[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3583 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3583
To establish a pilot program in which States may use consolidated
funds, through Upward Mobility Grants, for antipoverty programs, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 6, 2026
Mr. Husted introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To establish a pilot program in which States may use consolidated
funds, through Upward Mobility Grants, for antipoverty programs, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Upward Mobility Act of 2026''.
SEC. 2. CONSOLIDATION OF ANTIPOVERTY PROGRAMS.
(a) Definitions.--In this section:
(1) Antipoverty objectives.--The term ``antipoverty
objectives'' means the objectives described in subsection
(b)(2).
(2) Antipoverty program.--The term ``antipoverty program''
means the set of activities for which a covered amount may be
used.
(3) Covered amount.--
(A) In general.--Subject to subparagraph (B), the
term ``covered amount'' means--
(i) an amount that a State is eligible to
receive in Federal funds, through a grant,
contract, or other payment--
(I) under subsection (a) or (h) of
section 16 of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025) (relating
to the supplemental nutrition
assistance program);
(II) for benefits (as defined in
section 3 of the Food and Nutrition Act
of 2008 (7 U.S.C. 2012)) for
participants of the supplemental
nutrition assistance program
established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et
seq.) pursuant to section 4(a)(1) of
that Act (7 U.S.C. 2013(a)(1));
(III) under paragraph (1) or (2) of
section 403(a) of the Social Security
Act (42 U.S.C. 603(a)) (relating to the
temporary assistance for needy families
program State family assistance grant);
(IV) under section 658O(b) of the
Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858m(b)), from
amounts appropriated under that Act or
under section 418(a)(3)(A) of the
Social Security Act (42 U.S.C.
618(a)(3)(A)) (relating to a program of
child care services);
(V) under section 2604 (other than
subsection (e)), 2607A, 2607B, or 2609A
of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8623,
8626a, 8626b, or 8628a) (relating to
programs of home energy assistance);
(VI) under section 132(b)(2)(B) or
section 170 of the Workforce Innovation
and Opportunity Act (29 U.S.C.
3171(b)(2)(B), 3225) (relating to
assistance for dislocated workers); and
(VII) under subsection (b) or (d)
of section 106 of the Housing and
Community Development Act of 1974 (42
U.S.C. 5306) (relating to community
development);
(ii) the amount that public housing
agencies, as defined in section 3(b) of the
United States Housing Act of 1937 (42 U.S.C.
1437a(b)), located in a State are eligible to
receive through allocations--
(I) under section 8(o) of such Act
(42 U.S.C. 1437f(o)) for tenant-based
assistance; and
(II) under section 9 of such Act
(42 U.S.C. 1437g) for public housing
from the Capital Fund and Operating
Fund; and
(iii) the amount that persons and families
located in a State (other than members of an
Indian tribe) are eligible to receive in
Federal assistance under section 521 of the
Housing Act of 1949 (42 U.S.C. 1490a).
(B) Rule.--The term ``covered amount''--
(i) includes an amount described in
subparagraph (A) whether or not the State or
public housing agency involved is directed to
use the amount to provide funding for
localities or other entities under Federal law,
subject to clause (ii); and
(ii) does not include any amount described
in subparagraph (A) that a State or public
housing agency is so directed to use to provide
funding for an Indian tribe.
(4) Direct assistance benefits.--The term ``direct
assistance benefits'' means--
(A) nutrition (including food) benefits;
(B) cash benefits for low-income families and
individuals;
(C) child care subsidies;
(D) home energy (including utility) assistance;
(E) employment and training services provided
directly to a dislocated worker; and
(F) housing (including rent) subsidies.
(5) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Act (25 U.S.C. 5304).
(6) Marginal effective tax rate.--The term ``Marginal
Effective Tax Rate'', used with respect to an individual, means
the percentage of an increase in earned income attributable to
the individual's employment, as determined for a State under
subsection (j)(2), that is offset by--
(A) the combined reduction or loss in value of per-
capita direct assistance for the individual; and
(B) the combined increase in Federal, State, and
local income and payroll taxes for the individual.
(7) Per-capita direct assistance.--The term ``per-capita
direct assistance'', used with respect to a State, means--
(A) the total amount of Federal funding used in a
pilot project in any year for direct assistance
benefits from the funding sources listed in paragraph
(3); divided by
(B) the population of the State.
