[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1904 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1904

   To provide information on total spending on means-tested welfare 
 programs, to provide additional work requirements, and to provide an 
        overall spending limit on means-tested welfare programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 17, 2011

 Mr. DeMint (for himself, Mr. Lee, Mr. Vitter, Mr. Paul, Mr. Sessions, 
Mr. Graham, Mr. Inhofe, and Mr. Coburn) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To provide information on total spending on means-tested welfare 
 programs, to provide additional work requirements, and to provide an 
        overall spending limit on means-tested welfare programs.

    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 ``Welfare Reform Act of 2011''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                         TITLE I--TANF REFORMS

Sec. 101. Short title.
Sec. 102. Elimination of temporary modification of the caseload 
                            reduction credit.
Sec. 103. Reduction in funding of State family assistance grants.
             TITLE II--MODIFICATIONS TO FOOD STAMP PROGRAM

Sec. 201. Restoration of Act short title and references to the food 
                            stamp program.
Sec. 202. Work requirements.
Sec. 203. Definition of food.
Sec. 204. Termination of benefit increase.
 TITLE III--REPORTING OF MEANS-TESTED WELFARE SPENDING IN PRESIDENT'S 
                           BUDGET SUBMISSION

Sec. 301. Additional information in President's budget submission.
       TITLE IV--AGGREGATE CAP FOR MEANS-TESTED WELFARE SPENDING

Sec. 401. Definition of means-tested welfare spending.
Sec. 402. Reports to budget committees.
Sec. 403. Content of concurrent resolutions on the budget.
Sec. 404. Allocations of means-tested welfare spending.
Sec. 405. Reconciliation.
              TITLE V--GRANTS TO PROMOTE SELF-SUFFICIENCY

Sec. 501. Grants to States.
              TITLE VI--PROHIBITION ON FUNDING OF ABORTION

Sec. 601. Prohibition on funding for abortions.
Sec. 602. Prohibition on funding for health benefits plans that cover 
                            abortion.
Sec. 603. Prohibition on tax benefits relating to abortion.
Sec. 604. Construction relating to separate coverage.
Sec. 605. Construction relating to the use of non-Federal funds for 
                            health coverage.
Sec. 606. Treatment of abortions related to rape, incest, or preserving 
                            the life of the mother.

                         TITLE I--TANF REFORMS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Welfare Reform Restoration Act''.

SEC. 102. ELIMINATION OF TEMPORARY MODIFICATION OF THE CASELOAD 
              REDUCTION CREDIT.

    (a) In General.--Section 407(b)(3)(A)(i) of the Social Security Act 
(42 U.S.C. 607(b)(3)(A)(i)) is amended by striking ``(or if the 
immediately preceding fiscal year is fiscal year 2008, 2009, or 2010, 
then, at State option, during the emergency fund base year of the State 
with respect to the average monthly assistance caseload of the State 
(within the meaning of section 403(c)(9)), except that, if a State 
elects such option for fiscal year 2008, the emergency fund base year 
of the State with respect to such caseload shall be fiscal year 
2007))''.
    (b) Conforming Amendments.--Section 2101 of the American Recovery 
and Reinvestment Act of 2009 (123 Stat. 448-449; Public Law 111-5) is 
amended--
            (1) in subsection (a)(2), by striking ``, except that 
        paragraph (9) of such subsection shall remain in effect until 
        October 1, 2011, but only with respect to section 
        407(b)(3)(A)(i) of such Act''; and
            (2) by striking subsection (d)(2).

SEC. 103. REDUCTION IN FUNDING OF STATE FAMILY ASSISTANCE GRANTS.

    Section 403(a)(1)(C) of the Social Security Act (42 U.S.C. 
603(a)(1)(C)) is amended by striking ``2003 $16,566,542,000'' and 
inserting ``2011 and each succeeding fiscal year $15,566,042,000, 
notwithstanding any other provision of law''.

             TITLE II--MODIFICATIONS TO FOOD STAMP PROGRAM

SEC. 201. RESTORATION OF ACT SHORT TITLE AND REFERENCES TO THE FOOD 
              STAMP PROGRAM.

    (a) In General.--Effective June 18, 2008, sections 4001 and 4002 of 
the Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
Stat. 1853) and the amendments made by those sections are repealed.
    (b) Application.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et 
seq.) and each provision of law amended by section 4001 or 4002 of the 
Food, Conservation, and Energy Act of 2008 (Public Law 110-246; 122 
Stat. 1853), shall be applied and administered as if those sections and 
the amendments made by those sections had not been enacted.

SEC. 202. WORK REQUIREMENTS.

