[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2873 Enrolled Bill (ENR)]

        H.R.2873

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
             the third day of January, two thousand and one


                                 An Act


 
   To extend and amend the program entitled Promoting Safe and Stable 
Families under title IV-B, subpart 2 of the Social Security Act, and to 
  provide new authority to support programs for mentoring children of 
   incarcerated parents; to amend the Foster Care Independent Living 
  program under title IV-E of that Act to provide for educational and 
  training vouchers for youths aging out of foster care, 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 ``Promoting Safe and Stable Families 
Amendments of 2001''.

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.

               TITLE I--PROMOTING SAFE AND STABLE FAMILIES

   Subtitle A--Grants to States for Promoting Safe and Stable Families

Sec. 101. Findings and purpose.
Sec. 102. Definition of family support services.
Sec. 103. Reallotments.
Sec. 104. Payments to States.
Sec. 105. Evaluations, research, and technical assistance.
Sec. 106. Authorization of appropriations; reservation of certain 
          amounts.
Sec. 107. State court improvements.

               Subtitle B--Mentoring Children of Prisoners

Sec. 121. Program authorized.

              TITLE II--FOSTER CARE AND INDEPENDENT LIVING

Sec. 201. Educational and training vouchers for youths aging out of 
          foster care.
Sec. 202. Reallocation and extension of funds.

                        TITLE III--EFFECTIVE DATE

Sec. 301. Effective date.

SEC. 3. REFERENCES.

    Except as otherwise specified in this Act, an amendment made by 
this Act to a section or other provision shall be considered an 
amendment to the section or other provision of the Social Security Act.

              TITLE I--PROMOTING SAFE AND STABLE FAMILIES
  Subtitle A--Grants to States for Promoting Safe and Stable Families

SEC. 101. FINDINGS AND PURPOSE.

    Section 430 (42 U.S.C. 629) is amended to read as follows:

``SEC. 430. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds that there is a continuing 
urgent need to protect children and to strengthen families as 
demonstrated by the following:
        ``(1) Family support programs directed at specific vulnerable 
    populations have had positive effects on parents, children, or 
    both. The vulnerable populations for which programs have been shown 
    to be effective include teenage mothers with very young children 
    and families that have children with special needs.
        ``(2) Family preservation programs have been shown to provide 
    extensive and intensive services to families in crisis.
        ``(3) The time lines established by the Adoption and Safe 
    Families Act of 1997 have made the prompt availability of services 
    to address family problems (and in particular the prompt 
    availability of appropriate services and treatment addressing 
    substance abuse) an important factor in successful family 
    reunification.
        ``(4) The rapid increases in the annual number of adoptions 
    since the enactment of the Adoption and Safe Families Act of 1997 
    have created a growing need for postadoption services and for 
    service providers with the particular knowledge and skills required 
    to address the unique issues adoptive families and children may 
    face.
    ``(b) Purpose.--The purpose of this program is to enable States to 
develop and establish, or expand, and to operate coordinated programs 
of community-based family support services, family preservation 
services, time-limited family reunification services, and adoption 
promotion and support services to accomplish the following objectives:
        ``(1) To prevent child maltreatment among families at risk 
    through the provision of supportive family services.
        ``(2) To assure children's safety within the home and preserve 
    intact families in which children have been maltreated, when the 
    family's problems can be addressed effectively.
        ``(3) To address the problems of families whose children have 
    been placed in foster care so that reunification may occur in a 
    safe and stable manner in accordance with the Adoption and Safe 
    Families Act of 1997.
        ``(4) To support adoptive families by providing support 
    services as necessary so that they can make a lifetime commitment 
    to their children.''.

SEC. 102. DEFINITIONS.

    (a) Inclusion of Infant Safe Haven Programs Among Family 
Preservation Services.--Section 431(a)(1) (42 U.S.C. 629a(a)(1)) is 
amended--
        (1) by striking ``and'' at the end of subparagraph (D);
        (2) by striking the period at the end of subparagraph (E) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
            ``(F) infant safe haven programs to provide a way for a 
        parent to safely relinquish a newborn infant at a safe haven 
        designated pursuant to a State law.''.
    (b) Family Support Services.--Section 431(a)(2) (42 U.S.C. 
629a(a)(2)) is amended by inserting ``to strengthen parental 
relationships and promote healthy marriages,'' after ``environment,''.

