Title: Welfare Reform and Upward Mobility Act
Policy area: Social Welfare

Summary:
Welfare Reform and Upward Mobility Act
This bill requires the President to include in the annual budget proposal the total level of means-tested welfare spending by the federal, state, and local governments for the most recent fiscal year for which such data is available, and estimated levels for the current and 10 ensuing fiscal years.
For each of FY2019-FY2029 each state that receives means-tested welfare spending by the federal government shall report annually to the Congressional Budget Office on the total amount of such spending by the state for the fiscal year.
The Congressional Budget Act of 1974 is amended to define means-tested welfare spending as spending for any federal program designed specifically to give assistance or benefits exclusively to low-income Americans.
The refundable portion of certain tax credits shall also be means-tested welfare spending, as well as the refundable portion of the premium and out-of-pocket health care subsidies to be paid under the Patient Protection and Affordable Health Care Act.
The bill revises work eligibility requirements under the Supplemental Nutrition Assistance Program.
Part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act is amended to create the work preparation program for TANF families.
The bill eliminates separate participation rate requirements for two-parent families.
No federal funds shall be made available to carry out any means-tested housing program, but states may receive grants to fund their own housing programs.
The bill prohibits funding for abortions and for health benefits that cover abortion, including certain tax credits, except where the pregnancy results from rape or incest or in certain other health cases.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1290 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1290

  To help individuals receiving assistance under means-tested welfare 
   programs obtain self-sufficiency, to provide information on total 
   spending on means-tested welfare programs, to provide an overall 
    spending limit on means-tested welfare programs, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 5, 2017

Mr. Lee (for himself and Mr. Cruz) introduced the following bill; which 
        was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To help individuals receiving assistance under means-tested welfare 
   programs obtain self-sufficiency, to provide information on total 
   spending on means-tested welfare programs, to provide an overall 
    spending limit on means-tested welfare programs, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare Reform and Upward Mobility 
Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
  TITLE I--REPORTING OF MEANS-TESTED WELFARE SPENDING IN PRESIDENT'S 
                           BUDGET SUBMISSION

Sec. 101. Additional information in President's budget submission.
Sec. 102. Additional information from State recipients of means-tested 
                            welfare spending.
Sec. 103. Definition of means-tested welfare spending.
  TITLE II--MODIFICATIONS TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

Sec. 201. Work requirements for able-bodied adults without dependents.
Sec. 202. Work activation program for adults with dependent children.
           TITLE III--PREPARING MORE TANF RECIPIENTS FOR WORK

Sec. 301. Work preparation program.
Sec. 302. Changes to mandatory work requirements.
        TITLE IV--MODIFICATION TO MEANS-TESTED HOUSING PROGRAMS

Sec. 401. Definitions.
Sec. 402. Repeal of means-tested housing programs.
Sec. 403. Authorization of appropriations.
Sec. 404. Grants to States.
Sec. 405. State recipient reports.
Sec. 406. Research.
Sec. 407. Rule of construction.
              TITLE V--PROHIBITION ON FUNDING OF ABORTION

Sec. 501. Prohibition on funding for abortions.
Sec. 502. Prohibition on funding for health benefits plans that cover 
                            abortion.
Sec. 503. Prohibition on tax benefits relating to abortion.
Sec. 504. Construction relating to separate coverage.
Sec. 505. Construction relating to the use of non-Federal funds for 
                            health coverage.
Sec. 506. Treatment of abortions related to rape, incest, or preserving 
                            the life of the mother.

  TITLE I--REPORTING OF MEANS-TESTED WELFARE SPENDING IN PRESIDENT'S 
                           BUDGET SUBMISSION

SEC. 101. ADDITIONAL INFORMATION IN PRESIDENT'S BUDGET SUBMISSION.

    Section 1105(a) of title 31, United States Code, is amended by 
adding at the end the following:
            ``(40) the total level of means-tested welfare spending (as 
        defined in section 3 of the Congressional Budget Act of 1974 (2 
        U.S.C. 622)) by the Federal Government and the total level of 
        means-tested welfare spending by all State and local 
        governments and the Federal Government for the most recent 
        fiscal year for which such data is available and estimated 
        levels for the fiscal year during which the budget submission 
        of the President is made, for the fiscal year beginning on 
        October 1 of the calendar year during which the budget 
        submission is made, and for each of the 9 ensuing fiscal 
        years.''.

SEC. 102. ADDITIONAL INFORMATION FROM STATE RECIPIENTS OF MEANS-TESTED 
              WELFARE SPENDING.

    For each of fiscal years 2019 through 2029, each State that 
receives means-tested welfare spending (as defined in section 3 of the 
Congressional Budget Act of 1974 (2 U.S.C. 622), as amended by this 
Act) by the Federal Government shall submit to the Director of the 
Congressional Budget Office an annual report regarding the total amount 
of means-tested welfare spending by the State for the fiscal year.

SEC. 103. DEFINITION OF MEANS-TESTED WELFARE SPENDING.

