[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 751 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 751

To reauthorize and improve the Temporary Assistance for Needy Families 
  (TANF) Program by promoting work, family, and opportunity, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 2005

Mr. McDermott (for himself, Mr. Cardin, Mr. Stark, Mr. Becerra, and Mr. 
   Emanuel) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Energy 
    and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To reauthorize and improve the Temporary Assistance for Needy Families 
  (TANF) Program by promoting work, family, and opportunity, 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 ``Work, Family, and Opportunity 
Promotion Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
                    TITLE I--REAL WORK REQUIREMENTS

Sec. 101. Universal engagement.
Sec. 102. Elimination of caseload reduction rate.
Sec. 103. State option to select job entry rate requirement in lieu of 
                            work participation rate requirement.
Sec. 104. Work rates.
Sec. 105. Employment credit.
Sec. 106. Effect of wage subsidies on 5-year limit.
Sec. 107. Workplace laws.
Sec. 108. Nondisplacement.
                  TITLE II--RESOURCES TO SUPPORT WORK

Sec. 201. Funding for child care.
Sec. 202. Family assistance grants.
Sec. 203 Social services block grant.
Sec. 204. 5-Year extension and simplification of the transitional 
                            medical assistance program (TMA).
Sec. 205. Extension of supplemental grants.
Sec. 206. Additional grants for States with low Federal funding per 
                            poor child.
Sec. 207. Bonus to reward high performance States.
Sec. 208. Contingency fund.
Sec. 209. Eligibility of Puerto Rico, the United States Virgin Islands, 
                            and Guam for the supplemental grant for 
                            population increases, the contingency fund, 
                            and mandatory child care funding.
 TITLE III--ACCESS TO EDUCATION, TRAINING, AND REHABILITATIVE SERVICES

Sec. 301. Education and training.
Sec. 302. Rehabilitative services.
                       TITLE IV--REDUCING POVERTY

Sec. 401. Poverty reduction.
Sec. 402. Employment enhancement.
         TITLE V--SUPPORTING FAMILIES AND RESPONSIBLE PARENTING

Sec. 501. Family formation fund.
Sec. 502. Two-parent eligibility.
Sec. 503. Child support.
                TITLE VI--FAIRNESS FOR LEGAL IMMIGRANTS

Sec. 601. Treatment of aliens under the TANF program.
Sec. 602. Optional coverage of legal immigrants under the medicaid 
                            program and SCHIP.
Sec. 603. Eligibility of disabled children who are qualified aliens for 
                            SSI.
Sec. 604. SSI extension for humanitarian immigrants.
                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Clarification of authority of States to use TANF funds 
                            carried over from prior years to provide 
                            TANF benefits and services.
Sec. 702. Definition of assistance.
Sec. 703. Continuation of pre-welfare reform waivers.
Sec. 704. Maintenance of effort.
Sec. 705. Funding for tribal TANF programs.
Sec. 706. Funding for families assisted by a territory program.
Sec. 707. Repeal of Federal loan fund for State welfare programs.
Sec. 708. Ban on using Federal TANF funds to replace State and local 
                            spending that does not meet the definition 
                            of qualified State expenditures.
Sec. 709. Extension of funding of studies and demonstrations.
Sec. 710. Longitudinal studies of employment and earnings of TANF 
                            leavers.
Sec. 711. Study by the Census Bureau.
     TITLE VIII--EXTENSION OF TANF PROGRAM THROUGH FISCAL YEAR 2005

Sec. 801. Extension of TANF program and related authorities through 
                            fiscal year 2005.
                        TITLE IX--EFFECTIVE DATE

Sec. 901. 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.

                    TITLE I--REAL WORK REQUIREMENTS

SEC. 101. UNIVERSAL ENGAGEMENT.

    (a) Modification of Individual Responsibility Plans.--Section 
408(b) (42 U.S.C. 608(b)) is amended to read as follows:
    ``(b) Individual Responsibility Plans.--
            ``(1) Assessment.--The State agency responsible for 
        administering the State program funded under this part shall 
        make an initial screening and assessment of the following for 
        each family with an adult or minor child head of household 
        receiving assistance under the program:
                    ``(A) The education obtained, skills, prior work 
                experience, work readiness, and barriers to work of 
                each adult or minor child head of household recipient 
                of assistance in the family who has attained age 18 or 
                who has not completed high school or obtained a 
                certificate of high school equivalency, and is not 
                attending secondary school.
                    ``(B) The work support, work readiness, and family 
                support services for which the family is eligible.
                    ``(C) The well-being of the children in the family 
                and, where appropriate, activities or resources to 
                improve the well-being of the children.
            ``(2) Contents of plans.--
                    ``(A) In general.--On the basis of the screening 
                and assessment required under paragraph (1) for a 
                family with an adult or minor child head of household 
                recipient of the assistance, the State agency, in 
                consultation with the family, shall develop an 
                individual responsibility plan that--
                            ``(i) establishes for each such recipient a 
                        self-sufficiency plan that specifies activities 
                        described in the State plan submitted pursuant 
                        to section 402, including work activities 
                        specified in section 407(d), as appropriate, 
                        that are designed to assist the family in 
                        achieving the maximum degree of self-
                        sufficiency for the family, and that provides 
                        for the ongoing participation of the recipient 
                        in the activities;
                            ``(ii) sets forth the obligations of each 
                        such recipient which may include registering 
                        for work and commencing a search for employment 
                        for a specified number of hours each week;
                            ``(iii) requires, at a minimum, each such 
                        recipient to participate in activities in 
                        accordance with the individual responsibility 
                        plan;
                            ``(iv) sets forth the appropriate 
                        supportive services the State intends to 
                        provide for the family;
                            ``(v) establishes for the family a plan 
                        that addresses the issue of child well-being 
                        and, when appropriate, adolescent well-being, 
                        and that may include services such as domestic 
                        violence counseling, mental health referrals, 
                        and parenting courses; and
                            ``(vi) includes a section designed to 
                        assist the family by informing the family of 
                        the work support assistance for which the 
                        family may be eligible, including--
                                    ``(I) the food stamp program 
                                established under the Food Stamp Act of 
                                1977 (7 U.S.C. 2011 et seq.);
                                    ``(II) the medicaid program funded 
                                under title XIX;
                                    ``(III) the State children's health 
                                insurance program funded under title 
                                XXI;
                                    ``(IV) child care funded under the 
                                Child Care Development Block Grant Act 
                                of 1990 (42 U.S.C. 9858 et seq.);
                                    ``(V) the earned income tax credit 
                                under section 32 of the Internal 
                                Revenue Code of 1986;
                                    ``(VI) the low-income home energy 
                                assistance program established under 
                                the Low-Income Home Energy Assistance 
                                Act of 1981 (42 U.S.C. 8621 et seq.);
                                    ``(VII) the special supplemental 
                                nutrition program for women, infants, 
                                and children established under section 
                                17 of the Child Nutrition Act of 1966 
                                (42 U.S.C. 1786);
                                    ``(VIII) programs conducted under 
                                the Workforce Investment Act of 1998 
                                (29 U.S.C. 2801 et seq.); and
                                    ``(IX) low-income housing 
                                assistance programs.
            ``(3) Review.--
                    ``(A) Regular review.--The State agency shall--
                            ``(i) monitor the participation of each 
                        adult recipient of the assistance in the 
                        activities specified in the individual 
                        responsibility plan, and regularly review the 
                        progress of each such family toward self-
                        sufficiency; and
                            ``(ii) upon such a review, revise the plan 
                        and activities required under the plan as the 
                        State deems appropriate in consultation with 
                        the family.
                    ``(B) Before imposition of a sanction.--The State 
                agency shall--
                            ``(i) review the individual responsibility 
                        plan before imposing a sanction against such an 
                        adult recipient or such a family for failure to 
                        comply with a requirement of the plan or the 
                        State program funded under this part; and
                            ``(ii) make a good faith effort to consult 
                        with the family as part of such review.
            ``(4) Timing.--The State shall comply with this 
        subsection--
                    ``(A) in the case of a family that, as of October 
                1, 2005, is not receiving assistance from the State 
                program funded under this part, not later than 60 days 
                after the family first receives assistance on the basis 
                of the most recent application for the assistance; and
                    ``(B) in the case of a family that, as of such 
                date, is receiving the assistance, not later than 
                September 30, 2006.
            ``(5) Rule of interpretation.--Nothing in this subsection 
        shall preclude a State from requiring participation in work and 
        any other activities the State deems appropriate for helping 
        families achieve self-sufficiency and improving child well-
        being.''.
    (b) Implementation.--
            (1) Development of model screening and assessment tools.--
                    (A) In general.--The Secretary of Health and Human 
                Services shall develop or identify model screening and 
                assessment tools to assist States (at their option) in 
                identifying an individual's barriers to employment or 
                compliance with the State program funded under part A 
                of title IV of the Social Security Act.
                    (B) Consultation.--The Secretary of Health and 
                Human Services shall develop or identify the model 
                tools required under paragraph (1) in consultation with 
                individuals and groups with expertise in circumstances 
                such as physical or mental impairments (including 
                learning disabilities), substance abuse, limited 
                English proficiency, domestic violence, or the need to 
                care for a family member with a disability.
                    (C) Dissemination.--The Secretary of Health and 
                Human Services shall disseminate the tools developed or 
                identified under this paragraph to States (as defined 
                in section 1101(a)(1) of the Social Security Act (42 
                U.S.C. 1301(a)(1)) for purposes of part A of title IV 
                of such Act) and Indian tribes with programs funded 
                under such part .

