[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3005 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 3005

  To amend title IV of the Social Security Act to ensure funding for 
  grants to promote responsible fatherhood and strengthen low-income 
                   families, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 9, 2015

Mr. Danny K. Davis of Illinois (for himself and Mr. Carson of Indiana) 
 introduced the following bill; which was referred to the Committee on 
    Ways and Means, and in addition to the Committees on Energy and 
Commerce and Agriculture, 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 amend title IV of the Social Security Act to ensure funding for 
  grants to promote responsible fatherhood and strengthen low-income 
                   families, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Julia Carson 
Responsible Fatherhood and Healthy Families Act of 2015''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--PROMOTING RESPONSIBLE FATHERHOOD AND STRENGTHENING LOW-INCOME 
                                FAMILIES

Sec. 101. State assessments of barriers to employment and financial 
                            support of children.
Sec. 102. Grants to States to conduct demonstration projects to promote 
                            economic opportunity for low-income 
                            parents.
Sec. 103. Healthy marriage promotion and responsible fatherhood 
                            programs.
Sec. 104. TANF work participation improvements.
Sec. 105. Ban on recovery of Medicaid costs for births.
Sec. 106. Improved collection and distribution of child support.
Sec. 107. Collection of child support under the supplemental nutrition 
                            assistance program.
Sec. 108. Grants supporting healthy family partnerships for domestic 
                            violence intervention and preventions.
Sec. 109. Procedures to address domestic violence.
Sec. 110. TANF Employment Fund.
Sec. 111. Sense of Congress.
                      TITLE II--REVENUE PROVISION

Sec. 201. Increase in credit percentage under earned income tax credit 
                            for eligible individuals with no qualifying 
                            children.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Fathers play a significant and underappreciated role in 
        the development of their children, with research demonstrating 
        that a supportive and involved father strengthens a child's 
        emotional, physical, intellectual, and behavioral development. 
        Children with positive relationships with fathers, even if they 
        do not live in the same household, have stronger mental health, 
        economic success, and academic achievement with lower rates of 
        youth delinquency, school dropout, and teen pregnancy.
            (2) Economic stability also leads to positive outcomes for 
        children, including stronger emotional well-being, physical 
        health, and academic success.
            (3) Family patterns in the United States have resulted in 
        fewer children living with their fathers. The March 2015 Child 
        Trends report on family structure shows the proportion of all 
        children who have not attained the age of 18 living with both 
        parents has decreased over the last 54 years, from 87.7 percent 
        in 1960 to 64.4 percent in 2014, with 24 percent of children 
        who have not attained the age of 18 living with their mother 
        only and 4 percent of children who have not attained the age of 
        18 living with their father only.
            (4) A 2011 United States Census analysis of children's 
        living arrangements and characteristics showed that a child in 
        a father-absent home is almost 4 times more likely to live in 
        poverty than a child in a married-couple family.
            (5) Father engagement does not depend on living in the same 
        house as the child, with many non-residential fathers being 
        actively involved with their children and supportive of their 
        children's mothers. However, low-income fathers experience 
        multiple challenges to contributing financially and emotionally 
        to their children due to limited education and job skills, 
        unstable employment opportunities, child support enforcement 
        policies, incarceration, and strained relationships with the 
        children's mothers. Multiple approaches are needed to address 
        these barriers to create opportunities for fathers to sustain 
        their engagement and closeness with their children and 
        families.
            (6) Federal programs should encourage responsible 
        fatherhood and healthy families by increasing the upward 
        economic mobility of custodial and noncustodial parents so that 
        they can actively participate in financial support and child-
        rearing as well as maintain positive, healthy, and nonviolent 
        relationships with their children and co-parents, including 
        improving compliance with child support obligations and 
        cooperative parenting.

TITLE I--PROMOTING RESPONSIBLE FATHERHOOD AND STRENGTHENING LOW-INCOME 
                                FAMILIES

SEC. 101. STATE ASSESSMENTS OF BARRIERS TO EMPLOYMENT AND FINANCIAL 
              SUPPORT OF CHILDREN.

    (a) State Assessments and Reports.--As a condition of the continued 
approval of a State plan under part D of title IV of the Social 
Security Act, each State with such an approved plan, acting through the 
appropriate State agencies, shall assess the State policies with 
respect to the issues described in subsection (b) and submit a report 
to the Secretary of Health and Human Services on the results of the 
assessment not later than October 1, 2016.
    (b) Issues Described.--The issues described in this subsection are 
the following:
            (1) The process of setting and modifying child support 
        obligations, particularly with respect to low-income parents, 
        including--
                    (A) the role and criteria for using imputed income 
                in determining child support obligations;
                    (B) the process of modifying obligations;
                    (C) the consideration of income and employment 
                status, including efforts to identify unreported 
                income;
                    (D) the consideration of incarceration;
                    (E) the consideration of disability;
                    (F) the treatment of arrearages, including interest 
                charged, and laws or procedures that interfere with 
                forgiveness, adjustment, waiver, or compromise of 
                arrears owed to the State by low-income noncustodial 
                parents who lack sufficient assets or physical ability 
                to pay such arrearages;
                    (G) the procedures related to retroactive support; 
                and
                    (H) State pass-through and disregard policies for 
                recipients of means-tested public benefits.
            (2) The effect of State criminal laws and law enforcement 
        practices on the employment acquisition, retention, and 
        advancement prospects of an individual following arrest, 
        conviction, or incarceration, including--
                    (A) any efforts, including counseling or employment 
                support, to assist ex-prisoners with reentry to a 
                community and successful reunification with their 
                families; and
                    (B) an assessment of any efforts to seal or expunge 
                arrest and conviction records and any efforts to grant 
                certificates or other acknowledgments of rehabilitation 
                to ex-prisoners, and to examine State occupational 
                licensing and certification procedures.
            (3) An assessment of the effect of debt on employment 
        retention, including child support and non-child support debts 
        imposed to recover costs related to welfare and criminal 
        justice.
            (4) An assessment of State practices related to providing 
        prisoners and ex-prisoners with valid identification documents 
        upon release from prison.
            (5) Identification of any other barriers to healthy family 
        formation or sustainable economic opportunity for custodial and 
        noncustodial parents that are created or exacerbated by Federal 
        or State laws, policies, or procedures, including an 
        examination of the rules of Federal and State means-tested 
        programs, the operation of the State workforce system, the 
        availability of financial education services, and the 
        availability of domestic violence services and child support 
        procedures to help victims of domestic violence stay safe and 
        obtain the child support they are owed.
    (c) Grants to States for Commissions on State Law Improvements in 
the Best Interest of Children and Families.--The Secretary of Health 
and Human Services shall award grants to States to establish or support 
commissions to review the State assessment conducted in accordance with 
subsection (a) and to make recommendations on ways to improve State law 
in the best interest of children and families.
    (d) Appropriations.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated to the 
Secretary of Health and Human Services for each of fiscal years 2016 
through 2020, $3,000,000, to remain available until expended, for the 
purpose of making--
            (1) payments to States to offset all or a portion of the 
        costs of conducting the State assessments and reports required 
        under subsection (a); and
            (2) grants to States under subsection (c).

SEC. 102. GRANTS TO STATES TO CONDUCT DEMONSTRATION PROJECTS TO PROMOTE 
              ECONOMIC OPPORTUNITY FOR LOW-INCOME PARENTS.