    Section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622) is 
amended by adding at the end the following:
            ``(12)(A) The term `means-tested welfare spending'--
                    ``(i) means spending for any Federal program that 
                is designed to specifically provide assistance or 
                benefits exclusively to low-income Americans;
                    ``(ii) does not include such a program if the 
                program--
                            ``(I) is based on earned eligibility;
                            ``(II) is not need-based;
                            ``(III) is a program designed exclusively 
                        or primarily for veterans of military service; 
                        or
                            ``(IV) offers universal or near universal 
                        eligibility to the working population and their 
                        dependents; and
                    ``(iii) includes community and economic development 
                programs targeted to low-income communities or 
                populations.
            ``(B) For purposes of subparagraph (A), the spending on the 
        following Federal programs shall be means-tested welfare 
        spending:
                    ``(i) Cash and general programs.--
                            ``(I) Supplemental Security Income.
                            ``(II) Earned Income Tax Credit (Refundable 
                        Portion).
                            ``(III) Refundable Child Credit.
                            ``(IV) Temporary Assistance to Needy 
                        Families.
                            ``(V) Title IV-E Foster Care.
                            ``(VI) Title IV-E Adoption Assistance.
                            ``(VII) General Assistance to Indians.
                            ``(VIII) Assets for Independence.
                    ``(ii) Medical.--
                            ``(I) Medicaid.
                            ``(II) State Children's Health Insurance 
                        Program.
                            ``(III) Indian Health Services.
                            ``(IV) Consolidated Health Centers/
                        Community Health Centers.
                            ``(V) Maternal and Child Health.
                            ``(VI) Healthy Start.
                            ``(VII) Refundable Premiums and Out of 
                        Pocket Subsidies under the Patient Protection 
                        and Affordable Health Care Act (PPACA).
                    ``(iii) Food.--
                            ``(I) Food Stamps Program.
                            ``(II) School Lunch Program.
                            ``(III) Women, Infant and Children (WIC) 
                        Food Program.
                            ``(IV) School Breakfast.
                            ``(V) Child Care Food Program.
                            ``(VI) Nutrition Program for the Elderly, 
                        Nutrition Service Incentives.
                            ``(VII) Summer Food Service Program.
                            ``(VIII) Commodity Supplemental Food 
                        Program.
                            ``(IX) Temporary Emergency Food Program.
                            ``(X) Needy Families.
                            ``(XI) Farmer's Market Nutrition Program.
                            ``(XII) Special Milk Program.
                    ``(iv) Housing.--
                            ``(I) Section 8 Housing (HUD).
                            ``(II) Public Housing (HUD).
                            ``(III) State Housing Expenditures.
                            ``(IV) Home Investment Partnership Program 
                        (HUD).
                            ``(V) Homeless Assistance Grants (HUD).
                            ``(VI) Rural Housing Insurance Fund 
                        (Agriculture).
                            ``(VII) Rural Housing Service 
                        (Agriculture).
                            ``(VIII) Housing for the Elderly (HUD).
                            ``(IX) Native American Housing Block Grants 
                        (HUD).
                            ``(X) Other Assisted Housing Programs 
                        (HUD).
                            ``(XI) Housing for Persons with 
                        Disabilities (HUD).
                    ``(v) Energy and utilities.--
                            ``(I) Low-Income Home Energy Assistance.
                            ``(II) Universal Service Fund--Subsidized 
                        Phone Service for Low-Income Persons.
                            ``(III) Weatherization.
                    ``(vi) Education.--
                            ``(I) Federal Pell Grants.
                            ``(II) Grants for improving basic programs 
                        operated by local educational agencies.
                            ``(III) Federal TRIO Programs.
                            ``(IV) Federal Supplemental Educational 
                        Opportunity Grants.
                            ``(V) Programs for the education of 
                        migratory children.
                            ``(VI) Gaining Early Awareness and 
                        Readiness for Undergraduate Programs (GEAR UP).
                            ``(VII) Education for Homeless Children and 
                        Youth.
                            ``(VIII) Leveraging Educational Assistance 
                        Partnership (LEAP) Program.
                            ``(IX) Even Start.
                    ``(vii) Training.--
                            ``(I) Job Corps.
                            ``(II) Youth Opportunity Grants.
                            ``(III) Adult Employment and Training 
                        Activities.
                            ``(IV) Senior Community Service Employment.
                            ``(V) Employment and Training Program, of 
                        the Food Stamp Program or the Supplemental 
                        Nutrition Assistance Program.
                            ``(VI) Workforce Investment Activities for 
                        Migrant and Seasonal Farmworkers.
                            ``(VII) YouthBuild.
                            ``(VIII) Workforce Investment Activities 
                        for Indians or Native Hawaiians.
                    ``(viii) Services.--
                            ``(I) Social Services Block Grant.
                            ``(II) Community Services Block Grant.
                            ``(III) Services for Refugees, Asylees, and 
                        Other Special Populations.
                            ``(IV) State and Community Programs on 
                        Aging.
                            ``(V) Legal Assistance Grants and 
                        Contracts.
                            ``(VI) Family Planning Services.
                            ``(VII) Emergency Food and Shelter.
                            ``(VIII) Healthy Marriage Promotion and 
                        Responsible Fatherhood Grants.
                            ``(IX) AmeriCorps VISTA.
                    ``(ix) Child care and child development.--
                            ``(I) Head Start (including Early Head 
                        Start).
                            ``(II) Child Care and Development Block 
                        Grant (not under the Temporary Assistance to 
                        Needy Families Program).
                            ``(III) Child Care and Development Block 
                        Grant (under the Temporary Assistance to Needy 
                        Families Program).
                    ``(x) Community development.--
                            ``(I) Community Development Block Grant.
                            ``(II) Economic Development Administration.
                            ``(III) Appalachian Regional Development.
                            ``(IV) Empowerment Zones, Enterprise 
                        Communities, Renewal Communities.
                            ``(V) Urban Development Block Grant.
            ``(C) For purposes of subparagraph (A), spending on the 
        following Federal programs shall not be means-tested welfare 
        spending:
                    ``(i) The Social Security Disability Insurance 
                program.
                    ``(ii) Medicare.
                    ``(iii) Retirement insurance benefits and survivor 
                benefits under the Social Security program.
                    ``(iv) Any program designed exclusively or 
                primarily for veterans of military service.
                    ``(v) Unemployment insurance benefits.
                    ``(vi) Programs designed specifically to provide 
                benefits to workers to compensate for job-related 
                injuries or illnesses.
            ``(D) The term `means-tested welfare spending' includes the 
        full cost of benefits and services provided under a program and 
        the administrative costs for operating the program, subject to 
        the limitations under subparagraph (E).
            ``(E)(i)(I) For purposes of this paragraph, only the 
        refundable portion of the following tax credits shall be means-
        tested welfare spending:
                    ``(aa) The earned income tax credit.
                    ``(bb) The child tax credit.
                    ``(cc) The making work pay tax credit.
            ``(II) For purposes of this paragraph, only the refundable 
        portion of the premium and out of pocket health care subsidies 
        to be paid under the Patient Protection and Affordable Health 
        Care Act shall be means-tested welfare spending.
            ``(III) For purposes of this clause, the term `refundable 
        portion' means the portion of the credit which is paid to an 
        individual in excess of the amount of Federal income tax owed 
        by the individual.
            ``(ii) For purposes of this paragraph, only the costs of 
        the free and reduced price segments of the school lunch and 
        school breakfast programs shall be means-tested welfare 
        spending.
            ``(F) For purposes of this paragraph expenditures by State 
        and local governments of funds that are--
                    ``(i) obtained by the State and local government 
                from taxes, fees, or other sources of revenue 
                established by the State or local government; and
                    ``(ii) are not received as any form of grant from 
                the Federal Government,
        shall not be Federal means-tested welfare spending, without 
        regard to whether such State and local expenditures take the 
        form of contributions to a Federal program described in 
        subparagraph (A) or listed in subparagraph (B).''.

  TITLE II--MODIFICATIONS TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

SEC. 201. WORK REQUIREMENTS FOR ABLE-BODIED ADULTS WITHOUT DEPENDENTS.

