[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1443 Introduced in Senate (IS)]






108th CONGRESS
  1st Session
                                S. 1443

 To amend part A of title IV of the Social Security Act to reauthorize 
   the temporary assistance to needy families program, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 22 (legislative day, July 21), 2003

   Mr. Carper (for himself, Mr. Nelson of Nebraska, and Ms. Collins) 
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 to reauthorize 
   the temporary assistance to needy families program, 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 ``Building on Welfare Success Act of 
2003''.

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. Findings.
                             TITLE I--WORK

Sec. 101. Increase in minimum participation rates.
Sec. 102. Increase in number of hours required for work and work-
                            related activities.
Sec. 103. Treatment of rehabilitative services as an additional work 
                            activity.
Sec. 104. Education and training.
Sec. 105. Authority to establish parents as scholars programs.
Sec. 106. Replacement of caseload reduction credit with employment 
                            credit.
Sec. 107. Elimination of separate work participation rate for 2-parent 
                            families.
Sec. 108. State option to count a caregiver of a family member with a 
                            disability or chronic illness as engaged in 
                            work.
                 TITLE II--FAMILY PROMOTION AND SUPPORT

 Subtitle A--Family Formation Fund and Teen Pregnancy Prevention Grants

Sec. 201. Promotion of family formation.
Sec. 202. Ban on imposition of stricter eligibility criteria for 2-
                            parent families.
Sec. 203. Teen pregnancy prevention grants.
Sec. 204. Teen pregnancy prevention resource center.
Sec. 205. Establishing national goals to prevent teen pregnancy.
        Subtitle B--Child Support Distribution to Families First

                Chapter 1--Distribution of Child Support

Sec. 211. Distribution of child support collected by States on behalf 
                            of children receiving certain welfare 
                            benefits.
                    Chapter 2--Expanded Enforcement

Sec. 221. Decrease in amount of child support arrearage triggering 
                            passport denial.
Sec. 222. Use of tax refund intercept program to collect past-due child 
                            support on behalf of children who are not 
                            minors.
Sec. 223. Garnishment of compensation paid to veterans for service-
                            connected disabilities in order to enforce 
                            child support obligations.
Sec. 224. Mandatory review and adjustment of child support orders for 
                            families receiving TANF.
Sec. 225. Improved interstate enforcement.
                        Chapter 3--Miscellaneous

Sec. 231. Report on undistributed child support payments.
Sec. 232. Use of new hire information to assist in administration of 
                            unemployment compensation programs.
Sec. 233. Immigration provisions.
Sec. 234. Increase in payment rate to States for expenditures for 
                            short-term training of staff of certain 
                            child welfare agencies.
                   Subtitle C--Responsible Fatherhood

Sec. 241. Responsible fatherhood grants.
Sec. 242. National clearinghouse for responsible fatherhood programs.
Sec. 243. Block grants to States to encourage media campaigns.
                      TITLE III--STATE FLEXIBILITY

Sec. 301. State option to assist legal immigrant families.
Sec. 302. Optional coverage of legal immigrants under the medicaid 
                            program and title XXI.
Sec. 303. 5-year extension and simplification of the transitional 
                            medical assistance program (TMA).
Sec. 304. Definition of assistance.
Sec. 305. Clarification of authority of States to use TANF funds 
                            carried over from prior years to provide 
                            TANF benefits and services.
Sec. 306. Authority to use TANF funds for housing benefits.
                 TITLE IV--RESOURCES AND ACCOUNTABILITY

Sec. 401. Reauthorization of State family assistance grants.
Sec. 402. Reauthorization of supplemental grants for population 
                            increases.
Sec. 403. Contingency fund.
Sec. 404. Child care.
Sec. 405. Restoration of funding for the social services block grant.
Sec. 406. Competitive grants for public-private partnerships for 
                            educational opportunities for career 
                            advancement.
Sec. 407. Grants to improve access to transportation.
Sec. 408. Pathway to self-sufficiency grants to improve coordination of 
                            assistance for low-income families.
Sec. 409. Transitional jobs programs.
Sec. 410. GAO study on impact of ban on SSI benefits for legal 
                            immigrants.
Sec. 411. Ensuring TANF funds are not used to displace public 
                            employees; application of workplace laws to 
                            welfare recipients.
Sec. 412. Data collection and reporting.
                         TITLE V--MISCELLANEOUS

Sec. 501. 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 amendment or repeal shall be 
considered to be made to a section or other provision of the Social 
Security Act.

SEC. 4. FINDINGS.

    Congress makes the following findings:
            (1) The Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 2105) 
        was a fundamental change to reform the Federal welfare system 
        to shift it from an entitlement program into a transition 
        program to help families move from welfare to work and personal 
        responsibility.
            (2) Since enactment of the 1996 welfare reform law, welfare 
        cash assistance caseloads have dropped dramatically, by 
        approximately 50 percent, and approximately \2/3\ of welfare 
        recipients who have left the cash assistance rolls have left 
        for work.
            (3) Another sign of reform and progress is that funding has 
        shifted from providing monthly cash assistance for parents to 
        stay at home to over \1/2\ of the funding targeted to pay for 
        work supports, such as child care, transportation, job 
        placement, limited job training, or other priorities.
            (4) Investments in child care and transportation, and 
        health care access will help continue this success and move 
        more people from welfare to work.
            (5) While many families have moved from welfare to work, 
        many families struggle in low-wage jobs and have trouble 
        getting promised supports such as medicaid, child care, food 
        stamps, and other supports available under programs intended to 
        help families.
            (6) Child poverty rates in the United States have improved 
        but they could be lower and they remain high when compared to 
        the rates of other developed countries. More must be done to 
        reduce child poverty in our Nation.
            (7) State flexibility has been critical to the success of 
        the 1996 welfare reform law and will be important for States to 
        provide a broad range of services to address parents on welfare 
        with barriers to employment. State flexibility also is 
        important for States to continue successful welfare programs 
        that have cut the caseload in half since 1996.
            (8) Children deserve to be raised in supportive homes, 
        preferably with 2 loving parents. It is crucial to end policies 
        that discriminate against serving 2-parent families within the 
        welfare system. It is also important to support innovative 
        programs to encourage full participation in child support and 
        child rearing by noncustodial parents.
            (9) Despite declining national and State rates, 35 percent 
        of girls in the United States get pregnant at least once by age 
        20, nearly 900,000 girls get pregnant each year, and there are 
        nearly 500,000 teen births each year. The national teen birth 
        rate for Hispanic teen girls--the fastest growing group--is 
        declining the slowest.
            (10) If teen birth rates had stayed at the 1991 peak level, 
        there would have been at least 800,000 additional babies born 
        to teenagers.

                             TITLE I--WORK

SEC. 101. INCREASE IN MINIMUM PARTICIPATION RATES.

    The table set forth in section 407(a)(1) (42 U.S.C. 607(a)(1)) is 
amended--
            (1) in the item relating to fiscal year 2002--
                    (A) by striking ``or thereafter'' and inserting 
                ``2003, or 2004''; and
                    (B) by striking the period; and
            (2) by adding at the end the following:

                        ``2005.......................             55   
                         2006........................             60   
                         2007........................             65   
                         2008 or thereafter..........          70.''.  

SEC. 102. INCREASE IN NUMBER OF HOURS REQUIRED FOR WORK AND WORK-
              RELATED ACTIVITIES.

    Section 407(c)(1) (42 U.S.C. 607(c)(1)), as amended by section 
107(3), is amended--
            (1) in the matter preceding the table set forth in that 
        paragraph, by striking ``20 hours'' and inserting ``24 hours''; 
        and
            (2) in the table--
                    (A) in the item relating to fiscal year 2000, by 
                striking ``or thereafter'' and inserting ``, 2001, 
                2002, or 2003'';
                    (B) by striking the period at the end; and
                    (C) by adding at the end the following:

                         2004 or thereafter..........          32.''.  

SEC. 103. TREATMENT OF REHABILITATIVE SERVICES AS AN ADDITIONAL WORK 
              ACTIVITY.

    (a) In General.--Section 407(d) (42 U.S.C. 607(d)) is amended--
            (1) in paragraph (11), by striking ``and'' at the end;
            (2) in paragraph (12), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(13)(A) rehabilitative services, such as adult basic 
        education, participation in a program designed to increase 
        proficiency in the English language, or, in the case of an 
        individual determined by a qualified medical, mental health, or 
        social services professional as having a physical or mental 
        disability, substance abuse problem, or other problem that 
        requires rehabilitative services, substance abuse treatment, 
        mental health treatment, or other rehabilitative services, 
        provided that the provision of such services is a requirement 
        of the individual's individual responsibility plan under 
        section 408(b) (not to exceed 3 months out of any 24-month 
        period, or, if such services for a longer period of time is a 
        requirement of the individual's plan under section 408(b), up 
        to 6 months, but only if, during the last 3 months of such 6 
        months, such services are combined with work or job-readiness 
        activities); and
            ``(B) for purposes of counting toward the minimum average 
        number of hours per week specified in subsection (c)(1), 
        services described in subparagraph (A), the provision of which 
        is a requirement of the individual's individual responsibility 
        plan under section 408(b), until an individual successfully 
        completes such services (and without regard to the time limits 
        for the receipt of such services for purposes of subparagraph 
        (A)).''.
    (b) Conforming Amendments.--Section 407(c)(1) (42 U.S.C. 
607(c)(1)), as amended by sections 102 and 107(3), is amended by 
striking ``or (12)'' and inserting ``(12), or (13)(A)''.

SEC. 104. EDUCATION AND TRAINING.

    (a) Increase in Months for Vocational Educational Training To Count 
as a Work Activity.--Section 407(d)(8) is amended to read as follows:
            ``(8) vocational educational training (not to exceed 24 
        months with respect to any individual);''.
    (b) State Option To Treat Participants in Postsecondary Education 
Program Established by the State as Engaged in Work.--Section 407(c)(2) 
(42 U.S.C. 607(c)(2)) is amended by adding at the end the following:
                    ``(E) State option to treat participants in 
                postsecondary education program established by the 
                State as engaged in work.--In the case of a State that 
                elects to establish a postsecondary education program 
                under section 404(l), the State may include, for 
                purposes of determining monthly participation rates 
                under subsection (b)(1)(B)(i), all families that 
                include an individual participating in such program 
                during the month as being engaged in work for the 
                month, so long as each such individual is in compliance 
                with the requirements of that program.''.
    (c) Elimination of Recipients Completing Secondary School From 
Limit on Number of TANF Recipients Participating in Vocational 
Educational Training.--
            (1) In general.--Section 407(c)(2)(D) (42 U.S.C. 
        607(c)(2)(D)) is amended to read as follows:
                    ``(D) Limitation on number of persons who may be 
                treated as engaged in work by reason of participation 
                in vocational educational training.--For purposes of 
                determining monthly participation rates under 
                subsection (b)(1)(B)(i), not more than 30 percent of 
                the number of individuals in all families in a State 
                who are treated as engaged in work for a month may 
                consist of individuals who are determined to be engaged 
                in work for the month by reason of participation in 
                vocational educational training (determined without 
                regard to individuals described in subparagraph (C) or 
                participating in a program referred to in subparagraph 
                (E)).''.
            (2) Conforming amendment.--Section 407(c)(2)(C)(ii) (42 
        U.S.C. 607(c)(2)(C)(ii) is amended by inserting ``including 
        vocational educational training'' after ``employment''.

SEC. 105. AUTHORITY TO ESTABLISH PARENTS AS SCHOLARS PROGRAMS.

    Section 404 (42 U.S.C. 604) is amended by adding at the end the 
following:
    ``(l) Authority To Establish Parents as Scholars Programs.--
            ``(1) In general.--A State to which a grant is made under 
        section 403 may use the grant to establish a parents as 
        scholars program under which an eligible participant may be 
        provided support services described in paragraph (4) based on 
        the participant's need in order to complete the program.
            ``(2) Definition of eligible participant.--
                    ``(A) In general.--In this subsection, the term 
                `eligible participant' means an individual who receives 
                assistance under the State program funded under this 
                part and satisfies the following requirements:
                            ``(i) The individual is enrolled as a full-
                        time student in a postsecondary 2- or 4-year 
                        degree program.
                            ``(ii) The individual does not have a 
                        marketable bachelor's degree.
                            ``(iii) The individual does not have the 
                        skills necessary to earn at least 85 percent of 
                        the median wage for the State or locality in 
                        which the individual resides.
                            ``(iv) The individual is--
                                    ``(I) pursuing a degree that will 
                                improve the individual's ability to 
                                support the individual's family, 
                                considering the local labor market and 
                                employment opportunities; and
                                    ``(II) demonstrating an ability to 
                                succeed in the educational program that 
                                has been chosen.
                            ``(v) The individual participates in a 
                        combination of education, training, study or 
                        worksite experience for an average of not less 
                        than 20 hours per week (including time spent 
                        studying at 150 percent of time spent in 
                        class).
                            ``(vi) After the first 24 months of 
                        participation in the program, the individual--
                                    ``(I) works not less than 15 hours 
                                per week (in addition to school and 
                                study time); or
                                    ``(II) engages in a combination of 
                                class hours, study hours (including 
                                time spent studying at 150 percent of 
                                time spent in class) and work for a 
                                total of not less than 32 hours per 
                                week.
                            ``(vii) During the period the individual 
                        participates in the program, the individual--
                                    ``(I) maintains not less than a 2.0 
                                grade point average;
                                    ``(II) attends classes as 
                                scheduled;
                                    ``(III) reports to the individual's 
                                caseworker for the program any changes 
                                that might affect the individual's 
                                participation;
                                    ``(IV) provides the individual's 
                                caseworker with a copy of any financial 
                                aid award letters; and
                                    ``(V) provides the individual's 
                                caseworker with the individual's 
                                semester grades as requested.
                    ``(B) Definition of full-time student.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A)(i), an individual shall be 
                        considered a full-time student if such 
                        individual is taking courses having the number 
                        of hours needed under the requirements of the 
                        educational institution in which the individual 
                        is enrolled, to complete the requirements of a 
                        degree within the usual timeframe of 2 or 4 
                        years, as applicable.
                            ``(ii) Exception.--The State may, for good 
                        cause, modify the number of hours required 
                        under clause (i) to allow additional time, not 
                        to exceed 150 percent of the usual timeframe 
                        required for completion of a 2- or 4-year 
                        degree, for an individual to complete a degree 
                        and be considered a full-time student under a 
                        program established under this subsection.
            ``(3) Modification of eligible participant requirements.--A 
        State may, for good cause, modify the requirements for an 
        eligible participant set forth in paragraph (2)(A).
            ``(4) Support services described.--For purposes of 
        paragraph (1), the support services described in this paragraph 
        include 1 or more of the following during the period the 
        eligible participant is in the program established under this 
        subsection:
                    ``(A) Child care for children under age 13 or for 
                children who are physically or mentally incapable of 
                caring for themselves.
                    ``(B) Transportation services, including--
                            ``(i) mileage at a set rate per mile or 
                        reimbursement for public or private 
                        transportation;
                            ``(ii) payment for automotive repairs, not 
                        to exceed $500 per academic year on a vehicle 
                        registered to the eligible participant; and
                            ``(iii) reimbursement for vehicle liability 
                        insurance, not to exceed $300, for the eligible 
                        participant's vehicle.
                    ``(C) Payment for books and supplies to the extent 
                that such items are not covered by grants and loans, 
                not to exceed $750 per academic year.
                    ``(D) Such other expenses, not to exceed $500, that 
                the State determines are necessary for the eligible 
                participant to complete the program established under 
                this subsection and that are not covered by any other 
                available support services program.''.

SEC. 106. REPLACEMENT OF CASELOAD REDUCTION CREDIT WITH EMPLOYMENT 
              CREDIT.

    (a) Employment Credit To Reward States in Which Families Leave 
Welfare for Work; Additional Credit for Families With Higher 
Earnings.--
            (1) In general.--Section 407(b) (42 U.S.C. 607(b)), as 
        amended by section 107(2)(A), is amended by inserting after 
        paragraph (1) the following:
            ``(2) Employment credit.--
                    ``(A) In general.--The participation rate 
                determined under paragraph (1) of a State for a fiscal 
                year shall be increased by the lesser of--
                            ``(i) the number of percentage points (if 
                        any) of the employment credit for the State for 
                        the fiscal year; or
                            ``(ii) the number of percentage points (if 
                        any) by which the participation rate, so 
                        determined, is less than 100 percent.
                    ``(B) Calculation of credit.--
                            ``(i) In general.--The employment credit 
                        for a State for a fiscal year is an amount 
                        equal to--
                                    ``(I) twice the average quarterly 
                                number of families with an adult that 
                                ceased to receive assistance under the 
                                State program funded under this part 
                                during the preceding fiscal year (but 
                                only if the adult did not receive such 
                                assistance for at least 2 months after 
                                the cessation) and that was employed 
                                during the calendar quarter immediately 
                                succeeding the quarter in which the 
                                payments ceased; divided by
                                    ``(II) the average monthly number 
                                of families that include an adult who 
                                received cash payments under the State 
                                program funded under this part during 
                                the preceding fiscal year.
                            ``(ii) Special rule for former recipients 
                        with higher earnings.--In calculating the 
                        employment credit for a State for a fiscal 
                        year, a family that, in the quarter in which 
                        the wage was examined, earned at least 50 
                        percent of the average quarterly wage in the 
                        State (determined on the basis of State 
                        unemployment data) shall be considered to be 
                        1.5 families.
                    ``(C) Regulations.--The Secretary may prescribe 
                such regulations as may be necessary to carry out this 
                paragraph.
                    ``(D) Reports on amount of credit.--Not later than 
                6 months after the end of each calendar quarter, the 
                Secretary shall report to Congress and each State the 
                amount of the employment credit for the State for the 
                quarter. The Secretary may carry out this subparagraph 
                using funds made available under this part for 
                research.''.
            (2) Authority of secretary to use information in national 
        directory of new hires.--Section 453(i) (42 U.S.C. 653(i)) is 
        amended by adding at the end the following:
            ``(5) Calculation of employment credit for purposes of 
        determining state work participation rates under tanf.--The 
        Secretary may use the information in the National Directory of 
        New Hires for purposes of calculating State employment credits 
        pursuant to section 407(b)(2).''.
            (3) Elimination of caseload reduction credit.--Section 
        407(b), as amended by paragraph (1) and section 107(2)(A), is 
        amended by striking paragraph (3) and redesignating paragraphs 
        (4) and (5) as paragraphs (3) and (4), respectively.
    (b) States To Receive Partial Credit Toward Work Participation Rate 
for Recipients Engaged in Part-Time Work.--Section 407(c)(1) (42 U.S.C. 
607(c)(1)), as amended by section 107(3), is amended by adding at the 
end the following flush sentence: ``For purposes of subsection 
(b)(1)(B)(i), a family that does not include a recipient who is 
participating in work activities for an average of 32 hours per week 
during a month but includes a recipient who is participating in such 
activities during the month for an average of at least 50 percent of 
the minimum average number of hours per week specified for the month in 
the table set forth in this subparagraph shall be counted as a 
percentage of a family that includes an adult or minor child head of 
household who is engaged in work for the month, which percentage shall 
be the number of hours for which the recipient participated in such 
activities during the month divided by the number of hours of such 
participation required of the recipient under this section for the 
month.''.
    (c) TANF Recipients Who Qualify for Supplemental Security Income 
Benefits Removed From Work Participation Rate Calculation for Entire 
Year.--Section 407(b)(1)(B)(ii) (42 U.S.C. 607(b)(1)(B)(ii)) is 
amended--
            (1) in subclause (I), by inserting ``who has not become 
        eligible for supplemental security income benefits under title 
XVI during the fiscal year'' before the semicolon; and
            (2) in subclause (II), by inserting ``, and that do not 
        include an adult or minor child head of household who has 
        become eligible for supplemental security income benefits under 
        title XVI during the fiscal year'' before the period.
    (d) Effective Date.--The amendments made by this section take 
effect on October 1, 2005.