    (a) Court-Supervised or IV-D Agency-Supervised Employment Programs 
for Noncustodial Parents.--
            (1) In general.--To assist States in implementing section 
        466(a)(15) of the Social Security Act, the Secretary of Health 
        and Human Services shall award grants to States to conduct 
        demonstration projects to establish, in coordination with 
        counties and other local or tribal governments, court-
        supervised or IV-D agency-supervised employment programs for 
        noncustodial parents who have barriers to employment and a 
        history of nonpayment of child support obligations, as 
        determined by a court or the IV-D agency, and who are 
        determined by the court or agency to be in need of employment 
        services or placement in order to pay child support 
        obligations. A noncustodial parent described in the preceding 
        sentence who is an ex-offender shall be eligible to participate 
        in a program established under this subsection.
            (2) Requirements.--
                    (A) Option to participate prior to contempt 
                finding.--A State shall not be eligible to receive a 
                grant under this subsection unless any program 
                established with funds made available under the grant 
                provides a noncustodial parent described in paragraph 
                (1) with an option to participate in the program prior 
                to the court or agency entering a finding that the 
                noncustodial parent is in contempt for failure to pay a 
                child support obligation and, potentially subject to 
                criminal penalties.
                    (B) Program goals.--An employment program 
                established with funds made available under a grant 
                awarded under this subsection shall be designed to do 
                the following:
                            (i) To assist a noncustodial parent 
                        described in paragraph (1) obtain and maintain 
                        unsubsidized employment.
                            (ii) To increase the amount of financial 
                        support received by children.
                            (iii) To help a noncustodial parent 
                        described in paragraph (1) improve 
                        relationships with their children and their 
                        children's custodial parent.
                    (C) 6 months of continuous, timely payments.--An 
                employment program established with funds made 
                available under this subsection shall not permit a 
                noncustodial parent placed in the program to graduate 
                from the program and avoid penalties for failure to pay 
                a child support obligation until the noncustodial 
                parent completes at least 6 months of continuous, 
                timely payment of the parent's child support 
                obligations.
                    (D) Use of funds.--
                            (i) Services provided under an employment 
                        program established with funds made available 
                        under this subsection must include the 
                        following:
                                    (I) Job placement, including job 
                                development and supervised job search 
                                as necessary.
                                    (II) Case management, including 
                                educational assessment and advising, 
                                vocational assessment and career 
                                exploration services, and court liaison 
                                services.
                                    (III) Counseling on responsible 
                                parenthood.
                                    (IV) Referral for support and 
                                educational services.
                                    (V) Employment retention services.
                            (ii) Services provided under an employment 
                        program established with funds made available 
                        under this subsection may include the 
                        following:
                                    (I) Remedial education services or 
                                educational referral.
                                    (II) Support funds for services 
                                such as transportation, child care, or 
                                short-term training.
                                    (III) Transitional jobs programs.
                                    (IV) Public-private career pathway 
                                partnerships established in accordance 
                                with subsection (b)(2).
                                    (V) Occupational skill training, 
                                including college credit programs.
                                    (VI) Curricula development.
                    (E) Administration.--A State that receives a grant 
                under this subsection may contract with a public or 
                private nonprofit organization, including a faith-based 
                or community-based organization, to administer (in 
                conjunction with the court of jurisdiction or the IV-D 
                agency) the court-supervised or IV-D agency-supervised 
                employment program.
    (b) Matching Requirement.--
            (1) In general.--The Secretary of Health and Human Services 
        may not award a grant to a State under this section unless the 
        State agrees that, with respect to the costs to be incurred by 
        the State in conducting a demonstration project with funds 
        provided under the grant, the State will provide to carry out 
        the project non-Federal contributions valued at 10 percent of 
        the amount of Federal funds paid to the State under such grant.
            (2) Non-federal contributions.--In this subsection, the 
        term ``non-Federal contributions'' includes contributions by 
        the State and by public and private entities that may be in 
        cash or in kind, but does not include any amounts provided by 
        the Federal Government, or services assisted or subsidized to 
        any significant extent by the Federal Government, or any amount 
        expended by a State before October 1, 2015.
    (c) Worker Protections and Labor Standards.--
            (1) Rate of pay; benefits and working conditions.--
                    (A) In general.--An employer of a participant in a 
                program or activity funded under this section shall pay 
                the participant at the rate paid to an employee of the 
                employer who is not a participant in the program or 
                activity and who performs comparable work at the 
                worksite, including periodic increases where 
                appropriate. If no other employee of the employer 
                performs comparable work at the worksite, the employer 
                shall pay the participant not less than the applicable 
                Federal or State minimum wage, whichever is higher.
                    (B) Benefits and conditions.--A State receiving a 
                grant under this section shall ensure that an 
                individual employed through participation in a program 
                or activity funded by the grant is provided with 
                benefits and working conditions at the same level and 
                to the same extent as the benefits and conditions are 
                provided to other employees of the employer of the 
                individual who have worked a similar length of time and 
                perform the same work.
            (2) Nonduplication.--
                    (A) In general.--A State receiving a grant under 
                this section shall ensure that the grant funds are used 
                only for a program or activity that does not duplicate, 
                and is in addition to, a program or activity otherwise 
                available in the locality of the program or activity.
                    (B) Private, nonprofit entity.--A State receiving a 
                grant under this section shall ensure that the grant 
                funds are not provided to a private nonprofit entity to 
                conduct a program or activity that is the same as or 
                substantially equivalent to a program or activity 
                provided by a State or local government agency in the 
                area in which the entity is located, unless the 
                requirements of paragraph (3) are met.
            (3) Nondisplacement.--
                    (A) In general.--An employer shall not displace an 
                employee or position (including partial displacement 
                such as reduction in hours, wages, or employment 
                benefits) or impair contracts for services or 
                collective bargaining agreements, as a result of the 
                use by the employer of a participant in a program or 
                activity funded under this section, and no participant 
                in the program or activity shall be assigned to fill 
                any established unfilled position vacancy.
                    (B) Job opportunities.--A job opportunity shall not 
                be created under this paragraph that will infringe on 
                the promotional opportunity of an employed individual.
                    (C) Limitation on services.--
                            (i) Supplantation of hiring.--A participant 
                        in a program or activity funded under this 
                        section shall not perform any service or duty, 
                        or engage in any activity, that will supplant 
                        the hiring of an employee that is not a 
                        participant in the program or activity.
                            (ii) Duties formerly performed by another 
                        employee.--A participant in a program or 
                        activity funded under this section shall not 
                        perform any service or duty, or engage in any 
                        activity, that is a service, duty, or activity 
                        that had been performed by or was assigned to 
                        any employee who--
                                    (I) resigned or was discharged less 
                                than 3 months before the date on which 
                                the participant performs the service or 
                                duty or engages in the activity;
                                    (II) is subject to a reduction in 
                                force;
                                    (III) has recall rights pursuant to 
                                a collective bargaining agreement or 
                                applicable personnel procedures;
                                    (IV) is on leave (such as terminal, 
                                temporary, vacation, emergency, or sick 
                                leave);
                                    (V) is on strike; or
                                    (VI) is being locked out.
                    (D) Concurrence of local labor organization.--A 
                State conducting a demonstration project funded under 
                this section shall ensure that no participant in a 
                program or activity of the project is placed with an 
                employer until the entity conducting the program or 
                activity has obtained the written concurrence of any 
                local labor organization representing employees who are 
                engaged in the same or substantially similar work as 
                that proposed to be carried out for the employer with 
                whom a participant is to be placed under the program or 
                activity.
            (4) No effect on union organizing.--A State conducting a 
        demonstration project funded under this section shall provide 
        the Secretary of Health and Human Services with assurance 
        certified by both the State and the entity conducting a program 
        or activity funded under this section that none of the funds 
        shall be used to assist or deter union organizing.
            (5) Accountability.--
                    (A) In general.--A State receiving a grant under 
                this section shall not use the grant funds to subsidize 
                training or employment with an employer that has a 
                demonstrable record of noncompliance with Federal 
                labor, civil rights, workplace safety, or related laws.
                    (B) Certified satisfactory record.--Employers who 
                receive training or wage subsidies under programs or 
                activities funded under this section shall have a 
                satisfactory record in labor relations and employment 
                practices, as certified by the Secretary of Labor.
                    (C) Application of worker protection laws.--A 
                participant in a program or activity funded under this 
                section shall be considered to be an employee of any 
                employer that the participant is placed with for all 
                purposes under Federal and State law, including laws 
                relating to health and safety, civil rights, and 
                worker's compensation.
                    (D) Other job quality standards.--Employers who 
                receive training or wage subsidies under programs or 
                activities funded under this section shall meet all 
                applicable State or local job or employer quality 
                standards regarding such issues as wages, benefits, 
                advancement opportunities, and turnover rates 
                established for programs funded under the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801 et seq.).
            (6) Grievance procedure.--An entity conducting a program or 
        activity funded under this section shall establish and maintain 
        a procedure for the filing and adjudication of grievances by 
        employees of worksite employers who are not participants in the 
        program, or such employees' representatives, or by participants 
        in such a program or activity alleging a violation of a 
        provision of this subsection, that is similar to the grievance 
        procedure established by a State for purposes of section 
        407(f)(3) of the Social Security Act.
            (7) Nonpreemption of state law.--The provisions of this 
        subsection shall not be construed to preempt any provision of 
        State law that affords greater protections to employees or 
        participants than are afforded by this subsection.
            (8) Treatment of amounts paid to participants.--Amounts 
        paid to a participant in a program or activity funded under 
        this section shall be--
                    (A) considered earned income for purpose of 
                determining the participant's eligibility for the child 
                tax credit established under section 24 of the Internal 
                Revenue Code of 1986, the earned income tax credit 
                established under section 32 of such Code, and any 
                other tax benefit under such Code the eligibility for 
                which is based on earned income; and
                    (B) disregarded for purposes of determining the 
                participant's, the participant's family's, or the 
                participant's household's eligibility for, or amount 
                of, assistance or benefits provided under any means-
                tested program funded in whole or in part with Federal 
                funds.
    (d) Application.--
            (1) In general.--A State desiring to receive a grant to 
        conduct a demonstration project under this section shall submit 
        an application to the Secretary of Health and Human Services, 
        at such time and in such manner as the Secretary may require, 
        which shall include--
                    (A) evidence of an agreement between the State and 
                1 or more counties to establish an employment program 
                that meets the requirements of subsection (a);
                    (B) the number of potential noncustodial parents to 
                be served by the program;
                    (C) the purposes specific to that State's program;
                    (D) the median income of potential individuals to 
                be served by the program; and
                    (E) such additional information or assurances as 
                the Secretary may require.
            (2) Compliance with worker protections and labor 
        standards.--The application shall include an assurance that the 
        State and any entity, in conducting a program or activity under 
        the project, shall comply with the worker protections and labor 
        standards established in accordance with such protections under 
        subsection (c).
            (3) Nondiscrimination.--The application shall include an 
        assurance that the State and any entity, in conducting a 
        program or activity under the demonstration project, shall 
        comply with section 188(a)(2) of the Workforce Investment Act 
        of 1998 (29 U.S.C. 2938(a)(2)) to the same extent that such 
        section would apply to the entity if the program or activity 
        was considered to be funded or otherwise financially assisted 
        under that Act.
            (4) Assurance grant will supplement, not supplant, other 
        state funding.--The application shall include an assurance from 
        the chief executive officer of the State that funds made 
        available under the grant will supplement, and not supplant, 
        other funds used by the State to establish or support 
        employment placements for low-income parents.
            (5) Applications by indian tribes or tribal 
        organizations.--The Secretary of Health and Human Services may 
        exempt an Indian tribe or tribal organization from any 
        requirement of this section that the Secretary determines would 
        be inappropriate to apply to the Indian tribe or tribal 
        organization, taking into account the resources, needs, and 
        other circumstances of the Indian tribe or tribal organization.
    (e) Priorities and Requirements for Awarding Grants.--
            (1) In general.--Subject to paragraphs (2) and (3), the 
        State shall give priority to making a grant under this section 
        to an entity that--
                    (A) demonstrates success with respect to meeting 
                the goals of quality job placement, long-term 
                unsubsidized job retention, and, where applicable, 
                increasing child support payments, decreasing unpaid 
                child support arrearages, and increasing the 
                involvement of low-income noncustodial parents with 
                their children through their participation in 
                responsible fatherhood activities, including 
                participation in programs that provide culturally 
                relevant curricula in core subjects including--
                            (i) conducting activities with children;
                            (ii) improving communication skills;
                            (iii) child support management;
                            (iv) providing financially for the family's 
                        security and well-being;
                            (v) managing stress and anger;
                            (vi) maintaining physical and mental 
                        health;
                            (vii) parenting and relationship skills;
                            (viii) child development; and
                            (ix) barriers to responsible parenthood, 
                        including substance abuse, unemployment, 
                        criminal justice system involvement, and 
                        inadequate housing; and
                    (B) coordinates with, and links individuals as 
                applicable to, other public and private benefits and 
                employment services for low-income adults, including 
                the criminal justice system, programs funded under 
                title IV of the Social Security Act, educational 
                assistance and student aid programs, and job training 
                or employment services, including State employment 
                agencies.
            (2) Performance measures.--In making a grant under this 
        section, the Secretary of Health and Human Services shall 
        ensure that a grantee demonstrates a plan for implementing 
        measures to track their performance with respect to meeting the 
        goals of quality job placement, long-term unsubsidized job 
        retention, and, where applicable, increasing child support 
        payments, decreasing child support arrearages, and increasing 
        the involvement of low-income noncustodial parents with their 
        children.
            (3) Reflective of target populations.--In making a grant 
        under this section, the Secretary of Health and Human Services 
        shall give priority to a State with a proposed demonstration 
        project that is designed to target low-income adults, including 
        custodial and noncustodial parents, and low-income married 
        couples.
    (f) Regulatory and Policy Flexibility.--The Secretary of Health and 
Human Services, in coordination with the Secretary of Education and the 
Attorney General, shall work with grantees under this section to 
resolve policy barriers that may impede blending of Federal resources 
to support these demonstration projects.
    (g) Evaluation.--The Secretary of Health and Human Services shall 
provide for an independent and rigorous evaluation of the demonstration 
projects conducted under this section that includes, to the maximum 
extent feasible, random assignment or other appropriate statistical 
techniques, in order to assess the effectiveness of the projects.
    (h) General Definitions.--In this section:
            (1) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa, and 
        includes an Indian tribe or tribal organization.
            (2) IV-D agency.--The term ``IV-D agency'' means the State 
        or local agency responsible for administering the State program 
        established pursuant to part D of title IV of the Social 
        Security Act.
            (3) Indian tribe; tribal organization.--The terms ``Indian 
        tribe'' and ``tribal organization'' have the meaning given the 
        terms in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
    (i) Appropriation.--Out of any money in the Treasury of the United 
States not otherwise appropriated, there are appropriated to carry out 
this section $15,000,000 for each of fiscal years 2016 through 2020.