(8) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services, acting through the Assistant
Secretary for Children and Families.
(9) State.--The term ``State'' means each of the several
States of the United States, and the District of Columbia.
(b) Purposes.--The purposes of this Act are--
(1) to achieve the goals of--
(A) streamlining service delivery and reducing
inconsistent eligibility requirements and benefit
cliffs through pilot projects promoting antipoverty
objectives;
(B) promoting upward mobility through improved
employment outcomes described in subsection (j)(2)(B),
including increased employment and earnings, among
participants in a pilot project; and
(C) providing incentives to States to reduce
dependence on per-capita direct assistance through the
pilot projects by enabling individuals to achieve the
improved employment outcomes; and
(2) to accomplish those goals by authorizing States to
apply to receive Upward Mobility Grants for the purpose of
carrying out a pilot project to promote antipoverty objectives,
consisting of--
(A) reduced benefit cliffs through benefit
structures that limit Marginal Effective Tax Rates; and
(B) increased levels of employment and earnings
among participants in programs covered by the pilot
project, skills acquisition, housing (including rental
housing) affordability, access to nutrition, reduced
home energy costs, affordable child care, and temporary
assistance to low-income families.
(c) Establishment.--
(1) In general.--There is established a pilot program
through which the Secretary may--
(A) permit not more than 5 States to carry out
pilot projects; and
(B) consolidate funding from antipoverty programs
into Upward Mobility Grants made under subsection
(d)(1), and make those grants to the States to carry
out the projects.
(2) Limited scope pilot projects.--A State may elect to
seek such permission and consolidated funding to carry out a
limited scope pilot project described in the State's
application under subsection (f).
(3) Duration.--The Secretary shall provide the permission
and grants described in this subsection for a pilot project for
a single period of 5 years.
(d) Upward Mobility Grants.--
(1) Pilot project grant amounts.--Notwithstanding any other
provision of Federal law applicable to an antipoverty program,
except as otherwise provided in this section, for each fiscal
year of the pilot project period applicable to a pilot project
approved for a State pursuant to subsection (g), the Secretary
shall make an Upward Mobility Grant to the State, as calculated
under paragraph (2), for purposes of carrying out the project
for that fiscal year.
(2) Calculation.--
(A) First year.--For the first fiscal year of the
pilot project, the Secretary shall make an Upward
Mobility Grant to the State, in a sum calculated as the
total of the covered amounts received by the State, for
the preceding fiscal year, adjusted by the percentage
change in the Personal Consumption Expenditures Price
Index of the Bureau of Economic Analysis of the
Department of Commerce for such preceding fiscal year.
(B) Subsequent years.--For each fiscal year of the
pilot project (referred to in this subparagraph as a
``target fiscal year'') after the first fiscal year
described in subparagraph (A), the Secretary shall make
an Upward Mobility Grant to the State, in an updated
sum equal to the sum calculated for the State under
this paragraph for the preceding fiscal year,
adjusted--
(i) by the percentage change in that
Personal Consumption Expenditures Price Index
between the first day of the preceding fiscal
year and the first day of the target fiscal
year; and
(ii) in a manner consistent with the per-
capita direct assistance adjustment prohibition
described in subsection (k).
(C) Adjustment for appropriations lapse.--
(i) First year.--For the purposes of
determining, under subparagraph (A), a total of
covered amounts for a preceding fiscal year in
which there was a lapse in appropriations, the
total of the covered amounts shall be
determined as if the corresponding funding was
appropriated for the entire fiscal year.
(ii) Subsequent years.--For the purposes of
determining, under subparagraph (B), a sum
calculated for a State for a preceding fiscal
year in which there was a lapse in
appropriations, the sum shall be determined as
if the corresponding funding was appropriated
for the entire fiscal year.
(D) Limited scope pilot projects.--Notwithstanding
subparagraphs (A) and (B), if a State has obtained
approval to carry out a limited scope pilot project
under this section, the Upward Mobility Grant for the
State shall be a percentage, between 10 and 100
percent, as indicated by the State in the application
submitted under subsection (f) of the amount the State
would otherwise receive under subparagraph (A) or (B).
(3) Payments.--For each fiscal year quarter during the
pilot project, the Secretary shall make a payment to the State
under the Upward Mobility Grant, equal to 25 percent of the
amount of the grant.