    (a) Declaration of Policy.--Section 2 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011) is amended by adding at the end the following: 
``Congress further finds that it should also be the purpose of the 
supplemental nutrition assistance program to increase employment, to 
encourage healthy marriage, and to promote prosperous self-sufficiency, 
which means the ability of households to maintain an income above the 
poverty level without services and benefits from the Federal 
Government.''.
    (b) Definitions.--
            (1) Food.--Section 3(k) of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2012(k)) is amended by inserting before the 
        period at the end the following: ``, except that a food, food 
        product, meal, or other item described in this subsection shall 
        be considered a food under this Act only if it is an essential 
        (as determined by the Secretary)''.
            (2) Supervised job search.--Section 3 of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2012) is amended--
                    (A) by redesignating subsections (t) through (v) as 
                subsections (u) through (w), respectively; and
                    (B) by inserting after subsection (s) the 
                following:
    ``(t) Supervised Job Search.--The term `supervised job search' 
means a job search program that has the following characteristics:
            ``(1) The job search occurs at an official location where 
        the presence and activity of the recipient can be directly 
        observed, supervised, and monitored.
            ``(2) The entry, time onsite, and exit of the recipient 
        from the official job search location are recorded in a manner 
        that prevents fraud.
            ``(3) The recipient is expected to remain and undertake job 
        search activities at the job search center.
            ``(4) The quantity of time the recipient is observed and 
        monitored engaging in job search at the official location is 
        recorded for purposes of compliance with the work and work 
        activation requirements of sections 6(o) and 30.''.
    (c) Work Requirement for Able-Bodied Adults Without Dependents.--
Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) 
is amended--
            (1) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``not less than 3 months (consecutive or 
                otherwise)'' and inserting ``more than 1 month'';
                    (B) in subparagraph (C), by striking ``or'' at the 
                end;
                    (C) in subparagraph (D), by striking the period at 
                the end and inserting ``; or''; and
                    (D) by adding at the end the following:
                    ``(E) participate in supervised job search for at 
                least 8 hours per week.'';
            (2) in paragraph (4), by adding at the end the following:
                    ``(C) Termination.--Subparagraph (A) shall not 
                apply with respect to any fiscal year that begins after 
                the effective date of the Welfare Reform and Upward 
                Mobility Act.'';
            (3) in paragraph (6)--
                    (A) in the paragraph heading, by striking ``15-
                percent'' and inserting ``5-percent'';
                    (B) in subparagraph (A)(ii)(IV), by striking ``3 
                months'' and inserting ``1 month''; and
                    (C) in subparagraph (D), by striking ``15 percent'' 
                and inserting ``5 percent''; and
            (4) by adding at the end the following:
            ``(8) Promoting work.--As a condition of receiving 
        supplemental nutrition assistance program funds under this Act, 
        a State agency shall provide each individual subject to the 
        work requirement of this subsection with the opportunity to 
        participate in an activity selected by the State from among the 
        options described in subparagraphs (B), (C), and (E) of 
        paragraph (2).
            ``(9) Penalties for inadequate state performance.--If a 
        State agency fails to fully comply with this section, including 
        the requirement to terminate the benefits of individuals who 
        fail to fulfill the work requirements described in paragraph 
        (2) during a fiscal quarter, the funding allotment of the State 
        for the supplemental nutrition assistance program shall be 
        reduced by 10 percent for the quarter that begins 180 days 
        after the first day of the quarter in which the noncompliance 
        occurred.''.

SEC. 202. WORK ACTIVATION PROGRAM FOR ADULTS WITH DEPENDENT CHILDREN.

    The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is 
amended by adding at the end the following:

``SEC. 30. WORK ACTIVATION PROGRAM FOR ADULTS WITH DEPENDENT CHILDREN.

