                institutions of higher education in the State for early 
                childhood teacher preparation programs and related 
                fields;
                    (M) ensure that the higher education programs in 
                the State have the capacity to prepare a workforce to 
                provide high-quality prekindergarten programs;
                    (N) support workforce development, including State 
                and local policies that support prekindergarten 
                instructional staff's ability to earn a degree, 
                certification, or other specializations or 
                qualifications, including policies on leave, 
                substitutes, and child care services, including non-
                traditional hour child care;
                    (O) hold eligible local entities accountable for 
                use of funds;
                    (P) ensure that the State's early learning and 
                development standards are integrated into the 
                instructional and programmatic practices of high-
                quality prekindergarten programs and related programs 
                and services, such as those provided to children under 
                section 619 and part C of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1419 and 1431 et 
                seq.);
                    (Q) increase the number of children in the State 
                who are enrolled in high-quality kindergarten programs 
                and carry out a strategy to implement such a plan;
                    (R) coordinate the State's activities supported by 
                grants under this subtitle with activities in State 
                plans required under the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6301 et seq.), the 
                Individuals with Disabilities Education Act (20 U.S.C. 
                1400 et seq.), the Head Start Act (42 U.S.C. 9831 et 
                seq.), the Child Care and Development Block Grant Act 
                of 1990 (42 U.S.C. 9858 et seq.), and the Adult 
                Education and Family Literacy Act (20 U.S.C. 9201 et 
                seq.);
                    (S) encourage eligible local entities to coordinate 
                with community-based learning resources, such as 
                libraries, arts and arts education programs, 
                appropriate media programs, family literacy programs, 
                public parks and recreation programs, museums, 
                nutrition education programs, and programs supported by 
                the Corporation for National and Community Service;
                    (T) work with eligible local entities, in 
                consultation with elementary school principals, to 
                ensure that high-quality prekindergarten programs have 
                sufficient facilities to meet the needs of children 
                eligible for prekindergarten;
                    (U) support local early childhood coordinating 
                entities, such as local early childhood councils, if 
                applicable, and help such entities to coordinate early 
                childhood education programs with high-quality 
                prekindergarten programs to ensure effective and 
                efficient delivery of early childhood education program 
                services;
                    (V) ensure that the provision of high-quality 
                prekindergarten programs will not lead to a diminution 
                of services for infants and toddlers or disrupt the 
                care of infants and toddlers in the geographic area 
                served by the eligible local entity, which may include 
                demonstrating that the State will direct funds to 
                provide high-quality early childhood education and care 
                to infants and toddlers in accordance with section 
                117(d); and
                    (W) ensure that all high-quality prekindergarten 
                programs the State supports under this Act will conduct 
                criminal history background checks that meet the 
                requirements of subsection (b) on employees and 
                applicants for employment with direct access to 
                children; and
            (3) an inventory of the State's higher education programs 
        that prepare individuals for work in a high-quality 
        prekindergarten program, including--
                    (A) certification programs;
                    (B) associate degree programs;
                    (C) baccalaureate degree programs;
                    (D) master's degree programs; and
                    (E) other programs that lead to a specialization in 
                early childhood education, or a related field.
    (b) Criminal History Background Checks.--
            (1) In general.--The criminal history background checks 
        required under subsection (a)(2)(W) shall include--
                    (A) a search of the State criminal registry or 
                repository in the State in which the employee resides 
                and previously resided;
                    (B) a search of the State-based child abuse and 
                neglect registries and databases in the State in which 
                the employee resides and previously resided;
                    (C) a Federal Bureau of Investigation fingerprint 
                check using the Integrated Automated Fingerprint 
                Identification System; and
                    (D) a search of the National Sex Offender Registry 
                established under section 119 of the Adam Walsh Child 
                Protection and Safety Act of 2006 (42 U.S.C. 16919).
            (2) Prohibition of employment.--To be eligible to receive a 
        grant under this subtitle, a State shall prohibit an individual 
        with direct access to children from employment with a program 
        supported with grant funds under this subtitle if the 
        individual has been convicted of a violent felony or any 
        violent or sexual crime against a minor, as defined by the 
        State.
            (3) Updated checks.--To be eligible to receive a grant 
        under this subtitle, each criminal history background check 
        conducted on an employee as required under subsection (a)(2)(W) 
        shall be periodically repeated or updated in accordance with 
        State law.
            (4) Appeal process.--To be eligible to receive a grant 
        under this subtitle, a State shall provide an individual with a 
        timely process by which to--
                    (A) appeal the results of a criminal history 
                background check conducted under this section to 
                challenge the accuracy or completeness of the 
                information produced by such background check; and
                    (B) seek appropriate relief for any final 
                employment decision based on materially inaccurate or 
                incomplete information produced by such background 
                check.
    (c) Development of Application.--In developing an application for a 
grant under this subtitle, a State shall consult with the State 
Advisory Council on Early Childhood Education and Care and incorporate 
such Council's recommendations, where applicable.
    (d) Construction.--Nothing in this section shall be construed to 
alter or otherwise affect the rights, remedies, and procedures afforded 
school employees, local educational agency employees, and the employees 
of early childhood education programs under Federal, State, or local 
laws (including applicable regulations or court orders) or under the 
terms of collective bargaining agreements, memoranda of understanding, 
or other agreements between such employees and their employers.

SEC. 117. STATE USE OF FUNDS.

    (a) Reservation for Quality Improvement Activities.--
            (1) In general.--A State that receives a grant under this 
        subtitle may reserve for, not more than the first 4 years such 
        State receives such a grant, not more than 20 percent of the 
        grant funds for quality improvement activities if such 
        activities support the elements of high-quality prekindergarten 
        programs. Such quality improvement activities may include 
        supporting teachers and principals in a State's high-quality 
        prekindergarten program, licensed or regulated child care, or 
        Head Start programs to enable such teachers to earn a 
        baccalaureate degree in early childhood education, or closely 
        related field, through activities which may include--
                    (A) expanding or establishing scholarships, 
                counseling, and compensation initiatives to cover the 
                cost of tuition, fees, materials, transportation, and 
                release time for such teachers; and
                    (B) providing ongoing professional development 
                opportunities, including regular in-classroom 
                observation by individuals trained in such observation, 
                for such teachers, principals, and teachers assistants 
                to enable such teachers, principals, and teachers 
                assistants to carry out the elements of high-quality 
                prekindergarten programs, which may include activities 
                that address--
                            (i) promoting children's development across 
                        the essential domains of early learning and 
                        development;
                            (ii) developmentally appropriate teacher-
                        child interaction;
                            (iii) effective family engagement;
                            (iv) providing culturally competent 
                        instruction;
                            (v) working with a diversity of children 
                        and families, including children with special 
                        needs and dual language learners;
                            (vi) childhood nutrition and physical 
                        education programs; and
                            (vii) supporting the implementation of 
                        evidence-based curricula.
            (2) Not subject to matching.--The amount reserved under 
        paragraph (1) shall not be subject to the matching requirements 
        under section 120.
            (3) Coordination.--A State that reserves an amount under 
        paragraph (1) shall coordinate the use of such amount with 
        activities funded under section 658G of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858e) and the 
        Head Start Act (42 U.S.C. 9831 et seq.).
            (4) Construction.--A State may not use funds reserved under 
        this subsection to meet the requirement described in section 
        112(9)(G).
    (b) Subgrants for High-Quality Prekindergarten Programs.--A State 
that receives a grant under this subtitle shall award subgrants of 
sufficient size to eligible local entities to enable such eligible 
local entities to implement high-quality prekindergarten programs for 
children who--
            (1) are described in section 112(9)(A);
            (2) reside within the State; and
            (3) are from families with incomes at or below 200 percent 
        of the poverty line.
    (c) Administration.--A State that receives a grant under this 
subtitle may reserve not more than 1 percent of the grant funds for 
administration of the grant, and may use part of that reservation for 
the maintenance of the State Advisory Council on Early Childhood 
Education and Care.
    (d) Early Childhood Education and Care Programs for Infants and 
Toddlers.--
            (1) Use of allotment for infants and toddlers.--An eligible 
        State may apply to use, and the appropriate Secretary may grant 
        permission for the State to use, not more than 15 percent of 
        the funds made available through a grant received under this 
        subtitle to award subgrants to early childhood education 
        programs to provide, consistent with the State's early learning 
        and development guidelines for infants and toddlers, high-
        quality early childhood education and care to infants and 
        toddlers who reside within the State and are from families with 
        incomes at or below 200 percent of the poverty line.
            (2) Application.--To be eligible to use the grant funds as 
        described in paragraph (1), the State shall submit an 
        application to the appropriate Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require. Such application shall, at a minimum, include a 
        description of how the State will--
                    (A) designate a lead agency which shall administer 
                such funds;
                    (B) ensure that such lead agency, in coordination 
                with the State's Advisory Council on Early Childhood 
                Education and Care, will collaborate with other 
                agencies in administering programs supported under this 
                subsection for infants and toddlers in order to obtain 
                input about the appropriate use of such funds and 
                ensure coordination with programs for infants and 
                toddlers funded under the Child Care and Development 
                Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), the 
                Head Start Act (42 U.S.C. 9831 et seq.) (including any 
                Early Learning Quality Partnerships established in the 
                State under section 645B of the Head Start Act, as 
                added by section 202), the Race to the Top and Early 
                Learning Challenge program under section 14006 of 
                Public Law 111-5 (123 Stat. 283), the maternal, infant, 
                and early childhood home visiting programs funded under 
                section 511 of the Social Security Act (42 U.S.C. 711), 
                and part C of the Individuals with Disabilities 
                Education Act (20 U.S.C. 1431 et seq.);
                    (C) ensure that infants and toddlers who benefit 
                from amounts made available under this subsection will 
                transition to and have the opportunity to participate 
                in a high-quality prekindergarten program supported 
                under this subtitle;
                    (D) in awarding subgrants, give preference to early 
                childhood education programs that have a plan to 
                increase services to children with special needs, 
                including children with developmental delays or 
                disabilities, children who are dual language learners, 
                homeless children, children who are in foster care, 
                children of migrant families, children eligible for 
                free or reduced-price lunch under the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 1751 et 
                seq.), or children in the child welfare system; and
                    (E) give priority to activities carried out under 
                this subsection that will increase access to high-
                quality early childhood education programs for infants 
                and toddlers in local areas with significant 
                concentrations of low-income families that do not 
                currently benefit from such programs.
            (3) Eligible providers.--A State may use the grant funds as 
        described in paragraph (1) to serve infants and toddlers only 
        by working with early childhood education program providers 
        that--
                    (A) offer full-day, full-year care, or otherwise 
                meet the needs of working families; and
                    (B) meet high-quality standards, such as--
                            (i) Early Head Start program performance 
                        standards under the Head Start Act (42 U.S.C. 
                        9831 et seq.); or
                            (ii) high-quality, demonstrated, valid, and 
                        reliable program standards that have been 
                        established through a national entity that 
                        accredits early childhood education programs.
            (4) Federal administration.--
                    (A) In general.--The Secretary of Education shall 
                bear responsibility for obligating and disbursing funds 
                to support activities under this subsection and 
                ensuring compliance with applicable laws and 
                administrative requirements, subject to paragraph (3).
                    (B) Interagency agreement.--The Secretary of 
                Education and the Secretary of Health and Human 
                Services shall jointly administer activities supported 
                under this subsection on such terms as such Secretaries 
                shall set forth in an interagency agreement. The 
                Secretary of Health and Human Services shall be 
                responsible for any final approval of a State's 
                application under this subsection that addresses the 
                use of funds designated for services to infants and 
                toddlers.
                    (C) Appropriate secretary.--In this subsection, the 
                term ``appropriate Secretary'' used with respect to a 
                function, means the Secretary designated for that 
                function under the interagency agreement.

SEC. 118. ADDITIONAL PREKINDERGARTEN SERVICES.

    (a) Prekindergarten for 3-Year-Olds.--Each State that certifies to 
the Secretary that the State provides universally available, voluntary, 
high-quality prekindergarten programs for 4-year-old children who 
reside within the State and are from families with incomes at or below 
200 percent of the poverty line may use the State's allocation under 
section 114(b) to provide high-quality prekindergarten programs for 3-
year-old children who reside within the State and are from families 
with incomes at or below 200 percent of the poverty line.
    (b) Subgrants.--In each State that has a city, county, or local 
educational agency that provides universally available high-quality 
prekindergarten programs for 4-year-old children who reside within the 
State and are from families with incomes at or below 200 percent of the 
poverty line the State may use amounts from the State's allocation 
under section 114(b) to award subgrants to eligible local entities to 
enable such eligible local entities to provide high-quality 
prekindergarten programs for 3-year-old children who are from families 
with incomes at or below 200 percent of the poverty line and who reside 
in such city, county or local educational agency.

SEC. 119. PERFORMANCE MEASURES AND TARGETS.

    (a) In General.--A State that receives a grant under this subtitle 
shall develop, implement, and make publicly available the performance 
measures and targets for the activities carried out with grant funds. 
Such measures shall, at a minimum, track the State's progress in--
            (1) increasing school readiness across all domains for all 
        categories of children, as described in section 123(b)(7), 
        including children with disabilities and dual language 
        learners;
            (2) narrowing school readiness gaps between minority and 
        nonminority children, and low-income children and more 
        advantaged children, in preparation for kindergarten entry;
            (3) decreasing placement for children in elementary school 
        in special education programs and services as described in part 
        B of the Individuals with Disabilities Education Act (20 U.S.C. 
        1411 et seq.);
            (4) increasing the number of programs meeting the criteria 
        for high-quality prekindergarten programs, as defined by the 
        State and in accordance with section 112;
            (5) decreasing the need for grade-to-grade retention in 
        elementary school;
            (6) if applicable, ensuring that high-quality 
        prekindergarten programs do not experience instances of chronic 
        absence among the children who participate in such programs;
            (7) increasing the number and percentage of low-income 
        children in high-quality early childhood education programs 
        that receive financial support through funds provided under 
        this subtitle; and
            (8) providing high-quality nutrition services, nutrition 
        education, physical activity, and obesity prevention programs.
    (b) Prohibition of Misdiagnosis Practices.--A State shall not, in 
order to meet the performance measures and targets described in 
subsection (a), engage in practices or policies that will lead to the 
misdiagnosis or under-diagnosis of disabilities or developmental delays 
among children who are served through programs supported under this 
subtitle.

SEC. 120. MATCHING REQUIREMENTS.

    (a) Matching Funds.--
            (1) In general.--Except as provided in paragraph (2), a 
        State that receives a grant under this subtitle shall provide 
        matching funds from non-Federal sources, as described in 
        subsection (c), in an amount equal to--
                    (A) 10 percent of the Federal funds provided under 
                the grant in the first year of grant administration;
                    (B) 10 percent of the Federal funds provided under 
                the grant in the second year of grant administration;
                    (C) 20 percent of the Federal funds provided under 
                the grant in the third year of grant administration;
                    (D) 30 percent of the Federal funds provided under 
                the grant in the fourth year of grant administration;
                    (E) 40 percent of the Federal funds provided under 
                the grant in the fifth year of grant administration;
                    (F) 50 percent of the Federal funds provided under 
                the grant in the sixth year of grant administration;
                    (G) 75 percent of the Federal funds provided under 
                the grant in the seventh year of grant administration; 
                and
                    (H) 100 percent of the Federal funds provided under 
                the grant in the eighth and following years of grant 
                administration.
            (2) Reduced match rate.--A State that meets the 
        requirements under subsection (b) may provide matching funds 
        from non-Federal sources at a reduced rate. The full reduced 
        matching funds rate shall be in an amount equal to--
                    (A) 5 percent of the Federal funds provided under 
                the grant in the first year of grant administration;
                    (B) 5 percent of the Federal funds provided under 
                the grant in the second year of grant administration;
                    (C) 10 percent of the Federal funds provided under 
                the grant in the third year of grant administration;
                    (D) 20 percent of the Federal funds provided under 
                the grant in the fourth year of grant administration;
                    (E) 30 percent of the Federal funds provided under 
                the grant in the fifth year of grant administration;
                    (F) 40 percent of the Federal funds provided under 
                the grant in the sixth year of grant administration;
                    (G) 50 percent of the Federal funds provided under 
                the grant in the seventh year of grant administration;
                    (H) 75 percent of the Federal funds provided under 
                the grant in the eighth year of grant administration; 
                and
                    (I) 100 percent of the Federal funds provided under 
                the grant in the ninth and following years of the grant 
                administration.
    (b) Reduced Match Rate Eligibility.--A State that receives a grant 
under this subtitle may provide matching funds from non-Federal sources 
at the full reduced rate under subsection (a)(2) if the State--
            (1)(A) offers enrollment in high-quality prekindergarten 
        programs to not less than half of children in the State who 
        are--
                    (i) age 4 on the eligibility determination date; 
                and
                    (ii) from families with incomes at or below 200 
                percent of the poverty line; and
            (B) has a plan for continuing to expand access to high-
        quality prekindergarten programs for such children in the 
        State; and
            (2) has a plan to expand access to high-quality 
        prekindergarten programs to children from moderate income 
        families whose income exceeds 200 percent of the poverty line.
    (c) Non-Federal Resources.--
            (1) In cash.--A State shall provide the matching funds 
        under this section in cash.
            (2) Funds to be considered as matching funds.--A State may 
        include, as part of the State's matching funds under this 
        section, not more than 10 percent of the amount of State funds 
        designated for State prekindergarten programs or to supplement 
        Head Start programs under the Head Start Act (42 U.S.C. 9831 et 
        seq.) as of the date of enactment of this Act, but may not 
        include any funds that are attributed as matching funds, as 
        part of a non-Federal share, or as a maintenance of effort 
        requirement, for any other Federal program.
    (d) Maintenance of Effort.--
            (1) In general.--If a State reduces its combined fiscal 
        effort per student or the aggregate expenditures within the 
        State to support early childhood education programs for any 
        fiscal year that a State receives a grant authorized under this 
        subtitle relative to the previous fiscal year, the Secretary 
        shall reduce support for such State under this subtitle by the 
        same amount as the decline in State and local effort for such 
        fiscal year.
            (2) Waiver.--The Secretary may waive the requirements of 
        paragraph (1) if--
                    (A) the Secretary determines that a waiver would be 
                appropriate due to a precipitous decline in the 
                financial resources of a State as a result of 
                unforeseen economic hardship or a natural disaster that 
                has necessitated across-the-board reductions in State 
                services, including early childhood education programs; 
                or
                    (B) due to the circumstances of a State requiring 
                reductions in specific programs, including early 
                childhood education, if the State presents to the 
                Secretary a justification and demonstration why other 
                programs could not be reduced and how early childhood 
                programs in the State will not be disproportionately 
                harmed by such State action.
    (e) Supplement Not Supplant.--Grant funds received under this title 
shall be used to supplement and not supplant other Federal, State, and 
local public funds expended on public prekindergarten programs in the 
State.

SEC. 121. ELIGIBLE LOCAL ENTITY APPLICATIONS.

    (a) In General.--An eligible local entity desiring to receive a 
subgrant under section 117(b) shall submit an application to the State, 
at such time, in such manner, and containing such information as the 
State may reasonably require.
    (b) Contents.--Each application submitted under subsection (a) 
shall include the following:
            (1) Parent and family engagement.--A description of how the 
        eligible local entity plans to engage the parents and families 
        of the children such entity serves and ensure that parents and 
        families of eligible children are aware of the services 
        provided by the eligible local entity, which shall include a 
        plan to--
                    (A) carry out meaningful parent and family 
                engagement, through the implementation and replication 
                of evidence-based or promising practices and 
                strategies, which shall be coordinated with parent and 
                family engagement strategies supported under the 
                Individuals with Disabilities Education Act (20 U.S.C. 
                1400 et seq.) and part A of title I and title V of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6311 et seq. and 7201 et seq.), if applicable, 
                to--
                            (i) provide parents and family members with 
                        the skills and opportunities necessary to 
                        become full partners in their children's 
                        education, particularly the families of dual 
                        language learners and children with 
                        disabilities;
                            (ii) improve child development; and
                            (iii) strengthen relationships among 
                        prekindergarten staff and parents and family 
                        members; and
                    (B) perform community outreach to encourage 
                families with eligible children to participate in the 
                eligible local entity's high-quality prekindergarten 
                program, including--
                            (i) homeless children;
                            (ii) dual language learners;
                            (iii) children in foster care;
                            (iv) children with disabilities; and
                            (v) migrant children.
            (2) Coordination and alignment.--A description of how the 
        eligible local entity will--
                    (A) coordinate, if applicable, the eligible local 
                entity's activities with--
                            (i) Head Start agencies (consistent with 
                        section 642(e)(5) of the Head Start Act (42 
                        U.S.C. 9837(e)(5))), if the local entity is not 
                        a Head Start agency;
                            (ii) local educational agencies, if the 
                        eligible local entity is not a local 
                        educational agency;
                            (iii) providers of services under part C of 
                        the Individuals with Disabilities Education Act 
                        (20 U.S.C. 1431 et seq.);
                            (iv) programs carried out under section 619 
                        of the Individuals with Disabilities Education 
                        Act (20 U.S.C. 1419); and
                            (v) if feasible, other entities carrying 
                        out early childhood education programs and 
                        services within the area served by the local 
                        educational agency;
                    (B) if applicable, develop and implement a 
                systematic procedure for transferring, with parental 
                consent, early childhood education program records for 
                each participating child to the school in which such 
                child will enroll in kindergarten;
                    (C) develop a plan to promote continuity of 
                developmentally appropriate instructional programs and 
                shared expectations with local elementary schools for 
                children's learning and development as children 
                transition to kindergarten;
                    (D) organize, if feasible, and participate in joint 
                training, when available, including transition-related 
                training for school staff and early childhood education 
                program staff;
                    (E) establish comprehensive transition policies and 
                procedures, with applicable elementary schools and 
                principals, for the children served by the eligible 
                local entity that support the school readiness of 
                children transitioning to kindergarten;
                    (F) conduct outreach to parents, families, and 
                elementary school teachers and principals to discuss 
                the educational, developmental, and other needs of 
                children entering kindergarten;
                    (G) help parents, including parents of children who 
                are dual language learners, understand and engage with 
                the instructional and other services provided by the 
                kindergarten in which such child will enroll after 
                participation in a high-quality prekindergarten 
                program; and
                    (H) develop and implement a system to increase 
                program participation of underserved populations of 
                eligible children, especially homeless children, 
                children eligible for a free or reduced-price lunch 
                under the Richard B. Russell National School Lunch Act 
                (42 U.S.C. 1751 et seq.), parents of children who are 
                dual language learners, and parents of children with 
                disabilities.
            (3) Protections for special populations.--A description of 
        how the eligible local entity will meet the diverse needs of 
        children in the community to be served, including children with 
        disabilities, children whose native language is not English, 
        children with other special needs, children in the State foster 
        care system, and homeless children. Such description shall 
        demonstrate, at a minimum, how the entity plans to--
                    (A) ensure the eligible local entity's high-quality 
                prekindergarten program is accessible and appropriate 
                for children with disabilities and dual language 
                learners;
                    (B) establish effective procedures for providing 
                necessary early intervening services to children with 
                disabilities prior to an eligibility determination by 
                the State or local agency responsible for providing 
                services under section 619 or part C of the Individuals 
                with Disabilities Education Act (20 U.S.C. 1419 and 
                1431 et seq.);
                    (C) establish effective procedures for timely 
                referral of children with disabilities to the State or 
                local agency described in subparagraph (B);
                    (D) ensure that the eligible local entity's high-
                quality prekindergarten program works with appropriate 
                entities to address the elimination of barriers to 
                immediate and continuous enrollment for homeless 
                children; and
                    (E) ensure access to and continuity of enrollment 
                in high-quality prekindergarten programs for migratory 
                children, if applicable, and homeless children, 
                including through policies and procedures that 
                require--
                            (i) outreach to identify migratory children 
                        and homeless children;
                            (ii) immediate enrollment, including 
                        enrollment during the period of time when 
                        documents typically required for enrollment, 
                        including health and immunization records, 
                        proof of eligibility, and other documents, are 
                        obtained;
                            (iii) continuous enrollment and 
                        participation in the same high-quality 
                        prekindergarten program for a child, even if 
                        the child moves out of the program's service 
                        area, if that enrollment and participation are 
                        in the child's best interest, including by 
                        providing transportation when necessary;
                            (iv) professional development for high-
                        quality prekindergarten program staff regarding 
                        migratory children and homelessness among 
                        families with young children; and
                            (v) in serving homeless children, 
                        collaboration with local educational agency 
                        liaisons designated under section 
                        722(g)(1)(J)(ii) of the McKinney-Vento Homeless 
                        Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)), 
                        and local homeless service providers.
            (4) Accessible comprehensive services.--A description of 
        how the eligible local entity plans to provide accessible 
        comprehensive services, described in section 112(9)(I), to the 
        children the eligible local entity serves. Such description 
        shall provide information on how the entity will--
                    (A) conduct a data-driven community assessment in 
                coordination with members of the community, including 
                parents and community organizations, or use a recently 
                conducted data-driven assessment, which--
                            (i) may involve an external partner with 
                        expertise in conducting such needs analysis, to 
                        determine the most appropriate social or other 
                        support services to offer through the eligible 
                        local entity's on-site comprehensive services 
                        to children who participate in high-quality 
                        prekindergarten programs; and
                            (ii) shall consider the resources available 
                        at the school, local educational agency, and 
                        community levels to address the needs of the 
                        community and improve child outcomes; and
                    (B) have a coordinated system to facilitate the 
                screening, referral, and provision of services related 
                to health, nutrition, mental health, disability, and 
                family support for children served by the eligible 
                local entity.
            (5) Workforce.--A description of how the eligible local 
        entity plans to support the instructional staff of such 
        entity's high-quality prekindergarten program, which shall, at 
        a minimum, include a plan to provide high-quality professional 
        development, or facilitate the provision of high-quality 
        professional development through an external partner with 
        expertise and a demonstrated track record of success, based on 
        scientifically valid research, that will improve the knowledge 
        and skills of high-quality prekindergarten teachers and staff 
        through activities, which may include--
                    (A) acquiring content knowledge and learning 
                teaching strategies needed to provide effective 
                instruction that addresses the State's early learning 
                and development standards described under section 
                115(1);
                    (B) enabling high-quality prekindergarten teachers 
                and staff to pursue specialized training in early 
                childhood development;
                    (C) enabling high-quality prekindergarten teachers 
                and staff to acquire the knowledge and skills to 
                provide instruction and appropriate language and 
                support services to increase the English language 
                skills of dual language learners;
                    (D) enabling high-quality prekindergarten teachers 
                and staff to acquire the knowledge and skills to 
                provide developmentally appropriate instruction for 
                children with disabilities;
                    (E) promoting classroom management;
                    (F) providing high-quality induction and support 
                for incoming high-quality prekindergarten teachers and 
                staff in high-quality prekindergarten programs, 
                including through the use of mentoring programs that 
                have a demonstrated track record of success;
                    (G) promoting the acquisition of relevant 
                credentials, including in ways that support career 
                advancement through career ladders; and
                    (H) enabling high-quality prekindergarten teachers 
                and staff to acquire the knowledge and skills to 
                provide culturally competent instruction for children 
                from diverse backgrounds.

SEC. 122. REQUIRED SUBGRANT ACTIVITIES.

    (a) In General.--An eligible local entity that receives a subgrant 
under section 117(b) shall use subgrant funds to implement the elements 
of a high-quality prekindergarten program for the children described in 
section 117(b).
    (b) Coordination.--
            (1) Local educational agency partnerships with local early 
        childhood education programs.--A local educational agency that 
        receives a subgrant under this subtitle shall provide an 
        assurance that the local educational agency will enter into 
        strong partnerships with local early childhood education 
        programs, including programs supported through the Head Start 
        Act (42 U.S.C. 9831 et seq.).
            (2) Eligible local entities that are not local educational 
        agencies.--An eligible local entity that is not a local 
        educational agency that receives a subgrant under this subtitle 
        shall provide an assurance that such entity will enter into 
        strong partnerships with local educational agencies.

SEC. 123. REPORT AND EVALUATION.

    (a) In General.--Each State that receives a grant under this 
subtitle shall prepare an annual report, in such manner and containing 
such information as the Secretary may reasonably require.
    (b) Contents.--A report prepared under subsection (a) shall 
contain, at a minimum--
            (1) a description of the manner in which the State has used 
        the funds made available through the grant and a report of the 
        expenditures made with the funds;
            (2) a summary of the State's progress toward providing 
        access to high-quality prekindergarten programs for children 
        eligible for such services, as determined by the State, from 
        families with incomes at or below 200 percent of the poverty 
        line, including the percentage of funds spent on children from 
        families with incomes--
                    (A) at or below 100 percent of the poverty line;
                    (B) at or below between 101 and 150 percent of the 
                poverty line; and
                    (C) at or below between 151 and 200 percent of the 
                poverty line;
            (3) an evaluation of the State's progress toward achieving 
        the State's performance targets, described in section 119;
            (4) data on the number of high-quality prekindergarten 
        program teachers and staff in the State (including teacher 
        turnover rates and teacher compensation levels compared to 
        teachers in elementary schools and secondary schools), 
        according to the setting in which such teachers and staff work 
        (which settings shall include, at a minimum, Head Start 
        programs, public prekindergarten, and child care programs) who 
        received training or education during the period of the grant 
        and remained in the early childhood education program field;
            (5) data on the kindergarten readiness of children in the 
        State;
            (6) a description of the State's progress in overcoming 
        barriers to the effective use of Federal, State, and local 
        public funds and private funds, for early childhood education;
            (7) the number and percentage of children in the State 
        participating in high-quality prekindergarten programs, 
        disaggregated by race, ethnicity, family income, child age, 
        disability, whether the children are homeless children, and 
        whether the children are dual language learners;
            (8) data on the availability, affordability, and quality of 
        infant and toddler care in the State;
            (9) the number of operational minutes per week and per year 
        for each eligible local entity that receives a subgrant;
            (10) the local educational agency and ZIP code in which 
        each eligible local entity that receives a subgrant operates;
            (11) information, for each of the local educational 
        agencies described in paragraph (10), on the percentage of the 
        costs of the public early childhood education programs that is 
        funded from Federal, from State, and from local sources, 
        including the percentages from specific funding programs;
            (12) data on the number and percentage of children in the 
        State participating in public kindergarten programs, 
        disaggregated by race, family income, child age, disability, 
        whether the children are homeless children, and whether the 
        children are dual language learners, with information on 
        whether such programs are offered--
                    (A) for a full-day; and
                    (B) at no cost to families; and
            (13) data on the number of individuals in the State who are 
        supported with scholarships, if applicable, to meet the 
        baccalaureate degree requirement for high-quality 
        prekindergarten programs, as defined in section 112.
    (c) Submission.--A State shall submit the annual report prepared 
under subsection (a), at the end of each fiscal year, to the Secretary, 
the Secretary of Health and Human Services, and the State Advisory 
Council on Early Childhood Education and Care.
    (d) Cooperation.--An eligible local entity that receives a subgrant 
under this subtitle shall cooperate with all Federal and State efforts 
to evaluate the effectiveness of the program the entity implements with 
subgrant funds.
    (e) National Report.--The Secretary shall compile and summarize the 
annual State reports described under subsection (c) and shall prepare 
and submit an annual report to Congress that includes a summary of such 
State reports.

SEC. 124. PROHIBITION OF REQUIRED PARTICIPATION OR USE OF FUNDS FOR 
              ASSESSMENTS.

    (a) Prohibition on Required Participation.--A State receiving a 
grant under this subtitle shall not require any child to participate in 
any Federal, State, local, or private early childhood education 
program, including a high-quality prekindergarten program.
    (b) Prohibition on Use of Funds for Assessment.--A State receiving 
a grant under this subtitle and an eligible local entity receiving a 
subgrant under this subtitle shall not use any grant or subgrant funds 
to carry out any of the following activities:
            (1) An assessment that provides rewards or sanctions for 
        individual children, teachers, or principals.
            (2) An assessment that is used as the primary or sole 
        method for assessing program effectiveness.
            (3) Evaluating children, other than for the purposes of--
                    (A) improving instruction or the classroom 
                environment;
                    (B) targeting professional development;
                    (C) determining the need for health, mental health, 
                disability, or family support services;
                    (D) program evaluation for the purposes of program 
                improvement and parent information; and
                    (E) improving parent and family engagement.

SEC. 125. COORDINATION WITH HEAD START PROGRAMS.

    (a) Increased Access for Younger Children.--Not later than 1 year 
after the date of enactment of this Act, the Secretary and the 
Secretary of Health and Human Services shall develop a process--
            (1) for use in the event that Head Start programs funded 
        under the Head Start Act (42 U.S.C. 9831 et seq.) operate in 
        States or regions that have achieved sustained universal, 
        voluntary access to 4-year-old children who reside within the 
        State and who are from families with incomes at or below 200 
        percent of the poverty line to high-quality prekindergarten 
        programs; and
            (2) for how such Head Start programs will begin converting 
        slots for children who are age 4 on the eligibility 
        determination date to children who are age 3 on the eligibility 
        determination date, or, when appropriate, converting Head Start 
        programs into Early Head Start programs to serve infants and 
        toddlers.
    (b) Community Need and Resources.--The process described in 
subsection (a) shall--
            (1) be carried out on a case-by-case basis and shall ensure 
        that sufficient resources and time are allocated for the 
        development of such a process so that no child or cohort is 
        excluded from currently available services; and
            (2) ensure that any conversion shall be based on community 
        need and not on the aggregate number of children served in a 
        State or region that has achieved sustained, universal, 
        voluntary access to high-quality prekindergarten programs.
    (c) Public Comment and Notice.--Not fewer than 90 days after the 
development of the proposed process described in subsection (a), the 
Secretary and the Secretary of Health and Human Services shall publish 
a notice describing such proposed process for conversion in the Federal 
Register providing at least 90 days for public comment. The Secretaries 
shall review and consider public comments prior to finalizing the 
process for conversion of Head Start slots and programs.
    (d) Reports to Congress.--Concurrently with publishing a notice in 
the Federal Register as described in subsection (c), the Secretaries 
shall provide a report to the Committee on Education and the Workforce 
of the House of Representatives and the Committee on Health, Education, 
Labor, and Pensions of the Senate that provides a detailed description 
of the proposed process described in subsection (a), including a 
description of the degree to which Head Start programs are providing 
State-funded high-quality prekindergarten programs as a result of the 
grant opportunity provided under this subtitle in States where Head 
Start programs are eligible for conversion described in subsection (a).

SEC. 126. TECHNICAL ASSISTANCE IN PROGRAM ADMINISTRATION.

    In providing technical assistance to carry out activities under 
this title, the Secretary shall coordinate that technical assistance, 
in appropriate cases, with technical assistance provided by the 
Secretary of Health and Human Services to carry out the programs 
authorized under the Head Start Act (42 U.S.C. 9831 et seq.), the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.), 
and the maternal, infant and early childhood home visiting programs 
assisted under section 511 of the Social Security Act (42 U.S.C. 711).

SEC. 127. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this 
subtitle--
            (1) $1,300,000,000 for fiscal year 2018;
            (2) $3,250,000,000 for fiscal year 2019;
            (3) $5,780,000,000 for fiscal year 2020;
            (4) $7,580,000,000 for fiscal year 2021;
            (5) $8,960,000,000 for fiscal year 2022; and
            (6) such sums as may be necessary for each of fiscal years 
        2023 through 2027.

             Subtitle B--Prekindergarten Development Grants

SEC. 151. PREKINDERGARTEN DEVELOPMENT GRANTS.

    (a) In General.--From the amounts appropriated under subsection 
(f), the Secretary of Education, in consultation with the Secretary of 
Health and Human Services, shall award competitive grants to States 
that wish to increase the capacity and build the infrastructure within 
the State to offer high-quality prekindergarten programs.
    (b) Eligibility.--A State that is not receiving funds under section 
115 may compete for grant funds under this subtitle if the State 
provides an assurance that the State will, through the support of grant 
funds awarded under this subtitle, meet the eligibility requirements of 
section 115 not later than 3 years after the date the State first 
receives grant funds under this subtitle.
    (c) Grants.--
            (1) Duration.--The Secretary shall award grants to States 
        under this subtitle for a period of not more than 3 years and 
        such grants shall not be renewed.
            (2) Authority to subgrant.--
                    (A) In general.--A State receiving a grant under 
                this subtitle may use the grant funds to make subgrants 
                to eligible local entities (defined in section 112(7)) 
                to carry out activities under the grant.
                    (B) Eligible local entities.--An eligible local 
                entity receiving a subgrant under subparagraph (A) 
                shall comply with the requirements for States receiving 
                a grant under this subtitle, as appropriate.
    (d) Application.--
            (1) In general.--A Governor of a State that desires to 
        receive a grant under this subtitle shall submit an application 
        to the Secretary of Education at such time, in such manner, and 
        accompanied by such information as the Secretary may reasonably 
        require, including a description of how the State plans to 
        become eligible for grants under section 115 by not later than 
        3 years after the date the State first receives grant funds 
        under this subtitle.
            (2) Development of application.--In developing an 
        application for a grant under this subtitle, a Governor of a 
        State shall consult with the State Advisory Council on Early 
        Childhood Education and Care, and incorporate their 
        recommendations, where applicable.
    (e) Matching Requirement.--
            (1) In general.--To be eligible to receive a grant under 
        this subtitle, a State shall contribute for the activities for 
        which the grant was awarded non-Federal matching funds in an 
        amount equal to not less than 20 percent of the amount of the 
        grant.
            (2) Non-federal funds.--To satisfy the requirement of 
        paragraph (1), a State may use--
                    (A) cash; or
                    (B) an in-kind contribution.
            (3) Financial hardship waiver.--The Secretary may waive 
        paragraph (1) or reduce the amount of matching funds required 
        under that paragraph for a State that has submitted an 
        application for a grant under this subtitle if the State 
        demonstrates, in the application, a need for such a waiver or 
        reduction due to extreme financial hardship, as determined by 
        the Secretary of Education.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subtitle--
            (1) $750,000,000 for fiscal year 2018; and
            (2) such sums as may be necessary for each of fiscal years 
        2019 through 2027.

   TITLE II--YOUTH PROMISE/FEDERAL COORDINATION OF LOCAL AND TRIBAL 
                JUVENILE JUSTICE INFORMATION AND EFFORTS

SEC. 201. PROMISE ADVISORY PANEL.

    (a) Organization of State Advisory Group Member Representatives.--
Section 223(f) of the Juvenile Justice and Delinquency Prevention Act 
of 1974 (42 U.S.C. 5633(f)) is amended--
            (1) in paragraph (1), by striking ``an eligible 
        organization composed of member representatives of the State 
        advisory groups appointed under subsection (a)(3)'' and 
        inserting ``a nonpartisan, nonprofit organization that is 
        described in section 501(c)(3) of the Internal Revenue Code of 
        1986,''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) Assistance.--To be eligible to receive such 
        assistance, such organization shall--
                    ``(A) be governed by individuals who--
                            ``(i) have been appointed by a chief 
                        executive of a State to serve as a State 
                        advisory group member under subsection (a)(3); 
                        and
                            ``(ii) are elected to serve as a governing 
                        officer of such organization by a majority of 
                        the Chairs (or Chair-designees) of all such 
                        State advisory groups;
                    ``(B) include member representatives from a 
                majority of such State advisory groups, who shall be 
                representative of regionally and demographically 
                diverse States and jurisdictions;
                    ``(C) annually seek appointments by the chief 
                executive of each State of one State advisory group 
                member and one alternate State advisory group member 
                from each such State to implement the advisory 
                functions specified in clauses (iv) and (v) of 
                subparagraph (D), including serving on the PROMISE 
                Advisory Panel, and make a record of any such 
                appointments available to the public; and
                    ``(D) agree to carry out activities that include--
                            ``(i) conducting an annual conference of 
                        such member representatives for purposes 
                        relating to the activities of such State 
                        advisory groups;
                            ``(ii) disseminating information, data, 
                        standards, advanced techniques, and program 
                        models;
                            ``(iii) reviewing Federal policies 
                        regarding juvenile justice and delinquency 
                        prevention;
                            ``(iv) advising the Administrator with 
                        respect to particular functions or aspects of 
                        the work of the Office, and appointing a 
                        representative, diverse group of members of 
                        such organization under subparagraph (C) to 
                        serve as an advisory panel of State juvenile 
                        justice advisors (referred to as the `PROMISE 
                        Advisory Panel') to carry out the functions 
                        specified in subsection (g); and
                            ``(v) advising the President and Congress 
                        with regard to State perspectives on the 
                        operation of the Office and Federal legislation 
                        pertaining to juvenile justice and delinquency 
                        prevention.''.
    (b) PROMISE Advisory Panel.--Section 223 of the Juvenile Justice 
and Delinquency Prevention Act of 1974 (42 U.S.C. 5633) is further 
amended by adding at the end the following new subsection:
    ``(g) PROMISE Advisory Panel.--
            ``(1) Functions.--The PROMISE Advisory Panel required under 
        subsection (f)(2)(D) shall--
                    ``(A) assess successful evidence-based and 
                promising practices related to juvenile delinquency and 
                criminal street gang activity prevention and 
                intervention carried out by PROMISE Coordinating 
                Councils under section 511 of title V of division A of 
                the Pathways Out of Poverty Act of 2017;
                    ``(B) provide the Administrator with a list of 
                individuals and organizations with experience in 
                administering or evaluating practices that serve youth 
                involved in, or at risk of involvement in, juvenile 
                delinquency and criminal street gang activity, from 
                which the Administrator shall select individuals who 
                shall--
                            ``(i) provide to the Administrator peer 
                        reviews of applications submitted by units of 
                        local government and Indian tribes pursuant to 
                        title V of division A of the Pathways Out of 
                        Poverty Act of 2017, to ensure that such 
                        applications demonstrate a clear plan to--
                                    ``(I) serve youth as part of an 
                                entire family unit; and
                                    ``(II) coordinate the delivery of 
                                service to youth among agencies; and
                            ``(ii) advise the Administrator with 
                        respect to the award and allocation of PROMISE 
                        Planning grants to local and tribal governments 
                        that develop PROMISE Coordinating Councils, and 
                        of PROMISE Implementation grants to such 
                        PROMISE Coordinating Councils, pursuant to 
                        title V of division A of the Pathways Out of 
                        Poverty Act of 2017; and
                    ``(C) develop performance standards to be used to 
                evaluate programs and activities carried out with 
                grants under title V of division A of the Pathways Out 
                of Poverty Act of 2017, including the evaluation of 
                changes achieved as a result of such programs and 
                activities related to decreases in juvenile delinquency 
                and criminal street gang activity, including--
                            ``(i) prevention of involvement by at-risk 
                        youth in juvenile delinquency or criminal 
                        street gang activity;
                            ``(ii) diversion of youth with a high risk 
                        of continuing involvement in juvenile 
                        delinquency or criminal street gang activity; 
                        and
                            ``(iii) financial savings from deferred or 
                        eliminated costs, or other benefits, as a 
                        result of such programs and activities, and the 
                        reinvestment by the unit or tribe of any such 
                        savings.
            ``(2) Annual report.--Not later than 18 months after the 
        date of the effective date of this subsection, and annually 
        thereafter, the PROMISE Advisory Panel shall prepare a report 
        containing the findings and determinations under paragraph 
        (1)(A) and shall submit such report to Congress, the President, 
        the Attorney General, and the chief executive and chief law 
        enforcement officer of each State, unit of local government, 
        and Indian tribe.''.
    (c) Authorization of Appropriations.--Section 299(a)(1) of the 
Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 
5671(a)(1)) is amended to read as follows:
            ``(1) There are authorized to be appropriated such sums as 
        may be necessary to carry out this title for each of the fiscal 
        years 2015 through 2017.''.