SEC. 102. ELIMINATION OF CASELOAD REDUCTION RATE.

    (a) In General.--Section 407(b) (42 U.S.C. 607(b)), as amended by 
section 503(b) of this Act, is amended by striking paragraph (2) and 
redesignating paragraphs (3) and (4) as paragraphs (2) and (3), 
respectively.
    (b) State Option to Phase-in Replacement of Caseload Reduction 
Credit With Employment Credit and Delay Applicability of Other 
Provisions.--A State may elect to have the amendments made by 
subsection (a) of this section not apply to the State program funded 
under part A of title IV of the Social Security Act until October 1, 
2006, and if the State makes the election, then, in determining the 
participation rate of the State for purposes of sections 407 and 
409(a)(3) of the Social Security Act for fiscal year 2006, the State 
shall be credited with \1/2\ of the reduction in the rate that would 
otherwise result from applying section 407(b)(4) of the Social Security 
Act (as added by section 105(a)(1) of this Act) to the State for fiscal 
year 2006 and \1/2\ of the reduction in the rate that would otherwise 
result from applying section 407(b)(2) of such Act (as so redesignated 
by section 503(b)(2)(D) of this Act) to the State for fiscal year 2006.

SEC. 103. STATE OPTION TO SELECT JOB ENTRY RATE REQUIREMENT IN LIEU OF 
              WORK PARTICIPATION RATE REQUIREMENT.

    (a) In General.--Part A of title IV (42 U.S.C. 601-619) is amended 
by inserting after section 407 the following:

``SEC. 407A. JOB ENTRY RATE REQUIREMENT.

    ``(a) State Option.--This section shall apply, in lieu of sections 
402(a)(1)(A)(iii) and 407(a), to a State program funded under this part 
if the Governor of the State so notifies the Secretary in writing, or 
State law so provides, by such deadline as the Secretary shall 
prescribe in regulations.
    ``(b) Requirement.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, a State to which this section applies for a fiscal 
        year shall achieve a job entry rate for the fiscal year that is 
        at least 2 percentage points greater than--
                    ``(A) in the case of fiscal year 2006, the job 
                entry rate of the State for fiscal year 2003; or
                    ``(B) in the case of any other fiscal year, the job 
                entry rate of the State for the preceding fiscal year.
            ``(2) Exception for high performance.--If the job entry 
        rate of the State for a fiscal year is at least 50 percent, 
        then the State shall achieve a job entry rate for the next 
        fiscal year that is not less than 1 percentage point greater 
        than the greater of--
                    ``(A) in the case of fiscal year 2006, the job 
                entry rate of the State for fiscal year 2003; or
                    ``(B) in the case of any other fiscal year, the job 
                entry rate of the State for the preceding fiscal year.
            ``(3) Exception for high unemployment.--If the average rate 
        of total unemployment in a State for the most recent 3-month 
        period for which such information is available has increased by 
        not less than the lesser of 50 percent or 1.5 percentage points 
        as compared to such rate for the corresponding 3-month period 
        in either of the 2 most recent preceding fiscal years, then the 
        State shall achieve a job entry rate that is not less than the 
        the job entry rate of the State for fiscal year 2003.
    ``(c) Job Entry Rate.--
            ``(1) In general.--The term `job entry rate', with respect 
        to a State, has the meaning given the term for purposes of the 
        regulations prescribed to implement section 403(a)(4) and in 
        effect on January 1, 2005, subject to paragraph (2) of this 
        subsection. The Secretary shall devise a method for 
        calculating, and shall determine, the job entry rate for fiscal 
        year 2003 for each State for which the calculation has not been 
        made, based on the criteria used in determining the job entry 
        rate for fiscal year 2003 for the States for which the 
        calculation has been made.
            ``(2) Good jobs bonus.--In determining the job entry rate 
        of a State for fiscal year 2006 or thereafter, the Secretary 
        shall count an individual who enters employment at a wage that 
        is not less than 33 percent of the average wage in the State 
        for the fiscal year as 1.5 individuals.''.
    (b) Penalty for Noncompliance.--Section 409(a)(3) (42 U.S.C. 
609(a)(3)) is amended--
            (1) in the paragraph heading, by inserting ``or achieve 
        minimum job entry rate'' after ``rates'';
            (2) in subparagraph (A), by inserting ``or 407A(b)'' after 
        ``407(a)''.

SEC. 104. WORK RATES.

    Section 407(a)(1) (42 U.S.C. 607(a)), as amended by section 
503(b)(1) of this Act, is amended to read as follows:
            ``(1) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve a minimum 
        participation rate equal to not less than--
                    ``(A) 50 percent for fiscal year 2006;
                    ``(B) 55 percent for fiscal year 2007;
                    ``(C) 60 percent for fiscal year 2008;
                    ``(D) 65 percent for fiscal year 2009; and
                    ``(E) 70 percent for fiscal year 2010 and each 
                succeeding fiscal year.''.

SEC. 105. EMPLOYMENT CREDIT.

    (a) In General.--
            (1) Employment credit to reward states in which families 
        leave welfare for work; additional credit for families with 
        higher earnings.--Section 407(b) (42 U.S.C. 607(b)), as amended 
        by sections 503(b) and 102(a) of this Act, is amended by adding 
        at the end the following:
            ``(4) 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 99 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 33 
                        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 the 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)(4).''.
    (b) States to Receive Partial Credit Toward Work Participation Rate 
for Recipients Engaged in Part-Time Work.--Section 407(c)(1)(A) (42 
U.S.C. 607(c)(1)(A)) 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 30 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.''.

SEC. 106. EFFECT OF WAGE SUBSIDIES ON 5-YEAR LIMIT.

    Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by adding at the 
end the following:
                    ``(H) Limitation on meaning of `assistance' for 
                families with income from employment.--For purposes of 
                this paragraph, at the option of the State, a benefit 
                or service provided to a family during a month under 
                the State program funded under this part shall not be 
                considered assistance under the program if--
                            ``(i) during the month, the family includes 
                        an adult or a minor child head of household who 
                        has received at least such amount of income 
                        from employment as the State may establish; and
                            ``(ii) the average weekly earned income of 
                        the family for the month is at least $100.''.

SEC. 107. WORKPLACE LAWS.

    Section 408 (42 U.S.C. 608) is amended by adding at the end the 
following:
    ``(h) Workplace Laws.--An individual engaged in an activity funded 
in whole or in part by the TANF program shall not be subjected to 
discrimination based on race, color, religion, sex, national origin, 
age, or disability, and shall not be denied the benefits or protections 
of any Federal, State or local employment, civil rights, or health and 
safety law because of the status of the individual as a participant in 
the TANF program.''.

SEC. 108. NONDISPLACEMENT.

