Title: Jobs and Opportunity with Benefits and Services for Success Act
Policy area: Social Welfare

Summary:
Jobs and Opportunity with Benefits and Services for Success Act
This bill modifies requirements related to the Temporary Assistance for Needy Families (TANF) program, including by establishing stricter work requirements for beneficiaries and requiring states to measure work outcomes. The bill also extends various TANF grant programs through FY2023.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3692 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3692

 To amend part A of title IV of the Social Security Act, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 29, 2018

  Mr. Daines introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend part A of title IV of the Social Security Act, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jobs and Opportunity with Benefits 
and Services for Success 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.
Sec. 3. References.
Sec. 4. Helping more Americans enter and remain in the workforce.
Sec. 5. Expecting universal engagement and case management.
Sec. 6. Promoting accountability by measuring work outcomes.
Sec. 7. Targeting funds to truly needy families.
Sec. 8. Targeting funds to core purposes.
Sec. 9. Prohibition on State diversion of Federal funds to replace 
                            State spending.
Sec. 10. Inclusion of poverty reduction as a program purpose.
Sec. 11. Definitions related to use of funds.
Sec. 12. Increasing funding for child care.
Sec. 13. Effective date.

SEC. 3. REFERENCES.

    Except as otherwise expressly provided, wherever in this Act 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 Social Security Act.

SEC. 4. HELPING MORE AMERICANS ENTER AND REMAIN IN THE WORKFORCE.

    (a) Family Assistance Grants.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)) is amended in each of subparagraphs (A) and (C) by striking 
``2017 and 2018'' and inserting ``2019 through 2023''.
    (b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) (42 U.S.C. 603(a)(2)(D)) is amended--
            (1) by striking ``2017 and 2018'' and inserting ``2019 
        through 2023''; and
            (2) by striking ``for fiscal year 2017 or 2018''.
    (c) Tribal Family Assistance Grants.--Paragraphs (1)(A) and (2)(A) 
of section 412(a) (42 U.S.C. 612(a)) are each amended by striking 
``2017 and 2018'' and inserting ``2019 through 2023''.
    (d) Improving Access to Child Care To Support Work.--Section 
418(a)(3) (42 U.S.C. 618(a)(3)) is amended by striking ``$2,917,000,000 
for each of fiscal years 2017 and 2018'' and inserting ``$3,525,000,000 
for each of fiscal years 2019 through 2023''.
    (e) Grants to the Territories.--Section 1108(b)(2) (42 U.S.C. 
1308(b)(2)) is amended by striking ``2017 and 2018'' and inserting 
``2019 through 2023''.

SEC. 5. EXPECTING UNIVERSAL ENGAGEMENT AND CASE MANAGEMENT.