SEC. 107. ELIMINATION OF SEPARATE WORK PARTICIPATION RATE FOR 2-PARENT 
              FAMILIES.

    Section 407 (42 U.S.C. 607) is amended--
            (1) in subsection (a)--
                    (A) in the heading of paragraph (1), by striking 
                ``All families'' and inserting ``In general''; and
                    (B) by striking paragraph (2);
            (2) in subsection (b)--
                    (A) by striking paragraph (2);
                    (B) in paragraph (4), by striking ``paragraphs 
                (1)(B) and (2)(B)'' and inserting ``paragraph (1)(B)''; 
                and
                    (C) in paragraph (5), by striking ``rates'' and 
                inserting ``rate''; and
            (3) in subsection (c)(1)--
                    (A) by striking ``General rules.--'' and all that 
                follows through ``For purposes'' in subparagraph (A) 
                and inserting ``General rule.--For purposes''; and
                    (B) by striking subparagraph (B).

SEC. 108. STATE OPTION TO COUNT A CAREGIVER OF A FAMILY MEMBER WITH A 
              DISABILITY OR CHRONIC ILLNESS AS ENGAGED IN WORK.

    Section 407(c)(2) (42 U.S.C. 607(c)(2)) is amended by adding at the 
end the following:
                    ``(E) State option to count a caregiver of a family 
                member with a disability or chronic illness as engaged 
                in work.--
                            ``(i) In general.--If a State determines 
                        that a recipient is needed to provide care for 
                        a child with a physical or mental disability or 
                        chronic illness (as defined by the State), or 
                        an adult relative with a physical or mental 
                        disability or chronic illness (as so defined), 
                        the State may deem the recipient to be engaged 
                        in work for purposes of determining the monthly 
                        participation rate under subsection 
                        (b)(1)(B)(i).
                            ``(ii) Inclusion in individual 
                        responsibility plan; annual review.--The need 
                        to provide care described in clause (i) shall 
                        be specified in the recipient's individual 
                        responsibility plan established under section 
                        408(b) and reviewed not less than annually.
                            ``(iii) Engagement in other activity.--
                        Nothing in clause (i) or (ii) shall be 
                        construed as prohibiting a State from 
                        determining that, taking into consideration the 
                        needs of the child or adult relative with a 
                        physical or mental disability or chronic 
                        illness, an adult recipient who provides care 
                        for such child or adult relative can engage in 
                        some other additional work activity, or another 
                        activity that may lead to work, for all or a 
                        portion of the time required to meet the work 
                        requirement under the State program funded 
                        under this part.''.

                 TITLE II--FAMILY PROMOTION AND SUPPORT

 Subtitle A--Family Formation Fund and Teen Pregnancy Prevention Grants

SEC. 201. PROMOTION OF FAMILY FORMATION.

    Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end 
the following:
            ``(6) Family formation grants.--
                    ``(A) Authority.--
                            ``(i) In general.--The Secretary shall 
                        award competitive grants to States, Indian 
                        tribes, nonprofit entities, and charitable or 
                        religious organizations for the cost of 
                        developing and implementing healthy marriage 
                        promotion programs.
                            ``(ii) Application.--A State, Indian tribe, 
                        nonprofit entity, or a charitable or religious 
                        organization desiring a grant under this 
                        paragraph shall submit an application to the 
                        Secretary at such time, in such manner, and 
                        containing such information as the Secretary 
                        may require.
                    ``(B) Permissible activities.--Funds provided under 
                a grant awarded under this paragraph may be used for 
                programs or activities that are designed to promote 
                healthy and stable marriage, including the following:
                            ``(i) Voluntary marriage and relationship 
                        skills education programs for nonmarried 
                        pregnant women and nonmarried expectant 
                        fathers.
                            ``(ii) Voluntary premarital education and 
                        marriage and relationship skills education for 
                        engaged couples and for couples interested in 
                        marriage.
                            ``(iii) Voluntary marriage enhancement and 
                        marriage and relationship skills education 
                        programs for married couples including 
                        mediation services and couples counseling.
                            ``(iv) Teen pregnancy prevention programs, 
                        including the prevention of repeat pregnancies.
                            ``(v) Domestic violence prevention programs 
                        for training and technical assistance 
                        activities to be provided to other entities 
                        funded under this subparagraph.
                    ``(C) Grants selection criteria.--
                            ``(i) In general.--The Secretary shall 
                        promulgate for public comment criteria for 
                        selecting grant proposals to be funded under 
                        subparagraph (B). Such criteria shall--
                                    ``(I) set forth a grant review 
                                process that includes independent 
                                experts, including individuals with 
                                expertise in programs for low-income 
                                families, programs addressing teen 
                                pregnancy prevention, programs 
                                addressing teen parenting or youth 
                                development, programs addressing 
                                domestic violence, program research, 
                                and program administration, and shall 
                                be designed to ensure that an 
                                individual shall not be involved in the 
                                grant selection process if such 
                                involvement would pose a conflict of 
                                interest for the individual;
                                    ``(II) specify grantee 
                                qualifications and requirements, 
                                including a requirement that grant 
                                applications provide financial 
                                information, including a copy of the 
                                applicant's most recent audit report, 
                                and shall require grantees to agree to 
                                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;
                                    ``(III) require grant proposals to 
                                identify community support and include 
                                a plan to collaborate with appropriate 
                                public and community-based 
                                organizations and service providers; 
                                and
                                    ``(IV) require grant proposals to 
                                describe the methods the applicant 
                                plans to use to recruit project 
                                participants and the applicant's plan 
                                to evaluate project implementation, 
                                operation, and outcomes, and to 
                                demonstrate that there is a sufficient 
                                number of potential participants to 
                                conduct the evaluation.
                            ``(ii) Oversight of evaluations.--The 
                        Secretary shall ensure that there is an 
                        appropriate evaluation for all grant proposals 
                        funded under subparagraph (B), including use of 
                        random assignment in appropriate instances.
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there is appropriated for making grants 
                under this paragraph--
                            ``(i) for fiscal year 2004, $75,000,000;
                            ``(ii) for fiscal year 2005, $100,000,000;
                            ``(iii) for fiscal year 2006, $150,000,000;
                            ``(iv) for fiscal year 2007, $175,000,000; 
                        and
                            ``(v) for fiscal year 2008, 
                        $200,000,000.''.

SEC. 202. BAN ON IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-
              PARENT FAMILIES.

    (a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)) is amended by 
adding at the end the following:
            ``(12) Ban on imposition of stricter eligibility criteria 
        for 2-parent families.--In determining the eligibility of a 2-
        parent family for assistance under a State program funded under 
        this part, the State shall not impose a requirement that does 
        not apply in determining the eligibility of a 1-parent family 
        for such assistance.''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 609(a)) is amended by 
adding at the end the following:
            ``(15) Penalty for imposition of stricter eligibility 
        criteria for 2-parent families.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 for 
                a fiscal year has violated section 408(a)(12) during 
                the fiscal year, the Secretary shall reduce the grant 
                payable to the State under section 403(a)(1) for the 
                immediately succeeding fiscal year by an amount equal 
                to 5 percent of the State family assistance grant.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) with respect to a fiscal year based on the degree 
                of noncompliance.''.

SEC. 203. TEEN PREGNANCY PREVENTION GRANTS.

    Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as 
follows:
            ``(2) Grants to prevent teen pregnancy.--
                    ``(A) Submission of plan.--
                            ``(i) In general.--Each State that submits 
                        a plan that meets the requirements of clause 
                        (ii) shall be entitled to receive from the 
                        Secretary a teen pregnancy prevention grant in 
                        the amount determined under subparagraph (B) 
                        for each of fiscal years 2004 through 2008.
                            ``(ii) Plan requirements.--A plan meets the 
                        requirements of this clause if the plan--
                                    ``(I) describes the State's 
                                numerical goal for reducing teen 
                                pregnancy and teen births;
                                    ``(II) identifies the strategies to 
                                be used to achieve such goal; and
                                    ``(III) describes the efforts the 
                                State will make to involve young men, 
                                as well as young women, in delaying 
                                pregnancy and parenting.
                            ``(iii) Set-aside for grants to indian 
                        tribes.--Not less than an amount equal to 1.5 
                        percent of the amount appropriated under 
                        subparagraph (G) for a fiscal year shall be 
                        used for the purpose of awarding grants to 
Indian tribes under this paragraph in such manner, and subject to such 
requirements, as the Secretary, in consultation with such tribes, 
determines appropriate.
                    ``(B) Grant amount.--
                            ``(i) In general.--The Secretary shall 
                        allot to each State with a plan approved under 
                        subparagraph (A) an amount equal to--
                                    ``(I) with respect to fiscal year 
                                2004, the amount that bears the same 
                                ratio to the amount of funds 
                                appropriated under subparagraph (G) for 
                                such fiscal year as the proportion of 
                                births in the State to teens under age 
                                20 bears to the number of such births 
                                in all States; and
                                    ``(II) with respect to each of 
                                fiscal years 2005 through 2008, the 
                                amount that bears the same ratio to 50 
                                percent of the amount of funds 
                                appropriated under subparagraph (G) for 
                                each such fiscal year as the proportion 
                                of births in the State to teens under 
                                age 20 bears to the number of such 
                                births in all States.
                            ``(ii) Incentive funds.--In addition to the 
                        amount determined for a State under clause 
                        (i)(II), in the case of a State that is a high 
                        achieving State (as defined in clause (iii)), 
                        the Secretary shall allot to such high 
                        achieving State with respect to each of fiscal 
                        years 2005 through 2008, the amount that bears 
                        the same ratio to 50 percent of the amount of 
                        funds appropriated under subparagraph (G) for 
                        each such fiscal year as the proportion of 
                        teens under age 20 in the high achieving State 
                        bears to the number of such teens in all such 
                        high achieving States.
                            ``(iii) Definition of high achieving 
                        state.--In this paragraph, the term `high 
                        achieving State' means a State that has 
                        achieved an annual decline in the teen birth 
                        rate for the State as compared to the preceding 
                        year (or the most recent year for which data is 
                        available) of at least 2.5 percent.
                            ``(iv) Determination of teen birth rates.--
                        For purposes of this subparagraph, the teen 
                        birth rate for a State shall be determined on 
                        the basis of the birth rate per 1,000 women, 
                        ages 15 through 19, who reside in the State.
                    ``(C) Use of funds.--
                            ``(i) In general.--A State shall use funds 
                        provided under a grant made under this 
                        paragraph to implement teen pregnancy 
                        prevention strategies that--
                                    ``(I) are abstinence-first, as 
                                defined in clause (ii)(I);
                                    ``(II) replicate or substantially 
                                incorporate the elements of 1 or more 
                                teen pregnancy prevention programs, 
                                including certain youth development 
                                programs and service learning programs, 
                                that have been proven effective (on the 
                                basis of rigorous scientific research 
                                as defined in clause (ii)(III));
                                    ``(III) delay or decrease sexual 
                                activity, increase contraceptive use 
                                among sexually active teens, or reduce 
                                teenage pregnancies without increasing 
                                risky behaviors; and
                                    ``(IV) incorporate outreach or 
                                media programs.
                            ``(ii) Design and implementation 
                        flexibility.--States and Indian tribes 
                        receiving a grant under this paragraph shall 
                        have flexibility to determine how to use funds 
                        made available under the grant to design and 
                        implement the teen pregnancy prevention 
                        strategies described in clause (i).
                            ``(iii) Definitions.--In this paragraph:
                                    ``(I) Abstinence-first.--The term 
                                `abstinence-first' means a strategy 
                                that strongly emphasizes abstinence as 
                                the best and only certain way to avoid 
                                pregnancy and sexually transmitted 
                                infections and that discusses the 
                                scientifically proven effectiveness, 
                                benefits, and limitations of 
                                contraception and other approaches in a 
                                manner that is medically accurate, as 
                                defined in subclause (II).
                                    ``(II) Medically accurate.--The 
                                term `medically accurate' means 
                                information that is supported by 
                                research recognized as accurate and 
                                objective by leading medical, 
                                psychological, psychiatric, or public 
                                health organizations and agencies and, 
                                where relevant, is published in a peer-
                                reviewed journal (as defined by the 
                                American Medical Association).
                                    ``(III) Rigorous scientific 
                                research.--The term `rigorous 
                                scientific research' means research 
                                that typically uses randomized control 
                                trials and other similar strong 
                                experimental designs.
                    ``(D) Subgrant or contract recipients.--A State to 
                which a grant is made under this paragraph for a fiscal 
                year may award subgrants or contracts to--
                            ``(i) State or local nonprofit coalitions 
                        working to prevent teenage pregnancy;
                            ``(ii) State, local, or tribal agencies;
                            ``(iii) schools;
                            ``(iv) entities that provide after school 
                        programs;
                            ``(v) nonprofit community or faith-based 
                        organizations; or
                            ``(vi) other organizations designated by 
                        the State.
                    ``(E) Supplementation of funds.--A State to which a 
                grant is made under this paragraph for a fiscal year 
                shall use funds provided under the grant to supplement 
                and not supplant funds that would otherwise be 
                available to the State for preventing teen pregnancy.
                    ``(F) Data reporting.--A State to which a grant is 
                made under this paragraph for a fiscal year shall 
                cooperate with the Secretary to collect information and 
                report on outcomes of programs funded under the grant, 
                as specified by the Secretary.
                    ``(G) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for making grants 
                under this paragraph--
                            ``(i) for fiscal year 2004, $50,000,000; 
                        and
                            ``(ii) for each of fiscal years 2005 
                        through 2008, $100,000,000.''.

SEC. 204. TEEN PREGNANCY PREVENTION RESOURCE CENTER.

    (a) Authority To Establish.--
            (1) In general.--The Secretary of Health and Human Services 
        (in this section referred to as the ``Secretary'') shall make a 
        grant to a nationally recognized, nonpartisan, nonprofit 
        organization that meets the requirements described in paragraph 
        (2) to establish and operate a national teen pregnancy 
        prevention resource center (in this section referred to as the 
        ``Resource Center'') to carry out the purposes and activities 
        described in subsection (b).
            (2) Contractor requirements.--The requirements described in 
        this paragraph are the following:
                    (A) The organization has at least 7 years of 
                experience in working with diverse sectors of society 
                to reduce teen pregnancy.
                    (B) The organization has a demonstrated ability to 
                work with and provide assistance to a broad range of 
                individuals and entities, including teens, parents, the 
                entertainment and news media, State, tribal, and local 
                organizations, networks of teen pregnancy prevention 
                practitioners, businesses, faith and community leaders, 
                and researchers.
                    (C) The organization is research-based and has 
                capabilities in scientific analysis and evaluation.
                    (D) The organization has comprehensive knowledge 
                and data about teen pregnancy prevention strategies.
                    (E) The organization has experience carrying out 
                activities similar to the activities described in 
                subsection (b)(2).
    (b) Purposes and Activities.--
            (1) Purposes.--The purposes of the Resource Center are to--
                    (A) provide information and technical assistance to 
                States, Indian tribes, local communities, and other 
                public or private organizations seeking to reduce rates 
                of teen pregnancy;
                    (B) support parents in their essential role in 
                preventing teen pregnancy by equipping parents with 
                information and resources to promote and strengthen 
                communication with their children; and
                    (C) assist the entertainment media industry by 
                providing information and helping that industry develop 
                content and messages for teens and adults that can help 
                prevent teen pregnancy.
            (2) Activities.--The Resource Center shall carry out the 
        purposes described in paragraph (1) through the following 
        activities:
                    (A) Synthesizing and disseminating research and 
                information regarding effective and promising practices 
                to prevent teen pregnancy.
                    (B) Developing and providing information on how to 
                design and implement effective programs to prevent teen 
                pregnancy.
                    (C) Helping States, local communities, and other 
                organizations increase their knowledge of existing 
                resources that can be used to advance teen pregnancy 
                prevention efforts, build their capacity to access such 
                resources, and develop partnerships with other programs 
                and funding streams.
                    (D) Linking organizations working to reduce teen 
                pregnancy with experts and peer groups, including the 
                creation of technical assistance networks.
                    (E) Providing consultation and resources on how to 
                reduce teen pregnancy through a broad array of 
                strategies, including enlisting the help of various 
                sectors of society such as parents, other adults (such 
                as coaches, teachers, and mentors), community or faith-
                based groups, the entertainment and news media, 
                business, and teens themselves.
                    (F) Assisting organizations seeking to reduce teen 
                pregnancy in their efforts to work with all forms of 
                media and to reach a variety of audiences (such as 
                teens, parents, and ethnically diverse groups) to 
                communicate effective messages about preventing teen 
                pregnancy, including messages that focus on abstinence, 
                responsible behavior, family communication, 
                relationships, and values.
                    (G) Providing resources for parents and other 
                adults that help to foster strong connections with 
                children, which has been proven effective in reducing 
                sexual activity and teen pregnancy, including online 
                access to research, parent guides, tips, and alerts 
                about upcoming opportunities to use the entertainment 
                media as a discussion starter.
                    (H) Working directly with individuals and 
                organizations in the entertainment industry to provide 
                consultation and serve as a source of factual 
                information on issues related to teen pregnancy 
                prevention.
    (c) Media Campaigns.--
            (1) In general.--The organization operating the Resource 
        Center may use a portion of the funds appropriated to carry out 
        this section to develop and implement media campaigns directly 
        or through grants, contracts, or cooperative agreements with 
        other entities. Such campaigns may include the production and 
        distribution of printed materials and messages for print media, 
        television and radio broadcast media, the Internet, or such 
        other media as may be appropriate for reaching large numbers of 
        young people, parents, and community leaders.
            (2) Matching.--To the extent possible, funds used to 
        develop and implement media campaigns under this subsection 
        should be matched with non-Federal resources, including in-kind 
        contributions, from public and private entities.
    (d) Collaboration With Other Organizations.--The organization 
operating the Resource Center shall collaborate with other 
organizations that have expertise and interest in teen pregnancy 
prevention and that can help to reach out to diverse audiences.
    (e) Evaluation.--
            (1) Reservation and availability of funds.--Of the amount 
        appropriated under subsection (f) for fiscal year 2004, 
        $5,000,000 shall be reserved for use by the Secretary of Health 
        and Human Services to prepare an interim and final report 
        summarizing and synthesizing outcomes and lessons learned from 
        the activities funded under this section. Funds reserved under 
        the preceding sentence shall remain available for expenditure 
        through fiscal year 2008.
            (2) Required information.--Each report required under 
        paragraph (1) shall include--
                    (A) a rigorous scientific evaluation of at least 3 
                such activities that are selected to represent a 
                diversity of strategies; and
                    (B) an assessment of the ability to replicate and 
                expand activities that have proven effective on a 
                smaller scale.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Health and Human Services to carry out 
this section, $10,000,000 for each of fiscal years 2004 through 2008.