SEC. 202. GEOGRAPHIC ASSESSMENT OF RESOURCE ALLOCATION.

    (a) Grant for Collection of Data To Determine Need.--Subject to the 
availability of appropriations, the Administrator of the Office of 
Juvenile Justice and Delinquency Prevention shall award a grant, on a 
competitive basis, to an organization to--
            (1) collect and analyze data related to the existing 
        juvenile delinquency and criminal street gang activity 
        prevention and intervention needs and resources in each 
        designated geographic area;
            (2) use the data collected and analyzed under paragraph (1) 
        to compile a list of designated geographic areas that have the 
        most need of resources, based on such data, to carry out 
        juvenile delinquency and criminal street gang activity 
        prevention and intervention;
            (3) use the data collected and analyzed under paragraph (1) 
        to rank the areas listed under paragraph (2) in descending 
        order by the amount of need for resources to carry out juvenile 
        delinquency and criminal street gang activity prevention and 
        intervention, ranking the area with the greatest need for such 
        resources highest; and
            (4) periodically update the list and rankings under 
        paragraph (3) as the Administrator determines to be 
        appropriate.
    (b) Data Sources.--In compiling such list and determining such 
rankings, the organization shall collect and analyze data relating to 
juvenile delinquency and criminal street gang activity prevention and 
intervention--
            (1) using the geographic information system and Web-based 
        mapping application known as the Socioeconomic Mapping and 
        Resource Topography (SMART) system;
            (2) from the Department of Health and Human Services, the 
        Department of Labor, the Department of Housing and Urban 
        Development, and the Department of Education; and
            (3) from the annual KIDS Count Data Book and other data 
        made available by the KIDS Count initiative of the Annie E. 
        Casey Foundation.
    (c) Use of Data by the Administrator.--The list and rankings 
required by this section shall be provided to the Administrator to be 
used to provide funds under this section in the most strategic and 
effective manner to ensure that resources and services are provided to 
youth in the communities with the greatest need for such resources and 
services.
    (d) Limitation on Use of Collected Data.--The information collected 
and analyzed under this section may not be used for any purpose other 
than to carry out the purposes of this section. Such information may 
not be used for any purpose related to the investigation or prosecution 
of any person, or for profiling of individuals based on race, 
ethnicity, socio-economic status, or any other characteristic.
    (e) Authorization and Limitation of Appropriations.--Of the amount 
appropriated for fiscal year 2018 to carry out this section and 
subtitle A of title V of this Act, not more than 1 percent of such 
amount, or $1,000,000, whichever is less, shall be available to carry 
out this section.

                       TITLE III--PROMISE GRANTS

SEC. 301. PURPOSES.

    The purposes of the grant programs established under this title are 
to--
            (1) enable local and tribal communities to assess the unmet 
        needs of youth who are involved in, or are at risk of 
        involvement in, juvenile delinquency or criminal street gangs;
            (2) develop plans appropriate for a community to address 
        those unmet needs with juvenile delinquency and gang prevention 
        and intervention practices; and
            (3) implement and evaluate such plans in a manner 
        consistent with this title.

SEC. 302. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Office of Juvenile Justice and Delinquency 
        Prevention.
            (2) Community.--The term ``community'' means a unit of 
        local government or an Indian tribe, or part of such a unit or 
        tribe, as determined by such a unit or tribe for the purpose of 
        applying for a grant under this title.
            (3) Designated geographic area.--The term ``designated 
        geographic area'' means a 5-digit postal ZIP Code assigned to a 
        geographic area by the United States Postal Service.
            (4) Evidence-based.--
                    (A) In general.--The term ``evidence-based'', when 
                used with respect to a practice relating to juvenile 
                delinquency and criminal street gang activity 
                prevention and intervention, means a practice 
                (including a service, program, activity, intervention, 
                technology, or strategy) for which the Administrator 
                has determined--
                            (i) causal evidence documents a 
                        relationship between the practice and its 
                        intended outcome, based on measures of the 
                        direction and size of a change, and the extent 
                        to which a change may be attributed to the 
                        practice; and
                            (ii) the use of scientific methods rules 
                        out, to the extent possible, alternative 
                        explanations for the documented change.
                    (B) Scientific methods.--For the purposes of 
                subparagraph (A), the term ``scientific methods'' 
                means--
                            (i) evaluation by an experimental trial, in 
                        which participants are randomly assigned to 
                        participate in the practice that is subject to 
                        such trial; or
                            (ii) evaluation by a quasi-experimental 
                        trial, in which the outcomes for participants 
                        are compared with outcomes for a control group 
                        that is made up of individuals who are similar 
                        to such participants.
            (5) Intervention.--The term ``intervention'' means the 
        provision of programs and services that are supported by 
        research, are evidence-based or promising practices, and are 
        provided to youth who are involved in, or who are identified by 
        evidence-based risk assessment methods as being at high risk of 
        continued involvement in, juvenile delinquency or criminal 
        street gangs, as a result of indications that demonstrate 
        involvement with problems such as truancy, substance abuse, 
        mental health treatment needs, or siblings who have had 
        involvement with juvenile or criminal justice systems.
            (6) Juvenile delinquency and criminal street gang activity 
        prevention.--The term ``juvenile delinquency and criminal 
        street gang activity prevention'' means the provision of 
        programs and resources to children and families who have not 
        yet had substantial contact with criminal justice or juvenile 
        justice systems, that--
                    (A) are designed to reduce potential juvenile 
                delinquency and criminal street gang activity risks; 
                and
                    (B) are evidence-based or promising educational, 
                health, mental health, school-based, community-based, 
                faith-based, parenting, job training, social 
                opportunities and experiences, or other programs, for 
                youth and their families, that have been demonstrated 
                to be effective in reducing juvenile delinquency and 
                criminal street gang activity risks.
            (7) Promising.--The term ``promising'', when used with 
        respect to a practice relating to juvenile delinquency and 
        criminal street gang activity prevention and intervention, 
        means a practice (including a service, program, activity, 
        intervention, technology, or strategy) that, based on 
        statistical analyses or a theory of change, the Administrator 
        has determined--
                    (A) has outcomes from an evaluation that 
                demonstrate such practice reduces juvenile delinquency 
                and criminal street gang activity; and
                    (B) is part of a study being conducted to determine 
                if such a practice is evidence-based.
            (8) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, American Samoa, Guam, 
        the Northern Mariana Islands, and any other territories or 
        possessions of the United States.
            (9) Theory of change.--The term ``theory of change'' means 
        a program planning strategy approved by the Administrator that 
        outlines the types of interventions and outcomes essential to 
        achieving a set of program goals.
            (10) Youth.--The term ``youth'' means--
                    (A) an individual who is 18 years of age or 
                younger; or
                    (B) in any State in which the maximum age at which 
                the juvenile justice system of such State has 
                jurisdiction over individuals exceeds 18 years of age, 
                an individual who is such maximum age or younger.

           Subtitle A--PROMISE Assessment and Planning Grants

SEC. 310. PROMISE ASSESSMENT AND PLANNING GRANTS AUTHORIZED.

    (a) Grants Authorized.--The Administrator is authorized to award 
grants to units of local government and Indian tribes to assist PROMISE 
Coordinating Councils with planning and assessing evidence-based and 
promising practices relating to juvenile delinquency and criminal 
street gang activity prevention and intervention, especially for youth 
who are involved in, or who are at risk of involvement in, juvenile 
delinquency and criminal street gang activity. Such PROMISE 
Coordinating Councils shall--
            (1) conduct an objective needs and strengths assessment in 
        accordance with section 512; and
            (2) develop a PROMISE Plan in accordance with section 513, 
        based on the assessment conducted in accordance with section 
        512.
    (b) Grant Duration, Amount, and Allocation.--
            (1) Duration.--A grant awarded under this section shall be 
        for a period not to exceed one year.
            (2) Maximum grant amount.--A grant awarded under this 
        section shall not exceed $300,000.
    (c) Allocation.--
            (1) Minimum allocation.--Subject to the availability of 
        appropriations, the Administrator shall ensure that the total 
        funds allocated under this section to units of local 
        governments and Indian tribes in a State shall not be less than 
        $1,000,000.
            (2) Ratable reduction.--If the amount made available for 
        grants under this section for any fiscal year is less than the 
        amount required to provide the minimum allocation of funds 
        under paragraph (1) to units of local government and Indian 
        tribes in each State, then the amount of such minimum 
        allocation shall be ratably reduced.

SEC. 311. PROMISE COORDINATING COUNCILS.

    To be eligible to receive a grant under this subtitle, a unit of 
local government or an Indian tribe shall establish a PROMISE 
Coordinating Council for each community of such unit or tribe, 
respectively, for which such unit or tribe is applying for a grant 
under this subtitle. Each such community shall include one or more 
designated geographic areas identified on the list required under 
section 402(a)(2). The members of such a PROMISE Coordinating Council 
shall be representatives of public and private sector entities and 
individuals that--
            (1) shall include, to the extent possible, at least one 
        representative from each of the following:
                    (A) the local chief executive's office;
                    (B) a local educational agency;
                    (C) a local health agency or provider;
                    (D) a local mental health agency or provider, 
                unless the representative under subparagraph (C) also 
                meets the requirements of this subparagraph;
                    (E) a local public housing agency;
                    (F) a local law enforcement agency;
                    (G) a local child welfare agency;
                    (H) a local juvenile court;
                    (I) a local juvenile prosecutor's office;
                    (J) a private juvenile residential care entity;
                    (K) a local juvenile public defender's office;
                    (L) a State juvenile correctional entity;
                    (M) a local business community representative; and
                    (N) a local faith-based community representative;
            (2) shall include two representatives from each of the 
        following:
                    (A) parents who have minor children, and who have 
                an interest in the local juvenile or criminal justice 
                systems;
                    (B) youth between the ages of 15 and 24 who reside 
                in the jurisdiction of the unit or tribe; and
                    (C) members from nonprofit community-based 
                organizations that provide effective delinquency 
                prevention and intervention to youth in the 
                jurisdiction of the unit or tribe; and
            (3) may include other members, as the unit or tribe 
        determines to be appropriate.

SEC. 312. NEEDS AND STRENGTHS ASSESSMENT.

    (a) Assessment.--Each PROMISE Coordinating Council receiving funds 
from a unit of local government or Indian tribe under this subtitle 
shall conduct an objective strengths and needs assessment of the 
resources of the community for which such PROMISE Coordinating Council 
was established, to identify the unmet needs of youth in the community 
with respect to evidence-based and promising practices related to 
juvenile delinquency and criminal street gang activity prevention and 
intervention. Such assessment shall include, with respect to the 
community for which such PROMISE Coordinating Council was established--
            (1) the number of youth who are at risk of involvement in 
        juvenile delinquency or street gang activity;
            (2) the number of youth who are involved in juvenile 
        delinquency or criminal street gang activity, including the 
        number of such youth who are at high risk of continued 
        involvement;
            (3) youth unemployment rates during the summer;
            (4) the number of individuals on public financial 
        assistance (including a breakdown of the numbers of men, women, 
        and children on such assistance);
            (5) the estimated number of youth who are chronically 
        truant;
            (6) the number of youth who have dropped out of school in 
        the previous year;
            (7) for the year before such assessment, the estimated 
        total amount expended (by the community and other entities) for 
        the incarceration of offenders who were convicted or 
        adjudicated delinquent for an offense that was committed in 
        such community, including amounts expended for the 
        incarceration of offenders in prisons, jails, and juvenile 
        facilities that are located in the United States but are not 
        located in such community;
            (8) a comparison of the amount under paragraph (7) with an 
        estimation of the amount that would be expended for the 
        incarceration of offenders described in such paragraph if the 
        number of offenders described in such paragraph was equal to 
        the national average incarceration rate per 100,000 population;
            (9) a description of evidence-based and promising practices 
        related to juvenile delinquency and criminal street gang 
        activity prevention available for youth in the community, 
        including school-based programs, after school programs 
        (particularly programs that have activities available for youth 
        between 3 p.m. and 6 p.m. in the afternoon), weekend activities 
        and programs, youth mentoring programs, faith and community-
        based programs, summer activities, and summer jobs, if any; and
            (10) a description of evidence-based and promising 
        intervention practices available for youth in the community.
    (b) Limitation on Use of Assessment Information.--Information 
gathered pursuant to this section may be used for the sole purpose of 
developing a PROMISE Plan in accordance with this subtitle.

SEC. 313. PROMISE PLAN COMPONENTS.

    (a) In General.--Each PROMISE Coordinating Council receiving funds 
from a unit of local government or Indian tribe under this subtitle 
shall develop a PROMISE Plan to provide for the coordination of, and, 
as appropriate, to support the delivery of, evidence-based and 
promising practices related to juvenile delinquency and criminal street 
gang activity prevention and intervention to youth and families who 
reside in the community for which such PROMISE Coordinating Council was 
established. Such a PROMISE Plan shall--
            (1) include the strategy by which the PROMISE Coordinating 
        Council plans to prioritize and allocate resources and services 
        toward the unmet needs of youth in the community, consistent 
        with the needs and available resources of communities with the 
        greatest need for assistance, as determined pursuant to section 
        402;
            (2) include a combination of evidence-based and promising 
        prevention and intervention practices that are responsive to 
        the needs of the community; and
            (3) ensure that cultural and linguistic needs of the 
        community are met.
    (b) Mandatory Components.--Each PROMISE Plan shall--
            (1) include a plan to connect youth identified in 
        paragraphs (1) and (2) of section 512(a) to evidence-based and 
        promising practices related to juvenile delinquency and 
        criminal street gang activity prevention and intervention;
            (2) identify the amount or percentage of local funds that 
        are available to the PROMISE Coordinating Council to carry out 
        the PROMISE Plan;
            (3) provide strategies to improve indigent defense delivery 
        systems, with particular attention given to groups of children 
        who are disproportionately represented in the State delinquency 
        system and Federal criminal justice system, as compared to the 
        representation of such groups in the general population of the 
        State;
            (4) provide for training (which complies with the American 
        Bar Association Juvenile Justice Standards for the 
        representation and care of youth in the juvenile justice 
        system) of prosecutors, defenders, probation officers, judges 
        and other court personnel related to issues concerning the 
        developmental needs, challenges, and potential of youth in the 
        juvenile justice system (including training related to 
        adolescent development and mental health issues, and the 
        expected impact of evidence-based practices and cost reduction 
        strategies);
            (5) ensure that the number of youth involved in the 
        juvenile delinquency and criminal justice systems does not 
        increase as a result of the activities undertaken with the 
        funds provided under this subtitle;
            (6) describe the coordinated strategy that will be used by 
        the PROMISE Coordinating Council to provide at-risk youth with 
        evidence-based and promising practices related to juvenile 
        delinquency and criminal street gang activity prevention and 
        intervention;
            (7) propose the performance evaluation process to be used 
        to carry out section 530(d), which shall include performance 
        measures to assess efforts to address the unmet needs of youth 
        in the community with evidence-based and promising practices 
        related to juvenile delinquency and criminal street gang 
        activity prevention and intervention; and
            (8) identify the research partner the PROMISE Coordinating 
        Council will use to obtain information on evidence-based and 
        promising practices related to juvenile delinquency and 
        criminal street gang activity prevention and intervention, and 
        for the evaluation under section 530(d) of the results of the 
        activities carried out with funds under this subtitle.
    (c) Voluntary Components.--In addition to the components under 
subsection (b), a PROMISE Plan may include evidence-based or promising 
practices related to juvenile delinquency and criminal street gang 
activity prevention and intervention in the following categories:
            (1) Early childhood development services (such as pre-natal 
        and neo-natal health services), early childhood prevention, 
        voluntary home visiting programs, nurse-family partnership 
        programs, parenting and healthy relationship skills training, 
        child abuse prevention programs, Early Head Start, and Head 
        Start.
            (2) Child protection and safety services (such as foster 
        care and adoption assistance programs), family stabilization 
        programs, child welfare services, and family violence 
        intervention programs.
            (3) Youth and adolescent development services, including 
        job training and apprenticeship programs, job placement and 
        retention training, education and after school programs (such 
        as school programs with shared governance by students, 
        teachers, and parents, and activities for youth between the 
        hours of 3 p.m. and 6 p.m. in the afternoon), mentoring 
        programs, conflict resolution skills training, sports, arts, 
        life skills, employment and recreation programs, summer jobs, 
        and summer recreation programs, and alternative school 
        resources for youth who have dropped out of school or 
        demonstrate chronic truancy.
            (4) Health and mental health services, including cognitive 
        behavioral therapy, play therapy, and peer mentoring and 
        counseling.
            (5) Substance abuse counseling and treatment services, 
        including harm-reduction strategies.
            (6) Emergency, transitional, and permanent housing 
        assistance (such as safe shelter and housing for runaway and 
        homeless youth).
            (7) Targeted gang prevention, intervention, and exit 
        services such as tattoo removal, successful models of anti-gang 
        crime outreach programs (such as ``street worker'' programs), 
        and other criminal street gang truce or peacemaking activities.
            (8) Training and education programs for pregnant teens and 
        teen parents.
            (9) Alternatives to detention and confinement programs 
        (such as mandated participation in community service, 
        restitution, counseling, and intensive individual and family 
        therapeutic approaches).
            (10) Pre-release, post-release, and reentry services to 
        assist detained and incarcerated youth with transitioning back 
        into and reentering the community.

SEC. 314. AUTHORIZATION OF APPROPRIATIONS.

    Subject to the limitation under section 402(e), there are 
authorized to be appropriated for fiscal year 2018, such sums as may be 
necessary to carry out this subtitle and section 402.

               Subtitle B--PROMISE Implementation Grants

SEC. 320. PROMISE IMPLEMENTATION GRANTS AUTHORIZED.

    (a) PROMISE Implementation Grants Authorized.--The Administrator of 
the Office of Juvenile Justice and Delinquency Prevention is authorized 
to award grants to units of local government and Indian tribes to 
assist PROMISE Coordinating Councils with implementing PROMISE Plans 
developed pursuant to subtitle A.
    (b) Grant Duration and Amount.--
            (1) Duration.--A grant awarded under this subtitle shall be 
        for a three-year period.
            (2) Maximum grant amount.--A grant awarded under this 
        subtitle shall not be for more than $10,000,000 per year for 
        each year of the grant period.
    (c) Non-Federal Funds Required.--For each fiscal year during the 
three-year grant period for a grant under this subtitle, each unit of 
local government or Indian tribe receiving such a grant for a PROMISE 
Coordinating Council shall provide, from non-Federal funds, in cash or 
in-kind, 25 percent of the costs of the activities carried out with 
such grant.
    (d) Evaluation.--Of any funds provided to a unit of local 
government or an Indian tribe for a grant under this subtitle, not more 
than $100,000 shall be used to provide a contract to a competitively 
selected organization to assess the progress of the unit or tribe in 
addressing the unmet needs of youth in the community, in accordance 
with the performance measures under section 513(b)(7).

SEC. 321. PROMISE IMPLEMENTATION GRANT APPLICATION REQUIREMENTS.

    (a) Application Required.--To be eligible to receive a PROMISE 
Implementation grant under this subtitle, a unit of local government or 
Indian tribe that received a PROMISE Assessment and Planning grant 
under subtitle A shall submit an application to the Administrator of 
the Office of Juvenile Justice and Delinquency Prevention not later 
than one year after the date such unit of local government or Indian 
tribe was awarded such grant under subtitle A, in such manner, and 
accompanied by such information, as the Administrator, after 
consultation with the organization under section 223(f)(1) of the 
Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 
5633(f)(1)), may require.
    (b) Contents of Application.--Each application submitted under 
subsection (a) shall--
            (1) identify potential savings from criminal justice costs, 
        public assistance costs, and other costs avoided by utilizing 
        evidence-based and promising practices related to juvenile 
        delinquency and criminal street gang activity prevention and 
        intervention;
            (2) document--
                    (A) investment in evidence-based and promising 
                practices related to juvenile delinquency and criminal 
                street gang activity prevention and intervention to be 
                provided by the unit of local government or Indian 
                tribe;
                    (B) the activities to be undertaken with the grants 
                funds;
                    (C) any expected efficiencies in the juvenile 
                justice or other local systems to be attained as a 
                result of implementation of the programs funded by the 
                grant; and
                    (D) outcomes from such activities, in terms of the 
                expected numbers related to reduced criminal activity;
            (3) describe how savings sustained from investment in 
        prevention and intervention practices will be reinvested in the 
        continuing implementation of the PROMISE Plan; and
            (4) provide an assurance that the local fiscal contribution 
        with respect to evidence-based and promising practices related 
        to juvenile delinquency and criminal street gang activity 
        prevention and intervention in the community for which the 
        PROMISE Coordinating Council was established for each year of 
        the grant period will not be less than the local fiscal 
        contribution with respect to such practices in the community 
        for the year preceding the first year of the grant period.

SEC. 322. GRANT AWARD GUIDELINES.

    (a) Selection and Distribution.--Grants awarded under this subtitle 
shall be awarded on a competitive basis. The Administrator shall--
            (1) take such steps as may be necessary to ensure that 
        grants are awarded to units of local governments and Indian 
        tribes in areas with the highest concentrations of youth who 
        are--
                    (A) at risk of involvement in juvenile delinquency 
                or criminal street gang activity; and
                    (B) involved in juvenile delinquency or street gang 
                activity and who are at high risk of continued 
                involvement; and
            (2) give consideration to the need for grants to be awarded 
        to units of local governments and Indian tribes in each region 
        of the United States, and among urban, suburban, and rural 
        areas.
    (b) Extension of Grant Award.--The Administrator may extend the 
grant period under section 530(b)(1) for a PROMISE Implementation grant 
to a unit of local government or an Indian tribe, in accordance with 
regulations issued by the Administrator.
    (c) Renewal of Grant Award.--Subject to the availability of 
appropriations, the Administrator may renew a PROMISE Implementation 
grant to a unit of local government or an Indian tribe to provide such 
unit or tribe with additional funds to continue implementation of a 
PROMISE Plan. Such a renewal--
            (1) shall be initiated by an application for renewal from a 
        unit of local government or an Indian tribe;
            (2) shall be carried out in accordance with regulations 
        issued by the Administrator; and
            (3) shall not be granted unless the Administrator 
        determines such a renewal to be appropriate based on the 
        results of the evaluation conducted under section 523(a) with 
        respect to the community of such unit or tribe for which a 
        PROMISE Coordinating Council was established, and for which 
        such unit or tribe is applying for renewal.

SEC. 323. REPORTS.

    Not later than one year after the end of the grant period for which 
a unit of local government or an Indian tribe receives a PROMISE 
Implementation grant, and annually thereafter for as long as such unit 
or tribe continues to receive Federal funding for a PROMISE 
Coordinating Council, such unit or tribe shall report to the 
Administrator regarding the use of Federal funds to implement the 
PROMISE Plan developed under subtitle A.

SEC. 324. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this subtitle 
such sums as may be necessary for each of the fiscal years 2018 through 
2020.

              Subtitle C--General PROMISE Grant Provisions

SEC. 330. NONSUPPLANTING CLAUSE.

    A unit of local government or Indian tribe receiving a grant under 
this title shall use such grant only to supplement, and not supplant, 
the amount of funds that, in the absence of such grant, would be 
available to address the needs of youth in the community with respect 
to evidence-based and promising practices related to juvenile 
delinquency and criminal street gang activity prevention and 
intervention.

SEC. 331. GRANT APPLICATION REVIEW PANEL.

    The Administrator of the Office of Juvenile Justice and Delinquency 
Prevention, in conjunction with the PROMISE Advisory Panel, shall 
establish and utilize a transparent, reliable, and valid system for 
evaluating applications for PROMISE Assessment and Planning grants and 
for PROMISE Implementation grants, and shall determine which applicants 
meet the criteria for funding, based primarily on a determination of 
greatest need (in accordance with section 402), with due consideration 
to other enumerated factors and the indicated ability of the applicant 
to successfully implement the program described in the application.

SEC. 332. EVALUATION OF PROMISE GRANT PROGRAMS.

    Subject to the availability of appropriations under this title, the 
Administrator shall, in consultation with the organization provided 
assistance under section 223(f)(1) of the Juvenile Justice and 
Delinquency Prevention Act of 1974 (42 U.S.C. 5633(f)(1)), provide for 
an evaluation of the programs and activities carried out with grants 
under this title. In carrying out this section, the Administrator 
shall--
            (1) award grants to institutions of higher education 
        (including institutions that are eligible to receive funds 
        under part F of title III of the Higher Education Act of 1965 
        (20 U.S.C. 1067q et seq.)), to facilitate the evaluation 
        process and measurement of achieved outcomes;
            (2) identify evidence-based and promising practices used by 
        PROMISE Coordinating Councils under PROMISE Implementation 
        grants that have proven to be effective in preventing 
        involvement in, or diverting further involvement in, juvenile 
        delinquency or criminal street gang activity; and
            (3) ensure--
                    (A) that such evaluation is based on the 
                performance standards that are developed by the PROMISE 
                Advisory Panel in accordance with section 223(g) of the 
                Juvenile Justice and Delinquency Prevention Act of 1974 
                (as added by section 401(b) of title IV of this 
                division);
                    (B) the development of longitudinal and clinical 
                trial evaluation and performance measurements with 
                regard to the evidence-based and promising practices 
                funded under this title; and
                    (C) the dissemination of the practices identified 
                in paragraph (2) to units of local government and 
                Indian tribes to promote the use of such practices by 
                such units and tribes to prevent involvement in, or to 
                divert further involvement in, juvenile delinquency or 
                criminal street gang activity.

          TITLE IV--PELL GRANT PRESERVATION AND EXPANSION ACT

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Pell Grant Preservation and 
Expansion Act''.

SEC. 402. FINDINGS.

    Congress finds the following:
            (1) The United States needs individuals with the knowledge, 
        skills, and abilities that enable them to thrive as educated 
        citizens in society and successfully participate in an 
        interconnected economy.
            (2) Investments in higher education through student aid 
        such as the Federal Pell Grant program under section 401 of the 
        Higher Education Act of 1965 (20 U.S.C. 1070a) help students 
        and families reach, afford, and complete education and training 
        opportunities beyond high school.
            (3) The Federal Pell Grant program is the largest source of 
        federally funded grant aid for postsecondary education.
            (4) The Federal Pell Grant program allows millions of 
        people of the United States to attend college and is especially 
        vital to students of color. Three in five African-American 
        undergraduate students, and one-half of all Latino 
        undergraduate students, rely on the Federal Pell Grant program.
            (5) The Federal Pell Grant program should continue to be a 
        reliable source of funding for aspiring students, their 
        families, and future generations that they can count on to be 
        there for them when they seek higher education.
            (6) To stabilize Federal Pell Grant funding and ensure the 
        grant will continue to serve millions of students now and in 
        the future, the program should become a fully mandatory program 
        that grows with inflation.
            (7) Protecting surplus funds, restoring prior eligibility 
        cuts, and expanding access to underserved students will give 
        millions of students and families the critical student aid 
        support they need and deserve.

SEC. 403. REFERENCES.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.).

SEC. 404. FUNDING FEDERAL PELL GRANTS THROUGH MANDATORY FUNDING.

    (a) Mandatory Funding; Reinstating Eligibility for Incarcerated 
Individuals.--Section 401 (20 U.S.C. 1070a) is amended--
            (1) in subsection (a)(1), by striking ``through fiscal year 
        2017'';
            (2) in subsection (b)--
                    (A) by striking paragraphs (1), (6), and (7);
                    (B) by redesignating paragraph (8) as paragraph 
                (7);
                    (C) by striking subparagraph (A) of paragraph (2);
                    (D) by redesignating subparagraph (B) of paragraph 
                (2) as paragraph (2);
                    (E) by inserting before paragraph (2) (as 
                redesignated by subparagraph (D)) the following:
    ``(1) Amount.--The amount of the Federal Pell Grant for a student 
eligible under this subpart shall be--
            ``(A) the maximum Federal Pell Grant described in paragraph 
        (6); less
            ``(B) the amount equal to the amount determined to be the 
        expected family contribution with respect to such student for 
        such year.'';
                    (F) in paragraph (4), by striking ``maximum amount 
                of a Federal Pell Grant award determined under 
                paragraph (2)(A)'' and inserting ``maximum Federal Pell 
                Grant described in paragraph (6)'';
                    (G) in paragraph (5), by striking ``maximum amount 
                of a Federal Pell Grant award determined under 
                paragraph (2)(A)'' and inserting ``maximum amount of a 
                Federal Pell Grant award described in paragraph (6)'';
                    (H) by inserting after paragraph (5) the following:
            ``(6) Maximum federal pell grant.--
                    ``(A) Award year 2018-2019.--For award year 2018-
                2019, the maximum Federal Pell Grant shall be $6,420.
                    ``(B) Subsequent award years.--For award year 2019-
                2020 and each subsequent award year, the maximum 
                Federal Pell Grant shall be equal to the total maximum 
                Federal Pell Grant for the preceding award year under 
                this paragraph--
                            ``(i) increased by the annual adjustment 
                        percentage for the award year for which the 
                        amount under this subparagraph is being 
                        determined; and
                            ``(ii) rounded to the nearest $5.
                    ``(C) Definition of annual adjustment percentage.--
                In this paragraph, the term `annual adjustment 
                percentage', as applied to an award year, is equal to 
                the estimated percentage increase in the Consumer Price 
                Index (as determined by the Secretary, using the 
                definition in section 478(f)) for the most recent 
                calendar year ending prior to the beginning of that 
                award year.''; and
                    (I) in paragraph (7), as redesignated by 
                subparagraph (B), by striking ``may exceed'' and all 
                that follows through the period and inserting ``may 
                exceed the maximum Federal Pell Grant available for an 
                award year.'';
            (3) in subsection (f)--
                    (A) in paragraph (1), by striking the matter 
                preceding subparagraph (A) and inserting the following: 
                ``After receiving an application for a Federal Pell 
                Grant under this subpart, the Secretary (including any 
                contractor of the Secretary processing applications for 
                Federal Pell Grants under this subpart) shall, in a 
                timely manner, furnish to the student financial aid 
                administrator at each institution of higher education 
                that a student awarded a Federal Pell Grant under this 
                subpart is attending, the expected family contribution 
                for each such student. Each such student financial 
                administrator shall--''; and
                    (B) in paragraph (3)--
                            (i) by striking ``after academic year 1986-
                        1987''; and
                            (ii) in paragraph (3), by striking ``the 
                        Committee on Appropriations of the Senate, the 
                        Committee on Appropriations of the House of 
                        Representatives, and'';
            (4) by striking subsections (g) and (h);
            (5) by redesignating subsections (i) and (j) as subsections 
        (g) and (h), respectively; and
            (6) by adding at the end the following:
    ``(k) Appropriation of Funds.--There are authorized to be 
appropriated, and there are appropriated, out of any money in the 
Treasury not otherwise appropriated, such sums as may be necessary for 
fiscal year 2017 and each subsequent fiscal year to provide the maximum 
Federal Pell Grant for which a student shall be eligible under this 
section during an award year.''.
    (b) Repeal of Scoring Requirement.--Section 406 of H. Con. Res. 95 
(109th Congress) is amended--
            (1) by striking subsection (b); and
            (2) by striking ``(a) In General.--Upon'' and inserting the 
        following: ``Upon''.

SEC. 405. RESTORING FEDERAL PELL GRANT ELIGIBILITY FOR BORROWER 
              DEFENSE.

    Section 401(c)(5) (20 U.S.C. 1070a(c)(5)) is amended--
            (1) by striking ``(5) The period'' and inserting the 
        following: ``(5) Maximum period.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the period''; and
            (2) by adding at the end the following:
                    ``(B) Exception.--
                            ``(i) In general.--Any Federal Pell Grant 
                        that a student received during a period 
                        described in subclause (I) or (II) of clause 
                        (ii) shall not count towards the student's 
                        duration limits under this paragraph.
                            ``(ii) Applicable periods.--Clause (i) 
                        shall apply with respect to any Federal Pell 
                        Grant awarded to a student to attend an 
                        institution--
                                    ``(I) during a period--
                                            ``(aa) for which the 
                                        student received a loan under 
                                        this title; and
                                            ``(bb) for which the loan 
                                        described in item (aa) is 
                                        forgiven under--

                                                    ``(AA) section 
                                                437(c)(1) or 464(g)(1) 
                                                due to the closing of 
                                                the institution;

                                                    ``(BB) section 
                                                455(h) due to the 
                                                student's successful 
                                                assertion of a defense 
                                                to repayment of the 
                                                loan; or

                                                    ``(CC) section 
                                                432(a)(6), section 
                                                685.215 of title 34, 
                                                Code of Federal 
                                                Regulations (or a 
                                                successor regulation), 
                                                or any other loan 
                                                forgiveness provision 
                                                or regulation under 
                                                this Act, as a result 
                                                of a determination by 
                                                the Secretary or a 
                                                court that the 
                                                institution committed 
                                                fraud or other 
                                                misconduct; or

                                    ``(II) during a period for which 
                                the student did not receive a loan 
                                under this title but for which, if the 
                                student had received such a loan, the 
                                student would have qualified for loan 
                                forgiveness under subclause (I)(bb).''.

SEC. 406. FEDERAL PELL GRANT ELIGIBILITY FOR DREAMER STUDENTS.

    Section 484 (20 U.S.C. 1091) is amended--
            (1) in subsection (a)(5), by inserting ``, or be a Dreamer 
        student, as defined in subsection (u)'' after ``becoming a 
        citizen or permanent resident''; and
            (2) by adding at the end the following:
    ``(u) Dreamer Students.--
            ``(1) In general.--In this section, the term `Dreamer 
        student' means an individual who--
                    ``(A) was younger than 16 years of age on the date 
                on which the individual initially entered the United 
                States;
                    ``(B) has provided a list of each secondary school 
                that the student attended in the United States; and
                    ``(C)(i) has earned a high school diploma, the 
                recognized equivalent of such diploma from a secondary 
                school, or a high school equivalency diploma in the 
                United States or is scheduled to complete the 
                requirements for such a diploma or equivalent before 
                the next academic year begins;
                    ``(ii) has acquired a degree from an institution of 
                higher education or has completed not less than 2 years 
                in a program for a baccalaureate degree or higher 
                degree at an institution of higher education in the 
                United States and has made satisfactory academic 
                progress, as defined in subsection (c), during such 
                time period;
                    ``(iii) at any time was eligible for a grant of 
                deferred action under--
                            ``(I) the June 15, 2012, memorandum from 
                        the Secretary of Homeland Security entitled 
                        `Exercising Prosecutorial Discretion with 
                        Respect to Individuals Who Came to the United 
                        States as Children'; or
                            ``(II) the November 20, 2014, memorandum 
                        from the Secretary of Homeland Security 
                        entitled `Exercising Prosecutorial Discretion 
                        with Respect to Individuals Who Came to the 
                        United States as Children and with Respect to 
                        Certain Individuals Who Are the Parents of U.S. 
                        Citizens or Permanent Residents'; or
                    ``(iv) has served in the uniformed services, as 
                defined in section 101 of title 10, United States Code, 
                for not less than 4 years and, if discharged, received 
                an honorable discharge.
            ``(2) Hardship exception.--The Secretary shall issue 
        regulations that direct when the Department shall waive the 
        requirement of subparagraph (A) or (B), or both, of paragraph 
        (1) for an individual to qualify as a Dreamer student under 
        such paragraph, if the individual--
                    ``(A) demonstrates compelling circumstances for the 
                inability to satisfy the requirement of such 
                subparagraph (A) or (B), or both; and
                    ``(B) satisfies the requirement of paragraph 
                (1)(C).''.

SEC. 407. REPEAL OF SUSPENSION OF ELIGIBILITY UNDER THE HIGHER 
              EDUCATION ACT OF 1965 FOR GRANTS, LOANS, AND WORK 
              ASSISTANCE FOR DRUG-RELATED OFFENSES.

    (a) Repeal.--Subsection (r) of section 484 (20 U.S.C. 1091(r)) is 
repealed.
    (b) Revision of FAFSA Form.--Section 483 of the Higher Education 
Act of 1965 (20 U.S.C. 1090) is amended by adding at the end the 
following:
    ``(i) Convictions.--The Secretary shall not include any question 
about the conviction of an applicant for the possession or sale of 
illegal drugs on the FAFSA (or any other form developed under 
subsection (a)).''.
    (c) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 428(b)(3) (20 U.S.C. 1078(b)(3))--
                    (A) in subparagraph (C), by striking ``485(l)'' and 
                inserting ``485(k)''; and
                    (B) in subparagraph (D), by striking ``485(l)'' and 
                inserting ``485(k)'';
            (2) in section 435(d)(5) (20 U.S.C. 1085(d)(5))--
                    (A) in subparagraph (E), by striking ``485(l)'' and 
                inserting ``485(k)''; and
                    (B) in subparagraph (F), by striking ``485(l)'' and 
                inserting ``485(k)'';
            (3) in section 484 (20 U.S.C. 1091), as amended by section 
        6, by redesignating subsections (s), (t), and (u) as 
        subsections (r), (s), and (t), respectively;
            (4) in section 485 (20 U.S.C. 1092)--
                    (A) by striking subsection (k); and
                    (B) by redesignating subsections (l) and (m) as 
                subsections (k) and (l), respectively; and
            (5) in section 487(e)(2)(B)(ii)(IV) (20 U.S.C. 
        1094(e)(2)(B)(ii)(IV)), by striking ``(l) of section 485'' and 
        inserting ``(k) of section 485''.

SEC. 408. EXTENDING FEDERAL PELL GRANT ELIGIBILITY OF CERTAIN SHORT-
              TERM PROGRAMS.