SEC. 103. REALLOTMENTS.

    Section 433 (42 U.S.C. 629c) is amended by adding at the end the 
following:
    ``(d) Reallotments.--The amount of any allotment to a State under 
this section for any fiscal year that the State certifies to the 
Secretary will not be required for carrying out the State plan under 
section 432 shall be available for reallotment using the allotment 
methodology specified in this section. Any amount so reallotted to a 
State is deemed part of the allotment of the State under the preceding 
provisions of this section.''.

SEC. 104. PAYMENTS TO STATES.

    (a) In General.--Section 434(a) (42 U.S.C. 629d(a)) is amended--
        (1) by striking paragraph (2);
        (2) by striking all that precedes subparagraph (A) of paragraph 
    (1) and inserting the following:
    ``(a) Entitlement.--Each State that has a plan approved under 
section 432 shall be entitled to payment of the lesser of--''; and
        (3) by redesignating subparagraphs (A) and (B) of paragraph (1) 
    as paragraphs (1) and (2), respectively, and by indenting the 
    provisions 2 ems to the left.
    (b) Conforming Amendments.--Section 434(b) (42 U.S.C. 629d(b)) is 
amended--
        (1) in paragraph (1)--
            (A) by striking ``paragraph (1) or (2)(B) of''; and
            (B) by striking ``described in this subpart'' and inserting 
        ``under the State plan under section 432''; and
        (2) in paragraph (2), by striking ``subsection (a)(1)'' and 
    inserting ``subsection (a)''.

SEC. 105. EVALUATIONS, RESEARCH, AND TECHNICAL ASSISTANCE.

    Section 435 (42 U.S.C. 629e) is amended--
        (1) by striking all that precedes ``the effectiveness'' in 
    paragraph (1) of subsection (a), including the heading for section 
    435 and the caption for subsection (a), and inserting the 
    following:

``SEC. 435. EVALUATIONS; RESEARCH; TECHNICAL ASSISTANCE.

    ``(a) Evaluations.--
        ``(1) In general.--The Secretary shall evaluate and report to 
    the Congress biennially on'';
        (2) by adding at the end of subsection (a) the following:
        ``(3) Timing of report.--Beginning in 2003, the Secretary shall 
    submit the biennial report required by this subsection not later 
    than April 1 of every other year, and shall include in each such 
    report the funding level, the status of ongoing evaluations, 
    findings to date, and the nature of any technical assistance 
    provided to States under subsection (d).''; and
        (3) by adding at the end the following:
    ``(c) Research.--The Secretary shall give priority consideration to 
the following topics for research and evaluation under this subsection, 
using rigorous evaluation methodologies where feasible:
        ``(1) Promising program models in the service categories 
    specified in section 430(b), particularly time-limited 
    reunification services and postadoption services.
        ``(2) Multi-disciplinary service models designed to address 
    parental substance abuse and to reduce its impacts on children.
        ``(3) The efficacy of approaches directed at families with 
    specific problems and with children of specific age ranges.
        ``(4) The outcomes of adoptions finalized after enactment of 
    the Adoption and Safe Families Act of 1997.
    ``(d) Technical Assistance.--To the extent funds are available 
therefor, the Secretary shall provide technical assistance that helps 
States and Indian tribes to--
        ``(1) develop research-based protocols for identifying families 
    at risk of abuse and neglect of use in the field;
        ``(2) develop treatment models that address the needs of 
    families at risk, particularly families with substance abuse 
    issues;
        ``(3) implement programs with well-articulated theories of how 
    the intervention will result in desired changes among families at 
    risk;
        ``(4) establish mechanisms to ensure that service provision 
    matches the treatment model; and
        ``(5) establish mechanisms to ensure that postadoption services 
    meet the needs of the individual families and develop models to 
    reduce the disruption rates of adoption.''.