SEC. 205. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.

    Section 905 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (42 U.S.C. 710 note) is amended to read as 
follows:

``SEC. 905. ESTABLISHING NATIONAL GOALS TO PREVENT TEEN PREGNANCY.

    ``(a) In General.--Not later than January 1, 2004, the Secretary of 
Health and Human Services shall establish a national goal of reducing 
teen pregnancy by at least 25 percent by January 1, 2014.
    ``(b) Report.--Not later than June 30, 2004, and annually 
thereafter, the Secretary of Health and Human Services shall report to 
Congress with respect to the progress that has been made in meeting the 
national goal established under subsection (a).''.

        Subtitle B--Child Support Distribution to Families First

                CHAPTER 1--DISTRIBUTION OF CHILD SUPPORT

SEC. 211. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF 
              OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.

    (a) Modification of Rule Requiring Assignment of Support Rights as 
a Condition of Receiving TANF.--Section 408(a)(3) (42 U.S.C. 608(a)(3)) 
is amended to read as follows:
            ``(3) No assistance for families not assigning certain 
        support rights to the state.--A State to which a grant is made 
        under section 403 shall require, as a condition of paying 
        assistance to a family under the State program funded under 
        this part, that a member of the family assign to the State any 
        right the family member may have (on behalf of the family 
        member or of any other person for whom the family member has 
        applied for or is receiving such assistance) to support from 
        any other person, not exceeding the total amount of assistance 
        so paid to the family, which accrues during the period that the 
        family receives assistance under the program.''.
    (b) Increasing Child Support Payments to Families and Simplifying 
Child Support Distribution Rules.--
            (1) Distribution rules.--
                    (A) In general.--Section 457(a) (42 U.S.C. 657(a)) 
                is amended to read as follows:
    ``(a) In General.--Subject to subsections (e) and (f), the amounts 
collected on behalf of a family as support by a State pursuant to a 
plan approved under this part shall be distributed as follows:
            ``(1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State shall--
                    ``(A) pay to the Federal Government the Federal 
                share of the amount collected, subject to paragraph 
                (3)(A);
                    ``(B) retain, or pay to the family, the State share 
                of the amount collected, subject to paragraph (3)(B); 
                and
                    ``(C) pay to the family any remaining amount.
            ``(2) Families that formerly received assistance.--In the 
        case of a family that formerly received assistance from the 
        State:
                    ``(A) Current support.--To the extent that the 
                amount collected does not exceed the current support 
                amount, the State shall pay the amount to the family.
                    ``(B) Arrearages.--Except as otherwise provided in 
                an election made under 434(34), to the extent that the 
                amount collected exceeds the current support amount, 
                the State--
                            ``(i) shall first pay to the family the 
                        excess amount, to the extent necessary to 
                        satisfy support arrearages not assigned 
                        pursuant to section 408(a)(3);
                            ``(ii) if the amount collected exceeds the 
                        amount required to be paid to the family under 
                        clause (i), shall--
                                    ``(I) pay to the Federal 
                                Government, the Federal share of the 
                                excess amount described in this clause, 
                                subject to paragraph (3)(A); and
                                    ``(II) retain, or pay to the 
                                family, the State share of the excess 
                                amount described in this clause, 
                                subject to paragraph (3)(B); and
                            ``(iii) shall pay to the family any 
                        remaining amount.
            ``(3) Limitations.--
                    ``(A) Federal reimbursements.--The total of the 
                amounts paid by the State to the Federal Government 
                under paragraphs (1) and (2) of this subsection with 
                respect to a family shall not exceed the Federal share 
                of the amount assigned with respect to the family 
                pursuant to section 408(a)(3).
                    ``(B) State reimbursements.--The total of the 
                amounts retained by the State under paragraphs (1) and 
                (2) of this subsection with respect to a family shall 
                not exceed the State share of the amount assigned with 
                respect to the family pursuant to section 408(a)(3).
            ``(4) Families that never received assistance.--In the case 
        of any other family, the State shall pay the amount collected 
        to the family.
            ``(5) Families under certain agreements.--Notwithstanding 
        paragraphs (1) through (3), in the case of an amount collected 
        for a family in accordance with a cooperative agreement under 
        section 454(33), the State shall distribute the amount 
        collected pursuant to the terms of the agreement.
            ``(6) State financing options.--To the extent that the 
        State's share of the amount payable to a family pursuant to 
        paragraph (2)(B) of this subsection exceeds the amount that the 
        State estimates (under procedures approved by the Secretary) 
        would have been payable to the family pursuant to former 
        section 457(a)(2)(B) (as in effect for the State immediately 
        before the date this subsection first applies to the State) if 
        such former section had remained in effect, the State may elect 
        to use the grant made to the State under section 403(a) to pay 
        the amount, or to have the payment considered a qualified State 
        expenditure for purposes of section 409(a)(7), but not both.
            ``(7) State option to pass through additional support with 
        federal financial participation.--
                    ``(A) In general.--Notwithstanding paragraphs (1), 
                a State shall not be required to pay to the Federal 
                Government the Federal share of an amount collected on 
                behalf of a family that is not a recipient of 
                assistance under the State program funded under part A, 
                to the extent that the State pays the amount to the 
                family.
                    ``(B) Recipients of tanf for less than 5 years.--
                            ``(i) In general.--Notwithstanding 
                        paragraphs (1), a State shall not be required 
                        to pay to the Federal Government the Federal 
                        share of an amount collected on behalf of a 
                        family that is a recipient of assistance under 
                        the State program funded under part A and, if 
                        the family includes an adult, that has received 
                        the assistance for not more than 5 years after 
                        the date of enactment of this paragraph, to the 
                        extent that--
                                    ``(I) the State pays the amount to 
                                the family; and
                                    ``(II) subject to clause (ii), the 
                                amount is disregarded in determining 
                                the amount and type of the assistance 
                                provided to the family.
                            ``(ii) Limitation.--Of the amount 
                        disregarded as described in clause (i)(II), the 
                        maximum amount that may be taken into account 
                        for purposes of clause (i) shall not exceed 
                        $400 per month, except that, in the case of a 
                        family that includes 2 or more children, the 
                        State may elect to increase the maximum amount 
                        to not more than $600 per month.
            ``(8) States with demonstration waivers.--Notwithstanding 
        the preceding paragraphs, a State with a waiver under section 
        1115, effective on or before October 1, 1997, the terms of 
        which allow pass-through of child support payments, may pass 
        through payments in accordance with such terms with respect to 
        families subject to the waiver.''.
                    (B) State plan to include election as to which 
                rules to apply in distributing child support arrearages 
                collected on behalf of families formerly receiving 
                assistance.--Section 454 (42 U.S.C. 654) is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (32);
                            (ii) by striking the period at the end of 
                        paragraph (33) and inserting ``; and''; and
                            (iii) by inserting after paragraph (33) the 
                        following:
            ``(34) include an election by the State to apply section 
        457(a)(2)(B) of this Act or former section 457(a)(2)(B) of this 
        Act (as in effect for the State immediately before the date 
        this paragraph first applies to the State) to the distribution 
        of the amounts which are the subject of such sections, and for 
        so long as the State elects to so apply such former section, 
        the amendments made by subsection (b)(1)(A) of section 211 of 
        the Building on Welfare Success Act of 2003 shall not apply 
        with respect to the State, notwithstanding subsection (f)(1) of 
such section 211.''.
                    (C) Approval of estimation procedures.--Not later 
                than the date that is 6 months after the date of 
                enactment of this Act, the Secretary of Health and 
                Human Services, in consultation with the States (as 
                defined for purposes of part D of title IV of the 
                Social Security Act), shall establish the procedures to 
                be used to make the estimate described in section 
                457(a)(6) of such Act.
            (2) Current support amount defined.--Section 457(c) (42 
        U.S.C. 657(c)) is amended by adding at the end the following:
            ``(5) Current support amount.--The term `current support 
        amount' means, with respect to amounts collected as support on 
        behalf of a family, the amount designated as the monthly 
        support obligation of the noncustodial parent in the order 
        requiring the support.''.
    (c) Ban on Recovery of Medicaid Costs for Certain Births.--Section 
454 (42 U.S.C. 654), as amended by subsection (b)(1)(B), is amended--
            (1) by striking ``and'' at the end of paragraph (33);
            (2) by striking the period at the end of paragraph (34) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (34) the following:
            ``(35) provide that the State shall not use the State 
        program operated under this part to collect any amount owed to 
        the State by reason of costs incurred under the State plan 
        approved under title XIX for the birth of a child for whom 
        support rights have been assigned pursuant to section 
        408(a)(3), 471(a)(17), or 1912.''.
    (d) State Option To Discontinue Pre-1997 Support Assignments.--
Section 457(b) (42 U.S.C. 657(b)) is amended to read as follows:
    ``(b) Continuation of Assignments.--
            ``(1) State option to discontinue pre-1997 support 
        assignments.--
                    ``(A) In general.--Any rights to support 
                obligations assigned to a State as a condition of 
                receiving assistance from the State under part A and in 
                effect on September 30, 1997 (or such earlier date on 
                or after August 22, 1996, as the State may choose), may 
                remain assigned after such date.
                    ``(B) Distribution of amounts after assignment 
                discontinuation.--If a State chooses to discontinue the 
                assignment of a support obligation described in 
                subparagraph (A), the State may treat amounts collected 
                pursuant to such assignment as if such amounts had 
                never been assigned and may distribute such amounts to 
                the family in accordance with subsection (a)(4).
            ``(2) State option to discontinue post-1997 assignments.--
                    ``(A) In general.--Any rights to support 
                obligations accruing before the date on which a family 
                first receives assistance that are assigned to a State 
                under part A and in effect before the implementation 
                date of this section may remain assigned after such 
                date.
                    ``(B) Distribution of amounts after assignment 
                discontinuation.--If a State chooses to discontinue the 
                assignment of a support obligation described in 
                subparagraph (A), the State may treat amounts collected 
                pursuant to such assignment as if such amounts had 
                never been assigned and may distribute such amounts to 
                the family in accordance with subsection (a)(4).''.
    (e) Conforming Amendments.--
            (1) Section 404(a) (42 U.S.C. 604(a)) is amended--
                    (A) by striking ``or'' at the end of paragraph (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(3) to fund payment of an amount pursuant to clause (i) 
        or (ii) of section 457(a)(2)(B), but only to the extent that 
        the State properly elects under section 457(a)(6) to use the 
        grant to fund the payment.''.
            (2) Section 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is 
        amended--
                    (A) in subclause (I)(aa), by striking 
                ``457(a)(1)(B)'' and inserting ``457(a)(1)''; and
                    (B) by adding at the end the following:
                                    ``(V) Portions of certain child 
                                support payments collected on behalf of 
                                and distributed to families no longer 
                                receiving assistance.--Any amount paid 
                                by a State pursuant to clause (i) or 
                                (ii) of section 457(a)(2)(B), but only 
                                to the extent that the State properly 
                                elects under section 457(a)(6) to have 
                                the payment considered a qualified 
                                State expenditure.''.
            (3) Tax offset authority.--Section 6402(c) of the Internal 
        Revenue Code of 1986 (relating to authority to make credits or 
        refunds) is amended--
                    (A) in the first sentence, by striking ``the Social 
                Security Act'' the second place it appears and 
                inserting ``such Act''; and
                    (B) by striking the third sentence and inserting 
                the following: ``The Secretary shall apply a reduction 
                under this subsection first to an amount certified by 
                the State as past due support under section 464 before 
                any other reductions allowed by law.''.
    (f) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on October 1, 2004, and shall apply to payments 
        under parts A and D of title IV of the Social Security Act for 
        calendar quarters beginning on or after such date, and without 
        regard to whether regulations to implement such amendments (in 
the case of State programs operated under such part D) are promulgated 
by such date.
            (2) State option to accelerate effective date.--In 
        addition, a State may elect to have the amendments made by this 
        section apply to the State and to amounts collected by the 
        State, on and after such date as the State may select that is 
        after the date of enactment of this Act and before October 1, 
        2004.

                    CHAPTER 2--EXPANDED ENFORCEMENT

SEC. 221. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING 
              PASSPORT DENIAL.

    Section 452(k) (42 U.S.C. 652(k)) is amended by striking ``$5,000'' 
and inserting ``$2,500''.

SEC. 222. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD 
              SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

    Section 464 (42 U.S.C. 664) is amended--
            (1) in subsection (a)(2)(A), by striking ``(as that term is 
        defined for purposes of this paragraph under subsection (c))''; 
        and
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Except as provided in 
                        paragraph (2), as used in'' and inserting 
                        ``In''; and
                            (ii) by inserting ``(whether or not a 
                        minor)'' after ``a child'' each place it 
                        appears; and
                    (B) by striking paragraphs (2) and (3).

SEC. 223. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
              CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT 
              OBLIGATIONS.

    Section 459(h) (42 U.S.C. 659(h)) is amended--
            (1) in paragraph (1)(A)(ii)--
                    (A) in subclause (IV), by striking ``or'' after the 
                semicolon;
                    (B) in subclause (V), by inserting ``or'' after the 
                semicolon; and
                    (C) by adding at the end the following:
                                    ``(VI) subject to paragraph (3), 
                                other than periodic benefits or 
                                payments described in subclause (V), by 
                                the Secretary of Veterans Affairs as 
                                compensation for a service-connected 
                                disability paid by the Secretary to a 
                                former member of the Armed Forces;'';
            (2) in paragraph (1)(B)(iii), by striking ``subparagraph 
        (A)(ii)(V)'' and inserting ``subclauses (V) and (VI) of 
        subparagraph (A)(ii)''; and
            (3) by adding at the end the following:
            ``(3) Limitations with respect to compensation paid to 
        veterans for service-connected disabilities.--
                    ``(A) Alimony and child support.--Compensation 
                described in paragraph (1)(A)(ii)(VI) shall not be 
                subject to withholding pursuant to this section--
                            ``(i) for payment of alimony; or
                            ``(ii) for payment of child support if the 
                        individual is fewer than 60 days in arrears in 
                        payment of the support.
                    ``(B) Limitation.--Not more than 50 percent of any 
                payment of compensation described in subparagraph (A) 
                may be withheld pursuant to this section.''.

SEC. 224. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR 
              FAMILIES RECEIVING TANF.

    (a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C. 
666(a)(10)(A)(i)) is amended in the matter preceding subclause (I)--
            (1) by striking ``parent, or,'' and inserting ``parent 
        or''; and
            (2) by striking ``upon the request of the State agency 
        under the State plan or of either parent,''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2005.

SEC. 225. IMPROVED INTERSTATE ENFORCEMENT.

    (a) Adoption of Uniform State Laws.--Section 466(f) (42 U.S.C. 
666(f)) is amended--
            (1) by striking ``January 1, 1998'' and inserting ``October 
        1, 2004''; and
            (2) by striking ``August 22, 1996'' and inserting ``January 
        1, 2002''.
    (b) Full Faith and Credit for Child Support Orders.--Section 1738B 
of title 28, United States Code, is amended--
            (1) by striking subsection (d) and inserting the following:
    ``(d) Continuing Exclusive Jurisdiction.--
            ``(1) In general.--Subject to paragraph (2), a court of a 
        State that has made a child support order consistently with 
        this section has continuing, exclusive jurisdiction to modify 
        its order if the order is the controlling order and--
                    ``(A) the State is the child's State or the 
                residence of any individual contestant; or
                    ``(B) if the State is not the residence of the 
                child or an individual contestant, the contestants 
                consent in a record or in open court that the court may 
                continue to exercise jurisdiction to modify its order.
            ``(2) Requirement.--A court may not exercise its 
        continuing, exclusive jurisdiction to modify the order if the 
        court of another State, acting in accordance with subsections 
        (e) and (f), has made a modification of the order.'';
            (2) in subsection (e)(2)--
                    (A) in subparagraph (A), by striking ``because'' 
                and all that follows through the semicolon and 
                inserting ``pursuant to paragraph (1) or (2) of 
                subsection (d);'' and
                    (B) in subparagraph (B), by inserting ``with 
                jurisdiction over at least 1 of the individual 
                contestants or that is located in the child's State'' 
                after ``another State'';
            (3) in subsection (f)--
                    (A) in the subsection heading, by striking 
                ``Recognition of Child Support Orders'' and inserting 
                ``Determination of Controlling Child Support Order'';
                    (B) in the matter preceding paragraph (1), by 
                striking ``shall apply'' and all that follows through 
                the colon and inserting ``having personal jurisdiction 
                over both individual contestants shall apply the 
                following rules and by order shall determine which 
                order controls:''
                    (C) in paragraph (1), by striking ``must be'' and 
                inserting ``controls and must be so'';
                    (D) in paragraph (2), by striking ``must be 
                recognized'' and inserting ``controls'';
                    (E) in paragraph (3), by striking ``must be 
                recognized'' each place it appears and inserting 
                ``controls'';
                    (F) in paragraph (4)--
                            (i) by striking ``may'' and inserting 
                        ``shall''; and
                            (ii) by striking ``must be recognized'' and 
                        inserting ``controls''; and
                    (G) by striking paragraph (5);
            (4) by striking subsection (g) and inserting the following:
    ``(g) Enforcement of Modified Orders.--If a child support order 
issued by a court of a State is modified by a court of another State 
which properly assumed jurisdiction, the issuing court--
            ``(1) may enforce its order that was modified only as to 
        arrears and interest accruing before the modification;
            ``(2) may provide appropriate relief for violations of its 
        order which occurred before the effective date of the 
        modification; and
            ``(3) shall recognize the modifying order of the other 
        State for the purpose of enforcement.'';
            (5) in subsection (h)--
                    (A) in paragraph (1), by striking ``and (3)'' and 
                inserting ``, (3), and (4)'';
                    (B) in paragraph (2), by inserting ``the 
                computation and payment of arrearages, and the accrual 
                of interest on the arrearages,'' after ``obligations of 
                support,''; and
                    (C) by adding at the end the following:
            ``(4) Prospective application.--After a court determines 
        which is the controlling order and issues an order 
        consolidating arrears, if any, a court shall prospectively 
        apply the law of the State issuing the controlling order, 
        including that State's law with respect to interest on arrears, 
        current and future support, and consolidated arrears.''; and
            (6) in subsection (i), by inserting ``and subsection (d)(2) 
        does not apply'' after ``issuing State''.

                        CHAPTER 3--MISCELLANEOUS

SEC. 231. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

    Not later than 6 months after the date of enactment of this Act, 
the Secretary of Health and Human Services shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report on the procedures that the 
States use generally to locate custodial parents for whom child support 
has been collected but not yet distributed due to a change in address. 
The report shall include an estimate of the total amount of such 
undistributed child support and the average length of time it takes for 
such child support to be distributed. The Secretary shall include in 
the report recommendations as to whether additional procedures should 
be established at the Federal or State level to expedite the payment of 
undistributed child support.