    ``(a) Definitions.--In this section:
            ``(1) Eligible participant.--The term `eligible 
        participant' means an individual who, during a particular 
        month, is--
                    ``(A) a parent in a household with dependent 
                children;
                    ``(B) at least 19, and not more than 55, years of 
                age;
                    ``(C) not disabled;
                    ``(D) a member of a household in which 1 or more 
                parents or children receive supplemental nutrition 
                assistance program benefits in the month;
                    ``(E) a member of a household that received 
                supplemental nutrition assistance program benefits for 
                more than 3 months in the year; and
                    ``(F) employed less than 100 hours in the month.
            ``(2) Married couple household.--The term `married couple 
        household' means a household that includes 2 eligible 
        participants who are married to each other and have dependent 
        children.
            ``(3) Successful engagement in work activation.--The term 
        `successful engagement in work activation' means--
                    ``(A) in the case of an individual who is eligible 
                and required to participate in interim work activation, 
                performance during the month that fulfills the activity 
                and hour requirements of subsection (c);
                    ``(B) in the case of an individual who is required 
                to participate in full work activation, performance 
                during the month that fulfills the activity and hour 
                requirements of subsection (d); and
                    ``(C) in the case of an individual who meets the 
                eligibility criteria described in subsection (e)(1), 
                performance that fulfills the activity and hour 
                requirements of that subsection.
            ``(4) Work and work preparation activities.--The term `work 
        and work preparation activities' means--
                    ``(A) unsubsidized employment;
                    ``(B) subsidized private sector employment;
                    ``(C) subsidized public sector employment;
                    ``(D) work experience (including work associated 
                with the refurbishing of publicly assisted housing) if 
                sufficient private sector employment is not available;
                    ``(E) on-the-job training;
                    ``(F) job readiness assistance;
                    ``(G) a community service program;
                    ``(H) vocational educational training (not to 
                exceed 1 year with respect to any individual);
                    ``(I) job skills training directly related to 
                employment;
                    ``(J) education directly related to employment, in 
                the case of a recipient who has not received a high 
                school diploma or a certificate of high school 
                equivalency;
                    ``(K) satisfactory attendance at secondary school 
                or in a course of study leading to a certificate of 
                general equivalence, in the case of a recipient who has 
                not completed secondary school or received such a 
                certificate;
                    ``(L) the provision of child care services to an 
                individual who is participating in a community service 
                program;
                    ``(M) workfare under section 20; and
                    ``(N) supervised job search.
    ``(b) Work Activation Program.--
            ``(1) In general.--As a condition of receiving supplemental 
        nutrition assistance program funds under this Act, a State 
        agency shall be required to operate a work activation program 
        for eligible participants.
            ``(2) Special rules for married couple households.--
                    ``(A) In general.--In the case of eligible 
                participants who are spouses in a married couple 
                household--
                            ``(i) the work activation requirement of 
                        this section shall apply only if the sum of the 
                        combined current employment of both spouses is 
                        less than 100 hours per month; and
                            ``(ii) both spouses shall be considered to 
                        have achieved successful engagement in the work 
                        activation program if either spouse fulfills 
                        the work activation requirements described in 
                        subsection (c), (d), or (e)(1).
                    ``(B) Total required hours.--The total combined 
                number of hours of required work and work preparation 
                activities for both spouses in a married couple 
                household shall not be greater than the total number of 
                hours required for a single head of household.
                    ``(C) Requirement.--In carrying out this section, a 
                State agency shall ensure that, for any month--
                            ``(i) the proportion that--
                                    ``(I) the number of married couple 
                                households that are required to 
                                participate in work activation under 
                                this section in a month; bears to
                                    ``(II) the number of all households 
                                that are required to participate in 
                                work activation under this section in 
                                the same month; is not greater than--
                            ``(ii) the proportion that--
                                    ``(I) the number of all married 
                                couple households with eligible 
                                participants in the month; bears to
                                    ``(II) the number of all households 
                                with eligible participants in the same 
                                month.
    ``(c) Short-Term Interim Work Activation.--
            ``(1) In general.--A State agency may require eligible 
        participants who meet the criteria in paragraph (2) to engage 
        in--
                    ``(A) interim work activation as described in this 
                subsection; or
                    ``(B) full work activation as described in 
                subsection (d).
            ``(2) Eligibility.--A State agency may require an eligible 
        participant to participate in interim work activation instead 
        of full work activation if the eligible participant has not 
        engaged in work activation under this section in the preceding 
        3 years.
            ``(3) Required job search.--A participant in interim work 
        activation shall be required--
                    ``(A) to participate in supervised job search for 
                at least 6 hours per week; and
                    ``(B) to engage in such additional activities as 
                the State agency may require.
            ``(4) Time limit on interim work activation.--
                    ``(A) In general.--An eligible participant shall 
                not participate in interim work activation for more 
                than 3 months.
                    ``(B) Additional time.--After an eligible 
                participant has participated in interim work activation 
                for 3 months, the State agency shall require the 
                eligible participant--
                            ``(i) to maintain at least 100 hours of 
                        employment per month; or
                            ``(ii) to participate in full work 
                        activation.
    ``(d) Full Work Activation.--
            ``(1) In general.--As a condition of receiving supplemental 
        nutrition assistance program funds under this Act, a State 
        agency shall require all or part of the eligible participants 
        in the State to engage in full work activation under this 
        section.
            ``(2) Requirements.--An eligible participant who is 
        required to participate in full work activation in a month 
        shall be required to engage in 1 or more work and work 
        preparation activities for an average of 100 hours per month.
            ``(3) Limitation.--Of the total number of required hours 
        described in paragraph (2), not fewer than 20 hours per week 
        shall be attributable to an activity described in subparagraph 
        (A), (B), (C), (D), (E), (F), (G), (H), (L), (M), or (N) of 
        subsection (a)(4).
            ``(4) Participation in community service or workfare.--At 
        least 10 percent of the eligible participants that a State 
        requires to participate in full work activation under this 
        section shall be required to participate in activities 
        described in subparagraph (D), (G), or (M) of subsection 
        (a)(4).
            ``(5) Work activation not employment.--Other than 
        unsubsidized employment described in subsection (a)(4)(A), 
        participation in work and work preparation activities under 
        this section shall not be--
                    ``(A) considered to be employment; or
                    ``(B) subject to any law pertaining to wages, 
                compensation, hours, or conditions of employment under 
                any law administered by the Secretary of Labor.
            ``(6) Additional required activity.--Except as provided in 
        subsection (g), nothing in this section prevents a State from 
        requiring more than 100 hours per month of participation in 
        work and work preparation activities.
    ``(e) Limitations and Special Rules.--
            ``(1) Single teen head of household or married teen who 
        maintains satisfactory school attendance.--For purposes of 
        determining monthly participation rates under this section, an 
        eligible participant who is married or a head of household and 
        who has not attained 20 years of age shall be considered to 
        have completed successful engagement in work activation for a 
        month if the eligible participant--
                    ``(A) maintains satisfactory attendance at 
                secondary school or the equivalent during the month; or
                    ``(B) participates in education directly related to 
                employment for an average of at least 20 hours per week 
                during the month.
            ``(2) Limitation on number of persons who may be treated as 
        engaged in work activation by reason of participation in 
        educational activities.--For purposes of determining monthly 
        participation rates under this section, not more than 30 
        percent of the number of individuals in a State who are treated 
        as having completed successful engagement in work activation 
        for a month may be individuals who are determined to be engaged 
        in work activation for the month by reason of participation in 
        vocational educational training.
    ``(f) State Option for Participation Requirement Exemptions.--
            ``(1) In general.--For any fiscal year, a State agency, at 
        the option of the State agency, may--
                    ``(A) exempt a household that includes a child who 
                has not attained 12 months of age from engaging in work 
                activation; and
                    ``(B) disregard that household in determining the 
                monthly participation rates under this section until 
                the child has attained 12 months of age.
            ``(2) Exclusion.--For purposes of determining monthly 
        participation rates under this section, a household that 
        includes a child who has not attained 6 years of age shall be 
        considered to be successfully engaged in work activation for a 
        month if a member of the household receiving supplemental 
        nutrition assistance program benefits is engaged in work 
        activation for an average of at least 20 hours per week during 
        the month.
    ``(g) Penalties Against Individuals.--
            ``(1) In general.--Except as provided in paragraph (3), if 
        an eligible participant in a household receiving assistance 
        under the State program funded under this section fails to 
        complete successful engagement in work activation in accordance 
        with this section, the State agency shall--
                    ``(A) in accordance with paragraph (2), reduce the 
                amount of assistance otherwise payable to the entire 
                household pro rata (or more, at the option of the State 
                agency) with respect to the month immediately after any 
                month in which the eligible participant fails to 
                perform; or
                    ``(B) terminate the assistance entirely.
            ``(2) Pro rata reduction.--For purposes of paragraph 
        (1)(A), the amount of the pro rata reduction shall equal the 
        product obtained by multiplying--
                    ``(A) the normal monthly amount of assistance to 
                the entire household that would have been received if 
                not for the reduction under paragraph (1)(A); by
                    ``(B) the proportion that--
                            ``(i) the hours of required work and work 
                        preparation activities performed by the 
                        eligible participant during the month; bears to
                            ``(ii) the number or hours of work and work 
                        preparation activities the State agency 
                        required the eligible participant to perform in 
                        accordance with this section.
            ``(3) Exception.--A State may not reduce or terminate 
        assistance under the State program funded under this section or 
        any other State program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B) of the Social 
        Security Act (42 U.S.C. 609(a)(7)(B))) based on a refusal of an 
        eligible participant to engage in work and work preparation 
        activities required under this section if--
                    ``(A) the eligible participant is a single 
                custodial parent caring for a child who has not 
                attained 6 years of age; and
                    ``(B) the eligible participant proves that the 
                eligible participant has a demonstrated inability (as 
                determined by the State agency) to obtain needed child 
                care, due to--
                            ``(i) unavailability of appropriate child 
                        care within a reasonable distance from the home 
                        or work site of the eligible participant; or
                            ``(ii) unavailability of all affordable 
                        child care arrangements, including formal child 
                        care and all informal child care by a relative 
                        or under other arrangements.
    ``(h) Limitation on Hours of Required Participation in Community 
Service or Workfare.--
            ``(1) In general.--The maximum number of hours during a 
        month that an eligible participant shall be required under this 
        section to work in a community service program or a workfare 
        program under section 20 shall not exceed the quotient obtained 
        by dividing--
                    ``(A) the total dollar cost of all means-tested 
                benefits received by the household for that month, as 
                determined under paragraph (2); by
                    ``(B) the Federal minimum wage.
            ``(2) Total dollar cost of all means-tested benefits 
        defined.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the total dollar cost of all means-
                tested benefits shall equal the sum of the dollar cost 
                of all benefits received by the household from--
                            ``(i) the supplemental nutrition assistance 
                        program;
                            ``(ii) the State program funded under part 
                        A of title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.) or any other State program 
                        funded with qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i) of that Act 
                        (42 U.S.C. 609(a)(7)(B)(i))); and
                            ``(iii) any assistance provided to a 
                        household, landlord, or public housing agency 
                        (as defined in section 3(b)(6) of the United 
                        States Housing Act of 1937 (42 U.S.C. 
                        1437a(b)(6))) to subsidize the rental payment 
                        for a dwelling unit, including assistance 
                        provided for public housing dwelling units 
                        under section 3 of the United States Housing 
                        Act of 1937 (42 U.S.C. 1437a) and assistance 
                        provided under section 8 of that Act (42 U.S.C. 
                        1437f).
                    ``(B) Value of benefits during sanction.--For 
                purposes of subparagraph (A), if the dollar value of 1 
                or more benefits received by a household in a month has 
                been reduced under subsection (g) or another sanction 
                requirement, the calculated dollar value of the 
                sanctioned benefits shall equal the dollar value of the 
                benefit that would have been received if the benefit 
                had not been reduced by the sanction.
            ``(3) Additional activities.--Nothing in this subsection 
        prevents a State agency from requiring an eligible participant 
        to engage in activities not described in paragraph (1) for 
        additional hours during the month.
    ``(i) Work Activation Participation Goals.--
            ``(1) In general.--As a condition of receiving supplemental 
        nutrition assistance program funds under this Act, except as 
        provided in paragraph (2), a State agency shall achieve for 
        each quarter of the fiscal year with respect to all eligible 
        participants receiving assistance under the State program 
        funded under this section for that fiscal year at least the 
        participation rate specified in the following table:


------------------------------------------------------------------------
                                            The quarterly  participation
         ``If the fiscal year is:             rate  shall be at least:
------------------------------------------------------------------------
2019......................................  20 percent
2020......................................  35 percent
2021......................................  50 percent
2022......................................  65 percent
2023......................................  80 percent.
------------------------------------------------------------------------

            ``(2) Adjustment if recessionary period.--If the average 
        national unemployment rate during a quarter of a fiscal year, 
        as determined by the Bureau of Labor Statistics of the 
        Department of Labor, is more than 8 percent, the participation 
        goal for the immediately succeeding quarter shall equal the 
        product obtained by multiplying--
                    ``(A) the applicable quarterly participation rate 
                under paragraph (1); by
                    ``(B) 0.8.
    ``(j) Calculation of Work Activation Participation Rates.--
            ``(1) Definition of sanctioned recipient.--In this 
        subsection, the term `sanctioned recipient' means any eligible 
        participant who--
                    ``(A) was required to participate in work 
                activation in a month;
                    ``(B) failed to perform the assigned work and work 
                preparation activities so as to meet the relevant 
                hourly requirements in subsection (c), (d), or (e)(2); 
                and
                    ``(C) was sanctioned by a reduced benefit payment 
                in the subsequent month under subsection (g).
            ``(2) Requirements.--The work activation participation rate 
        for a State for any quarter of a fiscal year shall equal the 
        average of the monthly participation rates for the State during 
        the 3 months of that quarter.
            ``(3) Monthly participation rate.--For purposes of 
        paragraph (2), the monthly participation rate shall equal the 
        ratio of all countable participants to all eligible 
        participants in the month, as determined under paragraph (4).
            ``(4) Ratio of all countable participants to all eligible 
        participants.--Subject to paragraph (5), the ratio of all 
        countable participants to all eligible participants in a month 
        equals the proportion that--
                    ``(A) the sum obtained by adding--
                            ``(i) all eligible participants who--
                                    ``(I) were required by the State to 
                                engage in interim work activation, full 
                                work activation, or education under 
                                subsection (e)(1) during the month; and
                                    ``(II) fulfilled the criteria for 
                                successful engagement in work 
                                activation for that activity during the 
                                month; and
                            ``(ii) all sanctioned recipients for that 
                        month; bears to
                    ``(B) the average number of eligible participants 
                in the State in that month.
            ``(5) Multiple eligible participants.--A married couple 
        household consisting of more than 1 eligible participant shall 
        be counted as a single eligible participant for purposes of 
        calculating the participation rate under this subsection.
    ``(k) Penalties for Inadequate State Performance.--
            ``(1) In general.--Beginning in the first quarter of fiscal 
        year 2020 and for each subsequent quarter of fiscal year 2020 
        and of each subsequent fiscal year, each State shall count the 
        monthly average number of countable participants under this 
        section.
            ``(2) Reduction in funding.--If the monthly average number 
        of countable participants in a State of a fiscal year is not 
        sufficient to fulfill the relevant work activation 
        participation goal under subsection (i) during that quarter, 
        the supplemental nutrition assistance program funding for the 
        State under this Act shall be reduced for the fiscal quarter 
        that begins 180 days after the first day of the quarter in 
        which the inadequate performance occurred in accordance with 
        paragraph (3).
            ``(3) Funding in penalized quarter.--The total amount of 
        funding a State shall receive for all households with eligible 
        participants for a quarter for which funding is reduced under 
        paragraph (2) shall equal the product obtained by multiplying--
                    ``(A) the total amount of funding that the State 
                would have received in the preceding quarter for all 
                households with eligible participants if no reduction 
                had been in place; by
                    ``(B) the ratio of all countable participants to 
                all eligible participants (as determined under 
                subsection (j)(4)) for the quarter that began 180 days 
                before the first day of the quarter for which funding 
                is reduced.
    ``(l) Funding To Administer Work Activation.--
            ``(1) TANF funding.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, for fiscal year 2019 and each 
                subsequent fiscal year, a State that receives 
                supplemental nutrition assistance program funds under 
                this Act may use during that fiscal year to carry out 
                the work activation program of the State under this 
                section--
                            ``(i) any of the Federal funds available to 
                        the State through the State program funded 
                        under part A of title IV of the Social Security 
                        Act (42 U.S.C. 601 et seq.) in that fiscal 
                        year; and
                            ``(ii) any of the funds from State sources 
                        allocated to the operation of the program 
                        described in clause (i).
                    ``(B) Effect.--Any State that uses State funds 
                allocated to the State program funded under part A of 
                title IV of the Social Security Act (42 U.S.C. 601 et 
                seq.) to administer the work activation program of that 
                State under this section may treat those funds as 
                qualified State expenditures (as defined in section 
                409(a)(7)(B)(i) of that Act (42 U.S.C. 
                609(a)(7)(B)(i))) for purposes of meeting the 
                requirements of section 409(a)(7) of that Act (42 
                U.S.C. 609(a)(7)) in that fiscal year.
            ``(2) Workforce investment act funding.--Notwithstanding 
        any other provision of law, for fiscal year 2019 and each 
        subsequent fiscal year, a State that receives Federal funds 
        under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
        seq.) may use up to 50 percent of those funds during that 
        fiscal year to carry out the work activation program of the 
        State under this section.
            ``(3) Supplemental nutrition assistance program employment 
        and training program.--Notwithstanding any other provision of 
        law, for fiscal year 2019 and each subsequent fiscal year, a 
        State that receives Federal funds under this Act for an 
        employment and training program under section 6(d) may use 
        those funds during that fiscal year to carry out the work 
        activation program of the State under this section.''.

           TITLE III--PREPARING MORE TANF RECIPIENTS FOR WORK

SEC. 301. WORK PREPARATION PROGRAM.

    Section 407 of the Social Security Act (42 U.S.C. 607) is amended 
by adding at the end the following new subsection:
    ``(j) Work Preparation Program.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 for a fiscal year, in addition to achieving the 
        minimum participation rates required for the fiscal year under 
        paragraphs (1) and (2) of subsection (a), shall operate a work 
        preparation program for eligible participants that meets the 
        requirements of this subsection and shall achieve the minimum 
        work preparation participation rate specified in the following 
        table for each quarter of the fiscal year with respect to all 
        eligible participants receiving assistance under the State 
        program funded under this part or any other State program 
        funded with qualified State expenditures (as defined in section 
        409(a)(7)(B)(i)) who are not engaged in employment in any month 
        during the fiscal year:


------------------------------------------------------------------------
                                                   The minimum work
         ``If the fiscal year is:             preparation rate  for the
                                                     quarter is:
------------------------------------------------------------------------
2019......................................  25 percent
2020......................................  50 percent
2021 or thereafter........................  75 percent.
------------------------------------------------------------------------