(e) Impact of Participation.--
(1) Waiver.--Notwithstanding any other provision of Federal
law applicable to an antipoverty program, except as otherwise
provided in this section, if a State elects to carry out a
pilot project and obtains approval of an application under
subsection (g), the Secretary shall, subject to paragraph (2)
and consistent with the goals of the antipoverty programs
included in the pilot project, grant the State, for purposes of
the pilot project, such waivers to statutory or regulatory
requirements, as the State requests in its application--
(A) relating to consolidating, replacing, or
altering eligibility requirements;
(B) relating to the design, operation, or delivery
of an antipoverty program; and
(C) relating to the use, allocation, or
distribution of funding.
(2) Provisions excluded from waiver authority.--A waiver
shall not be granted under paragraph (1) with respect to any
provision of law relating to--
(A) the goals of any antipoverty program;
(B) civil rights or the prohibition of
discrimination;
(C) health or safety;
(D) labor standards under the Fair Labor Standards
Act of 1938 (29 U.S.C. 201 et seq.);
(E) environmental protection;
(F) any restriction on providing benefits to
individuals who are not citizens of or are unlawfully
present in the United States;
(G) the protection of religious freedom for
providers and beneficiaries of assistance;
(H) any funding restriction or limitation provided
in an appropriations Act;
(I) a maintenance of effort requirement; or
(J) any requirement that a State distribute to a
sub-State entity part or all of an amount paid to the
State.
(3) Housing programs.--Funds made available under a pilot
project for the goals of an antipoverty program related to a
covered amount described in clause (i)(VII), (ii), or (iii) of
subsection (a)(3)(A) shall continue to be provided to the same
eligible local entities or recipients as under applicable law
in effect as of the date of enactment of this Act.
(4) Impact on funding.--
(A) In general.--During the period of the pilot
project--
(i) the State shall not be eligible to
receive Federal funding for the antipoverty
programs, outside the pilot project; and
(ii) individuals receiving per-capita
direct assistance through the pilot project
shall not be eligible for additional benefits
under the antipoverty programs, outside the
pilot project.
(B) Exceptions.--Notwithstanding subparagraph (A),
in the case of a State carrying out a limited scope
pilot project described in subsection (c)(2), the State
may continue to receive Federal funding for the
antipoverty programs, outside the pilot project.
(C) SNAP contingency fund.--
(i) In general.--Notwithstanding
subparagraph (A), on the request of a State
carrying out a pilot project, the Secretary of
Agriculture may use contingency reserve funding
made available under the provisions described
in clause (ii) to provide benefits to
individuals receiving per-capita direct
assistance through the pilot project under the
supplemental nutrition assistance program
established under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.) during a period of
economic downturn, a natural disaster, a public
health emergency, or another unanticipated
event that increases the demand for those
benefits, as determined by the Secretary of
Agriculture.
(ii) Provisions described.--The provisions
referred to in clause (i) are the following:
(I) The matter under the heading
``supplemental nutrition assistance
program'' under the heading ``Food and
Nutrition Service'' under the heading
``DOMESTIC FOOD PROGRAMS'' in title IV
of division B of the Continuing
Appropriations, Agriculture,
Legislative Branch, Military
Construction and Veterans Affairs, and
Extensions Act, 2026 (Public Law 119-
37).
(II) The matter under the heading
``supplemental nutrition assistance
program'' under the heading ``Food and
Nutrition Service'' under the heading
``DOMESTIC FOOD PROGRAMS'' in title IV
of division B of the Consolidated
Appropriations Act, 2024 (Public Law
118-42; 138 Stat. 93).
(III) Section 1109 of the Full-Year
Continuing Appropriations and
Extensions Act, 2025 (Public Law 119-4;
139 Stat. 13).
(D) Temporary assistance for needy families (tanf)
contingency fund.--Notwithstanding subparagraph (A), on
the request of a State carrying out a pilot project,
the Secretary may use funds available under section
403(b) of the Social Security Act (42 U.S.C. 603(b)) to
provide benefits to individuals receiving per-capita
direct assistance under the temporary assistance for
needy families program established under part A of
title IV of the Social Security Act (42 U.S.C. 601 et
seq.) through the pilot project during a period of
economic downturn, a natural disaster, a public health
emergency, or another unanticipated event that
increases the demand for those benefits, as determined
by the Secretary. Nothing in the preceding sentence
shall be construed as requiring the State carrying out
the pilot project to submit a request under section
403(b) of the Social Security Act (42 U.S.C. 603(b))
during an eligible month (as defined in paragraph (4)
of such section) for payment of funds under such
section or for the Secretary to determine that the
State is an eligible State for purposes of such
section.