SEC. 232. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF 
              UNEMPLOYMENT COMPENSATION PROGRAMS.

    Section 453(j) (42 U.S.C. 653(j)) is amended by adding at the end 
the following:
            ``(7) Information comparisons and disclosure to assist in 
        administration of unemployment compensation programs.--
                    ``(A) In general.--If a State agency responsible 
                for the administration of an unemployment compensation 
                program under Federal or State law transmits to the 
                Secretary the name and social security account number 
                of an individual, the Secretary shall, if the 
                information in the National Directory of New Hires 
                indicates that the individual may be employed, disclose 
                to the State agency the name, address, and employer 
                identification number of any putative employer of the 
                individual, subject to this paragraph.
                    ``(B) Condition on disclosure.--The Secretary shall 
                make a disclosure under subparagraph (A) only to the 
                extent that the Secretary determines that the 
                disclosure would not interfere with the effective 
                operation of the program under this part.
                    ``(C) Use of information.--A State agency may use 
                information provided under this paragraph only for 
                purposes of administering a program referred to in 
                subparagraph (A).''.

SEC. 233. IMMIGRATION PROVISIONS.

    (a) Nonimmigrant Aliens Ineligible To Receive Visas and Excluded 
From Admission for Nonpayment of Child Support.--
            (1) In general.--Section 212(a)(10) of the Immigration and 
        Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at 
        the end the following:
                    ``(F) Nonpayment of child support.--
                            ``(i) In general.--Any nonimmigrant alien 
                        is inadmissible who is legally obligated under 
                        a judgment, decree, or order to pay child 
                        support (as defined in section 459(i)(2) of the 
                        Social Security Act), and whose failure to pay 
                        such child support has resulted in an arrearage 
                        exceeding $2,500, until child support payments 
                        under the judgment, decree, or order are 
                        satisfied or the nonimmigrant alien is in 
                        compliance with an approved payment agreement.
                            ``(ii) Waiver authorized.--The Secretary of 
                        Homeland Security may waive the application of 
                        clause (i) in the case of an alien, if the 
                        Secretary--
                                    ``(I) has received a request for 
                                the waiver from the court or 
                                administrative agency having 
                                jurisdiction over the judgment, decree, 
                                or order obligating the alien to pay 
                                child support that is referred to in 
                                such clause; or
                                    ``(II) determines that there are 
                                prevailing humanitarian or public 
                                interest concerns.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect 180 days after the date of enactment of this 
        Act.
    (b) Authorization To Serve Legal Process in Child Support Cases on 
Certain Arriving Aliens.--
            (1) In general.--Section 235(d) of the Immigration and 
        Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the 
        end the following:
            ``(5) Authority to serve process in child support cases.--
                    ``(A) In general.--To the extent consistent with 
                State law, immigration officers are authorized to serve 
                on any alien who is an applicant for admission to the 
                United States legal process with respect to any action 
                to enforce or establish a legal obligation of an 
                individual to pay child support (as defined in section 
                459(i)(2) of the Social Security Act).
                    ``(B) Definition.--For purposes of subparagraph 
                (A), the term `legal process' means any writ, order, 
                summons, or other similar process, which is issued by--
                            ``(i) a court or an administrative agency 
                        of competent jurisdiction in any State, 
                        territory, or possession of the United States; 
                        or
                            ``(ii) an authorized official pursuant to 
                        an order of such a court or agency or pursuant 
                        to State or local law.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to aliens applying for admission to the United 
        States on or after 180 days after the date of enactment of this 
        Act.
    (c) Authorization To Share Child Support Enforcement Information To 
Enforce Immigration and Naturalization Law.--
            (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
        652) is amended by adding at the end the following:
    ``(m) If the Secretary receives a certification by a State agency, 
in accordance with section 454(36), that an individual who is a 
nonimmigrant alien (as defined in section 101(a)(15) of the Immigration 
and Nationality Act) owes arrearages of child support in an amount 
exceeding $2,500, the Secretary may, at the request of the State 
agency, the Secretary of State, or the Secretary of Homeland Security, 
or on the Secretary's own initiative, provide the certification to the 
Secretary of State and the Secretary of Homeland Security in order to 
enable them to carry out their responsibilities under sections 
212(a)(10) and 235(d) of such Act.''.
            (2) State agency responsibility.--Section 454 (42 U.S.C. 
        654), as amended by section 211(c), is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (34);
                    (B) by striking the period at the end of paragraph 
                (35) and inserting ``; and''; and
                    (C) by inserting after paragraph (35) the 
                following:
            ``(36) provide that the State agency will have in effect a 
        procedure for certifying to the Secretary, in such format and 
        accompanied by such supporting documentation as the Secretary 
        may require, determinations that nonimmigrant aliens owe 
        arrearages of child support in an amount exceeding $2,500.''.

SEC. 234. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR 
              SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE 
              AGENCIES.

    Section 474(a)(3)(B) of the Social Security Act (42 U.S.C. 
674(a)(3)(B)) is amended by inserting ``, or State-licensed or State-
approved child welfare agencies providing services,'' after ``child 
care institutions''.

                   Subtitle C--Responsible Fatherhood

SEC. 241. RESPONSIBLE FATHERHOOD GRANTS.

    Part D of title IV of the Social Security Act (42 U.S.C. 651 et 
seq.) is amended by adding at the end the following:

``SEC. 469C. RESPONSIBLE FATHERHOOD GRANTS.

    ``(a) Grants to States To Conduct Demonstration Programs.--
            ``(1) Authority to award grants.--
                    ``(A) In general.--The Secretary shall award grants 
                to up to 10 eligible States to conduct demonstration 
                programs to carry out the purposes described in 
                paragraph (2).
                    ``(B) Eligible state.--For purposes of this 
                subsection, an eligible State is a State that submits 
                to the Secretary the following:
                            ``(i) Application.--An application for a 
                        grant under this subsection, at such time, in 
                        such manner, and containing such information as 
                        the Secretary may require.
                            ``(ii) State plan.--A State plan that 
                        includes the following:
                                    ``(I) Project description.--A 
                                description of the types of projects 
                                the State will fund under the grant, 
                                including a good faith estimate of the 
                                number and characteristics of clients 
                                to be served under such projects and 
                                how the State intends to achieve at 
                                least 2 of the purposes described in 
                                paragraph (2).
                                    ``(II) Coordination efforts.--A 
                                description of how the State will 
                                coordinate and cooperate with State and 
                                local entities responsible for carrying 
                                out other programs that relate to the 
                                purposes intended to be achieved under 
                                the demonstration program, including as 
                                appropriate, entities responsible for 
                                carrying out jobs programs and programs 
                                serving children and families.
                                    ``(III) Records, reports, and 
                                audits.--An agreement to maintain such 
                                records, submit such reports, and 
                                cooperate with such reviews and audits 
                                as the Secretary finds necessary for 
                                purposes of oversight of the 
                                demonstration program.
                            ``(iii) Certifications.--The following 
                        certifications from the chief executive officer 
                        of the State:
                                    ``(I) A certification that the 
                                State will use funds provided under the 
                                grant to promote at least 2 of the 
                                purposes described in paragraph (2).
                                    ``(II) A certification that the 
                                State will return any unused funds to 
                                the Secretary in accordance with the 
                                reconciliation process under paragraph 
                                (4).
                                    ``(III) A certification that the 
                                funds provided under the grant will be 
                                used for programs and activities that 
                                target low-income participants and that 
                                not less than 50 percent of the 
                                participants in each program or 
                                activity funded under the grant shall 
                                be--
                                            ``(aa) parents of a child 
                                        who is, or within the past 24 
                                        months has been, a recipient of 
                                        assistance or services under a 
                                        State program funded under this 
                                        part and is described in 
                                        section 454(4)(A)(i); or
                                            ``(bb) parents, including 
                                        an expectant parent or a 
                                        married parent, whose income 
                                        (after adjustment for court-
                                        ordered child support paid or 
                                        received) does not exceed 150 
                                        percent of the poverty line.
                                    ``(IV) A certification that 
                                programs or activities funded under the 
                                grant will be provided with information 
                                regarding the prevention of domestic 
                                violence and that the State will 
                                consult with representatives of State 
                                and local domestic violence centers.
                                    ``(V) A certification that funds 
                                provided to a State under this 
                                subsection shall not be used to 
                                supplement or supplant other Federal, 
                                State, or local funds that are used to 
                                support programs or activities that are 
                                related to the purposes described in 
                                paragraph (2).
                    ``(C) Preferences and factors of consideration.--In 
                awarding grants under this subsection, the Secretary 
                shall take into consideration the following:
                            ``(i) Diversity of entities used to conduct 
                        programs and activities.--The Secretary shall, 
                        to the extent practicable, achieve a balance 
                        among the eligible States awarded grants under 
                        this subsection with respect to the size, urban 
                        or rural location, and employment of differing 
                        or unique methods of the entities that the 
                        States intend to use to conduct the programs 
                        and activities funded under the grants.
                            ``(ii) Priority for certain states.--The 
                        Secretary shall give priority to awarding 
                        grants to eligible States that have--
                                    ``(I) demonstrated progress in 
                                achieving at least 1 of the purposes 
                                described in paragraph (2) through 
                                previous State initiatives; or
                                    ``(II) demonstrated need with 
                                respect to reducing the incidence of 
                                out-of-wedlock births or absent fathers 
                                in the State.
            ``(2) Purposes.--The purposes described in this paragraph 
        are the following:
                    ``(A) Promoting responsible fatherhood through 
                marriage promotion.--To promote marriage or sustain 
                marriage through such activities as counseling, 
                mentoring, disseminating information about the benefits 
                of marriage and 2-parent involvement for 
children, enhancing relationship skills, education regarding how to 
control aggressive behavior, disseminating information on the causes of 
domestic violence and child abuse, marriage preparation programs, 
premarital counseling, marital inventories, skills-based marriage 
education, financial planning seminars, including improving a family's 
ability to effectively manage family business affairs by means such as 
education, counseling, or mentoring on matters related to family 
finances, including household management, budgeting, banking, and 
handling of financial transactions and home maintenance, and divorce 
education and reduction programs, including mediation and counseling.
                    ``(B) Promoting responsible fatherhood through 
                parenting promotion.--To promote responsible parenting 
                through such activities as counseling, mentoring, and 
                mediation, disseminating information about good 
                parenting practices, skills-based parenting education, 
                encouraging child support payments, and other methods.
                    ``(C) Promoting responsible fatherhood through 
                fostering economic stability of fathers.--To foster 
                economic stability by helping fathers improve their 
                economic status by providing such activities as work 
                first services, job search, job training, subsidized 
                employment, job retention, job enhancement, and 
                encouraging education, including career-advancing 
                education, dissemination of employment materials, 
                coordination with existing employment services such as 
                welfare-to-work programs, referrals to local employment 
                training initiatives, and other methods.
            ``(3) Restriction on use of funds.--No funds provided under 
        this subsection may be used for costs attributable to court 
        proceedings regarding matters of child visitation or custody, 
        or for legislative advocacy.
            ``(4) Reconciliation process.--
                    ``(A) 3-year availability of amounts allotted.--
                Each eligible State that receives a grant under this 
                subsection for a fiscal year shall return to the 
                Secretary any unused portion of the grant for such 
                fiscal year not later than the last day of the second 
                succeeding fiscal year, together with any earnings on 
                such unused portion.
                    ``(B) Procedure for redistribution.--The Secretary 
                shall establish an appropriate procedure for 
                redistributing to eligible entities that have expended 
                the entire amount of a grant made under this subsection 
                for a fiscal year any amount that is returned to the 
                Secretary by eligible States under subparagraph (A).
            ``(5) Amount of grants.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                amount of each grant awarded under this subsection 
                shall be an amount sufficient to implement the State 
                plan submitted under paragraph (1)(B)(ii).
                    ``(B) Minimum amounts.--No eligible State shall--
                            ``(i) in the case of the District of 
                        Columbia or a State other than the Commonwealth 
                        of Puerto Rico, the United States Virgin 
                        Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana Islands, 
                        receive a grant for a fiscal year in an amount 
                        that is less than $1,000,000; and
                            ``(ii) in the case of the Commonwealth of 
                        Puerto Rico, the United States Virgin Islands, 
                        Guam, American Samoa, and the Commonwealth of 
                        the Northern Mariana Islands, receive a grant 
                        for a fiscal year in an amount that is less 
                        than $500,000.
            ``(6) Definition of state.--In this subsection the term 
        `State' means each of the 50 States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands.
            ``(7) Authorization of Appropriations.--There is authorized 
        to be appropriated $20,000,000 for each of fiscal years 2004 
        through 2008 for purposes of making grants to States under this 
        subsection.
    ``(b) Grants to Eligible Entities To Conduct Demonstration 
Programs.--
            ``(1) Authority to award grants.--
                    ``(A) In general.--The Secretary shall award grants 
                to eligible entities to conduct demonstration programs 
                to carry out the purposes described in (a)(2).
                    ``(B) Eligible entity.--For purposes of this 
                subsection, an eligible entity is a local government, 
                local public agency, community-based or nonprofit 
                organization, or private entity, including any 
                charitable or faith-based organization that submits to 
                the Secretary the following:
                            ``(i) Application.--An application for a 
                        grant under this subsection, at such time, in 
                        such manner, and containing such information as 
                        the Secretary may require.
                            ``(ii) Project description.--A description 
                        of the programs or activities the entity 
                        intends to carry out with funds provided under 
                        the grant, including a good faith estimate of 
                        the number and characteristics of clients to be 
                        served under such programs or activities and 
                        how the entity intends to achieve at least 2 of 
                        the purposes described in subsection (a)(2).
                            ``(iii) Coordination efforts.--A 
                        description of how the entity will coordinate 
                        and cooperate with State and local entities 
                        responsible for carrying out other programs 
                        that relate to the purposes intended to be 
                        achieved under the demonstration program, 
                        including as appropriate, entities responsible 
                        for carrying out jobs programs and programs 
                        serving children and families.
                            ``(iv) Records, reports, and audits.--An 
                        agreement to maintain such records, submit such 
                        reports, and cooperate with such reviews and 
                        audits as the Secretary finds necessary for 
                        purposes of oversight of the demonstration 
                        program.
                            ``(v) Certifications.--The following 
                        certifications:
                                    ``(I) A certification that the 
                                entity will use funds provided under 
                                the grant to promote at least 2 of the 
                                purposes described in subsection 
                                (a)(2).
                                    ``(II) A certification that the 
                                entity will return any unused funds to 
                                the Secretary in accordance with the 
                                reconciliation process under paragraph 
                                (3).
                                    ``(III) A certification that the 
                                funds provided under the grant will be 
                                used for programs and activities that 
                                target low-income participants and that 
                                not less than 50 percent of the 
                                participants in each program or 
                                activity funded under the grant shall 
                                be--
                                            ``(aa) parents of a child 
                                        who is, or within the past 24 
                                        months has been, a recipient of 
                                        assistance or services under a 
                                        State program funded under this 
                                        part and is described in 
                                        section 454(4)(A)(i); or
                                            ``(bb) parents, including 
                                        an expectant parent or a 
                                        married parent, whose income 
                                        (after adjustment for court-
                                        ordered child support paid or 
                                        received) does not exceed 150 
                                        percent of the poverty line.
                                    ``(IV) A certification that the 
                                entity will consult with 
                                representatives of State and local 
                                domestic violence centers.
                                    ``(V) A certification that funds 
                                provided to an entity under this 
                                subsection shall not be used to 
                                supplement or supplant other Federal, 
                                State, or local funds provided to the 
                                entity that are used to support 
                                programs or activities that are related 
                                to the purposes described in subsection 
                                (a)(2).
                    ``(C) Preferences and factors of consideration.--In 
                awarding grants under this subsection, the Secretary 
                shall, to the extent practicable, achieve a balance 
                among the eligible entities awarded grants under this 
                subsection with respect to the size, urban or rural 
                location, and employment of differing or unique methods 
                of the entities.
            ``(2) Restriction on use of funds.--No funds provided under 
        this subsection may be used for costs attributable to court 
        proceedings regarding matters of child visitation or custody, 
        or for legislative advocacy.
            ``(3) Reconciliation process.--
                    ``(A) 3-year availability of amounts allotted.--
                Each eligible entity that receives a grant under this 
                subsection for a fiscal year shall return to the 
                Secretary any unused portion of the grant for such 
                fiscal year not later than the last day of the second 
                succeeding fiscal year, together with any earnings on 
                such unused portion.
                    ``(B) Procedure for redistribution.--The Secretary 
                shall establish an appropriate procedure for 
                redistributing to eligible entities that have expended 
                the entire amount of a grant made under this subsection 
                for a fiscal year any amount that is returned to the 
                Secretary by eligible entities under subparagraph (A).
            ``(4) Authorization of Appropriations.--There is authorized 
        to be appropriated $30,000,000 for each of fiscal years 2004 
        through 2008 for purposes of making grants to eligible entities 
        under this subsection.''.

SEC. 242. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD PROGRAMS.

    Section 469C of the Social Security Act, as added by section 241, 
is amended by adding at the end the following:
    ``(c) Media Campaign National Clearinghouse for Responsible 
Fatherhood.--
            ``(1) Media campaign and national clearinghouse.--
                    ``(A) In general.--From any funds appropriated 
                under paragraph (3), the Secretary shall contract with 
                a nationally recognized, nonprofit fatherhood promotion 
                organization described in paragraph (2) to--
                            ``(i) develop, promote, and distribute to 
                        interested States, local governments, public 
                        agencies, and private entities a media campaign 
                        that encourages the appropriate involvement of 
                        both parents in the life of any child of the 
                        parents, with a priority for programs that 
                        specifically address the issue of responsible 
                        fatherhood; and
                            ``(ii) develop a national clearinghouse to 
                        assist States and communities in efforts to 
                        promote and support marriage and responsible 
                        fatherhood by collecting, evaluating, and 
                        making available (through the Internet and by 
                        other means) to other States information 
                        regarding the media campaigns established under 
                        subsection (d).
                    ``(B) Coordination with domestic violence 
                programs.--The Secretary shall ensure that the 
                nationally recognized nonprofit fatherhood promotion 
                organization with a contract under subparagraph (A) 
                coordinates the media campaign developed under clause 
                (i) of such paragraph and the national clearinghouse 
                developed under clause (ii) of such paragraph with a 
                national, State, or local domestic violence program.
            ``(2) Nationally recognized, nonprofit fatherhood promotion 
        organization described.--The nationally recognized, nonprofit 
        fatherhood promotion organization described in this paragraph 
        is an organization that has at least 4 years of experience in--
                    ``(A) designing and disseminating a national public 
                education campaign, as evidenced by the production and 
                successful placement of television, radio, and print 
                public service announcements that promote the 
                importance of responsible fatherhood, a track record of 
                service to Spanish-speaking populations and 
                historically underserved or minority populations, the 
                capacity to fulfill requests for information and a 
                proven history of fulfilling such requests, and a 
                mechanism through which the public can request 
                additional information about the campaign; and
                    ``(B) providing consultation and training to 
                community-based organizations interested in 
                implementing fatherhood outreach, support, or skill 
                development programs with an emphasis on promoting 
                married fatherhood as the ideal.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated $5,000,000 for each of fiscal years 2004 
        through 2008 to carry out this subsection.''.

