[Congressional Record Volume 148, Number 34 (Thursday, March 21, 2002)]
[Senate]
[Pages S2274-S2276]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER:
  S. 2052. A bill to amend part A of title IV of the Social Security 
Act to reauthorize and improve the temporary assistance to needy 
families program, and for other purposes; to the Committee on Finance.

[[Page S2275]]

  Mr. ROCKEFELLER. Mr President, I am proud to introduce a bill that 
reauthorizes the landmark welfare reform legislation passed 1996. It 
will allow States to continue their excellent work on behalf of 
families on welfare. This reauthorization bill is designed to allow 
states to continue to provide the flexible initiatives that have 
reduced national welfare caseloads by over 50 percent and moved 
millions of Americans from welfare to work.
  Welfare reform was a bold experiment to dramatically change a major 
social program. In 1996, Congress ended the entitlement of eligible 
families with children to cash aid. The results five years later are 
impressive. Over two-thirds of the people who are leaving the welfare 
rolls have left for work.
  Six years ago, we said the goal of welfare reform should be to 
promote work and to protect children. We stood here together, on 
unchartered ground, and endorsed significant policy changes that we 
believed would help families gain independence and economic self-
sufficiency, while protecting the children. States began to revise 
welfare service delivery with guidance based on the new reforms. Each 
state designed and implemented programs that were unique and specific 
to their populations.
  While there are still many challenges facing families who are 
struggling to make the transition from welfare to work, as well as 
challenges facing States in administering the program, I believe that 
we are on the right course. It is essential to keep on course and 
support the fundamental principles adopted in 1996, as well as maintain 
new State flexibility in order to reward and continue the innovations 
made by the States.
  In West Virginia, welfare reform has brought bold changes. Parents on 
welfare get extra support as they face new responsibilities and 
obligations to make the transition from welfare to jobs. Last summer, I 
hosted a roundtable discussion to meet with individual West Virginians 
who were undergoing major life transitions. They told me that they were 
proud to be working, but that it was often still a struggle to make 
ends meet and do the best for their children. The goal of this 
legislation is to help those parents, and millions more, to promote the 
well-being of their children even as they work.
  Today, I am introducing the Personal Responsibility and Work 
Opportunity Reconciliation Act Amendments of 2002. States are making 
measurable progress. We should continue to build on this foundation, 
and not reduce State flexibility. It is essential we continue welfare 
reform, not unravel it, or restructure it.
  This bill acknowledges that we must keep the focus on work, by both 
requiring and rewarding work. To ensure a real focus on helping parents 
leave welfare rolls for a job, this legislation gradually replaces the 
caseload reduction credit with a new employment credit. States will 
only get a bonus toward their work participation requirement if parents 
move from welfare to a job. This credit will acknowledge the dignity of 
all work by providing a bonus for parents who get jobs, both full and 
part-time. A mother who has never worked in her life and then gets a 
part-time job has had a true accomplishment, and that deserves 
recognition. It is also the first step toward independence.
  I am especially grateful to Senator Lincoln and Congressman Levin for 
their leadership and vision in designing this new incentive. It is an 
empowering approach to promoting work and sends the proper message to 
families who are striving to become self sufficient. I am pleased to 
incorporate their proposal into my bill.
  At this point, with a soft economy, it would be unwise to 
significantly change State TANF programs to impose drastically higher 
work participation rates requiring 40 hours per job placement 
activities would be, plain and simple, an unfunded mandate.
  State officials have testified before the Finance Committee that such 
changes would force States to restructure existing programs that are 
working and turn their focus away from those who need some assistance 
with child care or transportation, but are no longer dependent on a 
welfare check. We should not turn away from helping our working 
families while spending limited resources to meet new, and arbitrary, 
work rates and hours.
  To promote work, it is essential to help working parents. We 
obviously must invest more in child care funding to help parents stay 
on the job. My proposal seeks to increase guaranteed child care funding 
for this provision by $1 billion each year. This increase is designed 
to address existing needs of the current TANF program.
  This bill would continue the transitional Medicaid program so 
families can keep health care coverage for a year as they move from 
welfare to work. In 1996, I was proud to work with Senator Breaux and 
the late Senator John Chafee to protect access to health care for such 
vulnerable families. I have incorporated Senator Breaux's bipartisan 
bill to continue transitional Medicaid coverage and I appreciate his 
leadership on this and other key issues. Our bill also gives states 
more flexibility and options to place parents in vocational training 
and English as a Second Language programs so parents can get jobs. In 
recognition of Maine's success with the Parents as Scholar program, 
states have the option to follow the Maine model for 5 percent of their 
caseload to combine work and education.
  Because States are investing more in the existing welfare program 
than the current $16.5 billion grant, this legislation would provide a 
modest increase of $2.5 billion in the basic TANF block grant over the 
next five years. The new TANF funding would be allocated based on 
the number of poor children. In 1996, Congress promised States that it 
would fully fund the Social Services Block Grant at $2.8 billion 
dollars. The block grant is a flexible resource to states to help 
families, and many States use it for child care. Unfortunately, its 
funding was slashed to $1.7 billion in recent years. I believe that 
since the States kept their promise on welfare reform, Congress should 
keep our promise to fund the Social Services Block Grant.