    (a) In General.--Section 408 (42 U.S.C. 608), as amended by section 
107 of this Act, is amended by adding at the end the following:
    ``(i) Nondisplacement.--With respect to activities funded in whole 
or in part under this part, a State shall establish and maintain such 
procedures as are necessary to prohibit the placement of an individual 
in a work activity specified in section 407(d) from resulting in the 
displacement of any employee or position (including partial 
displacement, such as a reduction in the hours of nonovertime work 
wages or in employment benefits, a filling of any unfilled vacancy, or 
the performance of work when any other individual is on layoff from the 
same or any substantially equivalent job).''.
    (b) State Plan Requirement.--Section 402(a) (42 U.S.C. 602(a)) is 
amended by adding at the end the following:
            ``(8) A plan that outlines the resources and procedures 
        that will be used to ensure that the State will establish and 
        maintain the procedures described in section 408(i).''.

                  TITLE II--RESOURCES TO SUPPORT WORK

SEC. 201. FUNDING FOR CHILD CARE.

    (a) Increase in Mandatory Funding.--Section 418(a)(3) (42 U.S.C. 
618(a)(3)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(G) $2,917,000,000 for each of fiscal years 2006 
                through 2010.''.
    (b) Reservation of Child Care Funds.--
            (1) In general.--Section 418(a)(4) (42 U.S.C. 618(a)(4)) is 
        amended to read as follows:
            ``(4) Amounts reserved.--
                    ``(A) Indian tribes.--
                            ``(i) In general.--The Secretary shall 
                        reserve 2 percent of the aggregate amount 
                        appropriated to carry out this section for a 
                        fiscal year for payments to Indian tribes and 
                        tribal organizations for such fiscal year for 
                        the purpose of providing child care assistance.
                            ``(ii) Application of ccdbg requirements.--
                        Payments made under this subparagraph shall be 
                        subject to the requirements that apply to 
                        payments made to Indian tribes and tribal 
                        organizations under the Child Care and 
                        Development Block Grant Act of 1990.
                    ``(B) Territories.--
                            ``(i) Puerto rico.--The Secretary shall 
                        reserve 1.5 percent of the amount appropriated 
                        under paragraph (5)(A)(i) for a fiscal year for 
                        payments to the Commonwealth of Puerto Rico for 
                        such fiscal year for the purpose of providing 
                        child care assistance.
                            ``(ii) Other territories.--The Secretary 
                        shall reserve 0.5 percent of the amount 
                        appropriated under paragraph (5)(A)(i) for a 
                        fiscal year for payments to Guam, American 
                        Samoa, the Virgin Islands of the United States, 
                        and the Commonwealth of the Northern Mariana 
                        Islands in amounts which bear the same ratio to 
                        such amount as the amounts allotted to such 
                        territories under section 658O of the Child 
                        Care and Development Block Grant Act of 1990 
                        for the fiscal year bear to the total amount 
                        reserved under such section for that fiscal 
                        year.
                            ``(iii) Application of ccdbg 
                        requirements.--Payments made under this 
                        subparagraph shall be subject to the 
                        requirements that apply to payments made to 
                        territories under the Child Care and 
                        Development Block Grant Act of 1990.''.
            (2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C. 
        1308(a)(2)) is amended by striking ``or 413(f)'' and inserting 
        ``413(f), or 418(a)(4)(B)''.
    (c) Supplemental Grants.--Section 418(a) (42 U.S.C. 618(a)) is 
amended--
            (1) by redesignating paragraph (5) as paragraph (7); and
            (2) by inserting after paragraph (4) the following:
            ``(5) Supplemental grants.--
                    ``(A) Appropriation.--
                            ``(i) In general.--For supplemental grants 
                        under this section, there are appropriated--
                                    ``(I) $1,200,000,000 for fiscal 
                                year 2006;
                                    ``(II) $1,500,000,000 for fiscal 
                                year 2007;
                                    ``(III) $1,900,000,000 for fiscal 
                                year 2008;
                                    ``(IV) $2,400,000,000 for fiscal 
                                year 2009; and
                                    ``(V) $3,000,000,000 for fiscal 
                                year 2010.
                            ``(ii) Availability.--Amounts appropriated 
                        under clause (i) 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) Supplemental grant.--In addition to the 
                grants paid to a State under paragraphs (1) and (2) for 
                each of fiscal years 2006 through 2010, the Secretary, 
                after reserving the amounts described in subparagraphs 
                (A) and (B) of paragraph (4) for the fiscal year and 
                subject to paragraph (6), shall pay each State an 
                amount which bears the same ratio to the amount 
                specified in subparagraph (A)(i) of this paragraph for 
                the fiscal year (after the reservations), as the amount 
                allotted to the State under paragraph (2)(B) for fiscal 
                year 2003 bears to the amount allotted to all States 
                under paragraph (2)(B)for fiscal year 2003.
            ``(6) Requirements.--
                    ``(A) Maintenance of effort.--The Secretary may not 
                pay a supplemental grant to a State under paragraph (5) 
                for a fiscal year unless the State ensures that the 
                level of State expenditures for child care for the 
                fiscal year is not less than the total amount of State 
                expenditures that were taken into account in 
                determining the grant (if any) made to the State under 
                paragraph (2) for fiscal year 2003.
                    ``(B) Matching requirement for fiscal years 2009 
                and 2010.--With respect to the amount of the 
                supplemental grant made to a State under paragraph (5) 
                for each of fiscal years 2009 and 2010 that exceeds the 
                amount of the grant made to the State under paragraph 
                (5) for fiscal year 2008, paragraph (2)(C) shall apply 
                to the excess amount in the same manner as paragraph 
                (2)(C) applies to grants made under paragraph (2)(A) 
                for each of fiscal years 2009 and 2010, respectively.
                    ``(C) Redistribution.--In the case of a State that 
                fails to satisfy the requirement of subparagraph (A) of 
                this paragraph for a fiscal year, the supplemental 
                grant determined under paragraph (5) for the State for 
                that fiscal year shall be redistributed in accordance 
                with paragraph (2)(D).''.
    (d) Amendments to the Child Care and Development Block Grant Act of 
1990.--
            (1) Authorization of appropriations.--Section 658B of the 
        Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
        9858) is amended to read as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subchapter $2,350,000,000 for fiscal year 2006 and such sums as may be 
necessary for fiscal years 2007 through 2010.''.
            (2) Conforming amendment.--Section 658E(c)(3)(D) of the 
        Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
        9858c(c)(3)(D)) is amended by striking ``1997 through 2002'' 
        and inserting ``2006 through 2010''.

SEC. 202. FAMILY ASSISTANCE GRANTS.

    (a) In General.--Section 403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is 
amended by striking ``1996'' and all that follows through ``2003'' and 
inserting ``2005 through 2010''.
    (b) Inflation Increase.--
            (1) In general.--Section 403(a)(1) (42 U.S.C. 603(a)(1)) is 
        amended--
                    (A) by striking subparagaph (B) and inserting the 
                following:
                    ``(B) State family assistance grant.--The State 
                family assistance grant payable to a State for a fiscal 
                year specified in subparagraph (A) of this paragraph 
                shall be--
                            ``(i) the amount that bears the same ratio 
                        to the amount specified in subparagraph (C) of 
                        this paragraph as the amount required to be 
                        paid to the State under this paragraph for 
                        fiscal year 2002 (determined without regard to 
                        any reduction pursuant to section 409 or 
                        412(a)(1)) bears to the total amount required 
                        to be paid under this paragraph for fiscal year 
                        2002 (as so determined); multiplied by
                            ``(ii) 1.00, plus the inflation percentage 
                        (as defined in subparagraph (D) of this 
                        paragraph) in effect for the fiscal year so 
                        specified.''; and
                    (B) by adding at the end the following:
                    ``(D) Inflation percentage.--For purposes of 
                subparagraph (B) of this paragraph, the inflation 
                percentage applicable to a fiscal year is the 
                percentage (if any) by which--
                            ``(i) the average of the Consumer Price 
                        Index (as defined in section 1(f)(5) of the 
                        Internal Revenue Code of 1986) for the 12-month 
                        period ending on September 30 of the 
                        immediately preceding fiscal year; exceeds
                            ``(ii) the average of the Consumer Price 
                        Index (as so defined) for the 12-month period 
                        ending on September 30, 2007.''.
    (2) Effective Date.--The amendments made by paragraph (1) shall 
take effect on October 1, 2008.