SEC. 106. AUTHORIZATION OF APPROPRIATIONS; RESERVATION OF CERTAIN 
              AMOUNTS.

    (a) Mandatory Funding.--
        (1) In general.--Subpart 2 of part B of title IV (42 U.S.C. 
    629-629e) is amended by adding at the end the following:

``SEC. 436. AUTHORIZATION OF APPROPRIATIONS; RESERVATION OF CERTAIN 
              AMOUNTS.

    ``(a) Authorization.--There are authorized to be appropriated to 
carry out the provisions of this subpart $305,000,000 for each of 
fiscal years 2002 through 2006.
    ``(b) Reservation of Certain Amounts.--From the amount specified in 
subsection (a) for a fiscal year, the Secretary shall reserve amounts 
as follows:
        ``(1) Evaluation, research, training, and technical 
    assistance.--The Secretary shall reserve $6,000,000 for expenditure 
    by the Secretary--
            ``(A) for research, training, and technical assistance 
        costs related to the program under this subpart; and
            ``(B) for evaluation of State programs based on the plans 
        approved under section 432 and funded under this subpart, and 
        any other Federal, State, or local program, regardless of 
        whether federally assisted, that is designed to achieve the 
        same purposes as the State programs.
        ``(2) State court improvements.--The Secretary shall reserve 
    $10,000,000 for grants under section 438.
        ``(3) Indian tribes.--The Secretary shall reserve 1 percent for 
    allotment to Indian tribes in accordance with section 433(a).''.
        (2) Conforming amendments.--Section 433 (42 U.S.C. 629c) is 
    amended--
            (A) in subsection (a), by striking ``section 430(d)(3)'' 
        and inserting ``section 436(b)(3)'';
            (B) in subsection (b)--
                (i) by striking ``section 430(b)'' and inserting 
            ``section 436(a)''; and
                (ii) by striking ``section 430(d)'' and inserting 
            ``section 436(b)''; and
            (C) in subsection (c)(1)--
                (i) by striking ``section 430(b)'' and inserting 
            ``section 436(a)''; and
                (ii) by striking ``section 430(d)'' and inserting 
            ``section 436(b)''.
    (b) Discretionary Funding.--Subpart 2 of part B of title IV (42 
U.S.C. 629-629e) is further amended by adding at the end the following:

``SEC. 437. DISCRETIONARY GRANTS.

    ``(a) Limitations on Authorization of Appropriations.--In addition 
to any amount appropriated pursuant to section 436, there are 
authorized to be appropriated to carry out this section $200,000,000 
for each of fiscal years 2002 through 2006.
    ``(b) Reservation of Certain Amounts.--From the amount (if any) 
appropriated pursuant to subsection (a) for a fiscal year, the 
Secretary shall reserve amounts as follows:
        ``(1) Evaluation, research, training, and technical 
    assistance.--The Secretary shall reserve 3.3 percent for 
    expenditure by the Secretary for the activities described in 
    section 436(b)(1).
        ``(2) State court improvements.--The Secretary shall reserve 
    3.3 percent for grants under section 438.
        ``(3) Indian tribes.--The Secretary shall reserve 2 percent for 
    allotment to Indian tribes in accordance with subsection (c)(1).
    ``(c) Allotments.--
        ``(1) Indian tribes.--From the amount (if any) reserved 
    pursuant to subsection (b)(3) for any fiscal year, the Secretary 
    shall allot to each Indian tribe with a plan approved under this 
    subpart an amount that bears the same ratio to such reserved amount 
    as the number of children in the Indian tribe bears to the total 
    number of children in all Indian tribes with State plans so 
    approved, as determined by the Secretary on the basis of the most 
    current and reliable information available to the Secretary.
        ``(2) Territories.--From the amount (if any) appropriated 
    pursuant to subsection (a) for any fiscal year that remains after 
    applying subection (b) for the fiscal year, the Secretary shall 
    allot to each of the jurisdictions of Puerto Rico, Guam, the Virgin 
    Islands, the Northern Mariana Islands, and American Samoa an amount 
    determined in the same manner as the allotment to each of such 
    jurisdictions is determined under section 421.
        ``(3) Other states.--From the amount (if any) appropriated 
    pursuant to subsection (a) for any fiscal year that remains after 
    applying subsection (b) and paragraph (2) of this subsection for 
    the fiscal year, the Secretary shall allot to each State (other 
    than an Indian tribe) which is not specified in paragraph (2) of 
    this subsection an amount equal to such remaining amount multiplied 
    by the food stamp percentage (as defined in section 433(c)(2)) of 
    the State for the fiscal year.
    ``(d) Grants.--The Secretary may make a grant to a State which has 
a plan approved under this subpart in an amount equal to the lesser 
of--
        ``(1) 75 percent of the total expenditures by the State for 
    activities under the plan during the fiscal year or the immediately 
    succeeding fiscal year; or
        ``(2) the allotment of the State under subsection (c) for the 
    fiscal year.
    ``(e) Applicability of Certain Rules.--The rules of subsections (b) 
and (c) of section 434 shall apply in like manner to the amounts made 
available pursuant to this section.''.