SEC. 103. HEALTHY MARRIAGE PROMOTION AND RESPONSIBLE FATHERHOOD 
              PROGRAMS.

    (a) Voluntary Participation.--
            (1) Assurance.--Section 403(a)(2)(A)(ii)(II) of the Social 
        Security Act (42 U.S.C. 603(a)(2)(A)(ii)(II)) is amended--
                    (A) in item (aa), by striking ``and'';
                    (B) in item (bb), by striking the period and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
                                            ``(cc) if the entity is a 
                                        State or an Indian tribe or 
                                        tribal organization, to not 
                                        condition the receipt of 
                                        assistance under the program 
                                        funded under this part, under a 
                                        program funded with qualified 
                                        State expenditures (as defined 
                                        in section 409(a)(7)(B)(i)), or 
                                        under any other program funded 
                                        under this title, on enrollment 
                                        in any such programs or 
                                        activities; and
                                            ``(dd) to permit any 
                                        participant in a program or 
                                        activity funded under this 
                                        paragraph, including an 
                                        individual whose participation 
                                        is specified in the individual 
                                        responsibility plan developed 
                                        for the individual in 
                                        accordance with section 408(b), 
                                        to transfer to another such 
                                        program or activity upon 
                                        notification to the entity and 
                                        the State agency responsible 
                                        for administering the State 
                                        program funded under this 
                                        part.''.
            (2) Prohibition.--Section 408(a) of such Act (42 U.S.C. 
        608(a)) is amended by adding at the end the following:
            ``(13) Ban on conditioning receipt of tanf or certain other 
        benefits on participation in a healthy marriage or responsible 
        fatherhood program.--A State to which a grant is made under 
        section 403 shall not condition the receipt of assistance under 
        the State program funded under this part, under a program 
        funded with qualified State expenditures (as defined in section 
        409(a)(7)(B)(i)), or under any other program funded under this 
        title, on participation in a healthy marriage promotion 
        activity (as defined in section 403(a)(2)(A)(iii)) or in an 
        activity promoting responsible fatherhood (as defined in 
        section 403(a)(2)(C)(ii)).''.
            (3) Penalty.--Section 409(a) of such Act (42 U.S.C. 609(a)) 
        is amended by adding at the end the following:
            ``(17) Penalty for conditioning receipt of tanf or certain 
        other benefits on participation in a healthy marriage or 
        responsible fatherhood program.--If the Secretary determines 
        that a State has violated section 408(a)(13) during a 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) Activities Promoting Responsible Fatherhood.--Section 
403(a)(2)(C)(ii) of such Act (42 U.S.C. 603(a)(2)(C)(ii)) is amended--
            (1) in subclause (I), by striking ``marriage or sustain 
        marriage'' and insert ``healthy relationships and marriages or 
        to sustain healthy relationships or marriages'';
            (2) in subclause (II), by inserting ``educating youth who 
        are not yet parents about the economic, social, and family 
        consequences of early parenting, helping participants in 
        fatherhood programs work with their own children to break the 
        cycle of early parenthood,'' after ``child support payments,''; 
        and
            (3) in subclause (III), by striking ``fathers'' and 
        inserting ``low-income fathers and other low-income 
        noncustodial parents who are not eligible for assistance under 
        the State program funded under this part''.
    (c) Reauthorization.--Section 403(a)(2)(D) of such Act (42 U.S.C. 
603(a)(2)(D)) is amended--
            (1) by striking ``fiscal year 2012'' the 1st place it 
        appears and inserting ``each of fiscal years 2016 through 
        2020''; and
            (2) by striking ``fiscal year 2012'' the 2nd place it 
        appears and inserting ``a fiscal year''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2015.