SEC. 203 SOCIAL SERVICES BLOCK GRANT.

    (a) Restoration of Funds.--Section 2003(c)(11) (42 U.S.C. 
1397b(c)(11)) is amended by inserting ``, except that, for fiscal year 
2006, the amount shall be $1,975,000,000, and for fiscal year 2007, the 
amount shall be $2,800,000,000'' after ``thereafter''.
    (b) Restoration of Authority to Transfer Up to 10 Percent of TANF 
Funds to the Social Services Block Grant.--
            (1) In general.--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.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to amounts made available for fiscal year 2006 or 
        for any fiscal year thereafter.
    (c) Requirement to Submit Annual Report on State Activities.--
            (1) In general.--Section 2006(a) (42 U.S.C. 1397e(a)) is 
        amended by adding at the end the following: ``The Secretary 
        shall compile the reports submitted by the States pursuant to 
        this section and submit the compilation to the Congress on an 
        annual basis.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to information submitted by States under section 
        2006 of the Social Security Act (42 U.S.C. 1397e) with respect 
        to fiscal year 2006 and each fiscal year thereafter.

SEC. 204. 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), is 
        further redesignated as subsection (i) and is amended by 
        striking ``2003'' and inserting ``2010''.
            (2) Conforming amendment.--Section 1902(e)(1)(B) (42 U.S.C. 
        1396a(e)(1)(B)) is amended by striking ``2003'' and inserting 
        ``2010''.
    (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 adding at the end the following:
    ``(h) 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(h) (42 U.S.C. 1396r-6(h)), 
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 (h), as added by 
        subsection (d), the following:
    ``(i) 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 (i),'' 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, 2005, without regard 
        to whether or not final regulations to carry out such 
        amendments have been promulgated by such date.
            (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. 205. EXTENSION OF SUPPLEMENTAL GRANTS.

    Section 403(a)(3) (42 U.S.C. 603(a)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by striking the period at the end of clause 
                (ii) and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(iii) for each of fiscal years 2006 
                        through 2010, a grant in an amount equal to the 
                        amount required to be paid to the State under 
                        this paragraph in fiscal year 2001.'';
            (2) in subparagraph (E), by striking ``1998'' and all that 
        follows and inserting ``2006 through 2010 $1,597,250,000 for 
        grants under this paragraph.'';
            (3) by striking subparagraph (G); and
            (4) by striking subparagraph (H), as amended by section 
        801(b)(1) of this Act.

SEC. 206. ADDITIONAL GRANTS FOR STATES WITH LOW FEDERAL FUNDING PER 
              POOR CHILD.

    Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end 
the following:
    ``(6) Additional Grants for States With Low Federal Funding Per 
Poor Child.--
            ``(A) In general.--The Secretary shall make a grant 
        pursuant to this paragraph to a State--
                    ``(i) for fiscal year 2006, if the State is an 
                inadequately poverty-funded State for fiscal year 2005; 
                and
                    ``(ii) for any of fiscal years 2006 through 2010, 
                if the State is an inadequately poverty-funded State 
                for any prior fiscal year after fiscal year 2005.
            ``(B) Inadequately poverty-funded state.--For purposes of 
        this paragraph, a State is an inadequately poverty-funded State 
        for a particular fiscal year if--
                    ``(i) the total amount of the grants made to the 
                State under paragraph (1), paragraph (3), and this 
                paragraph for the particular fiscal year, divided by 
                the number of children in poverty in the State with 
                respect to the particular fiscal year is less than 75 
                percent of the total amount of grants made to all 
                eligible States under paragraph (1), paragraph (3), and 
                this paragraph for the particular fiscal year, divided 
                by the total number of children living in poverty in 
                all eligible States with respect to the particular 
                fiscal year; and
                    ``(ii) the total of the amounts paid to the State 
                under this subsection for all prior fiscal years that 
                have not been expended by the State by the end of the 
                preceding fiscal year is less than 50 percent of State 
                family assistance grant for the particular fiscal year.
            ``(C) Amount of grant.--The amount of the grant to be made 
        under this paragraph to a State for a particular fiscal year 
        shall be--
                    ``(i) if the particular fiscal year is fiscal year 
                2006, an amount equal to--
                            ``(I) the number of children in poverty in 
                        the State for the then preceding fiscal year, 
                        divided by the total number of children in 
                        poverty in all States that are inadequately 
                        poverty-funded States for the then preceding 
                        fiscal year; multiplied by
                            ``(II) the amount appropriated pursuant to 
                        subparagraph (G) for the particular fiscal 
                        year; or
                    ``(ii) if the particular fiscal year is any of 
                fiscal years 2007 through 2010, an amount equal to--
                            ``(I) the amount required to be paid to the 
                        State under this paragraph for the then 
                        preceding fiscal year; plus
                            ``(II) if the State is an inadequately 
                        poverty-funded State for the then preceding 
                        fiscal year--
                                    ``(aa) the number of children in 
                                poverty in the State for the then 
                                preceding fiscal year, divided by the 
                                total number of children in poverty in 
                                all States that are inadequately 
                                poverty-funded States for the then 
                                preceding fiscal year; multiplied by
                                    ``(bb) the amount appropriated 
                                pursuant to subparagraph (G) for the 
                                particular fiscal year.
            ``(D) Use of grant.--A State to which a grant is made under 
        this paragraph shall use the grant for any purpose for which a 
        grant made under this part may be used.
            ``(E) Definitions.--In this paragraph:
                    ``(i) Children in poverty.--The term `children in 
                poverty' means, with respect to a State and a fiscal 
                year, the number of children residing in the State who 
                had not attained 18 years of age and whose family 
                income was less than the poverty line then applicable 
                to the family, as of the end of the fiscal year.
                    ``(ii) Poverty line.--The term `poverty line' has 
                the meaning given the term in section 673(2) of the 
                Omnibus Budget Reconciliation Act of 1981, including 
                any revision required by such section.
            ``(F) Family income determinations.--For purposes of this 
        paragraph, family income includes cash income, except cash 
        benefits from means-tested public programs and child support 
        payments.
            ``(G) 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--
                            ``(I) $45,000,000 for fiscal year 2006;
                            ``(II) $90,000,000 for fiscal year 2007;
                            ``(III) $135,000,000 for fiscal year 2008;
                            ``(IV) $180,000,000 for fiscal year 2009; 
                        and
                            ``(V) $225,000,000 for fiscal year 2010.
                    ``(ii) Availability.--Amounts made available under 
                clause (i) shall remain available until expended.''.

SEC. 207. BONUS TO REWARD HIGH PERFORMANCE STATES.

    Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended--
            (1) in subparagraph (D), by striking ``$1,000,000,000'' and 
        inserting ``$1,800,000,000'';
            (2) in subparagraph (E), by striking ``and 2003'' and 
        inserting ``2005, 2006, 2007, 2008, 2009, and 2010''; and
            (3) in subparagraph (F), by striking ``$1,000,000,000'' and 
        inserting ``$800,000,000, and for fiscal years 2006 through 
        2010 $1,000,000,000,''.

