II 118th CONGRESS 1st Session S. 1188 IN THE SENATE OF THE UNITED STATES April 18, 2023 Mr. Lee (for himself and Mr. Scott of Florida ) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To help individuals receiving assistance under the supplemental nutrition assistance program in obtaining self-sufficiency, to provide information on total spending on means-tested welfare programs, and for other purposes.

1. Short title This Act may be cited as the SNAP Reform and Upward Mobility Act of 2023 . 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I—Poverty measurement improvement Sec. 101. Improving the measurement of poverty in the United States. Sec. 102. Commission on valuation of government benefits. Sec. 103. GAO reports on effect of supplementary data on calculation of poverty rates and related measures. Sec. 104. Rule of construction. TITLE II—Modifications to supplemental nutrition assistance program Sec. 201. Work requirements. Sec. 202. Employment and training program outcomes reporting. Sec. 203. State matching funds. Sec. 204. Eligibility. Sec. 205. Compliance with fraud investigations. Sec. 206. Authorized users of electronic benefit transfer cards. Sec. 207. Reauthorization of medium- or high-risk retail food stores and wholesale food concerns. Sec. 208. State activity reports. Sec. 209. Disqualification by State agency. Sec. 210. Retention of recaptured funds by States. I Poverty measurement improvement 101. Improving the measurement of poverty in the United States (a) Definitions In this section: (1) Federal benefit The term Federal benefit means a benefit, refundable tax credit, or other form of assistance provided under any of the following programs: (A) Earned Income Tax Credit (refundable portion). (B) Child Tax Credit (refundable portion). (C) Supplemental Security Income. (D) Temporary Assistance for Needy Families. (E) Title IV–E Foster Care. (F) Title IV–E Adoption Assistance. (G) Medicaid. (H) SCHIP. (I) Indian Health Services. (J) PPACA refundable premium assistance and cost sharing tax credit. (K) Assets for Independence program. (L) Supplemental Nutrition Assistance Food Program. (M) School Breakfast. (N) School Lunch. (O) Women, Infants, and Children (WIC) Food Program. (P) Child and Adult Care Food Program. (Q) The Food Distribution Program on Indian Reservations (FDPIR). (R) Nutrition Program for the Elderly. (S) Seniors Farmers’ Market Nutrition Program. (T) Commodity Supplemental Food Program. (U) Section 8 Housing. (V) Public Housing. (W) Housing for Persons with Disabilities. (X) Home Investment Partnership Program. (Y) Rural Housing Service. (Z) Rural Housing Insurance Fund. (AA) Low-Income Home Energy Assistance Program. (BB) Universal Service Fund Low Income Support Mechanism (subsidized phone services). (CC) Pell Grants. (DD) Supplemental Educational Opportunity Grants. (EE) American Opportunity Tax Credit (refundable portion). (FF) Healthy Start. (GG) Job Corps. (HH) Head Start (including Early Head Start). (II) Weatherization Assistance. (JJ) Chafee Foster Care Independence Program. (KK) Child Care Subsidies from the Child Care and Development Fund. (LL) Child Care from the Temporary Assistance for Needy Families Block Grant. (MM) Emergency Assistance to Needy Families with Children. (NN) Senior Community Service Employment Program. (OO) Migrant and Seasonal Farm Workers Training Program. (PP) Indian and Native American Employment and Training Program. (QQ) Independent Living Education and Training Vouchers. (2) Resource unit The term resource unit means all co-resident individuals who are related by birth, marriage, or adoption, plus any co-resident unrelated children, foster children, and unmarried partners and their relatives. (3) Market income The term market income means individual income from the following: (A) Earnings. (B) Interest. (C) Dividends. (D) Rents, royalties, and estates and trusts. (E) The monetary value of employer-sponsored health insurance benefits. (F) Other forms of income, as determined by the Director. (4) Entitlement and other income The term entitlement and other income means income from the following: (A) Unemployment (insurance) compensation. (B) Workers’ compensation. (C) Social Security. (D) Veterans’ payments and benefits. (E) Survivor benefits. (F) Disability benefits (not including benefits under the Supplemental Security Income program). (G) Pension or retirement income. (H) Alimony. (I) Child support. (J) Financial assistance from outside of the household. (K) Medicare. (5) Entitlement and earned unit income The term entitlement and earned unit income means the sum of all market income and entitlement and other income. (6) Income tax data The term income tax data means return information, as such term is defined under section 6103(b)(2) of the Internal Revenue Code of 1986. (7) Administering agency The term administering agency means a State or Federal agency responsible for administering a Federal