(E) Low-income home energy assistance program
(liheap) emergency fund.--Notwithstanding subparagraph
(A), on the request of a State carrying out a pilot
project, the Secretary may use funds available under
section 2602(e) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621(e)) (in addition
to meeting the objectives described in that section) to
provide benefits to households that include individuals
receiving per-capita direct assistance through the
pilot project under the Low-Income Home Energy
Assistance Program established under that Act during a
period of economic downturn, a natural disaster, a
public health emergency, or another unanticipated event
that increases the demand for those benefits, as
determined by the Secretary.
(F) Emergency funding.--
(i) In general.--Notwithstanding
subparagraph (A), nothing shall prohibit a
State carrying out a pilot project from
receiving an appropriation described in clause
(ii), and using that appropriation to provide
benefits to individuals receiving per-capita
direct assistance through the pilot project.
(ii) Appropriation.--An appropriation
described in this clause is an appropriation--
(I) for an antipoverty program
related to a covered amount described
in subsection (a)(3)(A); and
(II) made in an Act other than an
regular appropriations Act.
(5) Clarification.--A waiver granted to a State under
paragraph (1) includes a waiver for agencies, persons, and
families in the State described in clauses (ii) and (iii) of
subsection (a)(3)(A).
(f) Applications.--To be eligible to receive an Upward Mobility
Grant to carry out a pilot project under this section, a State shall
submit an application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require,
including--
(1) information stating--
(A) how the State will utilize the Upward Mobility
Grant to achieve the antipoverty objectives described
in subsection (b)(2)(B);
(B) how the State will achieve the goals of the
antipoverty programs included in the pilot project
involved, including (as applicable to the programs
included) skills acquisition, housing (including rental
housing) affordability, access to nutrition, reduced
home energy costs, affordable child care, and temporary
assistance to low-income families; and
(C) how the State will ensure that funds made
available under the pilot project for the goals of an
antipoverty program related to a covered amount
described in clause (i)(VII), (ii), or (iii) of
subsection (a)(3)(A) shall continue to be provided to
the same eligible local entities or recipients as under
applicable law in effect as of the date of enactment of
this Act, and information demonstrating demonstrable,
substantive, and robust engagement with those local
entities and recipients on the waiver provisions
described in subsection (e)(1).
(2)(A) information stating which statutory and regulatory
requirements applicable to an antipoverty program the State
requests to be waived, as described in subparagraphs (A), (B),
and (C) of subsection (e)(1);
(B) a description of how the State will utilize the Upward Mobility
Grant funds to design and use a benefit structure for benefits and
services provided through the pilot project that promotes upward
mobility through improvements on the upward mobility measures outlined
in subsection (j)(2); and
(C) benchmark goals for improvements on those measures;
(3) information describing--
(A) the eligibility criteria established by the
State for pilot project participants;
(B) how the State, in carrying out the pilot
project, will--
(i) protect beneficiary data and privacy;
(ii) prevent fraudulent use of funds; and
(iii) maintain clear, auditable records for
all funds and services; and
(C) the program integrity measures established by
the State to ensure that the State provides direct
assistance benefits to eligible pilot project
participants in compliance with the criteria
established under subparagraph (A) and requirements
established under clauses (i), (ii), and (iii) of
subparagraph (B);
(4)(A) information describing how the State will apply the
work requirement for direct assistance benefit recipients
specified in subsection (h); and
(B) information describing the program integrity measures
established by the State to ensure compliance with that work
requirement;
(5) information demonstrating how the State will engage
nonprofit organizations, faith-based organizations, private
service providers, local governments, and other local entities
to deliver holistic, customized case management and a portion
of the services for the pilot project;
(6) information describing how the State will evaluate the
project by contracting under subsection (j) with an
independent, third-party evaluator, and will ensure the most
rigorous results from the evaluation and the strongest possible
measurement through the evaluation of the causal link between
the State's proposed benefit structure and the upward mobility
measures listed in subsection (j)(2), including--
(A) the methodology that will be used to evaluate
the pilot project;
(B) the data the State will collect and provide to
the evaluator;
(C) the process by which the State will collect the
data to provide to the evaluator; and
(D) information on the evaluator's qualifications,
including--
(i) confirmation that the evaluator is
independent from the State and from any
nonprofit organizations, faith-based