    (a) In General.--Section 408(b) (42 U.S.C. 608(b)) is amended to 
read as follows:
    ``(b) Individual Opportunity Plans.--
            ``(1) Assessment.--The State agency responsible for 
        administering the State program funded under this part shall 
        make an initial assessment of the following for each work-
        eligible individual (as defined in the regulations promulgated 
        pursuant to section 407(i)(1)(A)(i)):
                    ``(A) The education obtained, skills, prior work 
                experience, work readiness, and barriers to work of the 
                individual.
                    ``(B) The well-being of the children in the family 
                of the individual and, where appropriate, activities or 
                services (such as services offered by a program funded 
                under section 511) to improve the well-being of the 
                children.
            ``(2) Contents of plans.--On the basis of the assessment 
        required by paragraph (1) of this subsection, the State agency, 
        in consultation with the individual, shall develop an 
        individual opportunity plan that--
                    ``(A) includes a personal responsibility agreement 
                in which the individual acknowledges receipt of 
                publicly funded benefits and responsibility to comply 
                with program requirements in order to receive the 
                benefits;
                    ``(B) sets forth the obligations of the individual 
                to participate in work activities (as defined in 
                section 407(d)), and the number of hours per month for 
                which the individual will so participate pursuant to 
                section 407;
                    ``(C) sets forth an employment goal and planned 
                short-, intermediate-, and long-term actions to achieve 
                the goal, and, in the case of an individual who has not 
                attained 24 years of age and is in secondary school or 
                the equivalent, the intermediate action may be 
                completion of secondary school or the equivalent;
                    ``(D) describes the job counseling and other 
                services the State will provide to the individual to 
                enable the individual to obtain and keep employment in 
                the private sector;
                    ``(E) may include referral to appropriate substance 
                abuse or mental health treatment; and
                    ``(F) is signed by the individual.
            ``(3) Timing.--The State agency shall comply with paragraph 
        (1) and (2) with respect to a work-eligible individual--
                    ``(A) within 180 days after the effective date of 
                this subsection, in the case of an individual who, as 
                of such effective date, is a recipient of assistance 
                under the State program funded under this part (as in 
                effect immediately before such effective date); or
                    ``(B) within 60 days after the individual is 
                determined to be eligible for the assistance, in the 
                case of any other individual.
            ``(4) Penalty for noncompliance by individual.--In addition 
        to any other penalties required under the State program funded 
        under this part, the State shall reduce, by such amount as the 
        State considers appropriate, the amount of assistance otherwise 
        payable under the State program to a family that includes an 
        individual who fails without good cause to comply with an 
        individual opportunity plan developed pursuant to this 
        subsection, that is signed by the individual.
            ``(5) Periodic review.--The State shall meet with each 
        work-eligible individual assessed by the State under paragraph 
        (1), not less frequently than every 90 days, to--
                    ``(A) review the individual opportunity plan 
                developed for the individual;
                    ``(B) discuss with the individual the progress made 
                by the individual in achieving the goals specified in 
                the plan; and
                    ``(C) update the plan, as necessary, to reflect any 
                changes in the circumstances of the individual since 
                the plan was last reviewed.''.
    (b) State Penalty for Failure To Comply.--Section 409(a)(3) (42 
U.S.C. 609(a)(3)) is amended--
            (1) in the paragraph heading, by striking ``satisfy minimum 
        participation rates'' and inserting ``achieve requisite 
        outcomes or comply with universal engagement requirement''; and
            (2) in subparagraph (A), by inserting ``or 408(b)'' after 
        ``407(a)''.

SEC. 6. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES.