            ``(2) Eligible participant defined.--In this subsection, 
        the term `eligible participant' means, with respect to a month, 
        an individual who--
                    ``(A) is a parent of a family in which a parent or 
                child receives assistance under the State program 
                funded under this part or any other State program 
                funded with qualified State expenditures (as defined in 
                section 409(a)(7)(B)(i)) in the month; and
                    ``(B) is employed less than 40 hours in the month.
            ``(3) Special rules for married couples with children.--In 
        the case of a married 2-parent family--
                    ``(A) the parents shall only be considered to be 
                eligible participants for a month for purposes of this 
                subsection if the sum of the combined hours of 
                employment for the month for both spouses is less than 
                40 hours;
                    ``(B) if the parents are eligible participants for 
                a month for purposes of this subsection, only one of 
                the parents shall be required to participate in the 
                work preparation program under this subsection in a 
                month; and
                    ``(C) the sum of the hours required of the parents 
                for purposes of meeting the monthly minimum 
                participation rate required for purposes of subsection 
                (a) and meeting the monthly work preparation rate 
                required under this subsection shall not be greater 
                than the hours required for a single head of household 
                for purposes of meeting such rates.
            ``(4) Work preparation requirements.--In order to be 
        considered to be engaging in work preparation for month, an 
        eligible participant shall engage in one or more work 
        preparation activities (as defined in paragraph (5)) for at 
        least an average of 30 hours per week during the month.
            ``(5) Work preparation activities defined.--In this 
        subsection, the term `work preparation activity' means the 
        following:
                    ``(A) Work experience (including work associated 
                with the refurbishing of publicly assisted housing) if 
                sufficient private sector employment is not available.
                    ``(B) On-the-job training.
                    ``(C) Job readiness assistance.
                    ``(D) Community service programs (not to exceed the 
                maximum number of hours determined under paragraph 
                (9)).
                    ``(E) Workfare programs (not to exceed the maximum 
                number of hours determined under paragraph (9)).
                    ``(F) Vocational educational training (not to 
                exceed 12 months with respect to any individual).
                    ``(G) Job skills training directly related to 
                employment.
                    ``(H) Education directly related to employment, in 
                the case of an eligible participant who has not 
                received a high school diploma or a certificate of high 
                school equivalency.
                    ``(I) Satisfactory attendance at secondary school 
                or in a course of study leading to a certificate of 
                general equivalence, in the case of an eligible 
                participant who has not completed secondary school or 
                received such a certificate.
                    ``(J) The provision of child care services to an 
                individual who is participating in a community service 
                program.
                    ``(K) Supervised job search (as defined in 
                paragraph (7)).
            ``(6) Priority for community service.--At least 20 percent 
        of the eligible participants who are required to participate in 
        work preparation for a month shall participate in a community 
        service program or a workfare program.
            ``(7) Supervised job search defined.--In this subsection, 
        the term `supervised job search' means a job search program 
        that has the following characteristics:
                    ``(A) The job search occurs at an official location 
                where the presence and activity of the eligible 
                participant can be directly observed, supervised, and 
                monitored.
                    ``(B) The eligible participant's entry, time 
                onsite, and exit from the official job search location 
                are recorded in a manner that prevents fraud.
                    ``(C) The eligible participant is expected to 
                remain and undertake job search activities at the job 
                search center.
                    ``(D) The quantity of time the eligible participant 
                is observed and monitored engaging in job search at the 
                official location is recorded for purposes of 
                compliance with the work and work activation 
                requirements of sections 6(o) and 30 of the Food and 
                Nutrition Act of 2008.
            ``(8) Penalties against nonperforming individuals.--
                    ``(A) In general.--If an eligible participant fails 
                to fully perform the work preparation activities 
                required in accordance with this subsection, the State 
                shall--
                            ``(i) reduce the amount of assistance 
                        otherwise payable to the entire family of the 
                        eligible participant pro rata (or more, at the 
                        option of the State) with respect to the month 
                        immediately after any month in which the 
                        eligible participant so fails to perform; or
                            ``(ii) terminate such assistance.
                    ``(B) Pro rata reduction.--For purposes of 
                subparagraph (A)(i), the amount of a pro rata reduction 
                in assistance shall be determined by multiplying the 
                amount of monthly assistance that would, in the absence 
                of the application of this paragraph be paid to the 
                entire family, by the ratio of--
                            ``(i) the hours of required work and work 
                        preparation activities performed by the 
                        eligible participant during the month; over
                            ``(ii) the number or hours of work and work 
                        preparation the State required the eligible 
                        participant to perform in accordance with the 
                        requirements of this section.
            ``(9) Limitation on countable hours of participation in 
        community service or workfare.--
                    ``(A) In general.--The maximum number of hours that 
                an eligible participant may be counted as engaging in a 
                community service program or a workfare program in a 
                month for purposes of meeting the minimum work 
                preparation rates for the month under this subsection 
                shall not exceed the total dollar cost of all means-
                tested benefits received by the eligible participant's 
                family for the month divided by the Federal minimum 
                wage.
                    ``(B) Total dollar cost of all means-tested 
                benefits defined.--
                            ``(i) In general.--In this subsection, the 
                        term `total dollar cost of all means-tested 
                        benefits' means the sum of the dollar cost of 
                        all benefits received by a family under--
                                    ``(I) the supplemental nutrition 
                                assistance program established under 
                                the Food and Nutrition Act of 2008 (7 
                                U.S.C. 2011 et seq.);
                                    ``(II) the State program funded 
                                under this part or any other State 
                                program funded with qualified State 
                                expenditures (as defined in section 
                                409(a)(7)(B)(i)); and
                                    ``(III) any assistance provided to 
                                a household, landlord, or public 
                                housing agency (as defined in section 
                                3(b)(6) of the United States Housing 
                                Act of 1937 (42 U.S.C. 1437a(b)(6))) to 
                                subsidize the rental payment for a 
                                dwelling unit, including assistance 
                                provided for public housing dwelling 
                                units under section 3 of the United 
                                States Housing Act of 1937 (42 U.S.C. 
                                1437a) and assistance provided under 
                                section 8 of that Act (42 U.S.C. 
                                1437f).
                            ``(ii) Value of benefits during sanction.--
                        For purposes of clause (i), if the dollar value 
                        of one or more benefits received by a household 
                        in a month has been reduced under paragraph (8) 
                        or another sanction requirement, the calculated 
                        dollar value of the sanctioned benefits shall 
                        equal the dollar value of the benefit that 
                        would have been received if the benefit had not 
                        been reduced by the sanction.
                    ``(C) Additional activities.--Nothing in this 
                paragraph shall prevent a State from requiring an 
                eligible participant to engage in activities not 
                described in subparagraph (A) for additional hours 
                during a month.
            ``(10) Calculation of work preparation participation 
        rates.--
                    ``(A) Definition of sanctioned recipient.--In this 
                subsection, the term `sanctioned recipient' means any 
                eligible participant who--
                            ``(i) was required to participate in work 
                        preparation in a month;
                            ``(ii) failed to perform the assigned work 
                        and work preparation activities so as to meet 
                        the relevant hourly requirements; and
                            ``(iii) was sanctioned by a reduced 
                        assistance payment in the subsequent month 
                        under paragraph (8).
                    ``(B) Requirements.--The work preparation 
                participation rate for a State for any quarter of a 
                fiscal year shall equal the average of the monthly 
                participation rates for the State during the 3 months 
                of that quarter.
                    ``(C) Monthly participation rate.--For purposes of 
                subparagraph (B), the monthly participation rate shall 
                equal the ratio of all countable participants to all 
                eligible participants in the month, as determined under 
                subparagraph (D).
                    ``(D) Ratio of all countable participants to all 
                eligible participants.--Subject to subparagraph (E), 
                the ratio of all countable participants to all eligible 
                participants in a month equals the proportion that--
                            ``(i) the sum obtained by adding--
                                    ``(I) all eligible participants 
                                who--
                                            ``(aa) were required by the 
                                        State to engage in work 
                                        preparation during the month; 
                                        and
                                            ``(bb) fulfilled the 
                                        criteria for successful 
                                        engagement in work preparation 
                                        during the month; and
                                    ``(II) all sanctioned recipients 
                                for that month; bears to
                            ``(ii) the average number of eligible 
                        participants in the State in that month.
                    ``(E) Multiple eligible participants.--A married 
                couple household consisting of more than 1 eligible 
                participant shall be counted as a single eligible 
                participant for purposes of calculating the 
                participation rate under this paragraph.
            ``(11) Penalties for inadequate state performance.--
                    ``(A) In general.--Beginning in the first quarter 
                of fiscal year 2019 and for each subsequent quarter of 
                fiscal year 2019 and of each subsequent fiscal year, 
                each State shall count the monthly average number of 
                countable participants under this subsection.
                    ``(B) Reduction in funding.--If the monthly average 
                number of countable participants in a State is not 
                sufficient to meet the work preparation participation 
                rate required under paragraph (1) during that quarter, 
                the grant payable to the State under section 403(a)(1) 
                shall be reduced for the fiscal quarter that begins 180 
                days after the first day of the quarter in which the 
                inadequate performance occurred in accordance with 
                subparagraph (C).
                    ``(C) Funding in penalized quarter.--The total 
                amount of funding a State shall receive for a quarter 
                for which funding is reduced under subparagraph (B) 
                shall equal the product obtained by multiplying--
                            ``(i) the total amount of funding that the 
                        State would have received in the preceding 
                        quarter for the grant payable to the State 
                        under section 403(a)(1) if no reduction had 
                        been in place; by
                            ``(ii) the ratio of all countable 
                        participants to all eligible participants (as 
                        determined under paragraph (10)(D)) for the 
                        quarter that began 180 days before the first 
                        day of the quarter for which funding is 
                        reduced.''.