organizations, private service providers, local
governments, and other local entities
participating in the pilot project; and
(ii) information stating whether the
evaluator has demonstrated substantial
experience in conducting rigorous evaluations,
utilizing the methodology described under
subparagraph (A);
(7) information--
(A) describing how the State will utilize fiscal
savings resulting from improvements on upward mobility
measures under subsection (j)(2) to improve program
operations and infrastructure of programs covered by
the pilot project, including--
(i) establishing a State reserve fund to
provide temporary per-capita direct assistance
benefits to eligible individuals and households
during a period of economic downturn, a natural
disaster, a public health emergency, or another
unanticipated event that increases the demand
for those benefits, as determined by the
corresponding Secretary;
(ii) using the savings to improve program
management, eligibility verification, benefits
distribution, compliance monitoring, and
enforcement of the work requirement required
under subsection (h);
(iii) using the savings for renovation,
expansion, or maintenance of community
facilities to promote antipoverty objectives
described in subsection (b)(2)(B);
(iv) using the savings for resources for
capacity-building to increase collaboration
with and involvement of nonprofit
organizations, faith-based organizations,
private service providers, local governments,
and other local entities to deliver services
funded under the pilot project;
(v) using the savings to integrate program
operations, improve case management, streamline
client intake, or reduce administrative
duplication; and
(vi) providing work supports for
individuals who are employed and working hours
consistent with section 261.32 of title 45,
Code of Federal Regulations (or a successor
regulation), who are not receiving assistance
through the Upward Mobility Grant; and
(B) demonstrating how the supports described in
subparagraph (A)(vi) will be designed to--
(i) increase the level of hours worked for
those receiving such a support; and
(ii) increase the level of earnings for
those receiving such a support;
(8) at the election of the State, a proposal--
(A) that describes how the State will reduce
regulatory barriers for the purpose of increasing
market access to, or lowering the costs of, nutrition,
child care, home energy (including utilities),
employment and training services for dislocated
workers, or housing (including rental housing)
(referred to in this paragraph as ``covered basics'');
and
(B) that includes--
(i) identification of existing (as of the
date of submission) State regulatory barriers
that limit market entry to, or production or
supply of, any of the covered basics; and
(ii) actions the State will take to reduce,
streamline, or eliminate regulations
establishing such barriers; and
(9) in the case of a State seeking to carry out a limited
scope pilot project--
(A) a detailed description of the more limited
scope of the pilot project, including whether the
project will involve a limited percentage of the
individuals eligible to participate in the pilot
project, a limited geographic area, a limited number of
antipoverty programs, or some other limitation on the
project; and
(B) information indicating the percentage described
in subsection (d)(2)(D) that the State seeks to receive
through the pilot program.
(g) Evaluating and Approving Applications.--
(1) In general.--In order for a State to receive an Upward
Mobility Grant to carry out a pilot project under this section,
the State shall obtain approval from the Secretary of the
application for the pilot project submitted under subsection
(f).
(2) Comment period.--On receiving the application, the
Secretary shall--
(A) not later than 5 days after the date of that
receipt, provide notice on the website of the
Department of Health and Human Services of receipt of
the application; and
(B) give interested persons, including stakeholders
in the State, an opportunity to submit comments on the
application for a 30-day period beginning on the date
on which the Secretary provides notice under
subparagraph (A).
(3) Evaluation of applications.--In evaluating an
application to carry out a project, the Secretary shall--
(A) evaluate the application based on the extent to
which the project--
(i) will achieve the antipoverty objectives
described in subsection (b)(2)(B);
(ii) will achieve the goals described in
subsection (f)(1)(B); and
(iii) will meet the requirements described
in subsection (f)(1)(C) relating to provision
of funds and to engagement;
(B) evaluate the application based on the extent to
which the project will make improvements on the upward
mobility measures described in subsection (j)(2); and
(C) consider the extent to which the methodology of
the project evaluation under subsection (j) and data
collection under subsection (f) will--
(i) produce rigorous results, using
experimental designs that use--
(I) random assignment; or
(II) if random assignment is not
feasible, another reliable, evidence-
based research methodology that allows
for the strongest practicable causal
inferences; and
(ii) provide sufficient contextual
information on the characteristics of the
population served by the project, including
demographic and geographic information, to
assess the applicability of the project in
other settings.