SEC. 243. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.

    (a) In General.--Section 469C of the Social Security Act, as added 
by section 241 and amended by section 242, is amended by adding at the 
end the following:
    ``(d) Block Grants to States for Media Campaigns Promoting 
Responsible Fatherhood.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Broadcast advertisement.--The term `broadcast 
                advertisement' means a communication intended to be 
                aired by a television or radio broadcast station, 
                including a communication intended to be transmitted 
                through a cable channel.
                    ``(B) Child at risk.--The term `child at risk' 
                means each young child whose family income does not 
                exceed the poverty line.
                    ``(C) Poverty line.--The term `poverty line' has 
                the meaning given such term in section 673(2) of the 
                Omnibus Budget Reconciliation Act of 1981 (including 
                any revision required by such section) that is 
                applicable to a family of the size involved.
                    ``(D) Printed or other advertisement.--The term 
                `printed or other advertisement' includes any 
                communication intended to be distributed through a 
                newspaper, magazine, outdoor advertising facility, 
                mailing, or any other type of general public 
                advertising, but does not include any broadcast 
                advertisement.
                    ``(E) State.--The term `State' means each of the 50 
                States, the District of Columbia, the Commonwealth of 
                Puerto Rico, the United States Virgin Islands, Guam, 
                American Samoa, and the Commonwealth of the Northern 
                Mariana Islands.
                    ``(F) Young child.--The term `young child' means an 
                individual under age 5.
            ``(2) State certifications.--Not later than October 1 of 
        each of fiscal year for which a State desires to receive an 
        allotment under this subsection, the chief executive officer of 
        the State shall submit to the Secretary a certification that 
        the State shall--
                    ``(A) use such funds to promote the formation and 
                maintenance of married 2-parent families, strengthen 
                fragile families, and promote responsible fatherhood 
                through media campaigns conducted in accordance with 
                the requirements of paragraph (4);
                    ``(B) return any unused funds to the Secretary in 
                accordance with the reconciliation process under 
                paragraph (5); and
                    ``(C) comply with the reporting requirements under 
                paragraph (6).
            ``(3) Payments to states.--For each of fiscal years 2004 
        through 2008, the Secretary shall pay to each State that 
        submits a certification under paragraph (2), from any funds 
        appropriated under paragraph (8), for the fiscal year an amount 
        equal to the amount of the allotment determined for the fiscal 
        year under paragraph (7).
            ``(4) Establishment of media campaigns.--Each State 
        receiving an allotment under this subsection for a fiscal year 
        shall use the allotment to conduct media campaigns as follows:
                    ``(A) Conduct of media campaigns.--
                            ``(i) Radio and television media 
                        campaigns.--
                                    ``(I) Production of broadcast 
                                advertisements.--At the option of the 
                                State, to produce broadcast 
                                advertisements that promote the 
                                formation and maintenance of married 2-
                                parent families, strengthen fragile 
                                families, and promote responsible 
                                fatherhood.
                                    ``(II) Air-time challenge 
                                program.--At the option of the State, 
                                to establish an air-time challenge 
                                program under which the State may spend 
                                amounts allotted under this section to 
                                purchase time from a broadcast station 
                                to air a broadcast advertisement 
                                produced under clause (i), but only if 
                                the State obtains an amount of time of 
                                the same class and during a comparable 
                                period to air the advertisement using 
                                non-Federal contributions.
                            ``(ii) Other media campaigns.--At the 
                        option of the state, to conduct a media 
                        campaign that consists of the production and 
                        distribution of printed or other advertisements 
                        that promote the formation and maintenance of 
                        married 2-parent families, strengthen fragile 
                        families, and promote responsible fatherhood.
                    ``(B) Administration of media campaigns.--A State 
                may administer media campaigns funded under this 
                subsection directly or through grants, contracts, or 
                cooperative agreements with public agencies, local 
                governments, or private entities, including charitable 
                and faith-based organizations.
                    ``(C) Consultation with domestic violence 
                assistance centers.--In developing broadcast and 
                printed advertisements to be used in the media 
                campaigns conducted under subparagraph (A), the State 
                or other entity administering the campaign shall 
                consult with representatives of State and local 
                domestic violence centers.
                    ``(D) Non-federal contributions.--In this 
                subsection, the term `non-Federal contributions' 
                includes contributions by the State and by public and 
                private entities. Such contributions may be in cash or 
                in kind. Such term does not include any amounts 
                provided by the Federal Government, or services 
                assisted or subsidized to any significant extent by the 
                Federal Government, or any amount expended by a State 
                before October 1, 2003.
            ``(5) Reconciliation process.--
                    ``(A) 3-year availability of amounts allotted.--
                Each State that receives an allotment under this 
                subsection shall return to the Secretary any unused 
                portion of the amount allotted to a State for a fiscal 
                year not later than the last day of the second 
                succeeding fiscal year together with any earnings on 
                such unused portion.
                    ``(B) Procedure for redistribution of unused 
                allotments.--The Secretary shall establish an 
                appropriate procedure for redistributing to States that 
                have expended the entire amount allotted under this 
                subsection any amount that is--
                            ``(i) returned to the Secretary by States 
                        under subparagraph (A); or
                            ``(ii) not allotted to a State under this 
                        section because the State did not submit a 
                        certification under paragraph (2) by October 1 
                        of a fiscal year.
            ``(6) Reporting requirements.--
                    ``(A) Monitoring and evaluation.--Each State 
                receiving an allotment under this subsection for a 
                fiscal year shall monitor and evaluate the media 
                campaigns conducted using funds made available under 
                this subsection in such manner as the Secretary, in 
                consultation with the States, determines appropriate.
                    ``(B) Annual reports.--Not less frequently than 
                annually, each State receiving an allotment under this 
                subsection for a fiscal year shall submit to the 
                Secretary reports on the media campaigns conducted 
                under this subsection at such time, in such manner, and 
                containing such information as the Secretary may 
                require.
            ``(7) Amount of allotments.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), of the amount appropriated for the 
                purpose of making allotments under this subsection for 
                a fiscal year, the Secretary shall allot to each State 
                that submits a certification under paragraph (2) for 
                the fiscal year an amount equal to the sum of--
                            ``(i) the amount that bears the same ratio 
                        to 50 percent of such funds as the number of 
                        young children in the State (as determined by 
                        the Secretary based on the most recent March 
                        supplement to the Current Population Survey of 
                        the Bureau of the Census before the beginning 
                        of the calendar year in which such fiscal year 
                        begins) as bears to the number of such children 
                        in all States; and
                            ``(ii) the amount that bears the same ratio 
                        to 50 percent of such funds as the number of 
                        children at risk in the State (as determined by 
                        the Secretary based on the most recent March 
                        supplement to the Current Population Survey of 
                        the Bureau of the Census before the beginning 
                        of the calendar year in which such fiscal year 
                        begins) bears to the number of such children in 
                        all States.
                    ``(B) Minimum allotments.--No allotment for a 
                fiscal year under this subsection shall be less than--
                            ``(i) in the case of the District of 
                        Columbia or a State other than the Commonwealth 
                        of Puerto Rico, the United States Virgin 
                        Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana Islands, 1 
                        percent of the amount appropriated for the 
                        fiscal year under paragraph (8); and
                            ``(ii) in the case of the Commonwealth of 
                        Puerto Rico, the United States Virgin Islands, 
                        Guam, American Samoa, and the Commonwealth of 
                        the Northern Mariana Islands, 0.5 percent of 
                        such amount.
                    ``(C) Pro rata reductions.--The Secretary shall 
                make such pro rata reductions to the allotments 
                determined under subparagraph (A) as are necessary to 
                comply with the requirements of subparagraph (B).
            ``(8) Authorization of appropriations.--There is authorized 
        to be appropriated $20,000,000 for each of fiscal years 2004 
        through 2008 for purposes of making allotments to States under 
        this subsection.''.
    (b) Evaluation.--
            (1) In general.--The Secretary of Health and Human Services 
        shall conduct an evaluation of the impact of the media 
        campaigns funded under section 469C(d) of the Social Security 
        Act, as added by subsection (a).
            (2) Report.--Not later than December 31, 2006, the 
        Secretary of Health and Human Services shall report to Congress 
        the results of the evaluation under paragraph (1).
            (3) Funding.--Of the amount appropriated in accordance with 
        section 469C(d)(8) of the Social Security Act (as added by 
        subsection (a)) for fiscal year 2004, $1,000,000 of such amount 
        shall be transferred and made available for purposes of 
        conducting the evaluation required under this subsection, and 
        shall remain available until expended.

                      TITLE III--STATE FLEXIBILITY

SEC. 301. STATE OPTION TO ASSIST LEGAL IMMIGRANT FAMILIES.

    (a) State Option.--
            (1) In general.--Section 403(c)(2) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (8 U.S.C. 1613(c)(2)) is amended by adding at the end the 
        following:
                    ``(M) At State option, assistance, benefits, or 
                services under a State program funded under part A of 
                title IV of the Social Security Act (42 U.S.C. 601 et 
                seq.).''.
            (2) Conforming amendment.--Section 408(e) (42 U.S.C. 
        608(e)) is amended to read as follows:
    ``(e) Eligibility of Certain Aliens.--Except as provided in 
subsection (f), at State option, a State may provide assistance, 
benefits, or services to a qualified alien (as defined in subsections 
(b) and (c) of section 431 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641)) under the State 
program funded under this part in the same manner and to the same 
extent as a citizen of the United States would be provided such 
assistance, benefits, or services.''.
    (b) Attribution of Sponsor's Income and Resources to Aliens.--
            (1) In general.--Section 408(f) (42 U.S.C. 608(f)) is 
        amended--
                    (A) in the heading, by striking ``Non-213A'' and 
                inserting ``Sponsored'';
                    (B) by striking ``The following'' and all that 
                follows through the colon and inserting ``The following 
                rules shall apply in determining whether an alien 
                sponsored under section 213A of the Immigration and 
                Nationality Act (and, at the option of the State, a 
                non-213A alien) is eligible for cash assistance under 
                the State program funded under this part, or in 
                determining the amount of such assistance to be 
                provided to a sponsored alien:'';
                    (C) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``non-213A'' and inserting 
                        ``sponsored'';
                            (ii) in subparagraph (B), by inserting 
                        ``(or, a greater amount as determined by the 
                        State)'' before the period; and
                            (iii) in the heading of subparagraph (C), 
                        by striking ``non-213a'' and inserting 
                        ``sponsored'';
                    (D) by striking paragraph (5) and inserting the 
                following:
            ``(5) Exceptions.--This subsection shall not apply to an 
        alien who is--
                    ``(A) a minor child if the sponsor of the alien or 
                any spouse of the sponsor is a parent of the alien 
                child; or
                    ``(B) described in subsection (e) or (f) of section 
                421 of the Personal Responsibility and Work Opportunity 
                Reconciliation Act of 1996 (8 U.S.C. 1631).''; and
                    (E) by adding at the end the following:
            ``(7) Inapplicability to family members who are not 
        sponsored aliens.--Income and resources of a sponsor which are 
        deemed under this subsection to be the income and resources of 
        any alien individual in a family shall not be considered in 
        determining the need of other family members except to the 
        extent such income or resources are actually available to such 
        other family members.
            ``(8) Rule of construction.--For purposes of section 421 of 
        the Personal Responsibility and Work Opportunity Reconciliation 
        Act of 1996 (8 U.S.C. 1631), the State program funded under 
        this part is not a Federal means-tested public benefits 
        program.''.
            (2) Conforming amendments.--Section 423(d) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (8 U.S.C. 1183a note) is amended by adding at the end the 
following:
            ``(12) Assistance, benefits, or services under part A of 
        title IV of the Social Security Act except for cash assistance 
        provided to a sponsored alien who is subject to deeming 
        pursuant to section 408(f) of that Act.''.
    (c) State Authority To Provide State and Local Public Benefits for 
Certain Aliens.--Section 411(d) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1621(d)) is amended--
            (1) in the heading, by inserting ``and Other'' before 
        ``Aliens''; and
            (2) by inserting ``or who otherwise is not a qualified 
        alien (as defined in subsections (b) and (c) of section 431)'' 
        after ``United States''.

SEC. 302. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID 
              PROGRAM AND TITLE XXI.

    (a) Medicaid Program.--Section 1903(v) (42 U.S.C. 1396b(v)) is 
amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraphs (2) and (4)''; and
            (2) by adding at the end the following:
    ``(4)(A) A State may elect (in a plan amendment under this title) 
to provide medical assistance under this title for aliens who are 
lawfully residing in the United States (including battered aliens 
described in section 431(c) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996) and who are otherwise eligible 
for such assistance, within any of the following eligibility 
categories:
            ``(i) Pregnant women.--Women during pregnancy (and during 
        the 60-day period beginning on the last day of the pregnancy).
            ``(ii) Children.--Children (as defined under such plan), 
        including optional targeted low-income children described in 
        section 1905(u)(2)(B).
    ``(B)(i) In the case of a State that has elected to provide medical 
assistance to a category of aliens under subparagraph (A), no debt 
shall accrue under an affidavit of support against any sponsor of such 
an alien on the basis of provision of assistance to such category and 
the cost of such assistance shall not be considered as an unreimbursed 
cost.
    ``(ii) The provisions of sections 401(a), 402(b), 403, and 421 of 
the Personal Responsibility and Work Opportunity Reconciliation Act of 
1996 shall not apply to a State that makes an election under 
subparagraph (A).''.
    (b) Title XXI.--Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is 
amended by adding at the end the following:
                    ``(E) Section 1903(v)(4) (relating to optional 
                coverage of permanent resident alien children), but 
                only if the State has elected to apply such section to 
                that category of children under title XIX.''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2003, and apply to medical assistance and child 
health assistance furnished on or after such date.

SEC. 303. 5-YEAR EXTENSION AND SIMPLIFICATION OF THE TRANSITIONAL 
              MEDICAL ASSISTANCE PROGRAM (TMA).

    (a) Option of Continuous Eligibility for 12 Months; Option of 
Continuing Coverage for up to an Additional Year.--
            (1) Option of continuous eligibility for 12 months by 
        making reporting requirements optional.--Section 1925(b) (42 
        U.S.C. 1396r-6(b)) is amended--
                    (A) in paragraph (1), by inserting ``, at the 
                option of a State,'' after ``and which'';
                    (B) in paragraph (2)(A), by inserting ``Subject to 
                subparagraph (C):'' after ``(A) Notices.--'';
                    (C) in paragraph (2)(B), by inserting ``Subject to 
                subparagraph (C):'' after ``(B) Reporting 
                requirements.--'';
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(C) State option to waive notice and reporting 
                requirements.--A State may waive some or all of the 
                reporting requirements under clauses (i) and (ii) of 
                subparagraph (B). Insofar as it waives such a reporting 
                requirement, the State need not provide for a notice 
                under subparagraph (A) relating to such requirement.''; 
                and
                    (E) in paragraph (3)(A)(iii), by inserting ``the 
                State has not waived under paragraph (2)(C) the 
                reporting requirement with respect to such month under 
                paragraph (2)(B) and if'' after ``6-month period if''.
            (2) State option to extend eligibility for low-income 
        individuals for up to 12 additional months.--Section 1925 (42 
        U.S.C. 1396r-6) is further amended--
                    (A) by redesignating subsections (c) through (f) as 
                subsections (d) through (g), respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection:
    ``(c) State Option of up to 12 Months of Additional Eligibility.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, each State plan approved under this title may 
        provide, at the option of the State, that the State shall offer 
        to each family which received assistance during the entire 6-
        month period under subsection (b) and which meets the 
        applicable requirement of paragraph (2), in the last month of 
        the period the option of extending coverage under this 
        subsection for the succeeding period not to exceed 12 months.
            ``(2) Income restriction.--The option under paragraph (1) 
        shall not be made available to a family for a succeeding period 
        unless the State determines that the family's average gross 
        monthly earnings (less such costs for such child care as is 
        necessary for the employment of the caretaker relative) as of 
        the end of the 6-month period under subsection (b) does not 
        exceed 185 percent of the official 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) applicable to a family of the size 
        involved.
            ``(3) Application of extension rules.--The provisions of 
        paragraphs (2), (3), (4), and (5) of subsection (b) shall apply 
        to the extension provided under this subsection in the same 
        manner as they apply to the extension provided under subsection 
        (b)(1), except that for purposes of this subsection--
                    ``(A) any reference to a 6-month period under 
                subsection (b)(1) is deemed a reference to the 
                extension period provided under paragraph (1) and any 
                deadlines for any notices or reporting and the premium 
                payment periods shall be modified to correspond to the 
                appropriate calendar quarters of coverage provided 
                under this subsection; and
                    ``(B) any reference to a provision of subsection 
                (a) or (b) is deemed a reference to the corresponding 
                provision of subsection (b) or of this subsection, 
                respectively.''.
    (b) State Option To Waive Receipt of Medicaid for 3 of Previous 6 
Months To Qualify for TMA.--Section 1925(a)(1) (42 U.S.C. 1396r-
6(a)(1)) is amended by adding at the end the following: ``A State may, 
at its option, also apply the previous sentence in the case of a family 
that was receiving such aid for fewer than 3 months, or that had 
applied for and was eligible for such aid for fewer than 3 months, 
during the 6 immediately preceding months described in such 
sentence.''.
    (c) 5-Year Extension of Sunset for TMA.--
            (1) In general.--Subsection (g) of section 1925 (42 U.S.C. 
        1396r-6), as redesignated under subsection (a)(2)(A), and as 
        amended by section 7 of the Welfare Reform Extension Act of 
        2003 (Public Law 108-040), is amended by striking ``2003'' and 
        inserting ``2008''.
            (2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C. 
        1396a(e)(1)(B)), as so amended, is amended by striking ``2003'' 
        and inserting ``2008''.
    (d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 (42 U.S.C. 1396r-6), as amended by subsections (a)(2)(A) 
and (c), is amended by inserting after subsection (f) the following:
    ``(g) Additional Provisions.--
            ``(1) Collection and reporting of participation 
        information.--Each State shall--
                    ``(A) collect and submit to the Secretary, in a 
                format specified by the Secretary, information on 
                average monthly enrollment and average monthly 
                participation rates for adults and children under this 
                section; and
                    ``(B) make such information publicly available.
        Such information shall be submitted under subparagraph (A) at 
        the same time and frequency in which other enrollment 
        information under this title is submitted to the Secretary. 
        Using such information, the Secretary shall submit to Congress 
        annual reports concerning such rates.''.
    (e) Coordination of Work.--Section 1925(g) (42 U.S.C. 1396r-6(g)), 
as added by subsection (d), is amended by adding at the end the 
following new paragraph:
            ``(2) Coordination with administration for children and 
        families.--The Administrator of the Centers for Medicare & 
        Medicaid Services, in carrying out this section, shall work 
        with the Assistant Secretary for the Administration for 
        Children and Families to develop guidance or other technical 
        assistance for States regarding best practices in guaranteeing 
access to transitional medical assistance under this section.''.
    (f) Elimination of TMA Requirement for States That Extend Coverage 
to Children and Parents Through 185 Percent of Poverty.--
            (1) In general.--Section 1925 (42 U.S.C. 1396r-6) is 
        further amended by inserting after subsection (g), as added by 
        subsection (d), the following:
    ``(h) Provisions Optional for States That Extend Coverage to 
Children and Parents Through 185 Percent of Poverty.--A State may meet 
(but is not required to meet) the requirements of subsections (a) and 
(b) if it provides for medical assistance under section 1931 to 
families (including both children and caretaker relatives) the average 
gross monthly earning of which (less such costs for such child care as 
is necessary for the employment of a caretaker relative) is at or below 
a level that is at least 185 percent of the official 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) applicable to a family of the size involved.''.
            (2) Conforming amendments.--Section 1925 (42 U.S.C. 1396r-
        6) is further amended, in subsections (a)(1) and (b)(1), by 
        inserting ``, but subject to subsection (h),'' after 
        ``Notwithstanding any other provision of this title,'' each 
        place it appears.
    (g) Requirement of Notice for All Families Losing TANF.--Subsection 
(a)(2) of section 1925 (42 U.S.C. 1396r-6) is amended by adding at the 
end the following flush sentences:
        ``Each State shall provide, to families whose aid under part A 
        or E of title IV has terminated but whose eligibility for 
        medical assistance under this title continues, written notice 
        of their ongoing eligibility for such medical assistance. If a 
        State makes a determination that any member of a family whose 
        aid under part A or E of title IV is being terminated is also 
        no longer eligible for medical assistance under this title, the 
        notice of such determination shall be supplemented by a 1-page 
        notification form describing the different ways in which 
        individuals and families may qualify for such medical 
        assistance and explaining that individuals and families do not 
        have to be receiving aid under part A or E of title IV in order 
        to qualify for such medical assistance. Such notice shall 
        further be supplemented by information on how to apply for 
        child health assistance under the State children's health 
        insurance program under title XXI and how to apply for medical 
        assistance under this title.''.
    (h) Extending Use of Outstationed Workers To Accept Applications 
for Transitional Medical Assistance.--Section 1902(a)(55) (42 U.S.C. 
1396a(a)(55)) is amended by inserting ``and under section 1931'' after 
``(a)(10)(A)(ii)(IX)''.
    (i) Effective Dates.--
            (1) In general.--Except as provided in this subsection, the 
        amendments made by this section shall apply to calendar 
        quarters beginning on or after October 1, 2003.
            (2) Notice.--The amendment made by subsection (g) shall 
        take effect 6 months after the date of enactment of this Act.
            (3) Delay permitted for state plan amendment.--In the case 
        of a State plan for medical assistance under title XIX of the 
        Social Security Act which 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 made by 
        this section, the State plan shall not be regarded as failing 
        to comply with the requirements of such title solely on the 
        basis of its failure to meet these 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 enactment of this 
        Act. For purposes of the previous sentence, in the case of a 
        State that has a 2-year legislative session, each year of such 
        session shall be deemed to be a separate regular session of the 
        State legislature.