    (a) In General.--Section 407(a) (42 U.S.C. 607(a)) is amended to 
read as follows:
    ``(a) Performance Accountability and Work Outcomes.--
            ``(1) Purpose.--The purpose of this subsection is to 
        provide for the establishment of performance accountability 
        measures to assess the effectiveness of States in increasing 
        employment, retention, and advancement among families receiving 
        assistance under the State program funded under this part.
            ``(2) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve the requisite level 
        of performance on an indicator described in paragraph (3)(B) of 
        this subsection for the fiscal year.
            ``(3) Measuring state performance.--
                    ``(A) In general.--Each State, in consultation with 
                the Secretary, shall collect and submit to the 
                Secretary the information necessary to measure the 
                level of performance of the State for each indicator 
                described in subparagraph (B), for fiscal year 2020 and 
                each fiscal year thereafter, and the Secretary shall 
                use the information collected for fiscal year 2020 to 
                establish the baseline level of performance for each 
                State for each such indicator.
                    ``(B) Indicators of performance.--The indicators 
                described in this subparagraph, for a fiscal year, are 
                the following:
                            ``(i) The percentage calculated by dividing 
                        the number of individuals who were work-
                        eligible individuals as of the time of exit 
                        from the program, who are in unsubsidized 
                        employment during the 2nd quarter after the 
                        exit by the total caseload in the month of 
                        their exit.
                            ``(ii) The percentage calculated by 
                        dividing the number of individuals who were 
                        work-eligible individuals who were in 
                        unsubsidized employment in the 2nd quarter 
                        after the exit, who are also in unsubsidized 
                        employment during the 4th quarter after the 
                        exit by the total caseload in the month of 
                        their exit.
                            ``(iii) The median earnings of individuals 
                        who were work-eligible individuals as of the 
                        time of exit from the program, who are in 
                        unsubsidized employment during the 2nd quarter 
                        after the exit.
                            ``(iv) The percentage of individuals who 
                        have not attained 24 years of age, are 
                        attending high school or enrolled in an 
                        equivalency program, and are work-eligible 
                        individuals or were work-eligible individuals 
                        as of the time of exit from the program, who 
                        obtain a high school degree or its recognized 
                        equivalent while receiving assistance under the 
                        State program funded under this part or within 
                        1 year after the exit.
                    ``(C) Levels of performance.--
                            ``(i) In general.--For each State 
                        submitting a State plan pursuant to section 
                        402(a), there shall be established, in 
                        accordance with this subparagraph, levels of 
                        performance for each of the indicators 
                        described in subparagraph (B).
                            ``(ii) Agreement on requisite performance 
                        level for each indicator.--
                                    ``(I) In general.--The Secretary 
                                and the State shall negotiate the 
                                requisite level of performance for the 
                                State with respect to each indicator 
                                described in subparagraph (B), for each 
                                of fiscal years 2020 through 2023, and 
                                in the case of each of fiscal years 
                                2021 through 2023, shall do so before 
                                the beginning of the respective fiscal 
                                year.
                                    ``(II) Requirements in establishing 
                                performance levels.--In establishing 
                                the requisite levels of performance, 
                                the State and the Secretary shall--
                                            ``(aa) take into account 
                                        how the levels involved compare 
                                        with the levels established for 
                                        other States;
                                            ``(bb) ensure the levels 
                                        involved are adjusted, using 
                                        the objective statistical model 
                                        referred to in clause (iv), 
                                        based on--

                                                    ``(AA) the 
                                                differences among 
                                                States in economic 
                                                conditions, including 
                                                differences in 
                                                unemployment rates or 
                                                employment losses or 
                                                gains in particular 
                                                industries; and

                                                    ``(BB) the 
                                                characteristics of 
                                                participants on entry 
                                                into the program, 
                                                including indicators of 
                                                prior work history, 
                                                educational or 
                                                occupational skills 
                                                attainment, or other 
                                                factors that may affect 
                                                employment and 
                                                earnings; and

                                                    ``(CC) take into 
                                                account the extent to 
                                                which the levels 
                                                involved promote 
                                                continuous improvement 
                                                in performance by each 
                                                State.