    (a) In General.--Section 401 (20 U.S.C. 1070a), as amended by 
section 404, is further amended by inserting after subsection (h) the 
following:
    ``(i) Job Training Federal Pell Grant Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible career pathway program.--The term 
                `eligible career pathway program' means a program 
                that--
                            ``(i) meets the requirements of section 
                        484(d)(2);
                            ``(ii) is a program of training services 
                        listed under section 122(d) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3152(d)); and
                            ``(iii) is part of a career pathway, as 
                        defined in section 3 of such Act (29 U.S.C. 
                        3102).
                    ``(B) Job training program.--The term `job training 
                program' means a career and technical education program 
                at an institution of higher education that--
                            ``(i) provides not less than 150, and not 
                        more than 600, clock hours of instructional 
                        time over a period of not less than 8, and not 
                        more than 15, weeks;
                            ``(ii) provides training aligned with the 
                        requirements of employers in the State or local 
                        area, which may include in-demand industry 
                        sectors or occupations, as defined in section 3 
                        of the Workforce Innovation and Opportunity Act 
                        (29 U.S.C. 3102), in the State or local area 
                        (as defined in such section);
                            ``(iii) is a program of training services, 
                        and provided through an eligible provider of 
                        training services, listed under section 122(d) 
                        of such Act (29 U.S.C. 3152(d));
                            ``(iv) provides a student, upon completion 
                        of the program, with a recognized postsecondary 
                        credential, as defined in section 3 of such 
                        Act, that is recognized by employers in the 
                        relevant industry, including credentials 
                        recognized by industry or sector partnerships 
                        in the State or local area where the industry 
                        is located;
                            ``(v) has been determined, by the 
                        institution of higher education, to provide 
                        academic content, an amount of instructional 
                        time, and a recognized postsecondary credential 
                        that are sufficient to--
                                    ``(I) meet the hiring requirements 
                                of potential employers; and
                                    ``(II) satisfy any applicable 
                                educational prerequisite requirement 
                                for professional licensure or 
                                certification, so that the student who 
                                completes the program and seeks 
                                employment qualifies to take any 
                                licensure or certification examination 
                                needed to practice or find employment 
                                in an occupation that the program 
                                prepares students to enter;
                            ``(vi) may include integrated or basic 
                        skills courses; and
                            ``(vii) may be offered as part of an 
                        eligible career pathway program.
            ``(2) In general.--For the award year beginning on July 1, 
        2018, and each subsequent award year, the Secretary shall carry 
        out a program through which the Secretary shall award job 
        training Federal Pell Grants to students in job training 
        programs. Each job training Federal Pell Grant awarded under 
        this subsection shall have the same terms and conditions, and 
        be awarded in the same manner, as a Federal Pell Grant awarded 
        under subsection (a), except as follows:
                    ``(A) A student who is eligible to receive a job 
                training Federal Pell Grant under this subsection is a 
                student who--
                            ``(i) has not yet attained a baccalaureate 
                        degree or postbaccalaureate degree;
                            ``(ii) attends an institution of higher 
                        education;
                            ``(iii) is enrolled, or accepted for 
                        enrollment, in a job training program at such 
                        institution of higher education; and
                            ``(iv) meets all other eligibility 
                        requirements for a Federal Pell Grant (except 
                        with respect to the type of program of study, 
                        as provided in clause (iii)).
                    ``(B) The amount of a job training Federal Pell 
                Grant for an eligible student shall be determined under 
                subsection (b)(1), except that--
                            ``(i) the maximum Federal Pell Grant 
                        awarded under this subsection for an award year 
                        shall be 50 percent of the maximum Federal Pell 
                        Grant awarded under subsection (b)(5) 
                        applicable to that award year; and
                            ``(ii) subsection (b)(4) shall not apply.
            ``(3) Inclusion in total eligibility period.--Any period 
        during which a student receives a job training Federal Pell 
        Grant under this subsection shall be included in calculating 
        the student's period of eligibility for Federal Pell Grants 
        under subsection (c), and any regulations under such subsection 
        regarding students who are enrolled in an undergraduate program 
        on less than a full-time basis shall similarly apply to 
        students who are enrolled in a job training program at an 
        eligible institution on less than a full-time basis.''.
    (b) Additional Safeguards.--Section 496(a)(4) (20 U.S.C. 
1099b(a)(4)) is amended--
            (1) in subparagraph (A), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (B)(ii), by inserting ``and'' after the 
        semicolon; and
            (3) by adding at the end the following:
                    ``(C) if such agency or association has or seeks to 
                include within its scope of recognition the evaluation 
                of the quality of institutions of higher education 
                participating in the job training Federal Pell Grant 
                program under section 401(i), such agency or 
                association shall, in addition to meeting the other 
                requirements of this subpart, demonstrate to the 
                Secretary that, with respect to such job training 
                programs--
                            ``(i) the agency or association's standards 
                        include a process for determining whether the 
                        program provides training aligned with the 
                        requirements of employers in the State or local 
                        area served by the program; and
                            ``(ii) the agency or association requires a 
                        demonstration that the program--
                                    ``(I) has identified each 
                                recognized postsecondary credential 
                                offered and the corresponding industry 
                                or sector partnership that actively 
                                recognizes each credential in the 
                                relevant industry in the State or local 
                                area where the industry is located; and
                                    ``(II) provides the academic 
                                content and amount of instructional 
                                time that is sufficient to--
                                            ``(aa) meet the hiring 
                                        requirements of potential 
                                        employers; and
                                            ``(bb) satisfy any 
                                        applicable educational 
                                        prerequisites for professional 
                                        licensure or certification 
                                        requirements so that the 
                                        student who completes the 
                                        program and seeks employment 
                                        qualifies to take any licensure 
                                        or certification examination 
                                        that is needed to practice or 
                                        find employment in an 
                                        occupation that the program 
                                        prepares students to enter;''.

SEC. 409. PROVIDING FEDERAL PELL GRANTS FOR IRAQ AND AFGHANISTAN 
              VETERAN'S DEPENDENTS.

    (a) Amendments.--Part A of title IV (20 U.S.C. 1070a et seq.) is 
amended--
            (1) in section 401, as amended by section 408, by inserting 
        after subsection (i) the following:
    ``(j) Scholarships for Veteran's Dependents.--
            ``(1) Definition of eligible veteran's dependent.--In this 
        subsection, the term `eligible veteran's dependent' means a 
        dependent or an independent student--
                    ``(A) whose parent or guardian was a member of the 
                Armed Forces of the United States and died as a result 
                of performing military service in Iraq or Afghanistan 
                after September 11, 2001; and
                    ``(B) who, at the time of the parent or guardian's 
                death, was--
                            ``(i) less than 24 years of age; or
                            ``(ii) enrolled at an institution of higher 
                        education on a part-time or full-time basis.
            ``(2) Grants.--
                    ``(A) In general.--The Secretary shall award a 
                Federal Pell Grant, as modified in accordance with the 
                requirements of this subsection, to each eligible 
                veteran's dependent to assist in paying the eligible 
                veteran's dependent's cost of attendance at an 
                institution of higher education.
                    ``(B) Designation.--Federal Pell Grants made under 
                this subsection may be known as `Iraq and Afghanistan 
                Service Grants'.
            ``(3) Prevention of double benefits.--No eligible veteran's 
        dependent may receive a grant under both this subsection and 
        subsection (a).
            ``(4) Terms and conditions.--The Secretary shall award Iraq 
        and Afghanistan Service Grants under this subsection in the 
        same manner and with the same terms and conditions, including 
        the length of the period of eligibility, as the Secretary 
        awards Federal Pell Grants under subsection (a), except that--
                    ``(A) the award rules and determination of need 
                applicable to the calculation of Federal Pell Grants 
                under subsection (a) shall not apply to Iraq and 
                Afghanistan Service Grants;
                    ``(B) the provisions of paragraphs (1)(B) and (3) 
                of subsection (b), and subsection (f), shall not apply;
                    ``(C) the maximum period determined under 
                subsection (c)(5) shall be determined by including all 
                Iraq and Afghanistan Service Grants received by the 
                eligible veteran's dependent, including such Grants 
                received under subpart 10 before the effective date of 
                this subsection; and
                    ``(D) an Iraq and Afghanistan Service Grant to an 
                eligible veteran's dependent for any award year shall 
                equal the maximum Federal Pell Grant available under 
                subsection (b)(5) for that award year, except that an 
                Iraq and Afghanistan Service Grant--
                            ``(i) shall not exceed the cost of 
                        attendance of the eligible veteran's dependent 
                        for that award year; and
                            ``(ii) shall be adjusted to reflect the 
                        attendance by the eligible veteran's dependent 
                        on a less than full-time basis in the same 
                        manner as such adjustments are made for a 
                        Federal Pell Grant under subsection (a).
            ``(5) Estimated financial assistance.--For purposes of 
        determinations of need under part F, an Iraq and Afghanistan 
        Service Grant shall not be treated as estimated financial 
        assistance as described in sections 471(3) and 480(j).''; and
            (2) by striking subpart 10 of part A (20 U.S.C. 1070h).
    (b) Effective Date; Transition.--
            (1) Effective date.--The amendments made by this section 
        shall take effect with respect to the award year immediately 
        following the date of enactment of this Act.
            (2) Transition.--The Secretary shall take such steps as are 
        necessary to transition from the Iraq and Afghanistan Service 
        Grants program under subpart 10 of part A of title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070h), as in effect on 
        the day before the effective date of this section, and the Iraq 
        and Afghanistan Service Grants program under section 401(j) of 
        the Higher Education Act of 1965 (20 U.S.C. 1070a(j)), as 
        amended by this section.

SEC. 410. INCREASING SUPPORT FOR WORKING STUDENTS BY 35 PERCENT.

    (a) Dependent Students.--Section 475(g)(2)(D) (20 U.S.C. 
1087oo(g)(2)(D)) is amended to read as follows:
                    ``(D) an income protection allowance (or a 
                successor amount prescribed by the Secretary under 
                section 478) of $9,010 for academic year 2018-2019;''.
    (b) Independent Students Without Dependents Other Than a Spouse.--
Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to 
read as follows:
                            ``(iv) an income protection allowance (or a 
                        successor amount prescribed by the Secretary 
                        under section 478)--
                                    ``(I) for single or separated 
                                students, or married students where 
                                both are enrolled pursuant to 
                                subsection (a)(2), of $14,010 for 
                                academic year 2018-2019; and
                                    ``(II) for married students where 
                                one is enrolled pursuant to subsection 
                                (a)(2), of $22,460 for academic year 
                                2018-2019;''.
    (c) Independent Students With Dependents Other Than a Spouse.--
Section 477(b)(4) (20 U.S.C. 1087qq(b)(4)) is amended to read as 
follows:
            ``(4) Income protection allowance.--The income protection 
        allowance is determined by the following table (or a successor 
        table prescribed by the Secretary under section 478), for 
        academic year 2018-2019:

                                          ``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
  Family  Size                                          Number in College
----------------------------------------------------------------------------------------------------------------
                                                                                                     For each
   (including           1               2               3               4               5           additional
    student)                                                                                        subtract:
----------------------------------------------------------------------------------------------------------------
      2              $35,470         $29,410                                                           $6,030
      3               44,170          38,130         $32,070
      4               54,540          45,490          42,450         $36,370
      5               64,360          58,280          52,240          46,190         $40,160
      6               75,260          69,210          63,190          57,090          51,070
For each
additional
   add:                8,500                                                                              ''.
----------------------------------------------------------------------------------------------------------------

    (d) Updated Tables and Amounts.--Section 478(b) (20 U.S.C. 
1087rr(b)) is amended--
            (1) in paragraph (1), by striking subparagraphs (A) and (B) 
        and inserting the following:
                    ``(A) In general.--For each academic year after 
                academic year 2018-2019, the Secretary shall publish in 
                the Federal Register a revised table of income 
                protection allowances for the purpose of sections 
                475(c)(4) and 477(b)(4), subject to subparagraphs (B) 
                and (C).
                    ``(B) Table for independent students.--For each 
                academic year after academic year 2018-2019, the 
                Secretary shall develop the revised table of income 
                protection allowances by increasing each of the dollar 
                amounts contained in the table of income protection 
                allowances under section 477(b)(4) by a percentage 
                equal to the estimated percentage increase in the 
                Consumer Price Index (as determined by the Secretary 
                for the most recent calendar year ending prior to the 
                beginning of the academic year for which the 
                determination is being made), and rounding the result 
                to the nearest $10.''; and
            (2) in paragraph (2), by striking ``shall be developed'' 
        and all that follows through the period at the end and 
        inserting ``shall be developed for each academic year after 
        academic year 2018-2019, by increasing each of the dollar 
        amounts contained in such section for academic year 2018-2019 
        by a percentage equal to the estimated percentage increase in 
        the Consumer Price Index (as determined by the Secretary for 
        the most recent calendar year ending prior to the beginning of 
        the academic year for which the determination is being made), 
        and rounding the result to the nearest $10.''.

SEC. 411. INCREASING THE FEDERAL PELL GRANT AUTO-ZERO THRESHOLD.

    Section 479(c) (20 U.S.C. 1087ss(c)) is amended--
            (1) in paragraph (1)(B), by striking ``$23,000'' and 
        inserting ``$34,000'';
            (2) in paragraph (2)(B), by striking ``$23,000'' and 
        inserting ``$34,000''; and
            (3) in the matter following paragraph (2)(B), by striking 
        ``adjusted according to increases in the Consumer Price Index, 
        as defined in section 478(f)'' and inserting ``annually 
        increased by the estimated percentage change in the Consumer 
        Price Index, as defined in section 478(f), for the most recent 
        calendar year ending prior to the beginning of an award year, 
        and rounded to the nearest $1,000''.

SEC. 412. RAISING THE TOTAL SEMESTERS OF FEDERAL PELL GRANT 
              ELIGIBILITY.

    Section 401(c)(5)(A) (20 U.S.C. 1070a(c)(5)(A)), as amended by 
section 405, is further amended by striking ``12'' each place the term 
appears and inserting ``14''.

SEC. 413. CONFORMING AMENDMENTS.

    The Act (20 U.S.C. 1001 et seq.) is amended--
            (1) in section 401A(d)(1)(B)(i) (20 U.S.C. 1070a-
        1(d)(1)(B)(i)), by striking ``section 401(b)(2)(B)'' and 
        inserting ``section 401(b)(2)'';
            (2) in section 402D(d)(1) (20 U.S.C. 1070a-14(d)(1)), by 
        striking ``section 401(b)(2)(A)'' and inserting ``section 
        401(b)(1)'';
            (3) in section 420R(d)(2) (20 U.S.C. 1070h(d)(2)), by 
        striking ``subsection (b)(1), the matter following subsection 
        (b)(2)(A)(v),'';
            (4) in section 435(a)(5)(A)(i)(I) (20 U.S.C. 
        1085(a)(5)(A)(i)(I)), by striking ``under section 
        401(b)(2)(A)'' and inserting ``, as appropriate, under section 
        401(b)(2)(A) (as in effect on the day before the effective date 
        of the Pell Grant Preservation and Expansion Act) or section 
        401(b)(1)'';
            (5) in section 483(e)(3)(A)(ii) (20 U.S.C. 
        1090(e)(3)(A)(ii)), by striking ``section 401(b)(2)(A)'' and 
        inserting ``section 401(b)(1)'';
            (6) in section 485E(b)(1)(A) (20 U.S.C. 1092f(b)(1)(A)), by 
        striking ``section 401(b)(2)(A)'' and inserting ``section 
        401(b)(1)''; and
            (7) in section 894(f)(2)(C)(ii)(I) (20 U.S.C. 
        1161y(f)(2)(C)(ii)(I)), by striking ``section 401(b)(2)(A)'' 
        and inserting ``section 401(b)(1)''.

SEC. 414. EFFECTIVE DATE.

    Except as otherwise provided, this title, and the amendments made 
by this title, shall take effect beginning on July 1, 2018, and shall 
apply to grant and award determinations made under title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) beginning with 
the 2018-2019 award year.

                          DIVISION B--HOUSING

                TITLE V--COMMON SENSE HOUSING INVESTMENT

SEC. 501. CONGRESSIONAL FINDINGS.

    The Congress finds the following:
            (1) Two principal Federal housing goals are to increase the 
        rate of home ownership and make rental housing affordable for 
        low-income families and individuals.
            (2) Much more progress has been achieved on the first goal 
        than on the second goal.
            (3) The Federal Government devotes more than three times 
        the amount of budgetary resources to supporting home ownership 
        than it devotes to making affordable rental housing available.
            (4) The burden of housing costs is more pronounced among 
        renters than among owners.
            (5) There is a shortage of more than 7 million homes 
        affordable to families in the bottom 20 percent of income, 
        meaning that there are only 30 affordable units for every 100 
        families.
            (6) Only one in four families that qualify for rental 
        housing assistance receives benefits.
            (7) Housing assistance waiting lists can be 10 years long 
        and in many communities are closed.
            (8) The shortage of rental homes that are affordable for 
        extremely low-income households to be the principal cause of 
        homelessness in the United States.
            (9) Public housing facilities in the United States have 
        more than $26 billion in deferred maintenance after decades of 
        neglect which results in a loss of 10,000 units each year.
            (10) The low-income housing tax credit successfully 
        provides 100,000 units of affordable housing every year.
            (11) Every tax reform commission has recommended capping 
        the mortgage interest deduction and converting it to a fairer 
        and simpler credit.
            (12) More than 75 percent of the value of the mortgage 
        interest deduction inures to the benefit of the top 20 percent 
        of earners.
            (13) Fewer than half of tax filers with a home mortgage 
        claim the mortgage interest deduction.
            (14) Only 9 percent of rural tax filers claim the mortgage 
        interest deduction.
            (15) Ninety-six percent of homes sold between 2005 and 2011 
        sold for less than $500,000.
            (16) A better approach that provides equitable benefits for 
        families who buy homes, enables more low- and moderate-income 
        homeowners to receive a benefit, and invests in affordable 
        rental housing to assist those who used to be homeless or who 
        have extremely or very low incomes is needed to strengthen 
        families and communities.

SEC. 502. REPLACEMENT OF MORTGAGE INTEREST DEDUCTION WITH MORTGAGE 
              INTEREST CREDIT.

    (a) Nonrefundable Credit.--Subpart A of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to 
nonrefundable personal credits) is amended by inserting after section 
25D the following new section:

``SEC. 25E. INTEREST ON INDEBTEDNESS SECURED BY QUALIFIED RESIDENCE.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 15 percent of the qualified 
residence interest paid or accrued during the taxable year.
    ``(b) Qualified Residence Interest.--For purposes of this section--
            ``(1) In general.--The term `qualified residence interest' 
        means interest which is paid or accrued during the taxable year 
        on--
                    ``(A) acquisition indebtedness with respect to any 
                qualified residence of the taxpayer, or
                    ``(B) home equity indebtedness with respect to any 
                qualified residence of the taxpayer.
        For purposes of the preceding sentence, the determination of 
        whether any property is a qualified residence of the taxpayer 
        shall be made as of the time the interest is accrued.
            ``(2) Overall limitation.--The aggregate amount of 
        indebtedness taken into account for any period for purposes of 
        this section shall not exceed $500,000 ($250,000 in the case of 
        a married individual filing a separate return).
            ``(3) Acquisition indebtedness.--The term `acquisition 
        indebtedness' means any indebtedness which--
                    ``(A) is incurred in acquiring, constructing, or 
                substantially improving any qualified residence of the 
                taxpayer, and
                    ``(B) is secured by such residence.
        Such term also includes any indebtedness secured by such 
        residence resulting from the refinancing of indebtedness 
        meeting the requirements of the preceding sentence (or this 
        sentence), but only to the extent the amount of the 
        indebtedness resulting from such refinancing does not exceed 
        the amount of the refinanced indebtedness.
            ``(4) Home equity indebtedness.--
                    ``(A) In general.--The term `home equity 
                indebtedness' means any indebtedness (other than 
                acquisition indebtedness) secured by a qualified 
                residence to the extent the aggregate amount of such 
                indebtedness does not exceed--
                            ``(i) the fair market value of such 
                        qualified residence, reduced by
                            ``(ii) the amount of acquisition 
                        indebtedness with respect to such residence.
                    ``(B) Limitation.--The aggregate amount treated as 
                home equity indebtedness for any period shall not 
                exceed $100,000 ($50,000 in the case of a married 
                individual filing a separate return).
    ``(c) Special Rules.--For purposes of this section--
            ``(1) Qualified residence.--The term `qualified residence' 
        means--
                    ``(A) the principal residence (within the meaning 
                of section 121) of the taxpayer, and
                    ``(B) 1 other residence of the taxpayer which is 
                selected by the taxpayer for purposes of this 
                subsection for the taxable year and which is used by 
                the taxpayer as a residence (within the meaning of 
                section 280A(d)(1)).
            ``(2) Married individuals filing separate returns.--If a 
        married couple does not file a joint return for the taxable 
        year--
                    ``(A) such couple shall be treated as 1 taxpayer 
                for purposes of paragraph (1), and
                    ``(B) each individual shall be entitled to take 
                into account 1 residence unless both individuals 
                consent in writing to 1 individual taking into account 
                the principal residence and 1 other residence.
            ``(3) Residence not rented.--For purposes of paragraph 
        (1)(B), notwithstanding section 280A(d)(1), if the taxpayer 
        does not rent a dwelling unit at any time during a taxable 
        year, such unit may be treated as a residence for such taxable 
        year.
            ``(4) Unenforceable security interests.--Indebtedness shall 
        not fail to be treated as secured by any property solely 
        because, under any applicable State or local homestead or other 
        debtor protection law in effect on August 16, 1986, the 
        security interest is ineffective or the enforceability of the 
        security interest is restricted.
            ``(5) Special rules for estates and trusts.--For purposes 
        of determining whether any interest paid or accrued by an 
        estate or trust is qualified residence interest, any residence 
        held by such estate or trust shall be treated as a qualified 
        residence of such estate or trust if such estate or trust 
        establishes that such residence is a qualified residence of a 
        beneficiary who has a present interest in such estate or trust 
        or an interest in the residuary of such estate or trust.
    ``(d) Coordination With Deduction.--In the case of any taxable year 
beginning in calendar years 2018 through 2022, the taxpayer may elect 
to apply this section in lieu of the deduction under section 163 for 
qualified residence interest.''.
    (b) Phaseout of Deduction.--Section 163(h) of such Code is amended 
by adding at the end the following new paragraph:
            ``(5) Phaseout.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2017, the amount 
                otherwise allowable as a deduction by reason of 
                paragraph (2)(D) shall be the applicable percentage of 
                such amount.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage shall be 
                determined in accordance with the following table:


------------------------------------------------------------------------
                                                          The applicable
     ``For taxable years beginning in calendar year:         percentage
                                                                is:
------------------------------------------------------------------------
2018....................................................            100%
2019....................................................             80%
2020....................................................             60%
2021....................................................             40%
2022....................................................             20%
2023 and thereafter.....................................          0%.''.
------------------------------------------------------------------------

    (c) Phasedown of Mortgage Limit.--Subparagraph (B) of section 
163(h)(3) of such Code is amended by adding at the end the following:
                            ``(iii) Phasedown.--
                                    ``(I) In general.--In the case of 
                                any taxable year beginning in calendar 
                                years 2018 through 2022, clause (ii) 
                                shall be applied by substituting the 
                                amounts specified in the table in 
                                subclause (II) of this clause for 
                                `$1,000,000' and `$500,000', 
                                respectively.
                                    ``(II) Phasedown amounts.--For 
                                purposes of subclause (I), the amounts 
                                specified in this subclause for a 
                                taxable year shall be the amounts 
                                specified in the following table:


------------------------------------------------------------------------
                                                   Amount       Amount
   ``For taxable years beginning in calendar    substituted  substituted
                     year:                           for          for
                                                $1,000,000:   $500,000:
------------------------------------------------------------------------
2018..........................................   $1,000,000     $500,000
2019..........................................     $900,000     $450,000
2020..........................................     $800,000     $400,000
2021..........................................     $700,000     $350,000
2022..........................................     $600,000  $300,000.''
                                                                       .
------------------------------------------------------------------------

    (d) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after section 25D the following new item:

``Sec. 25E. Interest on indebtedness secured by qualified residence.''.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to interest paid or accrued after December 31, 2017.

SEC. 503. DEDUCTION ALLOWED FOR INTEREST AND TAXES RELATING TO LAND FOR 
              DWELLING PURPOSES OWNED OR LEASED BY COOPERATIVE HOUSING 
              CORPORATIONS.

    (a) In General.--Subparagraph (B) of section 216(b)(1) of the 
Internal Revenue Code of 1986 is amended by inserting ``or land,'' 
after ``building,''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts paid or accrued after December 31, 2016.

SEC. 504. USE OF MORTGAGE INTEREST SAVINGS TO INCREASE LOW-INCOME 
              HOUSING TAX CREDIT.

    (a) In General.--Subclause (I) of section 42(h)(3)(C)(ii) of the 
Internal Revenue Code of 1986 is amended by striking ``$1.75'' and 
inserting ``$2.70''.
    (b) Inflation Adjustment.--Subparagraph (H) of section 42(h)(3) of 
such Code is amended to read as follows:
                    ``(H) Cost-of-living adjustment.--
                            ``(i) In general.--In the case of a 
                        calendar year after 2016, the $2,000,000 amount 
                        in subparagraph (C) shall be increased by an 
                        amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year by 
                                substituting `calendar year 2001' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(ii) Per capita amount.--In the case of a 
                        calendar year after 2017, the $2.70 amount in 
                        subparagraph (C) shall be increased by an 
                        amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year by 
                                substituting `calendar year 2016' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(iii) Rounding.--
                                    ``(I) In the case of the $2,000,000 
                                amount, any increase under clause (i) 
                                which is not a multiple of $5,000 shall 
                                be rounded to the next lowest multiple 
                                of $5,000.
                                    ``(II) In the case of the $2.70 
                                amount, any increase under clause (ii) 
                                which is not a multiple of 5 cents 
                                shall be rounded to the next lowest 
                                multiple of 5 cents.''.
    (c) Eligible Basis.--Clause (i) of section 42(d)(5)(B) of such Code 
is amended by striking ``and'' at the end of subclause (I), by striking 
the period at the end of subclause (II) and inserting ``, and'', and by 
adding at the end the following:
                                    ``(III) in the case of a building 
                                containing units which are designated 
                                to serve extremely low-income 
                                households by the State housing credit 
                                agency and require the increase in 
                                credit under this subparagraph in order 
                                for such building to be financially 
                                feasible as part of a qualified low-
                                income housing project, the eligible 
                                basis of such building determined by 
                                the portion of such units shall be 150 
                                percent of such basis determined 
                                without regard to this subparagraph.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to allocations made in calendar years beginning after December 
31, 2016.

SEC. 505. USE OF MORTGAGE INTEREST SAVINGS FOR AFFORDABLE HOUSING 
              PROGRAMS.

    (a) Use of Savings.--For each year, the Secretary of the Treasury 
shall determine the amount of revenues accruing to the general fund of 
the Treasury by reason of the enactment of section 602 that remain 
after use of such revenues in accordance with section 604 and shall 
credit an amount equal to such remaining revenues as follows:
            (1) Housing trust fund.--The Secretary shall credit the 
        Housing Trust Fund established under section 1338 of the 
        Federal Housing Enterprises Financial Safety and Soundness Act 
        of 1992 (12 U.S.C. 4568) with an amount equal to 60 percent of 
        the amount of such remaining revenues.
            (2) Section 8 rental assistance.--The Secretary shall 
        credit an amount equal to 30 percent of the amount of such 
        remaining revenues to the Secretary of Housing and Urban 
        Development for use only for providing tenant- and project-
        based rental assistance under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f).
            (3) Public housing capital fund.--The Secretary shall 
        credit an amount equal to 10 percent of the amount of such 
        remaining revenues to the Public Housing Capital Fund under 
        section 9(d) of the United States Housing Act of 1937 (42 
        U.S.C. 1437g(d)).
    (b) Changes to Housing Trust Fund.--Not later than the expiration 
of the 6-month period beginning on the date of the enactment of this 
Act, the Secretary of Housing and Urban Development shall revise the 
regulations relating to the Housing Trust Fund established under 
section 1338 of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4568) to provide that such section is 
carried out with the maximum amount of flexibility possible while 
complying with such section, which shall include revising such 
regulations--
            (1) to increase the limitation on amounts from the Fund 
        that are available for use for operating assistance for 
        housing;
            (2) to allow public housing agencies and tribally 
        designated housing entities to be recipient of grants amounts 
        from the Fund that are allocated to a State or State designated 
        entity; and
            (3) eliminate the applicability of rules for the Fund that 
        are based on the HOME Investment Partnerships Act (42 U.S.C. 
        1721 et seq.).

       TITLE VI--LOW-INCOME HOUSING TAX CREDIT FOR HOMELESS YOUTH

SEC. 601. STUDENTS WHO WERE HOMELESS YOUTHS OR HOMELESS VETERANS 
              PERMITTED TO OCCUPY LOW-INCOME HOUSING UNITS.

    (a) In General.--Section 42(i)(3)(D)(i) of the Internal Revenue 
Code of 1986 is amended by redesignating subclauses (II) and (III) as 
subclauses (IV) and (V) and inserting after subclause (I) the following 
new subclauses:
                                    ``(II) a student who was (prior to 
                                occupying such unit) a homeless child 
                                or youth (as defined in section 725 of 
                                the McKinney-Vento Homeless Assistance 
                                Act),
                                    ``(III) a student who was (prior to 
                                occupying such unit) a homeless veteran 
                                (as defined in section 2002 of title 
                                38, United States Code),''.
    (b) Effective Date.--The amendments made by this section shall 
apply to determinations made on or after the date of the enactment of 
this Act.

SEC. 602. RENTERS TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. RENTERS CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of a 
qualified credit recipient, the renters credit for any taxable year is 
an amount equal to the sum of the renters credit amounts allocated to 
such qualified credit recipient under this section for months ending 
during the taxable year.
    ``(b) Renters Credit Amount.--
            ``(1) In general.--For purposes of this section, the term 
        `renters credit amount' means the rent reduction amount with 
        respect to each rental unit which is occupied by a qualified 
        renter.
            ``(2) Qualified renter.--For purposes of this section, the 
        term `qualified renter' means a family unit with income not 
        greater than the higher of--
                    ``(A) 60 percent of local median income, or
                    ``(B) 150 percent of the Federal poverty line,
        in each case as determined by the Secretary of Housing and 
        Urban Development for a family of the size involved.
            ``(3) Rent reduction amount.--For purposes of this 
        section--
                    ``(A) In general.--The term `rent reduction amount' 
                is the amount by which the fair market rent for the 
                unit involved exceeds the rent charged to the qualified 
                renter.
                    ``(B) Limitation.--The rent reduction amount taken 
                into account under this section shall not exceed the 
                excess of--
                            ``(i) the rent charged to the qualified 
                        renter (or, if lower, specified modest rent), 
                        over
                            ``(ii) 30 percent of the qualified renters 
                        income (prorated monthly) as determined by the 
                        renters credit agency of the State.
                    ``(C) Specified modest rent.--The term `specified 
                modest rent' means--
                            ``(i) the Fair Market Rent determined by 
                        the Secretary of Housing and Urban Development 
                        for the ZIP code (if the unit is located in a 
                        metropolitan area) or non-metropolitan county, 
                        or
                            ``(ii) such amount as may be determined by 
                        the State with respect to the area in which the 
                        unit is located if such amount is within 25 
                        percent of the amount determined under clause 
                        (i) with respect to such unit.
                    ``(D) Utilities.--The renters credit agency of the 
                State may determine whether and how to take into 
                account the cost of utilities in determining the rent 
                reduction amount.
                    ``(E) Credit adjustment.--The renters credit agency 
                of the State may elect to increase the rent reduction 
                amount such that such amount does not exceed 110 
                percent of such amount as determined without regard to 
                this subparagraph.
    ``(c) Qualified Credit Recipient.--For purposes of this section, 
the term `qualified credit recipient' means, with respect to any rental 
unit occupied by a qualified renter, the owner of such unit but only to 
the extent of the renters credit amounts which have been allocated to 
such person by the renters credit agency. In lieu of the owner of the 
unit, the renters credit agency may treat the lender of any loan to 
such owner as the qualified credit recipient if such unit secures such 
loan.
    ``(d) Allocations by Renters Credit Agency to Credit Recipients.--
            ``(1) In general.--The renters credit agency may make 
        allocations of renters credit amounts to qualified credit 
        recipients under this section on the basis of--
                    ``(A) the identity of the qualified renter, such 
                that the renters credit amount is allowed to the owner 
                of any rental unit which such qualified renter occupies 
                (or the lender referred to in subsection (c)) for any 
                month, or
                    ``(B) one or more rental units, such that the 
                renters credit amount is allowed to the owner of such 
                units (or the lender referred to in subsection (c)) for 
                such months as such units are occupied by a qualified 
                renter.
            ``(2) Restrictions on unit based allocations.--A renters 
        credit agency may make allocations of renters credit as 
        described in paragraph (1)(B) only if--
                    ``(A) such units are part of a project or building 
                in which not more than 40 percent of the units receive 
                allocations under this section (the Secretary may 
                provide such exceptions to the requirement of this 
                subparagraph as the Secretary determines appropriate 
                for small buildings or buildings with respect to which 
                more than 40 percent of the units were previously 
                subsidized under other Federal programs), and
                    ``(B) the Secretary has approved a mobility plan 
                submitted by such renters credit agency which provides 
                for an adequate method to ensure that qualified renters 
                have the ability to move from a unit which is eligible 
                for credit under this section without losing the rent 
                subsidy provided by this section.
    ``(e) Allocations of Credit Authority to State Agencies.--
            ``(1) Renters credit dollar amount for agencies.--
                    ``(A) State limitation.--The aggregate credit 
                amounts which a renters credit agency may allocate for 
                any calendar year is the portion of the State renters 
                credit ceiling allocated under this paragraph for such 
                calendar year to such agency.
                    ``(B) State ceiling initially allocated to state 
                housing credit agencies.--Except as provided in 
                subparagraphs (D) and (E), the State renters credit 
                ceiling for each calendar year shall be allocated to 
                the renters credit agency of such State. If there is 
                more than 1 renters credit agency of a State, all such 
                agencies shall be treated as a single agency.
                    ``(C) State renters credit ceiling.--The State 
                renters credit ceiling applicable to any State and any 
                calendar year shall be an amount equal to the sum of--
                            ``(i) the unused State renters credit 
                        ceiling (if any) of such State for the 
                        preceding calendar year,
                            ``(ii) the greater of--
                                    ``(I) $17.50 multiplied by the 
                                State population, or
                                    ``(II) $20,000,000,
                            ``(iii) the amount of State renters credit 
                        ceiling returned in the calendar year, plus
                            ``(iv) the amount (if any) allocated under 
                        subparagraph (D) to such State by the 
                        Secretary.
                For purposes of clause (i), the unused State renters 
                credit ceiling for any calendar year is the excess (if 
                any) of the sum of the amounts described in clauses 
                (ii) through (iv) over the aggregate renters credit 
                dollar amount allocated for such year.
                    ``(D) Unused renters credit carryovers allocated 
                among certain states.--
                            ``(i) In general.--The unused renters 
                        credit carryover of a State for any calendar 
                        year shall be assigned to the Secretary for 
                        allocation among qualified States for the 
                        succeeding calendar year.
                            ``(ii) Unused renters credit carryover.--
                        For purposes of this subparagraph, the unused 
                        renters credit carryover of a State for any 
                        calendar year is the excess (if any) of--
                                    ``(I) the unused State renters 
                                credit ceiling for the year preceding 
                                such year, over
                                    ``(II) the aggregate renters credit 
                                dollar amount allocated for such year.
                            ``(iii) Formula for allocation of unused 
                        housing credit carryovers among qualified 
                        states.--The amount allocated under this 
                        subparagraph to a qualified State for any 
                        calendar year shall be the amount determined by 
                        the Secretary to bear the same ratio to the 
                        aggregate unused renters credit carryovers of 
                        all States for the preceding calendar year as 
                        such State's population for the calendar year 
                        bears to the population of all qualified States 
                        for the calendar year. For purposes of the 
                        preceding sentence, population shall be 
                        determined in accordance with section 146(j).
                            ``(iv) Qualified state.--For purposes of 
                        this subparagraph, the term `qualified State' 
                        means, with respect to a calendar year, any 
                        State--
                                    ``(I) which allocated its entire 
                                State renters credit ceiling for the 
                                preceding calendar year, and
                                    ``(II) for which a request is made 
                                (not later than May 1 of the calendar 
                                year) to receive an allocation under 
                                clause (iii).
                    ``(E) Application of certain rules.--For purposes 
                of this paragraph, rules similar to the rules of 
                subparagraphs (E), (F), and (G) of section 42(h)(3) 
                shall apply.
                    ``(F) Inflation adjustment.--
                            ``(i) In general.--In the case of a 
                        calendar year after 2017, the $20,000,000 and 
                        $17.50 amounts in subparagraph (C) shall each 
                        be increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year by 
                                substituting `calendar year 2001' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(ii) Rounding.--
                                    ``(I) In the case of the 
                                $20,000,000 amount, any increase under 
                                clause (i) which is not a multiple of 
                                $50,000 shall be rounded to the next 
                                lowest multiple of $50,000.
                                    ``(II) In the case of the $17.50 
                                amount, any increase under clause (i) 
                                which is not a multiple of 50 cents 
                                shall be rounded to the next lowest 
                                multiple of 50 cents.
    ``(f) Other Definitions.--For purposes of this section--
            ``(1) Renters credit agency.--The term `renters credit 
        agency' means, with respect to any State, the housing credit 
        agency of such State (as defined in section 42(h)(8)(A)) or 
        such other agency as is authorized to carry out the activities 
        of the renters credit agency under this section.
            ``(2) Possessions treated as states.--The term `State' 
        includes a possession of the United States.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section.''.
    (b) Credit To Be Part of General Business Credit.--
            (1) In general.--Subsection (b) of section 38 of such Code 
        is amended by striking ``plus'' at the end of paragraph (35), 
        by striking the period at the end of paragraph (36) and 
        inserting ``, plus'', and by adding at the end the following 
        new paragraph:
            ``(37) the renters credit determined under section 
        45S(a).''.
            (2) Credit allowable against alternative minimum tax.--
        Subparagraph (B) of section 38(c)(4) of such Code is amended by 
        redesignating clauses (vii) through (ix) as clauses (viii) 
        through (x), respectively, and by inserting after clause (vi) 
        the following new clause:
                            ``(vii) the credit determined under section 
                        45S,''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45S. Renters credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to allocations made for calendar years after 2016 and to taxable 
years ending after December 31, 2016.

                         DIVISION C--NUTRITION

  TITLE VII--IMPROVING TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM

SEC. 701. REFERENCES.

    Except as otherwise expressly provided in this title, wherever in 
this title an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the amendment or repeal 
shall be considered to be made to a section or other provision of the 
Social Security Act.

SEC. 702. STATE PLANS REQUIRED TO ADDRESS WHETHER AND HOW STATES WILL 
              PROVIDE ASSISTANCE TO NEEDIEST GEOGRAPHIC AREAS.

    Section 402(a)(1)(A)(i) (42 U.S.C. 602(a)(1)(A)(i)) is amended by 
inserting ``, including whether and how the State will give priority to 
providing benefits and services in areas of the State with the greatest 
need (such as areas with the greatest unemployment rates, the greatest 
poverty rates, and the least job opportunity to population ratios)'' 
before the period.

SEC. 703. FUNDING OF THE TANF PROGRAM.