SEC. 104. TANF WORK PARTICIPATION IMPROVEMENTS.

    (a) Elimination of Separate Work Requirements for 2-Parent 
Families.--
            (1) Work participation rate.--Section 407 of the Social 
        Security Act (42 U.S.C. 607) is amended--
                    (A) in subsection (a)--
                            (i) beginning in the heading, by striking 
                        ``Participation Rate Requirements'' and all 
                        that follows through ``A State'' in paragraph 
                        (1) and inserting ``Participation Rate 
                        Requirements.--A State''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1)(A), by striking 
                        ``subsection (a)(1)'' and inserting 
                        ``subsection (a)'';
                            (ii) by striking paragraph (2) and 
                        redesignating paragraphs (3), (4), and (5) as 
                        paragraphs (2), (3), and (4), respectively;
                            (iii) in paragraph (3) (as so 
                        redesignated), by striking ``paragraphs (1)(B) 
                        and (2)(B)'' and inserting ``determining 
                        monthly participation rates under paragraph 
                        (1)(B)''; and
                            (iv) in paragraph (4) (as so redesignated), 
                        by striking ``rates'' and inserting ``rate''.
            (2) Minimum weekly hours requirement.--Section 407(c)(1) of 
        the Social Security Act (42 U.S.C. 607(c)(1)) is amended--
                    (A) by striking ``General rules'' and all that 
                follows through ``For purposes of'' in subparagraph (A) 
                and inserting ``General rules--For purposes of''; and
                    (B) by striking subparagraph (B).
            (3) Limitation on penalty imposition.--In applying section 
        409(a)(3) of the Social Security Act for any of fiscal years 
        2007 through 2015, the Secretary of Health and Human Services 
        shall disregard the requirement imposed by section 407(a)(2) of 
        such Act.
    (b) Elimination of Distinction Between Core and Other Work 
Activities.--
            (1) In general.--Section 407(c)(1) of such Act (42 U.S.C. 
        607(c)(1)), as amended by subsection (a)(2) of this section, is 
        further amended by striking ``not fewer than'' and all that 
        follows through ``subsection (d),''.
            (2) Conforming amendment.--Section 407(c)(2) of such Act 
        (42 U.S.C. 607(c)(2)) is amended by striking subparagraph (C).
    (c) Elimination of Cap on Treating Vocational Educational Training 
as Work Participation.--Section 407(c)(2) of such Act (42 U.S.C. 
607(c)(2)) is amended by striking subparagraph (D).
    (d) Increase in Months of Educational Vocational Training That May 
Be Counted as Work Participation.--Section 407(d)(8) of such Act (42 
U.S.C. 607(d)(8)) is amended by striking ``12 months'' and inserting 
``24 months''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1 of the first fiscal year beginning after the date 
of the enactment of this Act and shall apply to the determination of 
minimum participation rates for months beginning on or after that date.

SEC. 105. BAN ON RECOVERY OF MEDICAID COSTS FOR BIRTHS.

    (a) Ban on Recovery.--
            (1) In general.--Section 454 of the Social Security Act (42 
        U.S.C. 654), 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 a semicolon; and
                    (C) by inserting after paragraph (34) the 
                following:
            ``(35) provide that, except as provided in section 
        1902(a)(25)(F)(ii), 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 471(a)(17) or 
        1912; and''.
            (2) Rule of construction.--Nothing in section 454(35) of 
        such Act, as added by paragraph (1), shall be construed as 
        affecting the application of section 1902(a)(25) of such Act 
        (42 U.S.C. 1396a(a)(25)) with respect to a State (relating to 
        the State Medicaid plan requirement for the State to take all 
        reasonable measures to ascertain the legal liability of third 
        parties to pay for care and services available under the plan).
    (b) Clarification That Ban on Recovery Does Not Apply With Respect 
to Insurance of a Parent With an Obligation To Pay Child Support.--
Clause (ii) of section 1902(a)(25)(F) of the Social Security Act (42 
U.S.C. 1396a(a)(25)(F)) is amended by inserting ``only if such third-
party liability is derived through insurance,'' before ``seek''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section take effect on October 1, 2015.
            (2) Extension of effective date for state law amendment.--
        In the case of a State plan under title XIX of the Social 
        Security Act which the Secretary of Health and Human Services 
        determines requires State legislation 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 the 
        session is considered to be a separate regular session of the 
        State legislature.

SEC. 106. IMPROVED COLLECTION AND DISTRIBUTION OF CHILD SUPPORT.