SEC. 304. DEFINITION OF ASSISTANCE.

    Section 419 (42 U.S.C. 619) is amended by adding at the end the 
following:
            ``(6) Assistance.--
                    ``(A) In general.--The term `assistance' means cash 
                benefits and does not include child care or other 
                support services.
                    ``(B) Exception.--The term `assistance' does not 
                include a payment to or for an individual or family on 
                a short-term, nonrecurring basis (as defined by the 
                State in accordance with regulations prescribed by the 
                Secretary) or any other benefit or service excluded 
                from the definition of assistance under section 260.31 
                of title 45 of the Code of Federal Regulations (as in 
                effect on June 1, 2002).''.

SEC. 305. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS 
              CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS 
              AND SERVICES.

    Section 404(e) (42 U.S.C. 604(e)) is amended to read as follows:
    ``(e) Authority To Carry Over Certain Amounts for Benefits or 
Services or for Future Contingencies.--A State or tribe may use a grant 
made to the State or tribe under this part for any fiscal year to 
provide, without fiscal year limitation, any benefit or service that 
may be provided under the State or tribal program funded under this 
part.''.

SEC. 306. AUTHORITY TO USE TANF FUNDS FOR HOUSING BENEFITS.

    (a) In General.--Section 404 (42 U.S.C. 604) is amended by 
inserting at the end the following:
    ``(l) Use of Funds for Supplemental Housing Benefits.--
            ``(1) In general.--The provision by a State of supplemental 
        housing benefits to or on behalf of an individual eligible for 
        assistance under the State program funded under this part, 
        using funds from a grant made under section 403(a) of this 
        title, shall not be considered to be the provision of 
        assistance to the individual under the State program 
funded under this part for any purpose except in determining the 
allowability of the expenditure under section 401(a)(1).
            ``(2) Permitted use of funds.--A State may not use any part 
        of the funds from a grant made under section 403 to supplant 
        rather than supplement State expenditures on housing-related 
        programs.
            ``(3) Definition of supplemental housing benefits.--In this 
        subsection, the term `supplemental housing benefits' means 
        payments made to or on behalf of an individual to reduce or 
        reimburse the costs incurred by the individual for housing 
        accommodations, and the receipt of which does not reduce the 
        amount of assistance, benefits, or services an individual would 
        otherwise receive under the State program funded under this 
        part or under a program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)).''.
    (b) State Plan.--Section 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is 
amended by adding at the end the following:
                            ``(v) The document shall describe--
                                    ``(I) the primary problems that 
                                families receiving assistance and 
                                families who have recently stopped 
                                receiving assistance under the State 
                                program funded under this part 
                                experience in securing and retaining 
                                adequate, affordable housing and the 
                                estimated extent of each such problem, 
                                including the price of such housing in 
                                various areas of the State that include 
                                a large proportion of recipients of 
                                assistance under the State program;
                                    ``(II) the steps that have been and 
                                will be taken by the State and other 
                                public or private entities that 
                                administer housing programs in the 
                                State to address the problems described 
                                in subclause (I);
                                    ``(III) the methods the State has 
                                adopted to identify barriers to work 
                                posed by the living arrangement, 
                                housing cost, and housing location of 
                                families eligible for the State program 
                                funded under this part; and
                                    ``(IV) the services and benefits 
                                that have been or will be provided by 
                                the State or other public or private 
                                entities to help families overcome the 
                                barriers so identified.''.

                 TITLE IV--RESOURCES AND ACCOUNTABILITY

SEC. 401. REAUTHORIZATION OF STATE FAMILY ASSISTANCE GRANTS.

    (a) In General.--Section 403(a)(1) (42 U.S.C. 603(a)(1)), as 
amended by section 3(a) of the Welfare Reform Extension Act of 2003 
(Public Law 108-040), is amended--
            (1) in subparagraph (A), by striking ``1996'' and all that 
        follows through ``2003'' and inserting ``2004 through 2008''; 
        and
            (2) in subparagraph (C), by striking ``for fiscal year 
        2003'' and inserting ``for each of fiscal years 2004 through 
        2008''.
    (b) Direct Funding and Administration by Indian Tribes.--
            (1) Tribal family assistance grant.--Section 412(a)(1)(A) 
        (42 U.S.C. 612(a)(1)(A)), as amended by section 3(h) of the 
        Welfare Reform Extension Act of 2003 (Public Law 108-040), is 
        amended by striking ``1997, 1998, 1999, 2000, 2001, 2002, and 
        2003'' and inserting ``2004 through 2008''.
            (2) Grants for indian tribes that received jobs funds.--
        Section 412(a)(2)(A) (42 U.S.C. 612(a)(2)(A)), as so amended, 
        is amended by striking ``1997, 1998, 1999, 2000, 2001, 2002, 
        and 2003'' and inserting ``2004 through 2008''.
    (c) Matching Grants for the Territories.--Section 1108(b)(2) (42 
U.S.C. 1308(b)(2)), as so amended, is amended by striking ``1997 
through 2003'' and inserting ``2004 through 2008''.
    (d) Maintenance of Effort Penalty.--Section 409(a)(7) (42 U.S.C. 
609(a)(7)), as amended by section 3(g) of the Welfare Reform Extension 
Act of 2003 (Public Law 108-040) is amended--
            (1) in subparagraph (A) by striking ``fiscal year 1998, 
        1999, 2000, 2001, 2002, 2003, or 2004'' and inserting ``fiscal 
        year 2004, 2005, 2006, 2007, 2008, or 2009''; and
            (2) in subparagraph (B)(ii), by striking ``1997 through 
        2003'' and inserting ``2004 through 2008''.
    (e) Federal Loans for State Welfare Programs.--Section 406(d) (42 
U.S.C. 606(d), as amended by section 3(f) of the Welfare Reform 
Extension Act of 2003 (Public Law 108-040) is amended by striking 
``1997 through 2003'' and inserting ``2004 through 2008''.

SEC. 402. REAUTHORIZATION OF SUPPLEMENTAL GRANTS FOR POPULATION 
              INCREASES.

    Section 403(a)(3)(H) (42 U.S.C. 603(a)(3)(H)), as amended by 
section 3(d) of the Welfare Reform Extension Act of 2003 (Public Law 
108-040), is amended--
            (1) in the subparagraph heading, by striking ``of grants 
        for fiscal year 2002'';
            (2) in clause (i), by striking ``2002 and 2003'' and 
        inserting ``2004 through 2008'';
            (3) in clause (ii), by striking ``2003'' and inserting 
        ``2008''; and
            (4) in clause (iii), by striking ``2002 and 2003'' and 
        inserting ``2004 through 2008''.

SEC. 403. CONTINGENCY FUND.

    (a) Contingency Funding Available to Needy States.--Section 403(b) 
(42 U.S.C. 603(b)) is amended--
            (1) by striking paragraphs (1) through (3) and inserting 
        the following:
            ``(1) Contingency fund grants.--
                    ``(A) Payments.--Subject to subparagraph (C), each 
                State shall receive a contingency fund grant for each 
                eligible month in which the State is a needy State 
under paragraph (3).
                    ``(B) Monthly contingency fund grant amount.--For 
                each eligible month in which a State is a needy State, 
                the State shall receive a contingency fund grant equal 
                to the higher of $0 and the applicable percentage (as 
                defined in subparagraph (D)(i)) of the product of--
                            ``(i) the estimated cost of an additional 
                        recipient family (as defined in subparagraph 
                        (D)(ii)); and
                            ``(ii) the increase in the number of 
                        families receiving assistance under the State 
                        program funded under this part or a program 
                        funded with qualified State expenditures (as 
                        defined in subparagraph (D)(iv)).
                    ``(C) Limitation.--The total amount paid to a 
                single State under subparagraph (A) during a fiscal 
                year shall not exceed the amount equal to 15 percent of 
                the State family assistance grant (as defined under 
                subparagraph (B) of subsection (a)(1) and increased 
                under subparagraph (E) of that subsection).
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Applicable percentage.--The term 
                        `applicable percentage' means the higher of--
                                    ``(I) 75 percent; and
                                    ``(II) the sum of the Federal 
                                medical assistance percentage for the 
                                State (as defined in section 1905(b)) 
                                plus 8 percentage points.
                            ``(ii) Estimated cost of an additional 
                        recipient family.--The term `estimated cost of 
                        an additional recipient family' means the 
                        amount equal to 120 percent of the basic 
                        assistance cost (as defined under clause (iii)) 
                        for families receiving assistance under the 
                        State program funded under this part or under a 
                        program funded with qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)).
                            ``(iii) Basic assistance cost.--
                                    ``(I) In general.--The term `basic 
                                assistance cost' means the amount equal 
                                to the maximum cash assistance grant 
                                for a family consisting of 3 
                                individuals under the State program 
                                funded under this part.
                                    ``(II) Rule for states with more 
                                than 1 maximum level.--In the case of a 
                                State that has more than 1 maximum cash 
                                assistance grant level for families 
                                consisting of 3 individuals, the basic 
                                assistance cost shall be the amount 
                                equal to the maximum cash assistance 
                                grant level applicable to the largest 
                                number of families consisting of 3 
                                individuals receiving assistance under 
                                the State program funded under this 
                                part or a State program funded with 
                                qualified State expenditures (as 
                                defined in section 409(a)(7)(B)(i)).
                            ``(iv) Increase in the number of families 
                        receiving assistance under the state program 
                        funded under this part or a program funded with 
                        qualified state expenditures.--The term 
                        `increase in the number of families receiving 
                        assistance under the State program funded under 
                        this part or a program funded with qualified 
                        State expenditures' means the increase in--
                                    ``(I) the number of families 
                                receiving assistance under the State 
                                program funded under this part and 
                                under a program funded with qualified 
                                State expenditures (as defined in 
                                section 409(a)(7)(B)(i)) in the most 
                                recent month for which data from the 
                                State are available; as compared to
                                    ``(II) the lower of the average 
                                monthly number of families receiving 
                                such assistance in either of the 2 
                                completed fiscal years immediately 
                                preceding the fiscal year in which the 
                                State qualifies as a needy State.
                    ``(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for the period of 
                fiscal years 2004 through 2008, such sums as are 
                necessary for making contingency fund grants under this 
                subsection in a total amount not to exceed 
                $2,000,000,000.'';
            (2) by redesignating paragraph (4) as paragraph (2); and
            (3) in paragraph (2), as so redesignated--
                    (A) by striking ``(3)(A)'' and inserting ``(1)''; 
                and
                    (B) by striking ``2-month'' and inserting ``3-
                month''.
    (b) Modification of Definition of Needy State.--Section 403(b) (42 
U.S.C. 603(b)) is further amended--
            (1) by striking paragraphs (5) through (7);
            (2) by redesignating paragraph (8) as paragraph (5); and
            (3) by inserting after paragraph (2) (as redesignated by 
        subsection (a)(2)) the following:
            ``(3) Initial determination of whether a state qualifies as 
        a needy state.--
                    ``(A) In general.--For purposes of paragraph (1), a 
                State will be initially determined to be a needy State 
                for a month if the State satisfies at least 2 of the 
                following:
                            ``(i) The--
                                    ``(I) average rate of total 
                                unemployment in the State for the 
                                period consisting of the most recent 3 
                                months for which data are available has 
                                increased by the lesser of 1.5 
                                percentage points or by 50 percent over 
                                the corresponding 3-month period in 
                                either of the 2 most recent preceding 
                                fiscal years; or
                                    ``(II) average insured unemployment 
                                rate for the most recent 3 months for 
                                which data are available has increased 
                                by 1 percentage point over the 
                                corresponding 3-month period in either 
                                of the 2 most recent preceding fiscal 
                                years.
                            ``(ii) As determined by the Secretary of 
                        Agriculture, the monthly average number of 
                        households (as of the last day of each month) 
                        that participated in the food stamp program in 
                        the State in the then most recently concluded 
                        3-month period for which data are available 
                        exceeds by at least 10 percent the monthly 
                        average number of households (as of the last 
                        day of each month) in the State that 
                        participated in the food stamp program in the 
                        corresponding 3-month period in either of the 2 
                        most recent preceding fiscal years, provided 
                        that the Secretary makes a determination that 
                        the State's increase in the number of such 
                        households was due, in large measure, to 
                        economic conditions rather than an expansion of 
                        program eligibility requirements.
                            ``(iii) As determined by the Secretary, the 
                        monthly average number of families that 
                        received assistance under the State program 
                        funded under this part or under a program 
                        funded with qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i)) in the most 
                        recently concluded 3-month period for which 
                        data are available from the State increased by 
                        at least 10 percent over the number of such 
                        families that received such benefits in the 
                        corresponding 3-month period in either of the 2 
                        most recent preceding fiscal years, provided 
                        that the Secretary makes a determination that 
                        the State's increased caseload was due, in 
                        large measure, to economic conditions rather 
                        than an expansion of program eligibility 
                        requirements.
                    ``(B) Duration.--
                            ``(i) In general.--A State that qualifies 
                        as a needy State--
                                    ``(I) under subparagraph (A)(i), 
                                shall be considered a needy State until 
                                the factor which was used to meet the 
                                definition of needy State under that 
                                subparagraph for the most recently 
                                concluded 3-month period for which data 
                                are available, falls below the level 
                                attained for such factor in the 3-month 
                                period in which the State first 
                                qualified as a needy State under that 
                                subparagraph;
                                    ``(II) under subparagraph (A)(ii), 
                                shall be considered a needy State until 
                                the average monthly number of 
                                households participating in the food 
                                stamp program for the most recently 
                                concluded 3-month period for which data 
                                are available nationally falls below 
                                the food stamp base period level; and
                                    ``(III) under subparagraph 
                                (A)(iii), shall be considered a needy 
                                State until the number of families 
                                receiving assistance under the State 
                                program funded under this part or under 
                                a program funded with qualified State 
                                expenditures (as defined in section 
                                409(a)(7)(B)(i)) for the most recently 
                                concluded 3-month period for which data 
                                are available falls below the TANF base 
                                period level.
                            ``(ii) Seasonal variations.--
                        Notwithstanding subclauses (II) and (III) of 
                        clause (i), a State shall be considered a needy 
                        State--
                                    ``(I) under subparagraph (A)(ii), 
                                if with respect to the State, the 
                                monthly average number of households 
                                participating in the food stamp program 
                                for the most recent 3-month period for 
                                which data are available nationally 
                                falls below the food stamp base period 
                                level and the Secretary determines that 
                                this is due to expected seasonal 
                                variations in food stamp receipt in the 
                                State; and
                                    ``(II) under subparagraph (A)(iii), 
                                if, with respect to a State, the 
                                monthly average number of 
families receiving assistance under the State program funded under this 
part or under a program funded with qualified State expenditures (as 
defined in section 409(a)(7)(B)(i)) for the most recently concluded 3-
month period for which data are available nationally falls below the 
TANF base period level and the Secretary determines that this is due to 
expected seasonal variations in assistance receipt in the State.
                            ``(iii) Food stamp base period level.--In 
                        this subparagraph, the term `food stamp base 
                        period level' means the monthly average number 
                        of households participating in the food stamp 
                        program that corresponds to the most recent 3-
                        month period for which data are available at 
                        the time when the State first was determined to 
                        be a needy State under this paragraph.
                            ``(iv) TANF base period level.--In this 
                        subparagraph, the term `TANF base period level' 
                        means the monthly average number of families 
                        receiving assistance under the State program 
                        funded under this part or under a program 
                        funded with qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i)) that 
                        corresponds to the most recent 3 months for 
                        which data are available at the time when the 
                        State first was determined to be a needy State 
                        under this paragraph.
            ``(4) Exception.--
                    ``(A) In general.--Notwithstanding paragraph (3), a 
                State that has unobligated TANF reserves from prior 
                fiscal years that equal more than 25 percent of the 
                total amount of grants received by the State under 
                subsection (a) (other than welfare-to-work grants made 
                under paragraph (5) of that subsection prior to fiscal 
                year 1999) but not yet obligated as of the end of the 
                preceding fiscal year shall not be a needy State under 
                this subsection.
                    ``(B) Definition of unobligated tanf reserves.--In 
                subparagraph (A), the term `unobligated TANF reserves' 
                means the lessor of--
                            ``(i) the total amount of grants made to 
                        the State (regardless of the fiscal year in 
                        which such funds were awarded) under subsection 
                        (a) (other than welfare-to-work grants made 
                        under paragraph (5) of that subsection prior to 
                        fiscal year 1999) but not yet obligated as of 
                        the end of the preceding fiscal year; and
                            ``(ii) the total amount of grants made to 
                        the State under subsection (a) (other than 
                        welfare-to-work grants made under paragraph (5) 
                        of that subsection prior to fiscal year 1999) 
                        but not yet obligated as of the end of the 
                        preceding fiscal year, plus the difference 
                        between--
                                    ``(I) the pro rata share of the 
                                fiscal year grants to be made under 
                                subsection (a) to the State (other than 
                                such welfare-to-work grants); and
                                    ``(II) current year obligations of 
                                the total amount of grants made to all 
                                States under subsection (a) (regardless 
                                of the fiscal year in which such funds 
                                were awarded) (other than such welfare-
                                to-work grants) through the end of the 
                                most recent calendar quarter.''.
    (c) Clarification of Reporting Requirements.--Paragraph (5) of 
section 403(b) (42 U.S.C. 603(b)), as redesignated by subsection 
(b)(2), is amended by striking ``on the status of the Fund'' and 
inserting ``on the States that qualified for contingency funds and the 
amount of funding awarded under this subsection''.