  The bill also invests $200 million to create BusinessLink Grants, 
competitive grants to support public and private partnerships to help 
parents get jobs. The Welfare-to-Work Partnership is just one example 
of how nonprofits working with business leaders can make a real 
difference. The Partnership includes over 20,000 businesses that have 
provided more than 1 million jobs to parents moving from welfare to 
work. I have met with the board members of this group, and we should 
encourage such partnerships. I know that other groups, like the 
Salvation Army and Good Will, are doing important work on providing 
transitional job opportunities, and these organizations would be 
eligible for grants as well.
  A job is the first step, but for welfare parents to make a successful 
transition to independence, they need a range of supports. To achieve 
this goal, the bill will create Pathways to Self-Sufficiency Grants to 
improve this support network for parents. These grants are intended to 
provide incentives and support to TANF caseworkers and nonprofit 
organizations to help improve the comprehensive network of supports for 
working families, including Medicaid, CHIP, child care, EITC, and a 
range of services. Working mothers deserve to know what type of support 
will be available so that they do not slip back into welfare.
  Work is fundamental, but we also need to be concerned about important 
aspects of the lives of children and children. This legislation creates 
a Family Formation Fund to encourage health families, reduce teenage 
pregnancy, and improve child support and participation of parents in 
children's lives. The bill authorizes Second Chance homes, an 
innovative program to help teenage parents get the support and 
education they need. The bill seeks to end certain discrimination and 
harsh rules for two-parent families in the current system. If our goal 
is to support marriage, we should not penalize married couples.
  Our legislation also makes a simple, but important change. Under the 
current TANF program, each welfare parent has an Individual 
Responsibility Plan that serves as an assessment and work plan. In 
addition to having a responsibility to work, parents have a 
responsibility to protect their children's well-being. To emphasize 
this fundamental point, this bill adds language directing states to 
incorporate the concept of a child's well-being into each

[[Page S2276]]

parent's Individual Responsibility Plan. States have great flexibility, 
but it is important to send a clear message that one of a parent's 
responsibilities is the well-being of their children.
  This legislation builds on the foundation of the 1996 Personal 
Responsibility and Work Opportunity Reconciliation Act. My hope is that 
this framework will help promote bipartisan discussion about how we can 
make even more improvements in our welfare system, while maintaining 
our partnership with the States. We all must work together, the 
Administration, the Congress and the States, to improve our partnership 
to help families move from welfare to work.
  I ask unanimous consent to print the section-by-section summary of my 
bill in the Record.
  There being no objection, the section by section analysis was ordered 
to be printed in the Record, as follows:

                      Section by Section Analysis


                         TITLE I--TANF Funding

       Increase the main TANF grant of $16.5 by adding $2.5 
     billion over 5 years, based on the number of poor children 
     per state. It will gradually increase the TANF block grant 
     from $16.5 billion in 2003 to $17.4 billion in 2007.
       The Supplemental Grants are renewed, in an expanded manner, 
     and ``built into'' the main TANF funding stream. Under 
     expansion, 34 States will qualify, compared to 17 States in 
     the past. The new Supplemental Grant is $472,749,000 per 
     year.
       The Contingency Fund is reinstated in a more effective 
     form.
       A $300 million bonus fund is created to reward States which 
     reduce poverty, along the lines of the ``high performance'' 
     bonus. In addition, States which show an increase in child 
     poverty are required to include ``measurable milestones'' in 
     their corrective action plans.
       Reauthorization of other grants, such as bonus grants to 
     high performance states and grants for Indian Tribes, and 
     continuation of penalties for failure of any State to 
     maintain certain level of historic effort.
       Funding for the Social Services Block Grant, SSBG, which 
     funds an array of needed programs including day care, 
     education and training programs, and services for victims of 
     domestic violence, is restored to $2.8 billion per year, as 
     is the 10 percent TANF transfer authority, as promised in the 
     original 1996 welfare reform law.


                       TITLE II--Supporting Work

       Replace caseload reduction credit with employment credit 
     beginning with fiscal year 2005. Employment credit will 
     reward States in which families leave welfare for work; 
     additional credit will be awarded for families leaving 
     welfare with higher earnings.
       Guaranteed funding for the mandatory component of the Child 
     Care Development Block Grant, CCDBG, is increased from $2.7 
     billion to $3.7 billion per year. The TANF transfer authority 
     continues.
       States which adopt a ``Parents as Scholars'' program, which 
     combines work and post-secondary education, may count 
     participants in such a program as meeting the work 
     participation requirements, up to a maximum of 5 percent of a 
     State's caseload. Vocational training and education are 
     permitted to count toward the work participation requirements 
     for up to 24 months, not 12, and teenage mothers completing 
     high school are exempt from the 30 percent cap. States can 
     count up to 10 hours of ESL, with assessment, toward work 
     participation.
       Provide $200 million over five years for new Business Link 
     grants to create public/private partnerships to encourage 
     employers to design innovative ways, including transitional 
     jobs, to help individuals moving from welfare to work.