    (a) Distribution of Child Support.--
            (1) Full distribution of child support collected; reform of 
        rules for distribution of child support collected on behalf of 
        children in foster care.--
                    (A) In general.--Section 457 of the Social Security 
                Act (42 U.S.C. 657) is amended--
                            (i) by striking subsection (a) and 
                        inserting the following:
    ``(a) Full Distribution of Amounts Collected on Behalf of Any 
Family.--Subject to subsection (c), the entire amount collected on 
behalf of any family as support by a State pursuant to a plan approved 
under this part shall be paid by the State to the family.''; and
                            (ii) by striking subsections (c) through 
                        (e) and inserting the following:
    ``(c) Amounts Collected for Child for Whom Foster Care Maintenance 
Payments Are Made.--Notwithstanding the preceding provisions of this 
section, amounts collected by a State as child support for months in 
any period on behalf of a child for whom a public agency is making 
foster care maintenance payments under part E shall be paid to the 
public agency responsible for supervising the placement of the child, 
which may use the payments in the manner it determines will serve the 
best interests of the child, including setting such payments aside for 
the child's future needs or use.''.
                    (B) Foster care state plan amendment.--Section 
                471(a)(17) of such Act (42 U.S.C. 671(a)(17) is 
                amended--
                            (i) by inserting ``and consistent with the 
                        child's case plan'' after ``where 
                        appropriate''; and
                            (ii) by striking ``secure an assignment to 
                        the State of any rights to support'' and 
                        inserting ``establish paternity and establish, 
                        modify, and enforce child support 
                        obligations''.
                    (C) Social security act amendments.--
                            (i) Child support state plan amendment.--
                        Section 454 of such Act (42 U.S.C. 654), as 
                        amended by section 105(a)(1) of this Act, is 
                        amended by inserting after paragraph (35) the 
                        following:
            ``(36) provide that a State shall pay all collected child 
        support to the payee, except as provided in section 457(c).''.
                            (ii) Disbursement of support payments.--
                        Section 454B(c) of such Act (42 U.S.C. 654b(c)) 
                        is amended by adding at the end the following:
            ``(3) Disbursement to families.--The State disbursement 
        unit shall pay all collected child support to the payee, except 
        as otherwise provided in section 457.''.
            (2) Conforming amendments.--
                    (A) Section 409(a)(7)(B)(i)(I)(aa) of such Act (42 
                U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by striking 
                ``457(a)(1)(B)'' and inserting ``457(a)''.
                    (B) Section 454(5) of such Act (42 U.S.C. 654(5)) 
                is amended by striking ``(A) in any case'' and all that 
                follows through ``(B)''.
                    (C) Section 466(a)(3)(B) of such Act (42 U.S.C. 
                666(a)(3)(B)) is amended--
                            (i) by striking ``shall be distributed in 
                        accordance with section 457 in the case of 
                        overdue support assigned to a State pursuant to 
                        section 408(a)(3) or 471(a)(17), or, in any 
                        other case,''; and
                            (ii) by inserting ``or to the public agency 
                        responsible for supervising the placement of 
                        the child, which may use the payments in the 
                        manner the public agency determines will serve 
                        the best interest of the child'' before the 
                        semicolon.
    (b) Prohibition on Conditioning Receipt of TANF on Assignment of 
Support.--Section 408(a)(3) of the Social Security Act (42 U.S.C. 
608(a)(3)) is amended--
            (1) in the paragraph heading, by striking ``No assistance 
        for families not'' and inserting ``Prohibition on conditioning 
        assistance for families on'';
            (2) by inserting ``not'' after ``shall'';
            (3) by inserting ``or under a program funded with qualified 
        State expenditures (as defined in section 409(a)(7)(B)(i))'' 
        after ``this part''; and
            (4) by striking ``, not exceeding the total amount of 
        assistance so paid to the family,''.
    (c) Requirement To Disregard Percentage of Child Support Collected 
in Determining Amount and Type of TANF Assistance.--Section 408(a) of 
such Act (42 U.S.C. 608(a)), as amended by section 103(a)(2) of this 
Act and subsection (b) of this section, is amended by adding at the end 
the following new paragraph:
            ``(14) Requirement to disregard percentage of child support 
        collected in determining amount and type of tanf assistance.--A 
        State to which a grant is made under section 403 shall 
        disregard at least the same percentage of amounts collected as 
        support on behalf of a family as the percentage of earned 
        income that the State disregards, in determining the amount or 
        type of assistance provided to the family under the State 
        program funded under this part or under a program funded with 
        qualified State expenditures (as defined in section 
        409(a)(7)(B)(i)).''.
    (d) Restoration of Federal Funding.--Effective on the date of 
enactment of this Act, section 7309 of the Deficit Reduction Act of 
2005 (Public Law 109-171; 120 Stat. 147) is repealed and part D of 
title IV of the Social Security Act shall be applied as if the 
amendment made by subsection (a) of that section had not been enacted.
    (e) Repeal of Mandatory Fee for Child Support Collection.--
Effective on the date of enactment of this Act, section 7310 of the 
Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 147) is 
repealed and part D of title IV of the Social Security Act shall be 
applied as if the amendments made by that section had not been enacted.
    (f) Prohibition on Considering a Period of Incarceration Voluntary 
Unemployment.--Section 466(a) of the Social Security Act (42 U.S.C. 
666(a)) is amended by inserting after paragraph (19) the following:
            ``(20) Procedures relating to periods of incarceration of 
        noncustodial parents.--
                    ``(A) In general.--Procedures which require that, 
                in determining or modifying the amount of, or terms and 
                conditions of, any support obligation of a noncustodial 
                parent, the State--
                            ``(i) shall not consider any period of 
                        incarceration of such parent as a period of 
                        voluntary unemployment that disqualifies the 
                        parent from obtaining a modification of the 
                        support obligation consistent with the parent's 
                        ability to pay child support; and
                            ``(ii) subject to subparagraph (B) in the 
                        case of an incarcerated parent, may--
                                    ``(I) temporarily suspend any 
                                support obligation on the parent and 
                                the enforcement of any support 
                                obligation of the parent existing prior 
                                to the period of incarceration; and
                                    ``(II) temporarily prohibit the 
                                accrual of any interest on any support 
                                obligation of the parent existing prior 
                                to the period of incarceration during 
                                any such period.
                    ``(B) Notice and opportunity to challenge 
                suspension.--Such procedures shall require the State to 
                provide a custodial parent with--
                            ``(i) notice of any suspension of review, 
                        adjustment, or enforcement of a support 
                        obligation and of any prohibition on interest 
                        accrual on such obligation that is imposed in 
                        accordance with subparagraph (A)(ii); and
                            ``(ii) an opportunity to request that the 
                        suspension or prohibition be terminated or 
                        modified on the basis that the noncustodial 
                        parent has sufficient income or resources to 
                        continue payment of the support obligation 
                        during the noncustodial parent's period of 
                        incarceration.''.
    (g) Review and Adjustment of Child Support Arrearages Upon 
Request.--Section 466(a)(10) of such Act (42 U.S.C. 666(a)(10)) is 
amended by adding at the end the following:
                    ``(D) Review and adjustment of arrearages.--
                Procedures which require the State to review, and if 
                appropriate, reduce the balance of arrearages 
                permanently assigned to the State under part A or E of 
                this title, or under title XIX, pursuant to standards 
                and procedures established by the State, in cases where 
                the obligor lacks sufficient ability to pay the 
                arrears, adjustment will promote timely payment of 
                current support, or barriers, such as incarceration, 
                may have limited the ability of the obligor to timely 
                seek a modification of the order, and it is in the best 
                interests of the child to make such reduction. Nothing 
                in the preceding sentence shall be construed as 
                affecting arrearages that have not been permanently 
                assigned to the State under any such part or title.''.
    (h) Study and Report.--Not later than October 1, 2016, the 
Secretary of Health and Human Services shall study and submit a report 
to Congress regarding the following:
            (1) The effect of age eligibility restrictions for the 
        earned income tax credit established under section 32 of the 
        Internal Revenue Code of 1986 for individuals without 
        qualifying children on--
                    (A) the ability of young parents to pay child 
                support;
                    (B) compliance with child support orders; and
                    (C) the relationship between young noncustodial 
                parents and their children.
            (2) The impact of State earned income tax credit programs, 
        especially such programs with targeted benefits for 
        noncustodial parents, on--
                    (A) the ability of noncustodial parents to pay 
                child support;
                    (B) compliance with child support orders; and
                    (C) the relationship between noncustodial parents 
                and their children.
            (3) The challenges faced by legal immigrants and 
        individuals for whom English is not their primary language in 
        fulfilling child support and other noncustodial parenting 
        obligations.
    (i) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        section, the amendments made by this section shall take effect 
        on October 1, 2016, 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 that date, without regard to 
        whether regulations to implement the amendments are promulgated 
        by such date.
            (2) State option to accelerate effective date.--
        Notwithstanding paragraph (1), a State may elect to have the 
        amendments made by the preceding provisions of this section 
        apply to the State and to amounts collected by the State (and 
        to payments under such parts), on and after such date as the 
        State may select that is not later than September 30, 2016.

SEC. 107. COLLECTION OF CHILD SUPPORT UNDER THE SUPPLEMENTAL NUTRITION 
              ASSISTANCE PROGRAM.

    (a) Encouragement of Collection of Child Support.--Section 5 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
            (1) in subsection (e)--
                    (A) by redesignating paragraphs (5) and (6) as 
                paragraphs (6) and (7), respectively;
                    (B) in paragraph (4)(B), by striking ``paragraph 
                (6)'' and inserting ``paragraph (7)''; and
                    (C) by inserting after paragraph (4) the following:
            ``(5) Deduction for child support received.--
                    ``(A) In general.--A household shall be allowed a 
                deduction of 20 percent of all legally obligated child 
                support payments received from an identified or 
                putative parent of a child in the household if that 
                parent is not a household member.
                    ``(B) Order of determining deductions.--A deduction 
                under this paragraph shall be determined before the 
                computation of the excess shelter deduction under 
                paragraph (7).''; and
            (2) in subsection (k)(4)(B), by striking ``subsection 
        (e)(6)'' and inserting ``subsection (e)(7)''.
    (b) Simplified Verification of Child Support Payments.--Section 
5(n) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(n)) is 
amended--
            (1) in the subsection heading, by striking ``State Options 
        to Simplify'', and inserting ``Simplified''; and
            (2) by striking ``Regardless of whether'' and inserting the 
        following:
            ``(1) In general.--A household that is paying legally 
        obligated child support through the program under part D of 
        title IV of the Social Security Act (42 U.S.C. 651 et seq.) 
        shall receive--
                    ``(A) a deduction under subsection (e)(4); or
                    ``(B) an exclusion under subsection (d)(6);
        for child support payments made.
            ``(2) State options.--Regardless of whether''.
    (c) Inclusion of Economic Opportunities Programs in Definition of 
Work Program.--Section 6(o)(2) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015(o)(2)) is amended--
            (1) in subparagraph (C), by striking ``or'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E) participate in and comply with the 
                requirements of a demonstration project under section 
                102 of the Julia Carson Responsible Fatherhood and 
                Healthy Families Act of 2015;''.
    (d) Effective Date.--
            (1) In general.--This section and the amendments made by 
        this section take effect on October 1, 2015.
            (2) Implementation.--A State shall implement the amendments 
        made by subsections (a) and (b) for participating households at 
        the 1st certification, or 1st recertification, of the household 
        that occurs on or after October 1, 2015.