SEC. 404. CHILD CARE.

    Section 418(a) (42 U.S.C. 618(a)), as amended by section 4 of the 
Welfare Reform Extension Act of 2003, is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting ``and remaining after the reservation 
        described in paragraph (4),'' after ``paragraph (3)'';
            (2) in paragraph (3)--
                    (A) by striking ``and'' at the end of subparagraph 
                (E);
                    (B) in subparagraph (F), by striking ``2002 and 
                2003'' and inserting ``2002 through 2006;''; and
                    (C) by adding at the end the following:
                    ``(G) $3,217,000,000 for fiscal year 2007;
                    ``(H) $3,717,000,000 for fiscal year 2008.'';
            (3) by redesignating paragraph (5) as paragraph (7); and
            (4) by inserting after paragraph (4) the following:
            ``(5) Additional general entitlement grants.--
                    ``(A) Appropriation.--
                            ``(i) In general.--For additional grants 
                        under paragraph (1), there is appropriated--
                                    ``(I) $750,000,000 for each of 
                                fiscal years 2004 and 2005; and
                                    ``(II) $1,000,000,000 for each of 
                                fiscal years 2006 through 2008.
                            ``(ii) Amounts in addition to other amounts 
                        appropriated; availability.--Amounts 
                        appropriated under this subparagraph for a 
                        fiscal year shall be in addition to amounts 
                        appropriated under paragraph (3) for such 
                        fiscal year and shall remain available without 
                        fiscal year limitation.
                    ``(B) Additional grant.--In addition to the grant 
                paid to a State under paragraph (1) for each of fiscal 
                years 2004 through 2008, the Secretary, after reserving 
the amount described in paragraph (4) and subject to the requirement 
described in paragraph (6), shall pay each State an amount equal to the 
same proportion of such amount as the proportion of the State's grant 
under paragraph (1) to the total amount appropriated for State grants 
under paragraph (1) for such fiscal year.
            ``(6) Requirement for grant increase.--Notwithstanding 
        paragraphs (1), (2), or (5), the aggregate amount paid to a 
        State under this section for each of fiscal years 2004 through 
        2008 may not exceed the aggregate amount paid to the State 
        under this section for fiscal year 2003 unless the State 
        ensures that the level of State expenditures for child care for 
        such fiscal year is not less than the sum of the level of State 
        expenditures for child care that were matched under a grant 
        made to the State under paragraph (2) and that the State 
        expended to meet its maintenance of effort obligation under 
        paragraph (2) for fiscal year 2003.''.

SEC. 405. RESTORATION OF FUNDING FOR THE SOCIAL SERVICES BLOCK GRANT.

    (a) Restoration of Funds for the Social Services Block Grant.--
Section 2003(c) (42 U.S.C. 1379b(c)) is amended--
            (1) in paragraph (10), by striking ``and'';
            (2) in paragraph (11), by striking ``and each fiscal year 
        thereafter.'' and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(12) $1,750,000,000 for fiscal year 2004;
            ``(13) $1,800,000,000 for fiscal year 2005;
            ``(14) $1,900,000,000 for fiscal year 2006;
            ``(15) $2,100,000,000 for fiscal year 2007; and
            ``(16) $2,800,000,000 for fiscal year 2008 and each fiscal 
        year thereafter.''.
    (b) Restoration of Authority To Transfer up to 10 Percent of TANF 
Funds.--Section 404(d)(2) (42 U.S.C. 604(d)(2)) is amended to read as 
follows:
            ``(2) Limitation on amount transferable to title xx 
        programs.--A State may use not more than 10 percent of the 
        amount of any grant made to the State under section 403(a) for 
        a fiscal year to carry out State programs pursuant to title 
        XX.''.

SEC. 406. COMPETITIVE GRANTS FOR PUBLIC-PRIVATE PARTNERSHIPS FOR 
              EDUCATIONAL OPPORTUNITIES FOR CAREER ADVANCEMENT.

    (a) Authority To Award Grants.--
            (1) In general.--The Secretary of Health and Human Services 
        and the Secretary of Labor (in this section referred to as the 
        ``Secretaries'') jointly shall award grants in accordance with 
        the requirements of this section for each fiscal year for which 
        an amount is appropriated to carry out this section for 
        projects proposed by eligible applicants to encourage the 
        formation of public-private partnerships to provide educational 
        opportunities for individuals who receive assistance under the 
        temporary assistance to needy families program funded under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.) and for individuals who have ceased to receive assistance 
        under that program.
            (2) Criteria.--The Secretaries shall award grants under 
        this section based on the following:
                    (A) The potential effectiveness of the proposed 
                project in carrying out the activities described in 
                subsection (e).
                    (B) Evidence of the ability of the eligible 
                applicant to leverage private, State, and local 
                resources to carry out such activities.
                    (C) Evidence of the ability of the eligible 
                applicant to coordinate with other organizations at the 
                State and local level in carrying out such activities.
    (b) Definition of Eligible Applicant.--In this section, the term 
``eligible applicant'' means--
            (1) a public educational institution;
            (2) an employer; or
            (3) a local or regional consortium that includes employers 
        or employer associations, education and training providers, 
        local chambers of commerce, or providers of social services.
    (c) Application.--Each eligible applicant desiring a grant under 
this section shall submit an application to the Secretaries at such 
time, in such manner, and that includes--
            (1) evidence, including letters of support, demonstrating 
        that the applicant will work with the State in carrying out the 
        activities described in subsection (e); and
            (2) such other information as the Secretaries may 
        reasonably require.
    (d) Determination of Amount of Grants; Availability of Funds.--
            (1) In general.--In determining the appropriate amount of a 
        grant to be awarded under this section, the Secretaries shall 
        provide an eligible applicant with an approved application an 
        amount sufficient to ensure that the project has a reasonable 
        opportunity to be successful, taking into account--
                    (A) the number and characteristics of the 
                individuals to be served by the project;
                    (B) the job opportunities and job growth in the 
                area to be served by the project;
                    (C) the poverty rate for such area; and
                    (D) such other factors as the Secretaries deem 
                appropriate.
            (2) Maximum amount.--No eligible applicant shall receive a 
        grant of more than $5,000,000 per year.
            (3) Availability of funds.--Funds provided under a grant 
        awarded under this section for a fiscal year shall remain 
        available for use by the eligible applicant through the end of 
        the succeeding fiscal year.
    (e) Use of Funds.--An eligible applicant awarded a grant under this 
section shall enter into an agreement with the State or local agency 
responsible for administering the temporary assistance to needy 
families program in the area where the eligible applicant is located to 
provide individuals described in subsection (a) with--
            (1) educational credits or opportunities based upon the 
        length of the individual's employment;
            (2) educational credits or opportunities based upon the 
        individual's commitment to becoming employed; or
            (3) education and training opportunities for career 
        advancement.
    (f) Reports.--
            (1) Project reports.--Each eligible applicant awarded a 
        grant under this section shall submit to the Secretaries such 
        information and data regarding the recipients participating in 
        the project funded under such grant and outcomes for such 
        recipients as the Secretaries may require.
            (2) Report to congress.--The Secretaries shall submit 
        annual reports to Congress on the information and data 
        submitted under paragraph (1).
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $25,000,000 for each of fiscal 
years 2004 through 2008.

SEC. 407. GRANTS TO IMPROVE ACCESS TO TRANSPORTATION.

    (a) In General.--Section 403(a) (42 U.S.C. 603(a)), as amended by 
section 201, is amended by adding at the end the following:
            ``(7) Grant to improve access to transportation.--
                    ``(A) Purposes.--The purposes of this paragraph are 
                to--
                            ``(i) assist low-income families with 
                        children obtain dependable, affordable 
                        automobiles to improve their employment 
                        opportunities and access to training; and
                            ``(ii) provide incentives to States, Indian 
                        tribes, local governments, and nonprofit 
                        entities to develop and administer programs 
                        that provide assistance with automobile 
                        ownership for low-income families.
                    ``(B) Definitions.--In this paragraph:
                            ``(i) Locality.--The term `locality' means 
                        a municipality that does not administer a State 
                        program funded under this part.
                            ``(ii) Low-income family with children.--
                        The term `low-income family with children' 
                        means a household that is eligible for benefits 
                        or services funded under the State program 
                        funded under this part or under a program 
                        funded with qualified State expenditures (as 
                        defined in section 409(a)(7)(B)(i)).
                            ``(iii) Nonprofit entity.--The term 
                        `nonprofit entity' means a school, local 
                        agency, organization, or institution owned and 
                        operated by 1 or more nonprofit corporations or 
                        associations, no part of the net earnings of 
                        which inures, or may lawfully inure, to the 
                        benefit of any private shareholder or 
                        individual.
                    ``(C) Authority to award grants.--The Secretary may 
                award grants to States, Indian tribes, counties, 
                localities, and nonprofit entities to promote improving 
                access to dependable, affordable automobiles by low-
                income families with children.
                    ``(D) Grant approval criteria.--The Secretary shall 
                establish criteria for approval of an application for a 
                grant under this paragraph that include consideration 
                of--
                            ``(i) the extent to which the proposal, if 
                        funded, is likely to improve access to training 
                        and employment opportunities and child care 
                        services by low-income families with children 
                        by means of car ownership;
                            ``(ii) the level of innovation in the 
                        applicant's grant proposal; and
                            ``(iii) any partnerships between the public 
                        and private sector in the applicant's grant 
                        proposal.
                    ``(E) Use of funds.--
                            ``(i) In general.--A grant awarded under 
                        this paragraph shall be used to administer 
                        programs that assist low-income families with 
                        children with dependable automobile ownership, 
                        and maintenance of, or insurance for, the 
                        purchased automobile.
                            ``(ii) Supplement not supplant.--Funds 
                        provided to a State, Indian tribe, county, or 
                        locality under a grant awarded under this 
                        paragraph shall be used to supplement and not 
                        supplant other State, county, or local public 
                        funds expended for car ownership programs.
                            ``(iii) General rules governing use of 
                        funds.--The rules of section 404, other than 
                        subsection (b) of that section, shall not apply 
                        to a grant made under this paragraph.
                    ``(F) Application.--Each applicant desiring a grant 
                under this paragraph shall submit an application to the 
                Secretary at such time, in such manner, and accompanied 
                by such information as the Secretary may reasonably 
                require.
                    ``(G) Reversion of funds.--Any funds not expended 
                by a grantee within 3 years after the date the grant is 
                awarded under this paragraph shall be available for 
                redistribution among other grantees in such manner and 
                amount as the Secretary may determine, unless the 
                Secretary extends by regulation the time period to 
                expend such funds.
                    ``(H) Limitation on administrative costs of the 
                secretary.--Not more than an amount equal to 5 percent 
                of the funds appropriated to make grants under this 
                paragraph for a fiscal year shall be expended for 
                administrative costs of the Secretary in carrying out 
                this paragraph.
                    ``(I) Evaluation.--The Secretary shall, by grant, 
                contract, or interagency agreement, conduct an 
                evaluation of the programs administered with grants 
                awarded under this paragraph.
                    ``(J) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary to make 
                grants under this paragraph, $20,000,000 for each of 
                fiscal years 2004 through 2008.''.
    (b) Improving Use of TANF Funds for Car Ownership Matching Funds.--
Section 404(h)(2)(B) of the Social Security Act (42 U.S.C. 
608(h)(2)(B)) is amended by adding at the end the following:
                            ``(iv) Automobile purchase or 
                        maintenance.--At the option of the State, costs 
                        with respect to the purchase or maintenance of 
                        an automobile.''.

SEC. 408. PATHWAY TO SELF-SUFFICIENCY GRANTS TO IMPROVE COORDINATION OF 
              ASSISTANCE FOR LOW-INCOME FAMILIES.

    (a) Definitions.--In this section:
            (1) Eligible applicant.--The term ``eligible applicant'' 
        means a State or local government agency or a nonprofit entity.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) State.--The term ``State'' means each of the 50 States 
        of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, American Samoa, Guam, and the 
        United States Virgin Islands.
            (4) Support program for low-income families.--The term 
        ``support program for low-income families'' means a program 
        designed to provide low-income families and noncustodial 
        parents who need help with obtaining employment and fulfilling 
        child support obligations to children receiving assistance 
        under the temporary assistance to needy families program 
        established under part A of title IV of the Social Security Act 
        (42 U.S.C. 601 et seq.) with assistance or benefits to enable 
        the family or noncustodial parent to become self-sufficient and 
        includes--
                    (A) the temporary assistance to needy families 
                program established under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.);
                    (B) the food stamp program established under the 
                Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
                    (C) the medicaid program funded under title XIX of 
                the Social Security Act (42 U.S.C. 1396 et seq.);
                    (D) the State children's health insurance program 
                (SCHIP) funded under title XXI of the Social Security 
                Act (42 U.S.C. 1397aa et seq.);
                    (E) the child care program funded under the Child 
                Care Development Block Grant Act of 1990 (42 U.S.C. 
                9858 et seq.);
                    (F) the child support program funded under part D 
                of title IV of the Social Security Act (42 U.S.C. 651 
                et seq.);
                    (G) the earned income tax credit under section 32 
                of the Internal Revenue Code of 1986;
                    (H) the low-income home energy assistance program 
                (LIHEAP) established under the Low-Income Home Energy 
                Assistance Act of 1981 (42 U.S.C. 8621 et seq.);
                    (I) the special supplemental nutrition program for 
                women, infants, and children (WIC) established under 
section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786);
                    (J) programs under the Workforce Investment Act of 
                1998 (29 U.S.C. 2801 et seq.);
                    (K) programs supporting low-income housing 
                assistance programs; and
                    (L) any other Federal, State, or locally funded 
                program designed to provide family and work support to 
                low-income families.
    (b) Authority To Award Grants.--
            (1) In general.--The Secretary may award grants to eligible 
        applicants to--
                    (A) improve the coordination of support programs 
                for low-income families and noncustodial parents 
                described in subsection (a)(4); and
                    (B) conduct outreach to such families and 
                noncustodial parents to promote enrollment in such 
                programs.
            (2) Preference.--In awarding grants under this section, the 
        Secretary shall give preference to eligible applicants that 
        include in the application submitted under subsection (c) 
        documentation demonstrating that the eligible applicant will 
        collaborate with other Federal, State, or local agencies or 
        nonprofit entities in carrying out activities under the grant.
    (c) Application.--Each eligible applicant desiring a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may require.
    (d) Annual Reports.--
            (1) In general.--The Secretary shall submit an interim and 
        final report to Congress describing the uses of grant funds 
        awarded under this section.
            (2) Dates for submission.--With respect to the reports 
        required under paragraph (1), the Secretary shall submit--
                    (A) the interim report, not later than December 31, 
                2006; and
                    (B) the final report, not later than December 31, 
                2009.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for the period of 
fiscal years 2004 through 2008.
    (f) Annual Assessment of Regional Labor Markets To Target Higher 
Entry Level Wage Opportunities in Industries Experiencing Labor 
Shortages.--
            (1) In general.--An State to which a grant is made under 
        this section annually shall conduct an assessment of its 
        regional labor markets that includes the following:
                    (A) Labor market.--The assessment shall--
                            (i) identify industries or occupations that 
                        have or expect growth, the loss of skilled 
                        workers, or that have a demand for a subset of 
                        workers;
                            (ii) identify the entry-level education and 
                        skills requirements for the industries or 
                        occupations that have or anticipate a need for 
                        workers; and
                            (iii) analyze the entry-level wages and 
                        benefits in identified industries or 
                        occupations.
                    (B) Job seekers.--The assessment shall create a 
                profile of the characteristics of the unemployed and 
                underemployed residents of the State, including 
                educational attainment, barriers to employment, 
                geographic concentrations, and access to needed support 
                services.
                    (C) Education and training infrastructure.--The 
                assessment shall create a profile of the State's 
                available education, training, and support services to 
                prepare workers for the identified industries or 
                occupations.
                    (D) Aligning industries and job seeker needs.--The 
                assessment shall compare the characteristics of the 
                identified industries or occupations to the profiles 
                created under subparagraphs (B) and (C).
            (2) Provision of information to localities.--The State 
        shall share with local political subdivisions of the State--
                    (A) information regarding the existence of higher 
                entry-wage job opportunities in industries experiencing 
                labor shortages; and
                    (B) opportunities for collaboration with 
                institutions of higher education, community-based 
                organizations, and economic development and welfare 
                agencies.
            (3) Data.--A State may use data available as of the date 
        the State begins an assessment under paragraph (1) to conduct 
        such assessment if such data provides the information necessary 
        to conduct the assessment described in that paragraph.
            (4) Reports.--
                    (A) State reports.--Each State to which a grant is 
                made under this section annually shall submit a report 
                to the Secretary that contains the assessment required 
                under paragraph (1).
                    (B) Report to congress.--The Secretary annually 
                shall submit a report to Congress compiling the State 
                reports submitted under subparagraph (A).

SEC. 409. TRANSITIONAL JOBS PROGRAMS.