benefit. (8) Total resource unit income The term total resource unit income means, with respect to a resource unit, an amount equal to— (A) the sum of— (i) all market income attributable to members of the unit; (ii) all entitlement and other income attributable to members of the unit; and (iii) an amount, or cash equivalent, of all Federal benefits received by members of the unit; minus (B) all State and Federal income and payroll taxes attributable to members of the unit. (9) Earned resource unit income The term earned resource unit income means, with respect to a resource unit, all market income attributable to members of the unit. (10) Personally identifiable information The term personally identifiable information means any information that identifies an individual or could reasonably be used to identify an individual that is— (A) collected pursuant to a survey conducted by the Bureau of the Census; or (B) disclosed to the Bureau of the Census by an administering agency for the purpose of carrying out subsection (b). (11) Director The term Director means the Director of the Bureau of the Census. (b) Verification of data collected in the Annual Social and Economic Supplement to the Current Population Survey (1) In general Beginning in fiscal year 2024, in order to more accurately determine the extent of poverty in the United States and the anti-poverty effectiveness of Federal benefit programs, the Director shall collect, in addition to the data collected under the Annual Social and Economic Supplement to the Current Population Survey, data from the appropriate administering agencies related to the following: (A) Participation in any Federal benefit program and the monetary or cash equivalent value of such benefit for an individual, where possible, and otherwise for resource units or households. (B) The total amount of market income for individuals. (C) The total amount of entitlement and other income for individuals. (D) Payment of income taxes and payroll taxes for individuals. (E) Total resource unit income. (F) Total earned resource unit income. (G) Any other information about benefits or income received by individuals that the Director determines necessary to carry out this section and that is not included in the data relating to participation in Federal benefit programs or market income for individuals. (2) Administering agency data Not later than 6 months after receiving a request from the Director, the head of each administering agency shall make available to the Director such data (including income tax data) as the Director shall require for the purpose of carrying out this subsection and for the purposes outlined in section 6 of title 13, United States Code. (3) Publication of data (A) Rates and other data (i) Report The Director shall submit to Congress, not later than January 1, 2025, a report detailing the implementation of this section, including— (I) the availability of related data; (II) the quality of the data; and (III) the methodology proposed for assigning dollar values to the receipt of noncash Federal benefits. (ii) Tables and graphs The Director shall produce tables and graphs showing for each year the poverty rates and related data calculated using data collected under paragraph (1), including— (I) the total resource unit income for survey respondents; (II) the total earned resource unit income for survey respondents; (III) the total of all amounts described in subparagraphs (A) through (G) of paragraph (1) that are received by survey respondents; (IV) a breakdown of the amount of income taxes and payroll taxes attributable to survey respondents; and (V) for 2027 and subsequent years, poverty rates calculated using updated poverty thresholds as described in clause (iii). (iii) Updated poverty thresholds For 2027 and subsequent years, the Director shall, in addition to the official poverty line (as defined by the Office of Management and Budget) and the supplemental poverty measure, provide an alternative poverty measure that uses the personal consumption expenditure price index (as published by the Bureau of Economic Analysis) and accounts for the data collected under paragraph (1). The Director shall provide a comparison of the official poverty line (as defined by the Office of Management and Budget), the supplemental poverty measure rate as defined by the Bureau of the Census, and the alternative poverty rate created using the alternative poverty measure under this section. (iv) Rule of construction The Office of Management and Budget shall not use the additional data collected by the Director pursuant to paragraph (1) for purposes of defining the official poverty line. (B) Confidentiality Consistent with the provisions of sections 8, 9, and 23(c) of title 13, United States Code, the Director shall ensure the confidentiality of information furnished to the Director under this subsection. (c) Protection and disclosure of personally identifiable