SEC. 208. 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), and 
                out of funds appropriated under subparagraph (E), 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 applicable benefit level (as 
                        defined in subparagraph (D)(ii)); and
                            ``(ii) the adjusted increase in the number 
                        of families receiving assistance under the 
                        State program funded under this part and all 
                        programs funded with qualified State 
                        expenditures (as defined in subparagraph 
                        (D)(iii)).
                    ``(C) Limitation.--The total amount paid to a 
                single State under subparagraph (A) during a fiscal 
                year shall not exceed the amount equal to 10 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) 60 percent; and
                                    ``(II) the Federal medical 
                                assistance percentage for the State (as 
                                defined in section 1905(b)).
                            ``(ii) Applicable benefit level.--
                                    ``(I) In general.--Subject to 
                                subclause (II), the term `applicable 
                                benefit level' 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 and all programs funded with 
                                qualified State expenditures (as 
                                defined in section 409(a)(7)(B)(i)).
                            ``(iii) Adjusted increase in the number of 
                        families receiving assistance under the state 
                        program funded under this part and all programs 
                        funded with qualified state expenditures.--The 
                        term `adjusted increase in the number of 
                        families receiving assistance under the State 
                        program funded under this part and all programs 
                        funded with qualified State expenditures' means 
                        the increase in--
                                    ``(I) the unduplicated number of 
                                families receiving assistance under the 
                                State program funded under this part 
                                and all programs 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 product of--
                                            ``(aa) 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 
                                        initially qualifies as a needy 
                                        State; and
                                            ``(bb) 1.04.
                    ``(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there is appropriated for the period of 
                fiscal years 2006 through 2010, 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 period that begins with 
                any'' and inserting ``fiscal year quarter that includes 
                a''.
    (b) Modification of Definition of Needy State.--Section 403(b) (42 
U.S.C. 603(b)), as amended by subsection (a) of this section, is 
amended--
            (1) by striking paragraphs (5) and (6);
            (2) by redesignating paragraphs (7) and (8) as paragraphs 
        (5) and (6), respectively; and
            (3) by inserting after paragraph (2) (as so redesignated by 
        subsection (a)(2) of this section) the following:
            ``(3) Initial determination of whether a state qualifies as 
        a needy state.--
                    ``(A) In general.--For purposes of paragraph (1), a 
                State shall be initially determined to be a needy State 
                for a month if the State satisfies any 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, but only if 
                        the Secretary of Agriculture makes a 
                        determination that the State's increased 
                        caseload was due, in large measure, to economic 
                        conditions rather than changes in Federal or 
                        State policies related to the food stamp 
                        program.
                            ``(iii) As determined by the Secretary, the 
                        monthly average of the unduplicated number of 
                        families that received assistance under the 
                        State program funded under this part and all 
                        programs 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, but only if the Secretary makes a 
                        determination that the State's increased 
                        caseload was due, in large measure, to economic 
                        conditions rather than State policy changes.
                    ``(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 
                                either the State's (seasonally 
                                adjusted) total unemployment rate or 
                                (seasonally adjusted) insured 
                                unemployment rate, whichever rate was 
                                used to meet the definition as a needy 
                                State under that subparagraph for the 
                                most recently concluded 3-month period 
                                for which data are available, falls 
                                below the level attained in the 3-month 
                                period that was used to first determine 
                                that the State 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 unduplicated number of 
                                families receiving assistance under the 
                                State program funded under this part 
                                and all programs 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.--
                                    ``(I) In general.--Subject to 
                                subclause (II) of this clause, 
                                notwithstanding subclauses (II) and 
                                (III) of clause (i), a State shall be 
                                considered a needy State--
                                            ``(aa) under subparagraph 
                                        (A)(ii) of this paragraph, 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
                                            ``(bb) under subparagraph 
                                        (A)(iii) of this paragraph, if, 
                                        with respect to a State, the 
                                        monthly average of the number 
                                        of unduplicated families 
                                        receiving assistance under the 
                                        State program funded under this 
                                        part and all programs 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.
                                    ``(II) Limitations.--A State shall 
                                not be considered a needy State 
                                pursuant to--
                                            ``(aa) subclause (I)(aa) of 
                                        this clause, unless the 
                                        Secretary of Agriculture 
                                        determines that the number of 
                                        households receiving food 
                                        stamps remained at elevated 
                                        levels largely due to economic 
                                        factors; and
                                            ``(bb) subclause (I)(bb) of 
                                        this clause, unless the 
                                        Secretary determines that the 
                                        unduplicated number of families 
                                        receiving assistance under the 
                                        State program funded under this 
                                        part and all programs funded 
                                        with qualified State 
                                        expenditures (as defined in 
                                        section 409(a)(7)(B)(i)) 
                                        remained at elevated levels 
                                        largely due to economic 
                                        factors.
                            ``(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 of the unduplicated 
                        number of families receiving assistance under 
                        the State program funded under this part and 
                        all programs 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) Exceptions.--
                    ``(A) Unexpended balances.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (3) of this subsection, a State that 
                        has unexpended TANF balances in an amount that 
                        exceeds 30 percent of the total amount of 
                        grants received by the State under subsection 
                        (a) for the most recently completed fiscal year 
                        (other than welfare-to-work grants made under 
                        subsection (a)(5) before fiscal year 2000), 
                        shall not be a needy State under this 
                        subsection.
                            ``(ii) Definition of unexpended tanf 
                        balances.--In clause (i), the term `unexpended 
                        TANF balances' 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 
                                subsection (a)(5) before fiscal year 
                                2000) but not yet expended as of the 
                                end of the fiscal year preceding the 
                                fiscal year for which the State would, 
                                in the absence of this subparagraph, be 
                                considered a needy State under this 
                                subsection; and
                                    ``(II) the total amount of grants 
                                made to the State under subsection (a) 
                                (other than welfare-to-work grants made 
                                under subsection (a)(5) before fiscal 
                                year 2000) but not yet expended as of 
                                the end of such preceding fiscal year, 
                                plus the difference between--
                                            ``(aa) the pro rata share 
                                        of the current fiscal year 
                                        grant to be made under 
                                        subsection (a) to the State; 
                                        and
                                            ``(bb) current year 
                                        expenditures of the total 
                                        amount of grants made to the 
                                        State 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.
                    ``(B) Failure to satisfy maintenance of effort 
                requirement.--Notwithstanding paragraph (3) of this 
                subsection, a State that fails to satisfy the 
                requirement of section 409(a)(7) with respect to a 
                fiscal year shall not be a needy State under this 
                subsection for that fiscal year.''.
    (c) Clarification of Reporting Requirements.--Paragraph (6) (as so 
redesignated by subsection (b)(2) of this section) of section 403(b) 
(42 U.S.C. 603(b)) 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''.
    (d) Elimination of Penalty for Failure to Maintain 100 Percent 
Maintenance of Effort.--Section 409(a) (42 U.S.C. 609(a)) is amended--
            (1) by striking paragraph (10); and
            (2) be redesignating paragraphs (11) through (14) as 
        paragraphs (10) through (13), respectively.

SEC. 209. ELIGIBILITY OF PUERTO RICO, THE UNITED STATES VIRGIN ISLANDS, 
              AND GUAM FOR THE SUPPLEMENTAL GRANT FOR POPULATION 
              INCREASES, THE CONTINGENCY FUND, AND MANDATORY CHILD CARE 
              FUNDING.

    (a) Supplemental Grant for Population Increases.--
            (1) In general.--Section 403(a)(3)(D)(iii) (42 U.S.C. 
        603(a)(3)(D)(iii)) is amended by striking ``and the District of 
        Columbia.'' and inserting ``, the District of Columbia, Puerto 
        Rico, the United States Virgin Islands, and Guam. For fiscal 
        years beginning after the effective date of this sentence, this 
        paragraph shall be applied and administered as if the term 
        `State' included the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, and Guam for fiscal year 1998 and 
        thereafter.''.
            (2) Grant payment disregarded for purposes of section 1108 
        limitation.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is 
        amended by inserting ``, or any payment made to the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        or Guam under section 403(a)(3)'' before the period.
    (b) Contingency Fund.--
            (1) In general.--Section 403(b)(7) (42 U.S.C. 603(b)(7)) is 
        amended by striking ``and the District of Columbia'' and 
        inserting ``, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, and Guam.''.
            (2) Grant payment disregarded for purposes of section 1108 
        limitation.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as 
        amended by subsection (a)(2) of this section, is amended by 
        inserting ``or 403(b)'' after ``403(a)(3)''.
    (c) Child Care Entitlement Funds.--
            (1) In general.--Section 418(d) (42 U.S.C. 618(d)) is 
        amended by striking ``and the District of Columbia'' and 
        inserting ``, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, and Guam''.
            (2) Amount of payment.--
                    (A) General entitlement.--Section 418(a)(1) (42 
                U.S.C. 618(a)(1)) is amended by striking ``the greater 
                of--'' and all that follows and inserting the 
                following:
                    ``(A) in the case of the Commonwealth of Puerto 
                Rico, the United States Virgin Islands, and Guam, 60 
                percent of the amount required to be paid to the State 
                for fiscal year 2001 under the Child Care and 
                Development Block Grant Act of 1990; or
                    ``(B) in the case of any other State, the greater 
                of--
                            ``(i) the total amount required to be paid 
                        to the State under section 403 for fiscal year 
                        1994 or 1995 (whichever is greater) with 
                        respect to expenditures for child care under 
                        subsections (g) and (i) of section 402 (as in 
                        effect before October 1, 1995); or
                            ``(ii) the average of the total amounts 
                        required to be paid to the State for fiscal 
                        years 1992 through 1994 under the subsections 
                        referred to in clause (i).''.
                    (B) Allotment of remainder.--Section 418(a)(2)(B) 
                (42 U.S.C. 618(a)(2)(B)) is amended to read as follows:
                    ``(B) Allotments to states.--Of the total amount 
                available for payments to States under this paragraph, 
                as determined under subparagraph (A) of this 
                paragraph--
                            ``(i) an amount equal to 65 percent of the 
                        amount required to be paid to each of the 
                        Commonwealth of Puerto Rico, the United States 
                        Virgin Islands, and Guam for fiscal year 2001 
                        under the Child Care and Development Block 
                        Grant Act of 1990, shall be allotted to the 
                        Commonwealth of Puerto Rico, the United States 
                        Virgin Islands, and Guam, respectively; and
                            ``(ii) the remainder shall be allotted 
                        among the other States based on the formula 
                        used for determining the amount of Federal 
                        payments to each State under section 403(n) of 
                        this Act (as in effect before October 1, 
                        1995).''.
            (3) Grant payment disregarded for purposes of section 1108 
        limitation.--Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as 
        amended by subsections (a)(2) and (b)(2) of this section, is 
        amended by striking ``or 403(b)'' and inserting ``, 403(b), or 
        418''.