SEC. 302. CHANGES TO MANDATORY WORK REQUIREMENTS.

    (a) Elimination of Separate Participation Rate Requirements for 2-
Parent Families.--
            (1) In general.--Section 407 of the Social Security Act (42 
        U.S.C. 607) is amended--
                    (A) in subsection (a)--
                            (i) by striking all through ``A State'' the 
                        first place it appears and inserting the 
                        following:
    ``(a) Participation Rate Requirements.--A State''; and
                            (ii) by striking paragraph (2);
                    (B) in subsection (b)--
                            (i) in the subsection heading, by striking 
                        ``Rates'' and inserting ``Rate'';
                            (ii) in paragraph (1)(A), by striking 
                        ``(a)(1)'' and inserting ``(a)'';
                            (iii) by striking paragraph (2) and 
                        redesignating paragraphs (3), (4), and (5) as 
                        paragraphs (2), (3), and (4), respectively;
                            (iv) in paragraph (3) (as so redesignated), 
                        by striking ``paragraphs (1)(B) and (2)(B)'' 
                        and inserting ``paragraph (1)(B)''; and
                            (v) in paragraph (4) (as so redesignated), 
                        by striking ``rates'' and inserting ``rate''; 
                        and
                    (C) in subsection (c)--
                            (i) in paragraph (1)--
                                    (I) by striking all through ``For 
                                purposes of subsection (b)(1)(B)(i)'' 
                                and inserting the following:
            ``(1) General rules.--For purposes of subsection 
        (b)(1)(B)(i)''; and
                                    (II) by striking subparagraph (B); 
                                and
                            (ii) in paragraph (2)(D)--
                                    (I) by striking ``paragraphs 
                                (1)(B)(i) and (2)(B) of subsection 
                                (b)'' and inserting ``subsection 
                                (b)(1)(B)(i)''; and
                                    (II) by striking ``in all families 
                                and in 2-parent families, 
                                respectively,''.
            (2) Conforming amendment.--The paragraph heading for 
        section 409(a)(3) of such Act (42 U.S.C. 609(a)(3)) is amended 
        by striking ``Rates'' and inserting ``Rate''.
    (b) Application of State Option for Participation Requirement 
Exemption to All Families.--Section 407(b)(4) of the Social Security 
Act (42 U.S.C. 607(b)(4)), as redesignated and amended by subsection 
(a)(1)(B), is amended--
            (1) by striking ``an individual who is a single custodial 
        parent caring for'' and inserting ``a family that includes''; 
        and
            (2) by striking ``such an individual'' and inserting ``such 
        a family''.
    (c) Application of Child Under 6 Work Participation Rule to All 
Families.--Section 407(c)(2)(B) of the Social Security Act (42 U.S.C. 
607(c)(2)(B)) is amended to read as follows:
                    ``(B) Family with child under age 6 deemed to be 
                meeting work participation requirements if any parent 
                is engaged in work for 20 hours per week.--For purposes 
                of determining monthly participation rates under 
                subsection (b)(1)(B)(i), a family that includes a child 
                who has not attained 6 years of age is deemed to be 
                engaged in work for a month if any parent is engaged in 
                work for an average of at least 20 hours per week 
                during the month.''.
    (d) Effective Date.--The amendments made by this section take 
effect on October 1, 2018.

        TITLE IV--MODIFICATION TO MEANS-TESTED HOUSING PROGRAMS

SEC. 401. DEFINITIONS.

    In this title:
            (1) Covered state housing program.--The term ``covered 
        State housing program'' means a housing program carried out by 
        a State using grant funds awarded under section 404.
            (2) Means-tested housing program.--The term ``means-tested 
        housing program'' means each of the following Federal programs:
                    (A) The project-based and tenant-based rental 
                assistance programs under section 8 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f).
                    (B) Public housing assistance under the United 
                States Housing Act of 1937 (42 U.S.C. 1437 et seq.).
                    (C) The HOME Investment Partnerships Program under 
                title II of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12721 et seq.).
                    (D) Homeless Assistance Grants under title IV of 
                the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                11360 et seq.).
                    (E) Assistance from the Rural Housing Insurance 
                Fund under section 517 of the Housing Act of 1949 (42 
                U.S.C. 1487).
                    (F) Assistance from the Rural Housing Service 
                (other than assistance described in subparagraph (E)).
                    (G) The supportive housing for the elderly program 
                under section 202 of the Housing Act of 1959 (12 U.S.C. 
                1701q).
                    (H) Native American Housing Block Grants under 
                title I of the Native American Housing Assistance and 
                Self-Determination Act of 1996 (25 U.S.C. 4111 et 
                seq.).
                    (I) The rental assistance programs under--
                            (i) section 101 of the Housing and Urban 
                        Development Act of 1965 (12 U.S.C. 1701s); and
                            (ii) section 236(f)(2) of the National 
                        Housing Act (12 U.S.C. 1715z-1(f)(2)).
                    (J) The supportive housing for persons with 
                disabilities program under section 811(d)(2) of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 8013(d)(2)).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (4) State.--The term ``State'' means a State, the 
        Commonwealth of Puerto Rico, the District of Columbia, Guam, 
        American Samoa, the United States Virgin Islands, and the 
        Commonwealth of the Northern Mariana Islands.
            (5) State recipient.--The term ``State recipient'' means a 
        State that receives a grant under this title.

SEC. 402. REPEAL OF MEANS-TESTED HOUSING PROGRAMS.

    Effective October 1, 2019, no Federal funds shall be made available 
to carry out any means-tested housing program and no Federal officer or 
employee shall take any action to carry out such a program.