    (a) State Family Assistance Grant.--
            (1) In general.--Section 403(a)(1) (42 U.S.C. 603(a)(1)) is 
        amended--
                    (A) in subparagraph (A), by striking ``fiscal year 
                2012'' and inserting ``fiscal year 2013 and each 
                succeeding fiscal year''; and
                    (B) by striking subparagraphs (B) and (C) and 
                inserting the following:
                    ``(B) State family assistance grant.--
                            ``(i) In general.--The State family 
                        assistance grant payable to a State for a 
                        fiscal year shall be the greater of--
                                    ``(I) the adjusted basic block 
                                grant, plus the amount required to be 
                                paid to the State under paragraph (3) 
                                (as in effect on September 30, 2010) 
                                for fiscal year 2010; or
                                    ``(II) the amount required to be 
                                paid to the State under this paragraph 
                                for the preceding fiscal year.
                            ``(ii) Adjusted basic block grant.--In 
                        clause (i), the term `adjusted block grant' 
                        means, with respect to a State, the product 
                        of--
                                    ``(I) the amount required to be 
                                paid to the State under this paragraph 
                                for fiscal year 2010 (determined 
                                without regard to any reduction 
                                pursuant to section 409 or 412(a)(1));
                                    ``(II) 1.00, plus the percentage 
                                (if any) by which the average of the 
                                CPI for the 12-month period ending with 
                                June of the preceding fiscal year 
                                exceeds the average of the CPI for the 
                                12-month period ending with June 1996, 
                                expressed as a decimal; and
                                    ``(III) 1.00, plus the percentage 
                                (if any) by which the most recent 
                                estimate by the Bureau of the Census of 
                                the population of the State that has 
                                not attained 18 years of age exceeds 
                                the most recent estimate by the Bureau 
                                of the Census of that population as of 
                                July 1, 1996, expressed as a decimal.
                            ``(iii) CPI defined.--In clause (ii), the 
                        term `CPI' means the last Consumer Price Index 
                        for All Urban Consumers published by the 
                        Department of Labor for the period involved.
                    ``(C) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated such sums as are 
                necessary for grants under this paragraph for each 
                fiscal year.''.
            (2) Conforming amendment to eliminate supplemental grants 
        for population increases in certain states.--Section 403(a) (42 
        U.S.C. 603(a)) is amended by striking paragraph (3).
    (b) Penalty for Failure To Maintain Effort Adjusted for 
Inflation.--Section 409(a)(7) (42 U.S.C. 609(a)(7)) is amended--
            (1) in subparagraph (A), by inserting ``the inflation-
        adjusted'' before ``historic State expenditures''; and
            (2) in subparagraph (B), by redesignating clauses (iii) 
        through (v) as clauses (iv) through (vi), respectively, and 
        inserting after clause (ii) the following:
                            ``(iii) Inflation-adjusted historic state 
                        expenditures.--The term `inflation-adjusted 
                        historic State expenditures' means, with 
                        respect to a fiscal year--
                                    ``(I) historic State expenditures; 
                                multiplied by
                                    ``(II) 1.00, plus (in the case of 
                                fiscal year 2018 or any succeeding 
                                fiscal year) the percentage (if any) by 
                                which the average of the CPI (as 
                                defined in section 403(a)(1)(B)(iii)) 
                                for the 12-month period ending with 
                                June of the preceding fiscal year 
                                exceeds the average of the CPI (as so 
                                defined) for the 12-month period ending 
                                with June 2016, expressed as a 
                                decimal.''.
    (c) Modification of Contingency Fund.--
            (1) In general.--Section 403(b) (42 U.S.C. 603(b)) is 
        amended by striking all that follows paragraph (1) and 
        inserting the following:
            ``(2) Grants.--
                    ``(A) In general.--The Secretary shall make a grant 
                to each eligible State and each Indian tribe that is an 
                economically needy entity for a calendar quarter, in an 
                amount equal to 80 percent of the amount (if any) by 
                which the total amount of relevant expenditures of the 
                entity for the quarter exceeds the total amount of the 
                relevant expenditures of the entity for the 
                corresponding quarter in the base year of the entity, 
                subject to paragraph (2).
                    ``(B) Limitation.--The total amount payable to an 
                entity under this subsection for a fiscal year shall 
                not exceed an amount equal to 25 percent of the amount 
                payable to the entity--
                            ``(i) if the entity is a State, under 
                        section 403(a)(1) for the fiscal year; or
                            ``(ii) if the entity is an Indian tribe, 
                        under section 412(a)(1) for the fiscal year.
            ``(3) Definitions.--In paragraph (2):
                    ``(A) Economically needy entity.--The term 
                `economically needy entity' means an entity with 
                respect to a calendar quarter--
                            ``(i) if the seasonally adjusted average 
                        unemployment rate with respect to the entity 
                        for the quarter or any of the preceding 4 
                        calendar quarters exceeds 6.5 percent; or
                            ``(ii) in the case that the unemployment 
                        rate information described in clause (i) is not 
                        available with respect to the entity, if the 
                        entity meets such qualifications as the 
                        Secretary, in consultation with the Secretary 
                        of Labor, shall, by regulation, prescribe.
                    ``(B) Base year.--The term `base year' means, with 
                respect to an entity, and a calendar quarter in a 
                fiscal year--
                            ``(i) except as provided in clause (ii), 
                        whichever of the 2 fiscal years most recently 
                        preceding the first fiscal year of the most 
                        recent contingency fund eligibility period for 
                        the entity, is the fiscal year in which the 
                        relevant expenditures of the entity were the 
                        lesser; or
                            ``(ii) if the first year of the period 
                        referred to in clause (i) is fiscal year 2018, 
                        whichever of fiscal year 2007 or 2008 is the 
                        fiscal year in which the relevant expenditures 
                        of the entity were the lesser.
                    ``(C) Contingency fund eligibility period.--The 
                term `contingency fund eligibility period' means, with 
                respect to an entity, a period of 1 or more consecutive 
                calendar quarters for which the entity is an 
                economically needy entity.
                    ``(D) Relevant expenditures.--
                            ``(i) In general.--The term `relevant 
                        expenditures' means expenditures--
                                    ``(I) for assistance under the 
                                program funded under this part of the 
                                entity (including, in the case of a 
                                State, any qualified State expenditures 
                                (as defined in section 409(a)(7)(B)(i)) 
                                and any expenditures under any other 
                                State program funded by such 
                                expenditures);
                                    ``(II) for child care;
                                    ``(III) for subsidized employment 
                                under the program funded under this 
                                part of the entity (including, in the 
                                case of a State, such expenditures 
                                under any other State program funded by 
                                qualified State expenditures (as 
                                defined in section 409(a)(7)(B)(i))), 
                                other than expenditures made using 
                                Federal funds or with respect to which 
                                the entity received a grant made under 
                                paragraph (3) of this subsection; and
                                    ``(IV) for administrative costs 
                                associated with making the expenditures 
                                referred to in the preceding subclauses 
                                of this clause.
                            ``(ii) Child care expenditures.--For 
                        purposes of clause (i), expenditures for child 
                        care consist of the following:
                                    ``(I) Amounts transferred under 
                                section 404(d)(1)(B).
                                    ``(II) Expenditures for child care 
                                assistance from Federal funds provided 
                                under this part.
                                    ``(III) In the case of an entity 
                                that is a State, expenditures for child 
                                care assistance that are qualified 
                                State expenditures (as defined in 
                                section 409(a)(7)(B)(i)), but only to 
                                the extent exceeding the total 
                                expenditures of the State (other than 
                                from Federal funds) for child care in 
                                fiscal year 1994 or 1995 (whichever is 
                                the greater).
                            ``(iii) Authority to collect and adjust 
                        data.--In determining the amount of the 
                        expenditures of a State for basic assistance, 
                        child care, and subsidized employment, during 
                        any period for which the State requests funds 
                        under this subsection, and during the base year 
                        of the State, the Secretary may make 
                        appropriate adjustments to the data, on a 
                        State-by-State basis, to ensure that the data 
                        are comparable with respect to the groups of 
                        families served and the types of aid provided. 
                        The Secretary may develop a mechanism for 
                        collecting expenditure data, including 
                        procedures which allow States to make 
                        reasonable estimates, and may set deadlines for 
                        making revisions to the data.
            ``(4) Use of grant.--Each State to which a grant is made 
        under this subsection shall use the grant to serve areas of the 
        State with the greatest need (as referred to in section 
        402(a)(1)(A)).
            ``(5) Appropriation.--
                    ``(A) In general.--Out of any funds in the Treasury 
                of the United States not otherwise appropriated, there 
                are appropriated for payment to the Fund--
                            ``(i) $2,500,000,000 for fiscal year 2018; 
                        and
                            ``(ii) for each succeeding fiscal year, the 
                        amount appropriated under this paragraph for 
                        the then preceding fiscal year, increased by 
                        the percentage (if any) by which the amount 
                        appropriated under section 403(a)(1) for the 
                        fiscal year involved exceeds the amount 
                        appropriated under such section for the then 
                        preceding fiscal year.
                    ``(B) Availability.--Amounts made available under 
                this paragraph for a fiscal year shall remain available 
                until expended.
            ``(6) Actions to be taken in anticipation of exhaustion of 
        fund.--The Secretary shall monitor the amount in, and the rate 
        at which amounts are paid from, the Fund, and if the Secretary 
        determines that the Fund will be exhausted within 6 months, the 
        Secretary shall--
                    ``(A) notify the Congress of the determination; and
                    ``(B) develop and communicate to each State and 
                Indian tribe that is an economically needy entity as of 
                the date of the determination, the procedure for 
                allocating amounts in the Fund among such entities.''.
            (2) Elimination of penalty for failure of state receiving 
        amounts from contingency fund to maintain 100 percent of 
        historic effort.--
                    (A) In general.--Section 409(a) (42 U.S.C. 609(a)) 
                is amended by striking paragraph (10) and redesignating 
                paragraphs (11) through (16) as paragraphs (10) through 
                (15), respectively.
                    (B) Conforming amendments.--Section 409 (42 U.S.C. 
                609) is amended in each of subsections (b)(2) and 
                (c)(4), by striking ``(10), (12), or (13)'' and 
                inserting ``(11), or (12)''.
            (3) Conforming amendment.--Section 409(a)(3)(C) (42 U.S.C. 
        609(a)(3)(C)) is amended by striking ``needy State (as defined 
        in section 403(b)(6))'' and inserting ``economically needy 
        entity (as defined in section 403(b)(3)(A))''.
            (4) Amounts provided to territories from the contingency 
        fund to be disregarded for purposes of limitation on payments 
        to the territories.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) 
        is amended by inserting ``403(b),'' before ``406,''.
    (d) Matching Grants for Subsidized Employment.--
            (1) In general.--Section 403(a) (42 U.S.C. 603(a)), as 
        amended by subsection (a)(2) of this section, is further 
        amended by inserting after paragraph (2) the following:
            ``(3) Matching grants for subsidized employment.--
                    ``(A) In general.--The Secretary shall make a 
                grant--
                            ``(i) to each eligible State that is 1 of 
                        the 50 States or the District of Columbia, for 
                        each fiscal year for which the State is an MOE 
                        State; and
                            ``(ii) to each State that is not 1 of the 
                        50 States or the District of Columbia, and to 
                        each Indian tribe, for each fiscal year for 
                        which the State or tribe, as the case may be, 
                        meets such terms and conditions as the 
                        Secretary shall, by regulation, establish, 
                        which shall be comparable to the terms and 
                        conditions under which grants are made under 
                        clause (i).
                    ``(B) MOE state.--In subparagraph (A), the term 
                `MOE State' means a State if the qualified expenditures 
                of the State (as defined in section 409(a)(7)(B)(i)) 
                for the fiscal year exceeds the applicable percentage 
                (as defined in clause (ii) of such section) of 
                inflation-adjusted historic State expenditures (as 
                defined in clause (iii) of such section) of the State 
                with respect to the fiscal year.
                    ``(C) Amount of grant.--
                            ``(i) States.--
                                    ``(I) In general.--The grant to be 
                                made to a State under subparagraph 
                                (A)(i) for a fiscal year shall be in an 
                                amount equal to 50 percent of the 
                                excess expenditures of the State for 
                                subsidized employment during the fiscal 
                                year.
                                    ``(II) Excess expenditures of the 
                                state for subsidized employment.--The 
                                term `excess expenditures of the State 
                                for subsidized employment' means, with 
                                respect to a fiscal year, the lesser 
                                of--
                                            ``(aa) the excess described 
                                        in subparagraph (B) with 
                                        respect to the State for the 
                                        fiscal year; or
                                            ``(bb) an amount equal to 
                                        the total expenditures of the 
                                        State for subsidized employment 
                                        funded under this part or under 
                                        any other State program funded 
                                        by qualified State expenditures 
                                        (as defined in section 
                                        409(a)(7)(B)(i)), excluding 
                                        those with respect to which a 
                                        grant is made to the State 
                                        under subsection (b) of this 
                                        section, during the fiscal 
                                        year.
                            ``(ii) Indian tribes.--The grant to be made 
                        to an Indian tribe under this paragraph shall 
                        be in such amount as the Secretary deems 
                        appropriate.
                    ``(D) Use of grant.--Notwithstanding section 404, a 
                State or Indian tribe to which a grant is made under 
                this paragraph shall use the grant solely to finance 
                subsidized employment activities, and to serve areas of 
                the State with the greatest need (as referred to in 
                section 402(a)(1)(A)).
                    ``(E) Appropriation.--Out of any funds in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated such sums as are 
                necessary for grants under this paragraph for each 
                fiscal year.''.
            (2) Amounts provided to territories from the matching grant 
        to be disregarded for purposes of limitation on payments to the 
        territories.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is 
        amended by inserting ``403(a)(3),'' after ``403(a)(2),''.
            (3) Data reports required with respect to families that 
        include an individual participating in subsidized employment 
        programs.--Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is 
        amended, in the matter before clause (i), by inserting ``, and 
        families that include an individual participating in subsidized 
        employment funded with Federal funds or qualified State 
        expenditures (as so defined)'' before the colon.
    (e) Tribal Family Assistance Grants.--Section 412(a)(1) (42 U.S.C. 
612(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``fiscal year 2012'' 
        and inserting ``each fiscal year''; and
            (2) in subparagraph (B)--
                    (A) by redesignating clause (ii) as clause (iii); 
                and
                    (B) by striking clause (i) and inserting the 
                following:
                            ``(i) In general.--The amount determined 
                        under this subparagraph for a fiscal year is an 
                        amount equal to the sum of the adjusted 
                        historic expenditures for the fiscal year with 
                        respect to each State in which a service area 
                        of the Indian tribe is located.
                            ``(ii) Adjusted historic expenditures 
                        defined.--In clause (i), the term `adjusted 
                        historic expenditures' means, with respect to a 
                        fiscal year, a State, and an Indian tribe, the 
                        total amount of the Federal payments to the 
                        State under section 403 (as then in effect) for 
                        fiscal year 1994 attributable to expenditures 
                        (other than child care expenditures) by the 
                        State under parts A and F (as so in effect) for 
                        fiscal year 1994 for Indian families residing 
                        in the service areas identified by the tribe 
                        pursuant to subsection (b)(1)(C) of this 
                        section that are in the State, increased by the 
                        percentage (if any) by which the amount of the 
                        grant payable under section 403(a)(1) for the 
                        fiscal year to the State exceeds the amount of 
                        the grant so payable to the State for fiscal 
                        year 2010.''.
    (f) Census Bureau Study.--Section 414 (42 U.S.C. 614) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) In General.--The Director of the Bureau of the Census shall 
conduct a study to assess the effects of policies and programs related 
to low-income families, including policies and programs under State 
programs funded under this part or funded with qualified State 
expenditures (as defined in section 409(a)(7)(B)(i)), including changes 
and policies in such programs made pursuant to the Rewriting to Improve 
and Secure an Exit Out of Poverty Act. The Director shall design the 
study in consultation with the Secretary. Every 5 years, the Director 
shall, in consultation with the Secretary, revise the content and 
nature of the study to reflect emerging policy issues related to low-
income families.''; and
            (2) in subsection (b), by striking ``fiscal year 2012'' and 
        inserting ``each fiscal year''.
    (g) Funding of Studies and Evaluations.--Section 413(h)(1) (42 
U.S.C. 613(h)(1)) is amended by striking ``fiscal year 2012'' and 
inserting ``each fiscal year''.
    (h) Matching Grants to Certain Territories.--Section 1108 (42 
U.S.C. 1308) is amended--
            (1) in subsection (a)(2), by inserting ``section 403(a)(1) 
        (to the extent exceeding the amount required to be so paid to 
        the territory for fiscal year 2011),'' before ``403(a)(2)''; 
        and
            (2) in subsection (b)(2), by striking ``fiscal year 2012'' 
        and inserting ``each fiscal year''.

SEC. 704. WORK REQUIREMENTS.

    (a) Participation Rate Requirement.--Section 407 (42 U.S.C. 607) is 
amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) Participation Rate Requirement.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve a minimum 
        participation rate of 50 percent with respect to all families 
        residing in the State that include a work-eligible individual.
            ``(2) Work-eligible individual defined.--
                    ``(A) In general.--In subsection (a), the term 
                `work-eligible individual', subject to subparagraphs 
                (B) and (C), means--
                            ``(i) an adult recipient of assistance 
                        under the State program funded under this part 
                        or under any other State program funded by 
                        qualified State expenditures (as defined in 
                        section 409(a)(7)(B)(i));
                            ``(ii) a former recipient of such 
                        assistance who is--
                                    ``(I) a parent of a dependent child 
                                who is such a recipient; and
                                    ``(II) no longer eligible for 
                                assistance under the State program 
                                funded under this part by reason of 
                                section 408(a)(7); and
                            ``(iii) a participant in a subsidized 
                        employment program funded under this part or 
                        under any other State program funded by 
                        qualified State expenditures (as defined in 
                        section 409(a)(7)(B)(i)).
                    ``(B) Exclusion of individuals sanctioned or 
                undergoing pre-sanction review.--The term `work-
                eligible individual' does not include any individual 
                with respect to whom--
                            ``(i) there is in effect a penalty imposed 
                        by the State under subsection (e) of this 
                        section; or
                            ``(ii) the State has initiated (but not 
                        completed) the pre-sanction review process 
                        pursuant to section 408(a)(14)(A).
                    ``(C) State option to exclude certain 
                individuals.--A State may exclude from the term `work-
                eligible individual' any resident of the State who is--
                            ``(i) a single parent caring for a child 
                        who has not attained 1 year of age;
                            ``(ii) a recipient of supplemental security 
                        income benefits under title XVI, disability 
                        insurance benefits under title II, or other 
                        Federal or State benefits based on disability;
                            ``(iii) an applicant for supplemental 
                        security income benefits under title XVI;
                            ``(iv) an individual who is needed in the 
                        home of the individual to care for a disabled 
                        member of the family of the individual; or
                            ``(v) an individual who (but for the 
                        exercise of the State option under this clause) 
                        would be a work-eligible individual under a 
                        tribal family assistance plan approved under 
                        section 412 or under a tribal work program to 
                        which funds are provided under this part.
    ``(b) Calculation of Participation Rates.--
            ``(1) Average monthly rate.--For purposes of subsection 
        (a), the participation rate of a State for a fiscal year is the 
        average of the participation rates of the State for each month 
        in the fiscal year.
            ``(2) Monthly participation rate.--For purposes of 
        paragraph (1), the participation rate of a State for a month, 
        expressed as a percentage, is--
                    ``(A) the number of families residing in the State 
                that include a work-eligible individual who is engaged 
                in work for the month; divided by
                    ``(B) the number of families residing in the State 
                that include a work-eligible individual.''.
    (b) Participation Requirements.--Section 407(c) (42 U.S.C. 607(c)) 
is amended to read as follows:
    ``(c) Engaged in Work.--For purposes of subsection (b):
            ``(1) General rule.--An individual is engaged in work for a 
        month in a fiscal year if the recipient is participating in 
        work activities for an average of at least 20 hours per week 
        during the month.
            ``(2) Individuals complying with a modified employability 
        plan deemed to be engaged in work.--An individual is deemed to 
        be engaged in work for a month if the State determines that the 
        individual is in substantial compliance with the activities and 
        hourly participation requirements of a modified employability 
        plan developed for the individual in accordance with section 
        408(h).
            ``(3) Single teen head of household or married teen who 
        maintains satisfactory school attendance deemed to be engaged 
        in work.--An individual who is married or a head of household 
        and has not attained 20 years of age is deemed to be engaged in 
        work for a month if the recipient maintains satisfactory 
        attendance at secondary school or the equivalent during the 
        month.''.
    (c) Elimination of 12-Month Limit on Counting Vocational 
Educational Training as a Work Activity.--Section 407(d)(8) (42 U.S.C. 
607(d)(8)) is amended by striking ``(not to exceed 12 months with 
respect to any individual)''.

SEC. 705. WORK RULES.

    (a) Option of Recipient To Have Trained Personnel Assess Certain 
Barriers to Employment; Additional Matters Required To Be Assessed.--
Section 408(b)(1) (42 U.S.C. 608(b)(1)) is amended--
            (1) by inserting ``(which, at the option of the recipient, 
        shall be conducted by trained personnel with respect to 
        barriers to employment specified by the recipient)'' after 
        ``assessment''; and
            (2) by striking ``and employability'' and inserting 
        ``employability, physical and mental impairments, English 
        proficiency, child care needs, and whether the recipient is a 
        victim of domestic or sexual violence,''.
    (b) Individual Responsibility Plans.--
            (1) Plans required; plans to include well-being plans for 
        children.--Section 408(b)(2)(A) (42 U.S.C. 608(b)(2)(A)) is 
        amended--
                    (A) in the matter preceding clause (i), by striking 
                ``may'' and inserting ``shall'';
                    (B) in clause (iv)--
                            (i) by inserting ``, supports,'' after 
                        ``counseling''; and
                            (ii) by striking ``and'' at the end;
                    (C) in clause (v), by striking the period and 
                inserting ``; and''; and
                    (D) by adding at the end the following:
                            ``(vi) describe a well-being plan for each 
                        child in the family.''.
            (2) Deadline for completion of plan.--Section 408(b)(2)(B) 
        (42 U.S.C. 608(b)(2)(B)) is amended by striking ``individual--
        '' and all that follows and inserting ``individual within 90 
        days after the individual is determined eligible for the 
        assistance.''.
            (3) Sanction for failure of state to develop plan.--Section 
        409(a) (42 U.S.C. 609(a)), as amended by section 903(c)(2)(A) 
        of this title, is amended by adding at the end the following:
            ``(16) Penalty for failure of state to develop required 
        individual responsibility plan.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 in a 
                fiscal year has violated section 408(b)(2) during the 
                fiscal year, the Secretary shall reduce the grant 
                payable to the State under section 403(a)(1) for the 
                immediately succeeding fiscal year by an amount equal 
                to not more than 5 percent of the State family 
                assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) with respect to a fiscal year based on the degree 
                of noncompliance.''.
            (4) Conforming amendment.--Section 408(b) (42 U.S.C. 
        608(b)) is amended by striking paragraph (4).
    (c) Modified Employability Plans for Certain Individuals With 
Disabilities.--Section 408 (42 U.S.C. 608) is amended by adding at the 
end the following:
    ``(h) Authority To Develop Modified Employability Plan for a 
Recipient of Assistance With, or Caring for a Family Member With, a 
Disability.--
            ``(1) In general.--A State may develop a modified 
        employability plan for a recipient of assistance under the 
        State program funded under this part--
                    ``(A) who--
                            ``(i) is a work-eligible individual (as 
                        defined in section 407(a)(2)); and
                            ``(ii) has been determined by a qualified 
                        medical, mental health, addiction, or social 
                        services professional (as determined by the 
                        State) to have a disability; or
                    ``(B) who is caring for a family member with a 
                disability (as so determined).
            ``(2) Contents of plan.--The modified employability plan 
        shall--
                    ``(A) include a determination that, because of the 
                disability of the recipient or the individual for whom 
                the recipient is caring, reasonable modification of 
                work activities, hourly participation requirements, or 
                both, is needed in order for the recipient to 
                participate in the activities;
                    ``(B) describe the modified work activities in 
                which the recipient is required to participate;
                    ``(C) specify the number of hours per week for 
                which the recipient is required to participate in the 
                modified work activities, based on an evaluation by the 
                State of the circumstances of the family;
                    ``(D) describe the services, supports, and 
                modifications that the State will provide to the 
                recipient or the family of the recipient;
                    ``(E) be developed in cooperation with the 
                recipient; and
                    ``(F) be reviewed not less often than every 6 
                months.
            ``(3) Definitions.--In this subsection:
                    ``(A) Disability.--The term `disability' means a 
                mental or physical impairment, including substance 
                abuse or addiction, that--
                            ``(i) constitutes or results in a 
                        substantial impediment to employment; or
                            ``(ii) substantially limits 1 or more major 
                        life activities.
                    ``(B) Modified work activities.--The term `modified 
                work activities' means activities which the State has 
                determined will help the recipient become 
                employable.''.
    (d) Sanctions.--
            (1) General sanction provisions.--
                    (A) Prohibition on imposing lifetime or full family 
                sanction.--
                            (i) Prohibition.--Section 408(a) (42 U.S.C. 
                        608(a)) is amended by adding at the end the 
                        following:
            ``(13) Prohibition on imposing lifetime or full family 
        sanction.--A State to which a grant is made under section 403 
        shall not impose a lifetime prohibition on the provision of 
        assistance to any individual or family under the State program 
        funded under this part or under a program funded with qualified 
        State expenditures (as defined in section 409(a)(7)(B)(i)) on 
        the basis of the failure of a member of the family to comply 
        with a program requirement.''.
                            (ii) Penalty.--Section 409(a) (42 U.S.C. 
                        609), as amended by section 903(c)(2)(A) of 
                        this title and subsection (b)(3) of this 
                        section, is amended by adding at the end the 
                        following:
            ``(17) Penalty for imposing lifetime or full family 
        sanction.--If the Secretary determines that a State to which a 
        grant is made under section 403 in a fiscal year has violated 
        section 408(a)(13) during the fiscal year, the Secretary shall 
        reduce the grant payable to the State under section 403(a)(1) 
        for the immediately succeeding fiscal year by an amount equal 
        to 5 percent of the State family assistance grant.''.
                    (B) Due process protections.--
                            (i) In general.--Section 408(a) (42 U.S.C. 
                        608(a)), as amended by subparagraph (A)(i) of 
                        this paragraph, is amended by adding at the end 
                        the following:
            ``(14) Sanction procedures.--
                    ``(A) Pre-sanction review process.--Before imposing 
                a sanction against an individual or family receiving 
                assistance under the State program funded under this 
                part or under a program funded with qualified State 
                expenditures (as defined in section 409(a)(7)(B)(i)) 
                for failure to comply with program requirements, the 
                State shall take the following steps:
                            ``(i) Provide or send notice to the 
                        individual or family, and, if the recipient's 
                        native language is not English, through a 
                        culturally competent written or verbal 
                        translation, of the following information:
                                    ``(I) The specific reason for the 
                                proposed sanction.
                                    ``(II) The amount of the proposed 
                                sanction.
                                    ``(III) The length of time during 
                                which the proposed sanction would be in 
                                effect.
                                    ``(IV) The steps required to come 
                                into compliance or to show good cause 
                                for noncompliance.
                                    ``(V) That the agency will provide 
                                assistance to help the individual 
                                demonstrate good cause for 
                                noncompliance, or come into compliance 
                                with program requirements.
                                    ``(VI) That the individual may 
                                appeal the determination to impose a 
                                sanction, and the steps that the 
                                individual must take to pursue such an 
                                appeal.
                            ``(ii)(I) Ensure that, subject to clause 
                        (iii)--
                                    ``(aa) an individual, other than 
                                the individual who determined that a 
                                sanction be imposed, will review the 
                                determination and have the authority to 
                                take the actions described in subclause 
                                (II); and
                                    ``(bb) the individual or family 
                                against whom the sanction is to be 
                                imposed shall be afforded the 
                                opportunity to meet with the individual 
                                who is reviewing the determination to 
                                impose the sanction.
                            ``(II) The actions described in this 
                        subclause are the following:
                                    ``(aa) Modify the determination to 
                                impose a sanction.
                                    ``(bb) Determine that there was 
                                good cause for the failure to comply.
                                    ``(cc) Recommend modifications to 
                                the individual responsibility or 
                                employment plan of an individual.
                                    ``(dd) Make such other 
                                determinations and take such other 
                                actions as may be appropriate.
                            ``(iii) The review required under clause 
                        (ii) shall include consideration of the 
                        following:
                                    ``(I) To the extent applicable, 
                                whether barriers to compliance exist, 
                                such as a physical or mental impairment 
                                (including mental illness, substance 
                                abuse, mental retardation, or a 
                                learning disability), domestic or 
                                sexual violence, limited proficiency in 
                                English, limited literacy, 
                                homelessness, or the need to care for a 
                                child with a disability or health 
                                condition, that contributed to the 
                                noncompliance.
                                    ``(II) Whether the noncompliance 
                                resulted from failure to receive or 
                                have access to services identified as 
                                necessary in an individual 
                                responsibility or employment plan.
                                    ``(III) Whether changes to the 
                                individual responsibility or employment 
                                plan of an individual should be made in 
                                order for the individual to come into 
                                compliance.
                                    ``(IV) Whether there is good cause 
                                for any noncompliance.
                                    ``(V) Whether the sanction policies 
                                of the State have been applied 
                                properly.
                    ``(B) Sanction follow-up requirements.--If a State 
                imposes a sanction on a family or individual for 
                failing to comply with program requirements, the State 
                shall--
                            ``(i) provide or send notice to the 
                        individual or family, in language calculated to 
                        be understood by the individual or family, and, 
                        if the individual's or family's native language 
                        is not English, through a culturally competent 
                        translation, of the reason for the sanction and 
                        the steps the individual or family must take to 
                        end the sanction;
                            ``(ii) resume full assistance, services, or 
                        benefits to the individual or family under the 
                        program (if the individual or family is 
                        otherwise eligible for the assistance, 
                        services, or benefits) once the individual who 
                        was not in compliance with program requirements 
                        that led to the sanction complies with the 
                        requirements for a reasonable period of time, 
                        as determined by the State and subject to State 
                        discretion to reduce the period; and
                            ``(iii) if the State has not resumed 
                        providing the assistance, services, or benefits 
                        as of the end of the 120-day period that begins 
                        on the date that is 60 days after the date on 
                        which the sanction was imposed, provide notice 
                        to the individual or family, in language 
                        calculated to be understood by the individual 
                        or family, of the steps the individual or 
                        family must take to end the sanction, and of 
                        the availability of assistance to come into 
                        compliance or demonstrate good cause for 
                        noncompliance.
                    ``(C) Notice to evicted persons.--The State shall 
                make a reasonable effort to provide to an individual or 
                family that has been evicted from a residence for 
                failure to pay rent or as a result of another problem 
                related to poverty, any notice required by this 
                paragraph to be provided to the individual or 
                family.''.
                            (ii) Penalty.--Section 409(a) (42 U.S.C. 
                        609(a)), as amended by section 903(c)(2)(A) of 
                        this title, subsection (b)(3) of this section, 
                        and subparagraph (A)(ii) of this paragraph, is 
                        amended by adding at the end the following:
            ``(18) Penalty for failure to follow sanction procedures.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 in a 
                fiscal year has violated section 408(a)(14) during the 
                fiscal year, the Secretary shall reduce the grant 
                payable to the State under section 403(a)(1) for the 
                immediately succeeding fiscal year by an amount equal 
                to not more than 5 percent of the State family 
                assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) with respect to a fiscal year based on the degree 
                of noncompliance.''.
                            (iii) State plan requirement to describe 
                        how states will notify applicants and 
                        recipients of their rights under the program 
                        and of potential benefits and services 
                        available under the program.--Section 
                        402(a)(1)(B)(iii) (42 U.S.C. 602(a)(1)(B)(iii)) 
                        is amended by inserting ``, and will notify 
                        applicants and recipients of assistance under 
                        the program of the rights of individuals under 
                        all laws applicable to program activities and 
                        of all potential benefits and services 
                        available under the program'' before the 
                        period.
            (2) Modifications to work sanction.--
                    (A) Elimination of full family sanction; state 
                required to establish certain good cause exceptions.--
                Section 407(e)(1) (42 U.S.C. 607(e)(1)) is amended--
                            (i) by striking ``shall--'' and all that 
                        follows through subparagraph (B) and inserting 
                        ``shall reduce the amount of assistance 
                        otherwise payable to the family pro rata with 
                        respect to any period during a month in which 
                        the individual so refuses,''; and
                            (ii) by striking ``may establish'' and 
                        inserting the following ``shall establish, 
                        which shall include the decline of an offer of 
                        employment at a wage less than the greater of 
                        the applicable Federal or State minimum wage, 
                        or 80 percent of the wage that would have 
                        governed had the minimum hourly rate under the 
                        Fair Labor Standards Act been applicable to the 
                        offer of employment, at a site subject to a 
                        strike or lockout at the time of refusal, or 
                        for medical reasons or a lack of sufficient 
                        physical strength or stamina''.
                    (B) Prohibition on sanctioning individual for 
                failure to engage in work if individual has a child 
                under age 6 months or if failure results from inability 
                to secure child care or after-school arrangements for a 
                child under age 13.--Section 407(e)(2) (42 U.S.C. 
                607(e)(2)) is amended by striking ``refusal'' and all 
                that follows and inserting ``failure of an individual 
                to engage in work required in accordance with this 
                section if--
                    ``(A) the individual is a single custodial parent 
                caring for a child who has not attained 6 months of 
                age; or
                    ``(B) the individual is the single custodial parent 
                caring for a child who has not attained 13 years of 
                age, and the failure resulted from the inability of the 
                individual to secure child care or after-school 
                arrangements for the child''.
            (3) Modifications to child support sanction.--Section 
        408(a)(2) (42 U.S.C. 608(a)(2)) is amended by striking 
        ``State--'' and all that follows and inserting ``State shall 
        deduct from the assistance that would otherwise be provided to 
        the family of the individual under the State program funded 
        under this part an amount equal to 25 percent of the amount of 
        the assistance.''.
    (e) Related State Plan Requirement.--Section 402(a) (42 U.S.C. 
602(a)) is amended by adding at the end the following:
            ``(8) Certification that employment assessments and 
        sanction reviews will be conducted by competent personnel.--A 
        certification by the chief executive officer of the State that 
        the employment assessments conducted pursuant to section 
        408(b)(1) and the sanction reviews conducted pursuant to 
        section 408(a)(14)(A) will be conducted by personnel who have 
        sufficient education, training, and professional competence to 
        do so, which shall include information on the education, 
        training, and professional competence that State will require 
        of the personnel.''.

SEC. 706. PROHIBITION ON IMPOSING LIMIT OF LESS THAN 60 MONTHS ON 
              DURATION OF ASSISTANCE.

    (a) Prohibition.--
            (1) In general.--Section 408(a)(7) (42 U.S.C. 608(a)(7)) is 
        amended--
                    (A) in the paragraph heading, by striking ``No 
                assistance for more than 5 years'' and inserting 
                ``Durational limits on assistance'';
                    (B) in the heading for subparagraph (A), by 
                striking ``In general'' and inserting ``No assistance 
                for more than 5 years''; and
                    (C) by adding at the end the following:
                    ``(H) Prohibition on limiting duration of 
                assistance to less than 60 months.--A State to which a 
                grant is made under section 403 shall not impose a 
                limit of less than 60 months on the duration for which 
                a family may be provided assistance from Federal or 
                State funds under the State program funded under this 
                part or under a program funded with qualified State 
                expenditures (as defined in section 
                409(a)(7)(B)(i)).''.
            (2) Conforming amendment.--The heading of section 409(a)(9) 
        (42 U.S.C. 609(a)(9)) is amended by striking ``5-year limit'' 
        and inserting ``rules governing durational limits''.
    (b) Requirement To Conduct Outreach To Inform Potentially Eligible 
Families of Elimination of Durational Limit on Assistance of Less Than 
60 Months.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)), as 
        amended by section 905(d)(1) of this title, is amended by 
        adding at the end the following:
            ``(15) Requirement to conduct outreach to inform 
        potentially eligible recipients of assistance of elimination of 
        durational limit on assistance of less than 60 months.--A State 
        to which a grant is made under section 403 for a fiscal year 
        that, before the effective date of this paragraph, denied 
        assistance under the State program funded under this part or 
        any other State program funded by qualified State expenditures 
        (as defined in section 409(a)(7)(B)(i)) to an individual or 
        family on the basis of a durational limit on the assistance 
        that was imposed other than under section 408(a)(7) shall 
        conduct outreach to inform individuals and families who were so 
        denied that they may be eligible for additional months of the 
        assistance.''.
            (2) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended 
        by sections 903(c)(2)(A) and 905(d)(1) of this title, is 
        amended by adding at the end the following:
            ``(19) Failure to conduct outreach to inform potentially 
        eligible recipients of assistance of elimination of durational 
        limit on assistance of less than 60 months.--If the Secretary 
        determines that a State to which a grant is made under section 
        403 in a fiscal year has violated section 408(a)(15) during the 
        fiscal year, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to 5 percent of the 
        State family assistance grant.''.
    (c) State Plan Required To Include Description of How Potentially 
Eligible Recipients Will Be Informed of Elimination of Durational Limit 
on Assistance of Less Than 60 Months.--Section 402(a)(1)(B) (42 U.S.C. 
602(a)(1)(B)) is amended by adding at the end the following:
                            ``(vi) In the case of a State that, before 
                        the date this clause takes effect, denied 
                        assistance under the program to an individual 
                        or family on the basis of a durational limit on 
                        the assistance that was imposed other than 
                        under section 408(a)(7), the document shall 
                        describe how the State intends to inform the 
                        individuals and families who were so denied 
                        that they may be eligible for additional months 
                        of the assistance.''.

SEC. 707. RESPONSE OF TANF PROGRAM TO ECONOMIC RECESSIONS.

    (a) Inapplicability of Durational Limit on Assistance.--Section 
408(a)(7) (42 U.S.C. 608(a)(7)), as amended by section 906(a)(1)(C) of 
this title, is amended by adding at the end the following:
                    ``(I) Inapplicability of durational limit during 
                recession.--Subparagraph (A) shall not apply in a State 
                during any month which is in a high unemployment period 
                with respect to the State.
                    ``(J) Disregard of assistance provided during 
                recession.--In determining the number of months for 
                which an adult has received assistance under a State or 
                tribal program funded under this part or any other 
                State program funded by qualified State expenditures 
                (as defined in section 409(a)(7)(B)(i)), the State or 
                tribe shall disregard any month which is in a high 
                unemployment period with respect to the State.
                    ``(K) 6-month grace period required after 
                recession.--Subparagraph (A) shall not apply to a 
                recipient of assistance under the State program funded 
                under this part or any other State program funded by 
                qualified State expenditures (as defined in section 
                409(a)(7)(B)(i)) during the 6-month period that begins 
                with the month immediately following a high 
                unemployment period with respect to the State if the 
                recipient received the assistance for the last month of 
                the period.''.
    (b) Requirement To Conduct Outreach To Inform Potentially Eligible 
Families of Suspension of Durational Limit on Assistance.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)), as 
        amended by sections 905(d)(1) and 906(b)(1) of this title, is 
        amended by adding at the end the following:
            ``(16) Requirement to conduct outreach to inform 
        potentially eligible recipients of assistance of suspension of 
        durational limit on assistance.--In each month which is a high 
        unemployment period with respect to a State to which a grant is 
        made under section 403 for a fiscal year, the State shall 
        conduct outreach to inform individuals and families who are 
        potentially eligible for assistance under the State program 
        funded under this part or any other State program funded by 
        qualified State expenditures (as defined in section 
        409(a)(7)(B)(i)) of the suspension of any durational limit on 
        assistance under the program.''.
            (2) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended 
        by sections 903(c)(2)(A), 905(d)(1), and 906(b)(2), is amended 
        by adding at the end the following:
            ``(20) Failure to conduct outreach to inform potentially 
        eligible recipients of assistance of suspension of durational 
        limit on assistance.--If the Secretary determines that a State 
        to which a grant is made under section 403 in a fiscal year has 
        violated section 408(a)(16) during the fiscal year, the 
        Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family assistance 
        grant.''.
    (c) State Plan Required To Include Description of How Potentially 
Eligible Recipients Will Be Informed of Suspension of Time Limits 
During Recession.--Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)), as 
amended by section 906(c) of this title, is amended by adding at the 
end the following:
                            ``(vii) The document shall describe how the 
                        State intends to inform potentially eligible 
                        recipients of assistance under the program of 
                        the suspension of durational limits on the 
                        assistance during a high unemployment period 
                        with respect to the State.''.
    (d) High Unemployment Period Defined.--Section 419 (42 U.S.C. 619) 
is amended by adding at the end the following:
            ``(6) High unemployment period defined.--The term `high 
        unemployment period' means, with respect to a State, a period 
        of 1 or more consecutive months if the average rate of total 
        unemployment in the State (seasonally adjusted) for the period 
        consisting of the then most recent 3 months for which data for 
        all States are published equals or exceeds 6.5 percent.''.

SEC. 708. REQUIREMENT THAT STATES USE MERIT-BASED SYSTEM IN 
              ADMINISTRATION OF TANF PROGRAMS.

    (a) Program Requirement.--Section 408(a) (42 U.S.C. 608(a)), as 
amended by sections 905(d)(1), 906(b)(1), and 907(b)(1) of this title, 
is amended by adding at the end the following:
            ``(17) Requirement to use merit-based system in 
        administering program.--A State to which a grant is made under 
        section 403 shall establish and maintain personnel standards 
        through a merit-based system, in administering the State 
        program funded under this part and any other State program 
        funded by qualified State expenditures (as defined in section 
        409(a)(7)(B)(i)).''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by 
sections 903(c)(2)(A), 905(d)(1), 906(b)(2), and 907(b)(2) of this 
title, is amended by adding at the end the following:
            ``(21) Penalty for failure to use merit-based system in 
        administering program.--If the Secretary determines that a 
        State to which a grant is made under section 403 in a fiscal 
        year has violated section 408(a)(17) during the fiscal year, 
        the Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 5 percent of the State family assistance 
        grant.''.

SEC. 709. BAN ON USING FEDERAL TANF FUNDS TO REPLACE STATE AND LOCAL 
              SPENDING THAT DOES NOT MEET THE DEFINITION OF QUALIFIED 
              STATE EXPENDITURES.

    (a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)), as amended by 
sections 905(d)(1), 906(b)(1), 907(b)(1), and 908(a) of this title, is 
amended by adding at the end the following:
            ``(18) Ban on using federal tanf funds to replace state or 
        local spending that is not a qualified state expenditure.--A 
        State to which a grant is made under section 403, and a sub-
        State entity that receives funds from such a grant, shall not 
        expend any part of the grant funds to supplant State or local 
        spending for benefits or services which are not qualified State 
        expenditures (within the meaning of section 
        409(a)(7)(B)(i)).''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by 
sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 907(b)(2), and 908(b) of 
this title, is amended by adding at the end the following:
            ``(22) Use of federal tanf funds to replace state or local 
        spending that is not a qualified state expenditure.--If the 
        Secretary determines that a State to which a grant is made 
        under section 403 in a fiscal year has violated section 
        408(a)(18) during the fiscal year, the Secretary shall reduce 
        the grant payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year by an amount equal to 5 
        percent of the State family assistance grant.''.

SEC. 710. TANF ASSISTANCE TO MEET BASIC FAMILY ECONOMIC NEEDS.

    (a) State Plan Requirement.--Section 402(a)(1)(B) (42 U.S.C. 
602(a)(1)(B)), as amended by sections 906(c) and 907(d) of this title, 
is amended by adding at the end the following:
                            ``(viii) Family budget provisions.--The 
                        document shall set forth a family budget of a 
                        dollar amount sufficient to meet the basic 
                        economic needs (including food, clothing, 
                        shelter, utilities, household goods, personal 
                        care items, and general incidental expenses) of 
                        a family, how the family budget is adjusted for 
                        family size, the method used to estimate the 
                        family budget (including a statement of the 
                        relationship between shelter and utility costs 
                        and the fair market rents in localities in the 
                        State), and the relationship between the amount 
                        of assistance provided to each family under the 
                        program and the amount of the family budget for 
                        the family.''.
    (b) Program Requirement.--Section 408(a) (42 U.S.C. 608(a)), as 
amended by sections 905(d)(1), 906(b)(1), 907(b)(1), 908(a), and 909(a) 
of this title, is amended by adding at the end the following:
            ``(19) Requirement that amount of assistance meet basic 
        economic needs.--A State to which a grant is made under section 
        403 shall ensure that the total amount of assistance provided 
        to a family under the State program funded under this part and 
        all programs funded with qualified State expenditures (as 
        defined in section 409(a)(7)(B)(i)) for which the family is 
        eligible is sufficient to meet the basic economic needs of the 
        family, taking into account all earned and unearned income of 
        the family and an amount not to exceed the value of the 
        supplemental nutrition assistance benefits provided to the 
        family under the Food and Nutrition Act of 2008.''.
    (c) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by 
sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 907(b)(2), 908(b), and 
909(b) of this title, is amended by adding at the end the following:
            ``(23) Penalty for failure of state tanf assistance to meet 
        basic economic needs of a recipient family.--If the Secretary 
        determines that a State to which a grant is made under section 
        403 in a fiscal year has violated section 408(a)(19) during the 
        fiscal year, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to 5 percent of the 
        State family assistance grant.''.

SEC. 711. STATE PLANS AND REPORTS ON CHILD POVERTY.