                            ``(iii) Revisions based on economic 
                        conditions and individuals receiving assistance 
                        during the fiscal year.--The Secretary shall, 
                        in accordance with the objective statistical 
                        model referred to in clause (iv), revise the 
                        requisite levels of performance for a State and 
                        a fiscal year to reflect the economic 
                        conditions and characteristics of the relevant 
                        individuals in the State during the fiscal 
                        year.
                            ``(iv) Statistical adjustment model.--The 
                        Secretary shall use an objective statistical 
                        model to make adjustments to the requisite 
                        levels of performance for the economic 
                        conditions and characteristics of the relevant 
                        individuals, and shall consult with the 
                        Secretary of Labor to develop a model that is 
                        the same as or similar to the model described 
                        in section 116(b)(3)(A)(viii) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3141(b)(3)(A)(viii)).
                            ``(v) Definition of exit.--In this 
                        subsection, the term `exit' means, with respect 
                        to a State program funded under this part, 
                        ceases to a receive a TANF benefit under the 
                        program.
                    ``(D) Regulations.--In order to ensure nationwide 
                comparability of data, the Secretary, after 
                consultation with the Secretary of Labor and with 
                States, shall issue regulations governing the 
                establishment of the performance accountability system 
                under this subsection and a template for performance 
                reports to be used by all States consistent with 
                subsection (b).''.
    (b) Reports on State Performance on HHS Online Dashboard.--Section 
407(b) (42 U.S.C. 607(b)) is amended to read as follows:
    ``(b) Publication of State Performance.--The Secretary shall, 
directly or through the use of grants or contracts, establish and 
operate an Internet website that is accessible to the public, with a 
dashboard that is regularly updated and provides easy-to-understand 
information on the performance of each State program funded under this 
part, including a profile for each such program, expressed by use of a 
template, which shall include--
            ``(1) information on the indicators and requisite 
        performance levels established for the State under subsection 
        (a), including, with respect to each such level, whether the 
        State achieves, exceeds, or fails to achieve the level on an 
        ongoing basis, including--
                    ``(A) information on any adjustments made to the 
                requisite levels using the statistical adjustment model 
                described in subsection (a)(3)(C)(iv); and
                    ``(B) a grade based on the overall performance of 
                the State, as determined by the Secretary and in 
                consultation with the State, and the overall 
                performance shall be graded based on the performance 
                indicators and weights for each such indicator as 
                described in subsection (a);
            ``(2) information reported under section 411 on the 
        characteristics and demographics of individuals receiving 
        assistance under the State program, including--
                    ``(A) the number and percentage of child-only cases 
                and reason why the cases are child-only; and
                    ``(B) the average weekly number of hours that each 
                work-eligible individual in the State program 
                participates in work activities, including a separate 
                section showing the number and percentage of the work-
                eligible individuals with zero hours of participation 
                and the reason for non-participation;
            ``(3) information on the results of improper payments 
        reviews;
            ``(4) a link to the State plan approved under section 402; 
        and
            ``(5) information regarding any penalty imposed, or other 
        corrective action taken, by the Secretary against a State for 
        failing to achieve a requisite performance level or any other 
        requirement imposed by or under this part.''.
    (c) Modification of Rules for Determining Whether an Individual Is 
Engaged in Work.--Section 407(c) (42 U.S.C. 607(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``For purposes of 
                        subsection (b)(1)(B)(i), a'' and inserting 
                        ``A''; and
                            (ii) by striking ``, not fewer than'' and 
                        all that follows through ``this subsection''; 
                        and
                    (B) in subparagraph (B)--
                            (i) in the matter preceding clause (i), by 
                        striking ``For purposes of subsection 
                        (b)(2)(B), an'' and inserting ``An'';
                            (ii) in clause (i), by striking ``, not 
                        fewer than'' and all that follows through 
                        ``this subsection''; and
                            (iii) in clause (ii), by striking ``, not 
                        fewer than'' and all that follows through 
                        ``subsection (d)''; and
            (2) in paragraph (2)--
                    (A) by striking subparagraphs (A) and (D);
                    (B) in each of subparagraphs (B) and (C), by 
                striking ``For purposes of determining monthly 
                participation rates under subsection (b)(1)(B)(i), a'' 
                and inserting ``A''; and
                    (C) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively.
    (d) Modifications to Allowable Work Activities.--
            (1) In general.--Section 407(d) (42 U.S.C. 607(d)) is 
        amended--
                    (A) in paragraph (5), by inserting ``, including 
                apprenticeship'' before the semicolon;
                    (B) in paragraph (6), by inserting ``supervised'' 
                before ``job search''; and
                    (C) in paragraph (8), by striking ``(not to exceed 
                12 months with respect to any individual)'' and 
                inserting ``, including career technical education''.
            (2) Supervised job search defined.--Section 419 (42 U.S.C. 
        619) is amended by adding at the end the following:
            ``(6) Supervised job search.--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 recipient can be 
                directly observed, supervised, and monitored.
                    ``(B) The entry, time onsite, and exit of the 
                recipient from the official job search location are 
                recorded in a manner that prevents fraud.
                    ``(C) The recipient is expected to remain and 
                undertake job search activities at the job search 
                center.
                    ``(D) 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 participation requirements of 
                the State program funded under this part.''.
    (e) Supporting Work-Eligible Individuals Struggling With Substance 
Abuse.--Section 407(c)(2) (42 U.S.C. 607(c)(2)), as amended by 
subsection (c)(2) of this section, is amended by adding at the end the 
following:
                    ``(C) Supporting work-eligible individuals 
                struggling with substance abuse.--After a work-eligible 
                individual has participated for 3 months in a fiscal 
                year in an activity described in subsection (d)(6) of 
                this section, the individual may, at State option, be 
                considered to be engaged in work for additional months 
                (not to exceed an additional 3 months with respect to 
                the individual) by reason of participation in such an 
                activity if the individual is participating in 
                substance abuse treatment, mental health treatment, or 
                rehabilitation activities, the need for which has been 
                determined to be necessary to prepare the individual 
                for employment or to support the individual in 
                employment and has been documented by a qualified 
                medical, substance abuse, or mental health 
                professional.''.
    (f) Pro Rata Penalties Against Individuals.--Section 407(e) (42 
U.S.C. 607(e)) is amended by adding at the end the following:
            ``(3) Pro rata reduction.--For purposes of subparagraph (A) 
        in paragraph (1), the amount of a pro rata reduction in 
        assistance shall be determined by multiplying the total 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--
                    ``(A) the hours of required work activities as 
                designated in subsection (d) actually performed by the 
                individual during the month; over
                    ``(B) the number of hours of work activities that 
                the individual was required to perform during the month 
                in accordance with the provisions of subsection (c).''.
    (g) Annual Reports to Congress.--Section 411(b)(1)(A) (42 U.S.C. 
611(b)(1)(A)) is amended by striking ``participation rates'' and 
inserting ``outcome measures''.