    (a) Declaration of Policy.--Section 2 of the Food Stamp Act of 1977 
(7 U.S.C. 2011) is amended by adding at the end the following: 
``Congress further finds that it should also be the purpose of the food 
stamp program to increase employment, to encourage healthy marriage, 
and to promote prosperous self-sufficiency, which means the ability of 
households to maintain an income above the poverty level without 
services and benefits from the Federal Government.''.
    (b) Definitions.--Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 
2012) is amended by adding at the end the following:
    ``(w) Able-Bodied, Work-Eligible Adult.--
            ``(1) In general.--The term `able-bodied, work-eligible 
        adult' means an individual who--
                    ``(A) is more than 18, and less than 63, years of 
                age;
                    ``(B) is not physically or mentally incapable of 
                work; and
                    ``(C) is not the full-time caretaker of a disabled 
                adult dependent.
            ``(2) Physically or mentally incapable of work.--For 
        purposes of paragraph (1)(B), the term `physically or mentally 
        incapable of work' means an individual who--
                    ``(A) currently receives benefits under the 
                supplemental security income program established under 
                title XVI of the Social Security Act (42 U.S.C. 1381 et 
                seq.) or another program that provides recurring 
                benefits to individuals because the individual is 
                disabled and unable to work; or
                    ``(B) has been medically certified as physically or 
                mentally incapable of work and who has a credible 
                pending application for enrollment in the supplemental 
                security income program established under title XVI of 
                the Social Security Act (42 U.S.C. 1381 et seq.) or 
                another program that provides recurring benefits to 
                individuals because the individual is disabled and 
                unable to work.
    ``(x) Family Head.--The term `family head' means--
            ``(1) a biological parent who is lawfully present in the 
        United States and resides within a household with 1 or more 
        dependent children who are the biological offspring of the 
        parent; or
            ``(2) in the absence of a biological parent, a step parent, 
        adoptive parent, guardian, or adult relative who resides with 
        and provides care to the 1 or more children and is lawfully 
        present in the United States.
    ``(y) Family Unit.--The term `family unit' means--
            ``(1) an adult residing without dependent children;
            ``(2) a single-headed family with dependent children; or
            ``(3) a married couple family with dependent children.
    ``(z) Family With Dependent Children.--
            ``(1) In general.--The term `family with dependent 
        children' means a unit consisting of a family head, 1 or more 
        dependent children, and, if applicable, the married spouse of 
        the family head, all of whom share meals and reside within a 
        single household.
            ``(2) Multiple families in a household.--There may be more 
        than 1 family with dependent children in a single household.
    ``(aa) Married Couple Family With Dependent Children.--The term 
`married couple family with dependent children' means a family with 
dependent children that has both a family head and the married spouse 
of the family head residing with the family.
    ``(bb) Married Spouse of the Family Head.--The term `married spouse 
of the family head' means the lawfully married spouse of the family 
head who--
            ``(1) resides with the family head and dependent children; 
        and
            ``(2) is lawfully present in the United States.
    ``(cc) Member of a Family.--The term `member of a family' means the 
family head, married spouse if present, and all dependent children 
within a family with dependent children
    ``(dd) Monthly Potential Work Activation Population.--The term 
`monthly potential work activation population' means the sum of--
            ``(1) all able-bodied, work-eligible adults without 
        dependents who have received food stamp benefits and have 
        maintained less than 60 hours of paid employment during a 
        month;
            ``(2) all work-eligible single-headed families with 
        dependent children that have received food stamp benefits 
        during the month and have maintained less than 120 hours of 
        paid employment by the family head during the month; and
            ``(3) all work-eligible married couples with dependent 
        children that have received food stamp benefits during the 
        month and have maintained less than 120 combined hours of paid 
        employment between the family head and the married spouse, 
        summed together and counted jointly, during the month.
    ``(ee) Monthly Work Activation Participants.--The term `monthly 
work activation participants' means the sum of--
            ``(1) all able-bodied, work-eligible adults without 
        dependents who have received food stamp benefits and have 
        maintained--
                    ``(A) less than 60 hours of paid employment during 
                a month; and
                    ``(B) more than 60 hours of combined paid 
                employment and work activation activity during the 
                month;
            ``(2) all work-eligible single-headed families with 
        dependent children that have received food stamp benefits 
        during the month and include a family head who has maintained--
                    ``(A) less than 120 hours of paid employment during 
                the month; and
                    ``(B) more than 120 hours of combined paid 
                employment and work activation activity during the 
                month; and
            ``(3) all work-eligible married couples with dependent 
        children who have received food stamp benefits during the 
        month, and have maintained--
                    ``(A) less than 120 combined hours of paid 
                employment between the family head and the spouse, 
                combined, during the month; and
                    ``(B) more than 120 hours of combined paid 
                employment and work activation activity between the 
                family head and the married spouse, combined, during 
                the month.
    ``(ff) Single-Headed Family With Dependent Children.--The term 
`single-headed family with dependent children' means a family with 
dependent children that--
            ``(1) contains a family head residing with the family; but
            ``(2) does not have a married spouse of the family head 
        residing with the family.
    ``(gg) Work Activation.--
            ``(1) In general.--The term `work activation' means--
                    ``(A) supervised job search;
                    ``(B) community service activities;
                    ``(C) education and job training for individuals 
                who are family heads or married spouses of family 
                heads;
                    ``(D) workfare under section 20; or
                    ``(E) drug or alcohol treatment.
            ``(2) Supervised job search.--For purposes of paragraph 
        (1)(A), the term `supervised job search' means a job search 
        program that has the following characteristics:
                    ``(A) The job search occurs at an official location 
                where the presence and activity of the recipient can be 
                directly observed, supervised, and monitored.
                    ``(B) The recipient's entry, time on site, and exit 
                from the official job search location are recorded in a 
                manner that prevents fraud.
                    ``(C) The recipient is expected to remain and 
                undertake job search activities at the job search 
                center, except for brief, authorized departures for 
                specified off-site interviews.
                    ``(D) The quantity of time the recipient is 
                observed and monitored engaging in job search at the 
                official location is recorded for purposes of 
                compliance with section 29.
    ``(hh) Work Activation Ratio.--The term `work activation ratio' 
means the quotient obtained by dividing--
            ``(1) the number of work activation participants in a 
        month; by
            ``(2) the monthly potential work activation population for 
        the month.
    ``(ii) Work Activities.--The term `work activities' means--
            ``(1) paid employment;
            ``(2) work activation; or
            ``(3) a combination of both paid employment and work 
        activation.
    ``(jj) Work-Eligible Adult Without Dependent Children.--The term 
`work-eligible adult without dependent children' means an individual 
who--
            ``(1) is an able-bodied, work-eligible adult; and
            ``(2) is not a family head or the married spouse of a 
        family head.
    ``(kk) Work-Eligible Family Unit.--The term `work-eligible family 
unit' means--
            ``(1) an able-bodied, work-eligible adult without dependent 
        children;
            ``(2) a work-eligible single-headed family with dependent 
        children; or
            ``(3) a work-eligible married couple family with dependent 
        children.
    ``(ll) Work-Eligible Married Couple Family With Dependent 