 TITLE III--ACCESS TO EDUCATION, TRAINING, AND REHABILITATIVE SERVICES

SEC. 301. EDUCATION AND TRAINING.

    (a) Vocational and Postsecondary Education.--
            (1) In general.--Section 407(d)(8) is amended to read as 
        follows:
            ``(8) vocational education and training and postsecondary 
        education that is a requirement of the individual's individual 
        responsibility plan under section 408(b) (not to exceed 24 
        months with respect to any individual);''.
            (2) Elimination of recipients completing secondary school 
        from limit on number of tanf recipients participating in 
        vocational education training.--
                    (A) In general.--Section 407(c)(2)(D) (42 U.S.C. 
                607(c)(2)(D)) is amended by striking ``educational 
                training, or (if the month is in fiscal year 2000 or 
                thereafter) deemed to be engaged in work for the month 
                by reason of subparagraph (C) of this paragraph'' and 
                inserting ``education and training (determined without 
                regard to any individual described in subparagraph 
                (C))''.
                    (B) Conforming amendments.--
                            (i) Section 407(c)(2)(C)(ii) (42 U.S.C. 
                        607(c)(2)(C)(ii) is amended by inserting ``, 
                        including vocational education and training,'' 
                        after ``employment''.
                            (ii) Section 407(c)(2)(D) (42 U.S.C. 
                        607(c)(2)(D)) is amended in the heading, by 
                        striking ``educational'' and inserting 
                        ``vocational education''.
    (b) State Option to Treat Limited Number of Participants in 
Postsecondary Educational Activities as Engaged in Work.--
            (1) In general.--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 limited number of 
                participants in postsecondary educational activities as 
                engaged in work.--
                            ``(i) In general.--For purposes of 
                        determining monthly participation rates under 
                        subsection (b)(1)(B)(i), a State may treat a 
                        recipient who has participated in postsecondary 
                        educational activities in connection with a 
                        course of study, training, study time, 
                        employment, or work experience for an average 
                        of not less than 24 hours (or, in the case of a 
                        recipient described in subparagraph (B) of this 
                        paragraph, 20 hours) per week in a month as 
                        engaged in work for the month, subject to 
                        clauses (ii) and (iii) of this subparagraph.
                            ``(ii) Limitation.--The number of families 
                        that include a recipient treated as engaged in 
                        work for a month by reason of clause (i) may 
                        not exceed 10 percent of the average monthly 
                        number of families to which assistance is 
                        provided under the State program funded under 
                        this part during the fiscal year.
                            ``(iii) Work required after 24 months.--A 
                        State may not treat a recipient as engaged in 
                        work for a month by reason of clause (i) after 
                        the first 24 months of such treatment, unless 
                        the recipient works for an average of not less 
                        than 15 hours per week in the month. ''.
            (2) Conforming amendments.--
                    (A) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)), 
                as amended by subsection (a)(2)(A) of this section, is 
                amended--
                            (i) in the heading, by inserting 
                        ``certain'' after ``participation in''; and
                            (ii) by inserting ``and without regard to 
                        individuals treated as engaged in work by 
                        reason of subparagraph (E)'' before the last 
                        close parenthesis.
                    (B) Section 407(d)(8), as amended by subsection 
                (a)(1) of this section, is amended by inserting ``, or 
                such longer period as the State may allow for an 
                individual who is treated as engaged in work by reason 
                of subsection (c)(2)(E)'' after ``any individual''.

SEC. 302. REHABILITATIVE SERVICES.

    (a) Additional Work Activities.--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) rehabilitative services and employment-related 
        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, if the 
        obtaining of such services is a requirement of the individual's 
        individual responsibility plan under section 408(b) (not to 
        exceed 6 months, or, if the obtaining of the services for a 
        longer period is a requirement of the individual's plan under 
        section 408(b), not to exceed 18 months, but only if, during 
        the last 12 of such 18 months, such services are combined with 
        work or job-readiness activities), until an individual 
        successfully completes obtaining the services.''.
    (b) Conforming Amendments.--Section 407(c)(1) (42 U.S.C. 607(c)(1)) 
is amended by striking ``or (12)'' and inserting ``(12), or (13)''.

                       TITLE IV--REDUCING POVERTY

SEC. 401. POVERTY REDUCTION.

    Section 401(a) (42 U.S.C. 601(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) reduce the extent and severity of poverty and promote 
        self-sufficiency among families with children.''.

SEC. 402. EMPLOYMENT ENHANCEMENT.

    (a) In General.--Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is 
amended by adding at the end the following:
                            ``(vii) Establish goals and take action to 
                        improve initial earnings, job advancement, and 
                        employment retention for individuals in and 
                        individuals leaving the program.''.
    (b) Inclusion in Annual Reports of Progress in Achieving Employment 
Advancement Goals.--Section 411(b) (42 U.S.C. 611(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and'' ; and
            (3) by adding at the end the following:
            ``(5) in each report submitted after fiscal year 2005, the 
        progress made by the State in achieving the goals referred to 
        in section 402(a)(1)(A)(vii) in the most recent State plan 
        submitted pursuant to section 402(a).''.

         TITLE V--SUPPORTING FAMILIES AND RESPONSIBLE PARENTING

SEC. 501. FAMILY FORMATION FUND.

    Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as 
follows:
            ``(2) Family formation fund.--
                    ``(A) In general.--The Secretary shall provide 
                grants to States and localities for research, technical 
                assistance, and demonstration projects to promote and 
                fund best practices in the following areas:
                            ``(i) Promoting the formation of 2-parent 
                        families.
                            ``(ii) Reducing teenage pregnancies.
                            ``(iii) Increasing the ability of 
                        noncustodial parents to financially support and 
                        be involved with their children.
                    ``(B) Allocation of funds.--In making grants under 
                this paragraph, the Secretary shall ensure that not 
                less than 30 percent of the funds made available 
                pursuant to this paragraph for a fiscal year are used 
                in each of the areas described in subparagraph (A).
                    ``(C) Consideration of domestic violence impact.--
                In making grants under this paragraph, the Secretary 
                shall consider the potential impact of a project on the 
                incidence of domestic violence.
                    ``(D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for each of fiscal 
                years 2006 through 2010 $100,000,000 for grants under 
                this paragraph.''.

SEC. 502. TWO-PARENT ELIGIBILITY.