information (1) In general The security, disclosure, and confidentiality provisions set forth in sections 9 and 23 of title 13, United States Code, shall apply to personally identifiable information obtained by the Bureau of the Census pursuant to this section. (2) Restricted access to personally identifiable information Access to personally identifiable information collected to supplement the restricted-use Current Population Survey Annual Social and Economic Supplements in accordance with subsection (b)(1) shall be available only to those who have access to the Current Population Survey data with the permission of the Bureau of the Census and in accordance with any other applicable provision of law. (3) Penalties Any individual who knowingly accesses or discloses personally identifiable information in violation of this section shall be guilty of a felony and upon conviction thereof shall be fined in an amount of not more than $300,000 under title 18, United States Code, or imprisoned for not more than five years, or both. (d) State reporting of Federal data Beginning with the first full calendar year that begins after the date of enactment of this Act, with respect to any Federal benefit that is administered at the State level by a State administering agency, such State administering agency shall submit each year to the Federal administering agency responsible for administering the benefit at the Federal level a report that identifies each resource unit that received such benefits during such year by the personally identifiable information of the head of the resource unit and the amount, or cash equivalent, of such benefit received by such resource unit. 102. Commission on valuation of government benefits (a) Establishment There is established within the United States Census Bureau a commission, to be known as the Commission on Valuation of Federal Benefits (referred to in this section as the Commission ). (b) Composition (1) In general The Commission shall be composed of 8 members, of whom— (A) 2 members shall be appointed by the majority leader of the Senate; (B) 2 members shall be appointed by the minority leader of the Senate; (C) 2 members shall be appointed by the Speaker of the House of Representatives; and (D) 2 members shall be appointed by the minority leader of the House of Representatives. (2) Co-chairs Of the members of the Commission— (A) 1 co-chair shall be designated by the majority leader of the Senate; and (B) 1 co-chair shall be designated by the Speaker of the House of Representatives. (3) Qualifications Each member appointed to the Commission shall have experience in— (A) quantitative policy research; and (B) welfare or poverty studies. (c) Initial meeting Not later than 60 days after the date on which the last member is appointed under subsection (b), the Commission shall hold an initial meeting. (d) Quorum Six members of the Commission shall constitute a quorum. (e) No proxy voting Proxy voting by members of the Commission shall be prohibited. (f) Staff The Director of the Census Bureau shall appoint an executive director of the Commission. (g) Travel expenses Members of the Commission shall serve without pay, but shall receive travel expenses in accordance with sections 5702 and 5703 of title 5, United States Code. (h) Duties of commission (1) Recommendations (A) In general The Commission shall produce recommendations for the valuation of Federal benefits listed under section 101(a)(1) for the purpose of United States Census Bureau estimates of the Federal Poverty Level, including non-cash benefits. (2) Report (A) In general Not later than 270 days after the date of enactment of this Act, the Commission shall submit to Congress a report of the recommendations required under paragraph (1), including a detailed statement of methodology and reasoning behind recommendations. (B) Public availability The report required by subparagraph (A) shall be made available on an internet website of the United States Government that is available to the public. (i) Powers of commission On request by the executive director of the Commission, the head of a Federal agency shall furnish information to the Commission. (j) Termination of commission The Commission shall terminate 90 days after the date on which the Commission submits the report under subsection (h)(2). (k) Authorization of appropriations There is authorized to be appropriated $1,000,000 to carry out this section. 103. GAO reports on effect of supplementary data on calculation of poverty rates and related measures Not later than January 1, 2028, and every 2 years thereafter, the Comptroller General of the United States shall submit to Congress a report that compares the poverty rates and related measures calculated under the Annual Social and Economic Supplement to the Current Population Survey with the poverty rates and related measures calculated using the data collected under section 101(b)(1). 