    (a) Child Poverty Reduction as a Purpose of the TANF Program.--
Section 401(a)(1) (42 U.S.C. 601(a)(1)) is amended by redesignating 
paragraphs (1) through (4) as paragraphs (2) through (5), respectively, 
and by inserting before paragraph (2) (as so redesignated) the 
following:
            ``(1) reduce poverty among children;''.
    (b) State Plan Provisions.--
            (1) Matters required to be addressed.--Section 402(a)(1)(A) 
        (42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the 
        following:
                            ``(ix) Goals and methods for reducing child 
                        poverty.--Reduce child poverty using Federal 
                        funds provided under this part and State funds, 
                        including establishing numerical goals for 
                        reducing child poverty.
                            ``(x) Goals and tracking of work 
                        outcomes.--Track work-related outcomes for 
                        recipients of assistance under the program, 
                        such as employment entries, wages, and job 
                        retention, including establishing numerical 
                        goals for work-related outcomes for recipients.
                            ``(xi) Provide preventative services to 
                        families at risk of abuse or neglect.--Provide 
                        benefits and services to families at risk of 
                        having their children removed from the home 
                        because of abuse and neglect, using Federal 
                        funds provided under this part and State funds.
                            ``(xii) How noncustodial parents will be 
                        served.--Serve noncustodial parents, using 
                        Federal funds provided under this part and 
                        State funds.''.
            (2) Public availability.--Section 402(c) (42 U.S.C. 602(c)) 
        is amended to read as follows:
    ``(c) Public Availability.--
            ``(1) In general.--The State shall make available to the 
        public, including by posting on a public website of the State 
        or another appropriate website--
                    ``(A) each draft of any plan or plan amendment to 
                be submitted by the State under this section, for at 
                least 45 days before the submission; and
                    ``(B) any such plan or amendment certified by the 
                Secretary to be complete.
            ``(2) Procedures.--The State shall establish procedures to 
        receive and respond to comments from the public, private sector 
        organizations, and local governments on any draft referred to 
        in paragraph (1).''.
    (c) Annual Performance Report.--Section 411 (42 U.S.C. 611) is 
amended by adding at the end the following:
    ``(e) Annual Performance Report by States.--Not later than December 
31 of each year, each eligible State shall submit to the Secretary (in 
accordance with such form and content rules as the Secretary, in 
consultation with the National Governor's Association, National 
Association of State Legislatures, and the American Public Human 
Services Association, develops) a report on the following aspects of 
the State program funded under this part in the preceding fiscal year:
            ``(1) Whether the State met the child poverty reduction 
        goals set forth in the State plan. This part of the report 
        shall include a discussion of the factors, including benefits, 
        services, and activities funded with Federal funds provided 
        under this part or State funds, which contributed to the 
        meeting of, or the failure to meet, the goals.
            ``(2) Whether the work programs of the State were effective 
        in meeting the objectives and numerical goals of the State 
        plan. This part of the report shall include a discussion of 
        data derived from the tracking of recipients, including--
                    ``(A) the number of families that left the State 
                program funded under this part;
                    ``(B) the employment rate for those who left the 
                program in each calendar quarter;
                    ``(C) the wage rates of those who left the program, 
                including the percentage of leavers who, in each 
                calendar quarter, earned an amount equal to at least 50 
                percent of the average wage then paid in the State; and
                    ``(D) the employment outcomes of those who left the 
                program because of a durational limit on assistance, 
                reported at 6 months, 12 months, 24 months, and 36 
                months after leaving the program.
        The Secretary shall provide States with technical assistance in 
        preparing this part of the report, including by providing 
        States with data from the National Directory of New Hires.
            ``(3) Whether the State has been effective in providing 
        benefits and services under the program to persons with 
        disabilities. This part of the report shall include a report on 
        recipients of assistance under the State program funded under 
        this part who participated in work activities (as defined in 
        section 407(d)) pursuant to a modified employability plan due 
        to disability, including the following:
                    ``(A) The aggregate number of recipients with 
                modified employability plans due to a disability.
                    ``(B) The percentage of all recipients with 
                modified employability plans who substantially complied 
                with activities set forth in the plans each month of 
                the fiscal year.
                    ``(C) Information regarding the most prevalent 
                types of physical and mental impairments that provided 
                the basis for the disability determinations.
                    ``(D) The percentage of cases with a modified 
                employability plan in which the recipient had a 
                disability, was caring for a child with a disability, 
                or was caring for another family member with a 
                disability.
                    ``(E) A description of the most prevalent types of 
                modification in work activities or hours of 
                participation that were included in the modified 
                employability plans.
                    ``(F) A description of the qualifications of the 
                staff who determined whether individuals had a 
                disability, of the staff who determined that 
                individuals needed modifications to their work 
                requirements, and of the staff who developed the 
                modified employability plans.
            ``(4) The effectiveness of the benefits and services 
        provided under the State program in reducing the number of 
        children removed from their homes because of abuse and neglect. 
        This part of the report shall include an analysis which 
        includes the following:
                    ``(A) The number of families provided the benefits 
                or services that were at risk of having their children 
                removed from the home.
                    ``(B) The number of families served by the program 
                that had 1 or more children removed from the home 
                because of abuse or neglect.
            ``(5) An analysis of the extent to which the benefits and 
        services under the State program were provided to noncustodial 
        parents.
            ``(6) How funds provided to the State under this part, with 
        a separate accounting for funds provided under section 
        403(a)(3) and funds provided under section 403(b), were used to 
        serve areas of the State with the greatest need (as referred to 
        in section 402(a)(1)(A)(i)). This part of the report shall 
        include supporting data.''.
    (d) Annual Report to Congress on the Efforts of State Programs To 
Promote and Support Employment for Individuals With Disabilities.--
Section 411 (42 U.S.C. 611), as amended by subsection (c) of this 
section, is amended by adding at the end the following:
    ``(f) Report by Secretary.--Not later than July 31 of each fiscal 
year, the Secretary shall submit to the Congress a report, entitled 
`Efforts in State TANF Programs to Promote and Support Employment for 
Individuals with Disabilities', that includes information on State 
efforts to engage individuals with disabilities in work activities 
during the preceding fiscal year. The report shall include the 
following information:
            ``(1) For each State, the number of individuals for whom 
        the State has developed a modified employability plan.
            ``(2) The types of physical and mental impairments that 
        provided the basis for the disability determination, and 
        whether the individual with the disability was an adult 
        recipient or minor child head of household, a child, or a non-
        recipient family member.
            ``(3) The types of modifications that States have included 
        in modified employability plans.
            ``(4) The extent to which individuals with a modified 
        employability plan are participating in work activities.
            ``(5) For each State, an analysis of the extent to which 
        the option to establish modified employability plans was a 
        factor in the State achieving or not achieving the minimum 
        participation rate required by section 407(a).''.
    (e) Report to Congress on Legislative Options To Reward States With 
High Employment Rates and High Rates of Employment at Good Wages.--
Within 4 years after the effective date of this section, the Secretary 
of Health and Human Services shall submit to the Congress a report that 
sets forth options for the enactment of legislation to provide 
financial or other rewards to States that have high rates of employment 
and high rates of employment at good wages.

SEC. 712. REQUIREMENT THAT STATES ADOPT STANDARDS AND PROCEDURES TO 
              ADDRESS DOMESTIC AND SEXUAL VIOLENCE AMONG TANF 
              RECIPIENTS.

    (a) In General.--Section 402(a)(7) (42 U.S.C. 602(a)(7)) is 
amended--
            (1) by striking the paragraph heading and inserting 
        ``Certification of standards and procedures regarding domestic 
        and sexual violence'';
            (2) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) In general.--A certification by the chief 
                executive officer of the State that the State has 
                established and is enforcing standards and procedures 
                to ensure the right and entitlement of victims of 
                domestic or sexual violence (notwithstanding section 
                401(b)) seeking or receiving assistance under the State 
                program funded under this part or any other State 
                program funded by qualified State expenditures (as 
                defined in section 409(a)(7)(B)(i))--
                            ``(i) to be screened and identified while 
                        maintaining the confidentiality of the victims;
                            ``(ii) to be referred to counseling and 
                        supportive services;
                            ``(iii) to be granted a waiver, pursuant to 
                        a determination of good cause, of program 
                        requirements such as time limits (for so long 
                        as necessary), residency requirements, child 
                        support cooperation requirements, and family 
                        cap provisions, in cases where compliance with 
                        the requirements would make it more difficult 
                        for the victims to escape domestic or sexual 
                        violence or unfairly penalize the victims or 
                        other individuals who are at risk of further 
                        domestic or sexual violence;
                            ``(iv) to apply to participate in the 
                        program on the same day the victim appears in 
                        person in a program office during office hours;
                            ``(v) to have an application that contains 
                        the name, address, and signature of the victim 
                        considered to be filed on the date the 
                        application is submitted;
                            ``(vi) to receive at the time of 
                        application a clear, written statement 
                        explaining what the victim must do to cooperate 
                        in obtaining verification and otherwise 
                        completing the application process; and
                            ``(vii) if the victim has completed the 
                        application process, to have the eligibility of 
                        the victim for assistance determined promptly, 
                        and to be provided assistance retroactive to 
                        the application date if determined eligible 
                        within 30 days after the application date.''; 
                        and
            (3) in subparagraph (B)--
                    (A) in the subparagraph heading, by inserting ``or 
                sexual'' after ``Domestic''; and
                    (B) in the text, by inserting ``or sexual'' after 
                ``domestic''.
    (b) Report to the Congress on Best Practices of States.--Section 
413 (42 U.S.C. 613) is amended by adding at the end the following:
    ``(k) Report to Congress on Best Practices of States in Addressing 
Domestic and Sexual Violence Suffered by TANF Recipients.--Every 4 
years, the Secretary shall prepare and submit to the Congress a report 
which examines the practices of States in implementing section 
402(a)(7), and identifies the best practices used to do so.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2017.

SEC. 713. CHILD CARE ENTITLEMENT.

    (a) Replacement of Requirement That Portion of Funds Be Used for 
Certain Populations With Child Care Guarantee.--Section 418(b)(2) (42 
U.S.C. 618(b)(2)) is amended to read as follows:
            ``(2) Child care to be guaranteed for certain 
        populations.--As a condition of receiving funds under this 
        section, a State shall guarantee the provision of child care 
        services to--
                    ``(A) each recipient of assistance under the State 
                program funded under this part or under a State program 
                funded with qualified State expenditures (as defined in 
                section 409(a)(7)(B)(i)) of this Act, and to each work-
                eligible individual (as defined in section 407(a)(2) of 
                this Act), for any period in which the recipient or 
                individual is--
                            ``(i) participating in a work activity (as 
                        defined in section 407(d) of this Act);
                            ``(ii) employed, and in a family the total 
                        income of which does not exceed 250 percent of 
                        the poverty line (within the meaning of section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981, including any revision required by 
                        such section applicable to a family of the size 
                        involved); or
                            ``(iii) engaged in employment subsidized by 
                        the State; or
                    ``(B) each individual who is a former recipient of 
                assistance under such a program or a former work-
                eligible individual, for any portion of the 24-month 
                period, beginning with the date the individual left the 
                program involved, in which the individual is employed 
                and in a family that meets the income requirement of 
                subparagraph (A)(ii).''.
    (b) Elimination of State Caps.--Section 418(a) (42 U.S.C. 618(a)) 
is amended--
            (1) in paragraph (2)--
                    (A) by striking subparagraphs (B) and (D) and 
                redesignating subparagraph (C) as subparagraph (B); and
                    (B) in subparagraph (B) (as so redesignated), by 
                striking ``the lesser of the State's allotment under 
                subparagraph (B) or''; and
            (2) in paragraph (5), by striking ``(2)(C)'' and inserting 
        ``(2)(B)''.
    (c) Open-Ended Entitlement.--Section 418(a) (42 U.S.C. 618(a)) is 
amended--
            (1) in paragraph (1), by striking ``Subject to the amount 
        appropriated under paragraph (3), each'' and inserting 
        ``Each''; and
            (2) in paragraph (3), by striking ``appropriated--'' and 
        all that follows and inserting ``appropriated such sums as are 
        necessary to carry out this section for each fiscal year.''.
    (d) Use of Funds in Accordance With Child Care and Development 
Block Grant Act of 1990 Except as Required by Child Care Guarantee.--
Section 418(c) (42 U.S.C. 618(c)) is amended by inserting ``except to 
the extent that such a requirement or limitation would interfere with 
the provision of child care services required by subsection (b)(2)'' 
before the period.

SEC. 714. CHILD SUPPORT ENFORCEMENT.

    (a) Elimination of Ban on Providing Assistance to Families Not 
Assigning Certain Support Rights to the State.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)) is 
        amended by striking paragraph (3).
            (2) Conforming amendments.--The following provisions are 
        each amended by inserting after ``section 408(a)(3)'' the 
        following: ``(as in effect before the effective date of the 
        amendments made by title IX of the Pathways Out of Poverty Act 
        of 2017 took effect)'':
                    (A) Section 452(a)(10)(C) (42 U.S.C. 
                652(a)(10)(C)).
                    (B) Section 452(h) (42 U.S.C. 652(h)).
                    (C) Section 454(5)(A) (42 U.S.C. 654(5)(A)).
                    (D) Section 456(a)(1) (42 U.S.C. 656(a)(1)).
                    (E) Section 457(a)(2)(B)(i) (42 U.S.C. 
                657(a)(2)(B)(i)).
                    (F) Section 457(a)(3)(A) (42 U.S.C. 657(a)(3)(A)).
                    (G) Section 457(a)(3)(B) (42 U.S.C. 657(a)(3)(B)).
                    (H) Section 464(a)(1) (42 U.S.C. 664(a)(1)).
                    (I) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)).
    (b) Requirement That All Child Support Collected on Behalf of a 
Child in a Family Receiving TANF Be Distributed to the Family.--
            (1) In general.--Section 457 (42 U.S.C. 657) is amended--
                    (A) in subsection (c)(1), by striking ``means--'' 
                and all that follows through ``(B) foster'' and 
                inserting ``means foster''; and
                    (B) by adding at the end the following:
    ``(f) Notwithstanding the preceding provisions of this section, all 
amounts collected by a State as child support on behalf of a child in a 
family that is receiving assistance under the State program funded 
under part A or under the State plan approved under part A of this 
title (as in effect on the day before the date of the enactment of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 
1996) shall be distributed to the family.''.
            (2) Conforming amendments.--Section 458(b)(5)(C)(i)(I) (42 
        U.S.C. 658(b)(5)(C)(i)(I)) is amended--
                    (A) by inserting ``is collected on behalf of a 
                child described in section 457(f) or'' after 
                ``involved''; and
                    (B) by striking ``A or''.

SEC. 715. STATE OPTION TO EXTEND ELIGIBILITY FOR ASSISTANCE TO CHILDREN 
              THROUGH AGE 21; PROHIBITION ON CONSIDERING FINANCIAL AID 
              TIED TO EDUCATION OF CHILD IN DETERMINING ELIGIBILITY 
              FOR, OR AMOUNT OF ASSISTANCE; PROHIBITION ON IMPOSING 
              ADDITIONAL REQUIREMENTS BASED ON EDUCATIONAL ENROLLMENT 
              OF CHILD.

    (a) State Option To Extend TANF to Children Under Age 22.--Section 
419(2) (42 U.S.C. 619(2)) is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) at the option of the State, has not attained 22 years 
        of age.''.
    (b) Ban on Considering Financial Aid Tied to Education of Child in 
Determining Eligibility for, or Amount of Assistance; Ban on Imposing 
Additional Requirements Based on Educational Enrollment of Child.--
            (1) Prohibitions.--Section 408(a) (42 U.S.C. 608(a)), as 
        amended by sections 903(c)(2)(A), 905(d)(1), 906(b)(1), 
        907(b)(1), 908(a), 909(a), and 910(b) of this title, is amended 
        by adding at the end the following:
            ``(20) Ban on considering financial aid tied to education 
        of child in determining eligibility for, or amount of 
        assistance; ban on imposing additional requirements based on 
        educational enrollment of child.--A State to which a grant is 
        made under section 403 for a fiscal year shall not--
                    ``(A) consider financial aid tied to the training, 
                school attendance, or postsecondary school attendance 
                of a minor child in determining that the eligibility of 
                the family of the child for, or the amount of 
                assistance to be provided to the family, under the 
                State program funded under this part or any other State 
                program funded by qualified State expenditures (as 
                defined in section 409(a)(7)(B)(i)); or
                    ``(B) impose additional requirements on a family 
                solely because the family includes a minor child who is 
                enrolled in a training program, school, or post-
                secondary educational institution.''.
            (2) Penalty.--Section 409(a) (42 U.S.C. 609), as amended by 
        sections 903(c)(2)(A), 905(d)(1), 906(b)(2), 907(b)(2), 908(b), 
        909(b), and 910(c) of this title, is amended by adding at the 
        end the following:
            ``(24) Considering educational enrollment of child or of 
        financial aid tied to education of child.--If the Secretary 
        determines that a State to which a grant is made under section 
        403 in a fiscal year has violated section 408(a)(20) during the 
        fiscal year, the Secretary shall reduce the grant payable to 
        the State under section 403(a)(1) for the immediately 
        succeeding fiscal year by an amount equal to 5 percent of the 
        State family assistance grant.''.

SEC. 716. ELIMINATION OF CERTAIN OTHER BARS TO TANF ASSISTANCE.

    (a) Bar on Assistance for Persons Convicted of Drug Felonies.--
Section 115 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (21 U.S.C. 862a) is amended--
            (1) in the section heading by striking ``assistance and'' 
        and inserting ``supplemental nutrition assistance'';
            (2) in subsection (a), by striking ``for--'' and all that 
        follows through ``(2) benefits'' and inserting ``for 
        benefits'';
            (3) in subsection (b), by striking all through ``The amount 
        of benefits'' and inserting the following:
    ``(b) Effects on Benefits for Others.--The amount of benefits'';
            (4) in subsection (c), by striking ``assistance or''; and
            (5) in subsection (e), by striking ``it--'' and all that 
        follows through ``in section 3(s)'' and inserting ``it in 
        section 3(s)''.
    (b) Bar on Assistance for Unwed Teen Parents Not in School.--
Section 408(a) (42 U.S.C. 608(a)) is amended by striking paragraph (4).
    (c) Bar on Assistance for Teens Not in an Adult-Supervised Living 
Arrangement.--Section 408(a) (42 U.S.C. 608(a)) is amended by striking 
paragraph (5).
    (d) Redesignation of Provisions.--
            (1) In general.--Section 408(a) (42 U.S.C. 608(a)), as 
        amended by the preceding provisions of this title, is amended 
        by redesignating paragraphs (6) through (20) as paragraphs (3) 
        through (17), respectively.
            (2) Conforming amendments.--
                    (A) Section 402(a)(7)(B) (42 U.S.C. 602(a)(7)(B)) 
                is amended by striking ``408(a)(7)(C)(iii)'' and 
                inserting ``408(a)(4)(C)(iii)''.
                    (B) Section 403(a)(5)(C)(ii)(II) (42 U.S.C. 
                603(a)(5)(C)(ii)(II)) is amended by striking 
                ``408(a)(7)(C)'' and inserting ``408(a)(4)(C)''.
                    (C) Section 403(a)(5)(C)(v) (42 U.S.C. 
                603(a)(5)(C)(v)) is amended by striking ``408(a)(7)'' 
                and inserting ``408(a)(4)''.
                    (D) Section 409(a)(7)(B)(i)(IV) (42 U.S.C. 
                609(a)(7)(B)(i)(IV)) is amended by striking 
                ``408(a)(7)'' and inserting ``408(a)(4)''.
                    (E) Section 409(a)(9) (42 U.S.C. 609(a)(9)) is 
                amended by striking ``408(a)(7)'' and inserting 
                ``408(a)(4)''.
                    (F) Section 409(a)(17), as added by section 
                905(d)(1)(A)(ii) of this title, is amended by striking 
                ``408(a)(13)'' and inserting ``408(a)(10)''.
                    (G) Section 409(a)(18), as added by section 
                905(d)(1)(A)(ii) of this title, is amended by striking 
                ``408(a)(14)'' and inserting ``408(a)(11)''.
                    (H) Section 409(a)(19), as added by section 
                906(b)(2) of this title, is amended by striking 
                ``408(a)(15)'' and inserting ``408(a)(12)''.
                    (I) Section 409(a)(20), as added by section 
                907(b)(2) of this title, is amended by striking 
                ``408(a)(16)'' and inserting ``408(a)(13)''.
                    (J) Section 409(a)(21), as added by section 908(b) 
                of this title, is amended by striking ``408(a)(17)'' 
                and inserting ``408(a)(14)''.
                    (K) Section 409(a)(22), as added by section 909(b) 
                of this title, is amended by striking ``408(a)(18)'' 
                and inserting ``408(a)(15)''.
                    (L) Section 409(a)(23), as added by section 910(c) 
                of this title, is amended by striking ``408(a)(19)'' 
                and inserting ``408(a)(16)''.
                    (M) Section 409(a)(24), as added by section 
                915(b)(2) of this title, is amended by striking 
                ``408(a)(20)'' and inserting ``408(a)(17)''.
                    (N) Section 411(a)(1)(A)(xvi) (42 U.S.C. 
                611(a)(1)(A)(xvi)) is amended by striking ``408(a)(7)'' 
                and inserting ``408(a)(7)(A)''.

SEC. 717. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this title, this 
title and the amendments made by this title shall take effect on 
October 1, 2017, and shall apply to payments under title IV of the 
Social Security Act for calendar quarters beginning on or after such 
date, without regard to whether regulations to implement the amendments 
are promulgated by such date.
    (b) Delay Permitted if State Legislation Required.--If the 
Secretary of Health and Human Services determines that State 
legislation (other than legislation appropriating funds) is required in 
order for a State plan under part A or E of title IV of the Social 
Security Act to meet the additional requirements imposed by the 
amendments made by this title, the plan shall not be regarded as 
failing to meet any of the additional requirements before the first day 
of the first calendar quarter beginning after the close of the first 
regular session of the State legislature that begins after the date of 
the enactment of this Act. If the State has a 2-year legislative 
session, each year of the session is deemed to be a separate regular 
session of the State legislature.

   TITLE VIII--EMPLOYMENT ADVANCEMENT, RETENTION, AND NAVIGATION ACT

SEC. 811. FOCUS ON EMPLOYMENT.

    (a) Purpose.--Section 401(a) of the Social Security Act (42 U.S.C. 
601(a)) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) promote employment advancement among needy 
        families.''.
    (b) State Plan Requirement.--Section 402(a)(1)(A) of such Act (42 
U.S.C. 602(a)(1)(A)) is amended--
            (1) by redesignating clauses (vii) and (viii) as clauses 
        (viii) and (ix), respectively; and
            (2) by inserting after clause (vi) the following:
                            ``(vii) Establish numeric goals for 
                        increasing job entry, employment retention, and 
                        earnings gains for current and recent 
                        recipients of assistance under the program, and 
                        provide the Secretary with a narrative 
                        description of the activities and programs the 
                        State will implement to attain these goals.''.

SEC. 812. MODIFICATION RELATING TO THE CONTINGENCY FUND.

    (a) Limitation on Use of Contingency Fund Grants.--Section 
403(b)(3) of the Social Security Act (42 U.S.C. 603(b)(3)) is amended 
by inserting at the end the following:
                    ``(D) Limitation on use of funds.--Funds received 
                by a State under this paragraph shall be used solely to 
                support training programs leading to a credential that 
                is directly linked to the employment opportunities in 
                the local area or region involved in order to promote 
                the employment of current or recent recipients of 
                assistance under the State program funded under this 
                Part (including non-custodial parents of such 
                recipients).''.
    (b) Elimination of Maintenance of Effort Requirement for 
Contingency Fund.--Section 409(a) of such Act (42 U.S.C. 609(a)) is 
amended by striking paragraph (10).
    (c) Modification of Annual Reconciliation Requirement for 
Contingency Fund.--Section 403(b)(6)(B)(i)(II) of such Act (42 U.S.C. 
603(b)(6)(B)(i)(II)) is amended by inserting before ``historic'' the 
following: ``the applicable percentage (as defined in section 
409(a)(7)(B)(ii)) of''.

SEC. 813. TRAINING FOR IN-DEMAND JOBS.

    (a) Vocational Educational Training for Employment in an In-Demand 
Occupation.--Section 407(d)(8) of the Social Security Act (42 U.S.C. 
607(d)(8)) is amended to read as follows:
            ``(8) vocational educational training not to exceed 12 
        months for any individual, or not to exceed 24 months for any 
        individual participating in a training program leading to a 
        credential that is directly linked to the employment 
        opportunities in the individual's local area or region;''.
    (b) Treatment of Students Under 20 Years of Age as Engaged in 
Work.--Section 407(c)(2)(D) of such Act (42 U.S.C. 607(c)(2)(D)) is 
amended by striking ``, or (if the month is in fiscal year 2000 or 
thereafter) deemed to be engaged in work for the month by reason of 
subparagraph (C) of this paragraph''.

SEC. 814. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
the enactment of this title.

TITLE IX--RESTORING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS FUNDING 
              CUTS INSTITUTED IN FARM BILL (HEAT-AND-EAT)

SEC. 901. RESTORATION OF STANDARD UTILITY ALLOWANCES BASED ON THE 
              RECEIPT OF ENERGY ASSISTANCE PAYMENTS.

    (a) Standard Utility Allowances in the Supplemental Nutrition 
Assistance Program.--Section 5(e)(6)(C) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended--
            (1) in clause (i) by striking ``, subject to clause (iv)'', 
        and
            (2) in clause (iv) by striking subclause (I) and inserting 
        the following:
                                    ``(I) In general.--Subject to 
                                subclause (II), if a State agency 
                                elects to use a standard utility 
                                allowance that reflects heating or 
                                cooling costs, the standard utility 
                                allowance shall be made available to 
                                households receiving a payment, or on 
                                behalf of which a payment is made, 
                                under the Low-Income Home Energy 
                                Assistance Act of 1981 (42 U.S.C. 8621 
                                et seq.) or other similar energy 
                                assistance program, if the household 
                                still incurs out-of-pocket heating or 
                                cooling expenses in excess of any 
                                assistance paid on behalf of the 
                                household to an energy provider.''.
    (b) Conforming Amendment.--Section 2605(f)(2)(A) of the Low-Income 
Home Energy Assistance Act of 1981 (42 U.S.C. 8624(f)(2)(A)) is amended 
by striking ``, except that, for purposes of the supplemental nutrition 
assistance program established under the Food and Nutrition Act of 2008 
(7 U.S.C. 2011 et seq.), such payments or allowances were greater than 
$20 annually, consistent with section 5(e)(6)(C)(iv)(I) of that Act (7 
U.S.C. 2014(e)(6)(C)(iv)(I)), as determined by the Secretary of 
Agriculture''.

                 TITLE X--HELPING HUNGRY STUDENTS LEARN

SEC. 1001. FINDINGS.

    Congress makes the following findings:
            (1) In 2012, nearly one in five children in America lived 
        in a household that lacked access to nutritious food on a 
        regular basis. That is 15.9 million American children who 
        struggled with hunger at some time during the year.
            (2) Children who experience hunger are more likely to get 
        sick and are more likely to be obese than those who do not. 
        Children facing chronic hunger also find it more difficult to 
        concentrate in school and tend to exhibit higher levels of 
        behavioral, emotional, and academic problems.
            (3) Federal programs play an important role in addressing 
        childhood hunger. In 2013, 21 million students participated in 
        the free or reduced-price lunch program. Eleven million 
        students participated in the free or reduced-price breakfast 
        program. Three million low-income children received free meals 
        during the summer months. Forty-seven percent of participants 
        in the supplemental nutrition assistance program are under the 
        age of 18.
            (4) On average, students who eat school breakfast achieve 
        17.5 percent higher scores on standardized math tests, and 
        attend 1.5 more days of school each year than those who do not. 
        Students who attend class more regularly are 20 percent more 
        likely to graduate from high school. Participation in the 
        school breakfast program is associated with children having a 
        lower Body Mass Index.

SEC. 1002. SCHOOL LUNCH PROGRAM.

    Section 9(b) of the Richard B. Russell National School Lunch Act is 
amended--
            (1) in paragraph (1)(A), by inserting after the third 
        sentence the following: ``Notwithstanding any other provision 
        of this Act and the Child Nutrition Act of 1966, for each 
        school year beginning on or after the July 1 of the year 
        following the year of enactment of the Pathways Out of Poverty 
        Act of 2017, the income guidelines for determining eligibility 
        for free lunches shall be 185 percent of the applicable family 
        size income levels contained in the nonfarm income poverty 
        guidelines prescribed by the Office of Management and Budget, 
        as adjusted annually in accordance with subparagraph (B)''; and
            (2) in paragraph (9)(B), by inserting at the end the 
        following:
                            ``(iii) Termination of reduced-price 
                        category.--Beginning with the school year 
                        beginning July 1 of the year following the year 
                        of enactment of the Pathways Out of Poverty Act 
                        of 2017, no child shall be determined eligible 
                        for a reduced price lunch.''.

SEC. 1003. SCHOOL BREAKFAST PROGRAM.

    (a) Universal School Breakfast Program.--Section 4(a) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1773(a)) is amended--
            (1) by striking ``(a) There'' and inserting: ``(a)(1) 
        There''; and
            (2) by adding at the end the following:
            ``(2) Universal school breakfast program.--For each school 
        year beginning on or after the July 1 of the year following the 
        year of enactment of the Pathways Out of Poverty Act of 2017, 
        each school participating in the school breakfast program under 
        this section shall provide breakfast under the program to each 
        student that desires such a breakfast at no cost to the 
        student.''.
    (b) National Average Payment Rate.--Section 4(b)(1)(B) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B)) is amended by adding at 
the end the following: ``Notwithstanding any other provision of this 
Act or the Richard B. Russell National School Lunch Act, for each 
school year beginning on or after the July 1 of the year following the 
year of enactment of the Pathways Out of Poverty Act of 2017, the 
national average payment for each breakfast served to any child shall 
be equal to the national average payment for each free breakfast served 
during the school year beginning July 1 of the year of enactment of the 
Pathways Out of Poverty Act of 2017 (which shall be adjusted pursuant 
to section 11(a) of the Richard B. Russell National School Lunch 
Act).''.
    (c) Severe Need Assistance.--Section 4(d)(1) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1773(d)(1)) is amended--
            (1) by striking ``(A) during'' and inserting: ``(A)(i) 
        during'';
            (2) by striking ``(B) in'' and inserting ``(ii) in'';
            (3) by striking ``subparagraph (A)'' and inserting ``clause 
        (i)'';
            (4) by striking ``met.'' and inserting ``met; and''; and
            (5) by adding at the end the following:
                    ``(B) for each school year beginning on or after 
                the July 1 of the year following the year of enactment 
                of the Pathways Out of Poverty Act of 2017, there is an 
                alternative breakfast serving model to increase 
                participation in the school breakfast program, such as 
                by serving breakfast in the classroom or having a 
                school breakfast cart.''.

SEC. 1004. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.

    The Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
seq.) is amended by adding at the end the following:

``SEC. 30. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.

    ``(a) In General.--From the amount appropriated to carry out this 
section, the Secretary shall carry out a summer electronic benefits 
transfer for children program by awarding grants to States that desire 
to participate in such program to assist such States with the initial 
administrative costs of such participation.
    ``(b) Program Requirements.--The summer electronic benefits 
transfer for children program carried out under this section shall have 
the same terms and conditions as the summer electronic benefits 
transfer for children demonstration project carried out under section 
749(g) of the Agriculture, Rural Development, and Food and Drug 
Administration, and Related Agencies Appropriations Act, 2010 (Public 
Law 111-80; 123 Stat. 2131), except that the Secretary shall prescribe 
an annual adjustment for the monthly benefit of $60 per child that is 
adjusted at the time that the annual adjustments are made for the 
national average payment rates for breakfasts and lunches (pursuant to 
section 11(a) of this Act).''.

SEC. 1005. WEEKENDS AND HOLIDAYS WITHOUT HUNGER.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended by adding at the end the following:
    ``(l) Weekends and Holidays Without Hunger.--
            ``(1) Definitions.--In this subsection:
                    ``(A) At-risk school child.--The term `at-risk 
                school child' has the meaning given the term in section 
                17(r)(1).
                    ``(B) Eligible institution.--
                            ``(i) In general.--The term `eligible 
                        institution' means a public or private 
                        nonprofit institution that is determined by the 
                        Secretary to be able to meet safe food storage, 
                        handling, and delivery standards established by 
                        the Secretary.
                            ``(ii) Inclusions.--The term `eligible 
                        institution' includes--
                                    ``(I) an elementary or secondary 
                                school or school food service 
                                authority;
                                    ``(II) a food bank or food pantry;
                                    ``(III) a homeless shelter; and
                                    ``(IV) such other type of emergency 
                                feeding agency as is approved by the 
                                Secretary.
            ``(2) Establishment.--Subject to the availability of 
        appropriations provided in advance in an appropriations Act 
        specifically for the purpose of carrying out this subsection, 
        the Secretary shall establish a program under which the 
        Secretary shall provide commodities, on a competitive basis, to 
        State agencies for the purposes of enabling eligible 
        institutions to carry out projects to provide nutritious food 
        to at-risk children on weekends and during extended school 
        holidays during the school year.
            ``(3) Applications.--To participate in the program under 
        this subsection, a State agency shall submit an application to 
        the Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(4) Eligibility.--
                    ``(A) In general.--To be eligible to receive 
                commodities under this subsection, an eligible 
                institution shall submit an application to the State 
                agency involved at such time, in such manner, and 
                containing such information as the State agency may 
                require.
                    ``(B) Plan.--An application under subparagraph (A) 
                shall include the plan of the eligible institution for 
                the distribution of nutritious foods to at-risk school 
                children under the project to be carried out under this 
                subsection, including--
                            ``(i) methods of food service delivery to 
                        at-risk school children;
                            ``(ii) assurances that children receiving 
                        foods under the project will not be publicly 
                        separated or overtly identified;
                            ``(iii) lists of the types of food to be 
                        provided under the project and provisions to 
                        ensure food quality and safety;
                            ``(iv) information on the number of at-risk 
                        school children to be served and the per-child 
                        cost of providing the children with food; and
                            ``(v) such other information as the 
                        Secretary determines to be necessary to assist 
                        the Secretary in evaluating projects that 
                        receive commodities under this subsection.
            ``(5) Priority.--In selecting applications under this 
        subsection, a State agency shall give priority to eligible 
        institutions that--
                    ``(A) have ongoing programs and experience serving 
                populations with significant proportions of at-risk 
                school children;
                    ``(B) have a good record of experience in food 
                delivery and food safety systems;
                    ``(C) maintain high-quality control, 
                accountability, and recordkeeping standards;
                    ``(D) provide children with readily consumable food 
                of high nutrient content and quality;
                    ``(E) demonstrate cost efficiencies and the 
                potential for obtaining supplemental funding from non-
                Federal sources to carry out projects; and
                    ``(F) demonstrate the ability to continue projects 
                for the full approved term of the pilot project period.
            ``(6) Guidelines.--
                    ``(A) In general.--The Secretary shall issue 
                guidelines containing the criteria for eligible 
                institutions to receive commodities under this section 
                from State agencies.
                    ``(B) Inclusions.--The guidelines shall, to the 
                maximum extent practicable within the funds available 
                and applications submitted, take into account--
                            ``(i) geographical variations in project 
                        locations that will be carried out by eligible 
                        institutions to include qualifying projects in 
                        rural, urban, and suburban areas with high 
                        proportions of families with at-risk school 
                        children;
                            ``(ii) different types of projects that 
                        offer nutritious foods on weekends and during 
                        school holidays to at-risk school children; and
                            ``(iii) institutional capacity to collect, 
                        maintain, and provide statistically valid 
                        information necessary for the Secretary--
                                    ``(I) to analyze and evaluate the 
                                results of the pilot project; and
                                    ``(II) to make recommendations to 
                                Congress.
            ``(7) Evaluation.--
                    ``(A) Interim evaluation.--Not later than November 
                30, 2018, the Secretary shall complete an interim 
                evaluation of the pilot program carried out under this 
                subsection.
                    ``(B) Final report.--Not later than December 31, 
                2020, the Secretary shall submit to Congress a final 
                report that contains--
                            ``(i) an evaluation of the pilot program 
                        carried out under this subsection; and
                            ``(ii) any recommendations of the Secretary 
                        for legislative action.
            ``(8) Funding.--
                    ``(A) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subsection such sums as are necessary, to remain 
                available until expended.
                    ``(B) Availability of funds.--Not more than 3 
                percent of the funds made available under subparagraph 
                (A) may be used by the Secretary for expenses 
                associated with review of the operations and evaluation 
                of the projects carried out under this subsection.''.

         TITLE XI--FOOD ASSISTANCE TO IMPROVE REINTEGRATION ACT

SEC. 1101. REPEAL OF DENIAL OF BENEFITS.

    Section 115 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (21 U.S.C. 862a) is amended--
            (1) in subsection (a) by striking paragraph (2);
            (2) in subsection (b) by striking paragraph (2); and
            (3) in subsection (e) by striking paragraph (2).

                     DIVISION D--LABOR/JOB TRAINING

   TITLE XII--ASSISTANCE FOR THE UNEMPLOYED AND PATHWAYS BACK TO WORK

               Subtitle A--Supporting Unemployed Workers

SEC. 1201. SHORT TITLE.

    This subtitle may be cited as the ``Supporting Unemployed Workers 
Act of 2017''.

 PART I--EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION AND CERTAIN 
  EXTENDED BENEFITS PROVISIONS, AND ESTABLISHMENT OF SELF-EMPLOYMENT 
                           ASSISTANCE PROGRAM

SEC. 1211. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

    (a) In General.--Section 4007 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2018''.
    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
            (1) in subparagraph (I), by striking ``and'' at the end;
            (2) in subparagraph (J), by inserting ``and'' at the end; 
        and
            (3) by inserting after subparagraph (J) the following:
                    ``(K) the amendments made by section 1411(a) of the 
                Supporting Unemployed Workers Act of 2017; and''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the American Taxpayer Relief 
Act of 2012 (Public Law 112-240; 26 U.S.C. 3304 note).

SEC. 1212. TEMPORARY EXTENSION OF EXTENDED BENEFIT PROVISIONS.

    (a) In General.--Section 2005 of the Assistance for Unemployed 
Workers and Struggling Families Act, as contained in Public Law 111-5 
(26 U.S.C. 3304 note), is amended--
            (1) by striking ``December 31, 2013'' each place it appears 
        and inserting ``December 31, 2017''; and
            (2) in subsection (c), by striking ``June 30, 2014'' and 
        inserting ``June 30, 2018''.
    (b) Extension of Matching for States With No Waiting Week.--Section 
5 of the Unemployment Compensation Extension Act of 2008 (Public Law 
110-449; 26 U.S.C. 3304 note) is amended by striking ``June 30, 2014'' 
and inserting ``June 30, 2018''.
    (c) Extension of Modification of Indicators Under the Extended 
Benefit Program.--Section 203 of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
            (1) in subsection (d), by striking ``December 31, 2013'' 
        and inserting ``December 31, 2017''; and
            (2) in subsection (f)(2), by striking ``December 31, 2013'' 
        and inserting ``December 31, 2017''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the American Taxpayer Relief 
Act of 2012 (Public Law 112-240; 26 U.S.C. 3304 note).

SEC. 1213. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD 
              UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is amended--
            (1) by striking ``June 30, 2013'' and inserting ``June 30, 
        2017''; and
            (2) by striking ``December 31, 2013'' and inserting 
        ``December 31, 2017''.
    (b) Clarification on Authority To Use Funds.--Funds appropriated 
under either the first or second sentence of clause (iv) of section 
2(c)(2)(D) of the Railroad Unemployment Insurance Act (45 U.S.C. 
352(c)(2)(D)) shall be available to cover the cost of additional 
extended unemployment benefits provided under such section 2(c)(2)(D) 
by reason of the amendments made by subsection (a) as well as to cover 
the cost of such benefits provided under such section 2(c)(2)(D), as in 
effect on the day before the date of the enactment of this Act.

                   PART II--REEMPLOYMENT NOW PROGRAM

SEC. 1221. ESTABLISHMENT OF REEMPLOYMENT NOW PROGRAM.

    (a) In General.--There is established the Reemployment NOW program 
to be carried out by the Secretary of Labor in accordance with this 
part in order to facilitate the reemployment of individuals who are 
receiving emergency unemployment compensation under title IV of the 
Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 
3304 note) (hereafter in this part referred to as ``EUC claimants'').
    (b) Authorization and Appropriation.--There are authorized to be 
appropriated $4,000,000,000 for fiscal year 2017 to carry out the 
Reemployment NOW program under this part.

SEC. 1222. DISTRIBUTION OF FUNDS.

    (a) In General.--Of the amount made available under section 1321(b) 
to carry out this part, the Secretary of Labor shall--
            (1) reserve up to 1 percent for the costs of Federal 
        administration and for carrying out rigorous evaluations of the 
        activities conducted under this part; and
            (2) allot the remainder of the funds not reserved under 
        paragraph (1) in accordance with the requirements of 
        subsections (b) and (c) to States that have approved plans 
        under section 1223.
    (b) Allotment Formula.--
            (1) Formula factors.--The Secretary of Labor shall allot 
        the funds available under subsection (a)(2) as follows--
                    (A) two-thirds of such funds shall be allotted on 
                the basis of the relative number of unemployed 
                individuals in each State, compared to the total number 
                of unemployed individuals in all States; and
                    (B) one-third of such funds shall be allotted on 
                the basis of the relative number of individuals in each 
                State who have been unemployed for 27 weeks or more, 
                compared to the total number of individuals in all 
                States who have been unemployed for 27 weeks or more.
            (2) Calculation.--For purposes of paragraph (1), the number 
        of unemployed individuals and the number of individuals 
        unemployed for 27 weeks or more shall be based on the data for 
        the most recent 12-month period, as determined by the 
        Secretary.
    (c) Reallotment.--
            (1) Failure to submit state plan.--If a State does not 
        submit a State plan by the time specified in section 1223(b), 
        or a State does not receive approval of a State plan, the 
        amount the State would have been eligible to receive pursuant 
        to the formula under subsection (b) shall be allotted to States 
        that receive approval of the State plan under section 1223 in 
        accordance with the relative allotments of such States as 
        determined by the Secretary under subsection (b).
            (2) Failure to implement activities on a timely basis.--The 
        Secretary of Labor may, in accordance with procedures and 
        criteria established by the Secretary, recapture the portion of 
        the State allotment under this part that remains unobligated if 
        the Secretary determines such funds are not being obligated at 
        a rate sufficient to meet the purposes of this part. The 
        Secretary shall reallot such recaptured funds to other States 
        that are not subject to recapture in accordance with the 
        relative share of the allotments of such States as determined 
        by the Secretary under subsection (b).
            (3) Recapture of funds.--Funds recaptured under paragraph 
        (2) shall be available for reobligation not later than December 
        31, 2017.

SEC. 1223. STATE PLAN.