SEC. 107. STATE COURT IMPROVEMENTS.

    (a) Scope of Activities.--Section 13712 of the Omnibus Budget 
Reconciliation Act of 1993 (42 U.S.C. 670 note) is amended--
        (1) in subsection (a), by striking paragraph (2) and inserting 
    the following:
        ``(2) to implement improvements the highest state courts deem 
    necessary as a result of the assessments, including--
            ``(A) to provide for the safety, well-being, and permanence 
        of children in foster care, as set forth in the Adoption and 
        Safe Families Act of 1997 (Public Law 105-89); and
            ``(B) to implement a corrective action plan, as necessary, 
        resulting from reviews of child and family service programs 
        under section 1123A of this Act.''; and
        (2) in subsection (c)(1), in the matter preceding subparagraph 
    (A), by inserting ``and improvement'' after ``assessment''.
    (b) Allotments.--Section 13712(c)(1) of such Act (42 U.S.C. 670 
note) is amended by striking all that follows ``shall be entitled to 
payment,'' and inserting ``for each of fiscal years 2002 through 2006, 
from the amount reserved pursuant to section 436(b)(2) (and the amount, 
if any, reserved pursuant to section 437(b)(2)), of an amount equal to 
the sum of $85,000 plus the amount described in paragraph (2) of this 
subsection for the fiscal year.''.
    (c) Federal Share.--Section 13712(d) of such Act (42 U.S.C. 670 
note) is amended--
        (1) in the heading, by striking ``Use of Grant Funds'' and 
    inserting ``Federal Share''; and
        (2) by striking ``to pay--'' and all that follows and inserting 
    ``to pay not more than 75 percent of the cost of activities under 
    this section in each of fiscal years 2002 through 2006.''.
    (d) Conforming Amendments.--Section 13712 of such Act (42 U.S.C. 
670 note) is amended--
        (1) in subsection (a)--
            (A) in the matter preceding paragraph (1), by striking ``of 
        title IV of the Social Security Act''; and
            (B) in paragraph (1)(A), by striking ``of title IV of such 
        Act''; and
        (2) in subsection (c)(2), by striking ``section 430(d)(2) of 
    the Social Security Act'' and inserting ``section 436(b)(2) (and 
    the amount, if any, reserved pursuant to section 437(b)(2))''.
    (e) Transfer and Redesignation.--Section 13712 of such Act (42 
U.S.C. 670 note), as amended by the preceding provisions of this 
section, is redesignated as section 438 and is transferred to the end 
of subpart 2 of part B of title IV of the Social Security Act.

              Subtitle B--Mentoring Children of Prisoners

SEC. 121. PROGRAM AUTHORIZED.

    Subpart 2 of part B of title IV (42 U.S.C. 629-629e) is further 
amended by adding at the end the following:

``SEC. 439. GRANTS FOR PROGRAMS FOR MENTORING CHILDREN OF PRISONERS.