SEC. 108. GRANTS SUPPORTING HEALTHY FAMILY PARTNERSHIPS FOR DOMESTIC 
              VIOLENCE INTERVENTION AND PREVENTIONS.

    Section 403(a) of the Social Security Act (42 U.S.C. 603(a)) is 
amended by adding at the end the following new paragraph:
            ``(6) Grants supporting healthy family partnerships for 
        domestic violence intervention and prevention.--
                    ``(A) In general.--The Secretary shall award grants 
                on a competitive basis to healthy family partnerships 
                to develop and implement promising practices for--
                            ``(i) assessing and providing services to 
                        individuals and families affected by domestic 
                        violence, including through caseworker 
                        training, the provision of technical assistance 
                        to community partners, and the implementation 
                        of safe visitation and exchange programs; or
                            ``(ii) preventing domestic violence, 
                        particularly as a barrier to economic security, 
                        and fostering healthy relationships.
                    ``(B) Education services.--In awarding grants under 
                subparagraph (A), the Secretary shall ensure that 10 
                percent of the funds made available under such grants 
                are used for high schools and other secondary 
                educational institutions and institutions of higher 
                education to provide education services on the value of 
                healthy relationships, responsible parenting, and 
                healthy marriages characterized by mutual respect and 
                nonviolence, and the importance of building 
                relationships skills such as communication, conflict 
                resolution, and budgeting.
                    ``(C) Application.--The respective entity and 
                organization of a healthy family partnership entered 
                into for purposes of receiving a grant under this 
                paragraph shall submit a joint application to the 
                Secretary, at such time and in such manner as the 
                Secretary shall specify, containing--
                            ``(i) a description of how the partnership 
                        intends to carry out the activities described 
                        in subparagraph (A);
                            ``(ii) an assurance that funds made 
                        available under the grant shall be used to 
                        supplement, and not supplant, other funds used 
                        by the entity or organization to carry out 
                        programs, activities, or services described in 
                        subparagraph (A) or (B); and
                            ``(iii) such other information as the 
                        Secretary may require.
                    ``(D) General rules governing use of funds.--The 
                rules of section 404, other than subsection (b) of that 
                section, shall not apply to a grant made under this 
                paragraph.
                    ``(E) Definitions.--In this paragraph:
                            ``(i) Domestic violence.--The term 
                        `domestic violence' has the meaning given that 
                        term in section 402(a)(7)(B).
                            ``(ii) Healthy family partnership.--The 
                        term `healthy family partnership' means a 
                        partnership between--
                                    ``(I) an entity receiving funds 
                                under a grant made under paragraph (2) 
                                to promote healthy marriage or 
                                responsible fatherhood; and
                                    ``(II) an organization with 
                                demonstrated expertise working with 
                                survivors of domestic violence.
                    ``(F) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for each of fiscal 
                years 2016 through 2020, $25,000,000 to carry out this 
                paragraph.''.

SEC. 109. PROCEDURES TO ADDRESS DOMESTIC VIOLENCE.

    (a) In General.--Section 403(a)(2) of the Social Security Act (42 
U.S.C. 603(a)(2)) is amended--
            (1) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (F) and (G), respectively; and
            (2) by inserting after subparagraph (C) the following:
                    ``(D) Requirements for receipt of funds.--An entity 
                may not be awarded a grant under this paragraph unless 
                the entity, as a condition of receiving funds under 
                such a grant--
                            ``(i) identifies in its application for the 
                        grant the domestic violence experts at the 
                        local, State, or national level with whom the 
                        entity will consult in the development and 
                        implementation of the programs and activities 
                        of the entity;
                            ``(ii) on award of the grant, and in 
                        consultation with such domestic violence 
                        experts, develops a written protocol which 
                        describes--
                                    ``(I) how the entity will identify 
                                instances or risks of domestic 
                                violence;
                                    ``(II) the procedures for 
                                responding to such instances or risk, 
                                including making service referrals and 
                                providing protections and appropriate 
                                assistance for identified individuals 
                                and families;
                                    ``(III) how confidentiality issues 
                                will be addressed; and
                                    ``(IV) the domestic violence 
                                training that will be provided to 
                                ensure effective and consistent 
                                implementation of the protocol; and
                            ``(iii) in an annual report to the 
                        Secretary, includes a description of the 
                        domestic violence protocols, and a description 
                        of any implementation issues identified with 
                        respect to domestic violence and how the issues 
                        were addressed.
                    ``(E) Domestic violence defined.--In this 
                paragraph, the term `domestic violence' has the meaning 
                given the term in section 402(a)(7)(B).''.
    (b) Conforming Amendments.--Section 403(a)(2) of such Act (42 
U.S.C. 603(a)(2)), as amended by section 103(d) of this Act and 
subsection (a)(1) of this section, is amended--
            (1) in subparagraph (A)(i)--
                    (A) by striking ``and (E)'' and inserting ``(D), 
                and (G)''; and
                    (B) by striking ``(D)'' and inserting ``(F)''; and
            (2) in subparagraphs (B)(i) and (C)(i), by striking ``(D)'' 
        each place it appears and inserting ``(F)''.

SEC. 110. TANF EMPLOYMENT FUND.