104. Rule of construction Nothing in this title shall be construed to affect the eligibility of an individual or household for a Federal benefit. II Modifications to supplemental nutrition assistance program 201. Work requirements (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) Definition of food Section 3(k) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012(k) ) is amended by striking means (1) and inserting means the following foods, food products, meals, and other items, only if the food, food product, meal, or other item is essential, as determined by the Secretary: (1) . (c) General work requirements Section 6(d)(1)(A) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015(d)(1)(A) ) is amended, in the matter preceding clause (i), by striking 60 and inserting 65 . (d) Hour-Based work requirement Section 6(o) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015(o) ) is amended— (1) in paragraph (1)(C), by striking other than a supervised job search program or job search training program and inserting including an in-person supervised job search program ; (2) in paragraph (3)— (A) in subparagraph (A), by striking 50 and inserting 64 ; (B) by striking subparagraph (C); and (C) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively; (3) in paragraph (4)(A)— (A) in the matter preceding clause (i), by striking area and inserting county or county equivalent ; (B) in clause (i), by striking or and inserting and ; and (C) by striking clause (ii) and inserting the following: (ii) is not located within a labor market area, as determined by data published by the Bureau of Labor Statistics, that has an unemployment rate of over 10 percent. ; (4) in paragraph (6)(D), by striking 15 percent and inserting 5 percent ; (5) by redesignating paragraph (7) as paragraph (8); (6) by inserting after paragraph (6) the following: (7) Work or work preparation hours requirement for married couples with children The total combined number of hours of work or work preparation activities under subparagraphs (A), (B), and (C) of paragraph (2) for both spouses in a married couple household with 1 or more children over the age of 6 shall not be greater than the total number of hours required under those subparagraphs for a single head of household. ; and (7) by inserting after paragraph (8) (as so redesignated) the following: (9) Minimum wage rule The limitation under subsection (d)(4)(F)(i) shall not apply to any work requirement, program, or activity required under this subsection. . 202. Employment and training program outcomes reporting Not later than 1 year after the date of enactment of this Act, the Secretary of Agriculture shall submit to Congress a report, using data from the most recent 5 fiscal years available, detailing the outcomes of beneficiaries of the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ) (referred to in this section as SNAP ) who participate in employment and training programs (as defined in section 6(d)(4)(B) of that Act ( 7 U.S.C. 2015(d)(4)(B) )) for each of those 5 years that includes the following information: (1) The number and percentage of SNAP beneficiaries in each State who participated in an employment and training program compared to the number and percentage of SNAP beneficiaries in each State who did not participate in an employment and training program. (2) The number and percentage of SNAP beneficiaries in each State who obtained a job while participating in an employment and training program compared to the number and percentage of SNAP beneficiaries in each State who obtained a job but did not participate in an employment and training program. (3) The number and percentage of SNAP beneficiaries in each State who retained a job for 6 months, 1 year, and 5 years after completing an employment and training program and obtaining a job compared to the number and percentage of SNAP beneficiaries in each State who retained a job for 6 months, 1 year, and 5 years but did not complete an employment and training program prior to obtaining that job. (4) The increase or decrease in wages, if applicable, for SNAP beneficiaries in each State who retained a job for 6 months, 1 year, and 5 years after completing an employment and training program and obtaining a job compared to the increase or decrease in wages, if applicable, for SNAP beneficiaries in each State who retained a job for 6 months, 1 year, and 5 years but did not complete an employment and training program prior to obtaining that job. (5) The number and percentage of SNAP beneficiaries who— (A) previously participated in an employment and training program; (B) after that participation, obtained a job or stopped receiving SNAP benefits; and (C) after regaining eligibility for SNAP benefits, reentered an employment or training program. (6) The average duration that SNAP beneficiaries in each State participated in an employment and training program. (7) A breakdown of— (A) the types of employment and training activities offered by the employment and training program of each State; and (B) the types of jobs that States are preparing employment and training program participants to obtain. 