Children.--The term `work-eligible married couple family with dependent 
children' means a married couple with dependent children that contains 
at least 1 work-eligible, able-bodied adult who is--
            ``(1) the family head; or
            ``(2) the married spouse of the family head.
    ``(mm) Work-Eligible Single-Headed Family With Dependent 
Children.--The term `work-eligible single-headed family with dependent 
children' means a single-headed family with dependent children that has 
a family head who is an able-bodied, work-eligible adult.''.
    (c) Conditions of Participation.--Section 6 of the Food Stamp Act 
of 1977 (7 U.S.C. 2015(d)) is amended by striking subsection (d) and 
inserting the following:
    ``(d) Conditions of Participation.--
            ``(1) Work requirements.--
                    ``(A) In general.--No able-bodied, work-eligible 
                adult shall be eligible to participate in the food 
                stamp program if the individual--
                            ``(i) refuses, at the time of application 
                        and every 12 months thereafter, to register for 
                        employment in a manner prescribed by the 
                        Secretary;
                            ``(ii) refuses without good cause to accept 
                        an offer of employment, at a site or plant not 
                        subject to a strike or lockout at the time of 
                        the refusal, at a wage not less than the higher 
                        of--
                                    ``(I) the applicable Federal or 
                                State minimum wage; or
                                    ``(II) 80 percent of the wage that 
                                would have applied had the minimum 
                                hourly rate under section 6(a)(1) of 
                                the Fair Labor Standards Act of 1938 
                                (29 U.S.C. 206(a)(1)) been applicable 
                                to the offer of employment;
                            ``(iii) refuses without good cause to 
                        provide a State agency with sufficient 
                        information to allow the State agency to 
                        determine the employment status or the job 
                        availability of the individual; or
                            ``(iv) voluntarily--
                                    ``(I) quits a job; or
                                    ``(II) reduces work effort and, 
                                after the reduction, is working less 
                                than 30 hours per week, unless another 
                                adult in the same family unit increases 
                                employment at the same time by an 
                                amount that is at least equal to the 
                                reduction in work effort by the first 
                                adult.
                    ``(B) Family unit ineligibility.--If an able-
                bodied, work-eligible adult is ineligible to 
                participate in the food stamp program because of 
                subparagraph (A), no other member of the family unit to 
                which that adult belongs shall be eligible to 
                participate.
                    ``(C) Duration of ineligibility.--An able-bodied, 
                work-eligible adult who becomes ineligible under 
                subparagraph (A), and members of the family unit who 
                become ineligible under subparagraph (B), shall remain 
                ineligible for 3 months after the date on which 
                ineligibility began.
                    ``(D) Restoration of eligibility.--At the end of 
                the 3-month period of ineligibility under subparagraph 
                (c), members of a work-eligible family unit may have 
                their eligibility to participate in the food stamp 
                program restored, if--
                            ``(i) the family unit is no longer a work-
                        eligible family unit; or
                            ``(ii) the adult members of the family unit 
                        begin and maintain any combination of paid 
                        employment and work activation sufficient to 
                        meet the appropriate standards for resumption 
                        of benefits in section 29(c)(2).
            ``(2) Strike against a government.--For the purpose of 
        subparagraph (A)(iv), an employee of the Federal Government, a 
        State, or a political subdivision of a State, who is dismissed 
        for participating in a strike against the Federal Government, 
        the State, or the political subdivision of the State shall be 
        considered to have voluntarily quit without good cause.
            ``(3) Striking workers ineligible.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C) and notwithstanding any other 
                provision of law, no member of a family shall be 
                eligible to participate in the food stamp program at 
                any time that any able-bodied, work-eligible adult 
                member of the household is on strike as defined in 
                section 501 of the Labor Management Relations Act, 1947 
                (29 U.S.C. 142), because of a labor dispute (other than 
                a lockout) as defined in section 2 of the National 
                Labor Relations Act (29 U.S.C. 152).
                    ``(B) Prior eligibility.--
                            ``(i) In general.--Subject to clauses (ii), 
                        a family unit shall not lose eligibility to 
                        participate in the food stamp program as a 
                        result of 1 of the members of the family unit 
                        going on strike if the household was eligible 
                        immediately prior to the strike.
                            ``(ii) No increased allotment.--A family 
                        unit described in clause (i) shall not receive 
                        an increased allotment as the result of a 
                        decrease in the income of the 1 or more 
                        striking members of the household.
                    ``(C) Refusal to accept employment.--Ineligibility 
                described in subparagraph (A) shall not apply to any 
                family unit that does not contain a member on strike, 
                if any of the members of the family unit refuses to 
                accept employment at a plant or site because of a 
                strike or lockout.''.
    (d) Eligibility of Students With Dependent Children.--Section 6(e) 
of the Food Stamp Act of 1977 (7 U.S.C. 2015(e)) is amended by striking 
paragraph (8) and inserting the following:
            ``(8) is enrolled full-time in an institution of higher 
        education, as determined by the institution, and--
                    ``(A) is a single parent with responsibility for 
                the care of a dependent child under 12 years of age; or
                    ``(B) is a family head or married spouse of a 
                family head in a married couple family with dependent 
                children and has a dependent child under age 12 
                residing in the home.''.
    (e) Work Requirement.--Section 6 of the Food Stamp Act of 1977 (7 
U.S.C. 2015) is amended by striking subsection (o) and inserting the 
following:
    ``(o) Fulfillment of Employment and Work Activation Requirements.--
            ``(1) In general.--If 1 or more adults within a work-
        eligible family unit are required by the State agency to 
        participate in work activation under section 29, no member of 
        the family unit shall be eligible for food stamp benefits 
        unless the family unit complies with the employment and work 
        activation standards.
            ``(2) Sanctions and resumption of benefits.--If 1 or more 
        adults within a work-eligible family unit who are required by 
        the State agency to participate in work activation under 
        section 29 during a given month fail to comply with the work 
        activation standards, benefits for all members of the family 
        unit--
                    ``(A) shall be terminated in accordance with 
                section 29(c)(1); and
                    ``(B) may be resumed upon compliance with section 
                29(c)(2).''.
    (f) Exclusion.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) is amended by adding at the end the following:
    ``(r) Minor Children.--No child less than age 18 years of age may 
participate in the food stamp program unless the child is a member of a 
family with dependent children and resides with an adult who is--
            ``(1) the family head of the same family of which the child 
        is also a member;
            ``(2) eligible to participate, and participating, in the 
        food stamp program as a member of the same household as the 
        child; and
            ``(3) lawfully residing, and eligible to work, in the 
        United States.''.
    (g) Hearing and Determination.--Section 11(e)(10) of the Food Stamp 
Act of 1977 (7 U.S.C. 2020(e)(10)) is amended by striking ``: 
Provided'' and all that follows through ``hearing;'' at the end and 
inserting a semicolon.
    (h) Work Requirements and Activation Program.--The Food Stamp Act 
of 1977 (7 U.S.C. 2011 et seq.) is amended by adding at the end the 
following:

``SEC. 29. WORK REQUIREMENTS AND ACTIVATION PROGRAM.

    ``(a) Employment and Work Activation Standards.--
            ``(1) In general.--A family unit with adult members that is 
        required to participate in work activation under subsection (b) 
        during a full month of participation in the food stamp program 
        shall fulfill the following levels of work activity during that 
        month:
                    ``(A) Each able-bodied, work-eligible adult without 
                dependent children shall be required to perform work 
                activities for at least 60 hours per month.
                    ``(B) Each family head of a work-eligible single-
                headed family with dependent children shall be required 
                to perform work activities for at least 120 hours per 
                month.
                    ``(C) Subject to paragraph (2), in each work-
                eligible married couple family with dependent children, 
                the family head and married spouse shall be required to 
                perform work activities that when added together for 
                the 2 adults equal at least 120 hours per month.
            ``(2) Requirements.--
                    ``(A) Single joint obligation.--The 120-hour 
                requirement under paragraph (1)(C) shall be a single 
                joint obligation for the married couple as a whole in 
                which the activities of both married partners shall be 
                combined together and counted jointly.
                    ``(B) Relationship to paid employment and work 
                activation.--For purposes of meeting the 120-hour 
                requirement, the paid employment and work activation of 
                the family head shall be added to the paid employment 
                and work activation of the married spouse, and the 
                requirement shall be fulfilled if the sum of the work 
                activities of the 2 individuals equals or exceeds 120 
                hours per month.
                    ``(C) Options.--The work requirement for a work-
                eligible married couple family with dependent children 
                may be fulfilled--
                            ``(i) by 120 or more hours of work activity 
                        by the family head;
                            ``(ii) by 120 or more hours of work 
                        activities by the married spouse; or
                            ``(iii) if the combined work activities of 
                        the family head and married spouse which when 
                        added together equal or exceed 120 hours.
                    ``(D) No separate work activation requirement.--
                Neither the family head nor the married spouse in a 
                married couple with dependent children shall be subject 
                to a separate work activation requirement as 
                individuals.
    ``(b) Pro Rata Reduction in Employment and Work Activation Standard 
During a Partial Month.--
            ``(1) In general.--A work-eligible family unit shall be 
        subject to a pro-rated work activity standard, if the family 
        unit--
                    ``(A) receives a pro-rated monthly allotment during 
                the initial month of enrollment under section 8(c); and
                    ``(B) is required by the State to participate in 
                the work activation program during that month.
            ``(2) Pro-rated work activity standard.--For purposes of 
        paragraph (1), the term `pro-rated work activity standard' 
        means a standard that equals a number of hours of work activity 
        of a family unit that bears the same proportion to the 
        employment and work activation requirement for the family unit 
        for a full month under subsection (a) as the proportion that--
                    ``(A) the pro-rated monthly allotment received by 
                the household for the partial month under section 8(c); 
                bears to
                    ``(B) the full allotment the same household would 
                receive for a complete month.
            ``(3) Requirement.--For purposes of fulfilling the pro-
        rated work activity requirement during an initial month of 
        enrollment in the food stamp program, only those hours of adult 
        work activity that occurred during the portion of the month in 
        which the family unit was participating in the food stamp 
        program shall be counted.
    ``(c) Sanction for Noncompliance.--
            ``(1) Standard.--
                    ``(A) In general.--If 1 or more members of a work-
                eligible family unit are required to participate in the 
                work activation program under subsection (e) in a 
                calendar month and the 1 or more individuals fail to 
                fulfill the work activity standard under subsection (a) 
                or (b) for that month--
                            ``(i) no member of the family unit shall be 
                        eligible to receive food stamp benefits during 
                        the subsequent calendar month; and
                            ``(ii) except as provided in subparagraph 
                        (B), the State agency shall not provide the 
                        food stamp benefit payment for all members of 
                        the family unit that otherwise would have been 
                        issued at the beginning of the next month.
                    ``(B) Administrative delay of sanction.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), if it is 
                        administratively infeasible for the State to 
                        not provide the food stamp benefit that would 
                        be issued at the beginning of the first month 
                        after the month of noncompliance, the State 
                        shall not provide the payment to all members of 
                        the family unit that otherwise would have been 
                        made at the beginning of the second month after 
                        the month of noncompliance.
                            ``(ii) Deadline.--The sanction of benefits 
                        shall occur not later than 32 days after the 
                        end of the month of noncompliance.
                            ``(iii) Relationship of payments to members 
                        of the family unit.--At least 1 monthly payment 
                        to all members of the family unit shall be not 
                        provided for each month of noncompliance under 
                        subparagraph (A).
            ``(2) Resumption of benefits after sanction.--
                    ``(A) In general.--If a family unit has had the 
                monthly benefit of the family unit not provided due to 
                noncompliance with a work activity requirement under 
                subsection (b), the family unit shall not be eligible 
                to receive future benefits under the food stamp 
                program, until--
                            ``(i) the 1 or more work-eligible members 
                        of the family unit have participated in the 
                        work activation program under subsection (e) 
                        for at least 4 consecutive subsequent weeks and 
                        fulfilled the work activity standard for the 
                        family unit for that same 4-week period; or
                            ``(ii) the family unit no longer contains 
                        any able-bodied, work-eligible adults.
                    ``(B) Limitation.--The resumed benefits cannot 
                restore or compensate for the benefits that were not 
                provided due to the sanction imposed under paragraph 
                (1).
    ``(d) Work Activation Is Not Employment.--Participation in work 
activation activities under this section shall--
            ``(1) not be considered to be employment; and
            ``(2) not be subject to any law pertaining to wages, 
        compensation, hours, or conditions of employment under any law 
        administered by the Secretary of Labor.
    ``(e) Work Activation Program.--
            ``(1) Program.--Each State participating in the food stamp 
        program shall carry out a work activation program.
            ``(2) Purpose.--
                    ``(A) In general.--The goal of each work activation 
                program shall be to increase the employment of able-
                bodied, work-eligible adult food stamp recipients.
                    ``(B) Requirement.--To accomplish the goal, each 
                State shall require able-bodied adult food stamp 
                recipients who are unemployed or under-employed to 
                engage in work activation.
            ``(3) Target work activation ratios.--
                    ``(A) In general.--Beginning on the date that is 
                180 days after the date of enactment of this section, a 
                State shall engage able-bodied food stamp recipients in 
                work activation each month in sufficient numbers to 
                meet the following monthly target work activation 
                ratios:
                            ``(i) In 2012, the monthly target work 
                        activation ratio shall be 4 percent.
                            ``(ii) In 2013 and each subsequent year, 
                        the monthly target work activation ratio shall 
                        be 7 percent.
                    ``(B) Limitation on education and training as a 
                component of work activation.--For purposes of 
                compliance by the State with the work activation 
                ratios, not more than 20 percent of the monthly work 
                activation participants counted by the State may be 
                engaged in employment and training as a means of 
                fulfilling the employment and work activation standards 
                of the participants.
            ``(4) Work activation priority populations.--
                    ``(A) In general.--In carrying out the work 
                activation programs, a State shall give priority to 
                participation by the following recipient groups:
                            ``(i) Work-eligible adults without 
                        dependent children.
                            ``(ii) Work-eligible adults who are also 
                        recipients of housing assistance.
                            ``(iii) Other work-eligible recipients at 
                        the time of initial application for food stamp 
                        benefits.
                    ``(B) Participation share.--Except as provided in 
                subparagraph (C), at least 80 percent of the 
                participants in a work activation program shall belong 
                to at least 1 of the 3 priority groups listed in 
                subparagraph (A).
                    ``(C) Exception.--
                            ``(i) In general.--The percentage 
                        requirement in subparagraph (B) shall not apply 
