II 110th CONGRESS 2d Session S. 2820 IN THE SENATE OF THE UNITED STATES April 3, 2008 Mr. Rockefeller (for himself and Mr. Graham) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend part A of title IV of the Social Security Act to extend and expand the number of States qualifying for supplemental grants under the Temporary Assistance for Needy Families program.

1.

Extension and expansion of TANF supplemental grants

(a)

In general

Section 403(a)(3) of the Social Security Act (42 U.S.C. 603(a)(3)) is amended to read as follows: (3)

Supplemental grant for certain States

(A)

In general

Each qualifying State shall, subject to subparagraphs (B) and (F), be entitled to receive from the Secretary for each of fiscal years 2009 and 2010 the following: (i)

Qualifying States that received a supplemental grant for fiscal year 2008 and have below average TANF resources per child

In the case of a qualifying State that is described in clauses (i) and (ii) of subparagraph (C), an amount equal to the sum of— (I)the total amount required to be paid to the State under this paragraph (as in effect on October 1, 2007) for fiscal year 2008; and (II)the lesser of— (aa)the amount equal to 2.5 percent of the total amount required to be paid to the State under paragraph (1) for the fiscal year, and (bb)$2,500,000. (ii)

Qualifying States that did not receive a supplemental grant for fiscal year 2009 and have below average TANF resources per child

In the case of a qualifying State that is only described in clause (ii) of subparagraph (C), an amount equal to the lesser of— (I)the amount equal to 10 percent of the total amount required to be paid to the State under paragraph (1) for the fiscal year, and (II)$10,000,000. (iii)

Other qualifying states

In the case of a qualifying State that is only described in clause (i) of subparagraph (C), the total amount required to be paid to the State under this paragraph (as in effect on October 1, 2007) for fiscal year 2008. (B)

Limitation

The amount to be paid to a State under clause (i)(II) or (ii) of subparagraph (A) for any fiscal year shall be reduced (but not below zero) by the amount that is equal to the excess, if any, of— (i)the product obtained by multiplying— (I)the level of welfare spending per poor child by the State (calculated without regard to any reduction made under this subparagraph) for such fiscal year; by (II)the number of children under the age of 18, according to the 2006 American Community Survey, who were residents of the State and who were members of families whose income was below the poverty line; over (ii)the product obtained by multiplying— (I)the national average level of State welfare spending per poor child for such fiscal year; by (II)the number of children under the age of 18, according to the 2006 American Community Survey, who were residents of the State and who were members of families whose income was below the poverty line. (C)

Qualifying State

For purposes of this paragraph, a State is a qualifying State for a fiscal year if— (i)the State was entitled to receive a grant under this paragraph (as in effect on October 1, 2007) for fiscal year 2008; or (ii)the level of welfare spending per poor child by the State for fiscal year 2008 is less than the national average level of State welfare spending per poor child for such fiscal year. (D)

Definitions

In this paragraph: (i)

Level of welfare spending per poor child

The term level of welfare spending per poor child means, with respect to a State and a fiscal year— (I)the sum of— (aa)the total amount required to be paid to the State under paragraph (1) for such fiscal year; (bb)the total amount required to be paid to the State, if any, under this paragraph (as in effect on October 1, 2007) for such fiscal year; and (cc)80 percent of the historic State expenditures (as defined in section 409(a)(7)(B)(iii)); divided by (II)the number of children under the age of 18, according to the 2006 American Community Survey, who were residents of the State and who were members of families whose income was below the poverty line. (ii)

National average level of State welfare spending per poor child

The term national average level of State welfare spending per poor child means, with respect to a fiscal year, an amount equal to— (I)the sum of— (aa)the total amount required to be paid to the States under paragraph (1) for such fiscal year; (bb)the total amount required to be paid to the States under this paragraph for such fiscal year; and (cc)the aggregate amount for all States of 80 percent of the historic State expenditures (as defined in section 409(a)(7)(B)(iii)) for each State; divided by (II)the number of children under the age of 18, according to the 2006 American Community Survey, who were residents of any State and who were members of families whose income was below the poverty line. (iii)

State

The term State means each of the 50 States of the United States and the District of Columbia. (E)

Appropriation

Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2009 and 2010 such sums as are necessary for grants under this paragraph, in a total amount not to exceed $470,000,000 for each such fiscal year. (F)

Grants reduced pro rata if insufficient appropriations

If the amount appropriated pursuant to subparagraph (E) for a fiscal year is less than the total amount of payments otherwise required to be made under this paragraph for the fiscal year, then the amount otherwise payable to any State for the fiscal year under this paragraph shall be reduced by a percentage equal to the amount so appropriated divided by such total amount. . (b)

Effective date

The amendments made by this section shall take effect on October 1, 2008.