    ``(a) Findings and Purpose.--
        ``(1) Findings.--
            ``(A) In the period between 1991 and 1999, the number of 
        children with a parent incarcerated in a Federal or State 
        correctional facility increased by more than 100 percent, from 
        approximately 900,000 to approximately 2,000,000. In 1999, 2.1 
        percent of all children in the United States had a parent in 
        Federal or State prison.
            ``(B) Prior to incarceration, 64 percent of female 
        prisoners and 44 percent of male prisoners in State facilities 
        lived with their children.
            ``(C) Nearly 90 percent of the children of incarcerated 
        fathers live with their mothers, and 79 percent of the children 
        of incarcerated mothers live with a grandparent or other 
        relative.
            ``(D) Parental arrest and confinement lead to stress, 
        trauma, stigmatization, and separation problems for children. 
        These problems are coupled with existing problems that include 
        poverty, violence, parental substance abuse, high-crime 
        environments, intrafamilial abuse, child abuse and neglect, 
        multiple care givers, and/or prior separations. As a result, 
        these children often exhibit a broad variety of behavioral, 
        emotional, health, and educational problems that are often 
        compounded by the pain of separation.
            ``(E) Empirical research demonstrates that mentoring is a 
        potent force for improving children's behavior across all risk 
        behaviors affecting health. Quality, one-on-one relationships 
        that provide young people with caring role models for future 
        success have profound, life-changing potential. Done right, 
        mentoring markedly advances youths' life prospects. A widely 
        cited 1995 study by Public/Private Ventures measured the impact 
        of one Big Brothers Big Sisters program and found significant 
        effects in the lives of youth--cutting first-time drug use by 
        almost half and first-time alcohol use by about a third, 
        reducing school absenteeism by half, cutting assaultive 
        behavior by a third, improving parental and peer relationships, 
        giving youth greater confidence in their school work, and 
        improving academic performance.
        ``(2) Purpose.--The purpose of this section is to authorize the 
    Secretary to make competitive grants to applicants in areas with 
    substantial numbers of children of incarcerated parents, to support 
    the establishment or expansion and operation of programs using a 
    network of public and private community entities to provide 
    mentoring services for children of prisoners.
    ``(b) Definitions.--In this section:
        ``(1) Children of prisoners.--The term `children of prisoners' 
    means children one or both of whose parents are incarcerated in a 
    Federal, State, or local correctional facility. The term is deemed 
    to include children who are in an ongoing mentoring relationship in 
    a program under this section at the time of their parents' release 
    from prison, for purposes of continued participation in the 
    program.
        ``(2) Mentoring.--The term `mentoring' means a structured, 
    managed program in which children are appropriately matched with 
    screened and trained adult volunteers for one-on-one relationships, 
    involving meetings and activities on a regular basis, intended to 
    meet, in part, the child's need for involvement with a caring and 
    supportive adult who provides a positive role model.
        ``(3) Mentoring services.--The term `mentoring services' means 
    those services and activities that support a structured, managed 
    program of mentoring, including the management by trained personnel 
    of outreach to, and screening of, eligible children; outreach to, 
    education and training of, and liaison with sponsoring local 
    organizations; screening and training of adult volunteers; matching 
    of children with suitable adult volunteer mentors; support and 
    oversight of the mentoring relationship; and establishment of goals 
    and evaluation of outcomes for mentored children.
    ``(c) Program Authorized.--From the amounts appropriated under 
subsection (h) for a fiscal year that remain after applying subsection 
(h)(2), the Secretary shall make grants under this section for each of 
fiscal years 2002 through 2006 to State or local governments, tribal 
governments or tribal consortia, faith-based organizations, and 
community-based organizations in areas that have significant numbers of 
children of prisoners and that submit applications meeting the 
requirements of this section, in amounts that do not exceed $5,000,000 
per grant.
    ``(d) Application Requirements.--In order to be eligible for a 
grant under this section, the chief executive officer of the applicant 
must submit to the Secretary an application containing the following:
        ``(1) Program design.--A description of the proposed program, 
