Grants for low-income car ownership programs

(a)

In general

Section 403(a) of the Social Security Act (42 U.S.C. 603(a)) is amended by adding at the end the following:

(6)

Grants for low-income car ownership programs

(A)

Purposes

The purposes of this paragraph are to— (i)assist low-income families obtain dependable, affordable automobiles to improve their employment opportunities and access to training; and (ii)provide incentives to States, Indian tribes or tribal organizations, localities, 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 families

The term low-income families means families with total income of not more than 200 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). (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, counties, localities, Indian tribes or tribal organizations, and nonprofit entities to promote improving access to dependable, affordable automobiles by low-income families. (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 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 dependable automobile ownership, and maintenance of, or insurance for, the purchased automobile. (ii)

Supplement not supplant

Funds provided to a State, Indian tribe or tribal organization, 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. (iv)

Rule of interpretation

For purposes of any requirement, limitation, or prohibition imposed on an individual or family by or pursuant to this part, assistance provided to a low-income family pursuant to a program referred to in clause (i) shall not be considered assistance under a State program funded under this part. (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 paid from to a grant made under this paragraph that are not expended within 3 years after the date the grant is awarded 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 the 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)

Limitations on authorization of appropriations

There are authorized to be appropriated to the Secretary for grants under this paragraph $50,000,000 for each of fiscal years 2006 through 2010.

(b)

Authority to use funds in individual development accounts for car ownership, maintenance, and insurance

(1)

Accounts established under the TANF program

(A)

Additional qualified purpose for use of funds

Section 404(h)(2)(B) of the Social Security Act (42 U.S.C. 604(h)(2)(B)) is amended by adding at the end the following:

(iv)

Qualified automotive expenditures

Qualified automotive expenditures paid from an individual development account directly to the persons to whom the amounts are due.

(B)

Definition

Section 404(h)(5) of the Social Security Act (42 U.S.C. 604(h)(5)) is amended by adding at the end the following:

(J)

Qualified automotive expenditures

The term qualified automotive expenditures means expenditures for the purchase or maintenance of an automobile, or for insurance for an automobile.

(2)

Accounts established under the Assets for Independence program

Section 404(8) of the Assets for Independence Act (42 U.S.C. 604 note) is amended by adding at the end the following:

(E)

Qualified automotive expenditures

(i)

In general

Qualified automotive expenditures paid from an individual development account directly to the persons to whom the amounts are due. (ii)

Definition

In clause (i), the term qualified automotive expenditures means expenditures for the purchase or maintenance of an automobile, or for insurance for an automobile.