                        if the number of recipients in the 3 priority 
                        groups in the State is insufficient to meet 
                        that requirement.
                            ``(ii) Priority.--In circumstances 
                        described in clause (i), the State shall 
                        continue to give priority to any recipients who 
                        belong to 1 of the 3 priority groups.
            ``(5) Reimbursable expenses of participants.--
                    ``(A) In general.--A State agency shall provide 
                payments or reimbursements to participants in work 
                activation carried out under this section for--
                            ``(i) the actual costs of transportation 
                        and other actual costs (other than dependent 
                        care costs) that are reasonably necessary and 
                        directly related to participation in the work 
                        activation components of the program; and
                            ``(ii) the actual costs of such dependent 
                        care expenses as are determined by the State 
                        agency to be necessary for the participation of 
                        an individual in the work activation components 
                        of the program (other than an individual who is 
                        the caretaker relative of a dependent in a 
                        family receiving benefits under part A of title 
                        IV of the Social Security Act (42 U.S.C. 601 et 
                        seq.)) in a local area in which an employment, 
                        training, or education program under title IV 
                        of that Act (42 U.S.C. 601 et seq.) is in 
                        operation, on the condition that no such 
                        payment or reimbursement shall exceed the 
                        applicable local market rate.
                    ``(B) Vouchers.--
                            ``(i) In general.--In lieu of providing 
                        reimbursements for dependent care expenses 
                        under subparagraph (A)(ii), a State agency may, 
                        at the option of the State agency, arrange for 
                        dependent care through providers by providing 
                        vouchers to the household to allow the 
                        recipient to choose between all lawful 
                        providers.
                            ``(ii) Value of vouchers.--The value of a 
                        voucher shall not exceed the average local 
                        market rate.
                    ``(C) Value of services.--The value of any 
                dependent care services provided for or arranged under 
                subparagraph (A) or (B), or any amount received as a 
                payment or reimbursement under subparagraph (A), 
                shall--
                            ``(i) not be treated as income for the 
                        purposes of any other Federal or federally 
                        assisted program that bases eligibility for, or 
                        the amount of benefits on, need; and
                            ``(ii) not be claimed as an employment-
                        related expense for the purposes of the credit 
                        provided under section 21 of the Internal 
                        Revenue Code of 1986.
            ``(6) Penalties for inadequate state performance.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Non-performance month.--The term 
                        `non-performance month' means a month in which 
                        a State fails to engage food stamp recipients 
                        in work activation in sufficient numbers to 
                        meet or exceed the appropriate target work 
                        activation ratio under paragraph (3).
                            ``(ii) Penalty month.--The term `penalty 
                        month' means a month in which a State is 
                        penalized for the failure.
                    ``(B) Penalty.--If, in a month, a State fails to 
                engage food stamp recipients in work activation in 
                sufficient numbers to meet or exceed the appropriate 
                work activation ratio under paragraph (3), the Federal 
                food stamp funding provided to the State in a 
                subsequent penalty month shall be reduced in accordance 
                with this paragraph.
                    ``(C) Timing.--The penalty month shall be not later 
                than 4 months after the non-performance month.
                    ``(D) Reduction.--The amount of Federal food stamp 
                funding a State shall receive for the penalty month 
                shall equal the product obtained by multiplying--
                            ``(i) the amount of Federal food stamp 
                        funds the State would otherwise have received; 
                        and
                            ``(ii) the quotient obtained by dividing--
                                    ``(I) the actual monthly work 
                                activation ratio achieved by the State 
                                in the penalty month; by
                                    ``(II) the target monthly work 
                                activation ratio for the penalty month.
            ``(7) Rewards to states for reducing government 
        dependence.--
                    ``(A) In general.--If, in any future year, a State 
                reduces the food stamp caseload of the State below the 
                levels that existed in calendar year 2006, the State 
                shall receive a financial reward for reducing 
                dependence.
                    ``(B) Amount.--The reward shall equal \1/4\ of the 
                savings to the Federal Government for that year that 
                resulted from the caseload reduction.
                    ``(C) Use of reward.--A State may use reward 
                funding under this paragraph for any purpose chosen by 
                the State that--
                            ``(i) provides benefits or services to 
                        individuals with incomes below 200 percent of 
                        the Federal poverty level;
                            ``(ii) improves social outcomes in low-
                        income populations;
                            ``(iii) encourages healthy marriage; or
                            ``(iv) increases self-sufficiency and 
                        reduces dependence.
            ``(8) Authorization of funding.--
                    ``(A) In general.--There is authorized to be 
                appropriated to the Secretary to provide funds to State 
                governments for the purpose of carrying out work 
                activation programs in accordance with this section 
                $2,500,000,000 for fiscal year 2012 and each subsequent 
                fiscal year.
                    ``(B) Allocation among states.--The total amount 
                appropriated under subparagraph (A) for a fiscal year 
                shall be allocated among the States in accordance with 
                the proportion of each State's share of total funding 
                for the food stamp program under this Act in fiscal 
                year 2007.''.
    (i) Conforming Amendments.--
            (1) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
        is amended--
                    (A) in subsection (a), in the second sentence, by 
                striking ``, 6(d)(2),'';
                    (B) in subsection (d)(14), by striking ``section 
                6(d)(4)(I)'' and inserting ``section 29'';
                    (C) in subsection (e)(3)(B)(ii), by striking 
                ``subsection (d)(3)'' and inserting ``section 29''; and
                    (D) in the first sentence of subsection (g)(3), by 
                striking ``section 6(d)'' and inserting ``section 29''.
            (2) Section 7(i)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
        2016(i)(1)) is amended by striking ``section 6(o)(2)'' and 
        inserting ``section 6(o)''.
            (3) Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 
        2020(e)) is amended--
                    (A) by striking paragraph (19); and
                    (B) by redesignating paragraphs (20) through (23) 
                as paragraphs (19) through (22), respectively.
            (4) Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 
        2025) is amended--
                    (A) in subsection (b)(4), by striking ``section 
                6(d)'' and inserting ``section 29''; and
                    (B) by striking subsection (h).
            (5) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 
        2026) is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(B)(iv)(III)--
                                    (I) by striking item (bb); and
                                    (II) by redesignating items (cc) 
                                through (jj) as items (bb) through 
                                (ii), respectively;
                            (ii) in paragraph (2), by striking the 
                        second sentence; and
                            (iii) in paragraph (3)(B), in the first 
                        sentence, by striking ``section 6(d)'' and 
                        inserting ``section 29,''; and
                    (B) by striking subsection (g).
            (6) Section 20 of the Food Stamp Act of 1977 (7 U.S.C. 
        2029) is amended--
                    (A) in subsection (b)--
                            (i) by striking paragraph (1); and
                            (ii) by redesignating paragraphs (2) 
                        through (6) as paragraphs (1) through (5), 
                        respectively;
                    (B) by striking subsection (f); and
                    (C) by redesignating subsection (g) as subsection 
                (f).
            (7) Section 22(b) of the Food Stamp Act of 1977 (7 U.S.C. 
        2031(b)) is amended by striking paragraph (4).
            (8) Section 26(f)(3)(E) of the Food Stamp Act of 1977 (7 
        U.S.C. 2036(f)(3)(E)) is amended by striking ``(22), and (23)'' 
        and inserting ``(21), and (22)''.
            (9) Section 501(b)(2)(E) of the Workforce Investment Act of 
        1998 (20 U.S.C. 9271(b)(2)(E)) is amended by striking ``section 
        6(d)'' and all that follows through the end and inserting 
        ``section 29 of the Food Stamp Act of 1977.''.
            (10) Section 112(b)(8)(A)(iii) of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2822(b)(8)(A)(iii)) is amended by 
        striking ``section 6(d)(4)'' and all that follows through ``(7 
        U.S.C. 2015(d)(4))'' and inserting ``section 29 of the Food 
        Stamp Act of 1977''.
            (11) Section 121(b)(2)(B)(ii) of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2841(b)(2)(B)(ii)) is amended by 
        striking ``section 6(d)(4)'' and all that follows through the 
        end and inserting ``section 29 of the Food Stamp Act of 
        1977;''.