203. State matching funds Section 4 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2013 ) is amended by adding at the end the following: (d) State matching funds (1) In general Each State that participates in the supplemental nutrition assistance program shall, as a condition of participation, be required to contribute matching funds in an amount equal to, of the funds received from the Secretary by the State for program administration— (A) for fiscal year 2023, 10 percent; (B) for fiscal year 2024, 15 percent; (C) for fiscal year 2025, 20 percent; (D) for fiscal year 2026, 25 percent; (E) for fiscal year 2027, 30 percent; (F) for fiscal year 2028, 35 percent; (G) for fiscal year 2029, 40 percent; (H) for fiscal year 2030, 45 percent; and (I) for fiscal year 2031 and each fiscal year thereafter, 50 percent. (2) Additional contributions permitted Nothing in this subsection prevents a State from contributing matching funds in an amount greater than the amount required under paragraph (1) for the applicable fiscal year. . 204. Eligibility Section 5(a) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2014(a) ) is amended— (1) in the second sentence, by inserting that are limited to families whose income and resources satisfy financial need criteria established in accordance with subsections (c) and (g) by the State for receipt of the benefits after ( 42 U.S.C. 601 et seq. ) ; and (2) by inserting after the second sentence the following: To be deemed eligible for participation in the supplemental nutrition assistance program under this subsection, a household shall receive a cash or noncash means-tested public benefit for at least 6 consecutive months valued at not less than $50. . 205. Compliance with fraud investigations Section 6(d) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015(d) ) is amended by adding at the end the following: (5) Compliance with fraud investigations To be eligible to participate in the supplemental nutrition assistance program, an individual shall cooperate with any investigation into fraud under that program, including full participation in any— (A) meeting requested by fraud investigators; and (B) administrative hearing. . 206. Authorized users of electronic benefit transfer cards Section 7(h) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2016(h) ) is amended by adding at the end the following: (15) Authorized users (A) In general A State agency shall register— (i) at least 1 member of a household issued an EBT card as an authorized user of the card; and (ii) an authorized representative of a household as an authorized user of the EBT card issued to the household. (B) Limit Not more than 5 individuals shall be registered as authorized users, including the authorized representative of a household, on an EBT card. (C) Unauthorized use (i) In general An EBT card shall not be used by any individual who is not an authorized user of the EBT card. (ii) 2 unauthorized uses If an EBT card has been used 2 times by an unauthorized user of the EBT card, the head of the household to which the EBT card is issued shall be required to review program rights and responsibilities with personnel of the State agency. (iii) 4 unauthorized uses If an EBT card has been used 4 times by an unauthorized user of the EBT card, the State agency shall suspend benefits for the household to which the EBT card is issued for 1 month. (iv) 6 unauthorized uses If an EBT card has been used 6 times by an unauthorized user of the EBT card, the State agency shall suspend benefits for the household to which the EBT card is issued for 3 months. (v) 7 or more unauthorized uses If an EBT card has been used 7 or more times by an unauthorized user of the EBT card, the State agency shall suspend benefits for the household to which the EBT card is issued for 1 month per unauthorized use. (vi) Administration Any action taken under clauses (ii) through (v) shall be consistent with sections 6(b) and 11(e)(10), as applicable. . 207. Reauthorization of medium- or high-risk retail food stores and wholesale food concerns Section 9(a)(2)(A) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2018(a)(2)(A) ) is amended by striking ; and and inserting , which, in the case of a retail food store or wholesale food concern for which there is a medium risk or high risk of fraudulent transactions, as determined by the fraud detection system of the Food and Nutrition Service, shall be annually; and . 208. State activity reports Section 11 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2020 ) is amended by adding at the end the following: (y) State activity reports The Secretary shall publish for each fiscal year a report describing the activity of each State in the supplemental nutrition assistance program, which shall contain, for the applicable fiscal year, substantially the same information as is contained in the report published by the Food and Nutrition Service entitled Supplemental Nutrition Assistance Program State Activity Report Fiscal Year 2016 and published September 2017. . 