    Section 403(a) (42 U.S.C. 603(a)), as amended by section 407(a), is 
amended by adding at the end the following:
            ``(8) Transitional jobs grants.--
                    ``(A) Purpose.--The purpose of this paragraph is to 
                provide funding so that States and localities can 
                create and expand transitional jobs programs that--
                            ``(i) combine time-limited employment that 
                        is subsidized with public funds, with skill 
                        development and barrier removal activities, 
                        pursuant to an individualized plan;
                            ``(ii) provide job development and 
                        placement assistance to individual program 
                        participants to help them move from subsidized 
                        employment in transitional jobs into 
                        unsubsidized employment, as well as retention 
                        services after the transition to unsubsidized 
                        employment; and
                            ``(iii) serve recipients of assistance 
                        under the State program funded under this part 
                        and other low-income individuals who have been 
                        unable to secure employment through job search 
                        or other employment-related services because of 
                        limited skills, experience, or other barriers 
                        to employment.
                    ``(B) Limitations on use of funds.--
                            ``(i) Allowable activities.--An entity to 
                        which funds are provided under this paragraph 
                        shall use the funds to operate transitional 
                        jobs programs consistent with the following:
                                    ``(I) An entity which secures a 
                                grant to operate a transitional jobs 
                                program (in this subparagraph referred 
                                to as a `program operator'), under this 
                                paragraph shall place eligible 
                                individuals in temporary, publicly 
                                subsidized jobs. Individuals placed in 
                                such jobs shall perform work directly 
                                for the program operator, or at other 
                                public and nonprofit organizations (in 
                                this subparagraph referred to as 
                                `worksite employers') within the 
                                community. Funds provided under this 
                                paragraph shall be used to subsidize 
                                100 percent of the wages paid to 
                                program participants as well as 
                                employer-paid payroll costs for such 
                                participants.
                                    ``(II) Transitional jobs programs 
                                shall provide paid employment for not 
                                less than 30, nor more than 40 hours 
                                per week, except that a parent with a 
                                child under the age of 6, a child who 
                                is disabled, or a child with other 
                                special needs, or an individual who for 
                                other reasons cannot successfully 
                                participate for 30 to 40 hours per 
                                week, may, at State discretion, be 
                                allowed to participate for more limited 
                                hours, but not less than 20 hours per 
                                week.
                                    ``(III) Program operators shall 
                                provide case management services and 
                                ensure that appropriate education, 
                                training, and other services are 
                                available to program participants 
                                consistent with an individual plan 
                                developed for each such participant.
                                    ``(IV) Program operators shall 
                                provide job placement assistance to 
                                help program participants obtain 
                                unsubsidized employment, and shall 
                                provide retention services for 12 
                                months after entry into unsubsidized 
                                employment.
                                    ``(V) In any work week in which a 
                                program participant is employed at 
                                least 30 hours, not less than 20 
                                percent, nor more than 50 percent of 
                                scheduled hours shall involve 
                                participation in education or training 
                                activities designed to improve the 
                                participant's employability and 
                                potential earnings, or other services 
                                designed to reduce or eliminate any 
                                barriers that may impede the 
                                participant's ability to secure 
                                unsubsidized employment.
                                    ``(VI) The maximum duration of any 
                                placement in a transitional jobs 
                                program shall not be less than 6 
                                months, nor more than 24 months. 
                                Nothing in this subclause shall be 
                                construed to bar a program participant 
                                from moving into unsubsidized 
                                employment at a point prior to the 
                                maximum duration of the program. States 
                                may approve programs of varying 
                                durations consistent with this 
                                subclause.
                                    ``(VII) Program participants shall 
                                be paid at the rate paid to 
                                unsubsidized employees of the worksite 
                                employer (or program operator where 
                                work is performed directly for the 
                                program operator) who perform 
                                comparable work at the worksite where 
                                the individual is placed. If no other 
                                employees perform the same or 
                                comparable work then wages shall be 
                                set, at a minimum, at 50 percent of the 
                                Lower Living Standard Income Level (in 
                                this subparagraph referred to as the 
`LLSIL'), as specified in section 101(24) of the Workforce Investment 
Act of 1998, for a family of 3 based on 35 hours per week.
                                    ``(VIII) Program participants shall 
                                receive supervision from the worksite 
                                employer or program operator consistent 
                                with the goal of addressing the limited 
                                work experience and skills of program 
                                participants.
                            ``(ii) Consultation.--An application 
                        submitted by an entity seeking to become a 
                        program operator shall include an assurance by 
                        the applicant that the transitional jobs 
                        program carried out by the applicant shall--
                                    ``(I) provide in the design, 
                                recruitment, and operation of the 
                                program for broad-based input from the 
                                community served and potential 
                                participants in the program and 
                                community-based agencies with a 
                                demonstrated record of experience in 
                                providing services, prospective 
                                worksite employers, local labor 
                                organizations representing employees of 
                                prospective worksite employers, if 
                                these entities exist in the area to be 
                                served by the program, and employers, 
                                and membership-based groups that 
                                represent low-income individuals; and
                                    ``(II) prior to the placement of 
                                program participants, consult with the 
                                appropriate local labor organization, 
                                if any, representing employees in the 
                                area who are engaged in the same or 
                                similar work as that proposed to be 
                                carried out by such program.
                            ``(iii) Eligibility for other work 
                        supports.--Program participants shall be 
                        eligible for subsidized child care, 
                        transportation assistance, and other needed 
                        support services on the same basis as other 
                        recipients of cash assistance under the State 
                        program funded under this part.
                            ``(iv) Wages not considered assistance.--
                        Wages paid to program participants shall not be 
                        considered to be assistance for purposes of 
                        section 408(a)(7).
                            ``(v) Private sector placements.--Not more 
                        than 50 percent of the total number of such 
                        participants in transitional jobs in a State at 
                        any time may be placed at worksite employers 
                        which are private, for-profit entities.
                    ``(C) General eligibility.--
                            ``(i) In general.--Not less than \2/3\ of 
                        the participants in a transitional jobs program 
                        funded under a grant made under this paragraph 
                        during a fiscal year shall be individuals who 
                        are, at the time they enter the program--
                                    ``(I) receiving assistance under 
                                the State program funded under this 
                                part;
                                    ``(II) not receiving assistance 
                                under the State program funded under 
                                this part, but who are unemployed, and 
                                who were recipients of such assistance 
                                within the immediately preceding 12-
                                month period;
                                    ``(III) custodial parents of a 
                                minor child who meet the financial 
                                eligibility criteria for assistance 
                                under the State program funded under 
                                this part; or
                                    ``(IV) noncustodial parents with 
                                income below 150 percent of the poverty 
                                line (as defined in section 673(2) of 
                                the Omnibus Budget Reconciliation Act 
                                of 1981, including any revision 
                                required by such section, applicable to 
                                a family of the size involved).
                            ``(ii) Limitation.--Not more than \1/3\ of 
                        all participants in a transitional jobs program 
                        funded under this paragraph during a fiscal 
                        year shall be individuals who have attained at 
                        least age 18 with an income below 150 percent 
                        of the poverty line (as defined in section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981, including any revision required by 
                        such section, applicable to a family of the 
                        size involved) who are not eligible under 
                        clause (i). An individual who is an ex-offender 
                        shall be eligible to participate in a 
                        transitional jobs program funded under this 
                        paragraph.
                            ``(iii) Methodology.--The Secretary may use 
                        any reasonable methodology in calculating 
                        whether program participants satisfying the 
                        requirements of clause (i), constitute \2/3\ or 
                        more of all participants, and whether program 
                        participants satisfying the requirements of 
                        clause (ii) constitute not more than \1/3\ of 
                        all such participants in a fiscal year.
                            ``(iv) Authority to provide work-related 
                        services to individuals who have reached the 5-
                        year limit.--A program operator under this 
                        paragraph may use the funds to provide 
                        transitional job program participation to 
                        individuals who, but for section 408(a)(7), 
                        would be eligible for assistance under the 
                        program funded under this part of the State in 
                        which the program operator is located.
                    ``(D) Relationship to other provisions of this 
                part.--
                            ``(i) Rules governing use of funds.--The 
                        provisions of section 404 (other than 
                        subsection (f) thereof) shall not apply to a 
grant made under this paragraph.
                            ``(ii) Administration.--Section 416 shall 
                        not apply to the programs under this paragraph.
                            ``(iii) Prohibition against use of grant 
                        funds for any other fund matching 
                        requirement.--An entity to which funds are 
                        provided under this paragraph shall not use any 
                        part of the funds to fulfill any obligation of 
                        any State or political subdivision under 
                        subsection (b) or section 418 or any other 
                        provision of this Act or other Federal law.
                            ``(iv) Deadline for expenditure.--An entity 
                        to which funds are provided under this 
                        paragraph shall remit to the Secretary of Labor 
                        any part of the funds that are not expended 
                        within 3 years after the date on which the 
                        funds are so provided.
                            ``(v) Regulations.--Within 90 days after 
                        the date of enactment of this paragraph, the 
                        Secretary of Labor, after consultation with the 
                        Secretary of Health and Human Services, shall 
                        prescribe such regulations as may be necessary 
                        to implement this paragraph.
                            ``(vi) Reporting requirements.--The 
                        Secretary of Labor, in consultation with the 
                        Secretary of Health and Human Services, shall 
                        establish requirements for the collection and 
                        maintenance of financial and program 
                        participant information and the reporting of 
                        such information by entities carrying out 
                        activities under this paragraph. Such reporting 
                        requirements shall include, at a minimum, that 
                        States report disaggregated data on individual 
                        program participants that include the 
                        following:
                                    ``(I) Demographic information about 
                                the program participant including 
                                education level, literacy level, and 
                                prior work experience.
                                    ``(II) Identity of the program 
                                operator that provides or provided 
                                services to the program participant, 
                                and the duration of participation.
                                    ``(III) The nature of education, 
                                training or other services received by 
                                the program participant.
                                    ``(IV) Reasons for the program 
                                participant's leaving the program.
                                    ``(V) Whether the program 
                                participant secured unsubsidized 
                                employment during or within 60 days 
                                after the employment of the participant 
                                in a transitional job, and if so, 
                                details about the participant's 
                                unsubsidized employment including 
                                industry, occupation, starting wages 
                                and hours, and availability of employer 
                                sponsored health insurance and sick and 
                                vacation leave.
                            ``(vii) Additional reporting 
                        requirements.--States shall collect and report 
                        followup data for a sampling of program 
                        participants reflecting their employment and 
                        earning status 12 months after entering 
                        unsubsidized employment.
                    ``(E) National competitive grants.--
                            ``(i) In general.--The Secretary of Labor 
                        shall award grants in accordance with this 
                        paragraph, in fiscal years 2003 through 2007, 
                        for transitional jobs programs proposed by 
                        eligible applicants, based on the following:
                                    ``(I) The extent to which the 
                                proposal seeks to provide services in 
                                multiple sites that include sites in 
                                more than 1 State.
                                    ``(II) The extent to which the 
                                proposal seeks to provide services in a 
                                labor market area or region that 
                                includes portions of more than 1 State.
                                    ``(III) The extent to which the 
                                proposal seeks to provide transitional 
                                jobs in a State.
                                    ``(IV) The extent to which the 
                                applicant proposes to provide 
                                transitional jobs in either rural areas 
                                or areas where there are a high 
                                concentration of residents with income 
                                that is less than the poverty line.
                                    ``(V) The effectiveness of the 
                                proposal in helping individuals who are 
                                least job ready move into unsubsidized 
                                jobs that provide pathways to stable 
                                employment and livable wages.
                            ``(ii) Eligible applicants.--In this 
                        paragraph, the term `eligible applicant' 
                        means--
                                    ``(I) a Workforce Investment Board 
                                for a local workforce area in a State;
                                    ``(II) a political subdivision of a 
                                State;
                                    ``(III) a State;
                                    ``(IV) an Indian tribe; or
                                    ``(V) a private entity.
                            ``(iii) Funding.--Subject to subparagraphs 
                        (F) and (G), of the amount appropriated in 
                        subparagraph (H) for a fiscal year, $25,000,000 
                        of such amount shall be used to make grants 
                        under this paragraph for that fiscal year.
                    ``(F) Funding for indian tribes.--1.5 percent of 
                the amount appropriated in subparagraph (H) for each 
                fiscal year shall be reserved for grants to Indian 
                tribes.
                    ``(G) Funding for evaluations of transitional jobs 
                programs.--1.5 percent of the amount appropriated in 
subparagraph (H) for each fiscal year shall be reserved for use by the 
Secretary to carry out subparagraph (I).
                    ``(H) Appropriations.--
                            ``(i) In general.--Out of any money in the 
                        Treasury of the United States not otherwise 
                        appropriated, there are appropriated for grants 
                        under this paragraph, $25,000,000 for each of 
                        fiscal years 2004 through 2008.
                            ``(ii) Availability.--The amounts made 
                        available pursuant to clause (i) shall remain 
                        available for such period as is necessary to 
                        make the grants provided for in this paragraph.
                    ``(I) Evaluation of transitional jobs programs.--
                The Secretary, in consultation with the Secretary of 
                Labor--
                            ``(i) shall develop a plan to evaluate the 
                        extent to which transitional jobs programs 
                        funded under this paragraph have been effective 
                        in promoting sustained, unsubsidized employment 
                        for each group of eligible participants;
                            ``(ii) may evaluate the use of such grants 
                        by such grantees/ as the Secretary deems 
                        appropriate, in accordance with an agreement 
                        entered into with the grantees after good-faith 
                        negotiations; and
                            ``(iii) should include the following 
                        outcome measures in the plan developed under 
                        clause (i):
                                    ``(I) Placements in unsubsidized 
                                employment.
                                    ``(II) Placements in unsubsidized 
                                employment that last for at least 12 
                                months, and the extent to which 
                                individuals are employed continuously 
                                for at least 12 months.
                                    ``(III) Earnings of individuals who 
                                obtain employment at the time of 
                                placement.
                                    ``(IV) Earnings of individuals 1 
                                year after placement.
                                    ``(V) The occupations and 
                                industries in which wage growth and 
                                retention performance is greatest.
                                    ``(VI) Average expenditures per 
                                participant.''.

SEC. 410. GAO STUDY ON IMPACT OF BAN ON SSI BENEFITS FOR LEGAL 
              IMMIGRANTS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study to determine the impact of the prohibition under 
section 402 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1612) with respect to the 
eligibility of qualified aliens (as defined in section 431 of such Act 
(8 U.S.C. 1641)) for benefits under the supplemental security income 
program under title XVI of the Social Security Act (42 U.S.C. 1381 et 
seq.), including supplementary payments pursuant to an agreement for 
Federal administration under section 1616(a) of such Act (42 U.S.C. 
1382e) and payments pursuant to an agreement entered into under section 
212(b) of Public Law 93-66.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall submit a report to Congress on 
the study conducted under subsection (a) that includes such 
recommendations for legislative action as the Comptroller General 
determines appropriate.

SEC. 411. ENSURING TANF FUNDS ARE NOT USED TO DISPLACE PUBLIC 
              EMPLOYEES; APPLICATION OF WORKPLACE LAWS TO WELFARE 
              RECIPIENTS.

    (a) Welfare-to-Work Worker Protections.--
            (1) In general.--Section 403(a)(5)(I) (42 U.S.C. 
        603(a)(5)(I)) is amended--
                    (A) by striking clauses (i) and (iv);
                    (B) by redesignating clauses (v) and (vi) as 
                clauses (iv) and (v), respectively; and
                    (C) by inserting before clause (ii), the following:
                            ``(i) Nondisplacement.--
                                    ``(I) In general.--An adult in a 
                                family receiving assistance under a 
                                State program funded under this part, 
                                in order to engage in a work activity, 
                                shall not displace any employee or 
                                position (including partial 
                                displacement, such as a reduction in 
                                the hours of nonovertime work, wages, 
                                or employment benefits) or fill any 
                                unfilled vacancy.
                                    ``(II) Prohibitions.--A work 
                                activity engaged in under a program 
                                operated with funds provided under this 
                                paragraph shall not impair any existing 
                                contract for services, be inconsistent 
                                with any existing law, regulation, or 
                                collective bargaining agreement, or 
                                infringe upon the recall rights or 
                                promotional opportunities of any 
                                worker.
                                    ``(III) No supplanting of other 
                                hires.--A work activity engaged in 
                                under a program operated with funds 
                                provided under this paragraph shall be 
                                in addition to any activity that 
                                otherwise would be available and shall 
                                not supplant the hiring of an employed 
                                worker not funded under such program.
                                    ``(IV) Enforcing antidisplacement 
                                protections.--
                                            ``(aa) In general.--The 
                                        State shall establish and 
                                        maintain an impartial grievance 
                                        procedure to resolve any 
                                        complaints alleging violations 
                                        of the requirements of 
                                        subclause (I), (II), or (III) 
                                        within 60 days of receipt of 
                                        the complaint and, if a 
                                        decision is adverse to the 
                                        party who filed such grievance 
                                        or no decision has been 
                                        reached, provide for 
the completion of an arbitration procedure within 75 days of receipt of 
the complaint or the adverse decision or conclusion of the 60-day 
period, whichever is earlier.
                                            ``(bb) Appeals.--Appeals 
                                        may be made to the Secretary 
                                        who shall make a decision 
                                        within 75 days.
                                            ``(cc) Remedies.--Remedies 
                                        for a violation of the 
                                        requirements of subclause (I), 
                                        (II), or (III) shall include 
                                        termination or suspension of 
                                        payments, prohibition of the 
                                        placement of the participant, 
                                        reinstatement of an employee, 
                                        and other relief to make an 
                                        aggrieved employee whole.
                                            ``(dd) Limitation on 
                                        placement.--If a grievance is 
                                        filed regarding a proposed 
                                        placement of a participant, 
                                        such placement shall not be 
                                        made unless such placement is 
                                        consistent with the resolution 
                                        of the grievance pursuant to 
                                        this subclause.''.
            (2) State plan requirement.--Section 402(a)(1)(A) (42 
        U.S.C. 602(a)(1)(A)) is amended by adding at the end the 
        following:
                            ``(vii) In the case of a State that 
                        receives a welfare-to-work grant under section 
                        403(a)(5), ensure compliance with the 
                        nondisplacement requirements of subparagraph 
                        (I)(i) of that section.''.
    (b) Application of Workplace Laws to Welfare Recipients.--
Notwithstanding any other provision of law, workplace laws, including 
the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), the 
Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.), 
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), 
and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
seq.), shall apply to an individual who is a recipient of assistance 
under the temporary assistance to needy families program funded under 
part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) 
in the same manner as such laws apply to other workers. The fact that 
an individual who is a recipient of assistance under the temporary 
assistance to needy families program is participating in, or seeking to 
participate in work activities under that program in satisfaction of 
the work activity requirements of the program, shall not deprive the 
individual of the protection of any Federal, State, or local workplace 
law.

SEC. 412. DATA COLLECTION AND REPORTING.

    Section 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amended in the 
matter preceding clause (i), by striking ``(except for information 
relating to activities carried out under section 403(a)(5))'' and 
inserting `` (and in complying with this requirement, the Secretary 
shall require not more than 10 States to ensure that the following case 
record information is reported in a manner that permits analysis of 
such information by race, ethnicity or national origin, primary 
language, gender, and educational level, including analysis using a 
combination of these factors, and shall submit an annual report to 
Congress containing such data)''.

                         TITLE V--MISCELLANEOUS

SEC. 501. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided, the amendments made 
by this Act shall take effect on the date of enactment of this Act, and 
shall apply to payments under parts A and D of title IV of the Social 
Security Act for calendar quarters beginning on or after such date, 
without regard to whether regulations to implement the amendments are 
promulgated by such date.
    (b) Delay Permitted if State Legislation Required.--In the case of 
a State plan under section 402(a) or 454 of the Social Security Act (42 
U.S.C. 602(a), 654) which 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 made by this Act, the State plan 
shall not be regarded as failing to comply with the requirements of 
such section 402(a) or 454 solely on the basis of the failure of the 
plan to meet such additional requirements before the 1st day of the 1st 
calendar quarter beginning after the close of the 1st regular session 
of the State legislature that begins after the date of enactment of 
this Act. For purposes of the previous sentence, in the case of a State 
that has a 2-year legislative session, each year of such session shall 
be deemed to be a separate regular session of the State legislature.
                                 <all>