SEC. 203. DEFINITION OF FOOD.

    Section 3(k) of the Food Stamp Act of 1977 (7 U.S.C. 2012(k)) is 
amended by inserting before the period at the end the following: ``, 
except that a food, food product, meal, or other item described in this 
subsection shall be considered a food under this Act only if it is a 
bare essential (as determined by the Secretary)''.

SEC. 204. TERMINATION OF BENEFIT INCREASE.

    Section 101(a)(2) of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 120; 124 Stat. 
2394; 124 Stat. 3265) is amended by striking ``after October 31, 2013'' 
and inserting ``on the date of enactment of the Welfare Reform Act of 
2011''.

 TITLE III--REPORTING OF MEANS-TESTED WELFARE SPENDING IN PRESIDENT'S 
                           BUDGET SUBMISSION

SEC. 301. ADDITIONAL INFORMATION IN PRESIDENT'S BUDGET SUBMISSION.

    Section 1105(a) of title 31, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(37) the total level of spending on means-tested welfare 
        programs by the Federal Government and the total level of 
        spending on means-tested welfare programs by all State and 
        local governments and the Federal Government for the most 
        recent fiscal year for which such data is available and 
        estimated levels for the fiscal year during which the budget 
        submission of the President is made, for the fiscal year 
        beginning on October 1 of the calendar year during which the 
        budget submission is made, and for each of the nine ensuing 
        fiscal years, and for purposes of this paragraph, means-tested 
        welfare programs shall mean those programs defined in section 
        401 of the Welfare Reform Act of 2011.''.

       TITLE IV--AGGREGATE CAP FOR MEANS-TESTED WELFARE SPENDING

SEC. 401. DEFINITION OF MEANS-TESTED WELFARE SPENDING.

    Section 3 of the Congressional Budget and Impoundment Control Act 
of 1974 is amended by adding at the end the following new paragraph:
            ``(11)(A) The term `means-tested welfare spending' refers 
        to any Federal program that is designed to specifically provide 
        assistance or benefits exclusively to low-income Americans, but 
        is not such a program if it--
                    ``(i) is based on earned eligibility;
                    ``(ii) is not need-based;
                    ``(iii) is a program designed exclusively or 
                primarily for veterans of military service; or
                    ``(iv) offers universal or near universal 
                eligibility to the working population and their 
                dependents.
        Community and economic development programs targeted to low-
        income communities or populations shall be considered means-
        tested welfare programs for purposes of this paragraph.
            ``(B) For purposes of subparagraph (A), the following 
        Federal programs shall be considered to be means-tested welfare 
        spending:
                    ``(i) Cash and general programs.--
                            ``(I) Supplemental Security Income.
                            ``(II) Earned Income Tax Credit (Refundable 
                        Portion).
                            ``(III) Refundable Child Credit.
                            ``(IV) Temporary Assistance to Needy 
                        Families.
                            ``(V) Title IV-E Foster Care.
                            ``(VI) Title IV-E Adoption Assistance.
                            ``(VII) General Assistance to Indians.
                            ``(VIII) Assets for Independence.
                    ``(ii) Medical.--
                            ``(I) Medicaid.
                            ``(II) State Children's Health Insurance 
                        Program.
                            ``(III) Indian Health Services.
                            ``(IV) Consolidated Health Centers/
                        Community Health Centers.
                            ``(V) Maternal and Child Health.
                            ``(VI) Healthy Start.
                            ``(VII) Refundable Premiums and Out of 
                        Pocket Subsidies under the Patient Protection 
                        and Affordable Health Care Act (PPACA).
                    ``(iii) Food.--
                            ``(I) Food Stamps Program.
                            ``(II) School Lunch Program.
                            ``(III) Women, Infant and Children (WIC) 
                        Food Program.
                            ``(IV) School Breakfast.
                            ``(V) Child Care Food Program.
                            ``(VI) Nutrition Program for the Elderly, 
                        Nutrition Service Incentives.
                            ``(VII) Summer Food Service Program.
                            ``(VIII) Commodity Supplemental Food 
                        Program.
                            ``(IX) Temporary Emergency Food Program.
                            ``(X) Needy Families.
                            ``(XI) Farmer's Market Nutrition Program.
                            ``(XII) Special Milk Program.
                    ``(iv) Housing.--
                            ``(I) Section 8 Housing (HUD).
                            ``(II) Public Housing (HUD).
                            ``(III) State Housing Expenditures.
                            ``(IV) Home Investment Partnership Program 
                        (HUD).
                            ``(V) Homeless Assistance Grants (HUD).
                            ``(VI) Rural Housing Insurance Fund 
                        (Agriculture).
                            ``(VII) Rural Housing Service 
                        (Agriculture).
                            ``(VIII) Housing for the Elderly (HUD).
                            ``(IX) Native American Housing Block Grants 
                        (HUD).
                            ``(X) Other Assisted Housing Programs 
                        (HUD).
                            ``(XI) Housing for Persons with 
                        Disabilities (HUD).
                    ``(v) Energy and utilities.--
                            ``(I) Low-Income Home Energy Assistance.
                            ``(II) Universal Service Fund--Subsidized 
                        Phone Service for Low-Income Persons.
                            ``(III) Weatherization.
                    ``(vi) Education.--
                            ``(I) Pell Grants.
                            ``(II) Title I Grants to Local Education 
                        Authorities.
                            ``(III) Special Programs for Disadvantaged 
                        (TRIO).
                            ``(IV) Supplemental Education Opportunity 
                        Grants.
                            ``(V) Migrant Education.
                            ``(VI) Gear-Up.
                            ``(VII) Education for Homeless Children and 
                        Youth.
                            ``(VIII) Leveraging Educational Assistance 
                        Partnership (LEAP) Program.
                            ``(IX) Even Start.
                    ``(vii) Training.--
                            ``(I) Job Corps.
                            ``(II) Youth Opportunity Grants (under the 
                        Workforce Investment Act).
                            ``(III) Adult Employment and Training 
                        (under the Workforce Investment Act).
                            ``(IV) Senior Community Service Employment.
                            ``(V) Food Stamp Employment and Training 
                        Program.
                            ``(VI) Migrant Training.
                            ``(VII) YouthBuild.
                            ``(VIII) Native American Training.
                    ``(viii) Services.--
                            ``(I) Title XX Social Services Block Grant.
                            ``(II) Community Service Block Grant.
                            ``(III) Social Services for Refugees, 
                        Asylees, and Humanitarian Cases.
                            ``(IV) Title III Aging Americans Act.
                            ``(V) Legal Services Block Grant.
                            ``(VI) Family Planning.
                            ``(VII) Emergency Food and Shelter.
                            ``(VIII) Healthy Marriage and Responsible 
                        Fatherhood Grants.
                            ``(IX) Americorps VISTA.
                    ``(ix) Child care and child development.--
                            ``(I) Headstart.
                            ``(II) Childcare and Child Development 
                        Block Grant.
                            ``(III) Child Care Block Grant (under 
                        Temporary Assistance to Needy Families 
                        Program).
                    ``(x) Community development.--
                            ``(I) Community Development Block Grant.
                            ``(II) Economic Development Administration.
                            ``(III) Appalachian Regional Development.
                            ``(IV) Empowerment Zones, Enterprise 
                        Communities, Renewal Communities.
                            ``(V) Urban Development Block Grant.
            ``(C) For purposes of this paragraph, the term `means-
        tested welfare spending' shall not include--
                    ``(i) the Social Security Disability Insurance 
                program;
                    ``(ii) Medicare;
                    ``(iii) retirement insurance benefits and survivor 
                benefits under the Social Security program;
                    ``(iv) any program designed exclusively or 
                primarily for veterans of military service;
                    ``(v) unemployment insurance benefits provided 
                under title K; and
                    ``(vi) programs designed specifically to provide 
                benefits to workers to compensate for job-related 
                injuries or illnesses.
            ``(D) For purposes of this paragraph, the term `spending on 
        means-tested welfare programs' shall mean the full cost of 
        benefits and services provided by the program, as well as the 
        administrative costs for operating the program, subject to the 
        limitations in subparagraph (E).
            ``(E)(i) For purposes of this paragraph only the refundable 
        portion of the following tax credits shall be counted as means-
        tested welfare expenditures:
                    ``(I) The earned income tax credit.
                    ``(II) The child tax credit.
                    ``(III) The making work pay tax credit.
            ``(ii) For purposes of this paragraph only the refundable 
        portion of the premium and out of pocket health care subsidies 
        to be paid under the Patient Protection and Affordable Health 
        Care Act shall be counted as means-tested welfare expenditures; 
        the refundable portion of these subsidies shall mean the 
        portion of the credit which is paid to an individual in excess 
        of the amount of Federal income tax owed by the individual.
            ``(iii) For purposes of this paragraph only the costs of 
        the free and reduced price segments of the school lunch and 
        school breakfast programs shall be included.
            ``(F) For purposes of this paragraph expenditures by State 
        and local governments of funds that are:
                    ``(i) obtained by the State and local government 
                from taxes, fees, or other sources of revenue 
                established by the State or local government; and
                    ``(ii) are not received as any form of grant from 
                the Federal Government,
        shall not be considered as Federal means-tested welfare 
        spending even if such state and local expenditures take the 
        form of contributions to Federal programs listed or defined in 
        subparagraphs (A) and (B).
            ``(12) The limits established by this paragraph shall not 
        be in effect in a fiscal year if the average monthly 
        unemployment rate in the preceding fiscal year exceeded 7.5 
        percent.''.