(4) Priority.--In determining which applications to approve
under this subsection, the Secretary shall give priority to--
(A) applications for a pilot project with a program
design that limits--
(i) the average Marginal Effective Tax Rate
of an increase in earned income attributable to
employment through the pilot project to not
more than 50 percent; and
(ii) the average Marginal Effective Tax
Rate of an increase in such earned income to
not more than 50 percent, among participants
for whom such increase results in lack of
eligibility for any per-capita direct
assistance;
(B) applications the Secretary projects will most
make improvements on the upward mobility measures
described in subsection (j)(2);
(C) applications for a pilot project for which the
methodology described in paragraph (3)(C) will use an
experimental design that uses--
(i) random assignment; or
(ii) if random assignment is not feasible--
(I) a natural experiment design;
(II) a synthetic control method;
(III) a differences-in-differences
technique;
(IV) a regression discontinuity
method;
(V) an instrumental variable
method;
(VI) a panel data with mixed
effects method;
(VII) a propensity score matching
method; or
(VIII) a cross-sectional regression
method;
(D) applications that describe program integrity
measures that will maximize compliance with--
(i) the work requirement described in
subsection (h); and
(ii) the requirements established under
clauses (i), (ii), (iii) of subsection
(f)(3)(B).
(5) Approval or disapproval.--
(A) Grounds for disapproval.--In reviewing an
application, the Secretary determines that the project
will not achieve the antipoverty objectives described
in subsection (b)(2)(B), achieve the goals described in
subsection (f)(1)(B), or meet the requirements
described in subsection (f)(1)(C) relating to the
provision of funds and to engagement, the Secretary
shall disapprove the application. Nothing in this
subparagraph shall be construed to prevent the
Secretary from disapproving an application for another
reason specified in this section.
(B) Timeline.--The Secretary shall decide whether
or not to approve the application not later than 90
days after the date of receipt of the application.
(6) Process after disapproval.--If the Secretary decides to
disapprove the application of a State--
(A) the Secretary shall provide the State with a
detailed explanation of the decision;
(B) the State may submit a modified application to
the Secretary for approval; and
(C) if a modified application is submitted, the
Secretary shall make a decision on approval of the
application, after evaluating and giving priority as
described in paragraphs (3) and (4), not later than 30
days after the date of receipt of the modified
application.
(h) Work Requirement and Program Integrity.--
(1) SNAP requirements.--The requirements under subsections
(d) and (o) of section 6 of the Food and Nutrition Act of 2008
(7 U.S.C. 2015) shall apply to recipients of direct assistance
benefits under a pilot project carried out under this section,
subject to such changes to those requirements as the Secretary
determines necessary.
(2) Regulations; audit.--The Secretary shall--
(A) prescribe such regulations as the Secretary
determines necessary and appropriate to ensure
compliance with and State enforcement of the
requirements described in paragraph (1); and
(B) audit the program integrity measures described
in paragraphs (3)(C) and (4)(B) of subsection (f)
established by States.
(i) Data Sharing.--The Secretary shall facilitate data sharing,
concerning data and other information relating to antipoverty programs,
with Federal agencies and offices (other than the Administration for
Children and Families of the Department of Health and Human Services)
as necessary to administer the pilot program carried out under this
Act. The Secretary shall cooperate with each State participating in the
pilot program to coordinate access by Federal agencies and offices to
data and other information relating to antipoverty programs included in
the State's pilot project.
(j) Evaluations.--
(1) In general.--
(A) Determinations.--Each State that carries out a
pilot project under this Act shall enter into a
contract for an annual independent, third-party
evaluation of the pilot project, for purposes of
determining, for purposes of this section--
(i) per-capita direct assistance, and per-
capita direct assistance described in paragraph
(2)(C); and
(ii) improvement on the upward mobility
measures described in paragraph (2), as
described in paragraph (3).