    (a) In General.--For a State to be eligible to receive an allotment 
under section 1222, a State shall submit to the Secretary of Labor a 
State plan in such form and containing such information as the 
Secretary may require, which at a minimum shall include--
            (1) a description of the activities to be carried out by 
        the State to assist in the reemployment of eligible individuals 
        to be served in accordance with this part, including which of 
        the activities authorized in sections 1224 through 1328 the 
        State intends to carry out and an estimate of the amounts the 
        State intends to allocate to the activities, respectively;
            (2) a description of the performance outcomes to be 
        achieved by the State through the activities carried out under 
        this part, including the employment outcomes to be achieved by 
        participants and the processes the State will use to track 
        performance, consistent with guidance provided by the Secretary 
        of Labor regarding such outcomes and processes;
            (3) a description of coordination of activities to be 
        carried out under this part with activities under title I of 
        the Workforce Innovation and Opportunity Act (as in effect on 
        the day before the date of enactment of the Workforce 
        Innovation and Opportunity Act), the Wagner-Peyser Act, and 
        other appropriate Federal programs;
            (4) the timelines for implementation of the activities 
        described in the plan and the number of EUC claimants expected 
        to be enrolled in such activities by quarter;
            (5) assurances that the State will participate in the 
        evaluation activities carried out by the Secretary of Labor 
        under this section;
            (6) assurances that the State will provide appropriate 
        reemployment services, including counseling, to any EUC 
        claimant who participates in any of the programs authorized 
        under this part; and
            (7) assurances that the State will report such information 
        as the Secretary may require relating to fiscal, performance 
        and other matters, including employment outcomes and effects, 
        which the Secretary determines are necessary to effectively 
        monitor the activities carried out under this part.
    (b) Plan Submission and Approval.--A State plan under this section 
shall be submitted to the Secretary of Labor for approval not later 
than 30 days after the Secretary issues guidance relating to submission 
of such plan. The Secretary shall approve such plans if the Secretary 
determines that the plans meet the requirements of this part and are 
appropriate and adequate to carry out the purposes of this part.
    (c) Plan Modifications.--A State may submit modifications to a 
State plan that has been approved under this part, and the Secretary of 
Labor may approve such modifications, if the plan as modified would 
meet the requirements of this part and are appropriate and adequate to 
carry out the purposes of this part.

SEC. 1224. BRIDGE TO WORK PROGRAM.

    (a) In General.--A State may use funds allotted to the State under 
this part to establish and administer a Bridge to Work program 
described in this section.
    (b) Description of Program.--In order to increase individuals' 
opportunities to move to permanent employment, a State may establish a 
Bridge to Work program to provide an EUC claimant with short-term work 
experience placements with an eligible employer, during which time such 
individual--
            (1) shall be paid emergency unemployment compensation 
        payable under title IV of the Supplemental Appropriations Act, 
        2008 (Public Law 110-252; 26 U.S.C. 3304 note), as wages for 
        work performed, and as specified in subsection (c);
            (2) shall be paid the additional amount described in 
        subsection (e) as augmented wages for work performed; and
            (3) may be paid compensation in addition to the amounts 
        described in paragraphs (1) and (2) by a State or by a 
        participating employer as wages for work performed.
    (c) Program Eligibility and Other Requirements.--For purposes of 
this program--
            (1) individuals who, except for the requirements described 
        in paragraph (3), are eligible to receive emergency 
        unemployment compensation payments under title IV of the 
        Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
        U.S.C. 3304 note), and who choose to participate in the program 
        described in subsection (b), shall receive such payments as 
        wages for work performed during their voluntary participation 
        in the program described under subsection (b);
            (2) the wages payable to individuals described in paragraph 
        (1) shall be paid from the emergency unemployment compensation 
        account for such individual as described in section 4002 of the 
        Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
        U.S.C. 3304 note), and the amount in such individual's account 
        shall be reduced accordingly;
            (3) the wages payable to an individual described in 
        paragraph (1) shall be payable in the same amount, at the same 
        interval, on the same terms, and subject to the same conditions 
        under title IV of the Supplemental Appropriations Act, 2008 
        (Public Law 110-252; 26 U.S.C. 3304 note), except that--
                    (A) State requirements applied under such Act 
                relating to availability for work and active search for 
                work are not applicable to such individuals who 
                participate for at least 25 hours per week in the 
                program described in subsection (b) for the duration of 
                such individual's participation in the program;
                    (B) State requirements applied under such Act 
                relating to disqualifying income regarding wages earned 
                shall not apply to such individuals who participate for 
                at least 25 hours per week in the program described in 
                subsection (b), and shall not apply with respect to--
                            (i) the wages described under subsection 
                        (b); and
                            (ii) any wages, in addition to those 
                        described under subsection (b), whether paid by 
                        a State or a participating employer for the 
                        same work activities;
                    (C) State prohibitions or limitations applied under 
                such Act relating to employment status shall not apply 
                to such individuals who participate in the program 
                described in subsection (b); and
                    (D) State requirements applied under such Act 
                relating to an individual's acceptance of an offer of 
                employment shall not apply with regard to an offer of 
                long-term employment from a participating employer made 
                to such individual who is participating in the program 
                described in subsection (b) in a work experience 
                provided by such employer, where such long-term 
                employment is expected to commence or commences at the 
                conclusion of the duration specified in paragraph 
                (4)(A);
            (4) the program shall be structured so that individuals 
        described in paragraph (1) may participate in the program for 
        up to--
                    (A) 8 weeks, and
                    (B) 38 hours for each such week;
            (5) a State shall ensure that all individuals participating 
        in the program are covered by a workers' compensation insurance 
        program; and
            (6) the program meets such other requirements as the 
        Secretary of Labor determines to be appropriate in guidance 
        issued by the Secretary.
    (d) State Requirements.--
            (1) Certification of eligible employer.--A State may 
        certify as eligible for participation in the program under this 
        section any employer that meets the eligibility criteria as 
        established in guidance by the Secretary of Labor, except that 
        an employer shall not be certified as eligible for 
        participation in the program described under subsection (b)--
                    (A) if such employer--
                            (i) is a Federal, State, or local 
                        government entity;
                            (ii) would engage an eligible individual in 
                        work activities under any employer's grant, 
                        contract, or subcontract with a Federal, State, 
                        or local government entity, except with regard 
                        to work activities under any employer's supply 
                        contract or subcontract;
                            (iii) is delinquent with respect to any 
                        taxes or employer contributions described under 
                        sections 3301 and 3302(a)(1) of the Internal 
                        Revenue Code of 1986 or with respect to any 
                        related reporting requirements;
                            (iv) is engaged in the business of 
                        supplying workers to other employers and would 
                        participate in the program for the purpose of 
                        supplying individuals participating in the 
                        program to other employers; or
                            (v) has previously participated in the 
                        program and the State has determined that such 
                        employer has failed to abide by any of the 
                        requirements specified in subsection (h), (i), 
                        or (j), or by any other requirements that the 
                        Secretary may establish for employers under 
                        subsection (c)(6); and
                    (B) unless such employer provides assurances that 
                it has not displaced existing workers pursuant to the 
                requirements of subsection (h).
            (2) Authorized activities.--Funds allotted to a State under 
        this part for the program--
                    (A) shall be used to--
                            (i) recruit employers for participation in 
                        the program;
                            (ii) review and certify employers 
                        identified by eligible individuals seeking to 
                        participate in the program;
                            (iii) ensure that reemployment and 
                        counseling services are available for program 
                        participants, including services describing the 
                        program under subsection (b), prior to an 
                        individual's participation in such program;
                            (iv) establish and implement processes to 
                        monitor the progress and performance of 
                        individual participants for the duration of the 
                        program;
                            (v) prevent misuse of the program; and
                            (vi) pay augmented wages to eligible 
                        individuals, if necessary, as described in 
                        subsection (e); and
                    (B) may be used--
                            (i) to pay workers' compensation insurance 
                        premiums to cover all individuals participating 
                        in the program, except that, if a State opts 
                        not to make such payments directly to a State 
                        administered workers' compensation program, the 
                        State involved shall describe in the approved 
                        State plan the means by which such State shall 
                        ensure workers' compensation or equivalent 
                        coverage for all individuals who participate in 
                        the program;
                            (ii) to pay compensation to a participating 
                        individual that is in addition to the amounts 
                        described in subsections (c)(1) and (e) as 
                        wages for work performed;
                            (iii) to provide supportive services, such 
                        as transportation, child care, and dependent 
                        care, that would enable individuals to 
                        participate in the program;
                            (iv) for the administration and oversight 
                        of the program; and
                            (v) to fulfill additional program 
                        requirements included in the approved State 
                        plan.
    (e) Payment of Augmented Wages if Necessary.--In the event that the 
wages described in subsection (c)(1) are not sufficient to equal or 
exceed the minimum wages that are required to be paid by an employer 
under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 206(a)(1)) or the applicable State or local minimum wage law, 
whichever is higher, a State shall pay augmented wages to a program 
participant in any amount necessary to cover the difference between--
            (1) such minimum wages amount; and
            (2) the wages payable under subsection (c)(1).
    (f) Effect of Wages on Eligibility for Other Programs.--None of the 
wages paid under this section shall be considered as income for the 
purposes of determining eligibility for and the amount of income 
transfer and in-kind aid furnished under any Federal or federally 
assisted program based on need.
    (g) Effect of Wages, Work Activities, and Program Participation on 
Continuing Eligibility for Emergency Unemployment Compensation.--Any 
wages paid under this section and any additional wages paid by an 
employer to an individual described in subsection (c)(1), and any work 
activities performed by such individual as a participant in the 
program, shall not be construed so as to render such individual 
ineligible to receive emergency unemployment compensation under title 
IV of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
U.S.C. 3304 note).
    (h) Nondisplacement of Employees.--
            (1) Prohibition.--An employer shall not use a program 
        participant to displace (including a partial displacement, such 
        as a reduction in the hours of non-overtime work, wages, or 
        employment benefits) any current employee (as of the date of 
        the participation).
            (2) Other prohibitions.--An employer shall not permit a 
        program participant to perform work activities related to any 
        job for which--
                    (A) any other individual is on layoff from the same 
                or any substantially equivalent position;
                    (B) the employer has terminated the employment of 
                any employee or otherwise reduced the workforce of the 
                employer with the intention of filling or partially 
                filling the vacancy so created with the work activities 
                to be performed by a program participant;
                    (C) there is a strike or lock out at the worksite 
                that is the participant's place of employment; or
                    (D) the job is created in a manner that will 
                infringe in any way upon the promotional opportunities 
                of currently employed individuals (as of the date of 
                the participation).
    (i) Prohibition on Impairment of Contracts.--An employer shall not, 
by means of assigning work activities under this section, impair an 
existing contract for services or a collective bargaining agreement, 
and no such activity that would be inconsistent with the terms of a 
collective bargaining agreement shall be undertaken without the written 
concurrence of the labor organization that is signatory to the 
collective bargaining agreement.
    (j) Limitation on Employer Participation.--If, after 24 weeks of 
participation in the program, an employer has not made an offer of 
suitable long-term employment to any individual described under 
subsection (c)(1) who was placed with such employer and has completed 
the program, a State shall bar such employer from further participation 
in the program. States may impose additional conditions on 
participating employers to ensure that an appropriate number of 
participants receive offers of suitable long-term employment.
    (k) Failure To Meet Program Requirements.--If a State makes a 
determination based on information provided to the State, or acquired 
by the State by means of its administration and oversight functions, 
that a participating employer under this section has violated a 
requirement of this section, the State shall bar such employer from 
further participation in the program. The State shall establish a 
process whereby an individual described in subsection (c)(1), or any 
other affected individual or entity, may file a complaint with the 
State relating to a violation of any requirement or prohibition under 
this section.
    (l) Participant Option To Terminate Participation in Bridge to Work 
Program.--
            (1) Termination.--An individual who is participating in a 
        program described in subsection (b) may opt to discontinue 
        participation in such program.
            (2) Continued eligibility for emergency unemployment 
        compensation.--An individual who opts to discontinue 
        participation in such program, is terminated from such program 
        by a participating employer, or who has completed participation 
        in such program, and who continues to meet the eligibility 
        requirements for emergency unemployment compensation under 
        title IV of the Supplemental Appropriations Act, 2008 (Public 
        Law 110-252; 26 U.S.C. 3304 note), shall receive emergency 
        unemployment compensation payments with respect to subsequent 
        weeks of unemployment, to the extent that amounts remain in the 
        account established for such individual under section 4002(b) 
        of such Act or to the extent that such individual commences 
        receiving the amounts described in subsection (c), (d), or (e) 
        of such section, respectively.
    (m) Effect of Other Laws.--Unless otherwise provided in this 
section, nothing in this section shall be construed to alter or affect 
the rights or obligations under any Federal, State, or local laws with 
respect to any individual described in subsection (c)(1) and with 
respect to any participating employer under this section.
    (n) Treatment of Payments.--All wages or other payments to an 
individual under this section shall be treated as payments of 
unemployment compensation for purposes of section 209 of the Social 
Security Act (42 U.S.C. 409) and for purposes of subtitle A and 
sections 3101, 3111, and 3301 of the Internal Revenue Code of 1986.

SEC. 1225. WAGE INSURANCE.

    (a) In General.--A State may use the funds allotted to the State 
under this part to provide a wage insurance program for EUC claimants.
    (b) Benefits.--The wage insurance program provided under this 
section may use funds allotted to the State under this part to pay, for 
a period not to exceed 2 years, to a worker described in subsection 
(c), up to 50 percent of the difference between--
            (1) the wages received by the worker at the time of 
        separation; and
            (2) the wages received by the worker for reemployment.
    (c) Individual Eligibility.--The benefits described in subsection 
(b) may be paid to an individual who is an EUC claimant at the time 
such individual obtains reemployment and who--
            (1) is at least 50 years of age;
            (2) earns not more than $50,000 per year in wages from 
        reemployment;
            (3) is employed on a full-time basis as defined by the law 
        of the State; and
            (4) is not employed by the employer from which the 
        individual was last separated.
    (d) Total Amount of Payments.--A State shall establish a maximum 
amount of payments per individual for purposes of payments described in 
subsection (b) during the eligibility period described in such 
subsection.
    (e) Non-Discrimination Regarding Wages.--An employer shall not pay 
a worker described in subsection (c) less than such employer pays to a 
regular worker in the same or substantially equivalent position.

SEC. 1226. ENHANCED REEMPLOYMENT STRATEGIES.

    (a) In General.--A State may use funds allotted under this part to 
provide a program of enhanced reemployment services to EUC claimants. 
In addition to the provision of services to such claimants, the program 
may include the provision of reemployment services to individuals who 
are unemployed and have exhausted their rights to emergency 
unemployment compensation under title IV of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note). The 
program shall provide reemployment services that are more intensive 
than the reemployment services provided by the State prior to the 
receipt of the allotment under this part.
    (b) Types of Services.--The enhanced reemployment services 
described in subsection (a) may include services such as--
            (1) assessments, counseling, and other intensive services 
        that are provided by staff on a one-to-one basis and may be 
        customized to meet the reemployment needs of EUC claimants and 
        individuals described in subsection (a);
            (2) comprehensive assessments designed to identify 
        alternative career paths;
            (3) case management;
            (4) reemployment services that are provided more frequently 
        and more intensively than such reemployment services have 
        previously been provided by the State; and
            (5) services that are designed to enhance communication 
        skills, interviewing skills, and other skills that would assist 
        in obtaining reemployment.

SEC. 1227. SELF-EMPLOYMENT PROGRAMS.

    A State may use funds allotted to the State under this part, in an 
amount specified under an approved State plan, for the administrative 
costs associated with starting up the self-employment assistance 
program described in section 4001(i) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note).

SEC. 1228. ADDITIONAL INNOVATIVE PROGRAMS.

    (a) In General.--A State may use funds allotted under this part to 
provide a program for innovative activities, which use a strategy that 
is different from the reemployment strategies described in sections 
1224 through 1227 and which are designed to facilitate the reemployment 
of EUC claimants. In addition to the provision of activities to such 
claimants, the program may include the provision of activities to 
individuals who are unemployed and have exhausted their rights to 
emergency unemployment compensation under title IV of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note).
    (b) Conditions.--The innovative activities approved in accordance 
with subsection (a)--
            (1) shall directly benefit EUC claimants and, if 
        applicable, individuals described in subsection (a), either as 
        a benefit paid to such claimant or individual or as a service 
        provided to such claimant or individual;
            (2) shall not result in a reduction in the duration or 
        amount of, emergency unemployment compensation for which EUC 
        claimants would otherwise be eligible;
            (3) shall not include a reduction in the duration, amount 
        of or eligibility for regular compensation or extended 
        benefits;
            (4) shall not be used to displace (including a partial 
        displacement, such as a reduction in the hours of non-overtime 
        work, wages, or employment benefits) any currently employed 
        employee (as of the date of the participation) or allow a 
        program participant to perform work activities related to any 
        job for which--
                    (A) any other individual is on layoff from the same 
                or any substantially equivalent job;
                    (B) the employer has terminated the employment of 
                any regular employee or otherwise reduced the workforce 
                of the employer with the intention of filling or 
                partially filling the vacancy so created with the work 
                activities to be performed by a program participant;
                    (C) there is a strike or lock out at the worksite 
                that is the participant's place of employment; or
                    (D) the job is created in a manner that will 
                infringe in any way upon the promotional opportunities 
                of currently employed individuals (as of the date of 
                the participation); and
            (5) shall not be in violation of any Federal, State, or 
        local law.

SEC. 1229. GUIDANCE AND ADDITIONAL REQUIREMENTS.

    The Secretary of Labor may establish through guidance, without 
regard to the requirements of section 553 of title 5, United States 
Code, such additional requirements, including requirements regarding 
the allotment, recapture, and reallotment of funds, and reporting 
requirements, as the Secretary determines to be necessary to ensure 
fiscal integrity, effective monitoring, and appropriate and prompt 
implementation of the activities under this Act.

SEC. 1230. REPORT OF INFORMATION AND EVALUATIONS TO CONGRESS AND THE 
              PUBLIC.

    The Secretary of Labor shall provide to the appropriate Committees 
of the Congress and make available to the public the information 
reported pursuant to section 1229 and the evaluations of activities 
carried out pursuant to the funds reserved under section 1222(a)(1).

SEC. 1231. STATE.

    For purposes of this part, the term ``State'' has the meaning given 
that term in section 205 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note).

               PART III--SHORT-TIME COMPENSATION PROGRAM

SEC. 1241. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION PAYMENTS IN 
              STATES WITH PROGRAMS IN LAW.

    (a) Payments to States.--
            (1) In general.--Subject to paragraph (3), there shall be 
        paid to a State an amount equal to 100 percent of the amount of 
        short-time compensation paid under a short-time compensation 
        program (as defined in section 3306(v) of the Internal Revenue 
        Code of 1986) under the provisions of the State law.
            (2) Terms of payments.--Payments made to a State under 
        paragraph (1) shall be payable by way of reimbursement in such 
        amounts as the Secretary estimates the State will be entitled 
        to receive under this section for each calendar month, reduced 
        or increased, as the case may be, by any amount by which the 
        Secretary finds that the Secretary's estimates for any prior 
        calendar month were greater or less than the amounts which 
        should have been paid to the State. Such estimates may be made 
        on the basis of such statistical, sampling, or other method as 
        may be agreed upon by the Secretary and the State agency of the 
        State involved.
            (3) Limitations on payments.--
                    (A) General payment limitations.--No payments shall 
                be made to a State under this section for short-time 
                compensation paid to an individual by the State during 
                a benefit year in excess of 26 times the amount of 
                regular compensation (including dependents' allowances) 
                under the State law payable to such individual for a 
                week of total unemployment.
                    (B) Employer limitations.--No payments shall be 
                made to a State under this section for benefits paid to 
                an individual by the State under a short-time 
                compensation program if such individual is employed by 
                the participating employer on a seasonal, temporary, or 
                intermittent basis.
    (b) Applicability.--
            (1) In general.--Payments to a State under subsection (a) 
        shall be available for weeks of unemployment--
                    (A) beginning on or after the date of the enactment 
                of this Act; and
                    (B) ending on or before the date that is 3 years 
                and 6 months after the date of the enactment of this 
                Act.
            (2) Three-year funding limitation for combined payments 
        under this section and section 1243.--States may receive 
        payments under this section and section 1243 with respect to a 
        total of not more than 156 weeks.
    (c) Two-Year Transition Period for Existing Programs.--During any 
period that the transition provision under section 1241(a)(3) is 
applicable to a State with respect to a short-time compensation 
program, such State shall be eligible for payments under this section. 
Subject to paragraphs (1)(B) and (2) of subsection (b), if at any point 
after the date of the enactment of this Act the State enacts a State 
law providing for the payment of short-time compensation under a short-
time compensation program that meets the definition of such a program 
under section 3306(v) of the Internal Revenue Code of 1986, the State 
shall be eligible for payments under this section after the effective 
date of such enactment.
    (d) Funding and Certifications.--
            (1) Funding.--There are appropriated, out of moneys in the 
        Treasury not otherwise appropriated, such sums as may be 
        necessary for purposes of carrying out this section.
            (2) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.
    (e) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 1242. TEMPORARY FINANCING OF SHORT-TIME COMPENSATION AGREEMENTS.

    (a) Federal-State Agreements.--
            (1) In general.--Any State which desires to do so may enter 
        into, and participate in, an agreement under this section with 
        the Secretary provided that such State's law does not provide 
        for the payment of short-time compensation under a short-time 
        compensation program (as defined in section 3306(v) of the 
        Internal Revenue Code of 1986).
            (2) Ability to terminate.--Any State which is a party to an 
        agreement under this section may, upon providing 30 days' 
        written notice to the Secretary, terminate such agreement.
    (b) Provisions of Federal-State Agreement.--
            (1) In general.--Any agreement under this section shall 
        provide that the State agency of the State will make payments 
        of short-time compensation under a plan approved by the State. 
        Such plan shall provide that payments are made in accordance 
        with the requirements under section 3306(v) of the Internal 
        Revenue Code of 1986.
            (2) Limitations on plans.--
                    (A) General payment limitations.--A short-time 
                compensation plan approved by a State shall not permit 
                the payment of short-time compensation to an individual 
                by the State during a benefit year in excess of 26 
                times the amount of regular compensation (including 
                dependents' allowances) under the State law payable to 
                such individual for a week of total unemployment.
                    (B) Employer limitations.--A short-time 
                compensation plan approved by a State shall not provide 
                payments to an individual if such individual is 
                employed by the participating employer on a seasonal, 
                temporary, or intermittent basis.
            (3) Employer payment of costs.--Any short-time compensation 
        plan entered into by an employer must provide that the employer 
        will pay the State an amount equal to one-half of the amount of 
        short-time compensation paid under such plan. Such amount shall 
        be deposited in the State's unemployment fund and shall not be 
        used for purposes of calculating an employer's contribution 
        rate under section 3303(a)(1) of the Internal Revenue Code of 
        1986.
    (c) Payments to States.--
            (1) In general.--There shall be paid to each State with an 
        agreement under this section an amount equal to--
                    (A) one-half of the amount of short-time 
                compensation paid to individuals by the State pursuant 
                to such agreement; and
                    (B) any additional administrative expenses incurred 
                by the State by reason of such agreement (as determined 
                by the Secretary).
            (2) Terms of payments.--Payments made to a State under 
        paragraph (1) shall be payable by way of reimbursement in such 
        amounts as the Secretary estimates the State will be entitled 
        to receive under this section for each calendar month, reduced 
        or increased, as the case may be, by any amount by which the 
        Secretary finds that the Secretary's estimates for any prior 
        calendar month were greater or less than the amounts which 
        should have been paid to the State. Such estimates may be made 
        on the basis of such statistical, sampling, or other method as 
        may be agreed upon by the Secretary and the State agency of the 
        State involved.
            (3) Funding.--There are appropriated, out of moneys in the 
        Treasury not otherwise appropriated, such sums as may be 
        necessary for purposes of carrying out this section.
            (4) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.
    (d) Applicability.--
            (1) In general.--An agreement entered into under this 
        section shall apply to weeks of unemployment--
                    (A) beginning on or after the date on which such 
                agreement is entered into; and
                    (B) ending on or before the date that is 2 years 
                and 13 weeks after the date of the enactment of this 
                Act.
            (2) Two-year funding limitation.--States may receive 
        payments under this section with respect to a total of not more 
        than 104 weeks.
    (e) Special Rule.--If a State has entered into an agreement under 
this section and subsequently enacts a State law providing for the 
payment of short-time compensation under a short-time compensation 
program that meets the definition of such a program under section 
3306(v) of the Internal Revenue Code of 1986, the State--
            (1) shall not be eligible for payments under this section 
        for weeks of unemployment beginning after the effective date of 
        such State law; and
            (2) subject to paragraphs (1)(B) and (2) of section 
        1442(b), shall be eligible to receive payments under section 
        1242 after the effective date of such State law.
    (f) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 1243. GRANTS FOR SHORT-TIME COMPENSATION PROGRAMS.

    (a) Grants.--
            (1) For implementation or improved administration.--The 
        Secretary shall award grants to States that enact short-time 
        compensation programs (as defined in subsection (i)(2)) for the 
        purpose of implementation or improved administration of such 
        programs.
            (2) For promotion and enrollment.--The Secretary shall 
        award grants to States that are eligible and submit plans for a 
        grant under paragraph (1) for such States to promote and enroll 
        employers in short-time compensation programs (as so defined).
            (3) Eligibility.--
                    (A) In general.--The Secretary shall determine 
                eligibility criteria for the grants under paragraphs 
                (1) and (2).
                    (B) Clarification.--A State administering a short-
                time compensation program, including a program being 
                administered by a State that is participating in the 
                transition under the provisions of sections 1241(a)(3) 
                and 1442(c), that does not meet the definition of a 
                short-time compensation program under section 3306(v) 
                of the Internal Revenue Code of 1986, and a State with 
                an agreement under section 1243, shall not be eligible 
                to receive a grant under this section until such time 
                as the State law of the State provides for payments 
                under a short-time compensation program that meets such 
                definition and such law.
    (b) Amount of Grants.--
            (1) In general.--The maximum amount available for making 
        grants to a State under paragraphs (1) and (2) shall be equal 
        to the amount obtained by multiplying $700,000,000 (less the 
        amount used by the Secretary under subsection (e)) by the same 
        ratio as would apply under subsection (a)(2)(B) of section 903 
        of the Social Security Act (42 U.S.C. 1103) for purposes of 
        determining such State's share of any excess amount (as 
        described in subsection (a)(1) of such section) that would have 
        been subject to transfer to State accounts, as of October 1, 
        2013, under the provisions of subsection (a) of such section.
            (2) Amount available for different grants.--Of the maximum 
        incentive payment determined under paragraph (1) with respect 
        to a State--
                    (A) one-third shall be available for a grant under 
                subsection (a)(1); and
                    (B) two-thirds shall be available for a grant under 
                subsection (a)(2).
    (c) Grant Application and Disbursal.--
            (1) Application.--Any State seeking a grant under paragraph 
        (1) or (2) of subsection (a) shall submit an application to the 
        Secretary at such time, in such manner, and complete with such 
        information as the Secretary may require. In no case may the 
        Secretary award a grant under this section with respect to an 
        application that is submitted after December 31, 2018.
            (2) Notice.--The Secretary shall, within 30 days after 
        receiving a complete application, notify the State agency of 
        the State of the Secretary's findings with respect to the 
        requirements for a grant under paragraph (1) or (2) (or both) 
        of subsection (a).
            (3) Certification.--If the Secretary finds that the State 
        law provisions meet the requirements for a grant under 
        subsection (a), the Secretary shall thereupon make a 
        certification to that effect to the Secretary of the Treasury, 
        together with a certification as to the amount of the grant 
        payment to be transferred to the State account in the 
        Unemployment Trust Fund (as established in section 904(a) of 
        the Social Security Act (42 U.S.C. 1104(a))) pursuant to that 
        finding. The Secretary of the Treasury shall make the 
        appropriate transfer to the State account within 7 days after 
        receiving such certification.
            (4) Requirement.--No certification of compliance with the 
        requirements for a grant under paragraph (1) or (2) of 
        subsection (a) may be made with respect to any State whose--
                    (A) State law is not otherwise eligible for 
                certification under section 303 of the Social Security 
                Act (42 U.S.C. 503) or approvable under section 3304 of 
                the Internal Revenue Code of 1986; or
                    (B) short-time compensation program is subject to 
                discontinuation or is not scheduled to take effect 
                within 12 months of the certification.
    (d) Use of Funds.--The amount of any grant awarded under this 
section shall be used for the implementation of short-time compensation 
programs and the overall administration of such programs and the 
promotion and enrollment efforts associated with such programs, such as 
through--
            (1) the creation or support of rapid response teams to 
        advise employers about alternatives to layoffs;
            (2) the provision of education or assistance to employers 
        to enable them to assess the feasibility of participating in 
        short-time compensation programs; and
            (3) the development or enhancement of systems to automate--
                    (A) the submission and approval of plans; and
                    (B) the filing and approval of new and ongoing 
                short-time compensation claims.
    (e) Administration.--The Secretary is authorized to use 0.25 
percent of the funds available under subsection (g) to provide for 
outreach and to share best practices with respect to this section and 
short-time compensation programs.
    (f) Recoupment.--The Secretary shall establish a process under 
which the Secretary shall recoup the amount of any grant awarded under 
paragraph (1) or (2) of subsection (a) if the Secretary determines 
that, during the 5-year period beginning on the first date that any 
such grant is awarded to the State, the State--
            (1) terminated the State's short-time compensation program; 
        or
            (2) failed to meet appropriate requirements with respect to 
        such program (as established by the Secretary).
    (g) Funding.--There are appropriated, out of moneys in the Treasury 
not otherwise appropriated, to the Secretary, $700,000,000 to carry out 
this section, to remain available without fiscal year limitation.
    (h) Reporting.--The Secretary may establish reporting requirements 
for States receiving a grant under this section in order to provide 
oversight of grant funds.
    (i) Definitions.--In this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (2) Short-time compensation program.--The term ``short-time 
        compensation program'' has the meaning given such term in 
        section 3306(v) of the Internal Revenue Code of 1986.
            (3) State; state agency; state law.--The terms ``State'', 
        ``State agency'', and ``State law'' have the meanings given 
        those terms in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

SEC. 1244. ASSISTANCE AND GUIDANCE IN IMPLEMENTING PROGRAMS.

    (a) In General.--In order to assist States in establishing, 
qualifying, and implementing short-time compensation programs (as 
defined in section 3306(v) of the Internal Revenue Code of 1986), the 
Secretary of Labor (in this section referred to as the ``Secretary'') 
shall--
            (1) develop model legislative language which may be used by 
        States in developing and enacting such programs and 
        periodically review and revise such model legislative language;
            (2) provide technical assistance and guidance in 
        developing, enacting, and implementing such programs; and
            (3) establish reporting requirements for States, including 
        reporting on--
                    (A) the number of estimated averted layoffs;
                    (B) the number of participating employers and 
                workers; and
                    (C) such other items as the Secretary of Labor 
                determines are appropriate.
    (b) Model Language and Guidance.--The model language and guidance 
developed under subsection (a) shall allow sufficient flexibility by 
States and participating employers while ensuring accountability and 
program integrity.
    (c) Consultation.--In developing the model legislative language and 
guidance under subsection (a), and in order to meet the requirements of 
subsection (b), the Secretary shall consult with employers, labor 
organizations, State workforce agencies, and other program experts.

SEC. 1245. REPORTS.

    (a) Reports.--
            (1) In general.--Not later than 4 years after the date of 
        the enactment of this Act, the Secretary of Labor shall submit 
        to Congress and to the President a report or reports on the 
        implementation of the provisions of this Act.
            (2) Requirements.--Any report under paragraph (1) shall at 
        a minimum include the following:
                    (A) A description of best practices by States and 
                employers in the administration, promotion, and use of 
                short-time compensation programs (as defined in section 
                3306(v) of the Internal Revenue Code of 1986).
                    (B) An analysis of the significant challenges to 
                State enactment and implementation of short-time 
                compensation programs.
                    (C) A survey of employers in States that have not 
                enacted a short-time compensation program or entered 
                into an agreement with the Secretary on a short-time 
                compensation plan to determine the level of interest 
                among such employers in participating in short-time 
                compensation programs.
    (b) Funding.--There are appropriated, out of any moneys in the 
Treasury not otherwise appropriated, to the Secretary of Labor, 
$1,500,000 to carry out this section, to remain available without 
fiscal year limitation.

          Subtitle B--Long-Term Unemployed Hiring Preferences

SEC. 1251. LONG-TERM UNEMPLOYED WORKERS WORK OPPORTUNITY TAX CREDITS.

    (a) In General.--Paragraph (3) of section 51(b) of the Internal 
Revenue Code is amended by inserting ``$10,000 per year in the case of 
any individual who is a qualified long-term unemployed individual by 
reason of subsection (d)(11), and'' before ``$12,000 per year''.
    (b) Long-Term Unemployed Individuals Tax Credits.--Subsection (d) 
of section 51 of the Internal Revenue Code is amended--
            (1) in paragraph (1), by striking ``or'' at the end of 
        subparagraph (H), by striking the period at the end of 
        subparagraph (I) and inserting ``, or'', and by inserting after 
        subparagraph (I) the following:
                    ``(J) a qualified long-term unemployed 
                individual.''; and
            (2) by redesignating paragraphs (11) through (14) as 
        paragraphs (12) through (15), respectively, and by inserting 
        after paragraph (10) the following new paragraph:
            ``(11) Qualified long-term unemployed individual.--
                    ``(A) In general.--The term `qualified long-term 
                unemployed individual' means any individual who was not 
                a student for at least 6 months during the 1-year 
                period ending on the hiring date and is certified by 
                the designated local agency as having aggregate periods 
                of unemployment during the 1-year period ending on the 
                hiring date which equal or exceed 6 months.
                    ``(B) Student.--For purposes of this subsection, a 
                student is an individual enrolled at least half-time in 
                a program that leads to a degree, certificate, or other 
                recognized educational credential for at least 6 months 
                whether or not consecutive during the 1-year period 
                ending on the hiring date.''.
    (c) Simplified Certification.--Section 51(d) of the Internal 
Revenue Code, as amended by subsection (b), is amended by adding at the 
end the following new paragraph:
            ``(16) Credit allowed for qualified long-term unemployed 
        individuals.--
                    ``(A) In general.--Any qualified long-term 
                unemployed individual under paragraph (11) will be 
                treated as certified by the designated local agency as 
                having aggregate periods of unemployment if the 
                individual is certified by the designated local agency 
                as being in receipt of unemployment compensation under 
                State or Federal law for not less than 6 months during 
                the 1-year period ending on the hiring date.
                    ``(B) Regulatory authority.--The Secretary in his 
                discretion may provide alternative methods for 
                certification.''.
    (d) Credit Made Available to Tax-Exempt Employers in Certain 
Circumstances.--Section 3111(e) of the Internal Revenue Code is 
amended--
            (1) in the heading for the subsection is amended by 
        inserting ``and Qualified Long-Term Unemployed Individuals'' 
        after ``Qualified Veterans'';
            (2) in paragraph (1) by inserting ``or qualified long-term 
        unemployed individual'' after ``qualified veteran'';
            (3) in paragraph (2) by inserting ``and qualified long-term 
        unemployed individuals'' after ``qualified veterans'';
            (4) in paragraph (3)(C) by inserting ``and qualified long-
        term unemployed individual, as the case may be,'' after 
        ``qualified veteran'';
            (5) in paragraph (4) by inserting ``or qualified long-term 
        unemployed individual'' after ``qualified veteran'' both places 
        it appears; and
            (6) in paragraph (5) by striking ``and'' at the end of 
        subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``, and'', and by adding at the 
        end the following:
                    ``(C) the term `qualified long-term unemployed 
                individual' has meaning given such term by section 
                51(d)(11).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
the enactment of this Act.

                   Subtitle C--Pathways Back to Work

SEC. 1261. SHORT TITLE.

    This subtitle may be cited as the ``Pathways Back to Work Act of 
2017''.

SEC. 1262. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Secretary of Labor 
$5,000,000,000 to carry out this subtitle.

SEC. 1263. AVAILABILITY OF FUNDS.

    (a) In General.--Of the amounts available under section 1262, the 
Secretary of Labor shall--
            (1) allot $2,000,000,000 in accordance with section 1264 to 
        provide subsidized employment to unemployed, low-income adults;
            (2) allot $1,500,000,000 in accordance with section 1265 to 
        provide summer and year-round employment opportunities to low-
        income youth; and
            (3) award $1,500,000,000 in competitive grants in 
        accordance with section 1266 to local entities to carry out 
        work-based training and other work-related and educational 
        strategies and activities of demonstrated effectiveness to 
        unemployed, low-income adults and low-income youth to provide 
        the skills and assistance needed to obtain employment.
    (b) Reservation.--The Secretary of Labor may reserve not more than 
1 percent of amounts available under each of paragraphs (1) through (3) 
of subsection (a) for the costs of technical assistance, evaluations 
and Federal administration of this Act.
    (c) Period of Availability.--The amounts appropriated under this 
Act shall be available for obligation by the Secretary of Labor until 
December 31, 2018, and shall be available for expenditure by grantees 
and subgrantees until September 30, 2019.

SEC. 1264. SUBSIDIZED EMPLOYMENT FOR UNEMPLOYED, LOW-INCOME ADULTS.