SEC. 402. REPORTS TO BUDGET COMMITTEES.

    Section 202(e)(1) of the Congressional Budget Act of 1974 is 
amended by inserting ``(A)'' after ``(1)'' and by inserting at the end 
the following new subparagraph:
            ``(B) The Director shall include in each report submitted 
        to the Committees on the Budget of the House of Representatives 
        and the Senate under subparagraph (A) the information described 
        in clause (ii) beginning on the earlier of--
                    ``(i) the first fiscal year that begins after the 
                date of enactment of this subparagraph and after any 
                monthly rate of unemployment during the immediately 
                preceding fiscal year is below 7.5 percent; or
                    ``(ii) fiscal year 2015.
            ``(C) The Director shall include the following information 
        for the fiscal year commencing on October 1 of the year in 
        which the report is submitted and for each of the ensuing 4 
        fiscal years:
                    ``(i) The Congressional Budget Office baseline 
                level of Federal spending for aggregate means-tested 
                welfare programs.
                    ``(ii) The aggregate level of Federal means-tested 
                welfare spending computed by taking the aggregate level 
                of means-tested welfare spending for fiscal year 2007 
                and adjusting that for inflation according to the 
                procedures specified in clause (iii).
            ``(D) In preparing the report required by this 
        subparagraph--
                    ``(i) spending on means-tested medical assistance 
                programs shall be adjusted for inflation according to 
                the price index for personal consumption expenditures 
                for health products and services as calculated by the 
                Bureau of Economic Analysis; and
                    ``(ii) spending for all other means-tested programs 
                shall be adjusted for inflation according to the 
                weighted price index for personal consumption 
                expenditures excluding health products and services as 
                calculated by the Bureau of Economic Analysis.''.

SEC. 403. CONTENT OF CONCURRENT RESOLUTIONS ON THE BUDGET.

    Section 301 of the Congressional Budget Act of 1974 is amended by 
adding at the end the following new subsection:
    ``(j) Means-Tested Welfare Spending.--
            ``(1) In general.--The concurrent resolution on the budget 
        for the applicable fiscal year shall set forth the appropriate 
        level for aggregate means-tested welfare spending for the first 
        fiscal year of that concurrent resolution and for at least each 
        of the 4 ensuing fiscal years beginning on the earlier of--
                    ``(A) the first fiscal year that begins after the 
                date of enactment of this subsection and after any 
                monthly rate of unemployment during the immediately 
                preceding fiscal year is below 7.5 percent; or
                    ``(B) fiscal year 2015.
            ``(2) Setting level.--The level described in paragraph (2) 
        shall not exceed the aggregate level of Federal means-tested 
        welfare spending for fiscal year 2007, adjusted for inflation 
        as follows:
                    ``(A) Spending on means-tested medical assistance 
                programs shall be adjusted for inflation according to 
                the price index for personal consumption expenditures 
                for health products and services as calculated by the 
                Bureau of Economic Analysis.
                    ``(B) Spending for all other means-tested programs 
                shall be adjusted for inflation according to the 
                weighted price index for personal consumption 
                expenditures excluding health products and services as 
                calculated by the Bureau of Economic Analysis.''.

SEC. 404. ALLOCATIONS OF MEANS-TESTED WELFARE SPENDING.

    (a) In General.--Section 302 of the Congressional Budget Act of 
1974 is amended by adding at the end the following new subsection:
    ``(h) Means-Tested Welfare Spending Limit.--
            ``(1) Further division of amounts.--For any concurrent 
        resolution on the budget for which levels for aggregate means-
        tested welfare spending are set forth under section 301(j), in 
        the House of Representatives and the Senate, the amounts 
        allocated under subsection (a) shall be further divided to 
        establish an allocation of--
                    ``(A) total new budget authority and total outlays 
                for discretionary means-tested welfare spending in 
                appropriation measures for the first fiscal year of the 
                resolution on the budget; and
                    ``(B) total new budget authority and total outlays 
                for mandatory means-tested welfare spending for the 
                first fiscal year of the resolution on the budget and 
                at least each of the ensuing 4 fiscal years to all 
                other committees of the House of Representatives and 
                the Senate that have jurisdiction over legislation 
                providing mandatory means-tested welfare spending.
            ``(2) Point of order.--It shall not be in order in the 
        House of Representatives or the Senate to consider any bill, 
        joint resolution, or amendment if--
                    ``(A) the enactment of such bill or resolution as 
                reported;
                    ``(B) the adoption and enactment of such amendment; 
                or
                    ``(C) the enactment of such bill or resolution in 
                the form recommended in such conference report,
        would cause the applicable allocation of new budget authority 
        or outlays made under subparagraph (A) or (B) of paragraph (1) 
        for a fiscal year to be exceeded.''.
    (b) Conforming Amendment.--Section 302(b) of the Congressional 
Budget Act of 1974 is amended by striking ``under subsection (a)'' and 
inserting ``under subsections (a) and (h)''.