209. Disqualification by State agency Section 12 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2021 ) is amended by adding at the end the following: (j) Disqualification by State agency (1) In general Except as provided in paragraph (4), a State agency shall permanently disqualify from participation in the supplemental nutrition assistance program an approved retail food store or wholesale food concern convicted of— (A) trafficking in food instruments (including any voucher, draft, check, or access device (including an electronic benefit transfer card or personal identification number) issued in lieu of a food instrument under this Act); or (B) selling firearms, ammunition, explosives, or controlled substances (as defined in section 102 of the Controlled Substances Act ( 21 U.S.C. 802 )) in exchange for food instruments (including any item described in subparagraph (A) issued in lieu of a food instrument under this Act). (2) Notice of disqualification The State agency shall— (A) provide the approved retail food store or wholesale food concern with notification of the disqualification; and (B) make the disqualification effective on the date of receipt of the notice of disqualification. (3) Prohibition of receipt of lost revenues A retail food store or wholesale food concern shall not be entitled to receive any compensation for revenues lost as a result of disqualification under this subsection. (4) Exceptions in lieu of disqualification (A) In general A State agency may permit a retail food store or wholesale food concern that, but for this paragraph, would be disqualified under paragraph (1), to continue to participate in the supplemental nutrition assistance program if the State agency determines, in its sole discretion, that— (i) disqualification of the retail food store or wholesale food concern, as applicable, would cause hardship to participants in the supplemental nutrition assistance program; or (ii) (I) the retail food store or wholesale food concern had, at the time of the violation under paragraph (1), an effective policy and program in effect to prevent violations described in paragraph (1); and (II) the ownership of the retail food store or wholesale food concern was not aware of, did not approve of, and was not involved in the conduct of the violation. (B) Civil penalty If a State agency under subparagraph (A) permits a retail food store or wholesale food concern to continue to participate in the supplemental nutrition assistance program in lieu of disqualification, the State agency shall assess a civil penalty in an amount determined by the State agency, except that— (i) the amount of the civil penalty shall not exceed $10,000 for each violation; and (ii) the amount of civil penalties imposed for violations investigated as part of a single investigation may not exceed $40,000. (C) Reporting (i) To the Secretary If a State agency under subparagraph (A) permits a retail food store or wholesale food concern to continue to participate in the supplemental nutrition assistance program in lieu of disqualification, the State agency shall annually submit to the Secretary a report describing the justification of the State agency for that action. (ii) To Congress The Secretary shall annually submit to Congress a report compiling the information contained in reports submitted to the Secretary under clause (i). . 210. Retention of recaptured funds by States Section 16(a) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2025(a) ) is amended— (1) in the second sentence, by striking The officials and inserting the following: (3) Prohibition The officials ; (2) in the first sentence— (A) by redesignating paragraphs (1) through (9) as subparagraphs (A) through (I), respectively; and (B) by striking section 17(n): Provided, That the Secretary and inserting the following: “section 17(n). (2) Administration on Indian reservations and in Native villages (A) In general The Secretary ; (3) in paragraph (2) (as so designated)— (A) in subparagraph (A), by striking 35 percent and inserting 50 percent ; and (B) by adding at the end the following: (B) Use of retained amounts for fraud investigations The value of funds or allotments recovered or collected pursuant to sections 6(b) and 13(c) that are retained by a State under subparagraph (A) in excess of 35 percent shall be used by the State for investigations of fraud in the supplemental nutrition assistance program. ; and (4) by striking the subsection designation and all that follows through Subject to in the matter preceding paragraph (2) (as so designated) and inserting the following: (a) Administrative cost-Sharing (1) In general Subject to .