    (a) In General.--
            (1) Allotments.--From the funds available under section 
        1263(a)(1), the Secretary of Labor shall make an allotment 
        under subsection (b) to each State that has a State plan 
        approved under subsection (c) and to each outlying area and 
        Native American grantee under section 166 of the Workforce 
        Innovation and Opportunity Act that meets the requirements of 
        this section, for the purpose of providing subsidized 
        employment opportunities to unemployed, low-income adults.
            (2) Guidance.--Not later than 30 days after the date of 
        enactment of this Act, the Secretary of Labor, in coordination 
        with the Secretary of Health and Human Services, shall issue 
        guidance regarding the implementation of this section. Such 
        guidance shall, consistent with this section, include 
        procedures for the submission and approval of State and local 
        plans and the allotment and allocation of funds, including 
        reallotment and reallocation of such funds, that promote the 
        expeditious and effective implementation of the activities 
        authorized under this section.
    (b) State Allotments.--
            (1) Reservations for outlying areas and tribes.--Of the 
        funds described subsection (a)(1), the Secretary shall 
        reserve--
                    (A) not more than one-quarter of 1 percent to 
                provide assistance to outlying areas to provide 
                subsidized employment to low-income adults who are 
                unemployed; and
                    (B) 1.5 percent to provide assistance to grantees 
                of the Native American programs under section 166 of 
                the Workforce Investment and Opportunity Act to provide 
                subsidized employment to low-income adults who are 
                unemployed.
            (2) States.--After determining the amounts to be reserved 
        under paragraph (1), the Secretary of Labor shall allot the 
        remainder of the amounts described in subsection (a)(1) among 
        the States as follows--
                    (A) one-third shall be allotted on the basis of the 
                relative number of unemployed individuals in areas of 
                substantial unemployment in each State, compared to the 
                total number of unemployed individuals in areas of 
                substantial unemployment in all States;
                    (B) one-third shall be allotted on the basis of the 
                relative excess number of unemployed individuals in 
                each State, compared to the total excess number of 
                unemployed individuals in all States; and
                    (C) one-third shall be allotted on the basis of the 
                relative number of disadvantaged adults and youth in 
                each State, compared to the total number of 
                disadvantaged adults and youth in all States.
            (3) Definitions.--For purposes of the formula described in 
        paragraph (2)--
                    (A) Area of substantial unemployment.--The term 
                ``area of substantial unemployment'' means any 
                contiguous area with a population of at least 10,000 
                and that has an average rate of unemployment of at 
                least 6.5 percent for the most recent 12 months, as 
                determined by the Secretary.
                    (B) Disadvantaged adults and youth.--The term 
                ``disadvantaged adults and youth'' means an individual 
                who is age 16 and older who received an income, or is a 
                member of a family that received a total family income, 
                that, in relation to family size, does not exceed the 
                higher of--
                            (i) the poverty line; or
                            (ii) 70 percent of the lower living 
                        standard income level.
                    (C) Excess number.--The term ``excess number'' 
                means, used with respect to the excess number of 
                unemployed individuals within a State, the higher of--
                            (i) the number that represents the number 
                        of unemployed individuals in excess of 4.5 
                        percent of the civilian labor force in the 
                        State; or
                            (ii) the number that represents the number 
                        of unemployed individuals in excess of 4.5 
                        percent of the civilian labor force in areas of 
                        substantial unemployment in such State.
            (4) Reallotment.--If the Governor of a State does not 
        submit a State plan by the time specified in subsection (c), or 
        a State does not receive approval of a State plan, the amount 
        the State would have been eligible to receive pursuant to the 
        formula under paragraph (2) shall be added to the amounts 
        available for the competitive grants under section 1263(a)(3).
    (c) State Plan.--
            (1) In general.--For a State to be eligible to receive an 
        allotment of the funds under subsection (b), the Governor of 
        the State shall submit to the Secretary of Labor a State plan 
        in such form and containing such information as the Secretary 
        may require. At a minimum, such plan shall include--
                    (A) a description of the strategies and activities 
                to be carried out by the State, in coordination with 
                employers in the State, to provide subsidized 
                employment opportunities to unemployed, low-income 
                adults, including strategies relating to the level and 
                duration of subsidies consistent with subsection 
                (e)(2);
                    (B) a description of the requirements the State 
                will apply relating to the eligibility of unemployed, 
                low-income adults, consistent with section 1268(6), for 
                subsidized employment opportunities, which may include 
                criteria to target assistance to particular categories 
                of such adults, such as individuals with disabilities 
                or individuals who have exhausted all rights to 
                unemployment compensation;
                    (C) a description of how the funds allotted to 
                provide subsidized employment opportunities will be 
                administered in the State and local areas, in 
                accordance with subsection (d);
                    (D) a description of the performance outcomes to be 
                achieved by the State through the activities carried 
                out under this section and the processes the State will 
                use to track performance, consistent with guidance 
                provided by the Secretary of Labor regarding such 
                outcomes and processes and with section 1267(b);
                    (E) a description of the coordination of activities 
                to be carried out with the funds provided under this 
                section with activities under title I of the Workforce 
                Innovation and Opportunity Act, the TANF program under 
                part A of title IV of the Social Security Act, and 
                other appropriate Federal and State programs that may 
                assist unemployed, low-income adults in obtaining and 
                retaining employment;
                    (F) a description of the timelines for 
                implementation of the activities described in 
                subparagraph (A), and the number of unemployed, low-
                income adults expected to be placed in subsidized 
                employment by quarter;
                    (G) assurances that the State will report such 
                information as the Secretary of Labor may require 
                relating to fiscal, performance and other matters that 
                the Secretary determines is necessary to effectively 
                monitor the activities carried out under this section; 
                and
                    (H) assurances that the State will ensure 
                compliance with the labor standards and protections 
                described in section 1267(a) of this Act.
            (2) Submission and approval of state plan.--
                    (A) Submission with other plans.--The State plan 
                described in this subsection may be submitted in 
                conjunction with the State plan modification or request 
                for funds required under section 1265, and may be 
                submitted as a modification to a State plan that has 
                been approved under section 102 of the Workforce 
                Innovation and Opportunity Act.
                    (B) Submission and approval.--
                            (i) Submission.--The Governor shall submit 
                        a plan to the Secretary of Labor not later than 
                        75 days after the enactment of this Act and the 
                        Secretary of Labor shall make a determination 
                        regarding the approval or disapproval of such 
                        plans not later than 45 days after the 
                        submission of such plan. If the plan is 
                        disapproved, the Secretary of Labor may provide 
                        a reasonable period of time in which a 
                        disapproved plan may be amended and resubmitted 
                        for approval.
                            (ii) Approval.--The Secretary of Labor 
                        shall approve a State plan that the Secretary 
                        determines is consistent with requirements of 
                        this section and reasonably appropriate and 
                        adequate to carry out the purposes of this 
                        section. If the plan is approved, the Secretary 
                        shall allot funds to States within 30 days 
                        after such approval.
            (3) Modifications to state plan.--The Governor may submit a 
        modification to a State plan under this subsection consistent 
        with the requirements of this section.
    (d) Administration Within the State.--
            (1) Option.--The State may administer the funds for 
        activities under this section through--
                    (A) the State and local entities responsible for 
                the administration of the adult formula program under 
                title I of the Workforce Innovation and Opportunity 
                Act;
                    (B) the entities responsible for the administration 
                of the TANF program under part A of title IV of the 
                Social Security Act; or
                    (C) a combination of the entities described in 
                subparagraphs (A) and (B).
            (2) Within-state allocations.--
                    (A) Allocation of funds.--The Governor may reserve 
                up to 5 percent of the allotment under subsection 
                (b)(2) for administration and technical assistance, and 
                shall allocate the remainder, in accordance with the 
                option elected under paragraph (1)--
                            (i) among local workforce investment areas 
                        within the State in accordance with the factors 
                        identified in subsection (b)(2), except that 
                        for purposes of such allocation references to a 
                        State in such paragraph shall be deemed to be 
                        references to a local workforce investment area 
                        and references to all States shall be deemed to 
                        be references to all local areas in the State 
                        involved, of which not more than 10 percent of 
                        the funds allocated to a local workforce 
                        investment area may be used for the costs of 
                        administration of this section; or
                            (ii) through entities responsible for the 
                        administration of the TANF program under part A 
                        of title IV of the Social Security Act in local 
                        areas in such manner as the State may determine 
                        appropriate.
                    (B) Local plans.--
                            (i) In general.--In the case where the 
                        responsibility for the administration of 
                        activities is to be carried out by the entities 
                        described under paragraph (1)(A), in order to 
                        receive an allocation under subparagraph 
                        (A)(i), a local workforce investment board, in 
                        partnership with the chief elected official of 
                        the local workforce investment area involved, 
                        shall submit to the Governor a local plan for 
                        the use of such funds under this section not 
                        later than 30 days after the submission of the 
                        State plan. Such local plan may be submitted as 
                        a modification to a local plan approved under 
                        section 108 of the Workforce Innovation and 
                        Opportunity Act.
                            (ii) Contents.--The local plan described in 
                        clause (i) shall contain the elements described 
                        in subparagraphs (A) through (H) of subsection 
                        (c)(1), as applied to the local workforce 
                        investment area.
                            (iii) Approval.--The Governor shall approve 
                        or disapprove the local plan submitted under 
                        clause (i) within 30 days after submission, or 
                        if later, 30 days after the approval of the 
                        State plan. The Governor shall approve the plan 
                        unless the Governor determines that the plan is 
                        inconsistent with requirements of this section 
                        or is not reasonably appropriate and adequate 
                        to carry out the purposes of this section. If 
                        the Governor has not made a determination 
                        within the period specified under the first 
                        sentence of this clause, the plan shall be 
                        considered approved. If the plan is 
                        disapproved, the Governor may provide a 
                        reasonable period of time in which a 
                        disapproved plan may be amended and resubmitted 
                        for approval. The Governor shall allocate funds 
                        to local workforce investment areas with 
                        approved plans within 30 days after such 
                        approval.
                    (C) Reallocation of funds to local areas.--If a 
                local workforce investment board does not submit a 
                local plan by the time specified in subparagraph (B) or 
                the Governor does not approve a local plan, the amount 
                the local workforce investment area would have been 
                eligible to receive pursuant to the formula under 
                subparagraph (A)(i) shall be allocated to local 
                workforce investment areas that receive approval of the 
                local plan under subparagraph (B). Such reallocations 
                shall be made in accordance with the relative share of 
                the allocations to such local workforce investment 
                areas applying the formula factors described under 
                subparagraph (A)(i).
    (e) Use of Funds.--
            (1) In general.--The funds under this section shall be used 
        to provide subsidized employment for unemployed, low-income 
        adults. The State and local entities described in subsection 
        (d)(1) may use a variety of strategies in recruiting employers 
        and identifying appropriate employment opportunities, with a 
        priority to be provided to employment opportunities likely to 
        lead to unsubsidized employment in emerging or in-demand 
        occupations in the local area. Funds under this section may be 
        used to provide support services, such as transportation and 
        child care, that are necessary to enable the participation of 
        individuals in subsidized employment opportunities.
            (2) Level of subsidy and duration.--The States or local 
        entities described in subsection (d)(1) may determine the 
        percentage of the wages and costs of employing a participant 
        for which an employer may receive a subsidy with the funds 
        provided under this section, and the duration of such subsidy, 
        in accordance with guidance issued by the Secretary. The State 
        or local entities may establish criteria for determining such 
        percentage or duration using appropriate factors such as the 
        size of the employer and types of employment.
    (f) Coordination of Federal Administration.--The Secretary of Labor 
shall administer this section in coordination with the Secretary of 
Health and Human Services to ensure the effective implementation of 
this section.

SEC. 1265. SUMMER EMPLOYMENT AND YEAR-ROUND EMPLOYMENT OPPORTUNITIES 
              FOR LOW-INCOME YOUTH.

    (a) In General.--From the funds available under section 1263(a)(2), 
the Secretary of Labor shall make an allotment under subsection (c) to 
each State that has a State plan modification (or other form of request 
for funds specified in guidance under subsection (b)) approved under 
subsection (d) and to each outlying area and Native American grantee 
under section 166 of the Workforce Innovation and Opportunity Act that 
meets the requirements of this section, for the purpose of providing 
summer employment and year-round employment opportunities to low-income 
youth.
    (b) Guidance and Application of Requirements.--
            (1) Guidance.--Not later than 20 days after the date of 
        enactment of this Act, the Secretary of Labor shall issue 
        guidance regarding the implementation of this section. Such 
        guidance shall, consistent with this section, include 
        procedures for the submission and approval of State plan 
        modifications, or for forms of requests for funds by the State 
        as may be identified in such guidance, local plan 
        modifications, or other forms of requests for funds from local 
        workforce investment areas as may be identified in such 
        guidance, and the allotment and allocation of funds, including 
        reallotment and reallocation of such funds, that promote the 
        expeditious and effective implementation of the activities 
        authorized under this section.
            (2) Requirements.--Except as otherwise provided in the 
        guidance described in paragraph (1) and in this section and 
        other provisions of this Act, the funds provided for activities 
        under this section shall be administered in accordance with 
        subtitles B and E of title I of the Workforce Innovation and 
        Opportunity Act relating to youth activities.
    (c) State Allotments.--
            (1) Reservations for outlying areas and tribes.--Of the 
        funds described in subsection (a), the Secretary shall 
        reserve--
                    (A) not more than one-quarter of 1 percent to 
                provide assistance to outlying areas to provide summer 
                and year-round employment opportunities to low-income 
                youth; and
                    (B) 1.5 percent to provide assistance to grantees 
                of the Native American programs under section 166 of 
                the Workforce Innovation and Opportunity Act to provide 
                summer and year-round employment opportunities to low-
                income youth.
            (2) States.--After determining the amounts to be reserved 
        under paragraph (1), the Secretary of Labor shall allot the 
        remainder of the amounts described in subsection (a) among the 
        States in accordance with the factors described in section 
        1264(b)(2) of this Act.
            (3) Reallotment.--If the Governor of a State does not 
        submit a State plan modification or other request for funds 
        specified in guidance under subsection (b) by the time 
        specified in subsection (d)(2)(B), or a State does not receive 
        approval of such State plan modification or request, the amount 
        the State would have been eligible to receive pursuant to the 
        formula under paragraph (2) shall be added to the amounts 
        available for the competitive grants under section 1263(a)(3).
    (d) State Plan Modification.--
            (1) In general.--For a State to be eligible to receive an 
        allotment of the funds under subsection (c), the Governor of 
        the State shall submit to the Secretary of Labor a modification 
        to a State plan approved under section 102 of the Workforce 
        Innovation and Opportunity Act, or other request for funds 
        described in guidance in subsection (b), in such form and 
        containing such information as the Secretary may require. At a 
        minimum, such plan modification or request shall include--
                    (A) a description of the strategies and activities 
                to be carried out to provide summer employment 
                opportunities and year-round employment opportunities, 
                including the linkages to educational activities, 
                consistent with subsection (f);
                    (B) a description of the requirements the States 
                will apply relating to the eligibility of low-income 
                youth, consistent with section 1268(4), for summer 
                employment opportunities and year-round employment 
                opportunities, which may include criteria to target 
                assistance to particular categories of such low-income 
                youth, such as youth with disabilities, consistent with 
                subsection (f);
                    (C) a description of the performance outcomes to be 
                achieved by the State through the activities carried 
                out under this section and the processes the State will 
                use to track performance, consistent with guidance 
                provided by the Secretary of Labor regarding such 
                outcomes and processes and with section 1267(b);
                    (D) a description of the timelines for 
                implementation of the activities described in 
                subparagraph (A), and the number of low-income youth 
                expected to be placed in summer employment 
                opportunities, and year-round employment opportunities, 
                respectively, by quarter;
                    (E) assurances that the State will report such 
                information as the Secretary may require relating to 
                fiscal, performance and other matters that the 
                Secretary determines is necessary to effectively 
                monitor the activities carried out under this section; 
                and
                    (F) assurances that the State will ensure 
                compliance with the labor standards protections 
                described in section 1267(a).
            (2) Submission and approval of state plan modification or 
        request.--
                    (A) Submission.--The Governor shall submit a 
                modification of the State plan or other request for 
                funds described in guidance in subsection (b) to the 
                Secretary of Labor not later than 30 days after the 
                issuance of such guidance. The State plan modification 
                or request for funds required under this subsection may 
                be submitted in conjunction with the State plan 
                required under section 1264.
                    (B) Approval.--The Secretary of Labor shall approve 
                the plan or request submitted under subparagraph (A) 
                within 30 days after submission, unless the Secretary 
                determines that the plan or request is inconsistent 
                with the requirements of this section. If the Secretary 
                has not made a determination within 30 days, the plan 
                or request shall be considered approved. If the plan or 
                request is disapproved, the Secretary may provide a 
                reasonable period of time in which a disapproved plan 
                or request may be amended and resubmitted for approval. 
                If the plan or request is approved, the Secretary shall 
                allot funds to States within 30 days after such 
                approval.
            (3) Modifications to state plan or request.--The Governor 
        may submit further modifications to a State plan or request for 
        funds identified under subsection (b) to carry out this section 
        in accordance with the requirements of this section.
    (e) Within-State Allocation and Administration.--
            (1) In general.--Of the funds allotted to the State under 
        subsection (c), the Governor--
                    (A) may reserve up to 5 percent of the allotment 
                for administration and technical assistance; and
                    (B) shall allocate the remainder of the allotment 
                among local workforce investment areas within the State 
                in accordance with the factors identified in section 
                1264(b)(2), except that for purposes of such allocation 
                references to a State in such paragraph shall be deemed 
                to be references to a local workforce investment area 
                and references to all States shall be deemed to be 
                references to all local areas in the State involved. 
                Not more than 10 percent of the funds allocated to a 
                local workforce investment area may be used for the 
                costs of administration of this section.
            (2) Local plan.--
                    (A) Submission.--In order to receive an allocation 
                under paragraph (1)(B), the local workforce investment 
                board, in partnership with the chief elected official 
                for the local workforce investment area involved, shall 
                submit to the Governor a modification to a local plan 
                approved under section 108 of the Workforce Innovation 
                and Opportunity Act, or other form of request for funds 
                as may be identified in the guidance issued under 
                subsection (b), not later than 30 days after the 
                submission by the State of the modification to the 
                State plan or other request for funds identified in 
                subsection (b), describing the strategies and 
                activities to be carried out under this section.
                    (B) Approval.--The Governor shall approve the local 
                plan submitted under subparagraph (A) within 30 days 
                after submission, unless the Governor determines that 
                the plan is inconsistent with requirements of this 
                section. If the Governor has not made a determination 
                within 30 days, the plan shall be considered approved. 
                If the plan is disapproved, the Governor may provide a 
                reasonable period of time in which a disapproved plan 
                may be amended and resubmitted for approval. The 
                Governor shall allocate funds to local workforce 
                investment areas with approved plans within 30 days 
                after approval.
            (3) Reallocation.--If a local workforce investment board 
        does not submit a local plan modification (or other request for 
        funds identified in guidance under subsection (b)) by the time 
        specified in paragraph (2), or does not receive approval of a 
        local plan, the amount the local workforce investment area 
        would have been eligible to receive pursuant to the formula 
        under paragraph (1)(B) shall be allocated to local workforce 
        investment areas that receive approval of the local plan 
        modification or request for funds under paragraph (2). Such 
        reallocations shall be made in accordance with the relative 
        share of the allocations to such local workforce investment 
        areas applying the formula factors described under paragraph 
        (1)(B).
    (f) Use of Funds.--
            (1) In general.--The funds provided under this section 
        shall be used--
                    (A) to provide summer employment opportunities for 
                low-income youth, ages 16 through 24, with direct 
                linkages to academic and occupational learning, and may 
                include the provision of supportive services, such as 
                transportation or child care, necessary to enable such 
                youth to participate; and
                    (B) to provide year-round employment opportunities, 
                which may be combined with other activities authorized 
                under section 129 of the Workforce Innovation and 
                Opportunity Act, to low-income youth, ages 16 through 
                24, with a priority to out-of-school youth who are--
                            (i) high school dropouts; or
                            (ii) recipients of a secondary school 
                        diploma or its equivalent but who are basic 
                        skills deficient unemployed or underemployed.
            (2) Program priorities.--In administering the funds under 
        this section, the local board and local chief elected officials 
        shall give a priority to--
                    (A) identifying employment opportunities that are--
                            (i) in emerging or in-demand occupations in 
                        the local workforce investment area; or
                            (ii) in the public or nonprofit sector that 
                        meet community needs; and
                    (B) linking year-round program participants to 
                training and educational activities that will provide 
                such participants an industry-recognized certificate or 
                credential.
            (3) Performance accountability.--For activities funded 
        under this section, in lieu of the requirements described in 
        section 116 of the Workforce Innovation and Opportunity Act, 
        State and local workforce investment areas shall provide such 
        reports as the Secretary of Labor may require regarding the 
        performance outcomes described in section 1267(a)(5).

SEC. 1266. WORK-BASED EMPLOYMENT STRATEGIES OF DEMONSTRATED 
              EFFECTIVENESS.

    (a) In General.--From the funds available under section 1263(a)(3), 
the Secretary of Labor shall award grants on a competitive basis to 
eligible entities to carry out work-based strategies of demonstrated 
effectiveness.
    (b) Use of Funds.--The grants awarded under this section shall be 
used to support strategies and activities of demonstrated effectiveness 
that are designed to provide unemployed, low-income adults or low-
income youth with the skills that will lead to employment as part of or 
upon completion of participation in such activities. Such strategies 
and activities may include--
            (1) on-the-job training, registered apprenticeship 
        programs, or other programs that combine work with skills 
        development;
            (2) sector-based training programs that have been designed 
        to meet the specific requirements of an employer or group of 
        employers in that sector and where employers are committed to 
        hiring individuals upon successful completion of the training;
            (3) training that supports an industry sector or an 
        employer-based or labor-management committee industry 
        partnership which includes a significant work-experience 
        component;
            (4) acquisition of industry-recognized credentials in a 
        field identified by the State or local workforce investment 
        area as a growth sector or demand industry in which there are 
        likely to be significant job opportunities in the short term;
            (5) connections to immediate work opportunities, including 
        subsidized employment opportunities, or summer employment 
        opportunities for youth, that includes concurrent skills 
        training and other supports;
            (6) career academies that provide students with the 
        academic preparation and training, including paid internships 
        and concurrent enrollment in community colleges or other 
        postsecondary institutions, needed to pursue a career pathway 
        that leads to postsecondary credentials and high-demand jobs; 
        and
            (7) adult basic education and integrated basic education 
        and training models for low-skilled adults, hosted at community 
        colleges or at other sites, to prepare individuals for jobs 
        that are in demand in a local area.
    (c) Eligible Entity.--An eligible entity shall include a local 
chief elected official, in collaboration with the local workforce 
investment board for the local workforce investment area involved 
(which may include a partnership with of such officials and boards in 
the region and in the State), or an entity eligible to apply for an 
Indian and Native American grant under section 166 of the Workforce 
Innovation and Opportunity Act, and may include, in partnership with 
such officials, boards, and entities, the following--
            (1) employers or employer associations;
            (2) adult education providers and postsecondary educational 
        institutions, including community colleges;
            (3) community-based organizations;
            (4) joint labor-management committees;
            (5) work-related intermediaries; or
            (6) other appropriate organizations.
    (d) Application.--An eligible entity seeking to receive a grant 
under this section shall submit to the Secretary of Labor an 
application at such time, in such manner, and containing such 
information as the Secretary may require. At a minimum, the application 
shall--
            (1) describe the strategies and activities of demonstrated 
        effectiveness that the eligible entities will carry out to 
        provide unemployed, low-income adults and low-income youth with 
        the skills that will lead to employment upon completion of 
        participation in such activities;
            (2) describe the requirements that will apply relating to 
        the eligibility of unemployed, low-income adults or low-income 
        youth, consistent with paragraphs (4) and (6) of section 1268, 
        for activities carried out under this section, which may 
        include criteria to target assistance to particular categories 
        of such adults and youth, such as individuals with disabilities 
        or individuals who have exhausted all rights to unemployment 
        compensation;
            (3) describe how the strategies and activities address the 
        needs of the target populations identified in paragraph (2) and 
        the needs of employers in the local area;
            (4) describe the expected outcomes to be achieved by 
        implementing the strategies and activities;
            (5) provide evidence that the funds provided may be 
        expended expeditiously and efficiently to implement the 
        strategies and activities;
            (6) describe how the strategies and activities will be 
        coordinated with other Federal, State and local programs 
        providing employment, education and supportive activities;
            (7) provide evidence of employer commitment to participate 
        in the activities funded under this section, including 
        identification of anticipated occupational and skill needs;
            (8) provide assurances that the grant recipient will report 
        such information as the Secretary may require relating to 
        fiscal, performance and other matters that the Secretary 
        determines is necessary to effectively monitor the activities 
        carried out under this section; and
            (9) provide assurances that the use of the funds provided 
        under this section will comply with the labor standards and 
        protections described section 1267(a).
    (e) Priority in Awards.--In awarding grants under this section, the 
Secretary of Labor shall give a priority to applications submitted by 
eligible entities from areas of high poverty and high unemployment, as 
defined by the Secretary, such as Public Use Microdata Areas (PUMAs) as 
designated by the Census Bureau.
    (f) Coordination of Federal Administration.--The Secretary of Labor 
shall administer this section in coordination with the Secretary of 
Education, Secretary of Health and Human Services, and other 
appropriate agency heads, to ensure the effective implementation of 
this section.

SEC. 1267. GENERAL REQUIREMENTS.

    (a) Labor Standards and Protections.--Activities provided with 
funds under this Act shall be subject to the requirements and 
restrictions, including the labor standards, described in section 181 
of the Workforce Innovation and Opportunity Act and the 
nondiscrimination provisions of section 188 of such Act, in addition to 
other applicable Federal laws.
    (b) Reporting.--The Secretary may require the reporting of 
information relating to fiscal, performance and other matters that the 
Secretary determines is necessary to effectively monitor the activities 
carried out with funds provided under this Act. At a minimum, grantees 
and subgrantees shall provide information relating to--
            (1) the number individuals participating in activities with 
        funds provided under this Act and the number of such 
        individuals who have completed such participation;
            (2) the expenditures of funds provided under the Act;
            (3) the number of jobs created pursuant to the activities 
        carried out under this Act;
            (4) the demographic characteristics of individuals 
        participating in activities under this Act; and
            (5) the performance outcomes of individuals participating 
        in activities under this Act, including--
                    (A) for adults participating in activities funded 
                under section 1264 of this Act--
                            (i) entry in unsubsidized employment;
                            (ii) retention in unsubsidized employment; 
                        and
                            (iii) earnings in unsubsidized employment;
                    (B) for low-income youth participating in summer 
                employment activities under sections 1265 and 1266--
                            (i) work readiness skill attainment using 
                        an employer validated checklist; and
                            (ii) placement in or return to secondary or 
                        postsecondary education or training, or entry 
                        into unsubsidized employment;
                    (C) for low-income youth participating in year-
                round employment activities under section 1265 or in 
                activities under section 1266--
                            (i) placement in or return to post-
                        secondary education;
                            (ii) attainment of high school diploma or 
                        its equivalent;
                            (iii) attainment of an industry-recognized 
                        credential; and
                            (iv) entry into unsubsidized employment, 
                        retention, and earnings as described in 
                        subparagraph (A); and
                    (D) for unemployed, low-income adults participating 
                in activities under section 1266--
                            (i) entry into unsubsidized employment, 
                        retention, and earnings as described in 
                        subparagraph (A); and
                            (ii) the attainment of industry-recognized 
                        credentials.
    (c) Activities Required To Be Additional.--Funds provided under 
this Act shall only be used for activities that are in addition to 
activities that would otherwise be available in the State or local area 
in the absence of such funds.
    (d) Additional Requirements.--The Secretary of Labor may establish 
such additional requirements as the Secretary determines may be 
necessary to ensure fiscal integrity, effective monitoring, and the 
appropriate and prompt implementation of the activities under this Act.
    (e) Report of Information and Evaluations to Congress and the 
Public.--The Secretary of Labor shall provide to the appropriate 
Committees of the Congress and make available to the public the 
information reported pursuant to subsection (b) and the evaluations of 
activities carried out pursuant to the funds reserved under section 
1263(b).

SEC. 1268. DEFINITIONS.

    In this subtitle:
            (1) Local chief elected official.--The term ``local chief 
        elected official'' means the chief elected executive officer of 
        a unit of local government in a local workforce investment area 
        or in the case where more than one unit of general government, 
        the individuals designated under an agreement described in 
        section 107(c)(1)(B) of the Workforce Innovation and 
        Opportunity Act.
            (2) Local workforce investment area.--The term ``local 
        workforce investment area'' means such area designated under 
        section 106 of the Workforce Innovation and Opportunity Act.
            (3) Local workforce investment board.--The term ``local 
        workforce investment board'' means such board established under 
        section 107 of the Workforce Innovation and Opportunity Act.
            (4) Low-income youth.--The term ``low-income youth'' means 
        an individual who--
                    (A) is age 16 through 24;
                    (B) meets the definition of a low-income individual 
                provided in section 3 of the Workforce Innovation and 
                Opportunity Act, except that States, local workforce 
                investment areas under section 1265 and eligible 
                entities under section 1266(c), subject to approval in 
                the applicable State plans, local plans, and 
                applications for funds, may increase the income level 
                specified in subparagraph (B)(i) of such section to an 
                amount not in excess of 200 percent of the poverty line 
                for purposes of determining eligibility for 
                participation in activities under sections 1265 and 
                1266 of this Act; and
                    (C) is in one or more of the categories specified 
                in section 101(13)(C) of the Workforce Investment Act 
                of 1998, as in effect on the day before the date of 
                enactment of the Workforce Innovation and Opportunity 
                Act.
            (5) Outlying area.--The term ``outlying area'' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the Republic 
        of Palau.
            (6) Unemployed, low-income adult.--The term ``unemployed, 
        low-income adult'' means an individual who--
                    (A) is age 18 or older;
                    (B) is without employment and is seeking assistance 
                under this subtitle to obtain employment; and
                    (C) meets the definition of a ``low-income 
                individual'' under section 3 of the Workforce 
                Innovation and Opportunity Act, except that for that 
                States, local entities described in section 1264(d)(1) 
                and eligible entities under section 1266(c), subject to 
                approval in the applicable State plans, local plans, 
                and applications for funds, may increase the income 
                level specified in subparagraph (B)(i) of such section 
                to an amount not in excess of 200 percent of the 
                poverty line for purposes of determining eligibility 
                for participation in activities under sections 1264 and 
                1266 of this Act.
            (7) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and 
        Puerto Rico.

Subtitle D--Prohibition of Discrimination in Employment on the Basis of 
                  an Individual's Status as Unemployed

SEC. 1271. SHORT TITLE.

    This subtitle may be cited as the ``Fair Employment Opportunity Act 
of 2017''.

SEC. 1272. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that denial of employment 
opportunities to individuals because of their status as unemployed is 
discriminatory and burdens commerce by--
            (1) reducing personal consumption and undermining economic 
        stability and growth;
            (2) squandering human capital essential to the Nation's 
        economic vibrancy and growth;
            (3) increasing demands for Federal and State unemployment 
        insurance benefits, reducing trust fund assets, and leading to 
        higher payroll taxes for employers, cuts in benefits for 
        jobless workers, or both;
            (4) imposing additional burdens on publicly funded health 
        and welfare programs; and
            (5) depressing income, property, and other tax revenues 
        that the Federal Government, States, and localities rely on to 
        support operations and institutions essential to commerce.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to prohibit employers and employment agencies from 
        disqualifying an individual from employment opportunities 
        because of that individual's status as unemployed;
            (2) to prohibit employers and employment agencies from 
        publishing or posting any advertisement or announcement for an 
        employment opportunity that indicates that an individual's 
        status as unemployed disqualifies that individual for the 
        opportunity; and
            (3) to eliminate the burdens imposed on commerce due to the 
        exclusion of such individuals from employment.

SEC. 1273. DEFINITIONS.

    As used in this subtitle--
            (1) the term ``affected individual'' means any person who 
        was subject to an unlawful employment practice solely because 
        of that individual's status as unemployed;
            (2) the term ``Commission'' means the Equal Employment 
        Opportunity Commission;
            (3) the term ``employee'' means--
                    (A) an employee as defined in section 701(f) of the 
                Civil Rights Act of 1964 (42 U.S.C. 2000e(f));
                    (B) a State employee to which section 302(a)(1) of 
                the Government Employee Rights Act of 1991 (42 U.S.C. 
                2000e-16b(a)(1)) applies;
                    (C) a covered employee, as defined in section 101 
                of the Congressional Accountability Act of 1995 (2 
                U.S.C. 1301) or section 411(c) of title 3, United 
                States Code; or
                    (D) an employee or applicant to which section 
                717(a) of the Civil Rights Act of 1964 (42 U.S.C. 
                2000e-16(a)) applies;
            (4) the term ``employer'' means--
                    (A) a person engaged in an industry affecting 
                commerce (as defined in section 701(h) of the Civil 
                Rights Act of 1964 (42 U.S.C. 2000e(h))) who has 15 or 
                more employees for each working day in each of 20 or 
                more calendar weeks in the current or preceding 
                calendar year, and any agent of such a person, but does 
                not include a bona fide private membership club that is 
                exempt from taxation under section 501(c) of the 
                Internal Revenue Code of 1986;
                    (B) an employing authority to which section 
                302(a)(1) of the Government Employee Rights Act of 1991 
                applies;
                    (C) an employing office, as defined in section 101 
                of the Congressional Accountability Act of 1995 or 
                section 411(c) of title 3, United States Code; or
                    (D) an entity to which section 717(a) of the Civil 
                Rights Act of 1964 (42 U.S.C. 2000e-16(a)) applies;
            (5) the term ``employment agency'' means any person 
        regularly undertaking with or without compensation to procure 
        employees for an employer or to procure for individuals 
        opportunities to work as employees for an employer and includes 
        an agent of such a person, and any person who maintains an 
        Internet website or print medium that publishes advertisements 
        or announcements of openings in jobs for employees;
            (6) the term ``person'' has the meaning given the term in 
        section 701(a) of the Civil Rights Act of 1964 (42 U.S.C. 
        2000e(a)); and
            (7) the term ``status as unemployed'', used with respect to 
        an individual, means that the individual, at the time of 
        application for employment or at the time of action alleged to 
        violate this subtitle, does not have a job, is available for 
        work and is searching for work.

SEC. 1274. PROHIBITED ACTS.

    (a) Employers.--It shall be an unlawful employment practice for an 
employer to--
            (1) publish in print, on the Internet, or in any other 
        medium, an advertisement or announcement for an employee for 
        any job that includes--
                    (A) any provision stating or indicating that an 
                individual's status as unemployed disqualifies the 
                individual for any employment opportunity; or
                    (B) any provision stating or indicating that an 
                employer will not consider or hire an individual for 
                any employment opportunity based on that individual's 
                status as unemployed;
            (2) fail or refuse to consider for employment, or fail or 
        refuse to hire, an individual as an employee because of the 
        individual's status as unemployed; or
            (3) direct or request that an employment agency take an 
        individual's status as unemployed into account to disqualify an 
        applicant for consideration, screening, or referral for 
        employment as an employee.
    (b) Employment Agencies.--It shall be an unlawful employment 
practice for an employment agency to--
            (1) publish, in print or on the Internet or in any other 
        medium, an advertisement or announcement for any vacancy in a 
        job, as an employee, that includes--
                    (A) any provision stating or indicating that an 
                individual's status as unemployed disqualifies the 
                individual for any employment opportunity; or
                    (B) any provision stating or indicating that the 
                employment agency or an employer will not consider or 
                hire an individual for any employment opportunity based 
                on that individual's status as unemployed;
            (2) screen, fail or refuse to consider, or fail or refuse 
        to refer an individual for employment as an employee because of 
        the individual's status as unemployed; or
            (3) limit, segregate, or classify any individual in any 
        manner that would limit or tend to limit the individual's 
        access to information about jobs, or consideration, screening, 
        or referral for jobs, as employees, solely because of an 
        individual's status as unemployed.
    (c) Interference With Rights, Proceedings or Inquiries.--It shall 
be unlawful for any employer or employment agency to--
            (1) interfere with, restrain, or deny the exercise of or 
        the attempt to exercise, any right provided under this 
        subtitle; or
            (2) fail or refuse to hire, to discharge, or in any other 
        manner to discriminate against any individual, as an employee, 
        because such individual--
                    (A) opposed any practice made unlawful by this 
                subtitle;
                    (B) has asserted any right, filed any charge, or 
                has instituted or caused to be instituted any 
                proceeding, under or related to this subtitle;
                    (C) has given, or is about to give, any information 
                in connection with any inquiry or proceeding relating 
                to any right provided under this subtitle; or
                    (D) has testified, or is about to testify, in any 
                inquiry or proceeding relating to any right provided 
                under this subtitle.
    (d) Construction.--Nothing in this subtitle is intended to preclude 
an employer or employment agency from considering an individual's 
employment history, or from examining the reasons underlying an 
individual's status as unemployed, in assessing an individual's ability 
to perform a job or in otherwise making employment decisions about that 
individual. Such consideration or examination may include an assessment 
of whether an individual's employment in a similar or related job for a 
period of time reasonably proximate to the consideration of such 
individual for employment is job-related or consistent with business 
necessity.

SEC. 1275. ENFORCEMENT.

    (a) Enforcement Powers.--With respect to the administration and 
enforcement of this subtitle--
            (1) the Commission shall have the same powers as the 
        Commission has to administer and enforce--
                    (A) title VII of the Civil Rights Act of 1964 (42 
                U.S.C. 2000e et seq.); or
                    (B) sections 302 and 304 of the Government Employee 
                Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c), 
                in the case of an affected individual who would be 
                covered by such title, or by section 302(a)(1) of the 
                Government Employee Rights Act of 1991 (42 U.S.C. 
                2000e-16b(a)(1)), respectively;
            (2) the Librarian of Congress shall have the same powers as 
        the Librarian of Congress has to administer and enforce title 
        VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) 
        in the case of an affected individual who would be covered by 
        such title;
            (3) the Board (as defined in section 101 of the 
        Congressional Accountability Act of 1995 (2 U.S.C. 1301)) shall 
        have the same powers as the Board has to administer and enforce 
        the Congressional Accountability Act of 1995 (2 U.S.C. 1301 et 
        seq.) in the case of an affected individual who would be 
        covered by section 201(a)(1) of such Act (2 U.S.C. 1311(a)(1));
            (4) the Attorney General shall have the same powers as the 
        Attorney General has to administer and enforce--
                    (A) title VII of the Civil Rights Act of 1964 (42 
                U.S.C. 2000e et seq.); or
                    (B) sections 302 and 304 of the Government Employee 
                Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c); 
                in the case of an affected individual who would be 
                covered by such title, or of section 302(a)(1) of the 
                Government Employee Rights Act of 1991 (42 U.S.C. 
                2000e-16b(a)(1)), respectively;
            (5) the President, the Commission, and the Merit Systems 
        Protection Board shall have the same powers as the President, 
        the Commission, and the Board, respectively, have to administer 
        and enforce chapter 5 of title 3, United States Code, in the 
        case of an affected individual who would be covered by section 
        411 of such title; and
            (6) a court of the United States shall have the same 
        jurisdiction and powers as the court has to enforce--
                    (A) title VII of the Civil Rights Act of 1964 (42 
                U.S.C. 2000e et seq.) in the case of a claim alleged by 
                such individual for a violation of such title;
                    (B) sections 302 and 304 of the Government Employee 
                Rights Act of 1991 (42 U.S.C. 2000e-16b and 2000e-16c) 
                in the case of a claim alleged by such individual for a 
                violation of section 302(a)(1) of such Act (42 U.S.C. 
                2000e-16b(a)(1));
                    (C) the Congressional Accountability Act of 1995 (2 
                U.S.C. 1301 et seq.) in the case of a claim alleged by 
                such individual for a violation of section 201(a)(1) of 
                such Act (2 U.S.C. 1311(a)(1)); and
                    (D) chapter 5 of title 3, United States Code, in 
                the case of a claim alleged by such individual for a 
                violation of section 411 of such title.
    (b) Procedures.--The procedures applicable to a claim alleged by an 
individual for a violation of this subtitle are--
            (1) the procedures applicable for a violation of title VII 
        of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) in 
        the case of a claim alleged by such individual for a violation 
        of such title;
            (2) the procedures applicable for a violation of section 
        302(a)(1) of the Government Employee Rights Act of 1991 (42 
        U.S.C. 2000e-16b(a)(1)) in the case of a claim alleged by such 
        individual for a violation of such section;
            (3) the procedures applicable for a violation of section 
        201(a)(1) of the Congressional Accountability Act of 1995 (2 
        U.S.C. 1311(a)(1)) in the case of a claim alleged by such 
        individual for a violation of such section; and
            (4) the procedures applicable for a violation of section 
        411 of title 3, United States Code, in the case of a claim 
        alleged by such individual for a violation of such section.
    (c) Remedies.--
            (1) In any claim alleging a violation of section 1274(a)(1) 
        or 1274(b)(1) of this subtitle, an individual, or any person 
        acting on behalf of the individual as set forth in section 
        1275(a) of this subtitle, may be awarded, as appropriate:
                    (A) An order enjoining the respondent from engaging 
                in the unlawful employment practice.
                    (B) Reimbursement of costs expended as a result of 
                the unlawful employment practice.
                    (C) An amount in liquidated damages not to exceed 
                $1,000 for each day of the violation.
                    (D) Reasonable attorney's fees (including expert 
                fees) and costs attributable to the pursuit of a claim 
                under this subtitle, except that no person identified 
                in section 733(a) of this subtitle shall be eligible to 
                receive attorney's fees.
            (2) In any claim alleging a violation of any other 
        subsection of this subtitle, an individual, or any person 
        acting on behalf of the individual as set forth in section 
        1275(a) of this subtitle, may be awarded, as appropriate, the 
        remedies available for a violation of title VII of the Civil 
        Rights Act of 1964 (42 U.S.C. 2000e et seq.), section 302(a)(1) 
        of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e-
        16b(a)(1)), section 201(a)(1) of the Congressional 
        Accountability Act of 1995 (2 U.S.C. 1311(a)(1)), and section 
        411 of title 3, United States Code, except that in a case in 
        which wages, salary, employment benefits, or other compensation 
        have not been denied or lost to the individual, damages may be 
        awarded in an amount not to exceed $5,000.

SEC. 1276. FEDERAL AND STATE IMMUNITY.

    (a) Abrogation of State Immunity.--A State shall not be immune 
under the 11th Amendment to the Constitution from a suit brought in a 
Federal court of competent jurisdiction for a violation of this 
subtitle.
    (b) Waiver of State Immunity.--
            (1) In general.--
                    (A) Waiver.--A State's receipt or use of Federal 
                financial assistance for any program or activity of a 
                State shall constitute a waiver of sovereign immunity, 
                under the 11th Amendment to the Constitution or 
                otherwise, to a suit brought by an employee or 
                applicant for employment of that program or activity 
                under this subtitle for a remedy authorized under 
                section 1275(c) of this subtitle.
                    (B) Definition.--In this paragraph, the term 
                ``program or activity'' has the meaning given the term 
                in section 606 of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d-4a).
            (2) Effective date.--With respect to a particular program 
        or activity, paragraph (1) applies to conduct occurring on or 
        after the day, after the date of enactment of this Act, on 
        which a State first receives or uses Federal financial 
        assistance for that program or activity.
    (c) Remedies Against State Officials.--An official of a State may 
be sued in the official capacity of the official by any employee or 
applicant for employment who has complied with the applicable 
procedures of this subtitle, for relief that is authorized under this 
subtitle.
    (d) Remedies Against the United States and the States.--
Notwithstanding any other provision of this subtitle, in an action or 
administrative proceeding against the United States or a State for a 
violation of this subtitle, remedies (including remedies at law and in 
equity) are available for the violation to the same extent as such 
remedies would be available against a nongovernmental entity.

SEC. 1277. RELATIONSHIP TO OTHER LAWS.

    This subtitle shall not invalidate or limit the rights, remedies, 
or procedures available to an individual claiming discrimination 
prohibited under any other Federal law or regulation or any law or 
regulation of a State or political subdivision of a State.

SEC. 1278. SEVERABILITY.

    If any provision of this subtitle, or the application of the 
provision to any person or circumstance, is held to be invalid, the 
remainder of this subtitle and the application of the provision to any 
other person or circumstances shall not be affected by the invalidity.

SEC. 1279. EFFECTIVE DATE.

    This subtitle shall take effect on the date of enactment of this 
Act and shall not apply to conduct occurring before the effective date.

                    TITLE XIII--LIVING AMERICAN WAGE

SEC. 1301. SHORT TITLE.

    This title may be cited as the ``Raise the Wage Act''.

SEC. 1302. MINIMUM WAGE INCREASES.

    (a) In General.--Section 6(a)(1) of the Fair Labor Standards Act of 
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
            ``(1) except as otherwise provided in this section, not 
        less than--
                    ``(A) $9.25 an hour, beginning on the effective 
                date under section 7 of the Raise the Wage Act;
                    ``(B) $10.10 an hour, beginning 1 year after such 
                effective date;
                    ``(C) $11.00 an hour, beginning 2 years after such 
                effective date;
                    ``(D) $12.00 an hour, beginning 3 years after such 
                effective date;
                    ``(E) $13.00 an hour, beginning 4 years after such 
                effective date;
                    ``(F) $13.50 an hour, beginning 5 years after such 
                effective date;
                    ``(G) $14.25 an hour, beginning 6 years after such 
                effective date;
                    ``(H) $15.00 an hour, beginning 7 years after such 
                effective date; and
                    ``(I) beginning on the date that is 8 years after 
                such effective date, and annually thereafter, the 
                amount determined by the Secretary under subsection 
                (h);''.
    (b) Determination Based on Increase in the Median Hourly Wage of 
All Employees.--Section 6 of the Fair Labor Standards Act of 1938 (29 
U.S.C. 206) is amended by adding at the end the following:
    ``(h)(1) Not later than each date that is 90 days before a new 
minimum wage determined under subsection (a)(1)(I) is to take effect, 
the Secretary shall determine the minimum wage to be in effect under 
this subsection for each period described in subsection (a)(1)(I). The 
wage determined under this subsection for a year shall be--
            ``(A) not less than the amount in effect under subsection 
        (a)(1) on the date of such determination;
            ``(B) increased from such amount by the annual percentage 
        increase, if any, in the median hourly wage of all employees as 
        determined by the Bureau of Labor Statistics; and
            ``(C) rounded to the nearest multiple of $0.05.
    ``(2) In calculating the annual percentage increase in the median 
hourly wage of all employees for purposes of paragraph (1)(B), the 
Secretary, through the Bureau of Labor Statistics, shall compile data 
on the hourly wages of all employees to determine such a median hourly 
wage and compare such median hourly wage for the most recent year for 
which data are available with the median hourly wage determined for the 
preceding year.''.

SEC. 1303. TIPPED EMPLOYEES.