SEC. 403. AUTHORIZATION OF APPROPRIATIONS.

    With respect to the total amount authorized to be appropriated for 
means-tested housing programs for fiscal year 2017, there is authorized 
to be appropriated to carry out section 404, an amount equal to--
            (1) such amount for each of fiscal years 2019 through 2024;
            (2) 90 percent of such amount for fiscal year 2025;
            (3) 80 percent of such amount for fiscal year 2026;
            (4) 70 percent of such amount for fiscal year 2027;
            (5) 60 percent of such amount for fiscal year 2028; and
            (6) 50 percent of such amount for fiscal year 2029.

SEC. 404. GRANTS TO STATES.

    (a) In General.--Beginning with fiscal year 2019, and for each 
fiscal year thereafter, the Secretary shall award grants to eligible 
States--
            (1) using amounts authorized to be appropriated under 
        section 403; and
            (2) in accordance with this section.
    (b) Allotments.--From the amount appropriated to carry out this 
section for a fiscal year, the Secretary shall allot to each eligible 
State an amount that bears the same relationship to such appropriated 
amount as the amount that the State received for means-tested housing 
programs for the most recent fiscal year for which satisfactory data is 
available bears to the total amount appropriated for means-tested 
housing programs for that fiscal year.
    (c) Application.--To be eligible to receive a grant under this 
section, a State shall submit an application to the Secretary that 
includes the amount the State received for the previous year's means-
tested housing programs.
    (d) Use of Funds.--A State that receives a grant under this section 
may only use the amounts of the grant--
            (1) to fund housing programs in the State;
            (2) to administer the programs described in paragraph (1); 
        and
            (3) to provide direct technical assistance, oversight, 
        monitoring, research, and training with respect to the programs 
        described in paragraph (1).
    (e) Matching Funds.--A State that receives a grant under this 
section shall provide, toward the cost of the programs assisted under 
the grant, from non-Federal sources, an amount equal to 20 percent of 
the amount of the grant.
    (f) Flexibility.--Notwithstanding any other provision of Federal 
law (other than this section), a State that receives a grant under this 
section--
            (1) shall have full flexibility to use the amounts of the 
        grant to finance a housing provider, service, or program; and
            (2) in particular, to the extent permitted under State law, 
        may use the amounts of the grant to establish a portable 
        voucher system that allows a parent of a low-income child to 
        use a portion of the grant funds, other available public funds, 
        or private funds to pay some or all of the costs of attendance 
        at a private prekindergarten education program.

SEC. 405. STATE RECIPIENT REPORTS.

    (a) Self-Assessments.--A State that receives a grant under section 
404 annually shall conduct a comprehensive self-assessment of the 
effectiveness and progress of the covered State housing programs of the 
State during the most recent fiscal year in meeting program goals 
established by the State.
    (b) Reports.--
            (1) In general.--A State that receives a grant under 
        section 404 shall develop and make available to the public--
                    (A) an online and searchable report containing the 
                self-assessment conducted under subsection (a); and
                    (B) an improvement plan to strengthen any areas 
                identified in the self-assessment as weaknesses or in 
                need of improvement.
            (2) Personal information.--A State may not reveal, in a 
        report developed under paragraph (1), any personally 
        identifiable information about any participant in a covered 
        State housing program of the State.
            (3) Contents.--A State shall include in each report 
        developed under paragraph (1)--
                    (A) the total amount of public and private funds 
                received by the State for covered State housing 
                programs and the amount received from each source 
                during the most recent fiscal year;
                    (B) an explanation of budgetary expenditures for 
                covered State housing programs during the most recent 
                fiscal year and a proposed budget for those programs 
                for the subsequent fiscal year; and
                    (C) the total number of low-income participants 
                served by covered State housing programs and the 
                average monthly enrollment in those programs during the 
                most recent fiscal year.

SEC. 406. RESEARCH.

    (a) Study.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study of the different approaches and 
        best practices used by States in carrying out this title.
            (2) Scope.--The material studied under paragraph (1) shall 
        be limited to the information provided by States in the reports 
        made available under section 405(b).
    (b) Report.--Not later than October 1 of the fourth fiscal year 
beginning after the date of enactment of this Act, the Comptroller 
General shall submit a report containing the results of the study 
conducted under subsection (a) to--
            (1) the Committee on Banking, Housing, and Urban Affairs of 
        the Senate;
            (2) the Committee on the Budget of the Senate;
            (3) the Committee on Financial Services of the House of 
        Representatives; and
            (4) the Committee on the Budget of the House of 
        Representatives.

SEC. 407. RULE OF CONSTRUCTION.

    Nothing in this title shall be construed to authorize the Secretary 
or any employee or contractor of the Department of Housing and Urban 
Development to mandate, direct, or control the selection of a covered 
State housing program by a State.

              TITLE V--PROHIBITION ON FUNDING OF ABORTION

SEC. 501. PROHIBITION ON FUNDING FOR ABORTIONS.

    No funds authorized or appropriated by Federal law, and none of the 
funds in any trust fund to which funds are authorized or appropriated 
by Federal law, shall be expended for any abortion.

SEC. 502. PROHIBITION ON FUNDING FOR HEALTH BENEFITS PLANS THAT COVER 
              ABORTION.

    None of the funds authorized or appropriated by Federal law, and 
none of the funds in any trust fund to which funds are authorized or 
appropriated by Federal law, shall be expended for health benefits 
coverage that includes coverage of abortion.

SEC. 503. PROHIBITION ON TAX BENEFITS RELATING TO ABORTION.

    For taxable years beginning after the date of the enactment of this 
section, no credit shall be allowed under the internal revenue laws 
with respect to amounts paid or incurred for an abortion or with 
respect to amounts paid or incurred for a health benefits plan 
(including premium assistance) that includes coverage of abortion.

SEC. 504. CONSTRUCTION RELATING TO SEPARATE COVERAGE.

    Nothing in this title shall be construed as prohibiting any 
individual, entity, or State or locality from purchasing separate 
abortion coverage or health benefits coverage that includes abortion so 
long as such coverage is paid for entirely using only funds not 
authorized or appropriated by Federal law and such coverage shall not 
be purchased using matching funds required for a federally subsidized 
program, including a State's or locality's contribution of Medicaid 
matching funds.

SEC. 505. CONSTRUCTION RELATING TO THE USE OF NON-FEDERAL FUNDS FOR 
              HEALTH COVERAGE.

    Nothing in this title shall be construed as restricting the ability 
of any non-Federal health benefits coverage provider from offering 
abortion coverage, or the ability of a State or locality to contract 
separately with such a provider for such coverage, so long as only 
funds not authorized or appropriated by Federal law are used and such 
coverage shall not be purchased using matching funds required for a 
federally subsidized program, including a State's or locality's 
contribution of Medicaid matching funds.

SEC. 506. TREATMENT OF ABORTIONS RELATED TO RAPE, INCEST, OR PRESERVING 
              THE LIFE OF THE MOTHER.

    The limitations established in this title shall not apply to an 
abortion--
            (1) if the pregnancy is the result of an act of rape or 
        incest; or
            (2) in the case where a woman suffers from a physical 
        disorder, physical injury, or physical illness that would, as 
        certified by a physician, place the woman in danger of death 
        unless an abortion is performed, including a life-endangering 
        physical condition caused by or arising from the pregnancy 
        itself.
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