SEC. 7. TARGETING FUNDS TO TRULY NEEDY FAMILIES.

    (a) Prohibition on Use of Funds for Families With Income Greater 
Than Twice the Poverty Line.--Section 404(k) (42 U.S.C. 604(k)) is 
amended to read as follows:
    ``(k) Prohibitions.--
            ``(1) Use of funds for persons with income greater than 
        twice the poverty line.--A State to which a grant is made under 
        this part shall not use the grant to provide any assistance or 
        services to a family whose monthly income exceeds twice the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 
        9902(2))).''.
    (b) Elimination of Limitation on Use of Funds for Case Management 
Activities.--Section 404(b)(2) (42 U.S.C. 604(b)(2)) is amended to read 
as follows:
            ``(2) Exceptions.--Paragraph (1) of this subsection shall 
        not apply to the use of a grant for--
                    ``(A) information technology and computerization 
                needed for tracking, monitoring, or data collection 
                required by or under this part; or
                    ``(B) case management activities to carry out 
                section 408(b).''.
    (c) Prohibition on Use of Funds for Direct Spending on Child Care 
or Child Welfare Services or Activities.--Section 404(k) (42 U.S.C. 
604(k)), as amended by subsection (a) of this section, is amended by 
adding at the end the following:
            ``(2) Direct spending on child care services or activities 
        or child welfare services or activities.--A State to which a 
        grant is made under this part shall not use the grant for 
        direct spending on child care services or activities or direct 
        spending on child welfare services or activities.''.
    (d) Expansion of Authority To Transfer Funds to Other Programs.--
Section 404(d) (42 U.S.C. 604(d)) is amended by striking paragraphs (1) 
through (3) and inserting the following:
            ``(1) In general.--A State may use not more than 50 percent 
        of the grant made to the State under section 403(a)(1) to carry 
        out a State program pursuant to any or all of the following 
        provisions of law:
                    ``(A) The Child Care and Development Block Grant 
                Act of 1990.
                    ``(B) Title I of the Workforce Innovation and 
                Opportunity Act.
                    ``(C) Subpart 1 of part B of this title.
            ``(2) Limitation on amount transferrable to subpart 1 of 
        part b of this title.--
                    ``(A) In general.--A State may use not more than 
                the applicable percentage of the amount of a grant made 
                to the State under section 403(a)(1) to carry out State 
                programs pursuant to subpart 1 of part B.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage is 10 
                percent.
            ``(3) Applicable rules.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) of this paragraph, any amount paid to 
                a State under this part that is used to carry out a 
                State program pursuant to a provision of law specified 
                in paragraph (1) shall not be subject to the 
                requirements of this part, but shall be subject to the 
                requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program, and the expenditure of any amount so used 
                shall not be considered to be an expenditure under this 
                part.
                    ``(B) Funds transferred to the wioa.--In the case 
                of funds transferred under paragraph (1)(B) of this 
                subsection--
                            ``(i) all of the funds will be used to 
                        support families eligible for assistance under 
                        the State program funded under this part; and
                            ``(ii) not more than 15 percent of the 
                        funds will be reserved for statewide workforce 
                        investment activities referred to in section 
                        128(a)(1) of the Workforce Innovation and 
                        Opportunity Act.
            ``(4) Exclusion of states excluding the state tanf program 
        as a mandatory one-stop partner under the wioa.--The authority 
        provided by this subsection may not be exercised by a State 
        that has provided the notification referred to in section 
        407(a)(3)(D).''.