    including--
            ``(A) a list of local public and private organizations and 
        entities that will participate in the mentoring network;
            ``(B) the name, description, and qualifications of the 
        entity that will coordinate and oversee the activities of the 
        mentoring network;
            ``(C) the number of mentor-child matches proposed to be 
        established and maintained annually under the program;
            ``(D) such information as the Secretary may require 
        concerning the methods to be used to recruit, screen support, 
        and oversee individuals participating as mentors, (which 
        methods shall include criminal background checks on the 
        individuals), and to evaluate outcomes for participating 
        children, including information necessary to demonstrate 
        compliance with requirements established by the Secretary for 
        the program; and
            ``(E) such other information as the Secretary may require.
        ``(2) Community consultation; coordination with other 
    programs.--A demonstration that, in developing and implementing the 
    program, the applicant will, to the extent feasible and 
    appropriate--
            ``(A) consult with public and private community entities, 
        including religious organizations, and including, as 
        appropriate, Indian tribal organizations and urban Indian 
        organizations, and with family members of potential clients;
            ``(B) coordinate the programs and activities under the 
        program with other Federal, State, and local programs serving 
        children and youth; and
            ``(C) consult with appropriate Federal, State, and local 
        corrections, workforce development, and substance abuse and 
        mental health agencies.
        ``(3) Equal access for local service providers.--An assurance 
    that public and private entities and community organizations, 
    including religious organizations and Indian organizations, will be 
    eligible to participate on an equal basis.
        ``(4) Records, reports, and audits.--An agreement that the 
    applicant will maintain such records, make such reports, and 
    cooperate with such reviews or audits as the Secretary may find 
    necessary for purposes of oversight of project activities and 
    expenditures.
        ``(5) Evaluation.--An agreement that the applicant will 
    cooperate fully with the Secretary's ongoing and final evaluation 
    of the program under the plan, by means including providing the 
    Secretary access to the program and program-related records and 
    documents, staff, and grantees receiving funding under the plan.
    ``(e) Federal Share.--
        ``(1) In general.--A grant for a program under this section 
    shall be available to pay a percentage share of the costs of the 
    program up to--
            ``(A) 75 percent for the first and second fiscal years for 
        which the grant is awarded; and
            ``(B) 50 percent for the third and each succeeding such 
        fiscal years.
        ``(2) Non-federal share.--The non-Federal share of the cost of 
    projects under this section may be in cash or in kind. In 
    determining the amount of the non-Federal share, the Secretary may 
    attribute fair market value to goods, services, and facilities 
    contributed from non-Federal sources.
    ``(f) Considerations in Awarding Grants.--In awarding grants under 
this section, the Secretary shall take into consideration--
        ``(1) the qualifications and capacity of applicants and 
    networks of organizations to effectively carry out a mentoring 
    program under this section;
        ``(2) the comparative severity of need for mentoring services 
    in local areas, taking into consideration data on the numbers of 
    children (and in particular of low-income children) with an 
    incarcerated parents (or parents) in the areas;
        ``(3) evidence of consultation with existing youth and family 
    service programs, as appropriate; and
        ``(4) any other factors the Secretary may deem significant with 
    respect to the need for or the potential success of carrying out a 
    mentoring program under this section.
    ``(g) Evaluation.--The Secretary shall conduct an evaluation of the 
programs conducted pursuant to this section, and submit to the Congress 
not later than April 15, 2005, a report on the findings of the 
evaluation.
    ``(h) Authorization of Appropriations; Reservation of Certain 
Amounts.--
        ``(1) Authorization.--There are authorized to be appropriated 
    to carry out this section $67,000,000 for each of fiscal years 2002 
    and 2003, and such sums as may be necessary for each succeeding 
    fiscal year.
        ``(2) Reservation.--The Secretary shall reserve 2.5 percent of 
    the amount appropriated for each fiscal year under paragraph (1) 
    for expenditure by the Secretary for research, technical 
    assistance, and evaluation related to programs under this 
    section.''.