    (a) Ban on Imposition of Stricter Eligibility Criteria for 2-Parent 
Families.--
            (1) 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 any benefit or service funded under this part 
        or funded with non-Federal funds that are qualified 
        expenditures of the State under section 409(a)(7), the State 
        shall not impose a requirement that does not apply in 
        determining the eligibility of a 1-parent family for the 
        benefit or service.''.
            (2) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended 
        by section 707(b)(1) of this Act, is amended by inserting after 
        paragraph (5) the following:
            ``(6) 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 that 
                does not exceed 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.''.
            (3) Assurance of equal treatment.--Section 402(a) (42 
        U.S.C. 602(a)), as amended by section 108(b) of this Act, is 
        amended by adding at the end the following:
            ``(9) Certification of equal treatment of 2-parent 
        families.--The chief executive officer of the State shall 
        submit to the Secretary a certification that in conducting the 
        State program funded under this part, the State does not have 
        rules or procedures that discriminate against 2-parent 
        families.''.
    (b) Elimination of Separate Work Participation Rate for 2-Parent 
Families.--Section 407 (42 U.S.C. 607) is amended--
            (1) in subsection (a), by striking paragraph (2); and
            (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)'';
                    (C) in paragraph (5), by striking ``rates'' and 
                inserting ``rate''; and
                    (D) by redesignating paragraphs (3), (4), and (5) 
                as paragraphs (2), (3), and (4), respectively.

SEC. 503. CHILD SUPPORT.

    (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 section 454(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)(B)(i), but not 
        both.
            ``(7) State option to pass through additional support with 
        federal cost-sharing.--
                    ``(A) In general.--Notwithstanding paragraph (2), 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 formerly received 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 
                        paragraph (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 (e) of section 503 of the 
        Work, Family, and Opportunity Promotion Act shall not apply 
        with respect to the State, notwithstanding subsection (f)(1) of 
        such section 503.''.
                    (C) Approval of estimation procedures.--Not later 
                than October 1, 2006, 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.--
            (1) In general.--Section 454 (42 U.S.C. 654) as amended by 
        subsection (b)(1)(B) of this section, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (33);
                    (B) by striking the period at the end of paragraph 
                (34) and inserting ``; and''; and
                    (C) 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.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on October 1, 2006.
    (d) State Option to Discontinue Pre-1997 Support Assignments.--
Section 457(b) (42 U.S.C. 657(b)) is amended by striking ``shall'' and 
inserting ``may''.
    (e) Conforming Amendments.--Section 404(a) (42 U.S.C. 604(a)) is 
amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; or''; and
            (3) 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.''.
    (f) Effective Date.--
            (1) In general.--Except as provided in subsection (c)(2), 
        the amendments made by this section shall take effect on 
        October 1, 2009, 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.--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, 2009.

                TITLE VI--FAIRNESS FOR LEGAL IMMIGRANTS

SEC. 601. TREATMENT OF ALIENS UNDER THE TANF PROGRAM.

    (a) Exception to 5-Year Ban for Qualified Aliens.--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) Benefits under the Temporary Assistance for 
                Needy Families program described in section 
                402(b)(3)(A).''.
    (b) Benefits not Subject to Reimbursement.--Section 423(d) of the 
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 
(8 U.S.C. 1138a note) is amended by adding at the end the following:
            ``(12) Benefits 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(j) of 
        the Social Security Act.''.
    (c) Treatment of Aliens.--Section 408 (42 U.S.C. 608), as amended 
by sections 107 and 108 of this Act, is further amended by adding at 
the end the following:
    ``(j) Special Rules Relating to the Treatment of 213a Aliens.--
            ``(1) In general.--In determining whether a 213A alien is 
        eligible for cash assistance under a State program funded under 
        this part, and in determining the amount or types of such 
        assistance to be provided to the alien, the State shall apply 
        the rules of paragraphs (1), (2), (3), (5), and (6) of 
        subsection (f) of this section by substituting `213A' for `non-
        213A' each place it appears, subject to section 421(e) of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996, and subject to section 421(f) of such Act (which shall 
        be applied by substituting `section 408(j) of the Social 
        Security Act' for `subsection (a)').
            ``(2) 213a alien defined.--An alien is a 213A alien for 
        purposes of this subsection if the affidavit of support or 
        similar agreement with respect to the alien that was executed 
        by the sponsor of the alien's entry into the United States was 
        executed pursuant to section 213A of the Immigration and 
        Nationality Act.''.
    (d) Effective Date and Applicability.--
            (1) Effective date.--The amendments made by this section 
        shall take effect October 1, 2005.
            (2) Applicability.--The amendments made by this section 
        shall apply to benefits provided on or after the effective date 
        of this section.

SEC. 602. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID 
              PROGRAM AND SCHIP.

    (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 new paragraph:
    ``(4)(A) A State may elect (in a plan amendment under this title) 
to provide medical assistance under this title, notwithstanding 
sections 401(a), 402(b), 403, and 421 of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996, for aliens who are 
lawfully residing in the United States (including battered aliens 
described in section 431(c) of such Act) and who are otherwise eligible 
for such assistance, within either or both 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) 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.''.
    (b) SCHIP.--Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) as amended 
by section 803 of the Medicare, Medicaid, and SCHIP Benefits 
Improvement and Protection Act of 2000, as enacted into law by section 
1(a)(6) of Public Law 106-554, is amended by redesignating 
subparagraphs (C) and (D) as subparagraph (D) and (E), respectively, 
and by inserting after subparagraph (B) the following new subparagraph:
                    ``(C) Section 1903(v)(4) (relating to optional 
                coverage of categories of permanent resident alien 
                children), but only if the State has elected to apply 
                such section to the category of children under title 
                XIX.''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2005, and apply to medical assistance and child 
health assistance furnished on or after such date.

SEC. 603. ELIGIBILITY OF DISABLED CHILDREN WHO ARE QUALIFIED ALIENS FOR 
              SSI.

    (a) In General.--Section 402(a)(2) of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) 
is amended by inserting after subparagraph (K) the following new 
subparagraph:
                    ``(L) SSI exception for disabled children.--With 
                respect to eligibility for benefits for the specified 
                Federal program described in paragraph (3)(A), 
                paragraph (1) shall not apply to a child who is 
                considered disabled for purposes of the supplemental 
                security income program under title XVI of the Social 
                Security Act.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2005, and apply to benefits furnished on or after 
such date.

SEC. 604. SSI EXTENSION FOR HUMANITARIAN IMMIGRANTS.

    Section 402(a)(2) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended 
by adding at the end the following:
                    ``(M) Two-year ssi extension through fiscal year 
                2008.--
                            ``(i) In general.--With respect to 
                        eligibility for benefits for the specified 
                        Federal program described in paragraph (3)(A), 
                        the 7-year period described in subparagraph (A) 
                        shall be deemed to be a 9-year period during 
                        fiscal years 2005 through 2008.
                            ``(ii) Aliens whose benefits ceased in 
                        prior fiscal years.--
                                    ``(I) In general.--Beginning on the 
                                date of the enactment of the Work, 
                                Family, and Opportunity Promotion Act, 
                                any qualified alien rendered ineligible 
                                for the specified Federal program 
                                described in paragraph (3)(A) during 
                                fiscal years prior to fiscal year 2005 
                                solely by reason of the termination of 
                                the 7-year period described in 
                                subparagraph (A) shall be eligible for 
                                such program for an additional 2-year 
                                period in accordance with this 
                                subparagraph, if such alien meets all 
                                other eligibility factors under title 
                                XVI of the Social Security Act.
                                    ``(II) Payment of benefits.--
                                Benefits paid under subparagraph (I) 
                                shall be paid prospectively over the 
                                duration of the qualified alien's 
                                renewed eligibility.''.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. 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--
            (1) in the subsection heading, by striking ``Assistance'' 
        and inserting ``Benefits or Services''; and
            (2) after the heading, by striking ``assistance'' and 
        inserting ``any benefit or service that may be provided''.

SEC. 702. DEFINITION OF ASSISTANCE.

    (a) In General.--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 
                payment, by cash, voucher, or other means, to or for an 
                individual or family for the purpose of meeting a 
                subsistence need of the individual or family (including 
                food, clothing, shelter, and related items, but not 
                including costs of transportation or child care).
                    ``(B) Exception.--The term `assistance' does not 
                include a payment described in subparagraph (A) to or 
                for an individual or family on a short-term, 
                nonrecurring basis (as defined by the State).''.
    (b) Conforming Amendments.--
            (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by 
        striking ``assistance'' and inserting ``aid''.
            (2) Section 404(f) (42 U.S.C. 604(f)) is amended by 
        striking ``assistance'' and inserting ``benefits or services''.
            (3) Section 408(a)(5)(B)(i) (42 U.S.C. 608(a)(5)(B)(i)) is 
        amended in the heading by striking ``assistance'' and inserting 
        ``aid''.