SEC. 8. TARGETING FUNDS TO CORE PURPOSES.

    (a) Requirement That States Reserve 25 Percent of Grant for 
Spending on Core Activities.--Section 408(a) (42 U.S.C. 608(a)) is 
amended by adding at the end the following:
            ``(13) Requirement that states reserve 25 percent of grant 
        for spending on core activities.--A State to which a grant is 
        made under section 403(a)(1) for a fiscal year shall expend not 
        less than 25 percent of the grant on assistance, case 
        management, work supports and supportive services, work, wage 
        subsidies, work activities (as defined in section 407(d)), and 
        non-recurring short-term benefits.''.
    (b) Requirement That at Least 25 Percent of Qualified State 
Expenditures Be for Core Activities.--Section 408(a) (42 U.S.C. 
608(a)), as amended by subsection (a) of this section, is amended by 
adding at the end the following:
            ``(14) Requirement that at least 25 percent of qualified 
        state expenditures be for core activities.--Not less than 25 
        percent of the qualified State expenditures (as defined in 
        section 409(a)(7)(B)(i)) of a State during the fiscal year 
        shall be for assistance, case management, work supports and 
        supportive services, work, wage subsidies, work activities (as 
        defined in section 407(d)), and non-recurring short-term 
        benefits.''.
    (c) Phase-Out of Counting of Third-Party Contributions as Qualified 
State Expenditures.--Section 408(a) (42 U.S.C. 608(a)), as amended by 
subsections (a) and (b) of this section, is amended by adding at the 
end the following:
            ``(15) Phase-out of counting of third-party contributions 
        as qualified state expenditures.--
                    ``(A) In general.--The qualified State expenditures 
                (as defined in section 409(a)(7)(B)(i)) of a State for 
                a fiscal year that are attributable to the value of 
                goods and services provided by a source other than a 
                State or local government shall not exceed the 
                applicable percentage of the expenditures for the 
                fiscal year.
                    ``(B) Applicable percentage.--In subparagraph (A), 
                the term `applicable percentage' means, with respect to 
                a fiscal year--
                            ``(i) 75 percent, in the case of fiscal 
                        year 2020;
                            ``(ii) 50 percent, in the case of fiscal 
                        year 2021;
                            ``(iii) 25 percent, in the case of fiscal 
                        year 2022; and
                            ``(iv) 0 percent, in the case of fiscal 
                        year 2023 or any succeeding fiscal year.''.

SEC. 9. PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS TO REPLACE 
              STATE SPENDING.

    Section 408(a) (42 U.S.C. 608(a)), as amended by section 8 of this 
Act, is amended by adding at the end the following:
            ``(16) Non-supplantation requirement.--Funds made available 
        to a State under this part shall be used to supplement, not 
        supplant, State general revenue spending on activities 
        described in section 404.''.