(B) Qualifications.--The evaluator shall
demonstrate the independence described in clause (i),
and the substantial experience described in clause
(ii), of subsection (f)(6)(D).
(2) Upward mobility measures.--The State shall require the
evaluator to conduct annual evaluations of the pilot project on
upward mobility measures, which measure--
(A) the Marginal Effective Tax Rates, for pilot
project participants, of increases in earned income
attributable to employment through the pilot project;
(B) participant employment outcomes, consisting of
achievement of (relative to the full fiscal year that
precedes the date on which the Secretary approves the
application for the pilot project under subsection (g)
(referred to in this paragraph as the ``pre-
implementation year''))--
(i) higher earnings of participants;
(ii) a higher percentage of participants
with employment;
(iii) a higher percentage of participants
with full-time employment; and
(iv) a higher percentage of participants
who have retained employment;
(C) reduction (relative to the pre-implementation
year) in per-capita direct assistance by reducing the
dependence of participants on per-capita direct
assistance through improvement in employment outcomes
described in subparagraph (B);
(D) elimination or reduction in (relative to the
pre-implementation year) marriage penalties for
participants; and
(E) reduction (relative to the pre-implementation
year) in poverty among participants.
(3) Improvement.--The State shall require the evaluator, as
part of each annual evaluation, to measure--
(A) improvement (relative to the pre-implementation
year) on the upward mobility measures described in
paragraph (2); and
(B) improvement on the upward mobility measures,
relative to the benchmark goals described under
subsection (f)(2)(C).
(4) Use of evaluations.--The evaluator shall prepare and
submit to the Secretary a report containing the results of each
annual evaluation.
(5) Comparison.--The evaluator shall make comparisons on
the upward mobility measures by comparing the outcomes of the
entire population enrolled in the antipoverty programs related
to a covered amount described in subsection (a)(3)(A)(i) for
the preceding fiscal year described in subsection (d)(2)(A), to
the outcomes for that entire population enrolled in those
antipoverty programs (included in the pilot project or not so
included) for the year covered by the evaluation.
(k) Funding Adjustment.--No State shall receive an adjustment to an
Upward Mobility Grant because the State increased the amount of the
per-capita direct assistance provided, through an Upward Mobility
Grant.
SEC. 3. TRANSFERS AND SAVINGS PROVISION.
(a) Definitions.--For purposes of this section, unless otherwise
provided or indicated by the context--
(1) the term ``Administration'' means the Administration
for Children and Families;
(2) the term ``covered Federal agency'' means an agency, as
defined in section 551(1) of title 5, United States Code, that
carries out an antipoverty program;
(3) the term ``function'' means any duty, obligation,
power, authority, responsibility, right, privilege, activity,
or program;
(4) the term ``Secretary'' means the Secretary of Health
and Human Services, acting through the Assistant Secretary for
Children and Families; and
(5) the term ``transferred function'' means a function
(including a part of a function) transferred under this
section.
(b) Administrative Funding.--
(1) Amounts to states for administrative costs.--
(A) In general.--Notwithstanding any other
provision of this section, for each State carrying out
a pilot project under this Act, each head of a covered
Federal agency shall transfer to the State, for a
fiscal year, an amount that bears the same relationship
to the total amount of funding for administrative costs
of the antipoverty program involved for that fiscal
year for all States as the amount of funding the State
received for the nonadministrative costs of the program
for the prior fiscal year bears to the total amount of
funding that all States received for those costs for
the prior fiscal year.
(B) Determination.--For the purposes of
determining, under subparagraph (A), the funding a
State received for nonadministrative costs for a prior
fiscal year in which there was a lapse in
appropriations, the funding shall be determined as if
the corresponding money was appropriated for the entire
fiscal year.
(2) Limited scope pilot projects.--For a State carrying out
a limited scope pilot project under section 2(c)(2), the head
of the Federal agency shall adjust the amount to be transferred
under paragraph (1) to account for the limited scope.
(c) Transfer of Functions.--
(1) In general.--There are transferred to the
Administration a portion, determined by the Office of
Management and Budget, of the functions that the heads of
covered Federal agencies exercised before the date of the
enactment of this Act (including related functions of any
officer or employee of a covered Federal agency). The portion
shall consist of those functions (or parts of functions) that
the Office determines are appropriate for the Administration to
exercise in carrying out this Act.