SEC. 405. RECONCILIATION.

    Section 310(a) of the Congressional Budget Act of 1974 is amended 
as follows:
            (1) Strike ``or'' at the end of paragraph (3) and strike 
        the period at the end of paragraph (4) and insert ``; and''.
            (2) Redesignate paragraph (4) as paragraph (5), and in 
        paragraph (5) as redesignated, strike ``and (3)'' and insert 
        ``(3), and (4)''.
            (3) After paragraph (3), insert the following new 
        paragraph:
            ``(4) specify the total amount by which new budget 
        authority for such fiscal year for mandatory means-tested 
        welfare spending contained in laws, bills, and resolutions 
        within the jurisdiction of a committee is to be changed and 
        direct that committee to determine and recommend changes to 
        accomplish a change of such total amount, which amount shall be 
        the amount by which the Congressional Budget Office baseline 
        level of spending for aggregate mandatory means-tested welfare 
        programs exceeds the allocation made pursuant to section 
        302(h)(1)(B) for such fiscal year.''.

              TITLE V--GRANTS TO PROMOTE SELF-SUFFICIENCY

SEC. 501. GRANTS TO STATES.

    (a) Purpose.--The purpose of this title is to encourage States to 
develop policies to promote self-sufficiency and prosperity and to 
reduce poverty and Government dependence.
    (b) Grants.--The Social Security Act is amended by adding at the 
end the following:

    ``TITLE XXII--GRANTS TO STATES TO PROMOTE SELF-SUFFICIENCY AND 
                  PROSPERITY AND TO REDUCE DEPENDENCE

``SEC. 2201. GRANTS TO STATES.

    ``(a) In General.--The Secretary may provide grants to States to 
reward reductions in poverty and Government dependence and increases in 
self-sufficiency.
    ``(b) Allocation of Grants to States.--For each fiscal year for 
which funds are made available under subsection (e), the Secretary 
shall make a grant in an amount equal to $100,000,000 to each of the 3 
States with the greatest percentage increases in the self-sufficiency 
ratio of the State for the preceding fiscal year over the self-
sufficiency ratio of the State for fiscal year 2007, as compared with 
the changes in that ratio for each other State, subject to subsection 
(c).
    ``(c) Limitation on Eligibility for Grants.--A State shall not be 
eligible for a grant under this title for a fiscal year unless the 
self-sufficiency ratio of the State for the fiscal year is greater than 
the self-sufficiency ratio of the State for fiscal year 2007.
    ``(d) Definitions.--In this title:
            ``(1) The term `self-sufficient family' means a family 
        (including a 1-person family) whose combined income, excluding 
        receipt of means-tested welfare spending (as defined in section 
        3(11)(A) of the Congressional Budget and Impoundment Control 
        Act of 1974), exceeds the poverty line (within the meaning of 
        section 673(2) of the Omnibus Budget Reconciliation Act of 
        1981, including any revision required by such section 
        applicable to a family of the size involved).
            ``(2) The term `self-sufficiency ratio' means, with respect 
        to a State and a fiscal year--
                    ``(A) the number of self-sufficient families 
                residing in the State during the fiscal year that are 
                headed by able-bodied individuals who have not attained 
                63 years of age; divided by
                    ``(B) the total number of families residing in the 
                State during the fiscal year that are headed by able-
                bodied individuals who have not attained 63 years of 
                age.
            ``(3) The term `State' means the 50 States and the District 
        of Columbia.
    ``(e) Limitations on Authorization of Appropriations.--For grants 
under this title, there are authorized to be appropriated to the 
Secretary $300,000,000 for fiscal year 2012 and each succeeding fiscal 
year.''.

              TITLE VI--PROHIBITION ON FUNDING OF ABORTION

SEC. 601. PROHIBITION ON FUNDING FOR ABORTIONS.

    No funds authorized or appropriated by Federal law, and none of the 
funds in any trust fund to which funds are authorized or appropriated 
by Federal law, shall be expended for any abortion.

SEC. 602. PROHIBITION ON FUNDING FOR HEALTH BENEFITS PLANS THAT COVER 
              ABORTION.

    None of the funds authorized or appropriated by Federal law, and 
none of the funds in any trust fund to which funds are authorized or 
appropriated by Federal law, shall be expended for health benefits 
coverage that includes coverage of abortion.

SEC. 603. PROHIBITION ON TAX BENEFITS RELATING TO ABORTION.

    For taxable years beginning after the date of the enactment of this 
section, no credit shall be allowed under the internal revenue laws 
with respect to amounts paid or incurred for an abortion or with 
respect to amounts paid or incurred for a health benefits plan 
(including premium assistance) that includes coverage of abortion.

SEC. 604. CONSTRUCTION RELATING TO SEPARATE COVERAGE.

    Nothing in this title shall be construed as prohibiting any 
individual, entity, or State or locality from purchasing separate 
abortion coverage or health benefits coverage that includes abortion so 
long as such coverage is paid for entirely using only funds not 
authorized or appropriated by Federal law and such coverage shall not 
be purchased using matching funds required for a federally subsidized 
program, including a State's or locality's contribution of Medicaid 
matching funds.

SEC. 605. CONSTRUCTION RELATING TO THE USE OF NON-FEDERAL FUNDS FOR 
              HEALTH COVERAGE.

    Nothing in this title shall be construed as restricting the ability 
of any non-Federal health benefits coverage provider from offering 
abortion coverage, or the ability of a State or locality to contract 
separately with such a provider for such coverage, so long as only 
funds not authorized or appropriated by Federal law are used and such 
coverage shall not be purchased using matching funds required for a 
federally subsidized program, including a State's or locality's 
contribution of Medicaid matching funds.

SEC. 606. TREATMENT OF ABORTIONS RELATED TO RAPE, INCEST, OR PRESERVING 
              THE LIFE OF THE MOTHER.

    The limitations established in this title shall not apply to an 
abortion--
            (1) if the pregnancy is the result of an act of rape or 
        incest; or
            (2) in the case where a woman suffers from a physical 
        disorder, physical injury, or physical illness that would, as 
        certified by a physician, place the woman in danger of death 
        unless an abortion is performed, including a life-endangering 
        physical condition caused by or arising from the pregnancy 
        itself.
                                 <all>