SEC. 10. INCLUSION OF POVERTY REDUCTION AS A PROGRAM PURPOSE.

    Section 401(a) (42 U.S.C. 601(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) reduce child poverty by increasing employment entry, 
        retention, and advancement of needy parents.''.

SEC. 11. DEFINITIONS RELATED TO USE OF FUNDS.

    Section 419 (42 U.S.C. 619), as amended by section 6(d)(2), is 
further amended by adding at the end the following:
            ``(7) Assistance.--The term `assistance' means cash, 
        payments, vouchers, and other forms of benefits designed to 
        meet a family's ongoing basic needs (such as for food, 
        clothing, shelter, utilities, household goods, personal care 
        items, and general incidental expenses).
            ``(8) Work supports.--The term `work supports' means 
        assistance and non-assistance transportation benefits (such as 
        the value of allowances, bus tokens, car payments, auto repair, 
        auto insurance reimbursement, and van services provided in 
        order to help families obtain, retain, or advance in 
        employment, participate in work activities (as defined in 
        section 407(d)), or as a non-recurrent, short-term benefit, 
        including goods provided to individuals in order to help them 
        obtain or maintain employment (such as tools, uniforms, fees to 
        obtain special licenses, bonuses, incentives, and work support 
        allowances and expenditures for job access).
            ``(9) Supportive services.--The term `supportive services' 
        means services such as domestic violence services, and mental 
        health, substance abuse and disability services, housing 
        counseling services, and other family supports, except to the 
        extent that the provision of the service would violate section 
        408(a)(6).
            ``(10) TANF benefit.--The term `TANF benefit' means--
                    ``(A) assistance; or
                    ``(B) wage subsidies that are paid, with funds 
                provided under section 403(a) or with qualified State 
                expenditures, with respect to a person who--
                            ``(i) was a work-eligible individual (as 
                        defined in the regulations promulgated pursuant 
                        to section 407(i)(1)(A)(i)) at the time of 
                        entry into subsidized employment, such as on-
                        the-job training or apprenticeship; and
                            ``(ii) is not receiving assistance.''.

SEC. 12. INCREASING FUNDING FOR CHILD CARE.

    (a) In General.--Section 403 (42 U.S.C. 603) is amended by striking 
all of subsection (b) except paragraph (5).
    (b) Conforming Amendments.--
            (1) Transfer of needy state definition.--
                    (A) In general.--Paragraph (5) of section 403(b) 
                (42 U.S.C. 603(b)(5)) is--
                            (i) amended--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``paragraph (4)'' and inserting 
                                ``subparagraph (C)'';
                                    (II) in each of subparagraphs (A) 
                                and (B), by redesignating clauses (i) 
                                and (ii) as subclauses (I) and (II), 
                                respectively;
                                    (III) by redesignating 
                                subparagraphs (A) and (B) as clauses 
                                (i) and (ii), respectively;
                                    (IV) by redesignating such 
                                paragraph as subparagraph (D); and
                                    (V) by moving each provision 2 ems 
                                to the right; and
                            (ii) as so amended, hereby transferred into 
                        section 409(a)(3) (42 U.S.C. 609(a)(3)) and 
                        added to the end of such section.
                    (B) Conforming amendment.--Section 409(a)(3)(C) (42 
                U.S.C. 609(a)(3)(C)) is amended by striking ``(as 
                defined in section 403(b)(5))''.
            (2) Elimination of penalty for failure of state receiving 
        amounts from contingency fund to maintain 100 percent of 
        historic effort.--Section 409(a) (42 U.S.C. 609(a)) is amended 
        by striking paragraph (10) and inserting the following:
            ``(10) [Repealed].''.

SEC. 13. EFFECTIVE DATE.

    The amendments made by this Act shall take effect as if enacted on 
October 1, 2018.
                                 <all>