    (a) Base Minimum Wage for Tipped Employees.--Section 3(m)(1) of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(1)) is amended to 
read as follows:
            ``(1) the cash wage paid such employee, which for purposes 
        of such determination shall be not less than--
                    ``(A) for the 1-year period beginning on the 
                effective date under section 7 of the Raise the Wage 
                Act, $4.15 an hour;
                    ``(B) for each succeeding 1-year period until the 
                hourly wage under this paragraph equals the wage in 
                effect under section 6(a)(1) for such period, an hourly 
                wage equal to the amount determined under this 
                paragraph for the preceding year, increased by the 
                lesser of--
                            ``(i) $1.15; or
                            ``(ii) the amount necessary for the wage in 
                        effect under this paragraph to equal the wage 
                        in effect under section 6(a)(1) for such 
                        period, rounded to the nearest multiple of 
                        $0.05; and
                    ``(C) for each succeeding 1-year period after the 
                increase made pursuant to subparagraph (B)(ii), the 
                minimum wage in effect under section 6(a)(1); and''.
    (b) Tips Retained by Employees.--Section 3(m) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 203(m)) is amended--
            (1) in the second sentence of the matter following 
        paragraph (2), by striking ``of this subsection, and all tips 
        received by such employee have been retained by the employee'' 
        and inserting ``of this subsection. Any employee shall have the 
        right to retain any tips received by such employee''; and
            (2) by adding at the end the following: ``An employer shall 
        inform each employee of the right and exception provided under 
        the preceding sentence.''.
    (c) Scheduled Repeal of Separate Minimum Wage for Tipped 
Employees.--
            (1) Tipped employees.--Section 3(m) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 203(m)), as amended by 
        subsections (a) and (b), is further amended by striking the 
        sentence beginning with ``In determining the wage an employer 
        is required to pay a tipped employee,'' and all that follows 
        through ``of this subsection.'' and inserting ``The wage 
        required to be paid to a tipped employee shall be the wage set 
        forth in section 6(a)(1).''.
            (2) Publication of notice.--Section 6(i) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(i)), as added by section 
        1305, is amended by striking ``or in accordance with 
        subparagraph (B) or (C) of section 3(m)(1) (as applicable),''.
            (3) Effective date.--The amendments made by paragraphs (1) 
        and (2) shall take effect on the date that is one day after the 
        date on which the hourly wage under section 3(m)(1)(C) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(1)(C)), as 
        amended by subsection (a), takes effect.

SEC. 1304. NEWLY HIRED EMPLOYEES WHO ARE LESS THAN 20 YEARS OLD.

    (a) Base Minimum Wage for Newly Hired Employees Who Are Less Than 
20 Years Old.--Section 6(g)(1) of the Fair Labor Standards Act of 1938 
(29 U.S.C. 206(g)(1)) is amended by striking ``a wage which is not less 
than $4.25 an hour.'' and inserting the following: ``a wage at a rate 
that is not less than--
                    ``(A) for the 1-year period beginning on the 
                effective date under section 7 of the Raise the Wage 
                Act, $5.00 an hour;
                    ``(B) for each succeeding 1-year period until the 
                hourly wage under this paragraph equals the wage in 
                effect under section 6(a)(1) for such period, an hourly 
                wage equal to the amount determined under this 
                paragraph for the preceding year, increased by the 
                lesser of--
                            ``(i) $1.05; or
                            ``(ii) the amount necessary for the wage in 
                        effect under this paragraph to equal the wage 
                        in effect under section 6(a)(1) for such 
                        period, rounded to the nearest multiple of 
                        $0.05; and
                    ``(C) for each succeeding 1-year period after the 
                increase made pursuant to subparagraph (B)(ii), the 
                minimum wage in effect under section 6(a)(1).''.
    (b) Scheduled Repeal of Separate Minimum Wage for Newly Hired 
Employees Who Are Less Than 20 Years Old.--
            (1) In general.--Section 6(g)(1) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(g)(1)), as amended by 
        subsection (a), shall be repealed effective on the date 
        provided in paragraph (3).
            (2) Publication of notice.--Section 6(i) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(i)), as amended by section 
        1303(c)(2), is further amended by striking ``or subparagraph 
        (B) or (C) of section 6(g)(1) (as applicable),''.
            (3) Effective date.--The repeal and amendment made by 
        paragraphs (1) and (2), respectively, shall take effect on the 
        date that is one day after the date on which the hourly wage 
        under section 6(g)(1)(C) of the Fair Labor Standards Act, as 
        amended by subsection (a), takes effect.

SEC. 1305. PUBLICATION OF NOTICE.

    Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206), 
as amended by the preceding sections, is further amended by adding at 
the end the following:
    ``(i) Not later than 60 days prior to the effective date of any 
increase in the required wage determined under subsection (h), or in 
accordance with subparagraph (B) or (C) of section 3(m)(1) (as 
applicable), section 14(c)(1)(A) (as applicable), or subparagraph (B) 
or (C) of section 6(g)(1) (as applicable), the Secretary shall publish 
in the Federal Register and on the website of the Department of Labor a 
notice announcing each increase in such required wage.''.

SEC. 1306. PROMOTING ECONOMIC SELF-SUFFICIENCY FOR INDIVIDUALS WITH 
              DISABILITIES.

    (a) Wages.--
            (1) Transition to fair wages for individuals with 
        disabilities.--Subparagraph (A) of section 14(c)(1) of the Fair 
        Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) is amended to 
        read as follows:
                    ``(A) at a rate that equals, or exceeds, the 
                greater of--
                            ``(i)(I) $4.25 an hour, beginning 1 year 
                        after the date the wage rate specified in 
                        section 6(a)(1)(A) takes effect;
                            ``(II) $6.25 an hour, beginning 2 years 
                        after such date;
                            ``(III) $8.25 an hour, beginning 3 years 
                        after such date;
                            ``(IV) $10.25 an hour, beginning 4 years 
                        after such date;
                            ``(V) $12.25 an hour, beginning 5 years 
                        after such date; and
                            ``(VI) the wage rate in effect under 
                        section 6(a)(1), on the date that is 6 years 
                        after the date the wage specified in section 
                        6(a)(1)(A) takes effect; or
                            ``(ii) if applicable, the wage rate in 
                        effect on the day before the date of enactment 
                        of the Raise the Wage Act for the employment, 
                        under a special certificate issued under this 
                        paragraph, of the individual for whom the wage 
                        rate is being determined under this 
                        subparagraph,''.
            (2) Prohibition on new special certificates; sunset.--
        Section 14(c) of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 214(c)) (as amended by paragraph (1)) is further amended 
        by adding at the end the following:
            ``(6) Prohibition on new special certificates.--
        Notwithstanding paragraph (1), the Secretary shall not issue a 
        special certificate under this subsection to an employer that 
        was not issued a special certificate under this subsection 
        before the date of enactment of the Raise the Wage Act.
            ``(7) Sunset.--Beginning on the day after the date on which 
        the wage rate described in paragraph (1)(A)(i)(VI) takes 
        effect, the authority to issue special certificates under 
        paragraph (1) shall expire, and no special certificates issued 
        under paragraph (1) shall have any legal effect.
            ``(8) Transition assistance.--Upon request, the Secretary 
        shall provide--
                    ``(A) technical assistance and information to 
                employers issued a special certificate under this 
                subsection for the purposes of--
                            ``(i) transitioning the practices of such 
                        employers to comply with this subsection, as 
                        amended by the Raise the Wage Act; and
                            ``(ii) ensuring continuing employment 
                        opportunities for individuals with disabilities 
                        receiving a special minimum wage rate under 
                        this subsection; and
                    ``(B) information to individuals employed at a 
                special minimum wage rate under this subsection, which 
                may include referrals to other Federal or State 
                entities with expertise in competitive integrated 
                employment.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of enactment of this Act.
    (b) Publication of Notice.--
            (1) Amendment.--Section 6(i) of the Fair Labor Standards 
        Act of 1938 (29 U.S.C. 206(i)), as amended by section 
        1304(b)(2), is further amended by striking ``section 
        14(c)(1)(A) (as applicable),''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the day after the date on which the wage 
        rate described in paragraph (1)(A)(i)(VI) of section 14(c) of 
        the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)), as 
        amended by subsection (a)(1), takes effect.

SEC. 1307. GENERAL EFFECTIVE DATE.

    Except as otherwise provided in this title or the amendments made 
by this title, this title and the amendments made by this title shall 
take effect on the first day of the third month that begins after the 
date of enactment of this Act.

                DIVISION E--ANTI-POVERTY TAX PROVISIONS

                 TITLE XIV--CHILD TAX CREDIT PERMANENCY

SEC. 1401. INFLATION ADJUSTMENT OF THE CHILD TAX CREDIT.

    (a) Inflation Adjustment.--Section 24 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new subsection:
    ``(g) Inflation Adjustment.--In the case of any taxable year 
beginning in a calendar year after 2017, the $1,000 amount contained in 
subsection (a) shall be increased by an amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined by substituting `calendar year 2016' for 
        `calendar year 1992' in subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be rounded 
to the nearest multiple of $50.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2017.

                   TITLE XV--EARNED INCOME TAX CREDIT

SEC. 1501. EXPANSION OF EARNED INCOME CREDIT.

    (a) Credit Percentages for Individuals With No Qualifying 
Children.--The item in the table in section 32(b)(1) of the Internal 
Revenue Code of 1986 under the column relating to the credit percentage 
is amended by striking ``7.65'' and inserting ``15.3''.
    (b) Phaseout Percentage for Individuals With No Qualifying 
Children.--The item in the table in section 32(b)(1) of the Internal 
Revenue Code of 1986 under the column relating to the phaseout 
percentage is amended by striking ``7.65'' and inserting ``15.3''.
    (c) Phaseout Amount.--
            (1) In general.--The item in the table in section 
        32(b)(2)(A) of the Internal Revenue Code of 1986 under the 
        column relating to the phaseout amount is amended by striking 
        ``$5,280'' and inserting ``$11,500''.
            (2) Inflation adjustment.--
                    (A) In general.--Section 32(j) of the Internal 
                Revenue Code of 1986 is amended by redesignating 
                paragraph (2) as paragraph (3) and by inserting after 
                paragraph (1) the following new paragraph:
            ``(2) Exception.--In the case of the amount in subsection 
        (b)(2)(A) under the column relating to the phaseout amount for 
        taxable years beginning after 2018, paragraph (1)(B)(i) shall 
        be applied by substituting `calendar year 2017' for `calendar 
        year 1995' and paragraph (1) shall not apply to such amount for 
        taxable years beginning in 2016.''.
                    (B) Conforming amendments.--Section 32(j) of the 
                Internal Revenue Code of 1986 is amended--
                            (i) in paragraph (1)(B)(i) by inserting 
                        ``except as provided in paragraph (2)'' before 
                        ``in the case of'', and
                            (ii) in paragraph (2)(A) by inserting ``or 
                        (2)'' after ``paragraph (1)''.
    (d) Expansion of Age Range of Eligible Individuals.--Section 
32(c)(1)(A)(ii)(II) of the Internal Revenue Code of 1986 is amended by 
striking ``age 25 but not attained age 65'' and inserting ``age 21 but 
not attained retirement age (as defined in section 216(l) of the Social 
Security Act)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

      TITLE XVI--CHILD CARE ACCESS AND REFUNDABILITY EXPANSION ACT

SEC. 1601. CREDIT FOR DEPENDENT CARE EXPENSES.

    (a) Credit Made Refundable.--
            (1) In general.--The Internal Revenue Code of 1986 is 
        amended by redesignating section 21 as section 36C and by 
        moving such section after section 36B.
            (2) Credit not allowed to nonresident aliens.--Section 
        36C(a)(1) of the Internal Revenue Code of 1986, as redesignated 
        by this section, is amended by inserting ``(other than a 
        nonresident alien)'' after ``In the case of an individual''.
            (3) Conforming amendments.--
                    (A) Section 23(f)(1) of such Code is amended by 
                striking ``section 21(e)'' and inserting ``section 
                36C(e)''.
                    (B) Section 35(g)(6) of such Code is amended by 
                striking ``section 21(e)'' and inserting ``section 
                36C(e)''.
                    (C) Section 36C(a)(1) of such Code, as redesignated 
                by this section, is amended by striking ``this 
                chapter'' and inserting ``this subtitle''.
                    (D) Section 129(a)(2)(C) of such Code is amended by 
                striking ``section 21(e)'' and inserting ``section 
                36C(e)''.
                    (E) Section 129(b)(2) of such Code is amended by 
                striking ``section 21(d)(2)'' and inserting ``section 
                36C(d)(2)''.
                    (F) Section 129(e)(1) of such Code is amended by 
                striking ``section 21(b)(2)'' and inserting ``section 
                36C(b)(2)''.
                    (G) Section 213(e) of such Code is amended by 
                striking ``section 21'' and inserting ``section 36C''.
                    (H) Section 6211(b)(4)(A) of such Code is amended 
                by inserting ``36C,'' after ``36B,''.
                    (I) Section 6213(g)(2)(H) of such Code is amended 
                by striking ``section 21'' and inserting ``section 
                36C''.
                    (J) Section 6213(g)(2)(L) of such Code is amended 
                by striking ``section 21, 24, 32, or 6428'' and 
                inserting ``section 24, 32, 36C, or 6428''.
                    (K) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``36C,'' 
                after ``36B,''.
                    (L) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of the Internal Revenue 
                Code of 1986 is amended by striking the item relating 
                to section 21.
                    (M) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                inserting after the item relating to section 36B the 
                following new item:

``Sec. 36C. Expenses for household and dependent care services 
                            necessary for gainful employment.''.
    (b) Inflation Adjustment of Income Thresholds for Credit 
Phasedown.--Section 36C(e) of the Internal Revenue Code of 1986, as 
redesignated by this section, is amended by adding at the end the 
following new paragraph:
            ``(11) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2017, the $2,000 
                amount and the $15,000 amount in subsection (a)(2) 
                shall each be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2016' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of--
                            ``(i) in the case of the $2,000 amount, 
                        $50, and
                            ``(ii) in the case of the $15,000 amount, 
                        $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

SEC. 1602. AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT 
              OF 1990.

    (a) Authorization of Appropriations.--Section 658B of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is 
amended by striking ``$2,668,534,969 for fiscal year 2019, and 
$2,748,591,018 for fiscal year 2020'' and inserting ``$4,100,000,000 
for fiscal year 2019, and for each subsequent fiscal year the amount 
authorized to be appropriated for the previous fiscal year adjusted by 
the annual increase in the rate of inflation for such previous fiscal 
year''.
    (b) Eligibility for Child Care Benefits.--The Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is 
amended--
            (1) in section 658E(c)(2)(N) by striking ``85 percent'' 
        each place it appears and inserting ``150 percent''; and
            (2) in section 658P(4)(B) by striking ``85 percent'' and 
        inserting ``150 percent''.

                       DIVISION I--MISCELLANEOUS

                    TITLE I--POVERTY IMPACT TRIGGER

SEC. 1701. CERTAIN POVERTY IMPACT LEGISLATION SUBJECT TO POINT OF 
              ORDER.

    Rule XXI of the Rules of the House of Representatives is amended by 
adding at the end the following new clause:
``Certain legislation reported by committees
    ``12. It shall not be in order to consider a bill or joint 
resolution of a public nature authorizing an appropriation of 
$10,000,000 or more, unless--
            ``(a) the committee report accompanying the bill or joint 
        resolution includes a CBO Poverty Index Division impact 
        statement; or
            ``(b) the chair of the committee reporting the bill or 
        joint resolution submits such statement to be published in the 
        Congressional Record before consideration of the bill or joint 
        resolution.''.

SEC. 1702. CONGRESSIONAL BUDGET OFFICE POVERTY IMPACT DIVISION.

    (a) In General.--Section 202 of the Congressional Budget Act of 
1974 (2 U.S.C. 602) is amended by adding at the end the following new 
subsection:
    ``(h) CBO Poverty Impact Division.--
            ``(1) Creation.--There is established within the Office the 
        CBO Poverty Impact Division (hereinafter in this subsection 
        referred to as the `Division').
            ``(2) Duties and functions.--
                    ``(A) Preparation and submission of impact 
                statement.--When a chair of a committee of the House of 
                Representatives submits a written request to the 
                Division to prepare and submit to the committee a CBO 
                Poverty Index Division impact statement, the Division 
                shall prepare and submit such statement to the 
                committee not later than 30 days after such request.
                    ``(B) Content of impact statement.--A CBO Poverty 
                Index Division impact statement shall include the 
                following:
                            ``(i) A projected ratio equal to the amount 
                        of appropriations authorized in the bill or 
                        joint resolution that will benefit individuals 
                        and families below the poverty threshold over 
                        the total amount of appropriations authorized 
                        by the bill or joint resolution.
                            ``(ii) A projection of the number of 
                        individual and family incomes--
                                    ``(I) that may decrease below the 
                                poverty threshold because of the bill 
                                or joint resolution; and
                                    ``(II) that may increase above the 
                                poverty threshold because of the bill 
                                or joint resolution.
                            ``(iii) A projection as to how the 
                        legislation improves access to basic human 
                        services, including health care, housing, and 
                        education.
                    ``(C) Poverty threshold defined.--In this 
                subsection, the term `poverty threshold' means an 
                income level below 200 percent of the poverty line (as 
                defined in section 673(2) of the Community Services 
                Block Grant Act).''.

SEC. 1703. EXERCISE OF RULEMAKING POWERS.

    Section 1901 of this title is enacted by the House of 
Representatives--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and as such it shall be considered as part of 
        the Rules of the House of Representatives and such rules shall 
        supersede other rules only to the extent that they are 
        inconsistent therewith; and
            (2) with the full recognition of the constitutional right 
        of the House of Representatives to change such rules at any 
        time, in the same manner, and to the same extent as in the case 
        of any other rule of the House of Representatives.

SEC. 1704. EFFECTIVE DATE.

    The amendments made by this title shall apply to any bill or joint 
resolution reported by a committee of the House of Representatives 
after the 90-day period beginning on the date of enactment of this Act.

   TITLE II--HALF IN TEN ACT TO CREATE A NATIONAL STRATEGY TO REDUCE 
                                POVERTY

SEC. 1801. FINDINGS.

    Congress finds the following:
            (1) The persistence of poverty, and especially 
        intergenerational poverty, in America can be seen as a deep, 
        structural problem that implicates our value system and our 
        educational and economic institutions.
            (2) Poverty may be defined as the lack of basic necessities 
        of life such as food, shelter, clothing, health care, 
        education, economic security, and economic opportunity.
            (3) Policy initiatives and many safety net programs 
        addressing poverty have not kept pace with the needs of 
        millions of Americans.
            (4) The lack of an equitable distribution of housing 
        choices across the country leads to isolation and concentrated 
        poverty.
            (5) The number of Americans living in poverty rose by over 
        2.6 million from 2009 to 2010 (U.S. Census Bureau, September 
        2011).
            (6) There were 46.2 million Americans living in poverty in 
        2010, consisting of 15.1 percent of the American people (U.S. 
        Census Bureau, September 2011).
            (7) Poverty has a disproportionate impact on minority 
        communities in America with 27.4 percent of African Americans, 
        26.6 percent of Hispanics, 12.1 percent of Asian Americans, and 
        9.9 percent of Whites living in poverty in the United States in 
        2010 (U.S. Census Bureau, September 2011).
            (8) In 2010 a family of 4 was considered poor under the 
        U.S. Census Bureau's official measure if the family's income 
        was below $22,314.
            (9) The economic consequences of poverty in the United 
        States are estimated to be at least $500 billion per year 
        (Center for American Progress, 2007).
            (10) Children who grow up in poverty experience higher 
        crime rates, decreased productivity, and higher health costs 
        over their lives (Center for American Progress, 2007).
            (11) 3,500,000 seniors lived in poverty in 2010 (U.S. 
        Census Bureau, 2011).
            (12) Young Americans, ages 18-24, experience a higher 
        poverty rate than the national average (U.S. Census Bureau, 
        2011).
            (13) 16,400,000 children lived in poverty in 2010--more 
        than one in every five American children (U.S. Census Bureau, 
        2011).
            (14) Almost 35 percent of African-American children and 
        over 30 percent of Hispanic children lived in poverty in 2009 
        (U.S. Census Bureau, 2011).
            (15) The 46,180,000 of Americans in poverty in 2010 was the 
        largest number yet recorded in the 52 years for which poverty 
        estimates are available (U.S. Census Bureau, 2011).
            (16) The United States overseas territories have high 
        levels of poverty and varying access to Federal anti-poverty 
        programs. Poverty rates in 2009 for people over 18 were 41.4 
        percent in Puerto Rico, 53.7 percent in Guam, 65.1 percent in 
        the United States Virgin Islands, 66.6 percent in the 
        Commonwealth of the Northern Mariana Islands, and 52.6 percent 
        in American Samoa.
            (17) Individuals and families in poverty are more socially 
        vulnerable to natural disasters, extreme weather and impacts of 
        climate change and have greater difficulty preparing for, 
        responding to and recovering from such events (Oxfam America, 
        2009).
            (18) Children who live in families who fall into poverty 
        for even short periods of time are at greater risk of a 
        lifetime of lower earnings, lower educational attainment, and 
        increased reliance on public services and increased rates of 
        incarceration (First Focus, 2008).
            (19) It is estimated that the additional 3 million children 
        who were forced into poverty due to the recession of 2008, 
        resulted in $35 billion in economic losses annually, and will 
        cause at least $1.7 trillion in economic losses to the United 
        States during their lifetimes (First Focus, 2008).
            (20) Reducing poverty, especially child poverty, not only 
        reduces costs for Federal, State, and local social services and 
        benefits programs, but also increases tax revenue at all levels 
        of government (Children's Defense Fund, 2009).
            (21) The House of Representatives, on January 22, 2008, has 
        resolved that it is the sense of Congress that the United 
        States should set a national goal of cutting poverty in half 
        over the next 10 years.

SEC. 1802. DEFINITIONS.

    In this title:
            (1) Federal agency.--The term ``Federal agency'' means any 
        executive department, Government corporation, Government-
        controlled corporation, or other establishment in the executive 
        branch of the Government (including the Executive Office of the 
        President), or any independent regulatory agency.
            (2) Poverty.--The term ``poverty'' means an income level 
        and living standard associated with and based on the official 
        poverty measure as established and updated by the U.S. Census 
        Bureau which establishes a threshold of minimum income 
        necessary to achieve a standard of living free from deprivation 
        of basic needs.
            (3) Extreme poverty.--The term ``extreme poverty'' means 
        having an income level or living standard at a level of extreme 
        deprivation based on living with income below 50 percent of the 
        Federal poverty line as established by the U.S. Census.
            (4) Near poverty.--The term ``near poverty'' means having a 
        level of household income below 200 percent of the Federal 
        poverty line.
            (5) Child poverty.--The term ``child poverty'' means 
        poverty which impacts those persons under 18 years of age.
            (6) Deprivation.--The term ``deprivation'' means lacking 
        some or all basic human needs.
            (7) Decent living standard.--The term ``decent living 
        standard'' means the amount of annual income that would allow 
        an individual to live beyond deprivation at a safe and decent, 
        but modest, standard of living.
            (8) Alternative poverty measures.--The term ``alternative 
        poverty measures'' means measures and indicators, other than 
        the traditional income based measure of poverty, which can 
        provide a more detailed picture of the low-income and poverty 
        stricken populations, such as the number of people who were 
        kept above poverty by Government supports, the number of people 
        who are poor due to medical expenses, child care, and work 
        expenses, the rates of food insecurity, the number of people 
        who are asset poor (with less than three months of income 
        saved), the number of disconnected youth, teen birth rates, 
        participation rates in Federal anti-poverty programs for all 
        eligible populations, and the number of people who are 
        unbanked.
            (9) Regional costs of living.--The term ``regional costs of 
        living'' means a measure of the differing costs of maintaining 
        a given living standard in varying regional, geographic, urban 
        or rural regions.
            (10) Economic insecurity.--The term ``economic insecurity'' 
        means the inability of individuals and households to cope with 
        routine adverse or costly life events and the lack of means to 
        maintain a decent standard of living and to recover from the 
        costly consequences of those events.
            (11) Economic stability.--The term ``economic stability'' 
        means individuals and households have access to the means and 
        support systems necessary to effectively cope with adverse or 
        costly life events and have the ability to effectively recover 
        from the consequences of those events while maintaining their 
        standard of living or maintaining a decent standard of living.
            (12) Digital divide.--The term ``digital divide'' means the 
        gap between individuals, households, businesses and geographic 
        areas at different socio-economic levels with regard to both 
        their access information and communications technologies and 
        including the imbalance both in physical access to technology 
        and the resources, education and skills needed to effectively 
        use computer technology and the Internet for a wide variety of 
        activities.
            (13) Outcomes.--The term ``outcomes'' means change in the 
        economic status, economic instability or economic security of 
        an individual, household or other population which is 
        attributable to a planned intervention, benefit, or service or 
        series of interventions, benefits, and services, regardless of 
        whether such an intervention was intended to change such 
        economic status.
            (14) Disparate impact.--The term ``disparate impact'' 
        refers to the historic and ongoing impacts of the pattern and 
        practice of discrimination in employment, education, housing, 
        banking and nearly every other aspect of American life in the 
        economy, society or culture that have an adverse impact on 
        minorities, women, or other protected groups, regardless of 
        whether such practices were motivated by discriminatory intent.

SEC. 1803. ESTABLISHMENT OF THE FEDERAL INTERAGENCY WORKING GROUP ON 
              REDUCING POVERTY.

    (a) Establishment of Federal Interagency Working Group on Reducing 
Poverty.--There is established within the Department of Health and 
Human Services, a Federal Interagency Working Group on Reducing 
Poverty, which shall be chaired by the Secretary of Health and Human 
Services, and whose members shall be selected by their respective 
agency heads from the senior ranks of their agencies, which shall--
            (1) develop, within 180 days of enactment, a National 
        Strategy to reduce the number of persons living in poverty in 
        America in half within 10 years of the release of the 2012 
        Census report on Income, Poverty and Health Insurance Coverage 
        in the United States: 2011, that includes goals and objectives 
        relating to--
                    (A) reducing in half the number of Americans living 
                in poverty as reported by the 2012 Census report on 
                Income, Poverty and Health Insurance Coverage in the 
                United States: 2011;
                    (B) eliminating child poverty in America;
                    (C) eliminating extreme poverty in America;
                    (D) improving the effectiveness and outcomes of 
                poverty-related programs by improving our understanding 
                of the root causes of poverty, the social, economic, 
                and the cultural contributors to persistent 
                intergenerational poverty;
                    (E) improving the measure of poverty to include 
                more indicators and measures that can meaningfully 
                account for other aspects relating to the measure of 
                poverty, such as regional differences in costs of 
                living, the impact of rising income inequality, the 
                impact of the persistent ``digital divide'', expanding 
                the understanding of poverty by distinguishing a 
                standard that measures a level of freedom from 
                deprivation versus a standard that measures a standard 
                of economic adequacy provided by a living wage and 
                access to a decent living standard, and the impact of 
                poverty on other measures of economic stability and 
                economic outcomes, such as educational attainment, 
                rates of incarceration, lifetime earnings, access to 
                health care, health care outcomes, access to housing, 
                and including other measures as necessary to improve 
                our understanding of why poverty persists in America;
                    (F) eliminating the disparate rates of poverty 
                based on race, ethnicity, gender, age, or sexual 
                orientation and identity, especially among children in 
                those households so impacted;
                    (G) measuring effectiveness of poverty related 
                programs on the basis of long-term outcomes, including 
                the long-term savings and value of preventive practice 
                and policy, and employing fact-based measures of 
                programs to make improvements;
                    (H) improving the accessibility of benefit and 
                social services programs, reducing the complexity and 
                difficulty of enrollment, and improving the rates of 
                enrollment in need based programs for all eligible 
                recipients to maximize the impact of benefits and 
                social services programs on reducing the impacts of 
                poverty and improving economic outcomes;
                    (I) making more uniform eligibility requirements to 
                improve the coordination of service delivery, reduce 
                gaps in eligibility, and improve outcomes of programs 
                addressing poverty in the Federal Government;
                    (J) reducing the negative impacts of asset limits 
                for eligibility which impact Federal, State and local 
                poverty programs on the effectiveness of programs where 
                limited eligibility creates gaps in necessary service 
                and benefit delivery, and restricts access to benefits 
                as individuals and families attempt to transition off 
                of assistance programs and which can prevent needy 
                beneficiaries from improving long-term outcomes and 
                achieving long-term economic independence from need-
                based programs;
                    (K) identifying Federal programs, including those 
                related to disaster relief, hazard mitigation, extreme 
                weather and climate change, and necessary reforms to 
                better target resources towards disproportionately 
                impacted socially vulnerable, low-income and 
                disadvantaged communities may provide greater socio-
                economic benefits;
                    (L) improving the ability of community-based 
                organizations to participate in the development, 
                oversight and implementation of Federal poverty-related 
                programs;
                    (M) improving access to good jobs with adequate 
                wages and benefits by individuals living in poverty, 
                low-income households, and the unemployed;
                    (N) expanding and stabilizing poor and low-income 
                persons connection to work and access to critical job 
                training and/or skills upgrade training that will lead 
                to re-entry in the workforce;
                    (O) developing a comprehensive strategy to connect 
                low-income young people and to re-connect currently 
                disconnected youth to education, work, and their 
                community; and
                    (P) shifting the focus of poverty and means-tested 
                programs across the Federal Government beyond the 
                relief of deprivation and instead setting goals, 
                measures, and outcomes more focused on measuring the 
                success of programs in supporting and improving how 
                capable individuals and families can access educational 
                and economic opportunities to successfully transition 
                away from accessing public assistance and benefits and 
                achieving long-term economic stability which will 
                reduce long-term costs in domestic social needs 
                programs, reduce long-term health care costs due to the 
                improved health of formerly poverty stricken 
                households, increase the number of taxpaying 
                individuals which will increase revenue, and lower the 
                enrollment and costs in need based benefits and 
                services programs, thus improving the economy and 
                reducing long-term deficits for Federal, State, and 
                local governments;
            (2) oversee, coordinate, and integrate all policies and 
        activities of the Federal Government, in coordination and 
        consultation with the Domestic Policy Council and the National 
        Economic Council, across all agencies relating to reducing the 
        number of individuals, families, and children living below the 
        Federal poverty line, in extreme poverty or near poverty and 
        increasing the number of households able to achieve long-term 
        economic stability with assets sufficient to maintain a decent 
        living standard without relying on public-support--
                    (A) economic, commercial, and programmatic policies 
                that can effect or relieve the effects of poverty 
                through job creation, and economic development targeted 
                to low-income, minority, rural, urban and other 
                populations who suffer disparate rates of poverty, 
                among Federal agencies; and
                    (B) services and benefits including emergency 
                programs, discretionary economic programs, and other 
                policies and activities necessary to ensure that the 
                Federal Government is able to mount effective responses 
                to economic downturns and increases in the rates of 
                poverty;
            (3) ensure that all relevant Federal agencies comply with 
        appropriate guidelines, policies, and directives from the 
        Federal Interagency Working Group on Reducing Poverty and the 
        Department of Health and Human Services and other Federal 
        agencies with responsibilities relating to poverty reduction or 
        improving economic stability and independence;
            (4) ensure that Federal agencies, State governments and 
        relevant congressional committees have access to, receive, and 
        appropriately disseminate best practices in the administration 
        of programs, have adequate resources to maximize the public 
        awareness of programs, increase the reach of those programs, 
        especially into historically disenfranchised communities, 
        maximize enrollment for all eligible Americans, share relevant 
        data, and issue relevant guidance in consultation with 
        nongovernment organizations and policy experts in the field and 
        State and local government officials who administer or direct 
        policy for anti-poverty programs in increasing and maximizing 
        the enrollment into and administration of programs and services 
        designed to alleviate poverty;
            (5) enact best practices for improved data collection, 
        relevant to--
                    (A) reducing poverty;
                    (B) reducing the racial, ethnic, age, gender, and 
                sexual orientation or sexual identity based disparities 
                in the rates of poverty;
                    (C) adequately measuring the effectiveness, 
                efficiency and impact of programs on the outcomes for 
                individuals, families and communities who receive 
                benefits and services;
                    (D) streamlining enrollment and eligibility for 
                programs;
                    (E) improving long-term outcomes for individuals 
                who are enrolled in service and benefit programs;
                    (F) reducing reliance on public programs;
                    (G) improving connections to work;
                    (H) improving economic stability;
                    (I) improving savings and investment, access to 
                capital, increasing rates of entrepreneurship;
                    (J) improving our understanding of the impact of 
                extreme weather and natural disasters on economically 
                vulnerable communities and improving those communities' 
                resilience to and recovery from extreme weather and 
                natural disasters;
                    (K) improving access to living wage employment; and
                    (L) improving access to employment-based benefits; 
                and
            (6) study the feasibility of and test different 
        interagency, State and local, public/private models of 
        cooperative service and benefit delivery by creating necessary 
        exemptions, waivers and funding sources to allow improved 
        cooperation and innovation in the development of programs, 
        practices, policies and procedures that advance the goal of 
        reducing poverty and increasing economic opportunity.
    (b) Director of National Poverty Policy.--There shall be a Staff 
Director of National Poverty Policy, who shall be the head of the 
Federal Interagency Working Group on Reducing Poverty.

SEC. 1804. APPOINTMENT AND RESPONSIBILITIES OF THE DIRECTOR.

    (a) Appointment.--
            (1) In general.--The Staff Director shall be appointed by 
        the Secretary of Housing and Urban Development.
            (2) Qualifications.--The Secretary shall appoint the Staff 
        Director from among individuals who have demonstrated ability 
        and knowledge in social policy, improving outcome based 
        management, issues of equity and equal opportunity and access 
        to services and economic opportunity.
    (b) Responsibilities.--The Staff Director shall--
            (1) advise the Secretary and all relevant cabinet 
        secretaries, and agency officials regarding the establishment 
        of policies, goals, objectives, and priorities for reducing 
        poverty in America in half in ten years, ending child poverty, 
        ending extreme poverty and eliminating racial, ethnic, gender, 
        and sexual identity and orientation based disparities in the 
        rates of poverty;
            (2) advise the Secretary, when directed by the Secretary, 
        advise relevant cabinet secretaries, heads of independent 
        Federal agencies and other entities within the Executive Office 
        of the President regarding mechanisms to improve the 
        effectiveness, coordination, impact, and outcomes of social 
        services, benefits, and other poverty reduction and economic 
        opportunity programs, in collaboration with experts in the 
        field, nongovernmental organizations, and other governments;
            (3) work with Federal agencies to oversee, coordinate, and 
        integrate the implementation of the National Plan or Strategy, 
        including consultation with independent nongovernmental policy 
        experts and service provider groups engaged in serving low-
        income persons, children and households, State and local 
        government officials who administer or direct policy for anti-
        poverty programs, and with as many groups that directly 
        represent low-income people, such as public housing tenants' 
        associations, or other similar groups; and
            (4) resolve any disputes that arise between Federal 
        agencies relating to the National Plan to reduce poverty in 
        half in ten years or other matters within the responsibility of 
        the Office.

SEC. 1805. CONSULTATION.

    (a) In General.--The Director may consult and obtain 
recommendations from, as needed, such Presidential and other advisory 
entities such as consultation with independent nongovernmental policy 
experts and service provider groups engaged in serving low-income 
persons, children, and households; State and local government officials 
who administer or direct policy for anti-poverty programs, and groups 
made up of low-income people, such as public housing tenants' 
associations, or other similar groups as the Director determines will 
assist in carrying out the mission of the Office, including, but not 
limited to--
            (1) the Administration for Children and Families (ACF);
            (2) the Administration on Aging (AoA);
            (3) the Department of Agriculture (USDA);
            (4) the Bankruptcy Courts;
            (5) the Bureau of Consumer Financial Protection;
            (6) the Bureau of Economic Analysis (BEA);
            (7) the Bureau of Indian Affairs (BIA);
            (8) the Bureau of the Census;
            (9) the Center for Nutrition Policy and Promotion;
            (10) the Centers for Medicare & Medicaid Services (formerly 
        the Health Care Financing Administration);
            (11) the Commission on Civil Rights;
            (12) the Office of Community Planning and Development;
            (13) the Consumer Financial Protection Bureau;
            (14) the Coordinating Council on Juvenile Justice and 
        Delinquency Prevention;
            (15) the Corporation for National and Community Service;
            (16) the Council of Economic Advisers;
            (17) the Department of Agriculture (USDA);
            (18) the Department of Commerce (DOC);
            (19) the Department of Defense (DOD);
            (20) the Department of Education (ED);
            (21) the Department of Health and Human Services (HHS);
            (22) the Department of Housing and Urban Development (HUD);
            (23) the Department of Justice (DOJ);
            (24) the Department of Labor (DOL);
            (25) the Department of the Treasury;
            (26) the Department of Transportation (DOT);
            (27) the Department of Veterans Affairs (VA);
            (28) the Disability Employment Policy Office;
            (29) the Domestic Policy Council;
            (30) the Drug Enforcement Administration (DEA);
            (31) the Economic Development Administration;
            (32) the Economic Research Service;
            (33) the English Language Acquisition Office;
            (34) the Equal Employment Opportunity Commission (EEOC);
            (35) the Fair Housing and Equal Opportunity;
            (36) the Federal Bureau of Prisons;
            (37) the Federal Housing Finance Board;
            (38) the Federal Labor Relations Authority;
            (39) the Federal Trade Commission (FTC);
            (40) the Food and Nutrition Service;
            (41) the Indian Health Service;
            (42) the Interagency Council on Homelessness;
            (43) the Internal Revenue Service (IRS);
            (44) the Legal Services Corporation;
            (45) the National AIDS Policy Office;
            (46) the National Credit Union Administration;
            (47) the National Economic Council;
            (48) the National Institutes of Health (NIH);
            (49) the National Labor Relations Board;
            (50) the Occupational Safety & Health Administration 
        (OSHA);
            (51) the Office of Management and Budget (OMB);
            (52) the Office of Refugee Resettlement;
            (53) the Office of Policy Development and Research (Housing 
        and Urban Development Department);
            (54) the Small Business Administration (SBA);
            (55) the Social Security Administration (SSA);
            (56) the Substance Abuse and Mental Health Services 
        Administration;
            (57) the Veterans' Employment and Training Service; and
            (58) the Women's Bureau (Labor Department).
    (b) National Strategy.--In developing and updating the National 
Strategy the Executive Director shall consult with the Domestic Policy 
Council, the National Economic Council, and, as appropriate, hold 
regional public hearings around the country to collect information and 
feedback from the public on their efforts and experience for the 
development and updating of the National Strategy and make this 
information available to the public.

SEC. 1806. REPORTS TO CONGRESS AND THE PUBLIC.

    (a) In General.--The Chair of the Federal Interagency Working Group 
on Reducing Poverty shall submit an annual report to the appropriate 
congressional committees describing the activities, ongoing projects, 
and plans of the Federal Government designed to meet the goals and 
objectives of the National Strategy on Poverty. The report shall 
include an accounting of the savings to the Government from any 
increased efficiencies in the delivery of services, any savings from 
reducing the numbers of Americans living in poverty and reductions in 
the demand for need-based services and benefits for which persons 
living in and near poverty are eligible, as well as an accounting of 
any increase in revenue collections due to the numbers of persons who 
become gainfully employed and pay taxes into the Treasury instead of 
drawing benefits and services from it.
    (b) National Academy of Sciences Workshop.--Within 90 days after 
funds are made available to carry out this title, the Secretary of 
Health and Human Services shall contract with the National Academy of 
Sciences (hereinafter in this subsection referred to as the ``NAS'') to 
initiate a workshop series to provide necessary background information 
to enable the Working Group on Reducing Poverty to develop and finalize 
its plan.
            (1) The NAS shall convene a steering committee to organize, 
        plan, and conduct a public workshop on what is known about the 
        economic and social costs of poverty, including, but not 
        limited to the following:
                    (A) Macroeconomic costs (effects on productivity 
                and economic output).
                    (B) Health costs (effects on health expenditures 
                and health status).
                    (C) Crime and other social costs.
                    (D) Direct Federal budget effects (e.g., outlays 
                for income support and other poverty reduction 
                programs).
                    (E) Natural disaster related risks and costs.
                    (F) The workshop shall also consider poverty 
                metrics (e.g., income poverty, food insecurity, and 
                other measures of deprivation), and their role in 
                assessing the effects of poverty and the performance of 
                anti-poverty programs.
        The NAS shall commission experts to prepare papers that 
        summarize and critique the relevant literature estimating 
        monetary and non-monetary economic and social impacts of 
        poverty. A workshop summary shall be produced that, along with 
        the papers, shall be available electronically on the NAS 
        website. This workshop shall be convened within 6 months of 
        receipt of a contract, the papers posted immediately, and the 
        summary released by the end of month.
            (2) The NAS steering committee shall organize, plan, and 
        conduct a second public workshop on what is known about the 
        economic and social costs and benefits of a variety of programs 
        and strategies to reduce and prevent poverty. It shall take 
        account of such issues as the following:
                    (A) Short-term versus long-term effects, including 
                budget implications.
                    (B) Effects for different population groups, such 
                as children, the elderly, immigrants, long-term single-
                parent families, displaced older workers, young people 
                with large loans, people in areas of concentrated 
                poverty and other social ills (e.g., Indian 
                reservations, some inner city areas, some rural areas).
                    (C) Effects by depth of poverty and near-poverty 
                (e.g., income to poverty ratios of less than 50 
                percent, less than 100 percent, less than 200 percent).
        This second workshop shall be convened within 9 months of 
        receipt of a contract, the papers posted immediately, and a 
        summary released by the end of month 12.
    (c) Report.--The relevant sections of the report shall be posted on 
each agency's website on the plans and impacts specific to their 
agency.
    (d) Public Report.--A version of each report submitted under this 
section shall be made available to the public.
    (e) Legislative Language.--The Working Group on Reducing Poverty 
shall submit, as necessary, legislative language, including specific 
legislative recommendations to the Congress of the United States 
towards achieving the national goals.
                                 <all>