    (a) In General.--Section 403(b) of the Social Security Act (42 
U.S.C. 603(b)) is amended to read as follows:
    ``(b) Employment Fund.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a fund which shall be known as 
        the `Employment Fund for Needy Families' (in this subsection 
        referred to as the `Fund'.)
            ``(2) Deposits into fund.--Out of any money in the Treasury 
        of the United States not otherwise appropriated, there are 
        appropriated for each of fiscal years 2017 and 2018, 
        $608,000,000 for payment to the Fund, which shall remain 
        available until expended.
            ``(3) Grants.--
                    ``(A) In general.--For each of fiscal years 2017 
                and 2018, the Secretary shall make a grant to any 
                qualifying entity as provided in this paragraph.
                    ``(B) Qualifying entity.--For purposes of this 
                paragraph, a qualifying entity for a fiscal year is a 
                State, territory, Indian tribe, or tribal organization 
                that submits to the Secretary an application for a 
                grant under this paragraph for the fiscal year, in such 
                manner and at such time as the Secretary may require.
                    ``(C) Allotment of funds.--
                            ``(i) Technical assistance.--The Secretary 
                        shall reserve $10,000,000 out of the amounts 
                        made available under paragraph (2) for each 
                        fiscal year to provide technical assistance to 
                        qualifying entities receiving a grant under 
                        this paragraph for the fiscal year.
                            ``(ii) Territories and indian tribes.--The 
                        Secretary shall reserve, from the amount made 
                        available under paragraph (2) for a fiscal year 
                        that remains after applying clause (i), 3 
                        percent for grants under this paragraph for the 
                        fiscal year to qualifying entities that are 
                        territories and 1 percent for grants under this 
                        paragraph for the fiscal year to qualifying 
                        entities that are Indian tribes or tribal 
                        organizations, to be allotted in a manner the 
                        Secretary determines to be appropriate.
                            ``(iii) States.--
                                    ``(I) In general.--The amount of a 
                                grant under this paragraph payable for 
                                a fiscal year to a qualifying entity 
                                that is a State shall be the amount 
                                that bears the same ratio to the 
                                aggregate amount as the number of 
                                individuals residing in the State who 
                                have attained 18 years of age but have 
                                not attained 67 years of age who are 
                                not employed, as determined by the 
                                Secretary, bears to the total number of 
                                such individuals residing in all 
                                qualifying entities that are States.
                                    ``(II) Aggregate amount.--For 
                                purposes of this clause, the term 
                                `aggregate amount' means the amount 
                                made available for a fiscal year under 
                                paragraph (2) that remains after 
                                applying clauses (i) and (ii).
                            ``(iv) Unused funds.--
                                    ``(I) Reasonable limits on carrying 
                                over funds.--The Secretary shall set 
                                reasonable limits on the amount of 
                                funds a State receiving a grant under 
                                this paragraph may carry over for 
                                expenditure in fiscal years after the 
                                fiscal year for which the grant is 
                                awarded.
                                    ``(II) Redistribution of unused 
                                funds.--Any portion of the amount of a 
                                grant made to a State under clause 
                                (iii) that the Secretary determines 
                                will not be used by the State shall be 
                                redistributed among the States that the 
                                Secretary determines will not have such 
                                an unused amount, using the rules 
                                specified in clause (iii). Any amount 
                                so redistributed to a State is deemed 
                                part of the grant made to the State 
                                under the preceding provisions of this 
                                paragraph.
                    ``(D) Use of funds.--
                            ``(i) Employment programs.--
                                    ``(I) Subsidized employment.--A 
                                qualifying entity awarded a grant under 
                                this paragraph shall use the grant 
                                funds to conduct a subsidized 
                                employment program to assist recipients 
                                of TANF cash assistance and TANF-
                                eligible individuals who are not 
                                recipients of cash assistance in 
                                obtaining paid employment.
                                    ``(II) Sectoral skills training.--A 
                                qualifying entity may use not more than 
                                15 percent of funds awarded to the 
                                entity under this paragraph for a 
                                fiscal year to conduct a sectoral 
                                skills training program to provide 
                                sectoral skills training to recipients 
                                of TANF cash assistance and TANF-
                                eligible individuals who are not 
                                recipients of cash assistance.
                            ``(ii) Allowable expenses.--A qualifying 
                        entity may use funds awarded under this 
                        paragraph to carry out clause (i), including 
                        the following activities:
                                    ``(I) Administrative expenses.
                                    ``(II) Supportive services, 
                                including transportation and child 
                                care, to enable individuals to 
                                participate in a program described in 
                                clause (i).
                                    ``(III) Wages and associated 
                                payroll costs for individuals 
                                participating in the subsidized 
                                employment program described in clause 
                                (i)(I).
                            ``(iii) Eligibility for assistance.--
                                    ``(I) Requirement to use 75 percent 
                                of funds to assist recipients of tanf 
                                cash assistance.--A qualifying entity 
                                shall use not less than 75 percent of 
                                funds awarded to the entity under this 
                                paragraph to assist under the program 
                                described in clause (i)(I) (and, if the 
                                entity so elects, the program described 
                                in clause (i)(II)) recipients of TANF 
                                cash assistance and may use the 
                                remainder of the funds to assist TANF-
                                eligible individuals who are not 
                                recipients of cash assistance.
                                    ``(II) Recipient of tanf cash 
                                assistance.--In this subparagraph, the 
                                term `recipient of TANF cash 
                                assistance' means an individual who--
                                            ``(aa) has attained 18 
                                        years of age and has not 
                                        attained 67 years of age; and
                                            ``(bb) is not employed and 
                                        is determined by the qualifying 
                                        entity to have been 
                                        unsuccessful at obtaining paid 
                                        employment after participating 
                                        in a job search program; and--

                                                    ``(AA) is a member 
                                                of a family that 
                                                receives cash 
                                                assistance under the 
                                                State program funded 
                                                under this part or any 
                                                other State program 
                                                funded with qualified 
                                                State expenditures (as 
                                                defined in section 
                                                409(a)(7)(B)(i)); or

                                                    ``(BB) is a 
                                                noncustodial parent of 
                                                a minor child residing 
                                                with a family described 
                                                in item (aa), in a case 
                                                in which the parent is 
                                                not considered by the 
                                                State to be a member of 
                                                the family.