(2) Delegation and assignment.--Except where otherwise
expressly prohibited by law or otherwise provided by this Act,
the Secretary may delegate any of the transferred functions to
such officers and employees of the Administration as the
Secretary may designate, and may authorize successive
redelegations of such functions as may be necessary or
appropriate. No delegation of transferred functions by the
Secretary under this section shall relieve such Secretary of
responsibility for the administration of such functions.
(3) Reorganization.--The Secretary is authorized to
allocate or reallocate any transferred function among the
officers of the Administration, and to establish, consolidate,
alter, or discontinue such organizational entities in the
Administration as may be necessary or appropriate.
(4) Transfer and allocations of appropriations and
personnel.--Except as otherwise provided in this Act, the
personnel employed in connection with, and the assets,
liabilities, contracts, property, records, and unexpended
balances of appropriations, authorizations, allocations, and
other funds employed, used, held, arising from, available to,
or to be made available in connection with the transferred
functions, subject to section 1531 of title 31, United States
Code, shall be transferred to the Administration. Unexpended
funds transferred pursuant to this section shall be used only
for the purposes for which the funds were originally authorized
and appropriated. The Director of the Office of Management and
Budget shall provide for such further measures and dispositions
as may be necessary to effectuate the purposes of this Act.
(5) Rules.--The Secretary is authorized to prescribe, in
accordance with the provisions of chapters 5 and 6 of title 5,
United States Code, such rules and regulations as the Secretary
determines necessary or appropriate to administer and manage
the functions of the Administration to carry out section 2.
(6) Transition.--The Secretary is authorized to utilize--
(A) the services of officers, employees, and other
personnel of a covered Federal agency with respect to
transferred functions; and
(B) funds appropriated to such functions for such
period of time as may reasonably be needed to
facilitate the orderly implementation of this Act.
(d) Savings Provisions.--
(1) Continuing effect of legal documents.--All orders,
determinations, rules, regulations, permits, agreements,
grants, contracts, certificates, licenses, registrations,
privileges, and other administrative actions--
(A) which have been issued, made, granted, or
allowed to become effective by the President, any
covered Federal agency or official thereof, or by a
court of competent jurisdiction, in the performance of
transferred functions; and
(B) which are in effect on the date of enactment of
this Act, or were final before that date and are to
become effective on or after that date,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, the Secretary or other
authorized official, a court of competent jurisdiction, or by
operation of law.
(2) Proceedings not affected.--The provisions of this Act
shall not affect any proceedings, including notices of proposed
rulemaking, or any application for any license, permit,
certificate, or financial assistance pending before any covered
Federal agency on the date of enactment of this Act, with
respect to transferred functions but such proceedings and
applications shall be continued. Orders shall be issued in such
proceedings, appeals shall be taken therefrom, and payments
shall be made pursuant to such orders, as if this Act had not
been enacted, and orders issued in any such proceedings shall
continue in effect until modified, terminated, superseded, or
revoked by a duly authorized official, by a court of competent
jurisdiction, or by operation of law. Nothing in this paragraph
shall be deemed to prohibit the discontinuance or modification
of any such proceeding under the same terms and conditions and
to the same extent that such proceeding could have been
discontinued or modified if this Act had not been enacted.
(3) Suits not affected.--The provisions of this Act shall
not affect suits commenced before the date of enactment of this
Act, and in all such suits, proceedings shall be had, appeals
taken, and judgments rendered in the same manner and with the
same effect as if this Act had not been enacted.
(4) Nonabatement of actions.--No suit, action, or other
proceeding commenced by or against a covered Federal agency, or
by or against any individual in the official capacity of such
individual as an officer of a covered Federal agency, shall
abate by reason of the enactment of this Act.
(5) Administrative actions relating to promulgation of
regulations.--Any administrative action relating to the
preparation or promulgation of a regulation by a covered
Federal agency relating to a transferred function may be
continued by the Administration with the same effect as if this
Act had not been enacted.
(6) References.--Reference in any other Federal law,
Executive order, rule, regulation, or delegation of authority,
or any document of or relating to--
(A) the head of a covered Federal agency with
regard to a transferred function, shall be deemed to
refer to the Secretary; and
(B) a covered Federal agency with regard to a
transferred function, shall be deemed to refer to the
Administration.
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