              TITLE II--FOSTER CARE AND INDEPENDENT LIVING

SEC. 201. EDUCATIONAL AND TRAINING VOUCHERS FOR YOUTHS AGING OUT OF 
              FOSTER CARE.

    (a) Purpose.--Section 477(a) (42 U.S.C. 677(a)) is amended--
        (1) by striking ``and'' at the end of paragraph (4);
        (2) by striking the period at the end of paragraph (5) and 
    inserting ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(6) to make available vouchers for education and training, 
    including postsecondary training and education, to youths who have 
    aged out of foster care.''.
    (b) Educational and Training Vouchers.--Section 477 (42 U.S.C. 677) 
is amended by adding at the end the following:
    ``(i) Educational and Training Vouchers.--The following conditions 
shall apply to a State educational and training voucher program under 
this section:
        ``(1) Vouchers under the program may be available to youths 
    otherwise eligible for services under the State program under this 
    section.
        ``(2) For purposes of the voucher program, youths adopted from 
    foster care after attaining age 16 may be considered to be youths 
    otherwise eligible for services under the State program under this 
    section.
        ``(3) The State may allow youths participating in the voucher 
    program on the date they attain 21 years of age to remain eligible 
    until they attain 23 years of age, as long as they are enrolled in 
    a postsecondary education or training program and are making 
    satisfactory progress toward completion of that program.
        ``(4) The voucher or vouchers provided for an individual under 
    this section--
            ``(A) may be available for the cost of attendance at an 
        institution of higher education, as defined in section 102 of 
        the Higher Education Act of 1965; and
            ``(B) shall not exceed the lesser of $5,000 per year or the 
        total cost of attendance, as defined in section 472 of that 
        Act.
        ``(5) The amount of a voucher under this section may be 
    disregarded for purposes of determining the recipient's eligibility 
    for, or the amount of, any other Federal or Federally supported 
    assistance, except that the total amount of educational assistance 
    to a youth under this section and under other Federal and Federally 
    supported programs shall not exceed the total cost of attendance, 
    as defined in section 472 of the Higher Education Act of 1965, and 
    except that the State agency shall take appropriate steps to 
    prevent duplication of benefits under this and other Federal or 
    Federally supported programs.
        ``(6) The program is coordinated with other appropriate 
    education and training programs.''.
    (c) Certification.--Section 477(b)(3) (42 U.S.C. 677(b)(3)) is 
amended by adding at the end the following:
            ``(J) A certification by the chief executive officer of the 
        State that the State educational and training voucher program 
        under this section is in compliance with the conditions 
        specified in subsection (i), including a statement describing 
        methods the State will use--
                ``(i) to ensure that the total amount of educational 
            assistance to a youth under this section and under other 
            Federal and Federally supported programs does not exceed 
            the limitation specified in subsection (i)(5); and
                ``(ii) to avoid duplication of benefits under this and 
            any other Federal or Federally assisted benefit program.''.
    (d) Increased Authorizations of Appropriations.--Section 477(h) (42 
U.S.C. 677(h)) is amended by striking ``there are authorized'' and all 
that follows and inserting the following: ``there are authorized to be 
appropriated to the Secretary for each fiscal year--
        ``(1) $140,000,000, which shall be available for all purposes 
    under this section; and
        ``(2) an additional $60,000,000, which are authorized to be 
    available for payments to States for education and training 
    vouchers for youths who age out of foster care, to assist the 
    youths to develop skills necessary to lead independent and 
    productive lives.''.
    (e) Allotments to States.--Section 477(c) (42 U.S.C. 677(c)) is 
amended--
        (1) in paragraph (1)--
            (A) by striking ``(1) In general.--From the amount 
        specified in subsection (h)'' and inserting ``(1) General 
        program allotment.--From the amount specified in subsection 
        (h)(1)'';
            (B) by striking ``which bears the same ratio'' and 
        inserting ``which bears the ratio''; and
            (C) by striking ``as the number of children in foster 
        care'' and all that follows and inserting ``equal to the State 
        foster care ratio, as adjusted in accordance with paragraph 
        (2).''; and
        (2) by adding at the end the following new paragraphs:
        ``(3) Voucher program allotment.--From the amount, if any, 
    appropriated pursuant to subsection (h)(2) for a fiscal year, the 
    Secretary may allot to each State with an application approved 
    under subsection (b) for the fiscal year an amount equal to the 
    State foster care ratio multiplied by the amount so specified.
        ``(4) State foster care ratio.--In this subsection, the term 
    `State foster care ratio' means the ratio of the number of children 
    in foster care under a program of the State in the most recent 
    fiscal year for which the information is available to the total 
    number of children in foster care in all States for the most recent 
    fiscal year.''.
    (f) Payments to States.--
        (1) In general.--Section 474(a)(4) (42 U.S.C. 674(a)(4)) is 
    amended to read as follows:
        ``(4) an amount equal to the amount (if any) by which--
            ``(A) the lesser of--
                ``(i) 80 percent of the amounts expended by the State 
            during the fiscal year in which the quarter occurs to carry 
            out programs in accordance with the State application 
            approved under section 477(b) for the period in which the 
            quarter occurs (including any amendment that meets the 
            requirements of section 477(b)(5)); or
                ``(ii) the amount allotted to the State under section 
            477(c)(1) for the fiscal year in which the quarter occurs, 
            reduced by the total of the amounts payable to the State 
            under this paragraph for all prior quarters in the fiscal 
            year; exceeds
            ``(B) the total amount of any penalties assessed against 
        the State under section 477(e) during the fiscal year in which 
        the quarter occurs.''.
        (2) Discretionary grants.--Section 474 (42 U.S.C. 674) is 
    amended by adding at the end the following:
    ``(e) Discretionary Grants for Educational and Training Vouchers 
for Youths Aging out of Foster Care.--From amounts appropriated 
pursuant to section 477(h)(2), the Secretary may make a grant to a 
State with a plan approved under this part, for a calendar quarter, in 
an amount equal to the lesser of--
        ``(1) 80 percent of the amounts expended by the State during 
    the quarter to carry out programs for the purposes described in 
    section 477(a)(6); or
        ``(2) the amount, if any, allotted to the State under section 
    477(c)(3) for the fiscal year in which the quarter occurs, reduced 
    by the total of the amounts payable to the State under this 
    subsection for such purposes for all prior quarters in the fiscal 
    year.''.