                                    ``(III) TANF-eligible individual 
                                who is not a recipient of cash 
                                assistance.--In this subparagraph, the 
                                term `TANF-eligible individual who is 
                                not a recipient of cash assistance' 
                                means an individual who--
                                            ``(aa) has attained 18 
                                        years of age and has not 
                                        attained 67 years of age;
                                            ``(bb) is not employed and 
                                        is determined by the qualifying 
                                        entity to have been 
                                        unsuccessful at obtaining paid 
                                        employment after participating 
                                        in a job search program;
                                            ``(cc) is not an individual 
                                        described in subitems (AA) or 
                                        (BB) of subclause (II)(bb); and
                                            ``(dd) is a member of a 
                                        family that includes a minor 
                                        child residing with the family 
                                        (including a noncustodial 
                                        parent of the child) if the 
                                        family has an income that is 
                                        less than the poverty line (as 
                                        defined in section 673(2) of 
                                        the Omnibus Budget 
                                        Reconciliation Act of 1981, 
                                        including any revision required 
                                        by such section, applicable to 
                                        a family of the size involved).
                    ``(E) Annual report.--
                            ``(i) Subsidized employment.--For each 
                        fiscal year for which an eligible entity 
                        receives a grant under this paragraph, the 
                        entity shall submit to the Secretary a report 
                        on the subsidized employment program described 
                        in subparagraph (D)(i)(I), including a 
                        description of--
                                    ``(I) the design of the wage 
                                subsidy provided to individuals 
                                receiving employment assistance under 
                                the program (in this clause referred to 
                                as `subsidized employees');
                                    ``(II) requirements imposed on 
                                employers by the State as a condition 
                                of participating in the program;
                                    ``(III) the types of jobs in which 
                                subsidized employees are placed;
                                    ``(IV) demographic information for 
                                subsidized employees and for the target 
                                population the entity seeks to assist 
                                under the program;
                                    ``(V) the total number of 
                                subsidized employees participating in 
                                the program during the fiscal year;
                                    ``(VI) the average number of hours 
                                worked per week by a subsidized 
                                employee;
                                    ``(VII) the average length of time 
                                for which a subsidized employee 
                                participates in the program; and
                                    ``(VIII) the employment outcomes 
                                for subsidized employees after 
                                participating in the program, including 
                                the number of individuals hired by an 
                                employer with which the individual was 
                                placed during the program and the 
                                number of individuals hired by other 
                                employers.
                            ``(ii) Sectoral skills training.--If an 
                        eligible entity elects to conduct a sectoral 
                        skills training program described in 
                        subparagraph (D)(i)(II), the report required 
                        under clause (i) of this subparagraph shall 
                        also include a description of--
                                    ``(I) the design of the program;
                                    ``(II) the industries in which 
                                individuals receiving assistance under 
                                the program (in this clause referred to 
                                as `trainees') receive training;
                                    ``(III) demographic information for 
                                trainees and for the target population 
                                the entity seeks to assist under the 
                                program;
                                    ``(IV) the total number of trainees 
                                participating in the program during the 
                                fiscal year;
                                    ``(V) the average number of hours 
                                per week for which a trainee receives 
                                training;
                                    ``(VI) the average length of time 
                                for which a trainee participates in the 
                                program; and
                                    ``(VII) the employment outcomes for 
                                trainees after participating in the 
                                program.
                    ``(F) Evaluation.--The Secretary shall establish 
                and implement a rigorous system for evaluating the 
                success of subsidized employment programs and sectoral 
                training programs conducted pursuant to this paragraph.
            ``(4) Definitions.--In this subsection:
                    ``(A) Indian tribe; tribal organization.--The terms 
                `Indian tribe' and `tribal organization' have the 
                meaning given such terms in section 4 of the Indian 
                Self-Determination and Education Assistance Act (25 
                U.S.C. 450b).
                    ``(B) Sectoral skills training.--The term `sectoral 
                skills training' means training that implements a 
                sectoral skills training strategy established by an 
                industry or sector partnership (as defined in section 
                3(26) of the Workforce Innovation and Opportunity Act).
                    ``(C) State.--The term `State' means each of the 50 
                States of the United States and the District of 
                Columbia.
                    ``(D) Territories.--The term `territories' means 
                Puerto Rico, Guam, the United States Virgin Islands, 
                the Northern Mariana Islands, and American Samoa.''.
    (b) Program Participants Counted Toward Work Participation Rate.--
Section 407(b) of such Act (42 U.S.C. 607(b)), as amended by section 
104(a)(1)(B) of this Act, is amended by adding at the end the 
following:
            ``(5) State option to include subsidized employment and 
        sectoral skills training participants.--
                    ``(A) If an individual who is not a recipient of 
                assistance under the State program funded under this 
                part (or any other State program funded with qualified 
                State expenditures (as defined in section 
                409(a)(7)(B)(i)) participates in work activities for 
                not less than the minimum average number of hours per 
                week specified in the table in subsection (c)(1) of 
                this section during a month as part of a State's 
                subsidized employment or sectoral skills training 
                program funded under section 403(b), the State may 
                count the individual as a family that includes an adult 
                or a minor child head of household who is engaged in 
                work for the month for purposes of paragraph (1)(B) of 
                this subsection.''.
    (c) State Plan Required To Include Description of Employment 
Programs.--Section 402(a)(1)(B) of such Act (42 U.S.C. 602(a)(1)(B)) is 
amended by adding at the end the following:
                            ``(vi) The document shall indicate whether 
                        the State intends to apply for a grant to 
                        conduct a subsidized employment program and, if 
                        the State so chooses, a sectoral skills 
                        training program, under section 403(b). If so, 
                        the document shall include a description of the 
                        program or programs the State intends to 
                        conduct using the grant funds and a description 
                        of how the program or programs will serve 
                        noncustodial parents of minor children.''.
    (d) Grants Exempted From Territorial Payment Ceiling.--Section 
1108(a)(2) of such Act (42 U.S.C. 1308(a)(2)) is amended by inserting 
``403(b),'' after ``403(a)(5),''.
    (e) Conforming Amendments To Retain Definition of a Needy State.--
            (1) Number of weeks for which job search counts as work.--
        Section 407(c)(2)(A) of such Act (42 U.S.C. 607(c)(2)(A)) is 
        amended--
                    (A) in clause (i), by striking ``section 
                409(a)(7)(B)(i))'' and inserting ``clause (iii)''; and
                    (B) by adding at the end the following:
                            ``(iii) Needy state.--For purposes of 
                        clause (i), a State is a needy State for a 
                        month if--
                                    ``(I) the average rate of--
                                            ``(aa) total unemployment 
                                        in such State (seasonally 
                                        adjusted) for the period 
                                        consisting of the most recent 3 
                                        months for which data for all 
                                        States are published equals or 
                                        exceeds 6.5 percent; and
                                            ``(bb) total unemployment 
                                        in such State (seasonally 
                                        adjusted) for the 3-month 
                                        period equals or exceeds 110 
                                        percent of such average rate 
                                        for either (or both) of the 
                                        corresponding 3-month periods 
                                        ending in the 2 preceding 
                                        calendar years; or
                                    ``(II) as determined by the 
                                Secretary of Agriculture (in the 
                                discretion of the Secretary of 
                                Agriculture), the monthly average 
                                number of individuals (as of the last 
                                day of each month) participating in the 
                                supplemental nutrition assistance 
                                program in the State in the then most 
                                recently concluded 3-month period for 
                                which data are available exceeds by not 
                                less than 10 percent the lesser of--
                                            ``(aa) the monthly average 
                                        number of individuals (as of 
                                        the last day of each month) in 
                                        the State that would have 
                                        participated in the 
                                        supplemental nutrition 
                                        assistance program in the 
                                        corresponding 3-month period in 
                                        fiscal year 1994 if the 
                                        amendments made by titles IV 
                                        and VIII of the Personal 
                                        Responsibility and Work 
                                        Opportunity Reconciliation Act 
                                        of 1996 had been in effect 
                                        throughout fiscal year 1994; or
                                            ``(bb) the monthly average 
                                        number of individuals (as of 
                                        the last day of each month) in 
                                        the State that would have 
                                        participated in the 
                                        supplemental nutrition 
                                        assistance program in the 
                                        corresponding 3-month period in 
                                        fiscal year 1995 if the 
                                        amendments made by titles IV 
                                        and VIII of the Personal 
                                        Responsibility and Work 
                                        Opportunity Reconciliation Act 
                                        of 1996 had been in effect 
                                        throughout fiscal year 1995.''.
            (2) Authority of secretary to reduce work participation 
        rate penalty due to circumstances that caused state to become 
        needy state.--Section 409(a)(3)(C) of such Act (42 U.S.C. 
        609(a)(3)(C)) is amended by striking ``section 403(b)(5)'' and 
        inserting ``section 407(c)(2)(A)(iii)''.
    (f) Effective Date.--The amendments made by this section shall 
apply with respect to fiscal years beginning after the date of the 
enactment of this Act.

SEC. 111. SENSE OF CONGRESS.

    It is the sense of the Congress that a State to which a grant is 
made under section 403 of the Social Security Act should consider a 
noncustodial parent of a minor child, if the child is a recipient of 
assistance under a State program funded under part A of title IV of 
such Act (or under any other State program funded with qualified State 
expenditures (as defined in section 409(a)(7)(B)(i) of such Act), to be 
a member of the family of the child for purposes of providing 
assistance to the family, the child, and the noncustodial parent under 
the program.

                      TITLE II--REVENUE PROVISION

SEC. 201. INCREASE IN CREDIT PERCENTAGE UNDER EARNED INCOME TAX CREDIT 
              FOR ELIGIBLE INDIVIDUALS WITH NO QUALIFYING CHILDREN.

    (a) In General.--The row in the table in section 32(b)(1) of the 
Internal Revenue Code of 1986 relating to no qualifying children is 
amended to read as follows:


 
 
------------------------------------------------------------------------
``No qualifying children......................           20      7.65''.
------------------------------------------------------------------------

    (b) Income Phaseout for Eligible Individuals With No Qualifying 
Children.--The table in section 32(b)(2)(A) of such Code is amended by 
striking ``$5,280'' and inserting ``$11,500''.
    (c) Reduction of Marriage Penalty Made Permanent.--
            (1) In general.--Section 32(b)(2)(B) of such Code is 
        amended to read as follows:
                    ``(B) Joint returns.--In the case of a joint return 
                filed by an eligible individual and such individual's 
                spouse, the phaseout amount determined under 
                subparagraph (A) shall be increased by $5,000.''.
            (2) Conforming amendment.--Section 32(b) of such Code is 
        amended by striking paragraph (3).
    (d) Increase in Age Range for Eligible Individuals With No 
Qualifying Child.--Section 32(c)(1)(A)(ii)(II) of such Code is 
amended--
            (1) by striking ``age 25'' and inserting ``age 21'', and
            (2) by striking ``age 65'' and inserting ``age 68''.
    (e) Taxpayer Eligible for Credit for Individuals With No Qualifying 
Children if Qualifying Children Do Not Have Valid Social Security 
Numbers.--Section 32(c)(1)(F) of such Code is amended to read as 
follows:
                    ``(F) Individuals who do not include tin, etc., of 
                any qualifying child.--In the case of any eligible 
                individual who has one or more qualifying children, 
                if--
                            ``(i) no qualifying child of such 
                        individual is taken into account under 
                        subsection (b) by reason of paragraph (3)(D), 
                        and
                            ``(ii) no child of such individual is taken 
                        into account for purposes of any other child 
                        tax benefit under this chapter,
                for purposes of the credit allowed under this section, 
                such individual may be considered an eligible 
                individual without a qualifying child.''.
    (f) Expanding the EITC for Certain Former Foster Youth.--Section 
32(c)(1) of such Code, as amended by subsection (e), is amended by 
adding at the end the following:
                    ``(G) Foster youth.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), the term `eligible 
                        individual' shall include an individual who is 
                        a qualified foster youth.
                            ``(ii) Qualified foster youth defined.--For 
                        purposes of clause (i), the term `qualified 
                        foster youth' means an individual who--
                                    ``(I) has attained age 18 but not 
                                attained age 21 before the close of the 
                                taxable year, and
                                    ``(II) on or after attaining the 
                                age of 14 was placed in a foster family 
                                home by an agency of a State or a 
                                political subdivision thereof or by a 
                                qualified foster care placement agency 
                                (as defined by section 131(b)(3)).''.
    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.
                                 <all>