                     TITLE III--Supporting Families

       Eliminate the stricter work participation requirement for 
     two-parent families.
       States are prohibited from imposing stricter eligibility 
     criteria for two-parent families, such as continuing the AFDC 
     ``100 hour'' rule. In addition, the work participation rate 
     for two-parent families is conformed to that for one-parent 
     families.
       Create a Family Formation Fund to provide $100 million for 
     research, technical assistance, and best practices in three 
     areas, including; 1. formation of two-parent families, 2. 
     reducing teen pregnancy, and 3. increasing the ability of 
     non-custodial parents to support and be involved in their 
     children's lives.
       Since a child's well-being is part of a parent's 
     responsibility, states are directed to include child well-
     being as part of the Individual Responsibility Pan for all 
     parents in the program.


                      TITLE IV--State Flexibility

       New Pathway to Self-Sufficiency Grants, $150 million over 5 
     years, are made available to improve coordination of benefit 
     systems and to conduct outreach to low-income families, 
     working families in particular, to promote enrollment of 
     eligible families in assistance programs. States, local 
     governments, and non-profit organizations are eligible to 
     receive the grants, with a preference for applications which 
     involve collaborations.
       States deserve flexibility and the option to offer wage 
     subsidies to parents who meet the existing work requirements 
     but need modest income support. Such subsidies would be 
     considered ``work supports'' and as such would be treated as 
     work supports, and not count toward the federal 60-month time 
     limit.
       Retain the 20 percent hardship waivers for State 
     flexibility, but allow States that select the Domestic 
     Violence Option to serve the victims of domestic violence as 
     a separate and distinct category, since this option has 
     specific rules, including a 6-month review.
       States operating under 1996 waivers are permitted to 
     continued doing so.
       Provide States with the option to align foster care and 
     adoption assistance eligibility with TANF eligibility. States 
     must retain the income and assets standards for foster care 
     established in the 1996 welfare reform law as the minimum 
     standard, but States would have the option of updating the 
     standards to align them with TANF eligibility. This is 
     designed to streamline administrative work, and is similar to 
     State flexibility to align food stamp vehicle rules to TANF 
     vehicle rules.
       Allow States to cover eligible legal immigrants under TANF, 
     regardless of date of entry.
       Give States more flexibility to transfer TANF funds to 
     carry out existing transportation-for-jobs programs or 
     reverse commute projects.


                       TITLE V--Healthy Children

       Provide transitional Medicaid to parents and children 
     making the transition from welfare to work. Provide States 
     with the option of automatically enrolling families who leave 
     TANF for a job in Medicaid for a full year, without the 
     necessity of reapplying.
       States will have an option to provide Medicaid and CHIP 
     services to legal immigrant children and pregnant women, 
     regardless of date of entry.
       Authorize $32 million for Second Chance Homes for teenage 
     expectant mothers. These facilities allow these girls to live 
     in a safe environment and receive formal and parenting 
     education and prenatal care.


                    TITLE VI--Public Accountability

       To improve accountability, States are required to make 
     public the financial and program data submitted to the 
     Department of Health and Human Services, HHS, when the data 
     is transmitted, including posting the information on the 
     State's web site.
       Under current law, four antidiscrimination statutes apply 
     to activities funded by TANF: the Age Discrimination Act of 
     1975; Section 504 of the Rehabilitation Act of 1973; the 
     Americans with Disabilities Act of 1990; and Title VI of the 
     Civil Rights Act of 1964. GAO is required to conduct a review 
     of how States have complied with the requirements of these 
     laws and make recommendations for improving compliance. HHS 
     is also required to issue a ``best practices'' guide for 
     States in complying with these laws in TANF.
       Ensure that an adult in a family receiving TANF and engaged 
     in a work activity shall not displace any public employee or 
     position.
       Conduct longitudinal studies in 10 States of TANF 
     applicants and recipients to determine the factors that 
     contribute to positive employment and family outcomes.
       A GAO study to determine the impact of the prohibition on 
     SSI benefits for legal immigrants.
       Grant to improve States' policies and procedures for 
     assisting individuals with barriers to work.
       GAO survey and evaluation of State activities on workforce 
     development for professional staff delivery in TANF and TANF-
     related services. The report should assess the range of 
     caseloads and effects of caseload on family outcomes and 
     satisfaction. The survey should provide information on the 
     qualifications, education and training for staff, and the 
     amount of staff turnover.
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