SEC. 703. CONTINUATION OF PRE-WELFARE REFORM WAIVERS.

    Section 415 (42 U.S.C. 615) is amended by adding at the end the 
following:
    ``(c) Continuation of Waivers Approved or Submitted Before Date of 
Enactment of Welfare Reform.--Notwithstanding subsection (a), with 
respect to any State that is operating under a waiver described in 
subsection (a) which would otherwise expire on a date that occurs in 
the period that begins on September 30, 2002, and ends on September 30, 
2008, the State may elect to continue to operate under the waiver, on 
the same terms and conditions as applied to the waiver on the day 
before such date, through September 30, 2010.''.

SEC. 704. MAINTENANCE OF EFFORT.

    (a) Inclusion of Child Support Arrearages Distributed to Families 
No Longer Receiving Assistance.--Section 409(a)(7)(B)(i) (42 U.S.C. 
609(a)(7)(B)(i)) is amended--
            (1) in subclause (I)(aa), by striking ``457(a)(1)(B)'' and 
        inserting ``457(a)(1)''; and
            (2) 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 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.''.
    (b) Reauthorization.--Section 409(a)(7) (42 U.S.C. 609(a)(7)) is 
amended--
            (1) in subparagraph (A) by striking ``1998'' and all that 
        follows through ``2006'' and inserting ``2006, 2007, 2008, 
        2009, or 2010''; and
            (2) in subparagraph (B)(ii)--
                    (A) by striking ``for fiscal years 1997 through 
                2005,''; and
                    (B) by inserting ``preceding'' before ``fiscal 
                year''.

SEC. 705. FUNDING FOR TRIBAL TANF PROGRAMS.

    Section 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by 
striking ``1997'' and all that follows through ``2003'' and inserting 
``2005 through 2010''.

SEC. 706. FUNDING FOR FAMILIES ASSISTED BY A TERRITORY PROGRAM.

    (a) Increase in Mandatory Ceiling Amount.--Section 1108(c)(4) (42 
U.S.C. 1308(c)(4)) is amended--
            (1) in subparagraph (A), by striking ``$107,255,000'' and 
        inserting ``$109,936,375'';
            (2) in subparagraph (B), by striking ``$4,686,000'' and 
        inserting ``$4,803,150'';
            (3) in subparagraph (C), by striking ``$3,554,000'' and 
        inserting ``$3,642,850''; and
            (4) in subparagraph (D), by striking ``$1,000,000'' and 
        inserting ``$1,250,000''.
    (b) Reauthorization of Matching Grants.--Section 1108(b)(2) (42 
U.S.C. 1308(b)(2)) is amended by striking ``fiscal years 1997 through 
2003'' and inserting ``each of fiscal years 2006 through 2010''.

SEC. 707. REPEAL OF FEDERAL LOAN FUND FOR STATE WELFARE PROGRAMS.

    (a) Repeal.--Section 406 (42 U.S.C. 606) is repealed.
    (b) Conforming Amendments.--
            (1) Section 409(a) (42 U.S.C. 609(a)) is amended by 
        striking paragraph (6).
            (2) Section 412 (42 U.S.C. 612) is amended by striking 
        subsection (f) and redesignating subsections (g) through (i) as 
        subsections (f) through (h), respectively.
            (3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by 
        striking ``406,''.

SEC. 708. BAN ON USING FEDERAL TANF FUNDS TO REPLACE STATE AND LOCAL 
              SPENDING THAT DOES NOT MEET THE DEFINITION OF QUALIFIED 
              STATE EXPENDITURES.

    (a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)), as amended by 
section 502(a)(1) of this Act, is further amended by adding at the end 
the following:
            ``(13) Ban on using federal tanf funds to replace state or 
        local spending that does not meet the definition of qualified 
        state expenditures.--A State to which a grant is made under 
        section 403 and a sub-State entity that receives funds from 
        such a grant shall not expend any part of the grant funds to 
        supplant State or local spending for benefits or services which 
        are not qualified State expenditures (within the meaning of 
        section 409(a)(7)(B)(i)).''.
    (b) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended by 
section 208(d) of this Act, is further amended by adding at the end the 
following:
            ``(14) Penalty for using federal tanf funds to replace 
        state or local spending that does not meet the definition of 
        qualified state expenditures.--
                    ``(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)(13) 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. 709. EXTENSION OF FUNDING OF STUDIES AND DEMONSTRATIONS.

    Section 413(h)(1) (42 U.S.C. 613(h)(1)) is amended by striking 
``2002'' and inserting ``2010''.

SEC. 710. LONGITUDINAL STUDIES OF EMPLOYMENT AND EARNINGS OF TANF 
              LEAVERS.

    Section 413 (42 U.S.C. 613) is amended--
            (1) in subsection (h)(1)--
                    (A) by striking ``and'' at the end of subparagraph 
                (C);
                    (B) by striking the period and inserting ``; and''; 
                and
                    (C) by adding at the end the following:
                    ``(E) the cost of conducting the studies described 
                in subsection (k).''; and
            (2) by adding at the end the following:
    ``(k) Longitudinal Studies of Employment and Earnings of TANF 
Leavers.--
            ``(1) In general.--The Secretary, directly or through 
        grants, contracts, or interagency agreements shall conduct a 
        study in each eligible State of a statistically relevant cohort 
        of individuals who leave the State program funded under this 
        part during fiscal year 2006 and individuals who leave the 
        program during fiscal year 2008, which uses State unemployment 
        insurance data to track the employment and earnings status of 
        the individuals during the 3-year period beginning at the time 
        the individuals leave the program.
            ``(2) Reports.--The Secretary shall annually publish the 
        findings of the studies conducted pursuant to paragraph (1) of 
        this subsection, and shall annually publish the earnings data 
        used in making determinations under section 407(b).''.

SEC. 711. STUDY BY THE CENSUS BUREAU.

    (a) In General.--Section 414(a) (42 U.S.C. 614(a)) is amended to 
read as follows:
    ``(a) In General.--The Bureau of the Census shall implement a new 
longitudinal survey of program dynamics, developed in consultation with 
the Secretary and made available to interested parties, to allow for 
the assessment of the outcomes of continued welfare reform on the 
economic and child well-being of low-income families with children, 
including those who received assistance or services from a State 
program funded under this part, and, to the extent possible, shall 
provide State representative samples.''.
    (b) Appropriation.--Section 414(b) (42 U.S.C. 614(b)) is amended by 
striking ``1996,'' and all that follows through ``2003'' and inserting 
``2006 through 2010''.

     TITLE VIII--EXTENSION OF TANF PROGRAM THROUGH FISCAL YEAR 2005

SEC. 801. EXTENSION OF TANF PROGRAM AND RELATED AUTHORITIES THROUGH 
              FISCAL YEAR 2005.

    (a) In General.--Activities authorized by part A of title IV of the 
Social Security Act, and by sections 429A, 510, 1108(b), 1130(a) and 
1925 of such Act, shall continue through September 30, 2005, in the 
manner authorized for fiscal year 2004, notwithstanding section 
1902(e)(1)(A) of such Act, and out of any money in the Treasury of the 
United States not otherwise appropriated, there are hereby appropriated 
such sums as may be necessary for such purpose. Grants and payments may 
be made pursuant to this authority through the fourth quarter of fiscal 
year 2005 at the level provided for such activities through the fourth 
quarter of fiscal year 2004.
    (b) Conforming Amendment.--
            (1) In general.--Section 403(a)(3)(H)(ii) (42 U.S.C. 
        603(a)(3)(H)(ii)) is amended by striking ``March 31'' and 
        inserting ``September 30''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act.

                        TITLE IX--EFFECTIVE DATE

SEC. 901. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, this Act 
and the amendments made by this Act shall take effect on October 1, 
2005.
                                 <all>