SEC. 202. REALLOCATION AND EXTENSION OF FUNDS.

    (a) Reallocation of Unused Funds.--Section 477(d) (42 U.S.C. 
677(d)) is amended by adding at the end the following:
        ``(4) Reallocation of unused funds.--If a State does not apply 
    for funds under this section for a fiscal year within such time as 
    may be provided by the Secretary, the funds to which the State 
    would be entitled for the fiscal year shall be reallocated to 1 or 
    more other States on the basis of their relative need for 
    additional payments under this section, as determined by the 
    Secretary.''.
    (b) Temporary Extension of Availability of Independent Living 
Funds.--Notwithstanding section 477(d)(3) of the Social Security Act, 
payments made to a State under section 477 of such Act for fiscal year 
2000 shall remain available for expenditure by the State through fiscal 
year 2002.

                       TITLE III--EFFECTIVE DATE

SEC. 301. EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), the amendments made by 
this Act shall take effect on the date of the enactment of this Act.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan under subpart 2 of part B or part E of the Social Security 
Act that the Secretary of Health and Human Services determines requires 
State legislation (other than legislation appropriating funds) in order 
for the plan to meet the additional requirements imposed by the 
amendments specified in subsection (a) of this section, the State plan 
shall not be regarded as failing to comply with the requirements of 
such part solely on the basis of the failure of the plan to meet the 
additional requirements before the first day of the first calendar 
quarter beginning after the close of the first regular session of the 
State legislature that begins after the date of the enactment of this 
Act. For purposes of the preceding sentence, in the case of a State 
that has a 2-year legislative session, each year of the session shall 
be deemed to be a separate regular session of the State legislature.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.